Labels maintain new music spend despite sales slump

LONDON (Reuters) – Record labels say they have maintained high levels of investment in new music despite sweeping changes to their business in the digital age and a decade of falling revenues caused by sliding album sales and online piracy.

According to a new study from industry body IFPI published on Monday, record companies invested $ 4.5 billion in A&R (artists and repertoire) and marketing in 2011.

That was down from $ 5 billion in 2008, partly due to a significant drop in the amount record labels were willing to spend on marketing up-and-coming talent at a time of shrinking income.

But the A&R side fell less sharply to $ 2.7 billion last year versus $ 2.8 billion in 2008 despite a decline of 16 percent in the trade value of the industry globally over the same period.

Presenting the report in London, Max Hole, COO of Universal Music Group International, said he was cautiously optimistic that the music business would return to growth soon, helped by the proliferation of digital platforms.

“The stats are getting better, the rate of decline is slowing,” he told reporters.

“There’s every reason to hope that in the next couple of years we’ll reach the low point and start to go back to growth.”

According to the IFPI, in the first nine months of 2012, global recorded music sales had fallen by around one percent year-on-year after a fall of three percent in 2011.

The industry peaked in 1999 when sales were $ 28.6 billion, but has shrunk every year since, reaching $ 16.6 billion in 2011.

“I just feel that we are at a tipping point of lots and lots of services coming on, and services that really are in touch with the consumer,” Hole said, adding that, crucially, the platforms were more attractive than illegal pirate sites.

BANDS WANT LABELS

The report showed that more than 70 percent of unsigned acts in Britain and Germany wanted a record deal, despite the perception that many artists are keen to go it alone with the help of social networking.

Major labels have been accused of being slow to adjust to the challenges posed by digital music and illegal downloads, and relying too heavily on older, established acts to make money.

But the IFPI report sought to underline their role in unearthing new talent in a notoriously risky business.

Revenues invested in A&R represent around 16 percent of industry turnover, compared with 15.3 percent in the pharmaceuticals and biotech sector and 9.6 percent in software and computing.

The IFPI estimated breaking a pop act in a major market typically costs from $ 750,000 to $ 1.4 million, including a $ 200,000 advance, $ 200-300,000 on recording, $ 50-300,000 on videos, $ 100,000 on touring and $ 200-500,000 on marketing.

The Internet has revolutionized the way record labels go about their business, the report said.

A&R representatives today rely on the Internet as much as they do on attending gigs up and down the country to discover the next best thing, although most still want to see an act live before making up their minds.

According to the report, record labels are providing far more digital content as part of their marketing and promotion, and tend to sign deals with artists which go well beyond the shrinking recorded music business.

Brand partnerships, offering songs for use on television, in film and in commercials, and linking up singers from different regions to generate cross-over interest are just some of the ways they can help establish a new act, the IFPI added.

Hole said the recent merger between Universal, already the world’s largest music label, and EMI, would not lead to less A&R spending, but more.

“We have stated quite categorically that our intention is to reinvest in EMI and boost it and we think it will result in more investment in A&R,” he said.

“We operate a multi-label structure and that was something that had declined at EMI,” he added. “We’re going to reverse that.”

(Editing by Steve Addison)

Internet News Headlines – Yahoo! News

Read More..

China says Hollywood putting pinch on domestic films

BEIJING (Reuters) – China‘s films are taking a hit from a trade deal that allows for more U.S. movie imports, the country’s broadcast regulator said on Sunday, with their share of the box office take sliding even as the industry’s total revenues outpace those of last year.

The movie pact, which exempted 14 films from China’s annual quota of 20 foreign films per year, was hammered out in February during a trip to the United States by Vice President Xi Jinping, the man expected to take the ruling Communist Party‘s top spot after a congress held this week in Beijing.

After signing the deal, the number of American films in China and their proportion of revenues have increased by a “large margin”, Vice Minister of the State Administration of Radio, Film and Television Tian Jin said.

“The past dominance of domestic films in the Chinese market has been shaken,” Tian told a press briefing on the sidelines of the congress held once every five years.

