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The shutdown's surprise effect on jobs numbers

Written By Unknown on Minggu, 10 November 2013 | 00.48

WASHINGTON — The government shutdown may have affected October's jobs numbers. But not how you think.

For weeks, the White House had braced for a dour report on hiring, with economists and aides lowering expectations and blaming last month's partial shutdown for the inevitable bad news to come.

Then Friday's numbers materialized: Employers appeared to have ignored the shutdown and hired away, to the tune of 204,000 jobs in October.

The shutdown, it seemed, had had no effect.

Not so fast.

In the height of irony, the 16 days of federal worker furloughs and government disruptions may have helped, not hurt, the improved jobs picture.

Typically, jobs numbers are announced on the first Friday of the month. Because of the shutdown, the Bureau of Labor Statistics delayed the release of the jobs numbers by one week to allow more time to collect payroll and household data. That extra time resulted in an above average response rate for payroll data.

So, not to get hung up on numbers, but the average participation rate by employers in payroll surveys for the nine months before October was 76.4 percent. That meant that in subsequent months, as more data was collected, the hiring numbers were adjusted, often upward.

In October, with an extra week to collect data, the participation rate was 83.5 percent, the highest ever.

A robust hiring number, to some economists, now felt slightly inflated.

"It seems that when the initial response rate is high, the initial payroll number is often, though certainly not always, stronger than the prior trend," Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a research note.

In other words, if the jobs numbers in prior months were based on a lower participation rate, a stronger participation rate would skew the number up.

"Tentatively, we think the effect of this could explain all the overshoot in payrolls," Shepherdson wrote.

As a result, some economists are predicting that when the October numbers are updated, they might be in for a downward revision and that November could yield a lower number as well.

"Businesses may have inadvertently counted employment for an extra week," said Mark Zandi, chief economist at Moody's Analytics. "That could juice up the number. That may mean that we actually get surprised next month with a much weaker number."

The shutdown had another effect on the employment data.

Besides conducting a survey of employers, which gives data on actual hiring, the government also surveys households to determine the unemployment rate.

Furloughed federal employees were considered unemployed during the shutdown and thus contributed to the increase in the unemployment rate in October from 7.2 percent to 7.3 percent. Without the furloughs, the unemployment rate would have dropped.

Complicating things, some furloughed employees were counted as still employed. As a result, if they had been properly listed as unemployed, the jobless rate for October could have been higher than 7.3 percent.

But those are temporary anomalies and they won't affect the November unemployment rate.

Even with data showing more hiring in the month, President Barack Obama on Friday stuck with the White House theme that the shutdown "harmed our jobs market."

"The unemployment rate still ticked up and we don't yet know all the data for this final quarter of the year, but it could be down because off what happened in Washington," he said.

The data did have some warnings. Americans' participation in the labor force went down.

"Even factoring out the impact of the shutdown, we have a lot fewer people in the labor force than you'd expect," said Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities and former economic adviser to Vice President Joe Biden. "That pushed the unemployment rate down because they are not looking and it takes away from growth."

Then he apologized for being a two-handed economist:

"I consider the (jobs) report evidence of a resilient American economy on the one hand, but some pronounced remaining weaknesses on the other."

___

Follow Jim Kuhnhenn on Twitter: http://twitter.com/jkuhnhenn .


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Few options for Obama to fix cancellations problem

WASHINGTON — President Barack Obama says he'll do everything he can to help people coping with health insurance cancellations, but legally and practically his options appear limited.

That means the latest political problem engulfing Obama's health care overhaul may not be resolved quickly, cleanly or completely.

White House deputy spokesman Josh Earnest said Friday that the president has asked his team to look at administrative fixes to help people whose plans are being canceled as a result of new federal coverage rules. Obama, in an NBC interview Thursday, said "I am sorry" to people who are losing coverage and had relied on his assurances that if they liked their plan, they could keep it.

