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Value shoppers turn to used cars

Written By Unknown on Sabtu, 20 Juli 2013 | 20.25

With used-car prices falling and the quality of late-model cars improving, buyers are now getting a lot more bang for their buck.

Recent redesigns, especially in the midsize- and compact-sedan segments, have left the used-car market full of vehicles that were on the cutting edge several years ago, but at lower prices now.

Those cars have helped to create "some of the best product we've seen in the industry in years" said Alec Gutierrez, an analyst for Kelley Blue Book. "These vehicles are significantly improved over the models they are replacing."

"If the new-car prices are out of your budget and you're looking to buy used to save a few dollars, used cars the past few years are really good products," said Richard Arca, used car analyst at Edmunds.com. "If you take a look now, the manufacturers made huge strides in improving their product" in the past few years.

To make the deal even sweeter, used-car prices are down 6 percent from their peak in May 2011. The average price for a used car at auction was $11,031 in June, according to Manheim, an auction company, and experts don't expect prices to rise soon.

"Prices will continue to soften at a faster rate," Arca said.

"Now is definitely as good a time as any" to buy a used car, Gutierrez said.

Analysts said the quality of used cars has been instrumental in keeping the entire auto sales business afloat.

"Nearly every vehicle in the industry has so significantly improved that it's helped to shore up the industry," Gutierrez said.

Here are some of the top used cars that have been dramatically redesigned over the past few years:

2011 Hyundai 
Sonata

Replacing the fifth-
generation Sonata introduced in 2005, the '11 was introduced to rave reviews. Kelley Blue Book called the stylish mid-sized sedan a "towering home run" in its review. The redesign brought an entirely new look to the car, along with value, quality and a world-class powertrain.

2011 Kia Optima

The previous iteration of the Optima, a bland, boring car with few attractive features, was replaced by this heavy-hitter. Packed with amenities, this mid-sized sedan comes with improved styling over older models and new (at the time) tech features, including Bluetooth connectivity, an iPhone audio input and a glove box that will keep drinks cool.

2012 Ford Focus

This compact got a new look in 2012, but also packs more quality, features and options. Also available as a 5-door hatchback for the first time, the Focus boasts a stronger unit-body structure and a completely retuned suspension. Premium comfort features include MyFord Touch infotainment and standard dual-zone climate control.

2011 Chevrolet Cruze

The Cruze marked the beginning of Chevy's turnaround, and for good reason. While not technically a redesign, the Cruze replaced the Cobalt in Chevy's lineup. The compact has an impressive 36 mpg, and the price to back it up. Superficially, the car is attractive inside and out.


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Wall Street shrinking tech giants’ share prices

The tech sector is fizzling as big-name companies continue to struggle on Wall Street as earnings reports come in lower than expected.

Microsoft fell the most in more than four years after the company wrote off nearly $1 billion on its new tablet computer and reported declining revenue for its Windows operating system.

The Surface RT, Microsoft's tablet, has not had close to the success that Microsoft had hoped, spurring the company to cut prices by $150. 
Microsoft dropped $4.04, or 
11.4 percent, to $31.40 after reporting its earnings late Thursday.

That's the biggest one-day decline since the stock slumped 11.7 percent in January 2009.

Google dropped after its revenue fell below analysts' forecasts, partly because the Internet search leader's ad prices came in lower than expected. The most significant factor was revenue from mobile ads, which still lags behind other Internet ads in terms of profit.

Google fell $14.08, or
 1.5 percent, to $896.60.

"You have a lot of companies that were priced for perfection," said Max Wolff, senior analyst & chief economist at Greencrest Capital. "Neither of them met expectations."

Despite the market's upswing this month, there has been a growing list of poor tech company results.
 Intel and eBay also reported weak results this week, and chipmaker Advanced Micro reported a second-quarter loss because of a worldwide slump in PC demand.

Apple and Samsung phone sales have slowed, largely because the market is already saturated with smartphone owners.


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Squantum home’s a day at the beach

If you want to feel like you're on vacation year round, this waterfront house for sale in the Squantum neighborhood of Quincy comes complete with deeded access to a private beach.

Built in 2008 by Realtor/owner Theresa Repoff, the three-bedroom single family at 173 Huckins Ave. in Squantum is about 100 feet from the ocean and has water views from most rooms. It's also one of nine neighboring houses that have deeded access to private Sunrise Beach.

The 3,100-square-foot home with Brazilian cherrywood floors throughout, a third-floor family room, three outdoor decks and a basement wine cellar is on the market for $1,195,000. The second-floor master bedroom and the entire top floor have unobstructed ocean views.

The house, which goes front to back from Huckins Avenue to Sunrise Road, has a three-vehicle garage underneath it, with doors opening out to both streets. It has bushes in front along with front, side and back lawns.

A granite paver walk leads to a covered porch and into a cherrywood foyer with a double-door closet.

To the left is a floor-through, recessed-lit living and dining area with crown molding and three large sets of triple windows with transoms above that bring in lots of light and have ocean views, although the house next door blocks sight lines. A gas fireplace with a granite surround separates the living and dining space. At the end of the dining area sit glass doors that lead out to a private rear deck that looks out to the beach.

The dining area segues into a recessed-lit kitchen with 25 white-painted beadboard-styled cabinets above and below greenish blue granite counters with a multicolored glass mosaic tile backsplash. There's a granite-topped central island with a four-burner Bosch stainless-steel gas cooktop. The refrigerator and dishwasher are also Bosch stainless-steel.

Also on this floor is a half bathroom with white marble floors and counters over an antique vanity.

The home's three cherrywood bedrooms are on the second floor, reached via a turning staircase.

The sunny master suite features a three-part window with unobstructed ocean views and glass doors out to a private deck. There's a large walk-in closet with built-in storage as well as a double-door closet. The en-suite ceramic-tiled master bathroom has a walk-in shower and double-sink vanity with creme marble countertops.

There are two other bedrooms on this floor — ideally sized for children — as well as another full ceramic-tiledx bathroom. Opposite the bath, behind a frosted glass door, is a laundry room with ocean views.

The entire third floor of the home is a cherrywood-floored family room, ideal for entertaining with its private outdoor deck with unobstructed ocean views. There's a vaulted ceiling here, lots of windows, a skylight and even a built-in electric fireplace.

The basement has a finished wine cellar and direct access to the garage. There's also a lot of extra storage space in the unfinished areas.

The home has two gas-fired heating and central air-conditioning systems.


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Arthur DeMoulas fits Market Basket to a T

Market Basket shoppers, workers and shareholders dodged a bullet Thursday when the grocery chain's board backed away from a proposal to fire CEO Arthur T. Demoulas, according to a former independent board member.

"There's no question in my mind that if they remove Arthur T. Demoulas as president, the value of the company will go down significantly," said Charles Roazen of Weston, who in June ended a 14-year tenure on the Tewksbury company's board. "He's an excellent operator. It would be a shame if they disrupted the culture of the company, which respects its employees ... (and) customers."

Market Basket took good advantage of a nose-diving real estate market to increase its store count and market share while remaining profitable, according to Roazen, who was elected to the board after a 1999 court order mandated three independent directors.

During a nearly 13-hour meeting Thursday in Andover, the current Market Basket board failed to act on an agenda item motioning for Demoulas' removal. Shareholders led by cousin Arthur S. Demoulas were hoping to wield new power after the June election shifted a board majority to their favor.

Arthur T. Demoulas, in a statement after the meeting, said he hoped to work constructively with the board going forward.

A spokeswoman for Demoulas had no further comment yesterday, and Arthur S. Demoulas, other shareholders and board members did not return calls for comment.

CEO since 2008, Arthur T. Demoulas is credited with increasing the 71-store chain's revenue from 
$2.48 billion in 2007 to 
$4 billion in 2012, when net income was $217 billion. And he remains well-respected in the industry, said Kevin Griffin, publisher of the Griffin Report of Food Marketing.