China’s 2012 box office revenues reached 13.27 billion yuan ($ 2.12 billion) at the end of October, Tian said, already outpacing revenues from all of 2011. But the share of revenues for domestically produced films was only 41.4 percent, constituting “a huge drop”.

Tian said the U.S. film industry is reaping massive profits while domestic producers are under greater pressure, mainly because Chinese movies cannot compete with the Hollywood spectacles.

“The competitiveness of Chinese-made films must be raised,” he said.

Chinese film industry experts have said that Hollywood’s looming shadow means Chinese producers need to focus on quality if they are going to elevate their appeal to a Chinese audience.

February’s deal stemmed from a victory in a 2009 U.S. World Trade Organization case that challenged Beijing’s restrictions on import and distribution of copyright-protected materials.

The U.S. movie industry has long complained about China’s tight restrictions on foreign films, which they say helps fuel demand for pirated DVDs that are widely available in China.

It also argued that it was being boxed out of a booming market, as the fast-growing Chinese middle class spends more money in theatres.

The Chinese film market is seen as one of the largest potential markets for Hollywood, but it has also been tightly controlled by the state-owned China Film Group.

Chinese films frequently compete for international awards, but winners overseas are often not those supported by China’s government, which tend to fan nationalist and patriotic sentiment.

(Reporting by Michael Martina; Editing by Nick Macfie)

Movies News Headlines – Yahoo! News

Read More..

Food labels multiply, some confuse consumers

FRESNO, Calif. (AP) — Want to avoid pesticides and antibiotics in your produce, meat, and dairy foods? Prefer to pay more to make sure farm animals were treated humanely, farmworkers got their lunch breaks, bees or birds were protected by the farmer and that ranchers didn’t kill predators?

Food labels claim to certify a wide array of sustainable practices. Hundreds of so-called eco-labels have cropped up in recent years, with more introduced every month — and consumers are willing to pay extra for products that feature them.

While eco-labels can play a vital role, experts say their rapid proliferation and lack of oversight or clear standards have confused both consumers and producers.

“Hundreds of eco labels exist on all kinds of products, and there is the potential for companies and producers to make false claims,” said Shana Starobin, a food label expert at Duke University’s Nicholas School of the Environment.

Eco-labels have multiplied in recent years in response to rising consumer demand for more information about products and increased attention to animal and farmworker welfare, personal health, and the effects of conventional farming on the environment.

“Credible labels can be very helpful in helping people get to what they want to get to and pay more for something they really care about,” said Urvashi Rangan, director of consumer safety at Consumer Reports. “The labels are a way to bring the bottom up and force whole industries to improve their practices.”

The problem, Rangan and other said, is that few standards, little oversight and a lot of misinformation exist for the growing array of labels.

Some labels, such as the USDA organic certification, have standards set by the federal government to which third party certifiers must adhere. Some involve non-government standards and third-party certification, and may include site visits from independent auditors who evaluate whether a given farm or company has earned the label.

But other labels have little or no standards, or are certified by unknown organizations or by self-interested industry groups. Many labels lack any oversight.

And the problem is global, because California’s products get sold overseas and fruits and vegetables from Europe or Mexico with their own eco-labels make it onto U.S. plates.

The sheer number of labels and the lack of oversight create a credibility problem and risk rendering all labels meaningless and diluting demand for sustainably produced goods, Rangan said.

Daniel Mourad of Fresno, a young professional who likes to cook and often shops for groceries at Whole Foods, said he tends to be wary of judging products just by the labels — though sustainable practices are important to him.

“Labels have really confused the public. Some have good intentions, but I don’t know if they’re really helpful,” Mourad said. “Organic may come from Chile, but what does it mean if it’s coming from 6,000 miles away? Some local farmers may not be able to afford a label.”

In California, voters this week rejected a ballot measure that would have required labels on foods containing genetically modified ingredients.

