Tuesday, February 17, 2009

Paternity test for boy, 13, who says he's a dad

LONDON - A DNA test will be performed to determine if a 13-year-old boy fathered a baby with his 15-year-old girlfriend, his spokesman said Monday.

The test comes after a Sunday tabloid newspaper reported that two other teenage boys have come forward claiming to be the father of the newborn baby girl.

Spokesman Max Clifford said the parents of Alfie Patten, 13, said the tests would be done "as soon as possible" to determine paternity.

"He obviously believes he's the father," Clifford said. "I think that having read the News of the World yesterday, it would be prudent to have a DNA test."

The teenager's 15-year-old girlfriend, Chantelle, gave birth to the baby girl earlier this month in Eastbourne, 70 miles southeast of London. The couple made headlines in Britain when Alfie, who looks much younger than 13, posed on the front page of the tabloid Sun newspaper with the baby.

The local council where the teenagers live said it would offer them support and that they will continue to be monitored by social workers to determine what help they might need.

Patten allegedly was 12 when he fathered the child, and his girlfriend was 14.

Calif budget - fiscal calamity

SACRAMENTO, Calif. – After a frustrating holiday weekend that failed to yield the one vote needed to end California's budget stalemate, the state is poised to begin layoff proceedings Tuesday for 20,000 government workers.

In addition to the layoffs, the state also plans to halt all remaining public works projects, potentially putting thousands of construction workers out of jobs.

"We are dealing with a catastrophe of unbelievable proportions," said state Sen. Alan Lowenthal, a Democrat from Long Beach and chairman of the Senate transportation committee.

Senate leader Darrell Steinberg announced late Monday that lawmakers had failed to find the final vote in his chamber as Republicans refused to support tax increases. He called a session for Tuesday and said he would put the tax provisions of the budget proposal up for a vote, even if they would not pass.

Steinberg warned lawmakers to bring their toothbrushes, saying they would not leave until that vote was secured.

"One member," Steinberg said. "One more member to put the interest of the state ahead of ideology and ahead of any parochial concern."

Like other states, California faces plunging tax revenue that has imperiled state services. The proposal put before lawmakers this weekend was negotiated by Schwarzenegger and the four legislative leaders and appeared to have support of the required two-thirds majority in the state Assembly.

However, it was falling one Republican vote short in the Senate, a situation that had not changed throughout a weekend marked by long hours and uncertainty over the state's future.

The plan includes $15.1 billion in program cuts, $14.4 billion in temporary tax increases and $11.4 billion in borrowing. The package also would send five ballot measures to voters in a special election to be held May 19.

The stalled effort prompted Schwarzenegger to make good on an earlier promise to begin the layoff process for thousands of state workers.

The governor had delayed releasing the notices on Friday when it appeared lawmakers would pass a compromise plan to close the state's $42 billion shortfall. But with marathon weekend sessions failing to produce the necessary votes, Schwarzenegger's spokesman said the administration had no choice.

"In the absence of a budget, the governor must do everything he can to cut back on state spending," spokesman Aaron McLear said.

The notices will start going out Tuesday to 20,000 workers in corrections, health and human services and other agencies that receive money from the general fund. Administration officials are seeking to eliminate up to 10,000 jobs as part of the governor's order to cut 10 percent from the government payroll.

Despite the warnings of impending fiscal calamity, most rank-and-file Republicans have refused to agree to higher taxes. Republican lawmakers blamed Democrats for years of overspending.

"You're not going to go back to the people's pocketbooks to fuel that spending," said state Sen. Dennis Hollingsworth, R-Temecula.

During a lively floor session Monday night, state Sen. George Runner, R-Lancaster, defended his colleagues' stance against tax hikes and said his constituents were pleading with him to vote no on the budget proposal.

He accused Democrats, who hold majorities in both houses, of using the recession to drive an agenda of tax increases.

"You want this emergency," Runner said, drawing jeers from Democrats in the chamber. "Listen, you may not like to hear what we have to say, but it's what we believe."

Steinberg, the Senate president pro tem, acknowledged that tax increases were difficult for all lawmakers to swallow but said the Legislature had no choice.

"Nobody likes that idea, but remember the reason we are in this crisis is because we are in a national and international crisis," he said.

Lawmakers broke the record for longest legislative session in state history over the weekend before disbanding Sunday night. The Assembly was at one point in session for 30 hours.

Death in australia wildfire reaches 200

MELBOURNE, Australia – The confirmed death toll from Australia's deadly wildfires reached the grim milestone of 200 Tuesday, and a police official said some bodies reduced to ash in the inferno would never be identified.

Investigators confirmed 11 additional people had died in one of more than 400 fires that raged across southern Victoria state on Feb. 7, destroying more than 1,800 homes and scorching more than 1,500 square miles (3,900 square kilometers) of farms, forests and towns.

In a statement, Victoria police said the newest confirmed deaths occurred in a fire that razed the town of Kinglake and surrounding areas. Police spokesman Marty Beveridge said the death count would go higher as more remains are identified.

The sobering news came as a firefighter was killed Tuesday evening when a tree branch fell on his car during a recovery effort in the devastated village of Marysville, police said. The man died at the scene, Victoria Police spokeswoman Karla Dennis said in a statement.

Meanwhile, a senior police commander said some of the victims of the deadly blazes will likely never be identified because the fires were so intense their bodies were cremated.

Ten days after the disaster, police say they have not been able to give a definitive death toll because of the difficulty in finding and identifying remains.

In some cases, all that is left of the victims is ash, police Deputy Commissioner Kieran Walshe told The Associated Press.

"Fire does terrible damage to bodies and the identification process is going to be a lengthy process and it's going to require scientific examination," Walshe said. "In some cases it will be within a few weeks ... in other cases it may well be we're unable to be definitive about the identity."

Where there is only ash, victim identification crews rely on other clues like jewelry found in the ruins to help attach names to the remains, Walshe said.

He declined to say how many bodies may still be in the disaster zone. He said police believed they had cleared all bodies from burned open areas, and were now sifting through ruined homes.

Police suspect at least two of the fires were deliberately set, and have charged one man with arson causing death and lighting a wildfire. Brendan Sokaluk, 39, faces a maximum sentence of 25 years on the first charge and 15 years on the second. He is being held in protective custody to prevent revenge attacks against him.

On Monday, thousands of people on the social networking site Facebook joined vigilante groups that called for Sokaluk's death. By Tuesday, they had been taken down, though new ones popped up in their place.

Sokaluk's MySpace profile, in which he painted himself as a lonely, love-starved bachelor, was also deleted Tuesday. On his profile, he wrote in disparaging terms of a woman named "Alexandra."

On Tuesday, Alexandra's mother released a statement to the media through the Victoria police saying her family has been harassed since the link between Alexandra and Sokaluk became public. The woman, who police refused to identify, said her daughter had a three-month relationship with Sokaluk that ended a year ago.

Alexandra, shown on her MySpace profile wearing a Country Fire Authority uniform, is not a member of the organization but has helped raise money for it, her mother said.

The police declined to reveal Alexandra's last name or any other details.

MySpace's Australian director of Safety, David Batch, said the Web site was working with police and had suspended Sokaluk's profile pending the outcome of the investigation.

Meanwhile, a class-action lawsuit was filed against electricity supplier SP AusNet alleging that defective power lines caused losses and damage in connection with one of the fires.

