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January 27, 2012

Stricken ship passengers ponder compensation

Filed under: term, uk — Tags: , , , — Gladiator @ 12:56 am

Herbert Greszuk was at the bar on the fifth deck of the Costa Concordia when the ill-fated luxury liner hit a reef.

Unable to get back to his second-deck cabin after the emergency signal came, he made it to a lifeboat with only the clothes on his back _ leaving behind everything he had with him for the cruise, including his tuxedo, camera, jewelry, euro400 ($520) in cash, credit cards, identity papers and even his dentures.

The 62-year-old, who runs a small flower shop and cafe in the western German town of Recklinghausen, counts himself lucky to have escaped the ship after it capsized Jan. 13, leaving at least 16 dead and 16 still missing.

But, he estimates that he lost at least euro10,000 ($13,000) in goods alone. He’s only one of the 4,200 passengers and crew who were on board and will likely want compensation, and material loss just scratches the surface. There’s the ruined holiday, physical and mental trauma, and payments to families of the dead, among other things, in an incident many believe was preventable.

“It’s about accountability, ” Greszuk told The Associated Press in a telephone interview from his cafe. “Something like this must not be allowed to happen again. So many people died; it’s simply inexcusable.”

In Rome on Thursday, representatives of ship operator Costa Crociere SpA met with consumer activists to discuss a blanket compensation deal for some 3,206 people from 61 countries who suffered no physical harm when the ship hit the reef.

The offer would consider the price of the ticket, costs incurred in getting home after the disaster, the cost of items lost aboard the ship as well as damages for the ruined vacation and trauma resulting from the accident, said Furio Truzzi of the consumer group Assoutenti.

It would not apply to the hundreds of crew on the ship, the roughly 100 cases of people injured or the families who lost loved ones.

“We are working for a collective transaction to come up with a value for damages,” Truzzi said. “Each passenger can decide if this proposal is satisfactory. If it is not, they are free to react through a lawyer.”

Truzzi said it was premature to discuss exact amounts of compensation. He said it would be an average and that any passenger who deemed his or her losses greater than the offer was free to counter the proposal.

He said Assoutenti would work separately on a proposal for those who lost loved ones in the disaster and was open to working with crew members.

The ship ran aground off the Tuscan island of Giglio after the captain, Francesco Schettino, veered from his approved course. Costa Crociere’s chief executive, Pier Luigi Foschi, has said Schettino didn’t have approval to change the course and was going too fast _ 16 knots _ to be so close to shore.

Schettino is under house arrest, facing accusations of manslaughter, causing a shipwreck and abandoning a ship before all passengers were evacuated.

Although it is still early and talk of compensation is ongoing, lawsuits are expected to be filed in Germany, Italy, the United States and elsewhere. In France, the Justice Ministry said that complaints filed by French people have been brought together by the Paris prosecutors’ office. It said 462 French passengers were aboard _ four were killed and two remain missing.

Attorney Hans Reinhardt, who represents Greszuk and a dozen other German survivors, said passengers did sign liability wavers _ a common requirement for cruises _ but that he considers them void under the circumstances quick payday loans.

“You do not sign off on a disaster situation, what you sign there is for normal daily situations like if there is a little storm or high water or something like that,” he said. “This was such a large failure by the captain and by Costa that you can sign whatever you want but you will still get your money.”

Depending upon their individual situations, he said he is seeking between euro10,000 ($13,000) and euro50,000 ($65,700) for his clients and would wait for three months to see if Costa would settle before taking the matter to court.

Though the cruise company is Italian, Costa’s parent company is Miami-based Carnival Corp. and Reinhardt said he was trying to determine which could be held responsible for the incident. If it’s Carnival, he said he would pursue his case in the U.S., where damages awarded tend to be higher than in Germany.

The company also faces the question of compensation for crew members who have lost their jobs because of the accident, not to mention the costs of salvaging the ship and of a possible environmental disaster if the unused fuel cannot be safely removed.

Salvage experts worked Thursday so they could begin pumping tons of fuel off the ship starting Saturday to avert an environmental catastrophe. The stricken ship lies in pristine waters that are prime fishing grounds and part of a protected area for dolphins and whales.

German reinsurers Hannover Re AG and Munich Re AG, two of the world’s largest, both said this week that liability claims from the fatal capsizing could run in the triple-digit millions of euros. Swiss Re, the other reinsurance powerhouse, said Thursday it was still too early to even guess what it might cost.

Reinsurers offer backup policies to companies writing primary insurance policies, which helps spread the risk around so the system can handle large losses from disasters.

Carnival has said it has liability insurance, though with a $10 million deductible. Of the so-called “hull insurance,” which covers damage to the ship, Carnival is responsible for the first $30 million in damage, while the rest is covered by a network of insurers led by XL Group.

