National News

Amid Confusion, 17 Killed By Shelling At Market In Gaza

NPR News - Wed, 2014-07-30 13:50

Israel's army declared a humanitarian cease-fire on Wednesday but said it did not apply to all areas. A market that Palestinians had thought was safe was hit, killing 17 and wounding dozens more.

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Film directors want to give Kodak another artsy moment

Marketplace - American Public Media - Wed, 2014-07-30 13:45

Recent years have been tough for the Eastman Kodak Company. It emerged from bankruptcy in 2013 with a focus not on consumer products but on business consumers.

As film has gone digital, the company’s says its sales of motion picture film have declined by 96 percent over the last ten years.

But the company that gave us the “Kodak Moment” is getting some help from friends in Hollywood. Directors like Judd Apatow and Quentin Tarantino are pushing movie studios to commit to buying a certain amount of film from Kodak for the next several years.

The directors want to preserve the option to shoot film in the future, and Kodak CEO Jeff Clarke says in a statement that the company praises the “ingenuity in finding a way to extend the life of film.”

David Reibstein, a professor at The University of Pennsylvania’s Wharton School, says having that option in the long-term will depend on what Kodak does with these sales.

“If you’re just getting more money to continue to do what it is that you were going that wasn’t working, that’s not going to be a successful strategy,” he says.  Reibstein notes that when General Motors invested in saving its ailing but iconic Cadillac brand, it undertook a major redesign and targeted a new demographic of customers.

Propping up a product in the short term can be like a finger in the dike, says Ken Doctor, a media analyst for Newsonomics. He sees a parallel between Kodak’s deal and one pushed by former French President Nicolas Sarkozy to help ailing newspapers.

“He had the government fund one year subscriptions to… the students graduating from high school in France as a way to stem the tide,” he explains. “That was a short-lived program.”

But there is still value in Kodak’s brand, because now it has an "artisanal" quality to it, says Douglas Holt, president of the Cultural Strategy Group, a brand consultancy. He says Kodak used to be a symbol of mass culture; now the culture it recalls has become antiquated and cool.

“Pabst Blue Ribbon, Polaroid – a lot of these brands that were mass cultural brands of the [past decades], the '50s, '60s, '70s, have the same possibility to push back against the mass culture of today,” he says.

Editor's note: An earlier version of this story failed to say Kodak had emerged from bankruptcy. Further, the story lacked sufficient context concerning the agreement the company and movie studios are pursuing, and it failed to include a comment from Kodak. The text has been amended.

Drones have a new celebrity spokesperson

Marketplace - American Public Media - Wed, 2014-07-30 13:45

The Motion Picture Association of America is a big fan of drones — or, officially, "unmanned aerial systems." The organization asked the Federal Aviation Administration yesterday to make it easier for directors to use drones in filming.

Another big fan of drones? Martha Stewart.

Drones are trending.

— Martha Stewart (@MarthaStewart) July 30, 2014

She has written a piece for Time, called "Why I Love My Drone."

Someone gave her one last summer as a gift. And, we learn, her mind "started racing" as she "imagined all the different applications" for it.

Stewart and her staff have been taking drone pictures of her beach house in Maine and her farm in New York.

"An aerial shot of the vegetable garden looked very much like my Peter Rabbit marzipan embellished Easter cake," she writies. "Which was designed without the help of a drone."

How the McDonald's ruling impacts the franchise industry

Marketplace - American Public Media - Wed, 2014-07-30 13:45

The general counsel of the National Labor Relations Board (NLRB) has handed down a decision that could have implications for the millions of Americans who work for franchises.

After investigating claims that some McDonald's restaurants broke labor laws by firing or penalizing workers who took part in pro-labor activities, the NLRB's general counsel said if the owner of a McDonald's fast food franchise commits a labor violation, the McDonald's corporation can be held jointly liable for the franchisee's bad behavior.

For now, the decision affects only the McDonald's corporation and McDonald's franchises. There are 3,000 other brands with franchise operations in the U.S., employing 8.5 million people across a range of industries, according to the International Franchise Association (IFA).

The IFA's Matthew Haller says the decision could destroy the franchise industry. Franchises may bear the names of big companies, he said, but they are owned and run like small businesses. 

"They set the wages, they hire and fire the employees, determine the appropriate benefits for employees and are responsible for all decisions that take place at the employee level," Haller said. 