SP AusNet, which is 51 percent-owned by Singapore Power Group, which runs a 6.3 billion Australian dollar ($4 billion) gas and power network in southeast Australia that is one of the country's largest, vowed to fight the claim.

A government inquiry into the fire should be concluded first, the company contends.

"SP AusNet believes the claim is both premature and inappropriate," the company said Tuesday in a statement to the Australian Securities Exchange. "However, SP AusNet will vigorously defend the claim."

The inquiry, intended to investigate the fire, its causes, the preparedness of residents and emergency services responses, will deliver an initial report on Aug. 17.

Lincoln - best president

WASHINGTON – Just days after the nation honored the 200th anniversary of his birth, 65 historians ranked Abraham Lincoln as the nation's best president.

Former President George W. Bush, who left office last month, was ranked 36th out of the 42 men who had been chief executive by the end of 2008, according to a survey conducted by the cable channel C-SPAN.

Bush scored lowest in international relations, where he was ranked 41st, and in economic management, where he was ranked 40th. His highest ranking, 24th, was in the category of pursuing equal justice for all. He was ranked 25th in crisis leadership and vision and agenda setting.

In contrast, Lincoln was ranked in the top three in each of the 10 categories evaluated by participants.

In C-SPAN's only other ranking of presidents, in 2000, former President Bill Clinton jumped six spots from No. 21 to 15. Other recent presidents moved positions as well: Ronald Reagan advanced from No. 11 to 10, George H.W. Bush rose from No. 20 to 18 and Jimmy Carter fell from No. 22 to 25.

This movement illustrates that presidential reputations are influenced by present-day concerns, said survey adviser and participant Edna Medford.

"Today's concerns shape our views of the past, be it in the area of foreign policy, managing the economy or human rights," Medford said in a statement.

After Lincoln, the academics rated George Washington, Franklin D. Roosevelt, Theodore Roosevelt and Harry Truman as the best leaders overall. The same five received top spots in the 2000 survey, although Washington and Franklin D. Roosevelt swapped spots this year.

Rated worst overall were James Buchanan, Andrew Johnson, Franklin Pierce, William Henry Harrison and Warren G. Harding.

The survey was conducted in December and January. Participants ranked each president on a scale of one, "not effective" to 10, "very effective," on a list of 10 leadership qualities including relations with Congress, public persuasion and moral authority.

Thursday, February 12, 2009

Out of work and challenged on benefits, too

In record numbers, employers move to block unemployment payouts

It's hard enough to lose a job. But for a growing proportion of U.S. workers, the troubles really set in when they apply for unemployment benefits.

More than a quarter of people applying for such claims have their rights to the benefit challenged as employers increasingly act to block payouts to former workers.

The proportion of claims disputed by former employers and state agencies has reached record levels in recent years, according to the Labor Department numbers tallied by the Urban Institute.

Under state and federal laws, employees who are fired for misbehavior or quit voluntarily are ineligible for unemployment compensation. When jobless claims are blocked, employers save money because their unemployment insurance rates are based on the amount of the benefits their workers collect.

As unemployment rolls swell in the recession, many workers seem surprised to find their benefits challenged, their former bosses providing testimony against them. On one recent morning in what amounts to one of Maryland's unemployment courts, employees and employers squared off at conference tables to rehash reports of bad customer service, anger management and absenteeism.

"I couldn't believe it," said Kenneth M. Brown, who lost his job as a hotel electrician in October.

He began collecting benefits of $380 a week but then discovered that his former employer, the owners of the Gaylord National Resort and Convention Center, were appealing to block his unemployment benefits. The hotel alleged that he had been fired for being deceptive with a supervisor.

"A big corporation like that. . . . It was hard enough to be terminated," he said. "But for them to try to take away the unemployment benefits -- I just thought that was heartless."

After a Post reporter turned up at the hearing, the hotel's representative withdrew the appeal and declined to comment. A hotel spokesperson later said the company does not comment on legal matters. Brown will continue to collect benefits, which he, his wife and three young children rely on to make monthly mortgage payments on their Upper Marlboro home.

Unemployment compensation programs are administered by the states and funded by payroll taxes that employers pay. In 2007, employers put up about $31.5 billion in such taxes, and those taxes typically rise during and after recessions, as states seek to replenish the funds.

With each successful claim raising a company's costs, many firms resist letting employees collect the benefit if they consider it undeserved.

"In some of these cases, employers feel like there's some matter of principle involved," said Coleman Walsh, chief administrative law judge in Virginia, who has handled many such disputes. But, he said, "nowadays it appears their motivation has more to do with the impact on their unemployment insurance tax rate. Employers by and large are more aware of unemployment as a cost of business."


Unknown powder found in federal offices in Texas

EL PASO, Texas – The FBI headquarters in El Paso was evacuated Wednesday after two people in the mail room were exposed to a white powdery substance in a letter that was addressed to Mitt Romney, the former Massachusetts governor and Republican presidential candidate.

Andrea Simmons, an FBI spokeswoman, said a field test showed the material found Wednesday wasn't hazardous but more extensive tests are pending.

The employees who came in contact with the powder were treated at the scene by emergency medical personnel. Everyone else in the federal law enforcement building, which houses about 200 FBI employees and nearly 100 U.S. Drug Enforcement Agency personnel, was sent home while hazardous materials crews worked to identify the substance.

Simmons said the powder was in a piece of mail addressed to Romney with a return address of the FBI office in El Paso. She said that it appeared that the letter was sent to the FBI address after being returned as undeliverable.

Simmons said the letter may be connected to other cases involving white powder substances.

In December, governor's offices in more than 40 states, including Texas, received mailings with a suspicious white powder that authorities said was deemed harmless.

Police: Car bomb kills 4 in northern Iraq

BAGHDAD – A parked car bomb killed four policemen and wounded three people in the northern Iraqi city of Mosul on Thursday, the latest in a string of recent attacks in a city U.S. officials describe as al-Qaida's last major urban stronghold in the country.

The car bomb targeted a police patrol in eastern Mosul and the wounded included one policeman and two civilians, said a police official, speaking on condition of anonymity because he was not authorized to talk to the media.

Political officials have also been targeted in Mosul. Three unidentified gunmen killed a local Sunni official in the city on Thursday, said a second police official, also speaking on condition of anonymity for the same reason. Abdul-Kareem Khalaf al-Sharabi, deputy chief of the National Dialogue Front in Mosul, was gunned down near his house in western Mosul, he said.

Violence in Iraq is at a five year low, thanks to the surge in U.S. troops in 2007 and more aggressive efforts by the Iraqi government to crack down on Sunni and Shiite militants. But many Sunni extremists are believed to have fled north after being driven from Baghdad and central Iraq, exacerbating violence in Mosul.

Five Iraqi security personnel and a senior member of the Sunni Islamic Party were killed in a series of attacks in Mosul on Wednesday. On Monday, a suicide car bombing killed four U.S. soldiers at a checkpoint in the city.

Periodic attacks have continued in other areas of Iraq as well. Two bombs hidden in garbage cans in the central Iraqi city of Baqouba exploded almost simultaneously Thursday, wounding three people, said a police official. A third bomb was defused in the same area, he said, speaking on condition of anonymity because he was not authorized to talk to the media.

Also Thursday, a top Iraqi official confirmed that Iraq is holding four former detainees from the Guantanamo detention facility to see whether they pose a threat.

Acting Justice Minister Safaaulddin al-Safi told The Associated Press that a judge has approved their continued detention for two weeks while authorities interrogate and investigate them.

