BRA pushing forward on Downtown vendors

Boston Redevelopment Authority officials will meet with Downtown Crossing pushcart operator Craig Caplan on Tuesday to discuss the future of the outdoor program after Mayor Thomas M. Menino intervened to prevent the vendors' ouster at the end of this month.

"This meeting is part of the ongoing conversation that is happening to determine the next phase of the Downtown Crossing pushcart program," BRA spokeswoman Melina Schuler said. "Talking and listening to the needs of pushcart operators is a crucial part of moving the pushcart program in Downtown Crossing forward."

Last week, Menino gave 26 pushcart operators in the Downtown Boston Business Improvement District a 60-day reprieve after the BID informed them they would be required to shut down at the end of this month. Vendors' permits now have been extended at least through the end of May.

The vendors, who have been hawking food and merchandise since the late 1970s, cried foul after receiving notice that the BID planned to implement a temporary, scaled-down pushcart program this spring for which they'd have to reapply — without guarantees of being accepted. The vendors argue that they've remained in business during Downtown Crossing's hard times and should be included in its revitalization.

The BID's long-term plan, which the BRA supported, was to upgrade and professionalize the vending program for 2014, with new merchandise and more permanent kiosks.

"We have communicated to all the vendors that their Public Works permits have been extended for another 60 days," BID president Rosemarie Sansone said by email. "The BID is continuing to work closely with the BRA and other city agencies in developing a plan for the coming year. In speaking to many of the vendors, we have let them know we are addressing this issue as thoughtfully and quickly as possible."

Caplan, who has forwarded a letter to Menino along with 1,000-plus names on a petition that supports the vendors, did not respond to Herald inquiries.

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It’s hip to be square in Cambridge

This architect-designed home may be the most unique in Cambridge, as much a work of art as a place to live.

The single-family detached house at 19 Clifton St. sits on commonly held land behind an 1886-built home and is technically part of a two-unit condo association. Designed in 2006 by local architects Beat Schenk and Chaewon Kim, the dwelling consists of three stacked boxes set at angles, with an exterior of stained Okoume plywood, the kind normally used on yachts.

The home looks unusual from the outside, but the interior consists of well-thought-out rooms and a masterful use of space. The two-bedroom, free-standing townhouse is on the market for $579,000.

From the front of the house you don't see any windows, but there are windows on the far side and in back, and many of the rooms get decent light from skylights cut into the exposed roof corners.

The first floor of the house has a skylit living/dining area with a white Carrara marble floor. A plywood staircase set at an angle divides this room from a kitchen area with four skylights that features a bottom row of stainless steel cabinets topped by brown granite counters.

Up above is a row of frosted glass lift-up cabinets. Stainless-steel appliances include a new Bosch dishwasher, a General Electric refrigerator and an Amana gas stove with a stainless-steel hood that vents to the outside. There's an additional wall for more kitchen storage and gadgets.

A glass door leads out to a crushed stone back yard with trees that provides parking for two vehicles.

The home's second floor has a guest bedroom, set off with sliding plywood doors, with polished plywood floors and knotty pine walls with two skylights and a window. Adjacent is a full bathroom with a white ceramic sink and a tub/shower with Carrara marble walls. Also on this floor is a small home office area with a window and a built-in bookcase.

The third floor is a sunny master bedroom suite with a large oak-floor bedroom, two windows, a wide skylight and recessed lighting. In one corner of the room is a two-door custom wardrobe with built-in drawers and hanging rods.

An angled frosted-glass window shields the bedroom from a large en-suite master bathroom. This space features Carrara marble floors and walls and an open shower area. There's also an area for a stacked Kenmore washer/dryer.

The 150-square-foot finished basement, with a window, is outfitted as a family room. The home has a heat-pump-based multi-zoned central heating and air-conditioning system.

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Agriculture disputes threaten new US-EU talks

WASHINGTON — President Barack Obama used Washington's grandest stage — the State of the Union speech — to announce negotiations with Europe aimed at creating the world's largest free trade agreement. Just weeks later, there are signs that old agriculture disputes could be deal-killers.

European Union leaders don't want the negotiations to include discussions on their restrictions on genetically modified crops and other regulations that keep U.S. farm products out of Europe. But Obama says it's hard to imagine an agreement that doesn't address those issues. Powerful U.S. agricultural lobbies will do their best to make sure Congress rejects any pact that fails to address the restrictions.

"Any free trade agreement that doesn't cover agriculture is in trouble," said Cathleen Enright, executive vice president at the Biotechnology Industry Organization, which promotes biotechnology, including genetically modified products.

That would threaten the dream of a behemoth free trade deal between the world's two largest trading partners that together account for more than half of the world economy. It would lower tariffs and remove other trade barriers for most industries. Some analysts say the deal could boost each economy by more than a half-percentage point annually and significantly lower the cost of goods and services for consumers.

Agricultural issues have long bedeviled attempts to expand free trade across the Atlantic and have led each side to file complaints against the other before the World Trade Organization, an arbitrator in trade disputes. While the U.S. protests EU restrictions, Europeans want the U.S. to reduce agricultural subsidies.

Genetically modified organisms, or GMOs, have been a core part of the dispute. Agricultural scientists change the genetic makeup of agricultural products to improve their quality and boost production. In Europe, there is widespread public opposition to GMOs. The EU argues that the risks of altering the genetic pool are unknown. It has strict rules and imposes a heavy burden of proof before such crops can be grown or imported in the EU.

U.S. companies say that genetically modified products have been proved safe by scientific studies and are being excluded based on irrational fears. They accuse Europe of trying to help their own farmers by keeping out American products.

While they have little expectation that the EU would end the restrictions, they say it would be a victory if it clarified what it describes as opaque rules and also set timelines for considering products. Regulators now take what they call a precautionary approach, declining approval of products until they can be more certain of their safety.

But any move to water down the regulations could provoke a backlash in Europe.

"My reading of the mood in Europe around genetically modified crops is that it's extremely negative," said Paul DeGrauwe, a professor of economics at the London School of Economics. "It's going to be very difficult."

Indeed, the top EU trade negotiator, Commissioner Karel De Gucht, seemed to rule out a compromise in remarks this month: "A future deal will not change the existing legislation. Let me repeat: no change."

The U.S. and the EU have similarly intractable disagreements on what the two sides call sanitary issues in meats. U.S. poultry products are restricted in the EU because U.S. companies use chlorine to sanitize the meat. Pork is also restricted because U.S. farmers use a feed additive that makes pigs leaner. The two sides partially resolved disputes over U.S. beef after an agreement that U.S. farmers would restrict hormones in cows intended for the European market.

Some European officials say the agricultural differences should be discussed after a major trade deal is completed. This month, French President Francois Hollande called for excluding sensitive issues, including the sanitary standards, from the talks. In the past, France has been among the most adamant of the European countries about protecting agricultural interests.

Obama, in a talk with his export council this month, suggested this could be a deal-breaker.

"There are certain countries whose agricultural sector is very strong, who tended to block at critical junctures the kinds of broad-based trade agreements that would make it a good deal for us," he said. "If one of the areas where we've got the greatest comparative advantage is cordoned off from an overall trade deal, it's very hard to get something going."

Powerful U.S. agricultural groups could probably block a trade deal from winning approval in Congress. In interviews, representatives of many of these groups said they would oppose a deal that didn't address the regulatory differences.

Robert Thompson, an academic at Johns Hopkins University and a former economist for the Agriculture Department, said that the agricultural issues could easily upend the talks.

"I'm not expecting an agreement to emerge any time soon," he said. "I'm thinking years."

Of course, the rhetoric at the beginning of talks might not preclude compromise in the end. In his talk with the export council, Obama expressed optimism. He noted that austerity measures in response to the debt crisis in the EU have caused European countries to look to a free trade deal as a rare opportunity to boost the economy and improve competitiveness.

"I think they are hungrier for a deal than they have been in the past," he said.

___

Melvin reported from Brussels.

___

Follow Desmond Butler on Twitter at http://twitter.com/desmondbutler

Follow Don Melvin on Twitter at http://twitter.com/Don_Melvin

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Troubled Calif. nuke plant seeks restart in summer

LOS ANGELES — As part of an effort to convince federal regulators that a nuclear reactor is safe to restart, the operator of the shuttered San Onofre nuclear power plant in California has disclosed it might push for a rewrite of the facility's operating rules.

Southern California Edison disclosed Friday it hopes the move could open the way for the Unit 2 reactor to be back in service by summer, when power demand typically soars in the region.

San Onofre has been shut down since January 2012, after a small radiation leak led to the discovery of unusual damage to hundreds of tubes that carry radioactive water.

Edison has been trying since October to convince the Nuclear Regulatory Commission that it's safe to run Unit 2 at no more than 70 percent power. Company engineers believe the reduced level will limit vibration and friction that can cause excessive wear to tubing.

The tentative proposal amounts to Edison's third attempt to answer a thorny question raised by the NRC: Is the plant that hasn't produced electricity in more than a year capable of running at full power?

In earlier filings, Edison argued that its 70 percent restart target was, in effect, full power. It later submitted another analysis showing the reactor could run at 100 percent power, but the research found the risk of a tube break could reach unacceptable levels after 11 months.

The new proposal could essentially eliminate the debate over the full power threshold.

It calls for capping the plant's power output at 70 percent in the plant's technical operating rules, rather than the now-required 100 percent. It also argues that running the reactor at 70 percent capacity would pose no significant safety risk.

The proposal, known as a license amendment, came as a surprise since Edison has long argued such a revision was unnecessary to restart the plant.

If approved by federal regulators, the move could offer a potentially quicker way to a restart.

"We want to do every responsible thing we can do to get Unit 2 up and running safely before the summer heat hits our region," SCE President Ron Litzinger said in a statement.

Anti-nuclear activists who have opposed the restart accused Edison of trying to circumvent a thorough NRC review of machinery with a history of trouble.

According to Edison documents, members of the public can request a hearing on the amendment, but if NRC staff finds there is no significant hazard, the hearing can be held after the amendment is approved.

