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Boston TV stations pull out the stops

Written By Unknown on Sabtu, 20 April 2013 | 20.25

A tension-filled day gave way to a night of celebration, relief and even revelry on the streets of Watertown as a suspected Boston Marathon bomber was apprehended and the local TV stations — WBZ, WCVB, WFXT, WHDH and NECN — tracked every moment.

As breaking news banners flashed updates on suspect Dzhokhar Tsarnaev's location — a boat in a Franklin Street backyard — stations kept their cameras trained on the neighborhood as darkness fell. After it was confirmed that Tsarnaev was in custody and on the way to a local hospital, cheers and applause erupted from the crowd gathered near the site.

As the suspected terrorist remained on the loose for much of yesterday and with much of the Boston area under unprecedented lockdown, local TV stations responded with unparalleled wall-to-wall coverage.

Probably no one had a more harrowing day than WHDH's Adam Williams, who arrived with his cameraman in Watertown early yesterday morning and found himself pinned down as the two brothers, Boston Marathon bombing suspects Tamerlan and Dzhokhar Tsarnaev, exchanged about 200 rounds of gunfire with police.

"It was not a good position to be in," Williams stoically told viewers last night.

The most oft-repeated footage was supplied by a viewer: Against a backdrop of flashing blue lights, the Watertown shootout with rat-a-tat gunfire that left Tamerlan dead and an MBTA police officer critically injured seemed to last hours.

The stations scrambled to mute the raw audio, but the video was terrifying.

With long stretches of time to fill, the stations worked overtime to profile the alleged killers and convey a sense of the Boston area under what seemed like martial law.

"The entire city looked like a scene out of 'I Am Legend,' " commented David Gerzof Richard, professor of social media and marketing at Emerson College, referring to the 2007 post-apocalyptic film starring Will Smith. "Empty streets. It's the first time I can ever remember an entire city that was shut down."

T.J. Winick, former WBZ and ABC news reporter and now a media relations consultant in the Boston area, gave high marks to the stations' efforts.

"These are scenarios you can work 30 years in local news and never be put in," he said. "I think the reporters and the anchors did an incredible job keeping their composure and providing the very latest information" under trying circumstances.

Part of every local station's mission is public service, and that often gets overlooked, Winick said, but here the news desks kept the public updated on the search for a dangerous suspect in real time.

Because of their dogged efforts, "You'd have to be living in a cave not to know what's going on."


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Charming Colonial in Braintree makes splash

This attractive single-family Colonial in Braintree Highlands has a classic elegance with a nicely landscaped yard and an in-ground heated pool with a cabana.

Built in 1998, the well-maintained three-bedroom house with a hip roof at 130 Catherine Drive has been updated several times by its current owners since 2007. Renovations include a central air-conditioning system, renovated master bathroom and all-new toilets, new high-efficiency burner and refinished oak floors. The 2,660-square-foot home, which was recently repainted outside and inside, is on the market for $639,900.

The house sits on a cul de sac at the end of a long driveway with an attached two-car garage and brick walkway. The exterior is blue clapboard with black shutters and white trim. The entrance has a widow's walk framed by a large Palladian window.

A grand two-story ceramic-tiled entry foyer has a large brass chandelier above and two closets, one for storage and the other for coats.

To the right of the foyer is a formal dining room with oak floors, crown molding, 8-over-8 windows and a built-in mantel.

On the other side of the foyer is an open living

dining area with oak floors, 8-over-8 windows and a ceramic-tiled wood-burning fireplace. There are glass doors from the dining area out to a rear deck and down to a granite patio with a heated in-ground pool enclosed by a wrought-iron fence. The pool's heater and propane tanks were recently replaced and there's a cabana at one end.

Back inside, the stylish kitchen features 26 white bargeboard-faced cabinets and built-in racks. There's a center island with grayish granite counters and a built-in electric range. All-white appliances include a cabinet-front Amana side-by-side refrigerator, built-in General Electric wall oven and new microwave and a Bosch dishwasher.

Off the kitchen is a half bathroom with gray ceramic tile floors, a linen closet and a cabinet that holds a washer

dryer hookup with shelving above. Adjacent is direct access to the home's two-car attached garage.

The stairway and second-floor landing that overlooks the foyer have paneled wainscoting.

There are three bedrooms on the second floor, including a master suite. The carpeted master bedroom has four 8-over-8 windows and a fan

light overhead. There's a deep walk-in closet with a built-in shelving system. The en-suite master bathroom, renovated last year, has beige ceramic tile floors and tile that surrounds a raised whirlpool bathtub. There's a separate glass-doored Fiberglas shower, a granite-topped double-sink vanity and a linen closet.

There are two other carpeted bedrooms ideal for children. There's also a second full bathroom with a ceramic tile floor, a linen closet, a Corian-topped vanity and a one-piece Fiberglas tub and shower.

The finished basement has a carpeted media

family room with a big storage closet for games and toys. There's also a carpeted home office with a built-in added by the current owner with desk space for two and cabinets above. And there's even a full bathroom in the basement, with access to the outdoor pool through a door.

Pros:

 Stylish kitchen with bargeboard-faced white cabinets and gray granite counters

 Open living

dining area with wood fireplace and glass doors out to in-ground pool with granite patio

 Master bedroom suite has large walk-in closet and newly renovated bathroom

Cons:

Fiberglas showers in bathrooms

 Some appliances and tile finishes are average grade


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Kia Sorento rebuild kicks it

Well, the Koreans just keep doing the unexpected and consumers are benefiting from it.

The 2014 Kia Sorento SX AWD SUV has had a mid-cycle rebuild and I think this may now be a better car than its popular brand mate the Hyundai Santa Fe for about the same money.

The Sorento had been taking a bit of a beating from consumers and critics for its poor handling and modest adornments. Hyundai/Kia listened and responded loudly. With a new engine, rebuilt suspension and more refinement in style and substance, you've got a contender for the your crossover dollar.

In the past few years, Hyundai/Kia's hallmark has been bang for your buck and the '14 Sorento fills the SUV side of the equation nicely. Starting at base MSRP of $24,900, the Sorento offers a high-quality and stylish interior with the easy-to-use and intuitive UVO infotainment system. It has sleek textured interior panels with some soft touches and wood accents along with comfortable and high-quality leather-trimmed seats. Our AWD SX is not quite top of the line, but is jam-packed with goodies.

The $36,700 SX package includes the panoramic sunroof, blind-spot monitoring, backup camera and sonar warning, power folding side-view mirrors, three driving modes, along with features you'd expect such as cruise control and power lift gate.

Under the sheet metal is where Kia has made significant changes.

Earlier Hyundai/Kia cars we've tested have had vague, underwhelming steering and suspensions.

This extensive re-engineering of the 2014 chassis includes stiffening of the front suspension, adding larger rear suspension components and constructing a more rigid frame. Add in the new electric steering and all lead to better handling than earlier models.

Combine the 3.3 liter, 290-horsepower, V-6 engine and six-speed automatic transmission and you've got a really powerful crossover on your hands. The V-6 and AWD can be a bit thirsty, but only give up a couple of miles per gallon fewer than the base model, testing to about 18 in the city and 24 on the highway. I averaged 21 mpg, right in the middle of the range.

The V-6 provides plenty of power, brisk acceleration and a quiet ride. Whether it's a supermarket or dump run or a cruise along the highway, the new handling characteristics make this a comfortable car to drive. Pick your favorite from one of the three Flexsteer modes — comfort, sport or normal — and feel the responsive, taut command of the car missing in other models.

The SUV includes third row seating — the Mitsubishi Outlander is the only other in class to do so — but it robs from the cargo area. Although the Sorento is larger in all dimensions than its class rivals, the Honda CRV and Ford Escape, the third-row seats are still a snug fit. I preferred to keep them stowed and make use of the full deck space.

The simple-to-use and high-tech UVO infotainment center combines all your wireless connectivity and audio needs without endless drill-down menus. It works smartly with voice command and the sound system is excellent. The 8-inch navigation screen was easy on the eyes and a snap to use, too. It's a marked improvement over earlier models.

If you're worn out with the legion of bullet-shaped competitors in this class, then this may be your vehicle. The body styling is more traditionally truck-like and Kia has some nice tweaks with wrap-around lights and body accents.


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Automakers target Chinese buyers at Shanghai show

SHANGHAI — Global and Chinese automakers showcased family-friendly sedans and SUVs targeting coveted urban buyers at China's biggest auto show Saturday as competition intensifies in this huge but crowded market.

China's vehicle sales rose 13 percent in March, blistering growth by Western standards but down from 45 percent in 2009. With sales weak elsewhere, global companies that see China as a key part of their future are pouring money and technology into fighting for market share, squeezing each other and new but ambitious local automakers.

"It is a very, very competitive market," said Bob Socia, president of General Motors Co.'s China arm.

The Shanghai auto show, held in alternate years, has grown into one of the global industry's most prominent events, especially after China passed the United States in 2009 as the biggest auto market by number of vehicles sold.

Organizers say exhibitors at this year's show, which opens to the public after Saturday's press preview, will display more than 800 vehicles, from mass-market compacts to minivans to hand-built sports cars with price tags of more than $1 million.

GM is displaying 53 models from its Buick, Cadillac and Chevrolet units as well as its local Baojun and Wuling brands. GM says it will launch 17 new and refreshed models in China this year and wants to expand Cadillac's share of the country's booming luxury market.

Ford Motor Co. unveiled a new version of its Mondeo sedan and the sport model of its smaller Focus ST aimed at prosperous, family-conscious Chinese buyers. Marin Burela, the president of Ford's main Chinese joint venture, said the Mondeo is aimed at luring Chinese buyers with "affordable luxury."

The Mondeo "rivals vehicles priced well beyond this segment," Burela said.

Italy's Fiat SpA, trying to catch up after launching its first China venture just three years ago, unveiled a version of its Viaggio sedan and a SUV, the Freemont, based on the Dodge Journey. Fiat said the Viaggio, with a smaller 1.4-liter engine than models sold elsewhere, was its first vehicle designed for the China market.

China's auto sales last year topped 19 million. Industry analysts and automakers say they expect rapid growth to continue, rising to annual sales of as much as 32 million vehicles by 2020 — the equivalent of the United States and Europe combined.

"China really is in the infancy of industry development," said David Schoch, Ford's president for Asia and the Pacific. Ford expects 60 to 70 percent of its sales growth to come from the Asia-Pacific region in coming years, he said, "and most of that is driven by the China engine."

Schoch said Ford plans to double the size of its China dealership network to more than 800 outlets.