The four were arrested in Afghanistan and held at Guantanamo before being handed over to the Iraqis last month.

Al-Safi said the four were not wanted for crimes in Iraq but authorities want to make sure they pose no threat if set free.

President Barack Obama has ordered the detention center in Cuba to be closed within a year as part of his overhaul of U.S. national security policy.

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Sirius XM on the ropes, EchoStar ready to pounce

The satellite radio company could file for bankruptcy within days, according to the New York Times. Waiting in the wings? EchoStar, which has already taken on much of Sirius XM's mounting debt. So, is satellite radio about to go silent?Well … not quite yet. I doubt that the service would go dark overnight were Sirius XM to file for bankruptcy protection, but as the Times points out, the company might have to cut some of its pricier shows—I'm looking at you, Howard Stern—during a restructuring.

Another scenario: A takeover by EchoStar, the satellite TV company that's circling Sirius XM like a vulture.

So, how did Sirius XM get into this mess? Chalk it up to a mountain of debt: $3.25 billion, give or take, about $175 million of which the cash-strapped company owes this month.

As Bloomberg reports, Sirius XM turned down a takeover bid from EchoStar back in December; since then, EchoStar has been buying up chunks of Sirius XM's debt.

Neither Sirius XM nor EchoStar are talking, but sources tell the New York Times that the two respective CEOs—who are "said not to get along"—are "locked" in negotiations. (That must be a fun meeting.)

Negotiations over … what? Well, the Wall Street Journal (via Tech Trader Daily) reports that EchoStar is offering to bail out Sirius XM by restructuring its debt and pumping in some much-needed cash—in exchange for total control, of course. If that happens, say hello to "Sirius XM: An EchoStar service."

The alternative: Sirius XM files for bankruptcy, leaving EchoStar to pick over the remains in bankruptcy court.

Either way, I'm pretty sure we're looking at the end of Sirius XM as we know it. The best scenario for subscribers, I'm guessing, is a takeover by the well-funded EchoStar, which could probably keep the satellite radio service afloat without skipping a beat.

But bankruptcy … well, if that happens, prepare for Howard Stern to be replaced by Crazy Chuck, broadcasting live from his mobile home in West Sacramento.

Related:
Sirius XM Prepares for Possible Bankruptcy [The New York Times]

Wednesday, February 11, 2009

California could lay off 10,000 state workers

SAN FRANCISCO, (AFP) – California Governor Arnold Schwarzenegger threatened to fire as many as 10,000 state employees if legislators do not approve a deal later this week to help close the state's projected 42-billion-dollar budget deficit.

The governor's spokesman said layoff warnings would be sent to about 20,000 state workers this Friday if there is no deal.

About half of those workers would have their jobs eliminated by July 1. Employees with the least seniority in each state department would get the layoff notices. The 10,000 job cuts are projected to translate to annual savings of around 750 million dollars.

Most of the state's 238,000 workers already are being forced to take off two Fridays each month without pay.

"We don't have a budget and there's only a few things that the governor can do to save the state money," press secretary Aaron McLear said at a media briefing. "This is simply out of necessity. The state is running out of money."

The governor's warning came as he and legislative leaders struggled to win approval for a package of billions of dollars of spending cuts and tax increases to make up for the budget deficit projected over the next 18 months.

Saying the state is on the brink of running out of money, state Controller John Chiang already has delayed tax refunds and has warned that he soon will be forced to stop paying some state bills or providing funds for some state services.

Mugabe swears in rival as Zimbabwe prime minister

HARARE, Zimbabwe – Zimbabwean President Robert Mugabe swore in his longtime rival Morgan Tsvangirai as prime minister Wednesday, ushering in a unity government in an extraordinary concession after nearly three decades of virtually unchallenged rule.

There had been pressure for Mugabe, who remains president in the coalition, to step down altogether and questions remain about whether the partnership can work.

While Mugabe recently declared "Zimbabwe is mine," he went further Wednesday than many would have expected. He stood to face Tsvangirai as an equal in a white tent on the grounds of the presidential palace.

Regional leaders watched from the tent and Zimbabweans across the country watched on state TV as Tsvangirai raised his right hand and declared: "I will well and truly serve Zimbabwe in the office of prime minister of the Republic of Zimbabwe, so help me God."

Both Tsvangirai and Mugabe were relaxed and smiling during the brief ceremony, which also included the swearing-in of Tsvangirai's deputies, Arthur Mutambara of a breakaway opposition party and Thokozani Khupe of Tsvangirai's party.

Together, Tsvangirai and Mugabe will be under pressure to act quickly to alleviate the suffering of impoverished Zimbabweans. The country's economic collapse — for which Tsvangirai holds Mugabe responsible — has led to the world's highest inflation rate, left millions dependent on international food aid, and caused a cholera outbreak that has killed some 3,400 people since August.

Neighboring leaders who pushed for the coalition said that once they had joined in the unity government, the two men would overcome mutual mistrust and work together for the good of their country.

The two men have clashed repeatedly since the decade-old opposition Movement for Democratic Change emerged as the most serious threat to the ruling regime since independence.

Tsvangirai has been beaten and jailed by Mugabe's security forces. In 2007, police attacked him after he held an opposition meeting the government had banned. Images shown on news broadcasts around the world of his bruised and bloodied face came to symbolize the challenges his movement faced.

Mugabe, who turns 85 on Feb. 21 and has been in power since independence from Britain in 1980, had in the recent past treated the 56-year-old Tsvangirai as a junior partner at best, often not bothering to hide his contempt.

But Tsvangirai won the most votes in the first round of presidential election held almost a year ago, and withdrew from a June runoff only because of attacks on his supporters.

Tsvangirai's party, the Movement for Democratic Change, also broke ZANU-PF's lock on parliament in March 2008 elections for the first time since independence.

The coalition agreement calls for the government to make its priority reviving an economy the opposition accuses Mugabe of destroying through corruption and mismanagement. The world's highest inflation rate has left millions of Zimbabweans dependent on international food aid to survive.

Even if the factions can put aside their differences, they cannot do much without foreign help. The world's main donor, the United States, has made clear the money won't flow if Mugabe tries to sideline Tsvangirai.

Tsvangirai announced Tuesday that one of his most senior aides, Tendai Biti, would head the Finance Ministry. Days earlier a judge had shut down a treason trial for Biti, who had faced a possible death sentence.

Tsvangirai's party also holds the Health Ministry, another key post given the country's cholera epidemic. The rapid and unusually deadly spread of the disease has been blamed on the collapse of Zimbabwe's health and sanitation infrastructures because of lack of funds for maintenance.

The unity government's agenda includes preparing for new elections, expected in a year or two. Media restrictions will have to be lifted and other steps taken to ensure the elections are free and fair, after several ballots marred by violence, intimidation and manipulation blamed on Mugabe's party.

Tsvangirai on Tuesday called for political detainees to be released before he is sworn in as prime minister, but did not say what he would do if they were not. Human rights groups say tortured detainees are on the verge of dying in jail.

Some Tsvangirai allies say he never should have agreed to serve as prime minister in a government that left Mugabe president. Mugabe, meanwhile, has been under pressure from aides in the military and government who don't want to give up power and prestige to the opposition.

Problems emerged almost as soon as the factions agreed to their partnership in September. Mugabe unilaterally claimed all the most powerful Cabinet posts for ZANU-PF, including the ministry in charge of the police accused of attacking dissidents.