Farmers like Gena Nonini in Fresno County say labels distinguish them from the competition. Nonini’s 100-acre Marian Farms, which grows grapes, almonds, citrus and vegetables, is certified biodynamic and organic, and her raisins are certified kosher.

“For me, the certification is one way of educating people,” Nonini said. “It opens a venue to tell a story and to set yourself apart from other farmers out there.”

But other farmers say they are reluctant to spend money on yet another certification process or to clutter their product with too much packaging and information.

“I think if we keep adding all these new labels, it tends to be a pile of confusion,” said Tom Willey of TD Willey Farms in Madera, Calif. His 75-acre farm, which grows more than 40 different vegetable crops, carries USDA organic certification, but no other labels.

The proliferation of labels, Willey said, is a poor substitute for “people being intimate with the farmers who grow their food.” Instead of seeking out more labels, he said, consumers should visit a farmers’ market or a farm, and talk directly to the grower.

Since that’s still impossible for many urbanites, Consumer Reports has developed a rating system, a database and a web site for evaluating environmental and food labels — one of several such guides that have popped up recently to help consumers.

The guides show that labels such as “natural” and “free range” carry little meaning, because they lack clear standards or a verification system.

Despite this, consumers are willing to pay more for “free range” eggs and poultry, and studies show they value “natural” over “organic,” which is governed by lengthy federal regulations.

But some consumers and watchdog groups are becoming more vigilant.

In October, the Animal Legal Defense Fund filed a lawsuit against Petaluma, Calif., organic egg producer of Judy’s Eggs over “free range” claims. The company’s packaging depicts a hen ranging on green grass, and the inside reads “these hens are raised in wide open spaces in Sonoma Valley…”

Aerial photos of the farm suggest the chickens actually live in factory-style sheds, according to the lawsuit. Judy and Steve Mahrt, owners of Petaluma Farms, said in a statement that the suit is “frivolous, unfair and untrue,” but they did not comment on the specific allegations.

Meanwhile, new labels are popping up rapidly. The Food Justice label, certified via third party audits, guarantees a farm’s commitment to fair living wages and adequate living and working conditions for farmworkers. And Wildlife Friendly, another third-party audited program, certifies farmers and ranchers who peacefully co-exist with wolves, coyotes, foxes and other predators.

___

Follow Gosia Wozniacka at http://twitter.com/GosiaWozniacka

Health News Headlines – Yahoo! News

Read More..

Bernanke’s stamp on Fed could tie hands of successor

NEW YORK (Reuters) – President Barack Obama‘s next choice to head the U.S. Federal Reserve could have his or her hands tied if Ben Bernanke and company continue to re-write the policymaking rule book at their current clip.

Under Chairman Bernanke, who is expected to step down when his current term expires in January 2014, the U.S. central bank has embraced the goal of making the historically shrouded business of setting monetary policy far more transparent.

It has adopted a string of new rules and guidelines to clarify its policy intentions, including an inflation target and a conditional vow to hold interest rates near zero until at least mid-2015.

The next step is being hotly debated now.

Fed policymakers are striving to agree on a set of economic variables, or thresholds — probably particular levels of unemployment and inflation — that would signal when the time to raise interest rates was finally drawing near.

The trick is making a credible commitment that convinces investors to keep longer-term borrowing costs low, thus stimulating the economy, while at the same time ensuring the Fed can react swiftly to changing economic realities.

The concern is that these rules and guidelines will crimp the central bank’s flexibility in years to come as it deals with the fits and starts of a protracted U.S. economic recovery.

“The more they do it over the next year, the more the next chair will be constrained,” said Vincent Reinhart, chief U.S. economist at Morgan Stanley and a former Fed economist. The “constructive ambiguity” the central bank has famously used over the years to safeguard its policy-setting discretion is slowly disappearing, he said.

PRESERVING POLICY CREDIBILITY

In battling the worst recession in decades, central banks around the world have deployed untested tools, such as large-scale bond purchases. They have also often made commitments about how, and for how long, they plan to use the tools.

Their decisions will matter for years to come.

