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Jobs report shows snail’s pace recovery

Written By Unknown on Sabtu, 03 Agustus 2013 | 20.25

A lukewarm July jobs report, with employers reporting that they added the fewest new positions since March, is another sign of a sluggish recovery, economists said.

Employers added 162,000 jobs last month while the unemployment rate fell to 7.4 percent, largely because of a shrinking labor force.

"It's not striking you as something horrible, but it's not the direction you want to see," said Elliot Winer, chief economist at Northeast Economic Analysis Group.

Many of the jobs that were added were low-paying, low-productivity jobs in the retail and food-services industries, according to Nigel Gault, co-chief economist of The Parthenon Group.

"We didn't create a lot of jobs, and we weren't creating good ones," Gault said, who added the trend is not new. "It's certainly been something evident over the past year."

More than half of the new jobs added in July were in those sectors. The average workweek and hourly earnings both dropped, as well.

The results leave uncertainty about the short-term decisions of the Federal Reserve Bank. Chairman Ben Bernanke had indicated tapering of the central bank's $85 billion bond buying program could end in September if the economy continued to improve. The bond buying program has kept interest rates low, and has been a key factor in a resurgent housing market.

"It leaves fed policy up in the air," Gault said.


20.25 | 0 komentar | Read More

BMW 328i is all about performance

A sports sedan traditionally includes a manual gearbox and rear-wheel-drive that provide drivers with a more intimate connection with the road, but the BMW 328i challenges that with an eight-speed automatic transmission and all-wheel drive — features that will give a sports sedan purist pause.

My first impression as I slid into the driver's seat of our 328i tester was that the sedan was more about performance driving than luxury and comfort. That's not to say that the 328i lacks a well-appointed cabin. It's extremely comfortable with eight-way adjustable firm leather seats with the right amount of padding on the doors and center console to keep a driver comfortable yet alert and awake.

Our test BMW had a turbocharged in-line four-cylinder engine that put out 240 horsepower. BMW brands its all-wheel-drive feature as xDrive, in which power is distributed with a rear-wheel drive bias — a hard-to-live-without ­option for year-round New England driving.

The 328i's modest turbo provided plenty of might for around town and back-road driving. The extra gears from the eight-speed automatic transmission provided smooth and instantaneous power for passing on the highway. The sedan also has an auto start-stop function that turns the engine off when the car stops to conserve fuel. The feature can be deactivated if it becomes annoying.

The sedan has three driving modes — a fuel-sipping eco pro, comfort and sport. Switching to sport mode distinctively increased engine RPMs and acceleration. Toggling between the modes also changed the feel of the electronic-controlled steering. Four-wheel independent suspension allowed for spirited cornering with the ability to smooth out bridge expansion joints and other road bumps. Ventilated brakes, stability and traction controls provided peace of mind.

BMW takes safety technology to another level with its lane departure warning function. The feature not only uses warning lights to alert drivers if they unintentionally exit their lane but also sends an additional alert by vibrating the steering wheel.

Our test model, which topped out at just over $52,000, returned 33 mpg highway and 22 mpg city. While those gas mileage numbers are respectable, they are offset by the ­sedan's premium fuel require­ment.

The 328i has four optional equipment lines — luxury, modern, sport and M sport. Our tester equipped with the modern package was elegantly styled. Under­stated aluminum trim on the grille, intakes, and front and rear bumpers played well against the mineral gray metallic ex­terior paint. And the 18-inch turbine-style alloy wheels served as a re­minder of the sedan's performance abilities.

A 6.5-inch flat screen display in the center of the dashboard highlights the 328i's cockpit. Navigation and radio functions were easily accessed via a large dial located beside the shift lever. I found the 328i had good front and rear legroom and a spacious trunk. A split folding rear seat-back helps to create more trunk capacity. However, I found the sedan had limited storage along the doors and the center console cup holders­ were on the small side and too close together.

The 328i's all-wheel-drive option is a must-have for Northeast driving,­ and I personally liked the eight-speed automatic trans­mission. Sports ­sedan purists can drop the xDrive feature and go with a six-speed manual. Not enough power? More power can be found with the BMW 335i turbocharged six-cylinder.

There are plenty of other­ sports sedans worthy of consideration, but few can match the resale value of the BMW.


20.25 | 0 komentar | Read More

New Zealand botulism scare triggers global recall

WELLINGTON, New Zealand — New Zealand authorities have triggered a global recall of up to 1,000 tons of dairy products across seven countries after dairy giant Fonterra announced tests had turned up a type of bacteria that could cause botulism.

New Zealand's Ministry of Primary Industries said Saturday that the tainted products include infant formula, sports drinks, protein drinks and other beverages. It said countries affected beside New Zealand include China, Australia, Thailand, Malaysia, Vietnam and Saudi Arabia.

Fonterra said its customers were urgently checking their supply chains.

One New Zealand company has locked down five batches of infant formula and China is asking importers to immediately recall products.

Fonterra is the world's fourth-largest dairy company, with annual revenues of about $16 billion.

The news comes as a blow to New Zealand's dairy industry, which powers the country's economy. New Zealand exports about 95 percent of its milk.

Consumers in China and elsewhere are willing to pay a big premium for New Zealand infant formula because the country has a clean and healthy reputation. Chinese consumers have a special interest after tainted local milk formula killed six babies in 2008.

The Centers for Disease Control describes botulism as a rare but sometimes fatal paralytic illness caused by a nerve toxin.

Fonterra said it has told eight of its customers of the problem, which dates back more than a year, and they were investigating whether any of the affected product is in their supply chains. Fonterra said those companies will initiate any consumer product recalls.

At a news conference Saturday, Fonterra repeatedly refused to divulge the companies, countries or specific products affected. Gary Romano, the managing director of Fonterra's New Zealand milk products, said his company supplies raw materials to the eight companies and it is up to them to inform their consumers of what products might be tainted.

The company did acknowledge its chief executive, Theo Spierings, planned to fly to China Saturday, in part to deal with the fallout from the botulism scare.

New Zealand's Ministry for Primary Industries said Saturday that New Zealand company Nutricia had used some of the tainted product in its Karicare line of formula for infants aged over 6 months. Nutricia had locked down all five batches of infant formula it believed contained the tainted product, the ministry said. But it advised that parents should buy different Nutricia products or alternative brands until it verified the location of all tainted Nutricia products.

China's product quality watchdog issued a statement urging importers of Fonterra dairy products to immediately start recalling the products.

The General Administration of Quality Supervision, Inspection and Quarantine also told quality agencies around China to step up inspections of milk products from New Zealand.

Romano said the problem was caused by unsterilized pipes at a Waikato factory. He said three batches of whey protein weighing about 42 tons were tainted in May 2012, adding that Fonterra has since cleaned the pipes.

The New Zealand ministry says the tainted product has been mixed with other ingredients to form about 1,000 tons of consumer products worldwide.

The company said in a release it identified a potential quality problem in March when a product tested positive for the bacteria Clostridium. Many strains of the bacteria are harmless, the company said, and product samples were put through intensive testing over the following months. It said that on July 31 it discovered the presence of a strain of the bacteria that can cause botulism.

Romano said Fonterra hasn't received reports of anybody getting sick and added that the problem hasn't affected any fresh milk, yoghurt, cheese or long-lasting heat-treated milk.

New Zealand's Ministry for Primary Industries said it was working with the company to investigate.

Spierings, the chief executive, said in the release that food safety was the company's top priority.

"We are acting quickly," he said. "Our focus is to get information out about potentially affected product as fast as possible so that it can be taken off supermarket shelves and, where it has already been purchased, can be returned."

