The suspect flashed a red and blue light to signal a sheriff's detective to the side of the road. He was promptly arrested.
An internal probe of how General Motors handled an ignition switch defect has found "a pattern of incompetence and neglect" at GM. On Thursday, CEO Mary Barra announced the dismissal of 15 employees, many of whom were executives and senior managers.
In Sgt. Bowe Bergdahl's hometown, a celebration had been planned for his homecoming. Now, facing new questions and controversy, the town of Hailey, Idaho, has cancelled that celebration. Jeff Gunter, chief of the Hailey Police Department, explains the decision.
Reports say that a merger between Sprint and T-Mobile is at hand. Sprint has made no secret of its designs on its smaller rival; why are the companies considering a deal now?
President Obama and other G-7 leaders are meeting in Brussels for a summit that is expected to be dominated by developments in Ukraine and Russia.
A London judge has been summarizing the findings of a phone-hacking trial that has touched the highest levels of British politics and journalism. The case is expected to go to the jury very soon.
One year ago Thursday, Edward Snowden leaked National Security Agency documents revealing details of its surveillance program. The Obama administration still considers Snowden a fugitive from justice and wants him to return to the U.S.
The NSA scandal has hurt some companies, but there are also some tech winners, including an American who has been cashing in on the political hype. Mike Janke's firm sells privacy devices and apps.
Sens. Bernie Sanders and John McCain announced the accord, which comes a week after Veterans Affairs Secretary Eric Shinseki resigned in the wake of the scandal over veterans' health care.
From the Marketplace Datebook, here's a look at what's coming up Friday, June 6:
It's the first Friday of the month which means all eyes will be on the May jobs report.
The Federal Reserve is scheduled to issue consumer credit data for April.
On June 6, 1998, HBO's "Sex and the City" premiered. It ran for six seasons and fortunately remains in syndication.
And the Great Wisconsin Cheese Festival gets underway in Little Chute. That's right, people: cheese and doughnuts.
General Motors CEO Mary Barra has responded to the auto recalls by firing 15 employees. She also ordered a compensation plan for the victims of the deadly auto defects.
After a report from an internal investigation was released, Barra said the company has some culture issues.
"Mary Barra has made this point that General Motors used to be a cost-focused culture, and now it’s becoming more customer-focused," says Micki Maynard, Director of the Reynolds Center for Business Journalism at the Cronkite School at Arizona State. "But if you read the report, things were going on in 2012 and 2013. It’s not like all of this was ten or fifteen years ago, this is very recent stuff. So I think there’s going to be a lot of work to do."
So if GM culture hasn’t improved in the last few years, what will it take for it to change?
"Maybe nothing can change it," says Maynard. "It might be that General Motors is the way it is, and you have to manage around that. In a good financial situation, you do just fine. But when things go bad, you end up in bankruptcy and need a bailout."
In Britain, government subsidies for the arts have traditionally been focused on ballet, opera and theater. But now, they are giving a boost to a rather less exalted area of creativity: thrash metal bands, acid punk and nu-grunge groups.
The aim is to promote British musical talent abroad by subsidising the cost of mounting a foreign tour. The grants – which have so far totaled more than three quarters of a million dollars – have caused outrage in conservative circles and have stirred criticism from low-tax campaigners.
But the recipients have defended the subsidy.
"As a band trying to break through, the cost of touring abroad can be prohibitive," argues Dave Silver, lead singer of the heavy metal band Savage Messiah. The band is getting $25,000 of public money.
Is this sex, drugs, and rock'n'roll at the taxpayers’ expense?
“Absolutely not !” says Silver “ There are strict controls on how you can spend the money. It can only be used for things like marketing costs, tour support, venue costs, international travel and so on.”
The taxpayer will not be footing the bill for: tattoos, studs, chin spikes or other body piercing… let alone picking up the tab for wrecked hotel rooms and wild parties. Not that Silver indulges in such excesses.
“I don’t actually drink alcohol at all. I don’t smoke. I don’t take drugs. So yeah, we’re pretty well behaved, really," he says.
The bands say they need state aid because they’re losing money from illegal downloads. And the only way to make a decent living is to break through into the live touring circuit.
The government clearly believes that it’s worthwhile offering a helping hand to up and coming talent and supporting the smaller, independent record labels.
Music is an important export for Britain. The British Recorded Music Industry – a trade body – claims that one in ten of all the albums sold in the United States are by British artists; the figure for continental Europe is one in four.
None of this cuts any ice with the Taxpayers’ Alliance, a group that campaigns for lower taxes. Political director Dia Chakravarty claims that the touring subsidy is wasteful and unnecessary.
“British bands have a long history of breaking overseas markets but that’s because they had great songs to sing, not because of taxpayers’ subsidies,” she argues.
Chakravarty takes a keen personal interest in the music industry.
“I’ve actually just finished working on my first album of Bangladeshi songs but I’ve supported that by having a day job….working at the Taxpayers’ Alliance,” she says. “I’ve not taken a single penny from taxpayers.”
