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ES Morning Update June 1st 2016

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New falling trendline will be resistance on any rally up today.

MACD's are still going down but could turn up today and allow a move up to that new falling trendline.

Yesterday I thought we might pullback to the green rising trendline but it broke and we fell to 2088 where there was some horizontal support.  Then we rallied back up and got back above that green rising trendline.  This morning we broke it again and have now formed a lower high from yesterdays late day rally back up.  This is setting up to be a triangle pattern, especially if we rally back up again today and hit then new falling trendline.  That might not happen... but if they keep the volume low there's a chance it still will.

The bulls have several things going for them.  One is the double bottom support, two is the longer rising trendline is nearby and three the 60 minute chart is getting "short term" oversold, which might give them a bounce.  But the 6 hour chart (also the 2 and 4 hour charts) support more downside to come as they are just rolling over and have plenty of run to go deeper before they get oversold.  On the upside there's resistance at the 2092-2094 area and on the downside the first support beyond the longer rising trendline is the 2080 horizontal level.

To me it looks like we are in a topping process and will continue to make lower highs.  I think the fear of what Janet Yellen may say on Monday, as well as the overbought larger time frame charts, will keep this market heading down... but it should continue to have these swings until we get the waterfall move down, and that will probably be next week.  My thoughts are that we have some 3 or 5 wave move down in front of Janet speaking, then an ABC up around that day (could be before or after she speaks) and finally a much bigger 5 wave move down that will start breaking lot's of important support levels below.

ES Morning Update May 31st 2016

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Futures went through horizontal support (blue trendline) and double topped over the weekend.  Support is now the shorter rising trendline (in green) and the longer trendline (ending around 2085) as well as the horizontal trendline (in blue).

MACD's are very tired looking on all time frames and want to rollover and go negative.

Hope everyone had a great holiday weekend... and now it's time to get back to fighting SkyNet.  We are clearly at a very tricky point now with a double top and such a bullish looking chart.  I'm sure everyone now is expecting a new all time high, which I can't blame them with the look of the charts.  And we have that new FP on Apple showing 109 and change, which would certainly put market at new highs.  But we've been down this road several times in the past and until it's proven otherwise I have to think this is still just a lower high being made.

Since today is the first day back from a 3 day holiday weekend I wouldn't expect a lot of action.  We kinda look like the 4/20 topping period where we topped, the pulled back slightly and rallied back up later to make a lower high before starting a 40 point drop the following several days.  Janet Yellen speaks next Monday June 6th, so could see pullback in front of that, just based on the "unknown" as traders aren't sure if the Fed's will raise interest rates or not?  Uncertainty is something the market hates, and considering we are at a double top with strong resistance overhead, and overbought to boot, I'd say we have good odds of at least a pullback.

Now... the question after that will be "are we going to go back up and make a new all time high or not?", and I can't answer that of course.  During these times near a new high SkyNet does a really good job of tricking the masses.  So for now I'll look for that break of support as the first clue.  It might not happen until tomorrow though... possibly late today near the close, as I think we'll chop around and work our way over to that shorter rising trendline in green by 4pm.  But I just don't see it breaking on the first trading day back from a long weekend.  I'll be looking closely at how the charts line up late in the day as this morning I don't see much to speculate on.

Simply put, I'm looking for the double top to hold today and a pullback to start.  I won't chase this on the upside if the double top doesn't hold.  I'll just wait for the bearish setup to arrival.  Right now I see no safe trade long or short.

French police raid Google over tax issue; Monsanto rejects Bayer’s takeover bid

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A police car is seen outside the Paris offices of Google as French police carry out a search as part of a tax fraud investigation.
TECHNOLOGY French police raid Google over tax issue
Police raided Google’s French headquarters Tuesday looking for evidence of “aggravated tax fraud,” one of Europe’s most conspicuous attempts yet to cast a U.S. technology leader as a manipulative scofflaw.

The probe reflects European indignation looming over Google and other U.S. tech companies as they amass huge amounts of cash while cutting their tax bills through complex maneuvers that shield their profits.

Google issued a statement Tuesday maintaining that it complies with all laws. The company, owned by Alphabet, also said it is cooperating with the French investigation.

Other major tech companies, including Apple and Facebook, also have been skewered in Europe for scrimping on their tax bills. At the end of last year, the U.S. technology sector had stockpiled $777 billion in cash, nearly half of the $1.68 trillion held by non-financial companies in the country, reported a study by Moody’s Investors Service.

Nearly 90 percent of the cash held by five tech companies is being kept in overseas accounts.

France’s investigation is focused on an Ireland subsidiary that enables Google to do business with customers across Europe while minimizing its taxes, known as profit-shifting. European regulators have been pressing companies to pay taxes in the jurisdictions in which they do business.

An anti-corruption unit and 25 information technology experts descended on Google’s Paris office, according to France’s financial prosecutor’s office. French daily Le Parisien said the raid took place at dawn and involved about 100 investigators.

— Associated Press

ACQUISITIONS

Monsanto rejects Bayer’s takeover bid

Monsanto rejected a $62 billion takeover offer from Bayer as too low, while saying it remains open to further deal talks, putting pressure on the German pharmaceutical giant to raise a bid that has already sent its stock tumbling.

“We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business,” Hugh Grant, chief executive of the U.S. seeds company, said in a statement Tuesday. “However, the current proposal significantly undervalues our company and also does not adequately address or provide reassurance for some of the potential financing and regulatory execution risks related to the acquisition.”

Bayer will likely come back with a higher bid, Jonas Oxgaard, an analyst with Sanford C. Bernstein & Co. in New York, said in a note, adding that an offer below $135 per share would be “challenging” for Monsanto to accept.

Buying Monsanto would create the world’s biggest supplier of farm chemicals and seeds.

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Redstone’s Great-Grandchildren Added to Suit

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Sumner M. Redstone and Phyllis Redstone, then his wife, in 1998.

If you are a Redstone, apparently, you are never too young or too old to be part of a lawsuit.

