Monday, 21 July 2014

Plans to rebuild Haiti capital displace families


The broad avenues in the Haitian government's promotional material are clean and unbroken, dotted with palm trees, parks and manicured expanses of grass. The new ministry buildings are sleek and modern but retain some of the neo-classical architecture of the former structures lost to natural disaster.


This is the grand, dreamlike vision of central Port-au-Prince that President Michel Martelly says will replace what was toppled when a 7.0-magnitude earthquake left much of Haiti's capital in ruins on Jan. 12, 2010. Sketched plans look more like a wealthy Miami suburb than the gritty downtown of old that housed both state institutions and shabby tenements.


"These plans will take a long time to finish, perhaps another 10 years," says Harry Adam, executive director of the government agency that is responsible for the construction of public buildings and housing. "But I think it's realistic. We can do it."


Demolitions began in June for construction of an "administrative city" covering 30 hectares (75 acres) downtown.


But the plan hailed as a sign of post-quake rebirth by some residents has also set off a firestorm of criticism for creating a new wave of homelessness after many poor renters were given just minutes to vacate their dwellings before bulldozers arrived.


While there are no available figures on the number of people left homeless by the demolitions, the city center has become dotted with new encampments of tarp shacks in recent weeks. Hills of rubble left by bulldozers have grown so large it almost looks like a fresh quake just hit.


Bitter quake survivors, some who only recently were moved by aid groups from squalid tent camps to downtown apartments, are back to living beneath tarps or staying with friends.


One of them is Jean-Louis Wilner, a 32-year-old father of a two-year-old boy. After a couple of years living in a tent camp, he thought he had finally made it. He had a subsidized rental apartment for a year and a small business selling cold drinks. Now Wilner wonders if he'll make it through the hurricane season. Like others, he claims his possessions were either lost beneath rubble or stolen by thieves when he rushed items out into the street.


"This country doesn't respect human beings. I'm worse off than after the earthquake. It's humiliating," Wilner says.


Opposition politicians say they plan to mobilize the newly displaced families in street protests against Martelly's government.


"They only give them a warning of a few minutes and then they start bulldozing? I consider that a crime. These families have nowhere to go and are now homeless again," said Sen. Moise Jean-Charles, a staunch opponent of Martelly.


Government officials say communication about the demolitions could have been better and contend that some building owners who were notified did not tell their tenants of the coming bulldozers.


Public notary Jean-Henry Ceant, who is helping people with their claims, says owners of buildings with proof of their investments are being quickly compensated. But that's a tall order in Haiti, where the land registry is in shambles and it's not always clear who owns what.


Renters are also being compensated, but only the few who can prove they lived in their now-demolished homes for about a decade and paid their utility bills, the head of the agency overseeing the project said.


"If you can bring proof with receipts that you paid the electricity, you paid the water — if you bring that and you have them for like 15, 10 years — then we'll consider that we're going to pay you," Adam said in English.


For now, it's hard to see the promised shiny, orderly city center arising amid the cracked streets, where steel reinforcing bars twist out of the rubble and are a prized commodity for scavengers. The hope is to consolidate all the government ministries on elegant boulevards and revive a business district that was already dying before the quake.


Evidence of the reconstruction is evident in the skeleton frames of a few new ministry buildings. Most of the work has been funded so far through debt relief money and Venezuela's Petrocaribe fuel program. Authorities declined to provide a total estimate, but the first phase of construction is expected to cost $150 million.


Richard Morse, manager of the storied Hotel Oloffson, which Graham Greene immortalized in his novel "The Comedians," asserts the government's vision of a new capital city is dishonest. The hotelier is a first cousin to Martelly and worked as his special envoy to Washington before quitting early last year over what he says is "outright corruption" in the government.


"They're just trying to pour as much cement as possible in order to get as many kickbacks as possible. They're not really fixing anything," Morse said at the three-story gingerbread hotel not far from the razed blocks.


Adam, the government official, insists the ambitious rebuilding program will transform downtown Port-au-Prince if the country has success drumming up the money year after year.


"We have to rebuild better," he said. "But it will cost a lot."


For some Port-au-Prince residents, the message of renewal is powerful.


"I would love for my city to have a different image. I want a Port-au-Prince like New York, Miami, Canada," off-duty policeman Evens Simon said as he gazed up at construction workers on scaffolding.



Imax, Shanghai Film to open 19 screens in China


Imax and China's biggest state-owned film exhibitor are teaming up to open 19 giant screen cinemas in the world's No. 2 movie market.


Imax Corp. and Shanghai Film Corp. said Tuesday that a "significant number" of the theaters will open before the end of 2015.


No financial terms were disclosed. Shanghai Film already operates three Chinese Imax theatres.


Box office revenues in China surged 27 percent last year to $3.6 billion, making the country a crucial market for international film companies.


The deal comes a year after Imax partnered with another Chinese company, Wanda Cinema, to open up to 120 of the Canadian company's theatres.


At the end of 2013, Imax had 173 cinemas in China and plans for 230 more by 2021, according to its latest annual report.



Business park plan upsets some in Olive Branch


Olive Branch residents who live near a proposed business park are working to derail the project.


Cows now graze on the land just east of the city limits. The Commercial Appeal (http://bit.ly/1p6hF5s ) reports that developers are trying to get the property rezoned.


Area residents worried about safety, traffic and other potential changes spent the weekend gathering signatures on petitions opposed to the change.


They plan to present them to the Board of Supervisors, which scheduled to hear the rezoning application Monday morning in Hernando.


Elaine Adams has been drumming up opposition to the project through personal contacts and on Facebook.


She says increased trucking would be dangerous in the area where school buses bring Center Hill and teens drive to school.



Newell Rubbermaid to buy water bottle maker


Newell Rubbermaid said Monday that it plans to buy a maker of reusable water bottles and travel mugs for about $308 million as it seeks to expand into different product categories.


The consumer products company said it is buying the company, Ignite Holdings, from private equity firm North Castle Partners. Ignite makes bottles and mugs under the Contigo and Avex brands.


Newell Rubbermaid said the acquisition, which is expected to close by the third quarter, will add $125 million of revenue to its business this year.


The Atlanta-based company makes Rubbermaid food containers, Calphalon pots and pans, Sharpie markers and other products.


It said it plans to invest money to expand the Contigo and Avex brands.


Shares of Newell Rubbermaid Inc. slipped 14 cents to $31.21 in morning trading Monday.



Expert says Detroit bankruptcy plan is feasible


An expert hired to advise Detroit's bankruptcy judge says the city's plan to get out of Chapter 9 is feasible but there still are many challenges.


Marti Kopacz says the city's computer system "is so broken" that it threatens to thwart Detroit from meeting its commitments. She says it reflects a lack of money and long-term leadership in information technology.


Detroit is planning to make major changes.


Kopacz says the bankruptcy has focused on reducing Detroit's billions in long-term debt. But she says there's no firm financial source for more than $1 billion in future improvements touted by emergency manager Kevyn Orr.


Federal Judge Steven Rhodes hired Kopacz, who's based in Boston and has participated in hundreds of financial restructurings.


Her 207-page report was released Monday.



US companies report rising sales, employment in 2Q


Rising sales helped boost hiring and wages at U.S. businesses in the second quarter, and companies are optimistic that the trends will continue this fall, according to a new survey by the National Association for Business Economics.


Fifty-seven percent of the 85 respondents to the quarterly survey said sales at their companies rose in the April-June period. That was up from 53 percent in the first quarter and 35 percent in the same period a year ago. Just 5 percent of firms said sales fell during the second quarter.


Respondents also said the outlook for the July-October period is strong. Fifty-nine percent of respondents said they expect sales to increase during the third quarter, and just 1 percent expects sales to decline. Respondents from the finance, insurance and real estate sector were most optimistic about sales increases, while the service sector lagged.


As sales picked up, so did hiring. Thirty-six percent of firms said they hired more workers during the second quarter, up from 28 percent in the first quarter and 29 percent in the second quarter of 2013.


The employment outlook was steady, with 37 percent of respondents expecting their companies to hire more workers in the July-October period. Finance, insurance and real estate companies were most likely to say they expect employment increases, at 48 percent; service companies were the least likely, at 28 percent. Less than 10 percent of respondents expect employment declines in the third quarter.


