Archive for January, 2007

Pain, Fury Still Rage a Year After Katrina

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Pain, Fury Still Rage a Year After Katrina ABC News Poll Finds Loss, Frustration and Anger Linger in Katrina’s Path Analysis By JON COHEN, DALIA SUSSMAN and GARY LANGER

Aug. 27, 2006 - A year after it hammered the Gulf Coast, Hurricane Katrina’s devastation persists in the ongoing loss, frustration and anger of those hardest hit by the storm, with widespread views of waste and mismanagement in the recovery effort, significant personal stress and broad fears of what another hurricane could do.

Across the 91 counties in Louisiana, Mississippi and Alabama designated as Katrina disaster areas, 57 percent of residents say most of the approximately $44 billion the federal government has spent on hurricane recovery in the last year has been wasted — and that rises to 66 percent in New Orleans, an ABC News poll finds.

Other assessments of the government’s relief efforts are as bad or worse. More than eight in 10 in New Orleans, and six in 10 across the Gulf Coast, are frustrated with the process; nearly two-thirds in New Orleans, and nearly half across the region, are angry about it. Seventy percent in New Orleans lack confidence in the government’s ability to handle another major disaster. And most blacks in the region and across the country think race has affected recovery efforts.

Rating the Federal Government
National Gulf New Orleans
Rate the government’s recovery efforts negatively 66% 59% 84%
Recovery money mostly wasted 60 57 66

All told, 84 percent in New Orleans, and nearly six in 10 in the Gulf Coast more broadly, give negative ratings to the way the government has dealt with Katrina recovery. And many residents (six in 10 in New Orleans, and four in 10 across the disaster counties) say the experience has weakened their overall trust in government to help people in need.

Where government has struggled, though, neighbors and strangers have pulled together. Both in New Orleans and across the region, about two-thirds say the hurricane and its aftermath strengthened their trust in their fellow man — if not in their government — to lend a hand.

Personal Losses

Still, personal losses — material and psychological alike — are lasting. Nearly three-quarters of New Orleans residents say they have not yet personally recovered from Katrina, six in 10 report long-term damage to their emotional well-being and about as many say the possibility of another hurricane is creating stress and anxiety in their lives.

Such reactions are less widely held, but still prevalent, among the 5.5 million residents of all 91 disaster counties (areas designated by FEMA as eligible for individual assistance aid from the federal government). Four in 10 report long-term emotional damage, as many are stressed about the possibility of another storm and one in three say they have not yet personally recovered from Katrina.

Long-Term Negative Impact of Katrina
Gulf New Orleans
Personal finances 46% 62%
Emotional well-being 40 61
Personal health 19 40

Four in 10 in New Orleans also report long-term damage to their personal health as a result of the hurricane; about two in 10 across the region say the same, a major public health impact. Six in 10 in New Orleans and nearly half across the regional report long-term damage to their personal finances; one factor is that six in 10 suffered property losses for which they were not fully insured.

More than one in 10 regionally, and more than one in three in New Orleans, had a close friend or family member killed as a result of the storm. (The official death toll in Louisiana is 1,464.)

Katrina’s physical devastation comes clear in other numbers: Eighty percent in the region, and nearly 90 percent in New Orleans, say their area was damaged by the storm. A year later, moreover, just half of residents across the disaster counties whose area was damaged say it’s fully recovered, and in New Orleans a scant 17 percent say so.

Among current New Orleans residents — the city was severely depopulated — 85 percent say their primary residence was damaged by the hurricane and two-thirds suffered other property damage. More than half say the damage to their area was severe; more than half also report a severe impact on their personal lives. Across the region, people who report severe damage in their area are more apt to report slow progress toward recovery and negative personal impacts.

At the same time, there is hopefulness: Among people whose area has not yet fully recovered, majorities think it’ll get there eventually. Similarly, among those who have not yet fully recovered personally, two-thirds think that eventually they will.

Hurricane Damage
Gulf New Orleans
Area damaged 80% 89%
Damaged severely 27 54
If damaged, area fully recovered 51 17
If not recovered, eventually will 72 60

Nonetheless, a quarter of New Orleans residents don’t think their area will ever fully recover. And two in 10 doubt they’ll personally ever recover completely.

The poll, including random-sample interviews in the Katrina disaster counties, New Orleans and nationally, supports ABC News’ division-wide special programming, “Katrina: Where Things Stand,” airing over the next week. Katrina made landfall Aug. 29, 2005, with sustained winds of 125-mph and a storm surge that breached the levees of New Orleans.