"Edison is more focused on making profits than it is in assuring the safety of millions of Southern Californians living near these reactors," Damon Moglen of the advocacy group Friends of the Earth said in a statement.

Daniel Hirsch, a lecturer on nuclear policy at the University of California, Santa Cruz, and a critic of the nuclear power industry, said Edison was trying to delay a substantive review until "long after it has already restarted."

"If it is subsequently determined it wasn't safe to do so, it would be way too late," Hirsch said in a statement.

NRC spokesman Victor Dricks said the agency had not received the proposal from Edison.

The problems at San Onofre focus on its steam generators, which were installed in a $670 million overhaul in 2009 and 2010.

Last year, federal regulators blamed heavy tube wear in the generators on a botched computer analysis that they said misjudged how water and steam would flow in the reactors, along with manufacturing problems.

The generators, which resemble massive steel fire hydrants, control heat in the reactors and operate somewhat like a car radiator. At San Onofre, each one stands 65 feet high and weighs 1.3 million pounds, with 9,727 U-shaped tubes inside that are each 0.75 inch in diameter.

Overall, NRC records show investigators found wear from friction and vibration in 15,000 places, in varying degrees, in 3,401 tubes inside the plant's four generators, two in each reactor.

The future of the heavily damaged Unit 3 reactor, where the radiation leak occurred after a tube break last year, is not clear. Edison has said that because of manufacturing differences, Unit 2's generators did not suffer the extent of deep tube wear witnessed in its sister.

Cracked and corroded generator tubing has vexed the nation's nuclear industry for years.

Decaying generator tubes helped push San Onofre's Unit 1 reactor into retirement in 1992, even though it was designed to run until 2004. The following year, the Trojan nuclear plant, near Portland, Ore., was shuttered because of microscopic cracks in steam generator tubes, cutting years off its expected lifespan.

San Onofre is owned by SCE, San Diego Gas & Electric and the city of Riverside.

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New England farmers look for creative ways to grow

DEERFIELD — Atlas Farm is growing more than just food — it is growing its business in ways that bring it more in touch with the everyday consumers it, and all New England farms, needs to survive.

Owner Gideon Porth, who has farmed 55 acres of land on the Connecticut River here since 2006, has bought 40 acres of cropland and a retail farm stand on Route 5 that he plans to open in May. The land and greenhouses on Route 5 will be vital, he said, since they are on the busiest road in his part of Franklin County, and because direct marketing is crucial not just for him, but for farmers all over New England.

"Our farm for the last five or six years has gotten more into wholesale production and sales," he said.

Wholesalers, those who buy produce and move it on to supermarkets, restaurants or to specialty retailers such as Whole Foods, have grown to about two-thirds of Porth's business, he said. Direct-to-consumer channels such as farm shares and farmers markets, as close as Northampton and as far away as Boston, are just a third of the business.

"But wholesale business is less stable," Porth said. "I feel like it is a lot less reliable in certain ways. You are competing in a global marketplace with fresh produce."

Global marketplace? In the organic vegetable business with its hippie ethos?

"Even in the organic world," Porth said. "There are big players in organics these days. If there is cheap organic lettuce coming out of California, we are subject to those pressures. And in California there are 5,000-acre lettuce farms."

He'll also bring the farm-share concept to the stand. Traditional farm shares allow people to pay upfront for a share of a farm's harvest. People get a box of vegetables every week or so.

The stand share will allow folks to pay up front for a selection of produce from the stand, Porth said.

That pressure to compete in a global marketplace with fresh, locally grown food is why more than 500 farmers and aspiring farmers from all six New England States gathered late last month in Sturbridge for the Harvest New England Agricultural Marketing Conference and Trade Show. Attendees ranged from farmers with hundreds of dairy cattle to a woman who raises vegetables on two vacant city lots in Providence, R.I.

It featured seminars and talks from people who have successfully marketed New England food both here and outside the region.

Massachusetts statistics show that there are 7,700 farms in the state. Most are small, averaging just 68 acres in size. Just 1,700 of those farms were big enough to require any hired labor. The total cash receipts from all 7,700 farms totaled $489 million in 2011.

Linda M. Paquette, of Hampden, bought a plot of land in two years ago. She calls it Scantic River Farm and hopes to grow herbs and vegetables. But so far most of her income comes from selling fresh eggs. A nurse by profession, she grew up in Springfield.

"I just always wanted to be a farmer," she said.

And there were plenty of vendors at the show willing to help out, ranging from Oesco, an orchard supply company in Conway with a selection of ladders and cider presses, to companies with seed trays. Then there was Jean McCarthy with North Woods Animal Treats of Keene, N.H., who was looking to wholesale doggy treats to farm store owners looking for impulse-buy items to stock near the cash register.

"All these people want to have retail operations," she said. "All these people might be looking for more things to sell at those retail operations. All the people who are interested in natural foods and would go to those farm retail operations might also be interested in natural pet treats. It is a natural fit."

The future of, and the possible undoing of, New England's farms is in the hands of those health-and-nature conscious customers, said Lorraine Stuart Merrill, commissioner of the New Hampshire Department of Agriculture, Markets and Food.

"There is a great opportunity today to get people to eat fresh, local foods," she said. "It is not a fad. Once a person starts, they never go back."

But all those local customers also pose a threat. They like to buy houses, houses that take up land.

"This drives our high cost of land," she said during a roundtable forum with heads of the agriculture departments from all six New England States. "It is very expensive."

Vermont Secretary of Agriculture Chuck Ross said direct marketing can also bring culture clashes. He reminded the crowd of farmers that Green Mountain College in Poultney, Vt., was faced with death threats last year after word got out on social media that the college was going to put down an aged working ox and serve the beast in the dining hall.

"This is the mentality you are dealing with," he said to the snickers of a knowing audience. "People think their food magically appears at the grocery store."

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Pay your best estimate to IRS

Tax season is upon us and the Herald's TaxSmart experts are here every Friday to help.

Today, Jonathan Gorski of Boston-based Edelstein & Co. discusses estimated tax payments to the Internal Revenue Service.

When am I required to make estimated tax payments to the IRS?

Individuals are required to make estimated tax payments to the IRS if the amount of tax they pay through withholding on wages and other payments will not adequately cover their tax liability for the year.

To avoid interest and penalties on an underpayment of tax, individuals, in the current year, are required to pay the lower of a) 90 percent of their current year tax; or b) 100 percent of the prior year tax.

If the taxpayer's adjusted gross income (AGI) for the prior year was more than $150,000 ($75,000 if the taxpayer's current year filing status is married filing separately), substitute 110 percent for 100 percent in the previous sentence.

Taxpayers typically make estimated tax payments on a quarterly basis. There are special rules for farmers and fishermen.

Planning tip: The IRS requires you to pay your taxes "as you go" throughout the year.

This is essentially the purposes of federal withholdings as they are treated as payments made evenly throughout the year.

If you become aware that your withholdings and estimated tax payments aren't enough to cover your income tax liability and/or interest and penalties from an estimated tax underpayment for the year, speak to your tax advisor about remitting additional amounts of federal income taxes through withholdings.

Taxpayers are usually able to withhold extra amounts on their W-2 wages and required minimum distributions (RMD's) from their retirement plans.

Email your tax questions to
bizsmart@bostonherald.com.

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Saudi buyer has new Ames for Hub mansion

Brokers wrapped up a blockbuster deal in Boston's Back Bay this week, finalizing the $14.5 million sale of the Ames-Webster mansion.

But it took three years and a hefty 37 percent price cut before a deep-pocketed Saudi businessman snapped up 306 Dartmouth St., one of the largest properties in the neighborhood.

The grand 26,000-square-foot property — with 50 rooms and 28 fireplaces and parking for up to six cars — hasn't been serving as a home but rather the offices of owner Raymond Property Co., a Hub real estate developer.

Originally listed in January 2010 for $23 million, then transferred to broker Campion & Co. in May 2011, the property had one price reduction to $18 million in November 2011.

306 Dartmouth was built as the home of Stephen Van Rensselaer Thayer and his wife, Alice. The wealthy Thayer was president of the Institute of 1770, Hasty Pudding Club and the Harvard Boat Club. But during construction, Thayer died at the age of 24. The home was bought by Charles Whitney, who sold it to prominent capitalist Frederick L. Ames in 1880.

Ames was born into great wealth in the 1830s. His great-grandfather founded the Ames Shovel Works and Ames invested heavily in railroads, becoming one of the principal owners of the Union Pacific Railroad.

Ames was determined to give this home his personal stamp, so he hired the architectural firm Sturgis and Brigham to extensively renovate the home and add a four-story, off-center tower — highly fashionable at the time.

The renovation also doubled the size the home's dining room, and added some of the finest museum-quality finishes including a skylight by Jean-Joseph Benjamin-Constant. The French artist's work is housed in collections across the world including New York's Metropolitan Museum and Russia's Hermitage.

Campion's listing boasted that the mansion has an "embassy-worthy main floor with handsome carved wood and elegant detail at every turn. The main entry is covered in hand-applied tesserae glass mosaic and bordered in market. The great hall, with its elaborate staircase and tower, is 60 feet long.

According to real estate records, the buyer of the property was FAL Boston LLC, an entity managed by Fahad Al-Athel, a Saudi sheikh and head of FAL Holdings, a conglomerate based in Riyadh. FAL was represented by broker First Boston Realty.

It's unclear at this point what Al-Athel intends to do with the property — keep it as an office, convert it back to a single-family residence or divide it into condominiums. The property has duel permit status both commercial and residential.

One thing is certain: The powerful Neighborhood Association of the Back Bay will be watching closely.

Jennifer Athas is a licensed real estate broker. Follow her on Twitter @JenAthas.

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Take these jobs and love it

Patrick administration officials touted yesterday's jobs report, trumpeting that the state has returned to pre-recession employment levels, but the anemic 500 jobs created last month could be one indication that Massachusetts is not out of the woods yet, economists told the Herald.

