Archive for the ‘Business’ Category

“Offshore wind power is not affordable” – KPMG

November 15, 2011
Any Old Wind That Blows

There are some simple and rather obvious matters that the “green” lobbies prefer to ignore.

  1. In spite of twenty years of subsidies wind power is still not commercially viable without subsidy. Solar thermal power plants enjoy feed in tariffs some 3 times higher than the cost of conventional fossil power generation. Wherever renewables have been used to any extent, electricity prices for the consumer have increased.
  2. Intermittent sources of power (which cease when the wind does not blow, or blows too hard or when the sun does not shine at night or when clouds appear) are – by definition – unreliable. They do not add to the reliable, base-load, generating capacity that any electricity grid requires and must be backed up.  In Scotland for example – as Professor Colin McInnes points out – wind power capacity now exceeds nuclear capacity but only produces about one-third of the energy.
  3. Electricity is energy in motion and cannot be stored as electricity. For any electrical grid, at any instant, generation must, perforce, equal demand – and pumped storage schemes are merely devices to try and ensure such balance. Since the outages of wind and solar power are unpredictable (though it is generally predictable that solar power will not be available at night), and cannot be relied on to meet load demand fluctuations, “balancing power” (usually from gas turbines) must be arranged for whenever wind or solar capacity is added.
  4. In addition to the direct subsidies, whenever wind or solar power is available at times when there is low load, the subsidised regime forces the turning-down of other capacity – to the detriment of that capacity – and adds to the total cost of the grid.
Now – finally – some of the real numbers are beginning to be acknowledged but not, of course, by the green lobbies. KPMG has produced a new report “Thinking about the Affordable” and Power Engineering International reports that:
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Degradation of the elderly in Sweden’s privatised care system

November 11, 2011

The greatest fear I have of getting old is not so much the pain or suffering or sickness or debilitation but the degradation one may have to undergo.

I have always perceived the care of the elderly (and children) in Sweden as being perhaps the most compassionate and advanced in the world – especially the care from the public sector. The best care anywhere in the world is no doubt when it happens – and it does not always happen – within the family environment. In times past it was the care of the elderly within extended family groups, where up to 4 generations lived together, which probably provided the best care possible. But as family groups have become smaller, the wherewithal for the best geriatric care possible has shifted to institutions.

But recent events within the Swedish system where the public sector has been outsourcing geriatric care to private enterprise are not pretty.  In the chase for profit margins the level of degradation being meted out seems to have increased. The equation is no longer “the best care possible at the lowest allowable cost” and it seems instead to have become “not more than the cost absolutely necessary to avoid public complaints”. And in this new equation the level of degradation that the elderly are subjected to carries no weight. And the degradation is of relevance only if it leads to noisy complaints from others.

Something is not quite right and and it only reinforces my equating ageing with degradation.

The case of the private care company Carema has been the subject of a series of investigative articles by Dagens Nyheter and the latest episode of weighing diapers is not only degrading to the elderly patients but also, I think, for those being forced to implement Carema’s profit objectives:

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Nord Stream gas goes on-line today

November 8, 2011

The Russian gas pipeline bypassing all transit countries to Germany by being routed under the Baltic Sea goes live today.

RT: After 13 years of planning and two years of construction, the Nord Stream pipeline will deliver its first supplies of Russian gas to an estimated 26 million homes in the EU on Tuesday. 

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LSE Professor leaves in advance of critical Saif al-Islam Gaddafi report

November 1, 2011

David HeldDavid Held, who is currently Graham Wallas professor of political science at the LSE, has announced that he is leaving in January to take up a post at Durham University.

But he is leaving one step ahead of the reports on Saif al-Islam Gaddafi’s funding of research at the LSE. and one on charges of plagiarism in his PhD thesis.

According to the Guardian, Held said in a statement  “I will be taking up the positions of master of University College and chair of politics and international relations at the University of Durham from January. This move is being made for academic reasons and I look forward to the new avenues of research that this role will bring. I have many links to LSE which will be maintained in the years ahead.”

But Held who had very close links to

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Victor Muller and the millions he has extracted from Saab while it dies

October 27, 2011

Saab is on its last legs but it appears from an investigation conducted by Swedish Television (SVT) that Victor Muller has rewarded himself handsomely even while supplier bills have been unpaid. Muller has little substance in his history but a long track record of grand schemes and – it seems to me – very gullible investors. Employees in his various loss-making companies have continued in the false hopes that Muller is so good at building up. They would seem to have a misplaced loyalty to their brands but instead have actually been relying on an unreliable Muller.