The focus appears to be on easing the impact for a specific group: people whose policies have been canceled and who don't qualify for tax credits to offset higher premiums. The administration has not settled on a particular fix and it's possible the final decision would apply to a broader group.

Still, a president can't just pick up the phone and order the Treasury to cut checks for people suffering from insurance premium sticker shock. Spending would have to be authorized by law.

Another obstacle: Most of the discontinued policies appear to have been issued after the law was enacted, according to insurers and independent experts. Legally, that means they would have never been eligible for cancellation protections offered by the statute. Its grandfather clause applies only to policies that were in effect when the law passed in 2010.

More than five weeks after open-enrollment season started for uninsured Americans, Obama's signature domestic policy achievement is still struggling. Persistent website problems appear to have kept most interested customers from signing up. Repairs are underway. Friday the administration said the website's income verification component will be offline for maintenance until Tuesday morning. An enrollment report expected next week is likely to reflect only paltry sign-ups.

Website woes have been eclipsed by the uproar over cancellation notices sent to millions of people who have individual plans that don't measure up to the benefits package and level of financial protection required by the law.

"It was clear from the beginning that there were going to be some winners and losers," said Timothy Jost, a law professor at Washington and Lee University in Virginia, who supports the health overhaul. "But the losers are calling reporters, and the winners can't get on the website."

In the House, a Republican-sponsored bill that would give insurers another year to sell individual policies that were in effect Jan. 1, 2013, is expected to get a floor vote late next week. In the Senate, Louisiana Democrat Mary Landrieu has introduced legislation that would require insurers to keep offering current individual plans. Democrats, who as a group have stood firmly behind the new law so far, may start to splinter if the uproar continues.

The legislation faces long odds to begin with, but it may not do the job even if it passes. The reason: States, not the federal government, regulate the individual insurance market. State insurance commissioners have already approved the plans that will be offered for next year. It may be too late to wind back to where things stood at the beginning of this year.

"It has taken the industry many months to rejigger their systems to comply with the law," said Bob Laszewski, a health care industry consultant. "The cancellation letters have already gone out. What are these guys supposed to do, go down to the post office and buy a million stamps?"

The insurance industry doesn't like the legislative route either. "We have some significant concerns with how that would work operationally," said Robert Zirkelbach, spokesman for the trade group America's Health Insurance Plans.

Behind the political and legal issues, a powerful economic logic is also at work.

Shifting people who already have individual coverage into the new health insurance markets under Obama's law would bring in customers already known to insurers, reducing overall financial risks for the insurance pool.

That's painful for those who end up paying higher premiums for upgraded policies. But it could save money for the taxpayers who are subsidizing the new coverage.

Compared with the uninsured, people with coverage are less likely to have a pent-up need for medical services. At one point, they were all prescreened for health problems.

A sizable share of the uninsured people expected to gain coverage under Obama's law have health problems that have kept them from getting coverage. They'll be the costly cases.

Obama sold the overhaul as a win all around. Uninsured Americans would get coverage and people who liked their insurance could keep it, he said. In hindsight, the president might have wanted to say that you could keep your plan as long as your insurer or your employer did not change it beyond limits prescribed by the government.

Meanwhile, Rep. Darrell Issa, R-Calif., chairman of the House Oversight Committee, said late Friday he had issued a subpoena to Todd Park, Obama's top adviser on technology, to appear before his committee next week. The White House has said Park is too busy trying to fix the health care website to appear.

___

Associated Press writers Julie Pace, David Espo and Kevin Vineys contributed to this report.


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Trans fat doesn't stir much 'nanny state' debate

WASHINGTON — They are among our most personal daily decisions: what to eat or drink. Maybe what to inhale.

Now that the government's banning trans fat, does that mean it's revving up to take away our choice to consume all sorts of other unhealthy stuff?

Salt? Soda? Cigarettes?

Nah.

In the tug-of-war between public health and personal freedom, the Food and Drug Administration's decision to ban trans fats barely rates a ripple.

