Business
Top tobacco companies face more pressure
Top four U.S. tobacco companies likely will see more price pressures, market share erosion and credit rating downgrades as their discount counterparts become more pervasive, Moody’s Investors Service said in a report released Friday.
“The creation of a ‘deep discount’ pricing segment means that ‘Big Four’ pricing flexibility — once the biggest economic strength of the industry — has disappeared in the U.S.,” Christophe Razaire, a Moody’s vice president and senior credit officer, wrote in the report.
He added, “The larger participants to the industry could have to permanently lower their net sales prices to the consumer in order to maintain market share. This could have a very detrimental effect on their profitability.”
The Big Four are Altria Group Inc., owner of Philip Morris, RJ Reynolds Tobacco Holdings Inc., Loews Corp., and British American Tobacco PLC. Moody’s said all have negative credit outlooks except for RJ Reynolds, which is on review for a downgrade.
Low-price cigarette manufacturers saw their share of the U.S. market surpass 10 percent in the first quarter of 2003, Razaire said, having had only approximately 2.5 percent market share in 1997.
Shares of Altria, whose brands include top-selling Marlboro cigarettes as well as Virginia Slims, Benson & Hedges and Basic, fell $1.39 to $41.81 on the New York Stock Exchange.
RJ Reynolds, maker of Camel, Salem and Winston brands, fell 50 cents to $36.32 on the NYSE.
British American Tobacco’s shares rose 11 cents to $21.63 on the American Stock Exchange; BAT is the third biggest U.S. cigarette company with brands such as Lucky Strike and Pall Mall.
Shares of Loews Corp., whose brands include Kent and Newport, gained 35 cents to close at $47.76 on the NYSE.
States shush corporate critics
From factory farms to home foreclosures, state governments are helping hide corporate wrongdoing
Workers at the Perdue Farms Inc. processing plant prepare cleaned and gutted chickens for packaging at the plant in Accomac, Va. (Credit: AP/J. Scott Applewhite) You can’t be outraged by — or fight back against — what you don’t know. At least that seems to be the theory behind a spate of new government-backed efforts to help corporations prevent inconvenient information from ever reaching the public domain. In states across the country, as in Washington, D.C., lawmakers are helping companies keep secrets in everything from factory farming to fossil fuel exploration to home foreclosures.
In five states, for instance, so-called Ag Gag laws are now on the books. Iowa just passed legislation that “criminalizes investigative journalists and animal protection advocates who take entry-level jobs at factory farms in order to document the rampant food safety and animal welfare abuses within,” according to the Atlantic’s Cody Carlson.
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David Sirota is a best-selling author of the new book "Back to Our Future: How the 1980s Explain the World We Live In Now." He hosts the morning show on AM760 in Colorado. E-mail him at ds@davidsirota.com, follow him on Twitter @davidsirota or visit his website at www.davidsirota.com. More David Sirota.
AT&T agrees to drop bid for T-Mobile
Government objections put an end to planned $39 billion acquisition
LOS ANGELES (AP) — AT&T Inc. said Monday that it is ending its $39 billion bid to buy T-Mobile USA after facing fierce government objections.
The cellphone giant said that the actions of the government to block the deal do not change the challenges of the wireless phone industry, which it says requires more airwaves, known as spectrum, to expand.
The deal would have solved that problem for a time, and without it, “customers will be harmed and needed investment will be stifled,” AT&T said in a statement.
Continue Reading CloseI hired the wrong person and she turned on me
She's gone now, thank God, but I can't get her out of my head
(Credit: Zach Trenholm/Salon) Dear Cary,
Three years ago, I hired what I thought to be a talented, kind and honest second in command at the magazine where I work. It turns out, I was only one-third right. While “Sally” was great at many parts of her job, she wasn’t honest and she wasn’t nice. She began sleeping with another person in my department (my work equal), and was dishonest about it, and would often say, “The art department feels this would work better this way,” when our entire organization knew these people were a couple. She’d undermine me at meetings with higher-ups, criticizing my ideas and interrupting me, and in meetings with me one-on-one, she’d burst into tears at the slightest disagreement or say, with a stern little look, “We’ll just agree to disagree.” It made any sort of discussion darn near impossible.
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Cary Tennis writes Salon's advice column, leads writing workshops and creative getaways, publishes books, writes an occasional newsletter and tweets as @carytennis.
- Send me a letter! Ask for advice! Letter writers please note: By sending a letter to advice@salon.com, you are giving Salon permission to publish it. Once you submit it, it may not be possible to rescind it. So be sure.
- Make a comment to Cary Tennis not for publication.
- Send a letter to Salon's editors not for publication.
More Cary Tennis.
Fox Business Network exec: Channel has too much Fox, not enough “business”
Rupert Murdoch's would-be CNBC-killer suffers in the ratings as it imitates its ultra-conservative sister network
(Credit: Salon) In 2007, Rupert Murdoch started the Fox Business Network to crush CNBC using the same tactics that Fox News used to surpass CNN: Make a louder, sexier, angrier, more right-wing populist product, and the old people who watch TV during the day will tune in. Except it didn’t really work with Fox Business.
CNBC averages 263,000 viewers during the workday, according to Nielsen. Fox Business tops off at 85,000 from 4:30 to 8 p.m., and that period includes daily shows hosted by Fox stars Lou Dobbs and Neil Cavuto. Fox Business executive vice president Kevin Magee had a great idea to finally turn things around, according to a memo Reuters obtained: Maybe focus more on business news?
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
No, I can’t edit your manuscript for free
I write about books for a living, so people think I'd love to critique their prose
(Credit: Zach Trenholm/Salon) Dear Cary,
I’m writing to you because you’re very nice and have a great deal of empathy, and I’m hoping you can tell me how to respond with empathy in a situation that’s causing me distress.
I write about books for a living. I have been working with, around and in books for over a decade. Hooray for my job; I feel very lucky. In the last six months, four people I know have approached me and asked for help with books they are writing. They want me to read and evaluate and edit their manuscripts. They want me to tell them where to send their manuscripts after I have made them publishable.
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Cary Tennis writes Salon's advice column, leads writing workshops and creative getaways, publishes books, writes an occasional newsletter and tweets as @carytennis.
- Send me a letter! Ask for advice! Letter writers please note: By sending a letter to advice@salon.com, you are giving Salon permission to publish it. Once you submit it, it may not be possible to rescind it. So be sure.
- Make a comment to Cary Tennis not for publication.
- Send a letter to Salon's editors not for publication.
More Cary Tennis.
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