Tuesday, 24 June 2014

Lebanon's Arabic press digest – June 25, 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.


An-Nahar


Security authorities arrest southern suburbs’ informer


An-Nahar has learned that security agencies have arrested a Syrian man identified only by his family name Raad while he was headed to the Bekaa Valley border town of Arsal to receive money in return for monitoring a number of streets and passing information to his bosses.


During interrogation, Raad confessed that he was paid $300 for each piece of information and that he works with the so-called Abu Muhannad in Majdal Anjar.


Meanwhile, political sources told An-Nahar that Hezbollah had tied the election of Free Patriotic Movement leader Michel Aoun to its attendance of the next voting session.


Al-Akhbar


Approval of 1960 election law in return for Aoun’s election


Visitors of MP Michel Aoun told Al-Akhbar that Aoun was adamant on holding parliamentary elections and that he was seeking to amend the 1960 electoral law.


“But if they insist on the 1960 law, I want them to vow in return that they would elect the winner of the largest Christian bloc as president for Lebanon,” Aoun was quoted as saying.


Meanwhile, a senior official with the Free Patriotic Movement said Maronite Patriarch Beshara Rai was scheming to prevent Aoun from reaching the presidency.


Al-Joumhouria


No communication regarding wage hike: Ghazi Youssef


“There are no political contacts ongoing regarding the salary scale,” MP Ghazi Youssef told Al-Joumhouria.


Youssef stressed that the sticking points were still centered on raising the VAT and amending the electricity tariffs.


Ad-Diyar


Contacts between Lebanese Forces, FPM ongoing


Contacts between the Lebanese Forces and the Free Patriotic Movement have been going on for a while despite the difficulty in reaching an agreement on a third presidential candidate, in addition to Michel Aoun and LF leader Samir Geagea.


Aoun rejects such a solution and insists he is eligible to run for president, a stance Rai conveyed to Geagea during their meeting Tuesday in Bkirki.



AP sources: Christie faces another bridge probe


An 82-year-old steel truss bridge featured in the opening credits of "The Sopranos" and in Orson Welles' 1938 broadcast of "War of the Worlds" is now the second bridge for which Gov. Chris Christie's administration is facing an investigation.


The Manhattan district attorney's office and the Securities and Exchange Commission are investigating whether $1.8 billion in funding to overhaul the decaying Pulaski Skyway and related repairs was misrepresented in bond documents by the Port Authority of New York and New Jersey, a person familiar with the investigation but not authorized to discuss it publicly told The Associated Press. The person spoke on the condition of anonymity.


And a government official with direct knowledge said the Manhattan district attorney's office is investigating.


Besides federal laws and regulations, New York state has its own securities law, called the Martin Act. It allows for criminal charges for making false statements when selling bonds and some other financial instruments; the charges can be felonies. The law also allows authorities to bring civil suits.


The agreement for the bridge project "was analyzed and negotiated by lawyers on all sides" and the bond disclosures were reviewed by a law firm that has served as underwriters' counsel for the Port Authority for 25 years, the Port Authority said in a statement.


A spokeswoman for Manhattan District Attorney Cyrus R. Vance Jr. declined to comment Tuesday. Spokespeople for Christie and the SEC also declined to comment.


The New York Times first reported the investigation.


The Skyway connecting Newark and Jersey City carries more than 70,000 vehicles in and out of Jersey City, Hoboken and Manhattan daily. The inbound lanes of the bridge were closed in April for two years for the project.


The Skyway is owned and operated by New Jersey and offers a direct route to the Holland Tunnel in Jersey City. But the agreement signed in 2011 between the Port Authority and New Jersey's Department of Transportation labeled it an approach to the Lincoln Tunnel, which is several miles away and requires what amounts to a 90-degree turn to the north.


According to published reports, the Port Authority isn't authorized to pay for work on access roads to the Holland Tunnel because the tunnel predates the formation of the Port Authority in 1921. The agency can pay for roads that lead to the Lincoln Tunnel.


The Record of Woodland Park first reported on the Port Authority's mention of the Lincoln Tunnel in the Pulaski documents.


Christie's administration also is the target of state and federal investigations over lane closures at the George Washington Bridge last fall that appear to have been ordered for political payback. Several Port Authority officials have resigned and Christie fired a staffer who was revealed to have ordered the closures in an email.


Christie has denied any advance knowledge of the lane closure scheme. A taxpayer-funded report prepared by a law firm commissioned by Christie absolved the governor of any wrongdoing.



Peltz reported from New York. Associated Press writers Jill Colvin in Trenton and Marcy Gordon in Washington, D.C., contributed to this report.


Houston to get 4th area code


The Houston area is about to get a fourth area code.


A statement from the Public Utility Commission of Texas says 346 will be overlaid on three other area codes for Houston and its closest suburbs in Harris, Fort Bend, Waller, Austin, Montgomery, San Jacinto, Liberty, Chambers, Galveston and Brazoria counties.


Starting July 1, the new area code will be available for telephone numbers assigned to new service. Area codes for existing telephone numbers will remain unchanged, and the 713, 281 and 832 area codes will still be available for new telephone service.



Fancy freebies: Tycoon to treat homeless to lunch


A Chinese tycoon is feeding hundreds of homeless New Yorkers some fancy food — in Central Park.


The lunch for 250 residents of a Manhattan shelter will be served Wednesday at the Boathouse restaurant.


Recycling magnate Chen Guangbiao (gwong-BYOW') is offering them sesame-seed-encrusted tuna, beef filet and berries with creme fraiche. He'll also provide entertainment by singing "We are the World." And he's promised each guest $300.


Chen says he wants to disprove the cliche image of rich Chinese spending money mostly on luxuries.


But his American ambitions surpass philanthropy.


Earlier this year, the 46-year-old businessman wanted to buy The New York Times. Times chairman Arthur Sulzberger, Jr., said the newspaper was not for sale.


To announce the lunch, Chen placed ads in the Times and The Wall Street Journal.



Academics among terror cell arrested in n.Lebanon


TRIPOLI/Lebanon: Lebanese authorities have arrested six members of an alleged terrorist cell, including a university professor and two students, in the northern city of Tripoli, security sources said Wednesday.


The sources told The Daily Star that the cell had been under surveillance.


They said the counterterrorism bureau made the arrests late Tuesday.


The suspects include Wiam Mustafa, a 28-year-old professor at ULF University in the northern province of Koura, as well as Bilal al-Mustafa, 18, a vocational student, and Abdul Rahman al-Sayyed, 23, a Civil Engineering student.


The other suspects were identified as Ahmad Salaheddine, Abdullah Salaheddine and Mohammad Khaled Salaheddine, an employee at the Jounieh power plant.


The sources said authorities were pursuing a seventh remaining suspect, identified as Ahmad Mohammad Mustafa.



Sen. Thad Cochran Beats Back Tea Party Challenge



U.S. Sen. Thad Cochran, R-Miss., greets supporters and volunteers at his Canton, Miss., headquarters on Tuesday.i i


hide captionU.S. Sen. Thad Cochran, R-Miss., greets supporters and volunteers at his Canton, Miss., headquarters on Tuesday.



Rogelio V. Solis/AP

U.S. Sen. Thad Cochran, R-Miss., greets supporters and volunteers at his Canton, Miss., headquarters on Tuesday.



U.S. Sen. Thad Cochran, R-Miss., greets supporters and volunteers at his Canton, Miss., headquarters on Tuesday.


Rogelio V. Solis/AP


Veteran Mississippi Sen. Thad Cochran squeaked by challenger Chris McDaniel Tuesday in a bitterly contested Republican runoff that represented the Tea Party's best remaining chance to take down a longtime incumbent.


With 98 percent of precincts reporting, the Associated Press called it for Cochran, who had 51 percent to McDaniel's 49 percent.


Five other states — Colorado, Maryland, New York, Oklahoma and Utah – held primaries Tuesday and another, South Carolina, had runoff elections, but the marquee race was the Cochran-McDaniel showdown.


