Monday, 23 June 2014

Home sales edge up, signs of stress remain

McClatchy Newspapers



Existing home sales rose modestly in May, the National Association of Realtors reported Monday, a welcome improvement but one marred by continued signs of stress in the housing sector.


Powered by single-family homes, existing-home sales rose by annualized rate of 4.9 percent last month to 4.89 million, up from 4.66 million in April, the Realtors’ group said.


“Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” said Lawrence Yun, chief economist for the group. “Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates.”


Despite the improvement, existing-home sales were still 5 percent below May 2013 levels.


And there was another bit of sobering news in Monday’s numbers.


“The share of cash-only purchases held firm at 32 percent, despite a drop in investors’ share of purchases, signaling that refinancing remains a major hurdle for many families,” observed Stephanie Karol, a U.S. economist for forecaster IHS Global Insight. “The share of first-time buyers was the primary cause for concern in this report: it fell 2 percentage points in May to 27 percent. The existing home sales market can only retain its strength for so long if move-up buyers cannot find a first-time buyer to purchase their starter homes.”


Offsetting that grim data point, sales of distress homes_ foreclosures and short sales in which banks take some loss on a mortgage_ accounted for about 11 percent of May sales. That’s down from 18 percent a year earlier. Foreclosures sold for an average discount of about 18 percent below market value last month, the Realtors’ group reported.



IRS Head Says No Obstruction Of Congress In Probe


The head of the IRS brushed aside accusations Monday that the agency has obstructed investigations into the targeting of Tea Party and other political groups, even as Republican lawmakers questioned his credibility.


Commissioner John Koskinen was appearing at a rare evening hearing on Capitol Hill to answer questions about lost emails by a key figure in the probe. On Tuesday, the committee will hear from a White House official who once worked at the IRS.


"I know tonight will be difficult, and it deserves to be difficult for both sides," said Rep. Darrell Issa, R-Calif., chairman of the House Oversight Committee. "We have a problem with you, and you have a problem with maintaining your credibility."


Issa accused Koskinen of misleading the Oversight Committee in the spring, when he promised to turn over Lois Lerner's emails. Since then, the IRS has disclosed that Lerner's computer crashed in 2011, losing an unknown number of those emails.


Koskinen said he first learned there was a problem with Lerner's computer in February, but didn't learn that emails were lost until April. The IRS notified Congress June 13.


Lerner is the former head of the division that processes applications for tax-exempt status. The Oversight Committee is investigating the handling of applications from Tea Party and other political groups.


"I subpoenaed you here tonight because, frankly, I'm sick and tired of your game-playing in response to congressional oversight," Issa told Koskinen. "You, commissioner, are the president's hand-picked man to restore trust and accountability at the IRS. You testified under oath in March that you would produce all of Lois Lerner's emails subpoenaed by this committee."


"Mr. Commissioner, at a minimum you didn't tell the whole truth that you knew on that day," Issa added.


Koskinen said, "All the emails we have will be provided. I did not say I would provide you emails that disappeared. If you have a magical way for me to do that I'd be happy to know about it."


He added, "I never said I would provide you emails we didn't have."


Koskinen said congressional investigators were informed months ago that Lerner had computer problems back in 2011. Koskinen said emails provided to the committee last fall showed that Lerner's computer had crashed.


The emails indicate that Lerner had lost some data, though they don't explicitly say that Lerner's emails were lost. They were provided to congressional investigators as part of the Tea Party investigation.


"So it should be clear that no one has been keeping this information from Congress," Koskinen said.


In 2011, the IRS had a policy of backing up emails on computer tapes, but the tapes were recycled every six months, Koskinen said. He said Lerner's hard drive was recycled and presumably destroyed.


The IRS inspector general is investigating the lost emails, Koskinen said.


"It is not unusual for computers anywhere to fail, especially at the IRS in light of the aged equipment IRS employees often have to use in light of the continual cuts in its budget these past four years," Koskinen said. "Since Jan. 1 of this year, for example, over 2,000 employees have suffered hard drive crashes."


The IRS was able to generate 24,000 Lerner emails from the 2009 to 2011 period because she had copied in other IRS employees. Overall, the IRS said it is producing a total of 67,000 emails to and from Lerner, covering the period from 2009 to 2013


Lerner, who is now retired from the IRS, has refused to testify at two Oversight Committee hearings, invoking her constitutional right against self-incrimination.


Congressional investigators have shown that IRS officials in Washington were closely involved in handling Tea Party applications, many of which languished for more than a year without action. But so far, they have not publicly produced evidence that anyone outside the agency directed the targeting or knew about it.


If anyone outside the agency was involved, investigators were hoping for clues in Lerner's emails. The White House says it has found no emails between anyone in the executive office of the president and Lerner.


"Republicans have been trying desperately — and unsuccessfully — for more than a year to link this scandal to the White House," said Rep. Elijah Cummings of Maryland, the top Democrat on the Oversight Committee. "Rather than continuing on this path, I sincerely hope we will turn to constructive legislation with concrete solutions to help federal agencies run more effectively and efficiently."


Koskinen said there was no evidence that Lerner intentional destroyed the emails. To the contrary, the IRS went to great lengths trying to retrieve lost documents on Lerner's computer, even sending it to the agency's forensic lab, he said.


The Oversight Committee is holding a second hearing on the lost emails Tuesday, which sparked a back-and-forth with the White House. Issa invited an attorney in the White House counsel's office to testify, but the White House balked, saying her appearance wasn't necessary.


Issa responded Monday evening by issuing a subpoena for Jennifer O'Connor, who worked at the IRS from May to November 2013, helping the agency gather documents related to congressional investigations, Issa said. O'Connor has since moved to the White House counsel's office.


Issa said he wants to ask O'Connor about Lerner's lost emails. Late Monday, the White House said O'Connor would testify.



Oil falls as fear fades over Iraq conflict


The price of oil fell Tuesday as fears receded that the insurgency roiling Iraq would affect its oil production and exports.


Islamic militants have been steadily expanding their grip on the country's north, where they control a broad swath of territory. But the bulk of the country's production and export operations are in the south, which have so far been spared in this month's advance by the al-Qaeda inspired group. Iraq's daily oil production hit 3.5 million barrels this year, up from nearly 2.4 million a day in 2009.


Benchmark U.S. crude for August delivery dropped 46 cents to $105.71 per barrel on the New York Mercantile Exchange. The contract dropped 66 cents to settle at $106.17 per barrel on Monday. Brent crude, used to price international oils, fell 30 cents to $114.82 a barrel in London.


"Brent crude oil fell after hitting technical resistance at overbought levels," said Desmond Chua, market analyst at CMC Markets in Singapore. "This should signal a period of consolidation as the majority of the geopolitical premium has been priced in, unless we see new risk of disruptions to oil supplies in Iraq."


In other energy futures trading on the Nymex:


— Wholesale gasoline slipped 0.5 cents to $3.07 a gallon.


— Natural gas rose 0.7 cent to $4.453 per 1,000 cubic feet.


— Heating oil fell 0.3 cent to $3.038 a gallon.



Grain mixed, livestock mixed


Grain futures were mixed Monday on the Chicago Board of Trade.


Wheat for Sept delivery fell 4.25 cents to $5.89 a bushel; Sept corn was 9.25 cents lower at 4.39 a bushel; Dec oats were 1 cent higher at $3.33 a bushel; while Nov soybeans rose 2.25 cents to $14.3375 a bushel.


Beef was higher and pork was lower on the Chicago Mercantile Exchange.


August live cattle rose .60 cent to $1.4692 a pound; August feeder cattle was 1.03s cent higher at $2.0790 a pound; while August lean hogs fell .18 cent to $1.2897 a pound.



Lebanon's Arabic press digest – June 24, 2014


The following are a selection of stories from Lebanese newspapers that may be of interest to Daily Star readers. The Daily Star cannot vouch for the accuracy of these reports.


As-Safir


Second French ‘suicide attacker’ returns to Paris


Security sources told As-Safir that security authorities have succeeded in recent weeks in detaining a French “suicide attacker,” after a tip-off from European agencies, at Beirut airport.


However, Lebanese authorities, in coordination with the French, have deported him to Paris.


The French national, working under orders from Al-Qaeda, had planned to head to Syria via Lebanon to carry out a suicide attack there.


Ad-Diyar


Syrian army decides to crack down on insurgents in Qalamoun, Arsal outskirts


The Syrian army and Hezbollah have made an irreversible decision to crack down on insurgents entrenched between Qalamoun and the outskirts of the Bekaa Valley border town of Arsal.


The Syrian army advanced Monday toward the eastern mountain range along Lebanon’s border with Syria from the towns of Qara and Al-Breij.


The sources said the operation would expand toward Wadi Hmayyed on the edge of Arsal.


An-Nahar


Feltman urges Syria’s Shaaban not to impede Lebanese election


U.N. Undersecretary-General for Political Affairs Jeffrey Feltman has told Syrian President Bashar Assad's adviser Buthaina Shaaban during a meeting in Oslo that Damascus must not impede the presidential election in Lebanon.


Al-Joumhourhia


All parties agreed on mechanism to govern Cabinet work


Ministerial sources told Al-Joumhouria that the various Lebanese political parties had agreed to Prime Minister Tammam Salam’s proposal regarding a mechanism to govern the Cabinet's work.


