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Confusion over Twitter amplifies Tweeter stock

Written By Unknown on Sabtu, 05 Oktober 2013 | 16.30

A rush to get on the Twitter IPO bandwagon could be responsible for yesterday's massive stock price jump for Tweeter Home Entertainment Group, or could have just been a savvy investment move.

Tweeter, the Canton-based electronics retailer that filed for bankruptcy in 2007 and trades under the symbol TWTRQ, saw its stock shoot up by 
1,400 percent at one point yesterday, possibly due to confusion from investors looking to get a jump on shares of Twitter, which shared details of its highly anticipated IPO on Thursday, as well as its proposed stock symbol, TWTR.

Shares of Tweeter, which started the day at 1 cent each, hit 15 cents a share, but trading was eventually halted by the Financial Industry Regulatory Authority, citing a misunderstanding related to the "possible initial public offering of an unrelated security."

"Somebody probably got confused ahead of the Twitter IPO and either misspelled the name of the company or mistyped the ticker by adding a Q at the end," Larry Peruzzi, senior equity trader at Cabrerra Capital Markets in Boston told Bloomberg.

More than 14.3 million shares of Tweeter changed hands yesterday, the most since 2007.

Still, Max Wolff, senior analyst and chief economist for ZT Wealth, said the momentum could have started with one savvy investor.

"There might be people who aren't necessarily idiots who decided they could implement a very cheap and easy strategy" by counting on more confusion when real Twitter shares begin to sell, he said. Those savvy investors would then make a tidy profit if confusion leads to higher — if mistaken— demand for Tweeter. "This is actually not a bad strategy," he said.


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The Ticker

Markets gain as shutdown continues

Stocks moved higher on Wall Street yesterday, but investors remained focused on Washington, where a partial government shutdown and a fast approaching deadline on the nation's borrowing limit have weighed on markets all week.

The Dow Jones industrial average rose 76.10 points, or 0.5 percent, to 15,072.58 and the Standard & Poor's 500 index gained 11.84 points, or 0.7 percent, to 1,690.50. The Nasdaq composite index rose 33.41, or 0.9 percent, to 3,807.75.

Mass. Gaming Commission gets 
final slots applications

The state Gaming Commission received final slots applications yesterday from Cordish Cos., which has proposed a slots parlor in Leominster; Penn National Gaming, which hopes to add slot machines at the Plainridge harness racetrack in Plainville; and Raynham Park.

The five-member commission is scheduled to hear 90-minute presentations from each of the companies Monday. They are competing for the state's sole slots parlor license. All three passed an extensive background check conducted by the commission, and reached agreements with officials in their host communities that were later approved by voters.

The commission hopes to award the slots-only license in late December or early January.

NSA trying to crack Web privacy tool

The National Security Agency has been trying to crack the online anonymity provided by Tor, a U.S.-funded Internet tool designed to keep Internet activity private and said to be widely used by dissidents in oppressive countries, as well as by terrorists, according to the latest secret intelligence documents drawn from the cache leaked by Edward Snowden and published by the UK's Guardian newspaper.

The NSA hasn't been able to crack Tor outright, but through various means it's been able to "de-anonymize a very small fraction of Tor users," says an internal NSA document quoted by the Guardian.

THE SHUFFLE

  • Coldwell Banker Residential Brokerage in New England announced that Wendy Wagenbach, left, has been appointed field training manager. In this position, Wagenbach will have oversight of Coldwell Banker Residential Brokerage's education and career development department.
  • BlumShapiro, a regional accounting, tax and business consulting firm, announced the addition of Kimberley Train as a partner in the firm's litigation services and business valuation group. Train will operate out of BlumShapiro's Boston and Quincy offices.

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State reopens oyster beds hit by bacteria

Oyster farming will resume in certain parts of southern Massachusetts today after the state reopened oyster beds that had been closed because of high levels of bacteria.

"It means everything," said Paul Hagan of Duxbury, the farm manager for Boston-based Pangea Shellfish. "Right now, I'm sitting in the middle of Duxbury Bay with my crew and we're just switching gears totally. ... We get to go back to business."

Hagan got a call out of the blue yesterday afternoon announcing the ban was lifted after about a month of uncertainty over how long oystering would be off-limits.

"They've kept us in the dark with this whole process since the day we got shut down," said Hagan. "It was frustrating, but at the same time there was nothing we could do about it. You just have to abide by the rules."

The reopened beds are in Duxbury, Edgartown, Kingston, Marshfield and Plymouth. They were closed in late August after state officials linked oysters in those locations to cases of Vibrio — a bacterial pathogen that causes cramps, nausea and "watery diarrhea," according to a press release from the state Department of Public Health.

State officials decided to reopen the beds after no new human cases were reported and after water temperatures began to cool, making it harder for the bacteria to develop.


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The Ticker

Written By Unknown on Jumat, 04 Oktober 2013 | 16.30

Hacking group members indicted

A federal grand jury yesterday indicted 13 members of the Internet hacking group Anonymous for allegedly carrying out cyber-attacks worldwide, including against targets that refused to process payments for WikiLeaks, the anti-secrecy website founded by Julian Assange.

