Jazz Hearted Fridays

The Sweetest Taboo

by Sade Adu

Cost surge under new Google CEO unsettles Wall Street

SAN FRANCISCO (Reuters) – Google Inc's stunning 54 percent spending surge in the first quarter spooked investors already worried its new CEO may take his eye off the bottom line to chase revenue growth.

Shares of Google slid more than 5 percent as investors zeroed in on the rise in expenses to $2.84 billion. This dwarfed a 29 percent jump in net revenue and reflected a record hiring spree, company-wide salary raises, and splurging on everything from marketing to technology.

Analysts expect co-founder and new Chief Executive Larry Page to keep spending on new products to spearhead an aggressive push into areas such as social networking and mobile businesses. Google executives said on Thursday the dramatically stepped-up spending was part of the company's plan to chase multibillion business opportunities.

Page, 38, a media-averse technology visionary who took over as CEO this month from decade-long veteran Eric Schmidt, came on a conference call with analysts for just a few minutes, disappointing some eager to hear his plans to jump-start growth and innovation.

Page expressed his optimism in his company's future, then departed, leaving a trail of questions that analysts directed at the other executives.

"My sincere hope is that over time he (Page) enunciates the strategy much more clearly," said Jim Tierney, chief investment officer of asset manager WP Stewart, which owns Google shares.

Page is expected to bolster innovation and cut bureaucracy as Google battles social networking leader Facebook and Apple Inc. But his brief remarks on Thursday's call did little to reassure Wall Street about the management change.

"You got expenses growing faster than revenue and some people were caught by surprise by the willingness of the company to spend," said BGC Partners analyst Colin Gillis.

"But Larry Page has signaled pretty clearly that he is going to be driving up expenses. If the expenses are targeted and result in future revenue streams, then good for Larry. If not, that results in an undisciplined spending approach."

Google plans to hire more than 6,000 people this year, after taking a record 2,000 on board in the quarter and raising salaries by about 10 percent across the board on January 1.

"The discipline of the company has not changed; we're just really bullish on our prospects," Chief Financial Officer Patrick Pichette told analysts. "I can tell you every element of the company (expenses from real estate to food) is scrubbed and scrutinized."

WHAT ARE YOUR INTENTIONS?

The focus on Google's spending overshadowed strong first quarter net revenue growth of 29 percent year-over-year to $6.54 billion, above the $6.32 billion expected by analysts.

For a company of Google's size "that's fairly magnificent," said WP Stewart's Tierney. "There are not a whole lot of companies in any segment that can do that."

Google said drivers of its topline growth included an 18 percent jump in the paid clicks on its search ads, bolstered by new types of retail ads featuring product images, as well as momentum in mobile ads and video ads on its YouTube website.

Shares of Google, which underperformed the market in 2010, are down roughly 9 percent since the company announced in January that Page would replace Schmidt. This week, Page moved swiftly to streamline decision-making at Google's upper ranks by reshuffling reporting lines.

The reorganization, which CFO Pichette said affected all "core pillars" of the company, raised the profile of Google's social networking group as it moves to catch up with Facebook.

Asked about Google's approach to social networking, Jeff Huber, senior vice president of Commerce & Local, said Google considered a websurfer's identity and relationships to be "key signals" among the 200 factors it uses to rank search results.

Google posted net income of $2.3 billion, or $7.04 a share, up from $1.96 billion, or $6.06 a share, in the year-ago first quarter. Excluding certain items, it earned $8.08 a share, below the average analyst expectation of $8.10 a share.

"There's tremendous improvements to be had in our core products and our core business," Page told investors Thursday.

High on investors' list of concerns are Page's attitude toward spending on strategic areas such as social networking and mobile, as well as initiatives such as self-driving cars, and the potential impact on Google's profit margins.

Google's stock fell 5.3 percent to $547.87 after hours.

"I don't think his focus is going to be on managing to margins. I think his focus is going to be on managing to topline growth and new business areas," said Oppenheimer & Co analyst Jason Helfstein.

"The key here is margins are weaker and as a result there's still a question about the company's long-term spending intentions."

