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Personal Finance. one day, a ゅοο° told me a story, that's her tears come from water. because ,she live in water. Investing Ideas

Sunday, February 11, 2007

Applix Shares Up on 4Q Profit Increase

WESTBOROUGH, Mass. (AP) -- Business management software provider Applix Inc. said its fourth-quarter earnings nearly tripled on a tax benefit and higher software license revenue, sending shares surging 20 percent in morning trading.


After the bell Thursday, the company said net income rose to $6 million, or 34 cents per share, from $2.5 million, or 15 cents per share, in the year-ago period. The latest period includes a tax benefit of $4.2 million, or 24 cents per share.

Excluding the tax gain, a stock-based compensation charge and other costs, adjusted earnings were $3 million, or 17 cents per share, for the current quarter, up from $2.7 million, or 16 cents per share, on the same basis last year.

The results beat Wall Street's 14-cent consensus estimate, according to analysts polled by Thomson Financial.

Quarterly revenue climbed 44 percent to $16 million versus $11.1 million in the previous year. Software license sales grew to $9.6 million from $6.6 million, and professional services and maintenance revenue rose to $6.4 million from $4.4 million.

Shares of Applix climbed $2.18, or 20 percent, to $13.07 in morning trading on the Nasdaq Stock Market, having earlier hit a new 52-week high of $13.50. The shares previously traded in a 52-week range of $6.33 and $11.85.

$25M Offered to Reduce Climate Change

LONDON (AP) -- British tycoon Sir Richard Branson on Friday announced a $25 million prize for the first scientist to come up with a way to extract greenhouse gases from the atmosphere.

The Virgin Group chairman was joined by former Vice President Al Gore and other leading environmentalists as he announced the challenge.


Branson compared it to the competition launched in 1675 to devise a method of estimating longitude accurately. It was 60 years before English clock maker John Harrison discovered an accurate method and received his prize from King George III.

"The Earth cannot wait 60 years. We need everybody capable of discovering an answer to put their minds to it today," Branson said.

Gore said the planet had a "fever" that had to be taken seriously.

"Up until now, what has not been asked seriously on a systematic basis is, is there some way that some of that extra carbon dioxide may be scavenged effectively out of the atmosphere? And no one knows the answer to that," Gore said.

In September, Branson pledged to invest $3 billion to fight global warming, saying he would commit all profits from his travel firms -- including Virgin Atlantic airline and Virgin Trains -- over the next 10 years.

As part of that pledge, he launched a new Virgin Fuels business, which is to invest up to $400 million in green energy projects in the next three years.

SiRF Files Patent Complaint With ITC

SAN JOSE, Calif. (AP) -- A unit of SiRF Technology Holdings Inc., a maker of global positioning system location technology, said Friday it asked trade officials to see if Global Locate Inc. is violating its patents.

SiRF said its SiRF Technology Inc. unit filed a complaint in the U.S. International Trade Commission that seeks to prevent Global Locate from importing GPS devices that use technology SiRF says is patented.

The move comes eight weeks after SiRF filed a patent infringement suit against Global Locate and its U.S. distributor, Innovation Sales Southern California, in the U.S. District Court for the Central District of California.

SiRF shares rose 32 cents on the Nasdaq in morning trading to $31.18.

Oil Prices Hover Below $60 a Barrel

LONDON (AP) -- Oil prices briefly rose above US$60 a barrel Friday for the first time since early January, lifted by tension between Iran and the U.S., violence in Nigeria and frigid U.S. temperatures.


Light, sweet crude for March delivery rose 13 cents to US$59.84 in electronic trading on the New York Mercantile Exchange by Friday afternoon London time.

Oil prices have risen steadily over the last two weeks on news of bitter winter weather in the U.S., the world's biggest oil consumer. On Thursday, the contract jumped US$2 to settle at US$59.71 a barrel -- the highest settlement price since Dec. 29.

Before Friday, crude oil had not traded above US$60 a barrel on the Nymex since Jan. 3, the first trading day of the year.

Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo, thought the price increase was an overreaction.

"The surge is quite hard to understand. It seems traders are looking at the short term -- heating oil demand and geopolitical tensions -- when they should be looking at the medium and long term," Emori said.

"We have to remember that the geopolitical risks, especially in relation to Iran, have not really been realized in terms of affecting supply, and that the winter season will be over in a month," he said.

The Brent crude contract for March fell 11 cents to US$58.92 a barrel on the London ICE Futures exchange.

On Thursday, Iran stepped up its warnings to the United States, which rekindled worries that supplies out of the oil producer could be hindered. Iranian supreme leader Ayatollah Ali Khamenei said Tehran would strike U.S. interests around the world if his country is attacked.

Though the comments didn't immediately cause a spike in prices, it kept prices from falling, as did ongoing forecasts of cold weather throughout the United States, and news of a shutdown at an Occidental Petroleum Corp. crude and natural gas field in California.

The market was also watching violence in Nigeria, where a Frenchman was kidnapped Thursday in the latest of a spate of violence targeting oil workers.

More than 100 foreigners have been seized in a year of stepped-up attacks across Nigeria's southern region, where the crude is pumped. More than 40 have been seized in the past month alone. The violence in Africa's biggest oil producer has cut daily output by nearly a quarter.

In other Nymex trading, natural gas was down 2 cents to US$7.851 per 1,000 cubic feet. On Thursday it settled at US$7.871, its highest settlement price of the year. Natural gas, the more popular form of home heating in the United States, has risen more than 60 percent over the past month on the recent cold weather. It is trading around the same level it was this time last year.

Heating oil rose 0.16 cents to US$1.7266 a gallon.

The National Oceanic and Atmospheric Administration continues to forecast normal to below-normal temperatures across the United States until at least Feb. 22.

Primedia Mulls Sale of Enthusiast Media

NEW YORK (AP) -- Specialty magazine publisher Primedia Inc. said Friday it is considering selling its Enthusiast Media division.

The unit's titles include Motor Trend, Hot Rod, Automobile and Automotive.com among more than 70 publications and 90 web sites.


In December Primedia said it would sell its hunting, fishing and outdoor titles to private equity firm InterMedia Partners LP for $170 million in cash.

"Given the multiples Primedia received from the sale of the Outdoors Group and the particularly strong investment and debt markets, the board believes the best course of action for primedia shareholders is exploring the complete sale of the enthusiast media segment," Chairman, President and Chief Executive Dean Nelson said in a statement.

Nelson said the board is also considering a spinoff of its Consumer Source division, which would create two separate publicly traded companies.

Consumer Source publishes and distributes free consumer guides including Apartment Guide, Auto Guide and New Home Guide.

Shares of Primedia added 31 cents, or 18.8 percent, to $1.96 in morning trading on the New York Stock Exchange.

MasterCard 4Q Profit Beats Expectations

NEW YORK (AP) -- MasterCard Inc., one of the world's largest credit-card brands, said Friday its fourth-quarter profit topped Wall Street expectations as strong consumer spending boosted transactions. The results drove shares of MasterCard to an all-time high before tumbling in early trading.


The Purchase-based company, which went public in May 2006, posted quarterly profit of $41 million, or 30 cents per share, compared with a loss of $53 million, or 39 cents per share, a year earlier. Excluding the impact of litigation settlements, MasterCard reported a profit of $41 million, or 31 cents per share, in the latest period.

Revenue rose 17.2 percent to $839 million from $716 million a year ago.

Results surpassed projections for profit of 17 cents per share on revenue of $826.9 million, according to analysts polled by Thomson Financial. "We are quite pleased with our financial performance in the fourth quarter," said President and Chief Executive Robert Selander in a conference call. "We look forward to leveraging our momentum in the industry, and take advantage of our customer-focused strategy, to keep deliver these kinds of results."

This is the second earnings report since MasterCard went public. The company's $2.39 billion initial public offering was used to unwind holdings by thousands of U.S. banks that controlled the company, and it now counts hedge funds like Atticus Management LLC and mutual funds like Fidelity among its biggest investors.

MasterCard does not deal with consumers directly, but issues its brand to banks and other financial institutions and makes money from processing fees when consumers use credit or debit cards. The company also makes money from payment-related services.

It processed $532 billion in global transactions, up 14 percent from the year-ago period. The company said it issued 817 million MasterCard-branded cards as of Dec. 31, up 12 percent from the year-ago period.

Also Friday, Mastercard raised its quarterly cash dividend by 66.7 percent to 15 cents per share from 9 cents per share. The dividend is payable May 10 to shareholders of record on April 9.

The results come as stronger consumer spending has bolstered results from a number of MasterCard's biggest rivals. American Express Co. and Morgan Stanley's Discover card division all reported better-than-expected results from their credit card business.

Meanwhile, credit card businesses bolstered results from issuers like Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc.

Visa, which operates the biggest credit card network in the U.S., said in October it plans to sell shares to the public something this year. The company hopes to streamline its operations, and insulate its member banks from legal damages it faces over antitrust and unfair-pricing claims brought by merchants.

The IPO for MasterCard raised about $650 million to fund a war chest to protect itself from legal troubles. Selander said Friday there was nothing new to report in the way of settlements.

The stock soared to a high of $118.07 in the first few minutes of trading, before falling $2.97, or 2.6 percent, to $111.76 in morning trading. The stock has doubled since going public.

Britain's Trade Deficit Hits New High

LONDON (AP) -- Britain's overall trade deficit hit a record high in 2006, according to official data released Friday, partly due to the fact that the nation has become a net importer of oil.

The Office for National Statistics said the goods trade deficit was 84.3 billion pounds ($164.1 billion; 126.3 billion euros) last year, up sharply from 68.8 billion pounds in 2005. It is the highest deficit since records began in 1697.


The balance on oil trade widened to 3.7 billion pounds ($7.2 billion; 5.5 billion euros) last year from 2.2 billion pounds in 2005.

Higher imports of aircraft and silver widened the deficit on so-called "erratic" goods to 3.2 billion pounds ($6.2 billion; 4.8 billion euros), from 600 million pounds in 2005.

The Statistics Office said the goods trade deficit in December alone also was wider than expected.

The goods trade deficit widened to 7.1 billion pounds ($13.8 billion; 10.6 billion euros) in December as exports of aircraft and capital goods fell from a revised 6.9 billion pounds the month before. The November deficit had originally been published as 7.2 billion pounds.

3M Takes 100 Percent Stake in Tape Maker

ST. PAUL, Minn. (AP) -- The 3M Co., which makes Post-it notes and Scotch tape, said Friday it paid $36 million for Sealed Air Corp.'s half stake in PolyMask Corp., a maker of protective films.

