Thứ Bảy, 11 tháng 7, 2009
Thứ Ba, 7 tháng 7, 2009
Chủ Nhật, 5 tháng 7, 2009
Sailor gunned down on sentry duty, Navy says
-- A sailor found dead earlier this week at California's Camp Pendleton was shot while standing sentry, and a fire was set in an attempt to cover up evidence, the U.S. Navy said.
Seaman August Provost, shown on his MySpace page, was killed while on sentry duty at Camp Pendleton.
The death of Seaman August Provost of Houston, Texas, is being investigated as a homicide, Capt. Matt Brown told reporters on Thursday. A sailor is in custody in the case, Brown said.
Although at least one of Provost's relatives said she believes he was killed because of his sexual orientation and his race, Brown said there was no indication the killing was a hate crime. A U.S. congressman also said on Friday there are indications Provost may have been killed because of his sexual orientation.
Provost was killed while he was standing guard as a sentry for the Assault Craft Unit 5 compound at Camp Pendleton, Brown said. He had begun the shift at 11:30 p.m. Tuesday, and his body was discovered by his replacement around 3:30 a.m. Wednesday.
"Preliminarily, it appears that Seaman Provost suffered gunshot wounds and it appears that someone attempted to destroy evidence by lighting a fire at Seaman Provost's assigned place of duty," Brown said.
Provost's aunt, Rose Roy, of Beaumont, Texas, said by telephone on Friday that her nephew had told her he was being harassed because of his sexual orientation and because he was African-American. She described him as bisexual.
"He mentioned it to me and a couple other family members," she said of the harassment, and said he had first told her about it sometime last year.
"He was frustrated by it," she said. She said she had advised him to speak to someone of higher rank, but said she wasn't sure if he had done so.
"He went to serve and protect, but he didn't get the protection," she said. Brown said Thursday that he had no information on claims of harassment.
Asked whether she believed her nephew was killed because of race and sexual orientation, she said, "In my heart, I do." She added, "it was like an execution-style killing, and nobody does that unless you have that kind of hatred in your heart."
The Navy has one sailor in custody who "has been linked to the commission of this crime through both physical evidence and his own statement," Brown said. Watch Brown talk about the killing as a random act »
He did not identify the sailor, who has not been charged with wrongdoing. It is unclear if the sailor served with Provost in the same unit.
A second sailor whom authorities initially questioned has since been released, Brown said.
He said the Navy has no indication that Provost's death is a hate crime, although he emphasized the investigation is ongoing.
"What I can tell you, unequivocally at this point, based on the preliminary information that we have, is that regardless of the person standing watch in that sentry station, this crime would have most likely been carried out in the same way," he said.
"In other words, another sailor could have been on that post and would have been the victim of this crime."
Rep. Bob Filner, a California Democrat, has called for a full and transparent investigation. Asked Friday if Provost was killed because of his sexual orientation, he said, "There are indications that that's the case. His family says he was harassed."
Filner said he was on Camp Pendleton hours after Provost's body was found, although no one told him of the killing.
"When I was on the base for another event, the commander of the base was sitting next to me and never mentioned a word, which I find very strange," he said.
He said he was asking for the "truth of what happened."
"We're going to ask, if I may coin a phrase, and we hope that they tell," he said.
Roy said her nephew was "a good kid," who didn't have a "bad bone in his body" and had loved the Navy. He joined the service in March 2008, according to Brown.
"He was a people person," Roy said. "If he could give you the shirt off his back, he would."
A funeral has been planned for July 10 in Houston, she said.
"We loved him dearly," she said.
-- A sailor found dead earlier this week at California's Camp Pendleton was shot while standing sentry, and a fire was set in an attempt to cover up evidence, the U.S. Navy said.
Seaman August Provost, shown on his MySpace page, was killed while on sentry duty at Camp Pendleton.
The death of Seaman August Provost of Houston, Texas, is being investigated as a homicide, Capt. Matt Brown told reporters on Thursday. A sailor is in custody in the case, Brown said.
Although at least one of Provost's relatives said she believes he was killed because of his sexual orientation and his race, Brown said there was no indication the killing was a hate crime. A U.S. congressman also said on Friday there are indications Provost may have been killed because of his sexual orientation.
Provost was killed while he was standing guard as a sentry for the Assault Craft Unit 5 compound at Camp Pendleton, Brown said. He had begun the shift at 11:30 p.m. Tuesday, and his body was discovered by his replacement around 3:30 a.m. Wednesday.
"Preliminarily, it appears that Seaman Provost suffered gunshot wounds and it appears that someone attempted to destroy evidence by lighting a fire at Seaman Provost's assigned place of duty," Brown said.
Provost's aunt, Rose Roy, of Beaumont, Texas, said by telephone on Friday that her nephew had told her he was being harassed because of his sexual orientation and because he was African-American. She described him as bisexual.
"He mentioned it to me and a couple other family members," she said of the harassment, and said he had first told her about it sometime last year.
"He was frustrated by it," she said. She said she had advised him to speak to someone of higher rank, but said she wasn't sure if he had done so.
"He went to serve and protect, but he didn't get the protection," she said. Brown said Thursday that he had no information on claims of harassment.
Asked whether she believed her nephew was killed because of race and sexual orientation, she said, "In my heart, I do." She added, "it was like an execution-style killing, and nobody does that unless you have that kind of hatred in your heart."
The Navy has one sailor in custody who "has been linked to the commission of this crime through both physical evidence and his own statement," Brown said. Watch Brown talk about the killing as a random act »
He did not identify the sailor, who has not been charged with wrongdoing. It is unclear if the sailor served with Provost in the same unit.
A second sailor whom authorities initially questioned has since been released, Brown said.
He said the Navy has no indication that Provost's death is a hate crime, although he emphasized the investigation is ongoing.
"What I can tell you, unequivocally at this point, based on the preliminary information that we have, is that regardless of the person standing watch in that sentry station, this crime would have most likely been carried out in the same way," he said.
"In other words, another sailor could have been on that post and would have been the victim of this crime."
Rep. Bob Filner, a California Democrat, has called for a full and transparent investigation. Asked Friday if Provost was killed because of his sexual orientation, he said, "There are indications that that's the case. His family says he was harassed."
Filner said he was on Camp Pendleton hours after Provost's body was found, although no one told him of the killing.
"When I was on the base for another event, the commander of the base was sitting next to me and never mentioned a word, which I find very strange," he said.
He said he was asking for the "truth of what happened."
"We're going to ask, if I may coin a phrase, and we hope that they tell," he said.
Roy said her nephew was "a good kid," who didn't have a "bad bone in his body" and had loved the Navy. He joined the service in March 2008, according to Brown.
"He was a people person," Roy said. "If he could give you the shirt off his back, he would."
A funeral has been planned for July 10 in Houston, she said.
"We loved him dearly," she said.
Does photo found in cell show children's grave?
-- Police wonder whether a photograph found in a prison cell a decade ago might lead to the bodies of two children who disappeared and are believed to have been murdered.
A stone marker in the woods may depict the final resting place of Michael and Karen Reinert.
Karen and Michael Reinert, who lived with their divorced mother in Ardmore, Pennsylvania, were 11 and 10 when their mother was murdered and they vanished in June 1979.
A former high school English teacher was convicted in the murders of Susan Reinert and her children. But the children have never been found.
The photo turned up in the prison cell of William S. Bradfield Jr., who died of heart failure in 1998 while serving three life sentences for the Reinert murders, according to investigators.
The photograph, which police say was developed in 1986, depicts a stone marker that resembles a hooded figure. The stone is surrounded by fallen leaves, with woods in the background.
Although dozens of tips came in when the photo was released a decade ago, investigators have been unable to locate the marker, said Trooper Brian Krause of the Pennsylvania State Police. He made the photo available again in response to media inquiries on the 30th anniversary of the Reinert murders.
Krause, who works out of the state police barracks in Harrisburg, is the lone investigator on a case that once occupied a task force of more than a dozen state police detectives and FBI agents. He described the investigation as open but "inactive."
Krause said he still receives occasional tips and follows up on them.
Susan Reinert's body was found early June 25, 1979, in the hatchback of her car. The vehicle was parked in the lot of a hotel in Harrisburg, miles from Reinert's home in Philadelphia's Main Line suburbs.
Reinert and Bradfield were English teachers at Upper Merion High School in King of Prussia, Pennsylvania.
The school's former principal, Jay C. Smith, also was convicted in the case in 1986, but the conviction was overturned on appeal in 1992. The appeals court cited improper hearsay testimony and said prosecutors withheld evidence from Smith's defense. Smith remained free until his death in May.
Prosecutors have long said that Bradfield and Smith plotted the murders together, with the motive of money. Reinert had named Bradfield as beneficiary of her estate and life insurance policies worth $730,000. She thought she was going to marry him.
At the time of the slaying, Smith was in trouble with the law. He was sentenced in Harrisburg on theft and weapons convictions on the same day Reinert's body was found there.
Until they died, Smith and Bradfield both denied that they had killed Susan Reinert and their children. At their trials, each man pointed the finger at the other.
The photograph was found among dozens of boxes of Bradfield's belongings. They also include some writings that appear to be in code.
Krause said that at least one person who was never charged in the case may have intimate knowledge of the Reinert slayings. That person may know what happened to the children, he said.
"I would certainly say that there is a possibility of a third person out there -- a probability," Krause said.
Krause asks anyone with information about what happened to Karen and Michael Reinert to call 717-671-7537.
-- Police wonder whether a photograph found in a prison cell a decade ago might lead to the bodies of two children who disappeared and are believed to have been murdered.
A stone marker in the woods may depict the final resting place of Michael and Karen Reinert.
Karen and Michael Reinert, who lived with their divorced mother in Ardmore, Pennsylvania, were 11 and 10 when their mother was murdered and they vanished in June 1979.
A former high school English teacher was convicted in the murders of Susan Reinert and her children. But the children have never been found.
The photo turned up in the prison cell of William S. Bradfield Jr., who died of heart failure in 1998 while serving three life sentences for the Reinert murders, according to investigators.
The photograph, which police say was developed in 1986, depicts a stone marker that resembles a hooded figure. The stone is surrounded by fallen leaves, with woods in the background.
Although dozens of tips came in when the photo was released a decade ago, investigators have been unable to locate the marker, said Trooper Brian Krause of the Pennsylvania State Police. He made the photo available again in response to media inquiries on the 30th anniversary of the Reinert murders.
Krause, who works out of the state police barracks in Harrisburg, is the lone investigator on a case that once occupied a task force of more than a dozen state police detectives and FBI agents. He described the investigation as open but "inactive."
Krause said he still receives occasional tips and follows up on them.
Susan Reinert's body was found early June 25, 1979, in the hatchback of her car. The vehicle was parked in the lot of a hotel in Harrisburg, miles from Reinert's home in Philadelphia's Main Line suburbs.
Reinert and Bradfield were English teachers at Upper Merion High School in King of Prussia, Pennsylvania.
The school's former principal, Jay C. Smith, also was convicted in the case in 1986, but the conviction was overturned on appeal in 1992. The appeals court cited improper hearsay testimony and said prosecutors withheld evidence from Smith's defense. Smith remained free until his death in May.
Prosecutors have long said that Bradfield and Smith plotted the murders together, with the motive of money. Reinert had named Bradfield as beneficiary of her estate and life insurance policies worth $730,000. She thought she was going to marry him.
At the time of the slaying, Smith was in trouble with the law. He was sentenced in Harrisburg on theft and weapons convictions on the same day Reinert's body was found there.
Until they died, Smith and Bradfield both denied that they had killed Susan Reinert and their children. At their trials, each man pointed the finger at the other.
The photograph was found among dozens of boxes of Bradfield's belongings. They also include some writings that appear to be in code.
Krause said that at least one person who was never charged in the case may have intimate knowledge of the Reinert slayings. That person may know what happened to the children, he said.
"I would certainly say that there is a possibility of a third person out there -- a probability," Krause said.
Krause asks anyone with information about what happened to Karen and Michael Reinert to call 717-671-7537.
Thứ Bảy, 4 tháng 7, 2009
Beyond Prague: 3 fascinating day trips
(Tribune Media Services) -- From its colorful Old Town square to sumptuous Art Nouveau facades, Prague offers plenty to see and do. But if you're willing to leave the city and explore the nearby Bohemian countryside, you'll be rewarded with extraordinary scenery, moving sights and one bone-chilling church.
A trip to Konopiste Castle is like visiting a turn-of-the-20th-century time capsule.
Thirty miles south of Prague is Konopiste Castle, the lavish residence of the Archduke Franz Ferdinand. Its interior dates from about 1900, when the heir of the Hapsburg throne, Franz Ferdinand, moved in.
Money was no object as Ferdinand turned his castle into a palace with all the latest comforts. As one of the first castles in Europe to have an elevator, a shower with hot and cold running water and even a new-fangled flush toilet, Konopiste shows "modern" living around the year 1900.
The archduke had lots of time on his hands because his uncle, Emperor Franz Josef held onto power from 1848 all the way until 1916. While he waited, Ferdinand amassed one of the best collections of weaponry in the world.
For Ferdinand, guns were more than showpieces. Obsessed with hunting, he traveled around the world, shooting at anything with four legs: deer, bear, tigers, elephants and a Polish buffalo. He actually recorded more than 200,000 kills in his log. Keep in mind that royal hunting was a kind of massacre game with his aides sweeping doomed animals into the archduke's eager sights. More than 4,000 trophies decorate the walls and halls of his castle.
Franz Ferdinand did more than his share of shooting. But in 1914, he himself was shot, with his beloved wife Sofia, in Sarajevo. His assassination sparked World War I, which ultimately ended the rule of the Hapsburg family -- whose crown he had waited so long to inherit.
Another compelling sight near Prague is Terezin, a town built in the 1780s with state-of-the-art walls designed to keep out German enemies. In 1941, the Nazis evicted its 7,000 inhabitants and packed in 60,000 Jews, creating the Terezin Concentration Camp. The town's historic walls, originally meant to keep Germans out, were now used by Germans to keep the Jews in. But this was a concentration camp with a devious twist.
Don't Miss
In Depth: Rick Steves' Europe
This was the Nazis' model "Jewish town" -- in reality a concentration camp dolled up for propaganda purposes. Here in what the Nazis called a "self-governing Jewish resettlement area," Jewish culture seemed to thrive, as "citizens" put on plays and concerts, published a magazine, and raised their families in ways that impressed Red Cross inspectors.
