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Experts: Jobs fall short

Written By Unknown on Sabtu, 09 Maret 2013 | 18.38

Call 236,000 U.S. gain 'modest'

Economists applauded yesterday's positive national employment report, but said the 236,000 jobs added in February are still a far cry from the numbers needed for robust recovery, especially as the country faces the impact of federal budget cuts.

"You're going to see a continuation of happier numbers, maybe an improvement, but if so, it will be a modest improvement," said Robert Nakosteen, an economics professor at the University of Massachusetts Amherst's Isenberg School of Management. "Not the kind of numbers you see in a normal recovery."

With the surprisingly high number of added jobs last month, the unemployment rate dropped two-tenths to 7.7 percent as more hiring took place and more people without jobs stopped looking for work.

The positive Labor Department report helped send the Dow Jones industrial average above 14,397, the fourth time in one week it broke its all-time high. Several sectors, including professional and business services, health care, retail and construction, all saw job gains.

Employment has risen by an average of 195,000 jobs over the past three months.

Nigel Gault, chief U.S. economist for IHS Global Insight, said sustained growth of 200,000 to 250,000 jobs each month would indicate a "much more vigorous" economy, yet historically the United States has been unable to hit that kind of stride for a substantial period of time.

"We had periods where we did that for two or three months and things slowed down again," he said. "I suspect, because of the sequester, the impact is we won't sustain job growth above 200,000 (a month) this year, but I think there's a good chance we can do it next year."

David Tuerck, executive director of Suffolk University's Beacon Hill Institute, said that despite the encouraging figures, the United States still lacks 4.9 million jobs compared to labor force conditions in place when President Obama was inaugurated in 2009.

"We remain stuck in a soft economy and the policies coming out of Washington are guaranteed to make things worse," he said.


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The Ticker

Downtown Crossing pushcart vendors out

The Downtown Boston Business Improvement District is pulling the plug on pushcart vendors, right, at the end of the month.

The elimination of the vendors, who have been selling food and merchandise ranging from burritos to T-shirts and umbrellas since the late 1970s, comes as the property owner-supported BID prepares to develop a new street merchandising program for 2014.

The move has angered some vendors who fear being stripped of their livelihoods. They operate under a year-to-year agreement that expires at the end of March.

The BID hopes to implement a smaller, transition pushcart program beginning this spring that includes fewer carts as construction in the district stands to eliminate currently available locations. Current vendors will be required to reapply for available spaces.

Google axing 1,200 more Motorola jobs

Google is cutting an additional 1,200 employees in its Motorola Mobility hardware unit, as the unprofitable cellphone maker struggles to compete. Last summer, Google announced 4,000 Motorola job cuts. The layoffs will affect workers in the United States, China and India and account for about 10 percent of the company's headcount.

Boeing moves flight training to Miami

Boeing Co. said it is consolidating its North American flight and maintenance training operations in Miami, a shift that will move all flight simulators for the 787 Dreamliner and other aircraft out of the Seattle area.

Miami is the company's largest flight-training center and is preferred by airlines based in Latin America, as well as the United States, Middle East and Europe, Boeing said.

THE SHUFFLE

  • The Training Associates has appointed Bill Bowman, left, as a senior consultant to work with senior management to secure private equity for company growth. Bowman previously served as CEO of U.S. Inspect and president of ChildrenFirst Inc., and was co-founder of Logal Software and Spinnaker Software Corp.
  • Seven Step Recruiting has hired Doug Lubin as director of business development. He previously served as director of recruitment process outsourcing solutions at Yoh RPO.

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History updated in Westwood

This gracious 1920 Colonial got a major addition in 1991, but what's really unique is its stone cottage out back built by a World War I general.

The five-bedroom yellow clapboard house with black shutters at 152 Grove St. in Westwood sits on four acres of land, surrounded by a stone wall with rolling grass area, rock ledges and a fieldstone cottage.

The cottage was built by former owner of the land and neighbor U.S. Gen. Clarence Ransom Edwards, who in 1920 built a replica of his French headquarters in World War I where he led the 26th Infantry Yankee Division into battle. The current owner uses the cottage, featuring red clay tile floors, a large fireplace, shelves and mapboards, for entertaining.

The original 1920 area of the house, built as a summer home, has restored oak floors throughout and holds a formal living room with a wood fireplace, an enclosed porch and also a formal dining room, all with restored 8-over-8 rope-operated windows. The second floor has a master bedroom suite with a dressing room, closet space and ceramic en-suite bathroom. The second bedroom is currently used as a study and there's also a smaller third bedroom and a second full ceramic-tiled bathroom.

A major addition in 1991 is sympathetic to the original with a separate entrance and lots of 8-over-8 windows that look out onto the large back yard that has a granite paver patio. The addition includes an expanded and redone kitchen with a sunny breakfast room, a sunken living/family room, two more carpeted bedrooms and an attached three-car garage.

The large recessed-lit oak-floored kitchen has 35 white cabinets, plus an adjacent pantry with more cabinets for china. There's a large center gray-granite topped island and an adjacent cushioned window seat and second pantry closet. Appliances include a 5-year-old Thermador propane gas stove, two new white General Electric wall ovens, a new white Miele dishwasher and a white Sub Zero refrigerator.

Adjacent is the oak-floored breakfast room with nice views out to the back yard. This space segues into a carpeted sunken living/family room that's graced with a wood-burning fireplace bordered by built-in bookshelves.

Off the kitchen, in the entry foyer, is a laundry/mud room with a washer and dryer, as well as a sink and shower. There's also an adjacent half bath added in 1991, as well as direct access to a three-car garage.

The second floor of the addition features two carpeted bedrooms, a home office room that could be a nursery, and a library/sitting area. The two bedrooms are good sized with large closets and built-ins with bookshelves and desks. The bedrooms are served by a white ceramic-tiled full bathroom, and there's a laundry closet with a chute down to the first-floor laundry room.

There's a large carpeted playroom with built-ins over the garage with a large arched window.


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BRA approves pay boosts

The Boston Redevelopment Authority has beefed up its staffers' salaries for the first time in five years.

The agency, whose budget is separate from the city's, recently awarded 3 percent raises to all except the top employees.

"This was the right time financially to give a cost of living increase," said BRA spokeswoman Susan Elsbree.

BRA employees have had no salary increases — only pay cuts and reinstatements — since 2008.

In June 2009, amid the Great Recession, the BRA slashed the salaries of all but the lowest-paid workers and cut 24 jobs to help address a $4 million budget shortfall.

Those wages were restored in late 2011 as the economy improved and lease revenue from BRA-owned property increased.

The BRA payroll has shrunk from 268 workers in fiscal 2009 to 207 today. The agency has also cut back on travel.

"We're just better positioned now," Elsbree said. "There was a lot of cost-cutting and belt-tightening, and now we're on better financial footing."

The 3 percent raises increased the number of BRA employees who earn six figures, according to publicly available payroll data requested by the Herald. There are 34 staffers above the $100,000 salary level, eight more than last year.

The most senior staff — nine employees including BRA director Peter Meade — did not receive pay hikes. Meade has the highest salary at $164,640, followed by chief planner Kairos Shen at $160,680.

BRA positions range from administrative assistants and project managers, to architects, planners, engineers and researchers.

Meade recently restructured the BRA's economic development department after the departure of a key director.

He created a division of business development led by Randi Lathrop, known for her work in Downtown Crossing.