McDaniel appeared to have the advantage in the run-up to Tuesday's contest. He narrowly led Cochran in the June 3 primary, was ahead in several post-primary polls and was thought to have momentum against the 76-year-old incumbent.


McDaniel, who hit hard on anti-incumbency themes and drew national Tea Party support, had the backing of a range of grassroots conservative luminaries ranging from Sarah Palin to Rick Santorum to Phyllis Schlafly.


Conservative groups, including FreedomWorks, the Club for Growth and the Senate Conservatives Fund, poured in millions in outside spending on his behalf.


Cochran, meanwhile, had financial backing from groups including the U.S. Chamber of Commerce and the National Rifle Association.


In the runoff, the six-term incumbent managed to draw on a coalition that included African-American Democrats and independents. Under Mississippi law, Democrats who did not vote in the June 3 Democratic primary could vote in the Republican runoff — and they were essential to Cochran's post-primary strategy.


In another closely watched Senate race, GOP Congressman James Lankford won the special Senate primary to succeed GOP incumbent Tom Coburn, who is stepping down at the end of the year. By winning 56 percent to former state House Speaker T.W. Shannon's 36 percent, Lankford won the nomination outright and is expected to cruise to victory in November in the solidly Republican state.


In Maryland, Lt. Gov. Anthony Brown won the Democratic nomination for governor, positioning him as the frontrunner to succeed outgoing Gov. Martin O'Malley in the solidly Democratic state. If Brown wins in November, he would become the nation's 5th African-American governor.


In Tuesday's most closely watched U.S. House race, longtime New York Congressman Charles Rangel led state Sen. Adriano Espaillat, 48 percent to 43 percent, with 96 percent of precincts reporting.



US weighs lawsuits on alleged insurance kickbacks


The government is considering whether to sue banks and other mortgage servicers to recover its losses from alleged insurance kickbacks that may have cost government-controlled mortgage giants Fannie Mae and Freddie Mac hundreds of millions of dollars, The Associated Press has learned.


The Federal Housing Finance Agency, which is responsible for guarding Fannie and Freddie's finances, told its inspector general's office in a letter obtained by the AP that it will consider filing the lawsuits and will make a formal decision over the next year.


Fannie Mae and Freddie Mac, which have been under the FHFA's conservatorship since 2008, lost an estimated $168 million from the fees in 2012 alone, according to the report by the FHFA's inspector general. The FHFA didn't accept the inspector general's estimate of damages, but the agency's official response to the report said it "does not object" to the recommendation that it consider suing.


Banks and other mortgage servicers that might be subject to such lawsuits did not immediately respond to phone calls and email messages seeking comment on the threat of litigation.


Though the FHFA barred banks and other mortgage servicers from collecting payments from insurers on June 1, the agency does not normally discuss prospective litigation and has not previously indicated that it might consider suing over past misbehavior.


Should the FHFA decide in favor of such litigation, the lawsuits could reopen a controversy over how the country's biggest banks profited from what is known as "force-placed insurance," a high-cost version of property insurance that protects the homes of uninsured borrowers. Typically purchased by banks when a borrower falls behind on mortgage and insurance payments, force-placed insurance ballooned into a $1 billion-a-year industry after the 2008 housing bust.


According to a 2012 investigation by New York's Department of Financial Services and a slew of private lawsuits, large banks and insurers colluded to inflate the price of force-placed insurance, splitting the profits. Insurers paid banks for referring business. Struggling homeowners and mortgage investors like Fannie Mae and Freddie Mac bore the cost in the form of higher insurance premiums, often many times the price of normal homeowners insurance.


Since insurance kickbacks are illegal, major banks and insurers allegedly contrived to mask the payments as legitimate business transactions. The FHFA inspector general's report did not name specific institutions. But some banks, including JPMorgan Chase, Wells Fargo and Citigroup, set up insurance agencies to accept supposed commissions from the two dominant force-placed insurers, Assurant and QBE. But as New York and private plaintiff's attorneys separately uncovered, these bank-owned insurance agencies were little more than empty shells. In one example, JPMorgan's own employees stated in court documents that a bank-owned insurance agency did not employ a single insurance agent. In other instances, insurers rewarded banks through generous reinsurance deals or simple, lump-sum multimillion-dollar payments, New York state found.


In the wake of the New York investigation, other state probes and private lawsuits, many of the country's largest mortgage servicers — including JPMorgan, Wells Fargo and Citigroup — renounced commissions in 2012 and 2013.


The FHFA's prospective lawsuits against banks and insurers would not be automatic victories, its inspector general said. But similar class-action lawsuits brought by private attorneys representing homeowners have been successful, indicating the government would be in a strong position if it were to sue. Over the past three years, mortgage servicers and their force-placed insurers have paid out $674 million to settle such cases — preventing a single one from reaching trial. In September of 2013, JPMorgan and Assurant reached the biggest single settlement, a $300 million payout.


According to New York's Department of Financial Services, JPMorgan Chase took in more than $600 million from force-placed reinsurance deals since 2006.



Consumer confidence, new home sales both jump

McClatchy Newspapers



Consumer confidence came in stronger than expected in June, especially about perceptions about job availability, the Conference Board reported Tuesday in its monthly index.


The New York research group’s confidence index is closely followed for signs about the future direction of consumption, a main driver of the U.S. economy. Confidence rose 3 percentage points over May on the index.


“Expectations regarding the short-term outlook for the economy and jobs were moderately more favorable, while income expectations were a bit mixed. Still, the momentum going forward remains quite positive,” said Lynn Franco, the board’s director of economic indicators.


The strong reading exceeded analyst expectations, and they were heartened by a big jump to a six-year high in the number of survey respondents saying jobs were plentiful.


“Consumer confidence in June is higher than at any time since January 2008 on a strong improvement in the assessment of current conditions and a modestly better assessment of the economic outlook,” said economists with RDQ Economics, in a research note. “Consumers’ evaluation of the labor market … is the highest since July 2008.”


Given the strong confidence numbers, especially about labor conditions, RDQ Economics thinks June hiring will top 200,000 new positions for the fifth consecutive month.


In another positive economic data point, new home sales, as reported by home builders, also came in above expectations on Tuesday. New home sales rose by 18.6 percent in May, suggesting the housing sector is bouncing back after a sluggish start in 2014 because of a protracted harsh winter.


Earlier this week, the National Association of Realtors reported a modest 4.9 percent increase in sales of existing homes over April numbers.



New regulatory bills clear NC House committee


A North Carolina House committee Tuesday approved two bills aimed at reducing industry regulation by the state, but also included dozens of provisions on other issues ranging from mug shot websites and tanning beds to mandating insurance coverage for autism.


The bills were parts of a large single bill that members of the same committee balked at last week. Lawmakers from both parties were upset the original 45-page bill was rushed and had several wide-ranging provisions that had nothing to do with regulatory reform.


A key House member on regulatory issues says improvements have been made. Several contentious items in last week's bill were replaced with General Assembly studies on those issues.


"We are closer than we were a week ago," said Rep. Tom Murry, R-Wake, the committee's chairman.


As this year's General Assembly work session winds down soon, the bills will have to move quickly through the full House and be approved by the Senate to head to Gov. Pat McCrory's desk. The Senate has different ideas on what regulatory changes should be made.


Lawmakers have been weighing this year whether websites should be allowed to post mug shots online of crime suspects and charge people to take them down. One of the two bills approved Tuesday now directs two state agencies to study whether the photos should remain public records and report their findings by the end of the year.


A contentious provision that would prevent city residents through petition drives to block rezoning requests was kept in the bill after two amendments to remove or modify it were defeated.


Opponents of the provision said blocking developers from changing a neighborhood allowed people to have security when buying property.


"This is a tool that allows neighbors to have a voice in this debate, it's been important for a number of neighborhoods," said Rep. Pricey Harrison, D-Guilford, pointing to Greensboro communities.