SVT  (free translation):

SVT Report has investigated the complex transactions between Saab, Saab’s parent company and Victor Muller’s private companies. His compensation through bonuses, salary, equity, and professional fees add up to 18 million Kronor. This is at the same level as Leif Johansson the former CEO of Sweden’s largest company Volvo Trucks, where Volvo Trucks has about  90,000 employees while Saab has fewer than 3000 employees. 

Saab has also paid Victor Muller’s invoices even while supplier’s bills have remained unpaid. Saab’s annual report details consultancy fees of 4 million kronor including a bonus of 1.76 million to a company that Muller controls – Latin America Tug Holding registered on the island of Curacao in the Caribbean. …..  Saab’s parent company has paid consultancy fees of €550 000 and an additional bonus of €508,571, making a total of about 10 million kronor to Victor Muller. He has also received 120,000 shares that he has sold for nearly four million kronor.
Beyond that, Saab’s parent company has bought services from companies affiliated with Victor Muller for nearly seven million. Victor Muller also has very attractive interest rate agreements for the money his company has lent to Saab. The interest on loans is set at EURIBOR plus 6 -10 percent. This means that Saab could have paid him around 12per cent interest on the loans.
Swedish Television have not been able to reach Victor Muller.

Sucking blood from a dying company.

Related: https://ktwop.wordpress.com/2011/05/12/saab-being-pimped-around-the-world-by-victor-muller/

Murdoch swats aside shareholder calls for change

October 22, 2011

As expected the shareholder opposition to Rupert Murdoch and the Board of News Corp proved to be little more than noise and was just brushed aside at News Corp’s AGM held in Los Angeles yesterday. Some of the loudest “opposition” seems to be little more than public relations to justify a continued investment in News Corp and not really intended to effect any change.

Rupert Murdoch and kids

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Media touts Camping’s Rapture garbage again — and again it shall not come to pass

October 16, 2011

Harold Camping is at it again. (Or is he? –  it seems to be the media just highlighting a statement on his website and recycling his May 23rd interview rather than any thing more recent). After his predicted May 21st Rapture failed to appear (after his previous failed prediction for a September 6th 1994 Rapture), the 90 year-old is  now predicting the great day will be next week on Friday October 21st.

Christian Post: Harold Camping has predicted that the rapture will take place on Oct. 21, following his May 21 prediction failed to come to pass. He explained this by saying May 21 was just the spiritual rapture, and the physical rapture would soon follow in October. … When describing the rapture prior to May 21, Camping spoke about a great earthquake “such as was not since men were upon the earth, so mighty an earthquake, and so great.” He then said that those “who survive this terrible earthquake will exist in a world of horror and chaos beyond description. Each day people will die until Oct. 21, 2011, when God will completely destroy this earth and its surviving inhabitants.”

I suppose the Christian Post improves its circulation numbers by publishing this rubbish in addition to their usual nonsense.

But I note that the Family Radio websites themselves are just carrying a few lines which read:

But that universal judgment will not be physically seen until the last day of the five month judgment period, on October 21, 2011. ….. Thus we can be sure that the whole world, with the exception of those who are presently saved (the elect), are under the judgment of God, and will be annihilated together with the whole physical world on October 21, 2011, ….. 

Nevertheless, somebody must be making lots of money from this garbage. Camping is probably senile and apparently he suffered a stroke after the 21st May prediction (which was no debacle considering the amount of interest and money that was raised). But he is surely surrounded by those who are now intent on capitalising on the “Rapture brand” for whatever it is worth even if returns must be diminishing. The money for his Family Radio organisation comes primarily from milking the gullible and the suicidal and the weak-minded.

Newsvine: Amidst all of these predictions, Harold Camping has been profiting quite resoundingly.  The 2009 IRS filings from Family Radio, his radio network, indicated that it had over $104 million in assets.  And those profits aren’t all going toward Christian causes, like helping the needy or setting up missions.  Around $34 million of those assets are tied up in investments.  Harold Camping and Family Radio are profiting from these phony predictions, making money through their efforts to drum up fear.

