Tuesday, 6 May 2014

Subway tests hummus, thinner meat slices


Subway is testing hummus and thinner slices of deli meats that look more appealing as it looks to keep pace with changing eating trends.


Tony Pace, Subway's chief marketing officer, said in interview Tuesday that the chain began testing hummus as a topping in early April. Pace noted that many customers already order vegetarian sandwiches and that the chickpea spread would give people looking for meatless options another choice.


"It's something we've been talking about for the last three or four years," Pace said, saying it has "tremendous potential."


If the test is successful, Pace said it would be the first time the chain rolled out hummus nationally. Individual franchisees may have offered it independently in the past, he said.


Getting hummus as a topping will cost more, much like the avocado Subway added to its menu in recent years.


The hummus test comes at a time when many Americans are trying to cut back on how much meat they eat. In particular, Pace noted that people in their 20s are more "nutritionally aware" than any other past generation. In coming years, he predicted their eating habits will force the restaurant industry to adapt their menus.


Executives at Chipotle Mexican Grill, which recently began rolling out a vegan tofu topping for its burritos and bowls, have also noted that meatless options help the chain cultivate a relationship with younger consumers, who often experiment with being a vegetarian or vegan.


In a separate interview, Subway co-founder Fred DeLuca said the chain also started testing thinner slices of deli meat in December. In the test, which is taking place at restaurants in Illinois, DeLuca said franchisees are putting 12 slices of meat on a Footlong sandwich, instead of eight. He said the meat is the same but that it's just sliced thinner to improve its "bite" and appearance.


"For some reason, it looks better. It looks like more meat," DeLuca said.


DeLuca expressed optimism about the thinner slices and that the franchisees in Illinois were "very enthusiastic" about the change. Still, he noted that such a change would take considerable research and investment to roll it out nationally. The earliest it could be available nationally would be in about a year, he said.


DeLuca, who has been diagnosed with leukemia, also noted that he hasn't traveled as much in the past year because of his health. He added that he has "toyed with the idea that on the 50th anniversary, it might be a nice idea to step back."


That would entail naming a president, while remaining in the CEO role, DeLuca said. The chain's 50th anniversary is next year.


Looking forward, he said he expects Subway to have about 65,000 locations globally in the next 10 years, with about half of those in the U.S.


Subway, based in Milford, Conn., currently has more than 41,800 locations around the world, 26,600 of those in the U.S.


The company is privately held and does not disclose sales data.



SEC: Texas businessman Wyly lied at NYC trial


A Securities and Exchange Commission lawyer panned a wealthy Texas entrepreneur's testimony Tuesday as she delivered a closing argument at his civil fraud trial, saying he lied repeatedly when he claimed that he acted honorably and did not try to earn hundreds of millions of dollars illegally.


SEC attorney Bridget Fitzpatrick accused 79-year-old retired Dallas entrepreneur Sam Wyly of lying "many, many times" when he explained the role he and his brother Charles took regarding offshore accounts the government claims they created to hide their true interest in four public companies they controlled.


The brothers sold companies including an arts and crafts retail chain, Michael Stores Inc., and two technology companies for a total of over $14 billion before turning to other interests several years ago. After the sales, Sam Wyly landed on the Forbes list of billionaires for a time while the brothers donated millions of dollars to mostly conservative Republican candidates and causes. Charles Wyly died in a car accident in Aspen, Colorado, three years ago.


Fitzpatrick said Wyly lied during multiple days on the witness stand when he said he was happy to disclose information to the SEC and that he never hid assets in the Isle of Man, where offshore trusts enabled the brothers to make millions of dollars in trades in the securities of their public companies without disclosing the depth of their ownership to the public.


Citing hundreds of recommendations the brothers made that were followed, Fitzpatrick said there was no dispute "that the Wylys had sufficient influence that they should have reported their influence."


The lawyer said hiding the extent of their ownership enabled them to claim they owned as little as 1 percent of an insurance company when they actually owned up to 16 percent and 20 percent of Michaels when they owned over 40 percent.


She said they used money from the offshore accounts to build businesses and homes and to fund an Aspen art gallery and a Dallas horse farm.


But defense attorney Stephen D. Susman said his client relied on the good advice of others, including multiple attorneys, to do the right thing regarding all of his companies.


Susman said Wyly trusted employees to make required document filings. The lawyer said he disclosed the existence of the offshore trusts and did not conceal their operations.


Susman said Wyly also let his children do some of the same things he was doing, something that he added his client would not have done if he thought he was doing something illegal.


If the jury agrees with the SEC, U.S. District Judge Shira Scheindlin will be left to decide what penalties he might face. The government is seeking to force Wyly to surrender more than a half billion dollars.



Puerto Rico unveils economic recovery plan details


Puerto Rico's government on Tuesday unveiled details of an economic recovery plan to pull the U.S. territory out of a nearly eight-year recession as it fights to trim $73 billion in public debt.


The plan calls for improving schools, strengthening tourism and agriculture sectors and reducing power costs, among other things.


Ingrid Vila, gubernatorial chief of staff, said Puerto Rico aims to have 2 percent economic growth by 2018, a goal that consultants have said requires some $12 billion in public and private investments.


"Puerto Rico is going through one of the hardest times in our history," Vila said. "Our debt growth rate is higher than our economic growth rate."


She said the government has already started working on some of the goals, noting that it has revived the sugarcane industry and that local farmers harvested rice for the first time in 30 years. Vila also said developers built some 2,200 new hotel rooms last year, although critics say they are waiting to see whether the occupancy rate will increase.


The government also is pushing to lower power bills on an island that depends on oil to generate roughly 70 percent of its electricity.


Education Secretary Rafael Roman said his department plans to enroll children into preschool at an earlier age and will open 32 new preschools this year. He said he also aims to increase the island's university graduation rate by offering free computers and continuing a program that allows students to take a college admission exam for free.


U.S. investors and bondholders, along with major credit rating agencies, have been closely watching Puerto Rico's economy amid pledges from the government to improve the island's fiscal situation.


Vila said the government plans to take concrete actions and adhere to the plan. "It's more than just a public declaration," she said.


Puerto Rico economist Martha Quinones said it is unclear whether all the goals can be realistically met. She noted the Caribbean's tourism market is already saturated and said Puerto Rico faces overwhelming competition from imported food items.


Quinones also questioned whether the island will reach 2 percent growth by 2018.


"It might not be achievable in four years because all those investments will take their time to generate growth," she said.


She also said Puerto Rico has implemented too many tax measures. "Companies need assurance that the ground rules are not going to change," she said.



Detroiters could get option to fund more services


Detroit residents could get the option to pay for enhanced security, snow removal and mosquito abatement in their neighborhoods through a special assessment on property tax bills.


The Detroit Free Press reports (http://on.freep.com/RjsW65 ) the supporters of the special assessment district ordinance passed unanimously by City Council last week say it can enhance services that the city can't afford, stabilize neighborhoods and eventually increase property values.


Some residents, however, balk at the cost.


The ordinance needs the OK from state-appointed emergency manager Kevyn Orr, who is reviewing the matter.


Neighborhood leaders or organizations would propose the new fee to residents, and if a simple majority of property owners approve, taxpayers within the neighborhood's boundaries must pay. The cost would depend on the neighborhood and what services would be provided.



Latin music night leads to big week on 'Dancing'


A special Latin music night and a health scare for one of the contestants made ABC's "Dancing With the Stars" last week the most-watched episode of an unscripted series on the air this season.


"Dancing" finished with just under 16 million viewers, the Nielsen ratings company said. It ranked behind only CBS' "NCIS" and "The Big Bang Theory," television's most popular drama and comedy, in the weekly rankings. "Dancing" contestant Amy Purdy, a double-amputee and Paralympics athlete, was sent to a hospital following back spasms in the episode that aired last week.


NBC brought Johnny Weir and Tara Lipinski onto its Kentucky Derby coverage this year, and the telecast was seen by 15.3 million people. That's down from the 16.2 million who watched last year, although last year's race had the biggest audience since 1989.


NBC's "IHeartRadio Music Awards" was one of the most tweeted-about events on TV last week, but that didn't necessarily make it popular with viewers. It was rated No. 49 for the week, with 5.5 million viewers.


