September 2011

Cyprus to start offshore drilling

September 19, 2011

(MENAFN – Saudi Press Agency) Cypriot President Demetris Christofias said on Sunday Cyprus would start drilling for hydrocarbons within the next few days, defying warnings from Turkey which has …

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Envoy of two Koreas to hold talks next week

September 19, 2011

(MENAFN – Saudi Press Agency) Top nuclear envoys from North and South Korea will hold bilateral talks on Wednesday in Beijing, South Korea’s Yonhap news agency said on Sunday. ‘The South and the …

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Explosion in Indian city hospital, 6 injured

September 19, 2011

(MENAFN – Saudi Press Agency) An explosion rocked a private hospital in Agra city of northern Indian state Uttar Pradesh yesterday, leaving six persons injured. The blast took place in the …

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US drone crashes in North-Western Pakistan

September 19, 2011

(MENAFN – Saudi Press Agency) A suspected U.S. drone crashed in northwestern Pakistan near the Afghan border, officials said Sunday. The unmanned aircraft crashed Saturday night near Jangara …

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Clashes kill 15 in Pakistan’s tribal region

September 19, 2011

(MENAFN – Saudi Press Agency) At least fifteen people were killed when militants attacked a check post in the Khyber tribal region in northwest Pakistan, officials said. Four tribesmen and a …

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Bomb kills NATO services member in Afghanistan

September 19, 2011

(MENAFN – Saudi Press Agency) NATO forces say a bomb has killed a service member in Afghanistan. An alliance statement says the service member died Sunday in the south of the country. The …

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Phillippine President starts US visit

September 19, 2011

(MENAFN – Saudi Press Agency) Philippine President Benigno Aquino III headed to the United States on Sunday for a five-day visit. ‘The visit aims to enhance the country’s strategic profile by …

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Turkey says Cyprus oil drilling plans are provocation

September 19, 2011

(MENAFN – Saudi Press Agency) Turkey said on Saturday plans by Cyprus to begin gas exploration in the Mediterranean amounted to ‘provocation’. Turkish Foreign Minister Ahmet Davutoglu told a news …

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Obama to propose USD1.5tr in new tax revenue

September 19, 2011

(MENAFN) US Administration officials said that as President Barack Obama planned to cut the country’s budget deficit, he would propose a USD1.5 trillion in new tax revenue, reported Associated …

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Fear sells: Islamophobia in America

September 19, 2011

(MENAFN – Arab News) Fear sells, and making people fearful of Islam is a lucrative business for some in the US where institutions, movements, and careers have been built by amplifying such fear. …

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US news wire ‘AP’ fails to cover New York protests

September 19, 2011

(MENAFN – Youm7) Their numbers may be small, but the “Occupy Wall Street” protest just 1,000 feet from America’s financial capital has garnered international attention. From everyone, it seems, …

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China’s Sinohydro plans IPO to finance USD2.7b projects

September 19, 2011

(MENAFN) China’s Sinohydro Group Ltd. said that it would arrange an initial public offering (IPO) through which the country’s biggest builder of dams would sell around 3.5 billion shares in order to …

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Japan Not to Tighten Sanctions Against North Korea

September 19, 2011

(MENAFN – Qatar News Agency) The government of Japanese Prime Minister Yoshihiko Noda decided Saturday not to impose additional sanctions against North Korea in light of improving prospects for …

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Three killed in Militants’ Firing in Pakistan

September 19, 2011

(MENAFN – Qatar News Agency) Three persons were killed in an indiscriminate firing by armed persons on the car on way to Tehsil Alizai through an alternative road due to the closure of Tal …

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Turkey sends a warning to the EU over Cyprus

September 19, 2011

(MENAFN – Khaleej Times) Turkey will freeze relations with the European Union if Cyprus is given the EU presidency in 2012, Deputy PM Atalay was quoted as saying by state-run news agency …

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Rough diamond demand growth to hit record

September 19, 2011

By Farah Master HONG KONG (Reuters) – Diamond producer De Beers expects global demand growth for rough diamonds to set a new record this year on the exceptionally strong performance of its key U.S. market and robust demand in China and India, the head of the company’s distribution arm said. Despite global volatility and concerns that the global economy is sliding toward another financial crisis, demand for diamonds was unlikely to be badly impacted because of its safe-haven appeal, Diamond Trading Co (DTC) Chief Executive Varda Shine told Reuters in an interview on Monday. “Taking the United States, China and India, and the Gulf, which is growing very nicely, we believe this year’s demand is going to grow by probably the highest number since we started recording,” Shine said during a visit to Hong Kong, without giving a specific forecast. The diamond miner, which controls about 40 percent of the market for rough or unpolished diamonds, forecast growth for the U.S. market at about 8-9 percent for the full year, exceeding a previous forecast of 7 percent. De Beers is 45 percent owned by mining group Anglo American Plc , 40 percent by South Africa’s Oppenheimer family and 15 percent by the Botswana government. While prices for rough diamonds softened in August after rising to well above 2008 pre-crisis levels in July, Shine said August was typically a quiet month due to the holiday period. “Yes there is nervousness out there but I don’t think diamonds are necessarily going to do badly out of that,” the London based Shine said, adding that with investors shunning government bonds and banking shares, diamonds and gold were providing solid diversification options. PRICE GROWTH TO CONTINUE Diamonds have been one of the best performing commodities this year, with rough diamond prices boosted by a dearth of new mines, low inventories at cutting centers and increasing demand. Shine said prices were likely to continue rising due to the constrained supply situation and voracious appetite from China and India, where she expects double digit growth to be easily sustained. “In the next few years we won’t see as aggressive price growth as we have seen in the last two years, but we still believe that prices are going to continue growing over the next 5-10 years,” she said. Along with the rest of the sector, the company suffered during the global recession as consumers shied away from luxury goods, forcing it to temporarily close mines in the early part of 2009. De Beers, which vies for the spot of the world’s largest diamond producer in carat terms with Russian state-owned miner Alrosa, is looking to the rising spending power of China and India’s young populations as the main engines of growth. The De Beers group last week announced a new 10-year contract for the sorting, vaulting and sales of the diamond production of Debswana, its joint venture with the government of Botswana. This will involve the diamond producer transferring its London based rough diamond sales operations to the Southern African nation by the end of 2013. Shine said the move was to help the Botswana government expand the African country’s skill set and create a sustainable industry that does not rely solely on diamond mining. De Beers production of rough diamonds is likely to be 35-36 million carats this year while it expects to sell around 38 million carats, Shine said. (Editing by Chris Lewis and Jonathan Hopfner)

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Lloyds Banking’s finance director to quit

September 19, 2011

By Sudip Kar-Gupta LONDON (Reuters) – Lloyds Banking Group’s finance director, Tim Tookey, is to quit the partly state-owned British bank to join insurer Friends Life, continuing a series of high-profile management departures since the arrival of new chief executive Antonio Horta-Osorio at the beginning of the year. Lloyds said on Monday that Tookey would remain with the company until the end of February next year, and added that it had already begun looking for his successor. Friends Life, which is a division of British insurance vehicle Resolution , said hiring Tookey would help it in its plans to return cash to investors. Tookey’s departure follows that of former Lloyds retail banking head Helen Weir and insurance head Archie Kane, following Horta-Osorio’s arrival at the helm. Canaccord Genuity analyst Cormac Leech said Horta-Osorio could promote his former colleague at Santander UK , Nathan Bostock, to replace Tookey as finance director. Lloyds had poached Bostock from rival Royal Bank of Scotland in July to head up its wholesale banking, while Horta-Osorio joined from Santander UK to replace Eric Daniels as the new CEO. “Tookey’s departure may have been merely ahead of Osorio lining up a new candidate for the role,” Leech wrote in a research note. Tookey already has experience of working in the insurance industry, having been a finance director at British insurer Prudential before joining Lloyds in 2006. “Tim’s extensive FTSE leadership experience makes him an excellent addition to the team. He will play an important role in building a profitable new business franchise and preparing the business to position it strongly for the full range of potential Resolution exit options,” Friends Life’s chief executive Andy Briggs said in a statement. Resolution was set up a few years ago by entrepreneur Clive Cowdery to acquire and restructure struggling life insurance companies, and in August it said that its half-year profit had more than doubled to 390 million pounds ($616 million). The British government has a stake of roughly 41 percent in Lloyds and holds 83 percent of rival Royal Bank of Scotland after it had to bail out both banks with taxpayers’ money during the credit crisis. European competition regulators have ordered both banks to sell off assets to compensate for their state bail-outs, and Lloyds is currently in the process of looking to sell some 630 retail bank branches. ($1=0.633 British Pounds) (Editing by Greg Mahlich)

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Credit Suisse to pay $206 million to settle German tax

September 19, 2011

By Martin de Sa’Pinto ZURICH (Reuters) – Credit Suisse said on Monday it has agreed to pay 150 million euros ($206 million) in Germany to end an investigation into employees of the Swiss bank by the public prosecutor’s office in Duesseldorf concerning tax evasion. “A complex and prolonged legal dispute has been avoided, with an agreed solution that provides legal certainty,” the bank said in a statement. Later this week the German and Swiss governments are looking to sign a deal on taxing money stashed by German citizens in secret Swiss accounts, a German government source told Reuters on Sunday. The terms of the deal were struck in August when Switzerland and Germany agreed to tax money held by German citizens in secret accounts, estimated at up to 150 billion Swiss francs ($171 billion). The agreement could set a model for agreements between Switzerland and other countries, although they still require the approval of the Swiss and German parliaments. Credit Suisse has come under increasing scrutiny from prosecutors in Germany this year. In August Duesseldorf’s chief prosecutor Ralf Moellmann said his office intended to intensify its probe of Credit Suisse, after the bank’s offices in Germany were raided in February as part of a broader clampdown on tax evasion. Credit Suisse’s payment is higher than that of smaller rival Julius Baer , which earlier this year agreed to pay German tax authorities 50 million euros to close a tax probe and avoid potential legal action against the bank and its employees in the country. Credit Suisse is also the target of a formal U.S. tax probe, and a number of current employees and former employees have been charged with helping U.S. citizens dodge U.S. taxes. The United States is also pushing for a deal similar to the one struck on UBS client data two years ago, seeking details of all U.S. clients with accounts worth at least $50,000 between 2002 and 2010 at banks including Credit Suisse, Julius Baer and Wegelin as well as some regional banks. ($1=0.725 euros) ($1 = 0.875 Swiss Francs) (Editing by Greg Mahlich)

