Isnin, 5 Ogos 2013

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US stocks end mostly lower

Posted: 05 Aug 2013 03:22 PM PDT

NEW YORK: US stocks ended mostly lower on Monday on fairly quiet trading during which some investors fretted about the possible pullback of the Federal Reserve's aggressive bond-buying programme.

The Dow Jones Industrial Average was down 46.23 points (0.30 percent) at 15,612.13.

The broad-based S&P 500 dropped 2.53 points (0.15 percent) to 1,707.14, while the tech-rich Nasdaq Composite Index added 3.36 points (0.09 percent) at 3,692.95.

The US growth outlook appeared firmer as the Institute for Supply Management's July purchasing managers index for the services sector showed a healthy jump in activity.

That raised some concerns that the Federal Reserve might taper its bond-buying programme "sooner rather than later," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

Monday's trade was "just a modest pullback," Skrainka added.

Some investors also looked at comments from Federal Reserve Bank of Texas President Richard Fisher that advocated a quick tapering.

"Anytime there is Fed chatter, there is an impact on the market," said Michael James, managing director of equity trading at Webush Securities, adding that the market could easily reverse itself Tuesday.

Apple rose 1.5 percent after the Obama administration overturned an International Trade Commission ban on some of the tech giant's products, stepping into a long-running patent dispute between Samsung and Apple.

Meat processor and marketer Tyson Foods rose 4.1 percent after earnings bested analyst estimates by 9 cents at 69 cents a share. The company also signalled that 2013 revenues would be above market expectations.

Semiconductor and wireless technology producer Qualcomm slipped 0.8 percent after Piper Jaffray cut its rating on the firm on concerns about softening high-end smartphone demand.

Industrial and construction tool supplier Fastenal dropped 1.9 percent after monthly sales showed an increase of 2.9 percent in July compared with last year, below the 5 percent expected, according to a Credit Suisse note. -- AFP

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Terror Threat Extends US Embassy Closings Through Aug. 10 (1) - Businessweek

Posted: 05 Aug 2013 08:40 AM PDT

At least 19 U.S. embassies and consulates in predominantly Muslim countries will remain closed through the week as the State Department stays on guard for potential terrorist attacks.

Yesterday's initial one-day closing of 22 U.S. outposts followed the State Department's issuance of a worldwide travel alert warning of planned attacks in the Middle East, North Africa and South Asia by al-Qaeda or its affiliates. The decision to extend the selective shutdown through Aug. 10 "is not an indication of a new threat stream," Jen Psaki, a department spokeswoman, said in an e-mail.

"Out of an abundance of caution, we've decided to extend the closure of several embassies and consulates including a small number of additional posts," she said. This is "merely an indication of our commitment to exercise caution."

President Barack Obama instructed his national-security team last week to "take all appropriate steps to protect the American people in light of a potential threat occurring in or emanating from the Arabian Peninsula," according to a White House press release. The terrorist threat that prompted the closure is "very credible" and "specific as to how enormous it was going to be," lawmakers from both parties said.

Essential Staff

Britain's embassy in Yemen, which was also closed yesterday because of heightened security concerns, will remain shut until the end of the Muslim Eid holiday this week, the Foreign Office said on its website. The mission is operating with only essential staff. The U.K. has urged all Britons to leave Yemen.

France will keep its embassy in the Yemeni capital, Sanaa, closed though Aug. 7, the Foreign Ministry in Paris said. The German mission there remains shut as well, Foreign Ministry spokesman Andreas Peschke told a news conference in Berlin, though he said there's no evidence of specific terror threats.

"High-level people from al-Qaeda in the Arabian Peninsula are talking about a major attack," U.S. Representative C.A. "Dutch" Ruppersberger of Maryland, the top Democrat on the House Intelligence committee, said on ABC's "This Week" program that aired yesterday. "The good news is that we've picked up intelligence."

The information includes communications among known terrorists intercepted by the National Security Agency in recent days, according to two U.S. officials who asked not to be identified discussing classified intelligence matters. They declined to offer specifics about the exchanges, only saying the content is credible and disturbing.

Dates Given

"This threat was so specific as to how enormous it was going to be and also certain dates were given," Representative Peter King, a New York Republican who serves on both the House Intelligence and Homeland Security committees, said on "This Week." While an attempted attack is most likely to happen in the Middle East, "It could be in Europe, it could be in the United States."

The primary focus is on al-Qaeda in the Arabian Peninsula, a terrorist group based in Yemen and a remote part of Saudi Arabia, according to King and the two U.S. officials.