In new court documents filed Wednesday, directors of National Amusements added Sumner M. Redstone’s two great-grandchildren as so-called nominal defendants to their suit challenging his mental capacity. They also added Phyllis Redstone, 91, as a nominal defendant. She was the first wife of Mr. Redstone, the ailing media mogul. The two divorced after 52 years of marriage.

As nominal defendants, the two children and Phyllis Redstone do not bear any responsibility or fault. They were named in the suit because they are among the beneficiaries of the trust that will control the fate of Mr. Redstone’s $40 billion empire after he dies or is declared incompetent.

The ages of the children are not clear, but both are younger than 6. They are grandchildren of Mr. Redstone’s daughter, Shari Redstone.

Also on Wednesday, lawyers for Philippe P. Dauman, the chief executive of Viacom, and George S. Abrams, a longtime Viacom director, filed a motion with Norfolk Probate and Family Court in Massachusetts to expedite proceedings in the case.

The two men claim in the suit, which was filed Monday, that Mr. Redstone was not competent and was manipulated by his daughter last week when he ejected them from the trust and the board of National Amusements, the private theater chain that controls 80 percent of the voting stock in Viacom and CBS. Lawyers for Mr. Redstone have filed a separate petition in Los Angeles County Superior Court, asking that a judge declare the decisions valid.

Wednesday’s amended complaint included the accusation that Ms. Redstone has “frequently repeated to the Viacom board” that Mr. Dauman should be replaced, as part of her continuing rivalry with him.

In a separate court filing on Wednesday, Mr. Dauman and Mr. Abrams requested a hearing for the earliest available date and that the process of obtaining evidence start immediately.

Rapid legal proceedings were necessary, they said, to protect the assets of the trust and because of what they characterized as the rapid deterioration of Mr. Redstone’s physical and mental health. Mr. Redstone will turn 93 on Friday.

Mr. Dauman and Mr. Abrams proposed that evidence gathering include at least one medical examination of Mr. Redstone and taking the testimony of Shari Redstone. The entire process should be completed within three months, they suggested.

“The substantial assets in the trust are threatened by Shari’s invalid attempt to take over the trust and its controlling interest in NAI,” the motion for expedited proceedings stated, referring to National Amusements. “There can be no doubt that these actions are aimed directly at effectuating control of Viacom.”

Nancy Sterling, a spokeswoman for Shari Redstone, said in a statement, “We are looking forward to an expedited dismissal of this meritless suit.”

Representatives for Mr. Redstone could not immediately be reached for comment.

Mr. Dauman and Mr. Abrams also asked for a trial to be held in no more than four months, or before the end of September. If a judge concurs, that would mean that the Massachusetts proceedings would occur before the Oct. 18 hearing date set for Mr. Redstone’s petition.

Separately, Frederic Salerno, the lead independent director of Viacom put in a new request on Thursday to schedule a meeting with Mr. Redstone. In an email to one of Mr. Redstone’s lawyers, Mr. Salerno outlined an agenda for the meeting: 1. Greetings and pleasantries; 2. A Q&A session on Mr. Redstone’s thought on last week’s board strategy meeting and Paramount; 3. Anything else Mr. Redstone wanted to share; 4. Goodbyes.

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Billionaire Peter Thiel funded Hulk Hogan lawsuit to take down Gawker

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UPDATE: Gawker responded Thursday afternoon, saying Silicon Valley needs a watchdog, and Gawker Media was the right outlet for the job.

"The refusal to engage in public relations or access journalism—the refusal to lubricate the flow of venture capital—is usually the mark of an outlet’s credibility. For Thiel and his peers in Silicon Valley, such a refusal amounts to repudiating their way of life," Gawker wrote.

END UPDATE:

Wednesday was not a good day for Gawker Media: first, a Florida judge refused to reduce the $140 million in damages awarded by a jury in the invasion-of-privacy suit brought by professional wrestler Hulk Hogan against Gawker for posting a sex tape. The judge then refused to order a new trial.

Ars had described the March verdict as a "life threatening" event for the New York-based network of news and gossip sites. Now it has been revealed that Silicon Valley venture capitalist Peter Thiel, who a decade ago was outed as being "totally gay" by Gawker's now-defunct Valleywag site, has bankrolled Hulk Hogan's litigation.

"It’s less about revenge and more about specific deterrence," Thiel told The New York Times. "I saw Gawker pioneer a unique and incredibly damaging way of getting attention by bullying people even when there was no connection with the public interest."

Thiel, whose net worth is estimated at $2.7 billion, cofounded PayPal and invested early in Facebook. According to Thiel's Wednesday interview:

Mr. Thiel said that Gawker published articles that were “very painful and paralyzing for people who were targeted.” He said, “I thought it was worth fighting back.”

Mr. Thiel added: “I can defend myself. Most of the people they attack are not people in my category. They usually attack less prominent, far less wealthy people that simply can’t defend themselves.” He said that “even someone like Terry Bollea who is a millionaire and famous and a successful person didn’t quite have the resources to do this alone.”

Mr. Thiel said that he had decided several years ago to set his plan in motion. “I didn’t really want to do anything,” he said. “I thought it would do more harm to me than good. One of my friends convinced me that if I didn’t do something, nobody would.”

Mr. Thiel has donated money to the Committee to Protect Journalists and has often talked about protecting freedom of speech. He said he did not believe his actions were contradictory. “I refuse to believe that journalism means massive privacy violations,” he said. “I think much more highly of journalists than that. It’s precisely because I respect journalists that I do not believe they are endangered by fighting back against Gawker.”

Gawker now hopes the verdict would be overturned on appeal. Gawker Media's properties are valued at an estimated $83 million.

Judge Pamela Campbell also denied Gawker's request Wednesday to demand Hulk Hogan's legal team provide documents about Thiel's involvement.

The Thiel financing revelation highlights a dark side of litigation financing. There are numerous venture-backed companies that invest in litigation to profit on payouts, especially in the product liability and personal injury fields. But this is the first time we've seen a venture capitalist financing litigation out of what appears to be spite.