Supporters, mostly Republicans, said blocking rezoning requests through protest petitions allowed individual residents to extort developers.


"It's not democratic," said Rep. Paul Stam, R-Wake. "I believe cities should be free."


The committee agreed to a provision requiring health insurance companies regulated by the state to cover a particular therapy for autism patients in one bill. Autism advocates have lobbied for the coverage for years, and the House passed a separate bill mandating companies to cover $36,000 of treatment last year. Senate leaders have not taken up the bill and have said they're unsure how it would affect the rollout of the federal health care overhaul.


The bill also retained a measure that bans children and teenagers younger than 18 from using a tanning bed.



Stocks end lower as traders sell blue chips


The stock market had its biggest decline in two weeks Tuesday, led by a sell-off in blue-chip bank and energy stocks. Homebuilders rose after the government reported sales of new homes rose in May to the highest level in six years.


The late-afternoon selling came during a relatively quiet week for Wall Street. Traders said the selling might be tied to large mutual funds having to rebalance their portfolios ahead of the end of the quarter next week. Other traders pointed to the ongoing violence in Iraq as a reason to pull out of the market ahead of the end of the quarter.


The Dow Jones industrial average fell 119.13 points, or 0.7 percent, to 16,818.13. The Standard & Poor's 500 index lost 12.63 points, or 0.6 percent, to 1,949.98 and the Nasdaq composite fell 18.32 points, or 0.4 percent, to 4,350.36.


The Dow fell more than the S&P 500 and Nasdaq as investors sold large, brand-name stocks. Exxon Mobil, Boeing, American Express and JPMorgan Chase all fell 1 percent or more.


The selling in blue-chip stocks marks a recent and notable change in trader behavior. Stocks of large, diversified companies have been among the most popular with investors this year. With the quarter end and mid-year approaching, it's not uncommon for investors to sell some of the best performing names to rebalance their portfolios.


Vertex Pharmaceuticals was a bright spot in the S&P 500. The drug company soared $26.92, or 40 percent, to $93.53 after Vertex said its treatment for cystic fibrosis appeared to work better than a placebo in a late-stage study. Vertex plans to seek approval for the treatment in the U.S. and Europe.


Traders say it's a positive sign to see investors heading back into biotechnology stocks. The sector was among the hardest hit in March and April. Even with today's declines, the S&P 500 Biotechnology index rose 1.3 percent.


"That was a growth area that worried a lot of people, but the news out of Vertex is very bullish," said Ian Winer, director of stock trading at Wedbush Securities. "The news has renewed a risk appetite in that space we have not seen in months."


Micron Technology jumped $1.24, or 4 percent, to $32.50, making it the second-biggest advancer in the S&P 500. The semiconductor maker reported better-than-expected earnings and raised its forecast for the next quarter. Dow component Intel, another major chipmaker, rose 27 cents, or 0.9 percent, to $30.50.


Homebuilder stocks also did well Tuesday after the Commerce Department said sales of new homes jumped 18.6 percent in May to an annualized rate of 504,000. That's the highest level since May 2008.


International concerns remain an issue for investors as well. The United Nations said Tuesday that more than 1,000 people, mostly civilians, have been killed in Iraq so far this month, the highest death toll since the U.S. military withdrew from the country in December 2011. In the United Arab Emirates, Dubai's stock market fell 6.7 percent Tuesday and Abu Dhabi's fell 3.3 percent.


Bond prices rose as investors sought safety amid the stock market declines. The yield on the 10-year Treasury note fell to 2.58 percent from 2.63 on Monday.



Chemical spill lawsuit targets airport


A federal lawsuit blames a Charleston airport runway project in part for the January chemical spill that left 300,000 residents without clean water for days.


The lawsuit said Yeager Airport's runway extension, which has been completed, never safeguarded against stormwater runoff.


In court papers filed Friday, residents and businesses said the airport let water flow downhill to Freedom Industries, where water eroded a tank's foundation. Freedom is tucked between the hilltop airport and the Elk River, the source of drinking water for a nine-county region.


Effects of the runway project that began in 2004 "significantly caused or contributed" to chemicals leaking into the Elk River on Jan. 9, court documents said.


After the January spill, West Virginia environmental inspectors didn't see obvious signs of water runoff from the hillside above Freedom, Department of Environmental Protection spokeswoman Kelley Gillenwater said Tuesday.


Gillenwater said the department couldn't comment on the merits of the lawsuit.


Airport officials said Tuesday that the state approved project plans before construction started 10 years ago. They said Freedom never complained about water runoff, either.


"Yeager Airport takes its responsibility to the community very seriously and that's why we took great care to select qualified, experienced contractors and engineers to design and construct this vital airport safety improvement project," Yeager Airport Executive Director Rick Atkinson said in a news release.


After the spill, dozens of people and businesses sued for profits and wages lost while the Kanawha Valley essentially shut down without clean water. Most lawsuits will be decided through claims in bankruptcy court, where Freedom's dwindling financial resources will eventually be divvied up among interests it owes money.


The allegations against the airport were added to a larger lawsuit Friday that targets a variety of companies and officials, not just Freedom.


Fourteen businesses and individuals are suing the airport, Freedom executives, the chemical's manufacturer, the water company and its parent and runway contractors.



Boehner: administration not helping in IRS probe


House Speaker John Boehner says the Obama administration is not helping Congress get to the truth over the IRS' close scrutiny of conservative groups and the agency's recent revelation that it lost emails related to that probe.


The Ohio Republican says that even though President Barack Obama has promised to cooperate, the administration has not been helpful.


The IRS says it lost some emails by Lois Lerner, who headed the division that processes applications for tax-exempt status. The agency blames that on Lerner's computer crashing — a contention Republicans have said they don't believe.


On Tuesday, Boehner said the IRS explanation "doesn't pass the straight face test."



Miss. Sen Thad Cochran Beats Tea Party Challenger



U.S. Sen. Thad Cochran, R-Miss., speaking at his Canton, Miss., headquarters, on Tuesday. Cochran faced a stiff challenge from Tea Party-backed state Sen. Chris McDaniel.i i


hide captionU.S. Sen. Thad Cochran, R-Miss., speaking at his Canton, Miss., headquarters, on Tuesday. Cochran faced a stiff challenge from Tea Party-backed state Sen. Chris McDaniel.



Rogelio V. Solis/AP

U.S. Sen. Thad Cochran, R-Miss., speaking at his Canton, Miss., headquarters, on Tuesday. Cochran faced a stiff challenge from Tea Party-backed state Sen. Chris McDaniel.



U.S. Sen. Thad Cochran, R-Miss., speaking at his Canton, Miss., headquarters, on Tuesday. Cochran faced a stiff challenge from Tea Party-backed state Sen. Chris McDaniel.


Rogelio V. Solis/AP


Republican Sen. Thad Cochran held on to a slim margin of votes to defeat his Tea Party-backed challenger and win his party's nomination.


Cochran, who at 76 has served six terms in the Senate, made a last-ditch effort to attract traditionally Democratic voters into the Republican primary runoff to bolster his flagging poll numbers against state Sen. Chris McDaniel.


Reuters described the race as "a multimillion-dollar referendum on the direction of the Republican Party."


The Associated Press says Cochran "sent billions of federal dollars to his poor state over a long career. His 41-year-old challenger said taxpayers could not afford that federal largesse."


With just hours before the polls opened on Tuesday, The New York Times said that as Cochran's campaign was "still reaching out to traditional black Democrats. ... But turnout in African-American precincts appeared to be low, and McDaniel supporters were optimistic."


USA Today noted a few bizarre moments in the campaign, including the arrest of four McDaniel supporters "who were charged with felony conspiracy for allegedly sneaking into the nursing home room of Cochran's bedridden wife."



The top 10 songs and albums on the iTunes Store


iTunes' Official Music Charts for the week ending June 23, 2014:


Top Songs


1.Rude, MAGIC!


