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Obama's boldest move on carbon comes with perils

Written By Unknown on Sabtu, 31 Mei 2014 | 22.27

WASHINGTON — The new pollution rule the Obama administration announces Monday will be a cornerstone of President Barack Obama's environmental legacy and arguably the most significant U.S. environmental regulation in decades.

But it's not one the White House wanted.

As with other issues, the regulation to limit the pollution blamed for global warming from power plants is a compromise for Obama, who again finds himself caught between his aspirations and what is politically and legally possible.

It will provoke a messy and drawn-out fight with states and companies that produce electricity, and may not be settled until the eve of the next presidential election in 2016, or beyond.

"It's going to be like eating spaghetti with a spoon. It can be done, but it's going to be messy and slow," said Michael Gerrard, director of the Center for Climate Change Law at Columbia University.

At the crux of the problem is Obama's use of a 30-year-old law that was not intended to regulate the gases blamed for global warming. Obama was forced to rely on the Clean Air Act after he tried and failed to get Congress to pass a new law during his first term. When the Republicans took over the House, the goal became impossible.

The new rule, as the president described it in a news conference in 2010, is another way of "skinning the cat" on climate change.

"For anybody who cares about this issue, this is it," Heather Zichal, Obama's former energy and climate adviser, said in an interview with The Associated Press. "This is all the president has in his toolbox."

The rule will tap executive powers to tackle the single largest source of the pollution blamed for heating the planet: carbon dioxide emitted from power plants. They produce about 40 percent of the electricity in the nation and about one-third of the carbon pollution that makes the U.S. the second largest emitter of greenhouse gases.

"There are no national limits to the amount of carbon pollution that existing plants can pump into the air we breathe. None," Obama said Saturday in his weekly radio and Internet address.

"We limit the amount of toxic chemicals like mercury, sulfur, and arsenic that power plants put in our air and water. But they can dump unlimited amounts of carbon pollution into the air. It's not smart, it's not safe, and it doesn't make sense," he said.

While Obama has made major reductions in carbon pollution from cars and trucks by increasing fuel efficiency, manufacturers cooperated after an $85 billion government bailout.

His rule requiring new power plants to capture some of their carbon dioxide and bury it underground, while significant, has little real-world impact because few new coal plants are expected to be built due to market conditions.

Both those rules also prescribed technological fixes or equipment to be placed on the automobile or power plant.

The rule released Monday, though, would allow states to require power plants to make changes such as switching from coal to natural gas or enact other programs to reduce demand for electricity and produce more energy from renewable sources.

They also can set up pollution-trading markets as 10 other states already have done to offer more flexibility in how plants cut emissions. Plans from states won't be due until 2016, but the rule will become final a year before.

That hasn't stopped the hoopla over the proposal.

Some Democrats worried about re-elections have asked the White House, along with Republicans, to double the length of the rule-making comment period, until after this November's elections.

The Chamber of Commerce said the rule would cost $50 billion to the economy and kill jobs. Harvard University said the regulation wouldn't just reduce carbon but also would have a beneficial side effect: cleansing the air of other pollutants.

Environmental groups, meanwhile, are taking credit for helping shape it and arguing it would create jobs, not eliminate them.

Rep. Nick Rahall, a Democrat from West Virginia, which gets 96 percent of its power from coal, said Thursday that while he didn't have the details, "from everything we know we can be sure of this: It will be bad for jobs." Rahall faces a difficult re-election in November.

Obama said such pessimistic views are wrong.

"Now, special interests and their allies in Congress will claim that these guidelines will kill jobs and crush the economy," Obama said in his address. "Let's face it, that's what they always say."

Environmental Protection Agency Administrator Gina McCarthy and other government officials have promoted the proposal's flexibility as way to both cut emissions and ensure affordable electricity. But that flexibility could backfire.

Some states, particularly those heavily reliant on fossil fuels, could resist taking action, leading the federal government to take over the program. That happened in Texas when it initially refused to issue greenhouse gas permits through another air pollution program.

Lawyers for states and industry also are likely to argue that controls far afield of the power plant violate the law's intent.

The rule probably would push utilities to rely more on natural gas because coal emits about twice as much carbon dioxide. The recent oil and gas drilling boom in the U.S. has helped lower natural gas prices and, by extension, electricity prices. But it still generally is cheaper to generate power with coal than with natural gas. Also, natural gas prices are volatile and can lead to fluctuations in power prices.

The rule will push the U.S. closer to the 17 percent reduction by 2020 it promised other countries at the start of Obama's presidency, it will fall far short of the global reductions scientists say are needed to stabilize the planet's temperature. That's because U.S. fossil-fueled power plants account for 6 percent of global carbon dioxide emissions.

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Follow Dina Cappiello's environment coverage on Twitter at http://www.twitter.com/dinacappiello


22.27 | 0 komentar | Read More

Mass. Gov. Patrick heading to United Arab Emirates

BOSTON — Massachusetts Gov. Deval is setting off on the second leg of his latest trade mission, heading from Israel to the United Arab Emirates.

On Monday, Patrick is scheduled to meet with the Mubadala Development Company, an investment and development firm in Abu Dhabi, to discuss increased economic opportunities between Massachusetts and the emirate.

Patrick is also set to meet with representatives of the United Arab Emirates Ministry of Economy and visit the Masdar Institute of Science and Technology, a university which studies issues related to sustainability.

Patrick will also meet with U.S. Ambassador to the UAE Michael Corbin on Monday.

Patrick has said the goal of the nine-day trip is to expand opportunities for economic development and job creation in the innovation economy.

Since taking office, Patrick has led trade missions to 13 countries.


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New drugs may make a dent in lung, ovarian cancer

CHICAGO — For the first time in a decade, an experimental drug has extended the life of patients with advanced lung cancer who relapsed after standard chemotherapy.

But the benefit in the study was so small — six extra weeks, on average — that it is raising fresh questions about the value of some costly new cancer medicines.

Eli Lilly and Co.'s drug Cyramza (sih-RAM-zuh) was tested in more than 1,200 patients. It is sold now for stomach cancer and costs $6,000 per infusion.

The study was discussed Saturday at a cancer conference in Chicago where doctors also reported progress with new drugs against relapsed ovarian cancer and chronic lymphocytic leukemia, the most common type of leukemia in adults.


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US law prods states to revisit health care rules

CONCORD, N.H. — Prompted by the health care overhaul law, several states are updating their rules for insurance networks to better reflect who is covered and how people shop for and use their benefits.

Washington state just implemented new regulations, and discussions are underway in several others, including Arkansas, Minnesota, California and New Hampshire. Although complaints about one insurer's network prompted New Hampshire's decision to reconsider its rules, insurance officials say the old standards haven't kept up with changes in how and where people get health care.

Washington's rules took effect last week and were designed to balance access with affordability while giving consumers more information about the networks. Insurance Commissioner Mike Kreidler says the health overhaul law increased benefits but also requires consumers to play a bigger role in shopping for insurance.


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How Obama's power plant emission rules will work

WASHINGTON — The Obama administration on Monday plans to make public the first rules limiting carbon emissions from the thousands of power plants.

The pollution controls form the cornerstone of President Barack Obama's campaign to combat climate change and a key element of his legacy.

Obama says the rules are essential to curb the heat-trapping greenhouse gases blamed for global warming. Critics contend the rules will kill jobs, drive up electricity prices and shutter plants across the country.

Environmentalists and industry advocates alike are eagerly awaiting the specifics, which the Environmental Protection Agency will make public for the first time on Monday and Obama will champion from the White House.

While the details remain murky, the administration says the rules will play a major role in achieving the pledge Obama made in Copenhagen during his first year in office to cut America's carbon emissions by about 17 percent by 2020.

Some questions and answers about the proposal:

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Q: How does the government plan to limit emissions?

A: Unable to persuade Congress to act on climate change, Obama is turning to the Clean Air Act. The 1970s-era law has long been used to regulate pollutants like soot, mercury and lead but has only recently been applied to greenhouse gases.

Unlike with new power plants, the government can't regulate existing plant emissions directly. Instead, the government will issue guidelines for cutting emissions, then each state will develop its own plan to meet those guidelines. If a state refuses, the EPA can create its own plan.

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Q: Why are these rules necessary?

A: Power plants are the single largest source of greenhouse gas emissions in the U.S. Environmentalists and the White House say without bold action, climate change will intensify and endanger the public's well-being around the world. In its National Climate Assessment this year, the administration said warming and erratic weather will become increasingly disruptive unless curtailed.

"This is not some distant problem of the future. This is a problem that is affecting Americans right now," Obama said in May.

The United States is only one player in the global climate game. These rules won't touch carbon emissions in other nations whose coal plants are even dirtier. But the White House believes that leading by example gives the U.S. more leverage to pressure other countries to reduce their own emissions.

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Q: How steep will the reductions be?

