Petrol strike threatens to cause chaos and hit economy in Italy

ROME (Reuters) – Italian petrol stations began a 60-hour strike late on Tuesday to protest against rising costs and falling profits, causing long queues as drivers rushed to fill up before pumps closed.

Hitting at the peak shopping period before Christmas, the strike comes at unwelcome time for retailers. Weak consumer spending has been a key factor in Italy‘s sluggish economy, which has been dipping in and out of recession since 2008.

“It is incredible, with all that petrol costs us nowadays, that they can even think of going on strike,” Rome resident Ida Lauro said as she queued in her car.

Unions have agreed to maintain minimum service on motorways, with at least one station open every 100 km (62 miles).

In a joint statement, unions said they called the strike to combat “a true aggression against the roughly 24,000 small businesses and 120,000 workers in the sector”.

They say oil companies have forced stations to absorb the costs of discounting campaigns, allowing them a profit of just one euro for every 100 euros ($ 130) or 55 liters of petrol sold.

Oil distributors in Italy Esso and Shell were not immediately available for comment. A government attempt to come to an agreement with the unions this week fell through.

Workers will demonstrate outside government buildings in Rome on Wednesday to pressure the state to intervene.

The strike will end on Friday morning on ordinary roads and late on Thursday on motorways.

Between December 17 and 22 the petrol stations will refuse to pay oil companies for refills. Then, between Christmas and New Year, they will refuse credit and debit card payments in protest at bank charges on electronic payments.

Mario Monti‘s technocrat government has cut spending and raised taxes since it was appointed last year to pull Italy out of a debt crisis, and is the focus of increasing protests.

The government was thrown into crisis last week when the party of former Prime Minister Silvio Berlusconi withdrew its support, prompting Monti to announce he would resign once the 2013 budget bill is passed before Christmas.

(Reporting by Eleanor Biles and Naomi O’Leary)

Economy News Headlines – Yahoo! News

Read More..

Corruption probe shrouds Quebec in new darkness

MONTREAL (Reuters) – Half a century ago, a new crop of Quebec leaders sparked the so-called Quiet Revolution to eradicate the “Great Darkness” – decades of corruption that kept Canada‘s French-speaking province under the dominance of one party and the Catholic church.

The revolution’s reforms, including cleaning up the way lawmakers were elected and secularizing the education system, seemed to work, paving the way for decades of growth, progress and prominence as Canada emerged as a model of democracy.

Fifty years later, a public inquiry into corruption and government bid-rigging suggests the province’s politics are not as clean as Quebecers had hoped or believed.

Since May, when the inquiry opened in Montreal, Canadians have been getting daily doses of revelations of fraud through live broadcasts on French-language television stations. Corruption involving the Mafia, construction bosses and politicians, the inquiry has shown, drove up the average building cost of municipal contracts by more than 30 percent in Montreal, Canada’s second-largest city.

Last month, Montreal Mayor Gerald Tremblay resigned as did the mayor of nearby Laval, Gilles Vaillancourt. Both denied doing anything wrong, but said they could not govern amid the accusations of corruption involving rigging of municipal contracts, kickbacks from the contracts and illegal financing of elections.

Tremblay has not been charged by police. Vaillancourt’s homes and offices have been raided several times by Quebec’s anti-corruption squad, which operates independently of the inquiry, but no charges have been filed against him either. Police said the raids were part of an investigation but they would not release further details.

“Quebecers lived for several years under the impression that they had found the right formula, that their parties were clean,” said Pierre Martin, political science professor at the University of Montreal. Now, he said, “people at all levels are fed up.”

The inquiry must submit its final report to the Quebec government by next October. It has exposed practices worthy of a Hollywood noir thriller – a mob boss stuffing his socks with money, rigged construction contracts, call girls offered as gifts, and a party fundraiser with so much cash he could not close the door of his safe.

“Even though we are in the early days, what is emerging is a pretty troubling portrait of the way public contracts were awarded,” said Antonia Maioni, director of the McGill Institute for the Study of Canada in Montreal.

