Friday, July 12, 2013

Quebec train disaster: Toll of missing, dead rises to 60

Though terrorism has been ruled out in the train crash that killed at least 15 in Quebec on Saturday morning, officials are examining whether criminal tampering is to blame. NBC's Tom Costello reports.

By Jeff Black, Staff Writer, NBC News

The engineer in charge of the oil train that derailed in Quebec, killing at least 15 people and destroying blocks of a small town, is "under police control." CBC TV reported, citing the railway's president.

Ed Burkhardt, chief of Rail World Inc., parent company of the Montreal Maine & Atlantic Railway, was met by jeers from residents as he spoke at an impromptu news conference in Lac-Megantic on Wednesday in which he said the engineer had been suspended without pay.

?It was our employee that was responsible for setting the brakes on the train ? That employee is under investigation and is not working,? Burkhardt said, CBC reported.

Burkhardt said the engineer was originally believed when he said all 11 hand brakes had been applied on the train, but now there are doubts about the worker's story.

?We think that he applied some handbrakes, the problem is that he didn?t apply enough of them,? Burkhardt said, according to CBC.

The engineer parked the train late Friday night, investigators from the Transportation Safety Board of Canada have said, then went to sleep at a nearby hotel.

A fire was reported on the train later that night by another employee, according to the TSB. After firefighters left the scene the train started to roll downhill, derailed and exploded in a huge fireball Saturday in the town of 6,000 near the Maine border.

The move to detain the engineer came on a day police reported the number of dead or missing in the tragedy had risen to five dozen people.

"The number of missing persons has changed since our last count. We are up to around 60 persons that have been reported to us as missing," police spokesman Michel Forget told reporters, noting that the number was changing every day.

Police are investigating whether the disaster involved foul play or criminal negligence, but Forget deflected questions about potential criminal charges. Forget said any charges were up to Quebec prosectors.

There have been no arrests to date, he said.

Lac-Megantic is about 160 miles east of Montreal and close to the border with Maine and Vermont.

The engineer, named by Canadian media as Tom Harding, lives on a quiet street in Farnham, Quebec, some 90 minutes west of Lac-Magentic, in a two-story stone and vinyl-siding home, Reuters reported. Nobody answered the door at the house on Wednesday.?

Reuters contributed to this report.

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Thursday, July 11, 2013

Smithfield CEO: No meat will be imported from China

NEW YORK (CNNMoney)

Shuanghui's planned purchase "will not result in any U.S. imports of food from China," Pope said in prepared remarks to the Senate Committee on Agriculture, Nutrition and Forestry. "This is about exporting meat products from the U.S. to China."

But the proposed deal has drawn skepticism from lawmakers and industry groups. As is common with high-profile mergers between Chinese and U.S. companies, there are concerns the takeover could be detrimental to American industry, intellectual property and potentially even national security.

Related Story: Is pork a national security asset?

Virginia-based Smithfield Foods (SFD, Fortune 500), the world's largest processor of pork, announced in May that it was being bought by Shuanghui International for nearly $5 billion. The deal is currently under regulatory review by the Committee for Foreign Investment in the United States. A CFIUS review typically is conducted to assess the potential national security effects when a foreign entity seeks to gain control of an American company.

If the merger is approved, it will be the biggest proposed acquisition of a U.S. company by a Chinese buyer. The deal will significantly expand the market for Smithfield products in China but it wouldn't change how Smithfield does business, said Pope in prepared remarks to the Committee.

Shuanghui intends to retain Smithfield's management team, plants, employees and contracts with more than 2,000 hog farmers across the country.

"We have a saying: 'It will be the same old Smithfield, only better,' " Pope said.

Related Story: China's expensive love affair with pork

But other witnesses raised concerns. The proposed takeover of Smithfield could have major implications for the U.S., said Daniel Slane, commissioner of the U.S.-China Economic and Security Review Commission, in prepared remarks.

"Shuanghui is not investing in just any U.S. meat company," he said. Smithfield leads the U.S. pork market, has 25 U.S. plants and employs 46,000 workers, Slane testified. Owning it would give Shuanghui access to technology and intellectual property that could put America's hog industry at a disadvantage domestically and overseas.

If the deal is approved, it could also open the door for strategic purchases of other American food companies by Chinese firms or investors that may not be in the U.S.'s best interest, Slane said. "Today it's Smithfield, but tomorrow it could be Consolidated Grain, ConAgra (CAG, Fortune 500) or Tyson Foods (TSN, Fortune 500)," he said.