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Copley Place builder may shop tower as luxury apartments

Written By Unknown on Jumat, 08 Maret 2013 | 18.38

The stalled Copley Place tower project may come back to life as a luxury apartment high-rise.

The head of developer Simon Property Group recently hinted at a shift for the 47-story tower, which had been approved for 318 condominium units.

"We're still designing the building," CEO David Simon said during an earnings conference call last month. "But the idea that we're circling right now is to do mostly rentals, though there will be some condo element to it."

Simon spokesman Les Morris declined to elaborate on the plan yesterday.

The Boston Redevelopment Authority approved the 
$500 million project last fall but has not received any updates lately. Neither has the Massachusetts Department of Transportation, which leases the property to Indianapolis-based Simon.

The Copley Place tower would take several years to build. It would add a prominent glass structure to the Back Bay skyline between the Prudential and Hancock towers.

Greg Vasil, CEO of the Greater Boston Real Estate Board, said there's a strong market for apartments in Boston now. "With all the other projects in the pipeline, I'd assume they would want to move forward fairly quickly," he said.


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Report lays new foundation for housing policy

The housing market is on the mend but experts say the healing process has been held back by "rigid" rules for buyers and lenders.

A bipartisan commission of former Cabinet secretaries, ex-senators and top housing and economic experts released an expansive new vision for housing policy last week, calling for a greater role for the private sector and a more limited role for the federal government.

The panel also advocated for the elimination of government-sponsored mortgage lenders Fannie Mae and Freddie Mac, along with reform of the Federal Housing Administration to improve efficiency.

"Today, a number of obstacles prevent a return to the conditions that prevailed in the late 1990s — before lax underwriting infiltrated the system and contributed to the crisis — and stand in the way of qualified borrowers accessing mortgage credit," the Bipartisan Policy Center's 136-page report states. "Restoring the appropriately conservative underwriting standards in place before the housing bubble, with their focus on the overall creditworthiness of the borrower, could help to improve the health of the housing market."

The FHA appears to be more cautious than it used to be. The report notes that in 2012 the average FICO score for an FHA loan was close to 760 on a range of 300 to 850, compared to the 710-720 that the average Fannie Mae and Freddie Mac borrower had in 2001.

"The pendulum may have swung too far in the wrong direction," said Nicolas Retsinas, director emeritus of Harvard University's Joint Center for Housing Studies, who served on the housing commission. "We want to make sure we are not so strict with our lending standards to facilitate a full recovery to the housing market."

Other obstacles discussed in the commission's findings include a lack of access to credit for well-qualified, self-employed individuals, potential "put-back" risk to lenders liable for government-backed mortgages that default, and the sale price of distressed or foreclosed homes used as comparisons in appraisals of non-distressed property.

Retsinas also noted that the housing recovery has been bumpy because several important federal rules are still pending

"We need to increase clarity and consistency for many lenders. We also have to create a system that doesn't favor large lenders," he said. "We need to have a level playing field."

Jennifer Athas, a licensed real estate broker, can be reached on Twitter 
@JenAthas.


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The Ticker

Facebook fixes feed

Facebook has redesigned the main attraction of its social network to address complaints that its website has turned into a jumble of monotonous musings and random photos.

In an attempt to breathe new life into Facebook's News Feed, the company will introduce new controls that allow people to sort streams of photos and other material into organized sections.

Facebook CEO Mark Zuckerberg, above, hopes to turn the News Feed into something more like a newspaper tailored to the particular interests for each of the social network's more than 1 billion worldwide users.

Zipcar shareholders OK Avis deal

Shareholders of Zipcar approved the Cambridge car-sharing company's nearly $500 million sale to auto rental giant Avis Budget Group. The deal is expected to be finalized next week.

U.S. regains wealth lost in recession

Surging stock prices and steady home-price increases have finally allowed Americans to regain the $16 trillion in wealth they lost to the Great Recession.

Household wealth amounted to $66.1 trillion at the end of 2012, the Federal Reserve said. That was $1.2 trillion more than three months earlier and 98 percent of the pre-recession peak.

Verizon spends $545M on network

Verizon said it invested more than $545 million in its Massachusetts telecom infrastructure last year.

Most banks pass Fed 'stress test'

Major U.S. banks have enough capital to withstand a severe economic downturn, the Federal Reserve said, with all but one major bank passing the regulator's annual "stress test."

All 18 participating lenders except for Ally Financial — government-owned after being rescued during the financial crisis — met the minimum hurdle of a 5 percent capital buffer.

Bank of America cleared that with 6.8 percent, while Boston's State Street Corp. notched 12.8 percent.

TODAY

  • U.S. Labor Department releases the unemployment report for February.
  • Veteran technology marketing executive Mark Fredrickson, left, has joined Boston marketing agency Conover Tuttle Pace as a managing director. He previously served as vice president of corporate communications and marketing strategy at EMC Corp. At CTP, Fredrickson leads the technology practice.

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Mass., R.I. take income tax bites

Mass., R.I. take income tax bites

Tax season is upon us and the Herald's TaxSmart experts are here to help. Today, Art Ford of Sullivan Bille Group of Tewksbury discusses issues involving multi-state returns.

I work in Rhode Island, but live in Massachusetts. My employer took state taxes in both states. I was informed that I would be able to get the Rhode Island taxes refunded as I am a Massachusetts resident. However, when I did my taxes ... I ended up owing Massachusetts more taxes and receiving a third of my Rhode Island taxes back. Is this correct? Just seems wrong that I pay resident taxes in both states, but live in one.

— Mary Richardson

This is an example of a multi-state return.

As the reader suggests, these can be a pain, as the rules in each state are different and, in this case, both states have an income tax.

Your Rhode Island income must be included on your Massachusetts return, but Massachusetts allows a tax credit for taxes paid to Rhode Island.

The Massachusetts income tax rate is currently 5.25 percent.

Rhode Island has different deductions and exemptions than Massachusetts and it has three graduated tax rates.

Rhode Island has a rate of 3.75 percent on taxable income up to $57,150; 4.75 percent above that up to $129,900; and then 5.99 percent above $129,900.

So, if you are in the 3.75 percent Rhode Island bracket, there will be an additional tax to Massachusetts of 
1.5 percent.

Email your TaxSmart questions to bizsmart@bostonherald.com


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Wall Street clips Staples on forecast

Written By Unknown on Kamis, 07 Maret 2013 | 18.38

Investors reacted strongly to Staples' weaker-than-expected forecast and news that the office products retailer would invest the majority of its $150 million in cost-savings this year back into the business.

The Framingham-based chain's shares dropped by more than 7 percent to close at $12.14 yesterday.

"Clearly, the earnings guidance for fiscal year 2103 was disappointing," said Anthony Chukumba, a BB&T Capital Markets analyst. "Investors would have preferred to see more of that (savings) flow through to the bottom line."

Last fall, Staples unveiled a cost-cutting "reinvention" plan with expected savings of $250 million annually by early 2016. The plan included reducing U.S. and European store counts, more investment in online and mobile efforts, and expansion beyond traditional office supplies into break room supplies, copy and print, and technology.

Staples plans to reinvest this year's savings into "sharper" prices, information technology, expanded marketing, customer acquisition and employees.

"Our new vision is every product your business needs to succeed, and we're confident that we can accelerate growth in categories beyond office products," Staples chief Ron Sargent said, pointing to the company's progress in sales of supplies for facilities and break rooms, which grew more than 
$200 million last year for a $1.8 billion business. "We see big opportunities in areas like technology products, medical supplies, safety supplies, mail and ship, and office decor."

