08/03/2011 (6:24 am)

Ontario Liberals entrench 1,800 renewable power projects

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Ontario’s Liberal government has entrenched the legal rights of 1,800 proposed renewable energy contracts – making it impossible for a new government to cancel them.

The Liberals have changed the terms of contracts under its feed-in tariff program or FIT.

Under the old system, the Ontario Power Authority, which signs the contracts with power developers, could unilaterally terminate agreements at a relatively late stage of the approval process.

But a new directive from energy minister Brad Duguid will entrench the contracts at a much earlier stage in the pipeline.

That will protect 1,800 contracts now in the pipeline from cancellation.

Collectively, the projects represent 3,500 megawatts of generating capacity, or close to 10 per cent of the province’s current total capacity.

The issue is a crucial one, since Conservative leader Tim Hudak has vowed to cancel the FIT program if the Conservatives win the provincial election on Oct payday advance. 6.

Hudak has said the high prices paid under the FIT program are “unsustainable.”

While the Conservatives would not tear up existing contracts, projects that were only part way through the approval process were vulnerable to cancellation.

Duguid said the changes will provide assurance for renewable power developers, and their suppliers, that their projects are likely to proceed.

“There’s no question Tim Hudak’s irresponsible plan to dismantle our programs and destroy our clean energy economy is something that’s creating a great deal of instability in our economy right now,” Duguid said.

Proposed projects will still have to get environmental approval, show that they’re going to meet requirements for domestic content and submit a financing plan before they can proceed.

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07/26/2011 (3:44 am)

Netflix braces for growth slowdown, stock plunges

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Netflix Inc. is bracing for customer backlash that could result in its slowest subscriber growth in more than three years amid changes to its online video and DVD rental service that will raise prices by as much as 60 percent.

The sobering forecast issued Monday overshadowed the second-quarter earnings that accompanied the company’s outlook.

Netflix’s shares plummeted almost 10 percent, largely because the company expects its results for the current quarter ending in September to miss the targets set by stock market analysts.

The shortfall stems from an anticipated slowdown in Netflix’s subscriber growth amid the most radical change in the company’s pricing since it began renting DVDs through the mail 12 years ago.

Instead of offering packages that combine DVD rentals and Internet-delivered video for a single price, Netflix informed subscribers two weeks ago that it would sell the two entertainment options as separate plans. The change means customers will have to pay substantially more if they want to get both DVDs and Internet video from Netflix. For instance, a bundled plan that had been priced at $10 per month will now cost $16 per month, beginning Sept. 1, for existing customers. The prices of other popular bundled plans will rise by 20 percent to 33 percent.

Netflix expects many customers to pick between the DVD or streaming plan to avoid getting hit with a higher bill if they subscribe to both plans. The company said it anticipates another group of subscribers is so infuriated with the rate changes that they will stop being customers entirely.

Management didn’t estimate how many subscribers will cancel, but a large customer exodus appears to be factored into the company’s forecast for the current quarter.

Netflix expects to add as few as 190,000 subscribers or as many as 1.29 million subscribers in the current quarter. Either figure will be a falloff from the 1.9 million subscribers added in the April-June period to propel Netflix’s total customers to nearly 25.6 million. In last year’s third quarter, Netflix added nearly 2 million subscribers.

If the growth falls on the lower end of the range, it would represent the lowest number of subscribers that Netflix has picked up during a three-month stretch since the second quarter of 2008 when it added 168,000 customers. Back then, Netflix only operated in the U.S. It now has 1 million Canadian customers who subscribe to the Internet streaming service. The company plans to expand into Latin America later this year savings account payday advance.

“We are feeling great about the decision, as tough as it is,” Netflix CEO Reed Hastings told analysts about the new pricing plan in a Monday conference call.

Some of the numbers that Netflix released helped explain why the company felt compelled to change its rental plans, even though it knew the new prices would alienate man of its most loyal customers.

The company is trying to pay for increasingly higher bills for the rights to stream Internet video while still trying to cover the costs of shipping DVDs to millions of U.S. households that still want to watch movies on discs because movie studios insist on keeping the most recent theatrical releases on that format.

Netflix spent nearly $613 million on streaming rights in the second quarter, a more than nine-fold increase from the same time last year. The company so far has signed long-term contracts committing it to pay $2.44 billion for streaming rights.

Meanwhile, more than 15 million of Netflix’s subscribers were still renting DVDs through the mail, although they aren’t asking for as many discs each month as they once did.

Even before the rate changes, most of Netflix’s new subscribers have been signing up for a streaming-only plan that the company rolled out last year. About 75 percent, or 1.3 million, of the customers picked up in the second quarter opted for the streaming only-plan.

The company expects 12 million subscribers, or less than half of its customers, to be paying for both the DVD and streaming options at the end of September.

