MiamiHerald.com HOTEL COPIES: A copy of The Miami Herald will be delivered to your room. A credit of US$0.25 will be posted to your account if delivery is declined.
SATURDAY, JULY 23, 2011
108TH YEAR I ÂŠ2011 THE MIAMI HERALD
Deadly attacks rip through Norway youths at a camp where the prime minister had been scheduled to speak Saturday ran in terror and even tried swimming to safety as the gunman ďŹ red. Emilie Bersaas, identiďŹ ed by Sky News television as one of the youths on the island, said she ran inside a school building and hid under a bed. â€œAt one point the shooting was very, very close [to] the building. I think actually it actually hit the building one time, and the people in the next room screamed very loud. I laid under the bed for two hours and then the police smashed a window and came in,â€? she said. â€œIt seems kind of unreal, especially in Norway. This is not something that could happen here.â€? Police said seven people died in the blast, and another 9 or 10 people were killed at the camp, which was organized by the youth wing of the ruling Labor Party. Acting national Police Chief Sveinung
BY NILS MYKLEBOST Associated Press
Children play in front of an abandoned building in Havana. Empty lots dot Havanaâ€™s seaside Malecon boulevard as once-stately mansions regularly collapse following heavy rains.
Cuba lifting housing market taboo
BY PETER ORSI
HAVANA â€” Each morning before the sun rises too high, Cubans gather at a shaded corner in central Havana, mingling as though at a cocktail party. The icebreaker is always the same: â€œWhat are you offering?â€? This is Cubaâ€™s informal realestate bazaar, where a chronic housing shortage brings everyone from newlyweds to retirees together to strike deals that often involve thousands of dollars in under-the-table payments. Theyâ€™re breaking not just the law but communist doctrine by trading and proďŹ ting in property, and now their government is about to get in on the action. President Raul Castro has pledged to legalize the purchase
From Cuba, Chavez governs via Twitter BY IAN JAMES
CARACAS â€” Venezuelaâ€™s President Hugo Chavez is using Twitter as a tool to govern remotely while he undergoes cancer treatment in Cuba. In more than 40 messages this week on his â€œchavezcandangaâ€? account, he has approved money for a Caracas trash collection project, praised plans for a new park and cheered on the national soccer team. Chavez hasnâ€™t mentioned anything about his chemotherapy but has alluded to his personal battle time and again, as he did in one tweet to a supporter on Tuesday: â€œWeâ€™re moving along here, brother! With God and the Virgin!â€? Most of his messages have had the tone of a patriotic father ďŹ gure connecting with his public. Chavez boasts more than 1.8 million followers, and his messages also regularly pop up on the screen on state television in Venezuela. A leader who knows well how to choose his sound bites, Chavez has used Twitter to remain in the news at home even as he is out-of-pocket and not making his usual appearances on television. He did just that Thursday morning in a ďŹ‚urry of messages when he complained about a refereeâ€™s call during Venezuelaâ€™s soccer match against Paraguay at the Copa America tournament in Argentina. ,TURN TO CHAVEZ, 2A
FORMER NEWS OF THE WORLD EDITOR FOUND IN FLORIDA, 3A
and sale of homes by the end of the year, bringing this informal market out of the shadows as part of an economic reform package under which Cuba is already letting islanders go into business for themselves in 178 designated activities, as restaurateurs, wedding planners, plumbers, carpenters. An aboveboard housing market promises multiple beneďŹ ts for the cash-strapped island: It would help ease a housing crunch, stimulate construction employment and generate badly needed tax revenue. It would attack corruption by ofďŹ cials who accept bribes to sign off on illicit deals, and give people options to seek peaceful resolutions to black-market disputes that occasionally erupt into violence.
