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Samsung Electronics Pressured By Shareholders

January 7, 2014 By Nancy Young Leave a Comment

The world’s biggest smartphone maker, Samsung Electronics, based in South Korea, has sparked calls from shareholders for dividends after it splashed out what was estimated to be $1 billion on an employee bonus.

Apple’s arch rival drew from its nearly $50 billion in cash to mark a 20-year anniversary, just months after it was criticized by shareholders for not spending enough to make its dividend yield higher.

The bonus was to commemorate the New Management strategy of Lee Kun-hee the chairman and hit the operating profit for the October to December quarter, which Samsung said was likely to fall 6% compared to the same period last year, and 18% from the third quarter which was a record $7.8 billion.

Initial estimates on the street put the new bonus at nearly about $650 million, but the extent of the decline in profit reflects a bonus of close to $1 billion. That amounts to a bonus of approximately $4,000 for each of the 240,000 employees.

Because of the bonus, the profit for the fourth quarter is expected to fall below the lowest forecast amongst analysts of 8.8 trillion won, which is the lowest since the second quarter of 2012 when profit was 8.1 trillion won.

Like the majority of companies in South Korea, Samsung has kept a low dividend yield at about 1% or even less, which is the biggest reason its shares are not as valuable as some peers are around the global.

Shares at Samsung experienced their first decline annually during 2013 in over five years due in part to the conservative return policy for shareholders at the company. This came despite operating profit most likely increasing by over 28% to $36.8 trillion won.

Shares were down in Asia on Tuesday by 0.2%, while the broader market was up by 0.3%.

Returns have been around 5.1% of profits, which is the lowest since Samsung purchased back some shares in 2007, when its rate of return has been 15.8%.

Lee took control of Samsung in 1987 from the original founder, his father. In 1993, he ordered his top executives to change everything, with the exception of your wife and children to transform the company from a television set maker to a global leader in technology.

Filed Under: Business, Headlines

Facebook in Court Over Alleged Scanning of Messages

January 3, 2014 By Nancy Young Leave a Comment

Facebook is now facing a class action suit over more allegations that it has monitored users’ private messages. The lawsuit alleges that when users send another website’s link by means of a private message, Facebook scans it in order to profile the web activity of the sender.

The suit also alleges that Facebook intercepts messages on a systematic basis to store user data and in turn profits by sharing that data with data aggregators, marketers and advertisers.

The social media site has called the allegations without merit. The site added that it would defend itself vigorously.

The lawsuit is requesting the greater of $100 a day for each day the alleged violations occurred or $10,000 each for users that were affected.

The lawsuit, which was filed early in the week, cites research that it says found that Facebook reviews the contents of private messages of its users for purposes unrelated to the ease of message transmission.

The suit says users believe they are communicating on a social service free of surveillance and likely will reveal facts about themselves or others that would not otherwise be revealed if the content were known to be monitored.

In other words, said the suit, Facebook is positioned to acquire parts of the profiles of its users that likely are not available to other data collectors.

However, some have come forward and defended Facebook. One security expert wrote in one of this blogs that if Facebook did not examine links that users shared privately Facebook would not be carrying out its duty to care for its users.

The expert said if the links are not properly checked and scanned there is a real risk that scams, span, malicious URLs and phishing attacks could infect the computers of recipients with their malware.

Facebook has received criticism for its policies on privacy. Last year in September, it faced harsh criticism over its proposed change to a privacy policy in which would ads to be created by using photos and names of users on Facebook.

Facebook claimed the proposal only clarified the language of the privacy policy and did not make material changes in it.

Filed Under: Business

Google Says No More to Rap Genius

December 27, 2013 By Nancy Young Leave a Comment

Rap Genius the popular lyrics website was banished from Google due to breaching the rules of the search engine on incentivized reciprocal links. However, the bosses on the site currently are in discussion with the web search giant in an attempt to have their pages relisted in search results on Google.

