NEW YORK -- Cotton futures No. 2 closed $1.50 a bale lower to $15.00 higher Thursday.
The average price for strict low middling 1 & 1-16 inch spot cotton advanced 300 cents to 86.61 cents per pound Thursday for the seven markets, according to the Market News Branch, Memphis USDA.
CHICAGO -- Grain futures were higher Thursday in early trading on the Chicago Board of Trade.
Wheat for May delivery was unchanged at 6.4250 a bushel; May corn was 7 cents higher at 4.89 a bushel; May oats were unchanged at 4.7350 a bushel; while May soybeans was 14 cents higher at 14.3450 a bushel.
Beef lower and pork was higher on the Chicago Mercantile Exchange.
April live cattle was .62 cent lower at $1.4305 a pound; May feeder cattle was 1.00 cents lower at 1.7370 a pound; April lean hogs gained 1.18 cent to $1.1190 a pound.
BILLINGS, Mont. -- Federal regulators offered more details on testing requirements for oil transported by rail on Thursday and warned companies against skirting the rules after a spate of explosions caused by crude train derailments in the U.S. and Canada.
The new order from the U.S. Department of Transportation builds on a Feb. 25 declaration that the industry's unsafe handling practices have made crude shipments an imminent hazard to public safety and the environment.
Testing already was broadly required to gauge the volatility of oil, one of hundreds of hazardous materials subject to federal oversight. But there were no standards on how frequently that testing had to be done or on what parameters companies must follow.
Transportation Secretary Anthony Foxx said in Thursday's order that within the "reasonable, recent past" companies must have tested the flash point and boiling point of crude. Such tests help determine how likely the fuel is to ignite and dictates what type of rail car can be used for shipments.
Officials also warned companies not to re-label crude as a more generic category of flammable liquid in an attempt to get around the testing.
What constitutes "reasonable" would depend on the circumstances, according to the Transportation Department's Pipeline and Hazardous Materials Safety Administration. For example, if a company could show that its product consistently displayed the same characteristics over time, then that would be considered as reasonable, agency spokeswoman Jeannie Shiffer said.
Regulators did not define what time period was covered by "recent past."
There's been intense political and public pressure to make oil trains safer since a runaway train with 72 tank cars of North Dakota oil derailed and exploded in Lac-Megantic, Quebec, near the Maine border in July. Forty-seven people were killed and 30 buildings destroyed. Oil trains also have exploded and burned in Alabama, North Dakota and New Brunswick in recent months.
Unlike most hazardous materials that come from chemical plants or other manufacturing sources, crude oil is not refined before being loaded onto trains and its properties can vary greatly among shipments.
Larry Bierlein, a Washington, D.C. attorney specializing in hazardous materials regulations and general counsel for the Association of Hazmat Shippers, says that creates a "shifting target" for how to properly handle the fuel.
But Bierlein added that regulators were setting up companies for failure with the recent orders on testing, by leaving them too vague.
"They've weaseled out of this by saying it's your job to classify this (oil) properly and if you have an incident then the vast amount of time you must have violated the rules," Bierlein said.
Failure to comply with the order would subject companies to civil penalties of $175,000 per day for each violation.
Total U.S. money market mutual fund assets fell by $4.08 billion to $2.68 trillion for the week that ended Wednesday, according to the Investment Company Institute.
Assets in the nation's retail money market mutual funds increased by $170 million to $916 billion, the Washington-based mutual fund trade group said Thursday. Assets of taxable money market funds in the retail category fell $330 million to $721.31 billion. Tax-exempt retail fund assets rose by $500 million to $194.69 billion.
Assets in institutional money market funds fell by $4.25 billion to $1.764 trillion. Among institutional funds, taxable money market fund assets fell by $4.81 billion to $1.687 trillion. Assets of tax-exempt funds rose by $570 million to $76.23 billion.
The seven-day average yield on money market mutual funds was unchanged at 0.01 percent from the previous week, according to Money Fund Report, a service of iMoneyNet Inc. in Westborough, Mass. The seven-day compounded yield was flat at 0.01 percent.
The 30-day yield and the 30-day compounded yield were both unchanged at 0.01 percent, Money Fund Report said Wednesday.
The average maturity of portfolios held by money market mutual was unchanged at 46 days from the prior week.
The online service Bankrate.com said its survey of 100 leading commercial banks, savings and loan associations and savings banks in the nation's 10 largest markets showed the annual percentage yield available on money market accounts was unchanged from the week before at 0.11 percent.
The North Palm Beach, Fla.-based unit of Bankrate Inc. said Wednesday that the annual percentage yield available on interest-bearing checking accounts remained steady at 0.05 percent.
Bankrate.com said the annual percentage yield on six-month certificates of deposit was unchanged from a week ago at 0.15 percent. One-year CD yields were also flat at 0.23 percent, and the yield on two-year CDs was unchanged at 0.37 percent. The five-year yield was unchanged at 0.80 percent.
Today, President Obama delivered a statement on efforts to address the ongoing crisis in Ukraine from the Brady Press Briefing Room.
Since the Russian intervention, we’ve been mobilizing the international community to condemn this violation of international law and to support the people and government of Ukraine.
This morning I signed an executive order that authorizes sanctions on individuals and entities responsible for violating the sovereignty and territorial integrity of Ukraine, or for stealing the assets of the Ukrainian people.
According to my guidance, the State Department has also put in place restrictions on the travel of certain individuals and officials. These decisions continue our efforts to impose a cost on Russia and those responsible for the situation in Crimea. And they also give us the flexibility to adjust our response going forward based on Russia’s actions.
Watch the full statement, or read the remarks here.
BEIRUT: A number of Beirut hotels have agreed to inform a prominent Lebanese security apparatus about suspicious occupants, security sources told The Daily Star Thursday.
The move comes amid a wave of suicide bomb attacks in the country. The two bombers who struck the Iranian Embassy in Beirut last November spent their final night in an upmarket hotel in the capital.
Speaking on condition of anonymity, the sources said that as a result of the agreement, the security body was informed about three residents from the Bekaa Valley town of Arsal who had checked into one of Beirut’s luxury hotels Tuesday. Two of them were from the Hujeiry family and the third was from the Fliti family.
Upon contacting the public prosecutor’s office, members of the security body were told that under the law another security agency had the right to arrest and interrogate the three suspects, and had already done so.
The suspects were detained for one day, but were released when interrogations indicated they were not involved in preparing for any terrorist attacks or other illegal acts.
According to the sources, other security bodies were surprised that the three were freed so quickly, expressing irritation that the security apparatus that arrested and questioned them had dealt with the matter so hastily. The same security bodies voiced their fear that a suicide bomb attack could happen in Lebanon before the end of the week as a result.
The bulk of recent suicide attacks in Lebanon have occurred in Beirut’s southern suburbs and the Bekaa Valley town of Hermel, both areas associated with Hezbollah.
The attacks have been mostly claimed by Syrian rebel groups, who argue that the violence is retaliation for Hezbollah’s involvement in the Syrian war alongside President Bashar Assad.
BEIRUT: Expected rains next week will do little to soften the blow from a markedly dry winter, experts told The Daily Star. “The water crisis will continue,” Michel Frem, head of the Lebanese Agricultural Research Institute, said.
Farmers can expect some respite next week, however. Frem says that heavy rains are predicted to start on March 9 and possibly last through March 15.
