Thursday, 7 August 2014

Army raids Syrian refugee camp in north Lebanon



BEIRUT: The Lebanese Army arrested several people in north Lebanon after raiding a Syrian refugee camp, the state-owned National News Agency said.


The terse dispatch from NNA’s correspondent in the northern province of Akkar said troops raided an unofficial camp for Syrian refugees in Khirbet Daoud.


NNA said a number of suspects were arrested in the dawn raid. It did not give details.


The raid came after a five-day battle between the Lebanese Army and Syrian rebels from the radical Nusra Front and the Islamic State of Iraq and Greater Syria in the northeastern town of Arsal.



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Lebanon's Arabic press digest – Aug. 8, 2014



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


As-Safir


36 soldiers missing ... fears of new “Azaz”


Arsal returned to the bosom of the state, but 36 members of the Lebanese Army and Internal Security Forces have not yet returned. They became hostage of the armed groups that moved them out of Arsal to Syrian territory.


From the beginning of the Arsal operation, the militants’ goal was to swap the captive soldiers with prisoners in Roumieh.


Al-Liwaa


Arsal gunmen-free


Saudi grant opens door to recruitment


Syrian refugees start the trip back home


A minister who took part in Thursday’s Cabinet meeting said that the most important decision taken by the government or better say the most important decision in the history of governments was the approval to recruit 12,000 soldiers, policemen and other security personnel.


The minister said the $1 billion Saudi grant paved the way for the recruitment decision in light of the military’s significant need for logistics.


Meanwhile, Nusra Front said on its Twitter account: “We left Arsal ... after we had handed over six captives as a goodwill gesture; and the rest of the captives are a special case.”


A well-informed source said the militants were holding 19 Lebanese soldiers and 17 policemen after the release of six security men Tuesday and Wednesday.


More to follow ...






Related Articles




  • Kahwagi: Lebanese captives moved from Arsal




  • Army: Arsal clashes part of plan targeting Lebanon




  • Politicians call for full backing of the Army




  • Army in control after militants flee Arsal




  • Efforts underway to free captured Lebanese soldiers








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China's export growth accelerates, imports sag


China's export growth accelerated in July but imports sagged in a possible sign of weakness in the world's second-largest economy.


Exports jumped 14.5 percent from a year earlier, double June's 7.2 percent growth, customs data showed Friday. Imports fell 1.6 percent, down from the previous month's 5.5 percent expansion.


Chinese leaders are counting on exports to help support employment while they try to nurture growth based on domestic consumption. Their plans call for annual trade growth of 7.5 percent, but so far this year total imports and exports are up only 0.2 percent.


Weakness in global demand for Chinese goods prompted the communist government to earlier this year launch mini-stimulus efforts based on higher spending on railways and other public works.


Economic growth edged up slightly to 7.5 percent over a year earlier in the three months ending in June. It was 7.4 percent in the first quarter.


The decline in July imports exceeded analyst forecasts and was a sign domestic economic activity might be weakening. So far this year, imports are down 0.8 percent compared with the same period last year.


July exports totaled $212.9 billion while imports were $165.6 billion. China's politically sensitive global trade surplus more than doubled over a year earlier to $47.3 billion.


The country's trade surplus with the European Union, its biggest trading partner, swelled by 37 percent over a year earlier to $13.7 billion. That with the United States widened by 17 percent to $22.3 billion.



British-US investigative couple on trial in China


A British man on trial with his American wife for illegally obtaining and selling private information about Chinese nationals says he buys such information from other consulting companies.


Peter William Humphrey made the comments Friday after his trial opened in Shanghai. They are the first such proceedings against foreign nationals. The Shanghai court reported the testimony on its official microblog.


Humphrey and his wife, Yingzeng Yu, are investigators who operated a small firm in Shanghai that helped corporate clients screen potential partners and employees and watch for embezzlement.


Their arrest last year coincided with a Chinese bribery investigation into GlaxoSmithKline. Glaxo said it hired Yu and Humphrey last year to investigate a security breach, but prosecutors have not indicated whether the two cases are linked.



GM issues third recall on SUVs that can catch fire


General Motors' troubles with safety recalls has surfaced in another case, this time with the company recalling a group of SUVs for a third time to fix power window switches that can catch fire.


The problem, revealed in documents posted by federal safety regulators this week, is so serious that GM is telling customers to park the SUVs outdoors until they are repaired because they could catch fire when left unattended.


The vehicles will be left outside for a while. Parts won't be ready until October at the earliest, according to GM. The automaker also has ordered its dealers to stop selling the SUVs as used cars until they are fixed.


The recall covers about 189,000 vehicles in North America, mainly from the 2006 and 2007 model years. Models affected include the Chevrolet TrailBlazer, GMC Envoy, Buick Rainer, Isuzu Ascender and Saab 97-X. The recall was one of six announced by GM on June 30 that covered 7.6 million vehicles.


GM is in the midst of the biggest safety crisis in its history, touched off by the delayed recall of 2.6 million older small cars to fix faulty ignition switches. The company has issued a record 60 recalls this year covering nearly 29 million vehicles.


Before this year, GM had been reluctant to issue recalls, at times opting for lower-cost fixes for safety problems. It's been fined $35 million by the National Highway Traffic Safety Administration for lapses in reporting the ignition switch problems, which it blames for at least 13 deaths.


After the ignition switch debacle, GM did a companywide safety review, appointed a new global safety chief and pledged to recall cars quickly.


The SUV problem first appeared early in 2012 when NHTSA began investigating consumer complaints of fires in the driver's-door switches that control power windows.


At first, GM tried to address the issue with a "service campaign," where it sent letters to owners telling them that water can find its way into the switches, causing rust that can result in short circuits, overheating and possibly fires. The campaign, which wasn't a recall, extended the warranty and offered service only to vehicles that exhibited the problems. It was limited to 20 states and Washington, D.C., where salt is used to clear roads in the winter.


But in August of 2012, under government pressure, GM recalled 278,000 of the SUVs in the cold-weather states and offered extended warranties to the rest of the country. NHTSA kept investigating, and 10 months later, GM expanded the recall nationwide.


By then, NHTSA and GM had received 242 complaints, including 28 about fires. There were no injuries.


In one complaint filed with NHTSA from October of 2008, a woman reported that the alarm sounded while her 2006 TrailBlazer was parked in her driveway. When she looked outside, it was in flames. Firefighters put out the blaze and told her it started in the driver's door.


"The fire burned the entire driver's side of the vehicle, a portion of the front passenger seat and the roof," she wrote. People filing complaints are not identified by the agency.


The fix used by GM last year was to put a protective coating around the window switch circuit boards, which is less costly than replacing the switches. But starting this April, GM received complaints that the switches malfunctioned in SUVs that had been repaired. So in June, it decided to do the third recall and replace all of the switches.


"We are recalling them because the fix that we put in did not work," spokesman Alan Adler said Thursday. "We're taking care of it. We're doing the right thing."


Initially GM tried the service campaign because number of incidents was low, he said. It was limited to the cold-weather states because salty water made the switches corrode quickly and incidents were few in warmer states, Adler said.


Letters notifying owners about the SUV recall should be mailed soon. Owners will get a second letter sometime from October to December telling them when parts are available to fix the vehicles.



AP source: Golisano submits bid to buy Bills


The sale of the Buffalo Bills entered the next phase with prospective ownership groups, including Donald Trump, meeting with team officials to prepare formal bids.


Two people familiar with the sale process confirmed to The Associated Press on Thursday that the New York real estate mogul was the first to receive a presentation. Trump's meeting was held in the Detroit-area on Wednesday. Buffalo Sabres owners Terry and Kim Pegula and a Toronto group fronted by rocker Jon Bon Jovi also have scheduled meetings.


The people spoke on the condition of anonymity because the sale process is private. The Bills are on the market after Hall of Fame owner Ralph Wilson died in March.


The Buffalo News first reported the development on its website.


During the meetings, prospective buyers receive extensive financial and background information on the franchise. Bids are expected to be submitted within three weeks.


A prospective owner is expected to be identified by the end of next month, and then presented to NFL owners for approval at league meetings in New York in early October.


Bills president Russ Brandon is involved in making the presentations on behalf of Morgan Stanley, the banking firm hired by Wilson's estate to oversee the sale.


Hall of Fame quarterback Jim Kelly and his brother Dan Kelly, who runs the family's business interests, are also involved in the meetings. Though the Kellys have expressed interest in purchasing the team, it's unclear if they have submitted a bid.


The Pegulas and Trump are considered the front-runners. Both have the assets to complete what is expected to be a $1 billion-plus purchase, and they also have expressed a commitment to keep the Bills in western New York.


Terry Pegula was last valued by Forbes to have a net worth of $3.3 billion. That was before Pegula closed a $1.75 billion deal on Tuesday to sell about 75,000 acres of drilling rights to American Energy Partners.


Trump was last valued with a net worth of $3.9 billion. That does not include his holdings in numerous properties, including several high-profile golf resorts he recently purchased.