2.Fancy (feat. Charli XCX), Iggy Azalea


3.Stay With Me, Sam Smith


4.Problem (feat. Iggy Azalea), Ariana Grande


5.Maps, Maroon 5


6.Am I Wrong, Nico & Vinz


7.Wiggle (feat. Snoop Dogg), Jason Derulo


8.Boom Clap, Charli XCX


9.Summer, Calvin Harris


10.Latch (feat. Sam Smith), Disclosure


Top Albums


1.Ultraviolence, Lana Del Rey


2.In the Lonely Hour, Sam Smith


3.x, Ed Sheeran


4.The Hunting Party, LINKIN PARK


5.The Fault In Our Stars (Music ...,Various Artists


6.while(12), deadmau5


7.A.K.A., Jennifer Lopez


8.5 Seconds of Summer, 5 Seconds of Summer


9.Mali Is..., Mali Music


10.Lazaretto, Jack White



(copyright) 2014 Apple Inc.


Fitch: State's bond rating wouldn't be junk


Fitch Ratings says a failure to repay the bonds that financed the 38 Studios deal would negatively affect Rhode Island's bond rating, but not sink it to junk status.


The agency said Tuesday the debate during the last two legislative sessions over whether the state should honor the moral obligation bonds has created "headline risk." But Fitch said it doesn't believe the debate currently affects the state's commitment to pay.


The budget enacted for 2014-2015 includes $12.3 million for the next payment. 38 Studios got a $75 million state-backed loan, then went bankrupt.


An outside report predicted that default would bring junk bond status. Legislative leaders and the governor have insisted the state must pay the bonds or the rating will drop and make future borrowing significantly more expensive.



Abe's grand plan to revive Japan's economic might


Prime Minister Shinzo Abe announced a slew of measures Tuesday aimed at restoring Japan's global competitiveness. Past governments have sought and failed to enact many of the reforms Abe and other leaders say are needed to revamp an outdated post-World War II industrial model and sustain growth for decades to come.


Resource-scarce Japan needs exports and other overseas earnings to pay for imports of fuel and food to feed its 127 million people. While Toyota Motor Corp. is the No. 1 automaker, other big icons of Japan Inc., like Sony Corp., are losing out to rivals like Korea's Samsung Electronics Co.


But rather than a sweeping overhaul, the 230-point plan — dubbed the "third arrow" that Abe promised along with his first two arrows of monetary and fiscal stimulus — is an exhaustive list of potential regulatory changes that must overcome deep-rooted resistance from vested interests to succeed.


Below are the basics of the reform plan:


---


LABOR: Japan's workforce is shrinking and aging. Abe is promising more childcare to enable more women to work while raising families. He wants to expand programs for migrant worker "trainees" to fill labor shortages in areas such as nursing, elder care and construction and encourage more widespread use of robots. But there is strong resistance to letting more foreigners settle in Japan. Labor is strongly opposed to a proposal to end overtime pay for top white collar workers — a measure critics say might lead companies to force even longer hours on their already overworked employees.


INVESTMENT: Abe wants Japanese corporations to invest more and create more jobs, helping to support growth by creating demand and raising wages. To entice companies to spend a larger share of cash hoards that total some 222 trillion yen ($2.2 trillion), he is promising to cut corporate taxes to below 30 percent from the current rate of over 35 percent, while pushing for stronger governance rules. Since the small and medium-sized companies that employ seven in 10 of all Japanese tend not to pay corporate tax, it is unclear if that will encourage investment or improve profitability for companies struggling to compete. The goal is to restore total capital investment to the 70 trillion yen level it hit in 2007, by 2015.


INNOVATION: Support for research and development could drive growth of cutting-edge medical and biotechnology industries, while Abe has also promised to dismantle many barriers to entrepreneurship. However, the urge to innovate and start up new businesses faces invisible barriers embedded in an educational, employment, social and financial system that strongly discourages risk taking.


GLOBALIZATION: Through the Trans-Pacific Partnership, a U.S.-led trade pact, Abe hopes to boost access to fast-growing markets in Asia and attract more foreign investment in Japan. He is traversing the globe peddling Japanese technology and infrastructure projects and championing a "Cool Japan" program to help sell Japanese "anime" and other unique cultural assets to the rest of the world, and to triple the number of foreign visitors each year to over 30 million.


AGRICULTURE: The politically powerful farm lobby is resisting efforts to dismantle the JA agricultural cooperatives empire. Abe hopes to rezone farmland and shift toward more commercial, large scale farming from the current house-hold based system. One benchmark is a goal to double food exports to 1 trillion yen by 2020.


MEDICINE: Changes to health insurance rules could allow use of more types of treatment, but are strongly opposed by the medical lobby.


ENERGY: Deregulation of Japan's electricity sector was decided on before Abe took office, but it is expected to spur more investment in renewable energy, though the government insists that Japan must restart its idled nuclear plants, once they pass tightened safety checks, to help trim costs for imported gas and oil. No big changes in this area.


PAYING FOR IT ALL: Japan's gross public debt amounts to more than 240 percent of the GDP, compared with 72 percent for the U.S. After pumping trillions of dollars into the economy through public works spending and ultra-loose monetary policy, the Ministry of Finance needs to bring things back into balance. The sales tax was raised to 8 percent from 5 percent in April and is due to hit 10 percent next year. Japan needs higher tax revenues and is cutting pensions, welfare and health insurance, to counter soaring costs. A plan to revamp the investment strategies of the 130 trillion yen Government Pension Investment Fund may raise returns, helping pay for railways, gas pipelines and electricity grids, and attract more investment in stocks and other financial markets.



Eyes on you: Experts reveal police hacking methods


Law enforcement agencies across the globe are taking a page out of the hacker's handbook, using targets' own phones and computers to spy on them with methods traditionally associated with cybercriminals, two computer security groups said Tuesday.


Drawing on a cache of leaked documents and months of forensic work, two reports about the private Italian firm Hacking Team expose a global network of malicious software implants operated by police and spy agencies in dozens of countries.


"This in many ways is the police surveillance of the now and the future," said Morgan Marquis-Boire, a security researcher with Citizen Lab and a lead author of one of the reports. "What we need to actually decide how we're comfortable with it being used and under what circumstances."


Citizen Lab's work, paired with a report published simultaneously by Moscow-based Kaspersky Lab, helps complete the picture of state-sanctioned surveillance sketched by Edward Snowden's sensational revelations about the National Security Agency and its international allies.


While many of Snowden's revelations dealt with the mass monitoring of communication as it flows across the globe, Hacking Team brags about more aggressive forms of monitoring that let authorities turn people's phones and laptops into eavesdropping tools.


Hacking Team's chief spokesman, Eric Rabe, dismissed the reports as consisting of a lot of old news. Hacking Team's ability to break into iPhones and BlackBerrys is "well known in the security industry," he said in an email.


"We believe the software we provide is essential for law enforcement and for the safety of all in an age when terrorists, drug dealers and sex traffickers and other criminals routinely use the Internet and mobile communications to carry out their crimes," he said.


Rabe invoked Hacking Team's customer policy, which says the company sells only to governments which it screens for human rights concerns. A company-established panel — whose membership Rabe declined to specify — checks out every potential client. While Hacking Team realizes that its software can be abused, the policy says the company takes "a number of precautions to limit the potential for that abuse."


Those precautions haven't prevented copies of Hacking Team's malicious software from being used to target more than 30 activists and journalists, according to a tally maintained by Citizen Lab, a research group based at the University of Toronto's Munk School of Global Affairs.


Citizen Lab's report provided an unusual level of insight into how the malware operates, showing how devices can be compromised through booby-trapped emails or infected USB sticks, or even pushed onto handsets by a pliant telephone company.