After eight grueling years battling a severe financial crisis, the deepest recession since the Great Depression and a disappointing recovery, Fed watchers say Bernanke will likely want to step down when his second term as Fed chief expires, even if Obama wants him to stay.

But the economy is unlikely to have fully recovered by then, leaving any rate-hike cycle to his successor. Fed Vice Chair Janet Yellen and Lawrence Summers, a former White House economic adviser, are both considered possible top candidates for the job.

Whomever Obama nominates will be handed a rule book from the Bernanke era that will be difficult, and maybe unwise, to erase.

Though the guidelines adopted under Bernanke are not iron-clad law, “the credibility of policy actions would be at stake if they were easily overturned,” said Peter Hooper, chief U.S. economist at Deutsche Bank Securities.

AGE OF IMPROV

If Fed officials can reach agreement, economic thresholds would replace their stated expectation that interest rates would remain near zero through at least mid-2015.

It would be the latest refinement to the Fed’s communications toolkit. In the last 16 months alone, it moved to tie low interest rates to calendar dates, adopted a formal inflation target of 2 percent, and published the policy expectations of each of its 19 policymakers. It built on that list in September when it said it expected to buy bonds until the labor market outlook improved “substantially.”

Within the Fed’s policy-making committee, however, consensus on which unemployment or inflation levels to use has proven elusive. Four top Fed officials have gone public with their own proposals, whether simply to provide a window into their tough internal debate or to sway their colleagues.

“It would be nice if we could communicate more clearly what those parameters are,” William Dudley, the influential president of the Federal Reserve Bank of New York, said last month.

“The problem of course is that it’s very hard to summarize the economy, and how you’re going to feel about the economy, through just one or two parameters,” said Dudley, who has not pitched a plan.

Yellen — who as chair would likely smooth the transition from Bernanke — could shed more light on the issue on Tuesday when she gives a speech on central bank communications.

To be sure, Bernanke’s Fed has been careful to leave itself some breathing space. The current round of bond purchases is “open-ended,” meaning there is no dollar value or timeline constraining it.

Still, the drum beat of rule changes continues.

The Fed is also considering adopting a “consensus forecast” to give investors a better sense of how policy is likely to evolve. That would build on a January decision to publish for the first time individual policymakers’ rates forecasts.

As Bernanke’s term draws to a close, the jury is still out on the effectiveness of the new transparency steps.

“It is the improvisation stage,” Reinhart said, “and it does feel unsatisfying.”

(Reporting by Jonathan Spicer; Editing by Tim Ahmann and Leslie Adler)

Business News Headlines – Yahoo! News

Read More..

Israel kills Gaza rocket crewman in second day of clashes

GAZA (Reuters) – An Israeli air strike killed a Palestinian militant in the Hamas-governed Gaza Strip on Sunday as a surge in cross-border violence entered its second day, local officials said.

Islamic Jihad, a smaller faction than Hamas which often operates independently, identified the dead man as one of its own, saying he was a member of a rocket crew hit by an Israeli missile in Jabalya, northern Gaza.

The Israeli military confirmed carrying out an air strike in the area. The death brought to six the number of Palestinians killed by Israel since four of its troops were hurt in a missile attack on their jeep along the Gaza boundary fence.

Islamic Jihad said it had fired 70 short-range rockets and mortar bombs across the border since Saturday, salvoes which drove Israeli residents to blast shelters. At least one Israeli, in the town of Sderot, was wounded, ambulance workers said.

Israel described the jeep ambush as part of a Palestinian strategy of trying to curb its countermeasures against possible cross-border infiltration. Israeli forces often mount hunts for tunnels and landmines on the inside of the Gaza boundary, creating a no-go zone for Palestinians.

“Of course we don’t accept their attempt to change the rules,” Defence Minister Ehud Barak told Israel’s Army Radio.

“The essence of the struggle is over the fence. We intend to enable the IDF (Israel Defence Forces) to work not just on our side but on the other side as well.”

Palestinians said four of Saturday’s dead were civilians hit by an Israeli tank shell while paying respects at a crowded mourning tent in Gaza’s Shijaia neighborhood. Israel denies targeting civilians.

