US warns Russia of tougher sanctions over Ukraine

WASHINGTON -- Treasury Secretary Jacob Lew told his Russian counterpart on Thursday that Russia could face tougher economic sanctions because of its actions in Ukraine.

The U.S. Treasury said that Lew warned Russian Finance Minister Anton Siluanov that the United States is prepared to impose "additional significant sanctions" if Russia escalates the Ukraine situation. Treasury said in a statement that Lew described Russia's annexation of Crimea as "illegal and illegitimate."

Lew's discussions with Siluanov came in advance of meetings Thursday of finance officials from the Group of Seven major industrial countries and the Group of 20 nations, which includes the G-7 countries and emerging economies such as China, Brazil and India.

Russia is a member of the G-20 but not the G-7. The G-7 nations are the United States, Japan, Germany, Britain, France, Canada and Italy.

Last month, President Barack Obama met with other G-7 leaders and the group confirmed that it was indefinitely suspending cooperation with Russia, which for more than a decade had joined with the G-7 countries to form the Group of Eight nations. That larger group was to hold a summit later this year in Sochi, Russia. But the G-7 nations have said they will boycott that meeting.

It was unclear how much support the United States would receive from other countries to strengthen the sanctions imposed on Russia.

After the G-7 talks, the group issued a joint statement that confirmed that the situation in Ukraine had been discussed, including the country's financing needs, but the statement did not indicate that the group had endorsed tougher sanctions.

French Finance Minister Michel Sapin told reporters before the discussions that France preferred to focus on the economic support being provided to Ukraine. That effort is being led by the International Monetary Fund, which says it will provide up to $18 billion in loan guarantees to Kiev to help the country get its economy moving again.

"The question is not to talk about sanctions. The question is to get started ... as quickly as possible" working to get the IMF's support program implemented.

The U.S. delegation to the G-7 and G-20 talks was led by Lew and Federal Reserve Chair Janet Yellen.

A G-20 dinner Thursday night included a tribute to former Canadian Finance Minister Jim Flaherty, who died earlier in the day. Flaherty, who took the Cabinet position in 2006, was the longest-serving G-7 finance minister before he announced three weeks ago that he was stepping down. A friend said he had died of a massive heart attack.

Australian Treasury Minister Joe Hockey, the current chair of the G-20, told the group, "Canada is poorer for his passing and we are all poorer."

In the G-7 statement, the group praised Flaherty as "a greatly valued and forthright colleague and friend."

Lew cited Flaherty for his skill in helping Canada navigate the 2008 global financial crisis.

The G-20 talks were scheduled to wrap up Friday with news conferences from many of the participating nations. Then on Saturday, the policy-setting councils of the 188-nation IMF and its sister lending organization, the World Bank, were to hold their spring meetings.

On Thursday, IMF Managing Director Christine Lagarde said the global economy was finally turning the corner after a deep recession but the recovery remains too weak.

Speaking at a news conference, Lagarde called on governments to aggressively pursue programs to spur economic growth to help the millions of people who remain unemployed.

"Bold actions are need to generate stronger growth," Lagarde told reporters.

The discussions on how to boost growth and fight poverty were likely to be overshadowed at the meetings by the rising tensions over Russia's actions in Ukraine.

The United States and European nations have imposed various economic sanctions on Russia including travel bans and asset freezes in response to Russia's annexation of Crimea, with the possibility of tougher sanctions on the table.

To provide support for Ukraine's cash-strapped government, the IMF is working up a loan package to provide between $14 billion to $18 billion in assistance.

However, Russian President Vladimir Putin has threatened to demand advance payment from Ukraine for natural gas that Russia supplies to the country.

Asked Thursday about the IMF support, Lagarde said the IMF hoped to have the program for Ukraine approved by its 24-member board by the end of this month or early May.

Foreign ministers from the 28-nation European Union are scheduled to meet in Brussels on Monday and the issue of expanding the sanctions will be discussed. However, some countries have already expressed opposition to such a move.

World Bank President Jim Young Kim told reporters at a separate news conference that the sanctions that have already been imposed were having a dampening effect on Russia's economy and if the crisis worsens, he said Russia could be pushed into a recession.

Kim said that the World Bank was preparing its own support package for Ukraine amounting to around $3.5 billion.

Associated Press writer Harry Dunphy contributed to this report.

