Your View contributor Abbas Atilay took us to the remote Khinulag village in Azerbaijan this week with his beautiful images of life in the isolated location.
View this week’s Your View showcase here.
* Stock rises after hours
(Adds earnings details and background, comment, byline,
dateline; updates stock price)By Noel RandewichSAN FRANCISCO, Oct 18 (Reuters) - Intel Corp forecast
quarterly revenue above Wall Street’s expectations, defying
concerns that the growing popularity of tablets and a shaky
economy are eating into demand for personal computers.Intel shares moved sharply higher after the company beat
earnings expectations and said developing countries like China
are fueling demand and helping make up for slower growth in the
United States and Europe.Intel’s processors are used in 80 percent of the world’s
PCs but the company has failed to gain traction in increasingly
popular mobile gadgets like Apple Inc’s iPad and Google Inc’s
Android smartphones.Corporate information technology spending has held up in
recent quarters despite increasing economic uncertainty,
helping sales of Intel’s high-margin server chips. Tech
companies such as Facebook are also investing heavily to build
out the massive data centers.Data center sales for the world’s leading chipmaker rose 15
percent in the quarter. By comparison, sales of Intel’s Atom
mobile chips plummeted 32 percent.”We have all these data centers out there being built, the
companies aren’t buying traditional servers from Dell or HP,
but they are buying the chips and making their own servers,”
said Kevin Cassidy, an analyst at Stifel Nicolaus.Intel said revenue in the current quarter would be $14.7
billion, plus or minus $500 million. Analysts’ average forecast
is $14.23 billion, according to Thomson Reuters I/B/E/S.”Emerging markets are good, enterprise is strong, the
mature market consumer is a little bit weaker,” Chief Financial
Officer Stacy Smith told Reuters. “I’d say Europe was a little
bit weaker than the U.S.”Shares of Intel have risen about 11 percent this year,
outperforming the Nasdaq composite index, which has been flat.
Analysts recommending the company say it has been punished too
much for its lag in mobile computing and point to the stock’s
3.6 percent dividend yield.Intel’s GAAP net income in the third quarter was $3.5
billion, up 17 percent. Earnings per share were 65 cents.
Analysts on average had expected 61 cents.Intel said non-GAAP revenue in the third quarter was $14.3
billion, up 29 percent and higher than the $13.87 billion
expected on average by analysts, according to Thomson Reuters
I/B/E/S.Shares of Intel jumped 4.66 percent in extended trade after
closing up 0.52 percent at $23.40.
Evraz , a Russian steel producer part-owned by Roman
Abramovich, is set to take its place in the FTSE 100 in a move
that will compound the dominance of natural resource stocks in
London’s leading index.EQUITABLE LIFE GROUP ATTACKS UK TREASURYThousands of Equitable Life policyholders in Britain could
die before they receive compensation amid continuing government
“incompetence,” the mutual’s chief campaign group has warned.BUMI PULLS OUT OF INDONESIA DEALBumi , the mining investment vehicle founded by Nat
Rothschild, has pulled out of a $2 billion deal to raise its
stake in its Indonesian partner to 75 percent.The TelegraphBP PARTNER AGREES TO HELP WITH OIL SPILL COSTSAnadarko , one of BP’s partners involved in
the Gulf of Mexico oil spill, has agreed to pay $4 billion
towards clean-up costs and civil claims resulting from the
accident.G4S TO TAKEOVER MOVE FOR RIVAL ISSSecurity group G4S is set to become one of the
world’s largest private sector employers after agreeing a deal
to buy the cleaning and catering provider ISS for
5.2 billon pounds.BERLIN EXPERTS FEAR EURO BREAKUPPlans to increase the firepower of Europe’s bailout
machinery with extra leverage threaten France’s AAA rating and
risk setting off a dangerous chain of events, a top German
institute has warned.The GuardianIPHONE 4 SALES HEADING FOR NEW GADGET WORLD RECORDApple has sold more than 4 million of its new
iPhone 4S smartphones in just three days since its launch, with
handsets snapped up at a speed that is likely to set the record
for the world’s fastest selling consumer electronics gadget.The IndependentSACKED BOSS OF OLYMPUS PASSES PAPERS TO SFOMichael Woodford, the chief executive fired by Olympus
after just two weeks in the post, on Monday told the
company he “welcomed” their threats of legal action, as he
passed crucial documents to Britain’s Serious Fraud Office.
