What's Important In The Financial World (2/17/2012) Phone Launches, BP Settlement

The smartphone wars have heated up as the industry’s leaders gather in Barcelona for the Mobile World Congress. Most of the companies that currently run behind Apple (NASDAQ: AAPL) in smartphone market share and profitability have shown new models. Nokia (NYSE: NOK), still in trouble and losing revenue, revealed its new Windows-powered Lumia 610. It is inexpensive compared to Nokia’s current flagship line, which means it is less expensive than the iPhone. But the Windows mobile operating system has not done well in the market. Why should that change? Sony (NYSE: SNE) launched its new model, which takes advantage of the multimedia library Sony has built through its entertainment business. This cannot match the selection of Apple’s iTunes. That makes the Sony program a long shot. HTC, once a darling of the sector, admitted it needs new models. Apple’s only viable competitor, Samsung, announced a new high-end phone. The product is one of an arsenal that will keep Samsung close to Apple in market share. But, for all the introductions, no experts have seen an iPhone-killer.

G20 Presses Germany

Germany continues to hold out as G20 nations ask it to contribute to a larger EU bailout facility. The U.S., China and Japan want to see a greater financial commitment from European countries before they invest more money in the International Monetary Fund that would go to help the eurozone sovereign debt problem. German public opinion is against a greater investment. And the Merkel government thinks the current bailout fund is big enough as long as its weak neighbors embrace more austerity measures. Taken together, these factors mean that Germany is an unlikely source of new bailout capital.

BP’s Settlement Offer

The progress of the case against BP (NYSE: BP) by plaintiffs who claim that they were damaged by the oil leak from the Deepwater Horizon has slowed. BP may offer to agree to a settlement of $14 billion to pay off all claims, as long as it is protected from future litigation. The money would come from its Gulf Coast Claims Facility, which was originally capitalized with $20 billion. Even if a settlement is reached, BP will have to face the federal government in court on charges that it did too little to prevent the catastrophe and should pay billions of dollars in fines.

A Warren Buffett Successor

Warren Buffett said the board of Berkshire Hathaway (NYSE: BRK-A) has picked a successor who will take over as CEO when he is gone. The announcement hardly matters. Buffett said he does not plan to leave. He also refused to disclose the name of the CEO-in-waiting.

Douglas A. McIntyre