Thursday, February 17, 2005

Alan Greenspan, Chairman of the Federal Reserve has suggested that there will be more of the same in coming months from the Fed. In his speech during testimony before the U.S. Senate Banking Committee on Wednesday, Mr. Greenspan noted that the economic fundamentals of the U.S. appeared to be stable. On Thursday, Greenspan spoke before the U.S. House Committee on Financial Services and when faced with questions regarding Social Security reform issues, he hinted that he was in favour of partial privatization of Social Security – but the general consensus on Wall Street is to expect more of the same.

However, economic advisors were somewhat disappointed that most of the testimony in both speechs was focused on the upcoming Social Security reform and did not address monetary policy as broadly as they’d hoped. Mike Moran, chief economist at Daiwa Securities America Inc, is quoted in the Investors Business Daily as saying “Chairman Greenspan provided few explicit insights into his plans for monetary policy.”

Greenspan reiterated his concerns about market reactions to the burgeoning federal deficit. “We are not sure to what extent and how much the market will respond,” he said.

Parsing Greenspan’s reports to Congress is a Wall Street obsession, but the general consensus from his recent testimony is to expect little change in the current Fed policy. Economists expect “measured” hikes to the central bank’s short-term interest rates from the next few meetings of Fed policy-makers.

“In my view the bottom line is that we are in for more of the same,” said Steve Stanley, chief economist at RBS Greenwich Capital to the Associated Press.

Saturday, June 25, 2005

In an interview on NBC’s Today show with Matt Lauer, Tom Cruise aggressively defended his opposition to psychiatry and anti-depressive drugs. This occurred after being asked questions about his criticism of Brooke Shields, who has been taking drugs, including Paxil, for postpartum depression. Cruise is usually known for keeping his cool in interviews, but recently he has been slightly more unbound.

Cruise’s statements, including “Psychiatry is a pseudoscience“, and “There is no such thing as a chemical imbalance in a body”, reflect the beliefs of the Church of Scientology, of which he is a member. The interview became particularly tense when Lauer mentioned that he knew people who had been helped by taking Ritalin, an attention-deficit disorder drug.

“Matt, Matt, you don’t even — you’re glib,” Cruise responded. “You don’t even know what Ritalin is. If you start talking about chemical imbalance, you have to evaluate and read the research papers on how they came up with these theories, Matt, OK. That’s what I’ve done.”

Cruise went on to say: “You don’t know the history of psychiatry, I do.”

Cruise has not formally studied medicine beyond a high school education, having dropped out in his senior year (1980) to pursue an acting career. In light of this, some members of the psychiatric community have refuted Cruise’s controversial statements. Dr. John Scully, medical director of the American Psychiatric Association, has said “The illnesses we treat – anxiety, depression – are very real illnesses…The treatments work. We have demonstrated that through robust scientific study.”

Lauer insisted that Ritalin helped people: “You’re telling me what’s worked for people I know or hasn’t worked for people I know. I’m telling you, I’ve lived with these people and they’re better,” Lauer said.

Cruise hinted that Lauer was promoting Ritalin and Lauer scoffed: “I am not. I’m telling you in their cases, in their individual case, it worked.”

The exchange ended when the two basically agreed to disagree. Cruise, who is 42, did admit that one of his goals is to speak more about Scientology in an effort to get people to understand it better.

Scientology has historically been at odds with the established medical and mental health community. The rift dates back to the 1950s and Scientology’s founding father L. Ron Hubbard. In his book, “Dianetics: The Modern Science of Mental Health”, published in 1950, Hubbard claims that Dianetics (later called Scientology) could cure the majority of human ailments. These claims were sharply disputed by a variety of mainstream science and medical professionals including psychiatrists.

On Monday, June 27, 2005, the American Psychiatric Association released a statement that stated the following:”It is irresponsible for Mr. Cruise to use his movie publicity tour to promote his own ideological views and deter people with mental illness from getting the care they need…Rigorous, published, peer-reviewed research clearly demonstrates that treatment (of mental illness) works…It is unfortunate that in the face of this remarkable scientific and clinical progress that a small number of individuals and groups persist in questioning its legitimacy.”

The APA represents nearly 36,000 physicians specialising in the diagnosis and treatment of mental illness.

Friday, April 9, 2010

British Airways (BA) and the Spanish airline Iberia have signed a merger deal, which will create one of the largest air carrier groups in the world.

The two announced the merger yesterday, and said that the deal, which has been expected for a long time, is to be implemented by the end of 2010. The move will make a group with a market value of US$8 billion. The deal has been negotiated since July 2008.

Under the plan, both companies keep their own brands and operations, but will be owned by International Airlines Group, a new holding company. It will be listed in London, but taxed in Spain.

The airlines believe the merger will save $530 million annually. In February, BA reported a loss of $102.4 million for the final three quarters of 2009, whilst Iberia posted an operating loss of $629 million.

Meanwhile, investors in BA will receive an IAG share for every BA share they own, and stockholders in Iberia 1.0205 shares for each share in the Spanish airline; thus, BA shareholders will take 55% of IAG.

“The merged company will provide customers with a larger combined network,” commented BA chief executive Willie Walsh. “It will also have greater potential for further growth by optimising the dual hubs of London and Madrid and providing continued investment in new products and services.”

Meanwhile, Iberia chief executive Antonio Vázquez remarked: “This is an important step in creating one of the world’s leading global airlines that will be better equipped to compete with other major airlines and participate in future industry consolidation.”

Independent aviation specialist James Halstead said he believed the merger was necessary for BA to remain competitive amongst other European air carriers. “BA’s unique position at Heathrow could help it survive for a short while, but in the long run it needs more than just Heathrow. The main point of the Iberia deal is to be able to cut costs and put the combined company in the position that Air France-KLM and Lufthansa are already in,” he said, quoted by The Independent.

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