Plunder by default can be as disastrous as plunder by design

By Gulam Akbar

If Kamran Khan, arguably the most well-informed journalist and anchorman of the country, is to believed ---and I have no reason not to believe him---almost every major state-controlled organization and enterprise of Pakistan has been successfully brought to the brink of bankruptcy and collapse. PIA and Pakistan Steel can be cited as the classical examples of the government's callousness in treating the State's assets as God-gifted rewards (for the favourites of the party in power) for being in the right place at the right time. In the times of General Musharraf, the right place used to be 'Nine Zero'. I remember how the 'cavalcades' of the MQM used to arrive at the headquarters of P.I.A, with great pomp and glory, sometimes led by Mr. Farooq Sattar himself, and some other times by some other luminary of the party of Altaf Bhai. But when President Asif Zardari's chum Mr. Ijaz Haroon (a P.I.A pilot) took over the administration and the destiny of the national airline in his hands---the position of the right place was quickly acquired by Zaradri House. Since then PIA has been a story of mounting appointments and declining passengers and revenue. If the goal was to make the national airline breathe it's last as early as possible, it seems already to have been largely achieved. The signs of life in PIA are just symbolic. Pakistan Steel's story is even worse. And these are just two key examples. There are many more which are being considered as 'well-deserved booty' for 'the struggles' of a particular party. In fact the party may have no share in the grand loot. Those who enjoy access to the man in command of the party and the country may well be the exclusive beneficiaries. Who will save Pakistan and its assets from this monumental plunder---which may not wholly be by design---? Some of it can certainly be by default! Corruption may be a horrible vice. But there are occasions when the results of incompetence are more disastrous.

Sports News

After Niese gets hurt, Figueroa lifts Mets 9-0

NEW YORK – After the Mets lost yet another player to injury, Nelson Figueroa gave them the type of fill-in outing they needed.

Figueroa pitched 4 1-3 scoreless innings and boosted the offense with a two-run triple after Jonathon Niese got hurt, leading New York over the St. Louis Cardinals 9-0 Wednesday.

Angel Pagan hit his second homer in four games and had four RBIs, and David Wright also homered for the Mets. New York took a 5-0 lead in two innings against Kyle Lohse, finished with 15 hits and won for just the second time in seven games, completing a 5-5 homestand.

Niese, who entered the rotation less than two weeks ago because of an injury to Fernando Nieve, strained his right hamstring in the second inning when he went to cover first and fell into the splits while trying to complete a double play. He then threw a practice pitch, grimaced and collapsed. Niese was assisted off the field by two trainers and taken to a hospital for an MRI.

On Monday, Figueroa (1-2) made a spot start against Arizona caused by a rainout last week that disrupted the Mets' rotation. He was awful, lasting just 1 2-3 innings and allowing 10 hits as the Mets fell behind by six runs in a 6-5 loss.

He was far different against the Cardinals, allowing four hits, striking out five and walking none in his first major league win since Sept. 1 at Milwaukee. Bobby Parnell completed the six-hitter for his first career save in five opportunities.

There was more injury news for the banged-up Mets, who have nine players on the disabled list. Left fielder Gary Sheffield, activated from the DL only last Sunday, left in the sixth because of tightness in his right hamstring. And second baseman Luis Castillo missed the game, a day after spraining his left ankle when he slipped and fell in the dugout.

Cardinals center fielder Rick Ankiel helped the Mets by allowing balls from consecutive batters to go off his glove in the second. The first, on a difficult drive by Figueroa, was ruled a triple and the second, an easier play, was scored a sacrifice fly for Pagan plus an error.

The game got a bit contentious in the sixth, when Cardinals reliever Brad Thompson threw a pitch near the head of Wright, prompting plate umpire Bill Miller to warn both dugouts. An inning earlier, Figueroa loaded the bases when he hit Cardinals star Albert Pujols near the right elbow.

Lohse (4-7) dropped to 1-7 with a 5.56 ERA in his last 11 starts, allowing five runs and seven hits in 2 2-3 innings. The Cardinals have lost all but one of those outings.

Pujols, playing after getting spiked on the left shin on a play at second base in the ninth inning Tuesday, doubled his first two times up, giving him hits in six straight official at-bats following an 0 for 13 slide. Five of the hits were for extra bases. The streak ended when he grounded out in the eighth.

Wright's two-run homer put the Mets ahead in the first, just his eighth home run of the season and fifth at spacious Citi Field.

With two on in the second and the Cardinals' outfield shallow, Figueroa hit a drive over Ankiel, who ran back and turned only to have the ball kick off his glove for a two-run triple. It was Figueroa's second extra-base hit in 71 career at-bats.

Pagan followed with a liner to shallow center. Ankiel ran in and the ball once again went off his glove.

Ankiel left during the bottom of the fourth when Colby Rasmus entered as part of a double switch. St. Louis loaded the bases with two outs in the fifth when Pujols was hit, but Matt Holliday struck out and pounded the dirt twice with his bat.

Pagan tripled in a run in the sixth against Thompson and scored on Alex Cora's single, then homered to center off Trever Miller in the eighth.

Furious Prince Fielder is stopped at Dodgers' door

LOS ANGELES – Not even Prince Fielder really knows what he might have done if a phalanx of security guards and teammates hadn't prevented the furious Milwaukee slugger from entering the Los Angeles clubhouse after a ninth-inning beaning.

And nobody is sure how the Brewers and the Dodgers will react in Wednesday's season finale after Los Angeles' impressive 17-4 victory Tuesday night degenerated into retaliation, recrimination and a regrettable charge through the Dodger Stadium tunnels by the Brewers' All-Star first baseman.

The trouble started when Manny Ramirez was hit by a pitch in the seventh while Los Angeles had a nine-run lead, but it didn't boil over until Guillermo Mota was ejected for drilling Fielder with two outs in the ninth. Dodgers catcher Russell Martin acknowledged it was a response to Chris Smith hitting Ramirez with what appeared to be a much less purposeful pitch.

"It's just part of the game," Martin said. "Our premier hitter gets hit, and he gets protection. I understand (Fielder) is frustrated, but you don't take care of that after the game."

Mota and Fielder were teammates in Milwaukee last year, but the veteran reliever and the burly power hitter are no longer on friendly terms. Fielder took off for the Dodgers' side of the stadium after the final out, shouting obscenities all the way to the clubhouse door.

Several teammates trailed behind him in a surreal scene, but Bill Hall and Casey McGehee got a firm grip on Fielder while a wall of security blocked his way.

Most of the Dodgers didn't know about Fielder's march, since the door he reached is at least 30 feet down a hallway from the clubhouse. They'll all hear about it before Jason Schmidt takes the mound Wednesday.

"We don't want the same situation as last year in the playoffs, when Philly threw at Manny and we didn't retaliate," Martin said, referring to last fall's NL championship series against the Phillies. "We don't want to be known as a team that doesn't have each other's backs."

The late shenanigans marred Los Angeles' highest-scoring home performance in 30 years. Brewers manager Ken Macha felt Mota's two-out pitch could have added injury to the insult of a 13-run loss.

"(Fielder) has been hit a lot, but he digs right in there and doesn't budge," Macha said. "He just doesn't like when somebody does it on purpose. I don't blame him. Everybody's trying to make a living, and this type of mentality puts everybody in jeopardy — myself, the other team, the players on the other team. So, to me, giving a guy a $500 fine and a two-day suspension is not enough. This type of stuff should be cleaned up."

Moments after his trek through the tunnel, Fielder had calmed down enough to reply sarcastically to questions. Macha said he planned to have Fielder in the lineup Wednesday.

"He came inside. It just got away from him," Fielder said. "It happens. That's baseball. He tried to come inside."

When asked about his postgame march to the other side, he deadpanned: "I don't remember that."

Ramirez ended his 10-game RBI drought with a homer and a two-run double during the Dodgers' highest-scoring performance of the season. With 18 hits and three huge innings with at least four runs, Los Angeles improved the majors' best record to 66-41 — yet the late-game pitches overshadowed everything.

"I'm pretty sure our guy wasn't really trying to hit Manny," Milwaukee's Mike Cameron said. "I mean, it just kind of grazed him. But that's how they felt. That's what they thought they needed to do, so that's cool. We'll deal with it when we cross the (lines), but there's no concern for anything right now."

Matt Kemp had a homer among his four hits while driving in five runs, getting two hits and two RBIs during the seven-run sixth inning alone. Martin reached base five times and had three RBIs.

Los Angeles sent eight men to the plate in a four-run first inning and used 12 batters in the sixth before batting around again in the five-run eighth. Six Dodgers had multihit games, including three apiece for Martin and Andre Ethier.

The Dodgers hadn't scored 17 runs at Dodger Stadium since May 25, 1979, against Cincinnati.

Hiroki Kuroda (4-5) pitched six resilient innings to earn his first win since July 3. He yielded nine hits and three runs, struck out seven and escaped a fifth-inning jam.

Ramirez ended his RBI-less streak at 44 at-bats, matching the longest drought of his career in 1997, with a long homer in the fifth off Yovani Gallardo (10-8), who yielded 10 hits and nine runs. Ramirez hadn't driven in a run since his pinch-hit grand slam July 22.

Ramirez, in a 7-for-44 slump before his 12th homer, had a chance for his 22nd career grand slam in the sixth. He settled for a sharp two-RBI drive down the left field line.

Bullet' Bob finally land among football's best

DALLAS – Now that Bob Hayes is going into the Pro Football Hall of Fame, people hearing his story for the first time are going to wonder what took so long.

