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Cuts may stunt state’s growth

Written By Unknown on Sabtu, 27 April 2013 | 22.26

Higher worker bonuses and a strong technology sector helped the Massachusetts economy grow faster than the nation for the first three months of the year, but experts warned that federal budget cuts and the payroll tax increase are already taking a toll on the commonwealth.

"What the policy is doing is slowing the pace of our growth," said Michael Goodman, a public policy professor at the University of Massachusetts Dartmouth. "It's like driving around with the emergency brake on. You're still moving forward, but not as fast as you would like."

Massachusetts' real gross state product grew at a rate of 3.9 percent in the first quarter, outpacing the nation's 
2.5 percent growth rate.

In a MassBenchmarks report issued yesterday, experts said the state's solid economic growth from January to March was likely caused by "sizable" bonus payments made to workers in the financial and professional services sectors.

However, the state's professional, scientific and business services sector took a big hit last month with the loss of 3,400 jobs even as the unemployment rate dropped down to 6.4 percent. March marked the beginning of federal automatic spending cuts.

The state grew at an annual rate of 2.4 percent during the fourth quarter of last year while the United States posted a paltry 0.4 percent growth rate.

Federal budget cuts are already starting to slow the commonwealth's leading industries, including health care, higher education and research and development, experts said.

"The national and state economies are being strongly influenced by two opposing forces. On the one hand, growth in consumer demand is being supported by rising home prices, stock markets and job expansion," said Northeastern University economist Alan Clayton-Matthews, senior contributing editor of MassBenchmarks. "On the other hand, fiscal drag in the form of the payroll tax increase and federal budget cuts are slowing the economy. This fiscal drag could dampen growth by as much as 1.5 to 2 percentage points this year. And the continuing recession in Europe and an apparent slowdown in China are not helping matters."

Demand for the state's technology resources — information technology and medical devices — continues to give Massachusetts a growth edge over the nation, said Robert Nakosteen, an economics professor at the University of Massachusetts Amherst's Isenberg School of Management. However, the sector will "take a bit of a hit" as the year progresses because it is largely supported by government spending and contracts, he added.

"The state can't sustain this high rate of growth," Nakosteen said. "We're not in danger of a renewed recession, but the growth we've seen in the last quarter is not going to be sustained."


22.26 | 0 komentar | Read More

Gov asks SBA for loans to those hit by bombing

Gov. Deval Patrick has called on the U.S. Small Business Administration to provide some relief in the form of low-interest loans for small businesses and private nonprofits affected by the Boston Marathon bombings last week.

In a letter, Patrick asked the agency to issue an Economic Injury Declaration for Suffolk County so that long-term and low-interest SBA loans would be made available to businesses and private nonprofits.

"Requesting this federal aid will help Boston and the commonwealth recover faster from the tragic events that unfolded at the marathon," Patrick said. "I urge the Small Business Administration to approve our request quickly to help the small businesses that keep our commonwealth strong rebuild."

In order to receive this federal assistance, the commonwealth must show that businesses suffered substantial economic injury.

If the agency issues the declaration, emergency officials will coordinate with the USSBA and Boston's Office of Emergency Management to have specialists available in the city to work with businesses that may be interested in the loans, Patrick said.

Businesses were gradually allowed to reopen on Boylston Street this week, several days after two bombs went off killing three people and injuring hundreds.


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Boeing says new battery system ensures 787 safety

TOKYO — Boeing Co.'s chief engineer for the 787 Dreamliner said Saturday that changes to the lithium-ion battery system are fully sufficient to ensure the aircraft's safety, although the company has been unable to find the cause of the original battery failures earlier this year that led to groundings of the plane worldwide since mid-January.

Michael Sinnett gave a briefing on the revamped battery to reporters in Tokyo after Japanese and U.S. regulators gave carriers permission to resume 787 flights once battery modifications are made.

The new battery system is designed to prevent a fire, and to contain one should it occur with an "enclosure," a casing around the battery to prevent heat from being released in the aircraft, Sinnett told a news conference in Tokyo.

"Even if we never know root cause, the enclosure keeps the airplane safe, it eliminates the possibility of fire, it keeps heat out of the airplane, it keeps smoke out of the airplane, and it ensures that no matter what happens to the battery, regardless of root cause, the airplane is safe," he said, adding "in some ways it almost doesn't matter what the root cause was."

He said Boeing has identified over 80 potential causal factors and addressed all of them in the new design.

The 50 Dreamliner jets in service worldwide were grounded in mid-January after incidents with smoldering batteries occurred aboard two different planes, leading to hundreds of cancelled flights and revenue losses.

Japan's two biggest carriers have the most 787s — All Nippon Airways owns 17 of the jets, while Japan Airlines has seven. They have begun installing the new batteries over the last week, and airline officials said commercial flights would resume around June as the safety improvements are expected to take several weeks to finish.

It takes five days to completely retrofit one airplane, Sinnett said, and repairs to nine jets are almost complete. New batteries are being shipped from Japanese battery maker GS Yuasa to the airlines, he said.

ANA is planning to conduct a test flight using a modified Dreamliner in Japan on Sunday.

The only U.S. airline using the 787 is United Airlines, which owns six.

Japan is mandating additional safety measures including one test flight after the new system is installed. Operators will need to monitor the new battery system during flight and authorities will require airlines to conduct a detailed sampling inspection of the batteries after a certain period of use.

Special training for all on board personnel including the pilot on 787s is mandated, and airlines are to disclose information on safety measures taken on the 787 to the public.

Boeing has 840 purchase orders of the plane so far.

Sinnett declined to comment on cost for repairs worldwide. He plans to meet with executives from ANA and JAL during his Japan trip.

___

Associated Press writer Emily Wang contributed to this report.


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Obama: Flight delay fix a 'Band-Aid'

WASHINGTON — President Barack Obama says the congressional fix for widespread flight delays is an irresponsible way to govern, but he's prepared to sign the legislation that lawmakers fast-tracked.

He says the bipartisan bill to end furloughs of air traffic controllers is a "Band-Aid" solution rather than a lasting answer to this year's $85 billion in across-the-board spending cuts known as the sequester.

The cuts have affected all federal agencies, and flight delays last week left thousands of travelers frustrated and furious and Congress feeling pressured to respond.

"Republicans claimed victory when the sequester first took effect, and now they've decided it was a bad idea all along," Obama said in his weekly radio and Internet address, aired Saturday.

He singled out the GOP even though the bill passed with overwhelming Democratic support in both the House and Senate.

The president scolded lawmakers for helping the Federal Aviation Administration while doing nothing to replace other cuts that he said harm federal employees, unemployed workers and preschoolers in Head Start.

"Maybe because they fly home each weekend, the members of Congress who insisted these cuts take hold finally realized that they actually apply to them, too," Obama said.

Rushed through Congress with remarkable speed, the bill marked a shift for Democrats who had hoped the impact of the cuts would increase pressure on Republicans to reverse the broad cuts.

Republicans have rejected Obama's proposal to replace the spending reductions with a mix of spending cuts and tax increases.

"There are some in the Obama administration who thought inflicting pain on the public would give the president more leverage to avoid making necessary spending cuts, and to impose more tax hikes on the American people," said Rep. Bill Shuster of Pennsylvania in the Republican address.

Shuster, chairman of the House Transportation and Infrastructure Committee, said the FAA could have averted the flight delays on its own by cutting costs elsewhere and rejiggering work schedules, but chose not to do so.

The bill signed by Obama would let the FAA use up to $253 million from an airport improvement program and other accounts to halt the furloughs through the Sept. 30 end of the government's fiscal year.

Faced with the prospect that emboldened Republicans will push to selectively undo other painful effects of the cuts, the White House said Friday that a piecemeal approach would be impractical, but wouldn't definitely rule out signing other fixes.

___

Online:

Obama address: www.whitehouse.gov

GOP address: www.youtube.com/HouseConference

___

Follow Josh Lederman at https://twitter.com/joshledermanAP


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Report finds solid growth in Massachusetts economy

BOSTON — A report by the University of Massachusetts and Federal Reserve Bank of Boston says Massachusetts's economy grew at a strong 3.9 percent rate in the first quarter of the year.

The report says hiring increased in the January-to-March period, incomes rose and consumer spending improved.

The increase contrasts with a weaker 2.4 percent rate of growth at the end of last year. It's also stronger than national rate of growth in the U.S., which was 2.5 percent.

The Boston Globe reports that Massachusetts regained as of January all the jobs lost in the downturn even as U.S. employment remains below the prerecession peak.