Carnival also said it expects to lose $85 million to $95 million in bookings on the ship that have had to be canceled.

Meantime, Greszuk said he has been trying to piece together his life _ getting a new driver’s license, credit cards, passport and other identity documents _ but is feeling abandoned by those responsible for his plight.

“I feel so lost and alone,” he said. “Nobody is helping us out. Neither Costa nor the travel agency have contacted me _ do you know how that feels? I called the travel agency and they said it’s not our problem any more, call Costa. I called Costa and they said they’d get back to me, but as of today, I haven’t heard a word.”

______

Colleen Barry reported from Milan, Italy. Associated Press writer Jamey Keaten in Paris contributed to this report.

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January 25, 2012

Asia stocks rise as Apple result lifts tech shares

Filed under: marketing, online — Tags: , , , — Gladiator @ 10:00 am

Asian stocks rose Wednesday as investors stayed calm in the face of a possible debt default by Greece to search for good deals in technology shares boosted by stunning results from Apple Inc.

Japan’s Nikkei 225 index rose 1 percent to 8,870.22. South Korea’s Kospi gained 0.8 percent at 1,964.72 and Australia’s S&P ASX 200 added 1 percent to 4,268.70. Benchmarks in Singapore and New Zealand rose, while shares in the Philippines fell.

Markets in Hong Kong, mainland China and Taiwan remained closed for Chinese New Year.

Japan’s powerhouse export sector got a lift from a moderation in the yen’s strength even as the country reported its first annual trade deficit since 1980. A strong yen, which hit multiple historic highs last year against the dollar, shrinks the value of overseas earnings when repatriated and makes Japanese products less competitive.

Honda Motor Corp. rose 3.3 percent. Mitsubishi Motor Corp. jumped 4.4 percent and Sony Corp. added 3.1 percent. Tire-maker Bridgestone Corp. added 3.4 percent.

Technology stocks were elevated after Apple Inc. reported earnings that sailed past analyst estimates. Apple said late Tuesday said it sold 37 million iPhones in the last three months of 2011, vastly exceeding estimates and propelling the company to record quarterly results.

That stellar performance reverberated throughout the global tech industry. South Korea’s LG Electronics Inc business card., which ranks No. 2 globally in flat screen televisions, jumped 4.1 percent. Hynix Semiconductor Inc., the world’s second-largest memory chip maker, added 2.2 percent.

Stan Shamu of IG Markets in Melbourne said in an email that the gains in Asia suggested “investors are now starting to pay less attention” to Greece, which is struggling to reach a deal with creditors to prevent a chaotic default on its massive debts. A default could trigger a financial crisis in Europe and likely beyond.

Greece is trying to get its creditors to swap Greek government bonds for new ones that have half the face value. Greece faces an important bond repayment deadline in March.

The Dow Jones industrial average closed down 33 points at 12,676 on Tuesday. The Standard & Poor’s 500 lost a point to close at 1,315. The Nasdaq added two points to close at 2,787.

Benchmark oil for March delivery rose 35 cents to $99.26 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 63 cents to end at $98.95 per barrel on the Nymex on Tuesday.

In currency trading, the euro rose to $1.3026 from $1.3021 late Tuesday in New York. The dollar rose to 77.91 yen from 77.73 yen.

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January 23, 2012

Spain Risks Deficit Spiral as Election Postpones Budget Cuts: Euro Credit - Bloomberg

Filed under: money, mortgage — Tags: , , , — Gladiator @ 7:04 pm

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January 22, 2012

Italy: Divers find woman’s body in stricken ship

Filed under: business, marketing — Tags: , , , — Gladiator @ 4:08 am

Italian Coast Guard divers have found a woman’s body in a corridor of a submerged section of the capsized Costa Concordia, raising to at least 12 the number of dead in the cruise liner accident.

Coast Guard Cmdr. Cosimo Nicastro told The Associated Press that the body, wearing a life jacket, was found in a narrow corridor near an evacuation staging point at the ship’s rear Saturday.

The body was brought to Giglio, the Tuscan island where the cruise liner hit a reef and ran aground on Jan. 14. Twenty people are missing.

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

ROME (AP) _ Italian Coast Guard divers have found a woman’s body in a corridor of a submerged section of the capsized Costa Concordia, raising to at least 12 the number of dead in the cruise liner accident.

Coast Guard Cmdr. Cosimo Nicastro told The Associated Press that the body, wearing a life jacket, was found in a narrow corridor near an evacuation staging point at the ship’s rear.

The body was brought to Giglio, the Tuscan island where the cruise liner hit a reef and ran aground on Jan. 14. Twenty persons are missing.