After all, he changed the game.

Hayes brought a new kind of speed to pro football: Olympic gold-medal speed. "Bullet Bob" won two of them in 1964, tying the world record in the 100 meters and running one of the greatest anchor legs ever seen to bring the United States from far behind in the 400-meter relay.

He joined the Dallas Cowboys in 1965 and showed what he could do right away. In a preseason game, quarterback Jerry Rhome overthrew everyone, or, at least, so it seemed, until Hayes swooped in and caught the ball. Immediately promoted to the starting lineup for the opener, Hayes scored touchdowns on three of his first four catches.

That rookie year, Hayes led the league in touchdowns and became Dallas' first 1,000-yard receiver. The next year, he led the league in TDs again and cracked 1,200 yards, a team record that stood for 25 years. The Cowboys also won their division for the first time.

Hayes went on to lead the NFL in yards per catch in 1970, the year the Cowboys went to their first Super Bowl, and again in '71, when Dallas won it all for the first time. That made him the first person to win Olympic gold and a Super Bowl; he's still the only one.

"This guy revolutionized the passing game and forced them to come up with the zone defense, just like Wilt Chamberlain forced them to change certain rules in basketball," Hall of Fame defensive back Herb Adderley said.

Hayes was a huge threat no matter who was throwing him the ball. He caught a 95-yard touchdown pass from Don Meredith, an 89-yarder from Craig Morton and an 85-yarder from Roger Staubach.

The same day he notched the club-record 95-yarder, Hayes also scored from 52 yards out. He finished that game with 246 yards, another club record.

"He could always just hit another gear and no one could beat him," said Staubach, a Hall of Famer himself. "Quarterbacks get used to wide receivers because they're pretty similar, but Bob was crazy-fast. You had to learn to get rid of it a lot quicker because his speed was so different than everybody else. ... You thought you'd overthrew him and he'd run under it like he had to slow down."

He was a heck of a punt returner, too.

Hayes led the league in total punt-return yardage in 1967 and in yards per punt return in 1968. His average that season was 20.8; nobody has come within 2 yards since.

To put Hayes' career in modern terms, consider this: Over 11 years, he averaged more yards per punt return than Deion Sanders, more yards per catch than Randy Moss, scored more touchdowns than Michael Irvin and averaged a touchdown every 5.2 catches, compared to every 6.8 catches for Terrell Owens and every 7.9 for Jerry Rice.

And, get this — stats were a lot harder to come by in his era.

"You didn't throw the ball 45 times per game back then and receivers could get hit anywhere down the field," Staubach said. "That was the thing with Bob. They knew they couldn't catch him, so they were trying hit him."

It makes you wonder what Hayes would've been like with today's rules.

"Oh, my goodness," said Adderley, who went head-to-head with Hayes while playing for Green Bay, then became his close friend as teammates in Dallas. "I don't know how they'd cover him unless they used two or three guys."

So, back to the original point: Why did it take 29 years after Hayes became eligible — and seven years after he died at age 59 — for the "Bullet" to finally land in Canton?

Well, in 1979, just before he went on the ballot for the first time, Hayes pleaded guilty to delivering narcotics to an undercover police officer and spent 10 months behind bars. Although the conviction later was overturned, the damage to his reputation was done.

"That shouldn't have prevented him from being in the Hall of Fame, but I definitely feel it did," Staubach said. "I think most people feel that's the case because the facts are so overwhelming."

Hayes' supporters were really rankled in 1999 when Lawrence Taylor — who brought a new dimension to the linebacker's spot just like Hayes did to receiver, and also had his share of drug problems — was elected into the Hall on his first try. Taylor even had the public support of then-commissioner Paul Tagliabue.

"Why did they hold it against Hayes and not other guys?" Adderley said. "He should've been a first-ballot Hall of Famer."

Cowboys owner Jerry Jones helped revive Hayes' candidacy by putting him into the club's Ring of Honor in 2001. Hayes died a year later, but got another shot at the Hall when the senior committee made him a finalist in 2004. It took a rare second chance from the seniors for him to finally make it this time.

Even after all those years of waiting, the glory didn't last. Controversy returned. The sister who read a letter Hayes wrote in 1999 specifically for this occasion turned out not to be his sister, and there were plenty of questions about the legitimacy of the letter.

On Saturday, however, the ceremony will emphasize the highlights of Hayes' career and life.

Staubach will be his presenter, followed by a video tribute. Bob Hayes Jr. will accept the honor on his father's behalf.

Hayes will join Jim Thorpe as the only Olympic gold medalists in Canton. He'll also be the 11th person inducted primarily for his days with the Cowboys.

"The common denominator about Bob is that he cared about people," Staubach said. "He wanted to put a smile on people's faces. And he was a phenomenal athlete."

To Rachel Alexandra! Cheers from Kendall-Jackson

SANTA ROSA, Calif. – Vintage Rachel.

Racing fans will soon be able to do more than toast Rachel Alexandra in the winner's circle. The super filly is about to get her own line of wines.

Kendall-Jackson Winery announced Tuesday a limited edition of wines honoring their 3-year-old will be ready for the holiday season.

The winery says fewer than 300 cases of the wines will be produced and each bottle will have Rachel's image. Jess Jackson and wife Barbara Banke are co-owners of the winery. Jackson purchased Rachel Alexandra in May after the filly won the Kentucky Oaks by 20 1/4 lengths.

Rachel Alexandra is clearly traveling in more refined circles these days. She is featured in the recent issue of Vogue, with the layout shot by fashion photographer Steven Klein. The magazine spread grew out of a trip to the Preakness by Vogue editor Anna Wintour.

Rachel Alexandra won the Haskell Invitational against colts Sunday, beating Belmont Stakes winner Summer Bird by six lengths for her eighth victory in a row. She also won against the boys in the Preakness Stakes in May.

AP Interview: Aaron says release 104 drug names

PALM BEACH GARDENS, Fla. – Hank Aaron wants to shine some more light on baseball's steroid era. The former home run king favors releasing the full list of players who tested positive for performance-enhancing drugs in 2003.

In a wide-ranging interview Tuesday night with The Associated Press, the Hall of Famer said releasing the list would help Major League Baseball get past its drug stigma. The list was supposed to remain anonymous and is now under court seal, but big names have continued to leak out.

"I wish for once and forever that we could come out and say we have 100 and some names, name them all and get it over and let baseball go on," Aaron said. "I don't know how they keep leaking out. I just wish that they would name them all and get it over with."

Aaron also wanted to make a few other things clear.

No, he has not spoken with commissioner Bud Selig about banned Pete Rose being reinstated in baseball. But he does think it's time Rose, the career hits leader, be reinstated and voted into the Hall of Fame.

Rose agreed to a lifetime ban from baseball in 1989 after an investigation concluded he bet on the Cincinnati Reds to win while he was manager of the team.

"How long does a person have to die?" Aaron said. "I think the thing that bothers me is that he is missing out on a lot of things. He made a mistake. I don't know what else can be done, or what else can be said. I just think at some point he needs to start enjoying being a Hall of Famer."

Aaron spoke to the AP before a banquet for the 17th Annual RBI World Series. The program is designed to increase participation and interest in baseball for youths and minorities — one of the primary issues Aaron is working on.

With the number of blacks in the majors dwindling in the past few decades, Aaron said MLB — and everyone — could do more to curb the numbers.

"You always think that a program needs to do more, no question about it, if you have the funds," Aaron said. "We all need to do more. I think we all need to do more to help."

However, since steroids have come become one of baseball's biggest problems, the thought that the game is still tainted doesn't sit well with Aaron, who held the home run record with 755 until Barry Bonds broke it.

Neither does the fact that some of baseball's biggest names — including a New York Times report last week that identified Boston slugger David Ortiz and former teammate Manny Ramirez — continue to pop up on what has simply become known as "the list."

There were no penalties for a positive test in 2003 — the anonymous tests were conducted to determine if it was necessary to impose mandatory random drug testing across the major leagues in 2004. But federal agents seized the results as part of the BALCO investigation. The players' union has argued the search was illegal, and the case is currently before the 9th U.S. Circuit Court of Appeals.

At the event in Palm Beach Gardens on Tuesday night, Aaron said he often delivers a message to kids about getting involved in baseball but also about staying out of trouble. He thought the same message could apply to some major leaguers.

"I tell them you may not be able to hit 700 home runs, but you need to do the right things," Aaron said. "There's no shortcuts in life. Everything is going to catch up."

Swiss pick UAE's Ras al-Khaimah for America's Cup

One of the most anticipated showdowns in America's Cup history will be sailed on the Persian Gulf in two of the fastest, most powerful sailboats ever built.

Two-time defending champion Alinghi of Switzerland on Wednesday picked Ras al-Khaimah, United Arab Emirates, as the port for its best-of-3 showdown against bitter American rival BMW Oracle Racing for the oldest trophy in international sports.

Everything leading up to this America's Cup has been unconventional, so it figures that the venue would be extraordinary, too.

A little-known city-state, Ras al-Khaimah literally means "The Top of the Tent." It is on the southern end of the Persian Gulf and not far from the Strait of Hormuz, which separates the UAE from Iran.

The grudge match between bickering billionaires Larry Ellison of BMW Oracle Racing and Ernesto Bertarelli of Alinghi will begin Feb. 8.

In a news release issued in Geneva, officials from Alinghi and its supporting yacht club, Societe Nautique de Geneve, said Ras al-Khaimah is ideal because of its weather and support pledged by leaders there.

