May 8, 2024

Archives for September 2016

The Workologist: How to Help a Failing Boss See the Light, if You Must


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Send your workplace conundrums to workologist@nytimes.com, including your name and contact information (even if you want it withheld for publication). The Workologist is a guy with well-intentioned opinions, not a professional career adviser. Letters may be edited.

I will be leaving my place of employment in a few months. The reason is that I am increasingly growing angry with the owner of the company.

Over the last two years, he has become very unreliable. He routinely says we are a team (the business has fewer than 12 employees), but 95 percent of the time he comes up with an excuse to be somewhere else when we need him, and he has a tendency to work on his hobbies and volunteer during work hours.

In addition, his bad decisions have negatively affected the company, its finances and its employee morale. He has lost two excellent staff members over the last year. I am tired of diplomatically trying to persuade him that he’s making poor decisions, or watching other managers try to do the same. The company is not doing well.

Out of a sense of responsibility to my staff and fellow managers, I feel compelled to express my frustration to the owner — to call him out on his behavior. But I believe this could have an adverse impact on me and my future goals. Is it wrong to just leave without saying anything else to the owner? I don’t see how I can help anymore. ANONYMOUS

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A few weeks ago, I advised a reader against sending a spirited kiss-off letter to a bullying ex-boss. Go ahead and write it as a cathartic act, I said, but keep the results to yourself. Some readers complained that this advice overlooked a departing worker’s duty to offer some critique that could ultimately correct a problem for the company and its workers. So here is a good opportunity to address that reaction while answering the larger question: What are your obligations — to your former boss, colleagues or organization — when you quit a terrible job?

I believe “none whatsoever” is a perfectly acceptable answer. More often than not, it’s smarter to think about your future, and helping your new organization, than to dwell on past disputes and worry about a company that you’re no longer part of. (Notably, I also heard from readers who have sent cathartic but critical exit notes and regretted doing so when they didn’t remain confidential, or when their target found creative ways to retaliate.)

That said, I sympathize with the desire to do right by your former colleagues if you can. So if you think that saying nothing is a decision that might leave you feeling guilty, then the trick becomes figuring out what you can say that might be genuinely productive.

In this instance, it’s not clear to me that “calling out” the owner will achieve much. It might feel satisfying, but is it the best way to encourage different behavior in the future, or will he just write it off as bitter venting?

Think about how to frame your critique in a dispassionate, constructive way. This can be difficult to do when underlying frustrations have become personal and corrosive, so try to enlist a neutral friend to help. In this case, for example, you might emphasize that the company would benefit from the kind of engagement this owner used to display. Point to a specific example or two when he was missing in action (although you are sure he had no bad intentions) and how such incidents have contributed to departures or morale. Underscore that you have no personal ill will toward him and that you offer these thoughts in the spirit of respectful candor.

Maybe this will have some effect. Or maybe he’ll ignore you. Either way, make this your final word and move on. There is nothing wrong with taking a stand and fighting for a particular vision of an organization’s future — but it’s better to do that when you still have a direct stake in it.

An Office Peace Garden

I have some plants in my office. When I travel, a colleague takes them out and places them in a communal area where she says they get more light than they would in my dark office. When I return, I move the plants back — but she takes them out again. She even took two home.

Her position is that I’m a plant killer, and the plants deserve life, not the deadly darkness of my office. She has asked me to bring in plastic plants for my office, or weekly flowers, so she doesn’t have to watch plants die. I’m at a loss. ANONYMOUS

The Workologist lacks a green thumb, so there are certain factual matters here regarding optimal plant-longevity conditions that are above my pay grade. But let’s just assume that your colleague isn’t completely wrong, and the plants really do get more necessary light in this “communal area” than they do when your office is dark and empty. Let’s also assume that you are not, in fact, a willful killer of plants.

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Obviously, she is overstepping her bounds — particularly in taking your plants home. But unless you are covertly doing research for a screenplay about a dysfunctional office, I’m guessing you don’t want this to escalate.

Instead, be respectful but firm in seeking a practical compromise. Compliment her on her knowledge of living greenery, and explain that you, too, value it as part of your daily life. Maybe she can suggest plants that require less light. Maybe you could work together to shuttle some plants back and forth if that’s necessary. Communicate that a love of plants is something you have in common, and that you are happy to absorb her wisdom on the subject. Then emphasize that this is especially true when it comes to the plants that belong, exclusively, to you.

