Wednesday, February 16, 2011

Fed more confident in recovery, unhappy on jobs


 Chairman of the Federal Reserve Ben Bernanke testifies on the state of the U.S. economy before the House Budget Committee on Capitol Hill in Washington February 9, 2011. REUTERS/Kevin Lamarque
U.S. Federal Reserve officials are increasingly confident of the economic recovery but remain unsatisfied with the healing of the job market, minutes of their January meeting released on Wednesday showed.
"Participants generally expressed greater confidence that the economic recovery would be sustained," the Fed said.
While officials believed downside risks to the recovery were dissipating, the minutes characterized the forecasts policymakers presented at the January 25-26 policy meeting as "not greatly changed."
Officials raised their 2011 growth forecast to a range of 3.4 percent to 3.9 percent from their November projection of 3 percent to 3.6 percent.
The U.S. jobless rate was forecast to be in a range of 8.8 percent to 9 percent in the fourth quarter of this year, little changed from the Fed's earlier projection of 8.9 percent to 9.1 percent. Unemployment was seen declining only gradually over the Fed's three-year forecast horizon.
"Overall, meeting participants continued to express disappointment in both the pace of and the unevenness of the improvements in labor markets," the minutes said.

Producer prices up, inflation still seen muted


 A construction worker cuts tiles as he installs a roof on a home in a new subdivision being built in San Marcos, California April 23, 2010. REUTERS/Mike Blake
U.S. core wholesale prices rose in January at their fastest rate in more than two years, raising some concerns about inflation, but economists said the recovery was too weak for a big spike in consumer prices.
The core producer price index, which excludes food and energy costs, increased 0.5 percent, the biggest advance since October 2008, the Labor Department said on Wednesday. Economists had expected a 0.2 percent gain.
Investors viewed the figures somewhat warily and bond prices slipped. Economists, however, said it was too soon to panic about inflation with stubbornly high unemployment keeping labor costs subdued.
"The question is whether we are seeing a limited pass-through of commodity price hikes or the beginnings of an inflationary spiral," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.
"Wages will be the thing to watch -- there won't be an inflationary spiral unless wage inflation picks up."
The rise in core PPI reflected a jump in drug prices, which accounted for 40 percent of the increase.
Other reports on Wednesday indicated that while growth may be quickening, the recovery remains uneven. Industrial production edged down in January and housing construction continued to bounce along the bottom. But bad weather might have distorted the industrial output data.
The U.S. dollar rose broadly, while stocks gained on above forecast results from technology bellwether Dell and a deal for Sanofi-Aventis SA to buy Genzyme Corp for $20.1 billion in cash.
NO PASS THROUGH TO CONSUMERS
The rise in core PPI comes at a time when a surge in commodity prices has caused most advanced economies to raise red flags on inflation.
The U.S. Federal Reserve has so far shown little concern about price pressures and officials have repeatedly said core consumer inflation remains too low. The central bank is widely expected to complete its planned purchases of $600 billion in government bonds to assist the recovery.
Most economists agree with the Fed's stance on prices. The government is expected to report on Thursday that core consumer prices rose 0.1 percent in January from December.
"Yes, we are seeing input prices go up, companies are seeing those, but they are having a hard time passing them on. There is still a lot of slack in the economy, whether it's high unemployment or high office vacancies," said John Canally, an economist at LPL Financial in Boston.
"The economy is 80 percent services. Economy-wide, raw materials or commodity prices only account for something like 5 percent of input costs and labor is 70 percent."
INDUSTRIAL OUTPUT DIPS