Hardly anyone defends the icky-sounding artificial ingredient anymore. It was too decades when health activists began warning Americans that it was clogging their arteries and causing heart attacks.

Mostly, Americans' palates have moved on, and so have their arguments over what's sensible health policy and what amounts to a "nanny state" run amok.


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Craft beer makers heading to Mass. Statehouse

BOSTON — Craft beer makers are planning to head to Beacon Hill to oppose a law they say is choking off job growth in the industry.

Members of the Massachusetts Brewers Guild say lawmakers need to update 41-year-old franchise laws they say tether brewers to wholesalers regardless of the wholesaler's performance in distributing and marketing craft beers to restaurants, package stores and bars.

Massachusetts Brewers Guild President Rob Martin says the laws are stifling growth in an industry that employs 1,300 people in Massachusetts

Jim Koch, the founder of the Samuel Adams beer company, and Dan Kenary, co-founder of the Harpoon Brewery, are also planning to testify before the Committee on Consumer Protection and Professional Licensure.

The hearing is scheduled for Tuesday at 1 p.m. at the Statehouse.


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Brazil's OSX to seek bankruptcy protection

SAO PAULO — OSX Brasil S.A, the shipbuilding company of Brazil's one-time richest man Eike Batista, said Friday evening it will file for bankruptcy protection in a Rio de Janeiro court.

The company said on its website that its board of directors agreed Friday to file for bankruptcy protection and that a special meeting of shareholders will be held on Nov. 28 to ratify the decision.

Ten days ago, Batista's OGX oil company filed for bankruptcy protection after it failed to reach an agreement to delay payment to holders of $3.6 billion in bonds.

According to Vanessa Guerra, an OSX press officer, the shipbuilding company owes the equivalent of $2.3 billion to state and private banks as well as to suppliers.

If the court accepts OSX's request, the company will have 60 days to come up with a restructuring plan. Creditors will then have 180 days to decide if they accept the plans.

For Adriano Pires, one of Brazil's top energy analysts, the OGX and OSX bankruptcy protection filings hurt Brazil's image overseas "at a time when the country needs to attract investments for its oil industry as well as for infrastructure projects like highways, airports, ports, and railways."

He said that in the minds of foreign investors, the OSX and OGX filings increased their "uncertainty and their fears of the rising risks involved in investing in the country."

Cassia Pontes, an oil industry analyst with the Rio-based Lopes Filho e Associados consulting firm, has said that OSX was in a "very worrisome" situation because it was created to supply oil tankers and platforms to Batista's petroleum concern."

"This was the company's business plan and it started collapsing when it was learned that OGX's oil production had fallen short of expectations," she said, adding that OSX depended on Batista's oil company for "most if not all of its revenue. They are like conjoined twins."

OGX was the backbone of Batista's empire, which includes steel, mining, energy, infrastructure and real estate companies.

OGX failed to deliver on promises to produce large amounts of offshore oil even though it has reported many finds since 2010, when its market value reached $34 billion. In the first half of this year, the company averaged output of just 8,500 barrels a day and racked up more than $2.5 billion in losses.


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Journalists in Syria face growing risk of kidnap

BEIRUT — Behind a veil of secrecy, at least 30 journalists have been kidnapped or have disappeared in Syria — held and threatened with death by extremists or taken captive by gangs seeking ransom.

The widespread seizure of journalists is unprecedented, and has been largely unreported by news organizations in the hope that keeping the kidnappings out of public view may help to negotiate the captives' release.

The New York-based Committee to Protect Journalists says at least 30 journalists are being held and 52 have been killed since Syria's civil war began in early 2011. The group also has documented at least 24 other journalists who disappeared earlier this year but are now safe. In a report this week, Paris-based Reporters Without Borders cited higher figures, saying at least 60 "news providers" are detained and more than 110 have been killed.

The discrepancy stems from varying definitions of what constitutes a journalist because much of the reporting and news imagery coming out of Syria is not from traditional professional journalists. Some of those taken have been activists affiliated with the local "media offices" that have sprouted up across opposition-held territory.