Despite rapid sales growth that has left Beijing, Shanghai and other major cities choked on traffic and smog, competition has been brutal, forcing fledgling Chinese automakers to merge in hopes of competing with bigger global rivals.

Ford's local partner, Chang'an Automotive Group, swallowed rivals Changhe and Hafei and a series of smaller producers. Shanghai Automotive Industries Corp., which assembles vehicles for GM and VW, absorbed Nanjing Automotive.

Still, the market is fragmented among more than 100 brands and some domestic producers have sales of just 1,000 to 2,000 vehicles a year.

Germany's Volkswagen AG is China's biggest single auto brand with a 14 percent market share. GM is second with 7 percent for cars, plus its truck and minivan sales. Ford, Honda Motor Co. and leading Chinese brands such as Chery Inc. and Geely Holding Group, which owns Sweden's Volvo Cars, have shares of 2 to 4 percent.

The squeeze on independent Chinese brands has worsened as global automakers target their core low-cost market with new economy models.

Chinese automakers were stunned last year when GM unveiled a version of its Sail sedan priced at just 56,800 yuan ($9,100). GM says it also exported more than 60,000 Chinese-manufactured Sails last year to other developing markets.

Chery's sales plunged 10 percent last year. It responded last week by announcing an overhaul that will eliminate two of its three brands and slim down its product range from 20 models to 10 or 11.

"It's already survival of the fittest," said analyst Namrita Chow of IHS Automotive.

One Chinese brand that has bucked the trend is Great Wall Motors Co. Its profit jumped 65 percent last year, driven by sales of its popular SUVs, which are exported to 80 countries including Australia, Italy and Russia.

On Saturday, Great Wall unveiled two new SUVs, the H6 and the H7, as well as a sedan and a pickup.

On the strength of those new products, CEO Wang Fengying said this year's sales might rise 30 percent.

"We put a lot into research and development — really, a lot," said Wang, the only female chief executive of a major Chinese auto brand. "We hope we know just what customers want and trust."

Also Saturday, Japanese automakers that are struggling to come back from a sales slump displayed models they said were restyled to suit Chinese tastes.

Toyota Motor Co. showed a Yaris sedan and other models it said were modified for China after market research. Honda and Nissan Motor Co., which have hired Chinese designers, showed models they said were created to meet local demand.

Sales of Japanese brands plunged last year during a dispute between Beijing and Tokyo over a group of uninhabited islands in the East China Sea and continue to wane even though the tensions have abated.

Japanese automakers suffered a combined 17.8 percent sales decline in March, according to Alec Gutierrez, senior analyst at Kelley Blue Book.

Speaking at the show, Toyota vice chairman Takeshi Uchiyamada, stressed friendship with China. He noted that Toyota has produced its hybrid Prius in China since 2005, the first manufacturing site for the vehicle outside Japan.

"For me, China is a cherished neighbor," he said.

China's failure to follow its neighbors Japan and South Korea in creating at least one global auto brand has frustrated communist leaders.

They see auto manufacturing as an industry that will create higher-paid jobs in fields from electronics to chemicals. They have spent two decades giving producers subsidies and other help.

Despite that, industry analysts say China is years away from creating a globally competitive brand.

Already, a handful of foreign automakers including VW and GM are developing such a commanding market position that they will be hard to dislodge, according to Yale Zhang, managing director of Automotive Foresight, a research firm.

Five years ago, eight automakers had vehicles among China's 10 most popular, according to Zhang. Last year, the Top 10 group had shrunk to just three brands — VW, GM and the Korean duopoly of Hyundai and Kia.

"The next five years really will be the last window of opportunity for local car makers" to develop competitive brands, said Zhang.

"Only one or two probably will be successful," he said. "Most of them will really see serious trouble within five years."

___

AP Business Writer Yuri Kageyama and AP researcher Fu Ting contributed.


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Iran seeks to export oil to North Korea

TEHRAN, Iran — Iran's oil ministry says the country is considering exporting oil to North Korea as a way to improve its battered economy.

The official IRNA news agency quoted on Saturday Oil Minister Rostam Ghasemi as saying talks are underway between Tehran and Pyongyang on oil exports.

An oil deal would bring the two nations deeply at odds with the U.S. and the West closer together. In September, they signed a scientific and technological cooperation agreement. A delegation from North Korea's oil ministry is currently visiting Iran.

Iranian and North Korean officials have said in the past that their nations are in "one trench" in the confrontation with Western powers.

But Iran has denied a U.N. report saying the two have exchanged ballistic missiles, components and technology in violation of U.N. sanctions.


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Experts: Mass. economy won̢۪t sprout in spring

Written By Unknown on Jumat, 19 April 2013 | 20.25

The Bay State could soon hit a "spring stall" when it comes to recovery and growth as federal budget cuts and European economic weakness threaten to choke off job opportunities, experts said yesterday.

"I don't see a whole lot of oomph out there to get job growth in Massachusetts," said Robert Nakosteen, an economics professor at the University of Massachusetts Amherst's Isenberg School of Management.

Massachusetts lost an estimated 5,500 jobs last month even as the state's unemployment rate dipped a tenth of a point to 6.4 percent, according to the Executive Office of Labor and Workforce Development.

"There's nothing inherent about spring except this one has the sequester and the payroll tax increase and continuing uncertainty about the debt limit and budget deals," Nakosteen said. "All of those extract a price."

Nakosteen added the state could expect to see "fairly flat" job growth for the duration of the year as residents start to feel the pinch of automatic federal budget cuts, which will also cut unemployment insurance assistance by nearly 13 percent for close to 45,000 residents collecting benefits for more than 26 weeks.

Before March's jobs plunge, Massachusetts had only added 500 jobs in February.

While the state's education and health services, and leisure and hospitality sectors added 2,200 and 300 jobs, respectively, last month, Massachusetts' professional, scientific and business services sector took a big hit — losing 3,400 jobs in March.

"That sector has been growing quite strongly in recent years, fueled by the innovation economy here," said Michael Goodman, a public policy professor at the University of Massachusetts Dartmouth, who called March's jobs figures "clearly disappointing."

"The decline in professional and business services is consistent with what one would expect from the kinds of cuts that have been taking place at the federal level," he said.

Northeastern University economist Alan Clayton-Matthews added that unrest in Europe has continued to be "a drag" on the state's economy.

"I expect to see slower job growth over the next several months, but I do not expect to see continued job losses of this magnitude," he said.


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UMass cites Harvard flaw

News that a UMass Amherst graduate student had uncovered significant flaws in an influential paper by two eminent Harvard University economists roiled the profession this week, raising questions about the policies it influences at home and abroad.

Thomas Herndon, a 28-year-old doctoral student in economics, discovered what he saw as glaring omissions in the spreadsheets used for Carmen Reinhart and Kenneth Rogoff's 2010 study, which had asserted that economic growth slows sharply when government debt exceeds 90 percent of annual economic output.

The study was widely cited by policymakers worldwide, including former Republican vice presidential candidate Paul Ryan, to justify cutting spending. So when a working paper by Herndon and two of his professors, Michael Ash and Robert Pollin, pointing out the errors was posted on the UMass Political Economy Research Institute website this week, it quickly went viral.

"It really indicates the profession needs to question its own methods and standards," said Barbara Alexander, an economist and visiting lecturer at Babson College. "Published research needs to be audited and cross-checked, and the data needs to be freely available. ... It's really disturbing because the results in this case have been used to support policies that have been extremely painful for many people in this country and around the world."

In a joint statement, Reinhart and Rogoff said they were "grateful" to Herndon, Ash and Pollin for pointing out a "coding error," but they maintained there is a correlation between high government debt and slow economic growth.

"It is sobering that such an error slipped into one of our papers despite our best efforts to be consistently careful. We will redouble our efforts to avoid such errors in the future," they said. "We do not, however, believe this regrettable slip affects in any significant way the central message of the paper or that in our subsequent work."

Herndon and his professors disagree with that conclusion.

"People argue that spending cuts are a bitter medicine you have to take to get out of a recession," he said, "but we provide strong evidence that disputes that."

Ash, a professor of economics and public policy, said it is "quite likely" that high public debt is not a cause of poor economic performance, but an effect.


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The Ticker

Merrill Lynch fined $250G

Merrill Lynch has been fined $250,000 in connection with improperly selling more than $39 million in unregistered securities, including auction-rate securities to two Massachusetts cooperative banks in violation of federal law, Secretary of the Commonwealth William F. Galvin said.

According to Galvin's complaint, the securities were sold by a Boston branch of Merrill Lynch that did not follow procedures for determining if the banks were qualified and failed to train its personnel on its own policies and procedures

Winthrop Square garage to close

The Boston Redevelopment Authority will close the Winthrop Square Parking Garage indefinitely at midnight after identifying infrastructure issues with the 240 Devonshire St. facility. No vehicles will be allowed to enter the garage after 3 p.m.

THE SHUFFLE

L Acella Construction Corp. of Norwell has promoted Ryan Klebes, left, to the position of senior project manager. Klebes first joined the company in 2003 as a project manager, and was previously an assistant project manager at Lee Kennedy Construction in Boston.


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Poll: Public pessimism on economy is increasing

WASHINGTON — For the third year in a row, the nation's economic recovery has hit a springtime soft spot. Reflecting that weakness, only 1 in 4 Americans now expects his or her own financial situation to improve over the next year, a new Associated Press-GfK poll shows.

The sour mood is undermining support for President Barack Obama's economic stewardship and for government in general.

The poll shows that just 46 percent of Americans approve of Obama's handling of the economy while 52 percent disapprove. That's a negative turn from an even split last September — ahead of Obama's November re-election victory — when 49 percent approved and 48 percent disapproved.

Just 7 percent of Americans said they trust the government in Washington to do what is right "just about always," the AP-GfK poll found. Fourteen percent trust it "most" of the time and two-thirds trust the federal government just "some of the time"; 11 percent say they never do.

The downbeat public attitudes registered in the survey coincide with several dour economic reports showing recent slowdowns in gains in hiring, consumer retail spending, manufacturing activity and economic growth. Automatic government spending cuts, which are starting to kick in, also may be contributing to the current sluggishness and increased wariness on the part of both shoppers and employers.

Overall, 25 percent of those in the poll describe the nation's economy as good, 59 percent as poor — similar to a January AP-GfK poll.

Respondents split on whether this was a "good time" to make major purchases such as furniture and electronic devices, with 31 percent agreeing it was, 38 percent calling it a "bad time" and 25 percent remaining neutral.

The economy's recovery from the severe 2007-2009 recession has been slow and uneven. Even so, most economic forecasts see continued economic growth ahead, even if it is sluggish and accompanied by only slowly improving levels of joblessness. Another recession in the near future is not being forecast.