Statistics for the Bay State show 18,900 jobs were created in January, compared to the 16,100 initially estimated.

Robert Nakosteen, a professor of economics and statistics at the UMass Amherst Isenberg School of Management, questioned the enormous gap between the January and February jobs numbers, which are gleaned from a survey of employers.

"If the numbers are accurate, it's a strange pattern," Nakosteen told the Herald. "It's certainly not part of any trend I can imagine."

There are now 3,318,500 people working in Massachusetts, compared to 3,304,300 in April 2008, when the recession took hold here, according to the state Executive Office of Labor and Workforce Development.

Last month, the state unemployment rate ticked down to 6.5 percent from 6.7 percent in January. But initial estimates show that only 500 jobs were created in February, with five of 10 sectors losing jobs.

Both Nakosteen and Northeastern University economist Alan Clayton-Matthews said the Massachusetts economy has improved, but they forecast modest growth in the months ahead.

"I expect the state's economy to grow, but the growth to slow a bit because of the increase in the payroll tax and sequestration," Clayton-Matthews said, referring to the across-the-board cuts in federal spending that took effect this month.

Those cuts stand to have a greater impact here than in other states because Massachusetts receives a disproportionate amount of federal funding for research, health care and defense, Nakosteen said.

Frank Conte of the Beacon Hill Institute at Suffolk University said the state should also be worried about the loss of 2,900 manufacturing jobs since February 2012.

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Walmart ad chops Stop & Shop

Walmart takes aim at competing local grocery stores in a new price-comparison advertising campaign, but a Somerville consumer advocate warns such ads are "inherently deceptive."

The Bentonville, Ark.-based retail giant specifically targets Quincy-based Stop & Shop, showing how a shopper saved 14 percent at its Walpole store on items that she had purchased at a Stop & Shop in the same town.

Walmart launched the price-comparison campaign more than a year ago in Charlotte, N.C., and now is shooting commercials in some 50 markets across the country.

"We've had a lot of positive customer feedback, and we think that reflects how much customers appreciate learning about the price differences that exist in their communities and where they can find the most affordable prices," spokesman Bill Wertz said.

In a TV commercial shot Tuesday in Walpole, shopper "Grey" from Wrentham, who was compensated for her appearance, saved a combined 14.3 percent, or $14.75, on 24 items, ranging from Cabot Extra Sharp Cheddar Cheese (8 oz.: $2.28 at Walmart and $3.04 at Stop & Shop) to Tide Clean Breeze Laundry Detergent (100 oz., 64 loads: $11.97 at Walmart and $14.49 at Stop & Shop). Some items were duplicates, but all except four were cheaper at Walmart, whose comparison excluded non-identical items and random-weight meat and produce on Grey's original Stop & Shop receipt.

But Somerville consumer advocate Edgar Dworsky urges shoppers to "take such comparisons with a grain of salt," noting they generally don't include a big enough sample of random items to mimic the average consumer's shopping experience.

"Do your own comparison for the items you buy," said Dworsky, a former director of consumer education at the state Executive Office of Consumer Affairs and Business Regulation and former state attorney general in consumer protection. "The best shopper is the 'specials' cherry picker. The one who buys the best sales items from a variety of stores is going to save the most. You cannot save the most just going to one store."

Walmart's campaign runs through Monday and includes print, radio, TV and online elements at www.walmart.com/boston.

A Stop & Shop spokeswoman said "we continually strive to bring our customers savings every day." The chain offers weekly specials, "Real Deals" items on sale for multiple weeks and a gas rewards program. It also recently has provided clip coupons in its circulars, according to spokeswoman Suzi Robinson.

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Judge: Aggregator of AP news can't have free ride

NEW YORK — A federal judge ordered an Internet news clipping service to stop reselling stories from The Associated Press, saying the ability of news organizations to perform an "essential function of democracy" was jeopardized when a company is allowed to "free ride" on the costly work of others.

Media observers say the ruling against Meltwater U.S. Holdings Inc. and its Meltwater News Service, if upheld on appeal, could provide strong protection for the news industry as it struggles to survive in an Internet age.

U.S. District Judge Denise Cote rejected Meltwater's claims that its use of Web stories drawn from a scan of 162,000 news websites from more than 190 countries was a fair use of copyright-protected material.

"Through its use of AP content and refusal to pay a licensing fee, Meltwater has obtained an unfair commercial advantage in the marketplace and directly harmed the creator of expressive content protected by the Copyright Act," Cote said.

She said in a ruling released to lawyers in the case Wednesday and to the public on Thursday that investigating and writing about newsworthy events worldwide was expensive, and copyright laws permits the AP to earn money to pay for it.

"Permitting Meltwater to take the fruit of AP's labor for its own profit, without compensating AP, injures AP's ability to perform this essential function of democracy," Cote wrote.

In a statement, Meltwater called the ruling "at odds with a variety of prior decisions that have paved the way for today's Internet," and said it would appeal.

The judge noted that commercial Internet news clipping services like Meltwater perform an important function for their customers, but that "does not outweigh the strong public interest in the enforcement of the copyright laws or justify allowing Meltwater to free ride on the costly news gathering and coverage work performed by other organizations. Moreover, permitting Meltwater to avoid paying licensing fees gives it an unwarranted advantage over its competitors who do pay licensing fees."

Meltwater is a 12-year-old electronic news clipping service that helps its clients monitor how they are covered in the press. In its lawsuit, the AP alleged that Meltwater News had been pilfering current and past material from the AP and other news providers without paying licensing fees.

George Freeman, a media law expert in private practice at Jenner & Bloch, called the ruling "one of the most solid and comprehensive that we've had in this very important field."

Richard Stim, a San Francisco attorney and author of "Getting Permission: How to License & Clear Copyrighted Materials Online & Off," said the ruling is special because most lawsuits against news aggregators get settled out of court.

"It gets a case out there that makes it easier to push people into licensing agreements," he said. "That's its ultimate business function. That's why everybody settles. They don't want a case out there that gives (content owners) the ammunition to say, 'Last time we did it, we won in court.' "

Even on appeal, the case will provide an important precedent, he said.

"The appeal may or may not go the same way," Stim added. "For people who follow these things, there'll finally be some judicial decisions."

Dwayne Buttler, an expert on copyright law and an endowed chair at the University of Louisville, said Cote's ruling was likely not the final word on the matter, since various appellate courts are in disagreement on the subject.

He also cautioned that works that are more factual than creative are given less protection by U.S. copyright law, which does not protect facts or ideas from copying.

"Newspapers are on the borderline of protectability," Buttler said.

The judge rejected Meltwater's claims that it operates like a search engine.

"Meltwater News is an expensive subscription service that markets itself as a news clipping service, not as a publicly available tool to improve access to content across the Internet," she said. "Instead of driving subscribers to third-party websites, Meltwater News acts as a substitute for news sites operated or licensed by AP."

Cote praised the operation of legitimate search engines.

"These interests are complementary. The Internet would be far poorer if it were bereft of the reporting done by news organizations and both are enhanced by the accessibility the Internet provides to news gathered and delivered by news organizations," Cote said.

She also defended the creativity necessary to write the first paragraph of a story, known as a "lede," saying Meltwater "misses the mark" when it argues that ledes are teasers and not summaries of news.

"If anything, the observation emphasizes the creativity and therefore protected expression involved with writing a lede and the skill required to tweak a reader's interest," Cote said.

Meltwater said it believes Cote misapplied the fair-use doctrine.

"Meltwater is especially troubled by the implications of this decision for other search engines and services that have long relied on the fair-use principles for which Meltwater is fighting," the company said.

Jorn Lyseggen, Meltwater's founder and chief executive, said the company was considering options and looked forward to appealing to the 2nd U.S. Circuit Court of Appeals.

AP CEO Gary Pruitt said the ruling was important for the AP and "others in the news business who work so hard to provide high-quality original news reports on which the public relies."

"For years, all of us have been hearing that if it is free on the Internet, it is free for the taking. The judge in this case just rejected that argument," he said.

Earlier this year, The New York Times, USA Today publisher Gannett Co. Inc., the McClatchy Co. and Advance Publications Inc. said in court papers that their businesses would be jeopardized if Meltwater was permitted to continue as it had.

The publishers said the ability of companies to distribute their content without paying licensing fees jeopardized their websites and other digital businesses that generate revenue through advertising, subscriptions and licensing fees.

One of Meltwater's competitors, BurrellesLuce, joined in a friend-of-the-court brief to say that it operates at a disadvantage because it pays to license content that Meltwater takes for free.

The Electronic Frontier Foundation and Public Knowledge supported Meltwater in a court brief.

Caroline H. Little, president and CEO of the Newspaper Association of America in Arlington, Va., which joined an amicus brief on behalf of news companies, called the ruling a "monumental decision" that recognizes the value of newsgathering in society.

"The significant costs associated with global, national, regional and local newsgathering cannot be sustained if news organizations cannot protect the integrity of our publishing process," she said.

Meltwater was founded in 2001 in Oslo, Norway. According to the company's website, it has more than 800 employees working in 55 offices around the world.

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Expo-sure is key for game makers at PAX

Thousands of gamers will be descending on the Seaport District tomorrow — many dressed as their favorite characters — as the highly anticipated PAX East extravaganza kicks off, offering a glimpse of the latest video games while giving independent developers unparalleled exposure and a chance to make it big in a rapidly changing $67 billion industry.

Nearly 80,000 people from around the world are expected to attend the three-day expo at the Boston Convention & Exhibition Center, making it the largest trade show in New England and the largest gaming industry event on the East Coast.

"The audience at PAX matters," said Monty Sharma of the Massachusetts Digital Games Institute, or MassDiGi. "When it comes to connecting with fans, PAX is really it. Indie developers — small guys — don't have large marketing budgets. So you get 80,000 people walking past your game, and that's a huge boost."

This year's PAX East comes at a time when the marketplace for video games has been expanding to include more women, but shifting away from big games for consoles such as Xbox and PlayStation and toward games for mobile devices including iPads and iPhones, MassDiGi execs noted.

