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Arthur DeMoulas fits Market Basket to a T

Written By Unknown on Minggu, 21 Juli 2013 | 23.40

Market Basket shoppers, workers and shareholders dodged a bullet Thursday when the grocery chain's board backed away from a proposal to fire CEO Arthur T. Demoulas, according to a former independent board member.

"There's no question in my mind that if they remove Arthur T. Demoulas as president, the value of the company will go down significantly," said Charles Roazen of Weston, who in June ended a 14-year tenure on the Tewksbury company's board. "He's an excellent operator. It would be a shame if they disrupted the culture of the company, which respects its employees ... (and) customers."

Market Basket took good advantage of a nose-diving real estate market to increase its store count and market share while remaining profitable, according to Roazen, who was elected to the board after a 1999 court order mandated three independent directors.

During a nearly 13-hour meeting Thursday in Andover, the current Market Basket board failed to act on an agenda item motioning for Demoulas' removal. Shareholders led by cousin Arthur S. Demoulas were hoping to wield new power after the June election shifted a board majority to their favor.

Arthur T. Demoulas, in a statement after the meeting, said he hoped to work constructively with the board going forward.

A spokeswoman for Demoulas had no further comment yesterday, and Arthur S. Demoulas, other shareholders and board members did not return calls for comment.

CEO since 2008, Arthur T. Demoulas is credited with increasing the 71-store chain's revenue from 
$2.48 billion in 2007 to 
$4 billion in 2012, when net income was $217 billion. And he remains well-respected in the industry, said Kevin Griffin, publisher of the Griffin Report of Food Marketing.

"He's knowledgeable, and he's a steward for a family business that has a model that works," Griffin said. "Profits are more than above average."

Employees' efforts on Demoulas' behalf — including petitions and newspaper ads — likely influenced the board, he said.

U.S. Rep. Niki Tsongas (D-Mass.) was pleased with the outcome: "... People travel from afar to take advantage of (Market Basket's) tremendous savings, the impact of which can't be understated in the daily lives of residents throughout the region. Market Basket has never stopped growing since its formative days in Lowell. ... All of this has been made possible under the leadership of Arthur T. Demoulas."


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Wall Street shrinking tech giants’ share prices

The tech sector is fizzling as big-name companies continue to struggle on Wall Street as earnings reports come in lower than expected.

Microsoft fell the most in more than four years after the company wrote off nearly $1 billion on its new tablet computer and reported declining revenue for its Windows operating system.

The Surface RT, Microsoft's tablet, has not had close to the success that Microsoft had hoped, spurring the company to cut prices by $150. 
Microsoft dropped $4.04, or 
11.4 percent, to $31.40 after reporting its earnings late Thursday.

That's the biggest one-day decline since the stock slumped 11.7 percent in January 2009.

Google dropped after its revenue fell below analysts' forecasts, partly because the Internet search leader's ad prices came in lower than expected. The most significant factor was revenue from mobile ads, which still lags behind other Internet ads in terms of profit.

Google fell $14.08, or
 1.5 percent, to $896.60.

"You have a lot of companies that were priced for perfection," said Max Wolff, senior analyst & chief economist at Greencrest Capital. "Neither of them met expectations."

Despite the market's upswing this month, there has been a growing list of poor tech company results.
 Intel and eBay also reported weak results this week, and chipmaker Advanced Micro reported a second-quarter loss because of a worldwide slump in PC demand.

Apple and Samsung phone sales have slowed, largely because the market is already saturated with smartphone owners.


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Obama commends work of consumer protection agency

WASHINGTON — President Barack Obama is commending the work of a consumer protection agency created after the economic crisis.

The Consumer Financial Protection Bureau got its first permanent director this week after the Senate voted to install Richard Cordray after years of delay.

In his weekly radio and Internet address, Obama says consumers can go to the agency to "get some measure of justice" when financial institutions disregard the rules.

He says the bureau has addressed more than 175,000 complaints and has helped recover more than $400 million in refunds for consumers.

In the Republican message, Reps. Todd Young of Indiana and Tim Griffin of Arkansas are calling on the Democratic-controlled Senate to vote on bills passed by the House to delay requirements on individuals and businesses by Obama's health care law.