Earlier this year, Fonterra announced it had discovered trace amounts of the agricultural chemical dicyandiamide in some of its products, prompting a ban on the chemical's use on New Zealand farms.

Rabobank's 2012 Global Dairy Top 20 report ranked Fonterra as the world's fourth-largest dairy company by revenue behind Nestlé, Danone and Lactalis. The company is a cooperative, partially owned by thousands of farmers.

In 2011 the company collected 15.4 billion liters (4.1 billion gallons) of milk in New Zealand, representing about 90 percent of the country's total.

In 2008, six babies in China died and another 300,000 were sickened by infant formula that was tainted with melamine, an industrial chemical added to watered-down milk to fool tests for protein levels. Fonterra at the time owned a minority stake in Sanlu, the now-bankrupt Chinese company at the center of the scandal.


20.25 | 0 komentar | Read More

Red Sox owner enters $70M deal for Boston Globe

BOSTON — Businessman John Henry, the principal owner of the Boston Red Sox, has entered into an agreement to buy The Boston Globe for $70 million, a massive drop from its record $1.1 billion price two decades ago.

The impending purchase from The New York Times Co. marks Henry's "first foray into the financially unsettled world of the news media," the Globe said Saturday. The deal will give Henry the 141-year-old newspaper, its websites and affiliated companies, it said.

The Times announced in February it was putting the Globe and related assets up for sale four years after calling off a previous attempt to sell it. The company's CEO said at the time selling the Globe would help the company focus attention on The New York Times brand.

Times spokeswoman Eileen Murphy confirmed the planned sale of the Globe and other media properties to Henry. The Times said the all-cash sale, expected to close in 30 to 60 days, includes BostonGlobe.com, Boston.com, The Worcester Telegram & Gazette, Telegram.com, the direct mail marketing company Globe Direct and the company's 49 percent interest in Metro Boston, a free daily newspaper for commuters.

Henry, in a statement published by the Globe, cited the "essential role that its journalists and employees play in Boston, throughout New England, and beyond."

"The Boston Globe's award-winning journalism as well as its rich history and tradition of excellence have established it as one of the most well respected media companies in the country," Henry said.

Henry, who also owns the English Premier League soccer club Liverpool F.C., said he would reveal details about his plans for the Globe in the next few days.

Globe editor Brian McGrory said the newspaper's Red Sox coverage and its editorial decisions won't be affected by the sale.

"We have no plans whatsoever to change our Red Sox coverage specifically, or our sports coverage in general, nor will we be asked," McGrory told the newspaper. "The Globe's sports reporting and commentary is the gold standard in the industry."

The Times bought the Globe from the family of former Globe executive Stephen Taylor in 1993 for what it said was the highest price paid for an American newspaper. The price Henry is paying is less than 7 percent of the 1993 price.

The Globe and other newspapers have faced difficulties in recent years as readers have fled to the Internet and advertisers have cut spending on newspapers and moved more ads online. Still, the Globe is a journalistic institution in New England and was lauded for its coverage of the deadly Boston Marathon bombings in April.

A 2009 round of cost-cutting, involving pay cuts, helped put the Globe on better financial footing and prompted the Times to call off a planned sale. In late 2011, the Globe started charging for access to its online version at BostonGlobe.com, which helped to boost circulation revenues.

The Times company doesn't separate Globe revenue from The New York Times revenue in its financial statements. But the Globe had an average weekday circulation of 230,351 in the six months through September, according to the Alliance for Audited Media. The newspaper's increase in digital subscriptions more than offset declines in print. But the total is still down significantly from the nearly 413,000 it boasted in September 2002.

The Globe isn't the only newspaper to see a huge drop in its price at sale time.

In April 2012, Philadelphia's two largest newspapers sold for $55 million, a fraction of the $515 million paid by a group of investors in 2006. The buyers of the Philadelphia Inquirer and Philadelphia Daily News included influential New Jersey Democrat George Norcross III, former New Jersey Nets owner Lewis Katz and cable TV mogul H.F. "Gerry" Lenfest.


20.25 | 0 komentar | Read More

Red Sox owner Henry to buy Boston Globe

Red Sox owner John Henry has entered into an agreement to buy The Boston Globe and the rest of the New England Media Group, the paper's parent company, The New York Times Company, announced early today.
The $70 million cash agreement is expected to close in 30 to 60 days, according to The Times, and pales in comparison to the $1.1 billion it bought the Globe for two decades ago.
"We are excited about the prospect of working with John Henry and committed to giving Boston and New England high-quality news, information, and entertainment for years to come," said Christopher M. Mayer, Globe publisher and president of New England Media Group, said in a statement released early today.
The news is likely to deliver shockwaves to Morrissey Boulevard, where staffers have toiled under tense and uncertain conditions since the Times announced it was putting the paper up for sale in February.
The sale includes not only the Globe broadsheet, but its web sites, bostonglobe.com and boston.com; the Worcester Telegram & Gazette  and its web site; GlobeDirect, the newspaper's direct mail marketing company; and the company's 49 percent share interest in Metro Boston.
Henry, in a statement, said the paper's "award-winning journalism as well as its rich history and tradition of excellence have established it as one of the most well respected media companies in the country."
"Until the transaction has officially closed and a change in ownership is completed, it would be inappropriate for me to comment specifically about the future of the New England Media Group," Henry said. "This is a thriving, dynamic region that needs a strong, sustainable Boston Globe playing an integral role in the community's long-term future.  In coming days there will be announcements concerning those joining me in this community commitment and effort."
Mark Thompson, president and CEO of The New York Times Company, said the company was "very proud" of its ties to the Globe and Telegram & Gazette.
"We're delighted to have found a buyer in John Henry, who has strong local roots and a deep appreciation of the importance of these publications to the Greater Boston community," he said in a statement.
Henry's ownership of both a major sports franchise and a big-city daily newspaper that covers it is likely to raise both eyebrows and serious conflict of interest questions.
But it's not unprecedented.
When Henry first bought the Sox in February 2002, the New York Times owned both the Globe and a 17 percent stake in the team.
The Chicago Tribune also owned both the Chicago Cubs and Wrigley Field until 2007.
But it can often be an awkward arrangement. The Los Angeles Times faced criticism over a profit-sharing agreement in 1999 to publish a special magazine issue about the then-new Staples Center without disclosing it to readers and staff.
Henry emerged late in the Globe bidding process and had at one point been rumored to be partnering with Delaware North, which is run by Bruins owner Jeremy Jacobs.
Speculation of a Henry buy intensified on July 16 when several Globe staffers Tweeted that Henry and his wife, Linda Pizzuti Henry, had toured the newsroom.
"I just met #RedSox owner and Globe suitor John Henry, who is walking around @BostonGlobe checking us out," Tweeted Globe associate editor Shirley Leung.


20.25 | 0 komentar | Read More

Obama orders review of chemical plant rules

Written By Unknown on Kamis, 01 Agustus 2013 | 20.26

WASHINGTON — President Barack Obama is ordering federal agencies to review safety rules at chemical facilities in response to the deadly April explosion at a Texas fertilizer plant.

Obama, in an executive order to be announced Thursday, specifically tasks agencies with examining new ways to safely store and secure ammonium nitrate, the explosive chemical investigators say caused the Texas blast. Agencies are also being told to determine whether additional chemicals should be covered by federal regulatory programs.

The massive explosion at the plant in the community of West, Texas, killed 15 people and leveled hundreds of structures, including three of the town's four schools. It also prompted new scrutiny of regulations at chemical plants and the risks posed by deadly chemicals to people living in surrounding areas.

While the explosion is still being investigated, preliminary findings have been presented to Congress. A report sent to the Senate Environment and Public Works Committee in June showed that the decades-old standards used to regulate fertilizer chemicals are far weaker than those used in other countries.