Apparently in May, Camping and his followers spent a lot of money – though the numbers don’t quite add up:

The Guardian: Camping and his followers spent more than $100m worldwide on billboards and posters, financed by the sale and swap of radio stations. Advertising popped up across America and the globe from Iraq to Lebanon to Israel to Jordan, the Philippines to Vietnam, where thousands of the Hmong ethnic hill tribe gathered together on the Thai border in anticipation of the event. The campaign was backed up by Camping’s radio show. …. There has been a mini-boom in firms and individuals offering to look after the pets of those who believed they were about to be raptured. Eternal Earth-Bound Pets, set up by New Hampshire atheist Bart Centre, has about 250 clients who paid $135 (£83) for insurance policies that guarantee Centre and others will care for their animals when they ascend. Others paid out to sign up with websites that would send out farewell letters to friends and relations left behind.

But it all makes a lot of sense if one removes religion from the equation.

This is all just entertainment and the making of money from a serial radio show which is coming to the end of its natural life. It has been running since 1992 and no matter what one may say – it has had a very good run. The producer’s task is now to milk the “rapture” show until it is deserted by its listeners and has to be taken off the air. And if a few disturbed people give away all their belongings or kill off their animals or even commit suicide; so be it – it only strengthens the “brand”.

Rupert Murdoch faces opposition – but no real threat – from News Corp minority shareholders

October 14, 2011

Rupert Murdoch and his family members have about 44% of the voting shares in News Corp and his good friend Saudi  Prince Alwaleed bin Talal owns the second largest voting block with about 7% and this gives Murdoch effective control over the composition of the Board and all decisions.

But the smaller shareholders who have been grumbling for some time are beginning to get noisy and even showing signs of resistance.

But the minorities are not rolling over. Their biggest gripe is the “rampant nepotism” in the company, and it is here that Murdoch may eventually have to give ground. ….. Even before the (hacking) crisis, small News Corp shareholders had launched a lawsuit against its “rampant nepotism” for paying £415m for Shine, a television production company founded by Rupert Murdoch’s daughter, Elisabeth.

Reuters reports that at New Corp’s Annual General Meeting in a weeks time, the opposition to Murdoch will be on display:

Rupert Murdoch’s multi-million dollar campaign to win back the hearts and minds of News Corporation’s independent investors suffered a new blow on Friday after another key shareholder group called for his eviction from its board.

Hermes Equity Ownership Services (HEOS), the shareholder advisory service affiliated to Britain’s largest pension fund, issued a rallying cry to investors to vote against all Murdoch family re-elections to the board of the embattled media group at next week’s annual general meeting on October 21. …..

…. The organization, which votes on behalf of the BT Pension Fund and more than 20 other institutional clients running $140 billion of assets, has also called for an independent investigation into the phone hacking scandal that led to the closure of top-selling British tabloid The News of the World….. “The time is right for the company to appoint an independent chairman to rebuild trust, help correct the governance discount, and ensure that the interests of all investors are properly represented,” Jennifer Walmsley, Director of Hermes Equity Ownership Services, said.

Besides seeking the removal of Murdoch and sons James and Lachlan, HEOS — whose members hold 0.5 percent of News Corp’s shares — Hermes is also withholding support for the re-election of directors Arthur Siskind and Andrew Knight, citing concerns for their independence. …… Earlier this week, Institutional Shareholder Services Inc. (ISS) said Murdoch and 10 other News Corp directors should be ousted from board in the wake of the phone hacking scandal, which it said “laid bare a striking lack of stewardship and independence.” 

The ISS statement prompted News Corp, which has bought back more than $1 billion of its stock since August, to step up its appeal for shareholder support with a letter that reiterated its strong financial performance in the face of the flagging global economy.

… “There is a huge problem with shareholder democracy at News Corp — it breaches what we see as a fundamental shareholder right of ‘one share, one vote’,” (Walmsley) said.

But 51% of the voting shares is a clear controlling interest no matter which way you look at it and no matter how loud one may shout for “one share one vote”. It will be difficult to overcome and minority shareholders who are truly upset may have no other option than to vote with their feet. HEOS with its 0.5% can make noise but cannot really do much else. Murdoch is canny enough to make sure that won’t happen. He just needs to ensure they get an attractive return even if the “Murdoch” discount holds back the share value. So my expectation is a lot of noise but no real change. Perhaps James Murdoch will give up one of his Board positions just to placate the noisiest opposition.

Now Murdoch’s WSJ caught in a circulation scam as his European publishing head resigns

October 12, 2011

It’s pretty clear that The Guardian does not much care for Rupert Murdoch or his newspapers but they are involved in so much which is shady that it provides permanent employment for some of The Guardian’s “investigative journalists” (who are not themselves above some hanky panky from time to time).