"Our absolute priorities in making this decision are the prevailing weather conditions and the resulting safety that they bring to both teams," said Alinghi skipper Brad Butterworth, a New Zealander and four-time America's Cup winner.

The syndicates have built giant, space age-looking multihulls that could provide the most spectacular racing in the 158-year history of the America's Cup.

Alinghi will sail a catamaran and BMW Oracle Racing a trimaran. The boats are 90 feet long and have masts roughly the height of a 16-story building and mainsails twice the size of a Boeing 747's wing. They can sail at 2 to 2 1/2 times the speed of the wind.

Alinghi trained in Dubai, UAE, prior to the America's Cup in 2007, when it beat Team New Zealand in Valencia, Spain.

Butterworth said Ras al-Khaimah "has a great, building sea breeze during the day, similar to Mediterranean conditions in the summer, making it good for these boats and safe for all concerned."

While big and powerful, the boats are also potentially lethal should there be an accident. Both sides have been cautious in bringing them up to speed. Alinghi eliminated Valencia as a venue because of concerns about rough weather in February.

This rare one-on-one match is the result of a convoluted, two-year legal fight between Bertarelli, a biotech tycoon, and Silicon Valley maverick Ellison, the founder and CEO of business software giant Oracle Corp. The one-time pals sail aboard the boats they own.

In the Alinghi statement, Sheikh Saud Bin Saqr Al Qasimi said it is "a great moment for us to host the America's Cup here. It is significant because it reflects how the Emirates have become a place for hosting international events. It is a reflection on what we have achieved in terms of becoming the destination for tourists and trade and industry and is a reflection of our integration in the world at large.

"This announcement reflects the nature of our country and its aim of becoming host to many nationalities who live side by side in peace," the emirate's crown prince added. "It is a hope and dream that this is the kind of space that we want to have on our globe. It is a great moment for us to host this prestigious event and to welcome all the sports people to the UAE and to Ras al-Khaimah to watch this great event."

Fred Meyer, vice commodore of Societe Nautique de Geneve, said UAE officials will build an island to be used by the teams, sponsors and fans.

RAK, as the emirate is called, isn't known for oil. It is the biggest producer of cement in the UAE.

Alinghi is believed to have wanted a port with light wind and flat seas, which could give its giant cat, named Alinghi 5, an edge over BMW Oracle Racing's trimaran, which is undergoing sea trials off San Diego.

Alinghi is scheduled to use a giant, Russian-built helicopter to lift Alinghi 5 off Lake Geneva on Friday and fly it over the Alps along the Great St. Bernard Pass to Genoa, Italy, for a month of training on the Mediterranean.

Alinghi won a decision in a New York court last week allowing it to use an engine to trim the sails and move water ballast from one hull to the other. BMW Oracle Racing is considering adding an engine to its monster trimaran.

The America's Cup got its name after the schooner America beat a fleet of British ships around the Isle of Wight on Aug. 22, 1851, to win an ornate silver trophy that had been called the Hundred Guinea Cup. Since then it has been contested off New York; Newport, R.I; Fremantle, Australia; San Diego; Auckland, New Zealand; and Valencia.

Entertainment News

The term 'Cronkiter' faces scrutiny, debunking

NEW YORK – Legendary figures sometimes find a few tall tales seeping into their obits when they die. Their legendary status invites it.

But the case of Walter Cronkite packs a special brand of irony. Turns out, the anchorman who prided himself on accuracy helped perpetuate an unfounded claim that newscasters in Sweden and Holland had been nicknamed "cronkiters."

Cronkite wasn't alone in this mistaken report. Apparently, the first journalist to publish it was Pulitzer-prize-winning author David Halberstam. In a magazine piece in 1976, Halberstam wrote that Cronkite's international stature was such that, "in Sweden, anchormen came to be known as Cronkiters." It was a tidbit Halberstam repeated in his classic 1979 chronicle of the modern media world, "The Powers That Be."

The theory gained credence when Cronkite himself mentioned it in "A Reporter's Life," his 1996 memoir. He wrote that in Sweden "for some years, anchormen were called 'cronkiters.'"

By then, the tale had also appeared in a 1978 history of CBS News. The Encyclopedia of Television included it in its entry on Cronkite.

When Cronkite died last month, The Associated Press published it in his obituary

Michael Jackson's mom played role in business, too

NEW YORK – Entering into a business relationship with Michael Jackson rarely meant a long-lasting partnership. Over time, especially in the waning years of his life, Jackson hired — then fired — a litany of associates, from managers to attorneys to publicists.

Most were dispatched after the relationship soured, and the trust had evaporated.

Perhaps the one exception in his financial life was Jackson's mother, Katherine.

Jackson relied on his 79-year-old mother for more than emotional support: Documents show he put her in the position of trustee on contracts, including his lucrative Sony-ATV catalog, and associates say he also sought her input on other financial matters as he became more wary of those in his business circle.

"Any deal Michael did, he always called his mother up," said Steve Manning, a close friend of the Jackson family. "She was the backbone of his spirit."

"What he trusted was that she would make sure that his wishes were carried out," said Mrs. Jackson's attorney, L. Londell McMillan, who is representing her interests as the singer's estate is sorted out. "He understood that she was the most loyal person in his life. Her loyalty did not stop for Michael with merely personal matters."

But Jackson's last known will, drafted in 2002, left his mother, along with his three children, out of any decision-making role in his estate, leaving her only as a beneficiary.

Attorney John Branca and Jackson's former manager and close friend, John McClain, were named (along with a third party who has since removed himself) as the only people with the authority to guide his business matters after his death.

Mrs. Jackson is trying to change that, seeking to gain some kind of control over her late son's estate. The Jackson matriarch is adamant that she — or even another family member — have a role over Michael Jackson's business legacy, which may be worth more in death than when he was alive. Some estimates have valued his estate at $500 million.

Mrs. Jackson has filed a motion to determine whether contesting the two executors would lead to disinheritance — Jackson's will had a no-contest clause.

"She is concerned about how the trust is going to be managed. She wants to make sure that she has a seat at the table and the family has a seat at the table," said Dean Hansell, an attorney who spoke for Mrs. Jackson in court Monday. "She wants that and she has been coming up against resistance."

But in an interview with The Associated Press on Tuesday, Branca said he is amenable to having Mrs. Jackson, or someone in the family, in a trustee role.

"We are going to have a meaningful conversation with her about having one of her family members become a co-trustee," Branca said. "Our number one priority is to make sure this estate is run effectively."

Throughout the years, Jackson's devotion to his mother has been well-documented, and it was proven again after his death, as he named her in his will as his first choice to raise his three children, and also named her and his kids as the only individuals to inherit his fortune (he also left a portion of his wealth to charity).

Katherine Jackson has not previously been known for her business acumen. It was Joe Jackson who was the manager of his sons as the Jackson 5, and acted as the manager for all of his nine children into their adult years.

But Manning claims it was Katherine, not Joe, who gave Michael Jackson his business sense, which he described as shrewd and fair.

He recalled when Jackson purchased the Beatles catalog, which also included Little Richard's music, he called his mother to ask her opinion on how he should handle Little Richard's situation: the rock legend had for years complained about being unfairly compensated for his publishing rights. His mother advised him to treat Little Richard with respect, and because of that, "(Michael) made sure that Little Richard was compensated fairly."

He also said that when Michael Jackson's MJJ Productions fell on hard times, "Michael made sure with his mother that every employee was paid."

"She is a woman of great faith, and believes if you treat people right, (good) things will come back to you."

Jackson named his mother on at least two trusts — besides the Sony-ATV music catalog, she's a part of his Mijac publishing company — and McMillan said she was active in Jackson's business affairs, even attending depositions in legal cases.

However, a source who asked for anonymity because of the ongoing nature of the situation said those trustee positions did not have decision-making authority.

Whether Mrs. Jackson has the business capacity to deal with Jackson's estate, which is complicated and tangled, is likely to be a key question. She and Joe filed for bankruptcy 10 years ago, listing nearly $24 million in debts that included court judgments, auto loans and credit cards. Court records show the only valuable asset listed was a house in Las Vegas then valued at $290,000.

McMillan said the role of a trustee does not require a person to be a business whiz.

"A trustee is one of trust as opposed to extraordinary skill," he said. "Trustees hire experts to administer business that requires experts."

Manning said Mrs. Jackson is confident that her legal team would do an excellent job with her guidance. He also raised the possibility that one of Jackson's five brothers could have a role in the estate: "That would be the right thing to do, the right thing to happen."

Legally, Mrs. Jackson may not be able to have an official role. Both Branca and Hansell said the addition of Katherine as an executor of the will or a trustee of the trust might raise tax questions because she is a beneficiary.

Branca was Jackson's attorney for many years, working with him during the height of his fame and helping negotiate his deal to buy the Beatles catalog. But they split in 2005 until Branca was brought back shortly before Jackson's death as he prepared for his comeback concerts with the promoter AEG.

McClain has been very close with the family for decades, and was instrumental in building Janet Jackson's career. He also had played key roles in Michael Jackson's career in its later years.

Manning spoke highly of McClain, saying he has been "like a son" to the Jackson parents.

"He's like a confidant," he said. "He was very, very close to the family."

Branca and McClain have control of Jackson's estate until at least Oct. 3. They have already made several deals on behalf of Jackson's estate, including a reissue of his memoir "Moonwalk" and a full-length motion picture filled with footage of his last rehearsals, which requires a judge's approval. In a sign that Katherine Jackson's input is already being considered critical, the judge has scheduled a hearing Monday to see, among other things, whether she has any objections.

