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Apr 26, 2013

Bangladeshis Burn Factories to Protest Unsafe Conditions: The New York Times I Global Update April 26, 2013:

The New York Times International Herald Tribune
April 26, 2013
Compiled 21:00 GMT

Global Update


Bangladeshis Burn Factories to Protest Unsafe Conditions

The protests came as rescue teams spent a third day searching for survivors in the rubble of a building that collapsed in a suburb of the capital, killing more than 300.

U.S. Not Rushing to Act on Signs Syria Used Chemical Arms

The White House said it would seek further information about the use of chemical weapons in Syria before deciding whether President Obama's "red line" had been crossed.

Europe's Small Businesses Continue to Struggle

The companies that provide most of the jobs on the Continent are having trouble winning customers and getting bank loans, a survey by the European Central Bank found.

Photographs: Death Toll Rises After Building Collapse in Bangladesh

Rescuers continue to find survivors of one of the country's deadliest disasters.


When Movie Money Talks

The inane meddling by China's censors only pushes down the quality of the country's commercial films.

British Leader Says Evidence of Chemical Warfare in Syria Is Limited but Growing

Prime Minister David Cameron, speaking on a BBC show, echoed the caution of the Obama administration and ruled out direct British military intervention.

Syria Claims Disruption of a Rebel Supply Line

The government in Damascus claimed to have overrun a bitterly contested town east of Damascus, but rebels disputed these assertions.

38 Killed in Fire at Russian Psychiatric Hospital

Most of the victims were patients who died in their beds as firefighters made the hourlong journey from the nearest station, safety officials said.
Common Sense

Netflix Looks Back on Its Near-Death Spiral

Reed Hastings, the video streaming giant's chief executive, offered a rare public comment on his company's 2011 Qwikster debacle, which nearly destroyed it, and its improbable rebound.

Dutch Man Said to Be Arrested in Powerful Internet Attack

The man, identified as "S.K." by Dutch officials, is said to be Sven Kamphuis, spokesman of a group protesting the work of a spam-fighting organization.

U.S. Economy Speeds Up, but Less Than Forecast

A growth rate of 2.5 percent in the first quarter was most likely because of unusually slow growth at the end of 2012, when the economy grew at an annual pace of just 0.4 percent.

Underground Cellphone Service Expands, but Some Call for Quiet

Gov. Andrew M. Cuomo announced that 30 more subway stations in Manhattan would have cellphone service, but some riders were displeased about hearing calls on trains.
Bits Blog

Looking at Facebook's Friend and Relationship Status Through Big Data

Wolfram Alpha, a computational search engine, released a slew of fascinating data about Facebook users, including the age of friends, relationship status, and how these change based on age and geographical locations.

His Service Nearly Complete, Yahoo Chairman Steps Down

Alfred J. Amoroso, the chairman of Yahoo, who said he would serve in the position for a year when he took the job last May, is keeping his word.

Chak de Goal! A New Wave of Hockey Fans

A Punjabi show has married Canada's national pastime with the sounds of the Indian subcontinent, providing a glimpse into the changing face of hockey.

Munster Is Primed for Clermont

The Irish team has won eight Heineken quarter and semifinals on the road -- most recently earlier this month, when it ejected Harlequins, the English champion, from the tournament.

Mystery Looms Large at the Draft, and So Do the Top Few Picks

The 2013 draft class spent months being picked apart as one of the least impressive in years, but the relative lack of conviction about the prospects also produced an unusual amount of suspense.

Teaching the Lessons Learned in War, to Thwart Attackers at Home

A military school in the Florida Panhandle is training technicians to thwart makeshift bombs like the ones used in the Boston Marathon attack.

Boston Bombing Suspect Is Moved to Medical Detention Center

Dzhokhar Tsarnaev, who is charged in the Boston Marathon explosions, was transferred to a locked medical facility for male prisoners.

