Greek motorcycle rally starts off week of protests

ATHENS, Greece — Sirens blaring, striking municipal police officers brought traffic to a standstill across central Athens on Monday as part of mounting protests against new government cuts.

The officers parked their motorcycles and patrol cars outside parliament, government buildings and the offices of the governing center-right New Democracy party and its Socialist coalition partner. The noisy start-and-stop protest lasted more than five hours.

It launched a week of planned demonstrations against the latest round of austerity measures that will impose staff cuts on teachers and local government. Municipal authorities across Greece — including the Athens municipal police, who are generally tasked with checking parking violations and checking street vendors — have suspended services for three days, while unions have called a general strike for Tuesday.

The strike is set to disrupt flights, national rail travel and public hospitals.

Greece's international creditors demanded the job cuts before approving new bailout loan installments worth 6.8 billion euros ($8.9 billion) from a massive rescue fund worth 240 billion euros ($312 billion). The latest batch of loans will be paid out between July and October.

Public sector workers, while slapped with repeated salary and benefit cuts, have been spared firings until this year.

The measures are to be voted on by parliament this week — the first major political test for Conservative Prime Minister Antonis Samaras since a left-wing party abandoned his coalition government last month, leaving it with a reduced majority.

Samaras' 13-month-old coalition has promised to fire 15,000 public sector employees by the end of 2014 and transfer another 12,500 to new positions this year, most following an eight-month suspension on reduced pay.

He is facing renewed opposition from the left-wing Syriza party, which has made a campaign promise to re-hire dismissed public servants and at the weekend voted to overhaul its party structure to prepare for potential early elections.

Government officials met with protesting mayors Monday and insisted there was room for changes in the new austerity bill to be voted late Wednesday, but they ruled out backing the major amendments demanded by local government.

"We are not opposed to reform ... What we do oppose is abolishing entire institutions like the municipal police and personnel to guard state schools," said Costas Askounis, leader of the protesting Central Union of Municipalities.

Greece has been kept out of bankruptcy since it started receiving rescue loans in 2010 from other euro countries at the International Monetary Fund, but austerity measures demanded in return have caused a dramatic increase in poverty and unemployment.

German Finance Minister Wolfgang Schaeuble, considered an architect of bailout austerity measures in the eurozone, is due to visit Athens on Thursday.

Shares on the Athens Stock Exchange fell 0.5 percent on Monday, while markets elsewhere in Europe rose slightly.

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China identifies suspects in drug bribery probe

BEIJING — Chinese police have identified four managers of drug manufacturer GlaxoSmithKline who they accuse of paying millions of dollars in bribes to doctors and others, a state news agency reported Monday.

The police ministry announced last week GSK employees were under investigation for paying bribes that were passed through travel agencies. It said the bribes were aimed at increasing sales.

Four employees being questioned include a vice president and human resources director of Glaxo's Chinese unit, the Xinhua News Agency said.

The report said at least 50 million yuan ($8.2 million) passed through a travel agency as part of a scheme to hide the bribes. It said one suspect had authority to approve a budget of hundreds of millions of yuan (tens of millions of dollars) but did not say how much of that might have been used for bribery.

The scheme helped the employees circumvent GSK's rules that limited gift-giving to 300 yuan ($50) per recipient, Xinhua said.

GlaxoSmithKline PLC said Monday that it was cooperating with the authorities.

"We are deeply concerned and disappointed by these serious allegations of fraudulent behavior and ethical misconduct by certain individuals at the company and third-party agencies," it said in a statement. "Such behavior would be a clear breach of GSK's systems, governance procedures, values and standards. GSK has zero tolerance for any behavior of this nature."

It said GSK was reviewing all-third party agency relationships, and had "put an immediate stop on the use of travel agencies that have been identified so far in this investigation and we are conducting a thorough review of all historic transactions related to travel agency use."

GSK said it respects China's laws and expects its staff to abide by them.

The police ministry said last week that GSK employees were suspected of paying bribes to doctors, hospitals, medical associations and government officials.