A: We don't know.

The administration hasn't said whether it will set one universal standard or apply different standards in each state. But Obama's senior counselor, John Podesta, said the reductions will be made "in the most cost-effective and most efficient way possible," by giving flexibility to the states.

That could include offsetting emissions by increasing the use of solar and nuclear power, switching to cleaner-burning fuels like natural gas or creating efficiency programs that reduce energy demand. States might also pursue an emissions-trading plan — also known as cap-and-trade — as several northeast states have already done.

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Q: How will they affect my power bill? What about the economy?

A: It depends where you live. Different states have a different mixes of coal versus gas and other fuels, so the rules will affect some states more than others. Dozens of coal-burning plants have already announced they plan to close.

Still, it's a good bet the rules will drive up electricity prices. The U.S. relies on coal for 40 percent of its electricity, and the Energy Department predicts retail power prices will rise this year because of environmental regulations, economic forces and other factors.

Environmentalists argue that some of those costs are offset by decreased health care costs and other indirect benefits. They also say the transition toward greener fuels could create jobs.

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Q: Doesn't Obama need approval from Congress?

A: Not for this. A 2007 Supreme Court ruling gave the EPA the green light to regulate carbon-dioxide under the Clean Air Act. But that doesn't mean there won't be fierce opposition and drawn-out litigation. The government is expecting legal challenges and is preparing to defend the rules in court if necessary.

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Q: Is this the final step?

A: Not even close. After the draft rule is proposed, there's a full year for public comment and revisions. Then states have another year to submit their implementation plans to the EPA.

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Associated Press writers Jim Kuhnhenn and Dina Cappiello contributed to this report.

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Reach Josh Lederman at http://twitter.com/joshledermanAP


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Radian tries to make its mark in luxury market

Written By Unknown on Jumat, 30 Mei 2014 | 22.27

Designed to resemble a boutique hotel and with condo-level finishes, the just-opened 240-unit Radian luxury complex is hoping to draw the city's well-heeled renters.

The 26-story, $130 million project developed by Forest City Enterprises and the Swampscott-based Hudson Group North America sits along the Greenway at the nexus of Chinatown, the Leather District and the Financial District.

And while it doesn't have a pool like the nearby Kensington or sports courts like The Arlington or The Victor, or even an outdoor roof deck, it's trying to differentiate itself in other ways.

"We don't have some of the bells and whistles other buildings do, but we do have two things that stand out — our location is better and our service is higher quality," said property manager Michael Cheek of Forest City Enterprises.

If you have your groceries delivered, the Radian staff will take them up to your unit and put the perishables away. When you come in from work, there are refresher towels waiting in the lobby and there are steam towels in the gym when you finish a workout.

Have visitors coming to stay? They can rent an apartment for $150-$200 a night and can use the building's amenities.

But all the high-end service comes at a price. The 563-square-foot studios rent for $2,960 to $3,555. One-bedroom apartments, ranging from 617 square feet to 911 square feet, cost $3,400 to $5,100. Two bedrooms, from 1,049 to 1,163 square feet, run from $4,160 to $6,235 a month. And that does not include utilities (everything's electric) or garage parking, which is $400 a month and up.

Only 13 of the 240 units have been rented so far, Cheek said. To spur leasing, Radian is offering concessions — a free month's rent for those signing 12-month leases, and letting tenants lock in rent with two-year leases.

"We think there's a lot of young professionals who have good jobs downtown who want to reward themselves by having a nice place to live," said Cheek.

The fifth floor has a fitness center and yoga studio, as well as a residents lounge overlooking the city. There's also a private conference room to conduct business.

The units have contemporary two-tone kitchen finishes and lots of natural light from oversized windows. Living area floors are "Plyboo," a mixture of plywood and bamboo. The bathrooms have porcelain tile floors, white quartz sinks and tiled walk-in showers. And every unit has a Bosch washer and dryer.

Cheek said the most popular floor plan so far has been the rear "bullnose" apartments that feature living/dining areas with curving glass walls of windows with great downtown views. We looked at a 911-square-foot one bedroom plus study "flex" unit on the 17th floor with an asking rent of about $4,400. It also features a kitchen with Silestone countertops and Whirlpool stainless-steel appliances.

The 4,500-square-foot ground-floor retail space will be leased by four-time James Beard nominee chef Matt Jennings for a restaurant called Townsman, which will open Oct. 1.

"The people who will live here have busy lives, and we want to make living here as easy, stress-free and convenient as possible," Cheek said.


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The Ticker

Romney, Peter Lynch sell local properties

Mitt and Ann Romney are pulling up roots in Belmont — and apparently turning a profit.

Massachusetts' former first couple sold their South Cottage Road condo earlier this month for $1.2 million, according to property records.

Romney, the former Bay State governor and 2012 presidential candidate, and his wife, Ann, had owned the condo at the Woodlands at Belmont Hill since June 2010, when they purchased it for $850,000, records show.

Meanwhile, legendary Fidelity money manager Peter Lynch and his wife, Carolyn, have sold their Beacon Hill home at 51 Chestnut St. in Boston at a loss, for 
$4.5 million, according to Registry of Deeds documents. The circa-1830, Federal-style townhouse had been on the market since 2010, when the asking price was $6.85 million. The Lynches bought it for 
$5.125 million in 2005.

Lincoln Property buys 40 Court St.

Dallas-based Lincoln Property Co. has purchased the 110,000-square-foot office building at 40 Court St. in Boston's Financial District for $31 million, according to Registry of Deeds documents. The seller, New York real estate private equity firm Brickman, bought the property for $37 million in 2007 at the height of the Boston real estate market.

Built in 1912, the United States Trust Co. or Scollay Building's tenants include the Oceanaire Seafood Room, Massachusetts League of Community Health Centers, the Anti-Defamation League of New England and Kearney, Donovan & McGee P.C.

States release zero-emissions auto plan

Eight states on the East and West coasts including Massachusetts released a plan yesterday to work together to put 3.3 million zero-emission vehicles on the nation's roads by 2025.

The so-called "action plan" follows last year's memorandum of understanding announced by the governors of the states, including California and New York. The other states in the pact are Maryland, Oregon, Connecticut, Rhode Island and Vermont. The states represent about 23 percent of the U.S. auto market.

Car manufacturers applauded the action plan but said a lot of work needs to be done to meet the
3.3 million goal with zero-emission vehicles making up less than 1 percent of nationwide new car sales.

Today

 Commerce Department releases personal income and spending for April.


THE SHUFFLE

The Parthenon Group has named Peter Gates as senior adviser. Gates joins the Global Healthcare Practice, where he will focus on strategy development and value creation in the health care industry. Gates has 25 years of experience as both an executive and a consultant for health care companies.


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Panel sees nothing odd on casino vote

The state Gaming Commission yesterday brushed off concerns that Chairman Stephen P. Crosby's decision to recuse himself from discussions over the Boston area's sole casino license could result in a tie vote.

"We're not the first board to have an even number of members (without Crosby)," said Commissioner James F. McHugh. "It's inconceivable to me that we won't reach a decision."

Because of ties to an owner of the Everett land that's the site of Wynn Resorts' proposed casino and his attendance at an opening day party at Suffolk Downs, where Mohegan Sun wants to build, Crosby recused himself earlier this month, leaving the commission with only four members to vote on the Boston-area license.

Yesterday, the commission's general counsel, Catherine Blue, suggested those members discuss ground rules for deliberations and consider what questions they might have for staff and what additional information they might want from the applicants.

The commissioners may even say they have a preference, but still come to a consensus, McHugh said. If they don't, he said, they have the option of telling Wynn and Mohegan Sun to come back with their "best and final offer" to improve their applications.

Although host community hearings are scheduled for June 24 in Revere and June 25 in Everett, a vote on the Boston-area license is not expected until Aug. 29, unless the city goes to arbitration over how much money it's entitled to from Wynn and Mohegan Sun as a surrounding community. In that case, the license may not be awarded until Sept. 12.

A spokeswoman for Mayor Martin J. Walsh yesterday said he met this week with both casino developers, hoping to cut mitigation deals that would preempt a June 16 deadline, after which an arbitrator will decide what Boston deserves. However, she would not provide details of the discussions.

The full commission, including Crosby, expects to award the state's first casino license as early as June 13 in Western Massachusetts, where MGM has proposed an $800 million development in Springfield.

By July, the state's highest court is expected to rule on whether to allow a referendum to repeal the state's 2011 casino law on the November ballot. If the court does allow it, the commission "would have to cross that bridge," said spokeswoman Elaine Driscoll. "But at this point, our licensing process is proceeding."


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Gap filled in downtown

Gap Inc. is seeking workers for a new Gap Outlet that will open in Downtown Crossing — the latest evidence of a looming revival for the Boston shopping district.