The mechanism stresses the need for consensus among the 24 Cabinet ministers, according to the sources, who said that adopting such a norm meant the principle of voting had been excluded.



Wounded from nighttime Beirut bombing rise to 15


BEIRUT: The wounded from a midnight suicide bomb explosion outside a café near a Lebanese Army checkpoint in Beirut rose to 15, the Lebanese Red Cross said Tuesday.


It said the wounded, all from the Abu Assaf Café, suffered minor injuries in the attack shortly before middnight in the Beirut neighborhood of Tayyouneh. The café-goers were watching the Brazil vs. Cameroon game as part of World Cup 2014.


Security sources told The Daily Star the wrong-way suicide bomber was driving an old red Mercedes. He blew himself up near an Army checkpoint in Tayyouneh, at one of the main entrances into the capital's southern suburbs.


They said the assailant is believed to be a Syrian man.


The state-run National News Agency said the force of the blast had tossed the suicide bomber against the wall of a fourth floor apartment in a nearby building. Human remains and blood littered the balcony floor.


Military Prosecutor Saqr Saqr ordered security agencies to launch an investigation.


As soon as the explosion was heard, dozens of people flocked to the bombing site prompting the Lebanese Army to fire shots in the air to disperse the crowds and facilitate rescue and evacuation operations.


Eyewitnesses said that the remains of a human body – of a brain namely- were found at the site of the bombing. Some of the remains landed on a balcony on the fourth floor of a nearby building, they added.


The eyewitnesses noted that the bombing caused significant material damages and several cars were wrecked as a result of the explosion.


A suicide bombing at a police checkpoint on the Beirut-Damascus highway last Friday fueled fears of violent spillover from Syria and Iraq. A police officer was killed and 33 people were wounded in the bombing.



IRS head says no obstruction of Congress in probe


The head of the IRS brushed aside accusations Monday that the agency has obstructed investigations into the targeting of tea party and other political groups, even as Republican lawmakers questioned his credibility.


Commissioner John Koskinen was appearing at a rare evening hearing on Capitol Hill to answer questions about lost emails by a key figure in the probe. On Tuesday, the committee will hear from a White House official who once worked at the IRS.


"I know tonight will be difficult, and it deserves to be difficult for both sides," said Rep. Darrell Issa, R-Calif., chairman of the House Oversight Committee. "We have a problem with you, and you have a problem with maintaining your credibility."


Issa accused Koskinen of misleading the Oversight Committee in the spring, when he promised to turn over Lois Lerner's emails. Since then, the IRS has disclosed that Lerner's computer crashed in 2011, losing an unknown number of those emails.


Koskinen said he first learned there was a problem with Lerner's computer in February, but didn't learn that emails were lost until April. The IRS notified Congress June 13.


Lerner is the former head of the division that processes applications for tax-exempt status. The Oversight Committee is investigating the handling of applications from tea party and other political groups.


"I subpoenaed you here tonight because, frankly, I'm sick and tired of your game-playing in response to congressional oversight," Issa told Koskinen. "You, commissioner, are the president's hand-picked man to restore trust and accountability at the IRS. You testified under oath in March that you would produce all of Lois Lerner's emails subpoenaed by this committee."


"Mr. Commissioner, at a minimum you didn't tell the whole truth that you knew on that day," Issa added.


Koskinen said, "All the emails we have will be provided. I did not say I would provide you emails that disappeared. If you have a magical way for me to do that I'd be happy to know about it."


He added, "I never said I would provide you emails we didn't have."


Koskinen said congressional investigators were informed months ago that Lerner had computer problems back in 2011. Koskinen said emails provided to the committee last fall showed that Lerner's computer had crashed.


The emails indicate that Lerner had lost some data, though they don't explicitly say that Lerner's emails were lost. They were provided to congressional investigators as part of the tea party investigation.


"So it should be clear that no one has been keeping this information from Congress," Koskinen said.


In 2011, the IRS had a policy of backing up emails on computer tapes, but the tapes were recycled every six months, Koskinen said. He said Lerner's hard drive was recycled and presumably destroyed.


The IRS inspector general is investigating the lost emails, Koskinen said.


"It is not unusual for computers anywhere to fail, especially at the IRS in light of the aged equipment IRS employees often have to use in light of the continual cuts in its budget these past four years," Koskinen said. "Since Jan. 1 of this year, for example, over 2,000 employees have suffered hard drive crashes."


The IRS was able to generate 24,000 Lerner emails from the 2009 to 2011 period because she had copied in other IRS employees. Overall, the IRS said it is producing a total of 67,000 emails to and from Lerner, covering the period from 2009 to 2013


Lerner, who is now retired from the IRS, has refused to testify at two Oversight Committee hearings, invoking her constitutional right against self-incrimination.


Congressional investigators have shown that IRS officials in Washington were closely involved in handling tea party applications, many of which languished for more than a year without action. But so far, they have not publicly produced evidence that anyone outside the agency directed the targeting or knew about it.


If anyone outside the agency was involved, investigators were hoping for clues in Lerner's emails. The White House says it has found no emails between anyone in the executive office of the president and Lerner.


"Republicans have been trying desperately — and unsuccessfully — for more than a year to link this scandal to the White House," said Rep. Elijah Cummings of Maryland, the top Democrat on the Oversight Committee. "Rather than continuing on this path, I sincerely hope we will turn to constructive legislation with concrete solutions to help federal agencies run more effectively and efficiently."


Koskinen said there was no evidence that Lerner intentional destroyed the emails. To the contrary, the IRS went to great lengths trying to retrieve lost documents on Lerner's computer, even sending it to the agency's forensic lab, he said.


The Oversight Committee is holding a second hearing on the lost emails Tuesday, which sparked a back-and-forth with the White House. Issa invited an attorney in the White House counsel's office to testify, but the White House balked, saying her appearance wasn't necessary.


Issa responded Monday evening by issuing a subpoena for Jennifer O'Connor, who worked at the IRS from May to November 2013, helping the agency gather documents related to congressional investigations, Issa said. O'Connor has since moved to the White House counsel's office.


Issa said he wants to ask O'Connor about Lerner's lost emails. Late Monday, the White House said O'Connor would testify.



US, French bank close to deal on $9 billion fine


The U.S. government and French bank BNP Paribas are close to a settlement over alleged sanctions violations that would require the bank to plead guilty, pay almost $9 billion in penalties and face other sanctions, a person familiar with the matter said Monday.


The person described the deal as imminent, but said it was not exactly clear when it would be publicly announced. The person spoke only on condition of anonymity because no agreement had yet been finalized.


BNP Paribas, SA, France's largest bank, has been under investigation for financial transactions through its New York office for clients in Iran, Sudan and Cuba in violation of U.S. trade sanctions. A report by the Wall Street Journal said the bank intentionally hid $30 billion in such transactions, by far more than in any such case so far.


The French economy minister, meanwhile, urged the U.S. Department of Justice to be "fair and proportionate" when deciding on the potential fine. Arnaud Montebourg, speaking on BFM television Monday, said the U.S. has an unfair advantage in the global "economic war" because of a law allowing prosecution of foreign companies for activities outside American soil.


The French government has warned that a huge financial penalty would have an impact on the whole European economy. Two other French banks are under separate investigations for similar activities, and the resulting fines could have repercussions on other companies that do business with those countries as well as the United States.


But the White House this month deflected France's appeal to intervene, with President Barack Obama saying he was prohibited by separation of powers from getting involved and that he would read about the case "in the newspapers just like everybody else."


Meanwhile, the bank said this month that a top executive, Chief Operating Officer Georges Chodron de Courcel, would retire in September. His term was to finish in 2016 and the bank did not explain the reason for his departure.


U.S. banking regulators sought the departure of Chodron de Courcel and other executives as part of the investigation.


Shares in BNP were flat in afternoon Paris trading.



Keller reported from Paris.


US regulators tell railroads to report on backlog


A backlog of grain shipments across the Great Plains has been reduced but not eliminated, so U.S. regulators are requiring BNSF and Canadian Pacific railroads to provide weekly updates on their efforts to catch up before harvest.


The U.S. Surface Transportation Board told BNSF and Canadian Pacific to submit plans to address the backlog by this Friday and begin filing weekly updates. The updates are similar to those regulators required on fertilizer shipments this spring after farm groups complained.


The delays in grain shipments have been especially pronounced in northern Plains states, such as North Dakota, South Dakota, Montana and Minnesota. Critics blame increased crude oil and freight shipments for the delays, but the railroads have said a brutally cold winter and rail congestion in Chicago caused the backlog.


Regulators said both railroads have made some progress in reducing their backlogs of grain car orders, but many grain elevators still have little space available, with harvest beginning around Aug. 1 in the northern Plains. The backlog has meant farmers aren't getting paid for their crops.


"The Board remains very concerned about the limited time period until the next harvest, the large quantities of grain yet to be moved, and the railroads' paths toward meeting their respective commitments," regulators said in their order, issued last Friday.


