How Carnival can clean up PR mess






STORY HIGHLIGHTS


  • David Bartlett: For Carnival, impact of 'cruise from hell' potentially devastating.

  • Passenger video, media puts Carnival increasingly on the defensive, he says

  • He says it must show real concern, lay out plan, go a long way to make amends

  • Don't try to justify or explain, he says, but get proactive now about fixing problem




Editor's note: David Bartlett is a senior vice president of Levick, a crisis and issues management and strategic communications firm based in Washington. He is the author of "Making Your Point" (St. Martin's Press), a guide to communication strategy and tactics.


(CNN) -- As three tugboats towed the disabled Carnival cruise ship Triumph back to port in Mobile, Alabama, things went from bad to worse.


The fire that caused the ship to lose power and drift aimlessly on rough Gulf of Mexico swells was just the beginning. Raw sewage seeped into corridors and cabin ways. Food had to be rationed. There were fears of looting. Not surprisingly, passengers were furious and emotional. Some were reported to be "acting like savages."


For Carnival and the rest of the cruise line industry, the implications are potentially devastating. The deadly capsizing in January 2012 of the Costa Concordia ship off the coast of Italy still lingers in the public's mind. About a month later, the Costa Allegra liner suffered a similar engine fire, lost power, and was set adrift in pirate-infested waters in the Indian Ocean. Carnival owns Costa Cruises, and now a third high-profile crisis for Carnival in just over a year threatens to cement the perception among vacationers that cruising might not be worth the risk.


Five things we've learned about cruises



David Bartlett

David Bartlett




In the age of social and digital media, the problems faced by cruise lines are compounded. Using mobile phones, passengers aboard the Triumph have been providing concerned family members with constant updates. Those enraged family members have immediately passed the horror stories along to the eager media. The public is getting the full play-by-play in virtual real time, leaving Carnival playing catchup from an increasingly defensive posture.


But as bad as the potential damage to Carnival's image may be, the company, as well as the rest of the cruise line industry, has an opportunity to blunt the impact, if it acts quickly and wisely.


It seems counterintuitive, but while the gruesome stories of the "cruise from hell" are still fresh, the crisis offers an opportunity for the cruise line to make a compelling statement about the industry's commitment to its passengers. (Statements from Carnival.)


Crisis management experts know that customers and the general public are more likely to judge an organization by how it handles a problem than how it got into the problem in the first place. That means Carnival has to go much further than mere reimbursements and vouchers for onward travel.


The challenge to Carnival's reputation is three-fold.


First the company must articulate real concern for passengers and clearly communicate what it is doing to make things right for customers. This will require financial sacrifices, of course. But Carnival has little choice but to pay now and win some badly needed goodwill -- or pay later in the courtroom, in the court of public opinion, and, of course, at the cash register when bookings decline.


Second, the company must clearly communicate what it is doing to fix the problem and prevent anything like it from ever happening again. How did an engine fire, serious as that might be, so quickly develop into a disaster of this magnitude?


My celebration trip on the Carnival Triumph: From joy to misery


How could it have been allowed to happen? Why was the widely reported chaos and disorder allowed to develop? Why did Carnival not have emergency response plans in place? What is the industry doing to prepare for what would seem to be a manageable situation? The public will demand answers to these basic questions before it will begin to trust again. Uncertainty breathes life into a crisis. Accurate and timely information smothers it.




Third, Carnival must aggressively and clearly deliver these messages now, and for as long as it takes to restore the public's trust.


So far, the story has been about the unthinkable conditions the passengers have been forced to endure. Carnival must move aggressively to reshape that narrative to reflect all that it is doing to rectify the situation.


After a bad cruise, can you cruise into court?


Carnival has to resist the temptation to explain, minimize, or justify what happened and position itself instead as part of the solution to the problems that caused the disaster. That is what the public will focus on and remember, but only if Carnival is able to communicate it fast and effectively.


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The opinions in this commentary are solely those of David Bartlett.






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Work starts on Seaside Heights, NJ, boardwalk






SEASIDE HEIGHTS, N.J. (AP) — The sounds shaking the ground in Seaside Heights aren’t from nightclubs.


The town featured in the MTV reality showJersey Shore” has started rebuilding the boardwalk that was destroyed by Superstorm Sandy.






Heavy equipment began drilling holes in the sand and pounding pilings into the ground Friday. It’s the first phase of a project that could ultimately cost $ 6 million to $ 7 million.


Mayor Bill Akers says the mile-long walkway should be done by May 10, but amenities like railings, lighting and ramps will come after that.


