Rays Rally to Overtake Blue Jays

Abstract: RAYS 4, BLUE JAYS 3 David Price won for the fifth time in six starts and Tampa Bay rallied from a 3-0 deficit in Toronto. Price is 11-2 with a 2.26 earned run average in 14 career starts against the Blue Jays. Price (6-2) allowed three runs in seven innings and ended his outing by retiring 12 of the last 13 batters he faced. (AP) ANGELS 4, ATHLETICS 0 Ervin Santana struck out nine during seven and two-thirds innings of four-hit ball, and Albert Pujols drove in two runs with infield singles for host Los Angeles. (AP) ROYALS 7, RANGERS 4 Mike Moustakas homered, Billy Butler and Brayan Pena each drove in two runs and visiting Kansas City kept Texas’s potent offense in check. The Royals took advantage of two throwing errors by Rangers starter Colby Lewis (3-3) to score five unearned runs in the first two innings. (AP) INDIANS 5, TWINS 0 Derek Lowe, 38, pitched his first shutout in nearly seven years, throwing a six-hitter for visiting Cleveland. Lowe (6-1) was at his sinker-balling best, inducing four double-play grounders in winning his fourth straight decision. (AP) TIGERS 10, WHITE SOX 8 Miguel Cabrera, Ryan Raburn and Austin Jackson homered during an eight-run rally in the sixth inning for visiting Detroit. (AP) PADRES 6, NATIONALS 1 Stephen Strasburg left after four innings, matching the second-shortest appearance of his 25-start career for host Washington. Strasburg gave up four runs and seven hits. His E.R.A. rose to 2.25 from 1.64. (AP) CARDINALS 7, CUBS 6 Yadier Molina hit a run-scoring single off Chicago closer Rafael Dolis with two outs in the ninth inning as St. Louis avoided a sweep and an 0-5 homestand. (AP) PHILLIES 4, ASTROS 3 Hunter Pence atoned for a ninth-inning error by hitting his second home run of the game, a solo shot in the 10th that lifted host Philadelphia . Pence connected off the former Philadelphia closer Brett Myers with one out to give the Phillies their first three-game winning streak of the season. (AP) MARLINS 6, PIRATES 2 Josh Johnson allowed two runs over seven innings for his first victory in more than a year for host Miami. Johnson (1-3), who missed the last four and a half months of last season with shoulder inflammation, had gone winless in 12 starts since April 19, 2011. (AP) BRAVES 6, REDS 2 Brian McCann homered and the host Braves scored four runs in the third inning to hand Johnny Cueto his first loss . Cueto (4-1) led the major leagues with his 1.12 E.R.A. before giving up six runs, five earned, in four innings. (AP)

Tampa Bay Rays
Toronto Blue Jays
Baseball


Clerics May Be Key to Outcome of Unrest

Abstract: With Iran ’s political establishment at war with itself, a central question lurking behind the postelection tumult is which side the country’s highly influential clerics will back. So far the mullahs — a potentially critical swing vote — have remained largely silent, with the notable exception of a few prominent grand ayatollahs, including one who has attacked the vote count as “a gross injustice.” And few religious leaders have joined the tens of thousands of Iranians expressing their fury by marching through the streets of Tehran and other cities. The clerics and their thousands of pupils, concentrated in the holy city of Qum, are a generally conservative lot who have been known to jump into the political fray en masse only when a clear winner starts to emerge. “Some clergy have come onto the scene, but they are not in the leadership,” said Mohsen Sazegara, a former aide to Ayatollah Ruhollah Khomeini now living in exile. Describing the protestors, he said, “They are not making religious or nationalistic demands, but just democratic demands.” In the past when clerics weighed in, however, they tended to dominate, with the creation of the Islamic republic in 1979 the prime example. One of the mysteries behind this week’s mass demonstrations is who is coordinating them. Some suspect that the hidden hand is the powerful political organization of former President Ali Akbar Hashemi Rafsanjani . His daughter Faezeh Hashemi Rafsanjani, a former member of Parliament famous for opening sports to women, was spotted at a march for Mir Hussein Moussavi, who the Interior Ministry says came in second in a landslide for the country’s incumbent president, Mahmoud Ahmadinejad. One of the country’s most influential clerics, Mr. Rafsanjani has been notably silent since Mr. Ahmadinejad was declared the winner last week, and there has been speculation that Mr. Rafsanjani is in Qum trying to muster clerical opposition to the country’s leaders. But those reports are difficult to confirm with any authority. Mr. Rafsanjani leads the 86-member Assembly of Experts, whose duties include endorsing the performance of the supreme leader, Ayatollah Ali Khamenei, who on Saturday called the election’s outcome “a divine blessing.” In theory, the group has the power to remove him, but that has never been done and any attempt to do so would probably further inflame the situation, analysts said. The analysts say about a third of the Assembly members are loyal to Mr. Rafsanjani. Of the other members, perhaps a quarter are considered loyal to Ayatollah Mesbah Yazdi, a mentor to Mr. Ahmadinejad and a staunchly conservative figure who has suggested that allowing the public a voice in elections serves only to sully God’s laws. The rest are viewed as independents who could vote either way. Mr. Ahmadinejad, who defeated Mr. Rafsanjani in the 2005 presidential vote, accused Mr. Rafsanjani’s clan and at least one other prominent cleric during the campaign of being corrupt. Those allegations prompted an open letter from 36 religious scholars, including some noted hard-liners, criticizing the incumbent for his attacks on senior mullahs, said Shahram Kholdi, a teaching fellow at the University of Manchester, in Britain. The way the government handles the public ire could be a further step toward alienating the clergy. “If the clergy become Khamenei’s enemy, just think about it,” Mr. Kholdi said. “The shah made Qum his enemy, and they did not cease to plot against him until he was overthrown.” The few voices that have emerged so far were already firmly fixed in the liberal camp. The news Web site Emrooz posted two letters on Wednesday that had been written two days earlier by Ayatollah Yousof Sanai and Ayatollah Asadollah Bayat Zanjani. Both were written in response to an open appeal from Mr. Moussavi, a moderate, for prominent religious figures to weigh in about the election results. After saying he had wished that Mr. Moussavi had won, Ayatollah Sanai endorsed the idea of “protecting and ensuring the respect for the right of the people and the vote of the people and supporting their free choice.” The letter from Ayatollah Zanjani went even further, calling the election outcome a “gross injustice” and decrying the fact that in recent years “the values of the revolution are so egregiously deformed.” Those two letters followed scathing statements by the most prominent opposition ayatollah, Hossein Ali Montazeri, who was supplanted as Ayatollah Khomeini’s heir by the current supreme leader and who said “no one in their right mind” could believe last week’s election results. Another statement issued from Qum, by the Society of the Scholars and the Researchers of the Howzeh — the name for the entire seminary system — condemned the violent attacks against students at Tehran University carried out by the government-organized Basij vigilantes, Mr. Kholdi said. Of course, mullahs run the political gamut, from those who think Islam should get out of politics to those who think the rulers are divinely guided and should just eliminate elections altogether. The supreme leader has also gained the loyalty of thousands of seminary students by doling out generous government subsidies, so it is unclear what it might take for them to oppose him. Analysts suspect that Mr. Rafsanjani’s message to the rest of the religious establishment is that it is about to be eclipsed by the military, which supports the government. The risk for the supreme leader and Mr. Ahmadinejad if the mullahs shift away from them is that the idea that the government carries an Islamic stamp of approval will be undermined. “The ranks of the government supporters will dwindle and the government claim that endorsing the results is a religious duty will collapse,” said Abbas Milani, author of the book “Eminent Persians” and chairman of Stanford University’s Iranian studies program. Criticism from the mullahs would also make it nearly impossible to portray the demonstrations as some foreign plot. “When they start coming out with such strong language, the idea that this is an American phenomenon, that this is a color revolution created by a bunch of liberal, anti-Islamic prostitutes who want to walk around half naked — well, that is not going to fly,” Mr. Milani said.

Iran
Elections
Islam
Rafsanjani Ali Akbar Hashemi
Politics and Government
mullahs