Only 10 of the international journalists currently held have been identified publicly by their families or news organizations: four French citizens, two Americans, one Jordanian, one Lebanese, one Spaniard and one Mauritanian. The remaining missing are a combination of foreign and Syrian journalists, some of whose names have not been publicly disclosed due to security concerns.

Groups like the Committee to Protect Journalists are alarmed by the kidnappings.

While withholding news of abductions is understandable in many cases, especially with lives at stake, the organization says, this has also served to mask the extent of the problem.

"Every time a journalist enters Syria, they are effectively rolling the dice on whether they're going to be abducted or not," said Jason Stern, a researcher at CPJ.

Jihadi groups are believed responsible for most kidnappings since the summer, but government-backed militias, criminal gangs and rebels affiliated with the Western-backed Free Syrian Army also have been involved with various motives.

By discouraging even experienced journalists from traveling to Syria, the kidnappings are diminishing the media's ability to provide unbiased on-the-ground insights into one of the world's most brutal and combustible conflicts.

And those who do go into the country from outside appear often to be among the less-prepared and less-protected — which in turn increases the chances of capture, deepening the fears and compounding the problem.

The kidnappings have helped shift the narrative of the war in a wider sense: What might have at first seemed to many like an idealistic rebellion against a despotic ruler now is increasingly viewed as a chaotic affair in which both anti-Western extremists and criminal gangs have gained dangerous influence

"It is vital that journalists witness and tell the story of the Syrian civil war," said John Daniszewski, senior managing editor for international news at The Associated Press. "However, the impunity with which journalists are attacked and kidnapped in this conflict means that we must be doubly cautious. It is not an arena for novices, and extreme care needs to be exercised to obtain the news. At the same time, actors in the civil war must acknowledge and protect the right of journalists to cover it fairly and accurately as a basic human right."

The spate of kidnappings has drawn comparisons to Lebanon during its vicious 1975-90 civil war, when Westerners, including then-AP Middle East Correspondent Terry Anderson, were taken captive by Muslim extremists and held for long periods.

In Iraq, 150 journalists were killed between the U.S. invasion in 2003 and the departure of American troops in 2011 — a rate similar to the CPJ's figures for Syria — but the numbers of abducted journalists was smaller. Reporters Without Borders said it registered 93 kidnappings of journalists there from 2003 to 2010 — a far lower rate than it found in Syria. In Libya, a handful of journalists were detained during the war.

Stern said the kidnappings in Syria are unprecedented in scale: "Simply no other country comes close."

Addressing the U.N. Security Council at a meeting in July, AP Executive Editor Kathleen Carroll, vice chairwoman of the Committee to Protect Journalists, said reporters serve as the public's eyes and ears in conflict situations by going to places and asking questions that most people cannot.

"An attack on a journalist is a proxy for an attack on the ordinary citizen, an attack on that citizen's right to information about their communities and their institution" and their world, she said.

Richard Engel, the chief foreign correspondent for U.S. television network NBC who was kidnapped by pro-Assad militiamen in northern Syrian and held for five days in December 2012, said journalists must reflect long and hard before going to the country.

"Because right now, if you go to into the rebel-held or contested areas in northern and eastern Syria, there is a very sizable percentage that you're not going to make it out alive," he said.

While reporting in Syria has always been a dangerous business, the risk has evolved during the uprising. Early on, President Bashar Assad's government expelled foreign journalists covering anti-government protests, including an AP team in Damascus. Scores of Syrian journalists were imprisoned. As rebels began seizing territory, some rebel factions began detaining journalists as well, often on unfounded accusations that they were spies.

Abductions increased significantly in recent months, as extremist groups grew more powerful in some areas.