“These rains are good for the crops, but they are not enough to solve the drought problem in Lebanon,” Frem said.
Mona Chahine Khauli, who leads the Nicholas Chahine weather station, says that unusual weather patterns have contributed to the excruciatingly dry year.
“This year has been unusual. We’ve had cold fronts since October repeatedly, one after the other, and this has curtailed the rain. When it [the rain] should have gone for three or four days, it stopped after just one,” she explained.
Khauli hopes that some of the precipitation deficit will be made up in the coming months.
“My prediction is that we will have more rain in the spring,” she said, cautioning that it was nearly impossible to predict rainfall more than 48 hours in advance.
According to statistics on the weather station’s website, just 169 mm of rain has been recorded in the Ras Beirut area since Jan. 1. By contrast, the area had already received 315 mm of rain by this time last year.
Energy Minister Arthur Nazarian issued a memorandum Thursday addressing the water shortage issue.
The memorandum directs all state agencies, farmers, industrialists and citizens to take steps to cut water consumption and spells out several short-term steps to cope with the drought.
Among the strategies recommended in Nazarian’s memorandum is raising public awareness to conserve water resources.
Another recommendation calls on Lebanon’s departments of water resources to provide water to new residential complexes to cut down on the number of new wells, which deplete groundwater.
The advisory also urges homemakers, who it said use the most water, to reduce unnecessary water consumption, particularly when showering or washing the dishes.
“We need to sensitize people to the needs of conserving water at home,” Khauli agreed.
Families should reuse water as much as they can, she added: “Wash your vegetables, then use that water to clean the balcony.”
Because Lebanon lacks sufficient infrastructure, individuals should consider collecting rainwater on their rooftops for nondrinking purposes, Khauli suggested.
“It’s very easy,” she said of the process involved in installing a water collection tank.
In his memorandum, Nazarian says global warming is at least in part to blame for the drought.
“ Lebanon is exposed to climate changes, including global warming, which are specifically affecting the quantify rainfall,” the memorandum stated.
Extreme weather patterns, which some experts attribute to climate change, have been seen throughout the world this year. The United Kingdom has experienced one of the wettest winters on record, while the Western United States has seen extreme drought.
With regard to climate change, “the concern is global,” Khauli said.
SIDON, Lebanon: The Israeli army launched an observation balloon Thursday morning to survey the area over the town of Metula, a week after Hezbollah vowed to retaliate for an Israeli air raid. The observation balloon was seen equipped with sophisticated spying gear enabling it to survey the border areas and the orchards adjacent to Metula, as well as the area between the Lebanese border towns of Kfar Kila and Adaisseh and the main road that connects them. A drone was also seen flying over the area.
Consequently, the Blue Line separating Lebanon and Israel witnessed cautious calm as the Israeli army maintained its readiness after going on high alert for a week in anticipation of a retaliatory response from Hezbollah, after the Israeli air raid on Feb. 24.
Israeli airstrikes hit a Hezbollah target inside Lebanon near the Syrian border last week, a rare attack on Lebanese soil.
Hezbollah vowed to retaliate, saying: “The resistance will choose the right time and place as well as the appropriate response method.”
Although Israeli officials did not directly confirm the attack, Prime Minister Benjamin Netanyahu has said his government was doing “everything necessary” to protect the country.
Israel’s army also said it struck two Hezbollah fighters Wednesday as they were planting a bomb near the Israeli-Syrian frontier.
In anticipation of the attack, Thursday saw a lack of Israeli border patrols across the barbed-wire fence, and the orchards adjacent to the technical fence were also free of agricultural workers who typically come out to prune the fruit trees this time of year.
Meanwhile, the Lebanese Army and UNIFIL peacekeepers in the south observed the balloon and held joint patrols on the Blue Line stretching from Adaisseh to the Marjayoun plains. They also witnessed an Israeli patrol that was stationed by cold storage apple trucks in Metula while waiting for buses carrying Israelis who were visiting parks located in Wadi Nabeh al-Kharar, east of the Israeli town.
BEIRUT: Dean of Student Affairs at AUB Talal Nizameddin signed Thursday a student petition calling for tuition increases to stop. Crouching down to sign the banner unfurled across one of the University’s main thoroughfares, Nizameddin joined hundreds of students worried that a proposed tuition increase would be prohibitive for their families.
“I felt my heart was with the students’ demands for the fact that the tuition increase hurts a lot of families,” he told The Daily Star.
Much of the faculty sympathizes with the students, Nizameddin added. “Most of the faculty that I’ve heard [from] have been understanding of the students’ concerns. They feel that these are difficult times in Lebanon and the region and families are hurting.”
While AUB President Peter Dorman has assured students that the university’s financial aid program will expand with tuition hikes, Nizameddin said many remain wary.
“The concern is that the ... increases will be faster than the support the university can give.”
Many are concerned that tuition increases will ultimately result in a more homogenous student body.
“I’m personally worried about it,” Nizameddin said of diversity among the student body.
Students have called for a daylong strike on March 11. A flyer distributed at the petition signing publicized the boycott and “a series of actions/movements spread in the following two weeks.”
Some who are unaffected by the tuition increase have also expressed their support for the strike.
Seba Sadr, who is set to graduate this semester, says the legacy of the university is at stake.
“Students here who can no longer afford the tuition are going to be suffering. The administration should not let their students down,” she told The Daily Star at the petition signing.
Sadr said she would “absolutely” strike with the students.
“It’s getting too much,” Ghia al-Rifai said of tuition fees at AUB. “Not everyone can afford it, but it’s supposed to be a university ‘for all classes,’” she added, summarizing sentiments expressed by the university’s founder Daniel Bliss.
Rifai said that she would support next Tuesday’s strike.
But it seems misinformation and perhaps a lack of communication are plaguing the dialogue between students and the administration.
Rumors that some university tuition fees would be used to cover some of the costs of the AUB hospital (AUBMC) also raised the ire of the student body.
“We’re paying for the debt that AUBMC has to go through and we’re also paying for the AUBMC employees,” said Nour, a student at the petition signing.
While elected student officials say members of the administration confirmed wage increases for AUBMC staff would be covered by the tuition hike at AUB, Dr. Ziyad Ghazzal, deputy vice president of the university’s Faculty of Medicine, categorically denied the claims.
“AUB student tuition fees do not subsidize the medical center operation, which has its own operating budget,” he told The Daily Star.
Meanwhile, Dorman issued a letter to the AUB community Thursday, announcing two working groups that would examine the university’s expenditures and revenue streams.
The first commission, comprised of deans, professors and the university’s Chief Financial Officer Drew Wickens, will continue to “look specifically at scenarios and alternatives to the projected 6 percent tuition increase for the upcoming academic year.”
The second commission will “identify areas of savings and efficiencies ... suggest alternate sources of revenue for the university, and propose a sustainable plan for financial prudence in our budgets going forward.”
“Student representation on both bodies is essential,” Dorman added.
Currently, more student tuition fees account for more than 85 percent of the university’s budget.
“We need to find a way to move forward together. A unified approach is our best and only solution for resolution,” Dorman’s email concluded.
BEIRUT: A march aimed at raising awareness about suicide and remembering those who have succumbed to mental illness is set to take place this weekend, the first such event in Lebanon, where suicide is not just overlooked but is a taboo issue. The event, organized under the slogan “Into the Dawn,” is to take place from 5:45 a.m. to 7:45 a.m. Sunday, March 9. Farah Yehia, a member of Embrace Fund, which is coordinating the march, said it was being held early in the morning because of its representational significance.