A New Council Spending Inquiry

Abstract: This article is by William K. Rashbaum , Ray Rivera and Russ Buettner . The authorities are investigating whether a Queens social service agency that received city money through the efforts of Councilman Hiram Monserrate also helped politically with his campaign for the State Senate, according to a law enforcement official. The Queens district attorney’s office and the city’s Department of Investigation are looking into allegations that more than two dozen workers for the nonprofit agency, Libre, collected signatures to help Mr. Monserrate get on the ballot in 2006 for his unsuccessful bid for the 13th Senatorial District seat in Queens, the official said. Mr. Monserrate has directed more than $2.7 million in Council discretionary and capital funds to the group, including more than $2 million earmarked in the last two years for a community center, a joint project with another group the councilman finances. Although no money has been spent on that project, the councilman has also obtained nearly $400,000 more for Libre to provide a range of other services since 2004. The councilman is closely affiliated with the group, whose name stands for Latino Initiative for Better Resources and Empowerment. Several senior members of his Council staff have served as officials of the organization, and one former top executive said Mr. Monserrate recruited him for the post. Mr. Monserrate, a former New York City police officer, said in an interview on Wednesday that he was unaware of any investigation and knew nothing about any efforts by Libre to collect signatures for his nominating petitions. He declined to comment further about any investigation, saying, “The Council’s lawyers have advised us not to talk about ongoing investigations into Council discretionary funding.” Earlier this week, Mr. Monserrate asked Council leaders to withdraw funding from a second community group with which he is closely associated, one he once ran and to which he has allocated more than $330,000 since 2002. That group, the Latino Action Center, has never filed tax returns, never registered as a charity with state authorities and owes the state more than $74,000 in unpaid penalties for failing to provide workers’ compensation insurance, according to official records. Mr. Monserrate said he asked that the funds be withdrawn because the group had indicated to the city that it no longer sought them. He said he was not clear about the group’s reasons. The councilman, in what appeared to be a veiled reference to State Senator John D. Sabini, whom he is expected to challenge in the fall, contended that the investigation into the accusations that Libre had helped collect signatures for him “is clearly associated with the individual who is concerned about a primary in September.” Mr. Sabini denied any role in the inquiry, saying, “I certainly haven’t spoken to the D.A. about this, and I only know what I’ve read in the newspapers.” The relationship between council members and the community groups to which they allocate city money has come into sharp relief against the backdrop of a broader inquiry by federal prosecutors and the city’s Department of Investigation into how council members dole out millions of dollars in discretionary money they control to nonprofit agencies that provide a broad range of services. Last month, two aides to Councilman Kendall Stewart of Brooklyn were charged in federal court with embezzling $145,000 from a nonprofit organization he financed. City and federal authorities, in announcing those charges, said they were also aggressively examining the nonprofit groups that council members finance. Libre has received city contracts to help immigrants and provide job training and educational support services. The investigation into the allegations that Libre did political work for Mr. Monserrate was not directly related to the broader joint inquiry by federal prosecutors and city investigators, the law enforcement official said. Neither city nor federal authorities would say whether they were examining Libre’s finances as part of their larger inquiry. The group’s director recently acknowledged that it was “a mess,” though he noted that he believed its poor fiscal condition stemmed from sloppy record keeping rather than misconduct. As part of the inquiry into accusations about political work for Mr. Monserrate, investigators from the office of the Queens district attorney, Richard A. Brown, and the Department of Investigation reviewed the councilman’s nominating petitions filed with the Board of Elections, which bear the names of the people who collected the signatures. The investigators are trying to determine whether any of the political work was paid for with city funds allocated to Libre by Mr. Monserrate, which could lead to charges of larceny, official misconduct, filing a false instrument or falsifying business records, the official said. Kevin Ryan, a spokesman for Mr. Brown’s office, declined to comment. The Latino Action Center, the group whose funds Councilman Monserrate sought to withdraw earlier this week, is directed by his former chief of staff, Charles Castro, with whom the councilman worked in the Police Department. Mr. Castro left a phone message with a reporter on Wednesday saying he would call back, but did not. Further calls to him were not returned. Mr. Monserrate said in the interview that the group sent a letter Monday to the Department of Youth and Community Development, which was administering the money the councilman had allocated to the group. The letter said, without explanation, that the group was declining the money. He said he asked the department to withdraw the funds based on the letter. The center’s city contracts have been for such initiatives as immigration assistance, graffiti removal and job readiness programs. It is unclear where the agency operates now. A building manager and tenants at three addresses the group has listed with the city in recent years said it has not been at those locations for several years. Mr. Castro, a former police sergeant, along with Mr. Monserrate and other members of a Hispanic fraternal officers group, sued the department in 1999, arguing that it discriminated against black and Hispanic officers in meting out discipline. According to city records, Mr. Castro has been the chairman of the Latino Action Center since at least 2003. Mr. Monserrate acknowledged a close relationship with Mr. Castro and other officers of the Latino Action Center, as well as Libre, but he said “it’s a stretch” to suggest he should shoulder responsibility for their day-to-day operations. “Just because you know some of the members or have relationships doesn’t mean you’re there looking over their books or investigating their filings,” he said. He said he expected the groups he financed and the city agencies that are responsible for overseeing their operations to conduct their work with due diligence. He also said he did not believe that any officials of the group worked simultaneously for the groups and his council staff. “I think there is a distinction between people are being paid and people who are volunteering to serve on the boards and work because they care about this community,” he said. Ryan Dodge, a spokesman for the Department of Youth and Community Development, which oversaw the most of the money Mr. Monserrate allocated to the groups, declined to comment on the department’s oversight of the groups’ work, citing the ongoing investigation. Rodolfo Herrera, who has been affiliated with Libre since its start and has been its executive director since November, said much of the money earmarked for the group was for a new building to use as a community center. He said some of it was also earmarked for another nonprofit program that Mr. Monserrate has supported, Latin Technologies, which Mr. Herrera also runs.

Department of Investigation
Monserrate Hiram
Queens (NYC)
Suits and Litigation


Exxon Mobil Profit Drops as Costs Rise for Refining

Abstract: HOUSTON, Nov. 1 (AP) — The Exxon Mobil Corporation said Thursday its profit fell 10 percent in the third quarter from a year ago as the company was hurt by lower refining and chemical margins. The profit was below expectations of Wall Street analysts, and the energy company’s shares fell 3.79 percent. Exxon Mobil said net income declined to $9.41 billion, or $1.70 a share, from $10.49 billion, or $1.77 a share, in the period a year earlier. Revenue at the company, which is based in Irving, Tex., rose 2.7 percent, to $102.34 billion from $99.59 billion in the third quarter of 2006. On average, analysts expected the company to earn $1.75 a share in the latest quarter on revenue of $112.97 billion. Shares of Exxon Mobil declined $3.49, to $88.50. Exxon Mobil, which produces 3 percent of the world’s oil, said earnings from its exploration and production arm fell about 3 percent in the most-recent period, to $6.29 billion from $6.49 billion a year ago. The drop largely reflects lower natural gas prices and higher operating costs, which were mostly offset by higher realized crude oil prices. Production on an oil-equivalent basis was down 2 percent from a year ago, a concern for a company that generates more than two-thirds of its earnings from oil and gas production. Like most of its competitors, Exxon Mobil said earnings were hurt by lower global refining and marketing margins. Earnings at its refining and marketing units were $2 billion in the period, off 27 percent from the $2.74 billion it earned a year ago. Oil prices have surged in recent months, and crude oil futures have hit record levels, but lower refining margins, increased costs and other factors have hindered third-quarter earnings at some of the world’s major oil companies. Refining margins, the difference between what refiners pay for oil and what they are paid for the products they make from it, have tightened substantially in recent months.

Exxon Mobil Corp
Company Reports
Oil (Petroleum) and Gasoline


Fighting Sioux Nickname Issue Remains Unsettled

Abstract: FARGO, N.D. (AP) — Some University of North Dakota officials were hoping that a long-running dispute over the university’s Fighting Sioux nickname would be settled this week. Now it appears it could continue for several months. A state judge ruled last month that the North Dakota Board of Higher Education has the power to drop the Fighting Sioux nickname before a November deadline set as part of a settlement with the N.C.A.A. The board scheduled a meeting this week to officially retire the moniker. But Patrick Morley, the lawyer for a Spirit Lake Sioux group that sued to keep the nickname, filed an appeal late Friday to the state Supreme Court. North Dakota officials are hoping to get their teams into the Summit League, but the conference president, Tom Douple, said the university would not be considered for admission until it found a solution that made the N.C.A.A. happy. The nickname issue has been debated since the 1990s. Nearly five years ago, North Dakota was placed on a list of universities the N.C.A.A. deemed to have “hostile or abusive” American Indian nicknames or logos. North Dakota is the only college on that list that has not changed the name or logo or been granted a waiver to keep them. The Spirit Lake group and other nickname supporters hope a delay will give North Dakota a chance to get approval from the state’s two namesake tribes. A referendum last April on the Spirit Lake Sioux reservation gave overwhelming support for the nickname, but the Standing Rock Sioux tribal council has opposed it, and the tribe has not scheduled a referendum.

University of North Dakota
Native Americans
College Athletics
National Collegiate Athletic Assn


Russia: Doomsday Sect Threatens Suicide

Abstract: About 30 members of an eccentric Christian sect have retreated to a cave on a snowy hillside outside Nikolskoye in central Russia , where they have been in a standoff with the police. They took to the cave about a week ago and say they will stay underground until the apocalypse they expect in May. Attempts by the police to coax them out or at least get them to release the children with them have been met with threats to blow themselves up. The sect’s 43-year-old leader preaches apocalyptic doom and reportedly sleeps in a coffin.


Iran Billionaire Hanged for Fraud

Abstract: TEHRAN — Iran’s judiciary on Saturday executed a billionaire businessman who had been convicted of playing a central role in a $2.6 billion corruption case that has roiled the country’s banking system and political leaders. State television reported that the businessman, Mahafarid Amir Khosravi, was hanged early Saturday in Evin Prison in Tehran. He was convicted of forging letters of credit with the help of high-level bank managers in order to get loans from one of the country’s largest banks, Saderat. Political opponents of former President Mahmoud Ahmadinejad have often accused him and his team of advisers of having been connected to Mr. Amir Khosravi, who is said to have earned his fortune in banking and railroads. The embezzlement case, the largest case of fraud since the 1979 revolution, came to light almost immediately after a public falling out between Iran’s supreme leader, Ayatollah Ali Khamenei, and Mr. Ahmadinejad in 2011 over control of the Intelligence Ministry, which was said to have been investigating the case. Any involvement of Mr. Ahmadinejad or his associates was never proved, however. In another case, the wealthy businessman Babak Zanjani , who was arrested in December in Tehran, publicly admitted that he had worked with the government in order to evade international sanctions against Iran. The new government of President Hassan Rouhani says that Mr. Zanjani owes the state more than $2 billion for oil he is accused of selling on the black market.