___

Online:

Obama address: www.whitehouse.gov

GOP address: http://www.gop.gov/


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Italy: 5 convicted for Costa Concordia shipwreck

GROSSETO, Italy — Five employees of an Italian cruise company were convicted Saturday of manslaughter in the Costa Concordia shipwreck that killed 32 people, receiving sentences of less than three years that lawyers for victims and survivors criticized as too lenient.

The guilty verdicts for multiple manslaughter and negligence were the first reached in the sinking of the cruise liner carrying more than 4,000 crew and passengers near the Tuscan shore in January 2012.

The ship's captain, the only remaining defendant, was denied a plea bargain and is being tried separately. He faces up to 20 years, if convicted of manslaughter, causing the shipwreck and abandoning the ship.

On Saturday, lawyers representing the 32 victims of the shipwreck said the sentences of the plea bargain — a fraction of what is usually handed down for manslaughter — were inadequate given the gravity of the disaster.

"It seems like a sentence for illegal construction," said lawyer Massimiliano Gabrielli. "It's an embarrassment."

Another lawyer for victims, Daniele Bocciolini, called the sentences "insufficient" and questioned the prosecutors' hypothesis placing the lion's share of the blame on Capt. Francesco Schettino.

The five employees of the Costa Crociere SpA cruise company were charged for their respective roles in the nautical maneuver that put the ship in peril, evacuation and response to the emergency.

The longest sentence went to the company's crisis coordinator, who was sentenced to two years and 10 months. Concordia's hotel director was sentenced to two years and six months, while two bridge officers and a helmsman got sentences ranging from one year and eight months to one year and 11 months.

The bridge officials and helmsman were also convicted of a charge of causing a shipwreck, in addition to multiple manslaughter and negligence.

The court's reasoning for its decision will be released within 90 days, as is standard in Italy.

Prosecutors accused the crisis coordinator, who wasn't aboard the ship, of downplaying the severity of the emergency and delaying adequate response, while the hotel director was charged for his role in the evacuation, described by passengers as chaotic.

The helmsman was blamed for steering the ship in the wrong direction after Schettino ordered a corrective maneuver.

Prosecutor Francesco Verusio said the convictions confirmed investigators' version of events.

"I don't think there are any more doubts about the responsibility that falls above all on the shoulders of Schettino," Verusio said.

Schettino is charged with manslaughter for causing the shipwreck off the Tuscan island of Giglio and abandoning the vessel with thousands aboard. That trial opened this week, and was continued after two hearings until the end of September.

The Concordia, on a week-long Mediterranean cruise, speared a jagged granite reef when, prosecutors allege, Schettino steered the ship too close to Giglio's rocky shores as a favor to a crewman whose relatives live on the island. Schettino has denied the charges and insisted that the rock was not in nautical maps.

The reef sliced a 70-meter-long (230-foot) gash in the hull. Seawater rushed in, causing the ship to rapidly lean to one side until it capsized, then drifted to a rocky stretch of seabed just outside the island's tiny port.

Survivors have described a delayed and confused evacuation. The bodies of two victims were never found, but they were declared dead after a long search.

___

Barry contributed from Milan.


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Mich. governor front, center in Detroit bankruptcy

DETROIT — Seven governors came and went during the decades-long decay of Michigan's largest city that culminated with a humiliating collapse into financial ruin.

It's the eighth, former business executive and relative political novice Rick Snyder, who is aggressively tying his legacy to the prospects of a Detroit turnaround.

When he took office, Snyder pushed for more powers for the state to intervene in distressed cities and schools. After voters repealed the law last November, he ignored critics and signed another one. He also hired the city's turnaround specialist and, nearly four months later, blessed the request to file for bankruptcy.

For the man with the "one tough nerd" moniker, it's the latest bold decision in a 2 ½-year stretch that's remarkable for the sheer breadth and pace at which Snyder has moved. He's again in the national spotlight just a half-year after making Michigan — the bastion of the auto industry and organized labor — a right-to-work state, a move that pollsters say led a drop in his approval ratings.

Though the impact of the bankruptcy filing on Snyder's 2014 re-election may be difficult to predict, it's still a legacy definer that's being watched not only in Michigan but also by Wall Street and other elected officials across the country.

Snyder, a former venture capitalist and computer company CEO, has no known presidential aspirations.

"I don't spend time dwelling on my legacy. I just try to do my job well," the Republican governor told The Associated Press in an interview. "That's relentless positive action. No blame, no credit. Just simply solve the problem.

