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Branson’s Virgin Group gets into peak oil

Dire predictions tend to grab the attention – especially when an international celebrity lends a voice. A report released in Britain this week with the unpromising title — the UK’s Industry Taskforce on Peak Oil & Energy Security – might have found only a specialised readership, but for the inclusion of Richard Branson’s Virgin Group in the six-member task force. (The others were Arup, Foster & Partners, Scottish and Southern Energy, Solarcentury and Stagecoach Group.) As it was the warning that oil shortages, insecurity of supply and price volatility will destabilise economic, political and social activity within five years was splashed across the press. Advocates of the peak oil supply theory have long argued world oil supply is nearing a peak from which it will decline, leading to skyrocketing prices. Some of them have reckoned the peak could be as early as this year. They have had publicity in the past, but not quite on the Branson scale. So far, the other side of the peak debate has yet to find celebrity backing, although it is quietly earning more adherents, who are asking whether demand rather than supply will be the first to run out as climate change policies change energy consumption habits. The Paris-based International Energy Agency, which advises 28 governments including the UK — said on Thursday oil demand, rather than supply, looks to have peaked in the developed world. If true, that would ease any strain on supplies that may develop in future and is a more reassuring message – provided of course you don’t own or work at an oil refinery in Europe or you’re not a major oil exporting country. So who is right? Time will tell, but future expectations for the oil price do not yet suggest extreme concern about supply. Investors expect the price of crude to trade at $95 a barrel in December 2018. That is around $20 more than the present level, but still some way short of the record high reached in 2008 near $150

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UPDATE 1-Mexico's Walmex reports higher quarterly profit

MEXICO CITY Oct 18 (Reuters) - Mexico's top retailer, Wal-Mart de Mexico , reported a higher third-quarter profit on Tuesday, helped by a jump in sales.The retailer, known locally as Walmex, said third-quarter profit was 4.875 billion pesos ($351 million), compared with 4.250 billion pesos a year ago.That was slightly above expectations for a profit of 4.824 billion pesos, according to a Reuters survey of six analysts.Walmex said revenue rose 10.6 percent to 91.04 billion pesos from 82.29 billion pesos in the third quarter of 2010.Shares in the company, which is controlled by U.S. retailer Wal-Mart Stores Inc , closed up 0.18 percent, or 6 centavos, at 32.98 pesos in local trading.

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UPDATE 1-Domino's profit tops Street as sales hold up

* U.S. same-store sales up 3 pct, int'l up 8.1 pctOct 18 (Reuters) - Domino's Pizza Inc reported a quarterly profit that topped Wall Street's expectations, helped by higher sales at established restaurants around the world.Domino's had net income of $22.1 million, or 36 cents per share, for the third quarter ended Sept. 11, up from $16.6 million, or 27 cents per share, a year earlier.Excluding items, Domino's profit was 35 cents per share, topping analysts' average estimate by 2 cents, according to Thomson Reuters I/B/E/S.The pizza delivery chain, which competes with Papa John's International Inc and Yum Brands Inc's Pizza Hut chain, said revenue rose 8.3 percent to $376.3 million.Sales at Domino's restaurants open at least one year were up 3 percent in the United States and up 8.1 percent internationally. Same-restaurant sales are a gauge of restaurant performance.Ann Arbor, Michigan-based Domino's changed its U.S. pizza recipe last year to make it more flavorful.

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Chris Isaak pays homage to Elvis on latest album

