MIT, Ford: Road worries

Ford Motor Co. is collaborating with the high-powered brains at the Massachusetts Institute of Technology to help tackle some of the biggest future transportation problems they foresee, such as global gridlock.

"We want to try to solve the problems that matter," said MIT professor John Leonard. "We want the world to bring the problems to our doorstep so we can try to solve them."

Leornard is principal investigator for the Ford/MIT Alliance, which is now in its 15th year.

"MIT is clearly at the very top level," said Ed Krause, Ford's global manager for external alliances. "MIT does a great job blending theoretical research and practical research."

The transition to electric and hybrid vehicles isn't an issue, as far as the alliance is concerned. "We can sort of see our way to that solution," Krause said.

Instead, the alliance is primarily focusing on problems that have barely presented themselves, such as global gridlock.

Rooted in the idea that developing countries such as China and India will eventually be overrun with cars, Ford — surprisingly — is trying to find a solution.

"Increasing amounts of people and wealth are going to end up in these cities. How is that going to change how people move and how goods move?" Krause said. "If there's a huge traffic jam, how are you going to get ambulances somewhere?"

One way to help address the issue is by designing a new transportation system. MIT professor Cynthia Barnhart is working on a solution that "integrates vehicle-sharing and public transportation systems. The goal is to provide users with end-to-end transportation while helping to alleviate gridlock," Leonard said.

Global gridlock is an issue that Bill Ford, executive chairman of Ford, is especially passionate about. He has given a number of talks on global gridlock, including one at the high-profile TED Talks series, Krause and Leonard said.

Researchers from MIT have also worked on other projects, including making batteries more efficient and analyzing the business of selling cars to make it more efficient.

"They really run the gamut of all sorts of different things," Leonard said.

One added benefit is the research that comes from MIT has real-world use.

"Our alliance with Ford and other major companies give us this grounding in real-world and practical problems," Leonard said. "It's a way for our work to have impact."

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Nissan 370Z is 100% sports car

The 2013 Nissan 370Z Roadster Touring boasts outstanding sports car performance that is priced well under the German and Italian competition — an entry level 370Z is yours for under $45,000.

Our gorgeous test Z was dressed in a midnight blue metallic paint and capped with a black cloth droptop. Conspicuous red-painted brake calipers glared out from 19-inch Rays alloy wheels, which were part of a sport package that pushed the price of our tester up to $50,000.

While the price tag says entry level, the Z is 100 percent sports car. The Nissan's 3.7 liter V-6 engine produces 332 horsepower. The Z, which weighs in at 3,488 pounds, does 0 to 60 mph in 4.9 seconds. A 6-speed manual transmission was a blast to rip through, especially with the top down.

Driving the Z was all about performance. Our tester's firm suspension, bigger wheels and low ground clearance provided sharp handling. The Z felt fast even at low speeds as it was hard to hold back in stop and go situations. The Z's sport tuning was great for highway straightaways and twisty roads, but gave the coupe a harsh feel on bad pavement and bridge expansion joints. The Z also suffered from permeating road noise with the top up, which was a great excuse to keep it down.

Despite being only a two seater, I found plenty of leg room with the roadster's power adjustable seats. The leather and mesh cloth buckets were both heated and air conditioned, features that kept the convertible top down on cool nights and in hot weather. The coupe's interior featured a leather-wrapped steering wheel and stick shift. Aluminum-trimmed pedals also stood out. Storage space was limited, but I did find some space behind the seats for a bag or two of groceries.

Trunk space was sparse, barely enough room to fit a couple of overnight bags, but it does offer a diagram on how to fit a bag of golf clubs into the tight space.

The Z has an engaging dashboard with red dials and digital readouts constantly changing on six gauges.

While overwhelming at first, I found the additional controls on the steering wheel, combined with a compact media center and a full array of radio dials, simple to operate.

The Z is expensive when compared to the Subaru Scion coupe offerings, which are clearly out-muscled on the straightaways by the Nissan, but all match in handling. On the higher end, the Z's agility, muscle and abundance of modern technology really gives the $90,000 Porsche Boxter S a run for the money. 

Clearly the Z is not a long road tripper and it would be hard to justify as a daily driver, but who wouldn't love to haveone sitting in his garage for a midsummer night dinner reservation for two or for a fall foliage run.

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The Ticker

Dow has worst week

Stocks fell yesterday, closing out what was the worst week of the year for the Dow Jones industrial average.

The market was dragged lower by a weak performance from retailers and companies sensitive to higher interest rates. Homebuilders and banking stocks were among the best performers.

Stocks had a decent start to the week, but investors were hit hard the past three days. The Dow retreated 2.2 percent for the week, its worst in 2013. The broader Standard & Poor's 500 index lost 2.1 percent for the week, its second-worst performance of the year.

The possibility of a cutback in the Federal Reserve's bond-buying program in September has roiled the bond market, which has spilled over into stocks. The yield on the benchmark U.S. 10-year Treasury note rose to 2.83 percent, its highest level since July 2011.

Judge hurts Icahn bid for Dell

A Delaware judge yesterday dealt a blow to activist investor Carl Icahn's effort to stop CEO and founder Michael Dell's $24.8 billion buyout offer for the struggling computer maker.

He refused to fast-track proceedings on Icahn's claims that Dell Inc. directors have betrayed their duties to shareholders in trying to win support for Michael Dell's bid.

After three delays, Dell's board has scheduled a special shareholder vote on Sept. 12 for Michael Dell's offer of $13.75 per share, plus a 13-cent dividend. That's to be followed by an overdue annual meeting on Oct. 17.

Icahn, who is seeking to oust Michael Dell as CEO, wanted the vote and annual meeting to be held on the same day. That would give shareholders a chance to vote on a rival board he is offering as part of his proposal, a complex alternative plan that he says would be worth at least $15.50 per share.

Egypt violence sends oil higher

The price of oil rose for the sixth consecutive day yesterday on continuing violence in Egypt and supply disruptions elsewhere in the Middle East and North Africa.

U.S. benchmark crude edged up 13 cents to $107.46. It rose 1.4 percent for the week. Brent crude, which is used to price imported crude used by many U.S. refineries, rose 80 cents to $110.40 per barrel for October delivery.

The average retail price for a gallon of gasoline rose less than a penny to $3.54 per gallon. It is down 9 cents per gallon in August, however, and it is 17 cents lower than it was last year.

THE SHUFFLE

• Acella Construction Corp., a construction services company, announced that Dennis Tellier, left, has joined the firm as a project superintendent. Tellier will coordinate site construction activities and supervise field personnel to complete projects on time and within budget.
• Eastern Insurance Group LLC announced that Timothy J. Lodge has joined the agency as a senior vice president in its commercial lines division. Lodge will work out of Eastern Insurance's Providence, R.I., office as a sales executive focusing on the real estate, manufacturing and technology industries.

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Baker’s cooks up a problem

There's a meltdown in the baking aisle as consumers, angered at Baker's Chocolate shaving the size of its iconic bars, took their fudgy feud to Facebook.