Most kidnappings since the summer have taken place in rebel-held territories, particularly in chaotic northern and eastern Syria, where militant al-Qaida-linked groups hold influence. Among the most dangerous places is the northeastern city of Raqqa, which was taken over by al-Qaida militants shortly after it became the first city to fall entirely into rebel hands; the eastern Deir el-Zour province; the border town of Azaz, and the corridor leading to Aleppo, once a main route for journalists going into Syria.

There are no reliable estimates of how many journalists are held by the Syrian government, which routinely rounds up writers, activists and reporters who fail to toe the official line.

Local journalists have taken the brunt of the violence. Of the 52 documented by CPJ as killed, all but five were Syrian. Among the foreigners who lost their lives covering battles were French TV reporter Gilles Jacquier, French photographer Remi Ochlik, American journalist Marie Colvin with Britain's Sunday Times and Japanese journalist Mika Yamamoto.

Often the cases of abduction are not reported by media organizations at the request of the families or employers. News organizations on a case-by-case basis are inclined to respect such requests, regardless of the identity of the person abducted, if they are persuaded that publication would increase the danger for the victim.

That, in turn, makes the extent of the problem less visible to the public.

Peter Bouackert, emergency director at Human Rights Watch, said an unintended consequence of such a blackout is that journalists may be less aware of the dangers they face.

In some cases, rebels acting as middle men have offered to "buy" hostages to use for their own purposes, activists say. Unconfirmed reports say at least some kidnappings are done to raise money for weapons.

In some cases, the captors are thought to be holding hostages for ransom, or as pawns for negotiations.

Experts say religious extremists pose a particular danger because they kidnap for ideological reasons, and are less likely to negotiate or yield to foreign pressure.

Bouackert says almost all kidnappings since the summer have involved al-Qaida-affiliated militants and remain unresolved with no ransom demands or discussion about releases.

"They are basically being held hostage as insurance against any future Western intervention against extreme jihadi groups," said Bouackert, who specializes in cases involving missing journalists.

In published accounts of their captivity, some freed journalists wrote of trusted rebels and fixers who betrayed them, and of hard-core Islamic fighters who psychologically and physically tortured them.

"At first they kept accusing me of being a CIA agent, and in order to break me pretended to execute me four times. At the end it was all about money," said Jonathan Alpeyrie, a French-American photographer held in northern Syria for 81 days by Islamic rebels until a benefactor paid $450,000 on his behalf.

Alpeyrie, 34, has reported from Afghanistan, Egypt, Libya, Pakistan and Somalia. He was abducted on his third trip to Syria, apparently betrayed by a fixer. He was freelancing for the New York-based agency Polaris Images when kidnapped.

"I will never go back to Syria," he said.

Among the longest-held captives are American freelance journalists Austin Tice, missing since August 2012, and James Foley, who disappeared in November 2012. Tice, who was one of few journalists reporting from Damascus when he vanished, is suspected of being held by the Syrian government, although his family has said they are uncertain who is holding their son. There has been no information on Foley.

More recent abductees include Spanish journalist Marc Marginedas, who has not been seen since his car was stopped by armed jihadists on Sept. 4 near the western town of Hama, and French journalists Nicolas Henin, Pierre Torres, Didier Francois and Edouard Elias — all missing since the summer.

American freelance photographer Matthew Schrier, who escaped in July from an Aleppo basement after seven months in captivity, said his captors tortured him for his credit card and bank passwords and used his money to shop on eBay.

Among the most recent Syrian victims was Rami Razzouk, working for a Syrian radio station that reports critically on al-Qaida-linked militants.

In a harrowing account of his 152 days in Syrian rebel captivity, Italian journalist Domenico Quirico wrote in the daily La Stampa of a revolution gone astray.

"In Syria, I discovered the Land of Evil," he wrote.

___

Associated Press writer Verena Dobnik in New York City contributed to this report.


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Michigan growers trying to get apples to doze off

CENTRAL LAKE, Mich. — This year's Michigan apple crop is expected to be 10 times as plentiful as last year's puny output.