Screenshots released by Citizen Lab appear to show a control panel complete with on-off switches for recording text messages, calls, keystrokes and visited websites. Other options open to Hacking Team's customers include the ability to force infected phones to take regular pictures or video and to monitor the position of an infected handset via Google Maps, effectively turning a target's phone into both a hidden camera and a tracking device.


Hacking Team built its programs for stealth. The spy software implanted on iPhones is calibrated to avoid draining the phone's battery, both Citizen Lab and Kaspersky said. On BlackBerrys, it can be programmed to ship stolen data via Wi-Fi to avoid jacking up the phone bill. The spyware even comes with a special "crisis" mode that will cause it to self-destruct if it's in danger of being detected.


"The victim's got almost no chances of figuring out that their iPhone is infected," said Kaspersky malware expert Sergey Golovanov, who investigated the rogue program for his firm.


Hacking Team does not say who its customers are, but researchers can draw inferences from the network of servers tasked with controlling its spyware.


In its report, Kaspersky says its scans uncovered 326 Hacking Team command servers based in more than 40 countries, including 64 servers in the United States, 49 in Kazakhstan and 35 in Ecuador. Other countries hosting multiple servers include the United Kingdom, Canada and China.


Kaspersky's report cautions that hosting a Hacking Team command server doesn't necessarily mean officials in that country are using its software, although it said that would be logical due to the complications of controlling spyware from another nation's territory.


Hints about who is using these programs can also be found by studying how victims got infected.


Citizen Lab found Hacking Team software hiding in an Android phone application ostensibly designed to provide Arabic-language news from Saudi Arabia's Qatif region, the scene of protests in the wake of the 2011 Arab Spring revolutions. Saudi officials did not immediately return calls seeking comment.


Steven Bellovin, a Columbia University academic who has written about hacking in the law enforcement context, described the reports' findings as credible. In an email exchange, he said there was nothing inherently wrong about police using malware to infect their targets, noting that both police and criminals do carry guns.


"The hacking tools fall into the same category. They're dual use," he said.


But Bellovin said there need to be strict rules - and open debate - about the law enforcement uses of malicious software before government-commissioned viruses are unleashed on the Internet.


"None of that seems to be present here," he said.


---


Online:


Citizen Lab's report: http://bit.ly/1sD3fyg


Kaspersky's report: http://bit.ly/1sD3fyh


Hacking Team's video: http://bit.ly/1sD3d9w



Corn edges lower as weather conditions remain good


The price of corn dropped as weather conditions remain favorable for the crop.


Corn for July delivery dropped 1.5 cents, or 0.3 percent, to $4.43 a bushel.


The price of the grain has plunged in the last two months as rains in the corn growing regions of the U.S. have been light and temperatures remained moderate. The U.S. Department of Agriculture is forecasting a record crop this year.


"The main part of the corn belt looks very good," said Todd Hultman, a grains analyst at DTN.


In other trading of agricultural products, wheat and soybeans also fell.


Wheat dropped 8.25 cents, or 1.4 percent, to $5.81 a bushel and soybeans fell 9.25 cents, or 0.7 percent, to $12.25 a bushel.


Most metals climbed, led by platinum. Gold and silver also ended the day higher.


Platinum for July climbed $15.30, or 1.1 percent, to $1,471.90 an ounce. Palladium for September rose $7.75, or 0.9 percent, to $830.40 an ounce.


Gold rose $2.90, or 0.2 percent, to $1,321.30 an ounce. Silver for July gained 12.70 cents, or 0.6 percent, to $21.04 an ounce. Copper was little changed at $3.15 a pound.


The price of oil fell 14 cents, or 0.1 percent, to $106.03 a barrel as traders monitored the insurgency roiling Iraq for any signs it could affect the country's oil production and exports.


In other energy trading, wholesale gasoline rose 2 cents, or 0.6 percent, to $3.13 a gallon, natural gas gained 9 cents, or 2 percent, to $4.54 per 1,000 cubic feet. Heating oil rose 1 cent, or 0.3 percent, to $3.04 a gallon.



Putin says US trying to derail gas pipeline plan


The U.S. is trying to derail a project to build a gas pipeline that bypasses Ukraine to supply Europe, Russian President Vladimir Putin said Tuesday after Russian and Austrian energy firms agreed to build the pipeline's western end.


Austria's OMV and Russia's Gazprom signed a contract for the construction of the pipeline's Austrian section hours before Putin arrived on his second trip to the West since tensions spiraled over Russia's actions in Ukraine, a crisis that has prompted calls for Europe to lessen its reliance on Russian gas.


OMV general director Gerhard Roiss said the South Stream pipeline will "ensure energy security for Europe, particularly for Austria." Austrian President Heinz Fischer, who met with Putin, noted that large sections of the pipeline will cross NATO and European Union members Bulgaria and Hungary.


"No one can tell me why ... a gas pipeline that crosses NATO and EU states can't touch 50 kilometers (31 miles) of Austrian territory," he said.


Asked about American criticism of the pipeline, which is expected to start running in late 2016, Putin said that "our American friends ... want to supply Europe with gas themselves."


"They do everything to derail this contract. There is nothing unusual about it. It's competition, and political means are used in this competition," he said.


Bulgaria this month froze work on its section of the pipeline on orders from the EU Commission, which said Bulgaria hadn't respected rules on awarding public contracts. The Commission has also delayed some political talks on the pipeline amid the crisis in Ukraine.


Austria is a member of the EU, which along with the U.S. has imposed visa bans and asset freezes on a number of Russian officials.


The U.S. Embassy in Vienna said earlier Tuesday that trans-Atlantic unity has been essential to "discouraging further Russian aggression" and that the Austrians "should consider carefully whether today's events contribute to that effort."



Peppermill-owned casinos launch online poker


A chain of casinos in northern Nevada is getting into the online gambling business.


Peppermill Resorts launched the new online poker partnership on Tuesday with Las Vegas-based Ultimate Poker.


Peppermill officials say players can make deposits at their flagship casino in Reno at the Western Village in Sparks, and three hotel-casinos in Wendover on Interstate 80 along the Utah line.


The Peppermill says gamblers must sign up online at http://bit.ly/1lPUvkG to open an account and then visit any of the casinos to make a secured deposit before playing.


The 2013 Nevada Legislature approved legal online poker within state borders. Ultimate Gaming, owned by Las Vegas-based Station Casinos, is one of three operating websites alongside World Series of Poker, owned by Caesars Entertainment, and Real Gaming, owned by the South Point.



Tangipahoa council wants to see hospitals' budgets


The Tangipahoa Parish Council has voted to request budget information from North Oaks Health Systems in Hammond and Hood Memorial Hospital in Amite.


The Advocate reports (http://bit.ly/1peQzfm ) the council also decided to establish a committee to explore the operations of the two hospitals.


The actions came after attorney Glen Galbraith told the council it has the authority to review the budgets of the hospitals and to exercise vetoes of any budgetary items with which the council did not agree. The council has not sought or obtained copies of the budgets for the two hospitals for many years.


Galbraith was retained by the council at its June 9 meeting to study what authority the council has over the two hospitals.


In 1955, the old Tangipahoa Parish Police Jury established Hospital Service District No. 1 in the southern end of the parish. North Oaks, which grew from that beginning, has not accepted any local tax money for more than two decades.


Hood Memorial was founded by Hospital Service District No. 2, which serves the northern end of the parish.


Galbraith said the council has the authority to review the budgets of all special service districts, such as Gravity Drainage District No. 1, sewer and lighting districts.


The attorney said the Parish Council also has the authority to create a board of commissioners to oversee the hospital districts and to appoint the chief operating officer of the hospital. The Parish Council names members of the commissioners who oversee hospital operations.


North Oaks has come under fire after announcing it plans to establish a limited retail pharmacy to serve its employees and patients who were being discharged. A number of independent pharmacy owners have protested those plans.



