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Bar raised at Graybar site with 560 apartments on tap

Written By Unknown on Sabtu, 06 Juli 2013 | 20.25

Developers have filed formal plans to construct apartments and retail space in a section of the South End that has become a hot spot for redevelopment.

The applicants, listed officially as F8345 Harrison Owner LLC, would build two multi-family apartment buildings featuring shops on the ground floors at the site of Graybar Electric on Harrison Avenue, according to documents filed with the Boston Redevelopment Authority.

The project would include approximately 560 rental units in 515,000 square feet as well as 30,000 square feet of retail space.

The development team said it has already met with community representatives and with the BRA, according to the filings.

Burlington-based Nord-blom Co., bought the Graybar building, which is between Harrison Avenue and Washington Street, for a whopping $14 million in June 2012. The company also bought the former Teradyne headquarters — an 11-story office building and parking garage at 1000 Washington St. — which is just next door to Graybar.

Graybar has operated out of the South End building since 1960.

That area is quickly changing. Across the street from Graybar is the Ink Block — the former Boston Herald building — which is being transformed into 471 apartments, a Whole Foods market and restaurants and shops.

The former Teradyne parking lot is being turned into a two-building apartment complex that will stretch 19 stories.

And developers also want to redevelop an auto repair shop and parking lot into an 11-story office building just down the street on East Berkeley Street between Washington Street and Shawmut Avenue.

Representatives from Nordblom did not return calls and emails seeking comment yesterday.

A spokeswoman for the Boston Redevelopment Authority told the Herald it's too early in the process to comment.


20.25 | 0 komentar | Read More

Hyundai does luxury right

The 2013 Azera, which is slotted between Hyundai's Sonata and Genesis, is one of six sedans in the Korean automaker's 10-model lineup. I'm amazed that Hyundai offers that many models, but I shouldn't be surprised, Hyundais are everywhere you look these days. But with all those models, it's difficult to distinguish the Azera from the others.

The Azera's $33,000 base price puts the sedan in direct competition with the Ford Taurus, Nissan Maxima and Buick LaCrosse. Our test model included a technology package that hiked the price up to $37,000, which certainly doesn't make the Azera a bargain, but it remains competitive when you consider that the sedan is loaded with luxury features.

Dual-zone climate controls, heated seats throughout, and touch screen navigation with a back-up camera are all part of the Azera's standard equipment package. Power seat adjustments mounted near the door handles made it easy to see the controls and tweak the driver's seat positions. Interior space was ample with plenty of head and foot room in the backseat.

The Azera's $4,000 technology package included ventilated front seats that cooled the Azera's leather interior after it baked in the June sun. Rear and side window sunshades also helped keep the sedan cool. The shades also gave the Azera's two-tone camel and black interior an upscale feel. A panoramic tilt and slide sunroof opened up the roof for both front and backseat passengers. Xenon headlights and a powerful Infinity stereo rounded out the package. While these features were appreciated, if I were buying an Azera, I think I'd hold on to the extra $4,000.

Our test Azera was painted in a bronze metallic with plenty of chrome trim and was set on 19-inch wheels. A push-button-ignition turned over the sedan's 3.3 liter V6 engine that produced 293 horsepower. The engine and 6-speed transmission combined to return 23 mpg overall. The Azera's acceleration was smooth with a comfortable ride quality and had minimal road noise. While the Azera's front-wheel drive is welcome for winter driving in New England, it did hinder the sedan's handling.

If you're considering a Sonata, the Azera might be worth a look. The extra $10,000 gets you more room and a cabin loaded with luxury touches. Better performance and handling can be found with the rear-wheel-drive Genesis that offers a choice of a V6 or a V8 engine mated to an 8-speed automatic. The Genesis has a base price of $35,000.


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U.S. jobs up, but many gigs are not 40 hours

Employers kept hiring in June, adding a better-than-expected 195,000 jobs, but many of them were part-time or temporary positions, hinting at a hollow economic recovery.

The number of part-timers who said they would prefer full-time work soared 322,000 to 8.2 million — the most in eight months, according to the Labor Department's monthly jobs report. These people were working part time because their hours had been cut or because they were unable to find a full-time job, the Bureau of Labor Statistics said.

The growing number of part-time workers may be related to the across-the-board federal budget cuts and the associated cutbacks and furloughs of federal employees, said Michael D. Goodman, associate professor and chairman of the Department of Public Policy at UMass Dartmouth.

And some employers may be reluctant to hire full-time workers because they would have to offer them health insurance under the Affordable Care Act, which starts to go into effect next year.

"Obamacare pretty much does discourage full-time work by withholding subsidies from a large majority of full-time workers and by penalizing employers who don't offer health insurance," said Casey B. Mulligan, a professor of economics at the University of Chicago.

But while there are incentives built into the Affordable Care Act that will lead some companies to hire part-timers over full-timers, that is not as important as sufficient demand for goods and services, said Robert A. Nakosteen, professor of economics and statistics at the UMass Amherst Isenberg School of Management.

"We still have a 'demand-deficient' economy — not enough spending in the aggregate, "Nakosteen wrote in an email, "and until this problem comes to an end, companies will not hire in sufficient quantities, and/or will hire part-timers, to bring our labor market to full employment."

Because more people started looking for work, the unemployment rate remained at 7.6 percent last month, according to the Labor Department.

"But the broadest official measure of unemployment, the so-called 'U-6', rose from 13.8 percent to 14.3 percent in June," Goodman said. "This measure includes the unemployed and workers who want to work but have given up looking and those working part-time for economic reasons. Thus, while the recovery continues, it is continuing to leave troublingly high numbers of American workers behind."


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Set loft-y goals in sunny JP unit

Carved out of a former carriage factory in Jamaica Plain, this authentic-looking loft has brick walls throughout and gets lots of light from a wall of front-facing windows.

Unit 9 at 172 Green St. is one of 14 units in a former brick carriage factory built by Hub entrepreneur Patrick Meehan in 1880 in the Brookside industrial area of Jamaica Plain, near the Green Street Orange Line T station.

The building was converted into condos in 1999-2000 in a way that preserved much of the original brick-and beam look, but with new windows and systems.

The 1,677-square-foot loft, which has a walled-off bedroom and a granite and cherrywood kitchen added in 2006, is on the market for $699,000.

The unit is dominated by one long room with areas for a living room, dining space and a home office. The 10-foot ceilings and columns feature original wood beams and the refinished floors are dark-stained maple.

This open area gets lots of light from 10 front-facing windows and three side windows, all with brick arches overhead.

The living room has a center gas fireplace fed by a metal duct, part of a network of ductwork across the ceiling.

A set of wood beams sets off a dining area with contemporary lighting overhead.

And there's another area in the large room currently used as a home office.

Off the dining area is the unit's large full bathroom with granite floors, a Corian-topped vanity and a one-piece Fiberglas shower.

Adjacent is a laundry/utility room with a stacked Kenmore washer and dryer. There's also a good amount of pantry and storage space in this room that also holds the unit's forced-hot-air-by-gas heating and an electric central air-conditioning system added in 2004.

Perpendicular to the home office area is the kitchen, redone in 2006. The kitchen has cherrywood cabinets, some with glass fronts, and absolute black granite counters, including an area with a breakfast bar. There's overhead and pendant lighting and refinished maple floors.

The owners also added stainless-steel appliances, including a high-end DCS gas stove, an LG refrigerator and a Bosch dishwasher.

Off the kitchen, the current owners built a wall with custom woodwork in 2006 to create a private 16-by-13-foot bedroom whose entrance features two glass doors with transom windows and track lights above. The bedroom has brick walls and two front-facing windows. There's also a double-door closet.

An added amenity is that the unit comes with a good-sized private storage room in the building's basement.

There's a common outdoor patio in the back of the building, where there's also parking. The unit comes with one deeded parking space.

Broker: Denise Smigielski of McCormack & Scanlan Real Estate at 617-905-2098


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Egyptian unrest trips hike in crude oil prices

Crude oil prices surged yesterday on a better-than-expected U.S. jobs report and concern about escalating unrest and violence in Egypt.

U.S. crude oil futures hit a 14-month high, climbing more than $1.98 per barrel to close at $103.22, after hitting a peak of $103.32. Brent crude for August delivery, meanwhile, touched a three-month high of $107.88 and settled at $107.72, up $2.18.

Oil has been on a fairly strong, bullish trend over the past two weeks, according to Addison Armstrong, senior director of market research at energy investment advisors Tradition Energy in Stamford, Conn.

"(The) unemployment report was just another in a recent series of good macro-economic data about the U.S. economy, which also helps support the view that demand for oil will increase," Armstrong told the Herald.