The Germans wanted the Jews to accept this new reality -- harsh, but at least life would go on. Children made dolls of their friends "in transport" -- as if relocating was just the start of the next stage of their lives. They drew carefree memories of life before incarceration and made scrapbooks about life in the camp. The museum comes with a recreated barracks with actual belongings of Terezin inmates.
Sinks were installed -- looking good for Red Cross inspectors from the outside world -- but never actually plumbed with water. Tolerable as this sham Jewish town seemed, virtually all of Terezin's Jews ultimately ended up dying either here or at the extermination camps farther east. As you explore the camp, ponder the message of all such memorials: Forgive, but never forget.
About 40 miles east of Prague lies the refreshingly authentic town of Kutna Hora. The town sits upon what was Europe's largest silver mine. Today, visitors play miner and climb down 200 yards below the town to explore the medieval mine shafts that honeycombed the ground under Kutna Hora. Centuries of mining in these narrow wet shafts made the ground under Kutna Hora resemble a giant anthill. The mine was so productive that the standard coinage of much of Europe was minted right here.
Kutna Hora's famous Bone Church looks like a normal church on the outside, but inside, the bones of 40,000 people decorate the walls and ceilings. Fourteenth-century plagues and 15th-century wars provided all the raw material necessary for the creepily creative monks who made these designs.
Those who first placed these bones 400 years ago wanted viewers to remember that the earthly church is a community of both the living and the dead, a countless multitude that will one day stand before God. Later bone-stackers were more interested in design than theology ... as evidenced by the chandelier that includes every bone in the human body.
Whether you're in the mood for castles, sobering WWII history, or a quirky church, Prague's day trips offer something for everyone. You can explore and even get back to the city in time for an evening concert.
(Tribune Media Services) -- From its colorful Old Town square to sumptuous Art Nouveau facades, Prague offers plenty to see and do. But if you're willing to leave the city and explore the nearby Bohemian countryside, you'll be rewarded with extraordinary scenery, moving sights and one bone-chilling church.
A trip to Konopiste Castle is like visiting a turn-of-the-20th-century time capsule.
Thirty miles south of Prague is Konopiste Castle, the lavish residence of the Archduke Franz Ferdinand. Its interior dates from about 1900, when the heir of the Hapsburg throne, Franz Ferdinand, moved in.
Money was no object as Ferdinand turned his castle into a palace with all the latest comforts. As one of the first castles in Europe to have an elevator, a shower with hot and cold running water and even a new-fangled flush toilet, Konopiste shows "modern" living around the year 1900.
The archduke had lots of time on his hands because his uncle, Emperor Franz Josef held onto power from 1848 all the way until 1916. While he waited, Ferdinand amassed one of the best collections of weaponry in the world.
For Ferdinand, guns were more than showpieces. Obsessed with hunting, he traveled around the world, shooting at anything with four legs: deer, bear, tigers, elephants and a Polish buffalo. He actually recorded more than 200,000 kills in his log. Keep in mind that royal hunting was a kind of massacre game with his aides sweeping doomed animals into the archduke's eager sights. More than 4,000 trophies decorate the walls and halls of his castle.
Franz Ferdinand did more than his share of shooting. But in 1914, he himself was shot, with his beloved wife Sofia, in Sarajevo. His assassination sparked World War I, which ultimately ended the rule of the Hapsburg family -- whose crown he had waited so long to inherit.
Another compelling sight near Prague is Terezin, a town built in the 1780s with state-of-the-art walls designed to keep out German enemies. In 1941, the Nazis evicted its 7,000 inhabitants and packed in 60,000 Jews, creating the Terezin Concentration Camp. The town's historic walls, originally meant to keep Germans out, were now used by Germans to keep the Jews in. But this was a concentration camp with a devious twist.
Don't Miss
In Depth: Rick Steves' Europe
This was the Nazis' model "Jewish town" -- in reality a concentration camp dolled up for propaganda purposes. Here in what the Nazis called a "self-governing Jewish resettlement area," Jewish culture seemed to thrive, as "citizens" put on plays and concerts, published a magazine, and raised their families in ways that impressed Red Cross inspectors.
The Germans wanted the Jews to accept this new reality -- harsh, but at least life would go on. Children made dolls of their friends "in transport" -- as if relocating was just the start of the next stage of their lives. They drew carefree memories of life before incarceration and made scrapbooks about life in the camp. The museum comes with a recreated barracks with actual belongings of Terezin inmates.
Sinks were installed -- looking good for Red Cross inspectors from the outside world -- but never actually plumbed with water. Tolerable as this sham Jewish town seemed, virtually all of Terezin's Jews ultimately ended up dying either here or at the extermination camps farther east. As you explore the camp, ponder the message of all such memorials: Forgive, but never forget.
About 40 miles east of Prague lies the refreshingly authentic town of Kutna Hora. The town sits upon what was Europe's largest silver mine. Today, visitors play miner and climb down 200 yards below the town to explore the medieval mine shafts that honeycombed the ground under Kutna Hora. Centuries of mining in these narrow wet shafts made the ground under Kutna Hora resemble a giant anthill. The mine was so productive that the standard coinage of much of Europe was minted right here.
Kutna Hora's famous Bone Church looks like a normal church on the outside, but inside, the bones of 40,000 people decorate the walls and ceilings. Fourteenth-century plagues and 15th-century wars provided all the raw material necessary for the creepily creative monks who made these designs.
Those who first placed these bones 400 years ago wanted viewers to remember that the earthly church is a community of both the living and the dead, a countless multitude that will one day stand before God. Later bone-stackers were more interested in design than theology ... as evidenced by the chandelier that includes every bone in the human body.
Whether you're in the mood for castles, sobering WWII history, or a quirky church, Prague's day trips offer something for everyone. You can explore and even get back to the city in time for an evening concert.
Air France plane did not break up in flight - report
PARIS, France -- The Air France plane that crashed a month ago off the coast of Brazil "did not break up or become destroyed in flight," but bellyflopped intact into the Atlantic Ocean, the French air investigation agency announced Thursday.
Relatives and friends of an Air France steward follow his coffin during his funeral last week in Rio de Janeiro.
"The plane went straight down, almost vertically... towards the surface of the water, very very fast," air accident investigator Alain Bouillard said.
Based on visual study of the physical remains of the Airbus A330 that have been recovered, "we were able to see that the plane hit the surface of the water flat. Therefore everything was pushed upwards -- everything was pushed from the bottom to the top" of the plane, he said.
The 228 people killed in the crash "had no time to prepare," he said. Watch more about Flight 447's descent »
But Bouillard said he did not have autopsy results from the bodies recovered, and did not know why no one lived through the crash.
"I don't know why nobody survived," he said. "I don't know the intensity of the impact. Perhaps we will find out from the autopsies. Perhaps we will never know."
Bouillard said it was still unclear what caused the crash, the deadliest in Air France's 75-year history.
"Today we are very far from establishing the causes of the accident," he said.
But there is no reason to ground Airbus A330 airplanes, he said. "There is no problem with flying these airplanes."
Pressed by a reporter on why he was not ordering the model to stop flying, he said the fleet has flown millions of miles and there are currently 660 of them flying. "Statistically, this would answer the question," he said.
Air France 447 was unable to fly on autopilot at the time of the crash, the investigator said. That was because the autopilot was not receiving speed, wind or direction information, he said.
"These tell us that the plane has to be, in this case, directed by the pilot," he said. He did not immediately say if the pilots were in control of Air France 447.
The last contact with the plane was at 2:10 a.m. local time on June 1.
"Right after that 24 automated messages came through" about the status of the plane, he said. Those messages were what enabled investigators to determine that the autopilot would not have had enough information to fly the plane, he said.
No air-traffic controllers seem to have been monitoring the flight when it went down, investigations have found. It would normally have been "handed over" from controllers in South America to others in Africa while flying over the Atlantic, but that did not happen, Bouillard said.
"We want to know why there was no concern in Dakar (in Senegal, west Africa) when this plane was not handed over," he said.
The plane was flying through severe storms when it went down.
Three other flights on similar routes changed course within an hour after Air France 447 flew into the bad weather.
A Spanish, French and German flight all experienced turbulence in the same region and diverted as much as 100 km (62 miles) off course to avoid bad weather, Bouillard said. All three flights had problems communicating with air traffic control.
Investigators will continue searching for the flight data recorder and the cockpit voice recorder -- commonly known as "black boxes" -- until July 10, said Bouillard, of the French air accident investigation agency known as the BEA.
"They normally give a signal for 30 days. We will keep listening another 10 days," he said.
Air France said Thursday it was of "capital importance" to find the recorders, "which would enable the investigators to analyze the causes of the accident, whatever these may be. No effort must be spared in achieving this end."
Bouillard said investigators would continue to search even after the beacons on the recorders stop signaling, in what he called a "second phase" of the search.
"If we could find a part of the plane that we know was near the black boxes, that will give us a clue about where to search," he said.
The mountainous ocean floor in the search area ranges from 3,280 to 15,091 feet, BEA officials have said in the past, making the search for the recorders -- and the rest of the plane's debris -- difficult.
"It is as if it fell in the Andes," Olivier Ferrante, chief of the BEA search mission said last month.
French submarines and sensitive U.S. military listening devices are being used in the search.
Flight 447 went down in stormy weather while flying from Rio de Janeiro, Brazil, to Charles de Gaulle Airport in Paris.
Brazil called off the search for bodies on June 27, having found 51 of the 228 people who died when the plunged into the sea, according to the military.
Investigators have also found more than 600 parts and structural components of the plane, along with luggage, Bouillard said.
They have not found any clothing, he said, but was unable to say why.
PARIS, France -- The Air France plane that crashed a month ago off the coast of Brazil "did not break up or become destroyed in flight," but bellyflopped intact into the Atlantic Ocean, the French air investigation agency announced Thursday.
Relatives and friends of an Air France steward follow his coffin during his funeral last week in Rio de Janeiro.
"The plane went straight down, almost vertically... towards the surface of the water, very very fast," air accident investigator Alain Bouillard said.
Based on visual study of the physical remains of the Airbus A330 that have been recovered, "we were able to see that the plane hit the surface of the water flat. Therefore everything was pushed upwards -- everything was pushed from the bottom to the top" of the plane, he said.
The 228 people killed in the crash "had no time to prepare," he said. Watch more about Flight 447's descent »
But Bouillard said he did not have autopsy results from the bodies recovered, and did not know why no one lived through the crash.
"I don't know why nobody survived," he said. "I don't know the intensity of the impact. Perhaps we will find out from the autopsies. Perhaps we will never know."
Bouillard said it was still unclear what caused the crash, the deadliest in Air France's 75-year history.
"Today we are very far from establishing the causes of the accident," he said.
But there is no reason to ground Airbus A330 airplanes, he said. "There is no problem with flying these airplanes."
Pressed by a reporter on why he was not ordering the model to stop flying, he said the fleet has flown millions of miles and there are currently 660 of them flying. "Statistically, this would answer the question," he said.
Air France 447 was unable to fly on autopilot at the time of the crash, the investigator said. That was because the autopilot was not receiving speed, wind or direction information, he said.
"These tell us that the plane has to be, in this case, directed by the pilot," he said. He did not immediately say if the pilots were in control of Air France 447.
The last contact with the plane was at 2:10 a.m. local time on June 1.
"Right after that 24 automated messages came through" about the status of the plane, he said. Those messages were what enabled investigators to determine that the autopilot would not have had enough information to fly the plane, he said.
No air-traffic controllers seem to have been monitoring the flight when it went down, investigations have found. It would normally have been "handed over" from controllers in South America to others in Africa while flying over the Atlantic, but that did not happen, Bouillard said.
"We want to know why there was no concern in Dakar (in Senegal, west Africa) when this plane was not handed over," he said.
The plane was flying through severe storms when it went down.
Three other flights on similar routes changed course within an hour after Air France 447 flew into the bad weather.
A Spanish, French and German flight all experienced turbulence in the same region and diverted as much as 100 km (62 miles) off course to avoid bad weather, Bouillard said. All three flights had problems communicating with air traffic control.
Investigators will continue searching for the flight data recorder and the cockpit voice recorder -- commonly known as "black boxes" -- until July 10, said Bouillard, of the French air accident investigation agency known as the BEA.
"They normally give a signal for 30 days. We will keep listening another 10 days," he said.
Air France said Thursday it was of "capital importance" to find the recorders, "which would enable the investigators to analyze the causes of the accident, whatever these may be. No effort must be spared in achieving this end."
Bouillard said investigators would continue to search even after the beacons on the recorders stop signaling, in what he called a "second phase" of the search.
"If we could find a part of the plane that we know was near the black boxes, that will give us a clue about where to search," he said.
The mountainous ocean floor in the search area ranges from 3,280 to 15,091 feet, BEA officials have said in the past, making the search for the recorders -- and the rest of the plane's debris -- difficult.
"It is as if it fell in the Andes," Olivier Ferrante, chief of the BEA search mission said last month.
French submarines and sensitive U.S. military listening devices are being used in the search.
Flight 447 went down in stormy weather while flying from Rio de Janeiro, Brazil, to Charles de Gaulle Airport in Paris.
Brazil called off the search for bodies on June 27, having found 51 of the 228 people who died when the plunged into the sea, according to the military.
Investigators have also found more than 600 parts and structural components of the plane, along with luggage, Bouillard said.
They have not found any clothing, he said, but was unable to say why.
The Gaza Strip's Diamond in the Rough
The Al Deira, http://www.aldeira.ps/, is a splendid, breezy hotel on the Mediterranean that can only be reached if you are an aid worker, a journalist or, if you choose to enter the Gaza Strip, by a smuggler's tunnel from Egypt. I don't recommend the tunnel route; these snake holes deep in the sand tend to cave in and are frequently bombed by Israeli fighter jets. (See the best new travel products, gadgets and trends.)