While the big bounce-back is welcomed in the nation's third-largest apple-producing state, the bounty presents its own challenges: How do growers, packers and processors maximize storage to avoid flooding stores with the fruit, thus crashing the market and lowering growers' profits?

The answer, as it turns out, lies in getting the apples to go to sleep — and stay that way.

Two techniques — one relatively new, the other a play on time-tested refrigeration — are keeping apples fresh and flavorful longer than ever, with some varieties "sleeping" for as many as 9 to 10 months to keep consumers happy until the next harvest.

A fairly recent innovation called 1-methylcyclopropene, or 1-MCP, temporarily stops apples' ability to respond to their own cues for ripening. They are sealed inside a room where blowing fans spread the 1-MCP compound in a gaseous form, so it can work its way inside the fruit.

Known commercially as "SmartFresh," it "has been a game-changer for apple storage and is partly responsible for the up-trending consumption of apples in the U.S. over the last 5 to 10 years," Michigan State University horticulture professor Randy Beaudry said. He is involved in updating a traditional apple refrigeration method known as "controlled-atmosphere storage," or "CA," to double the time Honeycrisp apples can be stored.

In a typical year, Michigan's 9.2 million trees produce 20 million to 23 million bushels, pumping up to $900 million into the economy.

The state's 2013 harvest is projected to be around 30 million bushels, which roughly equals out to 382 medium-sized apples for every state resident; 12 for every American.

Yet, its 2012 crop was about 90 percent smaller, the biggest apple crop loss since the 1940s, according to the Michigan Apple Committee, a nonprofit funded by the state's growers. Apple trees bloomed early because of an extraordinary heat wave in March, followed by a series of frosts and freezes that killed most of the blossoms.

This year has been a different story altogether.

"We've had very excellent yields per acre. They're off the charts," said King Orchards owner John King. He bought the orchard, located in Central Lake in Michigan's northwestern Lower Peninsula, three decades ago. "This year we were blessed."

In fact, the Michigan apple industry set new shipment records two weeks in a row in October, according to the USDA-MDA Market News Service: 411,973 boxes of apples the week of Oct. 5 and 414,702 boxes the following week. The state distributes to 26 states and 18 countries.

The rebound happened partly because of favorable weather conditions and well-rested trees.

While fruit is growing on an apple tree, buds for the following crop already are growing, said Amy Irish-Brown, a Michigan State University extension educator. With so many trees producing no fruit in 2012, the nutrients they absorbed were allocated this year to the developing buds — especially those with the potential to produce fruit, she said.

As King, whose orchard produced only 30 percent of its typical apple crop last year, put it, "The trees had plenty of reserves for having the year off." So, the experienced grower bought 240 additional apple bins in anticipation for the bounty of 2013.

Storing all of those apples, however, is an ever-changing process, BelleHarvest Sales Inc. president and CEO Mike Rothwell said. The West Michigan company has stored and marketed Michigan apples for nearly half a century and works with 150 growers.

The company has 30 CA storage rooms in Belding. Last year, it used two of those rooms. This year, they're all full.

"Technology changes all the time. A lot of research is done," he said. "What you tend to do is fine-tune the atmospheric levels in the room so they are absolutely optimal."

King's brother, Jim, who co-owns the family business, said they've had mixed results with SmartFresh, which appears to work better with some varieties than others.

But the technology holds great promise for lengthening shelf life at a time when the U.S. apple industry needs every edge to compete with producers from other countries, such as Brazil and New Zealand, he said.

"If SmartFresh can keep these apples crunchier for a longer time ... and help us keep fresh apples on the shelves," Jim King said, "it will be better for the entire industry and for consumers."

Now that Michigan's picking season is winding down — it typically runs from August through October, but has spilled in to early November — it's time to make the transition, as John King says, from well-rested trees to napping apples.

"We're lulling the apples to sleep."

___

Householder reported from Detroit.