The Gap is in talks to open the outlet on Washington Street, across from the Millennium Tower site, in the space previously occupied by the F.Y.E music and video store.

Downtown Crossing has seen heightened interest from retailers and investors in the wake of Millennium Partners starting work on the $630 million Millennium Tower and Filene's building redevelopment — particularly since it announced Arnold Worldwide will relocate its advertising headquarters there in September, and a 30,000-square-foot Roche Bros. supermarket and four-floor Primark store will open in 2015.

"There's clearly more interest," said Ron Druker, a major Downtown Crossing property owner with buildings on Winter, Washington and Bromfield streets, including the Corner Mall. "We get inquiries from brokers and from tenants as to whether or not we have space. We get interest from national and international (companies). It has picked up."

And retail lease prices will only go one way, Druker said — up.

The F.Y.E store closed in January 2012. Next door, the building that once housed a Barnes & Noble has been vacant since the bookseller moved out in the summer of 2006.

"In general, I think there's more activity than we've seen in recent years," said Robert Posner of Commonwealth Holding LP, which owns the former Barnes & Noble space at 395 Washington St.

Since 2010, 35 Downtown Crossing properties have changed hands. In the past year and a half alone, 17 buildings have sold, according to the Downtown Boston Business Improvement District.

"The real estate market is hot, and I think it means people are looking at the district and seeing that it has great value and great potential," BID president Rosemarie Sansone said.

As for retail interest, "there's a lot of movement," according to Sansone. "We see many more people showing spaces every day than we ever have before," she said.

San Francisco-based Gap Inc. did not respond to Herald inquiries.

"The Gap is a well-known brand, and that's exciting," Sansone said. "They have a loyal following."


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How Google got states to legalize driverless cars

MOUNTAIN VIEW, Calif. — About four years ago, the Google team trying to develop cars driven by computers — not people — became convinced that sooner than later, the technology would be ready for the masses. There was one big problem: Driverless cars were almost certainly illegal.

And yet this week, Google said it wants to give Californians access to a small fleet of prototypes it will make without a steering wheel or pedals.

The plan is possible because, by this time next year, driverless cars will be legal in the tech giant's home state.

And for that, Google can thank Google, and an unorthodox lobbying campaign to shape the road rules of the future in car-obsessed California — and maybe even the rest of the nation — that began with a game-changing conversation in Las Vegas.

The campaign was based on a principle that businesses rarely embrace: ask for regulation.

The journey to a law in California began in January 2011 at the Consumer Electronics Show in Las Vegas, where Nevada legislator-turned-lobbyist David Goldwater began chatting up Anthony Levandowski, one of the self-driving car project's leaders. When talk drifted to the legal hurdles, Goldwater suggested that rather than entering California's potentially bruising political process, Google should start small.

Here, in neighboring Nevada, he said, where the Legislature famously has an impulse to regulate lightly.

It made sense to Google, which hired Goldwater.

"The good thing about laws is if they don't exist and you want one — or if they exist and you don't like them — you can change them," Levandowski told students at the University of California, Berkeley in December. "And so in Nevada, we did our first bill."

Up to that point, Google had quietly sent early versions of the car, with a "safety driver" behind the wheel, more than 100,000 miles in California. Eventually, government would catch up, just as stop signs began appearing well after cars rolled onto America's roads a century ago.

If the trigger to act was a bad accident, lawmakers could set the technology back years.

Feeling some urgency, Google bet it could legalize a technology that though still experimental had the potential to save thousands of lives and generate millions in profits.

The cars were their own best salesmen. Nevada's governor and other key policy makers emerged enthusiastic after test rides. The bill passed quickly enough that potential opponents — primarily automakers — were unable to influence its outcome.

Next, Nevada's Department of Motor Vehicles had to write rules implementing the law.

At the DMV, Google had an enthusiastic supporter in Bruce Breslow, then the agency's leader.

Breslow had been fascinated by driverless cars since seeing an exhibit at the 1964 New York World's Fair. Seeing a career-defining opportunity, Breslow shelved other projects and shifted money so he wouldn't have to ask for the $200,000 needed to research and write the rules.

At first, DMV staff panicked — they only had several months to write unprecedented rules on a technology they didn't know. But Google knew the technology, and was eager to help.

"Very few people deeply understand" driverless car technology, said Chris Urmson, the self-driving car pioneer lured from academia who now leads Google's project. Offering policymakers information "to make informed decisions ... is really important to us."

The task fell primarily to David Estrada, at the time the legal director for Google X, the secretive part of the tech giant that houses ambitious, cutting-edge projects. Estrada would trek from San Francisco to Nevada's capital, Carson City, for meetings hosted by DMV staff.

Breslow credited Estrada with making suggestions that made the regulations far shorter, and less onerous, than they would have been. "We quickly jumped in ... to help figure out what the regulation should look like," recalled Estrada.

While others attended the meetings, Google seemed to have a special seat at the table.

Bryant Walker Smith, who teaches the law of self-driving cars as a fellow at Stanford University, described one rule-drafting session where Google — not the DMV — responded to suggestions from auto industry representatives.

"It wasn't always clear who was leading," Smith said. It seemed to him that both Google and the DMV felt ownership of the rules.

By the end of 2011, Nevada welcomed the testing of driverless cars on its roads. Google, however, was focused on its home state, where its Priuses and Lexuses outfitted with radar, cameras and a spinning tower of laser sensors were a regular feature on freeways.

In many ways, Google replicated its Nevada playbook: Frame the debate. Wow potential allies with joy rides. Argue that driverless cars would make roads safer and create jobs.

In January 2012, Google met with state Sen. Alex Padilla, a Massachusetts Institute of Technology engineering graduate. Padilla was intrigued, and agreed to push a bill. Padilla said Nevada's law helped him sell colleagues on the need to act.

"California is home to two things. Number one is the hotbed of innovation and technology. And second, we love our cars. So it only made even more sense to say, 'OK we need to catch up and try and lead the nation,'" Padilla said.

Nevada's swift action, he said, "sent the signal to a lot of colleagues that, 'No, this is not one we want to overthink and study for five years before we take action.'" After all, who in California government wanted a flagship company moving jobs out of the state.

In March 2012, Padilla rode in the driver's seat of a Google car with Levandowski riding shotgun to the news conference announcing his legislation.

In the months that followed, various groups tried to shape Padilla's bill.

One was the Alliance of Automobile Manufacturers, which objected that automakers would be liable for the failure of Google technology strapped onto one of their cars. Trial lawyers, a powerful constituency in the state, successfully lobbied to keep automakers on the hook.

Some inside the Capitol concluded that Padilla was most attuned to Google.

One thing that troubled Howard Posner, then the staffer on the Assembly Transportation Committee responsible for analyzing the bill and suggesting improvements, was that Padilla's legislation would let cars operate without a human present.

Posner argued that lawmakers shouldn't authorize this last step until the technology could handle it. The response, he said, was that Padilla didn't want to do that — "which in my mind meant Google was not willing to do that."

Padilla said that while Google's high profile helped the bill succeed, his office made the decisions. "We're always going to have the final say," he said.

In September 2012, Gov. Jerry Brown went to Google's headquarters and signed Padilla's bill.

Now, California's motor vehicles officials face an end-of-year deadline to write regulations that will allow driverless cars to go from testing to use by the public in June 2015.

At a DMV hearing in March, two Google representatives sat next to DMV staff at the head tables. Their message: Now that self-driving cars were legal, the state should not regulate them too strictly.

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Follow Justin Pritchard at https://twitter.com/lalanewsman


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5 things to know about Apple's duet with Beats

Written By Unknown on Kamis, 29 Mei 2014 | 22.27

CUPERTINO, Calif. — Apple CEO Tim Cook looked like he wanted to dance Wednesday as he discussed his company's $3 billion acquisition of Beats Electronics. The deal, by far the most expensive in Apple's 38-year history, will give the iPhone and iPod maker a line of trendy headphones known for their hip appearance and thumping bass sound.

But Cook seems most excited about the potential of Beat's still nascent music-streaming service, which currently has more than 250,000 subscribers. That's paltry compared to the more than 10 million people subscribing to Spotify's rival streaming service, Cook is confident that will change once Beats has access to the data that Apple Inc. has accumulated while selling more than 35 billion songs to more than 800 million iTunes accounts during the past 13 years.

COMBINING MATH WITH EMOTION

Apple is intrigued with Beats Music's approach to compiling playlists to suit the individual tastes of each subscriber. Rather than just grouping songs by genre or relying on toneless algorithms that analyze past listening habits, Beats also draws upon the knowledge and ears of tastemakers such as Beats' co-founders — rap music pioneer Dr. Dre and longtime recording industry executive Jimmy Iovine, who has been an engineer or producer on seminal albums made by Bruce Springsteen, Tom Petty and Dire Straits.