By Philip PullellaROME, Oct 13 (Reuters) - Italian Prime Minister Silvio
Berlusconi, fighting for his political life and seeking to quell
an internal rebellion in his centre-right coalition, will ask
parliament on Thursday for a confidence vote that will allow him
to continue governing.Berlusconi, who is under pressure by Italy’s president as
well as the central bank governor to prove that he can deal with
the country’s myriad social and economic problems, is due to
address the lower house at about 0900 GMT.The confidence vote is expected to be held sometime on
Friday and Berlusconi will most likely win.But most analysts say he will also emerge so bruised that it
will be only a matter of months before a new crisis hits and
that the country will likely hold early elections next year, a
year before they are next scheduled.”It’s either counter-attack or die,” said Il Foglio, a
political broadsheet which reflects Berlusconi’s thinking.In his address, Berlusconi is expected to stress that there
is no alternative to his government, that a crisis now would be
irresponsible at a time when the economy is under huge pressure
from the markets, and that he intends to govern until 2013.Opposition parties have already announced that they will
boycott the speech but then return for the debate and vote
against Berlusconi on Friday.Berlusconi decided to address parliament after the coalition
— wracked by internal dissent — suffered a major embarrassment
when it failed to pass a routine budget provision on Tuesday.A number of centre-right deputies were absent for the vote,
a fact which infuriated Berlusconi and fed suspicions that some
dissenters stayed away to send a message to the prime minister
about the deep malaise within the coalition.INTERNAL CHALLENGESBerlusconi is facing internal challenges from a number of
ministers who are unhappy with the way he is running the
coalition and the damage his personal and judicial woes have
done to Italy’s reputation.The prime minister, whose current government was elected in
2008, said that the loss of Tuesday’s vote was just an
“accident” and that there was no reason to resign as the
opposition has demanded.President Giorgio Napolitano entered the fray on Wednesday
when he issued a statement expressing deep concern about the
viability of government and demanding a “credible response” to
Italy’s problems.Italy is also under pressure from Mario Draghi, the outgoing
Bank of Italy governor who will become the president of the
European Central Bank next month.In a speech on Wednesday night, Draghi said Italy had
already wasted too much time without reforming its economy and
unless it acted urgently, rising bond yields could nullify the
benefits from recent budget cuts.Yields on Italian government bonds are dangerously high
considering its massive public debt, because of investors’ lack
of confidence that Berlusconi’s government can take decisive
action and worries over Italy’s chronically sluggish growth.Ratings agency Fitch last week cut Italy’s credit rating by
one notch with a negative outlook, following a downgrade by
Moody’s and Standard and Poor’s, underlining market concern over
the stability of its public finances and its weak growth.A 60-billion-euro austerity package to balance the budget by
2013 was passed last month only after weeks of hesitation and
delay, while the timetable for a decree to pass economic reforms
and approve the sale of state assets has slipped to Oct. 20.
The so-called “Medigap” insurance plans shield the elderly — many living on fixed incomes — from costly deductibles and other expenses not covered by the traditional fee-for-service Medicare healthcare program.”This one is clearly on the table,” said a lobbyist who has been following “super committee” deliberations on ways to trim federal budget deficits by at least $1.2 trillion over 10 years.But super committee Democrats are unlikely to vote to saddle retirees with new out-of-pocket expenses if Republicans refuse to embrace tax increases for the wealthy.While the elderly buy the private plans, studies suggest they boost government Medicare costs as the extra coverage for deductibles and co-pays encourages greater use of medical services. That, in turn, pushes up costs for Medicare, which has to pay for its portion of the care.As a result, proposals to limit the plans have been included in a number of deficit reduction packages, including one proposed by President Barack Obama.A congressional aide, who did not want to be identified, told Reuters it was one of the ideas being reviewed by the super committee.Medigap plans are popular among people who choose not to enroll in Medicare Advantage plans, which deliver Medicare benefits through private insurers, or have no employer-backed retirement health benefits. Some Medigap plans pay nearly all the relatively high Medicare cost-sharing requirements.The federal government already regulates Medigap plans, which are offered by insurers such as United Healthcare Insurance, a unit of UnitedHealth Group Inc, and Bankers Life and Casualty Company, a unit of CNO Financial Group Inc..Of some 46 million people enrolled in Medicare, about 9 million have signed up for one of 10 standardized Medigap plans. A majority are enrolled in plans with little or no deductibles or cost-sharing requirements, according to the Kaiser Family Foundation.ON THE TABLEBudget analysts argue that getting “more skin in the game” by requiring Medicare enrollees to pay a share of costs that otherwise would be covered by Medigap plans would discourage unnecessary visits to the doctor.In his submission to the super committee, Obama proposed a 30 percent surcharge on premiums for new Medicare beneficiaries who buy low deductible Medigap plans starting in 2017.The non-partisan Congressional Budget Office said Obama’s proposal saved an estimated $2.5 billion over 10 years. But the budget savings would grow over time as new Medicare enrollees turn to higher deductible Medigap plans to save money.More far-reaching proposals that would affect current holders of low deductible Medigap plans would save even more — as much as $93 billion over 10 years, according to the CBO.The six Democrats and six Republicans on the super committee have until November 23 to develop a deficit-reduction plan. If it fails, a similar amount of across-the-board spending cuts would be automatically triggered starting in 2013. Congress will have one month to vote on any super committee deal.DISCOURAGING NECESSARY CAREObama’s bipartisan fiscal commission last year suggested requiring a $550 deductible on Medigap plans and limiting coverage on the next $5,000 of costs to 50 percent. CBO said such a plan would save about $53 billion over a decade.The health insurance industry and healthcare advocates oppose moves to restrict Medigap plans. They argue that limiting coverage would not just discourage unnecessary doctor visits, it would discourage necessary care.”My hope is that Democrats are going to be loath to make changes in something that deals with out-of-pocket expenses for seniors and I believe they will be,” said Ron Pollack, executive director of Families USA.The National Association of Insurance Commissioners wrote the super committee last month to urge the panel to avoid changes that would affect current policy holders.”An abrupt alteration of the Medigap cost-sharing benefits for in force policies will cause a major market disruption and cause serious confusion for seniors,” the group wrote.The insurance commissioners also noted that two new types of Medigap policies, which require higher cost sharing, were introduced into the market only last year. More time is needed to gauge their effect on the Medicare program, the letter said.