Quebec’s Liberals, the force behind the Quiet Revolution, launched the inquiry as rumors of corruption swirled. The government then called an election for September, a year ahead of schedule, in what was seen as an attempt to stop damaging testimony hurting its popularity.

The tactic did not help. Jean Charest’s Liberals lost to the Parti Quebecois, whose ultimate aim is to take the French-speaking province, the size of Western Europe, out of Canada.

‘IT WASN’T COMPLICATED’

According to allegations at the inquiry, the corruption helped three main entities: the construction bosses who colluded to bid on contracts, the Montreal Mafia dons who swooped in for their share, and the municipal politicians who received kickbacks to finance campaigns.

In Quebec, the Mafia has been dominated by the Rizzuto family, with tentacles to the rest of Canada and crime families in New York and abroad. But recently the syndicate has been facing challenges from other crime groups in Montreal, according to the Toronto-based Mafia analyst and author Antonio Nicaso.

The reputed godfather of the syndicate, Vito Rizzuto, has been subpoenaed to appear before the commission, but the date for his testimony has not been set.

The hearings have zeroed in on four construction bosses and how their companies worked with the Mafia, bribed municipal engineers and provided funds for mayoralty campaigns in Montreal, the business capital for Quebec’s 8 million people.

“It’s not good for the economy,” said Martin. “It’s not good for any kind of legitimate business that tries to enter into any kind of long-term relationship with the public sector.”

Quebec’s anti-corruption squad has arrested 35 people so far this year, staging well-publicized raids on mayoral offices and on construction and engineering companies. The squad has arrested civil servants and owners of construction companies, among others.

“I now must suffer an unbearable injustice,” Tremblay said in a somber resignation speech earlier this month after a decade as mayor of Montreal, saying he could not continue in office because the allegations of corruption were causing a paralysis at City Hall.

Some of the most explosive allegations at the inquiry, headed by Quebec Superior Court Justice France Charbonneau, came from Lino Zambito, owner of a now bankrupt construction company, and from a top worker for Tremblay’s political party, Union Montreal.

Zambito, who is seen as one of the smaller players and who also faces fraud charges, described a system of collusion between organized crime, business cartels and corrupt civil servants, with payments made according to a predetermined formula.

“The entrepreneurs made money, and there was an amount that was due to the Mafia,” Zambito told the inquiry. “It wasn’t complicated.”

Zambito said the Mafia got 2.5 percent of the value of a contract, 3 percent went to Union Montreal and 1 percent to the engineer tasked with inflating contract prices.

Tremblay did not respond to emails requesting comment on the allegations of corruption at city hall.

A former party organizer, Martin Dumont, alleged the mayor was aware of double bookkeeping used to hide illegal funding during a 2004 election.

Dumont said the mayor walked out of the room during a meeting that explained the double bookkeeping system, saying he did not want to know anything about it.

Dumont also described how he was called into the office of a fundraiser for Union Montreal to help close the door of a safe because it was too full of money.

“I think it was the largest amount I’d ever seen in my life,” Dumont said at the inquiry.

GOLF, HOCKEY, ESCORTS

The inquiry also saw videos linking construction company players with Mafia bosses. In one police surveillance video, a Mafia boss was seen stuffing cash into his socks.

A retired city of Montreal engineer, Gilles Surprenant, described how he first accepted a bribe in the late 1980s after being “intimidated” by a construction company owner. Over the years he said he accepted over $ 700,000 from the owners in return for inflating the price of the contracts.

Another retired engineer, Luc Leclerc, admitted to bagging half a million dollars for the same service. He said the system was well-known to many at city hall and simply part of the “business culture” in Montreal. He also got gifts and paid golf trips to the Caribbean with other businessmen and Mafia bosses.

Gilles Vezina, who is currently suspended from his job as a city engineer, concurred.

“It was part of our business relationships to get advantages like golf, hockey, Christmas gifts” from construction bosses, he told the inquiry in mid-November.