The U.S.-based members of Anonymous are accused of zeroing in on the computers of governments, trade associations, law firms, financial institutions and other institutions that oppose the philosophy of Anonymous to make all information free for everyone, regardless of copyright laws or national security considerations.

Twitter's IPO reveals it's losing money

Twitter revealed its confidential IPO filing yesterday, clearing the way for one of largest and most hyped IPOs since Facebook.

The filing reveals that the company is still growing, but is losing money. Twitter's revenue was $253.6 million in the first half of this year, up from $122.4 million in the year-ago period. However, the company had a net loss of $69.3 million in the first half, compared to a net loss of $49.1 million in the year-ago period.

Instagram to start sponsored ads

Instagram has decided to flick on its revenue engine, announcing plans to bring sponsored images and videos into the mix.

Facebook's popular app was widely expected to make the move to launch advertisements. The company plans to launch these sponsored images and videos in the coming months.

Data of 3 million Adobe Systems customers accessed by hackers

Adobe Systems said yesterday that hackers had accessed personal data for nearly 3 million of its customers.

Brad Arkin, Adobe's chief security officer, wrote in a blog post that the hackers had removed data including encrypted credit- and debit-card numbers, but that the company does not believe any decrypted numbers were taken.

The Shuffle

 Kristen Zemeitus, left, has joined the 451 Marketing consumer public relations team as account executive. Zemeitus brings seven years of public relations experience in the food, pet, fashion apparel, footwear and sporting equipment industries.

 J. Barrett & Company announced that Realtor Ann-Marie Ciaraldi has joined the agency in its Beverly Farms office. Ciaraldi's business background includes owning her own marketing company for three years.


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Market Basket workers to protest

Market Basket employees will converge at the Waltham site of a stalled store Sunday for a protest against the grocery chain's board.

"The point of the rally is to bring attention to the board and the damage they're causing," said organizer Cindy Whelan, store manager at the Market Basket in Epping, N.H.

A June election left majority power with "A" shareholders led by Arthur S. Demoulas, a cousin of CEO Arthur T. Demoulas, whom they're trying to oust. The board's failure to make payments has put on hold stores in Waltham, Revere and Plymouth, said Scott Lang, the developer's attorney.

A board spokeswoman did not respond to Herald inquiries.


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These top-notch Hub homes will have you salivating

Just won the lottery and want to splurge on a new dream home? Here's a few of 
Boston's luxurious offerings.

The Mandarin, 776 Boylston St

Unit W12B, $13,500,000

This 5,000-square-foot home is on the 12th floor of the Mandarin Oriental building. With multiple terraces, you'll be able to sip your morning coffee or evening glass of wine outdoors while gazing at the expansive Charles River views. The interior includes three bedrooms, 2A bathrooms, an expansive living area complete with fireplace, and exquisitely finished with limestone and walnut hardwood flooring. There are two master suites as well as a separate study and media room. Are you a collector of vintage wines? Not to worry. There is an abundance of built-in wine storage and a commercial-grade kitchen with separate butler's pantry for all of your entertaining needs. With extensive storage included in the unit, two additional storage spaces will hold any extra pieces of fine art you might have. The two full garage parking spaces complete this dream residence.

This home is being offered exclusively by Megan Kopman of 
Campion and Company Fine Homes and Real 
Estate, who can be reached at MKopman
@campionre.com.

259 Marlborough St.

Unit 7, $5,500,000

Do you enjoy stepping out of your front door onto a brick sidewalk shaded by an ever-changing landscape of trees? Then this meticulously renovated penthouse duplex on the sunny side of Marlborough Street might just be for you. With a complete custom renovation this year, this home is ready for your personal belongings. The 3,310 square feet of living space includes three bedrooms and 3A bathrooms as well as one direct-access deeded parking space and a private elevator that services both levels of the unit. With an open-concept floor plan you'll have access to not only a 400-square-foot mahogany terrace complete with exceptional Back Bay skyline views, but also an additional 1,200-square-foot private roof deck with additional views of the Charles River. This wonderful home is complete with a cedar-lined walk-in closet, gas fireplace, custom built-ins, wet-bar and wine fridge.

This home is being offered by Kevin Caulfield of Coldwell Banker Residential 
Brokerage, who can be reached at Kevin.Caulfield@nemoves.com.

130 Commonwealth Ave.

$13,900,000

If you're really the entertaining type, then you're in for a treat with this magnificent home, which is one of the finest luxury offerings available in the city. Situated on one of the Back Bay's most desirable streets, the exterior of 130 Commonwealth Ave. evokes the timeless elegance of 18th century Parisian architecture. Part of the famed "Commonwealth Sisters," this single-family behemoth has 9,908 square feet of living space as well as five bedrooms, six full bathrooms, two half-bathrooms and six (yes six), parking spaces. This true mansion in the heart of Boston also boasts five fireplaces, a 2,000-bottle wine cellar, a private elevator and a magnificent chef's kitchen. The finish work in this home was executed flawlessly in recent renovations by a skilled architect and artisans whose attention to detail is absolutely stunning.

This home is being offered by William Montero of 
Gibson Sotheby's International Realty, who can be reached at William.montero@sothebysrealty.com.