"He's knowledgeable, and he's a steward for a family business that has a model that works," Griffin said. "Profits are more than above average."

Employees' efforts on Demoulas' behalf — including petitions and newspaper ads — likely influenced the board, he said.

U.S. Rep. Niki Tsongas (D-Mass.) was pleased with the outcome: "... People travel from afar to take advantage of (Market Basket's) tremendous savings, the impact of which can't be understated in the daily lives of residents throughout the region. Market Basket has never stopped growing since its formative days in Lowell. ... All of this has been made possible under the leadership of Arthur T. Demoulas."


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Obama commends work of consumer protection agency

WASHINGTON — President Barack Obama is commending the work of a consumer protection agency created after the economic crisis.

The Consumer Financial Protection Bureau got its first permanent director this week after the Senate voted to install Richard Cordray after years of delay.

In his weekly radio and Internet address, Obama says consumers can go to the agency to "get some measure of justice" when financial institutions disregard the rules.

He says the bureau has addressed more than 175,000 complaints and has helped recover more than $400 million in refunds for consumers.

In the Republican message, Reps. Todd Young of Indiana and Tim Griffin of Arkansas are calling on the Democratic-controlled Senate to vote on bills passed by the House to delay requirements on individuals and businesses by Obama's health care law.

___

Online:

Obama address: www.whitehouse.gov

GOP address: http://www.gop.gov/


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Arts festivals drawing lots of business to Hub

Written By Unknown on Jumat, 19 Juli 2013 | 20.25

Officials plan to build on this summer's string of business-boosting arts festivals by bringing even more outdoor summer fun to downtown Boston and city neighborhoods next year.

"We absolutely want to keep what we have, but there's always room for expansion," said Chris Cook, director of arts, tourism and special events. "We're already looking at opportunities to layer in different arts experiences next year."

Cook pointed to the free, nine-day Outside the Box inaugural festival, which ends Sunday, as a model. The event features 200 performances and has attracted thousands of people daily to Boston Common and City Hall Plaza, despite this week's sweltering weather.

"The city needed it," said Ted Cutler, the festival's founder, adding with a reference to the April 15 bombing, "Since the marathon, there's been a cloud over the city. This helped lift it."

In addition to raising people's spirits with art, music and dance, Outside the Box has boosted sales at some local businesses.

Steve Heeley, CEO of Earl of Sandwich, Boston Common's only year-round restaurant, and Lindo DeFarias, manager of Sal's Pizza on Tremont Street, both estimated that sales have been up 50 percent since the festival began.

Rosemarie Sansone, president of the Downtown Crossing Business Improvement District, said she only hopes that future events will be more spread out across the city. And with next weekend's FIGMENT Boston, she'll get her wish. The event returns to the Rose Kennedy Greenway for the third year, bringing more than 100 interactive art projects, dance performances and music.


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Upscale units in Hub offer pedalling perk

Does watching the Tour de France make you want to jump on a bike?

Related Companies and Zagster, a Cambridge-based company that provides bicycles, have launched a bike-sharing program, making Related Companies the first real estate company to offer the pedalling perk.

Bikes will be located initially in 10 of Related's New York City and Boston properties — including the Hub luxury rental building One Back Bay.

Readily available bicycles offer a way to go out for appointments and errands as well as on social trips to a restaurant or to visit friends.

"Residents will be able to experience the ultimate in convenience while exercising, running errands and living green," said Daria Salusbury, senior vice president of Related, who leads the company's luxury residential leasing operations.

"Related understands the changing dynamics of today's urban resident, who is very interested in sustainable, convenient and efficient transportation," said Timothy Ericson, co-founder and CEO of Zagster. "By offering Zagster, Related can meet their residents' needs while providing Related a key differentiator in a highly competitive market."

The bike-share program continues Related's foray into groundbreaking advances in sustainability and lifestyle services.

"We see bikes as analogous to the pool or gym at these properties," he said. The benefit to the customer is that Zagster maintains the bikes and storage area.

Just as Zipcar has become a much-sought amenity for urban professionals looking for places to live, he thinks Zagster will influence people looking for apartments or office space.

"We think Zagster will be like Zipcar and become a factor in deciding where they live, work and visit," he said.

Ericson sees Zagster as complementary rather than competitive with city bike-sharing services, such as Boston's Hubway.

"We actually have more interest from clients in cities that have bike sharing programs like Hubway. Bike sharing systems are all about short trips that are one way. Ours are for longer trips, commuting, etc." Ericson said.

Zagster offers riders the Breezer Uptown, an award winning bike known for its lightweight yet durable construction, specifically designed for city riding. All bikes will be located on property in garages or parking structures.

Each bike also comes equipped with a basket so, Ericson said, "You can't go Thanksgiving shopping, but you can certainly do your daily shopping." With an attached flexible lock, riders can park their bikes wherever they want, allowing the ultimate in convenience.

Added Ericson: "We set it up to be completely hands off for the properties. If someone shows up and there is a flat tire, or someone hasn't returned their rental, they fill out an incident report and we go out and fix it."

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


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The Ticker

Detroit files for bankruptcy

Detroit yesterday became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.

A number of factors — most notably steep population and tax base declines — have been blamed on Detroit's tumble toward insolvency. Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million is struggling to stay above 700,000. Much of the middle class and scores of businesses also have fled the city, taking their tax dollars with them.

Mass. jobless rate climbs to 7 percent

The state's unemployment rate rose yesterday, further narrowing the employment gap between the state and the rest of the country.

Massachusetts added 2,800 jobs in June, but the unemployment rate rose to 7 percent, the Executive Office of Labor and Workforce Development said yesterday.

While the state unemployment rate remains below the national rate, the state's unemployment is only .6 percent less than the national rate, compared to 1.2 percent lower in January.

Senators make deal on student loans

Student borrowers will see interest rates reduced to levels near those that expired last month under a deal announced by Senate lawmakers yesterday, potentially ending a battle over college costs that had divided Democrats and threatened to leave students with sharply higher costs.

South Station to get new bar

Commuters in South Station hoping to do something other than eat in the food court and stare at the train schedule will finally get their chance.

Bar and restaurant chain Tavern in the Square will be opening an "airport style" bar in the center of South Station, according to restaurant management.

The 750-square-foot location will have televisions, roughly 40 seats ­— bar and table — and will offer 50 draft beers and a limited menu of Tavern's most popular items.

TODAY

 General Electric Co. reports quarterly financial results.

 Christine Ward, left, has been named director of operations for Raising A Reader Massachusetts, an early literacy nonprofit organization. Ward joined the organization in 2010 and continues to work in Operations and Human Resources, helping the organization expand across the state and double the size of the team.

 Intarcia Therapeutics announced the hiring of Dr. Eddie Li to the newly created position of vice president and global head of regulatory affairs. Li brings more than 20 years of experience in regulatory affairs to Intarcia.


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Boston Globe bidder files suit vs. ex-partner

Two media bigs who teamed up to try to buy The Boston Globe in 2011 are now engulfed in a long and pricey breach of contract dispute, as former Time Inc. CEO Jack Griffin is suing Orange County Register publisher Aaron Kushner for up to $10 million in New York Civil Supreme Court, according to court filings.

Griffin — now part of a local group comprised of cousins and former Globe owners Stephen and Benjamin Taylor hoping to buy the broadsheet — is accusing Kushner of stiffing him on payouts after his company, 2100 LLC, acquired the Orange County Register and six other newspapers last year.

Kushner, a former greeting-card merchant from Wellesley, first hired Griffin as a senior adviser at a rate of $600 an hour to consult on the group's possible acquisition of the Globe in June 2011, according to court documents.

The Globe deal never happened, but one year later Kushner's group bought Freedom Communications, which included the West Coast papers.

Griffin alleges the two agreed that he'd be appointed a director and officer, get a one-year consulting contract for $250,000 and a 3.449 percent stake in the company, which, based on the company's then-$5.8 million value, would be worth $200,000.

