Qatar plans $11B oil field redevelopment

DOHA, Qatar -- Qatar's state oil company said Friday it plans to spend $11 billion to redevelop one of its offshore oil fields, aiming to extend its lifespan and double its output.

Oil production at the Bul Hanine oil field relies on older technology and has been declining in recent years.

The field is located about 120 kilometers (75 miles) to the east of the OPEC nation's coastline.

Qatar Petroleum said the project involves the drilling of about 150 new wells through 2028 as well as new offshore production facilities and a gas liquids processing facility on land.

The field has the capacity to produce about 45,000 barrels of oil per day, according to the U.S. Energy Information Administration.

FAA: Jet nearly collided with drone over Florida

SAN FRANCISCO -- Federal officials say a U.S. jet airliner nearly collided in March with an airborne drone in the sky over Tallahassee, Florida.

Jim Williams of the Federal Aviation Administration's unmanned aircraft systems office acknowledged the incident Thursday at a San Francisco drone conference, citing it as an example of the risks posed by integrating drones into U.S. airspace.

"The risk for a small UAS (unmanned aircraft system) to be ingested into a passenger airline engine is very real," Williams told the conference, pointing out that the famous 2009 "Miracle on the Hudson River" flight was forced to splash down in the water after a flock of geese went through its engines.

The near collision with the drone was reported to air traffic control on March 22 by the pilot of an American Airlines Group jet as the pilot approached the Tallahassee runway en route from Charlotte, North Carolina.

"The airline pilot said that the UAS was so close to his jet that he was sure he had collided with it," Williams said. "Thankfully, inspection of the airliner after landing found no damage."

The pilot of the 50-seat Canadair Regional Jet CRJ-200 airliner said the camouflage-colored drone was at an altitude of about 2,300 feet, five miles northeast of the airport. FAA rules state that the aircraft should be kept below 400 feet above ground level and should be flown a sufficient distance from full-scale aircraft.

The agency "is working aggressively to ensure the safe integration of unmanned aircraft systems (UAS) into the national airspace," the FAA said in a statement Friday, adding: "Our challenge is to integrate unmanned aircraft into the busiest, most complex airspace in the world. Introduction of unmanned aircraft into America's airspace must take place incrementally and with the interest of safety first."

The FAA has investigated the incident, but said it had been unable to identify the drone's operator.

The law currently requires that private individuals flying model aircraft notify the airport operator and air traffic control facility when flying within five miles of an airport, it added.

American Airlines spokesman Paul Flaningan said the airline was aware of the alleged incident and that it was investigating the matter.

The use of drones has increased dramatically in the past few years as the devices have become cheaper and more accessible to the average consumer.

Last week, the National Park Service issued a statement reminding visitors that federal regulations ban the use of drones within Yosemite National Park.

Drone sightings there have become a nearly daily occurrence in the venerated national park, with the devices buzzing loudly near waterfalls, above meadows or over treetops as guests use them to capture otherwise impossible-to-get photographs of the breathtaking landscape.

Scott Gediman, a park ranger for nearly two decades, said drones can interfere with emergency rescue operations and disrupt the activities of sensitive or endangered wildlife.

Gediman told the Associated Press that the noise of the devices can put a damper on the park experience for some visitors.

But, he added, "Most if not all of the people using these are simply unaware that they're illegal."

Postal service had $1.9 billion quarterly loss

WASHINGTON -- The Postal Service says it lost $1.9 billion over the first three months of this year and is pleading again for Congress to pass reforms to its financial system.

The agency said Friday that the loss for the quarter ended March 31 matched the $1.9 billion in red ink in the same period last year. And it came despite a 2.3 percent rise in its operating revenue and continued cost-cutting efforts.

Postal officials have been asking for comprehensive legislation that includes a different delivery schedule, greater control over its personnel and benefit costs and more flexibility in pricing and products.

Though various legislative proposals have been advanced, Congress has been unable to pass a bill with the requested changes.

Connecticut budget averts $4.5M cut to legal aid

HARTFORD, Conn. -- Connecticut lawmakers have averted a looming $4.5 million cut to legal aid services that lawyers for the poor say would have forced them to turn away hundreds of low-income people seeking help with court cases involving domestic violence, eviction and health care.

The General Assembly approved a plan to continue using increased court filing fees to fund legal aid, as part of a massive budget bill adopted just before the legislative session ended Wednesday and sent to Gov. Dannel P. Malloy for his signature. The increased fees approved in 2012 to stabilize legal aid were set to expire next year.

The $4.5 million cut likely would have resulted in the layoffs of at least 35 legal aid staffers around the state, or about a quarter of the current staff, said Steve Eppler-Epstein, executive director of Connecticut Legal Services, which serves 122 of the state's 169 cities and towns.

"It would have been a catastrophe," he said. "We would have had no choice but to lay off legal aid staff at a time when people need help the most."

Dwindling legal aid funding in recent years already has led to staff and service reductions and forced legal aid lawyers to focus on the most pressing cases. Those cases involve women seeking protection from domestic violence, housing tenants seeking to avoid homelessness in eviction cases and families seeking care for disabling health conditions, legal aid lawyers say.

The Connecticut Bar Foundation expects to distribute about $15.7 million to legal aid offices statewide this year, including about $12 million from the court filing fees.

Lawmakers approved the increased fees in 2012 after a main source of legal aid funding — interest from trust accounts set up by lawyers for their clients — plummeted during the recession and amid low interest rates, dropping from $20 million in Connecticut in 2008 to $1 million in 2012.

The state Judicial Branch supported making the fee increases permanent.

"The Judicial Branch recognizes the critical need that legal aid organizations have in enhancing access to the courts for those unable to afford an attorney," said Judge Patrick L. Carroll III, the chief court administrator.

New Rules Aim To Streamline GOP's 2016 Nominating Process

i i

hide captionThe RNC wants to see many fewer of these presidential debate scenes in 2016. Before a November 2011 Michigan showdown, from left: former Pennsylvania Sen. Rick Santorum; Minnesota Rep. Michele Bachmann; former House Speaker Newt Gingrich; former Massachusetts Gov. Mitt Romney; businessman Herman Cain; Texas Gov. Rick Perry; Texas Rep. Ron Paul; former Utah Gov. Jon Huntsman.

Paul Sancya/AP

The RNC wants to see many fewer of these presidential debate scenes in 2016. Before a November 2011 Michigan showdown, from left: former Pennsylvania Sen. Rick Santorum; Minnesota Rep. Michele Bachmann; former House Speaker Newt Gingrich; former Massachusetts Gov. Mitt Romney; businessman Herman Cain; Texas Gov. Rick Perry; Texas Rep. Ron Paul; former Utah Gov. Jon Huntsman.

Paul Sancya/AP

If there are other Herman Cains and Michele Bachmanns out there with 2016 presidential hopes, it may be much harder than it was in 2012 for them to go from "who?" to Republican presidential contenders. That's because of new rules adopted Friday by the Republican National Committee at its meeting in Memphis, Tenn.

And that's exactly how the Republican establishment wants it. The 2012 GOP nomination fight — where virtually every candidate not named Mitt Romney took the polling lead at some point after a strong debate performance, only to wilt under the increased scrutiny that goes with such success — was a lengthy and costly affair that used up energy needed for the general election.

Facing the possibility of a Hillary Clinton 2016 Democratic juggernaut, the RNC is clearly trying to put the party in the best position to regain the White House. So the RNC has been aggressively trying to reassert control.

On Friday, its members voted on new rules to punish any presidential candidate who attends a debate unsanctioned by the party. A candidate who attends such a nonsanctioned debate would lose his or her right to participate in later debates sanctioned by the RNC.

"We took action this week to take ownership of the primary debates," RNC Chairman Reince Priebus told his members attending the Memphis meeting. "Our candidates deserve a fair hearing. Our voters deserve a real debate. And the liberal media doesn't deserve to be in the driver's seat."

The goal is to avoid 2012's topsy-turvy, carnival-like atmosphere. That year, the news media and Tea Party dictated much of the process, which resulted in 20 debates overall. While they made for sometimes very entertaining TV, relatively speaking, and a very volatile race, they didn't help Romney, the eventual nominee.

The debates forced the well-funded and well-known former Massachusetts governor to move further to the right than he otherwise might have (self-deportation, anyone?) and sapped valuable time he could have better spent campaigning in key primary states.

Meanwhile, because they gave the other candidates frequent chances to appear on the same stage with Romney, the GOP establishment's preferred candidate, the debates became the way the party's sizable "anybody but Romney" segment found one alternative, then another to rally behind.

The new rules establish a 13-member committee to decide the details of the debates, including the ultimate number — expected to be 10 at most. Reining in the debates is part of the RNC's overall strategy to make its nominating process work better for the candidate favored by the party establishment. The party also acted to shorten its primary calendar.

It increased the number of national convention delegates a state party will lose if it tries to jump ahead of traditionally early caucuses in Iowa and the New Hampshire primary.

It also moved its convention to earlier in the summer, giving the eventual nominee more time to campaign against the Democratic nominee, whether it's Clinton — in which the more time the better — or someone else.

McDonald's tests seasoned french fries

NEW YORK -- McDonald's says it plans to start testing seasoned french fries at select U.S. locations starting Friday.

