Mass. fishermen eligible for federal disaster aid

BOSTON — The federal Small Business Administration has decided to provide federal disaster assistance to Massachusetts fishermen hard hit by reductions in catch limits and groundfish stocks.

U.S. Sen. Edward Markey said Friday that the assistance will help fishermen keep their businesses afloat as they adjust to changing conditions that threaten commercial fishing communities across the state.

In September, Gov. Deval Patrick officially certified that Massachusetts fishermen who chase bottom-dwelling groundfish had suffered "substantial economic injury."

He cited the poor health of key fish stocks and this year's devastating cuts in the allowed catch.

The disaster aid will help fishermen in Barnstable, Bristol, Essex, Plymouth, Norfolk and Suffolk counties as well as two counties in New Hampshire.

An industry group, the Northeast Seafood Coalition, had initiated the appeal for disaster assistance.

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Hilltop townhouses offer view

A major transformation of the hilltop site of the former Symmes Hospital in Arlington is adding 176 residential units, including 12 townhouses for sale.

Arlington 360 has been long in the making, but the development is now renting and selling. The 12 townhouses — in two attached groups of six — are two- or three-bedroom and range in price from $619,000 to $644,000.

We took a look at model unit 2012, a two-bedroom plus den end unit with three levels of living space and a garage on the lower level. The 2,090-square-foot condo, which has two bedroom suites, is on the market for $644,000.

The townhouses have attractive exteriors of brick red cement board, with brown shingle accents, projecting bays and white trim.

A covered front porch leads into a bamboo foyer with a coat closet. To the left is a formal living room with bamboo floors, recessed lighting, 9-foot ceilings and lots of windows on two sides.

Straight ahead is an open kitchen/dining area with a rear glass wall and door out to a wood-floored balcony.

The kitchen features recessed lighting and bamboo floors, 22 hazelnut-stained cabinets and dark brown granite counters, including a preparation peninsula. General Electric stainless-steel appliances include a refrigerator, dishwasher and a four-burner gas stove and oven. Off to one side is a pantry with built-in shelving.

The dining area side windows, in addition to the glass wall and the balcony, overlook a community garden and sports court.

Behind this room is a half bath with a pedestal sink.

The nicely crafted turning staircase to the second floor has bamboo treads and there's even a nook on the ground floor for a home office desk.

There are two carpeted bedroom suites on the second floor. The front master suite is a little nicer, with a large walk-in closet and views of Boston's Back Bay skyline. The en-suite bathroom has creme marble floors and a white cultured marble vanity with two sinks.

There is white subway tile around a deep soaking tub and shower.

The rear bedroom is also good-sized and features an en-suite bathroom with porcelain-like striated tile floors and a white cultured marble vanity. There is also a white subway tile tub and shower.

In the bamboo hallway between the bedrooms, a white General Electric washer and dryer are stacked.

The unit's basement features a carpeted den and bamboo hallways with a rear egress out to the community garden and an additional outdoor parking space. There is also direct access to an oversized one-car garage.

A nearby closet holds the condo's high-efficiency Hydro Air two-zone heating and cooling system and a Navien tankless water heating system.

Townhouse owners can also use a pool and fitness center in the adjacent rental property for $135 a month.

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Henry pays $38M for Globe HQ

John Henry paid $38.4 million for The Boston Globe's headquarters on Morrissey Boulevard as part of the 
$70 million deal last month to acquire the New England Media Group from The New York Times, according to newly filed records at the Suffolk County Registry of Deeds.

"That's interesting as a metric because as I talk to newspaper brokers over the years what they've said is on average, the price of newspaper properties is half-covered by real estate," said analyst Ken Doctor of Newsonomics. "That would fit that principle really well. The brand, the good will, the cash flow ... amounts to only half the sales price, the other half is the hard real estate."

Experts have speculated the sprawling Dorchester property — with its proximity to the Southeast Expressway and UMass Boston — could be a hot commercial property if redeveloped, even though parts of it are contaminated.

Henry also paid $7.8 million for the property containing the Worcester Telegram & Gazette's printing presses in Millbury and $277,400 for the Clinton office of Coulter Press, which publishes The Item and The Banner, according to Worcester County Registry of Deeds documents.

Secretary of State William Galvin officially certified Henry's corporation papers for the newly created The Boston Globe Newspaper Co. LLC Thursday night, according to state records.

Henry and Globe controller Karen Bray are the only names listed in the corporation filings — Henry organized the Globe LLC in Delaware. Henry declined to comment through a spokesman yesterday.

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Obama: Budget is about choices, priorities

WASHINGTON — President Barack Obama says budget negotiations in Congress are about choices and priorities.

In his weekly radio and Internet address, Obama urges Congress to pass a budget that includes spending on education, infrastructure and research.

Obama says there's an obsession with cutting spending just for the sake of cutting. He says it's not helping grow the economy. He's pointing out that deficits are falling fast on his watch.

House and Senate budget negotiators hope to strike a deal that would avert a new round of automatic cuts set to hit the Pentagon and domestic programs.

In the Republican address, Sen. Dan Coats of Indiana is criticizing Obama over the health care website and insurance cancellation notices. He says the health care law can't be fixed and Americans should start over.

___

Online:

Obama address: www.whitehouse.gov

GOP address: www.youtube.com/gopweeklyaddress

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Reports: Barclays bank suspends 6 in rigging probe

LONDON — Barclays bank has suspended six traders amid an investigation into whether international currency markets were rigged, the BBC, the Financial Times and other outlets reported Saturday.

Barclays, Britain's second-largest bank, revealed on Wednesday that it was the subject of an investigation by regulators in Britain and other countries over "possible attempts to manipulate certain benchmark currency exchange rates."

The bank said it was "reviewing its foreign exchange trading covering a several year period through August 2013 and is cooperating with the relevant authorities."

Barclays spokeswoman Aurelie Leonard declined to comment Saturday on reports that traders had been suspended.

Other banks including JPMorgan Chase, Citigroup and Switzerland's UBS have also said they are being investigated over currency trading, and Britain's RBS suspended two traders on Thursday in the same investigation.

