Wednesday, 13 August 2014

French economy stagnates in 2nd quarter


France's economy stagnated in the second quarter, leaving President Francois Hollande increasingly desperate to fulfill his two-year-old pledge to get the country growing again.


National statistics agench INSEE reported Thursday that the eurozone's second-largest economy posted zero growth for the second straight quarter.


Finance Minister Michel Sapin immediately acknowledged that the goverment's forecast of 1 percent growth this year would now be impossible to reach. In an op-ed published on the website of French daily Le Monde, Sapin said: "This year GDP growth will be around 0.5 percent, and nothing currently allows us to expect growth much above 1 percent in 2015."



Some tracks change rules after Ward's death


NASCAR could issue an edict as early as this weekend's race at Michigan International Speedway that makes it mandatory for drivers to stay in their cars until safety personnel arrive.


Tracks around the country have changed their rules in the wake of Kevin Ward Jr.'s death in a sprint car race.


Ward was sent into the wall when his car was bumped by Tony Stewart's in a dirt-track race on Saturday night in Canandaigua. Ward got out of the car and walked onto the track, where he was hit by Stewart.


Brewerton Speedway and Fulton Speedway, New York dirt tracks under the same management, announced new rules that drivers would be required to stay in their cars during an accident.


"If a driver, for whatever reason, exits a car on the track during a caution period, the race will automatically be placed under a red flag and all cars will come to a complete stop," a news release on the tracks' website says. "A driver may exit a car if requested by a safety crew member or if safety warrants in cases such as a fire. Drivers that exit a car without permission, for whatever reason, are subject to fine and/or suspension at the discretion of track management."


Brad Keselowski, the 2012 Sprint Cup champion, said it could be tough for NASCAR to enforce a similar rule.


"I'm not aware of any rule or law that works without the ability to enforce it," he said. "I don't know how you can enforce a rule like that unless you had a robot on the track to grab the person and put them back in the car. The only way you can enforce it is with a penalty system afterwards. Really, at that point, it's not effective. It's a difficult rule to try to make work."


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POWER UP: Will Power has been here before.


For the third time in five seasons, Power sits atop the IndyCar series points standings with just three races to go. But Power's title hopes were dashed in both 2010 and 2012 as part of a three-year stretch of second-place finishes for the Australian driver.


Still, Power enters this weekend's race at Milwaukee in position for his first series championship — though his lead is razor-thin. He sits just four points ahead of Penske teammate Helio Castroneves in the closest title chase at this point in the season since 2009.


"In a funny way, it's still kind of early considering how many points are on the table," Power said.


Power certainly appears to be peaking after a mid-season slump.


Power limped away from Iowa after finishing a season-worst 14th, his fourth race in a row outside the top 10. But Power bounced back with ninth, third and sixth-place finishes and overtook Castroneves — at least for now.


Power feels confident at each of three remaining tracks, Milwaukee, the road course at Sonoma and the oval at Fontana, but is more focused on the race ahead of him than the big picture.


"It's probably time to start thinking about winning," Power said. "At the end of the day, if you win two of the last three races — or you win all three, obviously, you're going to win the championship."


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NEW SPONSOR FOR BIFFLE: Greg Biffle said Roush-Fenway Racing is set to announce a new sponsor for the No. 16 in the wake of 3M's defection to Hendrick Motorsports.


3M reached a three-year deal with HMS this week and will serve as Jeff Gordon's primary sponsor for 11 races a season starting in 2015. 3M will serve as the associate sponsor for Gordon's No. 24 Chevrolet in all other races from 2015-17.


Biffle said he was appreciative of 3M's sponsorship through the years.


"It's been a great 10 years we've had together," he said Wednesday. "We've got a few partners moving forward. It's going to be a great thing for the 16 car. I appreciate the support from all the fans of the 16 team and all of the 3M employees. They've been behind this program forever and I've made a lot of friendships and those will remain without a doubt moving forward."


Biffle said the new sponsor could be announced in a few weeks after the final contract details are set.


Biffle recently signed a three-year extension with RFR. Biffle has 19 career Sprint Cup victories, along with Truck and Nationwide Series championships, and was the 2005 Cup runner-up driving for Jack Roush. The 44-year-old Biffle has spent his entire 12-year career with Roush.


"My decision was to stay loyal to a brand — and stay loyal to Jack — that had provided me opportunities along the way," Biffle said. "It's been a great relationship and we were hopeful and were under the impression that 3M would return. But we understand that management changes and there are business decisions to be made."


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HEARTBROKEN BROWN: If anyone knows how sprint car driver Brian Brown feels after finishing second at the Knoxville Nationals, it's Donny Schatz — the guy Brown lost to for the third year in a row.


Schatz held off a charging Brown to win last weekend's Knoxville Nationals, the so-called "Super Bowl" of sprint car racing, for the eighth time in nine years.


But before Schatz owned Knoxville, he had to learn to deal with defeat on the famed half-mile dirt track in rural Iowa. Schatz was second four times before winning his first title in 2006.


Brown passed Schatz for the lead with seven laps left in the 50-lap event on Saturday. But Schatz overtook Brown two laps later by slipping to the bottom of the track for a line that proved more sustainable.


"That's what racing is all about, trying to make the right decisions. I made a wrong decision and Brian went by, and he made a wrong decision and I went back by," Schatz said.


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C-A-R-L-Z-O-U: Carl Edwards, who grew up in Columbia, Missouri and remains a passionate fan of the Mizzou Tigers, will be featured Thursday in a new documentary, "The Stars Are Aligned," on the SEC Network.


The film features 14 celebrities discussing their favorite SEC teams. Edwards talks about his love of the Tigers, their basketball program and how his fandom was passed down by his stepfather.



AP Sports Writer Dan Gelston contributed to this report.


Hal Steinbrenner expects Yankees to 'step it up'


Sounding much like his late father, Yankees owner Hal Steinbrenner said his team's offense has to snap out of its funk and he's optimistic New York will return to the playoffs after a one-year absence.


Steinbrenner spoke at Major League Baseball's owners meetings before New York wasted a two-run lead in a 5-3 loss to the first-place Baltimore Orioles at Camden Yards, a few blocks away.


The third-place Yankees dropped a season-high eight games off the AL East lead and fell 3½ games behind in the race for the AL's second wild card.


Even before the loss, Steinbrenner was especially disappointed with New York's batters.


"They've got to step it up, and they know it," he said.


New York began the night tied for 19th with 471 runs, a disappointment given the offseason additions of Jacoby Ellsbury, Brian McCann and Carlos Beltran. Steinbrenner said the inconsistency "needs to change."


The Yankees' starting rotation has been decimated by injuries to Masahiro Tanaka, CC Sabathia, Ivan Nova and Michael Pineda, who returned Wednesday to make his first big league appearance since April 23. Pineda was suspended for 10 games for using a foreign substance, then injured a right shoulder muscle.


"The injuries have been as frustrating as they were last year," Steinbrenner said. "'When you lose four of your starting pitchers by the All-Star game ... it's going to have an impact."


New York dropped to 61-58, one fewer win than after 119 games last season. The Yankees finished fourth last year at 85-77, their poorest record since 1992.


Steinbrenner said there remains time for a late-season spurt.


"I am confident," he said.


But time is running out.


"I think we were more looking at the second wild-card spot. That's a little bit better number that seems a little more achievable at this point," said Shawn Kelley, who allowed a tiebreaking, three-run homer to Adam Jones in Baltimore's four-run eighth.


Yankees captain Derek Jeter remained ever confident.


"We play the people that are in front of us," he said. "You worry about things when you don't have control of them. We have control over what happens. We're not making it easy on ourselves."


Steinbrenner said he will wait until after the season to turn his attention to a new deal for Brian Cashman, whose contract is expiring. Cashman has been the Yankees' general manager since 1998.


Steinbrenner expects Alex Rodriguez will return to the Yankees next season after serving his one-year suspension for using banned performance-enhancing drugs.


"That's what he's planning for. That's what we're planning for," Steinbrenner said. "Alex will be ready."


Rodriguez, who turns 40 next July, is owed $61 million over the next three seasons.



FBI agent testifies about ex-governor's debts


Former Virginia Gov. Bob McDonnell and his wife, Maureen, were swamped with heavy credit card debt and money-losing real estate investments when they turned to a wealthy businessman for financial help, an FBI agent testified Wednesday.