The world's biggest hamburger chain says the test of its "Shakin' Flavor Fries" will take place at restaurants in northern California and St. Louis. Customers will be able to choose garlic Parmesan, spicy Buffalo or zesty ranch flavors.

McDonald's spokeswoman Lisa McComb says the idea came from the company's "Shake Shake" seasoned fries, which debuted in Hong Kong in 2005 before spreading to countries including China, India and Australia.

The website GrubGrade.com had published photos of the seasoned fries at a McDonald's in Stockton, California, on Thursday. The packaging includes directions telling people how to pour the seasoning onto french fries in a bag and shake them.

"As with all tests, we aren't in a position to draw conclusions or make assumptions about the test since it is just beginning but we hope our customers in these two markets enjoy the new flavors," McComb said in an email.

McDonald's, based in Oak Brook, Illinois, has more than 35,000 locations around the world.

Firm: 38 Studios default would bring 'junk' status

PROVIDENCE, R.I. -- Defaulting on the debt related to 38 Studios' bankruptcy would sink Rhode Island's bond rating to junk status and could harm the state's overall business climate, an independent analyst predicted in a report released Friday.

The report from Minnesota-based SJ Advisors said default would bring increased borrowing costs and harm to the state's reputation, and could lead to a "contagion effect impacting other Rhode Island issuers and even taint the business environment."

The firm believes the most likely scenario with a default would have the state paying nearly $126 million more than the cost of honoring the debt. Even under the best-case scenario, the state would pay $36 million more.

The General Assembly called for the outside analysis last year as it reluctantly approved the first payment, from state funds, to bondholders who financed the 38 Studios deal. The $2.4 million payment was due May 1.

But some lawmakers say taxpayers shouldn't foot the bill for what was a colossally bad transaction. They have been pushing default on the remaining $87 million that Rhode Island owes under the deal that gave 38 Studios a $75 million state-backed loan. The loan was financed by so-called moral obligation bonds, for which there is no legal repayment requirement.

Senate President Teresa Paiva Weed, D-Newport, said Friday the state should honor the debt.

"The responsible course of action is to repay the state's obligation while pursuing litigation and every means to recoup costs on behalf of the taxpayers," she said in a statement.

The state's economic development agency is suing 38 Studios founder and former Red Sox pitcher Curt Schilling and others over the collapse of his video game company. It says the board was misled into approving the deal that helped lure the company from Massachusetts to Providence.

House Speaker Nicholas Mattiello, D-Cranston, hasn't yet taken a position on repaying.

"This report provides House members with some good information that will help us to formulate a fact-based decision on the bond repayment," he said in a statement. "The report will be considered, along with the examination of various aspects of this issue by the House Finance and Oversight committees."

John Simmons, executive director of the business-backed Rhode Island Public Expenditure Council, testified before House Oversight on Thursday that a default would cost the state more than the 38 Studios debt.

Gov. Lincoln Chafee's administration conducted an analysis last year that similarly concluded a default would harm the state's financial reputation and lead to significantly higher borrowing costs. He insists the state must make good on the debt, no matter how distasteful it is.

The state is paying up to $75,000 for the SJ Advisors report.

Georgia Tech loses 2 football staff members

ATLANTA -- Georgia Tech athletic director Mike Bobinski says two members of the football staff have left the program.

Bobinski said Friday Matt Griffin, director of player personnel, is no longer associated with the program. Also, Dave Walkosky, the Yellow Jackets' special teams coordinator the last two seasons, has resigned to pursue other opportunities.

Bobinski said both changes take effect immediately.

Beckham, investor promise star power for stadium

MIAMI -- David Beckham and his business partner say the soccer star's brand will draw television revenues and sponsorships to a Major League Soccer stadium they want to build in Miami.

Beckham and Simon Fuller met with The Miami Herald's editorial board Thursday (http://hrld.us/1fTMw3K ). They want to build a privately financed $250 million stadium on public land near the port of Miami.

Fuller said the venture would "generate more money than any other MLS team can dream of." Beckham's group dislikes a proposal to build their stadium next to the Miami Marlins' ballpark.

Royal Caribbean Cruises is among the critics of a port stadium, saying it would hurt the cargo and cruise industries. Chairman Richard Fain told the editorial board last week that the plan is "not a financially viable transaction."

Initial public offerings scheduled to debut next week

NEW YORK -- The following is a list of initial public offerings planned for the coming week. Sources include Renaissance Capital, Greenwich, CT (http://bit.ly/1noLGfa) and SEC filings.

Week of May 12:

Bankwell Financial Group Inc. - New Canaan, Conn., 2.2 million shares, priced $21 to $24, managed by Sandler O'Neill and Keefe Bruyette Woods. Proposed Nasdaq symbol BWFG. Business: Commercial bank holding company with seven offices in Connecticut.

ECM Energy Services Inc. - Scottsdale, Ariz., 2.5 million shares, priced $7 to $9, managed by Maxim Group. Proposed NYSE-MKT symbol ECME. Business: Provides oil and gas equipment rentals and related services across the U.S.

ETRE REIT - New York, 3.7 million shares, priced $14 to $16, managed by Sandler O'Neill. Proposed Nasdaq symbol ECAV. Business: Recently formed to own and operate an office building in Washington, D.C.

Jumei International Holding Ltd. - Beijing, China, 9.5 million American depositary shares, each representing 1 class A ordinary share, priced $20 to $22, managed by Goldman Sachs Asia, Credit Suisse, and J.P. Morgan. Proposed NYSE symbol JMEI. Business: China's largest online beauty products retailer.

SD Company Inc. - Vernal, Utah, 5 million shares, priced $5 to $7, managed by Roth Capital. Proposed NYSE-MKT symbol SDPI. Business: Manufactures new drill bit and horizontal drill string enhancement tools for the oil, natural gas and mining services industry.

ServisFirst Bancshares Inc. - Birmingham, Ala., 625,000 shares, priced $91 to $93, managed by Sandler O'Neill and Raymond James. Proposed Nasdaq symbol SFBS. Business: Commercial bank with 12 branches in Alabama, Florida and Tennessee.

Tecogen Inc. - Waltham, Mass., 2 million shares, priced $4.75 to $5.75, managed by Scarsdale Equities. Proposed Nasdaq symbol TGEN. Business: Sells and services commercial natural gas-powered cogeneration systems.

TrueCar Inc. - Santa Monica, Calif., 7.8 million shares, priced $12 to $14, managed by Goldman Sachs, J.P. Morgan, and RBC Capital Markets. Proposed Nasdaq symbol TRUE. Business: Online platform allowing consumers to get guaranteed pricing on new cars.

Zendesk Inc. - San Francisco, 11.1 million shares, priced $8 to $10, managed by Goldman Sachs, Morgan Stanley, and Credit Suisse. Proposed NYSE symbol ZEN. Business: Software development company with over 42,000 client accounts, that provides a software-as-a-service, customer service platform.

Report: Apple on verge of buying Beats for $3.2B

SAN FRANCISCO -- Apple is orchestrating a $3.2 billion acquisition of Beats Electronics, the headphone maker and music streaming distributor founded by hip-hop star Dr. Dre and music industry impresario Jimmy Iovine, according to a published report.

Citing people familiar with the negotiations, The Financial Times says Apple could announce the deal as early as next week. In its report posted online late Thursday, the newspaper warned the talks could still collapse if the two sides cannot agree on some final details.

Both Apple Inc. and Beats Electronics declined to comment to The Associated Press.

The potential acquisition would add Beats Electronics' popular line of headphones and music streaming service to an Apple line-up that already includes digital music players and the iTunes store, the world's top music retailer.

If the deal is completed, it would be by far the largest purchase in Apple Inc.'s 38-year history.

The Cupertino company has traditionally seen little need to buy technology from other companies, reflecting Apple's confidence in its ability to turn its own ideas into revolutionary products such as the Mac computer, the iPod, the iPhone and the iPad.

But Apple hasn't released a breakthrough product since its former CEO and chief visionary, Steve Jobs, died in October 2011. The innovative void has increased the pressure on Jobs' hand-picked successor, Tim Cook, to prove he is capable of sustaining the success and growth that turned Apple into the world's most valuable company and a beloved brand.

Cook has shown a willingness to spend more of Apple's money than Job ever did. Among other things, Cook began paying Apple stockholders a quarterly dividend and has progressively committed more money to buying back the company's shares.

Apple's pursuit of Beats Electronics is the latest indication that the company is having trouble generating growth on its own. Apple already sells Beats Electronics gear in its stores, giving the company insights into how much the trendy headphones and other audio equipment appeal to its customers.

The negotiations also are taking place as the music market increasingly tilts toward streaming and away from the downloads that once drove the success of Apple's digital music store, iTunes.

U.S. revenue from downloads — which iTunes dominates — dropped 1 percent to $2.8 billion in 2013, while streaming music revenue from the likes of Pandora and Spotify soared 39 percent to $1.4 billion, according to the Recording Industry Association of America.

While downloads still command 40 percent of the market, streaming revenue now accounts for 20 percent of total revenue, up from just 3 percent in 2007.