It came to light that Rap Genius not longer was appearing in searches on Google yesterday and as online speculation started to increase as to why the pages might have been taken off the search engine, which would account for a large portion of the overall traffic on the site, reps from the site admitted they erred.

The problem appears to be a recently announced blog affiliate program. One blogger made an enquiry about the new program, promoted on the Facebook page of the site and was given the response that if he were to include links to lyrics by Justin Bieber stored on the platform of Rap Genius in his blogs, then Rap Genius would sent a promotional tweet out about his site.

That blogger posted the exchange of emails he had with Rap Genius on his own site.

Due to the way the search engine on Google works, if enough bloggers were linked through to Bieber lines on the platform of Rap Genius using the correct keywords, the Bieber pages on the Rap Genius site would rate as higher for anyone that Googled the young retired pop artist. That would mean Rap Genius would be driven more traffic.

However, Google does not like it when websites play its search system that way. It therefore responded in quick and severe fashion as soon as they were aware of the ruse by Rap Genius.

As a plus for them, the bosses on Rap Genius did admit they had erred, but did insist they had thought the affiliate program was ok because links would just occur in posts that were artist relevant and no money changed hands.

The Rap Genius bosses also added they were quite certain that competitors on other lyric sites were carrying out things that violated the rules of Google to even a larger extent.

Filed Under: Business

Protest Did Not Cost Fast Food Employee

December 6, 2013 By Nancy Young Leave a Comment

On Thursday, cashier Karina McClain did not work on her shift at a New York City Checkers. Instead, McClain, 22, joined nearly 100 others outside of a Wendy’s restaurant in Brooklyn calling for an increase in wages to $15 per hour.

McClain said that she has bills she has to pay and is not paid enough money. She currently earns $7.25 per hour, which is the federal minimum wage and only works for 20 hours per week.

Missing a day’s income would hurt McClain, who has a hard time paying for her daughter’s diapers and clothes.

However, Thursday McClain could afford to miss her shift since organizers of the protests compensated workers who did not work.

McClain said the groups that are backed by unions such as Fight for 15 and Fast Food Forward, were giving her close to $50 or the equivalent of her daily wage for her to protest.

McClain said that if the group had not paid her to be there, she would not have been able to afford to protest.

Other people at the protest along with others around the country confirmed they too were being paid amounts that were similar. Organizers said the workers such as McClain had gathered in 100 different cities on Thursday making demands that were similar.

The movement started with a small fast food employee walkout in November of 2012 in New York City. It has since increased with strikes in August that attracted workers form the fast food industry in 60 cities.

The group leading the Fast Food Forward movement is compensating the workers who did not work their shifts on Thursday so they could participate in a protest.

The money used to pay the workers is from a strike fund that has the support of foundations, grassroots organizations and labor unions.

Unions have organized similar funds for strikes for many years in order to make up for lost wages, while standing up to their employers.

The average pay for a fast food employee across the country is approximately $9 per hour or close to $18,500 annually. That amount is nearly $4,500 less than the poverty threshold level from the Census Bureau of $23,000.

Filed Under: Business, Headlines

Toyota Nearing Record Profit

November 16, 2013 By Leave a Comment

Toyota Motor Corp increased its forecast for annual profit on Wednesday, closing in on new records that had been set prior to the financial crisis thanks to a weaker yen and growing sales in the U.S. car market that helped boost earnings sharply.

The bestselling automaker in the world now says it expects a net profit of $16.95 (1.67 trillion yen) billion for its fiscal year ending March 2014, compared to its forecast previously of 1.48 trillion yen.

That would put it just short of its previous record of 1.72 trillion yen in net profit for the fiscal year ended March 2008. That compares to an average forecast by analysts of 1.79 trillion yen.

The Japanese carmaker is the most reliant on exports amongst the three biggest automakers in Japan. It has benefited from the weakening yen that helped boost profits both from its exports and from the conversion of money earned overseas back into its local currency.