The job growth suggests a stronger economy makes it more likely the Federal Reserve will slow its bond purchases, which have kept interest rates low, boosting investments such as stocks and oil.

In Egypt, meanwhile, protests over the ouster of Egyptian president Mohammed Morsi turned violent.

Those headlines also helped to support the bullish momentum, Armstrong said.

Egypt is not an oil-producer, but its control of the Suez Canal, one of the world's busiest shipping lanes, gives it a crucial role in maintaining global energy supplies.

But, Armstrong added, "I don't think professional traders have any expectation of serious disruption of oil from the Middle East because of the potential closure of the Suez Canal."


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The Ticker

Written By Unknown on Jumat, 05 Juli 2013 | 20.25

Central banks send signal on interest rates

European central bankers broke new ground to protect their economies from a U.S.-led surge in bond yields, indicating they will keep benchmark interest rates low for longer than investors bet.

With rising market borrowing costs posing fresh threats to weak expansions, Bank of England Governor Mark Carney and European Central Bank President Mario Draghi gave greater clarity over their monetary policy thinking in the hope financial markets will correct.

European Central Bank President Mario Draghi said, "It is important to acknowledge that there are limits to what monetary policy can achieve."

The pound and euro slid against the dollar, while bonds and stocks rose as both officials used rhetoric to distance themselves from Federal Reserve Chairman Ben Bernanke's signal that the U.S. is preparing to start unwinding its $85-billion-a-month bond-buying program later this year.

Zynga lure$ CEO from Microsoft

Struggling Web game maker Zynga gave new CEO Don Mattrick a $5 million signing bonus and stock awards valued at $40 million to lure him away from his previous job overseeing Microsoft's Xbox console for video games.

Mattrick's compensation package also includes a $1 million annual salary and a guaranteed bonus of about $1 million this year, according to a regulatory filing.

Security hole puts 99 percent of 
Android's 900 million phones at risk

Mobile security startup Bluebox Security has unearthed a vulnerability in Android's security model which it says means that the nearly 900 million Android phones released in the past four years could be exploited, or some 99 percent of Android devices. Bluebox intends to detail the flaw at the Black Hat USA conference at the end of this month, but in the meanwhile it's written a blog delving into some detail.

TODAY

 Labor Department releases employment data for June.

 FORGE Worldwide adds Amanda Hines, left, to the new position of account supervisor. Hines will take on responsibility for several agency accounts including Rockland Trust and Spaulding Rehabilitation Network. Hines joins the agency from Roundarch Isobar in Boston where she spent two years as a senior account executive.


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Dinner-to-go from work is easily done

When Kelly Schaefer's five male friends hired a personal chef to cook for them once a week, passing along his recipes and prepping the ingredients for them as he went, Schaefer saw them transformed into "gourmet chefs" with very little effort.

"I wanted to see how I could do that for the everyday person, without the cost of hiring a personal chef," she said.

So Schaefer, 27, teamed up earlier this year with fellow Harvard Business School student Heidi Kim and founded Easily to deliver ready-to-cook meal kits to companies for employees to take home without ever having to stop at the grocery store.

"We were often talking about issues of work-life balance, especially for women, and thinking about our futures as professional women and, one day, as mothers," said Kim, 25. "We thought this would allow us to impact the lives of people juggling careers and home life."

The startup accelerator and competition MassChallenge thought so too and chose Easily as one of 128 finalists out of a field of 1,200 entrants to compete for 
$1.3 million in prizes.

Using about $20,000 from an HBS grant and an International Business Model Competition in which they placed third out of 1,300 teams, the two hired a chef and enlisted a core team of volunteers: a CTO, a COO and an engineering intern to build their online platform. Together, they expect to officially launch their program in two to three weeks with two companies.

People will order in the morning at eatingeasily.com, and the meal kits, which cost between $10 and $15, will be delivered to their offices by 4 p.m.

Samplings from Easily's still-evolving menu include panko-crusted salmon with asparagus and Parmesan, flank steak in a smoky marinade with minty cous cous, and manchego mushroom quesadilla with summer corn and tomato salad.

"Part of the challenge has been dumbing down delicious meals so all you have to do is enjoy them," Kim said. "Kelly and I love to eat but aren't the best of cooks, so if it passes the test with us, that's a success."


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Asian markets up on Europe, US policy optimism

BANGKOK — Optimism that easy European and U.S. monetary policy will continue boosted Asian stock markets Friday as investors awaited a key American jobs report later in the day.

The prospect of continued monetary stimulus helped offset worries earlier in the week of a Chinese slowdown, European debt woes re-emerging and disruption of energy markets due to the military ouster of Egypt's president.

Hong Kong and Taiwanese stocks posted the biggest gains in morning trade and most other major indexes were in positive territory after the European Central Bank kept its policy interest rate at a record low to combat a persistent recession and its President Mario Draghi said the rate will remain there "for an extended period of time."

The European statement plus indications that the U.S. economy is growing — but probably not fast enough for the U.S. Federal Reserve to rush into tapering off its purchases of $85 billion in bonds each month to keep interest rates low — boosted markets that had been spooked in recent weeks at the prospect of such stimulus ending.

Tokyo's Nikkei 225 was up 1.3 percent to 14,194.39. Hong Kong's Hang Seng added 1.4 percent to 20,753.62 and Taipei's TAIEX was up 1.4 percent to 8,003.77. Sydney's S&P/ASX 200 edged up 0.7 percent to 4,829.10. Seoul's KOSPI was in negative territory, edging down 0.1 percent to 1,837.32.

The Asian gains followed a strong rally in Europe that was sparked by the ECB's statement and the Bank of England's announcement that speculation it would raise rates was unwarranted.

Britain's FTSE 100 index jumped 3.1 percent to close at 6,421.67 while Germany's DAX rose 2.1 percent to 7,994.31. France's CAC 40 gained 2.9 percent to 3,809.31. Wall Street was closed Thursday for the Independence Day holiday.

Investors were also waiting for a U.S. government jobs report due Friday. Earlier in the week, Wall Street rallied after ADP, a payrolls processor, said that businesses added more jobs last month than analysts had expected. If the U.S. government confirms that Friday, it offers hope that the American recovery is continuing.

The strength of the jobs report may also offer clues to what the Federal Reserve will do next.

Mike McCudden, head of derivatives at Interactive Investor, noted that while physical exchanges were closed in the U.S. on Thursday, futures were still trading, and they indicate Wednesday's rally could continue, with Dow Jones Industrial Index futures now trading above 15,000. The index closed at 14,988.50 Wednesday.

"Whether this can be sustained will clearly be reflected by what's happening on a global basis," he said in a market commentary. "The situation in Egypt remains hugely sensitive, whilst resurgent eurozone woes could knock sentiment."

The price of oil this week passed $100 per barrel due to events in the Middle East: Egypt's military overthrew Mohammed Morsi, the country's first democratically elected president, after he defied calls to resign despite the demands of millions of protesters.

Egypt is not an oil producer but its control of the Suez canal — one of the world's busiest shipping lanes, which links the Mediterranean with the Red Sea — gives it a crucial role in maintaining global energy supplies.

High energy costs act as a drag on economic growth, but oil has eased somewhat from its Wednesday highs and on Friday was down 18 cents to $101.06 in electronic trading on the New York Mercantile Exchange.

In currencies, the euro was down slightly at $1.2899. The dollar rose to 100.28 yen from 100.23 yen late Thursday.

____

Toby Sterling in Amsterdam contributed to this report.


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China says private banks possible

BEIJING — China on Friday promised sweeping changes to its state-run banking system — including allowing the creation of private lenders — to support its credit-starved entrepreneurs and curb what regulators worry are growing financial risks.

Analysts including the World Bank say an overhaul of a Chinese banking system that lends little to the private sector is urgently needed to keep economic growth strong. Communist leaders who took power last year have promised to support entrepreneurs who generate China's new jobs and wealth, but have yet to make significant changes.

Friday's statement outlined an array of areas where Beijing is promising action but gave no details or a timetable.

In a joint announcement, the central bank and banking regulators repeated earlier pledges to make interest rates and other aspects of banking more market-oriented — a move analysts say is required to channel more credit to productive activities. They pledged to increase lending to small and medium-size companies.

"We will make attempts to allow private capital to initiative the setup of financial institutions including banks," the statement said. It gave no indication how that might take place.

Such a change will be politically fraught because China's financial system is the ruling Communist Party's most powerful tool in controlling the economy and supporting politically favored state industry.

"We do not think this will lead to a significant near-term change in the banking sector, but we do view it as a step in the right direction," said Nomura economist Zhiwei Zhang in a report Friday.

