Greece is having a discussion that it has never had before

• Reuters

• 5h
• 3,173
 
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REUTERS/Alkis KonstantinidisGreek Prime Minister Alexis Tsipras looks on as he arrives to welcome Portugal's Prime Minister Antonio Costa (not pictured) at the Maximos Mansion in Athens, Greece April 11, 2016.

AMSTERDAM (Reuters) - Greece and its international lenders are unlikely to reach an agreement on Friday that would unlock further loans and pave the way for debt relief talks, despite some progress made in talks on reforms, euro zone officials said on Friday.

"I'm hearing good news from Athens, so let's see where we are," the chairman of euro zone finance ministers Jeroen Dijsselbloem told reporters.

"If we make progress on the content of the program and the next steps then we need to start the discussion on debt. We're only at the beginning of that discussion, so don't expect any deals today," he said on entering a meeting with euro zone ministers.

"Debt is a discussion we've not had before. The only thing we had was a promise that if the Greeks would commit fully and deliver on the program we would look at, if necessary, further debt measures," he said.

The head of the International Monetary Fund Christine Lagarde struck a more pessimistic tone on Friday, saying that Greece and its lenders had made some progress towards an agreement on reforms, but not enough to unlock new loans or start talks on vital debt relief.

"There is more work to be done. We are determined to continue the work. We're not there yet," Lagarde said on arriving for a meeting of euro zone finance ministers. "There is more to be done and a debt sustainability to be agreed upon as well. It's critically important."

Germany and several other countries, including Finland and Slovakia, oppose debt relief for Athens, arguing it is not necessary. The IMF believes that without it, Greek debt will not be sustainable.

Thomson ReutersLagarde participates in a news conference at the IMF/World Bank Spring Meetings in Washington

German Finance Minister Wolfgang Schaeuble said that discussions would not be concluded on Friday but that progress was being made. He added that the focus was on Athens implementing its bailout agreement rather than on debt relief.

"If Greece implements what was agreed last year - and we're working on that - then there will be no need to discuss this topic," he said when asked about debt relief.

For Lagarde though, debt relief is critically important. "That program has to walk on two legs. There has to be sufficient reforms and we are making progress on that front, some progress, and there has to be debt sustainability at the end of the day and on that front we have not yet started the discussion," Lagarde said.

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

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Europe is going backwards

• Will Martin
 

• 6h
• 595

Wikimedia

The economy in Europe is "stuck in a slow growth rut" and the continent is essentially going backwards, according to the latest PMI data released by Markit on Friday morning.

According to Markit, the eurozone saw a composite PMI reading of 53, slower than the month before, and lower than the reading that had been expected, 53.2.

The purchasing managers index (PMI) figures are given as a number between 0 and 100. Anything above 50 signals growth, while anything below means a contraction in activity — so the higher the better. Friday's data is what Markit calls flash, meaning that the readings could be revised either up or down when the final readings drop at the end of the month. 

Markit's statement alongside the data said (emphasis ours):

The eurozone continued to show only modest growth in April, according to the latest flash PMI data. The Markit Eurozone PMI dipped from 53.1 in March to 53.0 in April, according to the preliminary reading based on approximately 85- 90% of normal monthly replies.

The PMI suggests the pace of economic growth at the start of the second quarter is marginally weaker than the average seen in the first quarter, and slightly slower than the average seen last year.

That line is key. Markit is essentially suggesting that the eurozone is going backwards when it comes to growth.

Here's what Chris Williamson, Markit's chief economist had to say (emphasis ours):

The eurozone economy remains stuck in a slow growth rut in April, with the PMI once again signalling GDP growth of just 0.3% at the start of the second quarter, broadly in line with the meagre pace of expansion seen now for a full year.

A failure of business expectations to revive following the ECB’s announcement of more aggressive stimulus in March is a major disappointment and suggests that the modest pace of growth is unlikely to accelerate in coming months.

Here are the headline eurozone figures:

• Composite PMI: 53 against an expected 53.2, and 53.1 in March.
• Services PMI: 53.2, a two-month high. Economists had forecast a reading of 53.3, up from 53.1 last month.
• Manufacturing PMI: 51.5. Expectations were for a reading of 51.8, a small margin of growth from March's 51.6.