CBS won the week in prime time, averaging 8.8 million viewers. ABC had 6.6 million viewers, NBC had 6.1 million, Fox had 3.9 million, Univision had 2.9 million, the CW had 1.5 million, Telemundo had 1.1 million and ION Television had 1 million.


TNT was the week's most popular cable network with the NBC playoffs, averaging 3.23 million viewers in prime time. USA had 1.95 million, History had 1.76 million, TBS had 1.582 million and Nick at Nite had 1.579 million.


NBC's "Nightly News" topped the evening newscasts with an average of 9 million viewers. ABC's "World News" was second with 8.1 million, and the "CBS Evening News" had 7 million viewers.


For the week of April 28-May 4, the top 10 shows, their networks and viewerships: "NCIS," CBS, 17.25 million; "The Big Bang Theory," CBS, 16.07 million; "Dancing With the Stars," ABC, 15.88 million; "NCIS: Los Angeles," CBS, 14.83 million; "Blue Bloods," CBS, 11.59 million; "The Voice" (Monday), NBC, 11.58 million; "Person of Interest," CBS, 11.31 million; "The Voice" (Tuesday), NBC, 11.18 million; "The Black List," NBC, 10.85 million; "60 Minutes," CBS, 10.48 million.


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ABC is owned by The Walt Disney Co. CBS is owned by CBS Corp. CW is a joint venture of Warner Bros. Entertainment and CBS Corp. Fox is owned by 21st Century Fox. NBC and Telemundo are owned by Comcast Corp. ION Television is owned by ION Media Networks.


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Online:


http://bit.ly/1muLyha



New Zealand offers cash for move to quake city


Unemployed New Zealanders are being offered cash by the government to move to the earthquake-damaged city of Christchurch and join in the rebuilding effort.


The government announced Tuesday it would pay welfare recipients 3,000 New Zealand dollars ($2,600) to move to the city if they found any kind of fulltime work there.


Christchurch has been slowly rebuilding after a 2011 quake killed 185 people and destroyed much of the city's downtown.


Social Development Minister Paula Bennett said the city's reconstruction is creating thousands of jobs but some unemployed people don't have the resources to move to Christchurch.


She said the money will help pay for moving expenses, accommodation, tools and other equipment.


"There is demand not only in construction, but in hospitality, retail and many other industries too," she said in a statement.


The scheme is initially limited to 1,000 people.


Figures from government agency Statistics New Zealand show the unemployment rate in Canterbury, which includes Christchurch, is 3.4 percent, while the national rate is 6 percent. The agency's most recent survey showed construction industry employment was up by more than 7 percent in Canterbury over the past year.


The opposition Labour Party said the plan is flawed because it wouldn't benefit local people and would add to a housing shortage in the city.



Stocks drop on mixed earnings; Twitter plunges


U.S. stocks fell broadly on Tuesday as investors found little to cheer in corporate earnings reports. A plunge in Twitter led Internet companies sharply lower.


Twitter dropped 18 percent after company insiders were allowed to sell stock for the first time since the initial public offering last year. Netflix fell 5 percent, Facebook and Amazon, 4 percent each, and Google, 2 percent.


Nine of the ten industry groups in the Standard and Poor's 500 fell, led by a 1.4 percent drop in financial companies after results for insurer American International Group fell short of analysts' expectations. Home builder stocks dropped after more signs of weakness in the housing market.


Jack Ablin, chief investment officer of BMO Private bank, says investors are worried that corporate results over the next few quarters will not justify the surge in prices from the start of 2013.


"We ran ahead of fundamental valuations, based on revenue and earnings," Ablin said. "Either revenue or earnings have to catch up to the market, or prices have to come down."


The S&P 500 dropped 16.94 points, or 0.9 percent, to 1,867.72. The Dow Jones industrial average fell 129.53 points, or 0.8 percent, to 16,401.02. The Nasdaq composite dropped 57.30 points, or 1.4 percent, to 4,080.76.


Even utilities — the biggest winners so far this year, up 12 percent — did not escape the selling. They slipped 0.5 percent.


The drop in the S&P 500 and the Dow Jones index was the third in four trading days, and comes despite recent upbeat news on the U.S. economy. Payrolls increased by 288,000 last month, the fastest pace since 2012.


Steven Ricchiuto, chief economist of Mizuho Securities, noted that, for all the job gains, wages for U.S. workers have not increased significantly, and that is holding back consumer spending.


"People are getting weary of the 'things-are-getting-better' story," said Steven Ricchiuto, chief economist of Mizuho Securities. "We're hiring more workers, but we're not paying them more."


Companies in the S&P 500 index are expected to have increased earnings by 2.6 percent in the first quarter, according to S&P Capital IQ, a data provider. That is down sharply from the nearly 8 percent jump in the fourth quarter.


U.S. home prices rose at a slightly slower pace in the 12 months that ended in March, according to data provider CoreLogic. It was another sign that weak sales, caused in part by rising mortgage rates, have begun to restrain the housing market's sharp price gains.


Home builder stocks fell broadly. Ryland Group fell $1.08, or nearly 3 percent, to $37.68. D.R. Horton fell 55 cents, or nearly 3 percent, to $22.43.


American International Group fell $2.18, or 4 percent, to $50.54. The company reported revenue that was below what investors expected due to higher catastrophe losses and lower investment income.


Investors were also keeping an eye on the turmoil in Ukraine. In the city of Donetsk, pro-Russia militants armed with automatic rifles and grenade launchers surrounded an Interior Ministry base. And a planned weekend referendum by pro-Russian insurgents for autonomy and independence in parts of eastern Ukraine was denounced as "bogus" by the Obama administration.


U.S. government bond prices rose slightly. The yield on the 10-year Treasury note fell to 2.59 percent from 2.61 percent Monday. The yield has fallen from 3 percent at the start of January.


In other stocks making big moves:


— Office Depot soared 66 cents, or 16 percent, to $4.83 after reporting adjusted profits for the first quarter that were twice as high as analysts expected. The company also said it would close at least 400 U.S. stores after its merger with OfficeMax resulted in the overlap of retail locations.


— Discovery Communications fell $3.06, or 4 percent, to $74.71 after reporting a gain in first-quarter revenue that was lower than analysts expected.


— Merck fell $1.52, or 2.6 percent, to $57.11 after the drug company agreed to sell its non-prescription medicine and consumer-care business to Germany's Bayer for $14.2 billion. Products in that business include Claritin allergy pills, Coppertone sunscreen and Dr. Scholl's footcare products.


— Whole Foods Market tanked $7.07, or 15 percent, to $40.83 in after-hours trading. Quarterly profit at the upscale grocer fell short of expectations as rivals have sped up their own organic and natural offerings. The company also cut its profit outlook for the rest of the year.



Slowing Chinese economy likely to pinch US, too


After watching China narrow the U.S. lead as the world's largest economy, Americans might be tempted to cheer signs that the Chinese economy might be stumbling.


Any schadenfreude would be short-sighted.


In an interconnected global economy, bad news for one economic superpower is typically bad news for another — even a fierce rival.


"It hurts," says Mark Zandi, chief economist at Moody's Analytics. "China is the second-largest economy on the planet. If growth slows there, it affects everybody."


Zandi estimates that each 1 percentage point drop in China's economic growth causes as much damage to the U.S. economy as a $20-a-barrel increase in oil prices: It shaves 0.2 percentage point off annual U.S. growth.


That isn't catastrophic. But to regain its full health nearly five years after the Great Recession officially ended, the U.S. economy needs whatever help it can get.


A sharp slowdown in China also threatens the 28-member European Union, which outweighs even the United States if measured as a single economy. China is the EU's second-largest export market behind the United States.


A stream of economic news from China has been rattling financial markets. Chinese manufacturing slowed in April for a fourth straight month. A Chinese lending bubble, driven by overbuilding, is stirring alarm. China's growth in the January-March quarter slowed to 7.4 percent compared with a year earlier. It was its slowest quarterly growth since the 2008-2009 global crisis.


For most economies, 7.4 percent growth would qualify as explosive. The U.S. economy hasn't grown as fast as 7 percent since 1984. But for China, a still-developing economy that clocked double-digit growth through much of the 2000s, the latest figures qualify as a slump.


And Americans and Chinese are linked ever more tightly economically.


