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Buffett makes annual stock donations to charities

Written By Unknown on Senin, 08 Juli 2013 | 23.16

OMAHA, Neb. — Billionaire Warren Buffett is giving five charities more than $2.6 billion worth of Berkshire Hathaway Inc. stock as part of his overall plan to give away his fortune gradually.

Buffett announced the annual gifts Monday. The biggest block of Class B shares of Berkshire stock worth $2 billion is going to the Bill and Melinda Gates Foundation.

Buffett also gave 1.75 million shares to his own foundation and 1.2 million shares to each of his three children's foundations. The Class B shares were up 46 cents at $115.42 in midday trading Monday.

Last year, Buffett announced plans to double the amount of stock he gives to his children's foundations because he has been pleased with the work they've done.

The chairman and CEO of Berkshire outlined his charitable plans in 2006 and has been making annual gifts since then.


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Appeals court hearing BP challenge on spill claims

NEW ORLEANS — A federal appeals court is hearing BP's bid to challenge what could be billions of dollars in settlement payouts to businesses claiming they lost money after the company's 2010 oil spill in the Gulf of Mexico.

Lawyers for BP and Gulf Coast businesses and residents began arguments Monday before a three-judge panel of the 5th U.S. Circuit Court of Appeals in New Orleans.

BP wants the panel to overturn a federal judge's ruling that upheld a court-appointed claims administrator's interpretation of the settlement.

BP claims the administrator has allowed thousands of businesses to secure hundreds of millions of dollars in payments for inflated and fictitious losses.

Plaintiffs' lawyers counter that BP underestimated how many claimants would qualify for payments.


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Companies move ahead with Bangladesh safety accord

NEW YORK — A group of primarily European retailers and clothing makers said Monday that it plans to inspect clothing factories in Bangladesh that make garments for the companies within the next nine months and will concentrate renovations on those that pose the biggest safety threat.

The group of 70 companies includes Swedish retailer H&M, Italian clothing maker Benetton and French retailer Carrefour. Under the companies' agreement, they are required to pay administrative costs for the inspections, training and other programs. And they're also responsible for ensuring that "sufficient funds are available to pay for renovations and other safety improvements.

The details of the legally binding five-year pact come after negotiating with worker rights' groups and other organizations on how the plan should be carried out. The plan, announced in mid-May, initially had 30 companies signing on. The plan covers anywhere from 800 to about 1,000 of the 5,000 garment factories in Bangladesh.

"''Our mission is clear: to ensure the safety of all workers in the Bangladesh garment industry," said Jyrki Raina, general secretary of IndustriALL Global Union, a Geneva-based labor union involved in the negotiations.

Stores and clothing makers face increasing pressure to step up oversight of Bangladeshi factories following a building collapse in April that killed 1,129 workers there. The tragedy, the deadliest incident in the history of the garment industry, came just months after a fire in another garment factory in Bangladesh in November killed 112 workers.

Only a handful of U.S. companies have committed to the global pact and include PVH Corp., the New York-based parent company of Tommy Hilfiger; and Abercrombie & Fitch of New Albany, Ohio.

Many U.S. merchants say they were averse to signing on to the global pact because they believe it exposed them to unlimited liability. Instead, Wal-Mart, Gap and others are part of a coalition of U.S. merchants and garment makers developing an alternative plan. They're closely working with former U.S. Sens. George Mitchell and Olympia Snowe. The details are expected to be announced later this month.

As part of the global plan pushed by IndustriALL and other worker rights groups, if a factory is identified as an immediate threat by either an inspection or worker reports, the factory owner will be told to cease operations pending investigation or repairs.

With the involvement of the local unions, factory workers will be informed of the potential danger and their right to refuse to enter a potentially unsafe building. A viable plan with renovations and repairs undertaken to address the hazards will be produced and workers will be paid while the factory remains closed.

