Suspect Is Identified in Killing of Abortion Doctor
By JOE STUMPE and MONICA DAVEY
Copyright by The Associated Press
Published: June 1, 2009
http://www.nytimes.com/2009/06/02/us/02tiller.html?_r=1&ref=global-home
WICHITA, Kan. — The suspect in the fatal shooting of one of the nation’s only doctors to perform late-term abortions had professed an anti-government, anti-abortion philosophy in years past, some who knew him said on Monday.
Scott Roeder, 51, of Merriam, Kan., whom authorities have described as a suspect in Sunday’s fatal shooting here of George Tiller, was once a subscriber and occasional contributor to a newsletter, Prayer and Action News, said Dave Leach, an anti-abortion activist from Des Moines who runs the newsletter. Mr. Leach said that he had met Mr. Roeder once, and that Mr. Roeder had described similar views to his own on abortion.
Commenting on Dr. Tiller’s death, Mr. Leach said, “To call this a crime is too simplistic.” He added, “There is Christian scripture that would support this."
In a statement issued on Monday to The Topeka Capital-Journal, Mr. Roeder’s brother, David, said the suspect had “suffered from mental illness at various times in his life,” the newspaper reported.
“We are shocked, horrified and filled with sadness at the death of Dr. Tiller and the circumstances surrounding it that may have involved Scott Roeder,” the statement read. “We know Scott as a kind and loving son, brother and father who suffered from mental illness at various times in his life. However, none of us ever saw Scott as a person capable of or willing to take another person’s life. Our deepest regrets, prayers and sympathy go out to the Tiller family during this terrible time.”
Attorney General Eric H. Holder Jr. has ordered increased security from the United States Marshals Service for several individuals and facilities after the killing of Dr. Tiller. Administrators at some clinics also said they were reviewing their security precautions.
The 67-year-old Dr. Tiller was one of only a few doctors in the nation who performed abortions late in pregnancy, and had been a focal point for abortion opponents for decades. He was shot to death in the foyer of his longtime church as he handed out the church bulletin.
In addition to protests outside his clinic, his house and his church, Dr. Tiller, a provider of abortions for more than three decades, had once seen his clinic bombed. In 1993, an abortion opponent shot him in both arms. He was also the defendant in a series of legal challenges intended to shut down his operations, including two grand juries that were convened after citizen-led petition drives.
Lee Thompson, a lawyer who represented Dr. Tiller and knew him for 15 years, said he was conscious of security concerns, but never cowed by them. He never left the house without a pin that read, “Attitude Is Everything,” Mr. Thompson said on Monday. “He was aware of the danger, but he and his family refused to be intimidated. It was an issue, no question. But not one that drove his life.”
Mr. Thompson said Dr. Tiller took “substantial” security precautions, but declined to talk more about those precautions.
The Wichita police said there were several witnesses to the killing, but law-enforcement officials would not say what had been said, if anything, inside the foyer. Officials offered little insight into the motive, saying that they believed it was “the act of an isolated individual” but that they were also looking into “his history, his family, his associates.”
Mr. Roeder was taken into custody later in the day by law-enforcement authorities after they pulled him over about 170 miles away, on Interstate 35 near Kansas City, and was taken overnight to Wichita. Although the police had predicted that charges would be filed on Monday, the local county prosecutor said Monday morning that it would take longer.
On Sunday morning, moments after services had begun at Reformation Lutheran Church, Dr. Tiller, who was acting as an usher, was shot once with a handgun, the authorities said. The gunman pointed the weapon at two people who tried to stop him, the police said, then drove off in a powder-blue Taurus. Dr. Tiller’s wife, Jeanne, a member of the church choir, was inside the sanctuary at the time of the shooting.
Adam Watkins, 20, one of the church members, told The A.P. he was seated in the middle of the congregation when he heard a small pop at the start of the service. An usher came in and told the congregation to remain seated, and then escorted Mrs. Tiller out. “When she got to the back doors, we heard her scream,” Mr. Watkins said.
The killing of Dr. Tiller is likely to return the issue of abortion to center stage in the nation’s political debate. Until recently, President Obama, who supports abortion rights, had largely sought to avoid the debate. Last month, he confronted the issue in a commencement speech at the University of Notre Dame, an appearance that drew protests because of his views. During the speech, he appealed to each side to respect one another’s basic decency and to work together to reduce the number of unwanted pregnancies.
Mr. Obama issued a statement after Dr. Tiller’s killing, saying, “However profound our differences as Americans over difficult issues such as abortion, they cannot be resolved by heinous acts of violence.”
Advocates of abortion rights denounced the killing, saying it would send a renewed, frightening signal to others who provide abortions or work in clinics and to women who may consider abortions. Some described Dr. Tiller as one of about three doctors in the country who had, under certain circumstances, provided abortions to women in the later parts of their second trimester of pregnancy and into their third trimester of pregnancy, and said his death would mean that women, particularly in the central United States, would have few if any options in such cases.
“This is a tremendous loss on so many levels,” said Peter B. Brownlie, president of Planned Parenthood of Kansas and Mid-Missouri, who had known Dr. Tiller for years.
Opponents of abortion, including those here who have been most vociferous in their protests of Dr. Tiller and his work, also expressed outrage at the shooting and said they feared that their groups might be wrongly judged by the act.
Troy Newman, the president of Operation Rescue, an anti-abortion group based in Wichita, said he had always sought out “nonviolent” measures to challenge Dr. Tiller, including efforts in recent years to have him prosecuted for crimes or investigated by state health authorities.
“Operation Rescue has worked tirelessly on peaceful, nonviolent measures to bring him to justice through the legal system, the legislative system,” Mr. Newman said, adding, “We are pro-life, and this act was antithetical to what we believe.”
By late Sunday, Mr. Newman said, some were already suggesting that there were links between the suspect and Operation Rescue. Someone named Scott Roeder had made posts to the group’s blog in the past, Mr. Newman said, but “he is not a friend, not a contributor, not a volunteer.”