The message should be that you welcome input — but not flat-out interference.

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Article source: http://www.nytimes.com/2016/10/02/business/how-to-help-a-failing-boss-see-the-light-if-you-must.html?partner=rss&emc=rss

Samsung accused of ‘arrogance’ and consumer ‘discrimination’ in China

© Steve MarcusLoaded laundry: Samsung washing machines exploding

According to the broadcaster, Samsung issued a video apology to US consumers, along with various replacement options and compensation while for China it has issued only a brief statement saying most phones didn’t need to be replaced.

“Samsung’s discriminatory policy has caused discontent from Chinese consumers,” CCTV said on its website, adding the tech company’s whole attitude was “full of arrogance.”

Samsung apologized on Thursday for any “confusion” and “lack of understanding” it had caused, saying “We never have and never will use a double standard toward China.”

The company began a global recall of 2.5 million Galaxy Note 7 smartphones on September 2 after reports of fires caused by defective batteries. It said the faulty batch didn’t reach China and most Note 7s on sale in the country had batteries from a different supplier. However, reports of phone explosions have caused uncertainty among Chinese consumers.

The company said it was investigating the five newly reported cases of explosions in China and urged the alleged victims to submit their phones for testing but the consumers refused to provide them.

© Jung Yeon-JE FAA officially bans ‘exploding’ Samsung phones on flights

A report conducted on Samsung’s behalf by the China Telecommunication Technology Labs has concluded that two other incidents of exploded phones did not have battery flaws and were probably damaged by external heating.

Last year, Samsung which was once the number one mobile phone vendor in China, dropped out of the top five. The Korean company is facing strong competition from domestic brands like Huawei, Xiaomi and Oppo. The Chinese companies offer devices with similar capabilities at far lower prices.

According to research firm IDC, Samsung had seven percent of the China smartphone market in the first half of this year, compared with an almost 20 percent market-leading share at the end of 2013.

In a poll conducted by Chinese research firm iiMedia Data Corp, more than half of 12,000 Chinese consumers polled said they would not buy Samsung smartphones due to the battery issue.

Article source: https://www.rt.com/business/361168-china-samsung-mobiles-discrimination/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Saudis tried to cut secret deal with OPEC – WSJ

© David MdzinarishviliOil soars as OPEC reaches deal to limit production first time in 8 years

Riyadh reportedly promised to reduce its crude output by 400,000 barrels per day, if Iran would keep production at the current level of 3.6 million barrels.

However, Iranian Oil Minister Bijan Namdar Zanganeh rejected the offer as Tehran plans to return to producing 4.2 million barrels a day, according to the newspaper.

READ MORE: Saudi Arabia puts end to pump-at-will policy

Saudi Arabia has reviewed its pump-at-will policy due to the country’s growing economic problems. Riyadh’s current position is in stark contrast to earlier this year, when former oil minister Ali al-Naimi claimed the kingdom would survive even at $20 a barrel.

Saudi Energy Minister Khalid al-Falih’s attention was drawn to OPEC’s forecast that global crude oversupply would persist into 2017, according to people close to the matter.

The prospect suggests potentially longer than expected economic pain from low oil prices for Riyadh, as the kingdom is waging an expensive war in Yemen, and middle-class living standards have dropped.

Aiming to cut costs, the Saudi government has slashed ministers’ salaries by 20 percent and abolished public sector perks.

READ MORE: Saudi Arabia cuts ministers’ salaries, reduces public sector bonuses

Moreover, the authorities are concerned over the valuation of the state-run oil company Saudi Aramco with projected prices below $50 per barrel next year. Riyadh plans to publicly list the world’s most valuable firm in 2018 as part of the economic diversification reforms.

Earlier this week, OPEC agreed to cut oil output to a range of 32.5-33.0 million barrels per day starting in November.

Article source: https://www.rt.com/business/361166-saudi-opec-secret-deal-output/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Deutsche Bank shares touch fresh record lows as big clients flee

© Kai Pfaffenbach Deutsche Bank woes stoking fears of 2008 financial crisis repeat

The share price of Germany’s biggest bank is down over ninety percent since their peak of $127.81 in April 2007.

