News Commentaries

[Multiple Blogs]

HP’s new boss and a

disastrous deal

Comment

Hewlett Packard Vs Autonomy:

I am not surprised that Hewlett Packard is now pursuing the former owners of Autonomy through US regulators and Courts to remedy what are clearly their own failings in basic business decision-making. Furthermore, though I am not preempting their outcome, I hold very little faith or confidence in that process, judging from how American regulators have been extorting huge sums of money from UK-based businesses, especially banks, in recent years.  Look at what is happening to BP; haemorrhaging cash at a rate that no multinational corporation has ever suffered and survived, they may end up with a bill in excess of $50 billion. The sums suffered by BP and our banks far exceed the gravity of their ‘sins’, if any.  

People who make a wrong commercial judgment should not expect the Courts to remedy their loss.  In the case of Guy Hands Vs CitiGroup; where they claimed to have overpaid on the acquisition of EMI, they subsequently lost the case and were forced to dispose of the asset, compounding their loss.  Royal Bank of Scotland deliberately overpaid to outbid Barclays in the acquisition of ABN-Amro; this was a reckless and greedy transaction that later rendered RBS insolvent and had to be taken-over by the State.  Though the law suits against Facebook’s $100 billion IPO is not strictly a case of direct business acquisition like the ones referred to already, it follows the same pattern of people complaining only after buying and sustaining at a loss.

 Meg Whitman, the new boss of HP will be better advised to concentrate her energy on rebuilding the company from scratch than pursuing an unjust and wasteful witch-hunt that has no merit.

 

Cameron and Merkel 'agree to work together' on EU

Comment

David Cameron’s family visit to Angela Merkel at her country retreat is a PR coup for both parties.  It clearly shines a favourable light on the Prime minister, but may not be enough to appease his eurosceptic parliamentary colleagues.  Similarly for Mrs. Merkel who is facing elections later in the year, such advert will resonate well with many Germans amidst growing whispers of resentment that Germany is becoming a sugar-daddy whose money is propping up the rest of the Eurozone.  Definitely the PM knows that he can no longer hope to materially change the direction of European integration, but the symbolism of his visit is equally significant.  

In about 2 year’s time, all things being equal, I must hastily add, the PM will be seeking another mandate from the British people.  British voters are intelligent enough to judge that this PM has already delivered much from a very restricted position; struggling with a coalition government with its inherent limitations and at the same time trying to rescue an ailing economy which he inherited.  There was a great old sage that says: ‘To whom much is given much is required’.  But in the case of PM Cameron the converse of this sage should apply: ‘To whom few is given few will be required’ – So expecting the PM to perform miracles with what is in effect a minority government is like asking an athlete with one hand tied to his back to outrun Usain Bolt. 

The PM should remain true to his conscience and convictions and, in the meantime try to optimize with the resources available to him.  Among the many tributes paid to Baroness Thatcher, the words of Sir Malcolm Rifkin best supports my argument that the PM should not try to be all things to all men, but should follow his convictions.  Sir Rifkin recalled one occasion when the then Prime minister Thatcher was asked if she believed in consensus politics, she replied: ‘Yes, I do believe in consensus: There should be a consensus behind my convictions’.

So, with disloyal Tory parliamentarians exploiting the PM’s lack of majority at every turn, his Lib-Dem coalition partners threatening to withdraw support if they don’t have their way, and UKiP intent on splitting the conservative party, there is clearly no way the PM can expect to keep everybody completely happy.  But you never know, 2 years is long time in politics; between now and 2015 when the next election is due any thing can happen.  At a point in Margret Thatcher’s 1^st term as Prime minister she was so low in the polls that she was not expected to win a 2^nd term, but she went on to win 3 terms.

Finally, I just hope the PM and Chancellor Osborne will carry on with their policy of economic discipline because, to my mind, there is no third way.  However, in the meantime, the PM should not allow the controversies surrounding the EU to distract him from the more urgent work at hand.   

     

        

Public Opinion

What do you think?