The Al Deira would be a classy hotel anywhere. But part of its allure is its sheer contrast with the rest of Gaza, ravaged by three years of economic blockade, a fratricidal war among Palestinians and, seven months ago, a full-bore Israeli air, land and sea assault that lasted 22 days. After traversing Gaza's blasted urban landscape, you arrive at the hotel like a desert wanderer plunging his head into oasis waters. With its cool shadows and an inner courtyard trapping pools of light, the Al Deira has an Ottoman elegance. You're led to your room along corridors where a wisp of sandalwood incense plays in the light sea breeze. The 22 rooms are a revelation: high domed ceilings with views of the beach below, where Gazan kids play in the surf. It's worth remembering that the little soaps and shampoos, which we take for granted in most hotel rooms, have to be smuggled in from Egypt since, bafflingly, they are on Israel's long list of banned items. So is window glass, which is more awkward to carry through a tunnel, so don't be surprised if you open the curtains and find the window is starred by a bullet hole. (Watch TIME's video "Protesting Gaza, Carefully, in the West Bank.")
The TV images coming out of Gaza usually show masked Islamic militants waving Kalashnikovs. But another side of Gaza reveals itself at Al Deira: its peace-loving middle classes. Every afternoon, well-dressed families descend on the hotel's seaside café. Little kids swarm over the slide and jungle gym in the corner while their parents relax with a fresh strawberry shake and a puff from a water pipe. At twilight, a wistful silence passes through the cafégoers as their eyes follow the sun on its westward passage to lands that they, as Palestinians trapped inside Gaza, can never hope to visit until Israel lifts its blockade.
The Al Deira opened in 2000 during "optimistic times," says its manager, Samir Skaik. They were short-lived. Soon after, the intifadeh, or Palestinian uprising, started, and there has been fighting and mayhem ever since. The same ingenuity that Gazans show during these hard times — running their cars on used vegetable oil when gas is cut off, or rebuilding houses out of mud bricks because Israel has yet to allow in construction materials after its last offensive — applies to running the Al Deira. "Of course we thought of shutting down. But we have loyalty to Gaza and to our employees," says Skaik, who tells his staff: "Leave your problems at the door. Come in with a smile. The guests expect it." But aside from journalists and a few diplomats, guests are rare. For nine years, the Al Deira staff have been waiting for the arrival of peace, and tourists. Some day, says Skaik, confidently, "tourists will come to Gaza." And the intrepid travelers will find a hotel that blends the best of Arab hospitality and style.
'Miracle' plane crash survivor back in France
PARIS, France -- The 13-year-old girl who survived for hours in the Indian Ocean clinging to the debris of a downed plane arrived home in France on Thursday where she was reunited with her father.
Bahia Bakari holds her father's hand as she lies on a stretcher in a plane after landing in France.
Bahia Basari, who lives in Marseille, escaped with cuts to her face and a fractured collar-bone as the Yemenia Airways Airbus A310 tried to land in the Comoros Islands on Tuesday at the end of a four-stage flight from France.
She is the only known survivor from the crash, which killed her mother.
Shortly after her arrival in Paris, Basari was taken to a hospital with her father where she will stay for a couple of days, said Alain Joyandet, French undersecretary for cooperation.
"She really needs a few days' rest. She will be recovering with her family," Joyandet told reporters in Paris. "She just learned that she has lost her mother."
Joyandet met the girl in a Comoros hospital Wednesday and heard how she was pulled from the sea.
A French reporter accompanied Basari from Comoros to Paris on Thursday, videotaping the teenager lying on a bed with a medical attendant nearby.
The France 2 reporter asked the visibly tired girl some questions on camera. She had several wounds on her face, including a swollen left eye, but said she was feeling "good."
Basari gave short responses to most of the questions, only whispering or just shaking her head.
The flight -- which was carrying 142 passengers and 11 crew members -- had originated in Yemen's capital, Sanaa.
The Airbus 310 plane tried to land at the airport in Comoros' capital, Moroni, then made a U-turn before it crashed, Comoros Vice President Idi Nadhoim said.
The Comoros Islands are between the east African country of Tanzania and the island nation of Madagascar.
The teen's father, Kassim Bakari, told a French radio network that his wife and daughter were flying to Comoros to visit relatives.
"When I had her on the phone, I asked her what happened and she said, 'Daddy, I don't know what happened, but the plane fell into the water and I found myself in the water ... surrounded by darkness. I could not see anyone,'" Bakari told France Info.
The head of the rescue team in the Comoros told French radio RTL that the teenager survived astonishing odds to survive.
"It is truly, truly, miraculous," said Ibrahim Abdoulazeb. "The young girl can barely swim."
Another rescuer told France's Europe 1 radio the girl was spotted in the rough sea among bodies and plane debris in darkness about two hours after the crash.
Bakari said he did not believe he would see his wife or daughter again after learning of the crash. Watch more about Bahia's escape »
"She is a very, very shy girl. I would never have thought she would have survived like this," he said. "I can't say that it's a miracle, I can say that it is God's will."
He described how his daughter was ejected from the plane into the Indian Ocean.
"She didn't feel a thing. She found herself in water," he told RTL radio. "She could hear people talking, but in the middle of the night, she couldn't see a thing. She managed to hold on to a piece of something."
Passengers on the flight included 66 French citizens, 54 Comorians, one Palestinian and one Canadian, according to Yemeni and French officials. The crew was made up of six Yemenis, two Moroccans, one Ethiopian, one Filipino and one Indonesian. Read how people survive air crashes
Some of the victims' relatives arrived in the Comoros on Thursday aboard Yemenia's first flight since the crash, as the French government was criticized for failing to charter an aircraft for them.
French and U.S. divers are helping to search for debris and bodies. The French military has detected a rescue beacon, but rescue workers say the wreckage is difficult to reach in deep waters.
The plane's data recorders have yet to be found, said Capt. Mohammed Abdel Rahman Abdel Qadir, a spokesman for Yemen's civil aviation department. A number of potential contributing factors were beginning to appear, he added.
"The weather conditions were indeed very troubling and the winds were very strong, reaching 61 kilometers per hour (38 mph)," he said. "The other thing was that the sea was very rough when the plane approached landing at Moroni airport."
A French official said the nation had banned the plane after it failed an aviation inspection in 2007.
"Since this check-up, we have not seen the plane reappearing in France," said Dominique Bussereau, the transport minister.
Yemenia Airlines was not on the European Union's list of banned airlines, he added.
PARIS, France -- The 13-year-old girl who survived for hours in the Indian Ocean clinging to the debris of a downed plane arrived home in France on Thursday where she was reunited with her father.
Bahia Bakari holds her father's hand as she lies on a stretcher in a plane after landing in France.
Bahia Basari, who lives in Marseille, escaped with cuts to her face and a fractured collar-bone as the Yemenia Airways Airbus A310 tried to land in the Comoros Islands on Tuesday at the end of a four-stage flight from France.
She is the only known survivor from the crash, which killed her mother.
Shortly after her arrival in Paris, Basari was taken to a hospital with her father where she will stay for a couple of days, said Alain Joyandet, French undersecretary for cooperation.
"She really needs a few days' rest. She will be recovering with her family," Joyandet told reporters in Paris. "She just learned that she has lost her mother."
Joyandet met the girl in a Comoros hospital Wednesday and heard how she was pulled from the sea.
A French reporter accompanied Basari from Comoros to Paris on Thursday, videotaping the teenager lying on a bed with a medical attendant nearby.
The France 2 reporter asked the visibly tired girl some questions on camera. She had several wounds on her face, including a swollen left eye, but said she was feeling "good."
Basari gave short responses to most of the questions, only whispering or just shaking her head.
The flight -- which was carrying 142 passengers and 11 crew members -- had originated in Yemen's capital, Sanaa.
The Airbus 310 plane tried to land at the airport in Comoros' capital, Moroni, then made a U-turn before it crashed, Comoros Vice President Idi Nadhoim said.
The Comoros Islands are between the east African country of Tanzania and the island nation of Madagascar.
The teen's father, Kassim Bakari, told a French radio network that his wife and daughter were flying to Comoros to visit relatives.
"When I had her on the phone, I asked her what happened and she said, 'Daddy, I don't know what happened, but the plane fell into the water and I found myself in the water ... surrounded by darkness. I could not see anyone,'" Bakari told France Info.
The head of the rescue team in the Comoros told French radio RTL that the teenager survived astonishing odds to survive.
"It is truly, truly, miraculous," said Ibrahim Abdoulazeb. "The young girl can barely swim."
Another rescuer told France's Europe 1 radio the girl was spotted in the rough sea among bodies and plane debris in darkness about two hours after the crash.
Bakari said he did not believe he would see his wife or daughter again after learning of the crash. Watch more about Bahia's escape »
"She is a very, very shy girl. I would never have thought she would have survived like this," he said. "I can't say that it's a miracle, I can say that it is God's will."
He described how his daughter was ejected from the plane into the Indian Ocean.
"She didn't feel a thing. She found herself in water," he told RTL radio. "She could hear people talking, but in the middle of the night, she couldn't see a thing. She managed to hold on to a piece of something."
Passengers on the flight included 66 French citizens, 54 Comorians, one Palestinian and one Canadian, according to Yemeni and French officials. The crew was made up of six Yemenis, two Moroccans, one Ethiopian, one Filipino and one Indonesian. Read how people survive air crashes
Some of the victims' relatives arrived in the Comoros on Thursday aboard Yemenia's first flight since the crash, as the French government was criticized for failing to charter an aircraft for them.
French and U.S. divers are helping to search for debris and bodies. The French military has detected a rescue beacon, but rescue workers say the wreckage is difficult to reach in deep waters.
The plane's data recorders have yet to be found, said Capt. Mohammed Abdel Rahman Abdel Qadir, a spokesman for Yemen's civil aviation department. A number of potential contributing factors were beginning to appear, he added.
"The weather conditions were indeed very troubling and the winds were very strong, reaching 61 kilometers per hour (38 mph)," he said. "The other thing was that the sea was very rough when the plane approached landing at Moroni airport."
A French official said the nation had banned the plane after it failed an aviation inspection in 2007.
"Since this check-up, we have not seen the plane reappearing in France," said Dominique Bussereau, the transport minister.
Yemenia Airlines was not on the European Union's list of banned airlines, he added.
Survivor still haunted by 1971 air crash
MUNICH, Germany -- Juliane Koepcke is not someone you'd expect to attract attention. Plainly dressed and wearing prescription glasses, Koepcke sits behind her desk at the Zoological Center in Munich, Germany, where she's a librarian.
Juliane Koepcke fell more than 3kms after the plane in which she was traveling broke up in midair.
Yet this unassuming middle aged woman has one of the most exciting and unbelievable stories of tragedy and survival to tell.
It was Christmas Eve, 1971, when Koepcke, then aged 17, and her mother boarded a Lockheed Electra turboprop for a flight from Lima, Peru, to Pucallpa in the Amazonian rainforest. Her parents, both famous zoologists, ran a research station in the jungle studying wildlife.
The airline, LANSA, had already lost two aircraft in previous crashes. "We knew the airline had a bad reputation," Koepcke told CNN, "but we desperately wanted to be with my father for Christmas, so we figured it would be alright."
The flight was supposed to last for less than an hour and for the first 25 minutes everything was fine, Koepcke recalled.
"Then we flew into heavy clouds and the plane started shaking. My mother was very nervous. Then to the right we saw a bright flash and the plane went into a nose dive. My mother said, 'This is it!'"
An accident investigation later found that one of the fuel tanks of the Lockheed Electra had been hit by a bolt of lightning which had torn the right wing off.
"We were headed straight down. Christmas presents were flying around the cabin and I could hear people screaming." Watch Koepcke tell her dramatic survivor's story »
As the plane broke into pieces in midair, Koepcke was thrust out into the open air:
"Suddenly there was this amazing silence. The plane was gone. I must have been unconscious and then came to in midair. I was flying, spinning through the air and I could see the forest spinning beneath me."
Then Koepcke lost consciousness again. She fell more than three kilometers (two miles) into the jungle canopy but miraculously survived with only minor injuries. Ninety-one other people aboard Flight 508 died.
Koepcke says she is not a spiritual person and has tried to find logical explanations for why she survived.
"Maybe it was the fact that I was still attached to a whole row of seats," she says. "It was rotating much like the helicopter and that might have slowed the fall. Also, the place I landed had very thick foliage and that might have lessened the impact."
In any case she survived with only minor injuries. Her collarbone was broken, her right eye swollen shut, she was suffering concussion and had large gashes on her arms and legs.
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'Miracle' plane crash survivor back in France
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"I didn't wake up until nine o'clock the next morning. I know this because my watch was still working. So I must have been unconscious the whole afternoon and the night. When I came to I was alone, just me ... and my row of seats."
Her ordeal was far from over. Rescue planes and search crews were unable to locate the crash site and Koepcke was stranded in the jungle alone. But she had spent years on the research station with her parents and her father had taught her how to survive in the rainforest -- she knew how to cope in that environment.
""He said if you find a creek, follow it because that will lead to a stream and a stream will lead to a bigger river and that's where you'll find help."
The day after the crash she found a creek and started to wade down stream, but it was tough going. The only food she had was some candy she had found at the crash site and her wounds were quickly infested with parasites.
"I had a cut on my arm and after a few days I could feel there was something in it. I took a look and a fly had laid her eggs in the hole. It was full of maggots. I was afraid I would lose my arm. Later, after I was rescued it was treated and more than 50 maggots were found inside. I still wonder how so many maggots could have fitted into that little hole, it was no bigger than a one euro coin."
As she travelled downstream, Koepcke discovered more wreckage from the plane -- and found some of the crash victims.
"I found another row of seats with three dead women still strapped in. They had landed head-first and the impact must have been so hard that they were buried almost two feet into the ground.
"I was horrified -- I didn't want to touch them but I wanted to make sure that my mother wasn't one of them. So I took a stick and knocked a shoe off one of the bodies. The toe nails had nail polish on them and I knew it could not have been my mother because she never used nail polish."
Juliane continued through the rainforest, wading through jungle streams infested with crocodiles, piranhas and devil rays.
"Sometimes I would see a crocodile on the bank and it would start into the water towards me, but I was not afraid. I knew crocodiles don't tend to attack humans."
After 10 days, starved and exhausted, Koepke finally came upon a small boat and a hut on the river. She stayed there, hoping to be rescued. The next day a group of Peruvian lumberjacks found her and brought her to the next town.
She became known as the miracle girl and was hounded by Peruvian media, receiving hundreds of letters from people she had never met before.
"It was so strange," she says, smiling. "Some of the letters were simply addressed 'Juliane -- Peru' but they still all found their way to me."