In the new poll, few say they saw much improvement in the economy in the last month. Just 21 percent say things have gotten better, 17 percent say they've gotten worse and 60 percent thought the economy "stayed about the same." And the public is split on whether things will get better anytime soon, with 31 percent saying the national economy will improve in the next year, 33 percent saying it will hold steady and 33 percent saying it will get worse. Further, about 4 in 10 expect the nation's unemployment rate to climb in the next year.

And the public's outlook for its own financial future is at its worst point in three years. Just 26 percent think their household economic well-being will improve over the next year, 50 percent think it will stay the same and 22 percent expect it to worsen.

About 27 percent of those with incomes under $50,000 are the most likely to expect things for them personally to get worse in the next year compared with fewer than 2 in 10 among those with higher incomes.

Democrats, who typically rate the economy better under the present Democratic president than do Republicans, have become less optimistic about their financial prospects since January. Then, 41 percent of Democrats thought their finances would improve in the next year while only 30 percent feel that way now.

Jeremy Hammond, 33, of Queensbury, N.Y., a Web programmer, says Congress should focus on "the incredible debt and lack of spending control." For instance, he said, it's absurd for Congress to try to force the Postal Service to continue Saturday mail delivery — an effort that has so far failed — when the agency says, "We can't afford it.' Hammond, who considers himself a political independent, said he voted for Obama in 2008 but not in 2012.

Obama's overall job approval in the poll is at its lowest point since his re-election, at 50 percent, with 47 percent disapproving. His approval among Republicans is just 10 percent; among independents, 49 percent disapprove.

But, if it's any solace to the president and his supporters, Congress fared even worse. Thirty-seven percent approve of the performance of congressional Democrats, while 57 percent disapprove. For congressional Republicans, 27 percent approved of their performance and 67 percent disapproved.

The Associated Press-GfK Poll was conducted April 11-15 by GfK Roper Public Affairs & Corporate Communications. It involved landline and cellphone interviews with 1,004 adults nationwide. Results for the full sample have a margin of error of plus or minus 3.9 percentage points. It is larger for subgroups.

___

AP News Survey Specialist Dennis Junius and writer Charles Babington contributed to this report.

___

Follow Tom Raum on Twitter: http://www.twitter.com/tomraum

___

Online:

http://www.ap-gfkpoll.com


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Reports: Boeing Dreamliner could fly next month

WASHINGTON — Published reports say Boeing's grounded 787 jetliners could soon be flying again.

The Wall Street Journal reports that the Federal Aviation Administration is set to approve Boeing's fix for the ion-lithium batteries. The 787 Dreamliner has been grounded since mid-January because of smoldering batteries that in one case caused a serious fire.

The Journal says the FAA is expected to announce Friday that Boeing's redesigned batteries are safe. The fix includes more heat insulation and a battery box designed to vent any hot gases from the batteries outside the planes.

There was no immediate comment from the FAA and a Boeing spokesman declined to comment on the report.

The New York Times, which also reported the development, says the aircraft could be back in service next month.


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Toyota's hybrid vehicle sales pass 5 million

Written By Unknown on Rabu, 17 April 2013 | 20.25

TOKYO — Toyota's global sales of gasoline-electric hybrid vehicles have surpassed 5 million in a milestone for a technology that was initially greeted with skepticism.

The Japanese automaker, which said Wednesday it had sold 5.125 million hybrid vehicles as of the end of March, started selling the Prius, the world's first mass produced hybrid passenger car, in 1997. Gas-electric hybrids deliver fuel efficiency by switching back and forth between a gasoline engine and electric motor depending on speed and other driving conditions, and recharges as it travels.

"What an achievement for this technology to have grown this widespread," said Vice Chairman Takeshi Uchiyamada, known as "the father of the Prius" for having led the team that developed the hit model. "I believe there is a lot more room for this technology to grow," he told reporters at Toyota's Tokyo office Wednesday.

Toyota's hybrid vehicles now account for 14 percent of its global sales and 40 percent of its sales in Japan. Toyota Motor Corp. sells 19 hybrid passenger car models and one plug-in hybrid, and is promising 18 new hybrids from now through December 2015.

Uchiyamada recalled that expectations had been low for the hybrid to catch on.

The production plan had called for barely 1,000 cars a month, he said, and he had to beg to raise it to that from 300 a month. But when the Prius was announced, people were flocking to dealers in Japan to place their orders. And there wasn't even a sample model to check out yet in the showrooms.

When the Prius was launched in the U.S., it was again met with enthusiasm, by people Uchiyamada called "opinion leaders," including Hollywood stars.

It was almost all too good to be true, he recalled, as marketing experts had warned that Americans would likely not want a car like the Prius because gas prices were then relatively low.

Since then, gas prices have skyrocketed and nations around the world are grappling with pollution and global warming.

After the March 2011 quake, tsunami and nuclear disasters in Japan, hybrids found a new use, helping deliver electricity during blackouts in disaster zones.

The hybrid has been so successful the only obstacle for Toyota may be that many rivals are in the game now.

"Toyota has led the world on cost-effective fuel-saving hybrid technology for more than a decade, but the competition is really heating up," said David Friedman, senior engineer and deputy director of the clean vehicles program at the Union of Concerned Scientists in Washington, D.C.

The organization thinks that Honda Motor Co., Toyota's Japanese rival, overall offers greener cars, despite Toyota's hybrid success.

"To stay ahead of the pack on hybrids," he said, "they will need to focus their hybrids on boosting fuel economy further and cutting costs, while picking up the pace in innovation in their conventional and electric cars."

The big growth in auto sales is coming these days from emerging markets, where hybrids have yet to catch on because of higher prices compared to gasoline-powered autos.

Uchiyamada acknowledged that costs will have to come down. But he said such nations were also growing concerned about energy efficiency and emissions and they need to offer incentives, or subsidies, for consumers so they can buy hybrids.

"Hybrids have now become a core technology," he said.

___

Follow Yuri Kageyama on Twitter at www.twitter.com/yurikageyama


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American expects flights to return to normal

DALLAS — American Airlines is promising to run a near-normal operation on Wednesday, and that would be just fine for the tens of thousands of passengers who were stranded by a mammoth technology meltdown at the nation's third-biggest airline.

On Tuesday, American and sister airline American Eagle canceled 970 flights and delayed at least 1,068 more by early evening, according to flight-tracking service FlightAware.com.

That means American and Eagle canceled or delayed nearly two-thirds of their scheduled flights after they lost access to a computer system that's used for everything from issuing boarding passes to determining how much fuel to pump into the plane.

It was a public-relations nightmare for American, which is preparing to merge with US Airways and become the world's biggest carrier. Passengers took to social media sites to criticize the airline, which for hours could only apologize and say that it was trying to fix the problem.

The man who will lead American in a few months, US Airways CEO Doug Parker, has said he would prefer to convert his planes and employees to American's computer system rather than the other way around.

US Airways declined to comment on whether Tuesday's breakdown would cause Parker to rethink his plans.

The computer outage began snarling operations around midmorning. Eventually the Federal Aviation Administration issued a so-called ground stop for American Airlines jets around the country.

Flights already in the air were allowed to continue to their destinations, but planes on the ground from coast to coast could not take off. And travelers could do little to get back in the air until the computer system was restored.

By late afternoon, American resumed international flights and those from its major hub airports. It scrambled during the evening to put planes and crews in position to get off to a good start on Wednesday morning.

"Despite the magnitude of today's disruption, we are pleased to report that we expect our operation to run normally with only a small number of flight cancellations" on Wednesday, said Andrea Huguely, a spokeswoman for American. She said American would add flights to accommodate stranded passengers.

American blamed the outage on a loss of access to computer networks that are used for flight reservations and many other functions. Airlines commonly rely on such systems to track passengers and bags, monitor who boards planes, and update flight schedules and gate assignments. The computers are also used to file flight plans and tell employees which seats should be filled to ensure that the plane is properly balanced.

American's system is hosted by Sabre Holdings, a one-time division of American that was spun off into a separate travel-reservations technology company. American said the outage wasn't Sabre's fault, and other airlines that use Sabre didn't experience problems.

At airports, customers whose flights were canceled couldn't rebook on a later flight. Passengers already at the airport were stuck in long lines or killed time in gate areas.

"Tensions are high. A lot of people are getting mad. I've seen several yelling at the American agents," said Julie Burch, a business-meeting speaker who was stuck at Dallas-Fort Worth International Airport waiting for a flight to Denver. "Nobody can tell us anything."

Terry Anzur, a TV news consultant from Los Angeles who was also stranded in Dallas, said American Airlines gate employees were doing everything the old-fashioned, manual way because their computers were useless.

"No one at the counter can do anything. They can't check people in," Anzur said. "The airline is at a dead halt."

Theoretically, an airline could do the same work as the reservation system manually for any one flight. But doing it for hundreds of flights isn't practical. American and Eagle operate about 3,300 flights a day.

Now, if the reservations systems go down, "most airlines would be pretty much without the ability to fly more than a very limited number of flights," said Scott Nason, American's former technology chief and now a consultant.

Nason said airlines find and fix the problem, but the next time something else causes an outage. One time, a possum chewed through a cable in Tulsa, Okla., bringing down the whole system. Another time, a worker in the airline's data center used a metal tool instead of an insulated, rubber-coated one — a short-circuit crashed much of the system, he said.

Brent Bowen, a professor of aviation technology at Purdue University, said massive system failures are inevitable as airlines grow increasingly reliant on technology.

"As those systems get bigger and more complex, at some point you're going to have a systemic failure," Bowen said. He added that financially strapped airlines may have underinvested in technology during the past decade, making the computer systems more vulnerable. AMR has lost more than $10 billion since 2001 and filed for bankruptcy protection in late 2011.

American's problems on Tuesday were reminiscent of what United Airlines passengers endured for several days last year. After merging with Continental, United experienced computer glitches in the combined reservation system. On one day in August, 580 United flights were delayed, and its website was shut down for two hours. Another outage in November delayed 636 flights.

The problems prompted an apology from United Continental Holdings Inc. CEO Jeff Smisek, who acknowledged that his airline had frustrated customers and would need to work to win them back.

American began making amends by offering to book people who needed to travel Tuesday on other airlines and pay for the fare difference. For those who wanted to delay their trips, American offered refunds or waivers from the usual fee for changing a reservation.

But for several hours, the airline wasn't able to process those changes and refunds — because the computers were down.

___

Associated Press Airlines Writers Scott Mayerowitz in New York and Joshua Freed in Minneapolis contributed to this report.