Slane also questioned whether the deal would actually increase America's pork exports, since China is focused on becoming self-sufficient in meat production.

And while the U.S. currently doesn't allow imported pork from China, Slane said that if the deal goes through, Shuanghui could eventually press for that policy to be changed so Chinese meat could be imported.

And because imported ham and other such meats aren't required to disclose the country they came from, Slane said, American consumers "would be unaware that these products were imported from China." To top of page

First Published: July 10, 2013: 2:36 PM ET

Source: http://rss.cnn.com/~r/rss/money_news_companies/~3/ZdnBILqR-GI/index.html

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Wednesday, July 10, 2013

Tesla Motors to Replace Oracle in Nasdaq 100, QQQ ETF Next?

Oracle (ORCL) recently announced that the company would be leaving the Nasdaq and will be listed on the NYSE exchange instead. The move represents a big loss for Nasdaq, as Oracle is a key technology firm and one of the largest, most traded securities on the exchange.

By moving, Oracle will also be giving up its spot in the Nasdaq-100 index, the benchmark for the popular PowerShares QQQ ETF (QQQ), as well as the equal-weight versions the First Trust Nasdaq 100 Equal Weighted Index Fund (QQEW) and the Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE).

Currently, ORCL makes up roughly 4.3% of QQQ, enough to put it into fourth place in terms of biggest holdings in the ETF. The product also makes up about 1% in QQEW and QQQE, though its position in these funds is much more variable due to the equal weight nature of the products. Given this, the loss of ORCL looks to have a modest impact on both of these ETFs, as well as the risk reward profile of?each product?(also read The Apple Effect and Nasdaq ETFs).

What will replace ORCL?

It has been announced that a new replacement has been found for ORCL in the key benchmark; Tesla Motors (TSLA). The company, thanks to its incredible surge this year, is now the biggest firm trading on the Nasdaq that isn?t in the Nasdaq-100 Index, making it the replacement pick.

The stock is now trading around the $123/share mark, an increase of roughly 240% since the start of 2013. This gives TSLA a valuation of just over $14.25 billion, making the company an easy choice to replace Oracle in the benchmark (see Three Great Tech ETFs that Avoid Apple).

The change will officially take place?in both the Nadsaq 100 Index and the Nasdaq 100 Equal Weighted Index?prior to the market opening on July 15th.

How will this impact Nasdaq 100 ETFs?

While it isn?t clear at this time how much Tesla will make up of the ETFs, we can speculate based on its current market cap, compared to other similarly-sized stocks. These securities include SanDisk (SNDK) and Netflix (NFLX), both of which receive about 0.4% in the ETF, suggesting that TSLA may receive a similar allocation. However, it is worth noting that this will likely change as ORCL?s rather large allocation gets divided up among the smaller components in the ETF.

?Meanwhile, for the equal weight products, TSLA looks to take up about 1% of the assets in both cases (see Clean Energy ETFs: The Real Bull Market?).

Bottom Line

Some changes are fast approaching for investors in any of the Nasdaq ETFs on the market today. One of the biggest companies in the cap weighted benchmark, ORCL, will no longer be a component leaving a tilt towards smaller cap securities likely. ?Equal weight Nasdaq ETFs will also see big changes as ORCL?s 1% allocation is swapped out for a 1% holding for TSLA (see Alternative ETF Weighting Methodologies 101). ?

Granted, none of these changes are enormous, but they do look to slightly shift the exposure profile for each of the Nasdaq ETFs going forward. Plus, the news could actually be good for TSLA as well, as it could lead to some forced ETF buying of the stock in order to get it up to its proper allocation in each of the three aforementioned funds (currently TSLA has a Zacks Rank #3- Hold).

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Read the analyst report on TSLA

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Read the analyst report on QQQE

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Source: http://news.yahoo.com/tesla-motors-replace-oracle-nasdaq-133153514.html

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Petronas in Talks to Sell Stake in Canada Shale to Indian Oil

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Source: www.ibtimes.com --- Tuesday, July 09, 2013
Malaysia's Petronas is in talks to sell 10 percent of its Canadian shale gas assets to Indian Oil Corp(IOC.NS), sources with direct knowledge of the matter said, mirroring a deal it signed earlier this year with a Japanese company. ...

Source: http://www.ibtimes.comhttp:0//www.ibtimes.co.in/articles/488422/20130710/petronas-talks-sell-stake-canada-shale-indian.htm

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Tuesday, July 2, 2013

Can Democrats like Wendy Davis change Texas?

