August 2011

US Marvell Technology Q2 net income down 13%

August 21, 2011

(MENAFN) Marvell Technology Group Ltd. said that since expenses grew and sales were the same as 2010′s same quarter, the chip designer’s net income in the second quarter dropped 13 percent, reported …

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Australia- Thor announces resignation of non-exec director Norman Gardner

August 21, 2011

(MENAFN – ProactiveInvestors – Australia) Mineral development company Thor Mining (LON:THR, ASX:THR) said today that non-executive director Norman Gardner has resigned from the firm with immediate …

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Australia- Haoma Mining has ore reserve upgraded to 5.7 million tonnes

August 21, 2011

(MENAFN – ProactiveInvestors – Australia) Haoma Mining (ASX: HAO) has received a major boost today from partner Atlas Iron (ASX: AGO), which announced an upgrade in Reserves to 22.8 million tonnes …

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Australia- Fortescue Metals Group strikes $1.6 billion profit, boosts dividend

August 21, 2011

(MENAFN – ProactiveInvestors – Australia) Fortescue Metals Group (ASX: FMG) has reported a normalised net profit after tax of US$1.63 billion, a jump of 131% – but generally in line with market …

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Australia- Black Mountain Resources in pre-open pending acquisition

August 21, 2011

(MENAFN – ProactiveInvestors – Australia) Black Mountain Resources (ASX: BMZ) has been granted a trading halt by the ASX pending the release of details regarding an acquisition, with the company’s …

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US- Black Fire Minerals to complete legal due diligence

August 21, 2011

(MENAFN – ProactiveInvestors – Australia) Black Fire Minerals (ASX: BFE) will now move to complete legal due diligence on the Pilot Mountain Tungsten Copper Project. Black Fire has been notified …

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Another sell-off in the US, Dow falls, Bank of America, HP in focus

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) Wall Street attempted to stage a recovery after Thursday’s massive fall. Trading is volatile as investors continue to fret about the same issues. Plunging …

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Bank of America to cut 3,500 jobs

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) Bank of America (BAC) (NYSE:BAC) plans to cut 3,500 jobs by September, according to reports, on top of the 2,500 job losses seen earlier in the year. An …

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Canada- Western Copper to change its name as part of spin-out agreement

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) Mineral explorer Western Copper Corp (TSE:WRN) said Friday that it plans to change its name to Western Copper and Gold Corp, as part of the spin out …

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Canada- Afexa narrows Q1 losses on higher sales

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) Afexa Life Sciences (TSE:FXA) announced Friday it narrowed its losses in the first quarter as its sales more than doubled, despite a typically slow season …

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US- Kirkland’s falls into red in Q2, predicts weak Q3

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) Kirkland’s (NASDAQ:KIRK) announced Friday it swung to a net loss in its second quarter as same store sales decreased, and said it expects a weak third …

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US- Four BioTime stem cell lines included in national stem cell registry

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) BioTime (AMEX:BTX) announced Friday four of its human embryonic stem (hES) cell lines have been approved by the National Institutes of Health (NIH) for the …

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China- SinoTech refutes fraud allegations

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) SinoTech Energy (NASDAQ:CTE) confirmed Friday that its shares have been stopped from trading on the Nasdaq Exchange, following allegations made by an …

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Stock Market Is Feeding Economic Fear

August 21, 2011

Huffington Post… See original here: Stock Market Is Feeding Economic Fear Find our Weekly Commercial Real Estate, Private Equity and Fund Newsletters at www.WeeklyBrief.net

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MediaNews delays deal to buy Freedom’s newspapers: report

August 21, 2011

NEW YORK (Reuters) – MediaNews Group Inc has delayed a deal to buy Freedom Communications Inc’s newspapers due to trouble with financing, the Wall Street Journal reported on Sunday on its website. Inhospitable debt markets led MediaNews, publisher of the Denver Post and other newspapers, to postpone attempts to get financing for the deal, the Journal reported, citing people familiar with the matter. MediaNews has been in talks for several months with Freedom about buying the Orange County Register and more than 100 other newspapers for around $350 million, the paper said. Discussions between the two companies broke down earlier this year over price, the paper said, but renewed talks during the summer. They could revisit a deal in coming weeks, the Journal said, depending on market conditions. The companies could not immediately be reached for a comment. (Reporting by Martinne Geller, editing by Maureen Bavdek)

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All eyes on Bernanke as recession looms

August 21, 2011

By Jason Lange WASHINGTON (Reuters) – With the global economy sputtering and financial markets on the rocks, the world needs reassurance the U.S. central bank stands ready to save the day. Federal Reserve Chairman Ben Bernanke will make a speech on Friday at a lodge in Wyoming’s Jackson Hole, where policymakers and academics meet once a year to talk shop. Last year, Bernanke used the podium to suggest the Fed could help growth by buying long-term bonds, a prelude to a program enacted soon afterward that did just that. However, no grand new plan is expected to be hatched at this year’s meeting. In part that’s because the Fed already unveiled a new policy tool this month when it pledged to keep interest rates near zero into 2013. Central banks rarely make such promises, so consider that a big move. But the world grows more nervous every day that a new recession lurks around the corner. Economists see rising risks that U.S. growth could evaporate, while Europe languishes in a debt crisis. Even strong performers like China and Brazil show signs of slowing. Moreover, stocks have plunged, further threatening the economy because consumers could pull back if they sense their retirement savings are dwindling. So at the very least, Bernanke will be expected to hold our hands a little when he speaks. “Markets are increasingly hoping there will be some signs that the Fed will coming running to the rescue,” said Paul Dales, an economist at Capital Economics in Toronto. Most economists expect Bernanke will explain what’s in his policy toolbox while promising to use those tools if necessary. Markets will hush when he begins his speech, and he will be mindful not to disappoint. EURO BACKSTOP One danger looming over the world economy — and which could goad Bernanke into more action — is the prospect that the European crisis could worsen. Investors are nervous that some countries might not pay back their debts, so they are demanding some European governments pay higher interest rates to borrow. Ireland, Portugal and Greece currently cannot borrow on the market, and now market forces appear to be tilting against larger countries, threatening to create a much larger crisis. Policymakers are scrambling to contain this, with the European Central Bank buying Italian and Spanish bonds this month. But the ECB is internally divided over that move, creating further anxiety for investors. On Monday, the central bank will release figures that could show how committed it is to propping up Italy and Spain. A bad reaction by investors to that data — or to revised readings due during the week on U.S. and British second-quarter economic performance — could increase pressure on Bernanke to act. Indeed, many people in the market expect the Fed will eventually launch QE3, the name given to what would be the third installment of a program to help the economy by buying assets on the market. “Expectations are for more to happen. It’s just a question of exact timing of when it happens,” said Goldman Sachs economist Andrew Tilton in New York. When Bernanke takes the podium, his speech will be measured against that expectation. (Reporting by Jason Lange; Editing by Dan Grebler)