The jobs growth in Massachusetts has helped boost incomes, which have been further supported by the strong stock market and rising home values, leading to stronger consumer spending.

___

Information from: The Boston Globe, http://www.boston.com/globe


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Yankee Candle to sell ‘Boston Strong’ candles

Written By Unknown on Jumat, 26 April 2013 | 22.27

Yankee Candle said this week it will launch a limited edition Boston Strong candle available online for pre-order now to honor the victims affected by the Boston Marathon bombings.

All net proceeds for the commemorative candle will be donated to the One Fund Boston, which was organized by city officials to raise money for families and victims most affected by the tragedy.

Yankee Candle is based in South Deerfield.

"As a Massachusetts-based company, this tragedy has hit so very near to our hearts and we all wanted to help," said Yankee Candle CEO Harlan Kent. "A special candle seemed the perfect solution to offer to our customers and employees who are looking for ways to support the victims."

The candle, which features an image of the Boston skyline in front of the American flag, is available in a large jar at yankeecandle.com for $27.99 while supplies last. Boston Strong candles, comprised of a blend of cinnamon, baking spices and a hint of freshly poured tea, are expected to ship starting May 22, officials said.


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Honey Dew will donate to One Fund Boston

Honey Dew Associates, the parent company of New England franchise Honey Dew Donuts, said participating locations will donate 10 percent of sales made in stores on Monday to the One Fund Boston.

The One Fund, which has already raised more than $20 million, was announced by Gov. Deval Patrick and Mayor Thomas M. Menino to help families most affected by the Boston Marathon bombings.

"We were all shocked and heartbroken by the attacks made at the Boston Marathon and the tragic events that followed. Our prayers are and will remain with the victims and their families," said Richard Bowen, president of Honey Dew Associates, in a statement. "We have seen amazing acts of courage and heroism, and we could not be more proud to be a part of this strong and resilient community."


22.26 | 0 komentar | Read More

Everett announces host agreement with Wynn Resorts

The city of Everett is one step closer to having a resort casino as officials announced a host agreement with Wynn Resorts yesterday.

"We are pleased that we have taken this major step in bringing a Wynn resort to Everett and believe that this host agreement treats Everett residents fairly and will benefit the city for generations to come," Wynn officials said in a statement.

Under terms of the agreement, Wynn will pay $30 million to Everett upon being awarded a casino license by the state's gaming commission. The "community enhancement fee" will be paid to the city in three installments — $5 million within 30 days after Wynn begins construction of the $1.3 billion project; $12.5 million on or before the first anniversary of the initial payment; and $12.5 million on or before the second anniversary of the initial payment.

The funds will be used for capital improvement projects to be identified by the city. Wynn will also advertise and hold at least two events for Everett residents at venues to be approved by the city to publicize its hiring needs in terms of filling construction and permanent jobs, according to the agreement.

Wynn has also agreed to issue at least $50,000 worth of vouchers to Everett businesses outside of the casino site. The casino firm is also responsible for all the project's transportation infrastructure impacts, including road construction necessitated by the development, and will provide public access to the project's waterfront.

Wynn has formally requested to hold a referendum vote on the casino on June 22, according to officials.


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Appeals court dismisses challenge to SEC rule

WASHINGTON — A federal appeals court has dismissed a challenge to a new federal rule requiring publicly traded companies to disclose payments of $100,000 or more to foreign governments.

A three-judge panel ruled Friday that it lacks jurisdiction to hear the lawsuit against the Securities and Exchange Commission rule. The panel says the lawsuit should begin at the district court level.

Business groups including the American Petroleum Institute are challenging the rule on several grounds, including that it amounts to compelled speech in violation of the First Amendment.

The groups have also filed a challenge in U.S. District Court.

The rule stems from the 2010 Dodd-Frank financial overhaul law. It's aimed at providing greater transparency in foreign projects.


22.26 | 0 komentar | Read More

Greater Boston chamber lobbies in D.C. for immigration reform

The Greater Boston Chamber of Commerce said it led representatives of its "Business for Skilled Worker Immigration" national coalition on a daylong trip to Washington, D.C., yesterday to lobby for three key immigration reforms.

The reforms include expansion of H-1B skilled worker visas, creation of entrepreneur visas and increased availability of green cards for STEM graduates, all of which are designed to help improve employer access to top international talent and strengthen the Massachusetts economy, officials said.

The delegation, which also included representatives from the Philadelphia; Austin, Texas; Durham, N.C.; and Naperville, Ill., chambers, met with 12 members of Congress and congressional staff members to urge adoption of skilled worker immigration reforms as part of immigration legislation currently under consideration by Congress.

"We found a lot of support for immigration reform broadly, and strong support for skilled worker reforms among the congressional representatives we met with," said Jim Klocke, executive vice president of the Greater Boston Chamber, who led the delegation. "But there is a lot of work that needs to be done to get immigration reform across the finish line. Our coalition will continue to mobilize support among House and Senate members in the weeks and months ahead."

Business for Skilled Worker Immigration is a coalition of 50 chambers of commerce from across the country.


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Cambridge DNA whisperers

Written By Unknown on Kamis, 25 April 2013 | 22.27

Cambridge-based Gen9 has landed another $21 million to keep pushing the limits of synthetic biology, a cutting-edge field where scientists "play God" by creating customized DNA — the building blocks of life — for a variety of different industries.

As part of the deal, Agilent Technologies of Santa Clara, Calif., gained an equity stake in Gen9 and will join its board of directors as the Bay State startup uses the money to increase the scale of its operations and ultimately to make new products, Gen9 CEO Kevin Munnelly said.

"Gen9 was founded to significantly increase the world's capacity to cost-effectively generate high-quality DNA content for use in transforming industries ranging from chemical and enzyme production to agriculture, biofuels, pharmaceuticals and even data storage," Munnelly said. "Agilent's investment is a powerful validation of our proprietary BioFab platform, and we look forward to working closely with them to further innovate around our manufacturing capabilities and build Gen9 into the leading high-throughput supplier to the synthetic biology marketplace."

The investment will also help Gen9, whose early backers include New England Patriots owner The Kraft Group, to increase its 22-person staff by about 50 percent this year, he said.

The company's clients include large chemical, agricultural and pharmaceutical companies that are "starting to realize synthetic biology can reinvent the way they do business," Munnelly said. "You can actually design what you would like these gene products to do. … You can get very inexpensive genetic constructs on a massive scale."

That kind of power is a double-edged sword, which theoretically could be used to create weapons of mass destruction, he admitted.

Because the field is relatively new, Gen9 is left to "do a lot of self-policing," Munnelly said. "We don't supply people who are looking to do those things."

Agilent makes instruments for high-end measurement and testing, including testing of water for contaminants and of fruit for pesticide residue.

"We anticipate an explosion in the use of biological machines," said Neil Cook, vice president and director of Agilent Laboratories, referring to living organisms such as bacteria or yeast, which can be used to produce everything from medicines to car fuel.

"To make molecules at will is going to fundamentally change the way we see chemical synthesis in the future," he said.


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Facebook: Audit finds privacy practices sufficient

NEW YORK — Facebook says that an independent audit found its privacy practices sufficient during a six-month assessment period that was part of a settlement with federal regulators.

Facebook Inc. said it submitted the findings to the Federal Trade Commission on Monday. The audit was required as part of the social networking company's settlement with the FTC last summer. The settlement resolved charges that Facebook exposed information about users without getting the required legal consent.

Facebook provided a copy of its letter to the FTC along with a redacted copy of the auditor's letter, to The Associated Press. Facebook says the redacted portion contains trade secret information and does not alter the auditor's findings. The name of the accounting firm is also redacted.

The audit covered written policies as well as its data.


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Google agrees to change search display in Europe

BRUSSELS — Google has agreed to change how it displays search results in Europe — including a better labeling of its promoted content and displaying links to competitors — to appease concerns it might be abusing its dominant market position, the European Union's antitrust body said Thursday.

Google's search engine, which is the world's most influential gateway to online information and commerce, enjoys a near-monopoly in Europe. The EU Commission, which acts as the 27-nation bloc's antitrust authority, has since 2010 been investigating whether the company is unfairly stifling competition. It pointed out several areas of concern that Google is now trying to address through the proposed concessions.

Google has offered to more clearly label search results stemming from its own services such as Google News, Google Maps or its shopping and flight search functions. That would allow users to distinguish between natural search results and others promoted by Google. It also agreed to display some search results from its competitors and links to their services, the EU Commission said.