___

David Koenig can be reached at http://www.twitter.com/airlinewriter


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Global markets mostly drop amid growth concerns

LONDON — Stock markets mostly fell on Wednesday as upbeat U.S. corporate earnings reports failed to ease investors' concerns over fading global economic growth.

Economic indicators have been mostly negative in recent weeks, particularly in Europe. Investor confidence in Germany has fallen, a sign of growing fears over the resilience of Europe's largest economy.

The International Monetary Fund on Tuesday lowered its outlook for the world economy this year, predicting that government spending cuts will slow U.S. growth and keep the euro currency countries in recession.

But analysts said the biggest reason for the market's drop was probably speculation that Germany could suffer a credit rating downgrade. Though several economists said it was unlikely, the rumor seemed to have been enough to batter European stocks.

By midday in Europe, Germany's DAX was down 1.2 percent to 7,588.69 while France's CAC-40 lost 1 percent to 3,652.17. The euro was down 0.1 percent against the dollar to $1.3156.

"Once again, fear rather than optimism is the overriding factor affecting European traders, and early market rumors of a German debt downgrade have seen the DAX lead the way lower," said Alastair McCaig, market analyst at IG.

In Britain, the FTSE 100 was 0.5 percent lower at 6,271.89 after Tesco, the country's largest supermarket operator, reported a sharp drop in profits. The company blamed costs at its Fresh & Easy U.S. operations, which it is trying to sell. It also sounded negative about Asian markets, announcing it would pull out of Japan and take a more measured approach to growth in China.

Labor market figures for the U.K. were also negative, showing unemployment rose by 70,000 in the three months to February. The number suggests the British economy is unlikely to stage a significant recovery in coming months.

Wall Street was headed for losses as well. Dow Jones industrial futures were down 0.3 percent to 14,635 while the broader S&P 500 futures shed 0.5 percent to 1,561.70.

Looking ahead, investors will keep an eye on the Federal Reserve's Beige Book, a regular report that is expected to show that activity in the world's largest economy is still only gradual.

Corporate earnings reports, which have been one of the few bright spots for markets so far this week, will also be in focus. Bank of America, American Express and eBay are among the bigger names to report earnings on Wednesday.

Earlier, Asian stock markets mostly closed higher thanks to gains in the U.S. the day before.

Coca-Cola, the world's biggest beverage maker, reported first-quarter earnings that beat Wall Street forecasts. As of Monday, 34 companies in the Standard & Poor's 500 had reported earnings and 20 had exceeded analysts' expectations.

U.S. home construction numbers were also positive, with builders starting construction on 1 million homes last month, the highest level since June 2008.

Japan's Nikkei 225 rose 1.2 percent to 13,382.89 as the yen weakened again, helping its many exporting companies. The dollar was up 0.4 percent to 97.96 yen.

Hong Kong's Hang Seng fell 0.5 percent to 21,569.67. Australia's S&P/ASX 200 advanced 1.1 percent to 5,004.60. Benchmarks in Indonesia, Malaysia and the Philippines also rose. South Korea's Kospi rose less than 0.1 percent to 1,923.84.

Benchmark oil for May delivery was down 79 cents at $87.93 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 1 cent on Tuesday.

___

Pamela Sampson in Bangkok contributed to this report.


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IRS grants extension to marathon victims

BOSTON — The Internal Revenue Service has announced that is giving Boston area taxpayers as well as other people affected by the Boston Marathon explosions a three-month filing and payment extension.

The relief applies to taxpayers who live in Boston and the other communities of Suffolk County, as well as victims, their families, first responders, and others whose tax preparers were affected.

The IRS will not assess filing and payment penalties as long as returns are filed and payments made by July 15. By law, interest still applies.

The extension applies automatically to anyone living in Suffolk County. Those from outside the county who think they may be eligible for the extension need to contact the IRS.

The state has already extended the deadline for residents to pay state taxes.


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5 French execs in breast implant scandal on trial

MARSEILLE, France — Hundreds of women who received faulty breast implants gathered Wednesday in a makeshift courthouse in the south of France for the fraud trial of five executives accused of using cheap industrial silicone to fill tens of thousands of implants that were sold around the world.

Jean-Claude Mas, who founded and ran implant-maker Poly Implant Prothese, is among those on trial in the southern city of Marseille. The now-defunct company had claimed its factory in France exported to more than 60 countries and was one of the world's leading implant makers.

The implants, which officials say are prone to rupture and leaking, were not sold in the United States, but more than 125,000 women worldwide received them until sales ended in March 2010. Of those, more than 5,000 are joining the trial, saying the executives misled them into believing the implants were safe.

Mas' lawyers said the number of women listed in the case as victims is the largest in French judicial history and said the trial was too unwieldy to continue. The packed hearing room had six large-screen televisions placed at even intervals to allow even those at the back to see, and judges frequently admonished spectators into silence.

"He didn't have to be present — he could have said he was sick, which he is," said Yves Haddad, Mas' lawyer. "He was ready to be here and to answer questions, and thinking about those who joined the case, even if it seems odd to some."

Nathalie De Michel, who received the implants, said Wednesday she wanted Mas to acknowledge responsibility.

"We have the impression that he doesn't care. I want him at least to recognize that he made mistakes. When you fight against cancer, you fight to survive, and if after they put some garbage in your body, what's the point of fighting for life?"

Mas declined comment as he entered the convention center — which was turned into a courthouse to host all those participating in the trial — in order to face the women for the first time. He has said he never intended harm and his lawyers said the company's failure ruined him financially — a claim that drew angry murmurs from the crowd on Wednesday.

The vast majority of the implants were for cosmetic reasons. The rest were for breast reconstruction, often following cancer surgery. Within France, about a quarter of the implants malfunctioned, most by rupturing and leaking silicone, according to a government tally released earlier this month.

Doctors and scientists who have followed the case say medical complications stemming from the ruptures and leaks appear to be limited even when the implants rupture: rashes and localized pain were the most common complaints. But lawyers for the women — more than 300 from around the world who joined the month-long trial — say the full effects will not be known for years to come.

Nathalie Lozano, a Colombian lawyer who said she represents 1,500 women she says have had problems with the PIP implants, said she came to Marseille to seek justice for clients she says lack the resources to pay for follow-up care.

"I could name very difficult cases of women who don't even have means to undergo exams and know what state their implants are in," she said. "They know that they are dangerous implants and nevertheless they don't even have a way to know if their implants are broken inside their body, if eventually this substance will leak into their body."

The implants in question were not sold in the U.S., where concerns about silicone gel implants overall led to a 14-year ban on their use. Silicone implants were brought back to the market in 2006 after research ruled out cancer, lupus and some other concerns, but the FDA still cautions that implants of any kind can rupture or cause other problems.

The French government recommended that women have their PIP implants removed as a precaution, and about a third of Frenchwomen who had the implants did so, according to the April 2013 government report.

In Britain, the government left the choice up to women and their doctors, but recommended that the implants be removed if there was a sign of rupture.

The company ultimately went out of business, and regulators across Europe began demanding calls for tighter oversight of medical devices.

According to various government estimates, over 42,000 women in Britain received the implants, more than 30,000 in France, 25,000 in Brazil and 15,000 in Colombia. Venezuela, where PIP implants were hugely popular, offered free removals for the estimated 16,000 women with the implants, as did France.

Mas, his deputy Claude Couty, the quality director Hannelore Font, technical director Loic Gossart, and products chief Thierry Brinon face the possibility of five years in prison if convicted.

"Women have lost their jobs because of him, their health because of him," said Joelle Manighetti, a French woman who received the implants after breast cancer surgery and blogs about her experiences. "With the way he has treated us from the beginning, I'm not expecting much from him."

___

Associated Press writer Libardo Cardona contributed from Bogota, Colombia.

___

Follow Lori Hinnant at https://twitter.com/lhinnant


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Gun background check deal in jeopardy in Senate

Written By Unknown on Selasa, 16 April 2013 | 20.25

WASHINGTON — A bipartisan proposal to expand background checks to more gun buyers seemed in jeopardy Monday as a growing number of Republican senators expressed opposition to the proposal, perhaps enough to derail it. But there was plenty of time for lobbying and deal-making to affect the outcome, and the sponsors seemed willing to consider carving out at least one exemption in an effort to drum up votes.

The White House said President Barack Obama was calling lawmakers, as both sides hunted support for a nail-biting showdown.

As of Monday evening, some senators were saying the vote now appeared likely late this week, rather than midweek as top Democrats have hoped. Such a delay would give both sides more time to find support.

"The game hasn't even started yet, let alone over," said Sen. Joe Manchin, D-W.Va., who reached a background check compromise last week with Sen. Patrick Toomey, R-Pa., on which the Senate was preparing to vote.

In one sign of the bargaining underway, Manchin and Toomey seemed willing to consider a change to their deal that would exempt gun buyers from background checks who live hundreds of miles from licensed firearms dealers, said one Senate aide.

The change might help win support from senators from Alaska and perhaps North Dakota, said the aide, who spoke on condition of anonymity to describe private discussions.

At stake is what has become the heart of this year's gun control drive in response to December's killing of children and staff at an elementary school in Newtown, Conn. Supporters consider a broadening of the buyers subjected to background checks to be the most effective step lawmakers can take, and Obama urged near universal checks in the plan he unveiled in January.

Sixteen Republicans voted last week to reject an effort by conservatives that would have blocked the Senate from even considering a broad bill restricting firearms. With that debate underway, Democrats hope to win enough supporters from this group to gain passage of the first amendment to that bill — the compromise between Manchin and Toomey, which expands background checks but less broadly than Obama has wanted.

By Monday evening, nine Republican senators from that group said they would oppose the Manchin-Toomey plan and one was leaning against it. Combined with the 31 senators who voted against debating the overall gun bill last week, that would bring potential opponents of expanding background checks to 41 — just enough votes to block the Senate from considering the compromise.

"I'm not going to vote for it. It's not the right thing to do," said Sen. Saxby Chambliss, R-Ga., who was among the 16 who voted last week to allow the debate to begin.

But in the heated political climate and heavy lobbying certain in the run-up to the vote, minds on both sides could change.

Opponents say expanded checks would violate the Constitution's right to bear arms and would be ignored by criminals. They are forcing supporters of the background check plan to win 60 of the Senate's 100 votes, a high hurdle.

Fifty Democrats and two Democratic-leaning senators voted last week to begin debate. If all of them support the Manchin-Toomey plan — which is not guaranteed — they would still need eight additional votes.