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United Spends $500M To Improve Planes, Service

August 21, 2011

CHICAGO — United Airlines plans to invest more than $500 million to improve seating on its planes and to create the same look and feel across its fleet. United and Continental merged last year and this is just one part of the two companies’ integration. The airline will be adding flat-bed seats to first and business class cabins on long-haul aircraft, increasing overhead bin space on some jets and adding Wi-Fi to other planes. Former Continental planes will get Economy Plus seating – a coach section with more legroom – and Channel 9, which allows passengers to listen to air traffic control conversations with pilots. The airlines says that by the end of the year 38 planes will have undergone the change with nearly 100 more to be done by the end of March 2012. First and Economy Plus seating will also be added this fall to 29 Bombardier Q400 regional aircraft operated under the United Express banner. The turboprops fly principally out of Houston, Chicago, Newark, N.J. and Washington D.C. Beginning in March 2012, the airline will nearly double the size of the overhead bins on all 152 of the Airbus A319 and A320 aircraft flown by the old United. This will allow for 40 extra bags on the planes. In September, United will begin installing new flat-bed seats, on-demand audio and video in the premium cabins of 12 Continental 767-400s and 14 United 767-300s. As previously announced, the airline has contracted with inflight entertainment provider LiveTV to install Wi-Fi using Ka-band satellite technology on more than 200 Boeing 737 and 757 aircraft equipped with DirecTV. LiveTV is a subsidiary of JetBlue Airways Corp.

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United Continental to spend $550 million on upgrades

August 21, 2011

NEW YORK (Reuters) – United Continental Holdings said on Sunday it would invest $550 million to add overhead storage space on its planes and make other upgrades. United Continental will nearly double the overhead storage space on more than 150 aircraft, and add flat-bed seating on 62 additional long-haul planes. Other enhancements include installing broadband Wi-Fi on more than 200 planes and streaming wireless video on its 747-400 aircraft. The product changes are in addition to the 25 new aircraft, including the Boeing 787 Dreamliner, that United Continental will introduce to its fleet next year, the airline said. (Reporting by A. Ananthalakshmi. Editing by Robert MacMillan)

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US- Salesforce’s Q2 sales jump 38%, increases full year revenue outlook

August 21, 2011

(MENAFN – ProactiveInvestors – N.America) Enterprise cloud computing company Salesforce.com (NYSE:CRM) swung to a net loss in the second-quarter, but sales surged 38%, prompting the company to raise …

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US-Autonomy’s takeover provides boon to technology sector

August 21, 2011

(MENAFN – ProactiveInvestors – UK) Hewlett-Packard’s takeover of Autonomy Corporation (LON:AU.) is further evidence of increasing mergers and acquisitions activity in the technology sector, …

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USA- Gap Q2 profit down 19%

August 21, 2011

(MENAFN) Gap’s chairman and chief executive, Glenn Murphy, said that the San Francisco-based retailer’s second-quarter profit down 19 percent compared with the same period of the previous year, …

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India to boost economic growth by 2017 to 9%

August 21, 2011

(MENAFN) India’s Prime Minister, Manmohan Singh, said that in order for the country to slash poverty, in five years starting 2012, India would enhance its economic growth pace to 9 percent, reported …

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USA- Liberty invests USD204m in Barnes & Noble

August 21, 2011

(MENAFN) Barnes & Noble said that Liberty Media dropped its USD1 billion bid to buy the bookseller company controlled by John Malone and instead would invest about USD204 million in the company, …

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Iran to raise South Pars gas field output

August 21, 2011

(MENAFN) Iran’s Oil Minister, Rostam Qasemi, said that the Islamic Republic would increase the production at the South Pars gas field up to three folds in the near future, in a bid to increase the …

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UK- Rockhopper Exploration shares potentially worth 1114p

August 21, 2011

(MENAFN – ProactiveInvestors – UK) Rockhopper Exploration (LON:RKH) has been busy producing very positive newsflow recently from its exploration work in the Falkland Islands. Its revised resource …

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US- Autonomy Corporation bought by Hewlett-Packard

August 21, 2011

(MENAFN – ProactiveInvestors – UK) US information technology giant Hewlett-Packard is to pay more than £7 billion for business software group Autonomy Corporation (LON:AU.) in a deal that has been …

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UK- BSkyB restricting competition for pay-TV movies

August 21, 2011

(MENAFN – ProactiveInvestors – UK) BSkyB (LON:BSY) suffered a blow today with the UK Competition Commission provisionally finding that its control over pay-TV movie rights in the UK is restricting …

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Spain declares more austerity measures

August 21, 2011

(MENAFN) The Spanish government said that since it attempted to find a balance between slashing its deficit and expanding its weak economic growth, it declared additional austerity measures and cuts …

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Obama urges lawmakers to solve employment issue

August 21, 2011

(MENAFN) President of the United States, Barack Obama, said that members of Congress should place the country before politics, set aside their differences as Democrats and Republicans and act …

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India- Gold imports hit new record

August 21, 2011

(MENAFN) President of the Bombay Bullion Association, Prithviraj Kothari, said that India’s imports amounted to a new record of 963.1 tons last year compared to the previous record of 958 tons, …

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Kenya’s July inflation up to 15.5%: CB Governor

August 21, 2011

(MENAFN) Kenya’s central bank Governor, Njuguna Ndung’u, said that due to a 24 percent increase in food prices, for the ninth consecutive month, in July, the country’s inflation rose to 15.5 …

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Russia- Norilsk offers to buy 15% stake held by Rusal

