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Snow-smashed Bay State 
lobbying feds for millions

Written By Unknown on Sabtu, 28 Maret 2015 | 20.25

The battery of snowstorms that slammed the Bay State this winter killed 25 people in less than a month and injured more than 1,500, the state revealed in its pitch to the White House for hundreds of millions of dollars in federal disaster aid.

The whopping total — believed to be the first public accounting of the winter's death toll — spanned a 28-day period between January and February, when state officials say it snowed all but three days and rung up an estimated $400 million in snow removal costs and damages. Boston also set a record for snowiest winter, eclipsing a two-
decade-old mark.

The four-week pummeling shuttered businesses and crippled the MBTA to the tune of $40 million in storm-related costs, Gov. Charlie Baker wrote to the White House. The T, he said, also estimated 
$4.7 million in lost revenue — though that number is likely to grow — after it shut its system down on three occasions and struggled for weeks to return to full service.

"We understand the unique nature of our request to FEMA to declare a prolonged period of snow as a federal disaster," Baker said at a State House press conference. "But taking into account the unrelenting snowfall over those 28 days and the freezing temperatures over that time ... we're confident our request meets 
the threshold."

Neither Baker nor Kurt Schwartz, the director of the Massachusetts Emergency Management Agency, could say how much money the state would ultimately seek. A declaration could open the door to 75 percent in reimbursements to the state, cities and towns, but Schwartz said it is "quite likely" the total costs will ultimately eclipse the state's $400 million estimate.

Of the 25 deaths tied to the record-breaking winter, eight people suffered "cardiac episodes" while shoveling, officials said. Seventeen others died from what the chief medical examiner's office called "blunt force trauma," either from being hit by snowplows or cars, falling from roofs while clearing snow or even slipping on ice.


20.25 | 0 komentar | Read More

Fenway Remy's: Play ball

Jerry Remy's Sports Bar & Grill, the Fenway restaurant that abruptly closed earlier this month, is slated to reopen under new ownership and management on April 13 — the day of the Red Sox home opener against the Washington Nationals at Fenway Park.

The Boston-based Cronin Group is buying the restaurant from Red Sox Nation president and NESN color analyst Jerry Remy and his partners, founder Jon Cronin confirmed yesterday.

Cronin, who had been an investor in the restaurant, owns and operates the Jerry Remy's location in the Seaport District under a licensing agreement with Remy. The Fenway restaurant also will operate under a licensing agreement.

"It's a good area with a lot of development going on, so we see big potential there for a nice restaurant," Cronin said. "We're going to do a quick makeover, implement a whole new made-from-scratch menu and upgrade the food and beverage offerings."

Cronin hopes to sign a new lease with the building's owner, a Boston Red Sox affiliate, next week. He is also applying to have the restaurant's liquor license transferred to his company.

Remy's namesake restaurant closed without warning March 3, and Remy and his primary partner, John O'Rourke, have been silent about what happened.

Reached yesterday, Remy still wouldn't talk about why it closed, but said he "couldn't be more ecstatic" that Cronin is taking over.

"We feel like it's going to be in very stable hands now that he's going to be the owner and operator," Remy said. "John was our major investor, and I'm glad it is in his hands. We're pleased that it turned out the way it did."

Jerry Remy's Sports Bar & Grill opened in the shadow of Fenway Park in March 2010 after a $5 million build-out. A large roof deck was later added.

There's a lot of work before it reopens, including hiring 200 employees, according to Cronin, who encouraged former employees to apply. The revamped menu will include business lunch options for small and large groups.

The Cronin Group owns a string of other restaurant/bars in Boston, including Tia's Boston, Market, the Atlantic Beer Garden and Whiskey Priest in the Seaport District, and the Playwright and Boston Beer Garden in South Boston. It also owns Temazcal Tequila Cantinas in the Seaport District and Lynnfield, and Tony C's Sports Bar & Grill in Somerville and Burlington.


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The Ticker

Liberty Mutual re-org affects 80 Mass. jobs

Liberty Mutual is eliminating 1,100 field customer service positions, including 80 in Massachusetts, in its sales offices around the country, and replacing them with 1,000 customer service jobs that will be centralized in six call centers, including one in Springfield, the Boston-based insurance company said yesterday.

Employees whose jobs are being eliminated will be able to apply for positions in the call centers — which will also be in Arizona, Indiana, Texas, Florida and Pennsylvania — as well as positions elsewhere in the company, said Liberty Mutual Vice President John Cusolito. Workers who end up moving to a call center will be given relocation packages, Cusolito said. Other employees whose jobs are being eliminated will be given severance packages, he said.

Sixty-five of the new positions will be added to the Springfield call center this year, followed by more next year, he said.

North Andover woman gets six months for stealing from employer

A North Andover woman has been sentenced to six months in jail after pleading guilty to stealing $1.7 million from her employer.

Attorney General Maura Healy said 44-year-old Dorothy Giard pleaded guilty to larceny and false bookkeeping charges yesterday in Superior Court in Salem.

Judge David Lowy imposed a six-month jail sentence followed by 10 years of probation and ordered her to pay $1.7 million in restitution.

Prosecutors say Giard stole the money while working as the officer manager for Diamond Ironworks in Lawrence, a steel fabrication company. Authorities say she spent the pilfered cash on international vacations, high-end cars, spa services and other luxury items.

Road funding bill heads to Senate

The Senate could pass a $200 million local road funding bill and deliver it to the governor by late next week, according to the chairman of a committee that reviewed the bill yesterday.

Senate Committee on Bonding, Capital Expenditures and State Assets Chairman John Keenan (D-Quincy) told reporters after a brief hearing that he expects it to come up Wednesday. Combined with a total of $130 million in local road and pothole funding released by Gov. Charlie Baker this year, the bill would bring the total aid for local roads to $330 million, according to Keenan.

"I think probably the winter highlighted how essential it is to get this money there, and also because Gov. Baker released the additional $100 million that was authorized last year — he released it in January — so municipalities are really looking to combine that with this authorization to get the work done that they have to get done," Keenan said.

The bill cleared the House unanimously Wednesday.

  • Life Time Fitness announced health and fitness industry veteran Michael Diatelevi, left, as general manager of the company's first sports, professional fitness, family recreation and spa destination in the Boston area. Life Time Athletic Westwood at University Station is under construction with a planned opening in summer 2015.

20.25 | 0 komentar | Read More

Lawmakers to debate eliminating film tax credit

Lawmakers will hold what promises to be a heated and contentious hearing next week to discuss eliminating the film tax credit in favor of expanding the earned income tax credit — a move officials say would add more than $100 million to the state's economy 
every year.

"We can put more money in the hands of our working families and just by doing that we can create more jobs than the film tax credit delivers," said Paul McMorrow, a spokesman for the state Executive Office of Housing and Economic Development. "That's a really simple choice."

Gov. Charlie Baker's budget proposes doubling the state's earned income tax credit to 30 percent of the federal credit. To offset the cost of the tax break for families, Baker would phase out the $80 million film tax credit.

McMorrow said a Department of Revenue analysis conducted on behalf of the Baker administration found the proposal would add $125 million per year to the state's economy and create between 1,000 and 2,000 jobs every year. It would also increase disposable income by about $200 million — money that people would spend to boost the state's economy.

Still, the proposal has come under fire from the film industry, which says the credit is vital to Massachusetts jobs.

"There are thousands of people whose jobs have been created by the Massachusetts film tax credit," said a spokesman for the Massachusetts Production Coalition. "Several of them will be testifying at the hearing about how the strong and growing film industry in Massachusetts has changed their families' life. If the film tax credit goes away, their jobs will go away."


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'Blackfish' star on tell-all book's shocking claims about Seaworld and its legal threats against him

SeaWorld is about to take another hit as hard as the force of a 5,000-pound orca, as a damning new tell-all book hits shelves, claiming the company is an evil, money-grubbing corporation.

In the new book, "Beneath the Surface: Killer Whales, SeaWorld, and the Truth Beyond 'Blackfish'" former Orca trainer John Hargrove reveals explosive details of alleged physical and mental abuse that killer whales were forced to endure in captivity. Those conditions, Hargrove said, led to brutal and often fatal attacks by killer whales on their trainers, which were swept under the company's rug. Making matters worse, SeaWorld has allegedly silenced trainers who sued the company by dragging out court cases, then promising money if they agreed to a gag-order.

"[Director] Gabriela Cowperthwaite did such a great job with 'Blackfish,'" Hargrove told TheWrap, "but she only had 83 minutes and what I did with my book was I took my 14-year career and I gave all the high points and all the low points. I did not set out to do a tell-all book but that's what happened."

The book's release comes within the same week that a class-action lawsuit was filed against SeaWorld by customers who claim they would have never set foot in the company's theme parks had they known the deplorable conditions under which the whales were being kept. Another lawsuit filed in September 2014 claims SeaWorld Entertainment misled investors early on when it denied that fallout from the Magnolia-CNN Films documentary "Blackfish" had anything to do with decreasing attendance.

TheWrap spoke with Hargrove about his book "Beneath the Surface," the theme park chain's repeated threats against him and what really happened during his 14 years training 20 killer whales.

TheWrap: Are you hoping the book will finally send the company packing?
John Hargrove:
Well, the fact I'm sure of is that last year they lost $80 million in revenue and they lost a million visitors.

SeaWorld operates 11 parks with more 89,000 sea animals. The company reported a slump in attendance was the main reason for a 6 percent drop in revenue, to nearly $1.4 billion in 2014. Sounds like they're not too worried. Or at least that's how they're spinning it. Are you angry that even though "Blackfish" was a huge success, it didn't manage to close down SeaWorld parks?
Well, I think it's just going to gain momentum and you're going to see more and more of it now because there is a class-action lawsuit against SeaWorld as of [Wednesday] morning. Within hours, there were thousands of people that had already signed that class action case. People saying they had gone out and had platinum passes and spent thousands of dollars over the last few years. And, if they had known what was in "Blackfish," or John Hargrove's book, they would not have gone. So they want their money back.

Your book was named in the lawsuit and SeaWorld even threatened you, claiming you signed a non-disclosure agreement. Did you?
My book was one of the resources named in the lawsuit. People basically said they would have not have taken their children or spent the amount of money that they spent had they known what was in my book. So now, Sea World has issued a statement, that you know, [the lawsuit] is a publicity stunt to coincide with the release of John Hargrove's book, that I was just trying to gain more publicity, which is so stupid because by issuing that PR statement, that's exactly what happened. There was a very poorly-written employment agreement that I signed in 2008 when we were owned by Anheuser-Busch, which is a beer company, mostly a non-compete agreement for those working in beer companies to not give away trade secrets. Confidentiality agreements have to be very specifically tailored. They have to give you a specific timetable, like 3 years or one year, and they also have to be very specific to what's considered confidential and what is not. You can't just be broad. This one said everything we learned or did was confidential and it never ends so, even if we quit, we're not allowed to speak about any of it for the rest of our lives. No judge in the country would enforce that.