The events of 1971 still haunt Koepcke and she says the memories are especially clear when she is confronted with airline disasters like last month's Air France crash off the coast of Brazil.
"It just horrifies me. I only hope it all went quickly for those on board."
MUNICH, Germany -- Juliane Koepcke is not someone you'd expect to attract attention. Plainly dressed and wearing prescription glasses, Koepcke sits behind her desk at the Zoological Center in Munich, Germany, where she's a librarian.
Juliane Koepcke fell more than 3kms after the plane in which she was traveling broke up in midair.
Yet this unassuming middle aged woman has one of the most exciting and unbelievable stories of tragedy and survival to tell.
It was Christmas Eve, 1971, when Koepcke, then aged 17, and her mother boarded a Lockheed Electra turboprop for a flight from Lima, Peru, to Pucallpa in the Amazonian rainforest. Her parents, both famous zoologists, ran a research station in the jungle studying wildlife.
The airline, LANSA, had already lost two aircraft in previous crashes. "We knew the airline had a bad reputation," Koepcke told CNN, "but we desperately wanted to be with my father for Christmas, so we figured it would be alright."
The flight was supposed to last for less than an hour and for the first 25 minutes everything was fine, Koepcke recalled.
"Then we flew into heavy clouds and the plane started shaking. My mother was very nervous. Then to the right we saw a bright flash and the plane went into a nose dive. My mother said, 'This is it!'"
An accident investigation later found that one of the fuel tanks of the Lockheed Electra had been hit by a bolt of lightning which had torn the right wing off.
"We were headed straight down. Christmas presents were flying around the cabin and I could hear people screaming." Watch Koepcke tell her dramatic survivor's story »
As the plane broke into pieces in midair, Koepcke was thrust out into the open air:
"Suddenly there was this amazing silence. The plane was gone. I must have been unconscious and then came to in midair. I was flying, spinning through the air and I could see the forest spinning beneath me."
Then Koepcke lost consciousness again. She fell more than three kilometers (two miles) into the jungle canopy but miraculously survived with only minor injuries. Ninety-one other people aboard Flight 508 died.
Koepcke says she is not a spiritual person and has tried to find logical explanations for why she survived.
"Maybe it was the fact that I was still attached to a whole row of seats," she says. "It was rotating much like the helicopter and that might have slowed the fall. Also, the place I landed had very thick foliage and that might have lessened the impact."
In any case she survived with only minor injuries. Her collarbone was broken, her right eye swollen shut, she was suffering concussion and had large gashes on her arms and legs.
Don't Miss
Investigators: Air France plane crashed intact
'Miracle' plane crash survivor back in France
How do people survive airline crashes?
"I didn't wake up until nine o'clock the next morning. I know this because my watch was still working. So I must have been unconscious the whole afternoon and the night. When I came to I was alone, just me ... and my row of seats."
Her ordeal was far from over. Rescue planes and search crews were unable to locate the crash site and Koepcke was stranded in the jungle alone. But she had spent years on the research station with her parents and her father had taught her how to survive in the rainforest -- she knew how to cope in that environment.
""He said if you find a creek, follow it because that will lead to a stream and a stream will lead to a bigger river and that's where you'll find help."
The day after the crash she found a creek and started to wade down stream, but it was tough going. The only food she had was some candy she had found at the crash site and her wounds were quickly infested with parasites.
"I had a cut on my arm and after a few days I could feel there was something in it. I took a look and a fly had laid her eggs in the hole. It was full of maggots. I was afraid I would lose my arm. Later, after I was rescued it was treated and more than 50 maggots were found inside. I still wonder how so many maggots could have fitted into that little hole, it was no bigger than a one euro coin."
As she travelled downstream, Koepcke discovered more wreckage from the plane -- and found some of the crash victims.
"I found another row of seats with three dead women still strapped in. They had landed head-first and the impact must have been so hard that they were buried almost two feet into the ground.
"I was horrified -- I didn't want to touch them but I wanted to make sure that my mother wasn't one of them. So I took a stick and knocked a shoe off one of the bodies. The toe nails had nail polish on them and I knew it could not have been my mother because she never used nail polish."
Juliane continued through the rainforest, wading through jungle streams infested with crocodiles, piranhas and devil rays.
"Sometimes I would see a crocodile on the bank and it would start into the water towards me, but I was not afraid. I knew crocodiles don't tend to attack humans."
After 10 days, starved and exhausted, Koepke finally came upon a small boat and a hut on the river. She stayed there, hoping to be rescued. The next day a group of Peruvian lumberjacks found her and brought her to the next town.
She became known as the miracle girl and was hounded by Peruvian media, receiving hundreds of letters from people she had never met before.
"It was so strange," she says, smiling. "Some of the letters were simply addressed 'Juliane -- Peru' but they still all found their way to me."
The events of 1971 still haunt Koepcke and she says the memories are especially clear when she is confronted with airline disasters like last month's Air France crash off the coast of Brazil.
"It just horrifies me. I only hope it all went quickly for those on board."
Love hotel business zooms despite downturn
TOKYO, Japan -- Even in the midst of Japan's deepest economic recession since World War II, the country's love hotel industry is thriving.
The Style A hotel in Tokyo offers amenities.
"I'd hate to use the term "recession-proof," but it's certainly proven very resilient over the last six to nine months," said Steve Mansfield, CEO of New Perspectives, which operates six love, or "leisure," hotels in Japan.
One of them, the Bonita Hotel in Isawa, boasts a 257 percent occupancy rate. Rooms can be rented for three to 24 hours.
Mansfield's company estimates the industry in Japan pulls in $40 billion a year in revenue.
"It's a natural human desire. Even these days, on the weekend, every love hotel is full of people -- it's hard to get in. You can never stop sexual desire," said a woman with her boyfriend in Tokyo, who laughed in embarrassment when asked for her name.
Love hotels fill a need for privacy in a country where high population density often means couples have little time alone.
Rooms offer a broad assortment of features, including karaoke machines, PlayStation game consoles, DVD players, a variety of cosmetics, customized condoms and indoor-outdoor Jacuzzis. Watch Morgan Neill's report from inside a love hotel »
Though required by law to have a front desk, most can be rented and entered without talking to a clerk.
The days of Japanese being ashamed to enter love hotels are coming to an end, though, Mansfield said.
"Seventy-five percent of our guests are members of our points program," he said. "They carry our points cards, they collect points and they receive gifts. That's something people are very comfortable with, and I think that reflects the customers that we attract."
Takashi Yamamoto, who designs love hotels in Tokyo, agreed.
"The bad image that love hotels had has faded over time. Also, customers started to raise their voices and became more selective about choosing hotels. In response, management has improved."
The flashiest love hotels are found in Osaka, including a Hello Kitty-themed hotel and one with a room featuring a merry-go-round.
Tokyo hotels tend to be tamer, focused on winning customers with amenities. The Style A Hotel, for example, offers a suite for $190 that includes a full-size Jacuzzi and a private sauna.
Though young couples make up the majority of customers, they are not the only ones. One man, who declined to be named, said: "I go to love hotels when I'm drunk and don't feel like going home."
Whatever the reasons, the hotels have been doing well enough that Mansfield recently went to London, seeking investors to expand.
"The industry has 25,000 hotels, and through our research we've worked out that 90 percent of owners have five or fewer hotels," he said.
That fragmentation is a structural inefficiency in the market, he said, one he would like to help correct.
TOKYO, Japan -- Even in the midst of Japan's deepest economic recession since World War II, the country's love hotel industry is thriving.
The Style A hotel in Tokyo offers amenities.
"I'd hate to use the term "recession-proof," but it's certainly proven very resilient over the last six to nine months," said Steve Mansfield, CEO of New Perspectives, which operates six love, or "leisure," hotels in Japan.
One of them, the Bonita Hotel in Isawa, boasts a 257 percent occupancy rate. Rooms can be rented for three to 24 hours.
Mansfield's company estimates the industry in Japan pulls in $40 billion a year in revenue.
"It's a natural human desire. Even these days, on the weekend, every love hotel is full of people -- it's hard to get in. You can never stop sexual desire," said a woman with her boyfriend in Tokyo, who laughed in embarrassment when asked for her name.
Love hotels fill a need for privacy in a country where high population density often means couples have little time alone.
Rooms offer a broad assortment of features, including karaoke machines, PlayStation game consoles, DVD players, a variety of cosmetics, customized condoms and indoor-outdoor Jacuzzis. Watch Morgan Neill's report from inside a love hotel »
Though required by law to have a front desk, most can be rented and entered without talking to a clerk.
The days of Japanese being ashamed to enter love hotels are coming to an end, though, Mansfield said.
"Seventy-five percent of our guests are members of our points program," he said. "They carry our points cards, they collect points and they receive gifts. That's something people are very comfortable with, and I think that reflects the customers that we attract."
Takashi Yamamoto, who designs love hotels in Tokyo, agreed.
"The bad image that love hotels had has faded over time. Also, customers started to raise their voices and became more selective about choosing hotels. In response, management has improved."
The flashiest love hotels are found in Osaka, including a Hello Kitty-themed hotel and one with a room featuring a merry-go-round.
Tokyo hotels tend to be tamer, focused on winning customers with amenities. The Style A Hotel, for example, offers a suite for $190 that includes a full-size Jacuzzi and a private sauna.
Though young couples make up the majority of customers, they are not the only ones. One man, who declined to be named, said: "I go to love hotels when I'm drunk and don't feel like going home."
Whatever the reasons, the hotels have been doing well enough that Mansfield recently went to London, seeking investors to expand.
"The industry has 25,000 hotels, and through our research we've worked out that 90 percent of owners have five or fewer hotels," he said.
That fragmentation is a structural inefficiency in the market, he said, one he would like to help correct.
Fake Tamiflu 'out-spams Viagra on Web'
The number of Internet scammers offering fake anti-swine flu drug Tamiflu has surpassed those selling counterfeit Viagra, a UK body said Friday.
Anti swine-flu drug Tamiflu is now the most spammed drug on the Internet, experts say
Since the H1N1 virus, also known as swine flu, was declared a global pandemic last month, there has been an increase in the number of Web sites and junk emails offering Tamiflu for sale.
More than 70,000 people have now been infected with the virus, according to the World Health Organization. The increase in the number of cases has, in turn, led to a surge in the number of cyber criminals seeking to cash in on the pandemic.
David Pruce, Director of Policy for the UK's Royal Pharmaceutical Society (RPS) told CNN: "From looking at sites that used to sell Viagra and the amount of spam emails we're having reported to us, we think that Tamiflu is now the most spammed drug on the Internet.
"Since the outbreak, every Web site that used to sell Viagra is now selling Tamiflu. We are pretty sure that the same people are making the Tamiflu as are making the Viagra."
The RPS research suggests more than two million people regularly buy medicine over the Internet. However, the majority of those are from registered online pharmacies.
Pruce cautioned against buying Tamiflu over the Internet, saying, "we know that half the Viagra on the Internet is fake and half the Tamiflu that's around will probably be fake as well.
"The fake drugs could have anything from sugar to another drug that's similar, or often it's a lower dose of the drug, or even rat poison."
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His views were echoed by the UK government's chief medical officer who warned the public against panic-buying anti-swine flu drugs online.
Liam Donaldson said in an interview with breakfast program GMTV that Britain had a massive stockpile of Tamiflu and would be one of the first countries to have access to a vaccine, with the first supplies arriving at the end of next month.
The warning comes as it emerged Friday that a 19-year-old man has become the first person to die in London after contracting swine flu.
The teenager, who was suffering from other undisclosed serious health problems, tested positive for the virus following his death on Wednesday, according to a statement from the country's National Health Service.
He is the fourth person in the UK to die from the virus.
Britain's Health Secretary Andy Burnham Thursday issued a warning in the House of Commons that 40 Britons a day could die from the illness.
He also said the government's emergency response had moved from containing the swine flu outbreak into the "treatment phase."
The change in the government's swine flu strategy came as the World Health Organization warned that the spread of swine flu was now "unstoppable," with a total of 112 countries reporting nearly 77,201 infected people and 332 deaths since April.
Dr Margaret Chan, the WHO director general, told an international conference on swine flu in Mexico: "With well over 100 countries reporting cases, once a fully fit pandemic virus emerges its further international spread is unstoppable."
She added that while most deaths had so far occurred in people with serious underlying medical conditions, there were a few exceptions that caused concern.
"For reasons that are poorly understood, some deaths are occurring in perfectly healthy young people," she said.
The number of Internet scammers offering fake anti-swine flu drug Tamiflu has surpassed those selling counterfeit Viagra, a UK body said Friday.
Anti swine-flu drug Tamiflu is now the most spammed drug on the Internet, experts say
Since the H1N1 virus, also known as swine flu, was declared a global pandemic last month, there has been an increase in the number of Web sites and junk emails offering Tamiflu for sale.
More than 70,000 people have now been infected with the virus, according to the World Health Organization. The increase in the number of cases has, in turn, led to a surge in the number of cyber criminals seeking to cash in on the pandemic.
David Pruce, Director of Policy for the UK's Royal Pharmaceutical Society (RPS) told CNN: "From looking at sites that used to sell Viagra and the amount of spam emails we're having reported to us, we think that Tamiflu is now the most spammed drug on the Internet.
"Since the outbreak, every Web site that used to sell Viagra is now selling Tamiflu. We are pretty sure that the same people are making the Tamiflu as are making the Viagra."
The RPS research suggests more than two million people regularly buy medicine over the Internet. However, the majority of those are from registered online pharmacies.
Pruce cautioned against buying Tamiflu over the Internet, saying, "we know that half the Viagra on the Internet is fake and half the Tamiflu that's around will probably be fake as well.
"The fake drugs could have anything from sugar to another drug that's similar, or often it's a lower dose of the drug, or even rat poison."
Vital Signs
Each month CNN's Dr. Sanjay Gupta brings viewers health stories from around the world.
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His views were echoed by the UK government's chief medical officer who warned the public against panic-buying anti-swine flu drugs online.
Liam Donaldson said in an interview with breakfast program GMTV that Britain had a massive stockpile of Tamiflu and would be one of the first countries to have access to a vaccine, with the first supplies arriving at the end of next month.
The warning comes as it emerged Friday that a 19-year-old man has become the first person to die in London after contracting swine flu.