According to the agreement, funds used to pay for renovations may be generated through negotiated commercial terms, joint investments, direct payment for improvements, government and other donor support or any combination.

All seventy companies have been asked to send in data about factories they use by July 15. The information includes names, addresses and the physical layout of the facilities. The inspection reports will be made public.

Six executive members of the steering committee have been elected and including officials of IndustriALL Global Union, UNI Global Union and the Bangladesh Council of Trade Unions as well as representatives of companies that have signed on to the pact. They include Inditex, N. Brown Group and PVH Corp. The International Labor Organization has designated a senior representative to serve as chairperson.

The group has also begun to recruit both the chief safety inspector and the executive director.


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Thomson Reuters suspends early data access

Thomson Reuters will suspend its practice of distributing results from consumer surveys a couple seconds early to clients who pay the news and business information provider for advance access.

A company spokeswoman said Monday that Thomson Reuters will simultaneously distribute survey data at 9:55 a.m. starting Friday from the University of Michigan Surveys of Consumers after the New York State attorney general requested the suspension.

The attorney general's office is investigating the early data access, and Thomson Reuters said it is cooperating with that review.

That twice-monthly survey is separate from the consumer confidence index produced by the private research group the Conference Board.

Thomson Reuters pays for exclusive access to the University of Michigan results, and some of its clients have been paying extra to receive the data two seconds before other clients receive it at 9:55 a.m. This allows high-speed computers to make trades before others gain access to the data.

Thomson Reuters then sends out a press release about the survey at 10 a.m.

Modern stock trading is dominated by automated computer systems that make trades in fractions of a second, and traders can profit from receiving data even milliseconds before its public release. Consumer sentiment regarding the economy is watched closely because consumers' spending accounts for about 70 percent of U.S. economic activity.

The New York Times reported that the attorney general's investor protection bureau is looking at whether preferential disclosure of data is a fair and appropriate business practice.

Thomson Reuters said in an emailed statement it "strongly believes that news and information companies can legally distribute non-governmental data and exclusive news through services provided to fee-paying subscribers."

"It is widely understood that news and information companies compete for exclusive news and differentiated content to help their customers make better informed trading and investment decisions," the statement said.

Company spokeswoman Yvonne Diaz added that Thomson Reuters has always been transparent about how it releases proprietary data so its customers can chose the level of service they want.

Last month, the Conference Board announced that it will no longer provide its economic reports in advance to news organizations because it suspects the data is being diverted early to computer-driven trading systems, which can unfairly profit from it.

It had long provided its monthly data to reporters 30 minutes before the information is publicly released. That early access allowed journalists to prepare news reports ahead of the information's public release.

Last year, the Labor Department revoked early access to its employment data for several companies that deliver data to high-speed traders but produce little or no original news content.


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Gas up 3 cents per gallon in Mass.

BOSTON — Massachusetts residents are paying more at the pump this week, with a 3-cent per gallon rise in the cost of a gallon of gas.

AAA Southern New England reports Monday that self-serve, regular jumped to $3.48 per gallon, a penny higher than the national average.

Current prices are a dime higher than at the same last year, but still a penny lower than a month ago.

AAA found self-serve, regular selling as low as $3.32 per gallon and as high as $3.85.


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40 still missing in deadly Canada oil train crash

LAC-MEGANTIC, Quebec — Hazardous conditions are getting in the way of firefighters' efforts to search for some 40 people still missing after the explosion of a runaway oil tanker train in Quebec over the weekend. At least five others were killed.

Police say there was no additional searching overnight because the situation remained too dangerous. A police spokesman says only a small part of the devastated scene has been searched, as firefighters make sure all of the flames are out.

Many of the missing are believed to have been drinking at a popular downtown bar when the explosions occurred. Searchers still haven't been able to reach that area.

Today, firefighters are focusing their efforts on two rail cars filled with oil. They're dousing them with water and foam, to try to keep them from overheating and exploding.