Beats Electronics LLC was founded in Santa Monica, California in 2008 by Dr. Dre and Jimmy Iovine. Its headphones were manufactured by Monster Cable until the two companies parted ways in 2012. The headphones have become a bit of status symbol worn by celebrities as well as audiophiles.

In 2012, Beats bought streaming music service MOG, which it transformed and relaunched as Beats Music earlier this year. The launch was fueled by a landmark partnership with AT&T that allowed up to five family members to pay $15 a month for the service as long as they were AT&T wireless customers. The deal broke the industry mold of charging each person $10 per month.

AP Business Writer Ryan Nakashima in Los Angeles contributed to this story.

Alibaba's rise: Success and setbacks

BEIJING -- Even before Alibaba went online, its founder talked about making the fledgling e-commerce company a global player.

At Alibaba Group's first staff meeting in 1999, a video shot by an employee shows Jack Ma rallying a workforce of 17 of his friends. They met in a cement-floored apartment in Hangzhou, a city southwest of Shanghai, at a time when few Chinese were online. Ma was an English teacher with no training in business or computers.

"Our competitors are not in China but in Silicon Valley," says Ma in the video, which is included in a documentary about the company, "Crocodile in the Yangtze," made by a former Alibaba vice president, Porter Erisman. "We can beat government agencies and big, famous companies because of our innovative spirit."

Such Silicon Valley-style bluster was new to China, but Ma delivered. Over the next 15 years, he helped propel Alibaba through technical and financial challenges and a battle with eBay Inc. to become the world's biggest online bazaar. The company is now planning to list in the U.S. and analysts say its initial public offering this year may raise up to $20 billion.

Last year, 231 million customers spent $248 billion with merchants on Alibaba's platforms, more than Amazon.com Inc. and eBay combined.

Along the way, Alibaba had to develop e-commerce infrastructure its Western counterparts took for granted. Few Chinese used credit cards, so it created Alipay, a payments system that helped online sales win acceptance by allowing wary customers to receive goods before releasing money to sellers. The company worked with shippers to improve their reliability and held trade shows to persuade entrepreneurs to go online.

"Alibaba really created the e-commerce market in China," said Edward Yu, president of research firm Analysys International.

Today, the company's main platforms are its original business-to-business service Alibaba.com, consumer-to-consumer site Taobao and TMall for brands to sell to consumers.

Alibaba has expanded into personal finance, games, video and other services. In March, it was one of 10 companies picked by Beijing to set up China's first privately financed banks since the 1949 communist revolution. It is dipping a toe abroad, with a $215 million investment in March in Tango, a California-based mobile message service, and plans to launch a U.S. e-commerce site.

Alibaba's IPO paperwork says revenue, mostly fees from merchants, rose 57 percent in the final nine months of last year. Alibaba kept more than 43 cents of each dollar as net income.

In a Silicon Valley-style innovation, Alibaba cultivated a hardworking but playful corporate culture that was a novelty in China's state-dominated economy. An annual employee talent show grew into Alifest, a raucous event held in a soccer stadium before an audience of thousands. Ma takes part by singing Chinese pop songs.

"Alibaba allowed people to shape their own destiny instead of working for a state-owned company or the government bureaucracy," said Erisman.

The early years were a roller-coaster of successes and setbacks. In 1999, Alibaba raised $5 million from investors including Goldman Sachs and then $20 million from Japan's Softbank. Plans called for raising more through a stock market offering, but the Internet bubble burst in 2000 and interest in tech shares evaporated.

"We suffered much more than any other Internet company," Ma told the BBC in 2001.

The next year, Alibaba faced its biggest threat when eBay acquired EachNet, a company that had 80 percent of China's small consumer e-commerce market.

Ma fought back by launching consumer site Taobao and Alipay. He promised Taobao would be free for three years, undercutting eBay's fee-based model. In a guerrilla move to offset eBay's bigger advertising budget, Alibaba employees posted thousands of messages on Internet bulletin boards directing users to Taobao.

In 2004, then-CEO Meg Whitman said eBay expected China to be its biggest market in 10 to 15 years. In 2006, eBay gave up and turned over its China operation to a local partner.

Taobao has given tens of thousands of small Chinese entrepreneurs their first foothold in e-commerce, trading used furniture, hand-knitted sweaters and other goods.

In the northwestern city of Urumqi, Jin Junhui started a business on Taobao in 2005 selling dates and raisins for which the region is famous. Sales in 2008 hit 500,000 yuan ($80,000) and doubled the next year.

"Taobao has changed my life," said Jin, 32. "Now I have two employees and more free time to do what I like."

Alibaba's rise has been marked by Ma's emphasis on the company's long-term interests, even when that clashed with shareholders.

That strained ties with Yahoo Inc., which provided much-needed cash when it paid $1 billion for 40 percent of Alibaba in 2005. The relationship soured in squabbles over strategy but Yahoo profited. Alibaba bought back half for $7.1 billion in 2011 and Yahoo stands to make billions more in the IPO.

Alibaba also faced criticism in 2011 when it spun off Alipay but failed to tell Yahoo and other shareholders immediately. Ma said the move was necessary because Beijing would only license an electronic payment service wholly owned by Chinese citizens.

Ma stepped down as CEO in May 2013, but stayed on as executive chairman and also announced an overhaul to make Alibaba more responsive.

The changes come as Alibaba faces a challenge to its dominance amid upheaval in China's Internet market, where users are shifting to going online via smartphone and tablet.

In e-commerce, Alibaba faces competition from Jingdong.com, which has one-tenth of its market share but a strong reputation for service. Jingdong.com received a $215 million investment in March from games portal Tencent Holdings Ltd., which also owns a stake in an operator of logistics centers.

"Two years ago, I think Alibaba was quite successful. It had no competitor," said Yu of Analysys International. "But today things are quite different. Tencent definitely is a formidable power to challenge Alibaba's business."

AP researcher Fu Ting in Shanghai contributed.

Downtown Fort Wayne project getting bigger

FORT WAYNE, Ind. -- The largest development project in downtown Fort Wayne in decades is getting bigger and more expensive.

The Journal Gazette and The News Sentinel report the office, residential, parking and commercial project that initially was expected to have 60,000 square feet at a cost of $71 million will now have 95,000 square at a cost of $98 million.

City officials and private developers announced Thursday they were adding another story for parking to accommodate future growth, expanding from the original 750 parking spaces to 1,200.

"You don't do something halfway," Mayor Tom Henry said. "Fort Wayne deserves the very best."

Ash Brokerage plans a nine-story office tower where the company will move its 200 current employees and add 115 more. The project also includes a 17-story tower of 100 townhomes, apartments and condos planned by Hanning & Bean Enterprises.

Both projects will sit on top of a city-owned parking garage, which will be surrounded by street-level retail and row-house style residences along Webster Street.

The Allen County-Fort Wayne Capital Improvement Board, which previously pledged $6.5 million over 10 years to help pay for the project, will meet Monday to consider the city's request for more $4 million more for the project. Funding also must be approved by the city's Redevelopment Commission and City Council.

Officials say construction is expected to begin soon and be completed by the end of next year.

Akorn plans $440M acquisition of VersaPharm

LAKE FOREST, Ill. -- Akorn Inc. has announced plans to spend $440 million in cash to buy the parent company of fellow generic drugmaker VersaPharm Inc. less than a month after it polished off the acquisition of another pharmaceutical company.

Shares of the Lake Forest, Illinois, company soared Friday morning after detailed its next acquisition.

Akorn said its latest deal will complement the manufacturing platform it gained through its $640 million purchase of Hi-Tech Pharmacal Co. Hi-Tech makes a range of oral treatments as well as ointments and nasal sprays. It specializes in hard-to-make liquid and semi-solid dosage forms.

VersaPharm is a privately held company that develops topical treatments and focuses on niche therapeutic areas like dermatology and hemophilia.

"This acquisition is a highly strategic fit with the recently acquired Hi-Tech platform as well as Akorn's focus on niche dosage forms," CEO Raj Rai said in a statement from the company.

Akorn said it will fund the deal with loans, and fully committed financing has been provided by JPMorgan Chase Bank. The drugmaker expects the acquisition to add as much as $100 million in annual revenue, and it said the deal should close in the third quarter.

Shares of Akorn jumped 4 percent, or 98 cents, to $25.68 in midmorning trading, while the Nasdaq exchange was largely flat.

Corn price falls on record crop forecast

Corn is falling after the government forecast a record crop for this year.

The price of corn fell 9 cents, or 1.7 percent, to $5.08 a bushel on Friday. The grain has climbed 20 percent this year as planting was delayed by unseasonably cool weather and on concern that corn exports from Ukraine would fall due to tensions with Russia.

U.S. farmers are forecast to produce 13.9 billion bushels of corn this season, according to the U.S. Department of Agriculture's forecast. The government is predicting that higher crop yields will offset a reduction in the number of acres of corn that are planted.

Metal prices were mixed.

Gold was little changed, while silver, platinum and palladium edged lower. Copper rose.

In energy trading, the price of oil edged lower.

HKS Inc. to design new hospital in Baton Rouge

BATON ROUGE, La. -- A Dallas architectural firm has been selected to design the planned Our Lady of the Lake Children's Hospital in Baton Rouge.

Hospital CEO Scott Wester announced the selection of HKS Inc. on Thursday.