Mahafarid Amir Khosravi
Iran
Embezzlement
Capital punishment
Babak Zanjani


Gérard de Villiers, 83, French Spy Writer, Dies

Abstract: Gérard de Villiers, a French popular novelist whose raffish, long-running spy-thriller series, S.A.S., sold more than 100 million copies and became a kind of drop box for real-world secrets from intelligence agencies around the world, died on Thursday in Paris. He was 83. The cause was cancer, his lawyer, Eric Morain, said. Mr. de Villiers was often compared to Ian Fleming, the creator of James Bond, who served as an inspiration when Mr. de Villiers created his own fictional spy hero — Son Altesse Sérénissime, or His Serene Highness, was his code name — in 1964. Though largely unknown in the Anglophone world, S.A.S. may be the longest-running fiction series ever written by a single author, and one of the best selling. For all the kinky sex and gunplay that fueled his plots, Mr. de Villiers remained a journalist at heart, and his books were based on constant travel and reporting in dozens of countries. He cultivated spies and diplomats, and he insinuated himself so thoroughly into their world that many sought him out and were then delighted to see themselves appear — always under different names — in his novels. A string of French presidents and foreign ministers read him regularly and praised his geopolitical acumen, though rarely in public. In between the sex scenes, his books often contained details of terrorist attacks, espionage and war that had not appeared anywhere else. On several famous occasions he was even ahead of the news: In 1980 he wrote a novel in which Islamist militants kill President Anwar el-Sadat of Egypt a year before the actual assassination took place. And after the Arab uprisings broke out in 2011, he wrote books about the civil wars in Syria and Libya that eerily prefigured some of the worst violence there. As a writer, he was unapologetically formulaic; he called his books “fairy tales for adults” and cranked out five a year in recent years, with no help. The last, “La Vengeance du Kremlin,” published in October, is No. 200. Even after suffering a torn aorta in 2010 that left him dependent on a walker, Mr. de Villiers continued to travel to Afghanistan, Mali, Libya and other war zones. Generations of readers have become familiar with the lurid covers of his S.A.S. books — always a scantily clad woman clutching a gun — at supermarkets and railway stations across France. He set up his own publishing line a decade ago, increasing his profits, which ran from $1 million to $1.3 million a year. Mr. de Villiers loved to flaunt his right-wing political views and was often labeled a racist and anti-Semite by French intellectuals. But his politics were partly provocation, and he earned a grudging respect from some liberals in recent years. Gérard de Villiers was born in Paris on Dec. 8, 1929, to a middle-class family with aristocratic origins. His father was a prolific playwright, often absent from home, who went by the stage name Jacques Deval. After his military service, Mr. de Villiers wrote for France Soir and other newspapers in the 1950s. His first encounter with spies was almost a fatal one: during a reporting assignment in Tunisia, he agreed to do a favor for a French intelligence officer and discovered he was a pawn in an assassination scheme. That adventure, he later said, left him with a taste for intrigue. A decade later, he was working on a detective novel in his spare time when an editor told him that Ian Fleming had died. “You should take over,” the editor said. Mr. de Villiers then created his signature spy hero, Malko Linge, by blending three real-life acquaintances: a French intelligence official, an Austrian arms dealer and a German baron. The first Malko Linge novel, “S.A.S. in Istanbul,” appeared in 1965. Malko Linge is a far cry from James Bond: He is an Austrian aristocrat who works on contract for the Central Intelligence Agency, mainly to make money for the upkeep of his castle. He pivots between an Old World life of hunting and galas in Austria and deadly spy missions in conflict zones around the world. Malko is continuously unfaithful to his Austrian fiancée, Alexandra, but never at home. Mr. de Villiers did not disguise his own struggles with fidelity; married four times, he was estranged from his wife at the time of his death. He is survived by a son, a daughter and four grandchildren. Soon after he began writing the S.A.S. series, Mr. de Villiers formed a bond with Alexandre de Marenches, a legendary Cold War spy chief who directed France’s foreign intelligence service from 1970 to 1981. Mr. Marenches, like Mr. de Villiers’s own fictional protagonist, was from an old aristocratic family, a man of great charisma who helped build a clandestine network of operatives to fight Soviet spies in Africa and the Middle East. That friendship grew into a broader relationship with French intelligence officials, who in turn helped connect Mr. de Villiers with their counterparts around the world, including members of the K.G.B., the Mossad and the C.I.A. Many of these spies also became Mr. de Villiers’s close friends, and several offered tributes to his life and work after his death became public.

Gerard de Villiers
Writer
Obituary
Spying and Intelligence Agencies


Tigers Trade Galarraga

Abstract: The Detroit Tigers traded Armando Galarraga, who lost a perfect game to an umpire’s bad call with two outs in the ninth last year, to the Arizona Diamondbacks for the minor league pitchers Kevin Eichhorn and Ryan Robowski. Galarraga became expendable when Detroit signed Brad Penny. (AP)

Baseball
Detroit Tigers
Arizona Diamondbacks
Galarraga Armando
Trades (Sports)


After Verdict, Assessing the Samsung Strategy in South Korea

Abstract: SEOUL, South Korea — When a jury in San Jose, Calif., ordered Samsung Electronics to pay $1.05 billion in damages for violating Apple ’s patents for the iPhone and iPad , it did more than decide who had infringed upon whose intellectual property. To South Koreans, the legal battle highlighted the strengths and weaknesses of both Samsung and their economy in general. “The ruling makes us reconsider the brand value of Samsung because it depicts Samsung as a copycat,” said James Song, who monitors Samsung for KDB Daewoo Securities in Seoul. “But a copycat or not, what Samsung has done with its smartphones was a brilliant move.” “Look what has happened to companies like Nokia, Motorola and BlackBerry, which didn’t do as Samsung did,” Mr. Song added, referring to competitors whose failures to adapt quickly to the smartphone boom driven by iPhones have drastically reduced their market shares. “Samsung may lack in innovation, but right now, no one can beat Samsung in playing catch-up.” For months, the South Korean media have watched avidly as Samsung, the world’s largest technology company by sales, clashes with Apple, the world’s No. 1 company by market value, over patent lawsuits in various countries. Calling Samsung South Korea ’s biggest, most profitable and most globally recognized brand barely explains the intense and often mixed emotions the name evokes among South Koreans. In Samsung, they see the crown jewel of their country’s transformation from a war-torn agrarian society into a global technology powerhouse. Once an assembler of clunky transistor radios, Samsung is now the world’s top seller of smartphones and high-resolution television sets, as well as memory chips and flat-panel displays that allow those devices and others to store and display data. Japanese companies have beaten rivals to the market with hardware innovations like flat-panel televisions and high-end mobile phones. Samsung waited for the others to test the market, and when it determined the time was right, it joined the fray to cash in. Samsung’s strategy was to build something similar to another company’s product but to make it better, faster and at lower cost. When it pounced, it flooded the market with a wide range of models that were constantly updated with incremental improvements at a speed its rivals found hard to match — a strategy best illustrated by its smartphone business. Heavy investments have not been a problem; it once secured low-cost loans from a government-controlled banking sector friendly to big businesses and now draws on its own coffers, which are sloshing with cash. Several years ago, Sony, Sharp and Panasonic were the first companies to market flat-panel televisions. But they obsessed over craftsmanship or held onto the old cathode-ray tube while dithering over the rival flat-panel technologies of plasma screen and liquid crystal displays, or LCDs. Samsung placed billion-dollar bets on mass production of television-size LCDs. Its economies of scale helped it drive down prices to create, then clinch, the LCD television market. Five years ago, Sony was the first company to make what is widely seen as the next-generation television. It featured the OLED display — organic light-emitting diode — which is thinner, more vivid and more energy-efficient. Sony was never able to mass-produce or market it; it was too expensive. Samsung and its domestic rival, LG Electronics, tiptoed in, building mass-production capabilities by first making smaller OLEDs for high-end smartphones. Then last week they pounced, announcing the marketing of 55-inch OLED televisions. “Koreans do things quicker than almost anyone,” said Anthony Michell, author of “Samsung Electronics and the Struggle for Leadership of the Electronics Industry.” “This allows them to change models, go from design to production faster than anyone at the present time. Korean companies continually set themselves challenges, like the challenge to overtake Sony in terms of brand value in the past.” Samsung Electronics is the flagship of Samsung Group , a family conglomerate that controls more than 80 companies that build oil tankers and apartment complexes, run hotels and amusement parks and sell insurance to housewives and artillery pieces to the military. The flagship’s operations are often faulted for their opacity. But analysts say that also allows Samsung to place huge bets and do so quickly. Samsung makes not only hardware but also its components; it is Apple’s biggest parts supplier and its fiercest competitor in the completed smartphone market. In a way, its rivals help Samsung compete with them. Samsung’s handset business was its growth driver, raking in 20.5 trillion won ($18 billion) in the second quarter. The strategy worked well for the latest product it dominated — smartphones — until Apple declared war over intellectual property in April 2011, accusing the South Korean company of “slavishly copying” the feel and look of its iPhone and iPad. After the court victory, Apple lawyers sought injunctions against sales of Samsung Galaxy smartphones and tablets in the American market. But those products had already lived through their life cycles in Samsung’s fast-paced marketing plan, analysts and Samsung officials said. With characteristic speed, Samsung had already retooled its latest Galaxy S III smartphones to stay ahead of the patent battle. Samsung appeared to consider the legal trouble a necessary cost of squeezing out a giant in yet another field it is fast dominating. Samsung’s smartphone sales in the second quarter grew 150 percent to 50.5 million units, or a record 35 percent of the market, according to the research firm Strategy Analytics. Apple grew 28 percent, to 26 million units. Apple will attempt a surge back with its new iPhone model this year, but Samsung is ready to introduce the Galaxy S IV as a counter. “The patent ruling and Samsung’s copycat image will have a negative impact on Samsung’s sales of cellphones and other products,” said Kevin Lee, an analyst at Korea Investment and Securities. “But Samsung will further widen the gap with Apple in the third quarter, though not as much as expected before the ruling.” Samsung is appealing the verdict, which it called “a loss for the American consumer.” Mr. Song said that despite the verdict, the fight for the smartphone market was over and had been decided in Samsung’s favor. In South Korea, where Samsung’s achievements are a source of national pride, many perceived a bias against a foreign competitor in the American jury verdict. Still, the ruling reminded South Koreans of something their country lacked, a shortcoming magnified by comparisons between Samsung and Apple. Although the name Samsung is synonymous with sophistication among South Koreans, the company has never created a product so innovative that it has defined an era in consumer culture, like the Walkman or the iPhone. “Copying and clever upgrading are no longer viable,” the daily JoongAng Ilbo, The International Herald Tribune’s publishing partner in South Korea, said in an editorial. “Samsung must reinvent itself as a first-mover, despite the huge risks involved in acting as a pioneer, if it hopes to beat the competition.”