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Moody’s stays negative on states, local governments

September 19, 2011

(Reuters) – Even though the recession officially ended more than two years ago, the still-weak U.S. economy and a pullback in federal support means the outlook for states and local governments remains negative, Moody’s Investors Service said on Monday. The two sectors of the $3.7 trillion U.S. municipal bond market were originally branded with negative outlooks by Moody’s in 2009 as tax revenue tanked. The rating agency noted that revenue collections have improved, but not enough for states to completely replace federal stimulus funding that ended in June. Another reduction is expected as Congress wrestles with ways to reduce the U.S. deficit. “The determination of both political parties to reduce project federal budget deficits is certain to result in reduced funding for federal programs run by the states,” Moody’s said in a report. States also face pressures from Medicaid, the healthcare program for the poor, and big unfunded employee pension liabilities. In addition, there is the prospect of potentially having to bail out fiscally troubled local governments, Moody’s said, pointing to situations in states such as Alabama, Michigan, Pennsylvania and Rhode Island where bankruptcy has been eyed by cities or counties. Still, states have the flexibility to deal with financial strain and support their ratings, Moody’s said, adding the median state rating was Aa1. For local governments, the real estate market remains a problem as property tax collections fell for two consecutive quarters, including a 1.6 percent dip in the first quarter of 2011. Moody’s said that trend is likely to continue into fiscal 2012 “as assessed value declines outpace rate increases.” Meanwhile, the budgets of cities, counties and other local governments are bound to be hit with reductions in state aid as states in turn deal with lower federal funding, according to Moody’s. “Given the numerous challenges facing the local government sector, we believe that rating downgrades will continue to outpace upgrades until we begin to see meaningful economic growth and recovery of property values,” the rating agency said. It added, however, that bond defaults and Chapter 9 bankruptcy filings are expected to remain rare. (Reporting by Karen Pierog; Editing by James Dalgleish)

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AngloGold chief sees gold at $2,200/oz by 2012

September 19, 2011

By Ernest Scheyder CRIPPLE CREEK, Colo. (Reuters) – The chief executive of AngloGold Ashanti Ltd said he expects gold prices to hit $2,200 an ounce by next year and hinted the South African miner could boost its dividend. The bullish forecast from CEO Mark Cutifani on Sunday comes as the uneasy economic landscape — including an unstable euro, recently hamstrung Swiss franc and tenuous U.S. debt situation — push investors into the precious metal. “Given that we’ve already seen $1,900 (per ounce) gold, I don’t think it’s unreasonable to expect a price going up to $2,000, even $2,200,” Cutifani told Reuters during a tour of AngloGold’s Cripple Creek & Victor mine in Colorado. “It’s based on what’s happening in the markets, the issues in the U.S. and Europe.” The price of gold has jumped about 40 percent in the past 12 months alone. Spot prices are currently trading around $1,800 an ounce. “We’re making cash at anything above $1,000 an ounce,” Cutifani said. “So we’re pretty well-positioned now.” Cutifani and other mining executives will meet in Colorado Springs, Colorado, this week for the annual Denver Gold Forum, one of the largest gatherings of its kind in the world. Forecasts for the price of gold will be the talk of the town, but many investors also will be peppering CEOs with requests for higher dividend payouts. While Johannesburg-based AngloGold raised its dividend last month to 12 cents per share, its dividend yield is roughly 45 percent of Barrick Gold’s , the world’s largest miner and a major competitor. AngloGold had $839 million in cash at the end of June, funds that could help it lift its quarterly payout. “We’re already talking about the dividend policy with the board,” Cutifani said. “When you’ve got the free cash flow that we’ve been generating lately, with our growth profile, it’s obviously a front and center conversation. “We’ll have some comments at the next quarterly” earnings statement, set for November 9. A higher dividend could help AngloGold combat a percolating thought amongst gold industry investors that it is better to buy gold exchange-traded funds (ETFs) rather than stocks in actual miners. Buying ETFs let investors take part in gold’s rise without being held back by strikes, power outages or other situations that can halt production, some have argued. SPDR Gold Trust and ETFS Gold Trust are two large gold ETFs. The SPDR Gold Trust, for instance, jumped 41 percent in value in the past 12 months compared with a 9 percent jump in shares of AngloGold traded in New York. “We think in terms of fundamentals we’ve demonstrated we’ve outperformed the ETFs in terms of cash flow from operations,” Cutifani said. “In time the market will get it, and we’ll get credit for that.” (Reporting by Ernest Scheyder; Editing by Himani Sarkar)

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Science Lags As Health Problems Emerge Near Gas Fields, Report Finds