Itâ€™s also likely to suck up more hard currency from Cubans abroad who can be counted on to send their families cash to buy, expand and remodel homes, especially since U.S. President Barack Obama relaxed the 50-year-old economic embargo to allow unlimited remittances by Cuban-Americans. â€œAll these things are tied in,â€? said Sergio Diaz-Briquets, a U.S.-based demography expert. â€œThey want expatriate Cubans to contribute money to the Cuban state, and this is one big incentive for people who want to help their families.â€? But few changes are likely to be as complex and hard to implement as real estate reform. ,TURN T0 CUBA, 4A
OSLO, Norway â€” Norwayâ€™s peace was shattered twice Friday when a bomb ripped open buildings in the heart of its government and a man dressed as a police ofďŹ cer gunned down youths at a summer camp. Police have linked one Norwegian to both attacks, which killed a total of at least 16 people in nationâ€™s worst violence since World War II. Police said they did not know the motive or whether the attacks were the work of one person or a terrorist group, but Justice Minister Knut Storberget said the man who opened ďŹ re at the youth camp is Norwegian. In Oslo, the capital and the city where the Nobel Peace Prize is awarded, the bombing left a square covered in twisted metal, shattered glass and documents from surrounding buildings. Later at Utoya island, some 60 miles northwest, hundreds of ,TURN TO NORWAY, 2A
Victims receive treatment outside government buildings in the centre of Oslo, after an explosion tore open several buildings including the prime minister's office, on Friday.
Obama presses House GOP to compromise WASHINGTON â€” (AP) â€” U.S. President Barack Obama sought Friday to pressure House Republicans to come around to a deal that he insisted must include new taxes as well as unpalatable spending cuts with less than two weeks remaining to resolve the urgent issue of increasing the United Statesâ€™ borrowing powers and averting a potentially disastrous government default. At the same time, even with no clear end in sight to negotiations that have dragged on for weeks, the president asserted that the United States has never defaulted on its debt and wonâ€™t do so now. â€œThe United States of America doesnâ€™t run out without paying the tab. We pay our bills. We meet our obligations,â€? Obama said at a town hall meeting at the University of Maryland, College Park. The leader of the House of Representatives, Speaker John Boehner, told reporters he and Obama had failed to reach a separate agreement to resolve the debt crisis. â€œThere was no agreement, pub-
licly, privately, never an agreement, and frankly not close to an agreement,â€? Boehner said. â€œSo I suggest itâ€™s going to be a hot weekend here in Washington, D.C.â€? Boehner declared Friday that
the House has â€œdone its jobâ€? by passing a bill that calls for slashing spending and a balanced-budget amendment. He said it was time for the Senate to act. But as expected, the Democratic-run Senate ďŹ rmly
â€˜The only people we have left to convince [about the debt ceiling deal] are some folks in the House of Representatives,â€™ U.S. President Barack Obama said on Friday.
rejected the House Republican bill in a 51-46 vote on Friday. The Obama administration says the government is in danger of defaulting for the ďŹ rst time in its history after Aug. 2 unless Congress raises the federal debt ceiling from its present $14.3 trillion level so it can keep borrowing enough to pay its bills. But Democrats and Republicans have been deadlocked over terms of a deďŹ cit-reduction package linked to the debt-limit increase, with Democrats demanding some tax increases and Republicans insisting on doing it just with spending cuts. Obama insisted at the town hall meeting that the public as well as many in Congress supported his approach of mixing higher taxes for the wealthy and corporations with steep spending cuts. â€œThe only people we have left to convince are some folks in the House of Representatives and weâ€™re going to keep working on that,â€? he said. ,TURN TO DEBT LIMIT, 2A
Georgiaâ€™s videotaped execution sets new precedent BY GREG BLUESTEIN Associated Press
ATLANTA â€” The video camera that recorded the execution of a Georgia death row inmate did more than give attorneys an account of the manâ€™s reaction to a new lethal injection drug. Death penalty experts say it could also lead to a ďŹ‚urry of new legal moves seeking more public access to secretive death chambers.
PROPOSED SAUDI LAW WOULD REQUIRE JAIL FOR CRITICS OF KING, 6A
Thursdayâ€™s execution of Andrew Grant DeYoung for the 1993 murders of his parents and sister was believed to be the ďŹ rst in the United States in almost two decades recorded on video. It came at the urging of defense attorneys who want to document the effects of the sedative pentobarbital. The Georgia Attorney Generalâ€™s ofďŹ ce warned the move could set a troubling precedent and had
MERKEL CONFIDENT OF SECURING SUPPORT FOR GREECE DEAL, BUSINESS FRONT
the â€œpotential for sensationalism and abuse,â€? and the state worried it could encourage a rash of similar ďŹ lings. The execution was pushed back a day to buy prosecutors time to block the taping, but a second legal challenge was also rejected. Fordham Law School professor Deborah Denno said she expects attorneys to start demanding that executions be recorded on video now that Georgia has done so.