According to Bloomberg, among the 10 hedge funds that are running from Deutsche are Izzy Englander’s $34 billion Millennium Partners, Chris Rokos’s $4 billion Rokos Capital Management, and $14 billion Capula Investment Management. However, this is a fraction of Deutsche Bank’s 800 client hedge fund business.

“In any given week, we experience ebbs and inflows. And this week is no different; it goes on all the time,” said Barry Bausano, the bank’s chairman of hedge funds, refusing to specify the flows. According to him, the hedge fund business was “still very profitable,” but said there was “no question we have a perception issue.”

Despite the acute fall, Deutsche shares rebounded within an hour, but were still losing over one percent as of 08:38am GMT.

“Our trading clients are among the world’s most sophisticated investors. We are confident that the vast majority of them have a full understanding of our stable financial position, the current macroeconomic environment, the litigation process in the US and the progress we are making with our strategy,” said Michael Golden, a spokesman for the bank.

Deutsche Bank is facing a $14 billion fine from US regulators over its mortgage-backed securities business before the 2008 global crisis. While some analysts have said the bank will be able to raise the cash on its own by selling assets, others predict it will need a bailout from the German government.

However, many German politicians are reluctant to rescue the bank, whose business abroad has resulted in billions of euro of fines for wrongdoing, which may become a burden for taxpayers.

“At the present time I would rule out any capital help. That would not be the right way to go,” Eckhardt Rehberg, parliamentary budget spokesman for the ruling conservatives told Reuters.

Article source: https://www.rt.com/business/361164-deutsche-bank-clients-run/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Berlin faces Deutsche Bank bailout dilemma

© Kai Pfaffenbach Deutsche Bank woes stoking fears of 2008 financial crisis repeat

Deutsche Bank is facing a record $14 billion fine from the US Department of Justice over the bank’s mortgage-backed securities business before the 2008 financial crisis.

The German bank’s shares have lost more than half of their value since January after it booked an almost €7 billion loss in 2015. Its market value shrank to a record low of €14.5 billion on Monday, following reports of Chancellor Merkel’s refusal to provide state aid if the bank is forced to pay the US fine.

Only a substantial intervention by the German government can stop the collapse of Deutsche Bank, according to Stefan Muller, CEO of Frankfurt-based boutique research company DGAW.

“Deutsche Bank doesn’t realize that something serious needs to happen,” he told CNBC, adding that there was no way the German government would admit to it, but, “of course there is a rescue plan, that’s their job.”

But according to a senior lawmaker in Chancellor Angela Merkel’s conservative bloc, Germany will not grant any more state aid to ailing banks, Reuters reported on Thursday.

READ MORE: Deutsche Bank refuses to pay $14bn US penalty

The German government is in a difficult dilemma over whether to save the bank whose assets are valued at about €1.8 trillion, half the size of the country’s economy.

Berlin backed itself into a corner by not allowing Italy to break eurozone rules and bail out its troubled banks.

European Central Bank president Mario Draghi, has been criticized for the ECB’s low interest rates policy and bond buying program, rejected attempts to blame him for Deutsche’s troubles.

“If a bank represents a systemic threat for the eurozone, this cannot be because of low interest rates,” he told journalists in Berlin after meeting with German politicians.

Deutsche’s problems have raised questions about the health of other big European lenders, with analysts worried the bank’s case could trigger a financial crash like that seen in 2008.

Deutsche Bank CEO John Cryan has told the media that there was “no reason to worry,” the bank had a “comfortable cushion,” and that the “state aid is not an issue.”

Article source: https://www.rt.com/business/361045-germany-aid-ailing-banks/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Saudi Arabia puts end to pump-at-will policy

A Saudi man poses with Saudi riyal banknotes at a money exchange shop, in Riyadh, Saudi Arabia. © Faisal Al NasserSaudi Arabia cuts ministers’ salaries, reduces public sector bonuses

Riyadh is facing a nearly $100 billion budget deficit, the biggest among the world’s top-20 economies. The deficit is thwarting its first international bond issue as the country is now possibly facing lawsuits from relatives of 9/11 victims after the US Congress allowed Americans to sue the kingdom over its alleged involvement in the terror attacks 15 years ago.