Netflix earned $68.2 million, or $1.26 per share, in the most recent quarter. That marked a 57 percent increase from $43.5 million, or 80 cents per share, at the same time last year.

Revenue climbed 52 percent from the same time last year to $789 million.

The earnings per share were well above the average estimate among analysts surveyed by FactSet. The revenue fell about $2 million below analyst forecasts.

Investors though were more concerned about management’s third quarter forecast. That calls for Netflix’s earnings per share to range from 72 cents to $1.07 per share on revenue of $800 million to $829 million. Analysts had projected earnings of $1.11 per share on $845 million in revenue.

Netflix shares plunged $27.16 to $254.25 in Monday’s extended trading.

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07/09/2011 (10:52 pm)

UK tabloid writes own obit amid hacking scandal

Filed under: Uncategorized, online |

Writing the obituary for their own newspaper, News of the World’s journalists prepared their final edition Saturday as Britain’s media establishment reeled from the expanding phone-hacking scandal that brought down the muckraking tabloid after 168 years.

Small clues gave the tone of the London newsroom away _ from a commemorative T-shirt bearing a “Goodbye, cruel News of the World, I’m leaving you today” worn by one staffer, to editors typing tributes to the tabloid’s journalistic victories into newspaper text boxes.

Rupert Murdoch, whose media empire owns the paper, will arrive in London on Sunday on a scheduled visit, a person familiar with his itinerary told The Associated Press on condition of anonymity because of the sensitivity of the matter.

He is facing a maelstrom of criticism and outrage over the sequence of events set off by allegations the paper’s journalists paid police for information and hacked into the voicemails of young murder victims and the grieving families of dead soldiers.

The recent revelations culminated in the decision to close the paper and put 200 journalists out of work.

The paper’s editor, Colin Myler, offered words of encouragement and sympathy to his staff on a “very difficult day.”

“It’s not where we want to be and it’s not where we deserve to be,” he said in a memo to staff seen by Britain’s Press Association. “But I know we will produce a paper to be proud of.”

The contents of the front page were privy to “only a special few,” according to Helen Moss, a news and features editor who offered refreshments to journalists camped outside the tabloid’s headquarters in a bizarre death watch of sorts.

“I expect it’ll be a massive tribute to 168 years of history ending today,” she said, describing an “extremely emotional” newsroom.

Much of the emotion continued to focus on New International _ a subsidiary of Murdoch’s News Corp. _ which took the decision to jettison the paper on Thursday after the new allegations sparked a fierce backlash and the flight of advertisers.

The scandal exploded this week after it was reported that the News of the World had hacked the mobile phone of 13-year-old murder victim Milly Dowler in 2002 while her family and police were desperately searching for her. News of the World operatives reportedly deleted some messages from the phone’s voicemail, giving the girl’s parents false hope that she was still alive.

That ignited public outrage far beyond any previous reaction to press intrusion into the lives of politicians and celebrities, which the paper has acknowledged and for which it has paid compensation to some prominent victims, including actress Sienna Miller.

Revelations that journalists paid police for information added fuel to the fire, prompting calls for a boycott and causing dozens of companies to pull their advertising from the paper amid fears they would be tainted by association.

James Murdoch _ tipped by many as a likely successor to his father _ then announced Thursday that this Sunday’s edition of the tabloid would be its last and all revenue from it will go to “good causes free credit score.”

The closure was seen by some as a desperate attempt by the media conglomerate to stem negative fallout and thus save its 12 billion-pound ($19 billion) deal to take over satellite broadcaster British Sky Broadcasting.

But the British government has signaled that deal will be delayed because of the crisis and the scandal has continued to unfold with the announcement of three arrests linked to the matter on Friday.

Andy Coulson _ a former News of the World editor and ex-communications chief to Prime Minister David Cameron _ was arrested Friday, as was Clive Goodman, an ex-News of the World royal reporter, and an unidentified 63-year-old man. All three have since been released on bail.

The developments have turned up the heat on Britain’s media industry amid concerns a police investigation won’t stop with the News of the World.

It has also cast new scrutiny on the cozy relationship between British politicians and the powerful Murdoch empire, putting the media baron’s company on the defensive.

Many journalists and media watchers have expressed astonishment that Rebekah Brooks, who was editor of News of the World when some of the hacking allegedly occurred, was keeping her job at head of News Corp.’s U.K. newspaper operations while the paper’s 200 employees were laid off.

She told lawmakers she had “no knowledge whatsoever” of the Milly Dowler hacking or any other case while she was editor, according to a letter published by Britain’s home affairs select committee on Saturday.

“I also want to reassure you that the practice of phone hacking is not continuing at the News of the World,” she said in response to the committee’s request for new evidence. “For the avoidance of doubt, I should add that we have no reason to believe that any phone hacking occurred at any other of our titles.”

While she has been portrayed as a villain in the unfolding story, Brooks _ with strong connections to British politics and decades of experience behind her _ has insisted she is the right person to lead News International through the crisis.