Baker's Chocolate, which originated in Dorchester, halved its package from 8 ounces to 4 ounces in the spring, but the cocoa cacophony went viral this week when the pop culture site Buzzfeed harvested and posted the best barbs from Baker's Facebook page.

Cambridge resident Amy Todd, 47, was among those brought to the boiling point.

"The box has been the same size my entire life. I stood in the aisle thinking there is something strange about this. I really wondered if there had been a mistake. Why was the price so high?" Todd told the Herald about her Facebook rant.

Todd, an anthropology professor at UMass Boston, was prompted to post a complaint after paying $4.99 for a 4-ounce package at a local supermarket in May.

Kraft Foods, Baker's parent company, responded to a Herald inquiry with a statement. The size reduction was "consumer driven" and the "suggested retail price was lowered to $2.89," wrote a Kraft spokesman.

At Shaw's in Brighton, a 4-ounce box of Baker's Chocolate was priced at $3.29. Nearby at Stop & Shop, Baker's was selling for $3.19.

Excerpts from the vitriol on Baker's Facebook page included this from Sarah Carol Bing: "Another loyal customer lost. I have been making my great aunt's recipe using Baker's Chocolate for 25 years now. The original recipe, written in her own handwriting calls for an 8 oz package of 'Baker's Chocolate.'"

Another user, Shannon Harris, quipped, "Christmas is coming, and baking season. Too bad, I will be switching brand for all my zillion kitchen adventures." Tammy Borushko railed, "Wow! What a crappy way to treat your customers."

Edgar Dworsky, a Somerville-based consumer advocate, said a communication meltdown may be to blame.

"Did they cut the price in half? No, there's a bit of a premium. The product was cut in half content-wise but the price wasn't, but the price was definitely reduced," said Dworsky. Even if sold at Kraft's suggested retail price of $2.89, the chocolate is now 72 cents per ounce as compared to 62 cents.

But the damage has been done for Dorchester baker Chirelle Hitt. Hitt, 40, tackles the holiday baking for her family and is known for whipping up batches of chocolate crinkles for workmates.

"At this point, I'm so used to using the 8-ounce it feels like I'm cheated even if the prices are lower," said Hitt, a staff assistant at Harvard Medical School. "I'm already looking for different chocolate."

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Modern style lights up Southie home

This architect-­designed freestanding contemporary townhouse offers a mix of Manhattan and the South End in a traditional neighborhood on South Boston's East Side.

Designed by Boston architectural firm Touloukian Touloukian Inc., this three-­bedroom unit has an open, airy feel on its four levels of living space. Winner of a Boston Society of ­Architects design award, this stylish abode was added to the rear of an 1890s brick bowfront home, and features a custom full-wall maple built-in in the living/dining area, a high-end kitchen and lots of picture windows, skylights and a three-floor light shaft that bring in daylight. It's on the market for $825,000.

The house has a clapboard exterior and is topped with a decorative fin. A private ­entrance leads into a double-height foyer with a two-tier chandelier.

To the left is a ­recessed-lit open living/dining/kitchen area with high ceilings, maple floors and a large picture window. Along one full wall sits a custom maple built-in with bookshelves above, a granite shelf and cabinets below.

The dining area segues into a kitchen with custom maple cabinetry, granite counters and a full-wall granite backsplash with glass shelves. There's a granite-topped island with stainless-steel cabinets and stainless-steel appliances including a Bosch refrigerator and dishwasher and a Frigidaire four-burner gas stove.

Off the kitchen is a half bath with basket-weave Carrara marble floors and a pedestal sink.

The turning stair­cases to bedrooms on the second and third floors have metal and glass rails and there are corner windows at the top of the landings.

The second floor has an en-suite guest bedroom with maple floors and a bathroom with Carrara marble floors and lined shower. The bath also opens onto a third small bedroom, which is nursery-sized but with a large closet with built-in storage. Along the second-floor hallway is a closet with a stacked Bosch washer and dryer.

The townhouse's master bedroom suite takes up the entire third floor, which is crowned with a series of skylights and a light well that make it very sunny. There's a decent-sized bedroom with maple floors and a large picture window and the room steps down to a light-filled home office. The master suite has a large walk-in closet with built-in storage and frosted-glass wardrobe space. The master bathroom has a radiant heated marble floor as well as a marble-lined steam shower. There's also a lot of extra cabinet space along the outside wall of the bedroom.

The carpeted lower level of the unit has a family room/home ­office with built-in maple cabinets and a decent amount of storage space in an unfinished area behind. This area also houses a gas-fired two-zone heating and central air-conditioning system.

There is garage parking for this unit behind, along with one tandem outside space. But there is no green space in the backyard.

Broker: Colin Sullivan of Coldwell Banker Residential Brokerage at 617-529-6622

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’EEI assures duo after boss axed

WEEI morning men John Dennis and Gerry Callahan — blindsided by the firing of boss Jason Wolfe yesterday — said they have been assured that station suits want them to be "part of the solution" to the once-dominant sports station's ratings woes.

Callahan, a Herald sports columnist, said Entercom Boston general manager Jeff Brown told him and Kirk Minihane, who was added to the morning show in February, that "we're going nowhere." And Dennis, who is on vacation this week, said Brown called him after Wolfe got the ax to reiterate that the morning show was not in any danger.

"I take him at his word," Dennis said. "I'm not worried. I'm fine with what we've done so far, but almost everyone who gets into this business knows that at some point it will come to an end and whenever that day comes, I'll be fine with that too."

Wolfe, WEEI's vice president of programming and operations, who oversaw the station during years of Boston radio dominance, was shown the door yesterday, the victim of spiraling ratings and competition from 98.5 The Sports Hub, the upstart that stole much of the longtime sports-talker's audience.

Immediately, speculation began about the future of 'EEI's longtime morning drive duo, who were partnered and supported by Wolfe but whose ratings have slipped since the emergence of CBS-owned Sports Hub.

"That is everyone's first question," Brown told the Herald. "There's no fait accompli regarding Dennis and Callahan, no imminent shoe to drop on Dennis and Callahan."

But others speculated that the departure of Wolfe means the current morning show is on borrowed time.

"I think they have to do something," said one station insider, referencing the duo's dwindling numbers.

In the most recent ratings period, The Sports Hub's top-rated morning show, Toucher and Rich, dominated with a 13.4 share. Dennis and Callahan finished fifth with a 6.0. The Sports Hub was No. 1 overall with men age 25-54, both stations' target audience, while WEEI was fifth, according to Arbitron.

However, both Dennis and Callahan have a year remaining on their contracts and the station's move last February to dump longtime afternoon drive host Glenn Ordway didn't do anything to improve numbers.

There were reports yesterday that Brown's choice to replace Wolfe is Kevin Graham, program director at KFAN in Salt Lake City. Brown declined to discuss it other than to say he will make an announcement in the next couple of days.

