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Starbucks scraps 'Race Together' campaign in stores after weeklong backlash

Written By Unknown on Senin, 23 Maret 2015 | 22.27

Starbucks CEO Howard Schultz announced the end of the company's "Race Together" campaign in stores on Sunday nigh,t via a memo to staff.

Employees will no longer be encouraged to write the slogan on customers' cups after a weeklong backlash aimed at the behemoth coffee chain's efforts to open up a discussion on race issues.

"I know this hasn't been easy for any of you – let me assure you that we didn't expect universal praise," chief executive Schultz wrote in a letter to staff and released by the company on Sunday. "We leaned in because we believed that starting this dialogue is what matters most."

After the campaign kicked off last week, Starbucks received widespread criticism, and Schultz even appeared on media to clarify that the company's intentions were to open up a dialogue on race — not offend anyone.

"This phase of the effort — writing 'Race Together' (or placing stickers) on cups, which was always just the catalyst for a much broader and longer term conversation — will be completed as originally planned today, March 22," Schultz wrote.

"Race Together" activities will go on as planned over the next few months, including open forum discussions and special sections in USA Today.

The company has also committed to hiring 10,000 disadvantaged youth in the next three years while also opening up new stores in minority communities.

2015 TheWrap news inc. All rights reserved.


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US home sales rebound slightly in February

WASHINGTON — Slightly more Americans bought homes in February, but tight inventories, affordability problems and nasty winter weather point to sluggish sales in the coming few months.

Sales of existing homes rose 1.2 percent last month to a seasonally adjusted annual rate of 4.88 million, a slight rebound after plunging in January yet still underperforming by historical standards, the National Association of Realtors said Monday.

The real estate market has hibernated through the first two months of 2015, creating the potential for a second straight year of weak buying activity.

Strong job growth and relatively low mortgage rates have failed to awaken buyers. Meanwhile, relatively few homes are being listed for sale and builders are mostly catering to the wealthiest slivers of the market. Sales are running below last year's pace of 4.93 million, which represented a 3.1 percent drop from 2013.

"The next couple months are some of the most critical of the entire year for housing and sluggish numbers may continue if inventory doesn't increase," said Bill Banfield, vice president of mortgage provider Quicken Loans.

Despite February's uptick, buying activity appears to have been slow coming into March because of a series of harsh winter storms. The weather last month shut down construction and hurt open houses, likely causing fewer signed contracts and put additional downward pressure on completed sales in March.

"Mother Nature will probably make her presence known more in March," said Jennifer Lee, a senior economist at BMO Capital Markets.

Housing starts plunged 17 percent in February, the Commerce Department reported last week. Buyer traffic also slipped last month, according to the National Association of Home Builders/Wells Fargo index. Mortgage applications slipped in March, according to the Mortgage Bankers Association.

Sales tumbled 6.5 percent last month in the Northeast, which was hammered hard by snow, the Realtors said. Home-buying was unchanged in the Midwest and increased in the South and West.

The recent storms have led several economists to expect a strong recovery in the coming spring months, when more buyers usually step up their search and sellers decide to list their properties.

Still, some homeowners are trapped by mortgage debt, making it unprofitable for them to sell. Their negative equity is a lingering aftershock from the recession and housing bust, limiting the supply of available homes on the market.

The real estate data firm Zillow reported last week that 16.9 percent of homeowners owe more on their mortgage than their homes are worth. In several metro areas including Philadelphia, Houston and Boston, that rate actually increased from the levels in the third quarter of 2014.

The Realtors reported Monday that just 4.6 months of supply was listed for sale, compared to a full five months a year ago.

That meager inventory has helped push up sales prices, creating additional affordability pressures despite strong monthly job gains averaging more than 200,000 for the past year.

Median home prices increased 7.5 percent over the past 12 months to $202,600, almost quadruple the pace of average hourly wage gains.

Sales to investors and for all-cash have also declined over the past year, while first-time buyers have yet to return. First-timers accounted for only 29 percent of home sales, compared to a historical average of 40 percent.

