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SEC fraud case against ex-Goldman trader Tourre in homestretch

By Nate Raymond and Katya Wachtel

NEW YORK (Reuters) - Testimony ended Monday in the civil fraud case of Fabrice Tourre, with lawyers for former Goldman Sachs trader not calling any witnesses before the U.S. Securities and Exchange Commission's case goes to a Manhattan federal jury.

Tourre's lawyers had been expected to call witnesses including hedge fund billionaire John Paulson to testify on his behalf.

Instead, his lawyers asked the presiding judge to take the case away from the jury and rule in Tourre's favor, which, as expected, she rejected.

"There is a lot of evidence the jury is entitled to weigh," U.S. District Judge Katherine Forrest said.

Closing arguments will begin on Tuesday morning, and Forrest said jury deliberations may begin on Wednesday.

The SEC accused Tourre of not disclosing to investors that Paulson's hedge fund firm, Paulson & Co Inc, selected mortgage securities tied to a 2007 deal called Abacus 2007-AC1 and planned to bet against it.

The SEC also said Tourre misled ACA Capital Holdings Inc, the company brought in to select assets linked to Abacus, into believing Paulson would be an equity investor in the $2 billion synthetic collateralized debt obligation offering.

Investors in Abacus lost about $1 billion, while Paulson made about that same amount betting against it.

Tourre has denied wrongdoing. Goldman Sachs Group Inc, originally a co-defendant, agreed in 2010 to settle with the SEC for $550 million without admitting wrongdoing.

The SEC rested its case Monday after playing a video deposition of Michael Nartey, a former Goldman employee in London who marketed Abacus notes to IKB Deutsche Industriebank AG, one of the investors the SEC says was burned by the deal.

In total, the SEC introduced testimony from 11 witnesses who appeared live or gave depositions.

Tourre testified for three days. While his lawyers did not call any other witnesses, eight the SEC called were on Tourre's witness list too.

Jurors may consider Tourre's decision not to call other witnesses a plus for the defense, said Robert Mintz, a former federal prosecutor and now a partner at McCarter & English.

"It's a sign that the defense believes that the SEC has not met its burden of proof," he said.

Paulson at the time of the Abacus deal was engaged in a broader bet against the U.S. housing market in 2007. The bet earned him Wall Street fame and billions of dollars.

As recently as July 19, Tourre's defense team had said it planned to call Paulson. Testimony had been expected to continue through at least much of this week.

The case is SEC v. Tourre, U.S. District Court, Southern District of New York, No. 10-03229.

(Reporting By Katya Wachtel and Nate Raymond; Editing by Lisa Von Ahn and Steve Orlofsky)

Source: http://news.yahoo.com/paulson-not-testify-tourre-trial-143717471.html

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After tweaks, Facebook unleashes 'Graph Search' on the world

Facebook

3 hours ago

Image: Mark Zuckerberg

Rosa Golijan / NBC News

Facebook CEO Mark Zuckerberg unveils the "Graph Search" feature during a January news conference. After running into privacy issues, the company is finally making the feature available to all English-language users.

NEW YORK ? Users who may have grown frustrated with Facebook's rudimentary search feature are getting an updated version designed to make it easier to find people, places and photos on the site.

Facebook unveiled its social search tool in January, but only made it available to a small fraction of its 1.1 billion users, as its engineers continued to tweak and test it. Over the next few weeks, starting on Monday, the company is rolling out the social search tool, called "Graph Search," to everyone whose language is set to U.S. English.

Unlike searches on Google, which are good for finding specific things like roasted kale recipes or Mizuno running shoes, Facebook's tool is most useful in unearthing information about your social circles. Graph Search lets you find friends who live in San Francisco who are vegan. Friends of friends who live near you and like hiking. Photos of your boyfriend taken before you met him in 2010. Nearby restaurants that your friends like ? and so on.

Searching for embarrassment
But soon after Facebook launched the tool, the Internet had a field day with less innocuous and more embarrassing queries, showing just how much information people reveal about themselves on the site, intentionally or not. Care to find out which brand of condoms your friends prefer? Graph Search might tell you.