But McMillan claims Jackson would have wanted his mother to be part of any dealmaking as well, quoting Jackson's sentiments about his mother from a deposition: "For the past several years I have started using my mother because she is the most trusted person in my life. I trust my mother more than anyone."

"Twilight" author accused of plagiarism

LOS ANGELES (Reuters) – A writer plans to sue "Twilight" author Stephenie Meyer, accusing her of plagiarism by lifting passages from an obscure book she wrote called "The Nocturne" and using them in vampire romance "Breaking Dawn," an attorney said on Tuesday.

J. Craig Williams, who represents "The Nocturne" author Jordan Scott, told Reuters by phone that the passages in question involve few word-for-word similarities but that the two books have similar plot and character points.

Meyer's publisher, Hachette Book Group, called the accusation meritless, saying "The Twilight Saga" is entirely Meyer's creation and that she knew nothing of "The Nocturne."

"Breaking Dawn," which came out in 2008, is the fourth book in the series of novels about a teenager, Bella Swan, caught in a forbidden romance with vampire Edward Cullen.

The "Twilight" books, which the publisher says have sold 70 million copies worldwide, are the basis for a movie series from Summit Entertainment. The first film, "Twilight," has earned more than $380 million at worldwide box offices, and the second, "New Moon," hits theaters in November.

In "Breaking Dawn," Bella marries the blood-sucking Cullen and the book follows Bella through a difficult pregnancy and her new life as a vampire.

In a cease-and-desist letter Williams sent to Hachette Book Group, he provided comparisons from the two books of a wedding, a sex-on-the-beach episode and a passage where a human-turned-vampire describes the wrenching change.

As another instance of similarities, Williams pointed out that characters in both books call their wives "love."

Hachette Book Group said in a statement that Meyer's books "have been a phenomenal sensation" and that "it shouldn't be surprising to hear that other people may seek to ride the coattails of such success."

Williams said Scott plans to file a copyright infringement lawsuit against Meyer this week or next in U.S. federal court.

"I think the fans have to read both books and make up their own mind, like a judge is going to have to," Williams said.

He said Scott does not plan to seek monetary damages.

Scott made chapters from "The Nocturne" available online as she was working on the vampire book, which she wrote in her teenage years and released in book form in 2006, Williams said. He said he did not know how many copies the book sold.

(Reporting by Alex Dobuzinskis: Editing by Bob Tourtellotte)

Chris Brown to be sentenced for assault

LOS ANGELES – Chris Brown has pleaded guilty and publicly apologized for beating Rihanna, but after Wednesday afternoon, plenty more hard work lies ahead.

The 20-year-old R&B singer is scheduled to be sentenced to five years of probation and six months of community labor. A judge has said she wants Brown, who will likely be allowed to serve his probation in his home state of Virginia, to do work that is comparable to graffiti removal or roadside cleanup.

The "Run It!" singer pleaded guilty in late June to felony assault before a preliminary hearing in which Rihanna was likely to testify. The Los Angeles County District Attorney's Office has said Brown's sentence is in line with what others receive when they are charged with similar crimes and have no prior criminal history. The office does not provide specific information on comparable cases, spokeswoman Jane Robison said Wednesday.

The former couple never faced each other at that hearing. As Brown left through one door, Rihanna entered the courtroom from a private entrance.

Donald Etra, Rihanna's attorney, said Tuesday that the 21-year-old singer would not appear in court for Brown's sentencing. Etra said he would ask Los Angeles Superior Court Judge Patricia Schnegg to rescind a restraining order that keeps the pair from talking or meeting one another.

Etra said he would ask that it be replaced by an order that prohibits Brown from harassing, annoying or molesting Rihanna.

Brown said in a public apology video posted on his Web site July 20 that he had repeatedly apologized to Rihanna for the attack. He called his conduct "inexcusable" and pledged to do better.

"I saw firsthand what uncontrolled rage can do," he tells viewers. "I have sought and am continuing to seek help to ensure that what occurred in February can never happen again."

Schnegg will consider a report by probation officials and has warned Brown that he will face substantial scrutiny. She told him in June that he'll have to return to California every three months and attend domestic violence counseling.

That's assuming Virginia authorities agree to take his case. The state has not yet been contacted about Brown's case and won't be until he is sentenced, said Virginia Department of Corrections spokesman Larry Traylor.

He said probation officials would have to look at the conditions requested by California authorities, but that the department does not comment on individual cases for privacy reasons.

Brown was arrested Feb. 8, hours after an early morning fight erupted between the singer and his then-girlfriend in a car in Los Angeles' Hancock Park neighborhood. A search warrant affidavit filed by police described the brutal attack, stating that Brown beat, choked and bit Rihanna and tried to push her out of the car.

The beating occurred hours before the pair were scheduled to appear at the Grammy Awards, and both have been forced to cancel several high-profile appearances since then.

Brown's career has suffered, with radio stations refusing to play his music and sponsors dropping him.

Ga. man charged with trying to stalk Miley Cyrus

SAVANNAH, Ga. – A 53-year-old man who told police he is secretly engaged to marry Miley Cyrus has been charged with attempting to stalk the teenage "Hannah Montana" star, who is filming a movie in the Savannah area.

Tybee Island Police Chief Jim Price said Wednesday that Mark McLeod, 53, of Appling was arrested after Walt Disney Pictures security officers reported he had returned to the beachside movie set Sunday after police warned him to stay away in June.

"He was asking for Miley and going up and knocking on some doors" of beach homes near the set, Price said. "The security guards recognized him. In fact, he went up to the security guards and asked them 'Is Miley around?'"

Police on Tybee Island, 12 miles east of Savannah, have been on the lookout for McLeod since he was arrested there June 22 on misdemeanor charges of disorderly conduct and obstruction of a police officer.

Price said officers arrested McLeod after he tried to breach a security perimeter around the movie set. A police report says McLeod told officers he had come to the beach "to be with Miley" and tried to head butt one of them when he was handcuffed. McLeod later told police he and the 16-year-old Cyrus "were supposed to be together and we couldn't stop it."

Officer Warren Millikan wrote in his June report that McLeod claimed he'd met Cyrus 18 months earlier, that he'd sent her diamond rings and other gifts and that she had accepted his marriage proposal.

The report said McLeod told police Cyrus' father, country singer Billy Ray Cyrus, approved of their relationship and that Miley Cyrus sent him "secret messages" through her TV show.

The officer's report quoted McLeod as saying, "Our eyes met at her concert and we both knew. I walked straight through security and up to her bus. Bill Ray was standing there. He shook my hand and said you're the good man we've been praying for."

Cyrus has been working on the movie "The Last Song" in coastal Georgia since mid-June. Filming is supposed to wrap up later this month.

McLeod was released from jail in June after signing papers agreeing to return for a court appearance Sept. 1. Price said police obtained a warrant to charge him with criminal attempted stalking, a misdemeanor, after he came back to the island Sunday.

McLeod has made no known threats to Cyrus, Price said, but the attempted stalking charge was warranted because "he's been warned by the police officers not to come back after the first arrest."

Sheriff's deputies in Columbia County arrested McLeod at his home in Appling, 180 miles from where Cyrus is filming, Tuesday evening. He was being transported Wednesday back to jail in coastal Chatham County.

McLeod does not have a listed telephone number in Appling, and police records did not indicate he had hired an attorney. Todd Martin, a public defender in Chatham County, said his office had not been asked to represent McLeod.

In March, the New York Daily news shot video of McLeod waiting in line at a book-signing appearance by Cyrus in Manhattan. "Hold me up. I'm a little bit nervous," said McLeod, shivering in a heavy coat and wool hat.

"It's the first time I've ever, uh, actually been face to face with her," McLeod told the newspaper. "I talk to her a lot but it's kind of like I talk and she responds with pictures. It's just the way we communicate. I'm going to get her some flowers and I'm going to ask her to marry me."

New Orleans rapper C-Murder's murder trial begins

GRETNA, La. – Opening arguments are under way in the murder trial of Corey Miller, a New Orleans rapper known as C-Murder.

It took only two days to seat 12 jurors and two alternates before testimony began Wednesday, although the defense had argued it would be impossible to get a fair jury in Jefferson Parish, where the slaying took place.

Miller is charged with second-degree murder in the Jan. 12, 2002, death of 16-year-old Steve Thomas, a fan who was shot in a now-closed nightclub.

If convicted of the charge, the 38-year-old Miller could face life in prison.

Miller was found guilty of the charge earlier, but a judge overturned the conviction, siding with defense attorneys who said prosecutors improperly withheld the criminal backgrounds of three key witnesses.

Business News

Weak economic data puts stock market rally on hold

NEW YORK – Wall Street's summer rally is on hold as reminders of the economy's weakness give investors reason to take some profits.

Stocks fell moderately Wednesday after an unpleasant reading on the service sector added to investors' growing anxiety over the Labor Department's jobs report, which is due Friday morning. Some pullback is to be expected after a huge rally that sent the Dow Jones industrials and the Standard & Poor's 500 index up 14 percent in just 16 days.

The Institute for Supply Management said business at service companies was weaker than expected last month. The trade group's services index, a measure of the health of retail, financial services, transportation and health care companies, fell to 46.4 from 47 in June, marking the 10th straight month of declines. A reading below 50 indicates the sector is shrinking.

The disappointing news offset a more upbeat report from the Commerce Department, which said factory orders rose in June for the fourth time in five months. The 0.4 percent increase came after a 1.1 percent increase in May. Economists had been expecting a decline of 1 percent.