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Report: US Nuclear System Relies On Outdated Technology Such As Floppy Disks

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Members of the 320th Missile Squadron missile combat crew, work through a scenario in the 90th Operations Support Squadron's Missile Procedure Trainer on F.E. Warren Air Force Base, Wyo., in June 2014. The MPT is a simulator which allows missile crews to practice contingencies they might face while on alert.

Members of the 320th Missile Squadron missile combat crew, work through a scenario in the 90th Operations Support Squadron's Missile Procedure Trainer on F.E. Warren Air Force Base, Wyo., in June 2014. The MPT is a simulator which allows missile crews to practice contingencies they might face while on alert.

The U.S. nuclear weapons system still runs on a 1970s-era computing system that uses 8-inch floppy disks, according to a newly released report from the Government Accountability Office.

That's right. It relies on memory storage that hasn't been commonly used since the 1980s and a computing system that looks like this:

The Department of Defense Air Force Strategic Automated Command and Control System, as pictured in the Government Accountability Office report.

Beyond the nuclear program, much of the technology used by the federal government is woefully outmoded, the report says. About 75 percent of the government's information technology budget goes toward operations and maintenance, rather than development, modernization and enhancement.

"Clearly, there are billions wasted," GAO information technology expert David Powner said at a congressional hearing Wednesday, The Associated Press reports.

The GAO report found that the Pentagon's Strategic Automated Command and Control System — which "coordinates the operational functions of the United States' nuclear forces, such as intercontinental ballistic missiles, nuclear bombers, and tanker support aircrafts" — runs on a IBM Series/1 Computer, first introduced in 1976.

The system's primary function is to "send and receive emergency action messages to nuclear forces," the report adds, but "replacement parts for the system are difficult to find because they are now obsolete."

Pentagon spokeswoman Lt. Col. Valerie Henderson told The Two-Way via email, "This system remains in use because, in short, it still works.

"However, to address obsolescence concerns, the floppy drives are scheduled to be replaced with Secure Digital devices by the end of 2017. Modernization across the entire Nuclear Command, Control, and Communications (NC3) enterprise remains ongoing."

The report also found that the Treasury Department uses 1950s-era assembly language code (which it says is "a low-level computer code that is difficult to write and maintain") on the individual master file ("the authoritative data source for individual taxpayers where accounts are updated, taxes are assessed, and refunds are generated.") The reports adds that the department has no firm plans to modernize the system.

Likewise, the Social Security Administration relies on COBOL ("a programming language developed in the late 1950s and early 1960s") to determine retirement eligibility and amounts, according to the report. However, there are "ongoing modernization efforts" at the agency.

For years, the U.S. nuclear program has faced "low morale, understaffing and equipment shortages," as NPR's Geoff Brumfiel has reported. He said that in 2014, reports came to light that "three nuclear bases had only one special wrench that's needed to put nuclear warheads on missiles." They had to share the wrench between bases — but apparently each base later got its own wrench.

At the time, Geoff pointed out some of the complications that come with a major weapons system "constantly on alert, but ... very unlikely [to ever] be used":

"Frankly, it's easy for the leadership to forget about the missiles and the people responsible for them. And it's easy for those people to sort of get bored and get themselves into trouble. On top of all this, we have a much bigger problem coming down the road. The weapons themselves are aging. The submarines, the bombers, the missiles — they're all going to have to be replaced."
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Sears is losing its last hope for staying in business

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sears workerSears is in decline.  Sears is imploding.

Sales are continuing to fall and the company's one hope for survival — it's home appliances business — is now in decline.

"This was one of the main areas contributing to the decline – in spite of the fact that across retail as a whole this category grew strongly over the first part of this year," Neil Saunders, CEO of retail consulting firm Conlumino, said in a note on Thursday.

"That Sears is unable to make gains in categories which are growing, and in which it has a more established presence, highlights its main issue: it has fallen out of favor with American shoppers who continue to abandon the chain at a fairly alarming rate."

The department store chain reported Thursday that its profit improved slightly in the most recent quarter due to trimmed expenses, but sales declined 8.3%. Kmart same-store sales dropped 5%, and Sears domestic same-store sales fell 7.1%.

The company said it's now exploring the possible sale of three of its iconic appliance brands including Kenmore, Craftsman, and DieHard.

sears shopperJim Young/ReutersThe Kenmore, Craftsman and DieHard brands “are beloved by the American consumer, and we believe that we can realize significant growth by further expanding the presence of these brands outside of Sears and Kmart,” the company said.

The move could yield some additional revenue for the company, which appeared to please investors. Sears' shares rose more than 4% on Thursday.

But the sale of these iconic brands is an alarming sign for the viability of Sears' retail business.

"It is something of a tacit admission that Sears doesn’t really see much potential to grow these assets within its own retail businesses," Saunders wrote. "This could represent the beginning of the end for Sears as it starts to sell off its 'family assets’ in a bid to ensure that it remains solvent over the medium term."

While Sears considers selling off its appliance brands, rivals like Home Depot and JCPenney are ramping up their investment in the category, which has been growing across the board for most retailers.

Home Depot has been expanding the amount of space in its stores devoted to home appliances, like refrigerators and stoves. The company said sales growth in that category was a major driver behind its 6.5% increase in first-quarter sales.

Meanwhile JCPenney made a massive investment in the space, and started selling home appliances this year after a 33-year hiatus.

After a successful pilot earlier this year, JCPenney will be expanding appliance sales to 500 stores this summer.

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ES Morning Update May 27th 2016

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Above horizontal resistance at 2094.25 from 4/27 prior high.  Support still at the prior 2080 level below.

MACD's are flat-lined giving no clues to the direction.  But overbought on long time MACD's.

My thoughts today are the same as yesterday's post.  That rising trendline of support is now in the 2077 area as I guessed it might be.  It will provide support on any pullback today along with the 2080 horizontal support.  With the extremely light volume expected again today they might just hold it up all where it's at and do the sideways dance to frustrate the bears.  It's hard too know for sure but if it breaks down then we should go to the 2077-2080 level at the most and find support there.  Normally I'd say that's where we are going as that's what the charts say, but extreme light volume overrules the charts as that's when the manipulation comes into play.