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Suspended: Drug trials, public health initiatives

Written By Unknown on Kamis, 03 Oktober 2013 | 16.30

Each week that the tug-of-war on Capitol Hill continues, the National Institutes of Health will turn away about 200 patients, including children with cancer, from its clinical research center, while local clinical trials remain on hold.

"The longer time goes on, the more deleterious the impact will be on the research community and patients," said Dr. Anne Klibanski, chief academic officer at Partners Healthcare.

Trials that have received funding but need drug approvals could be delayed because the Food and Drug Administration effectively has been shut down.

"I feel terrible. I wanted to get this going," said Leo Finn, 48, a Buzzards Bay father of three who found out Tuesday that the clinical test of the drug his doctor had hoped might cure his liver cancer was on hold. "I want to see my kids graduate, and I want to walk my daughter down the aisle."

The shutdown impact could prevent the Centers for Disease Control from monitoring the spread of the flu this year, "something that all hospitals look to as an early warning sign," said John Erwin of the Conference of Boston Teaching Hospitals.

The Boston Public Health Commission could lose grants for homelessness, violence-prevention and HIV/AIDS programs

"Our public health commission spends about $41,000 a day in federal grants," Mayor Thomas M. Menino said. "If they cease coming, we won't be able to serve the people we have in the city of Boston who need health care the most."

Jordan Graham and the Cape Cod Times contributed to this report.


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Developer bags prime parcel

Construction will begin as early as next week on a 12-story apartment and retail building — including a possible supermarket — on Canal Street just a block from the TD Garden in a deal announced yesterday between developers and the state transportation department.

"It's just a premier location and the views you get up at the building looking down at the Greenway and the harbor is incredible," Trinity Financial Vice President Abby Goldenfarb said. "Five or six years ago, we were taking a chance on the location, but now it's really proven itself to be a great place to live."

Trinity will construct 310 apartments, 147 parking spaces and ground-floor retail at One Canal Street — three mostly empty grassy parcels owned by MassDOT and the MBTA across the street from the Haymarket bus station and the Government Center garage.

Trinity will pay $13 million up-front to the state for the 99-year ground lease. Denver-based Aimco, a real estate investment trust, will pay property taxes on the site.

The 22,000 square feet of retail space will be designated for a supermarket under an agreement with the city, but can be opened up to other retail tenants after 18 months, or if another supermarket opens nearby — such as at the TD Garden, where developers envision both a supermarket and a cinema.

"We understand the community really wants a supermarket in the neighborhood and the Boston Garden site is the preferred site," Goldenfarb said. "But nonetheless, if a supermarket wants to be here, we are obligated to market it to a supermarket for a set period of time."

Construction of the $190 million project could begin within days and will last about 27 months. Several other high-profile projects are slated for the area, including three high-rises with residences, hotels, offices and shops near the site of the old Boston Garden.

Across the street from One Canal Street, developers want to resuscitate the Government Center Garage project with apartments, offices, shops and a hotel.

The project will also replace the Grand Canal's large outdoor patio, which had been part of a temporary lease with the MBTA.

It's been a long process. Trinity originally was the second choice to develop the state-owned sites back in 2005. After the original developer was taken off the project in 2010, MassDot awarded it to Trinity in the $13 million deal, MassDOT spokeswoman Cyndi Roy said.


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Bill filed to greenlight $1B convention center expansion

Lawmakers may soon decide whether to launch a 
$1 billion expansion of the Boston Convention & Exhibition Center — a project that would add 1.3 million square feet of space, including additional exhibit and meeting areas and another, larger ballroom.

"My goal is to have it dealt with this calendar year," said Massachusetts Convention Center Authority Executive Director James Rooney. "We have a number of events we'd like to be able to talk to for future years. The industry knows Boston is considering this."

The MCCA filed the expansion bill yesterday and said the project would not require "new fees or taxes." Funding would come from the Convention Center Fund, consisting of tourism-related fees and taxes.

The expansion would increase convention center floor space from 416,000 to 850,000 square feet — making Boston 14th in the country, up from its current 25th rank, Rooney said.

Expansion could draw larger medical and life sciences conventions and re-attract events like BIO that are now too big, he said.

Convention center officials also want to lure two hotels to Massport land across the street, adding 1,200 to 1,500 more rooms — a must, if the center expands, Rooney said.

Two smaller hotels with a combined 510 rooms on 
D Street are expected to open in late 2015, and the Westin Boston Waterfront may also expand.

Rooney downplayed any impact the expansion may have on residential South Boston. Both state Sen. Linda Dorcena-Forry and state Rep. Nick Collins co-sponsored the expansion bill.

"The convention development has served as a transition zone for the neighborhood between all the commercial and residential and retail development that's taken place," Rooney said.


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What's changing, what's not, in a shutdown

Written By Unknown on Selasa, 01 Oktober 2013 | 16.30

WASHINGTON — Campers in national parks are to pull up stakes and leave, some veterans waiting to have disability benefits approved will have to cool their heels even longer, many routine food inspections will be suspended and panda-cams will go dark at the shuttered National Zoo.

Those are among the immediate effects when parts of the government shut Tuesday because of the budget impasse in Congress.