The leadership is not expected to make major policy changes until after a party meeting in the autumn to decide on long-range strategy.

Friday's announcement comes amid signs China's lackluster recovery from its deepest slump since the 2008 global crisis might be faltering.

Economic growth decelerated to 7.7 percent in the first quarter from 7.9 percent the previous quarter. May retail sales fell short of forecasts and export growth slowed. A survey by HSBC Corp. showed June manufacturing activity fell to a nine-month low and was contracting.

Forecasts call for growth this year of 7.5 to 8 percent, barely half of 2009's explosive 14.2 percent. Reformers warn it could fall as low as 5 percent by 2015 without drastic changes.

"The financial system is safe and sound overall, but the problem of capital misallocation still exists and is not in alignment with the need for economic restructuring," the government statement said.

The proposed changes were meant to "better embrace the market's fundamental role in allocating resources" and "mitigate financial risks," it said.

The latest promise of changes came as Chinese financial markets were recovering from a credit shortage that caused a spike in interest rates paid by banks for loans from other institutions. The crunch eased after the central bank injected money into that market but analysts expect credit to be scarcer than it was previously.

The central bank is trying to cool a credit boom that it worries might run out of control. Credit grew 15.8 percent in the five months through the end of May, well above the central bank's target for this year of 13 percent.

The central bank and the bank regulator also said they will tighten control on some banking activities to reduce risk. That includes limiting use of "wealth management products" — bundles of credit card and other debt sold by banks to investors who want a higher return on their savings.

Financial analysts worry such products might be too risky for small savers. Regulators worry they allow banks to shift some of the debts they are owed off their books, allowing them to lend more and evade government-imposed credit limits.

Friday's statement promised to limit banks' use of wealth management products and prohibit them from charging hidden fees.

Earlier Friday, a deputy finance minister said the government needs to stay alert to the financial risks of companies set up by local governments to invest in building highways and other infrastructure.

A rise in debt owed by such companies as part of Beijing's effort to fend off the 2008 global crisis by pumping up infrastructure spending has fed concern state banks might face a wave of defaults. Government auditors have said potential risks can be controlled.

"We admit candidly that we still face challenges," said Zhu Guangyao, a deputy finance minister, at a government briefing. "We need to stay alert to the risks but we also are confident in the general situation."


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Mass. levied $26M in securities fines in FY13

BOSTON — Massachusetts Secretary of State William Galvin says his office imposed $26 million in fines for violations of security laws in the budget year that ended June 30.

In addition to the fines, Galvin said Wednesday that the Massachusetts Securities Division ordered $13 million in restitution to investors who were hurt by illegal actions. He said many of those were seniors.

The fines included a penalty imposed in March against Deutsche Bank Securities and stemmed from conflict of interest charges over the structuring and sale of debt obligations.

Galvin said money collected as a result of the fines is deposited in the state's General Fund.


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The Ticker

Written By Unknown on Kamis, 04 Juli 2013 | 20.25

Expansion at Patriot Place

The Kraft Group has secured approval for an expansion at Patriot Place that would add a 122-room hotel, quick-service restaurant and CVS to the Foxboro shopping center next to Gillette Stadium. There's no word on a construction timeline or cost of the project endorsed by the Foxboro Planning Board last week.

The development will replace 600 parking spaces between the North and South Markets of Patriot Place, which opened in 2007 and features 1.3 million-plus square feet of stores, restaurants and entertainment venues.

Unemployment rate up in region

The unemployment rate in New England ticked up in May but remains considerably lower than the national rate. The New England Information Office of the U.S. Bureau of Labor Statistics said yesterday the rate for the six-state region was 6.9 percent, up from 6.8 percent in April. A year ago, the rate in New England was 7.3 percent. The national unemployment rate for May was 7.6 percent.

Rhode Island and Connecticut had the highest jobless rates in the region in May, 8.9 percent and 8 percent, respectively. Maine's rate was 6.8 percent, Massachusetts' was 6.6 percent, New Hampshire's was 5.3 percent and Vermont's was 4.1 percent.

Oil prices highest in 14 months

The price of oil rose to its highest level in 14 months yesterday on concerns about possible disruptions to Middle East supplies and signs of an increase in U.S. demand for fuel. U.S. benchmark oil gained $1.64 to $101.24, its highest close since May 3, 2012. Brent crude, which is used to price oil used by many U.S. refineries to make gasoline, rose $1.76 to finish at $105.76.

TODAY

  • U.S. stock and bond market is closed for Independence Day.
  • European Central Bank's governing council meets to set monetary policy for the eurozone.

TOMORROW

  • Labor Department releases June employment data for June.

THE SHUFFLE

  • Cherrytree Group, a diversified real estate services company headquartered in Newton, has named Melina Ambrosino, left, as operations manager/tax credit professional. In this dual role, Ambrosino oversees operations of the company, working with all aspects of the various tax credit incentive programs in Massachusetts. Her primary focus since joining the Cherrytree Group has been on the Massachusetts Brownfields Tax Credit program.

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Upbeat US jobs report buoys Asian stocks

BANGKOK — Encouraging news on the US economy boosted most Asian stock markets Thursday as investors followed Wall Street's lead in shrugging off political turmoil in Egypt and worrying developments in Europe's debt crisis.

Hong Kong's Hang Seng led the modest rally, jumping 1.8 percent to 20,508.02 after reports that fewer Americans sought unemployment benefits last week and ADP, a payrolls processor, said that businesses added more jobs last month than analysts had expected.

China's Shanghai Composite rose 1 percent to 2,013.49. Australia's S&P/ASX 200 was up 0.9 percent to 4,786.60. Jakarta's JSX was up 1.3 percent to 4,638.11 while South Korea's Kospi edged up 0.3 percent to 1,830.52.

The employment news, added to a muted report on U.S. manufacturing growth, was good enough to restore confidence that the American economic recovery s is on track — but probably not strong enough yet for the Federal Reserve to pull back on its stimulus program.

With Wall Street closed on Thursday for the Independence Day holiday, investors will be watching the U.S. government's jobs report Friday in hopes of figuring out what the Federal Reserve will do next.

Over the past few weeks, markets have sputtered amid speculation that the Fed might taper off its policy of buying $85 billion in bonds every month to keep interest rates low and encourage spending.

"We have had a period of extreme volatility, and now we have some settling going on," said Lorraine Tan, director at Standard & Poor's equity research in Singapore. "I think there's a realization that the reaction may have been overdone."

Tokyo's Nikkei 225 bucked Thursday's trend, edging down 0.1 percent to 14,046.85. Taiwain's TAIEX was also nearly flat, up 0.1 percent to 7,914.35.

Asia's mild rally came after Wall Street also entered positive territory, despite Egypt's political crisis and worries over Europe's dormant debt crisis erupting again.

In Europe, stock markets slumped as Portugal's government teetered on the edge of collapse. Investors worried about the future of the bailed-out country and its efforts to get a handle on its debt after two Cabinet members quit.

Investors around the world were also keeping a close watch on the oil price after Egypt's military overthrew the country's first democratically elected president, Mohammed Morsi, who had defied calls to resign despite the demands of millions of protesters.

Egypt is not an oil producer but its control of the Suez canal — one of the world's busiest shipping lanes, which links the Mediterranean with the Red Sea — gives it a crucial role in maintaining global energy supplies.

Benchmark crude for August delivery was up 7 cents to $101.31 a barrel in electronic trading on the New York Mercantile Exchange. The day before it climbed to nearly $102, its highest level in more than a year.

In currencies, the euro rose 0.2 percent to $1.2993. The dollar slipped to 99.75 yen from 99.97 yen.

____

Pan Pylas in London contributed to this report.


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On tape, Murdoch slams police investigation

LONDON — Media mogul Rupert Murdoch has been recorded saying wrongdoing by his British newspapers was "next to nothing" and apparently acknowledging that his reporters paid police officers for information.

In a tape published in transcript by the ExaroNews journalism website and broadcast Wednesday on Channel 4 News, Murdoch is heard saying, "it's the biggest inquiry ever, over next to nothing."

"It's a disgrace. Here we are, two years later, and the cops are totally incompetent," said Murdoch, who is executive chairman of News Corp.

The outlets said the tape was recorded during a meeting with journalists at The Sun newspaper in March. Murdoch told them: "We're talking about payments for news tips from cops: that's been going on a hundred years."

He also said it had been "a mistake" on the company's part to hand over so many of its files to police. He said the company was now insisting police obtained court orders before they could see documents.