The automaker also increased its sales forecast for the U.S. from 2.61 million vehicles to 2.63 million, which will help offset a fall in its sales in Asia that it forecast to be 1.64 million after an original amount of 1.70 million.

The consolidated sales total globally, excluding sales in China, was not changed from its original 9.1 million.

Sales in Thailand were very weak, dropping by 30% during the quarter from ending September 30, as the market began to slow after incentives for first time clients ended in 2013. Thailand is the fourth largest market for Toyota on a per country basis.

Toyota increased its annual outlook for capital expenditure by 2% to 940 billion yen, which was close to 4% of overall revenue. It also kept its forecasted expenses for R&D the same at 900 billion yen.

During the quarter ending September 30, the largest carmaker in the world said its net profit increased by 70%, which was in line with Wall Street analysts.

Its net profit for the quarter was higher than rivals Nissan and Honda, the second and third largest Japanese carmakers respectively.

Filed Under: Business, Headlines

Venezuelan Government Seizes Electronics Stores

November 13, 2013 By Kenneth Scott Leave a Comment

On Friday, the government of Venezuela seized control of a chain appliance stores that stretched across the country.

Shoppers started hearing on Friday that President Nicolas Maduro had ordered the stores seized to sell electronics at less expensive prices. By midnight on Friday, hundreds of shoppers were amassing outside the stores waiting for the doors to open.

Price inspectors from the government said they had found evidence that usury was taking place and Maduro ordered the occupation of the stores.

In a Friday night televised address, the president said he would reopen the seized stores on Saturday and unload the plasma TVs, washing machines and other electronics at prices that were fair to the public.

He told the citizens of his country to leave nothing on the store shelves or in the store warehouses.

The out of control inflation in the country, which is at 54% is causing problems across all families in the biggest oil producer in South America. Last Wednesday, Maduro tightened currency transaction controls.

With municipal elections coming up in December, Maduro also ordered his military to shutter businesses that were hoarding products and speculating prices. In just their second day, inspectors took control of two Daka stores.

By nightfall, the military, some with assault rifles, helped to control order outside the seized stores by giving numbers to shoppers as they formed lines that went around the block.

Prices of products had skyrocketed to over $8,500 for a plasma television, when the same product was available on the black market for only $1,000.

The owners of the stores seized have not responded to the government’s accusations or the seizing of their stores. Reports were that the owners did not live in Venezuela but in Miami.

Even Maduro’s opponents expressed some sympathy for the effort he was putting in for price gouging by the private sector.

One woman watching the activity around the store does not agree with the current government in general, but said that she does not like it when she and her fellow Venezuelans are abused by businesses and their high prices.

The upcoming municipal elections are turning out to be more of a referendum on the controversial seven months that Maduro has been president and his rocky rule.

Filed Under: Business, Headlines

Ex-Examiner for Fed Says Firing Caused by Goldman Sachs Findings

October 11, 2013 By Deborah Campbell Leave a Comment

A former Federal Reserve senior bank examiner has sued her former employer. She claims she was fired due to her refusal to change her findings that the financial institute Goldman Sachs Group did not have a conflict of interest policy firm wide.

The former examiner, Carmen Segarra who is 41, said in her lawsuit filed on Thursday that she had examined the compliance and legal divisions for Goldman Sachs during late 2011 and the beginning of 2012. She said she found that the bank did not have a policy conforming to banking regulations set down by the Fed. She alleges the Fed fired her due to her refusing to withdraw those findings.

Michael Silva was the relationship manager for the Fed dealing with Goldman Sachs and has been named as one of the defendants in the lawsuit.

Segarra said her former employer possessed information that could cause Goldman Sachs harm.

Segarra in her complaint cites different emails with Silva where she argued that there was not firm wide policy at Goldman Sachs, while Silva accuses Segarra of telling him Goldman Sachs did not have any policy at all.

Segarra, in addition to her suit against the New York Fed, has sued Michael Kolb, Silva’s deputy and her supervisor Johnathon Kim.