The gifts didn’t stop there. Vezina said he was twice offered the services of prostitutes from different construction bosses in the 1980s or early 1990s, which he said he refused.

The accusations are jarring for a country that prides itself on being one of the least corrupt places in the world, according to corruption watchdog Transparency International. But experts say corruption in Montreal was something of an open secret.

“The alarm signals have been going off here for 20 years and no one has done anything,” said Andre Cedilot, a former journalist who co-wrote a book on the Canadian Mafia.

Quebec’s new government has introduced legislation tasking the province’s securities regulator with vetting businesses vying for public contracts and allowing it to block companies that do not measure up.

Anti-corruption activist Jonathan Brun was not optimistic.

“You’ve got to use modern technology,” said Brun, a co-founder of Quebec Ouvert, a group that wants to make all information about contracts freely available rather than asking regulators to oversee individual companies. “You’ve got to change the entire system if you really want to fight corruption.”

(Writing by Russ Blinch; Editing by Janet Guttsman, Mary Milliken and Prudence Crowther)

Canada News Headlines – Yahoo! News

Read More..

China party chief stresses reform, censors relax grasp on internet

BEIJING (Reuters) – China must deepen reforms to perfect its market economy and strengthen rule of law, Communist Party chief Xi Jinping said in southern Guangdong, echoing groundbreaking comments by reformist senior leader Deng Xiaoping in the same province 20 years ago.

Xi’s call for reform was reported on Monday, coinciding with an apparent easing of Internet search restrictions that the party has energetically used to suppress information that could threaten one-party rule.

China’s largest microblog service unblocked searches for the names of many top political leaders in a possible sign of looser controls a month after new senior officials were named to head the ruling party.

Searches on the popular Twitter-like Sina Weibo microblog for party chief Xi Jinping, Vice Premier Li Keqiang and other leaders – terms that have long been barred under strict censorship rules – revealed detailed lists of news reports and user comments.

Xi’s comments on the economy came on Sunday during a trip to Guangdong where he paid tribute to Deng, whose visit in 1992 ushered in an era of breakneck economic reform and growth.

“The government earnestly wants to study the issues that are being brought up, and wants to perfect the market economy system … by deepening reform, and resolve the issues by strengthening rule of law,” Xi was quoted by Xinhua state news agency as saying.

Experts say that unless the stability-obsessed party leadership pushes through stalled reforms, the nation risks economic malaise and social woes that could deepen unrest and threaten its grip on power.

It was too early to detect a change of heart on censorship, but Zhan Jiang, a professor at Beijing Foreign Studies University, said the signs were good.

“Things are changing quietly, and it matches what Xi Jinping said before – to achieve progress and change in a steady way,” Zhan said.

Various search terms for Premier Wen Jiabao, who was at the centre of recent New York Times reports that said his family had accumulated massive fortunes during his tenure, were still blocked on Monday.

Chinese social media sites have posed a unique challenge for party leaders whose overarching goal is to maintain political control, while at the same time allowing people to blow off steam.

Analysts have been searching for signs that China’s new leaders might steer a path of political reform. Many expected at least a temporary loosening of censorship rules after the 18th Party Congress.

“Excessively strict control of the Internet will only make things worse,” said Hu Xingdou, a professor at Beijing Institute of Technology. “So we need to allow people to speak and allow them to voice their grievances.”

(Writing by Michael Martina and Terril Yue Jones. Additional reporting by Ben Blanchard, Sally Huang and Sui-Lee Wee; Editing by Nick Macfie)

Internet News Headlines – Yahoo! News

Read More..

Australian DJs break silence over UK royal prank tragedy

CANBERRA (Reuters) – Two Australian radio announcers who made a prank call to a British hospital treating Prince William‘s pregnant wife Kate broke a three-day silence on Monday to speak of their distress at the apparent suicide of the nurse who took their call.

The 2DayFM Sydney-based announcers, Mel Greig and Michael Christian, said the tragedy had left them “shattered, gutted, heartbroken”.

