Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary “reading list” which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for “reading list” items are gratefully reviewed, although sometimes space limits the number included.
- Deal is a historic shift for IBM (Craig Wolf, Poughkeepsie Journal) A deflating world is an amazing thing: The ECB (European Central Bank) pays negative interest rates deposits (that means depositors pay a “storage” fee rather than have interest credited to their accounts). The latest occurrence is IBM selling an “asset” and paying the “buyer” $1.5 billion for taking ownership.
IBM is “selling” its semiconductor manufacturing business to Global Foundries (GF). IBM fab facilities (manufacturing plants) in East Fishkill, NY and Essex Junction, VT with an estimated 5,000 or more employees are involved. Only manufacturing has been sold; Semiconductor research and development will continue as an IBM business. ‘Behind the wall’ discussion today is devoted to aspects of this deal.
- Amazon’s Monopsony Is Not O.K. (Paul Krugman, The New York Times) Prof. Krugman says that that when it comes to books, Amazon has “robber-baron-type market power“. He has the following citation as an example:
Back in May a dispute between Amazon and Hachette, a major publishing house, broke out into open commercial warfare. Amazon had been demanding a larger cut of the price of Hachette books it sells; when Hachette balked, Amazon began disrupting the publisher’s sales. Hachette books weren’t banned outright from Amazon’s site, but Amazon began delaying their delivery, raising their prices, and/or steering customers to other publishers.
- Articles about conflicts and disease around the world
Gaza and Israel
Gaza plan ‘relieves Israel of responsibility’ (Al Jazeera)
Benghazi suspect enters not guilty plea (Al Jazeera)
Turkey Says It Will Aid Kurdish Forces in Fight for Kobani (The New York Times)
Obama’s unpopular Islamic State strategy is the only sensible plan (The Conversation)
Dozens Are Killed in Attacks on Shiite Targets in Iraq (The New York Times)
Summary executions but no ‘mass graves’ found in Ukraine, report finds: Amnesty International says both sides of conflict guilty of extrajudicial killings, but scale has been ‘exaggerated’ (Al Jazeera)
Poland’s Sikorski under fire over Russia interview (Associated Press, Yahoo! News)
Russia prepares for ice-cold war with show of military force in the Arctic Vladimir Putin sends troops and jets to oil- and gas-rich region also coveted by Canada, United States, Norway and Denmark (The Guardian)
Mexican drug cartels are worse than ISIL (Al Jazeera)
There are 11 articles discussed today ‘behind the wall’. All articles discuss the IBM – Global Foundries deal.
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