Government Response

Weak ratings of government recovery efforts in the affected areas is reflected in national views as well. Among all Americans, 60 percent think most of the money spent on hurricane recovery has been wasted, two-thirds rate the government’s efforts negatively and half lack confidence in the government’s ability to respond effectively to another major disaster.

Criticism is not limited to the federal government. Nationally, more than six in 10 rate the local and state governments negatively. And in the Gulf region overall and New Orleans alike, ratings of the state and local governments’ response are about as bad as they are for the federal government.

Still, while governments in general get poor marks, storm victims who had personal dealings with a variety of agencies and aid organizations give those groups, including the much-derided FEMA, more positive ratings.

Positive Ratings of Agencies (among those who dealt with them)
Gulf New Orleans
National Guard/Army 95% 94%
Charities (not Red Cross) 91 90
Police/Fire 86 69
Red Cross 85 81
Insurance Cos. 72 50
FEMA 60 52

More than eight in 10 New Orleans residents personally dealt with FEMA, and slightly more than half of them say that it did an excellent or good job assisting them; FEMA got a 60 percent positive rating from Gulf Coast residents who dealt with the agency. But other agencies — the National Guard, local emergency responders, the Red Cross and other charities — all are rated much higher.

Race

There’s a substantial racial component underlying the views of New Orleans residents, one that is not as stark in the rest of the affected counties. One reason is that blacks in New Orleans were more directly affected: More than two-thirds of New Orleans blacks say their area was severely damaged, compared with just over four in 10 whites there. A startling 96 percent of blacks say their homes were damaged, compared with 78 percent of whites. And 46 percent of blacks say a close friend or family member was killed as a result of the hurricane, compared with 29 percent of whites in the city. In the rest of the region, the differences between the races on these measures is narrower.

Katrina’s Effect in New Orleans
Whites Blacks
Area where live severely damaged 43% 68%
Primary residence damaged 78 96
Close friend/relative killed 29 46

By extension, blacks in New Orleans are 29 points more likely than whites there to say the hurricane has had a long-term negative impact on their health, 15 points more likely to say they haven’t personally recovered and 11 points more likely to say it’s hurt their emotional well-being. But they’re no more likely to be angry or frustrated with the government’s response.

Blacks in the city also are 14 points more likely than whites to say Katrina caused long-term damage to their personal finances. In addition to having lower incomes on average, blacks in the city who sustained property damage are more than twice as likely as whites to say their losses weren’t at all insured.

Most blacks, furthermore, see a racial element in the government’s response to the hurricane. In New Orleans, three in four blacks think race and poverty has affected the pace of the federal recovery program and six in 10 say recovery problems are an indication of racial inequality in this country.

Blacks in the Gulf Coast and nationally feel similarly; whites, in New Orleans, the Gulf Coast and nationally, tend to differ. In New Orleans, 29 percent of whites think recovery problems are an indication of racial inequality; it’s 16 percent among whites in the Gulf Coast region and 30 percent of whites nationally.

Perceived Racism in Recovery Effort
Whites Blacks
Race/poverty affecting recovery 39% 74%
Problems indicate racial inequality 29 61

However, while blacks are more likely to see racism in the recovery efforts, they’re no more critical than whites are in their personal dealings with FEMA. Forty-nine percent of blacks in New Orleans who dealt with FEMA say the agency did an excellent or good job assisting them; 51 percent of whites say the same. Similarly, blacks are about as likely as whites to rate the Red Cross’ assistance positively.

In New Orleans and the Gulf Coast, ratings of the federal recovery effort are similar among blacks and whites. However, blacks nationally rate the post-Katrina recovery effort more negatively than whites do. Eight in 10 rate the federal government’s response negatively, compared with two-thirds of whites. And more than six in 10 blacks are not confident the government can respond effectively to another disaster, compared with fewer than half of whites. Most of the difference though stems from the fact that blacks are twice as likely as whites to be Democrats.

Party ID

Overall, partisan differences are stronger on the national level than in the affected areas. More than eight in 10 Democrats and seven in 10 independents rate the federal government’s hurricane recovery efforts negatively; fewer than four in 10 Republicans agree. And while three in four Republicans are confident the government can respond to another disaster, just a third of Democrats think so.

In the Gulf Coast, however, majorities of Democrats and Republicans alike rate the federal government’s efforts negatively and the gap between the parties in confidence in the government to handle future disasters is far narrower.