"We are getting the first music subscription service that got it right, that believes in human curation," Cook said during a Wednesday interview at Apple's Cupertino, California headquarters. "We think this is killer. The feeling that you get from listening to this service is so different than anything else."

FILLING A VOID

Apple is the top seller of songs downloaded over the Internet and has attracted 40 million listeners to its free iTunes Radio service since its launch eight months ago. But neither of those resonates with music lovers like a classic album or a playlist tailored for a person's mood at a particular time, according to Eddy Cue, the head of iTunes.

"With Beats, you can create a playlist that truly moves you," Cue said Wednesday. "It gives you emotions, it gives you meanings, it tells about culture. Those are things you can't get from a single song and we love that."

MONEY MAKER

Cook says Beats is already profitable, six years after Iovine, 61, and Dre, 49, started the company, which is now based in Culver City, California. Dre originally wanted to design flashy sneakers, according to Sony Music CEO Doug Morris, who considers Iovine to be his best friend. Iovine thought making a stylish line of headphones would be more lucrative. The company launched its music streaming service earlier this year.

After generating $1.1 billion in revenue last year, Beats' sales increased by 30 percent during the first three months this year, Cook said. He expects Beat to boost Apple's earnings beginning in October. Apple earned $37 billion on revenue of $171 billion in its last fiscal year, so Beats' initial contribution won't be that significant financially.

A DECADE-LONG COURTSHIP

Iovine has disparaged the technology industry as "culturally inept," but he says he has always thought of Apple differently since he first met the company's late co-founder, Steve Jobs, to discuss the state of digital music in 2003.

"I came back to my team and said, 'These guys get our industry and they get culture,'" Iovine said Wednesday. "This is a company that was founded by a person who respects music."

Cook, who worked closely with Jobs before succeeding him as CEO in 2011, says the admiration was mutual.

Jobs "knew Jimmy very well and he loved Jimmy very much," Cook said.

THINKING DIFFERENTLY

Many Apple watchers are convinced that Jobs would have never have bought Beats, no matter how fond he might have been of Iovine.

Jobs, who died in October 2011, was famous for hoarding cash and when he spent money, he preferred investing it in research that would enable Apple to innovate on own. Until Wednesday, Apple's biggest previous purchase had been its $400 million acquisition of NeXt Computer, a company that Jobs started after he was ousted from Apple in the 1980s.

Jobs also had denigrated music subscription services, such as the one that Beats is trying to build.

Cook says he tries not to ever consider what Jobs might have done if he were still alive, but he insists that his predecessor wasn't as resistant to acquisition as most people think.

"We have never been anti-acquisition," Cook said. "We have looked at some very, very large companies and we decided not to buy them. But we didn't decide not to do them out of religious reasons. There was no rule, 'Thou Shalt Not Acquire.' There was no rule that everything had to be built organically."

Apple has now bought 27 companies since September 2012. Most of them have been small deals that haven't required Apple to disclose the price.


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8 vehicles earn top rating for collision warning

DETROIT — The 2014 Chevrolet Impala was the only non-luxury car to earn the highest safety rating in new tests of high-tech crash prevention systems.

The Insurance Institute for Highway Safety tested cars equipped with collision warning and automatic braking systems. It gave a "superior" rating to cars that both warned the driver of a potential collision and applied the automatic brakes to significantly slow the cars.

The BMW 5 Series, BMW X5, Mercedes-Benz E-Class, Buick Regal, Cadillac CTS, Cadillac XTS and 2015 Hyundai Genesis also earned "superior" ratings in the test results released Thursday.

Collision warning and automatic braking systems use radars, cameras and lasers to determine if a vehicle is getting too close to the car in front of it. Most of the systems warn the driver — audibly, with vibrations in the seat, or both — and prepare the brakes to maximize their effect when the driver presses them.

In some cases, the vehicles brake themselves. That action may not prevent a crash, the institute said, but reducing the speed before the car hits something can help make crashes — and injuries — less severe.

The Impala's rating wasn't affected by a government investigation of one driver's report that the automatic braking system went off several times without warning, eventually causing an accident. Insurance Institute spokesman Russ Rader said the group is aware of the investigation but had no issues with the Impala in testing.

The Arlington, Virginia-based institute, which is funded by insurers, began testing and rating the systems last fall in hopes of pressuring automakers to adopt them as standard equipment. The institute said 40 percent of 2014 models now offer forward collision warning as an option, while 20 percent offer automatic braking. Acura, Mercedes-Benz and Volvo offer the systems as standard equipment on some cars.

Tests are conducted at 12 miles per hour and 25 miles per hour. In the highest-rated cars, the brakes slowed the cars to 2 or 3 mph or less.

Thirteen 2014 models earned "advanced" ratings, meaning they warned drivers but their brakes reduced the speed only moderately. Those vehicles were: the BMW 3 Series, Buick LaCrosse, Lexus IS, Audi A3, Audi A6, BMW 3 Series, Dodge Durango, Lexus GS, Mercedes-Benz CLA, Infiniti QX50 and Infiniti QX70. The BMW 5 Series and BMW X5, which won superior ratings when equipped with a radar and camera, earned "advanced" ratings when equipped with City Brake, a camera-only system.

Three models earned "basic" ratings, meaning they warned drivers of a potential collision but reduced the car's speed by less than 5 mph. They were: the BMW 3 Series (without City Brake), the Infiniti Q70 and the Toyota Avalon.


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Dish to become largest company to accept bitcoin

LOS ANGELES — Dish Network Corp. says it will become the largest company yet to accept payment in bitcoin.

The satellite TV company says it will begin accepting the digital coins through payment processor Coinbase by September. Coinbase will instantly convert the bitcoins into cash, eliminating the risk of price fluctuations to Dish.

Dish's chief operating officer, Bernie Han, says the idea came from company employees who had become avid bitcoin users.

While Han says demand for the payment system is unclear, it aligns the Englewood, Colorado, company's high-tech offerings — such as the ability to watch live TV on mobile devices — with the tech-savvy customers it is trying to reach.

He also said Coinbase's payment processing fee is attractive compared to the average of what it pays to other processors.


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Applications for US jobless aid near 7-year low

WASHINGTON — The number of Americans seeking unemployment benefits fell last week to nearly the lowest level in seven years, a sign hiring may be picking up.

Weekly applications for unemployment aid dropped 27,000 to a seasonally adjusted 300,000, the Labor Department said Thursday. That's just above a seven-year low reached three weeks ago. The four-week average, a less volatile measure, fell to 311,500, the fewest since August, 2007.

Applications are a proxy for layoffs, so the drop suggests companies are cutting fewer jobs. When employers are confident enough to keep staff, they may also step up hiring. That is a good sign ahead of May's jobs report, to be released next Friday.

The downward trend in layoffs also suggests employers have shrugged off a dismal economic performance in the first three months of the year. A separate government report Thursday showed that the economy shrank 1 percent at an annual rate in the first quarter, due largely to the impact of freezing winter weather.

Yet applications for unemployment benefits have fallen 10 percent since the year began, a clear signal that employers aren't worried about a longer-term slowdown. Many economists expect growth will rebound to a 3.8 percent pace in the second quarter.

"The data remain extremely encouraging," Jim O'Sullivan, chief U.S. economist at High Frequency Economics, said in a research note. The report "suggests that the pick-up (in hiring) is continuing," he added.

Fewer Americans are also receiving benefits. The number of recipients declined to 2.63 million, the lowest level since November 2007.

The decline in applications since the start of the year has been accompanied by greater job gains, though unemployment remains at historically high levels.

The economy gained 288,000 jobs in April, the most in 2 ½ years, and the unemployment rate plunged to 6.3 percent from 6.7 percent. But the drop occurred because fewer people looked for work. The government doesn't count people as unemployed unless they are actively searching.

In the first four months of this year, employers have added an average of 214,000 jobs a month, up from 194,000 last year.

The improved hiring may help boost economic growth for the rest of 2014. More jobs mean more people have paychecks to spend.

The economy shrank in the first quarter as businesses cut back on spending and the cold weather kept consumers away from shopping malls, car dealer lots and open houses.


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Fox News hires 'Clueless' star Stacey Dash as commentator

NEW YORK — Fox News Channel has gone Hollywood for its latest hire. The news network is bringing on actress Stacey Dash as a paid contributor.

Dash is known for her roles in the "Clueless" movie and television series. The black actress landed on the political radar for endorsing Republican Mitt Romney over Democrat Barack Obama in the last presidential election. She was heavily criticized in the black community for supporting the white candidate.

Fox News programming executive Bill Shine said Wednesday that Dash will offer cultural analysis and commentary across several of the network's programs.

Fox and the other cable news networks have been slumping in the ratings with a relatively slow news stretch this year.

Fox's list of contributors includes Karl Rove, James Carville, George Will, Dennis Miller and Sarah Palin.