Before stepping down in May, the country’s former oil minister Ali Al-Naimi said the kingdom doesn’t care how deep the prices plunge, “down to $20, $40, $50, $60 a barrel – it is irrelevant.” His successor, Khalid Al-Falih, has taken a different position, saying oil prices should be higher than the current $50.

On Wednesday night, OPEC decided to slash the cartel production to 32.5 million barrels per day from the current 33.24 million. The quota for each member will be determined at the formal OPEC meeting in November.

The Saudis decided in November 2014 to stop coordinating oil output and let the oversupplied market decide prices. The move was intended to oust high-cost oil producers, such as US shale.

© David MdzinarishviliOil soars as OPEC reaches deal to limit production first time in 8 years

“The big takeaway is how into a corner the Saudis have backed themselves. This whole plan has backfired on them. They’re going to be bearing most of the cutback if they pull it off, and they’ve had to really kowtow to the Iranians in this whole thing,” Again Capital founding partner John Kilduff told CNBC on Wednesday.

OPEC and other major oil exporting countries tried to negotiate a production freeze in April. However, the meeting in Doha ended without an agreement as Iran refused to join the talks, and Saudi Arabia rejected a deal without OPEC’s third largest producer.

Saudi Arabia softened its stance before this week’s Algeria meeting, reportedly offering to curb its own output, if Iran agrees to freeze at roughly 3.6 million barrels per day. Iranian Oil Minister Bijan Namdar Zanganeh said the country will not stop increasing output until it reaches 4 million. However, the accord still went through.

The news pushed oil prices six percent higher before slightly retreating on Thursday. As of 9:00am GMT, Brent crude was down 47 cents, trading at $48.22 per barrel, while US benchmark West Texas Intermediate was losing 26 cents at $46.79.

Article source: https://www.rt.com/business/361040-saudi-arabia-oil-production/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Your Money Adviser: Income, Not Driving Record, May Determine Auto Insurance Cost

Some motorists with high incomes but bad driving records may pay less for car insurance than lower-income consumers with pristine records, a new analysis has found.

Using websites for five major insurers in 10 big cities, researchers with the Consumer Federation of America, an advocacy group, obtained quotes for two hypothetical drivers with different socioeconomic attributes.

The analysis found that in 20 of 38 tests (53 percent), a moderate-income driver with a clean record was charged more for basic auto liability insurance than a high-income driver who caused an accident in which someone was injured.

The auto insurance industry, however, criticized the report as “flawed” and said that all the underwriting factors used by insurers “are proven to increase the accuracy” of predicting loss.

The researchers requested 600 quotes for coverage and received 464. In some instances, an insurer did not offer policies in a particular city. In other cases, the website declined to offer a quote for the lower-income driver. In others, a company would not provide a quote for either driver.

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The analysis also found that in 21 of 30 tests (70 percent) in which a comparison was possible, a moderate-income driver with a clean record was quoted a higher rate for basic coverage than a high-income driver with a recent drunken-driving conviction.

“It is profoundly unfair,” J. Robert Hunter, director of insurance for the consumer federation, said in a call with reporters. The organization opposes the use of nondriving-related factors in setting rates for auto insurance, given that minimum liability coverage is required most states.

David Snyder, vice president of policy development and research with the Property Casualty Insurers Association of America, said insurers did not consider income in setting auto rates. Insurers consider numerous criteria, he said, like a driver’s age and driving history, because they help in the proper pricing of premiums. “We use a factor because it predicts risk,” he said.

Mr. Snyder also said the comparison of the two hypothetical drivers was flawed because only the moderate-income driver was assigned, as a characteristic, a gap in coverage — she lacked insurance for the previous six months because she did not have a car. Such a gap would generally affect quoted premiums, regardless of the driver’s other attributes, he said.

The federation, however, says that socioeconomic factors considered by insurers to set rates, such as occupation and education, are proxies for income. In its analysis, the group assigned one of the hypothetical drivers certain attributes typical of an upper-income American, including having a master’s degree and a job as a bank executive; it gave the other a high school diploma and work as a bank teller. (The “tested” drivers shared certain basic characteristics: Each was female, 30 years old, licensed for 14 years and drove a 2006 Toyota Camry 10,000 miles a year.)