Many residents turned out to see the start of the work. They expressed hope that the place where they vacationed as children and came to settle down will recapture what made it so special to them.


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Wall Street edges up on data, S&P up for seventh week

NEW YORK (Reuters) - Stocks rose slightly Friday with the S&P 500 gaining for a seventh week in the wake of upbeat consumer sentiment data, though thin trading and the modest rise showed a continuing trend of a consolidating market after strong recent gains.


The S&P 500, up nearly 7 percent so far this year, is facing strong technical resistance near the 1,525 level. But investors, expecting the index to advance further in the quarter, have held back from locking in profits.


The Thomson Reuters/University of Michigan's preliminary reading on the overall index of consumer sentiment rose to 76.3 in February from 73.8 in January, topping economists' forecasts of 74.8.


"This is unexpected given the increase in gas prices and payroll taxes," said Jim Awad, managing director at Zephyr Management in New York. "This is a welcome event and it should be embraced by the market."


The Dow Jones industrial average <.dji> rose 14.51 points or 0.1 percent, to 13,987.9, the S&P 500 <.spx> gained 1.44 points or 0.09 percent, to 1,522.82 and the Nasdaq Composite <.ixic> added 4.68 points or 0.15 percent, to 3,203.34.


The S&P is on track to register its seventh straight week of gains by the close of trading Friday, a feat not seen since a run of consecutive weekly gains between December 2010 and January 2011.


A surge in merger and acquisition activity, with more than $158 billion in deals announced so far in 2013, has given further support to the equity market as it points to healthy valuations and bets on the economic outlook.


Art Hogan, managing director of Lazard Capital Markets in New York, said the flurry of mergers and acquisitions should be seen as a tailwind for the market.


"You don't go into M&A if you don't have a positive outlook," he said.


Herbalife shares surged 10 percent to $42.12 a day after billionaire investor Carl Icahn said in a regulatory filing that he now owns 13 percent of Herbalife and was ready to put it in play.


Burger King Worldwide shares jumped 3.8 percent to $17.21 after it beat estimates with a 94 percent rise in fourth-quarter profit, thanks to new menu additions.


(Additional reporting by Ryan Vlastelica; Editing by Bernadette Baum)



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Wall Street opens flat with data on tap






NEW YORK (Reuters) – Wall Street opened flat on Friday, continuing a trend this week of thin trading and tight moves, with the S&P 500 struggling to extend a streak of weekly gains to seven.


The Dow Jones industrial average <.dji> shed 0.62 points, or 0.00 percent, to 13,972.77. The Standard & Poor’s 500 Index <.spx> gained 1.24 points, or 0.08 percent, to 1,522.62. The Nasdaq Composite Index <.ixic> added 5.10 points, or 0.16 percent, to 3,203.76.</.ixic></.spx></.dji>






(Reporting by Chuck Mikolajczak; Editing by Bernadette Baum)


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Living In | Van Cortlandt Village, the Bronx: Van Cortlandt Village, the Bronx – Affordable Homes, and Price of Place








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Ligety wins GS for 3rd gold medal at worlds


SCHLADMING, Austria (AP) — Ted Ligety became the first man in 45 years to win three gold medals at a skiing world championships by blowing away the field in winning his favored giant slalom on Friday.


The American can match French great Jean-Claude Killy, who earned four golds in 1968, if he wins Sunday's slalom.


"I am super pumped. This is such a cool feeling," Ligety said. "I am glad I've done it ... it's been a dream for sure. It's been a really cool experience."


Defending champion Ligety, who also took the super-G and super-combined titles, built on his big first-run lead of 1.31 seconds with a fast start but cautious finish in the second.


Marcel Hirscher of Austria was 0.81 behind in second, and Manfred Moelgg of Italy took third, trailing Ligety by 1.75.


"This has been a crazy and unbelievable week. It's definitely far exceeded my expectations," Ligety said. "To win three gold medals here is awesome. It's a really cool feeling to join some of the legends of our sports."


Ligety is the first American to win two world GS titles, and has equaled Bode Miller's American record of four golds at the worlds.


"It's been pretty surreal," Ligety said. "I knew I had good chances of medals in those other two events but I didn't think the chances were gold-medal chances. So to achieve that this week it's been unbelievable. It's been by far the best week of ski racing in my life. So hopefully I can continue that streak and step up in those other events on a more regular basis.


"I definitely had a lot of pressure in the GS being the defending champion. With these gold medals it added a little bit of extra pressure for sure, so to live up to that is awesome."