Staples also has developed a smaller, 12,000-square-foot store format with an updated Staples.com kiosk and "endless-aisle" shopping. The first ones will open this quarter. "We're confident that we can retain the vast majority of our sales in this new format while also driving sales of an expanded online offering," Sargent said.

Staples eliminated more than 1 million square feet of retail space last year and plans to cut an equal amount this year through 30 net store closings and 45 combined relocations and downsizings, half to the new store format.


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PRIM eyes prime properties

The state pension fund is set to go on a billion-dollar commercial real estate buying spree and experts say now is a great time to buy.

About 10 percent — or 
$5 billion — of the state's
$52 billion pension fund is currently invested in real estate, much of it in direct ownership of properties, including the fund's home at 84 State St. in downtown Boston.

State money managers recently decided to borrow against the pension fund's real estate portfolio, raising $1 billion at favorable terms, and hunt for more properties to purchase.

"Our appetite near-term for real estate has gone up. We have five real estate managers who are trying to identify real estate we can buy," Michael Trotsky, executive director and chief investment officer for the state pension fund, told the Herald. "We are looking mostly for 'core' real estate — the best buildings in the best locations, primarily in the United States, but we don't specifically target any city. It will be throughout the country."

David Begelfer, CEO of commercial real estate trade group NAIOP Massachusetts, said it's a superb time to buy for anyone who "does their homework."

"The market in Massachusetts, especially Eastern Massachusetts, has been extremely strong over the last couple of years and looks to be strong going forward," Begelfer said. "Many markets around the country are still recovering and so there are certainly some opportunities."

The pension fund already owns 87 commercial properties, plus several others through partnerships.

For example, in California, the fund owns the Market Street office and retail building in downtown San Francisco, a shopping center anchored by a Safeway in Mill Valley, and the Carmel Medical Office building in Rancho Bernardo.

The portfolio includes 2020 K St. in Washington, D.C. — the 11-story home to several Bingham McCutchen lawyers and the George Washington University Press — and the Sawgrass Lake Center, an office complex in Sunrise, Fla.

Last year, the pension fund returned 13.9 percent, much higher than its 8 percent target — and starting this year the state's target return has been increased to 8.5 percent. There are 522,800 members of the pension plan — 329,000 active and 199,000 retired, according to the state treasurer's office, which oversees the pension fund.

Trotsky said he expects the pension fund to invest the extra billion dollars within two years. The last time the pension fund went on a similar real estate buying spree in the 2000s, it netted $400 million extra.

"We're taking advantage of the low-interest rate environment and we expect it to generate $400 million in 'excess' profits over the next seven and a half years," he said. "It was considered very safe by outside investors. (The pension fund) is so big and so stable that it's not considered a big risk to issuers of this debt."


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DeLeo: Gov’s tax hike plan damaging

House Speaker Robert DeLeo will tell Hub business leaders today that working families and businesses shouldn't have to suffer "collateral damage" from Gov. Deval Patrick's plan to hike taxes by nearly $2 billion to pay for transportation and education.

"Sensitive to today's economic realities, I'm worried that the administration's proposal places too heavy a burden on working families and businesses struggling to survive," DeLeo says in a speech this morning to the Greater Boston Chamber of Commerce, according to his prepared remarks.

"We want to minimize the pressure on Massachusetts citizens as we find a way to meet our goals. If we are to pass a new revenue package, I believe it should be far more narrow in scope and of a significantly smaller size."

Patrick has proposed nearly $2 billion in new taxes to fund education and transportation projects and wants to hike income taxes; make regular increases in MBTA fares, RMV fees, highway tolls and the gas tax; and raise taxes on cigarettes, candy and soda, while lowering the state sales tax.

Some lawmakers prefer separating the $1 billion in transportation financing from the full state budget, with user fees instead of broad-based taxes.

In his chamber speech, DeLeo will also discuss funding for education, another Patrick priority.

"These areas cannot be sufficiently addressed without the injection of additional revenue into the system," DeLeo says. "While we agree we need to focus on these two areas, I do differ on the amount of new revenue that Massachusetts families and business should be asked to contribute."


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Longtime Mass. ice business on block

Longtime Mass. ice business on block

GLOUCESTER, Mass. — A company that's been supplying Gloucester fishermen with ice for decades is for sale as the fishing industry faces a brutal 2013.

The owner of Cape Pond Ice Co. tells the Gloucester Times that he has no choice as local fishermen absorb a 77 percent decrease in their cod catch this fishing year, which starts May 1.

Scott Memhard is asking $2 million for the property, which includes 180 feet of dockage where boats stop to ice up before heading out.

The business has diversified as the local fishing industry has declined. It increased T-shirt sales after a character wore a Cape Pond Ice shirt in the movie The Perfect Storm. He also marketed his ice for cocktails.

But he said the drastically declining fish catch is too damaging to his core business.


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Former GM executive tapped for Toyota board

Written By Unknown on Rabu, 06 Maret 2013 | 18.38

TOKYO — Toyota has tapped a former executive at U.S. rival General Motors to join its board, the first time in the Japanese automaker's 76-year history it is appointing directors from outside the company.

The appointment of Mark Hogan, effective April 1, underlines efforts at Toyota Motor Corp. to become more internationally-minded, transparent and nimble in regional markets as it recovers from difficult years, including the massive recall fiasco in the U.S.

Under the changes announced Wednesday by President Akio Toyoda, Toyota will set up a new division to oversee North American, European and Japanese markets and another for emerging markets.

The world's biggest automaker also promoted four non-Japanese managers to oversee regional businesses, including James Lentz, an American who already leads Toyota Motor Sales in the U.S. He will head the North American region.

Like other conservative Japanese companies, Toyota has been far more insular than its Western counterparts, and had been closed in the past to the idea of board members from outside company ranks.

The changes reflect soul-searching at the company following the massive global recalls over sticky gas pedals, faulty floor mats, problem breaks and other defects that spanned several years from 2009, and affected more than 14 million vehicles — some models being recalled repeatedly.

The recalls tarnished Toyota's reputation for quality and raised questions about its ability to respond to problems that crop up in its rapidly expanding global empire, and to reassure international authorities and customers of its trustworthiness and transparency.

Besides Hogan, two Japanese, from the insurance and securities industries, were picked as outside board members. They are Ikuo Uno, an executive advisor at Nippon Life Insurance Company and Haruhiko Kato, president of the Japan Securities Depository Center.

Hogan, an independent consultant and former GM group vice president, has been Toyoda's friend since they worked together more than a decade ago at NUMMI, or New United Motor Manufacturing, a California auto plant jointly run by Toyota and GM. Hogan has also previously advised Toyota.

The board appointments require approval from shareholders at a meeting in June.

Toyota has had a foreigner on its board just once in the past, in 2007, with Jim Press, an American who had headed Toyota's North American operations at a time when fears were growing about a possible American backlash over Toyota's stupendous growth. But Press left shortly afterward for a job with Chrysler.

Toyoda acknowledged that he has learned "many lessons" since becoming Toyota president in 2009, including the risks of rapid growth.

"Rapid growth can also mean rapid descent, creating havoc for many people," he said.

Toyoda referred to the quality woes, as well as the other recent crises such as the 2011 earthquake and tsunami in northeastern Japan and the flooding in Thailand that followed. Both disasters destroyed key suppliers and hobbled Toyota's production.