August 21, 2011

(MENAFN) Norilsk Nickel said that the company offered to buy back a 15 percent stake held by United Co. Rusal for USD8.75 billion as billionaires Vladimir Potanin and Oleg Deripaska battle for …

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Single Tenant Non-Recourse

August 21, 2011

A lender specializing in lending on single-tenant CRE, particularly strong but non-investment grade tenants and secondary markets, recently reentered the market for new loans: Loan Size: $2-$15M Single tenant or owner occupied No government leases Tenant must have annual gross of $50M for owner occupied or $75M for investor deal (leased) BB minimum for office

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Australia- Bain Capital acquires MYOB Pty

August 21, 2011

(MENAFN) Bain Capital LLC’s managing director, Walid Sarkis, said that the company agreed to acquire MYOB Pty Ltd., an Australian business management software maker, for an unrevealed amount to …

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US- Stocks fall at traders worry over weekend

August 21, 2011

(MENAFN – Saudi Press Agency) A growing belief that the U.S. is headed toward recession gave the stock market its fourth straight week of losses, AP reported. The anxiety in the market was …

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Zimbabwe gives foreign firms 14 ultimatum

August 21, 2011

(MENAFN – Saudi Press Agency) Zimbabwe’s government has given foreign companies including miners and banks a 14-day ultimatum to submit plans on how they propose to transfer majority stakes to local …

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Malawi plots risky economic course amid political unrest

August 21, 2011

(MENAFN – Saudi Press Agency) — Malawi’s government begrudgingly unveiled its currency devaluation scheme this month, aimed at getting inflation under control and its fiscal health back on track, …

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UK fund firm Jupitar eyes Europe, rich clients

August 21, 2011

(MENAFN – Saudi Press Agency) Fund manager Jupiter put a brave face on the financial market turmoil that has rattled its core British customers, saying it was pushing ahead with plans to expand in …

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Jon Huntsman Blasts Rick Perry Over Evolution, Climate Change, Ben Bernanke Comments

August 20, 2011

WASHINGTON (AP/The Huffington Post) — Presidential candidate Jon Huntsman is pounding away at rival Rick Perry’s skepticism of manmade global warming and criticism of the nation’s central banker, saying those stands hurt the GOP and make the Texas governor come off as a not so serious national figure. Huntsman, a former Utah governor who was President Barack Obama’s first ambassador to China, has trailed in early polls nationally and in early voting states, leading his campaign to pledge more aggressive attacks on the top candidates. Perry, who entered the race last weekend and has surged to a prominent role, has provided Huntsman with an ample opening to take shots. Perry said in New Hampshire this past week that he didn’t believe in manmade global warming, branding it an unproven scientific theory. He also defended the teaching of creationism in schools because evolution “has some gaps to it.” Huntsman responded in a tweet, saying “To be clear, I believe in evolution and trust scientists on global warming. Call me crazy.” “When we take a position that isn’t willing to embrace evolution, when we take a position that basically runs counter to what 98 of 100 climate scientists have said, what the National Academy of Science has said about what is causing climate change and man’s contribution to it, I think we find ourselves on the wrong side of science, and, therefore, in a losing position,” Huntsman told ABC’s “This Week.” Huntsman said he couldn’t remember a time when “we actually were willing to shun science and become a party that was antithetical to science. I’m not sure that’s good for our future and it’s not a winning formula,” according to interview excerpts released Saturday ABC. The full interview is set to air Sunday. Campaigning in Rock Hill, S.C., on Saturday, Perry didn’t back down, saying he believes the Earth’s temperature “has been moving up and down for millenniums now and there are enough scientists out there that are skeptical about the reasons for it.” Many conservatives question the evidence that shows climate change is happening and the government solutions to stem it. Perry also took on the Federal Reserve and its chairman, Ben Bernanke, when he said the central bank’s leader would be committing a “treasonous” act if he decided to “print more money to boost the economy.” Such action, the governor told a crowd in Iowa, would amount to a political maneuver aimed at helping President Barack Obama win re-election. Huntsman said he wasn’t sure that “the average voter out there is going to hear that treasonous remark and say that sounds like a presidential candidate, that sounds like someone who is serious on the issues.” Perry said Saturday voters are worried about monetary policy. “I’m about representing the American people out here and the American people are really concerned and scared.” Trying to put Perry’s broadside against Bernanke in context, Huntsman said “people are crying out for us to get back to some level of sensibility and this just kind of perpetuates the name-calling and the finger-pointing and the blame game where we want solutions.” “These sideshows,” Huntsman said, take “us that much farther off the ball” from the focus of fixing the economy and creating jobs.

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Facebook Spam Program Catches Innocent Users