Whoever succeeds Wolfe will have a major rebuilding project. All three of WEEI's daytime shows — morning drive, middays with Mike Mutnansky and Lou Merloni, and afternoon drive with Mike Salk and Michael Holley — lag behind The Sports Hub's shows.

Wolfe's successor will have to try to figure out how to increase listeners and decrease station costs — a tough act to pull off especially given the fact that WEEI is saddled with a whopping 10-year, $200 million contract to air Red Sox games that runs for three more years. The station also has the broadcast rights to the Celtics.

Brooming Ordway likely saved Entercom a bundle in salary costs and, at the time, former 'EEI announcer Pete Sheppard predicted that the station will cut even further, eliminating most local programming in favor of syndicated ESPN content. But Brown said he believes the 'EEI "ecosystem" is strong.

"At the end of the day we want to make it better," he said, "and we are going to work to make it better."

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Many left waiting for bombing insurance $$

Scores of insurance claims either have been closed without payment or remain open four months after the Boston Marathon bombings, leaving business owners and residents in limbo, according to the state Division of Insurance.

Of the 207 claims reported as of July 26, 84 claims were closed with a total of 
$1.17 million in payments, and 76 were closed without payment. The remaining 47 claims were still pending.

"We're still fighting for money," said Brett Fodiman, one of the owners of the Forum Bar and Restaurant. "No one's helped us out. We hired an adjuster to help us manage all our losses. If the city and state were involved, it might speed things up. But for now, this battle is still going on."

Sheila Dillon, director of the city's Department of Neighborhood Development, said the department registered more than 500 businesses in the affected area and asked them to name their insurance carriers. The department helped about 80 of those businesses with insurance issues, often using local attorneys donating their time.

"We asked (insurers) for a very high-level point person, flexibility and speed," Dillon said.

But for some businesses, payment has been elusive.

"We're still in talks; it's an ongoing thing," despite help from a lawyer the city provided, said Anthony Liquori, owner of Escape Salon, which was closed for nearly a week.

To date, the Division of Insurance has received four complaints — three from businesses and one from a Watertown resident, said Amie O'Hearn Breton, a division spokeswoman.

"All of them have been resolved favorably through the division's assistance," she said. "The division was able to recover additional monies for the affected consumers."

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The Ticker

Judge stalls ruling on airline bankruptcy

Lawyers for American Airlines pressed a judge yesterday to approve the company's plan to merge with US Airways and exit bankruptcy protection, but the judge delayed a ruling because of the federal government's lawsuit against the merger.

The U.S. Justice Department Tuesday filed a lawsuit against the merger, which it said would hurt competition and increase prices for consumers by leaving four airlines controlling more than 80 percent of the U.S. air-travel market.

Judge Sean Lane delayed a decision on the plan until at least Aug. 29.

Facebook tests mobile payment app

Facebook plans to test a mobile payment service that lets users make purchases inside mobile applications using payment information they have added to their account on the social network.

Facebook Inc. said yesterday that it is working on a "very small test" and the company said there is no set schedule for making the service available to users. The service would use payment information that shoppers store on Facebook to automatically complete checkout forms of certain mobile apps. Then the app would process the purchase.

Ford to cut hybrid mileage estimates

The U.S. government may change the rules for the gas mileage estimates that car buyers see on window stickers after finding that fuel economy figures for Ford's C-Max gas-electric hybrid were inflated.

The Environmental Protection Agency, which monitors mileage testing, said yesterday that it will cut the C-Max's combined city-highway mileage estimate by nearly 9 percent to 43 mpg, from 47. Ford Motor Co. will change its window stickers to reflect the correct estimate and said that it will compensate drivers for the difference.

C-Max buyers will get a $550 check, while those who leased will receive $325.

THE OUTLOOK

• Commerce Department releases housing starts for July.
• Labor Department releases second-quarter productivity data.

THE SHUFFLE

• J Barrett & Co. is announcing that Kate Chapman has joined the agency in its Beverly Cummings Center office. Chapman, who served in the military as a medic in Iraq and in personal security with a private firm, also has a strong background in finance and sales.
• Nixon Peabody LLP has hired Richard J. McCarthy as its new chief financial officer. McCarthy oversees the global firm's financial operations including legal project management, accounting, tax, financial planning, compliance and risk management.

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L'Oreal makes $843M bid for Chinese skincare brand

HONG KONG — French cosmetics giant L'Oreal is making an $843 million takeover offer for skincare company Magic Holdings to help it expand in China's fast-growing beauty market.

Magic Holdings International Ltd. is the "ideal fit" for L'Oreal SA's existing China business and the deal also gives Magic an "ideal partner" to expand into new markets, the companies said in a joint filing Thursday.

Magic is the market leader in the rapidly expanding product category of facial masks, with 26 percent market share last year, according to AC Nielsen data.

"Facial masks are one of China's beauty market's fastest growing areas with very promising development prospects," L'Oreal said in a statement. "L'Oreal intends to develop this Chinese brand by contributing its science based expertise."

Emerging markets such as China have become increasingly important for the French cosmetics maker, which is trying to counter stagnant growth in its traditional markets. Last year the Paris-based company made more money from "new markets," which include Asia, Latin America, the Middle East, Africa and Eastern Europe, than from North America or Western Europe.

China's economic growth has slowed from double-digit rates but remains much higher than developed economies.

Magic's sales rose 29 percent last year to $200 million.

The French company is offering 6.30 Hong Kong dollars (81 cents) for each Magic share. Magic's stock price soared 18 percent on the Hong Kong stock exchange to HK$5.98 on Friday.

Six key shareholders holding 62.3 percent of Magic are already supporting the deal, which needs approval from China's Ministry of Commerce.

L'Oreal has 3,500 staff, a research center and two factories in China.

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US builders broke ground on more homes in July

WASHINGTON — U.S. developers broke ground on homes at a faster pace in July. But the rise was all due to apartment construction, which is typically volatile. By contrast, builders began work on fewer single-family homes — the bulk of the market — and sought fewer permits to build them.

Friday's report from the Commerce Department suggests that home building is maintaining its recovery but might be starting to be restrained by higher mortgage rates.

Builders began work on houses and apartments at a seasonally adjusted annual rate of 896,000 in July, the department said. That was up 6 percent from June, though below a recent peak of more than 1 million in March. Construction began on 26 percent more apartments but declined 2.2 percent for single-family houses.

The dip in single-family starts comes after other measures of the housing market have flattened or declined. It may signal that higher loan rates have begun to weigh on housing, which has otherwise steadily recovered since earlier last year.

Mortgage applications by potential homebuyers have fallen 15 percent since the end of April. Signed contracts to buy homes slipped in June after reaching a six-year high in May.

The average rate on the 30-year loan was 4.4 percent this week — a full percentage point higher than in early May. Mortgage rates spiked in June after Chairman Ben Bernanke indicated that the Federal Reserve could slow its bond purchases later this year. The bond purchases have kept long-term interest rates low, encouraging more borrowing and spending.

"There's no doubt that rising rates have had an effect," said Dan Greenhaus, chief global strategist at BTIG, an institutional brokerage.