A blog called actualfacebookgraphsearches.tumblr.com posted a collection of searches ranging from "married people who like prostitutes" to "current employers of people who like racism." Both yielded more than 100 people.

While it is possible that some of those Facebook users are fully aware that what they've shared is easily searchable, it is likely that some are not. It's easy to click "like" on a page and forget about it, and it's even easier to assume that no one will search through your photos from party days at the Burning Man festival five years ago.

Notification planned
To avoid any unpleasantness, Facebook plans to notify users that it's "getting easier for people to find photos and other things you've shared with them" along with a reminder that they can check "who can see my stuff" under their privacy settings.

"The goal is to avoid bad surprises," said Nicky Jackson Colaco, privacy and safety manager at Facebook. But she stressed Facebook's view that the search tool "indexes information differently than we have ever been able to do before, in a really positive way."

It's easier, for example, to find a long-lost classmate with a common name, or to find common interests with friends of friends.

Facebook does not currently show users ads based on what they are searching for, but the company may do in the future. As Google has shown, it's a lucrative business. Research firm eMarketer estimates that Google will take nearly 42 percent of all U.S. digital ad spending this year, well above Facebook's share of less than 7 percent.

With its new search tool, Facebook is clearly trying to divert traffic and ad spending from its rival. Whether this will work will become more clear as more people begin using it.

More about Graph Search:

Source: http://feeds.nbcnews.com/c/35002/f/663301/s/2e56ca47/l/0L0Snbcnews0N0Ctechnology0Cafter0Etweaks0Efacebook0Eunleashes0Egraph0Esearch0Eworld0E6C10A560A773/story01.htm

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US economy adds 195K jobs; unemployment 7.6 pct.

In this Monday, June 24, 2013, photo, a job seeker gets her resume critiqued at a career fair, in King of Prussia, Pa. U.S. employers added a robust 195,000 jobs in June and many more in April and May than previously thought. The job growth raises hopes for a stronger economy in the second half of 2013. (AP Photo/Matt Slocum)

In this Monday, June 24, 2013, photo, a job seeker gets her resume critiqued at a career fair, in King of Prussia, Pa. U.S. employers added a robust 195,000 jobs in June and many more in April and May than previously thought. The job growth raises hopes for a stronger economy in the second half of 2013. (AP Photo/Matt Slocum)

In this June 21, 2013 photograph a sign seeking drivers is posted outside the Pearl, Miss., customer service center for Central Transport, a long haul transport trucking company. U.S. employers added a robust 195,000 jobs in June and many more in April and May than previously thought. The job growth raises hopes for a stronger economy in the second half of 2013. (AP Photo/Rogelio V. Solis)

(AP) ? U.S. employers added a robust 195,000 jobs in June and many more in April and May than previously thought. The job growth suggests a stronger economy and makes it more likely the Federal Reserve will slow its bond purchases as early as September.

The unemployment rate remained 7.6 percent because more people started looking for jobs ? a healthy sign ? and some didn't find them. The government doesn't count people as unemployed unless they're looking for work.

The U.S. job market is showing surprising strength and resilience in the face of tax increases, federal spending cuts and economic weakness overseas. Employers have added an average 202,000 jobs for the past six months, up from 180,000 in the previous six.

June's job gain was fueled by consumer spending and the housing recovery. Hiring was especially strong among retailers, hotels, restaurants, construction companies and financial services firms.

"The numbers that we're seeing are more sustainable than we thought," said Paul Edelstein, U.S. economist at IHS Global Insight, a forecasting firm. "We're seeing better job numbers, the stock market is increasing and home prices are rising."

Pay also rose sharply last month and is outpacing inflation, the Labor Department's monthly jobs report Friday showed. Average hourly pay rose 10 cents in June to $24.01. Over the past 12 months, it's risen 2.2 percent. Over the same period, consumer prices have increased 1.4 percent.