All but one of the train's 73 tanker cars were carrying oil when they somehow came loose Saturday morning. They sped downhill nearly seven miles into a town near the border with Maine and derailed. At least five of the cars exploded.

About a third of the 6,000 residents were forced from their homes by the explosion and flames.


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Facebook pushes search feature to more users

NEW YORK — Users who may have grown frustrated with Facebook's rudimentary search feature are getting an updated version designed to make it easier to find people, places and photos on the site.

Facebook unveiled its social search tool in January, but only made it available to a small fraction of its 1.1 billion users, as its engineers continued to tweak and test it. Over the next few weeks, starting on Monday, the company is rolling out the social search tool, called "Graph Search," to everyone whose language is set to U.S. English.

Unlike searches on Google, which are good for finding specific things like roasted kale recipes or Mizuno running shoes, Facebook's tool is most useful in unearthing information about your social circles. Graph Search lets you find friends who live in San Francisco who are vegan. Friends of friends who live near you and like hiking. Photos of your boyfriend taken before you met him in 2010. Nearby restaurants that your friends like — and so on.

But soon after Facebook launched the tool, the Internet had a field day with less innocuous and more embarrassing queries, showing just how much information people reveal about themselves on the site, intentionally or not. Care to find out which brand of condoms your friends prefer? Graph Search might tell you.

A blog called actualfacebookgraphsearches.tumblr.com posted a collection of searches ranging from "married people who like prostitutes" to "current employers of people who like racism." Both yielded more than 100 people.

While it is possible that some of those Facebook users are fully aware that what they've shared is easily searchable, it is likely that some are not. It's easy to click "like" on a page and forget about it, and it's even easier to assume that no one will search through your photos from party days at the Burning Man festival five years ago.

To avoid any unpleasantness, Facebook plans to notify users that it's "getting easier for people to find photos and other things you've shared with them" along with a reminder that they can check "who can see my stuff" under their privacy settings.

"The goal is to avoid bad surprises," said Nicky Jackson Colaco, privacy and safety manager at Facebook. But she stressed Facebook's view that the search tool "indexes information differently than we have ever been able to do before, in a really positive way."

It's easier, for example, to find a long-lost classmate with a common name, or to find common interests with friends of friends.

Facebook does not currently show users ads based on what they are searching for, but the company may do in the future. As Google has shown, it's a lucrative business. Research firm eMarketer estimates that Google will take nearly 42 percent of all U.S. digital ad spending this year, well above Facebook's share of less than 7 percent.

With its new search tool, Facebook is clearly trying to divert traffic and ad spending from its rival. Whether this will work will become more clear as more people begin using it.


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Fiat exercises option to buy more Chrysler stock

DETROIT — Italian automaker Fiat has exercised a third option to buy a small amount of Chrysler stock, but the sale won't go through until a U.S. court settles a dispute over the price.

Fiat said Monday that it offered $254.7 million for another 3.3 percent of Chrysler's outstanding equity.

Fiat already owns 58.5 percent of Chrysler, with the remaining 41.5 percent held by a trust that pays medical bills for retired United Auto Workers union members. The Italian company wants to buy all of the trust's stock and fully merge Chrysler and Fiat.

The price on the options will be settled by a judge in Delaware Chancery Court, and the ruling is likely to set the price for the trust's remaining Chrysler stake. For several months, Fiat has been trying to arrange financing to buy the trust's stock. Fiat expects a court ruling sometime this month.

"I hope to close (the deal) as soon as possible if they let me do it," the Italian news agency LaPresse quoted Fiat and Chrysler CEO Sergio Marchionne as saying at an appearance Monday in Turin, Italy, Fiat's headquarters city.

Fiat now has exercised options to buy 9.9 percent more Chrysler stock. The Italian automaker has options to buy 3.3 percent of Chrysler stock every six months until it gets another 16.6 percent. Fiat offered $139.7 million for the first 3.3 percent option on July 3, 2012, but the trust fund says the price should be $343 million. Fiat raised its offer to $198 million for the second 3.3 percent on Jan. 3 of this year.