Someone named Scott Roeder posted a message on the Operation Rescue blog about Dr. Tiller that read, in part: “Tiller is the concentration camp ‘Mengele’ of our day and needs to be stopped before he and those who protect him bring judgment upon our nation.”
Dr. Tiller’s death is the first such killing of an abortion provider in this country since 1998, when Dr. Barnett Slepian was shot by a sniper in his home in the Buffalo area. Dr. Tiller was the fourth doctor in the United States who performed abortions to be killed in such circumstances since 1993, statistics from abortion rights’ groups show.
Although most of the deadly violence occurred in the 1990s, advocates said, abortion clinics and doctors have continued to be the targets of intense, sometimes threatening protests. Some said they feared that Dr. Tiller’s death might signal a return to the earlier level of violence.
Dr. Tiller had long been at the center of the abortion debate here, one that rarely seemed to quiet much in this southern Kansas city of about 358,000.
In 1993, Rachelle Shannon, from rural Oregon, shot Dr. Tiller in both arms. Two years earlier, during Operation Rescue’s “Summer of Mercy” protests, thousands of anti-abortion protesters tried to block off the clinic, the site of a bombing in 1986.
Friends of Dr. Tiller also described regular incidents of vandalism at the clinic, and a barrage of threats to him and his family — threats they say had concerned him deeply for years.
Family members, including 4 children and 10 grandchildren, issued a statement through Dr. Tiller’s lawyer, which read in part: “George dedicated his life to providing women with high-quality health care despite frequent threats and violence. We ask that he be remembered as a good husband, father and grandfather and a dedicated servant on behalf of the rights of women everywhere.”
In recent years, Dr. Tiller had also been the focus of efforts by anti-abortion groups and others — including a former state attorney general, Phill Kline — who wished to see him prosecuted for what they considered violations of state law in cases of late-term abortions.
Two grand juries, summoned by citizen-led petition drives, looked into Dr. Tiller’s practices, including questions of whether he met a state law requirement that abortions at or after 22 weeks of pregnancy be limited to circumstances where a fetus would not be viable or a woman would otherwise face “substantial and irreversible impairment of a major bodily function” — words whose interpretation were at the root of much debate.
This year, Dr. Tiller was acquitted in a case that raised questions about whether he was too closely tied to a doctor from whom he sought second opinions in abortion cases. As recently as this spring, the State Board of Healing Arts was investigating a similar complaint against him.
Joe Stumpe reported from Wichita, Kan., Monica Davey from Chicago and Neil A. Lewis from Washington.
Monday, June 1, 2009
Slimmed down Chrysler emerges
Slimmer, healthier Chrysler emerges
By Julie MacIntosh and Nicole Bullock in New York and Bernard Simon in Toronto
Copyright The Financial Times Limited 2009
Published: June 1 2009 19:10 | Last updated: June 2 2009 04:35
http://www.ft.com/cms/s/0/6807bf16-4ed2-11de-8c10-00144feabdc0.html
A slimmed down Chrysler is set to emerge from bankruptcy this week with Fiat’s chief Sergio Marchionne taking the helm in short order, said a person close to the matter.
Barack Obama, US president, praised the “quick, surgical” bankruptcy process of Chrysler. The automaker received court approval for the sale of most its operations roughly one month after it filed Chapter 11 and the night before General Motors’ petition on Monday.
A court order issued late Monday said the Chrysler sale can close on Friday.
Chrysler’s speedy trip through court is key for the US government to quell fears about the implications of a bankruptcy at its larger and more complex rival.
Chrysler’s board was expected to meet within a day or two of the closing of the transaction to appoint Mr Marchionne as chief executive. After Mr Marchionne’s appointment, Chrysler and Fiat will begin rolling out certain components of their integration plan, including alignments of the two companies’ manufacturing and engineering and an effort to export cars to Fiat dealers in Europe and Brazil.
“The period that GM is in bankruptcy is going to be another turbulent time with suppliers potentially struggling, so they need to be on the ball,” one person close to the matter said.
In the months leading up to Chrysler and GM’s filings, the companies’ executives worried that bankruptcy would drive customers away. But Chrysler insiders have been pleasantly surprised that sales of Chrysler cars have held up well, in relative terms, during the bankruptcy process.
Chrysler also enacted a heavier round of dealer closures than some insiders had expected.
“Chrysler is going to come out with not only a smaller dealer network but one that is much healthier,” because Chrysler has kept its manufacturing plants closed and has let its remaining dealers whittle down their inventories, said one person close to the matter. Mr Obama said on Monday that Chrysler sales were higher in May than April. However, the carmaker has offered unusually generous discounts and other incentives.
Furthermore, Chrysler has refused to buy back unsold cars and many of the 800 Chrysler, Dodge and Jeep dealers whose franchises will be revoked next week, have sought buyers for their inventory at bargain-basement prices.
On Sunday, Chrysler won court approval to sell most of its assets to a new Chrysler company that will be owned by the United Auto Workers union, Fiat and the governments of the US and Canada. Chrysler hopes to close the deal by Wednesday. A group of pension funds from Indiana, who own secured loans and oppose the transaction, plan to appeal. That could delay the timeline.
By Julie MacIntosh and Nicole Bullock in New York and Bernard Simon in Toronto
Copyright The Financial Times Limited 2009
Published: June 1 2009 19:10 | Last updated: June 2 2009 04:35
http://www.ft.com/cms/s/0/6807bf16-4ed2-11de-8c10-00144feabdc0.html
A slimmed down Chrysler is set to emerge from bankruptcy this week with Fiat’s chief Sergio Marchionne taking the helm in short order, said a person close to the matter.
Barack Obama, US president, praised the “quick, surgical” bankruptcy process of Chrysler. The automaker received court approval for the sale of most its operations roughly one month after it filed Chapter 11 and the night before General Motors’ petition on Monday.
A court order issued late Monday said the Chrysler sale can close on Friday.
Chrysler’s speedy trip through court is key for the US government to quell fears about the implications of a bankruptcy at its larger and more complex rival.