You might have found yourself wishing the all-star cast idea had been chucked so Isaak could just cut the songs all by his lonesome.That wish comes to a kind of fruition on Isaak's new album, "Beyond the Sun," though Holly doesn't figure into this oldies set.Instead, the pop-rockabilly revivalist is paying highly effective homage to the short-lived, eternally influential Sun Records roster of the mid- and late '50s, particularly Elvis, Johnny, Jerry Lee and Carl Perkins. He's a one-man Million Dollar Quartet.It comes close to feeling like a flat-out Presley tribute album, since there's no attempt to put Perkins on par with the Pelvis. Elvis songs comprise half of the 14 songs on the standard edition, as well as five out of the 11 bonus tracks on the two-CD deluxe version.His fixation on the most famous figure in Sun's solar system isn't just a late-blooming commercial consideration: For a quarter-century, both the throb in Isaak's voice and the upturn in his greased bangs have paid inherent and ongoing tribute to the pre-Colonel-Parker King.By the strictest critical standards, "Beyond the Sun" ought to have more reinterpretation going on to be worth a nod. At times, the covers are so note-for-note perfect that the album resembles Todd Rundgren's 1970s album "Faithful," an odd experiment in trying to replicate a batch of rock classics with ridiculous exactness.But it'd be churlish to complain about his slavishness to the original Sun sound when Isaak was so to the rockabilly manor born.And, against all odds, he's self-produced a set of sides that somehow sound like they were cut in 1956 without sacrificing a bit of the increased vibrancy, dynamic range, and loudness you expect out of contemporary recordings. Sam Phillips would be proud, and so will your high-end earbuds.The more obscure the choices are, the better. That's one reason to spend a few extra bucks and pick up the two-CD version, since the bonus disc delves further into numbers unfamiliar to all but the most diehard oldies hounds.The primary CD has a few too many tracks chosen to lure the average consumer, and Isaak really doesn't bring that much to exhausted standards like "Cant Help Falling in Love," "Great Balls of Fire," or "Ring of Fire" -- though it is a kick to wait and see whether such a high-voiced singer can hit the very lowest notes that arrive late in Cash's "Walk the Line." (He does.)But even the first disc includes its share of little-known material, like "Miss Pearl," a fast-driving rave-up from Sun artist Jimmy Wages, who was definitely not part of any Million Dollar Quintet.That one's so obscure, Wages' version didn't come out till decades after he recorded it, and Isaak will delight cultists by making it a cornerstone here.On top of covering Roy Orbison and Howlin' Wolf, Isaak also throws two originals into the ring. One, "Live It Up," is a rockabilly guitar workout, while the other, "Lovely Loretta," exists primarily to pay homage to Jerry Lee Lewis' barrelhouse piano style, sequenced right on the heels on Lewis' classic "Crazy Arms."But the main draw is Elvis' lesser revived early B-sides, which it's a wonder that a Sun worshipper like Isaak didn't take a stab at 20 or 25 years ago. There's an argument to be made that rock & roll in its purest form peaked just about as quickly as it (arguably) started, with Presley's first Memphis sessions.But as much as you might hope these recordings send people back to those originals, the fierce intelligence and musical agility behind "Beyond the Sun" doesn't give folks much reason to abandon Isaak's own versions prematurely.

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A standby program for the Eurozone