September 19, 2011

by Abrahm Lustgarten and Nicholas Kusnetz, ProPublica On a summer evening in June 2005, Susan Wallace-Babb went out into a neighbor’s field near her ranch in Western Colorado to close an irrigation ditch. She parked down the rutted double-track, stepped out of her truck into the low-slung sun, took a deep breath, and collapsed, unconscious. A natural gas well and a pair of fuel storage tanks sat less than a half-mile away. Later, after Wallace-Babb came to and sought answers, a sheriff’s deputy told her that a tank full of gas condensate — liquid hydrocarbons gathered from the production process — had overflowed into another tank. The fumes must have drifted toward the field where she was working, he suggested. The next morning Wallace-Babb was so sick she could barely move. She vomited uncontrollably and suffered explosive diarrhea. A searing pain shot up her thigh. Within days she developed burning rashes that covered her exposed skin, then lesions. As weeks passed, any time she went outdoors, her symptoms worsened. Wallace-Babb’s doctor began to suspect she had been poisoned. “I took to wearing a respirator and swim goggles outside to tend to my animals,” Wallace-Babb said. “I closed up my house and got an air conditioner that would just recycle the air and not let any fresh air in.” Wallace-Babb’s symptoms mirror those reported by a handful of others living near her ranch in Parachute, Colo., and by dozens of residents of communities across the country that have seen the most extensive natural gas drilling. Hydraulic fracturing , along with other processes used to drill wells, generates emissions and millions of gallons of hazardous waste that are dumped into open-air pits. The pits have been shown to leak into groundwater and also give off chemical emissions as the fluids evaporate. Residents’ most common complaints are respiratory infections, headaches, neurological impairment, nausea and skin rashes. More rarely, they have reported more serious effects, from miscarriages and tumors to benzene poisoning and cancer. ProPublica examined government environmental reports and private lawsuits, and interviewed scores of residents, physicians and toxicologists in four states — Colorado, Texas, Wyoming and Pennsylvania — that are drilling hot spots. Our review showed that cases like Wallace-Babb’s go back a decade in parts of Colorado and Wyoming, where drilling has taken place for years. They are just beginning to emerge in Pennsylvania, where the Marcellus Shale drilling boom began in earnest in 2008. Concern about such health complaints is longstanding — Congress held hearings on them in 2007 at which Wallace-Babb testified. But the extent and cause of the problems remains unknown. Neither states nor the federal government have systematically tracked reports from people like Wallace-Babb, or comprehensively investigated how drilling affects human health. “In some communities it has been a disaster,” said Christopher Portier, director of the U.S. Agency for Toxic Substances and Disease Registry (ATSDR) and the National Center for Environmental Health. “We do not have enough information on hand to be able to draw good solid conclusions about whether this is a public health risk as a whole.” Exemptions from federal environmental rules won by the drilling companies have complicated efforts to gather pollution data and to understand the root of health complaints. Current law allows oil and gas companies not to report toxic emissions and hazardous waste released by all but their largest facilities, excluding hundreds of thousands of wells and small plants. Many of the chemicals used in fracking and drilling remain secret , hobbling investigators trying to determine the source of contamination. The gas industry itself has been less than enthusiastic about health studies. Drillers declined to cooperate with a long-term study of the health effects of gas drilling near Wallace-Babb’s town this summer, prompting state officials to drop their plans and start over. These factors make a difficult epidemiological challenge even tougher. Doctors and toxicologists say symptoms reported by people working or living near the gas fields are often transient and irregular. They say they need precise data on the prevalence and onset of medical conditions, as well as from air and water sampling, to properly assess the hazards of drilling. “There are considerable issues about health effects,” said John Deutch, former director of the CIA and a professor of chemistry at MIT, who heads a Department of Energy panel examining the environmental effects of shale gas drilling, with an emphasis on hydraulic fracturing. “Frankly, I’m not even sure … what serious public health work has been done in making a connection.” The health questions are intensifying at a moment when communities and states are already weighing the benefits and costs of drilling for natural gas. Drilling has brought much-needed jobs and cash infusions to some of the nation’s poorer regions; bullish estimates of U.S. gas reserves promise plenty of drilling development in the future. At the same time, fracking’s lasting environmental toll — particularly the threat it may pose to water supplies — has become the subject of intense debate. Since 2008, ProPublica has reported about hundreds of cases of water contamination in more than six states where drilling and fracking are taking place as well as the difficulties of handling the vast quantities of waste the drilling processes produce. Medical and government groups are beginning to sound alarms about drilling’s potential to damage health. In May, Sen. Robert Casey Jr., D-Pa., wrote to Environmental Protection Agency administrator Lisa Jackson, the Centers for Disease Control and Prevention, and state officials, asking them to investigate illness clusters in Pennsylvania. “Despite being above the normal rate, these disease groupings are often dismissed as statistically insignificant,” Casey wrote. In July, when the EPA proposed new emissions rules for the drilling industry, it warned that without them, there could be an unacceptably high risk of cancer for people living close to major facilities. In August, a national association of childrens’ doctors published a fact sheet detailing concerns about fracking and warning that children are more susceptible to chemical exposure. The group called for more epidemiological research and disclosure of chemicals used in drilling. The gas drilling industry says it supports such research and that health concerns should be taken seriously, but that the public should be careful of jumping to conclusions. “Sound science does exist on these issues,” wrote Chris Tucker, a spokesman for the industry group Energy in Depth, in an email. Tucker pointed to a case in Pennsylvania where a woman alleged drilling had contaminated her water and made her sick. A state investigation found that her water was indeed foul, but that it had been that way long before drilling began. “Eventually, pretty firm conclusions can be made with respect to potential causes and effects. Unfortunately, it takes time to do all that in a rigorous, data-driven way.” No such research is underway on a significant scale, however. Portier, whose agency is a sister agency of the CDC and charged with determining the toxicity of industrial chemicals and preventing exposure to them, says the anecdotal evidence of environmental illness is sufficient to warrant a more serious and systematic approach to studying it. His agency, in conjunction with the EPA, is performing at least five health consultations for communities concerned about health impacts, including two in Pennsylvania. These smaller-scale studies assess health risks based on data already collected, giving a snapshot of a community at a particular moment. But what’s needed is a nationwide study that tracks people living close to drilling over time, Portier said. That could cost upward of $100 million. “We can’t do everything yet,” Portier said. “We only have so much money available.” * * * The number of new natural gas wells drilled each year in the United States has skyrocketed, from 17,500 in 2000 to a peak of more than 33,000 in 2008. Fracking technology, once used in just a small percentage of wells, has made it possible to get gas out of deeply buried reserves and has become an essential part of drilling almost every new well. At the same time, fracking has opened up vast new reserves in the eastern United States. The wells are now being drilled in heavily populated parts of Louisiana, Pennsylvania and Colorado, and even into urban neighborhoods of Fort Worth. Alongside the growth in drilling, reports of fouled water, bad odors and health complaints also have increased. In the few places where basic environmental sampling has been done, the results confirm that water and air pollution is present in the same regions where residents say they are getting sick. Last spring, the EPA doubled its estimates of methane gas leaked from drilling equipment, and said the amount of methane pollution that billows from fracking operations was 9,000 times higher than researchers had previously thought. In Colorado, the ATSDR sampled air for pollutants at 14 sites for a 2008 report , including on Susan Wallace-Babb’s property. Fifteen contaminants were detected at levels the federal government considers above normal. Among them were the carcinogens benzene, tetrachloroethene and 1,4-dichlorobenzene. The contamination fell below the thresholds for unacceptable cancer risk, but the agency called it cause for concern and suggested that as drilling continued, it could present a possible cancer risk in the future. Even at the time of the sampling, the agency reported, residents could be exposed to large doses of contaminants for brief “peak” periods. “Since residents may be repeatedly exposed to these peak concentrations of benzene,” the ATSDR report said, “the concentrations… warrant careful monitoring and exposure evaluation.” In Pavillion, Wyo. , where residents have complained of nerve damage, and loss of sense of taste and smell, EPA superfund investigators found benzene and other hydrocarbons in well water samples, as well as methane gas, metals, and an unusual chemical variant of a compound used in hydraulic fracturing. A health survey conducted there by an environmental group in late 2010 found that 94 percent of respondents complained of health issues they thought were new or connected to the drilling, and 81 percent reported respiratory troubles. The ATSDR, in consultation with the EPA, advised at least 19 families in Pavillion not to drink their water and to ventilate bathrooms when they bathed, in part because volatile organic compounds can become airborne in a shower. But the government stopped short of saying that drilling caused the contamination or their symptoms. In 2009, an environmental sciences firm also found widespread air contaminants in Dish, Texas , a small town in the heart of the Barnett Shale just north of Fort Worth. Wolf Eagle Environmental, hired by the town’s mayor and local residents, collected readings from seven monitoring stations and detected 16 chemicals, including benzene and other known and suspected carcinogens. Benzene exceeded Texas’ exposure standards at three of the stations. Wilma Subra, the environmental consultant who ran the survey in Pavillion, also surveyed Dish residents about their health. About 60 percent of respondents reported symptoms that would be expected in people exposed to high levels of the chemicals found in the air samples, Subra said. Texas’ Commission on Environmental Quality reviewed Wolf Eagle’s work and agreed that the contaminants could pose a long-term health risk to residents. This year, it followed up with air monitoring of its own in nearby Fort Worth. While the agency determined that contamination levels did not present a public health risk, emissions at five test sites violated state regulatory guidelines. The state documented high levels of benzene and formaldehyde — both carcinogens — in those spots. “Evidence like that really gives our agency a bit of urgency in its work,” said Al Armendariz, the EPA’s regional administrator for south central states, based in Texas. * * * One of the byproducts of the natural gas boom has been that environmental agencies set up to handle issues of permitting and waste disposal are grappling with questions of health and epidemiology, subjects for which they have little training or experience. In Pennsylvania and Colorado, regulators are still taking the first awkward steps toward developing processes to track and investigate reports of illness related to drilling. Pennsylvania’s Department of Environmental Protection has received 1,306 drilling-related complaints since 2009 — 45 percent of which alleged water pollution — but officials acknowledged they couldn’t separate out how many involved health issues. Officials with the state Department of Health said they coordinated with the DEP on drilling-related health complaints, but would not respond to questions for this story and denied ProPublica’s request for complaint records, citing privacy concerns. Pennsylvania’s secretary of health has urged the creation of a registry to track health complaints in the state’s drilling areas — at an annual cost of about $2 million — but so far, the governor has not acted upon the recommendation. Records show Colorado’s Oil and Gas Conservation Commission received 496 complaints between mid-2006 and the end of 2008. But officials there, much like their Pennsylvania counterparts, have no way to separate those related to health — even the ones passed on by the state Department of Public Health and Environment — from those concerning spills, or noise, or other disruptions. In an internal government report, the commission separated out complaints related to odors for this period. There were 121. But there are limited public records reflecting what state officials did in response to these reports. Often, records show state officials pursued or fixed the source of an odor, but not whether they tracked any possible health effects connected to the odors. “Those are allegations, they’re complaints, they may or may not be valid complaints,” said Debbie Baldwin, the commission’s environmental manager. “Given the number of people in the state, the number of wells in the state and the amount of activity associated with oil and gas … that’s a small number.” It is unclear from available records whether the commission ever independently evaluated Susan Wallace-Babb’s assertion that toxic emissions harmed her health. The agency’s report shows that inspectors confirmed her story about an overflow and fumes and asked Williams, the company drilling near her home, whether dangerous pollutants had been emitted. The company said no, assuring inspectors “this is a non-incident,” records show. In the segment of the incident report labeled “resolution,” the agency also noted that the company suspected Wallace-Babb “may have been influenced by others annoyed with local gas-field operators.” In response to a request for comment, Williams referred ProPublica to a letter it submitted to the U.S. House Oversight and Government Reform committee after Wallace-Babb testified in 2007. In the letter, the company says that it placed a cap on an open tank near Wallace-Babb’s home and conducted its own air monitoring for pollutants that would post a health risk, finding none. State and federal air monitoring also did not find levels of emissions that would clearly pose a health risk, the company said. “We had employees or contractors at the well site on a regular basis and none of them ever complained about feeling sick as a result of being near the tank,” Williams’ letter states. Colorado’s health department responded to questions by e-mail about how the state tracks health complaints from people in drilling areas. The department’s spokesman said the state had insufficient data to show a relationship between drilling and health issues. “There continues to be much interest in the potential health effects of gas production activities,” wrote Mark Salley. “This department will continue to work with the Colorado Oil and Gas Conservation Commission to protect the public’s health.” * * * In September 2009, Range Resources began drilling a natural gas well near the home of Beth Voyles in one of the most heavily drilled counties in southwestern Pennsylvania. The following spring, Range began filling a giant waste impoundment near Voyles’ home, and wastewater accumulated in puddles on the dirt roads, where the water was