Greig and fellow presenter and prank mastermind Christian have been in hiding since nurse Jacintha Saldanha‘s death and the subsequent social media outrage at their prank.

Their show, “Hot 30,” has been terminated, the station’s parent company, Southern Cross Austereo (SCA), said in a statement on Monday. SCA also announced a company-wide suspension of prank calls.

Greig told Australian television her first thought when told of Saldanha‘s death was for her family.

“Unfortunately I remember that moment very well, because I haven’t stopped thinking about it since it happened,” she said, amid tears and her voice quavering with emotion. “I remember my first question was ‘was she a mother?’”

“I’ve wanted to just reach out to them and just give them a big hug and say sorry. I hope they’re okay, I really do. I hope they get through this,” said a black-clad Greig when asked about mother of two Saldanha’s children, left grieving their mother’s death with their father Ben Barboza.

Saldanha, 46, was found dead in staff accommodation near London’s King Edward VII hospital on Friday after putting the hoax call through to a colleague who unwittingly disclosed details of Kate’s morning sickness to 2DayFM’s presenters.

British Prime Minister David Cameron said news of the Saldanha’s death was “shocking”.

“I just feel incredibly sorry for her and her family. It’s an absolute tragedy this has happened, and I’m sure everyone will want to reflect on how it was allowed to happen,” he said.

The hospital at which Saldanha worked told the BBC it had not disciplined her for taking the prank call. Police said a post-mortem examination would be conducted on Tuesday.

FIRESTORM

A recording of the call, broadcast repeatedly by the station, rapidly became an internet hit and was reprinted as a transcript in many newspapers.

But news of Saldanha’s death sparked the Internet firestorm, with vitriolic comments towards the DJs on Facebook and Twitter.

Christian said his only wish was that Saldanha’s grief-stricken family received proper support.

“I hope that they get the love, the support, the care that they need, you know,” said Christian, who like Greig struggled to talk about the tragedy.

Both Greig, 30, and Christian were relatively new to the station, with Greig joining in March and Christian having been in the job only a few days before the prank call after a career in regional radio.

Greig said she did not think their prank would work.

“We thought a hundred people before us would’ve tried it. We thought it was such a silly idea and the accents were terrible and not for a second did we expect to speak to Kate, let alone have a conversation with anyone at the hospital. We wanted to be hung up on,” she said.

Christian drew headlines only two weeks before the royal prank call by angering fellow passengers with a harmonica playing stunt aboard pop star Rihanna’s private jet.

SCA, 2Day’s parent company, has received more than 1,000 complaints from Australians over the actions of the popular presenters, who have both been taken off air during an broadcasting watchdog investigation.

“SCA and the hosts of the radio program have also decided that they will not return to the airwaves until further notice,” SCA said in a statement.

Shares in SCA fell 5 percent on Monday after two major Australian companies pulled their advertising with the radio station in protest and other advertising was suspended.

The station said it had tried to contact hospital staff five times over the recordings.

“It is absolutely true to say that we actually did attempt to contact those people on multiple occasions,” said SCA chief executive Rhys Holleran.

“No one could have reasonably foreseen what has happened. I can only say the prank call is not unusual around the world,” he said.

The fallout from the radio stunt has brought back memories in Britain of the death of William’s mother Diana in a Paris car crash in 1997 and threatens to cast a pall over the birth of his and Kate’s first child.

Australia’s Communications Minister Stephen Conroy sought to deflect calls for more media regulation, telling journalists that a looming investigation by Australia’s independent regulator should be allowed to happen without political interference.

(Additional reporting by Mohammed Abbas in London; Editing by Michael Perry)

Celebrity News Headlines – Yahoo! News

Read More..

Study: Talk Therapy May Help Depression when Medications Inadequate

A first-of-its-kind large scale research study concluded that the addition of talk therapy to a medication regimen helps to relieve the symptoms of depression, the leading cause of disability in the United States in those ages 15 years to 44 years, according to the National Institute of Mental Health .