I've drawn a shorter rising trendline that in a green-yellow color.  If it breaks (not just a small pierce) then there's better odds of a fall to the support below.  Unfortunately you can see that the end of that rising wedge is around the close of the day... meaning they could just chop inside it all day and not drop out of it until afterhours.  This assumes they don't come up with some quick burst of energy to push through the horizontal resistance in the blue line.  It's hard too know which will play out as the market is too easy manipulate in either direction because of the lack of much volume.  The FP on Apple isn't quick hit yet either, so keep that in mind.

I think we'll chop all day, however we could break the green-yellow rising support line at some point and then go back up later to touch it again... which would just widen the rising wedge.  The move down to 2080 area might not happen to afterhours, which would allow them to reset the charts back to bullish again over the weekend... and then early next week we hit the Apple FP.  That's just a guess on my part as I can give all kinds of technical reasons that we should breakdown out of that rising wedge and head for 2080 today... it's just that they are worthless in a heavily manipulated market like now.  My gut thinks the wedge breaks but gets retested and therefore expanded.

All in all it's probably a day you shouldn't trade as you're likely to get frustrated at the lack of much movement on the downside.  Have a great weekend everyone.

For First Time In 130 Years, More Young Adults Live With Parents Than With Partners

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Men, African-Americans, Hispanics and less educated young people are particularly likely to live with their parents. But across all demographics, more and more people are living with Mom and Dad, Pew found.

For the first time in more than 130 years, Americans ages 18-34 are more likely to live with their parents than in any other living situation, according to a new analysis by the Pew Research Center.

In that age group, 32.1 percent of people live in their parents' house, while 31.6 live with a spouse or partner in their own homes and 14 percent live alone, as single parents or in a home with roommates or renters. The rest live with another family member, a nonfamily member or in group-living situations such as a college dorm or prison.

"Alone/head of household" includes single parents and people who have roommates or renters living with them; "other" includes those living with family members (not parents), with nonfamily members or in group housing.

"Alone/head of household" includes single parents and people who have roommates or renters living with them; "other" includes those living with family members (not parents), with nonfamily members or in group housing.

Pew notes that this is not a record high percentage for the number of young people living at home — in 1940, for instance, approximately 35 percent of people in that age range lived at home.

But back then, living with a spouse or partner was even more popular than that. Today not so: More people choose an alternative living situation, and out of the crowded field of choices, life with Mom and/or Dad has become the top pick for millennials.

Well — some millennials. Men, for starters.

American men ages 18-34 live with their parents 35 percent of the time, and with a spouse or partner 28 percent of the time. For women, the numbers are nearly reversed; 35 percent live with a partner, while 29 percent live with their parents.

Less educated young adults are also more likely to live with their parents than are their college-educated counterparts — no surprise, Pew notes, given the financial prospects in today's economy.

Black and Hispanic young people, compared with white people, are in the same situation.

For black people in particular, the "new" milestone isn't so new at all. Black young adults have been more likely to live with their parents than in any other situation since 1980. Today, 36 percent of black millennials live with their parents, while 17 percent live with a spouse or partner.

Meanwhile, taken as a whole, women, white people, Asian/Pacific Islanders and people with bachelor's degrees are still more likely to live with spouses or partners than with their parents.

But the overall trend is the same for every demographic group — living with parents is increasingly common.

(Young Americans are still less likely to live with their parents than their southern European friends. In Macedonia, more than 70 percent of 18- to 34-year-olds reportedly live at home, Pew says.)

For many millennials, Pew's conclusions might seem both unsurprising and easy to explain: The Great Recession happened, of course!

But the rise in the number of young adults living at home started before the economic crash — and so did the possible contributing factors. Male unemployment has been on the rise for decades, Pew says. Even those who have jobs are making less than they would have in their parents' day — for young men, Pew notes, inflation-adjusted wages have been falling since 1970.

And then fewer young people are married than in decades past. Even accounting for the increased popularity of cohabitation, there are just fewer paired-up 20-somethings and 30-somethings than there used to be.

In general, the study shows how dramatically the living situations of 18- to 34-year-olds have changed since 1880, when the data begin.

Living alone, as a single parent, or with roommates — once a rarity — is now the choice of 14 percent of people in that age group. And a full 25 percent of young men are now living with other family, nonfamily or group quarters.

Male prosperity rose steadily, and more and more men left the nest — until the '60s and '70s, when wages started to drop and more men stayed home.

And women? For decades women who worked were more likely to live with their parents than with a partner or spouse — because wives were discouraged from having jobs, per Pew's straightforward interpretation.

But now more and more young women have jobs, and it's unemployed women who are more likely to live with their parents. And yet, even as female prosperity rose, so did the number of young women living at home.

Pew speculated it might because of men's lower earnings keeping women from marrying and moving out. Seem plausible? The question might make for a fruitful conversation in households across America tonight ... just ask Mom to pass the peas and the theories.

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The long legacy of the floppy disk

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American missile in silo The Pentagon is not alone in still using floppy disks but unique in using them for its nuclear missile fleet

The technology world may seem to be locked in an endless cycle of renewal - but not when it comes to the floppy disk.

More than 50 years after the technology was invented it has emerged that the US nuclear weapons force uses the disks in the 1970s computer system it still employs.

As it turns out the Pentagon is not alone in retaining an affection, sometimes born of technical necessity, for the humble disk. But why has it survived when so many other technologies have fallen by the wayside?

"They are just too useful," said Ian Rainsford, a spokesman for media firm Verbatim - one of several companies that still makes the disks.

In some industries, floppy disks are used in machines that sit on production lines and those chunks of industrial plants are unlikely to be shut down, changed or updated any time soon, he said.

"A lot of the industrial uses would be things like knitting or crocheting machines, CNC lathes and milling machines and precision cutters," he said.

"The machines driving production have remained the same and the company that developed the original equipment may well have gone out of business," he said.

"They certainly believe that if it isn't broke, don't fix it." he said.