In this time of argument and political gridlock, a blueprint to manage federal dysfunction is one function that appears to have gone smoothly. Throughout government, plans are ready to roll out to keep essential services running and numb the impact for the public. The longer a shutdown goes on, the more it will be felt in day-to-day lives and in the economy as a whole.

A look at what is bound to happen, and what probably won't:

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THIS: Washington's paralysis will be felt early on in distant lands as well as in the capital; namely, at national parks. All park services will close. Campers have 48 hours to leave their sites. Many parks, such as Yellowstone, will close to traffic, and some will become completely inaccessible. Smithsonian museums in Washington will close and so will the zoo, where panda cams record every twitch and cuddle of the panda cub born Aug. 23 but are to be turned off in the first day of a shutdown.

The Statue of Liberty in New York, the loop road at Acadia National Park in Maine, Skyline Drive in Virginia, and Philadelphia's Independence National Historical Park, home of Independence Hall and the Liberty Bell, will be off limits. At Grand Canyon National Park, people will be turned back from entrance gates and overlooks will be cordoned off along a state road inside the park that will remain open.

"People who waited a year to get a reservation to go to the bottom of the Grand Canyon all of a sudden will find themselves without an opportunity to take that trip," said Mike Litterst, a spokesman for the National Park Service.

BUT NOT THIS: At some parks, where access is not controlled by gates or entrance stations, people can continue to drive, bike and hike. People won't be shooed off the Appalachian Trail, for example, and parks with highways running through them, like the Great Smokies, also are likely to be accessible. Officials won't scour the entire 1.2 million-acre Grand Canyon park looking for people; those already hiking or camping in the backcountry and on rafting trips on the Colorado River will be able to complete their trips. The care and feeding of the National Zoo's animals will all go on as usual.

The shutdown won't affect Ellis Island or the Washington Monument because they are already closed for repairs.

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THIS: The Board of Veterans Appeals will stop issuing rulings, meaning decisions about some disability claims by veterans will wait even longer than usual. Interments at national cemeteries will slow. If a shutdown drags on for weeks, disability and pension payments may be interrupted.

BUT NOT THIS: Most Department of Veterans Affairs services will continue; 95 percent of staff are either exempted from a shutdown or have the budget to keep paying them already in place. The department's health programs get their money a year in advance, so veterans can still see their doctor, get prescriptions filled and visit fully operational VA hospitals and outpatient clinics. Claims workers can process benefit payments until late in October, when that money starts to run out.

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THIS: New patients won't be accepted into clinical research at the National Institutes of Health, including 255 trials for cancer patients; care will continue for current patients. Federal medical research will be curtailed and the government's ability to detect and investigate disease outbreaks will be harmed. Grant applications will be accepted but not dealt with.

BUT NOT THIS: The show goes on for President Barack Obama's health care law. Tuesday heralds the debut of health insurance markets across the country, which begin accepting customers for coverage that begins in January. Core elements of the law are an entitlement, like Social Security, so their flow of money does not depend on congressional appropriations. That's why Republicans have been trying explicitly to starve the law of money. An impasse in approving a federal budget has little effect on Obamacare. As for NIH operations, reduced hospital staff at the NIH Clinical Center will care for current patients, and research animals will get their usual care.

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THIS: Most routine food inspections by the Food and Drug Administration will be suspended.

BUT NOT THIS: Meat inspection, done by the Agriculture Department, continues. The FDA will still handle high-risk recalls.

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THIS: Complaints from airline passengers to the government will fall on deaf ears. The government won't be able to do new car safety testing and ratings or handle automobile recall information. Internal Transportation Department investigations of waste and fraud will be put on ice, and progress will be slowed on replacing the country's radar-based air traffic system with GPS-based navigation. Most accident investigators who respond to air crashes, train collisions, pipeline explosions and other accidents will be furloughed but could be called back if needed.

Kristie Greco, speaking for the Federal Aviation Administration, said nearly 2,500 safety office personnel will be furloughed but may be called back incrementally over the next two weeks. The union representing aviation safety inspectors said it was told by FAA Administrator Michael Huerta that nearly 3,000 inspectors will be off work. Greco did not confirm that.

BUT NOT THIS: Air traffic controllers and many of the technicians who keep air traffic equipment working will remain on the job. Amtrak says it can continue normal operations for a while, relying on ticket revenue, but will suffer without federal subsidies over the longer term. FAA employees who make grants to airports, most Federal Highway Administration workers and federal bus and truck safety inspectors will also stay on the job because they are paid with user fees. Railroad and pipeline safety inspectors will also remain at work.

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THIS: About half the Defense Department's civilian employees will be furloughed.

BUT NOT THIS: The 1.4 million active-duty military personnel stay on duty and under a last-minute bill, they should keep getting paychecks on time. Most Homeland Security agents and border officers, as well as other law enforcement agents and officers, keep working.

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THIS: The Special Supplemental Nutrition Program for Women, Infants and Children, known as WIC, could shut down. It provides supplemental food, health care referrals and nutrition education for pregnant women, mothers and their children.

BUT NOT THIS: School lunches and breakfasts will continue to be served, and food stamps, known as the Supplemental Nutrition Assistance Program, or SNAP, will still be distributed.