The teenager, who was suffering from other undisclosed serious health problems, tested positive for the virus following his death on Wednesday, according to a statement from the country's National Health Service.
He is the fourth person in the UK to die from the virus.
Britain's Health Secretary Andy Burnham Thursday issued a warning in the House of Commons that 40 Britons a day could die from the illness.
He also said the government's emergency response had moved from containing the swine flu outbreak into the "treatment phase."
The change in the government's swine flu strategy came as the World Health Organization warned that the spread of swine flu was now "unstoppable," with a total of 112 countries reporting nearly 77,201 infected people and 332 deaths since April.
Dr Margaret Chan, the WHO director general, told an international conference on swine flu in Mexico: "With well over 100 countries reporting cases, once a fully fit pandemic virus emerges its further international spread is unstoppable."
She added that while most deaths had so far occurred in people with serious underlying medical conditions, there were a few exceptions that caused concern.
"For reasons that are poorly understood, some deaths are occurring in perfectly healthy young people," she said.
10 humor sites sure to make you LOL
Bored with Pearl, the cursing toddler landlord demanding rent money? Not amused by those cutesy pictures of cats with the baby-speak captions?
The Web is full of clever blogs and funny sites, including many that find comedy in real life.
Maybe you need some fresh sources of Internet humor. The Web is full of clever blogs and funny sites, including many that collect amusing gags from users and find comedy in real life.
Click away from the cats and replenish your list of favorite bookmarks with these 10 new or lesser-known humor sites:
Awkward Family Photos
Snapping the perfect family photo creates stress for anyone involved. Should we go casual and wear blue jeans with polo shirts on a beach or be a bit crazy, wear matching outfits and -- wait for it -- lean toward the camera? Ah, choices. This user-powered blog highlights the most well, awkward, family photos submitted by its contributors. Just don't show this to your mom for portrait suggestions.
My Life is Average
Breaking news: Your life is most likely mundane and not glamorous or melodramatic like "Gossip Girl." Thankfully, someone has finally created a Web site for average people to commiserate about their average-ness. For a taste, here is a recent posting: "Today, I ate a "Fun Size" Snickers bar. I think that the regular size is more fun. MLIA (My life is average)."
My Parents Joined Facebook
Logging on to Facebook, one is bombarded these days with pointless quizzes, embarrassing photos and a friend request from ... Mom? The inevitable has happened -- your parents are on Facebook. Using submissions from users, this site highlights just what a foreign place Facebook is to parents. If you think associating with them in person is uncomfortable, this blog highlights the awkwardness that comes when your mom takes a "What porn star are you?" quiz.
Someone has found a way to make the Garfield cat comic strip funny: edit out Garfield. The author, who recently released a book of these comic strips, digitally edits out Garfield for a less-than-flattering portrayal of Garfield's owner, Jon Arbuckle. Without his lasagna-loving cat, he looks like a lonely man who talks to himself -- and whose life resembles that of "The 40-Year-Old Virgin." Remember, if you are having a bad day, it could be worse -- you could be Jon.
Laser Portraits
The 1980s brought great advancements in the photography world, such as the first SLR camera, the BetaCam and ... laser backgrounds. It was a magical world back then, where little Jimmy posed for his school picture not against a typical light-blue background but a "Tron"-like video game gone awry. Looking at these pictures, one has to wonder if the use of those dangerous lasers injured any kids.
Historical Tweets
Who needs high school when history can be explained in 140 characters? Did you know the origin of the Rev. Martin Luther King Jr.'s "I Have a Dream" speech? @martinlkjr tweets: "Bought a sleep journal. I keep having dreams but forget to write them down."
Safety Graphics
Safety signs are supposed to protect us from the dangers of big, scary machines and equipment. But most of the time, the signs turn out to be a parody of themselves. This blog gathers photos of actual safety signs with symbols of people being electrocuted, crushed by garage doors and so on. The "No Weapons Allowed" sign would not deter any killer from shooting the place up.
Someecards
These electronic greeting cards offer wry commentary on everything from birthdays to topical events such as swine flu and the death of Michael Jackson. A recent Father's Day card said, "You're the best father I can imagine unless you lost my inheritance in the economic meltdown in which case I can imagine better."
Graph Jam
The task of illustrating a depressing point, like a company's plunging profits, always lands on the poor graph. But no one said the lowly graph always has to be bleak -- or boring. This Web site displays the best user-submitted graphs on a variety of oddball topics, from the percentage of people who dislike Michael Jackson to things people want to do in New Jersey (No. 1 option: Leave). Although GraphJam has been around for awhile, it remains one of the cleverest sites on the Internet.
This is Why You're Fat
Feeling regretful about those French fries you had with lunch? Here is a site that makes those greasy treats look healthy. Witness the chicken finger bacon pizza, which is drenched in Thousand Island dressing and baked to golden perfection, or the Pattie LaBurger, a triple-bacon cheeseburger that uses deep-fried burger patties as buns. If you dare to eat any of these, make sure you have a cardiologist on speed dial.
Bored with Pearl, the cursing toddler landlord demanding rent money? Not amused by those cutesy pictures of cats with the baby-speak captions?
The Web is full of clever blogs and funny sites, including many that find comedy in real life.
Maybe you need some fresh sources of Internet humor. The Web is full of clever blogs and funny sites, including many that collect amusing gags from users and find comedy in real life.
Click away from the cats and replenish your list of favorite bookmarks with these 10 new or lesser-known humor sites:
Awkward Family Photos
Snapping the perfect family photo creates stress for anyone involved. Should we go casual and wear blue jeans with polo shirts on a beach or be a bit crazy, wear matching outfits and -- wait for it -- lean toward the camera? Ah, choices. This user-powered blog highlights the most well, awkward, family photos submitted by its contributors. Just don't show this to your mom for portrait suggestions.
My Life is Average
Breaking news: Your life is most likely mundane and not glamorous or melodramatic like "Gossip Girl." Thankfully, someone has finally created a Web site for average people to commiserate about their average-ness. For a taste, here is a recent posting: "Today, I ate a "Fun Size" Snickers bar. I think that the regular size is more fun. MLIA (My life is average)."
My Parents Joined Facebook
Logging on to Facebook, one is bombarded these days with pointless quizzes, embarrassing photos and a friend request from ... Mom? The inevitable has happened -- your parents are on Facebook. Using submissions from users, this site highlights just what a foreign place Facebook is to parents. If you think associating with them in person is uncomfortable, this blog highlights the awkwardness that comes when your mom takes a "What porn star are you?" quiz.
Someone has found a way to make the Garfield cat comic strip funny: edit out Garfield. The author, who recently released a book of these comic strips, digitally edits out Garfield for a less-than-flattering portrayal of Garfield's owner, Jon Arbuckle. Without his lasagna-loving cat, he looks like a lonely man who talks to himself -- and whose life resembles that of "The 40-Year-Old Virgin." Remember, if you are having a bad day, it could be worse -- you could be Jon.
Laser Portraits
The 1980s brought great advancements in the photography world, such as the first SLR camera, the BetaCam and ... laser backgrounds. It was a magical world back then, where little Jimmy posed for his school picture not against a typical light-blue background but a "Tron"-like video game gone awry. Looking at these pictures, one has to wonder if the use of those dangerous lasers injured any kids.
Historical Tweets
Who needs high school when history can be explained in 140 characters? Did you know the origin of the Rev. Martin Luther King Jr.'s "I Have a Dream" speech? @martinlkjr tweets: "Bought a sleep journal. I keep having dreams but forget to write them down."
Safety Graphics
Safety signs are supposed to protect us from the dangers of big, scary machines and equipment. But most of the time, the signs turn out to be a parody of themselves. This blog gathers photos of actual safety signs with symbols of people being electrocuted, crushed by garage doors and so on. The "No Weapons Allowed" sign would not deter any killer from shooting the place up.
Someecards
These electronic greeting cards offer wry commentary on everything from birthdays to topical events such as swine flu and the death of Michael Jackson. A recent Father's Day card said, "You're the best father I can imagine unless you lost my inheritance in the economic meltdown in which case I can imagine better."
Graph Jam
The task of illustrating a depressing point, like a company's plunging profits, always lands on the poor graph. But no one said the lowly graph always has to be bleak -- or boring. This Web site displays the best user-submitted graphs on a variety of oddball topics, from the percentage of people who dislike Michael Jackson to things people want to do in New Jersey (No. 1 option: Leave). Although GraphJam has been around for awhile, it remains one of the cleverest sites on the Internet.
This is Why You're Fat
Feeling regretful about those French fries you had with lunch? Here is a site that makes those greasy treats look healthy. Witness the chicken finger bacon pizza, which is drenched in Thousand Island dressing and baked to golden perfection, or the Pattie LaBurger, a triple-bacon cheeseburger that uses deep-fried burger patties as buns. If you dare to eat any of these, make sure you have a cardiologist on speed dial.
Hapless Harrington continues poor run of form
-- Three-time major winner Padraig Harrington admits that his game is in poor shape ahead of his bid for a third successive British Open title this month.
Padraig Harrington is seeking to regain the form that saw him rise to third in the world rankings.
The Irishman has just two tournaments left in which to find some form after missing a fifth successive cut, failing to make the weekend rounds at the European Tour's French Open following a five-over par 75 on Friday.
The 38-year-old has been experimenting with his swing despite last year adding the 2008 US PGA Championship to his two Claret Jugs to become the first European golfer to win back-to-back major events. Harrington tries Happy Gilmore swing.
The Dubliner has slumped from third in the world rankings to 11th, and now heads to his home Irish PGA Championship and then the Scottish Open at Loch Lomond ahead of his title defense at Turnberry.
Harrington, who last played four rounds of an event at the Players Championship in Florida in early May, tallied 66 putts in his two rounds at the French Open.
Friday's effort in Versailles was marred by a triple-bogey eight at the 14th hole after he drove out of bounds, while he also three-putted 13. See Adam Scott's tips for playing around the greens.
"I was never comfortable on the greens all week," Harrington said. "I'm hoping that's all it was. I just struggled, just putted terribly and didn't get any confidence. That's reflected in the score.
"It showed up the weakness in my putting. I've been happy with it and still am physically, but it certainly got on top of me this week, and that's where the focus will be.
"You don't just click, but I have another week. The last six months the focus has been on my swing and, definitely now I will be firmly focused on my previous strength -- a good, sharp short game.
"I'm not worried about how hard they set up Turnberry. I will be more worried about how I am, but I can manage any challenge.
"It would be hard to see me going out and shooting 20 under par in great conditions. It would be easier to see me shooting four or six under in tough conditions, battling it out.
"But that could all change next week. I could go out next week and shoot 20 under par at the European Club and think that I am on top of the world."
Argentina's Rafa Echenique of Argentina took a two-stroke lead at the halfway stage in Paris, following up his opening 65 with a 67 to be on 10-under-par 132.
He was chased by first-round leader Martin Kaymer, South Africa's Charl Schwartzel (66) and England's Steve Webster (65).
Kaymer was unable to repeat his fine form from the opening day, when he shot a sizzling 62, and was this time one over for the day.
Other big names to miss the cut of one-over 143 alongside Harrington included Masters champion Angel Cabrera (145), Jeev Milkha Singh of India (145) and out-of-form 2005 U.S. Open winner Michael Campbell of New Zealand (154).
-- Three-time major winner Padraig Harrington admits that his game is in poor shape ahead of his bid for a third successive British Open title this month.
Padraig Harrington is seeking to regain the form that saw him rise to third in the world rankings.
The Irishman has just two tournaments left in which to find some form after missing a fifth successive cut, failing to make the weekend rounds at the European Tour's French Open following a five-over par 75 on Friday.
The 38-year-old has been experimenting with his swing despite last year adding the 2008 US PGA Championship to his two Claret Jugs to become the first European golfer to win back-to-back major events. Harrington tries Happy Gilmore swing.
The Dubliner has slumped from third in the world rankings to 11th, and now heads to his home Irish PGA Championship and then the Scottish Open at Loch Lomond ahead of his title defense at Turnberry.
Harrington, who last played four rounds of an event at the Players Championship in Florida in early May, tallied 66 putts in his two rounds at the French Open.
Friday's effort in Versailles was marred by a triple-bogey eight at the 14th hole after he drove out of bounds, while he also three-putted 13. See Adam Scott's tips for playing around the greens.
"I was never comfortable on the greens all week," Harrington said. "I'm hoping that's all it was. I just struggled, just putted terribly and didn't get any confidence. That's reflected in the score.
"It showed up the weakness in my putting. I've been happy with it and still am physically, but it certainly got on top of me this week, and that's where the focus will be.
"You don't just click, but I have another week. The last six months the focus has been on my swing and, definitely now I will be firmly focused on my previous strength -- a good, sharp short game.
"I'm not worried about how hard they set up Turnberry. I will be more worried about how I am, but I can manage any challenge.
"It would be hard to see me going out and shooting 20 under par in great conditions. It would be easier to see me shooting four or six under in tough conditions, battling it out.
"But that could all change next week. I could go out next week and shoot 20 under par at the European Club and think that I am on top of the world."
Argentina's Rafa Echenique of Argentina took a two-stroke lead at the halfway stage in Paris, following up his opening 65 with a 67 to be on 10-under-par 132.
He was chased by first-round leader Martin Kaymer, South Africa's Charl Schwartzel (66) and England's Steve Webster (65).
Kaymer was unable to repeat his fine form from the opening day, when he shot a sizzling 62, and was this time one over for the day.
Other big names to miss the cut of one-over 143 alongside Harrington included Masters champion Angel Cabrera (145), Jeev Milkha Singh of India (145) and out-of-form 2005 U.S. Open winner Michael Campbell of New Zealand (154).
Host Tiger takes charge at Congressional
-- Tiger Woods took a one-shot lead at the tournament he hosts after carding a four-under-par 66 in the second round of the AT&T National at Congressional Country Club on Friday.
Tiger Woods is seeking to win the tournament that he hosts, having missed it last year due to injury.
The world No. 1 had trailed defending champion Anthony Kim by two strokes after the opening round, despite shooting 64 -- his lowest opening round in two years.
Due to his knee surgery, the 33-year-old missed last year's second edition of the PGA Tour event, which benefits the Tiger Woods Foundation and honors U.S. servicemen and women.