They buy each other's products, invest in each other's markets, visit each other's tourist attractions. U.S.-China trade in goods last year totaled $562 billion. China is the United States' second-biggest trading partner and the No. 1 source of U.S. imports, according to the Congressional Research Service.


Consider:


— The number of Chinese visitors to America jumped 23 percent last year to 1.8 million. And the Chinese spend an average of about $6,000 a visit — more than tourists from any other country. "Shopping is the No. 1 activity for Chinese tourists," says Jolin Zhou of Sunshine Travel, a Boston travel agency that specializes in Chinese tourists.


— Chinese investment in U.S. businesses, factories and real estate — tangible things, not including stocks, bonds and other financial instruments — has gone from virtually nothing a decade ago to $14 billion last year, according to the Rhodium Group, a consultancy. More than 70,000 Americans work at Chinese companies in the United States, up from almost none in 2000.


— U.S. exports of goods to China have doubled since 2006 to a record $122 billion last year. In 2013, U.S. companies earned a record $9.7 billion in China.


China's economy is slowing as it shifts away from growth based on exports and investment in real estate and factories and toward growth fueled by consumer spending. The country is also contending with a surge in debt fueled by loans from state-owned banks. Outstanding credit has surged from the equivalent of 130 percent of China's economy in 2008 to 200 percent last year, according to Capital Economics.


In Europe, companies are vulnerable to a further slowdown in China because of how much their trade there has expanded. China is especially key for Germany's three luxury automakers — Daimler's Mercedes brand, Volkswagen's Audi and BMW. China is now a far larger market for BMW than is the United States.


Some European carmakers have gone so far as to adjust their models to cater to Chinese customers, such as stretching the chassis and sumptuously outfitting rear seats on the assumption that the car's primary user might have a chauffeur.


Still, U.S. companies still see lucrative opportunities and are betting that Chinese authorities can continue to manage a healthy pace of growth.


"In China's case, the car was driving 80 miles an hour; now it's at 60 miles an hour," John Faraci, CEO of International Paper Co., told analysts in February. "It feels slower, but it's still pretty fast growth."


Many U.S. companies plan to take advantage of a Chinese government push to clean up the environment and make the economy more energy-efficient. General Electric is selling China cleaner power plants that run on methane. Covanta of Morristown, New Jersey, operates one plant that turns garbage into power in the province of Sichuan and another in the province of Jiangsu. NanoH2O Inc., based in El Segundo, California, is building a factory west of Shanghai to produce membranes for filtering sewage or brackish water. It's due to open late this year.


Chinese leaders see the scarcity of clean water as a strategic weakness and possible source of political unrest. China accounts for one-fifth of the world's population but has only about 6 percent of its drinkable water.


"The market opportunity here is so large, and we felt that we wanted to be in a position to really take advantage of that opportunity and to build a plant large enough to export globally," says Jeff Green, CEO of NanoH20.



McDonald reported from Beijing. AP Business Writer David McHugh in Frankfurt, Germany, contributed to this report.


Jamaica gets new lending program from World Bank


The Caribbean director of the World Bank says Jamaica will receive $510 million under a four-year lending program.


At a Tuesday news conference in Kingston, Sophie Sirtaine says the program is part of a reform project led by Jamaica.


Sirtaine has praised positive economic signs, including hitting fiscal targets and a recent return to growth. But she also points to Jamaica's weaknesses, such as its high vulnerability to shocks.


She says, "It's not an easy walk, but I think that everybody is trying to do their best to make sure this works."


Last year, Jamaica began a four-year loan package with International Monetary Fund to stabilize its economy. That deal was reached after Jamaica launched a debt-swap program and halted what the prime minister described as a "serious economic crisis."



Gaffe Breathes New Life Into Iowa Senate Race



Iowa Republican state Sen. Joni Ernst debates fellow U.S. Senate candidate Mark Jacobs, a retired CEO, in April.i i


hide captionIowa Republican state Sen. Joni Ernst debates fellow U.S. Senate candidate Mark Jacobs, a retired CEO, in April.



Charlie Neibergall/AP

Iowa Republican state Sen. Joni Ernst debates fellow U.S. Senate candidate Mark Jacobs, a retired CEO, in April.



Iowa Republican state Sen. Joni Ernst debates fellow U.S. Senate candidate Mark Jacobs, a retired CEO, in April.


Charlie Neibergall/AP


This year, Iowa will elect a new U.S. senator, thanks to the retirement of five-term Democrat Tom Harkin.


For a time, this was a seat Democrats didn't think they needed to worry about; Congressman Bruce Braley was considered the favorite to win the seat in November.


Thanks to a serious gaffe, though, the seat looks to be in play. Now, five Republican hopefuls, none well-known statewide, are all racing toward the June primary.


On a recent afternoon, candidate Mark Jacobs works the basement community room at the Harlan Public Library in western Iowa. About a dozen people showed up.


"I thought what I might do is take a couple minutes, tell you a little bit about myself," Jacobs says. "Most important thing to know about me is I'm a business guy. I've never run for any elected office before."


Jacobs made his name as CEO of Texas-based Reliant Energy. Now he's back in his native Iowa, wealthy and able to pay the tab for much of his campaign. Though, on that topic, he recently caused controversy when a network TV reporter asked if he would forego his salary if elected. He responded that U.S. senators don't make that much money. He's since said he misunderstood the question.


Still, polls suggest Jacobs is considered one of the top two contenders. The other is state Sen. Joni Ernst, who has tackled the name recognition problem with attention-getting TV ads. You may have heard this one:


"I'm Joni Ernst," the ad begins. "I grew up castrating hogs on an Iowa farm, so when I get to Washington I'll know how to cut pork."


Ernst has some high-profile endorsements, including ones from Mitt Romney and Sarah Palin. Her newest ad is downright Palin-esque. The candidate, wearing a leather jacket, rumbles up to a shooting range on a Harley.


"Once she sets her sights on Obamacare, Joni's gonna unload," the ad says over the sound of gunshots.


Rounding out the field are economics professor and talk radio host Sam Clovis, who's appealing to Tea Party and evangelical voters; former U.S. Attorney Matt Whitaker, whose ads highlight his time as a University of Iowa football player; and Scott Schaben, a car salesman.


Democrats, meanwhile, have just one candidate: Congressman Bruce Braley. But that hasn't meant a lack of drama. Just over a month ago, Braley was speaking at a private fundraiser when he warned about a GOP takeover of the Senate. He spoke in a way that upset some people about Iowa's popular long-time Republican U.S. Senator Chuck Grassley, who is not up for re-election this year.


"You might have a farmer from Iowa who never went to law school, never practiced law, serving as the next chair of the Senate Judiciary Committee," Braley says.


Dennis Goldford, a professor at Drake University, sees how this hurts Braley.


"It suggested insult to farmers and agriculture. It suggested that he was interested in going to Washington to protect the interests, not of Iowans, but of trial lawyers," Goldford says. "He shot himself in both feet with a major caliber weapon."


To try to set things right, the Braley campaign is running a new TV ad.


"When I got to Junior High, I started doing a lot of farm work. I would play football games on Friday nights and then go over to the elevator and dry corn, all night long," Braley says in the ad.


He remains ahead in early polls, but Republicans now see the race as much more winnable. Iowa is an evenly divided state politically and if it lacks the diversity of some other big battleground states, there are factions and real geographic differences, says Drake's Dennis Goldford.


"Northern Iowa has more of a Scandinavian heritage, which has more of a liberal or progressive dimension to it," Goldford says. "Northwestern Iowa, Southeastern Iowa have more of a Dutch reformed heritage, which is more the social and religious conservative side of things."


He then adds with a smile: "You stir it all together and it's as spicy as beef and noodles."


It's a favorite dish among Iowans. Primary day is June 3 and after that, the main meal will commence.



From Humble Beginnings, A Powerhouse Fundraising Class Emerges



Sen. Kirsten Gillibrand, D-N.Y. asks a question of a witness on Capitol Hill during a June 2013 committee hearing. Since her appointment in 2009, Gillibrand has become one of the Senate's top fundraisers.i i


hide captionSen. Kirsten Gillibrand, D-N.Y. asks a question of a witness on Capitol Hill during a June 2013 committee hearing. Since her appointment in 2009, Gillibrand has become one of the Senate's top fundraisers.