The Commission has often taken a harder line with U.S. tech companies than its American counterparts, the Federal Trade Commission and the Justice Department. Google, which is based in Mountain View, California, was able to settle a similar antitrust complaint on its search business with the FTC in January without making any major concessions on how it runs its search engine.

The EU Commission is now proposing a market test of the concessions for a month. That would give competitors the chance to say whether they deem them sufficient.

"The objective of this process is to try to see if we can achieve a settled outcome in this antitrust investigation," said Commission spokesman Antoine Colombani.

A group of 17 companies competing with Google — including tech giants and internet companies such as Microsoft, Nokia Expedia and TripAdvisor — vowed to carefully study the concessions proposed by Google.

"The most important remedy to Google's abuse of dominance is to require the search monopoly (...) to subject its own products and services to the same policy it uses to rank and display all other websites," said the group, collectively called FairSearch.

Once the Commission accepts the concessions — revised or not — they become legally binding for the company for the next five years. If the deal is accepted, Google would avoid a fine and a finding of wrongdoing.

If Google were then to break its commitments, the Commission could impose a fine of up to 10 percent of its annual worldwide revenue — that would be close to a whopping $5 billion in Google's case.

The Commission said Google will "clearly separate promoted links from other web search results by clear graphical features" and "display links to three rival specialized search services close to its own services, in a place that is clearly visible to users."

Google will also give all websites the option to keep their content from being used in Google's specialized search services, "while ensuring that any opt-out does not unduly affect the ranking of those web sites in Google's general web search results," it said.

In addition, the proposed remedies will give newspaper publishers greater control over what appears in Google's news aggregator, Google News. Google is also giving marketers greater ability to buy ads on rival networks — one of several concessions aimed at appeasing fears it is abusing its dominance of the online advertising market.

To normal users in Europe, the changes in the display of search results will only be visible once the Commission accepts the settlement, most likely later this year.

However, Google's algorithm — the unique mathematical formula that ranks its search results — will remain unchanged. That means the company retains the power to decide what search results are displayed most prominently.

The Commission's investigation was initially triggered by complaints from Google's rivals.

One of them, British comparison-shopping site Foundem, said that at first glance the proposed concessions "fall far short" of ensuring a level playing field in the search results market.

"Instead of promising to end its abusive practices, Google's proposal seems to offer a half-hearted attempt to dilute their anti-competitive effects, by labeling Google's own services and throwing in some token links to competitors' services alongside them," the company said. The measures won't "make a dent in Google's ability to hijack the traffic and revenues of its rivals," it added.

Google worked closely with the Commission on the concessions' design until formally submitting them earlier this month.

"We continue to work cooperatively with the European Commission", Google spokesman Al Verney said Thursday.

Google's web search service has a market share of over 90 percent in the EU, a bloc of over 500 million people that makes up the world's largest economy. In the U.S., competitors Bing and Yahoo have a share of about 30 percent of the search market.

Separately, major tech companies led by Microsoft Corp. this month also filed another EU antitrust complaint against Google, alleging the company uses the dominant position of its Android smartphone operating system to illegitimately promote its own array of internet services.

Microsoft, which has been a leading player in the complaints against Google, has had its own protracted run-ins with the EU Commission. The company from Redmond, Washington, has paid 2.2 billion euros in various fines since investigations began in 1998.

___

Follow Juergen Baetz on Twitter at http://www.twitter.com/jbaetz


22.27 | 0 komentar | Read More

US unemployment aid applications drop to 339K

WASHINGTON — The number of Americans seeking unemployment benefits fell last week to a seasonally adjusted 339,000, the second-fewest in more than five years. The drop suggests that layoffs have declined and that job growth may pick up from last month's sluggish pace.

Applications for benefits dropped 16,000, the Labor Department said Thursday. The four-week average declined 4,500 to 357,500.

Applications are a proxy for layoffs. When they decline, it signals that companies are cutting fewer jobs.

Still, layoffs are only half the equation: Businesses also need to be confident enough in the economy to step up hiring. Many companies have been advertising more jobs but have been slow to fill them. Job openings jumped 11 percent during the 12 months that ended in February, but the number of people hired declined, according to a Labor Department report this month.

The still-uncertain economy has made many companies reluctant to hire. Some employers appear to be holding out for perfect job candidates. In particular, companies say they can't find enough qualified candidates for high-skilled manufacturing and engineering jobs.

Other employers may not be offering high enough pay to attract the candidates they need.

Still, most economists were encouraged by Thursday's report on unemployment benefits, though some cautioned against reading too much into one week's data.

"The downtrend in unemployment remains on track," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.

In March, employers added only 88,000 jobs. That was a sharp drop from the previous four months, when hiring averaged 220,000 per month.

The unemployment rate fell to a four-year low of 7.6 percent from 7.7 percent in February. But the drop occurred because more people out of work stopped looking for jobs. The government doesn't count people as unemployed unless they are actively looking for work.

Most economists expect hiring to improve this month from March's low level. Some think net job gains rose to about 150,000. But a higher net gain may be due more to dwindling layoffs than to increased hiring.

A drop in layoffs can make those with jobs feel more confident about keeping them, even when unemployment is high. Layoffs fell in January to their lowest level in the 12 years that the government has tracked the data. When people feel secure in their jobs, they are more likely to spend money and add to economic growth.

More than 5 million Americans received unemployment aid in the week ending April 6, the latest data available. That is about 80,000 fewer than the previous week. Some recipients may no longer receive benefits because they have found jobs. But many have used up all the benefits available to them.

The economy is expected to have grown at a much quicker pace in the January-March quarter. Most economists forecast that growth accelerated to an annual rate of more than 3 percent in the first quarter, up from just a 0.4 percent rate in the fourth quarter.

Many analysts now think growth is slowing in the April-June quarter, in part because of across-the-board government spending cuts that began taking effect March 1. Those cuts may have made businesses nervous about adding jobs.

But the decline in applications also indicates that, so far at least, the across the government spending cuts haven't triggered more layoffs. Many economists say the cuts will likely force government contractors to cut jobs.


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Boeing: Cause of 787 battery fires remains mystery

NAIROBI, Kenya — A Boeing engineer said Thursday that the cause of the battery problems that have grounded the company's 787 Dreamliners may never be known.

The engineering leader for the 787, Richard J. Horigan, said the root cause of smoldering batteries experienced by the two different 787s may never be known because the evidence was destroyed by heat.

"When we say a root-cause we want to know exactly what happened, what size particles caused the cell to vent ... and we may never get there because the evidence is destroyed. When these cells vent there's a lot of heat damage on those cells," Horigan said.

Horigan also said that all potential causes of the battery fire have been eliminated with the new redesigned battery system. He said it was not the first incident where a problem that caused a malfunction in an aircraft has not been identified definitively, but a solution covering the problem had been found.

Horigan cited the 1996 crash of TWA 800. The plane crashed after a fuel tank explosion, but the cause was never identified.

After TWA Flight 800 exploded off the coast of Long Island, New York, in 1996 killing all 230 people aboard, investigators ultimately pinned the cause on flammable vapors in one of the Boeing 747's fuel tanks. Investigators were never able to conclusively identify the source of the spark that ignited vapors

Horigan said in the case TWA 800 plane experts came up with a solution that "fully encapsulated and eliminated all possible causes of fuel tank fire."

"So it's not uncommon where you have events like this where you don't get a definitive root-cause but you have sufficient confidence in your design solution to know that whatever the root cause is, you've identified it and addressed it," he said.

Air safety authorities grounded Boeing 787s after incidents with smoldering batteries occurred aboard two different planes in January. The U.S. Federal Aviation Administration has approved Boeing's redesigned battery system, which the company says sharply reduces the risk of fire.

Once the FAA approves the fix on individual planes, airlines can start flying them again. United Airlines, the only U.S. airline with the planes, moved one of its six 787s to a Boeing facility in San Antonio, Texas, on Tuesday so it can get the battery fixed. Neither of the battery incidents involved a United jet.

Boeing said Wednesday that deliveries of the 787 should resume in early May. Most of the 50 planes that have been delivered to airlines will be fixed by the middle of the month.


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Fed says redesigned $100 bill ready by October

Written By Unknown on Rabu, 24 April 2013 | 22.26

WASHINGTON — The Federal Reserve announced Wednesday that it will begin circulating a redesigned $100 bill this fall, more than two years after its initial target.

The Fed has set a new target date of Oct. 8. The redesigned note incorporates added security features, such as a blue, 3-D security ribbon and a disappearing Liberty Bell in an inkwell. The features are designed to thwart counterfeiters.

