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Correction: Dwindling Bathhouses story

Written By Unknown on Kamis, 28 Agustus 2014 | 00.32

LOS ANGELES — In a story Aug. 23 about the declining number of gay bathhouses The Associated Press reported erroneously that Todd Saporito, the CEO of Ohio-based Flex Spas, ran the Gay Games that were held in Cleveland. Saporito held events at his bathhouse and nightclub in conjunction with the games but was not involved in running the event.

A corrected version of the story is below:

Gay bathhouses nationwide face uncertain future

As gay acceptance rises and hooking up goes online, US bathhouses adapt to stay in business

By MATT HAMILTON

Associated Press

LOS ANGELES (AP) — Gay bathhouses that once remained in the shadows to stay in business are now seeking attention to keep their doors open.

Some are doing aggressive online advertising and community outreach. Others tout their upscale amenities like plush towels and marble baths. A bathhouse in Ohio has even added hotel rooms and a nightclub.

Gone are the days when bathhouses drew crowds just by offering a discreet place for gays to meet, share saunas and, often, have sex.

"The acceptance of gays has changed the whole world. It's taken away the need to sneak into back-alley places," said Dennis Holding, 75, who owns a Miami-based bathhouse.

In the heyday of bathhouses in the late 1970s, there were nearly 200 gay bathhouses in cities across the U.S., but by 1990, the total had dropped to approximately 90, according to Damron, the publisher of an annual gay travel guide. In the last decade, bathhouses, including ones in San Diego, Syracuse, Seattle and San Antonio, have shut down and the total nationwide is less than 70. Most patrons are older.

Hollywood Spa — one of the largest bathhouses in Los Angeles, a city regarded as the country's bathhouse capital — closed in April. Owner Peter D. Sykes said fewer customers and rising rent put an end to four decades in business.

"Bathhouses were like dirty bookstores and parks: a venue to meet people," said Sykes, who still owns the smaller North Hollywood Spa. "Today, you can go to the supermarket."

Bathhouses date to the Roman Empire. In the 19th and early 20th centuries, American bathhouses were built in many cities to maintain public hygiene among poor and immigrant communities. Chicago and Manhattan each had about 20 public bathhouses.

But the need for public places to wash up declined and by the 1950s and '60s, bathhouses largely had become rendezvous spots for gays, prompting occasional raids because sodomy was still criminalized.

Privately run, gay-owned bathhouses proliferated in the 1970s, offering a haven for gay and bisexual men to meet. Clubs like New York City's Continental bathhouse and Los Angeles' 8709 Club saw a steady stream of patrons.

Each venue was operated like a speakeasy: a nondescript building often located in the urban fringe. In-house entertainment was common, from DJs to live performers. Bette Midler even launched her career from the stage of the Continental.

Amid the AIDS epidemic in the early 1980s, bathhouses were vilified for enabling promiscuity and helping spread the disease, and many either closed voluntarily or by legal pressure. Those that remained were stigmatized, and now many younger gays see them as anachronisms.

"The younger generation's main fear is that it's some dark, seedy place," said T.J. Nibbio, the executive director of the North American Bathhouse Association. NABA formed two years ago for bathhouse owners to pool best practices for marketing and operations.

To attract younger patrons, some bathhouses offer steep discounts, cutting admission by as much as 60 percent. At the three-story Midtowne Spa in downtown Los Angeles, 18- to 20-year-olds get in for $5 any time. On Tuesdays, Los Angeles' Melrose Spa lets those 18 to 25 in for free, a deal that brought 22-year-old Brett Sparks on a recent midweek visit.

"You're either hooking up online or you are here, or you go to bars in West Hollywood, get drunk and hook up," said Sparks, acknowledging that although the bathhouse crowd skews older, it's not as risky as going home with a stranger. "Here it's a safer environment — there's condoms and other protection."

The CEO of Ohio-based Flex Spas, Todd Saporito, has positioned his bathhouse chain as a pillar of the gay community. Saporito uses the chain's Cleveland-based flagship spa, whose 50,000 square feet include luxury hotel rooms and a nightclub, to run the city's annual pride parade. He also held events there for this year's Gay Games, an international LGBT athletic competition.

Flex Spas also has sponsored the White Party, an annual electronic music festival in Palm Springs, and partnered with the AIDS Healthcare Foundation, part of an effort to frame the bathhouse as an opportunity for preventing risky behavior.

Flex Spas has had mixed success over the past few years. Its location in Atlanta has seen "exponential" growth, but clubs in New Orleans and Columbus, Ohio, have closed, Saporito said.

Saporito said more progressive views on homosexuality aren't evenly spread across the country, underscoring the need for modern bathhouses in some areas. Still, he takes nothing for granted, regardless of the location.

"Bathhouses at some level will go extinct if you don't offer something more than a towel," Saporito said.