The deal with Sealed Air, which expects a gain of 22 cents per share in the first quarter due to the sale, gives 3M a 100 percent interest in PolyMask.

And 3M plans to use its full control to expand more quickly into the electronics, construction, aerospace, marine and automotive markets with industrial adhesives and tapes, the company said.

Finmeccanica, Russian Railways Sign Deal

MILAN, Italy (AP) -- Italian defense company Finmeccanica SpA said Friday it had signed a memorandum of understanding with state-owned JSC Russian Railways for the creation of a high-speed rail link between Moscow and St. Petersburg.


Italy's state-owned railway operator Ferrovie dello Stato also signed the memorandum.

Finmeccanica and Ferrovie dello Stato did not provide any financial details nor did the company say when construction would begin.

"We hope to sign the binding agreement in March," said Ferrovie dello Stato Chief Executive Mauro Moretti.

Finmeccanica said in October it had signed an agreement with JSC Russian Railways to work together on the production, technical assistance, and marketing of rolling-stock and rail infrastructure in Russia.

Moretti said the three-way partnership also aimed to develop high-tech railway products to export to international markets, especially in Eastern Europe.

The partnership is watching with interest a tender to build a US$2 billion (euro1.54 billion) railway in Saudi Arabia, in which Russian Railways is participating, he said.

The winner of the tender was expected to be announced at the start of 2007, according to a Russian press report. It will be the longest railway in the Middle East.

NYC Gun Stings Questionable, Feds Say

NEW YORK (AP) -- Private investigators hired by the city to conduct sting operations on out-of-state gun shops could be breaking the law, and the dealers they caught making illegal sales will not be prosecuted, federal officials said Thursday.


City officials have sued more than two dozen dealers after hiring investigators to pose as buyers attempting straw purchases, in which one person fills out the paperwork for the gun but is buying for someone else. The scam is often used by convicted felons and others barred from owning firearms.

The city argues that the shops -- in Georgia, Ohio, Pennsylvania, South Carolina and Virginia -- are responsible for many of the illegal weapons that end up in New York, and the suits have led seven dealers to agree to more scrutiny.

The federal Bureau of Alcohol, Tobacco, Firearms and Explosives announced in May it was reviewing whether the city acted legally.

"Potential legal liabilities" arise when civilians do the work of law enforcers, Department of Justice spokesman Bryan Sierra said Thursday. The department has decided charges are not warranted against dealers in the sting cases, he said.

It was unclear whether the private investigators could face charges.

Deputy Mayor Ed Skyler dismissed the department's suggestion that investigators could be breaking the law.

"When illegal guns are sold in our city, that's putting people at great physical risk, and that's more important," he said Thursday. "The city has followed the law, and there's no reason we shouldn't continue to do these operations."

Some of the gun sellers have asked a judge to dismiss the lawsuits, saying the city is out of bounds because the dealers are not doing business in New York.

Gun rights advocates have criticized the sting operations, and the Second Amendment Foundation issued a statement Thursday calling the Department of Justice's findings a "significant victory."

Sainsbury Sold Part of Sainsbury's Bank

LONDON (AP) -- J. Sainsbury PLC, a British supermarket chain that has been the subject of takeover talk lately, said Friday it sold 5 percent of its stake in Sainsbury's Bank for 21 million pounds ($41.3 million; 31.7 million euros) to HBOS PLC.


The company will realize a profit of about 10 million pounds ($19.7 million; 15.1 million euros) from the sale, Sainsbury said in a statement. The proceeds will be used for general business purposes.

The bank will now become an equal joint venture between Sainsbury's and HBOS. Prior to the transaction HBOS held a 45 percent stake in Sainsbury's bank.

"Both parties believe that the ... joint venture structure is more appropriate and reflects the shared commitment each partner has to growing the business for the long term," Sainsbury said in a statement.

J. Sainsbury shares dipped 0.2 percent to 514.38 pence ($10.11; 7.77 euros) on the London Stock Exchange.

Last week, several private equity groups said that they were considering making a bid for Sainsbury, sending shares in Britain's third-largest supermarket group soaring.

Francis Bacon Painting Sells for $27M

LONDON (AP) -- A portrait by British painter Francis Bacon sold for $27.6 million, a record price for the artist, Christie's auction house said Thursday.

"Study for Portrait II" is one of a series of Bacon works inspired by Diego Velazquez's 1650 "Portrait of Pope Innocent X," auctioneers said.

Christie's spokeswoman Rhiannon Broomfield said the buyer had not yet agreed to disclose their identity or nationality.

The price paid for Bacon's painting eclipses the previous $15 million record for his work -- paid for "Version No. 2 of Lying Figure with Hypodermic Syringe" last November.

Bacon, who died in 1992, is considered one of Britain's most important 20th-century artists.

DRS Technologies Raises Outlook

PARSIPPANY, N.J. (AP) -- Military contractor DRS Technologies Inc. on Friday raised its earnings guidance for the fiscal year, saying realigning its businesses made the company more efficient.

DRS Technologies now expects fiscal 2007 earnings of $2.98 per share to $3.05 per share, compared with a previous forecast of $2.83 per share to $2.90 per share. It expects revenue of $2.7 billion to $2.75 billion, which is unchanged from its earlier outlook.


Analysts polled by Thomson Financial look for profit of $2.89 per share on revenue of $2.8 billion.

The company earned $2.67 per share on revenue of $1.74 billion in fiscal year 2006.

DRS Technologies Chairman and Chief Executive Mark S. Newman said the company raised its guidance because realigning the company's four business segments created greater efficiency between in its various business groups in pursuing new business and sharing resources. Newman also cited "a climate of strong funding for core and supplemental defense budgets."

Shares of DRS Technologies lost 98 cents at $54.87 in morning trading on the New York Stock Exchange.

Grandma's Painting Sells for $600,000

OAKLAND, Calif. (AP) -- A woman who auctioned a painting that belonged to her grandmother, hoping to get a few thousand dollars to pay for her daughter's college tuition, was stunned when the picture fetched $600,000.


The painting, sold Sunday by Clars Auction Gallery in Oakland to an unnamed New York dealer, has no title or signature, and the gallery couldn't determine its origins.

But Redge Martin, gallery president, said Thursday that the buzz in the art world is that someone thinks it's the lost work of 17th-century Italian master Pier Francesco Mola.

Mola paintings hang in several museums. The highest price paid for his work appears to be $2.8 million, although several have sold for $100,000 or less, Martin said.

The painting shows a gray-haired, bearded man working on papers with an armillary sphere -- an instrument used in ancient astronomy -- in the background.

The seller inherited the painting, which had been given to her grandmother and hung for years in her home in Pisa, Italy.

When the family's oldest daughter was accepted to the University of California, Berkeley, the seller decided to see what it would bring. The final selling price, with the buyer's premium, was $620,900.

French Teachers, Public Servants Strike

PARIS (AP) -- Teachers, tax collectors, railway workers and other public servants went on strike in France to protest job losses and demand higher pay.

Police said up to 23,000 people demonstrated in Paris Thursday -- the largest march -- while the Communist-backed CGT union put the number of demonstrators at 85,000.


Unions representing public servants called for the strike in response to a government announcement that 15,000 jobs would be cut in the public sector in 2007. Strikers also protested the 0.8 percent pay raise received by public servants.

Secondary school teachers stayed out of the classroom, 53 percent of them off work for the day, according to the National Union of Secondary School Teachers. In parts of the poor suburbs east of Paris, 65-70 percent of teachers in the upper levels were striking and 180 schools have been closed, the union said in a statement.

Labor leaders said they would keep up pressure on President Jacques Chirac's conservative government.

"It is for the state to respond," said Jean-Claude Mailly of the Workers Force union. "For the moment, I don't hear much except that we need fewer civil servants and that more should be paid on merit."

Marches drew 5,000 people in Marseille, unions said, with 3,300 in Toulon, about 6,000 in Rennes and up to 4,000 in Lyon.

Genesis HealthCare 4Q Profit Falls

KENNETT SQUARE, Pa. (AP) -- Genesis HealthCare Corp., which runs long-term care facilities, said Thursday after the markets closed its fiscal first-quarter profit fell 6 percent on costs of going private.

Quarterly earnings decreased to $10.7 million, or 54 cents per share, from $11.4 million, or 58 cents per share during the same period a year earlier, the Philadelphia-area company said.

The results included costs of 9 cents per share related to going private, 2 cents per share from paying off debt and a penny per share due to an increase in the company's tax rate. Excluding those items, the company said it earned 66 cents per share in the quarter.

Revenue rose 9 percent to $477 million from $437 million.

Genesis HealthCare said in January that it will go private in a $1.25 billion deal with a joint venture formed by the private equity firms Formation Capital LLC and JER Partners.

Coal Mines Must Provide 4 Days of Air

CHARLESTON, W.Va. (AP) -- Underground coal mines must provide up to four days of breathable air to keep miners alive in emergencies such as an explosion or a tunnel collapse, federal regulators announced.


The requirement announced Thursday is part of a new law enacted after a string of deadly accidents, including the deaths of 12 miners at the Sago Mine in January 2006.

If miners cannot evacuate in an emergency, "they need a safe location that maintains an adequate supply of breathable air for them to use while they await rescue," said Richard Stickler, director of the Mine Safety and Health Administration.

Mine operators have 30 days to submit plans to the agency, which has been criticized by the United Mine Workers labor union and members of Congress for not implementing the law quickly enough.

A National Mining Association spokesman had not heard of the new requirement and declined to comment.

Bill Raney, president of the West Virginia Coal Association, said he was concerned the rule would disrupt similar efforts by the state.

The state Office of Miners' Health, Safety and Training is in the process of approving underground shelters that can provide 48 hours of air. Mine operators have until mid-April to submit plans for installing the shelters.

"We're on a very thoughtful, practical path here in West Virginia," Raney said. "Now all of a sudden we seem to get a press release that dictates different times, different dates, different things."

In the Sago accident, one miner was killed in an explosion and 12 others were unable to escape. Eleven died of carbon monoxide poisoning and only one, Randal McCloy Jr., was rescued after more than 40 hours trapped underground.

A company trying to get a mine shelter approved in West Virginia said it supported the 96-hour rule from the beginning.

"We want to give the rescue teams plenty of time to get these people and not have them feel like they have to risk their lives because they feel the people may only have a few hours left," said Ed Roscioli, chief executive of Allentown, Pa.-based ChemBio Shelter Inc.

N.D. Stops Saltwater on Roads, for Now

BISMARCK, N.D. (AP) -- The state has stopped splashing roads with saltwater left over from oil production, at least until it gets results from a laboratory checking the wastewater for contamination, officials said Thursday.