Stocks rose sharply in early afternoon trading. The Dow Jones industrial average was up 85 points. And the yield on the 10-year Treasury note jumped from 2.56 percent to 2.71 percent, its highest level since August 2011. That's a sign that investors think the economy is improving.

Friday's report showed the economy added 70,000 more jobs in April and May than the government had previously estimated ? 50,000 in April and 20,000 in May.

Further job growth could lower the unemployment rate and help the economy rebound after a weak start this year. If so, the Fed would likely scale back its bond purchases before the year ends.

The Fed has been buying $85 billion worth of Treasury and mortgage bonds a month since late last year. The purchases pushed long-term rates to historic lows, fueled a record-breaking stock market rally and encouraged consumers and businesses to borrow and spend. They've also helped support an economy that's had to absorb federal spending cuts and a Social Security tax increase that's reduced consumer paychecks this year.

Friday's report contained one element of concern: Many of the job gains were in generally lower-paying industries, a trend that emerged earlier this year. The hotels, restaurants and entertainment industry added 75,000 jobs in June. This industry has added an average of 55,000 jobs a month this year, nearly double its 30,000 average in 2012. Retailers added 37,000. Temporary jobs rose 10,000.

The health care industry added 20,000 and construction 13,000. But manufacturing shed 6,000.

Many of the new jobs were part time. The number of Americans who said they were working part time but would prefer full-time work jumped 322,000 to 8.2 million ? the most in eight months.

Last month's job growth came solely from the private sector, particularly services firms. Government jobs fell 7,000, mostly at the federal level. The federal government has shed 65,000 jobs in the past 12 months. Some of that decline likely reflects the federal budget cuts that kicked in March 1.

Declining government employment has been a drag on the job market since the recession ended four years ago. In a typical recovery, governments typically add at least 20,000 jobs a month.

Solid hiring in the private sector is pushing up wages, even in some lower-paying industries. Average hourly wages for retail employees rose 6 cents in June to $16.64 and have risen nearly 2 percent in the past year.

The overall increase in pay is "the standout feature of this report," said Ryan Sweet, an economist at Moody's Analytics. The low inflation rate also helps consumers, he noted.

"The tide is continuing to turn for the consumer," Sweet said. "The consumer is going to continue to be able to shoulder this recovery."

The unemployment rate is derived from a survey of households, which found that 177,000 more people started looking for jobs in June. Most found them. The increase suggests that Americans think their job prospects have brightened.

But because some of the job seekers didn't find work right away, the number of unemployed was largely unchanged at 11.8 million.

The 195,000 job gain for June is calculated from a separate survey of employers.

The percentage of Americans either working or actively looking for work rose for a second straight month to 63.5 percent. This is known as the "labor force participation rate." The participation rate has been generally declining since peaking at 67.3 percent in 2000. That's partly the result of baby boomers retiring and leaving the workforce.

Despite the solid pace of hiring in June, the economy is growing only sluggishly. It expanded at a 1.8 percent annual rate in the January-March quarter. Most analysts expect growth at roughly the same subpar rate in the April-June quarter.

Weak economies overseas cut demand for U.S. exports in May. That led some economists to predict that growth in the second quarter might be slower than forecast.

Still, many areas of the economy are improving. The Fed's low-rate policies have led more Americans to buy homes and cars. They also helped boost stock and home prices in the first half of the year, increasing wealth and lifting consumers' confidence to its highest level in 5? years.

Auto sales in the January-June period topped 7.8 million, their best first half since 2007, according to Autodata Corp. and Ward's AutoInfoBank. Sales of previously occupied homes exceeded 5 million in May, the first time that's happened since November 2009. New-home sales rose at their fastest pace in five years.

Though fewer exports have hurt manufacturing, factories fielded more orders in May. And a measure of business investment rose for a third straight month.

Diane Swonk, chief economist at Mesirow Financial, said she thinks the improving job market will lead the Fed to taper its monthly bond purchases starting in September from $85 billion to $65 billion. She predicts the Fed will reduce its monthly purchases by an additional $20 billion in December.

Swonk said she thinks the Fed will end its bond buying altogether in the second half of 2014.