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US economy forecast to grow by 1.5 percent in 2014

WASHINGTON — The Congressional Budget Office on Wednesday forecast that the U.S. economy will grow by just 1.5 percent in 2014, undermined by a poor performance during the first three months of the year.

The new assessment was considerably more pessimistic than the Obama administration's, which predicted last month that the economy would expand by 2.6 percent this year even though it contracted by an annual rate of 2.1 percent in the first quarter.

The economy did grow by 0.9 percent during the first half of 2014.

Looking ahead, the CBO said it expected the economy to grow by 3.4 percent over 2015 and 2016, and predicted that the unemployment rate would remain below 6 percent into the future.

The economy went into reverse at the beginning of this year, reeling from an unusually harsh winter that disrupted consumer spending, factory production and other business activity.

Growth in the gross domestic product, the economy's total output of goods and services, recovered in the second quarter, advancing at an annual rate of 4 percent, according to the government's first estimate. That forecast will be revised on Thursday.

Even with the rebound, economists have lowered their outlook for the entire year, given the weak start. Economists at JPMorgan Chase are forecasting that the economy will grow by 1.9 percent this year, when measured from the fourth quarter, down from 3.1 percent in 2013.

The CBO also projected that the government would run a deficit of $506 billion for the budget year that ends Sept. 30. That would be the lowest level of Barack Obama's presidency.

When the deficit is measured against the size of the economy, the comparison used most by analysts, it is within historic levels at 2.9 percent of GDP. Last year's deficit was $680 billion.

The deficit spiked at $1.4 trillion in Obama's first year in office and remained above $1 trillion for his entire first term.

The CBO foresees a slight increase from its earlier $492 billion projection of this year's deficit in part because of a decline in expected corporate tax receipts. But it see modest improvement over the coming decade compared with earlier forecasts, in large part because it predicts lower-than-expected interest payments on the national debt.

Obama inherited a recession and a trillion-dollar-plus deficit picture when he took office in the aftermath of the 2008 fiscal crisis. The economy has recovered more slowly than hoped; some of the recent drop in the jobless rate is due to frustrated job-seekers leaving the labor market.

"There is no question we have made progress — businesses have added 9.9 million jobs over 53 straight months of job growth," said Maryland Rep. Chris Van Hollen, the top Democrat on the House Budget Committee. "But there is more we need to do."

The report confirms a trend of short-term improvement in the deficit but an unsustainable long-term fiscal path if Washington doesn't cut spending or raise additional revenue.

Over the long term, the CBO said "the large and increasing amount of federal debt would have serious negative consequences" including the risk of a crisis that could raise interest rates.

All told, the CBO predicted that the government would add $7.2 trillion to the national debt over the coming decade, bringing the total debt to $26.6 trillion by 2024.

The latest numbers come as the GOP-controlled House and Obama are taking a break from the budget, debt and tax battles that have flared up several times since Republicans won back the House in 2010.

One of the biggest unresolved issue facing lawmakers when they return to Washington next month is the fate of dozens of popular expired tax breaks for businesses and individuals. Those breaks, if renewed, could add almost $140 billion to next year's deficit.

Obama did not see attacking the deficit as a priority during his first term. Republicans forced him to the negotiating table in 2011 and extracted more than $2 trillion in spending cuts over the following decade, though little of that savings came from big benefit programs such as Medicare.

___

AP Economics Writer Martin Crutsinger contributed to this report.


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VMA Awards, rising 'Big Brother' top week's ratings

CBS' "Big Brother" had its best week of the summer and claimed the top three series spots in the weekly demo rankings, but it was no match for MTV's "Video Music Awards."

Though it was down from last year, the Sunday awards show remains a popular draw among adults under 50 -- attracting about as many as the Primetime Emmys one night later on NBC.

It was another transitional week overall, with lots of coming and goings in primetime, including the final episode of HBO's "True Blood," the season-ender of hot rookie drama "The Last Ship" on TNT and a record-setting season premiere for BBC America's "Doctor Who."

It was also a big week for pro football -- the first of many over the next five months -- as three NFL preseason games cracked the top 15 in adults 18-49. In a surprise, it was ESPN's Monday matchup between Cleveland and Washington drawing the most young adults of the three (2.3 rating/9 share in the demo) as audiences tuned in to see Browns rookie quarterback Johnny Manziel; in total viewers (6.90 million), it was the biggest tune-in for a preseason game on the cabler in five years.

Of note outside of primetime, the U.S. Championship game of the Little League World Series on ABC (Chicago vs. Las Vegas) drew a 12-year-high with 5.19 million viewers on Saturday afternoon.

And over at FXX, the first few days of its "The Simpsons" marathon helped the nascent net stand as the 21st most popular cable network in total-day averages for the week -- a huge jump from its 65th place finish one week earlier.