Israel says Iran warships to transit Suez for Syria

Israel's Prime Minister Benjamin Netanyahu (L) speaks during the Conference Of Presidents of Major American Jewish Organizations in Jerusalem February 16, 2011. Israel said on Wednesday it had alerted ''friendly nations'' in the Middle East about two Iranian warships planning to pass through Egypt's Suez Canal for Syria. REUTERS/Baz Ratner Two Iranian warships planned to sail through the Suez canal en route to Syria on Wednesday, Israel said, calling it a "provocation" by the Islamic Republic.
The Iranian naval contingent described by Israeli Foreign Minister Avigdor Lieberman would pose no significant military threat to Israel but could spell the closest-ever encounter by the forces of the two old foes, who are geographically distant.
Oil prices surged on the news. Brent crude rose to 29-month highs, helped by Middle East jitters over clashes in Iran, Yemen and Bahrain that raised concern about disruption to oil flows.
Brent crude rose $2.40 to $104.04 at 1708 GMT,
Syria is one of Israel's neighboring enemies. It has an alliance with Iran which has deepened along with Tehran's isolation from the West over its disputed nuclear ambitions.
"Tonight, two Iranian warships are meant to pass through the Suez Canal to the Mediterranean Sea and reach Syria, something that has not happened in many years," Lieberman said in a closed-door speech to Jewish leaders.
"To my regret, the international community is not showing readiness to deal with the recurring Iranian provocations. The international community must understand that Israel cannot forever ignore these provocations."
Lieberman, a far-right partner in Prime Minister Benjamin Netanyahu's conservative coalition, called for world powers "to act soon and ... put the Iranians in their place."
Signaling reluctance to deal with the Iranian warships alone, Defense Minister Ehud Barak said Israel had alerted "friendly nations in the region" over its concerns.
The Obama administration, trying to ride a wave of political upheaval in the Middle East, said it was aware of the Iranian warships but made no further comment.
RIGHT OF PASSAGE
The Suez Canal is a vital commercial and strategic waterway between Europe and the Middle East and Asia.
"The Suez Canal does not (stop) any commercial ships from passing as long as we are not in a state of war," said Ahmed El Manakhly, a member of Egypt's Suez Canal board.
He said warships of any country need approval to pass from Egypt's defense and foreign ministries. Neither ministry had sent word as yet of an Iranian request.
Iran's semi-official Fars news agency reported on January 26 that Iranian navy cadets were going on a year-long training mission into the Red Sea and through Suez to the Mediterranean.

2012 Porsche Panamera S Hybrid unveiled ahead of Geneva debut

2012 Porsche Panamera Hybrid

2012 Porsche Panamera Hybrid – Click above for high-res image gallery

Porsche has just announced that the it is expanding its hybrid fleet with the addition of the Panamera S Hybrid. Set to debut at next month's Geneva Motor Show, the big sedan will come to the party packing a combined 380 horsepower, a figure Porsche says is good enough to get the machine to 62 mph in six seconds flat en route to a top speed of 168 mph. A total of 333 of those ponies are derived from the company's supercharged 3.0-liter V6 engine, while the remaining 47 horsepower will be served up by an electric motor. An eight-speed automatic gearbox handles shifting detail, and Porsche says that the Panamera S Hybrid can be powered by either the internal combustion lump or the electric motor or by both in tandem.

Power for the electric mill is stored in a traditional nickel-metal hydride battery, and a regenerative braking system recharges the cells during deceleration. All told, Porsche says the system is good for 41.5 mpg combined on the UK cycle, which works out to around 34.5 mpg here in the good ol' U.S. of A. depending on how you carry the one.

With the introduction of the Panamera S Hybrid, Porsche now offers a total of six variants of its sedan. The latest to join the flock will carry a price tag of £86,146 in the UK (around $138k USD, but that includes Britain's massive Value Added Tax), and so far the company hasn't said whether or not the U.S. can expect to get its hands on the car. Still, we'd be surprised if the new hybrid Panamera didn't make its way across The Pond at some point in the near future given America's penchant for gas-electrics. Hit the jump for the full press release.

Porsche celebrates millionth Facebook fan with special 911 GT3 R Hybrid

Facebook Porsche 911 GT3 R Hybrid

Facebook Porsche 911 GT3 R Hybrid – Click above for high-res image gallery

Porsche is celebrating a unique social-media milestone with a custom 911 GT3 R Hybrid. The company recently surpassed 1 million fans on Facebook, and to mark the occasion, designers have churned out a hybrid 911 with the signatures of over 27,000 Porsche fans. The vehicle is set to be on display at the Porsche Museum in Stuttgart for all to see.

The German automaker says it chose the 911 GT3 R Hybrid for the Facebook celebration because Porsche believes that the car is the future of racing. The machine packs 480 horsepower from a 4.0-liter flat six-cylinder engine and two electric motors capable of 80 horsepower each. Unlike most hybrids, Porsche opted to store the vehicle's energy in a flywheel accumulator that gets a boost during braking instead of a traditional battery pack. The technology recently proved itself as competition-capable during last year's 24 Hours of Nurburgring.