For the first time since October 2012, no respondents reported falling wages. Forty-three percent said their firms raised wages during the second quarter, which was than double the share that reported raising wages during the same time period a year ago. More than one-third of respondents — 35 percent — expected wages to continue to increase in the third quarter.


Hiring and wage increases hit companies' profits. Just 27 percent of respondents said their firms' profit margins rose in the second quarter, down from 32 percent in the first quarter. Despite the slowdown, manufacturers and financial companies both said they expect margins to grow at a faster pace in the third quarter.


Some companies improved their margins by raising prices. Twenty-five percent of respondents said their businesses raised prices in the second quarter, up from 20 percent in the two previous quarters. Eight percent said prices fell, up from 3 percent in the first quarter.


Technology and communications companies and manufacturers said prices were up during the quarter, while service companies and finance companies said prices were softer. Nearly three-quarters of respondents expect no change in the prices their firms will charge in the third quarter.


The quarterly survey by NABE is intended to gauge business conditions at members' firms or industries. Almost half the respondents are from companies with more than 1,000 employees.



Assessors want new valuation rules for oil wells


A group of Louisiana tax assessors is advocating for a series of property valuation changes that, if approved, could significantly increase property tax rates for oil and gas well operators, as well as revenues for local governments.


The proposed rules come from the Louisiana Assessors' Association and were introduced at a Louisiana Tax Commission hearing July 8.


The LAA's Oil and Gas Committee chairman, Robert Gravolet of Plaquemines Parish, tells New Orleans CityBusiness (http://bit.ly/1ruOXyj ) property values for well sites have historically not been assessed correctly.


The Louisiana MidContinent Oil and Gas Association wants the property tax structure and valuation system to remain the same but is withholding any official opposition until the official rebuttal hearing before the Louisiana Tax Commission on Aug. 6.



Information from: New Orleans CityBusiness, http://bit.ly/1gDTMhn


New Orleans putting smoked butts in a better place


In New Orleans, discarded butts are being turned into something useful.


The first of 50 cigarette butt recycling receptacles was installed at a downtown intersection Monday. Developers of the program say New Orleans is the first U.S. city to participate in a large-scale recycling effort launched in Canada last year.


Trenton, New Jersey- based recycling company TerraCycle Inc. developed the program in 2012. The first citywide receptacles were placed in Vancouver, British Columbia, in November 2013.


"Globally we have collected 25 million butts since November of 2012," said company spokesman Albe Zakes, adding that the company is in talks with officials in Toronto, Sydney, Tokyo, Phoenix and Atlantic City, New Jersey.


Officials with the New Orleans Downtown Development District said joining the program was a no-brainer. Smokers flock to curbside trash bins and public benches for nicotine fixes, and smoking is still allowed in bars that do not serve food. The downtown area is just blocks from the French Quarter and is home to the huge Harrah's Casino.


That adds up to a lot of cigarette butts.


District president and CEO Kurt Weigle said a one-day sweep in 2011 turned up nearly 7,000 cigarette butts downtown.


According to TerraCycle, New Orleans will be paid $4 for each pound of cigarette waste collected.


The organic materials, such as tobacco and paper, are composted.


Cigarette filters, though they look and feel like fiber, are made of cellulose acetate, a plastic. Once collected, they are shredded and bio-toxins removed with the use of gamma radiation, Zakes said.


"It's the same exact process used on fish and other meats to assure there are no bio-contaminants, so it is very safe," Zakes said.


The filters are then melted into plastic pellets for industrial use in the same way a plastic bottle would be recycled, Zakes said.


"We only use the pellets for industrial applications, such as plastic lumber and plastic shipping pallets," he said. "We don't make any consumer products from this material, mostly because of the stigma around butts."


Outside a patio bar and restaurant about a block from where the first receptacle was installed Monday, 23-year-old Ryan Schumacher puffed on a cigarette and said the receptacles may help break some "bad habits." Schumacher said he's among many smokers guilty of throwing cigarette butts on the ground.


"I'm happy that we have somewhere to put our cigarette butts now," he said, but added that there will be smokers who just don't care. "There's still going to be the people who are stubborn about it and just throw it on the ground because that's what they're used to doing."


Weigle said he is hopeful the receptacles will get used to help keep downtown clean, improve the quality of life for residents and visitors alike and promote environmental awareness.


"That's something that's important to us and our stakeholders, so every chance we get to become a greener downtown, we grasp it," he said.



Former Bank of America worker sentenced for fraud


A former Bank of America employee was sentenced Monday to 2 ½ years in federal prison for taking more than $1.2 million in bribes, the U.S. Attorney's Office in Los Angeles said.


Kevin Lauricella, 29, of Thousand Oaks was also ordered to pay $5.7 million in restitution to Bank of America and forfeit the home that he bought with some of the bribe money, prosecutors said.


Lauricella used his position to approve fraudulent short sales, resulting in at least $5.7 million in bank losses, officials said.


Lauricella pleaded guilty in January to receiving bribes and making false entries in the bank's books and records. He worked for Bank of America in 2010 and 2011 and was responsible for negotiating short-sale transactions, which occur when a lender allows a property to be sold for less than the existing loan balance.


Prosecuting attorney Ranee Katzenstein said the Lauricella case is part of a larger probe and that investigators are looking into the parties that offered Lauricella the bribes in exchange for approving short sales.


Short sales are usually done because the borrower can no longer make the payments due on the loan or because the value of the property has dropped below the amount due on the loan.


Lauricella used his position to approve short sales that were far below the fair-market value of the properties and that he was not authorized to approve, Katzenstein said.


Lauricella's lawyer did not immediately reply to a phone message seeking comment.



What They’re Saying: President Obama Signs Executive Order on LGBT Workplace Equality

Earlier today, President Obama signed an Executive Order that prohibits federal contractors from discriminating on the basis of sexual orientation or gender identity. The Order also ensures that federal employees – who are already protected on the basis of sexual orientation – will now formally be protected from discrimination based on gender identity as well.


In response to the President's actions today, many national organizations dedicated to LGBT equality, civil rights, and religious freedom expressed their support.


Anthony Romero, Executive Director, ACLU:


This is one of the most important actions ever taken by a president to eradicate LGBT discrimination from America's workplaces. By signing this order, President Obama is building on a bipartisan tradition, dating back over 70 years, of barring discrimination without exception when taxpayer dollars are involved.


Barry Curtiss-Lusher, National Chair, and Abraham Foxman, National Director, Anti-Defamation League:


For nearly 50 years it has been illegal for federal contractors to discriminate in employment decisions on the basis of race, color, religion, sex, or national origin. This action by President Obama continues his historic leadership in promoting LGBT rights and equality and moves our nation closer to full equality in the workplace.


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World stocks slide as pressure on Russia grows


Asian stock markets were mostly higher Monday as anxiety over the downing of a Malaysian jetliner over Ukraine eased and investors shifted their focus to U.S. corporate earnings.


Oil declined to near $103 per barrel as concern about Thursday's disaster that roiled markets last week faded.


Seoul's Kospi gained 0.1 percent to 2,021.82 ahead of this week's release of quarterly economic growth data. Sydney's S&P/ASX 200 added 0.2 percent to 5,542.20. Hong Kong, Taipei and Singapore also rose.


China's benchmark Shanghai Composite Index bucked the regional trend, shedding 0.3 percent to 2,052.94. Tokyo was closed for a holiday.


"The market tone is evidently calmer," said Credit Agricole CIB in a report.


The shooting down of the Malaysia Airlines plane with 283 passengers and 15 crew aboard rattled markets, which worried about how Western governments might react. Most recovered Friday but Russian stocks also were hurt by Washington's announcement Wednesday of new sanctions on individuals and companies in an effort to increase pressure to end the insurgency in eastern Ukraine.


"Investors doubted a strong retaliation from the international community over the downing of MH17 and refocused on earnings in the U.S. instead," said Desmond Chua of CMC Markets in a report.


Hong Kong's Hang Seng rose less than 0.1 percent to 23,462.18. Taiwan's Taiex added 0.5 percent to 9,443.82.


Investors were looking ahead to U.S. earnings reports amid hopes American economic growth is recovering. Results from Apple, Microsoft and Coca Cola were due out Tuesday and Caterpillar on Thursday.


Jakarta rose 0.6 percent despite tensions over presidential election results due out Tuesday, with both candidates claiming victory. The country has been hurt by weak commodity prices.