The Bon Jovi-fronted group is made up of Toronto-based partners, Larry Tanenbaum, chairman of Maple Leaf Sports and Entertainment, and the Rogers family, which controls Rogers Communications.


However, it's unclear whether Bon Jovi has the liquid assets to buy the Bills if the sale price goes above $1.2 billion. Under NFL rules, a principal owner must have enough cash and use no more than $200 million in debt-financing to hold a minimum 30 percent ownership stake.


Forbes most recently valued Bon Jovi's net worth at $290 million.


Bon Jovi also faces questions about his long-term intentions to keep the team in the Buffalo area, which is a prerequisite in the sale process.


Last weekend, Bon Jovi had a letter published in The Buffalo News stating that his objective was "to carry on the legacy of Ralph Wilson and make the Bills successful in Buffalo."


He didn't state in the seven-paragraph letter that he was committed to keeping the franchise in Buffalo. The letter was received with some skepticism in Buffalo and among Bills fans.


The commitment Bon Jovi provided was working with state and local officials to identify a site for a potential new stadium.


Under the current lease, reached in December 2012, the Bills would incur a $400 million penalty for broaching the prospect of moving during the 10-year agreement. There is a one-time exception that would allow the Bills to break the agreement for just under $28.4 million in 2020.



Illinois appeals court rules against Bears on tax


An Illinois appeals court says the Chicago Bears owe $4.1 million to Cook County in amusement taxes, plus interest.


A three-judge panel at the 1st District Appellate Court posted its ruling Thursday on the dispute. Cook County has been seeking the tax payment from the Bears since 2007.


Bears lawyers argued the 3 percent amusement tax should only apply to admission-related fees and not to premium-seat extras, such as the cost of food, drinks and parking. In its 2-1 decision, the judicial panel disagreed. And it ruled the Bears should have paid taxes on the full, face-value of the tickets.



German industrial output up 0.3 percent in June


Figures show Germany's industrial production went up slightly in June compared with the previous month.


The Federal Statistics Office said Thursday that the country's output was 0.3 percent higher than in May, when it had decreased by 1.7 percent.


The country's economy ministry said in a statement that the positive trend in Germany's production sector would continue.


Overall production in the second quarter was down by 1.5 percent compared with the first quarter, which the ministry linked among other reasons to a mild winter that had led to high productivity in construction early in the year.



Lamar's profit drops in second quarter


Baton Rouge-based Lamar Advertising Co. reported net income dropped to $15.4 million, or 16 cents per share, compared to $23.1 million, or 24 cents per share, compared to the second quarter of 2013.


However, the 2014 results included a $20.8 million loss for retiring debt, which was partially offset by lower interest expenses.


The Advocate reports (http://bit.ly/1mpIuOe ) the results fell short of Wall Street's expectations.


Lamar is converting to a real estate investment trust. The trusts don't have to pay corporate income taxes on profits if at least 90 percent of profits go to shareholders.


Lamar said it expects third-quarter revenue in the range of $330 million to $334 million, an increase of 1.5 percent to 2.5 percent over the same period in 2013.



AMC Networks 2Q profit falls 57 percent


AMC Networks Inc. on Thursday reported earnings that decreased by 57 percent in its second quarter, but beat analysts' expectations.


The New York-based company said net income fell to $58.7 million, or 81 cents per share, from $135.7 million, or $1.87 per share, in the same quarter one year earlier. A year ago the company received a one-time gain of $133 million from a legal settlement with Dish Network.


Earnings, adjusted for amortization costs and to account for discontinued operations, came to 90 cents per share. Analysts surveyed by Zacks Investment Research expected net income of 87 cents per share on average.


The owner of cable channels including AMC and IFC said revenue climbed 38 percent to $522.1 million from $379.3 million in the same quarter a year ago, and beat Wall Street forecasts. Analysts expected $513.6 million, according to Zacks.


AMC Networks shares have decreased $8.54, or 13 percent, to $59.57 since the beginning of the year. The stock has dropped $11.58, or 16 percent, in the last 12 months.


Dish Network Corp. dropped AMC, IFC, and WE tv in 2012. The companies settled the dispute the following year, with Dish agreeing to resume carrying AMC, IFC, WE, and Sundance Channel and pay $700 million to AMC and Cablevision Systems Corp.



APNewsBreak: Tribe wants fee on wasted natural gas


Tribal leaders on an American Indian reservation in the heart of North Dakota's booming oil patch are proposing fees for companies that burn and waste natural gas.


The Three Affiliated Tribes outlined its plan to impose fees in a six-page document sent to oil companies. In it, the tribe said companies would be required to pay royalties for "flaring" natural gas to compensate for lost revenue when the gas isn't brought to market and sold.


Oil production on the Fort Berthold Reservation accounts for about a third of the state's oil output of more than 1 million barrels a day, which has made North Dakota the second-largest oil producing state in the country behind Texas.


The Associated Press obtained the documents from industry groups. Tribal officials didn't return several phone messages seeking comment on Thursday.


Industry officials are questioning whether the tribe has the jurisdiction to impose such fees and warned that the change could slow oil production on the reservation. They note that tribal officials signed a tax agreement in 2008 that gave the state power to regulate reservation oil production.


Before that agreement, oil companies were hesitant to drill on the sovereign land due to complex tribal rules and tax uncertainty.


State officials said Thursday they were unaware of the tribe's fee proposal and declined immediate comment.


"We certainly hope the state and the tribe can concur on who has regulatory authority," said Ron Ness, president of the North Dakota Petroleum Council, a group representing more than 500 companies working in the state's oil patch. "It doesn't do anybody any good to try to determine whose rules you got to follow."


Natural gas is a byproduct of oil drilling, but a third of it is burned off in North Dakota — at a cost of more than $1 million a month in lost state revenue — because building infrastructure to capture the gas hasn't kept pace with oil drilling.


The Three Affiliated Tribes notified oil drillers late last week of the fee plan, which would require companies that burn-off natural gas to pay royalties beginning a month after a well has been drilled.


Separate documents also furnished by the oil companies to the AP show that tribal officials earlier proposed annual rights-of-way and other charges for the companies to develop gas-gathering systems and transmission pipelines on the Fort Berthold Reservation. The reservation, which spans a million acres in west-central North Dakota, is home to the Mandan, Hidatsa and Arikara tribes.


"All these things lead up to disincentives and a potential slowdown," said Eric Dille, the government affairs manager for Houston-based EOG Resources Inc., one of the largest drillers operating on the reservation. "It's very problematic and does nothing to get pipe in the ground."


Under North Dakota law, oil producers can flare natural gas for a year without paying taxes or royalties on it. Companies can then ask state regulators for an extension because of the high costs of moving the gas to market. Almost all the extensions requested in recent years were granted, records show.


State officials have said that flaring on the Fort Berthold Reservation accounts for more than 30 percent of flaring in the state.


Three Affiliated Tribes officials said money from the fees would help pay to monitor the effect of greenhouse gas emissions on tribal members, and help develop a natural gas system to make electricity for the reservation.


"More than ever before, the tribe supports cleaner energy, cleaner air," they said in the document sent to oil companies said.


The tribe's proposal comes less than a month after North Dakota regulators adopted the most stringent rules to date aimed at reducing flaring. The state Industrial Commission, which regulates North Dakota's oil and gas industry, endorsed a policy in July that sets goals to reduce flaring in incremental steps through 2020. The new rules allow regulators to set production limits on oil companies if the targets are not met.


The tribe's proposal suggests that the state's plan does not go far enough.


"The tribe's belief (is) that operators will actively initiate (gas capture plans) when they have to the motivation of paying royalties on the flared gas," the proposal said.



Malloy highlighting his new college savings plan


Gov. Dannel P. Malloy is drawing attention to a new law he pushed that creates a financial incentive for Connecticut families who want to save for college tuition.


The CHET Baby Scholars Trust fund recently became law on July 1. The new initiative offers new parents up to $250 for investing in a tax-advantaged college savings account.


Under the program, the state will provide Connecticut families that open a 529 college savings account by their child's first birthday or within the first year after an adoption. Families that save an additional $150 in the first four years will receive a state match of $150, for a total of $250 in state funds.


Malloy and Treasurer Denise Nappier were scheduled Thursday to officially launch the program at a New Haven event.



President Obama Makes a Statement on the Crisis in Iraq

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Tonight, in a statement addressing the current crisis in Iraq, President Obama announced that he authorized two operations in the country -- "targeted airstrikes to protect our American personnel, and a humanitarian effort to help save thousands of Iraqi civilians who are trapped on a mountain without food and water and facing almost certain death."


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Fannie Mae earns $3.7B in 2Q; paying $3.7B to US


Fannie Mae is reporting net income of $3.7 billion from April through June as the housing market continued to recover.


Though the government-controlled mortgage giant reported its 10th straight profitable quarter Thursday, the second-quarter profit was down 63 percent from $10.1 billion a year earlier.