New House Leadership Puts Export Bank On Shakier Ground



The U.S. government-backed loans that help Boeing and other U.S. manufacturers sell abroad has opponents of renewing the Export-Import Bank's charter accusing it of crony capitalism.i i


hide captionThe U.S. government-backed loans that help Boeing and other U.S. manufacturers sell abroad has opponents of renewing the Export-Import Bank's charter accusing it of crony capitalism.



Elaine Thompson/AP

The U.S. government-backed loans that help Boeing and other U.S. manufacturers sell abroad has opponents of renewing the Export-Import Bank's charter accusing it of crony capitalism.



The U.S. government-backed loans that help Boeing and other U.S. manufacturers sell abroad has opponents of renewing the Export-Import Bank's charter accusing it of crony capitalism.


Elaine Thompson/AP


The Export-Import Bank, created by President Franklin Roosevelt in 1934 to boost U.S. exports during the Great Depression, needs its charter to be reauthorized by September's end if it is to continue providing loans to U.S. exporters and overseas companies.


The bank has the support of House Majority Leader Eric Cantor, so it sounds like an easy vote.


But Cantor was recently defeated in his primary by David Brat, the libertarian college professor who portrayed the soon-to-be-ex-majority leader as a shameless tool of big business.


That's the most important thing to know to understand why, during an election year, the Ex-Im Bank's political position is eroding, at least outwardly.


Right now, reauthorization seems rather iffy.


On Tuesday, Speaker John Boehner wouldn't tell reporters whether he supported reauthorization, saying instead, "We are going to continue to work with our members" and "We are going to work our way through this."


Boehner indicated he would wait for a Wednesday hearing of the House Financial Services Committee and would listen to Rep. Jeb Hensarling, the committee's chairman, for a proposed way forward. Hensarling opposes reauthorizing the bank, so that message from the speaker wasn't likely to perk up the bank's supporters.


The title of Wednesday's hearing, by the way, is, "Examining Reauthorization of the Export-Import Bank: Corporate Necessity or Corporate Welfare?"


The witness list, incidentally, gave a sense of the complexity of the support for or opposition to the bank.


The leadoff panel was scheduled to include the president of the Air Line Pilots Association and the CEO of Delta Air Lines. The union hasn't been against the bank per se, but it does oppose bank support for non-U.S. airlines that are purchasing wide-body airliners when U.S. carriers can't get the same favorable financing. Delta Airlines' CEO has had a similar criticism but is making it clear he supports the bank in principle.


Providing less ambivalent support for the bank will be the CEO of FirmGreen, a clean-energy technology company that has said uncertainties over the bank's future have already cost it overseas business. Clearly opposing the bank will be a scholar with the libertarian Mercatus Center at George Mason University, who argues that corporate behemoths like Boeing and General Electric get the most benefit and that their political contributions purchase support for the bank.


Boehner's cryptic comments were especially unpromising for the bank, since the new House majority leader, Rep. Kevin McCarthy of California, was a lot less sphinxlike than Boehner, saying over the weekend that he opposes reauthorizing the bank.


Asked directly by host Chris Wallace during a Fox News Sunday interview if he would "allow the Ex-Im Bank to expire in September," he said: "Yes, because it's something that the private sector can be able to do."


For conservatives who consider themselves free-market purists, the bank is the epitome of their despised "crony capitalism," like the bailouts of Wall Street that occurred at the start of the Great Recession in 2008.


It was anger over those bailouts and other Washington spending that put taxpayer money in the service of big business that fed much of the anger that gave birth to the Tea Party movement.


McCarthy channeled that sentiment when he said on Fox News Sunday, "One of the problems with government is it's going to take hard-earned money so others do things that the private sector can do. That's what Ex-Im Bank does."


Whether the private sector can or will actually take up the slack that would be left if the bank can't continue on is a debate for a different blog post. It's sufficient to say the bank's supporters assert that the private sector won't, because the risks are just too great. This would leave many U.S. exporters at a disadvantage, with overseas competitors helped by governments with few to no qualms about subsidizing their own industries.


The bank fight is the latest example of an economic issue breaking down the usual partisan barricades in Washington. The White House and congressional Democrats are joined by dozens of House Republicans and business groups like the U.S. Chamber of Commerce in pushing for the bank's reauthorization. The bank pays for itself out of the fees it collects, they say, so taxpayers don't pay anything. It's also a matter of supporting U.S. jobs.


Cantor, too, said it was about supporting American jobs — before he lost his.



Review: Colors come to life in new Samsung tablet


Samsung's new Galaxy Tab S tablet looks different.


As soon as I turned on the screen, I noticed that the colors are stunning and vivid. Red looks redder, and greens are greener. The lawn and the trees in "Ghostbusters" look alive, as does a purple-tinted apparition.


The Tab S is also thinner than other leading tablets, at a quarter of an inch (6.6 millimeters). The model with the smaller screen is lighter, too.


Samsung Electronics Co. achieves all this by using a display technology previously limited to smartphones. It's called AMOLED, for active-matrix organic light-emitting diodes. Samsung released an AMOLED tablet in 2012, but it was expensive and didn't sell well. The new ones are priced more competitively — the same as iPads of comparable size.


The Tab S with an 8.4-inch screen, measured diagonally, costs $400, while a 10.5-inch version costs $500. Both start selling in the U.S. on Friday.


AMOLED screens are more expensive than conventional LCD screens, but they produce richer colors. They also require no backlighting because the individual pixels produce their own light. That eliminates at least one layer of material and contributes to thinness.


No backlighting means the screen is able to produce a true black. On LCD screens, black isn't really black, but more like a patch of night sky with a hint of light from nearby stars. These differences are subtle, but noticeable once you place a Tab S next to Apple's iPad and Amazon's Kindle Fire HDX. True black means deeper contrasts in video and photos.


No backlighting also saves power, at least for darker images. On the other hand, AMOLED screens tend to need more energy to match the brightness on conventional displays. So images with a lot of white and bright colors might actually drain the battery faster.


On the 10.5-inch model, the battery level drained to 80 percent after displaying a mostly white Web page for two hours. By contrast, it drained to just 92 percent with a mostly black Web page. On the iPad Air, it was down to about 88 percent in both cases. Nonetheless, battery life on the Tab S is impressive — more than 12 hours of streaming video on Hulu with the large version and more than 11 with the small one. That's comparable to what I get on iPads.


AMOLED screens have a few other drawbacks besides uneven power consumption:


— As much as I like the rich colors, they can sometimes look unnatural. Caucasian faces sometimes look too orange, for instance.


— AMOLED screens don't perform as well outdoors. Although I can still make out text and icons, they are easier to see on the iPad and the Kindle.


And while the Tab S is light and slim, the edges and the back don't feel as smooth as on an iPad. That's partly from Samsung's use of plastic rather than metal on the back.


Both S models have a resolution of 2,560 pixels by 1,600 pixels, which is among the best and translates into sharper images, particularly noticeable with text. But beyond a certain point, it's really hard for the eyes to tell. The iPad's resolution is lower, but text looks as clear.


Meanwhile, the Tab S lets you control a Samsung smartphone using Wi-Fi. Currently, it works only with the latest phone, the Galaxy S5. You can leave your phone as far as 300 feet away, such as in another room or in the house when you're in the backyard. The phone's screen appears in a window on your tablet. From there, you can make or receive calls, send texts and access any of the apps on your phone.


Another feature lets you access Windows or Mac computers remotely. The PC doesn't have to be on the same network, so there's no 300-foot limit. How well it works with office computers will depend on corporate policies. It worked fine with a Mac laptop on a non-work network.


I like the ability to unlock the device with a fingerprint scan instead of a passcode. The Tab S supports up to eight users, each of whom can store up to three fingerprints. It would have been neat for the tablet to automatically pull up the correct profile based on the fingerprint used. Alas, you need to select your profile first.


The tablet also comes with lots of freebies, including a 12-month subscription to Bloomberg Businessweek, and introduces a new magazine app called Papergarden. Unfortunately, Papergarden works only with selected titles from Conde Nast, Hearst and a few others at the moment. Businessweek directs you to its own app. Magazines you buy through Google Play use yet another app. As much as I like freebies, I hate confusion.