___

AP Business Writer Martin Crutsinger contributed to this report.

___

Follow Chris Rugaber on Twitter at http://Twitter.com/ChrisRugaber

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2013-07-05-Economy/id-4a7eee93da194e54a768d43b8e528f17

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শনিবার, ৬ জুলাই, ২০১৩

South American leaders demand apology in plane row

Venezuela's President Nicolas Maduro, left, Ecuador's President Rafael Correa, right, and Bolivia's President Evo Morales acknowledge supporters during a welcome ceremony for presidents attending an extraordinary meeting in Cochabamba, Bolivia, Thursday , July 4, 2013. Leaders of Uruguay, Ecuador, Surinam, Argentina and Venezuela are meeting in Bolivia Thursday in support of Morales, who said said Thursday that the rerouting of his plane in Europe, over suspicions that National Security Agency leaker Edward Snowden was on board was a plot by the U.S. to intimidate him and other Latin American leaders. (AP Photo/Juan Karita)

Venezuela's President Nicolas Maduro, left, Ecuador's President Rafael Correa, right, and Bolivia's President Evo Morales acknowledge supporters during a welcome ceremony for presidents attending an extraordinary meeting in Cochabamba, Bolivia, Thursday , July 4, 2013. Leaders of Uruguay, Ecuador, Surinam, Argentina and Venezuela are meeting in Bolivia Thursday in support of Morales, who said said Thursday that the rerouting of his plane in Europe, over suspicions that National Security Agency leaker Edward Snowden was on board was a plot by the U.S. to intimidate him and other Latin American leaders. (AP Photo/Juan Karita)

Ecuador's President Rafael Correa, center, waves to journalists upon his arrival to the airport accompanied by Ecuador's Foreign Minister Ricardo Patino, right, and Bolivia's Foreign Minister David Choquehuanca in Cochabamba, Bolivia, Thursday, July 4, 2013. Correa said that the situation lived by Bolivian President Evo Morales is very serious and is in Cochabamba for an extraordinary meeting of South American leaders to discuss the rerouting of Morales' plane in Europe, over suspicions that National Security Agency leaker Edward Snowden was on board. (AP Photo/Juan Karita)

Ecuador's President Rafael Correa, center, reviews a honor guard upon his arrival to the airport in Cochabamba, Bolivia, Thursday, July 4, 2013. Correa said that the situation lived by Bolivian President Evo Morales is very serious and is in Cochabamba for an extraordinary meeting of South American leaders to discuss the rerouting of Morales' plane in Europe, over suspicions that National Security Agency leaker Edward Snowden was on board. (AP Photo/Juan Karita)

Venezuela's President Nicolas Maduro speaks upon his arrival to the airport in Cochabamba, Bolivia, Thursday, July 4, 2013. Maduro is in Cochabamba for an extraordinary meeting of South American leaders to show support for Bolivian President Evo Morales, whose plane was rerouted in Europe, over suspicions that National Security Agency leaker Edward Snowden was on board. (AP Photo/Juan Karita)

Venezuela's President Nicolas Maduro, front left, reviews an honor guard upon his arrival to the airport in Cochabamba, Bolivia, Thursday, July 4, 2013. Maduro is in Cochabamba for an extraordinary meeting of South American leaders to show support for Bolivian President Evo Morales, whose plane was rerouted in Europe, over suspicions that National Security Agency leaker Edward Snowden was on board. (AP Photo/Juan Karita)

(AP) ? South America's leftist leaders rallied to support Bolivian President Evo Morales after his plane was rerouted amid suspicions that NSA leaker Edward Snowden was on board and demanded an apology from France, Italy, Portugal and Spain.

The presidents of Argentina, Ecuador, Suriname, Venezuela and Uruguay joined Morales in the Bolivian city of Cochabamba late Thursday to address the diplomatic row. Morales used the gathering to warn that he would close the U.S. Embassy in Bolivia if necessary.

