Friedman Resigns From Federal Reserve

Stephen Friedman, chairman of the U.S. Federal Reserve Bank of New York’s board of directors, has resigned on Thursday. The resignation is effectively immediately.

The Deal Book Blog reports that Friedman’s resignation letter states:

Mr. Friedman said his public service on the board was being characterized as “improper” despite his compliance with the rules. “The Federal Reserve System has important work to do and does not need this distraction,” he said.

The announcement came after it was revealed that Friedman remained on the board of Goldman Sachs, that he holds a substantial amount of shares in that company and that has continued buying shares even after Goldman came under the Federal Reserve’s supervision.

CNN reports:

“Today, although I have been in compliance with the rules, my public service motivated continuation on the Reserve Bank Board is being mischaracterized as improper,” Friedman wrote in his resignation letter. “The Federal Reserve System has important work to do and does not need this distraction.”

In December Friedman brought 37,300 shares of Goldman worth at that time $3 million. Those shares are now worth $17 million according to the Wall Street Journal. He did not check with the Fed about those buys. In January Friedman picked up another 15,300 shares the day after the waiver was granted.

CNN reports:

“With respect to Steve’s purchases of Goldman shares in December of 2008 and January of 2009, which have been the object of some attention lately, it is my view that these purchases did not violate any Federal Reserve statute, rule or policy,” Baxter said in a statement.

Google Goes To the Goats

Google is using an old fashion means to combat forest fires around its campus. They have ‘hired’ 200 goats to munch the grass and create buffer zones that firefighters advise dwellers in wildfire zones.

The company also hired a special shepherd named Jen, a border collie, to keep the troops in line. Not only are the goats working for less than most labourers they provide a constant source of free fertilizer.

Google reports:

“We have some fields that we need to mow occasionally to clear weeds and brush to reduce fire hazard,” Google director of real estate and workplace services Dan Hoffman wrote in a posting on the company’s official blog.

“Instead of using noisy mowers that run on gasoline and pollute the air, we’ve rented some goats … to do the job for us (we’re not “kidding”).”

Of course the goats are not free. It actually costs about the same as traditional mowing would but without the use of gas powered mowers that cause a little more pollution.

The goats are not being used in areas where they could wander into a board meeting demanding more money, instead their are employed for peripheral fields.

CNET reports:

“A herder brings about 200 goats and they spend roughly a week with us at Google, eating the grass and fertilizing at the same time,” a post on the official Google blog read. “The goats are herded with the help of Jen, a border collie. It costs us about the same as mowing, and goats are a lot cuter to watch than lawn mowers.”

Shaw Communications Picks Up 3 Canwest Stations For A Dollar Each

Talk about a good deal, Shaw Communications bought three television stations from CTV for a dollar each in April 2009. The move is not favored by all.

The deal added two A Channel stations, in Wingham and Windsor, Ont., and a privately owned CBC affiliate, CKX in Brandon, Man. to Shaw’s roster.

That news isn’t setting well with some.

Canadian Press reports that Duncan Stewart, director of research and analysis at DSam Consulting in Toronto is one such critic.

“I don’t believe the primary motivation … is that (chief executive Jim Shaw) really wants to run these three TV stations,” Stewart said

“I think he is doing this to embarrass the broadcasters, weaken their argument and put pressure on the CRTC and politicians.”

The move for Shaw to take on the three struggling stations is a bold one and politically based. The CRTC is caught in the middle of the big networks and the cable companies.

Ivan Fecan, president of CTVglobal wants the government to get back to regulating cable rates. The dispute between the CRTC and CTV got heated when Fecan said that it was willing to sell its three struggling stations for a buck each.

Shaw Communications fired back at Fecan with a full-page advertisement in the Globe and Mail taking CTV up on the $1 offer.

Canadian Press reports:

“We believe television has a bright future,” said Canada’s second-largest cable TV operator, which spun off its former radio and TV assets into a separate company, Corus Entertainment, (TSX:CJR.B) several years ago.