The investigation is the latest bad news for Barclays, which overhauled its top management after being fined $453 million for manipulating a key global interest rate and other wrongdoing.

The international currency-trading investigation has echoes of inquiries into manipulation of the London interbank offered rate, or LIBOR, which underpins trillions of dollars in transactions around the world. The financial world was shaken when it emerged that banks — including Royal Bank of Scotland, Barclays and UBS — were submitting false data to gain market advantages.

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World stocks sink on fear Fed will trim stimulus

PARIS — Fears that the U.S. Federal Reserve bank will begin cutting its stimulus to the American economy sooner than expected spooked world markets on Thursday, driving shares down.

The Fed's announcement that it would maintain its $85 billion monthly bond purchasing scheme was widely expected, and cheered, by investors. But the bank's economic outlook was rosier than anticipated and could indicate that it will begin to reduce those purchases — a process known as tapering — soon.

"The reason the markets are cautious today is because officials threw a spanner in the works when they hinted that tapering could occur earlier than many investors thought," said Shavaz Dhalla, a financial trader with Spreadex. "Policy officials argued that advancements in household spending as well as investments were encouraging despite a struggling housing market.

The Fed no longer expressed concern, as it did in September, that higher mortgage rates could hold back hiring and economic growth. And its statement made no reference to the 16-day government shutdown, which economists say slowed growth this quarter. Some analysts said that suggests tapering could begin early next year.

In Europe, France's CAC-40 was down 0.3 percent to 4,263, while the DAX in Germany dropped 0.2 percent to 8,988. Britain's FTSE index of leading shares pulled back 0.4 percent to 6,750.

Wall Street also looked set to open lower. Dow Jones futures were down 0.3 percent to 15,514, while futures for the broader S&P exchange fell 0.4 percent to 1,755.

Earlier, markets retreated in Asia. Japan's Nikkei 225 lost 1.2 percent to 14,327.94 and Hong Kong's Hang Seng was off 0.4 percent at 26,206.37. China's Shanghai Composite shed 0.9 percent to 2,141.61 and Seoul's Kospi lost 1.4 percent to 2,030.09. Benchmarks in Jakarta, Singapore, Taiwan and Malaysia also fell.

Benchmark oil also fell, dropping 17 cents to $96.60 a barrel in electronic trading on the New York Mercantile Exchange. Energy prices typically drop when investors are worried that the world economy might slow.

The U.S. central bank's cheap money policy has underpinned stock markets worldwide for several years and has been credited with helping the world's largest economy to recover. If the U.S. starts to falter again, it will have an effect on the recovery of economies around the world.

The euro fell 0.2 percent to $1.3699.

___

Associated Press writer Eileen Ng in Kuala Lumpur, Malaysia, contributed.

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It’s a Mass. cancellation

Some Bay State residents who thought their individual health insurance policies wouldn't be affected by the Affordable Care Act are getting a surprise — their plans are no longer available even in this state that has had minimum standards similar to Obama-care for the past six years.

Obama administration officials have gone from apologizing for the health care website's woes to defending the president's 2009 promise that "if you like your health care plan, you'll be able to keep your health care plan, period," after a wave of cancellation notices started hitting the estimated 14 million people nationwide that buy individual policies. Health and Human Services Secretary Kathleen Sebelius, testifying before Congress yesterday, said insurance companies cancel policies all the time and "they will be offered new plans."

It's unclear how many people who buy individual policies nationwide, and in the Bay State, have to switch plans. Paul Levy, the former president and CEO of Beth Israel Deaconess Medical Center, told the Herald he was re-enrolling in his Blue Cross Blue Shield plan, but found that it will no longer be available, forcing him to choose a new plan.

"It turns out it's more expensive to do so," Levy said, adding that he will likely have to pay $220 more per month for a similar plan.

Sharon Torgerson, a spokeswoman for Blue Cross Blue Shield, said "For the vast majority, the plans that members have today are the plans that members will have in the future."

Insurance plans in Massachusetts are being modified mostly to fit into the four-level tier system implemented as part of Obamacare, said Eric Linzer, senior vice president for the Massachusetts Association of Health Plans.

"There's some technical changes being made to get in line with the Affordable Care Act," said Jason Lefferts, spokesman for the Massachusetts Health Connector.

In addition, 105,000 policyholders who receive subsidies will have to reapply so they can receive subsidies from the federal government, Lefferts said.

Linzer said while some plans could be more expensive, others will be cheaper.

"It's going to vary on a case by case basis," he said.

Levy was quick to point out that he still supports Obama-care, but took issue with the president's promise that people could keep their insurance plans.

"When the administration sold the bill, they said something that was not quite accurate, and now they're getting caught on it," Levy said.

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Glassy Fan Pier condo complex breaks ground

The Fallon Co.'s groundbreaking yesterday for a 118-unit, luxury condominium tower on the South Boston waterfront — the premiere product of its $3 billion Fan Pier development — is a clear signal that the already-robust market for the Seaport District only will grow stronger, industry observers say.

The start of the 14-story, Twenty Two Liberty is an endorsement of the district as not only a commercial area, but also a residential one that's not limited to transient apartment dwellers, said David Begelfer, CEO of NAIOP Massachusetts, a commercial real estate development trade group.

"We have had a number of multifamily apartments built, so we understand the rental market is safe and sound in the Seaport area," Beglefer said. "But this is a big sign because this is a luxury, high-end condominium project ... and it's the first in the area. This is the gem, and if it was not quite the right time, you would hold off on it."

Fallon Co. CEO Joseph Fallon, a pioneering architect of the South Boston waterfront boom, expects Twenty Two Liberty to be ready for move-ins in fall 2015. He would not disclose the project's price tag.

The condos will range from 500 square feet for a studio to 2,900 square feet for a three-bedroom, penthouse unit.

"This is very exciting for us," Fallon said of the project. "But we're really excited about what's going on in the neighborhood."