The NLRB's general counsel said the McDonald's Corporation exercises enough control over how franchises are run to make it a co-employer of the people who work for franchises.

"They do exercise quite a bit of control over their franchisees in order to protect their brand," said Wilma Liebman, a former chair of the NLRB who has been advising the SEIU, a union that is working to organize fast-food workers. 

What McDonald's Corp. controls and what it doesn't is laid out in the terms of its franchise agreement. So even though other franchisees in other industries are watching the decision closely, it's not yet clear how this will affect other companies. McDonald's said in a statement that it plans to contest the NLRB's decision.

Twitter is relying on the Underwear Gnomes Profit Plan

Marketplace - American Public Media - Wed, 2014-07-30 13:45

Twitter released its quarterly results and they were impressive — shares jumped nearly 20 percent today.

The social media giant says they have picked up 16 million users in the last few months, making a grand total of 267 million users on Twitter. On top of that, revenue more than doubled thanks to new types of mobile ads.

Of course, revenue and profit aren’t quite the same thing. Twitter is still losing money.

That might sound surprising, but it’s actually pretty typical for tech companies, which tend to have a business plan that strongly resembles the business model of the Underpants Gnomes from South Park.

South Park Underwear Gnomes Profit Plan (full) from Jane Lu on Vimeo.

"It’s actually a very good business model," says Erich Joachimsthaler, CEO of Vivaldi Partners.

OK, he’s actually not talking about the underpants gnomes, he’s talking about Twitter and other tech companies, which tend to follow a plan that looks something like this:

PHASE 1: Attract millions of users with free services.

PHASE 2: Figure out some way to exploit those users.

PHASE 3: Make millions of dollars.

We’ve seen this work time and again, says Joachimsthaler - think Google and Facebook.

"As habit forms and as millions of people become hooked, Twitter has an opportunity to add advertising [and] some e-commerce functions, basically monetizing the asset," Joachimsthaler says.

But that could be tricky for Twitter. Advertisers love Facebook because it knows so much about its users and there are so many of them, says Ken Wilbur, assistant professor of marketing at UC San Diego's Rady School of Management.

He says they don’t love Twitter quite as much.

"When you put ads into the Twitter feed itself, it lowers the utility of Twitter to its users," Wilbur says. "And they don’t have a great platform for putting ads next to the feed."

Wilbur says it remains to be seen whether Twitter can find a way to fully monetize its users. It could either be the next Facebook or the next Friendster. At one time, Friendster was the biggest social network on the web, with more than 100 million users and now it’s a gaming site based in Malaysia.

Ah, the pitfalls of phase two.

Moldova's Winemakers Seize Upon Region's Geopolitical Moment

NPR News - Wed, 2014-07-30 13:44

The tiny European country of Moldova isn't known for much of anything, and especially not its wine. But its winemakers are trying to find new export markets and overcome their post-Soviet reputation.

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Women, divorce, and long-term finances

Marketplace - American Public Media - Wed, 2014-07-30 13:28

At a divorce workshop called Second Saturday, women of all ages are packed around a large conference table. One of them is Jenny Juffs. She’s divorcing after 19 years of marriage and has two special needs children. Like many women, Juffs is pretty shocked by her new financial reality.

“I’ve been a wife or homemaker all my life," she says. "Everything’s changing for me. I’ve never managed money.”

This situation is particularly grim for older women. Today, a quarter of divorced women over 60 live in poverty. Overall, older women see their household income drop by 41 percent. That’s twice the amount of their ex-husbands. And, to make matters worse, baby boomers are splitting up at record rates.  

"So we are seeing these 20, 25, 30, 35-year marriages coming apart, with the women who have never worked outside of the home," says financial advisor Grace Antares. 

Antares heads Portland’s local chapter of Second Saturday. Many people who come to her divorce seminar are completely inexperienced when it comes financial planning. She often sees panic. Like one middle-aged woman who fled the room: “She explained to one of my colleagues that she was going through what felt like PTSD to her, that she had been separated from her husband for 10 years and had made every single mistake that we had mentioned in the first part of the class.”

So, financial literacy is important. But Antares says the biggest contributor to post-divorce success is earning power - and some women who spent more of their time focusing on the family lack job skills. 

As for Jenny Juffs, she's trying to build basic skills, like keyboarding. "I know how to use a computer a little bit, but not Office or Excel or anything that anybody’s going to need.”