"Here was a problem 60 years in the making. The can was being kicked down the road for far too long. It was time to say enough was enough. Let's stop, let's stabilize, let's grow."

Detroit's bankruptcy could last at least through summer or fall 2014, when Snyder is expected to ask voters for another term.

"I deeply respect the citizens of Detroit," he said. "They along with the other 9 million people in our state hired me to do this job. They're my customers. This was a tough step, a difficult decision, but it's the right decision."

The first-term governor, perhaps more than any other state's chief executive, hasn't been afraid to confront mounting retiree pension and health care costs hampering state and city budgets. He's done that mainly by signing laws making public workers pay more of their health costs, ending retiree health care for new hires and enticing teachers to contribute more toward their future pensions.

But the stakes could be higher with the Detroit intervention under Michigan's emergency manager law.

Eric Scorsone, a Michigan State University economist and expert on government finances, said while Snyder helped revise the law to make it one of the toughest in the country, bankruptcy likely was inevitable even under the old law — unless creditors had voluntarily agreed to accept far less than what they're owed.

"Other governors may have taken different approaches. But even under the old law, if we had a different governor, it's pretty obvious something would have had to be done," he said.

Scorsone said many other U.S. cities have issues similar to Detroit, though not on the same scale. Other states will be watching to see what happens in part because Snyder — not local elected officials — is taking responsibility for improving public safety and other basic needs, he said.

"I think it's aggressive in the sense that most states don't intervene in local affairs to the same extent," Scorsone said.

Lansing Mayor Virg Bernero, a Democrat who lost to Snyder in the 2010 election, said Snyder "definitely" deserves credit if Detroit emerges in better shape, especially in providing everyday services.

"It's bold and decisive. You've got to give him credit, however late," Bernero said, adding that Snyder should have intervened in Detroit within three months of taking office in 2011.

"There was a sense of inevitability about this bankruptcy," Bernero said. "I would have moved quicker with an emergency manager. The ship couldn't right itself. Why prolong the agony? Lance the boil and move on."

Snyder first struck a consent agreement in April 2012 with the Democratic-led city to wipe out its enormous budget deficit and mountainous debt but appointed Kevyn Orr as emergency manager after that didn't work.

Steven Rattner, who was chief adviser to President Barack Obama's auto bailout task force, said from his detached vantage point in New York, Snyder "has handled this thing quite well."

While acknowledging the political difficulties associated with anything viewed as a bailout, Rattner questioned why the state and possibly the federal government aren't offering Detroit a rescue package.

"It's not logical for there to be political fallout from putting Detroit in bankruptcy because there's no other alternative to that," Rattner said. "The question people can ask is whether Snyder is offering all the help the state of Michigan can offer. ... These are tough politics either way."

There seems little appetite from either Democrats or Republicans in Washington for a federal rescue of Detroit. Bailing out the city with state money could bring resistance in the Republican-led Legislature and prompt anger from out-state residents concerned about funding their own schools and local services.

"There are so many great things going on in Detroit. We resolve the city government issue, Detroit's really well poised to see outstanding growth take place when people can say there are better services," Snyder said. "We're going to get there."

___

Associated Press writer Ed White in Detroit contributed to this report.


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Boston Entrepreneur Olympics goes for gold

Don't necessarily expect any new world records to be set at Boston's inaugural Entrepreneurs Olympics on Aug. 1. But do expect fun — and for a good cause.

There will be basketball, volleyball, a 5K race and high jump.

But for $20, you can also watch the less athletically inclined vie for first place at typing, tug-of-war, remote-control helicopter races, blind-folded baby-food tasting and bowling with human inflatable orbs.

"It's not about athletic ability," said Erica Rife, program director for the start-up accelerator MassChallenge, one of the event's partners. "It's about coming together as a team to do something for the greater good."

Sasha Hoffman, head of strategy and partnerships at the online payment company Plastiq, got the idea at a charity wine party last January.

"I thought there's really no event that brings together people's different talents," said Hoffman, who also is on the board of Build Boston, a nonprofit that uses entrepreneurship to propel disengaged, low-income students through high school to college. "I thought it would make sense to do a benefit for (Build)."

Plastiq teamed up with MassChallenge, TUGG, the New England Venture Capital Association and T3 Advisors to organize the event, setting $50,000 as their goal, said David Brown, executive director of TUGG, which raises funds for early-stage nonprofits.

