Wednesday, 24 September 2014

Here's what Coke and Pepsi didn't tell you when they announced their plan to cut calories

For the most part our best interests are at least loosely aligned with the corporate powers that be and marketing just fades into the background noise. For example, Apple does a great job packaging its iPhones but the truth is it’s just a cool device. If you have the means, your life is probably a tiny bit more enjoyable if you have a kick-ass smartphone.
The fact that the media slavishly picks up on the story of the people camping out to buy their iPhones helps build the frenzy, and Apple certainly encourages such coverage, but the demand is organic. There’s no need to work on convincing people Apple makes a good phone. They just do. End of conversation.
Would that our world was made up entirely of iPhones. It’s not. For the most part what we see, read, eat and drink is a bunch of garbage we lap up out of habit, as much as anything else. At some point there comes a time where science catches up to habit and we realize just how horrible a beloved product really is for us.
View gallery
.
An early Marlboro Man ad
An early Marlboro Man ad
The moment of grim reality happened in tobacco in 1952 when Reader’s Digest of all magazines published a piece called “Cancer by the Carton." From then on the tobacco industry banded together to make some of the most magnificent ads ever seen. The Marlboro Man was little more than a sunset-hued reminder that real men didn’t get told what they could and couldn’t inhale. Joe Camel, Virginia Slims hosting a tennis tournament. It was all genius. Doomed, of course. Cigarette consumption on a per capita basis peaked in 1963. History’s greatest works of art are borne of romantic futility and, dammit, the tobacco industry may have done a lot of horrible things but we should at least acknowledge the way the industry advanced the art of marketing in the wake of the Cancer by the Carton scandal.
Soda takes control
Yesterday the soda industry faced up to the daunting trends facing its business in a way that had their deceased cigarette marketing predecessors wheezing with delight. Speaking from the Clinton Global Initiative representatives from Pepsi (PEP), Coca-Cola (KO) and Dr. Pepper (DPS) pledged to reduce the number of calories consumed in the form of sugary sodas by 20% in the next 11 years.
“We’ll use the most critical levers we have at our disposal, and the focus really will be on transforming the beverage landscape in the U.S. over the next 10 years,” said Susan Neely, chief executive of the American Beverage Association, the industry trade group.
Ms. Neely called the commitment a “stretch goal” and said it had been hotly debated in executive suites at the three companies. Neely says the industry will push low and no calorie drinks by levering its promotional muscle and tie ins with literally every place that sells soda on earth.
Ladies and gentlemen we are in the presence of genius. Susan Neely of the American Beverage Association, we’ve never met but allow me to commend you on your spectacular, breathtaking cynicism and pro-activity. This transcends anything we’ve seen from the tobacco industry. The soda industry selling a 20% reduction in caloric intake over the next 11 years is right up there with “You can’t fire me, I quit” in the annals of professional spin and crisis framing.
View gallery
.
Here’s what Ms. Neely and the rest of the industry aren’t telling you: the market for sugary drinks is fading despite the industry spending more than a billion a year pushing the stuff. Per capita soda consumption in the U.S. peaked in 1998 and was at the lowest levels since 1986 last year. Calories from soda contracted 23% from 2000 to 2013. At the time the industry considered this drop off something of a crisis.
Beyond just changing marketing strategies Coke went on a buying binge, snapping up Vitamin Water for $4.2 billion in 2007 and paying more than $2 billion for a partial stake in Monster energy drinks earlier this year.
As good fortune would have it, Vitamin Water along with Gatorade, Coke Zero and whatever low-calorie fizzy product the companies can possibly conceive of will fit quite nicely in the empty cooler space created by the soda industry’s selfless reduction goals.

Apple Pulls New IOS Amid Dropped Calls. Advice on Twitter: DO NOT UPDATE

Apple Inc. (AAPL) pulled an update for the iPhone operating system after the new software caused some people to lose cellular service.
After rolling out the latest version of its iOS 8 mobile software earlier today, the Cupertino, California-based company withdrew the update when scores of customers experienced dropped cellular service so they couldn’t make calls. The fingerprint reading Touch ID feature also wasn’t working after the update, according to some customers.
“No service on my iPhone after iOS 8.0.1,” said one Twitter user. “DO NOT UPDATE,” said another.
Apple said in a statement that it had received reports of the issues with the update, which is called iOS 8.0.1. Customers can still use iOS 8, which was released last week.
Related:
“We are actively investigating these reports and will provide information as quickly as we can,”Trudy Muller, a spokeswoman for Apple, said in the statement. “In the meantime, we have pulled back the iOS 8.0.1 update.”
The pullback adds to the snafus Apple has experienced with the iOS 8 mobile software since it was released last week. Popular applications made by Facebook Inc. (FB), Dropbox Inc. and others have been crashing more frequently. According to data from Crittercism Inc., an analytics firm, iOS 8 causes apps to crash about 3.3 percent of the time, or 67 percent more than last year’s version. Customers also have complained about having to delete photos, videos and apps to make room for the new software.
Photographer: Tomohiro Ohsumi/Bloomberg
Apple Inc.'s iPhone 6 is displayed at the company's Omotesando store in Tokyo.