Prosecutors in the McDonnells' public corruption trial called agent David Hulser to the stand to bolster their claim that the defendants were in dire financial straits when they began doing favors for former Star Scientific CEO Jonnie Williams in exchange for more than $165,000 in gifts and secret loans.


The McDonnells are charged in a 14-count indictment with accepting the gifts and loans from Williams in exchange for helping him promote his company's products, primarily Anatabloc.


Hulser testified that the McDonnells owed nearly $75,000 on credit cards when the governor was inaugurated in January 2010. The debt increased to more than $90,000 by September 2010 before falling to just over $31,000 in April 2011, after Maureen McDonnell used some money from an inheritance to pay down the debt.


Financial records obtained by Hulser also showed that Maureen McDonnell made several credit card payments in May 2011, including $9,900 to one card held by her husband, within a couple of days after receiving a $50,000 loan from Williams and an additional $15,000 to cover catering costs for a daughter's wedding.


Hulser also analyzed financial records of two Virginia Beach rental properties owned by Bob McDonnell and his sister. Expenses exceeded rental income by about $43,000 in 2009 and $40,000 in 2010, he said.


Along with the financial records, Hulser presented detailed charts showing cellphone calls and text messages among the McDonnells and Williams around the time of meetings, free vacations, golf outings, a Manhattan shopping spree and other events that other witnesses have discussed since the trial began July 28.


Evidence also was introduced Wednesday showing that McDonnell revised a mortgage refinance application to disclose two loans from Williams three days after state police questioned his wife about the debts.


Nanette Bolt, a mortgage supervisor for Pentagon Federal Credit Union, testified that she was not surprised to see the undocumented loans totaling $120,000 added to McDonnell's loan application on Feb. 18, 2013. She also said McDonnell never mentioned to her that his wife had just been interviewed by investigators who asked about loans from Williams.


The charges against the McDonnells include two counts of submitting fraudulent documents to financial institutions.


The McDonnells were seeking to refinance loans on four properties — their primary residence in suburban Richmond, a second home in the Blue Ridge Mountains and the two beach houses — with the credit union known informally as PenFed.


An initial application did not list the Williams loans as a liability, nor did it disclose ownership of Star Scientific stock that also was added to the revised application. Prosecutors say McDonnell tried to conceal the loans and the stock, disclosing them only after police started asking questions.


But the former governor's attorney, John Brownlee, noted that McDonnell also added about $243,000 in assets — including an individual retirement account, a life insurance policy and a 2005 Toyota — when he submitted the revised application.


"Is it fair to say you were not surprised to see these edits?" Brownlee asked.


"Correct," Bolt said.


She also testified that the Williams loans were not reflected in the credit union's closing documents because McDonnell had indicated that no payments were due until 2015.


Virginia Beach Mayor William Sessoms, president of TowneBank's parent company, also testified that McDonnell never mentioned the Williams loans in an application to refinance a loan with his institution.


Sessoms said loans to a spouse or to a corporation do not have to be listed on an individual borrower's financial statement. However, in reply to a question from U.S. District Judge James Spencer, Sessoms acknowledged that bank officials need to know about any borrower's shared debts.


Assistant U.S. Attorney Michael Dry said prosecutors expect to wrap up their case Thursday. If that happens, Spencer said the jury will be given the day off Friday and begin hearing from defense witnesses next week.



Mainland helps monitor Hawaii quakes, eruptions


U.S. Geographical Service outposts in other states are helping monitor Hawaii's volcanoes and earthquakes while work is done to repair Tropical Storm Iselle's damage to the Hawaiian Volcano Observatory.


Violent winds slammed the observatory early Friday, causing power problems and other damage to the computer system. The problems have caused disruptions to eruption updates, webcam imagery, earthquake data and other information normally available on the observatory's website, the Honolulu Star-Advertiser reported (http://ow.ly/Aigfc).


Officials say complete restoration of the station perched on the rim of Kilauea Caldera at Hawaii Volcanoes National Park is expected this week. In the meantime, the National Earthquake Information Center in Golden, Colorado, is tracking Hawaii's larger earthquakes, while USGS volcanologists in Alaska and Virginia are keeping watch via satellite imagery.


Winds also damaged 10 monitoring field instruments, said Kevan Kamibayashi, chief technician. A technician carrying a replacement part to repair a blown-out control circuit board was expected to arrive Wednesday, he said.


Crews had to use a helicopter Tuesday to reach and repair a radio repeater site on the east slope of Mauna Loa that workers normally are able to drive to. A tree lying across the road cut off access, officials said.


The observatory staff "includes a very capable technical support group, which has designed our field sites to withstand hurricane-force winds and Hilo-style rains, and their efforts have really paid off," said scientist-in-charge Jim Kauahikaua.


If scientists observe any significant change in volcanic or seismic activity, the observatory will notify Hawaii County Civil Defense and other emergency responders.



3 teens arrested, charged in Oahu armed robberies


A 19-year-old mastermind of armed robberies at a recycling center and three Oahu banks used part of the nearly $41,000 stolen on dental work, according to an FBI affidavit filed in federal court.


Marcus Kalani Watson, also known as Kiki Seui, pointed a pistol at the chest of a Reynolds Recycling worker and threatened to shoot him after the worker threw cash on the ground during the April 22 robbery, court documents show an informant told the FBI.


Two days later, Watson posted a photo of himself on Facebook holding a large amount of cash, the FBI said.


The worker "was the one acting tough," Watson told the informant, according to the FBI. "He almost got shot right in the chest. ... I cocked the gun. I aimed it right at him."


Watson also is accused of holding up tellers at the Wahiawa branch of Central Pacific Bank and the Pearlridge and Salt Lake branches of American Savings Bank in May. Rogussia Eddie Allen Danielson, 19, was involved in the American Savings Bank robberies, while AJ Williander, 18, was the getaway driver in the Pearlridge branch robbery, the FBI said.


Watson's federal public defender, Salina Althof, and Williander's attorney, Andrew Park, declined to comment. Danielson's attorney didn't immediately return a call Wednesday.


The informant, who passed a lie-detector test, told agents that Watson used some of the stolen money to buy an old $2,000 Lexus and get dental work. The officer manager of a Honolulu dental office told agents that on May 8, Watson paid $2,810 in cash for a root canal.


Watson was arrested Tuesday at the Honolulu International Airport after getting off a flight from Oakland, California, Honolulu police and the FBI said. Williander, who was at the airport to pick up Watson, also was arrested, the Honolulu Star-Advertiser reported. Danielson was arrested at his home.


They appeared in federal court Wednesday in separate hearings on the robbery charges. Detention hearings are scheduled for next week.



Follow Jennifer Sinco Kelleher at http://bit.ly/1oWOkcN .


Lebanon's Arabic press digest – Aug. 14, 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.


Al-Mustaqbal


Kahwagi fears dead among missing troops


Lebanese Army commander Gen. Jean Kahwagi said the missing soldiers in the Arsal battle were 20 and voiced fears that some of them may have been killed.


“The number of missing soldiers stands at 20. The Army Command preferred to refer to them as ‘missing’ for fear to find martyrs among them,” Kahwagi told Al-Mustaqbal.


“And this is exactly what happened. We found the body of a soldier and the militants showed the body of another who were among the missing,” he added.


As-Safir


The issue of captive soldiers at the crossroad


The issue of captive soldiers is at the crossroads. Either they are quickly released or their return may take a long time similar to the Azaz hostage ordeal.


More to follow ...






Related Articles




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  • Kahwagi: Army saved Lebanon from jihadist state




  • ISIS delivers video of captured soldiers




  • Kahwagi: Army will do utmost to free hostages




  • Kahwagi says militant attack in Arsal was premeditated








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US victims of Hamas terror attacks go after bank


Steve Averbach was seated on a packed commuter bus in Jerusalem in 2003 when a Hamas suicide bomber disguised as an Orthodox Jew set off an explosion that left the New Jersey native paralyzed.


More than a decade later, Averbach's family — he died in 2010 — and about 140 other American victims of two dozen terror attacks in Israel, Gaza and the West Bank during a Palestinian uprising from 2001 to 2004 want the Jordon-based Arab Bank to pay a price as well.


A civil trial that's set to begin Thursday in federal court in Brooklyn will see the victims try to convince a jury that the bank helped Hamas finance a "death and dismemberment benefit plan" for martyrs. It comes after a lengthy legal battle over what evidence jurors will see and amid a backdrop of renewed hostilities between Israelis and Palestinians.