Hit the jump for the full press release.

[Source: Porsche]
The Porsche Museum displays a unique exhibit

Stuttgart. The Porsche fan community on Facebook reached a magical milestone at the turn of the year when Porsche added its one-millionth fan on Facebook, one of the largest and most popular social networks on the Internet. Reason enough for Porsche to thank its fans with a special exhibition showcasing a unique custom-made vehicle: starting today, February 11, 2011, the Porsche museum will be presenting a Porsche 911 GT3 R Hybrid adorned with the signatures of more than 27,000
Porsche fans.

The 911 GT3 R Hybrid was chosen for this extraordinary signature-gathering campaign because it impressively embodies the future of motorsport - with Porsche Intelligent Performance. The all-new hybrid system developed specially for use in a racing car has little in common with conventional hybrid systems as far as its design and componentry go. The 480 HP four-litre six-cylinder flat-twin engine in the back is complemented by an electric front axle drive with two electric drive motors each pumping out 60 kW. Instead of batteries, the electric motors are powered by an electric flywheel accumulator which is charged during braking. The 911 GT3 R Hybrid has already provided convincing proof of its race-worthiness in a 24-hour race at the Nürburgring.

The Porsche Museum is open Tuesday to Sunday from 9 a.m. to 6 p.m. Admission for adults is Euro 8,-, with a special reduction available to Euro 4,-. Admission is free for children up to the age of 14 years provided they are accompanied by an adult. For further information, please visit www.porsche.com/museum or www.facebook.com/porsche.

Bob Stempel (ex-GM, ex-ECD Ovonics) talks about lithium batteries, and what will make EVs great

Robert "Bob" Stempel, semi-retired at an energetic 78, is one of the good guys. Armed with a mechanical engineering degree from Worcester Polytechnic Institute in Massachusetts, he joined General Motor's Oldsmobile Division in 1958 as a chassis detailer and 29 years later was GM president and chief operating officer under then-CEO Roger Smith.http://www.blogcdn.com/green.autoblog.com/media/2011/02/por-stemrob-0002.jpg
In 1973, Stempel led development of the catalytic converter used around the world to control exhaust emissions. A couple years later, as Chevrolet's engineering director, he was wowing journalists with encyclopedic knowledge of every Chevy product delivered at press events in his booming voice without written notes. After that, he ran Pontiac Division, Adam Opel AG (in Germany) and Chevrolet Division, then the newly-formed Buick-Oldsmobile-Cadillac group as part of Smith's massive 1980s reorganization of GM's North American automotive operations.

When finance guy Smith – probably one of the worst CEOs in history – retired on August 1, 1990, product guy Stempel took the corporation's tattered helm. For two years, he labored to fix the mess that Smith had left. At the same time, he nurtured and championed GM's fledgling electric vehicle program and was instrumental in recruiting Ken Baker (head of Advanced Vehicle Engineering for Chevrolet-Pontiac-Canada group) to lead the effort. (This post continues after the jump.)

Baker, who had been chief engineer of GM's short-lived 1980s Electrovette (converted Chevy Chevette) EV program, was reluctant at first. "We told him, 'Ken, we've done this before,'" Stempel later recalled, "'but we've got better tools now, a much better controller from Hughes and a much better feel for the batteries. We've got an opportunity here.' So he stepped in and took it on with a real vigor. He was a bit of a visionary, a futurist. He had a personal like for that kind of transportation and was enthused about it. He was definitely a good choice." (Read more about this story in GM's EV1, the True Story.)

When GM's Board decided that the turnaround wasn't going quickly enough – partly because Stempel was too nice a guy to throw entire programs and thousands of employees overboard as fast as necessary – they replaced him in October, 1992. A lesser man might have slunk off into oblivion. Not Bob. He re-emerged three years later as chairman and CEO of NiMH battery, energy efficient solar panel and hydrogen hydride storage pioneer Energy Conversion Devices (ECD) Ovonics and ran that challenging enterprise until he retired in 2007.