The report concluded that the safety of ammonium nitrate fertilizer storage "falls under a patchwork of U.S. regulatory standards and guidance — a patchwork that has many large holes." The Environmental Protection Agency, for example, does not regulate the chemical. The Occupational Safety and Health Administration requires ammonium nitrate to be stored separately from other combustibles in a room that has a partition that can withstand fire for up to an hour. But the agency had not inspected the West plant since 1985.

Some agencies do have rules on ammonium nitrate, but none apparently applied to the facility in West.

While the investigation into the Texas blast is underway, the White House said it wanted to move forward where it could to address chemical safety concerns. Obama's executive order also calls for improved coordination among state and local agencies that deal with chemical plants. And it tasks the federal government with modernizing its information sharing about the plants.

___

Follow Julie Pace on Twitter at http://twitter.com/jpaceDC


20.26 | 0 komentar | Read More

Twitter threats highlight blight of online trolls

LONDON — If Twitter is the chirping chatterbox of the Internet, trolls are its dark underground denizens.

The collision of the two is driving a debate in Britain about the scale of online hatred and the limits of Internet free speech.

The furor erupted this week after several women went public about the sexually explicit and often luridly violent abuse they receive on Twitter from trolls — online bullies and provocateurs who send abusive or disruptive messages, often for their own amusement.

Many regard trolls as an annoyance to be ignored, but there are growing calls for action when their abuse crosses over into threats.

Police are investigating a threat of rape and murder made to Labour Party lawmaker Stella Creasy by a user with the Twitter name @killcreasynow. The crude and graphically violent tweet was one of many Creasy received after she tweeted in support of feminist campaigner Caroline Criado-Perez. Criado-Perez was sent a torrent of invective after she campaigned, successfully, for novelist Jane Austen to appear on a British banknote.

Two men have been arrested in connection with the Twitter threats, but have not been charged.

Such abuse is neither new nor confined to Britain. American writer Lindy West wrote earlier this year about receiving a slew of sexual threats after she appeared on a TV debate about rape jokes.

But the subject has received an unprecedented level of public exposure this week, sparking debates on British radio and television news programs and articles in national newspapers — even the tabloids. Creasy and Criado-Perez are among a growing group who have decided to face down the abusers, retweeting their messages in an attempt to "name and shame" the offenders, and reporting the most threatening messages to police.

"This is not about Twitter," Creasy told the BBC. "This is about hatred of women and hatred of women who speak up."

Online trolls don't just target women, although women come in for a specific kind of abuse, says Claire Hardaker, a lecturer at Lancaster University in northwest England who researches aggression, deception and manipulation online.

Trolls pick out one defining characteristic to attack their victims, she said. "If you are a Muslim, it's all Islamophobia. If you are gay, it's all homophobia. If you are a woman, it's all misogyny."

Hardaker said that while the stereotypical image of a troll is of a man in his late teens or early 20s, they are a surprisingly disparate group — 30-something women and men in their 60s have been caught trolling.

The motivation ranges from revenge to entertainment to boredom. While it seems a solitary activity, there is an online community of trolls who use sites like the anarchic forum 4Chan used to swap congratulations and criticism and egg one another on.

And while the technology is new, the impulses are as old as time.

"We have long been entertained by watching violence happen to other people," Hardaker said. "It isn't that the Internet has turned us into monsters. It has produced this online Colosseum where we can go and throw people to the lions ourselves."

The relative anonymity of the Internet makes online abuse hard to stop. Many trolls change online identities frequently and use software that masks their ISP address, making them hard to track down. Police are sometimes reluctant to spend major resources on what can be seen as minor online crime.

British campaigners are calling for Twitter to do more to block bad behavior. The site's rules explicitly bar threats of violence, but users currently have to fill out an online form to report abuse, a process some say is time-consuming and unwieldy. An online petition calling for the social networking site to establish a single "report abuse" button has more than 100,000 signatures.

Lawmaker John Whittingdale, the head of Parliament's Culture, Media and Sport Committee, said the group was planning to summon Twitter bosses to appear before it in the fall, "to determine whether they are doing as much as they can or whether they should do more."

Twitter insists it takes the issue seriously and is planning to expand an abuse-reporting button, already available on its iPhone app, to other platforms.

"We absolutely do work with law enforcement on issues like these," Del Harvey, Twitter's senior director of trust and safety, told the BBC's "Newsnight" program. "These sorts of threats are against the rules. We suspend accounts when they're reported to us. We're working to make it easier to report those accounts. We think this is really important."

Some say Twitter can't, and shouldn't, police the Internet. While the U.S. Supreme Court has ruled that First Amendment protections of freedom of speech apply to the Internet, restrictions on online expression in other Western democracies vary widely.

In Germany, where it is an offense to deny the Holocaust, a neo-Nazi group has had its Twitter account blocked. In Britain, hundreds of people are charged each year for sending menacing, indecent, offensive or obscene messages. People have been convicted for making offensive comments about a murdered child and for posting on Facebook that soldiers "should die and go to hell."

Some civil libertarians are wary of criminalizing even more online activity.

They argue that most online talk is just that — talk, never intended to translate into action. GQ magazine recently reprinted some of the blood-curdling threats it received from One Direction fans after running a cover story on the boy band that some fans found insufficiently reverential. Many of the comments were obscene, intemperate and violent — but few people suggest the tweeters should be prosecuted.

Padraig Reidy of civil liberties group Index on Censorship cautioned that the "report abuse" button was no quick fix — it could itself be abused by governments to silence their opponents or by celebrities to muzzle their critics.

He said stopping "real harassment, threats and incitement" would involve cooperation by Twitter, police, prosecutors and users of social networking sites.

"We often think that just because things are happening online there is a technical solution to make the Web a better place," Reidy said. "But it's going to take real engagement."

Anti-trolling campaigners have already taken matters into their own hands — retweeting abuse in order to expose the problem.

A group of women in Britain has coined the #everydaysexism hashtag to chronicle the extent of misogyny many women still face. Last month it was used to draw attention to dozens of tweets calling Wimbledon women's tennis champion Marion Bartoli "fat," ''ugly," a "slut" and even more offensive terms.

Sometimes such "naming and shaming" can be remarkably effective.This week a Twitter troll sent an abusive and sexually explicit tweet to Mary Beard, a Cambridge University classicist and television presenter. Beard retweeted it to her 43,000 followers, and soon a second Twitter user was offering to supply the mailing address of the offender's mother so she could see what her son had written.

He quickly became contrite. "I was wrong and very rude," he wrote. "Hope this can be forgotten and forgiven."

___

Jill Lawless can be reached at http://Twitter.com/JillLawless


20.26 | 0 komentar | Read More

New CEO Irving evaluates GoDaddy's place in racing

CHARLOTTE, N.C. — Blake Irving, new CEO of GoDaddy, is very much a car guy. How much of that translates into racing remains to be seen.

GoDaddy is in the final year of its IndyCar contract with Andretti Autosport and driver James Hinchcliffe, and all that's known about a multiyear NASCAR deal with Danica Patrick is that it runs at least through 2014. Irving said he likes both drivers very much and, during his first visit to an IndyCar race two weeks ago at Toronto, said both are strong GoDaddy ambassadors.

"If you think about both of them, the individual fit is kind of incredible," Irving said in an interview with The Associated Press. "Hinch is such a great fit because he's got such a great understanding of social media, he's actually popped on social media in a way Danica hasn't. But both of them from a characteristic standpoint have made their own way, whether it was super sharp on how you get sponsors, how you position yourself and then how hard you actually race and how hard you try. So for that fit, individually, both people are very, very unique and great for GoDaddy."