Lawyers for the plaintiffs call it the first terrorism financing case to go to trial in the United States and say it could result in the bank paying unspecified damages. Arab Bank, which has hundreds of branches around the world, including in New York and in the Palestinian territories, has denied it knew it was doing business with terrorists when it processed electronic transfers.


"Arab Bank has great sympathy for all victims of terrorism but is not liable for the tragic acts described by plaintiffs," it said in a statement.


A lawsuit filed in 2004 accused the bank of violating the U.S. Anti-Terrorism Act, which allows victims of U.S.-designated foreign terrorist organizations to seek compensation. The U.S. State Department designated Hamas a terrorist group in 1997.


The suit accuses Arab Bank of setting up accounts to channel funds from an organization run by the Saudi government, the Saudi Committee for Supporting Al Quds Intifada, to at least two militant groups, Hamas and Palestinian Islamic Jihad. It also alleges that bank officials were aware that the funds were for an insurance program that provided a standard benefit worth more than $5,000 to the families of Palestinians who were killed in attacks on Israel, including suicide bombers.


The case had stalled in recent years as the bank fought demands that it turn over customer account information and other financial records, arguing that doing so would violate banking secrecy laws in Jordan and elsewhere. In 2010, a judge issued sanctions against the bank for its "recalcitrance" in withholding evidence — a penalty that would allow the court to instruct the jury that it could infer that it knowingly worked with terrorist organizations.


The ruling was later upheld by an appeals court. When Arab Bank asked the Supreme Court to intervene, the court sought the U.S. government's input on whether it should hear the case — a request that reportedly created a dilemma for President Barack Obama's administration on how to respond in way that wouldn't harm diplomatic relations with Jordan.


A brief filed by Solicitor General Donald B. Verrilli Jr. described the Arab Bank as "a constructive partner with the United States in working to prevent terrorist financing" and "a leading participant in a number of regional forums on anti-money laundering and combating the financing of terrorism." But Verrilli concluded the Supreme Court should not intervene and should let the case play out, and the court agreed.


Another federal judge in the same Brooklyn courthouse threw out the case of a U.S. man wounded in the Middle East who sought to hold Arab Bank liable for providing material support to Hamas.


"Moral blame should only follow if the harm caused by providing bank services to terrorists is foreseeable," U.S. District Judge Jack Weinstein wrote. He added: "Hamas is not the defendant; the bank is. And the evidence does not prove that the bank acted with an improper state of mind or proximately caused plaintiff's injury."



Vets in workforce ramp up as military gears down

The Associated Press



About 1,200 soldiers were ordered and urged by Fort Bragg brass to prepare Wednesday for their future mission: transition to a civilian job.


This sprawling Army post was part of an expanding effort to help soon-to-be veterans as the American military downsizes with the end of wars in Iraq and Afghanistan. Airborne soldiers in maroon berets and corporals in camouflage uniforms prepared for the end of their military careers by meeting civilian employers, learning to interview and write resumes, and scouting the benefits available to veterans starting the rest of their lives.


The two-day transition summit was the third in a series at Army bases this year organized by the U.S. Chamber of Commerce Foundation, the Pentagon and the departments of Veterans Affairs and Labor.


"Every one of us is going to retire. The Army is not our only life," said Maj. Gen. Clarence K.K. Chin, Fort Bragg's interim commander. "The challenge is education. It's all free. It's their taxpayer dollars at work. But you can't use it if you don't know."


About 8,500 of Fort Bragg's 57,000 soldiers leave for civilian life every year, Chinn said, and the pressure to help them find work is increasing as the Army faces one of the deepest draw-downs since World War II. The Army plans to reduce its fighting force from a high of about 570,000 at the peak of the Iraq war to 490,000.


The national unemployment rate for all veterans over 18 was 6 percent in July, slightly below the 6.2 percent jobless rate for all workers. But conditions are hard for newer vets. The jobless rate for veterans who served since 2001 dipped last year to 9 percent, according to an annual report by the Labor Department released in March. For young veterans between 18 and 24, the unemployment rate in 2013 was a very high 21.4 percent.


Lt. Mary Kolars, 26, of Rochester, Minnesota, graduated from officer candidate school in the four years since she joined the Army. But even officers face being forced out of a military career, so she wanted to be ready.


"You definitely don't want to be caught unprepared. Downsizing is on a lot of people's minds. That's definitely one of the reasons why these transition workshops have become such a big thing," she said.


Recruiters for Duke Energy Inc. were on the hunt for soldiers with scientific, technical and management experience to fill dozens of open jobs from accounting to nuclear plant maintenance. Former Navy nuclear engineer Jim Louy and Steve Moore, a former artilleryman, helped service members explain their military skills to human resources colleagues at the nation's largest electricity company. A background in artillery means a soldier is accustomed to working outdoors and loud noises, so working at a power plant or on transmission lines could be a good fit, Louy said.


"Generating power, at the end of the day, it's a boots-on-the-ground, turning wrenches, get-your-fingernails-dirty job every day. So those people who understand technical skills, who can read and translate what they've read into an actionable item, those are the skill-sets that work great," Louy said.



Appeals court OKs permits for Upper Peninsula mine


The Michigan Court of Appeals on Wednesday upheld a decision by state regulators to allow construction of a nickel and copper mine in the Upper Peninsula backwoods, the latest development in a 12-year legal and political struggle.


A three-judge panel ruled unanimously that the Department of Environmental Quality was within the law to approve mining and groundwater discharge permits for the Eagle Mine in Marquette County. Kennecott Minerals Co. began the project but its present owner is Toronto-based Lundin Mining Corp.


Environmental groups, a Native American tribe and a private hunting and fishing club have fought to prevent the mine from being built since Kennecott conducted exploratory drilling in 2002, saying it poses numerous ecological risks. The department issued the permits five years later, a decision upheld by an administrative law judge and a circuit court before the appeals court took the case.


"Today's ruling validates the MDEQ's thorough and extensive permitting review process, which ensures responsible development with strong environmental protections," said Dan Blondeau, spokesman for the mining company.


A spokesman for the National Wildlife Federation, one of the groups that challenged the permits, said no decision had been made about whether to appeal to the Michigan Supreme Court. But with the mine now constructed, production scheduled to begin later this year and no other legal challenges pending, the issue may be largely moot.


The $800 million project will provide 330 jobs during production. It will be the only U.S. mine where nickel is the primary targeted mineral, with about 360 million pounds to be extracted. Nickel is a base metal used to make stainless steel.


Michelle Halley, an attorney who represented the federation during its appeals, said the ruling "still comes as a surprise, because the facts and the science and the law still line up on the other side. I'm not naive, but somewhere along the line here some court should realize that."


In their written opinion, Judges Mark Cavanagh, Donald Owens and Cynthia Stephens said the case "reflects the attempt to balance the potentially conflicting imperatives of exploiting a great economic opportunity and protecting the environment, natural resources and public health."


They repeatedly sided with the DEQ on issues raised by the wildlife federation, the Huron Mountain Club, the Keweenaw Bay Indian Community and the Yellow Dog Watershed Preserve. The opponents contend the mine poses a serious risk to groundwater and the Salmon Trout River, a pristine stream directly above part of the underground mine chamber.


If sulfide mineral ores are exposed to air and water, a chemical reaction generates acid that can pollute waters. Opponents say the mine's roof, a rock mass known technically as the "crown pillar," could collapse and enable water from the river or nearby wetlands to flow into the chamber, causing extensive acid drainage.


But the DEQ has declared the mine structurally sound, and the appeals panel agreed with the lower court that the conclusion was based on "substantial evidence."


The panel also found the company had satisfied legal requirements to show its operations would cause no damage outside the immediate mining area and that its plan for eventually filling and closing the mine included adequate measures to prevent acid rock drainage.



Grain mostly lower, livestock mixed


Grain futures were mostly lower Wednesday on the Chicago Board of Trade.


Wheat for Sept delivery fell 10 cents to $5.28 a bushel; Dec corn was .75 cent higher at 3.6975 a bushel; Dec oats were 1 cent lower at $3.3150 a bushel; while Nov soybeans fell 12.75 cents to $10.4675 a bushel.