So far, three Republicans who backed beginning debate have said they will vote for the Manchin-Toomey plan: Toomey and Sens. Mark Kirk of Illinois and Susan Collins of Maine. A fourth, John McCain of Arizona, said he is strongly inclined to do so.

Sen. Frank Lautenberg, D-N.J., missed last week's vote after saying he was suffering from muscle weakness, but spokesman Caley Gray said he hopes to be in the Senate for votes this week.

Two Democrats, both facing re-election next year in GOP-leaning states, voted against beginning the gun control debate last week: Sens. Mark Begich of Alaska and Mark Pryor of Arkansas both said they are still deciding.

Background checks, designed to keep guns from criminals and the seriously mentally ill, are currently required only for sales handled by the nation's roughly 55,000 licensed gun dealers. The Manchin-Toomey measure would extend that to sales at commercial venues like gun shows and online, while exempting other transactions like those between relatives and friends.

"There's no debate that that's not an infringement of the Second Amendment" right to bear arms, said Toomey as he and Manchin touted their measure on the Senate floor.

White House spokesman Jay Carney said the gun legislation was "an absolute priority" and said Obama has been contacting senators, though he declined to say which ones.

But Carney said the vote would be "a difficult challenge." He said that because the Senate had voted last week to begin debating the measure "does not mean we have gotten to where we need to be, which is passage of legislation that is commonsense and that will reduce gun violence in America."

The White House originally had hoped for much more, including a ban on military-style rifles and high-capacity ammunition magazines.

The National Rifle Association said it was running an ad on cable television's Sportsman Channel and online criticizing Mayors Against Illegal Guns for running an ad showing a man holding a gun unsafely as he describes his support for expanded background checks.

"Is it possible he's an actor?" the ad asks, just before showing the NRA's "Stand and Fight" slogan.

Some relatives of the victims of the Connecticut families are planning a return trip to Capitol Hill this week to meet with senators they weren't able to visit on their lobbying trip last week. That trip was partly credited with helping move the Senate to debate the gun bill.

Also scheduled to be lobbying lawmakers this week are former Rep. Gabrielle Giffords, D-Ariz., and her husband Mark Kelly, the retired astronaut. She was severely wounded in a 2011 mass shooting in Tucson, Ariz.

The Manchin-Toomey deal also would expand some firearms rights, easing some restrictions on transporting guns across state lines and protecting sellers from lawsuits if buyers pass a background check but later use a gun in a crime.

The compromise is an amendment to broader gun control legislation to strengthen laws against illegal gun trafficking and to slightly increase school security aid.

___

Associated Press writer Nedra Pickler contributed to this report.


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On screens, familiar images of terror flash

NEW YORK — The Boston Marathon explosions and their aftermath were captured in chilling images that ran as relentless tape loops of terror online and on TV networks Monday, a sickeningly familiar routine in an age of violence designed for maximum impact.

Broadcast and cable news networks were on the story full time within an hour of the detonations. Screens barely cut away from the scenes. One video repeated dozens of times quickly became iconic: an overhead shot of the race's finish line with the blast flashing behind spectators on the right, causing one runner's legs to wobble as he crumpled to the ground.

Another video, taken by Steve Silva of the Boston Globe, showed the first explosion from ground level. As the camera panned over scurrying people and injured lying on the ground, the second blast goes off a short distance down the street.

Whoever was responsible made sure it was not only horrific but well-documented. It happened at the heavily populated finish line of the centerpiece event of Boston's Patriots Day holiday, "almost like New Year's Eve in broad daylight," said NBC News' Brian Williams. It was a place certain to be filled with cameras held by professionals and amateurs alike.

Several times, CBS News ran what appeared to be smartphone footage taken shortly after the first blast. "Something just blew up," a woman said. Then the picture becomes fuzzy as the second explosion is heard.

"Run! Go!" the woman shouts.

Television networks depicted chaos but were restrained in showing gore. One oft-repeated image showed a woman with a bloodied leg being rushed away from the scene in a wheelchair. Through wars, school shootings and terrorism attacks, it's a drill TV producers have learned from experience.

One of the most gruesome images, a still photograph taken by Charles Krupa of The Associated Press, showed a man being pushed in a wheelchair. His lower leg was blown away, with bloodied bones hanging down.

The image was sent to Associated Press members in two versions. In one, the leg was leg cropped out and in the other it was shown, said Santiago Lyon, AP vice president and director of photography. Many AP photos are sent directly to news websites with no outside filtering, but this picture was held back so editors could make their own judgments about whether to use it.

"Different markets have different tolerances for violence and gore," Lyon said. "We're pretty sure that parts of the world will make good use of it. We didn't want it to get out in the flow with no human intervention."

The Atlantic magazine's website used Krupa's image but required users to click on a warning before viewing it.

The Huffington Post web site ran several gruesome pictures, including Krupa's and others with injured people lying on blood-splattered sidewalks. The website's slideshow was preceded by a printed warning that "the following pictures are extremely graphic and may be disturbing to some viewers."

The Boston Globe website clustered video clips of the chaos following the blasts on a separate page. "We've had an attack," one man says on a video. He mutters, "Oh my God, oh my God, oh my God," as he continues to shoot video of first responders clearing debris.

CBS anchor Scott Pelley told viewers that "there have clearly been cases of amputation in some of the videos." The network did not show any such footage.

At one point, Fox News Channel's Shepard Smith was describing an interview that Fox had conducted with a doctor inside Massachusetts General Hospital who told of some gruesome injuries. The video as he spoke showed first responders wheeling gurneys and wheelchairs with the injured, either covered by blankets or without severe injuries apparent. There were also long-distance shots of people being aided on the sidewalk and of bystanders rushing from the scene.

"Every time they do it will scare us, just as it did in the year 2001 in this city," Smith said. "We ought to give our kids a hug and a kiss, and remind the people next to us that we love them. And remind whoever's responsible for this that you will not take us down, not on Patriots Day, not in Boston, not ever."

As with most of these breaking news situations, there were reports that proved unfounded and injury estimates that changed as the hours wore on. For a brief time, it was believed that there was an explosion at the John F. Kennedy library, but police said later it was a fire that may have been caused by an incendiary device, and it was not clear whether it was related to the bombings.

In the early hours, there was little active speculation on who might have been responsible. CBS' Bob Orr noted that experts were not seeing the type of chatter that would have indicated this was a wider-scale event. Jonathan Karl of ABC News talked about the timing — how Patriots Day in Massachusetts and the day taxes are collected might have been a trigger.

Television networks quickly made plans for additional coverage, expanding their evening news programs to an hour to cover the story. NBC's Matt Lauer, ABC's George Stephanopoulos and CBS' Norah O'Donnell were heading to Boston for additional coverage.

Social networks were filled with conversations, with celebrities like LeBron James and Paula Abdul offering sympathy to victims. People on Twitter were also urging television networks — and fellow tweeters — to show caution in what they were reporting to avoid inflaming the situation with false details.

___

Associated Press correspondents Leanne Italie in New York and Lynn Elber in Los Angeles contributed to this report.

___

http://apne.ws/ZwVzJn


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Business leaders come together

It will take some time, but Hub business leaders were confident in the wake of yesterday's Boston Marathon blasts that the city will bounce back and that visitors will not be scared away by the cowardly attack.

"It's such a devastating event to the families whose family members lost their lives or were injured or maimed," Pat Moscaritolo, president of the Greater Boston Convention & Visitors Bureau, told the Herald. "It's just so horrible, but Americans are resilient, so I am confident that they'll rise up and they will travel and they will travel to Boston."

He added that area attractions such as the Freedom Trail could have new meaning for locals and tourists after yesterday's attack, which came on Patriots Day, a holiday marking the first salvos of the American Revolution.

Fifteen blocks of Boston's Back Bay neighborhood were closed off as a crime scene yesterday while investigators gathered evidence related to the bombings. The city's thriving shopping district along Boylston and Newbury streets will likely be on lockdown for days during the normally busy Massachusetts school vacation week.

"Obviously, businesses will be impacted. However, the priority is for the public safety and the health of the community," Meg Mainzer-Cohen, president of the Back Bay Association, told the Herald. "This will be similar to incidents in New York. We will absolutely recover from this as a community by pulling together and making sure it never happens again."

Two huge explosions rocked the Marathon finish line on Boylston Street near Copley Square just before 3 p.m. yesterday. In a White House press conference, President Obama said it remains unclear who was responsible for the bombings, but he praised the Hub for its toughness in times of disaster.

"Boston is a tough and resilient town. So are its people," said Obama. "I'm supremely confident that Bostonians will pull together, take care of each other, and move forward as one proud city. And as they do, the American people will be with them every single step of the way."

Local business leaders echoed the president's words yesterday, saying the Hub would ultimately rebound from the attack.

"It shakes people and certainly those businesses in that area are going to have a bit of a recovery. We saw it certainly with 9/11 here in Boston when we were so much on lockdown here for a while," said Jon Hurst, president of the Retailers Association of Massachusetts. "It's normally a very big time for the economy leading into the Marathon and leading out of it and all through school vacation week, but how you gauge it (the impact) is impossible to say at this point."

George Regan of public relations firm Regan Communications said businesses obviously took a "huge hit" yesterday when instead of enjoying Marathon Monday by dining out or shopping, Hub visitors fled in terror.

"This will be impacting (businesses) for a while," said Regan, who represents several hotels and restaurants downtown. "It will come back, but it takes a while. You couldn't imagine this. It's very hard. This really is a hit for the city."

For some businesses, it was all hands on deck as they pitched in to help out yesterday.

The Massachusetts Emergency Management Agency partnered with Clear Channel Outdoor to provide public safety messages on digital billboards visible on Interstate 93 in Medford and Stoneham. Updates included information regarding family meeting sites, areas to avoid, cancellations and postponements.


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The Ticker

Thermo Fisher buys Life Tech for $13.6B

Thermo Fisher Scientific will acquire Life Technologies Corp. for nearly $13.6 billion, or $76 in cash per fully diluted common share.

The Waltham-based health-care equipment company will also assume Life Technologies' debt, which was $2.2 billion as of the end of last year.

Life Technologies, which is based in Carlsbad, Calif., provides products and services to customers conducting scientific research and genetic analysis, as well as those in applied markets, such as forensics and food safety testing. The company, which has more than 10,000 employees, reported 2012 revenues of $3.8 billion.

The sale, expected to close early next year, marks Thermo Fisher's largest acquisition since the 
$12.8 billion merger in 2006 of Thermo Electron and Fisher Scientific International.

Dish Network bids for Sprint Nextel

Satellite TV distributor Dish Network has offered to buy Sprint Nextel Corp. for $25.5 billion, topping the 
$20 billion merger Japan's SoftBank has proposed.