Even if the election result is clear cut, "investors will increasingly realize that there have yet to be any concrete signs that growth will be revived in the short term," said Ryan Huang, a strategist for IG Markets, in a report.


In energy markets, U.S. benchmark crude for August delivery was down 11 cents to $103.02 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 6 cents on Friday to close at $103.13.


The euro rose to $1.3537 from $1.3525 late Friday. The dollar fell to 101.23 yen from 101.36 yen.



US stocks open lower as more earnings roll in


Stocks are opening lower as more U.S. companies turn in their quarterly results and as investors worry about tensions with Russia over the downed airliner in Ukraine.


Hasbro fell 2 percent in early trading Monday after the toy maker reported second-quarter earnings and revenue that fell short of analysts' targets.


The Standard & Poor's 500 index fell five points, or 0.2 percent, to 1,972.


The Dow Jones industrial average lost 56 points, or 0.4 percent, to 17,036. The Nasdaq composite slid four points, or 0.1 percent, to 4,426.


European markets also fell. Germany's DAX sank 1.1 percent and France's CAC-40 lost 0.7 percent.


Bond prices rose. The yield on the 10-year Treasury note fell to 2.47 percent.



US Treasury bill rates mixed at weekly auction


Interest rates on short-term Treasury bills were mixed in Monday's auction with three-month bills unchanged and six-month bills dropping to their lowest level in three weeks.


The Treasury Department auctioned $26 billion in three-month bills at a discount rate of 0.025 percent, unchanged from last week. Another $24 billion in six-month bills was auctioned at a discount rate of 0.055 percent, down from 0.060 percent last week.


The six-month rate was the lowest since those bills stood at 0.050 percent on June 23.


The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,999.37 while a six-month bill sold for $9,997.22. That would equal an annualized rate of 0.025 percent for the three-month bills and 0.056 percent for the six-month bills.


Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, was 0.11 percent last week, unchanged from the previous week.



Express says Michael Weiss will retire as CEO


Clothing and accessories chain Express Inc. said Monday that Michael Weiss will retire as CEO on Jan. 30.


David Kornberg, the Columbus, Ohio, company's president, will replace Weiss.


Weiss was the CEO of Express from 1997 to 2004, and he returned to the company in July 2007. He is also chairman of the company and will become non-executive chairman after he retires as CEO.


Kornberg has been Express' president since October 2012. He will join the board of directors when he becomes CEO.



Star Wars Car, a Doomsday doll: Toys of Comic-Con

The Associated Press



When it comes to designing the highly coveted collectible toys for sale at Comic-Con, the annual celebration of pop culture lifting off Thursday in San Diego, the sky's the limit for the designers at Mattel. Fittingly, the building where Mattel's dreamers conceive of their limited-edition playthings is just down the street from the Los Angeles International Airport.


Inside the colorful design center — a Hot Wheels-themed shuttle bus transports employees from Mattel's parking garage — the designers have spent the past year working on 10 toys created especially for the Comic-Con crowd, including a replica of the Batmobile from the game "Batman: Arkham Knight" and a 9-inch-tall action figure of Superman killer Doomsday.


"It's one of the coolest things we do," said Doug Wadleigh, Mattel's senior vice president of global brand marketing for boys and entertainment. "We don't have to worry about retail. We don't have to worry about margins. We don't have to worry about operational efficiencies. We only have to worry about creating the coolest toys for our fans. Period."


Because the toys aren't intended to be sold in stores, only in small quantities on the Comic-Con show floor and on Mattel's collectors' site, Mattel designers are encouraged to employ premium materials and create over-the-top packaging. Mattel's exclusives this year run between $20 and $85, but the elite toys can fetch much more when they're put up for auction.


The crown jewel for Wadleigh and his team this year is a Darth Vader die-cast car, the first official collaboration from Hot Wheels and the "Star Wars" franchise. The car — imagine if a Chevrolet Corvette C5 and the villainous Sith lord's helmet had a baby — comes in a sleek black box and encased in a replica of Vader's lightsaber, complete with a swooshing sound effect.


"We've been trying to partner with Lucasfilm and Disney on this property for a long time," said Wadleigh. "It took us time to get them to understand how Hot Wheels and 'Star Wars' could be married together to create a unique opportunity within the vehicle space. It blows me away to finally see it come to life in such a beautiful form. It's gorgeous."


Wadleigh isn't exaggerating about the toy car coming to life. A full-size working replica of the Vadermobile will be on display at Mattel's booth at the massive San Diego Convention Center. The vehicle is capable of going up to 80 miles per hour, and the dashboard inside will resemble the interior of Darth Vader's helmet. Yes, it will emit his breathing sounds, too.


Comic-Con will be the first place that fans can see the initial line-up of "Star Wars" Hot Wheels. The first set is modeled after such classic characters as Han Solo, Yoda, R2-D2 and Chewbacca. If sketches on display inside the Mattel design center are any indication, rides based on Princess Leia, Jabba the Hutt and the new "Star Wars Rebels" characters are being tinkered on.


"There's a lot of thought that goes on behind the scenes on how we select what type of car goes with which character," said Bryan Benedict, the designer behind the "Star Wars" autos. "It's not just about what the character looks like but who the character is and their personality traits. The Darth car, and this is reflected in the full-size build, is really a timeless looking car."


Several other toy makers and publishers are also pushing collectible toys and books at the convention. The line-up from Mattel rival Hasbro this year includes a set of Marvel superhero figures that comes with a wearable foam Infinity Gauntlet, a box of Transformers figures depicting the 'bots as rock stars and a giant foam replica axe from "Magic: The Gathering."



Follow AP Entertainment Writer Derrik J. Lang at http://bit.ly/M4KQ9i


Companies file export application for gas project


The companies pursuing a major liquefied natural gas project in Alaska have applied for an export license with the U.S. Department of Energy.


The application requests authorization to export up to 20 million metric tons of liquefied natural gas a year for 30 years.


Participants in the project include BP, ConocoPhillips, ExxonMobil Corp., TransCanada Corp. and the Alaska Gasline Development Corp., or AGDC.


TransCanada owns the state's interest in the pipeline and gas treatment plant, with the state having an option to buy some of that back as the project progresses. AGDC holds the state's interests in liquefaction facilities.



Business Highlights


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Microsoft makes design central to its future


Before Ralf Groene helped devise the look and feel of Microsoft's Surface tablet, he designed food — or "food concepts," he says, such as dried noodles that come wrapped around a pair of chopsticks and a fork that squeezes out sauce.


Though none of these ideas made it into production, the principles behind them can be applied to computing devices that fit into busy lives, says Groene, and they are just as varied as the ones Microsoft now uses to redesign all its software and devices.


Microsoft is putting an emphasis on design excellence more than ever — to make its products more competitive with offerings from rivals Apple, Google, and Amazon and to prod its hardware making partners to dream up new, more innovative devices. In recent years, the software giant has put a priority on fashioning devices that work around people's lives, help reduce information overload and become intimate, personal and knowledgeable about their users.


And yes, Microsoft is even trying to make devices attractive, cool and desirable, top executives say.


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Pain of Atlantic City casino closings far-reaching


ATLANTIC CITY, N.J. (AP) — Yomary Blanco cleans rooms at Trump Plaza, one of three Atlantic City casinos that could shut down by September. Her husband works the buffet at the Showboat, which is scheduled to close on Aug. 31.


With two young daughters, a mortgage, no savings and no obvious plan B, the couple is afraid of what the future holds.


The pain of a sudden spasm of casino contraction in what was once the nation's second-largest gambling market will hurt not only families like Blanco's. It will also hurt small businesses, the housing market could suffer, and taxes could rise and services decline in Atlantic City, where 60 percent of the budget comes from casino taxes.


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Allergan to cut 1,500 employees in restructuring


Botox maker Allergan will cut about 13 percent of its workforce as part of a push to become more efficient while it fights a hostile takeover bid from Valeant Pharmaceuticals.


The Irvine, California, company said Monday it plans to trim about 1,500 employees and around 250 vacant positions as it restructures to focus on its "highest value opportunities."


Allergan said its restructuring will yield annual pretax savings of about $475 million in 2015. It announced the cuts the same day it said second-quarter results trumped analyst expectations, as earnings grew 16 percent to $417.2 million.