Washington-based Fannie also said it will pay a dividend of $3.7 billion to the U.S. Treasury next month. With its previous payments totaling $126.7 billion, Fannie has more than fully repaid the $116 billion it received from taxpayers.


The government rescued Fannie and smaller sibling Freddie Mac at the height of the financial crisis.



US airlines running behind schedule so far in 2014


More U.S. flights arrived late in June than the month before, continuing a string of poor performances by the nation's airlines.


The government says that in the first six months of the year, the rate of late flights was the highest since 2008 and cancelations were the highest since 2000.


The U.S. Department of Transportation said Thursday that among airlines reporting figures, 71.8 percent of domestic flights arrived on time in June, down from 76.9 percent the month before and 71.9 percent in June 2013. A flight counts as late if it arrives more than 14 minutes behind schedule.


Hawaiian Airlines and Alaska Airlines, which aren't as exposed to bad weather in the eastern and central parts of the country, had the best on-time ratings. Delta Air Lines led among the biggest carriers.


Regional airlines Envoy and ExpressJet and big carriers Southwest and American were at the bottom of the rankings. All were late more than 30 percent of the time. American and Envoy are both owned by American Airlines Group Inc., whose chief operating officer, Robert Isom, said that the company's network suffered more than rivals from bad weather.


About 2 percent of all flights in June were canceled, with Envoy, ExpressJet and SkyWest faring the worst. Delta, Hawaiian, Frontier, Virgin America and Alaska all had minuscule cancellation rates of 0.2 percent or lower.


For the January-to-June period, 3 percent of all flights were canceled, the third-worst performance in the last 20 years, according to the government figures.


Jean Medina, a spokeswoman for Airlines for America, a trade group for the large carriers, said weather has been the biggest factor all year, with 17,370 weather-related cancelations in the first half of 2014 compared with 11,480 in the same period last year.


"With the exception of April, every single month had worse weather-related cancellations than the year earlier ... there were times it was simply not safe to fly," Medina said.


For the first six months of 2014, 74.2 percent of flights by the reporting airlines were on time. That is the fifth-lowest mark for the period in the last 20 years and the lowest since 2008 and 2007.


Consumers filed 1,095 complaints with the government against U.S. airlines, an increase of 16 percent over June 2013. Hawaiian, AirTran, Southwest and Alaska had the lowest rate of complaints, while Frontier, United and US Airways had the highest.



NCAA board hands 5 biggest conferences more power


The biggest schools in college sports are about to get a chance to make their own rules.


Up first is likely finding a way to spend millions of dollars in new money — either in the form or stipends or fatter scholarships — on athletes across the country.


The NCAA Board of Directors voted 16-2 on Thursday to approve a historic package of changes that allows the five richest football conferences — the ACC, Big Ten, Big 12, Pac-12 and SEC — to unilaterally change some of the rules that have applied to all Division I schools for years. The 65 universities in those leagues will also benefit from a new, weighted voting system on legislation covering the 350 schools in Division I.


"It does provide degrees of autonomy for the five high-resource conferences," said Wake Forest President Nathan Hatch, the board chairman and a key architect of the plan. "This is not complete autonomy. We're still part of Division I, but I think it allows us to provide more benefits to student-athletes."


A handful of university presidents who spoke at NCAA headquarters after the vote agreed on one thing: Paying athletes to play is off the table. And it's very unlikely that the five leagues will design their own policies when it comes to infractions.


But there's a good chance the five leagues will take steps to add money to scholarships or craft an athlete stipend intended to help cover the so-called full cost of attending college — costs beyond tuition, room and board and books and supplies. That will be millions more in spending by leagues that are already partners in multimillion-dollar TV contracts to show off their top sports of football and basketball, raising fresh concerns about an arms race in college athletics.


It is certainly a dramatic new start for an organization that has come under increasing criticism.


Already this year, the NCAA has agreed to settle two lawsuits for a combined $90 million and still awaits a judge's decision on a federal lawsuit in which plaintiffs led by Ed O'Bannon have argued college sports' amateurism rules are anti-competitive and allow the organization to operate as an illegal cartel. Also pending is a decision by the National Labor Relations Board on whether Northwestern football players can form what would be the first union for college athletes in U.S. history.


While NCAA leaders acknowledge the new system may not quash every legal case or argument, those who helped draft this proposal believe it will give prominent schools greater leeway in addressing the amateurism model and other concerns.


"I think we sometimes have to go back to why do people file lawsuits?" said Kansas State President Kirk Schulz, who worked on the plan. "It's because they can't get the action they want. It (autonomy) is going to help with some things, not all."


The power conferences contend they need more flexibility to solve the day's hottest controversies, including recruiting and health insurance, and complained long and loud over the past two years that change was critically important.


If the decision survives a 60-day override period, the transition to the new system could begin in January. Commissioners and school leaders from the power conferences have until Oct. 1 to create a wish list of areas where they want autonomy.


Any items that make the list would require majority approval from one of the five leagues and still will need the OK of at least 12 of the 20 presidents or chancellors on the expanded board of directors. Then, one representative from each of the 65 schools in the power-five leagues and three student-athletes from each conference would vote on each item. Passage would require 48 of the 80 votes and a simple majority of support from schools in at least three of the five conferences or a simple majority of all votes (41) and a simple majority from schools in four of the five leagues to pass.


NCAA President Mark Emmert also said the board could veto an autonomous rule change if it goes too far. He described that situation as "rare."


The No. 1 priority heading into October is expanding scholarships to cover up to the full cost of attendance. Legislation to give athletes an additional $2,000 to cover college expenses was approved by the board in October 2011 but was overridden later after complaints from smaller schools, spurring the effort to pass the autonomy reforms.


South Carolina President Harris Pastides also said he will support limitations on practice times and contact in football workouts. UCLA Chancellor Gene Block wants to provide better counseling for athletes who are contemplating turning pro and helping those who do turn pro and later return to school.


The big question now is whether another override movement could derail the changes. If 75 schools sign the override measure, the board must take a second look at the plan. If 125 schools oppose the plan, it would be suspended until the board schedules a vote to reconsider.


"I think the process has been so inclusive and thoughtful that no one will be surprised with this outcome today," Emmert said when asked if he worried about an override. "That doesn't mean everyone agrees with it. But I think as people learn more about it, come to understand it, they will be more supportive. The more you look at it, the better it gets, I think."


The new system gives the five richest leagues nearly twice as much voting power (37.5 percent) as any other group on the new council, where most legislation will be approved or rejected. The five other Football Bowl Subdivision leagues would account for 18.8 percent while the second-tier Football Championship Subdivision and non-football playing schools would split up another 37.5 percent of the vote. Athletes and faculty will account for the rest.


Critics worry that the impact will create an even greater split between wealthy leagues and everyone else in the college athletics' arms race.


"I think it's going to be great for those five conferences and that's about it," said Gerald Gurney, president of The Drake Group, an NCAA watchdog. "I don't think it's going to be a good step for non-revenue sports or for Title IX. We are going to get into a new phase of competition, and there will be no holds barred."


Boise State President Bob Kustra, a most vocal critic, called for an override and said autonomy is a step toward professionalism.


"No president within Division I should be in favor of these changes," he said in a statement.


Even some of those who helped draft the legislation, such as Rice President David Leebron, said they do worry about the widening gap between haves and have-nots.


But they also want a chance to adopt some of the rules from the new NCAA power brokers, too.


"I think that's important to examine," said Wright State President David Hopkins, whose school plays in the Horizon League. "At least we want to have the opportunity to work and choose what we decide (on the autonomous issues)."


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Online:


NCAA reforms: http://bit.ly/1vj56JQ



Chicago man gets 5 years for $1M phone thefts


A Chicago man who admitted he stole more than $1 million worth of iPhones and iPads from Verizon Wireless has been sentenced to more than five years in prison.


A federal judge in Newark sentenced Stephen Gunn on Thursday and ordered him to pay $2 million in restitution.


Gunn pleaded guilty in April to one count of wire fraud conspiracy.


Federal prosecutors say Gunn accessed online accounts of dozens of Verizon's customers in New Jersey and elsewhere and placed unauthorized orders for smartphones, accessories and other electronic products.


Gunn would have the products shipped via FedEx to addresses in Texas, including some addresses that didn't exist.


At Gunn's direction, two FedEx drivers intercepted the shipments, removed the contents and reshipped the contents to Illinois addresses he provided. Gunn paid each driver thousands of dollars.


In all, the U.S. attorney's office estimated, Gunn obtained about 1,700 items, including several hundred iPhones, iPads and BlackBerry devices.


The two drivers, Marion Samuel Perkins and George Greene Jr., pleaded guilty in Texas and have been sentenced to prison.



China tightens grip on instant messaging services


China's government tightened control over popular instant messaging services Thursday after telling South Korea access to some foreign services was blocked because they were used to exchange terrorism-related information.


The government announced that only established media companies will be allowed to release political and social news. That would curtail a growing trend in use of instant messaging services by journalists and scholars to distribute independent news reports and commentary.