According to "live plus same-day" estimates from Nielsen for the week of Aug. 18-24, Univision finished on top in adults 18-49 for a third straight week with a 1.3 rating/5 share in adults 18-49, followed by CBS and NBC (1.2/4), ABC (0.9/3) and Fox (0.8/3).

CBS edged past NBC to win in adults 25-54 (1.7 to 1.6) while the Eye won comfortably in total viewers (5.8 million to 5.1 million for NBC).

The standout on broadcast last week was "Big Brother," whose Sunday telecast (2.5/8 in 18-49, 7.24 million viewers overall) set season highs -- and also matched the top demo score for any night last season. The Wednesday and Thursday editions both did 2.3 demo ratings, tying for third among all primetime shows for the week.

At NBC, "America's Got Talent" continued its sluggish late-summer performance in 18-49 (2.0/7 on Tuesday, 1.9/6 on Wednesday) but remains a powerhouse in total viewers -- and was actually up vs. the comparable nights a year ago.

Monday newbie "Running Wild with Bear Grylls" (1.1/4 in 18-49, 5.83 million viewers overall) came down from its high of the previous week but remains one of the top summer newcomers on any net. Meanwhile, the Peacock's new Thursday comedy "Welcome to Sweden" bounced up a couple of tenths from its prior outing (0.7 vs. 0.5).

ABC's singing competition "Rising Star" ended its modestly rated run with an uptick Sunday (1.0/3 in 18-49, 3.57 million viewers overall), and "Rookie Blue" (1.0/3 in 18-49, 5.31 million viewers overall) was on the rise Thursday as it closed its season. The cop drama matched its year-ago finale demo score while delivering its largest closing-night audience to date.

With "So You Think You Can Dance" hitting lows on Wednesday (0.9/3 in 18-49, 3.45 million viewers overall), Fox's only night with a pulse was Monday with "MasterChef" (2.0/7 in 18-49, 5.83 million viewers overall) and "Hotel Hell" (1.5/4 in 18-49, 3.99 million viewers overall), with both shows rising week to week.

At CW, "Whose Line Is It Anyway" remained hot leading off Monday (0.6/2 in 18-49, 1.66 million viewers overall), and then hit a summer high with its repeat episode behind it (0.7/2 in 18-49, 1.91 million viewers overall). It was followed by the 21st-cycle premiere of "America's Next Top Model" (0.4/1 in 18-49, 1.11 million viewers overall), which was down two tenths from its Friday 8 p.m. premiere of last summer -- though it faced much tougher reality competition this time.

On Wednesday, the net's "Penn & Teller: Fool Us" (0.5/2 in 18-49, 1.69 million viewers overall) held at the same solid demo number of its first three weeks.

TNT's "The Last Ship" (1.0/2 in 18-49, 4.38 million viewers overall) ended its strong first season steady in the demo and up in total viewers, finishing as cable's top new show of the summer in adults 25-54 and total viewers. "Rizzoli & Isles" (0.83 rating in 18-49, 5.21 million viewers overall) was No. 2 behind "Ship" last week in the demo while standing as the most-watched cable series overall for the frame.

At VH1, "Love and Hip Hop Atlanta" wrapped its season with strong numbers (2.1/7 in 18-49, 3.90 million viewers overall), down a bit from last year's finale but big enough for a No. 2 finish among all series on television for the week -- behind only CBS' "Big Brother" -- in 18-49.

At HBO, "True Blood" (2.1/6 in 18-49, 4.04 million viewers overall) didn't see a big finale bounce, but gained about 500,000 viewers week-to-week to end its run with a season high. And behind it, rookie "The Leftovers" drew its largest audience to date (1.85 million).

BBC America's season premiere of "Doctor Who," with the debut of Peter Capaldi as the 12th Doctor, set a network record with 2.2 million viewers and was cable's top show for the night in 18-49 (0.85 rating).

Discovery's "Fast N' Loud" kicked off its season well Monday (1.0/4 in 18-49, 2.34 million viewers overall), ruling as cable's No. 1 non-sports program of the night in key male demos.

New Starz drama "Outlander" is picking up steam, drawing a best-yet 1.003 million for its regular-timeslot telecast on Saturday and 1.7 million in total for the night. The show continues to skew more female than previous series on the premium cabler, with femmes comprising 62% of Saturday's audience.