Romney Moves Toward U.S. Presidential Run and criticizes Obama Policy

Bloomberg News - As Republican Mitt Romney (pictured left) took the first official steps toward a presidential bid yesterday, he attacked President Barack Obama’s economic policies even while questions linger over his commitment to conservative causes.

“It is time that we put America back on a course of greatness, with a growing economy, good jobs and fiscal discipline inWashington,” Romney, 64, said in a video posted on his websitein which he announced that he is forming a committee to explore a 2012 race for the White House.

Romney, a former governor of Massachusetts, is the second Republican to establish a presidential exploratory group, following former Minnesota Governor Tim Pawlenty. Romney’s announcement came on the eve of the fifth anniversary of his signature on a health-care law in Massachusetts that some Republican activists have been urging him to disavow.

Romney has been planning a second run for the presidency since losing the Republican nomination in 2008 to Arizona Senator John McCain. National polls of likely Republican primary voters have shown him leading or one of the top contenders among a large group of potential candidates. Many Republicans view him as the “default candidate” for the nomination, said Jeffrey Berry, a professor of political science at Tufts University in Medford, Massachusetts.

Establishment of the Massachusetts-based exploratory committee allows Romney to raise money for a presidential campaign and requires him to file financial reports with the Federal Election Commission.

As Romney’s efforts progress, he must deal with the challenge of proving his conservative credentials to a wide swath of the Republican political base, Berry said.

Policy Reversals

In the 2008 campaign, he was criticized over his reversals on social issues such as abortion and gay rights, which he no longer supports. When running unsuccessfully against then- Democratic incumbent Edward M. Kennedy for a U.S. Senate seat from Massachusetts in 1994, Romney had backed legal abortion and advocated for gay rights.

As governor of Massachusetts from 2003 to 2007, Romney supported a law similar to the national health-care overhaul despised by many fiscal and social conservatives.

“He has to convince people he has a backbone, and that backbone is conservative through and through,” Berry said.

Romney also struggled in his previous presidential campaign to alley skepticism about his Mormon faith, particularly from evangelical Christians who make up a significant portion of the Republican electorate. If he runs and is elected, he would be the first Mormon president.

Romney invested more than $40 million of his own fortune in his 2008 presidential bid.

Business Background

In the video recorded yesterday at the University of New Hampshire announcing his exploratory committee, he touted his private-sector experience as a co-founder of Boston-based private equity firm Bain Capital LLC and as CEO of the 2002 Salt Lake City Winter Olympics.

“From my vantage point in business and in government, I have become convinced that America has been put on a dangerous course by Washington politicians, and it has become even worse during the last two years,” Romney said. “But I am also convinced that with able leadership, America’s best days are still ahead.”

“Sometimes I was successful and helped create jobs, other times I was not,” he said. “I learned how America competes with companies in other countries, why jobs leave, and how jobs are created here at home,” he said.

Individual Mandate

Like the federal health-care law that Obama pushed through Congress last year and that Republicans are trying to overturn, the 2006 health-care measure in Massachusetts that Romney shepherded into law includes a mandate requiring individuals to purchase insurance.

Democrats are attempting to highlight his support for the state law by hosting mock birthday displays today in early primary states. In addition, Obama and White House officials have praised the Massachusetts law.

“I agree with Mitt Romney, who recently said he’s proud of what he accomplished on health care in Massachusetts and supports giving states the power to determine their own health- care solutions,” Obama said Feb. 28 in remarks to the country’s governors.

In a Wall Street Journal/NBC News poll conducted March 31- April 4, 21 percent of Republican primary voters backed Romney, putting him ahead of nine other potential candidates.

Republican Rivals

Former House Speaker Newt Gingrich of Georgia on March 3 announced the start of a websiteto enable him to raise money and explore a presidential run. Other prospective 2012 Republican candidates include former Arkansas Governor Mike Huckabee, who won the Iowa caucuses in 2008; former Alaska Governor Sarah Palin, the party’s 2008 vice presidential nominee; Governor Mitch Daniels of Indiana, a former director of the Office of Management and Budget; and former Utah Governor Jon Huntsman, who is stepping down as ambassador to China this month.