The revamped bill had been expected to go into circulation in February 2011. But in December 2010, officials announced an indefinite delay. They said they needed more time to fix production issues that left unwanted creases in many of the notes.

"We made numerous process changes to address the creasing issue and we are back in full production," said Dawn Haley, a spokeswoman for the Bureau of Engraving and Printing.

Haley said those changes included modifying the paper feeder on the printing presses to accommodate variations in the paper associated with the 3-D security ribbon. The blue security ribbon is composed of thousands of tiny lenses. Those lenses magnify the objects underneath them to make them appear to be moving in the opposite direction from the way the bill is being moved.

Benjamin Franklin portrait will remain on the $100 bill, the highest value denomination in general circulation. It is also the most frequent target of counterfeiters.

The $100 bill is the last note to undergo an extensive redesign aimed at thwarting counterfeiters with ever-more sophisticated copying machines. The redesigns began in 2003 when the government added splashes of color to the $20 bill. That makeover was followed by redesigns for the $50, $10 and $5 bills. The $1 bill isn't getting a makeover.

An extensive public education effort is planned for businesses and consumers around the world to raise awareness about the new design and provide information on how to use the new security features. Fed officials said information about the redesigned $100 can be found at www.newmoney.gov .


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Boeing aims for mid-May restart of 787 deliveries

Boeing says it will begin delivering 787s again in early May.

The 787 has been grounded since mid-January because of smoldering batteries. Federal authorities have approved Boeing's redesigned battery system.

Boeing CEO Jim McNerney says the new battery setup has been installed on 10 787s that belong to airlines, and on nine more that have been built but not delivered.

He says "the bulk" of airline-owned 787s will get the battery fix by mid-May. Each installation takes about five days.

Boeing has kept producing the 787 even though it was grounded. But it can only collect the cash from airlines when it delivers the planes — so restarting deliveries is important to the company.


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Mobile ad firm Nanigans raises $5.8M

Nanigans, a Boston-based advertising technology company, said this week it has closed $5.8 million in a round of funding.

The financing was led by Avalon Ventures of Cambridge. In 2011, the company received $3.1 million in funding, officials said.

With the latest round of funding, Nanigans will focus on three core growth areas -- expanding its paid social offerings and ramping up mobile product offerings; vertical diversification; and hiring across the company's product, engineering and customer success teams in North America and Europe, officials said.

"We're at a point of confidence with the progress we've made as a result of our Series A funding, and it's now time to enter the next phase of the Nanigans story," said company CEO Ric Calvillo.

Nanigans has offices in Boston, New York, San Francisco and London.


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Gen9 lands $21M investment from Agilent Technologies

Cambridge-based Gen9 Inc. said today it has received a $21 million investment from Agilent Technologies to further invest in product development and expand the "commercial infrastructure" for its synthetic biology business.

As part of the investment, Agilent, which is based in Santa Clara, Calif., has secured an equity stake in the company and will join its board of directors, officials said. Other Gen9 investors include Draper Fisher Jurvetson, The Kraft Group, PBM Capital Group and a number of angel investors, including Scott A. Schoen and Weili Dai.

Gen9, which was founded in 2009 and develops scalable technologies for synthesizing genes, will also incorporate Agilent's Oligonucleotide Library Synthesis technology into its manufacturing process to allow for the large-scale creation of pathway constructs and DNA libraries, the company said.

"Gen9 was founded to significantly increase the world's capacity to cost-effectively generate high-quality DNA content for use in transforming industries ranging from chemical and enzyme production to agriculture, biofuels, pharmaceuticals, and even data storage," said Gen9 President and CEO Kevin Munnelly in a statement. "Agilent's investment is a powerful validation of our proprietary BioFab platform and we look forward to working closely with them to further innovate around our manufacturing capabilities and build Gen9 into the leading high-throughput supplier to the synthetic biology marketplace."


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J.P. Morgan Chase to donate $500G in race entry fees to One Fund

J.P. Morgan Chase and Mayor Thomas M. Menino said this week that the 30th annual J.P. Morgan Corporate Challenge will continue as planned on June 20.

The financial services firm, which has assets of $2.4 trillion, said it will contribute all entry fees, totaling more than $500,000, to One Fund Boston, an organization established last week to provide financial assistance to those most affected by the Boston Marathon bombings.

Officials said yesterday the One Fund Boston hit the $20 million mark. The firm added 12,000 runners have registered for the 3.5-mile race in Back Bay.

"Road racing in the city of Boston with go on, thanks to the spirit and determination of the great people who live here," Menino said in a statement. "We are thrilled that the J.P. Morgan Corporate Challenge is scheduled for June 20 and we appreciate the company's commitment to support this city in the wake of a terrible tragedy."


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DuPont says first-quarter net income soars

Written By Unknown on Selasa, 23 April 2013 | 22.27

DOVER, Del. — The DuPont Co. said Tuesday that its net income more than doubled in the first quarter on a gain from the sale of its performance coatings unit and strong continuing results in its agricultural unit.

DuPont, based in Wilmington, Del., reported net income of $3.35 billion or $3.58 per share for the quarter ended March 31. That's up from $1.49 billion, or $1.58 per share, a year ago.

Revenue increased 2 percent to $10.4 billion, matching Wall Street expectations, with 4 percent volume growth in North American and Latin America. Sales were flat in the Asia-Pacific region and down slightly in Europe, the Middle East and Africa. Overall, global volume was up 2 percent.

DuPont's results include net income from discontinued operations after taxes of $1.9 billion, compared to $95 million in last year's first quarter. The latest results reflect completion of the company's sale of its performance coatings unit, which produces automotive and industrial paints, for $4.9 billion to The Carlyle Group, a private equity firm.

DuPont also took a one-time pre-tax charge of $35 million to settle claims related to use of its weed killer Imprelis, which has been blamed for damaging evergreen trees.

Excluding one-time items, DuPont reported operating earnings of $1.46 billion, or $1.56 per share, for the quarter compared with $1.5 billion, or $1.64 per share, for the first quarter of last year.

"The first quarter finished as expected, with the strong agriculture performance and performance chemicals' decline from peak levels last year," said DuPont chairwoman and CEO Ellen Kullman.

Its shares rose 32 cents to $50.73 in premarket trading.

DuPont said sales in its agriculture unit increased 14 percent in the first quarter to $4.67 billion, as volume grew 8 percent and prices from new seed and crop protection products increased 6 percent. Operating earnings totaled a record $1.5 billion, up 13 percent.

In contrast, the performance chemicals unit saw sales plunge 17 percent to $1.5 billion, as volumes slid 6 percent and prices dropped 11 percent. Operating earnings were down 56 percent to $251 million. The results reflect substantial price declines in the sluggish market for titanium dioxide, a whitening pigment used in products ranging from toothpaste to paint, and weak demand for fluoropolymers. DuPont said titanium dioxide volume compared to last year's first quarter but increased 8 percent compared to the last quarter of 2012.

DuPont reaffirmed its full-year outlook for operating earnings of $3.85-$4.05 per share, compared to $3.77 per share for 2012.

The company also announced a 5 percent increase in its quarterly cash dividend.


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Limping al-Qaida offshoot rearms with Twitter

Battered by a French-led military campaign in Mali, al-Qaida's North African arm is trying something new to stay relevant: Twitter. The PR campaign by the terror network seeks to tap into social grievances and champion mainstream causes such as unemployment, all in bid to reverse decline and win new followers.

The hearts-and-minds approach echoes an outreach program the group had been trying for years in Mali, where it provided food, services and cash to win over the locals. This new campaign is more ambitious: It aims to allow al-Qaida in the Islamic Maghreb, or AQIM, to move the fight at least partly off the battlefield by appealing to widespread concerns, such as the repression and a sense of injustice that galvanized the Arab Spring revolts.

"This is our only means to communicate with the international public opinion, since we are terrorists according to the dictionary of America and its agents in the region," AQIM's media arm, Al-Andalus Media Foundation, said last week as part of an unusual question-and-answer session on Twitter. The remark came in response to a question about its choice to go virtual, one of dozens from journalists and others.

The al-Qaida affiliate — known for its kidnapping raids in Mali and deadly attacks in its home base in Algeria — has had little trouble finding an audience. In its first two weeks on Twitter, it drew more than 5,000 followers, including some journalists and scholars.

AQIM's Algerian militants used a soft power strategy, including chocolates and even baby clothes, to try to gain acceptance from Malians whose help they needed to establish a foothold in the country's vast north, according to accounts of locals documented in 2011 by The Associated Press. They are now casting a wider net, turning the hearts-and-minds approach to countries across the region.