Markit's chart shows just how much Europe is struggling to find substantially, sustainable growth right now. Take a look:

Markit

As well as the headline figures, Markit released data individually on the eurozone's two biggest economies. Here's how things look in Germany and France.

• German Composite: 53.8, down from 54 in March, a nine-month low.
• German Manufacturing: 51.9, up from 50.7 in March and a three-month high.
• German Services: 54.6, a six-month low, and a miss on expectations of the 55.2 predicted.
• French Composite: 50.5, a five-month high and well above March's reading of 50.
• French Manufacturing: 48.3, missing expectations of 49.8, and a sharp contraction from last month.
• French Services: 50.8, up from 49.9 in March, and higher than the 50.2 reading expected.

The PMI figures come just a day after European Central Bank president Mario Draghi reiterated his belief that the bank's monetary policy measures are working to address sluggish growth and inflation in Europe.

"Overall, our measures in place since June 2014 have clearly improved borrowing conditions for firms and households" Draghi said at a press conference after the ECB left all of its bases rates unchanged on Thursday.

Draghi did admit however, that risks to growth in the eurozone are "tilted to the downside."

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SCHLUMBERGER: The oil industry will continue to deteriorate

• Akin Oyedele
 
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• 18h
• 5,575
 
• 2

Andrew Burton/Getty Images

Schlumberger just reported its first-quarter earnings and restated its bearish near-term outlook on the oil industry.

The world's largest oilfield-services company posted adjusted earnings per share (EPS) of $0.40, with a 63% year-on-year drop in net income, excluding charges and credits to $501 million.

Revenues fell 36% compared to last year to $6.52 billion. 

Analyst expectations were for adjusted EPS of $0.39 on revenues totaling $6.51 billion. So it was a beat on earnings, with revenues coming in more or less in line.

In the earnings release, the company said the oil industry would continue to be characterized by a supply-demand imbalance.

CEO Paal Kibsgaard said (emphasis added),

During the first quarter of 2016, the decline in global activity and the rate of activity disruption reached unprecedented levels as the industry displayed clear signs of operating in a full-scale cash crisis. Budgeted E&P spend fell again and substantially affected our operating results. This environment is expected to continue deteriorating over the coming quarter given the magnitude and erratic nature of the disruptions in activity.

Kibsgaard further said recent surveys on exploration and production spending showed sharper declines than previously expected.

"In navigating this landscape, we remain focused on balancing market share against profitability while also working to best preserve the core capabilities of the company for the long term," he said. "We will continue to tailor costs and resources to activity, while remaining cautious in adding back capacity given the unpredictable nature of the current market."

Two weeks ago, Schlumberger reaffirmed its expectation for quarterly revenues and said it would reduce operations in Venezuela, after the country's national oil company failed to pay up.

Venezuela's economy has been trounced by the slide in oil prices, as have Schlumberger 's profits.

Schlumberger shares had jumped 15% year-to-date through Thursday's market close, but were down 12% over the past year. They rose by as much as 1% in after-hours trading.

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Anyone who wants to be president needs to understand these 5 maps

• Parag Khanna, "Connectography: Mapping the Future of Global Civilization"

• 1h
• 13,016
 
• 2

Maps shape how we see the world.

But most of the maps hanging on our walls are dangerously incomplete because they emphasize political borders rather than functional connections.

The world has less than 500,000 kilometers of borders.

By comparison, it has 64 million km of highways, 4 million km of railways, 2 million km of pipelines and more than 1 million km of Internet cables ­­all part of a rapidly expanding global infrastructural Matrix.

As such, in the 21st century, we need maps that show connections over divisions, for these reveal not only how we cooperate across borders, but also the valuable corridors of energy, trade and data that we compete over.

Here are 5 of the most important maps for the future. The next president would be wise to study them carefully.

These maps are part of a set designed exclusively for the publication of Parag Khanna's new book, "Connectography: Mapping the Future of Global Civilization."

View As: One Page Slides

Here is the map Donald Trump doesn’t seem to understand.

Parag Khanna, Connectography

Here is the map Donald Trump doesn’t seem to understand. No matter what walls he may seek to expand along the Mexican border, the truth is that both the Mexican and American populations along the border have risen by 20 percent in the past decade.