The most high-profile indication of that shift was this week's departure of John Riccitiello as chief executive of Electronic Arts after the big console game producer's recent disappointing financial returns.

"Fifteen years ago, you couldn't play a game on your cellphone. There's a revolution that's been happening in the last five years in the industry with the rise of Facebook games and mobile," said Trevor Stricker, president of Boston-based developer Disco Pixel. Another major shift is toward digital distribution — meaning people can download games without going to a store.

In the past 18 months, Erik Asmussen, the founder of 82 Apps, a Cambridge-based independent developer, has launched three games, including "PWN: Combat Hacking," which was released March 14 and will be showcased at PAX.

"Games that cost $50 million to make means they're riskier," Asmussen said. "The advantage to being a small developer is I'm giving my own time, and I'm not incurring massive debt. It allows me to be a little more risky, a little more nimble. I can go to shows like PAX and talk directly to the audience and hear what they want."

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Managers have ball in their court

Some companies blame March Madness for distracting workers and sapping office productivity, but other firms say the college basketball tourney actually boosts morale and can be a team-building tool.

ZeroTurnaround, a Hub-based Java productivity tools maker, is among the companies that uses the tournament to boost competition between sales staff to generate new opportunities and deals.

"Our 'March Madness' is about hitting our March numbers, and if people are hitting their numbers, I don't care if they check ESPN," ZeroTurnaround President and COO Alex Laats told the Herald. "If you just recognize that it's on people's minds and if you can turn that around and turn it to your advantage, then you can boost productivity and have fun with it."

At Jumptap, employees rally around March Madness through group polls and viewing parties after work. Later this month, Jumptap's MobileSTAT, a monthly report that shows mobile audience trends, will include March Madness-themed data, said spokeswoman Christina Feeney: "For Jumptap as a business, it's absolutely a positive."

The hoops competition heats up today and tomorrow as 64 teams face off on the road to the national championship.

A recent Challenger, Gray & Christmas study found that the tournament's first two days of play will cost American companies at least $134 million in "lost wages" as an estimated 3 million employees will spend one to three hours following the basketball games instead of working.

Even President Obama took time out of his busy schedule to release his tourney picks. The commander-in-chief has Indiana beating Louisville to win the national championship.

But Katie Loehrke, an editor at J.J. Keller & Associates, said March Madness can give workers with little in common something to bond over.

"One of the things that can really influence morale in a positive way is employees who feel like they're trusted," she said. "If they're trusted to get their work done and still be able to flip over to ESPN.com for five minutes ... that can boost morale."

Hub-based online fantasy sports startup DraftKings has an internal bracket challenge going on among its 13 employees that's designed to help them generate better products and experiences for customers.

"There's no better way to know what a sports fan wants than to live it," said CEO Jason Robins.

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Sox hit deal out of park

The owners of the Boston Red Sox have snapped up a parking garage on Lansdowne Street opposite Fenway Park, paying $10.5 million for the potential redevelopment play.

"I'm not sure what exactly they have in mind for the property, but they could expand it, go up, a lot of different things," said John Rosenthal, the Hub developer who sold the garage that Sox sluggers sometimes hit with out-of-the-park home runs. "It has great potential."

The garage sale stems from a partnership Rosenthal struck six years ago with the Sox that paved the way for his $450 million Fenway Center project, set to break ground this year.

Under current zoning, the two-story garage could be converted into an eight-story building — about twice the height of the iconic Green Monster across Lansdowne.

The Sox were tight-lipped yesterday about what they'll do. "It will be operated as a parking garage for the foreseeable future," Sox spokeswoman Zineb Curran said.

Marc Ganis, a Chicago-based sports business expert, said it's a no-brainer for the team to take control of the 340-space garage.

"If you are the Red Sox and you are landlocked, so to speak, anytime a property adjacent to the stadium becomes available you have to buy it, even if you don't have any immediate uses for it," Ganis said. "It's both an offensive move to expand and a defensive move to prevent competing businesses from moving in."

Rosenthal bought the garage for $2.5 million in 1993 and planned to redevelop it. But, facing opposition from the Sox owners, who wanted to protect historic Fenway Park, Rosenthal shifted his project to Sox-owned parking lots and Pike air-rights parcels on the other side of Brookline Avenue.

Rosenthal and the Sox remain partners on a Pike air-rights parcel behind the garage, "so that could be a future development site."

Rosenthal's highly visible Stop Handgun Violence billboard covers the back of the garage along the Pike. An easement will allow the billboard to stay, but Rosenthal expects it to eventually find a new home.

Ganis said that with the salary savings alone from last year's big trade with the Los Angeles Dodgers, the Red Sox can afford to take it slow on the garage.

"The debt service on $10.5 million isn't very much," he said. "Getting rid of Carl Crawford for half a season took care of that ... and they got something that will last forever. They should send the Dodgers a thank-you card."

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Device blocks cell use in cars

The West Bridgewater Police Department is touting a device they say can save lives by preventing people from texting, emailing or calling while driving.

Sgt. Tim Nixon said the department will describe the Cellcontrol Trigger to parents today at West Bridgewater High School's Safety Night and give away 10 of the devices as door prizes.

"When my kids are old enough to drive, they will be having something like this," Nixon said. "It takes the thought process out of the equation for the driver. The parent is the one who chooses the control options."

The Trigger works by plugging into a vehicle's on-board diagnostics port, which is located just under the steering wheel.

Once connected, the device automatically transmits information to the driver's mobile phone, deactivating such features as email, phone, text and the Internet the moment the vehicle begins to move.

The phone remains on, but the driver can't use it except to call 911 or a number the parent has put on an approved list.

The Trigger, which retails for $89, can also be used with tablets and laptops, and by companies with fleets of vehicles, said Chad Kennedy, senior vice president of engineering for Cellcontrol.

In 2011, 3,331 people were killed in crashes involving a distracted driver, compared to 3,267 in 2010, according to the Centers for Disease Control and Prevention. Another 387,000 people were injured in such crashes in 2011.

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Average for US jobless claims at fresh 5-year low

WASHINGTON — The number of people seeking U.S. unemployment aid barely changed last week, while the average over the past month fell to a fresh five-year low. The decline in layoffs is helping strengthen the job market.

Weekly unemployment benefit applications rose just 2,000 to a seasonally adjusted 336,000, the Labor Department said Thursday.

Over the past four weeks, applications have dropped by 7,500 to 339,750. That's the lowest since February 2008, just three months into the recession.

Economists pay close attention to the four-week average because it can smooth out week to week fluctuations. The steady decline in unemployment claims signals that companies are laying off fewer workers. That suggests many aren't worried about economic conditions in the near future.

"Improvement in labor market conditions continues," Julia Coronado, an economist at BNP Paribas, said in a note to clients.

The four-week average has fallen nearly 15 percent since November. The trend has coincided with acceleration in the job market.

Employers have added an average of 200,000 jobs per month since November. That's nearly double the average from last spring.

And in February, the unemployment rate fell to a four-year low of 7.7 percent.

Jennifer Lee, an economist at BMO Capital Markets, said the drop in the average number of unemployment applications over the past month suggests job gains in March could top 200,000.

Nearly 5.4 million people were receiving unemployment aid as of the week ended March 2, the latest data available. That was about 250,000 fewer than the previous week. The data on total unemployment benefit recipients are not seasonally adjusted and is volatile.

The job market is benefiting from stronger auto sales and a healthy recovery in housing. Homebuilding permits jumped to their highest level in 4 ½ years in February, suggesting that recent strong gains in home construction will continue. New-home sales jumped 16 percent in January to the highest level since July 2008. Auto sales, meanwhile, rose in January and February after hitting a five-year high in 2012.

The housing and auto sectors are being helped by the Federal Reserve's efforts to keep interest rates low, policies the Fed stood by Wednesday after a two-day meeting.

The Fed reinforced its plan to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it said it would continue buying $85 billion a month in bonds indefinitely to keep long-term borrowing costs down.

During a news conference after the meeting, Chairman Ben Bernanke acknowledged the job market has accelerated but said the Fed wants to see sustained improvement before altering its stimulus policies. Unemployment benefit applications are one of the measures Bernanke said the Fed is closely monitoring.

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UK to deliver another austere budget

LONDON — Britain is on the verge of slipping back into recession, it has seen its top AAA credit rating cut, and living standards have dropped under the impact of austerity measures.

Even so, Treasury chief George Osborne is expected to cling to his message of tax hikes and spending cuts when he delivers his budget Wednesday, warning that failure to reduce borrowing could leave Britain in the same state as Cyprus or Greece.

Prime Minister David Cameron has said such debt reduction measures, which have the nasty side-effect of hurting economic growth, are the way forward. There's no indication that anyone has changed their minds.

"Today I'll present a Budget that tackles the economy's problems head on, helping those who want to work hard and get on," Osborne said Wednesday on his Twitter page.

Government cutbacks, financial troubles among key trading partners in Europe and difficulties in restructuring the banking industry have held Britain back. Economic forecasts give Osborne little room to maneuver, with sluggish growth likely to reduce tax revenues.

The economy shrank by 0.3 percent in the last three months of 2012, with predictions of another contraction in the first quarter of 2013. That would put the U.K. back into a recession — technically defined as two consecutive quarters of economic contraction — for the third time in about four years.

Osborne has signaled that some government departments will be ordered to free up 2.5 billion pounds ($3.77 billion) that will be diverted to infrastructure projects, including public housing.

The Conservatives' coalition partners, the Liberal Democrats, have been pushing for more projects funded by borrowing in a hope of supporting economic growth.

Just hours before the key speech, unemployment data offered still more bad news, with joblessness increasing by 7,000 between November and January to 2.52 million. The increase was caused by more 18-24 year olds becoming unemployed. The rate remained at 7.8 percent, compared with 8.3 percent a year ago.

In a reminder of the struggles the austerity programs have brought, thousands of public workers have gone on strike, and will be picketing as Osborne delivers his speech in the early afternoon.