sprayed to hold down the dust, according to a lawsuit Voyles filed against the state and interviews with ProPublica. The family immediately noticed a stench, and its dog, which lapped the fluid from the puddles, got sick. A veterinarian determined that the dog had been exposed to ethylene glycol, a component of antifreeze that is also used in hydraulic fracturing. The dog’s organs began to crystalize, and ultimately failed, the vet told Voyles, and the family had to euthanize the dog. A short time later the family had to euthanize a horse after it exhibited similar symptoms, Voyles told ProPublica. “If it’s crystalizing their organs,” Voyles said of her animals, “just how long before it’s going to do that to us?” Then the whole family started getting rashes, aches and blisters in their noses and throats. Her doctors couldn’t pinpoint what was causing their symptoms. “You feel like you’re drugged because your brain’s not thinking,” she said. “We want our life back.” When Voyles began to suspect drilling might be the cause, she had her doctors run blood tests for chemicals known to be used in the processes. The results came back showing high levels of benzene, toluene and arsenic. In August 2010, after several complaints from the area, according to Voyles’ lawsuit, the state Department of Environmental Protection asked Range to treat the impoundment pond for hydrogen sulfide, a toxic gas that can be fatal at high levels and cause nausea, vomiting and headaches in lower amounts. The impoundment was briefly emptied in June, Voyles said, but then filled again in August. Now the rashes are back, she’s lost much of her sense of smell and she says everything tastes like metal. Voyles is suing the DEP, which she says ignored her concerns that the chemicals in her blood could be from the waste in the impoundment nearby, never advised her that its tests showed her well water was also contaminated with an industrial solvent and never issued any violations to Range. Among the clear violations that DEP overlooked, she alleges, was that the waste impoundment did not meet minimum state regulatory requirements. Her lawsuit does not seek compensation, but asks that the agency investigate her complaints according to state regulations. The DEP did not respond to calls requesting comment. Range Resources did not respond to a call from ProPublica about Voyles’ case either. In an earlier report, the company denied there were problems with the impoundment near her home. After seeing several medical specialists and epidemiologists, Voyles still doesn’t know what to do about her family’s health. “They don’t know how to treat us,” she said. * * * In assessing Voyles’ case and others like it, environmental epidemiologists warn that proximity and correlation don’t add up to proof. Even when symptoms and contamination occur in the same place, they say, it doesn’t necessarily mean the contamination caused the symptoms. “You have a community where there is a putative exposure, and a community with putative illness,” said Daniel Teitelbaum, a toxicologist who has spent years examining health issues around drilling and helped frame some of the early research in Colorado. “But you can’t say whether the people exposed are the people who are ill.” In the Pennsylvania case pointed out by industry spokesman Chris Tucker, for example, a woman complained for years of symptoms similar to Wallace-Babb’s. She alleged that drilling activities had contaminated her water with barium. She spoke at anti-drilling rallies and environmental groups used her case. But when Pennsylvania officials investigated, they found her intense exposure to barium hadn’t come from drilling ––it was a natural seepage into her well. Teitelbaum says that collecting measurements of contaminants in the air and water is an essential first step. But he said epidemiologists then set out to track an “exposure pathway,” comparing people exposed to pollutants to people not exposed, and then identifying how the exposure occurred. No such scientific protocol has been developed to examine the gas fields. Without one, the more common respiratory and skin ailments are increasingly accepted as being related to pollution, Teitelbaum said. But whether the more serious symptoms have anything to do with drilling is a complete unknown. “You hear and see everything you can possibly imagine, from miscarriages to multiple sclerosis to brain tumors,” he said. “There is no way to document whether those things are real or not real.” That’s why a health registry — a database to cross reference patterns of symptoms and locations where they occur with water and air tests — is so important, he said. Without this context, complaints from residents may not be taken seriously by doctors or environment officials, partly because people respond to chemical exposures differently. Their symptoms can vary widely and can be difficult to recognize. “If someone comes in and just says I can’t think straight, or I’m really tired or I have headaches, that’s not measureable,” said Dr. Kendall Gerdes, a Denver-based physician who specializes in ecological exposure cases and has seen a number of patients complaining about the gas patch. “Therefore it’s considered psychosomatic by most doctors’ training.” Gerdes said many of the symptoms roughly fit what ecological-disorder specialists in ecological disorders call multiple chemical sensitivity. It’s a sort of catch-all to explain intense reactions to chemical compounds ranging from skin maladies to nerve damage. According to Gerdes, those predisposed to chemical sensitivity are likely to have the most pronounced reactions to chemical exposures in drilling areas. “Characteristically that person will know they can’t be around fresh paint, or can’t wear perfume,” he said. “So to me, it is an unrecognized vulnerability that, when put together with significant exposures, is enough to cause troubles.” The more people with chemical sensitivity are exposed, the more sensitized they get, Gerdes said. Before Susan Wallace-Babb passed out in the field by her truck, she had felt wooziness and headaches. In the weeks after, she couldn’t bear the slightest exposure in places where she had previously felt safe. “I would wake up in the middle of the night in pain and vomiting and so sick I could barely make it to the bathroom,” she said. “And that was with the house closed.” Gerdes and others experts say that whatever affected Susan Wallace-Babb likely also affected others in her community, but they may not have exhibited the same symptoms or reacted as quickly. For all the mysteries surrounding Wallace-Babb’s condition, one thing was clear: When she was away from home, she felt better. When she returned, her symptoms worsened. “That’s probably the clearest association you can make,” Gerdes said. “When it happens several different times there is a correlation.” Wallace-Babb reluctantly decided to move. “My body could not rid itself of the toxins,” Wallace-Babb said. Her doctor warned her that if she didn’t leave, she would never get better. “I thought gosh, there is my dream house. There is my dream all gone and what am I going to do?” * * * By late 2009, stories like Wallace-Babb’s had become common in Garfield County, Colo., where she had lived and the natural gas production had jumped eight-fold in the previous eight years. Rick Roles, whose ranch is dotted with gas wells and used to be near a set of large open-air waste pits, complained of intense fatigue. His eyes and throat burned relentlessly, he told ProPublica during a visit in 2008. Light work made his heart race, and, like Voyles, doctors detected benzene in his blood. Roles was a smoker, which could explain the Benzene. But he also raised goats with prized bucks, and after the wells were drilled, many of the kids were stillborn or deformed. A few miles away another woman, Laura Amos, was diagnosed with a rare adrenal tumor she believed was caused by drilling chemicals that are used in fracking. In 2001, her water well exploded with methane and gray sediment the same day drillers pumped fluids underground to frack a well nearby. By 2003 she was sick. After her lawyers obtained documents from the drilling company, EnCana, showing that the suspected chemical was used in nearby wells, Amos accepted a multi-million-dollar settlement. The terms remain confidential, except for the fact that Amos is no longer allowed to talk about her case. Colorado fined EnCana for failing to contain its drilling waste properly. EnCana has said it disagreed with the state action and that there was no proof that fracking caused Amos’ well problems. Another local couple, the Mobaldis, experienced symptoms similar to those of Wallace-Babb and Voyles, but worse. Steve Mobaldi testified about his wife’s condition at a 2007 congressional hearing. “Chris began to experience fatigue, headaches, hand numbness, bloody stools, rashes, and welts on her skin,” he said. “Tiny blisters covered her entire body. The blisters would weep, then her skin would peel … Canker-type sores appeared in her mouth and down her throat, and they would disappear the next day… The racking pain was unbearable.” Chris Mobaldi developed a pituitary tumor and died in 2010 from a complication in her treatment. In response to these cases and others, state and county health officials conducted a series of monitoring projects that found gas drilling was the area’s largest source of several hazardous air pollutants, including benzene and ozone-forming emissions. For several years, with the cooperation of federal health officials, Colorado monitored air quality in Garfield County, determining repeatedly that while pollution in the area did not exceed health standards, it probably meant there was a slightly elevated risk of cancer and other health effects. But none of those steps were sufficient to help officials determine the precise risk level. They didn’t have a way to systematically record health complaints or to track which residents might have been exposed to which pollutants and when — the essential link in completing an epidemiological study. Still, the incremental studies underscored concern among residents. When Antero Resources announced plans in the spring of 2009 to drill 200 more wells in Battlement Mesa, a golf-course community almost within sight of Wallace-Babb’s old home, about 400 residents petitioned the county to study the potential health impacts before they permitted the drilling. In February 2010, the Garfield County board of commissioners hired researchers at the Colorado School of Public Health to conduct another health impact assessment , analyzing air samples collected by federal and state officials over the years to gauge the dangers of new drilling and how best to mitigate them. Whereas previous research had analyzed samples of emissions from sites across the county, this time researchers focused on the risk to one small, well-defined area, trying to assess the potential of risk increasing over time. The researchers also were tasked with designing a long-term plan to collect data on the drilling once it began, tracing how emissions affected residents. The two-pronged effort promised to be one of the most in-depth analyses so far of gas field health effects in the nation. In a draft of the health impact assessment released in February 2011, the School of Public Health researchers concluded that without pollution control measures, emissions from drilling would likely be high enough to cause disease in Battlement Mesa, including respiratory and neurological problems, birth defects and cancer. The report said that air pollution was a greater risk than water pollution, and pointed to fracking as the stage of drilling that released some of the most toxic emissions. The conclusion was starkly different from past government assessments, which were limited to determining whether pollution was dangerous at the time the samples were taken. The School of Public Health’s view was that the drilling was clearly emitting carcinogens and that sooner or later, this would lead to problems, according to Roxana Witter, an assistant research professor at the Colorado School of Public Health and the lead author of the study. The authors stressed that data from the long-term monitoring phase of their research were needed to fill crucial gaps in evaluating the risks from drilling emissions, but the project wouldn’t get that far. The draft findings were immediately controversial. “It got political,” said John Martin, one of the Garfield County commissioners who oversaw the study. Martin said environmental groups wanted to use the study to stop drilling. “It got blown completely out of proportion and they took advantage of that issue to further their agenda.” The drilling industry was highly critical of the draft and its authors and pressed county officials to delay issuing its final report by extending the period for public comments. Money from outside interest groups had been flowing into elections for Garfield County commission seats and, in November 2010, a commissioner seen as a supporter of more health research was defeated. In May, the commission decided not to extend the researchers’ contract, and a final draft of the report was never produced, limiting the impact of its conclusions. “The study wasn’t finalized,” said David Neslin, director of the Colorado Oil and Gas Conservation Commission. “We always have to be careful about using draft documents which haven’t been finalized.” Martin, one of the commissioners who voted against paying to finish the project, said the commissioners had already gotten what they were looking for: general recommendations for how to mitigate potential health effects. If there are larger uncertainties about how drilling can affect public health, Martin said, that’s for state and federal agencies to study. “We have limitations and this is beyond the scope of what we need to be doing,” he said. For the next phase of the study — the long-term monitoring project — the county and the School of Public Health sought the help of Colorado’s health department. The department had planned to apply to the EPA for funding to measure drilling emissions and track their movement as drilling progressed. But in August, local gas drilling companies informed government officials they would not cooperate with the study unless Garfield County and the state agreed to replace Witter’s team with other academic researchers and start over. “GarCO operators have collectively decided a Garfield County air study, conducted by the Colorado Public School of Health [sic], is unworkable and one they are unable to participate in moving forward,” wrote David Ludlam, executive director of the West Slope Colorado Oil & Gas Association, in an Aug. 3 email that was forwarded to the Colorado Department of Public Health and Environment. Antero did not respond to requests for comment. In an email to ProPublica, Ludlam explained the industry wanted to see a scientific organization like Colorado State University’s Department of Atmospheric Science do the work, rather than Witter. “It is less about a tangible bias and more about an overall environment of distrust in Garfield County resulting from their previous work product being politicized by outside parties,” he wrote. The state health department abandoned, for the time being, its plans for the research one week after receiving Ludlam’s e-mail, withdrawing its application for federal funding. The project’s demise has left the state’s leading environmental doctors discouraged. “It is tragic,” said Teitelbaum. “We are going lickety split ahead with the drilling along the East Coast and nobody knows what the hell is going on. And nobody wants to spend any money on it.” While Teitelbaum and others wait for answers, Wallace-Babb continues to grapple with the ailments that drove her from Colorado. In 2006, she moved to Winnsboro, Texas, a small town two hours east of Dallas. For three years her symptoms gradually improved, until she could work in her garden and go about her normal daily routine. Then, early last year, Exxon launched a project in an old oil field 14 miles away and began fracking wells to get them to produce more oil. Within months, Wallace-Babb’s symptoms returned. Again, she wears a respirator to visit the grocery store. Again, she is looking to move. “It’s one thing if you choose to work for that industry and you get damaged from that exposure,” Wallace-Babb said. “At least they made money. But if you are just living and minding your own business and your life gets torn asunder, it’s different. “I made nothing. I got all the damage.”