Chrysler’s board was expected to meet within a day or two of the closing of the transaction to appoint Mr Marchionne as chief executive. After Mr Marchionne’s appointment, Chrysler and Fiat will begin rolling out certain components of their integration plan, including alignments of the two companies’ manufacturing and engineering and an effort to export cars to Fiat dealers in Europe and Brazil.
“The period that GM is in bankruptcy is going to be another turbulent time with suppliers potentially struggling, so they need to be on the ball,” one person close to the matter said.
In the months leading up to Chrysler and GM’s filings, the companies’ executives worried that bankruptcy would drive customers away. But Chrysler insiders have been pleasantly surprised that sales of Chrysler cars have held up well, in relative terms, during the bankruptcy process.
Chrysler also enacted a heavier round of dealer closures than some insiders had expected.
“Chrysler is going to come out with not only a smaller dealer network but one that is much healthier,” because Chrysler has kept its manufacturing plants closed and has let its remaining dealers whittle down their inventories, said one person close to the matter. Mr Obama said on Monday that Chrysler sales were higher in May than April. However, the carmaker has offered unusually generous discounts and other incentives.
Furthermore, Chrysler has refused to buy back unsold cars and many of the 800 Chrysler, Dodge and Jeep dealers whose franchises will be revoked next week, have sought buyers for their inventory at bargain-basement prices.
On Sunday, Chrysler won court approval to sell most of its assets to a new Chrysler company that will be owned by the United Auto Workers union, Fiat and the governments of the US and Canada. Chrysler hopes to close the deal by Wednesday. A group of pension funds from Indiana, who own secured loans and oppose the transaction, plan to appeal. That could delay the timeline.
Obama reassures on US role in GM - Washington set to acquire 60% stake
Obama reassures on US role in GM - Washington set to acquire 60% stake
By Bernard Simon in Toronto, John Reed in London, Tom Braithwaite in Washington, and Julie MacIntosh and Alan Rappeport in New York
Copyright The Financial Times Limited 2009
Published: June 1 2009 13:04 | Last updated: June 1 2009 18:08
http://www.ft.com/cms/s/0/431feb02-4ea4-11de-8c10-00144feabdc0.html
President Barack Obama sought on Monday to quell unease over Washington’s widening role in the auto industry by promising that his administration would refrain from exercising its pending majority stakes in General Motors and Chrysler in all but the most critical decisions.
Mr Obama’s pledge came as GM reassured customers, suppliers and others that it would continue business as normal after filing for Chapter 11 bankruptcy protection.
Washington is set to acquire a 60 per cent stake in GM and 55 per cent of Chrysler, its smaller rival which is set to emerge from its court-supervised restructuring within the next day or two in an alliance with Italy’s Fiat. The Canadian government will own 12.5 per cent of GM and a small piece of Chrysler.
Multimedia feature
General Motors - a giant humbled
Mr Obama stressed that the US government was a “reluctant” shareholder in GM. “The federal government will refrain from exercising its rights as a shareholder in all but the most fundamental corporate decisions,” he said.
"When a difficult decision has to be made on matters like where to open a new plant or what type of new car to make, the new GM, not the United States government, will make that decision," he added.
Mr Obama also celebrated the restructuring of Chrysler, noting its 31-day stay in Chapter 11 was “an outcome dramatically better than what appeared likely when this process began”.
Shortly before Mr Obama spoke, Tom Donohue, US Chamber of Commerce president, expressed misgivings about the potential for government and union influence at GM and Chrysler “in ways that could jeopardise [their] chances for survival, put politics and special interests above sound business strategy, and disrupt our nation’s trading relationships.”
The administration spelt out a number of principles for managing its stakes in private-sector businesses. They include a commitment that no government official will serve as a director or employee of a company in which Washington has an equity stake.
GM said that it expected to emerge from Chapter 11 sometime in August as a much leaner company. Following Chrysler’s example, it will split into “old” and “new” companies under section 363 of the US bankruptcy code.
The US and Canadian government have agreed to underwrite warranties on GM vehicles while the company is in bankruptcy protection. Fritz Henderson, GM’s chief executive, made a plea to customers who had been disappointed by GM vehicles in the past: “Give us another chance.”
He also said that GM’s bankruptcy filing today had “been exceptionally difficult both personally and professionally,” although he also described its as “a new beginning for GM.”
GM’s boss emphasised the importance of speed as GM goes through bankruptcy and a 363 sale. “There’s always a risk, but we are confident we will move fast,” he said.
GM on Monday named Al Koch, a turnaround expert with the consultancy AlixPartners, as its Chief Restructuring Officer, charged with overseeing the winding down of the “old GM.”
The carmaker also said that it had sufficient funding to ensure an uninterrupted supply of goods and services. It plans to retain the vast majority of its 4,000 suppliers, according to a person familiar with the situation.
Moody’s said that it did not expect that that GM’s filing would lead to “material” ratings downgrades for suppliers, dealers or car rental operators. Parts makers such as Robert Bosch, Lear and Magna International are among GM’s biggest creditors.
Delphi, GM’s biggest supplier, said on Monday that it had reached a deal to emerge from almost four years in Chapter 11 protection under the control of Platinum Equity, a California-based turnaround group.
GM’s bankruptcy filing applies only to its US operations. GM Europe said on Monday that its dealers, warranty and customer support operations were unaffected.
Speaking on Monday, Mr Henderson hinted at the precarious financial position Opel/ Vauxhall was in late last week, as GM and Germany’s government scrambled to line up E1.5bn of emerrgency bridge financing to finance a spinoff of GM’s European arm.
“It was very important for us to get clarity around Opel prior to today,” he said. “Had we not done that, we weren’t entirely sure what would happen.”
The new GM aims to break even at US sales of 10m cars and light trucks a year, compared with 16m now. Sales so far this year have run at about 9.5m units.
The company that emerges from Chapter 11 will have only about $17bn of debt on its balance sheet, down from $80bn now, excluding $33bn in loans from the US and Canadian governments to finance its stay in bankruptcy.
Asked how long he thought the government would be a shareholder in GM, Mr Henderson said it was “a question of years, not months.”