Susan Walsh/AP

Sen. Kirsten Gillibrand, D-N.Y. asks a question of a witness on Capitol Hill during a June 2013 committee hearing. Since her appointment in 2009, Gillibrand has become one of the Senate's top fundraisers.



Sen. Kirsten Gillibrand, D-N.Y. asks a question of a witness on Capitol Hill during a June 2013 committee hearing. Since her appointment in 2009, Gillibrand has become one of the Senate's top fundraisers.


Susan Walsh/AP


Women are far less likely than men to run for Congress. But here's the curious thing: when it comes to the hardest, most miserable part of campaigning – fundraising – women do just as well as men.


Study after study shows this, but it wasn't always that way. Efforts over the past 30 years – to teach women how to raise money and give money – have helped them catch up to men as powerhouse fundraisers.


Even with ample evidence that women can raise just as much money as men in general elections, a lot of women say asking for money is what they dread most about running for office.


"I mean, I think about when I was a Girl Scout, right? And I did not want to sell those cookies because it was so hard to ask people to buy!" said Sara Eskrich, whose first campaign will be for city council in Madison, Wisconsin.


Eskrich, who's 27 and has curly red hair, spent one afternoon role-playing in a basement in downtown Madison to practice how to call a donor for money. It was one of many training sessions across the country organized by EMILY's List – the political action committee that fundraises for pro-choice Democratic women.


"Ring, ring! Ring, ring!" Eskrich sang, holding an invisible phone up to her ear.


Her training partner picked up.


"Hi, Hi is um," Eskrich said, squinting at her notes. "Sorry, I forgot your name!"


The two women traded niceties and after a minute, Eskrich went in for her pitch.


"I was also wondering if you might be able to help join me in this effort to really bring development into Madison, and if you might be willing to donate $500 to my campaign," she said.


The thinking is, if women get more confident at fundraising, they'll run more often, and that means more women in seats of power. All they need is a little bit of nudging.


When Geraldine Ferraro made her historic run for vice president in 1984, neither party had ever systematically recruited or fundraised for female candidates.


Pat Schroeder, a former Democratic congresswoman from Colorado, remembers a very humble beginning.


"My first campaign in 1972 – are you seated? My average campaign donation was $7.50," said Schroeder.


Even today, the money women raise tends to come in small amounts – so women have to gather more individual donors than men do.


For a long time, that meant attending lots and lots of small events. Schroeder organized so many wine and cheese events, she said she made her staff order only white wine to prevent her teeth from getting permanently stained. And then there was the time she finally had a birthday party without an admission fee.


"My wonderful brother said, 'You mean I can finally come to your birthday party and not pay money?'" Schroeder said, laughing.


Schroeder's close friend Connie Morella, the former Republican congresswoman from Maryland, remembered setting up many, many coffees.


"You wanted them to give something at those coffees, and very often it was $25," said Morella. "And I did golf tournaments. I don't even play golf!"


In 2012, the average cost of winning a House seat was $1.6 million, according to the Center for Responsive Politics. In the Senate, it was more than $10 million. You can't run for Congress on wine and cheese nights anymore.


This year, EMILY's List is on track to play a bigger role than ever. It's raised $26 million this election cycle so far. At the group's annual dinner in Washington, D.C., president Stephanie Schriock alluded to the fact that at least five Democratic women are running in extremely tight Senate races this year.


"The control of the Senate depends on EMILY's List," shouted Schriock into a packed ballroom of donors, candidates and supporters at the Mandarin Oriental Hotel.


Since its inception in 1985, EMILY's List has become one of the most successful PACs in the country with a network of three million donors – the vast majority of whom are females donating less than $200 each. There's no question – EMILY's List has become the model for how women can raise money for women.


And the female candidates endorsed by the group have used what they learned from EMILY's List to help other women raise money. Kirsten Gillibrand of New York has become one of the top female fundraisers in the Senate.


"I was embarrassed to ask people for money," said Gillibrand. "And, at one point something very simple occurred to me – it wasn't about me. It's not about whether I win or lose. It's whether the issues that I'm fighting for, whether we achieve them. And so when you begin to realize the money's not for you, it is so freeing."


In 2011, Gillibrand started a leadership PAC called "Off the Sidelines" to help other women. According to the Center for Responsive Politics, it's raised almost $2.9 million this election cycle – the highest amount raised by any Democratic leadership PAC for 2014.


"It starts with a very core principle that women's voices matter," said Gillibrand. "And if they're not being heard in Washington, then the agenda we're setting on the national level is not reflective of all Americans."


On the Republican side, fundraising by women for women hasn't gotten as far, even though the party is trying to make it a priority now. No Republican group has yet emerged as an equivalent counterweight to EMILY's List.


Former Congresswoman Connie Morella says it's always been a heavy lift getting women in her party to open their wallets.


"If you had male and female in a household, you probably would prefer to have the male on the phone to write the check. The woman would give the support, she'd encourage him to do it, but her check would be just a little less," Morella said.


Cycle after cycle, Republican women have always donated less than Democratic women. But Sandra Mortham, who heads the Republican PAC Maggie's List, said that is going to change.


"A lot of that is because they have not learned to do it. I do believe it's a function of learning. I think it's a function of getting people used to giving," said Mortham.


Actually, election analysts say women in both parties could use some more learning.


Since 1990, roughly three-quarters of all campaign contributions overall have come from men. Even after you break down those contributions by party, the gender disparity among donors is still pretty similar. And since female candidates rely heavily on female donors, getting women to sign those bigger checks may be the ticket to electing more women.



Abortion Opponents Find Winning Strategy In Ohio



In Ohio, four of the state's 14 abortion clinics have shut down over the past year, with three more in legal peril.i i


hide captionIn Ohio, four of the state's 14 abortion clinics have shut down over the past year, with three more in legal peril.



Alan Greenblatt/NPR

In Ohio, four of the state's 14 abortion clinics have shut down over the past year, with three more in legal peril.



In Ohio, four of the state's 14 abortion clinics have shut down over the past year, with three more in legal peril.


Alan Greenblatt/NPR


The old abortion rights slogan — "safe, legal and rare" — has been turned on its head.


By imposing greater safety requirements on clinics, abortion opponents have succeeded in putting many of them out of business.


The goal of this strategy is not to ban abortion — "there are things that are banned that occur every day," says Mike Gonidakis, president of Ohio Right to Life — but to end it.


"Abortion is legal, so you must have incremental legislation to save as many babies as we can," Gonidakis.


Outright bans after certain stages in pregnancy in Arkansas and North Dakota have been struck down by federal courts in recent weeks. But imposing restrictions on clinics — such as requiring their physicians to have admitting privileges at neighboring hospitals — has led a number of them to shut down.


The Supreme Court upheld such restrictions in Texas last fall.


"There were more than 40 clinics that provided abortions in Texas in 2011," National Journal reports. "There are now 20 still open, and after the law's last steps of implementation are taken in September, all but six are expected to close."


Mississippi's only abortion clinic may close for similar reasons. In Ohio, four of the state's 14 abortion clinics have shut down over the past year, with three more in legal peril.


"If more clinics close in Ohio, leaving a large majority of the women without access to safe and legal abortion, that would be ground for litigation, because it's creating an undue burden on women," says Jennifer Branch, attorney for the Women's Med Center, an abortion clinic in the Cincinnati area.


Putting Up New Obstacles


With both its clinics in legal jeopardy, Cincinnati could become the largest metropolitan area in the country without access to abortion services.


Ohio law requires clinics to have patient transfer agreements in place with nearby hospitals. Last year, it barred public hospitals from entering into such agreements.


That cost Planned Parenthood its transfer agreement with the University of Cincinnati Medical Center.


"When they initially put into the law the requirement of a transfer agreement, they said it was for the good of the women," says Jerry Lawson, CEO of Planned Parenthood of Southwest Ohio, which operates clinics in Cincinnati and Dayton.


"Then they turn around and pass a law that says public hospitals can't have transfer agreements," he continues. "Now, which is it — are you worried about the women, or are you interested in preventing abortions?"


Upholding Standards


Lawson is doing the paperwork to renew his clinic's license. He still hasn't heard back from the state about last year's application. Or about his request for a "variance" that would allow his clinic to operate without a transfer agreement in place.