The options are part of the deal in which Fiat and Marchionne were appointed to manage Chrysler in 2009 by the U.S. government. The government bailed out the struggling Chrysler and funded its trip through bankruptcy restructuring.

Since then, Fiat has raised its stake in the resurgent Chrysler, and Marchionne is merging the companies to generate more cost savings from joint research, management and purchasing.

Once it gains control of the whole company, Fiat is considering a plan to hold an initial public stock offering, which would raise much-needed money for research on new vehicles at both companies, and could help Fiat weather the economic downturn in Europe.

Fiat SpA shares are now traded publicly on the Milan stock exchange, while Chrysler is technically a private company with no publicly traded shares. Presumably, Fiat shareholders would be offered a stake in the new company if they approve the merger.

Merging the companies would give Fiat access to Chrysler's cash. Currently, Fiat shares in Chrysler's profits but can't use the Detroit automaker's funds for its own operations. Fiat lost $108 million in the first quarter, while Chrysler made $166 million. Without Chrysler, Fiat would have lost $1.41 billion last year. Chrysler had $11.9 billion in cash as of March 31.

Like Fiat, the trust got its stake in Chrysler from the government as part of the 2009 bankruptcy. At the time Chrysler owed the trust around $4 billion as part of a deal with the UAW to take over retiree health care costs.

The trust fund needs cash to pay medical bills for thousands of Chrysler blue-collar retirees. In order to monetize its stake in Chrysler, it either has to sell the shares to another party, such as Fiat, or sell to the public — which could happen if Fiat and the trust can't agree on a share price.

The trust has asked Fiat to begin working on an IPO of Chrysler, but cannot formally compel it to follow through; a public offering takes about 18 months to prepare. Marchionne has said he favors buying the trust's stake to a public sale.

Marchionne has already taken steps to combine Fiat and Chrysler. The companies are sharing engines and parts and have jointly designed cars like the Dodge Dart compact. The balance sheets are already combined, although there is a strict separation of assets.


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Studies: Cyberspying targeted SKorea, US military

SEOUL, South Korea — The hackers who knocked out tens of thousands of South Korean computers simultaneously this year are out to do far more than erase hard drives, cybersecurity firms say: They also are trying to steal South Korean and U.S. military secrets with a malicious set of codes they've been sending through the Internet for years.

The identities of the hackers, and the value of any information they have acquired, are not known to U.S. and South Korean researchers who have studied line after line of computer code. But they do not dispute South Korean claims that North Korea is responsible, and other experts say the links to military spying add fuel to Seoul's allegations.

Researchers at Santa Clara, California-based McAfee Labs said the malware was designed to find and upload information referring to U.S. forces in South Korea, joint exercises or even the word "secret."

McAfee said versions of the malware have infected many websites in an ongoing attack that it calls Operation Troy because the code is peppered with references to the ancient city. McAfee said that in 2009, malware was implanted into a social media website used by military personnel in South Korea.

"This goes deeper than anyone had understood to date, and it's not just attacks: It's military espionage," said Ryan Sherstobitoff, a senior threat researcher at McAfee who gave The Associated Press a report that the company is releasing later this week. He analyzed code samples shared by U.S. government partners and private customers.

McAfee found versions of the keyword-searching malware dating to 2009. A South Korean cybersecurity researcher, Simon Choi, found versions of the code as early as 2007, with keyword-searching capabilities added in 2008. It was made by the same people who have also launched prior cyberattacks in South Korea over the last several years, Choi said.

Versions of the code may still be trying to glean military secrets from infected computers. Sherstobitoff said the same coded fingerprints were found on an attack June 25 — the anniversary of the start of the 1950-53 Korean War — in which websites for South Korea's president and prime minister were attacked. A day later the Pentagon said it was investigating reports that personal information about thousands of U.S. troops in South Korea had been posted online.