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US bank earnings decline 7.7 percent in 1Q

Written By Unknown on Rabu, 28 Mei 2014 | 22.26

WASHINGTON — U.S. banks' earnings declined 7.7 percent in the January-March quarter from a year earlier, as higher interest rates dampened demand for mortgage refinancing and reduced banks' revenue from the mortgage business.

The data issued Wednesday by the Federal Deposit Insurance Corp. highlighted the impact of the increase in interest rates that occurred in the spring of 2013.

It was only the second time in the last 19 quarters that the banking industry, which has been recovering from the financial crisis, posted a decline in net income from the year-earlier quarter.

The FDIC reported that the banking industry earned $37.2 billion in the first quarter of this year, down from $40.3 billion in the same period in 2013.

It was the first time since the third quarter of 2013 that banks marked a year-over-year profit decline — and that was the first decline since the spring of 2009, when the country was still mired in the Great Recession.

The latest report also showed the number of banks on the FDIC's problem list fell to 411 in the first quarter from 467 in the fourth quarter of last year.

Despite recent declines, long-term mortgage rates still are nearly a full percentage point above record lows reached about a year ago. The increase over the year was driven in part by speculation that the Federal Reserve would reduce its bond purchases, which have helped keep long-term interest rates low. Indeed, the Fed has announced four declines in its monthly bond purchases since December because the economy appears to be healing. But the Fed has no plans to raise its benchmark short-term rate from record lows.

Reduced income from trading also contributed to the first-quarter decline in banks' profit, the FDIC said. But the comparison was being drawn with banks' highest-earning quarter on record in January-March of last year, which the FDIC said was pumped up by some unusual profit gains.

The health of the banking industry continued to improve in the first quarter, with sour loans on the books declining, lending getting more robust and fewer banks unprofitable, FDIC officials said.

"The first-quarter results show a continuation of the recovery in the banking industry," FDIC Chairman Martin Gruenberg said in a statement.

The pace of banks' lending picked up in the first quarter. Total loan balances rose by $37.8 billion, or 0.5 percent, from the final quarter of 2013 even as mortgage lending declined and credit card loans marked a seasonal decrease.

Some experts have predicted strong growth in lending this year, with demand for loans growing as new jobs are created, incomes rise and business confidence strengthens.

Community banks earned $4.4 billion in the first quarter, the FDIC said, adding a new data category to its quarterly report.

Banks with assets exceeding $10 billion continued to drive the bulk of the earnings growth in the January-March period. While they make up just 1.6 percent of U.S. banks, they accounted for about 82 percent of industry earnings.

Those banks include Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. Most of them have recovered with help from federal bailout money during the financial crisis and record-low borrowing rates.

Last year, the number of bank failures slowed to 24. That is still more than normal. In a strong economy, an average of four or five banks close annually. But failures were down sharply from 51 in 2012, 92 in 2011 and 157 in 2010 — the most in one year since the height of the savings and loan crisis in 1992.

So far this year, eight banks have failed. Thirteen had been shuttered by this time last year.

The decline in bank failures has allowed the deposit insurance fund to strengthen. The fund, which turned from deficit to positive in the second quarter of 2011, had a $48.9 billion balance at the end of March, according to the FDIC. That compares with $47.2 billion as of Dec. 31.

The FDIC, created during the Great Depression to ensure bank deposits, monitors and examines the financial condition of U.S. banks.

The agency guarantees bank deposits up to $250,000 per account. Apart from its deposit insurance fund, the FDIC also has tens of billions of dollars in reserves.


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Stocks mostly lower after latest record high

NEW YORK — Stocks are mostly lower in early trading after setting a record high the day before.

Botox maker Allergan fell 3 percent after Valeant Pharmaceuticals made a new unsolicited offer for the company.

Toll Brothers rose 4 percent after reporting that its profits more than doubled as the home builder raised prices and delivered more houses.

The Standard & Poor's 500 index was flat at 1,912 in the first few minutes of trading. The index closed at a record the day before.

The Dow Jones industrial average fell 22 points, or 0.1 percent, to 16,653. The Nasdaq lost two points, less than 0.1 percent, to 4,234.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.47 percent from 2.52 percent late Tuesday.


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Google: We're building car with no steering wheel

LOS ANGELES — Google will build a car without a steering wheel.

It doesn't need one because it drives itself.

The two-seater won't be sold publicly, but Google said Tuesday it hopes by this time next year, 100 prototypes will be on public roads. Though not driving very quickly — the top speed would be 25 mph.

The cars are a natural next step for Google, which already has driven hundreds of thousands of miles in California with Lexus SUVs and Toyota Priuses outfitted with a combination of sensors and computers.

Those cars have Google-employed "safety drivers" behind the wheel in case of emergency. The new cars would eliminate the driver from the task of driving.

No steering wheel, no brake and gas pedals. Instead, buttons for go and stop.

"It reminded me of catching a chairlift by yourself, a bit of solitude I found really enjoyable," Sergey Brin, co-founder of Google, told a Southern California tech conference Tuesday evening of his first ride, according to a transcript.

The electric-powered car is compact and bubble-shaped — something that might move people around a corporate campus or congested downtown.

Google is unlikely to go deeply into auto manufacturing. In unveiling the prototype, the company emphasized partnering with other firms.

The biggest obstacle could be the law.

Test versions will have a wheel and pedals, because they must under California regulations.

Google hopes to build the 100 prototypes late this year or early next and use them in a to-be-determined "pilot program," spokeswoman Courtney Hohne said. Meanwhile, by the end of this year, California's Department of Motor Vehicles must write regulations for the "operational" use of truly driverless cars.

The DMV had thought that reality was several years away, so it would have time to perfect the rules.

That clock just sped up, said the head of the DMV's driverless car program, Bernard Soriano.

"Because of what is potentially out there soon, we need to make sure that the regulations are in place that would keep the public safe but would not impede progress," Soriano said.

___

Contact Justin Pritchard at https://twitter.com/lalanewsman.


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Thai Facebook users get censorship scare

BANGKOK — Thailand's new military rulers said that a sudden interruption of access to Facebook on Wednesday was not part of a censorship policy, but due instead to a technical hitch.

The afternoon blockage did not affect all users but drew a flurry of attention online. It lasted for at least an hour and came just a day after the new military government announced an Internet crackdown. The junta has banned dissemination of information that could cause unrest, effectively banning criticism of last week's coup.

A statement from the junta, called the National Council for Peace and Order, declared that "there is no policy to suspend or close down Facebook."

It said an inspection found that there was a "technical error" at the telecommunications gateway that connects Internet service providers to international circuits, and it had ordered the problem fixed.

Deputy army spokesman Col. Winthai Suvaree later came on television to offer the same explanation and announce that the problem had been corrected. All television stations must broadcast official announcements from the junta, which seized power May 22 in what it said was a bid to end more than six months of sometimes violent political disorder. Newspapers and TV and radio stations are exercising self-censorship.

On Tuesday, the government's Ministry of Information and Communication Technology told the Thai press that a new national gateway was being planned to filter the Internet more effectively, and that social media was being monitored closely for violations of the new censorship rules.

Thanit Prapatanan, director of the ministry's Office of Technology Communications Crime Prevention and Suppression, said Wednesday that his office has shut down at least 330 websites since the junta's censorship orders came out, but he denied shutting down Facebook in Thailand.

"We're blocking access to webpages that could incite chaos, instigate violence or division or pose a threat to national security. We are looking at the individual pages. For example, on Facebook, we only look for such posts, not looking to shut down Facebook in Thailand as a whole. But if there are any pages that violate the order, we will definitely block it."

Before the interruption, a junta spokesman also said services such as Facebook would not be targeted for shutdown, but individuals would be investigated.

"People put hate speech in social media and create confusion and division in society," Col. Weerachon Sukhondhapatipak said at a news conference.

Even under elected leadership, Thailand has exercised unusual control over the Internet, blocking thousands of web pages containing pornography or material deemed insulting to the nation's royal family. Criticism of the monarchy — online or elsewhere — is a crime punishable up to 15 years in jail.

Several years ago, the government reached an agreement with YouTube that allowed it to block selected pages to viewers in Thailand. The government and the army also maintain teams of watchers to monitor web boards and other sites for inappropriate content.

___

AP writer Thanyarat Doksone contributed to this report.


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Stocks fall back from record highs

NEW YORK — Stocks were mostly lower Wednesday, pushing the market back below record levels. Investors were unimpressed with a second bid by Valeant Pharmaceuticals for Botox maker Allergan.

KEEPING SCORE: The Standard & Poor's 500 index fell three points, or 0.2 percent, to 1,909 as of 11:01 a.m. Eastern time. The Dow Jones industrial average fell 27 points, or 0.2 percent, to 16,648. The Nasdaq composite dropped 13 points, or 0.3 percent, to 4,223.