But six days later, 2100 revalued itself at $89 million and Griffin's share in the company was diluted to 0.225 percent, the lawsuit claims.

Griffin insists in the suit that Kushner relied on Griffin's "name, reputation and contacts" to execute the Freedom deal.

But Kushner's lawyer, Seth L. Levine, vowed to "vigorously" fight the claims.

"Mr. Griffin's lawsuit is frivolous and entirely without merit," said Levine. "His efforts to extract from 2100 Trust and Mr. Kushner an exorbitant sum which he never earned and to which he was never entitled is totally inappropriate."

A spokesman for Griffin said he was a "visible" member of the 2100 leadership team.

"Despite using Mr. Griffin's name, credentials and significant insights gained from working three decades at the highest levels in the publishing industry, 2100 Trust did not compensate Mr. Griffin nor did it grant him equity in the company or name him as a Director, according to its obligations and representations," said Al Minahan.

Judge Barbara Kapnick refused Kushner's motion to dismiss on all four counts earlier this year.


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US tech earnings weigh on markets

LONDON — Disappointing earnings from two U.S. technology giants weighed on global markets Friday after a stellar run that has seen Wall Street's main indexes post a series of all-time highs.

Stocks around the world have had a solid week, especially after U.S. Federal Reserve Chairman Ben Bernanke indicated that the central bank's monetary stimulus may remain in place for longer than many in the markets had been predicting.

As a result, investors were looking for a reason to book some profits ahead of the weekend and the earnings figures from Google and Microsoft gave them that opportunity, despite a solid report from General Electric.

Google's quarterly report showed its average ad rate fell from the previous year for the seventh consecutive quarter. In an unexpected turn, the decline deepened for the first time in a year.

Microsoft booked a large write-off to its Surface RT business after it slashed prices on the tablets to stimulate demand this week. Its quarterly earnings results also showed that Windows 8, an operating system designed to bridge the divide between PCs and tablets, has been so poorly received that it contributed to a revenue drop in the operating system software unit.

"Results from technology companies have generally been poor with eBay and Intel also missing expectations," said Fawad Razaqzada, technical analyst at GFT Markets. "Overall, however, most of the S&P 500 companies who have reported their results have beaten earnings expectations; though, one has to be wary of jumping to conclusions because it is merely early days still."

In Europe, the FTSE 100 index of British shares was 0.4 percent lower at 6,608, while Germany's DAX fell 0.4 percent to 8,307. The CAC-40 in France was down 0.4 percent at 3,910.

Wall Street was poised for a disappointing open with both Dow futures and the broader S&P 500 futures down 0.2 percent. Modestly better than expected earnings from GE did little to alter the cautious mood expected at the open.

Stock markets, particularly in the U.S., have had a bumper month following a bout of jitters prompted by uncertainty over when the Fed will start reducing its monetary stimulus.

The Fed has been buying $85 billion of financial assets a month in the hope of reducing long-term borrowing rates and shore up the U.S. economy. Bernanke has said that the so-called tapering will begin when a number of economic indicators point to a clear recovery path. The prospect that it may remain for longer has been greeted positively by investors who have grown used to the stimulus money floating around markets.

"Despite the weakness in stocks this morning, global equities are still on track to post a fourth week of gains, helping to underpin the generally bullish feeling in the market of late," said David White, a trader at Spreadex.

Earlier in Asia, markets closed mostly lower following the tech reports in the U.S. and amid worries over the Chinese and Japanese economies, the world's number 2 and 3.

Japan's Nikkei 225 shed 1.5 percent to 14,589.91 while Hong Kong's Hang Seng added just 0.1 percent to 21,362.42. Seoul's Kospi wavered between gains and losses, finishing 0.2 percent down at 1,871.41. China's Shanghai Composite index fell 1.5 percent to 1,992.65.

In currency markets, trading was steady with the euro flat at $1.3111 while the dollar was down 0.2 percent at 100.32 yen.

Meanwhile in the oil markets, the price of benchmark New York crude was 84 cents higher at $108.65 a barrel.

____

Cerojano contributed from Manila, Philippines.


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Suffolk prof relishes role as ‘explorer’ at visual frontier

Written By Unknown on Kamis, 18 Juli 2013 | 20.28

He used to be just Andrew Perlman, Suffolk Law professor, and he was fine with that.

But for the past month, he's been Andrew Perlman, Google Glass Explorer, and nothing has been the same.

There was the stranger who refused to walk in front of his technology-enhanced field of vision.

But most people, he says, are curious or excited. Walking into a cellphone store the other day, Perlman said, "I was like a rock star."

Perlman, director of the Institute on Law Practice Technology and Innovation, applied for one of thousands of spots in Google's Glass Explorer program in February, and was selected by Google in March.

"I had both personal and professional reasons," Perlman said. "I've always been fascinated by technology."

Professionally, Perlman plans to use the wearable device in his classroom to increase engagement from students. In the fall, shy or nervous students will be able to text questions to Perlman during lectures. Because the texts will pop up in Glass, Perlman will see them and be able to respond.

"Glass might be a useful complement to the usual way of interacting" in the classroom, he said. "I'm always interested in bringing technology into the classroom in ways I think can be helpful and keep students engaged."

Glass could also have uses in legal environments as well, such as in depositions or for taking notes during a trial, he suggested.

Meanwhile, Perlman said, he is looking forward to seeing what happens when he puts the device on one of his daughters during a gymnastics meet.


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Eyeing Google's vision

OK Glass, I see you.

The technological love-child of a smartphone and glasses with a bit of "Star Trek" mixed in, Google's Glass is the pinnacle of possibly-before-its-time, always connected, wearable technology.

Its role in society and our lives is not quite clear yet, but it sure is cool. It is on the faces of thousands of select Glass Explorers right now, one of whom was generous enough to let me try it out for a bit.

Packed in a frame not much larger than bulky sunglasses, the Bluetooth and Wi-Fi-enabled device feels like wearing a pair of glasses. The side unit, which includes essentially every important part of Glass, sits comfortably on the ear, despite its size.

Using Glass is surprisingly natural, after a couple minutes of adjustment time. Even when the display is on and active, the screen is in my vision if I want it to be and was easy to ignore. Google describes the view as looking at a 25-inch TV floating eight feet away, and that's about right. The speaker behind the right ear works well, but the touch panel menu takes a bit of use to adjust to.

The self-consciousness of using voice commands does go away, eventually. Triggering commands by saying "OK Glass," I was able to reply to an incoming text, take a picture and search the Web. Still, voice control was not as fluid and natural as it could be. Asking for "images" works fine, but "pictures" does not.

The camera likely will provide the most use for consumers. Given the popularity of Go Pro cameras and first person video, there is enormous potential. Google's original demo famously featured skydivers recording with Glass, but any parent sick of watching a dance recital through a phone will love the concept.

The most impressive feature right now is something long taken for granted: navigation. The screen shows a display similar to Google Maps on a smartphone, but the utility and ease that the map adjusts to your position and direction you face is simple, and brilliant.

There is an urge to actively use Glass constantly, but it excels when it passively sits on your head. Posting texts and calendar alerts via Google Now and breaking news alerts from news apps are all natural uses of the technology. The times when I felt slightly disappointed with Glass were when I was searching for a reason to use it. The future of Glass will depend largely on what apps are developed.


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Security experts to test phone anti-theft locks

SAN FRANCISCO — The top prosecutors in San Francisco and New York say they are bringing in state and federal security experts to test the newest anti-theft features designed to thwart the surge of stolen smartphones.

San Francisco District Attorney George Gascon and New York Attorney General Eric Schneiderman announced Thursday the security experts will be in San Francisco to test Apple's iPhone 5 with its activation lock and Samsung's Galaxy s4 with Lojack for Android.