Oddly enough, her argument against subsidy strikes a chord with Dave Silver. The lead singer of Savage Messiah divides his time between headbanging and studying economics and he’s a real fan of the Austrian School of Economics which favors the free market. So why accept the government grant?
“We’re a band. We’re four people in the band and not everyone in the band is of the Austrian School, so what can we do?" saysSilver. And he laughs: “ Yeah in an ideal world privatize everything that moves and have no state intervention in the economy. But that’s not where we’re at now. We've got to break into overseas touring.”
Getting pregnant again within a year of giving birth boosts the chance that the second baby will be born prematurely, a study finds. The risk was especially high for black women.
In a 78-17 bipartisan vote, lawmakers approved Sylvia Mathews Burwell to replace outgoing HHS Secretary Kathleen Sebelius.
Moscow is pouring in billions in an effort to make Crimea a showcase of development. But Crimea has a deeply entrenched reputation for organized crime, which already taints some of its new leaders.
After hundreds of children's bodies were found at an old church-run facility, a group of government officials met to discuss possible investigations into former homes for unwed mothers.
A U-haul truck is parked in front of a home in Bridgeport, Connecticut.
The Tampa area has more underwater mortgages than anywhere else in America: roughly 30 percent. But even there, things are getting better fast. That’s down from nearly 41 percent this time last year, according to CoreLogic.
“We’re seeing fewer people who are underwater. Prices have come back up,” says Brad Monroe, director of the Greater Tampa Association of Realtors.
Homeowners are telling his members they’re finally out from under their mortgages and ready to move. “Calling them back and saying, 'It’s time now. Prices are there and we can do it,'” he says.
Data from CoreLogic show that nationally, about 12 percent of homeowners owe more than their homes are worth. That’s a big drop from the first quarter last year when the number was around 20 percent.
“Which is really good news for the housing market,” says Mark Fleming, CoreLogic’s chief economist.
“So many homeowners didn’t have equity or were under equity and didn’t participate in listing their homes for sale. And that’s why house prices increased over the last year or two so dramatically in those markets,” Fleming says.
This is a virtuous cycle. Rising home values brought back equity to a lot of homeowners. That means more people can move if they want to. And, more homes on the market keeps prices from rising too fast.
But just because people are no longer underwater in their mortgages doesn’t mean they can move right away. They need enough equity to pay for the expense of selling one home and a down payment on a new one.
“Paying broker’s fees, for example,” says Kostya Gradushy, project manager at Black Knight Financial Services. “And, if you only have 5 percent equity in your house, you’re not going to be able to cover those costs.”
Black Knight says one in five homeowners today doesn’t have enough equity in their current home to afford a new one.Marketplace for Thursday June 5, 2014by Dan BobkoffPodcast Title Fewer homeowners drowning in mortgage debtStory Type News StorySyndication SlackerSoundcloudStitcherSwellPMPApp Respond No
Traders work under the index board that shows the DAX has broken the 10,000 mark for the first time ever at the Deutsche Boerse exchange on June 5, 2014 in Frankfurt, Germany. The rise comes after European Central Bank President Mario Draghi announced record low interest rates.
Remember when bottled water first came out? I remember thinking, "Who would actually ever pay for water?" I also remember balking at a 75 cents ATM fee years ago.
I imagine that's exactly how European banks are feeling right about now. The European Central Bank's new policy of negative interest rates is, essentially, charging banks for something that it used to pay banks for.
"Negative interest rates. What that means is that they are now charging commercial banks for leaving money at the central bank," says Beth Ann Bovino, U.S. chief economist at Standard and Poor's.
You know how banks usually pay you for storing your money with them? Now the ECB is actually charging European banks for the privilege.
So... how does this help the European economy?
"The ECB... is trying to create a hot seat," says Paul Kedrosky, a partner at SK Ventures. "They just want to make it so darn uncomfortable to continue sitting there with your deposits, that you say, 'Oh, screw it! I’ll lend it out.'"
Lending is exactly what European banks haven’t been doing. They’ve been playing it safe and stashing their money at the ECB. Businesses and individuals aren’t getting loans, so they aren’t hiring or buying and Europe’s economy is grinding to a halt.
"The Central Bank, their business is to get the real economy going," says Bovino. To do that, The ECB is making it expensive for banks to save. "Hopefully that means more lending to households and businesses."
So… will it work?
"Many banks in Europe are still fragile and recovering from the trauma of the world financial crisis," says Matthew Slaughter, a professor at Dartmouth’s Tuck School of Business. "How much more likely they will be to make a lot more loans is an open question."
Slaughter says banks might just put their money in another safe haven, like U.S. Treasury Bonds. That would be good for the U.S., but wouldn’t help Europe much.
The ECB can only make the seat hot, now it’s up to the banks to decide where to move their assets.
And maybe Marketplace will convince me to pay them one of these days...Marketplace for Thursday June 5, 2014by Stacey Vanek SmithPodcast Title What negative interest rates mean for the EurozoneStory Type News StorySyndication SlackerSoundcloudStitcherSwellPMPApp Respond No