World Bank: Palestinian economy to shrink in 2014

RAMALLAH, West Bank -- The Palestinian economy is expected to contract for the first time in seven years in 2014, the result of the recent Gaza war, continued Israeli and Egyptian restrictions on Palestinian trade and a drop in foreign aid, the World Bank said Tuesday.

The bank issued the report ahead of a meeting next week of donor nations to the Palestinians on the sidelines of the U.N. General Assembly.

The bleak forecast is a "wake-up call to everyone" that the status quo, particularly in Gaza, cannot continue, Steen Lau Jorgensen, the bank's top official in the West Bank and Gaza, told The Associated Press.

The bank predicts that the overall Palestinian economy will shrink by 4 percent this year, ending a period of growth driven largely by international aid that began in 2007. The downturn is expected to be sharpest in war-battered Gaza, with a projected drop of 15 percent, the bank said.

Gaza has been largely sealed off by Israel and Egypt since the Islamic militant Hamas seized the territory in 2007, wresting control from Western-backed Palestinian President Mahmoud Abbas. Since then, Israel and Hamas have engaged in three major rounds of conflict, including a 50-day war that ended in late August.

More than 2,100 Palestinians were killed in the latest war, about three-fourths of them civilians, and more than 17,000 homes were destroyed or severely damaged, according to the United Nations.

An international conference on raising funds for Gaza reconstruction is to be held Oct. 12 in Egypt, but the issue will also be the focus of a meeting next week in New York of representatives of key countries providing aid to the Palestinians. Palestinian officials estimate $6 billion is needed for Gaza reconstruction.

The World Bank said a unified Palestinian government must run the West Bank and Gaza, and restrictions on trade and movement in and out of Gaza must be eased considerably if reconstruction is to be a success.

Both seem remote possibilities.

Hamas and Abbas agreed earlier this year to form a unity government of experts in the West Bank and Gaza under Abbas' leadership. But key disputes remain unresolved and the government has not begun working.

Hamas appears unwilling to hand over power in Gaza, including control over the security forces, even though it agreed to the formation of the unity government, largely in hopes that this would offer a way out of a deepening financial crisis.

At the same time, it is unlikely Israel or Egypt will agree to ease restrictions on Gaza as long as Hamas remains the de facto ruler there. As part of the border blockade, Israel and Egypt bar virtually all exports from Gaza.

Israel allows imports of most consumer goods, but severely restricts the influx of construction materials for fear they could be diverted by Hamas for military purposes, such as building attack tunnels. A network of such tunnels was uncovered and destroyed by Israel during the last Gaza war.

Jorgensen, the World Bank official, said a unity government and an easing of restrictions are key to unlocking donor funds.

"It's not clear that you would have substantial amounts ... of new money coming in if there is no unified governance framework," he said. He added that under Israel's restrictions on bringing construction materials into Gaza, it would take 18 years just to rebuild the homes destroyed in the last Gaza war and meet housing demand.

Even without the task of rebuilding Gaza, the Palestinian Authority, Abbas' self-rule government based in the West Bank, faces a funding shortfall of about $350 million in 2014, the bank said.

The bank has repeatedly said that the Palestinian Authority can only reduce its dependence on foreign aid through economic growth which, in turn, has been hampered by continued Israeli restrictions on development.

According to the bank's projections, the West Bank economy is likely to stagnate this year, with about 0.5 percent growth, while the Gaza economy is expected to shrink by 15 percent.

Jorgensen said that aid to the Palestinian Authority should continue as long as it keeps along the path of fiscal reform. "I think no one wants the Palestinian Authority to collapse," he said. "The humanitarian disaster would be so immense."

Monday's Sports In Brief

NFL

EDEN PRAIRIE, Minn. (AP) — The Minnesota Vikings have seen the details. They have seen photos of the injuries that Adrian Peterson's 4-year-old son suffered at the hands of the star running back. They have a history of punishing players who have run into trouble with the law.

The Vikings brought Peterson back to the team anyway even as the public furor over the NFL's approach to addressing domestic abuse reached a fever pitch.