Victims in Boston Face a Difficult Path to Recovery

Many of the over 260 people injured in the Boston Marathon bombings suffered complex wounds that will require several more operations.
Op-Ed Contributor

The Market Shall Set North Korea Free

A defector who was a psychological warfare officer for the North says the market will transform the country from the bottom up.
Op-Ed Columnist

The 1 Percent's Solution

While the austerity doctrine seems to have imploded, austerity has strengthened its grip on elite opinion. Why?
Op-Ed Columnist

Health Chaos Ahead

The implementation of Obamacare is off to a rough start. Even the law's fervent supporters admit that things are going worse than expected.

U.S. stocks end lower; H-P, Chevron boost Dow: MarketWatch I Wall Street at Close Report April 26, 2013.

By Polya Lesova, MarketWatch 
NEW YORK (MarketWatch)U.S. stocks ended mostly lower on Friday after a report showed the economy expanded at a slower pace than expected in the first quarter and a gauge of consumer sentiment fell in April. 

However, gains for Hewlett-Packard Co. and Chevron Corp. helped the Dow Jones Industrial Average finish in positive territory. 

The S&P 500 index SPX -0.18%  fell 2.92 points, or 0.2%, to end at 1,582.24 after hitting an intraday low of 1,577.56. The benchmark snapped a five-session winning streak Friday, but it posted weekly gains of 1.7%. 

The technology and consumer staples sectors were the only gainers among the S&P 500’s 10 major industry groups, while materials was the worst performing sector. See: 14 cheap dividend stocks for a cheap market.

The technology-heavy Nasdaq Composite COMP -0.33%  dropped 10.72 points, or 0.3%, to end at 3,279.26, leaving it up 2.3% for the week. 

“What’s happening today is a little bit of jitters on the economic front and a little bit of jitters on the earnings front,” said Adam Sarhan, chief executive of Sarhan Capital. Investors are also growing more concerned over a steeper-than-expected downturn in Europe, he said. 

More than 681 million shares traded on the New York Stock Exchange. Composite volume topped 3.1 billion. 

The Dow Jones Industrial Average DJIA +0.08% rose 11.75 points, or 0.1%, to end at 14,712.55, leaving it up 1.1% for the week. 

Hewlett-Packard Co. HPQ +1.94%  rose 1.9%, leading gainers in the 30-stock blue-chip index.
Chevron Corp. CVX +1.29%  was another gainer in the Dow, rising 1.3%. The oil major said its first-quarter earnings fell to $6.2 billion, or $3.18 per share, from $6.5 billion, or $3.27 a share, in the same period a year ago, but the results still exceeded analyst expectations. 

Alcoa Inc. AA -1.43%  and United Technologies Corp. UTX -1.04%  were the biggest decliners in the Dow, dropping 1.4% and 1%, respectively. 

Week ahead: Fed, jobs, Facebook
The Federal Reserve’s meeting on monetary policy, March employment data and Facebook’s earnings will keep investors and traders on their toes next week. 

The Commerce Department said before the opening bell that gross domestic product grew at a 2.5% pace in the first three months of 2013, up from 0.4% in the fourth quarter. Economists surveyed by MarketWatch had forecast GDP growth of 3.2%. See: Breaking down the GDP report in charts.
“The disappointment will push back expectations of when the Fed will start to withdraw its stimulus, especially as recent data suggest the rate of growth could weaken again in the second quarter,” said Chris Williamson, chief economist at Markit, referring to the Federal Reserve’s bond-buying program, which is aimed at boosting economic growth and lowering unemployment. The Federal Open Market Committee is due to hold a meeting on monetary policy on Tuesday and Wednesday, and it’s expected to keep its bond buying unchanged at $85 billion a month. 

GDP comes in below expectations
Brendan Conway discusses the disappointing results in the first-quarter GDP. Photo: Getty 

Shortly after Friday’s opening bell, the University of Michigan-Thomson Reuters consumer-sentiment gauge fell to a final April reading of 76.4, the lowest since January, from a final March reading of 78.6. Economists had expected it to be even lower. 

Gains for Apple Inc. helped the S&P 500 pare losses in late trading. Shares of the iPhone maker AAPL +2.16%  rallied 2.2%, leaving it up 6.8% for the week. The company has a large weighting in the S&P 500 and therefore its moves have a big impact on the index. This week, Apple reported first-quarter earnings above expectations and said it was raising its dividend and adding $50 billion to its share-buyback program. 