The Advocate reports (http://bit.ly/1iyaFI7) that the announcement was made at the annual Children's Hospital Fiesta at the home of board Chairman Don Daigle and his wife Gerry.

The architectural plans should be completed by this fall and an announcement regarding the groundbreaking for the hospital is expected to follow shortly after those plans are released.

Detergent pulled in Germany over neo-Nazi code

BERLIN -- Procter & Gamble has apologized for "any false connotations" after stirring anger in Germany for unintentionally placing a neo-Nazi code on promotional packages for its Ariel laundry detergent.

Outraged shoppers had posted pictures online of Ariel powder boxes featuring a white soccer jersey with a large number "88." The number is sensitive because far-right extremists in Germany often use it as a code to skirt a ban on the use of Nazi slogans in public: since "H" is the eighth letter of the alphabet, "88" represents the phrase "Heil Hitler." Similarly, "18" is used to stand for "A.H." or Adolf Hitler.

Procter & Gamble acknowledged Friday that the number was "unintentionally ambiguous."

"We very much regret if there are any false associations and distance ourselves clearly from any far-right ideology," company spokeswoman Gabi Hassig said in a statement. The number "88" was intended to show how many loads of laundry buyers would be able to do with one package.

Haessig said the company has stopped shipping the offending powder, as well as a liquid detergent that was being promoted as "Ariel 18." The number also represented the number of loads that could be done, the company said.

Wis. delegation fights to keep funding for ships

By HENRY C. JACKSON The Associated Press

WASHINGTON -- Members of the Wisconsin congressional delegation are pushing their colleagues to ignore the wishes of President Barack Obama and preserve full funding for a Navy ship built in the state.

And so far, they are succeeding.

At issue is the littoral combat ship, which is built in Marinette, Wisconsin and Mobile, Alabama. Obama has proposed cutting a scheduled order of four littoral combat ships during the 2015 fiscal year to three of the ships. Doing so would mean that one of the cities would lose a ship order for that year.

Both states' delegations have rallied around the ship program, which has faced long term questions. They've pressed their colleagues to include full funding as Congress goes through a months-long appropriations and funding process. This week, the ships cleared an important hurdle, emerging intact from the House Armed Services Committee markup of the 2015 National Defense Authorization Act.

"There are some hurdles yet to go," said Rep. Reid Ribble, R-Wis., who represents Marinette in Congress. "But this is an important step."

The next step will be a full vote on the House floor for the NDAA bill, then consideration by the House Appropriations Committee, likely sometime in early summer.

The effort to preserve funding for the ships in the 2015 budget has shown a bit of bipartisan defiance from Wisconsin's delegation, while also highlighting the importance of the littoral ship program to the state. About 2,000 jobs are directly linked with the program in Marinette with thousands more linked to it in the region. As a result, the program has strong support from members who are normally ideologically opposed.

Last week, members of the delegation sent letters to colleagues on House committees dealing with military spending urging them to ignore Obama's request to fund only three ships in the 2015 fiscal year. The letter said Congress should stick with funding for four ships, as previously planned, and noted that the littoral ships had become more affordable. Signatories included Republicans like Ribble and Rep. Sean Duffy as well as Democrats like Reps. Gwen Moore and Mark Pocan.

"The LCS is the rare military program that has seen costs decrease instead of increase over time," the letter reads, noting that prices are "locked in."

The delegation's push comes after Obama and Defense Secretary Chuck Hagel put the program on notice in March. As Hagel outlined a vision for a more versatile military, he publicly questioned whether the littoral ships, as currently built, can deal with more modern weaponry.

Hagel has proposed cutting 20 of a planned 52 ship orders while the Navy studies what it needs.

The ship contracts that Wisconsin's delegation is currently fighting for were not affected by Hagel's proposal in March. They are part of the 32 ship orders that Hagel has said should go ahead. But Obama's 2015 budget would only fund three of them, creating a situation where one of the two cities that produce the ships could see a reduced workload.

Ribble and others say Navy leadership has remained supportive of the littoral ships. He said that more study by the Navy could also lead to modified ships that minimize the impact of Hagel's proposed cuts.

"I'm going to continue to be supportive of the littoral combat ship as long as the Navy is telling us they want them," Ribble said.

He said the Marinette facility, which is run by Lockheed Martin, would adjust to the Navy's needs and continue to do good work.

"They've spent the money, and now they have a state of the art facility and I will continue to advocate for it," he said.

Panama president-elect promises price controls

PANAMA CITY -- President-elect Juan Carlos Varela prides himself on a successful business career running Panama's biggest liquor company before entering politics. Yet when the conservative politician takes office July 1 he's promising to implement an economic policy from the playbook of the late Venezuelan socialist Hugo Chavez: price controls.

The economy of this Central American country has soared during the past five years and unemployment is at a record low, but frustration with the high cost of living has been building among Panama's 3.4 million people, especially the quarter living in poverty who haven't benefited as much from the boom.

Doing something about rising prices, especially for food, was Varela's No. 1 campaign pledge as he staged a surprising victory in a tight three-man race May 4. All major opinion polls had put him on the losing end.

Hours after his victory, Varela reaffirmed that his first order of business as president will be to sign a decree imposing emergency price controls on 22 basic goods, everything from rice and eggs to cuts of meat.

He said the move will save families $60 a month without costing the government a single penny. Instead he will demand "sacrifices" from wholesalers and retailers he accuses of charging "speculative" prices as Panama imports more than 60 percent of its food.

Not everyone is thrilled, least of all outgoing President Ricardo Martinelli, the billionaire owner of the country's biggest supermarket chain, Super 99. In 2009, Varela was elected vice president on Martinelli's ticket but they split acrimoniously two years later over Martinelli's effort to engineer a constitutional change that would have allowed him to seek re-election.

Inflation in Panama's dollarized economy is running at 4 percent, which is low by Latin American standards but still twice what it was in 2009. More worrisome is the price of the basic food basket, about 50 products that officials say is enough to feed a family of four for a month. Its cost has jumped 25 percent in the last four years to $335, according to government data.

That's a lot in a country where many people earn the minimum wage, which is $475 to $625 a month.

The strain on pocketbooks is felt in Boca la Caja, a one-time coastal village settled by poor migrants from the interior that has been engulfed by luxury skyscrapers during the past decade's real estate boom.

Linette Cortes says the $500 a month she earns as a hotel maid doesn't stretch far. The 45-year-old has to pool her income with other family members to feed the five adults and three grandchildren who live in her zinc-roofed home. Some neighbors have it worse and have been forced to give up lunch, the day's biggest meal, she said.

"We have three supermarkets nearby, including 99, but they're too expensive," Cortes said. "One hundred dollars no longer goes as far as it used to."

On the campaign trail, Varela liked to cite the example of lentils, which he said were being imported entirely from Canada at 26 cents per pound but he had seen sold at supermarkets for four times that amount. After his complaints, prices fell precipitously without affecting supplies, he says.

"You can't be allowed to mark up basic-need items 60, 70 or 80 percent," Varela said in a meeting with foreign journalists two weeks before the vote.

Martinelli hasn't commented on Varela's plan since the election, but during the campaign he said price freezes would lead to shortages of goods like those seen in Venezuela, where controls implemented a decade ago have been gradually expanded to include less-essential items such as auto parts and car tires.

In Panama's case, nobody expects Varela to take the economy down the path of Chavez's 21st century socialism. Rather they see the controls as a populist bone in what is otherwise expected to be a very pro-business administration.

"He's not proposing a structural overhaul of the economy," said Rolando Gordon, an economics professor at the University of Panama.

Still, he said, Varela needs to be careful and make sure price cuts are agreed on through negotiation. Given the small number of players in Panama's food industry, Martinelli included, it wouldn't take much for the plan to backfire, he said.

"If they want to, they can provoke shortages just out of spite," Gordon said.

Associated Press writer Joshua Goodman in Caracas, Venezuela, contributed to this report.

Ford recalls more than 692,000 vehicles

DETROIT -- Ford says it's recalling more than 692,000 vehicles in North America for two safety problems.

The first case covers 692,500 Escape SUVs and C-Max hybrids from the 2013 and 2014 model years.

Ford says a software glitch can stop the side curtain air bags from inflating in some rollover crashes.

The company says it has no reports of crashes or injuries. Dealers will reprogram the air bag control computer at no cost to owners.

The second case covers 692,700 Escapes from 2013 and 2014. Exterior door handles can bind and stop the door from latching properly. This could allow doors to open while in motion.

Dealers will inspect the handles and reposition them if needed. No crashes or injuries have been reported. Most of the Escapes have both problems.

Recalls this week: magnetic boards, bicycles

A line of magnetic boards with the goal of teaching children colors and sorting skills is being recalled because small metal balls pose a choking hazard and contain a potentially dangerous amount of lead. Other products recalled this week include faulty lanterns and bicycles.

Here's a more detailed look:

CHILDREN'S MAGNETIC BOARDS

DETAILS: Excellerations magnetic color sorting boards with cupcake cut-outs that are used to teach color and sorting to young children. The recalled sorting board is made of plywood and is 16 inches wide and 12 inches high and has the Excellerations name and logo on the front in the bottom right corner. A clear plastic cover is attached to the board by rivets and a 4-inch long wand with a magnet in one end is attached to the top of the board by a 13.5-inch plastic cord. The face of the board has one jar-shaped cut-out and six cupcake-shaped cut-outs that are colored red, yellow, blue, green, orange and purple. Beneath the cover are about 60 multi-colored metal balls, each 1 centimeter in diameter. The boards were sold at Discountschoolsupply.com from January 2013 through March 2014.