Did they threaten you with a lawsuit?
They sent a total of three threatening legal letters. I had Macmillan [Publishers] attorneys looking at it and I also hired my own law firm to rep me and they are a powerhouse firm. They basically told them I had a first amendment right to free speech and they cannot silence me. The last threatening letter I got form them was probably six weeks ago. They even threatened to file an injunction to stop my book.

Is it true TheWrap was named in one of those letters?
At this point they've already been sued for investor fraud for not revealing the harmful effect that "Blackfish" had on their company. They're still telling investors, 'Oh no, it hasn't impacted our business at all.' In fact it did impact their business and they hid that's why there's this Federal lawsuit against them for investor fraud. Part of the case is that investors are saying that SeaWorld was not honest about the risks that trainers are under when they're interacting with killer whales. Which is why this letter is so stupid because they're telling me flat out, 'You better not talk about those incidents.' They're not saying those incidents didn't happen they're saying, 'you gave this quote to TheWrap and that implies that you plan on talking about it. And if you talk about it, you're going to be invitation of a confidentiality agreement.'"

You claim the company is "soulless." Can you elaborate?
Trainers sued SeaWorld because they were nearly killed by whales and the end result was SeaWorld would force them into a settlement and gag ordered every single trainer. They tried to threaten me and scare me so I wouldn't write the book. This is very predictable behavior by SeaWorld. They're bullies, but the difference is this time I'm the first trainer that they're not shutting up.

Did they try and offer you money?
No. Filmmakers kept my participation in "Blackfish" a secret until the day it premiered at Sundance. So, I think the reason why they didn't try to pay me off is because by that point I was already so out there publically saying everything that they have done, it was too late.

You tell a horrific story about a trainer who was forced to walk to an ambulance 200 yards away after an orca broke her neck because SeaWorld didn't want visitors to know what had happened. Tell me about that.
Joanne Webber broke her neck during the show. They made Joanne get out of the pool by herself and didn't even try to help her because they didn't want to draw attention to her being hurt then they made her walk on her own with a broken neck to the trainer offices. Then, they tried to make her take off her wetsuit because they did not want the paramedics to cut it off but. Because she had a broken neck she could not take the wetsuit off and SeaWorld personnel basically took the suit off and made her put on regular clothes, all in an effort to save money. Making things worse, instead of allowing the ambulance to drive up to 'Shamu' stadium, they did not want people to see the ambulance and draw any attention to it, so they made her walk on her own I think 200 yards to the waiting ambulance, which was out of sight to the public. So she sued for negligence and she settled and she was gag ordered.

2015 TheWrap news inc. All rights reserved.


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The Ticker

Written By Unknown on Jumat, 27 Maret 2015 | 20.25

House votes Suffolk Downs simulcast race extension

With just days until a license is set to expire for Suffolk Downs, the House passed a bill yesterday giving the racetrack another month to simulcast races while lawmakers continue work on legislation allowing live racing to continue for the next two years at the track.

Suffolk Downs' license to simulcast is due to expire March 31 and the bill passed in the House gives the track until April 30.

Suffolk Downs announced in late February that it had reached an agreement with the New England Horsemen's Benevolent and Protective Association on a two-year deal to lease the East Boston track to the horsemen. The agreement, which would allow for live horse racing in 2015 and 2016, is subject to approval by the Massachusetts Gaming Commission and the Legislature. The House and Senate both passed measures in a midyear spending bill that would authorize simulcasting and up to 50 days of live horse racing at Suffolk Downs through July 31, 2016. That bill has bogged down over disagreements between Democratic legislative leaders on other policy matters.

Treasurer wants pension fund changes

Treasurer Deborah Goldberg yesterday proposed using the $61 billion pension fund to make a stand on corporate diversity, environmental stewardship and wage equality issues.

A subcommittee of the Pension Reserves Investment Management Board signed off yesterday on a new policy developed by Goldberg that would direct the Pension Reserves Investment Management (PRIM) Board to use its proxy vote as an investor to oppose nominees to corporate boards unless at least 25 percent of a board's membership is made up of women and minorities.

Goldberg's policy would also direct PRIM to vote for corporate policies that invest in renewable energy and would ask companies in which PRIM invests to provide energy efficiency policies, to stop "misleading advertising" to young people, to increase health warnings on cigarettes, to adopt formal recycling policies, and to implement human rights standards and workplace codes of conduct.

PRIM holds stock in roughly 9,000 companies, and can vote on corporate policies and board appointments as a shareholder.

Baker names new revenue commissioner

The Baker administration yesterday introduced a former managing director of Bain Capital as the state's next revenue commissioner.

Mark Nunnelly next week will take over the post from Amy Pitter. Nunnelly was also named as special advisor to Baker for technology and innovation competitiveness.

Nunnelly, who joined Bain Capital in 1989 as a managing director, has held a number of leadership roles as part of the firm's growth and global expansion, and worked extensively in the business services and technology industries. Nunnelly became a special limited partner of Bain Capital in 2014 and serves on several not-for-profit and for-profit boards of directors.

  • ROI Corp. has announced the appointment of Denis Mezheritskiy of Concord to the position of business broker. Mezheritskiy will assist individuals interested in selling their businesses as well as potential buyers.

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Spruce up home for spring rush

With the busy spring real estate season starting, it's time for sellers to spruce up their property.

The work can go a long way toward luring potential buyers clicking through the photos that accompany online listings as well as bump up a home's selling price.

For sellers on a limited budget, painting can work wonders.

"Paint is our No. 1 go-to tip and trick before we do anything," said Peter Souhleris, co-star of the A&E TV show "Flipping Boston" and co-owner of CityLight Homes of Peabody. "Just $200 in paint has given us back $20,000 to $30,000 versus if you left it and you thought to yourself, 'Oh well, someone is going to come in and paint it the way they want.' It's just the biggest bang."

For those with bigger budgets, stagers are an option for empty homes.

"Every builder, every flipper is watching every penny they have, so the fact that so many of them do stages attests to the fact that it obviously brings added value to the house," said Betsy Konaxis of BK Classic Collections Home Stagers in Beverly. "I basically can bring in furniture for empty homes so that ... each room is identified for what it is. It helps create that image of how (buyers) want to live."

Stagers also will work with a sellers' own decor, laying out furniture and redistributing wall art.

"The process starts online," Konaxis said, referring to photos illustrating home listings.

"You don't know who you eliminated because they didn't like what they saw online. I look at everything through the camera lens."

De-cluttering a home is something that owners can tackle on their own. "It's packing up as much as necessary, making your space look as big as possible," said Rosalee DiScipio of McGeough Lamacchia Realty in Waltham. "Knickknacks, personal items, excessive family pictures — stuff like that we always recommend to put away."

Buyers should be able to picture themselves in a home.

"If they see your family in this house, it's going to be harder for them to imagine being (there)," DiScipio said. "It's a mental thing."

Lighting is an easy way to modernize and brighten up a home for short money, said Souhleris, who suggests fixtures that are simple and clean. "Get rid of anything that has brass and oak in it or any of the old ceiling ones that have brass and gold," he said.

Curb appeal also is key. Clear gutters, make sure downspouts drain water away from the house, clean up yard debris, mow the lawn, weed, and trim overgrown bushes.

"If the front is looking bad, it becomes a 'drive-by,'" Souhleris said.

But in a tight real estate market, with not as much inventory of homes for sale, do sellers really have to bother with a spruce-up?

"We see some houses sitting that are bruised and abused," DiScipio said. "Had they done some upgrades, maybe they wouldn't be sitting for as long. But if you just want to be done, list it at the right price, and it will sell."


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Hotel bid process seen as ripe for collusion

Massport is allowing development groups seeking to build an $800 million Seaport District hotel to team up with the same hotel partners, creating an unusual situation that critics say could be exploited and lead to collusion if a hotel chain was to share one bidder's sensitive financial information with its competitor.

"If a bidder is clued in on another's bid, the integrity of the process could be compromised and the public may wind up with a raw deal," said Mary Z. Connaughton, director of government transparency for the Pioneer Institute. "I would hope there would be some type of firewall. The hotels themselves would be privy to two different bids and each one will be asking for some form of public subsidy ... They need tight controls to make sure collusion does not exist."

According to Massport, it has received six bids from developers to build the new headquarters hotel on two Massport-owned parcels at Summer and D streets as part of the planned $1 billion expansion of the Boston Convention & Exhibition Center.

One development group, Boston-based Fallon Co. and Capstone Development of Washington, D.C., has submitted three separate bids, each with a different hotel brand: Hilton Worldwide, Hyatt Hotels and Marriott International.

Another development team, Boston-based Accordia Partners and RIDA Development of Houston, has submitted two bids, one with Hilton Worldwide and another with Marriott International.

A third group, New Boston Hospitality, has teamed up with only one hotel partner, Omni.

Massport spokesman Matthew Brelis defended its request-for-proposals process, saying it will spur more bids and greater options for the authority.

"This is one of the hottest real estate markets in the country and the more bids we receive, the greater the competition and ability to negotiate on behalf of the public. Four different hotel brands expressed interest, including Hilton and Marriott, with more than one developer. That speaks to the strong market, and the national hotel brands' eagerness to win," Brelis said. "Each of the hotel bids are unique. If any evidence of collusion by national hotel brands surfaces in our review, then we will take appropriate action."

David Tuerck of the Beacon Hill Institute said the "potential clearly exists" for hotel operators to share information between the different bidders, raising the issue of how the hotels could uphold a fiduciary responsibility to competing clients. It could also weaken Massport's leverage, he said.

"It seems to me they have already lost bargaining power when they have permitted bids from companies that are sharing hotel operators in their proposals," he said. "It creates a downward pressure because it is in the interest of the bidders to bid as little as possible."

Fallon, Capstone and Marriott did not return repeated messages. Kirk Sykes, manager of Accordia, and RIDA both declined to comment.

A spokeswoman for Hilton defended its decision to partner with competing developers, saying in a statement, "This process was mandated by the MCCA and Massport ... All parties involved were simply following the rules they've outlined."


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Uber, insurance companies agree on bill

Ride-sharing company Uber has reached an agreement with major insurance companies on a model bill that would cover drivers anytime they are working.