“Into the Dawn is symbolic,” said Yehia, who is also the mental health advocacy coordinator in the American University of Beirut Medical Center’s psychiatry department. She said that with the help of treatment, many victims of clinical depression aim to get “out of the darkness and into the dawn to get better.”
Organizers hope the walk will bring together those who have lost loved ones to suicide or who have themselves battled suicidal thoughts, as well as breaking the stigma associated with suicide.
Embrace Fund, which functions as part of AUBMC, was launched last October and aims to create a better understanding of mental illness in Lebanon, where disorders are often either kept secret or are not properly addressed.
The organization also raises funds toward the costs of psychiatric treatment for those who cannot afford it, as there are currently no health insurance policies in Lebanon that cover any form of mental illness, and treatment is often expensive.
The walk will start at the seaside gate of AUB’s Charles Hostler Student Center, and will pass the Intercontinental Vendome Hotel in Ain al-Mreisseh. Proceeds will contribute to funding an emergency hotline for those contemplating suicide, a service that is currently non-existent in Lebanon.
According to Dr. Ziad Nahas, co-founder and chairman of the Department of Psychiatry at AUBMC, those struggling with suicidal intentions suffer from a lack of options. “It’s a dire situation,” he said.
“Suicidal individuals usually feel very isolated, and if their case is not addressed, it can continue weighing heavily on them,” he told The Daily Star.
Those suffering from mental illness feel too ashamed or afraid to seek psychiatric help, although specialists claim mental illness is no different from other diseases like cancer or heart conditions.
“Mental illness is not recognized as a serious illness, and people still perceive it as something shameful,” Nahas said.
Consequently, there are no statistics to account for the number of people suffering from mental illness in Lebanon, and the only available figures are estimates based on data from neighboring countries.
The World Health Organization’s global burden of disease study estimates that each year 3.3 percent of people take their own lives in Lebanon. According to the Institute for Health Metrics and Evaluation, the death rates attributed to self-harm and mental or behavioral disorders in Lebanon were 2.14 per 100,000 people and 1.72 per 100,000 people, respectively, as of 2010. This means that each year up to 152 Lebanese die from suicide.
The march aims to “de-stigmatize suicide,” Nahas said. It will culminate with participants gathering in a circle to share their experiences, which will include the story of Nahas’ own wife, Michella Nahas, as a form of “collective catharsis.”
Embrace Fund is adamant on spreading the word about mental illness, and suicide in particular, in order to start a dialogue, and while few people are expected to attend Sunday, those present will be enough, Nahas said.
“I think if 40 or 50 people show up as a start, it would be a wonderful thing,” he added.
“We hope that this will be an example, one that will resonate.”
BAALBEK, Lebanon: A Syrian warplane fired one missile into the outskirts of the northeastern Lebanese border town of Arsal for the second day in a row Thursday, a security source told The Daily Star.
The source said the missile landed in a remote area on Arsal’s edge. No casualties were reported.
On Wednesday, Syria launched a series of airstrikes targeting remote areas in the Bekaa Valley border town of Arsal. The airstrikes on Ras al-Sirj and Iqbit al-Mbaida, located along Arsal’s outskirts, did not cause any casualties, security sources had said.
The mountainous region around Arsal has long been used as smuggling route to arm Syrian rebels and transport fighters across the border.
Syrian airstrikes have intensified since President Bashar Assad’s forces launched a military campaign to seize the rebel-held Syrian town of Yabroud, which is close to Arsal.
Yabroud is considered a major rebel supply hub, leading to Arsal in northeastern Lebanon where the majority of the population supports the opposition.
CEDAR FALLS, Iowa -- Students at the University of Northern Iowa have managed to significantly reduce average student debt by taking advantage of a federal program that requires them to teach a high-need subject at a school in an impoverished neighborhood.
The Teacher Education Assistance for College and Higher Education grant offers $4,000 per year — up to $16,000 over four years — to students who follow the unique requirement. The grant converts to a loan with retroactive interest if a student doesn't fulfill the four-year requirement within eight years of graduation.
The average UNI graduate last year had about $23,000 in debt, the Des Moines Register reported (http://dmreg.co/1hQsJzM ), down from about $26,000 three years ago. Officials say that's due to wide use of the grant, as well as factors like mandatory in-person counseling before students take out a private loan.
UNI officials say more than 600 students have received $2.3 million through the program this year — the fourth-highest number of recipients in the nation. Iowa State University in Ames has 116 students with the grant, and the University of Iowa in Iowa City has 10.
UNI graduate Jacob Bruns, 22, saved at least $10,000 in loans through the program. He graduated in December and is still looking for work. He called the money savings a huge help.
"I understand the reservations about accepting the grant. If you end up not teaching, it will really come back to bite you on the butt," he said. "But if you fulfill the requirements, it's free money."
Joyce Morrow, UNI financial aid director, said the grant's requirements are one reason it isn't used in more schools. But officials say the program works well at UNI because it attracts students who know what they want.
"There are a lot of students here who know they want to teach," said Dwight Watson, the UNI College of Education dean. "They're not there to explore a major."
The newspaper reported that UNI is in its fifth year of offering the program. Officials are optimistic with the results so far: More than 80 percent of the grants are in good standing.
Surprise! Turns out smoking your martini like crack is actually not such a good idea, warn English firemen.
The Vaportini, a vaporizer for alcohol that looks like something Jesse should have been sucking on in Breaking Bad, is alleged to be the latest rage in getting yourself all kinds of legally fked up. Basically, it cuts out the middlemen -- calories, liquid, your digestive tract -- and mainlines pure booze straight to your dome. The delivery system known as “booze” has been completely eradicated, or at least simply reduced to a catalyst.
The aforementioned firemen are concerned that faded folks shouldn’t be playing with open flames and flammable vapors and, of course, they’re right. Potential accidental inferno engulfment is but one of the issues we take with this device, however.
The main marketing push of the Vaportini is that it helps you regulate how wasted you get, since the “effects are immediately felt.” Well, that’s great and all, but didn’t they just take what is supposed to be a social pastime and turn it into the equivalent of shooting up in the bathroom? If you’re the type of person who starts powering through adult beverages at a rate where you consistently don’t recognize how drunk you are, you probably shouldn’t be smoking your vodka, you should be seeking some help.
There’s one other thing to consider before jumping on the bandwagon and wheezing on 151 in the corner of your local pub.
Drinking is already perfect.
Our culture has dedicated generations to concocting the finest in spirits. Mixing the perfect cocktail has been elevated to an art form, and there are varietals of alcohol to suit every taste. We gather in bars and clubs, talking and flirting and unwinding, networking for love and business over the clinking of ice in a glass or crisp smell of hops, guided by the warm empathy alcohol provides. Having a drink with someone is a way to mend fences, bridge gaps, tighten bonds. When you reduce the activity to a group of people huddled around a hot chalice huffing at haze through straws, the romantic aspect rapidly slips away. You’re not having a drink, you’re getting your fix. There’s nothing remotely classy about it. You want to huff vapor with somebody, there’s a time and place for that: right before the band takes the stage, and then certainly not with booze, no matter how organic.
As a wise man once said, “If it ain’t broke, don’t fix it.” Or was it "sniff it?" Either way.