WHY: The magnet in the wand can detach and the plywood backing can crack and release small metal balls that are sandwiched between the board and a clear plastic cover. These pose choking and serious internal injury risks associated with ingestion of a magnet and metal ball. The surface paint on the metal balls contains levels of lead that exceed the federal lead paint standard.

INCIDENTS: Six reports of the plywood backing cracking and making the small metal balls accessible to children, and two reports of the magnet detaching from the wand. No injuries have been reported.

HOW MANY: About 3,700.

FOR MORE: Call Discount School Supply at 800-338-4430 or visit http://bit.ly/1uLaFOn, and click on "Safety Information" for more information.

BICYCLES

DETAILS: 2014 Cannondale Tandem Bicycles, road 1, road 2 and 29 tandem. The road 1 and 29 tandem bicycles were sold in black with white graphics and the road 2 was sold in white with red and black graphics. "Cannondale" and "T1" or "T2" are printed on the aluminum frame bicycle. The 29 model is a mountain bike with 29-inch wheels and a 29 graphic decal affixed to the frame. They were sold at authorized Cannondale dealers from October 2013 to December 2013.

WHY: The bicycle fork can break and cause the riders to lose control, posing a risk of injury.

INCIDENTS: Cycling Sports Groups has received two reports of loose steerer tubes. No injuries have been reported.

HOW MANY: About 80.

FOR MORE: Call Cycling Sports Group at 800-726-2453 or send email to custserve@cyclingsportsgroup.com.

TRUNKS

DETAILS: The Aman Trunk, which is a wooden storage trunk measuring 38 inches wide by 18 inches high by 18 inches deep. A sticker attached to the bottom of trunk has a UPC bar code numbered 24441018 and one of the following PO numbers: 200450992, 200450994, 200450995, 400450998 or 400450999. They were sold at Cost Plus World Market stores nationwide and online at www.worldmarket.com from August 2013 to November 2013.

WHY: The surface coating paint on the interior metal chains contains excessive levels of lead, a violation of the federal lead paint standard.

INCIDENTS: None reported.

HOW MANY: About 1,150.

FOR MORE: Call Cost Plus World Market at 877-967-5362 or visit www.worldmarket.com and click on "Product Recalls" at the bottom of the page for more information.

LANTERNS

DETAILS: Northstar liquid fuel lanterns with model number 2000B750 and date codes 10 13 or 11 13. The model number is printed on the base of the lantern, under the lighting instructions. The date code is stamped on the underside of the lantern. A Coleman logo sticker is affixed to the front of the lantern base. They were sold at sporting goods stores nationwide and online at coleman.com from November 2013 through February 2014.

WHY: An incorrect gas feed tube was installed on the lantern. When lit, the tube can release too much fuel, posing fire and burn hazards.

INCIDENTS: Two reports of lanterns catching fire when fuel unexpectedly leaked from the bottom of the unit. No injuries have been reported.

HOW MANY: About 95.

FOR MORE: Call The Coleman Co. Inc. at 800-835-3278, send email to consumerservice@coleman.com, or visit www.coleman.com and click on "Important Safety Information" for more information.

US wholesale stockpiles rise 1.1 percent in March

WASHINGTON -- U.S. wholesale businesses increased their stockpiles in March by the largest amount in five months while sales increased at the fastest clip in 10 months.

Wholesale stockpiles rose 1.1 percent in March after a 0.7 percent gain in February, the Commerce Department reported Friday. It was the ninth consecutive monthly gain and the largest increase since a 1.2 percent rise in October.

Sales at the wholesale level were up 1.4 percent, the best showing since a 1.9 percent rise in May 2013.

The sizable gain in sales should encourage businesses to keep restocking their shelves to meet rising demand. That will mean increased orders to factories and rising production which would boost economic growth.

In the January-March quarter, the economy slowed to a barely discernible growth rate of 0.1 percent after growth of 2.6 percent in the October-December quarter. A slowdown in inventory building subtracted 0.6 percentage point from first quarter growth.

But economists expect the drag from a slowdown in inventory building will ease in the second quarter. The big rise in March inventories supports that view, indicating that there was growing momentum headed in the second quarter.

Many analysts are looking for growth to easily top 3 percent in the second quarter with the most optimistic saying the economy may surge to growth above 4 percent, reflecting pent-up demand from consumer spending that was delayed during the harsh winter.

Analysts think that growth will hold above 3 percent in the second half of this year. If that forecast proves accurate, it would mean the country will enjoy the strongest year for the economy since 2005, two years before the Great Recession hit.

Congress reaches deal on bill critical to Ga. port

SAVANNAH, Ga. -- Georgia's port chief and Washington lawmakers said Friday they're confident a $652 million plan to deepen the busy shipping channel to the Port of Savannah will soon clear its last bureaucratic hurdle after 15 years of studies and delays.

Georgia officials have been waiting since October for the House and Senate to reach a compromise on a sweeping water-projects bill expected to eliminate an outdated spending cap on the Savannah harbor expansion. House and Senate negotiators announced a deal Thursday night. The compromise was expected to win easy approval in both chambers before the end of May.

The Obama administration has said a $459 million spending cap placed on the Savannah project in 1999 — which is $193 million below current cost estimates — must be changed before the federal government can sign a final cost-sharing agreement with Georgia officials. That agreement would allow dredging of the Savannah River channel to begin using $266 million in state funding Georgia has already set aside.

"To me it's massively huge that this step looks like it's about to conclude," said Curtis Foltz, executive director of the Georgia Ports Authority. "It's clear from the administration that until this step was accomplished, we were all going to be here sitting on our hands."

Foltz said if the measure meets final approval by Congress and is signed by the president as expected, he's confident construction will start in the coming months.

"We'll literally start seeing sand being moved before the year is out," Foltz said.

Details of the compromise version of the water-projects bill, including whether the language crucial for the Savannah harbor deepening, won't be available until next week. Both the House and Senate passed versions of the bill last year that included the Savannah harbor language.

Sen. Johnny Isakson, R-Ga., said Friday negotiators have assured him the Savannah port language wasn't a contentious issue and he expects to see it in the final compromise bill.

"It would be a total surprise if it wasn't," Isakson said. "I'm confident it's there."

Fellow Georgia Sen. Saxby Chambliss also seemed to have few doubts. He issued a statement saying "this agreement will clear the last hurdle" for the Savannah harbor.

Like other East Coast seaports, Savannah is scrambling to deepen its shipping channel to make room for supersized cargo ships expected to arrive via an expanded Panama Canal as soon as 2015. The plan calls for dredging 5 feet of sand and mud along a 30-mile stretch of the Savannah River linking the port to the Atlantic Ocean.

Gov. Nathan Deal has made the harbor deepening his top economic development priority. He and Georgia's congressional delegation were stunned in March when the White House refused to include construction funding for the federal government's 60-percent share of the project in the president's fiscal 2015 budget request. The Obama administration also balked at approving a cost-sharing agreement that would let Georgia get started with its own money.

Georgia congressmen, tired of waiting on the stalled water-projects bill, insisted they bypassed the need for it with language included in the omnibus spending bill the president signed in January. But the White House said it wouldn't budge without a water-projects bill that dealt with the old Savannah harbor spending cap.

GOP lawmakers were reluctant to trust the White House to let the Savannah project move forward once the president signs the bill. Isakson said, "I want to see the ink dry on the piece of paper."

Rep. Jack Kingston, a Savannah Republican, added: "You never know. This administration can surprise you."

Obama draws criticism over Walmart visit

President Barack Obama came under fire on Friday for his visit to a Walmart in California.

Labor unions and advocacy groups slammed the president for praising Walmart for energy efficiency while failing to address the big box retailer’s low wages and meager benefits.

Obama’s visit “sends a terrible message to workers across America,” said Joe Hansen, international president of the United Food and Commercial Workers International Union, in a statement.

“He is lending credibility to a bad actor when he should be joining the calls for Walmart to change,” Hansen said. “A federal agency—the National Labor Relations Board—is prosecuting Walmart for retaliating against workers who stand up and speak out. Taxpayers are subsidizing Walmart which pays many of its own workers so little that they must rely on food stamps and Medicaid.”

Hansen urged the president to meet with Walmart workers after Friday’s event so they “can tell him firsthand about their struggles.”

Thirty two groups including Global Exchange, Jobs with Justice, Moveon.org, and Rainforest Action Network issued a joint statement to protest the president’s visit as workers and their supporters rallied at the store in Mountain View, Calif.

Among those at the rally was an employee of the store, Pam Ramos, who published an op-ed in Salon this week about her “nightmare” working for Walmart. She said she wished the president would listen to her and other workers who can’t make ends meet because Walmart pays them so little.

Ramos said she can’t pay rent and medical bills on her $400 a week salary and is now homeless.