Some smaller homebuilders have said it's become more difficult for them to get loans to build. They also say that limited supplies of finished lots and a lack of skilled workers have become barriers to faster construction.

Last month, D.R. Horton Inc., the nation's largest homebuilder, said its sales pace declined in May, when rates began to move up.

Still, Greenhaus suggested that the effect on housing so far has been far less than what economists might have expected after a 1-point rise in the average 30-year fixed mortgage rate.

Others note that demand for new homes remains strong even as supply is tight. That trend has pushed up prices and should encourage more construction.

"Should we be concerned? Not yet," said Patrick Newport, a housing economist at IHS Global Insight. "There is just a big gap between supply and demand right now, and I think higher mortgage rates won't cancel that out."

Over the past 12 months, the home construction data still look strong: Builders broke ground on 15 percent more single-family homes in July than a year earlier. And including apartments, housing starts have surged 21 percent in the past year.

Applications for permits for future home construction also rose in July, though solely because of apartments. Permits rose 2.7 percent to 943,000, thanks to a 13.5 percent jump in apartment permits. Permits for single-family homes dipped 2 percent but are still near the five-year high reached in June.

Overall housing starts remain below the 1.5 million-a-year rate that's consistent with a healthy market.

Builders are more optimistic than at any time in nearly eight years, and Americans are buying new homes at the fastest pace in five years. Both trends should spur more construction.

A measure of homebuilder confidence rose for a fourth consecutive month in August to nearly an eight-year high. The National Association of Home Builders/Wells Fargo builder sentiment index, released Thursday, rose to 59 from 56 in July. That is the highest level since November 2005. A reading above 50 indicates that more builders view sales conditions as good rather than poor.

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

Despite the lift from housing, the economy has been sluggish this year. It expanded at just a 1.7 percent annual rate in the April-June quarter after a 1.1 percent annual rate in the first three months of the year.

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Karen Spilka flips tech tax vote

An Ashland state senator running for Congress is trying to lead the charge to repeal the so-called "tech tax" just weeks after she voted at least three times to support the measure — a flip-flop her rivals say is a conveniently timed attempt to score "political points."

State Sen. Karen Spilka (D-Ashland) joined fellow Democrats to slap a 6.25 percent tax on software sales and services last month as part of the Legislature's transportation bill. Spilka voted to enact the bill and at least twice voted against Republican-sponsored amendments to strip the tax from the bill.

But after weeks of pushback from the tech industry, Spilka yesterday filed a bill to repeal the tax, saying new information has surfaced since the vote.

"I've heard from a lot of tech businesses and a lot of people — more than I think we normally hear from," said Spilka. "There's a lot of information that has come to light about the tech tax and the potential impact. ... It's the opposite message we want to send the tech industry."

Asked if she still would have introduced the bill even if she weren't running for Congress, Spilka replied, "Absolutely," but also denied having any regrets for voting for the tax.

"No, I voted on the best information I had at the time," said Spilka. "There wasn't the human outcry that there is now."

Spilka, former chairwoman of the Joint Committee on Economic Development and Emerging Technologies, is squaring off against Democrats Peter Koutoujian, Carl M. Sciortino, William N. Brownsberger and Katherine M. Clark for the congressional seat vacated by U.S. Sen. Edward J. Markey.

"While others try to score political points off of this issue, I have said from day one that I preferred a reform of our tax code to make it more progressive for families and small businesses," said Sciortino in a statement.

But a spokesman for Brownsberger said, he, too, now supports a tech tax repeal and believes Spilka is right.

"It's not lost on me that she's a candidate for Congress and that we found out about her filing this bill in the media as opposed to an email to her colleagues," said House Minority Leader Brad Jones.

Critics of the tax accused lawmakers of not doing their homework.

"We were on a very dangerous path of tax-first, ask questions later," said Senate Minority Leader Bruce Tarr, whose two amendments Spilka voted against. "There was such a rush to increase taxes that a lot of time was not taken to fully consider this."

Michael Widmer of the Massachusetts Taxpayers Foundation said Spilka's position change reflects the epiphany other lawmakers are having on the tech tax.

"It's certainly striking that a tax of this enormity could be passed without having a greater scrutiny and understanding in advance," he said.

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'Call of Duty: Ghosts': 5 ways it's different

LOS ANGELES — "Call of Duty: Ghosts" is conjuring new ways to play online.

Female characters, interactive maps, canine sidekicks and a knuckle-biting intense mode dubbed "cranked" are among the new additions deploying to the multiplayer mode of the popular military first-person shooter franchise when "Ghosts" is released for both current and next-generation consoles Nov. 5.

"Call of Duty" publisher Activision Blizzard Inc. detailed the complex multiplayer mode, which includes 30 new weapons and more fluid movement, during a Wednesday showcase.

"I think the biggest difference is going to be the dynamic maps," said Eric Hirshberg, CEO of Activision Publishing, backstage at the event in downtown Los Angeles. "It really changes the game for the better. You not only have to learn how the maps are laid out and where the best hiding spots and vantage points are located, but you also have to figure out how they can be used for you or against you."

Here are five ways the online mode for this "Call of Duty" will be different from its predecessors:

GIRL POWER

For the first time in the 9-year history of "Call of Duty," multiplayer combatants can choose to portray a female soldier on the front line. It's one of 20,000 possible customization options when it comes to creating an online avatar in "Ghosts." Other personalization possibilities include selecting the race, body type, gear and clothing of virtual characters.

MAP QUEST

The battlefield won't always be stable in "Ghosts." The developers have added several interactive tricks that can dramatically alter the maps in the game's multiplayer mode. Some are as simple as a closed door with the ability to block access to a secret hideaway, while others are as explosive as a gas station that can obliterate nearby foes if ignited.

DIRTY DOG

Riley, the geared-up German shepherd who appears in the single-player campaign, will leap into the multiplayer mode as one of 20 new "killstreak" rewards earned when players take down the opposition and complete objectives. The canine companion will growl when enemies approach, scout out the battlefield and take out baddies who come too close.

CRANK AND FILE

There are seven new multiplayer modes coming to "Ghosts," including the cooperative "search and rescue" and "squad" installments, but the most intense new way to play "Call of Duty" online is called "cranked." For each kill, a player's reload and movement speeds are amped up, but if a 30-second countdown clock reaches zero, they spontaneously combust.

HEAR ME NOW

The developers have enhanced the game's sound effects with details that more closely resemble the real world. For example, gun shots fired in a large metal-filled warehouse sound different from those in a small carpeted room. The chatter during battle has also been fleshed out with teammates who call out when grenades go off or enemies appear near landmarks.

___

Online:

http://www.callofduty.com/ghosts

___

Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://www.twitter.com/derrikjlang .

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Fewest Americans since 2007 seek jobless benefits

WASHINGTON — The number of Americans seeking unemployment benefits dropped 15,000 last week to a seasonally adjusted 320,000, the fewest since October 2007 — a sign of dwindling layoffs and steady if modest job growth.

