Detroit: No water shutoffs for next 15 days

DETROIT — Detroit suspended its aggressive policy of cutting off water to customers with unpaid bills on Monday, the latest response to a controversy that has prompted large protests and caught the attention of the judge overseeing the city's bankruptcy.

The city said there will be no shutoffs for the next 15 days. The disclosure was made in bankruptcy court where Judge Steven Rhodes is overseeing the nation's largest ever municipal bankruptcy. He has been encouraging Detroit to come up with alternatives to shutting off water for thousands of homes and businesses.

The issue gained national attention last month after activists appealed to the United Nations for assistance. About 2,000 people protested in Detroit last week during a national convention of liberal Democrats.

The water department stopped service to about 7,200 homes and businesses in June, compared to 1,570 in the same month last year. Water was restored to 43 percent after customers paid or worked out payment plans, though thousands more have been affected since last fall.

Water department Deputy Director Darryl Latimer said the 15 days will be used to educate customers on how to cure their overdue bills and avoid shutoffs.

The city "does not want to put its customers out of service," Latimer said.

Rhodes is overseeing Detroit's bankruptcy but hasn't ordered any direct action on the shutoffs. He has required officials to give him updates in court, which has put a spotlight on the issue.

Meanwhile, a lawsuit to stop the shutoffs was filed Monday, but Rhodes said, "There's nothing for me to do about that today."

"With the creativity of everyone involved, it can be solved. We've got people without water, and they need their water," he said.

People lose water if they're more than 60 days behind or owe $150. The average overdue bill is $540.

The reprieve for delinquent water customers was announced on the same day that the city is expected to say whether workers and retirees approved pension cuts that would trigger an $816 million bailout from the state of Michigan, foundations and the Detroit Institute of Arts. The money is crucial to preventing the sale of city-owned art and avoiding deeper pension cuts in the bankruptcy case.

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Follow Ed White at http://twitter.com/edwhiteap

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McDonald's, KFC in China face new food scandal

BEIJING — McDonald's and KFC in China faced a new food safety scare Monday after a Shanghai television station reported a supplier sold them expired beef and chicken.

The companies said they immediately stopped using meat from the supplier, Husi Food Co., Ltd. The Shanghai office of China's food and drug agency said it was investigating and told customers to suspend use of the supplier's products.

Dragon TV said Sunday that Husi, owned by OSI Group of Aurora, Illinois, repackaged old beef and chicken and put new expiration dates on them. It said they were sold to McDonald's, KFC and Pizza Hut restaurants.

The report added to a series of food safety scares in China that have battered public confidence in dairies, fast food outlets and other suppliers.

McDonald's Corp. and Yum Brands Inc., which owns KFC, Pizza Hut and Taco Bell, said they were conducting their own investigations.

"Food safety is a top priority for McDonald's," the company said on its microblog account. The company said it pursues "strict compliance" with consumer safety laws and regulations and has "zero tolerance for illegal behavior."

A third company, sandwich shop chain Dicos, said in a statement that it stopped using sausage patties supplied by Husi. Dicos is owned by Taiwan's Ting Hsin International Group, and the company website said it had 2,000 outlets in China as of September 2013.

The Shanghai office of the State Food and Drug Administration said it was working with police to investigate Husi.

"At present, the company has been sealed and suspect products seized," the agency said on its website.

McDonald's sealed 4,500 cases of beef, pork, chicken and other products supplied by Husi for investigation and Pizza Hut sealed 500 cases of seasoned beef, the city government said in a statement.

A woman who answered the phone at Husi's headquarters said no one was available to comment. The official Xinhua News Agency cited a company manager, Yang Liqun, who said Husi has a strict quality control system and will cooperate in the investigation.

The Communist Party secretary of Shanghai, Han Zheng, called for "severe punishment" of any wrongdoing, according to the city government statement.

McDonald's, based in Oak Brook, Illinois, said it was suspending the distribution and sale of products from the plant in question.

"If confirmed, the practices outlined in the report are completely unacceptable to McDonald's," the company said in a statement.

Yum's KFC is China's biggest restaurant chain, with more than 4,000 outlets and plans to open 700 more this year. The company, based in Louisville, Kentucky, said in a statement that "food safety is the most important priority for us. We will not tolerate any violations of government laws and regulations from our suppliers."

The company was badly hurt after state television reported in December 2013 that some poultry suppliers violated rules on drug use in chickens. Yum said KFC sales in China plunged 37 percent the following month. KFC launched an effort to tighten control over product quality and eliminated more than 1,000 small poultry producers from its supply network.

In a string of product scandals over the past decade, infants, hospital patients and others have been killed by phony or adulterated milk powder, drugs and other goods.

Foreign fast food brands are seen as more reliable than Chinese competitors, though local brands have made big improvements in quality.