Mississippi Governor Haley Barbour has expressed interest in the race and has begun traveling to states that hold early primaries and caucuses, as have former U.S. Senator Rick Santorum ofPennsylvania and Representative Michele Bachmann of Minnesota, a Tea Party favorite.

Businessman Donald Trump also is flirting with seeking the Republican nomination, saying he will announce in June whether he is a candidate.

Obama formally announced his re-election campaign on April 4, releasing a campaign video on his website and sending an e- mail to supporters that said the job of preparing for his campaign “must start today.” The headquarters for his re- election bid will be in Chicago, his adopted hometown.

China tells US to stop preaching on human rights

China has told the US to stop preaching on human rights, after the state department's annual report on the issue criticised China.

Foreign Ministry spokesman Hong Lei said the US should concentrate on its own rights issues and stop interfering.

Chinese authorities have launched a major crackdown on dissent recently.

Unveiling the report, US officials expressed particular concern over the recent arrest of the artist Ai Weiwei, an outspoken critic of the government.

US Secretary of State Hillary Clinton also highlighted reports of other intellectuals and activists being "arbitrarily detained" in recent weeks.

Mr Hong said China was happy to talk about rights "on the basis of equality and mutual respect", but added that Beijing "resolutely opposes" meddling in other country's affairs.

"We advise the US side to reflect on its own human rights issues and not to position itself as a preacher of human rights," he said.

"The US should stop using the issue of human rights reports to interfere in other countries' internal affairs."

The state department's annual report criticising China, followed swiftly by a tough riposte from Beijing, is now a well-established diplomatic ritual.

But analysts say this year's tit-for-tat exchange has been sharpened by Beijing's crackdown on dissent.

The US report accused Beijing of stepping up restrictions on lawyers, activists, bloggers and journalists.

The Communist rulers were also accused of tightening controls on civil society and stepping up efforts to control the press and internet access.

The Beijing authorities also increased the use of forced disappearances, house arrest, and detention in illicit "black jails" to punish activists, petitioners and their families, the US report says.

Other countries accused of perpetrating serious rights violations in the report included Iran, Iraq, Burma, North Korea, the Ivory Coast, Zimbabwe, Ukraine, Russia and Belarus.

Source: BBC News

The UN as facilitator in the next scramble for Africa

French troops masquerading as UN "peace-keepers" on Ivorien soil.

Editor's Corner

Like most neutral observers, I have watched with curious intent, the current conflict in both Libya and the Ivory Coast, but the one that has really caught my attention, is the latter.

When George W. Bush, first with the acquiescence of his brother, then Florida Governor Jeb Bush and then the seal of the U.S. Supreme Court, usurped the people's mandate in the 2000 presidential elections, the European Union never questioned his legitimacy and neither did the United Nations.

Although the division in the body politic of the United States was so palpable, there was no UN resolution, authorizing the use of force to install the true winner of the elections, Al Gore.

Former U.S. President Jimmy Carter, himself said as much during a panel discussion in 2005 at the American University in Washington D.C., "Al Gore defeated George Bush". Carter then went on to state that the electoral process in the United States, during the 2000 elections, "was an abysmal failure".

Again, where was the United Nations? Where was the European Union? More importantly, who watches the West when no one is watching? Are the so-called developing nations, particularly those on the African continent, now supposed to give up their sovereignty to an international body (the United Nations) that has remained woefully inept (since its inception) when it comes to issues germane to the concerns of developing nations and "God's lesser children"?

The stalemate in the Ivory Coast is primarily due to the insistence of France and its Napoleonic tyrant, Nicolas Sarkozy, that Alassane Quattara was the winner of last year's elections, although the Constitutional Council of the Ivory Coast, a sovereign nation, declared incumbent Laurent Gbagbo, the winner.

The United Nations acting as a facilitator for former colonial master France, has overstepped its mandate and continues to insist that Alassane Quattara must be installed as president, even though the generality of the Ivorien people do not feel that way.