Though there have been recent signs of improvement in manufacturing and housing, the market is still worried that rising unemployment will restrain consumers from spending and hinder the economy's recovery. Analysts said Wednesday's slide was natural after such a big jump, especially with caution running high ahead of the jobs report.

"The market has just had a pretty good advance and is looking for a reason for a pullback," said Henry Herrmann, CEO of investment management firm Waddell & Reed.

In late afternoon trading, the Dow fell 26.22, or 0.3 percent, to 9,293.97. The S&P 500 index fell 1.50, or 0.2 percent, to 1,004.15, while the Nasdaq composite index fell 16.54, or 0.8 percent, to 1,994.77.

In other trading, the Russell 2000 index of smaller companies fell 4.98, or 0.9 percent, to 565.76.

About three stocks fell for every two that rose on the New York Mercantile Exchange, where volume came to 1 billion shares.

Treasury prices were mixed. Bond traders seemed little fazed by the Treasury Department's announcement that it plans to auction off $75 billion of three, 10 and 30-year notes next week. Though there have been concerns that the flood of government debt being issued this year to help fund the administration's stimulus programs would outweigh demand, auctions, for the most part, have been going smoothly.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.72 percent from 3.69 percent late Tuesday.

The pullback in stocks on Wednesday is a sign of the market's health, analysts said, as building on to gains in an orderly, step-like fashion is more stable than a surge without any breaks. And dips in the market present opportunities for new buyers to step in.

"It would only be natural to hesitate here as it tries to make up its mind as to what the next move will be," said Michael Sheldon, chief market strategist at RDM Financial.

Analysts said the jobs report on Friday is a critical juncture for the market and could set the tone for how stocks trade in the next few weeks.

"The question is, even if it is a little bit strong, will it be enough to support an additional near-term advance in the markets given the run the equities have had over the past several sessions?" Sheldon asked.

Economists expect the report will show the jobless rate rose to 9.6 percent as employers cut 320,000 jobs last month, better than the 467,000 lost in June.

A private-sector report on unemployment Wednesday offered little encouragement ahead of the government data. The ADP National Employment Report, a closely watched precursor to the Labor Department's report, said employment fell by 371,000 in July — slightly more than anticipated — following a revised decline of 463,000 jobs in June.

The dollar was narrowly mixed against other major currencies.

Light, sweet crude rose 55 cents to settle at $17.97 a barrel on the New York Mercantile Exchange.

Overseas markets fell. European indexes reversed early gains and finished with modest losses. Britain's FTSE 100 fell 0.5 percent, Germany's DAX index lost 1.2 percent, and France's CAC-40 shed 0.5 percent.

Earlier Wednesday, Japan's Nikkei stock average closed down 1.2 percent.

GM board orders faster new vehicle rollout

TRAVERSE CITY, Mich. – At its first meeting, the board overseeing the new General Motors Co. ordered management to bring some new vehicles to market faster, a sign that the new 13-member board will play a far larger role than the old one.

Board Chairman Edward Whitacre Jr., in a conference call with reporters Wednesday, would not identify which vehicles were pulled ahead, but said the board of the government-controlled company emphasized fuel efficiency as well as other areas.

"I'll tell you there were some suggestions made," said Whitacre, former CEO of telecommunications giant AT&T. "There were some changes made. This board's going to be very active. We're charged with doing well for the stockholders."

GM, which emerged from bankruptcy protection July 10, can become profitable sooner than most people think, Whitacre said, although he wouldn't give a time frame. The company is not yet profitable despite shedding debts and burdensome contracts in bankruptcy court, he said.

"We've only been at this one month," he said. "It's a complicated financial situation at this point in time. We have an aim for when we'll cross that line."

The board, he said, spent much of its time going over GM's financial statements, then moved to the Milford, Mich., proving ground northwest of Detroit to drive vehicles.

After the drives, Whitacre said he is confident that GM can protect and grow its market share in the U.S. despite shedding four brands to focus on Chevrolet, Buick, GMC and Cadillac.

GM ended July with 18.9 percent of the U.S. market, down from 20.5 percent a year ago. The company in the 1950s controlled more than 50 percent of the market.

GM, in a viability plan filed with the U.S. government in April, predicted its U.S. market share would be 19.5 percent this year, 18.9 percent next year and 18.6 percent in 2011.

Whitacre said he is confident the company can maintain those numbers and even grow, despite selling or scrapping Pontiac, Saturn, Hummer and Saab.

"We think it's possible. Time will tell," he said, adding that it's important to grow market share to grow sales.

GM will stick with the Chevrolet Volt rechargeable electric car despite reservations about its prospects of making money that were expressed by members of the Obama administration's auto task force, Whitacre said.

The Volt, due in showrooms late next year, can go 40 miles on a single charge from a home electrical outlet. It has a small internal combustion engine on board to generate electricity for the car beyond that.

He called the Volt a "leap in technology" that no one else has, and said the country needs to move toward electric vehicles.

"I think it will be very successful," he said.

Whitacre said the board was interested in pulling more fuel-efficient products forward.

"We're certainly going that direction of more efficient models," he said. "We're looking at reliability. We're looking at efficiency. We certainly will make a major thrust in that direction, but that's not the only direction we're going."

Many critics say GM's old board, once called a "pet rock" by former member H. Ross Perot, stuck with former Chairman and CEO Rick Wagoner too long and failed to make management changes over the years.

New CEO Fritz Henderson already has ushered several top managers into retirement and moved up younger people, although he has been unable to bring in outsiders.

Yet Whitacre said moving up people from within the company will help it make decisions faster, and he said he wasn't sure that the culture needed to be changed as much as the structure changed so people can show their talents.

"I think there's a lot of talented people at General Motors," he said. "The people that I've encountered certainly are capable and they're enthusiastic."

He said the board of the company, which now is 61 percent owned by the U.S. government, will not be involved in day-to-day operations, leaving that to Henderson. The board, he said, supports Henderson and the top management.

"He certainly has our blessings and encouragement," Whitacre said. "He knows what the board expects from him."

Whitacre said he talks with Henderson almost daily.

The board's more activist stance is a positive sign for the company and shows the board is interested in turning a profit quickly so GM can sell stock to the public once again, said Robert Wiseman, a professor of strategic management at the Eli Broad College of Business at Michigan State University.

The U.S. government, which has given GM $50 billion in aid, is hoping to get much of its money back through a public stock offering as early as next year.

By pulling some products into showrooms earlier, the board also is showing that GM has a stream of new vehicles coming, he said.

"The price of the stock is determined by what's going to happen next," he said.

He said the board's involvement in product decisions seems to show that the new board intends to be more active than the previous one.

Whitacre would not comment on GM's negotiations with two bidders to sell part of its European Adam Opel GbmH operations other than to say he expects to resolve the situation soon.

The two potential suitors for Opel and the British Vauxhall unit are a consortium of Canadian car parts maker Magna International Inc. and Russian lender Sberbank; and Brussels-based investor RHJ International SA. GM has a tentative deal with the Magna group but has continued talks with RHJ.

The company said Opel's cash situation is stable because of improving sales, but it could see difficulty late in the fourth quarter.

Whitacre said he is encouraged by GM's products. The company now must improve in selling and marketing them, he said.

FDA: Arthritis drugs pose cancer risk to children

WASHINGTON – Federal regulators on Tuesday added stronger warnings to a group of best-selling drugs used to treat arthritis and other inflammatory diseases, saying they can increase the risk of cancer in children and adolescents.

After more than a year of review, Food and Drug Administration scientists said the drugs appear to increase the risk of cancer after they are used beyond 2 1/2 years. The agency studied several dozen reports of cancer in children taking the drugs, some of which were fatal. Half of the cases were lymphomas, a cancer that attacks the immune system.

The drugs are known as tumor necrosis factor blockers and work by neutralizing a protein that, when overproduced, causes inflammation and damage to bones, cartilage and other tissue. The drugs are prescribed to children with rheumatoid arthritis, inflammatory bowel disorder and Crohn's disease.

The FDA will bolster the "black box" warning on the five drugs sold in the U.S., including Abbott Laboratories' Humira, Johnson & Johnson's Remicade and Simponi, and Enbrel which is co-marketed by Amgen Inc. and Wyeth. All the products are multibillion-dollar sellers. Enbrel was the biggest moneymaker of the group with sales of $3.4 billion last year.

The action also affects Belgian drugmaker UCB's Cimzia, which launched in May.

Shares of North Chicago-based Abbott Laboratories and New Brunswick, N.J.-based J&J fell after the FDA announcement.

Along with updating the drugs' labels, the FDA is requiring companies to add information about cancer risks to the medication guides given to patients. The FDA said it is also working with the manufacturers to further define the scope of the cancer risk.

J&J said in a statement it "will coordinate closely with the FDA to ensure that health care providers, patients and caregivers are properly informed."

Amgen and Wyeth said they will continue working with regulators to evaluate "the potential risks and benefits" of their drug.

U.S. jobs, services data raise recovery worries

NEW YORK (Reuters) – U.S. private employers cut more jobs than expected last month and the vast services sector contracted again, stoking concern about the strength of a U.S. recovery, data showed on Wednesday.

In addition, U.S. firms planned to increase layoffs in July for the first time in six months, another report showed, increasing investor anxiety about the government's unemployment report for July due on Friday.

"We're looking at a U-shaped recovery, which means getting off the bottom is going to be a lot more difficult than people are anticipating in the market," said Doug Roberts, chief investment strategist at Channel Capital Research in Shrewsbury, New Jersey.