Why? Because business is booming between Mexico’s fast-­growing market and American businesses. That’s not all. Even though the XL pipeline failed, there are already dozens of freight rails, pipelines, electricity grids and trade corridors that unite the US, Canada, and Mexico, which has just welcomed huge American investment to modernize its oil industry. American car companies are thriving in Mexican factories, but this is actually creating American jobs producing high­quality auto­parts.

Now fast forward and think about droughts caused by climate change wiping out much of America’s breadbasket region. It turns out that Canada will be the world’s largest food producer as temperatures rise and its permafrost thaws, meaning it will become America’s principal source of both food and freshwater through the massive hydro­canals featured in this map. Americans should embrace the emergence of a genuine North American Union.

Source: Connectography

China is now the top trade partner for twice as many countries as America.

Parag Khanna, Connectography

Globalization has catapulted China to superpower status. It is now the top trade partner for twice as many countries (124) as America (56). While many strategists focus on China’s mostly regional military maneuvers, the supply chain complementarities it has built worldwide are the true source of its leverage.

China may have only one aircraft carrier, but it operates by far the world’s largest merchant navy of more than one thousand tankers and shipping vessels that ply these global trade routes. Even as China’s imports slow, it continues to be the fastest growing global investor, boosting its ownership of factories and ports, banks and telecoms along these same axes, so don’t bet on its influence diminishing just because its growth has decelerated. 

What this map also reveals is that even as the US pursues a TPP trade agreement with many Asian countries other than China, it may yet benefit China, which will use its strong linkages into these economies to create joint ventures that more easily access the US market without forcing its own companies to reform the way TPP requires.

Source: Connectography

Does it really make sense for America to be organized as 50 states anymore?

Parag Khanna, Connectography

Does it really make sense for America to be organized as 50 states anymore? Countries from China to Italy to France and Great Britain are all reorganizing themselves around viable urban centers, metropolitan regions centered on large and productive cities. America needs to do the same.

This map shows how the US is actually made up of about seven distinct economic regions, each with anchor cities such as Los Angeles, Chicago or New York. Rather than rich states, paying taxes to Washington which then gives meager hand­outs to poor states, America’s economic system ­­and even politics ­­could be rearranged to reflect this reality of mega­urban corridors and their dependent regions. At the same time, America’s strength comes from connecting efficiently across this vast scale, hence the need for high­speed rail networks crisscrossing the continent to form a much more dynamic United City ­States of America.

Source: Connectography

The grand strategy America will find very difficult to contain.

Parag Khanna, Connectography

The Chinese­-led Asian Infrastructure and Investment Bank (AIIB) was not just a big geopolitical story of 2015, but it will be in 2020 and 2025 as well. More than 60 countries have signed on to China’s plan to build “iron Silk Roads” from Shanghai to Lisbon. President Obama badly misplayed the Bank’s launch, choosing to oppose it.

But in the decade ahead, these mega-projects that extend Chinese influence from Russia to Turkey will continue. This map shows many of the potential oil and pipelines, railways, electricity grids, water canals and other infrastructures emerging from Korea to Iran, bringing to life how even though China has more neighbors than any country in the world, and has serious tensions with many of them, its long-term strategy is to pave across them to access their resources and markets rather than invade them.

This is the kind of grand strategy America will find very difficult to contain ­especially since all of the countries involved actually want these projects to continue. Indeed, Europeans are among the biggest beneficiaries due to their large engineering companies winning big contracts.

As European trade with China nearly equals that with the US, connectivity across Eurasia is starting to compete with culture across the Atlantic. Students are taught that Europe and Asia are two continents, but 21st century infrastructure is making it one efficiently connected landmass.

Source: Connectography

The Mideast needs a whole new map — one focused on connectivity rather than division.

Parag Khanna, Connectography

The Middle East continues to crumble, and the next American administration may inherit an even wider swatch of crises. Jordan, Lebanon and even Saudi Arabia could fail through a combination of ISIS attacks and the oil price collapse.

Exactly a century after the Sykes­-Picot agreement that created the Mideast’s artificial borders, the region needs a whole new map, one focused on connectivity rather than division. Indeed, almost all the 400 million people of the Arab world live in cities, thus the Arab map should be much more one of connected oases than divided tribes.