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


Oct live cattle fell 1.12 cents to $1.4655 a pound; Sep feeder cattle was 1.10 cents lower at $2.1355 a pound; while Oct lean hogs rose .23 cent to $.9740 a pound.



Treasury takes step toward oil spill trust fund


The U.S. Treasury has set out 97 pages of rules for investing and allocating money that BP PLC and other defendants will pay in Clean Water Act fines for the Gulf of Mexico oil spill of 2010.


The rules released Wednesday formally set up a trust fund for money that state and local governments will get under the RESTORE Act and procedures for getting that money.


The total is expected to be billions of dollars, but nobody knows what it will be.


U.S. District Judge Carl Barbier has scheduled the third of three trials on the question in January.


The trust fund will get 80 percent of the Clean Water Act penalties. The rest go to a trust fund to cover the cost of future oil spills.



Projected starting QB salaries for 2014 by team


List of the projected starting quarterbacks in the NFL with their base salaries for the 2014 season:


Arizona: Carson Palmer, $9 million


Atlanta: Matt Ryan, $9.5 million


Baltimore: Joe Flacco, $6 million


Buffalo: E.J. Manuel, $808,877


Carolina: Cam Newton, $3.3 million


Chicago: Jay Cutler, $17.5 million


Cincinnati: Andy Dalton, $986,027


Cleveland: Brian Hoyer, $1 million; or Johnny Manziel, $420,000


Dallas: Tony Romo, $1 million


Denver: Peyton Manning, $15 million


Detroit: Matt Stafford, $2 million


Green Bay: Aaron Rodgers, $900,000


Houston: Ryan Fitzpatrick, $1.75 million


Indianapolis: Andrew Luck, $2.39 million


Jacksonville: Chad Henne, $1.5 million


Kansas City: Alex Smith, $7.5 million


Miami: Ryan Tannehill, $570,000


Minnesota: Mat Cassel, $2.65 million


New England: Tom Brady, $2 million


New Orleans, Drew Brees, $10.7 million


NY Giants: Eli Manning, $15.1 million


NY Jets: Geno Smith, $633,164


Oakland: Matt Schaub, $4.5 million


Philadelphia: Nick Foles, $615,000


Pittsburgh: Ben Roethlisberger, $12.1 million


San Diego: Philip Rivers, $13.8 million


San Francisco: Colin Kaepernick, $645,000


Seattle: Russell Wilson, $662,434


St. Louis: Sam Bradford, $14 million


Tampa Bay: Josh McCown, $3.7 million


Tennessee: Jake Locker, $2.09 million


Washington: Robert Griffin III, $2.3 million


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Source: The NFL Players Association


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Online:


AP NFL website: www.pro32.ap.org and http://bit.ly/1f8IcYq



You too can be a Broadway producer with just $10K


The lead producers behind the 1940s song-and-dance Broadway revival of "On the Town" are offering a modern twist for its financing: accredited folk can buy a part of it for as little as $10,000.


Producers Howard and Janet Kagan hope their creation of a new online investment site will attract people who want to invest in the $8.5 million show and maybe stick around to infuse the ranks of Broadway producers with new blood.


"The idea is to identify people who we wouldn't otherwise know that want to invest in theater, and they might become a tradition kind of investor for the next show," Kagan said Wednesday. "This will allow us to reach out to a new universe of potential investors."


Kagan said the new approach takes advantage of recent changes to federal regulations that encourage capital formation for small and medium businesses.


The Kagans' Maxolev Productions have launched a new automated online portal as part of its outreach effort and hope to take advantage of the elimination on the ban on "general solicitation," meaning it can seek accredited investors outside the smallish pool of current Broadway investors.


Unlike crowdsourcing sites, the new investors will get equity in the Broadway show and some of the perks that go along with that. They also assume the risk of investing in a show and that is still risky — seven of 10 usually fail to make their investment back.


"On the Town," about three sailors on shore leave in New York City, was picked to be the guinea pig this time because it's the first of the Kagans' current shows to make it to Broadway. "Whichever show is next, we'll use it for that as well," Kagan said.


The Kagans won the Tony Award for best revival of a musical for in 2013 for "Pippin" and in 2012 for "The Gershwins' Porgy and Bess" starring Audra MacDonald. Their other shows include "Hands on a Hardbody" and "The Anarchist."


Kagan said he picked the $10,000 figure because it is at the low end of typical Broadway investing but not so low that "it was like using your credit card to buy an airplane ticket. It is an investment. We want people to view it that way."


The federal Securities and Exchange Commission defines an accredited investor in several ways, including a person who has individual net worth, or joint net worth with their spouse, that exceeds $1 million, and a business in which all the equity owners are accredited investors. Kagan said he would consider the new system successful if it attracts $1 million of the show's total cost.


"On the Town," which was last on Broadway in 1998, also was made into a 1949 film starring Gene Kelly and Frank Sinatra. It features the songs "New York, New York," "I Can Cook Too," "Lonely Town," and "Some Other Time." In the show, the three sailors jump around the city looking for love before having to return to their ship.


Kagan said the democracy of the new investment tool was fitting for the upcoming show: "It actually is a particularly appropriate show to do this with because I think 'On the Town' has broad appeal, it's a show that appeals to lots of different age groups and audiences, it's a known title because of the movie, so in that respect I think it's a good show to start with."


The new revival, which starts previews Sept. 20 at the newly named Lyric Theatre, will be directed by John Rando, who won a Tony for helming "Urinetown." It also will feature choreography by Joshua Bergasse, an Emmy Award winner for "Smash." Both men teamed up for a version of the show last year at the Barrington Stage Company.


---


Online: http://bit.ly/1vKBHIS



Group challenges immunity for pesticide sprayers


A group of people whose families, homes and pets came under a cloud of herbicides meant for neighboring timberlands is challenging the constitutionality of the Oregon Right to Farm and Forest Act.


The lawsuit filed Wednesday in Curry County Circuit Court in Gold Beach argues that immunity the law grants to pesticide sprayers treating farms and forests violates the Oregon Constitution's guarantee of the right to seek a legal remedy to violations of property rights.


"If you are a commercial farmer and your corps are sprayed, you can sue the person who sprayed your crops for damages," said attorney Chris Winter of Crag Law Center in Portland, which is representing the plaintiffs. "But if you are just a regular person, if you get sprayed, or your pets get sprayed, you can't sue the person who sprayed those pesticides."


The law carries an extra deterrent to lawsuits, by awarding legal fees to defendants who claim immunity, Winter said.


The lawsuit was brought by 17 residents of the Cedar Valley area north of Gold Beach, who were victims last fall of herbicides meant for neighboring timberlands. People reported respiratory problems, headaches, balance problems, swelling of eyes and hands, and stomach cramps. The lawsuit seeks a ruling that the immunity granted to pesticide applicators is unconstitutional. It also asks a judge to bar defendants from claiming immunity and to award unspecified damages.


"We have the right to defend our families and our private property from chemical trespass," John Burns, an assistant chief of the local volunteer fire department and one of the plaintiffs, said in a written statement. "Nobody should have to live through what we've experienced over the past several months. These irresponsible practices are making us sick, killing our pets and interfering with the use of our land."


The lawsuit was filed against the pesticide applicator, Pacific Air Research Inc. of White City; timberlands owners Crook Timberlands LLC of Coos Bay and Joseph Kaufman of Gold Beach; the Barnes and Associates logging company of Roseburg; and Pro Forestry Consulting LLC of Coos Bay.


Defendants did not immediately return telephone calls seeking comment.


In April, the Oregon Department of Agriculture determined the Pacific Air Research helicopter pilot "more than likely" allowed herbicides to fall over the homes as it flew to spray neighboring timberlands. But it reached no conclusions about whether the small amounts found on the ground accounted for people's health complaints.


This week, the department fined Pacific Air Research and applicator Steven Owen $10,000 each and suspended their pesticide licenses for a year for providing false information that misled investigators.


All 50 states protect the right to farm. Oregon's law was last revised in 1993 and 1995. It was challenged once before by some residents of the Triangle Lake area of Lane County who complained they were made sick by herbicides sprayed over neighboring timberlands. The Oregon Court of Appeals dismissed their lawsuit against the state on a technicality.


Oregonians for Food and Shelter executive director Scott Dahlman said the law was enacted to stop newcomers in rural areas from suing over accepted farm and forestry practices.


"If it were overturned, I think there would be very devastating consequences," he said.