The Senate has blocked a bill introduced by Sen. Kirsten Gillibrand, which had proposed revisions to military procedures for punishing and preventing sexual assault.
The Conservative Political Action Conference, an annual gathering of conservative activists, routinely attracts big names in the Republican party — and this year's no different. It starts Thursday.
Several Texas abortion clinics are shutting down Thursday, in part due to restrictions passed by state lawmakers. They join a growing list of clinics that have closed since the law was passed.
With an executive order Thursday, President Obama authorized sanctions on Russia for its involvement in Ukraine. Speaker Boehner praised the sanctions and offered congressional support going forward.
hide captionAmericans for Prosperity Foundation Chairman David Koch addresses attendees of the Defending the American Dream Summit in Orlando, Fla., Friday, Aug. 30, 2013.
Americans for Prosperity Foundation Chairman David Koch addresses attendees of the Defending the American Dream Summit in Orlando, Fla., Friday, Aug. 30, 2013.
The loudest voice taking on vulnerable Senate Democrats right now is not the Republican party, but Americans for Prosperity, a conservative group founded by the billionaire Koch brothers.
hide captionSen. Kirsten Gillibrand (D-NY) pauses while speaking at a news conference on Capitol Hill in Washington, on Thursday following the Senate vote on the military sexual assaults bill she sponsored.
Sen. Kirsten Gillibrand (D-NY) pauses while speaking at a news conference on Capitol Hill in Washington, on Thursday following the Senate vote on the military sexual assaults bill she sponsored.
The Senate has voted to block a bill that would have removed the authority of senior military commanders to prosecute sexual assault cases within their ranks.
On Thursday's 55-45 vote, short of the 60 necessary to move the legislation forward, the Senate set aside the Military Justice Improvement Act sponsored by New York Democratic Sen. Kirsten Gillibrand.
USA Today says the bill "would take away military commanders' authority to decide whether to prosecute sexual assault cases — and other offenses punishable by at least one year in jail — and give it to prosecutors in the Judge Advocate General's office."
The Associated Press writes:
"The Pentagon's leadership vigorously opposed the measure, arguing that officers should have more responsibility, not less, for the conduct of the men and women they lead."
"Proponents of the bill insisted that far-reaching changes in the Uniform Code of Military Justice are necessary to curb a scourge of rapes and sexual assaults."
"Gillibrand's effort bitterly divided the Senate in a battle that smashed conventional lines on gender and political party."
Conservative Sens. Ted Cruz of Texas and Rand Paul of Kentucky backed her effort, but as NPR's Liz Halloran reported last month, it faced opposition from powerful fellow Democrats, including Sen. Claire McCaskill and Armed Services Committee Chairman Sen. Carl Levin, as well as the president himself.
The AP says: "Although the vote sent the bill back to the Senate calendar, it was unlikely to be the final word. Gillibrand was expected to pursue the issue this spring when the Armed Services Committee begins work on a sweeping defense policy bill for the 2015 fiscal year."
Gillibrand's legislation comes amid a rash of high-profile sexual assault and sexual misconduct cases in the ranks, prompting President Obama in December to order a one-year review of the military's response to the problem. On Thursday, Army Brig.-Gen. Jeffrey Sinclair pleaded guilty to adultery before a court-martial in North Carolina, but still faces a charge of sexually assaulting a female captain.
LAKE CHARLES, La. -- Officials say a 10-year, 0.62-mill property tax renewal, one of several items on the April 5 ballot, is necessary to continue funding operations at Lake Charles Regional Airport.
Heath Allen, the airport's executive director, tells the American Press (http://bit.ly/1eOXZNb) the tax accounts for about 30 percent of the airport's yearly budget and that it would generate nearly $690,000 a year. The other 70 percent of the budget is funded through private leases at the airport, including 28 tenants.
He says it's the lowest ad valorem in the parish for any public body.
The Associated Press
WASHINGTON -- A surging stock market and rebounding home prices boosted Americans' wealth to a record in the final three months of last year, though both trends have slowed so far in 2014.
Household net worth jumped nearly $3 trillion during last year's fourth quarter to $80.7 trillion. Stock and mutual fund portfolios gained nearly $1.7 trillion, or 9 percent, according to a Thursday report by the Federal Reserve.
The value of Americans' homes rose just over $400 billion, a 2 percent gain. And checking account balances, pensions plan assets and retirement savings, such as 401(k)s, also increased.
Strong wealth gains tend to trigger more consumer spending, a critical fuel for economic growth. Higher household net worth is one reason economists have forecast that the U.S. economy will accelerate later this year.
Household wealth, or net worth, reflects the value of homes, stocks, bank accounts and other assets minus mortgages, credit cards and other debts.
Last year, home prices nationwide rose by the most in eight years. And the Standard & Poor's 500 index of large stocks jumped 32 percent. So far this year, home-price gains have slowed, and the S&P 500 has risen just 1.4 percent.
Rising home prices are helping people rebuild ownership stakes in their homes. The equity that Americans as a whole have in their homes has reached 51.7 percent, the highest point since before the recession began. That's up from a record low of 36.5 percent in the first three months of 2009.
The Great Recession hammered Americans' net worth, cutting their overall wealth to $55.6 trillion in the first quarter of 2009. That was 19 percent below the pre-recession peak of $68.8 trillion.
U.S. wealth has since recovered. But households haven't benefited equally. Much of the rebound stems from stock market gains. Yet roughly 10 percent of households own about 80 percent of stocks. Most middle-class wealth stems from home ownership, and house prices nationwide remain below the peak reached in the spring of 2006.
The Fed's figures aren't inflation-adjusted and don't account for population growth.
Last month, economists at Ohio State University adjusted for both factors and concluded that, as of mid-2013, the net worth of the average U.S. household is still 14 percent below the pre-recession peak.
Still, rising wealth and an improving economy are encouraging more Americans to take on debt, which can be a sign of confidence. Total household debt ticked up 0.4 percent in the quarter, mostly because Americans took out more auto and student loans.
But that doesn't mean consumers are returning to pre-recession habits of building up excessive debt. Mortgage debt fell last quarter, as it has in almost every quarter for the past five years.
And after-tax income is ticking up, making it easier for Americans to finance their debts. Total household debt as a percentage of income was largely flat in the fourth quarter compared with the previous three months, at 109 percent. But that's down from a peak of 135 percent at the end of 2007, just before the recession.
LAFAYETTE, La. -- Lafayette home health provider LHC Group reported fourth-quarter earnings dropped to $5 million, or 29 cents per share, compared with $7.4 million, or 43 cents per share, a year earlier.
The Advocate reports (http://bit.ly/1hOOgcM ) LHC's fourth-quarter revenue grew 2.1 percent to $165.3 million.
For the year, LHC reported earnings of $22.3 million, or $1.30 per share, compared with $27.4 million, or $1.53 per share, in 2012.
The company's 2013 revenue rose to $653.8 million from $637.6 million a year earlier.
LHC Chairman and Chief Executive Officer Keith G. Myers said the company was pleased with its results and performance.
NEW YORK -- Three former leaders of a once-potent New York law firm are facing fraud charges stemming from its collapse.
Manhattan District Attorney Cyrus R. Vance unveiled the criminal case Thursday in what was the nation's biggest law firm bankruptcy.
