NYT : Hands-Free Cars Take Wheel, and Law Isn’t Stopping Them

A General Motors promotional film envisions the future: Drivers enter the highway, put their cars on “autopilot” and sit back as the vehicle takes over and heads for the horizon. The film’s date? 1956.

Sixty years later, automakers are making that dream a reality.

But the technology has sprinted ahead so fast that lawmakers and regulators are scrambling to catch up with features like hands-free driving that are now months away, rather than years.

This summer, Tesla, the maker of high-end electric cars, is promising to equip its Model S sedan to take over highway driving under certain conditions. In January, Audi will introduce a vehicle that can pilot itself through traffic jams. And next year, Cadillac will offer no-hands highway driving with its “Super Cruise.”

Limited forms of hands-free driving have already arrived. Luxury brands like Mercedes-Benz and Infiniti offer “lane keeping” features that allow drivers to take their hands off the wheel for periods of time on straight stretches of road.

But the innovations have prompted the question: Is it legal?

The vast majority of states do not have any rules at all. The few that do passed the laws primarily to allow research and testing. Only New York specifically requires that drivers keep one hand on the wheel, but that dates to a law from 1967.

As a result, automakers are pushing into a regulatory void.

“Where it’s not expressly prohibited, we would argue it’s allowed,” said Anna Schneider, vice president for governmental relations at Volkswagen, which owns Audi.

“We don’t need any change in legislation to put Super Cruise on the road,” said Dan Flores, a spokesman for General Motors. Tesla declined to comment on the issue.

On a recent afternoon, a Volvo official demonstrated its new XC90 sport utility vehicle along a leafy road in New Jersey. Set for release in June, the XC90 has a semiautonomous feature called “pilot assist” intended for congested traffic.

After a driver pressed a button on the steering wheel, sensors scanned the road and locked on to the vehicle a few car lengths ahead. A white icon lit up on the dashboard, and the wheel began moving on its own.

As the road curved, the Volvo steered itself through it, automatically adjusting the throttle and steering. The vehicle seamlessly kept on going, though after about five seconds, a subtle dashboard light asked the driver to keep a gentle touch on the wheel.

Not that it was needed — the Volvo could keep going hands-free for miles at speeds up to 30 miles per hour on a properly marked road. But for now Volvo has programmed the XC90 to start slowing down if a driver does not heed the warning light, making the vehicle a bridge between “lane keeping” and the truly hands-free technology set to hit the market soon.

“This is about making the tedious parts of people’s drives less stressful,” said Jim Nichols, a spokesman for Volvo. “We’re not talking about a driver simply checking out and not paying attention.”

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Car manufacturers see hands-free technology as the natural next step in driving — an evolution that has gone from cruise control to anti-lock brakes to electronic stability control. None of those innovations required permission from regulators.

And legal experts say the automakers’ positions are most likely correct — that in the absence of specific laws against it, hands-free driving is legal.

“Most states don’t expressly prohibit automated vehicles,” said Bryant Walker Smith, a professor of law and engineering at the University of South Carolina.

But that does not necessarily mean drivers will not face scrutiny.

“It’s not just what’s on the books; it’s what’s enforced,” Mr. Smith said. “If a police officer sees you driving down the road with no hands, he could determine that’s reckless and still give you a ticket. Individual officers have a tremendous amount of discretion.”

No federal rules explicitly bar the practice, either. Part of why federal and state officials have struggled to define autonomous rules is that the issue cuts across traditional legal turf.

“The federal government largely regulates vehicle design, such as ‘Does it meet crash safety standards,’ ” Mr. Smith said. The states are the ones that have regulated drivers and their behavior, he said. “Now the car is becoming the driver.”

California, Nevada, Michigan, Florida and the District of Columbia legalized autonomous technology in certain circumstances — primarily to encourage testing. Several others are considering rules.

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But for consumers, and local officials themselves, the fractured nature of what is allowed, and where, may create uncertainty.

“All of the states are concerned, because no one wants to see a patchwork of regulations across the country,” said Bernard Soriano, deputy director of the California Department of Motor Vehicles. “The right way to go would be to have federal standards that the automakers could follow.”