The state Health Department learned last week, after questions from The Associated Press, that the Transportation Department had been using oil well wastewater, up to 10 times saltier than sea water, as a de-icer in parts of North Dakota since the late 1960s.

Environmentalists worry it may have hurt wetlands and water supplies. The state chapter of the Sierra Club has not found other states that spread the wastewater as North Dakota has.

The state Industrial Commission is looking into the practice, said Don Canton, a spokesman for Gov. John Hoeven.

"We're looking at whether there was a lapse in permitting, a lapse in proper application or a lapse in the law," Canton said.

The Environmental Protection Agency is monitoring the state's actions, said Diane Sipe, an agency spokeswoman in Denver.

State transportation director Francis Ziegler said a sample of the oil well wastewater has been sent to a Minnesota lab for an analysis. He said the department stopped using the wastewater on roads this week, after the practice came under scrutiny. He would not say if the department intends to resume using the wastewater on roads.

"We suggested that they stop but we haven't required it," said Dennis Fewless, the Health Department's water quality director.

Transportation officials said tens of thousands of gallons of the oil well wastewater are used on North Dakota roads each year, and crews have not seen any harmful effects from it. The state gets it free from oil companies, which otherwise would have to pay to dispose of it in underground wells.

John Edward Corrent, the owner of a Salt Lake City-based company that processes oil well wastewater, said testing one water sample "is not representative of squat," since the state used wastewater from many wells.

North Dakota law requires that anyone in possession of any oil field fluid -- including saltwater -- must keep complete and accurate records of it. Failure to do so is a Class C felony, punishable by up to five years in prison and a $5,000 fine.

"I don't think we have real specific records," said Ziegler, of the transportation department.

Cronkite: Quest for Media Profits Hurts

NEW YORK (AP) -- Pressures by media companies to generate ever-greater profits are threatening the very freedom the nation was built upon, former CBS News anchor Walter Cronkite warned Thursday.

In a keynote address at Columbia University, Cronkite said today's journalists face greater challenges than those from his generation. No longer could journalists count on their employers to provide the necessary resources, he said, "to expose truths that powerful politicians and special interests often did not want exposed."


Instead, he said, "they face rounds and rounds of job cuts and cost cuts that require them to do ever more with ever less."

"In this information age and the very complicated world in which we live today, the need for high-quality reporting is greater than ever," he told journalism students and professionals at Columbia's Graduate School of Journalism. "It's not just the journalist's job at risk here. It's American democracy. It is freedom."

Cronkite said news accuracy has declined because of consolidations and closures that have left many American towns with only one newspaper. And as broadcasters cut budgets and air time for news, he said, "we're all left with a sound bite culture that turns political campaigns into political theater."

The former anchor urged owners of media companies -- newspapers and broadcast alike -- to recognize they have special civic responsibilities.

"Consolidation and cost cutting may be good for the bottom line in the short term but that isn't necessarily good for the country or the health of the news business in the long term," he said.

Michael Copps, a commissioner on the Federal Communications Commission, later said that looser broadcast regulations -- such as those that had required stations to regularly prove they serve the community interest -- have resulted in less local coverage, less diversity of opinion and fewer jobs for journalists over the past quarter century.

Without directly naming the nation's largest radio station operator, Clear Channel Communications Inc., Copps complained that many local musicians were being pushed aside when "media behemoths" distribute playlists from a central office.

The FCC is considering relaxing the rules even more. The agency decided in June to reopen the hotly disputed issue of ownership limits, which currently restrict the number of radio and television stations that one owner can have as well as cross-ownership between newspapers and broadcasters.

Many of the broadcast television networks and large media companies such as the Tribune Co. and Gannett Co. have complained that current restrictions are outmoded in a digital age in which consumers also have the Internet and cable TV from which to choose.

Considering television alone, the nation saw the number of major networks grow from three to five, said Benjamin Compaine, author of "Who Owns the Media?: Competition and Concentration in the Mass Media." Add to that several 24-hour news channels on cable, he said.

But opponents of loosened rules worry that changes would hurt minorities' access to the airwaves, curtail children's and local programming and limit musical diversity.

"We have more outlets now, more in sheer numbers, engaged in news presentation than we've ever had," said Tom Rosenstiel, a former political reporter for the Los Angeles Times and now director of the Project for Excellence in Journalism. "The problem is most of them are not engaged in a lot of serious news gathering. They are largely engaged in repackaging material that other people have produced."

Ownership questions aside, Kathleen Carroll, executive editor of The Associated Press, said that getting news to report on has become increasingly difficult, even as individuals have more outlets online and elsewhere in which to distribute information.

She said cities and states have passed more than 1,000 laws affecting access to public records in the wake of the Sept. 11, 2001, terrorist attacks. The United States and other governments around the world are also raising barriers.

"That's a very troubling trend," she said, "and it's one where I think whatever your view is about who owns the media, who's a journalist, none of us can get this information."

Zambia Proposes Tax Hike on Mining Firms

LUSAKA, Zambia (AP) -- The Zambian government proposed Friday to raise a tax on mining companies, aimed at helping the copper-rich but impoverished nation cash in on high global copper prices.

The proposed tax increase is part of the government's austere US$3 billion (euro2.3 billion) 2007 budget, released Friday?


Finance Minister Ng'andu Magande said the government planned to negotiate with the mining companies on tax revisions

He said the country's economy had grown by 5.8 percent in 2006, up from 5.2 percent in 2005, and that inflation stood at 8.2 percent at the end of the year -- both signs, he said, of "prudent monetary and fiscal policies."

International donors have cheered the Zambian government for its free-trade and anti-corruption policies, and have eliminated almost all of its foreign debt over the last two years.

But more than 70 percent of the population still lives in poverty, which has led to frustration with policies of recently re-elected President Levy Mwanawasa, evidenced in last year's bitter presidential elections. The distribution of copper benefits has become a key element of that debate.

Magande said the government wants to increase the country's royalty tax on copper earnings from 0.6 percent to 3 percent, increase the company income tax from 25 to 30 percent, and reintroduce a 15 percent withholding tax on dividends, interest, royalties and other mining sector transactions.

The existing 0.6 percent royalty tax, which is particularly low compared with taxes in other copper-producing countries, was put in place during an industry downturn early in the decade, when the Zambian government was desperate to attract foreign investment. Copper accounts for more than 60 percent of the southern African nation's exports.

Copper prices have since risen from less than US$1 per pound to more than US$3 per pound (about euro5 per kilogram), driven in large part by growing demand from China. Zambian copper production rose by 7.9 percent in 2006, Magande said, from 459,324 metric tons to 492,016 metric tons. The mining industry now directly employs almost 50,000 people in Zambia, he said.

"At the time when copper prices on the international market were low, mining companies were offered tax concessions in order to make their projects viable," Magande said in prepared remarks. "Now that the prices are high, there is need to review these concessions so that the nation can benefit from increased earnings from the mining companies."

Talk of revising the copper tax has raised fears, however, of a backlash among foreign mining companies many of which entered into long-term contracts with the government.

Magande said the government would now seek negotiations with those companies "so that there is mutual consent by contracting parties to revise the tax regime to the new rates."

Education and health will get 15 and 10.7 percent of the budget's spending, respectively. Magande said the government would recruit 4,000 new teachers and 1,900 new medical personnel. Zambia's health care sector is under severe strain, with a 16 percent HIV/AIDS prevalence rate.

Zambia is heavily reliant on foreign donors, with almost 30 percent of its budget coming from foreign sources.

Weyerhaeuser Earns $450M in 4th Quarter

FEDERAL WAY, Wash.- (AP) -- Forest products maker Weyerhaeuser Co. said Friday it swung to a profit in the fourth quarter from a year-ago loss, although lower domestic log prices still weighed on results.


The company earned $450 million, or $1.88 per share, compared with a loss of $211 million, or 86 cents per share, during the same period in 2005 which included charges to close some of its paper and lumber plants.

The latest quarter included a gain of $227 million, or 95 cents per share, for the refund of anti-dumping duties on Canadian softwood lumber sold in the U.S., and $43 million, or 18 cents per share, on the sale of its composite panels assets in Ireland, as well as charges that totaled 20 cents per share.

Excluding those items, the company earned 95 cents per share in the latest quarter.

Revenue fell 1 percent to $5.66 billion from $5.72 billion.

Analysts polled by Thomson Financial forecast a profit of 75 cents per share on revenue of $5.36 billion. The estimates typically exclude one-time items.

Weyerhaeuser shares rose 5 cents to $79.04 in morning trading on the New York Stock Exchange after rising to a 52-week high of $79.96 earlier in the sesion.

The company said lower domestic log prices, primarily in the West, affected its results in the quarter. Costs also rose due to unfavorable weather and production cuts that sought to balance harvest with demand.

Fed President: Inflation on Right Track

NEW YORK (AP) -- Federal Reserve Bank of St. Louis President William Poole sounded an optimistic note on the inflation and growth outlooks Friday, but warned that unexpectedly strong growth could spur the central bank to raise interest rates again.


"Recent inflation data themselves, and other information relevant to judging the inflation outlook, suggest that the inflation rate is likely to fall into a reasonable range this year," Poole said.

"Clearly, the momentum seems to be headed in a favorable direction, as last week's (Federal Open Market Committee) press release noted," Poole said. But he cautioned that "before we declare victory and head home" it's worth keeping in mind that "we might be underestimating the likely pace of economic activity," or labor productivity may turn out to be lower than now forecast.

"If we get an upside surprise on (gross domestic product) growth, then monetary policy may have to be tightened somewhat," Poole warned. Also, if the level of core inflation "seems to be settling at a rate above 2 percent, then such an outcome would be unacceptable to me," he said, adding "I put a very high weight on the Fed's responsibility to maintain low and stable inflation."

Poole's comments came in a speech prepared for delivery before the AAIM Management Association in St. Louis. Poole is a voting member of the interest rate-setting Federal Open Market Committee this year.

In recent comments, Poole has been one of the more dovish members of the central bank, and has indicated on several occasions that the outlook facing monetary policy makers was "symmetrical," in that events could transpire that could cause interest rates to be raised, held steady or lowered. Other Fed officials have been more hawkish and simply threatened rate increases if inflation did not fall. In his speech, Poole offered few clues into his outlook for monetary policy over 2007.

For the most part, Poole's economic outlook was upbeat on growth, and he said the worst of the trouble in the housing sector may be over. But he also warned that the data can often be surprising.

In his speech, Poole offered up his preferred inflation environment. "My commitment, certainly, is to do what I can to promote policy adjustments that will yield an inflation outcome, on average over a period of several years, centered on 1.50 percent," as measured by the core personal consumption expenditures price index, he said.