What has changed is the volume of disks Verbatim now produces. It only turns out "thousands" of disks per month, he said, far less than the millions it cranked out in the mid-90s when the technology was ubiquitous.

But, he said, for the customers that do use them they are essential to keep that business going.

"The death of the floppy disk has been heralded many, many times," said Mr Rainsford. "I think once Microsoft started shipping Windows on CDs it was sounded for the first time and that was 21 years ago."

Safety systems

For Kevin Murrell, a director of The National Museum of Computing at Bletchley Park, it is no surprise that floppy disks, and the computers that use them, have stuck around.

"It's a good thing," he said. "It's a good, old proper technology that actually works and is proven.

"We regularly read floppy disks from 40 years ago and they are as good as new," he said.

"Magnetic tape has a real issue because when it is on the reels you have a lot of different layers so you have 'print through'," he said. "This involves the shadow of data on one section of tape being superimposed on the layer above and below. The interference means data quickly gets harder to read.

"We all thought that putting data on CDs would last for ever but that idea went out of the window a long time ago," he added.

And the history of technology is littered with short-lived storage systems, such as Jaz drives and zip drives, that are now obsolete.

By contrast, said Mr Murrell, a floppy is a much more reliable data storage format.  Swapping out computers that control safety systems can be a difficult job

He added: "8in and 5-and-a-1/4in disks are usually a very safe bet."

The same can be said of the computer systems that still use them. More often than not, he said, those older computer systems are running some very sensitive and significant installations such as power stations or air traffic control systems.

These "safety critical" computer systems are built for purpose and would take a huge amount of time and effort to update. As a result, many stay in situ for decades.

An example of this was the Marconi TAC machine used to monitor the reactor at the Wylfa nuclear power station in Anglesey for 38 years. It used 8in disks and was turned off in 2004.

Old machines running computer code written decades ago sit behind the apps and websites of many modern services and sites, said Mr Murrell.

"Occasionally it comes out that software in banking systems is written in Cobol and is 30 years old, but it is still used because it is reliable and still works," he said.

"Would you rather have a system that is proven to work or a machine running Windows 10?" he asked.

Hunting parts

James Bailey, a director at Hyperscale IT which helps firms find parts for old computer systems, said many organisations were running servers and software that was more than a decade old.

"It's a bit like running a vintage car, all the parts are out there in junkyards," he said. "It's just a question of finding them."Many PC makers stopped putting floppy drives into computers years ago

Hyperscale helps firms source power supplies, memory modules and other components to keep those ageing servers going to maintain the services they support.

Companies and other organisations stick with legacy kit because it works and because the time and money they can spend on coding and development is finite.

"If you decide to move that legacy to a new computer system you might miss the chance to innovate in another part of the business," he said.

Firms are often reluctant to spend money updating something that works because the end result will not progress the business.

"If you do update, then you'll end up in the same place at the end of all the work."

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Amazon’s Expanding Fulfillment Network

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There aren’t many decisions in online retail that depend on smart geographic selection and rent negotiation, but determining where to set down fulfillment centers is one of them. Amazon is a world leader at it, though, which is why more warehouses under the Amazon banner shouldn’t come as a complete surprise to anyone.

Amazon announced on Wednesday (May 25) that it would launch three new fulfillment centers. Two of the warehouses will be located in California — in the towns of Tracy and Eastvale, to be exact — with the third landing in Joliet, Illinois. Both the Tracy and Eastvale centers will clock in at about 1 million square feet and will bring upwards of 1,500 jobs, while the Joliet facility should measure around 700,000 square feet and will add 2,000 workers to pick, pack and ship the Midwest’s purchases.

“We are excited to continue our rapid growth in California in order to serve customers with super-fast shipping speeds and vast selection,” Akash Chauhan, vice president of North American operations at Amazon, said in a statement. “Since we first broke ground in California four years ago, we have found a network of support from community leaders to statewide officials, a dedicated workforce and fantastic customers.”

According to Internet Retailer, these three new fulfillment centers bring Amazon’s physical footprint in the U.S. to 76 full-sized facilities. Another 85 smaller warehouses focused on sorting and connecting shipments to other destinations flesh out the company’s corporeal presence, which is growing larger than many brick-and-mortar retailers can claim for themselves.

That’s all in addition to a rumored 19 fulfillment centers that should be up and running in the near future.

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Cheap gas, lower airfares will spike summer travel

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More Americans appear poised to kiss the "staycation" goodbye this summer.

With the coming of the Memorial Day holiday, more vacationers are likely to head out of town to take advantage of cheap gas, falling airfares and strong employment. After vacations being stuck at home, there are bigger incentives to hit the road.

“The 'staycation' is out, the road trip is in – and for good reason,” says analyst Patrick DeHaan of GasBuddy.com, the gasoline-price tracking web site.

AAA is projecting that 35 million people will travel this Memorial Day weekend -- about 700,000 more than last year. And with gasoline prices at their lowest level for this time of year since 2005, cheap gas is fueling the rush.

Americans have already saved more than $18 billion on gas this year, compared to the same period in 2015, AAA spokeswoman Julie Hall said. GasBuddy is projecting a 2.2% increase in road-trippers this summer, with national prices averaging $2.29 per gallon on Memorial Day and $2.15 per gallon from June through August. And a GasBuddy survey says that more than 56% of those driving to their vacation destinations will travel at least 400 miles round trip,

Cheaper fuel is also contributing to lower air fares. Travel booking site Orbitz says the average plane ticket to its top ten destinations costs 10% less this summer than it did last year.

“We’re definitely projecting a strong travel season,” Hall said. “People have extra income in their pocket, so they’re looking to spend that on travel.”

Of the 75% of Americans that Orbitz expects to travel this summer, eight out of 10 will stay stateside.

But while the journey itself might cost a little less, vacationers may have to pay more once they arrive.  Average hotel prices in Orbitz's top ten destinations are up 17% for the summer.

A few vacation spots have spiked considerably. Miami hotel prices leaped 23% to an average of $189 per night. Chicago rose 21% to $234 and New York increased 18% to $297.