He's on legally safe footing, so long as those applications are pending.


"We may get into a position where we have to litigate," Lawson says. "That would take a long time and we would be operating in the meantime."


The state ruled in January that Women's Med Center in Sharonville should close because of issues with physician credentials, but a judge is allowing it to stay open pending appeal. That angers Paula Westwood, executive director of Right to Life of Greater Cincinnati.


"Women do not benefit from going to any health clinic for anything that does not have some standards that are followed," she says. "If there is a good side to this litigation, it's that it calls attention to abortion providers and the fact that it's not a safe procedure."


Fewer than 1 percent of Ohio's 25,000 annual abortions are performed in hospitals.


"Women who walk through this door, they know what they're doing," says Roslyn Kade, medical director of the Planned Parenthood facility in Cincinnati. "No law changes their mind."


Kade says most of her patients are low income, sometimes homeless and often single mothers already. They're having to make difficult decisions about whether they can care for another child.


She argues that abortion opponents are putting women's health at risk by creating an atmosphere that makes physicians anxious about performing abortions even when the fetus is not viable.


"They are very restricted on what fetal anomalies they can terminate," Kade says. "If you have a fetus that doesn't have a brain, do you insinuate that the women are making a bad decision? That to me is so awful."


Long History Of Protest


Cincinnati has long been a center of abortion protest. John Willke, a local obstetrician, was a founder and past president of National Right to Life. In 1985, a militant group set fire to two Cincinnati abortion clinics — including one on the site of the present Planned Parenthood facility.


That facility still sees protests on a near-daily basis. One recent morning, five people — at least three of whom were paid to be there — were holding and wearing signs with messages such as "Abortion: The Ultimate Child Abuse." Some displayed graphic images of aborted fetuses.


"Please repent," Ray Loebker says to a woman walking toward the abortion clinic's entrance. "Our Lord came to give life, not death."


Loebker says he's been protesting outside the clinic since 1973, devoting himself full-time to the cause since his retirement a decade ago. He's not convinced that the new restrictions have done enough to abolish the practice.


"I'll believe they'll shut down when they're shut down," he says. "They've been operating illegally for years."


Gonidakis, the Ohio Right to Life president, says that pushing for a ban is all well and good but credits the 10 separate restrictions the state has imposed since 2010 with helping to reduce the number of abortions actually performed in the state. (The annual total is down by half from its 1981 peak.)


"Let's continue to take the incremental approach and help change people's minds," he says. "A majority of Ohioans support our initiatives, this incremental approach."



As States Vote In Primaries, Voter ID Laws Come Under Scrutiny


Three states are holding primaries Tuesday, and voters might understandably be confused over what kind of identification they need to show at the polls.


In Indiana, it has to be a government-issued photo ID. In Ohio, you can get by with a utility bill. In North Carolina, you won't need a photo ID until 2016. But that law, along with ID laws in many other states, faces an uncertain future.


"OK, here we have Florida, Georgia, Indiana," That's Wendy Underhill, of the National Conference of State Legislatures. She's ticking off the names of some of the states that required voters to show a photo ID back in 2012.



An Arkansas voter enters an early-voting polling place on May 5.i i


hide captionAn Arkansas voter enters an early-voting polling place on May 5.



Danny Johnston/AP

An Arkansas voter enters an early-voting polling place on May 5.



An Arkansas voter enters an early-voting polling place on May 5.


Danny Johnston/AP


When it comes to state voting laws, Underhill has an important job: She's the keeper of a frequently consulted list of ID requirements, which seems to change almost daily. (The NCSL has this online resource of voter ID requirements.)


This year, Underhill says, there are 16 states that require voters to show a photo ID, eight of which have what are called strict photo ID rules. That means without the credential, you basically can't vote.


"But one of those is Arkansas, and so in Arkansas we don't know whether that will be in place or not," Underhill says.


Arkansas's law is one of several being challenged in the courts. Just last week, a state judge ruled twice that Arkansas' photo ID requirement is unconstitutional. But the judge said he wouldn't block the state from enforcing it in an upcoming primary.


Also last week, a federal judge struck down Wisconsin's photo ID requirement. And a Pennsylvania judge refused to reconsider his decision striking down that state's law.


"Things seemed to have changed," says Rick Hasen, an election law expert at the University of California, Irvine. He says that after a period when courts were upholding state voter ID laws, some judges are now striking them down; it might be that the requirements have become stricter.


But it also "might be that the judges are learning that these laws actually don't serve the anti-fraud purpose that they are advertised as serving," he explains.


In fact, in the Wisconsin decision, the judge found no evidence that there was voter impersonation fraud in the state. Concern over that type of fraud was the main reason lawmakers said a photo ID requirement was needed. The judge also said the state's law would impose an unfair burden on black and Latino voters, because they're less likely to have the required ID.


"The tide is turning toward our favor, toward the favor of the voters," says Katherine Culliton-González, who is with Advancement Project, one of several groups challenging Wisconsin's law. "We've just seen so many people who are confused about whether they can vote, trying very hard to get the right type of ID, looking at changing rules all the time, and elections that have just run amok."


She and other voter ID opponents say they're confident that the Wisconsin decision will be upheld. But Wisconsin's attorney general, J. B. Van Hollen, has vowed to appeal. And he says he's just as confident the judge will be overruled.


"I thought the decision was very poor," Van Hollen says.


Van Hollen notes that other courts — including the U.S. Supreme Court — have upheld similar ID laws in other states. And even though the judge found no evidence of voter fraud, Van Hollen says he has no doubt such fraud exists. Especially since right now Wisconsin voters don't have to show a photo ID.


"It's so easy to vote as if you were someone else in Wisconsin that it makes it almost impossible to prove that people are voting and impersonating others when they're voting," Van Hollen says.


That debate is likely to continue in the courts and states for months, if not years. Although Wendy Underhill of the National Conference of State Legislatures says, at least right now, no new voter ID laws are in the works.



Billy Frank Jr., tribal fishing activist, dies


From the time he was first arrested, at the age of 14, for fishing near his home, Billy Frank Jr. had been a fierce and tireless champion for salmon, tribal sovereignty and the right of Northwest tribes to fish in their traditional waters.


Nearly 70 years of advocacy ended on Monday when the Nisqually tribal elder died at his home near Olympia. He was 83.


Frank figured prominently in Northwest fish-in demonstrations of the 1960s and 1970s that eventually led to sweeping changes in how salmon and other fish are managed in Washington state.


He was arrested more than 50 times for "illegal fishing" during the protests that came to be known as the fish wars. Patterned after the sit-ins of the civil rights movement, the campaign was part of larger nationwide movement in the 1960s for American Indian rights.


"Today, thanks to his courage and determined effort, our resources are better protected, and more tribes are able to enjoy the rights preserved for them more than a century ago," President Barack Obama said in a statement. "Billy never stopped fighting to make sure future generations would be able to enjoy the outdoors as he did, and his passion on the issue of climate change should serve as an inspiration to us all."


Gov. Jay Inslee added his praise.


"Billy was a champion of tribal rights, of the salmon and the environment," the governor said. "He did that even when it meant putting himself in physical danger or facing jail."


Frank's Landing, his family's home along the Nisqually River, became a focal point for fish-ins. Frank and others continued to put their fishing nets in the river in defiance of state fishing regulations, even as game wardens watched and cameras rolled.


Demonstrations staged across the Northwest attracted national attention, and the fishing-rights cause was taken up by celebrities such as the actor Marlon Brando, who was arrested with others in 1964 for illegal fishing from an Indian canoe on the nearby Puyallup River.


Salmon was central to his culture, as with most Northwest tribes, and Frank devoted decades of his life to ensuring that fish, water and the tribal way of life were protected, said Washington state Sen. John McCoy, who is a member of the Tulalip tribe.


"It all revolved around fishing and the ability to fish," McCoy said. "He found it extremely important that this tradition be maintained."


Frank was also known for his warmth and for giving out big hugs or gently ribbing people.


In 1992, he was awarded the Albert Schweitzer Prize for Humanitarianism, whose winners include former President Jimmy Carter and Desmond Tutu.