Citing investigators, Xinhua identified the employees as Liang Hong, vice president and operation manager; Zhang Guowei, vice president and human resources; Zhao Hongyan, legal affairs director, and Huang Hong, business development manager.

Investigators also have questioned the corporate representative of the Shanghai Linjiang International Travel Agency, Xinhua said. It cited an unnamed investigator who said most of the agency's business came from laundering money for the bribery scheme.

Xinhua said the corporate representative of the travel agency, Weng Jianyong, said he had an agreement with Liang to give his agency business and in exchange he would kick back some of the money.

GlaxoSmithKline said in June that it had investigated an accusation that its salespeople in China bribed doctors and found no evidence of wrongdoing. The company has said the police investigation might be based on information from the same anonymous source.

GSK is headquartered in Britain but has a presence in the United States, which could make it liable to penalties under U.S. anti-bribery laws.

Last week, state media reported the government was investigating production costs for 60 foreign and domestic drug companies in a possible first step toward changing state-set maximum prices. The announcement gave no indication any companies were suspected of wrongdoing.

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Loblaw to buy Shoppers Drug Mart for $11.9B

TORONTO — Canada's largest supermarket chain said Monday that it has agreed to purchase the country's biggest pharmacy chain for $11.9 billion (CA$12.4 billion) in cash and stock.

Loblaw Companies Ltd. said that by buying Shoppers Drug Mart Corp. it would create a retail giant with more than $40 billon (CA$42 billion) in revenue and gain access to the growing small-urban store sector.

"I have long believed that the next chapter for growth at Loblaw should be based in a vision that combined health, wellness and nutrition. Loblaw combining with Shoppers Drug Mart is the ultimate expression of that vision," said Galen Weston, executive chairman of Loblaw, in a conference call with analysts Monday.

"Not only does this transaction make compelling financial sense, it establishes a truly innovative platform for the future," Weston said.

The offer is worth $59.22 (CA$61.54) per Shoppers Drug Mart common share — about 29 percent above the recent average trading price for the Shoppers stock — with about 54 percent of the price paid in cash.

Loblaw is offering $31.93 (CA$33.18) in cash plus about six-tenths of a Loblaw share for each Shoppers Drug Mart common share.

Shoppers shares were up $12.22 (CA$12.70), or about 26 percent, at $58.80 (CA$61.10), while Loblaw shares were up $3.32 (CA$3.45), or about 7 percent, at $49.08 (CA$51) on the Toronto Stock Exchange in morning trading.

Under the terms of the agreement, which is still subject to approvals, Shoppers will keep its brand name and operate as a separate division of Loblaw.

However, Weston and other executives of the two companies said they anticipate cross marketing of each company's products — specifically mentioning the Loblaw President Choice and Blue Menu brands and Shopper's Life brands — as well as services such as their loyalty points programs.

Canadian retailers have faced increasing competition from large U.S. chains, such as Target, which began to roll out its stores across the country earlier this year. It joins Walmart and Costco, and as well as domestic retailers such as Sobeys that offer a combination of merchandise, pharmacy products and groceries.

The deal will require approval by at least two-thirds of the votes by Shoppers Drug Mart shareholders at a special meeting expected to take place in September.

A majority of Loblaw shareholders must also approve the deal because of the number of shares being issued.

Domenic Pilla, president and CEO of Shoppers Drug Mart, said the deal provides "significant and immediate value" for Shoppers shareholders who will receive up to $6.45 billion (CA$6.7 billion) of cash and 119.9 million Loblaw shares.

Pilla and the Loblaw executives told analysts that they don't anticipate any store closings as a result of this transaction and they endorsed the current use of associate owners at Shoppers Drug Mart.

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Mass. gas prices soar 14 cents per gallon

BOSTON — Political tensions in Egypt and increased demand during the summer driving season have driven up the cost of gas in Massachusetts by 14 cents per gallon.

AAA Southern New England reports Monday that self-serve, regular has jumped to $3.62 per gallon in the past week and prices are likely to go even higher.

The in-state price is a penny more than the national average and 15 cents higher than at the same time last year.

AAA found self-serve, regular selling as low as $3.48 per gallon and as high as $3.85.