Allergan Inc. has rejected several takeover attempts from Valeant Pharmaceuticals International Inc. and activist investor Bill Ackman's Pershing Square Capital Management. The latest amounts to about $53 billion in cash and stock.


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McDonald's, KFC in China face new food scandal


BEIJING (AP) — McDonald's and KFC in China faced a new food safety scare Monday after a Shanghai television station reported a supplier sold them expired beef and chicken.


The companies said they immediately stopped using meat from the supplier, Husi Food Co., Ltd. The Shanghai office of China's food and drug agency said it was investigating and told customers to suspend use of the supplier's products.


Dragon TV said Sunday that Husi, owned by OSI Group of Aurora, Illinois, repackaged old beef and chicken and put new expiration dates on them. It said they were sold to McDonald's, KFC and Pizza Hut restaurants.


The report added to a series of food safety scares in China that have battered public confidence in dairies, fast food outlets and other suppliers.


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Thirst for US craft beer grows overseas


RICHMOND, Va. (AP) — Helping to quench a growing thirst for American craft beer overseas, some of the United States' largest craft breweries are setting up shop in Europe, challenging the very beers that inspired them on their home turfs.


It's the latest phenomenon in the flourishing craft beer industry, which got its start emulating the European brews that defined many of the beer styles we drink today. The move also marks a continuing departure from the status quo of mass market lagers or stouts, demonstrating a willingness of American breweries to explore — and innovate — old world beer styles from Belgium, Germany and the United Kingdom.


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Star Wars Car, a Doomsday doll: Toys of Comic-Con


LOS ANGELES (AP) — Mattel designers have spent the past year working on 10 toys created especially for the crowd at Comic-Con, the annual celebration of pop culture lifting off Thursday in San Diego.


Their efforts at limited-edition playthings include a replica of the Batmobile from the upcoming game "Batman: Arkham Knight" and a 9-inch-tall action figure of Superman killer Doomsday.


Like other toy makers struggling in this digital, video-centric age, the company is trying to remain relevant in the retail world as demand drops for core brands like Barbie.


But things will at least seem rosier at Comic-Con, where eager buyers for the toys await (the only other place they will be sold is on the Mattel collector's site). Mattel's exclusives this year run between $20 and $85, but elite toys can fetch much more when they're put up for auction.


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Shark sightings off Cape Cod a boon for tourism


CHATHAM, Mass. (AP) — Great white sharks are having an unusual effect on Cape Cod this summer, and many a merchant is going to need a bigger wallet.


The sharks being spotted in growing numbers are stirring curiosity and a buying frenzy for shark-related merchandise.


Shark T-shirts are everywhere, "Jaws" has been playing in local movie theaters and boats are taking more tourists out to see the huge seal population that keeps the sharks coming. Harbormasters have issued warnings but — unlike the sharks in the movies — the great whites generally are not seen as a threat to human swimmers.


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Russia's Severstal selling US plants for $2.3B


NEW YORK (AP) — Russian steel company Severstal is exiting the U.S. market, selling a pair of steel plants to AK Steel and Steel Dynamics for about $2.33 billion.


Word of a possible sale began to circulate earlier this year as the West threatened sanctions against Russia for its activity in the Ukraine, but Severstal has not among those companies targeted by those actions.


Steel Dynamics Inc. said Monday that it will pay about $1.63 billion for Severstal Columbus, which is located in northeast Mississippi. AK Steel Holding Corp. said that it is buying Severstal's steel plant in Dearborn, Michigan for $700 million.


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German supermarket tycoon Albrecht dead at 94


BERLIN (AP) — Karl Albrecht, co-founder of the Aldi grocery store empire and one of the world's richest people, has died in the western German city of Essen. He was 94.


Essen's city hall told The Associated Press that Albrecht was buried Monday in a family plot in a small ceremony in the city's Bredeney district where he lived. Aldi's press office said Albrecht died July 16.


Albrecht and his brother Theo, who died in 2010, both worked in their parents' grocery store as they were growing up.


After both serving as German soldiers in World War II, the two took over the business and began a rapid expansion. Today the group has thousands of stores in 17 countries in Europe, North America and Australia, and a family trust established by Theo Albrecht in 1979 bought the U.S. specialty grocery chain Trader Joe's.


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Netflix tops 50M subscribers as 2Q earnings soar


SAN FRANCISCO (AP) — Netflix's second-quarter earnings more than doubled as new episodes from one of its hit series helped the Internet video service surpass 50 million worldwide subscribers for the first time.


The gains announced Monday include an additional 570,000 U.S. subscribers, slightly more than Netflix's management predicted. The quarter is typically the company's slowest of the year, as people spend more time outdoors instead of watching video.


The second quarter featured one of Netflix's marquee attractions, "Orange Is The New Black," which returned for its second season in early June.


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By The Associated Press=


The Dow Jones Industrial average fell 48.45 points, or 0.3 percent, to 17,051.73. The Standard & Poor's 500 slipped 4.59 points, or 0.2 percent, to close at 1,973.63. The Nasdaq composite lost 7.44 points, or 0.2 percent, to 4,424.70.


Benchmark U.S. crude for August delivery rose $1.46 to $104.59 on the New York Mercantile Exchange. Brent crude for September delivery, a benchmark for international oils, gained 44 cents to $107.68 on the ICE exchange in London. Natural gas fell 10 cents to $3.85 per 1,000 cubic feet. Wholesale gasoline rose 3 cents to $2.89 a gallon. Heating oil gained 1 cent to $2.86 a gallon.



Six Flags 2Q profit rises 40 percent


Six Flags Entertainment Corp. (SIX) on Monday reported earnings that climbed by 40 percent in its second quarter. The results matched analysts' expectations.


The Grand Prairie, Texas-based company said earnings rose to $66.3 million, or 67 cents per share, from $47.4 million, or 47 cents per share, in the same quarter a year ago.


The amusement park operator said revenue increased 3.5 percent to $376.6 million from $363.7 million in the same quarter a year ago, and missed Wall Street forecasts. Analysts expected $396.6 million, according to Zacks Investment Research.


Six Flags shares have climbed $4.18, or 11 percent, to $41 since the beginning of the year. The stock has risen $5.15, or 14 percent, in the last 12 months.



UNIFIL chief says mission is a marathon, not a sprint


NAQOURA, Lebanon: The departing UNIFIL commander said Monday that while fears that the war in Gaza might extend to the Lebanese-Israeli border were legitimate, close coordination with the Lebanese Army should prevent escalation.


“We’re very concerned that the situation that is ongoing in Gaza can affect the situation in Lebanon but, on the other hand, we are working together with the Lebanese Army in order to try to avoid any escalation and any further launching of rockets [into Israel],” Maj. Gen. Paolo Serra told The Daily Star.


Unidentified militants launched salvoes of rockets from south Lebanon toward Israel on several occasions earlier this month, prompting retaliatory Israeli shelling of southern villages and augmenting tensions on a border that has generally been calm since the end of the 2006 summer war.


In an interview three days prior to handing over the United Nations Interim Force in Lebanon’s command to his successor, Italian Maj. Gen. Luciano Portolano, Serra accused “rogue elements” of being behind the rocket attacks, saying they were trying to drag Lebanon into the unknown. He saluted the efforts of Lebanese security forces to track down and arrest the perpetrators.


Despite growing extremism in the region and in Lebanon, Serra maintained that the peacekeeping force was not a target.


“We are here to support the local population, therefore we are not the target of any group or terrorist organization or activity,” he said. “Though I think that in case of escalation we would be able to react and defend ourselves.”


Serra said that keeping in close contact with Lebanese southerners and listening to their needs was the key to the success of his mission here. However, he firmly denied holding any contact with Hezbollah, the leading military force in south Lebanon, throughout his 30-month tenure.


Serra explained that UNIFIL maintained a “strategic partnership” with the Lebanese Army and did not engage in any political contacts, as these fell within the role of the United Nations Special Coordinator for Lebanon Derek Plumbly.


“When I meet with some authority on the ground – the mayor of a town, for example – the issue is not about which party stands behind him,” said the Italian commander. “I am dealing with the mayor because I know that the village needs some kind of support.”


Serra has concentrated UNIFIL’s efforts in three main areas – water, education and medical care – and described the response of local residents to humanitarian projects as “very favorable.”


“Our projects stem from the people’s needs,” he said. “UNIFIL tries to answer to the people’s demands with our means and capabilities.”