“I want the president to help us and tell Wal-Mart to pay us enough to cover the bills and take care of our families,” Ramos wrote. “That doesn’t seem like too much to ask from such a profitable company, a company that sets the standard for jobs in this country. And I hope it’s not too much to ask from a president who believes that income inequality is the defining challenge of our time.”

In his speech at the Walmart Friday, Obama commended the store for installing solar panels, swapping traditional light bulbs for LEDs, improving the efficiency of refrigerator units and adding a charging station for electric cars.

“All told, those upgrades created dozens of construction jobs and helped this store save money on its energy bills,” Obama said. “And that’s why I’m here today -- because more and more companies like Walmart are realizing that wasting less energy isn’t just good for the planet, it’s good for business. It’s good for the bottom line.”

Obama’s has become cozier with Walmart since becoming president. Last year, he touted the company for hiring veterans, and in 2011 First Lady Michelle Obama worked with Walmart to sell healthier foods as part of her Let’s Move campaign.

But when Obama was a senator in 2007, he told an AFL-CIO town hall forum that he wouldn’t shop there, according to the Chicago Sun-Times.

“As profitable as they are, there's no reason they can't afford to pay” higher wages, Obama said at the time.

About 200 people attended Obama’s speech on Friday, including Walmart employees.

The president praised Walmart for having the most installed on-site solar capacity of any company in America, and for the retailer’s plans to double that capacity, an effort he said could save $1 billion a year.

He did not mention his administration’s campaign to raise the minimum wage, a policy item he promoted heavily just last week.

A White House spokesman was dismissive when asked whether the president’s promotion of Walmart for its energy efforts clashed with his pay equity message.

“I didn’t hear anything of a mixed message today,” said the spokesman, Eric Schultz. “Climate change is real and it’s affecting every region of the country. The president's commitment to raising the minimum wage is well known and we've led by example, and we want Congress to finish the job."

He wouldn’t say if Obama had talked to any Walmart executives about minimum wage.

US job openings slip in March after strong gain

By CHRISTOPHER S. RUGABER The Associated Press

WASHINGTON -- U.S. employers advertised slightly fewer jobs and slowed hiring a bit in March, though the declines came after healthy gains the previous month. The figures suggest the job market is improving in fits and starts.

The Labor Department says employers posted 4 million jobs in March, 2.7 percent fewer than the previous month. But February's total was the highest since January 2008, when the Great Recession was just beginning.

There are about 2.6 unemployed Americans for each open job, the report shows. That average has slowly been approaching the 2 to 1 ratio that is typical of healthier economies.

Total hiring dipped 1.6 percent to 4.63 million. That's 7.5 percent higher than 12 months earlier, but still below the 5 million monthly hires typical of a strong job market.

USDA: US corn yields to offset lesser acreage

ST. LOUIS -- U.S. corn growers may surpass last year's record production despite lesser acreage devoted to the grain, but corn prices later in the year could edge lower, a federal report forecast Friday well ahead of an unpredictable summer.

The U.S. Department of Agriculture's first World Agricultural Supply and Demand Estimates report of the year envisions the nation's farmers producing 13.9 billion bushels of corn this year, up slightly from last year's record.

Higher yields were expected to offset the lesser acreage devoted to corn, according to the closely watched report, which estimated farmers would harvest 165.3 bushels of corn per acre, up 6.5 bushels from the previous year. Corn acreage is expected to be 91.7 million acres, down from 95.4 million acres.

But the season-average price for corn was forecast to be lower at a range of $3.85 and $4.55 per bushel, down from $4.50 to $4.80 a year earlier.

Globally, the USDA anticipates 2014-15 corn production of 979.1 million tons, unchanged from the previous period.

U.S. soybean production also is expected to be high, increasing by 346 million bushels to reach a record 3.64 billion bushels. A big part of the reason: The USDA expects farmers will plant 81.5 million acres of the crop, 5 million acres more than last year.

Soybean yields per acre are forecast to be 45.2 bushels, up roughly 2 bushels from a year ago, while the per-bushel price into 2015 could sink to $9.75 and $11.75 per bushel, down from $13.10 the previous year.

The report is the USDA's best guess of agricultural expectations, based on assumptions that this summer's weather will be normal across the Corn Belt. But weather events in coming months still could dramatically influence actual crop production, as illustrated in 2012 when months of summer drought withered U.S. corn and soybean fields, pushing prices to record levels.

"Farmers right now are in the process of planting, and there's nothing produced yet," said Dennis Conley, an agricultural economist at the University of Nebraska's Institute of Agriculture and Natural Resources.

Growers across the nation's Corn Belt are hitting their stride now in planting their latest crop, making up for time lost to a stubbornly cold, wet advent of spring in much of the region. By this week, for example, corn planting had rebounded in Missouri and Illinois to a pace ahead of the five-year average.

The USDA said cold spells last month caused further declines in the condition of winter wheat. The department now expects that crop's production this year to be 1.40 billion bushels, down 9 percent from last year. Yields were forecast to fall by 4.3 bushels per acre, to 43.1.

Free ridesharing deal continuing in Omaha, Lincoln

LINCOLN, Neb. -- The ridesharing company Lyft says it will continue offering free rides in Omaha and Lincoln.

Last month the Nebraska Public Service Commission issued letters to Lyft and its competitor Uber that they'd need the commission's permission to offer services in Nebraska. The two San Francisco companies use smartphone applications to link motorists and people who would pay for rides.

Lyft avoided immediate commission action by offering free rides as part of its introductory offer in the state. Lyft spokeswoman Paige Thelen says Lyft hasn't yet set a date for ending the offer, which was scheduled to end Thursday.

House votes to make research tax credit permanent

WASHINGTON -- The House voted Friday to make permanent a tax credit that rewards businesses for investing in research and development, pushing Congress toward an election-year showdown over a series of expired tax breaks that are popular back home but add billions to the budget deficit.

The research tax credit expired at the beginning of the year, along with more than 50 other temporary tax breaks that Congress routinely extends.

House Republicans said Friday's vote was the beginning of a broader effort to add more certainty to the tax code. In the coming weeks, they hope to vote on bills to make more temporary tax breaks permanent, though they have yet to decide on which ones.

"Beyond having the dubious distinction of the highest corporate rate in the world, the United States is also the only country that allows important pieces of its tax code, like the research and development tax credit, to expire on a regular basis," said Rep. Dave Camp, R-Mich., chairman of the tax-writing House Ways and Means Committee. "Businesses cannot grow and invest when the tax code is riddled with instability and uncertainty."

Camp noted that the research credit has been around since 1981 and has been renewed many times with broad bipartisan support. Friday's bill passed by a vote of 274 to 131, with 62 Democrats joining nearly every Republican in support.

Some House Democrats called Friday's vote a corporate giveaway that would add $156 billion to the budget deficit over the next decade. They goaded Republicans for calling themselves fiscal conservatives while adding so much to the nation's long-term debt.

"It's not only fiscally irresponsible, it's also hypocritical," said Rep. Sander Levin of Michigan, the senior Democrat on the Ways and Means Committee.

President Barack Obama supports making the research and development tax credit permanent. But the White House threatened to veto the House bill because it isn't offset by other tax increases. The veto message noted that if all the 50-plus temporary tax breaks were made permanent, it would "add $500 billion or more" to the deficit.

"The administration wants to work with Congress to make progress on measures that strengthen the economy and help middle-class families, including pro-growth business tax reform," the White House said in a statement. "However, making traditional tax extenders permanent without offsets represents the wrong approach."

Almost every year, Congress allows a package of more than 50 temporary tax breaks for businesses and individuals to expire, only to renew most of them in time for taxpayers to claim them on their returns.

The research and development tax credit is among the most popular. A wide variety of industries claim the credit, including manufacturers, aerospace companies, drugmakers and software developers, said Christina Crooks, director of tax policy for the National Association of Manufacturers.

Most of the tax credit goes to help pay the salaries of engineers, scientists, software developers and others who work to develop new and improved products, Crooks said.

The Senate is moving to extend nearly all the temporary tax breaks through 2015, putting off the debate over which ones to make permanent. The Senate could vote its package as early as next week, setting up a showdown with the House that might not get settled until after congressional elections in November.

The Senate Finance Committee passed a bill in April that would extend the tax breaks through 2015, adding about $85 billion to the debt.

Sen. Ron Wyden, D-Ore., chairman of the Finance Committee, said the bill would give lawmakers time to work on a comprehensive plan to overhaul the entire tax code.

To generate support in Congress, lawmakers routinely pair tax breaks that affect millions with more narrow ones that don't.

Among the biggest of the tax breaks allowed to expire at the beginning of the year: an exemption that allows financial companies to shield foreign profits from being taxed by the U.S., and several provisions that allow businesses to write off capital investments more quickly. There is also a generous tax credit for using wind farms and other renewable energy sources to produce electricity.

The biggest tax break for individuals allows people who live in states without an income tax to deduct state and local sales taxes on their federal returns. Another protects struggling homeowners who get their mortgages reduced from paying income taxes on the amount of debt that was forgiven.

Among the more narrow ones: tax breaks for film producers, motorsport race track owners, the makers of electric motorcycles and teachers who buy classroom supplies with their own money.

"What one person thinks is pork and misguided tax policy is someone else's critical economic development program," said Jon Traub, a former Camp aide who is now a managing principal at Deloitte Tax LLP.