Frank served as the chairman of the Northwest Indian Fisheries Commission since 1977. The organization of 20 Western Washington tribes was created in 1974, after the court case brought by the federal government against the state of Washington.


U.S. District Judge George Boldt, who decided the case in what came to be known as the "Boldt decision," affirmed the tribes' right to half of the fish harvest — and the nation's obligation to honor the old treaties.


The ruling, upheld by the U.S. Supreme Court in 1979, effectively made the Northwest tribes co-managers of the resource and laid the foundation for the Northwest Indian Fisheries Commission.


The decision had a sweeping effect on other tribes in the U.S., Canada and elsewhere as it triggered other treaty rights cases and changed attitudes toward American Indians, said Richard Whitney, who was appointed a technical fisheries adviser by Boldt after the decision.


Over the next 40 years, Frank continued to press for tribal fishing rights and protection of natural resources, including improving water quality, restoring habitat and removing culverts to ease fish passage.


"We ceded all this land to the United States for a contract to protect our salmon, our way of life, our culture," he told The Associated Press in 2012. "We're gatherers and we're harvesters. And they forgot about us. They built their cities, they built their university. They built everything, and they forgot about us tribes."


Frank was well-known in Washington, D.C., visiting the Capitol and White House to bring attention to issues important to the tribe as well as pressuring the federal government to uphold its treaty obligations to the tribes.


"He was just as fierce now as he was then. He didn't take any crap from anybody," said Russell Hepfer, vice chairman of the Lower Elwha Klallam tribe. But Frank was also the first to give praise and support, he said.


Only weeks ago, he and other tribal members met with federal environmental regulators to push for more stringent water quality standards to reduce the amount of pollution that accumulates in fish. The standards would especially protect native people who eat large amounts of salmon and other fish from Washington state waters.


Merle Hayes, fisheries policy liaison with the Suquamish tribe, had known Frank for 25 years.


"He's been so inspiring to all the tribes," Hayes said. "He believed in the work that he was doing."


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2K Games releasing doc chronicling art contest

The Associated Press



The next release from 2K Games, the publisher of such interactive adventures as the sci-fi shoot-'em-up series "Borderlands" and the alternate history saga "BioShock," won't be another out-of-this-world game. It's a film planted firmly in reality. With the release of "The Art of the Game," 2K is becoming the latest game maker to trade interactivity for a documentary.


The feature-length movie is scheduled to debut for free Thursday on Machinima's Twitch.tv channel and later on Xbox Live and YouTube. It chronicles budding game designers at the Academy of Art University in San Francisco, who competed last year for an internship at 2K by creating computer-generated short films set in the fictional realm from the "Borderlands" games.


2K commissioned Matthew Davis Walker, who previously produced the music doc "Muscle Shoals," and his production company Story Developing to craft the film, which is interwoven with profiles of folks from across the gaming world, such as transgendered game designer Mattie Brice and Wii bowlers from the Sullivan Senior Center in Torrington, Connecticut.


"The last thing we wanted to make was a commercial," said Walker. "2K was a wonderful partner because they were able to be so open-minded about what we brought them. We wanted to approach the industry from a wide-ranging perspective, whether it was education involving children, design with the college students or the older generation playing games."


Kelly Miller, the marketing manager behind the film at 2K, said the company originally decided to hold the contest at the Academy of Art University because of the school's interest in game design and proximity to 2K headquarters in Novato, California. The notion of documenting the process, including equipping students with cameras to film themselves, came later.


"It didn't start as an hour-long documentary," said Miller. "When we began the project with the students, we immediately realized we wanted to follow them and tell their story. We then started working with Story Developing and talking about what would be the best format to do that, and it just felt like the right format. There was a lot of depth there."


Ultimately, 2K greenlit three short films to be produced by Academy of Art University students outside of their classwork, and "The Art of the Game" follows their creation from storyboard concepts to final products, with a pair of participants later earning jobs with the company. The three winning short films will be released digitally alongside the documentary.


Despite the filmmakers' pure intentions, "The Art of the Game" is the latest example of a game publisher moving into the documentary business and blurring the lines between creativity and advertising. (The majority of the professional game designers who appear in "The Art of the Game" are employed by 2K Games Inc. owner Take-Two Interactive Software Inc.)


In March, "Portal" and "Dota 2" publisher Valve Corp. released its own self-produced, feature-length doc online called "Free to Play: The Movie." The e-sports chronicle focuses on three players who competed for the $1 million prize in the first-ever "Dota 2" international tournament in 2011 in Cologne, Germany. It's amassed over 1.9 million views on YouTube.


Activision Blizzard Inc. recently enlisted Vice Media, which publishes books and a magazine, as well as produces its own HBO documentary series, to create a video released last week about real-world private military contractors. The video promoted the next "Call of Duty" installment, "Call of Duty: Advanced Warfare," which stars "House of Cards" star Kevin Spacey.


In recent years, games have been the subject of several documentary films, including 2012's stressed-out game-making tale "Indie Game: The Movie," 2008's haunting online game addict profile "Second Skin," 2007's record-breaking arcade recount "The King of Kong: A Fistful of Quarters" and 2004's puzzle game profile "Tetris: From Russia with Love."


Other game-centric documentaries set for release this year include "Atari: Game Over," a chronicle of last month's excavation of a landfill filled with copies of old-school Atari games that's part of Xbox Entertainment Studios' six-part series "Signal to Noise," as well as "Gameplay: The Story of the Videogame Revolution" from filmmaker Richard Goldgewicht.


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Online:


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Cancer treatment pricy but spending is moderating

The Associated Press



Astronomical prices for breakthrough new cancer drugs are pushing up treatment costs for patients as well as insurers, making it tougher for patients to complete lengthy therapy at a time when it's increasingly effective.


Global spending on cancer medicines hit $91 billion last year, up from $71 billion in 2008 and $37 billion a decade ago, according to a report from the IMS Institute for Healthcare Informatics. That's despite factors that have slowed the average annual increase in cancer drug spending to 5.4 percent over the past five years, down from 14.2 percent increases each year from 2003 to 2008.


"We'll cross (the $100 billion) threshold in the next year or so," predicted Murray Aitken, the institute's executive director. That amount would be about 10 percent of worldwide spending on all prescription drugs.


In the U.S., a month's supply of a brand-name cancer drug is now about $10,000, double what it was a decade ago, according to the report. The most expensive drug, at $117,648 for a course of treatment, is Bristol-Myers Squibb Co.'s Yervoy, the first drug to prolong survival in patients in advanced stages of the skin cancer melanoma.


Treatment is costing U.S. patients more partly because of sweeping changes in the health care system.


Employer-based insurance plans increasingly are shifting onto patients much higher copayments and deductibles — the amount patients must pay before insurance kicks in. More patients buying their own insurance have been choosing plans with high deductibles, a strategy to reduce monthly premiums.


And many cancer specialists are giving up private practice to work for hospitals, which because of their high overhead usually charge at least twice as much for each infusion of chemotherapy drugs as a doctor's office. Aitken noted that patient out-of-pocket costs can exceed $2,000 per dose, although patient assistance and other programs can help.


On average, an insured patient's total outlay for a year's cancer treatment is about $9,000, excluding any assistance programs, with the insurance company covering the remaining $115,000, according to Aitken. Patients receiving older cancer drugs available as generics would pay less, while those taking the very pricey new drugs likely would lay out more.


The higher the patients' costs, the more drop out of treatment before finishing. For example, the report notes that when copayments for hormonal breast cancer treatment exceed $30, there is a 10 percentage point drop in the number of patients who complete therapy, compared with when the copay is $30 or less. For patients who stop therapy and resume it later, the combined patient and insurer costs can jump 50 percent.


For those who do complete treatment, there's a higher chance of surviving longer, partly because newer cancer drugs precisely target individual cancer cells rather than indiscriminately killing healthy cells while attacking tumors.


"The willingness to pay for these breakthrough drugs is strong," Aitken said.


That's because the most innovative and expensive drugs can prolong life from two to six months on average, he said. Overall, the five-year survival rate for all cancers combined in the U.S. climbed from about 57 percent in 1990 to about 65 percent, due to both better treatments and earlier detection.