Antares says even women who have good jobs can make poor financial decisions after divorce. And the closer to retirement these mistakes are made, the more devastating the effect. Grace Antares is now 64-years-old, and has her own story.

"I was highly emotionally attached to the house," she says. "I pulled out the equity to pay him, I was the bigger earner, paid him a big settlement. Then, when the real estate market crashed, the house was underwater instantly. And so he got all the tax-free cash, and I got a foreclosure and a bankruptcy.”

Antares' own experience is what helps fuel the one message she repeats all the time: “You’re going to be in charge of your finances for the rest of your life."

Gaza's Network Of Tunnels Is A Major Hole In Israel's Defenses

NPR News - Wed, 2014-07-30 13:14

Hamas militants are using tunnels in and out of Gaza to strike inside Israel. Israelis are questioning how the tunnels grew to be so complex and why the military hasn't been able to shut them down.

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Grocery Chain Workers Want Their CEO Back

NPR News - Wed, 2014-07-30 13:04

Arthur T. Demoulas, chief executive of the New England grocery chain Market Basket, was pushed out by his cousin in a boardroom struggle. Protesting employees have brought business to a standstill.

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Judge Orders Bank Of America To Pay $1.3 Billion Fine

NPR News - Wed, 2014-07-30 12:27

A jury had found the bank liable for fraud related to mortgages sold by its Countrywide Financial unit last October. Bank of America may appeal.

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Violence On The Ground Hobbles MH17 Investigations

NPR News - Wed, 2014-07-30 12:00

Nearly two weeks since a Malaysia Airlines flight was downed over eastern Ukraine, fighting in the region continues to delay the start of an investigation. For more, Audie Cornish speaks with Paul Sonne, the Moscow correspondent for the Wall Street Journal.

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For 2 Senators, Campus Sexual Assault Solution Starts In Washington

NPR News - Wed, 2014-07-30 12:00

To learn more about the new legislation aimed at sexual assault on campuses, Audie Cornish speaks with two of the bill's co-sponsors, Sen. Claire McCaskill and Sen. Kirsten Gillibrand.

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Senators Roll Out A Bill To Curb Sexual Assault On Campus

NPR News - Wed, 2014-07-30 12:00

A bipartisan group of senators has introduced new legislation aimed at combating sexual assault on American college campuses. If passed, the bill would force colleges to handle accusations more aggressively and provide advocates for victims.

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As Wildfires Burns Through Funds, Washington Seeks New Way To Pay

NPR News - Wed, 2014-07-30 12:00

Wildfires are ravaging thousands of square miles on the West Coast, though officials say that this wildfire season has been tamer than average. Still, responding to these fires has proven costly, and the Obama administration is reevaluating how it pays for fighting them.

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A Market And A School Come Under Fire During A Violent Day In Gaza

NPR News - Wed, 2014-07-30 12:00

An explosion rocked a crowded Gaza market during what was expected to be a lull in the fighting. Earlier in the day a United Nations school was hit by what U.N. officials say was Israeli artillery fire, killing at least 15 people. Meanwhile, rocket fire from Gaza continues to be fired into Israel.

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Senate Bill Would Fine Colleges For Mismanaging Campus Rape Cases

NPR News - Wed, 2014-07-30 12:00

A group of senators has introduced legislation aimed at combating sexual assault on college campuses. It would force schools to handle accusations more aggressively and provide advocates for victims.

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Senate Bill Would Fine Colleges For Mismanaging Campus Rape Cases

NPR News - Wed, 2014-07-30 12:00

A group of senators has introduced legislation aimed at combating sexual assault on college campuses. It would force schools to handle accusations more aggressively and provide advocates for victims.

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Lawsuit Opens A Long Round Of Political Pingpong

NPR News - Wed, 2014-07-30 12:00

Republicans in the House voted to allow Speaker John Boehner to sue President Obama. They believe the president has overstepped his constitutional authority.

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Lawsuit Opens A Long Round Of Political Pingpong

NPR News - Wed, 2014-07-30 12:00

Republicans in the House are holding a floor vote to allow Speaker Boehner to sue President Obama. They believe he's overstepped his constitutional authority; specifically, the resolution would authorize a federal lawsuit for Obama's handling of the Affordable Care Act.

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Late Rally From Argentina Fails To Delay Default

NPR News - Wed, 2014-07-30 12:00

Earlier in the day it looked like a resolution was possible, but ultimately talks between the country and a group of creditors broke down in New York. The first time the country defaulted was in 2002.

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