TOP NEWS: Economy: August 28th, 2012
- Social Security’s Woes Are Worse Than You Think
- Banks ready to claw back more bonuses
- Wall Street’s Singer Makes Political Influence Felt
- When CEOs earn more than Uncle Sam, system is broken
- Samsung Case Puts Apple Closer to Google Fight
Excerpts and More Top Stories
FEDERAL/SOCIAL SECURITY: Social Security’s Woes Are Worse Than You Think - BLOOMBERG, OP-ED
Ramesh Ponnuru: While the Romney and Obama camps have made increasingly bitter accusations about each other’s plans for Medicare, a bipartisan consensus on entitlements has emerged in the past few years. Too bad that consensus is wrong.
FEDERAL/CONTRACTORS: Lessons from government contractors: bid more, and smarter – WP
A new survey shows significant behavioral differences between successful and less active government contractors.
FEDERAL/NATIONAL DEBT: Counting the Debt - NEW YORKER, OP-ED, Amy Davidson
One fears that the national-debt clock is poised to become a convention cliché.
BANKING/CLAWBACKS: Banks ready to claw back more bonuses - FT
Far from a bumper year for paying bank bonuses, 2012 is gearing up to be a bumper year for clawing them back, prompted by a spate of recent scandals
BANKING/LIBOR: Libor’s Trillion-Dollar Question - BLOOMBERG, EDITORIAL
The global investigation into the manipulation of Libor has so far done a good job of exposing how bankers corrupted one of the world’s most important financial indicators. Now authorities need to take a giant step further.
BANKING/BofA: Paulson to Talk With BofA Investors - WSJ
Advisers and clients get chance to question the struggling hedge-fund manager.
BANKING: Knight Capital Picks Three New Directors – WSJ
The brokerage firm has selected three new directors, including the chief executive of TD Ameritrade, three weeks after receiving a lifeline from outside investors.
WALL STREET/POLITICAL DONATIONS: Wall Street’s Singer Makes Political Influence Felt - WSJ
Paul Singer has given more to the GOP and its candidates–$2.3 million this election season–than anyone else on Wall Street, helping make his hedge fund one of the nation’s biggest sources of political donations.
WALL STREET: Wall Street’s Leadership Vacuum – BUSINESSWEEK, OP-ED, Dawn Kopecki
Wall Street, still reeling from public outrage and increased regulation, is in search of a new senior statesman.
TAXES: When firms pay CEOs more than Uncle Sam, the tax system is broken – LAT, OP-ED, David Lazarus
Corporations lobbied hard for their tax breaks and loopholes — which they enjoy at other taxpayers’ expense. It’s time for reforms.
TAXES/MANUFACTURING: Manufacturers Seek Tax Overhaul - WSJ
While politicians have offered ideas for job creation, many manufacturers wish Washington would concentrate on lower and simpler taxes, improved roads and other infrastructure, and better education.
APPLE/SAMSUNG: Samsung Case Puts Apple Closer to Google Fight - NYT
CLAIRE CAIN MILLER, BRIAN X. CHEN: By making its own hardware, Google could end up more squarely in Apple’s sights. The jury’s findings in the case could potentially force Google to adjust its software, too.
APPLE SAMSUNG: Samsung Vows to Fight Ban – WSJ
Samsung Electronics said Tuesday it would fight Apple Inc.’s attempt to ban the sale of some of its smartphones in the U.S. with “all necessary measures.”
*MORE APPLE/SAMSUNG BELOW
ECONOMIC RECOVERY: America is waiting for the recovery - CHICAGOTRIB., EDITORIAL
As Congress and the White House dawdle, the worst recovery since the Great Depression plods on.
INVESTING: Why women VCs shouldn’t care about the Silicon Valley stereotype - WP
The Silicon Valley tech stereotype is fixed, and not one that plays favorably to women. Here’s why they shouldn’t care.
INVESTING: Far From Wall Street and Silicon Valley, a Focus on Family Ties – NYT, OP-ED
When the hedge fund manager David Einhorn was just another investment analyst in the mid-1990s, his family gave him $500,000 to get his fund, Greenlight Capital, off the ground. Now that he is a billionaire after a career of doing battle with large corporations, he has returned the favor.
INVESTING: Risky Business: Fund Backs Filmmaker - WSJ
A legal battle for control over hedge funds run by Fletcher Asset Management has exposed the firm’s investment in the movie career of the founder’s brother.
ENERGY PRICES: Gasoline Rises as Refineries Close - WSJ
U.S. gasoline futures rose while crude-oil prices fell, as refineries along the Gulf Coast began to shut down ahead of Tropical Storm Isaac–and fuel traders braced for the possibility of gasoline shortages.
ENERGY PRICES: US hurricane threat raises petrol prices - FT
Petrol prices rise as tropical storm Isaac enters energy-rich Gulf of Mexico, forcing several companies to shut down oil and natural gas production
GOLD STANDARD: Gold standard or dollar standard? - FT, OP-ED
Old logic of [No QE] = [case against gold] = [dollar-positive situation] no longer seems applicable
GOLD STANDARD: Ten Reasons You Should Support the “Gold Commission” - FORBES, OP-ED, Charles Kadlec
The Republican Party Platform’s call for the creation of a commission to evaluate restoring the link between the dollar and gold may prove to be the biggest upside surprise of the 2012 Presidential contest.