August 20, 2011

PITTSBURGH — Facebook has sent notes of apology and is changing automated systems that blocked environmental activists and other people from posting on like-minded Facebook pages. The activists weren’t victims of censorship, but rather an anti-spam computer algorithm that was impersonally doing what it was designed to do. “Facebook is not – and has never been – in the business of disabling accounts or removing content simply because people are discussing controversial topics,” Facebook spokesman Andrew Noyes said in a statement to The Associated Press. “On the contrary, we want Facebook to be a place where people can openly express their views and opinions, even if others don’t agree with them.” The activists were flagged by an anti-spam program and told they couldn’t post for 15 days. Other users, including an animal rescue activist, reported the problem, too. Some have even created new Facebook pages where people who’ve been blocked can commiserate. “Our systems classify over 10 billion actions (suspicious logins, friend requests, etc.) and pieces of content (messages, Wall posts, etc.) every day,” Noyes said. “Of course, no system is perfect, and we do sometimes make mistakes.” The activists weren’t blocked by a page administrator for making off-topic posts or for offering questionable commercial services. They couldn’t even post to pages run by people who agree with their views. “The first feeling was surprise, because I’d been doing this for over a year, with no problem,” said Gloria Forouzan of Pittsburgh, who has been very active in protests over natural gas drilling. “Then I found out a few others were blocked, and we all started getting angry.” Forouzan and others said this week they still don’t know what they did to trigger the blocks. Their reaction also shows just how important Facebook has become to a wide range of groups who use the free service to network and spread messages. Pro-gas industry groups also have their own Facebook pages, too. Facebook didn’t provide details of the problem. To do so, they said, might help spammers find ways around the anti-spam software. Others note that people would complain if Facebook weakens its anti-spam programs too much, since spam would surge. “Navigating that exact balance is always quite tricky. It’s automated, done by algorithm, blind to the political value of the message,” said Jules Polonetsky, the former chief privacy officer for AOL, and now a director of the Future of Privacy Forum, a Washington, D.C. think tank. Forouzan said she posts links and comments to Facebook pages critical of gas drilling “every day, several times a day.” She said the posts only relate to hydraulic fracturing, or fracking, a process which injects chemical-laced water deep underground to break up shale rock and allow natural gas to escape. “Never jokes, never pat-the-bunny stuff,” she said. Experts agree that Facebook and other social media sites must use automated programs to protect against spam, but said more can be done to protect innocent people from losing access. Erica Newland, a policy analyst at the nonprofit Center for Democracy & Technology in San Francisco, which promotes a free Internet, said that when Facebook notifies someone that they’ve been blocked from posting, it needs to provide a link for legitimate users to appeal. Facebook has an appeals process for people whose personal accounts were disabled, but doesn’t appear to have one for the 15-day spam sentence. That lack of an appeals process is one of the things that angered Burr Hubbell, a Pawling, N.Y., critic of gas drilling. “I can’t figure out how to even get a response to an e-mail, let alone talk to a person,” said Hubbell, an attorney and stay-at-home-dad who was blocked about a week ago. Hubbell said that during last year’s Gulf oil spill he posted a lot of comments on Facebook pages, and at one point he got warned about posting comments too quickly. But with the recent block, he said, “This came without any warning at all.” Late Thursday, Hubbell and others got this message from Facebook: “Your account was mistakenly blocked from posting on Pages. We apologize for any inconvenience this has caused. We’ve lifted the block from your account, and you should now be able to post again.” On Friday morning he tried to post again – and got the same message saying he was blocked for posting spam. Now, Hubbell wonders if Facebook has really solved the problem. Newland, the San Francisco policy analyst, said Facebook and other sites face incredible challenges, given the volume of content they handle. And she noted that the 15-day posting ban was a type of warning, since the activists weren’t kicked off Facebook. “They have created their own rules, and are trying to enforce these rules, and are trying to do so in a generally fair way. Facebook’s relationship to the content is very different from a newspaper,” she said. Many other people have had similar problems with social media, she said. “The decision that a company makes about when to remove content can have a real impact on discourse,” Newland said. “It certainly highlights the need for greater transparency from Facebook.” Facebook’s problem isn’t new. Polonetsky said that during the most-active era of Internet spam, AOL’s automated programs were catching and discarding 1 billion pieces of suspect e-mail every day. He also noted that since Facebook is free, it won’t have huge customer-service call centers. And even if it did, the staff wouldn’t be able to make complicated decisions about whether someone had been improperly blocked. Forouzan and others who were blocked made regular posts to the Facebook page Gasland, which was originally set up to promote the controversial documentary of the same name that sharply criticized natural gas drilling practices around the country. The film, nominated for an Academy Award, has been equally criticized by the industry and some independent commentators for exaggerating the risks and negative impacts of drilling. The page has grown into a kind of national bulletin board on the issue of fracking, and now has 58,921 members. Josh Fox, the director of Gasland, said Facebook has been a tremendous resource, and he understands the challenge it faces. He also wants the activists to get their posting rights back. “I don’t think that Facebook is editorializing at all. It’s clear there is a big problem with spam. I don’t want spam flooding the page either,” said Fox, who wants the activists to get their posting rights back. “I do think for the most part people are playing fair, and they’ll work this out,” Fox said.

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Tom Vander Ark: No Big Ideas?

August 20, 2011

Neil Gabler suggested in last Sunday’s New York Times that there are no more big ideas. Compared to the big thinkers of the past, the USC prof laments “If our ideas seem smaller nowadays, it’s not because we are dumber than our forebears but because we just don’t care as much about ideas as they did.” He admits some big thinking has just migrated to the marketplace but dismisses the greedy bastards trying to make a buck from “intellectually challenging thoughts.” About consumer electronics, Gabler says “these ideas may change the way we live, they rarely transform the way we think. They are material, not ideational.” This article has bothered me for a week because it doesn’t reflect my experience. I have the good fortune to spend all of my time with people engaged in learning innovations. To a person (even the capitalists of the bunch) the folks I interacted with this week are committed to educational impact at scale. I appreciate that impact is different than purely intellectual pursuits, but it often incorporates big ideas and always includes a challenge to conventional wisdom. Here’s a sample of 10 folks I talked to or talked about in the last five days: • An audience at the PDK/Gallup announcement with big questions about what we want students to know and about inequities in this American life. • A computer scientists devoted to building teacher capacity in K-12 and married to a scientist working on longevity and brain preservation. • A foundation exec trying to double the number of Americans with college degrees. • A former high-tech CEO that is committed to creating the best university in the world. • A tech exec that moved to Africa to build a network of high performing slum schools. • Three young tech execs that sold a company and are now building an information platform that will transform college preparation. • A video producer that has turned his attention to literacy with engaging video of young people debating great books. • A fund manager that devotes a lot of his time and resources to developing extraordinary urban secondary schools. • A 24-year-old that wants to set the standard for how all learning content will be shared • A former governor promoting deeper learning and gap-closing strategies None of these folks will spend the fall reflecting at Walden Pond, but helping more young people develop the intellectual capacity to connect with the idea economy is the most important work anyone can pursue, in my book. As evidenced by this list, the work of social enterprise often includes big ideas. As Gabler suggests, it’s easy to point to signs of anti-intellectualism in American, but I am encouraged by what appears to be a growing percentage of people, particularly young people, committed to making a difference. If you want to find big ideas today, look for people committed to impact.