WEEKLY NETWORK PRIMETIME AVERAGES
(Live plus same-day)

Adults 18-49 (rating/share)
UNI 1.3/5
CBS 1.2/4
NBC 1.2/4
ABC 0.9/3
Fox 0.8/3
MTV 0.7/3
ESPN 0.7/2
TBS 0.7/2
USA 0.6/2
TEL 0.5/2

Total Viewers
CBS 5.82 million
NBC 5.10 million
ABC 4.02 million
UNI 3.33 million
ESPN 2.59 million
Fox 2.55 million
Fox News 1.91 million
USA 1.89 million
TNT 1.81 million
Disney 1.79 million

WEEK'S TOP PRIMETIME PROGRAMS
(Live plus same-day)

Adults 18-49
1. MTV Video Music Awards (MTV), 4.2/15
2. Big Brother-Sunday (CBS), 2.5/8
3. Big Brother-Wednesday (CBS), 2.3/9
3. NFL Preseason-Monday: Cleveland-Washington (ESPN), 2.3/9
3. Big Brother-Thursday (CBS), 2.3/8
6. Love & Hip-Hop Atlanta (VH1), 2.1/7
6. NFL Preseason-Sunday: Cincinnati-Arizona (NBC), 2.1/6
6. True Blood (HBO)*, 2.1/6
9. America's Got Talent-Tuesday (NBC), 2.0/7
9. MasterChef (Fox), 2.0/7
11. America's Got Talent-Wednesday (NBC), 1.9/6
11. MTV Video Music Awards Pre-Show (MTV), 1.9/6
13. American Ninja Warrior (NBC), 1.8/6
14. The Big Bang Theory-r (CBS), 1.6/7
15. NFL Preseason-Friday: Oakland-Green Bay (CBS), 1.5/6
15. Under the Dome (CBS), 1.5/5
15. Hotel Hell (Fox), 1.5/4
18. Mom, Thursday-r (CBS), 1.4/5
19. Bachelor in Paradise (ABC), 1.3/4

Total Viewers (in millions)
1. America's Got Talent-Tuesday (NBC), 9.48
2. America's Got Talent-Wednesday (NBC), 9.43
3. NCIS-r (CBS), 9.11
4. 60 Minutes (CBS), 8.50
5. MTV Video Music Awards (MTV), 8.26
6. The Big Bang Theory-r (CBS), 7.45
7. Under the Dome (CBS), 7.30
8. Big Brother-Sunday (CBS), 7.24
9. NFL Preseason-Sunday: Cincinnati-Arizona (NBC), 6.98
10. NCIS: Los Angeles-r (CBS), 6.97
11. NFL Preseason-Monday: Cleveland-Washington (ESPN), 6.90
12. Big Brother-Wednesday (CBS), 6.64
13. Big Brother-Thursday (CBS), 6.60
14. Unforgettable (CBS), 6.39
15. MasterChef (Fox), 5.83
16. Mom, Thursday-r (CBS), 5.78
17. American Ninja Warrior (NBC), 5.74
18. America's Got Talent, Wednesday-r (NBC), 5.68
19. Extant (CBS), 5.57
20. NFL Preseason-Friday: Oakland-Green Bay (CBS), 5.46

Source: Nielsen (English-language programs only)
Each 18-49 ratings point represents roughly 1.3 million viewers

*not supported by advertising

© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC


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3 ways insurers can discourage sick from enrolling

Insurers can no longer reject customers with expensive medical conditions thanks to the health care overhaul, but there's still wiggle room for them to discourage the sickest and costliest patients from enrolling.

Insurance companies can exclude some well-known cancer hospitals or certain individual specialists who treat pricey conditions from the list of providers they cover under a plan. They can dissuade HIV patients from signing up for coverage by requiring heavy initial payments of the bill for their prescriptions. They also might simply wait for competitors to jump into a market first and take all the risky patients who were hungry for coverage.

Consumer advocates and industry insiders warn that insurers are using tactics like these to limit their coverage of the sick, which can make it difficult for the people who need insurance the most to find the right plan. Narrow provider networks, in particular, have become more common, especially in coverage sold on new public health insurance exchanges created by the overhaul.

"It's the same insurance companies that are up to the same strategies: Take in as much premium as possible and pay out as little as possible," said Jerry Flanagan, an attorney with the advocacy group Consumer Watchdog.

Insurers acknowledge that people may see changes in coverage, driven in part by how the overhaul affects insurance. But they say prudent business practices, not discrimination against the sick, are the key factors behind the trends that have raised concerns. They also point out that if customers find a plan they don't like, they generally have plenty of additional options to choose from both on and off the exchanges.

They also note that the overhaul takes several steps to discourage them from avoiding costly patients. The law prevents them from marketing or designing a plan that would discourage someone from applying based on their health. It also calls for insurers to chip into a pool that compensates competitors who wind up with a more expensive patient population. That lowers their incentive for discouraging the sick from enrolling.

"Health plans now guarantee coverage for individuals and families regardless of health status," said Clare Krusing, a spokeswoman for the trade association America's Health Insurance Plans, or AHIP.

There are three major ways insurers still might steer sick or expensive patients away from their coverage:

— FORM NARROW NETWORKS

Insurers can lower their chances for covering patients with expensive medical conditions like cancer and autism simply by limiting the number of doctors and hospitals in a coverage network. That would send those patients searching for coverage elsewhere because they don't want to pay expensive, out-of-network rates.