Poole said "by some indicators, the housing market is beginning to show signs of stabilizing," even as "we must recognize that the housing market is not out of the woods yet." The prime challenge facing home builders is a backlog of unsold homes and numerous cancellations of orders. Also, "at a minimum we can say that we do not have evidence as yet that home prices have stabilized," Poole said.

Nations Launch $1.5B Vaccine Program

ROME (AP) -- Five nations pledged $1.5 billion for a program encouraging drug companies to develop vaccines to help prevent pneumonia and meningitis, in hopes of saving at least 5.4 million children in the world's poorest countries by 2030.


The pilot project, launched Friday in Rome, is part of a wider effort to tackle deadly diseases in Asia, Africa and South America.

With funding from Italy, Canada, Norway, Russia and Britain, the plan targets pneumococcal disease, a major cause of pneumonia and meningitis, killing 1.6 million people every year.

"The key aim is to ensure there is secure funding for the vaccines urgently needed in the poorest countries, where thousands of children die every day from diseases that can be prevented," said a statement from World Bank President Paul Wolfowitz, who attended Friday's launch ceremony.

Pope Benedict XVI praised the plan's goal of developing vaccines as "inspired by the spirit of human solidarity, which our world needs in order to overcome every form of selfishness and to foster the peaceful coexistence of peoples."

"Such vaccines are urgently needed to prevent millions of human beings, including countless children, from dying each year from infectious diseases," the pontiff said, after meeting at the Vatican with the finance ministers from participating countries, as well as with others including Wolfowitz and Queen Rania of Jordan.

Vaccines are bought only if they meet standards of efficacy, safety and cost-effectiveness established by the GAVI Alliance -- formerly known as the Global Alliance for Vaccines and Immunization -- the World Bank and an assessment committee.

Participating vaccine companies must agree to sell the new vaccine at a price that cash-strapped governments in Africa, Asia and South America can afford.

Any manufacturer may apply for funding.

After seven to 10 years, AMC funding will phase out, and vaccine makers are expected to continue supplying the developing world with their products, at a discounted price, set during the process.

"The industry is not willing to invest resources to develop products that too few people have money to buy," Italian Economy Minister Tommaso Padoa-Schioppa told the pope. "Public funding of research is not enough to fill the gap."

Associated Press writer Daniela Petroff in Vatican City contributed to this story.

DaVita Offers $400 Million in Notes

EL SEGUNDO, Calif. (AP) -- DaVita Inc., which operates kidney dialysis centers, said Friday it will offer $400 million in senior notes due in 2013 in a private offering.

The offering is an addition to a series of debt securities that include $500 million in senior notes issued in March 2005.

The company said it will use the proceeds to repay part of the term loan portion of its senior secured credit facilities.

DaVita shares fell 7 cents to $54.83 in midday trading on the New York Stock Exchange.

S&P Cuts Spectrum Brands Rating

NEW YORK (AP) -- Credit ratings agency Standard & Poor's said Friday it cut its rating on Atlanta-based Spectrum Brands, maker of Rayovac batteries and Remington shaving products, for weak operating performance.

S&P cut its corporate credit rating on to "CCC+" from "B-" with a "developing" outlook.

Credit analyst Patrick Jeffrey noted that the company is facing intense competition in its battery business and increased commodity costs.

On Thursday Spectrum posted a first-quarter loss of 38 cents per share on declining revenue. Excluding certain expenses, the company said it would have earned 12 cents per share.

Shares of Spectrum, which has traded between $6 and $22.42 over the past 52 weeks, were down 45 cents, or 4.6 percent, at $9.44 in morning trading on the New York Stock Exchange.

Gov: Ark. Toyota Plant Benefits Tenn.

LITTLE ROCK (AP) -- Tennessee Gov. Phil Bredesen said that while he would like to see a planned Toyota Motor Corp. assembly plant in Chattanooga, his state would still benefit if the plant goes instead to eastern Arkansas.


Bredesen, speaking in Nashville Thursday, denied a report that said his administration had asked Memphis city officials to not back Marion, Ark.'s effort to land the plant. The Commercial Appeal newspaper in Memphis, citing sources, reported last week that Bredesen didn't want Memphis to help Marion while Chattanooga was still in the running for the 2,000-employee plant.

"I am certainly unaware of that," Bredesen said as he referred the question to his economic development team. "Certainly I put first priority on getting the plant in-state, but it certainly would benefit us to have a plant in Marion, Arkansas."

And Mark Drury, assistant commissioner for the Tennessee Department of Economic and Community Development, said Thursday his state's economic officials had not tried to undermine Marion's effort.

"Neither Governor Bredesen nor Commissioner (Matt) Kisber has asked economic development officials from the Memphis area to take a position in regards to any specific development site as it relates to any specific project," he said.

Toyota is reported to be looking for a site to build its Highlander sports utility vehicle. It considered Marion in 2002 before putting its Tundra truck plant in San Antonio, but marketing reasons -- Texas has a huge demand for pickup trucks -- influenced the automaker's decision.

"I'm still satisfied that we have the best location," Marion Mayor Frank Fogleman said Thursday from Washington, where he was meeting with congressmen to discuss his city's economic development effort. "We have a site where they could drive out tomorrow and start to work."

Now, as then, Marion touted easy access to a pair of cross-country interstates, four major railroads, the Mississippi River and a major airport at Memphis. Union Pacific announced last year it was expanding its Marion intermodal yard, where cargo suitable for shipment for barge, rail and trucks come together.

Chattanooga also has major interstates, a railroad and the Tennessee River.

Kay Brockwell, Marion's economic development director, said a study done as the city tried to woo Toyota in 2002 showed that the plant would help create 8,000 jobs -- those in the plant plus others at nearby businesses that would help supply the plant and take care of its workers.

"Probably 25 percent of those jobs would go to Marion people" which would leave another 6,000 jobs to be filled by others in the region, Brockwell said.

"We're sitting across the river from a county with a million people. My math skills aren't terrific, but I can tell you that's where a lot of people will be coming from," said Brockwell, also in Washington.

"I'm glad to see that Bredesen realizes that it's still a benefit for Tennessee," Brockwell. said. "There will still be a lot of Tennesseeans in that plant if it's built in Marion."

Mitch Chandler, a spokesman for the Arkansas Department of Economic Development, said the state considers Memphis a strong partner in its efforts but acknowledged the city might not openly campaign against another Tennessee city.

"In this particular occasion, we can understand why they may not be as vocal as they were in 2002," Chandler said, adding that, behind the scenes, "Something tells me they're pulling for us."

Fogleman said Toyota, if its finalists are Chattanooga and Marion, has put Bredesen in an enviable position.

"They're in the catbird seat," he said. "His state will be helped if either site is chosen."

Associated Press writers Beth Rucker in Nashville, Tenn., and Andrew DeMillo in Little Rock contributed to this report.

Grains Mixed, Soybeans Down

CHICAGO (AP) -- Soybean futures declined while grains were mixed in early activity Friday on the Chicago Board of Trade.

Wheat for March delivery rose 1 cent to $4.58 a bushel; March corn fell 3/4 cent to $3.99 a bushel; March oats rose 3/4 cent to $2.50 3/4 a bushel; March soybeans fell 5 1/4 cents to $7.38 1/2 a bushel.

Beef futures increased while pork was mixed in early trading on the Chicago Mercantile Exchange.

April live cattle rose .25 cent to 95.12 cents a pound; March feeder cattle rose .38 cent to 99.25 cents a pound; April lean hogs rose .43 cent to 66.55 cents a pound; March pork bellies fell .07 cent to $1.0350 a pound.

Shuffle Master Falls on Contract End

NEW YORK (AP) -- Shares of Shuffle Master Inc. slid Friday, a day after the gaming supplies company said one of its units was ending a development contract with Elixir Group Ltd., a subsidiary of Melco International Development.


The pact, signed in April 2006, created an alliance that would have allowed Shuffle Master's Australian subsidiary Stargames Corp. and Elixir to develop localized gaming technologies for legalized gaming jurisdictions in Asia. It also gave Stargames the exclusive distributorship of existing gaming products to specific Asian customers.

Banc of America Securities analyst David Vas dropped his price target by to $26 from $27 on the news.

"Based on Shuffle Master's small penetration into non-U.S.-owned Macau casinos, plus Elixir's equity stake in small competitor Vending Data, we had a hunch the relationship was troubled," he said in a client note.

However, analyst Bill Lerner of Deutsche Bank said in a note that the company's video table market share has been disappointing since the pact was signed, and its end should help Stargames add back to its earnings.

Joel Simkins, an analyst with Prudential Equity Group, said he thinks Shuffle Master will land on its feet.

"While we are somewhat disappointed by the announcement, we believe Shuffle Master has strong relationships with many major players in Asia, including Las Vegas Sands, Wynn Resorts, MGM Mirage and Genting," he wrote in a client note.

The company may also benefit from Stargames' relationships and sales infrastructure in the region, he added.

Shares of Shuffle Master dropped $1.87, or 6.9 percent, to $25.10 in morning trading on the Nasdaq. The shares have traded between $22.65 and $40.75 over the past 52 weeks.

S&P Maintains Alliant Energy's Ratings

NEW YORK (AP) -- Standard & Poor's Ratings Services said Friday that Alliant Energy Corp.'s recent increase in its stock repurchase program will not affect its ratings or outlook.

The Midwestern utility operator earlier this week boosted its program by $200 million, giving it a total authorization of $295 million. The decision followed announcements for plans to build large coal power plants, raise its dividend and sell Iowa transmission assets.

"Despite these developments, Standard & Poor's still expects the company to maintain adequate credit metrics over the short to intermediate term," the credit-rating agency said in a statement.

The company now has a "BBB+" rating.

Alliant Energy shares rose 18 cents to $38.92 on the New York Stock Exchange.

Redskins' Snyder Buys Johnny Rockets

McLEAN, Va. (AP) -- Washington Redskins owner Daniel Snyder said Friday he will buy Johnny Rockets, the 1950s-style diner chain that features burgers, fries and a wait staff that dances and sings to oldies tunes.


Snyder's investment arm, RedZone Capital Fund II, will acquire the Lake Forest, Calif.-based chain, which operates more than 200 restaurants nationwide. Terms of the purchase were not released.

The move is the latest push into entertainment-themed businesses by Snyder, who made a fortune in marketing and operates the NFL's most profitable team.

In 2005, he took over amusement park operator Six Flags Inc., which has since embarked on an aggressive marketing campaign to revive sagging attendance. Last year, Snyder agreed to finance actor Tom Cruise's production company after it was dropped by Paramount Pictures.