The defendants are former Dewey & LeBouef (luh-BUHF') LLP chairman Steven Davis, former chief executive Stephen DiCarmine and former chief financial officer Joel Sanders. They are awaiting arraignment.
The men's lawyers say their clients committed no crimes and worked hard to try to save the firm after the 2008 financial crisis.
Vance says the three conspired to cook the firm's books from 2008 until its 2012 implosion. Vance says they misled auditors and even their own partners.
Vance says seven ex-Dewey employees have pleaded guilty.
Dewey once employed 3,000 people worldwide.
The share of Miami-area mortgaged residences that are underwater fell to 29.8 percent, or 136,580 residences, in the fourth quarter of 2013, according to CoreLogic.
That compared with 32.4 percent or 150,274 properties in the Miami area in the third quarter owing more on mortgages than their market value, the Irvine, Calif.-based data firm said.
Still, the rate of negative equity in the area including Miami, Miami Beach and Kendall was more than twice the national rate of 13.3 percent in the fourth quarter.
Another 3.1 percent of Miami area homes had less than 5 percent equity.
For the fourth quarter of last year, 28.1 percent of the mortgaged residences in Florida were underwater, ranking the state No. 2 behind Nevada, which had 30.4 percent of its mortgaged residences in negative equity, CoreLogic said. Another 3.6 percent of Florida’s mortgaged residences had less than 5 percent equity.
WASHINGTON -- The Republican-controlled House moved Thursday to block President Barack Obama's plan to limit carbon pollution from new power plants, an election-year strike at the White House aimed at portraying Obama as a job killer.
Ten coal-state or Southern Democrats joined with Republicans to approve the bill, 229-183. Supporters said the measure was part of a strategy to fight back against what they call the Obama administration's "war on coal."
Obama's proposal, a key part of his plan to fight climate change, would set the first national limits on heat-trapping pollution from future power plants.
A measure sponsored by Rep. Ed Whitfield, R-Ky., would require the Environmental Protection Agency to set carbon emissions standards based on technology that has been in use for at least a year. Republicans and some coal-state Democrats say the EPA rule is based on carbon-capturing technology that does not currently exist.
Whitfield, chairman of a House subcommittee on energy and power, called the power plant proposal "one of the most extreme regulations of the Obama administration," adding that it would "make it impossible to build a new coal-fired power plant in America."
Rep. Henry Waxman, D-Calif., denounced the measure as "a science-denial bill" that would strip the EPA of its ability to block carbon pollution. Waxman and other Democrats said the bill was a blatant attempt to thwart the EPA and villify the Obama administration in an election year.
The White House has threatened to veto the measure, saying it would "undermine public health protections of the Clean Air Act and stop U.S. progress in cutting dangerous carbon pollution from power plants." Power plants account for about one-third of U.S. emissions of carbon dioxide and other greenhouse gases that contribute to global warming.
EPA Administrator Gina McCarthy and other officials have said the proposed rule — the first of two major regulations aimed at limiting carbon pollution from power plants — is based on carbon reduction methods that are "technically feasible" and under development in at least four sites. The rule affecting future plants is a prelude to a more ambitious plan, expected later this year, to control carbon pollution at existing power plants.
In January, McCarthy told the Senate Environment Committee: "We looked at the data available. We looked at the technologies. We made a determination that (carbon capture and storage technology) was the best system for emission reductions for coal facilities moving forward, because it was technically feasible and it would lead to significant emission reductions."
Whitfield and other critics dispute that, saying carbon capture technology is years away from being commercially viable.
The EPA rule would "mandate (emission) control technologies for power plants that are not yet commercially available, effectively banning new coal-fired power plants ... and setting a dangerous precedent that could cascade to other fuels," the National Association of Manufacturers said in a letter supporting Whitfield's bill.
But environmental groups said the bill would gut the EPA's authority to reduce carbon pollution.
"The bill sets up impossible tests for any EPA standard reducing carbon pollution to meet and allows utilities to decide what regulations will be for new power plants — effectively delaying the best emissions reductions technology for years or even decades," the League of Conservation Voters said in a letter urging lawmakers to oppose the bill.
While Whitfield's bill easily cleared the Republican-controlled House, the fate of a companion measure sponsored by Sen. Joe Manchin, D-W.Va., is less certain.
Manchin has said his bill would ensure that pollution standards imposed by the EPA are realistic, calling the current proposal "unattainable under today's technology."
A spokesman for Manchin said Thursday that the senator plans to meet with Senate Majority Leader Harry Reid and other Democrats to discuss a path forward for the bill.
WASHINGTON -- Orders to U.S. factories fell in January for a second straight month but a key category that signals business investment plans rebounded. That could be an indication that businesses are becoming more confident.
Factory orders dipped 0.7 percent in January, the Commerce Department reported Thursday. That followed an even bigger 2 percent decline December, which was a larger decrease than first reported and the biggest decline since July. The weakness in both months was led by large declines in demand for commercial aircraft.
Orders for core capital goods, a proxy for business investment, rose 1.5 percent in January, recovering after a 1.6 percent drop in December.
Demand for durable goods, items expected to last at least three years, were down 1 percent in January while non-durable goods orders slipped 0.4 percent.
The estimate for durable goods was unchanged from a preliminary report. The weakness reflected a 20.2 percent plunge in orders for commercial aircraft, a drop that followed an even bigger 22.3 percent fall in December. Orders for motor vehicles and parts fell 0.9 percent, the second straight decline. Analysts say weakness in this area will be reversed given expectations for continued gains in new car sales.
Orders for primary metals such as iron, steel and aluminum, dropped 1.2 percent while demand for machinery was down 0.7 percent and computer orders fell 46 percent.
Many economists say that manufacturing has gone through a soft patch but will be emerging to stronger growth in coming months.
That expectation is based on the view that the overall economy, after slowing in the final three months of last year and the first quarter this year, will rebound to stronger growth. Many economists are forecasting that the economy, as measured by the gross domestic product, could expand at an annual rate of around 3 percent in 2014, up significantly from last year's 1.9 percent gain.
Last year, growth was held back by higher taxes which dampened consumer demand and across-the-board spending cuts by the federal government. It is estimated those two factors cut growth by about 1.5 percentage points. However, those adverse impacts are now waning. With the labor market expected to keep expanding, the hope is that growth will reach the fastest pace since before the 2007-2009 recession.
The Institute for Supply Management, a group of purchasing managers, reported Monday that its closely watched manufacturing gauge rose to 53.2 in February, up from 51.3 in January.
The increase only partly reversed a five-point drop in January, but economists were encouraged that the direction was positive. Any reading above 50 indicates manufacturing is expanding.
For February, the index rose in part because of an increase in both new and backlogged orders. There was strength in other areas as well. Four of the 18 industries that are tracked by the survey reported growth.
CEDAR FALLS, Iowa -- A Cedar Falls lawmaker is pushing for legislation that would help low-income families pay for child burials.
The Waterloo-Cedar Falls Courier reports (http://bit.ly/1gV13rA ) Democratic Rep. Bob Kressig's bill would give qualifying individuals up to $2,000 for funeral expenses after the death of a child. The measure has been assigned to an appropriations subcommittee.
Kressig says the legislation was inspired by Sing Me to Heaven, a nonprofit group in northeast Iowa that raises money to help pay for such funerals. Group organizers say the cost of a funeral can range from $2,000 to $10,000 or more.