But he appears intent on making up for last time in 2009, despite bogeying his second hole of the day, the par-four 11th. Top 10 celebrity golfers
Woods responded with birdies at 13,15 and 16, then picked up further shots at the par-four first and eighth holes to close on 10-under 130 at the halfway stage.
"I didn't drive the ball as well as I did yesterday or hit my irons as crisp," Woods said. "Either I hit it pretty close to the hole, within 10 feet, or I was missing greens. So it was a little bit of two ends today.
-- Tiger Woods took a one-shot lead at the tournament he hosts after carding a four-under-par 66 in the second round of the AT&T National at Congressional Country Club on Friday.
Tiger Woods is seeking to win the tournament that he hosts, having missed it last year due to injury.
The world No. 1 had trailed defending champion Anthony Kim by two strokes after the opening round, despite shooting 64 -- his lowest opening round in two years.
Due to his knee surgery, the 33-year-old missed last year's second edition of the PGA Tour event, which benefits the Tiger Woods Foundation and honors U.S. servicemen and women.
But he appears intent on making up for last time in 2009, despite bogeying his second hole of the day, the par-four 11th. Top 10 celebrity golfers
Woods responded with birdies at 13,15 and 16, then picked up further shots at the par-four first and eighth holes to close on 10-under 130 at the halfway stage.
"I didn't drive the ball as well as I did yesterday or hit my irons as crisp," Woods said. "Either I hit it pretty close to the hole, within 10 feet, or I was missing greens. So it was a little bit of two ends today.
"It was nice to actually get a score out of it. I didn't shoot myself in the foot and had a stretch there from basically 17 through three where I didn't really hit the ball all that well, but somehow was able to get through it and keep the momentum of the round going."
Fellow American Kim failed to build on his course-record opening 62, and fell to third place behind Australian Rod Pampling on eight-under 132 after carding a 70 which featured three birdies and three bogeys.
"It was a grind, possibly one of the toughest ball-striking days I've had in a long time, even with all my injuries (this year) and I feel good," Kim said.
"I stayed positive and made a couple of key putts to keep me in it so it's not so bad to be third after a rough day."
The 39-year-old Pampling, seeking his third PGA Tour victory, catapulted himself into second place with a fine seven-birdie 64.
Jim Furyk was in fourth place on seven-under after carding 67, to be one ahead of fellow Bryce Molder and DA Points, who both shot 70, and Sweden's Daniel Chopra (68).
U.S. Open champion Lucas Glover matched playing partner Woods with a 66 to take him to five-under, alongside former world amateur No. 1 Danny Lee of New Zealand (67), Australia's Stuart Appleby (69), American Ryan Moore (66) and compatriot Cameron Beckman (67).
Former Masters champion Mike Weir scraped into the weekend rounds with a one-over 71 putting him on the cut of 142, but U.S. Ryder Cup captain Paul Azinger missed out along with Australia's Robert Allenby, England's Paul Casey and Korean K.J. Choi.
Fellow American Kim failed to build on his course-record opening 62, and fell to third place behind Australian Rod Pampling on eight-under 132 after carding a 70 which featured three birdies and three bogeys.
"It was a grind, possibly one of the toughest ball-striking days I've had in a long time, even with all my injuries (this year) and I feel good," Kim said.
"I stayed positive and made a couple of key putts to keep me in it so it's not so bad to be third after a rough day."
The 39-year-old Pampling, seeking his third PGA Tour victory, catapulted himself into second place with a fine seven-birdie 64.
Jim Furyk was in fourth place on seven-under after carding 67, to be one ahead of fellow Bryce Molder and DA Points, who both shot 70, and Sweden's Daniel Chopra (68).
U.S. Open champion Lucas Glover matched playing partner Woods with a 66 to take him to five-under, alongside former world amateur No. 1 Danny Lee of New Zealand (67), Australia's Stuart Appleby (69), American Ryan Moore (66) and compatriot Cameron Beckman (67).
Former Masters champion Mike Weir scraped into the weekend rounds with a one-over 71 putting him on the cut of 142, but U.S. Ryder Cup captain Paul Azinger missed out along with Australia's Robert Allenby, England's Paul Casey and Korean K.J. Choi.
Echenique leads as Monty mounts charge
Rafa Echenique of Argentina holds a slender one-shot lead over Germany's Martin Kaymer going into the final round of the French Open with European Ryder Cup captain Colin Montgomerie also in title contention.
Third round leader Echenique tees off at Le Golf National.
Montgomerie, runner-up at Le Golf National near Paris last year, has not had a top-10 finish since, but fired a third round 65 to be six back.
Ian Poulter, warming up for another tilt at the British Open where he was second to Padraig Harrington last year, is also challenging after a 66 to be five back.
Monty is pleased to be running into form into form ahead of the third major of the season and believes the course at Turnberry gives him a chance with many writing off his chances of ever claiming a mamor.
"God no -- I was eighth there in 1994 and The (British) Open gives me my best opportunity if it's fast-running," he told Press Association after his round which included a 97-yard pitch into the sixth hole for an eagle two.
But he will have his work cut out to catch the in-form Echenique, who opened with rounds of 65 and 67 and followed up with a 70 to be 11-under overall on the Albatross course.
Echenique, who finished second at the BMW Open in Munich last week with a spectacular albatross two of his own on the final hole, is chasing a first European Tour victory.
"Just a little nervous today," Echenique told the official European Tour Web site www.europeantour.com.
Paul Waring of England climbed to third from seventh with a three-under 68 to trail by two shots, one ahead of his compatriot Seve Benson, who is named after the Spanish legend Seve Ballesteros.
Benson shares fourth alongside Australian left-hander Richard Green and Swede Peter Hanson.
Ryder Cup star Lee Westwood also remains in the hunt after a 70 to be four shots behind.
Kaymer, who opened up with a couse record-equaling 62 on Thursday, stayed firmly in the hunt with a two-under 69.
"There were a lot of very difficult pins today," he said.
The $5.65 million tournament has attracted a strong field ahead the British Open in two weeks time, but lost its star attraction when Harrington missed the cut after a second round 75, his fifth straight missed cut.
Rafa Echenique of Argentina holds a slender one-shot lead over Germany's Martin Kaymer going into the final round of the French Open with European Ryder Cup captain Colin Montgomerie also in title contention.
Third round leader Echenique tees off at Le Golf National.
Montgomerie, runner-up at Le Golf National near Paris last year, has not had a top-10 finish since, but fired a third round 65 to be six back.
Ian Poulter, warming up for another tilt at the British Open where he was second to Padraig Harrington last year, is also challenging after a 66 to be five back.
Monty is pleased to be running into form into form ahead of the third major of the season and believes the course at Turnberry gives him a chance with many writing off his chances of ever claiming a mamor.
"God no -- I was eighth there in 1994 and The (British) Open gives me my best opportunity if it's fast-running," he told Press Association after his round which included a 97-yard pitch into the sixth hole for an eagle two.
But he will have his work cut out to catch the in-form Echenique, who opened with rounds of 65 and 67 and followed up with a 70 to be 11-under overall on the Albatross course.
Echenique, who finished second at the BMW Open in Munich last week with a spectacular albatross two of his own on the final hole, is chasing a first European Tour victory.
"Just a little nervous today," Echenique told the official European Tour Web site www.europeantour.com.
Paul Waring of England climbed to third from seventh with a three-under 68 to trail by two shots, one ahead of his compatriot Seve Benson, who is named after the Spanish legend Seve Ballesteros.
Benson shares fourth alongside Australian left-hander Richard Green and Swede Peter Hanson.
Ryder Cup star Lee Westwood also remains in the hunt after a 70 to be four shots behind.
Kaymer, who opened up with a couse record-equaling 62 on Thursday, stayed firmly in the hunt with a two-under 69.
"There were a lot of very difficult pins today," he said.
The $5.65 million tournament has attracted a strong field ahead the British Open in two weeks time, but lost its star attraction when Harrington missed the cut after a second round 75, his fifth straight missed cut.
Armstrong 10th in opening stage of Tour
-- Lance Armstrong returned to the Tour de France for first time in four years by finishing 10th in the opening time trial in Monaco which was won by Fabian Cancellara of Switzerland.
Armstrong powers past the famous casino at Monte Carlo on the first stage.
Cancellara, renowned for his awesome performances against the clock, clocked 19 minutes 32.14 seconds for the 15.5 kilometer course in the Mediterranean principality.
Armstrong's Astana teammate and Tour favorite Alberto Contador finished in second place at 18 seconds with Britain's Bradley Wiggins in third.
Seven-time Tour champion Armstrong was the 18th of the starters in the 180-strong field and briefly held the lead with a respectable time of 20 minutes 12.36 seconds which eventually left him 40 seconds adrift of Saxo Bank powerhouse Cancellara.
The 37-year-old Texan looked strong on the initial climbs which took the riders high above Monte Carlo before descending to the finish with a series of technical turns at high speed.
Germany's Tony Martin from Team Columbia-High Road and another Astana rider Levi Leipheimer quickly bettered his time, but Armstrong was satisfied with his performance.
"It felt pretty good," he told Eurosport. "I didn't have an big illusions, I didn't expect to win and take the (yellow) jersey, but relative to the specialists like Levi and Tony Martin it was good," he added.
The opening time trial was expected to give an early indicator of the form of the leading contenders and Astana team leader Contador showed his climbing ability by having the fastest time at the intermediate check point high above Monte Carlo.
But Cancellara's extra power proved the difference in the closing kilometers as he set an unassailable time.
He caught Giro d'IItalia winner and Tour contender Denis Menchov for a minute to claim the first yellow jersey of the 96th edition of cycling's most famous race.
For Menchov it was valuable time lost, while of the other favorites Cadel Evans of Australia rode strongly to claim fifth on the stage, but only five seconds adrift of Contador.
Defending champion Carlos Sastre of Spain finished one minute and eight seconds behind Cancellera.
As expected, Astana look to have a strong hand with Armstrong rounding out four of their team in the top 10, with Andreas Kloeden in fourth and Leipheimer sixth.
After Saturday's race against the clock, the next big test for riders with pretensions to be wearing the yellow jersey in Paris in three weeks time comes in the Pyrenees on stage seven.
Armstrong, who won a record seven straight Tours from 1999-2005, announced his return to cycling last year, saying he wanted to publicize his cancer charities.
-- Lance Armstrong returned to the Tour de France for first time in four years by finishing 10th in the opening time trial in Monaco which was won by Fabian Cancellara of Switzerland.
Armstrong powers past the famous casino at Monte Carlo on the first stage.
Cancellara, renowned for his awesome performances against the clock, clocked 19 minutes 32.14 seconds for the 15.5 kilometer course in the Mediterranean principality.
Armstrong's Astana teammate and Tour favorite Alberto Contador finished in second place at 18 seconds with Britain's Bradley Wiggins in third.
Seven-time Tour champion Armstrong was the 18th of the starters in the 180-strong field and briefly held the lead with a respectable time of 20 minutes 12.36 seconds which eventually left him 40 seconds adrift of Saxo Bank powerhouse Cancellara.
The 37-year-old Texan looked strong on the initial climbs which took the riders high above Monte Carlo before descending to the finish with a series of technical turns at high speed.
Germany's Tony Martin from Team Columbia-High Road and another Astana rider Levi Leipheimer quickly bettered his time, but Armstrong was satisfied with his performance.
"It felt pretty good," he told Eurosport. "I didn't have an big illusions, I didn't expect to win and take the (yellow) jersey, but relative to the specialists like Levi and Tony Martin it was good," he added.
The opening time trial was expected to give an early indicator of the form of the leading contenders and Astana team leader Contador showed his climbing ability by having the fastest time at the intermediate check point high above Monte Carlo.
But Cancellara's extra power proved the difference in the closing kilometers as he set an unassailable time.
He caught Giro d'IItalia winner and Tour contender Denis Menchov for a minute to claim the first yellow jersey of the 96th edition of cycling's most famous race.
For Menchov it was valuable time lost, while of the other favorites Cadel Evans of Australia rode strongly to claim fifth on the stage, but only five seconds adrift of Contador.
Defending champion Carlos Sastre of Spain finished one minute and eight seconds behind Cancellera.
As expected, Astana look to have a strong hand with Armstrong rounding out four of their team in the top 10, with Andreas Kloeden in fourth and Leipheimer sixth.
After Saturday's race against the clock, the next big test for riders with pretensions to be wearing the yellow jersey in Paris in three weeks time comes in the Pyrenees on stage seven.
Armstrong, who won a record seven straight Tours from 1999-2005, announced his return to cycling last year, saying he wanted to publicize his cancer charities.
Thứ Tư, 1 tháng 7, 2009
The trouble with annuities
Fixed annuities promise tax-deferred growth at guaranteed rates. But the shelter they offer can end up a trap.
(Money Magazine) -- With the uncertainty of the market these days, a lot of investors are running for cover with their retirement funds. No wonder sales of fixed annuities surged 74% for the first three months of 2009, according to research association LIMRA.
These insurance products provide tax-deferred growth at a fixed rate - higher than that of CDs now - with the option to later turn the money into guaranteed income for life. It's a compelling pitch. But there's a costly catch. Getting into a fixed annuity today may force you to miss better opportunities tomorrow.
Know what's being sold
First, a clarification - because the world of annuities is anything but clear. The term "fixed annuity" typically refers to a deferred annuity. That's different from an immediate annuity, for which you turn over a lump sum to an insurer and start getting regular payments within a year. Deferred annuities are more like CDs; in fact, insurers often promote them as a higher-yielding alternative.
Aimed at retirees and pre-retirees, deferred annuities may promise a high teaser rate - based on prevailing interest rates - in year one, then readjust yearly based on market conditions, with a guaranteed minimum. (See the graphic.) Or they may offer a more modest fixed rate for longer. For example: In May, Mutual of Omaha offered 4.65% the first year for contracts of $100,000 or more, with 3.65% in years two through five. (That's compared with an average of 2.19% on a five-year CD at the time.)
While there's no term on either type of contract, you're hemmed in for five to seven years by surrender fees, often around 7% initially. (Some do allow yearly fee-free withdrawals of up to 10% of the account value, however.)
Unlike in a CD, money in a fixed annuity grows tax-deferred. But you'll pay a 10% tax penalty if you take it out before age 59½. You'll also pay ordinary income tax on interest when you withdraw.