Upping the ante, the Church of England threatened to pull nearly 4 million pounds of investments from News Corp. “if does not hold senior executives to account … for the gross failures of management at the News of the World.”

The church’s ethical investment advisory group said Sunday it wrote to News Corp. saying closing News of the World was not a “sufficient response” to the “utterly reprehensible and unethical” practices uncovered at the tabloid.

Murdoch has opted to remain largely silent amid the fallout, issuing one official statement that made clear Brooks would remain at the helm.

He spoke briefly to reporters in Sun Valley, Idaho on Saturday, where he was attending a media conference. When asked whose decision it was to close the paper he said, “It was a collective decision.”

___

Julie Jacobson contributed to this report from Sun Valley, Idaho.

Source

06/30/2011 (5:44 am)

OMB approves 10,000-unit plan for Downsview lands

Filed under: money, online |

Longtime residents lost their bid to curb development in Downsview Park as the Ontario Municipal Board approved a plan for up to 10,000 new residential units on Wednesday.

The development will help fund the transformation of the 572-acre former military base into an urban park.

Residents concerned about traffic congestion and loss of green space requested that planners cut the previously approved 8,300 units by 830 in two particular areas. Instead, the board approved an amended city plan for an additional 1,700.

06/15/2011 (4:53 am)

Pensions: Retirement income now up in the air

Filed under: online, technology |

Are you one of the lucky third? This blessed and declining group comprises the roughly 30 per cent of Canadian employees hanging on for dear life to their defined-benefit pension plans.

Among them are striking workers at Air Canada and U.S. Steel Canada in Hamilton, who want to retain DB plans in which the employer guarantees a retirement income based on years of service and earnings.

The percentage of employees covered by DB plans has plunged from 41 per cent in 1991 to barely 30 per cent today.

At the same time, the number of troubled DB plans has been rising. In 2008, at the height of the market meltdown, Statistics Canada reported that 75 per cent of workplace pensions (most of them DB plans) had unfunded liabilities, meaning their liabilities were greater than their assets. By 2009, the figure had risen to 83 per cent.

An underfunded or unfunded DB pension plan forces a company to pay out benefits to workers from other sources or spend money it doesn

06/10/2011 (12:17 am)

Toronto firm i4i wins $290M patent case against Microsoft

Filed under: online, real estate |

WASHINGTON

05/31/2011 (6:12 am)

Carney expected to keep borrowing costs low

Filed under: legal, online |

OTTAWA

05/18/2011 (5:47 am)

U.S. Coast Guard closes part of swollen Mississippi River

Filed under: online, real estate |

JACKSON, MISS.

05/06/2011 (9:43 pm)

Ouattara takes oath months after Ivory Coast vote

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President Alassane Ouattara took the oath of office Friday, five months after the election that nearly ripped this African nation in two and left hundreds dead when the country’s strongman refused to concede defeat.

Ouattara spent much of that time barricaded inside a hotel, surrounded by troops loyal to Laurent Gbagbo, who used the army to terrorize the population. Gbagbo was removed militarily last month and is now under house arrest in a remote town 420 miles (700 kilometers) north of Abidjan.

The price of installing the country’s democratically elected leader was steep. Hundreds of civilians were killed, first by the army controlled by Gbagbo and later by the former rebel group that seized control of the country and toppled Gbagbo.

Hours before the ceremony, the United Nations human rights office in Geneva announced that their investigators were headed to a soccer field in an Abidjan neighborhood believed to be the site of a new mass grave.

Inside the presidential palace, Ouattara stood a story above the basement where reporters found more than 500 boxes of rockets in the days after Gbagbo’s capture.

Ouattara raised his right hand and swore to protect the constitution in front of Paul Yao N’Dre, one of Gbagbo’s closest allies who months earlier had used his position on the country’s highest court to overturn Ouattara’s victory.

“In front of the sovereign people of Ivory Coast, I solemnly swear on my honor to respect and faithfully defend the constitution,” Ouattara said. “And protect the rights and liberties of our citizens.”

Source

05/02/2011 (3:10 am)

Buffett says Sokol mess wasn’t his first mistake

Filed under: money, online |

Berkshire Hathaway CEO Warren Buffett says he doesn’t think his reputation has been hurt much by a former top executive’s questionable investment in Lubrizol shortly before Berkshire announced plans to buy the chemical company.

Buffett said Sunday he has made mistakes before and he will make more in the future. Now that the details of David Sokol’s Lubrizol investment are mostly out, Buffett says people can make their own judgments about him.

Buffett says Sokol’s behavior was inexcusable and clearly violated company possibilities.

Sokol, who resigned, denies any wrongdoing.

Buffett says there’s no way Berkshire can be free of problems with 260,000 employees, but the company will try to deal with any misdeeds swiftly and surely.

Source

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