But he promised Toyota will be more responsive in each region, while staying competitive and quick, even as it keeps growing as a global manufacturer, now employing 320,000 people.

"The larger Toyota becomes, the more difficult it becomes to create the mood for each worker to feel he or she plays a direct role in supporting Toyota," Toyoda said.

"The objective of the changes being announced today is to build an organization where people can take ownership of their work as we enter a new phase of growth in vehicle sales."

Toyota was No. 1 in global vehicles sales last year, dethroning General Motors, which had been the top-selling automaker for more than seven decades before losing the title to Toyota in 2008. But GM retook the sales crown in 2011, when Toyota's production was hurt by the Japanese disaster.

Toyoda, the grandson of the automaker's founder, stressed that the changes he hopes to spearhead herald a return to Toyota's roots.

The Toyota Way, a production method that empowers each worker for quality control, also encourages each employee to be innovative and independent. That spirit of valuing the people on the ground needed to be revived for Toyota's future, he said.

Among other changes outlined by Toyota:

— A new division called "Unit Center" oversees the operations related to engines, transmissions and other key auto components, including technology, production planning, and manufacturing.

— Lexus International, Toyota's luxury-vehicle division, which already exists as a relatively autonomous group, will be beefed up further, to become a premium brand overseen directly by Toyoda.

— Former President and current Chairman Fujio Cho will become honorary chairman and leave the board, while Takeshi Uchiyamada, a board member and engineer known as "the father of the Prius," Toyota's prized hybrid model, will become chairman.

— The other key non-Japanese promotions include Steve St. Angelo, an American overseeing North American production who will lead Latin American operations and South African Johan van Zyl. He has worked for Toyota in the Middle East and Africa and will lead the business in the African region.

___

Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama


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Dow lifts Bay Staters’ hopes

Wall Street cheered as the Dow Jones industrial average soared to a record high yesterday, and Bay State residents and economic experts are hopeful the long-awaited recovery finally has taken hold.

"What we're seeing is a continuation of good news and the more we look around, the more green shoots we're seeing," Christine Armstrong, senior vice president at Morgan Stanley, told the Herald. "When we see this happen, it's bullish for the economy and bullish for the market longer-term."

Bay State residents saw positive signs in the record Dow, which rose 125.95 points to finish at 14,253.77, smashing its highest previous close of 14,164.53 on Oct. 9, 2007.

"If you look at a stellar day, it's a good sign, but the real sign will be when the movers and shakers start hiring," Charlie Duquette of Stoughton said yesterday at South Station. "The market usually precedes reality. In the spring, it's going to thaw, and I think you're going to see a hiring frenzy."

Liz Isaac of North Attleboro said the Dow's performance shows that the federal government sequester "isn't going to cause immediate apocalypse."

"I'm in the middle of a job search, and I see lots of openings and hear lots of positive talk," she said.

But Armstrong warned that the Dow would most likely pull back over the next few days.

"We still have problems — look at how many Americans are still out of work and losing homes," she said. "It's not a party for everybody. It's a party for a lot of people and they're hopefully pulling the rest with them."

Robert Nakosteen, a professor of economics at the University of Massachusetts Amherst's Isenberg School of Management, called the Dow's performance the culmination of a trend that has been going on ever since interest rates were pushed to near zero by the Federal Reserve.

"People who have extra money and want some return invest in stocks," he said.

Although unemployment is still high, businesses have "tremendous" profits, making the stock market very attractive, he added.

"The sequester aside, the economy's really starting to firm up," Nakosteen said. "By no means is it in great shape, but the fact that the stock market is doing well reflects that there's more optimism."

Andre Mayer, senior vice president for research at Associated Industries of Massachusetts, said "the chances of a meltdown seem to be less."

"The economy, though growing very slowly, is much more stable than it was," he said.

All eyes will be on Wall Street today to see whether the Dow's index of 30 blue-chip stocks can hold its record gains — and whether the economy as a whole gets a lift.

"It seems to me (the economy) is doing better," said Carolyn Hoffman of Greenfield. "I have more faith it's headed in the right direction."


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Samsung invests $112 million in Japan's Sharp

SEOUL, South Korea — Samsung Electronics Co. said Wednesday it will invest 10.4 billion yen ($111.5 million) in Sharp Corp. to secure a supply of large-size LCD panels.

The agreement gives Samsung a 3 percent stake in Osaka-based Sharp and a supply of large-size LCD panels for televisions. Samsung said in a statement that the investment will help strengthen Sharp's LCD panel business. The South Korean company known for its Galaxy smartphones and tablets said it will not be involved in Sharp's management.

The alliance is a boost for the troubled Japanese company that has been seeking to raise capital as part of its turnaround plans. Sharp shares jumped 14.1 percent in Tokyo trading.

The maker of Igzo display panels and Aquos TVs has struggled to stay afloat as competition from South Korean and Chinese TV makers squeezed Japanese manufacturers and their ability to make the big capital investments needed in the hyper competitive LCD industry.

Sharp has been in talks with Taiwan-based Hon Hai Precision Industry Co., also known as Foxconn, to raise capital but no deal has been reached. Sharp announced in December a 9.9 billion yen investment from Qualcomm Inc. to jointly develop new display technology.

Sharp has LCD panel factories in Kameyama and Sakai in Japan and produces small- and medium-sized panels for smartphones as well as large panels for TVs.

The deal with Samsung helps Sharp ramp up its display panel production. Sharp's panel clients include Samsung's rival Apple Inc. and Samsung, though the South Korea company gets most of its panel supply from its affiliate Samsung Display Co.

Sharp forecasts a record 450 billion yen ($5 billion) loss for its business year through March and has struggled to cut costs and reshape its business, partly because it has invested in expensive plants in Japan that make panels for which prices have fallen sharply overseas. The plants embody Sharp's prized technology, but they also make the company hostage to the yen's swings.

The agreement is the latest investment in Japanese firms by Samsung, which sits on a stockpile of cash and has strong overseas buying power because of the won's rise. In January, it acquired a 5 percent stake in Wacom Co., a Japanese firm with digital pen technology.


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Markets keep rising after Dow hits record high

LONDON — The Dow's new all-time high and better economic data from the United States propelled world markets Wednesday, with European stocks hitting a four-year high.

Investors are cheered by major central banks' commitments to keep supporting growth in the world biggest economies — the U.S., China, the 17-country eurozone, Japan and Britain.

That has helped them look past a budget impasse in Washington. Automatic government budget cuts took effect last week after President Barack Obama and Congress failed to reach a budget deal. The $85 billion in cuts are expected to hurt U.S. economic growth, but for now investors seem happy to buy further into the market rally.

European shares added to gains reaped a day earlier, when the Dow posted a new record. Britain's FTSE 100 rose 0.1 percent to 6,439.54 while Germany's DAX advanced 1 percent to 7,950.84. France's CAC-40 added 0.3 percent to 3,798.65.

A broader measure of European stocks, the Stoxx Europe 600, rose to its highest level since June 2008.

Wall Street also showed no signs of slowing, with Dow Jones industrial futures rising 0.4 percent to 14,284 and the broader S&P 500 futures up 0.4 percent to 1,542.50.

Japan's benchmark index reached a multi-year closing high, capping a day of positive trade in Asia. The Nikkei 225 jumped 2.1 percent to close at 11,932.27, the highest finish since September 2008.

Hong Kong's Hang Seng added 1 percent to 22,777.84. South Korea's Kospi rose 0.2 percent to 2,020.74. Australia's S&P/ASX 200 advanced 0.8 percent to 5,116.80. Benchmarks in Singapore, Taiwan, Indonesia and mainland China rose.