“These broadcasters are threatening to cut local newscasts, cut jobs and close television stations,” Shaw wrote in the letter.

“They are holding you hostage demanding a tax on subscribers as a ransom.”

CTV also ran a half-page ad thanking Shaw for making purchases.

The papers aren’t signed on the deal yet says Canwest spokesman John Douglas.

‘We have not heard from them,” said Canwest spokesman John Douglas.

‘It’s interesting that we’ve had a public process to sell our stations – Shaw expressed no interest. But if now they’re prepared to do that, we look forward to receiving an offer from them.”

Shaw couldn’t be reached after the deal was done according to the Globe and Mail. He’s said to have offered to buy up any other stations at the same price that Canwest needs to unload.

“Good for them,” Mr. Fecan said of Shaw. “I’m sure they will live up to the existing conditions of licence placed on these stations, which is wonderful news for the employees and for the people of Windsor, Wingham and Brandon,” Mr. Fecan said.

Station manager Don Mumford from Windsor was caught by surprise with the deal according to 2Canada.

“I’ve seen the various reports in the media as well. I’ve had some conversations with CTV, and — at this point in time — we’re just trying to confirm the seriousness of Shaw’s offer,” Mumford said. “I’m not quite sure where the report from Shaw originated.”

“I’m really not going to be saying anything. I know nothing on this,” he said. “This is beyond my scope, at this point.”

Shaw Communications is based out of Calgary. The company provides transmission of more than 200 television channels.

This month Shaw Communications posted $128 million in profit on continuing operations, including internet provider and digital phone services.

Iggy Pop In Commercial Controversy

Iggy Pop is in the news for starring in a car insurance television commercial that misleads the public in the UK. Iggy is shown golfing and being himself in the ad for an insurance company as an entertainer he couldn’t really be covered by.

The problem is the insurance company refuses to insure celebs because of added risks. Swiftcover’s ad has Iggy Pop stating, “I got it Swiftcovered! I got insurance on my insurance!”

The fact is the singer isn’t nor according to the company’s policies able to be insured.

Chart Attack reports:

“Because the policy was promoted by a well-known musician, which might lead some viewers to believe the policy covered those who worked in entertainment, when it did not, and because Iggy Pop did not have a policy with Swiftcover, we concluded the ad was misleading,” the ASA said in a report.

The company has no intentions of getting rid of Iggy even though the ad was banned by the Advertising Standards Authority (ASA).

Chart Attack reports:

“Iggy Pop and swiftcover.com have made motor insurance interesting for a change, increasing awareness of swiftcover.com and sending our sales soaring by almost a third, so we would be crazy to lose Iggy,” Swiftcover spokesperson Tina Shortle told British newspaper The Guardian.

The £25 million ($36 million) car insurance ad campaign started up in January.

Punk News reports:

According to a Billboard.com report, complaints object that it is “misleading because it uses a well-known figure from the music industry to promote an insurance service which they believe excludes musicians,” according to an ASA spokesperson. As a result, the ASA has launched an investigation to determine whether the ad breaches the U.K.’s TV Advertising Code.

The owner of Swiftcover, AXA UK says that there is no reference to Iggy Pop’s profession in the ad. He was selected because he’s known as a man who lives life to the fullest.

Opinion: Where’s The Money? TTC and Toronto Dropped The Ball

It’s a case of putting the horse before the buggy in Toronto as no money in the coffers may mean no new fancy Bombardier streetcars in two years.

The problem is that when the TTC and Bombardier got the contact all together the only thing missing was the money to fund the project. Oops.

This isn’t high school where Junior can ask Daddy for a few extra million to go to the dance.

Come on I am sure that the TTC has a spare $1.2 billion laying on the tracks hidden away. With only 60 days to find those bills there just may be a bit of a problem.