Several Sun staff have been charged as part police investigations into phone hacking and bribery spurred by the revelation two years ago that Murdoch's News of the World routinely eavesdropped on the mobile phone voicemails of celebrities, politicians, royals and crime victims.

Murdoch told staff who have been charged that he would stand by them.

"I will do everything in my power to give you total support, even if you're convicted and get six months or whatever," he said.

Former staff of the News of the World, which Murdoch shut down after the hacking scandal erupted in 2011, also face trial, along with a number of police officers, prison guards and other officials accused of accepting bribes.

Murdoch has publicly apologized for phone hacking, which he has called "appalling," and News Corp. has paid out millions to settle lawsuits from scores of victims.

News Corp. said in a statement Thursday that it had cooperated fully with police and worked hard to "identify what went wrong, compensate the victims, and ensure the same mistakes do not happen again."

Responding to the tape recording, the company said Murdoch "has shown understandable empathy with the staff and families affected and will assume they are innocent until and unless proven guilty."


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Polish airline has more problems with 787s

WARSAW, Poland — Polish airline LOT has cancelled one trans-Atlantic flight and postponed another after technical problems on two of its Boeing 787 planes.

LOT spokeswoman Barbara Pijanowska-Kuras confirmed Thursday that a flight to Chicago was cancelled on Wednesday because of problems with the power system, while another to Toronto was postponed due to issues associated with tracking the plane.

She said Thursday that the problems were minor and not linked to the battery problems behind the global grounding of the 787 fleet earlier this year.

LOT has four 787s and was the first European airline to buy the plane.

However, the plane has proved something of a headache for the company. LOT is in talks with Boeing over how much it should be compensated for the grounding of the world's fleet.


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Oil near $101 amid Egypt unrest, stockpiles fall

The price of oil eased to below $101 a barrel Thursday after jumping higher on unrest in Egypt and signs of rising demand in the U.S.

By early afternoon in Europe, benchmark crude for August delivery was down 48 cents at $100.76 in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract gained $1.64 to $101.24, its highest close since May 3, 2012.

Nymex floor trading is closed Thursday for the Independence Day holiday.

Two events have propelled the price of oil higher in the past days: unrest in Egypt and a big drop in U.S. oil supplies.

Traders were worried that political upheaval in Egypt could slow the flow of oil from the Middle East to world markets.

Embattled Egyptian President Mohammed Morsi vowed not to give in to protesters' demands for his resignation, but was removed from office Wednesday by the country's armed forces and taken into custody.

Morsi was replaced by Adly Mansour, the chief justice of Egypt's Supreme Constitutional Court, who was sworn in Thursday as interim president.

According to military decree, Mansour will serve as Egypt's interim leader until a new president is elected. A date for that vote has yet to be set.

Egypt is not an oil producer but its control of one of the world's busiest shipping lanes gives it a crucial role in maintaining global energy supplies. The Middle East accounts for about a quarter of the world's crude oil output, or 23 million barrels per day. About 2 million barrels of that, or 2.2 percent of world demand, are transported daily through the Suez Canal, which links the Mediterranean with the Red Sea.

Much of that oil is headed to Europe, but a supply drop anywhere in the world leads to higher prices everywhere.

Experts said the ouster of Morsi reduced the risk of prolonged protests that would further destabilize Egypt. "That said, it is still too early to sound the all-clear," said a report from analysts at Commerzbank in Frankfurt.

"Morsi's followers from the influential Muslim Brotherhood are hardly likely to take the overthrow of their president lying down," the analysts said in a note to clients. "The supply risks are thus likely to lend continued support to oil prices, even though the important transport route through the Suez Canal has not been in any sort of danger so far."

In the U.S., the Energy Department reported Wednesday that crude supplies fell by 10.3 million barrels from the previous week, more than three times the drop that analysts had expected.

The drop was likely the result of reduced supplies from Canada because of a temporary pipeline shutdown, as well as increased demand from a BP refinery that restarted in Indiana.

Gasoline supplies fell as well, while analysts expected an increase. The drop in oil and gas supplies could be an indication that U.S. demand is rising.

Brent crude, which is used to set prices for oils used by many U.S. refineries, was down 65 cents to $105.11 on the ICE exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline was down 1.39 cents to $2.8243 per gallon.

— Natural gas fell 3.1 cents to $3.659 per 1,000 cubic feet.

— Heating oil retreated 1.49 cents to $2.9363 per gallon.


20.25 | 0 komentar | Read More

US trade deficit widens to $45 billion in May

Written By Unknown on Rabu, 03 Juli 2013 | 20.26

WASHINGTON — The U.S. trade deficit increased in May to the highest level in six months as a weak global economy depressed U.S. export sales while imports of autos and other nonpetroleum products hit an all-time high.

The trade deficit rose to $45 billion in May, up 12.1 percent from April's $40.1 billion imbalance, the Commerce Department reported Wednesday. It was the largest trade gap since November.

Exports slipped 0.3 percent to $187.1 billion as sales of American farm products dropped to the lowest point in more than two years. U.S. exports have been hurt by recessions in many European countries.

Imports rose 1.9 percent to $232.1 billion with nonpetroleum imports hitting a record high.

The trade deficit is running at an annual rate of $501.2 billion, 6.3 percent lower than last year's total of $534.7 billion.

A wider trade gap can restrain growth because it means U.S. consumers and businesses are spending more on foreign goods than U.S. companies are taking in from overseas sales. But economists noted that the wider deficit does show growth in the United States remains stronger than most other nations. That growth has helped fuel more spending by consumers on domestic and imported goods.

For May, exports to the 27-nation European Union were up 6.4 percent but over the past five months exports to this region are down 6.3 percent compared to the same period in 2012. Europe has been hurt by a prolonged debt crisis which has led to recessions in a number of countries.

The U.S. deficit with China jumped 15.6 percent to $27.9 billion in May, close to the all-time monthly high set last November. So far this year, the U.S. deficit with China, the largest with any country, is running 3 percent higher than last year.

The United States and China will hold high-level talks in Washington next week, seeking to resolve differences in such areas as cyber-security, theft of intellectual property and China's currency policies. U.S. manufacturers contend China is manipulating its currency to gain trade advantages.

Imports of foreign-made autos and auto parts jumped 3.1 percent to a record of $26 billion in May while petroleum imports were up 4.4 percent to $30.9 billion.

Exports of U.S.-made autos and auto parts also set a record in May of $13.1 billion but exports of farm products fell to $9.8 billion, the lowest level since September 2010 with shipments of wheat, soybeans and corn all down.

Most economists say trade was likely neutral in the April-June quarter after subtracting slightly from growth in the January-March quarter. The U.S. economy expanded at only a 1.8 percent annual rate in the first three months of the year, the Commerce Department said last week. That was much slower than its previous estimate of a 2.4 percent rate.

Economists expect economic growth remained tepid in the April-June quarter. Most estimates range between a rate of 1.5 percent and 2 percent. But economists believe growth will rebound somewhat in the second half of this year as the impact of the spending cuts and tax increases begins to wear off.

Slower growth overseas has weighed on U.S. manufacturing this year. But several reports show factories are starting to see some improvement. The Institute for Supply Management reported that manufacturing activity grew in June after shrinking in April. And the Commerce Department said orders to U.S. factories rose in May, helped by the third straight month of stronger business investment.

A housing recovery and steady job growth have helped offset the weakness in manufacturing. And the Federal Reserve last month said that it expects growth to strengthen in the next year.

Chairman Ben Bernanke said on June 19 that the Fed could scale back its bond buying later this year and end it next year if the economy continued to strengthen. His comments sent stocks falling and the yield on the 10-year Treasury bond jumped.

Stocks have since rebounded and the yield on the 10-year Treasury note has dipped since the middle of last week. Favorable reports on the U.S. economy have helped. And several Fed members have clarified that any tapering would hinge on economic improvement, not a specific calendar date.


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Survey: Mass. market scanners 100 percent accurate

BOSTON — A new state survey of supermarket price scanners has good news for price-conscious consumers.

The study by the Office of Consumer Affairs and the Division of Standards found 100 percent price accuracy between the prices advertised on store shelves and the prices that popped up on scanners located at registers and in aisles.

The survey follows a new state law signed by Gov. Deval Patrick last year designed to provide stronger consumer protections for shoppers while letting businesses use high technology scanner systems.

The law lets stores waive previous regulations, which had required individual sticker pricing for each item. Stores can now offer scanners as a means to check prices as long as they get approval from the Division of Standards first.

The new regulations took effect in January.

The surveyors participating in the study went to 18 store locations of five major supermarket chains — Stop & Shop, Hannaford's, Big Y, Shaw's and Price Chopper — in Massachusetts with a list of 10 popular barbecue items, including hamburger meat, hot dogs, buns, coleslaw, ketchup, and pickles.