That the United Nations has lost its last semblance of credibility with its conduct in the Ivory Coast conflict, is not in question. What is however disturbing is that the African Union, with its lackeys acting as leaders, has not been careful to handle this issue in a manner that negates confrontation, but rather facilitates a peaceful resolution to a uniquely African matter.

France and the other colonial masters have only one interest in Africa, its natural resources and how best to exploit it. They could care less about the loss of one single African life and will use the Quattaras and Mobutus of that troubled continent to achieve their diabolical intentions, regardless of the cost to human life.

Alassane Quattara may however take a cue from other sycophants that have been used and dumped by the West. He needs to understand that he is only as good as what he can get Sarkozy and his band of marauders.

As we witness the initial stages of the next scramble for Africa, its leaders, intellectuals and citizenry must understand that those who forget history are condemned to repeat it.

This time though, rather than the whiskey and gun powder, the halls of diplomacy of an essentially rogue international body, would be the conduit for the next grab.

Jazz Hearted Fridays

You're My Everything

by Anita Baker

Govt announces plan to reduce health care disparities

WASHINGTON – From cradle to grave, minority populations tend to suffer poorer health and get poorer health care than white Americans. In a first-of-its-kind report, the government is recommending steps to reduce those disparities.

The plan being released Friday runs the gamut from improving dental care for poor children to tapping "promotoras," savvy community health workers who can help guide their Spanish-speaking neighbors in seeking treatment.

But it acknowledges that giving everyone an equal shot at living a healthy life depends on far more than what happens inside a doctor's office — or steps that federal health officials can take.

"It's also a product of where people live, labor, learn, play and pray," Dr. Howard Koh, assistant secretary of Health and Human Services, told The Associated Press. "We really need a full commitment from the country to achieve these goals."

HHS wouldn't put a dollar figure on its own pending projects, but said it plans to pay for them with money already in hand and not subject to Congress' ongoing budget battle.

The tight economy casts doubt on how much states and other groups may be able to chip in, said Dr. Paul Jarris, executive director of the Association of State and Territorial Health Officials.

But "we'll never be a healthy nation unless we address these inequities," Jarris said. "There's a lot of momentum finally building" to do so.

Recent years have brought some improvements in health disparities, although racial and ethnic minorities still lag in many areas — from higher infant mortality rates to lower overall life expectancy. In between, they're more likely to suffer from a host of illnesses such as diabetes, heart disease, kidney disease and asthma.

Part of the problem is access to care: Minorities make up more than half of the 50 million people who are uninsured, the HHS report says. The Obama administration's year-old health-care overhaul addresses some of the insurance gaps.

But there's a growing appreciation that disparities are more complex. Even geography plays a big role — in shared ancestry and customs, local industry, easy access to fresh fruits and vegetables, and how easy and safe it is to get physical activity in a particular community.

Among the HHS plans outlined in Friday's report:

-- Working with states to increase by 10 percent the number of poor children who receive preventive dental care, including cavity-blocking sealants.

-- Hiring trusted local people to serve as community health workers who can help diabetics understand and stick to their doctor's care instructions. A Medicare pilot program has begun in Mississippi and Texas, and will spread to other areas.

-- Increasing use of trained promotoras, the Spanish term for those trusted locals. Head Start will use them to direct parents to health services.

-- Developing reimbursement incentives to improve the quality of care for minority populations, such as better prevention of heart disease and strokes.

-- New studies comparing which treatments work best for diabetes, asthma, arthritis and heart disease in minority populations.

-- Creating an online national registry of certified interpreters that doctors or hospitals can use for patients who don't speak English.

-- State grants to measure and improve community asthma care.

HHS held meetings around the country to gather input from state and local officials, community groups and average citizens on barriers to health equality, and a separate report reflects strategies for community efforts.

That inclusiveness should "bring more people to the work of eliminating disparities," said Cheryl Boyce, former director of the Ohio Commission on Minority Health. "It has to trickle down into community action."

Source: AP News

Wall Street down on news of Japan aftershock; retailers up

NEW YORK (Reuters) – Wall Street slipped on Thursday after a major aftershock in Japan reignited fears about its nuclear power crisis, but greater faith in the U.S. economy's steady path held losses in check.