The bloodshed puts internal pressure on Hamas, which, though hostile to the Jewish state, has sat out some of the recent rounds of violence as it tried to consolidate its Gaza rule and reach out to neighboring Egypt and other foreign powers.

Israel blames Hamas for any attacks emanating from Gaza, but has shown little appetite for a major sweep of the territory which might strain its own fraught ties to the new Islamist-rooted government in Cairo.

(Writing by Dan Williams; Reporting by Nidal al-Mughrabi; Editing by Todd Eastham)

World News Headlines – Yahoo! News

Read More..

How Apple’s iPad Mini compares with rivals

The iPad Mini is just one of several tablets of its size. Here’s a look at how the Mini compares with other tablets with comparable screens.

Apple Inc.’s iPad Mini

— Price: $ 329 for base model with Wi-Fi only and 16 gigabytes of storage, $ 429 with 32 GB, $ 529 with 64 GB. Add $ 130 for versions with cellular capability.

— Screen size: 7.9 inches diagonally

— Screen resolution: 1024 by 768 pixels

— Weight: 0.68 pound (0.69 pound for cellular versions)

— Cameras: 5-megapixel camera on back and a low-resolution camera on front, for videoconferencing

— Battery life: 10 hours

— Operating system: Apple‘s iOS

Pros: Unmatched access to third-party applications, high-quality Apple software and the iTunes store. High-resolution screen. Available with access to fast 4G wireless broadband networks, starting at $ 459. Larger-screen version available.

Cons: Data storage cannot be expanded with memory cards.

Barnes & Noble Inc.‘s Nook HD

— Price: $ 199 with 8 gigabytes of storage, $ 229 with 16 GB

— Screen size: 7 inches diagonally

— Screen resolution: 1440 by 900 pixels

— Weight: 0.69 pound

— Cameras: None

— Battery life: Up to 10.5 hours of reading and up to 9 hours of video

— Operating system: Modified version of Google‘s Android

Pros: Expandable with microSD card. High-definition screen. Larger-screen version available.

Cons: Selection of third-party applications is small. Lacks cameras and option for cellular broadband.

Amazon.com Inc.‘s Kindle Fire HD.

— Price: $ 199 with 16 gigabytes of storage, $ 249 with 32 GB

— Screen size: 7 inches diagonally

— Screen resolution: 1280 by 800 pixels

— Weight: 0.87 pound.

— Cameras: Front-facing camera.

— Battery life: 11 hours.

— Operating system: Modified version of Google’s Android

Pros: Cheap and portable. Convenient access to Amazon store. High-definition screen. Dolby audio. Larger-screen version coming Nov. 20, including option for cellular broadband.

Cons: Small selection of third-party applications available from Amazon. No rear camera for taking video and photos. Data storage cannot be expanded with memory cards.

Amazon.com Inc.’s regular Kindle Fire:

— Price: $ 159 with 8 gigabytes of storage

— Screen size: 7 inches diagonally

— Screen resolution: 1024 by 600 pixels

— Weight: 0.88 pounds

— Cameras: none

— Battery life: 8.5 hours.

— Operating system: Modified version of Google’s Android

Pros: Cheap and portable. Convenient access to Amazon store.

Cons: No-frills tablet lacks camera and microphone. Small selection of third-party applications available from Amazon. Data storage cannot be expanded with memory cards. No option for cellular wireless broadband.

Google Inc.’s Nexus 7

— Price: $ 199 with 16 gigabytes of storage, $ 249 with 32 GB. Add $ 50 for 32 GB model with cellular capability (available Nov. 13).

— Screen size: 7 inches diagonally

— Screen resolution: 1280 x 800 pixels

— Weight: 0.75 pounds

— Cameras: Front-facing, 1.2 megapixel camera

— Battery life: 8 hours

— Operating system: Google’s Android

Pros: Access to a variety of games, utilities and other software for Android devices, though not as extensive as apps available for iPad. Option for cellular wireless broadband.