The National Highway Traffic Safety Administration says it lacks the authority to pre-empt automakers’ new autonomous features until something goes wrong.

“If someone wants to sell a totally automated vehicle today, you could probably get a court to decide there’s nothing N.H.T.S.A. can do about that until it presents an unreasonable risk to safety,” said an agency spokesman, Gordon Trowbridge.

Proving such an unreasonable risk to safety under the agency’s mandate, he said, means citing crashes or malfunctions that have already happened.

For now, that leaves a legal vacuum, which states only now are waking up to.

A group of state transportation officials recently gathered for the first time to begin developing consumer-focused guidelines for states to share. Mr. Soriano leads the group, which has federal regulators’ support and aims to publish its recommendations by the end of 2016.

But with hands-free technology coming to market sooner, California and Nevada are already moving ahead with their own consumer regulations.

Mr. Soriano said California was close to finishing draft rules that would apply to normal drivers — though enactment is at least six months away. Until that happens, automakers may not legally be able to sell cars with certain autonomous features to California customers. Manufacturers are aiming to limit the features that would fall into that category.

And Nevada has begun working on rules for consumers that could be released by the end of the year, said Jude Hurin, a top official with the state’s department of motor vehicles.

In the end, he said, a balance needs to be found.

“We need to figure out how to regulate them in a way that doesn’t stifle innovation with too much red tape but also ensures this technology is safe and is used properly,” Mr. Hurin said.

WSJ : Charter Expresses Interest in Friendly Deal Talks With Time Warner Cable

Charter Expresses Interest in Friendly Deal Talks With Time Warner Cable
Charter Communications-backer John Malone called Time Warner Cable CEO Rob Marcus in recent days

Top executives close to Charter Communications Inc. have begun reaching out to Time Warner Cable Inc.’s management to discuss a possible merger of the cable operators. And they have a clear message: this time, we want to play nice.

Cable pioneer John Malone,—the chairman of Charter’s largest shareholder Liberty Broadband Corp.,—called Time Warner Cable Chief Executive Rob Marcus in recent days to express Charter’s interest in pursuing friendly deal talks, people familiar with the approach said. That is in contrast to the unsuccessful hostile takeover Charter pursued last year.

The call from Mr. Malone came after Comcast Corp. recently walked away from a planned merger with TWC in the face of stiff regulatory resistance. Charter had actually made contact with TWC even earlier. The evening before Comcast officially said it was dropping the deal, Charter Chairman Eric Zinterhofer had dinner with Mr. Marcus, people familiar with the meeting said.

Charter, the fourth-largest U.S. cable operator, has been laying the groundwork for making an offer to No. 2 player Time Warner Cable. The two sides will continue talking this week, when Charter Chief Executive Tom Rutledge and Mr. Marcus are set to meet at the annual National Cable & Telecommunications Association convention in Chicago, the people said.

The NCTA’s show, which kicks off Monday, is normally a venue for companies to show off the latest technology in cable TV or broadband. But this year, the cable consolidation drama is likely to take center stage. News of the forthcoming Rutledge-Marcus meeting was earlier reported by CNBC.

Already, the tone of Charter’s approach is markedly different from its takeover effort in 2013 and early 2014, which culminated in Charter making a hostile bid and nominating a slate of directors to replace the TWC board. That effort failed, as Comcast emerged as a bidder and struck its ill-fated deal with TWC.

People close to Charter have made clear that the company doesn’t want to make the mistake again of lowballing a bid. They also said that Charter is aware that it will have to offer a significant portion of its bid in cash to satisfy Time Warner Cable’s concerns about whether Charter stock is overvalued on deal speculation.

Time Warner Cable’s improving operations could complicate Charter’s bid. Last time TWC was under takeover pressure, it was bleeding subscribers. But this past week, the company reported its first video customer growth in a quarter since 2009, even as Charter reported a surprise video customer loss.