â€œThis development would help immensely in detecting the many problems with the lethal injection process, especially if the videotaping included all of the procedure from start to ďŹ nish,â€? she said. The legal ďŹ ght over the video recording unfolded amid a larger debate about Georgiaâ€™s lethal injection procedure. ,TURN TO EXECUTION, 2A
NFL OWNERS APPROVE TENTATIVE LABOR DEAL, SPORTS FRONT
INDEX THE AMERICAS ..........4A U.S. NEWS ....................5A OPINION ........................7A COMICS & PUZZLES .....6B 5
BUSINESS&SPORTS B SATURDAY, JULY 23, 2011
THE MARKETS DOW 30
10-YR NOTE CRUDE OIL
Stocks buoyed by tech firms earnings
LAWMAKERS PREPARE TO OVERHAUL POSTAL SERVICE
BY DANIEL WAGNER AND DAVID K. RANDALL Associated Press
TIMOTHY FADEK/BLOOMBERG NEWS
A U.S. Postal Service worker pushes a mail cart in New York. Below, a postal worker shares a light moment with a customer as he delivers mail in Oakland.
BY SEAN COLLINS WALSH
New York Times Service
WASHINGTON — Until the deﬁcit negotiations took center stage this summer, several members of Congress had another idea about what they wanted to focus on: an overhaul of the U.S. Postal Service, which is on the brink of insolvency. “If it wasn’t for the federal debt ceiling and the budget issues, this would be a major, major issue,” said Rep. Stephen F. Lynch, D-Mass., who has proposed a bill that would overhaul the Postal Service’s pension obligations. The Postal Service has been imploring Congress to act for years. If the status quo continues, postmaster general Patrick R. Donahoe said Wednesday, mail delivery could be cut back to three days a week within 20 years. The
current Congress could be the one to take action. Lawmakers on both sides of the aisle agree that the Postal Service needs revamping. Five overhaul bills have been introduced — two by Republicans and three by Democrats — with proposals addressing issues like the actuarial assumptions for employees’ retirement beneﬁts and the viability of Saturday deliveries. “The situation at the Postal Service is dire,” said Sen. Thomas R. Carper, D-Del., who has introduced one of the bills. “The option of doing nothing is not an option.” The most likely path to passing major legislation appears to be through the Senate, where Carper, who is chairman of the committee responsible for the Post Ofﬁce, and Sen. Susan Collins, a
Maine Republican who has introduced a different bill, are working together to draft a compromise that could pass with bipartisan support. The Senate bill would probably grant the Postal Service much of what it wants, including the ability to tap into surpluses in its retiree beneﬁts funds, which would maintain solvency in the short term. It could also allow the Postal Service to ship wine and beer, close more unproﬁtable post ofﬁces and eliminate Saturday deliveries. “Those of us in the postal community believe that if Sen. Carper’s bill can pass the Senate with some bipartisan support, there may be a chance that some legislation can be considered and voted upon in the House,” said Ruth )TURN TO U.S. POST, 2B
CANDACE WEST/MIAMI HERALD STAFF
A big earnings miss from Caterpillar on Friday wasn’t enough to derail a rally that pushed the stock market up 2 percent for the week. The Dow Jones industrial average fell 43.25 points, or 0.3 percent, to 12,681.16. Even with the decline, the Dow gained 1.6 percent for the week. It has ﬁnished three out of the last four weeks higher than where it started. The broader Standard & Poor’s 500 index gained 1.22, or 0.1 percent, to 1,345.02. It ﬁnished the week with a gain of 2.2 percent. The Nasdaq composite index rose 24.40 points, or 0.9 percent, to 2,858.83. Caterpillar fell nearly 6 percent after the heavy equipment maker earned less than analysts were expecting last quarter, partly because of the earthquake and tsunami disaster in Japan. The company is seen as a bellwether for the global economy because it sells construction and mining machinery all over the world. The weaker results from Caterpillar and a continuing deadlock over raising the U.S. borrowing limit capped the stock market’s gains. Overseas markets rose after European leaders reached a deal late Thursday aimed at containing the region’s debt crisis. Energy, technology and consumer discretionary companies were the only three of the 10 industries tracked by the S&P 500 that rose. That was still enough to push the broad market index higher. Consumer discretionary companies include retailers like Amazon and restaurant chains like McDonalds. McDonald’s rose 2 percent, the most of any stock in the Dow average, after its income and revenue came in higher than analysts were expecting due to strong sales in Europe. Technology stocks rose broadly after Advanced Micro Devices reported strong second-quarter earnings and said its new computer graphics chip was selling well. AMD jumped 19 percent. Flash memory card maker SanDisk rose 10 percent after its earnings rose sharply. Microsoft gained 1.6 percent after beating analyst’s income estimates. Oil services company Schlumberger rose 3 percent after its proﬁts increased on a pickup in drilling in North America. Traders kept close watch on negotiations in Washington over a deal to raise the nation’s debt ceiling ahead of an Aug. 2 deadline. The impasse has overshadowed an agreement in Europe Thursday to give Greece a second ﬁnancial lifeline and broaden the powers of a regional bailout fund. Strong earnings from Apple, Coca-Cola and IBM helped send stocks higher this week. The Dow gained 202 points on Tuesday, its biggest one-day jump of the year, after U.S. President Barack Obama backed a proposal by six senators that would cut the country’s debt by $3.7 trillion over the next decade and raise the nation’s debt ceiling. Rising and falling shares were about even on the New York Stock Exchange. Volume was lighter than average at 3.3 billion shares.