And as the Syrian conflict monopolizes extremists' attention — and draws jihadists — AQIM's soft power push may be aimed at bringing its patch of northern Africa back into the spotlight.

"We need all the specialties like such as medicine, chemistry, electronics and manufacturing arms and automatic media," it said in answer to a question posted on Twitter, adding that it also needs "other scientific and management skills and, before all that, the students of Shariah (Islamic law) knowledge."

But even before the Twitter account was officially opened March 28, statements from AQIM's media handlers addressed social, not military, concerns.

AQIM emerged in 2006 from a previous movement of radical Algerian insurgents, and spread its extremism around a large area of the Sahara. By last year it reigned over northern Mali along with two other radical groups, meting out brutal punishment to those who refused its strict interpretation of Islamic law. Now, a French-led military intervention that began Jan. 11 has radical leaders and fighters on the run, in hiding or dead.

In Algeria, Mali's northern neighbor, AQIM was behind murderous attacks, including high-profile suicide bombings in 2007 against the U.N. mission and government buildings that left scores dead. It now manages only sporadic, if deadly, attacks.

The group has direct links to jihadist groups in northern and western Africa and to al-Qaida central, notably to Aymen al-Zawahri, who replaced Osama bin Laden as leader and who announced the formation of AQIM in 2006. The group is viewed as an ongoing threat by Western governments and nations around the region. The United States is backing the military intervention by France and a half-dozen African nations with intelligence surveillance. About 100 American troops were deployed in February to Mali's neighbor, Niger, to man a base for unarmed drones to conduct surveillance of AQIM and other jihadists. France says it will keep a long-term, 1,000-strong counterterrorism force in Mali even after the current fighting dies down.

In statements and tweets in Arabic and awkward English, AQIM has lashed out against "Crusader France" and the nation's president, Francois Hollande, who ordered the French intervention in Mali. On its first official day on Twitter, AQIM's media arm issued a statement announcing the death of French hostage Philippe Verdon — not confirmed by France — and warning that others could be killed if the approximately 4,000 French troops in Mali are not withdrawn. AQIM is holding five other French citizens hostage in Mali.

The organization's media arm threatened France numerous times in its sprawling question-and-answer session on Twitter, calling on "all the Muslims to target France and its interests and subjects inside and outside France."

The media arm, in response to a question from The AP, said its new-style communications have "nothing to do with the military situation in Mali." However, AQIM's recent efforts to take up the causes of the people have coincided with its loss of a large number of fighters in Mali, as well as its hold over the country's north.

The propaganda campaign has focused, above all, on AQIM's birthplace, Algeria, where the group is in a long arc of decline and has all but lost its firepower.

Late Sunday, in their latest tweet, AQIM's communicators linked to a statement that made the group sound more like an Algerian opposition party than a terrorist organization. As the country looks to next year's presidential election, AQIM's media handlers denounced the "thieves party" of President Abdelaziz Bouteflika and bemoaned "the lost confidence of those poor people who are suffering."

The media arm also is denouncing lack of free expression and reliable Internet access in Algeria and expressing support with unemployed protesters in oil- and gas-rich southern Algeria. A recent tweet expressed sympathy for the plight of Algeria's municipal guards, armed citizens who once were the eyes and ears of Algerian security forces but are now being disbanded without recompense. The tweet said they will be spared pursuit by AQIM if they lay down their weapons.

"This is a direct consequence of the Arab Spring," Jean-Paul Rouiller, director of the Geneva Center for Training and Analysis of Terrorism, said of AQIM's communications campaign. "They are less violent in what they write, more social, trying to be more connected to the problems that people might face, and specifically in Algeria."

The Arab Spring, the popular revolts that started in Tunisia in 2010 and ousted autocrats around the Arab world, skipped Algeria. There, citizens mainly have sought calm after a long spiral of violence that killed an estimated 200,000 and peaked in the 1990s.

With neighboring Tunisia and Libya restive after their Arab Spring rebellions, AQIM appears to think "that there are actions that they can trigger to push the situation a bit further," Rouiller said. The organization "wants to be part of a second wave."

The al-Qaida offshoot is older than other affiliates but is playing social media catch-up with its more media-savvy terror counterparts. Al-Shabaab in Somalia, for instance, is among designated terror groups using Twitter, although the outfit is not an al-Qaida offshoot. Syrian's Jabhat al-Nusra, or Nusra Front, which pledged allegiance to al-Qaida earlier this month, has been using Twitter during the two-year civil war; it is attracting hundreds of North African jihadist fighters, particularly from Tunisia, where a moderate Islamist government is trying to contain a burgeoning movement of ultraconservative Muslims known as Salafis.

"All the focus is on Syria, and the Mali conflict is sort of in the backwater of international attention," said Magnus Ranstorp of the Swedish National Defense College. "In some strange way, it's almost competition ... You have these two theaters that are live and hot and active and need recruits."

Addressing that situation, AQIM's media arm made an unusual admission in its first statement to followers since the French operation in Mali, admitting it was "in direst need" of help from jihadists in the "lands of disbelief" to support its operations in Mali and Algeria.

Rouillier and others said they doubted Twitter would become AQIM's main recruiting tool. But the fact the account was attracting followers indicated it was filling a vacuum.

"We're not speaking here of Rihanna," Rouillier said recently. The number of followers "tells a lot about the impact. There's something going on here."

___

Follow Ganley on Twitter at: http://twitter.com/Elaine_Ganley


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TV reporter says he's fired for profanity on air

BISMARCK, N.D. — A weekend news anchorman for a North Dakota television station says he was fired after he opened his first-ever broadcast with obscenities.

A.J. Clemente says on Twitter that KFYR-TV of Bismarck fired him Monday.

The NBC affiliate said in an earlier statement that Clemente was suspended following the Sunday evening broadcast. General manager Dick Heidt says he cannot discuss the incident because it's a personnel matter.

The station posted an apology online and co-anchorwoman Van Tieu also apologized during the 10 p.m. newscast.

Video of Clemente's two-word uttering was immediately posted online via social media sites, and the hashtag "Keep AJ" started trending on Twitter in support of the self-described West Virginia University graduate.

Clemente tweeted after the broadcast: "That couldn't have gone any worse!"


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Solid earnings drive stocks higher on Wall Street

NEW YORK — Strong earnings from a range of U.S. companies are driving stock prices higher in the early going on Wall Street.

Coach, Travelers and Lockheed Martin were among the winners shortly after the opening bell after the companies reported better results than analysts were expecting.

The Dow Jones industrial average was up 110 points at 14,678 early Tuesday, a gain of 0.8 percent.

Other indexes also rose. The Standard & Poor's 500 index was up 11 points, or 0.7 percent, to 1,573. The Nasdaq composite rose 25 points, or 0.8 percent, to 3,285.

Netflix soared 22 percent to $213 after reporting a big gain in subscribers in the first quarter.

Apple posts earnings after the market closes.


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MF Global's trustee sues former CEO Corzine

NEW YORK — The trustee in the MF Global Holdings bankruptcy case has sued ex-CEO Jon Corzine and other former executives, alleging that they "failed to act in good faith" while running the company.

The lawsuit, filed Monday in bankruptcy court in New York, says Corzine and two other top executives "dramatically changed" the company's business plan after he became CEO in late 2010. They then failed to update controls and other systems that were already weak, the lawsuit said.

Corzine then pushed the company into making big bets on bonds issued by European countries, a move that proved disastrous during the implosion of the debt crisis the following summer.

According to the lawsuit, the company's controls were so bad that it couldn't determine its liquidity levels in real time, a weakness that ultimately contributed to the company's collapse in October 2011. It portrays Corzine and others as executives who were aware of the risks but purposefully ignored them. Corzine, who stepped down as MF Global CEO soon after the collapse, is the former co-chairman of Goldman Sachs, a former Democratic U.S. senator and the former governor of New Jersey.

Corzine and two of his top executives, the chief operating officer and the chief financial officer, "were repeatedly warned — in reports, meetings, emails, and in-person exchanges — of the failures and need for improvements in the Company's procedures and controls," the lawsuits says. "Yet, instead of taking necessary steps to fix those problems," Corzine and his deputies "pursued an even riskier business plan."

The lawsuit is notable not because of any significant revelations but because it represents an escalation in the battle between Corzine and the bankruptcy trustee, former FBI director Louis Freeh. Freeh is overseeing the wind-down of MF Global Holdings, which means he is trying to recover money for creditors.