Ligety, who smiled and closed his eyes several times while listening to the American anthem during the flower ceremony in the finish area, was widely praised by rivals and coaches.


"Ted is the man. He's the best in the world," Aksel Lund Svindal said. The Norwegian was second after the opening run but had only the 13th fastest time in the final run and was edged for third place by Moelgg by 0.04.


"It's not possible to beat Ted, I think," added Svindal, who won gold in downhill and bronze in super-G. "With two golds already in his pocket I bet he was fairly confident in the start."


Stephen Eberharter, the Austrian who won the 2002 Olympic GS, called Ligety's GS skiing "sensational."


"He completes these turns to perfection," Eberharter said. "He is unbelievably steady. And if he gets in trouble, he knows how to correct them immediately."


According to Alpine sport director Hans Pum of the Austrian ski federation, Ligety was "flying, not skiing. He goes from one victory to another."


"He's in very good form, he has a very good setup with the materials and he skis well," Pum said. "He got his first super-G win in the first race and then he just carried on. He's doing (whatever) he wants to."


After sunshine in the morning, grey clouds moved in and worsened visibility for the final run. In front of 35,000 visitors, Ligety increased his 1.31-second advantage over Hirscher from the first run to 1.68 before slowing down to avoid further risks.


"I wasn't easy. I took some risks but it was very difficult," Ligety said. "It was pretty dark and bumpy. I had several mistakes but I could afford them being 1.3 ahead."


Hirscher, the defending overall World Cup champion, posted the fastest time in the final run to win his second medal of the worlds after taking gold in the team event.


Hirscher hurt his lower back while GS training in nearby Haus on Thursday and had more treatment after his first run. The Austrian said he even considered skipping the race when he woke up at two in the morning.


"I wasn't sure if would make sense to race but I mobilized all energy in my body," Hirscher said. "Normally you would stay in bed. I had only had four or five hours of sleep. My neck also hurts ... it was difficult with the expectations. It was difficult to race and I am extremely happy with silver."


Hirscher was regarded as Ligety's closest challenger after beating the American in Val d'Isere, France, in December, Ligety's only loss in five World Cup giant slaloms this season. Most of the wins were by huge time differences.


"I've just had a good feeling on this hill and snow and I have high confidence," Ligety said, "so I think that helps me right now."


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Where's Obama's foreign policy?








By Isobel Coleman, Special to CNN


February 13, 2013 -- Updated 1653 GMT (0053 HKT)









STORY HIGHLIGHTS


  • Isobel Coleman: Obama mainly addressed domestic issues: economy, immigration, energy

  • He spoke very little about and offered nothing much new on foreign policy, she says

  • Coleman: He talked about ending Afghanistan War, spoke briefly about Iran, Syria, China

  • Coleman: His reinvigorated free trade agenda seems to be the boldest move




Editor's note: Isobel Coleman is the author of "Paradise Beneath Her Feet" and a senior fellow for U.S. foreign policy at the Council on Foreign Relations in New York.


(CNN) -- President Obama's State of the Union address predictably focused on his domestic priorities.


Immigration reform, a laundry list of economic initiatives including infrastructure improvements (Fix it First), clean energy, some manufacturing innovation, a bit of educational reform and the rhetorical high point of his speech -- gun control.



Isobel Coleman

Isobel Coleman



As in years past, foreign policy made up only about 15% of the speech, but even within that usual limited attention, Tuesday night's address pointed to few new directions.



On Afghanistan -- America's longest war -- Obama expressed just a continued commitment to bringing the troops home, ending "our war" while theirs continues. On Iran, there was a single sentence reiterating the need for a diplomatic solution, which makes me think that a big diplomatic push is not likely. On North Korea, boilerplate promises to isolate the country further after its provocative nuclear test, and on Syria, a call to "keep the pressure" on the regime, which means more watching from the sidelines as the horror unfolds.


Notably, China was mentioned only twice -- once in the context of jobs, and another time with respect to clean energy. Nothing about managing what could very well be this administration's most vexing but critically important bilateral relationship.


Obama's call for a reinvigorated free trade agenda was his boldest foreign policy statement of the evening. He is right to note that free trade "supports millions of good-paying American jobs," but his pledge to pursue a "comprehensive Transatlantic Trade and Investment Partnership" -- a free trade agreement with Europe -- will run into significant opposition from organized labor, especially given ongoing weaknesses in the economy.