"This is the most serious threat that I've seen in the last several years," Senator Saxby Chambliss of Georgia, the top Republican on the chamber's Intelligence Committee, said on NBC's "Meet the Press" program. "There's been an awful lot of chatter out there" among terrorists, Chambliss said, noting it's "reminiscent of what we saw pre-9/11."

Twenty-two embassies and other diplomatic posts were closed yesterday, including in Libya, Egypt, Yemen and Jordan. Some of them were removed from the list of closures for the week, while others were added.

Possible Targets

"Current information suggests that al-Qaeda and affiliated organizations continue to plan terrorist attacks both in the region and beyond, and that they may focus efforts to conduct attacks in the period between now and the end of August," the department said last week. The attacks "may involve public transportation systems and other tourist infrastructure."

The warning of a potential attack by al-Qaeda and other terrorist organizations is unusual this time partly because the groups are so "widely dispersed," said Michael Chertoff, who was homeland security secretary under President George W. Bush.

"It's actually quite rare to have this broad and yet so alarming and specific a warning be publicly disseminated," Chertoff, who founded a security consulting company in Washington, told "This Week."

Benghazi Attack

The State Department pledged to increase security at embassies and consulates after the attack on a U.S. mission in Benghazi, Libya, on Sept. 11, 2012, led to the death of U.S. Ambassador Chris Stevens and three other Americans. The Central Intelligence Agency said it had warned the State Department repeatedly of terrorist threats in Benghazi before the attack, according to e-mails released later by the White House.

The State Department had issued a similar warning of possible attacks before that.

The latest alert and embassy closures may be an effort to disrupt al-Qaeda operations, according to Michael Hayden, who served as CIA director under the George W. Bush administration.

The announcements may be designed to put al-Qaeda "on the back foot, to let them know that we're alert and we're on to at least a portion of this plot line," Hayden said yesterday on "Fox News Sunday."

Too Ambitious

The scale of the attacks discussed in the intercepted al-Qaeda communications, coupled with the fact that the messages violated the terrorist group's known rules about avoiding mobile and satellite phones and online conversations in favor of couriers, made some intelligence officials suspicious about the group's intent, the two U.S. officials said.

The attacks the terrorists discussed were too ambitious in size and scope to ignore, both officials said, and that may have been deliberate. It's also possible the discussions were intended to put al-Qaeda back in the headlines after years of foiled plots. The officials spoke on the condition of anonymity because they aren't authorized to speak publicly.

At the same time, said both officials, it's not time to exhale because the list of targets and the timing in the intercepted communications may have been deliberately misleading, or the planners may have gone back to the drawing board after they learned that their plans had been discovered.

The U.S. warning came days after al-Qaeda's leader, Ayman al-Zawahiri, urged his followers in a speech posted on jihadist websites to attack U.S. sites as a response to American drone strikes in Pakistan and Yemen, according to the SITE Intelligence Group, which monitors terrorist groups.

To contact the reporters on this story: Michelle Jamrisko in Washington at mjamrisko@bloomberg.net; Nicole Gaouette in Washington at ngaouette@bloomberg.net

To contact the editor responsible for this story: Romaine Bostick at rbostick@bloomberg.net

Whitey Bulger was no Robin Hood, but one of the most vicious, violent criminals ... - Boston.com

Posted: 05 Aug 2013 08:17 AM PDT

James "Whitey" Bulger was "one of the most vicious, violent criminals ever to walk the streets of Boston'' and he was no Robin Hood, despite the myth that he kept drugs off the streets of South Boston, a federal prosecutor said during his closing argument today at the notorious gangster's federal trial.

Whitey Bulger's booking photo after his 2011 arrest

Speaking in US District Court, where the trial began in mid-June, Assistant US Attorney Fred Wyshak summarized the evidence that prosecutors say proves beyond a reasonable doubt that Bulger was a fearsome gang leader who rampaged through Boston's underworld in the 1970s and 1980s and was involved in 19 murders.

"We've been here for two months, and we're near the end," Wyshak told the jurors as US District Court Judge Denise J. Casper looked on. "There's no doubt that the evidence you heard in this case is deeply disturbing."

Wyshak reminded jurors that key evidence against Bulger came from his former allies, especially confessed hitman John Martorano and Bulger's one-time partner, Stephen "The Rifleman" Flemmi, both of whom implicated Bulger in murder, extortion, and other violent crimes.