Users of other Samsung devices might recognize other features, including the ability to run multiple apps side by side and to keep certain files hidden when lending a device to others. On-screen keyboards let you use the control key the way you can on laptops, such as CTRL-C to copy text and CTRL-V to paste.


Apple's market-leading iPads are still the ones to beat, given that they have a wider selection of apps that aren't simply phone apps made larger. But Samsung has a strong challenger with its new Tab S devices. The stunning colors might be enough to draw customers.



The top iPhone and iPad apps on App Store


App Store Official Charts for the week ending June 23, 2014:


Top Paid iPhone Apps:


1.Heads Up!, Warner Bros.


2.Afterlight, Simon Filip


3.Minecraft - Pocket Edition, Mojang


4.Sleep Cycle alarm clock, Northcube AB


5.Geometry Dash, Robert Topala


6.Sleep Talk Recorder, MadInSweden


7.A Dark Room, Amirali Rajan


8.Stickman Soccer 2014, Robert Szeleney


9.Garmin víago, Garmin


10.Plague Inc., Ndemic Creations


Top Free iPhone Apps:


1.FIFA Official App, FIFA


2.Guess The Emoji : Emoji Pops, Conversion, LLC


3.Rising Star ABC, Screenz Cross Media LTD


4.TwoDots, Betaworks One


5.WatchESPN, ESPN


6.Fish Out Of Water!, Halfbrick Studios


7.Angry Birds Epic, Rovio Entertainment Ltd


8.Amazon Music with Prime Music, AMZN Mobile LLC


9.Avoid The Circles, Barry Wyckoff


10.Snapchat, Snapchat, Inc.


Top Paid iPad Apps:


1.Minecraft - Pocket Edition, Mojang


2.LEGO Marvel Super Heroes: ..., Warner Bros.


3.MONOPOLY for iPad, Electronic Arts


4.THE GAME OF LIFE for iPad, Electronic Arts


5.The Survival Games : Mini Game..., wang wei


6.Card Wars - Adventure Time, Cartoon Network


7.Survivalcraft, Igor Kalicinski


8.Heads Up!, Warner Bros.


9.Geometry Dash, Robert Topala


10.Plants vs. Zombies HD, PopCap


Top Free iPad Apps:


1.Angry Birds Epic, Rovio Entertainment Ltd


2.WatchESPN, ESPN


3.Fish Out Of Water!, Halfbrick Studios


4.FIFA for iPad, FIFA


5.Bubble Witch 2 Saga, King.com Limited


6.Rising Star ABC, Screenz Cross Media LTD


7.Fruit Ninja HD, Halfbrick Studios


8.TRANSFORMERS: AGE OF EXTINCTIO..., Mobage, Inc.


9.Netflix, Netflix, Inc.


10.YouTube, Google, Inc.



(copyright) 2014 Apple Inc.


Whole Foods to pay $800,000 in overpricing case


Whole Foods will pay about $800,000 in penalties and fees after an investigation found the grocery retailer was overcharging customers in California.


State and local inspectors discovered that purchased foods weighed less than the label advertised and the weight of salad bar containers wasn't subtracted at checkout, prosecutors said. In addition, the grocer sold prepared foods like kebabs by the item rather than by the pound as mandated by law.


The pricing discrepancies violated consumer protection laws regarding false advertising and unfair competition, prosecutors said.


Whole Foods must pay $210,000 to each of the city attorneys of Santa Monica, Los Angeles and San Diego, who brought the case against the retailer. Whole Foods must also reimburse county and state agencies that conducted the pricing investigation and pay $100,000 to a weights and measurements enforcement fund.


As part of an agreement covering five years, the grocer must appoint state- and store-level pricing accuracy managers, and each of the 74 Whole Foods stores in California will face random quarterly audits.


The consumer protection case was brought against Whole Foods Market California Inc. and Mrs. Gooch's Natural Food Markets Inc., the two subsidiaries of Whole Foods Market Inc. that operate its California stores.


Whole Foods issued a statement noting that the company cooperated with the yearlong investigation and prices were accurate 98 percent of the time. The Austin, Texas-based retailer vowed to improve internal procedures to reduce human error, according to the statement.



Groups announce economic redevelopment project


A plan to spur economic growth in a northwest Detroit neighborhood was announced Tuesday during the 2014 Clinton Global Initiative America meeting in Denver.


The Motor City Project will highlight using available resources like manpower, vacant land and empty buildings to make the area attractive to potential and current residents seeking to start their own businesses.


It also will help new arrivals work through cumbersome city codes and other red tape to operate home- and neighborhood-based businesses, World Policy Institute Senior Fellow Greg Lindsay told The Associated Press.


Lindsay said zoning rules in many U.S. cities make it difficult for entrepreneurs to operate out of their homes or garages, but such "microenterprises" have been successful in poorer countries.


He pointed to the practice of salvaging wood, countertops and other materials from abandoned houses in Detroit and selling it to retrofit homes.


"That's what happens every day in places like Nairobi," Lindsay said. "They are starved for resources. People realize everything they have is an asset."


The Detroit neighborhood chosen is a mix of homes and small manufacturing. It is anchored by Focus: HOPE, a social and economic services agency.


As part of the project, a so-called Resilience Center will be created to attract "urban homesteaders and migrants from other neighborhoods, cities and countries to relocate to the area," the World Policy Institute said in a release.


Staff also will work with entrepreneurs to find funding and other support for their ventures.


"We want to create this pop-up community center where we would bring in new arrivals and help them acclimate to their conditions," Lindsay said.


The two-year project is in the design and development phase and is starting with in-kind contributions. It hopes to expand with partners from the Clinton Foundation's Clinton Global Initiative. The initiative was establish in 2005 by former President Bill Clinton. It brings together foundations, business and government leaders to develop solutions to challenges impacting people around the world.



Hariri: Christian dialogue essential for election


BEIRUT: Former Prime Minister Saad Hariri Tuesday called for the swift election of a president, saying an intra-Christian accord was a prerequisite for the Future Movement to formulate a stance regarding a presidential poll.


“We, as a political movement, have a clear stance in support of an intra-Christian dialogue so that we can brainstorm ideas and a consensus is reached,” Hariri said after a meeting with former President Michel Sleiman in Paris.


“This post [of president] is for all the Lebanese, but it is also a Christian post. This issue is important for us as the Future Movement. Thus, I believe that Christian party heads and leaders should reconcile, forgive each other and engage in dialogue,” the Future Movement leader continued.


Hariri said he was not in need of promises in order to return to Lebanon, in reference to Free Patriotic Movement leader Michel Aoun’s remarks in which he said that he offered to guarantee Hariri’s “political security” in Lebanon at a meeting between the two earlier this year.


“When I decide to come back to Lebanon, God will protect everybody. Maybe Gen. Aoun has clarified what he meant later, but regardless, these remarks were not appropriate and should not have been said either to Saad Hariri or to any other politician in Lebanon,” Hariri said.


Hariri has remained outside Lebanon since April 2011 for security reasons.


He voiced hope that a new president would be elected during the Parliament session scheduled for July 2.


The Future Movement leader said he had exchanged ideas regarding Lebanon with French Foreign Minister Laurent Fabius, whom he met in Paris earlier Tuesday.


“God willing, everybody is seeking Lebanon’s best interest,” Hariri said.


Hariri is expected to meet U.S. Secretary of State John Kerry in Paris Thursday.


He met Progressive Socialist Party leader Walid Jumblatt last week and the Al-Markazia news agency reported that the Druze leader was given an appointment with French President Francois Hollande.Meanwhile, visitors of Speaker Nabih Berri quoted him as saying it was necessary to elect a president and energize the work of Cabinet and Parliament.


He made the remarks when asked why he had not called for National Dialogue sessions.