Cognitive Behavioral Therapy as an Adjunct to Medication Treatment

Only one-third of people with depression receive relief of symptoms from medication alone, so what can be done to help the millions of people who have the illness? Researchers from the universities of Glasgow, Bristol and Exeter in the United Kingdom determined to find out by recruiting more than 450 study participants, ages 18 to 79, each of whom were among the two-thirds of those diagnosed with depression that medication alone did not resolve their symptoms.

The randomized controlled trial measured results at both six months and 12 months, and based the scores on self-reporting of depression symptoms and relief of depression symptoms by the participants. At both intervals, 46 percent of those receiving cognitive behavioral therapy, CBT, reported an abatement of at least 50 percent of their depression symptoms versus 22 percent of those receiving medication alone.

What Is the Impact of the Study Conclusions to Treatment for Depression?

Before this study, there was little measurable scientific evidence that CBT was a useful adjunct treatment for depression in people whose depressive symptoms did not respond to medication alone. Now, both mental health professionals and medical physicians alike can prescribe talk therapy for these individuals with reasonable certainty that nearly half of those who participate in such therapy will have some relief of symptoms.

But the study’s conclusions also indicate that additional research is needed to provide relief of symptoms of depression in 54 percent of the people whose symptoms are resistant to both medication and talk therapy.

What Is Cognitive Behavioral Therapy?

Cognitive behavioral therapy, talk therapy, is a widely used type of mental health counseling in which a mental health counselor provides a structured environment for aiding the individual to recognize inaccurate or negative thinking, explains MayoClinic.com .

Bottom Line

While it is reassuring to learn that many of the millions of individuals diagnosed with depression whose symptoms have not responded to antidepressant medications alone can find at least some relief of symptoms through CBT, the availability of such services in the United States is woefully lacking. Mental Health America , an advocacy group for mental health and substance abuse issues, reported that people with depression go, on average, 10 years before receiving treatment and fewer than one-third of those that do receive “minimally adequate care.”

Mental health service availability varies from state to state; those with the least amount of services have the highest rates for suicide, the most significant negative outcome of depression.

The statistics represent only those people who are diagnosed with depression. There are likely many more people who have depression symptoms who are not reporting it, such as baby boomers and their seniors, according to the American Psychological Association , whose data is not represented, meaning even less service availability.

In a nation that prides itself on being the greatest on earth, we have far to go in mental health treatment.

Seniors/Aging News Headlines – Yahoo! News

Read More..

BoE’s King warns on growth of managed exchange rates

NEW YORK (Reuters) – Bank of England Governor Mervyn King said on Monday he was concerned that countries will increasingly resort to “actively managed exchange rates” next year, in place of domestic monetary policies, if the global economy remains unbalanced.

King outlined the threats facing the struggling UK economy, including the euro zone crisis and the U.S. “fiscal cliff,” the full effects of which he expects the United States to avoid. But in a speech, he chose to highlight growing worries over central banks using their policies to influence domestic currencies.

If countries do not work to rebalance the global economy, “my concern is that in 2013, what we will see is the growth of actively managed exchange rates as an alternative to the use of domestic monetary policy,” King told the Economic Club of New York.

“You can see, month by month, the addition to the number of countries who feel that active exchange rate management, always to push their exchange rate down, is growing.”

Central banks, including that of England, have kept interest rates very low and used unprecedented policies to battle recession. Such easing in developed economies, however, can put upward pressure on currencies of emerging economies, hurting those countries’ exports.

“With interest rates at very low levels, with balance sheets having expanded a great deal and with the inability of monetary policy to indefinitely postpone the adjustments required to bring about rebalancing, some other mechanism will be needed,” King said.

King’s warnings echo those made in October by U.S. Federal Reserve Chairman Ben Bernanke, who delivered a blunt call for certain emerging economies to allow their currencies to rise.