A New York Fed spokesman, Jack Gutt said in a statement that was emailed on Thursday that the Fed could not discuss Goldman Sachs or Segarra due to rules of confidentiality.

Goldman Sachs spokesman Andrew Williams said that the company knows of no internal discussions at the Fed or the matters Segarra had raised.

Linda Stengle and lawyer for Segarra said on Thursday that her client was part of a group of examiners the New York Fed hired in 2011.

Filed Under: Business

Economic Unbalances in Ukraine Worries World Bank

October 7, 2013 By Deborah Campbell Leave a Comment

Ukraine lawmakers must act in a very quick fashion to correct the countries imbalance in the economy that threaten to widen the current account and budget deficits beyond the control of the government, said the World Bank.

The lender, based in Washington, said Ukraine must allow more flexibility in currency exchange rates and end the gas-price subsidies to qualify for bailout funds from international lenders.

The international lender lowered its estimate for the 2013 economic growth for Ukraine from 1% to zero.

At present, Ukraine is in a struggle with a shrinking economy, contracting foreign reserves, a widening gap on current accounts and trade restrictions from neighbor Russia, its largest market for exports.

By delaying an overhaul to the economy until past the presidential elections scheduled for 2015, would make the changes at that time even more difficult and eventual recovery slower, said the international lender.

Ukraine’s bonds from the government due in 2014 fell, pushing the bond yield to over 15.1%, the highest it has been in over a week.

On September 20, Moody’s Investors Service downgraded the debt rating for Ukraine by a full level to Caa1. That level is seven below investment grade. The service cited increasing economic and political risks due to relations deteriorating with Russia, low reserves in the central bank and no progress on a possible bailout from the IMF.

The reserves in the central bank are sitting at a low of seven years of just $21.7 billion as of the end of August. That is down by over $8 billion form just last year.

Policymakers have had to dip into the fund to support country’s currency the hryvnia. The balance is lower than the prices of three months of imports, which is a threshold many economists deem as important to keep financial stability.

Filed Under: Business, Headlines

WhiteWave Foods (NYSE:WWAV) Up On Ratings Upgrade

July 1, 2013 By Karen Jackson Leave a Comment

WhiteWave Foods  (NYSE:WWAV)  is up 8% at the midday  trading hour after Morgan Stanley analyst Matthew Granger upgraded its rating from equal weight to overweight and reaffirmed its $19 a share price target.

Morgan Stanley noted, “WhiteWave offers best-in-class mid-term growth targets (6-7% sales, 12-15% EBIT), driven by its concentrated portfolio of brands in high-growth Food categories (plant-based beverages, coffee creamers, organic dairy).

Recent topline growth has reached double-digits on the strength of successful innovation, but the pace should moderate going forward.

WhiteWave Foods  (NYSE:WWAV) shares closed Friday at $16.25 per share. The WhiteWave Foods Company engages in the manufacture, marketing, distribution, and sale of plant-based foods and beverages, coffee creamers and beverages, and dairy products in North America and Europe.

Filed Under: Business

Mannkind Corporation (NASDAQ:MNKD) Shares Rebounding?

June 19, 2013 By Karen Jackson Leave a Comment

Mannkind Corporation (NASDAQ:MNKD) shares surged by more than 9% today after analysts praised the company’s insulin drug Afrezza.

Mannkind dropped 12% yesterday after it was revealed a competitor, Biodel Inc. (NASDAQ:BIOD) , was moving along with other insulin medications for treatment of diabetes.

Today analyst Keith Markey of Griffin Securities said , “We think the selloff was a mistake — Afrezza is the better drug,”

As a result Mannkind Corporation (NASDAQ:MNKD) shares are up today nearly 8% as it tries to regain yesterdays losses. Meanwhile Biodel Inc (NASDAQ:BIOD) gave back all it gains from yesterday

About Mannkind Corporation

Mannkind Corporation (NASDAQ:MNKD) is a development-stage biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases such as diabetics and cancer.

Filed Under: Business

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