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Al Norman: Dancing on Wal-Mart’s Grave

August 20, 2011

In less than 11 months, Wal-Mart will turn fifty. No longer a company in its adolescent growth spurt, the giant retailer is showing its advancing age. In fiscal year 2011, Wal-Mart’s U.S. store count grew by only 49 units, or 1.3%. In 2010 by only 52 stores, or 1.4%. For some companies that would seem like an enormous expansion — but for Wal-Mart, it’s definitely a powering down mode. Ten years ago, Wal-Mart ‘s U.S. stores division opened 220 new stores — 4.5 times as many units as today. In his August 16th earnings report, Wal-Mart U.S. President Bill Simon admitted that his company was feeling the recession. “We remain concerned about the economic pressure on our customers and the uncertain impact it can have on their shopping behavior.” Some analysts have claimed that the recession was forcing shoppers into the waiting arms of Wal-Mart — but the disappointing comp store sales from the past nine quarters tell a very different story. If you go back to May of 2009 , Wal-Mart’s Chief Financial Officer proclaimed that his company was “in a great financial position.” But even then Wal-Mart was forecasting flat same store sales. But things got worse. By the following quarter , Wal-Mart admitted the sales environment was “more difficult than we expected.” The third quarter “continued to be difficult,” and by the end of fiscal 2010, the company told investors “U.S. sales will be more challenging” in the coming year. By February of 2011 , Wal-Mart was resigned to the reality that “it will take some time to see positive comparable store sales.” Some of Wal-Mart’s woes have been self-inflicted. For many years Wal-Mart has been over-building superstores, packing them in as close as three miles apart. The Ozark-based retailer was cannibalizing its own sales. ‘Old’ stores — sometimes built as recently as the mid-1990s — were being abandoned to build a bigger store down the street. This pattern is still happening today. In Seekonk, Massachusetts , for example, Wal-Mart is proposing a 156,000 s.f. superstore just half a mile from an existing Wal-Mart discount store of almost the same size. This “parking lot hopscotch” is wasteful, and an embarrassment for a company that prides itself on “sustainability.” No surprise then that Wal-Mart Realty currently has 145 empty buildings on its hands — what they call “excess property,” totaling a staggering 12.6 million square feet of dead stores. That’s the equivalent of 217 empty football fields. Based on new store openings in 2011, if Wal-Mart retrofitted the 145 stores it has for sale or lease, it would have enough room to grow in the United States for the next three years — without having to do any new building or engage in ugly site fights with angry neighbors. The other remarkable fact about Wal-Mart as it nears fifty, is that its U.S. division is rapidly shrinking in importance to the overall economic vitality of the company. In 1999 , Wal-Mart’s International segment accounted for only 1.6% of the company’s total net sales. Today, net sales from International stores represents 26% of the company’s total sales. In the past ten years, net sales at Wal-Mart U.S. have doubled — adding $138 billion. But International sales have more than tripled, adding $77 billion. Stores outside of the U.S. have become the beacon for the future of Wal-Mart. While Wal-Mart U.S. sales grew only by .1% in 2011, International sales grew by 12.1%. During the same stores sales slump of the past two years in America, Wal-Mart International has been described by CEO Mike Duke as “an impressive growth engine.” If this International growth is trended forward another ten years, the dominant economic focus for Wal-Mart will have shifted from America to the giant emerging markets of Africa, China and India. The power center will incrementally shift from Bentonville to Beijing. Right before our eyes, Wal-Mart, the erstwhile “Made in America” icon, is year-by-year morphing into China-Mart. As Wal-Mart’s U.S. operation loses momentum, and lack-luster same store sales performance from its overbuilt domestic inventory continues to disappoint, shareholders will suffer from Wal-Mart fatigue, and look for more nimble, faster-growing competitors. At that point in the not too distant future, there will be plenty of people ready to dance on Wal-Mart’s grave. Al Norman is the author of ‘The Case Against Wal-Mart.’ He has been helping communities fight big box stores since 1993. His website is http://www.sprawl-busters.com .

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Verizon Workers Will End Strike Without A Deal

August 20, 2011

NEW YORK — Thousands of striking Verizon workers will return to work Tuesday, though their contract dispute isn’t over yet. The 45,000 employees, who have been on strike since Aug. 7, agreed to return to work while they negotiate with Verizon Communications Inc. on the terms of a new contract. The workers are employed in nine states from Massachusetts to Virginia in the landline division. Among the issues in dispute is the company’s move to freeze pensions and its demand that workers contribute to their health insurance premiums. The company argues that it has to reduce benefits as the landline business deteriorates. More Americans are forgoing such lines in favor of mobile phones. The employees’ unions say the company is profitable and can afford to maintain the benefits. For now, the two sides say they have narrowed their disagreements and have agreed on a structure for the negotiations. The workers will return to work under the terms of a contract that expired Aug. 6. “The major issues remain to be discussed, but overall, issues now are focused and narrowed,” the Communications Workers of America and the International Brotherhood of Electrical Workers said in a statement. Marc Reed, Verizon’s executive vice president of human resources, credited the company’s managers with “ably meeting the needs of our customers” during the 14-day strike. This enabled the company to “withstand the strike without significant disruption to customer service,” he said. The company said it will “quickly address any backlog in repairs and unfulfilled requests for service.”

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Boomers Will Be Pumping Billions Into Anti-Aging Industry