Bank of Korea cuts key rate for 1st in 15 months


South Korea's central bank cut its key interest rate for the first time in 15 months on Thursday, giving the government support to stimulate the economy dragged down by the shock of a ferry sinking.


Bank of Korea lowered its policy rate by a quarter of a percentage point to 2.25 percent for August. The bank had kept the rate unchanged since a rate cut in May 2013.


Most analysts had predicted the bank would lower borrowing costs to boost consumer sentiment, which was hurt by the shock from a deadly ferry sinking in spring. The sinking of Sewol ferry in April left 304 people, mostly teenagers on a school trip, dead and sent shockwaves to the nation for months. Consumer spending turned negative in the April-June quarter to the worst level in nearly three years.


Last month, Bank of Korea and the Finance Ministry lowered their growth outlooks for Asia's fourth-largest economy. According to the central bank, South Korea's economy will likely expand 3.8 percent this year instead of 4.0 percent while the finance ministry predicted 3.7 percent growth, revised down from the previous forecast of 3.9 percent.


Weak domestic spending has been a source of concern for policymakers. To encourage spending by consumers and companies, South Korea's new finance minister unveiled last month stimulus plans that included easing mortgage rules to stimulate the housing market. The government also announced a new tax policy to encourage companies to pay more dividends to investors and raise wages.


The central bank was expected to aid the government's stimulus moves as low inflationary pressure gave room for further easing.



BC-Cash Prices, 1st Ld-Writethru,0334


Wholesale cash prices Wednesday:


    Wed.       Tue.


F


 Broilers FOB Ga. ice-packed lb. wtd av  111.84     111.84


 Eggs large white NY Doz.    1.21       1.21


 Flour hard winter KC cwt   17.50      17.50


 Cheddar Cheese Chi. 40 block per lb.  2.6175     2.5150


 Coffee parana ex-dock NY per lb.  1.8335     1.8335


 Coffee medlin ex-dock NY per lb.  2.1251     2.1251


 Cocoa beans Ivory Coast $ metric ton   3613        3613


 Cocoa butter African styl $ met ton   8554        8554


 Hogs Iowa/Minn barrows & gilts wtd av  107.46     110.46


 Feeder cattle 550-600 lb Okl av cwt  258.75     258.75


 Pork loins 13-19 lb FOB Omaha av cwt  153.43     159.01


 Corn No. 2 yellow Chi processor bid  3.78        3.83½


 Soybeans No. 1 yellow 11.71¾      11.84½


 Soybean Meal Cen Ill 48pct protein-ton 430.70      430.70


 Wheat No. 2 Chi soft  5.23        5.33 


 Wheat N. 1 dk 14pc-pro Mpls.  7.64½       7.69 


 Oats No. 2 heavy or Better  3.76½       3.77½


 Corn oil crude wet/dry mill Chi. lb.  .38          .38 


 Soybean oil crude Decatur lb.  .353/8         .353/8


 Aluminum per lb LME  .9252       .9216


 Antimony in warehouse per ton   9810        9810


 Copper Cathode full plate 3.1866      3.1797


 Gold Handy & Harman 1312.00    1315.75


 Silver Handy & Harman 19.770      20.025


 Lead per metric ton LME 2260.00    2248.00


 Platinum per troy oz. Handy & Harman 1471.00    1473.00


 Platinum Merc spot per troy oz. 1469.90    1472.20


 Zinc (HG) delivered per lb.  1.0563     1.0473


 Cotton 1-1-16 in. strict low middling   63.76      63.06


 Coal Central Appalachia $ per short ton   56.35      56.35


 Natural Gas Henry Hub, $ per mmbtu   3.870      3.931


b-bid a-asked


n-Nominal


r-revised.


n.q.-not quoted


n.a.-not available<4



Grain mostly lower, livestock mixed


Grain futures were mostly lower Wednesday on the Chicago Board of Trade.


Wheat for Sept delivery fell 10 cents to $5.28 a bushel; Dec corn was .75 cent higher at 3.6975 a bushel; Dec oats were 1 cent lower at $3.3150 a bushel; while Nov soybeans fell 12.75 cents to $10.4675 a bushel.


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


Oct live cattle fell 1.12 cents to $1.4655 a pound; Sep feeder cattle was 1.10 cents lower at $2.1355 a pound; while Oct lean hogs rose .23 cent to $.9740 a pound.



Raytheon pays feds for ineligible meal expenses


Raytheon has agreed to pay $350,000 to the federal government for charging the Department of Defense for ineligible meal expenses.


Carmen Ortiz, the U.S. attorney for Massachusetts, said in a statement Wednesday that the Waltham-based defense contractor submitted expenses for "group meals, business group meals and group meals at conference events" that were ineligible for federal reimbursement from 2007 to 2009.


Spokeswoman Pamela Erickson said in an email that Raytheon is pleased that the matter is resolved.



What You Missed: A Field Trip to the White House Kitchen Garden


White House Executive Chef Cris Comerford took Maker Camp campers on a virtual field trip of the White House Kitchen Garden

White House Executive Chef Cris Comerford joins Maker Camp campers for a virtual field trip of the White House Kitchen Garden.




Earlier today, White House Executive Chef Cris Comerford took Maker Camp campers on a virtual field trip of the White House Kitchen Garden, and answered questions about what it’s like to cook for the First Family and for special guests of the White House.


Campers from across the country chimed in and asked how Chef Comerford balances what fruits and vegetables are in season with the needs of the First Family, how the White House chefs prepare for large events such as state dinners, and finally about her path to becoming a “maker” at the White House. Comerford said that each morning she looks in the White House Garden to see what is ready to harvest and that she changes the menu based on what she can incorporate into upcoming meals. She also said that canning, jarring and pickling gives her flexibility to use fruits and vegetables in future meals.


read more


Ohio casinos want slots in smoking areas


Ohio's casinos are planning to ensure gamblers can still feed the slot machines during their smoke breaks.


Major casinos in Cincinnati, Columbus and Toledo want to install slot machines in designated smoking areas while keeping their main gambling floors smoke-free.


Cincinnati's downtown casino proposed plans to install about 150 slot machines and other gambling devices on a nearly 10,000-square-foot smoking deck now under construction, according to The Cincinnati Enquirer (http://cin.ci/1q82x56).


Officials with the Columbus and Toledo casinos are also working on installing slot machines to their smoking decks.


Ohio's smoking ban has been seen as a competitive advantage to three riverboat casinos in southeast Indiana, where smoking is allowed.


Bob Tenenbaum, spokesman for Penn National Gaming Inc., which operates the Columbus and Toledo casinos, said that adding smoking areas for gamblers "is a way to meet customer demand."


Regulators with the Ohio Casino Control Commission said they are reviewing the Cincinnati casino's proposal and will approve it as long as it meets requirements.


All five of Ohio's racinos have at least a few slots in smoking areas, but the scope of the Cincinnati casino's proposed gambling area for smokers is larger than anything currently in the state.


One-third of Ohio casino gambling revenue goes to the state in taxes. The Cincinnati casino could generate an additional $10 million in annual gambling revenue with the added slot machines if they generate the property's average $175 daily unit revenue.



Burger King nixes lower-calorie 'Satisfries'


Burger King is getting rid of its lower-calorie french fries at most restaurants after less than a year.


The Miami-based chain said in a statement that it gave its franchisees the option to continue selling the french fries earlier this week. Only about 2,500 of the approximately 7,400 locations in the U.S. and Canada opted to continue selling them as a permanent item. The others have started phasing them out.


The french fries, called "Satisfries," were a big bet for Burger King when they were announced in September. But they weren't as well received as Burger King had hoped.


The name was mocked in some corners, with one website referring to them as "Saddest Fries." There also is some confusion about their caloric superiority, with a small order still containing 270 calories. A small order of McDonald's fries, by comparison, has 230 calories because the serving weighs less.


Satisfries also are pricier, costing about $1.89 for a small order, compared with a $1.59 for regular fries.


And it's unclear whether customers were aware what made the fries lower in calories. Burger King said Satisfries used a different type of batter to prevent some oil from being absorbed by the potatoes during frying. But the company did not have signs in restaurants explaining the difference between Satisfries and regular fries.


It's just one of the gambits by Burger King since investment firm 3G Capital took it public again 2012. Other moves have included the return of the "Big King," which resembles a Big Mac and a "French Fry Burger," which is essentially a burger with four french fries smashed on top.