Wall Street stocks fell, snapping a four-day winning streak, while the dollar dipped against the Japanese yen but rose against the euro.

American private employers cut 371,000 jobs last month, according to the ADP Employer Services report, jointly developed with Macroeconomic Advisers LLC.

That was less than 463,000 cuts in June but above the 345,000 job losses economists had expected for July.

Outplacement consultancy Challenger, Gray & Christmas, Inc. also reported that U.S. firms' layoff plans in July surged 31 percent compared with June, which had marked a 15-month low.

Labor market strains were evident in the services sector, which comprises 80 percent of U.S. economic output. The Institute for Supply Management said its services index fell to 46.4 last month from 47.0 in June.

Economists had expected the number to rise to 48.0, closer to the dividing line between growth and contraction at 50. The last time the index was above 50 was August of 2008.

"This is not good news for the labor market, given the disappointing ADP reading," said Richard DeKaser, president of Woodley Park Research in Washington. "These are not good numbers in the same day."

A Reuters poll of economists predicted Friday's payrolls report, which includes private and public employment, would show 320,000 job cuts in July, down from 467,000 in June.

The White House said the Labor Department report will show hundreds of thousands more lost jobs in July.

HOUSING HOPES

Recent data has painted a mixed picture of U.S. economic health, with the ISM's manufacturing index earlier this week showing a slower-than-expected contraction in July.

Investors gleaned a glimmer of hope from a Commerce Department report showing new orders at U.S. factories unexpectedly rose in June, though DeKaser said that was driven by factories "eking out gains due to low inventories."

He added, "there is a clear lag in the recovery in the services sector, which reflects the anemic consumer part of the economy."

In a separate report, the Mortgage Bankers Association said demand for U.S. home loans rose last week as a three-week low in 30-year fixed mortgage rates boosted applications for refinancing.

That came a day after U.S. data showed pending home sales jumped 3.6 percent in June, adding to hope that U.S. home prices may finally be nearing the end of a precipitous fall.

"Most folks are hopeful, based on all the numbers we've been seeing, that we've got a floor here and we're going to start seeing a long, slow recovery." said Jonathan Corr, chief strategy officer at Pleasanton, California-based mortgage software provider Ellie Mae.

But hopes on this front also came with a caveat, and analysts said a swift rebound from the housing market's worst slump since the Great Depression is not on the horizon.

Demand for mortgages to buy new homes -- rather than to refinance existing debt -- remains weak, with purchase loan requests rising just 0.9 percent last week, the MBA said.

"We can't march around in victory yet," Corr said, "but we're starting to see the light at the end of the tunnel."

(Additional reporting by Chris Reese, Lynn Adler, Mary Rowe and Richard Leong; Editing by Kenneth Barry)

Marsh & McLennan posts loss on impairment charge

NEW YORK – Marsh & McLennan Cos. said Wednesday it recorded a loss in the second quarter because of an impairment charge tied to the value of one of its divisions.

Excluding the special charge, Marsh & McLennan was able to turn a profit that narrowly beat analysts' expectations as the New York-based insurance broker and consulting firm said profitability improved in its core risk and insurance services segment.

However, ongoing weakness in the economy continued to hurt its consulting businesses.

Overall, Marsh & McLennan lost $193 million, or 37 cents per share. It earned $65 million, or 12 cents per share, during the same quarter last year.

The quarterly loss was the result of a $315 million goodwill impairment charge taken against the value of its corporate security business, Kroll. The charge reduced results by 60 cents per share.

Marsh & McLennan took the charge after reviewing Kroll's operations amid the sale in the second quarter of Kroll Government Services, a government security clearance screening business.

Excluding the impairment charge and other one-time items, Marsh & McLennan earned 33 cents per share, topping analysts expectations by 1 cent. Analysts typically do not include special charges in their estimates.

Shares of Marsh & McLennan rose 95 cents, or 4.4 percent, to $22.45 in morning trading.

Like many other companies that have reported earnings in recent weeks, profits were helped by cutting costs and not necessarily from generating revenue.

Marsh & McLennan said its revenue fell 13 percent to $2.63 billion from $3.03 billion last year. Revenue declined in each of Marsh & McLennan's three major operating divisions; risk and insurance services, consulting and risk consulting and technology.

Analysts polled by Thomson Reuters, on average, forecast revenue of $2.76 billion.

Risk and insurance services revenue fell 5 percent to $1.34 billion primarily due to a decline in interest income. However, operating income rose sharply because of improvements at both Marsh and Guy Carpenter, its two risk and insurance services subsidiaries.

Marsh's profitability improved because of cost-cutting measures. Guy Carpenter's earnings were bolstered by an increase in business and expense reductions.

"Overall, we were pleased with the revenue levels we saw in the second quarter," Brian Duperreault, Marsh & McLennan's CEO said during a conference call about Marsh's insurance services segment. "That, coupled with expense discipline, led to marked improvement in Marsh's profitability."

Consulting revenue fell 17 percent to $1.14 billion due to steep declines at both Mercer and Oliver Wyman Group.

"For Oliver Wyman, the operating environment continues to be the most challenging one they have faced in years," Duperreault said. He noted declines in financial services consulting at Oliver Wyman, its largest practice, have moderated in 2009 after plummeting during the peak of the credit crisis late in 2008. Business at Oliver Wyman's manufacturing, transportation and energy group also slowed during the second quarter, Duperreault said.

Profitability in the consulting segment was also hurt by $30 million in liability costs, which were mostly tied to a legal settlement at Mercer. Foreign currency translation also hurt operating income in Marsh & McLennan's consulting division.

Revenue from the risk consulting and technology division, which includes Kroll, fell 40 percent to $161 million.

Despite the mixed performance of its businesses, Marsh & McLennan could be poised for growth either through expanding current businesses or acquisitions. During the conference call, Duperreault said the company has plenty of cash available, and it is interested in growing operations.

"We've spent a lot of time in the last 18 months and the last six months trying to get our company in good order to go from defense to offense," Duperreault said. "And I think we are in a position to do that."

During the second quarter, Marsh & McLennan paid off $400 million in senior notes that were due in June. The company had $1.3 billion in cash and cash equivalents sitting on its balance sheet at the end of the quarter.

Factory orders unexpectedly increase in June

WASHINGTON – Factory orders rose in June for the fourth time in five months, an unexpected gain and the latest sign of recovery in the ailing manufacturing sector.

The Commerce Department said Wednesday that factory orders rose 0.4 percent, after a 1.1 percent increase in May. Economists expected a 1 percent drop, according to a survey by Thomson Reuters.

A 2.7 percent rise in orders for nondurable goods, such as chemicals and textiles, was the most since June 2008 and drove the overall increase. Orders for petroleum and coal products jumped 13.2 percent, as the price of oil rose. Wholesale oil prices rose 18.5 percent in June, according to economists at JPMorgan Chase & Co.

Orders for durable goods, big-ticket items such as aircraft and appliances, fell 2.2 percent. Commercial aircraft orders, a volatile category, fell 38.6 percent after rising 60.4 percent in May.

Still, there were signs of strength in durable goods. Orders for cars and auto parts rose 1.5 percent, and orders also increased for iron and steel mills and construction machinery.

Orders for non-defense capital goods excluding aircraft, a key measure of business investment, rose 2.6 percent, the second consecutive increase.

Other recent news on manufacturing also has been positive. The Institute for Supply Management, a trade group, said Monday that manufacturing activity in July contracted at the slowest pace in almost a year.

The institute's index of manufacturing activity was 48.9, up from 44.8 in June. Readings below 50 indicate that economic activity contracted, but the survey's chair expects the figure will top that threshold next month for the first time since January 2008.

The auto industry is benefiting from the government's "cash for clunkers" program, which has spurred thousands of people to trade in older vehicles for new cars.

Ford Motor Co. said this week that its sales rose 2.4 percent in July from the same month last year, its first year-over-year increase since November 2007. Chrysler Group LLC posted a smaller year-over-year sales drop compared with recent months, helped by "clunkers" deals. GM's sales fell 19.4 percent, a slower pace than earlier this year.

Top Stories

Obama says Indiana 'factories coming back to life'

WAKARUSA, Ind. – Trumpeting a "made in America" message, President Barack Obama on Wednesday unveiled a national investment in electric cars as the latest effort to rebuild an economy that keeps shedding jobs.

"We know that, even in the hardest times, against the toughest odds, we have never surrendered. We don't give up," Obama told employees on the steamy factory floor of an RV maker in northern Indiana, a region suffering from one of the worst unemployment surges in the nation.

"We don't surrender our fates to chance. We have always endured. We have worked hard, and we have fought for our future."

Obama's comments mixed a pep talk with a defense of his economic agenda. In the heart of small-community America, he relied heavily on a pro-America spirit.

"I'm committed to a strategy that ensures that America leads," said Obama, promoting a $2.4 billion program of grants to build up electric-car manufacturing, from batteries to motors.

Venturing back to a region reeling from deep unemployment, Obama's latest mission in Indiana is to show that the costly stimulus plan he lobbied for is producing tangible help — in the form of tens of thousands of jobs.

He spoke near the border region of Michigan and Indiana, the two states that will benefit the most from the grants. The money is part of a $787 billion stimulus program approved by Congress at Obama's urging — one he defended Wednesday amid criticism the plan has been slow to kick in.