(Reporting by Jonathan Spicer and Edward Krudy; Additional reporting by Steven Johnson; Editing by Chizu Nomiyama)

Economy News Headlines – Yahoo! News

Read More..

Egypt army given temporary power to arrest civilians

CAIRO (Reuters) – Egypt’s Islamist president has given the army temporary power to arrest civilians during a constitutional referendum he is determined to push through despite the risk of bloodshed between his supporters and opponents accusing him of a power grab.

Seven people were killed and hundreds wounded last week in clashes between the Islamist Muslim Brotherhood and their critics besieging Mohamed Mursi’s graffiti-daubed presidential palace. Both sides plan mass rallies on Tuesday.

The elite Republican Guard has yet to use force to keep protesters away from the palace, which it ringed with tanks, barbed wire and concrete barricades after last week’s violence.

Mursi, bruised by calls for his downfall, has rescinded a November 22 decree giving him wide powers but is going ahead with a referendum on Saturday on a constitution seen by his supporters as a triumph for democracy and by many liberals as a betrayal.

A decree issued by Mursi late on Sunday gives the armed forces the power to arrest civilians and refer them to prosecutors until the announcement of the results of the referendum, which the protesters want cancelled.

Despite its limited nature, the edict will revive memories of Hosni Mubarak’s emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure introduced by a civilian government would have a short shelf-life.

“The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only,” the military source said.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army’s assistance.

“The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over,” Ali said.

Protests and violence have racked Egypt since Mursi decreed himself extraordinary powers he said were needed to speed up a troubled transition since Mubarak’s fall 22 months ago.

The Muslim Brotherhood has voiced anger at the Interior Ministry’s failure to prevent protesters setting fire to its headquarters in Cairo and 28 of its offices elsewhere.

Critics say the draft law puts Egypt in a religious straitjacket. Whatever the outcome of the referendum, the crisis has polarized the country and presages more instability at a time when Mursi is trying to steady a fragile economy.

On Monday, he suspended planned tax increases only hours after the measures had been formally decreed, casting doubts on the government’s ability to push through tough economic reforms that form part of a proposed $ 4.8 billion IMF loan agreement.

“VIOLENT CONFRONTATION”

Rejecting the referendum plan, opposition groups have called for mass protests on Tuesday, saying Mursi’s eagerness to push the constitution through could lead to “violent confrontation”.

Islamists have urged their followers to turn out “in millions” the same day in a show of support for the president and for a referendum they feel sure of winning with their loyal base and perhaps with the votes of Egyptians weary of turmoil.

The opposition National Salvation Front, led by liberals such as Mohamed ElBaradei and Amr Moussa, as well as leftist firebrand Hamdeen Sabahy, has yet to call directly for a boycott of the referendum or to urge their supporters to vote “no”.

Instead it is contesting the legitimacy of the vote and of the whole process by which the constitution was drafted in an Islamist-led assembly from which their representatives withdrew.

The opposition says the document fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.

But debate over the details has largely given way to noisy street protests and megaphone politics, keeping Egypt off balance and ill-equipped to deal with a looming economic crisis.

“Inevitability of referendum deepens divisions,” was the headline in Al-Gomhuriya newspaper on Monday. Al Ahram daily wrote: “Political forces split over referendum and new decree.”

Mursi issued another decree on Saturday to supersede his November 22 measure putting his own decisions beyond legal challenge until a new constitution and parliament are in place.

While he gave up extra powers as a sop to his opponents, the decisions already taken under them, such as the dismissal of a prosecutor-general appointed by Mubarak, remain intact.

“UNWELCOME” CHOICE

Lamia Kamel, a spokeswoman for former Arab League chief Moussa, said the opposition factions were still discussing whether to boycott the referendum or call for a “no” vote.

“Both paths are unwelcome because they really don’t want the referendum at all,” she said, but predicted a clearer opposition line if the plebiscite went ahead as planned.

A spokeswoman for ElBaradei, former head of the U.N. nuclear watchdog, said: “We do not acknowledge the referendum. The aim is to change the decision and postpone it.”