The Labor Department said Thursday that the less volatile four-week average fell 4,000 to 332,000, the fewest since November 2007 and the fifth straight decline.

Companies are laying off fewer workers, a trend that has lowered applications for unemployment benefits 14 percent this year. But hiring is still sluggish, resulting in only modest net job growth.

At the depth of the recession in March 2009, applications for unemployment benefits numbered 670,000. They have fallen steadily ever since.

"The underlying story in jobless claims is one of a continued improvement," Yelena Shulyatyeva, an economist at BNP Paribas, wrote in a note to clients. But "we need to see the pace of hiring pick up in order for payroll growth to accelerate from its current pace."

Nearly 4.6 million Americans received unemployment benefits in the week that ended July 27, the latest period for which data are available. That's about 66,000 more than in the previous week but nearly 20 percent less than a year ago.

The Labor Department says layoffs have averaged 1.6 million a month through June, fewer than the monthly average of nearly 1.8 million in the pre-recession year 2006.

Hiring hasn't recovered as quickly. Employers hired an average of 4.3 million people a month this year through June, well below the 2006 monthly average of 5.3 million. As a result, net job growth is still subpar.

Employers have added an average of 192,000 jobs a month this year. The unemployment rate has declined to 7.4 percent, a 4½ year low. That's still well above the 5 percent to 6 percent range associated with a normal economy.

A weak economy has given employers little reason to hire freely even if they've stopped cutting jobs. The economy grew at a sluggish 1.4 percent annual rate in the first half of the year, hobbled by tax increases, federal spending cuts and global economic weakness.

Many economists foresee growth accelerating in the second half of the year to an annual rate of roughly 2.5 percent. They expect consumer spending to pick up as the effects of the tax increases and spending cuts diminish. Improving home sales and higher stock prices are also expected to make people feel more confident about their finances and more willing to spend.

On Tuesday, the government reported that U.S. retail sales grew 0.2 percent in July from June despite a drop in auto sales. "Core" retail sales, which exclude the volatile auto, gas and building supply categories, rose 0.5 percent. That was the best gain since a similar increase in December.

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US manufacturing output slipped 0.1 pct. in July

WASHINGTON — Output at U.S. factories declined slightly in July, reflecting a drop in auto production. The decline was expected to be temporary given the banner sales year automakers are having.

Manufacturing output edged down 0.1 percent in July compared with June, the Federal Reserve reported Thursday. It was the first drop since declines in March and April.

July's weakness reflected a 1.7 percent fall in the output of motor vehicles and parts. That decline should be reversed in coming months as automakers ramp up production for the new model year.

Overall industrial production, which includes factories, mines and utilities, was flat in July after a 0.2 percent rise in June. A sharp 2.1 percent surge in mining was offset by a 2.1 percent drop in utility output.

Output in manufacturing, the most critical component of industrial production, is up a modest 1.3 percent from the level of a year ago. Economists say manufacturing may have begun to emerge from a weak patch earlier this year.

For July, the output of construction supplies and defense and space equipment showed gains. But production of business equipment was unchanged, and the output of information processing equipment fell.

The 1.7 percent decline at auto factories was the biggest drop since a 2.6 percent decline in January. Without the big fall in auto and parts production, manufacturing output would have been unchanged in July.

The Fed report was weaker than an earlier report from the Institute for Supply Management. That report showed that U.S. factories hired more workers and received a surge of new orders in July. That activity had helped push the ISM manufacturing index to a reading of 55.4 in July, the highest point in two years and up from 50.9 in June. A reading above 50 indicates growth in manufacturing.

Stronger growth at U.S. factories could aid a sluggish economy that has turned lackluster over the past three quarters. The economy barely grew at an annual rate of 0.1 percent in the fourth quarter of last year and improved only modestly to annual rates of 1.1 percent in the January-March quarter and 1.7 percent in the April-June quarter.

Economists predict a stronger annual growth rate of around 2.5 percent in the second half of this year. They expect steady job gains, rising home sales and a brightening picture for Europe and other export markets to boost activity.

The unemployment rate fell to a 4½-year low of 7.4 percent in July from 7.6 percent in June. Employers added 162,000 jobs. The labor market has averaged monthly gains of 192,000 so far this year.

Steady increases in new-home sales and construction are supporting growth in industries such as wood products, furniture and electrical appliances. And healthy auto sales are boosting growth at auto plants and related industries such as metal parts and components.

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Longtime WEEI program director dumped amid ratings plunge

Jason Wolfe, WEEI's vice president of programming and operations, who oversaw the station during years of Boston radio dominance, was shown the door yesterday, the victim of spiraling ratings and competition from an upstart 98.5 TheSports Hub that stole much of the longtime sports-talker's audience.

"I'm disappointed," Wolfe, a 22-year WEEI veteran, told the Track. "But this does nothing to take away the success that we have had. I don't think it's a stretch to say that the run that we had was one of the great runs any station of any format in any market ever had and it was a privilege and great honor to be a part of that."

He was called into boss Jeff Brown's office last week and "it was decided that today would be my last day," Wolfe said.

"The company has to do what the company has to do in order to protect its interests and build going forward," Wolfe said. "I'm looking at this as a new day and a chance to move forward to bigger and better things."

Wolfe's ouster comes six months after station suits broomed his longtime afternoon drive host Glenn Ordway, also a victim of the station's ratings struggles.

Brown, general manager of Entercom's Boston stations which include WRKO and WAAF in addition to 'EEI, said he has "the utmost respect for (Wolfe) and everything he has done" but ultimately decided it was time for "new ideas, new collaborations and a fresh take."

He said he will name a successor to Wolfe "in the coming days" and that the new program director's mission will be to "maximize the performance of everyone on the team."

Questions immediately were raised about the future of the station's longtime morning drive duo, John Dennis and Gerry Callahan, who were championed by Wolfe but whose ratings have slipped since the emergence of CBS'-owned 98.5 The Sports Hub.

"That is everyone's first question," Brown said. "There's no fait accompli regarding Dennis and Callahan, no imminent shoe to drop on Dennis and Callahan."

In February, Kevin Winter — brought on to the struggling "Dennis and Callahan Morning Show" — "stepped down" just months after joining the station.

WEEI has struggled ever since The Sports Hub launched in 2009. Two years ago, the station shifted long-time mid-day host Dale Arnold from his slot. More recently, the signal was switched. recently switching its signal to 93.7 FM.

Brown said he believe's WEEI's "ecosystem" is powerful, with presence on both the AM and FM dial, Red Sox broadcast rights and a website that draws "1.5 million uniques every month."

However, he said, "at the end of the day we want to make it better and we are going to work to make it better."

As for Wolfe, he said he has not given the future "a ton of thought yet."

"I know there are lots of opportunities out there and I am looking forward to investigating all of them in the days and weeks to come," he said. "I'm not in any rush, frankly. I'm looking forward to hanging with my family and kids, who I hardly ever get to see. That's one nice perk as we close out the summer."