Usually you have the option to annuitize - turn the balance into lifetime payments - anytime after the first year. But many people choose not to, instead using the product as a way to achieve tax-deferred growth.
Know the downsides
The major disadvantage of fixed annuities is opportunity cost. With such high exit fees, it's prohibitively expensive to back out of a contract. So you could miss the rise in interest rates and improvement in market conditions that many experts are predicting. Worst case: Your money ends up lagging behind price increases. "In an inflationary period, having 4% fixed in long-term money could be devastating," says Salt Lake City financial planner Ray LeVitre, author of "The Retiring Boomer's Financial Handbook."
Know your alternatives
If safe growth is your objective, consider short- to intermediate-term high-quality corporate and municipal bonds instead. These have been offering yields higher than CDs and have fewer restrictions than fixed annuities. Plus, with muni bonds, the interest is tax-free - a benefit that will be especially valuable if tax rates go up in coming years. Sometimes it pays to keep it simple.
If you want to guarantee income
If what has attracted you to a fixed annuity is the paycheck for life, consider instead an immediate annuity, which starts paying right away. You don't have to lock into an investment option first - and you can get a bigger monthly payout than you would by annuitizing a deferred annuity, says Mark Maurer of Low Load Insurance Services. To get the best deal, follow these tips:
1. Wait till you really need the income. The older you are when you sign up, the bigger your payment will be. (Recently a $100,000 contract for a 75-year-old man paid about $880 a month, vs. $680 for a 65-year-old.) Interest rates are an even bigger factor, so if you need income now, consider annuitizing some money today and some later, when rates may be higher.
2. Don't commit all of your portfolio. Just annuitize enough to create the income you need. That way you'll have the flexibility to take advantage of a market recovery with the rest of your assets.
3. Get multiple quotes. Talk to at least three brokers or shop online at a site like immediateannuities.com, and compare the offerings with low-load options from companies like Vanguard.
4. Vet the insurer. Look for at least an AA rating from firms like Standard & Poor's and A.M. Best. And ask your state insurance regulator what complaints have been filed against the insurer.
Fixed annuities promise tax-deferred growth at guaranteed rates. But the shelter they offer can end up a trap.
(Money Magazine) -- With the uncertainty of the market these days, a lot of investors are running for cover with their retirement funds. No wonder sales of fixed annuities surged 74% for the first three months of 2009, according to research association LIMRA.
These insurance products provide tax-deferred growth at a fixed rate - higher than that of CDs now - with the option to later turn the money into guaranteed income for life. It's a compelling pitch. But there's a costly catch. Getting into a fixed annuity today may force you to miss better opportunities tomorrow.
Know what's being sold
First, a clarification - because the world of annuities is anything but clear. The term "fixed annuity" typically refers to a deferred annuity. That's different from an immediate annuity, for which you turn over a lump sum to an insurer and start getting regular payments within a year. Deferred annuities are more like CDs; in fact, insurers often promote them as a higher-yielding alternative.
Aimed at retirees and pre-retirees, deferred annuities may promise a high teaser rate - based on prevailing interest rates - in year one, then readjust yearly based on market conditions, with a guaranteed minimum. (See the graphic.) Or they may offer a more modest fixed rate for longer. For example: In May, Mutual of Omaha offered 4.65% the first year for contracts of $100,000 or more, with 3.65% in years two through five. (That's compared with an average of 2.19% on a five-year CD at the time.)
While there's no term on either type of contract, you're hemmed in for five to seven years by surrender fees, often around 7% initially. (Some do allow yearly fee-free withdrawals of up to 10% of the account value, however.)
Unlike in a CD, money in a fixed annuity grows tax-deferred. But you'll pay a 10% tax penalty if you take it out before age 59½. You'll also pay ordinary income tax on interest when you withdraw.
Usually you have the option to annuitize - turn the balance into lifetime payments - anytime after the first year. But many people choose not to, instead using the product as a way to achieve tax-deferred growth.
Know the downsides
The major disadvantage of fixed annuities is opportunity cost. With such high exit fees, it's prohibitively expensive to back out of a contract. So you could miss the rise in interest rates and improvement in market conditions that many experts are predicting. Worst case: Your money ends up lagging behind price increases. "In an inflationary period, having 4% fixed in long-term money could be devastating," says Salt Lake City financial planner Ray LeVitre, author of "The Retiring Boomer's Financial Handbook."
Know your alternatives
If safe growth is your objective, consider short- to intermediate-term high-quality corporate and municipal bonds instead. These have been offering yields higher than CDs and have fewer restrictions than fixed annuities. Plus, with muni bonds, the interest is tax-free - a benefit that will be especially valuable if tax rates go up in coming years. Sometimes it pays to keep it simple.
If you want to guarantee income
If what has attracted you to a fixed annuity is the paycheck for life, consider instead an immediate annuity, which starts paying right away. You don't have to lock into an investment option first - and you can get a bigger monthly payout than you would by annuitizing a deferred annuity, says Mark Maurer of Low Load Insurance Services. To get the best deal, follow these tips:
1. Wait till you really need the income. The older you are when you sign up, the bigger your payment will be. (Recently a $100,000 contract for a 75-year-old man paid about $880 a month, vs. $680 for a 65-year-old.) Interest rates are an even bigger factor, so if you need income now, consider annuitizing some money today and some later, when rates may be higher.
2. Don't commit all of your portfolio. Just annuitize enough to create the income you need. That way you'll have the flexibility to take advantage of a market recovery with the rest of your assets.
3. Get multiple quotes. Talk to at least three brokers or shop online at a site like immediateannuities.com, and compare the offerings with low-load options from companies like Vanguard.
4. Vet the insurer. Look for at least an AA rating from firms like Standard & Poor's and A.M. Best. And ask your state insurance regulator what complaints have been filed against the insurer.
Dollar dips against the euro
European shares rally on regional manufacturing reports but investors remain wary ahead of Thursday's U.S. jobs report.
LONDON (Reuters) -- The dollar slipped against the euro Wednesday on higher European shares and improving readings of manufacturing activity in the region, but gains were limited as investors awaited U.S. employment figures the following day.
Purchasing managers' indices from a host of European countries improved slightly in June from the previous month, suggesting that the region's economy is stabilizing.
The data helped to keep the euro near the day's high against the dollar, but the pair remained off a three-week high touched the previous day as risk demand was limited.
Investors awaited a policy announcement by the European Central Bank on Thursday, as well as U.S. non-farm payrolls, which will be scrutinized to gauge whether the deterioration in the U.S. jobs market is starting to stabilize.
"The fact that we didn't get anything unpleasant in the PMIs like downward revisions, is helping the euro," said Daragh Maher, senior currency strategist at Calyon in London.
Ahead of Thursday's payrolls, this week has already seen a barrage of economic data, but a mixed bag of economic readings has failed to produce a strong argument either for or against an improvement in the global economy.
Maher said this has limited currency movements - helping to keep the euro/dollar within its rough range of $1.38-$1.42 for all of June - and added that range trade would continue barring a major payrolls surprise to the upside or downside.
The euro was up 0.3% at $1.4070, boosted by a 1.2% rise in European shares. The pair stayed below $1.4152, its highest since June 11, hit according to Reuters data on Tuesday.
The dollar index which tracks its performance against a basket of currencies, was slightly lower at 80.05.
Against the yen, the dollar rose half a percent to 96.85 yen, as the Japanese currency came under some selling pressure across the board.
Traders said the yen struggled broadly as Japanese institutional investors sold the currency at the start of the new quarter, along with a smaller-than-forecast improvement in the Bank of Japan's June tankan corporate survey.
Economic reports
Data on Tuesday showed that euro zone manufacturing PMI rose to 42.6 in June from 40.7 in May, largely in line with expectations.
The figures suggested that the manufacturing sector continues to improve, although PMI remains below the 50 level that separates growth from contraction.
Analysts pointed out that the jewel in the PMI readings was the Swedish figure, which rose to 50.5, more than expectations for 45.0 and showing growth.
Still, the figures failed to stir significant risk appetite, as optimism about the global economy was tempered by weak U.S. consumer confidence and UK gross domestic product data.
0:00 /1:01Euro deflation
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On Tuesday, the U.S. Conference Board's consumer confidence index fell in June, suggesting the 18-month-long recession had yet to loosen its grip on the economy.
Also clouding the economic picture was data showing the UK economy shrank at its fastest pace in more than 50 years in the first quarter, suggesting the economy is continuing to struggle.
"It is becoming clear that risk appetite is starting to lack consistency and any catalyst could trigger a broad correction amid weak summer liquidity conditions," analysts at UBS said in a research note.
The U.S. employment report is due on Thursday as U.S. financial markets will be shut on Friday for the Independence Day holiday. Economists expect the economy shed 363,000 jobs in June after losing 345,000 in May.
The European Central Bank is expected to hold interest rates at a record low 1% on Thursday. Investors will be watching to see if it will offer more details of its plans to buy covered bonds, a quantitative easing measure intended to boost the economy.
European shares rally on regional manufacturing reports but investors remain wary ahead of Thursday's U.S. jobs report.
LONDON (Reuters) -- The dollar slipped against the euro Wednesday on higher European shares and improving readings of manufacturing activity in the region, but gains were limited as investors awaited U.S. employment figures the following day.
Purchasing managers' indices from a host of European countries improved slightly in June from the previous month, suggesting that the region's economy is stabilizing.
The data helped to keep the euro near the day's high against the dollar, but the pair remained off a three-week high touched the previous day as risk demand was limited.
Investors awaited a policy announcement by the European Central Bank on Thursday, as well as U.S. non-farm payrolls, which will be scrutinized to gauge whether the deterioration in the U.S. jobs market is starting to stabilize.
"The fact that we didn't get anything unpleasant in the PMIs like downward revisions, is helping the euro," said Daragh Maher, senior currency strategist at Calyon in London.
Ahead of Thursday's payrolls, this week has already seen a barrage of economic data, but a mixed bag of economic readings has failed to produce a strong argument either for or against an improvement in the global economy.
Maher said this has limited currency movements - helping to keep the euro/dollar within its rough range of $1.38-$1.42 for all of June - and added that range trade would continue barring a major payrolls surprise to the upside or downside.
The euro was up 0.3% at $1.4070, boosted by a 1.2% rise in European shares. The pair stayed below $1.4152, its highest since June 11, hit according to Reuters data on Tuesday.
The dollar index which tracks its performance against a basket of currencies, was slightly lower at 80.05.
Against the yen, the dollar rose half a percent to 96.85 yen, as the Japanese currency came under some selling pressure across the board.
Traders said the yen struggled broadly as Japanese institutional investors sold the currency at the start of the new quarter, along with a smaller-than-forecast improvement in the Bank of Japan's June tankan corporate survey.
Economic reports
Data on Tuesday showed that euro zone manufacturing PMI rose to 42.6 in June from 40.7 in May, largely in line with expectations.
The figures suggested that the manufacturing sector continues to improve, although PMI remains below the 50 level that separates growth from contraction.
Analysts pointed out that the jewel in the PMI readings was the Swedish figure, which rose to 50.5, more than expectations for 45.0 and showing growth.
Still, the figures failed to stir significant risk appetite, as optimism about the global economy was tempered by weak U.S. consumer confidence and UK gross domestic product data.
0:00 /1:01Euro deflation
vidConfig.push({videoArray: ["/video/markets/2009/06/30/mkts_europe_euro_deflation.cnnmoney.json"], collapsed:false});
On Tuesday, the U.S. Conference Board's consumer confidence index fell in June, suggesting the 18-month-long recession had yet to loosen its grip on the economy.
Also clouding the economic picture was data showing the UK economy shrank at its fastest pace in more than 50 years in the first quarter, suggesting the economy is continuing to struggle.
"It is becoming clear that risk appetite is starting to lack consistency and any catalyst could trigger a broad correction amid weak summer liquidity conditions," analysts at UBS said in a research note.
The U.S. employment report is due on Thursday as U.S. financial markets will be shut on Friday for the Independence Day holiday. Economists expect the economy shed 363,000 jobs in June after losing 345,000 in May.
The European Central Bank is expected to hold interest rates at a record low 1% on Thursday. Investors will be watching to see if it will offer more details of its plans to buy covered bonds, a quantitative easing measure intended to boost the economy.
'Goodbye and good riddance' AIG directors!
Taxpayers oust the majority of AIG's board, to the delight of many long-time shareholders. But the government will hold its stake for awhile.
NEW YORK (CNNMoney.com) -- AIG shareholders, a.k.a. U.S. taxpayers, ousted the majority of the company's leadership at AIG's annual shareholders meeting Tuesday, removing the overseers of one of the biggest corporate unravelings in American history.
Just three of the 11 directors that oversaw the company's downward spiral in September remained on AIG's board. Two directors who were placed on the board after the company came undone, including Chief Executive and Chairman Edward Liddy, also stayed in place.
AIG's three trustees, who represent the government's near-80% controlling interest in the company, elected the new directors on behalf of the taxpayers.
The six directors who did not stand for re-election were not in attendance at the annual meeting.
The company's longer-term shareholders stood before Liddy and a small group of about 150 other shareholders, voicing loud objections to the old board. Many tied irresponsible management by AIG's board to the near-catastrophic losses of shareholders' stakes in the company.
"I notice none of the [outgoing] directors are here today," said one shareholder, Kenneth Steiner. "They left like rats leaving a sinking ship. Well, goodbye and good riddance."
AIG's new leadership will oversee AIG's repayment of more than $80 billion in debt owed to taxpayers as well as the company's roadmap to recovery, nicknamed "Project Destiny."
The new board includes former executives from American Express (AXP, Fortune 500), Boeing (BA, Fortune 500), KPMG, Delphi, Sears (SHLD, Fortune 500) and Northwest Airlines (DAL, Fortune 500). Liddy called them all "extremely talented," and suggested they they were well suited to help oversee the company's transition over the next several years.
Liddy, who announced last month that he would relinquish his two positions, said that he expects the new board will find a replacements "soon." The CEO and chairman positions are expected to be split.
Taxpayers to hold onto AIG for a while. The company has previously said that it could take up to five years before the government is fully repaid. Liddy said Tuesday that there is "an excellent chance" the company will be able to repay the taxpayers.
For long-time AIG shareholders, the government's stake has been an onerous burden, vastly reducing the value of their holdings. One shareholder, Jon Levin, suggested that AIG lobby the government to cut taxpayers' 80% stake in the company as the government begins to pay the insurer back, calling the large stake "a disaster suffered by the shareholders."