Mahmoud Ghozlan, the Muslim Brotherhood’s spokesman, said the opposition could stage protests, but should keep the peace.

“They are free to boycott, participate or say no, they can do what they want. The important thing is that it remains in a peaceful context to preserve the country’s safety and security.”

The army stepped into the conflict on Saturday, telling all sides to resolve their disputes via dialogue and warning that it would not allow Egypt to enter a “dark tunnel”.

A military source said the declaration read on state media did not herald a move by the army to retake control of Egypt, which it relinquished in June after managing the transition from Mubarak’s 30 years of military-backed one-man rule.

The draft constitution sets up a national defense council, in which generals will form a majority, and gives civilians some scrutiny over the army – although not enough for critics.

In August Mursi stripped the generals of sweeping powers they had grabbed when he was elected two months earlier, but has since repeatedly paid tribute to the military in public.

So far the army and police have taken a relatively passive role in the protests roiling the most populous Arab nation.

(Additional reporting by Edmund Blair and Yasmine Saleh; editing by Philippa Fletcher)

World News Headlines – Yahoo! News

Read More..

U.S. judge names lead plaintiffs in Facebook litigation

NEW YORK (Reuters) – A group of investors including state pension funds in North Carolina and Arkansas will be the lead plaintiffs in securities lawsuits arising out of Facebook Inc’s $ 16 billion initial public offering, a U.S. judge ruled on Thursday.

The investors, in a proposed class-action case, have accused Facebook of misrepresenting its financial condition in the run-up to the May stock offering. They are represented by law firms Bernstein Litowitz Berger & Grossmann and Labaton Sucharow.

The ruling helps set a structure for the Facebook IPO litigation, a headache for the social media company and a nagging reminder of the technical glitches in the highly anticipated stock market debut.

U.S. District Judge Robert Sweet in Manhattan also named lead plaintiffs for lawsuits against NASDAQ OMX Group Inc stemming from the IPO. NASDAQ was sued over allegations that orders to buy and sell Facebook were not properly executed on the first day of trading.

Facebook, which has defended its pre-IPO disclosures, declined to comment on Thursday. A spokesman for NASDAQ declined to comment on the litigation.

Facebook shares made their debut at $ 38 per share, and later fell as much as 50 percent. On Thursday, they closed at $ 26.90, down 2.6 percent.

Sweet consolidated the cases and picked lead plaintiffs to head up most of the 42 lawsuits before him arising out of the IPO.

Under a federal law governing securities lawsuits, courts routinely select a lead plaintiff in class actions. The lead plaintiff typically is the shareholder with the biggest losses, though judges have discretion to pick a different investor.

The plaintiff group picked to lead 31 cases alleging securities violations against Facebook includes the North Carolina Retirement Systems, Arkansas Teacher Retirement System, the Fresno County Employees’ Retirement Association and Banyan Capital Master Fund Ltd.

The group has collectively claimed a combined $ 7.1 million in losses.

“Its members are large, institutional investors with experience representing shareholder classes in similar litigation with the resources to pursue the action,” Sweet said.

In the securities lawsuits against NASDAQ, the judge said First New York Securities LLC, T3 Trading Group LLC, and Avatar Securities LLC would act as co-lead plaintiffs. The group traded a combined $ 316 million in Facebook shares the day of the IPO, the decision said.

The case is In re Facebook, Inc, IPO Securities and Derivative Litigation, U.S. District Court, Southern District of New York, MDL No. 12-2389.

(Reporting by Nate Raymond; Editing by Martha Graybow)

Internet News Headlines – Yahoo! News

Read More..

Health workers march in Spain’s capital against cuts, reforms

MADRID (Reuters) – Thousands of health workers, on strike since last month, marched on Sunday in Madrid to protest against budget cuts and plans from the Spanish capital’s regional government to privatize the management of public hospitals and medical centers.