‘I'm keeping all four!' What this courageous mother replied when doctors said: Sacrifice two of your sons to save the others

Doctors don’t know all; Follow your instincts

The miraculous story of Emma and her husband Martin started about 2 years ago in Bristol.  She was pregnant and went for the usual checkup at 12 weeks when she was told that she was carrying 4 babies which was conceived naturally at a mind bugging odds of 750,000 to 1.

When she went for her next routine checkup, to her further surprise she learnt that of the quadruplets; 2 were identical twins.  But there ended the sweet stories as the consultant explained the dangers inherent with such level of multiple births and recommended that she either get rid of 2 of the babies or terminate the whole pregnancy.  After discussing with her husband they resolved to carry on with all 4 babies.

On her 20^th week checkup she learnt that all the 4 kids were boys.  Here then comes her final temptation; for after this week she must live or die by what ever she decides now, she can’t change her mind after that date, said the consultant.  As this is the last time a termination or selective reduction would be possible she found herself in an impossible dilemma, she thought; ‘ If I abort 2 to save 2, then each time I looked at my surviving babies I’d also be thinking about the ones I’d lost.  The thought of it broke my heart’.  She however decided to soldier on, what ever.

Financially, how will she and her husband cope?  God will provide, she believed.  Last month the 4 bubbly, happy and healthy boys celebrated their one year birthday.

(Now consider the 2^nd case below)

Would you give up your disabled son to allow your other children a chance of happiness? Despite agonies of guilt, Jane says it's the best decision she ever made

A mother’s anguish

Jean and her husband, Andrew, have 3 children, Tom, James and Elizabeth; they live in Birmingham where she worked as a solicitor.  In 1999 she gave birth to James, her second child, and her life and the life of the entire family changed dramatically; for James was born severely disabled with cerebral palsy, epilepsy and autism and he grew up to be wheel-chaired.

From the day James was born in 1999 the entire family suffered for 9 agonizing years before finally deciding to give him up in 2008.  Attending to James was so all-consuming that Jean’s other 2 children were almost forgotten and the strain almost destroyed her marriage.  James was extremely troublesome; he attacked everybody including his mother, his other siblings and even complete strangers.  He was so dreaded at home that his elder brother, Tom would refuse to join a family outing if James was coming along.  Jean had no time for any other thing, she ignored her husband and her other 2 children to be a 24-hour carer to James.

By around 2007 Jean and her husband made the decision to give up James.  Then began the struggle to get the local council to admit James as a special needs pupil and provide funding.  The parents spent over £20,000 of their hard savings on legal fees and professional assessment in their long battle to convince the local authorities that their son was disabled enough to qualify for admission and funding into a special needs residential school.

In 2008 James finally left home for this residential school and the reports his parents gets on his progress has so far been encouraging.

      

Editor’s Note:  If you want to read the full story, see my twitter page at @ Patkehinde on Tuesday, 9-4-13.  Alternatively you can send me an email at: journalists@newsbitsweekly.mygbiz.com, allow 3 days for a response.

News Commentaries

(Multiple blogs)

It's trade or bust for Britain

(Says, BBC Business editor, Robert Peston)

Brief Comment

This essay by Robert Peston should be read by every household in Britain in order to appreciate how out-of-balance our economy is and how uncertain the future is. I keep on hammering the ‘gospel’ that the rise of China has changed all known axioms about the Wealth of Nations. Chancellor Osborne is right in cutting spending and diverting the savings into new house building.

 

BBC director general Tony Hall 'confident'

about the future

Brief Comment

The BBC, like our Monarch is a name that opens doors all over the world, rich in goodwill and accepted without question. But in a fast changing world, to remain ‘confident’ about the future, in the words of new D-G, Lord Hall, the BBC must explore all eventualities, including self-financing in the long-run. Adopt forward-thinking models like Tesco and Primark.

 

M4 relief road: Chancellor

'to approve toll plan'

Brief Comment

If the success of the Millennium stadium in Cardiff in terms of costs and revenue can be replicated in this proposed M4 Relief road, then it will be a viable project. Otherwise the government may be better advised to wait to see how the economy improves before allowing the Welsh government to commit itself to more borrowings. Will private investors contribute?