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National Native American magazine going digital

SIOUX FALLS, S.D. — A weekly magazine that is a leading source of Native American news is abandoning print in favor of an online-only presence, in a cost-cutting move that worries some readers who fear they may lose access because of the switch.

This Week From Indian Country Today, a New York City-based publication owned by the Oneida Nation, will become an online newsletter starting with its July 17 issue.

"In the age we live in, technology is really advanced to a point that we're trying to make sure we're serving what our audience really needs," said Indian Country Today publisher Ray Halbritter. Converting to an online newsletter that is emailed to subscribers will eliminate some of the lag time between when news happens and when it appears in writing, he said.

The magazine, which was started in 1981, provides a mixture of straight news stories and commentary by tribal members, and it is often a way for politicians to get their messages out to Native American communities. President Barack Obama, Senate Majority Leader Harry Reid and House Speaker John Boehner have all done interviews or written opinion pieces.

For Native Americans on isolated reservations, access to broadband Internet is anything but guaranteed and print media is a staple of life. According to the Federal Communications Commission, just 43 percent of American Indians and Alaska Natives have access to broadband Internet at home, compared to 65 percent of the U.S. population as a whole. Access on reservation and tribal lands is even scarcer, at less than 10 percent, although there are government efforts to expand such access.

Suzanne Sobel, the managing director of Indian Country Today Media Network, said she's not worried about the statistics.

"The reservations that don't have broadband Internet, quite frankly they were also having a hard time getting the magazine too," she said. Sobel said most tribal members on such reservations use their smartphones to get information. She noted that the website had 550,000 unique visitors in June and continues to grow.

Sobel, a former executive with Martha Stewart Living Omnimedia, and creative director Christopher Napolitano, former editor at large for Playboy magazine, are leading Indian Country Today's transition to digital-only. The evolution has been in the works for some time, Sobel said. Halbritter said the change will allow the company to expand its international coverage of indigenous issues and work with more contributors.

Sobel and Halbritter declined to say how much money will be saved with the elimination of the print magazine, which had a circulation of about 15,000. A year's subscription to the online newsletter will cost the same as the printed magazine did — a little less than $20.

Sheena Louise Roetman, a 28-year-old Atlanta resident who is Creek and Lakota, describes Indian Country Today as a trustworthy source that she considers to be the "Native version of the New York Times." She said she worries that by eliminating print copies of Indian Country Today, some tribal members — especially older ones — will have less access to the information.

Others think the digital-only strategy makes sense for tribal nations working to improve access to the Internet.

The Seneca Nation in New York, for example, has two reservations with basic dial-up Internet, but the tribal government is working to upgrade to broadband, said Samantha Nephew, a 23-year-old marketing specialist for a Seneca Nation-owned corporation. She said she's a regular reader of the magazine.

"I think when that happens, the Seneca Nation members will have more incentive to check out (Indian Country Today) digitally," she said.

Rhonda LeValdo, the president of the Native American Journalist Association, said Indian Country Today's switch to digital-only could be seen as a positive step for Native communities because it may free up resources for more reporting and accelerate the push for greater access to broadband. And, she added, traditional tribal newspapers may see people who prefer print turning to them for their news.

Tim Giago, the magazine's founder and former owner, is counting on it. Giago, a Native American journalist who lives in South Dakota, founded the Lakota Times in 1981 and later changed its name to Indian Country Today. He sold it to the Oneida Nation before starting another Native American newspaper, the Native Sun News, which doesn't publish stories on its website.

Giago said that for people to understand how Native Americans consume news, they only need to look at the Navajo Times, the newspaper that covers the Navajo Nation.

"It (The Navajo Times) is now the largest Indian newspaper in America and it also continues to grow because most of its readers prefer to hold a real newspaper in their hands and many on the Navajo Nation do not have access to the Internet," he said.

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Follow Kristi Eaton on Twitter at https://twitter.com/kristieaton

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Survey: Patient access mixed in Mass.

BOSTON — A new survey finds roughly half of the state's primary care practices are closed to new patients and wait times to see a primary care physician remain long.