The high profile of foreign brands means any complaints involving them attract attention, while their status as foreign companies with less political influence means Chinese media can publicize their troubles more freely.

Scandal-weary consumers on Monday expressed mixed feelings.

Chen Lu, 24, an employee of an Internet company, was eating a chicken burger and fries at a McDonald's in central Shanghai that was half-empty at midday, a time when most restaurants are crowded.

"My boyfriend called and told me not to eat McDonald's one minute after I ordered this chicken hamburger, but what can I do? I've already ordered and I am in a hurry," she said.

"I am worried about my health," she said. "I will try to avoid it, at least for a while. I am pretty disappointed in this brand."

Another diner, Liu Kun, a 24-year-old student from Nanjing who was visiting Shanghai, said he was not concerned.

"The incident won't change me eating here," Liu said. "There have been negative reports all the time. McDonald and KFC are the leaders in the industry."

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Associated Press researcher Fu Ting in Shanghai contributed to this report.

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US stock slip to start the week; Six Flags sinks

NEW YORK — The stock market drifted lower to start the week as more companies line up to post their quarterly earnings. Hasbro and Six Flags sank after turning in disappointing results, while concerns over tensions between Russia and the West also occupied investors' attention.

KEEPING SCORE: The Standard & Poor's 500 index fell nine points, or 0.4 percent, to 1,970 as of 11:53 a.m. Eastern time.

The Dow Jones industrial average fell 89 points, or 0.5 percent, to 17,010, while the Nasdaq composite lost 16 points, or 0.4 percent, to 4,417.

WHAT'S HAPPENING: "It looks like we hit a speed bump," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. "Earnings are coming through quite nicely so far, but geopolitics trump earnings today."

EUROPE: European leaders discussed imposing tougher sanctions on Russia for its backing of separatists in Ukraine accused of shooting down a Malaysia Airways passenger plane last week. Major stock markets in Europe headed lower. Germany's DAX dropped 1.1 percent while France's CAC-40 lost 0.7 percent. Britain's FTSE 100 slipped 0.3 percent.

HASBRO: The toy maker Hasbro turned in second-quarter earnings and revenue that fell short of analysts' targets. Rising sales of My Little Pony, Transformers and other toys weren't enough to stem a decline in sales of games such as Twister. Hasbro's stock sank $1.33, or 3 percent, to $51.87.

AMUSEMENT: Six Flags Entertainment reported higher profits and sales in the second quarter, but the theme-park operator's revenue came up short of what analysts had expected, partially a result of sluggish attendance. Six Flags slumped $2.97, or 7 percent, to $38.03.

DRILLING: Halliburton, the oil and gas servicing company, said that its second-quarter earnings rose 20 percent and that it plans to buy up to $6 billion of its own shares. Revenue came in higher than analysts' estimates. Halliburton's stock rose 42 cents, or 0.6 percent, to $71.35.

EARNINGS PARADE: Nearly a third of the companies in the S&P 500 index will hand in their quarterly results this week, including heavyweights such as Apple on Tuesday, Boeing on Wednesday and Amazon on Thursday. Chipotle Mexican Grill and Netflix will post quarterly earnings after the close of regular trading on Monday.

BONDS AND OIL: Prices for U.S. government bonds rose. The yield on the 10-year Treasury note fell to 2.45 percent from 2.48 percent late Friday. Benchmark U.S. crude oil rose 25 cents to $102.16 a barrel on the New York Mercantile Exchange.

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Verizon boosts FiOS uploads to match downloads

NEW YORK — Verizon is boosting the upload speeds of nearly all its FiOS connections to match the download speeds, vastly shortening the time it takes for subscribers to send videos and back up their files online.

Starting Monday, all new subscribers will get "symmetrical" connections. The cheapest plan will deliver 25 megabits per second up and down, an increase from 15 megabits down and 5 megabits up.

Current subscribers will see their upload speeds raised over the coming months, product manager Fowler Abercrombie said. He expects that 95 percent of Verizon customers will see higher speeds. For the rest, fully symmetrical speeds may not be possible for technical reasons.

With the speed increase, Verizon Communications Inc. is taking advantage of a technical ability that its all-fiber FiOS network has. Rival offerings from cable companies, for the most part, can't match that because cables were originally designed to send video to homes, not the other way around. Cable upload speeds top out at about 35 megabits per second, while Verizon's top tier now offers 500 megabits per second.

Those who share or upload big files will get the greatest use out of higher upload speeds. At the new bottom-tier speed of 25 megabits per second, uploading an hour-long, 3-gigabyte high-definition video would take 16 minutes, a fifth of the time it would have taken on the previous 5-megabit plan. At the highest, 500-megabit tier, the upload would take just 50 seconds.

