Keystone fallout

The chase by Marty Cej:

The Obama administration's kick-the-can decision to reject the Keystone XL pipeline, at least for now, leaves a confusing muddle that exemplifies the continuing fecklessness of U.S. energy policy."
- Editorial in USA Today

The rejection of Keystone and the development of renewable energy "is the winning case that Mr. Obama should make to voters in rejecting the Republicans' craven indulgence of Big Oil."
- Editorial in The New York Times

"The Anti-jobs President"
- Editorial headline from The Wall Street Journal

In the Keystone XL pipeline story, the word "rejection" is strong and not exactly accurate, but that is the word that the most vociferous and entrenched proponents and opponents to the pipeline have chosen to clasp tight to their bosoms. The Obama administration yesterday denied a permit to move ahead with the proposed pipeline in its current form and extended an invitation to TransCanada Pipeline to reapply for a permit, say, once the election is over. Sure, the decision is purely political and again smacks of the worst of Washington gamesmanship and posturing when the world's biggest economy needs real leadership, but the project has hardly been derailed, rather it's been shunted to a spur. TransCanada's timetable remains almost exactly the same and approval for Keystone XL with a modified route still remains the most likely scenario. Republicans thought they would help Obama paint himself into a corner by forcing a hasty decision on the project into the payroll tax bill: if he said "yes," he would risk millions of pro-environmental votes; if he said "no," he would lose important union votes and provide fodder for accusations that he is the "anti-jobs president." But he didn't say "no," he said "not yet" and that's how we'll continue to pursue the story. If not yet, then when?

We need to know more about the alternate proposals, the various routes. We need to know the math behind the jobs claims. Is the estimate of 20,000 jobs accurate or is it 10,000 jobs spread over two years? Does the Keystone permit denial really add urgency to the Gateway project? Will the schoolboy-like reaction by the Canadian government (Fine! Whatever! I didn't really want to dance with you anyway. Sniff sniff) lead to a true policy and effort shift in developing new markets for Canadian energy? What does the delay mean for the Canadian oil patch? For jobs? For the political relationship between Alberta and the U.S.? There remains much to be done on this story.

Eastman Kodak, the 130-year-old company that invented the hand-held camera, filed for bankruptcy protection, finally. Kodak has obtained a $950 million 18-month credit facility to keep it going as it restructures and seeks buyers for some of its 1,100 digital patents. The future of its 17,000 employees is uncertain. As one of the world's best-known brands, oldest going concerns and a tale of failed corporate strategy, this story has few peers. It requires a careful, considered and context-rich telling. Those Ansel Adams shots of Yosemite? Kodak. Snapshots on the moon? Kodak. Marty's 16th birthday? Kodak. If it mattered enough to be shot on film, it was shot on Kodak.

European stocks are climbing, U.S. stock index futures are advancing and commodity prices are higher after France and Spain both saw robust demand for bond sales today, even in the wake of S&P's downgrades. Lower borrowing costs for the European countries that need them most is good news for investors and central bankers who continue to see the European debt crisis as the biggest threat to the global economy.
It's a big day for earnings with financials taking the lead during the trading day and tech taking over after the close. This morning we're looking at numbers from Morgan Stanley (beat), Bank of America (beat), Freeport-McMoran (beat), American Express, BB&T, SouthWest Airlines and Capital One. After the close, watch Intel and Microsoft and that search thingy, Google.