COMMODITIES/FARMING: Cotton Could Lose Area to Corn in U.S. - WSJ
Record high prices of corn and soybeans could trigger changes in crop plantings in the U.S., with the two commodities set to gain acreage at the expense of cotton, an agricultural economist said.
RAILWAYS/LABOR: Labor Rules Snarl U.S. Commuter Trains – BLOOMBERG, OP-ED
For the past 50 years, progress has eluded passenger rail in the U.S. While unions and management squabble over wages and benefits, AND the overarching issue of labor productivity remains unresolved.
MANUFACTURING/AIRLINES: Boeing Expands Dreamliner Assembly – WSJ
Boeing has activated a third assembly line for its 787 Dreamliner at its factory in Everett, Wash., a step toward advancing the jet’s production rate to 10 each month by the end of 2013.
LUXURY SALES: Tiffany Cuts Outlook Amid Weak Sales – WSJ
Tiffany’s second-quarter earnings edged up 2%, as the high-end jewelry retailer continued to struggle with weak sales amid a global economic slump.
LUXURY EXPORTS: Ford Steers Lincoln to Wealthy Chinese – WSJ
Ford is setting its sights on the fast-growing but increasingly crowded Chinese market for luxury cars with a plan to begin selling its Lincolns in the country beginning in 2014.
BUSINESS/AIRLINES: Airlines and the ineluctable middlemen - ECONOMIST
A look at airline profits and why it is that so many companies in airline-related industries are able to make good money, when the carriers themselves struggle to do so.
BUSINESS/BEST BUY: Schulze Cleared for Best Buy Bid - WSJ
Best Buy reached an agreement with founder Richard Schulze to allow him access to financial information so he can pursue his buyout of the struggling consumer-electronics chain.
BUSINESS/CARS: GM Curbs Volt Production – WSJ
General Motors plans to suspend production of its battery-powered Chevrolet Volt for 26 days beginning in September as part of a move to pare excess inventory of the about $40,000 vehicle.
BUSINESS/DISNEY: Disney Sees Success as More Than Blip - WSJ
With the success of the superhero film “The Avengers” and record theme-park turnout in recent months, Disney’s long-term investments have allowed it to sail through the summer.
BUSINESS/ENERGY: Chevron Cash Fuels Deal Talk - WSJ
Chevron is hoarding the money it makes from oil and gas operations, prompting investors to wonder if the energy giant is bracing for a spike in costs or will use its $21 billion cash pile to buy a smaller rival.
BUSINESS/AOL: AOL reveals how it will return $1.1B to shareholders – WP
AOL said in April that it would give proceeds of its patent sale to Microsoft back to its shareholders.
BUSINESS/ELECTRONICS: Lexmark to Exit Inkjet Business - WSJ
Lexmark said it will no longer develop or manufacture business inkjet hardware, a move that will involve eliminating about 1,700 positions, or roughly 13% of its workforce.
TECHNOLOGY: Active in Cloud, Amazon Reshapes Computing - NYT
Amazon is quietly upending the world of business computing through its cloud operations, a vast resource that gives companies heavy computing power without the baseline costs.
TECHNOLOGY: Smartphones Challenge Chip Limits – WSJ
Smartphones and other devices keep getting smarter, but that may change if a key step in manufacturing computer chips isn’t updated soon.
TECHNOLOGY: I.B.M. Mainframe Evolves to Serve the Digital World - NYT
Executives said the company’s new line of mainframe computers can tackle any trend in corporate computing, from the cloud to so-called green computing.
TECHNOLOGY: Samsung unveils Galaxy Player 5.8 – WP
The company adds to its Player lineup for listening to music, watching videos, and playing Android games and apps.
TECHNOLOGY: Dropbox adds two-step verification to make your account more secure – WP
Users will need two proofs of identity, such as their password and a code sent to their phone.
*MORE APPLE/SAMSUNG STORIES
INNOVATION: Apple Case Muddies the Future of Innovations - NYT, OPINION, NICK WINGFIELD
For companies that emphasize distinctive design, the Samsung patent verdict was a validation of their efforts.
VERDICT AFTERMATH: Apple win sends waves through techs – FT
Samsung and Google shares fall after US court verdict on fears for forced redesign, while Nokia and Microsoft enjoy boost
CONSUMERS: Who Really Lost the Apple vs. Samsung Case? You Did – SLATE via RCM
Matthew Yglesias: The patent verdict is great news for Microsoft, Nokia, and Research in Motion but bad news for telecoms and you.
AFTERMATH: Smartphone makers in a ‘pinch’ – WP
Friday’s ruling for Apple upheld patents for the “pinch to zoom” finger maneuver, clouding the future of the gesture for anyone inclined to buy mobile devices from other companies.
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