Gascon says the experts will treat the phones as if they were stolen and try circumventing its anti-theft features to draw their own conclusions on its effectiveness.

Gascon and Schneiderman met in New York City last month with representatives from Apple, Samsung, Google and Microsoft, urging them to create a "kill switch" to render stolen smartphones inoperable. Almost 1 in 3 robberies nationwide involves the theft of a mobile phone, according to the Federal Communications Commission, which is coordinating the formation this fall of a national database system to track cellphones reported stolen.

"Together, we are working to ensure that the industry imbed persistent technology that is effective, ubiquitous and free to consumers in every smartphone introduced to the market by next year," Gascon and Schneiderman said in a statement.

Nearly 175 million cellphones — mostly smartphones — have been sold in the U.S. in the past year and account for $69 billion in sales, according to IDC, a Massachusetts-based research firm.

Lost and stolen cellphones cost consumers more than $30 billion last year, according to a study cited by Schneiderman in June. In New York, police have coined the term "Apple-picking" to describe thefts of the popular iPhone and other mobile products like iPads. Phone thefts comprise 40 percent of all robberies in New York City, authorities say.


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Bernanke comments keep markets firm

LONDON — Stocks continued to rise Thursday after the U.S. Federal Reserve said it will extend its stimulus policies if necessary, though Chinese markets were overshadowed by uncertainty over the country's economic outlook.

In prepared remarks to lawmakers in Congress, Fed Chairman Ben Bernanke said the Fed's timetable for reducing its bond purchases was not decided and that the central bank could even boost them if the economy fails to meet expectations.

The Fed wants to see substantial progress in the job market before scaling back its $85 billion a month in purchase of government bonds and other financial assets, he said.

Expectations the Fed might start tapering off its stimulus in September caused market jitters last month. But recent disappointing economic data has cast doubt over the likelihood of any major changes in the near future.

In Europe, the FTSE 100 index of British shares was up 0.4 percent to 6,597.03 while Germany's DAX was up marginally at 8,256.82. The CAC-40 in France edged 0.3 percent higher to 3,885.19.

Wall Street was expected to show little momentum on the open, with S&P 500 futures up 0.1 percent and Dow futures unchanged.

The focus later in the day will return to Bernanke, who will continue his testimony to the Senate.

Corporate earnings may also affect trading, with Google, Microsoft, Morgan Stanley and Verizon all due to announce results. In Europe, Nokia shares were down 4 percent after the handset maker reported disappointing second-quarter results.

In Asia, Japan's Nikkei 225 rose 1.3 percent to 14,808.50, its highest close in two months, but gains elsewhere in the region were much more modest. Australia's S&P/ASX 200 added 0.2 percent to 4,993.40. Shares in Indonesia, Malaysia, Thailand, India and Singapore were also higher.

China-related shares were mostly lower, reflecting gloom over news earlier in the week that the world's second-largest economy posted its second straight quarter of slower economic growth in April-June.

Hong Kong's Hang Seng shed early gains to fall into negative territory, losing 0.1 percent to 21,345.22. Benchmarks in mainland China and Taiwan also were lower. The Shanghai Composite dropped 1.1 percent to 2,023.40.

"The slowdown of growth in China is still the main concern," said Linus Yip, a strategist at First Shanghai Securities in Hong Kong.

In other markets, the benchmark crude contract for August delivery was down 22 cents at $106.27 in electronic trading on the New York Mercantile Exchange. The contract rose 48 cents on Wednesday.

The euro fell to $1.3111 from $1.3117 late Wednesday. The dollar rose to 100.03 yen from 99.62 yen.

___

Elaine Kurtenbach in Tokyo contributed to this report.


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US unemployment aid applications drop to 334K

WASHINGTON — The number of Americans applying for unemployment benefits fell 24,000 last week to a seasonally adjusted 334,000, a sign that steady job gains should continue.

The drop left unemployment benefit applications at the lowest level in 10 weeks, the Labor Department said Thursday. Some of the decline may have been caused by seasonal factors.

Still, the broader trend has been favorable. The four-week average, which smooths out fluctuations, fell 5,250 to 351,000.

"We believe labor market conditions remain on a gradually improving trajectory," said Laura Rosner, an economist at BNP Paribas.

Weekly applications data can be volatile in July. Automakers typically shut their factories in the first two weeks of the month to prepare for new models, which leads to a temporary spike in layoffs. But this year much of the industry has skipped or shortened the shutdowns to keep up with stronger demand.

Applications are a proxy for layoffs. They have declined 5 percent since January. The drop has coincided with stronger job growth.

Employers added an average of 202,000 jobs a month through the first six months of the year, up from an average of 180,000 in the previous six months.

In June, they added 195,000 jobs and revisions showed 70,000 more jobs were added in April and May. The unemployment rate stayed at 7.6 percent last month but is down from 8.2 percent a year earlier.

Despite the gains in hiring, economic growth has been weak. Most economists expect growth slowed in the April-June quarter to an annual rate of 1 percent or less, down from a tepid 1.8 percent rate at the start of the year. That would mark the third straight quarter of growth below 2 percent.

Many economists are hopeful that steady hiring will help spur faster growth in the second half of the year.

More than 4.5 million people received unemployment aid in the week ending June 29, the latest data available. That's down just 1,900 from the previous week. The number of recipients has fallen 21 percent in the past year.

Recent reports have painted a mixed picture of the economy. Americans bought more cars, clothes and furniture in June, but cut back retail spending almost everywhere else. Excluding purchases in the volatile categories of autos, gas and building materials, retail sales rose at the slowest pace since January.

Meanwhile, factory output grew in June for the second straight month, a separate Fed report said, a sign manufacturers are recovering from a slow start to the year.

More hiring could help the economy grow faster later this year by increasing the number of Americans earning paychecks. That could fuel more consumer spending and overall growth.


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Chrysler to roll out all-new midsize car next year

Written By Unknown on Rabu, 17 Juli 2013 | 20.26

STERLING HEIGHTS, Mich. — Chrysler will start selling a completely new midsize car during the first quarter of next year, company executives confirmed on Tuesday.

The replacement for the aging Chrysler 200 and Dodge Avenger is badly needed for the company to compete with the likes of the Toyota Camry and Honda Accord in the most popular part of the U.S. auto market.

Chrysler officials gave few details about the new car. It will be built at a factory in Sterling Heights, Mich., north of Detroit, where the 200 and Avenger are now built. The officials confirmed the timing of the car Tuesday while taking reporters on a tour of the factory's new paint shop.

Chrysler's current midsize cars were unveiled in 2006 and updated three years ago. Their designs are the oldest in the midsize car market, and buyers pay far less for them than nearly all competitors. The 200 and Avenger generally are noisier, get lower gas mileage and have worse rides than the competition, a bad combination in the hotly contested market.

The new car likely will be built with components jointly designed with Italian automaker Fiat SpA, which owns a majority stake in Chrysler.

Through June, Chrysler has sold just 136,000 200s and Avengers combined. While sales are up over last year, they're far below the top-selling cars in the midsize segment. For instance, Toyota sold almost 208,000 Camrys through June, while Honda sold 187,000 Accords. Crosstown rival Ford sold 161,000 Fusions and had to open a second factory to build them because of rising sales.

The new 898,000-square-foot paint shop in Sterling Heights is about 85 percent complete. When finished, it will be able to paint any Chrysler or Fiat vehicle except for big pickup trucks and large commercial vans, said John Powell, senior manager of the shop. The plant also is getting a new $165 million body shop.

The paint shop, along with upgrades to two nearby metal stamping plants, cost $850 million. It's scheduled to open early next year.

The investment is good news for the factory's roughly 2,600 employees. The plant was slated to be closed in 2009 when Chrysler emerged from bankruptcy protection but was saved when demand for midsize cars increased.