Income

Income is a factor as well, but as not much as might be expected. Lower-income residents across the region are more likely to say Katrina has had a long-term negative impact on their finances; four in 10 people in households earning less than $50,000 say their losses were not insured and only 27 percent were fully insured.

Lower-income New Orleans residents are also more apt to say the situation has affected their personal health. But lower-income residents aren’t significantly more likely to say their area was severely damaged by Katrina or that their own property was damaged.

By State

Residents of the hurricane-affected counties in Alabama and Mississippi give their state and local governments far higher marks for hurricane response than do Louisiana residents. They’re also more likely than those in Louisiana to say federal recovery money has been well spent, and to be confident in the government’s ability to respond to another disaster.

Ratings of State/Local Governments’ Recovery Efforts
Positive Negative
Alabama and Mississippi 65% 34%
Louisiana 28 70
New Orleans 15 84

At the state level, Mississippians are the most likely to say their area was damaged by the hurricane — more than nine in 10 do (nearly four in 10 “severe”), compared with seven in 10 in Louisiana (about one in four “severe”), and to say their own property was damaged. But likely given what happened in New Orleans, Louisianans are the most worried about another hurricane hitting their area — more than six in 10 are worried, compared with fewer than half in Mississippi.

Louisiana residents are also the most apt to say the response to the hurricane makes them feel angry and frustrated. In contrast, most of those in the affected parts of Alabama and Mississippi say they’re hopeful about the government response; fewer than four in 10 Louisianans express the same.

Sex

Women in the Katrina-affected counties are more likely than men to say the hurricane adversely affected their long-term emotional well-being, 45 to 34 percent. Women in the Gulf are also more apt to be worried about another hurricane hitting their area (58 percent, vs. 47 percent of men) and to say that possibility has caused extra stress and anxiety in their life (46 percent, vs. 35 percent of men).

In New Orleans, women are likelier than men to be angry about the government’s response to the hurricane. They’re also much more apt than men to say they haven’t yet personally recovered from the hurricane — 82 percent, compared with 64 percent of men. Yet three in four women say the hurricane strengthened their trust in their fellow man, compared with six in 10 men.

Global Warming

Finally, this poll finds a slight shift nationally in views of whether the severity of recent hurricanes is linked to global climate change. Last year, Americans thought this was not the case, by a 54-39 percent margin. Today the public is more divided; 49 percent think recent severe hurricanes are just the kind of weather that happens from time to time, while 45 percent (up six points) think their severity is the result of climate change.

The percentages saying the severe weather likely results from global warming is up among both Democrats and independents; it’s not significantly changed among Republicans.

Percentage Saying Severe Hurricanes Result from Global Warming
Now 2005 Change
All 45% 39% +6
Democrats 57 46 +11
Independents 49 42 +7
Republicans 27 24 +3

Methodology

This survey was conducted by telephone among random samples of 1,109 adults nationally, including an oversample of blacks for a total of 176, Aug. 10-20, 2006; 501 adults in the Gulf Coast, Aug. 16-20; and 300 adults in New Orleans, Aug. 14-20. The New Orleans sample was supplemented by random cell-phone as well as land-line interviews. Error margins are three percentage points for the national sample, 4.5 points for the Gulf Coast sample and six points in New Orleans. Sampling, field work and tabulation for the Gulf Coast and New Orleans samples by TNS of Horsham, Pa., and for the national sample by ICR-International Communications Research of Media, Pa.

http://abcnews.go.com/US/PollVault/

Holyrood aide defiant on peerages probe:

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A SENIOR Downing Street official embroiled in the cash-for-peerages row will keep his job masterminding Labour’s Holyrood campaign, party sources insisted yesterday.

John McTernan faced calls for his removal by the Scottish National Party, which said his position had been made “untenable” by his role in the police inquiry.

Mr McTernan, the political secretary in Downing Street, has been questioned twice by police investigating claims by the SNP and others that senior Labour figures effectively sold peerages for multi-million pound loans to the party in the run-up to the 2005 general election.

Scottish Labour is fighting to avoid being sucked into the damaging “cash-for-honours” debate following the revelation this week that Jack McConnell, the First Minister, had been briefly interviewed as a witness.

The SNP has seized on that disclosure and Mr McTernan’s role, trying to draw a link between Scotland and a scandal previously confined to Westminster. Nicola Sturgeon, the SNP deputy leader, yesterday called on Mr McConnell to end Mr McTernan’s part-time role in Labour’s Glasgow HQ.