To make matters more complex, the companies are already jockeying for advantage by courting Bright House Networks LLC, a smaller operator serving about 2 million customers. The Wall Street Journal reported on Thursday that Charter and TWC had separately held preliminary talks with Bright House about an acquisition. For each, reaching a deal to acquire Bright House could place it in a better bargaining position with the other company.

Some observers said the situation was more akin to a love triangle than a war between Charter and Time Warner Cable over Bright House. People familiar with Charter’s thinking said the company believes the best option would be for Time Warner Cable, Charter and Bright House to reach a deal together. Time Warner Cable is open to entertaining any deal talks, people familiar with TWC’s thinking said, with the goal being that any deal reached maximizes shareholder value.

But after federal regulators’ resistance to the Comcast-TWC merger, it remains a question how they would view a three-way deal to create another cable giant, some people close to the deal talks noted. A combined Time Warner Cable-Charter-Bright House would serve about 24 million business and residential customers, in striking distance of Comcast’s roughly 27 million.

At least for now, Charter doesn’t appear deterred. On a Friday first-quarter earnings conference call, Charter’s Mr. Rutledge said, “I think every company is different, every transaction is different, and they’re really independent structural questions from a regulatory perspective.”

WSJ : Dollar Excuses Aren’t Worth That Much

Dollar Excuses Aren’t Worth That Much
Dollar’s strength and weak overseas economies hurt companies’ results, and they also may mask deeper problems

It was easy to predict that dollar strength and weak overseas economies were going to lay into many companies’ first-quarter results. So the idea analysts and investors were somehow surprised can be a bit hard to take.

Here is where things stood with the dollar in the first quarter: It was 11% higher, on average, against a broad, trade-weighted basket of currencies tracked by the Federal Reserve. Within that, it was 13% higher versus both the Mexican peso and Canadian dollar, 16% versus the Japanese yen, 21% versus the Brazilian real and 22% against the euro.

That was known at quarter’s end. Analysts and investors should also have had a good sense of companies’ currency exposures because these are detailed in annual filings most companies submitted during the first quarter. On the economic front, it was also obvious Brazil had entered a recession, for example, and that China slowed markedly.

Yet, last week, shares of Praxair fell sharply after the industrial-gas company reported the strong dollar weighed on sales, missing estimates. Likewise, shares of Whirlpool dropped after it said the strong dollar and struggles in Brazil hurt results. Coach’s stock dropped after it reported results outside the U.S. got hit by the dollar. A week earlier, Harley-Davidson,3M and DuPont sold off after reporting currency and overseas woes.

Analysts are far from perfect, and investors often surprise in their ability to avoid discounting things that seem obvious. Still, the broad contours of what has happened with the dollar and overseas economies are clear enough the market shouldn’t have been caught off guard. Indeed, many other companies that reported overseas and currency hits, including Pfizer,United Technologies and McDonald’s, didn’t see their shares tumble.

For those that did, it is worth contemplating whether something else was afoot. Maybe there are problems in overseas operations that go beyond economic weakness and are running deeper than analysts knew. Maybe they are facing a tougher environment than investors suppose.

The dollar has weakened over the past month, and some global weak spots are improving. As welcome as those things may be, they can’t fix everything.

>>> Omnicare attracts interest of Walgreens Boots Alliance

Omnicare attracts interest of Walgreens Boots Alliance

Omnicare, the Ohio-based, US-listed drugs supplier, has attracted the interest of listed UK pharmacy chain Walgreens Boots Alliance, the Sunday Times reported.

The report cited financial sources who said that Walgreens Boots was in the early stages of considering a bid. The item added that while Walgreens Boots CEO Stefano Pessina usually steers clears of auctions, he is considering getting involved in the bidding for Omnicare.

The report valued Omnicare at USD 8.5bn.


Sourced from business section of print copy: Page 3


Sunday Times

>>> Statoil interested in acquisitions - Dagens Naeringsliv

Statoil interested in acquisitions 

Statoil, the Norwegian oil company, is interested in acquisitions, according to Dagens Naeringsliv.