RECORD RUN: The stock market has edged up to record levels against a backdrop of reports that have shown the U.S. economy is gradually strengthening after a winter slump. The S&P 500 closed above 1,900 for the first time on Friday.

DRUG DEAL: Valeant Pharmaceuticals added more cash to its offer to buy Botox maker Allergan in a bid that could now be worth more than $50 billion. The Canadian drugmaker said is now offering $58.30, $10 more than its previous offer, and a portion of its own stock for each Allergan share. Allergan fell $7.89, or 4.5 percent, to $157.10. Analysts and investors had been expecting a bigger bid.

TOUGH TIMES: Consumer discretionary stocks, which include retailers, automakers and entertainment companies, fell the most of the 10 sectors that make up the S&P 500 index. Dollar General had the biggest loss. The stock dropped $1.68, or 3 percent, to $54.62 after analysts at Deutsche Bank cut their forecast for the retailer's earnings, saying that it faces tough pricing competition from other retailers including Walmart and Target.

BUILDERS: Toll Brothers rose after the homebuilder reported that its second-quarter income more than doubled as the company raised its prices and delivered more houses. The results beat Wall Street's expectations and sent the stock up 47 cents, or 1.3 percent, to $36.11.

BONDS: In the market for U.S. government bonds, the yield on the 10-year Treasury note fell to 2.45 percent from 2.52 percent late Tuesday. The yield is the lowest it's been in 11 months. Bonds have gained this year, pushing yields lower, as economic growth has continued at a moderate pace without stoking inflation.

COMMODITIES: The price of crude oil dropped 47 cents, or 0.4 percent, to $103.64 a barrel. Gold fell $3.50, or 0.2 percent to $1,262.80 an ounce.


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US stocks open higher after holiday weekend

Written By Unknown on Selasa, 27 Mei 2014 | 22.27

NEW YORK — The U.S. stock market is opening higher as traders return from a long holiday weekend.

Investors were encouraged by a report that orders for big-ticket items unexpectedly rose last month.

The Standard & Poor's 500 index rose eight points, or 0.4 percent, to 1,908 in the first few minutes of trading Tuesday.

The Dow Jones industrial average rose 58 points, or 0.4 percent, to 16,663. The Nasdaq composite rose 27 points, or 0.6 percent, to 4,212.

U.S. markets were closed Monday for the Memorial Day holiday.

The S&P 500 index, the benchmark for most U.S. mutual funds, closed above 1,900 for the first time on Friday.

Bank of America rose 3 percent after the bank said it's resubmitting its capital plan to the Federal Reserve.


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US home prices rise at slower rate in March

WASHINGTON — U.S. home prices rose in March, but the gains are decelerating as fewer Americans can afford to buy.

The Standard & Poor's/Case-Shiller 20-city home price index rose 12.4 percent in March compared with 12 months earlier. While healthy, that rate of growth has slowed from both February and January.

Home prices rose in 19 of the 20 cities in March compared with the previous month, with only New York registering a slight decline, Standard & Poor's reported Tuesday. Leading the gains was San Francisco with a 2.4 percent monthly increase, while prices in Seattle, another hub for technology firms, rose 1.9 percent.

The housing market has struggled in recent months, after notching strong growth in the first half of 2013.

Rising prices and higher interest rates beginning in the middle of last year made homes less affordable for would-be buyers.

Meanwhile, a limited supply of homes is available to buy. New construction has focused increasingly on rental apartments, instead of single-family homes. And 9.7 million Americans are stuck in homes worth less than their mortgage debts, making them reluctant to sell, according to the real estate data firm Zillow.

The price gains over the past 12 months were the "result of a witch's brew," said Stan Humphries, chief economist at Zillow. It was made possible by the lows of the housing bust that began in 2007, the historically low mortgage rates and a limited supply of homes on the market.

"These influences are beginning to fade, and we're already seeing a monthly slowdown in home prices in more recent data," Humphries said.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the monthly gains reported by the Case-Shiller index seem excessive.

"Every indicator of housing market activity and prices we know is slowing or falling outright," Shepherdson said.

The index is not adjusted for seasonal variations, so the gains can reflect the warmer weather after a harsh winter.

Tampa showed the largest slowdown in annual price gains. Its growth rate went from 13.4 percent year-over-year in February to 10.7 percent in March. Las Vegas and San Francisco posted the strongest year-over-year growth.

Home sales and construction started recovering about two years ago from the Great Recession. But a sharp jump in mortgage rates last spring caused sales of existing homes to start falling in the summer.

Average rates for fixed, 30-year mortgages last week are 4.2 percent, compared to 3.51 percent a year ago.

The National Association of Realtors said Thursday that existing homes sold in April at a seasonally adjusted annual rate of 4.65 million, a 6.8 percent decrease over the past 12 months.

The Case-Shiller index covers roughly half of U.S. homes. The index measures prices compared with those in January 2000 and creates a three-month moving average. The March figures are the latest available.


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Median CEO pay crosses $10 million in 2013

NEW YORK — They're the $10 million men and women.

Propelled by a soaring stock market, the median pay package for a CEO rose above eight figures for the first time last year. The head of a typical large public company earned a record $10.5 million, an increase of 8.8 percent from $9.6 million in 2012, according to an Associated Press/Equilar pay study.

Last year was the fourth straight that CEO compensation rose following a decline during the Great Recession. The median CEO pay package climbed more than 50 percent over that stretch. A chief executive now makes about 257 times the average worker's salary, up sharply from 181 times in 2009.

The best paid CEO last year led an oilfield-services company. The highest paid female CEO was Carol Meyrowitz of discount retail giant TJX, owner of TJ Maxx and Marshall's. And the head of Monster Beverage got a monster of a raise.

Over the last several years, companies' boards of directors have tweaked executive compensation to answer critics' calls for CEO pay to be more attuned to performance. They've cut back on stock options and cash bonuses, which were criticized for rewarding executives even when a company did poorly. Boards of directors have placed more emphasis on paying CEOs in stock instead of cash and stock options.

The change became a boon for CEOs last year because of a surge in stocks that drove the Standard & Poor's 500 index up 30 percent. The stock component of pay packages rose 17 percent to $4.5 million.

"Companies have been happy with their CEOs' performance and the stock market has provided a big boost," says Gary Hewitt, director of research at GMI Ratings, a corporate governance research firm. "But we are still dealing with a situation where CEO compensation has spun out of control and CEOs are being paid extraordinary levels for their work."

The highest paid CEO was Anthony Petrello of oilfield-services company Nabors Industries, who made $68.3 million in 2013. Petrello's pay ballooned as a result of a $60 million lump sum that the company paid him to buy out his old contract.

Nabors Industries did not respond to calls from The Associated Press seeking comment.

Petrello was one of a handful of chief executives who received a one-time boost in pay because boards of directors decided to re-negotiate CEO contracts under pressure from shareholders. Freeport-McMoRan Copper & Gold CEO Richard Adkerson also received a one-time payment of $36.7 million to renegotiate his contract. His total pay, $55.3 million, made him the third-highest paid CEO last year.

The second-highest paid CEO among companies in the S&P 500 was Leslie Moonves of CBS. Moonves' total compensation rose 9 percent to $65.6 million in 2013, a year when the company's stock rose nearly 70 percent.

"CBS's share appreciation was not only the highest among major media companies, it was near the top of the entire S&P 500," CBS said in a statement. "Mr. Moonves' compensation is reflective of his continued strong leadership."

Media industry CEOs were, once again, paid handsomely. Viacom's Philippe Dauman made $37.2 million while Walt Disney's Robert Iger made $34.3 million. Time Warner CEO Jeffrey Bewkes earned $32.5 million.

The industry with the biggest pay bump was banking. The median pay of a Wall Street CEO rose by 22 percent last year, on top of a 22 percent increase the year before. BlackRock chief Larry Fink made the most, $22.9 million. Kenneth Chenault of American Express ranked second with earnings of $21.7 million.

Like stock compensation, performance cash bonuses jumped last year as a result of the surging stock market and higher corporate profits. Earnings per share of the S&P 500 rose 5.3 percent in 2013, according to FactSet. That resulted in an average cash bonus of $1.9 million, a jump of 12.9 percent from the prior year.

More than two-thirds of CEOs at S&P 500 companies received a raise last year, according to the AP/Equilar study, because of the bigger profits and higher stock prices.

CEO pay remains a divisive issue in the U.S. Large investors and boards of directors argue that they need to offer big pay packages to attract talented men and women who can run multibillion-dollar businesses.

"If you have a good CEO at a company, the wealth he might generate for shareholders could be in the billions," says Dan Mitchell, a senior fellow at the Cato Institute, a libertarian think tank. "It might be worth paying these guys millions for doing this type of work."

CEOs are still getting much bigger raises than the average U.S. worker.