Samsung Group
South Korea
Electronics
Telephones and Telecommunications
Inventions and Patents
Apple Inc
Smartphones


Two Desperate Teams, Only One Winner

Abstract: The two teams that played at Madison Square Garden on Wednesday night were wearing the same uniforms as the Rangers and Sabres teams that battled each other in the Eastern Conference quarterfinals last season, but both looked so different they were hardly recognizable. For the Sabres, who beat the Rangers in that series, a drop-off was forecast after they lost their two best offensive players to free agency. One, center Chris Drury, now wears a Rangers sweater. They also have a startlingly long injury list and, now, a 10-game losing streak But for the Rangers, their failure to return to playoff form has been baffling. They have no obvious excuses, only a lack of chemistry among their star players. They entered the matchup having lost six of their last seven games. So it was handy that a line of Rangers youngsters, carrying no obvious baggage, scored the goals in the Rangers’ 2-1 victory. Brandon Dubinsky, the 21-year-old center, scored the Rangers’ first goal in the first period, then won the crucial face-off that led to the second goal. It was scored by the 25-year-old forward Petr Prucha, who celebrated with his 22-year-old linemate Nigel Dawes. “Watching some of the footage after the game, it looked like they’re just playing,” Rangers Coach Tom Renney said. “They are also playing responsibly. They’re coming back hard. They work relentlessly to keep the pucks in. It’s good to see. It’s got the makings of something beyond tonight.” The season has been a winding road that has led to them onto the ice together as a unit. Dubinsky lost his temporary job as first-line center last month, and his playing time has declined. Prucha had scored only five goals in the first 46 games, and Dawes had spent most of the season in the minors. Scoring was a boost for all of them. “It’s good for everybody,” Prucha said. “It’s good for our confidence. It’s part of our game that we were missing the last couple games. I hope we’re going to keep scoring.” With forwards Brendan Shanahan and Sean Avery coming back from injuries in Wednesday’s game, the Rangers (22-20-5) had a rare night of a lineup at full strength, which meant the young players could populate the third line. They turned it into an audition for more playing time. “We can’t sit here and say Scotty and Jaromir have to get 3 points a game or we’re not going to win,” Dubinsky said. “We’ve got to focus on chipping in. In a game we score, we’re going to have a pretty good chance to win because those guys are going to do their thing naturally. If you add a goal, it’s going to give us an advantage.” Their two goals held up because Buffalo (19-19-6) scored only one, by Jason Pominville off an odd-man rush in the second period, despite five power plays and 1 minute 52 seconds of a five-on-three advantage that the Rangers killed. The effort by the Rangers’ penalty-killers was led by center Blair Betts’s two consecutive blocked shots that kept Buffalo at bay. The Rangers killed a pair of two-man disadvantages to beat Montreal on Saturday and allowed a five-on-three goal by Pittsburgh in a loss on Monday. “We seem to be putting ourselves in that situation a little too much lately,” Betts said. “We were successful against Montreal, not so successful against Pittsburgh. “When you’re kind of hit-and-miss like that, you’ve got to be disciplined. Hopefully, we’re getting it out of our system.” Buffalo hopes to be getting injuries out of its system — with forwards Derek Roy, Maxim Afinogenov and Tim Connolly out, along with defenseman Jaroslav Spacek — but has had little luck. The Rangers have been low in the luck department this season, too, which means another playoff matchup seems to be a long way away. SLAP SHOTS Sabres Coach Lindy Ruff was furious when Brendan Shanahan shoved forward Clarke MacArthur with 9.5 seconds left and MacArthur went sliding hard into the Rangers’ goal. No penalty was called, but Ruff said that Shanahan should be suspended. “It was careless, reckless,” Ruff said. “You can’t have that happen. He could have a broken neck, a broken shoulder, a broken back. If he isn’t seriously hurt, he’s lucky.”

Hockey Ice
New York Rangers
Buffalo Sabres


Consumer Debt Rises on Cars and Education

Abstract: WASHINGTON (AP) — American consumers borrowed more in November to buy cars and attend school, but they stayed cautious about using their credit cards. The Federal Reserve said Tuesday that consumers increased their borrowing in November by $16 billion from October to a seasonally adjusted record of $2.77 trillion. Image Credit The New York Times Borrowing that covers autos and student loans increased $15.2 billion. A category that measures credit card debt rose just $817 million. The sharp difference in the borrowing gains illustrates a broader trend that began after the recession. Four years ago, Americans carried $1.03 trillion in credit card debt, a high. In November, that figure was 16.5 percent lower. At the same time, student loan debt has increased significantly. The category that includes auto and student loans is 22.8 percent higher than in July 2008. Many Americans who have lost jobs have gone back to school to get training for new careers. The November increase also reflected further gains in auto sales, which rose 13.4 percent in 2012 to top 14 million units for the first time in five years. The need to replace vehicles lost to Hurricane Sandy may have helped.

Tax
Consumer behaviour
Personal finance
Debt
US Economy
Credit card
Student loan
Cars


Russian Bills Would Increase Control Over Internet and Nonprofits

Abstract: MOSCOW — Russia ’s upper house of Parliament moved to strengthen controls over the Internet and nonprofit organizations on Wednesday, prompting a warning from the United Nations human rights chief that the Kremlin is sliding back into Soviet ways. A series of initiatives have been introduced as President Vladimir V. Putin begins a six-year term, facing an increasingly assertive opposition. The government has imposed draconian fines for people who participate in unsanctioned protests, and legislators voted to reinstitute criminal charges for slander, rolling back a reform adopted seven months ago by Dmitri A. Medvedev, Mr. Putin’s predecessor. The bills approved on Wednesday would allow the government to block Web sites deemed dangerous to children and require nonprofits to identify themselves as “foreign agents” if they receive financing from outside Russia and are considered by the government to be engaged in political activities. “In just two months, we have seen a worrying shift in the legislative environment governing the enjoyment of the freedoms of assembly, association, speech and information in the Russian Federation,” said Navi Pillay, the United Nations high commissioner for human rights, in a statement released in Geneva. The criminalization of slander, she said, could “stifle all criticism of government authorities and limit the ability of individuals to address issues of transparency, corruption and abuse of power.” “I urge the government of the Russian Federation to avoid taking further steps backward to a more restrictive era,” she added, urging officials to soften the laws passed in recent weeks. Russia’s Foreign Ministry responded angrily. “We consider Ms. Pillay’s statement as unbefitting to her status as high commissioner and attempts to publicly accuse the leaders of the Russian state of failing to carry out some kinds of ‘promises’ — as outside the framework of diplomatic ethics,” the ministry said in a statement. The law on nonprofits — which passed with a vote of 141 to 1, with one abstention — has alarmed a variety of business, charity and religious groups, uncertain whether they will have to carry the label “foreign agent,” a term that invokes cold war espionage. A lawmaker tried to calm those fears in a meeting for nonprofit leaders held by the American Chamber of Commerce, saying the law would be applied only to nonprofits attempting to “change the political system.” “We understand that events have begun to take place at a faster rate, that the degree of tension in society is growing,” said a United Russia deputy, Aleksandr Petrov, an author of recent amendments to the bill. “We have one goal: to try, with the help of a number of laws, to create a certain stability, to provide for the integrity of the Russian Federation,” he said. “Yes, there should be political activity, but it should not be allowed to rock the boat which is called Russia.” Officials have repeatedly suggested that the antigovernment protests of the last six months were financed by foreign governments, and the new law requires nonprofits to deliver detailed accounting to the Ministry of Justice. Mr. Petrov said his suspicions were validated when police seized more than $1 million in cash from a safe in the home of Kseniya Sobchak, a television star and opposition leader. Ms. Sobchak has said the money was her savings. “According to operative information, which is being discussed now, it was intended to be used for rallies,” he said. “Why must such amounts circulate on the basis of gray schemes? Why can’t this money be officially given to the opposition and show that the money has been given?” The Internet legislation passed equally swiftly, with a vote of 147 lawmakers in favor, 3 abstaining and none opposed.