Fallon expects to start his next Fan Pier project — a 500,000 square-foot building where law firm Goodwin Procter will be lead tenant — in the first quarter of next year.

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The Ticker

U.S. adds only 130,000 jobs in October

The 16-day government shutdown hurt job growth in the private sector this month with only 130,000 jobs added, a drop of 15,000 from September, according to ADP's National Employment Report.

Service industries added the most jobs, but still fewer than last month at 107,000 compared with 130,000 in September. Trade, transportation, and utilities businesses had the biggest October job growth within the service sector.

El Pinto sues Ocean Spray

El Pinto Foods, an affiliate of a 50-year-old Albuquerque, N.M., restaurant, has brought a lawsuit in U.S. District Court alleging that Ocean Spray Cranberries breached a three-year contract under which El Pinto would manufacture Ocean Spray Cranberry Salsa and Cranberry Relish.

Facebook earnings beat expectations

Facebook's third quarter results highlighted how the company is increasingly monetizing its network better.

The company reported third quarter new income of $425 million, or 17 cents a share, on revenue of $2.02 billion, up 60 percent from $1.26 billion a year ago. Non-GAAP earnings for the third quarter were 25 cents a share. Wall Street was expecting Facebook to report non-GAAP third quarter earnings of 19 cents a share on revenue of $1.91 billion.

Starbucks profit up 34 percent

Starbucks says its profit rose 34 percent in the quarter, as the coffee chain used its loyalty program to get customers to visit more often and spend more on revamped sandwiches and other food.

The Seattle-based company said global sales rose 7 percent at cafes open at least a year, including an 8 percent rise in both the U.S. and Asia. In the region encompassing Europe, the Middle East and Africa, where the company has struggled, the figure rose 2 percent.

TODAY

• Labor Department releases weekly jobless claims.
• Freddie Mac, the mortgage company, releases weekly mortgage rates.

TOMORROW

• Institute for Supply Management releases its manufacturing index for October.
• Automakers release vehicle sales for October.

THE SHUFFLE

• Boston law firm Murphy & King announced that Andrew M. Jacobs, left, has joined the firm as a litigation associate in the firm's business litigation practice. Jacobs concentrates his practice on commercial litigation matters.
• Goodwin Proctor announced that Mark J. Lochiatto has been made partner. Lochiatto advises real estate investment mana-
gers, real estate funds and other institutional investors.

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Fewer Americans seek unemployment aid for 3rd week

WASHINGTON — The number of Americans applying for unemployment benefits fell 10,000 last week to a seasonally adjusted 340,000, a sign that employers are laying off very few workers.

The Labor Department said Thursday that the four-week average rose 8,000 to 356,250, the highest since April. The 16-day partial government shutdown and backlogs in California due to computer upgrades inflated the average.

Still, a government spokesman said those unusual factors did not affect last week's first-time applications, which appeared to be free of distortions for the first time in two months.

Applications are a proxy for layoffs. They have fallen for three straight weeks and are just above the pre-recession levels reached in August.

Fewer applications are typically followed by more job gains. But hiring has slowed in recent months, rather than accelerated.

The economy added an average 143,000 jobs a month from July through September. That's down from an average of 182,000 in April through June, and 207,000 during the first three months of the year.

"A larger concern remains over firms not willing to accelerate hiring as the lean workforce does not leave much room left for firing," said Yelena Shulyatyeva, an economist at BNP Paribas.

Nearly 3.9 million people received unemployment benefits in the week ended Oct. 12, the latest data available. That's about 40,000 more than the previous week. But a year ago, more than 5 million people were receiving unemployment aid.

Hiring likely weakened even further in October because of the shutdown, which ended on Oct. 16. In addition to government contractors, other companies also likely cut jobs, such as restaurants and hotels located near national parks, which were closed. Some economists are forecasting that job gains in October could be 100,000 or less.

Payroll provider ADP said Wednesday that businesses added just 130,000 jobs in October. That's down from ADP's estimate of 145,000 private-sector jobs added in September.

The government will release its October employment report on Nov. 8. The report was delayed a week because of the shutdown.

The Federal Reserve said Wednesday that the economy is growing at a moderate pace but still needs its support. Fed policymakers decided to continue purchasing $85 billion a month in bonds. The bond purchases are intended to lower long-term interest rates and encourage more borrowing and spending.

In a statement, the Fed struck a slightly more optimistic tone about the economy. That suggests the Fed might pull back on its stimulus as early as December, economists said.

Most economists expect growth at an annual rate of between 1.5 percent and 2 percent in the July-September quarter, and about the same in the final three months of the year.

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Australian loses compensation case for sex injury

CANBERRA, Australia — Australia's highest court on Wednesday denied workers' compensation to a government employee who was injured while having sex in a motel room during a business trip.

The 4-2 decision from the High Court said the woman's employer did not induce or encourage her to participate in the sex, so the federal government's insurer, Comcare, was not liable to compensate her. A lower court had said the woman was injured in the course of her employment and should be compensated.

The High Court's ruling is final and could have ramifications for other federal employees who claim compensation for unconventional work-related mishaps.

The woman, who cannot be identified for legal reasons, was a federal civil servant in her 30s when she was hospitalized for the injury in 2007. She and a man were having sex in her motel room when a glass light fixture above the bed fell onto her face, injuring her nose and mouth. She later suffered depression and was unable to continue working for the government.

Comcare initially approved her claim for workers' compensation, but rejected it after further investigation. An administrative tribunal agreed that her injuries were not suffered in the course of her employment, saying the government had not induced or encouraged the woman's sexual conduct. The tribunal also found the sex was "not an ordinary incident of an overnight stay," such as showering, sleeping or eating.

Federal Court Judge John Nicholas overturned that last year, rejecting the tribunal's findings that the sex had to be condoned by the government if she were to qualify for compensation.

"If the applicant had been injured while playing a game of cards in her motel room, she would be entitled to compensation even though it could not be said that her employer induced her to engage in such activity," Nicholas wrote then.

Comcare lost its appeal to the Full Bench last December, with the three judges finding that the government's views on the woman having sex were irrelevant.