Regional leaders then decreed the police ministry would be alternated between ZANU-PF and MDC politicians, only one of several compromises that raise questions about how the unity government can practically work.

At first, Tsvangirai said he would not join the government until a more equitable Cabinet allotment was worked out, and until attacks on his supporters stopped. Regional leaders met five times to pressure Mugabe and Tsvangirai to move forward. Tsvangirai gave in on Jan. 30, agreeing to join the government now and resolve outstanding issues later.

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Suicide bombers, gunmen kill 19 in Afghan capital

KABUL – Taliban fighters, carrying assault rifles and wearing suicide vests, stormed the Justice Ministry and another government building in Afghanistan's capital Wednesday, forcing workers to flee from windows, according to government officials and a Taliban spokesman.

Nineteen people were killed in the assault.

The coordinated attacks struck in the heart of Kabul, underscoring the reach of the Taliban beyond their strongholds in the south and east ahead of a planned visit by President Barack Obama's special envoy to the region.

Eight assailants also died in the attacks, said Defense Ministry spokesman Gen. Mohammad Zahir Azimi, bringing to 27 the total deaths.

Azimi said all eight attackers had suicide vests, but only three assailants set them off.

Five men armed with assault rifles and grenades attacked the Justice Ministry in late morning — and they appeared to control it for at least a short period.

But by midday, about two hours after the attacks began, Afghan security forces waved from windows in an apparent all-clear sign, according to an AP reporter on the scene. All five attackers were killed in a shootout with security forces.

Justice Minister Sarwar Danesh spoke to The Associated Press while he was briefly trapped inside the ministry with a number of government employees.

"They used grenades and AK-47s," Danesh said of the attackers, speaking by mobile phone.

A ministry worker said he scrambled out of a second-floor window to escape an advancing gunman.

"I came out of my office to see what was going on, and I saw a man with an AK-47 shooting at every employee he saw in the hall," said ministry employee Nazir Mohammad, shaking as he spoke.

Another two men blew themselves up at the ministry's correction department in northern Kabul, Azimi said.

Afghanistan's Health Minister, Mohammad Amin Fatimie, said at least 19 people were killed between the two attacks.

In a third incident near the Education Ministry, police shot dead another attacker, said police officer Zulmay Khan. No one else was reported to have been killed at that scene and it was unclear if he was targeting the Education Ministry, which is very close to the Justice Ministry.

Zabiullah Mujaheed, a spokesman for the Taliban, said the attacks were in response to the alleged mistreatment of Taliban prisoners in Afghan government jails.

"We have warned the Afghan government to stop torturing our prisoners," Mujaheed told the AP in a phone call from an undisclosed location. "Today we attacked Justice Ministry compounds."

The Taliban regularly use suicide bombings in their assaults on Afghan and foreign troops, but the heavily barricaded capital had been largely spared of major attacks recently.

___

Associated Press Writer Noor Khan contributed to this report from Kandahar, Afghanistan.

Asia stocks fall amid skepticism over US bank plan

HONG KONG – Asian stock markets dropped Wednesday, following a steep sell-off on Wall Street, as investors reacted with skepticism to the U.S. government's latest plan to rescue the ailing financial industry with as much as $2 trillion in funding.
Hong Kong's benchmark tumbled nearly 3 percent, while stock measures in South Korea and India fell about 1 percent or more. Further weighing on the region were figures showing China's exports plunged 17.5 percent in January — the sharpest drop in more than a decade — amid the global slowdown.
As in the U.S., investors across Asia questioned whether America's revamped bailout program, unveiled Tuesday by Treasury Secretary Timothy Geithner, would be enough to absorb the bad assets saddling bank balance sheets and free up the credit markets that govern lending to consumers and businesses.
Geithner said the plan to get trillions of dollars in financing flowing through the world's largest economy was urgently needed as part of the government's effort to stave off "catastrophic failure" of institutions. A centerpiece involves the government teaming with the private sector to buy up to $1 trillion in souring assets from financial firms. A separate lending program would be expanded to as much as $1 trillion from $200 billion for consumers and businesses.
Investors, however, complained about what they viewed as a lack of detail.
Garry Evans, a chief Asian equity strategist with HSBC in Hong Kong, called the plan "muddled." He said the government was skirting around what many investors have already concluded: that the U.S. may have to nationalize the banks for a period.
"People are not convinced that this plan is what it is needed," Evans said.
"They (U.S. officials) have still philosophically backed away from the ultimate conclusion, which is the government will have to take over financial institutions," he said. "Philosophically that's quite hard for the U.S. government to admit, but the history of banking crises shows that is what governments usually do."
Not even the colossal amounts of money announced in the U.S. are likely to make up the funding shortfall created by risky loans and other distressed assets the banks are holding, said Paul Schulte, a chief Asia equity strategist at Nomura International in Hong Kong.
The financial hole could be as big as $4 trillion, but U.S. officials have yet to fully explain the scope of the problem, he said.
"The problem is much larger than people thought and the solutions to this much larger problem are still not coherent," Schulte said. "The plan is absolutely a step in the right direction, but we have like 45 more steps to go."
In Hong Kong, the Hang Seng tumbled 388.60 points, or 2.8 percent, to 13491.48, while South Korea's Kospi lost 8.69, or 0.7 percent, to 1,190.18. Japanese markets were closed for a public holiday.
Elsewhere, Australia's benchmark fell 0.4 percent and India's index lost 1.7 percent.
In mainland China, Shanghai's main stock measure sank about 0.2 percent in a choppy session after news of last month's fall in exports, the third straight month of declines.
The collapse in global demand for Chinese textiles, toys and other goods are devastating export-dependent coastal areas. The figures added to the threat of more job losses and increase pressure on Beijing to boost slumping economic growth.
Asia's retreat was tame compared to Wall Street's. U.S. markets plunged overnight as investors soured on the financial rescue and seemed to ignore the Senate's approval of its $838 billion economic stimulus package.
The Dow industrials fell 381.99, or 4.62 percent, to 7,888.88. Broader stock indicators also tumbled, with the Standard & Poor's 500 index down 42.73, or 4.91 percent, to 827.16. It was the biggest drop for the index since the Obama inauguration on Jan. 20.
Wall Street futures were up modestly, suggesting U.S. markets could recover some at the open. Dow futures were up 21, or 0.3 percent, at 7,899 and S&P500 futures rose 1.5, or 0.2 percent, to 828.40.
Asian financials, like those in the U.S., took a bruising.
KB Financial Group Inc., the holding company for top South Korean lender Kookmin Bank, tumbled 3.8 percent. Leading Australian investment bank Macquarie Group Ltd. dropped 1.9 percent. And European heavyweight HSBC Holdings shed 4.8 percent in Hong Kong.
In oil, light sweet crude for March delivery rose 57 cents to $38.14 a barrel in Asian trade. The contract fell $2.01 to settle at $37.55 overnight.
In currencies, the dollar was at 90.04 yen compared to 90.43 yen, while euro traded at $1.2896, down from $1.3903.