Narrow insurer networks might include only 30 percent or less of a market's hospitals, as opposed to 70 percent or more for a broader network, according to the consulting firm McKinsey & Co.

An Associated Press survey of the nation's top cancer centers this spring found that patients covered under the health care law could encounter barriers to access in many cases. For instance, MD Anderson Cancer Center said it is included in the networks of less than half of the plans sold on the Houston area's public insurance exchange.

Aside from excluding patients, narrow networks also can help insurers form a healthy customer base by lowering the cost of coverage. A narrow provider network gives insurers leverage to squeeze better rates out of doctors who want to be included in that network in order to get the insurer's business.

Better rates lead to lower premiums, and young and healthy people generally shop for insurance based on price.

"They're the ones that don't check the provider directory," said Bob Laszewski, a former insurance executive turned industry consultant.

Insurers say plans with narrow networks are among many coverage choices consumers can make when they shop for insurance, and they are not an attempt to dodge the sick.

Narrow provider networks help maximize value by grouping providers "who have a track record of delivering high-quality, cost-effective care," said Krusing, the AHIP spokeswoman.

She added that insurers who sell coverage on the overhaul's public insurance exchanges have to offer more than one plan. It would make little sense for them to steer patients away from one plan when that person could just choose another option from the same insurer with broader benefits.

The overhaul sets some standards for provider networks, and a Centers for Medicare and Medicaid Services spokesman said regulators plan to increase their review of these networks for 2015 to figure out whether they need to strengthen requirements.

— CAUSE PRESCRIPTION STICKER SHOCK

Some plans are requiring patients to initially pay 30 percent or more of the bill for drugs that can cost several thousand dollars a month. HIV drugs and multiple sclerosis medications are among them.

The overhaul caps the annual amounts patients are required to pay for these so-called out-of-pocket expenses. Still, some say the higher cost-sharing requirements can steer patients that need these medications away from enrolling.

"It's another way to send a message to sicker patients that says, 'If you're taking these medications, we'd rather not sell insurance to you," Flanagan said.

The AIDS Institute filed a complaint with U.S. Health and Human Services department earlier this summer against four Florida insurance companies over the issue.

Insurers say their plans follow HHS guidelines and cover all medically necessary HIV drugs. They also note that the price patients pay reflects, to some degree, what drugmakers charge for their medications.

Insurers also say customers have options if they find a prescription plan they dislike. In some markets, a customer may more than a dozen choices, some of which might offer better coverage or a lower-cost alternative for their prescriptions.

But AIDS Institute Deputy Executive Director Carl Schmid said he worries that patient choices will dissolve over time if the high prescription payments spread to other insurers in a market, and "the good plans will become the bad plans."

— ENTER MARKETS CAUTIOUSLY

Another way insurers might land a healthier population is by playing the waiting game.

The nation's largest health insurer, UnitedHealth Group Inc., will dive into the overhaul's public insurance exchanges with plans to sell 2015 individual coverage in 24 exchanges. That's up from only four in 2014.

These exchanges debuted last fall and offer shoppers a chance to compare and buy policies, often with help from an income-based tax credit.

UnitedHealth's delayed growth could be a savvy way to avoid some of the sickest patients who likely rushed to sign up for insurance in the initial year of the exchanges, said Laszewski, the industry consultant.

That could free UnitedHealth to enter markets and sign up healthier patients after other insurers, most likely nonprofits with deep community roots, have "taken the bullet" the first year, he said.

Health insurers are still figuring out plan options for 2015, so there are no signs yet that other insurers are following UnitedHealth's example.

UnitedHealth said it had always planned a measured approach. It needed a year to set up provider networks and see how the exchanges worked in their debut before deciding whether to plunge in deeper. Spokesman Tyler Mason said the insurer wasn't waiting for those competitors to sign up all the sick patients first.

"Philosophically, we've always said the marketplaces would evolve over time and that they would be good markets and that reform is needed," he said.

___

Associated Press writer Ricardo Alonso-Zaldivar contributed to this report from Washington, D.C.


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US indexes drift a day after record; Express gains

Stocks were mostly flat in midday trading Wednesday after wavering between small gains and losses through much of the morning. Investors had their eye on a batch of company earnings and the latest corporate deal news. Trading volume was light ahead of the Labor Day holiday weekend.

KEEPING SCORE: The S&P 500 fell a point to 1,998 as of 12:19 p.m. Eastern. It closed above 2,000 points for the first time the day before. The Dow Jones industrial average was little changed at 17,106. The Nasdaq composite dipped about one point to 4,569.

THE QUOTE: Trading volumes were "extraordinarily light," as many people in the financial sector traditionally take time off the last week of August, said Lawrence Creatura, portfolio manager at Federated Investors.

