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To: cirrus who wrote (158217)1/15/2009 8:09:45 AM
From: stockman_scott  Respond to of 361940
 
Steve Jobs May Have Pancreas Removed After Cancer (Update3)

By Connie Guglielmo, Rochelle Garner and Jason Gale

Jan. 15 (Bloomberg) -- Apple Inc. Chief Executive Officer Steve Jobs could be facing surgery to remove his pancreas, doctors say.

Jobs said yesterday he’s taking a five-month leave of absence after discovering that his health problems are “more complex” than he thought last week. Apple, which has plunged after a succession of rumors about Jobs’s medical condition, dropped 7.1 percent in early U.S. trading today.

Jobs had a procedure similar to a Whipple operation, which involves removing parts of the pancreas, bile duct and small intestine, after he was diagnosed with a rare type of pancreatic cancer in 2004. A potential side effect of this procedure is that the organ has to be removed to prevent pancreatic leak, and the patient has to be kept alive with insulin to regulate blood sugar, said Robert Thomas, head of surgery at the Peter MacCallum Cancer Centre in Melbourne.

“You might have to take the rest of the pancreas out,” said Thomas, 66, who first performed the Whipple procedure more than 20 years ago. “You’re on significant doses of insulin, and it’s not easy to manage. The person has the risk of severe diabetes.”

Jobs, who handed day-to-day operations to Chief Operating Officer Tim Cook, said he will remain involved in “major strategic decisions.”

Apple’s unwillingness to provide details on Jobs’s health has frustrated investors, who have watched the stock plummet with each new rumor about his condition. Apple didn’t give any details about Jobs’s health even as he appeared increasingly thin in 2008, saying only it was a private matter. Jobs said last week he suffers from a “hormone imbalance” that caused weight loss.

Shares Plunge

Apple, based in Cupertino, California, fell $6.08 to $79.25 in trading before U.S. exchanges opened after Jobs, 53, said he would remain CEO while taking a medical leave of absence until the end of June. Just last week, Jobs said his treatment should be “simple and straightforward.” Apple’s stock closed at $85.33 in Nasdaq Stock Market trading yesterday.

“There’s been too little information, and the information that’s come out has been vague -- creating more concern rather than conveying a sense of certainty,” said Nell Minow, founder of the Corporate Library, a research firm specializing in corporate governance based in Portland, Maine. “They have achieved confusion, and a sense of being unsettled.”

Apple is not providing information beyond the statement, said spokesman Steve Dowling. The company’s directors, including former U.S. Vice President Al Gore and Google Inc. CEO Eric Schmidt, either couldn’t be reached or declined to comment.

‘More Opaque’

“What they have done is the extraordinary accomplishment of coming out with a press release that is more opaque than the last one,” said Jeffrey Sonnenfeld, associate dean of the Yale University School of Management. “They have now surrendered their credibility.”

Jobs, who co-founded Apple in 1976, returned as CEO in 1997 and has revived the Macintosh computer brand while pushing the company into new markets with the iPod media player and iPhone. He rarely gives interviews and once had a biography of him pulled from Apple’s corporate store. Andy Hertzfeld, one of the main architects of the Mac operating software, wrote in his book that those who worked with Jobs said he was surrounded by a “reality distortion field.”

Jobs hasn’t been seen in public since October.

“This should not have gone on this long -- it’s not healthy for the business,” said Charles Elson, director of the University of Delaware’s John Weinberg Center for Corporate Governance. “The fact the issue has played around for months makes you wonder at the responsiveness of the board.”

Cancer Surgery

Jobs disclosed in August 2004 that he had surgery to remove a tumor related to a rare form of pancreatic cancer that wouldn’t require chemotherapy or radiation. Cook ran Apple while Jobs took a monthlong leave.

Jobs told Apple’s board about his cancer and directors decided to say nothing, Fortune reported in March 2008. Larry Sonsini, the company’s attorney, told directors that Jobs’s right to privacy topped disclosure rules, the magazine said. Sonsini declined to comment yesterday.

Jobs appeared thinner while introducing the iPhone 3G at Apple’s developers’ conference in June last year, prompting investors to raise questions about his health. The company said at the time he was suffering from a “common bug.”

Jobs continued to appear frail at company events later in the year. Rumors escalated last month when Apple said Jobs wouldn’t deliver the keynote address at the Macworld conference in San Francisco -- ending an 11-year run.

Last week, Jobs said he was suffering a hormone imbalance that had caused him to lose weight and that the remedy is “relatively simple.”

‘Incomplete’

That disclosure “will strike many as incomplete,” in light of yesterday’s announcement, said John Coffee, a securities law professor at Columbia Law School in New York.