Environmental group sues over mine expansion plan

HELENA, Mont. -- An environmental group is suing Montana environmental regulators over a permit allowing the expansion of a gold mining operation near Whitehall without requiring the Canadian company to completely backfill the new open pit after the mining ends.

The reclamation plan approved by the state Department of Environmental Quality in its operating permit to Barrick Gold Corp. violates the Montana Constitution's right to a clean and healthful environment, the Montana Environmental Information Center claimed in its lawsuit filed Monday.

The plan the DEQ approved in January for the new pit at the Golden Sunlight Mine requires only the partial backfilling that would leave at least 15 acres open after operations cease.

That plan would be less visually appealing, provide less habitat for wildlife and be less structurally stable than completely backfilling the pit, the environmental group's lawsuit said.

The group is seeking a judge's order for the pit to be completely filled in, saying there is a constitutional duty "to reclaim all lands disturbed by the taking of natural resources."

DEQ spokesman Chris Saeger told the Independent Record (http://bit.ly/1qytEHc) in a story published Wednesday that the agency was unaware of the lawsuit. Mine officials also had not seen the lawsuit and had no comment.

The agency decided not to require backfilling because of concerns that if the water treatment system fails, it would be more difficult to fix, the lawsuit said.

"If that's the logic they're using then we'll never reclaim an open pit," MEIC executive director Jim Jensen said.

The plan expands an existing open-pit mine and builds a second one nearby. The new mining will occur on 68 acres and produce nearly 53 million tons of new waste rock, DEQ officials said in January.

The expansion is expected to extend the 200-worker mine's life by two years to 2017.

US Internet ad revenue surpasses broadcast

NEW YORK -- For the first time, U.S. Internet advertising revenue has surpassed that of broadcast television thanks to sharp growth in mobile and digital video ads.

That's according to a report from the Interactive Advertising Bureau, which said Thursday that Internet advertising revenue rose 17 percent to a record $42.8 billion in 2013. Broadcast TV ad revenue, in comparison, was $40.1 billion in 2013.

Mobile advertising revenue more than doubled to $7.1 billion from $3.4 billion in 2012 as companies like Facebook, Google and Twitter boosted their mobile presence.

IAB is made up of more than 600 media and technology companies that sell most of the online advertising in the U.S. The report is based on a survey conducted by PricewaterhouseCoopers.

Reports: Indianapolis strikes deal to keep Pacers

INDIANAPOLIS -- The Indianapolis Capital Improvement Board reportedly has struck a deal to pay about $160 million to the Indiana Pacers to keep the NBA franchise in the city.

The Indianapolis Star and the Indianapolis Business Journal reported Thursday that the deal due to be announced Monday will keep the Pacers in the city through the 2023-24 season. The agreement includes options to renew the deal for three years.

The reports said the deal includes $33.5 million for upgrades to Bankers Life Fieldhouse and $10.8 million per year for operations. The Pacers would not be allowed to terminate the agreement because of operating losses. The city also gets the right of first refusal if 79-year-old team owner Herb Simon dies and his heirs put the team up for sale.

Israel launches new spy satellite

JERUSALEM -- Israel's Defense Ministry said on Thursday that it has successfully launched a new observation satellite into orbit, one which is expected to be used to observe Iran and hostile militant groups in the Middle East.

According to the announcement, the Israeli-made "Ofek 10" satellite was launched late Wednesday in cooperation with state-owned Israel Aerospace Industries. The satellite has already begun transmitting data and visual material. It is expected to be operational within months.

Israel is expected to use the satellite to keep tabs on Iran and the region. It believes Iran is trying to develop a nuclear weapon — a charge Iran denies — and accuses it of arming militants across the region.

The Ofek 10 is the latest in a line of spy satellites built by Israel Aerospace Industries for the government.

It is a lightweight satellite that is expected to improve Israel's reconnaissance abilities by providing sharp images at any time of day, and in any weather condition, said Ofer Doron of Israel Aerospace Industries.

"The Ofek 10 satellite should improve Israel's intelligence capability and allow the defense establishment to better deal with threats near and far," said Defense Minister Moshe Yaalon in a statement.

"We are continuing to strengthen our tremendous qualitative and technological advantage over our neighbors," Yaalon added.

The satellite has the capability to direct its imaging radar on a specific target, as opposed to other satellites that perform a general sweep of territory.

"It has an incredible imaging capability...to give very precise photos," said Doron.