DEVELOPING...

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Greece beats budget targets so far this year

ATHENS, Greece — Greece is beating its budget targets by a wide margin so far this year, a sign its painful cost cuts and tax increases, combined with international aid, are paying off.

The economy, however, remains deep in recession and unemployment at a record high.

Deputy Finance Minister Christos Staikouras said Monday that preliminary figures show the state budget had a primary surplus — which excludes interest payments on debt — of 2.6 billion ($3.5 billion) euros for the January-July period.

That is a far better result than its target of a 3.1 billion euro ($4.2 billion) deficit, and marks the first time the government has logged a significant primary surplus.

The actual deficit, including interest payments, came in at 1.9 billion euros, also better than the targeted 7.5 billion euros deficit, the finance ministry's figures showed. In the same period last year, the country posted a 13.2 billion-euro deficit.

The deficit now stands at 1 percent of gross domestic product, from 6.8 percent in the same period last year, Staikouras said.

Greece has depended on international rescue loans since 2010. In return, it has pledged to overhaul its economy, and has imposed repeated waves of austerity measures. It has reduced spending across the board, including cuts to state salaries and pensions, and increased taxes.

The improvements in the budget this year were achieved by a combination of cutting spending and increased revenues in some taxes.

It was also helped by a one-off payment of about 1.5 billion euros from other European central banks. The money came from Greek government bonds that the European Central Bank had bought earlier during the financial crisis. Rather than keep the money accrued on the bonds, the ECB handed it down to the 17 national central banks in the eurozone, who in turn gave it to the Greek government.

Despite the improvements, however, the economy remains mired in the sixth year of a deep recession that has seen Greece's economy shrink by about a quarter. Figures released by the statistical authority Monday show economic output shrank by 4.6 percent in the second quarter of 2013, compared with the same three months last year. The figures were not seasonally adjusted.

Unemployment is also painfully high, at a record 27.6 percent as of May. Almost two-thirds of young people without a job.

Separately, the country also completed the sale of a 33 percent stake in its gambling monopoly, OPAP, to a Czech-Greek investment fund, Emma Delta. The sale is part of an ambitious but long delayed privatization program that is part of the country's bailout conditions.

Greece sold the stake in OPAP for 654 million euros ($874.59 million), the country's asset development fund said in an announcement.

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Rights group: Angola must drop journalist charges

JOHANNESBURG — A rights group on Monday called on Angola to drop criminal defamation charges against an investigative journalist who wrote a book on human rights abuses in Angola's diamond-rich region.

Rafael Marques de Morais attended a hearing on July 31 for 10 new lawsuits that were brought against him, along with one pre-existing suit, Human Rights Watch said. The lawsuits revolve around a book that alleges Angolan generals own a diamond company and a security firm that carried out killings and the torture of workers toiling in the southern African nation's mines.

Marques is one of Angola's most prominent investigative journalists, who has also exposed corruption cases and human rights violations through his blog, the group said. Several high-ranking Angolan generals brought the suit against Marques. The journalist had filed a criminal complaint against the plaintiffs in 2011, which were shelved.

The rights group called on Angola to repeal its criminal defamation laws, which are the basis for the charges against Marques. Neither Marques nor his lawyer were allowed to review the materials related to the lawsuits, Human Rights Watch said.

"Angola has found its criminal defamation laws very useful to try to squelch reports about corruption and human rights violations," said Human Rights Watch deputy Africa director Leslie Lefkow. "Angola should be investigating these reports of serious human rights violations instead of trying to silence the bearers of bad news."

A number of journalists have been prosecuted in recent years by senior government officials for defamation, which is a criminal offense in Angola, the group said.

Marques was sentenced to six months in prison and payment of damages after being convicted of defaming President Jose Eduardo Dos Santos in 2002. The U.N. Human Rights Committee ordered Angola in 2005 to pay damages to Marques for wrongful conviction, though the government has yet to carry out those orders, Human Rights Watch said.

In February, Portuguese prosecutors threw out a libel suit brought by nine Angolan generals against Marques. His book, "Blood Diamonds: Corruption and Torture in Angola," was published in Portugal, Angola's former colonial ruler.

The Lisbon Attorney General's office issued a ruling that said it decided the book falls within the scope of legitimate use of a legal right — freedom of expression and information — which is constitutionally guaranteed.

Angola's government is accused of corruption and mismanagement of the country's oil and diamond riches.

The country was a Cold War battlefield for 27 years, with Cuban soldiers and Soviet money supporting dos Santos' government and apartheid South Africa and the United States backing UNITA. Half a million people died in the war, and more than 4 million — a third of the population — were displaced and much infrastructure was destroyed.

Since the war ended in 2002, Angola has dominated the list of the world's fastest growing economies and is sub-Saharan Africa's second-largest oil producer, after Nigeria. Oil-backed credit lines from China — Angola is China's No. 1 oil supplier and its second biggest importer is the United States — have fueled a building boom of houses, hospitals, schools, roads and bridges.

But 87 percent of urban Angolans live in shanty towns, often with no access to clean water, according to UNICEF, and more than a third of Angolans live below the poverty line. Meanwhile, human rights activists accuse government and military officials of looting their country's oil and diamond wealth.

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Campbell negotiating to sell European business

NEW YORK — Campbell Soup says it's in final negotiations to sell its European business to private equity firm CVC Capital Partners for an undisclosed sum, the latest move by CEO Denise Morrison to reshape the company.

The proposed sale includes the company's soups, sauces and other products that are sold under a variety of names in Belgium, Finland, France, Germany and Sweden. The deal, which is not yet final, doesn't include products in the United Kingdom, Ireland, the Middle East or Africa, or the export of its Pepperidge Farm baked goods.

The announcement is just the latest structural change for the soup maker since Morrison took over two years ago. Morrison has vowed to right the company's struggling canned soup business in the U.S. and has been moving to diversify with the type of fresher products that are growing in popularity.

Campbell Soup Co. recently purchased Bolthouse Farms, which makes premium juices, salad dressings and baby carrots, as well as Plum Organics, which makes food for babies and kids.

The company noted that the proposed sale of the European brands, which includes four plants, is subject to regulatory approvals.

"It's not a definitive agreement, therefore we can't provide any more detail," said Carla Burigatto, a Campbell representative. She did not immediately know whether any of the company's namesake products are sold in the countries named in the deal.

Campbell, based in Camden, N.J., says the brands included in the deal generate annual sales of $530 million. That represents about 7 percent of the company's net sales last year. Among the brands being sold are Devos Lemmens and Royco in Belgium, Liebig and Royco in France, Erasco in Germany and Bia Band in Sweden.

Campbell's European business is based in Belgium and employs around 1,300 people, according to CVC Capital.

Campbell said deal would be expected to close in the first quarter of its fiscal 2014.

Its stock was down almost 1 percent at $47.35. Shares are up almost 39 percent over the past year.