But the High Court ruled that Comcare was not liable to pay compensation. The judges did not say how much compensation had already been paid. Comcare declined to comment on the amount, but said it was considering recovering it.

"The relevant question is: Did the employer induce or encourage the employee to engage in that activity?" a summary of the court ruling said. A majority of judges — Justices Robert French, Kenneth Hayne, Susan Crennan and Susan Kiefel — answered "No."

Justices Virginia Bell and Stephen Gageler dissented.

The crucial facts were that the overnight stay was within the two-day period of the work trip and her employer had encouraged the woman to stay in the motel in Nowra, 160 kilometers (100 miles) south of her hometown of Sydney, Gageler said.

"In the absence of any suggestion that she was engaged at the time of injury in misconduct, those facts were sufficient to conclude that the injury the respondent sustained during that interval, and when at that place, was sustained in the course of her employment," Gageler said.

Employment Minister Eric Abetz hailed the ruling as a victory for common sense.

"Instances such as this, where an employee seeks to stretch the boundaries of entitlements, are of great concern and the High Court's intervention is welcome," Abetz said.

Comcare declined to say what effect the ruling would have on other compensation claims. The government insurer also declined to say whether other claims in comparable circumstances were pending.

Australian National University law lecturer Cameron Roles said the ruling reduced the range of after-hours activities covered by workers' compensation when an employee was away from home on business.

"I don't think you can say that this decision means that all activity in hotel rooms won't be covered, but it certainly narrows that range of what activity will be covered," Roles said.

"In terms of the precise activities, it's quite difficult to say because everything turns on the facts" of an individual case, he said.

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Futures rising on strong corporate performances

NEW YORK — Stock futures are rising as quarterly reports from U.S. corporations continue to surpass expectations.

The Federal Reserve will also release its monetary policy statement Wednesday. Economists believe the U.S. will maintain an $85 billion bond-buying program that has kept interest rates low, and markets flush with cash.

Dow Jones industrial futures are up 44 points to 15,660. S&P futures have gained 4.1 points to 1,771.50. Nasdaq futures are up 14.25 points to 3,398.25.

Chrysler is reporting a 22 percent jump in third-quarter profit and a healthy slate of films helped Comcast beat Wall Street expectations.

The Labor Department will release its consumer price index for September at 8:30 a.m. Eastern time. Economists expect consumer prices rose 0.2 percent, with the weak economy and slim pay increases keeping inflation in check.

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Survey shows rising confidence in eurozone economy

BRUSSELS — A new survey points to an increase in confidence in the eurozone's nascent economic recovery.

The European Union's statistics office on Wednesday said economic sentiment in the 17-nation eurozone rose for the sixth time in a row in October.

Eurostat says the Economic Sentiment Indicator increased by 0.9 points to 97.8 for the eurozone and by 1.1 points to 101.8 for the EU's 28 nations.

The eurozone's economy grew by 0.3 percent in the second quarter compared with the previous three-month period, bringing it out of recession. The uptick followed six straight quarterly declines that have pushed unemployment above 12 percent.

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UK press goes to court to put brakes on regulation

LONDON — Britain's press is going to court in a bid to stop the imposition of new rules developed after the country's phone hacking scandal.

Officials are working to create a body which would subject Britain's newspapers and magazines to a government-backed watchdog insulated from media owners and publishers.

Proponents say it's the right way to curb the abuses uncovered by the scandal, but many journalists worry the supposedly independent body could be abused by politicians to punish publications they don't like.

Editors and newspaper owners have proposed their own version of the watchdog, but that was rejected by officials earlier this month.

Now an industry body has gone to Britain's High Court to argue that the government hasn't given their plan proper consideration. An injunction could be granted later Wednesday.

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Court nixes Deutsche Telekom's broadband cap

BERLIN — A court in Germany has struck down plans by the country's biggest telecom company to drastically reduce Internet speeds for fixed-line broadband customers who surf too much.

Deutsche Telekom had warned that subscribers who made heavy use of their 'flat rate' broadband connections could see speeds cut to less than 10 percent of what they had signed up for.

The move prompted a wave of consumer protest when it was announced earlier this year.

A regional court in the western city of Cologne ruled Wednesday that the plan wasn't legal because customers could expect "flat rate" services not to be limited.

Deutsche Telekom said it disagreed with the ruling and was considering whether to appeal.

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Cyprus president expects positive bailout review

NICOSIA, Cyprus — Cyprus' president says he expects international creditors' latest review to approve the country's handling of its bailout program.

Cyprus in March got a 10 billion-euro ($13.78 billion) loan to save it from bankruptcy, but in return it had to commit to a series of reforms and measures.

Among those, uninsured depositors in the country's two biggest banks were forced to take major losses on their savings. The second-largest bank, Laiki, was shut down and authorities imposed capital controls to prevent a run.

Nicos Anastasiades said Monday that a second assessment by the country's eurozone partners and the International Monetary Fund will be "equally significant and positive" as their initial one over the summer.

EU and IMF officials are due to begin their review Tuesday.

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Futures waver as US earnings season rolls on

NEW YORK — Stock futures are fluctuating after another record week for U.S. markets.

Dow Jones industrial futures are down 6 points to 15,491. S&P futures have lost a point to 1,752.90. Nasdaq futures are up less than a point to 3,374.25.

A strong quarterly earnings performance from U.S. corporations pushed the S&P to record highs and the Nasdaq to 13 year highs last week.

Futures had been heading solidly higher Monday, but began to waver after the drugmaker Merck said its profit had plunged 35 percent because of generic competition.

And many industry watchers expect Apple to report once again that its earnings are sliding when it posts quarterly results after the closing bell. That would mean the third consecutive quarter of falling profit for Apple.

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Stocks mostly rise on hope US stimulus to continue

LONDON — Global stock markets were mostly higher Monday amid growing expectations that the U.S. Federal Reserve won't start reducing its monetary stimulus until at least the first quarter of next year.