Russia
Law and Legislation
Nonprofit Organizations
Computers and the Internet
Putin Vladimir V
Freedom of Speech and Expression


Zimbabwe Police Defy Order to Free Lawyer, Group Says

Abstract: HARARE, Zimbabwe — The Zimbabwean police defied a high court ruling issued at midnight on Sunday ordering the release of a renowned human rights lawyer, Beatrice Mtetwa, and continued to hold her on charges of obstructing justice, a rights group said Monday. “They have defied that court order, and did not implement what they were told to do,” said Kumbirai Mafunda, spokesman for Zimbabwe Lawyers for Human Rights, an organization trying to win Ms. Mtetwa’s freedom. At a news conference in Harare, Zimbabwe Lawyers for Human Rights harshly criticized the police for continuing to detain Ms. Mtetwa despite the court order. “Human rights lawyers will not be intimidated, will not bow,” said Precious Chakasikwa, a human rights lawyer and vice chairwoman of the organization. "For every Beatrice Mtetwa that these state agents and institutions put behind bars and attempt to embarrass, humiliate and punish without lawful cause, there are 10 other human rights lawyers waiting to take up the mantle." Security officials arrested Ms. Mtetwa and three senior officials of the Movement for Democratic Change, Zimbabwe’s main opposition political party on Sunday, one day after a largely peaceful referendum on a draft constitution. Ms. Mtetwa was arrested at the home of Thabani Mpofu, a top adviser to Morgan Tsvangirai, Zimbabwe’s prime minister and the leader of the M.D.C., whose house was raided by plainclothes police officers on Sunday morning, witnesses said. The arrests follow months of harsh crackdowns on opposition politicians and civic groups in Zimbabwe ahead of a presidential election that is expected to be held this year. Image Beatrice Mtetwa Credit Desmond Kwande/Agence France-Presse — Getty Images “There is a very clear, broad campaign going on,” said Frances Lovemore of the Counseling Services Unit, an organization that provides medical and mental health services to victims of political violence. It was one of the first organizations to be singled out last year, and several employees were arrested in November. “This whole attack on the civil society is part of their campaign to delegitimize all the organizations providing any information to people about human rights abuses,” Dr. Lovemore said. After years of misrule and unrest, Zimbabwe is at a critical juncture. In 2008, Mr. Tsvangirai won the most votes in the presidential election, but refused to take part in a runoff because of violent attacks on his party’s supporters. Hundreds of people were killed and injured by the police, the army and allies of President Robert Mugabe’s party, ZANU-PF. Mr. Mugabe, who according to state radio traveled to Rome on Monday to attend Tuesday’s inauguration of Pope Francis, won the disputed runoff and remained in office. Regional powers brokered an uneasy power-sharing agreement in which the government would reform the security services, rewrite the Constitution and hold a new presidential election. But wrangling between the political parties dragged out the Constitution-writing process, and the draft that Zimbabweans voted on Saturday was substantially watered down, critics say, because it failed to check the presidents expansive powers. Still, the new charter was expected to win approval, and early results heavily tilted toward “yes” votes. The stakes are high in the presidential election. Mr. Mugabe, who has been in power since 1980 and is now 89, failed to win outright in 2008, and many here worry that he will use the country’s police and security forces to keep opposition supporters away from the polls to avoid defeat. “Already the telltale signs are there,” said Douglas Mwonzora, the senior M.D.C. official on the constitution-drafting commission. “Unless the international community takes full responsibility and discharges its full duty to ensure the regime of Mugabe is brought into check, we will see a repeat of 2008.” Zimbabweans Place High Hopes on New Constitution 11 Photos View Slide Show › Image Pete Muller for The New York Times. Human rights groups have borne the brunt of the crackdown. This month the police raided the offices of the Zimbabwe Peace Project, a pro-democracy organization, and arrested its director, Jestina Mukoko. Ms. Mukoko was also abducted and tortured by the security services in 2008. In January the leader of ZimRights, another human rights organization, was detained and accused of conducting illegal voter-registration drives. The police have seized two-way and shortwave radios from other organizations, claiming they were broadcasting illegally. Ms. Mtetwa’s arrest on Sunday particularly troubled activists. Though she has been at the forefront in defending human rights groups, some activists said, she has always acted as a lawyer defending her clients, not as an activist herself. “Her work has been very critical to keeping human rights defenders going in terms of the works they do,” said Irene Petras of Zimbabwe Lawyers for Human Rights. In a recorded statement sneaked out of the Harare police station where Ms. Mtetwa was being held, she said she had been called to Mr. Mpofu’s house on Sunday morning by one of his colleagues, who informed her that he had been arrested and that his house was being searched. She demanded that the officers show her a search warrant. “I asked for a search warrant, they said they would give it to me at the station,” Ms. Mtetwa said. “I said, no, you cannot give me a search warrant at the station after you have searched.” The officers tried to take away her cellphone and purse, but Ms. Mtetwa resisted and was placed under arrest. “The allegation is that I have been obstructing the police in the performance of their duties,” she said. “The view I take is they have been obstructing me in my duties as a lawyer. I have a client whose rights have been violated, and I am unable to help him because I am now an accused myself.”

Zimbabwe African National Union-Patriotic Front ZANU-PF


Turkey: Prosecutors in Corruption Inquiry Reassigned

Abstract: The Turkish Supreme Board of Judges and Prosecutors on Thursday reassigned 20 high-ranking prosecutors working on a corruption inquiry that has targeted the inner circle of Prime Minister Recep Tayyip Erdogan. The reassignments included the chief prosecutor of Istanbul, who has led the inquiry, the biggest threat to Mr. Erdogan since he came to power a decade ago. It was the latest move in Mr. Erdogan’s attempt to quash the inquiry. He has called the investigation a plot against him and his party, which faces three elections in the next 18 months.


A Solemn and Sun-Drenched Memorial Day in New York

Abstract: Crowds thronged a World War II aircraft carrier on the Hudson, a vintage B-17 roared over New York Harbor to bomb the Statue of Liberty with flowers, and millions flocked to parks, beaches and parades across the New York region on Monday to mark a solemn and sun-drenched Memorial Day . It was a sumptuous pseudo-summer day to be under a canopy of trees or on a sandy beach with lawn chairs, blankets and picnic lunches. Temperatures were in the 80s, the air was crystalline, soft breezes caressed the cheek and the sky was an arch of blue, touched here and there with castles of clouds. If there was a perfect spot to sit back and take it all in, Karl Junkersfeld found it in the new Brooklyn Bridge Park, with a sweeping tableau of the East River, Lower Manhattan and the harbor. From his perch on a grassy knoll, the Brooklyn and Manhattan Bridges soared overhead, historic ships slept at anchor at the South Street Seaport, and ferries and sailboats moved gently over the plate-of-pewter harbor. “It turns out this is the best spot,” said Mr. Junkersfeld, 57, a retired banker. “I like the open expanse. In the city, you usually feel so cramped. You get a breeze up here too.” On the lifeguard-staffed beaches of Long Island and New Jersey, breakers sounded through the day as crowds sprawled on the sands, slathering on the sunblock and taking in the salt scent of the sea and the shrieking seagulls. Some beachgoers even ventured into the water, whose temperature in the 50s administered a brutal shock. “It was like needles hitting you,” said Alex Olivares, of Perth Amboy, N.J., who plunged into the ocean at Belmar. “You couldn’t work your way in. You just had to run.” At Sea Bright, N.J., flashing signs leading to the beach announced that all the parking lots were full and the beaches had reached capacity. They were right. The beach was a mob of bodies: some lobster red, some tanned leather. Beach balls and Frisbees filled the air like migratory birds, but only a few people were in the surf, and fewer ventured in over their waists. “We call it waist water,” said David Fiore, 49, of Neptune, N.J., who was in knee-deep. On the Rockaway beaches in Queens, which stretch for miles, tens of thousands crowded the sands, pouring in off the A trains. At Beach 105th Street in Seaside, lifeguards in orange sweatsuits herded bathers away from wooden pilings that bookend the swimming area, blowing shrill whistles and waving their arms to warn people. “They can’t go near the jetties, the pilings,” one lifeguard explained. “They can get sucked in or hurt on the wood.” In Central Park, a dozen men and women played volleyball on a sand court with an eight-foot-high referee’s chair like the kind a lifeguard might use. “We’re fanatical,” said one of the players, Fabian Robinson, 32, of the Bronx. Nearby, sunbathers stretched out on the Sheep Meadow, serenaded by a jazz trumpet and snare drum off in the trees. It was not Jones Beach. There was no ocean, no soothing sounds of surf. But as Mr. Robinson pointed out, “I can get here in 15 minutes.” Barbecues were fired up in countless backyards in a gastronomic ritual of Memorial Day. In Prospect Park in Brooklyn, where barbecuing is prohibited in some areas because of the adverse affect of charcoal on old trees, a haze of smoke drifted in the air. Around the region — in Hicksville and Bay Shore on Long Island, in Chappaqua and New Rochelle in Westchester County, and in Clifton and Maplewood in New Jersey — there were Memorial Day parades. In cemeteries and at other sites there were honor guards, rifle salutes and speeches to remember those who died in the nation’s wars. A wreath was laid at the Soldiers’ and Sailors’ Monument in Manhattan, followed by a procession up Riverside Drive to Grant’s Tomb . A 100-foot American flag was unfurled over the deck of the Intrepid Sea, Air and Space Museum as hundreds of veterans and their families joined crowds of visitors and service personnel in an elaborate and poignant ceremony aboard the aircraft carrier on Manhattan’s West Side. It concluded with a flyover by two A-10 Thunderbolt jet fighters in the “missing man” formation. Meantime, a B-17 bomber , the war horse of the Eighth Air Force over Europe in World War II, dropped flowers over the Statue of Liberty in a tribute to seven Central Intelligence Agency employees killed by a suicide bomber in Afghanistan last December. On Staten Island, 10 people attending a Memorial Day celebration at Clove Lakes Park were injured when a powerful Marine Corps helicopter coming in for a landing whipped up a wind that broke branches off a towering tree and sent them hurtling into a crowd of about 150 people. Seven were treated at a hospital and three others at the scene for cuts and other minor injuries.