"Highs made on lower volumes should be viewed suspiciously," he said. "It will be important that next week, when everyone has returned to their desks, that these levels are maintained and confirmed."

SECTOR VIEW: Six of the 10 sectors in the S&P 500 index fell, led by financial stocks. Garmin declined most among companies in the S&P 500. The stock fell $2.12, or 3.7 percent, to $55.33.

ELEGANT RESULTS: Tiffany rose $1.14, or 1.1 percent, to $101.92 in morning trading. The jewelry company's latest quarterly earnings beat Wall Street's forecasts.

EARNINGS BEAT: Express reported lower income and sales in its fiscal second quarter, but the clothing retailer's results trumped financial analysts' expectations. Its shares surged $1.75, or 12 percent, to $16.34.

PRESCRIPTION TO BUY: U.S. medical device maker Medtronic bought privately held Italian company NGC Medical S.p.A. for $350 million. NGC manages cardiovascular suites, operating rooms and intensive care units for hospitals. Medtronic already held a 30 percent stake in the business. Medtronic slipped 9 cents to $63.43.

LACKLUSTER FORECAST: The Congressional Budget Office said Wednesday it predicts the U.S. economy will grow by just 1.5 percent this year. The forecast reflects the severe winter weather that hurt growth in the first-quarter.

OVERSEAS ACTION: In Europe, stocks and bonds have been rising since last week on hopes of more central bank stimulus, but that rally lost steam Wednesday. Germany's DAX slipped 0.2 percent and France's CAC-40 was little changed. Britain's FTSE 100 gained 0.7 percent.

BONDS AND COMMODITIES: Bond prices rose. The yield on the 10-year Treasury note fell to 2.37 percent. Benchmark U.S. crude fell 37 cents to $93.49 a barrel in New York. Gold fell $1.50 to $1,283.70 an ounce.

___

AP Business Writer Elaine Kurtenbach in Tokyo contributed to this report.


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GM to move Cadillac SRX production to Tenn.

SPRING HILL, Tenn. — General Motors is moving production of the next-generation Cadillac SRX crossover SUV from Mexico to a factory in Spring Hill, Tennessee.

The company also announced Wednesday that it will add production of some small gasoline engines to the Spring Hill complex.

The additions will bring more jobs to Spring Hill, but a spokesman wouldn't give specifics on how many would be added to the sprawling former Saturn facility about 40 miles south of Nashville.

All GM said in a statement is that the SRX and a yet-to-be identified second midsize vehicle would "create or retain" about 1,800 jobs, while a $185 million investment in the Spring Hill engine factory would keep 390 jobs.

The complex now employs just over 2,300 workers, including hourly and salaried employees and those who work for parts supply companies.

Last year GM announced plans to invest $350 million in the Tennessee assembly plant to build two future midsize vehicles. The plant already builds several small gasoline engines plus the Chevrolet Equinox midsize SUV.

GM also announced Wednesday that it would invest just under $50 million at its Bedford, Indiana, engine block casting plant, keeping 45 jobs.

The company was holding a news conference at the Spring Hill factory on Wednesday to formally make the announcements.

The Cadillac SRX now is built at a GM factory in Ramos Arizpe, Mexico. That plant also builds the Chevrolet Sonic subcompact car and Chevy Captiva small SUV.

The United Auto Workers union, which represents Spring Hill factory employees, touted Wednesday's news as an example of how the union and company can work together.

"Today's announcement is proof we can achieve great things when workers have a seat at the table and the chance to share their ideas," union Vice President Cindy Estrada said in a statement.

Republican politicians like U.S. Sen. Bob Corker and Gov. Bill Haslam have been vocal opponents of the UAW gaining representation at a Volkswagen factory in Chattanooga. Workers voted against the union earlier this year. But the UAW has said it expects VW to recognize the union without another vote when it gets enough workers to sign membership cards.

GM hasn't identified the other new vehicle to be built at Spring Hill. But the state of Tennessee said in a July 11 news release that a nearby company was expanding to make parts for new GMC and Cadillac vehicles at the Spring Hill factory.

The new GMC likely would be produced on the same underpinnings as the Cadillac SUV, which likely will be redesigned for the 2016 model year.

It's possible that Chevy Equinox production at Spring Hill could go away in favor of the two new vehicles. The Equinox and sister vehicle, the GMC Terrain, already are assembled at two Canadian factories.

Crossover SUVs are in one of the fastest-growing segments of the U.S. auto market, appealing to young people and downsizing baby boomers. Sales of the midsize crossovers are up 14 percent so far this year, according to Autodata Corp., while overall U.S. auto sales are up 5 percent.

Crossovers are built on car underpinnings so they maneuver like a car and get comparable gas mileage. Drivers like the visibility of the high seating position and versatile cargo space.

___

Krisher reported from Detroit.