After the News of the World / News International phone hacking fiasco, this time it is the Wall Street Journal which has been found to have been cooking the books about its circulation figures. Andrew Langhoff  who is Murdoch’s publishing head in Europe has resigned to contain the damge. Executive Learning Partnership, or ELP, a Netherlands-based consulting firm is also implicated.

The Wall Street Journal also carries the story: Publisher of WSJ Europe Resigns After Ethics Inquiry

The Guardian – 

One of Rupert Murdoch’s most senior European executives has resigned following Guardian inquiries about a circulation scam at News Corporation’s flagship newspaper, the Wall Street Journal.

The Guardian found evidence that the Journal had been channelling money through European companies in order to secretly buy thousands of copies of its own paper at a knock-down rate, misleading readers and advertisers about the Journal’s true circulation.

The bizarre scheme included a formal, written contract in which the Journal persuaded one company to co-operate by agreeing to publish articles that promoted its activities, a move which led some staff to accuse the paper’s management of violating journalistic ethics and jeopardising its treasured reputation for editorial quality.

Internal emails and documents suggest the scam was promoted by Andrew Langhoff, the European managing director of the Journal’s parent company, Dow Jones and Co, which was bought by Rupert Murdoch’s News Corporation in July 2007. Langhoff resigned on Tuesday.

…… In what appears to have been a damage limitation exercise following the Guardian’s inquiries, Langhoff resigned on Tuesday, citing only the complaints of unethical interference in editorial coverage. Neither he nor an article published last night in the Wall Street Journal made any reference to the circulation scam nor to the fact that the senior management of Dow Jones in New York failed to act when they were alerted last year.

The affair will add weight to the fears of shareholders in Murdoch’s parent company, NewsCorp, that the business has become a ‘rogue corporation’, operating outside normal rules. Some shareholders have launched a legal action in the US, attacking the Murdoch family after the phone-hacking scandal at the News of the World and following lawsuits in which NewsCorp subsidiaries have been accused of hacking into competitors’ computers and stealing their customers. …..

……

Circulation figures directly affect the advertising rates that can be charged and this circulation scam is nothing more than a method to defraud advertisers and – eventually – all the subscribers. Even the antics at the News of the World can be put down to maintaining circulation numbers. The certainly unethical – and perhaps criminal – behaviour of Murdoch and his henchmen and his newspapers can all be put down to greed, and a touch of narcissism  coupled with highly inflated egos.

Related: Rebekah Brooks and NoW – another new low

Raytheon Polar Services and NSF refuse to evacuate stroke victim from US South Pole station

October 12, 2011
The Amundsen-Scott South Pole Station, photogr...

Amundsen-Scott South Pole Station in 2006: Image via Wikipedia

The manager of the US South Pole Station suffered a stroke a month ago and the physician at the U.S.-run Amundsen-Scott South Pole Station recommended her immediate evacuation. But the station run by Raytheon Polar Services for the NSF have hired consulting doctors to disagree and have declined to evacuate her. Technical difficulties and budget constraints apparently!!

(I would not be surprised if the cost of the consulting doctors would have gone a long way towards bearing the cost of the evacuation!).

Discovery News:

The manager of the U.S. South Pole station wants to be evacuated, saying she suffered a stroke more than a month ago. But U.S. polar officials say she’ll have to wait until special ski-equipped airplanes can land at the frozen base several weeks from now.

The dispute between site manager Renee-Nicole Douceur, the National Science Foundation and the operator of the base, Raytheon Polar Services, has been simmering since Douceur said she suffered a stroke on Aug. 27. The physician at the U.S.-run Amundsen-Scott South Pole Station recommended her immediate evacuation. But consulting doctors hired by Raytheon and the NSF disagreed.

… In a phone interview with Discovery News, Douceur said she suffers from blurry vision and is worried about long-term effects to her health. She says she can’t wait another few weeks. 

“I’m just hanging in there and I’m looking out my window and it’s nice and clear bright and sunny,” Douceur said. I’m saying to myself why isn’t there a plane here to get me out of here today or even yesterday?” …..

…. “I have not been treated fairly here,” Douceur said. “They have been making decisions based on budgets. Isn’t a stroke a serious thing?” ……

Douceur’s family has set up a website to gain support for her cause and enlisted the aid of U.S. Sen. Jean Shaheen, D-N.H. She’s also hired an attorney to help her plead her case. With a bit of luck she should now be evacuated on October 17th but bad weather could delay this to November.

Sounds incredibly callous from the NSF but perhaps not too surprising from Raytheon …..?