"It's a national agreement with a number of major insurance carriers to come together and agree on some negotiated insurance language for state legislation of transportation network companies," said Meghan Joyce, general manager of Uber East Coast. "We can use (the agreement) to provide clarity to insurance across the nation."

Uber and Lyft — which also signed the agreement — have been criticized for gaps in insurance coverage, as well as blurring the line between personal and commercial insurance policies. The agreement, which will be sent to state legislators across the country, provides lawmakers with a compromise both sides have already agreed to.

"Auto insurance carriers, Transportation Network Companies, and trade associations stand together in support of this insurance legislation, and encourage you to utilize this language," the letter to legislators says.

Uber and Lyft have faced scrutiny from cab drivers and local governments that want regulations for ride-sharing companies to put them on a level playing field with taxi companies.

Gov. Charlie Baker's administration is in the middle of its own regulatory process, and expects to file a bill in the coming weeks.

Bill Pitman, a Baker spokesman, said: "The administration continues to engage with municipalities, industry leaders and public safety advocates as it works to draft a statewide regulatory framework that embraces innovation and enhances the safety of riders and drivers."


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New Balance gives Boston its sole

New Balance is releasing a new running shoe with a distinctive Boston flavor just in time for next month's 119th Boston Marathon.

The limited-edition Fresh Foam Zante Boston sneaker features the Boston skyline on its insole and the word "Fastah" on the sole — that's "faster" in Boston parlance. New Balance also inscribed its logo with "Boston."

"With its extraordinary culture of both sports fanatics and fitness fanatics, it's safe to say that nobody runs like Boston," the company said in a statement.

The sneakers go on sale for $114.95 at New Balance's Boston store and on newbalance.com on April 6.


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Toyota outlines growth architecture after lull from recalls

Written By Unknown on Kamis, 26 Maret 2015 | 20.25

TOYOTA, Japan — Toyota Motor Corp. is ready to ramp up its growth again, emerging from an intentional soul-searching lull brought on by its massive global recall scandal that began in 2009.

The world's top-selling automaker outlined a new "architecture" Thursday centered on product development and manufacturing initiatives it hopes will be more fail-proof against quality problems, and allow it to keep growing in a "sustainable" way.

The first cars under the system, medium-sized front-wheel drive cars, will roll out later this year, and be expanded to half its lineup by 2020, the Japanese automaker said.

Executive Vice President Mitsuhisa Kato acknowledged that managing the company's global scope and model lineup had become an increasing challenge.

"It is making our effort to come out with ever better cars increasingly difficult," he told reporters at headquarters in Toyota city, central Japan.

He pointed to how President Akio Toyoda had decided to taken an "intentional pause" in rapid growth to strengthen the automaker's competitiveness.

The recall fiasco resulted in more than 10 million vehicles being recalled around the world, mostly in the U.S., for a range of problems, spanning faulty brakes, sticky gas pedals and ill-fitting floor mats. Toyota paid penalty fines in the U.S. and faced a number of lawsuits.

Before the scandal, Toyota had a reputation for high quality, centered around its super-lean production methods that empowered workers to hone in on quality control. Toyota has acknowledged repeatedly that it had tried to grow too fast.

There was no single massive change being pushed at Toyota under the new program, but rather a combination of efforts to guard against quality flaws while maintaining an edge in product appeal, such as cool-looking exterior designs and safety technology.

The plan that Kato kept calling "TNGA," short for Toyota New Global Architecture, is similar to solutions being pursued by other global automakers, such as Japanese rival Nissan Motor Co. and Volkswagen AG of Germany, which are grappling with balancing quality and growth.

Toyota is facing the challenges of addressing the complexity of developing cars while costs were ballooning for new needs such as compliance and safety features, and consumers weren't willing to pay more, said Deutsche Securities senior analyst Kurt Sanger after hearing Kato's presentation.

"It's impressive in its aspirations and frankly the scale," he said of Toyota's plans.

In 2014, Toyota sold 10.23 million vehicles, beating out Volkswagen and General Motors Co.

In a demonstration at one of Toyota's plants, it showed a variety of technologies it had developed to grow ever leaner while making good cars, ranging from better synthetic leathers to shinier paint jobs.

Toyota said it had programmed robots to simulate the delicate hand movements of a craftsman to shape a car's body. It also created its own way of screwing with lasers that shortened the welding of each screw from 2 seconds to 0.3 seconds. It shortened the line for stamping a metal part from 20 meters (65 feet) to 2 meters (6 feet) by making the machines smaller.

Toyota said it will continue to focus on keeping costs down, while taking on the new steps such as using existing plants and facilities to carry out the changes.

Production lines will be simplified and slimmed down, downsizing facilities such as painting booths, and switching to equipment that sits on the plant floor, rather than suspended from above, as is standard today.

Among the other main measures:

— improving the basic vehicle parts such as platforms, which will become more sturdy and rigid for increased safety, as well as powertrains, such as gasoline engines, that will be in all the vehicles.

— boosting fuel efficiency it offers through an aggressive push in hybrids, which switch back and forth between a gas engine and an electric motor to deliver an efficient drive, such as the Prius.

— improved handling by lowering the center of gravity of vehicles.

— enhancing safety features through sensors, radars and cameras that avoid and detect crashes.

___

Follow Yuri Kageyama: http://twitter.com/yurikageyama


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New law provides protection for domestic workers

A law set to take effect April 1 includes new rules for those who employ the state's estimated 67,000 domestic workers — a part of the labor force that until now has lacked some of the protections that other workers­ take for granted.

"Domestic workers contribute in significant ways to our economy, often working long hours to assist individuals and families every day," said Grant Woodman, a spokesman for Attorney General Maura Healey, whose office is drafting the regulations under which the Domestic Workers' Bill of Rights will be enforced. "This law makes clear that domestic workers have many of the same protections as other workers in our community and also provides important new rights for live-in workers who are especially vulnerable because of their relative isolation."

The law, approved by lawmakers and signed by former Gov. Deval Patrick last year, defines a domestic worker as anyone who is paid by an employer other than an agency to do cleaning, cooking, laundry or care for children, the sick or the elderly in a home.

If the employee works 16 hours or more per week, the employer must provide a written contract detailing, among other things, the worker's job responsibilities, pay and work hours, and benefits.

Lydia Edward of Greater Boston Legal Services and campaign coordinator for the Massachusetts Coalition for Domestic Workers, said the law is the result of four years of organizing on behalf of workers who are often exploited, sexually harassed and verbally or physically abused.

"The most important thing for employers to understand," Edward said, "is that they have certain obligations intended to ensure that their employees are treated with respect and dignity."


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$17M fraud penalty rocks state biotech co.

A Bay State biotech company will pay more than $17 million to settle charges that its executives lied to investors and used their money for personal expenses, including massages and leasing a BMW.

"They were lying about what they had to sell, how soon it was likely to get to market, how and whether it was under the governmental approval processes and how much their company might be worth," said Paul Levenson, regional director of the Securities and Exchange Commission's Boston Regional Office.

Danvers-based BioChemics was accused of defrauding investors from 2009 until mid-2012, falsely claiming that:

• The company had partnerships with other drug companies.

• Two drugs were under FDA review.

• The company had been valued at more than $1 billion when it had an internal valuation of $200 million.

BioChemics raised more than $15 million from at least 70 individual investors for a transdermal drug delivery system it claimed it was developing.

John Masiz, the founder of BioChemics, Gregory Kroning and Craig Medoff also were named in the initial SEC complaint.

"Investor funds were used to pay for personal expenses of Masiz (such as meals, massages, clothing and sporting goods) and Kroning (such as a leased BMW automobile)," the complaint said.

BioChemics must pay more than $17 million to the SEC, including "ill-gotten gains," interest and a $750,000 penalty, the SEC said. The SEC will then seek to repay investors.

A lawyer representing BioChemics did not respond to requests for comment.


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The Ticker

Smart meters come to Hub

Boston will replace all 8,000 parking meters in the Hub with "next generation" smart meters.

The Back Bay and Innovation District will get multispace meters, which allow more vehicles to fit in a block of spaces, the city said. The rest of the parking meters will be replaced by meters that will accept change, credit cards and cell phone payments. The smart meters also will collect real-time data about whether a space is occupied.

The move, announced yesterday as part of Mayor Martin J. Walsh's transportation initiatives, is expected to cost $5 million. Replacement of the parking meters will begin by the end of the year.

Heinz buy of Kraft just latest merger

Wall Street's deal-making renaissance shows no sign of ending.

Heinz's $45 billion acquisition of Kraft Foods, announced yesterday, has helped maintain the momentum in the market for mergers and acquisitions.

So far this year, companies globally have struck deals worth $802 billion, according to data provider Dealogic. That compares with $733 billion in the first quarter of 2014 and makes it the best first quarter for deal-making in at least five years.

Other big deals in the works include Simon Property's bid to buy rival Macerich, and AbbVie's deal to buy Pharmacyclics.

  • Tufts Health Plan announced the appointment of Marc Backon, left, to senior vice president and chief sales and marketing officer for its commercial products division. Backon brings more than 25 years of health care ex­perience to this position.

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Rates drop for summer

The price of electricity is going down this summer for National Grid cus­tomers, but rates will remain higher than a year ago — with no relief in sight.

"It's a little higher than last summer," said Jake Navarro, a spokesman for National Grid. "This is a market-­based phenomenon and over time, because of the natural gas constraints in the region, these power supply prices are going to continue to creep up."

National Grid this week announced a 26 percent rate cut for its electric customers, or about $32 on a typical bill, and a 25 percent to 30 percent cut for natural gas customers, or $9 to $12 on a typical bill, starting May 1. The Department of Public Utilities yesterday approved the new rates.

Eversource, the state's major electricity delivery company, has said it hopes to be able to file for a rate decrease in a few months.

Last fall, the DPU approved a 37 percent rate hike for National Grid electric customers. At the time, National Grid blamed the increase on insufficient natural gas pipeline ca­pacity to fuel power plants. Gov. Charlie Baker has thrown his support behind efforts to add a new natural gas pipeline in the region.

"The region as a whole has become more reliant on natural gas, but without building the highways to get natural gas here," Navarro said. 'We need additional gas capacity in the region and until we get it, it looks like the power supply prices will continue to trend up."

A legislative committee is investigating the increases in electricity prices in Massachusetts, and a DPU spokeswoman said it has started looking into "ways to improve the retail electric competitive supply market."