Snyder said in a statement that he expects Johnny Rockets to grow significantly in the coming years. That includes plans for a series of smaller Johnny Rockets Express restaurants that will serve the chain's staple of burgers, fries and milkshakes. They will be cheaper too, with capital expenses of $300,000 compared to $750,000 for a full restaurant.

"There's no reason we shouldn't expect see 1,000 Johnny Rockets locations within the next five years," Snyder said in a statement.

Johnny Rockets was founded in Los Angeles in 1986 and tries to reclaim the 1950s heyday of diners and drugstore malt shops. Every half hour, waiters and waitresses dressed in white with black bow ties and paper hats groove to classic tunes. Juke boxes on the tables cost a nickel.

The chain has grown fast, expanding at a rate of 20 percent each year. It now operates in 29 states and nine countries, with eight restaurants aboard Royal Caribbean cruise ships.

Nasdaq Again Fails in Bid for LSE

LONDON (AP) -- The Nasdaq Stock Market Inc. failed for the second time in a year to win control of the London Stock Exchange PLC, revealing Saturday that its $5.3 billion hostile bid had been spurned by the British bourse's shareholders.


Nasdaq, which abandoned its first attempt at the LSE several months ago, had extended its current offer by two weeks in an attempt to win over more shareholders -- a move that proved fruitless.

In the end the New York-based exchange received acceptances worth just 0.41 percent of the LSE's ordinary shares in return for its $24.35 per share bid.

Even added to the 28.75 percent share holding Nasdaq built up by buying in the market in recent months, that remained well short of the 50 percent it needed to begin taking control.

Nasdaq is now barred under British takeover law from renewing its bid for a year and declined to say Saturday what it planned to do with the 29.16 percent stake in the London bourse it retains.

Reflecting the increasingly acrimonious battle between the two exchanges in recent months, Nasdaq stood by its claims the LSE was overvalued, while the London exchange's board said it looked forward to going about its business "without the distraction of ill-considered approaches which fail to understand the value of the business."

Nasdaq was just one of many suitors for the LSE in recent years -- Deutsche Boerse AG and Australia's Macquarie Bank Ltd. made formal approaches while Euronext NV cited interest without naming a price -- amid increasing pressure on stock exchanges to find merger partners so they can compete globally.

The New York Stock Exchange is due to close its $14.3 billion acquisition of Euronext, the operator of the Paris, Amsterdam, Brussels and Lisbon exchanges, within the next couple of months. The NYSE also recently took a major stake in India's largest bourse and signed a broad agreement with the Tokyo Stock Exchange, the world's second-biggest financial market.

A combination of the Nasdaq and LSE would have created the world's second trans-Atlantic exchange with about 6,400 listed companies carrying a total market value of $11.8 trillion.

Nasdaq Chief Executive Robert Greifeld has previously indicated that Nasdaq may keep its stake in the expectation that the LSE's shares will fall. He has said Nasdaq would consider offering its technology to an LSE rival -- a consortium of banks known as Project Turquoise is planning a platform -- in a move that appears to be part of Nasdaq's efforts to drive down the exchange's share price.

"Nasdaq will continue to pursue other opportunities to build on its existing position as the world's largest electronic equities exchange and we look forward to maintaining our strong track record of creating shareholder value through our industry-leading business model and strategy," Greifeld said in a statement.

He added that Nasdaq's disappointment at losing its bid was "tempered by the knowledge that we remained true to our value case."

Greifeld has consistently argued that the stock has been vastly inflated in recent years because of cross-Atlantic takeover fever, claiming earlier this week that the LSE is misleading shareholders by basing its growth prospects on "self-serving and misguided peer group selection."

The LSE has almost tripled its share value from 450 pence two years ago, with Chief Executive Clara Furse winning praise in Britain for holding out against the failed suitors. The stock closed flat at 1,282 pence ($25) on Friday.

"The price was never quite right, and it didn't seem like the Nasdaq was willing to pay a large premium for control," said David Easthope, an analyst with consulting firm Celent. "The London Stock Exchange realized there wasn't any urgency to being acquired, and this stalemate will be on for quite a bit unless the Nasdaq realizes they need the LSE and are willing to pay more."

Easthope added that Greifeld had built up expectations about a move into Europe so far "that it would be a disappointment if he abandoned Europe altogether."

"It is apparent there is great growth potential in Europe with accelerated volumes and very strong trading potential," Easthope added.

AP Business Writer Joe Bel Bruno in New York contributed to this report.

London Stock Exchange, http://www.londonstockexchange.com

Nasdaq, http://www.nasdaq.com

G-7 Presses China on Yuan Flexibility

ESSEN, Germany (AP) -- China came under renewed pressure Saturday from the Group of Seven to make its yuan more flexible, while Japan emerged from the meeting without a public scolding, despite criticism beforehand that its weakened yen was hurting other economies.


The finance ministers and central bankers from the world's wealthiest nations also called for more vigilance on the rising power of hedge funds, but favored a conciliatory approach toward the industry. They also said major developed economies were showing solid growth, and that added that energy efficiency and diversification -- particularly renewable forms -- remained a priority.

China's tight control of its currency and huge trade surpluses have raised concerns in the West. The G-7 lauded China's commitment to "rebalance growth," but called on the country to let the yuan have greater flexibility in responding to market movements.

"Over the last two days, we discussed ways to keep the global economy growing in a balanced way, including stimulating domestic demand in Japan and Europe and pressing for greater exchange-rate flexibility in China," U.S. Treasury Secretary Henry Paulson said.

When the G-7 formed, comprising Britain, Canada, France, Germany, Italy, Japan, and the United States, China was an insular, closed communist state. In the three decades since, China's growth has exploded as it embraces elements of capitalism.

China has amassed more than $1 trillion in foreign currency reserves as it buys dollars to control the value of the yuan -- a practice G-7 finance ministers have criticized in the past.

Ahead of the meeting, Japan had faced complaints from the euro zone that its weakening yen was giving the country an unfair competitive edge, making Japanese goods cheaper than those in the EU.

But Japan was left out the G-7's declaration on foreign currency issues, while China was mentioned by name.

"In emerging economies with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments will occur," the ministers said.

Japan was defended by its G-7 partners, including euro zone politicians.

German Finance Minister Peer Steinbrueck said Japan made it clear during the talks "that the Japanese economy is on a recovery path and that exchange rates should reflect this."

Luxembourg Prime Minister Jean-Claude Juncker, who leads the informal group of finance ministers from the 13 countries that use the euro, said Japan's economic recovery was solid and that his "Japanese colleagues did express the feeling that the exchange rate should express the economic fundamentals."

"Japan is moving out of long and difficult deflationary circumstances," International Monetary Fund Managing Director Rodrigo de Rato said Saturday. "The best thing Japan can do for the global economy is to keep growing."

Germany has made dealing with hedge funds a priority its EU and G-8 presidencies this year given their rising influence over companies. Finance Minister Peer Steinbrueck has said the country wants G-7 nations and EU countries to try to pre-empt any risks that speculative hedge funds may pose to the global financial system.

The high-risk, largely unregulated and secretive investment pools have traditionally been the investment domain of the wealthy but have become popular with pension funds, life insurance companies and small investors looking for high returns.

The G-7 ministers said the group would talk with fund operators and the private sector and ask the Financial Stability Forum, a gathering of financial ministers, regulators, institutions and others, to reassess the impact of the funds on global markets.

Looking at energy concerns, the G-7 members said that global inflationary pressures have lessened, in part because of lower energy prices, but said they would continue to keep an eye on consumer prices.

They also said that finding, and using, more energy efficient methods, along with diversifying sources, had become an increasing concern.

The G-7 members were hopeful the Doha round of free trade talks would resume.

"We remain committed to resisting protectionist sentiment and fully support the relaunch of the Doha trade negotiations," they said in the statement.

Oil Companies Discuss Energy Challenges

HOUSTON (AP) -- With dwindling oil supplies, pollution concerns and the ever-present threat of gas prices soaring again, talk of new and better ways to fuel our cars, heat and cool our homes, and power our factories has never been greater. What's more, the conversation is emanating increasingly from a source that's been surprisingly quiet until recently -- the oil companies themselves.


When some of the industry's top executives gather in Houston next week to discuss global energy challenges, finding new and more effective ways to produce oil and gas -- as well as alternatives to fossil fuels -- will dominate the discussion.

And, as the year progresses, expect to see industry leaders -- including the chiefs of ConocoPhillips and Royal Dutch Shell PLC's U.S. division -- speaking in cities across America in an unprecedented campaign to educate consumers on energy related issues and discuss topics such as ethanol and renewable fuels. It's also an opportunity for the companies to polish their images.

Why now? The reasons are varied, but increased public and congressional scrutiny of oil companies because of up-and-down gasoline prices and record profits certainly is a factor. The companies' own bottom lines also play a key role: The cost of finding and tapping new oil and gas reserves is on the rise while the worldwide appetite for energy is only getting bigger.

"There's never been as much effort going into technological innovation across the whole energy industry as we're seeing today," said Daniel Yergin, chairman of Cambridge Energy Research Associates, a consultancy, and author of "The Prize," the Pulitzer Prize-winning history of the oil industry.

At CERA's annual weeklong conference that begins Monday, dozens of the industry's heaviest hitters -- the chairmen of Exxon Mobil Corp. and Chevron Corp. and a top OPEC official, among them -- will discuss topics such as the tricky balance of supply and demand and initiatives to develop new sources of energy.

Already, the discourse is in full swing across the country, led by some unlikely figures.

John Hofmeister, head of Royal Dutch Shell's U.S. arm, and James Mulva, ConocoPhillips' chairman and chief executive, are taking part in separate national speaking tours with other representatives of their companies, talking and listening at town hall meetings in places like Edwardsville, Ill., and Little Rock, Ark.

Outlining his company's 35-city tour in Houston recently, Mulva acknowledged that he and others have traditionally done a poor job of conveying to the public how their businesses operate, the challenges they face, the advances they're making.

Often, consumers' main connection with oil companies comes from filling up their vehicles or, recently, reading headlines of record profits. For example, Exxon Mobil this month shattered its own record for the largest annual profit by any U.S. company, bringing in $39.5 billion. And ConocoPhillips reported its best-ever full-year earnings, $15.5 billion for 2006.

But what folks probably don't know, Mulva said, is U.S. oil companies have invested $11 billion in North America on renewable and other forms of energy in the past five years.