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Mohamed A. El-Erian: Market Preview: What to Look for This Week

September 19, 2011

Global markets again find themselves in the uncomfortable back seat of a car driven erratically by policymakers. The hope is that policy responses in both America and Europe will enable them to build on last week’s solid gains and, thereby, improve the outlook for jobs and economic growth. This can happen if most/all of what follows materializes: First, President Obama puts forward on Monday a credible package of fiscal reforms that captures the imagination and confidence of a majority of Americans. Failure would seriously undermine his important September 8th jobs plan and, critically, reduce the likelihood of striking that delicate economic/political balance between immediate job creation and a credible path to medium-term fiscal sustainability. Second, the Fed delivers on widespread expectations that it is able to materially influence economic outcomes for the better. It is not enough for the FOMC to display on Wednesday a relatively united front that underpins a willingness and an ability to do more. It must also show that it possesses effective instruments in what is a rapidly diminishing policy arsenal. Third, and turning to Europe where the ECB has also embarked on a risky path of intense policy experimentation, the central bank continues to offset the persistent shedding of private holdings of Italian and Spanish bonds. ECB purchases must be decisive enough to maintain stable bond yields notwithstanding yet another political scandal in Italy over the weekend, the growing probability of a downgrade in Italy’s sovereign credit rating, and an inconclusive EU meeting. Fourth, the Greek government counters the threat of an October debt default. To do so, it must deliver quickly on three commitments made to the “troika” (ECB, EU and IMF) that is withholding the next bailout tranche: yet another round of fiscal austerity, a realistic privatization program, and sufficient burden sharing by private creditors (or what is known as PSI, private sector involvement) — and all this while maintaining a semblance of peace on the streets of Athens and other Greek cities. (No wonder the country’s Prime Minister cancelled his trip to Washington DC.) Finally, and speaking of Washington, there will be lots of news to follow as policymakers from almost 190 countries gather for the annual meetings of the IMF and World Bank. By Friday, markets will be looking for signals that the key 10-15 players are converging to a common analysis of the risks facing the global economy, appreciate the shared responsibility for addressing them, and are ready and able to pursue coordinated policy responses. This list speaks to how (and why) top-down issues are still important drivers of markets — and will continue to be so. It is not a comfortable place for markets given the recent history of recurrent policy shortfalls and debacles. Yet it is also reality for now. Let us hope that American and European policymakers will finally rise to the occasion. There is a lot more at stake than the health of markets — most importantly, the welfare of millions of un- and under-employed people languishing in a global economy that is slowing rapidly and facing the threat of yet another banking crisis (whose epicenter this time around is on the other side of the Atlantic). If policymakers deliver, they would help unleash the hiring and investing power of a corporate sector that still benefits from cash-laden balance sheets, favorable debt profiles, and healthy income statements. If they fail and, in the process, resume their dithering and bickering, it is just a matter of time until America’s unemployment crisis worsens further, Europe tips into severe recession and greater financial instability and, as a result, millions more suffer around the world. Mohamed El-Erian is chief executive officer and co-chief investment officer of Pacific Investment Management Co. This post originally appeared at CNBC.com .

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No new China stimulus – former deputy central banker

September 19, 2011

BEIJING (Reuters) – China should refrain from boosting credit and fiscal spending again as stimulus measures to avoid fueling inflation and pushing up government debt, Wu Xiaoling, a former deputy central bank governor said in remarks published on Monday. “Currently, China’s economy faces inflationary pressures as well as pressures on government debt, which means we cannot go down the road of expanding both credit and fiscal spending,” the official Finance News quoted Wu as telling a forum. Chinese policymakers should be “extremely wary” about the risk of government debt, said Wu, who is now a senior lawmaker. China is trying to clean up the roughly 10.7 trillion yuan ($1.68 trillion) in local debt — a hangover from a 4 trillion yuan economic stimulus package unveiled by Beijing in late 2008 to counter the global financial crisis. China faces more economic challenges in the fourth quarter of this year and 2012, Wu said, adding that slower economic growth next year would be highly likely. Weak global demand, government tightening steps to target the property sector and a slowdown in investment for highways and high-speed railways as could weigh on China’s growth, she added. Wu did not give specifics. Analysts believe China economic growth in the third quarter will slow from the 9.5 percent pace in the second quarter due to credit curbs at home and weak demand abroad. Annual inflation eased to 6.2 percent in August from a three-year high, while economic activity eased, underlining expectations that the central bank may hold off on further policy tightening amid worries about a global slowdown. The central bank has raised interest rates five times since last October, and increased banks’ required reserves nine times. Wu said the government should not rush to loosen monetary policy as 3-5 percent inflation could be a “normal phenomena” in the next several years. Meanwhile, Chinese regulators should give small companies more opportunities to issue shares and expand the channels for bigger companies to tap the bond market, she added. (Reporting by Kevin Yao; Editing by Ken Wills)

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Michael Thornton: 11 Reasons Why the Unemployment Crisis Is Even Worse Than You Think