By Friday, they had raised $43,000 and had signed up 300 participants, charging $40 for individuals, $500 for teams of 10 and $1,000 for teams of 20, Hoffman said.

But Build also hopes to recruit mentors at the event for the 200 young entrepreneurs it will have in September in Boston schools, said regional executive director Ayele Shakur.

The Entrepreneurs Olympics will be held from 5:30 to 8:30 p.m. at the Reggie Lewis Track and Athletic Center at 1350 Tremont St. in Roxbury Crossing.

But if you miss out, all is not lost.

"We're absolutely planning to have one next year," Hoffman said, "and to make it even bigger."


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Mastectomy aid eases recovery

Before she woke up in the hospital after her mastectomy 12 years ago, Cathy McGrath knew her breast would be gone. What she didn't plan for was multiple post-surgical drains — little plastic bulbs with a long tube — to collect fluid.

"I was really taken aback by it," the North Andover woman said. "I thought, how am I going to manage all of these?"

A nurse told her some women pin the drains to their clothes or go to Home Depot and get a tool belt to put them in.

So McGrath asked herself: What would Princess Di or Jackie O do?

"I thought there's no way they'd be going to Home Depot," she said. "They'd want something incognito, discreet, but with a lot of functionality to it, something that would make them look more like a person than a patient."

So McGrath designed the Jacki, a post-surgical jacket for breast cancer patients, and started A Little Easier Recovery, a nonprofit to give the garments away to patients.

On the outside, the Jacki looks like a classic suit jacket in black or plum. But on the inside, it has pockets all the way around the bottom.

The initial version was made of Polartec fleece. But when McGrath told her story to Polartec, the company gave her a deal on a soft, wicking material that is now used in many of the jackets. The rest are made of interlocking cotton.

In the beginning, her aunt sewed the garments, and McGrath gave them to Brigham and Women's Hospital and Tufts Medical Center. When the hospitals told her that patients loved them, she realized she was on to something and applied for nonprofit status, giving her organization a name that she thought was "humble" but fitting.

"There's absolutely nothing easy about cancer treatment," McGrath said. "The most I could give patients was a little easier recovery."

Since then, her nonprofit has given away more than 10,000 of the garments nationwide and been named a finalist in this year's MassChallenge startup accelerator and competition.

McGrath never meets the patients who wear her jackets, but she has received letters from them, like the woman who delivered her father's eulogy wearing the Jacki, or the one who wore it to her son's wedding, or the woman who was just content to wear it while she played Thomas the Train with her toddler.

"It gives patients some sense of dignity as they recover from a surgery that's affected their body image," said Cate Mullen, the nurse coordinator at Tufts Breast Center, which receives about 150 of the jackets each year. "There's a lot of pain, so it's a big relief that it's easier to get into and out of. It's a wonderful thing we can offer them."


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If you’re smelling burning oil, look out for a leak

I have a 2005 Mazda 6 with the 3-liter V6 engine and 70,000 miles. I do my own oil changes and for the past several changes have noticed a strong smell of burning oil when stopped at lights or in traffic, lasting three weeks after I have done the oil change. I am very careful not to spill any oil onto the exhaust when removing the filter, and to eliminate this possibility I left the filter in place after the last change. This failed to eliminate the problem. The engine burns no oil between changes and no smoke is visible from the exhaust. Any help would be greatly appreciated.

In most cases, smelling hot oil at idle indicates some type of external leak or spillage that drips onto the hot exhaust. In addition to the exhaust components near or under the oil filter, check to make sure no oil is dripping from the valve cover gaskets onto the exhaust manifolds, particularly from the front valve cover with the oil filler cap. Perhaps enough oil collects against the gasket when you refill the engine with fresh oil that it slowly migrates past the gasket and drips on the manifold.

The other system to focus on is the positive crankcase ventilation (PCV) system. Your engine features a PCV valve plumbed into the induction system downstream of the throttle plate, meaning engine vacuum pulls crankcase vapors into the combustion chambers where they are burned. If the PCV valve is stuck or clogged and doesn't open under engine vacuum, the crankcase may become somewhat pressurized and force oil and vapors past the piston rings and into the combustion chambers.