With uncertainty over the raising of the U.S. borrowing limit temporarily resolved, investors have focused on other matters, notably when the Federal Reserve will reduce its mammoth monetary stimulus that has been a boon for stock markets.

U.S. hiring and durable goods orders for September were weaker than expected, signaling that growth momentum may be slowing and reinforcing expectations that a scaling back of stimulus known as "tapering" won't begin until next year, Mitul Kotecha of Credit Agricole CIB in Hong Kong said in a market commentary.

Further U.S. data releases this week including September industrial production, retail sales, inflation and consumer confidence as well as a Fed policy meeting could reaffirm that expectation, he said. The Fed is buying $85 billion of U.S. government bonds and other securities with the aim of keeping interest rates low to support economic recovery.

"The bad news is good philosophy of markets means that data is helping to aid expectations that Fed tapering may be delayed," he said. "We continue to anticipate tapering to begin in January although admittedly the market is shifting expectations to even later."

After Asian indexes closed higher, trading was more cautious in Europe. Germany's DAX was flat at 8,981.47, as was Britain's FTSE 100, at 6,718.68. The CAC-40 in France, however, was off 0.5 percent at 4,250.40.

Wall Street was expected to rise modestly on the open, with Dow futures up 0.1 percent at 15,514 and S&P 500 futures up the same rate to 1,755.50.

In Asia, Japan's Nikkei 225 rose 2.2 percent to 14,396.04, recovering from a big drop last week. Hong Kong's Hang Seng added 0.5 percent to 22,806.58.

China's Shanghai Composite Index rebounded from earlier losses to rise fractionally to 2,133.87, putting aside worries over a possible credit crunch following the Chinese central bank's refusal last week to inject funds into money markets to curb frothy credit growth.

Benchmarks in Taiwan, Seoul, Malaysia and Singapore were also higher.

In energy trading, benchmark U.S. crude for December delivery was down 8 cents at $97.77 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained 74 cents on Friday.

The euro was down 0.1 percent at $1.3799, while the dollar shed 0.1 percent against the Japanese yen, to 97.66 yen.

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Burger King 3Q earnings climb, costs fall

MIAMI — Burger King's third-quarter net income surged as it sharply reduced its restaurant expenses mostly due to the refranchising of company-owned restaurants and continued to grow overseas.

The Miami company's performance topped analysts' estimates. It also raised its quarterly dividend.

Shares rose in premarket trading.

Burger King Worldwide Inc. has been revamping its business since it was purchased in 2010 by 3G Capital, a private investment firm run by Brazilian billionaires. The company has been selling more restaurants to franchisees in a bid to reduce overhead costs. Instead of booking sales from those restaurants, Burger King collects franchise fees.

For the three months ended Sept. 30, the hamburger chain earned $68.2 million, or 19 cents per share. A year earlier it earned $6.6 million, or 2 cents per share.

Excluding certain items, earnings were 23 cents per share. Analysts polled by FactSet expected earnings of 21 cents per share.

Restaurant expenses dropped to $22.9 million from $216.3 million. Burger King also managed to lower significantly its selling, general and administrative expenses and other operating expenses.

Revenue declined 40 percent to $275.1 million from $455.7 million mostly due to the refranchising of 519 company-owned restaurants. But it still managed to beat Wall Street's forecast of $264.5 million.

Stripping out the impact of the refranchising and foreign currency fluctuations, revenue rose 8.1 percent.

Sales at restaurants open at least a year, including both company-owned and franchised locations, rose 0.9 percent. This figure is a key indicator of a restaurant operator's health because it excludes results from locations recently opened or closed.

The strongest performance was in the Asia Pacific region, which posted a 3.7 percent rise in the metric. Latin America and the Caribbean and Europe, the Middle East and Africa also reported improved sales.

There was some softness in the U.S. and Canada though, with sales at restaurants open at least a year dipping 0.3 percent. This was due to tightened consumer spending and ongoing competition.

Burger King boosted its quarterly dividend to 7 cents per share from 6 cents per share. The dividend will be paid on Nov. 26 to shareholders of record on Nov. 12.

The company, founded in 1954, has more than 13,000 restaurants in 91 countries and territories worldwide.

Its stock gained 54 cents, or 2.7 percent, to $20.30 in premarket trading about an hour before the market open.

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Merck 3Q net income falls on charges, lower sales

Merck & Co. said Monday that its third-quarter profit plunged 35 percent because of competition from generic drugs, lower sales of its top-selling medicine, and restructuring and acquisition charges. It still beat Wall Street's profit expectations, but sharply lowered its own forecast for the full year, sending shares down.

Generic competition continued to hammer asthma and allergy drug Singulair, cutting sales 53 percent in the quarter to $280 million. The drug had been bringing in $5.5 billion a year until its patent expired in August 2012 and cheap copycat versions flooded the market.

The world's third-biggest drugmaker by revenue has previously done a better job weathering generic competition to its blockbusters, usually managing to keep total sales at the same level as before big patent expirations. This time, its other drugs aren't picking up all the slack. Merck said it now expects total 2013 sales to be down 5 percent to 6 percent from last year.

Its top seller, Type 2 diabetes pill Januvia, had been climbing steadily toward the $4 billion-a-year mark, but sales slipped 5 percent in the last quarter. Merck blamed unfavorable currency exchange rates and wholesalers reducing their inventory.

Merck said net income was $1.12 billion, or 38 cents per share, down from $1.73 billion, or 56 cents per share, a year earlier.

The company, based in Whitehouse Station. N.J., said that excluding the one-time items, net income would have been $2.73 billion, or 92 cents per share. Analysts surveyed by FactSet were expecting 88 cents per share.

The items included $1.2 billion for merger and integration costs and $967 million for restructuring costs.

Revenue totaled $11.03 billion, down 4 percent. That missed expectations for $11.13 billion in revenue.

Along with Januvia, sales fell for its combination cholesterol pill, Vytorin, dropping 6 percent to $396 million. But sales of Gardasil, a vaccine against cancer-causing human papilloma virus, jumped 15 percent to $665 million and sales of Remicade, a biologic drug for immune disorders such as arthritis, climbed 17 percent to $574 million. Sales of most other drugs rose by several percent.