September 19, 2011

President Obama recently addressed the nation during a joint session of Congress and the main theme of that address was the need to create jobs, lots of jobs, millions of jobs. The Great Recession has cost US workers millions of jobs and those jobs have not come back as quickly as they disappeared and in many cases those jobs will never return. According to the Economic Policy Institute , “In total, there are 6.9 million fewer jobs today than there were in December 2007.” That is only a small part of the jobs-hole story, a story that is often ignored, overlooked and oversimplified by mass media. The media has failed to present the unemployment problem, with all its associated economically devastating consequences, in the manner it deserves. It’s possible that unemployment facts and figures don’t translate well for advertisers, or they are too cumbersome to present in a two-minute segment. Whatever the reason, the mass media seem to avoid unemployment details as they would avoid describing and filming fresh road kill during a dinnertime newscast. While some excellent blogs clearly explain unemployment data, such as Mish’s Economic Trend Analysis , Calculated Risk and Economic Populist , mass media sites are absent. The unemployment rate remained at 9.1 percent for August. Unemployment to the mass media generally centers on that single point within the Bureau of Labor Statistics (BLS) monthly employment report. There is passing mention of discouraged workers and the underemployed, but the true scale of the jobs crisis is given scant attention considering the magnitude of the problem. What follows are 11 unemployment details that mass media underreports or ignores completely. This list will not be recalled fondly as a top-10 list of best quarterbacks or favorite vacation retreats would, but it’s where the REAL unemployment crisis is exposed. 1. The jobs deficit : That is the total number of jobs lost PLUS jobs that should have been created since the recession began in December 2007; as mentioned above, there are 6.9 million fewer jobs today than at the start of the Great Recession, but that tells only half the tale of the jobs deficit. There is also the matter of creating jobs to keep up with the increase in workforce population. Those new workers include high school and college graduates, and immigrants. The number of jobs that need to be created each month to accommodate new entrants into the workforce ranges from 120,000 – 150,000. Adding together the jobs lost since the recession and the new jobs needed for population growth, the total jobs deficit is estimated to be 11.3 million. A few tax breaks, some targeted workforce retraining and some regulatory relief for businesses are not going to be the forces behind the creation of more than 11 million jobs. A massive effort is required to fill that gaping jobs hole. 2. Filling the jobs deficit: According to EPI : “To fill that gap in three years — by mid-2014 — while still keeping up with the growth in the working-age population — would require adding around 400,000 jobs every single month. To fill the gap in five years — by mid-2016 — would mean adding 280,000 jobs each month. By comparison, over the last three months, the economy added just 35,000 jobs, on average.” It’s striking that the economy has created only 105,000 jobs during the past three months. When considering only the new entrants to the workforce, such as recent college graduates, that three-month span produced a shortage of 270,000 or more jobs. 3. The Birth/Death Model : This is not births and deaths of people, but of businesses. The BLS estimates how many jobs were created or lost by business formations or closings. In August, the BLS estimated that 87,000 jobs were created by new businesses. This is an often discussed employment barometer at many economy centered blogs, but mass media pays it meager attention. Why is that so? It’s a complicated model that can make the head spin of even the most astute employment expert. But there appears to be agreement that the model has a tendency to misread the economic cycle, as Calculated Risk points out, “A few years ago several people — myself included — pointed out that the birth/death model would miss turning points in employment. I thought the model would overstate the number of jobs added as the economy slid into recession (and understate the number of jobs lost monthly during a recession). Sure enough that is what the annual benchmark revision showed during the employment recession.” To illustrate just how wide this model can be off the jobs mark, Bloomberg shows that 824,000 jobs “disappeared” after a birth/death model adjustment in February 2010. That adjustment is important because if it was known that job creation was weaker by 824,000 jobs during 2009, additional job creation efforts could have been considered. At present job creation is stagnant and we won’t know what role the birth/death model has on today’s job numbers until 2012. But if history is any guide, job creation may again be overstated. 4. JOLTS (Job Openings Labor Turnover Survey) : This monthly BLS report gives an indication of the number of available jobs. On the occasion that it is mentioned by the media , it offers only a sliver of the issue, such as the number of unemployed per job opening, which stands currently at 4.3. From the BLS , “The number of job openings in July was 3.2 million, little changed from June. Although the number of job openings remained below the 4.4 million openings when the recession began in December 2007, the level in July was 1.1 million openings higher than in July 2009 (the most recent trough). ” What is missing from that JOLTS report? Plenty. First, the 4.3 unemployed per job opening is limited to the 14 million U3 unemployed (the 9.1 percent). But those aren’t the only unemployed wanting a full-time job. There are the 2.6 million marginally attached workers, 8.8 million underemployed (those who want full-time work, but are working part-time). I’m not going to include the 3.9 million non-unemployed unemployed (explained later). When those 11.4 million workers are included with the 14 million U3 unemployed, there are 25.4 million workers and 3.2 million jobs, or 8 unemployed or underemployed workers per job opening. The second issue with JOLTS is that it doesn’t distinguish whether the available jobs are full-time or part-time. According to a BLS representative “Part-time jobs are included in our job openings counts; however, we do not distinguish between full and part-time positions. We only ask if the position exists, not which type of position it is.” It’s important to know how many job openings are part-time, since part-time jobs usually pay less and offer fewer, if any, benefits. Extrapolating from the BLS ” Employed persons by class of worker and part-time status ” data, there are 139,627,000 employed workers, of which 27,034,000 are part-timers. More than 19 percent of all workers work part-time. If nearly 20 percent of all available job openings are part-time, there are only 2.56 million full-time jobs for 25.4 million unemployed and underemployed who want full-time work, or 10 workers for each available full-time position; more than double the 4.3 workers per job opening touted by most media outlets. 5. The participation rate : Is, according to the BLS, “The labor force as a percent of the civilian noninstitutional population.” Or, more simply, the percentage of the working-age population that is working or is actively looking for a job. The participation rate rose 0.1 percent in August to 64 percent, which is slightly above the 27-year low recorded in July of 63.9 percent. If more jobs were available would there be more participation? More than likely that would be the case. The mass media very seldom mentions this point, but the participation rate shows the potential number of people waiting on the sidelines for the job market to improve before they jump back in. A couple of striking graphs of the historical participation rate can be seen at ZeroHedge and BLS. 6. Marginally attached workers : From the BLS, “These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.” I know, it’s not an easily digested description, but it’s a population of unemployed that want to work, but for various reasons have not looked for work recently. Currently 2.6 million workers are considered marginally attached. If they are included in the unemployment rate, that rate increases from 9.1 percent to 10.6 percent. 7. The underemployed : Who are the underemployed? “The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers). These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job,” states the BLS. The August employment report indicated that underemployment increased from July by 400,000 to 8.8 million. Part-time jobs range in hours from one to 34, any job of more than 34 hours is considered full-time work. That might not be the case in the real world where a full-time job is considered 40 hours, but that is the case according to the BLS. While some believe that part-time jobs eventually translate into full-time jobs, that hasn’t been the case during this recession, as the linked graph from Calculated Risk illustrates . From 2000 to 2008, the number of underemployed ranged between 3 and 4 million. There are currently 4 million more unemployed than at the start of the recession. Businesses would need to see a dramatic uptick in business to place 4 million more part-timers into full-time slots. The “real” unemployment rate increases to 16.2 percent when the underemployed and marginally attached workers are considered. 8. The not-unemployed unemployed : Yes, there is a point at which the BLS stops considering an unemployed person unemployed. That point is reached when an unemployed person has not looked for a job in the previous 12 months. When asked, the BLS replied, “The 3.9 million individuals not in the labor force that you are referring to responded that they wanted a job, but had not looked for a job in the last 12 months. They are not considered unemployed because they had not actively searched for work in the four weeks preceding the survey.” I recall no mention of these 3.9 million from any mass media outlet. This 3.9 million are the most discouraged of discouraged workers, but if the jobs market was improving, these millions would start to become part of the unemployed once more. If these 3.9 million were added to the “real” unemployment rate (U6) the rate would increase from 16.2 percent to 19 percent. Nearly one in five American workers is either unemployed or underemployed. Why isn’t that disturbing fact in the media spotlight every day? 9. The long-term unemployed : These 6.0 million are the jobless who have been looking for work for 6 months or more (this does not include the not-unemployed unemployed). Long-term unemployment receives occasional mass media recognition, but it scratches only the surface. There are subsets of the long-term unemployed that show the depth of the problem more clearly. The 6.0 million long-term unemployed represent 43.1 percent of all unemployed. Of that 6 million, 4.458 million have been jobless for 52 or more weeks and within that group 2.040 million, a record high, have been unemployed for 99 weeks or more (not to be confused with the “99ers” explained below). Even more startling than those numbers is the lack of response by lawmakers. 10. 99ers : These long-term unemployed have exhausted all unemployment benefits (not all unemployed collect unemployment benefits). The name “99ers” comes from the fact that some collected benefits for up to 99 weeks. It’s a misnomer in the sense that only about 25 states are eligible for the 99 week maximum; many unemployed exhausted benefits in as little as 60 weeks. Official statistics are not kept for this unemployed population. When Mish Shedlock of Global Economics Trend Analysis was asked about the 99ers population, he contacted Tim Wallace. Wallace has been digging into long-term unemployment data to try and weed out the number of unemployed who have exhausted all unemployment benefits. His most recent efforts show that, “we can safely assume that 3,058,152 people have exhausted all benefits — they are no longer covered on either sets of (unemployment) rolls.” But it doesn’t end there, using some additional Department of Labor data Wallace pries out another 2.0 million 99ers, for a combined 5.1 million. Other 99ers estimates range from 1.5 to 5.0 million, but as the linked graph at Here come the ’99ers at Calculated Risk illustrates; the number of unemployed that are exhausting unemployment benefits is rapidly increasing. While there may be disagreement about the total population of 99ers, Wallace concludes, “There is absolutely NO EXCUSE for this to not be a readily accessible piece of data daily. After all, Walmart can tell you how many strawberry Pop Tarts they sold yesterday.” There is also no excuse for the mass media ignoring this vast unemployed population and not taking agencies to task for not reporting accurate 99ers data. Millions of additional unemployed will become 99ers immediately unless extended unemployment benefits are renewed in December. A worker laid off today will be eligible for only 26 weeks of state benefits unless an extension is approved by a much divided Congress. How can an economy function when so many are out of work and have exhausted unemployment benefits? (To view Wallace’s report, go to, How Many Unemployed Have Exhausted All Benefits? ) 11. How many unemployed collect unemployment benefits? It may seem reasonable to assume that all 14 million unemployed collect unemployment insurance benefits, but that is not the case. In September 7.17 million unemployed collected benefits, which is only 51 percent of all unemployed (U3, the 9.1 percent). Surprisingly, on average just one third of all unemployed are eligible for unemployment benefits at the state level (2011 data). As an example, temporary staff, self-employed and recent high school and college graduates may be out of work, but not eligible for benefits. Eligibility rates range from 57 percent in AK and PA to TX at 21 percent. Each state can set its own guidelines regarding eligibility requirements. When someone tells you they are unemployed, it’s more than likely they are not collecting unemployment benefits. Many pundits and some GOP lawmakers excoriate all unemployed for being lazy and enjoying life on the dole. Sen. Jim DeMint (R-SC)recently said, “People are gaming the system and refusing to take jobs because they get unemployment benefits and food stamps.” That naïve and cruel assessment disparages all unemployed, but it’s particularly insulting to the majority of unemployed who aren’t eligible to collect or have exhausted unemployment benefits. If Sen. DeMint and his ilk want to see where the system is being gamed, he may want to look at Wall Street instead of Main Street. What message can be taken from this list of realistic and discomforting unemployment figures? The bottom line is that unemployment is much worse than the 9.1 percent unemployment figure pushed by the media and many lawmakers; in fact it’s considerably worse. Mass media’s inability to communicate the depth of the jobs crisis is one reason the response to it has been primarily weak and ineffectual. If the media mutes the crisis, lawmakers and corporations will continue to act slowly and impotently, forcing millions of American families to suffer needlessly. Unemployment and jobs creation are national emergencies demanding focused attention with a wide-ranging and rapid response. This American jobs disaster will not vanish if neglected, but what will vanish are the hopes, dreams and financial well-being of millions of hard-working Americans. This was first published at AlterNet.org .

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UK’s Cable plans clampdown on executive pay

September 19, 2011

By Tim Castle and Mohammed Abbas BIRMINGHAM (Reuters) – British companies will be required to publish more details on the pay packages of top executives under a government drive to fix a “disconnect” between remuneration and corporate performance, Business Secretary Vince Cable said on Monday. Pay at the top of Britain’s biggest companies has soared in recent years while salaries for workers have barely kept pace with inflation, a politically sensitive issue while the coalition pursues a tough deficit-cutting austerity program. “The disconnect between pay and long-term performance suggests that there is something dysfunctional about the market in executive pay or a failure in corporate governance arrangements,” Cable said in extracts of a speech released in advance. “We want to explore what is causing it and how it can be addressed,” he added. The announcement, due to be made to members of Cable’s Liberal Democrat party at their annual conference, follows previous coalition moves to limit the high level of bonuses paid to bankers, blamed for precipitating the 2008 financial crisis. It comes as the center-left Lib Dems seek to boost their low poll ratings by ruling out cutting top income tax rates for the most wealthy – an ambition of their Conservative coalition partners – before reducing taxes for the low-paid. The public would only accept the government’s austerity program to reduce the deficit inherited from the banking crisis if the cuts were seen to be fair, Cable said. “There is a great sense of grievance that workers and pensioners are paying the penalty for a crisis they did not create. I want a real sense of solidarity, which means a narrowing of inequalities … and the wealthy must pay their share,” he added. In recent weeks Cable has been meeting institutional investors to see how to curb what he recently described as “ridiculous levels of remuneration” that were going unchallenged at companies despite little evidence of a correlation with performance. Bonuses for senior executives at leading UK companies jumped from 48 percent to 90 percent of their salaries between 2002 and last year for the same level of performance, Britain’s High Pay Commission said this month. Cable will now seek wider views on how to address the issue, including giving shareholders the right to vote down directors’ pay packages. At present shareholders can vote on the remuneration of executives but their decision is not binding on the company. The government will also propose tougher disclosure in company reports from October 2012 on the breakdown of director’s pay packages. Remuneration committees would be required to justify the pay plans, as well as showing how much executives would be paid in the coming year if performance targets were met.