The so-called “Medigap” insurance plans shield the elderly — many living on fixed incomes — from costly deductibles and other expenses not covered by the traditional fee-for-service Medicare healthcare program.”This one is clearly on the table,” said a lobbyist who has been following “super committee” deliberations on ways to trim federal budget deficits by at least $1.2 trillion over 10 years.But super committee Democrats are unlikely to vote to saddle retirees with new out-of-pocket expenses if Republicans refuse to embrace tax increases for the wealthy.While the elderly buy the private plans, studies suggest they boost government Medicare costs as the extra coverage for deductibles and co-pays encourages greater use of medical services. That, in turn, pushes up costs for Medicare, which has to pay for its portion of the care.As a result, proposals to limit the plans have been included in a number of deficit reduction packages, including one proposed by President Barack Obama.A congressional aide, who did not want to be identified, told Reuters it was one of the ideas being reviewed by the super committee.Medigap plans are popular among people who choose not to enroll in Medicare Advantage plans, which deliver Medicare benefits through private insurers, or have no employer-backed retirement health benefits. Some Medigap plans pay nearly all the relatively high Medicare cost-sharing requirements.The federal government already regulates Medigap plans, which are offered by insurers such as United Healthcare Insurance, a unit of UnitedHealth Group Inc, and Bankers Life and Casualty Company, a unit of CNO Financial Group Inc..Of some 46 million people enrolled in Medicare, about 9 million have signed up for one of 10 standardized Medigap plans. A majority are enrolled in plans with little or no deductibles or cost-sharing requirements, according to the Kaiser Family Foundation.ON THE TABLEBudget analysts argue that getting “more skin in the game” by requiring Medicare enrollees to pay a share of costs that otherwise would be covered by Medigap plans would discourage unnecessary visits to the doctor.In his submission to the super committee, Obama proposed a 30 percent surcharge on premiums for new Medicare beneficiaries who buy low deductible Medigap plans starting in 2017.The non-partisan Congressional Budget Office said Obama’s proposal saved an estimated $2.5 billion over 10 years. But the budget savings would grow over time as new Medicare enrollees turn to higher deductible Medigap plans to save money.More far-reaching proposals that would affect current holders of low deductible Medigap plans would save even more — as much as $93 billion over 10 years, according to the CBO.The six Democrats and six Republicans on the super committee have until November 23 to develop a deficit-reduction plan. If it fails, a similar amount of across-the-board spending cuts would be automatically triggered starting in 2013. Congress will have one month to vote on any super committee deal.DISCOURAGING NECESSARY CAREObama’s bipartisan fiscal commission last year suggested requiring a $550 deductible on Medigap plans and limiting coverage on the next $5,000 of costs to 50 percent. CBO said such a plan would save about $53 billion over a decade.The health insurance industry and healthcare advocates oppose moves to restrict Medigap plans. They argue that limiting coverage would not just discourage unnecessary doctor visits, it would discourage necessary care.”My hope is that Democrats are going to be loath to make changes in something that deals with out-of-pocket expenses for seniors and I believe they will be,” said Ron Pollack, executive director of Families USA.The National Association of Insurance Commissioners wrote the super committee last month to urge the panel to avoid changes that would affect current policy holders.”An abrupt alteration of the Medigap cost-sharing benefits for in force policies will cause a major market disruption and cause serious confusion for seniors,” the group wrote.The insurance commissioners also noted that two new types of Medigap policies, which require higher cost sharing, were introduced into the market only last year. More time is needed to gauge their effect on the Medicare program, the letter said.