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THIS: A shutdown that lasts two weeks or more would probably start to slow an already sluggish economy, analysts say. Closures of national parks would hurt hotels, restaurants and other tourism-related businesses. And federal workers who lost pay would spend less, thereby curbing economic growth. A three-week shutdown would slow the economy's annual growth rate in the October-December quarter by up to 0.9 of a percentage point, Goldman Sachs has estimated. If so, that could mean a growth rate of 1.6 percent, compared with the 2.5 percent that many economists now forecast.

BUT NOT THIS: Little impact on the economy if the shutdown only lasts a few days.

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THIS: Economic data will be interrupted as the Bureau of Labor Statistics ceases almost all operations. This will leave the stock market without some of the benchmark economic indicators that drive the market up or down. The key September jobs report, due Friday, could still be released on time if the White House authorizes that, but that's not been determined. Statistical gathering also is being interrupted at the Commerce Department and Census Bureau. This means the government won't come out on time with its monthly report on construction spending Tuesday or a factory orders report Thursday.

BUT NOT THIS: The weekly report on applications for unemployment benefits is still expected Thursday. The Treasury Department's daily report on government finances will be released normally and government debt auctions are to proceed as scheduled. And at Commerce, these functions continue, among others: weather and climate observation, fisheries law enforcement and patent and trademark application processing.

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THIS: Some passport services located in federal buildings might be disrupted — only if those buildings are forced to close because of a disruption in building support services.

BUT NOT THIS: Except in those instances, passport and visas will be handled as usual, both at home and abroad. These activities of the Bureau of Consular Affairs are fully supported by user fees instead of appropriated money, so are not affected. As well, the government will keep handling green card applications.

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THIS: The Federal Housing Administration, which insures about 15 percent of new loans for home purchases, will approve fewer loans for its client base — borrowers with low to moderate income — because of reduced staff. Only 67 of 349 employees will keep working. The agency will focus on single-family homes during a shutdown, setting aside loan applications for multi-family dwellings. The Housing and Urban Development Department won't make additional payments to the nation's 3,300 public housing authorities, but the agency estimates that most of them have enough money to keep giving people rental assistance until the end of October.

BUT NOT THIS: It will be business as usual for borrowers seeking loans guaranteed by Fannie Mae and Freddie Mac, which together own or guarantee nearly half of all U.S. mortgages and 90 percent of new ones.

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THIS: Possible delays in processing new disability applications.

BUT NOT THIS: Social Security and Medicare benefits still keep coming.

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Associated Press writers Sam Hananel, Matthew Daly, Joan Lowy, Kevin Freking, Hope Yen, Lauran Neergaard, Andrew Miga, Deb Riechmann, Ricardo Alonso-Zaldivar, Lolita C. Baldor, Jesse Holland, Mary Clare Jalonick and Alicia Caldwell in Washington; and Felicia Fonseca at Grand Canyon National Park, contributed to this report.


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Obama focuses on military as government shuts down

WASHINGTON — As much of the federal government grinds to a halt, President Barack Obama is telling the U.S. military he'll push Congress to re-open the government as soon as possible.

In his sole response early Tuesday to Congress' failure to avert the first shutdown in nearly two decades, Obama addressed his comments in a video to American troops, rather than the lawmakers he's been scolding for weeks.

There was no reference in the three-minute video message to Republicans, whose insistence that Obama's health care law be scaled back has been at the center of a grueling back-and-forth between the GOP-controlled House and the Democratic-led Senate.

"Unfortunately, Congress has not fulfilled its responsibility," Obama said. "It has failed to pass a budget and, as a result, much of our government must now shut down until Congress funds it again."

Troops in uniform in Afghanistan and elsewhere will stay on duty, Obama said, noting he'd signed a law Monday to ensure they get their paychecks on time. That GOP bill began in the House and was taken up by the Senate, reflecting a rare measure of agreement among Democrats and Republicans: No one wants to be blamed for the military not getting paid.

But thousands of civilians who work for the Defense Department face furloughs, compounding the damage already inflicted on the military by automatic spending cuts.

"I know this comes on top of the furloughs that many of you already endured this summer," Obama said. "You and your families deserve better than the dysfunction we're seeing in Congress."

Hundreds of thousands of government workers will be off the job Tuesday after a short work period to wind down operations, but some essential services, including border patrols, air traffic controllers and Social Security benefits, will continue. Meanwhile, it was unclear how long the shutdown would last or how Congress would find a way to agree on restoring funding.

As the shutdown approached hours earlier with Congress gridlocked, Obama called Republican and Democratic congressional leaders, but there was no breakthrough in the budget impasse.

Obama said a "shutdown will have a very real economic impact on real people, right away," with hundreds of thousands of federal workers furloughed and veterans' centers, national parks, most of the space agency and other government operations shuttered.

He blamed House Republicans, whom he accused of seeking to tie government funding to ideological demands, "all to save face after making some impossible promises to the extreme right wing of their party."

On Tuesday, Obama planned to meet with Americans who will enroll in new insurance exchanges created by his health care law; ironically, implementation of the law and the opening of the exchanges on Tuesday will proceed despite the shutdown.

The spending fight is a prelude to the bigger confrontation over the nation's credit limit, expected to hit its $16.7 trillion cap in mid-October. Obama on Monday urged Republicans not to saddle the legislation to increase the debt ceiling with measures designed to undermine the health care law. He has vowed not to negotiate over the debt ceiling, saying that a default would be worse for the economy than a partial government shutdown.