But Liddy said he could give no assurances that the government will ever reduce its stake in the company.
Shares of AIG (AIG, Fortune 500) tumbled Tuesday afternoon after shareholders ratified a 20-1 reverse stock split, which will take effect at 5 p.m. ET. The stock was trading at about $1.15 a share in afternoon trading, down 14% from Monday's close. Though shares have nearly quadrupled in the recent near four-month stock market rally, AIG's stock is still down more than 90% from the day before the company's bailout was announced in September.
Angry shareholders. A number of times throughout the 45-minute meeting, Liddy said he felt bad for the many shareholders whose holdings were nearly wiped out by the company's collapse.
In response to one unidentified shareholder who was looking for guidance after telling Liddy that her AIG shares were worth just 2% of their peak value, Liddy conceded that though AIG's stock "could recover, the question is, will another stock recover faster?"
"I'm sorry for what's happened to you," added Liddy. "I wish you luck."
In an effort to prevent future collapses of the company, groups of shareholders proposed three motions for adoption, including curbs on executive compensation, reincorporation in shareholder-friendly North Dakota and the ability to hold special meetings to elect a new board of directors mid-term.
"Perhaps we could have avoided the problems we are facing now by putting a new board in place" through special elections, said Steiner, who proposed the latter two motions. "We lost 99% of our money, and no one is being held accountable," he added.
The trustees voted down Steiner's motion as well as the other two shareholder proposals.
Taxpayers oust the majority of AIG's board, to the delight of many long-time shareholders. But the government will hold its stake for awhile.
NEW YORK (CNNMoney.com) -- AIG shareholders, a.k.a. U.S. taxpayers, ousted the majority of the company's leadership at AIG's annual shareholders meeting Tuesday, removing the overseers of one of the biggest corporate unravelings in American history.
Just three of the 11 directors that oversaw the company's downward spiral in September remained on AIG's board. Two directors who were placed on the board after the company came undone, including Chief Executive and Chairman Edward Liddy, also stayed in place.
AIG's three trustees, who represent the government's near-80% controlling interest in the company, elected the new directors on behalf of the taxpayers.
The six directors who did not stand for re-election were not in attendance at the annual meeting.
The company's longer-term shareholders stood before Liddy and a small group of about 150 other shareholders, voicing loud objections to the old board. Many tied irresponsible management by AIG's board to the near-catastrophic losses of shareholders' stakes in the company.
"I notice none of the [outgoing] directors are here today," said one shareholder, Kenneth Steiner. "They left like rats leaving a sinking ship. Well, goodbye and good riddance."
AIG's new leadership will oversee AIG's repayment of more than $80 billion in debt owed to taxpayers as well as the company's roadmap to recovery, nicknamed "Project Destiny."
The new board includes former executives from American Express (AXP, Fortune 500), Boeing (BA, Fortune 500), KPMG, Delphi, Sears (SHLD, Fortune 500) and Northwest Airlines (DAL, Fortune 500). Liddy called them all "extremely talented," and suggested they they were well suited to help oversee the company's transition over the next several years.
Liddy, who announced last month that he would relinquish his two positions, said that he expects the new board will find a replacements "soon." The CEO and chairman positions are expected to be split.
Taxpayers to hold onto AIG for a while. The company has previously said that it could take up to five years before the government is fully repaid. Liddy said Tuesday that there is "an excellent chance" the company will be able to repay the taxpayers.
For long-time AIG shareholders, the government's stake has been an onerous burden, vastly reducing the value of their holdings. One shareholder, Jon Levin, suggested that AIG lobby the government to cut taxpayers' 80% stake in the company as the government begins to pay the insurer back, calling the large stake "a disaster suffered by the shareholders."
But Liddy said he could give no assurances that the government will ever reduce its stake in the company.
Shares of AIG (AIG, Fortune 500) tumbled Tuesday afternoon after shareholders ratified a 20-1 reverse stock split, which will take effect at 5 p.m. ET. The stock was trading at about $1.15 a share in afternoon trading, down 14% from Monday's close. Though shares have nearly quadrupled in the recent near four-month stock market rally, AIG's stock is still down more than 90% from the day before the company's bailout was announced in September.
Angry shareholders. A number of times throughout the 45-minute meeting, Liddy said he felt bad for the many shareholders whose holdings were nearly wiped out by the company's collapse.
In response to one unidentified shareholder who was looking for guidance after telling Liddy that her AIG shares were worth just 2% of their peak value, Liddy conceded that though AIG's stock "could recover, the question is, will another stock recover faster?"
"I'm sorry for what's happened to you," added Liddy. "I wish you luck."
In an effort to prevent future collapses of the company, groups of shareholders proposed three motions for adoption, including curbs on executive compensation, reincorporation in shareholder-friendly North Dakota and the ability to hold special meetings to elect a new board of directors mid-term.
"Perhaps we could have avoided the problems we are facing now by putting a new board in place" through special elections, said Steiner, who proposed the latter two motions. "We lost 99% of our money, and no one is being held accountable," he added.
The trustees voted down Steiner's motion as well as the other two shareholder proposals.
Oil climbs above $71 on inventory drop
Futures gain more than $1 after an industry group says U.S. stockpiles of crude fell and Nigerian militants attack oil installations.
LONDON (Reuters) -- Oil rose above $71 a barrel on Wednesday following a large drop in crude inventories in the United States, the world's top energy consumer, and output disruptions from militant attacks in Nigeria.
Crude futures were trading up $1.15 to $71.04 a barrel after rising as high as $71.28. London Brent crude rose $1.15 to $70.45.
Weekly oil data from a U.S. industry group released late on Tuesday helped oil prices to reverse the day's loss, which was dragged by weak U.S. consumer confidence.
Data from the American Petroleum Institute showed on Tuesday a 6.8 million barrel decline in U.S. crude inventories, larger than analysts' forecast for a drawdown of 2 million barrels.
"Maybe we have already seen the peaks in the stock levels and we could start entering a phase where we see a slow reduction (in stock levels)," Olivier Jakob with Petromatrix said.
Market focus has now shifted to a separate set of data from the U.S. government, which is seen as more reliable by investors, due out later on Wednesday.
The U.S. Energy Information Administration (EIA) is also expected to show a fall in crude inventories due to higher refinery runs ahead of the Independence Day weekend.
OPEC's policy to keep output cuts intact since last year has started to be reflected into some statistics and traders would be watching U.S. crude import volumes in the EIA statistics, Jakob said.
Export disruptions from Nigeria, an OPEC member and Africa's top oil producer, have also provided support to oil prices.
The recent escalation of civil unrest in Nigeria's oil rich Delta region has hobbled its output.
On Tuesday, oil major Royal Dutch Shell (RDS.A) said attacks by Nigerian militants have cut its output to around half of what it was producing earlier this year.
Oil prices, which have tumbled from a record high of over $147 struck in July last year to the low $30s a barrel at the turn of the year, have rallied in recent months due mainly to hopes for economic recovery.
They marked a 42% gain in the second quarter - the highest quarterly gain since 1990.
U.S. unemployment and housing data, due later on Wednesday, will also give the next clues on how the world's economies are faring and have implications for oil demand.
Futures gain more than $1 after an industry group says U.S. stockpiles of crude fell and Nigerian militants attack oil installations.
LONDON (Reuters) -- Oil rose above $71 a barrel on Wednesday following a large drop in crude inventories in the United States, the world's top energy consumer, and output disruptions from militant attacks in Nigeria.
Crude futures were trading up $1.15 to $71.04 a barrel after rising as high as $71.28. London Brent crude rose $1.15 to $70.45.
Weekly oil data from a U.S. industry group released late on Tuesday helped oil prices to reverse the day's loss, which was dragged by weak U.S. consumer confidence.
Data from the American Petroleum Institute showed on Tuesday a 6.8 million barrel decline in U.S. crude inventories, larger than analysts' forecast for a drawdown of 2 million barrels.
"Maybe we have already seen the peaks in the stock levels and we could start entering a phase where we see a slow reduction (in stock levels)," Olivier Jakob with Petromatrix said.
Market focus has now shifted to a separate set of data from the U.S. government, which is seen as more reliable by investors, due out later on Wednesday.
The U.S. Energy Information Administration (EIA) is also expected to show a fall in crude inventories due to higher refinery runs ahead of the Independence Day weekend.
OPEC's policy to keep output cuts intact since last year has started to be reflected into some statistics and traders would be watching U.S. crude import volumes in the EIA statistics, Jakob said.
Export disruptions from Nigeria, an OPEC member and Africa's top oil producer, have also provided support to oil prices.
The recent escalation of civil unrest in Nigeria's oil rich Delta region has hobbled its output.
On Tuesday, oil major Royal Dutch Shell (RDS.A) said attacks by Nigerian militants have cut its output to around half of what it was producing earlier this year.
Oil prices, which have tumbled from a record high of over $147 struck in July last year to the low $30s a barrel at the turn of the year, have rallied in recent months due mainly to hopes for economic recovery.
They marked a 42% gain in the second quarter - the highest quarterly gain since 1990.
U.S. unemployment and housing data, due later on Wednesday, will also give the next clues on how the world's economies are faring and have implications for oil demand.
Stocks ready to advance
Investors start the third quarter with key economic reports on manufacturing, home sales and employment.
NEW YORK (CNNMoney.com) -- U.S. stocks were set to open the third quarter with gains Wednesday as investors awaited reports on employment, manufacturing and home sales.
At 7:15 a.m. ET, the Dow Jones industrial average, S&P 500 and Nasdaq-100 futures were higher.
Futures measure current index values against the perceived future performance.
On Tuesday, stocks fell on a weaker-than-expected consumer confidence report and a slump in oil prices.
Nevertheless, it was the end of a positive quarter for the markets. The S&P 500 (SPX) gained 15%, marking its best quarter since the final three months of 1998.
All financial markets are closed Friday for the Independence Day weekend.
Peter Cardillo, chief market analyst for Avalon Partners, said that U.S. futures were following the lead of market gains in China, which were fueled by positive manufacturing data, as well as advances in Europe.
He said that trading in the United States will be heavily influenced by a swath of economic reports in the morning.
"We're taking our cue off Europe in anticipation of the economic data," said Cardillo.
Economic reports on tap: The June reading on private-sector employment from payroll services firm ADP is scheduled to be released at 8:15 a.m. ET. Employers are expected to have cut 394,000 jobs from their payrolls in June after cutting 532,000 in May.
Pending home sales, due out at 10 a.m. ET from the National Association of Realtors, is forecast to be unchanged in May after rising 6.7% in April.
Also at 10 a.m. ET, the Institute for Supply Management's June manufacturing index is expected to have risen to 44.6 from 42.8 in May, according to forecasts.
0:00 /0:57Mixed economic news from Japan
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May construction spending, released by the Commerce Department at 10 a.m. ET, is expected to have fallen 0.6% after posting a surprise rise of 0.8% in April.
The weekly crude oil inventories report from the Energy Information Administration is scheduled to be released midway through the morning. June auto and truck sales are due throughout the day.
General Motors: Bankruptcy court hearings continue for a second day for the Chapter 11 filing of automaker GM (GMGMQ). Judge Robert Gerber may rule on whether to approve the bankruptcy, which would allow GM to leave behind certain assets and liabilities to form a new company.
General Mills: Food producer General Mills (GIS, Fortune 500) said strong cereal sales help drive quarterly net profit to $1.07 per share, double the profit for the year-ago period.
World markets: Asian markets slipped Wednesday, with Tokyo's Nikkei index down 0.2%. European markets rose more than 1% in midday trading.
Oil and money: The price of oil jumped $1.42 to $71.31 a barrel. The dollar was higher against the yen and British pound, but lower versus the euro.
Investors start the third quarter with key economic reports on manufacturing, home sales and employment.
NEW YORK (CNNMoney.com) -- U.S. stocks were set to open the third quarter with gains Wednesday as investors awaited reports on employment, manufacturing and home sales.
At 7:15 a.m. ET, the Dow Jones industrial average, S&P 500 and Nasdaq-100 futures were higher.
Futures measure current index values against the perceived future performance.
On Tuesday, stocks fell on a weaker-than-expected consumer confidence report and a slump in oil prices.
Nevertheless, it was the end of a positive quarter for the markets. The S&P 500 (SPX) gained 15%, marking its best quarter since the final three months of 1998.
All financial markets are closed Friday for the Independence Day weekend.
Peter Cardillo, chief market analyst for Avalon Partners, said that U.S. futures were following the lead of market gains in China, which were fueled by positive manufacturing data, as well as advances in Europe.
He said that trading in the United States will be heavily influenced by a swath of economic reports in the morning.
"We're taking our cue off Europe in anticipation of the economic data," said Cardillo.
Economic reports on tap: The June reading on private-sector employment from payroll services firm ADP is scheduled to be released at 8:15 a.m. ET. Employers are expected to have cut 394,000 jobs from their payrolls in June after cutting 532,000 in May.
Pending home sales, due out at 10 a.m. ET from the National Association of Realtors, is forecast to be unchanged in May after rising 6.7% in April.
Also at 10 a.m. ET, the Institute for Supply Management's June manufacturing index is expected to have risen to 44.6 from 42.8 in May, according to forecasts.
0:00 /0:57Mixed economic news from Japan
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May construction spending, released by the Commerce Department at 10 a.m. ET, is expected to have fallen 0.6% after posting a surprise rise of 0.8% in April.
The weekly crude oil inventories report from the Energy Information Administration is scheduled to be released midway through the morning. June auto and truck sales are due throughout the day.
General Motors: Bankruptcy court hearings continue for a second day for the Chapter 11 filing of automaker GM (GMGMQ). Judge Robert Gerber may rule on whether to approve the bankruptcy, which would allow GM to leave behind certain assets and liabilities to form a new company.
General Mills: Food producer General Mills (GIS, Fortune 500) said strong cereal sales help drive quarterly net profit to $1.07 per share, double the profit for the year-ago period.
World markets: Asian markets slipped Wednesday, with Tokyo's Nikkei index down 0.2%. European markets rose more than 1% in midday trading.
Oil and money: The price of oil jumped $1.42 to $71.31 a barrel. The dollar was higher against the yen and British pound, but lower versus the euro.
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