Without fast track negotiating authority, the prospects for such a deal are minimal. Fast track authority, which allows the president to negotiate trade deals that Congress can then only approve or disapprove but not amend, expired in 2007, and it would require quite a breakthrough for Congress to approve it again. Still, despite these challenges, an agreement is worth pursuing.


Aside from a free trade agreement with Europe, there was little else in this State of the Union that hinted at foreign policy ambition. But unpredictable events have a way of derailing America's best laid plans to stay above the fray of the world's messiest problems. Who could have predicted just a few months ago that Mali would get a mention in the State of the Union? Iraq -- not uttered once tonight -- could re-emerge as a formidable crisis; Iran, Pakistan and North Korea also have tremendous potential to erupt.


While this administration seems determined to focus inward on getting America's economic and fiscal house in order, I doubt events in the rest of the world will be so accommodating.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Isobel Coleman











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Bosnian Roma family plays itself in stark film






BERLIN (Reuters) – When Bosnian director Danis Tanovic learned about a Roma family refused emergency medical care because they could not pay for it, he not only decided to turn their story into a film but managed to convince the couple to play themselves.


The result is “An Episode in the Life of an Iron Picker”, a simple, powerful tale of one man’s struggle to provide for his partner and two daughters and of a society where money is apparently more important than human life.






The fact that Nazif Mujic and his partner Senada Alimanovic are Roma adds an extra dimension of injustice and alienation, but Tanovic’s tale is more universal.


“This story happens all around Europe to Roma people,” the award-winning director told Reuters in Berlin, where his movie is in competition at the film festival.


“In my country it happens to other people too. It is probably the poorest country in Europe. So this is an unfortunate reality of many, many people who live there … It really made me angry so I just went there and did this film.”


Tanovic first read about the case of the couple and their two children in a local newspaper in 2011.


He went to visit them in their run-down home in the village of Poljice, and after several days they finally agreed to appear as themselves in a kind of docu-drama.


Mujic had no regular job, but helped strip down cars to make a few Bosnian marks from a scrap dealer. Alimanovic was pregnant with their third child when she fell ill and miscarried.


The family was told she must have emergency surgery, but when doctors discovered they had no insurance they were sent away despite Mujic’s desperate and humiliating pleas.


Told it would cost 980 marks (around 500 euros) to pay for an operation, Mujic knew he could never raise the money, and so went back to the hospital and to charities, begging for help.


“BETTER IN THE WAR”


In the end the only way to succeed was to break the law.


“I really tried and struggled to get some help for Senada from all the different state institutions, but none of them would help, so it is tough,” Mujic said in Berlin, speaking through a translator.


“My biggest ambition is to have a job and be able to support the family, but unfortunately I don’t have any illusions or hopes that I will be able to get work anyway.”


Tanovic, best known for his 2001 Academy Award-winning debut feature “No Man’s Land”, said Bosnians too often turned their backs on the poor, despite many cases he knew where people risked lives to help a stranger during the 1992-95 war.


“I wish I lived in a country that took better care of their people but it is not the case,” he said.


“So when you open Bosnian newspapers … every day you see people asking for help, people begging for money to help operate somebody or something. It is terrible.”


At one point in the unscripted film, which cost just 30,000 euros ($ 40,000) to make, Mujic tells a charity worker that life was better during the war, and Tanovic said that to some extent he agreed.


“A lot of people actually lived better in the war, because in war you don’t see rich people driving cars around, you don’t see politicians having fun … All you see is people trying to survive and you are surviving too, so you are happy when you have one meal.”


(Reporting by Mike Collett-White, editing by Paul Casciato)


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Wall Street erases earlier losses; M&A news, data support

NEW YORK (Reuters) - Stocks erased earlier losses to trade flat by late morning on Thursday as a flurry of M&A deals and better-than-expected jobs data fed optimism to the market, although signs of economic weakness in Europe and Japan curbed appetite for risky assets.


Among the M&A announcements, shares of H.J. Heinz Co jumped 20 percent to $72.50 after it said Warren Buffett's Berkshire Hathaway and 3G Capital will buy the company for $72.50 a share, or $28 billion including debt.


Also supporting the market, U.S. data showed the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. But data out of Europe showed a contraction of 0.6 percent in gross domestic product in the euro zone, the steepest for the bloc since the first quarter of 2009. Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.


"The only reason a company buys another company is because they see an upside. Even though we are at multiyear highs, this kind of activity shows that there is more room for a rally, feeding optimism to the market," said Randy Frederick, director of trading and derivatives at Charles Schwab.