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Lowell woman sentenced for tax fraud scheme

Written By Unknown on Rabu, 25 Maret 2015 | 20.25

BOSTON — A Lowell woman who helped run a family-owned temporary employment agency has been sentenced to more than six years in federal prison for defrauding the IRS of more than $5 million in tax revenue.

Margaret Mathes sought leniency because she had recently been diagnosed with possible Alzheimer's disease, but was instead punished with an enhanced sentence for greatly exaggerating her symptoms.

The Sun  reports that in a scheme that spanned eight years, the 67-year-old Mathes and her family, owners of the former International Temp Agency and later JP Company, avoided paying taxes by paying workers under the table to avoid records.

Between 2004 and 2009, Mathes and her family reported a $2.2 million employee payroll, but hid an additional $25.8 million in wages. She had pleaded guilty in August.

___

Information from: The (Lowell, Mass.) Sun, http://www.lowellsun.com


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AP Investigation: Slavery taints global supply of seafood

BENJINA, Indonesia — The Burmese slaves sat on the floor and stared through the rusty bars of their locked cage, hidden on a tiny tropical island thousands of miles from home.

Just a few yards away, other workers loaded cargo ships with slave-caught seafood that clouds the supply networks of major supermarkets, restaurants and even pet stores in the United States.

But the eight imprisoned men were considered flight risks — laborers who might dare run away. They lived on a few bites of rice and curry a day in a space barely big enough to lie down, stuck until the next trawler forces them back to sea.

"All I did was tell my captain I couldn't take it anymore, that I wanted to go home," said Kyaw Naing, his dark eyes pleading into an Associated Press video camera sneaked in by a sympathetic worker. "The next time we docked," he said nervously out of earshot of a nearby guard, "I was locked up."

Here, in the Indonesian island village of Benjina and the surrounding waters, hundreds of trapped men represent one of the most desperate links criss-crossing between companies and countries in the seafood industry. This intricate web of connections separates the fish we eat from the men who catch it, and obscures a brutal truth: Your seafood may come from slaves.

The men the AP interviewed on Benjina were mostly from Myanmar, also known as Burma, one of the poorest countries in the world. They were brought to Indonesia through Thailand and forced to fish. Their catch was then shipped back to Thailand, where it entered the global stream of commerce.

Tainted fish can wind up in the supply chains of some of America's major grocery stores, such as Kroger, Albertsons and Safeway; the nation's largest retailer, Wal-Mart; and the biggest food distributor, Sysco. It can find its way into the supply chains of some of the most popular brands of canned pet food, including Fancy Feast, Meow Mix and Iams. It can turn up as calamari at fine dining restaurants, as imitation crab in a California sushi roll or as packages of frozen snapper relabeled with store brands that land on our dinner tables.

In a year-long investigation, the AP talked to more than 40 current and former slaves in Benjina. The AP documented the journey of a single large shipment of slave-caught seafood from the Indonesian village, tracking it by satellite to a gritty Thai harbor. Upon its arrival, AP journalists followed trucks that loaded and drove the seafood over four nights to dozens of factories, cold storage plants and the country's biggest fish market.

The tainted seafood mixes in with other fish at a number of sites in Thailand, including processing plants. U.S. Customs records show that several of those Thai factories ship to America. They also sell to Europe and Asia, but the AP traced shipments to the U.S., where trade records are public.

By this time, it is nearly impossible to tell where a specific fish caught by a slave ends up. However, entire supply chains are muddied, and money is trickling down the line to companies that benefit from slave labor.

The major corporations contacted would not speak on the record but issued statements that strongly condemned labor abuses. All said they were taking steps to prevent forced labor, such as working with human rights groups to hold subcontractors accountable.

Several independent seafood distributors who did comment described the costly and exhaustive steps taken to ensure their supplies are clean. They said the discovery of slaves underscores how hard it is to monitor what goes on halfway around the world.

Santa Monica Seafood, a large independent importer that sells to restaurants, markets and direct from its store, has been a leader in improving international fisheries, and sends buyers around the world to inspect vendors.

"The supply chain is quite cloudy, especially when it comes from offshore," said Logan Kock, vice president for responsible sourcing, who acknowledged that the industry recognizes and is working to address the problem. "Is it possible a little of this stuff is leaking through? Yeah, it is possible. We are all aware of it."

The slaves interviewed by the AP had no idea where the fish they caught was headed. They knew only that it was so valuable, they were not allowed to eat it.

They said the captains on their fishing boats forced them to drink unclean water and work 20- to 22-hour shifts with no days off. Almost all said they were kicked, whipped with toxic stingray tails or otherwise beaten if they complained or tried to rest. They were paid little or nothing, as they hauled in heavy nets with squid, shrimp, snapper, grouper and other fish.

Some shouted for help over the deck of their trawler in the port to reporters, as bright fluorescent lights silhouetted their faces in the darkness.

"I want to go home. We all do," one man called out in Burmese, a cry repeated by others. The AP is not using the names of some men for their safety. "Our parents haven't heard from us for a long time. I'm sure they think we are dead."

Another glanced fearfully over his shoulder toward the captain's quarters, and then yelled: "It's torture. When we get beaten, we can't do anything back. ... I think our lives are in the hands of the Lord of Death."

In the worst cases, numerous men reported maimings or even deaths on their boats.

"If Americans and Europeans are eating this fish, they should remember us," said Hlaing Min, 30, a runaway slave from Benjina. "There must be a mountain of bones under the sea. ... The bones of the people could be an island, it's that many."

_______

For Burmese slaves, Benjina is the end of the world.

Roughly 3,500 people live in the town that straddles two small islands separated by a five-minute boat ride. Part of the Maluku chain, formerly known as the Spice Islands, the area is about 400 miles north of Australia, and hosts small kangaroos and rare birds of paradise with dazzling bright feathers.

Benjina is impossible to reach by boat for several months of the year, when monsoon rains churn the Arafura Sea. It is further cut off by a lack of Internet access. Before a cell tower was finally installed last month, villagers would climb nearby hills each evening in the hope of finding a signal strong enough to send a text. An old landing strip has not been used in years.

The small harbor is occupied by Pusaka Benjina Resources, whose five-story office compound stands out and includes the cage with the slaves. The company is the only fishing operation on Benjina officially registered in Indonesia, and is listed as the owner of more than 90 trawlers. However, the captains are Thai, and the Indonesian government is reviewing to see if the boats are really Thai-owned. Pusaka Benjina did not respond to phone calls and a letter, and did not speak to a reporter who waited for two hours in the company's Jakarta office.

On the dock in Benjina, former slaves unload boats for food and pocket money. Many are men who were abandoned by their captains — sometimes five, 10 or even 20 years ago — and remain stranded.

In the deeply forested island interiors, new runaways forage for food and collect rainwater, living in constant fear of being found by hired slave catchers.

And just off a beach covered in sharp coral, a graveyard swallowed by the jungle entombs dozens of fishermen. They are buried under fake Thai names given to them when they were tricked or sold onto their ships, forever covering up evidence of their captors' abuse, their friends say.

"I always thought if there was an entrance there had to be an exit," said Tun Lin Maung, a slave abandoned on Benjina, as other men nodded or looked at the ground. "Now I know that's not true."

The Arafura Sea provides some of the world's richest and most diverse fishing grounds, teeming with mackerel, tuna, squid and many other species.

Although it is Indonesian territory, it draws many illegal fishing fleets, including from Thailand. The trade that results affects the United States and other countries.

The U.S. counts Thailand as one of its top seafood suppliers, and buys about 20 percent of the country's $7 billion annual exports in the industry. Last year, the State Department blacklisted Thailand for failing to meet minimum standards in fighting human trafficking, placing the country in the ranks of North Korea, Syria and Iran. However, there were no additional sanctions.

Thailand's seafood industry is largely run off the backs of migrant laborers, said Kendra Krieder, a State Department analyst who focuses on supply chains. The treatment of some of these workers falls under the U.S. government's definition of slavery, which includes forcing people to keep working even if they once signed up for the jobs, or trafficking them into situations where they are exploited.

"In the most extreme cases, you're talking about someone kidnapped or tricked into working on a boat, physically beaten, chained," said Krieder. "These situations would be called modern slavery by any measure."

The Thai government says it is cleaning up the problem. On the bustling floor of North America's largest seafood show in Boston earlier this month, an official for the Department of Fisheries laid out a plan to address labor abuse, including new laws that mandate wages, sick leave and shifts of no more than 14 hours. However, Kamonpan Awaiwanont stopped short when presented details about the men in Benjina.

"This is still happening now?" he asked. He paused. "We are trying to solve it. This is ongoing."

The Thai government also promises a new national registry of illegal migrant workers, including more than 100,000 flooding the seafood industry. However, policing has now become even harder because decades of illegal fishing have depleted stocks close to home, pushing the boats farther and deeper into foreign waters.

The Indonesian government has called a temporary ban on most fishing, aiming to clear out foreign poachers who take billions of dollars of seafood from the country's waters. As a result, more than 50 boats are now docked in Benjina, leaving up to 1,000 more slaves stranded onshore and waiting to see what will happen next.

Indonesian officials are trying to enforce laws that ban cargo ships from picking up fish from boats at sea. This practice forces men to stay on the water for months or sometimes years at a time, essentially creating floating prisons.

Susi Pudjiastuti, the new Fisheries Minister, said she has heard of different fishing companies putting men in cells. She added that she believes the trawlers on Benjina may really have Thai owners, despite the Indonesian paperwork, reflecting a common practice of faking or duplicating licenses.

After the AP released its report Wednesday, she tweeted it and distributed copies of it in a meeting to a wide range of high-ranking government officials, including police, a high court judge, a prosecutor, the Navy and customs.

"I'm not going to tolerate such a thing to continue happening in our waters," she said in an interview. She added that campaigns to save wildlife get far more attention than abuse involving humans at sea.

Illegal fishing is "killing people and nobody knows or cares about this for so long," she said.

_________

The story of slavery in the Thai seafood industry started decades ago with the same push-and-pull that shapes economic immigration worldwide — the hope of escaping grinding poverty to find a better life somewhere else.

In recent years, as the export business has expanded, it has become more difficult to convince young Burmese or Cambodian migrants and impoverished Thais — all of whom were found on Benjina — to accept the dangerous jobs. Agents have become more desperate and ruthless, recruiting children and the disabled, lying about wages and even drugging and kidnapping migrants, according to a former broker who spoke on condition of anonymity to avoid retribution.

The broker said agents then sell the slaves, usually to Thai captains of fishing boats or the companies that own them. Each slave typically costs around $1,000, according to Patima Tungpuchayakul, manager of the Thai-based nonprofit Labor Rights Promotion Network Foundation. The men are later told they have to work off the "debt" with wages that don't come for months or years, or at all.