In the U.S., total spending on cancer drugs reached $37 billion in 2013, but increased only about 3.5 percent in each of the last five years, for a variety of reasons. Many older cancer drugs are now available as less-expensive generics. The newest ones often are replacing drugs just launched a few years ago that are nearly as expensive, and the most-expensive new cancer drugs generally are for rarer types of cancer.


Worldwide, the growth rate for cancer drug spending also is being restrained because government health programs in the top European markets are demanding big discounts — often 20 percent to 40 percent off the U.S. average price — and more of the drugs are being sold in poorer countries, where prices are even lower.


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Online, report available after 9 a.m. EDT Tuesday: http://bit.ly/RmZk7C



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Weaker sales slowed US home price gains in March

The Associated Press



U.S. home prices rose at a slightly slower pace in the 12 months that ended in March, a sign that weak sales have begun to restrain the housing market's sharp price gains.


Data provider CoreLogic says prices rose 11.1 percent in March compared with March 2013. Though a sizable increase, that was down a bit from February's 12.2 percent year-over-year increase.


On a month-to-month basis, prices in March rose 1.4 percent from February. But CoreLogic's month-to-month figures aren't adjusted for seasonal patterns, such as warmer spring weather.


Home sales and construction have faltered since last fall, slowing the economy. A harsh winter, higher buying costs and a limited supply of available homes have discouraged many potential buyers. Existing-home sales in March reached their lowest level in 20 months.


Some signs suggest that buying might be picking up a bit as the spring season gets underway. Signed contracts to buy homes rose in March for the first time in nine months, the National Association of Realtors said last week.


Even so, economists forecast that sales of existing homes will barely rise this year from 2013's pace of 5.1 million. Sluggish sales, in turn, will slow annual price gains this year to roughly 5 percent or 6 percent, economists predict. CoreLogic forecasts that prices will increase just 6.7 percent in the 12 months that will end next March.


Higher prices typically encourage some homeowners to sell, yet the number of homes on the market remains low. CoreLogic's chief economist, Mark Fleming, said many homeowners might be reluctant to sell because they've locked in low mortgage rates and are hesitant to buy a home with a higher-rate mortgage.


The Federal Reserve's bond-buying program helped reduce the average rate on a 30-year fixed mortgage to as low as 3.3 percent in early 2013. The average is now about 4.3 percent, according to mortgage buyer Freddie Mac.


Fleming calculates that about a third of homeowners with mortgages are paying rates below 4 percent. An additional 15 percent are paying around the current average of 4.3 percent. That means roughly half of homeowners with mortgages are paying rates at or below the current level — roughly double the percentage of a year ago.


Home prices in California have jumped 17.2 percent from a year ago, CoreLogic said. Nevada, at 15.5 percent, has posted the second-largest gain, followed by Georgia, at 12.4 percent; Hawaii, 12.3 percent; and Oregon, 12.2 percent.


The Riverside-San Bernardino, California, metropolitan area reported the largest price gain over the past 12 months: 20.9 percent. It was followed by Los Angeles-Long Beach, with a 17.1 percent gain; Atlanta-Sandy Springs, 14.1 percent; Houston-Sugar Land, at 13.7 percent; and Chicago-Naperville, 11.3 percent.


Home sales and construction began recovering about two years ago after being hammered by the housing bust and Great Recession. But a jump in mortgage rates last spring caused sales of existing homes to start falling in the summer.



US to let some high-skilled immigrant spouses work

The Associated Press



The Obama administration wants to allow some spouses of high-skilled immigrants to work in the United States, the departments of Homeland Security and Commerce announced Tuesday.


The rule change, which is set to be published in the Federal Register later this week, would affect spouses of as many as 100,000 holders of H-1B high-skilled visas.


"The proposals announced today will encourage highly skilled, specially trained individuals to remain in the United States and continue to support U.S. businesses and the growth of the U.S. economy," said Homeland Security Deputy Secretary Alejandro Mayorkas.


Commerce Secretary Penny Pritzker said the rule change would help the U.S. attract and keep "world-class talent" working in the United States.


The new rule is the latest in a series of administrative actions President Barack Obama has announced as efforts to win broad immigration reform in Congress have failed.


Immigration advocates have been pushing Obama to make substantive changes to immigration laws, including halting all deportations until and unless Congress acts on a comprehensive immigration bill. The rule proposed Tuesday would not impact deportations, but could at least partially satisfy requests from the tech industry for the government to make it easier to attract and keep foreign workers trained in science, technology, engineering and math.


The H-1B visas for high-skilled workers are among the most sought-after by high-tech firms. Earlier this year the 85,000 H-1B visas available for 2015 were gobbled up in just a week. The same thing happened last year.



Barclays profits fall, hit by investment bank


Barclays PLC has posted a 5 percent fall in profits for the first three months of the year as earnings from its investment bank business slumped.


The British bank said Tuesday that its adjusted pre-tax profits fell to 1.69 billion pounds ($2.87 billion).


Barclays had warned last month that it would be hit by the performance of its investment bank division, which saw income from its fixed income, credit and commodities business fall by 41 percent.


Barclays Chairman David Walker has hinted at a shrinking of the investment banking arm, potentially cutting thousands of jobs.


However, the bank said its British retail and business banking arms performed well in the first quarter, with pre-tax profits up 20 percent to 360 million pounds.



Oil stays below $100 as Ukraine tensions fester


The price of oil rebounded Tuesday after Ukraine's government announced pro-Russian insurgents and Ukrainian government troops were killed in fighting in the country's east.


Benchmark U.S. crude for June delivery was up 33 cents to $99.81 a barrel at 0935 GMT in electronic trading on the New York Mercantile Exchange. The contract fell 28 cents to close at $99.48 on Monday, reflecting the possibility of weaker demand due to lackluster Chinese manufacturing.


Brent crude, a benchmark for international varieties of oil, gained 26 cents to $107.98 on the ICE exchange in London.


Markets have seesawed as concern over the possible impact of Ukraine tensions on energy supplies competes with data suggesting growth in China, the world's second-largest economy, is cooling. Further violence in Ukraine's east, where militants are agitating for closer ties with Russia, could result in tougher Western sanctions against Russia, a major oil and gas producer.


In Ukraine, the interior minister said 30 pro-Russian insurgents were killed in fighting in and near the city of Slovyansk as the national government tries to reassert control over the region. The minister said four government troops were killed and 20 injured.


In other energy futures trading on Nymex:


— Wholesale gasoline was up 0.4 cent at $2.913 a gallon.


— Heating oil added 1.1 cents to $2.917 a gallon


— Natural gas added 2.5 cents to $4.713 per 1,000 cubic feet.



Light rain, high wind cause road accident, traffic


BEIRUT: Several people were injured Tuesday when six vehicles crashed into each other in north Lebanon due to bad weather conditions.


The National News Agency said the accident took place on al-Hasniyi-Arqa road, adding that the wounded were transferred to nearby hospitals.


The weather also caused high waves on the Ain al-Mreisseh road, causing suffocating traffic on the bustling seaside street. In the coastal city of Sidon, high waves forced many fishermen to return to the docks and remain indoors.


Temperatures significantly dropped Tuesday, following days of warm winds and high temperatures.


Lebanon will be witnessing light rain and strong winds for the next three days, according to the Meteorology Department at Rafik Hariri International Airport.


On Wednesday, the weather is expected to remain partly cloudy with a chance of light rain and a temperature of 28 degrees Celsius in Beirut. While in the north and east of the country, temperatures will range between 16 to 24 degrees Celsius.



Rai stands firm on decision to visit Jerusalem


BEIRUT: Maronite Cardinal Beshara Rai Tuesday stood firm on his decision to visit to occupied Jerusalem that has stirred controversy in Lebanon, saying the trip was part of his duties as a patriarch of the Antioch and the Levant.


“The pope is coming to the Holy Land and I am the one who should welcome him ... it is part of my prerogative as a patriarch of the Antioch and the Levant to go there,” Rai told reporters at the Rafik Hariri International Airport upon his arrival from France.


“I consider myself going to my home and to my people ... Jerusalem existed and was our home long before Israel was created,” he said, adding that his duties as a church leader meant he should visit Maronite parishes every five years.


“I realize Lebanon considers Israel an enemy ... which is why I asked not to meet with [Israeli] officials there,” he said.


Some Lebanese have criticized Rai’s visit to Jerusalem, saying such a trip could be seen as a bid to normalize ties with Israel which is technically in a state of war with Lebanon.