The price on the table with Bombardier goes away on June 27. If they aren’t happy they can just walk away or they can tell the TTC to cough up more money.

Premier Dalton McGuinty says that those funds weren’t in the budget planning. So where’s the money? The Toronto Sun reports:

“It would have been helpful had we had a better understanding … a more comprehensive list of their priorities,” McGuinty told reporters yesterday.

The folks that could soon be working at the Thunder Bay Bombardier plant hope it can be found.

The Globe and Mail reports:

“I heard the news, I was in Waterloo, ‘Oh the city have said they’re going to do the contract with Bombardier.’ And in the next breath I heard we were paying for it. So that was a bit challenging,” George Smitherman, Ontario’s Minister of Energy and Infrastructure said April 28 at an event on the revitalization of Regent Park, with Mr. Miller just steps away. “I’m little bit perplexed… I’m not really accustomed to operating in an environment where you have an announcement about the acquisition of a product and the entering into of a contract, absent of the financial resources to do that.”

It’s not like the TTC is asking for all the money. So far the piggy bank has $9 million in it. So asking for the one-third rest shouldn’t be a problem, should it?

Chrysler Entering Bankruptcy Protection

President Barack Obama is due to make a statement on the future of the US car maker. Obama has said that the company would become stronger after any move into bankruptcy protection.

Chrysler is entering bankruptcy protection after failing to get their debtors to write off their debts.

The move almost guarantees that the company will be given billions of state loans if they could restructure the business by midnight Wednesday.

Obama is set to speak at noon about the Chrysler situation, appearing with members of his auto task force.

According to sources for the Globe and Mail, the car maker will be gaining $15 billion from both the US and Canadian governments to help Chrysler survive through bankruptcy protection.

On Thursday morning it is expected that the signing of a strategic alliance with Fiat SpA imminent.

Fiat will take a 20-per-cent stake in Chrysler.

The company will be split into two companies with its key Canadian operation placed with the part of the company that will form the basis for the Fiat-Chrysler strategic alliance. Unwanted assets will be placed into another operation.

Yesterday Chrysler released a LLC Statement in Response to UAW Ratification of Contract.

We are thankful to the Chrysler UAW members for their support in ratifying this contract, especially during these challenging times. This was a necessary step as we move forward in revitalizing this great Company. Today’s vote enables us to continue our work to meet the conditions laid out by the U. S. Treasury Department. The entire Chrysler leadership team believes in and appreciates the men and women that make up our great workforce worldwide.”

The members of the United Auto Workers have ratified a settlement deal with Chrysler. The vote was 82 per cent of production workers and 80 per cent of skilled-trade workers in favor.

The agreement will take effect on May 4. This is the last piece of the plan that the company will take to the meeting with the U.S. government to meet with the Thursday restructuring deadline.

A similar agreement was reached this past weekend with Canadian Auto Workers.

The Canadian government is set to have a press conference about this issue at 2 p.m., according to Derek Mellon, media relations at Ottawa headquarters.

This is a developing story, check back for updates

Prime Minister Stephen Harper will make a joint announcement with Ontario Premier Dalton McGuinty today. They are expected to announce that Canada and Ontario will have a two per cent equity stake in restructured Chrysler.

Officials expect that Chrysler to be in bankruptcy for 60 days only. The plan with the federal government is allowing the company to keep 30,000 jobs at Chrysler and its suppliers.

Fiat has agreed to transfer billions in cutting-edge technology to help Chrysler. Also, the United Auto Workers has agreed to further concessions, such cuts to benefits.

National Post to Stop Monday Editions During Summer

Canada’s National Post is going to stop Monday editions during the summer. The decision to stop the Monday edition is an attempt to lower newsprint costs starting June 29. The action will follow for the next nine Mondays.

The company is owned by Canwest.

Canwest is having problems with creditors itself. The company is carrying roughly $4 billion of debt.