Cons: Integrates with Google Play store, which is still new and isn’t as robust as Apple or Amazon’s stores. Data storage cannot be expanded with memory cards.

Gadgets News Headlines – Yahoo! News

Read More..

Chen Guang-who? Chinese official claims ignorance of blind activist

BEIJING (Reuters) – Despite causing a huge diplomatic incident between the world’s two largest economies earlier this year, the Chinese official in charge of the hometown of blind legal activist Chen Guangcheng said on Friday that he has no idea who he was.

Chen, one of China’s most prominent human rights advocates, slipped away from under the noses of guards and eyes and ears of surveillance equipment around his village home near Linyi in eastern Shandong province in late April.

He then sought refuge at the U.S. embassy in Beijing for six days, embarrassing China and creating an awkward backdrop for U.S. Secretary of State Hillary Clinton’s visit which happened to fall at the same time.

But asked on the sidelines of a party congress in Beijing about Chen, Linyi’s Communist Party boss Zhang Shaojun deadpanned.

“I’ve never heard (of him),” Zhang told Reuters, before hurrying away into a closed-door meeting.

In May, Chen told Reuters that an unnamed central government official had promised to investigate accusations that local officials engineered his jailing on false charges and subsequent 19 months of extra-judicial house arrest and abuse.

But Zhang, a portly man with thinning hair, said he knew of no such investigation.

“I’ve never heard of this matter,” he said.

Robbed of his sight as a child, the rural-born Chen taught himself law and drew international attention in 2005 after accusing officials of enforcing late-term abortions and sterilizations.

Following intense negotiations between Chinese and U.S. officials, Chen left the embassy and was allowed to apply for a visa to study abroad. He is currently a visiting fellow at the New York University School of Law.

(Reporting by Gabriel Wildau; Editing by Ben Blanchard)

Celebrity News Headlines – Yahoo! News

Read More..

States given more time to work on health exchanges

WASHINGTON (Reuters) – The Obama administration gave states extra time to work toward setting up new health insurance exchanges on Friday, days after President Barack Obama‘s re-election ensured the survival of his healthcare reform law.

The move is seen as a concession to dozens of states that delayed compliance with the Patient Protection and Affordable Care Act until after the November 6 election. Opponents of the plan had hoped a victory for Republican Mitt Romney would ultimately result in the law’s repeal.

But with Obama now heading into a second term, and a November 16 federal deadline to declare their plans looming, many states needed more time to prepare for exchanges, complex marketplaces meant to offer working families private insurance at federally subsidized rates beginning in 2014.

Since Tuesday’s election, seven states including Texas, Kansas, Virginia and Florida have said they will not pursue state-operated exchanges and conservative political donors are mounting a publicity campaign to encourage more defections.

But there are also signs that opposition could be waning in some states.

In cases where states decide not to participate, the federal government says it will go in and build an exchange on its own.

“The administration would like to do whatever it can to bring states in,” said Larry Levitt, a healthcare policy expert with the nonpartisan Kaiser Family Foundation, which tracks health issues.

“It’s always been expected that if the president got reelected, a lot of states sitting on the sidelines would realize they don’t want the federal government building a state health insurance system. That’s what we’re seeing happening.”

U.S. Health and Human Services Secretary Kathleen Sebelius said in a November 9 letter to governors that the administration still expects states to declare whether they intend to operate their own exchanges by next Friday.

But they now have until December 14 to file blueprints showing how they would operate the marketplaces. So far, about 13 states are well on their way to setting up their own exchanges.

States can also choose to develop their exchange in partnership with the federal government. As many as 30 could go that route.

Sebelius said states that prefer a partnership now have until February 15, 2013, to declare their intentions and prepare the appropriate paperwork. She said states can still apply to run exchanges in subsequent years but emphasized that the start date for coverage has not changed.

“Consumers in all 50 states and the District of Columbia will have access to insurance through these new marketplaces on January 1, 2014, as scheduled, with no delays,” she said in the letter, which described the deadline extension as a response to state requests for more time.