Tuesday, February 10, 2009

Colonel's secret recipe in new, safer vault at KFC

LOUISVILLE, Ky. – Colonel Sanders' handwritten recipe for fried chicken was back in its Kentucky home Tuesday after five months in hiding while KFC upgraded security around its top corporate secret.
Nothing went afoul when the recipe was returned from an undisclosed location to KFC's headquarters late Monday in a lockbox handcuffed to the wrist of a security consultant.
KFC President Roger Eaton was visibly relieved when the door to a new electronic safe was shut with the single sheet of yellowing paper stashed inside. "Mission accomplished," he said.
"It was very nerve wracking," Eaton said later of the recipe's hiatus from a vault where it has been kept for decades. "I don't want to be the only president who's lost the recipe."
KFC is a subsidiary of Louisville-based Yum Brands Inc., which also owns Taco Bell, Pizza Hut, Long John Silver's and A&W All-American Food.
The recipe lays out a mix of 11 herbs and spices that coat the chain's Original Recipe chicken, including exact amounts for each ingredient. It is written in pencil and signed by Harland Sanders.
The iconic recipe is now protected by an array of high-tech security gadgets, including motion detectors and cameras that allow guards to monitor the vault around the clock.
"It's like an onion of security — many layers," said security expert Bo Dietl, who brought the recipe back to the building.
Thick concrete blocks encapsulate the vault, situated near office cubicles, that is connected to a backup generator to keep the security system operating in times of power outages.
"I can guarantee you, once it's in there, it will be safe," Dietl assured Eaton.
The recipe is such a tightly held secret that not even Eaton knows its full contents. Only two company executives at any time have access to the recipe. KFC won't release their names or titles, and it uses multiple suppliers who produce and blend the ingredients but know only a part of the entire contents.
"We've very comfortable with the security," Eaton said. "I don't think anyone can break into it."
Just how valuable is the recipe?
Thomas P. Hustad, professor of marketing at Indiana University's Kelley School of Business, said the recipe "goes to the core of the identity of the brand." The recipe, along with the man who created it, conjure images for the chain that help set it apart in the minds of customers, he said.
"I would say that the heritage value is just as high for this secret recipe as the stories around the Coke formula," Hustad said by phone Tuesday. "I guess I'd put the two of those at the top of the pyramid."
Dietl said the security measures he installed replaced an "antiquated" system. For years, the recipe was kept in a filing cabinet equipped with two combination locks in the vault.
"The colonel could have used a pry bar to open that thing up," Dietl said.
Sanders developed the formula in 1940 at his restaurant in southeastern Kentucky and used it to launch the KFC chain in the early 1950s. Sanders died in 1980, but his likeness is still central to KFC's marketing.
KFC had 15,580 locations worldwide at the end of 2008, including 5,253 in the U.S.
The chain is hoping to revive sluggish U.S. sales with the launch of a value menu and an April rollout of a new grilled chicken product aimed at health-conscious consumers.

10-year-old Sussex spaniel wins Westminster show

NEW YORK – This old dog taught Westminster a new trick. At 10, a Sussex spaniel called Stump became the oldest best in show winner at America's top canine competition, coming out of retirement last week and taking the big prize Tuesday night.
"He hasn't slowed down a bit," expert handler Scott Sommer said. "I thought it would be fun."
A nearly full crowd at Madison Square Garden cheered loudly when judge Sari Tietjen pointed to the new champion at the Westminster Kennel Club. Perhaps the fans knew Stump's backstory — he left the show ring in 2004 and later nearly died from a mysterious medical condition. The vets at Texas A&M saved him.
"It was miraculous," Sommer said.
Then again, maybe folks just liked rooting for the old guy. In human years, he's almost 70!
Sommer said Sussex spaniels can live to be 15. Never before had a dog from this breed won the show. The previous oldest winner was an 8-year-old Papillon in 1999.
With floppy ears and a slow gait, the golden-red Stump beat out a sparkling final field. Sommer guided him past a giant schnauzer that was the nation's top show dog, a favored Brussels griffon, a Scottish deerhound named Tiger Woods, a standard poodle with 94 best in show wins, a Scottish terrier and a puli.
After he won, Stump showed off his one trick: He got up on his hinds, as if he was begging. He didn't have to, he was already No. 1.
Nearly 2,500 dogs were entered at Westminster. Last year's champion, a beagle named Uno, was perhaps the most popular winner ever.
But with a bounce in his step, Stump is sure to win over plenty of people while he reigns for a year and gets extra playtime with his green Grinch toy.
"He really is retired this time," Sommer said.
Stump won the sporting group at Westminster in 2004, then went into retirement. Soon after, he nearly wasted away and spent 19 days in a pet hospital.
"It was very traumatic," Sommer said.
Once he recovered, Stump mostly spent his days hanging out with Sommer, living a dog's life. That was more than fine with Sommer. He'd handled a great Bichon Frise called J.R. to the best in show at Westminster in 2001, and wasn't looking for Stump to try again.
Besides, Stump had two sons to take care of, named Root and Forest.
Then five days before this show, Sommer thought Stump might enjoy one last walk on the green carpet at the Garden. And what a walk it was — his 51st best in show victory overall.
Stump began by winning the best of breed, then took best in group.
"Can you believe that?" said New York Yankees president Randy Levine, a regular at this event.
There was more in store, too. Stump lives with J.R. at Sommer's home in Houston, and may've gotten some advice.
"J.R. must've told him this morning, 'Keep up the family name,'" Sommer said.
This was the 133rd edition of Westminster and the dogs came in 170 breeds and varieties. Among them was Domino.
Asleep in his crate, Domino looked like the most peaceful, innocent pooch on the planet.
Ha! Just wait, handler Paul Clas cackled.
These Portuguese water dogs can cause all sorts of mischief, he said. And if President Barack Obama really does decide to make one the First Dog, look out.
"They'll bring comedy to the White House. Interesting things would happen," Clas said earlier Tuesday. "I think it would be hilarious."
Pacifying this active breed — among the two the Obamas are considering — isn't always easy, even with a big yard and a big staff. It sometimes takes an extra treat.
"Obama may not take bribes, but his Portuguese water dog would," Clas said.
Clas wouldn't mind having one as a neighbor — he lives in Thurmont, Md., near the presidential retreat of Camp David.
Obama said his family had narrowed the choices to a "Porti" or a Labradoodle, a designer mix of a Labrador retriever and a poodle.
The president has said he is ready to begin visiting shelters with wife Michelle and daughters Sasha and Malia. A main consideration is a dog that is hypoallergenic.
"I like to see them pick the Portuguese water dog. They're a proven breed for many years," Clas said.
Portis are medium sized, weighing 50 or 60 pounds. They can be black, brown, white or a mix, with either a wavy or curly coat of hair, not fur. Sen. Edward Kennedy, D-Mass., owns them.
Westminster spokesman David Frei, in his 20th year as television host for the show, said the Obamas are doing a good job in taking their time.
"It's an important decision. Whichever dog he picks will probably be with him longer than anyone in his Cabinet," Frei said.

Octuplet's mom on food stamps, publicist says

Octuplet's mom on food stamps, publicist says:

Three of Nadya Suleman's older kids also get federal support for disabilities


Nadya Suleman, the mother of the octuplets born last month, gets $490 a month in food stamps, the Los Angeles Times reported Monday evening. Three of her first children also get federal supplemental security income because they are disabled, the Times reported.

Suleman's publicist, Michael Furtney, confirmed the information.

During an interview with Ann Curry on the TODAY show, Suleman denied being on welfare. (Msnbc.com is a joint venture of NBC Universal and Microsoft.)

Suleman told NBC News correspondent Ann Curry in an interview that she was not receiving welfare. Furtney said Suleman didn't consider the food stamps and SSI to be welfare. "In Nadya's view, the money that she gets from the food stamp program ... and the resources disabilities payments she gets for her three children are not welfare," he said. "They are part of programs designed to help people with need, and she does not see that as welfare."