Merkel confident of German support for Greek deal BY GEIR MOULSON Associated Press
BERLIN — Germany’s Chancellor Angela Merkel said Friday she’s conﬁdent of securing German lawmakers’ support for the new Greek bailout deal, stressing that Europe will leave no member state behind. Merkel portrayed herself as a patient but passionate European after securing the agreement — which was generally wellreceived in Germany after months in which she has faced criticism at home and abroad for lackluster leadership. While Thursday’s summit brought “signiﬁcant results,” Merkel cautioned against expectations that it would end the debt crisis once and for all — and said a more radical solution such as a forced debt restructuring could have had uncontrollable consequences. “In human terms, this longing for a spectacular thunderbolt is understandable — but politically it is negligent, and just a sign that one is losing patience,” the chancellor said. Merkel pushed through a contribution from banks, a key aim — but conceded wider powers for the eurozone rescue fund, such as authorization for it to buy bonds on the secondary market, which lawmakers in her center-right coalition have opposed. The chancellor made clear she doesn’t plan to rush the new Greek bailout and changes to the rescue fund through the German Parliament, which isn’t scheduled to meet until Sept. 6. She said it was “absolutely sufﬁcient” for it to vote after the summer break. “I am absolutely sure that I can rely, of course, on the coalition’s majority” in getting the legislation passed, she added at a news conference. While at least one opposition party signaled that it would vote in favor, failing to deliver her own coalition’s votes would be a major blow to Merkel. )TURN TO GREEK DEAL, 2B
Europe must choose currency union or financial union BY FLOYD NORRIS
New York Times Service
f there was one lesson to be learned from the European sovereign debt crisis, it was that monetary union by itself cannot work indeﬁnitely. If Europe really wants to preserve the advantages of the euro currency, it will need far more ﬁscal and economic integration. Nations will have to give up a signiﬁcant amount of sovereignty. European leaders seem to be willing to accept that reality. But
persuading publics may be far more difﬁcult. After more than a year of claiming that Greece could be bailed out without signiﬁcant costs either for lenders or the rest of Europe, European leaders pledged Thursday to pump in large amounts of money to try to revive the Greek economy while delaying repayment and reducing interest rates on existing loans. It appears that the deal will mean solvent European nations
will have to write some very large checks. Lenders will suffer losses, and some banks may need more bailouts, which Europe will pay for through a collective fund that will be authorized to borrow money backed by European states individually and collectively. That fund, called the European Financial Stability Facility, will also take over lending to Greece, at rates close to what the facility is forced to pay when it borrows money. Other parts of the communique
issued by the European leaders after their summit meeting in Brussels promise there will be more central control over national budgets and tax policies. Call it the federalization of Europe. Unlike the ﬁrst Greek bailout, in spring 2010, the European leaders now accept that the Continent has a responsibility not just to prevent collapse but to get the Greek )TURN TO EUROPE, 2B
Borders begins liquidating, ending an era in book selling BY ANDREW KHOURI