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CEO to take Dole Food private in $1.21B deal

WESTLAKE VILLAGE, Calif. — Dole Food said Monday its CEO will take it private, in a deal that values the company at approximately $1.21 billion.

Dole shareholders will receive $13.50 per share, a 5 percent premium to its $12.81 Friday closing price. This is a sweetened bid for the fresh fruits and vegetable business, up from the $12 per share Chairman and CEO David Murdock offered in June.

Dole currently has about 89.9 million outstanding shares, according to FactSet.

The company put the transaction's total value at about $1.6 billion, which includes debt.

Dole Food Company Inc.'s stock jumped 64 cents, or 5 percent, to $13.45 in morning trading. The shares have traded in a 52-week range of $9.25 to $15.19.

Dole has gone through a number of major changes recently.

It sold its packaged foods and Asia fresh business for $1.69 billion in a deal that closed in April. That allowed Dole to become solely an international commodity produce company, with a narrower focus that also makes its earnings more volatile.

In May, Dole said it would indefinitely suspend its $200 million share repurchase program and use its cash instead to update its shipping fleet to enhance growth prospects. The company said that another factor in the suspension of the repurchase plan was the drag on earnings, due to recent losses in its strawberry business.

The acquisition will be financed with cash and equity from Murdock and financing committed by Deutsche Bank, Bank of America and The Bank of Nova Scotia.

Dole's board unanimously approved the offer, which still needs the approval of at least a majority of outstanding shares held by stockholders other than Murdock and his affiliates. Murdock abstained from the board vote.

Dole, which is based in Westlake Village, Calif., will have a 30-day go-shop period in which it can actively seek out alternative bids from other parties.

The deal is expected to close in the fourth quarter.

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Slower Japanese growth weighs on markets

LONDON — Weaker-than-expected economic growth in Japan weighed on markets Monday on what is a fairly light day on the global economic calendar.

The main indicator of the day was the 2.6 percent annualized second-quarter growth rate recorded in Japan, the world's third-largest economy. The number was below the 3.8 percent rate recorded in the first quarter and the 3.6 percent predicted by analysts and dented sentiment around the world.

Investors are concerned that the big monetary stimulus that is being pursued by the government may not be reaping the rewards hoped for. Japan is trying to come out of a two-decade economic stagnation. The Nikkei 225 index slid back following the news, to end the day 0.7 percent lower at 13,519.43, while the yen fell. The dollar was up 0.5 percent at 96.72 yen.

The slower growth could make it difficult for Prime Minister Shinzo Abe to carry out plans to raise the sales tax by 3 percentage points in April to improve public finances. The tax is now 5 percent.

"Raising the consumption tax is key to long-term fiscal consolidation in Japan," said Lee Hardman, an analyst at Bank of Tokyo-Mitsubishi UFJ. He said that if Abe doesn't raise the tax as planned, he "would risk undermining foreign investor confidence" in his policies.

Following the Japanese news, stock markets in Europe and the U.S. were lackluster amid a dearth of economic data.

Britain's FTSE 100 shed 0.2 percent to 6,573 while Germany's DAX rose 0.1 percent to 8,351. The CAC-40 in France was 0.2 percent lower at 4,067.

In the U.S., the Dow Jones industrial average was down 0.1 percent at 15,358 while the broader S&P 500 index fell 0.1 percent to 1,685.

Last week, U.S. stocks suffered their worst week since June amid worries over when the U.S. Federal Reserve will start to reduce its monetary stimulus. Recent comments from a raft of Fed officials have indicated that it may start as soon as September.

This week's U.S. economic data, including retail sales figures for July, will be assessed in the context of when the Fed will begin the so-called tapering.

Michael Hewson, senior market analyst at CMC Markets, said it seems investors are becoming concerned about the Fed's timing and reluctant to push stock indexes any higher.

"Given the proximity to all-time highs it appears that prudence is taking precedence over risk, with little in the way of new factors to stimulate new buying," he added.

In Europe, the main point of interest will be Wednesday's second-quarter economic growth figures for the 17-country eurozone. Most analysts think that the region will post modest growth, which will mean it emerged from recession.

Earlier in Asia, a possible upswing in China's economy helped boost stocks in Hong Kong and on mainland China.

Data released Friday showed a 9.7 percent rise in China's industrial production for July. Some other indicators such as auto sales also showed improvement. Analysts said the figures added weight to the argument that the recent soft patch in the world's second-largest economy may have come to an end.

Hong Kong's Hang Seng jumped 2.1 percent to 22,271.28. The Shanghai Composite Index rose 2.4 percent to 2,101.28. The smaller Shenzhen Composite Index rose 1.3 percent to 1,009.13.

Elsewhere, the euro was 0.3 percent lower at $1.3289 while a barrel of benchmark New York crude oil was 23 cents lower at $105.74.

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Report: Bundesbank sees new Greece bailout in 2014

BERLIN — German news weekly Der Spiegel reports that the country's central bank believes international creditors will have to agree a new bailout for Greece by early next year.

The move would come months after Germany's Sept. 22 general election. Chancellor Angela Merkel's conservative government has been at pains to appear firm on Greece's international bailout, which is unpopular with many Germans.

Der Spiegel reports Sunday that the Bundesbank told Germany's Finance Ministry and the International Monetary Fund that a recent 5.7 billion euros ($7.62 billion) payment to Greece was approved "due to political constraints."

The central bank reportedly also described the risks of the current rescue program for Athens as "unusually high" and the performance of the Greek government as "hardly satisfying."

A Bundesbank spokeswoman declined to comment on the report.

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Retailers keeping tabs on consumers' return habits

WASHINGTON — It's not just the government that might be keeping tabs on you. Many retailers are tracking you, too — or at least your merchandise returns.

The companies say it's all in the name of security and fighting fraud. They want to be able to identify chronic returners or gangs of thieves trying to make off with high-end products that are returned later for store credit.

Consumer advocates are raising transparency issues about the practice of having companies collect information on consumes and create "return profiles" of customers at big-name retailers such as Best Buy, J.C. Penney, Victoria's Secret, Home Depot and Nike.

They say consumers should know upfront when they buy an item that they may later have their returns tracked if they bring back the merchandise.

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Rhode Island lawmakers seek answers on 38 Studios

PROVIDENCE, R.I. — It's taken more than a year, but Rhode Island lawmakers are trying to find out what led up to the state's costly gamble on Curt Schilling's now-defunct video game company, sifting through thousands of documents in hopes of learning how to avoid similar debacles.

The House Oversight Committee began its review last week of some 15,000 pages from emails, letters, meeting records and other documents relating to the state Economic Development Corp.'s $75 million loan guarantee awarded to 38 Studios. The committee is now considering whether to ask key figures involved in the deal to testify — with the option of subpoenaing any individuals who say no.

Questions about the state's involvement in 38 Studios continue to reverberate around the Statehouse about the company's decision to file for bankruptcy, making the state responsible for $90 million in outstanding debt. The EDC is now suing Schilling, former EDC Deputy Director Michael Saul, former EDC Executive Director Keith Stokes and others involved in the deal, alleging they withheld information about 38 Studios' finances from the board and gave it false information.