Ric Spooner, chief market analyst at CMC Markets, said the new highs reached on Wall Street provided a psychological boost to investors but that such gains can go into reverse pretty quickly.

"From the big picture point of view, there is a lot of risk in either direction for the stock market at the moment," he said. "But we could quite easily continue rising, given how low interest rates are."

Federal Reserve chairman Ben Bernanke has recently suggested that the central bank would continue its campaign of massive bond-buying, known as "quantitative easing," to support the world's biggest economy. The issuance of bonds has pushed their prices down, steering investors toward stocks.

"The lesson is clear. Don't bet on Capitol Hill. Bet on Fed Chairman Ben Bernanke instead. To be sure, it was Bernanke's reassurance, as last week's congressional testimonies on monetary policy, to keep QE3 on its present course that turned a worried stock market into a record high," said analysts at DBS Bank Ltd. in Singapore.

Meanwhile, Japan's central bank is expected to sharply loosen its monetary policy to get the economy growth after two decades of stagnation. Chinese authorities have committed themselves to their economic growth target, while the European Central Bank is expected to leave interest rates at record lows for the foreseeable future.

In commodity markets, the benchmark oil contract for April delivery was down 26 cents to $90.56 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 70 cents on Tuesday, hours after the death of Venezuelan President Hugo Chavez, whose country sits on the world's second-largest oil reserves, after Saudi Arabia.

In currencies, the euro shed 0.2 percent against the dollar, to $1.3030, while the dollar rose 0.1 percent against the Japanese yen, to 93.42 yen.

___

Pamela Sampson in Bangkok contributed to this report.


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Pact Stops grocer’s worker woes

Written By Unknown on Selasa, 05 Maret 2013 | 18.38

Stop & Shop appears to have avoided a potential lockout or strike by 40,000 workers after reaching a tentative contract deal with their union locals.

The agreement with United Food and Commercial Workers International Union, reached around 
4 a.m. yesterday, is subject to legal review before ratification meetings are scheduled with union members in Massachusetts, Connecticut and Rhode Island.

"Stop & Shop is pleased to have reached tentative agreements with each of the five New England UFCW local unions," said Suzi 
Robinson, spokeswoman for the Quincy-based supermarket chain.

Stop & Shop had set up hiring centers in January to recruit temporary replacement workers in case talks reached an impasse.

"We have not yet had to use the temporary workers," Robinson said. "No union has initiated any work stoppage during (current) negotiations."

Union officials did not return calls for comment.

The workers' contract originally was scheduled to expire at midnight on 
sFeb. 23, but was extended to midnight Sunday as negotiations continued.

Talks apparently got contentious over the weekend, based on an update posted on the union's website just after midnight on Sunday.

"Stress is very high, and emotions are playing a greater role as the exchanges of proposals creates more questions than solutions," union presidents said in the update. "We are quite a bit apart on wages, and we are significantly apart on a multitude of heath-care issues."


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Firm makes it a Snap to pay around the world

Truly global commerce where merchants can take payment in almost any major currency is getting a boost from an Israeli firm that just opened offices in Waltham.

BlueSnap powers transactions in 145 countries and 28 currencies, said Ralph Dangelmaier, who took over as CEO six months ago.

"We're pretty confident when merchants use us, we increase their business 20 to 40 percent," Dangelmaier said. "It's because we offer lots of payment types, so it's easy to pay, and in their own language."

BlueSnap, whose main competitor is eBay-owned PayPal, also allows merchants to run promotions and it offers subscription billing on a monthly, quarterly or annual basis, he said. They pay between 
2 percent and 8 percent of each transaction, depending on what they're selling, the type of payment and where it's coming from.

Founded in Israel in 2002 under the name Plimus, BlueSnap has had offices in Silicon Valley since 2006, and it's expanding in all three locations, Dangelmaier said.

In 2011, Great Hill Partners of Boston bought controlling interest of the company for $115 million.

"It seemed like a pretty decent bet that more businesses were going to be selling software content and subscription services online over the next five to 10 years," said Matt Vettel, managing partner at Great Hill Partners.

Today, BlueSnap has about 120 employees and about 5,000 clients worldwide, most of them outside the United States, Dangelmaier said. PayPal is one of its competitors, but doesn't customize screens for merchants, allow promotions or subscriptions, or accept as many payment types, he said.

"We think we've built a better mousetrap," Dangelmaier said.


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State picks Pike's peak

Hub developers Samuels & Associates and Weiner Ventures got a green light from the state to build a $360 million residential, hotel and retail project over the Mass Pike — big plans in the Back Bay that could get even bigger.

The real estate firms won a lengthy competition for two key air-rights parcels with twin developments that promise to raise cash for taxpayers and transform the intersection of Boylston Street and Massachusetts Avenue.

"It really fills in part of the Back Bay that really, simply put, needs to be filled in," developer Adam Weiner said yesterday after the Massachusetts Department of Transportation announced its selection. "It really needs more energy and greater vibrancy."

With the state-owned sites all but secured, the Samuels/Weiner team will pursue an adjacent air-rights parcel owned by insurance giant Prudential Financial to extend the development farther down the block. Prudential had teamed with losing bidder Chiafaro Co. on a 29-story office tower on its parcel and the state-owned Parcel 15.

Meanwhile, according to sources familiar with the situation, Samuels/Weiner are working on a deal to buy a Dalton Street parking garage, across from the Hynes Convention Center, where the development could expand even more.

Onetime air-rights bidder Carpenter & Co. of Cambridge dropped out of the running last summer after failing to make a deal with garage owner Pilgrim Parking. Carpenter had planned a 16-story office tower on the site, next to a 200-room hotel.

Weiner declined comment about a garage deal. He noted a Prudential executive said during a community meeting that the company would "act accordingly" with whichever developer is designated.

"We look forward to having conversations with them," Weiner said. "The project doesn't depend on it, but obviously it seems to be a natural (extension)."

A Prudential spokesman declined comment. Ted 
Oatis, co-founder of the Chiofaro Co., said the developer "would welcome the opportunity to work contemporaneously" with the Samuels/Weiner team.

MassDOT is finalizing a 99-year lease with initial payments of $18.5 million from the developers. State transportation chief Richard Davey said the Samuels/Weiner proposal "provides the best overall value and long-term benefit to the city of Boston."

The project, subject to city permitting, calls for a 32-story hotel and residential tower across Parcel 15 and a St. Cecilia Street parcel the developers bought from the Archdiocese of Boston for nearly $14 million in 2008 — with the development in mind all along.

On Parcel 12, an L-shaped structure would include a mid-rise residential building along Boylston and a two-story retail building over the Pike along Mass. Ave., capitalizing on nearby Newbury Street's posh shopping district.

The two sites total 230 residential units, a 270-room hotel and 50,000 square feet of shops and restaurants. It was the consensus favorite of a powerful Back Bay citizens advisory committee that reviewed all of the plans.

"Covering up the Mass Pike will knit the Back Bay together," said Meg Mainzer-Cohen, president of the Back Bay Association, who served on the panel. "We think the hotel is going to be very exciting. This is the hottest hotel market in Boston, and right next to (the Hynes) is an ideal site."


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India rejects Bayer plea against cheap cancer drug

NEW DELHI — India's patent appeals office has rejected Bayer AG's plea to stop the production of a cheaper generic version of a patented cancer drug in a ruling that health groups say is an important precedent for getting inexpensive lifesaving medicines to the poor.