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Time Warner Cable suffers nationwide Internet, video-on-demand outage

Time Warner Cable's broadband and video-on-demand services were knocked offline for at least an hour and a half Wednesday, with the cable company saying most services were restored by 6 a.m. Eastern.

TW Cable said the outage occurred at about 4:30 a.m. Eastern and occurred during routine network maintenance when "an issue with our Internet backbone created (a) disruption with our Internet and On Demand services," the company said in a statement. "As of 6 a.m. ET, services were largely restored as updates continue to bring all customers back online."

Comcast, the biggest U.S. cable operator, is in the process of acquiring Time Warner Cable, the country's No. 2 cable provider, pending regulatory reviews.

Critics of the proposed $45 billion deal say the combined entity will have outsize power in the broadband market with close to 40% share of U.S. connections.As of the end of June, Comcast had 21.3 million broadband subscribers, while TW Cable had nearly 12 million. Comcast is spinning off systems representing about 3.9 million subs to Charter as part of the Time Warner Cable deal.

As of 9 a.m. Eastern, "Time Warner Cable" was the No. 9 trending topic on Twitter across the U.S., after East Coasters began discussing -- and complaining about -- the service outages.

On Tuesday, the Federal Communications Commission said Time Warner Cable agreed to pay $1.1 million to settle an investigation by the commission that found the MSO did not report multiple network and service outages.

© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC


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Time Warner Cable says outages largely resolved

NEW YORK — Time Warner Cable said Wednesday that service was largely restored after a problem during routine maintenance caused a nationwide outage of its Internet service for hours.

The company said it is still investigating the cause of the problem, which occurred with its Internet backbone — the paths that local or regional networks connect to in order to carry data long distances.

The problem affected all of Time Warner Cable's markets and started at 4:30 a.m. Eastern, sparking widespread complaints on social networks. Service was largely restored by 6 a.m. The company is working to bring all customers back online.

Time Warner Cable, which is in the process of being bought by rival Comcast Corp. for $45 billion, has about 11.4 million high-speed data subscribers in 29 states. The Federal Communications Commission is reviewing the deal.

The New York State Department of Public Service will investigate the outage as part of its review of Comcast's proposed merger with New York-based Time Warner Cable, said New York Governor Andrew Cuomo in a Wednesday statement.

There are major outages of at least one telecom provider every year, although typically they aren't national, said Tim Farrar, an analyst at TMF Associates.

"AT&T had a major outage back in April, Comcast had one last October. Verizon Wireless had several national outages on its 4G network back in 2012," he said. "Usually it is related to bugs in new technology, and occasionally to routine maintenance where someone did something wrong."

Separately, on Tuesday, the FCC said Time Warner Cable would pay $1.1 million to resolve outage reporting violations. The FCC found that Time Warner Cable did not report disruptions in service to its networks to the FCC in a timely manner. In addition to the payment, the company is submitting a three-year plan to make sure it will comply with the reporting rules.

Time Warner Cable shares rose 64 cents to $147.23 during midday trading.


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West Africans get creative with Ebola awareness

ABIDJAN, Ivory Coast — A young man on camera names the person who's challenged him to dump the contents of a bucket over his head. But in a twist on the ice bucket challenge, this man is soon drenched in frothy, soapy water — part of a campaign to raise awareness about Ebola prevention in West Africa.

Ivory Coast's "Lather Against Ebola" campaign, catchy songs and comedy are being used by West Africans to educate people on how to avoid getting the deadly disease, which has infected more than 2,600 people and killed more than 1,400 in four countries across the region, according to the World Health Organization.

From Nigeria to Sierra Leone, songs and sketches have supplemented traditional media and government campaigns to educate the public about Ebola, which is spread through contact with the bodily fluids of infected people and can be partly contained by simple measures like regular hand-washing.

The "Lather Against Ebola" campaign was inspired by the ice bucket challenge that has generated tens of millions of dollars for the ALS Association, which raises money for Lou Gehrig's disease research.

Ivorian blogger Edith Brou knew the ice bucket campaign was getting lots of attention and wanted to make it more relevant in her home country. Despite bordering Guinea and Liberia, two countries that have been hit hard by the Ebola outbreak, Ivory Coast has yet to record a single case, and Brou wants to keep it that way.

"Our greatest threat right now is Ebola," she said.

Those who accept the "Lather Against Ebola" challenge — searchable on Twitter using its French name, #MousserContreEbola — are expected douse themselves with soapy water and hand out three bottles of hand sanitizer. Those who reject the soaking are expected to distribute nine. Since it launched on Aug. 18, dozens of participants have posted soap-soaking clips to social media.

"Ivorians take the drama out of everything through humor," said Brou. "But in spite of the funny aspect of it, the message is forwarded on and listened to."