Still, the task of weaning Americans and the rest of the world off fossil fuels will be monumental and lengthy. At present, renewable energy sources such as wind and solar supply only about 6 percent of America's energy needs, according to the federal government's Energy Information Administration. That figure is expected to grow only to about 7 percent in the next 20 years, the EIA forecasts, meaning fossil fuels will still carry the bulk of the load.

Mulva said all types of efficient energy sources are needed, but market forces and consumer preferences, not federal mandates, should determine how they're used.

Mulva called President Bush's proposal for expanding ethanol use to reduce gas consumption "very well motivated," but he said industry leaders "want a seat at the table" when state and federal officials set standards for the use and development of alternative energy sources.

"We believe very strongly the best way of meeting those metrics is to determine what they are and then let the industry ... come up with the resources and plans to meet those, (rather) than have mandates saying specifically, 'You have to do it this way and that," he said.

Oil companies already are investing heavily in alternatives and new ways to get oil and gas out of the ground more easily and cheaply.

BP PLC, which earned $22 billion in 2006, says it plans to spend $8 billion over the next decade developing alternative energy using wind, hydrogen and other means. Its alternative energy arm, created in 2005, is slated this year to begin building wind-powered plants that generate carbon-free electricity in California, Colorado, North Dakota and Texas.

At the same time, Shell is testing technology that involves drilling holes in fields and inserting electric heaters to gradually heat rock over long periods of time, causing the trapped organic matter -- kerogen, in this case -- to be released as oil and gas. The process is more environmentally sensitive than traditional drilling.

Yergin said another clear indication of the rising interest in cleaner and more efficient energy is growing investment by venture capitalists. Last year, venture capital investments in industrial and energy deals more than doubled from the year before to $1.8 billion, according to figures from PricewaterhouseCoopers, Thomson Financial and the National Venture Capital Association.

About 40 percent of that money was earmarked for alternative energy projects.

"I've taken to calling it 'the great bubbling,'" Yergin said. "Some of it is going to lead to very major changes."

John Parry, a senior analyst at energy consulting firm John S. Herold Inc., said it's no wonder much of the emphasis at big oil companies on exploring alternative energy sources dates to the past decade or so.

In the past 10 years, he said, several industry mergers and higher oil prices have given the big players the money to pursue such endeavors -- investments that weren't feasible before.

"If you looked at a company's liquidity 10 years ago, and they said they were going to put $1 billion in alternative energy, their stock would have collapsed," Parry said. "No one saw the wisdom of that. Now, we can see certain technologies that begin to make some sense."

TrimSpa Moving on Without Anna Nicole

NEWARK, N.J. (AP) -- Officials from the weight-loss supplement company whose ads featured the late Anna Nicole Smith said Saturday future ads will focus on ordinary people.

In a statement issued Saturday night, TrimSpa Chief Executive Officer Alex Goen said that while Smith's dramatic weight loss from the product had "helped to catapult the brand," he said its success "is not simply the result of Anna Nicole Smith."


Smith died suddenly on Thursday at 39. No cause of death has been determined.

The company will now rely on its less-famous customers as spokespeople, people who TrimSpa President Tony Azzizzo described in the statement as "your neighbors, friends, family members."

Azzizzo said the brand "now has thousands of successful weight loss spokespersons, albeit less heralded. Their weight loss experience is no less celebrated for them as Anna's was to the world."

TrimSpa has taken heat for some of their ads in the past. Earlier this month, Smith and TrimSpa were named in a class-action lawsuit alleging their marketing of a weight-loss pill is false or misleading. The Federal Trade Commission also recently announced the company would pay $1.5 million to settle allegations that the company's weight-loss claims were unsubstantiated.

Macau Mogul Hits Back at Gaming Giants

MACAU (AP) -- Stanley Ho once dominated almost everything in Macau, the Chinese casino city that is overtaking the Las Vegas Strip as the world's biggest gambling center.

The lanky 85-year-old billionaire owned all of Macau's casinos, much of the land, its best hotels and even the fleet of high-speed ferries that shuttle high rollers to the former Portuguese enclave on China's southern coast.


But Ho lost his casino monopoly four years ago. Now his 17 casinos must compete with many of the biggest names in the game, like Wynn Resorts Ltd. and Las Vegas Sands Corp. As the brash Americans scrambled to build shiny casinos, Ho grumbled and plotted his new strategy.

On Sunday, Ho will punch back with his biggest project in 30 years. His new flagship casino opens in the $384 million Grand Lisboa Hotel, a gold tower with 430 rooms and a top designed to look like a giant lotus flower.

The casino will have to compete in the new Vegas-style Macau that Steve Wynn and the Sands' Sheldon Adelson hope to build: lots of bigger, glitzier casinos, replete with glamorous boutiques, fine dining, upscale theme parks, convention halls and shows.

The big question is whether Ho's company and his casinos can measure up after running nearly 40 years as with no competition. Some customers have long complained the service was surly, the carpets worn and the gaming halls smoky.

"The problem with the old Macau is that the casinos don't even treat you like a guest," said Taiwanese tourist Johnny Chou. "The people there really have to change their way of thinking."

For decades, Ho has been one of the most colorful and prominent figures in Macau and neighboring Hong Kong. He has 17 children by four women he calls "wives." Despite his age and thinning hair, he remains an avid ballroom dancer and is always up for lively banter with reporters. But he declined several interview requests by The Associated Press.

Ho's life story has become an urban myth. He was born into a wealthy Hong Kong family that went broke during the Depression, forcing him to start from scratch at a trading firm in Macau.

He eventually lined up enough cash to win the bid for Macau's gaming franchise with his business partners in 1962. Today, he's ranked 84th on Forbes' 100 richest people in the world.

A large part of that fortune was made in Ho's flagship, called the Casino Lisboa, the iconic heart of gaming in Macau. The old Lisboa and Ho's other dated casinos belong to the Macau before the Americans arrived in the former Portuguese enclave, which returned to Chinese rule in 1999.

Now, Macau appears to have become the world's No. 1 gambling center. Last year, its gambling revenue jumped 22 percent to $6.95 billion. The Las Vegas Strip's revenue hit a record $6.69 billion but it wasn't enough to stay ahead of Macau, a Nevada state report said Friday.

Many believe Ho's empire badly needs a management overhaul and up-to-date facilities to catch up with the times. It will also need to adapt to changing gaming trends by relying less on hardcore "VIP gamblers," who are recruited in groups from mainland China and other parts of Asia by junkets that provide food, transportation and hotel rooms.

Analysts predict that revenue from high rollers will soon be overtaken by casual, mass-market gambling like slot machines -- a market likely dominated by American operators.

The company that operates Ho's casinos, the Sociedade de Jogos de Macau, or SJM, is still dominant, controlling 17 out of Macau's 24 casinos. But the group's share will dwindle until it holds just one-fourth of the market by 2009, according to a JPMorgan forecast.

"SJM's main challenge is how to compete in the mass market. They certainly have an advantage in the VIP market, but beyond the Lisboa and other top two or three casinos, their casinos aren't very competitive," said Billy Ng, a JPMorgan research analyst.

SJM's director, Ambrose So, said the company is up for the challenge.

"Healthy competition is good for the industry overall, and we are ready for it," he said.

Lawmakers Hold 'Tele-Town Hall Meetings'

WASHINGTON (AP) -- On a recent weeknight, Kansas Rep. Jerry Moran spoke to nearly 10,000 of his constituents at once -- from the comfort of his Capitol Hill office.

Technology that can connect thousands of people on a single phone call is letting Moran and other members of Congress connect with voters like never before.


"I'm not trying to replace the time I spend in Kansas," said Moran, a Republican. "But this kind of technology allows me to tie my district together in a way that 69 individual town hall meetings does not."

A "tele-town hall meeting" lets lawmakers call up to 35,000 households in their district at random by using a special automated dialing system. A recorded voice tells those who answer to stay on the line if they want to participate in the meeting.

More than 50 members of Congress, including a few senators, have tried the technology over the past year, said Rodney Smith, founder of Washington, D.C.-based Tele-Town Hall LLC.

"It's like listening to a party line," Smith said. "People very much enjoy the interaction, the fact that a congressman would call them, the fact that they get a chance to ask a question."

Between 200 and 1,000 constituents stay on for an extended portion of a typical call. Thousands more drift on and off the line as the system dials 6,000 numbers per minute. As many as 12,000 people can be on the line at one time.

Listeners can participate too. Press the pound key and you can get in line to ask a question. A lawmaker can also poll the audience on a topic and listeners can press numbers to vote.

"The technology is terrific because it allows me to have conversations with constituents in a way that, prior to this, was simply impossible," said Rep. John Kline, R-Minn. He has held eight tele-town hall meetings since hearing about the concept from Rep. Dan Lungren, R-Calif., who was the first lawmaker to try the service.

The lawmaker conducting the call can track the names and addresses of everyone lining up to ask questions on a computer screen through a special Web site.

About a half hour into Moran's most recent tele-town hall meeting, the screen shows 946 households on the call and 230 waiting to ask a question. He sounds like a radio talk show host as he scrolls through the list of those who want to talk, looking for a sampling of residents from different parts of his district.

"Let's go to Hutchinson, is this a caller from Hutchinson?" Moran asks.

He has asked his listeners to let him know what they think about President Bush's plan to send more troops to Iraq. The computer screen keeps a running total of those who have pressed the number one for yes and two for no. By the end of the call, the tally is 479 in favor and 298 against.

Tele-Town Hall founder Smith, a former political fundraiser, said he first tried the concept 10 years ago, but at that time the phone system could not handle the call volume. Today, he has 22 computers located at strategic sites in New York City and Las Vegas that can handle more than one meeting at a time.

The service has a patent pending and Smith just finished a business plan to see if he can get outside financing to help boost his customer base.

The service costs $2,500 for the first 25,000 answered calls, those either picked up by a live person, or go to an answering machine or voice mail. Lawmakers pay for the service with the same funds used to set up local town hall meetings.

At one of those usual get-togethers in his suburban Minneapolis district, Kline said he can expect between 25 and 100 people to show up. The chance to draw thousands of constituents without having to advertise lets lawmakers broaden their reach beyond political activists and interest groups that can dominate local meetings, he said.

"You get to hear things from people who probably wouldn't pack up and head down on a winter night in Minnesota to come to a town hall meeting, but they will sit in their kitchen and happily participate," Kline said.

Moran, whose district covers 69 counties over more than 55,000 square miles, said he likes how the tele-town hall can bring people together from all over the state.

Residents in Liberal, Kan., in the southeast corner of the state, can hear what people from Sabetha, in the far northeast corner have to say.