Morales again blamed Washington for pressuring European countries to refuse to allow his plane to fly through their airspace on Tuesday, forcing it to land in Vienna, Austria, in what he called a violation of international law. He had been returning from a summit in Russia during which he had suggested he would be willing to consider a request from Snowden for asylum.

Latin American leaders were outraged by the incident, calling it a violation of national sovereignty and a slap in the face for a region that has suffered through humiliations by Europe and several U.S.-backed military coups.

"United we will defeat American imperialism. We met with the leaders of my party and they asked us for several measures and if necessary, we will close the embassy of the United States," Morales said in the city where he started his political career as a leader of coca leaf farmers. "We do not need the embassy of the United States."

Morales' government has had a conflictive relationship with Washington.

It expelled the U.S. ambassador and agents of the U.S. Drug Enforcement Administration in 2008 for allegedly inciting the opposition. The Andean nation restored full diplomatic ties with the U.S. in 2011. But relations soured again amid mutual distrust on drug war politics and hit an especially low point after Secretary of State John Kerry referred to Latin America as Washington's "backyard" in April 2013.

Morales expelled the U.S. Agency for International Development in May for allegedly seeking to undermine his government.

In a joint statement read after the summit, the presidents also said they would back Bolivia's official complaint with the U.N. Human Rights Commission

Ecuadorean President Rafael Correa said that he and other leaders were offering full support to Morales following the rerouting of the plane, calling it an aggression against the Americas.

"We're not going to accept that in the 21st century there's first, second and third rate countries," Correa said.

"The leaders and authorities in Europe have to take a lesson in history and understand that we're not 500 years behind. This Latin America of the 21st century is independent, dignified and sovereign."

Venezuelan President Nicolas Maduro protested alleged attempts by Spanish officials to search the Bolivian presidential plane and accused the CIA of encouraging several European countries to deny the presidential plane their airspace.

"A minster of one of those European governments told me personally that it was the CIA who gave the order to the aeronautical authorities, the one who gave the alert that Snowden was on the plane," he said at a rally at a sports arena ahead of the summit. "The CIA is more powerful that governments."

Argentine President Cristina Fernandez said Latin Americans treasured freedom after fighting for their independence from Europe in the 19th century and then surviving Washington's 20th-century history of backing repressive regimes in the Americas.

She then demanded an apology for the plane ordeal.

"I'm asking those who violated the law in calm but serious manner, to take responsibility for the errors made, it's the least they can do," Fernandez said. "To apologize for once in their life, to say they're sorry for what they've done."

Morales has said that while the plane was parked in Vienna, the Spanish ambassador to Austria arrived with two embassy personnel and they asked to search the plane. He said he denied them permission.

Morales, long a fierce critic of U.S. policy toward Latin America, received a hero's welcome in an airport in the Bolivian capital of La Paz late Wednesday night. His return followed the dramatic, unplanned 14-hour layover in Vienna.

Bolivia's government said France, Spain and Portugal refused to let the president's plane through their airspace because of suspicions that Snowden was with Morales.

Ahead of the meeting, Morales had said that his ordeal was part of a plot by the U.S. to intimidate him and other Latin American leaders and urged European nations to "free themselves" from the U.S.

France sent an apology to the Bolivian government. But Morales said "apologies are not enough because the stance is that international treaties must be respected."

Spain's Foreign Affairs Minister Jose Manuel Garcia-Margallo said his country did not bar Morales from landing in its territory.

Amid the tensions, the U.S. embassy in La Paz cancelled Independence Day celebrations scheduled for Thursday. In the eastern city of Santa Cruz, Bolivian government sympathizers painted protest slogans on the doors of the American consulate.

Morales said he never saw Snowden when he was in Russia, and that Bolivia had not received a formal request for asylum for him.

Bolivia has said that it will summon the French and Italian ambassadors and the Portuguese consul to demand explanations.

Despite the complaints, there were no signs that Latin America leaders were moving to bring Snowden to the region that had been seen as the most likely to grant him asylum.

Although Latin American presidents sympathized with Morales and condemned his ordeal, several key regional leaders missed the summit.