The bill would provide $100,000 to be administered through the state Department of Public Health. The amount is not expected to be used up within a year, and the funds would not necessarily be recurring.
NORTH LAS VEGAS, Nev. -- A company is dropping its bid to build a waste-burning gasification power plant in North Las Vegas.
The Las Vegas Review-Journal reports (http://bit.ly/1lBLJFW ) that a company representative told the City Council on Wednesday that that EP Renewable Inc. company was withdrawing its application.
Permit engineer Keith Brinkley cited neighbors' concerns about the facility off Losee (LOH'-see) and Lone Mountain roads.
Coral Springs, Fla.-based EP Renewable had proposed a plant costing more than $100 million to convert waste into electricity by burning tires and construction waste at extremely high temperatures.
Captured gases would be used to power a steam turbine.
Proponents had said the project could create 48 megawatts of electricity a day and provide almost 300 jobs.
Neighbors said they feared odors, air pollution, traffic and noise.
HARTFORD, Conn. -- When Connecticut struck a deal for up to $400 million in tax credits for United Technologies Corp., the sides said the company's helicopter and aerospace divisions would remain here "for years to come."
There was no imminent threat the aerospace divisions would relocate. But Economic Development Commissioner Catherine Smith said there were worries about gradual job losses.
She also said executives were clear they "would look around" as United Technologies considered a new building for jet engine maker Pratt & Whitney and upgrading its research and development site.
In the deal announced last week, United Technologies will spend up to $500 million at Pratt & Whitney in East Hartford, Sikorsky in Stratford and UTC Aerospace in Windsor Locks.
Pratt & Whitney headquarters will stay for 15 years and Sikorsky for at least five.
Today, President Obama will take part in a town hall at the Newseum in Washington, DC to discuss the Affordable Care Act and how the law benefits the Latino community. The town hall is hosted by Univision, Telemundo, impreMedia and the California Endowment.
The town hall, which will be televised and livestreamed in both English and Spanish, will provide an opportunity for Latinos across the country to learn more about how to enroll in affordable, quality health care via the Health Insurance Marketplace.
Tune in right here at 11:30 am ET to watch the town hall in English, or watch in Spanish here. You can join the conversation and submit questions on Twitter and Facebook using the hashtag #TuSaludyObama and #Asegurate.
ABU DHABI, United Arab Emirates -- Dozens of flights to the United Arab Emirates capital of Abu Dhabi were diverted Thursday after a technical malfunction during heavy fog led authorities to stop accepting incoming planes, according to the airport and its main airline.
Etihad Airways, the state-backed carrier that is the UAE's national airline, said all morning flights were redirected because of a "technical failure of the runway landing systems." The airport authority cited only operational challenges posed by low visibility conditions.
The malfunction happened as dense fog descended over much of the country, snarling traffic during the morning commute. The airport in nearby Dubai, the region's busiest air hub, reported delays but remained operational.
Abu Dhabi airport said 37 flights were diverted to several regional airports, some as far away as Dammam, Saudi Arabia, and Muscat, Oman.
Flight operations resumed later in the day, though Etihad said "significant delays" were expected to continue for some time.
Etihad, the main user of Abu Dhabi airport, and its larger competitors Qatar Airways and Dubai-based Emirates are growing rapidly and use their Gulf bases as major long-haul aviation transit hubs.
Abu Dhabi International Airport is undergoing a major expansion that includes the construction of a new terminal complex.
Morning fog is not uncommon along the UAE's Gulf coast during certain times of the year. In 2012, some 50 flights were diverted from Dubai International Airport after a backup system needed to deal with heavy fog failed.
NEW YORK -- Stocks moved higher in morning trading Thursday after the government reported that the number of people filing for unemployment benefits fell last week to the lowest level in three months. Kroger rose after reporting higher sales at its supermarkets.
KEEPING SCORE: The Standard & Poor's 500 index rose six points, or 0.3 percent, to 1,880 as of 10:45 a.m. Eastern. The Dow Jones industrial average rose 74 points, or 0.5 percent, to 16,434. The Nasdaq composite increased seven points, or 0.2 percent, to 4,364.
FEWER LAYOFFS: The number of people who filed for government unemployment benefits fell by 26,000 last week to 323,000. That was much better than the 337,000 claims economists had expected, according to FactSet, and a sign that fewer people are being laid off.
JOBS REPORT: Investors are looking ahead to Friday, when the government releases its monthly survey of the U.S. job market. Many expect that employers held back on hiring last month because of the severe winter storms that hit much of the country. Economists expect that employers added 145,000 jobs and that the unemployment rate held steady at 6.6 percent.
UKRAINE: Investors were keeping a close eye on Russia's military presence in the Ukrainian region of Crimea. The market plunged on Monday, then roared back on Tuesday as the rhetoric between Russia and the West escalated, then eased. Moscow-backed Crimean officials said Thursday that Crimea would hold a referendum in two weeks to decide whether it should be annexed by Russia. Any flare-up in tensions there would be sure to rattle markets again.
RINGING REGISTERS: Kroger rose 75 cents, or 2 percent, to $44.47 after the nation's largest supermarket chain reported better sales than investors were expecting. The company also operates Ralphs and Fry's markets. Another retailer didn't fare as well. Costco fell $3.95, or 3 percent, to $112.52 after the company's quarterly earnings and sales missed analysts' estimates.
RETRENCHING: Staples plunged $2.16, or 16 percent, to $11.24 after the office supply chain said it would close 10 percent of its stores because nearly half of its sales are now generated online.
OTHER MARKETS: Bond prices fell. The yield on the 10-year U.S. Treasury note rose to 2.73 percent from 2.71 percent Wednesday. Gold rose $6.80, or 0.5 percent, to $1,347.10 an ounce. Gold has risen 2 percent this week, partly because of the escalating tensions between Russia and Ukraine.
FRAMINGHAM, Mass. -- Staples will close up to 225 stores in North America by the end of next year as it seeks to trim about $500 million in costs annually by 2015.
The nation's largest office-supply retailer said Thursday that nearly half of its sales are now generated online, so it will aggressively cut costs to become more efficient.
Company shares dropped more than 10 percent before markets opened.
The recession did heavy damage to the industry, which is now under increasing pressure from online retailers as well as discount stores.
There is rapid consolidation under way and rivals Office Depot and OfficeMax just completed a $1.2 billion merger.
But the overhead costs of running 'big box" stores has put companies like Staples under stress.
The closings amount to 10 percent of all Staples locations. The company has 2,200 stores worldwide, 1,500 of them in the United States.
It is unclear how many jobs will be lost or what locations will be shuttered.
The company did not immediately return a call from The Associated Press early Thursday.
Staples also posted fourth-quarter earnings and sales fell sharply.
The company's earnings nearly tripled, but that is compared to a period when it booked $176.6 million in restructuring charges as it closed stores.
Staples earned $212.4 million, or 33 cents per share, in the quarter that ended Feb. 1. That compares with earnings of $78.1 million, or 12 cents per share, the previous year.
Revenue slumped nearly 11 percent to $5.87 billion.
Both revenue and profit fell short of Wall Street expectations, as did the company's outlook for this quarter.
Staples expects sales to fall again and it projected earnings of between 17 and 22 cents per share. Analysts that follow the company had been looking for something closer to 27 cents per share.
Staples shares fell $1.35 to $12.05 in premarket trading. That price would set a new 52-week low during regular trading.