The Vikings reinstated Peterson one day after he sat out a 30-7 home loss to the New England Patriots after he was charged with a felony in Texas for using a wooden switch to spank his son. Peterson, who said he was using a form of discipline his father used on him as a boy, is expected to play against the New Orleans Saints on Sunday.

MINNETONKA, Minnesota (AP) — The Radisson hotel chain is suspending its sponsorship of the Minnesota Vikings after star running back Adrian Peterson was charged with child abuse in Texas.

In a statement, Minnetonka-based Radisson, part of the family owned hospitality and travel company Carlson, said it "takes this matter very seriously particularly in light of our long-standing commitment to the protection of children."

Radisson's sponsorship includes a press banner that is behind those speaking at Vikings news conferences. The banner was behind Vikings general manager Rick Spielman as he discussed the team's decision to reinstate Peterson after benching him for Sunday's game against the New England Patriots.

NEW YORK (AP) — The players' union plans to appeal the indefinite suspension the NFL handed to Ray Rice last week.

NFL Players Association spokesman George Atallah told The Associated Press "we are expecting to appeal before the deadline on Tuesday night." That deadline is 11:59 p.m. EDT.

Rice originally was suspended two games under the NFL's personal conduct policy for striking his then-fiancee in a hotel elevator. When videotape of that incident was made public and showed Rice punching his now-wife Janay, knocking her unconscious, the Baltimore Ravens released the running back.

Almost immediately after that, NFL Commissioner Roger Goodell made Rice's suspension indefinite.

NEW YORK (AP) — Three experts in domestic violence will serve as consultants to the NFL.

Commissioner Roger Goodell sent a memo to teams announcing that Lisa Friel, Jane Randel and Rita Smith will work as "senior advisers." They will "help lead and shape the NFL's policies and programs relating to domestic violence and sexual assault," he wrote.

Goodell has been under heavy criticism for his handling of the domestic abuse case involving star running back Ray Rice. Rice was initially suspended for two games. Goodell at first defended the punishment, but more than a month later, he told owners he "didn't get it right" and that first-time domestic violence offenders would face a six-game suspension going forward.

SANTA CLARA, Calif. (AP) — San Francisco 49ers coach Jim Harbaugh insisted that public pressure will not sway his decision to play Ray McDonald during an investigation into the defensive lineman's arrest on suspicion of domestic violence.

Harbaugh said there "could be" a resolution in the case this week for McDonald, arrested at his home Aug. 31 while celebrating his 30th birthday with teammates and friends.

Panthers coach Ron Rivera on Sunday benched defensive end Greg Hardy for the team's 24-7 win over Detroit after he was active in Week 1. Hardy was convicted July 15 of assault on a female and communicating threats. He is appealing.

McDonald has played and started both games so far for San Francisco (1-1), which lost 28-20 to the Chicago Bears on Sunday night.

GOLF

WINDEMERE, Fla. (AP) — Tiger Woods is too busy in the gym to find a new swing coach, or even swing a golf club.

Woods said his strength has returned and he is on schedule to resume competition in December. But he still hasn't hit a golf ball since he missed the cut at the PGA Championship on Aug. 8, and still doesn't know when he will.

Woods had his fifth surgery in 20 years — this time on his back — and failed to win a PGA Tour event for the third time in the last five years.

BASEBALL

ANAHEIM, Calif. (AP) — The Los Angeles Angels refused to indulge in champagne, cigars or self-congratulation after securing their first playoff spot in a half-decade. Their goals extend far beyond the mere formality they reached with yet another dominant victory over a division rival.

The Angels became the first team in the majors to clinch a postseason berth, with Matt Shoemaker pitching five-hit ball into the eighth inning of an 8-1 victory over the Seattle Mariners.

Manager Mike Scioscia made his priorities clear when he arrived at his postgame news conference table and unceremoniously swept aside three Angels caps with postseason logos attached to their sides.

SAN DIEGO (AP) — Philadelphia Phillies closer Jonathan Papelbon was suspended seven games and fined by Major League Baseball for making a lewd gesture and then bumping an umpire.