Last year, India's patent office allowed local drug manufacturer Natco Pharma Ltd. to produce a generic version of Bayer's kidney and liver cancer drug Nexavar on the grounds it would make the drug available to the public at a reasonably affordable price. It was the first use of compulsory licensing under Indian patent laws passed in 2005.

The Intellectual Property Appellate Board rejected the German drug maker's appeal of the 2012 ruling on Monday. It also ruled that under the license Natco must pay 7 percent in royalties on net sales to Bayer.

Bayer sells a one month supply of the drug for about $5,600. Natco's version would cost Indian patients $175 a month, less than 1/30th as much.

Western pharmaceutical companies have been pushing for stronger patent protections in India to regulate the country's $26 billion generics industry, which they say frequently flouts intellectual property rights. However, health activists and aid groups counter that Indian generics are a lifesaver for patients in poor countries who cannot afford Western prices to treat diseases such as cancer, malaria and HIV.

Bayer said Tuesday it "strongly" disagreed with the appeal panel's decision and would pursue the case in the high court in India's commercial capital Mumbai.

"Bayer is committed to protecting its patents for Nexavar and will rigorously continue to defend our intellectual property rights within the Indian legal system," the company said in a statement.

It said one of the main barriers to access to medicines in developing countries such as India is the "lack of adequate healthcare services and infrastructure ensuring that drugs will effectively bring treatment to those who most need it."

Health groups welcomed the panel's ruling saying it would check the abuse of patents and open up access to affordable versions of patented medicines.

"The decision means that the way has been paved for compulsory licenses to be issued on other drugs, now patented in India and priced out of affordable reach, to be produced by generic companies and sold at a fraction of the price," said Leena Menghaney of medical humanitarian aid organization Medecins Sans Frontieres.

The decision might encourage Indian drug makers to explore the compulsory license route to manufacturing drugs that are critical in the treatment of HIV patients.

"We have started to switch people we treat for HIV who develop drug resistance on to newer medicines. But these are expensive, which means not everyone who needs the medicine can afford it," said Menghaney.

She said a World Health Organization-recommended drug such as Raltegravir costs nearly $1,800 per person per year, an unaffordable sum for most HIV patients in India.

"We are waiting to see if drug manufacturers will take up the challenge," Menghaney said.

Under World Trade Organization rules, governments have the right to issue compulsory licenses to overcome barriers to access to cheaper versions of a patented drug without the consent of the company that invented the drug.

Several Western pharmaceutical giants say India's 2005 Patent Act fails to guarantee the rights of investors who finance drug research and development.

Bayer said the patent panel's order weakens the international patent system and endangers pharmaceutical research.

"The limited period of marketing exclusivity made possible by patents ensures that the costs associated with the research and development of innovative medicines can be recovered," the company said.

Meanwhile, Swiss drug maker Novartis AG is awaiting a decision by India's Supreme Court on the rejection of patents for its cancer drug Gleevec. That case revolves around a different legal provision allowing India to block "evergreening" — extensions of patents based on minor changes to existing treatments.

The Supreme Court's ruling on the case is expected soon.


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Media Google-y eyed over glasses idea

Written By Unknown on Senin, 04 Maret 2013 | 18.38

If you've paid any attention to technology-related news recently, you might think that by the end of the year we'll all be like Tom Cruise in "Minority Report," sporting retina-scanning glasses with a gestural interface in the form of Google's Project Glass.

But what's lost in all the media fawning is that Google actually has produced something between a really cool virtual tour-guide and a hands-free smartphone. Not quite the augmented reality game-changer that is being portrayed. For now.

Google, or specifically co-founder Sergey Brin, has done a masterful job of marketing a fantasy, tapping into our collective craving for the next game-changing device. The company has not only driven its stock price to an all-time high, but also crowd-sourced the vision for whatever eventually becomes of Project Glass.

But the hype may have gotten out of hand recently. A few days ago, Brin was actually downplaying expectations: "It's by no means a done deal yet," he said, adding that we shouldn't trust purported prototypes that show up on eBay.

The interesting psychology of Google's strategy aside, the fact is that some sort of glasses will become available to some segment of consumers soon — for about $1,500. The few who have tested this device report that in a controlled environment for a short period of time under certain circumstances, Google's glasses can take videos and photos, forecast the weather, receive email and relay directions — provided there's a cellphone to connect with.

Though I'm as psyched as anyone to get my hands on these things, whatever they are, I predict that Google's glasses will compete directly with another product that requires a smartphone to work, and that it won't win. Apple's rumored iWatch will wear more discreetly, and it will be cheaper, too.

I predict the glasses will have the battery life of a first-generation smartphone and will be similar to Segways — the province of mall cops, group tours and the eccentric rich, but another novelty cast aside by the mainstream.

Even if Google fully achieves its vision, there's still the giant impediment of getting people comfortable with the idea of looking and sounding silly, talking to oversized bifocals as they walk.

But don't misunderstand: I'd love to get a pair. So Google ... if you're reading this ... can I expect my review glasses soon?


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The Ticker

What's up, online doc?

Rite Aid has expanded an online doctor service for its drugstore customers that is limited to virtual visits, but cheaper than a traditional primary care appointment.

The company, the nation's third-largest drugstore operator with 4,600 U.S. stores, said its NowClinic Online Care program is available at 58 locations in four cities: Baltimore, Boston, Philadelphia and Pittsburgh. Its rivals, Walgreen and CVS, also run in-store clinic programs. Walgreen operates more than 370 Take Care clinics, while CVS runs more than 600 MinuteClinics.

Rite Aid's service connects drugstore customers with doctors for a video or phone consultation about a range of ailments like allergies, bronchitis, rashes, the flu or sinus infections. Rite Aid officials say the concept aims to improve access to health care.

TODAY

  • At a community meeting in South Boston, developers discuss plans to demolish St. Augustine's Church and build a residential complex.
  • Men's Wearhouse reports quarterly financial earnings.

TOMORROW

  • The Harvard Allston Task Force meets at the Honan-Allston library branch.
  • The Institute for Supply Management Index releases its service sector index for February.

WEDNESDAY

  • Framingham office supplier Staples reports quarterly financial results.
  • The Federal Reserve releases the "Beige Book" report on regional economic conditions.

THURSDAY

  • The Greater Boston Chamber of Commerce hosts a government affairs forum featuring House Speaker Robert DeLeo, at Boston Park Plaza.
  • Massachusetts jobs figures for January and revised 2012 unemployment rate, labor force data and jobs estimates are released.
  • The Federal Reserve releases consumer credit data for January.

FRIDAY

  • U.S. Labor Department releases the unemployment report for February.
  • Rockland Trust has appointed Brian Slater to the bank's commercial lending team as vice president. Prior to joining the bank, Slater served as senior vice president and team leader at People's United Bank.
  • Blueprint Medicines of Cambridge has added Dr. David Schenkein, chief executive officer of Agios Pharmaceuticals, to its board of directors.

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Mustering a new tenant for Navy Yard landmark

The Muster House — an unusual, octagonal building that served as a worker assembly point at the Charlestown Navy Yard in the 1800s — will have a new leasehold owner for the first time in more than 15 years.

The owner of a building consulting firm in Cambridge is finalizing a deal and may relocate his business to the 31 Fifth St. property, which has been owned by the Boston Redevelopment Authority since a 1970s handover by the federal government.