At the end of the meeting, anyone who stays on the line can leave a voice mail with comments that will later be e-mailed to Moran's office as audio files. His staff will listen to every message and respond with an e-mail or follow-up phone call.

Not everyone is impressed by the new technology.

Curtis Gans, director of the Committee for the Study of the American Electorate, guessed that most of the callers who stay on the line are more politically active than those who drop off.

"It's not a revolution," Gans said. "As it takes hold and people talk about it, it may bring in people beyond the activist community, but that hasn't been proved yet."

Tele-town Hall, LLC: http://teletownhall.com/

Tip-Seeking Farmers Swarm Online Forums

MARTINSVILLE, Ohio (AP) -- Tucked away in the den of his 127-year-old farmhouse, Ed Winkle huddles over his computer. The screen's soft glow lights up his eyeglasses, reflecting messages about tractors, corn hybrids and crop insurance.


Winkle is checking the latest postings on his favorite Internet farm forum. Advice from fellow farmers around the country has enabled him to increase his corn and soybean production, better market his crops, learn how to rebuild engines and get good tires for his tractor.

Online message boards and chat rooms are replacing rural coffee shops and feed mills as places for farmers to talk farming and trade tips as more of rural America goes online.

"You get the best thinkers in agriculture," Winkle said of the forums. "You're mixing such a diverse group of people -- from different areas, from different backgrounds, different experiences, different ways of farming."

Fifty-one percent of U.S. farms have Internet access, according to a July 2005 report by the U.S. Department of Agriculture, up from 48 percent in 2003. More than two-thirds of them, however, still use dial-up modems to connect.

The popularity of online farm forums has grown as well, said Mack Strickland, an agricultural engineer at Purdue University and farm-computer expert. Some forums claim to have as many as 30,000 registered users.

The Internet division of Farm Journal Media, http://www.agweb.com, says user traffic doubled between October 2005 and October 2006, with the forums on the site enjoying similar growth. Traffic on the Des Moines, Iowa-based http://www.agriculture.com has increased 20 percent to 25 percent over the past year, said editor John Walter. Both are free sites supported by ads.

Enthusiasts say the forums have improved farm production and saved farmers precious dollars by helping them avoid costly mistakes in planting, fertilizing, equipment buys and maintenance. And forums have enabled farmers -- many of them miles from their nearest neighbor -- to educate each other and build community.

"We all like to talk to folks like ourselves who have the same problems," said Stan Ernst, a marketing instructor at Ohio State University's department of agricultural economics. "We have so much riding on many of our decisions economically that you've got to find people with experience."

A farmer can spend as much as $160,000 on a combine, for example. If it breaks down during a critical harvest time, that could mean the difference between a profit and a loss.

Walter said the average visitor to http://www.agriculture.com spends 11 minutes at a time on the site.

"It's enough time to have a cup of coffee and a conversation and learn something," he said. "It's just rearranged who their neighbors are in a sense. You can't help but think that has changed farming to some degree."

Rural America has lagged behind the cities in Internet usage -- especially broadband -- because wiring the population-rich cities is more profitable and wiring the countryside more expensive due to long distances and natural barriers.

Now, farmers and existing rural businesses are becoming more reliant on the Internet to be competitive, and rural communities are becoming more aggressive in seeking Internet access. They see it as a way to attract white-collar jobs, and urban dwellers who have moved to the country are demanding it.

Paul Butler, who grows corn and soybeans on 260 acres in Macon, Ill., returned to farming four years ago after 25 years in the computer business. He doubts he would have made it without online advice from fellow farmers.

"I would have made a lot of expensive mistakes," said Butler, 39, who has a broadband connection. "Purchasing seed is a pretty complicated decision. It was nice to have 20 unbiased people that weren't selling seed that could give me an opinion on it."

Eric Neer, 24, of Davenport, Iowa, discovered farm forums from fellow students when he was in college.

Although he seldom posts a question, Neer -- who works for a farm equipment manufacturer -- devours the information he sees on precision farming, using the forums to shop for equipment and information about tractors and combines that are steered by computers linked to global positioning satellites.

Machinery -- the universal language of farmers -- is a hot topic in farm forums. So is when best to take crops to market to get the best price. Sometimes the talk veers away from pure farming.

In a recent exchange on http://www.newagtalk.com, a popular farm forum, an Illinois farmer complained that the starter on his pickup truck was acting up. A fellow farmer replied that the electric solenoid atop the starter was probably worn out and the contact sticking in the closed position.

"I would put a whole new starter on it," he wrote. "Fix it now before it ruins the flywheel teeth."

An Ohio farmer wondered if he should replace his fuel-oil furnace with a geothermal heating system. The idea got high marks from a farmer in Indiana who said a geothermal system leaves no smell or residue and makes less noise. Then he offered tips on insulation and heat distribution.

Farmers have to decide themselves whether the advice they get is sound. Agriculture.com's Walter said he tries to screen out the hokum, blowhards and occasional shyster. Purdue's Strickland said some users give opinions not based on fact or research.

Winkle, 57, became a believer when a tip from an Iowa farmer prompted him to change his no-till farming technique. Winkle increased his yield by about 30 percent.

During the winter, he spends about two hours a day wading through the forums from his farm, about 40 miles northeast of Cincinnati. Since April, he has posted 1,738 messages on one forum alone.

Some farmers still rely on the neighbor they know.

"You can get some good ideas from people in other states, but they're dealing with different circumstances," said Jim Meimer, who raises corn, soybeans and wheat on 900 acres.

Meimer, 28, goes online to get market data but prefers to get advice from friends and neighbors. He often sees them at the feed store and fertilizer plant when he goes into nearby Mount Gilead, Ohio, to pay bills.

Glen Feichtner, 48, who raises 300 head of cattle near New Washington, Ohio, prefers to get his tips from fellow farmers at the stockyard and grain elevator because he knows they have been successful.

"I get face-to-face interaction," he said. "I know these people. I know their story."

Tip-Seeking Farmers Swarm Online Forums

MARTINSVILLE, Ohio (AP) -- Tucked away in the den of his 127-year-old farmhouse, Ed Winkle huddles over his computer. The screen's soft glow lights up his eyeglasses, reflecting messages about tractors, corn hybrids and crop insurance.


Winkle is checking the latest postings on his favorite Internet farm forum. Advice from fellow farmers around the country has enabled him to increase his corn and soybean production, better market his crops, learn how to rebuild engines and get good tires for his tractor.

Online message boards and chat rooms are replacing rural coffee shops and feed mills as places for farmers to talk farming and trade tips as more of rural America goes online.

"You get the best thinkers in agriculture," Winkle said of the forums. "You're mixing such a diverse group of people -- from different areas, from different backgrounds, different experiences, different ways of farming."

Fifty-one percent of U.S. farms have Internet access, according to a July 2005 report by the U.S. Department of Agriculture, up from 48 percent in 2003. More than two-thirds of them, however, still use dial-up modems to connect.

The popularity of online farm forums has grown as well, said Mack Strickland, an agricultural engineer at Purdue University and farm-computer expert. Some forums claim to have as many as 30,000 registered users.

The Internet division of Farm Journal Media, http://www.agweb.com, says user traffic doubled between October 2005 and October 2006, with the forums on the site enjoying similar growth. Traffic on the Des Moines, Iowa-based http://www.agriculture.com has increased 20 percent to 25 percent over the past year, said editor John Walter. Both are free sites supported by ads.

Enthusiasts say the forums have improved farm production and saved farmers precious dollars by helping them avoid costly mistakes in planting, fertilizing, equipment buys and maintenance. And forums have enabled farmers -- many of them miles from their nearest neighbor -- to educate each other and build community.

"We all like to talk to folks like ourselves who have the same problems," said Stan Ernst, a marketing instructor at Ohio State University's department of agricultural economics. "We have so much riding on many of our decisions economically that you've got to find people with experience."

A farmer can spend as much as $160,000 on a combine, for example. If it breaks down during a critical harvest time, that could mean the difference between a profit and a loss.

Walter said the average visitor to http://www.agriculture.com spends 11 minutes at a time on the site.

"It's enough time to have a cup of coffee and a conversation and learn something," he said. "It's just rearranged who their neighbors are in a sense. You can't help but think that has changed farming to some degree."

Rural America has lagged behind the cities in Internet usage -- especially broadband -- because wiring the population-rich cities is more profitable and wiring the countryside more expensive due to long distances and natural barriers.

Now, farmers and existing rural businesses are becoming more reliant on the Internet to be competitive, and rural communities are becoming more aggressive in seeking Internet access. They see it as a way to attract white-collar jobs, and urban dwellers who have moved to the country are demanding it.

Paul Butler, who grows corn and soybeans on 260 acres in Macon, Ill., returned to farming four years ago after 25 years in the computer business. He doubts he would have made it without online advice from fellow farmers.

"I would have made a lot of expensive mistakes," said Butler, 39, who has a broadband connection. "Purchasing seed is a pretty complicated decision. It was nice to have 20 unbiased people that weren't selling seed that could give me an opinion on it."

Eric Neer, 24, of Davenport, Iowa, discovered farm forums from fellow students when he was in college.

Although he seldom posts a question, Neer -- who works for a farm equipment manufacturer -- devours the information he sees on precision farming, using the forums to shop for equipment and information about tractors and combines that are steered by computers linked to global positioning satellites.

Machinery -- the universal language of farmers -- is a hot topic in farm forums. So is when best to take crops to market to get the best price. Sometimes the talk veers away from pure farming.

In a recent exchange on http://www.newagtalk.com, a popular farm forum, an Illinois farmer complained that the starter on his pickup truck was acting up. A fellow farmer replied that the electric solenoid atop the starter was probably worn out and the contact sticking in the closed position.

"I would put a whole new starter on it," he wrote. "Fix it now before it ruins the flywheel teeth."

An Ohio farmer wondered if he should replace his fuel-oil furnace with a geothermal heating system. The idea got high marks from a farmer in Indiana who said a geothermal system leaves no smell or residue and makes less noise. Then he offered tips on insulation and heat distribution.

Farmers have to decide themselves whether the advice they get is sound. Agriculture.com's Walter said he tries to screen out the hokum, blowhards and occasional shyster. Purdue's Strickland said some users give opinions not based on fact or research.

Winkle, 57, became a believer when a tip from an Iowa farmer prompted him to change his no-till farming technique. Winkle increased his yield by about 30 percent.

During the winter, he spends about two hours a day wading through the forums from his farm, about 40 miles northeast of Cincinnati. Since April, he has posted 1,738 messages on one forum alone.

Some farmers still rely on the neighbor they know.

"You can get some good ideas from people in other states, but they're dealing with different circumstances," said Jim Meimer, who raises corn, soybeans and wheat on 900 acres.