It was the third time doctors, nurses and health workers have rallied since the local authorities put forward a plan in October to place six hospitals and dozens of medical practices under private management. The plan also calls for patients to be charged a fee of 1 euro for prescriptions.

Workers launched an indefinite strike last month against the plan, which has not been endorsed by the centre-right government of Prime Minister Mariano Rajoy. Health workers in the capital are striking Monday-Thursday each week and seeing patients only on Fridays, while also responding to emergencies.

Spain’s 17 autonomous regions control health and education policies and spending. They have all had to implement steep cuts this year as the country struggles to meet tough European Union-agreed deficit targets.

Dressed in white scrubs, the protesters shouted slogans such as “Health is not for sale” and “Health 100 percent public, no to privatizations”.

“Of course, privatization can be reversed. Actually the question is not if it can be reversed, because privatization should never have a future,” said Luis Alvarez, an unemployed man from Madrid attending the demonstration.

Belen Padilla, a doctor at Madrid’s hospital Gregorio Maranon, said one million citizens had already signed a petition rejecting the plan.

(Reporting by Reuters Television; Writing by Julien Toyer; Editing by Peter Graff)

Health News Headlines – Yahoo! News

Read More..

Wall St Week Ahead: “Cliff” worries may drive tax selling

NEW YORK (Reuters) – Investors typically sell stocks to cut their losses at year end. But worries about the “fiscal cliff” – and the possibility of higher taxes in 2013 – may act as the greatest incentive to sell both winners and losers by December 31.

The $ 600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-related selling even more appealing than usual.

Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it’s still up nearly 32 percent for the year.

Apple dropped 8.9 percent in the past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one’s tax bill is going to jump sharply just because the calendar changes.

“Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year,” said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

“You have a lot of high-net-worth individuals in taxable accounts, and that could be what’s affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual.”

Of this year’s top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.

The rush to avoid higher taxes on portfolio gains could cause additional weakness.

The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.

A PAIN PILL FROM THE FED?

This week’s Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. EST on Wednesday after the conclusion of the meeting – the Fed’s last one for the year.

Friday’s jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that superstorm Sandy had hit the labor market hard.

“After the FOMC meeting, I think it’s going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely,” said Mohannad Aama, managing director of Beam Capital Management LLC in New York.

“I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year,” he said.

MORE VOLUME AND VOLATILITY

Volume could increase as investors try to shift positions before year end, some analysts said.

While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade’s chief derivatives strategist.

Volatility could pick up as well, and some of that is already being seen in Apple’s stock.

“The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple’s volatility to carry over into the market volatility,” said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.

Shares of Apple, the largest U.S. company by market value, on Friday registered their worst week since May 2010. In another bearish sign, the stock’s 50-day moving average fell to $ 599.52 – below its 200-day moving average at $ 601.38.

“There’s a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple,” Aama said.

If tax rates are going up, an investor would sell now to book gains and pay lower capital gains taxes, according to Aama. But if an investor has capital losses, then “you take losses and have them count against capital gains or regular income if you do not have any offsetting capital gains.

“In essence, higher capital gains tax rates will give your losses a higher value next year than this year as the income tax shield will be worth more in 2013. So if you have no capital gains this year, you are better off holding off on selling your losers in 2012 and waiting till 2013,” he said in an email.

While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.

To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.

Even with stocks’ recent declines, the three major U.S. stock indexes are still up for the year. The Dow Jones industrial average <.dji> is up 7.7 percent for 2012 so far, while the benchmark Standard & Poor’s 500 index <.spx> is up 12.8 percent and the Nasdaq Composite Index <.ixic> is up 14.3 percent for the year to date.</.ixic></.spx></.dji>

Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there is a decent chance that the market could rally before the year ends.

“Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it’s hung in there in anticipation of something coming,” he said.

(Wall St Week Ahead runs every Sunday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on <.l>; Pan-European stock market outlook <.eu>; Tokyo stock market outlook <.t>)</.t></.eu></.l>

Business News Headlines – Yahoo! News

Read More..