When I visited in 2006 to test-drive an experimental hydrogen-powered Prius, Stempel said he believed that such a parallel hybrid was an ideal application for hydrogen – stored in ECD Ovonics-developed solid hydride containers instead of in high-pressure gaseous form – as an ICE fuel. "You can get virtually the same performance," he said.

"We had to add a turbocharger, but the electric motor at the low end provides the torque we need to get off the line. We're at about 200 miles of range now and changing our metal hydrides to get it up to maybe 300 miles. It's a heavy development program for us, and we think there are things we can do with those materials to get the mass down and capacity up. We also have plans to bring the cost down, but it's pretty tough to get it to gas-tank cost."

That was then. What's Stempel up to now? I caught up with him recently by phone and found that he's still not quite retired. "I'm officially retired from ECD and working with some guys as a consultant. A lot of folks used to say, 'Go away, we don't want to hear about electrics.' These last couple years have been a little different: 'Hey, Bob, you got a few minutes? I'd like to talk to you about electric cars.'" He declined to identify his clients, but I'm sure at least one electric vehicle (EV) battery supplier – maybe the same one he led for 12 years – is on his list. Naturally, EV batteries were what we talked about.

"I did move from NiMH to lithium-ion," he said, "and our big drive now is on materials to reduce the cost and at the same time improve the energy and power. As you know, we're going to need a life requirement of eight to ten years, and most of the work I'm familiar with now is focused around the materials.

"Most lithium batteries are structures of materials put together for best energy and power, with the fewest materials possible for cost. The basic cost is in the materials, so using less and less of them – less lithium, cobalt, expensive metals – will make the big difference. Cost is a major effort within the battery industry, and it's starting to bring results."

But isn't labor also a major cost factor in battery pack production? He said a lot of what is now hands-on will become automated, and battery makers are paying more attention to cell-to-cell variation: "Once you get those cells where each one is virtually identical to the next one, the pack process becomes a lot less complicated. And people are working on the controls. When we started with li-ion, you literally had to measure the temperature and the voltage drop in every cell, so the complexity of the controls was horrendous. Now it's getting much simpler."

With li-ion, it's necessary to avoid high and low states of charge, right? "Absolutely. You have to stay away from the top and the bottom because lithium is unstable at full charge, and at full discharge. If you stay in the 20 to 80 percent range, you're pretty comfortable."

Nissan tells me it's using much more than that in the Leaf. "There are some running in the 10 to 90 percent range. Depending on your confidence in your control algorithm, you can stretch that. But if you get below 10, you do have to pay attention. I think GM is being conservative. The last thing they want is a lithium fire in a Volt, so they're going to be very, very cautious about that. Expect that to change with time, though."

Nissan says it's been working on its own li-ion technology for 18 years. "It was only a few years ago when Carlos Ghosn was saying, 'Electric cars, never. Not in my lifetime.' If anyone has changed course, it's him. Part of that is what they've done with the battery, and I give them credit. They have been able to sustain fast charging at the 440-volt level, and they're apparently getting very good life with it."

What about Tesla's pack, which uses 6,000-plus laptop computer batteries wired together in series and in parallel? How can they make – and service – something like that cost effectively? "Their people came from the computer business, and they certainly had the capability to put together an algorithm to control that. But that's too many cells. I think over time, we'll see them shift to a more conventional kind of pack."

Yet Mercedes is using Tesla batteries in its test fleet, and Toyota has partnered with Tesla. "The Toyota/Tesla partnership arose out of a series of other issues. It was really a convenient marriage for Toyota, because they needed to do something with the Fremont plant. When you unravel that story, there's a lot more to it than just batteries." And Mercedes has sold off part of their investment and is backing away from that. That multi-cell concept is very, very difficult, so I think you'll see Mercedes moving toward bigger cells and fewer of them. They wanted to get their feet wet on an experimental basis so were trying a little of everything.

"But Silicon Valley has very knowledgeable people in computer logic and programming, and what will make electric vehicles great over time will be the programs that run it. If you get something that's bullet-proof from a safety standpoint and gives you the performance you want, people will be pounding on your door to get it."

Now that Nissan and others are ramping up availability of EVs that will do exactly that, we'll all be watching very closely.