"The employers are probably more worried about the fish than the workers' lives," she said. "They get a lot of money from this type of business."

Illegal Thai boats are falsely registered to fish in Indonesia through graft, sometimes with the help of government authorities. Praporn Ekouru, a Thai former member of Parliament, admitted to the AP that he had bribed Indonesian officials to go into their waters, and complained that the Indonesian government's crackdown is hurting business.

"In the past, we sent Thai boats to fish in Indonesian waters by changing their flags," said Praporn, who is also chairman of the Songkhla Fisheries Association in southern Thailand. "We had to pay bribes of millions of baht per year, or about 200,000 baht ($6,100) per month. ... The officials are not receiving money anymore because this order came from the government."

Illegal workers are given false documents, because Thai boats cannot hire undocumented crew. One of the slaves in Benjina, Maung Soe, said he was given a fake seafarer book belonging to a Thai national, accepted in Indonesia as an informal travel permit. He rushed back to his boat to dig up a crinkled copy.

"That's not my name, not my signature," he said angrily, pointing at the worn piece of paper. "The only thing on here that is real is my photograph."

Soe said he had agreed to work on a fishing boat only if it stayed in Thai waters, because he had heard Indonesia was a place from which workers never came back.

"They tricked me," he said. "They lied to me. ... They created fake papers and put me on the boat, and now here I am in Indonesia."

The slaves said the level of abuse on the fishing boats depends on individual captains and assistants. Aung Naing Win, who left a wife and two children behind in Myanmar two years ago, said some fishermen were so depressed that they simply threw themselves into the water. Win, 40, said his most painful task was working without proper clothing in the ship's giant freezer, where temperatures drop to 39 degrees below zero.

"It was so cold, our hands were burning," he said. "No one really cared if anyone died."

________

The shipment the AP tracked from the port of Benjina carried fish from smaller trawlers; AP journalists talked to slaves on more than a dozen of them.

A crane hoisted the seafood onto a refrigerated cargo ship called the Silver Sea Line, with an immense hold as big as 50 semi-trucks. At this point, by United Nations and U.S. standards, every fish in that hold is considered associated with slavery.

The ship belongs to the Silver Sea Reefer Co., which is registered in Thailand and has at least nine refrigerated cargo boats. The company said it is not involved with the fishermen.

"We only carry the shipment and we are hired in general by clients," said owner Panya Luangsomboon. "We're separated from the fishing boats."

The AP followed the Silver Sea Line by satellite over 15 days to Samut Sakhon. When it arrived, workers on the dock packed the seafood over four nights onto more than 150 trucks, which then delivered their loads around the city.

One truck bore the name and bird logo of Kingfisher Holdings Ltd., which supplies frozen and canned seafood around the world. Another truck went to Mahachai Marine Foods Co., a cold storage business that also supplies to Kingfisher and other exporters, according to Kawin Ngernanek, whose family runs it.

"Yes, yes, yes, yes," said Kawin, who also serves as spokesman for the Thai Overseas Fisheries Association. "Kingfisher buys several types of products."

When asked about abusive labor practices, Kingfisher did not answer repeated requests for comment. Mahachai manager Narongdet Prasertsri responded, "I have no idea about it at all."

Every month, Kingfisher and its subsidiary KF Foods Ltd. sends about 100 metric tons of seafood from Thailand to America, according to U.S. Customs Bills of Lading. These shipments have gone to Santa Monica Seafood, Stavis Seafoods — located on Boston's historic Fish Pier — and other distributors.

Richard Stavis, whose grandfather started the dealership in 1929, shook his head when told about the slaves whose catch may end up at businesses he buys from. He said his company visits processors and fisheries, requires notarized certification of legal practices and uses third-party audits.

"The truth is, these are the kind of things that keep you up at night," he said. "That's the sort of thing I want to stop. ... There are companies like ours that care and are working as hard as they can."

Wholesalers like Stavis sell packages of fish, branded and unbranded, that can end up on supermarket shelves with a private label or house brand. Stavis' customers also include Sysco, the largest food distributor in the U.S.; there is no clear way to know which particular fish was sold to them.

Sysco declined an interview, but the company's code of conduct says it "will not knowingly work with any supplier that uses forced, bonded, indentured or slave labor."

Gavin Gibbons, a spokesman for National Fisheries Institute, which represents about 75 percent of the U.S. seafood industry, said the reports of abuse were "disturbing" and "disheartening." ''But these type of things flourish in the shadows," he said.

A similar pattern repeats itself with other shipments and other companies, as the supply chain splinters off in many directions in Samut Sakhon. It is in this Thai port that slave-caught seafood starts to lose its history.

The AP followed another truck to Niwat Co., which sells to Thai Union Manufacturing Co., according to part owner Prasert Luangsomboon. Weeks later, when confronted about forced labor in their supply chain, Niwat referred several requests for comment to Luangsomboon, who could not be reached for further comment.

Thai Union Manufacturing is a subsidiary of Thai Union Frozen Products PCL., the country's largest seafood corporation, with $3.5 billion in annual sales. This parent company, known simply as Thai Union, owns Chicken of the Sea and is buying Bumble Bee, although the AP did not observe any tuna fisheries. In September, it became the country's first business to be certified by Dow Jones for sustainable practices, after meeting environmental and social reviews.

Thai Union said it condemns human rights violations, but multiple stakeholders must be part of the solution. "We all have to admit that it is difficult to ensure the Thai seafood industry's supply chain is 100 percent clean," CEO Thiraphong Chansiri said in an emailed statement.

Thai Union ships thousands of cans of cat food to the U.S., including household brands like Fancy Feast, Meow Mix and Iams. These end up on shelves of major grocery chains, such as Kroger, Safeway and Albertsons, as well as pet stores; again, however, it's impossible to tell if a particular can of cat food might have slave-caught fish.

After the AP's story was released Wednesday, the company issued an additional statement saying it had immediately terminated business ties with a supplier after determining it might be involved with forced labor and other abuses. It did not say which supplier.

"Thai Union embraces AP's finding. It is utterly unacceptable," it said. "This is to prove that Thai Union takes the issue of human rights violation extremely seriously."

Wal-Mart described its work with several non-profits to end forced labor in Thailand, including Project Issara, and referred the AP to Lisa Rende Taylor, its director. She noted that slave-caught seafood can slip into supply chains undetected at several points, such as when it is traded between boats or mingles with clean fish at processing plants. She also confirmed that seafood sold at the Talay Thai market — to where the AP followed several trucks — can enter international supply chains.

"Transactions throughout Thai seafood supply chains are often not well-documented, making it difficult to estimate exactly how much seafood available on supermarket shelves around the world is tainted by human trafficking and forced labor," she said.

Poj Aramwattananont, president of an industry group that represents Thai Union, Kingfisher and others, said Thais are not "jungle people" and know that human trafficking is wrong. However, he acknowledged that Thai companies cannot always track down the origins of their fish.

"We don't know where the fish come from when we buy from Indonesia," said Poj of the Thai Frozen Foods Association. "We have no record. We don't know if that fish is good or bad."

______

The seafood the slaves on Benjina catch may travel around the world, but their own lives often end right here, in this island village.

A crude cemetery holds more than 60 graves strangled by tall grasses and jungle vines, where small wooden markers are neatly labelled, some with the falsified names of slaves and boats. Only their friends remember where they were laid to rest.

In the past, former slave Hla Phyo said, supervisors on ships simply tossed bodies into the sea to be devoured by sharks. But after authorities and companies started demanding that every man be accounted for on the roster upon return, captains began stowing corpses alongside the fish in ship freezers until they arrived back in Benjina, the slaves said.

Lifting his knees as he stepped over the thick brush, Phyo searched for two grave markers overrun by weeds — friends he helped bury.

It's been five years since he himself escaped the sea and struggled to survive on the island. Every night, his mind drifts back to his mother in Myanmar. He knows she must be getting old now, and he desperately wants to return to her. Standing among so many anonymous tombs stacked on top of each other, hopelessness overwhelms him.

"I'm starting to feel like I will be in Indonesia forever," he said, wiping a tear away. "I remember thinking when I was digging, the only thing that awaits us here is death."

___

Esther Htusan contributed to this report from Benjina, Indonesia. Mason reported from Samut Sakhon, Thailand; Mendoza reported from Boston, Massachusetts.

___

Online:

AP Video: https://www.youtube.com/watch?v=vgYgAVQG5lk

___

Follow Margie Mason and Martha Mendoza on Twitter: https://twitter.com/MargieMasonAP , https://twitter.com/mendozamartha


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World stocks drift as Fed, China weakness weigh

HONG KONG — World stock markets drifted Wednesday as investor sentiment was kept in check by the prospect of higher U.S. interest rates as well as the lingering fears about China's weakening growth.

KEEPING SCORE: European shares were mixed in midday trading. France's CAC 40 slipped 0.7 percent to 5,052.08 and Germany's DAX edged down the same rate to 11,925.25. Britain's FTSE 100 crept up 0.1 percent to 7,023.30. U.S. stocks looked set for a lackluster start, with S&P 500 futures unchanged and Dow futures down 0.1 percent.

INVESTOR INDECISION: Markets were mostly in a holding pattern as investors turned cautious following recent economic data on the world's biggest economies. U.S. data showed that durable goods orders fell in February, though consumer prices rose for the first time in four months while new home sales climbed to their fastest pace in seven years. Overall, that maintains concerns the Fed could soon lift interest rates. In China, HSBC's preliminary purchasing managers' index showed manufacturing activity there slumped to the lowest in 11-months. In Europe, a key survey showed German business confidence rose for a fifth month.

MARKET VIEW: "It remains to be seen whether we are going through a period of equilibrium, where bulls and bears even each other out, or simply a period where traders are happy to ride out the end of a good quarter by staying on the sidelines," Nicholas Teo of CMC Markets in Singapore wrote in a commentary.

ASIA'S DAY: Japan's benchmark Nikkei 225 index reversed earlier losses to close 0.2 percent at 19,746.20 and South Korea's Kospi rose less than 0.1 percent to 2,042.81. Hong Kong's Hang Seng climbed 0.5 percent to 24,528.23 while the Shanghai Composite Index in mainland China lost 0.8 percent to 3,660.73. Australia's S&P/ASX 200 finished up less than 0.1 percent at 5,973.30, just off its highest level in more than seven years. Southeast Asian indexes were mixed.

ENERGY: Benchmark U.S. crude futures rose 18 cents to $47.69 in electronic trading on the New York Mercantile Exchange. The contract rose 6 cents to close at $47.51 a barrel.