The company lowered its 2013 profit forecast to $1.61 to $1.79 per share, from its July forecast of $1.84 to $2.05. It said unfavorable foreign exchange rates would account for about 2.5 percentage points of its expected sales drop for the full year.

"We are improving productivity and focusing our R&D and commercial resources more precisely to enable our investments in the best opportunities for innovation and growth," CEO Kenneth Frazier said in a statement.

In premarket trading, Merck shares dropped 66 cents, or 1.42 percent, to $45.88.

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

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Complaints claim Egypt satirist defamed military

CAIRO — Egypt's top prosecutor received complaints Saturday against a popular television satirist less than 24 hours after he returned to the air, as the private TV station that airs his program sought to distance itself from its contents.

The legal complaints and the reaction of the private station CBC highlight the low tolerance this deeply divided country has for criticism of the military and its leaders.

Bassem Youssef, often compared to U.S. comedian Jon Stewart, host of Comedy Central's satirical "The Daily Show, mocked the new pro-military fervor gripping Egypt in his program that aired Friday night.

Youssef also took jabs at the country's powerful military chief, Gen. Abdel-Fattah el-Sissi, lionized in the Egyptian media as a hero after leading a July 3 coup that ousted the country's elected Islamist president following massive protests.

By Saturday, at least four complaints had been filed with the country's top prosecutor, accusing Youssef of defaming the military in his show, a judicial official said. One of the complaints accused Youssef of using phrases that "undermine the honor and dignity of Egypt and its people" in a manner sowing sedition and spreading lies.

The official said no investigation into the complaints had started yet. He spoke on condition of anonymity because he wasn't authorized to speak to journalists. Such complaints, common under Egyptian law, are often shelved until prosecutors decide to start an investigation.

In a statement read during prime time Saturday night, a broadcaster read a statement issued by CBC's board of directors in which the station sought to distance itself from the views expressed by Youssef on his show called "El-Bernameg," or "The Program." The statement appeared to be a reaction to negative feedback from viewers and possibly officials.

The statement noted that the public's reaction to Youssef's Friday night show was "largely disapproving."

"CBC will continue to be supportive of the basics of national sentiment and popular will, and is keen on not using phrases and innuendos that may lead to mocking national sentiment or symbols of the Egyptian state," the station said.

The station added that it is also committed to freedom of the media.

During Friday's show, Youssef imitated el-Sissi's soft-spoken, affectionate way of addressing the public, turning it into a lover's romantic groove. In one skit, a woman named "the Public" calls into a love advice show raving about the love of her life who saved her from an abusive husband.

"He's an officer as big as the world," she coos adoringly, making a pun on a slogan el-Sissi uses in nearly every speech: "Egypt will be big enough to face down the world." Then she adds, "He does have a sovereign streak."

One complainant, well-known politician Ahmed el-Fadaly, referred to the skit of the adoring woman, accusing Youssef of portraying Egypt as a "dallying woman who betrays her husband with military men."

El-Fadaly, who heads an association of young Muslims, also accused the satirist of belittling the armed forces' efforts to deal with terrorism, and of misrepresenting the popular protests against President Mohammed Morsi as a coup, according to a copy of the complaint obtained by The Associated Press.

Another complainant, a group called The Campaign for el-Sissi for President, alleged that Youssef had defamed the military and its leadership through sexual innuendos, according to the Youm7 news website.

Youssef used satire to criticize Morsi during his one year in office. Morsi supporters also sued Youssef for insulting the presidency and Islam, leading to his brief detention.

Before returning to the air after four months of absence, Youssef predicted in an article he wrote that he will continue to be pursued legally by his new critics "who allegedly love freedom dearly — when it works in their favor."

His late-night Friday show caused a stir in a sharply divided country. Since Morsi's ouster, hundreds have been killed in crackdowns on protesters demanding Morsi's reinstatement. Attacks by Islamic extremists against security forces and Christians have increased. A nationalist fervor gripping the country has elevated the military to an untouchable status, leaving little tolerance among the public or officials for criticism.

For now, Youssef appears undeterred. After Friday's show aired, Youssef took to Twitter to remind the public that the show just began: "It is only an episode in a program, people."

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Jay-Z defends deal with store accused of profiling

NEW YORK — Jay-Z — under increasing pressure to back out of a collaboration with the luxury store Barneys New York after it was accused of racially profiling two black customers — said Saturday he's being unfairly "demonized" for just waiting to hear all of the facts.

The rap mogul made his first statement about the controversy in a posting on his website. He has come under fire for remaining silent as news surfaced this week that two young black people said they were profiled by Barneys after they purchased expensive items from their Manhattan store.

An online petition and Twitter messages from fans have been circulating this week, calling on the star to bow out of his upcoming partnership with Barneys for the holiday season, which will have the store selling items by top designers, inspired by Jay-Z, with some of the proceeds going to his charity. He is also working with the store to create its artistic holiday window display.

But Jay-Z — whose real name is Shawn Carter — defended himself, saying that he hasn't spoken about it because he's still trying to figure out exactly what happened.

"I move and speak based on facts and not emotion," the statement said. "I haven't made any comments because I am waiting on facts and the outcome of a meeting between community leaders and Barneys. Why am I being demonized, denounced and thrown on the cover of a newspaper for not speaking immediately?" he said, referring to local newspaper headlines.

The two Barneys customers, Trayon Christian and Kayla Phillips, said this week they were detained by police after making expensive purchases.

Christian sued Barneys, saying he was accused of fraud after using his debit card to buy a $349 Ferragamo belt in April. Philips filed a notice of claim saying she would sue after she was stopped by detectives outside the store when she bought a $2,500 Celine handbag in February.

As the criticism grew, Barneys said Thursday it had retained a civil rights expert to help review its procedures. The CEO of Barneys, Mark Lee, offered his "sincere regret and deepest apologies."