Furtney declined to say what kinds of disabilities the three children have, the Times reported.

During the interview with Curry, Suleman said, "I'm not receiving help from the government. I'm not trying to expect anything from anybody. [I] just wanted to do it on my own. Any resources that someone would really, really want to help us, I will accept, I would embrace.”

Curry told Suleman that many people think she had the octuplets in the hope of making money off her story.

“That's funny how untrue that is,” Suleman said. “Money? Money is necessary to raise children. But it's — it's paper. It is paper. To me, it is superfluous in contrast to the importance of my kids.”

NBC chief medical editor Dr. Nancy Snyderman has estimated the cost of delivering the infants and caring for them until they are healthy enough to leave the hospital at $1.5 million to $3 million.

Tanker catches fire off Dubai port after accident

DUBAI, United Arab Emirates – A container ship collided with a tanker Tuesday and set it on fire in a shipping channel off the coast of Dubai, the city's port operator said.

No fatalities were reported. The tanker's crew was evacuated safely after two sailors were pulled from the water with light injuries, DP World spokeswoman Sarah Lockie said.

Details about damage to the tanker were not immediately available. Lockie said the ship was carrying a liquid used to make plastic.

Mohammed Farouk, an officer in the Dubai police department's emergency response team, said the fire broke out at 12:20 p.m.

Dubai police helicopters and boats were sent to help with the rescue effort but have now returned to base, he said. Rescuers from the Emirates coast guard and an emergency response division of DP World's parent company were also dispatched, Lockie said.

Officials said the fire has been extinguished.

Tug boats were able to pull the container ship and its crew to safety shortly after the accident occurred. By mid-afternoon, the damaged tanker had been cleared from the accident site, Lockie said.

The accident happened when the inbound tanker collided with a medium-sized container "feeder vessel" heading out to sea in a shipping channel five miles from Jebel Ali Port, she said.

Stephen Olley, assistant manager of the casualty section of Lloyd's Marine Intelligence Unit in the U.K., said the tanker was named Kashmir and was carrying about 30,000 tons of oil condensate. The Maltese-flagged vessel was heading to the UAE from Iran.

"We do understand there's been quite a serious collision and a fire," he said.

Olley said he believed the container ship is the Sima Saman, which was flying a Singapore flag. He did not know its destination or origin.

Container ships typically carry a variety of cargo packed into 20-foot or 40-foot containers.

Jebel Ali Port is on the southwestern end of the city, in the direction of Abu Dhabi. It is the bigger of two major ports in Dubai.

DP World is the world's fourth-biggest port operator. It is 80 percent owned by the government of Dubai.

Lockie said the incident is "all over now" and that traffic is moving in and out of the channel.

___

Associated Press Writers Barbara Surk in Dubai and Jason Keyser in Cairo contributed reporting.

Monday, February 9, 2009

15 Companies That Might Not Survive 2009

Who's next?

With consumers shutting their wallets and corporate revenues plunging, the business landscape may start to resemble a graveyard in 2009. Household names like Circuit City and Linens 'n Things have already perished. And chances are, those bankruptcies were just an early warning sign of a much broader epidemic.

Moody's Investors Service, for instance, predicts that the default rate on corporate bonds - which foretells bankruptcies - will be three times higher in 2009 than in 2008, and 15 times higher than in 2007. That could equate to 25 significant bankruptcies per month.

We examined ratings from Moody's and data from other sources to develop a short list of potential victims that ought to be familiar to most consumers. Many of these firms are in industries directly hit by the slowdown in consumer spending, such as retail, automotive, housing and entertainment.

But there are other common threads. Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it's a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It's a terrible time to be cash-poor.

[See how Wall Street continues to doom itself.]

That's why Moody's assigns most of these firms its lowest rating for short-term liquidity. And all the firms on this list have long-term debt that Moody's rates Caa or lower, which means the borrower is considered at least a "very high" credit risk.

Once a company defaults on its debt, or fails to make a payment, the next step is usually a Chapter 11 bankruptcy filing. Some firms continue to operate while in Chapter 11, retaining many of their employees. Those firms often shed debt, restructure, and emerge from bankruptcy as healthier companies.

But it takes fresh financing to do that, and with money scarce, more bankrupt firms than usual are likely to liquidate - like Circuit City. That's why corporate failures are likely to be a major drag on the economy in 2009: In a liquidation, the entire workforce often gets axed, with little or no severance. That will only add to unemployment, which could hit 9 or even 10 percent by the end of the year.

[Want to land a plum job without paying taxes? Here's how.]

It's possible that none of the firms on this list will liquidate, or even declare Chapter 11. Some may come up with unexpected revenue or creative financing that helps avert bankruptcy, while others could be purchased in whole or in part by creditors or other investors. But one way or another, the following 15 firms will probably look a lot different a year from now than they do today:

Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.

Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.

[See 5 pieces missing from Obama's stimulus plan.]

Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.

Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.

Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.

[See why "Wall Street talent" is an oxymoron.]

Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.

Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.

Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.

Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.

Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.

Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.

Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.

BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.

- With Carol Hook, Danielle Burton and Stephanie Salmon

Nine-year-old writes hit iPhone app

You might think you're pretty hot stuff because you've figured out how to change your Facebook status from your iPhone, but you've got nothing on nine-year-old Lim Ding Wen.

This young prodigy from Singapore is fluent in six programming languages, according to a BBC report this week, and his newest creation, an iPhone drawing game called Doodle Kids, has racked up over 4,000 downloads in just two weeks. He wrote it for his younger sisters, who love to draw.

Doodle Kids, which lets players sketch with their fingers on the iPhone's screen and shake it, Etch-A-Sketch-style, to clear, has already racked up a healthy three-and-a-half star rating on the App Store. One reviewer commented: "Awesome app!...Amazing that something like this was made by a 9 year old".

Friday, February 6, 2009

New York City remains No. 1, but China is catching up.


The soaring global economy of the last 20 years pushed the world's leading financial centers to enduring heights. Not their stock markets, which have collapsed, but their skylines.

All but two of the world's 20 tallest buildings (the 1,451-foot Sears Tower and the 1,250-foot Empire State Building) were built during this long bull market, according to Emporis, a global building-information company. Today the world's tallest cities reflect that growth.


New York City still stands tallest, with 35 towers over 700 feet, more than any other city. But China is catching up. Hong Kong is No. 2 with 30 such towers, and Shanghai is No. 4 with 21 towers.

These cities have risen fast. In 1999, Shanghai completed the 1,380-foot Jin Mao Tower. It was Shanghai's first building taller than 700 feet; since then the city has built 20 more.

No city in the world, however, has developed as explosively as Dubai. As oil wealth flooded the United Arab Emirates, the emirate of Dubai on the Persian Gulf poured money into construction, much as Houston had done decades earlier.

Today, Dubai is home to the world's tallest tower. The 2,684-foot Burj Dubai was topped off in January of this year. The building is scheduled to open in the fall of 2009. It will be the world's tallest building by 1,000 feet. The second-tallest building, Taipei 101 in Taiwan, is a comparatively modest 1,671 feet.

With the rise of China and Dubai, Chicago is now No. 5. Shenzhen, the Chinese city just north of Hong Kong, is closing in.