Rai, the first head of the Maronite Church to visit occupied Jerusalem, blasted media outlets that has criticized his visit, saying: “To anyone who is annoyed or embarrassed by my visit, you can be exempt from visiting Bkirki.”


“Those who write about me should respect me ... no one should tell me what my duties are,” he said, noting that the council of bishops in Bkirki had agreed to the visit.


Rai’s predecessor, Cardinal Nasrallah Sfeir, had apologized to Pope Paul II, refusing to go along on his visit to Israel and instead joining him only on his trip to Jordan.



GM recalls about 60,000 Saturns to fix gear shifts


General Motors is recalling about 56,214 Saturn Aura midsize cars in the U.S. because the automatic transmission shifters can fail.


The recall affects certain cars from the 2007 and 2008 model years with four-speed transmissions.


GM says a shift cable can fracture. If the problem happens while the car is moving, the driver won't be able to shift into "Park" or remove the ignition key. That increases the risk of the car rolling away unexpectedly.


The company will notify owners and replace the cable and mounting bracket at no cost to owners. GM hasn't determined yet when repair parts will be available.


GM says the cars were made between April 24, 2006 and Oct. 31, 2007. GM stopped making Saturn vehicles in 2009 as it headed into bankruptcy protection.



Markets on edge ahead of Yellen testimony


World stocks were kept in check Tuesday as improvement in U.S. service industries competed with concern about renewed fighting in Ukraine.


Oil rebounded to close to $100 a barrel after Ukraine's interior minister announced fighting in an eastern city killed pro-Russian militants and government troops.


In Europe, Germany's DAX declined 0.1 percent to 9,517.72 while the CAC-40 in France shed 0.1 percent to 4,458.27. Britain's FTSE 100 fell 0.2 percent to 6,809.91.


On Wall Street, futures for the Standard & Poor's 500 and Dow Jones industrial average each gained 0.2 percent. U.S. markets rose Monday after the Institute for Supply Management's index for services industries that are a crucial driver of U.S. growth rose to 55.2 in April from March's 53.1. A reading above 50 indicates expansion.


China's benchmark Shanghai Composite Index was flat at 2,028.04 after April manufacturing, reported Monday, fell short of expectations. Taiwan's Taiex added 0.5 percent to 8,912.39.


Singapore rose while New Zealand, Jakarta and Manila fell. Tokyo, Hong Kong and Seoul were closed for holidays.


Sentiment was underpinned by the ISM report that activity in U.S. service industries grew at its fastest rate in eight months in April.


"This continues the recent trend of positive US data, suggesting the economy is entering into a robust growth patch," said Mizuho Bank in a report.


Australia's S&P/ASX 200 added 0.4 percent to 5,481.40 and India's Sensex gained 0.2 percent to 22,493.54.


In energy markets, benchmark U.S. crude for June delivery added 30 cents to $99.78 in electronic trading on the New York Mercantile Exchange. The contract fell 28 cents on Monday to settle at $99.48.


The euro rose to $1.3927 from $1.3877 late Monday. The dollar fell to 101.96 yen from 102.11 yen.



Swift Energy to expand Eagle Ford operations


Swift Energy Co. and PT Saka Energi Indonesia have agreed to develop about 8,300 acres of Fasken field Eagle Ford shale properties in South Texas.


The companies on Tuesday announced the $175 million deal, expected to close in late June, involving their subsidiaries and Swift Energy properties in Webb County.


Saka will have a 36 percent interest in Swift Energy's Fasken properties. Houston-based Swift Energy will continue to serve as the site operator.


Swift Energy also announced an expanded agreement for natural gas gathering services in Webb County with Howard Energy Partners and its affiliates. Swift Energy expects to have up to 160 million cubic feet of gas per day of firm capacity for its Fasken area natural gas production.


The updated capacity should be available early next year.



Lower costs help Germany's Lufthansa trim Q1 loss


Lufthansa says it narrowed its loss in the first quarter thanks to a cost-cutting program and lower fuel prices. Germany's biggest airline is sticking to its full-year earnings targets even though it took a financial hit from a pair of strikes.


Deutsche Lufthansa AG said Tuesday that it lost 252 million euros ($350 million) in the January-March period, compared with 458 million euros a year earlier. Revenue declined to 6.46 billion euros from 6.63 billion euros.


The company confirmed its forecast of a 2014 operating profit between 1.3 and 1.5 billion euros despite strikes by airport ground staff in March that hit Lufthansa's Frankfurt hub and a three-day walkout last month by the airline's pilots.


Lufthansa said the strikes reduced earnings by 70 million euros.



Twitter stock slumps as lock-up expires


Twitter's stock is down to an all-time low after a post-IPO lock-up period preventing employees and early investors from selling expired Tuesday.


Lock-up periods prevent company insiders from selling stock following an initial public offering. CEO Dick Costolo and co-founders Jack Dorsey and Evan Williams have said that they have no plans to sell their stock when the lock-up expired, 180 days after Twitter's initial public offering.


Still, Twitter's stock fell nearly 11 percent on Tuesday, to $34.61. Earlier, shares hit their lowest point ever at $34.55.


Twitter went public on Nov. 7. The stock later soared as high as $74.73.


San Francisco-based Twitter's latest earnings report surpassed expectations, but worries about user growth and engagement weighed on its stock.



France says GE offer for Alstom not good enough


French President Francois Hollande says that an offer by General Electric Co. for troubled French engineering company Alstom is not good enough and wants the U.S. company to come up with a better deal.


The $17 billion bid for Alstom's energy activities has prompted resistance within the French government, which is struggling to revive the country's industrial base and stay globally competitive.


Alstom calls GE's offer "practically perfect" and is ready to accept, but bowed to government pressure to wait amid discussion of other options. Alstom pioneered high-speed TGV trains and manufactures turbines for power plants, but has struggled in recent years and was rescued by a government bailout in 2005.


Hollande said on BFM television Tuesday that the bid is "not good enough today, it's not acceptable."


He didn't reject the idea of a takeover, but instead appeared to be pushing for a better offer. He said that even though the decision is up to Alstom, the government is an Alstom client and "has enough means of pressure to end up with something that is good for Alstom, good for French industry."


Economy Minister Arnaud Montebourg, a leftist firebrand who has vociferously resisted foreign bids for French companies, is proposing a "partnership" instead of a straight buyout.


In a letter Montebourg sent Monday to GE CEO Jeffrey Immelt, the French minister suggests that GE sell its transport activities to Alstom, while GE buys Alstom's energy activities.


In response, GE said in a statement, "We believe our proposal is good for France, for Alstom and for GE" and said it is "open to continuing dialogue."


Connecticut-based GE, in a letter to Hollande last week, promised to increase jobs, investment and energy activities in France, not cut them.



Detroiters could get option to fund more services


Detroit residents could get the option to pay for enhanced security, snow removal and mosquito abatement in their neighborhoods through a special assessment on property tax bills.


The Detroit Free Press reports (http://on.freep.com/RjsW65 ) the supporters of the special assessment district ordinance passed unanimously by City Council last week say it can enhance services that the city can't afford, stabilize neighborhoods and eventually increase property values.


Some residents, however, balk at the cost.


The ordinance needs the OK from state-appointed emergency manager Kevyn Orr, who is reviewing the matter.


Neighborhood leaders or organizations would propose the new fee to residents, and if a simple majority of property owners approve, taxpayers within the neighborhood's boundaries must pay. The cost would depend on the neighborhood and what services would be provided.



Collier and McKeel whiskey sold to Calif. group


Tennessee Distilling Co. is selling its brands including Collier and McKeel Tennessee Whiskey to California-based North Coast Spirits.


Founder Mike Williams says the spirit named after his ancestors will continue to be distilled in Nashville after the sale. Terms were not disclosed.


Williams said a decision by state lawmakers this year not to roll back the legal definition of Tennessee whiskey helped boost the value of the Collier and McKeel, which is currently available in 21 states and Australia. That law requires whiskey to be charcoal filtered and stored in unused oak barrels.


The Tennessee Distilling Co., which makes its spirits about a mile from the state Capitol in Nashville, has been in business since 2009 and was an early participant in a boom in craft distilling in the state.