August 20, 2011

NEW YORK — Baby boomers heading into what used to be called retirement age are providing a 70 million-member strong market for legions of companies, entrepreneurs and cosmetic surgeons eager to capitalize on their “forever young” mindset, whether it’s through wrinkle creams, face-lifts or workout regimens. It adds up to potential bonanza. The market research firm Global Industry Analysts projects that a boomer-fueled consumer base, “seeking to keep the dreaded signs of aging at bay,” will push the U.S. market for anti-aging products from about $80 billion now to more than $114 billion by 2015. The boomers, who grew up in a culture glamorizing youth, face an array of choices as to whether and how to be a part of that market. Anti-aging enthusiasts contend that life spans can be prolonged through interventions such as hormone replacement therapy and dietary supplements. Critics, including much of the medical establishment, say many anti-aging interventions are ineffective or harmful. From mainstream organizations such as the National Institute on Aging, the general advice is to be a skeptical consumer on guard for possible scams involving purported anti-aging products. “Our culture places great value on staying young, but aging is normal,” the institute says. “Despite claims about pills or treatments that lead to endless youth, no treatments have been proven to slow or reverse the aging process.” Its advice for aging well is basic: Eat a healthy diet, exercise regularly, don’t smoke. “If someone is promising you today that you can slow, stop or reverse aging, they’re likely trying hard to separate you from your money,” said S. Jay Olshansky, a professor at the University of Illinois-Chicago’s School of Public Health who has written extensively about aging. “It’s always the same message: `Aging is your fault and we’ve got the cure,’” Olshansky said. “Invest in yourself, in the simple things we know work. Get a good pair of running or walking shoes and a health club membership, and eat more fruits and vegetables.” But such advice hasn’t curtailed the demand for anti-aging products, including many with hefty price tags that aren’t covered by health insurance. These include cosmetic surgery procedures at $10,000 or more, human growth hormone treatment at $15,000 per year and a skin-care product called Peau Magnifique that costs $1,500 for a 28-day supply. Another challenge for consumers is that many dietary supplements and cosmetics, unlike prescription drugs and over-the-counter medicines, aren’t required to undergo government testing or review before they are marketed. The Food and Drug Administration and the Federal Trade Commission do crack down at times on egregiously false anti-aging claims, but generally there’s little protection for people who don’t get hoped-for results. Mary Engle, director of the FTC’s division of advertising practices, said her agency focuses on the cases that could cause serious harm, such as bogus cancer treatments that might prompt an ill person to forgo proper care. She said the agency lacks the resources to crack down comprehensively on ads with exaggerated claims that exploit customers’ hopes for better looks or more energy. “Often it doesn’t rise to the level of fraud,” she said. “There are so many problematic ads out there and we really have to pick and choose what we focus on.” In contrast to the caution of mainstream organizations, there are many vocal promoters of anti-aging products and procedures, including the American Academy of Anti-Aging Medicine. It hosts annual conferences in the U.S. and abroad, and claims 22,000 members, mostly physicians. In its mission statement, the academy says the disabilities associated with normal aging “are caused by physiological dysfunction which in many cases are ameliorable to medical treatment, such that the human life span can be increased.” One of the academy’s co-founders is Robert Goldman, a doctor of osteopathic medicine. He contends that much of the resistance to the anti-aging movement comes from sectors of the health and pharmaceutical industries that feel threatened financially – for example by the surging use of over-the-counter nutritional supplements. “It all has to do with who’s controlling the dollars,” he said. Though many anti-aging interventions are expensive, Goldman said people on tight budgets still can take useful steps such as drinking purified water, taking vitamins and using sun screen. “People should be healthy and strong well into 100 to 120 years of age,” Goldman says in a biographical video. “That’s what’s really exciting – to live in a time period when the impossible is truly possible.” Olshansky, who over the years has been among Goldman’s harshest critics, believes there will be scientific breakthroughs eventually, perhaps based on studies of the genes of long-lived people, that will help slow the rate of aging. In the meantime, Olshansky says, “I understand the need for personal freedom, the freedom to make bad decisions.” A look at some of the major sectors in the anti-aging industry: ___(equals) Hormone replacement therapy: Numerous companies and clinics promote hormone replacement drugs, including testosterone for men and custom-mixed “bioidentical” hormones for women, as a way to slow the aging process. Many consumers have seen ads featuring muscle-bound Dr. Jeffry Life, now 72. He used testosterone and human growth hormone in his own bodybuilding regimen and recommends hormonal therapy for some of the patients patronizing his age-management practice in Las Vegas. The FDA has approved hormone replacement drugs for some specific purposes related to diseases and deficiencies, but not to combat aging. “Finding a `fountain of youth’ is a captivating story,” says the National Institute on Aging. “The truth is that, to date, no research has shown that hormone replacement drugs add years to life or prevent age-related frailty.” Dr. Evan Hadley, director of the institute’s Division of Geriatrics, says hormone replacement drugs can have harmful side effects. He said there is a need for more research, such as an institute study of testosterone therapy, to identify the potential risks and benefits. “There is indeed potential that people can be healthier in old age,” Hadley said. “But it still requires evidence about what’s going to help and what’s not.” Hormone drugs can be expensive. HGH shots can cost more than $15,000 a year, according to the institute. A hormone-based dietary supplement known as DHEA (dehydroepiandrosterone), a precursor of estrogen and testosterone, is marketed online for $12.95 per capsule by Utah-based NutraScriptives. Some proponents say over-the-counter DHEA supplements can improve energy and strength, boost immunity and decrease fat. The institute says there’s no conclusive scientific evidence of any such benefits. Life says he’s a staunch advocate of exercise and healthy eating, but insists that hormone replacement therapy, under a doctor’s supervision, is a crucial addition for some men, and that includes him. “There’s no way I could look and feel the way I do if all I had done the last 13 years was exercise and eat right,” he said. “Even if you do everything right, if you have a deficiency in testosterone, you will lose the fight.” Life acknowledged that the cost of testosterone replacement, probably more than $5,000 year and not covered by insurance, could be daunting for some. But he contends the investment pays off in more vitality. “It’s hard to put on price on good health,” he says. ___(equals) Cosmetic Surgery: According to the American Society of Plastic Surgeons, there were 13.1 million cosmetic plastic surgery procedures performed in the U.S. in 2010, a 77 percent increase over a decade. One notable trend is increased preference for less invasive procedures that enable patients to get back to work and social settings without a long leave of absence. The most popular of these is treatment with the wrinkle-smoothing drugs Botox or Dysport. They account for 5.4 million procedures, averaging about $400 per treatment. Other popular noninvasive procedures include soft-tissue facial fillers, chemical peels and microdermabrasion. More invasive procedures come at a higher price. Face-lifts can run from $6,000 to $15,000; the plastic surgeons’ academy reported performing 112,000 of them in 2010. Dr. Peter Schmid, who runs a cosmetic surgery practice in Longmont, Colo., says his field is flourishing because of evolving attitudes among appearance-conscious boomers. A recent Associated Press-LifeGoesStrong.com poll found that 1 in 5 boomers either have had or would consider cosmetic surgery. “Cosmetic surgery has become table talk at home. There’s a lot of satisfaction and acceptance from people who’ve had it, friend to friend, word of mouth,” Schmid said. While the noninvasive procedures cost less than a face-lift, the effects won’t last as long and repeat treatments might be needed several times a year, Schmid said. He advised patients to calculate carefully which type of procedure makes the most sense for them financially. Schmid, who is on the board of the American Academy of Cosmetic Surgery, cautioned against any rush to try new procedures that get a burst of publicity. “There’s a certain vulnerability because everybody’s looking for that quick fix, that fountain of youth,” he said. “Many people will shop emotionally instead of objectively, before something has been tried and tested.” Some critics of the anti-aging industry are supportive of cosmetic surgery, provided the patient can comfortably afford it. Professor Robert Binstock, an expert on aging at Case Western Reserve University’s School of Medicine, told of a recently widowed friend whose spirits lifted after getting the bags under her eyes removed. “If you feel better looking in the mirror in the morning, fine,” he said. “I have no objection to people being narcissistic.” ___(equals) Skin care: One of the industry’s booming sectors is anti-aging skin care, featuring wrinkle creams and facial serums. By some estimates, the U.S. market for cosmeceutical products – cosmetics with medicine-based ingredients – is approaching $20 billion a year. The FDA, which oversees cosmetic safety and labeling, doesn’t require manufacturers to prove the effectiveness of cosmetic products before they go on sale, and many ads make claims which critics say are exaggerated or unverifiable. The American Academy of Dermatology recommends consulting a dermatologist on what skin care products have been proved safe and effective in human studies. Consumer Reports has ventured into the realm of anti-aging cosmetics several times recently, using high-tech optical devices and other scientific methods to assess the products. Last year, the magazine tested nine face serums, available at drug stores for prices ranging from $20 to $65 and all claiming to reduce wrinkles. “After six weeks of use, the effectiveness of even the best products was limited and varied from subject to subject,” according to the review. “When we did see wrinkle reductions, they were at best slight, and they fell short of the miracles that manufacturers seemed to imply on product labels.” Earlier, the magazine tested wrinkle creams. “Even the best performers reduced the average depth of wrinkles by less than 10 percent, a magnitude of change that was, alas, barely visible to the naked eye,” it said. Its top-rated product, Olay Regenerist, cost about $19 at the time of the testing. La Prairie Cellular, the most expensive at $335, was rated among the least effective. Similar conclusions were reached in testing 16 over-the-counter eye creams. “Even among the best-performing products, wrinkle reduction around the eyes was generally pretty subtle,” the magazine said. “After six weeks of daily use, none came close to eliminating wrinkles.” It said the most expensive, Perricone MD at $95 a jar, was no better than cheaper drugstore brands. One recent development in anti-aging skin care is the use of stem cell technology. ReVive’s expensive Peau Magnifique is among the new products, claiming to “recruit adult stem cells into brand new stem cells.” Neither Consumer Reports nor the FDA has conducted any specific assessment of Peau Magnifique’s effectiveness. On a Web site called Makeupalley.com, some customer reviews raved about it; others trashed it as a waste of money. ___ Online: ___