“Where people may say ‘Great, these airfares look fantastic,’ they’re going to say, ‘How am I going to save on my hotel room?’” Orbitz spokeswoman Jeanenne Tornatore said.

To save travel cash this year, Orbitz recommends:

•Bargain destinations. Caribbean and Mexico are good deals this year. “Travelers looking for an international getaway are taking advantage (of) this and booking to these destinations,’’ Tornatore said. “And we haven’t seen any effect on our bookings due to Zika,’’ she added, referring to the mosquito-borne virus which can cause severe birth defects.

•Fly the cheapest weeks.  The first weeks of June and July and last week of August tend to be cheapest weeks to fly, according to an analysis of past trends. Travelers wanting to get out of town for Fourth of July weekend, the summer’s most traveled holiday, might want to book the trip in the first week of June to score the best deal.

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Delta adding staff, funding to ease summer security lines

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ATLANTA, May 25, 2016 /PRNewswire/ -- With summer quickly approaching, Delta Air Lines' (NYSE: DAL) 80,000 employees worldwide are helping to ease long security lines and serve both seasoned and first-time travelers.

Earlier this year, Delta and the Transportation Security Administration began collaborating to take steps to improve the security process at the national and airport levels. As a result, the airline is investing up to $4 million in additional staffing at 32 airports across the U.S. to supplement TSA staffing. Delta also invested nearly $1 million in the research, development and implementation of two new checkpoint lanes at Atlanta's Hartsfield-Jackson International Airport. The redesigned lanes, which opened this week, are expected to increase throughput.

In a memo to Delta employees Wednesday, Chief Operating Officer Gil West thanked the team for their efforts to prepare for the busy summer operation as well as their operational performance to date.

"We can't stop pushing forward," West said. "Your work has set Delta apart from the pack. We are delivering unprecedented performance and we need your help to keep it going through the busy summer months. We want our customers to have a seamless experience from check-in to pick-up. To ensure this, we partnered with the TSA months ago to get a plan in place to support the increased customer volume."

Four things the airline is doing to help reduce TSA line wait times include:

  • Staffing up – Providing staffing support at TSA checkpoints for tasks that will free up TSA inspectors to open additional checkpoint lanes at peak where possible or improve throughput. Delta intends to deploy employees or vendors in areas to manage lines, bins and other non-screening tasks. DELTA IS providing nearly $4 million in staffing solutions.
  • Thinking differently – Lending subject matter expertise from industrial engineers and other areas to make recommendations on queue design and how checkpoints could be redesigned for a more optimal flow and ease of movement.
  • Innovating – Redesigned, at Delta's expense, two checkpoint lanes at Atlanta's Hartsfield-Jackson International Airport. These lanes, a nearly $1 million investment for Delta, opened Tuesday and are expected to increase throughput.
  • Giving customers a choice – Partnering with CLEAR to provide complimentary enrollment to Diamond Medallions and preferential pricing to SkyMiles members for expedited document check-in and biometric verification for priority queuing at hubs this year.

Additionally, Delta has created a video for customers noting travel tips provided by an Atlanta-based Airport Customer Service Employee.

Since Delta implemented supplemental staffing in early May, the airline has seen a 10 percent increase in throughput at TSA security lanes. Further shortening wait times, Delta's staffing support at 32 airports has allowed TSA to open nearly 30 additional lanes across the U.S. that would have gone unstaffed.

About Delta

Delta Air Lines serves nearly 180 million customers each year. In 2016, Delta was named to Fortune's top 50 Most Admired Companies in addition to being named the most admired airline for the fifth time in six years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented five consecutive years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 330 destinations in 61 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading transatlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK and LaGuardia, London-Heathrow, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground. Additional information is available on the Delta News Hub, as well as delta.com, Twitter @DeltaNewsHub, Google.com/+Delta, Facebook.com/delta and Delta's blog takingoff.delta.com.

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Why Uber Wanted to Make a Deal With Toyota

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Toyota Lexus Highway Teammate

A prototype self-driving Lexus underwent testing on a Tokyo highway last fall. Might Toyota agree to build a fleet of self-driving Lexuses for Uber? That's one question following the two companies' announcement of a new partnership. Image source: Toyota

More details are emerging about the surprising deal between Toyota (NYSE:TM) and Uber. The two companies announced a partnership on Tuesday that included a Toyota leasing program for Uber drivers and an investment by Toyota in the Silicon Valley ride-hailing giant.

The announcement was short on specifics, including the size of Toyota's investment. But new reports on Wednesday have shed more light on that question, as well as on Uber's motivations for seeking a partnership with a global automaker.

How much did Toyota invest in Uber?

Citing "a person knowledgable about the matter," The Wall Street Journal reported on Wednesday that Toyota's investment in Uber is less than $100 million. That's well below the $300 million that Volkswagen (NASDAQOTH:VLKAY) invested in European ride-hailing firm Gett, or the $500 million that General Motors (NYSE:GM) invested in Uber's main U.S. rival, Lyft, not to mention the $1 billion that Apple invested in Uber's global arch-rival, Chinese ride-hailing giant Didi Chuxing.

What does Toyota get out of the deal?

In the near term, Toyota gets to lease vehicles to Uber drivers under a new program that will be operated by the automaker's financial arm. The program will be offered in the U.S. and some overseas markets -- but not in Japan, according to the Journal report. It will launch sometime in the second half of 2016.

The leasing program will give Toyota added business in urban markets. Toyota is fairly strong in urban markets in the U.S. -- but GM isn't, and part of Toyota's motivation for making the deal may have been to block GM from taking on the business of leasing to Uber drivers. GM is setting up a similar program with Lyft, but Uber has many more drivers in U.S. cities.

Toyota also gets a foot in the door of the fast-growing ride-hailing industry. While it isn't expected to get a representative on Uber's board, nor any say in its management, the company is expected to use the partnership to learn more about the market for ride-hailing and the operational aspects of the service.

What does Uber get out of the deal?

Probably not as much as it wanted, at least right now.