The 8.8 percent increase in total pay that CEOs got last year dwarfed the average raise U.S. workers received. The Bureau of Labor Statistics said average weekly wages for U.S. workers rose 1.3 percent in 2013. At that rate an employee would have to work 257 years to make what a typical S&P 500 CEO makes in a year.

"There's this unbalanced approach, where there's all this energy put into how to reward executives, but little energy being put into ensuring the rest of the workforce is engaged, productive and paid appropriately," says Richard Clayton, research director at Change to Win Investment Group, which works with labor union-affiliated pension funds.

Investors have become increasingly vocal about executive pay since the recession. This has led to an increasing number of public spats between boards of directors, who propose pay packages, and shareholders, who own the company. These fights become public during "say on pay" votes, when shareholders have an opportunity to show they approve or don't approve of pay packages. Votes are non-binding, but companies sometimes act when there is clear disapproval from shareholders.

Petrello was the best-paid CEO largely because the board of directors of Nabors Industries' wanted to end his previous contract. Under that contract, Petrello could have been owed huge cash bonuses, and the company could have paid out tens of millions of dollars if he were to die or become disabled. The board changed his contract following "say on pay" votes in 2012 and 2013 that showed shareholders were unhappy with how Nabors paid its executives.

There have been other signs of shareholder concern about CEO pay. This month, 75 percent of Chipotle Mexican Grill shareholders voted against a proposed pay package for co-CEOs Steve Ells and Montgomery Moran. Ells earned $25.1 million in 2013 while Moran earned $24.3 million, a 27 percent rise in compensation for each. Chipotle spent $49.5 million on CEO pay last year, the fourth highest in the S&P 500.

"Companies are now taking the time to think through their pay practices and are talking more with shareholders," says Hewitt of GMI Ratings. "There's still a long way to go but pay practices are getting better."

To calculate a CEO's pay package, the AP and Equilar looked at salary as well as perks, bonuses and stock and option awards, using the regulatory filings that companies file each year. Equilar looked at data from 337 companies that had filed their proxies by April 30. It includes CEOs who have been at the company for two years.

One prominent name not included in the data was Oracle CEO Larry Ellison, who is typically one of the best paid CEOs in the country.

Oracle files its salary paperwork later in the year, so Ellison was excluded in the 2013 survey data. He was awarded $76.9 million in stock options for Oracle's fiscal year ending May 2013, according to proxy filings.

Among other findings:

— Female CEOs had a median pay package worth more than their male counterparts, $11.7 million versus $10.5 million for males. However, there were only 12 female CEOs in the AP/Equilar study compared with 325 male CEOs that were polled.

— The CEO who got the biggest bump in compensation from 2012 to 2013 was Rodney Sacks, the CEO of Monster Beverage. Sacks earned $6.22 million last year, an increase of 679 percent. Monster's board of directors awarded Sacks $5.3 million in stock options to supplement his $550,000 salary and $300,000 cash bonus.

____

Follow Ken Sweet on Twitter @kensweet


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US consumer confidence moved up in May

WASHINGTON — U.S. consumers were slightly more confident in the economy in May than in April, partly because they are more optimistic about future hiring and income gains.

The Conference Board says that its confidence index rose to 83 from 81.7 in April, which was revised lower. That's the second-highest reading since January 2008, just after the Great Recession began. Only March was higher at 83.9.

But the index still isn't back to healthy levels. It regularly topped 90 before the recession.

Just over one-fifth of Americans expect their incomes to grow over the next six months, according to the survey, the highest level since December 2007.

Consumer sentiment is a closely watched figure, as consumer spending accounts for 70 percent of the nation's economic activity.


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Philadelphia Inquirer, Daily News up for auction

PHILADELPHIA — Businessman Lewis Katz and philanthropist H.G. "Gerry" Lenfest are taking over Philadelphia's two largest newspapers with an $88 million auction bid.

Katz and another businessman, George Norcross, had bought The Philadelphia Inquirer, the Philadelphia Daily News and the Philly.com news website for $55 million in 2012. But they began feuding and competed to take control at Tuesday's auction.

Katz made his fortune investing in the Kinney Parking empire and the Yankees Entertainment and Sports Network in New York. He supports the investigative reporting favored by current Inquirer editor Bill Marimow.

Norcross had owned just over 50 percent of the company. Katz held a 26 percent stake and his ally Lenfest, a former cable magnate, a 16 percent stake.


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Startup lets clean water flow

Written By Unknown on Minggu, 25 Mei 2014 | 22.27

When you are tackling one of the biggest problems on the planet, you need as many people on your side as possible.

That is the strategy Drinkwell, a Cambridge-based startup, is using to help provide clean water to the Third World.

"You really want to work with locals and have local ownership of the problem," said Minhaj Chowdhury, CEO and co-founder of Drinkwell.

Drinkwell, which has developed a cheap, reusable system of removing toxins such as arsenic, fluoride and iron, partners with people in third-world villages to treat and sell clean water to their neighbors.

"What you really want to do is create a true opportunity for the community to maintain the system and, while you're at it, create some kind of economic opportunity," Chowdhury said. "What we wanted to do is come up with a solution that actually lasts. It's really life and death for a lot of these folks."

Nearly 800 million people do not have access to clean water, and as many as 8 million people a year die from water related illnesses, according to the United Nations.

Drinkwell's model is designed to create a permanent solution. Many programs that have tried to bring clean water to the Third World have fizzled when funding waned. Drinkwell will not have this issue, Chowdhury said, because towns and villages will rely on local employees instead of an international group.

Drinkwell's water purifying system fits over existing wells, making a liter of clean water available for half a penny.

The system cleans water using ion-exchange technology, stripping toxins from the water using reusable resin beads, to provide enough water for 600 households. It produces 99 liters of clean water for every 100 liters of water put in, much more than established methods.

Drinkwell systems are connected to Twitter, so they can be monitored remotely. Because many people have basic access to cellphones and Twitter in the countries Drinkwell is serving, information about the levels of toxins in certain systems and even how long the line is for clean water can be shared in real-time.

Announced as a MassChallenge finalist last week, Drinkwell currently has 200 systems in place in India, Laos, Nepal and Cambodia through various partnerships, but is hoping to put its own model in place soon.


22.27 | 0 komentar | Read More

Starting 2012 Chrysler van gives driver a jolting jump

Recently I purchased a 2012 Chrysler Town & Country SXT V6 van with 39,000 miles. It is a one-owner vehicle with no Carfax issues. When starting out anytime, the accelerator pedal moves about an inch down before the vehicle responds from idle. When it does it jumps forward rather than a smooth reaction. This makes me let up on the pedal and then it jumps again when I reapply the throttle. This may be an inherent characteristic. I can describe the issue like this: If it is idling at 800 rpm at a stop, it jumps to 2500 rpm to get going, then adjusts to the pedal position. I called the dealership and they want to do a diagnostic and test drive for more than $100.

You are correct that some of the transmission's characteristics may be inherent. The software that controls the transmission is programmed to maximize fuel economy by tailoring shifts to specific driving conditions. The "ECO" button, for example, will cause the transmission to shift directly from first to third gear, softening acceleration to improve fuel economy.

Chrysler has issued two software updates that address shift quality from the 6-speed automatic transmission in this vehicle. One of these is called the "enhanced pedal" update which, according to the bulletin, "will make the vehicle more responsive with less pedal input and take less effort to maintain a constant cruising speed."

You didn't mention where you purchased the vehicle, but it's worth asking the dealer if your vehicle is affected by the bulletin, and if the update was done at no cost to the original owner. If not, even though the vehicle is just a few thousand miles out of warranty, this may be covered as a goodwill adjustment.

I have a 2007 Ford Focus with a trunk release issue. When I push the trunk release button on the dash and when I push the trunk release button on the remote, it sounds like a loud machine gun firing and always causes heads to turn in the parking lot. This occurs about 90 percent of the time. Usually the trunk does release, but occasionally it doesn't work and I have to repeat the process or unlock it with the key. Also, the dash light appears, indicating that the trunk isn't locked after I close it even though usually it is locked.

The most likely cause is a poor electrical connection or ground in the trunk release solenoid circuit. Ford issued service bulletin #10-5-9 in March 2010 outlining a diagnostic procedure for the trunk release. The bulletin deals with an inoperative solenoid and identifies the possibility of a poor connection between the trunk release harness connector and the solenoid. Even though your symptom is a bit different, this is the place to start.

I have a 2005 Mercury Mariner that I purchased new. The vehicle is in showroom condition with 47,000 miles on it. Here's the issue. The tachometer on the left has a little window that displays information such as direction, door open, oil change needed, etc. This has dulled to the point of being barely visible. The dealer states that the whole section of the dash must be replaced at a cost of around $700. Is there not a less expensive way? I like everything to be just right!

The dashboard on your vehicle is back-lit with a number of small light bulbs. The individual bulbs are replaceable by removing the dashboard to gain access. The real question is whether the "dulled" display is due to a burned-out bulb or failed module supplying the info to the display. If you can read the specific information displayed, even when dulled, I suspect the lamp behind it is burned out.