The findings are in the Massachusetts Medical Society's annual patient access study released Monday.

According to the study, 51 percent of family physicians and 45 percent of internists are currently accepting new patients.

A year ago, the survey found 50 percent of family doctors and 51 percent of internists open to new patients.

The latest survey found the average wait time for a non-emergency appointment with a primary care doctor to be 39 days for family physicians, an improvement from 44 days last year. But the wait time to see an internist was 50 days, up from 44 days a year ago.

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US economy looks weaker after subpar retail sales

WASHINGTON — The U.S. economy appears to be weaker than many economists had thought after a report Monday showed consumers spent cautiously in June at retail businesses.

Americans bought more cars and trucks, furniture and clothes. But they cut back almost everywhere else. They spent less at restaurants and bars, reduced purchases at home improvement stores and bought fewer computers and electronics.

Overall retail spending rose 0.4 percent in June from May, the Commerce Department said. But excluding volatile spending on autos, gasoline and building supplies, so-called core retail sales rose just 0.15 percent. That's the weakest gain since January.

Core sales are used to calculate overall economic growth. Economists said the deceleration in June could slow growth in the April-June quarter to an annual rate below 1 percent. That's weaker than many had thought and would be down from a tepid 1.8 percent rate in the January-March quarter.

Many still expect growth will rebound in the second half of the year, fueled by more hiring and less drag from an increase in Social Security taxes. But the weaker spending report was a disappointing sign.

"It is disconcerting that retail sales growth lost more momentum as the second quarter progressed," said Paul Dales, senior U.S. economist at Capital Economics.

Other reports Monday added to worries that growth had weakened in the second quarter. Businesses increased their stockpiles only slightly in May, signaling fewer orders of factory-made goods.

And economic growth in China slowed in the April-June quarter to its lowest rate in more than two decades. That could hold back U.S. manufacturing and exports, both of which had already been struggling this year.

Analysts are still hopeful that U.S. economic growth will start to rebound this summer and accelerate to around a 2.5 percent annual rate in the second half of the year.

The biggest reason for the optimisms is an improving job market. Employers have added an average 202,000 jobs a month this year, up 180,000 in the previous six months. Stronger job gains should increase income and boost consumers' spending, which drives 70 percent of economic activity.

Economists also point to a housing recovery that continues to gain momentum. That's lifting home prices, making Americans feel wealthier and more likely to spend. It's also adding construction jobs.

"Retail sales will continue to grow at a moderate clip, as gains in disposable income stemming from moderate job creation outweigh the lingering effects of payroll tax increases," said Martin Schwerdfeger, senior economist at TD Economics.

There were some encouraging signs in the retail sales report that consumers remain confident in the economy. Spending on cars and trucks rose 1.8 percent — the biggest gain since November. And furniture sales jumped 2.4 percent last month. Both gains show many consumers are still making large purchases.

Over the past year, car and truck sales have risen 11.4 percent, according to the government's data. That shows autos remain the most vibrant part of the retail economy.

Earlier this month the nation's automakers also reported robust sales in June. Sales totaled 7.8 million from January through June, the best first half since 2007. And the outlook for the rest of 2013 is just as strong. Wider credit availability and hot-selling new vehicles are helping to boost sales. Demand for big pickups has been a key factor in higher sales.

Monday's government report comes after some retail chains reported their best sales gains since January. Revenue at stores opened at least a year rose 4.1 percent in June compared with the same month a year ago, according to a preliminary tally of 13 retailers by the International Council of Shopping Centers.

June is typically when stores clear out summer merchandise to make room for fall goods. Brisk sales mean that stores probably won't be stuck with piles of summer clothes that need to be cleared as back-to-school sales kick off in late July.

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Cuban athletes and artists get in on capitalism

HAVANA — Cuban track and field legend Javier Sotomayor has launched a sports bar named for the height of his world record high jump. An Olympic volleyball champion has opened a swanky new Italian restaurant, and salsa star Hugo Morejon has a first-rate automotive repair shop.