The study found that quotes varied among the insurers — Allstate, Farmers, Geico, Progressive and State Farm. State Farm was the most likely to charge the good driver less, regardless of socioeconomic status, the analysis found.

Progressive and Geico, the report said, were more likely to charge upper-income bad drivers less than good drivers with moderate incomes. In Queens, for example, Progressive quoted $6,404 for the moderate-income clean driver and $3,020 for an upper-income driver with a drunken-driving conviction. Progressive declined to comment.

Geico referred a request for comment to the Insurance Information Institute, which publishes a list of criteria used to set auto rates.

James Lynch, chief actuary with the Insurance Information Institute, an industry group, said the researchers’ methodology did not necessarily reflect what actually happened in the marketplace. For instance, he said, it was difficult for someone with a drunken-driving conviction to obtain coverage at all, never mind at a rate lower than that of a safe driver.

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Doug Heller, an insurance expert with the federation and an author of the study, said he agreed that it was harder for a driver with an alcohol conviction to find coverage but added that it was generally easier than it once was to get insurance with a bad driving record.

Los Angeles was the only market in which the safer but less affluent driver consistently paid less for coverage than the wealthy driver with the bad record, the study found. Mr. Heller said that was because California had strong consumer protections governing auto insurance rates. The state, for instance, explicitly bars the use of a driver’s previous insurance coverage history in setting rates, he said.

Here are some questions and answers about auto insurance rates:

Can I obtain rate information from my state’s insurance department?

Most state insurance departments have websites that offer estimated premium ranges as well as complaint data, said Elizabeth Renter, who recently conducted an analysis of the sites’ offerings for the financial website NerdWallet. But states differed widely in the information they made available, she said, and how accessible it was to consumers. Texas’ site scored at the top of the ranking, while New Mexico’s scored at the bottom.

How can I find the best auto insurance rate?

The industry and consumer advocates agree that shopping around and getting quotes from several insurers is important in finding the best price for the coverage you need.

What if I have a good explanation for a gap in my insurance coverage?

Mr. Snyder said one of his concerns with the federation’s study was that it did not reflect the “real world” of what happened after the consumer obtained an online quote. If, for instance, a veteran did not have insurance for a time during a military tour of duty, he or she should discuss the situation with the insurer, he said. “If you have an explanation,” he said, “bring it up with the company.”

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Article source: http://www.nytimes.com/2016/09/29/your-money/income-not-driving-record-may-determine-auto-insurance-cost.html?partner=rss&emc=rss

Oil soars as OPEC reaches deal to limit production first time in 8 years

OPEC made an exceptional decision today. After two and a half years, OPEC reached consensus to manage the market,” Iranian Oil Minister Bijan Zanganeh has said on Wednesday, as cited by Reuters news agency.

We have decided to decrease the production around 700,000 barrels per day,” Zanganeh added.

Shaybah oilfield complex is seen at night in the Rub' al-Khali desert, Saudi Arabia © Ali Jarekji Oil markets cautiously optimistic ahead of output freeze talks

The cartel estimates its current output at 33.24 million barrels per day. 

Reuters reports that OPEC will settle production levels for each member country at the next formal meeting, set to be held in Vienna on November 30. It will be the first reduction in eight years.

One of the sources also told Reuters that after reaching the target production rate, OPEC will turn to non-OPEC producers for output support.

Representatives of the OPEC countries are currently in Algeria attending the International Energy Forum.

The agreement to cut production among the world’s largest oil producers could lead to oil supply coming more in line with the demand for the energy source.

Following the reports of OPEC’s decision, the price for futures for Brent crude oil has gone up by nearly 6 percent, to $48.72 per barrel on the ICE stock exchange in London by 6:28 pm GMT.

US West Texas Intermediate (WTI) crude oil also rose by 5.4 percent, to $47.02.

US energy stocks have also , with the energy sector gaining 3.9 percent, the most among the SP 500 11 sectors. The benchmark index is up eight points (0.39 percent), the Dow is up 89 points (0.48 percent), and the Nasdaq is up six points (0.13 percent) as of 6:28pm GMT. 