Among other individual stock moves, PerkinElmer Inc. PKI -11.95%  was the top decliner in the S&P 500, sinking 12% after the maker of health-testing equipment lowered its full-year outlook.
Expedia Inc. shares EXPE -9.87%  slumped nearly 10% after the online travel site said its first-quarter loss widened. Read about Expedia and other stocks making big moves in Friday trading. 

George Soros takes a 7.9% stake in J.C. Penney, boosting the retailer’s shares.
Shares of Inc. AMZN -7.24%  fell 7.2% as the e-commerce group said late Thursday it may report a second-quarter operating loss. 

J.C. Penney Co. JCP +0.06%  rallied nearly 12%, making it the top gainer in the S&P 500 after hedge-fund investor George Soros reported a 7.9% stake in the struggling retailer. 

D.R. Horton Inc. DHI +8.68%  shares jumped nearly 9% after the company posted a surge in fiscal second-quarter profit and a 34% rise in orders. 

Sarhan Capital’s Sarhan noted that 70% of companies that have reported so far have beaten expectations, and earnings are on track to come in 1.1% lower versus the first quarter of 2012. 

“If that happens, it’ll be the first annual decline on a year-on-year basis since 2009,” he said. 

Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.

DealBook P.M. Edition April 26, 2013: Week in Review: High-Value Domestic Dispute. Home |Business Day| Video The New York Times

Friday, April 26, 2013
Week in Review: High-Value Domestic Dispute Millionaires clash over socialite's child support claims. | Businesses take a wary approach to disclosures using social media. | Market delay in Chicago points again to technology. | Down payment rules are at heart of mortgage debate. | Hazy future for S.E.C. whistle-blower effort. | Regulators to restrict payday lending. | Fed still owes Congress a blueprint on its emergency lending. | Co-directors for S.E.C. signal shift. | And Andrew Ross Sorkin says that in a tax fight, Amazon handed the baton to eBay.
For the latest updates, go to »

A look back on our reporting of the past week's highs and lows in finance.
Mergers & Acquisitions
Soros Buys a 7.9% Stake in J.C. Penney The billionaire hedge fund manager George Soros disclosed a 7.9 percent stake in the embattled retailer.
Deal Professor: Flawed Bidding Process Leaves Dell at a Loss Steven M. Davidoff says that the use of the go-shop process left shareholders with a hollow choice after the Blackstone Group withdrew from bidding.
Investment Banking
Businesses Take a Cautious Approach to Disclosures Using Social Media This earnings season, some prominent companies are taking advantage of the S.E.C.'s new rules that allow the use of social media to disclose financial information, though others are proceeding slowly.
Market Delay in Chicago Points Again to Technology The Chicago Board Options Exchange opened after a delay of several hours because of a system failure.
Barclays and Credit Suisse Post Strong Earnings in Investment Banks A strong performance comes despite a push by European politicians to limit firms' exposure to financial risks and to promote lending to local economies.
Private Equity
Bacchus Capital Management has invested $2 million to $7 million stakes in more than half a dozen West Coast wineries.
Boutique Vintners Turn to Private Equity for Help Bacchus Capital Management, co-founded by Sam Bronfman II, is providing financing and expertise to small winemakers.
Hedge Funds
Millionaires Clash Over Socialite's Child Support Claims A Wall Street financier claims that his former lover's current partner helped her hide her true wealth before a Hong Kong court proceeding.
New York Seeks to Press Trial of A.I.G.'s Ex-Chief The New York attorney general's office is taking an unusual step to try to help expedite a trial of the American International Group's former chief, Maurice R. Greenberg.
Construction in California. Large down payments, proponents say, reduce the risk that mortgage loans will default.
Size of Down Payments at Heart of Mortgage Debate Many lawmakers, lenders and consumer advocates are now cautioning against rules that would require many borrowers to make large down payments.
Capital One Settles Accusations It Understated Loan Losses Federal regulators accused Capital One and two of its executives of low-balling millions of dollars in auto loan losses suffered during the financial crisis.
Hazy Future for S.E.C.'s Blossoming Whistle-Blower Effort The Securities and Exchange Commission's program is at a crossroads as some Wall Street firms make it difficult for employees to talk and lawyers criticize it for slow responses.
Regulators to Restrict Big Banks' Payday Lending Federal regulators are expected to crack down on short-term, high-cost credit offered by large banks like Wells Fargo and U.S. Bank.
Jon Corzine, former chairman and chief executive of MF Global.
MF Global's Trustee Sues Firm's 3 Top Executives A bankruptcy trustee has sued Jon S. Corzine and other former MF Global executives, claiming they were "grossly negligent" in the lead-up to the brokerage firm's collapse.
Co-Directors for S.E.C. Signal Shift Mary Jo White, the new chairwoman of the agency, is putting together her team, including one of her longtime lieutenants.
Fed Still Owes Congress a Blueprint on Its Emergency Lending Dodd-Frank, passed in 2010, required the Fed to develop policies and procedures to safeguard taxpayers when making emergency loans "as soon as is practicable."
Andrew Ross Sorkin.
DealBook Column: In Tax Fight, Amazon Hands Baton to eBay Andrew Ross Sorkin says that eBay has taken up the fight against forcing Internet retailers to collect state sales tax wherever they ship, just as the issue is moving through Washington in earnest.
S.&P. Urges Judge to Dismiss Civil Case Standard & Poor's urged the dismissal of federal civil accusations that it inflated its credit ratings to win business during the boom in mortgage investments.
Ralph Lauren at New York Fashion Week. The designer's company agreed to pay $1.6 million to resolve a foreign bribery case.
Ralph Lauren Pays $1.6 Million to Resolve Bribery Case The clothing retailer Ralph Lauren faced criminal and civil charges of violating a federal law against making illegal payments to foreign officials, the latest case highlighting a crackdown on overseas bribery by American companies.
New Leader for Enforcement Unit at S.E.C. Mary Jo White named Andrew J. Ceresney, her longtime lieutenant in corporate law and the prosecutor's office, as co-head of the S.E.C.'s enforcement unit.
For the latest updates, go to »