Serra’s new posting will be as military attaché to the head of Italy’s mission to the United Nations, a post he will use to continue to support the region – Lebanon in particular.


Serra said he fully trusted Portolano’s capabilities and vision for a better Lebanon.


“My advice to the incoming general was that [heading UNIFIL] is a marathon rather than a 100-meter sprint,” Serra said. “I told him that our work here is a long process and perseverance and [keeping] dialogue channels open are crucial.”


Serra underlined the importance of the meetings that UNIFIL arbitrates between the Lebanese and Israeli militaries, arguing they were essential to defusing tensions between the two sides.


“Tripartite meetings ... can really help stabilize and minimize the impact of violations,” he said.


He pointed to an incident in December when a Lebanese soldier opened fire on an Israeli patrol on the border, killing a soldier. In the immediate aftermath, the tripartite talks “helped avoid a big crisis,” he said. “This is just one small example.”


Without dialogue, Serra emphasized, any misunderstandings would be exacerbated.


“At least tripartite meetings enable both parties to draw a clear view and understanding,” he continued. “The importance of those talks is that you can disagree but you will learn about the point of view of the other side and you can build your position accordingly.”


Some things, however, cannot be talked through, and demand a political solution at a higher level.


The problematic border village of Ghajar, which has long been the subject of speculation, is one such issue.


In the wake of Israel’s 2000 withdrawal from southern Lebanon, the northern part of the village was considered by U.N. mapmakers to be Lebanese and the southern section part of Syria’s Golan Heights, which is occupied by Israel. The two halves were dissected by the Blue Line until Israel reoccupied northern Ghajar during the 2006 summer war.


Although U.N. Security Council Resolution 1701, which ended that round of hostilities, decreed that Israel must withdraw from northern Ghajar to south of the Blue Line, Israeli troops remain stationed there eight years later.


According to Serra, all UNIFIL is able to do as a peacekeeping force is preserve calm and stability in order to pave the way for politicians to tackle the issue and solve it.


“During tripartite meetings, we have military-to-military [talks] so [the issue] is well-above the capabilities of those dealing with tripartite issues,” Serra said.


“We need some kind of political engagement. ... Otherwise the [issue of Ghajar will remain frozen] until [parties] move towards a cease-fire, or long-lasting peace, something that can instil trust between the two parties,” Serra continued. “Maybe today it’s too early.”


This phrase appears to be key to Serra’s outlook on the situation and on what can and cannot be achieved in Lebanon’s troubled south, where he believes he and his team have done well to preserve calm despite the violence grappling the region.


“It would have been very nice to bring peace and prosperity,” he said, before repeating again, “but maybe it’s too early.”



UNIFIL chief says mission is a marathon, not a sprint


NAQOURA, Lebanon: The departing UNIFIL commander said Monday that while fears that the war in Gaza might extend to the Lebanese-Israeli border were legitimate, close coordination with the Lebanese Army should prevent escalation.


“We’re very concerned that the situation that is ongoing in Gaza can affect the situation in Lebanon but, on the other hand, we are working together with the Lebanese Army in order to try to avoid any escalation and any further launching of rockets [into Israel],” Maj. Gen. Paolo Serra told The Daily Star.


Unidentified militants launched salvoes of rockets from south Lebanon toward Israel on several occasions earlier this month, prompting retaliatory Israeli shelling of southern villages and augmenting tensions on a border that has generally been calm since the end of the 2006 summer war.


In an interview three days prior to handing over the United Nations Interim Force in Lebanon’s command to his successor, Italian Maj. Gen. Luciano Portolano, Serra accused “rogue elements” of being behind the rocket attacks, saying they were trying to drag Lebanon into the unknown. He saluted the efforts of Lebanese security forces to track down and arrest the perpetrators.


Despite growing extremism in the region and in Lebanon, Serra maintained that the peacekeeping force was not a target.


“We are here to support the local population, therefore we are not the target of any group or terrorist organization or activity,” he said. “Though I think that in case of escalation we would be able to react and defend ourselves.”


Serra said that keeping in close contact with Lebanese southerners and listening to their needs was the key to the success of his mission here. However, he firmly denied holding any contact with Hezbollah, the leading military force in south Lebanon, throughout his 30-month tenure.


Serra explained that UNIFIL maintained a “strategic partnership” with the Lebanese Army and did not engage in any political contacts, as these fell within the role of the United Nations Special Coordinator for Lebanon Derek Plumbly.


“When I meet with some authority on the ground – the mayor of a town, for example – the issue is not about which party stands behind him,” said the Italian commander. “I am dealing with the mayor because I know that the village needs some kind of support.”


Serra has concentrated UNIFIL’s efforts in three main areas – water, education and medical care – and described the response of local residents to humanitarian projects as “very favorable.”


“Our projects stem from the people’s needs,” he said. “UNIFIL tries to answer to the people’s demands with our means and capabilities.”


Serra’s new posting will be as military attaché to the head of Italy’s mission to the United Nations, a post he will use to continue to support the region – Lebanon in particular.


Serra said he fully trusted Portolano’s capabilities and vision for a better Lebanon.


“My advice to the incoming general was that [heading UNIFIL] is a marathon rather than a 100-meter sprint,” Serra said. “I told him that our work here is a long process and perseverance and [keeping] dialogue channels open are crucial.”


Serra underlined the importance of the meetings that UNIFIL arbitrates between the Lebanese and Israeli militaries, arguing they were essential to defusing tensions between the two sides.


“Tripartite meetings ... can really help stabilize and minimize the impact of violations,” he said.


He pointed to an incident in December when a Lebanese soldier opened fire on an Israeli patrol on the border, killing a soldier. In the immediate aftermath, the tripartite talks “helped avoid a big crisis,” he said. “This is just one small example.”


Without dialogue, Serra emphasized, any misunderstandings would be exacerbated.


“At least tripartite meetings enable both parties to draw a clear view and understanding,” he continued. “The importance of those talks is that you can disagree but you will learn about the point of view of the other side and you can build your position accordingly.”


Some things, however, cannot be talked through, and demand a political solution at a higher level.


The problematic border village of Ghajar, which has long been the subject of speculation, is one such issue.


In the wake of Israel’s 2000 withdrawal from southern Lebanon, the northern part of the village was considered by U.N. mapmakers to be Lebanese and the southern section part of Syria’s Golan Heights, which is occupied by Israel. The two halves were dissected by the Blue Line until Israel reoccupied northern Ghajar during the 2006 summer war.


Although U.N. Security Council Resolution 1701, which ended that round of hostilities, decreed that Israel must withdraw from northern Ghajar to south of the Blue Line, Israeli troops remain stationed there eight years later.


According to Serra, all UNIFIL is able to do as a peacekeeping force is preserve calm and stability in order to pave the way for politicians to tackle the issue and solve it.


“During tripartite meetings, we have military-to-military [talks] so [the issue] is well-above the capabilities of those dealing with tripartite issues,” Serra said.


“We need some kind of political engagement. ... Otherwise the [issue of Ghajar will remain frozen] until [parties] move towards a cease-fire, or long-lasting peace, something that can instil trust between the two parties,” Serra continued. “Maybe today it’s too early.”


This phrase appears to be key to Serra’s outlook on the situation and on what can and cannot be achieved in Lebanon’s troubled south, where he believes he and his team have done well to preserve calm despite the violence grappling the region.


“It would have been very nice to bring peace and prosperity,” he said, before repeating again, “but maybe it’s too early.”



LU dispute sets stage for heated Thursday Cabinet session


BEIRUT: A flurry of political consultations has so far failed to make any breakthrough in the thorny issues of the Lebanese University’s contract professors and extra-budgetary spending, ministerial sources said Monday, setting the stage for a heated Cabinet session this week.


Minister of State for Parliamentary Affairs Mohammad Fneish and Health Minister Wael Abu Faour met separately Monday with Prime Minister Tammam Salam at the Grand Serail as part of ongoing efforts to resolve the Cabinet dispute over the appointments of the LU’s council, an essential move for the approval of the employment of the university’s contract professors as full timers.


“There are no signs indicating a breakthrough in the dispute over the Lebanese University,” Fneish, one of two ministers representing Hezbollah in the Cabinet, told The Daily Star.