20.26 | 0 komentar | Read More

Markets buoyed by Bernanke testimony

LONDON — The mood in markets turned positive Wednesday after some dovish remarks from U.S. Federal Reserve chairman Ben Bernanke raised the prospect that the central bank's monetary stimulus may stay in place a little longer than expected.

In prepared remarks to lawmakers in Congress, Bernanke said the Fed's timetable for reducing its bond purchases is not on a "preset course" and that it could actually increase them if economic data disappoints. Specifically, he said the Fed wants to see substantial progress in the job market before scaling back the bond purchases.

Bernanke, who will take questions from lawmakers later, also said that the Fed's main interest rate, the Fed funds rate, will stay at its current very low levels after the monetary stimulus comes to an end.

The Fed is currently spending $85 billion a month buying financial assets in the markets in order to lower long-term borrowing rates and shore up the U.S. recovery.

In recent weeks, the expectation had been that the Fed might start the so-called tapering in September but a recent run of uninspiring U.S. economic figures have put that assumption into question. Bernanke's comments appeared to confirm the expectation that any change will depend on economic data and not be constrained by the calendar.

The response was relief in stock and bond markets, while the dollar fell.

"Presumably, he will remain 'on message' during the Q&A session, and confusion will not reign," said Joshua Shapiro, chief U.S. economist at MFR Inc.

In Europe, the FTSE 100 index of leading British shares was up 0.4 percent at 6,584 while Germany's DAX rose 0.6 percent to 8,248. The CAC-40 in France was 0.7 percent higher at 3,877.

Wall Street was now poised for a higher opening, with Dow futures up 0.1 percent and the broader S&P 500 futures 0.3 percent higher.

The dollar fell from earlier highs after Bernanke's testimony. As well as boosting stock markets, the Fed's monetary stimulus over the past few years has largely kept a lid on the dollar, so any prospect that the policy will remain intact has the potential to weigh on the currency. The euro was steady at $1.3147 while the dollar was 0.2 percent higher at 99.45 yen.

Earlier in Asia, the mood was fairly perky. China's Shanghai Composite Index fell 1 percent to 2,044.92 while Tokyo's Nikkei 225 gained 0.1 percent to 14,615.04. Hong Kong's Hang Seng rose 0.3 percent to 21,371.87 and Seoul's Kospi added 1.2 percent to 1,889.50. B

Oil prices recovered some earlier losses with the benchmark New York rate down on 27 cents at $105.73 a barrel.


20.25 | 0 komentar | Read More

House GOP seek delay in health care provisions

WASHINGTON — House Republicans, politically emboldened by President Barack Obama's delay of a key requirement of his health care law, are taking another run at scrapping his signature domestic policy.

The House has scheduled votes Wednesday to delay the law's individual and employer mandates, the 38th time the GOP majority has tried to eliminate, defund or scale back the program since Republicans took control of the House in January 2011.

The votes are a chance to score political points and highlight public skepticism over the law. The legislation is going nowhere in the Democratic-controlled Senate and the administration said emphatically Tuesday the president would veto the measures.

The goal of the health care law was to provide coverage to nearly 50 million Americans without health insurance in a massive overhaul of the current system. In a surprise move earlier this month, the Obama administration announced a one-year delay in requiring businesses with 50 or more employees to provide health coverage for their workers or pay a penalty.

Republicans seized on that decision as new evidence that the law is unworkable and should be repealed. The GOP also accused a Democratic president of favoring businesses over average Americans, who will still be required to carry health insurance starting next Jan. 1 or risk fines.

In advance of the votes, Speaker John Boehner, R-Ohio, stood on the House floor Tuesday and ridiculed Democratic comments that the law has been "wonderful" for the country.

"The law isn't wonderful, it's a train wreck. You know it. I know it. And the American people know it. Even the president knows it. That's why he proposed delaying his mandate on employers," Boehner said. "But it's unfair to protect big businesses without giving the same relief to American families and small businesses."

The House will vote on two bills: one by Rep. Tim Griffin, R-Ark., to implement the president's one-year delay in the employer mandate, and another by Rep. Todd Young, R-Ind., to delay the individual mandate. Although Griffin's bill would implement a policy the Obama administration has already announced, it's part of a broader GOP attack on the health care law with the goal of repeal.

The White House said in a statement vowing a veto that "it's time for the Congress to stop fighting old political battles and join the president" in boosting the economy and helping the middle class.

Rep. Steny Hoyer of Maryland, the No. 2 Democrat in the House, defended the administration's decision to delay the employer mandate, arguing it only affects a small number of businesses while ensuring that those affected have the necessary information. He said the individual mandate is more straightforward in its implementation.

"I'm not surprised the Republicans continue to want to repeal the Affordable Care Act because that has been their position all along, from the very beginning," Hoyer told reporters Tuesday. "They have no alternative. ... Republicans have no alternatives and as a result I think this is just more of the same in terms of their opposition. Are they going to make some political hay out of it. They are going to try."

In the days leading up to the vote, the National Republican Congressional Committee, which helps elect GOP candidates, has issued a flurry of news releases calling on Democratic incumbents to vote for a delay in the individual mandate and posing the question "Big business got a break from Obamacare, but what about families?"

"It was a shocking admission of defeat when the Obama administration delayed the disastrous law's employer mandate," the NRCC said in one release directed at Rep. Elizabeth Esty, D-Conn. "Though big business may be delayed from the onerous effects of Obamacare, middle-class families across Connecticut won't."

Stepping up the pressure, the House Ways and Means Committee will be holding a hearing on the administration's delay of the employer mandate, questioning J. Mark Iwry, a Treasury Department official and top adviser on health policy.

Under the health law, companies with 50 or more workers must provide affordable coverage to their full-time employees or risk a series of escalating tax penalties if just one worker ends up getting government-subsidized insurance. Originally, that requirement was supposed to take effect Jan. 1. It will now be delayed to 2015.

___

Associated Press writer Ricardo Alonso-Zaldivar contributed to this report.


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US builders start work on fewer homes in June

WASHINGTON — U.S. builders started work on fewer homes in June, mostly because apartment construction fell sharply. But applications for permits to build single-family houses rose to the highest level in five years, suggesting the housing recovery will continue.

Developers began construction at a seasonally adjusted annual rate of 836,000 homes in June, the Commerce Department said Wednesday. That was nearly 10 percent below May's total of 928,000, which was revised higher, and was the fewest since August 2012.

Most of the drop occurred in apartments, where starts fell almost 27 percent in June from May. Apartment construction is volatile from month-to-month.

Applications for permits to build single-family homes rose for the third straight month to 624,000, the highest since May 2008. That suggests home construction should rebound in the coming months. Overall permits fell to 911,000 in June from 985,000 in May, which was also revised higher.

Despite June's decline, builders started work on 10 percent more homes last month compared with a year earlier. And permits are 16 percent higher than a year ago.

"Today's drop in starts is more a pause in an otherwise improving trend," said Jonathan Basile, an economist at Credit Suisse.

The housing recovery has been helping support the economy at a critical time when manufacturing and business investment have stagnated.

Steady job growth and low mortgage rates have fueled more home sales. The increased demand, along with a tight supply of homes for sale, has pushed home prices higher. That's encouraged builders to start more homes and create more construction jobs.

Confidence among homebuilders rose this month to its highest level since January 2006, according to a monthly survey by the National Association of Home Builders. Measures of customer traffic, current sales conditions and builders' outlook for single-family home sales over the next six months vaulted to their highest levels in at least seven years.

Rising home prices also tend to make homeowners feel wealthier and more likely to spend. That drives more growth because consumers' spending accounts for roughly 70 percent of economic activity.

One concern is that mortgage rates have started to rise from their record lows and could spike further if the Federal Reserve slows its stimulus. Average rates on a 30-year mortgage rose to 4.5 percent this week, the highest in two years, according to mortgage buyer Freddie Mac.

Higher mortgage rates could slow the housing rebound, although most economists aren't concerned. They note that other factors are more important to the recovery, such as steady job gains, economic growth, and an increasing willingness among banks to lend.

Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB statistics.


20.25 | 0 komentar | Read More

Captain wants plea deal in Italian shipwreck case

GROSSETO, Italy — Lawyers for the captain on trial for the deadly shipwreck of the luxury cruise liner Costa Concordia are making a last-ditch attempt to reach a plea bargain in a case that could result in a long prison sentence.

Francesco Schettino's trial resumed on Wednesday in Grosseto, Italy, after a week's suspension due to a nationwide lawyers' strike. He's the only defendant in the trial.

One of his lawyers, Donato Laino, told reporters the defense would ask the prosecutors and judge to agree to a deal that would see Schettino plead guilty in exchange for a three-year, five-month sentence. Schettino risks up to 20 years, if found guilty on charges of manslaughter, abandoning ship and causing the shipwreck off the coast of Italy on Jan. 13, 2012 that killed 32 people.

Laino said the defense team was pessimistic. The bid is essentially a "formality since the prosecution will tell us 'no,'" the LaPresse news agency quoted the lawyer as saying. Prosecutors must give their assent to any plea-bargain arrangement.

It was not immediately clear when a ruling might come.

In May, a different judge in pretrial hearings rejected Schettino's first bid for a plea bargain.

But deals were approved for the five other defendants, including the helmsman, and other ship officers who were on the bridge of the ship with Schettino when it rammed a jagged reef while cruising too close to the Tuscan island of Giglio in the darkness of a winter evening. The five included an official of the Italian cruise company Costa Crociere SpA who was managing the crisis on land.

A judge is expected to rule on Saturday on those defendants' requests for lenient sentences, with the stiffest request for a prison term of about two years. In Italy, sentences are often suspended in the cases of first time convictions that result in punishments of a just a few years or less. That means Schettino could be the only Costa Concordia defendant who risks a long sentence.

Schettino calls himself an innocent scapegoat. Prosecutors have alleged he deliberately guided the ship dangerously close to the island's rocky coast in a publicity stunt.

Some of the 4,200 passengers and crew who were aboard the Concordia have said Schettino shouldn't be the only person being tried in the case.

"Frankly, I'm not angry with Schettino," said Gianluca Gabrielli, a 33-year-old Roman who is a surviving passenger. "I'm angry with the whole crew. They were smiling at the beginning, but when they realized that there was danger, they escaped, abandoning us," Gabrielli said outside the Grosseto theater, which is serving as a makeshift courtroom to allow more space for the public.

When the reef gouged a 70-meter-long (230-foot) gash in the side of the hull, seawater rushed in, causing the Concordia to quickly list badly, finally ending up capsized outside Giglio's tiny port.

Passengers described a chaotic evacuation that was ordered so late that many lifeboats on the listing side couldn't be launched. Many survivors, who jumped into the sea and swam to shore, have recalled their shock and amazement that Schettino was already on shore while others were still on the boat.

Most of the last survivors had to be lifted to safety from the capsized wreck by helicopters.

Also dismayed that Schettino was the sole defendant was a Moldovan dancer, Domnica Cemortan, who was on the bridge with the captain when the collision occurred. Cemortan said she was traveling as a passenger. But she has said that she had worked in the past as a hostess for the Italian cruise operator.

Cemortan told reporters she came to court Wednesday to formally ask to join hundreds of other survivors in civil actions attached to the criminal trial that could bring monetary compensation in case of conviction. "In my opinion, there cannot be only one defendant," Cemortan said. "It is strange to see only one person made to be the guilty one" in the courtroom.

Most of the seats in the theater Wednesday were empty, as it was widely expected that the hearing would be taken up by procedural matters.

Those issues include the judge's decision about which of some 150 witnesses will be called to testify and when. Testimony is unlikely to begin before September because courtrooms in Italy generally break for vacation in August.

The trial is expected to last for months, possibly until spring 2014, officials have said.


20.25 | 0 komentar | Read More

Goldman's profit doubles, helped by underwriting

Written By Unknown on Selasa, 16 Juli 2013 | 20.25

NEW YORK — Goldman Sachs says its second-quarter profit doubled, boosted by a surge in stock and bond underwriting.

Profit was $1.9 billion after payments to preferred shareholders, compared with $927 million a year ago.

Per share, those profits were $3.70. Analysts polled by FactSet had expected $2.83.

Revenue was $8.6 billion, up 30 percent from $6.6 billion a year ago. That also beat the expectations of analysts, who had forecast $8 billion.

In a statement, CEO Lloyd Blankfein called the quarter "solid," especially considering the "mixed economic sentiment."

Blankfein described the U.S. economy as improving, but said that Goldman would "continue to put a premium on disciplined risk management."

One way that Goldman makes money is from trading on behalf of institutional clients like pension funds and hedge funds. Revenue from the unit that trades on behalf of clients was up 11 percent.

Goldman said that market conditions became "more challenging" during the latter part of the second quarter "as interest rates and market volatility increased."

The stock market zig-zagged and bond prices fell in late May and through most of June because investors were trying to guess how long the Federal Reserve will continue its economic stimulus program. Goldman's revenue from trading mortgages and interest-rate products fell, though higher stock market values and increased activity in Asia helped the bank's stock-trading business.

Even with the fitful quarter, conditions were still calmer than in the year-ago period, when worries about Europe's debt woes were much more acute and Washington was deadlocked over budget issues. Besides, many investors see volatility as a reason to get into markets because there are more opportunities to trade.

The biggest increase in Goldman's earnings came from underwriting stocks and bonds, where revenue soared 45 percent.

The bank said it set aside more money for potential lawsuits and regulatory proceedings, but didn't give details. A former Goldman Sachs trader, Fabrice Tourre, went to trial Monday in New York, accused of selling mortgage-backed securities that he knew were going to fail. Goldman already settled related charged with the Securities and Exchange Commission in 2010, though it still faces private lawsuits.

Goldman's stock rose $1.52, or 1 percent, in pre-market trading to $164.52.


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European car sales down 6.6 percent in 1st half

PARIS — The European car industry showed further signs of distress Tuesday, as new data revealed car sales were down 6.6 percent for the first half of the year compared with the same period in 2012.

The European automakers' association, ACEA, said that there were 6.205 million new car registrations from January to June in the European Union, providing further grim reading for an industry that is struggling amid a deep recession and high unemployment.

The car industry also had its worst June in 17 years, with demand falling 5.6 percent from a year earlier to 1.134 million cars. The figures do not include Malta, for which there was no data, or Croatia, with just joined the EU.

Car registrations fell for 18 months to April, when extra working days created a small bounce. But the slide has since picked up again, with sales in May dropping by 5.9 percent on the same month last year to 1.042 million units, the lowest level for that month since 1993.

The European Union's economy is in recession again, with gross domestic product falling 0.1 percent in the first three months of this year. Unemployment stands at 11 percent. Europe's car industry has long struggled from overcapacity at factories and uncompetitive wages and labor laws, and the region's economic crisis has compounded these problems, as consumers put off big-ticket purchases.

To cope with the dwindling market in Europe, automakers have announced factory closures and put off new car launches in a bid for survival and to return their struggling European operations to profitability.

However, one surprising bright spot was Portugal, which, though mired in recession, showed a bump in sales of 2.9 percent for the first half of the year. It could be that after putting off buying new cars for so long, some people are now simply forced to get rid of their wrecks.

The market in Britain also seems to be gathering steam, up 10 percent for the year.

But most places clocked deep slides. For January through June, registrations fell 8.1 percent in Germany, 11.2 percent in France and 10.3 percent in Italy. Tiny Cyprus, which agreed to a bailout in March, saw the biggest slide, falling 42.7 percent this year.

Amid the poor performance in the first half, most carmakers saw significant declines in sales. France's PSA Peugeot Citroen was one of the biggest losers, with a 13.3 percent decline; Italian automaker Fiat dropped 10 percent.