Galleon Group Co-Founder Surfaces on Horseback Gary Rosenbach, the co-founder and longtime No. 2 to Raj Rajaratnam at the Galleon Group, has surfaced in Texas as an accomplished amateur "cutter," a sport in which horseback riders separate one calf from the cattle herd.
A Wrinkle in the Workplace Low morale at banks and other financial institutions in London is leading some employees to behave at work as if they were still at home wearing pajamas, according to a business coach.
Lazard's Profit Falls 17% in First Quarter The investment bank said that its adjusted profit slid 17 percent from the same time a year ago, to $37 million, as fewer of its advisory assignments closed during the period.
Commerzbank Loses Appeal on Paying $68 Million in Banker Bonuses The German firm Commerzbank must pay 52 million euros ($68 million) in bonuses to 104 bankers after it failed on Friday in its appeal to overturn a court ruling in London.
The Seductive Simplicity of a New Banking Bill Senators Sherrod Brown, Democrat of Ohio, and David Vitter, Republican of Louisiana, want not only to toughen the overhaul of the financial system, but also to simplify it.
Private Equity Firms Sell Stake in Ziggo for $1.1 Billion Cinven and Warburg Pincus are selling their remaining stakes in the Dutch cable company Ziggo for up to a combined 880 million euros, or $1.1 billion.
A.D.M. in $3.1 Billion Australian Takeover After its third attempt, Archer Daniels Midland finally won the support of the board of Australia's GrainCorp with a sweetened buyout bid that includes cash and an additional dividend payout.
Breakingviews: Nomura's Profit Gains Closely Tied to Japan's Economic Success Peter Thal Larsen says that Nomura reported its best full-year results since 2007. But much of those gains relied on better performance domestically, which make it very dependent on the success of Japan's economic policies.
Another View: Should Smaller Banks Really Have Less Capital Protections? Richard E. Farley says that a new proposal by Senators Brown and Vitter is an unprecedented attempt to unfairly advantage smaller "regional banks" and disadvantage bigger "megabanks."
DealBook Video
Week in Verse: 'Wrong's What I Do Best' R.I.P. George Jones. Your fans always admired you even if your wives didn't.