A rise in retail stocks after better-than-expected March chain-store sales limited broader market declines as the data added to evidence of a sustained economic recovery.

Investors sought protection against further market declines following the magnitude 7.4 aftershock in Japan, but a move to safer assets did not materialize.

"It made people think that this is an ongoing crisis that could further hurt stocks, but one thing we didn't see is the flight to safety," said John Canally, economist at LPL Financial in Boston, Massachusetts.

The CBOE Volatility Index VIX (.VIX), Wall Street's so-called fear gauge, closed up 1.2 percent at 17.11 after rising more than 2 percent earlier.

Chris McKhann, analyst at stock and options website optionMonster.com in Chicago, said the VIX had little reaction to the earthquake news, "further supporting the fact that nothing seems to shake this market."

Stocks had been mostly flat in early trading. The S&P 500 encountered strong technical resistance that stymied gains after a larger-than-expected drop in weekly initial U.S. jobless claims and data on the surprisingly strong March retail sales.

Among retailers, Costco Wholesale Corp (COST.O) beat expectations, and its shares gained 3.8 percent to $77.82. Macy's Inc (M.N) rose 0.8 percent to $25.40, while Target Corp (TGT.N) fell 2.6 percent to $49.62.

The Dow Jones industrial average (.DJI) was down 17.26 points, or 0.14 percent, at 12,409.49. The Standard & Poor's 500 Index (.SPX) was down 2.03 points, or 0.15 percent, at 1,333.51. The Nasdaq Composite Index (.IXIC) was down 3.68 points, or 0.13 percent, at 2,796.14.

Volume was 7.06 billion shares on the New York Stock Exchange, NYSE Amex and Nasdaq, compared with last year's estimated daily average of 8.47 billion.

Bed Bath and Beyond Inc (BBBY.O) surged 10.5 percent to $54.55 a day after it forecast full-year earnings growth that would beat Wall Street expectations.

U.S.-listed shares of rare-earth stocks gained sharply, including Canada's Rare Element Resources (REE.A), up 16.4 percent at $15.30 in New York. Shares of Avalon Rare Metals (AVL.A) also of Canada, gained 9.6 percent to $9.52.

The aftershock in Japan did not cause a tsunami or any detectable damage at the Fukushima Daiichi nuclear plant, crippled from a massive March 11 quake. For details, see

U.S. Treasuries, the traditional safe-haven asset, rose only marginally after the earthquake.

The iShares MSCI Japan Index ETF (EWJ.P) dropped 0.8 percent, rebounding off lows, while dollar-denominated Nikkei futures slid 1.6 percent.

New York-traded shares of Japanese stocks fell, but some strategists said they might buy on the weakness.

"I'm looking at auto manufacturers, and I'm definitely looking to buy Honda if it gets cheap enough," said Tim Hartzell, chief investment officer for Houston-based Sequent Asset Management.

Honda Motor Corp (HMC.N) shares rose 0.1 percent to $34.20.

Declining stocks outnumbered advancing ones on the NYSE by 1,872 to 1,116, while on the Nasdaq, decliners beat advancers by 1,658 to 935.

Editor's Literary Thursdays

The Journey....


I have toiled night and day, but have nothing to show....
I have wandered through the wilderness, but with nothing in sight....
I have beckoned to the Angels, but they are yet to be seen....
In my pain, I have wondered aloud and recoiled in despair....
But who am I to dismiss the path of glory....
For in my desolate peril, I am assured of a new beginning....
In my languished anguish, I see the dawn of a new day....
For I must go on, my senses tell me....
The journey has only begun, my conscience assures me....
For I must not worry, but must surely tarry....
For the journey, though began with a query....
Must end with the promise, the query beckons....
This is my life.... of the glory foretold....
For I must not die, but shall surely live....
And in living, I must be fulfilled....
And in fulfillment, I must be complete....
And in completion, the glory shall be revealed....
For I am the reason for the journey....
And the journey, the reason for my being....