Sherstobitoff began his investigation after the March 20 cyberattack, known as the Dark Seoul Incident. It wiped clean tens of thousands of hard drives, including those belonging to three television networks and three banks in South Korea, disabling ATMs and other bank services. South Korea says no military computers were affected by Dark Seoul.

The code used in the shutdown is different from that used to hunt for military secrets, but they share so many characteristics that Sherstobitoff and Choi believe they were made by the same people.

Sherstobitoff said those responsible for the spying had infected computers by "spear phishing" — targeted attacks that trick users into giving up sensitive information by posing as a trusted entity. The hackers hijacked about a dozen obscure Korean-language religious, social and shopping websites to make it easier to pull secrets from infected computers without being detected.

The McAfee expert said the hackers have targeted government networks with military information for at least four years, using code that automatically searched infected computers for dozens of military terms in Korean, including "U.S. Army," ''secret," ''Joint Chiefs of Staff" and "Operation Key Resolve," an annual military exercise held by U.S. Forces Korea and the South Korean military.

The report does not identify the government networks that were targeted, but it does mention that in 2009, the code was used to infect a social media site used by military personnel living in South Korea. McAfee did not name the military social media site, nor release what language it is in, at the request of U.S. authorities who cited security issues. South Korea has a military force of 639,000 people, and the U.S. has 28,500 military personnel based in the country.

McAfee also said it listed only some of the keywords the malware searched for in its report. It said it withheld many other keywords that indicated the targeting of classified material, at the request of U.S. officials, due to the sensitivity of releasing specific names and programs.

"These included names of individuals, base locations, weapons systems and assets," said Sherstobitoff.

Choi, who works for a South Korean cybersecurity company, has made similar discoveries through IssueMakersLab, a research group he and other "white-hat" hackers created.

Results of a report Choi produced were published in April by Boan News, a Seoul-based website focused on South Korean security issues, but they did not get broad attention. That report included many search terms not included in the McAfee report, including the English-language equivalents of Korean keywords.

Both McAfee and IssueMakersLab found that any documents, reports and even PowerPoint files with military keywords on infected computers would have been copied and sent back to the attackers.

The attackers are also able to erase hard drives en masse by uploading malware and sending remote-control commands, which is what happened March 20.

Before that attack, hackers had been sending spy malware on domestic networks for months, giving them the ability to gather information about how their internal servers work, what websites the users visit and which computers are responsible for security, the researchers found. This information would have been crucial for planning the coordinated attacks on banks and TV networks.

Anti-virus software and safe practices such as avoiding links and attachments on suspicious emails can prevent computers from getting infected, but the March attack shows how difficult this can be to accomplish on a broad scale. Ironically, some of the malicious codes used were disguised as an anti-virus product from Ahnlab Inc., South Korea's largest anti-virus maker, said McAfee.

McAfee said it shared its findings with U.S. authorities in Seoul who are in close collaboration with South Korean military authorities.

Tim Junio, who studies cyberattacks at Stanford University's Center for International Security and Cooperation, said the McAfee report provides "pretty compelling evidence that North Korea is responsible" for the attacks in the South by tying the series of hacks to a single source, and by showing that users of a military social media site were targeted.

There are clues in the code as well. For example, a password, used again and again over the years to unlock encrypted files, had the number 38 in it, a politically loaded figure for two countries divided on the 38th parallel, security experts said.

Pentagon spokesman Army Lt. Col. James Gregory said the Defense Department is aware of the study and looks forward to reviewing it.

"The Defense Department takes the threat of cyber espionage and cyber security very seriously, which is why we have taken steps to increase funding to strengthen capabilities and harden networks to mitigate against the risk of cyber espionage," he said.