Mark Watne, president of the North Dakota Farmers Union, said Monday that he remains concerned about the railroads' ability to move enough grain to clear storage space for the harvest. Most grain elevators prefer to be nearly empty before harvest, and Watne said a recent survey of North Dakota grain elevators showed most were close to three-quarters full.


"I don't think there's any way they will be ready for harvest," he said.


Watne said some farmers have had to get extensions on operating loans while they want to get their crops to market. If the grain backlog lingers into fall, some farmers will have difficulty selling their crops.


BNSF spokeswoman Amy Casas said Monday the railroad expects to be prepared for this fall's harvest. Fort Worth, Texas-based BNSF has reduced its systemwide backlog of grain shipments from 14,618 carloads in mid-April to 9,175 carloads as of last Friday.


"We have steadily moved increasing volumes of grain and grain products over the last several months, moving more year-to-date in 2014 than the same period in 2013," Casas said in a statement for the railroad owned by Warren Buffett's Berkshire Hathaway Inc.


Canadian Pacific spokesman Ed Greenberg said Monday that officials at his Calgary, Alberta-based railroad were still reviewing the Surface Transportation Board order, but he said Canadian Pacific is working to address congestion in the Midwest and meet customer requirements.


The weekly reports to regulators will be required until BNSF and Canadian Pacific have dealt with the backlogs.



Iraq upheaval threatens oil development plans


The turmoil in Iraq has thrown the OPEC member's ambitious plans to boost oil production into doubt, threatening to crimp its most vital economic lifeline.


Northern oil fields imperiled by the militants' advance have been shut down, and companies have begun evacuating workers elsewhere in the country. Iraq's Kurdish minority has moved to solidify control over the northern oil-rich city of Kirkuk and other disputed areas, weakening Baghdad's claims to the energy riches buried beneath while bolstering the Kurds' aspirations of greater autonomy.


The heart of Iraq's oil industry is in the mainly Shiite south, which so far has been spared this month's advance by militants led by the al-Qaida spin-off group known as the Islamic State of Iraq and the Levant.


The insurgents quickly took over Iraq's second-largest city of Mosul, Saddam Hussein's hometown of Tikrit and smaller communities in the Sunni heartland as government forces melted away. As they disappeared, Kurdish security forces pushed deeper into contested territories abutting their self-ruled northern enclave.


A senior Iraqi oil official said Baghdad has lost at least 400,000 barrels a day because of production cuts at oil fields in Kirkuk and nearby towns. Authorities also have had to shut down the Beiji refinery, which has been the scene of fierce clashes. Authorities have only been able to produce 30,000 to 40,000 barrels a day from Kirkuk fields to feed a small refinery, the official said.


The Beiji refinery and a nearby power plant supply Iraq with a third of its refined fuel and nearly a tenth of its electricity, according to Barclays analysts.


A major export pipeline controlled by Baghdad that traverses restive Sunni-dominated areas of northern Iraq was shut down earlier this year due to terrorist attacks.


So far, the Kurds have not approached Kirkuk's oil fields or tried to pump oil through an independent export pipeline through Turkey that they built late last year, the oil official said.


But their advance has left them "much more well-positioned to retain full control of the contested territories," including Kirkuk, said Ayham Kamel, Middle East and North Africa director at Eurasia Group in London.


"The new reality embodies Kurdish aspirations and withdrawing from all of these territories is close to impossible," Kamel said.


Kirkuk, 180 miles (290 kilometers) north of Baghdad, is home to Arabs, Kurds and Turkmen, who all have competing claims to the area. Kurds have long wanted to incorporate it into their largely autonomous region, but Arabs and Turkmen are opposed.


In the 1970s and 1980s the Arab-dominated government in Baghdad drove hundreds of thousands of Kurds out of Kirkuk and surrounding regions, settling Arabs from the south in their place in an attempt to pacify a region that had seen repeated revolts.


With an eye on statehood, the Kurds appear to be gearing up for a conflict with Baghdad on the issue. The prime minister of the Kurdish region, Nechervan Barzani, recently said there "is no way to go back to pre-Mosul Iraq" and that any political compromise must take into consideration the reality on the ground.


Down south, where Iraq's main oil facilities are concentrated far from militant-held territory, oil companies, including Exxon Mobil and BP, have evacuated foreign employees from some major fields, another senior Iraqi oil official said. The move has not affected the production from the safer southern fields yet, but "it is a worrying sign for us," the official added.


Both oil officials spoke on condition of anonymity as they were not authorized to brief media outlets.


Exxon and BP both declined to comment.


Earlier this year, Angola's Sonangol decided to abandon two small oil fields it won rights to develop in 2009 outside Mosul due to security problems.


And a few days after the latest militants' incursion, Korea's state-run KOGAS delayed the development of a promising gas field in Iraq's western Anbar province, near the border with Syria.


The Kurds have signed dozens of energy deals covering territory they control — contracts Baghdad deems illegal since it believes it has the sole authority to negotiate rights to drill on Iraqi territory.


Encouraged by what was then an improving security situation, Iraq in 2008 started to attract international oil companies to develop its vast untapped oil and gas reserves to bring in sorely needed cash for postwar reconstruction.


The country, which holds the world's fourth largest oil reserves of some 143.1 billion barrels, has since awarded more than a dozen oil and gas deals. Its daily production and exports have jumped to levels not seen since the late 1970s or early 1980s as a result.


Daily production earlier this year hit 3.5 million barrels, up from nearly 2.4 million a day in 2009, with the bulk coming from the south. Exports averaged nearly 2.6 million barrels a day last month.


Iraq hopes to reach 5 million to 6 million barrels per day in 2015, and envisions that figure rising to 9 million to 10 million barrels per day by 2020.


Others aren't so sure. The Paris-based International Energy Agency forecasts production growing to just 4.5 million barrels by the end of the decade, given the infrastructure bottlenecks and instability.


Current events in Iraq — the second-largest OPEC crude exporter — have already had an impact on oil markets.


On Monday, the price of crude oil hovered near a nine-month high, with Brent crude, used to price international oil, having jumped 63 cents to $115.44 a barrel in London, close to last Thursday's $115.71, its highest level since Sept. 9 last year.


Maria van der Hoeven, the IEA's executive director, said last week that "the situation is obviously very fluid on the ground," making it hard to forecast production scenarios.


"Clearly there is significant additional downside risk," she warned.


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Associated Press writer Adam Schreck in Dubai, United Arab Emirates contributed reporting.



US-Portugal game scores viewership goal


The United States' 2-2 World Cup draw with Portugal is almost certainly the most-watched soccer game ever in the U.S., an emphatic confirmation of the sport's rising popularity in a country slower to embrace it than the rest of the world.


The Nielsen company said that Sunday's gripping game was seen by an average of 24.7 million viewers on ESPN and Univision. That matches it with the 24.7 million U.S. viewers who watched the 2010 World Cup final between Spain and the Netherlands.


ESPN said an additional 490,000 people streamed coverage of the game on their mobile devices through the company's app. Streaming numbers for 2010 weren't immediately available, but it's very unlikely they were that high because streaming apps were not as sophisticated then.


Many factors were in place to make it so popular: It was an exciting game, interest in the U.S. team was high because of the first-game victory against Ghana and World Cup viewing in general has been high. The Sunday evening time slot also meant many Americans were available to watch.


"It indicates that a large group in our audience is really following the story of the World Cup, which is really terrific," said Scott Guglielmino, ESPN senior vice president of programming.


Guglielmino said he's always amused to be asked when soccer will arrive as an attraction in the United States. He's not likely to be asked much anymore.


American players sense the support back home, as well as in stadiums in Brazil, and appreciate it. Viewing parties have pulled thousands of people into bars, public parks, movie theaters and other locations since the tournament began.


"When we get back to the hotel and we hear about Grant Park in Chicago having 10,000 fans out to watch the game and friends and family are sending pictures and videos of what's going on, it can't help but push you on because we want to make every person watching back home proud of us and proud to watch our team," said midfielder Michael Bradley.


The game has continued to grow steadily ever since the U.S. hosted the World Cup in 1994. "People know our players, people know what's going on, people get excited to watch the games and to support their team, their country," Bradley said. "I think as players we can't ask for anything more."


Alejandro Bedoya said he checks social media to see the attention the team is getting.


"It's awesome to see this and we are part of this movement I guess that is growing soccer in the States," said Bedoya, a midfielder. "It's really cool and I'm sure everybody feeds off this energy and it's really nice to see."


Through 32 matches, World Cup games averaged 4.3 million viewers on ESPN. That's up 50 percent from the nearly 2.9 million for matches in the 2010 World Cup. Sunday's match was the most-watch event ever on ESPN that did not involve American football.


Interest is also growing fast on the Spanish-language Univision, where soccer has long been the top sport. The 6.5 million people who watched the U.S.-Portugal match represented the biggest audience ever for a U.S match on the network. Overall, Univision said an average of 3.4 million watched the World Cup on the network through the first 32 matches, up from 2.3 million in 2010.


For many people with Latin-American roots used to following their home country's matches on Univision, the United States has become their second-favorite team, said Juan Carlos Ramirez, president of Univision Sports.


Both networks invested in driving up interest in the World Cup, since big ratings translates into big profits. ESPN spent time telecasting qualifying games for the tournament and has benefited from new attention paid to European soccer leagues. Univision started in a 24-hour sports network where soccer is the major topic of conversation.