The ruling Communist Party has repeatedly tightened controls over microblogs and other social media that give Chinese a rare platform to express themselves to a large audience in a country where all traditional media are state-owned.


Meanwhile, China has informed South Korea it has blocked access to Kakao Talk and Line, two mobile messaging services, which it said were used to exchange terrorism-related information, according to a South Korean official who asked not to be named because he was not authorized to speak on the matter.


Beijing is on edge about security following a series of deadly attacks communist authorities blame on Islamic radicals it says want independence for the country's northwestern region of Xinjiang.


Beijing says it has confirmed terrorism-related information circulated through Kaokao Talk and Line, the South Korean official said. It was not clear how Beijing had access to messages between users of the two services, which are private and seen only by the participants.


Chinese authorities gave no details of what terrorists might use the message services, the official said. He declined to give more details.


In May, the government launched a one-month crackdown on instant messaging services to stop what it called the "infiltration of hostile forces." Authorities said it targeted people spreading rumors and information about violence, terrorism or pornography.


The campaign targeted public accounts on services including WeChat, a mobile message service run by Tencent Holdings Ltd., which has surged in popularity in the last two years.


"Our information management does not allow for any blank space. It would be regulated later or sooner, and it is only a matter of time," said Hu Yong, professor with the School of Journalism and Communication at Peking University and an expert on the Internet.


Last summer, Beijing cracked down on microblogging services such as Sina Weibo in an apparent effort to stifle criticism of the ruling party. Authorities closed accounts of liberal-minded microbloggers and detaining bloggers on criminal charges of spreading rumors or other offenses.


The crackdown helped drive users to WeChat, which allows individuals to set up public accounts that others can subscribe to, similar to the microblogging feature of having followers but without a word limit.


Journalists and scholars have since set up accounts and attracted sizeable followings on WeChat.


Those public accounts have created a new venue for information-sharing, and now "the government needs to block it," Hu said.


Tencent did not immediately respond to a request for comment.


Compared to its response to microblogging, Beijing has reacted faster to WeChat and similar services. Government agencies and state media have set up public accounts and censors remove accounts deemed offensive.



AP Technology Writer Youkyung Lee in Seoul and researcher Yu Bing in Beijing contributed.


Japan architects sell a lifestyle on global stage


A new generation of Japanese architects believes the world has fallen out of love with the 20th century steel and concrete skyscraper. They are pushing a human-friendly alternative that some say has roots in the elegant simplicity of the traditional Japanese tea house.


Instead of pursuing monuments that cry out with a message of economic power, these Pritzker Prize-winning architects are scoring success with a uniquely Japanese reinterpretation of the past.


Unlike their predecessors, who modernized Japan with Western-style edifices, they talk of fluidly defining space with screens and sliding doors, innovatively blending with nature, taking advantage of earthy materials and incorporating natural light, all trademarks of Japanese design.


Their sensibility is also a hit abroad, said Erez Golani Solomon, professor of architecture at Waseda University in Tokyo.


"Food and architecture," said Solomon, stressing how the two are Japan's most potent brands. "They are powerful — Japan's strongest cultural identity."


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Kengo Kuma, one of the star architects, finds he is in demand not only in Japan and in the West but also in places such as China, which has tempestuous relations with Tokyo but now boasts a growing fan base for Kuma's works.


Among the major China projects for Kuma are the recent Xinjin Zhi Museum, whose sloping angles and repeated tile motifs are characteristically Kuma, and the Yunnan Sales Center, a sprawling complex of shops, housing and a theater, where wooden lattice decorates the main structure overlooking a pond.


He also designs private homes for affluent Chinese who admire Zen philosophy and want to incorporate that stark aesthetic into their daily lives, he said.


Kuma, an admirer of Frank Lloyd Wright, a pioneering American architect known for cherishing nature and people in his designs, at times uses interlocking wooden frames, defining a building's shape with a collage of angles that seem to change organically. Natural wood is everywhere, in screens, doors and furniture.


Japanese architecture offers warmth and kindness as it is adept in the use of natural light and artisanal craftsmanship, such as bamboo and paper. It is "working together like music," Kuma said, to create a comfortable and luxurious spot even in a cramped space. That's the basic principle of a Japanese tea house, he said.


"It's part of our genetic makeup," Kuma told The Associated Press, sitting in his Tokyo studio among elegant chairs designed by himself and others by Ludwig Mies van der Rohe, and pointing with disgust at the vaulting skyscrapers visible from his window.


The older generation of Japanese may have embraced the superiority of the Western lifestyle, including construction he feels is merely based on stacking blocks on top of each other, but not architects of his generation, said Kuma.


"People all over the world are sick and tired of modern monuments," he said. "The desire for the human and the gentle is a backlash to the globalization that brought all these monster skyscrapers."


No other place illustrates Kuma's Japanese sense of blending with the surroundings than his Nezu Museum in Tokyo. Its sloping roofs evoke temples, and one side is all glass, facing a Henri Rousseau-evoking garden spilling with plants, Buddhist statues and a pond with irises.


---


Also erasing boundaries with the outside is the architecture of Sou Fujimoto, another rising star.


Fujimoto's house of glass, and it is literally just that, sits in a residential area in Tokyo, stunning in how it quietly asserts itself, despite its transparency, turning stereotypes of housing on their heads.


Instead of seeking shelter from the environment, residents experience the passage of time, seeing the sun and the stars above; watching and being watched by neighbors and passers-by. No room is defined by walls, as we know them, although drapes can be drawn for privacy.


Inhabitants move from one area to another within a borderless box. At night, the home glows like a luminescent jewel.


Like Kuma, Fujimoto is busy, working all over the world, including Germany, the U.S., France and China. Eighty percent of his work is from outside Japan, and half of his staff is non-Japanese.


His works have a striking look. His beachside cultural center in Serbia is a giant spiral, while a bungalow in southern Japan is a cube of wooden blocks. His Serpentine Pavilion in London of metal lattice has been compared to a cloud. In Montpellier, France, construction begins next year for a housing complex he has designed with balconies sprouting precariously at all angles from a tower.


Fujimoto, who admires modern architecture pioneer Le Corbusier, sees the jumbled, kitsch Tokyo city landscape as connected with the forests he grew up with in the rural northernmost island of Hokkaido.


"This understanding of the connection between nature and the man-made is Japanese. The Japanese garden utilizes nature while also being finely crafted. You go back and forth between those two points," Fujimoto said. "I like this co-existence of the convoluted with simplicity, being not just minimalist and simple but also energetic and complex."


---


In a telling sign of their rising stature, four of the winners of the prestigious Pritzker Architecture Prize in the last six years have been Japanese: Kazuyo Sejima, Ryue Nishizawa, Toyo Ito and Shigeru Ban.


In the past, the winners were few and far between. Kenzo Tange, known for his statuesque, curvaceous Tokyo Olympic stadium, won the Chicago-based Pritzker in 1987; Fumihiko Maki, who infused an Eastern sensibility into his floating forms of glass, metal and concrete, won in 1993; and the self-taught and idiosyncratic Tadao Ando was the third Japanese to win, nine years after Tange.


More recently, Japanese have also been recognized with the gold medal by The American Institute of Architects. Maki won in 2011 and Ando in 2002. Ito won the Royal Gold Medal from the Royal Institute of British Architects in 2006. A win by a non-Westerner for such awards had long been rare.


Sejima, who works with Nishizawa, is coveted for her trademark ethereally white designs, often using glass, such as the Louvre Lens in France, the Christian Dior building in Tokyo and the Zollverein School in Germany.


Ban carved out his career by using recycled paper tubes as construction material, and his housing ideas have been widely praised for their use as temporary housing after disasters.


When people were crammed in a gym after the 2011 tsunami in northeastern Japan, his idea of hanging cloth as partitions on paper-tubing frames delivered privacy and a sense of mental peace.


Ban also created housing out of shipping containers, placed on top of each other, proving that a little artistry could add beauty as well as comfort to disaster housing.


Ban denies anything "Japanese" about his designs, scoffing at the often made suggestion that he is inspired by "shoji" paper screens, stressing he uses paper as construction materials.


"I hate to use Japanese tradition consciously as a style," he said, while conceding that his idea of connecting the inside with the outside may be Japanese, but noting with a laugh the influence can be seen with American architects as well.


"Nationality is not that important," he said.


Ban is no exception in being in great demand outside Japan, such as his villa in Sri Lanka that blends with the ocean on one side and a forest on the other, and the Cardboard Cathedral in Christchurch, New Zealand, which was built of paper and glass to replace the cathedral damaged in the 2011 quake.


---


Fuji Kindergarten in Tachikawa, outside Tokyo, by Takaharu and Yui Tezuka, also illustrates the idea of fusing the outside with the inside.


The walls of the doughnut-shaped building are glass, and they open as sliding doors into a courtyard. The spherical roof works as a playground, for the children to run around and around.