By Boye' A. Coker


All Rights Reserved

Glenn Beck's Fox show coming to an end

The crying "apostle of hate"

NEW YORK – Glenn Beck later this year will end his Fox News Channel talk show, which has sunk in the ratings and has suffered from an advertiser boycott.

Fox and Beck's company, Mercury Radio Arts, said Wednesday they will stay in business creating other projects for Fox television and digital, starting with some documentaries Beck is preparing.

Beck was a quick burn on Fox News Channel. Almost immediately after joining the network in January 2009, he doubled the ratings at his afternoon time slot. Fans found his conservative populism entertaining, while Comedy Central's Stephen Colbert described Beck's "crank up the crazy and rip off the knob" moments.

He was popular with tea party activists and drew thousands of people to the National Mall in Washington last August for a "restoring honor" rally.

Yet some of his statements were getting him in trouble, and critics appealed to advertisers to boycott his show last summer after Beck said President Barack Obama had "a deep-seated hatred for white people."

Beck said that he went to Roger Ailes, Fox News chairman and CEO, in January to discuss ways they could continue to work together without the daily show.

"Half of the headlines say he's been canceled," Ailes said. "The other half say he quit. We're pretty happy with both of them."

Beck said he noted on his show Tuesday that "how many times can I tell the (George) Soros story," referring the liberal donor that Beck has made a target of attacks.

"We felt Glenn brought additional information, a unique perspective, a certain amount of passion and insight to the channel and he did," Ailes said. "But that story of what's going on and why America is in trouble today, I think he told that story as well as could be told. Whether you can just keep telling that story or not ... we're not so sure."

Beck, who outlined on Wednesday's show his reasons for believing that "we're heading into deep and treacherous waters," told his viewers at the end of the show that his Fox talk show would conclude.

"I will continue to tell the story and I will be showing other ways for us to connect," he said.

More than 400 Fox advertisers told the company they did not want their commercials on Beck's show. Beck's advertisers were dominated by financial services firms, many touting gold as an investment.

Ailes dismissed the financial impact of the boycott but expressed some frustration with it.

"Advertisers who get weak-kneed because some idiot on a blog site writes to them and says we need to stifle speech, I get a little frustrated by that," he said.

One of Beck's most prominent critics — David Brock, founder of the liberal watchdog Media Matters for America — said that "the only surprise is that it took Fox News months to reach this decision."

"Fox News Channel clearly understands that Beck's increasingly erratic behavior is a liability to their ratings and their bottom line, and we are glad to see them take this action," said James Rucker, executive director of ColorofChange.org, which organized the advertiser boycott.

Beck was a lightning rod for other critics, as well. The Jewish Funds for Justice organized a petition drive last fall to get Beck fired for what it called his misuse of Nazis and the Holocaust phrases against political opponents.

Viewers had begun turning away. Beck's 5 p.m. ET show averaged 2.7 million viewers during the first three months of 2010, and was at just under 2 million for the same period this year, the Nielsen Co. said. His decline was sharper among younger viewers sought by advertisers.

Increasingly, the show began to be dominated by Beck standing in front of a chalk board giving his theories about the world's troubles.

However, Beck has built a powerful brand for himself through a daily radio show, best-selling books and personal appearances. Mercury Radio Arts is expanding and a key Fox executive, Joel Cheatwood, is joining the company later this month.

Beck's company created and operates a news and opinion website, TheBlaze.com. For $9.95 a month, he offers fans access to "Insider Extreme," a website that beams documentaries, Beck personal appearances and a video simulcast of Beck's daily radio show, with an extra hour featuring Beck cohorts.

Beck said ratings for his television show were not an issue, noting that "we have buried the competition in every sense." His supporters believe that the recent decline is more a reflection that ratings were abnormally high early last year.

"Call CNN and MSNBC and ask them if they'd like to have Glenn's ratings at 5 in the afternoon," Ailes said.

Ailes emphasized that Fox and Beck will continue to work together.

"We like each other," he said in a dual interview with Beck. "We're not drawing pictures of each other on the walls, having staff fights and stealing each other's food out of the refrigerator or any of that stuff."