Flemmi, Wyshak noted, was an informant for the FBI — just as Bulger was. Wyshak also said that because of Bulger's connection to corrupt FBI agent John Connolly Jr., Bulger's FBI handler, at least four people lost their lives.

"It does not matter that Mr. Bulger was an FBI informant when he put the gun to Arthur Barrett's head and pulled the trigger,'' Wyshak said. "Whether he was an informant or not, he's guilty of murder."

Barrett was murdered in July 1983. Bulger allegedly killed him because he and his gang wanted money Barrett had stolen during a 1980 Medford bank heist.

Wyshak also attacked one of the myths that surrounded Bulger during his years as the leader of the Winter Hill Gang and as one of the best-known criminals in his South Boston neighborhood: the notion that Bulger was a criminal, but not a drug dealer.

"This is not about a Robin Hood story about a man who keeps angel dust and heroin out of South Boston," Wyshak said. He said the reality instead was that South Boston was flooded with drugs, with Bulger's explicit approval and direct involvement.

Wyshak also reminded jurors that Connolly was close to Bulger's brother, William, the former Senate president and president of the University of Massachusetts system. William Bulger, the prosecutor said, was Connolly's advocate when Connolly sought to be picked as Boston police commissioner.

William Bulger was not in the courtroom today, although two of his adult children were on hand, sitting next to their uncle, John "Jackie" Bulger, who was convicted of twice lying to federal grand juries and who helped create fake identity cards for Whitey while he was on the run.

Connolly tipped Bulger off that he was about to be indicted, and Bulger ran from Boston, eventually spending 16 years on the run before he was tracked down in 2011 to Santa Monica, Calif. where he was living in a rent-controlled apartment with girlfriend, Catherine Greig.

Wyshak told jurors that Bulger was long protected by corrupt elements of the FBI, but that federal law enforcement had shifted gears and was ready to prosecute him until he went on the run. The result of that action by Bulger, Wyshack said, was that jurors heard during the trial about crimes that happened 20 or more years go.

"We are here in 2013 because that man ran away,'' said Wyshak, pointing directly at Bulger.

He urged jurors to accept the testimony of government, even though decades have passed since what they witnessed took place. Those moments were seared into their memories by the intensity of the event, he said, just as a fan would remember for years watching Red Sox player Dustin Pedroia hitting a grand slam in the bottom of the ninth inning.

The closings come after Bulger rose to his feet Friday and told Casper that he would not take the stand in his own defense, bringing an anticlimactic end to a trial that had lasted for seven weeks. Bulger, who had repeatedly vowed to testify since his capture in California two years ago, instead complained he was not given a fair trial.

"As far as I'm concerned, I didn't get a fair trial, and this is a sham," Bulger told Casper with jurors out of the courtroom. "Do what youse want with me. That's my final word."

The suspense had been building as defense lawyers waited until the last of 72 witnesses had testified, on the last day of 35 days of testimony, to announce that Bulger would not testify.

While the jury remained outside the courtroom, Casper asked Bulger if he had made his decision "voluntarily and freely."

"I'm making the choice involuntarily," Bulger said in a clear, calm voice as he stood before the judge, dressed in a long-sleeved navy shirt and jeans.

"I feel that I've been choked off from having an opportunity to give an adequate defense and explain about my conversation and agreement with [former federal prosecutor] Jeremiah O'Sullivan.

"For my protection of his life, in return, he promised to give me immunity," Bulger said.

Bulger's lawyers contended that O'Sullivan, the former head of the New England Organized Crime Strike Force, offered Bulger immunity decades ago.

But Casper barred the immunity defense, ruling that Bulger had offered no documentation to support his assertion and that even if O'Sullivan had made such a promise, he had no authority to do so. O'Sullivan died in 2009.

In past interviews with the Globe, Connolly credited Bulger with warning him that local Mafia members were stalking O'Sullivan in the 1980s and knew the route he walked from work to the commuter train. Connolly said he passed that information to O'Sullivan.

Bulger faces a sweeping federal racketeering indictment that, in addition to the murders, charges him with extortion, money laundering, and possession of illegal weapons. Prosecutors have portrayed him as a long-time, prized FBI informant who killed several people after being warned by a corrupt FBI agent that they were cooperating against him.

Bulger has pleaded not guilty to all charges and is being held without bail.

Shelley Murphy can be reached at shmurphy@globe.com. Follow her on Twitter @shelleymurph. Milton J. Valencia can be reached at mvalencia@globe.com. Follow him on Twitter @miltonvalencia. John R. Ellement can be reached at ellement@globe.com. Follow him on Twitter @JREbosglobe.
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