Unlike other countries that launch satellites eastward in the direction of the earth's orbit, Israel launched the satellite westward, opposite the direction of the earth's orbit, to prevent debris following the launch to land in enemy countries east of Israel, said Doron. The satellite completes a full orbit around the earth every 90 minutes, said Doron.

Investors flee tech stocks again, pummeling Nasdaq

NEW YORK -- U.S. stock indexes are slipping lower in early trading as investors pick over a mixed batch of corporate earnings reports.

KEEPING SCORE: The Standard & Poor's 500 index sank four points, or 0.2 percent, to 1,869 in the first half-hour of trading. The Dow Jones industrial average slipped one point to 16,456 and the Nasdaq composite index lost 30 points, or 0.7 percent, to 4,154.

ICAHN OUT: Ebay's stock dropped on news that Carl Icahn is backing down from his campaign to shake up the company. The e-commerce company has been fighting a push from the activist investor to spin off PayPal, eBay's mobile payment business. Ebay's stock fell $1.57, or 3 percent, to $54.37.

RITE AID: Shares of Rite Aid surged after the retailer turned in quarterly results that topped analysts' expectations. Rite Aid also announced the acquisition of RediClinic and said it plans to expand the Texas chain of health clinics. The company's stock gained 81 cents, or 13 percent, to $7.20.

AND BEYOND: Weaker sales at Bed Bath & Beyond drove the company's stock down $3.76, or 6 percent, to $64.15. The company reported a drop in quarterly revenue and profit late Wednesday. Like many other retailers, Bed Bath & Beyond laid some of the blame on cold winter weather for keeping customers at home.

JOBS: The Labor Department said that the number of people applying for U.S. unemployment benefits dropped to 300,000, the lowest level in nearly seven years. The less-volatile four-week average dropped, too. Fewer Americans sought unemployment benefits last week than at any point since the Great Recession started in December 2007.

ASIA: Stock markets in Hong Kong and Shanghai climbed on plans to link the exchanges, which would expand access to Chinese companies for foreign investors. Hong Kong's Hang Seng gained 1.5 percent and the Shanghai Composite added 1.4 percent.

EUROPE: Germany's DAX gained 0.1 percent, and France's CAC-40 fell 0.1 percent. The FTSE 100 index of leading British shares rose 0.4 percent.

BONDS AND COMMODITIES: In government bond trading, the yield on the 10-year Treasury note dipped to 2.68 percent from 2.69 percent late Wednesday. The price of crude oil fell 23 cents to $103.37 a barrel. Gold rose $13.50 to $1,319.30 an ounce.

Bill would allow landlords to garnish PFDs

JUNEAU, Alaska -- Landlords would be entitled to garnish the Permanent Fund dividends of renters under a bill approved by a House committee.

House Bill 282 updates the Alaska Landlord and Tenant Act for the first time in decades, the Juneau Empire reported (http://is.gd/H3VWk7) Thursday.

The House Judiciary moved the bill Wednesday to the full House. It would have to be passed by both the House and Senate before the legislative session ends April 20 to become law.

Among other things, the bill allows landlords to garnish the PFDs of tenants to cover repairs that cost more than the renter's security deposit.

Landlords "have to have recourse somehow," said the sponsor, Rep. Doug Isaacson, R-North Pole.

If approved, Alaska would become the ninth state to define "normal wear and tear" of a rental unit as "without negligence, carelessness, accident, misuse, or abuse of the premises or contents" by the tenant or visitors.

The state labor department said about 91,000 of Alaska's housing units — or 36 percent of all housing units in the state — are rentals.

The bill would require landlords and tenants to sign a checklist or other form describing the unit before someone moves in to make sure there is no improper garnishment.

Also included in the bill are provisions for the landlord to collect an additional pet deposit and an allowance to extend the deadline for a landlord to return a security deposit, from 14 days to 30 days.

Landlords can currently seek up to two months of rent as a deposit. The law allows a third month of rent to be required as a pet deposit.

"Pets can be very damaging to an apartment, so a lot of landlords say no pets. This gives the landlord the ability to let the pet come," Isaacson said.

It also makes legal the rental of units that don't have running water or electricity, if both parties agree to that at the beginning of the rental term. Isaacson said this was done to make sure these types of homes common in the Fairbanks area are covered in law.

Another provision of the bill allows landlords to evict tenants involved in illegal activities, including prostitution.