CURRENCIES: The dollar slipped to 119.30 yen from 119.75 in the previous session. The euro strengthened to $1.1009 from $1.0914.


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HJ Heinz buying Kraft and building a $28 billion food giant

NEW YORK — H.J. Heinz Co. is buying Kraft Foods, creating one of the largest food and beverage companies in the world with annual revenue of about $28 billion.

The Kraft Heinz Co. will own Kraft, Heinz, Oscar Mayer, Ore-Ida and large stable of other brands. Eight of those brands have annual sales of $1 billion or more and five others log sales between $500 million and $1 billon every year.

The deal to bring together the two companies, each more than a century old, was engineered by Warren Buffett's Berkshire Hathaway and Brazilian investment firm 3G Capital. The two will invest another $10 billion in the new company.

The merger comes as well-established food producers struggle to keep up with shifting appetites. Consumers are seeking more unprocessed foods, and have migrated away from one-time staples of the American diet.

Buffett, however, said both companies have a strong base. He has been investing steadily on both of them for quite a while.

"I think the tastes Kraft and Heinz appeal to are pretty enduring," Buffett said in a telephone call to the business news channel CNBC.

The massive deal materialized rapidly, Buffett said, having been in the works for only about four weeks or so.

There are plans for at least four new products this year, Buffett said, and that there is a lot of freedom to sell the company's products outside of the U.S. and Canada.

Since splitting from Mondelez International Inc. in 2012, Kraft's business has been primarily concentrated in the U.S. and Canada. All of its manufacturing capacity is in those two countries, according to the company's annual report.

Kraft Heinz will maintain headquarters in Pittsburgh, where Heinz is based, and also in the Chicago area, where Kraft resides.

Shares of Kraft jumped nearly 34 percent Wednesday before the opening bell.

Kraft shareholders will receive stock in the combined company and a special cash dividend of approximately $10 billion, or $16.50 per share. Each share of Kraft will be converted into one share of Kraft Heinz.

Current Heinz shareholders will own 51 percent of the combined company, with Kraft shareholders owning a 49 percent stake.

Annual cost savings estimated to be $1.5 billion are expected to be booked by the end of 2017.

Buffett and 3G Capital snapped up Heinz in a deal valued at $23.3 billion two years ago.

Heinz CEO Bernardo Hees will become CEO, Alex Behring, Heinz chairman and managing partner at 3G Capital, will be chairman. Kraft CEO and Chairman John Cahill will become vice chairman.

The Kraft Heinz board will include six directors from the current Heinz board. Those six directors will include three members from Berkshire Hathaway and three members from 3G Capital. The current Kraft board will appoint five directors to the combined company's board.

The deal still needs a nod from federal regulators as well as shareholders of Kraft Foods Group Inc., but the boards of both companies unanimously approved it. The planned closing is set for the second half of the year.

Kraft Heinz plans to keep Kraft's current dividend per share once the transaction closes. Kraft has no plans to change its dividend before the deal is complete.


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US durable goods orders fell 1.4 percent in February

WASHINGTON — Orders to U.S. factories for long-lasting manufactured goods fell in February for the third time in the past four months, while a key investment category fell for a sixth month.

Orders for durable goods dropped 1.4 percent in February following a 2 percent increase in January and declines of 3.7 percent in December and 2.2 percent in November, the Commerce Department reported Wednesday. A key category that serves as a proxy for business investment spending retreated 1.4 percent in February, the sixth consecutive monthly decline.

The weakness in February was widespread, with weaker demand for commercial aircraft, autos and machinery. The result adds to a slew of disappointing data from recent economic indicators. Economists, however, expect domestic demand to strengthen in the months ahead and hope that will be enough to offset weakness caused by a stronger dollar, which dampens export sales of U.S. companies.

Transportation orders were down 3.5 percent. Excluding transportation, durable goods orders dropped 0.4 percent. Demand for machinery and computers fell, while orders for communications equipment and appliances rose.

Paul Ashworth, chief U.S. economist at Capital Economics, blamed some of the weakness to the big plunge in energy prices, which has led to cutbacks in drilling plans by oil and gas companies. But he noted one sign of encouragement — business surveys of investment spending plans have improved significantly in recent months.

"We would expect to see a rebound in equipment investment in the second quarter," Ashworth said.

Many economists are looking for manufacturing orders to start strengthening following a stretch of weakness in the second half of last year. They believe the end of harsh winter weather and the resolution of a labor dispute at West Coast ports, which caused supply disruptions, should help.

They expect strong consumer spending, powered by a year of healthy job gains, will boost domestic demand and help to offset global weakness and the strong dollar.

Growth in the overall economy slowed significantly in the October-December quarter, with a widening trade deficit trimming growth by more than a percentage point.

The government will release its third and final estimate of economic growth in the fourth quarter on Friday. Analysts expect growth will be revised slightly to a rate of 2.4 percent, up from the previous estimate of 2.2 percent. But that would still leave the economy expanding far below the 5 percent rate in the third quarter. And economists believe growth has remained sluggish in the current January-March period at around 2 percent.


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New York Times close to content deal with Facebook

Written By Unknown on Selasa, 24 Maret 2015 | 20.25

Facebook is in talks with at least half a dozen media companies including The New York Times, BuzzFeed and National Geographic to host content directly within the social media platform, instead of on their own individual websites.

The Times and Facebook are moving closer to a firm deal, a source told the Times, and Facebook intends to begin testing the new format over the next several months.

To make the proposal more appealing to publishers, the social media giant has discussed ways for publishers to make money from advertising that would run alongside the content, according to a report in the Times on Monday.

Currently news articles on Facebook are linked to the publisher's own website, and open in a web browser, typically taking about eight seconds to load. However, stories embedded within Facebook could offer faster load times and make the experience of consuming content online more seamless.

In addition to hosting content directly on Facebook, the company is also talking with publishers about other technical ways to hasten delivery of their articles, reported the Times.

The new plan is championed by Chris Cox, the top lieutenant to Facebook's chief, Mark Zuckerberg, on product matters, and it would remove the ads that publishers put around their content. One option would allow publishers to show a single ad in a custom format within each Facebook article.

2015 TheWrap news inc. All rights reserved.


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Britain's inflation rate falls to zero

LONDON — Official data says Britain's inflation rate fell to zero last month, setting the stage for a period of falling prices first time in half a century.

The Office of National Statistics said Tuesday the inflation rate was unchanged in the year to February, compared to a 0.3 percent rise in January, amid drops in the cost of food.

The agency says an experimental model created by the ONS suggests the last time inflation was negative was in March 1960.

The drop came just days after Bank of England economist Andy Haldane suggested interest rates — now at a record low of 0.5 percent — were as likely to fall as to rise.

Deflation concerns economists because consumers may start to put off purchases in hopes that prices will drop.


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Looking for a job near home? Good luck, it's getting harder

WASHINGTON — Remember the Detroit man who walked 21 miles to work?

James Robertson's arduous daily journey back and forth to a low-wage factory job, widely reported last month, is just an extreme version of an increasingly common problem: Finding a job near home is getting harder for millions of American workers. And long commutes are especially tough on the poor and on blacks and Hispanics.

A Brookings Institution report out Tuesday finds the number of jobs within typical commuting range dropped 7 percent between 2000 and 2012 in major U.S. metropolitan areas.

Metro jobs near poor people, many of whom cannot afford cars, fell 17 percent, versus a 6 percent drop for those who weren't poor. Jobs near Hispanics fell 17 percent, and those near blacks dropped 14 percent.

Elizabeth Kneebone and Natalie Holmes of Brookings' Metropolitan Policy Program used U.S. Census Bureau data for 96 big metro areas to find how many jobs were available within each area's median commuting distance — a figure that ranged from 12.8 miles in Atlanta to 4.7 miles in Stockton, California.

For years, analysts and policymakers have worried that jobs were moving to the suburbs and away from the inner-city poor. Kneebone and Holmes found something new: Jobs and people of all incomes and races are moving from densely populated urban neighborhoods to the sprawling suburbs. As they do, the distance between people and jobs expands.

Increasing sprawl means that nearby jobs can fall even when overall jobs increase. Jobs in Phoenix and its suburbs, for example, grew almost 11 percent from 2000 to 2012. But jobs within the typical commuting range fell nearly 17 percent over the same period.

"People in the suburbs need to get to jobs in other suburbs," Kneebone said.

Just 29 of the 96 metro areas enjoyed a hike in jobs within commuting range from 2000 to 2012. Nearby jobs rose nearly 58 percent in McAllen, Texas, and nearly 23 percent in Bakersfield, California. Cleveland (down nearly 27 percent) and Detroit (down almost 26 percent) had the biggest drops in jobs within typical commuting distance. Those metro areas also lost jobs overall.

Kneebone and Holmes recommend that communities within metro areas work together to make sure low-income workers can find and pay for public transportation to take them to distant jobs. They note, for example, that King County, Washington, which includes Seattle and its suburbs, is offering discounted public transit fares to low-income residents.

For now, many of the poor struggle to get to work. Harold Carnes, 57, of Las Vegas says he can't afford to take the bus to his $8.75-an-hour job at McDonald's. So he rides a bicycle 2 ½ miles each way, sometimes in temperatures that top 100 degrees. It used to be worse. He was walking to work until the pastor at his church learned of his daily trek and gave him an old bicycle.

Detroit's Robertson, 56, got luckier. As the news of his 21-mile daily walk went global, donations poured in from sympathetic people, including a local auto dealer who gave him a new Ford Taurus.


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Higher gas costs lift US consumer prices 0.2 percent

WASHINGTON — A modest rebound in gas costs and broad gains in other categories lifted consumer prices for the first time in four months, a sign inflation may be stabilizing.

The consumer price index rose 0.2 percent in February, the Labor Department said Tuesday, after dropping 0.7 percent the previous month. January's decline was the biggest in six years.

Gas prices have plummeted since June, dramatically lowering inflation. They fell for seven straight months before rising 2.4 percent in February, the government said. Prices at the pump are still nearly 33 percent lower than a year ago.

Largely as a result, consumer prices were unchanged in the 12 months ending in February after slipping 0.1 percent in January from a year earlier. Yet excluding gas, prices have been more stable.

Outside food and energy, core prices also rose 0.2 percent last month. The cost of rents, clothes, new and used cars, and airfares all increased. Core prices have risen 1.7 percent in the past year.

The consumer price index is far below the 2 percent target set by the Federal Reserve, complicating the Fed's decision on when to raise the short-term interest rate it controls.