Of five chains surveyed, Hannaford stores rang up the cheapest, with an average total price of $31.57. Shaw's supermarkets rang in with the highest total prices for the barbecue items, averaging $39.75.

Surveyors also checked two Market Basket locations for pricing accuracy and found no item pricing violations. They also found the stores had the lowest prices of the chains surveyed, but the retailer wasn't included in the official survey results because only two stores were visited.

Three or four stores were visited in each of the other chains.

Under the new law, prices must still be printed on itemized sales receipts.

The new regulations also say that if the amount charged at the register is more than the shelf price, consumers receive the item free if it costs less than $10, or receive $10 off the price of the item if it costs more than $10.

If a consumer is overcharged at a store using the old sticker item pricing system they should — under the law — get the item for the lower price.

Massachusetts is the last state to phase out the individual item pricing law.


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Avon selling jewelry unit back to former owners

NEW YORK — Beauty products company Avon is selling the jewelry business Silpada back to its co-founders and their families for $85 million, well below what it paid three years ago.

Avon announced earlier this year that it was reviewing strategic options for the business which sells sterling silver jewelry at home parties. Avon purchased Silpada Designs in July 2010 for $650 million.

Avon has been struggling at home and abroad as weak sales have hurt its profitability. The company has also wrestled with a bribery probe in China that began in 2008 and has since spread to other countries.

CEO Sheri McCoy is leading the company in a turnaround plan to cut costs, leave unprofitable markets and streamlining its operations with the goal of achieving revenue growth in the mid-single-digit percentage and $400 million in cost savings by 2016.

The families of Silpada co-founders Jerry and Bonnie Kelly and Tom and Teresa Walsh, through their company Rhinestone Holdings Inc., were the highest bidders in an auction process for the business.

Avon said in a regulatory filing on Tuesday that the transaction also includes up to $15 million more if Silpada hits certain earnings targets over the next two years.

Avon Products Inc. anticipates taking a charge before taxes of about $80 million in the second-quarter tied to the sale. It expects to use the sale's proceeds for general corporate purposes, including repaying outstanding debt.

Silpada said late Tuesday that Kelsey Perry and Ryane Delka, daughters of the Walsh and Kelly families respectively, will serve as co-presidents. Perry most recently served as Silpada's brand merchandising manager, while Delka was previously the company's vice president of sales, development and training.

Jerry Kelly will remain as CEO, and he and Tom Walsh will serve as co-chairmen. Bonnie Kelly, Teresa Walsh, Delka and Perry will also serve as board members.

Silpada has more than 300 workers in the U.S. and Canada. The company international corporate headquarters and distribution center will stay in Lenexa, Kan. There are currently no plans to move its Canadian headquarters in Mississauga, Ontario.

The deal is expected to close on Wednesday. Avon Products shares closed at $21.29 on Tuesday. They have slipped 13 percent since hitting a 52-week high of $24.53 on May 22. They traded as low as $13.70 last November.


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ADP Survey: US businesses add 188K jobs in June

WASHINGTON — A private survey shows U.S. businesses stepped up hiring last month, a hopeful sign for economic growth.

Private provider ADP says companies added 188,000 jobs in June. That's up from 134,000 in May, which was revised down just 1,000. The gain was the most since February and closer to the average of more than 200,000 a month that ADP reported from November through February.

Construction firms added 21,000 jobs, further evidence that the housing recovery is contributing to growth. And small businesses — those with fewer than 50 employees — created 84,000 jobs.

The ADP report is derived from payroll data and tracks private employment. It does not report government hiring. The survey has diverged at times from the government's more comprehensive monthly jobs report, which will be released Friday.


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Futures slide as hotspots overseas eclipse rebound

NEW YORK — U.S. stock futures slid along with global markets Wednesday as hotspots in Europe and the Middle East overshadowed positive economic signs at home.

The Dow Jones industrial futures fell 44 points to 14,817. The broader S&P futures lost 5 points to 1,602.20. Nasdaq futures fell 9.25 points to 2,914.

Oil prices are spiking above $100 per barrel as Egypt's army chief meets with top commanders to bring an end to the nation's political crisis. Egypt controls the Suez canal, one of the world's busiest shipping lanes for crude out of the region.

Islamist president Mohammed Morsi has vowed not to step down in the face of three days of massive street demonstrations calling for his ouster. At least 39 people have been killed since Sunday.

And financial markets in Portugal plunged Wednesday as the government neared collapse, with pressure growing on Prime Minister Pedro Passos Coelho to resign over massive budget cuts.

Two key ministers have already resigned and there are fears the country may reject austerity measures because the quality of life for citizens has eroded so severely.

Portugal's main stock index plunged 6.4 percent to 5,177 Wednesday. Another indicator of waning investor confidence in a country, the interest rate on Portugal's benchmark 10-year bond spiked 1.28 percentage points to 7.74 percent.

Developments in debt-plagued Europe and the potential for another major conflict in the Middle East eclipsed more positive employment data from the U.S.

Private provider ADP says companies added 188,000 jobs in June. That's up from 134,000 in May, which was revised down just 1,000.

It was the biggest gain since February and closer to the average of more than 200,000 a month that ADP reported from November through February.

And weekly applications for US unemployment aid fell to 343,000 last week, according to the Labor Department, a sign of steady hiring in the U.S.

The U.S. reported that its trade deficit widened to $45 billion in May, highest in 6 months, as auto imports reached record heights.

Trading will be truncated Wednesday due to the Fourth of July holiday. The stock market will close at 1 p.m. Eastern, and the bond market is also expected to close early.


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States join US antitrust review of airline merger

Written By Unknown on Selasa, 02 Juli 2013 | 20.25

DALLAS — The attorney general of Texas and counterparts in other states joined a U.S. Department of Justice review of the proposed merger between American Airlines and US Airways.

Tom Kelley, a spokesman for Texas Attorney General Greg Abbott, said Monday that Texas is leading a group of 19 states that have entered the federal antitrust review. He declined further comment.

It's not unusual for states to join a federal merger review. By doing so, officials can look out for their state's interests and take part in meetings and depositions conducted by the Justice Department.

The states and the airlines signed a confidentiality agreement covering the review.

American Airlines and US Airways Group Inc. declined to comment.

The companies announced in February that they planned to merge in a deal that would create the biggest airline in the world.

Much of the scrutiny of the deal has focused on Reagan National Airport just outside Washington, D.C. Members of Congress have raised concern that if combined, American and US Airways would control about 70 percent of the takeoff and landing slots, but the airlines have fought any suggestion that they should be forced to sell some slots to boost competition.

US Airways CEO Doug Parker, who will lead the combined company if the merger is approved, told a Senate panel last week that if the combined airline loses slots at Reagan, it will cut flights between the capital and smaller cities.

The possibility of such reductions could be reason for some states to join the Justice Department's review. Other states, including Texas, may want to take part because they are home to hub airports and other large facilities operated by American and US Airways. Some of those hubs could be redundant if the merger is approved.

American and US Airways say that they overlap on only 12 of roughly 900 nonstop routes where they compete against each other. However, the Government Accountability Office also looked at one-stop routes and concluded last month that the merger would reduce competition on more than 1,600 routes, while increasing it on 210 routes.

The airlines have argued that the merger will be good for consumers by creating a stronger competitor to United Continental Holdings Inc. and Delta Air Lines Inc., which grew through recent mergers to become the world's two biggest carriers.

American and parent AMR Corp. filed for bankruptcy protection in November 2011. A federal judge is scheduled to consider approving AMR's plan of reorganization, including the merger, on Aug. 15 in New York.


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Spain's jobless figure drops 4th month in a row

MADRID — Spain's Labor Ministry says the number of people registered as unemployed dropped for a fourth consecutive month in June with the total falling by 127, 248 as the summer tourist season generated more jobs.

The ministry said Tuesday the total number of people registered as jobless now stands at 4.76 million.

The news brought some cheer for a country stuck in recession and suffering a 27.2 percent unemployment rate.

The conservative government claims its austerity measures and reforms of the past two years are starting to work and that Spain should emerge from recession in the coming months.

The Labor ministry said that although June is traditionally a good time for employment, the latest figure was the best on record for that month.


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ARCP buying ARCT IV in $3.1B cash-and-stock deal

NEW YORK — American Realty Capital Properties Inc. is buying American Realty Capital Trust IV Inc. in a cash-and-stock deal valued at about $3.1 billion.

Shares of ARCP nearly doubled in premarket trading on Tuesday.