Memorial Day
New York City
Beaches
Staten Island (NYC)
New Jersey


U.S. Retail Sales in April Beat Expectations

Abstract: Sales continued to rise at American retail stores in April, an indication that the economic recovery was progressing. The Commerce Department said Friday that retail sales reached a seasonally adjusted $366.4 billion in April, a 0.4 percent increase that was slightly better than industry analysts expected. The sales figures coincided with the release of other indicators — on industrial production, manufacturing and consumer confidence — that also pointed to strengthening economic performance. But there were still signs of fragility. Much of the rise in retail sales was fueled by sales of building materials, which expanded 6.9 percent, while decreases were reported at several categories of retail stores. And the rate of overall increase was lower than in March, when sales expanded at the more robust revised monthly rate of 2.1 percent, the government said. Still, it was the seventh consecutive monthly increase, and the results were 8.8 percent higher than in April 2009. “The underlying message is that consumer spending is doing pretty well here,” said Joshua Shapiro, chief United States economist for MFR Inc. Mr. Shapiro and other economists said the figures indicated that consumers would probably contribute positively to the gross domestic product in the second quarter. “But it is unclear where it is going to settle down,” Mr. Shapiro said, adding, “although further out it will be labor market conditions which determine the underlying trend.” The trend in retail sales growth could be affected by several factors. Spending has been influenced by temporary government stimulus plans. It is not clear how long interest rates will remain low. And much depends on the outlook for jobs. Recent data show that while the economy has been adding jobs, many of the jobless, especially the long-term unemployed, are still struggling to find work. And some economists parsing the numbers of April’s retail sales found the results tepid. “Outside of sales of building materials, there is not much to get excited about in this report,” Dan Greenhaus, chief economic strategist for Miller Tabak & Company, said in a research note. Sales of motor vehicles and car parts rose 0.5 percent. Excluding that category, retail sales in April still rose 0.4 percent. At health and personal care stores, sales expanded by 0.9 percent. But spending across a broad range of other categories fell. Retail sales were all down in sporting goods, electronics, hobbies, music stores, home furnishings, and grocery and department stores. “It is mixed, but I think the recovery is still on track,” said Win Thin, a senior currency strategist at Brown Brothers Harriman & Company. “I think we will see continued modest improvement.” Consumer spending makes up some 70 percent of American economic activity, so any indications of how households are likely to spend are closely watched. The preliminary reading for May from an index on consumer sentiment was 73.3 points, up from April’s 72.2. Analysts polled by Thomson Reuters, which distributes the results of the survey on consumer sentiment by the University of Michigan, had predicted a reading of 73.5 for May. Mr. Shapiro said even though the index figure was above the low in November 2008 of 55.3, the level was still depressed. “With household balance sheets still overleveraged, the key determinant of consumer spending growth going forward will be the pace of the recovery in the labor market,” he said. New figures also showed that manufacturing activity was rebounding. The Federal Reserve said industrial production picked up for the second consecutive month, rising by 0.8 percent in April compared with a revised 0.2 percent increase in March. The increase was helped by a 2.8 percent rise in the production of construction supplies, according to the figures. Over all, industrial production has increased 5.2 percent since April 2009, the report said. The output of most major market groups, including construction, has risen, the report said. Consumer goods production expanded, with advances in appliances, furniture and carpeting. But those increases were slightly offset by declines in automotive products and home electronics. Manufacturing rose 1.0 percent and mining increased 1.4 percent, offset by a 1.3 percent decline in production by utilities, the report said. “The industrial sector is benefiting from increased domestic demand, a strong export expansion, and to an important extent from a cyclical inventory swing,” said Daniel J. Meckstroth, chief economist for the Manufacturers Alliance-MAPI. “We expect to see continued moderately strong growth in manufacturing activity this year as the industrial sector restocks and benefits from the economic recovery,” he said.

Shopping and Retail
Sales
United States Economy


As Foreign Banks Shun Europe’s Bonds, Domestic Debt Grows - News Analysis

Abstract: ATHENS — Greece . Ireland . And now, it seems, Portugal . While the circumstances that have driven these debt-ridden members of the euro zone to the brink differ, they share one common characteristic: all three countries aggressively tapped their domestic banking systems for more debt long after they had been shut out of international bond markets. With its 10-year debt trading near the record high of 7 percent reached last week, Portugal will try on Wednesday to sustain what many have come to see as nothing more than a form of bond market charades. It will try to raise up to 1.25 billion euros ($1.62 billion) in long-term financing — debt that is expected to come largely from the country’s already depleted banking system. For Portugal, as it was for Greece and Ireland before their bailouts, borrowing at such high rates from lower-quality lenders may demonstrate its economic sovereignty. But to an increasingly skeptical marketplace, borrowing on such terms reflects nothing more than the country’s unwillingness to accept the harsh reality of its fiscal condition. As a result, the Portuguese banking system takes on more debt, making it harder to restructure and thus requiring the government in Lisbon to impose more pain on its citizens, a dynamic that is now playing out in Greece. “Eighty percent of Portugal’s debt stock is held by foreigners,” said Jonathan Tepper, an analyst at Variant Perception, a research firm in London . “But the flow, now, is being financed domestically.” As its interest rates moved above 6 percent, Greece bowed out of the markets and soon after had to accept a bailout. Portugal has so far insisted that its financing needs for this year — about 20 billion euros — or 11 percent of its gross domestic product — are manageable, and compared with what Greece owed last year, they are. But with its gaping current-account and budget deficits, combined with a negligible growth rate, the market consensus is that Portugal must soon accept a bailout from Europe and the International Monetary Fund . Analysts say they believe it will involve a package of 50 billion to 70 billion euros, smaller than the Irish or Greek bailouts. All sides emphasize, however, that nothing can happen until Portugal feels it has no other choice and formally requests aid. To date, Portugal has vigorously denied that a rescue package is imminent, and Prime Minister José Sócrates reiterated that stance Tuesday. But the view in the marketplace is that it is just a matter of time before the country throws in the towel. In fact, some may ask what took so long. A year ago, the I.M.F. published the following in its annual assessment of Portugal’s economy. “The outlook: bleak.” The fund’s economists added, “The staff’s baseline scenario envisages modest adjustment, weak growth and continuing unsustainable imbalances.” Like Greece and Ireland before it, Portugal’s financing needs have become all the more dire as the foreign investors that once bought its securities stay away. They have been scared off as Europe moves closer to formalizing a new mechanism that could require the holders of bank and sovereign debt to take losses on their positions in a future crisis. But regardless of what happens to Portugal in the short term, the increased amounts of sovereign debt it is taking on compounds a recurring theme: domestic banking systems are absorbing higher levels of dubious debt, which not only infects their balance sheets but could end up being restructured. Consider the situation in Greece. According to research from Goldman Sachs , Greek banks , not those in Germany and France , are the largest holders of risky European debt. Indeed, the bank with the largest single exposure to Greek, Irish or Portuguese sovereign debt is the National Bank of Greece , which owns nearly 20 billion euros of Greek government obligations. All together, Greek banks hold 62 billion euros in sovereign Greek debt. Such a buildup within a country’s own banking system makes it all the more difficult for a government to propose a debt restructuring, given that the country’s local banks and its many unionized employees will suffer, not just faceless hedge funds abroad. In Greece, the government is in the middle of a tough restructuring program that focuses on cutting public sector wages and pensions. The only major line item of the budget that is increasing is debt interest, which, according to the European Commission , will exceed government proceeds from direct taxes by 2014. Still, government officials and bankers are resolute in insisting that Greece will not restructure its sovereign debt, and that to do so would be unacceptable after having accepted so much money from Europe and the I.M.F. “A large part of the Greek debt is hidden on the balance sheets of the Greek banks,” said Theodore Pelagidis, an economist at the University of Piraeus and the co-author of “Understanding the Crisis in Greece,” a scathing account of Greece’s economic implosion. “So you cannot just say ‘Let’s restructure.’ It is not so easy.” Goldman estimates that requiring a lender to give up 40 percent on holdings of Greek sovereign debt would result in a loss of 5.3 billion euros for the National Bank of Greece, the country’s largest bank. While that bank, which is in the process of raising fresh cash, probably has the capital to survive such a loss, Greece’s other banks may not be so lucky. As for Portugal, its domestic debt burden is divided more proportionally among foreign and domestic banks, compared with Greece. Still, two out of the three largest holders of its debt are Portuguese, Caixa Geral de Depósitos and Banco BPI, with 11 billion euros combined. The No. 2 holder, behind Caixa Geral de Depósitos, is the Spanish giant, Santander, according to Goldman, with 4.9 billion euros. But, with foreign banks increasingly reluctant to take on more risky debt from Europe’s periphery, debt loads of local banks are expected to grow — that is, until Portugal calls it quits.