He blamed the other [March 14] side for blocking an agreement within the Cabinet on the LU issue. “Efforts are ongoing to resolve the dispute over the Lebanese University,” Fneish said, sounding pessimistic about finding a solution before the Cabinet session slated for Thursday.


He added that the solution to the problem of extra-budgetary spending to pay salaries of public sector employees at the end of the month lay with Parliament rather than with the Cabinet.


Abu Faour, who belongs to MP Walid Jumblatt’s parliamentary bloc, met Salam to discuss ways to break the LU deadlock threatening to cripple the government’s work. He did not speak to reporters after the meeting.


But a source close to Salam said no progress had been made.


“Abu Faour’s meeting with Salam was part of ongoing consultations to finda solution to the Cabinet deadlock over the LU’s council and the extra-budgetary spending. But no breakthrough has been made,” the source told The Daily Star.Ministerial sources said the passing of the LU decree would only be possible if Jumblatt’s bloc gave up on naming a dean to the Tourism Faculty in exchange for keeping Pierre Yared as the dean of the Faculty of Medicine.


Jumblatt is adamant that Yared, a Greek Catholic who is the current acting dean, remains in office. The dean of the Tourism Faculty is reserved for the Druze sect, while the dean of the Faculty of Medicine is a Maronite.


The Kataeb Party and MP Michel Aoun’s Free Patriotic Movement are both seeking to appoint a figure from their own party to the Faculty of Medicine.


Sources in the FPM said the party insisted on naming a figure to the Faculty of Medicine, a demand expected to further complicate the situation and delay discussion of the LU decree during the Cabinet session.


The LU decree includes two vital items to the university – appointing deans to the council and hiring contract professors as full-time lecturers. The ministers had initially agreed on the latter.


Finance Minister Ali Hasan Khalil, currently stuck in a row with the March 14 coalition over the legalization of extra-budgetary spending, met Monday with a delegation from the Future Movement lawmakers headed by MP Jammal Jarrah.


The meeting was part of the ongoing dialogue between the Future and Amal Movements to resolve key political issues, including the extra-budgetary spending and the public sector’s salary scale bill.


Khalil, from Speaker Nabih Berri’s parliamentary bloc, has said that Parliament should pass a law that would allow the required extra-budgetary spending to pay salaries of public sector employees at the end of this month.


In the face of Khalil’s insistence that the funds cannot be released without a law from Parliament, former Prime Minister Fouad Siniora, head of the Future bloc, argues that this is not necessary and that the current government can pay salaries as previous governments have done without resorting to the legislature.


Siniora renewed his rejection of the controversial wage hike bill for civil servants in the absence of solid revenues to fund the salary increases.


“The Future Movement publicly supports the approval of the salary scale bill for teachers and employees. ... But the problem that is blocking the achievement of this aim now is the absence of serious and reliable revenues that can cover the salary scale expenditures,” Siniora said after meeting with a delegation from the Coordination Union Committee, which represents civil servants and public and private school teachers.


Meanwhile, Siniora and Nader Hariri, head of former Prime Minister Saad Hariri’s office, met Kataeb Party leader and former President Amine Gemayel to brief him on Hariri’s road map to break the 2-month-old presidential stalemate.


The three discussed the deep crisis that has so far prevented the election of a president and the risks entailed by the vacancy in the presidency at the internal and external levels, according to a statement released by Gemayel’s office. “They agreed on the necessity of reviving state institutions and electing a president capable of confronting events and their repercussions.”


Gemayel and Jumblatt praised Hariri’s road map for giving priority to the presidential election.


Hariri’s “road map came at the right time to give a dose of momentum to the presidential election,” Gemayel said in remarks published by Al-Mustaqbal newspaper. He agreed with Hariri on the need to give “priority to the presidential election.”


In an interview with Al-Mustaqbal, Jumblatt said: “The presidency should come first [since] it is the path to address the country’s crises.”



Sabbagh supporters seek his release, warn against ‘persecuting’ Sunnis


TRIPOLI, Lebanon: Tripoli was on edge for a second day Monday following the arrest of a top militia leader and the killing of a terror suspect linked to the firing of rockets into Israel, security sources told The Daily Star.


Tensions ran high in Tripoli following Hussam al-Sabbagh’s arrest over the weekend, with supporters charging that the security clampdown that began in spring was only targeting Sunnis.


The Muslim Scholars Committee staged a sit-in outside Al-Siddiq Mosque facing Tripoli’s Governmental Serail Monday in protest against Sabbagh’s detention and the continued imprisonment of Tripoli militia commanders without trial.


The protesters brandished banners warning politicians and security officials against the consequences of “persecuting the Sunnis,” which they said “is pushing the group into engaging in an open-ended confrontation [with security forces].”


Future MP Mohammad Kabbara called for the immediate release of Sabbagh and for settling other arrests that have taken place in Tripoli, at a meeting of prominent figures from the city.


His call came a day after Justice Minister Ashraf Rifi acknowledged what he described as the rightful demands of families of Islamist prisoners held without trial, stressing, however, that any attempt to re-ignite violence in Tripoli would not be tolerated.


Sabbagh and other militia leaders in Lebanon’s second-largest city were arrested as part of a security crackdown that started there in April with the aim of ending years of violence linked to the Syrian war.


Speaking during an iftar banquet in Tripoli Sunday, hours after security forces arrested Sabbagh, a key leader of one of the militas involved in the Syria-linked clashes, Rifi said: “There will be no stepping back and no concessions on Tripoli’s security.”


“Let it be clear to all: we will not [allow] the clock to be set back. ... Tripoli’s security comes before all else,” said Rifi, a former Internal Security Forces chief who is close to the Future Movement.


In his iftar address, Rifi stressed that the government was seeking to consolidate Tripoli’s security and stability by reinforcing the security plan with economic development projects expected to be launched soon.


Meanwhile, a man killed in a weekend raid in Tripoli who was suspected of providing explosive belts to suicide bombers in Lebanon was laid to rest in his home village in Akkar Monday.


Monzer al-Hasan was buried in the village of Bzibina in north Lebanon amid tight security measures from the Lebanese Army, after a small funeral service.


Hasan was killed in an early morning raid by the Internal Security Forces Sunday at an apartment in an upmarket district of Tripoli where he was hiding.


Security forces believe Hasan provided explosive belts and material to a terrorist cell that was planning to carry out major attacks in Lebanon.


Late in June, a Saudi suicide bomber blew himself up at the capital’s Duroy Hotel during a raid by General Security personnel. A would-be suicide bomber survived the blast and is undergoing interrogation. Hasan is suspected of being the main supplier of the two Saudi bombers.


The authorities arrested two men after the funeral in Beddawi, a suburb of Tripoli. The men were Ali Deeb and Tarek al-Hasan, a relative of the terror suspect.


Meanwhile, the military apprehended a man at the Beirut Rafik Hariri International Airport suspected of having a role in one of the rocket attacks on Israel earlier this month, a security source told The Daily Star.


The Lebanese man, identified as Ziad Affara from Sidon, is suspected of having assisted Hussein Atwe in firing two rockets from the Khreibeh area in the Arkoub region.


The Army has arrested Atwe, who belongs to Al-Jamaa al-Islamiya and confessed to firing rockets at Israel from the Hasbaya village of Mari earlier this month.


Atwe has reportedly said that his move was in retaliation for Israel’s aggression on Gaza.


Militants have launched salvoes of rockets from Lebanese territory toward Israel on several occasions following the start of Israel’s aggression on Gaza last week, prompting Israeli retaliatory shelling of Lebanese villages.


The Army has also arrested two Palestinians for transporting rockets to the launch site on July 13 and 14.


The incidents have raised tensions along the Lebanese-Israeli border, which has been relatively calm since the 2006 war with Israel.


Meanwhile, in Lebanon’s eastern mountains on the border with Syria, Hezbollah and the Syrian regime continued firing artillery and rockets at suspected rebel locations in the area, security sources told The Daily Star.


The light barrages persisted throughout the day, amid a decline in Syrian regime airstrikes over the last few days, the sources said.


The Lebanese Army also intensified security measures in the region, reinforcing positions it had taken over the weekend and deploying to new ones as a counter-measure to possible infiltration by rebels through the porous border.


The Army deployed in villages in the northeast over the weekend after security forces reportedly foiled a major terrorist attack in the country.