The Norwegian business reported that the oil price is almost down to half of what it was last summer and that Statoil has just written off values of NOK 46bn (EUR 5.4bn), mainly due to North American assets.

The paper cited CEO, Eldar Saetre, who said that opportunities arise when the market is down and Statoil is always interested in ways to develop the company. He said that if the current situation continues, some competitors will suffer financial strain from it. He added however that takeover targets are not cheap anymore.

When asked if the company may wish to buy in North America, he responded that it is possible but that Statoil will mainly continue to evaluate opportunities as they come along.

The original article appeared in print; Page 10


Dagens Naeringsliv

>>> Smurfit Kappa CEO says company open to takeover; International Paper looking

Smurfit Kappa CEO says company open to takeover; International Paper looking at making bid - report

Tony Smurfit, the incoming CEO of the listed Irish paper and packaging group Smurfit Kappa, has said the group is open to a takeover bid if it is in shareholders' interest.

An item in the Irish Independent on Sunday cited Smurfit as saying he would “act accordingly” if Smurfit Kappa received an offer that its board of directors deemed acceptable.

The item noted that Tony Smurfit will become CEO after the incumbent CEO Gary McGann leaves at the end of August.

The report cited unspecified rumours noting that Tennessee-based, US-listed International Paper is looking at making a EUR 8bn bid for Smurfit Kappa.

Sourced from business section of print copy: page 1


Irish Independent on Sunday

>>> Tethys Petroleum hires advisor, expands strategic review

Tethys Petroleum hires advisor, expands strategic review

Tethys Petroleum Limited ("Tethys" or the "Company") (TSX:TPL)(LSE:TPL) today provides further details of the previously-announced strategic review, and a SinoHan Oil and Gas Investment Number 6 B.V. ("SinoHan") transaction update, to shareholders.

Highlights
A strategic review of the business which encompasses options including asset sales, farm-outs, financing, investments at the corporate level, or the sale of the Company is being conducted

Discussions are ongoing with a number of interested parties on all of these potential avenues

The sale of 50% of the Company's Kazakh oil and gas assets to SinoHan is not proceeding

Discussions with SinoHan have commenced on matters relating to the termination of the sale and purchase agreement

Corporate and regional overheads, and operational expenses, continue to be scrutinized and reduced during this period

Current production stands at 5,380 boe/d

Strategic Review
The Company has adopted a twin strategy in recent months: to diligently seek timely approval from the Ministry of Energy ("MoE") to allow completion of the condition precedents ("CPs") for the SinoHan transaction while simultaneously exploring alternative paths to value realization should the deal not complete.

During this period, the exclusivity term in the SinoHan farm out agreement has prevented the Company from actively marketing its attractive Kazakhstan assets to other potential partners, or seeking other solutions for these specific assets, even though unsolicited informal expressions of interest have been received. The focus of the strategic review to date, as announced on April 10th, 2015, has therefore been restricted to date to a further scale down of the business, sale or farm downs of non-Kazakhstan assets, equity financing at the corporate level and a debt refinancing.

As the exclusivity restriction no longer applies, a potential farm-out of the Kazakhstan assets will be included with the other strategic options being pursued.

Macquarie Capital has been appointed to work with the Company to advise on the review process, and to host the data room for farm-out discussions.

Discussions are already ongoing with a number of interested parties at the corporate level and a further update will be made when appropriate. There is no certainty that any transaction will take place.

In parallel to the strategic review, the Company continues its focus on delivery of production and reduction of non-essential expenses both corporately and in Kazakhstan, beyond the extensive cuts that have already been delivered since the Board changes at the end of November 2014.

Current Financial Position
Although the Company has significantly reduced its cost base and secured additional loan financing, the Company will need to secure additional funding in order to meet its full contractual obligations and maintain a positive cash position throughout the next twelve months. There can be no assurances that such additional funding will be secured or that management will be able to implement one or more of the strategic initiatives being explored by the Company.

These circumstances indicate the existence of a material uncertainty related to events or conditions that may cast significant doubt about the Company's ability to continue as a going concern.