Dish has 14.1 million TV subscribers, making it the No. 2 satellite-TV company after DirecTV. Comcast Corp. is larger than both and is the nation's largest subscription TV provider. Sprint, which is based in Overland Park, Kan., has 55.6 million wireless devices on its network.

Dish said its proposed transaction includes 
$17.3 billion in cash and $8.2 billion in stock. It put the total worth at $7 per share.

Mass. gas prices drop 9 cents

Bay State gas prices are down 9 cents this week with self-serve, regular unleaded gas currently averaging $3.47 a gallon, 5 cents less than the national average of $3.52. Local prices are down 18 cents over the past month.

A year ago at this time, the Massachusetts average price was 42 cents more at $3.89.

The range in prices in the latest AAA survey for unleaded regular is 44 cents, from a low of $3.29 to a high of $3.73.

TODAY

  • The Labor Department releases the Consumer Price Index for March.
  • The Federal Reserve releases industrial production for March.

TOMORROW

  • The Federal Reserve releases the Beige Book.
  • Aushon BioSystems of Billerica has hired former SeraCare Life Sciences president and chief executive officer, Susan Vogt as the company's new CEO. Company founder and former CEO Pete Honkanen will assume the role of chief operating officer and continue as a board director.

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IRS: Boston-area taxpayers will get time on taxes

WASHINGTON — The Internal Revenue Serve says Boston-area taxpayers need time to finish their tax returns without worry.

Noting the tragedy of the explosions Monday at the Boston Marathon that killed two and injured more than 100, the IRS said it will be providing individual tax filing and payment extensions. Details will be announced Tuesday.

Two bombs exploded in the packed streets near the finish line of the marathon on Monday. A senior U.S. intelligence official said two other bombs were found near the end of the 26.2-mile course.


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Background checks for gun buyers win more backing

Written By Unknown on Senin, 15 April 2013 | 20.25

WASHINGTON — With the Senate set to begin debate on gun control legislation this week, a proposal to expand background checks for gun buyers picked up some key Republican support over the weekend. But it may not be enough to ensure the measure is adopted.

Republican Sen. Susan Collins of Maine issued a statement Sunday saying that she would vote for the compromise crafted by Sens. Patrick Toomey, R-Pa., and Joe Manchin, D-W.Va. The proposal requires background checks for people buying guns at gun shows and online, but exempts private gun sales.

The plan would "strengthen the background check system without in any way infringing on Second Amendment rights," Collins said. But Collins took a wait-and-see approach on the entire package, saying "it is impossible to predict at this point the final composition of the overall legislation."

Arizona Sen. John McCain, who has a B+ rating from the National Rifle Association, said he was "very favorably disposed" to the Manchin-Toomey compromise. It was in McCain's home state that a gunman with schizophrenia shot then-Rep. Gabrielle Giffords in the head during a 2011 rampage in Tucson that left six people killed.

Even with their support, the vote on the measure — expected as early as Wednesday — will be close.

"It's an open question as to whether or not we have the votes," Toomey said.

Asked how many votes he thought he had now, Manchin said, "Well, we're close. We need more."

Collins and Sen. Mark Kirk of Illinois are the only two Republicans besides Toomey who are expected to vote for the compromise as of now.

It will take 60 votes to pass, meaning that more Republicans will have to come on board because some Democrats from gun-friendly states are expected to oppose the measure.

The measure requires background checks for people buying guns at gun shows and online. Background checks currently apply only to transactions handled by the country's 55,000 licensed gun dealers. Private transactions, such as a sale of a gun between family members, would still be exempt.

Advocates say the measures would make it harder for criminals and the mentally ill to get weapons.

Opponents argue that the restrictions would violate the Constitution's right to bear arms and would be ignored by criminals.

Manchin urged lawmakers to read the 49-page proposal.

"If you are a law-abiding gun owner, you're going to like this bill," Manchin said. "Now, if you're a criminal or if you've been mentally adjudicated and you go to a gun show or try to buy a gun online, you might not like this bill because you can't do it."

Manchin later noted that one gun rights group, the Citizens Committee for the Right to Keep and Bear Arms, has announced support for his plan.

And later Sunday, the Manchin-Toomey compromise was endorsed by the Independent Firearms Owners Association, a pro-gun group that is smaller and more moderate than the NRA.

The bill is the right way to "stand firm in defense of our constitutional rights and the security of our fellow citizens," said the group's president, Richard Feldman, a former NRA official.

The senators' agreement actually includes language expanding firearms rights by easing some restrictions on transporting guns across state lines, protecting sellers from lawsuits if buyers passed a background check but later used a gun in a crime and letting gun dealers conduct business in states where they don't live.

The compromise, if successful, would be added to broader gun control legislation to strengthen laws against illegal gun trafficking and to slightly increase school security aid.

Other additions to the legislation also are expected to be debated this week, including a measure that would allow concealed hand gun permits issued by one state to be accepted nationwide as a de facto background check.

Sen. Marco Rubio, R-Fla., said on several news shows that concealed weapons permits should be applied nationally. He also called for more prosecution of people that are trying to buy guns and fail a background check.

The Senate is also expected to consider, and reject, Democratic amendments to ban assault weapons and ammunition magazines carrying more than 10 rounds.

Manchin and Toomey were on CNN's "State of the Union" and CBS' "Face the Nation." McCain was on CNN.


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Thermo Fisher to buy Life Technologies for $13.6B

Thermo Fisher Scientific Inc. has offered to pay about $13.6 billion to buy genetic testing equipment maker Life Technologies in a cash deal that will create a giant company serving research and specialty diagnostics.

The Waltham, Mass., company said Monday it has agreed to pay $76 in cash for each share of Life Technologies, which is based in Carlsbad, Calif.

Shares of both companies jumped after they announced the deal before markets opened.

Life Technologies Corp. shareholders and regulators still need to approve the acquisition, but the boards of both companies have already backed it. Thermo Fisher, which makes scientific instruments and laboratory supplies, said it has obtained financing commitments for the deal from JP Morgan and Barclays.

The companies expect the deal to close early next year. The $13.6 billion price does not include $2.2 billion in debt that will be assumed as part of the deal.

Life Technologies offers more than 50,000 products and delves into genetic analysis and engineering, stem cell therapies and chemicals used in forensics and food safety. It owns or licenses more than 5,000 patents.

The company was formed in November 2008 through the combination of Invitrogen Corp. and Applied Biosystems Inc. and has about 10,000 employees. It earned about $430.9 million, or $2.40 per share, last year on $3.8 billion in revenue. Its earnings climbed 18 percent in the fourth quarter.

The company's stock price has shot up more than 38 percent so far this year and set several record highs. Much of that climb started after Life Technologies said Jan. 18 that it had retained Deutsche Bank Securities and Moelis & Co. to help conduct a strategic review of its business, but it had not decided on a course of action.

Its shares then climbed again last month after The Wall Street Journal reported that investment manager KKR & Co. was thinking about pairing up with other private equity firms to pursue Life Technologies. The report, citing anonymous sources, also named Thermo Fisher as a possible bidder.

Life Technologies shares jumped $5.21, or 7.7 percent, to $73.21 in premarket trading about 45 minutes ahead of the market opening while Thermo Fisher rose $3.56, or 4.5 percent, to $83.15.


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Citigroup beats on earnings, revenue; stock rises

NEW YORK — Citigroup beat analysts' estimates for first-quarter earnings and revenue, and the bank's stock rose in pre-market trading. Citi's investment banking business jumped and the bank also released funds it had set aside for bad loans.

Citigroup bank made $4 billion, up 17 percent from a year ago, after stripping out the effects of an accounting charge. That amounted to $1.29 per share, beating the $1.17 that analysts polled by FactSet were expecting.

Revenue was $20.8 billion after stripping out the accounting charge, up 3 percent from a year ago. That also beat the $20.2 billion that analysts had expected.

Investment banking revenue there jumped 31 percent, the bank reported Monday, while revenue from consumer banking was flat. Citi's investment banking unit advised more companies on mergers and acquisitions and underwrote more stock and bond offerings. In the consumer bank, credit card revenue inched down.

Citi Holdings, the unit where the bank has shuttled troubled assets related to the financial crisis, lost less than in the same period a year ago. Citi Holdings lost $789 million, compared with more than $1 billion a year ago.

The bank also continued to release money it had set aside for bad loans, including releasing reserves from Citi Holdings' North American mortgage portfolio for the first time. Its total allowance for loan losses is now $23.7 billion, or 3.7 percent of total loans, compared to $29 billion, or 4.5 percent of total loans, a year ago.

Citi also benefited from a deferred tax credit. When companies have big losses, they get a break on taxes. Citigroup, which suffered big losses in 2008, was allowed to hold onto tax credits to use in the future, in years when it was profitable.

CEO Mike Corbat highlighted the bank's improving capital levels and the reduced "drag" from Citi Holdings.

It was Citi's first full quarter under Corbat, who took over last fall. Former CEO Vikram Pandit stepped down under pressure from a board that was unhappy with his efforts to turn around the bank. Corbat is now under pressure to turn around a bank that his predecessor couldn't.

Corbat called the bank's first quarter results encouraging, but he sounded more cautious about the economy than his peers at JPMorgan and Wells Fargo did when they reported earnings Friday.

"The environment remains challenging," Corbat said in a prepared statement, "and we are sure to be tested as we go through the year."

Citi's stock rose 2 percent to $45.83 in pre-market trading even while stock index futures were down.


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China and Iceland sign free trade agreement

BEIJING — China and Iceland signed a free trade agreement Monday, offering hope to the small North Atlantic country for its recession-battered economy and giving Beijing a leg up in its drive for expanded influence in the Arctic.

The China-Iceland free trade pact will lower tariffs on a range of goods and is expected to boost seafood and other exports from the remote Nordic state to the world's second-largest economy. It comes at the start of a five-day visit to China by Icelandic Prime Minister Johanna Sigurdardottir that highlights her country's attempts to diversify an economy that was badly mauled by the bursting of a massive financial bubble in 2008.

Chinese Premier Li Keqiang told Sigurdardottir the agreement was "a major event in China-Iceland relations."

"It also signals the deepening of our relationship, especially our economic relationship which has been lifted to a new height," Li said during talks following a formal welcoming ceremony at the Great Hall of the People in the center of Beijing.

Trade between China and the England-sized country of just over 315,000 people rose 21.1 percent last year to $180 million, according to the Chinese Ministry of Foreign Trade. Iceland exports mostly fish to China and imports Chinese products from ships to shoes. Sigurdardottir has been keen to push Icelandic services and the island's geothermal energy potential.