In another security development, the ISF freed a Syrian national who had been kidnapped by a gang in Wadi Khaled, and arrested the group’s leader.


Mohammad Shatat, who owns a chocolate factory, was tricked into going to a meeting Thursday in Wadi Khaled by kidnappers posing as businessmen. He was then kidnapped using a rented car and was “shot and tortured,” the ISF said.


The Lebanese head of the gang, identified as A.K., 28, confessed to kidnapping Shatat and asking his family to pay a ransom in cash. He revealed the names of his partners in the crime, who are still on the run, according to the statement. – Additional reporting by Mohammed Zaatari and Rakan al-Fakih



Nasrallah: Hezbollah will stand by resistance in Gaza


BEIRUT: Hezbollah leader Sayyed Hasan Nasrallah vowed that his party would stand by the resistance in Gaza during a telephone conversation with Hamas and Islamic Jihad leaders.


Nasrallah voiced his party’s readiness to cooperate with both Palestinian resistance parties which have been confronting Israeli aggression on the Gaza Strip for the past 14 days. The Israeli offensive has killed nearly 500 Palestinians, the vast majority of them civilians.


“Hezbollah and the Lebanese resistance will stand by the Palestinian people’s uprising and resistance in our heart, willpower, hope and destiny,” Nasrallah said in a late-night telephone call to Hamas chief Khaled Meshaal, a Hezbollah statement said Monday.


Nasrallah also expressed Hezbollah’s support for Hamas’ “rightful demands to end the current battle.”


The statement said Meshaal assured Nasrallah that the Palestinian resistance “will remain steadfast and make a second victory in July, God willing,” in reference to Hezbollah’s proclaimed victory against Israel in Summer 2006 War.


Nasrallah warned Israeli Prime Minister Benjamin Netanyahu that the Palestinian resistance was stronger than he thinks.


“If Netanyahu is counting on governmental and international support in his [Gaza] offensive, the resistance in Gaza relies by all means on the strongest popular support,” Nasrallah said.


The statement said the Hezbollah chief also discussed developments on the battleground in Gaza in a telephone call with Ramadan Abdullah Shalah, the leader of the Palestinian Islamic Jihad.


Nasrallah stressed both “Hezbollah’s and the Islamic resistance in Lebanon’s support for the resistance in Gaza,” the statement added.


Nasrallah is scheduled to make a public address this Friday on Jerusalem Day.


“In light of Jerusalem Day, which was announced by Iran’s Supreme Leader Ayatollah Ali Khamenei to mark the last week of Ramadan, and our insistence on the resistance path and struggle to liberate Palestine from the sea to the river, Hezbollah will hold a ceremony” in which Nasrallah will speak, the party’s office said.


The event will take place in Sayyed al-Shuhada Complex in Beirut’s southern suburbs at 5 p.m.



Hariri slams Christian Gathering criticism



BEIRUT: Former Prime Minister Saad Hariri Monday hit back at critics of his road map to break the presidential deadlock, accusing the Christian Gathering of intentionally misrepresenting his initiative.


After the Christian Gathering issued a statement calling Hariri’s plan an attack on the national pact, Hariri’s office said the group had “deliberately distorted” the former premier’s words.


“The Press Office noticed with great regret that those who prepared the aforementioned statement exerted great efforts to convey an incorrect reading of the speech of Premier Hariri, that deliberately distorted its noble purposes and overanalyzed intentions that don’t even exist,” the statement said.


It added that the Christian Gathering’s statement aimed at “taking the political dialogue in the country to new levels of complexity, in order to maintain the current situation and reject any progress toward finding a possible way out of the continuous vacancy in the presidency.”


The Christian Gathering – a group of businessmen, politicians and Greek Orthodox clerics – had blasted Hariri for rejecting MP Michel Aoun’s controversial proposal to have the Lebanese public elect the president instead of relying on MPs.


In his speech Friday during which he presented a road map to safeguard Lebanon, Hariri said that Aoun’s proposal would make the presidency a hostage “of sectarian voting” and endangered parity between Muslims and Christians.


The Christian Gathering said Hariri’s remarks were dangerous, hoping they were not made on purpose, as they represented a coup on the National Pact through subjecting the election of a president to foreign interference.


The group redoubled their support for Aoun’s initiative in their statement Monday. “The proposal to elect a president directly by the people in two phases eliminates these dangers and ensures the holding of presidential election without any foreign interference or internal manipulation.”


Hariri’s press office said it refused “to engage in arguments that intend to flood the political dialogue with fabricated, controversial issues, which would cover up the real problems and dangers facing the country.”


“It considers that the road map announced by Premier Hariri is clear enough and does not need any exceptional effort in analyzing the texts and intentions.”



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Senate panel: Banks helped hedge funds skirt taxes

McClatchy Newspapers



Two giant global banks helped at least a dozen hedge funds skirt full tax payment on more than $100 billion worth of stock trades, according to a new congressional investigation made public Monday.


The probe by the Senate Permanent Subcommittee on Investigations will be the subject of a daylong hearing on Tuesday and also spells more trouble for the embattled Internal Revenue Service.


At issue is whether complex financial deals arranged by London-based Barclays Bank PLC and Germany’s Deutsche Bank AG deliberately helped hedge funds skirt U.S. tax laws for financial advantage and bend rules designed to protect the financial system from excessive borrowing to finance speculative bets.


The IRS in 2010 issued a warning against the financial instruments at question in the Senate probe, but roughly four years later, no additional tax money has been collected from the hedge funds involved, Senate investigators said.


Hedge funds are private investment vehicles for uber-wealthy investors, and their steep costs to join effectively lock out ordinary Americans. They are often partnerships, whose investors are partners who reap the tax savings afforded by the scheme.


The Senate report alleges that Deutsche Bank and Barclays conspired with the hedge funds to create a complex investment vehicle that gave the appearance of being a brokerage account like those used by ordinary Americans who play the stock market.


The difference, however, is that these accounts, called “basket options,” involved billions of dollars in rapid and constant computerized trading. The hedge funds, the report said, were taking short-term profits but being taxed as if they were ordinary investors holding stocks for a year or longer. They were taxed at a rate of 15 percent to 20 percent instead of the rate of ordinary income, which is as high as 39 percent.


In a news conference detailing the complex scheme, Committee Chairman Carl Levin, D-Mich., said the banks and a number of hedge funds established “sort of an alternative universe” in which there were large volumes of trading taking place in minutes, days and months. Most transactions happened in six months or less, but the profits were treated as if the hedge funds were holding the securities for periods of a year or more_ long enough to claim the lower tax rate for capital gains.


The scheme took place from 1998 to 2013, according to congressional investigators, and came even as the two banks were being investigated for other wrongdoing.


Deutsche Bank was already under a non-prosecution agreement with the Justice Department on other matters, and Barclays was under investigation by U.S. and British regulators for what later was shown to be manipulation of the London Interbank Offered Rate. LIBOR is a key global lending rate that sets the lending rate for many U.S. mortgages and car loans.


Although more than a dozen hedge funds were known to have used at least 199 “basket options,” the Senate panel narrowly looked at two of the largest funds _ Renaissance Technology Corp. LLC and George Weiss Associates.


Other hedge funds that purchased “basket options” from the two banks are Ballentine Capital Management, Deephaven Capital Management, SAC Capital Advisors, Talon Capital LLC, Provident Advisors LLC, MFT Limited, Analytic Investors Inc., Riverside Asset Management LLC, 646 Advisors LLC and Northern Asset Management.


The scheme worked like this: The two banks opened a proprietary trading account, which had constantly changing assets within these accounts. It had the appearance of being an account controlled and operated by the banks, when in fact the hedge funds selected the assets within the accounts, executed the trades and reaped the profits. In return, banks were paid a flat fee.


The “option” portion refers to the fact that the hedge funds had the right to purchase the “option” on the performance of a basket of assets. This is similar to how investors can take out options to buy, at a predetermined price, contracts for future delivery of oil or a company’s stock. It is a right but not an obligation to buy an asset at a predetermined price.


But “basket options” involve a troubling question: Why would a hedge fund buy an option on its own trading activity?


“It would be absurd,” said Levin, noting the only reason is for the tax benefits it provided.


Banks and hedge funds worked together to create a “series of fictions,” he said. One was that banks owned the accounts. Barclays actually stopped listing “basket options” activity in its financial statements as of 2009, arguing profits belonged to the hedge funds.