Earlier this month, Freeh filed a scathing report about Corzine and other executives with many of the same accusations. At the time, he said that he had already prepared a complaint against the former executives, but agreed to postpone filing it until after trying to resolve the issues through mediation.

A Corzine spokesman at the time condemned the portrayal of the former CEO. Steven Goldberg, the spokesman, said the report ignored the fact that banks and other firms that were MF Global's trading partners failed. They didn't pay what they owed to MF Global, a key cause of the company's collapse.

It's not the first lawsuit against Corzine: MF Global shareholders and customers have also filed complaints.

A separate trustee, James Giddens, is in charge of recovering money for customers of the parent company's broker-dealer, MF Global Inc.


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Oil stays above $88 per barrel

Written By Unknown on Senin, 22 April 2013 | 22.26

The price of oil rose modestly above $88 a barrel Monday as traders returned to commodities after big sell-offs last week.

By early afternoon in Europe, benchmark crude for May was up 48 cents to $88.49 in electronic trading on the New York Mercantile Exchange. On Friday, the Nymex contact rose 28 cents to finish at $88.01 a barrel.

Analysts said relatively low prices rekindled interest among buyers. Traders cautiously returned to buying certain key commodities Friday, including gold and oil, after big sell-offs.

They also said prices are being supported by the possibility that oil-producing countries could reduce output in order to boost prices. Crude has lost about $9 a barrel since the beginning of the month amid concerns of sluggish growth in China and the U.S., while oil remained well supplied.

Traders were awaiting the release later Monday of existing home sales for March in the U.S., data that will help clarify which direction the U.S. economy is headed. The release of corporate earnings from companies like heavy equipment maker Caterpillar and toy maker Hasbro will shed light on the private sector.

Prices were also supported by shipping data which analysts say point to OPEC slowly cutting output.

Figures cited by Frankfurt's Commerzbank from consultant firm Oil Movements show that OPEC oil deliveries are due to fall by 220,000 barrels a day in the four weeks to May 4 compared with the previous four weeks.

If true, oil shipments would be at their lowest level in two months, Commerzbank said.

Near the end of 2012, Saudi Arabia made an unannounced cut to its oil shipments of around 1 million barrels a day, citing slack demand.

The June contract for Brent crude, which is used to price oil used by many U.S. refiners, was up 77 cents to $100.42 on the ICE Futures exchange in London.

In other energy futures trading on the Nymex:

— Gasoline rose 2.34 cents to $2.7848 per gallon.

— Heating oil added 2.61 cents to $2.8018 a gallon.

— Natural gas fell 7.3 cents to $4.335 per 1,000 cubic feet.

___

Pamela Sampson in Bangkok contributed to this season.


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Sprint forms committee to evaluate Dish offer

OVERLAND PARK, Kan. — Sprint Nextel has formed a committee of independent directors to review a $25.5 billion buyout offer from Dish Network.

The committee has retained Bank of America Merrill Lynch to act as its financial advisor and will provide an assessment to the full board, the company said Monday.

Dish Network Corp., the third-largest U.S. pay-TV provider, made an unsolicited offer for Sprint earlier this month. It's attempting to block the sale of 70 percent of Sprint to Softbank Corp. of Japan, a deal which Sprint agreed to in October.

Sprint, based in Overland Park, Kansas, is the third-largest U.S. cellphone company.

Dish's offer is driven by new technology and the growing demand from consumers to watch whatever they want, wherever they want to watch it. Sprint's technology could allow, Dish, based in Englewood, Colo., to get closer to that goal.

Sprint shares rose 2 cents to $7.19 in premarket trading.


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Hasbro says Monopoly contest helped lift sales

PAWTUCKET, R.I. — Hasbro reported first-quarter results Monday that beat Wall Street expectations as the toy maker benefited from an online contest that let people vote to eliminate one of its Monopoly tokens and introduce a new one.

The Pawtucket, R.I., maker of G.I. Joe, My Little Pony and Transformers said revenue rose for three of its four categories: games, girls and preschool. Its boys category continued to face troubles, with sales down 20 percent.

Rival Mattel, which is the world's biggest toy maker with its Barbie dolls, also reported better-than-expected results last week, as strong sales of dolls like Monster High, Disney Princess and American Girl helped more than quadruple net income.

Hasbro, meanwhile, said growth in its girls category for the period was driven by Furby, My Little Pony and One Direction. Play-Doh helped boost its preschool category and action games such as Angry Birds Star Wars helped fuel growth in the games category.

The company also noted that the Monopoly contest was "tremendously successful" and that it plans to follow up with new versions of the game.

The Facebook campaign earlier this year let people vote to eliminate one of the eight tokens that identify the players and introduce a new one. Ultimately, a cat token replaced the iron.

Toy makers are looking to adapt and reinvent old brands as the industry faces a slowdown in developed markets such as the U.S. and Europe, where mobile devices and electronics are stealing attention away from toys.

Hasbro has embarked on a cost-cutting program to maintain profitability, including a push to slash its workforce by 10 percent. The move also includes consolidating facilities and reducing the number of product extensions.

By 2015, it says the program will result in $100 million in savings annually. For now, the changes are taking their toll through restructuring charges.

For the quarter, Hasbro lost $6.7 million, or 5 cents per share. That compares with a loss of $2.6 million, or 2 cents per share, a year ago.

When stripping out the impact of a restructuring charge and tax adjustments, however, Hasbro Inc. said it earned 5 cents per share. Analysts expected adjusted earnings of 4 cents per share.

Revenue rose more than 2 percent to $663.7 million despite a hit of more than $3 million from foreign exchange rates.

In North America, revenue growth of 4 percent was driven by the girls and games categories. International revenue was flat, or up 1 percent when excluding the impact of foreign exchange rates. The increase was driven by growth in Latin America and Asia, as well as the games, girls and preschool categories.

Analysts expected $642.1 million in revenue.

Hasbro shares rose $2.59, or 5.7 percent, to $47.61 in morning trading after rising as high as $48.46 earlier, the highest since December 2010.


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G-20 approval of Japan's easing drives markets up

PARIS — A global stamp of approval for Japan's aggressive monetary policy and the re-election of the Italian president pushed world stocks higher Monday.

Upending expectations, finance ministers and central bank governors from the world's largest economies gave their blessing this weekend for Japan's monetary easing, which has driven the value of the yen against the dollar down more than 20 percent since October.

That sent Japan's Nikkei 225 index to its highest close in nearly five years, encouraging other stock markets to follow suit.

European investors were also relieved to see that Italy had re-elected the widely respected Giorgio Napolitano to the presidency, ending weeks of uncertainty. But analysts cautioned the solace could be short-lived.

In afternoon trading in Europe, the FTSE index of British shares rose 0.3 percent to 6,302. France's CAC-40 was up 0.4 percent at 3,666, and Germany's DAX added 0.7 percent to 7,509.

EU statistics showed government deficits across the 17-country eurozone declined in 2012. However, the figures also showed deficits rose in countries imposing the toughest austerity measures, such as Greece, Spain and Portugal.

Wall Street was largely in a holding pattern Monday, ahead of the publication of earnings of several U.S. companies this week. The Standard & Poor's index was flat at 1,555, while the Dow Jones industrial average was off 0.1 percent at 14,528.

Earlier in Asia, the Nikkei closed 1.9 percent higher at 13,568.37. South Korea's Kospi added 1 percent to 1,926.31, and Hong Kong's Hang Seng closed 0.1 percent higher at 22,044.37. Australia's S&P/ASX 200 rose 0.7 percent to 4,966.60. Shares in mainland China were mixed.

Oil was also buoyed by the enthusiasm. Benchmark crude for May delivery was up 58 cents at $88.85 per barrel in electronic trading on the New York Mercantile Exchange.

The decline of the yen has stirred up concerns among Japanese exporters' key rivals, such as the U.S. and South Korea that Japan's real goal is to weaken the yen as a way to gain trade advantages. But officials at the G-20 meeting were reluctant to voice any opposition to the Bank of Japan's monetary stimulus program.

Other countries may now feel free to rein in their own currencies.

"The rapid weakening of the yen, as a direct result of the ultra-loose monetary policy, has led to suggestions that the BoJ (Bank of Japan) would be warned about future easing, which could prompt other central banks to act in order to limit the appreciation of their own currency," said Craig Erlam, a market analyst with Alpari Research.

Sebastien Galy of Societe Generale cautioned that the good mood in markets may not last long. In Europe, the results of the Italian election may pave the way for an unstable coalition government, shaking confidence again.

"A coalition government, born more out of political necessity than a popular mandate, is unlikely to be able to pursue the necessary structural reforms to the Italian economy, and is also likely to be short-lived," said Galy.