By Bernard Simon in Toronto, John Reed in London, Tom Braithwaite in Washington, and Julie MacIntosh and Alan Rappeport in New York
Copyright The Financial Times Limited 2009
Published: June 1 2009 13:04 | Last updated: June 1 2009 18:08
http://www.ft.com/cms/s/0/431feb02-4ea4-11de-8c10-00144feabdc0.html
President Barack Obama sought on Monday to quell unease over Washington’s widening role in the auto industry by promising that his administration would refrain from exercising its pending majority stakes in General Motors and Chrysler in all but the most critical decisions.
Mr Obama’s pledge came as GM reassured customers, suppliers and others that it would continue business as normal after filing for Chapter 11 bankruptcy protection.
Washington is set to acquire a 60 per cent stake in GM and 55 per cent of Chrysler, its smaller rival which is set to emerge from its court-supervised restructuring within the next day or two in an alliance with Italy’s Fiat. The Canadian government will own 12.5 per cent of GM and a small piece of Chrysler.
Multimedia feature
General Motors - a giant humbled
Mr Obama stressed that the US government was a “reluctant” shareholder in GM. “The federal government will refrain from exercising its rights as a shareholder in all but the most fundamental corporate decisions,” he said.
"When a difficult decision has to be made on matters like where to open a new plant or what type of new car to make, the new GM, not the United States government, will make that decision," he added.
Mr Obama also celebrated the restructuring of Chrysler, noting its 31-day stay in Chapter 11 was “an outcome dramatically better than what appeared likely when this process began”.
Shortly before Mr Obama spoke, Tom Donohue, US Chamber of Commerce president, expressed misgivings about the potential for government and union influence at GM and Chrysler “in ways that could jeopardise [their] chances for survival, put politics and special interests above sound business strategy, and disrupt our nation’s trading relationships.”
The administration spelt out a number of principles for managing its stakes in private-sector businesses. They include a commitment that no government official will serve as a director or employee of a company in which Washington has an equity stake.
GM said that it expected to emerge from Chapter 11 sometime in August as a much leaner company. Following Chrysler’s example, it will split into “old” and “new” companies under section 363 of the US bankruptcy code.
The US and Canadian government have agreed to underwrite warranties on GM vehicles while the company is in bankruptcy protection. Fritz Henderson, GM’s chief executive, made a plea to customers who had been disappointed by GM vehicles in the past: “Give us another chance.”
He also said that GM’s bankruptcy filing today had “been exceptionally difficult both personally and professionally,” although he also described its as “a new beginning for GM.”
GM’s boss emphasised the importance of speed as GM goes through bankruptcy and a 363 sale. “There’s always a risk, but we are confident we will move fast,” he said.
GM on Monday named Al Koch, a turnaround expert with the consultancy AlixPartners, as its Chief Restructuring Officer, charged with overseeing the winding down of the “old GM.”
The carmaker also said that it had sufficient funding to ensure an uninterrupted supply of goods and services. It plans to retain the vast majority of its 4,000 suppliers, according to a person familiar with the situation.
Moody’s said that it did not expect that that GM’s filing would lead to “material” ratings downgrades for suppliers, dealers or car rental operators. Parts makers such as Robert Bosch, Lear and Magna International are among GM’s biggest creditors.
Delphi, GM’s biggest supplier, said on Monday that it had reached a deal to emerge from almost four years in Chapter 11 protection under the control of Platinum Equity, a California-based turnaround group.
GM’s bankruptcy filing applies only to its US operations. GM Europe said on Monday that its dealers, warranty and customer support operations were unaffected.
Speaking on Monday, Mr Henderson hinted at the precarious financial position Opel/ Vauxhall was in late last week, as GM and Germany’s government scrambled to line up E1.5bn of emerrgency bridge financing to finance a spinoff of GM’s European arm.
“It was very important for us to get clarity around Opel prior to today,” he said. “Had we not done that, we weren’t entirely sure what would happen.”
The new GM aims to break even at US sales of 10m cars and light trucks a year, compared with 16m now. Sales so far this year have run at about 9.5m units.
The company that emerges from Chapter 11 will have only about $17bn of debt on its balance sheet, down from $80bn now, excluding $33bn in loans from the US and Canadian governments to finance its stay in bankruptcy.
Asked how long he thought the government would be a shareholder in GM, Mr Henderson said it was “a question of years, not months.”
US personal incomes show surprise rise - Savings rate hits 14-year high
US personal incomes show surprise rise - Savings rate hits 14-year high
By Alan Rappeport in New York
Copyright The Financial Times Limited 2009
Published: June 1 2009 14:05 | Last updated: June 1 2009 15:34
http://www.ft.com/cms/s/0/3cac93f8-4eac-11de-8c10-00144feabdc0.html
US consumers curbed their spending for the second month running in April, in spite of the first rise in income this year, as they continue to cope with the recession and fears of more job cuts.
Personal consumption expenditure fell by 0.1 per cent or $5.4bn last month, less than economists expected and a smaller fall than the previous month’s 0.3 per cent.
Incomes rose for the first time in four months in April, increasing by 0.5 per cent, or $58.2bn, and dashing predictions of another drop. Much of the increase, which was the largest in 11 months, was due to lower taxes and benefits from government stimulus payments.
The commerce department’s closely-watched gauge of prices rose by 0.1 per cent in April, following a slight dip in March. Excluding food and energy, prices rose by 0.3 per cent after rising by 0.2 per cent for two consecutive months. On the year the index was up by 1.9 per cent.
Meanwhile the savings rate, which is measured as the proportion of income left after spending and taxes, rose from a revised 4.5 per cent in March to 5.7 per cent in April, a 14-year high. Economists predict that the savings rate could reach 8 per cent as household wealth has collapsed.
“US rebalancing continues and the quicker the adjustment the more promising are the prospects for consumer spending in the longer-term,” said Alan Ruskin, strategist at RBS Greenwich Capital.
Also offering promise on Monday were figures showing that US manufacturing is shrinking at a slower pace than before, adding to hopes that the worst of the recession is over. The Institute for Supply Management’s factory index rose to 42.8 per cent last month from 40.1 per cent in May, as new orders grew for the first time since November 2007.