Nor have buyers responded much to the comparatively low mortgage rates.

Average 30-year fixed rates were 3.78 percent last week, according to the mortgage giant Freddie Mac. That average has plunged from a 52-week high of 4.41 percent, which should help to make housing more affordable.

Because of tight credit, few potential buyers have been able to take advantage of the low rates.

An Urban Institute index measuring credit availability found that lenders are taking fewer risks with mortgages, choosing buyers with high credit scores and providing them routine mortgages, rather than the exotic and opaque loans that inflated the housing bubble and led to the financial crisis.

The restricted credit "has been, and threatens to continue to be, a headwind for the housing recovery," said Michelle Meyer, a senior economist at Bank of America Merrill Lynch, in a client note.


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Humana selling Concentra unit for about $1.06 billion

LOUISVILLE, Ky. — Humana Inc. says it will sell its Concentra Inc. unit to MJ Acquisition Corp. for just under $1.06 billion in cash.

The Concentra unit, acquired by Humana in December of 2010, is a provider of occupational health, urgent care and physical therapy services.

MJ Acquisition is a joint venture between hospital operator Select Medical Holdings Corp. and Welsh, Carson, Anderson & Stowe XII, L.P., a private equity fund.

The sale is expected to close during the second quarter.

The health insurer said its 2015 profit outlook remains set at between $8.50 and $9 per share.

Humana is based in Louisville, Kentucky.


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After strong week, US stock gains slow in morning trading

NEW YORK — U.S. stock indexes are mixed in morning trading on Monday following a strong performance last week.

KEEPING SCORE: The Standard & Poor's 500 index edged up six points, or 0.3 percent, to 2,114 as of 10:15 a.m. The Dow Jones industrial average rose 63 points, or 0.3 percent, to 18,190 while the Nasdaq composite slipped two points, or 0.1 percent, to 5,024, not far from its all-time high, last seen during the dot-com bubble in 2000.

The S&P 500 jumped 2.7 percent last week, its biggest weekly gain since early February.

WARNING: Shares in Gilead Sciences fell following news that the pharmaceutical company told physicians that nine patients taking its hepatitis C treatments developed slow heartbeats and that one died. Gilead slid $1.96, or 2 percent, to $100.32.

EUROPE: Germany's DAX lost 1.3 percent and France's CAC 40 shed 0.8 percent. Britain's FTSE 100 was up 0.1 percent.

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

ASIA'S DAY: The Shanghai Composite Index rose 2 percent points and Tokyo's Nikkei 225 gained 1 percent. Hong Kong's Hang Seng added 0.5 percent.

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

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

CRUDE: Benchmark U.S. crude rose 23 cents to $46.80 a barrel in New York.

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


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Investigation prompted by alleged rape story to be released

CHARLOTTESVILLE, Va. — Police plan to release the findings of an investigation prompted by a Rolling Stone article about an alleged gang rape at a University of Virginia fraternity house.

Charlottesville police have scheduled a news conference for 2 p.m. Monday. A notice posted on the police department's website says officials won't answer any questions before the news conference.

The November 2014 article described an alleged gang rape at a fraternity house in 2012. Rolling Stone has since apologized for the article and noted discrepancies.

The police department said in January that investigators had been unable to confirm that a gang rape occurred at the fraternity house. However, a police spokesman emphasized at the time that did not mean an assault did not occur.


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Icy return of boats not all its quacked up to be

Written By Unknown on Minggu, 22 Maret 2015 | 22.27

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

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

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

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

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

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

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

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


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

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

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

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

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

___

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

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

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

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

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

___

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

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

___

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

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

___

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

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

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

___

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

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

___

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

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

___

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

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

___

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

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

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

___

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

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

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

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

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

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

___

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

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

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

Medicare's long-term future remains uncertain.

___

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

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


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Techies snatching up more real estate in Southern California

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

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

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

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

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

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

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

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

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

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

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


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Fed rate hike to have big impact

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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Some slow to embrace FASTR

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

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

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

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

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

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

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

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


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