Kirsten John Foy, an official with the Rev. Al Sharpton's National Action Network, said he would meet with Barneys officials on Tuesday to discuss the racial profiling allegations.

Jay-Z — who rose from a life of crime in Brooklyn to become one of the most heralded rappers and one of entertainment's biggest superstars — has in the past called for a boycott of labels perceived to be racist, and has become more political in recent years, from speaking out about the killing of black teenager Trayvon Martin to campaigning for President Barack Obama.

Jay-Z said in this case, he's still trying to find out what happened —which is why he was silent.

"The negligent, erroneous reports and attacks on my character, intentions and the spirit of this collaboration have forced me into a statement I didn't want to make without the full facts," he added.

He also dismissed reports that he would profit from the collaboration. He said he's "not making a dime" from working with Barneys. Instead, his Shawn Carter Foundation, which provides college scholarships to economically challenged students, will get 25 percent of all sales from the collaboration.

"This money is going to help individuals facing socio-economic hardships to help further their education at institutions of higher learning," he said. "My idea was born out of creativity and charity... not profit."

He also said that "making a decision prematurely to pull out of this project wouldn't hurt Barneys or Shawn Carter but all the people that stand a chance at higher education," he said. "I have been working with my team ever since the situation was brought to my attention to get to the bottom of these incidents and at the same time find a solution that doesn't harm all those that stand to benefit from this collaboration."

Jay-Z said he understood what it felt like to be racially profiled — but also didn't want to jump to unfair conclusions.

"I am against discrimination of any kind but if I make snap judgments, no matter who it's towards, aren't I committing the same sin as someone who profiles?" he asked. "I am no stranger to being profiled and I truly empathize with anyone that has been put in that position. Hopefully this brings forth a dialogue to effect real change."

Earlier Saturday, Sharpton held a rally at his National Action Network headquarters in Harlem, saying black New Yorkers should put shopping at Barneys "on hold" if the retailer's response is inadequate.

But it is not the only retailer accused of racially profiling its customers.

Some Sharpton supporters who attended Saturday's rally said they had been profiled in other stores, too. Shane Lee, 51, said he went to the high-end store Bergdorf Goodman to buy shirts last year and the sales staff would not assist him.

"Instead of helping me, they were staring at me," said Lee, who is black. "I felt so uncomfortable that I just left."

A Bergdorf Goodman official did not return a call seeking comment Saturday.

On Friday, Rob Brown, a black actor on the HBO series "Treme" said he was stop because of his race while shopping at Macy's flagship Manhattan store. Brown said in his lawsuit that he was detained nearly an hour by police June 8 after employees contacted authorities about possible credit card fraud.

Macy's didn't comment on the litigation but said in a statement it was investigating.

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Aereo’s CEO signals more hiring in Hub

Internet TV company Aereo continues to expand and is looking to Boston to beef up its engineering staff even as it faces lawsuits across the country from broadcast industry giants.

"Our expectation was there would be a lot of controversy around this, but there was some hope that people would recognize it's a good idea," said Chet Kanojia, Aereo's founder and CEO. "We think we're on to something very big."

Aereo uses over-the-air antennas to capture TV broadcasts and relay the signals over the Internet, letting users watch and record local live programming. Aereo launched its Android app last week and will debut in Detroit tomorrow — the eighth market in its 22-city expansion plan.

"They clearly are getting enough traction that the investors are saying let's expand this nationwide," said Brett Sappington, a media analyst and director of research at Parks Associates in Dallas.

Kanojia said the company plans to add 30 to 40 employees, mostly at its Hub offices on Summer Street. Aereo is headquartered in New York City, but the engineering and software come out of Boston.

"When you're building machines, you kind of have to go where the people that know how to build machines are," Kanojia said.

But as Aereo is expanding, the legal fight over its service is climbing the appellate ladder. A group of broadcasters, including Walt Disney Co., 21st Century Fox Inc., NBC Universal and CBS Corp., have petitioned the Supreme Court to rule on Aereo's legality. Earlier this month, a federal judge refused to shut down Aereo over a copyright claim filed by Hearst-owned WCVB. A trial is scheduled next year.

"When you have these upstart companies that refuse the existing business models, they also ruffle the feathers of the established copyright holders," said Rutgers University law professor Michael Carrier.

At stake is $3 billion in fees that broadcast station owners will receive this year from pay-TV systems to provide signals to subscribers, according to Bloomberg Industries.

"Aereo's business model is based on taking content they don't own and reselling it without compensating the copyright holder," said Dennis Wharton, executive vice president of the National Association of Broadcasters. "We're cautiously optimistic that ultimately the courts will rule in our favor."

Kanojia said he fundamentally disagrees that Aereo is in the business of selling content.

"I think there's a lot of concern or misconception about this company that we are somehow a content company," he said. "It's a pure technology company."

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Accelerating growth

MassChallenge, the Bay State's groundbreaking global startup accelerator and competition, is planning an extensive expansion that will include manufacturing facilities and outposts in Israel as well as potentially Europe, Asia and South America, according to its executives.

"We might launch a new office in London or Bogota toward the end of next year," said John Harthorne, MassChallenge's founder and CEO, "and it would launch its first competition in 2015."

The 4-year-old organization offers free incubator space, mentors and grants to innovative startups.

When it moves to the Innovation District's Boston Design Center next summer, its new digs will include for the first time space for manufacturing materials that its startups will be able to use to build prototypes, said Harthorne.

"One of our goals will be to add lots of equipment and tools," he said.

Lightspeed MFG President Richard Breault, who already has helped several startups build prototypes for free, will be donating the materials and expertise, Harthorne said.

MassChallenge, which saw more than 1,200 applicants this year, also will continue its international expansion by hiring a full-time executive director to head up the program it launched in Israel this year with the support of The Kraft Group and EMC Corp., he said.

It also will look to identify locations for new offices internationally and possibly in the U.S., Harthorne said.

Some options abroad include the United Kingdom, Colombia, Taiwan, Korea and Germany.

The organization, which will give its 2013 awards on Wednesday, is building on a startlingly successful track record.