Armed with money and name recognition, Cuban athletes and artists who have long enjoyed a far more luxurious lifestyle than their compatriots on the Communist-run island are embracing the new world of private enterprise. In doing so, the celebrities have exposed themselves to more than a little envy from a population already weary of the perks they've long had.

At least a dozen athletes and artists have started private businesses since President Raul Castro began opening Cuba's economy to limited capitalism in 2010, and others have quietly invested in such establishments. Many of the spots have opened in recent months.

At Sport-Bar 2.45, patrons sip icy-cold Cuban beer and eat pizzas while perusing memorabilia from Sotomayor's career, such as a white athletic shoe he used in competition and several of his awards and medals. The bar is named after the height in meters (equivalent to 8 feet, 1/2 inch) of Sotomayor's world record high jump, set in 1993.

The record stands 20 years later, but the 45-year-old Sotomayor has moved on from his past as one of the Communist world's great athletes, and now considers himself a businessman. He opened the bar in the front garden of his home, with his ex-wife as a co-investor, and it is often filled with young Cubans and tourists.

"I feel good about what I am doing now; for me it is a challenge," Sotomayor said. "I had success in competition in the high jump. Now, we will see if the bar reaches these same heights."

Salim Lamrani, a professor at the Sorbonne University in Paris who writes extensively about Cuba, said the embrace of the reforms by such stars sends a strong message to other islanders that change is here to stay.

"These celebrity businesses are powerful publicity for the new policies of the Cuban government," Lamrani said, which "in the future will be increasingly based on the private sector."

At the Van Van Garage, gleaming Fiats, Mercedes and Peugeots overflow into the street outside, and uniform-wearing mechanics use a desktop computer to show clients which parts need repair. The garage, owned by trombone player Hugo Morejon, is a striking departure from most Cuban repair shops, which labor to keep hulking 1950s Chevys on the road using homemade parts fashioned from scrap metal.

Morejon, a member of Cuba's most famous contemporary salsa group, Los Van Van, doesn't need the money. But he says he's always loved cars and opened the shop after the Cuban government legalized some forms of private enterprise in 2010, hiring several young mechanics to handle the workload.

"We work like a cooperative," Morejon explained. "I am the owner but I don't earn any more than them."

He acknowledged his recognizable name helps draw clients, but said more has been needed to make them regulars.

"Musical fame has helped me, but only the first time," said Morejon, who recently returned from a European tour, his suitcases filled with spare auto parts unavailable in Cuba. "After that, one must give quality service or the clients won't return."

Other Cuban stars have joined the party: Singer Kelvis Ochoa has a restaurant, and comic Robertico has opened a cafe. Even former Foreign Minister Roberto Robaina, who was fired by Fidel Castro in 1999, has opened a popular restaurant called Chaplin.

Cubans love their music and sports stars, but they also envy their new cars and grand homes, their international travel and the imported goodies they bring back. Musical stars can sign record contracts abroad, but they must pay the state part of their earnings. Even athletes, who earn tiny salaries by global standards, often get perks such as cars and travel stipends that are out of most Cubans' reach.

The perception of artists as part of a jet set elite was captured in the 2011 Cuban comedy "Habana Station," a prince-and-the-pauper tale that compares the son of a poor family and the child of a Cuban musician living a life of relative luxury in a country where the average worker earns $20 a month.

"Most people couldn't even dream of opening a bar like Sotomayor's," said Roberto Blanco, a 29-year-old used books seller. "In fact, most people on a salary don't even have the money to buy a drink or a pizza at these places."

The celebrities shrug off the criticism, saying they are doing what the Communist government wants: investing money at home and creating much-needed jobs.

"I am contributing to my country," said Morejon. "I am giving work to three young men and offering a useful service."

Triple Olympic volleyball champion Mireya Luis has hired five people at her Italian restaurant in Havana's upscale Miramar neighborhood. Chef Orlando Montoya said that with tips he earns many times the $14 a month he got at his last state job.

"I came to ask for a job here when all I had was a pair of tennis shoes," he said. "I work from midday until early in the morning, but now I have six pairs of tennis shoes and a little girl who doesn't want for anything."