Job growth has been robust and the economy is expanding at a steady, if moderate, pace. Typically, that would lead the Fed to raise the rate from near zero, where it has been pinned since December 2008.

But price increases below the 2 percent target argue for postponing a rate increase. The Fed has chosen that target as a cushion against deflation.

After a two-day meeting last week, Fed policymakers said in a statement that it may be appropriate to raise rates after "further improvement in the labor market" and when they are "reasonably confident that inflation will move back to its 2 percent objective over the medium term."

That statement caused many analysts to push back their estimate of when the Fed will move until September or later. Some economists still expect the first rate increase will happen in June.

Gas prices plummeted 60 percent from June through January, falling to a five-year low of $2.03 a gallon on average nationwide, according to AAA. But it rebounded to $2.33 by late February.

Some other trends are also keeping prices from falling. Rental apartment vacancies fell to their lowest level in 25 years at the end of last year, according to Joseph Carson, U.S. economist for asset manager AllianceBernstein. That pushed up average rents 3.4 percent in 2014, the biggest gain in six years. That upward move is lifting core inflation.


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Mercedes recalls 30,000 cars to fix rear tail lamp problem

DETROIT — Mercedes-Benz is recalling just over 30,000 CLS-Class cars in the U.S. because the LED tail lamps may not light properly on the sides.

The recall covers certain 2015 CLS 400s, 2012 through 2015 CLS 550s, 2012 and 2013 CLS 63s and the 2014 and 2015 CLS 63P.

Mercedes says in documents filed with U.S. safety regulators that the malfunctioning lights could prevent other drivers from seeing the cars, increasing the risk of a crash.

The problem was discovered in December during a quality check at the factory. Dealers will update the lighting control software at no cost to the owners. Mercedes doesn't have a schedule yet for when the repairs will take place.


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Stocks mostly turn lower after gains in Asia

Written By Unknown on Senin, 23 Maret 2015 | 20.25

LONDON — European stocks fell and Wall Street was set for a modest open on Monday despite gains in Asian markets overnight.

KEEPING SCORE: In early trading, Germany's DAX lost 1.1 percent to 11,901.03 points and France's CAC 40 shed 0.8 percent to 5,048.05. Britain's FTSE 100 was down 0.1 percent at 7,014.63. On Wall Street, the futures for the Standard & Poor's 500 and Dow were both flat after both indexes rose On Friday.

GREECE FOCUS: In Europe, traders were looking to a meeting on Monday between the leaders of Greece and key creditor Germany for signs of progress in Greece's debt negotiations. The country is in talks with its European rescue lenders on what reforms it must make to be eligible to receive more loans. Although Greece faces a cash crunch in coming weeks, the talks have been slow and investors are hoping that the meeting between Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel can get them moving.

ASIA'S DAY: The Shanghai Composite Index rose 2 percent to 3,687.73 points and Tokyo's Nikkei 225 gained 1 percent to 19,754.36. Hong Kong's Hang Seng added 0.5 percent to 25,494.51. Benchmarks in Taipei, New Zealand and Singapore rose. Seoul's Kospi was unchanged at 2,036.59. India's Sensex shed 0.2 percent to 28,209.71, and Sydney and Bangkok also declined.

U.S. OPTIMISM: Investors will be looking at whether U.S. stocks can extend a strong run from last week, when they were boosted by a rebound in oil prices and earnings from Olive Garden owner Darden Restaurants and sportswear giant Nike. That came after the Federal Reserve implied at the end of its two-day meeting Wednesday that it was in no hurry to hike rates with U.S. economic growth and inflation low.

THE QUOTE: "On current statements, no central bank in the developed world is going to raise rates before June. In fact, the market believes no central bank will lift rates before September," Evan Lucas of IG Markets said in a report.

ENERGY: Benchmark U.S. crude shed 41 cents to $46.16 per barrel in electronic trading on the New York Mercantile Exchange. The contract soared $1.04 on Friday to close at $46.57.

CURRENCY: The dollar fell to 119.80 yen from Friday's 120.03 yen. The euro rose to $1.0898 from $1.0820.


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Researcher is making a splash

Northeastern University could help develop the first underwater smartphone or wireless router after luring a highly cited researcher who is pioneering subaquatic Wi-Fi.

Tommaso Melodia, 38, came to Northeastern in August from SUNY Buffalo and brought with him his research and his lab — which sent the first underwater tweet a few years ago.

Less than a year into his stint at Northeastern, Melodia has already won a $300,000 grant from the National Science Foundation to expand his research, this time focusing on the possibility of real-time underwater video streaming.

In layman's terms, his technology allows for bits of data to be transmitted over acoustic waves. In historical terms, this is the newest frontier in the transmission of information — like what we were trying to do with wires 50 years ago. It was a matter of carefully modifying frequencies and amplitudes to get the most efficient transmissions. Melodia is working on ways to adapt data to transmit through sound waves in water — similar process, different medium.

The consequences are far-reaching, from unlocking mysteries of the ocean to enabling scuba divers and submarines to communicate via Wi-Fi.

"This technology enables you to have a signal on a boat saying this is the location on the scuba diver, to enable voice communications amongst divers and monitor underwater activities of small submarines smuggling illegal substances," said Melodia, associate professor in the department of electrical and computer engineering, and head of the Wireless Networks and Embedded Systems Lab (WiNES Lab).

"There are lots of environmental implications — you can monitor level of pollution and send warnings to the authorities, or even tweet directly to authorities."

Melodia's research progressed last year to allow the first files to be wirelessly uploaded to the Internet under water. He envisions these developments making search and rescue missions easier, especially when it comes to locating missing planes, and enabling an entirely new industry of underwater, Wi-Fi-enabled robotics.

"Having a better understanding of underwater acoustic propagation helps us make better devices to produce the pings of a black box," he said.

Sending data across water has another interesting application: the human body. The next phase of Melodia's work at Northeastern will likely encompass intra-body networks: the kind of Wi-Fi communication that would allow tiny implanted medical devices to detect and treat ailments in real time. The human body is made of 60 percent water, so it's not a leap to think that underwater Wi-Fi may soon change not just how we communicate, but how long we live as well.


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Buckle up for the innovative Swash

Swash ($499, BestBuy.com & Swash.com)

Not quite a washing machine, and not quite a dry cleaner, Swash is a new product category: a device that claims to extend the life of your clothes by cutting down on the number of wash-and-dry cycles and more or less replacing your iron altogether.

The good: This clever 53-inch clothes refresher from Whirlpool smooths and steam cleans your clothes in a 10- or 15-minute cycle. Retractable tension clips secure the shape of your clothes just so. I was even able to reshape some previously shrunken wool sweaters with the Swash.

The bad: Keep in mind that this thing weighs 80 pounds and is rather tall. Detergent "pods" are sold separately, with the going price about $7 for a 12-pack. And for heavily soiled clothes, you'll still need a conventional washer.

The bottom line: You never knew you needed a Swash. But if you're keeping your local dry cleaner busy, this will save you time and possibly cash.


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Plainville slots parlor scheduled to open June 24

PLAINVILLE, Mass. — The first gambling facility authorized under the state's 4-year old casino legislation is scheduled to open June 24.

Officials at the Plainridge Park Casino say their facility that features 1,250 slot machines will open on that date.

The harness racing track has been undergoing a $125 million in renovations to become the first legal casino-style gambling facility in Massachusetts. The facility will not offer table games. State law allows for up to three full service casinos. Two have been approved, in Springfield and Everett.

Officials from Penn National Gaming, the owners of Plainridge, say the facility will also offer dining and entertainment at nine restaurants, retail space and a parking garage. Harness racing will continue.

Penn National officials say they will hire 500 employees.


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Biogen Idec shortens its name to Biogen

NEW YORK — Biogen Idec Inc. is shortening its name to just Biogen as of Monday.

The biotechnology company is also introducing a new corporate logo. But it will maintain "BIIB" as its ticker symbol.

It said the moves reflects both its evolution and focus on bringing forth new therapies in areas of high unmet need while honoring its legacy as a pioneer in the biotechnology industry.

The company was created 12 years ago through the merger of Biogen with IDEC Pharmaceuticals and has since focused on three core areas, including neurology, immunology and hematology.

The rebranding is in conjunction with the company's move to expand its focus on underserved conditions, including neurodegenerative diseases.

Biogen, based in Cambridge, Massachusetts, makes blockbuster multiple sclerosis treatments Avonex and Tecfidera, with $3.1 billion and $2.9 billion in revenue in 2014, respectively. It also makes the multiple sclerosis drug Tysabri, which had revenue of $2 billion in 2014. Other key treatments include a partnership with Genentech on the non-Hodgkin's lymphoma treatment Rituxan.

Its pipeline of potential treatments includes daclizumab and natalizumab, aimed at types of multiple sclerosis and obinutuzumab, aimed at treating lymphomas. The company has already said it plans to develop six biosimilar drugs, which are cheaper versions of older biotech drugs with expired patents.

Last week, the company lit up the market with early, but positive study data from a potential Alzheimer's disease drug.

Its shares retreated $7.78, or 1.6 percent, to $468.20 in premarket trading Monday about an hour ahead of the market open.


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Fed rate hike to have big impact

Written By Unknown on Minggu, 22 Maret 2015 | 20.25

When the Federal Reserve finally raises interest rates, the ripple effect will hit everything from business investment to consumer borrowing, but that doesn't make it the wrong move, experts say.

"Short-term interest rates are going to go up, and that's going to affect a lot of things in the credit markets," said Paul Edelstein, director of financial economics for IHS Global Insight. "The Fed is going to make it more expensive to borrow."

Fed Chair Janet Yellen, has taken pains to be cautious, but the central bank last week gave signals that it will move slowly this year toward its first interest-rate increase since December 2008, when the economy was mired in the Great Recession and financial crisis.

One of the first and most notable ripple effects when the Fed raises rates will likely be on stock prices.

"When interest rates do go up, it is normal for that to have an effect on stock and bond markets," said Jeff Frankel, a professor at Harvard University and director of the Program in International Finance and Macroeconomics at the National Bureau of Economic Research.

The initial market reaction would likely be just a blip, but higher interest rates could lead to more volatile stock prices.

"Keeping interest rates so low for six years is part of what has sustained the rallies," he said.

Higher interest rates will spread to other loans, including mortgages, and eventually to credit cards as banks pass on higher borrowing costs to customers.

"If you want to borrow to buy a home, it's going to get more expensive," Edelstein said.

At the same time, it will become more lucrative to save, Edelstein said, as rising interest rates usually increase the yields on savings accounts.

For businesses, more expensive loans could take a bite out of investment plans.