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UTX exploring Goodrich takeover: sources

September 18, 2011

By Andrea Shalal-Esa and Soyoung Kim (Reuters) – Diversified manufacturer United Technologies Corp is exploring a takeover of aerospace company Goodrich Corp but the two sides are not yet close to a deal, according to a source with knowledge of the situation. Reuters reported on Friday that United Technologies was lining up $10 billion to $20 billion in financing for a U.S. acquisition that could shape up as its biggest takeover in a decade. Investors bid up shares of aerospace companies on the news, with speculation increasingly focused on Goodrich. The stock rose to as high as $112 in after-hours trading on Friday, valuing Goodrich at $14 billion. A move by United Tech could mark the start of a more aggressive phase of consolidation in the aerospace sector to prepare for cuts in defense spending in the United States and Europe. Mergers could help the industry lower costs and boost capacity to meet booming demand for components used in commercial aircraft. Goodrich is benefiting from rising demand for equipment for large planes and sales tied to servicing and parts. The company has solid exposure to growing commercial aircraft programs. For instance, it supplies a host of parts to EADS unit Airbus, and will design the nacelle and thrust reversers for the Pratt & Whitney geared turbofan engine that is an option for the A320neo aircraft family. Charlotte, N.C.-based Goodrich also supplies electronic braking and a host of other critical systems to the Boeing 787 Dreamliner, which got U.S. government approval to enter into commercial passenger service last month (August 2011). Defense and space accounts for about one-third of total Goodrich sales. The company has focused its military strategy on products that guide missiles and gather and process intelligence data. CEO Marshall Larsen, a 34-year company veteran, told Reuters in June that he’ll reach Goodrich’s mandatory retirement age of 65 in a couple of years. He was named chairman, president and CEO in October 2003. Officials at United Tech, which makes products ranging from air-conditioners to helicopters, declined to comment, as did those at Goodrich. (Reporting by Andrea Shalal-Esa in Washington, Soyoung Kim in New York and Philipp Halstrick in Frankfurt; Writing by Michael Erman in New York; editing by Gunna Dickson)

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Conflict gold guidelines "No. 1 priority" for LBMA

September 18, 2011

By Jan Harvey MONTREAL (Reuters) – The London Bullion Market Association is working out ways for refiners on its Good Delivery List to avoid falling foul of new regulations against conflict gold as a “number one priority,” LBMA chairman David Gornall told Reuters on Sunday. Due diligence requirements for gold sourced from the war-torn Democratic Republic of Congo are currently under consideration by both the United States and the Organization for Economic Cooperation and Development. A proposal being considered under the Dodd-Frank financial oversight law would require companies to disclose whether they use “conflict minerals,” like gold, from the DRC. The LBMA, whose Good Delivery List of refiners is the gold industry’s chief source of high-quality bullion, says the proposal could be disruptive to the refining industry if it is not swiftly addressed. Speaking on the sidelines of the LBMA’s annual conference here, Gornall said: “We will issue guidance on conflict gold due diligence so that it is practical for the refiners and credible for the outside world.” “The aim would be that the LBMA’s guidance will become the OECD’s guidance. We are after all the ultimate authority on physical gold, and therefore there can’t be anybody better placed to do it than us,” he added. The association hopes to deliver guidance to members by the end of this year or early 2012, he said. The World Gold Council, the largest industry group representing global gold miners, said in June that it had proposed standards allowing miners to certify their gold production as conflict-free. But refiners have additional problems in proving the provenance of scrap gold they receive, 1,645 tons of which was returned to the market last year. “If you’ve got primary mined gold, it is pretty straightforward where it’s come from and you can prove it,” said Gornall. “It’s the scrap that is” the problem. “We are going to have to get to the stage where… we take everything that is in existence at the moment from a good delivery refiner to be considered as conflict free,” he said. “We have to draw a line and grandfather everything prior to that.” As to whether this prove acceptable to U.S. regulators, he added: “That remains to be seen.” Conflict minerals are a hot topic in the United States. Signatories to the Electronic Industry Citizenship Coalition (EICC), including Apple and Microsoft , have agreed to curb the use of uncertified minerals from the DRC. The EICC is pushing gold refiners to agree to spot checks on their activities, Gornall said. “We are trying to do something on a broader basis, that doesn’t involve individual audits through every one of the good delivery refiners,” he said. “If we can get to a (regulation) that covers not just the conflict gold area but every part of due diligence, we will have done ourselves and the market a great service.” The LBMA’s conference has been extended into Tuesday afternoon to include a special session on gold market regulation, said Gornall, who took over as the association’s chairman in June. Regulatory issues are set to become a key concern in years to come as broader financial market regulation spreads, one LBMA delegate said on the sidelines of the event.

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Penny Herscher: Five Keys to Leadership for Women in Technology

September 18, 2011

Do women lead differently than men? Yes, usually. Do women face more barriers than men? Frequently. But do women sometimes hold themselves back ? Yes. Tech companies are competitive and dominated by men. Fact. So how, as a woman, do you adapt and learn how to lead in that environment? Based on my experience growing up professionally in tech, and as a hardcore tech CEO (of FirstRain ), here are a few of the keys that make a difference. You don’t have to deny that you are a woman or act like a man, but you do need to pay attention and lead in ways that make your impact to the business bottom line stand out. Here are five keys to leadership and each one is the flip side of a common soft spot for women: 1. Embrace making decisions — they are fun Companies need people who are decisive and courageous. A common issue with new entrepreneurs and young managers is that they hesitate to make decisions. It’s tough when you don’t know what to do, but it’s better to make a decision quickly and decisively, and be ready to change it if you are wrong, than to hesitate, hash it over many times, or wait for someone else (your board, your team, your boss) — or even worse time and delay — to make it for you. Making decisions gets easier when you learn to trust yourself and your judgement — you can feel in your gut and in the tips of your fingers what to decide. Never underestimate your own intuition — it’s not a myth, it’s real. I simply did not understand or trust this until I read Blink — I recommend all new managers read it. I am not always right, and I definitely need and value advice, but I learned to trust, move forward fast, knowing that if I am wrong I’ll also figure that out quickly, or someone I trust will correct me. 2. Never ask whether, ask when This is a mindset that many men are good at. They come out of of the womb asking when they’ll get that raise, when they’ll be promoted, when they’ll go kill that bear, not whether. Women so often talk about whether. Should I push for that promotion, should I ask for more money, will I get funded, will they promote a woman, will they like me? Working with mostly men, and a few women, I see a pattern in the successful women. They don’t ask whether they have a right to what they want, they assume they’ll get it. They don’t particularly care what other people think of them, they care about getting the job done. They act like they are competent, it’s in their future, they are going to get it, and there is not any question of whether, just when. 3. Hire your betters The fastest way to build a great team is to hire people who are smarter and more experienced than you in their field, and if you are technical these are probably mostly men today. It can be intimidating to interview people who are senior to you — I know. It can be downright frustrating when you talk to some men who, when they meet you, talk down to you because you are blond and forget that you are interviewing them (can you tell I’ve been through this?). Remember, you don’t need to be “the man” — you need to get the job done better than anyone else. Stay focused on your vision for your team. A group of people who work for and with you, all of whom are smarter than you in some dimension but who want to climb the hill with you. Plan to grow into being their leader and if they are good people they will give you space to do it. Give in to fear of being usurped and you’ll fail because you don’t hire a strong enough team. I confess I used to always try to hire my “elders and betters.” As time goes by the first becomes more difficult, but thankfully the second is still easy! 4. Speak up and be sure you are heard I have often heard the complaint that a woman will say something in a meeting, not have her idea acknowledged and then a man will say the same thing and everyone will jump on a agree. There are even TV ads that make fun of this reality. Given that this does happen, develop some tactics that help you be heard, and help you confirm that you have been heard. State your input and then ask a question that causes your co-workers to engage in your idea. Repeat yourself in different words. Go to the white board to sketch your concept — whether it is a process or a product idea — it’s really hard to ignore the person at the white board. If you are in an online meeting call on a co-worker by name to get their direct input on your idea. What does not work is either getting annoyed that you are not heard, or speaking your piece and then waiting politely — both are easy ways for you to be dismissed. 5. Put the company first and get results And finally — the playing field is not level. Fact. Deal with it. To lead men and get ahead in a man’s world you need to work harder, be smarter and be more ambitious than the men around you. The CEO lives in the place where the company and it’s results are all that matter to her. So practice that. In everything you do put the company first, ahead of your professional needs. Ahead of office politics. This does not mean you don’t have a life. Many of today’s women leaders are married with children; it’s possible, but at work you need to be focused. Drive to results, be sure you get recognition for your results, and you will get ahead and become a leader. Male dominance of tech is not going to change quickly so don’t complain, or hesitate — just get on with it. And if you are a leader men, and women, will follow you. When you look over your shoulder you will know.

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Frank Stewart: Natural Gas: Good for the Economy, Good for the Environment

September 18, 2011

From a perspective of more than three decades of experience in energy program management and regulation, I can truly appreciate the incredible technological and regulatory strides our country has made. And looking back at some of the challenges encountered during my first years of work at the Department of Energy in the 1970s, I marvel at how we’ve met and far surpassed expectations. Since 1970, the total U.S. population has grown by 42%, GDP has grown by 195%, and energy consumption has increased 178%. Yet between 1970 and 2005, our energy intensity and our emission of six principal air pollutants decreased by 53%. Additionally the number of our lakes, rivers, and streams that meet state quality goals is up 33% from 30 years ago. Early environmental laws and regulations established by federal, state, and local governments deserve a major part of the credit for this dramatic increase in energy efficiency and environmental quality. And our economy played an important role too. As one Department of Interior analyst observed , “Cleaner air is a direct consequence of better technologies and the enormous and sustained investments that only a rich nation could have sunk into developing, installing, and operating these technologies.” Natural gas provides an excellent case study of this effect. Technological advances, including horizontal drilling and hydraulic fracturing, have opened up vast new supplies of affordable natural gas. As a result, the cost dynamics of natural gas projects have changed as well — leading to greater use of natural gas powered buses to improve air quality in cities, conversion away from old, outdated, inefficient coal power generation towards cleaner natural gas plants, and a better economic profile for renewable energy projects that rely on natural gas as a back-up power source. Not only has investment in shale gas risen to record levels , but the natural gas industry now employs more of our citizens than ever before. That’s especially good news at a time when the national unemployment rate holds at a staggering 16.7% for African Americans. In addition to making natural gas a more cost effective, more job creating industry, proactive leadership by state regulators and advances in production technologies have also made natural gas development through hydraulic fracturing an even more environmentally friendly. Natural gas companies now drill multiple wells at single location to reduce the footprint of development, while new regulations have drastically improved water recycling efforts to minimize waste. Smarter regulation of the industry’s operation and better technology has won over a number of environmental advocates as well. Frank Matzner of the Natural Resources Defense Council said of natural gas in 2010, “we need to look at ways in which we can reduce our carbon footprint now and it’s appealing that it has a smaller footprint” than traditional methods of oil and gas extraction. Others, like Carl Pope of the Sierra Club, view natural gas development as an environmentally friendly alternative to traditional methods: “Natural gas is an excellent example of a fuel that can be produced in quite a clean way, and shouldn’t be wasted.” While the record speaks for itself, it’s important that we continue to support environmental improvement while also trumpeting the benefits of natural gas development. The balance between these forces has been the driver of U.S. progress in the past and can ensure continued advancement toward a healthier, more environmentally and economically sustainable future. As our national demand increases over the next several decades, technological advances coupled with proficient, competent regulation is important to our energy security and a prosperous future.