"From a community point of view, it's always good to see an active user in that building," said Mark Rosenshein of the Charlestown Neighborhood Council. "It's a very small and unique space, so it takes a very unique user to make it work."

Though tiny at less than 2,900 square feet and well off the Hub office market's beaten path, the Muster House drew the likes of dot-com darling Jeff Taylor. The Monster founder picked the historic pad for his Eons startup, working solo there for the first few weeks.

"An entrepreneur starts in a very lonely place," Taylor told Bloomberg News in 2006. "It's when you think you have a great idea and everyone around you thinks you're crazy, and you act on it."

Built between 1852 and 1854, the four-story brick building is surrounded by a porch and topped by a clock tower. Shipyard workers mustered daily at the sign, receiving assignments and pay. The landmark is down the street from the USS Constitution's berth.

The next tenant may be Building Enclosure Associates, whose owner, Michael Velji, is close to finalizing a purchase of the lease from the Royalston Trust.

Velji was not available for comment, but an executive at the firm, Ed Mannix, said a deal may be done later this month.

The Royalston Trust was set up by the late Werner Bundschuh, a filmmaker and local real estate developer who acquired the Muster House lease at a foreclosure auction in 1997. At the time, the trust assumed a 65-year lease with the BRA, paying about $4,300 a year and taking responsibility for renovations and maintenance.

"We actually had quite a bit of interest," said Nancy Kueny, a broker at Gibson Sotheby's International Realty handling the lease sale for the trust. "It's probably one of the most interesting buildings in the Navy Yard."


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Evernote hacked: 50 million passwords reset

LONDON — Online note-taking service Evernote Corp. has been hacked and is resetting all its 50 million users' passwords as a precaution.

The Redwood City, California-based company said in a post published late Saturday that an attacker had been able to access sensitive customer information and that every user would have their account reset "in an abundance of caution." In a follow-up email sent Sunday, the company said it believed the attack "follows a similar pattern of the many high profile attacks on other internet-based companies that have taken place over the last several weeks" — an apparent reference of recent breaches at Facebook Inc., Twitter Inc., and Apple Inc.

However the company said the attack did not appear to be linked to Java, a commonly used computer programming language whose weaknesses have been used as springboards for other recent hacks.

Evernote said the attack, which it described as "sophisticated," was able to compromise an unspecified number of customers' encrypted passwords. Decoding such passwords can be difficult but possible.

The company said it has seen no evidence that any customer data had been tampered with or that any payment information had been compromised.


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Thousands march in Portugal to protest austerity

Written By Unknown on Minggu, 03 Maret 2013 | 18.38

LISBON, Portugal — Many thousands of demonstrators held marches in more than 20 cities in Portugal on Saturday to protest against government-imposed austerity measures aimed at lifting the ailing country out of recession.

Tens of thousands of people filled a Lisbon boulevard leading to the Finance Ministry carrying placards saying "Screw the troika, we want our lives back." The troika is a reference to the European Commission, the International Monetary Fund and the European Central Bank, the lenders behind the country's financial bailout.

Many protesters were singing a 40-year-old song linked to a 1974 popular uprising known as the Carnation Revolution. Some waved handkerchiefs in a symbolic gesture, saying goodbye to the government.

"If the government pays attention to what is happening and understands that the people are against them, they should get out," said Serafin Lobato, 65. "If not, this won't stop."

Portugal is expected to endure a third straight year of recession in 2013, with a 2 percent contraction. The overall jobless rate has grown to a record 17.6 percent.

The marches were powered mostly by young people. Unemployment among people under 25 is close to 40 percent.

The country's largest trade union, the General Confederation of Portuguese Workers, with some 600,000 members, also supported the marches and swelled numbers.

After several years of tax increases and welfare cuts, austerity is poised to deepen as the government looks for another €4 billion ($5.2 billion) to cut over the next two years, with the national health service, education, pensioners and government workers likely to be the hardest hit.

"There is no future without education, there is no future without culture," said student Ana Julia, 23. "We have to protest to get back what they are trying to take away from us."

The government is locked into debt-cutting measures in return for the €78 billion ($102 billion) financial rescue set up in 2011. More tax hikes this year sliced another chunk off wages.

___

Associated Press writer Harold Heckle in Madrid contributed to this report.


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AP: NY fracking held as Cuomo, RFK Jr. talk health

AP: NY fracking held as Cuomo, RFK Jr. talk health

ALBANY, N.Y. — New York Gov. Andrew Cuomo came as close as he ever has to approving fracking last month, laying out a limited drilling plan for as many as 40 gas wells before changing course to await the findings of a new study after discussions with environmentalist and former brother-in-law Robert F. Kennedy Jr., several people familiar with his thinking told The Associated Press.

The turning point, which could delay a decision for up to a year or longer, came in a series of phone calls with Kennedy. The two discussed a new health study on the hydraulic fracturing drilling method that could be thorough enough to trump all others in a debate that has split New York for five years.

"I think the issue suddenly got simple for him," Kennedy told the AP, then went on to paraphrase Cuomo in their discussions: "'If it's causing health problems, I really don't want it in New York state. And if it's not causing health problems, we should figure out a way we can do it.'"

Kennedy and two other people close to Cuomo, who spoke to the AP only on condition of anonymity because Cuomo is carefully guarding his discussions on the issue, confirmed the outlines of the plan the governor was considering to allow 10 to 40 test wells in economically depressed southern New York towns that want drilling and the jobs it promises. The plan would allow the wells to operate under intense monitoring by the state to see if fracking should continue or expand.

They all said it was the closest Cuomo has come in his two years in office to making a decision on whether to green-light drilling.

The state has had a moratorium on the process since 2008 while other states in the gas-rich Marcellus Shale formation, such as Pennsylvania, have seen local economies boom as drilling rigs have sprouted up.

Cuomo issued a brief statement Saturday through a spokesman saying that the state departments of environmental conservation and health are "in the process of making a determination with respect to the safety and health impacts of fracking.

"After, and only after, they conclude their work will the state's position be determined — it's that simple and it hasn't and doesn't change with any conversations," Cuomo spokesman Josh Vlasto said.

The governor continues to refuse to talk about his internal process and wouldn't comment directly for this story. He has been repeating the phrase he's used for two years, that "science, not politics" will rule.

Kennedy, brother of Cuomo's ex-wife, Kerry, described a governor who is intensely involved in the emotion-charged issue, which Cuomo privately likened to taking on the National Rifle Association over gun control laws. Kennedy said Cuomo reached out personally to many others as well in his evaluation.

Kennedy believes Cuomo held off in large part because of the prospect of a new $1 million study by the Geisinger Health System of Pennsylvania, billed by property owners seeking safe fracking and environmentalists as a "large-scale, scientifically rigorous assessment" of drilling in Pennsylvania.

The study will look at detailed health histories of hundreds of thousands of patients who live near wells and other facilities that are producing natural gas from the same Marcellus Shale formation that New York would tap.

Unlike most studies funded by advocates or opponents of hydrofracking, this study would be funded by the Sunbury, Pa.-based Degenstein Foundation, which is not seen as having an ideological bent.

"I think it will be pivotal," Kennedy said. Preliminary results are expected within the year, but there is no specific timetable and final results could be years off. Kennedy is opposed to fracking unless it can be proven to be safe for the environment and public. He said he's unsure what the Geisinger report will conclude.

The research and education arm of the Independent Petroleum Association of America cried foul at the private conversations of the powerful public figures.