”While employment and inventories continue to decline at a rapid rate and the sector continued to contract during the month, there are signs of improvement,” said Norbert Ore, ISM chairman.
Export orders also jumped in May, rising to the highest level since the collapse of Lehman Brothers last September.
“ISM is being lifted partly by a catching-up or rebound after the post-Lehman plunge, during which time companies seem to have slashed their spending more deeply than was sustainable, and partly by an unfreezing of world trade,” said Ian Sheperdson, chief US economist at High Frequency Economics.
Separately on Monday, commerce department figures showed that US construction spending unexpectedly rose in April on the back of stronger investment commercial construction. Construction spending grew by 0.8 per cent to $968.7bn in the month, but is off by 10.7 per cent from the same period a year ago.
Private construction climbed by 1.4 per cent in April, while public construction slipped by 0.6 per cent. Residential construction rose by 0.7 per cent, lifting hopes that the stricken US housing market could be starting to bottom.
By Alan Rappeport in New York
Copyright The Financial Times Limited 2009
Published: June 1 2009 14:05 | Last updated: June 1 2009 15:34
http://www.ft.com/cms/s/0/3cac93f8-4eac-11de-8c10-00144feabdc0.html
US consumers curbed their spending for the second month running in April, in spite of the first rise in income this year, as they continue to cope with the recession and fears of more job cuts.
Personal consumption expenditure fell by 0.1 per cent or $5.4bn last month, less than economists expected and a smaller fall than the previous month’s 0.3 per cent.
Incomes rose for the first time in four months in April, increasing by 0.5 per cent, or $58.2bn, and dashing predictions of another drop. Much of the increase, which was the largest in 11 months, was due to lower taxes and benefits from government stimulus payments.
The commerce department’s closely-watched gauge of prices rose by 0.1 per cent in April, following a slight dip in March. Excluding food and energy, prices rose by 0.3 per cent after rising by 0.2 per cent for two consecutive months. On the year the index was up by 1.9 per cent.
Meanwhile the savings rate, which is measured as the proportion of income left after spending and taxes, rose from a revised 4.5 per cent in March to 5.7 per cent in April, a 14-year high. Economists predict that the savings rate could reach 8 per cent as household wealth has collapsed.
“US rebalancing continues and the quicker the adjustment the more promising are the prospects for consumer spending in the longer-term,” said Alan Ruskin, strategist at RBS Greenwich Capital.
Also offering promise on Monday were figures showing that US manufacturing is shrinking at a slower pace than before, adding to hopes that the worst of the recession is over. The Institute for Supply Management’s factory index rose to 42.8 per cent last month from 40.1 per cent in May, as new orders grew for the first time since November 2007.
”While employment and inventories continue to decline at a rapid rate and the sector continued to contract during the month, there are signs of improvement,” said Norbert Ore, ISM chairman.
Export orders also jumped in May, rising to the highest level since the collapse of Lehman Brothers last September.
“ISM is being lifted partly by a catching-up or rebound after the post-Lehman plunge, during which time companies seem to have slashed their spending more deeply than was sustainable, and partly by an unfreezing of world trade,” said Ian Sheperdson, chief US economist at High Frequency Economics.
Separately on Monday, commerce department figures showed that US construction spending unexpectedly rose in April on the back of stronger investment commercial construction. Construction spending grew by 0.8 per cent to $968.7bn in the month, but is off by 10.7 per cent from the same period a year ago.
Private construction climbed by 1.4 per cent in April, while public construction slipped by 0.6 per cent. Residential construction rose by 0.7 per cent, lifting hopes that the stricken US housing market could be starting to bottom.
Air France plane missing with 228 aboard
Air France plane missing with 228 aboard - Flight en route to Paris from Rio de Janeiro
By Ben Hall in Paris, Kevin Done in London and agencies
Copyright The Financial Times Limited 2009
Published: June 1 2009 11:58 | Last updated: June 1 2009 16:46
http://www.ft.com/cms/s/0/ed0588a4-4e98-11de-8c10-00144feabdc0.html
An Air France passenger jet with 228 people on board is believed to have crashed into the Atlantic on Monday en route from Brazil to Paris after suffering an electrical breakdown during a heavy thunderstorm.
Air France said the Airbus A330 jet flew through “severe turbulence” four hours into its flight and far off the Brazilian coast before sending out an automatic warning of an “electrical fault”. It was the last contact with the aircraft.
“It is probably a combination of circumstances that could have led to the crash,” said François Brousse, the company’s communications director, adding that it could have been hit by lightning.
The French government sent three airforce reconnaissance planes from a base in Dakar, Senegal and a naval vessel from the Gulf Guinea to search for the crash site. Brazilian aircraft were also scrambled to join the search. But the area where the Air France jet may have come down is vast.
The accident is the worst in Air France’s 75-year history and the first since a New York-bound Concorde crashed shortly after take-off from Roissy Charles de Gaulle in 2000, killing 109 people.
The Airbus A330, a twin-engined, wide-bodied jet, took off from Rio de Janeiro at 19.03 local time (22.03 GMT) on Sunday and was due to land at Roissy at 11.10 local time yesterday.
The Brazilian air force said that when the plane left its radar area at 0148 GMT it had been flying normally at an altitude of 35,000 feet and at 453 knots. It failed to make contact at the next attempt half an hour later at 0220. Air traffic controllers on both sides of the Atlantic tried in vain to re-establish contact with the aircraft.
The twin-engined plane was carrying 216 passengers, three flight crew and nine cabin staff.
Most of those on board were Brazilian, 40 to 60 were French and 25 German, according to Jean-Louis Borloo, the French transport minister who called the crash “an awful tragedy”.
Air France said relatives of people travelling on board flight AF 447 were being taken care of at Roissy Charles de Gaulle. President Nicolas Sarkozy visited a crisis centre set up at the airport.
Air France said the A330-200 entered service in April 2005 and had completed 18,870 flight hours. It had last been in heavy maintenance on April 16. It was powered by two General Electric CF6-80E engines.