The players have done their part, too. There have been plenty of well-played games with higher scoring than is often seen in conservatively-played, high-stakes matches, Rodriguez said.


"It's a combination of many good things," he said. "The planets are aligning."


Worldwide, several World Cup games have already qualified as the most-watched sporting events in their country this year. They include the 42.9 million people in Brazil who watched the home team against Croatia, the 34.1 million in Japan who saw Japan play Ivory Coast, and the 26.4 million in Germany who saw the home team beat Portugal, according to FIFA.


The social media site Facebook, through one week, has already seen more people having interactions about the tournament than it had for the Sochi Olympics, Super Bowl and Academy Awards combined.


Twitter hasn't released overall figures on World Cup activity, but said the two games that generated the most activity on its site involved Brazil. The game with Croatia resulted in 12.2 million tweets, and the match with Mexico made for 8.95 million.


The last-minute goal by Portugal Sunday may have disappointed U.S. fans, but not television executives. It means Thursday's U.S. match against Germany, instead of being relatively meaningless, is likely to decide whether the team advances. Because it will air during the daytime, it's not likely to match television ratings for the Portugal game, but ESPN is expecting big numbers for its mobile app.


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AP Sports Writer Ron Blum in Brazil contributed to this story.



David Bauder can be reached at dbauder@ap.org or on Twitter @dbauder. His work can be found at http://bit.ly/1jn2ReL.


Chinese company sets aside 'Transformer' dispute


A Beijing property developer and Paramount Pictures said Monday that they had smoothed out a dispute over the new "Transformer" movie, which would be released in China as scheduled.


The Beijing Pangu Investment Co. Ltd. said the two sides "have gained mutual trust and reached understanding" after friendly negotiations, days after it demanded edits to remove any reference to its property over an alleged contractual default.


"Because a third party created some misunderstanding, we were having some disagreement with Paramount," said Norman Song, general manager of the Pangu 7 Star Hotel. "After several days of intense discussion, we came to an agreement.


Rob Moore, vice president of Paramount, told a news conference that the film would be released in mainland China, as scheduled, on Friday, the official Xinhua News Agency said.


He said a team has been set up to negotiate with Pangu and that the depiction of Pangu in the film is "perfect," according to Xinhua.


Director Michael Bay said at he wanted to "put all this misunderstanding aside." Neither side provided details.


The Beijing company, which owns the commercial complex Pangu Plaza, announced last week that it had filed a lawsuit with allegations that Paramount and two of its Chinese associates failed to fulfill their obligations in a sponsorship deal.


On Saturday, Pangu said an English-version contract as provided by Paramount was remarkably different from a Chinese-version contract Pangu signed with the two associates in terms of costs and the length of time Pangu is seen in the film.


"Transformers: Age of Extinction," the fourth film in the blockbuster franchise, opened last week in Hong Kong and premieres in North America on Friday.



Defibrillators not required in California stores


The California Supreme Court on Monday ruled that large retailers aren't required to have defibrillators on hand to help treat customers and workers who suffer sudden cardiac arrest.


The ruling signals the end of a Los Angeles-area family's wrongful-death lawsuit alleging Target was liable for a customer's sudden death from cardiac arrest because it didn't have one of the devices as part of its first-aid plan.


The state Supreme Court ruled such a requirement was an unfair burden on Target Corp.


But the court said it was best left to the state Legislature to decide if retailers should have the devices on hand to deliver a life-saving jolt of electricity to a stalled heart. Lawmakers are in a better position to determine if retailers should be required to have defibrillators by writing detailed legislation, the court said.


Chief Justice Tani Cantil-Sakauye wrote for the court that "we believe that in this context the Legislature is generally in the best position to examine, evaluate and resolve the public policy considerations relevant to the duty question."


For two decades, an increasing number of public places in the U.S. have been required to have automated external defibrillators on hand, including government buildings, airports and many other public places. In that time, defibrillators have become cheaper to buy and easier to use. All 50 states and the federal government have laws requiring various entities to have the devices in place, beginning with a Florida law passed in 1997.


Oregon is the only state that requires large retailers to have defibrillators, which are widely acknowledged as a powerful lifesaver if used immediately after a cardiac arrest. The American Heart Association says as many as 300,000 Americans suffer cardiac arrest each year and that the quick use of a defibrillator can increase survival rates from 8 percent to 30 percent.


The case before the California Supreme Court arises from a wrongful-death lawsuit the Verdugo family filed in federal court against Target. After a federal judge tossed out the lawsuit, the family appealed to the U.S. 9th Circuit Court of Appeals. The federal appeals court asked the California Supreme Court to determine if large retailers are required under state law to have the devices.


Now that the state high court said Target isn't required, it's expected the lawsuit will be dismissed.



Water bond measure fails in initial Senate vote


Senate Democrats on Monday failed in an initial attempt to secure Republican support for overhauling the $11.1 billion water bond on the November ballot.


Senate President Pro Tem Darrell Steinberg brought the legislation to a vote because he said he wanted to force "an honest public discussion" about how to improve water supply in California, which is in a drought after three relatively dry years.


SB848 by Sen. Lois Wolk, D-Davis, fell short of the required two-thirds majority vote needed to pass, but it's not dead. After it failed 22-9, Wolk made a procedural move that will allow the bill to be reconsidered later in the summer.


The measure also lacked Gov. Jerry Brown's support. Steinberg said the governor prefers a smaller bond.


"The governor is concerned about ongoing debt service and its impact on future budgets," said the governor's spokesman, Jim Evans.


Democrats say voters are likely to reject the existing ballot measure if it remains on the general election ballot because it is perceived as containing too much special interest pork and being too supportive of a contentious tunnel project to divert water from the Northern California delta to farms and residents in the south.


The Legislature passed the current water bond in 2009 but has delayed it from going before voters twice out of fear that it would be defeated.


Steinberg said a bond that is perceived as promoting the tunnels, a project that is a priority of the governor, is likely to be defeated by voters.


The new version put forth by Senate Democrats is slightly smaller at $10.5 billion. Supporters said it takes a neutral position on the tunnels, provides funding to improve the quality of drinking water supplies and maintains the $3 billion in the current bond to increase storage, primarily through building new dams or raising existing ones.


Maintaining money for dams was the top priority of Republican lawmakers, whose support is needed.


"If this is your signature priority, today is your chance," Steinberg said.


Sen. Jim Nielsen, R-Gerber, said he believes voters will support the 2009 water bond that is currently on the ballot, given the water shortages facing many communities.


"I do believe that the voters of California, now having been confronted with this drought, will be sympathetic," he said.


In the Assembly, several water bond overhauls are in the works, all of them less expensive than the Senate plan that came to a vote Monday. Any new version of the water bond will have to pass both houses of the Legislature on a supermajority vote and gain support from minority Republicans.


SB848 allocates $3 billion for safe drinking water projects, such as funding regional water management districts to remove sediment and make seismic retrofits at storage facilities. It would allocate $3.2 billion for wildlife and conservation projects as well as water recycling projects. Another $3 billion would be dedicated to dams and groundwater storage projects, while $1.3 billion would be used for cleaning up and preserving the delta.


Wolk's bill would require any tunnel project to be approved by the Sacramento-San Joaquin Delta Conservancy, which is part of the Delta Stewardship Council created by the Legislature in 2009 to manage the delta's ecosystem and water supplies. Republicans worry the conservancy group could withhold money from projects they favor.


Lawmakers say California's three-year drought makes it more pressing for them to reach agreement on a plan that will include money for more groundwater storage, dams, conservation and habitat restoration.


California is suffering through a string of several relatively dry winters, which have led to a reduced snowpack and groundwater reserves. Brown in January declared a drought emergency, and some communities are rationing water. Farmland is being left fallow, and court rulings have ordered that more water be released from reservoirs to sustain fish species in Northern California's delta.


If SB838 were approved, taxpayers would make annual payments of $683 million for 30 years for a total of cost of $20.5 billion, according to legislative estimates.


Steinberg acknowledged that the revision would have been more likely if Democrats held on to a two-thirds supermajority in the Senate.



Swollen creek not enough to halt food order


A little thing like a flooded creek was not enough to keep an Alaska restaurant owner from delivering Thai ribs and fried rice to stranded customers over the weekend.


Anuson "Knott" Poolsawat, owner of Knott's Take Out in North Pole, forded the swollen waters of Clear Creek to reach two customers stuck along the Richardson Highway, the Fairbanks Daily News-Miner (http://bit.ly/1yFoujf)


Mike Laiti and Brandon Borgens were completing a multi-day drive Saturday night up the Alaska Highway when they called in their order to the restaurant, which was near closing.


As they approached Clear Creek, they learned a sinkhole had developed from heavy rain near the creek. The state Department of Transportation closed the bridge.


Laiti called Poolsawat to cancel their order at the restaurant more than 25 miles away in North Pole.


"I called him and said, 'Hey man, I can't make it,' and he said, 'Not a problem, I'll come cross the waters,'" Laiti said. "He called me and said, 'Should I bring a boat?'"


Poolsawat arrived with takeout boxes containing Thai barbecue ribs and Thai fried rice. Another box held a "dinosaur egg" — a hardboiled egg that's fried and covered in a sweet sesame sauce.