"This is pretty outrageous, above and beyond the four-year charade that's already occurred," said Steve Everley of Energy in Depth. "The governor has insisted publicly that his review of hydraulic fracturing will be based on science, and yet he's actually making decisions about New York's future based on backroom conversations with a Kennedy.

"Maybe if Governor Cuomo had been as interested in speaking with other regulators as he was in speaking with his former brother-in-law, he would have recognized that shale development can be and is being done safely, and folks struggling to find work upstate might actually have jobs," Everley said.

Dan Fitzsimmons, leader of the Joint Landowners Coalition of New York, a pro-drilling group, said opposition to hydrofracking is based on politics, not science.

"Delay, delay delay, that's been the name of the game with these folks, and the sad thing about Cuomo is that he's allowing it," Fitzsimmons said. "How long are you going to throw away taxpayer dollars over politics?"

But Adrian Kuzminski, a fracking opponent with the group Sustainable Otsego, said he fears that the test wells Cuomo has been considering would be "a stalking horse" for more drilling.

"After a couple of years they're going to say 'Oh, we don't see any problems,'" Kuzminski said. "There's no need for test wells in New York state. The information is just out there."

Shortly after the conversations with Kennedy in early February, Cuomo's health commissioner, Dr. Nirav Shah, mentioned the Geisinger study among three health reviews still pending and which could enter into Cuomo's decision. Shah, a nationally respected public health figure, was an associate investigator at the Geisinger Center for Health Research before going to work for Cuomo.

Sandra Steingraber, a biologist and founder of New Yorkers Against Fracking, said Saturday, "As Health Commissioner Shah said, the right time to study fracking is before fracking begins. We expect that Governor Cuomo will listen to scientists and medical experts and let evidence dictate whether or not to lift our state's moratorium, and we further expect that he will wait for national studies and a real New York-specific study."

Cuomo, a popular Democrat who supporters say may run for president in 2016, is getting criticism from both sides over his delayed decision and calls for more studies. Landowners and industry say they're missing out on an economic boom while environmentalists say the administration should have ordered a full health study and has been too opaque about the regulatory process.

Some pundits have questioned whether Cuomo was "becoming Hamlet on the Shale," echoing a reference to criticism of his father, former Gov. Mario Cuomo, who spent politically damaging months as "Hamlet on the Hudson" publicly debating whether to run for president. It's a characterization Kennedy rejects.

Many federal and state regulators say hydraulic fracturing, which injects a mix of water and chemicals thousands of feet underground to crack open shale and release natural gas, is safe when done properly and thousands of sites have few complaints of pollution. But environmental groups and some doctors say regulations still aren't stringent enough and the practice can pollute ground water. The Marcellus Shale lies under parts of New York, Pennsylvania, Ohio and West Virginia.

"What's interesting is Andrew is trying to figure this out," Kennedy said. "It's interesting to see this ... that usually doesn't happen. (Most governors) take a poll, or they take industry money and just do it ... but I think this is the harder route."

___

Associated Press Writer Karen Matthews contributed to this report from New York City.


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Boston’s Pongr gains Sightec

A new technology deal inked with Israeli startup Sightec has Hub-based 
Pongr thinking about the big picture.

The mobile photo marketing company said its "significant" acquisition of Sightec's super-resolution software will help Pongr pinpoint harder-to-find brands and products in photos consumers take across social networks, thereby offering advertisers more marketing opportunities.

"We think we've gotten really good at how to do direct response photo marketing for brands. This is about scaling it up and doing it through these other networks," Pongr CEO Jamie Thompson, 32, told the Herald. "We needed some robust technology in order to do that."

Thompson said Sightec's technology can improve image quality 10 times over typical image enhancement results, and detect people and objects within pictures regardless of whether they are in the foreground or background.

"If it's a birthday party, and you take a picture of your wife or loved one celebrating their birthday and there happens to be Mountain Dew on the table, we want to know that Mountain Dew is part of that birthday celebration," he said. "It's very, very hard to analyze billions and billions of photos looking for items, or objects, or things, or people that might be of interest to advertisers because consumers may not necessarily be tagging them."

Founded in 2008, Pongr asks consumers to use their mobile phone cameras to snap shots of outdoor billboards, bus stop advertisements, products and magazine pages in return for rewards that are messaged back to their phones. The company has previously done major promotional campaigns with brands like Pepsi, Mountain Dew and Frito-Lay.

The company will keep Sightec's scientific team in Tel Aviv for now, with plans to add more scientists and engineers in the Israeli city as part of the "all-stock deal," Thompson said.

Thompson added that Sightec's technology, when applied to the Pongr platform, has greater ability to match mobile and desktop ads with the contextual relevance of photos consumers take with their mobile devices and share across networks such as Facebook, Twitter, Instagram, Pinterest and Tumblr.

"As we stand now on the tip of the iceberg of a new era of user-generated visual content, we think visual content needs to be matched up better to how the Internet is monetized," he said. "If advertisers can't take advantage of this content, then the money they spend on ads is not as relevant as it could be."


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Burlington's apples shine

Burlington High School, which gives every student an iPad to keep until graduation, has become a poster child for tech giant Apple.

The company will present staff and students with the Apple Distinguished School award on March 13 and laud the school's efforts to transform classroom learning through the company's technology on its website.

"It's nice for the staff and students to be recognized," Principal Mark Sullivan said yesterday. "This is our second full year using the iPad, and I think the biggest measure of success is that it's helped our kids become more creative and engaged in their classrooms."

Using different apps, students in psychology class, for example, are able to see a 3-D image showing each part of the human brain on their iPads, while students in anatomy class are able to see an image of a cat's anatomy. Teachers post homework on their blogs, and students, who have the option of buying the iPad at market price when they graduate, are able to compile curated portfolios of their writing or artwork that they can present to colleges or to employers in the future.

Dylan Smith, a 16-year-old junior, writes papers on his iPad, while Adriana Berardi, one of his classmates, takes notes on it.

"There is game-playing, but people are pretty disciplined with them," Smith said. "I honestly thought a lot of the teachers would not know how to use them, but it's worked out."

To help anyone who has a problem, the high school has designated its own version of Apple's "Genius Bar," staffed by a teacher and a handful of students each period, as part of a course for which they earn credit.

In all, more than 2,000 Burlington students have iPads at their disposal. In addition to high schoolers, there's one for every student in grades six through eight at Marshall Simonds Middle School; one first grade class in each of the town's four elementary schools; and every fourth and fifth grader at Pine Glen Elementary School, said Assistant Superintendent Patrick Larkin.

Even though elementary and middle school students can't take the devices home, the virtual blackboards are helping first-graders spell out words and increase their journal writing output, Larkin said, while older students are becoming better organized through apps like Explain Everything, Evernote and Genius Scan.

"We're supposed to be preparation for the real world, so what's going on in here should look like the real world," Larkin said. "We're getting our kids comfortable with resources they can use, no matter what device they're on. That's been a big focus for us."

Burlington schools pay for the iPads over a three-year period through an Apple equity lease program, he said, and their goal is to have one for every student in the district within two years. To date, Apple has sold more than 4.5 million iPads to U.S. schools.

Students are currently using the iPad 2, but school officials may invest in updated IPad models or iPad Mini, Larkin said.

"The thing we need to be clear on is we do have to monitor kids' screen time when they have their face in a device," Larkin said, adding the school district holds monthly "parent technology nights" to address any concerns parents may have over excessive technology use. "Obviously we still want to teach the social skills we've always taught."


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