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Unions Start Passing Out The Picket Signs

September 18, 2011

LOS ANGELES — A union representing workers at three major grocery chains in Southern California distributed picket signs Sunday, as the clock ticked toward the end of a three-day notice period required before calling a strike. Union negotiators intend to keep talking if a resolution appears to be in sight when the period ends at 7:10 p.m. They also stressed that members could keep working beyond that time. “Our workers will stay on the job until at least midnight, and possibly longer if negotiations are moving ahead,” said Mike Shimpock, spokesman for United Food and Commercial Workers Local 770, one of the unions representing the 62,000 workers seeking a new contract. If little progress is made toward settling disagreements over health benefits, negotiators said they will tell members to walk off the job. The grocery workers have been working without a contract since March, while in discussions with negotiators for The Vons Cos. Inc.; Ralphs Grocery Co., a subsidiary of The Kroger Co.; and Albertsons, owned by Supervalu Inc. Representatives for the supermarket chains said last week they were disappointed that the unions had taken that step but remained committed to reaching an agreement. Kendra Doyel, a spokeswoman for Ralphs, said Sunday the supermarkets remained hopeful a deal would be reached before the deadline. Calls to representatives for Albertsons and Vons were not immediately returned. A four-month strike and lockout that began in 2003 cost Ralphs and other grocery chains an estimated $2 billion. Both sides in the current dispute announced in July that they had reached a tentative agreement on the employers’ contributions to pension benefits, but payments to the union health care trust fund remained a major sticking point. Union members voted overwhelmingly to reject the health care proposal offered by the chains and to authorize their leaders to call a strike. Union officials said they were responding to what they characterized as the chains’ delaying tactics when they issued the required 72-hour notice Thursday evening to cancel the contract extension under which they had been working.

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Andrea Ragnetti: Asia: Economic Impact of Culture?

September 18, 2011

In business circles, one of the most popular topics of conversation is Asia and its booming economies. Much of this talk still focuses on the traditional areas of low cost manufacturing and a growing middle class. Many Westerners still view Asia as a market, albeit a growing one, and from the viewpoint of exports, goods and/or production. In the meantime, Asia is moving west. Investments are far reaching — in New York City alone, Chinese investments in real estate surpass $1 billion , including leases at 1 World Trade Center and the Empire State Building. Less obvious but equally impactful, however is the subtle “cultural colonization” transpiring on the global stage. It is a process that reminds me of the dual track followed by the American influence on Europe after the Second World War. In those years, the US started to massively export their products to a recovering Europe. This push backed by their enormous internal consumption, the innovativeness of their business approach, and the financial support that they were giving to the ailing European economies. At the same time, Americans were also exporting culture. American music, cinema, way of living — they all became an inspiration and an aspiration for our societies. In a sense, the US was also “colonizing” us in a more intangible way. While that has never been completely accepted by Europe, and the “American way” has always been also criticized and at times ridiculed, it is true that America was establishing not only a financial influence on Europe, but also a cultural one, and one reinforced the other. Now look at Asia and China in particular. We are increasingly interested in a holistic approach to health, one based on concepts like energy flows and balance and as a result, we are consuming great amounts of homeopathic remedies, acupuncture, reflexology, massage chairs, and the like. Indeed, even the UK National Health Service (NHS) has been offering acupuncture for the past several years. In the 90s, the West embraced Feng Shui and today, home buyers and designers are seeking enhanced wellbeing, health and wealth by embracing ‘Vastu,’ an ancient practice based on the energies of the earth, water, air, fire and space. It’s not just for Asian homeowners; Vastu Shastra is being applied to corporate buildings, including the first Microsoft building in Kirkland, WA. The list continues — there are more and more Asian influences in our gastronomy. Increasingly, we look at the quality of Asian “services” as an example to pursue for our service industry (think Asian airlines, or Asian hotel chains). And so on. In some cases, the quest for Asian investment goes hand in hand with promotion of culture. Case in point, Liverpool. Today, facing high unemployment, a diminished manufacturing sector and twice the national average of people on benefits, the city is casting its view overseas for investment, with China top of the list. As noted in a recent Economist article , the city’s investment arm, Liverpool Vision has established an office in Shanghai and developers are looking for Chinese investment to rejuvenate Liverpool’s dockyards with plans including a 60-story ‘Shanghai tower.’ And what will visitors come across when they tour the new Museum of Liverpool? The East meets West exhibit documenting the city’s twinning with Shanghai; and an online area to explore Asia trade and artifacts. Equally, entrepreneurs across Asia are enjoying the economic advantages of exporting their culture. Indeed, the Shaolin Temple is one of the most powerful Chinese brands today and the temple has ‘exported’ its cultural activities via its kung fu performance troupes, establishing Shaolin kung fu and meditation centers across US and Europe and licensing of its name for film, cartoons and other productions. Over the past few years, I have also witnessed a lot of multinational companies, like General Electric, Philips, Siemens and many others, relocating their product development organizations to Asia, and populating them with local talents. General Electric talks openly of “reverse innovation,” sourcing concepts and ideas from Asia for the global market. This will allow the cultural influence to translate into products that will be “invented” in Asia and will become a hit in the West, thus reinforcing the impact of that region on the world economy. Isn’t all this somehow similar to what I described for the US? And if that is true, shouldn’t we look at Asia with different eyes, as a source of trends and inspiration, rather than as a “market” for our economies? But also, shouldn’t we also recognize that culture too has a powerful economic value? I think it is an interesting question to ask ourselves, particularly at a time when cultural initiatives are under increasing pressure of big budget cuts, the ones we believe are necessary to secure our economies.

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Obama to Meet World Leaders at UN

September 18, 2011

(MENAFN – Qatar News Agency) US President Barack Obama is scheduled to meet with several world leaders on the sidelines of the UN General Assembly meetings to discuss a number of key issues, …

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Erdogan to Meet with Obama in New York

September 18, 2011

(MENAFN – Qatar News Agency) Turkey’s Prime Minister will hold “a long” meeting with US President Barack Obama, on the margin of the UN”s General Assembly meeting in New York, Turkish Deputy Prime …

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Obama to propose new tax rate for rich taxpayers

September 18, 2011

(MENAFN) A White House official said that in order to be sure that rich people would pay the same percentage of taxes as the middle income taxpayers, President Barack Obama would be forecasted to …

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Europe hits back after US debt jibe

September 18, 2011

(MENAFN – Gulf Times) The European Central Bank defended the eurozone’s handling of its public finances yesterday, saying the bloc was better off than global rivals, after the US lectured Europe on …

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China state paper urges guarantees for bailout

September 18, 2011

(MENAFN – Gulf Times) China should demand the debt-stricken eurozone area guarantee investments, an editorial in the country’s top official paper said yesterday, arguing that Beijing must not enter …

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Obama urges Congress to pass "American Jobs Act"

September 18, 2011

(MENAFN – Kuwait News Agency (KUNA)) U.S. President Barack Obama urged here Saturday Congress to pass the American Jobs Act “without delay” so that businesses will be able to hire more workers and …

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Italy- Berlusconi ‘in hands of pimps and prostitutes’

September 18, 2011

(MENAFN – Arab News) Opponents of Italian Premier Silvio Berlusconi Saturday called for him to quit over phone transcripts in which he boasts of his popularity with women, as his camp hit out at the …

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Historian unearths human story of Britain’s spies

September 18, 2011

(MENAFN – The Peninsula) riting authoritatively about a spy service is hard for an outsider but Britain’s is a particularly tough case. Fact must be sifted from a big body of popular fiction, …

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Brazil increases taxes on imported vehicles

September 18, 2011

(MENAFN) Brazil’s Finance Minister, Guido Mantega, said that in order to protect the country’s domestic industry, the government would increase taxes on imported vehicles, reported Associated …

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Prescription drugs poisonings up in kids

September 18, 2011

(MENAFN – Khaleej Times) More and more kids are showing up in the emergency room after accidental poisoning from prescription drugs, according to new research. The findings show that powerful …

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The euro crisis

September 18, 2011

(MENAFN – Khaleej Times) The dream and concept of unanimity in Europe is mired in shadows. The news that economic growth in the Eurozone will soon come to a virtual standstill is quite …

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Careers and cleverness

September 18, 2011

(MENAFN – Khaleej Times) Husband comes home seething with righteous anger, tells wife he took on the boss, told him where he got off, enough’s enough, my self-esteem is more important than the …

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Italy- Finmeccanica has won energy orders of EUR one billion

September 18, 2011

(MENAFN – Emirates News Agency (WAM)) The Italian Finmeccanica, one of the leading international technology groups operating through its companies Ansaldo Breda, has won orders for a total worth in …

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USD2b fraud case at UBS

September 18, 2011

(MENAFN) UBS’s spokesperson said that the bank lost 2 billion in a fraud case and London Police detained a man who is expected to have a relationship with the case, reported Arabian business. …

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China’s 2010 cultural industry output up to USD173.98b

September 18, 2011

(MENAFN) China’s National Bureau of Statistics (NBS) said that last year, the country’s cultural industry’s output grew to USD173.98 billion, accounting for 2.75 percent of gross domestic product …

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1st Danish woman PM ‘Gucci Helle’ faces challenge

September 18, 2011

(MENAFN – Jordan Times) The left-leaning leader who is slated to become Denmark’s first female prime minister was once derided within her own ranks as “Gucci Helle” because of her taste for designer …

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UK- Unforgettable George Harrison

September 18, 2011

(MENAFN – Jordan Times) What is it that makes an album released nine years ago particularly attractive today, creating some kind of a renaissance, an unprecedented revival? It is simply the timeless …

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Opinion- Justified?

September 18, 2011

(MENAFN – Jordan Times) It is no coincidence that Russia has been behind the curve on Libya and Syria, and before that on Tunisia, Egypt and Yemen. Russia is traditionally conservative in its …

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Horn of Africa’s last famine?

September 18, 2011

(MENAFN – Jordan Times) The recent pledge of $350 million by African leaders and the international community to help the more than 13 million people facing starvation in the Horn of Africa …

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