Since taking over as CEO of the website domain provider in January, Irving has attended one NASCAR race and one IndyCar race. He's spent time with Patrick, even dining with her and boyfriend Ricky Stenhouse Jr., and got his first extensive meeting with Hinchcliffe during the July 13-14 doubleheader at Toronto.

It came as the deadline nears, believed to be Aug. 15, when Hinchcliffe can negotiate with other IndyCar teams about his future. Andretti Autosport would like to have the three-time winner re-signed before the deadline, but first needs a commitment from GoDaddy.

Irving smirked when asked about GoDaddy's interest in staying in IndyCar. "I would absolutely never screw up my negotiating advantage by answering that question," he laughed.

But Irving said racing is a valuable venue and correlates with the GoDaddy message.

"Those two racers we sponsor, they are incredible individuals and they have this team of people who work behind them and are just there to support them, but do so much to make them successful," Irving said. "That's kind of what we think our job is: If we can do the same thing behind small business, and their brand gets to crush it and we just get to sit back and help them be successful, that's what we want to do. The analogies between the race business and our business and small business is huge. So it's a very important place for us to be."

Irving, a former executive at both Microsoft and Yahoo!, has a long-term vision for GoDaddy that begins with taking the company global next year. It means auto racing has to be budgeted into the overall spend as GoDaddy puts an emphasis on World Cup and reaching Latin American markets.

There will also be a new focus on the domestic advertising campaign, which began to shift toward small businesses during last year's Olympic Games. Patrick was in both Super Bowl spots in January, bringing her total to 12, tops among all celebrities.

She and Hinchcliffe currently co-star in the "Don't Be a Restraining Order Jim" domain name ad, which Irving said is likely one of the last of its kind.

"That ad is not on message for small businesses," he said. "I mean, it's funny and it talks about domain names and for the summer I think it's fine. But you'll see us move in the fall in a direction where people will know exactly what we do and who we do it for and people will walk out of those commercials saying, 'I never knew what GoDaddy did, now I know.'"

But make no mistake, new leadership at GoDaddy has changed nothing about Patrick's position as its No. 1 marketer despite her struggles to reach the podium.

"I do see social media, and do see Danica beat up sometimes," Irving said. "Mostly by male racing fans. Female racing fans love her. Non-racing fans love her. Our customers love her. She's a great representative for us. NASCAR, certainly in the states, is a great vehicle for us."

___

BUSCH-INDYCAR: Kurt Busch has been up front about his desire to run next year's Indianapolis 500.

He'd also like to run this year's IndyCar season finale at Fontana as sort of a warm-up. The Oct. 19 race is the night before NASCAR's event at Talladega Superspeedway.

"I'd like to do (Fontana) and then attempt the 500," Busch said during a break in testing this week at Watkins Glen. "If I can't get that oval race in, I just feel like I'd show up at the Indy 500 as a blind guy with a stick trying to find his way around and that is just going to be too much to make up. We're working on it, and it's a good possibility. We just have to keep our fingers crossed."

Busch is trying to put together a sponsorship deal to do the Indy 500/Coca-Cola 600 "double" next season. He'd like to run the 500 with Andretti Autosport, the team that tested him at Indianapolis last May, but needs funding to put together the team.

"Sponsorship is the name of the game," Busch said. "Everybody wants good advertising partners to do great things with, and I think this is a unique opportunity. We're out there looking and we're out there promoting and we'll see if things come together the right way."

___

ALLMENDINGER'S TOUR: The whirlwind for AJ Allmendinger continued this week as he tested at Watkins Glen with JTG Daughtery Racing, a day after running at Indianapolis Motor Speedway for Phoenix Racing.

Last weekend also saw Allmendinger run the Grand-Am race for Michael Shank Racing at Indy, where he led laps in the Indianapolis 500 and might have had a chance to win had his seatbelt not come undone.

"It's just been really cool being at Indy and realizing I raced three different types of cars at Indy this year," Allmendinger said. "To be able to drive for so many different teams and so many different series has been a lot of fun.

"I'm going to run the MotoGP (motorcycle) race at Indy as well," he joked.

There was an adjustment, though, testing the No. 47 at Watkins Glen, which he'll drive Aug. 11 for JTG.

"Just getting used to the team. This will be our third race working together," he said. "I feel fortunate for a lot of reasons. Team owners are taking a chance for me to drive their race cars, for sponsors to come aboard. Here, we'll have Scott Products on the car, and they've been a longtime sponsor of the 47 team. For them to want me to be a part of their team, be a part of their product, it means a lot. It's been such a great year."

Still, Allmendinger doesn't know what the future holds.

"This year's been a lot of fun kind of jumping back and forth," Allmendinger said. "But next year I hope I've got a full-time ride in something. I'm just looking at what's the best opportunity to go out there and win races, have fun with a race team, just enjoy racing. That's something for me this year I've really kind of gained again."


20.26 | 0 komentar | Read More

Netflix rolls out new tool to profile viewers

SAN FRANCISCO — Netflix is introducing a long-awaited feature that will make it easier for the Internet video service to track and analyze the viewing habits of people sharing the same $8-per-month account.

The tool coming out Thursday can splinter a single Netflix account into up to five different profiles at no additional charge. The Los Gatos, Calif., company is hoping its 37.6 million worldwide subscribers will use the profiles feature because it will help Netflix's recommendation system gain a better understanding of the different tastes of viewers using the same account.

The feature initially will only be available on Netflix's own website and several other viewing outlets, including the iPad, iPhone, Apple TV, PlayStation 3, Xbox 360, Apple TV and some smart TV models. It may take up to two weeks before the profiles choice pops up in these options. Profiles should be available on the Wii console before the end of August and on Android devices before the end of the year. Netflix subscribers who use Netflix on Roku's set-top box probably won't be able to use profiles on that device until early next year.

Until now, deciphering the preferences in large households could be tricky because Netflix's system couldn't distinguish between when a 50-year-old dad was watching its Internet video service and when his 10-year-old girl might be viewing under the same account.

"If the kids have been watching a lot of 'Shaun the Sheep,' that doesn't particularly help us help you find the next gritty drama to watch after they have gone to bed," said Neil Hunt, Netflix's chief product officer.

Profiles will now make it possible for several members of the same household to click on their screen name to get customized recommendations, based on what they have previously watched and seemed to enjoy in Netflix's library of movies, old TV shows and original programs. Netflix relies on viewers' own ratings of video, as well as computer-driven analyses of the genres previously watched.

Netflix Inc. considers its recommendation system to be one of its biggest advantages over rival Internet video services run by Amazon.com Inc., Hulu.com and Redbox. As long as Netflix keeps steering its subscribers to videos that they like, the company figures customers will be less likely to cancel the service.

Even though it's often analyzed a jumbled mix of viewers, Netflix's recommendation system apparently is hitting a sweet spot more often than not. The company says about three-fourths of the video watching on its service is driven by its recommendations.

The new profiles can also be used to link to each user's Facebook account. That connection allows Netflix members see what the other people in their online social network have been watching on Netflix, too.


20.26 | 0 komentar | Read More

US unemployment claims fall to 326K, 5 ½-year low

WASHINGTON — The number of Americans applying for unemployment benefits fell 19,000 last week to a seasonally adjusted 326,000, the fewest since January 2008. The decline shows the job market continues to strengthen.

The Labor Department said Thursday that the less volatile four-week average slid 4,500 to 345,750. The July figures are typically volatile as the government adjusts for seasonal layoffs in the auto industry.

Still, the trend in weekly unemployment claims in recent months has been positive. Applications, which are a proxy for layoffs, have fallen more than 12 percent this year. That's coincided with average job growth of 202,000 a month since January, up from an average of 180,000 in the previous six months.