Canwest is also considering selling five TV stations and has agreed to sell its stake in sports broadcaster Score Media.

The company owns a chain of daily newspapers in Canada. It also owns the Global network.

Reuters reports:

Analysts have said Canwest could file for bankruptcy protection, but the company thus far has continued to negotiate with creditors rather than involve the courts.

Fans of the Score Network don’t have to fear that its going anywhere.

” We’re not going anywhere,” Chris Suppa, a producer for the Score told Digital Journal.

“Regarding the stock, it’s great for the company long term, being able to invest in ourselves, it makes us stronger. Not many media companies can say they’re experiencing stability, much less growth, but we are,” Suppa said.

The total number of shares that Canwest sold back to Score was 16 million shares.

Veratech Inc. Warned Clients About Swine Flu Outbreak April 6

Veratech Inc. is on the cutting edge when it comes to searching the web for signs of pandemics. The two-year-old company had a hunch two weeks ago that something was up, a week before the CDC and WHO. How is that possible?

“In this rapidly evolving outbreak, early intervention can mean the difference between life
and death for people in countries potentially affected by swine influenza. We want to
provide Veratect’s services to everyone concerned about this outbreak so they can have the
information they need to respond in a timely and effective manner,” said Robert (Bob)
Hart, president and CEO.

The company combines computer algorithms with human analysts to monitor online and off-line sources for hints of disease outbreaks and civil unrest worldwide. Tracking ‘events’ the company ranks them for severity and posts them on their site for the paying clients who want in on early warnings.

In the past week Veratect and other companies that work with the same goal have been getting more clients.

They are able to track information about possible outbreaks by using blogs, online chat rooms, Twitter feeds and news media and government Web sites are full of data that public health agencies to see if there is a potential hot spot, often before the agencies can see a pattern forming.

The swine flu is a case in point. Veratect had posted a report to their clients on April 6 when there was an unusual number of respiratory illnesses in Veracruz, the new known epi-center of the outbreak. They also sent an email to the Centers of Disease Control on April 16 pointing out an outbreak of atypical l pneumonia in Oaxaca state when officials issues an alert.

Yahoo Tech reports:

“Playing the blame game is one of those indicators” that something unusual is going on, said Dr. James Wilson, Veratect’s chief scientist. When the company posted the La Gloria information, it treated the incident as a matter of “moderate severity.”

Of course there are some glitches with the program. Veratect reported that a Canadian lawyer was hospitalized in March with the swine flu after a trip to Mexico. That turned out to be wrong.

Still the company had already given their clients a head up before the world health authorities were on the case in a public way.

Dr. Scott Dowell, who heads the CDC’s international swine flu team, admits that his agency looks at the reports from companies like Veratech while monitoring outbreaks around the world. He says that Veratect is often useful about emerging threats.

Veratech leans towards the business client. They work with corporate, financial services, non government organizations, insurance and government agencies.

Veratect has less than 50 employees but that may be changing. They are actively looking for high-end employees.

The company is on twitter and gives updates often. Recent updates include:

* Spain: Number of confirmed swine influenza cases rises to four; most recent in Bilbao. #swineflu 11 minutes ago
* Costa Rica: Health Minister states laboratory results on a third “highly probable case” will be available soon. #swineflu 15 minutes ago
* Costa Rica: Second confirmed swine influenza case is a 29-year-old male who recently returned from Mexico. #swineflu 16 minutes ago

Paulette Zimmerman, a spokeswoman for the company Veratech answered the following questions for Digital Journal:

Can the average person become one of your clients?

Veratect’s service is geared towards federal and non-government organizations (NGOs) and Fortune 500 companies in a variety of industry sectors. However, the average the person can follow information provided by Veratect on disease outbreak and civil unrest via twitter.

How much does your service cost?

The cost will vary depending on how many reports and organization wishes to receive and the level of monitoring they need.

Do you send your information to public health groups (like the CDC) for free?