He advised clients to be wary of the euro. The single currency fell 0.2 percent against the dollar Monday to $1.3020.

___

Associated Press Business Writer Youkyung Lee in Seoul, South Korea, contributed to this story.


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European austerity yields meager results in 2012

LONDON — The austerity pain pursued by a number of European countries led to very little gain in 2012.

Figures Monday from Eurostat, the European Union's statistics office, showed that many of the countries hit hardest by Europe's financial crisis, such as Portugal and Spain, saw their budget deficits increase — even though they have pursued strict austerity policies designed to get their public finances back into shape.

Though Europe's combined deficit level fell during the year — largely thanks to Germany swinging into a budget surplus — countries continue to reel from the impact of austerity. The overall debt of the 17 EU countries that use the euro rose from 8.2 trillion euros ($10.7 trillion) to 8.6 trillion euros as the region sank back into recession.

After the European crisis over too much debt broke out in late 2009, the region's governments slashed spending — either to meet conditions for bailout loans, or to reassure jittery bond markets. But austerity has also inflicted severe economic pain. Slashing spending and raising taxes have proved to be less effective at reducing deficits than initially thought — and perhaps counter-productive. As economies shrink, so do their tax revenues, potentially making it harder to close budget gaps.

"The news that the eurozone budget deficit shrank again last year will be hailed as evidence by some that austerity is working," said Ben May, European economist at Capital Economics. "But the fact that most economies' deficits have fallen by less than expected and that the consolidation has coincided with deeper than anticipated recessions confirms that the costs have been large."

Overall in the eurozone, the deficit dropped in 2012 to around 353 billion euros ($460 billion) from 391 billion the year before. Germany was largely behind the improvement as it swung back into surplus.

As a result, the budget deficit of the whole eurozone fell to 3.7 percent of the region's annual gross domestic product from the previous year's 4.2 percent. Countries in the EU are supposed to keep deficits at or below 3 percent. Nevertheless, overall borrowing in the eurozone is lower than in the U.S., which has a budget deficit of around 7 percent of annual GDP.

In 2012, eurozone debt was worth 90.6 percent of the region's GDP, up from 87.3 percent the year before.

Here's a look at the performance of some of the eurozone countries during 2012:

GREECE — The bailed-out country at the epicenter of the region's debt crisis — it was first bailed out in 2010 and has received up to 270 billion euros in assistance — saw mixed results in 2012. Though the government managed to reduce its annual borrowing to 19.4 billion euros from 19.8 billion the year before, the deficit swelled to 10 percent of GDP from 9.5 percent because of a deepening recession. Even so, the country has lately been winning plaudits for its progress — in 2009, Greece's annual borrowing stood at over 36 billion euros. When not counting the cost of paying interest on its existing debt, the government hopes to post a surplus over the coming year. Public debt fell in 2012 to 156.9 percent of GDP from 170.3 percent, partly because private holders of Greek bonds agreed to a big writedown.

IRELAND — The second euro country to receive a bailout is widely viewed as the poster child of austerity and its performance in 2012 showed further improvements. As well as reducing annual borrowing to 12.5 billion euros from 21.3 billion, Ireland saw its deficit shrink to 7.6 percent of annual GDP against 13.4 percent the year before. Unlike fellow bailout recipients, Ireland has managed to post some economic growth for most of the past three years and is ahead of its target to prune the budget deficit to 3 percent by 2015. In a further sign of its reputational rebound, Ireland has resumed limited auctions of long-term bonds at a relatively low cost and is confident of exiting its bailout program later this year.

PORTUGAL — In spite of winning praise from international creditors, Portugal's deficit swelled to 6.4 percent of annual GDP from 4.4 percent the year before. However, the 2011 figure was flattered by the transfer of private banks' pension funds to the Treasury, which temporarily improved the balance sheet. In 2012, the government's plan to use 3.1 billion euros from the privatization of airport management company ANA to lower its deficit fell foul of Eurostat, which didn't allow the inclusion of that revenue in the deficit calculation.

SPAIN — In spite of efforts to get a handle on its debts, Spain saw its budget deficit rise to 10.6 percent of GDP in 2012, the highest in the eurozone. It rose from 9.4 percent the year before as the country took 40 billion euros in rescue loans to help its banks. Excluding the rescue funds, Spain says its deficit last year improved to just below 7 percent, but still above the initially pledged target of 6.3 percent.

FRANCE — At first glance, the public finances in Europe's second-biggest economy appear to be in relatively good health — its deficit in 2012 fell to 4.8 percent of annual GDP from 5.3 percent the year before. However, there are growing concerns over the outlook as growth has stalled. The French government originally promised to reduce its deficit to 3 percent this year, bringing it in line with European rules. But slow growth has knocked it off track, and the government has said the deficit will be 3.7 percent. France has a history of overly rosy forecasts, and some say the government's numbers are still too optimistic.

GERMANY — While many of its euro partners are struggling to get a grip on their public finances, Germany has done so and more. In 2012, it posted a budget surplus of 4.1 billion euros, in contrast to the 20.2 billion euros deficit the year before. A number of factors helped, including restrained spending, lower debt servicing costs and falling unemployment, which means less outlays for jobless benefits. But economists said state income was also significantly boosted by so-called "bracket creep" — the failure of the government to move tax rates up along with inflation. That means workers who are increasingly winning pay raises in the country's tight job market are pushed into paying higher rates — and more tax.

____

Elena Becatoros in Athens, Sarah DiLorenzo in Paris, Ciaran Giles in Madrid, Barry Hatton in Lisbon, David McHugh in Frankfurt and Shawn Pogatchnik in Dublin contributed to this report.


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World finance leaders say growth still weak

Written By Unknown on Minggu, 21 April 2013 | 22.26

WASHINGTON — While world finance leaders say the global economy has improved slightly this year, they said the outlook for the future was uneven with growth and job creation still too weak.

The policy-setting committee for the 188-nation International Monetary Fund said governments need to act decisively to nurture a lasting recovery and restore the resiliency of the global economy.

But the major economies could not reach a consensus on what policies to follow as they move forward.

"The commodity that is in shortest supply now is confidence," Tharman Shanmugaratnam, the chairman of the IMF panel and Singapore's finance minister told reporters. "We need to regenerate optimism and confidence."

The World Bank announced that its steering committee had approved a proposal to establish the goal of eliminating extreme poverty by 2030. The bank defines this condition as living on less than $1.25 a day. The bank estimates there are 1.2 billion people living in extreme poverty, mainly in sub-Saharan Africa and south Asia.

A spokeswoman for Oxfam , the anti-poverty group, Emma Seery, said while the World Bank target was welcome "we are concerned that it will duck the tough choices needed to reach it."

The weekend began with two days of discussions among finance leaders of the Group of 20 nations, composed of major economies such as the United States, Germany and Japan and fast-growing developing nations like China, Brazil and India. The meetings of the IMF and its sister lending institution, The World Bank, followed.

The finance ministers tried to show they were cooperating even though they did not resolve differences that surfaced after an initially flawed bailout of Cyprus in March. The banking troubles on the Mediterranean island renewed fears that a prolonged European debt crisis still posed risks to the global economy.

The U.S. urged European nations to scale back their austerity programs of spending cuts and tax increases in favor of more stimulus to boost growth and combat high unemployment in countries such as Spain and Greece.

But the push was met with resistance from Germany and Britain, which believe heavily indebted European nations must reduce their debts to give markets confidence and keep government borrowing costs low. In the end, the financial leaders sought to bridge the difference by issuing economic blueprints that left room for both the growth and austerity camps to claim victory.

The G-20 nations did reject proposals to issue hard targets for reducing budget deficits, a victory for the United States and Japan, which had argued for more flexibility.


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Israel approves 'Open Skies' deal with EU

JERUSALEM — Israel's Cabinet on Sunday approved a deal to allow more EU flights, hours after the country's airlines went on strike out of concerns that the agreement would cost them jobs and possibly even ruin their companies.

The approval of "Open Skies" raised the possibility of a longer, broader strike by Israel's major labor union. Already, hundreds of people scheduled to fly on Israel's three carriers, El Al, Arkia and Israir, have been stranded.

As hundreds of union workers protested outside, the Cabinet overwhelmingly approved the agreement, which allows more carriers to serve the Israeli market.

"The Open Skies reform is good for Israel. It will lead to the lowering of prices and increase competition, and it will not harm work places in the market, rather the opposite," Israeli Finance Minister Yair Lapid said.

He said the deal would not be implemented until April 2014.