Liberian rappers Shadow and D-12 recorded several Ebola-related tunes. Their hit song, "Ebola in Town," was intended to counter early skepticism of the threat posed by the disease, which has infected more than 1,000 people in Liberia and killed at least 624. The disease has also his Guinea, Sierra Leone and Nigeria.

"No touching! No eating something!" the rappers warn listeners, playing up the disease's dangers. What the song lacks in specificity it more than makes up in catchiness.

Earlier this month, Liberian soccer star and former presidential candidate George Weah added his own song, "Ebola is Real," to the line-up. In Sierra Leone, rapper Special C's song "Ebola Does Not Discriminate" and music video portray the dangers of hiding sick patients, a practice Sierra Leone's parliament outlawed last week because of its potential to spread the disease.

And in Ivory Coast, the video for Israel Yoroba's new reggae-inspired song "Stop Ebola" enlists children, market women and a coconut seller to get out the simple message, while the singer dances in the streets of downtown Abidjan.

In Guinea, the government recently decided to back a group of comedians and artists to stage traveling shows.

Local filmmaker Aziz Balde said this is the best way to educate ordinary Guineans: "In a country where two-thirds of the population is illiterate, we the artists are the mouths of the people."

___

Associated Press writer Boubacar Diallo in Conakry, Guinea contributed to this report.


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SEC adopts rules on loan-backed securities

WASHINGTON — Financial firms that sell securities backed by loans, like the kind that fueled the 2008 financial crisis, will have to give investors details on borrowers' credit record and income under action taken Wednesday by federal regulators.

The Securities and Exchange Commission adopted the rules for securities linked to mortgages and auto loans on a 5-0 vote.

The commissioners also imposed new conflict-of-interest rules on the agencies that rate the debt of companies, governments and issues of securities. That vote split 3-2 along party lines, with the two Republican commissioners opposing adoption of the rules.

Home mortgages bundled into securities and sold on Wall Street soured after the housing bubble burst in 2007, losing billions in value. The vast sales of risky securities ignited the crisis that plunged the economy into the deepest recession since the Great Depression and brought a taxpayer bailout of banks.

In requiring sellers of the securities to provide information on borrowers' credit and income, the aim is to enable investors to better assess the risks of the loans underlying the securities.

"These reforms will make a real difference to investors and to our financial markets," SEC Chair Mary Jo White said before the vote.

A recent report by the Federal Reserve Bank of New York showed that U.S. auto loans jumped to the highest level in eight years this spring, fueled by a big increase in lending to risky borrowers. The Fed also said that loans to borrowers with weak credit, known as subprime loans, continue to make up a smaller proportion of total auto loans than before the recession.

Still, the rapid increase in subprime auto lending has raised concerns among federal regulators in recent months that it could set off a wave of defaults such as occurred in the mortgage market collapse. Because auto loans are packaged into securities, an increase in auto loan defaults could be amplified.

The new rules on so-called asset-backed securities and credit rating agencies were called for under the sweeping financial overhaul law enacted in 2010 in response to the financial meltdown. The rules take effect in 60 days.

A number of big banks, including JPMorgan Chase, Bank of America, Citigroup and Goldman Sachs, have been accused by the government of abuses in sales of mortgage securities in the years leading up to the crisis. Together, they have paid hundreds of millions in penalties to settle civil charges brought by the SEC, which accused them of deceiving investors about the quality of the securities they sold.

In recent months, the Justice Department and state regulators have reached multibillion-dollar civil settlements over mortgage securities with JPMorgan, Bank of America and Citigroup.

The new rules require credit rating agencies to report to the SEC on their financial safeguards to ensure that their ratings are determined through a fair process. The agencies' sales people will be barred from participating in the ratings process. And agencies will have to review and potentially revise their ratings in cases where an employee was later hired by a company he or she rated.

The rating agencies are key financial gatekeepers. Their ratings can affect a company's ability to raise or borrow money and also can influence how much investors pay for securities. Critics say the agencies have a built-in conflict of interest because they are paid by the same companies they rate. The three big agencies — Moody's, Standard & Poor's and Fitch — were widely criticized for giving low-risk ratings to the risky mortgage securities being sold ahead of the crisis, as they reaped lucrative fees. Investigations by a Senate panel and a congressionally appointed independent commission found that the three agencies contributed to the crisis by awarding high ratings to securities based on subprime mortgages.

The three big agencies together account for nearly 95 percent of the ratings market. Several other smaller rating agencies are officially recognized by the SEC.

A key problem is that companies choose which firms rate them and then pay for those ratings, critics say. It's like having a pitcher choose the umpire for a baseball game, they contend, and it puts pressure on the agencies to award better ratings in order to secure repeat business.

Critics say a better solution would be to create a government board that randomly assigns agencies to rate companies. Congress debated that idea, but ultimately decided not to direct regulators to adopt such rules. Instead, lawmakers asked the SEC to study the idea.


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