This map shows the many current, half-­built and potential pipelines, water canals and electricity grids that can correct Arab societies’ vast mismatches between those that are water­rich and water­poor, energy­rich and energy­poor. Instead of letting the Arab Spring become a Thirty Years War, now is the time to get Europeans and China, Iranians and Turks, and even Israel involved in building the infrastructures Arab societies need to create jobs, diversify their economies, stabilize the region and contribute to trade and energy security worldwide.

Source: Connectography

This company secretly runs the internet, and now it's raised another $8 million to rule everything else, too

• Matt Weinberger
 
•  

• 18h
• 24,817
 
• 6

NginxNginx CEO Gus Robertson.

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Nginx — pronounced "Engine-X" — one of the most important startups you've never heard of, has raised $8 million from Australian telecom giant Telstra to extend its reach even further.

As it stands right now, Nginx's flagship web-server technology is immensely popular, with 150 million websites using it.

In fact, 49.2% of the top 1,000 busiest websites in the world use Nginx to handle the heavy lifting of delivering web pages to a browser, as measured by tracking authority W3Techs.

That's far ahead of Microsoft's competing IIS, which powers 6.8% of those top 1,000 websites, Google servers, which claims 9.8%, and the Apache web server, which is still the most popular overall but can't match Nginx's supremacy of the very top, with 26.6%.

Even NASA used Nginx to power the website that streamed the footage from the NASA Curiosity Mars rover, under the crushing loads of millions of people trying to watch simultaneously. We use it internally at Business Insider, too: If you're reading this article, you're using Nginx.

Furthermore, Nginx has risen even further with the rise of so-called microservices — a Silicon Valley trend for building software from lots of little pieces instead of one big one. Nginx's technology plays a crucial role in coordinating all of those pieces, no matter what other vendor's technology they're using.

"We innovate around us," says Nginx CEO Gus Robertson.

With the involvement of Telstra, Nginx is planning on taking its business international. Telecommunications companies like Telstra are big fans of Nginx's technology, says Robertson, plus they have connections in Australia and beyond. So now is the time to go global, with Telstra's assistance.

Room to grow

But Nginx's popularity also puts it in a difficult position. Most of those Nginx fans are using the free, open-source version of Nginx, where they never have to pay the company a dime for the software. It's a similar struggle faced by hot companies like Docker and Canonical.

To actually make money, Nginx has a few menu items. First, Nginx Plus, an actual paid-software product that goes beyond the free version and offers customers deeper tools for managing their web apps.

"Nginx Plus can do a lot more than just web serving," Robertson says.

Second, it has a consulting business, where its team of experts go in and help customers install and manage their Nginx-based architectures. That's especially important as companies move toward microservices, which can be a bold new world for companies used to building software the traditional way.

That business is growing quickly, Robertson says, with 300% more revenue in 2015 compared to 2014, though Nginx doesn't disclose specific financials and he declined to comment on whether it's profitable.

Reuters/NASA/JPLNASA used Nginx to handle the traffic from streaming the Mars Curiosity rover's footage back to Earth.

He does say that Nginx wasn't actively seeking funding, and had enough funding to go on for a long while. Telstra came to Nginx with a game plan for international expansion, and Nginx decided that now was the time to seek funding after all.

Existing Nginx investors New Enterprise Associates, e.ventures, Runa Capital, and Index Ventures put cash in this round as well. Including this round, Nginx has raised $41 million in funding since its founding in 2011.

Still, Nginx is keeping things fairly lean. Even with all of those users, its headcount only broke 100 recently, Robertson says, and the company tries to avoid "bloat" by adding only those features that users really need.

"We're not trying to patch too much in the product," Robertson says. "We're very discreet about the features we add."

A big part of managing that involves Nginx's community. Because the core Nginx software is open-source, any developer anywhere can download it, tweak it, and upload their fixes and improvements back to the main source code. That, in turn, means Nginx Plus continually gets better without the company having to spend as much time or money improving the core of the product.

"The open-source model and community is a lift unto itself," Robertson says.

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More: Nginx Enterprise Startups Telstra Venture Capital