South Korea's Defense Ministry says its secrets are safe. Ministry spokesman Kim Min-seok said officials were unaware of McAfee's study, but added that it's technically impossible to have lost classified reports because computers with military intelligence are not connected to the Internet. When accessing the Web, military officials use different computers disconnected from the internal military server, he said.

A hack of sensitive South Korean military computers from the Internet "cannot be done," Kim said. "It's physically separated."

Sherstobitoff, however, said it can be done, though he's not sure that it has been.

"While it is not entirely impossible to extract information from a closed network that is disconnected from the Internet, it would require some extensive planning and understanding of the internal layout to stage such an exfiltration to the external world," he said.

Kwon Seok-chul, chief executive officer of Seoul-based cyber security firm Cuvepia Inc., said recent hacking incidents suggest that hackers may have enough skills to infiltrate into the internal servers of Korean and U.S. military. Even if two networks are separated, he said, hackers will do anything to find some point where they converge.

"It takes time, but if you find the connection, you can still get into the internal server," Kwon said.

FBI Assistant Director Richard McFeely would not comment on McAfee's findings, but said in a written statement that "such reports often give the FBI a better understanding of the evolving cyber threat."

Neither the McAfee nor the IssueMakersLab reports suggest who is responsible for the cyberattacks, but many security experts believe North Korea is the likely culprit.

South Korean authorities have blamed the North for many cyberattacks on its government and military websites and have said they linked the March 20 attacks to at least six computers located in North Korea that were used to distribute malicious codes.

Several calling cards were left behind after the March attack, taunting victims. Two different and previously unknown groups separately took credit: The "Whois Hacking Team" posted pictures of skulls and a warning, while the "NewRomanic Cyber Army Team" said it had leaked private information from banks and media organizations.

"Hi, Dear Friends," began one such note. "We now have a great deal of personal information in our hands."

But McAfee says that claim, and others — including tweets and online rumors claiming credit for prior attacks — were meant to mislead the public and investigators, covering up the deeper spying program.

James Lewis, a senior fellow at the Center for Strategic and International Studies, said the attack is far more skillful and took place over a much longer period than was previously thought.

"I used to joke that it's hard for the North Koreans to have a cyber army because they don't have electricity, but it looks as if the regime has been investing heavily in this," said Lewis. "Clearly this was part of a larger effort to acquire strategic military information and to influence South Korean politics."

North Korean leader Kim Jong Un has made computer use and the importance of developing the IT sector hallmarks of his reign, devoting significant state resources toward science and technology. Though much of the country lacks steady electricity, a massive hydroelectric power station keeps the capital — and state computer centers — humming.

North Korean officials insist the emphasis on cyberwarfare is on protecting North Korea from cyberattacks, not waging them, but there is widespread suspicion that resources are also being poured into training scores of cyberwarriors as well.

Relatively few North Koreans are allowed to access the Internet — especially when compared to the South's hyper-wired society — but it too has seen its computer systems paralyzed by cyberattacks. Pyongyang blames the U.S. and South Korea and has warned of "merciless retaliation."

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Martha Mendoza reported from San Jose, California.

___

Follow Martha Mendoza at https://twitter.com/mendozamartha

Follow Youkyung Lee at https://twitter.com/YKLeeAP


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Appeals court hears BP challenge on spill claims

NEW ORLEANS — An attorney for BP PLC says "irreparable injustices" are taking place because of the way a court-appointed administrator is making settlement payments from the 2010 Deepwater Horizon oil spill.

Ted Olson argued Monday in a packed courtroom before a three-judge panel of the 5th U.S. Circuit Court of Appeals.

A lower court refused to block payments to businesses that claim the spill cost them money.

An attorney for Gulf Coast businesses and residents questioned whether the appeals court has authority to change the agreement.

Samuel Issacharoff (is-AK'-uh-rahf) argued the oil company was aware of the settlement terms and the administrator's methods.

At stake are billions of dollars in settlement payments stemming from the blowout of BP's Macondo well in the Gulf of Mexico.


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