The efforts haven't yet sparked any big sales gains at a time when traditional fast-food chains are struggling. In the latest quarter, sales at established restaurants in the U.S. and Canada edged up just 0.4 percent.


This week, Burger King Worldwide Inc. also announced the return of "Chicken Fries" for a limited time. The company said it brought back the deep-fried chicken in response to demand it saw online.



SeaWorld and Macy's are big market movers


Stocks that moved substantially or traded heavily Wednesday on the New York Stock Exchange and the Nasdaq Stock Market:


NYSE


SeaWorld Entertainment Inc., down $9.25 to $18.90


The theme park and entertainment company reported worse-than-expected quarterly financial results and cut its full-year guidance.


Macy's Inc., down $3.29 to $56.47


The department store operator reported a worse-than-expected quarterly profit and cut its full-year sales outlook for stores opened at least a year.


King Digital Entertainment Plc., down $4.21 to $13.99


The maker of the game "Candy Crush" reported second-quarter revenue that fell short of expectations and cut its full-year guidance.


Deere & Co., down $1.99 to $84.49


The farming equipment maker reported a drop in quarterly profit and cut its full-year outlook on weak sales in the U.S. and Canada.


Nasdaq


Amazon.com Inc., up $6.96 to $326.28


The online retailer introduced a credit-card processing device to help businesses accept payments through smartphones and tablets.


Cree Inc., down $4.38 to $44.81


The LED lights and semiconductor maker set its fiscal first-quarter profit and revenue guidance below Wall Street expectations.


Myriad Genetics Inc. down $2.96 to $36.04


The molecular diagnostics company reported better-than-expected quarterly results, but set lower-than-expected guidance.


Canadian Solar Inc., up $6.06 to $31.03


The solar panel maker reported a quarterly profit, topping Wall Street expectations, on a boost in revenue and module shipments.



2 water companies at odds over Poland Spring label


A bottled-water company that won the right to draw water from Poland Spring is at loggerheads with the Maine-based Poland Spring brand.


Newcomer Maine Springs says it's required by law to identify its water source, which includes Poland Spring. It's suing the Poland Spring company, which has told it that putting the name on labels infringes upon its brand.


A spokeswoman for Poland Spring's corporate parent, Nestle Waters North America, tells the Portland Press Herald (http://bit.ly/1rqjWb3 ) the Maine Springs lawsuit is "meritless."


Maine Springs also contends the Poland Spring company misrepresents the source of its water. In 2003, Poland Spring settled a class action lawsuit that contended its water comes from wells, not bubbling springs. Poland Spring's water sources include Poland, Poland Spring, Hollis, Kingfield and Fryeburg.



Mexico: State firm gets 83 percent of oil reserves

The Associated Press



Mexico's state-owned oil company will retain rights to exploit 83 percent of the country's proven and probable reserves under the newly enacted opening of the energy business, although the company will form alliances with private firms in some of those fields, the government announced Wednesday.


The allocation given to Petroleos Mexicanos, or Pemex, will equal about 2.5 million barrels of oil a day for 20.5 years, Energy Secretary Pedro Joaquin Coldwell said.


"This guarantees that Pemex will have its development secured in the immediate future," Coldwell said. "Pemex will continue being Mexicans' great company."


Pemex will get rights to only 21 percent of the country's possible reserves. The company had asked for 31 percent.


The allocations given to Pemex are part of the so-called "Round Zero," the first areas on land and offshore to be assigned under an energy overhaul signed into law by President Enrique Pena Nieto on Monday. The new law allows private and foreign firms to sign production and profit-sharing deals in the oil, gas and electricity industries.


Private exploitation of Mexico's oil and gas drilling is being allowed for the first time since the industry was nationalized 76 years ago.


Pemex Chief Executive Emilio Lozoya said that beginning in November the company will start trying to form strategic partnerships with private companies on 10 different projects, which Pemex hopes to consolidate in 13 months.


"These first selected projects will allow us to leverage the possibility of establishing strategic partnerships to which Pemex had no chance, and will involve 1.5 billion barrels of (proven and probable) reserves," Lozoya said.


"Round One" will include bidding scheduled to start in February and will let private firms vie for rights to explore the 79 percent of remaining fields where reserves are suspected.


Deputy Energy Secretary Lourdes Melgar said the bidding will be for the allocation of blocks in an area of about 28,500 square kilometers (11,000 square miles), with 91 percent of that in exploration areas and the rest in blocks ready for extraction. The blocks include mature fields, offshore areas and shale gas fields.


The government expects opening those areas to private and foreign firms will bring in $12.6 billion in investment annually over the next three years, Melgar said.


"Defining what blocks will be up for bidding is the easy part. What's difficult is putting those areas up for bidding," said Mexico City oil analyst David Shields. "The 'Round One' will be the biggest exercise in public bidding in Mexico's history and that will be very difficult."



Cisco to lay off up to 6,000 workers


Cisco says it will lay off up to 6,000 workers, or 8 percent of its workforce, as part of a restructuring.


The company, which makes routers, switches and software, made the announcement during a conference call discussing its fiscal fourth-quarter earnings.


The San Jose, California-based company reported a 1 percent decline in profit, to $2.25 billion, for the latest quarter.


The company estimates pretax charges of up to $700 million, with about $250 to $350 million recorded in the current quarter, for the restructuring.


Shares fell 28 cents, or 1.1 percent, to $24.92 in after-hours trading.



March 8 teaming up to foil Parliament extension bid


BEIRUT: The Hezbollah-led March 8 coalition is teaming up in a bid to foil attempts to extend Parliament’s mandate, a move that is gaining momentum, amid fears of a prolonged presidential vacuum and security concerns about holding parliamentary elections scheduled in November.


Speaker Nabih Berri reiterated Wednesday his opposition to a second extension of Parliament’s term, a stance that won quick support from Hezbollah.


Free Patriotic Movement leader MP Michel Aoun, whose parliamentary Change and Reform bloc opposed last year’s extension of Parliament’s term, vowed Wednesday to vote against a new extension.


“The Free Patriotic Movement will vote against the extension of Parliament’s term,” MP Salim Salhab from Aoun’s bloc told the Voice of Lebanon radio station.


Lebanese Forces leader Samir Geagea also came out opposing a proposal to extend Parliament’s mandate for more than two years.


“We are against the extension. We will not vote for the draft proposal to extend Parliament’s term. Instead, we will vote for holding parliamentary elections on time,” Geagea said in an interview with MTV station Wednesday night. He stressed that holding the parliamentary elections was the “best solution.”


Meanwhile, former Prime Minister Saad Hariri left for the Saudi port city of Jeddah Wednesday to discuss how to implement a $1 billion Saudi grant to bolster the capabilities of the Lebanese Army and security forces in their battle against terrorism.


Hariri will hold talks with Saudi officials related to ongoing efforts to put Saudi King Abdullah’s grant to the Lebanese Army and security forces into effect, a statement from Hariri’s office said.


Two days before he returned to Lebanon on Aug. 8 after more than three years in self-exile abroad over security concerns, Hariri announced from his residence in Jeddah a $1 billion grant offered by the Saudi king to help Lebanon’s Army and security forces to fight terrorism and extremism following fierce fighting earlier this month pitting the Lebanese Army against Islamist militants in and around the Bekaa town of Arsal.


In rejecting a new extension, Berri asked what was the use of renewing the mandate of a paralyzed Parliament that does not legislate.“I refuse to extend Parliament’s term again and I am not maneuvering as some may think,” Berri was quoted as saying by MPs during his weekly meeting with a number of lawmakers at his Ain al-Tineh residence.


“What is the benefit of extending the term of a paralyzed Parliament that does not legislate and does not assume its role fully?” he asked. “The extended Parliament proved to be ineffective.”


Hezbollah MPs who attended the meeting in Ain al-Tineh said the party had not taken a final decision on the extension of Parliament’s term, but said they supported Berri’s stance in rejecting the extension.


“All of us are for the election of a new president. So far, there has been no official stance on the extension, but we support Speaker Berri’s stance,” Hezbollah MP Nawar Saheli told reporters in Ain al-Tineh.


Berri’s stance flies in the face of the prevailing political attitude, which views a second extension of Parliament’s term as nearly inevitable.


The Lebanese Constitution requires elections to be held by Nov. 16, 2014.