The Airbus A330-200 is the most successful long-haul aircraft built by the European aircraft maker. As of April Airbus had taken 557 orders for the twin-engined aircraft and had delivered 343. According to Airbus there were 341 in operation around the world.
It is used typically on medium capacity long-haul routes and according to Airbus typically has around 250 seats in a three-class configuration with first, business and economy cabins, and as many as 290 in two-class business and economy cabins.
By Ben Hall in Paris, Kevin Done in London and agencies
Copyright The Financial Times Limited 2009
Published: June 1 2009 11:58 | Last updated: June 1 2009 16:46
http://www.ft.com/cms/s/0/ed0588a4-4e98-11de-8c10-00144feabdc0.html
An Air France passenger jet with 228 people on board is believed to have crashed into the Atlantic on Monday en route from Brazil to Paris after suffering an electrical breakdown during a heavy thunderstorm.
Air France said the Airbus A330 jet flew through “severe turbulence” four hours into its flight and far off the Brazilian coast before sending out an automatic warning of an “electrical fault”. It was the last contact with the aircraft.
“It is probably a combination of circumstances that could have led to the crash,” said François Brousse, the company’s communications director, adding that it could have been hit by lightning.
The French government sent three airforce reconnaissance planes from a base in Dakar, Senegal and a naval vessel from the Gulf Guinea to search for the crash site. Brazilian aircraft were also scrambled to join the search. But the area where the Air France jet may have come down is vast.
The accident is the worst in Air France’s 75-year history and the first since a New York-bound Concorde crashed shortly after take-off from Roissy Charles de Gaulle in 2000, killing 109 people.
The Airbus A330, a twin-engined, wide-bodied jet, took off from Rio de Janeiro at 19.03 local time (22.03 GMT) on Sunday and was due to land at Roissy at 11.10 local time yesterday.
The Brazilian air force said that when the plane left its radar area at 0148 GMT it had been flying normally at an altitude of 35,000 feet and at 453 knots. It failed to make contact at the next attempt half an hour later at 0220. Air traffic controllers on both sides of the Atlantic tried in vain to re-establish contact with the aircraft.
The twin-engined plane was carrying 216 passengers, three flight crew and nine cabin staff.
Most of those on board were Brazilian, 40 to 60 were French and 25 German, according to Jean-Louis Borloo, the French transport minister who called the crash “an awful tragedy”.
Air France said relatives of people travelling on board flight AF 447 were being taken care of at Roissy Charles de Gaulle. President Nicolas Sarkozy visited a crisis centre set up at the airport.
Air France said the A330-200 entered service in April 2005 and had completed 18,870 flight hours. It had last been in heavy maintenance on April 16. It was powered by two General Electric CF6-80E engines.
The Airbus A330-200 is the most successful long-haul aircraft built by the European aircraft maker. As of April Airbus had taken 557 orders for the twin-engined aircraft and had delivered 343. According to Airbus there were 341 in operation around the world.
It is used typically on medium capacity long-haul routes and according to Airbus typically has around 250 seats in a three-class configuration with first, business and economy cabins, and as many as 290 in two-class business and economy cabins.
US stocks rally on encouraging data - Cisco and Travelers surge on Dow addition
US stocks rally on encouraging data - Cisco and Travelers surge on Dow addition
By Anuj Gangahar in New York
Copyright The Financial Times Limited 2009
Published: June 1 2009 14:14 | Last updated: June 1 2009 17:54
http://www.ft.com/cms/s/0/9078b782-4eac-11de-8c10-00144feabdc0.html
US stocks climbed sharply on Monday as investors took the General Motors bankruptcy filing in their stride and focused on encouraging economic data.
Before the opening bell, General Motors filed for bankruptcy and a judge ruled in favour of a sale of most of Chrysler’s assets to Italian carmaker Fiat.
President Barack Obama and GM’s chief executive Fritz Henderson sought to reassure workers, suppliers, dealers and car buyers that a leaner, reinvigorated GM would emerge quickly from a court-supervised restructuring.
GM’s bankruptcy filing occurred just hours after a US bankruptcy court judge in New York approved Chrysler’s sale of most of its assets to Fiat, the Italian carmaker.
Shares in Ford rose 5.7 per cent at $6.08 after reports said it planned to increase production in the third quarter in a bid to gain market share while its rivals were bogged down in restructuring. GM shares were suspended on the New York Stock Exchange following its bankruptcy filing.
Stocks were boosted by US manufacturing data, which was better than expected and suggested the economy was bottoming out. Separate data showed the income of Americans rose unexpectedly in April. Personal income rose at a seasonally-adjusted rate of 0.5 per cent compared with the month before, according to the Commerce Department. Income fell a revised 0.2 per cent in March from an original estimate of a fall of 0.3 per cent. Personal consumption in April fell 0.1 per cent compared with March.
At midday in New York the S&P 500 index was 2.6 per cent higher at 942.88 while the Nasdaq Composite was 2.8 per cent ahead at 1,823.83. The Dow Jones Industrial Average was 2.5 per cent higher at 8,710.45.
Analysts at Schaeffer’s Investment Research said the first five months of 2009 had behaved very similarly to the first five months of 2008, pointing out that the beginning of 2008 also featured a weak market that led to a bull market rally.
“Now with June upon us, investors need to pay particular attention. June has historically been a weak month for the market and the S&P may face some risks,” they said.
Monday’s rally came as Tim Geithner, the US Treasury secretary, arrived in China on his maiden visit, with calls for China to make its currency more flexible in return for fiscal reforms by the US.
David Buik of BGC Partners, said it would be interesting to see whether there was any pullback in equities allowing investors to take stock of the situation in the next day or two.
“Mr Geithner’s visit to China is absolutely key. The US’s borrowing requirement is breathtaking in its magnitude. He will have to sweet talk the Chinese into believing that this debt can be serviced,” he said.
Dow Jones said that GM and Citigroup would be replaced in the Dow Jones Industrial Average by technology group Cisco Systems and insurer Travelers, respectively.