Poolsawat hiked up his shorts and waded through the creek, holding the takeout boxes over his head. The cold water was hip-deep.


Poolsawat had already done them a favor by staying open late, Laiti said. The delivery was beyond expectations.


"He'd help anybody out. He's just a really good positive attitude, just a good guy," said Laiti. "He's definitely a goofball character and the food he makes is great."



Business Highlights


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Ni hao, y'all: US hinterlands woo Chinese firms


PINE HILL, Ala. (AP) — Burdened with Alabama's highest unemployment rate, long abandoned by textile mills and furniture plants, Wilcox County desperately needs jobs.


They're coming, and from a most unlikely place: Henan Province, China, 7,600 miles away.


Henan's Golden Dragon Precise Copper Tube Group opened a plant here last month. It will employ more than 300 in a county known less for job opportunities than for lakes filled with bass, pine forests rich with wild turkey and boar and muddy roads best negotiated in four-wheel-drive trucks.


What's happening in Pine Hill is starting to happen across America.


After decades of siphoning jobs from the United States, China is creating some. Chinese companies invested a record $14 billion in the United States last year, according to the Rhodium Group research firm. Collectively, they employ more than 70,000 Americans, up from virtually none a decade ago.


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Iraq upheaval threatens oil development plans


BAGHDAD (AP) — The turmoil in Iraq has thrown the OPEC member's ambitious plans to boost oil production into doubt, threatening to crimp its most vital economic lifeline.


Northern oil fields imperiled by the militants' advance have been shut down, and companies have begun evacuating workers elsewhere in the country. Iraq's Kurdish minority has moved to solidify control over the northern oil-rich city of Kirkuk and other disputed areas, weakening Baghdad's claims to the energy riches buried beneath while bolstering the Kurds' aspirations of greater autonomy.


The heart of Iraq's oil industry is in the mainly Shiite south, which so far has been spared this month's advance by militants led by the al-Qaida spin-off group known as the Islamic State of Iraq and the Levant.


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US justices rap agency, but uphold warming rules


WASHINGTON (AP) — The U.S. Supreme Court largely left intact Monday the Obama administration's only existing program to limit power plant and factory emissions of the gases blamed for global warming. But a divided court also rebuked environmental regulators for taking too much authority into their own hands without congressional approval.


The justices said in a 5-4 vote along ideological lines that the Environmental Protection Agency cannot apply a permitting provision of the Clean Air Act to new and expanded power plants, refineries and factories solely because they emit greenhouse gases.


The decision underscores the limits of using the Clean Air Act to deal with greenhouse gases and the administration's inability to get climate change legislation through Congress.


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Special master appointed for Argentina debt talks


NEW YORK (AP) — A special master was appointed Monday to preside over negotiations between Argentina representatives and U.S. bondholders aimed at ending a long battle over $1.5 billion in debts.


U.S. District Judge Thomas Griesa in Manhattan appointed Daniel A. Pollack to conduct and preside over the talks. Pollack is a Harvard Law School-trained litigator with decades of experience in financial cases.


The appointment came after a lawyer for Argentina, Carmine Boccuzzi Jr., said in a letter to the judge that Argentina "wants to emerge from the litigation that has burdened both it and the courts."


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Automakers to recall air bags in humid parts of US


DETROIT (AP) — Faulty air bags — which have already led to the recall of millions of cars worldwide — are blamed for a new round of recalls in the U.S.


The National Highway Traffic Safety Administration, the government's auto safety agency, said Monday that BMW, Chrysler, Ford, Honda, Mazda, Nissan and Toyota will recall cars sold in places where hot, humid weather can potentially affect the air bags.


The older-model cars have air bag inflators that can rupture. If that happens, the air bags might not work properly in a crash, and shards from the broken system could fly out and cause injury.


The automakers all have air bag systems made by Takata Corp., a Tokyo-based supplier of seat belts, air bags, steering wheels and other auto parts.


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Stocks slip below records; FMC falls


NEW YORK (AP) — Stocks fell for the first time in seven days, ending a run that had pushed the indexes to all-time highs, as investors assessed corporate news.


Chemical company FMC fell the most in the Standard & Poor's 500 index after cutting its earnings forecast for the second quarter due because its Agricultural Solutions unit performed worse than expected in the period. General Electric and Wisconsin Energy both dropped after announcing acquisitions.


The stock market has climbed steadily in the last two months amid signs that the economy has recovered its momentum after being disrupted by an unusually harsh winter. Stronger growth should translate into higher corporate profits.


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Sales of US existing homes up 4.9 percent in May


WASHINGTON (AP) — Sales of previously owned U.S. homes posted the best monthly gain in nearly three years in May, providing hope that housing is beginning to regain momentum lost over the past year.


The National Association of Realtors reported Monday that sales of existing homes increased 4.9 percent last month to a seasonally adjusted annual rate of 4.89 million homes. The monthly gain was the fastest since August 2011, but even with the increase, sales are still 5 percent below the pace in May 2013.


Sales had been dampened by last year's rise in mortgage rates from historic lows and various other factors including tight supplies and tougher lending standards.


The median price of a home sold in May was $213,400, up 5.1 percent from a year ago.


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White House, business back Export-Import Bank


WASHINGTON (AP) — The White House and an influential pair of business organizations called for renewal of the Export-Import Bank on Monday, one day after newly elected House Majority Leader Kevin McCarthy of California said the agency should be phased out.


The bank's existence is fast emerging as a flashpoint in the internal Republican struggle between the business-backed establishment and tea party groups.


Asked about McCarthy's comments, White House spokesman Josh Earnest said the bank "helps American companies create and support jobs here at home at no cost to taxpayers" and traditionally has enjoyed bipartisan support as a result.


The bank also returned $1 billion to the Treasury in the last budget year.


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Allergan tells shareholders to reject Valeant deal


NEW YORK (AP) — Allergan, the maker of Botox, said Monday that Valeant Pharmaceuticals' hostile takeover bid for the company is "grossly inadequate" and that shareholders should reject it.


Allergan said the $53 billion bid from Valeant undervalues the company and is not in the best interest of Allergan's shareholders.


Valeant, a Canadian drugmaker, first offered to buy Irvine, California-based Allergan Inc. in April, and has increased its original bid of about $45.6 billion several times, only to be rejected. Valeant teamed up with activist investor Bill Ackman's Pershing Square Capital Management for the bid.


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Obama encouraging family-friendly work policies


WASHINGTON (AP) — President Barack Obama said Monday that the United States should join the rest of the industrialized world and offer paid leave for mothers of newborns.


The president is talking about paid maternity in the midst of a midterm election campaign focused on women voters, raising questions about how he would fund such a system. "If France can figure this out, we can figure this out," Obama said.


While some companies offer paid family leave to attract workers, the 1993 Family Medical Leave Act only requires that employers provide unpaid leave for medical and family reasons.


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Wisconsin Energy buying Integrys for $5.8 billion


MILWAUKEE (AP) — Wisconsin Energy Corp. is buying Integrys Energy Group Inc. for about $5.8 billion in cash and stock to form a more diverse Midwest electric and natural gas delivery company.


The combined company will be called WEC Energy Group Inc. and serve more than 4.3 million total gas and electric customers across Wisconsin, Illinois, Michigan and Minnesota.


The transaction will combine Wisconsin Energy's electric and gas utility, We Energies, with Integrys' electric and gas utilities, Wisconsin Public Service, Peoples Gas, North Shore Gas, Minnesota Energy Resources and Michigan Gas Utilities.


WEC Energy will hold a 60 percent stake in American Transmission Co.


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By The Associated Press=


The Dow Jones Industrial average dropped 9.82 points, less than 0.1 percent, to 16,937.26. The Standard & Poor's 500 index fell 0.26 of a point, less than 0.1 percent, to close at 1,962.61. The Nasdaq composite index rose 0.64 of a point to 4,368.68.


Benchmark U.S. crude for August delivery dropped 66 cents to $106.17 per barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 69 cents to $114.12 a barrel in London. Wholesale gasoline slipped 2 cents to $3.11 a gallon. Natural gas dropped 9 cents to $4.45 per 1,000 cubic feet. Heating oil fell 2 cents to $3.03 a gallon.



Clippers' future hangs on judge's decision


A judge has asked lawyers for more legal documents arguing their points before he decides whether to approve the $2 billion sale of the Los Angeles Clippers to former Microsoft CEO Steve Ballmer.


Shelley Sterling is trying to sell the team without the consent of her estranged husband, Donald, after doctors who examined him said he lacks the mental capacity to decide such matters.


The judge said the Sterling Family Trust does not allow the mercurial billionaire to contest medical findings which are sufficient to remove him as a trustee. But he agreed to consider arguments at a hearing June 30 before a scheduled July 7 trial.


Donald Sterling's lawyer acknowledged he is trying to kill the deal because he doesn't want to sell the team.



Vermont prepares efforts to keep 4,000 IBM jobs


The head of the economic development organization in Vermont's largest county made a series of recommendations Monday for the state to help protect the 4,000 jobs at the IBM electronics plant in Essex Junction.