Prime Minister Benjamin Netanyahu praised the deal. "The goal of the reform that we approved today is to lower the prices of flights to and from Israel and to increase incoming tourism," he said.

Tourism is a major industry in Israel, bringing in more than 3.5 million visitors a year.

Critics warned that Israel's small fleet of planes, along with high security costs, would hinder it from competing with larger international airlines.

Ofer Eini, head of the powerful Histadrut labor union, told Israel Radio that he favors Open Skies, but the deal needs to be amended to secure local jobs. He said the arrangement could cause local airlines to collapse, warning that thousands of jobs are at risk.

Although Sunday's strike did not affect flights by international carriers, Eini indicated the work stoppage could be broadened. He did not elaborate, but a strike by unionized airport workers or security staff, for instance, could bring the whole airport to a standstill.

A spokeswoman for El Al, Israel's national carrier, said of 22 flights planned for Sunday, 14 were brought forward before the strike began and eight were canceled. She said the strike affected hundreds of passengers.

Travelers were given the option to transfer to other flights or get their money back, she said. She requested anonymity in line with company policy.

Some tourists stuck at the airport said they had alternate flights, but they were facing long delays.

"There are hundreds of people that can't get out, and it's a little upsetting," said Darius Schwartz, a New York native who now lives in the Israeli town of Beit Shemesh near Jerusalem. "I'm a loyal El Al customer and I'll continue to fly El Al, but there's no reason to go on strike just because of ratifying a treaty that would equalize competition," Schwartz said.

Travelers with Israir on domestic flights to Eilat, Israel's Red Sea resort, were provided with buses. The flight lasts half an hour, but the bus trip takes about four hours.

The Open Skies agreement is meant to reduce restrictions on European carriers for using Israeli airspace, increasing competition. It would expand the number of flights between Israel and Europe and allow Israel to become a layover hub. Now it is a final stop.

Hundreds of union members demonstrated outside the Cabinet meeting, despite unseasonably rainy weather. Israeli police spokesman Micky Rosenfeld said officers arrested eight protesters for "causing a public disturbance."

Arieh Katz, a longtime El Al worker, said at the rally, "They are finishing off the company. The pain is immense. Irresponsible people are running this government, and we will pay the price in the end."


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Blackstone founder creates $300M China scholarship

BEIJING — A U.S. private equity tycoon announced Sunday the establishment of a $300 million endowed scholarship program in China for students from around the world, and billed it as a rival to the prestigious Rhodes Scholarship.

Stephen A. Schwarzman, founder of the private equity firm Blackstone, said he would give $100 million as a personal gift and raise another $200 million to endow the Schwarzman Scholars program at Beijing's Tsinghua University. It will be the largest philanthropic gift with foreign money in China's history, according to the tycoon and the university.

The Wall Street mogul said China's rapid economic growth and rising global influence would define the 21st century, as U.S. ties to Europe did to the 20th century — when the Rhodes Scholarship was created at Oxford University with the goal of producing outstanding leaders.

"China is no longer an elective course, it's core curriculum," he said in Beijing.

By partnering with the prestigious Chinese university, Schwarzman said he hoped the educational program would train future world leaders and play a positive role in relations between China and the United States.

"For future geopolitical stability and global prosperity, we need to build a culture of greater trust and understanding between China, America and the rest of the world," he said.

Tsinghua — known for its engineering programs but in the midst of transforming itself to be more comprehensive in academic offerings — also has produced many of China's senior leaders, who have traditionally been technocrats. It is the alma mater for both President Xi Jinping and former President Hu Jintao.

The $300 million endowment will allow 200 students each year to take part in a one-year master's program at Tsinghua — all expenses paid — in public policy, economics and business, international relations or engineering, beginning in 2016. Schwarzman said 45 percent of the students would come from the United States, 20 percent from China and the rest from other parts of the world.

Already, $100 million has been raised in the last six months from private donors, Schwarzman said.

Both President Barack Obama and Chinese President Xi Jinping sent congratulatory letters, which were read out loud at the announcement ceremony at the Great Hall of People — China's symbolic heart of political power. "That was pretty remarkable to listen to," Schwarzman said. "That was pretty awesome."

Vice Premier Liu Yandong attended the announcement and gave a speech.

The announcement also was the top news on state-run China Central Television's evening newscast, which is typically reserved for the activities of China's top leaders.

The program's advisory board includes former world leaders such as France's Nicolas Sarkozy, Britain's Tony Blair, Canada's Brian Mulroney and Australia's Kevin Rudd. Former U.S. secretaries of state Henry Kissinger, Colin Powell and Condoleezza Rice are also on the board, as is renowned cellist Yo-yo Ma.

"The board shares my belief that fostering connections between Chinese students, American students and students from around the world is a critical aspect of ensuring geopolitical stability now, and into the future," Schwarzman said.

He said the program would be jointly governed by the Schwarzman Education Foundation and Tsinghua University on matters including curriculum and faculty.

Schwarzman said he believes the program will enjoy academic freedom like any other Western educational institute and that he understands no topic will be off limits in the classrooms at the Schwarzman College, home to the program, to be built on the Tsinghua campus.

Many international corporations already have signed on as donors to the program, including BP, Bank of America Merrill Lynch, Boeing, GE, JPMorgan Chase, Bloomberg Philanthropies, Caterpillar, Credit Suisse and Deloitte. International companies often give charitable gifts to cultivate ties with potential future leaders.

Tsinghua traces its roots to 1911, when the United States used the indemnity money paid by the Chinese government after an anti-foreigner rebellion to establish a preparatory school for students later sent to study in America.


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Tesla car manufacturer seeks Natick Mall sales

NATICK, Mass. — Tesla Motors is expected to ask Natick planners for an exception to zoning regulations to allow the manufacturer of upscale electric cars to sell at the Natick Mall.

The Boston Globe reports (http://bo.st/11rJGIR ) that the exception would allow Tesla to consolidate its operations in Natick that include a showroom at the mall where customers can view a car and get information and a sales office elsewhere that handles sales.

The California company wants to sell its cars directly to consumers rather than working through independent dealerships, the traditional sales model and required by law in Massachusetts and elsewhere in the United States.

A judge dismissed a lawsuit by the Massachusetts State Automobile Dealers Association, which tried to block Tesla's proposed mall site. The dealers group is suing the Natick Board of Selectmen.

___

Information from: The Boston Globe, http://www.boston.com/globe


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Report: Ex-HSBC man says US advised he go to Spain

MADRID — A man wanted by Switzerland on suspicion of stealing confidential banking information now being used by international financial investigators says U.S. officials warned him he was in danger and advised him to go to Spain, a newspaper reported Sunday.

Herve Falciani, a former employee of global banking group HSBC, was arrested in July after he left France by sea and tried to enter Spain through the northeastern port of Barcelona.

In December, Spain's National Court released him after authorities argued Falciani was cooperating with investigators from several European countries in probes into tax evasion, money-laundering and terrorism financing.

He is now fighting extradition to Switzerland, where he is accused of stealing information between 2006 and 2007 related to at least 24,000 customers with private accounts with the Swiss division of HSBC.

In a lengthy interview published in El Pais newspaper, the 40-year-old is quoted as saying that he was cooperating with U.S. Justice Department officials when he was told to head for Spain.

"They told me that from that moment my life was at risk," Falciani says. "They told me the only safe place in Europe was Spain."

The paper quotes Falciani as saying that American authorities advised him on what day to travel — July 1.

"They even knew which judge would be on duty when I arrived," he is quoted as saying.

The paper says Falciani used his finger in a side-to-side horizontal movement across his neck to reinforce the point that his life was in danger.

"The United States had warned me just before (his departure to Spain) that it would be easy for someone to pay to try to get me killed," Falciani was reported as saying.

U.S. officials did not immediately offer comment on the claims.

Falciani also is accused of breaching banking secrecy, including allegedly releasing a list of names of HSBC private customers to French officials in 2008, the year he fled Switzerland for France.

France's former finance minister, Christine Lagarde, now head of the International Monetary Fund, passed the list on to the U.S. and several European Union countries, thereby exposing many of the bank's clients to prosecution for tax evasion.

The documents have added more pressure on Switzerland from its European neighbors and the United States to crack down on tax evasion.

Falciani, who has French and Italian citizenship, could be sentenced to a seven-year jail term in Switzerland if extradited and convicted.

At an extradition hearing on April 15, Falciani said that he told Swiss authorities in 2008 about what he had discovered at HSBC Private Bank (Suisse) SA, but that they refused to let him make an anonymous complaint.


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