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Harvard's deficit soars to $34 million

BOSTON — Harvard University finance officials are pledging to manage costs better and pursue innovative revenue strategies after its deficit soared to $34 million in the most recent fiscal year, compared to a $7.9 million shortfall the previous year.

A financial report released Friday says the school saw revenues jump 5 percent to $4.2 billion, due largely to the increased annual distribution from its hefty $32.7 billion endowment.

Revenue also was bolstered by a 17 percent increase in gifts for current use, from $289 million in the previous fiscal year to $339 million in the most recent year.

Operating expenses for the nation's oldest school rose 6 percent to $4.2 billion. Benefits, wages and other compensation expenses accounted for about half of expenses.


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US reporter held by Venezuelan authorities

CARACAS, Venezuela — The Miami Herald journalist detained since Thursday by Venezuelan security forces while reporting on the country's economic crisis is expected to be released over the weekend, the newspaper said.

Jim Wyss, the Herald's Andean bureau chief, was detained by the National Guard in San Cristobal, a western city near the border with Colombia. The Herald said in a story on its website that Venezuelan journalists reported seeing him in custody but were barred from approaching him.

After a second night in custody without authorities providing any information about the detention, Wyss' predicament appeared to have improved Saturday. The Herald's World Editor John Yearwood flew to Caracas Saturday to usher the reporter out of the country, the newspaper said in the story. U.S. Embassy officials are also working on his release.

"We are eager to bring this issue to a close," the Herald's Executive Editor Aminda Marques Gonzalez Marques said in a statement. "Our main concern continues to be his safety and welfare. We are working on all fronts to secure his release and are optimistic it will happen soon."

Authorities haven't said if Wyss is facing charges or why he was detained. Nor did President Nicolas Maduro mention the case during a four-hour televised speech Friday night.

The Inter American Press Association, in joining the Herald's call for the reporter's immediate release, said in a statement that he had been transferred Friday to Caracas and was being held in solitary confinement.

Wyss, who is based in Bogota and has made many trips to Venezuela, traveled to San Cristobal to report on next month's municipal elections, which are taking place amid an economic crisis marked by 54 percent inflation and shortages of staples such as milk and toilet paper.

Maduro blames hoarding and speculation by the private sector, and accuses right-wing agitators and the U.S. government of waging an "economic war" to destabilize his government. However, economists say that only scrapping the decade-old controls imposed by the late Hugo Chavez can curb a sharp slide in the currency's value on the black market.

Journalists have encountered harassment before while reporting on the crisis. Last week, three reporters for Caracas newspaper Diario 2001 were detained, and one allegedly beaten by police, after witnessing a group of frenzied shoppers break through a barricade to receive a government-provided Christmas food basket.

Government officials also regularly vilify in public members of the international media as opponents of the Chavista revolution. Still, except for the six-week jailing of an American documentary filmmaker earlier this year, the detention of foreign journalists for more than a few hours is almost unknown.

Wyss himself was nearly barred from entering Venezuela shortly before Chavez's death in March, according to the Herald report.

Claudio Paolillo, chairman of a press freedom committee at the Inter American Press Association, said he was bewildered by Wyss' detention, calling it a "new demonstration of intolerance by a regime that day after day shows its contempt for the work of journalists."

___

Associated Press writers Ben Fox in Miami and Jorge Rueda in Caracas contributed to this report.


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New casino not a sure bet among Saratoga residents

SARATOGA SPRINGS, N.Y. — The planned expansion of casino gambling in New York state isn't a sure bet in Saratoga Springs despite its famous race track and a long history with wagering.

Most voters in Saratoga County said no to last week's referendum to allow seven Las Vegas-style casinos to be built, including four upstate. Saratoga Springs is a likely front-runner to land one of them.

The city is already home to the seasonal Saratoga Race Course and a year-round racino. But some residents and business owners are opposed to expanding the racino into a Las Vegas-style casino with table games such as roulette. They say it will detract from the city's charm and hurt businesses in Saratoga's thriving downtown.


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