The proposal would encourage IBM, or whatever company could own the facility in the future, to continue to take advantage of the campus and its workforce, said the development official, Frank Cioffi of the Greater Burlington Industrial Corporation, whose organization developed the recommendations.


"Regardless of what name is on the door of the IBM Vermont enterprise, we all must act immediately and convincingly to demonstrate out state's commitment, our region's commitment, to the success and well-being of the IBM enterprise in recognition of its present and future value," Cioffi said during a news conference at his organization's Burlington headquarters.


He laid out a series of proposals that included support for IBM, workforce training programs, a reduction in operating costs for the plant, tax cuts and spending $4.5 million out of the Vermont Enterprise Fund, created by the Vermont Legislature and due to take effect on July 1.


He was joined at the news conference by Pat Moulton, the secretary of Vermont's Agency of Commerce and Community Development.


They were responding to published reports that IBM is considering selling the division that includes the Vermont plant. Armonk, New York-based IBM has not publicly discussed the reports nor did it respond to a request for comment.


Cioffi and Moulton said they had no knowledge of any pending sale of the Essex Junction plant, where microelectronic chips are designed and manufactured.


But the possibility IBM could sell the plant with at least the theoretical loss of the thousands of jobs, which generate in direct and indirect impacts about $1 billion to the Vermont economy, has sent a shiver through Vermont's business community and the administration of Gov. Peter Shumlin.


Moulton said she felt it was unlikely the plant would close and the jobs disappear from one day to the next, but the state would be ready to respond to any eventuality.


"We've faced plant closings in the past. We are ready to respond with appropriate resources for affected people, resources to see how to bring in new companies, help existing employees start their own businesses," Moulton said.


"We are not planning on any of that, frankly," she said. "We're planning on trying to work with the management at both companies, certainly at IBM, to work with whomever they may be talking to to retain what we have here."



U.S. offers help in fight against terror


BEIRUT: The United States offered Monday full support for Lebanon in its fight against terrorism as the country struggles to ward off the threat of violent fallout from Iraq and Syria.


“We stand by your side and offer full support, assistance and partnership to the ISF and Lebanese Army,” U.S. Ambassador to Lebanon David Hale said on his Twitter account.


Hale also renewed his country’s call for a swift election of a successor to former President Michel Sleiman, whose six-year term ended on May 25, in order for international assistance for Lebanon to be effective.


His comments came after a meeting with Prime Minister Tammam Salam at the Grand Serail to discuss security concerns following last week’s suicide bombing at a police checkpoint on the Beirut-Damascus highway that raised fears of a violent spillover from Syria and Iraq. A police officer was killed and 33 people were wounded in the bombing.


Hale said he discussed with Salam “many issues facing our two countries, including our strong support for Lebanon’s security and management of the spillover from the war in Syria.”


“Friday’s bombing – the loss of an ISF officer and the injuries to others – and the various security operations – reinforce America’s commitment to Lebanon’s safety and its security,” Hale said in a statement after meeting Salam.


“A stable Lebanon is more important than ever. Lebanon’s government and security institutions are working hard and effectively to counter terrorism and maintain the country’s stability. We stand by your side and offer our full support and assistance,” he added in the statement released by the U.S. Embassy.


The Lebanese Army and Internal Security Forces have beefed up security measures in Beirut and its suburbs over the weekend to crack down on suspected terrorist groups following the deadly bombing in Dahr al-Baidar on the Beirut-Damascus highway.


The Dahr al-Baidar attack, coupled on the same day with a police raid on two Beirut hotels that led to the detention of terror suspects allegedly linked to a plot to assassinate Speaker Nabih Berri, placed Lebanon on high security alert.


The security concerns came as Lebanese leaders have warned of threats to Lebanon’s stability arising from the military advances in Iraq by the Al-Qaeda-inspired Islamic State of Iraq and Greater Syria (ISIS) during which they seized large swaths of Iraqi territory.


ISIS and other Al-Qaeda-affiliated groups have claimed responsibility for the deadly car bombings and suicide attacks earlier this year and late last year that targeted Beirut’s southern suburbs and the Bekaa region, where Hezbollah enjoys wide support, in response to the party’s role in Syria.


Hale urged the rival Lebanese factions to comply with the Baabda Declaration and implicitly criticized Hezbollah’s military intervention in Syria to aid President Bashar Assad’s forces.


“This is a time to close gaps so that Lebanon’s security and stability can be reinforced,” he said. “Upholding the Baabda Declaration and adopting a true policy of dissociation from the conflict in Syria are essential. The region’s battles must not be fought in Lebanon; but that means Lebanese should not be drawn into the battles being fought by others elsewhere.”


The 2012 Baabda Declaration, signed by rival March 8 and March 14 leaders at Baabda Palace, called for distancing Lebanon from regional and international conflicts, particularly the war in Syria.


As the presidential deadlock this week enters its second month with no solution in sight, the U.S. ambassador urged the feuding parties to accelerate efforts to elect a president.


“A challenge that is for the Lebanese alone is to resolve its election of a Lebanese president. For international assistance to be effective, Lebanon’s friends seek fully functioning partners of governance in the presidency, Parliament, and the Cabinet,” Hale said.


“The decisions are for the Lebanese, but the costs of indecision will continue to be felt by everyone with a stake in Lebanon’s stability and security. We urge intensified effort to elect a president,” he added.


Berri also urged the rival factions to elect a president, saying Lebanese unity was essential to shield Lebanon from the repercussions of regional conflicts.


“ Lebanon has to protect itself,” he said, adding that lawmakers “must elect a president and stop disrupting constitutional institutions.”


Last week, Parliament was unable to meet for the seventh time to elect a president for a lack of quorum, prompting Berri to adjourn the session until July 2. As in previous sessions, lawmakers from MP Michel Aoun’s bloc, Hezbollah’s bloc and their March 8 allies boycotted the session in a bid to pressure March 14 into a deal over a consensus candidate for the presidency.


Berri stressed the need for Lebanese unity in the face of “storms sweeping us and across the region.”


“ Lebanon is one big family,” he said. “The Lebanese people are the primary guarantee for institutions. Their unity, in addition to the resistance and the Army, protected Lebanon during the 2006 Israeli aggression and achieved victory.”


Progressive Socialist Party leader MP Walid Jumblatt also called for a swift election of a president.


“It is now urgent and necessary ... [that] we seek to unify our vision to confront the upcoming dangerous and fast-moving developments, so that we can preserve General Gouraud’s Lebanon before it is too late,” said Jumblatt, in remarks published by the PSP’s online Al-Anbaa newspaper.


Henry Gouraud announced the creation of the Greater Lebanon in 1920, drawing the country’s current borders.


Noting that the region is facing “great changes,” Jumblatt urged the rival factions to adopt a new approach to resolve political differences and speed up the election of a new president.



Midnight suicide bomber jolts Beirut


BEIRUT: A suicide bomber blew up his vehicle outside a cafe near a Lebanese Army checkpoint in Beirut late Monday, wounding 12 people, security sources said.


The attack, shortly before midnight, further frayed the nerves of Lebanese already on edge over the resumption of deadly attacks linked to the civil war in Syria.


The sources said a suicide bomber driving a 1960s red Mercedes blew himself up near an Army checkpoint in Tayyouneh, at one of the main entrances into the capital’s southern suburbs. According to the sources, the car was moving against traffic when it exploded, thus confirming the premise that a suicide bomber carried out the attack.


“The suicide bomber is a suspected Syrian man,” a security source said.


The sources said several people were wounded at a cafe, where many residents gathered to watch the Brazil vs. Cameroon game as part of the World Cup.


The Lebanese Red Cross confirmed that the explosion did not result in deaths but several customers of the Abou Assaf cafe sustained “light wounds.”


As soon as the explosion was heard, dozens of people flocked to the bombing site, prompting the Lebanese Army to fire shots in the air to disperse the crowds and facilitate rescue and evacuation operations.Eyewitnesses said that the remains of a human body – specifically of brain matter – were found at the site of the bombing.


Some of the remains landed on a balcony on the fourth floor of a nearby building, they added.


The eyewitnesses noted that the bombing caused significant material damages and several cars were wrecked as a result of the explosion.


A suicide bombing at a police checkpoint on the Beirut-Damascus highway last Friday fueled fears of violent spillover from Syria and Iraq. A police officer was killed and 33 people were wounded in the bombing that closely missed a senior security official.


Sources had said earlier that forces were hunting for two potential suicide bombers in Beirut as well as a huge bomb-laden truck.



Congressman Rangel Battles For Political Survival



Representative Charles Rangel, a Democrat from New York, speaks during an interview in New York, in June.i i


hide captionRepresentative Charles Rangel, a Democrat from New York, speaks during an interview in New York, in June.



Bloomberg/Bloomberg via Getty Images

Representative Charles Rangel, a Democrat from New York, speaks during an interview in New York, in June.



Representative Charles Rangel, a Democrat from New York, speaks during an interview in New York, in June.


Bloomberg/Bloomberg via Getty Images


Charles Rangel, who has represented an upper Manhattan district that includes Harlem for 44 years, faces off against three opponents in the New York Democratic primary Tuesday. The most serious challenge comes from the Dominican-American, state senator Adriano Espaillat.