The polls, originally set for June 2013, were delayed by Parliament last May. MPs, citing the security situation and the inability of rival parties to agree on a new electoral law, extended Parliament’s term by 17 months.


Zahle MP Nicolas Fattoush Tuesday presented to Parliament’s Secretariat General a proposal to extend the legislature’s tenure by more than two years, citing security conditions that do not allow holding elections in November.


Hariri and former premier Fouad Siniora said they supported a new extension of Parliament’s term in the event a new president could not be elected.


MP Walid Jumblatt was also reported to be supporting a limited extension of Parliament’s mandate.


Parliament failed Tuesday for the 10th time in four months to elect a new president over a lack of quorum, raising fears of a prolonged vacancy in the country’s top Christian post.


Aoun’s bloc slammed a proposal for a new extension, saying it placed Lebanon’s democracy in jeopardy and dealt a blow to the principle of the rotation of power.


Geagea, the March 14 coalition-backed candidate for the presidency, expected the 3-month-old presidential stalemate to drag on “until further notice.” He blamed Aoun’s bloc and Hezbollah for the deadlock, saying the two sides held the key to electing a president.


“We can simply go to Parliament to elect a president. But there are two parliamentary blocs that are obstructing the presidential election,” Geagea told MTV, in a clear reference to lawmakers from Aoun’s and Hezbollah’s blocs who have thwarted a quorum by boycotting Parliament sessions, demanding a deal beforehand with their March 14 rivals on a consensus candidate.



Three hotspots could erupt into violence


BEIRUT: The porous frontiers by Arsal, the overcrowded quarters of Roumieh prison and the labyrinthine confines of Ain al-Hilweh: These are Lebanese areas that could one day compromise national security, according to the Interior Ministry.


Each presents unique conundrums for security forces and the Lebanese Army and, given their operational realities, entails fundamentally different challenges, experts and government sources told The Daily Star.


In Arsal, the site of five-day clashes between Islamist militants from Syria and the Army, the rough terrain and dense urban zone is the primary challenge, whereas in Ain al-Hilweh, it’s a matter of knowing who’s who, and in Roumieh, of enacting stricter measures and speeding up Lebanon’s sluggish judicial process.


“It’s the broad borders of Arsal,” an Interior Ministry source said, describing the trials ahead for the security forces in containing the designated areas.


“It’s the mix of [fundamentalist] groups in Ain al-Hilweh, including Osbat al-Ansar.”


“And Roumieh,” the source, who requested anonymity, added, “is becoming the headquarters of all terrorism operations.”


The success of a Cabinet-backed security plan that went into effect in Tripoli in March accounted for the conspicuous absence of the northern city, which has seen 20 rounds of clashes since 2008, on the list, the source said.


Overreliance on the Lebanese Army to make up for the role normally assumed by police, however, will add more pressure on the military establishment, already spread thin across the country, explained Aram Nerguizian, a senior fellow at the Center for Strategic and International Studies.


When deployed in urban zones, such as the streets of Bab al-Tabbaneh, a restive Tripoli neighborhood known to house Islamists, such as Hussam al-Sabbagh, who was arrested last month, the Army employs a special term – “high intensity internal stability” – to characterize the operation.


“It signifies doing something not normally relegated to the military, usually assumed by police, the ISF or the special forces,” Nerguizian said.


After a military presence in urban areas became commonplace following a series of suicide bombings last year, the counter-offensive in Arsal last week saw the Army instead playing a role that harkened back to its traditional function: defending Lebanon from external threats.


“Arsal falls closer to the Army’s comfort zone, they want to go back to the basics,” explained Nerguizian. “They don’t like being the backup for the police.”


With a highly urbanized and dense center flanked by a vast and open terrain, Arsal posed an operational challenge for the Army: It needed to root out jihadist militants without incurring collateral damage in the process. Arsal’s residents complained to The Daily Star that remote artillery fire appeared to be indiscriminate, destroying homes and businesses nowhere near militants’ hideouts in the town.


Nevertheless, last week’s fighting saw the Army debuting key American-provided weaponry, including laser-guided munitions and the AGM 114 Hellfire, an air-to-surface missile designed for precision attacks, Nerguizian said.


The strategy of remote artillery attack was adopted because of the Army’s proclivity to engage with the enemy outside the range of sniper fire, largely to keep its own casualty figures low. In the first day of fighting, about 11 soldiers were killed, a relatively high death toll.


The declining number of Army fatalities in the following days, however, signaled in military parlance that the situation was stabilizing.


Future clashes with militants will require the Army to use more precise weaponry and invest in more aircraft. Given the agility of militants on the ground, the Army needs to be able to expand and enhance its ability to bring targeted fire at range down on the threats, said Nerguizian.


“Right now, in Lebanon, the number of aircraft that can do this can be counted on one hand,” he added. Limited capabilities can have dangerous consequences, especially if the militants catch on.


“They’ll notice the aircraft has to refuel, and realize they have a window in that time, to break out.”


Political bickering threatens to hinder the use of Saudi Arabia’s $1 billion grant to quell terrorism in the country, but decisions should be made soon to prepare for future attacks, he said.


“What happened in Arsal is the first round of what is likely to be multiple potential rounds,” Nerguizian said.


Intervention in Roumieh Prison and Ain al-Hilweh will prove to be a far more subtle task than amassing sophisticated weaponry. Structures of communication exist between Islamists prisoners and groups in Ain al-Hilweh, according to the Interior Ministry source, largely through the use of smartphone technology.


Phones are formally banned inside the prison, but the fact that inmates possess them indicates the extent to which policing inside the complex has failed. But in their exchanges, Lebanon’s intelligence agencies find an opportunity to collect information and build profiles of extremist groups and their recruitees, a reason why the lines of communication between Roumieh and Ain al-Hilweh, among other areas, have remained open.


“In the last five years, Roumieh has been a continuous source of worry for the Lebanese authorities,” said Nizar Abdel-Qader, a retired Army general. “It is overcrowded and there there was weak management, so prisoners were controlling themselves rather than being controlled by guards.”


However, he said, the dawdling judicial process, which has served to keep many Fatah al-Islam members behind bars without formal charges since the 2007 clashes in Nahr al-Bared, has actually emboldened inmates to retaliate against the state.


Experts and government sources agree that in the case of Ain al-Hilweh, intelligence gathering and cooperation, rather than brute force, would be the primary means to deter terror plots. Despite this, the formation of the joint elite Palestinian force in the camp has ostensibly improved conditions, with locals reporting no major security incidents. But after just a month on the streets, their deployment is still new and only time can prove their effectiveness.


Regular patrols in sensitive areas, especially the Taamir neighborhood where Islamist groups are believed to be in hiding, were bolstered with the installation of surveillance cameras. The area was a known refuge of the members and supporters of the Abdallah Azzam Brigades, which orchestrated the Iranian Embassy bombings in November.


In all, Abdel-Qader said the group still counts 130-150 members and supporters.


“These people are a real threat, they can reorganize themselves at any time,” he said.


Security in the camp does not fall under the purview of the Lebanese security forces, but rather that of the Palestinian factions. This means intelligence liaisons between both sides is crucial to avoiding security incidents, Abdel-Qader said. – Additional reporting by Mohammed Zaatari



Three hotspots could erupt into violence


BEIRUT: The porous frontiers by Arsal, the overcrowded quarters of Roumieh prison and the labyrinthine confines of Ain al-Hilweh: These are Lebanese areas that could one day compromise national security, according to the Interior Ministry.


Each presents unique conundrums for security forces and the Lebanese Army and, given their operational realities, entails fundamentally different challenges, experts and government sources told The Daily Star.


In Arsal, the site of five-day clashes between Islamist militants from Syria and the Army, the rough terrain and dense urban zone is the primary challenge, whereas in Ain al-Hilweh, it’s a matter of knowing who’s who, and in Roumieh, of enacting stricter measures and speeding up Lebanon’s sluggish judicial process.


“It’s the broad borders of Arsal,” an Interior Ministry source said, describing the trials ahead for the security forces in containing the designated areas.


“It’s the mix of [fundamentalist] groups in Ain al-Hilweh, including Osbat al-Ansar.”


“And Roumieh,” the source, who requested anonymity, added, “is becoming the headquarters of all terrorism operations.”


The success of a Cabinet-backed security plan that went into effect in Tripoli in March accounted for the conspicuous absence of the northern city, which has seen 20 rounds of clashes since 2008, on the list, the source said.