The U.S. Securities and Exchange Commission may examine whether Jobs or Apple purposely misled investors about his condition, Coffee said. If the stock drops dramatically, shareholders may sue, Coffee said.

Some may give Jobs the benefit of the doubt. In December 1986, after MCI Communications Corp. founder Bill McGowan had a heart attack, two weeks passed before the company made an announcement. Four months later, when McGowan had a heart transplant, the company again was silent for several weeks. McGowan died in 1992.

Apple and Jobs may have made the disclosure last week in good faith, said Joe Grundfest, a professor of capital markets, corporate governance and securities litigation at Stanford University.

‘Unusual and Complicated’

“Mr. Jobs has an unusual and complicated medical condition,” Grundfest said. “When conditions are complicated, physicians have difficulty making clear decisions.”

Still, the pressure now is on Apple’s board to provide more information on the events leading up to Jobs’s decision to take leave, said James Post, a professor of management at Boston University.

“Has Steve Jobs and Apple’s board played fair with investors? There are a lot of unhappy and dissatisfied investors who are going to say the answer is no,” Post said. “The board members may not really answer the question of what did they know and when did they know it until there’s a discovery process in a lawsuit.”

To contact the reporters on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net; Rochelle Garner in San Francisco at rgarner4@bloomberg.net; John Lauerman in Boston at rgale5@bloomberg.net.

Last Updated: January 15, 2009 08:00 EST



To: cirrus who wrote (158217)1/15/2009 9:40:38 AM
From: stockman_scott  Read Replies (1) | Respond to of 361940
 
cirrus: That is depressing news about Steve Jobs...I fear that his pancreatic cancer has returned...He had surgery to remove a rare tumor in the pancreas back in 2004...Yet, pancreatic cancer is very tough to beat...My family has some close friends that have died from it recently...Less than 5% of patients with pancreatic cancer live beyond 5 years from when the treatments are started...Jobs is only in his mid 50s but he's going on his 5th year since he was diagnosed and operated on -- and he's lost A LOT of weight very quickly in the last year...I hope Jobs can beat the odds and I'm sure he'll get the best medical treatment money can buy.

Job's is maybe one of the most influential personalities of the last century...what he did to Apple when he returned in 97, transforming the money-losing maker of the Macintosh computer, with his focus on stylish design and simple-to-use gadgets that won over millions of buyers, turning Apple's Ipod media player and Iphone into best sellers, etc. This was truly remarkable and Jobs has revolutionized several industries.

This guy changed the way we live.

And don't forget that Steve Jobs' reach extends far beyond Apple. He's also the guy who bought a struggling special effects division from George Lucas and presented them with the task of making the first fully computer generated animated feature. Nine years later, Toy Story was born. That company is called Pixar...It was transformational and was sold to Disney for a multi-billion dollar profit.

The news that Steve Jobs would be handing over the reins of Apple was a sad moment. Supposedly it's only until June, but I think there's a good chance he may not return as CEO - and I hope I'm wrong. Despite positive treatment, there is no known cure for pancreatic cancer. It can be declared "in remission" (likely the case with Jobs, at least to this point) but it does not ever simply go away.

Apple can't replace Steve Jobs and it will probably be a long time before such a charismatic leader with a dynamic vision emerges again.



To: cirrus who wrote (158217)1/15/2009 6:26:26 PM
From: stockman_scott  Respond to of 361940
 
GM Says 2009 U.S. Auto Sales May Fall to 27-Year Low (Update2)

By Jeff Green

Jan. 15 (Bloomberg) -- General Motors Corp. cut its estimate for 2009 U.S. industrywide auto sales to 10.5 million units, a total that would be the lowest in 27 years, as a worsening economy crimps demand.

The new outlook replaces a projected range of 10.5 million to 12 million vehicles, the biggest U.S. automaker said today at a Deutsche Bank AG conference in Detroit. Global sales will fall to 57.5 million autos from 67.1 million last year, GM said.

GM is using the sales estimates to craft a proposal to cut costs, revamp operations and show it can repay $13.4 billion in emergency Treasury Department loans. A weakening economy may force GM to seek additional government funding after completing the viability plan due March 31.

Sales “anywhere near 10 million will be a disaster for the industry. It will make an already dire situation even worse,” said John Casesa, a managing partner at consulting firm Casesa Shapiro Group in New York. “It’s a level of demand that is far below Detroit’s break-even point.”

Chief Executive Officer Rick Wagoner said today that the current borrowing may be sufficient and that he would seek more funds later should they be needed. GM received an initial $4 billion in loans on Dec. 31 after saying it would run short of operating cash by the end of 2008 without an infusion of aid.