Rangel was first elected in 1970, defeating the legendary Adam Clayton Powell Jr. — the first African American elected to Congress from New York.


Rangel has held the seat ever since, rising to power in Washington and at one time serving as head of the powerful Ways and Means Committee in the House of Representatives.


This weekend, at a campaign stop outside a hamburger joint called the Harlem Shake, supporters for Congressman Charlie Rangel filled the sidewalk along Lenox Avenue — a busy street that runs through the heart of central Harlem.


Rangel was once called the "Lion of Lenox Avenue," but now, some think he is too old for another term. Still, in his stump speech at the rally, he focused on his track record of 22 straight election wins.


"If you had a good old horse that kept winning the races, why in the world would you want to bring in a colt that doesn't even know where the track is," Rangel said.


What he failed to mention is that his record also reflects recent ethics violations, which have contributed to his diminished influence.


His odds at the ballot box have not been helped by changes in district borders and demographics. Once a black stronghold, the 13th congressional district is now majority Latino.


Those shifts seem to favor Rangel's challenger Adriano Espaillat — a long time state senator. The 59-year-old is a Dominican American who lost to Rangel two years ago by just 1100 votes.



State Senator Adriano Espaillat greets voters at a subway stop in upper Manhattani i


hide captionState Senator Adriano Espaillat greets voters at a subway stop in upper Manhattan



Brigid Bergin/Brigid Bergin/WNYC

State Senator Adriano Espaillat greets voters at a subway stop in upper Manhattan



State Senator Adriano Espaillat greets voters at a subway stop in upper Manhattan


Brigid Bergin/Brigid Bergin/WNYC


At a rally on Harlem's west side Saturday, Espaillat tells his supporters that Rangel has sold them out.


"He's sided with the fat cats in Wall Street and not with the people of this community," he said into a megaphone. "We're going to vote him out of office."


If he is successful in doing that, Espaillat would make history as the first Dominican-American elected to Congress, a distinction Charlie Rangel says he's doesn't deserve.


"He wants to be the Jackie Robinson of the Dominicans in the Congress which is ambitious," Rangel said in a televised debate earlier in the campaign. "The fact is that Jackie Robinson was a star before he reached the major leagues and he's not a Jackie Robinson."


Espaillat reacted by saying that Rangel should apologize for making a race an issue.


But for much of Rangel's Congressional career — as a leader from the Civil Rights generation — race was the primary political talking point.


The leaders of that generation are more accustomed to confrontation, says Vincent Hutchings, a political science professor from the University of Michigan. For Rangel, that meant naming and helping found the Congressional Black Caucus.


Rangel's not giving up his turf without a fight. He's armed with backers such as former President Bill Clinton and Governor Andrew Cuomo.



Rep. Charlie Rangel leaves a campaign event in Harlem in a silver Corvette convertible.i i


hide captionRep. Charlie Rangel leaves a campaign event in Harlem in a silver Corvette convertible.



Brigid Bergin/Brigid Bergin/WNYC

Rep. Charlie Rangel leaves a campaign event in Harlem in a silver Corvette convertible.



Rep. Charlie Rangel leaves a campaign event in Harlem in a silver Corvette convertible.


Brigid Bergin/Brigid Bergin/WNYC


Espaillat, on the other hand, enjoys strong support from unions and some top local officials. He is working hard to convince voters that he's the future.


"This is the motorcade to victory," he told supporters at a weekend rally.


In another part of the district, Rangel climbed into a silver corvette convertible after the Saturday rally, riding high on the back seat — looking less like a relic and more like a homecoming king.



City tells app to stop auctions of parking spaces


San Francisco City Attorney Dennis Herrera has issued a cease-and-desist demand to a mobile app called Monkey Parking, which allows people to auction off public parking spaces that they're using to other nearby drivers.


Herrera issued a letter to Paolo Dobrowolny, the CEO of the Rome, Italy-based tech startup on Monday. The letter also asks tech giant Apple to immediately remove the application from its app store. The startup began operating in San Francisco in April.


Herera cites a provision in San Francisco's police code that prohibits people and companies from buying, selling or leasing public on-street parking.


The city attorney is giving the company until July 11 to shut down its operations in San Francisco or possibly face a lawsuit under California's Unfair Competition Law.


In an email, Dobrowolny says he is talking with his legal staff and didn't immediately have a comment.



Irvin: Focus on Sterling comments misses point


Former Dallas Cowboys star Michael Irvin says some people in America share the same views as ousted Clippers owner Donald Sterling. He says focusing only on Sterling misses the progress blacks have made.


Irvin spoke Monday on a panel with NBA Hall of Famer Kareem Abdul-Jabbar at the U.S. Conference of Mayors' annual meeting in Dallas.


Irvin warned against making "absolutes out of things," saying he empathized with Dallas Mavericks owner Mark Cuban's discussion of his own prejudices — comments that created controversy on their own.


Abdul-Jabbar said sports were still a powerful way to bring different races together, citing championship parades in Los Angeles and Jackie Robinson's integration of the major leagues.


Sacramento mayor and former NBA point guard Kevin Johnson is president of the conference.



5 Things to Know in Florida for June 24


Your daily look at news, upcoming events and the stories that will be talked about today.


CHARLIE CRIST POSTPONES VISIT TO CUBA


Democratic candidate for governor Charlie Crist is postponing his visit to Cuba. Crist said earlier this year that the United States should scrap the 52-year-old embargo with the communist-run island. He also said he planned on visiting Cuba on a fact-finding trip.


SOME CITIZENS CUSTOMERS MAY SEE DROP IN RATES


Florida's largest property insurer may be dropping its rates next year. Citizens Property Insurance is considering rate proposals for 2015 that would lower rates by about 3.2 percent for most homeowners. The state-created insurer says the proposal would apply to nearly 70 percent of those with homeowner policies. The Citizens board will vote Wednesday on the proposal. State regulators must approve the plan as well.


GULF POWER-SEA TURTLE


Gulf Power Co. is considering modifying light poles after a loggerhead sea turtle was fatally struck by a vehicle. The nesting turtle died Wednesday on Perdido Key near Pensacola. An initial report from the Florida Fish and Wildlife Conservation Commission suggests the turtle was drawn to a light post.


FLORIDA PAYS NEARLY $250,000 TO SETTLE FIRING CASE


Florida is paying nearly $250,000 to settle a lawsuit with a former state employee who said she was fired for raising questions about the way the state treated people who received unemployment compensation payments. The state calls the lawsuit by Diane Parcell "meritless." But a jury this spring sided with Parcell and her attorneys, concluding the state fired her in retaliation for her actions. The state later agreed to settle the case.


FLORIDA SIBLINGS TO BE RESENTENCED IN GEORGIA BANK ROBBERY


A federal appeals court has ordered a judge to resentence two of three Florida siblings for their roles in the robbery of a south Georgia bank during a cross-country crime spree. The three have also pleaded guilty to charges in Colorado and still face charges in Florida.



AP News in Brief at 5:58 p.m. EDT


Kerry visits Baghdad, urges political reform as insurgents keep up their offensive


BAGHDAD (AP) — America's top diplomat said Monday that leaders of Iraq's factions must keep their commitments to seat a new parliament next week, before a Sunni insurgency sweeps away hopes for a lasting peace.


Meeting with all factions, U.S. Secretary of State John Kerry had a dire message to leaders of Iraq's bitterly divided Shiite, Sunni and Kurdish political coalitions who have lived through more than three decades of dictatorship, sanctions and wars.


"This is a critical moment for Iraq's future," Kerry said at a press conference in Baghdad. "It is a moment of decision for Iraq's leaders and it's a moment of great urgency."


Sunnis frustrated with being cut out of power are increasingly joining the ISIL, a bloody insurgency that has been emboldened by battlefield successes in neighboring Syria's civil war and has made rapid and record gains in Iraq over the past two weeks.


Kerry is seeking to hold the officials to a government transition that the U.S. believes will stave off the threat of a new civil war by giving more power to Iraq's minorities.


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US memo outlining legal basis for drone killings is released; document is heavily redacted


NEW YORK (AP) — The secret U.S. government memo outlining the justification for the use of drones to kill American terror suspects abroad was released by court order Monday, yielding the most detailed, inside look yet at the legal basis for the Obama administration's program of "targeted killings."


The 41-page memo — whose contents had previously been summarized and released piecemeal — was heavily redacted for national security reasons, with several entire pages and other passages whited out.


But it argues among other things that a targeted killing is permissible under a 2001 law passed by Congress soon after 9/11. That law empowered the president to use force against organizations that planned and committed the attacks.


The July 2010 memo was written by a Justice Department official who is now a federal appeals court judge. It was released after a yearlong legal battle by The New York Times and the American Civil Liberties Union.


The memo specifically provided the legal justification for the September 2011 killing in Yemen of Anwar Al-Awlaki, an al-Qaida leader and one-time cleric at a Virginia mosque who had been born in the United States, and another U.S. citizen, Samir Khan, who edited al-Qaida's Internet magazine. An October 2011 strike also killed Abdulrahman al-Awlaki, al-Awlaki's teenage son and also a U.S. citizen.