On Friday, the government reports on July job growth and unemployment. Analysts forecast 183,000 jobs were added last month, and the unemployment rate fell to 7.5 percent from 7.6 percent in June.

A private survey released Wednesday showed surprising strength in the job market. The payroll company ADP said that companies created 200,000 jobs in July, the most for that survey since December. And it revised up its estimate of the number of jobs the private sector created in June to 198,000 from 188,000.

The ADP report is derived from payroll data and tracks private employment. It does not report government hiring. ADP's survey has diverged at times from the U.S. Labor Department's more comprehensive monthly jobs report.

Hiring has remained solid despite a weak economy. The Commerce Department reported Wednesday that the economy grew at a 1.7 percent annual rate from April through June. That's better than the revised 1.1 percent growth rate from January through March. But it's still too sluggish to rapidly lower unemployment.

The Federal Reserve on Wednesday downgraded its assessment of the economy's strength, saying it is growing only modestly. The Fed expects growth will pick up in the second half of the year.

But the cautious message may signal that the central bank is not ready to slow its bond purchases, which have helped push long-term interest rates down and encourage more borrowing and spending.

Stronger job growth had fueled speculation that the Fed could start reducing its $85-billion-a-month in purchases as soon as September. Many economists now say the Fed could delay the start of the tapering until economic growth strengthens.


20.26 | 0 komentar | Read More

Report shows US economic growth stronger in 2012

Written By Unknown on Rabu, 31 Juli 2013 | 20.25

WASHINGTON — The government says the U.S. economy grew at a much faster pace last year than previously estimated. The revised growth figures signal a more sustainable economic recovery and help explain why job growth has accelerated this year.

The economy expanded at a 2.8 percent annual rate in 2012, up from a previous estimate of 2.2 percent. Consumers and businesses spent more and governments cut back on their spending less.

The updated growth figures reported Wednesday by the Commerce Department are part of comprehensive revisions going back several decades.

The upgrade to 2012 growth helps resolve a disparity that has puzzled economists. Hiring picked up late last year and has remained solid this year. The economy has created more than 200,000 jobs a month on average since last fall.

Yet the government had said that economic growth was tepid last year. Faster growth typically drives more hiring. The previously reported growth figures had economists worried that employers would eventually have to slow hiring.

But growth is now closer in line with the job gains, a sign that the more robust hiring may endure.

The revisions are part of comprehensive changes, made roughly every five years, to the nation's gross domestic product. GDP is the broadest measure of the output of goods and services and includes everything from restaurant meals to television production to steel manufacturing. The revisions alter the data all the way back to 1929, though the largest changes were made to the past five years.

Still, the economy's broad trends are roughly the same as before. The government now says the economy shrank 4.3 percent during the recession, which lasted from December 2007 through June 2009. That's better than the previous estimate of a 4.7 percent decline. But it still remains the deepest downturn since the Great Depression.

And the recovery is still subpar. The economy expanded 8.2 percent from June 2009 through the end of last year, up from 7.6 percent, but still the weakest recovery since World War II.

Most of the change in growth rates stems from newly available and updated data from agencies such as the Census Bureau and Internal Revenue Service. Many monthly surveys of manufacturing, retail and other businesses are updated with more comprehensive annual reports.

The department has also made substantial alterations in how it defines GDP. Those changes have increased the size of the economy, through 2012, by 3 percent, or $560 billion. They include:

— Research and development spending is counted as an investment, rather than an expense. That's because it is similar to other investments, such as factories, industrial machinery and housing, Commerce officials say. R&D can have long-lasting benefits and be used in the production of other items.

— Spending on entertainment and the development of movies, books, music and TV shows are counted as investments. That's because they can generate sales and profits for years after they've been produced. Only long-lasting TV shows, such as sitcoms and dramas, are counted as investment. Reality shows and game shows, which have shorter shelf lives, aren't.

— Future pension benefits promised by governments and private companies are counted as income. Previously, only cash payments by companies and government agencies into their pension plans counted as income. This change boosted Americans' savings rate by about 1.5 percentage points in 2011 and 2012 — to 5.6 percent and 5.7 percent, respectively. The government says the change better reflects the retirement plans of those Americans with pensions and is less subject to manipulation than the cash payments.

Economists say that treating R&D spending as investment recognizes the critical role that intangible assets, such as patents or other intellectual property, now play in the U.S. economy.

"It brings the GDP accounts out of the dark ages and into the 21st century," says Joe Carson, an economist at AllianceBernstein. Carson notes that much of the value of a smartphone is in the design, rather than the manufacture of the product, and that wasn't fully captured under previous calculations.


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Bayer Q2 profits jump on new drugs, lower charges

FRANKFURT, Germany — German drug and chemicals company Bayer AG says net profit rose 75 percent in the second quarter thanks to lower one-time charges and strong sales of new products including anti-clotting drug Xarelto and cancer drug Stivarga.

But falling earnings at its high-tech materials division led the company to say it would be harder to achieve its earnings goals for the year.

Net profit came in at 841 million euros ($1.1 billion), up from 481 million euros a year ago when the company had 611 million euros in one-time charges, mostly for U.S. lawsuits over its birth-control pill. Revenues rose 1.9 percent to 10.36 billion euros.

The company, which is based in Leverkusen, Germany, said Wednesday it also saw increased sales in its pharmaceuticals division thanks to better-than-expected performance from its new products. Top performers were Xarelto, which is used to prevent dangerous blood clots in people having hip or knee replacement; Eylea, which treats the aging-related eye disease macular degeneration, and cancer drug Stivarga. Pharmaceutical sales rose 5.5 percent to 2.83 billion euros.

The company's farm business saw operating earnings, which exclude some financial items, rise 14 percent thanks to continuing high prices for agricultural commodities. The division makes seeds as well as compounds used to kill weeds, bugs and fungus.

However, Bayer recorded lower earnings at its materials business due to lower demand and prices in Asia and Europe. Operating earnings for the division, which makes things like high-tech polycarbonate plastics, fell 28.5 percent.

CEO Marijn Dekkers said the company was sticking with its outlook for the year but said that reaching it appeared "increasingly ambitious" because of the slowdown at the materials division. "It remains to be seen to what extent the unexpectedly weak development at MaterialScience will be offset by our improved performance in the Life Sciences," which includes pharmaceuticals and farm chemicals, Dekker said.

Bayer forecasts full-year sales for 2013 to increase 4-5 percent and an increase in earnings before financial items and one-time charges of "a mid-single digit percentage."

The company's earnings a year ago were lower because of money that had to be set aside for settlement costs from lawsuits over birth control pills marketed as Yasmin and YAZ. Bayer faced lawsuits in the United States from women claiming the contraceptive caused blood clots that led to serious health consequences. In this year's quarter, one-time charges dropped to only 109 million euros.

Once one-time charges and financial items such as interest, taxes, depreciation and amortization are set aside, the company's second-quarter earnings rose 1.2 percent to 2.19 billion.

Bayer shares were 3.1 percent higher at 86.95 euros in early afternoon trading in Europe.


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Kodak outlines plans for CEO's departure

ROCHESTER, N.Y. — Kodak is providing a clearer picture of its post-reorganization management plans, saying that CEO Antonio Perez will likely be replaced in the first year after it emerges from bankruptcy protection.

The photography pioneer, which was founded in 1880, filed for Chapter 11 bankruptcy protection in early 2012. Since then, the Rochester, N.Y., company has sold off several businesses and said it would shut others so it can concentrate on commercial and packaging printing.