Papelbon said in a statement distributed by his agent that he would immediately begin serving the suspension, and that he regrets making contact with umpire Joe West on Sunday.

But the right-hander insisted he wasn't making a vulgar motion toward fans as he walked off the field to boos after giving up four runs in the ninth inning of Philadelphia's 5-4 loss to the Miami Marlins. He apologized to Phillies fans in the statement.

FIFA audit panel member stood down from duty

ZURICH -- FIFA says a member of its financial monitoring panel has been stood down from duty while implicated in financial corruption.

Canover Watson was questioned last month by police anti-corruption and financial crime units in his native Cayman Islands. He denies wrongdoing.

FIFA says audit committee chairman Domenico Scala "decided to temporarily relieve until further notice Canover Watson, to whom the presumption of innocence applies."

The eight-member panel is next scheduled to meet Dec. 16 in Morocco. It scrutinizes FIFA's $1 billion-plus annual revenue and commercial contracts.

FIFA says "no connection with football and/or (Watson's) role at association level has been established at this stage."

Local media reported the case involves a 2010 contract to supply public hospitals with swipe-card billing technology.

Dutch to present less austere budget for 2015

AMSTERDAM -- The Dutch government is presenting a budget for 2015 that for the first time in years will be focused less on 'austerity' and more on security in light of international conflicts.

In a day full of pomp and ceremony, King Willem Alexander will ride in a golden carriage to address both houses of parliament in the ceremonial 13th century "Hall of Knights" in The Hague.

The budget numbers are expected to show more money for both defense and intelligence agencies, with the downing of Malaysian Airlines 17 above Eastern Ukraine looming large in the Dutch psyche, along with fears about Dutch jihadists returning from Syria.

The Dutch economy is slowly recovering, mostly due to strong exports, after years of difficulty due to spending cuts and a burst housing bubble.

Allergan agrees to move forward with meeting

NEW YORK -- Allergan and Pershing Square are agreeing on at least one step toward settling a fight over the makeup of the Botox-maker's board.

Allergan will hold special shareholders meeting, as Pershing Square and its partner, Valeant Pharmaceuticals, continue their push for control of the drugmaker.

At a meeting on Dec. 18, shareholders of Allergan Inc. will be given the opportunity to vote out most of the company's directors, which could give Bill Ackman's Pershing Square Capital Management LP and Valeant Pharmaceuticals International Inc. their chance at a takeover. Valeant has made several offers to buy Allergan, the latest amounting to about $53 billion.

Allergan has rejected all of those bids.

Allergan was already expected to hold its special meeting on that date, but pending litigation may have delayed it.

France's Orange offers $4.4B for Spain's Jazztel

MADRID -- France's Orange has offered 3.4 billion euros ($4.4 billion) to buy the operations of Spanish telecommunications company Jazztel.

Jazztel PLC says in a statement to Spanish securities regulators that Orange SA offered 13 euros ($16.80) in cash for each Jazztel share.

Jazztel shares jumped 6.1 percent in Tuesday morning trading in Madrid after the deal was announced late Monday night. The main Spanish stock index slipped 0.7 percent.

Orange says in a statement that the deal would make it the second largest fixed-line broadband Internet operator in Spain, after market leader Telefonica SA.

The transaction is subject to approval by government regulators.

Jazztel's chairman and largest shareholder is Leopoldo Fernandez Pujals, who also founded Spain's huge Telepizza restaurant chain.

Xerox adding 1,200 jobs in Lexington

LEXINGTON, Ky. -- Xerox is adding 400 full-time jobs and another 800 full-time seasonal positions at its call center operation in Lexington.

The company says the jobs will be added by the end of the year to support an expanding number of clients. The Lexington Herald-Leader (http://bit.ly/X8XE43 ) says Xerox currently has more than 2,500 employees in Lexington and is the city's sixth-largest employer. Xerox said the addition of 400 regular positions could make it Lexington's second-largest private employer.

The company said the seasonal positions will support annual open enrollment for health care providers.

Xerox said it also intends to fill 50 entry-level jobs, such as data entry operators, mail sorters and scanner operators.