The 361 finalists who completed its annual, four-month accelerator program from 2010 to 2012 raised a total of $362.5 million in funding, created 2,912 jobs and generated $96.1 million in revenue. Of those 361 finalists, 88 percent are still active, 3 percent were acquired, and 265 are based in Massachusetts.

The 78 winners raised a total of about $157 million, created 850 jobs and generated $35 million in revenue. Ninety-four percent of them are still active, 5 percent were acquired, and 59 are headquartered in Massachusetts.

Harthorne attributes these results partly to the expertise of MassChallenge's army of more than 300 mentors and judges, who include entrepreneurs, lawyers, investors, marketers, finance professionals and other executives.

"What we look for is how big is the idea and its impact on humanity, and how likely are you to achieve that," Harthorne said.

Jordan Fliegel won $50,000 in last year's competition for CoachUp, an online marketplace connecting young athletes with private coaches.

Today, the Boston company has nearly 20 employees, recently launched native IOS and Android apps, and has registered more than 12,000 coaches and 40,000 athletes.

"MassChallenge was super helpful for us," Fliegel said. "It really helped us raise money, develop our connections in Boston and in the great local startup ecosystem, and get us to where we are today."

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GOP hopes 'Obamacare' woes have staying power

WASHINGTON — For nearly five years, Republicans have struggled to make a scandal stick to President Barack Obama's White House. One by one, the controversies — with shorthand names such as Solyndra, Benghazi, and Fast and Furious — hit a fever pitch, then faded away.

But some Republicans see the disastrous rollout of Obama's health law as a problem with the kind of staying power they have sought.

The health care failures are tangible for millions of Americans and can be experienced by anyone with Internet access. The law itself is more closely associated with Obama personally and long has been unpopular with the majority of the American people.

The longer the technical problems persist, the more likely they are to affect the delicate balance of enrollees needed in the insurance marketplace in order to keep costs down.

"There's no question the issue has legs, in part because it affects so many Americans very directly and in part because the glitches with the website are simply one of many fundamental problems with this law," GOP pollster Whit Ayres said.

The cascade of computer problems began Oct. 1, when sign-ups opened for the marketplaces at the center of the law. Administration officials blamed the problems on high volume, but have since acknowledged more systemic issues with HealthCare.gov.

White House officials contend the website is just one piece of the broader law offering an array of benefits. They say that when the online issues are fixed — the latest estimate is the site will be working normally for most users by the end of November — few people will remember the problems that have marred the opening weeks of the six-month enrollment window.

"It says a lot about Republicans that their focus here is not on helping Americans get insured, but on making political hay of this mess," said Dan Pfeiffer, Obama's senior adviser.

There's another mess the White House is dealing with that could have long-lasting implications, too: U.S. government spying on foreign leaders. The scope of the surveillance programs was first made public in June and the revelations keep coming. The latest concern the alleged monitoring of German Chancellor Angela Merkel's cellphone communications.

But unlike with the health law, many Republicans support the government surveillance policies, making it more difficult for the party to create a political furor over the revelations.

For GOP lawmakers, the White House's stumbles on the Affordable Care Act have come at an optimal time, just one week after their strategy to shut down the government in exchange for concessions on health care imploded.

The health care debacle has overshadowed some of the Republican missteps and the GOP appears more than happy to keep the spotlight where it is.

Republicans have scheduled a series of congressional hearings on the program's shortcomings, and have called for officials, including Health and Human Services Secretary Kathleen Sebelius, to be fired. She is set to testify this coming week before a House committee.

Kevin Madden, a GOP strategist, said Republicans should be wary of overreach, and he urged the party to "focus on the basics" in the hearings. If they do, he said, "they can really align themselves with a lot of public anxiety about what's wrong with Washington."

Anxiety about the website's problems also appears to be on the rise among members of the president's own party, a worrisome sign for the White House.

Ten Democratic senators urged Sebelius in a letter to extend the insurance enrollment window beyond the March 31 deadline; White House officials say they don't believe that will be necessary. Also, Democratic leaders have been critical about the seeming lack of preparedness for the sign-up rollout.

"As far as I'm concerned there is no excuse for that," Senate Majority Leader Harry Reid, D-Nev., told Las Vegas radio station KNPR. "I think the administration should have known how difficult it was going to be to have 35 million or 40 million people to suddenly hook up to a place to go on the Internet."

The health care law has been unpopular with large swaths of the American public ever since Obama signed it into law in 2010. A CBS News survey taken last week found that 43 percent of Americans approve of the law, compared with 35 percent in May.

Crisis management expert Eric Dezenhall said that if the White House wants to prevent the current troubles from being a long-term problem, it will have to do some basic damage control.

"There has to be a component of hand-holding, clarity and bedside manner with the early stages of Obamacare," he said.

The White House appeared to start taking a page from that playbook this past week.

On Thursday, the Centers for Medicare and Medicaid Services began holding daily briefings to address technical problems with the website, though the many of the issues still remain shrouded from the public.

Republicans are turning to a familiar tactic, congressional hearings. It's the same tactic they took as they looked to connect Obama to wrongdoing in the deaths of Americans in Benghazi, Libya, the bankruptcy of the solar energy company Solyndra, the Bureau of Alcohol, Tobacco, Firearms and Explosives' failed gun-smuggling sting operation known as "Fast and Furious," and a number of other problems that have arisen since the president took office.

"This is more than a website problem. We are also concerned about what happens next," GOP Rep. Fred Upton of Michigan, chairman of the House committee that will hear from Sebelius on Wednesday, said in the Republicans' weekly radio and Internet address.

Dezenhall said that while investigations may help Republicans do some damage to the health care law, "there's a difference between roughing up your enemy and defeating them."

"They can certainly put some points on the board but I don't see a great Republican coup anytime soon," he said.

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AP News Survey Specialist Dennis Junius contributed to this report.

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Online:

Health care site: https://www.healthcare.gov

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Follow Julie Pace at http://twitter.com/jpaceDC and Nancy Benac at http://twitter.com/nbenac

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