“Labour never explained why their campaign should be run by No10, instead of by Jack McConnell in Scotland,” she said. “But as someone at the epicentre of Labour’s cash-for-honours crisis, Mr McTernan’s position as the effective director of that campaign is now all the more extraordinary and untenable.”

Along with Ruth Turner, a No10 aide arrested last week, Mr McTernan is thought to be the Labour figure highest on the police radar. He, like Ms Turner, denies any wrongdoing and has not been charged.

Yesterday, friends of Mr McTernan insisted he intended to carry on with the campaign role. “He’s taking the whole thing as a bit of compliment, a sign that’s he’s rattling the SNP,” said a friend of Mr McTernan.

Mr McConnell is the nominal head of the Holyrood drive. But Tony Blair and Gordon Brown, the Chancellor, are also taking an intense interest in the campaign, tacit acknowledgement that a bad result for Labour could have consequences beyond Scotland.

In the past, sources close to Mr McConnell have suggested that the First Minister was unhappy about Mr McTernan’s presence. He was an adviser to the former first minister Henry McLeish, but was not kept on by Mr McConnell. Nor are the Chancellor’s followers fond of the Downing Street fixer.

But yesterday, both camps rallied round Mr McTernan in the face of the SNP attack. “John is staying. John is absolutely fine. He’s not going anywhere at all. Full stop,” said one Brownite source.

And a source close to Mr McConnell said: “The SNP want to make this election about cash-for-peerages and about anything but serious policy.” THE ROCK BUFF WHO WOULD BE FROM WEST WING

JOHN McTernan likes nothing more than to be called the Josh Lyman of Downing Street, a reference to the political adviser who fans consider to be the real star of The West Wing, the US political drama beloved by Westminster types.

Mr McTernan’s enemies would say the comparison fails because the slightly-built Downing Street political secretary lacks his screen idol’s looks. Friends would say it’s because Mr McTernan is too much of a rounded human being to be a complete political anorak, pointing to his surprising knowledge of rock and pop history: he once contributed reviews of musical history books to Scotland on Sunday.

That was during a brief spell not working in politics: he had been an adviser to Henry McLeish, who claimed Edinburgh-born Mr McTernan was “frozen out” by Jack McConnell. But the period in the wilderness was short, and by 2004 Mr McTernan had been appointed to his current, powerful role in Tony Blair’s office.

Related topics

- http://news.scotsman.com/topics.cfm?tid=347
http://news.scotsman.com/topics.cfm?tid=347
- http://news.scotsman.com/topics.cfm?tid=478
http://news.scotsman.com/topics.cfm?tid=478

Booyah Breakdown: Good to the Last DRIP

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COMPANY SYMBOL SPLIT ANNOUNCE RECORD DATE PAY DATE
Volt Information Sciences VOL 3 for 2 12/20/2006 1/15/2007 1/26/2007
Stage Stores, Inc. SSI 3 for 2 1/9/2007 1/18/2007 1/31/2007
Lundin Mining LMC 3 for 1 1/22/2007 2/5/2007 2/8/2007
Medical Action Industries Inc. MDCI 3 for 2 1/9/2007 1/23/2007 2/8/2007
ZOLL Medical ZOLL 2 for 1 1/25/2007 n/a 2/12/2007
Preferred Bank of Los Angeles PFBC 3 for 2 1/25/2007 2/5/2007 2/20/2007
Trimble Navigation Ltd. TRMB 2 for 1 1/25/2007 2/8/2007 2/22/2007
MarkWest Energy Partners MWE 2 for 1 1/25/2007 2/22/2007 2/28/2007
Harsco Corp. HSC 2 for 1 1/23/2007 2/28/2007 3/27/2007
Amphenol Corp. APH 2 for 1 1/17/2007 3/16/2007 3/30/2007

Stocks Say ‘No Deal’ to M&A

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Updated from 4:14 p.m. EST

Buyers did their work early and then took the afternoon off, leaving stocks narrowly mixed at the close of trading Monday.

The Dow Jones industrial Average finished up 3.76 points, or 0.03%, at 12,490.78, and the Nasdaq Composite rose 5.60 points, or 0.23%, to 2441.09. The S&P 500 was lower by 1.56 points, or 0.11%, at 1420.62.