Iceland has unique importance to China as it attempts to gain a foothold in the Arctic, where melting ice is opening passages for shipping and could create a boom in extraction of resources such as gas, oil, diamonds, gold and iron.

China is seeking permanent observer status in the Arctic Council, an eight-nation body that includes Iceland and decides on policy in the region. China is expected to be accepted when a final decision is announced next month, drawing support from the prospect of heavy Chinese investment in the region's mining industries as advertised by its proposal to sink $2.3 billion into Greenland to secure 15 million tons of iron ore per year.

Shipping via the Arctic, meanwhile, would cut about 6,400 kilometers (4,000 miles) and two weeks off the journey between northern Europe and Shanghai. Seeking to prove the route's viability, Chinese researchers last August completed their first 30,000-kilometer (19,000-mile) journey between Iceland and Shanghai.

China sees a range of opportunities in the Arctic and will continue to expand its research in the area and conduct further expeditions, said Leiv Lunde, director of the Oslo-based Fridtjof Nansen Institute.

"It's attractive also for all the resources but China is already a major shipping nation ... and Chinese companies are now very eagerly awaiting policy signals from the Chinese government on what kind of priorities they will give to the Arctic," said Lunde, who was attending a conference Monday on Arctic issues in Shanghai.

China's desire for a presence in the Arctic has prompted an unusual degree of interest in Iceland. China recently completed what is far-and-away the largest embassy complex in the Icelandic capital Reykjavik, reportedly capable of accommodating a staff of 500. Wen Jiabao, China's premier until a leadership transition was completed in March, included a rare stop in Iceland on a visit to Europe last year.

It hasn't always been smooth sailing, however. Chinese investor Huang Nubo has been stymied in his bid to build an adventure tourism resort on a barren patch of northeastern Iceland that would include an airport, golf course, and 120-room hotel.

Iceland rejected his original bid to purchase the land that comprises 0.3 percent of Iceland's territory, prompting an angry Huang to blame Western prejudice and unfounded suspicions that he was a tool of the Chinese military. Icelandic officials have said they don't see the resort as viable and Huang has said he would drop the project unless he gets approval by the end of May.

Xu Hong, deputy general manager of Huang's Zhongkun Investment Group, said the company remained in contact with the landowner and Icelandic government.

"We're optimistic that we'll be able to have the response by the end of May," Xu said.

Xu said no meetings were planned between Huang and Sigurdardottir during her visit.

___

Associated Press writer Louise Watt contributed to this report.


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GOP lawmakers blast Labor secretary nominee

WASHINGTON — In a blistering report, Republican lawmakers sharply criticized Labor secretary nominee Thomas Perez over what they said was a questionable deal he brokered while serving as head of the Justice Department's Civil Rights Division.

The 63-page report, issued Sunday after months of investigation, is certain to provide fodder for Republicans seeking to challenge Perez at his Senate confirmation hearing Thursday.

The GOP lawmakers accuse Perez of misusing his power last year to persuade the city of St. Paul, Minn., to withdraw a housing discrimination case before it could be heard by the Supreme Court. In exchange, the Justice Department agreed not to intervene in two whistleblower cases against St. Paul that could have won up to $200 million for taxpayers.

Perez has defended his reason for wanting St. Paul to drop its case, telling investigators that he feared an adverse ruling from the Supreme Court would jeopardize the government's use of statistics to win housing discrimination cases. The Justice Department also says Perez got proper clearance and made the deal in the best interests of the nation.

But Republicans say the deal was dubious, that Perez misled senior officials about his intentions, and that he tried to cover up the true reason for his decision not to intervene in the whistleblower cases.

"This offer was inappropriate and potentially violated Perez's duty of loyalty to his client, the United States," said the report from Iowa Sen. Charles Grassley, California Rep. Darrell Issa and Virginia Rep. Bob Goodlatte.

Issa is chairman of the House Oversight Committee, while Goodlatte heads the House Judiciary Committee. Grassley is top Republican on the Senate Judiciary Committee.

Top Democrats on the House Oversight Committee issued their own report on the investigation Sunday, writing that Perez "acted professionally to advance the interests of civil rights and effectively combat the scourge of housing discrimination."

The Justice Department also defended Perez in a statement, saying litigation decisions made by the department "were in the best interests of the United States and were consistent with the department's legal, ethical and professional responsibility obligations."

"In resolving False Claims Act matters, the Department has broad discretion to consider legal, factual and policy factors," the statement said. "The decision to decline to intervene in these cases followed an examination of such factors and permitted the relators to continue to pursue their claims against the city."

The Republican report cites documents that suggest Perez's decision frustrated and confused career attorneys at Justice who initially wanted to join the whistleblower cases against St. Paul. These attorneys described the department's change of heart as "weirdness," ''ridiculous" and a case of "cover your head pingpong."

The report also quotes the handwritten notes from one Justice lawyer who wrote after a January 2012 conference call: "Message from Perez. When you are working on memos make sure you don't talk about Sup. Ct. case."

But Democrats claim Perez was up front about using the strategy and cleared it with ethics and professional responsibility officials before it was finalized. Associate Attorney General Tom Perrelli told investigators it was common Justice Department practice to encourage parties not to pursue Supreme Court cases with poor fact patterns that could lead to adverse national interests.

"Instead of identifying inappropriate conduct by Mr. Perez, it appears that the accusations against him are part of a broader political campaign to undermine the legal safeguards against discrimination that Mr. Perez was protecting," said the staff memo issued Sunday by Rep. Elijah Cummings, top Democrat on the House Oversight Committee, and Rep. John Conyers, top Democrat on the House Judiciary Committee.

Federal law allows whistleblower cases alleging misuse of public funds to be brought by private parties. If they win, they can keep a percentage of the proceeds while the government gets the rest. The Justice Department intervenes in about 22 percent of federal whistleblower lawsuits, a move that can give the case a better chance of winning. The department has recovered more than $13 billion from such cases over the past four years, according to Justice Department statistics.

After the Justice Department declined to join the whistleblower cases against St. Paul, one of them was later dismissed. The second is still being litigated by a private plaintiff.


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Babson holding food boot camp

Written By Unknown on Minggu, 14 April 2013 | 20.25

Budding food entrepreneurs hungry to cook up their own businesses can learn the key ingredients during a one-day culinary boot camp at Babson College on Wednesday.

Sponsored by the Wellesley-based school's Graduate Student Council, "Small Bytes and Apps" will tackle such topics as the emotional components of starting and owning a food business; permits needed to set up shop; the landscape of food and tech businesses; and marketing and branding.

Event speakers told the Herald the purpose of the event, which is free to veterans and Babson students, is to motivate participants to tinker with their ideas even if they risk failure, given that the food industry has become more influenced by youth and technology.

"We're trying to inspire people who might be currently sitting on the sidelines who have a great idea but are scared and do not know the first step to starting their own business," said local "popup entrepreneur" and chef Wheeler del Torro, 32, of Jamaica Plain. "When I started my first culinary business, I was 16 years old and I had no idea what I was doing."

Del Torro said the Babson boot camp stems from his startup Farmacie, which caters motivational lunches for tech startups and corporations and is comprised of not just entrepreneurs with MBAs, but MFAs as well.

"For us, the creative side is a lot more important than having a fail-proof business plan. The business stuff you can always learn," del Torro said. "Creativity is a very hard thing to pick up."

Despite a growing influx of food trucks and businesses throughout the city, the food industry can scare younger people thinking about opening a business because of Boston's high cost of living, del Torro added.

Yet Rayna Verbeck, owner of 3 Scoops Cafe in Brighton and a second-year Babson graduate student, said now is an opportune time to open a food business, despite the sluggish economic outlook.

"It's a great time for people to create their own jobs and innovate in as many ways as possible," she said. "With the growth of food trucks and cafes and Internet connections, you don't have to worry about reaching the whole country with food right away."

Verbeck, who will discuss paperwork, agencies and legal and insurance issues involved in starting a food business, said technology, particularly social media, can influence a brand's success in ways that seemed impossible years earlier.

"I bought 3 Scoops three years ago when I was 24. I did not have it all laid out in front of me. Any new entrepreneur, no matter what stage or experience coming in can use as much knowledge as possible and as many guiding steps as possible," she added. "These are tips I would have given me three years ago."


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Milan show mixes design, fashion, architecture

MILAN — Bathrooms that beg indulgence. Tiles that reduce pollution. Lighting that mimics a rainbow.

Extravagance, social consciousness and innovation are strange, but alluring, bedfellows at the Milan Furniture Show and the myriad side events dedicated to design that wrap up Sunday, ending a weeklong celebration of domestic bliss in its many forms.

The burgeoning event was originally conceived to promote Italian furniture making, which is withstanding the recession better than many industries, and now encompasses also design, fashion and architecture.

And as all these disciplines converge, so does utility. More and more, pieces can be shifted from room to room, and from home to office.

Global sales of luxury furnishings last year rose 3 percent to 18.5 billion euros ($24 billion), according to a study by Bain&Company for the Altagamma association of luxury designers. That's behind the 10 percent growth of the luxury industry as a whole, largely because emerging markets like China still haven't gotten around to redecorating their interiors, which Bain says gives great growth potential to the sector.

The sprawling event gives ample space for everyone from established designers like Phillipe Starck and Ingo Maeur to unknown newcomers to showcase their new creations.

LIGHTING

Inside a darkened room, tiny LED lights create halos that seem to bend when a hand reaches through. The effect is one of a rainbow, this one manmade with by the Tokyo/Milan design studio IXI with technology by Toshiba. Here, crystals mimic water droplets and the LED lights the sun. The one-off installation created for design week is called "Soffio," Italian for breath.

Lighting fixtures remain a central theme during design week, from the elegant to the fanciful.

The prestigious French crystal maker Baccarat engaged some of the industry's luminaries to interpret lamps, chandeliers and lighting fixtures for this year's furniture show.

Brazilian brothers Fernando and Humberto Campana incorporated rattan, bamboo and silk in a series of exotic lamps. For their Fusion collection, the encased a greenish blue crystal bulb within bell-shaped rattan shade that suggests the Maghreb. And a clear crystal bulb nests within bamboo cocoon in a table lamp that evokes Asia. Phillipe Starck designed a series of elaborate 24-light chandeliers, one featuring three glass deer heads in full antlers, while Arik Levy created a modernist 4-level frozen pattern chandelier.