ARCP, a real estate investment trust, said that the deal — along with other recent transactions — will make it the second-biggest net lease REIT. After the transaction closes, ARCP will own 2,579 single tenant properties in 48 states and Puerto Rico.

Last month ARCT IV announced that it would pay $1.45 billion to GE Capital for properties leased mostly to restaurant chains like KFC, Burger King and Wendy's. The deal includes 986 net lease properties in 47 states.

In a separate deal, also in June, ARCP said that it would pay $807 million for 471 properties from GE Capital, which are mostly leased to operators of restaurants such as IHOP, Burger King and Wendy's.

In May, ARCP announced that it was buying fellow real estate investment trust CapLease in a deal the companies valued at about $2.2 billion.

In the ARCT IV transaction, each outstanding share of ARCT IV will be converted to the right to receive 2.05 shares of ARCP stock or $30 per share in cash.

Both companies' boards approved the deal, but it still needs approval from the companies' shareholders.

New York-based ARCP said that due in part to the acquisition, it is raising its 2014 adjusted funds from operations forecast to $1.19 to $1.25 per share. Its prior guidance was for 93 cents per share.

Funds from operations, or FFO, is a key measure of profitability for REITs that adds back items like amortization and depreciation to net income.

The buyout is expected to close by the third quarter's end.

ARCP's stock rose $13.53, or 91.4 percent, to $28.33 before the market open.


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US home prices rise in May by most in 7 years

WASHINGTON — U.S. home prices jumped 12.2 percent in May from a year ago, the most in seven years. The increase suggests the housing recovery is strengthening.

Real estate data provider CoreLogic said Tuesday that home prices rose from a year ago in 48 states. They fell only in Delaware and Alabama. And all but three of the 100 largest cities reported price gains.

Prices rose 26 percent in Nevada to lead all states. It was followed by California (20.2 percent), Arizona (16.9 percent), Hawaii (16.1 percent) and Oregon (15.5 percent).

CoreLogic also says prices rose 2.6 percent in May from April, the fifteenth straight month-over-month increase.

Steady hiring and low mortgage rates have encouraged more Americans to buy homes. Greater demand, a limited number of homes for sale and fewer foreclosures have pushed prices higher. Prices are still 20 percent below the peak reached in April 2006, according to CoreLogic.

Sales of previously occupied homes topped the 5 million mark in May for the first time in 3 ½ years. And the proportion of those sales that were "distressed" was at the lowest level in more than four years for the second straight month. Distressed home sales include foreclosures and short sales. A short sale is when a home sells for less than what is owed on the mortgage.

Home sales are expected to increase in the coming months. That's because the number of people who signed contracts to buy homes rose in June to the highest level since December 2006. There's generally a one- to two-month lag between a signed contract and a completed sale.

One worry is that higher mortgage rates could slow the housing recovery. Still, rates remain low by historical standards. And increases in rates could boost home sales. That's' because many Americans may act to lock in the lower rates before they rise further.

A survey by the University of Michigan released last week found more Americans believe it is a good time to buy a home because both rates and prices are just starting to rise.

Rates have been trending higher for two months. And the average rate on a 30-year fixed mortgage leapt to 4.46 percent last week, according to mortgage buyer Freddie Mac. That's the highest in two years and a point more than a month ago.

Mortgage rates surged after Federal Reserve chairman Ben Bernanke said last month that the Fed could scale back its bond buying later this year and end it next year if the economy continued to strengthen.

Economists say that higher mortgage rates are unlikely to stifle the housing recovery. A more critical issue is whether potential buyers can get loans. There are signs that banks have become more willing to extend mortgages.


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Urban-rural alliance breaks down on farm bill vote

DES MOINES, Iowa — For decades, country and city interests had come together every few years to pass the farm bill, a measure that provided billions of dollars in subsidies to farmers and businesses in rural areas and food stamp money for urbanites.

No more.

The recent defeat of this year's farm bill — traditionally a sturdy, albeit lonely pillar of cooperation in Washington — highlighted how the country-city political marriage became yet another victim of partisan politics in polarizing times. The divorce throws into doubt the future of sweeping agriculture and nutrition spending.

Here's how the breakdown of a longtime coalition happened: Newly emboldened conservative groups pressured rural-state Republicans — many representing agricultural districts — with radio ad campaigns to oppose the five-year $940-billion bill, calling its proposed cuts to food stamps too little. Hardly faultless, Democrats, whose districts mostly encompass urban areas home to food-stamp recipients, refused to budge on cuts they considered too deep. Each party was fearful of angering their core supporters.

It was the height of partisanship over a measure that long had been devoid of it.

"That kind of thing wouldn't have happened at another moment in time," said Rep. Allyson Schwartz, a Pennsylvania Democrat who opposed the measure.

Rep. Steve Daines, R-Mont., voted for it, and bemoaned the result of House failure to pass it: "Doing nothing is worse than doing something."

Traditionally, Democrats and Republicans have worked closely together to pass farm bills.

Long ago, conservative rural lawmakers whose numbers in Congress were shrinking became aware that they alone couldn't muster enough votes to pass a measure paying for farm programs. So they agreed to include food-stamp money in the farm bill in exchange for support from their more liberal urban peers.

It was a mutually beneficial relationship. Conservative lawmakers were mindful that the measures included subsidies for farm-growing regions home to their core constituents, while liberal lawmakers were keenly aware that they contained dollars for food assistance that largely went to their bedrock voters in big cities. Each party needed the other to pass the measure that melded both farm and food money, and it almost always passed with bipartisan support.

But this year, when House Speaker John Boehner urged lawmakers to support the bill and put it up for a vote, it failed to get enough support, shocking longtime congressional observers and lawmakers alike. Tea party-backed conservatives refused to budge in their demands for even deeper cuts to the food stamp program, which has doubled in cost over the last five years to almost $80 billion annually and now helps feed 1 in 7 Americans.

The House version already had proposed slashing the $955 billion version of the bill that the Democratic-controlled Senate had passed by $20.5 billion in food-stamp cuts. That wasn't enough for some Republicans and their allies, who were looking ahead to the 2014 midterm congressional elections and worried about the impact of supporting the measure.

"I can't imagine being a Republican and asking primary audiences for their vote when you just voted for this debacle," said Americans for Prosperity President Tim Phillips. "It's impossible to justify, no matter where you are from."

Lawmakers like Rep. Walter Jones, R-N.C., who voted for the $600 billion farm bill in 2008, were clearly mindful that they would be inviting this type of criticism if they backed this year's measure. The congressman, who often talks about his district's tobacco, cotton and soybean production, chose not to take that chance. He voted against the bill after Americans for Prosperity targeted him with radio ads and an email push to contact his office.

Jones explained his "no" vote this way: "At a time when America is over 16 trillion dollars in debt and running massive deficits, we simply cannot afford this."

Republican Rep. Phil Gingrey, who has represented rural Georgia during his decade in Congress, also voted against it. One of his advisers argued that the measure didn't do enough to benefit farming. But the adviser, Chip Lake, also noted the increased pressure from outside groups, saying, "That activity between the last farm bill and this farm bill has increased exponentially."

For example, the conservative group Heritage Action urged constituents to call lawmakers like Rep. Tom Latham, a 10-term Iowa Republican, to pressure him to oppose the measure. Latham, as a result, received calls from constituents angry about the bill's food-stamp spending. Latham aides said the calls frustrated the congressman. He had argued that, without the cuts, food-stamp spending would be unchecked.

If no bill passes, Congress would likely adopt a short-term resolution to continue spending at current levels.

Democrats, meanwhile, were fearful of backlash from liberals who warned them against voting in favor of deep food-stamp cuts.

"They are worried they will be challenged in a primary if they don't fight tooth and nail on food stamps," said Rep. Colin Peterson, a Minnesota Democrat and former Agriculture Committee chairman.

Since the vote, leading Republicans have said the days of binding food-stamps with agriculture programs should end.

"We should treat the food stamp program on its own, as its separate program," said Rep. Paul Ryan of Wisconsin, the budget committee chairman, who opposed the bill.

Should that happen, Republicans and Democrats alike say the outcome also bodes poorly for the future of passing farm and food-stamp measures — and appeasing each side's core supporters.

___

Associated Press writer Charles Babington in Washington contributed to this report.

___

Follow on Twitter: twitter.com/TomBeaumont


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Ford to fix throttle on older Taurus, Sable sedans

Written By Unknown on Senin, 01 Juli 2013 | 20.25

DETROIT — Ford has agreed to fix sticky throttles on nearly 468,000 Ford Taurus and Mercury Sable sedans.

Because of the company's decision, U.S. safety regulators have closed an investigation into the problem.