Brazil was represented at the meeting by President Dilma Rousseff's top international adviser but Foreign Minister Antonio Patriota missed the summit because he is attending meetings in Europe.

The presidents of Colombia, Chile and Peru, who have strong ties to the U.S., did not attend.

It's still unclear whether European countries did block the plane and, if so, why. French, Spanish and Portuguese officials have all said the plane was allowed to cross their territory.

The emergency stop in Austria may have been caused by a row over where the plane could refuel and whether European authorities could inspect it for signs of Snowden.

The U.S. has declined to comment on whether it was involved in any decision to close European airspace, saying only that "US officials have been in touch with a broad range of countries over the course of the last 10 days," about the Snowden case.

"The message has been communicated both publicly and privately," State Department spokeswoman Jen Psaki said Wednesday. "He should be returned to the United States."

Snowden remains out of public view, believed to be stuck in a Moscow airport transit area, seeking asylum from one of more than a dozen countries.

__

Associated Press writers Carlos Valdez and Paola Flores in La Paz, Bolivia, Vivian Sequera in Bogota, Colombia, Marco Sibaja in Brasilia, Brazil, Bradley Brooks in Sao Paulo, Brazil and Luis Andres Henao in Santiago, Chile contributed to this report.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2013-07-05-NSA%20Surveillance-Bolivia/id-a0940427f26246079c64dbd710f21b42

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VUHL 05 Ford EcoBoost powered Supercar unveiled

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The new VUHL 05 has been held in extreme secrecy but has been officially unveiled for the world to see. It was revealed in London two days ago for a select audience including SIr Stirling Moss at London?s Royal Automobile Club. VUHL
(pronounced ?vool?) stands for Vehicles of Ultra High-performance and Lightweight). The two-seat mid-engine supercar is the brainchild of brothers Iker and Guillermo Echeverria, whose Mexican/American design company built the breath-taking 05.

The road-legal car recently landed in the UK from Mexico last week where the final assembly took place in Mexico City. The two brothers who designed the supercar have a passion for performance cars that stem from GT and formula racing cars successfully built and campaigned over a 30-year period by their father, Guillermo Echeverria senior.

Engineered for exhilarating performance

The VUHL 05 supercar embodies the ultimate in automotive technology from around the world and has the backing of a number of blue-chip companies that includes Ford, Multimatic, Michelin and the Mexican Government. The road-legal sports car has been precision engineered for the track and endowed with exhilarating performance for both the road and the circuit.

The VUHL 05 is ultra-lightweight and weighs in at just 695kg. The chassis is made exclusively of aluminum and the body consists of RTM reinforced plastic and carbon fiber is an option. The suspension consists of unequal length double wishbones front and rear. It will ride on OZ alloy wheels wrapped with 205/45 x 17 front; 235/45 x 18 rear Michelin performance tires.

The VUHL 05 will be powered by a 2.0-liter Ford EcoBoost turbocharged engine which pumps out 285 horsepower and close to 310 lb ft of torque. The lightweight supercar will have a power to weight ratio of 400 bhp per ton. Just how fast will this make the new two-seat sports car? This will translate to a 0-100 k/ph sprint time of just 3.7 seconds and a top speed of 152 mph.

The bodies of the new mid-engined supercar are being fabricated in Canada, with chassis production and final assembly conducted by the advanced manufacturing concern, Adman Leku in Mexico City.

Testing is still underway

The 05?s handling has been fine-tuned in the UK, while further testing and development is scheduled to take place with assistance from Michelin later this year, both here in the U.S. and Europe. And there is good news for those of us in the U.S. Initial sales will be available in North America and the UK with expansion to other European countries, China and the Middle-East.

How much will the new VUHL 05 cost? Orders are being taken now for delivery beginning in the spring of 2014. The base price will start from 55,000 British Pounds ($81,994 USD) with a wide range of performance options available to allow the 05 to be upgraded to personal taste. For more information go to www.VUHL05.com

Source: http://www.torquenews.com/1084/vuhl-05-ford-ecoboost-powered-supercar-unveiled

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