A Recode report on Wednesday added some perspective on Uber's view of the deal. Over the last year, according to the article, Uber approached a number of automakers and self-driving technology companies about potential partnerships, including both GM and self-driving start-up Cruise Automation, which was recently acquired by GM.

It's well known that Uber CEO Travis Kalanick has long sought to develop self-driving cars in hopes of eventually automating much of Uber's service. The company has been developing its own self-driving system, and recently showed off its first self-driving test car.

Uber

Uber's first self-driving test car is a Ford Fusion. Will the next one be a Toyota? Don't bet against it. Image source: Uber

Uber has also been looking for a partner to help it advance its self-driving efforts for at least a year, holding talks with Ford (NYSE:F), GM, and possibly other automakers. But according to the report, most potential partners weren't interested: Apparently, Kalanick was seeking a partner that would be willing to manufacture self-driving cars for Uber that carried its branding instead of the automaker's.

Kalanick's talks may have extended well outside of Detroit. In March, Germany's Manager Magazin reported that Uber had approached Daimler's (NASDAQOTH:DDAIF) Mercedes-Benz unit in hopes of ordering a huge fleet (a "six-digit number") of Mercedes-Benz S-Class sedans equipped with self-driving technology for delivery around 2020. Reuters subsequently reported that Uber had approached several automakers, not just Mercedes-Benz, about a potential order for a huge fleet of self-driving cars.

So will Toyota build Uber a fleet of self-driving taxis?

The press release announcing Uber's new partnership with Toyota made no mention of joining forces on self-driving research beyond a general statement about "sharing knowledge and accelerating their respective research efforts." It certainly didn't hint at any potential arrangements to produce an Uber-branded self-driving vehicle. Indeed, from what we know about it now, it's a very Toyota-style deal: a small investment in return for a learning opportunity.

It's possible that the partnership will expand later. It's also possible that Toyota, like its Detroit competitors, isn't interested in folding its latest self-driving technology into Uber-branded cars. If that's the case, Uber's quest for an automaking partner might not be over.

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Private investigator claims ethical breaches by Casey Anthony lawyer

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New court papers suggest discord between a private investigator and the attorney representing Casey Anthony, the Florida woman acquitted in 2011 of her daughter's murder, according to media reports.

The investigator, Dominic Casey, said in court deposition documents related to Casey Anthony's Chapter 7 bankruptcy filing in Florida that Jose Baez, the attorney who represented Anthony, told him that Anthony admitted to killing her daughter, according to reports in the Orlando Sentinel, Fox News, and PeopleMagazine. The documents are filed with U.S. Bankruptcy Court, Middle District of Florida, Tampa Division, and are dated April 25, 2016.

Casey also claimed in the deposition that Baez had a sexual relationship with Anthony, a claim that Baez vehemently denies.

"I unequivocally and categorically deny exchanging sex for legal services with Ms. Anthony," Baez wrote to People. "I further unequivocally and categorically deny having any sexual relationship with Ms. Anthony whatsoever."

Casey worked with Baez in 2008 after Casey Anthony was arrested for child neglect following the disappearance of her 2-year-old daughter, Caylee Anthony, on July 5, 2011. Dominic Casey's affidavit is dated Dec. 15, 2015.

On July 26, 2008, the investigator claimed, Baez told him that Anthony murdered her daughter and "dumped the body somewhere and he needed all the help he could get to find the body before anyone else did."

Dominic Casey also wrote of an incident in which he arrived unexpectedly at Baez's office and found Casey Anthony there, naked. Anthony ran out of Baez's private office through a conference room and into a hallway, Dominic Casey wrote. It was not an isolated incident, he wrote.

Casey "told (Anthony) that she cannot allow (Baez) to continue engaging in this behavior," the investigator wrote in the affidavit. "Casey told me she had to do what Jose said because she had no money for her defense."

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ES Morning Update May 26th 2016

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Might have topped yesterday for the wave 3 up and now in some ABC pattern for the wave 4 down.  Support still at the 2080 area.

Overbought on all the time frames.  This 60 minute chart is trying to reset but it should only make a lower high on any move back up.

Looking at the charts today and adding in the fact that we are going into a 3 day holiday weekend, with Monday being closed for Memorial day, I say we'll just chop around between the 2080 support and the current high today and Friday.  I'm not sure if the wave 3 up topped yesterday or not but if we make another higher high today I think that will be it for that wave 3 up.  Then the wave 4 down will likely be some kind of ABC pattern I'd guess.  Whatever pattern it takes I don't see a lot of downside on it.  By the close Friday the new rising trendline that's at 2067 right now will probably be up around 2077, or just a hair under the 2080 horizontal support.  The wave 4 down might end there and put off the wave 5 up until next week.

If we don't make an higher high today then we are likely already in the wave 4 pullback.  Again, it might last until Friday I just don't see them allowing the market to tank in front of a holiday weekend.  Also, we know we haven't topped yet as the FP on Apple hasn't be hit... which might not hit until early next week if we pullback a little today and tomorrow.  Pay close attention to it as when it's hit I think the market will be topped.  So if that happens today then the small pullback in the ES Futures last night and the run back up this morning could be the wave 4 down and 5 up?  Seems pretty short in time for that to be the case but it's possible.  If that happens then we should be starting the next big down move tomorrow, but I still don't expect that 2080 area to break... maybe pierce it small, but nothing big on the downside in front of this weekend.

Also do note that we close at 2pm Friday instead of 4pm for the holiday.  And Janet Yellen speaks at 1:15pm, which "could" mean something?  I could see them announcing bad news right before the close, going into a 3 day weekend, so they can spin it as nothing over that long period with their propaganda media machine.  I still don't plan on shorting over this weekend but this could be something important that spells the top for the market this week and the start of the 12% correction next week.

ES Morning Update May 25th 2016

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7986b472-48b6-4c7d-b509-cd6ed80768d1

Pierced through the 2080 horizontal resistance overnight, and now that level will act as support.

The MACD's on the 2, 4, and 6 hour charts are all overbought now and this 60 minute chart is trying to reset to turn back up.