Last fall, the National Highway Traffic Safety Administration began investigating cars from the 2000 through 2003 model years. The safety agency and Ford received 100 complaints about throttles on cars with 3-Liter, four-valve Duratec V-6 engines.

The agency says Ford agreed to a "customer satisfaction campaign" and will fix problems for free.

Ford says the throttle cables can be damaged or disconnected during maintenance. Five crashes were reported, but no injuries.

Dealers will inspect the cables and add reinforcement to tabs that hold the cables in place. If the tabs are missing, the whole cable will be replaced.

NHTSA closed its investigation this past Wednesday, the agency said in documents posted Sunday on its website.

Ford says in a letter to dealers that they should replace throttle cables that have missing retention tabs. All the vehicles will get a reinforcement clip that will better hold the cables in place.

Ford was to mail letters to owners starting June 24, and dealers were told to repair vehicles even if the owners don't have the letters.

The Ford Taurus and Mercury Sable and are nearly identical cars. Ford ended the Mercury brand more than two years ago.


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Vatican monsignor questioned in corruption plot

ROME — A Vatican monsignor arrested in a 20 million euro ($26 million) corruption plot has been questioned by Italian magistrates for the first time and has asked for house arrest.

Attorney Silverio Sica says Monsignor Nunzio Scarano is not well at Rome's Regina Coeli prison and wants to await a decision on his fate at home.

Scarano was interrogated for some three hours on Monday by Judge Barbara Callari, who must decide whether to confirm his arrest.

Scarano was arrested Friday with two other people in an elaborate plot to bring 20 million euro from a Swiss bank account into Italy without reporting it to customs officials.

Sica said Scarano "recognized it wasn't licit," but acted to help out his friends.

Prosecutors have identified the friends as Italy's d'Amico shipping family.


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Bank of England's new governor starts work

LONDON — Canadian Mark Carney, the first non-Brit to run the Bank of England in its 319-year history, has started work amid hopes that he can help revive the economy.

Carney beamed as he arrived by underground before 7 a.m. on Monday. Looming on his agenda is a Monetary Policy Committee later this week. The nine committee members will discuss whether to expand a stimulus plan that has pumped 375 billion pounds ($579 billion) into the economy since 2009.

The economy is still struggling. It grew just 0.3 percent in the first quarter this year compared with the previous quarter.

The 48-year-old has been lauded for steering Canada through the 2008 financial crisis and for overseeing the fastest recovery of any G-8 country.


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Greek government, creditors to resume talks

ATHENS, Greece — Greece's international creditors are to resume talks in Athens for approval of the next installment of rescue loans, after a two-week hiatus which saw the near collapse of the coalition government.

Ministers responsible for reforms were meeting Monday ahead of talks with the representatives of the International Monetary Fund, European Central Bank and European Commission, known as the troika. At stake is approval for 8.1 billion euros ($10.6 billion) from the country's multi-billion bailout fund from other eurozone countries and the IMF.

Prime Minister Antonis Samaras' government nearly collapsed earlier this month after a small left-wing party pulled out of the coalition in anger over Samaras' decision to shut down state broadcaster ERT and fire its 2,700 employees. The closure was meant to meet targets for public sector staff cuts.


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Tribune to acquire 19 TV stations for $2.73B

CHICAGO — Tribune Co. said Monday that it reached a deal to buy Local TV Holdings LLC's 19 TV stations for $2.73 billion in cash, significantly boosting its television business as it looks to sell its newspaper operations.

Tribune currently owns 23 TV stations and cable network WGN America, along with the Chicago Tribune, Los Angeles Times and other newspapers. It says the deal will make it the country's largest commercial TV station owner with 42 stations.

Tribune Co. said it expects the deal to boost its profits immediately and result in more than $100 million in annual cost savings within five years. Local TV's holdings include stations in Denver, Cleveland, St. Louis and other major cities.

Meanwhile, the Chicago company said the increased scale will help it maximize its national and local advertising sales, while also giving it a larger footprint to distribute its video and digital content.

"This is a transformational acquisition for Tribune — it makes us the No. 1 local TV affiliate group in America, expands the distribution platform for our high-quality video content, and extends the reach of our digital products to new audiences across the country,"  Tribune Co. President and CEO Peter Liguori said in a statement.

Tribune Co. is trying to sell its newspapers to focus on its more profitable broadcasting operations. The newspaper sale is being done at the behest of a group of lenders that took over the Tribune as part of a bankruptcy reorganization.

The newspapers have been hurt by a shift that has driven more readers and advertisers to the Internet and mobile devices. The downturn in print advertising was one of the factors that caused Tribune Co. to file for Chapter 11 bankruptcy protection in 2008. It emerged from court oversight at the end of 2012.

Other traditional newspaper companies are also adding TV stations. Last month, Gannett Co., the publisher of USA Today, announced plans to buy TV station owner Belo Corp. for about $1.5 billion. If approved, the all-cash deal will make Gannett the fourth-largest broadcast group in the U.S.

Local TV is principally owned by private equity firm Oak Hill Capital Partners.

The deal, which remains subject to antitrust and Federal Communications Commission approvals, is expected to close by the end of 2013. Tribune Co. said it has received committed financing of up to $4.1 billion and expects the deal will be financed through a combination of debt financing and cash on hand.


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A taste of the real world

Written By Unknown on Minggu, 30 Juni 2013 | 20.25

Faced with a difficult job market and employers demanding more than a traditional skill set, entrepreneurial programs at colleges and universities have more value than ever, students, professors and officials say.

Dozens of student-founded companies take part in business incubators, accelerators and challenges organized by schools, including Harvard University, Emerson College and Babson College.

"I know I would not be this far without the program," said Emerson College senior Jon Allen, winner of this year's E3 Expo at Emerson. Allen is getting ready to launch his line of natural Shirley Temples.

Allen, like many who go through accelerator programs, started with an idea for a business and spent the next two semesters fine-tuning and perfecting it. While improving the business plan, the budding entrepreneurs get exposure to professionals who are able to offer advice about key business skills, such as marketing, presenting to investors and legal issues.

For many involved in these programs, the skills learned are just as important as any potential money students can win.

"It's this concept of getting direct and relatively easy access to resources they need," said Andrew Corbett, faculty director of John E. & Alice L. Butler Venture Accelerator program at Babson College.

"Even people that don't win end up doing great things," said Paul Bottino, founder and executive director of Harvard's I3 challenge.

James DiSabatino, owner of the Roxy's Grilled Cheese food truck in Boston, went through the E3 program when he was an Emerson student, but with a different business idea. Through the program, he figured out that his idea — an environmentally focused shuttle company — was not viable.

"That was the learning experience I needed," he said. "It helped me make those really essential mistakes first."

Sara Gragnolati of Boston was in Babson's accelerator program while pursuing her MBA and launched her soon-to-expand gluten-free food company Cocomama thanks to the program. She said the best part of the program was being surrounded by others who were also trying to start a business.

"When you're looking at and evaluating other business, it also teaches you about your own" she said. "You know people are giving you feedback because they want to help you."

Many students and professors recognize that a new kind of skill set is necessary post-graduation, regardless of the kind of job.

"The reality of working has changed," said Karl Baehr, director of the E3 program. "If you're going to prepare a student for a career today, they have to learn how to think entrepreneurially about their career."


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SF rapid transit talks break down; strike possible

OAKLAND, Calif. — Negotiators for San Francisco Bay Area Rapid Transit said they planned to show up for contract talks Sunday as union leaders warned workers will likely go on strike, which threatens to cripple the region's Monday morning commute.

Josie Mooney, a negotiator for the Service Employees International Union Local 1021, said there was "a 95 percent chance" that her union and members of the Amalgamated Transit Union Local 1555 would strike, after contract talks stalled Saturday.

"I'm afraid I don't see a way we will avoid a strike," she said after union leaders left the negotiating table Saturday, claiming they have met with BART's management for only 10 minutes in the past 36 hours. The two unions represent nearly 2,400 train operators, station agents, mechanics, maintenance workers and professional staff.

A walkout could derail the more than 400,000 riders who use the nation's fifth-largest rail system and affect every mode of transportation, clogging highways and bridges throughout the Bay Area. Such a strike could begin Monday after contracts expire at midnight Sunday.

BART spokesman Rick Rice said Saturday says that the agency planned to attend talks scheduled for 11 a.m. Sunday and hoped union representatives will be there.

"The Bay Area is counting on us to come together and meet reasonably in the middle," he said in a statement issued late Saturday. "There is still time. Let's get it done."

Mooney said earlier that the unions have no plans to meet with BART.