The Trade Union Conference, an umbrella organization for unions with 6.2 million members, said the increase in capital spending that is expected to be presented in the budget isn't enough to kick-start the economy, boosting growth by just 0.06 percent.

The opposition, headed by Labour Party leader Ed Miliband, argues it is time to change course.

"The government is borrowing over 200 billion more than he had planned," Miliband said. "Why? Because it's paying for failure, its failure to get growth moving. And it's also making Britain's families pay for that failure.

"We need a change of course from George Osborne today. What we don't need is him saying I'm going to stick to my failed plan."

Underlining the gravity of the day, Osborne made his first venture into Twitter, choosing to take his message directly to voters. He also posted a picture of himself signing papers beside the scarlet briefcase that symbolizes the day.

By midday, he had registered a single Tweet — but had nearly 22,000 followers. Unfortunately for Osborne, he also found himself bombarded by disparaging comments and the butt of anger pinned to the pain of the austerity plan.

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Markets sanguine over Cyprus uncertainty

LONDON — Markets took the uncertainty over Cyprus' bailout in their stride on Wednesday ahead of the latest policy statement from the Federal Reserve.

Though tensions remain over the financial future of Cyprus after its Parliament rejected a proposal to raid deposits, investors think some deal will be cobbled together soon, probably with Russia, to avoid the country's bankruptcy and possible exit from the euro.

"A deal with Russia is clearly seen as the best option in the markets, where investors are piling back into risk assets," said Craig Erlam, market analyst at Alpari.

Germany's DAX was up 0.4 percent at 7,981 while the CAC-40 in France rose 0.3 percent to 3,788. The FTSE 100 index of leading British shares was flat at 6,440 ahead of the annual budget, which is expected to offer a fairly depressing economic outlook.

Wall Street was poised for a solid opening, with both Dow futures and the broader S&P 500 futures up 0.3 percent.

Trading over the rest of the day will likely continue to be impacted by developments relating to Cyprus as political leaders there try to work out a new way to raise the 5.8 billion euros ($7.5 billion) in order to qualify for 10 billion euros worth of bailout funds from its euro partners and the International Monetary Fund. Much of the interest centers on Moscow, where the Cypriot finance minister Michalis Sarris is meeting his Russian counterpart.

Russia could play a role in any alternative rescue package. Russians are believed to account for just under a third of Cyprus's 68 billion euro bank deposits and the two countries are longtime allies.

"We will be here until some kind of agreement is reached," Sarris said.

Cypriot markets remained closed alongside banks and there is growing speculation they won't reopen until next week. If Cyprus doesn't work out a way to get the money it needs, the banks could fail, fueling financial chaos that could eventually cause the country to leave the euro. That's a scenario European policymakers fought to avoid with other countries for fear that an exit by one may spell the eventual end of the currency.

Investors will also be monitoring the U.S. Federal Reserve, which ends a two-day policy meeting later Wednesday. The Fed is expected to keep borrowing costs at record low levels despite signs of a strengthening economy. The meeting will end with updated economic forecasts and a policy statement, with possible hints on the future of the Fed's stimulus program. Chairman Ben Bernanke will hold a news conference.

"Bernanke's press conference will be monitored for clues as to the Fed's eventual exit policy," said Neil MacKinnon, global macro strategist at VTB Capital.

What emerges could have a big bearing on the dollar, too. If there are hints that the monetary easing the Fed has conducted over the past few years is coming to an end, it may prompt a dollar surge, especially at a time when the euro is facing headwinds.

The euro managed to recover somewhat Wednesday, along with stocks, trading 0.4 percent higher at $1.2917. Earlier this week, the euro fell to its lowest level against the dollar in 2013.

Earlier in Asia, Hong Kong's Hang Seng rose 1 percent to 22,256.44 while South Korea's Kospi fell 1 percent to 1,959.41. Mainland Chinese shares rose on optimism about the economic outlook as concerns over recent property price curbs faded. The Shanghai Composite Index surged 2.8 percent to 2,317.37, the biggest gain in more than two months, while the smaller Shenzhen Composite Index added 2.7 percent to 949.82.

Stock markets in Japan were closed for a public holiday.

Oil prices advanced alongside equities, with the benchmark New York rate up 72 cents at $93.24 a barrel.

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Cyprus rushes to find Plan B to avoid bankruptcy

NICOSIA, Cyprus — Cypriot officials rushed Wednesday to find a new plan to stave off bankruptcy, a day after Parliament rejected an initial scheme to contribute to the nation's bailout package by seizing up to 10 percent of people's bank savings.

Tuesday's decisive rejection of the plan to take a slice of all deposits above 20,000 euros ($25,888) has left the country's bailout in question. Without the bailout, the Cypriot banking sector would collapse, devastating the country's economy and potentially causing it to leave the euro.

That could roil global financial markets as well as endanger deposits in the country even further.

Government spokesman Christos Stylianides said a meeting was underway at the central bank to discuss an alternative plan for raising funds, but also for reducing the 5.8 billion euros ($7.5 billion) that must be found domestically.

President Nicos Anastasiades met with the representatives of his country's potential creditors — the International Monetary Fund, European Central Bank and European Commission — but issued no statement on the result. The three, known as the troika, must sign off on any Plan B the Cypriots come up with if it is to be approved as part of the bailout.

The ECB, which is keeping the Cypriot banking sector alive by allowing the local central bank to extend emergency support, has said it would end that aid if there was no bailout deal and it was clear the banks had no hope of becoming solvent again.

For now, the ECB says it will continue allowing banks access to credit. But experts note that if there's no bailout deal within days, the ECB will have to end it.

Under the initial bailout plan conceived in Brussels last weekend, other eurozone countries and the IMF would give Cyprus 10 billion euros ($12.9 billion) in rescue loans if the country raised 5.8 billion euros ($7.5 billion) through the bank deposit seizures.

The plan was initially to take 6.75 percent of deposits up to 100,000 euros and 9.9 percent on those above that threshold. That caused outrage, leading the government to propose an amended version that would have spared deposits up to 20,000 euros. But that new plan also failed to win over Cypriot lawmakers.

The central bank's deputy governor, Spyros Stavrinakis, said no decision had been taken on when banks, which have been shut since the weekend, would reopen, and that a new plan has not yet been presented to the country's euro partners and IMF.

The banks remained shut for the third day running to avoid a bank run, and there are growing expectations they may not reopen until next week — certainly not until Cypriot authorities come up with a credible financial package that has the troika's blessing.

The new plan must also win approval from lawmakers.

In a two-pronged approach to the crisis, Finance Minister Michalis Sarris was in Moscow for meetings with his Russian counterpart. Russia could play a key role in any alternative package that may emerge. Russians are believed to account for just under a third of Cyprus's 68 billion euro bank deposits.

"We will be here until some kind of agreement is reached," Sarris said.

In Nicosia, residents waited anxiously to see what lay in store for them.

Avetis Bahcecian has been running his Armenian restaurant in Nicosia for years. Now, with the uncertainty swirling around Cyprus, he's worried about his business.

"Whatever they do, they have to do it quickly because this uncertainty is hurting business," the 41-year-old said as he kneaded dough to make lahmacun, a traditional Armenian pizza-style food. "Our business is down by 40 percent in the last couple days."

ATMs have been dispensing cash and debit and credit cards have been working, so Cypriots have not faced any immediate cash shortage for day-to-day living.

A Cypriot financial official said authorities were working on bills which would need parliamentary approval aiming to limit the amount of money leaving the country, and that a decision would be announced later on how long the banks would remain closed. The official spoke on condition of anonymity as they were not authorized to release the information.

A government official said an alternative plan to raise the 5.8 billion euros had been drafted and was to be presented to the troika, most likely on Wednesday. The plan would raise money from domestic sources, including pension plans and subsidiaries of foreign banks active in Cyprus.

One of those domestic sources may be the country's influential Orthodox church.

Its head, Archbishop Chrysostomos II, said he would put the church's assets at the country's disposal, saying the church was willing to mortgage its assets to invest in government bonds. The church has considerable wealth, including property, stakes in a bank and a brewery.

"The wealth of the church is at the disposal of the country," Chrysostomos said after meeting with Anastasiades Wednesday morning.

___

David McHugh in Frankfurt, Germany, contributed to this report.

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Website offline where stolen credit reports posted

WASHINGTON — The Russian website where hackers had published the stolen credit reports for Michelle Obama, the attorney general, CIA director, FBI director and other politicians and celebrities has mysteriously disappeared. It's been inaccessible since late Tuesday.

Whoever was behind the website published a rambling statement earlier this week described as "our final message" and said the efforts were intended for "entertainment and laughs." The note was signed off with the message "from Russia with love." Before it shut down, the site published what it said were the credit reports of 29 politicians and celebrities.

Russian Internet executives told The Associated Press last week they were investigating whether the person who registered the website's Internet address had falsified their contact information, which would allow them to shut down the site.

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UK public OK with creating babies from 3 people

LONDON — Britain's fertility and embryology regulator says it has found broad public support for in vitro fertilization techniques to allow the creation of babies with DNA from three people for couples who might otherwise face the risk of passing on certain genetic diseases.

The group began a public consultation at the government's request last year.

In a statement Wednesday, the group said it found most people "trust the scientific experts and the regulator to know when it is appropriate to make (the technologies) available to patients."

Such treatments are currently only allowed for research in the U.K.; British law forbids altering a human egg or embryo before transferring it into a woman. The regulator will pass its findings to the government, which will consider whether to propose changing the law.

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Fed likely to back low-rate policies despite gains

WASHINGTON — The U.S. economy is strengthening on the fuel of more job growth, rising home prices and solid retail sales. Just don't expect the Federal Reserve to let up in its drive to keep stimulating the economy with record-low interest rates.

Not yet, anyway.

That's the view of economists as Fed policymakers hold a two-day meeting that starts Tuesday. On Wednesday, the Fed will issue a policy statement and update its economic forecasts, and Chairman Ben Bernanke will hold a news conference.