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Farm Aid Shrinks As U.S. Debt Deal Means No Bailout

August 20, 2011

Extreme weather that is reducing yields of corn, wheat, cotton and soybeans is also taking a toll on smaller crops, leaving pockets of losses in a farm economy the government says may produce a record $94.7 billion in profit this year, thanks to higher prices for the crops that do reach harvest and better weather in other parts of the country.

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Stocks Keep Falling As Traders Worry About Looming Recession

August 20, 2011

NEW YORK — A growing belief that the U.S. economy may be headed toward recession gave the stock market its fourth straight week of losses. The anxiety in the market was obvious Friday as the major indexes went from moderate gains early in the day to another sharp loss. The Dow Jones industrial average had its 10th move of more than 100 points in 15 trading days this month. “We just don’t know whether we’re going to have a recession,” said John Burke, head of Burke Financial Strategies. There was little news to help investors determine their next moves. However, JPMorgan Chase & Co. joined other financial firms and cut its forecast for economic growth during the fourth quarter. It’s now predicting growth at annual rate of just 1 percent, down from an earlier forecast of 2.5 percent. That added to the recession fears. Investors disliked the news late Thursday that Hewlett-Packard Co. is planning to exit most of its consumer businesses, including PCs. HP fell 20 percent to a six-year low. HP plans to transform itself into a company that caters to corporations. After the market rose early, some investors sold in case bad news comes out of Europe over the weekend. European investors were also cautious – banking stocks fell near two-and-a-half-year lows, dragged down by rumors about banks’ potential losses on bonds issued by heavily indebted governments. “These things usually break out over the weekend and then you have a mad dash Monday to react to them,” said Mike McGervey, the head of McGervey Wealth Management. The drop late in the day recalled the 2008 financial crisis. Then, many investors stepped up their selling in the afternoon out of fears about news that might break overnight – or on weekends. Lehman Brothers failed on Sunday, Sept. 15. The government took over mortgage companies Fannie Mae and Freddie Mac the previous weekend. The Dow lost 172.93, or 1.6 percent, and closed at 10,817.65. It was down 4 percent for the week. Since July 21 – four weeks and one day – the Dow is down 15 percent. Companies that rely on an expanding economy for higher revenue fell. Caterpillar Inc., International Business Machines and Alcoa Inc. each fell more than 2 percent. The Standard & Poor’s 500 stock index fell 17.12, or 1.5 percent, to 1,123.53. It was down 4.7 percent for the week. All 10 industry groups that make up the index fell. The Nasdaq composite fell 38.59, or 1.6 percent, to 2,341.84. It was down 6.6 percent for the week. Although stocks fell, investors did not continue pushing the price of Treasurys, as they have the last three weeks. The yield on the benchmark 10-year Treasury note was almost unchanged at 2.07 percent, compared with late Thursday’s 2.06 percent. It had been up to 2.11 percent earlier in the day. The yield fell below 2 percent Thursday for the first time as heavy demand sent its price sharply higher. Investors began the week confident after last week’s volatility, the worst the market has had since the 2008 financial crisis. The Dow rose nearly 215 points on Monday when Google, Time Warner Cable and Cargill were among companies announcing multi-billion deals. The market remained relatively calm the next two days. But on Thursday, a stream of bad economic news in the U.S. combined with worries about Europe’s debt problems and sent the Dow plunging 419 points. Since July 21, the market has gone from one crisis to another, and the weakening U.S. economy has been at the heart of the selling. In late July, the concern was the debt debate going on in Washington. In early August, it was the downgrade of the U.S. debt rating by Standard & Poor’s. Since then, worries about the impact of the downgrade have faded, and growing evidence that the economy is slowing has driven stocks down. Signs of a slower economy around the world have only made investors more pessimistic about the U.S. Earlier this week, Germany said its economy grew just 0.1 percent in the second quarter. And Germany is the strongest economy in Europe. Stocks fell Thursday on news of another drop in home sales, weaker manufacturing in the mid-Atlantic states and an increase in the number of people who applied for unemployment benefits. The stock market tends to reflect the expectations that investors have for the economy and company earnings six to nine months in the future. So traders are interpreting the numbers they’re seeing as part of a slide in the economy that will continue for some time. A recession is generally thought of as two consecutive quarters in which the economy contracts, as measured by a country’s gross domestic product. With expectations of growth in the U.S. already low, investors worry that the economy can’t withstand another unexpected event like the earthquake in Japan or the string of bad weather that ravaged the South earlier this year. JPMorgan analyst Michael Feroli said business confidence, household wealth and global growth all look worse than just a few weeks ago. He expects economic growth to be nearly flat into the first quarter of 2012. Next week is likely to bring more volatility. On Friday, the government will give its second estimate of how the economy did during the second quarter. It said a month ago that the GDP grew at an annual rate of just 1.3 percent during the quarter. Economists expect the government to announce a lower reading: 1.1 percent. The GDP report July 29 contributed to the market’s heavy losses. So did the government’s revised estimate for the first quarter: 0.4 percent. Next Friday also brings the Federal Reserve’s annual retreat at Jackson Hole, Wyo. It was a year ago at Jackson Hole that Fed Chairman Ben Bernanke hinted that the central bank would begin buying $600 billion in Treasury securities to stimulate the economy. The buying ended June 30. Now investors want to know if the Fed will act again. But some analysts think that the U.S. economy will continue to grow on its own, although slowly. “The market is thinking that we’re going into a recession, but the data is telling you that we’re not,” said Jonathan Golub, chief U.S. market strategist for UBS. He pointed to an increase Thursday in an index of economic leading indicators that suggested the economy is expanding slowly.