This may be part of the reason why Kodak is looking to part ways with Perez, who was known for his digital imaging expertise. Kodak cut a deal with its U.K. pension plan in May that included the purchase of kiosks that consumers use to make prints of digital photos. It also sold its online photo sharing and printing business to Shutterfly in May 2012 for $23.8 million and has stopped making digital picture frames.

Eastman Kodak Co. said in a filing late Tuesday that Perez will stay on as CEO for up to a year or until a successor is named, whichever is first. It said he will help with the CEO selection and transition processes

Once a successor is named, Perez will resign and remain as an adviser until the anniversary of Kodak's exit from bankruptcy. He will serve as a consultant for up to another two years.

Perez was named CEO of Kodak in May 2005. The former Hewlett-Packard Co. executive had been groomed to succeed Kodak veteran Daniel Carp from the moment Perez joined Kodak in 2003 as president and chief operating officer. Carp had recruited Perez to help guide Kodak's development in the faster-paced, more crowded digital imaging arena.

While at Hewlett-Packard, Perez oversaw that company's digital imaging and electronic publishing business.

Kodak also announced that Jim Mesterharm will remain as chief restructuring officer and Becky Roof will continue as interim chief financial officer under a deal with AlixPartners, its restructuring advisory firm. The length of Kodak's agreement with AlixPartners will be determined by Kodak's post-bankruptcy board.

A confirmation hearing on Kodak's reorganization plan is currently expected to be held on Aug. 20.

Last month Kodak said that it had secured as much as $895 million to fund its operations after it exits bankruptcy protection, which the company anticipates will happen by the end of September.


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ADP: Private employers add 200,000 jobs this month

WASHINGTON — A private survey shows U.S. businesses created a healthy 200,000 jobs this month.

The payroll company ADP said Wednesday that companies hired in July at the fastest pace since December. And it revised up its estimate of the number of jobs the private sector created in June from 188,000 to 198,000.

Professional and businesses services companies added 49,000 jobs this month, construction companies 22,000. But manufacturers shed 5,000.

Small businesses — those with fewer than 50 employees — added 82,000 jobs.

"Job growth is consistently good — solid across industries," said Mark Zandi, chief economist with Moody's Analytics, which compiled the jobs report for ADP.

The healthy hiring suggests that the economy is handling tax cuts that took effect in January and federal spending cuts that began in March "more gracefully than I expected," Zandi said.

He noted that the drop in manufacturing jobs probably reflected cuts by defense contractors pinched by a tighter federal budget. A weak global economy has also hurt U.S. exporters.

The ADP report is derived from payroll data and tracks private employment. It does not report government hiring.

ADP's survey has diverged at times from the U.S. Labor Department's more comprehensive monthly jobs report. The department's employment report for July will be released Friday. It's expected to show that the economy added 183,000 jobs in July after adding 195,000 in June, according to a survey of economists by FactSet.

"The picture for the US labor market seems to have improved in the past couple of months or so," Annalisa Piazza, an economist at Newedge Strategy, said in a research note.

Zandi cautioned that recent job growth has come disproportionately in lower-paying businesses such as retailers, hotels and restaurants.


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Oil rises toward $104 ahead of Fed statement

LONDON — The price of oil staged a modest recovery Wednesday, a day after hitting a four-week low, but traders say bigger gains would likely be short-lived.

Benchmark oil for August delivery was up 17 cents to $103.27 per barrel in midday trading in Europe in electronic trading on the New York Mercantile Exchange. The contract fell $1.47 Tuesday to finish at $103.08 per barrel, the lowest closing price since July 3.

Traders are waiting to see if the Energy Department will report another draw in oil supplies after a surprisingly large drop of 30 million barrels over the past month. However, oil supplies remain high compared with the five-year average, and that will constrain the price of crude.

"Energy prices have been supported in recent weeks by renewed optimism about global demand and a revival of concerns about the geopolitical situation in the Middle East. However, we do not expect this to last," Jessica Hinds of Capital Economics said in a commentary.

"On the demand side, although US crude stocks have fallen by more than expected recently, we would be wary of placing too much weight on this development," Hinds said.

Later Wednesday, the Federal Reserve will give an updated assessment of the U.S. economy when it wraps up a two-day meeting in Washington. The government will also release the first reading of second-quarter gross domestic product growth. Analysts expect the economy to have expanded more slowly last quarter compared with the 1.8 percent growth reported for the first three months of the year.

On Friday the release of employment data for July will be examined for hints about future energy demand in the world's No. 1 economy.

Brent crude, which is traded in London, fell 69 cents to $106.22.

In other energy futures trading on Nymex:

— Wholesale gasoline fell 3 cents to $2.94 a gallon.

— Heating oil was broadly unchanged at $3.01 a gallon.

— Natural gas rose 1 cent to $3.44 per 1,000 cubic feet.


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Boston hospital settles Medicare complaint

Written By Unknown on Selasa, 30 Juli 2013 | 20.25

BOSTON — A Boston hospital has paid a $5.3 million to resolve allegations that it overcharged the Medicare system.

The Boston Globe (http://bo.st/13UYDFu ) reports that a federal review of records from Beth Israel Deaconess Medical Center found the hospital frequently admitted patients for brief stays who could have been received treatment as outpatients at less expense to Medicare.

The hospital did not admit to any wrongdoing or liability in the settlement.

Beth Israel's general counsel, Jamie Katz, said in a statement that the hospital defended its decision to provide inpatient care when doctors believed it was appropriate for their patients.

But federal officials contend that unnecessary admissions for Medicare patients can boost hospital profits at the expense of taxpayers.


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China's Xi calls for financial risks to be curbed

BEIJING — President Xi Jinping called Tuesday for authorities to curb financial risks as concerns mount in China about rising debts owed by companies and local governments.

Xi's order, in a speech at a Cabinet meeting, came after the government this week announced a nationwide audit of local government debts.

The rare public comments about the economy by China's president and Communist Party leader come as Beijing faces pressure to reverse a downturn that depressed growth to a two-decade low in the latest quarter.

The government announced a tax cut for small businesses last week but has resisted calls for a more aggressive stimulus. Instead, they say they will push ahead with longer-term reforms aimed at promoting sustainable growth.

On the financial front, analysts worry state-owned banks might face risks due to a rapid rise in borrowing by local governments and Chinese companies, as well as a big, unregulated underground lending market.

Xi said Beijing needs to "strengthen financial supervision and guard against and defuse risks," the official Xinhua News Agency reported. It gave no details of what steps he told regulators to take.

China's public and corporate debt levels are relatively low compared with annual economic output. But analysts worry the full extent of borrowing and the potential risks faced by banks might not be fully known. Some warn a rapid rise in debt since the 2008 global crisis could lead to financial problems.

A deputy finance minister, Zhu Guangyao, said this month the total amount of borrowing by local governments was unknown but he also asserted it should be manageable.

The rise in debt stems partly from the aftermath of the 2008 global crisis, when Beijing shored up growth with a flood of spending on building new subways and other public works, much of it financed by banking lending.

Local governments also have borrowed to pay for schools and other social services promised by Beijing. The National Audit Office reported last year that they ran up debts of 10.7 trillion yuan ($1.6 trillion) over the preceding decade, equal to about one-quarter of China's annual economic output.

Regulators are especially worried about an underground lending market that serves entrepreneurs who cannot get credit from state banks, which lend mostly to government companies.

Beijing tolerated the growth of such "shadow banking," which channeled money from individual savers to borrowers, as a way to support growth of private businesses. But they were alarmed when they discovered much of the money for such lending was coming from banks, which were failing to report possible higher default risks.

Economic growth slowed to 7.5 percent in the three months ending in June and some analysts say it could dip below 7 percent in coming quarters.

Xi also called for Chinese regulators to press ahead with changes meant to support growth of private companies that generate the country's new jobs and wealth. He called for promoting energy-saving technology and environmental protection.