All of which will likely reinforce Bernanke's stated view that the job market, in particular, has a long way to go to full health and still needs the Fed's extraordinary support.

The unemployment rate, at 7.7 percent, remains well above the 5 percent to 6 percent range associated with a healthy economy. The Fed has said it plans to keep short-term rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it foresees unemployment staying above 6.5 percent until at least the end of 2015.

On Wednesday, economists think Bernanke will acknowledge the economy's gains. But most foresee no pullback in the Fed's strategy of keeping short-term rates at record lows and of buying $85 billion a month in Treasurys and mortgage bonds to keep long-term loan rates down.

"They will keep the pedal to the metal at this week's meeting," says Diane Swonk, chief economist Mesirow Financial. "Even though the economy has improved, it has not improved enough to switch course. We still don't have unemployment low enough."

The economy slowed to an annual growth rate of just 0.1 percent in the October-December quarter, a near-stall that was due mainly to temporary factors that have largely faded. Economists think growth has rebounded in the January-March quarter to an annual rate around 2 percent or more. The most recent data support that view.

Americans spent more at retailers in February despite higher Social Security taxes that shrank most workers' paychecks. Manufacturing gained solidly in February. And employers have gone on a four-month hiring spree, adding an average of 205,000 jobs a month. In February, the unemployment rate, though still high, reached its lowest point in more than four years.

The brighter news has prompted speculation that the Fed might be preparing to dial back its easy-money policies. Such thinking has been fed by concerns voiced by a few Fed regional bank presidents about the low-rate policies.

These include fears that the Fed has pumped so much money into the economy that it could eventually ignite inflation, fuel speculative asset bubbles or destabilize markets once the Fed has to start raising rates or unloading its record $3 trillion investment portfolio.

Minutes of the December and January policy meetings showed that some officials suggested that the Fed might need to at least scale back its $85 billion-a-month in bond purchases. Still, the low-rate policies received solid backing in 11-1 votes. And economists see no sign that this support is eroding.

When he gave the Fed's twice-a-year economic report to Congress in February, Bernanke defended the low-interest rate programs. And while he acknowledged the fears of critics, he downplayed them. He struck the same note in a speech to a conference in San Francisco. There, Bernanke said it would be "quite costly" to the U.S. economy if the Fed pulled back too soon.

At their last meeting Jan. 28-29, Fed officials reaffirmed their decision in December to keep short-term rates at super-lows at least as long as unemployment stays above 6.5 percent. The Fed's benchmark rate for overnight bank lending has remained at a record low near zero since December 2008. The Fed also repeated its plan to keep buying bonds to lower long-term rates until the job market had improved "substantially."

One reason for the Fed's reluctance to reduce its stimulus is the history of the past three years. In each of the three, economic prospects looked promising as the year began. Yet in each case, the economy stumbled.

In 2010, U.S. growth was hurt by turmoil from Europe's debt crisis. In 2011, a spike in gas prices and supply disruptions caused by Japan's earthquake and tsunami dampened growth. And in 2012, higher gas prices cut into consumer spending.

Though the economy has brightened this year, it still faces threats, including across-the-board government spending cuts that took effect March 1 and are expected to trigger furloughs and layoffs. Those spending cuts, along with the Social Security tax increase and higher taxes on top earners, are expected to cut growth in half this year, according to the Congressional Budget Office. The CBO predicts that the drag will slow growth by 1.5 percentage points, to 1.5 percent.

"There are still question marks over the economy," says David Wyss, former chief economist at Standard & Poor's and now a professor at Brown University. "Things are looking a little better, but they are not better enough to make the Fed change anything significantly."

As for concerns that the Fed's easy-money policies will escalate inflation, Wyss suggests looking at Japan, which has pursued similar policies for 20 years without triggering runaway prices. The bigger danger in Japan remains the opposite threat of deflation — a prolonged period of falling prices.

David Jones, chief economist at DMJ Advisors, expects the Fed's policies to remain intact this week and at its April meeting. But he says policymakers might signal at their June meeting that they're considering some changes in their bond-buying program.

"I think the June meeting will be the one that really counts," Jones says. "At that time the Fed might consider at least tapering its $85 billion in bond purchases to a smaller level."

Whenever the Fed announces that it's ending some aspect of its easy credit, Jones says he expects the news to jolt financial markets, causing rates on long-term Treasurys to rise and stock prices to drop.

"The Fed has artificially depressed long-term interest rates and artificially boosted the stock market for such a long period of time and by such a large amount, that no one can predict how much financial market instability will occur at the first hint they are pulling back on accommodation," Jones says.

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Cyprus proposes no charge on small account holders

NICOSIA, Cyprus — Cypriot finance officials are revising a planned financial bailout to relieve small account holders from having to pay a charge on their savings in order to secure an international rescue of the country's troubled banks.

Under a new draft bill discussed in Parliament's finance committee Tuesday, deposits below €20,000 ($25,900) would be exempt from any charge. Those between €20,000-€100,000 would have a 6.75 percent levy imposed, and those above €100,000 would have a 9.9 percent charge.

European officials have said €5.8 billion of the €15.8 billion rescue package must be raised by Cyprus.

The country's central bank governor recommended that no levy be imposed on accounts below €100,000 — the amount that is insured by the government.

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India cuts key interest rate to 7.5 percent

MUMBAI, India — India's central bank lowered its key interest rate by a quarter percentage point Tuesday as it tries to revive stalled growth in Asia's third-largest economy. The announcement was overshadowed by India's minority government losing a coalition partner.

In making its second rate cut in three months, the Reserve Bank of India cited the weakest economic growth in 15 quarters as outweighing inflation fears. High prices, especially for food, still remain a concern and could limit the bank's scope to reduce the rate much below its current 7.5 percent.

"Growth has decelerated significantly, even as inflation remains at a level (that) is not conducive for sustained economic growth," the central bank said in a statement.

The bank's move was eclipsed by the already shaky coalition government losing the support of a key ally. That could add to government instability and delay economic and financial reforms needed to boost growth. The Sensex stock index was down 1 percent.

The government earlier this month estimated the economy grew 4.5 percent in the October-December quarter, down sharply from growth rates near 10 percent earlier in the decade.

While wholesale inflation has been hovering near three-year lows in recent months, the retail consumer price index hit a high of 10.9 percent in February, mostly due to soaring prices for cereals and meat.

The two figures mean the bank is balancing conflicting goals of keeping price increases under control while lowering interest rates to encourage consumer spending and business investment.

Analysts say that even with the recent cuts, lending rates may still be too high to prompt businesses to borrow. The central bank also on Tuesday left the cash reserve ratio for banks untouched Tuesday, after lowering it by a quarter point to 4 percent in January. A lower cash reserve ratio frees up more money for commercial banks to lend.

Businesses applauded Tuesday's cut in the policy repo rate — the interest rate at which commercial banks can borrow from the central bank — but said more action may be needed before banks are encouraged to lower the rates at which they lend to industry.

"We believe this would certainly lend some support to the flagging industrial growth," said Naina Lal Kidwai, president of the Federation of Indian Chambers of Commerce and Industry, based in Mumbai.

However, she said that commercial banks are unlikely to cut their own rates in a hurry, mostly because deposit growth of about 12.5 percent still lagged behind credit growth of 15-17 percent.

"The key for industry is for lending rates by banks to come down, but this would happen only when banks are comfortable with deposits," Kidwai said.

India's economy is expanding at its slowest pace in a decade, with gross domestic product predicted to grow as little 5 percent in the fiscal year ending March 31. That's down from 9 percent in early 2011, and it's paired with rising budget and current account deficits that have weakened India's currency.

The government estimates the country needs at least 8 percent growth to create enough new jobs for the 13 million Indians entering the workforce each year.

The finance minister last month unveiled a new budget aimed at trimming the budget deficit and attracting foreign investment.

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Cyprus crisis hurts Greek bank stocks

ATHENS, Greece — Banks stocks were sharply lower on the Athens Stock Exchange, as trading resumed for the first time in Greece since the details of a bailout in Cyprus and a shock levy on bank deposits were announced.

Following broader losses in Europe, shares on the Greek bourse were down 2.1 percent early Tuesday, with banking stocks down as much as 5 percent.

Following a public holiday Monday, Greek branches of the Cypriot lenders the Bank of Cyprus, Laiki Bank and Hellenic remained closed Tuesday and Wednesday. Trading in the shares of Bank of Cyprus and Laiki was also suspended for two days on the Athens Stock Exchange.

Public activity at Greek banks appeared normal Tuesday, following repeated assurances by the government that all deposits were safe.

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A look at Cyprus' move to seize bank deposits

PARIS — Lawmakers in Cyprus are still scrambling for a way to raise €5.8 billion ($7.5 billion) to help pay for an international bailout of the country's banks and government.

A plan to seize up to 10 percent of people's savings has been met with fury and it has raised concern, if not panic, in the rest of Europe about the security of bank deposits in times of financial turmoil.

On Tuesday, Cypriot lawmakers are scheduled to vote on a revised plan that would not be so burdensome for people with less than €100,000 in the bank. Any plan must be approved by the other eurozone countries, which would then commit €10 billion in rescue loans to Cyprus.

Banks in Cyprus will remain shut until Thursday to give political leaders time to hash out a deal.

Here's a look at the plan and the problems it may pose.

HEY, HOW CAN THEY DO THAT?

As a member of the euro currency, Cyprus can raise or lower taxes whenever it wants. It isn't the first time that a eurozone nation has raised taxes to cope with mounting debt and to prop up struggling banks. Residents of Greece, Portugal and Ireland — all bailout recipients — have seen their tax bills skyrocket in recent years as those countries tried to reduce their debts. But Cyprus is charting new ground here, and there could be legal — and political — challenges.

AND HOW EXACTLY WILL IT WORK?

Banks have already acted to seal off the amount of the levy — a 6.75 percent tax on deposits under €100,000 and 9.9 percent on those above — so depositors can't access it. Banks will remain closed until Thursday to avoid a rush of withdrawals while lawmakers finalize the move. They will vote on Tuesday, but some are seeking modifications, mainly to lower the tax rate on deposits under €100,000. To do that, however, they have to raise the rate for the larger depositors, since the overall scheme has to raise a total of €5.8 billion.