"The more they have to spend to borrow money, the less they have to spend on other things," said David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, "and the less they'll have to spend on big capital expenses like factories."

The effects of raising interest rates may seem largely negative, but it is important to return to normal levels, analysts say.

"It's really, really unusual for interest rates to be at zero for more than six years," Wessel said. "Interest rates were cut to zero when things were really screwed up."

The Fed has said it will only raise rates when the labor market improves and it is absolutely sure the economy can weather the storm.

"No one likes to spoil a party," Frankel said, "but you do it because you think it's necessary to keep the economy on the long term."


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Some slow to embrace FASTR

A new Congressional bill that would improve public access to the roughly $60 billion in research the federal government funds each year is drawing praise from researchers who say it will accelerate innovation, and criticism from some publishers who fear it will undermine their financial model.

The Fair Access to Science and Technology Research Act would require each federally funded researcher to submit an electronic copy of the final text of their peer-
reviewed work and ensure that manuscript is available free online within six months.

"We are supportive of any initiative that increases transparency and collaboration, and creates widespread access to the amazing work of our biomedical researchers," said Dr. Paul J. Anderson, chief academic officer and senior vice president of research at Brigham and Women's Hospital. "The FASTR Act has the potential to speed the pace of innovation, a goal that we are all focused on, as we work to translate our research breakthroughs to clinical therapies for the ultimate benefit of our patients."

Harry Orf, senior vice president for research at Massachusetts General Hospital, said MGH also supports full disclosure of peer-reviewed research.

Currently, federally funded study results are reported to the National Institutes of Health and submitted within a year of publication to PubMed Central, a freely accessible government database.
Orf's one concern is that any additional requirements the FASTR Act entails be handled through that system to prevent "increased bureaucratic burden" on researchers.

"Researchers with a final manuscript like as many people as possible to see it," said Dr. Roger K. Pitman, a psychiatrist at MGH and professor of psychiatry at Harvard Medical School. "The issue here is more one of interaction between the federal government and journals."

Opponents to the FASTR Act include the Association of American Publishers, whose president and CEO said the bill "undermines our scientific publishing system, prioritizing simplicity over sustainability."
"The bills' short, inflexible 6- and 12-month embargoes will damage the financial viability of many scholarly journals and weaken the quality and integrity of the system, including the vital peer review process," said Tom Allen. "A goal of free public access to the world must not be allowed to eliminate the financial incentives for scholarly publishers to invest in bringing cutting-edge research to public attention."

But Heather Joseph, executive director of the Scholarly Publishing and Academic Resources Coalition, said, "Being able to provide access to this layer of information is at the core of our mission."


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Techies snatching up more real estate in Southern California

LOS ANGELES — Internet moguls like Amazon's Jeff Bezos aren't the only techies snatching up real estate in Southern California.

While the mega rich from Silicon Valley have made headlines for their purchases of extravagant Los Angeles homes, the city has become increasingly appealing to a trove of angel investors and startup entrepreneurs as well.

The new buyers are drawn to the city for a mix of personal, financial and work-related reasons, the Los Angeles Times reports (http://lat.ms/1BYdMWD ). Los Angeles offers a growing tech scene, warmer weather and more space for less money.

"We've seen an uptick in buyers from the technology industry over the last several years — some moving to Los Angeles and some buying second homes here, as a kind of peaceful retreat," Charles Black, executive vice president of marketing and strategic development at Hilton & Hyland, told the Times.

The Los Angeles-Long Beach region broke into the top five metro areas by venture capital investment for the first time in 2014. There were 171 deals totaling $2.05 billion, according to National Venture Capital Association.

Some of the most high profile purchases in recent years include Bezos' $24.5 million Beverly Hills compound. Sean Parker, co-founder of Napster and an early leader at Facebook, purchased Ellen DeGeneres' Holmby Hills mansion for $55 million. Swedish tech billionaire Markus Persson, the creator of "Minecraft," topped them both when he spent $70 million for a Beverly Hills mansion fitted with a $200,000 candy room.

But the purchases of the uber rich only tell half the tale.

Entrepreneur and investor Justin Yoshimura, 25, is one example: While he primarily lives in San Francisco, he recently purchased a $2.04 million three-bedroom, three-bath home in Santa Monica that he now spends weekends in.

"Compared to San Francisco in particular, it's very cheap," he told the newspaper. "I have a yard with a pool and a beautiful home for less than what I would pay for an equivalent-sized condo in San Francisco."

Real estate agent Tami Pardee says tech buyers from Silicon Valley make up about 10 percent of her current clients. Their budget, even at a smaller scale, is high: anywhere from $2 million to $5 million for a home.

"They're buying second homes — or third or fourth homes," she said. "We're seeing it a lot."


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Icy return of boats not all its quacked up to be

The launch of the duck boats is a rite of spring, but this year even the amphibious vehicles have fallen victim to the unseasonably cold and snowy winter.

Boston Duck Tours will begin its 21st season today, but with some special measures to avoid frozen feathers. The duck boats will either not go in the water at all or make an abbreviated swim thanks to ice still clogging the Charles River.

"Any time you go in the water with ice, it's not a good idea. The Titanic is a good example," said Bob Schwartz, a spokesman for Boston Duck Tours. "It would just not be the safe thing."

The land-water tour company actually pushed back its opening date this year to try to avoid an iced-over Charles, but it wasn't enough of a delay, Schwartz said.

The average temperature in February was more than 12 degrees colder than normal, according to the National Weather Service, and March temperatures have been below normal too.

Duck Tours will be 50 percent off until the amphibious vehicles can make the full water run, which usually lasts around 20 minutes, Schwartz said. For now, if the duck boats take a dip at all, it will last around 10 minutes. If the water is not frozen where the duck boats splash in, the vehicles will make the trip around the mouth of the Charles, but not up the river.

Schwartz said not going in the water will be tough for riders.

"It's such a big draw, that's who we are," he said. "It's the thing that people really want to experience when they come."


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On 5th anniversary of health care law, no end to debate

WASHINGTON — When President Barack Obama signed the Affordable Care Act five years ago, he visualized a time when the political hyperbole would be silenced and ordinary people would see that the health care law improved their lives.

The White House ceremony on March 23, 2010, was an applause-filled celebration. "When I sign this bill," Obama said, "all of the overheated rhetoric over reform will finally confront the reality of reform."

But the polemic around "Obamacare" hasn't cooled much, and the permanence of the president's achievement remains in question as the nation awaits the outcome of a Supreme Court case that could jeopardize insurance for nearly 8 million people.

Here's a look at the health care law, then and now:

___

Then: 49.9 million people were uninsured in 2010, according to the Census Bureau.

Now: That's down significantly, to somewhere between 30 million and 40 million people.

The administration recently estimated that 16.4 million adults have gained insurance since the law's coverage provisions took effect.

Measuring differently, data from a large daily survey called the Gallup-Healthways Well-Being Index suggests a more modest impact: The uninsured rate dropped from 16.3 percent in early 2010 to 12.3 percent this year among adults 18-64, which translates to about 9.7 million fewer uninsured.

But the law's precise impact may not be clear for a few years, partly because census surveys take time.

___

Then: Insurers could deny coverage to people with health conditions or charge them higher premiums.

Now: Insurers can't ask about someone's medical history. But they can charge smokers more.

___

Then: Health insurance was available to most people, but the government didn't require them to have it.

Now: The law requires nearly all Americans to have coverage, either through an employer, a government program or by buying their own policies. The uninsured risk IRS fines.

___

Then: In April 2010, 46 percent had a favorable view of the law, while 40 percent had an unfavorable opinion, according to the Kaiser Family Foundation tracking poll.

Now: Naysayers have an edge. Forty-three percent have an unfavorable opinion, while 41 percent have a favorable view, according to Kaiser's latest poll.

About 3 in 5 said the law has had no impact on their family. The rest are divided almost equally between the 19 percent who said they were helped and the 22 percent who said they have been hurt.

___

Then: Democrats ran both chambers of Congress. Nancy Pelosi was speaker of the House and Harry Reid was Senate majority leader.

Now: Republicans are back in charge after Democratic losses in the 2010 and 2014 midterm elections. Opposition to "Obamacare" was a motivator for conservative voters. Pelosi and Reid are minority leaders in their respective chambers.

___

Then: Losing health insurance was a rite of passage for young adults; insurers routinely dropped them from parental coverage.

Now: Young adults can remain on a parent's plan until they turn 26, whether or not they are students.

___

Then: People who bought their own health insurance had to pay the full cost — making it unaffordable for many.

Now: Insurance exchanges like HealthCare.gov offer subsidized coverage.

___

Then: The final legislation cut a provision that would have authorized Medicare to pay doctors for counseling patients about what kind of care they would want in the last stages of a serious illness.

Former GOP vice presidential candidate Sarah Palin asserted that would lead to "death panels." Palin's accusation was widely debunked, but not before it created a furor.

Now: Medicare is considering a regulation to allow payment for end-of-life counseling and has asked for public comment. Such counseling would be voluntary, and the idea has wide support in the medical community.

___

Then: At a rally near Cleveland days before the bill passed in 2010, Obama claimed employers would see premiums plummet, "which means they could give you a raise."

That year, annual premiums for employer-sponsored insurance averaged $5,049 for employee-only coverage and $13,770 for a family plan, according to the Kaiser Family Foundation's employer survey.

Now: Premiums for job-based insurance have gone up.

They averaged $6,025 for employee-only coverage in 2014, the most recent year available from Kaiser. Family coverage averaged $16,834. The employee share also went up.

Supporters of the law say premiums have risen more slowly than would have otherwise been the case.

But employers have kept shifting costs to workers. The average annual deductible for single coverage was $1,217 in 2014, up from $917 in 2010.

___

Then: The 2010 Medicare trustees report estimated that spending cuts and tax increases in the health care law would extend the life of the program's giant hospital trust fund to 2029. Before, it was expected to run out in 2017.

Now: The 2014 Medicare trustees report estimated that the trust fund will be exhausted in 2030. Slowing medical inflation has helped Medicare, even as baby boomers reaching age 65 are flocking to enroll.

The health care law's cuts haven't had the dire consequences that many seniors feared. Congress has passed even more spending reductions since 2010.

Medicare's long-term future remains uncertain.

___

Then: Even before Obama signed the law, conservatives were preparing a constitutional challenge to its requirement that individuals carry health insurance. A divided Supreme Court upheld the mandate in 2012, ruling that the penalty for not complying works like a tax. However, the court gave states the option to reject the law's Medicaid expansion.

Now: A decision in the latest case brought by opponents is expected in late June.


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