Going Wrong

Apple shares fell less than 1 percent to $101.75 at the close inNew York. The stock is up 27 percent this year.
Apple released the iOS 8 update today to fix software bugs and add the health and fitness-monitoring application HealthKit, a program that had been cut from last week’s initial release because the company discovered flaws. After the new version went out today, many customers immediately lost cellular service.
“That’s the danger with all these updates: if you get it wrong, it goes wrong big, bad and fast,” said Frank Gillett, an analyst with Forrester Research. “There’s a fundamental question of how it got out in the first place.”
The iOS software is the system that powers the iPhone, iPad and iPod Touch. According to Apple, 46 percent of devices connecting to the company’s App Store are running iOS 8.

Marred Rollout

For Apple Chief Executive Officer Tim Cook, the software problems tarnish what has been a record-breaking release for the latest iPhones. The company sold more than 10 million handsets of the new iPhone 6 and 6 Plus in their first weekend on sale starting Sept. 19, with the devices becoming available in more than the original list of 10 countries beginning on Sept. 26.
Apple has also dealt with problems with previous software releases, most famously when the mapping software it debuted in 2012 gave people wrong directions and showed mislabeled landmarks. Cook later apologized for the program.
“Apple’s not the first to have this kind of problem, but when a gadget is in your pocket, it’s a completely different reaction,” said Forrester’s Gillett.
To contact the reporter on this story: Adam Satariano in San Francisco atasatariano1@bloomberg.net
To contact the editors responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net Jillian Ward

Apple Pulls New IOS Amid Dropped Calls. Advice on Twitter: DO NOT UPDATE

Apple Inc. (AAPL) pulled an update for the iPhone operating system after the new software caused some people to lose cellular service.
After rolling out the latest version of its iOS 8 mobile software earlier today, the Cupertino, California-based company withdrew the update when scores of customers experienced dropped cellular service so they couldn’t make calls. The fingerprint reading Touch ID feature also wasn’t working after the update, according to some customers.
“No service on my iPhone after iOS 8.0.1,” said one Twitter user. “DO NOT UPDATE,” said another.
Apple said in a statement that it had received reports of the issues with the update, which is called iOS 8.0.1. Customers can still use iOS 8, which was released last week.
Related:
“We are actively investigating these reports and will provide information as quickly as we can,”Trudy Muller, a spokeswoman for Apple, said in the statement. “In the meantime, we have pulled back the iOS 8.0.1 update.”
The pullback adds to the snafus Apple has experienced with the iOS 8 mobile software since it was released last week. Popular applications made by Facebook Inc. (FB), Dropbox Inc. and others have been crashing more frequently. According to data from Crittercism Inc., an analytics firm, iOS 8 causes apps to crash about 3.3 percent of the time, or 67 percent more than last year’s version. Customers also have complained about having to delete photos, videos and apps to make room for the new software.
Photographer: Tomohiro Ohsumi/Bloomberg
Apple Inc.'s iPhone 6 is displayed at the company's Omotesando store in Tokyo.

Going Wrong

Apple shares fell less than 1 percent to $101.75 at the close inNew York. The stock is up 27 percent this year.
Apple released the iOS 8 update today to fix software bugs and add the health and fitness-monitoring application HealthKit, a program that had been cut from last week’s initial release because the company discovered flaws. After the new version went out today, many customers immediately lost cellular service.
“That’s the danger with all these updates: if you get it wrong, it goes wrong big, bad and fast,” said Frank Gillett, an analyst with Forrester Research. “There’s a fundamental question of how it got out in the first place.”
The iOS software is the system that powers the iPhone, iPad and iPod Touch. According to Apple, 46 percent of devices connecting to the company’s App Store are running iOS 8.

Marred Rollout

For Apple Chief Executive Officer Tim Cook, the software problems tarnish what has been a record-breaking release for the latest iPhones. The company sold more than 10 million handsets of the new iPhone 6 and 6 Plus in their first weekend on sale starting Sept. 19, with the devices becoming available in more than the original list of 10 countries beginning on Sept. 26.
Apple has also dealt with problems with previous software releases, most famously when the mapping software it debuted in 2012 gave people wrong directions and showed mislabeled landmarks. Cook later apologized for the program.
“Apple’s not the first to have this kind of problem, but when a gadget is in your pocket, it’s a completely different reaction,” said Forrester’s Gillett.
To contact the reporter on this story: Adam Satariano in San Francisco atasatariano1@bloomberg.net
To contact the editors responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net Jillian Ward