By Raghuram Rajan The opinions expressed are his own. How will the eurozone crisis play out in the next few weeks? With luck, Italy may soon get a credible government of national unity, Spain will obtain a new government in November with a mandate for change, and Greece will do enough to avoid roiling the markets. But none of this can be relied upon. So, what needs to be done? First, eurozone banks have to be recapitalized. Second, enough funding must be available to meet Italy’s and Spain’s needs over the next year or so if their market access dries up. And, third, Greece, now the sickest man of Europe, must be treated in a way that does not spread the infection to the other countries on the eurozone’s periphery. All of this requires financing – bank recapitalization alone could require hundreds of billions of euros (though these needs would be mitigated somewhat if the sovereign debt of large eurozone countries looked healthier). In the short run, it is unlikely that Germany (and Northern Europe more generally) will put up more money for the others. Germans are upset at being asked to support countries that do not seem to want to adjust – unlike Germany, which is competitive because it endured years of pain: low wage increases to absorb the former East Germany’s workers and deep labor-market and pension reforms. The unwillingness of the Greek rich to pay taxes, or of Italian parliamentarians to cut their own perks, confirms Germans’ fears. At the same time, German politicians have done a poor job explaining to their people how much they have gained from the euro. But we are where we are. A glimmer of hope is Europe’s willingness to use the European Financial Stability Facility (EFSF) imaginatively – as equity or first-loss cover. Clearly, some of the EFSF funds will have to go to recapitalize banks that cannot raise money from the markets. As for the rest, the amounts that are not already committed to the peripheral countries could be used to support borrowing that can be lent onward to Italy and Spain. There is, however, no consensus about how to do this. Some propose bringing in the European Central Bank to leverage the EFSF’s funds. This is a recipe for trouble. Giving the ECB a quasi-fiscal role, even if it is somewhat insulated from losses, risks undermining its credibility. And if Italy were helped, the incoming ECB President, Mario Draghi, an Italian, would be criticized, no matter how dire Italy’s need. Moreover, financing would have to be accompanied by conditionality, and these institutions have neither the requisite expertise nor the necessary distance from the countries at risk to apply and enforce appropriate conditions. Finally, both the EFSF and the ECB ultimately rely on the same eurozone resources for their financial strength. If markets start panicking about large eurozone defaults, they could question whether even a willing Germany has the necessary capacity to support the EFSF-ECB combine. Put differently, these institutions do not offer a credible, non-inflationary, external source of strength. Indeed, the eurozone’s problems might soon become too big for its members to address. The world has a stake in their resolution. And it has an institution that can channel help: the International Monetary Fund. The IMF could set up a special vehicle along the lines of its New Arrangements to Borrow (NAB), which would be capitalized by a first-loss layer from the EFSF with the IMF’s own capital comprising a second layer. This NAB-like vehicle could borrow as needed from countries, including the United States and China, as well as tap financial markets. It would offer large lines of credit to illiquid countries like Italy, with conditionality intended to help such countries resume borrowing from markets at reasonable cost. A special vehicle is required because the amounts that must be made available far exceed what IMF members can usually access, and it is only right that if the eurozone seeks such amounts for its members, it should bear a significant portion of any potential losses. At the same time, the Fund’s capital resources would back the vehicle if the first-loss buffer provided by the eurozone were eroded; that way, the market would understand that strength from outside the eurozone can be brought to bear. The IMF is not an institution that inspires warm and cuddly feelings. But it is also not the mindless preacher of fiscal austerity that it is accused of being – and it should start taking the lead in managing the crisis, rather than holding up the rear. The eurozone needs an independent outside assessment of what needs to be done, and rapid implementation, before it is too late and the incipient bank runs become uncontrollable. Of course, the IMF cannot act without the permission of its masters, the large countries. The eurozone should suppress any wounded pride, acknowledge that it needs help, and provide quickly what it has already promised. The US should continue pushing hard for a solution. And the emerging-market countries should pitch in too, once some safeguards for their money are in place. Unresolved, the crisis will spare no one. As for the birthplace of the euro crisis, Greece’s debt will almost surely have to be restructured. But adequate funding structures for Italy and Spain must be in place before any resolution. So, while others have to step forward to do their part, it is best if Greece steps back from the brink. This piece comes from Project Syndicate.

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Apple's iPhone 4S goes on sale, fans say tribute to Jobs

* Sales start Australia, first of seven countriesSYDNEY, Oct 14 (Reuters) - Apple Inc's iPhone 4S finally hit stores around the globe on Friday, with fans expected to snap up the final gadget unveiled during Steve Jobs' lifetime, many buying the phone as a tribute to the former Apple boss."I think a lot of people are going to buy the iPhone 4S because it was the last iPhone Steve worked on," said Wil Batterham, 15, camped outside the Sydney Apple store. "People are saying it was named after him, like iPhone 4S, for Steve."Apple's 13 Australian stores will be the first to open their doors at 8.00 a.m. local time (2100 GMT, Thursday) to sell the iPhone 4S.CEO Tim Cook and his executive team hope the first device launched without Apple's former visionary leader at the helm, will safeguard their global market share lead.The iPhone 4S -- introduced to the world just a day before Jobs died -- was dubbed a disappointment because it fell short of being a revolution in design, but glowing reviews centered around its "Siri" voice-activated software have since helped it set a record pace in initial, online sales orders.Apple fans showed no disappointment in Sydney on Friday as they queued to purchase a new phone, ahead of sales in Japan, Germany, France, Britain and North America.Apple said it did not release sales figures on launch day, so gauging the initial sales may be difficult. Apple said it had taken more than 1 million online orders in the first 24 hours after its release, exceeding the 600,000 for the iPhone 4, though that model was sold in fewer countries.Some analysts expect fourth-quarter iPhone shipments of as much as 30 million or more, almost double from a year ago.Apple's fifth-generation iPhone uses chips from Qualcomm Inc , Toshiba and a host of smaller semiconductor companies, according to repair firm iFixit, which cracked the device open on Thursday.First-day sales of Apple gadgets are typically a jubilant celebration around the world, but Apple has conspicuously avoided any mention or showcase of Jobs for the iPhone 4S global sales, preferring a more "business as usual" approach.However Apple fans in Sydney made sure Jobs was part of the launch, with a small flower, candle and photo shrine outside the glass-fronted store."We decided to do it because of Steve," said Tom Mosca, 15, sitting on a sleeping mat beside the front door, where he has camped for three nights. "It was the last phone that he had an effect on and designed so we just thought it would be nice."SPEECH RECOGNITION A WINNERAnalysts say Cook needs to move out from under his former mentor's enormous shadow soon, and avoid clinging to the Jobs' mystique to preserve its brand.More immediately, with Google Inc Android phones gaining momentum, Apple needs the iPhone 4S to be a blockbuster.The iPhone -- seen as the market's gold standard -- is its highest-margin product and accounts for 40 percent of its annual revenue. It is the world's biggest selling smartphone, maintaining a slim market-share lead over Samsung's Galaxy, at 18.4 versus 17.8 percent worldwide.In a sign of how tough the competition is, two doors along from the Sydney Apple store, Samsung has been selling its new Galaxy SII for only A$2 to its first 10 customers each day, prompting Samsung fans to also camp out on the footpath.But analysts point to several factors in Apple's favor: a $199 price that matches up well with rival devices such as Amazon.com Inc's "Fire" tablet; availability promised on more than 100 carriers by the end of 2011, far more than its predecessors; and glowing reviews.Apple's iconic smartphone comes with a faster processor and a better and more light-sensitive camera, but little else to separate it from its predecessor. But tech experts say the real gems lie beneath the phone's familiar sleek casing.Influential reviewers Walt Mossberg and David Pogue raved about "Siri" -- a voice-command activated assistant that responds to spoken commands and questions in context, such as queries about the weather or a friend's phone number.But Mossberg added that "despite Siri, the iPhone 4S isn't a dramatic game-changer".