Euro Crisis
Portugal
Debt
Government bond
Greece


In Push Against Muslim Cleric, Turkey Detains Police Officers and Journalists

Abstract: ISTANBUL — The Turkish police detained at least 24 police officers, journalists and media workers in raids on Sunday morning, days after President Recep Tayyip Erdogan signaled a new campaign against supporters of an influential Muslim cleric whom he has accused of attempting to overthrow his government. Eight other people were on a list of suspects accused of “using pressure, intimidation, threats,” a “smear campaign” and “fabrication of evidence” to claim the power of state as members of an illegal organization, the semiofficial press agency Anadolu reported. Mr. Erdogan has said that the organization’s members are part of a parallel structure within the state that is intended by the cleric, Fethullah Gulen, to oust him from power. Some members of the news media were also charged with “fabricating charges and evidence” in their productions to support a 2009 investigation, eventually dropped by prosecutors, that accused a group of people of being radical Islamists, the report said. Mr. Gulen lives in self-imposed exile in Pennsylvania and is believed to have many followers and sympathizers in important positions in the Turkish police and judiciary. On Sunday, the producer and director of a television show were detained in Eskisehir, in northwestern Turkey , and the scriptwriter of another series was taken into custody in Van, an eastern province, according to Anadolu. All three work for Samanyolu Broadcasting Group, which is affiliated with Mr. Gulen. In Istanbul, security officials went to the headquarters of Zaman, a pro-Gulen newspaper, to try to arrest the editor in chief. They left after lawyers for the newspaper pointed out missing signatures on the warrant, then returned later to make the arrest. Television reports showed dozens of newspaper workers holding banners in support of press freedom and chanting, “Free press cannot be silenced,” as the police initially entered the packed building. Hidayet Karaca, the president of Samanyolu, was summoned to the Istanbul Police Headquarters to answer allegations that the media organization and Mr. Gulen had tried to topple Mr. Erdogan’s pro-Islamic Justice and Development Party . Mr. Karaca was later detained. “Here’s the attitude toward an international media group with dozens of television stations, dozens of publications, dozens of radio stations not only at home, but also abroad,” Mr. Karaca said in a live broadcast as he left his home for the Police Headquarters. “This is a shameful scene, now marked in our country’s history.” Mr. Erdogan, in a televised speech on Friday, vowed to pursue members of the so-called parallel structure, which he said had challenged his rule with a corruption inquiry last year, as well as at other times. “We have gone into their lairs, and we will go into them again,” he said. “Whoever is beside them and behind them, we will bring down this network and bring it to account.” The corruption investigation implicated many of those close to Mr. Erdogan, then the prime minister. The inquiry led to resignations of three ministers and was regarded as the biggest threat to the rule of Mr. Erdogan after more than a decade in power. Mr. Gulen, who was a close ally of Mr. Erdogan for years before a falling out, denied having any role in the investigation. After the investigation, thousands of police officers and prosecutors were removed from their positions in what was seen by many as an attempt by Mr. Erdogan to eliminate Mr. Gulen’s influence in the state structure. Senior judicial bodies were also restructured in a manner that, critics say, paved the way for corruption charges to be dropped in September against 96 suspects, who were Erdogan supporters. The detentions on Sunday drew more than 1,000 people outside Zaman’s headquarters to protest repression of the news media. “This is a reckless move toward dictatorship,” Cengiz Candar, a journalist critical of the government, wrote on his Twitter account. “It is nothing else than a rough attack against media freedoms with the pretext of a ‘community operation.’ ” A State Department spokeswoman, Jen Psaki, said in a statement: “Media freedom, due process and judicial independence are key elements in every healthy democracy and are enshrined in the Turkish Constitution. As Turkey’s friend and ally, we urge the Turkish authorities to ensure their actions do not violate these core values and Turkey’s own democratic foundations.” Senior officials of the European Union, which Turkey hopes to join, issued a strongly worded statement, calling the detentions “incompatible with the freedom of media, which is a core principle of democracy.” “We expect that the principle of presumption of innocence will prevail,” the officials, Federica Mogherini and Johannes Hahn, said, “and recall the inalienable right for an independent and transparent investigation in case of any alleged wrongdoing.” The group Human Rights Watch called for clarification of the charges against journalists. “The detention of journalists and editors in the context of this latest, wider operation of arrests looks like another attempt to crack down on critical media,” said Emma Sinclair-Webb, a senior researcher on Turkey with Human Rights Watch. “The burden is on the government to produce evidence to justify accusing Zaman and Samanyolu group editors and journalists of being part of an organization which attempted to capture state power, as the Istanbul judge’s detention warrant states.” Social media networks like Twitter and YouTube were shut down by the government in March after recordings of corrupt deals between government officials and businessmen were circulated. In recent years, dozens of journalists have been investigated and charged and have lost their jobs because of critical coverage of the government. “Defining all of this within the pretext of a struggle between the government” and Mr. Gulen and his supporters was misleading, Ekrem Dumanli, Zaman’s editor in chief, said in a phone interview shortly before he was detained. Mr. Dumanli added, “The government continues to put pressure on any critical group of writers or publications left in the Turkish media.” Television cameras showed him asking for his coat before leaving with police officers, while saying: “You fear if you are guilty. We do not fear.” Hundreds of employees clapped as the editor left the building. Outside, Mr. Dumanli could barely make his way through a sea of more than a thousand people waving Turkish flags and applauding. “Turkey is proud of you,” the crowd chanted.

Turkey
Recep Tayyip Erdogan
Fethullah Gulen
News media,journalism
Freedom of the press
Police
Istanbul
Pennsylvania
Hidayet Karaca
Ekrem Dumanli


Punch Lines to Some, Earmarks Have Their Defenders

Abstract: ST. LOUIS — With their vote last week to support a moratorium on earmarks, House and Senate Republicans are taking aim at a popular target: the much-criticized system for distributing federal money that reflects politicians’ clout as much as the merits of projects in their districts. In doing so, Republicans are hoping to tap into growing public concern about federal spending, and stand up to the kind of projects that have become reliable late-night punch lines over the years, like bridges to nowhere, teapot museums and studies of pig odor. But at a local level, there remain many supporters of earmarks, who argue that they play an important role — solving basic and urgent infrastructure needs in communities — that is often lost in their cartoonish portrayals. “I don’t really care what it’s called — I’m mostly concerned about what the money is going to be used for,” said Francis G. Slay, the mayor of St. Louis, whose deteriorating flood-control system along the banks of the Mississippi went unaddressed for years until Senator Christopher S. Bond, a Republican, accelerated the slow-moving project with help from an earmark. “How can anyone vilify one of our representatives,” Mr. Slay added, “who has gone out and basically forced the federal government to fund a project that is essential to our ability to protect the property and the people of St. Louis from major flooding?” Money can take many different routes from budgets in Washington to projects in communities. The vast majority is allocated through the decisions of federal bureaucracy, which often uses formulas to rank priorities, or by the states themselves, where critics say the money is often distributed as pork anyway, only by governors and state lawmakers instead of members of Congress. Earmarks, which for all their controversy account for less than half of 1 percent of total federal spending, allow lawmakers to specify how money is used in their home states. If they were eliminated, Congress would cede more authority over spending decisions to the executive branch. The fate of earmarks remains unclear because the Republican ban is, at present, voluntary, and Democrats have not yet responded to a proposed moratorium. Critics of earmarks contend that even the most legitimate projects ought not be financed through a process that rewards influence and sidesteps normal procedures. But in some towns and cities, supporters say these earmarks provide the shortest and most direct route to paying for road, water and sewer projects. The flood-control walls in St. Louis are cited as an example of an earmark that solved an urgent problem. During the Midwestern floods of 1993, the Mississippi here reached to the steps of the Gateway Arch, peaking just two feet from the top of the flood walls. Though the decades-old walls held, unlike the barriers in many surrounding communities, the flood caused substantial damage and exposed systemic problems. In one area, the river channeled beneath the wall, forcing emergency repairs. Calls came from all sides to prepare for the next flood. Like many other projects involving highways and bridges — so long as they go somewhere — spending to repair the St. Louis flood-control system has not been controversial. But getting the money for the work has taken years. The $20 million project, which is scheduled to be completed at the end of 2012, has been praised by fans and foes of earmarks as a straightforward and cost-efficient effort to patch up an aging series of levies, flood walls and floodgates. The Army Corps of Engineers has estimated that a breach could cause more than $1.2 billion in damages. “I can’t say I’m in favor of earmarks, because I always thought they were someone’s favorite little pet projects,” said Greg Piel, a vice president at the Commercial Plating Company here, whose family business had to be ringed with makeshift levies in 1993 after the river channeled under the man-made barrier into his parking lot. “I wouldn’t call the repair of a flood wall for a city a pet project. That’s an absolute must.” Mr. Piel paused and added, “It’s really easy to cross the line between needs and wants.” Even if the projects themselves are deemed worthy, debates arise over whether they should be financed through Congressional earmarks. Last week, Representative Michele Bachmann, a Minnesota Republican who leads the Congressional Tea Party caucus and has been strongly critical of earmarks, made an exception for them. She was quoted as saying that she did not consider infrastructure projects like roads and bridges to be earmarks because of their importance. The comments immediately drew challenges. “In reality, infrastructure spending is what should absolutely not be earmarked,” said Steve Ellis, vice-president of Taxpayers for Common Sense, a nonprofit group that opposes earmarks. “We need to make these spending decisions on merit — prioritizing need like safety and congestion and economic impact rather than the muscle of the politicians involved.” There have been many bipartisan efforts over the years — like a national infrastructure bank backed by President Obama and others — to create procedures to help the federal government identify and finance the most important projects. But in the absence of a new system that would ensure that worthwhile local projects are financed, some groups are calling for reforming the earmark process rather then eliminating it. “They lend themselves to some of the worst abuse in Congress, but a lot of what’s wrong with them could be fixed,” said Phineas Baxandall, who specializes in transportation and budget issues for the U.S. Public Interest Research Group, an advocacy organization. “And if they’re going to be eliminated, some of the legitimate role they play will have to be met elsewhere.” In St. Louis, Senator Bond unapologetically defends his status as one of the top earmarkers in Congress and has criticized his colleagues’ loss of faith in them. The state’s junior senator, Claire McCaskill, a Democrat who is one of the few senators to refuse to seek earmarks, calling them arbitrary and unfair, has been pushing recently to corral Democratic votes for a moratorium. For Mr. Bond, earmarks are a matter of trusting who is best positioned to make spending decisions — politicians who know the needs of their home states or “unknown, unaccountable bureaucrats” from Washington. “I disclose what I’m going to ask for,” he said. “I brag about it when I get it. I answer any questions about it. Does a bureaucrat do that with any money they send? No.” Mr. Bond, who is retiring from the Senate in January, said he had long been frustrated in his efforts to lobby for money for the flood-wall repairs in St. Louis. The project received federal support but continued to move slowly even after Hurricane Katrina painted a vivid picture of the urban devastation that flooding can cause. The situation became more urgent because the bonds that St. Louis had approved to pay for the city’s $7 million part of the project had to be used within three years or they would expire. Mr. Bond earmarked the financing in 2008. “Talking to bureaucrats is like talking to a wall — that’s why we went around them,” he said. Even though Mrs. McCaskill said she was happy to see the money arrive for the flood-wall repairs, she said it was disingenuous to say that the project benefited from the earmark process. “It would be a slam dunk if the process was always about merit,” she said. “The reason it hadn’t gotten funded is that money was stolen by some other senator for a project that wasn’t as meritorious.”