US asks for new sentence for Beanie Baby creator

CHICAGO -- Prosecutors say a judge erred by letting the billionaire creator of Beanie Babies off with no prison time for hiding millions from U.S. tax authorities in Swiss banks. They want the U.S. 7th Circuit Court of Appeals in Chicago to order that he be resentenced.

They argue in an appeal filed Friday that the tax evasion H. Ty Warner pleaded guilty to called for a stint behind bars. At his January sentencing, they asked that the 69-year-old be imprisoned for at least a year.

But Judge Charles Kocoras heaped praise on the toymaker for his charitable giving. Kocoras said society was better served by giving Warner two years' probation.

In their 55-page appeal, prosecutors said Warner's light sentence could send a message that there's a different standard for the wealthy.

German exports, imports drop in March

BERLIN -- Germany's trade surplus narrowed in March as a drop in exports from Europe's largest economy outpaced a drop in imports.

The Federal Statistical Office reported Friday that Germany exported goods worth 91.6 billion euros ($127.81 billion) in March 2014, down 1.8 percent from February, according to provisional figures adjusted for seasonal and calendar fluctuations. It was the largest monthly drop since May 2013. Imports dropped 0.9 percent to 76.7 billion euros.

That put the surplus at 14.8 billion euros, down from 15.7 billion in February.

Germany has drawn criticism for relying too much on exports and not importing enough to boost other European economies. However, it barely has a trade surplus with the rest of the 18-nation eurozone, while it has a large surplus with countries outside the European Union.

A glance at 3 resale sites

NEW YORK -- Shoppers are taking advantage of a growing number of web sites that make it easier to sell and buy gently worn clothing and accessories. Here are a few:

PORTERO

NICHE: Focuses on accessories like handbags and jewelry from top-tier luxury brands such as Chanel, Gucci, Hermes and Rolex.

NUMBER OF CUSTOMERS: Hundreds of thousands but company declined to give specific number.

NUMBER OF ITEMS LISTED ON AVERAGE DAY: 5,000 items

SERVICES: Portero.com assists clients in finding coveted pre-owned luxury items.

CONSIGNMENT POLICY: Portero's items are sourced from vetted suppliers to ensure the authenticity of the items for sale. Consignment is handled on a case-by-case basis.

RETURN POLICY ON ITEMS BOUGHT: Accepts returns on all items except those marked final sale. Every product description states the allowed return time period. If there is no deadline stated, the policy is seven days from receipt. Return shipping is at shoppers' cost

THEREALREAL

NICHE: The company offers limited time only sales events of gently worn top tier luxury fashions and accessories. It expanded into art last year. Among the 500 brands it carries are Chanel, Tom Ford, Valentino and Gucci.

NUMBER OF SUBSCRIBERS: 2.4 million

NUMBER OF ITEMS LISTED ON AVERAGE DAY: 1,000

SERVICES: Will pick up customers' items at their homes in 16 cities across the country for free. For $5 per month, customers can get 24-hour advance access to sales and special invitations to monthly promotions.

CONSIGNMENT POLICY: Consignors receive free shipping on accepted items. The RealReal sets the price and may be changed from time to time without notice to the consignor. Customers receive 60 percent of the net selling price, excluding tax and shipping of items, sold totaling $7,499. Once shoppers break the threshold of $7,550 or more, during that year, the rate goes up to 70 percent.

RETURN POLICY FOR ITEMS BOUGHT: To return clothing and shoes, customers must make that request within 14 days of the shipment date and return the item within 21 days of the shipment date. TheRealReal doesn't accept returns purchased during a Final Sale.

THREDUP

NICHE: ThredUP focuses on mainstream fashion and accessories brands like 7 For All Mankind and Banana Republic for women and children. Recently, it has expanded into higher-end names such as Tory Burch and J. Brand. The company also has handbags.

NUMBER OF CUSTOMERS: Over a million.

NUMER OF ITEMS LISTED ON AVERAGE DAY: 250,000

SERVICES: Customers order a bag that comes with a pre-paid, pre-addressed shipping label to ship back to ThredUP for free.

CONSIGNMENT POLICY: Pays consignor up to 80 percent of the resale value. Items that it doesn't accept go to charitable partners or textile recycling companies. Or they can be mailed back for a $12.99 shipping fee. ThredUP gives customers the ability to adjust the recommended price — within the first seven days that the consignment item is listed on the site.

RETURN POLICY ON ITEMS BOUGHT: Customers are charged for return shipping costs except if there's an error on ThredUP.com's part.

Grain mixed, cattle and pork mixed

CHICAGO -- Grain futures were mixed Friday in early trading on the Chicago Board of Trade.

Wheat for July delivery was 5.75 ceny lower at 7.2959 a bushel; July corn was 1.75 cents higher at 5.1725 a bushel; July oats were unchanged at 3.53 a bushel; while July soybeans was 5.50 cents lower at 14.64 a bushel.

Beef and pork mixed on the Chicago Mercantile Exchange.

June live cattle was .22 cents lower at $1.3770 a pound; Aug feeder cattle was .48 cent higher at 1.9075 a pound; June lean hogs gained .70 cents to $1.2085 a pound.

NM governor address southeast NM traffic deaths

CARLSBAD, N.M. -- Gov. Susana Martinez has outlined her commitment to boosting patrols along highways in southeastern New Mexico following a string of traffic fatalities in Eddy County.

The governor's move comes in response to a letter from Carlsbad city officials who voiced concerns about the growing problem.

In the heart of southern New Mexico's oil country, Eddy and Lea counties have been bustling in recent years thanks to the latest oil boom. That has resulted in housing shortages and more traffic on the highways.

Under the plan outlined by the governor, state police will assign an additional officer to Carlsbad in June and they plan to work more closely with local law enforcement.

The Carlsbad Current-Argus reports (http://bit.ly/1oyquDR ) state motor transportation police also plan more commercial vehicle inspections and enforcement.

Netflix raises prices by a $1 for new subscribers

SAN FRANCISCO -- Netflix is raising its Internet video prices by $1 per month for new customers and giving its current U.S. subscribers a two-year break from the higher rates.

The changes mean anyone signing up for Netflix's video subscription service beginning Friday will pay $9 per month for in the U.S. The old price of $8 per month will continue until May 2016 for Netflix's existing 36 million U.S. subscribers.

The price increase, Netflix's first in nearly three years, isn't surprise. The Los Gatos, California-based company disclosed its plans to raise its rates last month without specifying the precise amount.

Netflix Inc. say its needs more money so it can afford to pay for more original programming along the lines of its Emmy award-winning political drama "House of Cards."

By delaying the price increase for current subscribers, Netflix hopes to avoid the backlash that it faced in 2011 when it raised its prices by as much as 60 percent.

The company lost about 800,000 customers within a few months in an exodus that alarmed investors, causing Netflix's stock to plunge by more than 80 percent in a year. Netflix eventually lured back subscribers and revived its customer growth, lifting its stock to record highs earlier this year.

Subscription prices also will be increasing by the equivalent of about $1 month in Netflix's markets outside the U.S. The company ended March with nearly 13 million international customers in more than 40 countries.

US rig count up 1 to 1,855

HOUSTON -- Oilfield services company Baker Hughes Inc. says the number of rigs exploring for oil and natural gas in the U.S. rose by one this week to 1,855.

The Houston firm said in its weekly report Friday that 1,528 rigs were exploring for oil and 323 for gas. Four were listed as miscellaneous. A year ago there were 1,769 active rigs.

Of the major oil- and gas-producing states, Texas gained three rigs, Kansas increased by two and Alaska, Arkansas, California, Colorado and New Mexico each gained one.

Wyoming lost four rigs, Oklahoma lost three, North Dakota lost two and West Virginia lost one.

Louisiana, Ohio, Pennsylvania and Utah were unchanged.

The U.S. rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999.

Panama president-elect promises price controls

PANAMA CITY -- President-elect Juan Carlos Varela prides himself on a successful business career running Panama's biggest liquor company before entering politics. Yet when the conservative politician takes office July 1 he's promising to implement an economic policy from the playbook of the late Venezuelan socialist Hugo Chavez: price controls.

The economy of this Central American country has soared during the past five years and unemployment is at a record low, but frustration with the high cost of living has been building among Panama's 3.4 million people, especially the quarter living in poverty who haven't benefited as much from the boom.

Doing something about rising prices, especially for food, was Varela's No. 1 campaign pledge as he staged a surprising victory in a tight three-man race May 4. All major opinion polls had put him on the losing end.

Hours after his victory, Varela reaffirmed that his first order of business as president will be to sign a decree imposing emergency price controls on 22 basic goods, everything from rice and eggs to cuts of meat.

He said the move will save families $60 a month without costing the government a single penny. Instead he will demand "sacrifices" from wholesalers and retailers he accuses of charging "speculative" prices as Panama imports more than 60 percent of its food.

Not everyone is thrilled, least of all outgoing President Ricardo Martinelli, the billionaire owner of the country's biggest supermarket chain, Super 99. In 2009, Varela was elected vice president on Martinelli's ticket but they split acrimoniously two years later over Martinelli's effort to engineer a constitutional change that would have allowed him to seek re-election.