On Wednesday, Obama is scheduled to meet with top Wall Street CEOs to discuss the state of the economy, including the debt ceiling. The meeting will be with members of the Financial Services Forum, a trade group representing the 19 biggest financial service institutions doing business in the United States, including Goldman Sachs, Bank of America and Citigroup. The Forum joined 250 other business organizations in a letter to Congress on Monday calling on lawmakers to avoid a shutdown, raise the debt ceiling and then address long-term spending issues and deficits.

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Online:

Obama video: http://vimeo.com/75834646

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Follow Josh Lederman on Twitter at http://twitter.com/joshledermanAP and Jim Kuhnhenn at http://twitter.com/jkuhnhenn


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Secretive Vatican bank takes step to transparency

VATICAN CITY — The Vatican took another step in its efforts to be more financially transparent by publishing a first-ever annual report for the Vatican bank on Tuesday. It comes as Italian prosecutors investigate alleged money-laundering there, a Vatican monsignor remains in detention and the pope himself probes the problems that have brought such scandal to the institution.

Earnings at the bank, known as the Institute for Religious Works, rose more than four-fold in 2012 as net trading income rebounded from a loss in 2011, the report said. The IOR said it earned 86.6 million euros ($116.95 million) as the value of the securities it held and sold rose to 51.1 million euros from a loss of 38.2 million in 2011. More than 50 million euros of that profit was given to the pope for his charitable works.

The picture may not be so rosy for 2013, with rising interest rates cutting into profits and millions of euros earmarked for the IOR's ongoing transparency process, which has involved hiring outside legal, financial and communications experts to revamp its procedures, review its client base and remake its image.

"Overall, we expect 2013 to be marked by the extraordinary expenses for the ongoing reform and remediation process, and the effects of rising interest rates," bank president Ernst von Freyberg said in a statement.

He said the publication of the report meets the bank's commitment to providing transparency about its activities.

Aside from the earnings, the 100-page report published Tuesday provides some fascinating reading about the secretive institution: The IOR in 2012 had 41.3 million euros in gold, metals and precious coins, owned a real estate company and was bequeathed two investment properties worth 1.9 million euros. It also made some 25.8 million euros in loans in 2012.

The Vatican has long insisted the IOR isn't a bank but a unique financial institution aimed at managing assets for religious or charitable works — a distinction that presumably helped it avoid typical banking regulations. Yet in the past year, the IOR has slowly revealed itself to work very much like a bank, providing asset management services to its clients, earning some 12.2 million euros in fees and commissions for such services in 2012 and making loans.

The Vatican is about to enter a second round of international scrutiny by the Council of Europe's Moneyval committee, which helps countries comply with international norms to fight money laundering and terrorist financing. The Vatican passed Moneyval's inaugural inspection last year, but evaluators gave the IOR and the Vatican's financial oversight agency poor or failing grades for insufficient controls to ensure that its clients and assets were clean.

The report was released as Rome prosecutors continue to investigate a Vatican accountant, Monsignor Nunzio Scarano, who was arrested in an alleged plot to bring 20 million euros into Italy from Switzerland without declaring it at customs. Scarano is also under investigation in his native Salerno for allegedly laundering money through his IOR account. His lawyer has insisted the money was clean and that he was only trying to help out friends.

The IOR's former top managers, Paolo Cipriani and Massimo Tulli, meanwhile, are under investigation by Rome prosecutors for alleged violations of Italy's anti-money laundering norms. Rome financial police launched the investigation in 2010, seizing 23 million euros ($30 million) from a Vatican account at an Italian bank after determining that the IOR hadn't provided sufficient information about the transaction. The Vatican has said it was a misunderstanding and money was eventually ordered released.

Cipriani and Tulli resigned in July.

Around the same time, Pope Francis created a commission of inquiry into the IOR to look into every aspect of its operations to get to the bottom of the scandals that have bedeviled it. The commission has wide-ranging authority to obtain documents, data and information, even overriding traditional banking secrecy rules to get it. Francis also named a trusted prelate to be his eyes inside the bank to figure out what really goes on inside the tower just inside the Vatican walls.

The Vatican bank was founded in 1942 by Pope Pius XII. It employs 114 people, runs the Vatican pension system and oversees about 6.3 billion euros in customer assets. Its customer base has been reduced from some 21,000 customers in 2011 to 18,900 last year, thanks to efforts to close inactive accounts. Customers include religious orders; Vatican offices, embassies and employees; individual cardinals, bishops and priests and foreign embassies accredited to the Holy See.

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Report is at www.ior.va

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Follow Nicole Winfield at www.twitter.com/nwinfield

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Report is at www.ior.va

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Follow Nicole Winfield at www.twitter.com/nwinfield


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Dead delivery dotcom a tease

Written By Unknown on Senin, 30 September 2013 | 16.30

There have been lots of media reports over the past several days saying that the beloved, iconic dotcom failure Kozmo.com is about to make a comeback. Such reports are false.

Allow me to explain.