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Egypt court sentences 3 Al-Jazeera journalists to 7 years each on terrorism-related charges


CAIRO (AP) — An Egyptian court on Monday convicted three Al-Jazeera journalists and sentenced them to seven years in prison on terrorism-related charges after a trial dismissed by rights groups as a politically motivated sham. The verdict brought a landslide of international condemnation and calls for the newly elected president to intervene.


The ruling stunned the defendants and their families, many of whom had hoped their loved ones would be released because of international pressure on the case. U.S. Secretary of State John Kerry, who a day earlier had discussed the case in a meeting with President Abdel-Fattah el-Sissi, denounced the verdict as "chilling and draconian."


The unprecedented trial of journalists on terror charges was tied up in the government's fierce crackdown on Islamists and the Muslim Brotherhood since the ouster last year of Islamist President Mohammed Morsi by el-Sissi, then the army chief. Further fueling accusations that the trial was politically motivated is the Egyptian government's deep enmity with the Gulf nation Qatar, which was a close ally of Morsi and which owns the Al-Jazeera network.


Prosecutors had accused the three — Australian Peter Greste, Canadian-Egyptian Mohamed Fahmy and Egyptian Baher Mohammed — of promoting or belonging to the Brotherhood and of falsifying their coverage of protests by Morsi's supporters to hurt Egypt's security and make it appear the country is sliding into civil war. The government has branded the Brotherhood a terrorist organization.


The journalists, who were detained in December, say they are being prosecuted simply for doing their job and are pawns in the political rivalry. During the 5-month trial, prosecutors presented no evidence backing the charges, at times citing random video footage found with the defendants that even the judge dismissed as irrelevant. They depicted typical activity like editing as a sign of falsification.


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Chemical weapons watchdog: Syria hands over last of declared chemical weapons stockpile


NICOSIA, Cyprus (AP) — Syria finished handing over to Western powers Monday the 1,300 tons of chemical weapons it acknowledged possessing, completing a deal reached last fall under threat of U.S. airstrikes.


The most dangerous material will be transferred to an American ship, which will move into international waters and use specialized equipment to destroy the chemicals over the next two months. Other material will be disposed of at toxic waste sites in various countries.


Questions persist over whether Syrian President Bashar Assad is hiding undeclared poison gases or attacking rebels with chlorine — a toxic industrial gas that is not specifically classified as a chemical weapon.


But politicians and activists hailed Monday's milestone as a victory for international diplomacy, and, at the least, a clear reduction in the amount of chemicals available for use in Syria's bloody civil war.


The news came amid extremely high tension across the Middle East, as Israel carried out retaliatory strikes on Syria and a Syrian cabinet member warned that Sunni insurgents in Iraq have been funneling weapons to rebels in Syria.


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Separatists agree to abide by Ukrainian government's cease-fire; presidents trade demands


DONETSK, Ukraine (AP) — Pro-Russian insurgents in eastern Ukraine agreed Monday to respect a cease-fire declared by the Ukrainian president, raising hopes for an end to months of fighting that have killed hundreds and ravaged the country's industrial heartland.


The announcement came as the Russian and U.S. presidents traded demands over the conflict. Russian President Vladimir Putin urged direct talks between the government and the rebels. President Barack Obama warned Putin that Moscow will face additional costs if it does not help ease the crisis.


The insurgents' pledge to respect the cease-fire came on the first day of talks between a former Ukrainian president, the Russian ambassador, European officials and the eastern separatists who have declared independence. While the government side was nominally not represented, ex-President Leonid Kuchma attended the discussions at the request of the sitting president.


The negotiations were launched in line with President Petro Poroshenko's peace plan, which started Friday with a weeklong unilateral cease-fire in the fighting that has killed more than 350 people and forced tens of thousands to flee their homes.


Alexander Borodai, one of the rebel leaders who took part in Monday's talks in Donetsk, said rebels would respect Poroshenko's cease-fire, which lasts through 0700 GMT (2 a.m. EDT) Friday.


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Racial politics churn GOP Senate primary runoff in Miss. as Cochran seeks black support


JACKSON, Miss. (AP) — Race is roiling the Republican Senate runoff in Mississippi, a state with a long history of racially divided politics where the GOP is mostly white and the Democratic Party is mostly black.


National tea party groups say they are working to "ensure a free and fair election" by sending several dozen observers to precincts to watch who votes during Tuesday's GOP contest, concerned about six-term Sen. Thad Cochran's efforts to persuade Mississippi Democrats to cast ballots. Challenger Chris McDaniel and the tea party portray cross-party voting as dangerous and even illegal, though state law allows it.


"Thad Cochran and his establishment handlers are out trolling, begging for Democrats to cross over and vote in the Republican runoff," Tea Party Patriots Citizens Fund chairwoman Jenny Beth Martin said in announcing that her group and two others have hired an attorney to watch Tuesday's primary.


While Cochran rarely mentions race, he readily acknowledges he's seeking support from black and white voters.


"I think it's important for everybody to participate," he says. "Voting rights has been an issue of great importance in Mississippi. People have really contributed a lot of energy and effort to making sure the political process is open to everyone."


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Supreme Court rebukes EPA, but mainly leaves intact program to deal with carbon emissions


WASHINGTON (AP) — The Supreme Court largely left intact Monday the Obama administration's only existing program to limit power plant and factory emissions of the gases blamed for global warming. But a divided court also rebuked environmental regulators for taking too much authority into their own hands without congressional approval.


The justices said in a 5-4 vote along ideological lines that the Environmental Protection Agency cannot apply a permitting provision of the Clean Air Act to new and expanded power plants, refineries and factories solely because they emit greenhouse gases.


The decision underscores the limits of using the Clean Air Act to deal with greenhouse gases and the administration's inability to get climate change legislation through Congress.


"The Supreme Court put EPA on a leash but not in a noose," said Michael Gerrard, director of Columbia University's Center for Climate Change Law.


"It reaffirmed that EPA can regulate greenhouse gases, but it can only go so far in reinterpreting the statute," Gerrard said. "The court invalidated a small corner of a secondary program. The main event — EPA's proposed rules on existing power plants — remains to be fought another day."


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Obama encourages family-friendly work policies amid election year focused on women voters


WASHINGTON (AP) — President Barack Obama said Monday that the United States should join the rest of the industrialized world and offer paid leave for mothers of newborns.


"Many women can't even get a paid day off to give birth — now that's a pretty low bar," Obama said at the White House Summit on Working Families. "That, we should be able to take care of."


The president is talking about paid maternity in the midst of a midterm election campaign focused on women voters, raising questions about how he would fund such a system. "If France can figure this out, we can figure this out," Obama said.


While some companies offer paid family leave to attract workers, the 1993 Family Medical Leave Act only requires that employers provide unpaid leave for medical and family reasons.


Obama praised California, Rhode Island and New Jersey for creating a state benefit. But he has not endorsed legislation that would create a similar national system funded by a payroll tax, and he pledged in his 2008 presidential campaign not to raise taxes on families making under $250,000 a year.


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Report: Prosecutors, police to blame for delays in Sandusky charges, but politics had no role


HARRISBURG, Pa. (AP) — A report released Monday detailing the handling of the Jerry Sandusky child molestation case faults police and prosecutors for long delays in bringing charges but found no evidence that politics affected the investigation into the former Penn State assistant football coach.


The report, commissioned by Attorney General Kathleen Kane and written by former federal prosecutor Geoff Moulton, blamed a three-year lapse in filing charges on communication problems, an expungement of a 1998 complaint about Sandusky and a failure to take certain investigative steps early on.


"The facts show an inexcusable lack of urgency in charging and stopping a serial sexual predator," said Kane, a Democrat who had vowed to conduct a review of the investigation while running for office. "The report documents that more investigative work took place in just one month in 2011 than in all of either 2009 or 2010."


Then-Attorney General Tom Corbett, a Republican, was in the midst of his successful 2010 gubernatorial campaign during the Sandusky investigation.


Moulton said his review "revealed no direct evidence that electoral politics influenced any important decision made in the Sandusky investigation."


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Holidays, lost business in Brazil, other countries during the lazy days of the World Cup


RIO DE JANEIRO (AP) — Instead of commuting to work, Catia Santiago spent her Monday morning on the golden sands of Rio de Janeiro's Copacabana beach, soaking up the sunshine without a pang of guilt, thanks to the World Cup.


Between Carnival celebrations and a generous smattering of Catholic observances, Brazilians enjoy an extensive calendar of public holidays. But this year, workers are seeing even more time off because of the monthlong soccer tournament.


The extra holidays are helping clear commuters from Brazil's perennially clogged roads to make it easier for fans travel to and from the stadiums. While many workers such as the sunbathing Santiago have embraced the measure, critics contend it's detrimental for Brazilian businesses.


Fecomercio, a Sao Paulo-based industry group representing the goods, services, and tourism sectors, forecasts that those businesses may lose up to $13.5 billion due to lost productivity and the need to pay double salaries to people who work government-declared holidays. However, Brazil's Tourism Ministry has said the Cup itself will inject that much money into the nation's economy, offsetting any such losses.


With Rio's City Hall declaring full- or half-day holidays on days with matches at the city's famed Maracana stadium, and many businesses shutting down when Brazil's national team plays, last week there were only two regular work days in this city of 12 million. This week will be much the same.