There was no mention in Xinhua's report on his comments of a stimulus or other short-term measures.

Xi called for Beijing to "promote better banking services for the real economy," according to Xinhua, a reference to promises to make lending by state banks more market-oriented.

Communist leaders have promised to take steps to promote private business and make China's economy more efficient and productive. But they are not expected to announce major changes until a ruling party meeting in October or November.

The World Bank and reform advocates say drastic changes are required to curb the dominance of state industry if Beijing hopes to keep growth strong.

Last week, Beijing ordered companies to close factories in 19 industries in which supply exceeds demand, affirming its determination to push ahead with a painful economic restructuring despite slowing growth.

The order, following price-cutting wars that jeopardized the financial survival of some companies, applied to more than 1,400 enterprises in industries including steel, cement, copper and glass.

___

Chinese Cabinet (in Chinese): www.gov.cn.


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Hess selling energy marketing business for $1.03B

NEW YORK — Hess is selling its energy marketing business to a subsidiary of Centrica PLC for approximately $1.03 billion. The sale is part of Hess' plan to focus on its exploration and production activities.

The energy marketing business supplies natural gas and electricity to 23,000 commercial, industrial and small business customers in the eastern U.S.

Hess Corp. has been working on reshaping its business. In May the company said that it planned to split the roles of chairman and CEO. That same month it reached a deal with activist hedge fund Elliott Capital Management to revamp its board. Elliott had battled for spots on Hess' board while pushing for drastic changes at the energy company.

This transaction brings year-to-date asset sales to $4.5 billion. The company said that selling the energy marketing business to Direct Energy, Centrica's North American subsidiary, will now allow it to start buying back shares under an existing $4 billion repurchase program. It used proceeds from prior asset sales to pay back $2.4 billion of debt and strengthen its balance sheet for future growth.

The sale is expected to close in the fourth quarter, pending regulatory approvals and other customary closing conditions.

Hess shares finished at $72.03 on Monday.


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Report: Foreclosure activity down sharply in Mass.

BOSTON — A new report finds that foreclosure activity continues to fall significantly in Massachusetts.

The Warren Group said Tuesday that foreclosure petitions, the first step in the foreclosure process, fell 84 percent in June compared to the same month a year ago. The 245 petitions recorded in June were the lowest since the group began compiling the statistics in 2006.

The number of foreclosure deeds, representing a completed foreclosure, fell 56 percent in June compared to the same month last year.

Timothy Warren, chief executive of the Warren Group, says fewer homeowners are finding themselves hopelessly underwater on their mortgages.

Over the first six months of the year, the report said there were 2,943 petitions to foreclose filed in Massachusetts, compared to 9,425 during the same six-month period in 2012.


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Pfizer 2Q mixed, maintains 2013 outlook

NEW YORK — Pfizer's second-quarter net income more than quadrupled, helped by the sale of its animal health business. The world's second-largest drugmaker beat Wall Street's earnings expectations, though revenue continued to decline as patents expire on drugs that had once been blockbusters for the company.

When drug patents expire, cheaper generic versions flood the market, and most patients quickly switch to them.

The biggest impact for Pfizer has been on its cholesterol fighter Lipitor, which was the world's best-selling drug for nearly a decade until it lost exclusivity in the U.S. in 2011 and in much of Europe last year. Revenue from Lipitor, which once brought in about $13 billion a year, dropped 55 percent to $484 million in the second quarter.

Pfizer, which makes Viagra, along with the pain medicines Lyrica and Celebrex, earned $14.1 billion, or $1.98 per share. That compares with $3.25 billion, or 43 cents per share, a year earlier.

Amid declining revenue, Pfizer has been working to sell off non-core businesses and focus on prescription medicines, particularly for disorders that lack exceptional treatments.

The company's jump in second-quarter profit came largely from the spin-off of its animal drug business Zoetis. The company also benefited from a $1.4 billion patent settlement with two companies that sold generic versions of its popular heartburn treatment Protonix while they were challenging its patent, which hadn't yet expired. Under the settlement, the generic drugmakers will pay Pfizer and its partner in marketing Protonix, Japan's Takeda Pharmaceutical, $2.15 billion, with Pfizer getting 64 percent of that.

Excluding the one-time gain from the sale of its remaining 80 percent stake in Zoetis Inc. and the patent settlement, earnings were 56 cents per share, a penny better than Wall Street had expected.

Pfizer Inc. has already divested its nutrition and capsule-making businesses and on Monday, announced the reorganization of its commercial operations into three divisions.

One of those divisions will be devoted to products that are losing patent protection. Another will handle drugs with years of patent protection remaining. The third that will sell vaccines, cancer treatments, and consumer products.

Leerink Swan analyst Seamus Fernandez said the restructuring "offers greater flexibility to continue the current shareholder friendly strategy of further focusing the business on its core operating businesses."

Fernandez noted that the company benefitted from favorable foreign exchange rates which reduced the cost of sales.

The company said overall revenue fell 7 percent to $12.97 billion, which is just short of the $13.21 billion analysts polled by FactSet had predicted.

The New York company maintained its full-year adjusted earnings outlook of $2.10 to $2.20 per share. Analysts forecast $2.16 per share.

Pfizer also announced Tuesday plans to repurchase $10 billion in company shares. That's in addition to $3.1 billion in shares remaining under the company's previous share repurchase program.

Revenue from Prevnar 13, a vaccine for ear infections, meningitis and other pneumococcal infections, fell 3 percent to $969 million. Prevnar is the biggest-selling vaccine in history, with nearly $4 billion in yearly revenue.

Sales of Lyrica, for fibromyalgia and other pain, which grew 10 percent to $1.13 billion, and anti-inflammatory pain reliever Celebrex, up 8 percent at $715 million.

Sales of Viagra were nearly flat at $484 million despite a precedent-setting move in May to start selling impotence drug Viagra online to counteract the massive amount of counterfeiting of the pill on the Internet.


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Whistleblower: Olympus ignores Japan court order

Written By Unknown on Senin, 29 Juli 2013 | 20.25

TOKYO — More than a year after Japan's Supreme Court ordered camera and medical-equipment maker Olympus to stop punishing a whistleblower and reinstate him to his regular job, Masaharu Hamada is still fighting his courtroom battle.

On Monday, he got company.

Another Olympus employee, Yoshihisa Ishikawa, filed a labor lawsuit against Tokyo-based Olympus Corp., demanding 8.8 million yen ($88,000) in damages for psychological stress and harassment — for sending him to work under Hamada.

Ishikawa says the lawsuit is not a critique of Hamada. His lawsuit says his reassignment followed repeated pressure to resign, and the company never gave a reason. Olympus had no immediate comment on Ishikawa's lawsuit, saying it had yet to see it.

Koichi Kozen, the lawyer for both men, says the two cases show the extreme measures that Japanese corporations use when dealing with employees who step outside of highly conformist corporate culture. Some companies have special rooms for unwanted employees to embarrass them into quitting, he said.

Olympus contests Hamada's assertion that it has failed to reinstate him and says it is following the Supreme Court's ruling. Hamada is considered a whistleblower under Japanese law because he was subjected to bizarre and humiliating treatment after questioning possible professional misconduct.

The company has suffered a serious image problem since 2011 because of a whistleblower with an even higher profile, former chief executive and Briton Michael Woodford. He was fired after uncovering dubious accounting at Olympus that covered up massive losses.

Woodford won a 10 million pound (1.2 billion yen, $15.4 million) settlement from Olympus in a British court last year. He had sued alleging unlawful dismissal and discrimination.