Analysts characterized the extension as a substantial offer from the federal government.

“It’s about as far as they reasonably could extend, knowing that the systems have to be ready by Oct 1, 2013,” said Patrick Howard, who advises states on healthcare issues for Deloitte.

The Affordable Care Act, the most sweeping health legislation since the 1960s, would extend health coverage to more than 30 million uninsured Americans. About half would receive coverage through a planned expansion of the Medicaid program for the poor, and the other half through the exchanges.

The list of states that say they will not participate in the healthcare exchanges grew this week when Virginia and Kansas added their names.

Texas, South Dakota, South Carolina, Alaska and Florida confirmed to Reuters on Friday that they will not participate in exchanges. Louisiana had also opposed the plan before the election, but officials there did not respond to inquiries about their plans under Obama’s second term.

But Maine, which advised the administration last April that it did not intend to pursue a state-based exchange, said on Friday that further guidance from Sebelius’ department could make a difference.

“It’s too soon to tell,” said Adrienne Bennett, spokeswoman for Republican Governor Paul LePage.

“We’re willing to look at the information and move forward. But we can’t move forward if we don’t have information from the Obama administration. So we’re in a holding pattern,” she said.

Several Republican advocacy groups are expected to push against the implementation of Obama’s healthcare law. Americans for Prosperity, a conservative non-profit in part funded by billionaire Koch brothers, on Friday urged U.S. governors to reject the state-based exchange options, calling them “flawed” and “bloated bureaucracies” that put states’ budgets at risk.

(Writing by David Morgan; Editing by Michele Gershberg, Eric Walsh, Claudia Parsons and David Gregorio)

Health News Headlines – Yahoo! News

Read More..

Chevron appeals against freeze

9 November 2012 Last updated at 19:55 ET

Two Argentine subsidiaries of the oil company Chevron have appealed against a court order freezing up to $ 19bn (£11.9bn) of their assets.

A judge issued the order as part of an environmental damages claim in Ecuador.

Chevron has been ordered to pay $ 19bn for polluting land in the Amazon region but because it has few assets in Ecuador the plaintiffs are trying to get the ruling enforced abroad.

Chevron said the subsidiaries had nothing to do with the judgement.

Legal quagmire

“Chevron Corp, the sole judgement debtor, has no assets in Argentina,” Chevron spokesman Kent Robertson said.

“All operations in Argentina are conducted by subsidiaries that have nothing to do with the fraudulent judgement in Ecuador,” according to Mr Robertson.

Wednesday’s court order freezing Chevron’s assets in Argentina is the latest move in a decades-long legal wrangle between Chevron and the people of the Lago Agrio region of Ecuador.

The Ecuadorean court judgement originally ordered Chevron to pay $ 8.6bn in environmental damages, but that was more than doubled because the oil company did not apologise publicly.

The Ecuadorean plaintiffs say that Texaco, which merged with Chevron in 2001, dumped toxic materials in the Ecuadorean Amazon between 1964 and 1992.

Chevron says Texaco spent $ 40m cleaning up the area during the 1990s, and signed an agreement with Ecuador in 1998 absolving it of any further responsibility.

Chevron has in the past said the original ruling against the company was a product of “bribery and fraud”.

The company has also dismissed the plaintiffs’ moves to get the ruling enforced abroad, saying that “if the plaintiffs’ lawyers believed they had a legitimate judgement, they would seek to enforce it in the United States”.

BBC News – Business

Read More..

Twin explosions strike southern Syrian city

BEIRUT (AP) — Syria‘s state-run news agency says two large explosions have struck the southern city of Daraa, causing multiple casualties and heavy material damage.

SANA did not immediately give further information or say what the target of Saturday’s explosions was.

The Britain-based Syrian Observatory for Human Rights says the blasts went off near a branch of the country’s Military Intelligence in Daraa.

The Observatory, which relies on a network of activists on the ground, says the explosions were followed by clashes between regime forces and rebels fighting to topple President Bashar Assad.

Middle East News Headlines – Yahoo! News

Read More..