HAS THIS EVER HAPPENED BEFORE?

So far in the euro crisis, depositors have been protected. But European countries have taxed bank deposits before. In the 1990s, Italy levied a tax on every bank account to stave off the collapse of its lire currency. The rate, however, was miniscule — 0.06 percent — compared to what Cyprus is enacting. Iceland — another island with an outsized financial sector, although worse weather — also relied on depositors to prop up its banks. When the crisis hit there in 2008, Iceland protected its domestic deposits but reneged on deposit insurance for overseas, Internet-based accounts held by British and Dutch. Those two governments stepped in to help their citizens to the tune of $5 billion. The U.K. and the Netherlands sued Iceland unsuccessfully in a European court to get their money back, but Iceland has nevertheless started to repay some of that money.

European officials are promising that Cyprus is a unique case, and they are right in one aspect: Cypriot banks are overwhelmingly funded by deposits, not bondholders. So it wouldn't have been very fruitful to go after bondholders.

WHO IS AFFECTED?

All people with money in Cypriot banks — except those with money in Greek branches, which will be sold to Greek banks. EU and IMF creditors clearly wanted to protect struggling Greece, but perhaps also saw that Greece is the most likely place in the eurozone for a bank run. Protecting depositors there minimizes that possibility. Of the more than €68 billion on deposit in Cypriot banks, foreigners hold about 40 percent — and most of those are Russians. Cyprus could have only gone after non-EU depositors, but it may have been hard to distinguish between Cypriot and Russian savers, said Jacob Kirkegaard, senior fellow at the Peterson Institute for International Economics in Washington. That is because many Russians have dual citizenship and many Russian businesses are registered on the island. Kirkegaard said Cypriots may paradoxically welcome this measure since the government just managed to widen its tax base to include a lot of Russians; the taxes levied in Greece, Portugal and Ireland were for residents alone to shoulder.

WHY DID CYPRUS NEED A BAILOUT?

Cyprus built its economy in recent years by becoming a financial center, much the way Ireland and Iceland before it did. Its banks offered Internet accounts to foreigners, were renowned for their service, provided substantial privacy to clients and had very low taxes. It worked so well that Cyprus' banking industry ballooned to nearly eight times the country's gross domestic product at the height of the boom. In December, it was still more than seven times Cyprus' €17.5 billion GDP. Russians — looking for warmer climes, lower tax rates and shared culture in the form of Orthodox Christianity — are thought to hold the majority of those accounts, with about €20 billion in the island's banks.

But Cyprus' banks held a lot of Greek debt and suffered significant losses when they took a writedown of those bonds as part of the Greek bailout. Much of Cyprus' bailout money will be used to recapitalize Cypriot banks to prevent them from collapsing. Like other eurozone countries, Cyprus has also seen its deficit and debt explode as growth has ground to a halt. And with the banking system so large, the government wouldn't have been able to bail it out even in a healthy economy.

WHY DO RUSSIANS KEEP SO MUCH MONEY IN CYPRUS?

Russian businessmen have preferred to place their savings in offshore jurisdictions, partly to escape political uncertainty and corruption in Russia. Cyprus offers a 10 percent corporate tax rate and relatively stable political situation. Cyprus is also believed to be a top destination for money-laundering. It is much safer for a corrupt Russian official to keep proceeds from illegal activities abroad, hiding information about their fortunes and holdings away from the prying eyes of Russian banking regulators. Russian officials estimated that about $49 billion, which is equivalent to 2.5 percent of Russia's gross domestic product, was wired to foreign accounts illegally last year.

WHAT HAS THE MARKET REACTION BEEN?

Stock markets and the euro dropped on Monday but not too much. Kirkegaard says that the decision to tap depositors indicates that the European Central Bank is confident that the risk of a bank run elsewhere in the eurozone is low — and by excluding Greek branches of Cypriot banks, they have reduced the possibility even further.

But Heather Conley, director of Europe program for the Center for Strategic and International Studies, says it's hard to know the far-reaching implications of this one-off deal. The "exceptions" created to solve Europe's debt crisis are adding up, she said. And some investors may look at this late-night, three-day-weekend deal and see what she saw: a dress rehearsal for a country dropping out of the euro.

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AP writer Menelaos Hadjicostis contributed to this report from Nicosia, Cyprus.

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Justice official to be nominated to top Labor slot

WASHINGTON — Seeking to fill yet another second-term Cabinet vacancy, President Barack Obama is set to nominate Thomas Perez, an assistant attorney general, to be the next secretary of labor, the White House says.

If confirmed by the Senate, Perez, who has been head of the Justice Department's Civil Rights Division for 3½ years, would take over the Labor Department as Obama undertakes several worker-oriented initiatives, including an overhaul of immigration laws and an increase in the minimum wage.

Before taking the job as assistant attorney general, Perez was secretary of Maryland's Department of Labor, Licensing and Regulation, which enforces state consumer rights, workplace safety and wage and hour laws.

Obama plans to nominate Perez, 51, on Monday.

In choosing Perez, the son of immigrants from the Dominican Republic, Obama would be placing an already high-ranking Hispanic official in a Cabinet slot. Perez, a lawyer with a degree from Harvard Law School, would replace Hilda Solis, a former California congresswoman and the nation's first Hispanic labor secretary.

Perez's nomination has been expected for weeks, and comes with vigorous support from labor unions and Latino groups.

But a newly released report by the Justice Department's inspector general is likely to provide fodder for Republicans who say the Justice Department's Civil Rights Division has been too politicized.

The report, released last week, said Perez gave incomplete testimony to the U.S. Commission on Civil Rights when he said the department's political leadership was not involved in the decision to dismiss three of the four defendants in a lawsuit the Bush administration brought against the New Black Panther Party.

The report also concluded that Perez did not intentionally mislead the commission and that the department acted properly.

Republican Sen. Charles Grassley of Iowa said Perez appeared to be "woefully unprepared to answer questions" from the Civil Rights Commission.

Lynn Rhinehart, general counsel at the AFL-CIO, said the report shows that Perez, who was first hired by the civil rights division as a career attorney under President George H.W. Bush, restored integrity to the voting rights program at the Justice Department.

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Cyprus bailout deposit tax rattles markets

LONDON — Stocks around the world and the euro fell sharply Monday as investors fretted over a plan to tax depositors in Cypriot banks as a way to partly fund a bailout of the Mediterranean island nation.

Although Cyprus accounts for only around 0.2 percent of the economic output of the 17 European Union countries that use the common euro, the tax on depositors was a significant policy shift that has stoked fears of bank runs in other troubled European economies. Cyprus residents already emptied virtually all ATMs on the island in a weekend bank run.

"If European policymakers were looking for a way to undermine the public trust that underpins the foundation of any banking system they could not have done a better job," said Michael Hewson, senior market analyst at CMC Markets.

Since the European debt crisis began in late 2009, savers have been spared. But the bailout of Cyprus, agreed to early Saturday, foresees a 6.75 percent levy on deposits below €100,000 ($130,860), rising to 9.9 percent on those above.

The Cypriot Parliament has to back the proposal for it to pass, and lawmakers have called it an unfair blow to small savers, since deposits around the eurozone have been guaranteed up to the €100,000 level. The vote was postponed for a second time as lawmakers discuss possible changes to the tax rates, with the parliament speaker saying it will now take place Tuesday.

One new proposal would make the tax more graduated: placing a one-time 3 percent levy on deposits below €100,000, rising to 15 percent for those above €500,000.

"The bottom line is that it's very finely balanced and the success of the vote will depend on what tax breakdown goes before Parliament," said Adam Cole, an analyst at RBC Capital Markets.

The prospect of further uncertainty weighed on markets.

In Europe, the FTSE 100 index of leading British shares was down 1 percent at 6,428 while Germany's DAX fell 1.5 percent to 7,958. The CAC-40 in France was 1.5 percent lower at 7,955. Cyprus' stock exchange was closed for a bank holiday.

The euro was taking a pounding too, down 0.8 percent at $1.2950.

If it backs the levy, then Cyprus would be eligible for a €10 billion ($13 billion) financial rescue from its partners in the eurozone and the International Monetary Fund. It's the first time that deposits have been tapped to fund an EU nation's bank bailout.

German finance minister Wolfgang Schaeuble said a "no" vote by Cypriot lawmakers would have huge repercussions in the country.

"Then the Cypriot banks will no longer be solvent, and Cyprus will be in a very difficult situation," said Schaeuble, who insisted that every country involved in Europe's debt crisis is different. In the case of Cyprus, he said bank owners and investors had to participate in the rescue.

"It can't be done any other way if we want to avoid insolvency," he said.

Cyprus' banking sector is about eight times the size of the economy and has been accused of being a hub for money-laundering, particularly from Russia. That's why many European officials wanted to have the banks' depositors involved in the cost of the bailout.

In Asia, Japan's Nikkei 225 index slid 2.7 percent to 12,220.63, while Hong Kong's Hang Seng dropped 2 percent to 22,082.83.

Wall Street was headed for a retreat at the open too, with Dow futures down 0.6 percent and the broader S&P 500 futures 1 percent lower.

Oil prices were also under pressure, with the benchmark New York rate $1.20 lower at $92.25 a barrel.

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Geir Moulson in Berlin contributed to this report.

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Futures drop on bank tax in small Euro nation

NEW YORK — U.S. stock futures slumped Monday after the Mediterranean island nation of Cyprus proposed a hefty levy on bank deposits as a condition for a national bailout. The proposal roiled international markets,

The measures being proposed in Cyprus are stoking fears of bank runs in the other 16 nations that use the euro, though economists saw little chance of similar policies taking effect elsewhere, or even being approved in Cyprus.

Dow Jones industrial futures fell 77 points to 14,356. The broader S&P futures gave up 13.4 points to 1,540. Nasdaq futures shed 21 points to 2,769.50.