The couple often uses the roof for living space, and they swear sitting side by side on a sloped surface, like a riverbank, as opposed to facing each other across a table, is good for human relations.


With Japanese architecture, a slight change of approach transforms a roof into something more than just a roof, in the same way the artistry with which a chef cuts and presents raw fish transforms it into sashimi, Takaharu Tezuka said.


The Tezukas also utilize the Japanese "engawa," or porch, to blur the distinction between inside and outside for a "wall-less" effect.


"One of the most important qualities of Japanese architecture is its openness," said Takaharu Tezuka. "Some European and American architects say it's important to have intermediate space, between inside and outside. But our approach is different. Everything is intermediate."


It's also clear the Tezukas have also made family a central theme in their designs.


Seeing that children climb into closet-like niches, they created hideaway spots in their buildings. Their work proposes a move away from the stereotypical Japanese workaholic lifestyle toward an enjoyment of quality in daily life.


The 1987 Pritzker winner "Kenzo Tange was dealing with Japanese architecture as a symbol," said Takaharu Tezuka, who always wears blue. "But now we are referring to lifestyle."


Takaharu's wife and collaborator Yui wears red. Everything they share, such as their car, is yellow and their daughter dresses in yellow. Their son wears green.


"Architecture is a tool, and it holds the possibility for changing your life," she said. "Life will become fun."


---


Kengo Kuma: http://kkaa.co.jp/


Sou Fujimoto: http://bit.ly/V6bfbk


Shigeru Ban: http://bit.ly/1sCTVIs


Takaharu and Yui Tezuka: http://bit.ly/V6bdjM


Follow Yuri Kageyama on Twitter at http://bit.ly/1sCTVIt



Wisconsin sees slow growth in consumer spending


New federal data shows consumer spending in Wisconsin grew slower than the national average and slower than personal income from 2011 to 2012.


The U.S. Department of Commerce released its first state-by-state breakdown of consumer spending on Thursday. It shows a 2.8 percent increase in Wisconsin from 2011 to 2012. The biggest jump was in spending for motor vehicles and parts. That grew 6.3 percent.


Nationally, consumer spending grew an average of 4.1 percent from 2011 to 2012.


But income gains in Wisconsin have been slower as well. Nationally, personal income increased 4.2 percent from 2011 to 2012. In Wisconsin, it grew only 3.9 percent. Real personal income, which takes inflation into account, grew even slower.



Market Basket CEOs: We're not laying off workers


Market Basket's new CEOs say they are not laying off workers, but that store directors have been told to adjust workers' hours to meet current demand, and that the company hopes to get back to normal business levels soon.


Company co-CEO Felicia Thornton said in a statement Thursday that store directors "are to let their associates know that they are not laid off."


The statement came after attorneys general in Massachusetts and New Hampshire said they received a surge in calls from workers at Market Basket.


Massachusetts Attorney General Martha Coakley has opened a dedicated hotline for Market Basket employees.


New Hampshire Attorney General Joseph Foster says his office also has been fielding calls from workers saying they've been laid off and asking about unemployment benefits. Foster says his office doesn't handle employment issues.



Ala. judge throw out suit targeting loan database


A state judge has thrown out a lawsuit from payday lenders looking to challenge regulations requiring a central database to track payday loans.


The Montgomery Advertiser reports (http://on.mgmadv.com/1kMaEIC ) a Montgomery judge ruled that the State Banking Department didn't exceed its authority last year by ordering a $500 cap on payday loans and a database to make sure consumers didn't have multiple loans out for more than that amount at one time.


Payday loans are short-term loans have annual interest rates that can hit 456 percent. Payday lenders say they serve a market that banks don't want to serve, and the costs are cheaper than bouncing a check.


Southern Poverty Law Center attorney Sara Zampierin says the ruling will help address predatory lending in the state and hold lenders accountable.



AP source: Golisano submits bid to buy Bills


The sale of the Buffalo Bills entered the next phase with prospective ownership groups, including Donald Trump, meeting with team officials to prepare formal bids.


Two people familiar with the sale process confirmed to The Associated Press on Thursday that the New York real estate mogul was the first to receive a presentation. Trump's meeting was held in the Detroit-area on Wednesday. Buffalo Sabres owners Terry and Kim Pegula and a Toronto group fronted by rocker Jon Bon Jovi also have scheduled meetings.


The people spoke on the condition of anonymity because the sale process is private. The Bills are on the market after Hall of Fame owner Ralph Wilson died in March.


The Buffalo News first reported the development on its website.


During the meetings, prospective buyers receive extensive financial and background information on the franchise. Bids are expected to be submitted within three weeks.


A prospective owner is expected to be identified by the end of next month, and then presented to NFL owners for approval at league meetings in New York in early October.


Bills president Russ Brandon is involved in making the presentations on behalf of Morgan Stanley, the banking firm hired by Wilson's estate to oversee the sale.


Hall of Fame quarterback Jim Kelly and his brother Dan Kelly, who runs the family's business interests, are also involved in the meetings. Though the Kellys have expressed interest in purchasing the team, it's unclear if they have submitted a bid.


The Pegulas and Trump are considered the front-runners. Both have the assets to complete what is expected to be a $1 billion-plus purchase, and they also have expressed a commitment to keep the Bills in western New York.


Terry Pegula was last valued by Forbes to have a net worth of $3.3 billion. That was before Pegula closed a $1.75 billion deal on Tuesday to sell about 75,000 acres of drilling rights to American Energy Partners.


Trump was last valued with a net worth of $3.9 billion. That does not include his holdings in numerous properties, including several high-profile golf resorts he recently purchased.


The Bon Jovi-fronted group is made up of Toronto-based partners, Larry Tanenbaum, chairman of Maple Leaf Sports and Entertainment, and the Rogers family, which controls Rogers Communications.


However, it's unclear whether Bon Jovi has the liquid assets to buy the Bills if the sale price goes above $1.2 billion. Under NFL rules, a principal owner must have enough cash and use no more than $200 million in debt-financing to hold a minimum 30 percent ownership stake.


Forbes most recently valued Bon Jovi's net worth at $290 million.


Bon Jovi also faces questions about his long-term intentions to keep the team in the Buffalo area, which is a prerequisite in the sale process.


Last weekend, Bon Jovi had a letter published in The Buffalo News stating that his objective was "to carry on the legacy of Ralph Wilson and make the Bills successful in Buffalo."


He didn't state in the seven-paragraph letter that he was committed to keeping the franchise in Buffalo. The letter was received with some skepticism in Buffalo and among Bills fans.


The commitment Bon Jovi provided was working with state and local officials to identify a site for a potential new stadium.


Under the current lease, reached in December 2012, the Bills would incur a $400 million penalty for broaching the prospect of moving during the 10-year agreement. There is a one-time exception that would allow the Bills to break the agreement for just under $28.4 million in 2020.



Impact of Russia’s ban on U.S. poultry small, unless it’s your chickens

McClatchy Newspapers



Russian retaliatory sanctions announced this week against U.S. and European agricultural products are minuscule in the grand scheme of global trade but are hardly paltry for poultry producers in the Carolinas and across the South to Texas.


The sanctions against more than $1 billion in annual U.S. farm exports to Russia pale compared with the isolation many Russian energy and financial firms are now feeling in the wake of a blacklisting by both Europe and the United States.


Yet Russia’s actions in response carry some bite, whether it’s on salmon roe exports from Washington state or on almonds and pistachios grown in California. It’s especially true for chicken and turkey raised or slaughtered in the Carolinas, Mississippi and Texas.


“Fortunately, Russia is not as significant to us as an industry as they were,” said Mike Cockrell, chief financial officer for Sanderson Farms, a large poultry producer and exporter with operations in North Carolina, Texas, Louisiana and in its home state of Mississippi. “In 2008 they represented about 20 percent of our industry’s exports.”


That’s not to say Russian sales are inconsequential. Sanderson Farms shipped 87.5 million pounds of product there last year, worth about $40 million.


“Forty million dollars is certainly a lot of money, but at the end of the day we and the industry will seek out alternative markets for our product,” said Cockrell, noting that the $40 million represents about 1.5 percent of his company’s total sales.


Pilgrim’s Pride Corp., headquartered in Greeley, Colo., is also a major poultry exporter, doing business with 105 countries. But it was mum Thursday on the impact of Russia’s sanctions.


“We are not providing any comment at this time,” said Rosemary Geelan, a spokeswoman. Pilgrim’s Pride operates in Texas, Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, North Carolina, South Carolina, Tennessee, Virginia and West Virginia.


Tyson Foods is another major poultry and meat exporter to Russia. Its website notes that Russia accounted for 3 percent of all its chicken exports in fiscal 2012 and 9 percent of its pork exports.


“We don’t report export volumes for specific counties,” said Worth Sparkman, a company spokesman, adding that “we’re disappointed about the loss of the Russian market but don’t expect the impact to be significant since the volume we ship there can be absorbed by other global markets.”