Since filibustering agains Texas' restrictive abortion bill, state Senator Wendy Davis has been in the national spotlight. Davis defeated a Republican opponent by building a coalition of low-income and minority voters. Some say the tactic could give Democrats an advantage in Texas.

By Chris Tomlinson,?Associated Press / June 30, 2013

Sen. Wendy Davis, D-Fort Worth, is seen during her filibuster of an abortion bill, June 25, in Austin, Texas. The bill will get another chance now that Gov. Rick Perry has called another special legislative session.

Eric Gay/AP

Enlarge

State Sen. Wendy Davis, whose filibuster against Texas abortion restrictions gained her national fame, insists Democrats will be competitive in next year's statewide races but hasn't decided whether she'll be part of the slate of candidates for offices currently dominated by Republicans.

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The Harvard-trained lawyer told The Associated Press she has been fielding congratulatory phone calls from around the world since her marathon filibuster Tuesday that helped run out the clock on the special session and kill the abortion bill. But she hasn't determined if she should seek re-election to the Senate or, as some have encouraged her, aim higher and perhaps run for governor.

Davis said she is concentrating on the second special legislative session that begins Monday, when Republicans will try again to pass a bill that likely would shut down at least 37 out of 42 abortion clinics in the state and impose other restrictions on the procedure.

"When we get through it, and I can lift my head up, and I'm back in my district with my constituents I will have more time to think about (the future)," she said. "I think the more important question is what will the people do with their newfound power? I think Tuesday was a game-changer in Texas."

Since she first defeated a Republican incumbent in a swing district in 2008, Texas Democrats have seen in Davis the charisma and fight needed to win statewide office. But candidates can't win on their own; they need local political clubs to get excited, county-based organizations to guarantee turnout and at least $16 million and hundreds of volunteers to run a campaign in the country's second-largest state.

Democrats haven't won such a race since 1994. Texas ranks 47th in the country in voter participation, and the party can't seem to get more than 43 percent of the ballots.

Changing demographics, though, have given Democrats hope of reviving their party as Hispanics and young people make up a larger proportion of eligible voters. Davis won her district by building a coalition of Hispanics, African-Americans and low-income whites ? groups that, when combined, make up the majority of Texans.

Davis said she dedicated her filibuster to people too often ignored by the Republican leadership.

"Their voice mattered, and they made a difference," she said. "It may be that we go into this next special session and they are drowned out, but I don't think they are going to remain quiet. I think this has engaged the public in Texas who are tired of the leadership they are seeing."

National Democratic activists recognized the potential for change in the state last year and provided funding for a campaign called Battleground Texas. But recognizing the staggering challenge of activating a moribund state party, the group has talked about winning elections for Democrats in 2018 ? not 2014.

Davis' old-school filibuster ? where she spent most of 12 hours standing and speaking ? has strategists questioning whether she has sped up the timeline or if she's too early. So far, no Democrat has announced a candidacy for one of the state's seven statewide offices up for election next year.

Chairman Gilberto Hinojosa, who took over the Texas Democratic Party in 2011, insists the party is ready.

"Women have not always voted for the Democrats, and now they'll see that we are fighting for them and they will vote for us," he told the AP. "People in Texas are taking a look at the ugly face of the Republican Party and taking a better look at the Democratic Party."

But whether they can win in 2014 may depend on whether Davis runs for governor and the party can recruit other Democrats to run as a group for the other six seats.

"Everyone is waiting to see what Wendy will do," Hinojosa said. "If Wendy chooses to run for governor, the line to run with her will be long."

Gov. Rick Perry, who has said he will announce his re-election plans when the legislative session is over and his presidential plans later this year, called the Democrats' strategy a "pipe dream" when he appeared on the Laura Ingraham radio show last week.

"They use that to raise money nationally, but the state of Texas will continue to be a place that believes in freedom," Perry said. "(Democrats) believe in higher taxes, they believe in more regulation, they believe in having litigation that keeps the courts all jammed up."

But Davis said not to count out Democrats in next year's Texas races.

"Democrats absolutely have the opportunity to make a powerful push in 2014, and I will be part of helping make that push happen, whether I'm doing it as a leader, or helping to push it forward in some other way," she said.

Follow Chris Tomlinson on Twitter at http://twitter.com/cltomlinson

Source: http://rss.csmonitor.com/~r/feeds/csm/~3/x4iv4rqAmw4/Can-Democrats-like-Wendy-Davis-change-Texas

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