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Iran’s September fuel oil exports to go down

August 20, 2011

(MENAFN) The National Iranian Oil Co. (NIOC) said that in September, Iranian fuel oil exports to East Asia would remain below 300,000 tons, reported Arab News. The company added that the decline …

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Obama Pushes For Action On Jobs

August 20, 2011

VINEYARD HAVEN, Mass. — President Barack Obama says members of Congress should put country before politics, set aside their differences and find ways to get people back to work. The president is vacationing on Martha’s Vineyard in Massachusetts, but he recorded his weekly Saturday radio and Internet address earlier in the week while in Alpha, Ill., during an economy-focused Midwestern bus tour. He said lawmakers in Washington could learn something from the people in small towns in Illinois and Iowa. Obama said there are some things they could get done right away, such as passing a road construction bill or extending a reduction in the payroll tax that pays for Social Security. “These are common-sense ideas – ideas that have been supported by both Democrats and Republicans,” Obama said. “The only thing holding them back is politics. The only thing preventing us from passing these bills is the refusal by some in Congress to put country ahead of party. That’s the problem right now. That’s what’s holding this country back. That’s what we have to change.” Obama has promoted those ideas and others for weeks and didn’t offer any new proposals or rhetoric Saturday. He’s saving that for a jobs package he’s to unroll in a post-Labor Day speech once he returns to Washington. Instead, Obama repeated familiar themes Saturday about working to recover from the recession. “We’re coming through a terrible recession; a lot of folks are still looking for work. A lot of people are getting by with smaller paychecks or less money in the cash register,” Obama said. “So we need folks in Washington – the people whose job it is to deal with the country’s problems, the people who you elected to serve – we need them to put aside their differences to get things done.” In the Republican address, Ohio Gov. John Kasich boasted of reducing Ohio’s budget shortfall and cutting taxes in that state and said it should be a model for the federal government. He said the federal government should get out of the way and let states succeed without raising taxes or imposing regulations, but he also called on Republicans to work with Democrats without compromising their principles. “It’s my hope President Obama will listen to the people and partner with Republicans to get our economy back to creating jobs and producing growth,” Kasich said. “And it’s just as important that Republicans not be stiff-necked about working across the aisle when important work must be done. It’s OK to compromise on policy, as long as you don’t compromise on your principles.” “The playbook we’re following here in Ohio is simple: to grow more, you have to tax less, spend less and regulate less,” Kasich said. “If we can do it here in Ohio, Washington can – and should – do it also.” ___ Online: Obama address: www.whitehouse.gov GOP address: www.youtube.com/houseconference

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Markets Shrink On World Recession Fears

August 20, 2011

PRESS ASSOCIATION — Global recession fears have continued to haunt world markets, sparking another volatile day of trading. The FTSE 100 Index slumped by up to 3% at times, pushing it below the 5000 barrier, as banking stocks tumbled amid fears that they were running out of cash and borrowers would not repay debts. Markets were also dogged by worries that the US and eurozone economies would slide back into recession, crippled by the weight of their debts, while emerging markets such as China would also suffer. London’s leading share index clawed back most of its gains in late trading but still closed down 1%, or 51.5 points, at 5040.8. Its performance was boosted by early gains made by the Dow Jones Industrial Average in the US, which helped to settle traders’ nerves. London’s benchmark index also slumped 4.5% on Thursday after the biggest points fall in its history for nearly three years. Thursday’s rout followed a downgrade of global growth forecasts by investment bank Morgan Stanley and poor economic data from the US. Friday’s falls mean the London market has now lost 5% of its value in the week, wiping £72.7 billion from the value of the UK’s biggest companies. The banking sector saw further falls on Friday. It bore the brunt of the losses on Thursday amid reports that US regulators are checking the American operations of European banks for possible contagion from the eurozone debt crisis. Lloyds Banking was down another 5% on Friday after a 9% fall on Thursday, with Barclays following up an 11% fall with a 2% decline. Taxpayer-backed Royal Bank of Scotland was also down 5%. Its shares are now at 20.8p – less than half the 50p-per-share price the Government paid for its 81% stake in the bank. Shares in Lloyds are at 28.4p, compared with the 63p paid for by the Government for its 41% stake.

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Stocks slide worldwide on recession fears

August 20, 2011

(MENAFN – Arab News) A sell-off in global stocks gathered pace on Friday, reflecting mounting concerns the US economy may be heading into another recession. Major European share markets also …

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