For his backdrop, he chose Monaco RV, purchased in June by Navistar International Corp. after its previous owner went bankrupt because of the collapse in the recreational vehicle industry. Indiana's Elkhart-Goshen area had an unemployment rate of 16.8 percent in June. That's up 10 percentage points from last year.

In an interview, Obama said it was fair for his presidency's economic performance to be judged on Elkhart's.

"Our whole goal is to first of all rescue the economy from the brink," he told MSNBC. "But the most important thing we're going to have to do is help Elkhart reinvent itself."

The grants Obama announced Wednesday will be split among nearly 50 projects in 25 states, with the biggest shares going to Indiana and Michigan to create job opportunities in the automotive industry.

Grant recipients include Johnson Controls Inc., of Milwaukee, $299 million to build battery packs and cells for hybrid vehicles at a facility in Holland, Mich.; General Motors Co., $241 million to produce battery packs and the develop electric drive vehicles in Michigan and Maryland; and Ford Motor Co., $92.7 million for electric drive components at plants in Michigan and Missouri.

As Obama tries to convince Americans that his economic policy is working, at stake is the kind of public support that could influence his success on related matters, such as health care legislation, as Republican criticism mounts and public skepticism of the stimulus looms.

Signs of economic recovery have started to emerge in key areas such as housing and manufacturing. But jobs are the key to success — for individuals, for families, for politicians — and those haven't begun returning yet.

Overall, U.S. unemployment hit 9.5 percent in June, the highest level in 26 years.

New monthly numbers come out Friday, and the White House has been trying for weeks to set expectations that joblessness will worsen before it gets better.

The American public is still uneasy. A total of 79 percent of people describe the economy as "poor," according to an AP-GfK Poll.

And Obama's approval rating on the economy is now at 50 percent, the same poll found, down from 58 percent in April.

Clunkers' rebates look likely for another month

WASHINGTON – Pressing colleagues to replenish the "cash-for-clunkers" program, Senate Majority Leader Harry Reid warned lawmakers they might miss their August vacation takeoff plans Friday if they don't quickly pass the $2 billion measure.

"If we don't work something out on the cash for clunkers," Reid said from the Senate floor Wednesday morning, he would file motions to close debate. Under Senate procedure, that could mean votes on both Friday and Saturday, when lawmakers would otherwise be scattering for their coveted summer break.

"We all acknowledge there's a significant majority that want to move forward with this legislation," said Reid, D-Nev.

It was the senatorial version of a parents' warning to bickering children: Work it out, or the car will be turned around instantly.

There was every indication that lawmakers would extend the popular program, which offers car buyers rebates of up to $4,500 for trading in their gas-guzzlers for new, higher-mileage models.

Reid had said on Tuesday that he had the votes to pass a $2 billion extension already approved by the House, the amount President Barack Obama says is necessary to meet a surging demand that would otherwise deplete the program by Friday. He said Wednesday there are estimates that as many as 300,000 vehicles have been bought under the program.

Many Republicans oppose the plan — and some Democrats have concerns as well. But none was predicting that any senator would block or delay a vote.

"The matter will be completed," said Senate Republican Leader Mitch McConnell of Kentucky.

The funding would triple the cost of $1 billion rebate program and give as many as a half-million more Americans the chance to grab the new car incentives through September.

Car companies have credited the clunkers program with driving up sales in late July. Most consumers are buying smaller, more fuel-efficient vehicles under the program, according to a list of the top-10 selling cars released by the National Highway Traffic Safety Administration.

The list includes Honda Civics, Toyota Corollas and Dodge Calibers. The Toyota Prius hybrid, which gets 46 miles per gallon, according to EPA estimates, is the fourth-best-selling car. There is one SUV on the list, the Ford Escape, which also comes in a hybrid model that can get up to 32 miles per gallon. With the exception of the Prius, which is built in Japan, most of the top-selling vehicles on the list are built in North America. The Hyundai Elantra, the 8th top-selling vehicle, is built in South Korea, and the Honda Fit, the 9th top-selling vehicle, is made in Japan.

Senate passage would send the legislation to the White House for Obama's signature and assure consumers there will be no interruption in the program that has led to packed car dealerships nationwide.

Republicans still were seeking a chance to amend the House version. Sen. John Thune, R-S.D., said Republicans were considering a range of amendments that included placing a financial cap on the program or a date by when it must end, along with requests that it not drive up the federal deficit. He said it was still under discussion among Senate leaders.

Democratic Sens. Tom Harkin of Iowa and Patrick Leahy of Vermont also voiced concerns but opposition to extending the program had been dissipating all week.

The legislation would transfer $2 billion from an economic stimulus account that had been set aside to subsidize renewable energy. The new money would carry the program through September, White House Press Secretary Robert Gibbs said.

White House reverses statement on Iran election

ABOARD AIR FORCE ONE (Reuters) – White House spokesman Robert Gibbs on Wednesday said he had misspoken in calling Mahmoud Ahmadinejad Iran's elected leader and that Washington will let the Iranian people decide whether Iran's election was fair.

"Let me correct a little bit of what I said yesterday. I denoted that Mr. Ahmadinejad was the elected leader of Iran. I would say that's not for me to pass judgment on," Gibbs told reporters aboard Air Force One.

"He's been inaugurated. That's a fact. Whether any election was fair, obviously the Iranian people still have questions about that, and we'll let them decide about that."

Mahmoud Ahmadinejad was sworn in as Iran's president on Wednesday in a ceremony boycotted by reformist leaders and parliamentarians and marred by street protests over his victory.

The 53-year-old hard-liner took his oath of office nearly eight weeks after a disputed election that unleashed Iran's worst unrest since the 1979 Islamic revolution and divided the political and clerical elite.

Obama and the leaders of France, Britain, Italy and Germany have all decided not to congratulate Ahmadinejad on his re-election. Gibbs had called Ahmadinejad Iran's "elected leader" on Tuesday during a briefing.

Police: Pa. man who attacked gym had 4 guns

BRIDGEVILLE, Pa. – Police in Pennsylvania say a gunman who sprayed bullets at women exercising at his suburban Pittsburgh health club, killing three of them, did not have a relationship with any of the victims. Allegheny County police Superintendent Charles Moffatt also says that the 48-year-old gunman, George Sodini, had four guns on him and used three of them in the attack.

Sodini was a member of the L.A. Fitness club and had been there two times Tuesday before he came back at night.

Sodini killed three women and wounded nine others. He then killed himself.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

BRIDGEVILLE, Pa. (AP) — A man who sprayed bullets into a fitness class filled with women, killing three and then himself, apparently kept a Web page in which he wrote about years of rejection by women and an earlier plan for violence at the gym in which he said he "chickened out."

Neighbors described 48-year-old George Sodini, who worked in a law firm's finance department, as anti-social, and the Web page in his name showcased a resume setting forth his credentials as an unhappy loner. It listed his date of death — Aug. 4, 2009 — and his status of "Never married."

He complained of not having a girlfriend since 1984, not having a date since May 2008 and not having sex for 19 years.

"Women just don't like me. There are 30 million desirable women in the US (my estimate) and I cannot find one," he wrote. The page ended with the words "Death Lives!

On Tuesday night, the gunman walked into his gym wearing workout gear and a headband, entered a "Latin impact" dance aerobics class and placed a duffel bag on the ground. He rooted around in the bag for a moment, turned off the lights, took out at least two guns and started shooting.

Three women were killed and nine women were wounded. Police say he may have fired as many as 52 shots before turning the gun on himself and committing suicide.

"He walked right into the room where the shootings occurred as if he knew exactly where he was going," Allegheny County police Superintendent Charles Moffatt said. "I think he went in with the idea of doing what he did."

Authorities on Wednesday identified the gunman as Sodini, of nearby Scott Township. The three women who died were Heidi Overmier, 46, of Carnegie; Elizabeth Gannon, 49, of Pittsburgh; and Jody Billingsley, 38, of Mount Lebanon.

The 4,610-word Web page, on a domain registered in Sodini's name, appeared to be a nine-month chronology of his plans for the shooting, his decision to delay it and the process that led to the eventual carnage at his health club Tuesday. Authorities did not immediately confirm that the site belonged to Sodini, but the elaborate nature of the comments suggested authenticity.

"The biggest problem of all is not having relationships or friends, but not being able to achieve and acquire what I desire in those or many other areas," said an entry dated Sunday. "Everthing stays the same regardless of the effert I put in. If I had control over my life then I would be happier. But for about the past 30 years, I have not."

The Web site's author wrote of planning the attack since at least November and had tried to do it when the same Tuesday-night dance aerobics class he targeted met on Jan. 6.

"It is 8:45PM: I chickened out!" he wrote. "I brought the loaded guns, everything. Hell!"

A neighbor of Sodini's, Connie Fontanesi, said she was interviewed by county detectives Tuesday evening.

"He was so anti-social we really didn't learn anything personal about him," she said.

Mike Rick, a spokesman for the Pittsburgh law firm of K&L Gates, said the alleged shooter worked as a systems analyst in the firm's accounting and finance department since 1999. The firm was "deeply saddened by last night's events" and offered condolences to the friends and families of the victims, Rick said in a statement Wednesday.

The violence rocked the suburban Pittsburgh town of about 5,300 residents some eight miles southwest of downtown.

Jordan Solomon, 14, of Mount Lebanon, was in the all-female class and told The Associated Press on Wednesday that it started normally, but she thought it weird when a man walked into the class about 15 minutes later. Solomon said the man put a black duffel bag on the ground.