Spot gold prices fell 0.4 percent, to $1,322.35 an ounce.
The Dow Jones industrial average rose 0.61 percent and the Nasdaq Composite added or 0.24 percent.

Meanwhile the euro exchange rate against the Russian ruble on the Moscow stock exchange fell by 89 cents compared with the level it had at the closing of the previous trading session and reached 70.74 rubles per one euro.

The Russian ruble also rose in price against the US dollar by 1 percent, or 79 cents.

Last week Iran, OPEC’s third-largest producer with a daily output of 3.6 million barrels in August, declined a suggestion from Saudi Arabia that it freezes production at January levels if Tehran agrees to do the same. Tehran said it will continue increasing oil output until it produces four million barrels a day.

On Tuesday, however, Saudi Oil Minister Khalid Al-Falih signaled that it may accept the idea that Iran maintains its output at maximum levels but said it doesn’t expect an agreement to be reached this week, stating that a deal in November is possible.

The politics behind the OPEC agreement is even more important than the economics, believes Mark Thornton, senior fellow at the Ludwig von Mises institute.

“This is a sign that the Middle East is starting to move in [the direction of] cooperation,” Thornton told RT. “Their backs [are] against the wall, and I think they realize that cooperation right now in oil, and questions of peace are very important … these are signs that an era of cooperation in the Middle East is starting to emerge, and I think the Iranians especially realize that.”

It is Saudi Arabia who is “desperate” to reach a deal and is losing the most from it, believes the publisher of the Trends Journal, Gerald Celente.

“It’s Saudi Arabia’s desperation. Their policy that they put in place in 2014, when oil prices began to go down, was to drive out high cost producers, and it’s failed,” Celente told RT. “Saudi Arabia is now facing a budget deficit of $100 billion a year, you see strikes going on from people not getting paid, they’ve just cut back on government employee raises, bonuses, etc. And 70 percent of Saudi people are employed by the government. So it is Saudi Arabia that is really beginning to bend, because they are in a financial crisis and waging war in Yemen … so I think they’re the ones that are trying to come to a deal.”

The negotiations between OPEC representatives that lasted some six hours ended with a press conference during which the Head of OPEC Mohammed Bin Saleh Al-Sada called the decision a “historical” one. Al-Sada added that a special committee had been set up to consider the output share of each member nation and coordinate a collective agreement with non-OPEC producers.

Article source: https://www.rt.com/business/360988-opec-deal-limit-oil/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

OPEC reaches deal to cut oil output first time in 8 years

OPEC made an exceptional decision today. After two and a half years, OPEC reached consensus to manage the market,” Iranian Oil Minister Bijan Zanganeh has said on Wednesday, as cited by Reuters news agency.

We have decided to decrease the production around 700,000 barrels per day,” Zanganeh added.

Shaybah oilfield complex is seen at night in the Rub' al-Khali desert, Saudi Arabia © Ali Jarekji Oil markets cautiously optimistic ahead of output freeze talks

The cartel estimates its current output at 33.24 million barrels per day. 

Reuters reports that OPEC will settle production levels for each member country at the next formal meeting, set to be held in Vienna on November 30. It will be the first reduction in eight years.

One of the sources also told Reuters that after reaching the target production rate, OPEC will turn to non-OPEC producers for output support.

Representatives of the OPEC countries are currently in Algeria attending the International Energy Forum.

The agreement to cut production among the world’s largest oil producers could lead to oil supply coming more in line with the demand for the energy source.

Following the reports of OPEC’s decision, the price for futures for Brent crude oil has gone up by nearly 6 percent, to $48.72 per barrel on the ICE stock exchange in London by 6:28 pm GMT.

US West Texas Intermediate (WTI) crude oil also rose by 5.4 percent, to $47.02.

US energy stocks have also , with the energy sector gaining 3.9 percent, the most among the SP 500 11 sectors. The benchmark index is up eight points (0.39 percent), the Dow is up 89 points (0.48 percent), and the Nasdaq is up six points (0.13 percent) as of 6:28pm GMT. 

Spot gold prices fell 0.4 percent, to $1,322.35 an ounce.
The Dow Jones industrial average rose 0.61 percent and the Nasdaq Composite added or 0.24 percent.