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Follow Anne-Marie Garcia on Twitter: www.twitter.com/AnneMarie279

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Gallup agrees to pay $10.5M to settle allegations

WASHINGTON — The Justice Department says the Gallup Organization has agreed to pay $10.5 million to settle allegations that the polling and market research firm improperly inflated prices for proposed contracts with the U.S. Mint and State Department.

The settlement also resolves allegations that Gallup engaged in improper employment negotiations with an official from the Federal Emergency Management Agency in order to obtain a FEMA subcontract at an inflated price.

In January, the former FEMA official, Timothy W. Cannon, pleaded guilty to negotiating a job for himself at the Gallup Organization while supervising the firm's FEMA contract.

Cannon's conduct came to light in a lawsuit a fired Gallup employee brought alleging that Gallup filed false claims on contracts with the U.S. Mint, the State Department, FEMA and the Office of Personnel Management.

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Markets shored up by China's 7.5 percent growth

LONDON — Relief over China's economic growth rate shored up stock markets Monday despite weaker than anticipated U.S. retail sales figures.

China, the world's second-largest economy grew 7.5 percent from a year earlier in the second quarter. Though the figure is down on the previous quarter's 7.7 percent, there had been fears it might fall below 7 percent. A sharp drop would hurt companies around the world that have become increasingly reliant on breakneck Chinese growth to boost earnings.

"Despite the fact that the China growth figure represents an extension of the overall slowing trajectory, being the ninth slowdown in the past ten quarters, equity markets seemed broadly relieved," said Brenda Kelly, market strategist at IG.

Following a 1 percent rise in the Shanghai Composite Index to 2,059.39, European stock markets posted solid gains. The FTSE 100 index of leading British shares closed up 0.6 percent at 6,586.11, while Germany's DAX rose 0.3 percent to 8,234.81. The CAC-40 in France ended 0.1 percent higher at 3,878.58.

In the U.S., the Dow Jones industrial average was up 0.1 percent at 15,479, while the broader S&P 500 was steady at 1,680.

Wall Street was not as strong as futures markets had been predicting. That was due to news that U.S. retail sales only grew 0.4 percent in June from the month before. That was half the rate expected and may mean downward revisions to U.S. second quarter growth forecasts. Retail sales account for around 70 percent of U.S. economic activity.

"After today's report, there is a very real possibility that Q2 GDP will be less than 1 percent for the second time in the last three quarters," said Dan Greenhaus, chief global strategist at BTIG.

Though the figures suggest the U.S. economy is not growing as quickly as anticipated, they may mean the U.S. Federal Reserve starts reducing its monetary stimulus later. For weeks the Fed's monetary stance has been the main driver in markets. The Dow and the S&P 500 struck all-time highs last week partly on an indication from the Fed that the monetary stimulus may be in place for longer than previously expected. At the moment, the Fed is buying around $85 billion of assets in the markets, and that's helped prop up stocks for months.

Some comfort came from forecast-busting earnings from Citigroup. The bank made $1.25 per share during the second quarter, beating the $1.18 per share predicted by analysts polled by FactSet.

It's a busy week on the U.S. corporate reporting front. Other reports expected this week include Coca-Cola, Goldman Sachs, Johnson & Johnson, Bank of America, Google and Microsoft. General Electric caps off the week Friday.

The dollar has faltered in recent days as expectations of a tightening in the Fed's policies have eased. It clawed back some ground Monday, with the euro 0.2 percent lower at $1.3037. The dollar was 0.7 percent higher at 100.06 yen.

Earlier in Asia, Hong Kong's Hang Seng added 0.1 percent to 21,303.31 and Sydney's S&P/ASX 200 gained 0.1 percent to 4,981.10. South Korea's Kospi rose 0.3 percent 1,875.16. Japan's financial markets were closed for a public holiday.

Oil prices gave up some recent gains. Benchmark crude for August delivery was down 97 cents at $104.98 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.04 to $105.95 in New York on Friday, driven higher by continuing tensions in Egypt and a sharp drop in U.S. crude stockpiles.

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