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South Korea's Lee in U.S. to talk trade, North Korea strategy

Lee has proved to be a reliable and enthusiastic U.S. ally, lining up with Washington on North Korea, Afghanistan and anti-piracy efforts in Somalia and hosting a G-20 summit aimed at stabilizing the world economy."South Korea really sort of stepped up, which is part of Lee's agenda for Korea to be more of a global player at a time when the United States wanted to see allies like Korea stepping up," said Korea expert Victor Cha of the Center for Strategic and International Studies (CSIS) in Washington.Lee's sixth meeting with President Barack Obama since 2009 will feature a full state dinner on Thursday -- following his address to a joint session of the U.S. Congress shortly after American lawmakers are expected to approve a bilateral free trade agreement that removes most tariffs between the two economies. South Korea's parliament is also debating the pact.The Obama administration has said the trade pact signed in 2007 and modified last year will create thousands of U.S. jobs and double exports to South Korea in five years. Washington hopes the trade deal will build momentum for a wider Transpacific free trade arrangement."The U.S.-Korea relationship now is about as strong as it's been in a very long time, and the passage of the KORUS -- the Korea-U.S. free trade agreement -- is really significant not only in terms of strengthening U.S.-Korea security and economic ties, but its broader import or meaning for U.S. engagement in Asia," said Michael Green, a CSIS Asia expert.RE-ENGAGING NORTH KOREAObama and Lee will visit Detroit, the home of the U.S. automobile industry, on Friday.The two presidents will also discuss ways to re-engage with North Korea. Seoul's ties with Pyongyang soured after Lee took office in early 2008 with a pledge to link large-scale aid to progress in U.S.-led international efforts to end North Korea's nuclear programs.Ties between the two Koreas further deteriorated following the North's two deadly attacks on the South last year -- the sinking of a South Korean warship and the shelling of an island near their contested maritime border.The provocations by the North, which walked away from six-country nuclear negotiations and conducted its second nuclear test in 2009, helped bring Washington and Seoul closer together.On North Korea, Lee told his parliament he would seek "principled dialogue" with Pyongyang while having "flexibility" -- a position that departs from an earlier rigid stance insisting on full reciprocity from Pyongyang."The government will make efforts to put inter-Korean relations on a normal footing and continue to prepare for peaceful unification." said Lee, who also vowed to strengthen his country's military to deter North Korea.Although Seoul's outreach to Pyongyang has not borne any fruit, Cha and other analysts expect that the United States will also resume engagement with North Korea in the hopes of moderating the North's behavior and ensuring the cooperation of the North's ally China in future regional disarmament talks."The longer that you do not engage with (North Korea), the more likely it is that they will carry out another provocation, whether that is a nuclear test or whether that is an armed conventional provocation against the South again," said Cha.