ZURICH -- FIFA has fined the Antigua and Barbuda Football Association for financial wrongdoing linked to a development project.
FIFA says the Caribbean member's federation broke rules by agreeing to mortgage its technical center. The building was largely paid for by Goal program funds from FIFA.
The ABFA has been fined 30,000 Swiss francs ($33,800) and reprimanded by FIFA's disciplinary panel.
FIFA reports say the federation received $1.4 million since 2000 to modernize the training center on the island.
FIFA has budgeted to spend $34 million in 2014 on Goal projects for its national members.
Accounting rules for FIFA spending were tightened in anti-corruption reforms following a 2011 election scandal which implicated Caribbean officials in receiving bribes.
BOSTON -- State officials say Massachusetts gained more than 55,000 jobs in 2013, the largest calendar year increase since 2000.
The job growth came in a year that also saw the overall unemployment rate in the state exceed the U.S. unemployment rate for the first time since 2007.
The office of Labor and Workforce Development on Thursday also released the preliminary jobs reports for January. It showed a net decline of 4,500 jobs during the month, while the unemployment rate fell three-tenths of a point to 6.8 percent.
That national unemployment rate was 6.6 percent in January.
KENNEWICK, Wash. -- The Tri-City Development Council has picked the URS Corp. to study the possible benefits of building a small modular nuclear reactor system at the Hanford nuclear reservation.
The council received a $500,000 grant from the state Department of Commerce for the study, which will take about five years.
A modular reactor would cost between $500 million and $1 billion. It would create 200 to 300 construction jobs and require an operating staff of 100 workers.
The Tri-City Herald reports (http://bit.ly/1nhvV9J ) the long-term goal of the Tri-City Development Council is to position the Tri-Cities for a role in manufacturing and exporting small nuclear reactors.
NEW YORK -- Kroger reported a better-than-expected profit for its fourth quarter Thursday as the nation's largest supermarket operator saw a key sales figure rise.
The Cincinnati-based company, which also operates Ralphs and Fry's, has fared better than its peers in adapting to a shifting supermarket landscape that is facing intensifying competition. In particular, people are getting their groceries from a wider variety of places, including big-box retailers like Target, specialty chains like Whole Foods, drugstores and dollar stores.
To keep pace, Kroger has adapted its store formats, developing both larger and smaller locations to compete in different segments of the market. It's also trying to improve the in-store experience, whether it's by expanding specialty food sections or shortening wait times at check-out.
For the period ending Feb. 1, Kroger Co. said sales at established locations rose 4.3 percent, excluding fuel.
By comparison, Safeway last month said the figure rose 1.6 percent in its latest quarter. Safeway, based in Pleasanton, Calif., has also said it's in talks to put itself up for sale amid ongoing consolidation in the industry.
For the quarter, Kroger said it earned $422 million, or 81 cents per share. Excluding one-time items, it earned 78 cents per share, topping the 72 cent per share Wall Street expected.
A year ago, it earned $462 million, or 88 cents per share.
Revenue slipped to $23.22 billion, reflecting the shorter quarter with one less week compared with last year. But the results were above the $23.15 billion analysts expected.
Shares of Kroger were up 2 percent at $44.63 in premarket trading.
The Associated Press
LOS ANGELES -- Shaq wants to be back in a video game.
Shaquille O'Neal says he's seeking redemption for "Shaq Fu." The infamous fighting game starring O'Neal is considered to be among the worst games ever made. The four-time NBA champion is launching a crowd-funding campaign to create a "Shaq Fu" follow-up called "Shaq Fu: A Legend Reborn."
The original game released in 1994 was derided by Shaq fans for its cheesy story, wonky controls and blatant attempt to cash in on O'Neal's superstar status.
O'Neal is asking fans to contribute money on the crowd-funding site Indiegogo to back the new beat-'em-up game to be developed by Big Deez Productions.
The multimillionaire basketball champ said he's looking for fans to help resurrect "Shaq Fu" because it's a "new way of doing business."
The nomination of Debo Adegbile, a civil rights lawyer who helped handle the appeal of a cop killer, forced Democrats to choose between infuriating law enforcement groups or angering minority voters.
The government is saving money by offering more online services. But some worry that seniors and other without access to the Internet are being left behind.
Obama took his push for a higher national minimum wage to Connecticut. The message was welcomed by the governors he appeared with, but back in Washington there isn't much political momentum.
The investigative arm of Congress on Wednesday agreed to look into problems with state health exchange websites around the country.
The U.S. Government Accountability Office accepted an initial request from a group of House Republicans seeking an audit on how $304 million in federal grants were spent on the Cover Oregon website, which has yet to enroll a single person online without special assistance.
The agency said due to similar requests from several members of Congress and congressional committees related to the rollout of online health care exchanges, it would broaden the investigation and issue several separate reports on its findings.
GAO spokesman Charles Young said just which states will be included with Oregon will be determined as the investigation goes forward. But 14 states and the District of Columbia opted to create their own exchanges and accepted federal funding to do so.
Republicans have been stepping up their attacks on troubled health exchanges during this election year, but Rep. Greg. Walden, R-Ore., said it was a non-partisan issue.
He noted Oregon Democratic Sens. Ron Wyden and Jeff Merkley made their own requests for the GAO to investigate a day after the Republicans — Walden, House Committee on Energy and Commerce Chairman Fred Upton of Michigan, and Reps. Joe Pitts and Tim Murphy of Pennsylvania — filed theirs last month.
"The politics will play out where they may, good or bad," Walden said. "That doesn't mean you don't ask questions. We need to get answers."
Merkley said in a statement that he looked forward to the GAO's recommendations "about how to fix the system and avoid this happening in the future."
Cover Oregon spokesman Michael Cox said, "We will participate fully with the GAO as they conduct their work."
Walden added that the probe of state websites would "piggyback nicely" on another GAO look at the federal health exchange website, which has already begun.
Separately, Health and Human Services Secretary Kathleen Sebelius has asked for an inspector general's investigation into problems with the rollout of the health care law.
Some of the state exchanges have outperformed the federal exchange website, but others have trailed behind and faced significant challenges, including expensive fixes to glitches and lower projected enrollments.
In addition to Oregon, where residents on their own still can't sign up for coverage in one sitting, the exchanges in Maryland, Hawaii, Massachusetts and Minnesota have faced major problems.
Sen. Brian Schatz, D-Hawaii, called the investigation a political stunt.
"With House Republicans voting today for the 50th time to repeal the Affordable Care Act, it is disappointing but not surprising that Republicans are now using federal government resources to investigate state health exchanges instead of finding a productive way to help Americans access health care," Schatz said in an emailed comment.
States with successful exchanges include Connecticut, Rhode Island, Kentucky and New York. Connecticut, which has far exceeded its enrollment goals for the open enrollment period, is setting up a consulting business and marketing an "exchange in a box" to other states.
Cover Oregon's online enrollment system was supposed to launch in October, allowing individuals and small businesses to compare insurance plans and qualify for federal tax credits to subsidize the premiums. It wasn't ready, however, forcing people to fill out a lengthy paper application that would have to be processed by hand. Pieces of the website are now working and some portions of the processing are automated, but significant problems still exist.
Republicans have contended problems were known for months before the launch. Gov. John Kitzhaber, a Democrat, has acknowledged mistakes were made but denies having prior knowledge of problems that kept the website from launching on time.