Meanwhile the euro exchange rate against the Russian ruble on the Moscow stock exchange fell by 89 cents compared with the level it had at the closing of the previous trading session and reached 70.74 rubles per one euro.

The Russian ruble also rose in price against the US dollar by 1 percent, or 79 cents.

Last week Iran, OPEC’s third-largest producer with a daily output of 3.6 million barrels in August, declined a suggestion from Saudi Arabia that it freezes production at January levels if Tehran agrees to do the same. Tehran said it will continue increasing oil output until it produces four million barrels a day.

On Tuesday, however, Saudi Oil Minister Khalid Al-Falih signaled that it may accept the idea that Iran maintains its output at maximum levels but said it doesn’t expect an agreement to be reached this week, stating that a deal in November is possible.

The politics behind the OPEC agreement is even more important than the economics, believes Mark Thornton, senior fellow at the Ludwig von Mises institute.

“This is a sign that the Middle East is starting to move in [the direction of] cooperation,” Thornton told RT. “Their backs [are] against the wall, and I think they realize that cooperation right now in oil, and questions of peace are very important … these are signs that an era of cooperation in the Middle East is starting to emerge, and I think the Iranians especially realize that.”

It is Saudi Arabia who is “desperate” to reach a deal and is losing the most from it, believes the publisher of the Trends Journal, Gerald Celente.

“It’s Saudi Arabia’s desperation. Their policy that they put in place in 2014, when oil prices began to go down, was to drive out high cost producers, and it’s failed,” Celente told RT. “Saudi Arabia is now facing a budget deficit of $100 billion a year, you see strikes going on from people not getting paid, they’ve just cut back on government employee raises, bonuses, etc. And 70 percent of Saudi people are employed by the government. So it is Saudi Arabia that is really beginning to bend, because they are in a financial crisis and waging war in Yemen … so I think they’re the ones that are trying to come to a deal.”

The negotiations between OPEC representatives that lasted some six hours ended with a press conference during which the Head of OPEC Mohammed Bin Saleh Al-Sada called the decision a “historical” one. Al-Sada added that a special committee had been set up to consider the output share of each member nation and coordinate a collective agreement with non-OPEC producers.

Article source: https://www.rt.com/business/360988-opec-deal-limit-oil/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Maine’s ‘Clean’ Medical Marijuana: ‘Organic’ in Disguise

Some medical marijuana users may not care if the product they buy is certified as clean; their primary concern is whether it meets their needs. But growers like Ms. Haywood see the distinction as an opportunity in an intensely competitive market.

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D.J. Taylor, a master cannabis gardener, trims harvested marijuana buds. Credit Tristan Spinski for The New York Times

Maine’s caregiver program is growing quickly, up nearly 150 percent to 2,921 growers in 2015, from 1,197 in 2013. It is also competing with a parallel network of eight marijuana dispensaries in the state. If Maine voters approve a citizens’ initiative in November, marijuana will be legalized, and competition will probably increase exponentially.

Prices are flat already. Ms. Haywood typically sells her marijuana for $10 a gram (0.035 ounce), but other growers are charging less and offering discounts for buying by the ounce. Margins are tight, but the business provides growers with a steady, if small, income, Ms. Haywood said, adding that she earns less than $30,000 a year after costs.

“I feel like anybody who uses anything that is not organic, whether it’s food or smoke, or whatever, they are making a mistake,” said Dawson Julia, 45, another grower. “I feel like it’s a bad health choice.” (The fit-looking Mr. Julia offered this health tip: “I work 14 hours a day, and I smoke a lot of cannabis, so that’s my secret. No gyms allowed.”)

Getting the certification, however, was an arduous process in Maine.

Mr. Julia, who owns East Coast CBDs, which is housed in a warehouse in the small town of Unity, Me., is a longtime marijuana user. He said the state’s medical marijuana program, approved by citizens’ initiative in 2009, allowed him to turn his passion into a livelihood. “When it passed on the ballot, it was like a dream come true,” he said.

Mr. Julia sowed the seeds for the clean certification program in 2013. He was one of the first growers to approach the Maine Organic Farmers and Gardeners Association about it. The industry association has 11,000 members and a staff of 30, and it has been certifying Maine farms as organic since 1972.