Friday, 19 September 2014

Australian dollar could fall to 73 US cents: analysts

Economists at one of the major investment banks say the Australian dollar could fall as low as 73 US cents.
UBS economists Scott Haslem and George Tharenou say their application of a range of models suggests the dollar could correct lower to between 73 and 83 US cents.
That is below their own forecast, which is for the dollar to be worth 85 US cents by the middle of next year.
UBS says based on iron ore prices, the dollar would be worth around 73 US cents, while a broader commodity prices basket would put a reasonable value around 82 cents.
Using their own replica of the Reserve Bank's fair value model, the analysts say the dollar should fall to 83 US cents.
A large part of the Australian dollar's weakness is expected to be due to increasing US dollar strength.
Yesterday the Australian dollar broke convincingly below 90 US cents after the conclusion of the September US Federal Reserve meeting, which saw committee members lift their forecasts of where US rates would be by the end of next year.
The UBS economists say the story of rising US interest rates is likely to dominate currency trade in 2015.
"Most leading indicators suggest the US economy is strengthening relative to other countries, while diverging rates policies ought to be US-dollar supportive," they noted.
"Finally, the starting position of USD valuation is also favourable, with the real effective exchange rate close to a 40-year low."
China weakness weighs on iron ore outlook
While that US economic strength pushes the greenback up, slowing Chinese economic growth is likely to weigh on the Australian dollar.
Many analysts are now forecasting Chinese growth in the low 7 per cent range this year, falling below 7 per cent next.
Shanghai steel futures fell more than 2 per cent to a record low, and iron ore futures are down around 3 per cent in China today, both of which bode ill for the future prices of Australia's major export.
With slowing economic growth and a declining property market, many analysts are negative about the prospects of a sustained iron ore price rebound.
"There is no sign that demand for steel can improve in the short term," China-based Cao Bo from Jinrui Futures told Reuters.
"I don't think we've seen the worst for the iron ore and steel markets."
Such weakness in iron ore prices is likely to heighten pressure on the Australian dollar to fall.
Interest rate implications
Saul Eslake says the recent drop in the local currency from the mid-90s to below 90 US cents shows the potential for a sustained drop in the currency to happen sooner rather than later.
That would implications for the timing of the first Reserve Bank interest rate increase.
"If this were to be the case, we would likely bring forward our current forecast for the RBA to begin tightening policy from early 2016," the Bank of America Merrill Lynch Australian chief economist wrote in a research note.
"We also note that, although any exchange rate depreciation is a net positive for the economy, it would not benefit all sectors equally.
While export-exposed services sectors would be key beneficiaries, the retail sector would be among the big losers."

Some of the Best Sites for Trading News and Information

http://www.finviz.com/
http://www.bloomberg.com/
http://www.reuters.com/
http://www.investing.com/

Stocks Rise as Investors Await Alibaba to Begin Trading

U.S. stocks rose for a fourth day following a rally in Europe after Scotland rejected independence and as corporate takeovers boosted shares. Investors also watched the first day of trading of Alibaba Group Holding Ltd.
Dresser-Rand Group Inc. rallied 13 percent as Siemens AG prepared to offer more than $6.5 billion for the company, according to people familiar with the plan. Concur Technologies Inc. jumped 18 percent as SAP SE agreed to buy the company for $7.4 billion to boost its cloud-computing business. Oracle Corp. slid 2.4 percent after Larry Ellison stepped down as chief executive officer.
The Standard & Poor’s 500 Index advanced 0.2 percent to 2,014.42 at 9:30 a.m. in New York. TheDow Jones Industrial Average added 35 points, or 0.2 percent, to 17,300.99.
“The Scottish ‘no’ vote gave some tailwind to the European markets, and we’re just trading in sympathy off of that to start the day,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview.
Trading may be subject to unexpected swings today because of a quarterly event known as quadruple witching, when futures and options contracts on indexes and individual stocks expire.
S&P Dow Jones Indices is also scheduled to rebalance the S&P 500 in a quarterly move to adjust stock weightings. About $25 billion of shares in trades will be done as investors buy and sell to mimic the changes, according to a Sept. 7 estimate by Howard Silverblatt, an index analyst at the New York-based company.

Alibaba IPO

Alibaba, the e-commerce company started in 1999 with $60,000 cobbled together by Jack Ma, cemented its status as a symbol of China’s economic emergence by raising $21.8 billion in a U.S. initial public offering. The company and shareholders including Yahoo! Inc. sold 320.1 million shares for $68 each, according to a statement, after offering them for $66 to $68.
The sale, which values Alibaba at $167.6 billion, is already the largest by any company in the U.S., and has the potential to break the global record -- currently held by Agricultural Bank of China Ltd.’s $22 billion IPO in 2010 -- if underwriters issue more shares.
European shares rose, sending the Stoxx Europe 600 Index up 0.5 percent. Scotland’s First MinisterAlex Salmond conceded defeat after the anti-independence “No” camp garnered 55 percent of the votes.
A report at 10 a.m. in Washington may show that a gauge of the U.S. outlook for the next three to six months rose at a slower pace in August. The Conference Board’s index of leading indicators climbed 0.4 percent, following a 0.9 percent increase in July, according to the median forecast of economists in a Bloomberg survey.
To contact the reporters on this story: Joseph Ciolli in New York at jciolli@bloomberg.net; Lu Wang in New York at lwang8@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.netJeremy Herron