It's been decades since the advertising industry recognized the need to woo Hispanic consumers. Big companies saw the market potential and sank millions of dollars into ads. The most basic dos and don'ts of marketing to Latinos in the United States have been understood for years.
So when officials started thinking about how to persuade the state's Spanish speakers, who make up nearly 30 percent of California's population, to enroll in health care plans, they should have had a blueprint of what to do. Instead, they made a series of mistakes.
For example, one thing health policy experts love about Obamacare is that no one can be denied coverage for a pre-existing health condition. Covered California, the state's health insurance exchange, made this a selling point in almost all its Spanish ads. But that doesn't resonate with Latinos. Many have never had insurance, never considered it.
Bessie Ramirez is with the Los Angeles-based Santiago Solutions Group, a Hispanic market research firm that has consulted for large health-care clients like HealthNet, Cigna and Blue Cross.
She says another problem is that all the early TV ads end with a web address for Covered California in Spanish — no phone number or physical address. She says that completely misses how Hispanics like to shop, especially for a complicated product like health insurance.
Grammatically correct, but lacking nuance?
"Hispanics are heavily on the Internet, and they're growing very fast on the Internet, however they're not transacting on the Internet," Ramirez notes. "They transact on a personal basis. Hispanics will wait to go to a 7-Eleven until 11 o'clock [if] at 11 o'clock they know that [their friend] Juan is on duty."
Perhaps Covered California's biggest mistake was simply translating ads developed in English into Spanish. Think of the long-running English-language campaign, Got Milk? At worst, a literal translation into Spanish could be a rude reference to breast milk. At best, it just falls flat. That's what happened with Covered California's first Spanish-language ad.
The ad features a series of people looking directly into the camera saying, in Spanish, "Welcome to a new state of health. Welcome to Covered California."
Ad experts say that was an obvious misstep.
"To say we're in a new state of health for California, it's grammatically correct to translate it literally, but it doesn't have the same nuance or cuteness that it does in English," says Roberto Orci, CEO of Acento Advertising in Santa Monica.
He found one of the state's follow-up ads just boring — the music, the message and the man in the ad.
"This guy was stiff as a board and ... seco, which in English means dry," he says.
If the product is chicken nuggets or milk, it might not matter to anyone but the company if Latinos buy it. But if Latinos don't buy health insurance, it matters to everyone.
On average, Latinos are younger and healthier than the general population. The premiums they will pay if they sign up help cover the health care costs of older, sicker Californians. And that keeps premium costs down for everyone else.
That's why Covered California is sweating the numbers. Just 6 percent of people who enrolled in Covered California health plans last year speak Spanish as their first language. The state is worried how far that number is from the number of Spanish speakers.
"We don't think we've done a good enough job yet," says Peter Lee, executive director of Covered California. "Relative to our ambitions and our aspirations we don't stack up well enough yet, and so we're going to be doubling down."
The state spent almost $5 million on its Spanish-language ad campaign last year. It plans to spend more than $8 million in the first three months of this year. Covered California has upped its market research efforts and has vowed to adjust its creative messaging. This time around it will put a lot of emphasis on ads where people can go to get help in person.
"Even from day one we thought Spanish speakers would need in-person help," Lee says. "How important that is has really crystallized over the last three months."
The final deadline to sign up for coverage this year is March 31. It's not clear if Covered California can come up with a more effective marketing campaign before then.
This story is part of a reporting partnership among NPR, KQED and Kaiser Health News.
WASHINGTON -- When President Barack Obama's choice to head an agency that oversees some of the riskiest corners of the financial world faces senators Thursday, one question could dominate:
Will he be as aggressive as his predecessor in holding big Wall Street banks to stricter standards?
The nominee, Timothy Massad, has been tapped to be the next chairman of the Commodity Futures Trading Commission, which regulates futures and options markets. If confirmed, he would succeed Gary Gensler, a Wall Street veteran who surprised many by becoming a tough regulator who pushed for stricter rules that large banks had lobbied against.
For three years, Massad, 57, oversaw the Treasury's Troubled Asset Relief Program, the bank bailout program that was launched in response to the crisis. Under TARP, the government lent about $422 billion to bail out financial companies and automakers. The companies have repaid around $370 billion.
Obama, in praising Massad's supervision, has cited the roughly $30 billion in returns for taxpayers under TARP. But the Treasury has estimated that taxpayers will still lose about $40 billion. It attributed much of the loss to declines in stock prices of bailed-out General Motors and American International Group, which Treasury sold, and in the estimated value of its holdings of Ally Financial stock.
After the 2008 financial crisis, the CFTC brought the secretive $600 trillion market for derivatives under regulation for the first time. The goal was to prevent another crisis and resulting taxpayer bailout. Derivatives are complex investments that helped ignite and escalate the financial meltdown.
The value of derivatives is based on a commodity or security, such as oil or currencies. They are often used to protect businesses that produce or use the commodities, such as farmers or airlines, against price fluctuations. But they also are used by financial firms to make speculative bets.
After its hearing Thursday, the Senate Agriculture Committee is expected to approve Massad's nomination and send it to the full Senate for confirmation.
Massad, who has worked for the Treasury since Obama took office in 2009, would oversee the implementation and enforcement of CFTC rules that were enacted to meet the agency's mandate under the 2010 financial overhaul law.
Before joining the government, Massad was a corporate attorney for 24 years at a leading white-shoe firm, Cravath, Swaine & Moore.
Massad "has no reform track record" and little experience with the markets the CFTC regulates, said Marcus Stanley, policy director of Americans for Financial Reform, a coalition of consumer and labor groups. "He's a bit of a blank."
But neither was Gensler viewed as an aggressive reformer. Yet he took a leading role in the agency's writing and adoption of rules to bring transparency to derivatives trading. Those rules have been intended, among other things, to put most transactions into a network of clearinghouses and require firms that trade derivatives to put up more money to cover potential losses
Gensler also pushed to expand the CFTC's authority to regulate derivatives trading abroad and thereby lessen risks to the global financial system. That stance put him at odds with the industry and with Republicans as well as some members of his own party.
As chairman, Massad will face pressure from big banks to weaken the new rules — a situation "where a lot of toughness and commitment to reform is necessary," Stanley said in an interview.
In writing the rules, the CFTC set up a framework. But the real-world details will come from decisions the agency's commissioners will make on how to apply the rules.
Obama described Massad as someone who doesn't seek a spotlight but consistently delivers results.
The Agriculture Committee also will hear testimony Thursday from two Obama nominees to fill vacancies on the five-member CFTC panel: Sharon Bowen, a securities lawyer, and J. Christopher Giancarlo, a brokerage firm executive. Bowen would fill a Democratic seat on the commission, Giancarlo a Republican one.
The CFTC is an independent regulatory agency with about 1,000 employees and an annual budget of around $215 million. That represents around 12 percent of the $17.9 billion earned last year by JPMorgan Chase & Co., one of the five U.S. mega-banks that together account for more than 90 percent of derivatives contracts. At the same time, the CFTC's powers and oversight responsibilities were expanded by the 2010 law.
Obama said in November that budget cuts have left the agency "undermanned" and "outgunned," to the point of having to drop some enforcement cases for lack of resources.
The administration's proposal for the budget year that starts in October, released Tuesday, calls for $280 million to fund the CFTC. That would be an increase of $65 million from the agency's budget in the current year but is $35 million less than what the administration proposed for this year.