For lawmakers and other individuals still upset about the bad investment, several questions loom: Did top lawmakers support legislation creating the loan guarantee program knowing 38 Studios would be the largest beneficiary? Did officials at the EDC know that 38 Studios would need additional money to succeed? Did the EDC board, former Gov. Donald Carcieri and top lawmakers do their homework on 38 Studios before pushing for the state's investment?

Lawmakers approved the $125 million loan guarantee program in 2010, but rank-and-file lawmakers have said they weren't told that 38 Studios was involved. Yet documents released as part of the oversight process show clearly that efforts to help 38 Studios were behind the proposed loan guarantee program.

In the minutes from an EDC executive session in June 2010, an EDC attorney briefed the board on the loan guarantee program legislation, which was then pending in the General Assembly. The attorney said, "The legislature is aware of the Schilling matter and has done some due diligence in its consideration of this program," according to the minutes.

In a letter to Neil Steinberg, president of the Rhode Island Foundation, Stokes wrote that 38 Studios was a "catalyst for the $125 million Job Creation Guaranty Program. Without the tangible prospect of a company like this coming to Rhode Island, the opportunity to create the program would likely not have materialized."

The documents led state Rep. Karen MacBeth to accuse legislative leaders of misleading her and other lawmakers.

"We're taking votes based on untruths or lies," said MacBeth, D-Cumberland. "These documents absolutely show without a doubt that the key players here did know about it."

House Speaker Gordon Fox has said he knew of efforts to lure 38 Studios to Rhode Island, but the loan guarantee program was a separate discussion. His spokesman Larry Berman said the EDC — not top lawmakers — was behind efforts to pass the loan guarantee legislation to aid 38 Studios.

"The legislature was aware of the Schilling matter — at least some of the members were," Berman said. "We created the program that would provide the funding, but whether 38 Studios qualified for that funding, that was left up to the EDC."

The oversight committee could invite former executives from 38 Studios or former EDC officials to testify at the committee. But committee chairman Michael Marcello, D-Scituate, said it's unlikely those individuals would want to speak in light of the pending litigation.

"If I were their lawyer, I would tell them not to testify," he said.

The committee could vote subpoena witnesses, but the subpoenas would require Fox's approval.

Sen. Dawson Hodgson, R-North Kingstown, said it's vital that the committee attempt to ask questions of the individuals involved. Hodgson called for a special investigative committee to look into the 38 Studios episode, but his proposal failed in the General Assembly.

"I'm glad we're seeing some kind of serious post-mortem of 38 Studios, but no real oversight will be complete without calling in the principal actors," he said.

Schilling, the former EDC officials and former executives at 38 Studios are seeking to dismiss the EDC's lawsuit. Messages were left with several individuals involved in the deal. Stokes declined to comment, citing the lawsuit.

Critics of the oversight process note that it comes more than a year after 38 Studios filed for bankruptcy. They also question whether the committee will look closely at questions about the General Assembly's own role in passing the loan program that benefited 38 Studios.

"I don't think many people in the state buy the idea that they didn't know," said Randall Rose, who as a member of the group Occupy Providence has called on the state to default on the 38 Studios debt. "This may be an effort to run out the clock."

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Home-mortgage interest deduction may be in danger

WASHINGTON — Since Congress has taken off on its annual summer recess, you might assume that nothing is happening on Capitol Hill that could affect the taxes you pay on your home. Quite the reverse.

Members of Congressional tax-writing committees are putting together legislative drafts that may determine the fate of real estate's most prized tax benefits: first and second home-mortgage interest deductions, property tax write-offs, capital gains exclusions and others.

Committee chairs have promised major tax reform proposals. They've been evaluating deductions, credits and loopholes in terms of revenue costs and economic benefits, including the more than $70 billion yearly expense of the mortgage interest writeoff. The process represents the most serious effort to simplify and reorganize federal tax law since the Tax Reform Act of 1986.

On the Senate side, Finance Committee Chairman Max Baucus (D-Mont.) asked colleagues in both parties to submit recommendations on which tax preferences should be preserved, starting from a "blank slate" where all current benefits are eliminated. To provide senators political cover and deniability, the committee put all recommendations under a 50-year top-secret classification, and restricted access to them to just 10 staff members.

On the House side, Ways and Means Committee Chairman Dave Camp (R-Mich.) instructed staff to move ahead with drafts during the recess, allowing the committee to consider a final tax reform bill in October. That would tee up the legislation for a possible full House floor vote.

So what's really on the chopping block? Is there a possibility that as part of a comprehensive tax reform bill, preferences for home ownership could be reduced or phased out?

Here's a quick overview: The House bill under construction seeks to reduce individual and corporate marginal tax rates across the board. Camp has said he wants to clear out deductions, exclusions and other longtime tax code subsidies enough to lower individual taxes to a top marginal rate of 25 percent, down from the current 39.6 percent. He also wants to eliminate the alternative minimum tax and slash corporate tax rates.

The problem, though, is that lowering tax rates to these levels would cost trillions of dollars in lost revenues over the coming decade and would only be partially paid for by eliminating or cutting the vast majority of current tax preferences, including for homeowners. Lowering the top marginal rate for individuals to 28 percent — instead of the proposed 25 percent — would help, some analysts say, but still might not close the lost-revenue gap.

Another complication: Major tax benefits that have been in existence for decades, such as the mortgage interest and property tax deductions, are so welded into the system that eliminating them, or sharply reducing them, would shock the national economy.

The Tax Foundation, a Washington-based think tank that describes itself as nonpartisan, released a study at the end of July projecting that an elimination of the mortgage interest write-off would cut the gross domestic product (GDP) by $254 billion based on incomes in 2012, and would result in the loss of 659,000 jobs. In a separate study, the Tax Foundation projected that elimination of homeowner property tax deductions would lower GDP by $94 billion and trigger the loss of 216,000 jobs.

Findings such as these lead housing proponents to believe that neither the House nor the Senate bill can afford to make drastic reductions to long-standing homeowner tax benefits.

Other industry analysts aren't so sure. Not only did a panel of prominent economists slam the housing write-offs as inefficient and heavily tilted to benefit higher-income taxpayers, but Camp's own make-or-break income tax cut targets could take precedence over retaining current deductions.

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Lobstermen union meets for 1st time

BANGOR, Maine — Lobstermen who want to form a union to lobby for them in Augusta and to negotiate prices for their catch are meeting for the first time.

Fishermen who are forming the Maine Lobstering Union are gathering Sunday in Bangor at the Ramada Inn. Opening remarks will be open to the public, then the meeting will be closed to begin the process of nominating officers and beginning a process for nominating officers.

The International Association of Machinists and Aerospace Workers has been recruiting fishermen fed up with low prices for their catch and growing expenses.

The Maine Lobstermen's Association, a trade group with about 1,200 members, has questioned whether negotiating lobster prices would run afoul of federal antitrust laws.

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