SinoHan Transaction
On November 1st, 2013 Tethys entered into a legally-binding exclusive agreement for the sale of 50% of its Kazakh oil and gas assets to SinoHan, part of HanHong, a Beijing, PRC, based private equity fund, for USD 75m. The longstop date for fulfilment or waiver of the CPs was extended for an additional six months starting November 1st, 2014 by mutual consent of both parties.

The Company has been working hard to fulfil the CPs required under the agreement with SinoHan prior to concluding the deal in good faith, however, the main approval required from the Kazakhstan Ministry of Energy ("MoE") has not been received by the longstop date of May 1st, 2015. Tethys has explored with SinoHan the possibility of a further short extension of the longstop date to provide additional time to obtain approval from the MoE, however SinoHan has confirmed that it does not wish to enter into a further extension on the transaction. As a result, the sale of 50% of the Tethys' Kazakhstan assets to SinoHan will not proceed and the Company will therefore retain its 100% interest.

The Company is currently in discussions with SinoHan on matters relating to the termination of the sale and purchase agreement, including:

the USD 3.88m deposit advanced by SinoHan in the form of a minimal interest-bearing loan, which becomes repayable within 10 Business Days of receiving written demand for repayment except in circumstances where the failure to complete is solely as a result of SinoHan's breach of its obligations under the sale and purchase agreement; and

the amount of up to USD 0.70m that would also be payable to SinoHan in the event of the CPs not being met or waived by the extended longstop date in circumstances where SinoHan has complied with all its obligations.
The Company expects to update the market in the near future on progress with these discussions.
John Bell, Executive Chairman, commented:

"Since I became Chairman at the end of November last year we have short term re-financed the Company and significantly reduced the cost base in order to continue operations, which were at the time unfunded, until we were able to get certainty of an outcome on the SinoHan transaction. We have reduced overheads by half and achieved the highest quarterly gas production in the last three years, whilst increasing reserves in all categories."
"The next step in Tethys' turnaround should have been the recapitalization of the Company through the SinoHan investment in Kazakhstan. Every effort has been made by me and my staff to complete this transaction. We are disappointed that the Ministry of Energy of Kazakhstan did not provide the approval required by the longstop date which was a condition precedent to the transaction."

"We are now focused on exploring further a number of interesting options that have already arisen to date from the strategic review, with the aim of maximizing the shareholders' return. I look forward to apprising shareholders of progress over the coming weeks."

"What has not changed since I joined Tethys as Chairman is the undoubted quality of the Company's assets. We retain 100% of our highly attractive assets in Kazakhstan that have generated significant industry interest at the asset and corporate level."

>>> Barrons Summary: Positive on BX, MBT, TSN

Barrons Summary: Positive on BX, MBT, TSN 

Cover story: As China opens its stock markets to global investors, its bull market may be just beginning, and the booming Hong Kong stock market could rise with the occasional bump; "Long-term investors with horizons of more than three years may need to hold their noses and look to pullbacks to build their Chinese portfolios"; Eight stocks look reasonable (positive on Citic Securities, BIDU, JKS, Baoxin Auto, Orient Overseas International, Nine Dragons Paper Holdings, China Cinda Asset Management, Jumei International Holding).

Features: 1) The annual Barron's 500 list of the largest public companies measured by sales in the latest fiscal year is topped by GILD, CBG, VRX, TMO and MA; 2) Positive on MBT: Bank's merger with Hudson City Bancorp has yet to close three years after it was announced, but gloom about the shares is overdone, and they could rise 20% once deal is approved; 3) Positive on TSN: Regardless of how earnings report plays out, shares look cheap, and company's push into packaged goods could boost its brand and give it a higher valuation; 4) Positive on BX: Private equity titan continues to thrive, shares could rise to $47 from $41 over the next year, and with its dividend it could return 20%.

Tech Trader: Cautious on TWTR, LNKD, YELP: Disappointing earnings at top social media stocks "is the same problem of the dot-com era--namely, investors playing public venture capitalists"; The shakeout is likely to favor top players such as GOOG and FB.