Los Angeles Times Service
LOS ANGELES — The giant bookseller Borders began liquidating its 399 stores across the United States on Friday. Books, DVDs and furniture valued at more than $700 million is being discounted up to 40 percent, liquidators said. The sales are expected to wrap up in September. As many as 10,700 chain employees will lose their jobs after liquidation. Still up in the air is a possible sale of up to 35 locations to an Alabama company. “This marks the end of an era, and we thank our customers for their patronage over our 40-year history. I encourage our customers to take advantage of this one-time opportunity to ﬁnd exceptional discounts on their favorite books and other great merchandise,” Mike Edwards, president of Ann Arbor, Mich.-based Borders
Group, said in a statement. The liquidation plan was approved by a U.S. bankruptcy judge in New York on Thursday — as the bookseller inked its ﬁnal chapter, ﬁnally defeated by poor management decisions, massive debt and a changing industry. Until recently, the company looked as if it might stay in business. But last week, its unsecured creditors rejected a $215.1 million buyout bid from Najaﬁ in Phoenix. With Borders closing shop, more U.S. citizens will turn to online competitors for books and music — accelerating a trend that hurt Borders, said Al Greco, a book publishing expert and professor of marketing at Fordham University’s Graduate School of Business. Beginning as a used-bookstore in 1971 in Ann Arbor — home to the University of Michigan — Borders helped pioneer the book superstore and thrived in the 1980s and 1990s
with greater selections, cheaper prices and more leisure space than smaller, independent book shops. But the company fumbled through the digital age, missing important
shifts in the industry as consumers migrated online. Poor decisions by a series of executives unfamiliar with the publishing world severely hurt Borders, Greco said.
MANDEL NGAN/AFP-GETTY IMAGES
Borders helped pioneer the book superstore and thrived in the 1980s and 1990s with wider selections and lower prices.
MIAMIHERALD@HOY.COM.EC G. MERCADO 9 DE OCTUBRE:
11. STRAW HAT MUSEUM & WORKSHOP.
1. LAS CONCEPTAS MUSEUM.
2. MODERN ART MUSEUM. 12. LA ESQUINA DE LAS ARTES (ART CORNER). 3. NATIVE CULTURE MUSEUM. TRADITIONAL NEIGHBORHOODS & MARKETS 4. CENTRAL BANK MUSEUM. A. BARRIO DE LAS HERRERÍAS: 5. CENTER OF POPULAR INTER-AMERICAN ARTS (CIDAP).
PLAZAS & PARKS 13. ABDÓN CALDERÓN PARK
B. BARRIO DE EL VADO: 6. CASA DE LA CULTURA MUSEUM.
COLEGIO BENIGNO MALO.
14. SAN FRANSISCO PLAZA. C. BARRIO DE TODOS SANTOS:
7. MUSEUM OF METAL.
D. MERCADO DE LAS FLORES:
8. MUSEUM OF MEDICAL HISTORY, GUILLERMO AGUILAR MALDONADO.
CASA CORDERO. SALÓN DEL PUEBLO.
15. SAN BLAS PARK:
CASA DE LAS PALOMAS.
16. EL ROLLO PLAZOLETA: E. MERCADO 3 DE NOVIEMBRE:
9. MUSEUM REMIGIO CRESPO TORAL.
F. MERCADO 10 DE AGOSTO:
10. MUSEUM MANUEL AGUSTÍN LANDÍVAR.
CASA DE LOS CANÓNIGOS. COLEGIO FEBRES CORDERO. 17. SAN SEBASTIAN PARK: CHURCHES 18. SANGURIMA PLAZA:
CATEDRAL DE LA INMACULADA CONCEPCION (CATEDRAL NUEVA). IGLESIA DE EL SAGRARIO (CATEDRAL VIEJA). AUXILIADORA:
20. PLAZA CRUZ DEL VADO:
CARMEN DE LA ASUNCION. SAN FRANSISCO CHURCH. TODOS SANTOS CHURCH.
21. PARQUE DE LA MADRE:
SAN BLAS CHURCH. SANTO DOMINGO CHURCH.
22. PLAZA DE LAS MONJAS:
LAS CONCEPTAS CHURCH. SAN SEBASTIAN CHURCH.
23. VICTOR J. CUESTA PARK:
SAN ALFONSO CHURCH.
OUTSIDE OF CUENCA OTHER ATTRACTIONS CUENCA MUNICIPAL BUILDING. CASA DE LAS POSADAS. CASA DE CHAHUARCHIMBANA.
CAJAS NATIONAL PARK: INGAPIRCA: GUALACEO: CHORDELEG: COJITAMBO:
SUPERIOR COURT OF JUSTICE.