Munich-based Ingo Mauer had a wholly modern interpretation on the chandelier. His "Flying Flames" evoke floating candles fashioned from red or black circuit boards with an electronic flame rendered in LEDs, each suspended from the ceiling. The 32-light creation was shown spectacularly in front of a reproduction of Leonardo's Da Vinci's "Last Supper."

BATH

No more is the bathroom strictly utilitarian. Increasingly, it is a sanctuary for indulgence, more spa than pit stop on the way to the office or out for the evening.

Design firms are taking note of trend, and have begun to enter one of the fastest-growing luxury furniture sectors, worth 2.8 billion euros globally last year.

Kartell, the Italian design leader, launched its first-ever collection intended for the bathroom, teaming up with the Swiss fixture maker Laufen and designers Ludovica and Roberto Palomba.

"I noticed more than two years ago that the bathroom is becoming more and more important," said Kartell president Claudio Luti. "Now, people want to find the comfort there that you have in the rest of the house. It becomes total living."

The Palomba design team used Laufen's latest technology, a ceramic called SaphirKeramik that is 30 percent lighter and easier to shape, to create graceful bathtubs and washbasins and sanitary fixtures.

The tub and sinks are freestanding and floor-mounted for a clean and spare look. Overflow drains can be hidden, and Kartell has designed colorful disks that fit over external faucets to incorporate utility.

The fixtures are paired with transparent cabinets, shelves, stools and towel racks in Kartell's signature transparent plastic — also in warm colors like orange and blue — that allow many configurations to customize the space.

SUSTAINABLE LIVING

Design is getting more ecological. Consider that it may not be the family car that is contributing the most to pollution. Buildings are responsible for 40 percent of energy consumption and one-quarter of carbon gas emissions, exceeding industry and transport sectors when it comes to pollution.

Architect Mario Cucinella has been pushing the agenda of sustainable buildings and this year presented a conceptual project with tile-maker Marazzi aimed at focusing attention on the importance of clean air. Titled "Pure Air," the 6-square-meter (7-sq. yard) cube installed at Milan's state university was filled with purified air and covered with hexagonal black stoneware tiles produced with an energy efficient process. Inside, both air and noise pollution are filtered out.

Cucinella said he wants to promote the idea that new architectural materials — like tiles that absorb humidity — can help tackle the growing problem of pollution.

"For me the idea is to say, 'Come to breath pure air,' " Cucinella said. "I am not interested in making an extravagant building to show off my architectural ego."

For those not looking to build or embark on major remodel, the design week offered other stylish, sustainable solutions.

Bologna-based designer Alessandro Israelachvili set up a temporary store filled with furnishings made from recycled objects: lamps shaped from a 1970s desk telephone, an old-fashioned electric iron and even a washing machine centrifuge.

NEWCOMERS

A group of young designers from Serbia presented creations based on their interpretation of a "memory box," an exercise meant to reflect on Serbia's drive for EU membership while confronting its role in the 1990s Balkan wars. The theme was the basis for a national contest promoted by Serbia's investment and export agency to promote young Serbian designers abroad. Each of the winning creations was inspired by necessity and had a spare simplicity in both the design and execution. Most were made from wood, a resource plentiful in Serbia.

Sasha Mitrovic created "Matrioshka," a system of seven nesting wooden storage units that recall the Russian doll of the same name. From a container measuring 110X86X63 centimeters (43X34X25 inches), which can easily fit in even a compact car, emerge smaller cabinets, drawer and shelf units with painted facades that stack together to create a wall unit.

Mitrovic said he was inspired by the ingenuity of the matryoshka dolls. "You open the door, and don't know what to expect," he said.

Stevan Durovic, 25, showed off a switch-less lamp shaped, a large sphere that turns on and off when rotated. The light has a full-moon effect, accentuated by a spare dark base that recedes into the darkness. And Ana Babic, 26, was inspired by the Ferris wheel to create a whimsical, rotating storage unit consisting of five tool boxes.

DESIGNERS

Versace Home collaborated with the Haas brothers from Los Angeles to create black leather furnishings with golden accents that ooze the Versace DNA, evident in the names: The Stud Club and The Bondage Bench.

An armchair is covered with studs, reflecting Donatella Versace's rock 'n roll spirit, while a bench is wrapped in belts, which the collection notes say "plays with the sexuality of fashion and design." The legs of the pieces are clad in honeycomb-shaped brass for a flashy look even in a darkened room.

For the show, Roberto Cavalli created a melange of tableware incorporating his animal prints, while Bottega Veneta commissioned American artist Nancy Lorenz to create 25 unique boxes inspired by the cosmos. The pieces are covered in the high-quality Bottega Veneta leather, and Lorenz used materials such as gold, silver leaf and mother of pearl to create abstract images that recall outer space.

CROSSOVER DESIGN

The lines between design, fashion and architecture continue to blur.

Dutch architect Rem Koolhaas shifted scale to create 11 pieces of furniture for the U.S. industrial design house Knoll. The "Tools for Life" pieces, meant for home or office, include a dynamic counter — a stack of three horizontal beams that can be transformed from a screen-like unit to cantilevered shelves and benches that invite people to sit, climb and lean in. The end result is a social/intellectual romper room.

Italian eyewear maker Safilo engaged architect Michele De Lucchi, who created a natural pinewood structure fitted with plaster casts of ancient figures wearing eyeglasses. Safilo CEO Roberto Vedovotto said the company's participation in the design fair is meant "to underline we are fully part of the world of design."


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AP Exclusive: Likely tax cheats flock South, West

WASHINGTON — Worried the Internal Revenue Service might target you for an audit? You probably should be if you own a small business in one of the wealthy suburbs of Los Angeles.

You might also be wary if you're a small-business owner in one of dozens of communities near San Francisco, Houston, Atlanta or the District of Columbia.

A new study by the National Taxpayer Advocate used confidential IRS data to show large clusters of potential tax cheats in these five metropolitan areas. The IRS uses the information to target taxpayers for audits.

The taxpayer advocate, Nina Olsen, runs an independent office within the IRS. She got access to the data as part of an effort to learn more about why some taxpayers are more likely to cheat than others.

The study also looked at tax compliance in different industries, and found that people who own construction companies or real estate rental firms may be more likely to fudge their taxes than business owners in other fields.

Many of the communities identified by the study are very wealthy, including Beverly Hills and Newport Beach in California. Others are more middle class, such as New Carrollton, Md., a Washington suburb, and College Park, Ga., home to a section of Atlanta's massive airport.

Steve Rosansky, president and CEO of the Newport Beach Chamber of Commerce, said business owners in his city are probably targeted because many have high incomes. The likelihood of an audit does increase with income, according to IRS data.

"I imagine it's just a matter of them going where they think the money's at," Rosansky said in an interview. "I guess if I was running the IRS I'd probably do the same thing."

The study focused on small-business owners — sole proprietorships, to be specific — because they have more opportunity than the typical individual to cheat on their taxes. Many small businesses deal in cash while most individuals get paid in wages that are reported to the IRS.

The IRS only audits about 1 percent of tax returns each year, so the agency tries to pick returns that are most likely to yield additional tax money.

The IRS will not say much about how agents choose their targets. But as millions of procrastinators scramble to meet Monday's deadline to file their taxes, the agency is running every tax return through a confidential computer program to determine the chances of collecting more money from an audit.

Each tax return is assigned a score. The higher your score, the more likely you are to get audited because, according to the IRS, the more likely you are cheating on your taxes.

The score is called the Discriminant Inventory Function, or DIF. A high DIF score does not guarantee you are a tax cheat but the IRS claims it's reliable.

"If your return is selected because of a high score under the DIF system, the potential is high that an examination of your return will result in a change to your income tax liability," says an IRS publication that explains the auditing process.

How do you get high score? The IRS won't say, but veteran tax preparers and former IRS workers believe they have a pretty good idea.

"If you're reporting $8,000 of charitable contributions when you're only making $50,000, that's a red flag," said Bob Meighan, vice president of TurboTax, an online tax preparation service. "Likewise if you're reporting business or employee expenses that are out of the ordinary for your income range, that would attract the interest of the IRS as well."

The bottom line, according to the experts: People who take unusually large deductions for their income get a high score. Also, business owners who claim unusually large expenses for the size and type of their business get a high score.

"I had a case here where the person made about $40,000 and they claimed $25,000 of employment-related expenses," said Elizabeth Maresca, a former IRS lawyer who now teaches law at Fordham University. "Most people don't spend $25,000 to earn $40,000. That's an unusual number."

DIF scores can vary across industry, according to the study by the taxpayer advocate. For example, people who owned construction and real estate rental companies were more likely to have high scores. Lawyers, accountants and architects and people who provided other professional services were more likely to have low scores.

Olsen said construction and real estate rental companies probably deduct more expenses that are not independently reported to the IRS. The IRS does not like those kinds of expenses because they are harder to verify without an audit.

"Construction for sole proprietors has been historically a cash business," Olsen said.

The study, which was included in Olsen's annual report to Congress in January, used data from 2009 tax returns to plot the DIF scores for sole proprietorships across the country. The city where you live is not a component of the score, according to the study. Nevertheless, researchers were able to identify clusters of likely tax cheats.

Sole proprietorships make up about two-thirds of all U.S. businesses. Sole proprietors report business income on their individual tax returns and, the IRS says, they account for the biggest share of the tax gap, which is the difference between what taxpayers owe each year under the law and what they actually pay.

The tax gap was $345 billion in 2006, according the latest IRS estimate.

In all, researchers identified clusters of potential tax cheats in more than 350 communities in 24 states, mostly cities and towns but some neighborhoods, too. About one-third of them were in California, with most near Los Angeles and San Francisco.

Most of the others were in communities near Houston and Atlanta, and in the Maryland suburbs of Washington. There were relatively few in the Midwest or the Northeast.

The researchers also looked for areas with high concentrations of small business owners who were very unlikely to cheat on their taxes.

They came up with four: the Aleutian Islands in Alaska; West Somerville, Mass., a neighborhood in Somerville, a suburb of Boston; Portersville, Ind., an unincorporated town in the southern part of the state; and Mott Haven, a neighborhood in the Bronx, one of New York City's boroughs.

Stephen Mackey, president and CEO of the Somerville Chamber of Commerce, said he's glad the business owners in his community excel at civic virtue. But he was at a loss to explain why they stood out from so many others across the country.

"I'd like to think we're not alone in terms of the civic engagement of business people," Mackey said. "But I would say two things. One is they are very close to the community inside and outside their businesses. At the same time, it's not small town America. It's minutes from downtown Boston."

___

AP Director of Polling Jennifer Agiesta contributed to this report.

___

Online: National Taxpayer Advocate study: http://tinyurl.com/cjtgpt5

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap


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