Shares in both Cisco and Travelers, which was spun off from Citigroup in 2002, were sharply higher. Cisco shares climbed 4.5 per cent higher to $19.33 while Travelers shares were up 4.5 per cent at $42.49.
Oil climbed by more than $2 to a seven-month high, above $68 a barrel and energy companies gained strongly.
Exxon Mobil climbed 2.6 per cent at $71.16 and Chevron 3.2 per cent to $68.81, boosted by the strong gains in oil. The S&P energy index was up 3.6 per cent while the consumer discretionary index rose 4.4 per cent and the industrial index rose 4.5 per cent.
The financial sector was in focus as Goldman Sachs activated plans to sell up to $1.9bn worth of shares in Industrial and Commercial Bank of China in the latest high-profile divestment of stock in a mainland lender.
The S&P financial index rose 2.1 per cent while the investment banking index was 1.3 per cent higher.
The technology sector also gained although the gains lagged the wider market. Shares in Google were up 2 per cent at $425.95 and Microsoft was 1.8 per cent firmer at $21.24. Microsoft and Sony are this week launching a video-game offensive against Nintendo, the clear leader in console sales.
By Anuj Gangahar in New York
Copyright The Financial Times Limited 2009
Published: June 1 2009 14:14 | Last updated: June 1 2009 17:54
http://www.ft.com/cms/s/0/9078b782-4eac-11de-8c10-00144feabdc0.html
US stocks climbed sharply on Monday as investors took the General Motors bankruptcy filing in their stride and focused on encouraging economic data.
Before the opening bell, General Motors filed for bankruptcy and a judge ruled in favour of a sale of most of Chrysler’s assets to Italian carmaker Fiat.
President Barack Obama and GM’s chief executive Fritz Henderson sought to reassure workers, suppliers, dealers and car buyers that a leaner, reinvigorated GM would emerge quickly from a court-supervised restructuring.
GM’s bankruptcy filing occurred just hours after a US bankruptcy court judge in New York approved Chrysler’s sale of most of its assets to Fiat, the Italian carmaker.
Shares in Ford rose 5.7 per cent at $6.08 after reports said it planned to increase production in the third quarter in a bid to gain market share while its rivals were bogged down in restructuring. GM shares were suspended on the New York Stock Exchange following its bankruptcy filing.
Stocks were boosted by US manufacturing data, which was better than expected and suggested the economy was bottoming out. Separate data showed the income of Americans rose unexpectedly in April. Personal income rose at a seasonally-adjusted rate of 0.5 per cent compared with the month before, according to the Commerce Department. Income fell a revised 0.2 per cent in March from an original estimate of a fall of 0.3 per cent. Personal consumption in April fell 0.1 per cent compared with March.
At midday in New York the S&P 500 index was 2.6 per cent higher at 942.88 while the Nasdaq Composite was 2.8 per cent ahead at 1,823.83. The Dow Jones Industrial Average was 2.5 per cent higher at 8,710.45.
Analysts at Schaeffer’s Investment Research said the first five months of 2009 had behaved very similarly to the first five months of 2008, pointing out that the beginning of 2008 also featured a weak market that led to a bull market rally.
“Now with June upon us, investors need to pay particular attention. June has historically been a weak month for the market and the S&P may face some risks,” they said.
Monday’s rally came as Tim Geithner, the US Treasury secretary, arrived in China on his maiden visit, with calls for China to make its currency more flexible in return for fiscal reforms by the US.
David Buik of BGC Partners, said it would be interesting to see whether there was any pullback in equities allowing investors to take stock of the situation in the next day or two.
“Mr Geithner’s visit to China is absolutely key. The US’s borrowing requirement is breathtaking in its magnitude. He will have to sweet talk the Chinese into believing that this debt can be serviced,” he said.
Dow Jones said that GM and Citigroup would be replaced in the Dow Jones Industrial Average by technology group Cisco Systems and insurer Travelers, respectively.
Shares in both Cisco and Travelers, which was spun off from Citigroup in 2002, were sharply higher. Cisco shares climbed 4.5 per cent higher to $19.33 while Travelers shares were up 4.5 per cent at $42.49.
Oil climbed by more than $2 to a seven-month high, above $68 a barrel and energy companies gained strongly.
Exxon Mobil climbed 2.6 per cent at $71.16 and Chevron 3.2 per cent to $68.81, boosted by the strong gains in oil. The S&P energy index was up 3.6 per cent while the consumer discretionary index rose 4.4 per cent and the industrial index rose 4.5 per cent.
The financial sector was in focus as Goldman Sachs activated plans to sell up to $1.9bn worth of shares in Industrial and Commercial Bank of China in the latest high-profile divestment of stock in a mainland lender.
The S&P financial index rose 2.1 per cent while the investment banking index was 1.3 per cent higher.
The technology sector also gained although the gains lagged the wider market. Shares in Google were up 2 per cent at $425.95 and Microsoft was 1.8 per cent firmer at $21.24. Microsoft and Sony are this week launching a video-game offensive against Nintendo, the clear leader in console sales.
Homophobic alderman? Possibility stirs rage
Homophobic alderman? Possibility stirs rage
BY LAURA WASHINGTON
Copyright by The Chicago Sun-Times
June 1, 2009
http://www.suntimes.com/news/washington/1600747,CST-EDT-laura01.article
The City Council may soon have its first openly homophobic alderman. If Mayor Daley decides to appoint the Rev. Wilfredo De Jesus to replace 26th Ward Ald. Billy Ocasio, Chicago's GLBT activists might go ballistic. Then again, they might just punt.
Ocasio, who has resigned his seat and has signed on as a top adviser to Gov. Quinn, has asked Daley to appoint De Jesus, senior pastor of New Life Covenant Ministries, to replace him in the Humboldt Park ward.
De Jesus, an influential evangelical minister with 4,000 church members, has taken stands and uttered words that infuriate many in the city's gay, lesbian, bisexual and transgender community.
His megachurch belongs to the Assemblies of God sect, which believes that "homosexual behavior is a sin because it is contrary to God's created order for the family and human relationships."