"The jobless claims numbers were solid, and with the European market closing, the news out of Europe is pretty much done for the day."


But Frederick added the market would have to see small corrections before breaking above current levels, where indexes have been hovering for almost two weeks. The S&P 500 is up more than 6 percent so far this year, near its highest level since November 2007.


The Dow Jones industrial average <.dji> was down 1.20 points, or 0.01 percent, at 13,981.71. The Standard & Poor's 500 Index <.spx> was up 0.03 points, or 0.00 percent, at 1,520.36. The Nasdaq Composite Index <.ixic> was down 2.65 points, or 0.08 percent, at 3,194.23.


Constellation Brands soared more than 35 percent to $43.26 after terms of its takeover of Mexican brewer Grupo Modelo were revised, granting it perpetual rights to distribute Corona and other Modelo brands in the United States. AB InBev ADRs gained 5.5 percent to $93.08.


American Airlines and US Airways Group said they plan to merge in a deal that will form the world's biggest air carrier, with an equity valuation of about $11 billion. US Airways shares fell 2.4 percent to $14.31.


Shrinking European economies translated to a 5-percent drop in revenue from the region for Cisco Systems , which nonetheless beat estimates as it reported its results late Wednesday. The company's shares slid 1.4 percent to $20.84.


General Motors Co reported a weaker-than-expected fourth-quarter profit, also citing bigger losses in Europe alongside lower prices in its core North American market. The stock was off 0.8 percent at $28.42.


(Reporting By Angela Moon; Editing by Nick Zieminski)



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Kenyan economy likely to grow up to 6 pct in 2013: IMF






NAIROBI (Reuters) – The International Monetary Fund expects the Kenyan economy to grow at least 5.5 to 6 pct this year from an estimated 4.5 to 5 percent in 2012, assuming elections in March go smoothly, a senior fund official said.


Kenya has stayed the course of its economic reforms and this has worked quite well,” Domenico Fanizza, who has been leading a mission to Kenya under the IMF’s Extended Credit Facility, told a news conference on Thursday.






Kenya has forecast 5 percent plus growth this year.


Fanizza said the presidential election set for March 4 was a risk but said the new constitution could help the country to go through the election peacefully.


“It (2013 growth forecast) is predicated on a smooth election. Given the relative strength of the economy before election, if voting goes without major incidents, I expect investments to pick up,” he said.


The east African country could vote in a president accused of crimes against humanity, posing a diplomatic headache for Western capitals and raising the spectre of sanctions. Fanizza said although it was unclear what foreign governments would do in such a case, the economy could still do well.


If presidential hopeful Uhuru Kenyatta wins the poll, Kenya will become the second country after Sudan to have a sitting president facing trial at the International Criminal Court in The Hague.


“Kenya has continued to grow despite the global economic and financial crises like in the Euro Zone,” Fanizza said, adding the growth was driven by domestic factors.


The outcome of the last election in 2007 was disputed and the vote was followed by tribal violence which killed more than 1,200 people and displaced about 350,000 from their homes.


The post-election violence convulsed the economy and sent the shilling spiralling lower against the dollar.


Fanizza cited domestic consumption due to growth of the middle class, as well as robust ICT and financial sectors.


He said the government had maintained fiscal discipline while the policy stance had remained cautious.


“Inflationary pressures have been tamed and interest rates have been declining supporting economic activities,” he said.


The mission welcomed the Central Bank of Kenya‘s (CBK) continued vigilance in easing its policy stance by closely monitoring inflation.


CENTRAL BANK VIGILANCE


Kenya’s year-on-year inflation rate rose for the first time in thirteen months in January and analysts said it could rise further in the coming months on currency weakness and election-related spending. Inflation rose to 3.67 percent in January from 3.20 percent in December.


The rate of inflation in January was still well within the government’s medium-term target of 5 percent, plus or minus two percentage points.


The central bank began cutting the country’s high interest rates last July after inflation tumbled from a November 2011 peak of just under 20 percent. The policy lending rate now stands at 9.5 percent.


The IMF recommended that the CBK should continue to build up its hard currency reserves to create a buffer.


The central bank has been using up Kenya’s hard currency reserves in the run-up to the poll to support the under-pressure shilling.


“Fiscal policy should remain geared towards lowering the public debt-to-GDP ratio further,” Fanizza said.


At end 2012 it was slightly below 44 percent, he said in reference to the debt-to-GDP ratio. He said that can be achieved through expenditure control and improvement of tax collections.


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