Kozmo, you may recall, was the delivery service that held a special place in the hearts of late-'90s college students such as myself. Kozmo's sweaty and oft-underfed bike couriers would arrive in an hour with what you craved, whether a pint of Ben & Jerry's, a pack of gum or a CD. That is, until the spectacular failure of this business model played out. There was no delivery charge or minimum order. And back then, some people were still loathe to divulge credit card info online. The implosion of Kozmo was predictable.

Fast-forward 13 years, and the Kozmo.com website was suddenly live last week with the declaration: "Remember us? We're relaunching soon with the vision to fulfill your online order incredibly fast, and on-demand."

Bloggers jumped on the Kozmo rebirth story. I wanted to as well. So I emailed an address listed for the defunct darling, half-hoping I'd soon hear back from one of the cofounders, Joseph Park or Yong Kang.

What I got instead was a canned statement from a man named Barnaby Montgomery, the CEO of Yummy.com, a same-day grocery service based in Los Angeles. It delivered the disappointing truth: Basically, Yummy plans to assume the old brand and capitalize on the name recognition. They've purchased the URL, and, apparently, the rights to the name. I'm betting they'll launch a same-day delivery service called Kozmo in locations where people still get wistful when they hear the name — like right here in Boston. It's not the old Kozmo; it's just called Kozmo.

The truth is that same-day delivery of goods and groceries is the next, maybe final frontier of online commerce. Foreseeing this, large chain stores have begun pulling out all the stops to keep you coming back. Like the Walgreens in Downtown Crossing, where you can buy sushi or live lobster in addition to all the regular standbys such as paper towels and dish detergent. Having been reared on Amazon.com, Millennials want what they want, when they want it. The term "convenience store" is actually an oxymoron for them. The decades-old ritual of wheeling a giant cart up and down the aisles and leaving with a week's worth of groceries could therefore come to an end. It could be that eventually, the only reason to roam the aisles is to acquire specialty goods — the lobster you want to pick it out yourself (yes, at Walgreens!) or the rare bacon only found at Bees Knees Supply Co. in Fort Point (true story).

With Amazon and Walmart hoping to dominate the same-day delivery space, the time is right for Kozmo to make a comeback. It's too bad that's not exactly what's happening, but here's hoping Yummy.com — or someone — gets it right this time.


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State extends solar panel program

The deadline for a solar power incentive program in several communities across the state has been extended after unexpected demand for solar panels, state and local agencies said.

Solarize Mass, a program that makes solar installation cheaper for individuals by aggregating installations and orders, will give residents in 10 towns — including Brookline, Newton and Medford — another month to sign up for the program. This is the third round of the program, with a fourth set to begin soon, open to communities that choose to join.

"There's been great interest and participation by residents and small businesses," said Mark Sylvia, commissioner of the state Department of Energy Resources. "Extending it allows greater participation and a great benefit of that continues to drive the price down."

Because there are several tiers of pricing that depend on the number of installations, extending the deadline is beneficial for people who already have signed up as well, Sylvia said.

Betsy Russell, a Brookline resident who has signed up for the program and decided to buy the panels upfront, said she has looked into solar in the past, but decided to make the investment because of the assistance she will get in dealing with assessments and other paperwork.

"I don't have to spend hours that I don't have trying to master solar energy," Russell said. "It made it logistically and financially more appealing."

Russell said she expects her electric bill to be cut by about a third, and said she likely will break even in six years.

Officials acknowledged that the upfront cost is large, but said the program's model allows for solar power to be more accessible.

Homeowners and businesses can lease solar panels and pay a discounted rate for their electricity to immediately see savings on electricity bills, or buy the panels outright.

The cost varies between communities, but typical residents in Medford who purchase the panels can expect to pay roughly $17,000 up front, a number that is eventually halved thanks to a rebate and state and federal tax credits.

So far, 269 people with homes and businesses deemed suitable for panels have signed contracts, for a total of 1.9 MW of power.

Alicia Hunt, director of Energy and Environment for Medford, said the town had 100 buildings that were acceptable for solar out of 300 that were considered.

Hunt said some of the interested parties have been small- and medium-sized businesses, looking to cut costs long-term.

"They see that there's financial benefit to them doing it," Hunt said. She added no businesses have signed the contract yet, but she expects several to do so by the time the new deadline passes.


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Japan manufacturing slows, but trend remains good

TOKYO — Japanese manufacturing slipped in August, but the government said Monday that output is expected to accelerate in coming months. The overall improvement since late last year could lend support for Prime Minister Shinzo Abe's proposal to raise the sales tax in April.

Industrial output fell 0.7 percent from the previous month after a 3.4 percent jump in July, according to the Ministry of Economy, Trade and Industry. But the ministry also said manufacturing "shows signs of picking up at a moderate pace" and that it expected to jump 5.2 percent in September and grow more in October.

The Japanese government has long planned to raise the sales tax from 5 percent to 8 percent in April to reduce its massive debt and meet higher social security costs as the country's population ages. Abe's Cabinet is expected to agree formally Tuesday to move forward with the plan.

The recovery in manufacturing is "a good sign of a sustained recovery and good enough (for) Abe to move ahead with the sales tax hike," said Junko Nishioka, chief economist at RBS Securities Japan.