Meimer, 28, goes online to get market data but prefers to get advice from friends and neighbors. He often sees them at the feed store and fertilizer plant when he goes into nearby Mount Gilead, Ohio, to pay bills.

Glen Feichtner, 48, who raises 300 head of cattle near New Washington, Ohio, prefers to get his tips from fellow farmers at the stockyard and grain elevator because he knows they have been successful.

"I get face-to-face interaction," he said. "I know these people. I know their story."

Argentina Economy Recovers From Meltdown

BUENOS AIRES, Argentina (AP) -- Five years after Argentina's economy melted down, triggering food riots, supermarket lootings, devaluation and debt default, Maria Elena Lopez is still scavenging in the streets for recyclable paper.


But today there's less competition and it takes less of her day to amass $5 worth of junk, pushing a creaky wooden cart through an upscale Buenos Aires suburb in search of paper, cardboard and anything else she can sell.

Lopez, 34, is at the bottom end of a remarkable economic recovery that is generating jobs, boosting exports and reviving businesses. But it still has a long way to go. "Five years later, it's definitely better," says Lopez, wearing a baseball cap and sweating. "But it's not great."

Today the ranks of the scavengers, or "cartoneros," have thinned as South America's second largest economy rebounds at a blistering pace, growing more than 8 percent year after year.

Lopez now has time to earn extra money baby-sitting, while two brothers idled by the crisis have gone back to low-paying jobs, one in a car wash, the other in a tire repair shop.

It's now rare to see desperate families Dumpster-diving for rotting vegetables, and those classified as poor have gone from more than 50 percent of the population of 37 million to about a third.

Argentina has posted 47 months of uninterrupted growth and has already renegotiated repayment of $100 billion of public debt after the largest default the world has known.

The biggest South American farm nation after Brazil, Argentina exported its way out of the crisis, registering a record $46.5 billion in sales led by soybeans, corn and wheat from the fertile Pampas in 2006.

The Argentine peso was pegged 1-to-1 with the U.S. dollar for more than a decade until the recession and mounting debts sparked a run on banks by depositors in 2001, setting up the currency's freefall.

Today, the government pegs the peso at three to the dollar to boost tourism, exports and construction. The cheap exchange rate also keeps prices lower in dollar terms, and some fixed costs like utility rates remain frozen by the government at 2002 prices.

President Nestor Kirchner, elected in March 2003 after four others were toppled by the crisis in the space of just three weeks, also strong-armed creditors worldwide, forcing them to accept repayment of less than 30 cents on the dollar. And he made early repayment of some $9 billion owed the International Monetary Fund, using tax dollars reaped from the export windfall.

Kirchner is a friend of Venezuelan President Hugo Chavez and the Argentine's election was seen as another win for a resurgent Latin American left. He is heavily favored to win-relection in October if he decides to run.

Yet many Argentines remain skeptical that the good times will last. One reason for their lack of faith: Credit programs that shriveled in the crisis haven't bounced back, squeezing first-time homebuyers and small businesses. Interest on home mortages has soared above 12 percent.

Critics complain about the unorthodox price controls Kirchner imposed to squelch inflation. Last year he banned most beef exports for six months, hoping to keep enough red meat at home to ensure high supplies and low prices for this key component of the consumer price index. And now he has slapped new taxes on soybean exports to finance subsidies of bread and other foodstuffs on the index.

Such moves are manageable when the economic conditions at home and abroad are working in Kirchner's favor, says political analyst Rosendo Fraga. "It will be easier to see how things play out when the winds of the world economy blow against him."

Perhaps the biggest complaint is wages, which remain sharply devalued. While the jobless rate is down by half to about 10 percent today, many workers say cost-of-living adjustments are long overdue.

Argentina's largest labor confederation wants a 30 percent wage increase for millions of members. The talks start this month but protests have already begun: Some 200 unionized supermarket workers beat drums and shot firecrackers off outside the Labor Ministry this month.

Such developments leave Argentina's battered middle class, Latin America's largest, watching warily -- people such as Rogelio Perez, 67, who laid off 50 workers when his cookware factory disintegrated five years ago.

"It was chaos, just chaos," he said, recalling how Argentines traded Monopoly-like IOU money and bartered their appliances and silverware for food.

The devaluation eventually made Perez's glazed-clay dinner plates and coffee mugs competitive again against imports. So he sold his car, got a loan to buy a kiln, rented a warehouse and started over. As consumer demand picked up, he moved to a larger warehouse, but still operates on a much smaller scale than before the crisis, employing just a handful of workers, some of them his relatives.

He's struggling to find an affordable loan to expand again.

"There's far more demand than I can meet. But there's no affordable credit," he said.

Still, Buenos Aires is on the mend, as the skyline shows.

A former wharf district of rundown warehouses, which began booming before the crisis, is filling up with luxury apartments and office suites. Despite the credit difficulties, investors are raising new skyscrapers. And several industries are booming with new opportunities.

Horacio Moschetto, who lobbies for shoe manufacturers, recalls how the overvalued peso made it hard to compete with 25 million pairs of Brazilian shoes flooding the Argentine market.

Argentine shoes are back, selling around Latin America and Europe, and the industry's work force has grown from 14,000 in 2001 to 52,000 today, Moschetto said. Now even Brazilian companies want to manufacture in Argentina because costs are lower.

"In 2001 we manufactured 33 million pairs of shoes and last year we made 88 million pairs. This kind of recovery, I know, is happening in many industries," Moschetto said.

In December 2001, just before the meltdown, protesting Argentines set ablaze a mock "Christmas tree" of cut-price Brazilian shoes, and Moschetto keeps it in mind: "That's something I still remember well."

S. Africa Minister Clashes With Farmers

STELLENBOSCH, South Africa (AP) -- The bucolic valleys that produce South Africa's best wines are also producing tension, with white farmers accused of forcing black workers from their homes.

Agriculture Minister Lulu Xingwana also has accused farmers of abusing and intimidating workers. Incensed landowners say Xingwana's allegations are exaggerated and risk stoking violence on farms and complicating the delicate path toward land reform.


The problems are not confined to the rolling vineyards and fruit farms of the Western Cape, but are also evident in the vast game and cereal farms elsewhere in the country.

"For a long time the issue of evictions and violations of workers' rights has not been on the agenda," Xingwana said in an interview.

"We must come up with a strategy to stop the evictions" she said were taking place "every day in every corner of our country."

A 2005 survey estimated that between 1994 and 2004, 942,303 people were evicted from their homes on farms -- which are often part of their employment package -- compared to 737,114 the previous decade. Some 2.9 million people worked on farms and 950,000 lived on them, it estimated.

Unlike in neighboring Zimbabwe, where white owners have been forced off the land by the government, in South Africa it is usually poor, illiterate blacks.

Martha Jonga, 62, worked for 40 years on a grape farm in De Doorns, a small village about 75 miles from Cape Town. She says in January she was given a week's notice to quit the three-room cottage she shared with her two grandchildren and move into a damp one-room shack near a dam.

"I feel very bad because I want to stay in my own home," she told a meeting of rural women attended by Xingwana on a wine estate near Stellenbosch.

Annelize Crosby, parliamentary liaison officer with AgriSA, the main commercial farmers union, says people like Jonga are entitled to stay in their homes as long-term occupiers. She says AgriSA tells all its members to abide by the law.

But farmers point out that, in a world of cutthroat competition, the cost of housing retired or sick workers is often prohibitive.

The Confederation of South African Trade Unions blames many of the evictions on the trend toward turning farms into luxurious golf estates, safari lodges and tourist accommodation in preparation for the 2010 World Cup.

"Ruthless, apartheid-era employers treat them (farm workers) little better than slaves, exploiting their labor for poverty wages and then throwing them out of their homes when they make demands for basic rights and a living wage," said labor union spokesman Patrick Craven.

White farmers still own an estimated 80 percent of South African farm land, down from 87 percent in 1994. Most analysts agree that the government will have an uphill struggle to achieve its target for black and mixed-race communities to own 30 percent of agricultural land by 2014.

The labor union has welcomed Xingwana's pledges to tackle abuses.

But Crosby said AgriSA was upset about Xingwana's "vague and unsubstantiated allegations."

"We feel the allegations are causing friction and giving farmers a bad name which is unwarranted," Crosby said.

AgriSA leaders -- as well as black farmers -- met with the minister Wednesday to smooth over their differences. Farmers said their "unsatisfactory relationship" was inflicting great damage on the sector.

Xingwana told them that she had never intended to accuse all farmers and believed that the "majority of the agricultural sector adhere to good farming practices," a statement said.

"However, the minister reiterated that there were still human rights abuses at the farms," and it was her duty to speak out about them, it said.

Xingwana reeled off examples she believes illustrate the mind set of farmers: The farmer who escaped with a fine and suspended sentence for shooting dead an 11 year-old-boy he claimed he mistook for a rabid dog; a farmer who shot a worker and said he thought it was a baboon; and the notorious case of a farmer who threw a former laborer alive into a lion breeding enclosure.

"I cannot apologize for the truth," said Xingwana, who took over the land affairs portfolio last year. Earlier, she earned a reputation for her outspokenness at the minerals and energy department when she slammed "lily white" mining companies.

Farmers point out that they, too, are victims of violence.

Since 1991, there have been more than 9,600 attacks against farmers, including 1,560 murders, according to statistics collected by AgriSA. South Africa has one of the highest overall murder rates, with about 50 people murdered per day, and farmers say they feel particularly vulnerable because they often live in isolated areas.

The tension over land may be adding to their insecurity.

Kenneth Eva, a manager on a fruit farm in KwaZulu-Natal, was bludgeoned to death last month as he delivered an ultimatum to 250 black "squatters" to leave the land. They had refused, saying it did not rightfully belong to the white owner.

Another farm manager, Desmond Sterley, was found dead with a single bullet in the back of his head on a stud farm near Worcester 75 miles from Cape Town late Monday.

Cosatu, the labor union, says such incidents are understandable given the daily humiliation inflicted on farm laborers and the snail's pace of land reform.

In the Western Cape, it has taken 10 years to redistribute 210,035 acres of land, according to Fatima Shabodien of the Women on Farms Program, which lobbies on behalf of the rural poor. To meet the 30 percent target, authorities will have to increase this to 123,550 acres per year, she says.

Shabodien and other activists say that if farmers are not prepared to compromise, they risk popular pressure for land grabs similar to those in neighboring Zimbabwe.

"Black South Africans have been too humble in the past," she said.

"Farmers don't seem to realize that they are painting themselves in a corner. They are not giving farm workers options."