Overreliance on the Lebanese Army to make up for the role normally assumed by police, however, will add more pressure on the military establishment, already spread thin across the country, explained Aram Nerguizian, a senior fellow at the Center for Strategic and International Studies.


When deployed in urban zones, such as the streets of Bab al-Tabbaneh, a restive Tripoli neighborhood known to house Islamists, such as Hussam al-Sabbagh, who was arrested last month, the Army employs a special term – “high intensity internal stability” – to characterize the operation.


“It signifies doing something not normally relegated to the military, usually assumed by police, the ISF or the special forces,” Nerguizian said.


After a military presence in urban areas became commonplace following a series of suicide bombings last year, the counter-offensive in Arsal last week saw the Army instead playing a role that harkened back to its traditional function: defending Lebanon from external threats.


“Arsal falls closer to the Army’s comfort zone, they want to go back to the basics,” explained Nerguizian. “They don’t like being the backup for the police.”


With a highly urbanized and dense center flanked by a vast and open terrain, Arsal posed an operational challenge for the Army: It needed to root out jihadist militants without incurring collateral damage in the process. Arsal’s residents complained to The Daily Star that remote artillery fire appeared to be indiscriminate, destroying homes and businesses nowhere near militants’ hideouts in the town.


Nevertheless, last week’s fighting saw the Army debuting key American-provided weaponry, including laser-guided munitions and the AGM 114 Hellfire, an air-to-surface missile designed for precision attacks, Nerguizian said.


The strategy of remote artillery attack was adopted because of the Army’s proclivity to engage with the enemy outside the range of sniper fire, largely to keep its own casualty figures low. In the first day of fighting, about 11 soldiers were killed, a relatively high death toll.


The declining number of Army fatalities in the following days, however, signaled in military parlance that the situation was stabilizing.


Future clashes with militants will require the Army to use more precise weaponry and invest in more aircraft. Given the agility of militants on the ground, the Army needs to be able to expand and enhance its ability to bring targeted fire at range down on the threats, said Nerguizian.


“Right now, in Lebanon, the number of aircraft that can do this can be counted on one hand,” he added. Limited capabilities can have dangerous consequences, especially if the militants catch on.


“They’ll notice the aircraft has to refuel, and realize they have a window in that time, to break out.”


Political bickering threatens to hinder the use of Saudi Arabia’s $1 billion grant to quell terrorism in the country, but decisions should be made soon to prepare for future attacks, he said.


“What happened in Arsal is the first round of what is likely to be multiple potential rounds,” Nerguizian said.


Intervention in Roumieh Prison and Ain al-Hilweh will prove to be a far more subtle task than amassing sophisticated weaponry. Structures of communication exist between Islamists prisoners and groups in Ain al-Hilweh, according to the Interior Ministry source, largely through the use of smartphone technology.


Phones are formally banned inside the prison, but the fact that inmates possess them indicates the extent to which policing inside the complex has failed. But in their exchanges, Lebanon’s intelligence agencies find an opportunity to collect information and build profiles of extremist groups and their recruitees, a reason why the lines of communication between Roumieh and Ain al-Hilweh, among other areas, have remained open.


“In the last five years, Roumieh has been a continuous source of worry for the Lebanese authorities,” said Nizar Abdel-Qader, a retired Army general. “It is overcrowded and there there was weak management, so prisoners were controlling themselves rather than being controlled by guards.”


However, he said, the dawdling judicial process, which has served to keep many Fatah al-Islam members behind bars without formal charges since the 2007 clashes in Nahr al-Bared, has actually emboldened inmates to retaliate against the state.


Experts and government sources agree that in the case of Ain al-Hilweh, intelligence gathering and cooperation, rather than brute force, would be the primary means to deter terror plots. Despite this, the formation of the joint elite Palestinian force in the camp has ostensibly improved conditions, with locals reporting no major security incidents. But after just a month on the streets, their deployment is still new and only time can prove their effectiveness.


Regular patrols in sensitive areas, especially the Taamir neighborhood where Islamist groups are believed to be in hiding, were bolstered with the installation of surveillance cameras. The area was a known refuge of the members and supporters of the Abdallah Azzam Brigades, which orchestrated the Iranian Embassy bombings in November.


In all, Abdel-Qader said the group still counts 130-150 members and supporters.


“These people are a real threat, they can reorganize themselves at any time,” he said.


Security in the camp does not fall under the purview of the Lebanese security forces, but rather that of the Palestinian factions. This means intelligence liaisons between both sides is crucial to avoiding security incidents, Abdel-Qader said. – Additional reporting by Mohammed Zaatari



‘Extraordinary circumstances’ to extend Parliament’s term remain


BEIRUT: MP Nicholas Fattoush said Wednesday that the “extraordinary circumstances” which prompted Parliament to extend its term in 2013 have become worse, a reality which made him propose another extension to salvage Lebanon from a “deadly void” in institutions.


Fattoush’s draft law, which he presented to Parliament Tuesday, calls for extending the legislature’s term for two years and seven months, citing security reasons that do not allow the timely holding of parliamentary elections, scheduled for November.


“The issue is not whether we can extend Parliament’s term another time or not. Did the extraordinary circumstances change? I believe that the current circumstances are even more difficult than those of 2013,” Fattoush told The Daily Star in a telephone interview.


“If someone can say that he can guarantee holding parliamentary elections [safely], then I will immediately withdraw the draft law,” Fattoush explained.


A holder of a doctorate in law, Fattoush, 71, used to lecture in France and at Lebanon’s Universite Saint Joseph. He taught constitutional law, administrative law and political theory.


The Zahle lawmaker presented a draft law to extend Parliament’s term for two years in 2013, citing security reasons. MPs, however, extended their term for only 17 months in May of that year.


Fattoush said that the security situation was now worse. Earlier this month, militants from the Islamic State of Iraq and Greater Syria and the Nusra Front took over the northeastern town of Arsal. They withdrew after five days of bloody clashes with the Army which claimed the lives of 19 soldiers, 16 residents of Arsal and dozens of militants. The militants also kidnapped 19 soldiers and around 20 members of the Internal Security Forces.


Syrian rebels often fire rockets on villages in the Bekaa Valley, where Hezbollah enjoys wide support, in retaliation for the party’s military involvement in Syria alongside the regime of President Bashar Assad.


Several suicide bombings have also rocked areas associated with Hezbollah over the past year and the war in neighboring Syria has fueled sporadic clashes between supporters and opponents of Assad in Tripoli.


In his draft law, Fattoush said it was almost impossible to hold parliamentary elections amid such extraordinary circumstances and “conspiracies coming from outside which threaten the entity [of Lebanon] and coexistence.”


The draft law states that the current security situation prevented candidates from organizing election campaigns and made candidates and voters unable to directly communicate in most Lebanese districts, particularly in cities. “This is an essential issue which torpedoes the entire electoral process.”


The proposal adds that given the dangerous situation, the Army and ISF could not ensure that the polls could take place safely across Lebanon in one day as stipulated by the current election law.


Another factor that could prevent the holding of elections is the fact that teachers and state employees who usually work at voting centers are often holding strikes over a long-awaited salary increase for the public sector.


Former prime ministers Saad Hariri and Fouad Siniora voiced their backing for an extension in the event that a president was still not elected by the time the date of parliamentary elections arrived.


However, Speaker Nabih Berri, Hezbollah and the Free Patriotic Movement so far oppose the step.


“What is the use of extending the life of a Parliament that does not legislate and does not assume its role fully,” Berri was quoted by his visitors as saying Wednesday. He was referring to paralysis which marked Parliament’s activity in recent months.


Fattoush said those who oppose the extension proposal should present a constitutional counter-argument.


“Let them tell me for example that this constitutional point [I present in the draft law] is baseless. I have attached eight pages to the draft law which detail a series of security incidents the country has witnessed.”


“This is a draft law for the sake of the country. I am surprised with this opposition to the extension. Look at the situation in the country and at the reasons the draft law cites for extension. They are backed by the most prominent constitutional experts in the country,” Fattoush said. “Shall we drag the country to the unknown? There is currently a presidential void and if Parliament’s term expires [without holding elections], we will fall into a deadly void.”


Fattoush said that any lawmaker who did not favor extension could vote against it. “If the majority does not want extension, I will succumb to their will. After all, we are all in one boat.”