Lawmakers in Cyprus postponed the vote Monday on a deposit tax of 6.75 percent on accounts of up to €100,000 ($131,000) and 9.9 percent over that amount.

Still, shock over a threat to what had been considered private property spread rapidly, sending markets in Britain, German and France down 1 percent or more.

Markets in Asia slid between 2 percent and close to 3 percent.

U.S. markets are already trading at or near record levels and many investors have been trying to determine when the market will peak.

The disruption from Europe appeared to provide enough reason to take money off the table for many.

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Phone hacking lawyer: 100s of new victims

LONDON — British investigators have found hundreds more potential phone-hacking victims of Rupert Murdoch's now-defunct News of the World tabloid, a victim's lawyer said Monday.

Lawyer Hugh Tomlinson made the announcement at Britain's High Court during legal arguments related to the lawsuits against News of the World publisher News International. Tomlinson did not go into much detail, but hundreds of extra victims could translate into millions of extra damages for the UK newspaper company.

The phone hacking scandal has greatly damaged the reputation of the British tabloid press, which has been found to have hacked into the voicemails of celebrities, politicians, crime victims and others. Murdoch's company has already paid millions of pounds in settlements, and a national outcry forced British politicians to promise action to make the medial more responsible.

At a court hearing Monday, a lawyer said journalists at The Sun newspaper — another Murdoch title — harvested data from a lawmaker's stolen phone.

Lawyer David Sherborne said parliamentarian Siobhain McDonagh has accepted substantial but undisclosed damages from the newspaper after her cellphone was stolen from a parked car in 2010. Her text messages had later been accessed by The Sun, Sherborne said.

News International lawyer Dinah Rose acknowledged that The Sun was guilty of "serious misuse of her private information."

The revelations of new victims came only hours after British politicians announced they struck a last-minute deal over press regulation, unveiling a new code meant to curb the worst abuses of the country's scandal-tarred media.

The code follows days of heated debate over how to implement the recommendations of Lord Justice Brian Leveson, who held an inquiry that aimed to clean up a newspaper industry plunged into crisis by revelations of widespread phone hacking.

Victims' groups have lobbied for an independent watchdog whose powers are enshrined in law but media groups have said that threatens press freedom.

The deal struck early Monday appears to be a complicated compromise.

"I think we have got an agreement which protects the freedom of the press, that is incredibly important in a democracy, but also protects the rights of people not to have their lives turned upside down," senior opposition leader Harriet Harman told broadcaster ITV.

Unlike the U.K.'s widely discredited Press Complaints Commission, which barely bothered to investigate allegations of phone hacking before the scandal broke, the new regulator being proposed by politicians would be independent of the media and would have the power to force newspapers to print prominent apologies.

Submitting to the regulatory regime would be optional, but media groups staying outside the system could risk substantial fines if they get stories wrong.

And rather than being established through a new press law, which advocates of Britain's media have described as unacceptable, the regulatory body would be created through a Royal Charter, a kind of executive order whose history stretches back to medieval times. Adding to the complexity, a law would be passed to prevent ministers from tweaking the system after the fact.

Harman acknowledged that the charter was "quite a sort of complex and old-fashioned thing" but said it "kind of more or less ... has got legal basis."

Victims' group Hacked Off said Monday it believes the deal will go a long way toward preserving press freedom and protecting the public from fresh abuses. The groups said it remained concerned about how newspaper groups would be cajoled into joining.

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Myanmar holds off on press law following criticism

YANGON, Myanmar — Myanmar journalists just getting used to their new era of freedom howled when the government announced plans for a media law that could lock many old restrictions back into place. Then, in the latest of many moves that never would have happened under the country's old military rulers, the government backed off.

A bill restricting publishers, drawn up by the Ministry of Information without input from press groups, might yet become law. But journalists' complaints helped scuttle plans to pass the legislation as soon as this week.

Now the changes won't be considered until June at the earliest, and only after government officials consult with members of the media. The information minister, who had said "poisonous" publications had made new rules necessary, is to discuss the proposal with journalists Saturday.

"I think the minister finally understands that the media industry is totally against the draft," said Zaw Thet Htwe, the editor of a health journal and a former political prisoner. "We cannot predict the outcome of our meeting on Saturday but we are happy that the minister listens to the views."

A new law could have had a chilling effect on the media days before Myanmar is to allow private daily newspapers to operate for the first time since 1964. Other private publications such as weeklies are already allowed, but the April 1 return of private dailies has been hailed as another step toward greater press freedom and democratic change.

The publishing bill had been scheduled to be discussed this week in Parliament, which will adjourn Friday and reconvene in June. Zaw Thet Htwe said he learned Monday that the bill is now off the agenda.

Kyaw Min Swe, editor-in-chief of the private weekly The Voice, said the speaker of Parliament's lower house did not allow debate on the legislation "because many media organizations have sent letters of criticism" to parliamentary officials. Legislators were in session until Monday evening and were not immediately available.

The proposed law would replace even tougher rules established in 1962 by the government of the late dictator Ne Win. The existing law allows the government to revoke licenses at any time and carries a maximum seven-year sentence for failing to register, though the current government has not used those provisions.

Journalists in Myanmar, also known as Burma, were regarded for decades as among the most restricted in the world, subjected to routine state surveillance, phone taps, imprisonment and censorship so intense that independent papers could not publish on a daily basis. Even photos of opposition leader and Nobel Peace laureate Aung San Suu Kyi were barred.

President Thein Sein's elected government has significantly relaxed media controls since taking power in 2011, allowing reporters to print material that would have been unthinkable during the five previous decades of absolute military rule. The government closed the Information Ministry's censorship bureau, which was known as the Press Scrutiny and Registration Department.

The government would have had little trouble pushing the publishing bill through this week if it had wanted to. Though a few dozen opposition politicians won office in a by-election last year, the ruling party commands a great majority in Parliament.

The bill would bar publishers from printing articles that "oppose and violate" the military-drafted 2008 constitution and articles that could undermine "law and order and incite unrest."

It calls for up to six-month prison sentences for failing to register news publications with the government, and for the appointment of a new "registration official" who will be in charge of monitoring the media and issuing publishing licenses.

"This draft law is nothing but a mechanism to control the media," Kyaw Min Swe said.

"If passed in the current form, the draft law will essentially replace Burma's old censorship regime with a similarly repressive new one," said Shawn Crispin, Southeast Asia representative for the Committee to Protect Journalists. "We urge lawmakers to amend this draft in a way that protects, not restricts, press freedom."

Information Minister Aung Kyi has defended the draft bill, saying that since media censorship was abolished many new and "poisonous" publications have emerged.

He specifically referred to 46 publications that had run photographs that were "contrary to Myanmar's cultural norms," an apparent reference to scantily clad women that now appear regularly on magazine front pages. He also said there have been articles that "encouraged gambling" and others that had prompted complaints from a state-run Buddhist organization as going against Buddhist teachings.

The proposed law is "capable of decontaminating the poisoned printed matters without restricting freedom of the press," the state-run New Light of Myanmar newspaper quoted Aung Kyi as saying when he submitted the bill to Parliament on March 8.

Journalists, however, note that the proposed law could go well beyond enforcing social norms and block media from publishing material critical of the government.

The legislation would protect a constitution that among other things bars Suu Kyi from seeking the presidency in elections set for 2015. The constitution bars anyone from the presidency whose spouse, child or parent holds foreign citizenship, a clause widely criticized as being tailored for Suu Kyi because her late husband was British, and her two sons hold British nationality.

Veteran journalist Win Tin, an 83-year-old former political prisoner, said the proposed media law would inevitably lead to self-censorship.

"Journalists will be too cautious to write stories about (proposed) amendments to the constitution," Win Tin said. "It could be construed as opposing the constitution."

After the bill was submitted, the Press Council, a government-formed group made up of journalists and government appointees, issued a statement calling for the parliamentary debate to be delayed until an amended version of the law can be drafted with input from media organizations.

Aung Kyi will meet Saturday with members of the council, which is drafting a separate press law that it says will protect journalists' rights.

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Associated Press Writer Jocelyn Gecker contributed to this report from Bangkok.

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The Ticker

Gas spikes prices

A spike in gas prices drove a measure of U.S. consumer costs up in February by the most in more than three years. But outside the gain in fuel costs, inflation was mostly modest.

The consumer price index increased a seasonally adjusted 0.7 percent last month from January, the Labor Department said. It was the biggest monthly rise since June 2009.

Still, three-fourths of the increase in the index reflected a 9.1 percent surge in gas prices. That was also the largest monthly gain since June 2009. Gas prices had fallen in the previous four months. Since last month's increase gas prices have started to decline again.

TOMORROW

• The Boston Redevelopment Authority holds a community meeting for a convention center hotel project on D Street in South Boston.
• Moscow government officials and KPMG host concluding presentations of their "Destination Moscow Roadshow 2013" at the InterContinental Hotel in Boston.

TUESDAY

• The Commerce Department releases housing starts for February.
• Federal Reserve policymakers meet to discuss interest rates.

WEDNESDAY

• FedEx and Oracle report quarterly financial results. 
• Fed Chairman Ben Bernanke holds a news conference on interest rates and an economic forecast.

THURSDAY

• Massachusetts releases the unemployment report for February.
• Royal Dutch Shell CEO Peter Voser addresses the Boston College Chief Executives Club of Boston during a luncheon at the Boston Harbor Hotel.
• The National Association of Realtors releases existing home sales for February.
• Nike reports quarterly financial results.

FRIDAY

• Tiffany & Co. reports quarterly financial results.

THE SHUFFLE

• Cape Cod Biofuels has hired Ed Miles, left, as vice president of business development. Miles previously served as director of sales for the eastern New England region at Baker Commodities, and vice president of sales and marketing for North Carolina-based EcoPlus.
• RBS Citizens Financial Group Inc. has hired John Rosenfeld as executive vice president for everyday banking. Rosenfeld joins RBSCFG from TD Bank, where he had headed up retail deposit and payment products.

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