The instruments also skirted rules against excessive debt used to take risks. Most hedge funds invest seven or eight times the cash they actually have, a process called leveraged investing. Under the basket options afforded by Barclays and Deutsche Bank, the hedge funds could leverage at a ratio as high as $20 for every dollar they had. This sort of excessive debt used for speculative bets is what brought down investment banks Bear Stearns and Lehman Brothers and led to the 2008 financial crisis.


The IRS had no immediate comment on criticism by Levin, who complained that after issuing a Generic Legal Advice Memorandum, dubbed a GLAM, in 2010, there has been little enforcement action or collection of taxes owed.


“As far as we know, that’s about it,” he said.



A roundup of recent Michigan newspaper editorials


Daily Press (Escanaba). July 14.


Taxpayers should be enraged over government waste


Estimates by federal agencies that they in effect threw away nearly $100 billion last year should infuriate taxpayers. It is our hard-earned money, after all.


But of even more concern should be that the figure represents reports from the very agencies that wasted the money. Analysts at the Government Accountability Office — the bane of bureaucrats in many ways — say the true amount may be much higher.


Even by the agencies own admissions, the waste is staggering — about half a trillion dollars during the past five years.


Government agencies scatter taxpayers money to the winds in a variety of ways. Sometimes people who don't qualify for them get tax credits. Unemployment benefits can go to cheaters who have jobs. The food stamp program is rife with fraud.


And, of course, let us not forget government contractors who rip off taxpayers through methods such as underestimating the true cost of programs, selling the government goods and services it doesn't need, providing lousy service and in a hundred other shady ways. Bear in mind much of that waste is not counted because it does not officially represent payments that should not have been made.


A critical number was missing when members of Congress received a report on government waste last week. They were not told how many federal employees lost their jobs or were in especially egregious cases prosecuted for throwing away taxpayers money.


That may be because the bureaucracy so seldom punishes those responsible for mismanagement. To the contrary, they often receive lavish performance bonuses.


Until Congress demands that change and presidents fire agency heads who do not comply the monumental waste will continue unchecked.


-----


Traverse City Record-Eagle. July 11.


Firm's offer to save turbine could be a winner for Traverse City Light & Power


The price of anything, from a car to a carton of eggs, is only what someone is willing to pay for it. You can ask $50,000 for your used car until you turn blue, but you won't get a dime unless you're willing to face reality.


Traverse City Light & Power is in a similar situation. It wants to sell the utility's iconic wind turbine on M-72 west of town and was hoping to get something close to its estimated value of $375,000. At the least, they wanted to get $160,000, the estimated price tag to dismantle the turbine and sell it for parts.


But when reality came calling, the best — and only — offer was for a humbling $1,100 from Heritage Sustainable Energy of Traverse City. To make the $1,100 even less appealing, the sale would be contingent on Light & Power purchasing whatever energy the windmill generates for Heritage.


The downside here seemed to make the whole deal a no-brainer: No.


The wind turbine has always operated at a loss, and it kept breaking down. It hasn't run in months and in December the L&P board voted to decommission and remove it. L&P had long worked to return the turbine to peak operating efficiency — and even then it lost money — but a part continually failed and caused other parts to break.


L&P staff, who are not wind turbine mechanics, estimated last year it would cost up to $10,000 in parts and another $10,000 to bring in experts to resolve the continuing problem and secure more parts, which were increasingly difficult to find.


A local expert who helped build the turbine estimated it could cost up to $250,000 to retrofit the 18-year-old machine.


So Heritage's $1,100 offer for the windmill, which was the nation's first utility-grade wind turbine when it was built in 1996, began to look better for the city-owned utility.


L&P has purchased power from Heritage before; the utility bought wind energy from the Heritage Stony Corners Wind Farm for 11 cents a kilowatt. That was a good price four years ago, but today is double the going rate.


Tim Arends, Light & Power's executive director, said he wants a price no higher than the utility's average cost to purchase power, or about 7 cents a kilowatt.


At that price, the Heritage deal starts to look pretty good. The historic wind turbine can stay put, the city is off the hook for any outrageous costs to repair the turbine and can buy renewable energy for the going rate.


Rick Wilson, Heritage's vice president of operations, said company officials have already negotiated a property lease extension to cover the next 30 years. He said Heritage has the expertise to get the turbine back to full operation with just some technical upgrades to failed electronics. And the company is apparently confident it has the experience to make this all work.


"We have the staff and relationships and operational skills you can only achieve when you are operating multiple turbines," said Wilson, whose firm operates 53 utility-grade turbines. "It just sort of makes sense for us to take it over.


If L&P can get a locked-down price of 7 cents per kilowatt and is confident Heritage can do what it says it can do, this is, indeed, a no-brainer: Yes.


If the turbine rehabilitation effort proves to be a bust, the turbine can always be taken down, but this time with taxpayers safely out of the way.


That's a wind-win.


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The Detroit News. July 15.


Macomb Township wrong to target political signs


It's election season, and races for the Aug. 5 primary and the November general election are heating up. Political signs play a key role in these battles, and, as usual, they are flooding the landscape.


While local officials may want to control the number and types of political signs, they must be mindful that campaign signage is a form of free speech, and shouldn't be trampled in the name of beautification efforts.


Ordinances that try to restrict only political signs impinge on the First Amendment rights of candidates and their supporters. That's a concept that's been repeatedly affirmed by the courts.


Macomb Township is one of the latest local governments to draft an ordinance that goes too far in limiting political signs.


Its regulation prohibits residents from placing political signs on their property more than 30 days before an election. The law also requires signs be removed within seven days of an election.


However, in a letter from the American Civil Liberties Union of Michigan, officials were told the ordinance violates the First Amendment and should be repealed.


"While we have filed lawsuits in the past, what we try to do when we see that an ordinance may violate the First Amendment is to alert them (municipal officials) of the constitutional conflict," says Rana Elmir, deputy director of the ACLU of Michigan.


Elmir says all signs must be treated equally or they will violate the time, place and content or subject matter guidelines. Elmir says communities can institute these types of restrictions but they must apply to all signs, not just those of political candidates.


Macomb's efforts to limit the length of time candidate signs are up violates the content standard because it only applies to political signs and not, for example, to "for sale," construction or business signs, according to the ACLU.


Other communities over the past decade have run afoul of the First Amendment by trying to regulate political signs and have received ACLU letters. In some cases, the communities, such as Clawson and Milford, amended their ordinances without going to court. In others, such as Grosse Pointe Woods, Troy and Warren, the communities tried to defend their ordinances in court but lost.


People have a right to express their opinions. The U.S. Supreme Court has taken a blanket view of political signs, as it should, by allowing all to be treated equally with other types of signs.


Macomb Township officials have not yet responded to the ACLU letter. Supervisor Janet Dunn declined comment other than to say the topic wasn't on the agenda for its July 7 Board of Trustees meeting. Based on legal precedent, township leaders should amend their ordinance.


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The Mining Journal (Marquette). July 14.


Libraries offer summer learning, entertainment


The sun is shining, the fish are biting and bicycles are more than ready to ride.


But what to do with your kids when those and other summer time activities begin to wear out their welcome?


We at The Mining Journal think a trip to the local library is just the ticket.


As a newspaper, we are avid proponents of literacy and literacy programming. Giving a child a book to read can be one of the greatest gifts in his or her young life.


But libraries go way beyond just card catalogs and stacks of books these days. With a multitude of programming at Peter White Public Library in Marquette, Negaunee Public Library, Ishpeming Carnegie Public Library, Forsyth Township Library, Munising Schools Public Library and others, we hope parents take some time to bring the kids to the library for a day of fun activities that may just so happen to include a little learning.


With summer reading programs, kids can rack up points to earn books of their own by reading, or being read to. Hands-on activities abound as well, with LEGO programs and visits to some local libraries from Michigan Department of Natural Resources officials or the Moosewood Nature Center. Because while it's great for kids to get outdoors and have some fun, it's also important for them to understand just how precious the abundant natural attractions we have in our area are, for our economy as well as our own overall well-being and health.


So if you see your kids drawing aimlessly in sidewalk chalk in the driveway, or find them splayed out on the couch watching yet another re-run of their favorite cartoon or are simply tired of hearing them say, "I'm bored," take them down to your local library. It will be well worth it, we're sure.