After the U.S. and the European Union ratcheted up sanctions against Russia last month, retaliation was expected. Sanderson’s sales force actively sought new markets for dark chicken and turkey meat for weeks before Wednesday’s announced retaliation.


“You don’t find alternative markets for 87.5 million pounds of chicken overnight. It will take us some time to do that,” Cockrell acknowledged, adding, “We’ve done a pretty good job diversifying our exports.”


Sanderson Farms exports some product from a facility in Kingston, N.C., but most of its exports originate at de-boning plants in Waco, Texas, Hammond, La., and operations in the Mississippi cities of Laurel, Collins and Hazelhurst. The company is shopping potential sites for a new plant near Fayetteville, N.C., which will be more export focused. Much of its chicken exports now go through the Port of New Orleans.


About 3 percent of the exports moving through South Carolina ports, namely Charleston, are bound for Russia. Food and agriculture products account for about 12 percent of all the cargo bound for Russia, according to data crunched for McClatchy by the South Carolina Ports Association. South Carolina ports last year moved about 1,800 20-foot containers of food and agriculture products to Russia.


Georgia’s Port of Savannah also handles a large volume of poultry exports.


“We are monitoring the trade embargo to Russia very closely. The primary export ag commodities that move through our ports to Russia is poultry and peanuts, very important markets for the state of Georgia,” said Curtis Foltz, executive director of the Georgia Ports Authority. “The sanctions have just been announced and our customers are evaluating the impacts to Russia and any opportunities in alternative markets.”


The Russian ban on poultry is not a first. U.S. poultry was banned during the Bush administration in 2003 and 2004 when Russia objected to trade penalties levied against Russian steel. Poultry was again targeted again briefly in 2010.


While an inconvenience for U.S. exporters, the poultry sanctions ultimately hurt the Russian consumer. Russian poultry is more expensive because the country has to import feed, and U.S. producers enjoy numerous cost advantages.


“We don’t sell chicken to Putin. We sell chicken to Russian consumers, and they are going to be the ones that suffer from this,” predicted Cockrell. “If that’s what Putin wants to do, it’s his consumers suffering as a result.”


The United States chose not to impose sanctions that could hurt ordinary Russians, so Russia’s announcement Wednesday carried some irony.


“What the Russians have done here is essentially to impose sanctions on their own people,” David Cohen, the Treasury Department’s undersecretary for terrorism and financial intelligence, said in a call with reporters.


Russia’s government is limiting access to food, a move, said Cohen, “that the U.S. and our allies would never do.”


The checkered history of Russia using poultry imports as a political weapon spurred other U.S. poultry companies to steer clear of that market.


“It was just such an up-and-down market,” Mitch Mitchell, vice president of sales for Case Farms in Morganton, N.C. , which had taken the decision before he joined the management team, but it was the same one taken by his prior employer. “We just got tired of the roller-coaster.”


Case Farms exports about 10 percent of its product, mainly to South Korea, China and elsewhere in Asia. A protracted cutoff of Russia could lead to lower profits from poultry exports, he warned, if companies are all courting the same buyers for U.S. chicken.


Lesley Clark of the Washington Bureau contributed.



New publisher named for Post-Star in Glens Falls


Terry Coomes (kooms), a former newspaper advertising executive in North Carolina, has been named publisher of The Post-Star in Glens Falls.


The newspaper reports (http://bit.ly/1pDZQLc ) the appointment was announced Wednesday by Nathan Bekke, group publisher for Lee Enterprises, owner of The Post-Star.


The 55-year-old Coomes formerly worked for Omaha, Nebraska-based BH Media Group, a Berkshire Hathaway company. BH Media operates 69 newspapers in North Carolina and nine other states. While in North Carolina, she was advertising director and specialty products manager for the News & Record in Greensboro.


Coomes replaces Rick Emanuel, who left in June to oversee daily GateHouse newspapers in Corning, Canandaigua and Hornell.


The Post-Star is owned by Davenport, Iowa-based Lee Enterprises, which owns 46 daily newspapers and a joint interest in four others in 22 states.



Argentina asks world court to consider debt case


Argentina is seeking to sue the United States at the world court over U.S. court rulings that last week forced the Latin American country into a default.


The International Court of Justice, commonly known as the world court, said in a statement Thursday it has received a request from Argentina to take on the case. There is a major hurdle though: the U.S. must agree to grant the international court jurisdiction if the suit is to proceed.


In a statement, the Hague, Netherlands-based court said Argentina's filing asserted that U.S. court rulings amount to "violations of Argentine sovereignty."


The dispute stems from a U.S. court's order for Argentina to pay in full a group of bondholders led by a New York hedge fund who refused to accept lower payments for restructured bonds following the country's default in 2001.


The U.S. court, in a decision upheld by the Supreme Court, ordered Argentina to pay the holdout investors about $1.5 billion. It blocked the country from making $539 million in interest payments to bondholders who did accept the restructuring, leading the country into a new default on July 30.


Argentine officials have repeatedly argued that the U.S. court decisions violate its sovereignty.


The default, the country's second in 13 years, adds increased uncertainty to an economy already in recession.


The International Court of Justice is the United Nations' court for resolving disputes between nations. In its statement Thursday, it said it has passed on Argentina's filing to the U.S. government.


It said that no action will be taken in the proceedings "unless and until" the U.S. agrees to grant the U.N. court jurisdiction.



Associated Press reporter Ben Fox contributed to this story from Buenos Aires.


FDA: Georgia plant waited to disclose salmonella


Officers at a Georgia peanut plant took five days to disclose that lab tests found salmonella in some of their products, despite repeated questioning from on-site inspectors rushing to find the source of a deadly national outbreak, a federal investigator testified Thursday.


Food and Drug Administration inspectors arrived at the Peanut Corp. of America plant in rural Blakely on Jan. 9, 2009, after tubs of salmonella-tainted peanut butter were traced to the factory. Now the company's former owner and two others are standing trial in U.S. District Court in a rare instance of corporate officers and workers being prosecuted in a food poisoning case.


Bob Neligan, an FDA food safety investigator, told the jury Thursday the plant's manager told inspectors during their first day at the plant that the only time salmonella had been detected during routine lab tests on the company's products had turned out to be a false positive. The same manager, Samuel Lightsey, changed his story a few days later, he said.


"It was finally on day five that Mr. Lightsey revealed they had had three positives for salmonella, and that would have been in the last year or so," Neligan said. "We had continuously asked that from day one."


By the end of January, after the FDA took the unusual step of issuing Peanut Corp. a mandatory order to turn over two years of records, inspectors found lab tests had confirmed salmonella in 12 lots of ground peanuts, peanut paste and peanut butter produced at the Georgia plant since 2007. He said most companies linked to food-borne illnesses voluntarily "hand over as many records as they can to resolve the issue quickly."


Neligan said other company officers who asked about salmonella before the tests were disclosed included Peanut Corp. owner and president Stewart Parnell and the plant's quality assurance manager, Mary Wilkerson. Parnell has been charged with shipping contaminated food to customers and with covering up positive lab tests for salmonella, as has his brother, food broker Michael Parnell. Stewart Parnell and Wilkerson are also charged with obstruction of justice by withholding information from investigators. Conspiracy and obstruction charges brought against the defendants in a 76-count indictment last year each carry a maximum sentence of 20 years.


The FDA inspection led to the Georgia plant being shut down and Peanut Corp. later went bankrupt. The 2008-09 salmonella outbreak prompted one of the largest food recalls in U.S. history. The Centers for Disease Control and Prevention found that 714 people in 46 states were infected and nine people died — three in Minnesota, two in Ohio, two in Virginia, one in Idaho and one in North Carolina.


Lightsey was also indicted in the salmonella case. He pleaded guilty in May to seven criminal counts after reaching a deal with prosecutors, who plan to call Lightsey as a witness against the Parnell brothers and Wilkerson.


Defense attorneys took aim at Lightsey during their cross-examination of FDA agents Thursday. Ed Tolley, the attorney for Michael Parnell, had food safety inspector Janet Gray confirm that Lightsey was the company officer who initially told investigators the only salmonella test Peanut Corp. had worried about turned out to be a false-positive result.


"An old-fashioned Georgia way of saying that is Mr. Lightsey lied to you when you asked him that question the first time, isn't it?" Tolley asked Gray, who said she agreed with him.


Stewart Parnell's attorney, Tom Bondurant, asked if FDA inspectors felt pressure internally or from Congress to cast blame beyond the plant manager. He cited an email Gray said she received from her supervisor that read: "Was it Lightsey or was it Lightsey under the direction of Stewart Parnell?"


"While you were conducting your inspection, a lot of other people got involved. Congress got involved, didn't they?" Bondurant said. "Wasn't there a lot of external pressure in this inspection that was unlike a lot of inspections you've done?"


Gray said the Peanut Corp. inspection was intense, but said she wasn't pressured to implicate anyone.


The trial in southwest Georgia began a week ago. The judge has said the prosecution case alone could take eight weeks to present.