Nvidia previews quad-core Tegra 3 for late 2011

MWC 2011: And you thought Honeycomb on Tegra 2 was hot

Nvidia has given TechRadar a sneek preview of the next generation of Tegra processor.
The new chipset – not yet officially called Tegra 3 – is codenamed Project Kal-El (yep, we know) and is "the world's first mobile quad-core CPU". Tegra 3 will most likely make its debut in late 2011.
And we're not overstating it when we say that it's awesome – we were blown away by the early stuff we saw. It'll have four cores with, wait for it, a 12 core graphics processing unit.
Nvidia tegra 3
The new chip will offer incredible graphics resolution – up to 2,560 x 1,600 (dubbed Extreme HD) and provide so-called 3D stereo. In some apps, we were told, it will have five times the performance of Nvidia Tegra 2. And, as you'll hear, we could be talking about 100 times the performance of Tegra 2 in three years' time.
And when you see a Tegra 2 tablet running Android 3.0 Honeycomb, you'll find it hard to imagine just what that five time performance increase would be like.
As Tegra is ARM-based, Kal-El is based on the ARM Cortex-A9 design, but as with Qualcomm's Snapdragon, Nvidia has done a lot of extra work, especially on the graphics side.
"You won't see this from any of the other guys," said Nick Stam, Nvidia's director of technical marketing. "You won't see this from Qualcomm, or TI or whoever. Our guys have so much expertise with GeForce."
The Tegra roadmap we've seen goes until 2014 – as we know the Cortex-A15 is coming from ARM it's not hard to see where this is going. Interestingly for Microsoft-watchers, latter variants of Cortex-A15 will support DirectX-11 as well. Next from Kal-El is Wayne in 2012, Logan in 2013 and Stark in 2014.
Nvidia tegra 3
"This is the very first actual product manufactured and demoed right now. The chip is in there, ARM architecture. In 2014, Stark will have 100 times the performance of Tegra 2."
"It will make its graphics performance maybe 3x Tegra 2. We're running at 1GHz right now in the demo, but that could scale up and will most likely will."
"Right here we're not giving product names, we're not formally naming it yet, but it's coming."
We were also shown a more secretive demo of Tegra 3 pumping out 1440p, or 2560 x 1440 to give it its proper resolution. This is a serious graphics processor.
Nvidia tegra 3

LG Optimus Pad UK release date is April or May

Exclusive: Also Carphone Warehouse outed as stockist

lg-optimus-pad
The LG Optimus Pad UK release date is April or May.
What's more, the 3D-enabled tablet is going to be available through Carphone Warehouse, presumably on contract deals.
That's according to Nvidia's technical marketing director Nick Stam, who we spent some time with on the Nvidia booth at Mobile World Congress 2011.
As we were touring the stand looking at Nvidia's Tegra 2 tablets including the Motorola Xoom and new Toshiba tablet, we arrived at the Optimus Pad at which point Stam pulled a piece of paper from his pocket which detailed launch dates for the slab in Europe.
For the UK, it clearly said Carphone Warehouse and gave an April/May timeframe. But, of course, the real question is "how much?" We're sure it won't be cheap - especially with the 3D capability. Check out our Hands on: LG Optimus Pad review.

 

NFC adds ‘noticeable premium’ to smartphone cost

nfc-adds-noticeable-premium-to-smartphone-cost-featured-image

Samsung has told TechRadar that it thinks NFC is about to take off, despite the extra cost associated with the technology.
Jim Powell, head of product management for Samsung Mobile UK, told us that networks were deeply interested in pushing the technology and had asked Samsung for products to satisfy that:
“We’re seeing NFC across an increasing number of devices. The Galaxy S2 and the new Wave 578 won’t be the end of our involvement in the technology,” said Powell.
Network drive
“In the UK the drive is coming from the networks, as they see a real opportunity with the technology which is why they come to us and ask for a specific product – like the Wave 578.
“NFC is coming in a big way, and the change is going to be enormous over the next 12 months.
“NFC obviously incurs a natural development cost – it will be a noticeable premium on handsets but it won’t be huge, and it certainly won’t be the reason NFC technology in phones becomes popular or fails.”
With some analysts predicting over half of all mobile phones will be NFC-enabled in 2015, this makes a degree of sense, so keep an eye out for an increasing number of people touching stuff with their handsets.