For this particular crisis (Swine Influenza), they are sending information for free.

Ms. Zimmerman also sent a pdf. file of James M. Wilson MD’s testimony in front of Homeland Security to Digital Journal.

James M. Wilson MD, Chief Technical Officer and Chief Scientist for Veratech addressed the Home Homeland Security Committee on July 16, 2008 about developing the art and science of timely, accurate, sensitive and specific detection and warning for disease – early enough to do something
about it before it enters the global transportation and commerce grid.

During the winter
of 2006 and 2007, the team issued nearly 3,000 event reports across 128 countries and 27
languages, which included 181 Advisories, 58 Watches, and 38 Warnings. Our team
identified hundreds of reports of a type A / H3N2 influenza virus that appeared to have
drifted away from the current vaccine strain of H3N2 beginning in early January 2007 in
Beijing, China, six weeks prior to the WHO Consultation on the Composition of
Influenza Vaccine for the Northern Hemisphere. We later found similar reports in a
multitude of countries and collaboratively worked with CDC to track this important
finding. The value of this information was validated when the World Health
Organization and its partners recommended a change in the southern hemisphere
influenza vaccine to include an updated H3N2 strain.

Veritech had at the time (2007) an estimated coverage of 82% of the world’s population now, in near real time. By the end of 2008, we will have expanded this coverage to more then 90%. (which they have done so)

The Mountain Equipment Co-Op is considering an Israel boycott

The resolution to boycott Israeli products at Mountain Equipment Co-op is expected to be proposed at the April 30 annual meeting. It is expected that members from British Vancouver Teachers for Peace and Global Education will introduce the motion.

The co-op screens the products that they sell to make sure that the workers are treated ethically.

B’nai Brith Canada expressed concern over reports of the motion, and said it was encouraged by the company’s official position that it does “not divide its supply chain along political lines” and will “not take sides in the Israeli-Palestinian conflict,” according to a news release.

The Calgary Herald reports:

“We just don’t think(MountainEquipmentCo-op)should be doing business with Israel until it changes its behaviour,” said Patrik Parkes, a spokes-man for BC Teachers for Peace and Global Education.

“Many of us are MEC members, and because MEC promotes itself as an ethical company, we believe their actions need to reflect that.”

On the MEC blog a posting deals with the fact that the company is being labeled a hypocrite for buying from China, Taiwan, US, India, Sri Lanka and just about everywhere else outside of Canada.

The company points out that the resolution to boycott Israeli suppliers is not being put forward by MEC or MEC employees. The resolution was table by members of MEC and will be voted on at the annual meeting.

Because the company is a co-op it must protect the right of members to participate in the co-op and allow for their views to be heard.

The company’s position is as follows:

MEC is a Co-op retailer with a mandate to get Canadians outdoor by selling them the right gear and giving them the relevant technical insight. MEC is neither a political activist group nor a human rights body. Nonetheless, we believe business can and should improve the human condition behind manufacturing. To this end, MEC takes a Canadian and international view of our global supply chain. Just as creed and country are not barriers to being an MEC member, we do not divide our supply chain along political lines. In short, we will not take sides in the Israeli-Palestinian conflict. Our human rights efforts are squarely focused on our supply chain—on working to improve the factory conditions and treatment of the workers that make MEC-brand products. As much as this is cowardice to some or a sell out to others, it is our conviction and our intent is to not veer from this belief.

Online Newspaper Readership Grows

As the print news industry suffers online news has grown. Websites that American newspapers operate attracted more than 73.3 million unique users a month in the first three months of this year.

Online newspaper readers average more than 3.5 billion page views per month so far this year. This is an increase of 13 percent over the same period last year.

The one problem that newspapers are dealing with though is keeping advertising revenues up to deal with the increased digital need.

Advertisers aren’t willing to pay premium prices online that they have in the past for print editions.

Losses in ad revenues is the chief reason that so many newspapers have folded in recent months.