Fannie Mae earns $3.7B in 2Q; paying $3.7B to US


Fannie Mae is reporting net income of $3.7 billion from April through June as the housing market continued to recover.


Though the government-controlled mortgage giant reported its 10th straight profitable quarter Thursday, the second-quarter profit was down 63 percent from $10.1 billion a year earlier.


Washington-based Fannie also said it will pay a dividend of $3.7 billion to the U.S. Treasury next month. With its previous payments totaling $126.7 billion, Fannie has more than fully repaid the $116 billion it received from taxpayers.


The government rescued Fannie and smaller sibling Freddie Mac at the height of the financial crisis.



US airlines running behind schedule so far in 2014


More U.S. flights arrived late in June than the month before, continuing a string of poor performances by the nation's airlines.


The government says that in the first six months of the year, the rate of late flights was the highest since 2008 and cancelations were the highest since 2000.


The U.S. Department of Transportation said Thursday that among airlines reporting figures, 71.8 percent of domestic flights arrived on time in June, down from 76.9 percent the month before and 71.9 percent in June 2013. A flight counts as late if it arrives more than 14 minutes behind schedule.


Hawaiian Airlines and Alaska Airlines, which aren't as exposed to bad weather in the eastern and central parts of the country, had the best on-time ratings. Delta Air Lines led among the biggest carriers.


Regional airlines Envoy and ExpressJet and big carriers Southwest and American were at the bottom of the rankings. All were late more than 30 percent of the time. American and Envoy are both owned by American Airlines Group Inc., whose chief operating officer, Robert Isom, said that the company's network suffered more than rivals from bad weather.


About 2 percent of all flights in June were canceled, with Envoy, ExpressJet and SkyWest faring the worst. Delta, Hawaiian, Frontier, Virgin America and Alaska all had minuscule cancellation rates of 0.2 percent or lower.


For the January-to-June period, 3 percent of all flights were canceled, the third-worst performance in the last 20 years, according to the government figures.


Jean Medina, a spokeswoman for Airlines for America, a trade group for the large carriers, said weather has been the biggest factor all year, with 17,370 weather-related cancelations in the first half of 2014 compared with 11,480 in the same period last year.


"With the exception of April, every single month had worse weather-related cancellations than the year earlier ... there were times it was simply not safe to fly," Medina said.


For the first six months of 2014, 74.2 percent of flights by the reporting airlines were on time. That is the fifth-lowest mark for the period in the last 20 years and the lowest since 2008 and 2007.


Consumers filed 1,095 complaints with the government against U.S. airlines, an increase of 16 percent over June 2013. Hawaiian, AirTran, Southwest and Alaska had the lowest rate of complaints, while Frontier, United and US Airways had the highest.



US jobless aid applications fell to 289,000


Fewer people sought U.S. unemployment benefits last week, as jobless claims remain at relatively low levels that point toward stronger economic growth.


Weekly applications for unemployment aid fell 14,000 to a seasonally adjusted 289,000, the Labor Department said Thursday. The prior week's was revised up slightly to 303,000.


The four-week average, a less volatile measure, fell 4,000 to 293,500. That's the lowest average since February 2006, almost two years before the Great Recession began at the end of 2007.


"It does suggest that the labor market has shifted to a higher gear," said Xiao Cui, an analyst with the bank Credit Suisse.


Applications are a proxy for layoffs. When employers keep their workers, it can indicate potentially rising incomes, increased hiring activity and confidence that the economy is improving.


Employers added a net total of 209,000 jobs in July, the sixth straight month of job gains above 200,000, the government reported Friday.


The recent spurt of hiring has encouraged more people to start looking for work, causing the unemployment rate to inch up to 6.2 percent from 6.1 percent. The government only counts people searching for jobs as unemployed.


Still, greater job security and more hiring activity have yet to boost wages by much. Wage growth has slightly outpaced inflation since the recession ended more than five years ago.


But more people with jobs increases the total number of paychecks, which could boost consumer spending and growth.



Detroit mayor announces water bill collection plan


Facing international criticism for mass water shutoffs aimed at resolving millions of dollars' worth of unpaid bills, Detroit's mayor announced Thursday the bankrupt city will offer affordable, consistent payment plans and financial assistance to many delinquent customers.


Mayor Mike Duggan made the announcement Thursday at City Hall. His office and Detroit water officials spent days redesigning how collections will be handled.


Duggan said the "city needs to be more mindful making sure water is affordable and added the plan should make it much easier for people to pay or seek help if they cannot.


"If you're truly in need, we're going to get you to the right place," he said.


Detroit has shut off service to around 17,000 to 18,000 residential customers, approximately one of 10 of the roughly 170,000 total. About 60 percent to 70 percent have been restored and officials say restorations continue.


The shutoffs have been imposed against commercial and residential customers 60 days behind or owing more than $150. Several groups appealed to the United Nations for support, and three U.N. experts responded the shutoffs could constitute a violation of the human right to water.


Duggan promised to streamline the payment process for customers facing shutoffs, including expanding hours of operations and more staff to help, and improve notification to delinquents. The city also has created a nonprofit fund to accept donations for those in need. It already has a few hundred thousand dollars in it, said Duggan, who was given control of the water department by state-appointed emergency manager Kevyn Orr as criticism of the shutoffs escalated.


Shutoffs have been halted until Aug. 25. That date remains in place but the city plans a Water Fair on Aug. 23 to give customers one final opportunity to take care of bills and get support.


Detroit's water system serves about 700,000 city residents and 4 million people in southeastern Michigan, but the city-owned water system has about $6 billion in debt that's covered by bill payments. As of July 1, more than $89 million was owed on nearly 92,000 past-due residential and commercial accounts, which are still subject to shut off.


The Detroit Water and Sewerage Department is currently run by a board of commissioners, but the entity reported to previous mayors before Orr was appointed as emergency manager in August 2013, a job that tasked him with overseeing the city's finances and most operations.



Arsenal, Porto head Champions League playoffs draw


Arsenal and Porto are among the big clubs entering the Champions League qualifying campaign when the draw for the last-round playoffs is held Friday.


Arsenal, chasing a 17th straight group-stage campaign, and two-time European champion Porto are the highest-ranked teams in the 20-team draw.


They are seeded with Zenit St. Petersburg, 2002 runner-up Bayer Leverkusen and Napoli in the section for teams which are not national champions.


Their unseeded opponents are Athletic Bilbao, Lille, Copenhagen, Standard Liege and Besiktas. The Turkish club advanced from the third qualifying round Wednesday with a hat trick from former Chelsea forward Demba Ba to beat Feyenoord 3-1 and complete a 5-2 aggregate win.


"He is not 100 percent but fit to play," Besiktas coach Slaven Bilic said of his new signing.


Clubs from the top five leagues in UEFA's rankings — Spain, England, Germany, Italy and Portugal — join in the fourth and final qualifying round, with two-leg matches scheduled for Aug. 19-20 and Aug. 26-27.


In the champions section, 1986 European Cup winner Steaua Bucharest is seeded with Salzburg, APOEL, BATE Borisov and Ludogorets Razgrad.


Potential opponents are Maribor, Legia Warsaw, Slovan Bratislava, 1979 runner-up Malmo and Aalborg.


Playoff winners join the 22 clubs directly qualified for the group stage. The eight four-team groups are drawn Aug. 28 in Monaco.


The 10 playoff losers enter the second-tier Europa League group stage, drawn Aug. 29.


Though each playoff team gets 2.1 million euros ($2.8 million) form UEFA, the real prize — in status and cash — comes in the six-match Champions League group stage which kicks off in September.


UEFA pays a basic 8.6 million euros ($11.5 million) fee for reaching group stage, plus 1 million euros ($1.34 million) per win and 500,000 euros ($670,000) per draw.


Teams also get a share of television rights money in a near 1 billion euros ($1.34 billion) payout shared by the 32 group teams.


Arsenal's streak of claiming a share of that bonanza started in the 1998-99 season.


Zenit was fined 6 million euros ($8 million) of its prize money last season by UEFA for breaching Financial Fair Play rules, and is restricted to registering only 22 senior players in this year's competition instead of the usual 25-man squad.


Led by former Porto and Chelsea coach Andre Villas-Boas, Zenit got two late goals Wednesday to beat AEL Limassol 3-0 and advance 3-1 on aggregate.


In the champions section Wednesday, Legia routed group-stage regular Celtic 6-1 on aggregate, and perennial qualifier Dinamo Zagreb was stunned at home by Aalborg.


Danish champion Aalborg is the lowest ranked of the 20 playoff teams, earning its place with a 2-0 win in Zagreb, to advance 2-1 on aggregate.


Copenhagen, the Danish league runner-up, also advanced with a 2-0 second-leg win over Dnipro of Ukraine to remove one security problem from the Champions League.


UEFA has deemed some Ukraine cities, including Dnipropetrovsk, unsafe to host matches during ongoing conflict with pro-Russian separatist rebels, and currently prohibits Ukraine vs. Russia matches in its club competitions.