Inflation in Panama's dollarized economy is running at 4 percent, which is low by Latin American standards but still twice what it was in 2009. More worrisome is the price of the basic food basket, about 50 products that officials say is enough to feed a family of four for a month. Its cost has jumped 25 percent in the last four years to $335, according to government data.

That's a lot in a country where many people earn the minimum wage, which is $475 to $625 a month.

The strain on pocketbooks is felt in Boca la Caja, a one-time coastal village settled by poor migrants from the interior that has been engulfed by luxury skyscrapers during the past decade's real estate boom.

Linette Cortes says the $500 a month she earns as a hotel maid doesn't stretch far. The 45-year-old has to pool her income with other family members to feed the five adults and three grandchildren who live in her zinc-roofed home. Some neighbors have it worse and have been forced to give up lunch, the day's biggest meal, she said.

"We have three supermarkets nearby, including 99, but they're too expensive," Cortes said. "One hundred dollars no longer goes as far as it used to."

On the campaign trail, Varela liked to cite the example of lentils, which he said were being imported entirely from Canada at 26 cents per pound but he had seen sold at supermarkets for four times that amount. After his complaints, prices fell precipitously without affecting supplies, he says.

"You can't be allowed to mark up basic-need items 60, 70 or 80 percent," Varela said in a meeting with foreign journalists two weeks before the vote.

Martinelli hasn't commented on Varela's plan since the election, but during the campaign he said price freezes would lead to shortages of goods like those seen in Venezuela, where controls implemented a decade ago have been gradually expanded to include less-essential items such as auto parts and car tires.

In Panama's case, nobody expects Varela to take the economy down the path of Chavez's 21st century socialism. Rather they see the controls as a populist bone in what is otherwise expected to be a very pro-business administration.

"He's not proposing a structural overhaul of the economy," said Rolando Gordon, an economics professor at the University of Panama.

Still, he said, Varela needs to be careful and make sure price cuts are agreed on through negotiation. Given the small number of players in Panama's food industry, Martinelli included, it wouldn't take much for the plan to backfire, he said.

"If they want to, they can provoke shortages just out of spite," Gordon said.

Associated Press writer Joshua Goodman in Caracas, Venezuela, contributed to this report.

Ford recalls more than 692,000 vehicles

DETROIT -- Ford says it's recalling more than 692,000 vehicles in North America for two safety problems.

The first case covers 692,500 Escape SUVs and C-Max hybrids from the 2013 and 2014 model years.

Ford says a software glitch can stop the side curtain air bags from inflating in some rollover crashes.

The company says it has no reports of crashes or injuries. Dealers will reprogram the air bag control computer at no cost to owners.

The second case covers 692,700 Escapes from 2013 and 2014. Exterior door handles can bind and stop the door from latching properly. This could allow doors to open while in motion.

Dealers will inspect the handles and reposition them if needed. No crashes or injuries have been reported. Most of the Escapes have both problems.

US wholesale stockpiles rise 1.1 percent in March

WASHINGTON -- U.S. wholesale businesses increased their stockpiles in March by the largest amount in five months while sales increased at the fastest clip in 10 months.

Wholesale stockpiles rose 1.1 percent in March after a 0.7 percent gain in February, the Commerce Department reported Friday. It was the ninth consecutive monthly gain and the largest increase since a 1.2 percent rise in October.

Sales at the wholesale level were up 1.4 percent, the best showing since a 1.9 percent rise in May 2013.

The sizable gain in sales should encourage businesses to keep restocking their shelves to meet rising demand. That will mean increased orders to factories and rising production which would boost economic growth.

In the January-March quarter, the economy slowed to a barely discernible growth rate of 0.1 percent after growth of 2.6 percent in the October-December quarter. A slowdown in inventory building subtracted 0.6 percentage point from first quarter growth.

But economists expect the drag from a slowdown in inventory building will ease in the second quarter. The big rise in March inventories supports that view, indicating that there was growing momentum headed in the second quarter.

Many analysts are looking for growth to easily top 3 percent in the second quarter with the most optimistic saying the economy may surge to growth above 4 percent, reflecting pent-up demand from consumer spending that was delayed during the harsh winter.

Analysts think that growth will hold above 3 percent in the second half of this year. If that forecast proves accurate, it would mean the country will enjoy the strongest year for the economy since 2005, two years before the Great Recession hit.

Congress reaches deal on bill critical to Ga. port

SAVANNAH, Ga. -- Georgia's port chief and Washington lawmakers said Friday they're confident a $652 million plan to deepen the busy shipping channel to the Port of Savannah will soon clear its last bureaucratic hurdle after 15 years of studies and delays.

Georgia officials have been waiting since October for the House and Senate to reach a compromise on a sweeping water-projects bill expected to eliminate an outdated spending cap on the Savannah harbor expansion. House and Senate negotiators announced a deal Thursday night. The compromise was expected to win easy approval in both chambers before the end of May.

The Obama administration has said a $459 million spending cap placed on the Savannah project in 1999 — which is $193 million below current cost estimates — must be changed before the federal government can sign a final cost-sharing agreement with Georgia officials. That agreement would allow dredging of the Savannah River channel to begin using $266 million in state funding Georgia has already set aside.

"To me it's massively huge that this step looks like it's about to conclude," said Curtis Foltz, executive director of the Georgia Ports Authority. "It's clear from the administration that until this step was accomplished, we were all going to be here sitting on our hands."

Foltz said if the measure meets final approval by Congress and is signed by the president as expected, he's confident construction will start in the coming months.

"We'll literally start seeing sand being moved before the year is out," Foltz said.

Details of the compromise version of the water-projects bill, including whether the language crucial for the Savannah harbor deepening, won't be available until next week. Both the House and Senate passed versions of the bill last year that included the Savannah harbor language.

Sen. Johnny Isakson, R-Ga., said Friday negotiators have assured him the Savannah port language wasn't a contentious issue and he expects to see it in the final compromise bill.

"It would be a total surprise if it wasn't," Isakson said. "I'm confident it's there."

Fellow Georgia Sen. Saxby Chambliss also seemed to have few doubts. He issued a statement saying "this agreement will clear the last hurdle" for the Savannah harbor.

Like other East Coast seaports, Savannah is scrambling to deepen its shipping channel to make room for supersized cargo ships expected to arrive via an expanded Panama Canal as soon as 2015. The plan calls for dredging 5 feet of sand and mud along a 30-mile stretch of the Savannah River linking the port to the Atlantic Ocean.

Gov. Nathan Deal has made the harbor deepening his top economic development priority. He and Georgia's congressional delegation were stunned in March when the White House refused to include construction funding for the federal government's 60-percent share of the project in the president's fiscal 2015 budget request. The Obama administration also balked at approving a cost-sharing agreement that would let Georgia get started with its own money.

Georgia congressmen, tired of waiting on the stalled water-projects bill, insisted they bypassed the need for it with language included in the omnibus spending bill the president signed in January. But the White House said it wouldn't budge without a water-projects bill that dealt with the old Savannah harbor spending cap.

GOP lawmakers were reluctant to trust the White House to let the Savannah project move forward once the president signs the bill. Isakson said, "I want to see the ink dry on the piece of paper."

Rep. Jack Kingston, a Savannah Republican, added: "You never know. This administration can surprise you."

Finnish finance minister to quit after party vote

HELSINKI -- Finland's finance minister, Jutta Urpilainen, says she will stand down after her party ousted her as leader.

At a party conference of her Social Democrats, members voted narrowly Friday for Antti Rinne, a leader of a union that represents clerical workers, to replace Urpilainen as chairman.

It was not immediately clear when the 38-year-old Urpilainen will quit.

Partly because she pursued big budget cuts, Urpilainen has been blamed for the declining popularity of the Social Democrats, which is the second largest party in the five-party coalition government.

The 51-year-old Rinne has been president of one of Finland's largest unions since 2011.

Rinne has pledged to cooperate with the other members of the coalition government if he is given the post of finance minister.

Appeals court upholds stronger soot standard

WASHINGTON -- A federal appeals court on Friday rejected an industry challenge to stronger health standards for soot.

The U.S. Court of Appeals for the District of Columbia Circuit says the Clean Air Act gives the Environmental Protection Agency substantial discretion in setting air quality standards.

The revisions followed a determination by the EPA that existing standards for fine particulate matter did not sufficiently protect public health. Fine particles can lodge deeply into lungs and cause serious health problems.

The appeals court ruled 3-0 that the industry simply had not identified any way in which the EPA acted unreasonably. The court said the EPA offered reasoned explanations for how it approached and weighed the evidence

The National Association of Manufacturers argued that the EPA's revision to the standard was unreasonable.

The ruling is the second recent victory for the EPA.

Last month, the Supreme Court backed federally imposed limits on smokestack emissions that cross state lines and burden downwind areas with bad air from power plants they can't control.

Environmental groups praised Friday's ruling.

Nick Morales, lead counsel on the case for Earthjustice, said the court ruling will save tens of thousands of lives and more than a billion dollars in health related costs every year. Earthjustice intervened in support of the EPA.

"The national air quality standards for particulate pollution that were affirmed by the court today provide a bedrock scientific foundation to ensure healthier, longer lives for our families," said Environmental Defense Fund attorney Peter Zalzal.