A report, released this week from the Council on Tall Buildings and Urban Habitat, estimates that by 2020, the world's skylines will again be redrawn. By 2020, Taipei 101, currently the second-tallest building in the world, will be No. 20.

Dubai is determined to stay on top. After completing the Burj Dubai, it is planning the 3,280-foot Nakheel Tower. Saudi Arabia hopes to build the 3,280-foot Kingdom Tower. Both towers are very tentatively scheduled for completion in 2020--if the oil keeps flowing out and the dollars keep pouring in.

The foundations are already being laid for other super towers around the globe. In Shanghai, the 2,073-foot Shanghai Tower will complete a trio of towers in the city's financial district, which currently includes the world's third-tallest building, the 1,614-foot Shanghai World Financial Center.

In the U.S. both Chicago and New York are racing to build new super towers. New York's Freedom Tower, also known as World Trade Center One, will reach 1,776 feet when completed. In Chicago, foundations are in place for the Chicago Spire, a planned 2,000-footer that would allow the Windy City to remain the home of America's tallest tower.

But whether these skyscrapers will ever touch the clouds depends how quickly the economy turns around. Across the world, projects are grinding to a stop, as financing collapses or demand for hundreds of floors of office space in financial districts disappears. The Chicago Spire, the Nakheel Tower and Moscow's planned 2,008-foot Moscow Tower have all been placed on hold in recent months.


"Ancient" Syriac bible found in Cyprus


NICOSIA (Reuters Life!) – Authorities in northern Cyprus believe they have found an ancient version of the Bible written in Syriac, a dialect of the native language of Jesus.

The manuscript was found in a police raid on suspected antiquity smugglers. Turkish Cypriot police testified in a court hearing they believe the manuscript could be about 2,000 years old.

The manuscript carries excerpts of the Bible written in gold lettering on vellum and loosely strung together, photos provided to Reuters showed. One page carries a drawing of a tree, and another eight lines of Syriac script.

Experts were however divided over the provenance of the manuscript, and whether it was an original, which would render it priceless, or a fake.

Experts said the use of gold lettering on the manuscript was likely to date it later than 2,000 years.

"I'd suspect that it is most likely to be less than 1,000 years old," leading expert Peter Williams, Warden of Tyndale House, University of Cambridge told Reuters.

Turkish Cypriot authorities seized the relic last week and nine individuals are in custody pending further investigations. More individuals are being sought in connection with the find, they said.

Further investigations turned up a prayer statue and a stone carving of Jesus believed to be from a church in the Turkish held north, as well as dynamite.

The police have charged the detainees with smuggling antiquities, illegal excavations and the possession of explosives.

Syriac is a dialect of Aramaic - the native language of Jesus - once spoken across much of the Middle East and Central Asia. It is used wherever there are Syrian Christians and still survives in the Syrian Orthodox Church in India.

Aramaic is still used in religious rituals of Maronite Christians in Cyprus.

"One very likely source (of the manuscript) could be the Tur-Abdin area of Turkey, where there is still a Syriac speaking community," Charlotte Roueche, Professor of Late Antique and Byzantine Studies at King's College London told Reuters.

Stories regarding the antiquity of manuscripts is commonplace. One case would be the Yonan Codex, carbon dated to the 12th century which people tried to pass off as earlier.

After further scrutiny of photographs of the book, manuscripts specialist at the University of Cambridge library and Fellow of Wolfson College JF Coakley suggested that the book could have been written a good deal later.

"The Syriac writing seems to be in the East Syriac script with vowel points, and you do not find such manuscripts before about the 15th century.

"On the basis of the one photo...if I'm not mistaken some words at least seem to be in modern Syriac, a language that was not written down until the mid-19th century," he told Reuters.

(Editing by Michele Kambas and Paul Casciato)

Companies that have never laid off employees

The global financial crisis has led many companies to slice payrolls, but these employers are staying loyal. Meet 9 of this year's Best Companies that, as of mid-January, have never had a layoff.

Nugget Market

Nugget1.gif
Courtesy: Nugget Markets

Best Companies rank: 10

81-year old grocery chain has been able to avoid layoffs through careful job placement and shrewd labor management.

For example, in troubled times when the company anticipates it will need fewer workers, it stops replacing employees who leave voluntarily.

To make it easier to fill gaps, store locations within 15 miles of each other share staff.

Also, employees are cross-trained: A deli clerk may also work as a bagger, allowing for more work hours, and still get the (higher) deli pay rate.

Meanwhile, the company relies on past employees (such as college students home on break) for temporary work, rather than staff up during busy times like the holidays.

Devon Energy

Best Companies rank: 13

This fiscally conservative energy company has a strong portfolio of oil and natural gas deposits that bring in $11.3 billion annually. Still, Devon adheres to the philosophy that its holdings would be worthless without a talented workforce.

The company has been able to avoid layoffs by making sure it keeps costs low during economic downturns and booms alike. Before the current crisis, Devon chopped its operating budget to match its cash flow from oil and gas production.

Devon also takes a prudent approach to hiring, maintaining an efficient workforce of highly trained employees. Voluntary turnover is a steady 4% a year. And instead of the traditional annual salary review, the company's compensation process is flexible: In slow years, employees sometimes forego raises, and in good times, they may be rewarded with midyear pay increases.

Aflac

aflac1.gif
Courtesy: Aflac

Best Companies rank: 26

Aflac, which sells supplemental insurance, has never had a layoff, living up to the mandate of founders John, Paul, and Bill Amos: "If we take care of our employees, the employees take care of the business."

Well-known for its quacking-duck ads, the company says remaining fiscally responsible, keeping a watchful eye on its budget, and listening to employee suggestions -- called "Bright Ideas" -- have helped keep it in good financial shape.

Indeed, the company has experienced double-digit sales growth each year since Dan Amos became CEO in 1990.

Options like telecommuting and flex schedules -- programs which resulted from employee suggestions -- have helped streamline the organization and save millions of dollars. Four recently approved "Bright Ideas" projects are expected to save $3 million annually.

QuikTrip

Best Companies rank: 27

This 24-hour convenience store chain is privately held, allowing it to pour profits back into stores instead of divvying them up among shareholders. Meanwhile, its strong balance sheet has helped it to weather economic downturns without having to cut staff.

Before he retired in 2002, former CEO Chester Cadieux expanded the empire by opening new stores and remodeling older locations, creating new jobs and providing promotion opportunities for existing employees. (Son Chester "Chet" Cadieux III is CEO now.) To keep costs low, the company rejects proposed expenditures that don't benefit customers or employee growth.

The Container Store

Container1.gif
Courtesy: Containerstore.com

Best Companies rank: 32

While most of the retail sector was hit hard during last year's fourth quarter, Container Store actually saw its November and December earnings increase over 2007 -- although that was the company's hardest in its 30 years.

It stuck to expansion plans despite the downturn -- opening four new stores last year, and adding 70 employees to its 4,000-strong workforce.

Those staffers get lots of training, too (average is 241 hours per employee per year).

The retailer has avoided layoffs in this economy by freezing salaries and keeping a watchful eye on the balance sheet. Famous for its "open door" communication-driven culture, Container Store asked employees to do all they could to ensure the company's strength during a tough retail climate.

A memo to staff from president Melissa Reiff read: "We have to be more responsive, more adaptable and much more efficient with our resources." A contest with cash incentives was held to boost sales.