Ok, we've reached the first hard spot for the bulls and they pushed through it.  I speculated yesterday that this we'd make the whole move up to the 2080 level inside a wave 3 and not have the pullback before it's hit.  That turned out to be accurate as clearly you can see we haven't had any decent 10 or more point move down yet.  The wave 2 pullback was from the 2056 high on 5/23 to the 2041 low on 5/24, and that's where this wave 3 up started.  It should end today I think and have a wave 4 pullback.  But, I doubt if we pullback 10 points or more like the wave 2 did.  I think this time it will be a sideways move so they can hold the 2080 level as it's now support.

My guess is that they will try to push up a little more early in the day (not much) and then tire out and float sideways to down the rest of the day, but holding the 2080 level.  So today could be another boring day.  After the wave 4 is done we have the wave 5 up to finish this series of waves from the 2022 low.  That might take is right into Friday from the looks things.  Then the 3 day weekend to keep everyone guessing about next week.  If all goes well then everyone will be massively bullish and the bears will be asleep again.  Then you'll have your answer as to what's coming...

ES Morning Update May 24th 2016

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Breaking out of the triangle now, but could backtest it and then continue back up.

MACD's on this 60 minute chart pointing up and the 2, 4, and 6 hour charts are also pointing up, suggesting a nice rally could start today.

Yesterday near the closed I posted another chart suggesting we might drop out of the triangle overnight (which we did) but I expected it to recapture it by the open (which it did).  So far, all is going as expected.  It doesn't always work like that of course last week was tricky but we survived it.  This week is behaving nicely as the bulls are "usually" easier to predict then the bears.  Assuming we breakout of this triangle we could briefly backtest it with a small pullback but after that (if it happens) I'd say we are on our way up as many short term charts are aligning together to support a nice strong move.

There's horizontal resistance at 2067.50 from a prior top, then 2072.50 and finally the 2080.00 top.  I don't think we'll take it out today but we might test the first or second horizontal resistance levels.  The 2080 level though might not be broken until later in the week.  If we get up to it in one straight long move up (either today or tomorrow) without any real pullback (10 points would be enough) then I'd have to think the move up was some kind of wave 3 with the wave 1 up from the 2022.00 low to the 2055.50 high, and the wave 2 down from there to the 2041.25 low.  This suggests a wave 4 down and a wave 5 up through the 2080 level would follow (again, only if we have no real pullback from here until we hit 2080).

To sum it up, I expect the move up to start today with a final top to be above the 2080 level and most likely below the 2095 level.  This might take until the end of this week, but today looks to be the day of the wave 3, which "should" end around the 2080 level if my forecast of breaking through it is accurate?  Then a 10 or point pullback for the wave 4 down and a nice push up through 2080 to clear out the bears' stops' and complete the 5th wave... which then should have all the sheep calling for new highs and the bears back in their caves asleep.  Only then will you know the top is in...

Sports Authority strikes out

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135636330545497.bMzn9uiEYomgRRRZkzVq_height640Sports Authority has officially struck out. After filing for bankruptcy protection 3 months ago, the sporting goods retailer will be shuttering all 460 of its stores, according to a court document obtained by The Associated Press.

Sports Authority had initially planned to close about 30% of its stores in a restructuring, but now plans to shut them all down. The court filing says going-out-of-business sales will start around Wednesday of this week and may continue through August.

The company reportedly intends to sell its store leases in an upcoming auction.

Online shopping presents tough competition

Sports Authority has struggled to stay afloat as more athletic-minded shoppers head to the internet for convenience, deals and discounts. In March, when the  company filed for bankruptcy and initially said it would close 140 of its brick-and-mortar stores, CEO Michael Foss blamed an increase in online shopping.

“We are taking this action so that we can continue to adapt our business to meet the changing dynamics in the retail industry,” Foss said at the time. “We intend to use the Chapter 11 process to streamline and strengthen our business both operationally and financially so that we have the financial flexibility to continue to make necessary investments in our operations.”

Sports Authority is far from the only retailer grappling with fierce competition from online shopping. Earlier this month, department store giants including Macy’s, J.C. Penney’s and Nordstrom reported dismal first quarter earnings, and sporting goods chain City Sports filed for bankruptcy last year.

Here come the closeout sales

Shoppers looking to stock up on athletic shoes, workout gear or sporting equipment should make plans to take advantage of Sports Authority's upcoming closeout sales. Currently, the retailer’s website is littered with deals advertising the chain's "biggest BOGO sale of the season" and "50% off Memorial Day deals."

But consumers should hold out a few days to take advantage of the best sales.

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Lyft is testing a way to schedule rides in advance, but right now it’s only for employees

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lyft

Lyft is going where Uber has not gone before: letting users schedule rides in advance.

But there are still lots of questions to be worked out before this is introduced to actual Lyft passengers.

The experiment will let Lyft employees schedule a ride up to 24 hours in advance. In the app, there will be an option to hail a Lyft now — the way the service is currently used — or schedule one for at least 30 minutes later.

But, the drivers themselves won't be booked in advanced. Instead, when a rider sets a ride for 1:30 p.m. for example, a normal request for a ride will go out a few minutes before.

It's a feature that many riders would love to have, but companies like Uber and Lyft have been hesitant to offer advanced-scheduling because of how it would affect surge pricing.

Lyft employs its own version of surge pricing, called Prime Time. Normally, if the demand is too high, riders are charged a multiple if they want to request and drivers are incentivized to come online.

This system could become a problem if you're trying to book in advance. Lyft wouldn't say whether it will charge its employees the higher Prime Time price when they request or when they're picked up. It's testing multiple scenarios for the best interest for its riders and drivers, a spokesperson said.

Deciding on Prime Time will matter a lot to riders in the future if they request a $20 ride only to find that the Prime Time triples it to $60. The same goes for drivers: They may not be incentivized to pick up a scheduled rider if they're paying a cheaper price because the surge pricing doesn't apply.

For now, scheduled rides is just a limited test to the company's San Francisco employees, but Lyft will have to work out the logistics of ensuring fair pay and pricing before it rolls it out to everyone else.
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