Paul Brand, author of "How to Repair Your Car," is an automotive troubleshooter, driving instructor and former race-car driver. Readers may write to him at: Star Tribune, 425 Portland Ave. S., Minneapolis, Minn., 55488 or via email at paulbrand@startribune.com. Please explain the problem in detail and include a daytime phone number.


22.26 | 0 komentar | Read More

Chips still on web gambling

Online gaming proponents are vowing to push ahead despite a leading casino industry lobbying group's withdrawal of support for expanded Internet gambling, which has proved to be a divisive issue among Las Vegas gaming titans.

State Treasurer and gubernatorial candidate Steven Grossman said the reversal by the American Gaming Association does not chill his interest in exploring online gaming to boost the state Lottery.

"They can have their squabbles out there all they want," Grossman said. "We'll continue to move forward … to study this issue and how it can potentially affect us, one way or another. Any smart business of any kind, public or private, would study that. You have to change to survive and flourish."

The AGA announced this past week it would no longer push to expand online gaming into new states, an issue that has pitted opponents such as Sands chief Sheldon Adelson and Wynn Resorts head Steve Wynn against supporters such as MGM and Caesars Entertainment.

Grossman said the near $5 billion state Lottery still wants to explore if online gaming can help preserve its market share, so long as credit cards can't be used to play and if it doesn't increase gambling addiction or hurt Lottery retailers.

"I hear the differences of opinion out there," Grossman said. "We're not going to get dragged one way or another into that debate. We'll simply study and be very careful with any approach to online gaming that doesn't protect the people of this commonwealth appropriately."

A bill is pending in the Legisla-

ture that would clear the path for the Lottery to experiment with online gaming.

Adam Krejcik, managing director at Eilers Research, which tracks online gambling, said the AGA's move dampened the prospects for new states jumping into the arena, particularly in the wake of poor returns in New Jersey.

"I think a state would much rather have the AGA support … someone needs to be leading the charge," Krejcik said. "It's hard to put a positive spin on it."

Krejcik said online gaming revenue this year in New Jersey, where casinos run gambling sites, "will come in below the most conservative estimates out there," about $140 million. Projections were as high as $1.2 billion, he said.

The state Gaming Commission — whose chairman, Stephen Crosby, called a forum in March to discuss online gambling, saying "the time is now" to discuss legalizing it — said the AGA decision does not change its posture.

"The AGA's decision to withdraw from discussions regarding online gaming reinforces the commission's position on this topic," the commission said in a statement. "The commission believes that a slow and deliberate approach to this issue is the most responsible way to move forward given the significant varying opinions on this matter."


22.26 | 0 komentar | Read More

New FHA rules making condos no-lending zones

WASHINGTON — For young first-time buyers, people with modest down payment cash, or seniors who want to tap their equity using a reverse mortgage, it's a growing problem: They cannot use Federal Housing Administration financing in condominiums.

It's not that these buyers and unit owners can't qualify on credit and income grounds for a loan personally — they often can. Instead, it's because the entire condominium development is ineligible. As the result of policy changes at the federal level and decisions by condominium boards of directors, thousands of communities have essentially become prohibited lending zones for FHA in the past several years.

The agency has banned so-called "spot" loans and will only insure mortgages on units in condo projects that have passed a certification process that examines budgets, reserves, insurance coverage, percentage of renters compared with owners in the development and delinquencies on payment of condo fees.

FHA says that its revised procedures weed out fiscally weak, poorly managed developments and reduce taxpayer exposure to future losses. Condominium boards, on the other hand, argue that some of FHA's evaluation criteria are too strict and that the certification process is bureaucratic and costs them money they'd prefer not to spend.

Since toughening its financing rules and requiring certification of entire projects four years ago, the number of condo developments approved for FHA financing has plunged by more than half. As of mid-month, it stood at just 10,020 communities, according to an FHA spokesman. Industry sources estimate the total number of condo projects nationwide is around 144,000.

FHA financing is important because of the special niches it fills. Among the three major federal lending intermediaries — Fannie Mae and Freddie Mac are the other two — FHA is the most flexible on credit issues. It is also lenient on debt ratios and allows down payments as small as 3.5 percent.

As a result, FHA for decades has been the go-to mortgage option for moderate-income purchasers and has been a key resource for African-American and Latino buyers, many of whom have made their first purchase in a condominium development.

FHA also plays an outsized role in the reverse mortgage market for seniors 62 and older. Its insured reverse mortgage product accounts for more than 90 percent of all borrowing in that field, allowing seniors to extract needed cash from their home equity to support their retirement expenses.

But with the sharp decline in FHA-approved condominium projects, many buyers and unit owners are finding themselves financially frozen out. Equally troubling, unit owners who want to sell find the pool of potential buyers reduced — along with the market value of their property — because FHA mortgages are banned.

Seth Task of Berkshire Hathaway HomeServices Professional Realty in Solon, Ohio, said a condo unit client his firm represented recently was forced to sell for $10,000 below what she had been offered by a buyer who was pre-qualified for an FHA loan — a loss solely attributable to the condominium's non-certified status. Situations like this are becoming more frequent, housing industry experts say, and the lack of FHA financing eligibility for entry-level-priced condo units is partially responsible for the decline in first-time buyer participation in the real estate market.

But now a movement is getting underway to reverse this shrinkage. At this month's spring legislative conference of the National Association of Realtors here in Washington, California brokers and agents unveiled a campaign to convince condo boards to re-think their objections to FHA certification — for their unit owners' sakes.

The primary focus, said Mike DeLeon, president of the Orange County Association of Realtors, which debuted an educational video at the Washington conference, is to show reluctant condo boards of directors "the positive benefits" of certifying with FHA. The video stresses "keeping condo unit values at their highest" by widening the pool of potential purchasers; helping existing unit owners tap their equities for retirement; and the relatively low risk of default presented by today's FHA buyers.

For most condo developments the message is this: Give some thought to the issue. FHA certification has its complications and costs, but it could be more than worth the effort for your current residents and future business.


22.26 | 0 komentar | Read More

Private hospitals could take some pressure off VA

WASHINGTON — The Obama administration's decision to allow more veterans to get care at private hospitals could take some pressure off backlogged Veterans Affairs facilities struggling to cope with new patients from the wars on terrorism as well as old soldiers from prior conflicts.

Agreeing to recommendations from lawmakers, the administration has said it will allow more veterans to obtain treatment at private hospitals and clinics in an effort to improve care.

Veterans Affairs Secretary Eric Shinseki also said VA facilities are enhancing capacity of their clinics so veterans can get care sooner. In cases where officials cannot expand capacity at VA centers, the Department of Veterans Affairs is "increasing the care we acquire in the community through non-VA care," Shinseki said.

Lawmakers from both parties have pressed for this policy change as the VA confronts allegations about treatment delays and falsified records at VA centers nationwide.

The department's inspector general says 26 VA facilities are under investigation, including the Phoenix VA hospital, where a former clinic director says as many as 40 veterans may have died while awaiting treatment.

Officials also are investigating claims that VA employees have falsified appointment records to cover up delays in care. An initial review of 17 people who died while awaiting appointments in Phoenix found that none of their deaths appeared to have been caused by delays in treatment.

The allegations have raised fresh concerns about the administration's management of a department that has been struggling to keep up with the influx of veterans returning home from the wars in Iraq and Afghanistan, and Vietnam veterans needing more care as they age.

The directive announced Saturday should make it easier for veterans to get medical care at non-VA facilities, according to an agency spokeswoman.

The VA spent about $4.8 billion last year on medical care at non-VA hospitals and clinics, spokeswoman Victoria Dillon said. That amounts to about 10 percent of health care costs for the Veterans Health Administration, the agency's health care arm.

It was not clear how much the new initiative would cost, Dillon said.

Rep. Jeff Miller, R-Fla., chairman of the House Veterans' Affairs Committee, welcomed Shinseki's announcement but questioned why it took so long. Reports about the veterans at the Phoenix hospital surfaced more than a month ago.

"You've got an entrenched bureaucracy that exists out there that is not held accountable, that is shooting for goals, goals that are not helping the veterans," Miller said Sunday.

Sen. Bernie Sanders, I-Vt., chairman of the Senate Veterans Affair Committee, said: "I think it's unfair to blame Shinseki for all the problems. Can he do better? Yes."

Sen. John McCain, R-Ariz., has called for the VA to allow more veterans to receive medical care at private hospitals. House Minority Leader Nancy Pelosi, D-Calif., said this past week that she was open to the idea of medical care at private hospitals.

Miller and Sanders made their comments on CNN's "State of the Union."

___

Follow Matthew Daly: https://twitter.com/MatthewDalyWDC


22.26 | 0 komentar | Read More
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