United Nations Undersecretary-General for Political Affairs Jeffrey Feltman called on Lebanese leaders to swiftly end the presidential vacuum, which will have lasted exactly a month Wednesday.


“We again underline the urgency for Lebanon’s leaders to ensure the election of a president without further delay and stress the importance for the government meanwhile to discharge its responsibilities effectively,” Feltman said Monday in a briefing to the U.N. Security Council on the situation in the Middle East.


Al-Markazia said Tuesday that during a meeting between Feltman and Syrian President Bashar Assad’s adviser Bouthaina Shaaban in Oslo last week, the U.N. official emphasized that Syria should not impede the election of a president in Lebanon.


But many, such as Lebanese Forces leader Samir Geagea, remain pessimistic about the prospect of electing a new president in the near future.


“We are still at the starting point. In light of the developments I was informed of, unfortunately I see no light at the end of the tunnel we are in,” Geagea said after meeting with Maronite Patriarch Beshara Rai in Bkirki.


The LF leader said a “war of elimination” was being fought against the presidential position in Lebanon.


“The only thing that is being eliminated ... is the presidency, as we have no president,” he said. “Until now, I see no reason for not having a president.”


“I have no answer on why they are disrupting the holding of the presidential election,” Geagea added. “All the pretexts given are neither convincing nor acceptable.”


In an indirect reference to Aoun, Geagea said: “No one has the right to disrupt the country and leave the presidential seat empty for the sake of increasing his chances of becoming a president.”


Parliament has failed to elect a new president during seven sessions held since April 23.


The March 14 coalition has backed Geagea’s nomination for the highest Christian post in the country, but its March 8 rivals have subsequently rejected his candidacy.


Hezbollah and Aoun’s lawmakers have boycotted all but one election session, thus preventing Parliament from achieving quorum.


They argue that they will only attend when an agreement on a candidate is reached ahead of time.


The March 8 coalition has hinted that it supports Aoun for president. The FPM leader has been engaged in talks with Hariri’s Future Movement since January in a bid to win its support for his presidential bid.


Responding to Geagea, MP Ibrahim Kanaan, from Aoun’s bloc, said the LF leader had contributed to weakening the presidential position by supporting the Taif agreement, arguing that the deal had “eliminated” the role of the presidency. Some believe the 1989 peace agreement that ended the Civil War gave more power to the prime minister, traditionally a Sunni, than the president.


“We remind he who accuses us of eliminating it [the presidency], that it was already eliminated in a large settlement to which he was party 24 years ago,” Kanaan said after attending the weekly meeting of the Change and Reform parliamentary bloc.


“Are we really now eliminating it or rather trying to revive it and reclaim it in terms of our rights?” Kanaan asked. “We need a presidency that provides an effective presence for Christians.”



Bomber was bound for southern suburbs


BEIRUT: The suicide bomber who killed a security officer and wounded 25 people in this week’s midnight attack had intended to strike “a big target” in Beirut’s southern suburbs, but his plan was foiled by a sudden malfunction in his vehicle, judicial sources said Tuesday.


“The suicide bomber did not intend to blow himself up in the location where the bombing occurred. Information indicates that he had intended [to strike] a big target in Beirut’s southern suburbs,” a senior judicial source told The Daily Star.


The midnight suicide bombing outside a cafe near a Lebanese Army checkpoint in Tayyouneh, one of the main entrances into the southern suburbs, was the second to jolt Lebanon in three days, heightening fears of violent spillover from Syria and Iraq.


Former Prime Minister Saad Hariri condemned the Tayyouneh bombing as “a cowardly act by some groups that do not want the state,” and urged Hezbollah to withdraw from Syria to spare Lebanon further bombings linked to the neighboring conflict.


“The government and security and military commanders must work seriously to stop this cycle,” Hariri told reporters after meeting former President Michel Sleiman in Paris.


“The fire will reach us if some are interfering in Syrian or Iraqi affairs,” he said.


Speaker Nabih Berri warned of security threats as a result of the developments in Iraq.


“The security situation is dangerous in light of what is happening in Iraq and the Saudi-Iranian alienation,” Berri was quoted as saying, referring to the rift between the Sunni Gulf kingdom and Shiite Iran.


Prime Minister Tammam Salam also condemned the bombing, saying: “This criminal action ... is a clear attempt to undermine Lebanon’s stability and strike at its national unity.”


Hezbollah condemned “this cowardly action and whoever stood behind it,” calling on the military and security forces to continue their efforts “to thwart criminal conspiracies and plans against Lebanon and the Lebanese.”


The judicial source, speaking on condition of anonymity, said the suicide bomber deliberately drove through Tayyouneh’s inner streets in a bid to avoid the Army checkpoint.


But a sudden malfunction forced him to stop in the middle of the road outside a cafe in the neighborhood, the source added.


The car’s sudden stop raised the suspicions of two General Security personnel who happened to be driving down the same road. The two officers stepped out of their vehicle and questioned the bomber, who claimed his car key had broken and he was trying to start the car, the source said.


The bomber’s nervous behavior prompted Ali Jaber, one of the two officers, to race to the nearby Army checkpoint to alert them while Abdul-Karim Hodroj, a General Security sergeant, stayed with the bomber to ensure he did not escape.


Seconds later, the bomber detonated the vehicle, killing Hodroj instantly, the source said. Jaber was wounded in the bombing and taken to Sahel Hospital.


Announcing Hodroj’s death, the Directorate General of General Security said the victim had spared the area “a real disaster [that would have occurred] had the terrorist been able to reach any civilian or military gathering to carry out his crime.”


It added that General Security personnel are ready to confront terrorism alongside other security forces.


The judicial source added that the vehicle had been rigged with between 25 and 30 kilograms of inflammable explosives attached to detonators and that one of the detonators had malfunctioned, preventing a further problem.


DNA tests confirmed that Hodroj, who was reported missing just after the blast, had been killed.


Military Prosecutor Saqr Saqr ordered security agencies to launch a probe. Saqr, who visited the blast scesitene Tuesday morning, said explosives were planted everywhere in the car. Lebanon has been on high alert since a suicide bombing at a police checkpoint on the Beirut-Damascus highway last Friday. A policeman was killed and 33 people were wounded. General Security head Maj. Gen. Abbas Ibrahim narrowly escaped after the blast went off 200 meters from his convoy.


Meanwhile, an Al-Qaeda-affiliated group warned Hezbollah of more attacks in the southern suburbs in what appeared to be an indirect claim of responsibility for Monday’s suicide bombing in Tayyouneh.


Sirajeddine Zuraiqat, the religious guide of the Abdullah Azzam Brigades, said the explosions were part of a series of attacks in response to Hezbollah’s military intervention in Syria. “[Hezbollah] will not be living safely, until security is returned to the people of Syria and Lebanon,” he wrote on Twitter.


Meanwhile, a French national who was detained during a police raid on a hotel in Beirut last week said the Al-Qaeda-inspired Islamic State of Iraq and Greater Syria (ISIS) recruited him to carry out a suicide attack in Lebanon, a source close to the investigation said. French Foreign Ministry spokesman Romain Nadal confirmed Tuesday that a French national had been arrested in Lebanon on suspicion of planning a terror attack.


The man, originally from the Comoros islands, confessed “to having been recruited by ISIS from abroad, tasking him to move to Lebanon and prepare himself for a suicide operation that would be scheduled later,” the judicial source told The Daily Star.


The suspect was told to wait at the Napoleon Hotel in Hamra until someone delivered the explosives-rigged vehicle to him and specified the target where he would carry out the bombing, the source said, adding that the detainee said he arrived in Beirut a week before his arrest accompanied by another person tasked with a similar mission.


According to the source, the suspect told investigators that a room was reserved for him and the other man, who then changed his mind and decided to leave Beirut two days before the ISF raided the hotel.


The detainee claimed that people he did not know used to come to the hotel and give him money to pay for his residence and food, the source said.