“This is just the latest signal that the bulls and bears remain evenly matched,” said Ken Tower, chief market strategist with CyberTrader. “Each one attacks the other, but neither can make any headway. It’s a rangebound market.”

Gains of 1.8% in Hewlett-Packard (HPQ) and Intel (INTC) benefited the Dow.

The Nasdaq got help from Activision (ATVI) and Juniper Networks (JNPR) , both higher by 2.8%.

Roughly 2.70 billion shares changed hands on the New York Stock Exchange. Advancers beat decliners by a 9-to-7 margin. Volume on the Nasdaq reached nearly 1.97 billion shares, with winners outpacing losers 3 to 2.

Weighing on equities were worries about the Federal Reserve and when it might cut rates. For the past few months, traders have been looking for data that show a healthy economy, but not one that’s growing so rapidly as to cause significant delays in rate reductions.

Outlier numbers on either side of investors’ expectations about the economy — whether showing terrific growth or substantial softness — have generally led to selloffs in stocks. The policymaking Federal Open Market Committee meets Tuesday and Wednesday, but no change is expected in rates.

“We should see a shift from eyeing crude and energy prices to watching bonds,” said Marc Pado, U.S. market strategist with Cantor Fitzgerald. “While very few expect the Fed to hike rates at this meeting, the language could be a little more hawkish than some are anticipating. The strength in housing and some solid economic numbers have taken away any need to ease rates anytime soon.”

Yields on Treasuries rose. The 10-year was down 4/32 in price to yield 4.89%, and the 30-year bond was off 10/32 and yielding 4.99%. The dollar was mixed against the world’s other major currencies.

As for the day’s earnings, Dow component Verizon (VZ) posted fourth-quarter profits of $1.03 billion, or 35 cents a share, falling from $1.67 billion, or 59 cents a share, in the year-ago quarter. Excluding items, Verizon earned 62 cents a share, which beat the Thomson First Call average estimate by a penny. Verizon ended with a gain of 20 cents, or 0.5%, at $38.03.

Schering-Plough (SGP) was in line with estimates, and profits at Tesoro Petroleum (TSO) were stronger than expected. Toymaker Mattel (MAT) posted fourth-quarter earnings and revenue that easily topped forecasts.

Elsewhere, Symantec (SYMC) signed an agreement to acquire Altiris (ATRS) in an $830 million deal. Symantec was off 1.4% to close at $17.52, while Altiris surged 19.9% to $32.55.

Also in the M&A realm, a report out of France said that Bristol-Myers Squibb (BMY) and Plavix marketing partner Sanofi-Aventis (SNY) might be close to announcing a merger.

Shares of Bristol-Myers rose 4.7% to $27.43. Sanofi-Aventis was down 1.7% at $44.57.

On the research front, A.G Edwards upgraded its ratings on Home Depot (HD) and Lowe’s (LOW) to buy from hold. Home Depot was lower by 0.1%, while Lowe’s finished with a gain of 0.3%.

Commodities were mainly weaker. Crude oil futures fell $1.41 to close at $54.01 a barrel, and natural gas was off 26 cents to $6.91 per million British thermal units. Gold was lower by $1.50 at $643.20 an ounce, and silver was down 12 cents to finish at $13.25 an ounce.

Business big shot: Andrew Moss

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It has been a busy three years for Andrew Moss, but Avivas chief executive-in-waiting is about to get even busier. Since joining the UKs biggest insurer, he has restated the companys accounts under two new accounting methods, fought tax disputes with the European Commission and HM Revenue and Customs, been part of a 17 billion takeover bid and been part of a 1.6 billion acquisition.

Described as steady under fire, Mr Moss had plenty of practice at working under pressure during his four years as finance and operations director of Lloyds of London, where he helped to see the worlds oldest insurance market through the aftermath of the September 11 attacks in 2001.

Since becoming finance director of Aviva, Mr Moss has been praised for getting to grips with the complex life industry so quickly. He has impressed analysts, Merrill Lynch describing him as highly disciplined and robust. Cazenove called him authoritative and Man Securities said that he commanded respect.

The City is split on whether he is more or less aggressive a dealmaker than his predecessor Richard Harvey. Mr Moss was paid 1.1 million in 2005, but is likely to move closer to Mr Harveys pay of 1.9 million when the incumbent chief executive retires on July 11.

The 48-year-old previously worked for 11 years at HSBC and two years at Citigroup. He trained as a chartered accountant at Coopers & Lybrand and has a law degree from Oxford University. He is married with four children.