But some luxury brands bucked the trend. Sales for Mercedes were up 3.5 percent, while Jaguars' rose 15.5 percent and Land Rovers' 10.2 percent. Honda also pulled away from the pack of everyday cars, posting a gain of 6.4 percent.


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Coca-Cola's profit dips as soda declines at home

NEW YORK — Coca-Cola's profit dipped in the latest quarter as the world's largest beverage maker sold less soda in its flagship North American market.

The Atlanta-based company, which makes Dasani, Powerade and Sprite, said Tuesday that global volume rose 1 percent in the quarter, helped by sales in countries including Vietnam and Indonesia. But in North America, it fell 1 percent, including a 4 percent drop in sodas.

The company blamed the performance on bad weather and challenging economic conditions.

Coke's shares fell more than 3 percent in premarket trading.

Coca-Cola has increasingly been relying on emerging markets for growth, given the expanding middle-class populations in such regions. Back at home, the company is battling a years-long decline in soda consumption and criticism that its drinks fuel obesity.

As Americans cut back on soda, the company has also been pushing drinks such as Dasani, Powerade and SmartWater. It said overall volume for uncarbonated drinks rose 5 percent in North America for the three months ended June 28.

Along with rival PepsiCo Inc., Coca-Cola is also working on coming up with a soda formula that uses a natural, low-calorie sweetener. The challenge is that such sweeteners often have a bad aftertaste. But executives at both companies have nevertheless expressed optimism that such a drink can help halt the industry's slide.

Volume for Europe also declined 4 percent for the period. The region encompassing Africa, the Middle East and Russia saw a 9 percent increase in volume. The Asia region rose 2 percent, with volume in China even from a year ago.

For the second quarter, Coca-Cola Co. said it earned $2.68 billion, or 59 cents per share. That's down 4 percent from $2.79 billion, or 61 cents per share, a year earlier.

Excluding one-time items, the company said it earned 63 cents per share, in line with Wall Street expectations.

Revenue fell to $12.75 billion, short of the $12.95 billion analysts expected, according to FactSet.


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Greece faces general strike over state job cuts

ATHENS, Greece — Unions opposing austerity measures in Greece staged their fourth general strike this year on Tuesday, as the government prepared to start axing public sector jobs.

Several thousand protesters, most wearing caps to shield themselves from the midsummer heat, joined a peaceful march to parliament, as the 24-hour walkout disrupted flights, public transport, state hospitals and other services. More demonstrations are planned later in the day, while local government offices remain closed for a second day.

"The government ... is using the bailouts as an excuse to get rid of any labor rights we have left," construction worker Costas Lavretzos said.

The public sector has so far been spared from the job cuts that have hit the rest of the Greek economy — and pushed unemployment up to 27 percent — since the country got its first international bailout in 2010.

However, the government has been forced to launch the cuts — 15,000 firings by the end of 2014 and 12,500 transfers this year — so it can continue receiving rescue loans from the International Monetary Fund and the other countries using the euro.

Parliament began a debate on the new measures before a vote expected late Wednesday.

"It's a disgrace for the government to say that things are getting better with unemployment at such a high level ... It is clear that with the economy still shrinking that we need a change of course," Efklidis Tsakalotos, a lawmaker from the left-wing main opposition party Syriza told parliament.

"The people running this country live in a different environment. They go to different hospitals. Their kids go to different schools. And they don't understand what people are going through."

Formed after elections last summer, the conservative-led government lost a junior coalition partner last month following a sudden decision to shut down state broadcaster ERT.

"The general strike is unlikely to succeed in its aim of forcing the government to withdraw its latest reform bill or convincing enough MPs to vote against it," said Martin Koehring, an analyst at the Economist Intelligence Unit.

"(But it) once again demonstrates the strong anti-austerity sentiment among the population."


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US stock futures mixed in light trading

NEW YORK — U.S. stock futures were mixed Tuesday with a sustained show of strength from the financial sector and more evidence that inflation is being held in check.

Volume is light for the second consecutive day, however, with markets awaiting testimony from the chairman of the U.S. Federal Reserve on Wednesday.

Dow Jones industrial futures slipped 3 points to 15,413. S&P futures lost 0.8 points to 1,676.70. Nasdaq futures tacked on 2.25 points to 3,075.25.

A day after Citigroup easily topped Wall Street expectations, Goldman Sachs did the same. The global investment and securities firm doubled its quarterly profits for the second quarter and posted revenue of $8.61 billion.

Market conditions became more challenging during the latter part of the second quarter, according to Goldman, and CEO Lloyd Blankfein said that the company would "continue to put a premium on disciplined risk management."

Yet the government reported that inflation is largely being held in check.

While consumer prices rose in June, most of that increase came from gas prices, according to a report from Labor Department. Overall inflation remains rather tame.

Consumer prices have risen just 1.8 percent during the past 12 months. Core prices are up 1.6 percent in the same period — the smallest 12-month change in two years.

Quarterly financial reports have been mostly strong from U.S. corporations, that that trend continued Tuesday.

Johnson & Johnson also doubled its profits during the second quarter, breezing past the projections of most industry analysts, according to a poll by FactSet.

Coca-Cola reported declining profits and weak volume growth for the quarter, particularly in North America. Global volumes rose 1 percent.

CSX and Yahoo report earnings after the bell Tuesday.


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Korean talks fail to reopen shuttered factories

Written By Unknown on Senin, 15 Juli 2013 | 20.25

SEOUL, South Korea — Officials from North and South Korea met Monday for the third time this month but again failed to find a way to reopen an inter-Korean factory park that was a key symbol of cooperation before its shutdown in April. They agreed to meet again Wednesday.

The park opened in 2004 at the North Korean border town of Kaesong during a period of rapprochement between the rivals. Operations stopped in April when tension ran high in the wake of North Korea's February nuclear test.

The two Koreas recently agreed on a desire to reopen the complex after North Korea began showing signs of an interest in diplomacy after weeks of threatening rhetoric in March and April.

Delegates from the two Koreas met Wednesday at Kaesong to discuss details on how to revive the park, but the meeting ended without breakthrough.

South Korea wants measures that would prevent any future unilateral shutdown of Kaesong, and North Korea repeated past complaints, South Korean chief delegate Kim Kiwoong told reporters after the talks ended, according to South Korean media pool reports.

North Korea has previously pressed South Korea to end military exercises with the United States and stop what it says are insults against Pyongyang's leadership.

The complex, which blends South Korean capital and management skills with cheap North Korean labor, was the last remaining major symbol of inter-Korean cooperation before its suspension.

Other rapprochement projects like reunions of families separated by war and tours to a scenic North Korean mountain have stalled amid recent animosities.

The two Koreas remains divided by the world's most heavily fortified border. Their three-year war ended with an armistice, not a peace treaty, in 1953.


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US probes C-Class Mercedes for lighting problems

DETROIT — U.S. safety regulators are investigating about 218,000 Mercedes C-Class luxury cars because the rear lights can fail and even catch fire.

The National Highway Traffic Safety Administration says the probe affects cars from the 2008 and 2009 model years.

The agency says it has 21 reports of the brake lights or turn signals lights dimming or failing to light. In many cases the drivers reported a burning smell or melting of electrical parts. Some also reported smelling smoke or seeing burn marks in the trunks, and one reported small flames coming from the rear lamp connector when the trunk was opened.

The problem hasn't caused any injuries. It normally happens in either the left or right brake or tail lights, but in some cases both sides have failed to work, NHTSA said in documents posted Monday on its website. The agency said it opened the investigation on July 11.

Investigators will look into whether the problem is widespread enough to warrant a recall.

A Mercedes spokesman said Monday that he was checking into the matter.