NuStar Energy

Best Companies rank: 44

The philosophy at this pipeline operator (a spinoff of Valero): If you do a good job, you'll always have a job. Chairman Bill Greehey and CEO Curt Anastasio have maintained a no-layoff policy and consider employees their most valuable asset. They cite layoffs as "counterproductive," since they "erode morale, create fear and reduce productivity."

NuStar has avoided cuts even as other oil and gas companies are experiencing layoffs, by managing costs and constantly looking for ways to improve profits.

The dedication to keeping staff has paid off in a loyal workforce. After Hurricane Ike hit in September, the company's Texas City terminal sustained major damage. Many workers lost their homes in the storm but still reported to work the following day to help get the facility back up and running.

Says one employee: "It's an honor and pleasure to work for a company that considers you a valuable individual."

Stew Leonard's

Stew1.gif
Courtesy: StewLeonards.com

Best Companies rank: 53

The privately held grocery chain doesn't have to focus on quarterly earnings, allowing it to weather economic downturns and rising food prices without resorting to layoffs.

The company intends to maintain sales growth without raising prices, even in the current economy, by focusing on customer service and pushing top-selling items with lively store displays.

"We'd rather grow and develop our people and not lay them off just to increase short-term earnings," says CEO Stew Leonard, Jr., adding: "We are fortunate that we are in a business that does not have dramatic swings in sales due to the economy.

When the economy is great we don't see a big increase in sales and conversely, when the economy is bad, we don't see a big drop. One of the benefits of being in the food business is that people have to eat."

Scottrade

Best Companies rank: 60

No surprise that the online discount stock brokerage has faced challenges during the economic downturn. And while CEO Rodger Riney acknowledges that layoffs might be a conventional step to take, he was committed to retaining a talented workforce.

Because Scottrade is a privately held company with a conservative growth strategy, there's room for flexibility and a strong focus on the happiness -- and longevity -- of employees, he says. Lower profits have sometimes meant smaller bonuses some years, but associates have always received them despite the tough economy. According to one thankful employee: "Job security is priceless, not just for your pocketbook, but for your peace of mind."

Publix Super Markets

Publix.1gif.gif
Courtesy: Publix.com

Best Companies rank: 88

The company has seen sales increase during the downturn while competitors have endured layoffs and store closures.

Publix, which enjoys a strong balance sheet with no long-term debt, has focused on operational efficiency, managing costs, employee development, and store growth and expansion.

Last year, Publix acquired 49 stores closed by Albertson's and hired more than 1,250 people in those locations.

This grocery chain has never had a layoff in its 79 years in business. Since Publix is 100% employee-owned, it prides itself that "owners never want to lay off other owners."

Nearly 6,000 of the company's "associates" have made a career at Publix, having served 20 years or more.


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Calif. octuplets' mom speaks out

WHITTIER, Calif. – The veil of secrecy octuplets' mother Nadya Suleman shrouded herself in for more than a week was lifted Thursday with the release of public documents showing that the 33-year-old struggled with depression for years until she finally began to realize her childhood dream of having a huge family.

Suleman, who now has 14 children, told doctors she battled with depression for years after she was injured in a riot in 1999 at the state mental hospital where she worked.

The doctors' reports were included in more than 300 pages of documents released to The Associated Press by the state Division of Workers' Compensation on the same day NBC released excerpts of Suleman's first interview since giving birth last month. Among other things, the documents reveal that Suleman collected more than $165,000 in disability payments between 2002 and 2008 for an injury she said left her in near-constant pain and helped end her marriage.

Meanwhile, Suleman told NBC what her mother and others have said since the octuplets were born: that she always wanted a huge family to make up for the isolation she felt as an only child.

"That was always a dream of mine, to have a large family, a huge family," she said. "I just longed for certain connections and attachments with another person that ... I really lacked, I believe, growing up."

In the interview — scheduled to air on the "Today" show Monday and again Tuesday on "Dateline" — Suleman calls her childhood "pretty dysfunctional."

In the state report, however, doctors indicate she had a happy childhood. She told them she was an above-average high school student, enjoyed being a cheerleader, had many friends and stayed out of trouble. She said her parents were loving and supportive.

As an adult, however, she said she often battled depression as she struggled to get pregnant and particularly after her injury.

In the report, Suleman told a doctor she had three miscarriages. Another doctor disputed that number, saying she had two ectopic pregnancies, a dangerous condition in which a fertilized egg implants somewhere other than in the uterus. She told NBC she struggled for seven years before finally giving birth to her first child in 2001 through in vitro fertilization.

She told a doctor who conducted a psychological evaluation for a workers' compensation claim that the first birth was "the most wonderful, best thing that's ever happened in my life."

Suleman said all her children have been born through in vitro fertilization, with sperm donated from a friend. The first six range in age from 2 to 7. The octuplets are doing fine, said officials at Kaiser Permanente's Bellflower Medical Center, where they were born Jan. 26.

According to the state documents, which were released to the AP following a public records request, Suleman was injured Sept. 18, 1999, when a riot involving nearly two dozen patients broke out in the women's ward of the Metropolitan State Hospital in Norwalk.

As she was helping other staffers restrain a patient, a desk thrown at her by another patient hit her in the back. It caused damage to her spine and left her complaining of headaches and intense pain throughout her lower body for years.

She attributed it in part to the breakup of her marriage to Marcos Gutierrez, whom she had wed in 1996. She told a psychiatrist the bouts of depression she was suffering as a result of her injury were unfair to her husband.

"I don't want to keep bringing him down. I want him to move on with his life," she told a psychiatrist.

The couple split in 2000 and divorced last year. Gutierrez has not returned calls to phone numbers listed for him, and his divorce lawyer, Roberto Gil, declined comment.

Suleman has come under criticism from TV and radio commentators, bloggers and others who accused her of irresponsibly having more children than she appears prepared to care for. Some say she had the octuplets to cash in with a TV or book deal.

Although the two publicists she hired last week acknowledge she is reviewing such offers, one of her friends said Suleman simply loves children and didn't get pregnant for profit.

"She's not even interested in that right now," said Jessica Zepeda, who lives down the street. "It's funny and sad in a way, there's a lot of people saying really negative things and they don't know her."

Suleman's mother said she expects people's opinions to change now that her daughter is going public.

"She's a very likable person," Angela Suleman said Wednesday. "She's basically normal except for this obsession she's always had with children."

She's also a good mother, Angela Suleman said.

Her daughter, who was born in Fullerton, studied to be a psychiatric technician after graduating from a high school in La Puente in 1993.

She received a bachelor's degree in child and adolescent development from California State University, Fullerton, in 2006 and was studying there for a master's degree in counseling when she became pregnant with the octuplets.

"She may not be able to finish her master's degree now and she was so close to wrapping it up," her mother said.

Publicist Mike Furtney said Nadya Suleman has told him it's her dream to eventually earn a Ph.D. in some field involving counseling.

Public records show Suleman was listed on the Metropolitan State Hospital payroll from 1997 until last year, though it appears she did little work after September 1999 because of her injury.

Furtney said Thursday that Suleman was "feeling great" and looking forward to being reunited with her octuplets, who are expected to remain in the hospital for several more weeks.

"She's happy to be out of the hospital, although she misses her children," he said. "She can't wait until they join her."

The octuplets were born nine weeks prematurely and will be released from the hospital individually as they hit a near-normal newborn weight.

"At this point in their development, they are not mature enough to coordinate the suckling and swallowing at the same time to be bottle-fed," said Dr. Mandhir Gupta, the hospital's neonatologist.