Malmo's return to Europe's elite links the competition to its 1970s heyday dominated by Ajax, Bayern Munich and Liverpool, which all feature in the groups draw


The Swedish champion was not a fully professional club when it lost the 1979 European Cup final to England's Nottingham Forest, and has never played in a Champions League group.


Malmo advanced Wednesday when Markus Rosenberg scored twice in a 2-0 home win against Sparta Prague, enough to advance on away goals after losing the first leg 4-2.


"Winning a match like this for this club, of course it's special," Rosenberg said.



Miss. consumer spending grows slowest in nation


Consumer spending grew more slowly in Mississippi than in any other state in 2012, reflecting the state's slow recovery from the recession.


A report released Thursday by the U.S. Commerce Department finds overall personal consumption spending grew 2.5 percent in Mississippi in 2012, compared to 4.1 percent nationwide. With other figures showing Mississippi's economy grew by a brisk 3.5 percent that year, it suggests gains aren't making it to the pockets of residents, or if so, they're not spending that money.


Per-capita spending grew 2.2 percent to $27,406, compared with 3.3 percent growth to $35,498 nationwide. Only Wyoming and Hawaii saw slower growth.


Mississippians spend more than the national average on gasoline, reflecting a rural and car-dependent state. However, they spend less than all other Americans on housing and utilities.



Metairie company to build new Empire floodgate


The Pentagon says a Metairie company has won a $65.8 million contract to dredge a new bypass channel and build a new floodgate at Empire in Plaquemines Parish.


A list of contracts awarded Wednesday says Kiewit-Pittman JV was among six bidders for the contract with the Army Corps of Engineers.


The company will also be responsible for demolishing the present Bank Back Levee once the new one is ready.


The estimated completion date is July 27, 2017.



Education Department to ease college loan rules


The Department of Education said Thursday it will try to make it easier for students and parents with troubled credit histories to get college loans.


New rules would ease restrictions on college students seeking loans from the government's direct loan program.


The change would let people get loans more easily even if they have up to $2,085 in debt that is in collections or has been written off by creditors, and it would shorten the length of time their history of such bad debt is scrutinized from five years to two.


Currently, students with that much "adverse debt" are automatically denied, though they can appeal and get loans if they demonstrate extenuating circumstances. Such borrowers may be required to have loan counseling.


The five-year "lookback" would continue to apply to more serious credit problems like bankruptcy and foreclosure.


The department said about 370,000 more borrowers would clear the government's credit check under the new standards.


"These changes allow us to continue to be good stewards of taxpayer dollars and open the doors of college to ensure all students have the opportunity to walk through them," Education Secretary Arne Duncan said.


The current credit history rules haven't been updated since the so-called PLUS loan program was established in 1994.


The rules would also tighten the definitions of whether an applicant has loans in collection or that have been written off by creditors, which the department says will provide a fairer evaluation of whether they have a bad credit history.


The department expects to make the rules final by November, which means they would take effect for the fall of 2015.



Spying revelations lead to German encryption boom


Revelations about the National Security Agency's electronic eavesdropping capabilities have sparked anger in Germany and a boom in encryption services that make it hard for the most sophisticated spies to read emails, listen to calls or comb through texts.


Jon Callas, co-founder of Silent Circle, which sells an encryption app allowing users to talk and text in private, said a series of disclosures from former intelligence contractor Edward Snowden last year have been a boon for business.


Silent Circle is one of a host of online security companies cashing in on swarms of new security-conscious customers around the world who want to shield their communications from foreign governments — and nowhere is the market hotter than in Germany, whose chancellor, Angela Merkel, was reported to be a target.


"Germans have always been particularly attuned to security and privacy concerns," Callas said. "I think that culturally, Germany has seen privacy problems in their recent past. There are people who remember the communists. There is still a cultural sore spot over security and privacy, an understanding of what can go wrong better than any other place in the world."


The companies' customers range from diplomats and journalists to privacy advocates and people trying to protect trade secrets.


"If you're a reporter, you can talk confidentially to a source. If you're a banker, you can talk to a client. If you're a business person, you can use it in places where spying is a cultural norm," Callas said.


Although Silent Circle doesn't provide specific numbers, Callas said it saw a "huge increase" in subscriptions to its private phone and text service after Snowden's disclosures and a spike in Germany after two reported cases of suspected U.S. spying there earlier this year.


And while the technology has Silicon Valley roots, the servers are in Canada and Switzerland, two countries with strong privacy protections. Two weeks ago, Silent Circle also began selling a secure smartphone, whose first run sold out, Callas said.


At CeBIT, a leading tech industry event held annually in the German city of Hannover, Deutsche Telekom was among several companies to launch new security products on the back of Snowden's revelations.


"I want to send a personal thanks to the NSA, because we wouldn't be having this discussing if that hadn't happened," Reinhard Clemens, a Deutsche Telekom board member, told reporters. "That was the best marketing campaign we've ever had."


The company, known for its T-Mobile brand in the United States, sells a smartphone app that encrypts voice and data traffic. It was developed with Berlin-based firm GSMK, an offshoot of the German hacking group Chaos Computer Club.


Customers seeking an all-in-one solution can buy GSMK's $2,750 secure cellphone that will protect confidential communications from all but the most dedicated eavesdroppers.


Chief Executive Bjoern Rupp said his company has seen a surge of interest in its encryption technology since details of the NSA's surveillance capabilities leaked last year.


"Snowden is transforming the industry," Rupp told The Associated Press. "There is a completely new consciousness about security."


Since launching in 2003, the company has sold about 100,000 secure devices, but the number of apps sold in the past year is "in another dimension," said Rupp, without revealing a precise figure.


British rival Vodafone, meanwhile, launched its own "Secure Call" app at the CeBIT fair with the claim it would allow users to make "calls that are as secure as those of the German government."


Merkel herself used to be photographed with a Nokia slider phone. Since reports surfaced that the NSA had listed her among its foreign intelligence targets, the chancellor has avoided being seen with low-end devices. Her new gadget, as widely reported, is a top-range BlackBerry outfitted with a custom-made security suite made by German company Secusmart — endorsed for sensitive communications by Germany's Federal Office for Information Security.


Apparently seizing on the opportunity, BlackBerry recently announced it was buying Secusmart.


"The acquisition of Secusmart underscores our focus on addressing growing security costs and threats ranging from individual privacy to national security," BlackBerry CEO John Chen said in a statement.


Ravishankar Borgaonkar, who works with Telekom Innovation Laboratories and FG Security in Berlin, uses an app on his Samsung smartphone that detects how secure each call is with red and green buttons.


"I try to make my calls as secure as possible," he said. "I get paranoid about some stalker trying to look at my phone, because if they get in it they can get to all my data."


And as someone who works in tech, Borgaonkar said he's getting tapped a lot these days for help.


"All my friends who are not in technology are asking me if their phones are secure, and what they should do," he said.


For those who don't want to take any chances, the revelations have also sparked a retro trend. The country's business weekly Wirtschaftswoche recently reported typewriter sales rising for the first time in years.


German companies aiming to protect their trade secrets apparently have turned to typewriters to ensure their correspondence with foreign clients isn't intercepted by rivals capable of hacking into their computer networks.


Patrick Sensburg, a member of Merkel's conservative bloc and chair of the parliamentary committee investigating alleged NSA spying in Germany, even suggested — only half-jokingly — that he and his fellow lawmakers might start using typewriters to hide the panel's sensitive work.



Jordans reported from Berlin.


Feds: NYers cut spending slightly during recession

The Associated Press



New federal government statistics show consumer spending in New York stuttered only slightly at the end of the Great Recession after more than a decade of year-over-year gains and rebounded after 2009, according to new federal government statistics released Thursday.


The preliminary U.S. Bureau of Economic Analysis numbers show there was a drop of less than 1 percent in spending per person from 2008 to 2009, compared to a decline of 2.5 percent nationally. From 2010 through 2012, the last year with available statistics, spending increased a total of 12 percent, close to the 10.7 percent national average.


The data show steady increases in spending per capita from $22,490 in 1997 to $37,764 in 2008 before dipping to $37,487 in 2009. That number was $42,043 in 2012.


The detailed statistics show New Yorkers cut back on buying durable goods during the recession, not services.


Spending on motor vehicles and parts plunged 16.6 percent from 2007 to 2009 before recovering 26 percent by the end of 2012. Purchases of home furnishings and appliances dropped 9.5 percent over the same time, and had recovered 17 percent.


Consumption of services increased 6.8 percent from 2007 through 2009, led by growing spending on housing, utilities and health care. Spending on services continued to grow through 2012.


The numbers aren't adjusted for inflation, which grew 43 percent nationally from 1997 through 2012, so they reflect higher costs for many goods and services. Another consideration is the volatility of a commodity like gasoline, which fell dramatically in price during 2008 and 2009.


Nationally, growth was slowest in states hit hardest by the housing collapse and strongest in states with strong oil and gas drilling economies.