In one complaint filed with NHTSA from February of this year, an owner said that while driving at night, the dashboard warning lights came on indicating tail light failures on both sides of the car. The driver pulled over and opened the trunk to find it full of smoke with the smell of burning plastic. The owner told NHTSA that both bulb-holding assemblies and the electrical connections had been heavily damaged by fire and heat and said the cars should be recalled.

In another case, from June of 2012, a C-Class owner told NHTSA that the right rear tail light wiring harness caught fire and melted. The owner wrote that a dealer in Springfield, Mo., was contacted, and the owner was told that Mercedes would not fix the problem under recall. "This is a tremendous safety issue and I respectfully request that your agency address this matter with Mercedes," the owner wrote.

People who file complaints are not identified by NHTSA.


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Futures up as US earnings season ramps up

NEW YORK — Stock futures rose Monday as the corporate earnings season kicked into high gear and the government reported that retail sales increased last month.

Citigroup easily topped most expectations for the second quarter and its shares rose 2 percent before the opening bell.

Dow Jones industrial futures rose 37 points to 15,406. S&P futures added 3.9 points to 1,674.20. Nasdaq futures rose 6.75 points to 3,068.75.

While retail sales are up, much of that increase was driven by higher gas prices and volatile auto sales. Core retail sales rose just 0.15 percent, the weakest showing since January.

The report from the Commerce Department showed some weakness at retail stores, particularly department stores.

The government report is the first look each month at the mood of consumers, who have proven surprisingly resilient given higher taxes and a stubbornly high unemployment rate.

Markets are still being buoyed by comments from the chairman of the U.S. Federal Reserve last week. Chairman Ben Bernanke said the government remains committed to stimulus efforts and would not ease up on a bond-buying program that has infused global markets with cash.

Bernanke begins two days of testimony on Capitol Hill Wednesday, one of two addresses the Fed provides to Congress regarding monetary policy.

Earnings reports on tap this week include Coca-Cola, Goldman Sachs, Johnson & Johnson, Bank of America, Google and Microsoft. General Electric caps off the week Friday.


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For Obama's climate plan, devil is in the details

WASHINGTON — Frustrated by a recalcitrant Congress, President Barack Obama has vowed to take climate change into his own hands. Now he has to deliver.

Three weeks after giving an ambitious speech to outline his proposal, the president begins the arduous task of executing it. Obama's plan is a complicated mix of rule-making and federal permitting that's tough to encapsulate in a neat sales pitch — and may be even tougher to put into action.

By pledging to use his authority under existing laws, Obama freed himself from the need to sell the plan to skeptical lawmakers whose support he would need if he had to push a major climate change bill through Congress. Even so, he still needs public support to help shield vulnerable Democrats already facing criticism over the plan; their fate in the 2014 elections will determine whether Obama can accomplish much of anything during his final two years.

"While he can do some stuff on his own, he can't do others," said Jim Messina, Obama's 2012 campaign manager. "Congress needs to act on some of these things." Messina is now chairman of Organizing for Action, the group formed from Obama's campaign to advocate for the president's agenda.

The centerpiece of Obama's plan is imposing the first-ever limits on carbon dioxide emissions from existing power plants. This will require each state to draft its own compliance proposal, placing a major component of Obama's legacy largely in the hands of governors and state policymakers, many of whom are deeply skeptical about the plan and what it could mean for local economies.

Obama knows the clock is ticking. Most of what he has proposed will take years to carry out, and he only calls the shots through 2016. So his aides, Cabinet secretaries and allies are fanning out, trying to start putting the plan in place as soon as possible.

The president took some steps almost immediately after unveiling his proposal. Energy Secretary Ernest Moniz overhauled an $8 billion loan-guarantee program, one that had largely sat dormant for 5 years, to spur new technologies. Interior Secretary Sally Jewell approved a wind project in Arizona that the administration says will power up to 175,000 homes.

And the Environmental Protection Agency quickly sent a reworked proposal for emissions limits on new power plants to the White House.

When the Obama administration first proposed the limits last year, the energy industry balked, arguing the EPA was being heavy-handed because it used the same standard for natural gas as for coal. The industry argued this would mean a moratorium on new coal plants because the technology needed to retrofit plants to meet the standard isn't commercially available or cost-effective.

The new version of the rule hasn't been publicly released. But a senior White House official said the limits will now use different standards for natural gas and coal, essentially bowing to claims that the original rule was ill-conceived. The official was not authorized to divulge details about the rule ahead of its release and spoke on condition of anonymity.

Other steps have yet to be taken. The White House and the EPA are focusing on finishing the rules for new plants before they turn to the far trickier proposition of regulating existing plants.

Coordination and outreach to the 50 states won't ramp up until the fall, the official said. Obama's team insists it is confident it can convince states to go along with Obama's plan.

Heather Zichal, Obama's top energy and climate adviser, said important steps are being taken even in Republican-led states such as Texas and Utah, where local leaders have been confronted firsthand with drought and other environmental challenges blamed on climate change.

"The conversation outside the (Washington) Beltway is much different than the conversation inside the Beltway," Zichal said. "You will see us trying to connect those dots."

But don't expect Obama to try to sell the plan in the same ways he did with immigration and health care. With climate change, Obama can't fly around the country rallying Americans to demand their House members and senators vote yes on a bill. That's because there isn't one.

Even so, Obama has signaled he wants Americans engaged on the issue. He's deployed his "Energy Cabinet" — Moniz, Jewell, his agriculture and EPA chiefs and others — around the country to explain what the administration is doing and why. The White House said Obama, too, will be part of that effort, although it hasn't said whether he'll travel or make big speeches to tout the plan.

Obama's aides see parallels with gay marriage, arguing there's been a dramatic shift in public opinion on climate change that benefits their side.

On some levels, they're right. When AP-GfK asked Americans in November whether global warming, left unabated, would become a serious U.S. problem, 80 percent said it would — about the same as in 2009. In those three years, though, those who doubt climate change has been occurring have become less certain about it. In 2009, 52 percent of those who questioned climate change said they were sure it was false. In 2012, that figure dropped to 31 percent.

For Obama's supporters, criticizing those who doubt climate change has become something of a sport — a rallying cry for the Democratic base the same way Obama's so-called "war on coal" has become a conservative mantra. Organizing for Action, Messina's group, is calling out every member of Congress who doubts the planet is getting warmer.

The challenges ahead are easy to spot. The authority Obama is invoking comes from the Clean Air Act, a labyrinthine 1960s-era law that's never been used to regulate heat-trapping gases from existing power plants. The law says EPA must publish guidelines and give states time to create their own plans to meet those goals. Then the EPA gets to approve or reject those plans, setting up likely confrontations with Republican governors and some coal-state Democrats who want nothing to do with making life harder for local industry.

But if states simply refuse to propose their own plan, EPA gets to write the plan for them. It's a heavy lift with echoes of Obama's health care law, under which Washington will operate new insurance exchanges in more than half the states, after states refused to do so themselves.

"There's absolutely no precedent here," said Jeffrey Holmstead, who ran the EPA's air and radiation division under President George W. Bush. "The EPA has been given the task of fitting a very large square peg into a very small round hole."

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AP Director of Polling Jennifer Agiesta contributed to this report.

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Reach Josh Lederman on Twitter: http://twitter.com/joshledermanAP


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Hungary aims to close IMF office, repay loan early

BUDAPEST, Hungary — Hungary is considering paying back early a bailout loan from the International Monetary Fund and also wants to close the organization's office in Budapest.

National Bank of Hungary President Gyorgy Matolcsy said Monday in a letter addressed to IMF chief Christine Lagarde that while they "appreciate the valuable support" the Washington-based group gave the country, the stand-by credit program "is almost complete." As such, it was no longer necessary for the IMF to keep an office in Hungary.

In 2008, during a Socialist-led government, Hungary received a rescue credit line of 20 billion euros ($25 billion at the time) from the IMF and other creditors. But Prime Minister Viktor Orban's government chose not to renew the deal in 2010 to avoid closer IMF scrutiny of its economic policies.


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