Trader: "It remains to be seen what the crumbling of high-valuation stocks means for the rest of the market"; Positive on EMR: Shares of industrial-equipment maker haven't done well lately, but analysts say negative news is already priced in, and since expectations are low, any good news will send them up; Positive on TACO: Levy Acquisition is acquiring regional Del Taco chain in a deal that is effectively an IPO for a food chain whose shares trade at a big discount to restaurant stocks. 

Small Caps: Positive on CVA: New Jersey-based waste-to-energy firm is well-run, has secured long-term deals with clients, and is likely to prosper as it inks new deals, cuts costs, and grows overseas.

Profile: Steve Czepiel, co-manager, Delaware National High-Yield Municipal Bond fund, looks at a dozen deals a week--and passes on most (top ten holdings: Buckeye Tobacco Settlement Financing Authority, County of Jefferson, Ala. Sewar Revenue, Gold State Tobacco Securitization, Salt Verde Financial, Tobacco Settlement Financing Corp./N.J., New York Liberty Development, Pennsylvania Turnpike Commission, Foothill-Eastern Transportation Corridor Agency, California Statewide Communities Development Authority). 

Interview: Mark Freeman, manager, Westwood Income Opportunity fund, who focuses on growth as he evaluates yield (picks: BDX, HON, COF). 

Follow-Up: Barron's looks back on India picks from last year, noting it would keep the three funds it recommended (MINDX, INDY, EPI), take profits in IDFC, and add Relaxo Footwears; Positive on AKAM: Shares are up as the Internet TV sector booms, and they could add another 10% this year.

European Trader: Positive on NVS: Amid a strong European equities market, pharma giant has had a good year following a restructuring; recent deals are less about creating a megasize business than about fine-tuning.

Asian Trader: Indonesian stocks are the worst-performing in Asia, prompting investors to begin questioning the country's leadership.

Emerging Markets: Positive on CX: Maker of cement and concrete should see a profit this year for the first time since 2009, and a 25% gain in share price is possible. 

Commodities: Working paper from the Center for Financial Studies says gas prices are likely to climb steadily higher during the next 18 months. 

Streetwise: Despite the collapse of a few major mega-mergers, the boom may just be gaining steam, and even more active government oversight isn't likely to prevent companies from making deals--and boosting the stock market.

(BFW) Buffett Says Euro in Its Present Form Won’t Work



Buffett Says Euro in Its Present Form Won’t Work
2015-05-02 20:06:40.510 GMT


By Dan Hart and Margaret Collins
(Bloomberg) -- The euro is flawed, but can be corrected,
Warren Buffett said in response to questions at Berkshire
Hathaway’s annual meeting Saturday in Omaha.
* Also says raising min. wage in “significant” way would
cost a lot of jobs
* Buffett: BRK/A’s derivatives likely to run out over time
* Says AXP a “very, very special co.”; CEO Chenualt doing
“sensational” job
* Also says earned income tax credit should be modified
* NOTE: Earlier this yr, Buffett Says Greek Exit From Euro
‘May Not Be a Bad Thing’’ Link


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Link to Company News:{AXP US <Equity> CN <GO>}

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To contact the editor responsible for this story:
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(BFW) Buffett Says Berkshire Will Buy German Co. in Next Five Years



Buffett Says Berkshire Will Buy German Co. in Next Five Years
2015-05-02 18:57:21.734 GMT


By Dan Hart and Noah Buhayar
(Bloomberg) -- Prices are a “little more attractive”
there in Germany, Warren Buffett says in response to questions
at annual meeting in Omaha.
* Buffett says it’s unlikely he’ll buy big commercial insurer
* NOTE: Earlier this yr, Berkshire to Purchase German
Motorcycle-Equipment Retailer Link
* NOTE: Yday, Buffett’s Geico to Charge Customers More After
Margins Worsen Link

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First Word newswire: {NH BFW<GO>}

To contact the reporter on this story:
Dan Hart in Washington at +1-202-624-1870 or
dahart@bloomberg.net

To contact the editor responsible for this story:
Sylvia Wier at +1-212-617-8958 or
swier@bloomberg.net