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January 20, 2012

Bonds Show Return of Crisis Once ECB Loans Expire: Euro Credit - Bloomberg

Filed under: Audit, online — Tags: , , , — Gladiator @ 1:12 pm

European Central Bank President Mario Draghi

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January 18, 2012

Keystone pipeline: U.S. government set to reject proposal

Filed under: uk, usa — Tags: , , , — Gladiator @ 10:16 pm

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January 17, 2012

Greek Debt Swap Faces

Filed under: Audit, news — Tags: , , , — Gladiator @ 7:20 am

The Greek government and its creditors return to the negotiating table this week to revive stalled talks on a debt swap as German Chancellor Angela Merkel places pressure on both sides to forge a deal.

Greek Finance Minister Evangelos Venizelos said two days ago that talks with the Institute of International Finance will resume on Jan. 18. The Washington-based IIF, which represents banks holding the bonds, said on Jan. 14 there is a

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January 15, 2012

Italian officials say cruise ship missing now 17

Filed under: business, houses — Tags: , , , — Gladiator @ 4:24 pm

Italian officials have lowered the number of people still unaccounted-for in the grounding of a cruise ship off Tuscany.

Tuscany’s regional president Enrico Rossi said that there were now six crew members and 11 passengers who haven’t been located out of the 4,200-plus people who were aboard the Costa Concordia when it struck a reef and capsized Friday night.

Three people have been confirmed killed and three people were rescued more than 24 hours after the disaster: a South Korean honeymooning couple and an Italian member of the ship’s crew, who was hoisted to safety Sunday afternoon by helicopter.

The Concordia’s commander has been detained on accusations of manslaughter and abandoning the ship. He has said the reef wasn’t marked.

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

GIGLIO, Italy (AP) _ An Italian prosecutor has confirmed allegations from passengers and others that the captain of the cruise ship Costa Concordia abandoned the stricken liner before all the passengers had left.

Three people are confirmed dead after the huge cruise ship carrying more than 4,200 people ran aground on Friday night.

Asked Sunday by Sky Italia TV about allegations that the captain had left the ship before the last passenger had been rescued, Grosseto prosecutor Francesco Verusio replied, “Unfortunately I must confirm that circumstance.”

The captain, Francesco Schettino, was detained for questioning for suspected manslaughter, abandoning ship before all others and causing a shipwreck.

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January 14, 2012

S&P downgrades France, Italy, others 1 notch

Filed under: economics, usa — Tags: , , , — Gladiator @ 1:28 am

Ratings agency Standard & Poor’s has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany’s at the coveted ‘AAA’ level.

The cuts, which eliminated France and Austria’s triple-A status, deal a heavy blow to the currency union’s ability to fight off a worsening debt crisis.

Italy was lowered to BBB+ from A. Spain slipped to A from AA-.

The downgrades come as crucial talks on cutting Greece’s massive debt pile appeared close to collapse Friday.

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

PARIS (AP) _ Ratings agency Standard & Poor’s has downgraded the government debt of France, Austria, Italy and Spain by one notch, but maintained Germany’s at the coveted ‘AAA’ level.

The cuts, which eliminated France and Austria’s triple-A status, deal a heavy blow to the currency union’s ability to fight off a worsening debt crisis.

Italy was lowered to BBB+ from A. Spain slipped to A from AA-.

The downgrades come as crucial talks on cutting Greece’s massive debt pile appeared close to collapse Friday.

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January 12, 2012

Supervalu losses widen in quarter

Filed under: economics, money — Tags: , , , — Gladiator @ 10:32 am

Grocery operator Supervalu Inc. said Wednesday that its fiscal third-quarter net loss widened due to costs related to a turnaround plan, continued high food prices and a cautious consumer.

The company, which operates Kirkwood-based Shop ‘n Save, Earth City-based Save-A-Lot and others, trimmed its yearly sales guidance for the second quarter in a row.

Supervalu, like most grocers, is trying to raise prices to offset high food costs without alienating shoppers that have cut spending due to worry over the economy and high unemployment. Supervalu is also facing costs related to a restructuring plan, begun well over a year ago, which has involved closing stores, selling off some businesses, lowering debt and tailoring its stores to meet local needs payday loan lenders.

Still, the company lowered its yearly sales guidance to $36.1 billion from prior guidance of $36.5 billion. Analysts expect revenue of $36.44 billion, according to Fact Set. It reaffirmed adjusted profit guidance of $1.20 to $1.30 per share. Analysts expect $1.24 per share.

For the quarter, Eden Prairie, Minn.-based Supervalu lost $750 million, or $3.54 per share, compared with a loss of $202 million, or 95 cents, last year.

Revenue fell 4 percent to $8.33 billion.

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