Any tax hike risks derailing the modest economic recovery that Abe has engineered with the Bank of Japan since taking office in December. The hope is that the economy will be strong enough to withstand a tax increase next year.

In one encouraging sign, retails sales rose 1.1 percent in August from the same month a year ago, the ministry said.

A key economic report, the Bank of Japan's quarterly "tankan" survey of business sentiment, is due out Tuesday before the Cabinet meets.

Japan's economy, the world's third-largest, has generally been improving. In the second quarter, it expanded at an annual pace of 3.8 percent on higher spending on private and public investment.


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White House: GOP bill 'reckless,' 'irresponsible'

Written By Unknown on Minggu, 29 September 2013 | 16.30

WASHINGTON — The White House says a House Republican bill that would delay a major provision of President Barack Obama's health care law is reckless and irresponsible.

Obama spokesman Jay Carney also says any Republican who votes for the bill is "voting for a shutdown." He notes that House Republicans have tried and failed to delay or eliminate the law's funding more than 40 times.

The House is expected to vote on the bill Saturday night.

The bill would delay for one year the requirement for nearly all uninsured people to buy health insurance or face penalties. It also would repeal a tax on medical devices.

Obama has said he will not delay his signature legislative achievement. The White House also has expressed opposition to repealing the medical devices tax.


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Friendly’s fights slide

Two years after filing for bankruptcy, Friendly's Ice Cream continues to churn away at a tall order: reinvigorating a 78-year-old chain competing against the likes of Applebee's, Panera, IHOP and Chipotle.

While analysts cite progress important to a turnaround — in customer service, and menu and restaurant updates — some question whether the Wilbraham-based chain can survive in the long run.

Customer satisfaction surveys show consumers like the changes, according to Darren Tristano, executive vice president of Technomic, a Chicago food industry consulting and research firm.

"The important element is will they be able to sustain that positive reaction?" he said. "It will take continuous effort. As some of these older brands continue to age, it gets increasingly difficult to turn them around."

Friendly's CEO John Maguire — a Weymouth native and former Panera COO who joined the company in April 2012 — said Friendly's has seen steady progress in three focus areas: the friendliness and retraining of employees; food quality and menu changes; and the cleanliness and energy level of its restaurants.

By year's end, Friendly's expects to have renovated 45 restaurants, with another 50 planned for 2014.

"We have a long ways to go," Maguire said. "We're just starting out, so sales increases will come as we get more consistent and make the improvements we need to make."

Friendly's expects about $500 million in revenue this year — down from 
$700 million in 2011 — from 355 restaurants and ice cream sales at 7,500 supermarkets and other retailers.

"We're going to exceed our profit expectation for 2013," Maguire said. "We grew in 2012, and we'll grow our earnings in 2013."

Friendly's filed for Chapter 11 bankruptcy in October 2011, citing the economic downturn and rising commodity prices. Over time, it had stopped investing in its employees, quality of its food, and the cleanliness and upkeep of its restaurants, according to Maguire. "If we (address those issues), we'll survive," he said.

Friendly's closed about 100 restaurants before emerging from bankruptcy protection in January 2012 as a leaner chain under an affiliate of private investment firm Sun Capital Partners, which acquired Friendly's in 2007.

Maguire disagrees with those who view Friendly's as past its time, noting the chain holds a special place for many customers who visited as children with parents or grandparents.

"There are people who love and always did love and probably always will love Friendly's," agreed Michael Tesler, senior marketing lecturer at Bentley College. "But I don't know if there is enough. Time has sort of passed by Friendly's between Panera and Chipotle and Shake Shack and Tasty Burger."


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App’s the way to monitor baby

A Boston-based MassChallenge finalist is taking baby-monitoring beyond devices that record only sight or sound.

The SensibleBaby SmartOne is a onesie with a front pocket containing an embedded sensor that sends a constant signal to a nearby smartphone via an app that alerts parents when a sleeping infant is too hot, too cold or sleeping on his or her stomach.

"We want to be a co-parenting tool that empowers people with information so that they don't have to worry about their child," said SensibleBaby CEO Ben Cooper, who's expecting his first child in December.

Cooper and his three co-founders — Jeff Tagen, Jill Ju and Jack Sivak — met as strangers in March at Start-up Weekend, a 54-hour marathon during which aspiring entrepreneurs form teams, pitch an idea and make it a reality.

The four decided to try to create something better than baby-monitoring audio recorders and video cameras on the market.

"Audio monitors are wonderful, but if you're not listening, they don't help," said Cooper, 29. "We wanted to only alert parents when they need to act."

By the end of the weekend, they had a name for their new company, a logo, a website and a working prototype consisting of a taped-together sensor that dropped into a hand-sewn sock.

"It wasn't very pretty," Cooper recalled with a laugh, "but it worked."

It worked well enough that the four won, and one of their prizes was a waived application fee to MassChallenge, the Boston start-up accelerator and $1 million competition, which wraps up on Oct. 30.

In the meantime, the team won $100,000 through Founder.org and is using the money to refine and test their product for what they hope will be a launch in the first quarter of next year.

SmartOne sets will contain a sensor and three onesies, and will sell for between $100 and $150 in baby boutiques and on the company's website, mysensiblebaby.com.


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