I have an '83 Jeep CJ-7 with the 258 six-cylinder engine. The oil pressure gauge was showing about 50 pounds per square inch when it suddenly went to zero. I connected a mechanical gauge to the engine block and it showed 60 psi. Is this an easy fix? How does the electrical gauge work?

Could you mount the mechanical gauge in or under the dash? If so, you've "fixed" your problem. I've always preferred mechanical gauges anyway for two reasons — they are instant and accurate, and not subject to electrical gremlins.

To determine whether the problem is the gauge or the electrical sending unit on the engine, disconnect the wire from the sending unit and connect a 12-volt test light from this wire to ground. Turn on the ignition. If the lamp flashes, the instrument voltage regulator is good. If the lamp stays lit, the regulator is bad. If the lamp doesn't light, check the regulator's connections and ground. And check for an open circuit in the connection from the regulator to the gauge.

And finally, if the lamp flashes as it should but the gauge isn't accurate, the gauge is the likely culprit.

My 2005 Grand Marquis is scaring me. I put on the brakes to stop but the car suddenly accelerated. I pushed on my brakes with all my might but the car kept going. I had to shift into neutral. By that time I was out in traffic against the light. This has happened three times. My shop could not find anything wrong. Please help!

I am so pleased to hear that you remember the simplest way to stop/prevent any type of unintended acceleration — shift into neutral! The other quick answer is to turn off the key.

What could have caused this? I can only speculate but I would suggest having the cruise control cable disconnected to eliminate this possibility. I would also inspect very carefully the power brake vacuum system, booster and check valve. A sudden, large vacuum leak could bleed off power assist to the brakes while at the same time possibly cause the engine idle speed to suddenly increase.

Did you feel any rapid pulsing in the brake pedal when this occurred, indicating ABS activation? Check for diagnostic trouble codes (DTCs) from the ABS system. Ford also suggests checking the ABS module connector for water intrusion.

Paul Brand, author of "How to Repair Your Car," is an automotive troubleshooter, driving instructor and former race-car driver. Readers may write to him at: Star Tribune, 425 Portland Ave. S., Minneapolis, Minn., 55488 or via email at paul brand@startribune.com. Please explain the problem in detail and include a daytime phone number. Because of the volume of mail, we cannot provide personal replies.


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House GOP on health care: For repeal, not replace

WASHINGTON — Three years after campaigning on a vow to "repeal and replace" President Barack Obama's health care law, House Republicans have yet to advance an alternative for the system they have voted more than three dozen times to abolish in whole or in part.

Officially, the effort is "in progress" — and has been since Jan. 19, 2011. That's according to GOP.gov, a leadership-run website.

But internal divisions, disagreement about political tactics and Obama's 2012 re-election add up to uncertainty over whether Republicans will vote on a plan of their own before the 2014 elections.

Or, if not by then, perhaps before the president leaves office, more than six years after the original promise.

Sixteen months before the midterm elections, some Republicans cite no need to offer an alternative.


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US Treasury Secretary Lew in Greece for talks

ATHENS, Greece — U.S. Treasury Secretary Jack Lew urged Greece on Sunday to continue its efforts to stabilize its debt-ridden economy and capitalize on the sacrifices already made "to ensure prosperity and growth for generations to come."

Lew was on a one-day visit to Greece after attending a Group of 20 summit in Russia.

In an hour-long meeting with Finance Minister Yannis Stournaras, Lew discussed Greece's austerity program, its long-term prospects, and visits the so-called troika of Greece's creditors — the European Commission, the European Central Bank and the International Monetary Fund — have made to Greece, said Dimitris Kanellisa, a Finance Ministry spokesman.

Later, Lew met with Prime Minister Antonis Samaras at an unusual setting, the Acropolis Museum, not the Greek leader's office.

Samaras is due to meet President Barack Obama in Washington next month.

"Our talks focused on the obvious challenges of stability and growth," Samaras told reporters before he and Lew dined under the Acropolis. "We need stability in the region to boost growth, which for us means jobs, investment opportunities and prosperity."

Lew said the U.S. is closely following Greece's efforts to end its economic crisis.

"We recognize the difficult decisions and sheer sacrifices made by Greece in the past few years, as well as the challenges that remain," he said. "Continued reform will be essential to laying the foundations for future growth."

Lew also said, "Engagement with Europe remains at the top of my agenda because U.S. jobs and growth are inextricably linked with European prosperity."


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