"He had a sweatband on his head. He was shuffling around in (the bag)," Solomon said. "All of a sudden all the lights went out and I turned around, he started firing. I turned around and I saw him holding a gun."

The man was expressionless, she said, and she didn't hear him say anything.

Solomon said she immediately started to run out of the room and into the parking lot, where she ran into a nearby restaurant and told workers there to call 911.

The gunman fired multiple weapons "indiscriminately" and didn't say anything before unleashing a burst of bullets, Moffatt said. Moffatt said police recovered at least two guns from the scene and a note from the shooter's duffel bag, but he would not say who wrote it.

"I don't think anyone could have stopped him," Moffatt said.

Five of the wounded victims arrived in critical condition at UPMC Mercy Hospital, but three of them were upgraded to serious condition by early Wednesday. Two women remained in fair condition at another Pittsburgh hospital. One victim was treated and released for a shoulder wound and a woman with a bullet wound to the knee remained in stable condition Wednesday.

Authorities initially had difficulty identifying the victims, because they had workout clothes on and weren't carrying wallets, Moffatt said.

Loretta Moss, 44, of McDonald, said she was exercising on a treadmill when she heard a popping noise.

"I didn't pay any attention, and the next minute, people were screaming," said Moss, who had come to the gym Tuesday night for the first time in a couple of weeks. She said she then heard more pops.

"There was like a whole spray of them. I'd say about 15 altogether, and then people started screaming and yelling and started running out the building," she said.

"We laid down, and then after the last set of ... gunshots, we got up, and someone said, 'run.'"

Biden: Mich. to get $1B in advanced vehicle grants

DETROIT – Vice President Joe Biden said Wednesday the U.S. has an opportunity to help build a new foundation for the economy through $2.4 billion in federal grants to develop next-generation electric vehicles and batteries.

Biden made the announcement in Michigan, which is garnering more than $1 billion and is the largest recipient of the grants. He told an audience of about 300 in Detroit that the U.S. needs to build on the city's rich automotive past to help the state and national economic recovery.

"We have a tremendous opportunity here, right here in Detroit, to invest in our vehicle fleet, shifting toward electrification," he said.

Biden spoke on a stage outside NextEnergy, a nonprofit that works with businesses on research involving alternative and renewable energy.

The Obama administration said 11 Michigan manufacturers and research facilities will receive grants. Forty-eight projects in 25 states will create or retain tens of thousands of jobs.

Michigan and Indiana combined will receive the largest portion of the grant money. Battery makers, along with General Motors Co., Ford Motor Co., Chrysler LLC and Dow Chemical Co., are receiving grants.

The Detroit Three automakers will receive more than $400 million to manufacture thousands of advanced hybrid and electric vehicles as well as batteries and electric cars.

A123 Systems Inc. and Johnson Controls will receive about $550 million to establish a manufacturing base in Michigan for advanced batteries. Two others, Compact Power and a Dow joint venture called KD Advanced Battery Manufacturing, will receive more than $300 million for making battery cells and materials.

The University of Michigan, Wayne State University and Michigan Technological University in Houghton in the Upper Peninsula will receive more than $10 million for education and work force training programs and other purposes.

"There's no reason why ... the United States of America cannot lead and will not lead the 21st century in the manufacture of automobiles again," Biden said. "You can do it. We can help you get there."

Democratic Gov. Jennifer Granholm said an independent analysis performed by Michigan State University estimates that if the primary companies and facilities who received grants are successful in their development plans, they could create about 30,000 jobs by 2020 — 6,800 within 1 1/2 years.

Granholm said the announcement creates "a whole new sector within the auto industry" that will be established in Michigan, which earlier this year created $700 million in battery tax credits.

"It's not the only answer, but it's an important step for the diversification of Michigan," she said.

Dow CEO Andrew Liveris said each grant is "an enabler to the state" that can lure engineers and scientists, and employ displaced manufacturing workers.

LA police chief Bratton stepping down

LOS ANGELES – Police Chief William Bratton is stepping down after a seven-year tenure in which he instituted major reforms of the once-scandalized Police Department, the City Council president said Wednesday.

Bratton, 61, disclosed the surprise decision in a phone call, Councilman Eric Garcetti said.

"The people of Los Angeles are safer than they've been in half a lifetime," Garcetti said, crediting Bratton for reforms and for knocking down the crime rate to levels not seen in decades.

"This chapter in our policing history is an extremely positive one," he said.

The department said Bratton planned a midday news conference with Mayor Antonio Villaraigosa.

Bratton's decision came just weeks after a judge released the department from eight years of oversight by the U.S. Department of Justice, which had alleged a long pattern of abuse.

Bratton declared then that his police force had become "a leader in creating positive change."

Although he chafed under previous extensions of the decree, Bratton said recently that he had "embraced" it.

"I understood from the get-go that if we could achieve compliance ... we would achieve the spirit and the intent — the spirit being that a police organization that was professional, that was trusted, would do more to reduce crime, do more to improve community relations," he said.

Under Bratton, Los Angeles has seen declining crime rates since 2003.

Calls to Bratton spokeswoman Mary Grady were not immediately returned.

African-American commentator and community activist Earl Ofari Hutchinson said Bratton's departure will be a "tremendous blow" to the city.

"Bratton did more than any other chief in recent times to really push the envelope on reform, minority recruitment, community policing, resolving tensions in Los Angeles between minority communities and the Police Department," Hutchinson said.

Bratton changed "the culture of the department that was seen as brutal and oppressive to a department that is seen and regarded and hailed as a department that is committed and dedicated to a true partnership with community residents and organizations," he said.

Bratton was picked to lead the Los Angeles department in 2002 after heading police forces in New York City and Boston.

At the time, Los Angeles police were still struggling to emerge from under the clouds of the 1991 Rodney King beating and the Rampart police corruption scandal later in the decade.

Bratton is two years into his second and final five-year term. The City Charter would have to be changed for him to serve a third term.

Los Angeles police chiefs once enjoyed unlimited tenures. Changes in the charter under reforms driven by the King beating and resulting 1992 riot led to limits.

One goal of the Bratton administration was to make the force more closely resemble the city.

The 10,000-officer force is now 42 percent Hispanic, 37 percent Caucasian, 12 percent black and 7 percent Asian, according to Gerald Chaleff, the civilian administrator in charge of the department's reform office.

Eric Rose, a spokesman for the LAPD's union, said he could not comment until he'd received confirmation of Bratton's plans.

Andre Birotte, the department's inspector general, who oversees internal investigations, said he was surprised and disappointed by Bratton's departure.

"He has made a lot of changes in the department and his reputation for transparency will be one of the hallmarks of his tenure," Birotte said.

Iraq to impose controls on Internet

BAGHDAD - The Iraqi government has decided to crack down on Internet service providers and ban sites that incite violence or carry pornography, officials said Tuesday, a move that has been strongly criticized by freedom of speech advocates as a dangerous first step toward political censorship.

The plan to strengthen government control of content and usage will require Internet cafes — and later the service providers as well — to obtain licenses that are subject to government review and cancellation if compliance requirements are not met.

"All Web sites that glorify terrorism and incite violence and sectarianism, or those that violate social morals with content such as pornography will be banned," communications ministry spokesman Sameer al-Hasoon told The Associated Press by phone Tuesday.

Al-Hasoon refused to divulge further details of the committee's recommendations, but said he expected them to be approved by the Cabinet next week. The next step would be for the government to send the draft legislation to parliament.

Another official said the ministry is planning to license five of the 10 wireless Internet service providers currently operating in Iraq. He refused to say why the five were chosen, but said the tightened restrictions will implemented in coordination with the Interior Ministry's anti-Internet crimes directorate.

The official spoke on condition of anonymity as he was not authorized to make statements to the media.

The plan to tighten government controls has raised concerns about the protection of constitutional freedoms. Since the fall of Saddam Hussein in 2003, Iraq has had relatively lax restrictions on Internet providers compared with some of its Muslim neighbors.

The officials said their concern is primarily over sites that promote violence. They also say they want to ensure that the online fare readily available at Internet cafes does not get too far out of step with Iraq's social mores.

But the Baghdad-based independent Journalistic Freedom Observatory denounced the step as an "attempt to control the flow of free information on the Internet and limit the knowledge of the citizens."

The JFO also claimed the plan violates the Iraqi constitution, which guarantees the freedom of mail, telegrams, phone and electronic communications. The constitution, enacted in 2005, says such communications cannot be "monitored, tabbed or revealed."

"Excuses of protecting national security or moral standards are unacceptable," the JFO said in a statement. "It is only being used to censor Internet service and control freedom of expression."

The group said the plan opens the door for tighter controls, particularly over political discussions, dissent or debate on issues that are sensitive to the government.

It says the controls are a throwback to the days of Saddam, when access to the Internet was limited to just one provider and e-mail and phone calls were monitored and censored by the Ministry of Communications and security agencies.

After Saddam was toppled in the 2003 U.S.-led invasion, dozens of wireless Internet providers started business and hundreds of Internet cafes were opened in the capital, Baghdad, and other provinces.

"No one opposes blacking out web sites that offer pornography because of the damage such sites bring to society," said Hassan al-Kaabi, the 26-year-old owner of an Internet cafe in Baghdad's eastern Shiite neighborhood of Sadr City. "But the government decision that deals with web sites that incite violence and terrorism is vague and needs more clarification."

Al-Kaabi, who has 12 computers and offers wireless service to about 80 subscribers, said he is worried about his future and the gains Iraq has made since Saddam's ouster.

"This is just like a trap to me," he said. "This will definitely affect our business."