“We’re on track,” said Wagoner, who was joined at the Deutsche Bank meeting by Chief Operating Officer Fritz Henderson and Chief Financial Officer Ray Young. “We’re confident GM will come through this a stronger company.”

GM rose 7 cents to $3.92 at 4 p.m. in New York Stock Exchange composite trading.

1982 Low

Industrywide sales of 10.5 million vehicles in the world’s biggest auto market would be the lowest level since the 10.36 million units of 1982, according to research firm Autodata Corp. of Woodcliff Lake, New Jersey.

Deliveries plunged to 13.2 million in 2008 after averaging about 16 million annually during the past decade. U.S. job losses last year were the worst since 1945. Global economic growth this year may slow further, to 0.5 percent from 2.3 percent, GM said today.

GM is seeking concessions from its largest union and is chopping debt in half because the government can call the loans without proof of restructuring progress by the March deadline.

Bondholder Committee

Bondholders have formed a committee to discuss an equity- for-debt exchange as GM works to reduce unsecured public debt by at least two thirds, and preliminary talks are under way as part of the terms of the government loans, Henderson said.

Young said the exchange is designed to pare $27.5 billion in unsecured debt to about $9.2 billion in a swap for equity.

GM also needs to reduce its obligations to a union retiree health fund to $10.2 billion, a 50 percent trim, in a separate equity swap, Young said. About $14.1 billion in other debt won’t be affected.

The survival plan also includes a plan for GM to drop or de-emphasize half of its brands and seek to cull 1,700 dealers from its total of 6,400. GM will cut 1,164 dealers in large metro areas to reduce overlap and shut 586 rural-area dealers, Henderson said.

TARP Aid

GM is using the first installment in loans from the Troubled Asset Relief Program to pay bills, mostly to the automaker’s 3,000 suppliers.

An additional $5.4 billion is due this month. Should Congress agree to release a second $350 billion in TARP funds, GM will get $4 billion more in February. An initial progress report must be presented to the Treasury Department by Feb. 17.

The loans are secured by almost all of GM’s available unsecured assets and as a secondary lien against other assets already secured, Young said today. GM also plans to draw $1 billion in Treasury loans granted to the automaker as part of a $6 billion bailout of the GMAC LLC finance unit.

Chrysler LLC also received $4 billion after saying it was in danger of running out of money at the start of this year.

GM’s sales estimate may be a sign that pressure will mount on Ford Motor Co., the only U.S. automaker forgoing federal aid for now. Ford projects U.S. vehicle sales of at least 12 million, 13 percent more than GM’s latest outlook. Industry sales of 10.5 million may force Ford to seek as much as $13 billion in federal loans, according to a plan presented to Congress last month.

Ford is asking the government for a $9 billion line of credit as a financial backstop. Executive Chairman Bill Ford said this week the second-biggest U.S. automaker won’t tap that credit line unless “the world implodes as we know it.”

To contact the reporter on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net

Last Updated: January 15, 2009 16:47 EST



To: cirrus who wrote (158217)1/16/2009 2:09:11 PM
From: stockman_scott  Respond to of 361940
 
Obama’s Actions May Pose Biggest Risk to Presidential Honeymoon

By Edwin Chen

Jan. 16 (Bloomberg) -- Bill Clinton said his presidential honeymoon lasted 35 seconds. Dwight Eisenhower’s never really ended. Gerald Ford’s monthlong glow vanished overnight with his “full, free and absolute” pardon of Richard Nixon.

All new presidents enjoy that fickle grace period marked by relative harmony and low-decibel partisanship.

For Barack Obama, the question is how long his honeymoon will endure and how much of his ambitious agenda he can achieve before it ends, perhaps -- if history is a guide -- as a result of his own actions.

“New presidents abort their own honeymoons,” said political analyst Charlie Cook. “There’s a residual goodwill that comes into office with them, and it stays with them until they end it by making mistakes.”

Presidential honeymoons provide Americans a first in-depth look at their newly elected leader while granting him a chance to set a tone and style that is likely to carry long-term consequences for the country and his presidency.

“First impressions tend to be lasting ones,” said Thomas Mann, a political analyst at the Brookings Institution, a research organization in Washington. “Mistakes made early can certainly weaken a president -- not necessarily destroy his presidency but slow him down.”

War, Economy

There are emerging hairline cracks that foreshadow turbulence. These include questions about back taxes owed by Treasury Secretary-designee Timothy Geithner and a rift between Obama and congressional Democrats over his economic stimulus package. The new president has already been forced to flip-flop over the status of Roland Burris, his Senate successor, whose appointment he initially opposed.