De Jesus opposed the proposed Pride Campus, a high school that would cater to GLBT students, telling the Booster newspaper, "What about that girl who is a virgin, who is being harassed by lesbians and guys to have sex, and yet you're going to build a gay school?" he said. "It's not fair."
The possible appointment has unleashed a torrent of behind-the-scenes hubbub and hand-wringing. GLBT activists and leaders are pushing back.
"The mayor has been made aware of the concerns of our community," said 44th Ward Ald. Tom Tunney.
As the city's only openly gay alderman, Tunney said, it is his "responsibility to make sure that the mayor knows about the concerns," which he has shared with Daley's staff.
"I think some of his rhetoric is pretty hateful," Tunney said, adding, "Our community feels pretty strongly about it."
Carlos Mock, a Puerto Rican gay activist and Uptown resident, penned one of several angry letters published in the May 27 Windy City Times.
"I am appalled and completely oppose that such a person could represent me in any city business," wrote Mock, a board member of Equality Illinois, a GLBT rights group. "I encourage every pro-choice and pro-gay member of the 26th Ward to write to Mayor Daley and complain."
On Friday Rick Garcia, Equality Illinois' director of public policy, wrote that "we have serious concerns" about De Jesus. In an interview, Garcia told me, "We are very inclined to oppose his appointment because of his public statements about gay people, our civil rights and our relationships."
De Jesus denies that he is a homophobe and says his personal and religious beliefs won't impact his public service.
"As an alderman, my job [would be] to uphold the Constitution of the United States," he told me Thursday. "It is a separate issue, and I want it to stay that way. I continue to say that for the 26th Ward, I will support and fight for everyone's rights, whether they be gay or straight."
Ocasio and others defend De Jesus as a champion for children and families, the homeless and others among the disadvantaged.
Daley "has received numerous calls and letters" about the aldermanic vacancy, spokesman Lance Lewis acknowledged, but has made no decision.
We'll see.
De Jesus, 44, is a mayoral appointee to the Chicago Zoning Board of Appeals with City Hall clout. The GLBT community relies on Daley for city funding, endorsement and legitimacy. They have to do a delicate dance, criticizing the mayor on pivotal issues, while retaining their access to City Hall.
When decision time comes, I'm betting the GLBT honchos are more likely to stroke, than poke, the mayor (with a sharp stick).
Whomever the mayor picks, the City Council confirms. That has happened more than 30 times during the Daley reign. Tunney himself was a Daley appointee. Would he vote for De Jesus? I asked.
"I haven't made that decision," Tunney said. "I hope I don't have to make that decision."
BY LAURA WASHINGTON
Copyright by The Chicago Sun-Times
June 1, 2009
http://www.suntimes.com/news/washington/1600747,CST-EDT-laura01.article
The City Council may soon have its first openly homophobic alderman. If Mayor Daley decides to appoint the Rev. Wilfredo De Jesus to replace 26th Ward Ald. Billy Ocasio, Chicago's GLBT activists might go ballistic. Then again, they might just punt.
Ocasio, who has resigned his seat and has signed on as a top adviser to Gov. Quinn, has asked Daley to appoint De Jesus, senior pastor of New Life Covenant Ministries, to replace him in the Humboldt Park ward.
De Jesus, an influential evangelical minister with 4,000 church members, has taken stands and uttered words that infuriate many in the city's gay, lesbian, bisexual and transgender community.
His megachurch belongs to the Assemblies of God sect, which believes that "homosexual behavior is a sin because it is contrary to God's created order for the family and human relationships."
De Jesus opposed the proposed Pride Campus, a high school that would cater to GLBT students, telling the Booster newspaper, "What about that girl who is a virgin, who is being harassed by lesbians and guys to have sex, and yet you're going to build a gay school?" he said. "It's not fair."
The possible appointment has unleashed a torrent of behind-the-scenes hubbub and hand-wringing. GLBT activists and leaders are pushing back.
"The mayor has been made aware of the concerns of our community," said 44th Ward Ald. Tom Tunney.
As the city's only openly gay alderman, Tunney said, it is his "responsibility to make sure that the mayor knows about the concerns," which he has shared with Daley's staff.
"I think some of his rhetoric is pretty hateful," Tunney said, adding, "Our community feels pretty strongly about it."
Carlos Mock, a Puerto Rican gay activist and Uptown resident, penned one of several angry letters published in the May 27 Windy City Times.
"I am appalled and completely oppose that such a person could represent me in any city business," wrote Mock, a board member of Equality Illinois, a GLBT rights group. "I encourage every pro-choice and pro-gay member of the 26th Ward to write to Mayor Daley and complain."
On Friday Rick Garcia, Equality Illinois' director of public policy, wrote that "we have serious concerns" about De Jesus. In an interview, Garcia told me, "We are very inclined to oppose his appointment because of his public statements about gay people, our civil rights and our relationships."
De Jesus denies that he is a homophobe and says his personal and religious beliefs won't impact his public service.
"As an alderman, my job [would be] to uphold the Constitution of the United States," he told me Thursday. "It is a separate issue, and I want it to stay that way. I continue to say that for the 26th Ward, I will support and fight for everyone's rights, whether they be gay or straight."
Ocasio and others defend De Jesus as a champion for children and families, the homeless and others among the disadvantaged.
Daley "has received numerous calls and letters" about the aldermanic vacancy, spokesman Lance Lewis acknowledged, but has made no decision.
We'll see.
De Jesus, 44, is a mayoral appointee to the Chicago Zoning Board of Appeals with City Hall clout. The GLBT community relies on Daley for city funding, endorsement and legitimacy. They have to do a delicate dance, criticizing the mayor on pivotal issues, while retaining their access to City Hall.
When decision time comes, I'm betting the GLBT honchos are more likely to stroke, than poke, the mayor (with a sharp stick).
Whomever the mayor picks, the City Council confirms. That has happened more than 30 times during the Daley reign. Tunney himself was a Daley appointee. Would he vote for De Jesus? I asked.
"I haven't made that decision," Tunney said. "I hope I don't have to make that decision."
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