Negotiations between BART and the unions had intensified as Sunday night's deadline loomed. Two state mediators were facilitating the negotiations, with each side seated in separate rooms.

As the parties went back to the bargaining table Saturday in Oakland for anticipated around-the-clock sessions, both sides said they were far apart on key sticking points including salary, pensions, health care and safety.

The unions want a 5 percent annual raise over the next three years. BART said Saturday that train operators and station agents in the unions average about $71,000 in base salary and $11,000 in overtime annually. The workers also pay a flat $92 monthly fee for health insurance.

Rice said the latest proposal offered a 4- to 8 percent salary raise over the next four years, on top of a 1 percent raise employees were scheduled to receive Monday. The transit agency also said it offered to reduce the contribution employees would have to make to their pensions, and lower the costs of health care premiums they would have to pay.

On Friday, the ATU asked California Gov. Jerry Brown to issue a 60-day "cooling off" period if no deal can be reached by Sunday's deadline, but the SEIU and BART officials have urged Brown not to issue such an order.

The governor's office has declined to comment.

BART's last strike lasted six days in 1997. On Friday, other area transit agencies urged commuters to consider carpooling, taking buses or ferries, working from home and, if they must drive to work, to leave earlier or even later than usual.

"The bottom line is that a BART strike will be an absolute nightmare for everyone," said Jim Wunderman, president and CEO of the Bay Area Council, a business advocacy organization. "Our transportation system simply does not have the capacity to absorb the more than 400,000 BART riders who will be left at the station. There will be serious pain."


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Germany compares reported US bugging to 'Cold War'

BERLIN — A top German official accused the United States on Sunday of using "Cold War" methods against its allies, after a German magazine cited secret intelligence documents to claim that U.S. spies bugged European Union offices.

Justice Minister Sabine Leutheusser-Schnarrenberger was responding to a report by German news weekly Der Spiegel, which claimed that the U.S. National Security Agency eavesdropped on EU offices in Washington, New York and Brussels. The magazine cited classified U.S. documents taken by former NSA contractor Edward Snowden that it said it had partly seen.

"If the media reports are accurate, then this recalls the methods used by enemies during the Cold War," Leutheusser-Schnarrenberger said in a statement to The Associated Press.

"It is beyond comprehension that our friends in the United States see Europeans as enemies," she said, calling for an "immediate and comprehensive" response from the U.S. government to the claims.

According to Der Spiegel, the NSA planted bugs in the EU's diplomatic offices in Washington and infiltrated the building's computer network. Similar measures were taken at the EU's mission to the United Nations in New York, the magazine said.

Der Spiegel didn't publish the alleged NSA documents it cited or say how it obtained access to them. But one of the report's authors is Laura Poitras, an award-winning documentary filmmaker who interviewed Snowden while he was holed up in Hong Kong.

The magazine also didn't specify how it learned of the NSA's alleged eavesdropping efforts at a key EU office in Brussels. There, the NSA used secure facilities at NATO headquarters nearby to dial into telephone maintenance systems that would have allowed it to intercept senior EU officials' calls and Internet traffic, Der Spiegel report said.

Leutheusser-Schnarrenberger urged EU Commission President Jose Manuel Barroso to take personal responsibility for investigating the allegations.

The United States has defended its efforts to intercept electronic communications overseas by arguing that this has helped prevent terror attacks at home and abroad.

___

Frank Jordans can be reached at http://www.twitter.com/wirereporter


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Ecuador flower growers in Snowden shock

PIFO, Ecuador — Gino Descalzi used to fret about things like aphids, mildew and the high cost of shipping millions of roses a year from Ecuador to florists in the United States. These days he's worried about a 30-year-old former spy stuck thought to be in the transit area of the Moscow airport, and he can't believe it.

The Obama administration sent a thinly veiled economic threat to this South American country on Thursday when it indefinitely delayed a decision to eliminate tariffs on imports of roses worth about $250 million a year. The move created leverage over the leftist government seen as likeliest to grant National Security Agency leaker Edward Snowden political asylum that would protect him from U.S. criminal charges.

A week after Snowden began his stuttering, surreal flight across the globe, every passing day without him making progress toward Ecuadorean asylum makes the prospect look less likely. But the men who grow roses, asters and delphinia in the thin air of Ecuador's sun-soaked highlands are deeply concerned that, whatever happens to Snowden, they may turn out to be the most unlikely collateral damage from the geopolitical wrangle over his fate.

"This totally changes the financial panorama for our businesses and seriously affects the structure of our markets," said Descalzi, whose 280 employees produce some 22 million roses a year. "We're just shocked that an event so far from the political and economic life of Ecuador has caused so much commotion and worry."

The rose benefit for Ecuador had been widely expected to be approved. Any delay, they say, puts it into uncomfortably uncertain territory.

Even if Snowden never touches Ecuadorean soil and the U.S. cuts the 6.8 percent tariff on Ecuadorean roses, along with tariffs on frozen broccoli and canned artichokes, Ecuadorean flower growers are worried that the brouhaha has damaged Ecuador in the eyes of the United States, hurting its reputation for stability and reliability among the buyers who must decide between flowers from Ecuador and the already tariff-free blooms from its nearby market-dominant competitor, Colombia.

"This is not a mathematical equation," said Benito Jaramillo, the head of the Ecuadorean flower-growers' association. The graduate of Texas A&M and the University of Illinois at Urbana-Champaign employs hundreds of people growing "summer flowers" — a category of less-flashy blooms like hydrangeas and asters — on his farm about a half-hour from the capital, Quito.

"The point is that there are a lot of other factors that damage our industry's image and competitiveness in the mid-term," Jaramillo said.

Flowers are serious business in Ecuador.

The industry says it employs about 50,000 people on about 550 farms across the country and is indirectly responsible for 110,000 jobs, putting it after only oil, seafood and bananas in the ranks of the country's biggest exporters. It boasts that the long days, rich sunlight and cool nights of the Andean highlands mean the heads of flowers, particularly roses, grow fuller and richer than those from Colombia, which they scoff at as more suitable for grocery stores than florists.

Industry representatives spent around a year campaigning hard in Washington for the inclusion of cut roses under the Generalized System of Preferences, or GSP, a mechanism meant to encourage development in lower-income countries. A broader trade pact that covers a wide range of Ecuadorean products, the Andean Trade Preference Act, had been widely expected to expire next month. That now seems certain, not least because Ecuador declared Thursday that it was preemptively rejecting it.

Now, the flower industry has turned its focus to its own government, which it desperately hopes won't offer asylum to Snowden.

A small group of U.S. senators explicitly threatened trade retaliation if Ecuador harbors Snowden. And on Saturday, Vice President Joe Biden asked Ecuadorean President Rafael Correa to turn down any asylum request.

"We can't put the interests of 14 million Ecuadoreans at risk because of a 29-year-old hacker whom we don't even know," Descalzi said. "This gentleman doesn't mean anything to us."

The business impacts of the Snowden affair have infuriated Ecuador's main business groups, who accuse the government of putting ideology before commerce.

The decision to renounce the Andean Trade deal was "permeated by political and ideological motives," said Roberto Aspiazu, chairman of a coalition of Ecuador's largest industries. The country's business sector is calling on the government to manage the relationship with the United States "with the utmost care," he said.

The government said it planned to compensate business damaged by the loss of U.S. tariff benefits and has painted its decision in terms of the nation's sovereignty versus U.S. threats.

"But in any case, now they're wanting to destroy Ecuador for receiving an asylum application from Mr. Snowden and they are pulling out the rubbish that we spy as well," President Correa said. "If you behave badly we will take (the trade deal) away from you. Well, here you have the sovereign response from Ecuador, my comrades."

But business groups warned that any government compensation could be interpreted as a subsidy subject to international litigation.

When asked how he feels about the whole situation, Jaramillo, the head of the flower association, thought before responding with a single word: "frustrated."

"One isolated issue shouldn't create so much damage," he said.

_____ Gonzalo Solano contributed to this report.


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Federal marriage benefits? Not for everyone

WASHINGTON — Like other married couples, people in same-sex marriages are about to learn that the federal benefits and tax breaks associated with being married might not be all they're cracked up to be.

Social Security benefits for spouses can be generous, but only for couples with big disparities in their incomes.

Taxes are a decidedly mixed bag, and there are still a lot of unanswered questions for the Internal Revenue Service.

Many middle-income couples should get welcome tax breaks now that they can change their filing status from "single" to "married filing jointly." But those at the top and bottom of the income scale could face significant tax increases.

Low-income people also could lose safety-net benefits like Medicaid and the earned income tax credit if a spouse's higher income disqualifies them.


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