In addition, Obama, 47, inherits two wars and what is billed as the worst economic climate since the Great Depression. Still, he is poised to enjoy a sweeter honeymoon than most of his predecessors.

“Obama has the chance to have the biggest honeymoon we’ve seen in decades,” said David Gergen, a professor of government at Cambridge, Massachusetts-based Harvard University who worked for Presidents Nixon, Ford, Ronald Reagan and Clinton.

High Ratings

Post-election polls consistently show high approval ratings for Obama. In a survey released yesterday by the Washington- based Pew Research Center for the People and the Press, 79 percent of Americans, including 59 percent of Republicans, said they have a favorable impression of the president-elect. Bush’s personal favorability just before he took office in 2001 was 60 percent, and Clinton’s was 69 percent shortly before he was inaugurated in 1993, said Andrew Kohut, director of the Pew Research Center.

When a new president takes office, “Congress, at least the opposing party, is usually a bit reticent at first to take him on,” said George C. Edwards, a historian at Texas A&M University in College Station, Texas.

There also is “an afterglow from the election, so the public is generally likely to be more supportive.”

Thus, in the face of the twin challenges of war and fixing the economy, most Americans -- including the president he will replace -- are rooting for Obama to succeed.

“We wish the president-elect and his team all the best,” President George W. Bush told reporters at the end of his final Cabinet meeting Jan. 13. “It is our genuine wish that they do well.”

2 Phases

While every presidency is unique, the first year tends to have two phases, Gergen said.

The first is the traditional First 100 Days, set by Franklin Roosevelt. The other runs from the inauguration to the congressional summer vacation.

Many lawmakers return in the autumn ready to showcase their differences with the president, driven in part by their own re- election races a year later. After those midterm elections, a new presidential campaign season kicks into gear, making bipartisan cooperation on big issues more difficult still.

“August has been cruel to a great many presidents,” Gergen said.

The lesson is “strike early and focus on your high priorities,” Edwards said.

Presidents at times seem all-but obsessed with honeymoons - - or the lack thereof.

Within days of taking office in 1974, Ford told Congress: “I do not want a honeymoon with you. I want a good marriage.” His pardon of Nixon a month later prompted a 30-point drop in his public-approval rating.

Nixon Pardon

As a consequence, “Ford’s ability to get results plunged,” said Fred Greenstein, a historian at Princeton University in New Jersey.

Reagan joked shortly after his 1984 re-election, “If I’ve had a honeymoon with the Congress, romance has been dead in Washington for four years.”

Reagan’s 1981 honeymoon was already stalled by late February, but his popularity soared after surviving an assassination attempt in March.

“The shooting gave him an enormous boost,” said Gergen, who was a top Reagan aide. “It was a significant turning point in his presidency.”

‘Banana Peel’

Historians said Clinton had only himself to blame for his short-lived honeymoon, which was caused by such distractions as the uproar over his gays-in-the-military policy, a $200 haircut aboard Air Force One and snafus with top Cabinet appointments. Gergen, who later served Clinton as a counselor, said he slipped on “one banana peel after another.”

Clinton eventually recovered and went on to outwit the congressional Republicans in a budget dispute that led to a government shutdown.

Franklin Roosevelt and Lyndon Johnson made the most of their honeymoons: FDR with the New Deal and LBJ with the Great Society.

“Roosevelt got a huge amount of legislation enacted and was overwhelmingly re-elected,” Greenstein said. “Then he brought it all to a crashing end when he made his Supreme Court- packing proposal.” This didn’t prevent him from being elected to four terms, however.

Johnson enjoyed two honeymoons. The first was in 1963, when as vice-president he ascended to the presidency after the assassination of John F. Kennedy. The second was in 1964, when he won the election by a landslide. Public disenchantment with the Vietnam War eventually led Johnson to not seek re-election in 1968.

Eisenhower Record

Eisenhower enjoyed the longest honeymoon. “There was not single month in which more people disapproved of his conduct than approved,” Greenstein said.

For Obama, the political goodwill and high public expectations may be a double-edged sword.

“Sometimes, efforts to move quickly before the pieces are in place can end up doing more harm,” Mann said. “A more measured way can lead to some positive impressions and more modest victories that can actually increase one’s political capital.”

Lawrence Jacobs, director of the center for the study of politics and governance at the University of Minnesota, said he doubts Obama’s honeymoon will break any longevity records.

“The deep-seated differences between the parties -- and the philosophical differences within the Democratic Party -- remain,” he said. “And within a short period of time, the differences will be front and center again.”

To contact the reporter on this story: Edwin Chen in Washington at EChen32@bloomberg.net

Last Updated: January 16, 2009 00:01 EST