Earmarks (Finance)
United States Politics and Government
Infrastructure (Public Works)
House of Representatives
Bridges and Tunnels


Alberto-Culver Reports Stronger-Than-Expected Profit

Abstract: The Alberto-Culver Company, the maker of personal care products including Alberto VO5, posted a stronger-than-expected quarterly profit on Monday. The company said lower commodity costs and strong demand for its Tresemmé brand of shampoo contributed to the increase. Profit increased about 69 percent to $47.2 million, or 47 cents a share, from almost $28 million, or 28 cents a share, a year earlier. Excluding one-time items, the company earned 39 cents a share, 2 cents above what analysts surveyed by Thomson Reuters had expected. Revenue in the period, which was the third quarter of the company’s fiscal year, rose 18.8 percent to $417.6 million. Stock in Alberto-Culver, which is based in Melrose Park, Ill., rose $1.53, or 5 percent, to $30.93 a share.


At Ukraine’s Perilous Border, Law Is Dispensed by Men in Masks

Abstract: KRASNYY LUCH, Ukraine — Just over the bridge here, near a crumbling blue electric station, a white sign with plain blue letters informs travelers that they are about to enter foreign territory: “Luhansk People’s Republic, Independent State.” What happened next for a group of journalists here on Saturday is a small piece of the new reality that is eastern Ukraine. A swarm of masked men, some in sweatpants, others in dirty jeans, held their guns aloft as they peered into the car windows. They first asked for documents, then to look in the trunk. Some time later they asked everyone to get out of the car. One of the men said he worked for the state security service. Some of the others seemed to be coal miners, a destitute lot angry at their bitter post-Soviet circumstances, but who they were stayed hidden. One thing was clear: After the men confiscated the journalists’ phones and installed a man with a ski mask and assault rifle in the car, the vehicle was going to go exactly where he said. Luhansk is Ukraine’s easternmost province, fitting snugly along Russia’s border like a clenched fist. But to enter through its southern flank is in fact to leave Ukraine for a perilous world where men in masks decide the fate of anyone who happens to pass by their pile of tires and slab of concrete. It is a lawless expanse where dying coal mines and joblessness feed an insurgency that has taken on a life of its own, with spies, conspiracies and hostages. It is important for another reason. Its more than 100 miles of squiggly border with Russia have proven remarkably porous in recent weeks, with reports of fighters and supplies crossing into Ukraine with relative ease. The southern portion of the region has a history of contraband. The destitution and joblessness here have driven a lively smuggling business going back years. This presents one of the most fundamental problems for Ukraine as it grapples with unrest in its east made worse by fighters from Russia. Protecting a border is one of the most basic elements of a functioning state. Without that protection, Luhansk, or at least parts of it, could devolve into a lawless buffer zone between Russia and Ukraine. On Saturday in Krasnyy Luch (translation: Red Ray), that process seemed to be in full swing. The journalists had made the trip after a weary Ukrainian border guard recounted a battle in Dyakovo, a few miles from the Russian border. Checkpoints dotted the bumpy road through the neighboring region of Donetsk, but most were run by men who ate seeds or chatted and had little interest in inspecting cars. Many had donation boxes out, like in church, collecting for the fight against Kiev. One had a mannequin’s torso and head, wearing a Soviet Army hat with a red visor, on a pile of sandbags. This checkpoint was different. A man with black sweatpants, a red face and hard eyes accused the journalists of photographing them with their phones. (That was not the case.) He was suspicious of one, an ethnic Ukrainian who is French, saying she sounded like she was from the Baltics. (One of the many persistent conspiracies is that Lithuanian women wearing white tights are working against Russians as snipers.) He was also tired. He said the men had been fighting the night before with the Ukrainian military, had taken losses and had not slept much. I thought of the tired Ukrainian border guard and wondered if it was the same fight. Protestations just made the man angrier, and he proclaimed at one point that he would not hesitate to shoot because he had “nothing to lose.” He announced they would need to take the journalists to a place he ominously called “korobka,” Russian for “box.” He directed a man with a large automatic rifle, wearing a balaclava showing only his eyes, to get into the car, and it took off. The man settled into the back seat, his gun pointed upward awkwardly. Offered almonds, he declined politely. He told everyone to surrender their phones and refused to let the driver call a friend. His name was Alexander. He had a 15-year-old daughter. The 23 years that had elapsed since the fall of the Soviet Union — he knew exactly how many it had been without doing the math — had brought excruciating decline and economic disaster. When told his land was beautiful, but the road was bad, he said, “All my life.” The ride took nearly half an hour and passed a young girl in a frilly green dress and a man walking into the woods. He looked like a soldier, but Alexander said he was going to gather mushrooms. He suggested returning when the war was over to pick some. As the car overtook a bus, some passengers stared; the car must have looked strange with Alexander, whose window was open, sitting up straight in the back seat. The destination: the main government building of Antratsyt, a town named for anthracite, or hard coal. The parking lot was buzzing with at least four military trucks and a dozen or so armed men. It felt like a border city complete with outlaws and illicit trade. It had been hours since the last sign of a Ukrainian flag. A Cossack commander in a traditional sheepskin hat looked briefly at the journalists’ documents and immediately ordered their release. Who was he, and how was he connected to the men at the checkpoint? There was no telling. A car full of escorts led the journalists back out of hostile territory. The men waved when the cars reached the last checkpoint. The journalists waved back.

Donetsk Ukraine
Luhansk
Ukraine
Russia
Krasnyy Luch Ukraine


Trinity Guardrail Installation Now Banned in More Than 30 States

Abstract: More than 30 states have banned installation of Trinity Industries’ ET-Plus guardrail systems because of safety concerns. A part of the system known as the rail head or end terminal is suspected of having a dangerous defect that could lead the guardrails to jam up and slice through vehicles. The states that have suspended installation of the guardrail units are Arizona, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New Jersey, New York, North Dakota, Oklahoma, Oregon, Texas, Utah, Vermont, Virginia, Washington, Wisconsin. Additionally, Virginia has said that it is planning to remove existing rail heads from the road. “We will work with the states to fully understand their respective concerns,” said Jeff Eller, a Trinity spokesman. “We have the highest degree of confidence in our company, our employees, and the performance and integrity of our products.” States That Have Taken Action States that have banned the use of the ET-Plus rail head. The rail head is a flat piece of steel at the front of the guardrail system that, on impact, is meant to glide along the rail and push the metal safely out of the way. In 2005, without notifying the Federal Highway Administration, Trinity narrowed the channel behind the head to four inches from five, possibly causing it to malfunction, state officials have said. On Oct. 20, a jury found that Trinity had defrauded the federal government when it kept the changes secret for years. The Federal Highway Administration subsequently ordered the company to conduct new crash tests. “The Federal Highway Administration received Trinity’s ET-Plus test plan,” Neil Gaffney, an agency spokesman, said today. “The F.H.W.A. will expeditiously, but carefully, review the plan.” The highway administration had defended the guardrail unit for more than two years, even after it learned in 2012 that Trinity had failed to report the design change, explaining that it reviewed crash tests from 2005 and 2010 that helped it determine that the guardrails remained eligible for federal funds. Although states are, in the end, responsible for their highway equipment, the Federal Highway Administration reviews safety data and certifies products as eligible for federal reimbursement.


Attackers Strike Across Iraq as Elections Approach

Abstract: BAGHDAD — Attackers struck targets across Iraq on Monday morning, setting a bloody backdrop to the last week of campaigning as Iraqis prepare to vote in local elections on Saturday. As of midday on Monday, as security officials and medical workers continued to count the dead and wounded, at least 37 people had been killed and more than 140 wounded in nearly 20 separate attacks, mostly car bombings, in Baghdad, Kirkuk, Hilla, Falluja, Nasiriya and Tikrit, according to local officials. The local elections, the first since the withdrawal of the American military at the end of 2011, are being anticipated warily by American diplomats and United Nations officials as a crucial test of Iraq’s shaky democracy. Elections or not, Iraq is subject to regular attacks that randomly target civilians, and while American officials usually stress the improvements in security since the carnage of Iraq’s civil war in 2006 and 2007, the rate of civilian deaths from terrorism has been rising since the departure of American troops, according to the United Nations. Much of the regular violence is attributed to Al Qaeda in Iraq, and in recent weeks the country has faced an increase in violence that has been clearly linked to the elections. Candidates have been assassinated, political gatherings have been targeted and, during Monday’s violence, two schools in Hilla that were to serve as polling sites were blown up by homemade bombs, although no one was killed because the schools were empty. Later in the day, in Babel Province, whose capital is Hilla, security officials declared a state of emergency after revealing that they had received intelligence that armed groups were planning to carry out attacks at polling stations across the area. On Saturday, nearly 700,000 members of Iraq’s security forces — the police and the army — cast ballots a week early, so they could be on hand to provide security next Saturday, when the rest of the country is scheduled to vote. The early vote was carried out free of violence. Martin Kobler, the United Nations representative to Iraq, released a statement praising the “smooth conduct” of the early vote. “It is of the utmost importance that voters turn out in an orderly and safe environment free of violence, threats and intimidation,” Mr. Kobler added in his statement. The cabinet of Prime Minister Nuri Kamal al-Maliki had already postponed elections in two Sunni-dominated provinces, Anbar and Nineveh, where protests against Mr. Maliki’s government are continuing. The reason given for the delay was security, but nearly everyone involved in Iraqi politics — American diplomats, opposition politicians, United Nations officials, even Iraq’s own election officials — believe the decision was a politically motivated one by Mr. Maliki to forestall the election of Sunni candidates hostile to the Shiite-dominated central government. Aside from the election-related violence, Iraq’s main Sunni insurgent group, Al Qaeda in Iraq, has strengthened itself in the period since American troops left at the end of 2011 and has spread its deadly operations beyond Iraq’s borders by fostering Al Nusra Front, the jihadist group that has become one of the most successful fighting units in Syria battling to topple the regime of Bashar al-Assad.