Earlier this year, a former Olympus president and two other executives were convicted in a Tokyo court for their role in the cover-up of investment losses, which surfaced after Woodford came forward. They avoided imprisonment. Olympus was fined 700 million yen ($7 million).

Hamada's legal battle began in 2008, when he sued after being ostracized for relaying a supplier's complaint.

He won in the Supreme Court in June last year — Japan's first such whistleblower case. He received 2 million yen ($20,000) in damages.

But more than a year after the ruling, Hamada, a salesman with experience in the U.S., says he has not been awarded his due — placement back in his regular job.

He was recently transferred to a position in quality training, an area in which he has no experience.

Hamada has been back in Tokyo District Court, with a civil lawsuit, demanding Olympus abide by Supreme Court's ruling and place him in a job more appropriate for his background, preferably overseeing corporate compliance. He is seeking 10 million yen ($100,000) in damages.

"Why should Olympus get away with this?" Hamada said. "I am going to have to win a 100 times."

He is delighted to have another Olympus challenger in Ishikawa.

Ishikawa's assignment to work under Hamada happened a few days after Hamada filed a complaint that he did not have any workers under him although his title was "team leader."

Ishikawa, 50, an award-winning engineer with several patents to his name, is not sure why he was targeted, but suspects it may be because he was outspoken and questioned the decisions of his boss.

The corporate culture at Olympus favors subservience and conformity, according to Ishikawa, who says he lost 3 kilograms (7 pounds) in a week from stress. It hurts when you're a hard-working employee to be told you're no longer needed, he said.

"I want to represent all the workers who are suffering like this," he said. "I never asked for lots of money. I never asked for success. All I wanted to do was make good products."

___

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


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Some flights cancelled to Egypt, others half-empty

CAIRO — Cairo airport officials say seven flights to Egypt have been cancelled and that others are arriving with less than 50 percent occupancy following weekend clashes that killed 84 people.

Passengers from Yemen, Saudi Arabia, Sudan and Italy as well as Syria and Lebanon were rerouted Monday onto other planes because of low seat occupancy.

Fewer passengers are coming from Damascus and Beirut because Syrians escaping the war in their country now need visas for Egypt following changes to security rules.

Officials say that more than 55 percent of seats in flights to Cairo have been empty over the past three days. They spoke anonymously as they weren't allowed to talk to media.

Political turmoil over the past 2 ½ years has hurt tourism to Egypt, weakening the country's economy.


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Clarification: Corporate Hacking-Arrests story

NEWARK, N.J. — In a July 25 story, The Associated Press reported that hackers stole about 800,000 card numbers in a 2011 attack on the Visa network. The story should have made clear that the attack was directed at a licensee in Jordan, Visa Jordan Card Services, and not on the central payment processing network used by Visa Inc.


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Pfizer sells key vaccine cheaply to poor countries

TRENTON, N.J. — Drugmaker Pfizer Inc. has agreed to provide hundreds of millions of doses of its lucrative vaccine against pneumonia and meningitis at a fraction of the usual price for young children in poor countries.

The deal to provide 260 million shots of its Prevnar 13 vaccine for a few dollars each is Pfizer's third agreement under an innovative program through which pharmaceutical companies, governments, health groups and charities collaborate to bring poor countries a long-term supply of affordable vaccines against deadly diseases.

Prevnar 13, called Prevenar outside the U.S., protects against 13 strains of pneumococcal disease. The bacterial disease can cause painful ear infections common in young children and serious infections that can kill or leave survivors deaf, paralyzed or with permanent learning or speech disabilities. Those diseases include pneumonia, bloodstream infections and meningitis, an infection of tissue around the brain and spinal cord.

Pneumococcal disease kills more than 1.6 million people annually, half under age 5 and nearly all of them in poor countries, according to the World Health Organization.

One Prevnar dose costs nearly $130 in the U.S. — unaffordable in much of Africa, Asia and Latin America. In fact, most new Western vaccines don't reach poor countries for 10 to 15 years.

To change that, four years ago several countries and the Bill & Melinda Gates Foundation together donated $1.5 billion to develop a tactic that could provide the needed vaccines. An additional $1.3 billion was pledged by a public-private partnership called GAVI, formerly the Global Alliance for Vaccines and Immunization, whose members include UNICEF, WHO and the World Bank.

The money was used to start a pilot program that would guarantee steady, high-volume demand for vaccine makers who agree to sell their vaccines for $3.50 each or less to poor countries. Experts picked pneumococcal vaccines as the first project.

The program also aims to increase vaccine production capacity and encourage companies to develop vaccines for diseases common in the poorest countries.

Prevnar was launched in Western countries in 2009. Pfizer made the first supply agreement for it under the program in 2010, and a second one in 2011. Those deals, running through 2023, covered 480 million doses.

The alliance has estimated the pneumococcal vaccines could save up to 1.5 million lives by 2020.

"More than 10 million children have been reached with GAVI-supported pneumococcal vaccines in 29 countries since 2010. We expect to reach children in more than 50 countries with this lifesaving vaccine by 2015," Dr. Seth Berkley, CEO of the GAVI Alliance, said in a statement, adding that the goal is to make the program sustainable in the long term, partly by securing very low vaccine prices.

The latest deal gives Pfizer $3.40 a dose for Prevnar this year, then $3.30 per dose through 2025. For about the first 20 percent of doses, Pfizer gets an extra $3.50, from the $2.8 billion pledged by the charities and wealthy governments.

"Strong vaccination programs are a cornerstone of economic development — a simple intervention that has dramatic short- and long-term impact on health," Susan Silbermann, Pfizer's president of vaccines, said in a statement.

New York-based Pfizer is the world's second-biggest drugmaker, selling medicines including Viagra and pain relievers Lyrica and Celebrex. Prevnar is the top-selling vaccine ever, with annual sales just over $4 billion.

___

Follow Linda A. Johnson at http://twitter.com/LindaJ_onPharma.


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Hudson's Bay buying Saks for about $2.4 billion

NEW YORK — Luxury retailer Saks is being purchased by the parent of Lord & Taylor for approximately $2.4 billion.

The news comes a little over a month after reports surfaced that Hudson's Bay Co. was interested in buying Saks Inc.

Hudson's Bay, which also runs some Canadian department stores, will pay $16 per share for Saks, a 5 percent premium over the company's Friday closing price of $15.31.

The companies put the deal's total value at about $2.9 billion including debt. FactSet says the New York-based retailer has about 150.2 million outstanding shares.

Saks' stock jumped more than 3 percent in Monday premarket trading. Shares are up 46 percent for the year to date.

"We are excited about what this opportunity and being part of a much larger enterprise can mean for the future of the Saks Fifth Avenue brand," Saks Chairman and CEO Steve Sadove said in a statement.

Saks will continue to run as a separate company under Hudson's Bay and will have its own merchandising, marketing and store operations employees. Key management personnel are expected to remain with the company.

Saks will have a 40-day period in which to seek out alternative third-party bids.

The buyout, which was approved by both companies' boards, is targeted to close before year's end. It still needs approval from Saks' shareholders.

Hudson's Bay said that it will look at strategic options for the combined property portfolio, which could include establishing a real estate investment trust.

Founded in 1924 by Horace Saks and Bernard Gimbel, Saks' flagship store on Fifth Avenue in New York City is a landmark of retailing and sits on some of the most valuable real estate in the world. The company employs about 15,000 people across 41 stores.

Saks added stores and expanded across the nation in the 1970s and 1980s. It became a publicly traded company in 1996.

Saks had 42 Saks Fifth Avenue stores and 66 Saks Fifth Avenue Off 5th stores at the first quarter's end.

Hudson's Bay was founded in 1670 as a trading firm for furs and other goods. It is considered the oldest company in operation in North America.


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