“I called thinking I was just going to sign up for the program, you know, ‘I want to grow organic marijuana, where do I get the paperwork?’”

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That is when he learned that the word “organic” is defined by the Department of Agriculture’s National Organic Program, which sets the standards for certification. Marijuana, still illegal under federal law, is not a crop the program recognizes (tobacco, however, is).

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Harvested and dried marijuana buds await trimming. Credit Tristan Spinski for The New York Times

Mr. Julia was undeterred. If the Maine association had no program for marijuana, he thought it could start one. If growers could not use the organic label, they would use another.

He found an ally in the board member John Krueger, a gardener who grows much of his own food and once ran the Maine Health and Environment Testing Laboratory. Mr. Krueger said he saw parallels between this new generation of marijuana growers and his peers in Maine’s 1970s back-to-the-land movement. They convened a committee, which included Ms. Haywood.

After dozens of meetings over two and half years, the certification plan was started in August as a one-year trial. The plan follows the United States Department of Agriculture standards. Plants must be grown in soil (hydroponics do not qualify) and fertilized with natural nutrients, and pesticides are tightly restricted.

But Mr. Julia does not expect to increase his prices as a result. “Just because I got a certificate that says this is official, clean cannabis, I’m absolutely not going to charge any more,” he said. “If anything, it’s an incentive to help inspire other people to follow our lead.”

Maine is following the lead of Western states, where the industry is more mature. Clean Green Certified has been certifying marijuana in five Western states since 2004, including 20,000 pounds in 2015. And Colorado’s Organic Cannabis Association has developed a pesticide-free certificate.

Amy Andrle, of L’Eagle Services, which grows and sells marijuana in Denver, serves on the association’s board. She said as pot consumers are becoming more sophisticated, “there’s nothing like the value of a third-party certifier” to give growers a marketing edge.

Certification is just one tricky aspect of an industry that Ms. Haywood said was fraught with complexity.

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Dawson Julia, right, and Bernard Dozier chat at the Common Ground Fair in Unity, Me.

Credit Tristan Spinski for The New York Times

For one thing, she cannot open a business bank account. Banks are closely scrutinized over illegal drug-trafficking, which has posed a vexing problem for legal businesses. Visa and MasterCard will not process transactions for marijuana dispensaries, and most banks will not open accounts for the businesses.

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Proposed state regulations pose another hurdle. Ms. Haywood has visited the State House in Augusta dozens of times in the last few years and submitted many pages of testimony to fight increased regulation, which she calls “legislative overreach.”

Mr. Julia and his wife are both classified as caregivers, so their operation can be twice as large as Ms. Haywood’s. Each caregiver can serve as many as five patients and grow up to six flowering plants for each.

Mr. Julia’s warehouse holds 60 flowering plants. Many others are immature, spread out in a rabbit warren of rooms painted white, with bright lights and ventilation ducts hanging from the ceiling. But there is little opportunity to grow further largely because of staffing issues and state limitations. “My business is maxed out,” he said. “We turn away new patients now, because we can’t grow enough to keep up with everybody.”

One restriction is a state regulation that allows each caregiver to hire just one employee, so Mr. Julia and his wife may hire only two others.

“It’s frustrating,” Mr. Julia said. “Because I’ve got employees that are working 60 to 65 hours a week, and I’ve got to pay overtime, and they are getting burnt out. Meanwhile, we’ve got customers that are expecting products and service.”

Security is another challenge. Even though his operation is in the heart of a small town, he has been robbed twice. But he said he also feels the squeeze from law enforcement. When state regulators came to inspect his business recently, Mr. Julia said, they brought a small convoy from the county sheriff’s office, though he was not cited for any infraction.

Ms. Haywood says she often feels in limbo. “I feel the heavy hand of government, and kind of an eye in the sky always watching me,” she said. “And I feel, frankly, like I’m a criminal, yet a business owner at the same time. It’s a dichotomy that I deal with every day.”

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Article source: http://www.nytimes.com/2016/09/29/business/smallbusiness/maines-clean-medical-marijuana-organic-in-disguise.html?partner=rss&emc=rss