Verizon's marketing materials claim that higher upload speeds will also benefit online gamers and eBay shoppers. In real-life use, however, it would be very rare for these activities to see a boost from higher upload speeds.

Verizon has just over 6 million FiOS Internet customers.

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Mass. gas prices drop a nickel

BOSTON — Massachusetts gasoline prices are down a nickel per gallon.

AAA Southern New England reports Monday that the cost of a gallon of self-serve regular has dropped 5 cents to an average of $3.62.

The current price is 6 cents per gallon lower than a month ago and 9 cents lower than at the same time last year, but still a nickel higher than the national average.

AAA found self-serve regular selling for as low as $3.45 per gallon to as high as $3.89.

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Obama gives protection to gay, transgender workers

WASHINGTON — President Barack Obama on Monday gave employment protection to gay and transgender workers in the federal government and its contracting agencies, after being convinced by advocates of what he called the "irrefutable rightness of your cause."

"America's federal contracts should not subsidize discrimination against the American people," Obama said at a signing ceremony from the White House East Room. He said it is unacceptable that being gay is still a firing offense in most places in the United States.

The fight over a gay discrimination ban for private employers has become embroiled in a dispute over whether religious groups should get an exemption.

Until last month, Obama long resisted pressure to pursue an executive anti-discrimination order covering federal contractors in the hope that Congress would take more sweeping action banning anti-LGBT workplace discrimination across America. A bill to accomplish that goal — the Employment Non-Discrimination Act — passed the Senate last year with some Republican support, but has not been taken up by the GOP-controlled House. "We're here to do what we can to make it right," Obama said.

Some prominent gay-rights and civil-rights organizations which had been longtime supporters of that bill announced earlier this month that they were withdrawing their support because of a broad religious exemption included to attract Republican votes.

Since Obama announced that he would take executive action, he's faced pressure from opposing flanks over whether he would include an exemption for religious organizations. He decided to maintain a provision that allows religious groups with federal contracts to hire and fire based upon religious identity, but not give them any exception to consider sexual orientation or gender identity. Churches also are able to hire ministers as they see fit.

Obama's action comes on the heels of the U.S. Supreme Court's recent ruling in the Hobby Lobby case that allowed some religiously oriented businesses to opt out of the federal health care law's requirement that contraception coverage be provided to workers at no extra charge. Obama advisers said that ruling has no impact on non-discrimination policies in federal hiring and contracting.

Obama said 18 states and more than 200 local governments already ban employment discrimination based on sexual orientation, as well as a majority of Fortune 500 companies. But he noted that more states allow same-sex marriage than prohibit gay discrimination in hiring.

"It's not just about doing the right thing, it's also about attracting and retaining the best talent," Obama said.

The change for federal contracting will impact some 24,000 companies with 28 million workers, or one-fifth of the U.S. workforce. Many large federal contractors already have employment policies barring anti-gay workplace discrimination. However, the Williams Institute at UCLA Law School estimates that the executive order would extend protections to about 14 million workers whose employers or states currently do not have such nondiscrimination policies.

While few religious organizations are among the biggest federal contractors, they do provide some valued services, including overseas relief and development programs and re-entry programs for inmates leaving federal prisons.

Obama's signature amended two executive orders. The first, signed by President Lyndon Johnson in 1965, prohibits federal contractors from discriminating based on race, religion, gender or nationality in hiring. President George W. Bush had amended Johnson's order in 2002 to add the exemption for religious groups.

Obama added sexual orientation and gender identity to the list of protections, and ordered the Labor Department to carry out the order. Administration officials said that means the change will probably take effect by early next year.

Obama also amended an order signed by President Richard Nixon in 1969 to prevent discrimination against federal workers based on race, religion, gender, nationality, age or disability. President Bill Clinton added sexual orientation, and Obama will include gender identity in a change that will immediately take effect.

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Follow Nedra Pickler at http://twitter.com/nedrapickler

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World stocks slide as pressure on Russia grows

LONDON — Global stock markets fell again on Monday as tensions grew between Russia and the West over the downing of an airliner in eastern Ukraine.

The shooting down last week of the Malaysia Airlines plane with 298 people aboard has worried some investors that Western governments, already alarmed by Russia's support for rebels in Ukraine's east, might toughen economic sanctions. The European Union's foreign ministers will meet Tuesday to discuss such penalties.

The disaster, in an area controlled by pro-Russian separatists, has sparked international condemnation and increased pressure on Russia to stop meddling in Ukraine. Russian officials have blamed Ukraine's government for creating the situation and atmosphere in which the plane was downed.

"The more pressure that builds on Russia the more volatile European indices will be," said strategist Evan Lucas at IG Markets in a report. "With the strong trade links between the continent and Russia, any disruptions to this through sanctions will cause profit taking on European indices."

In Europe, Germany's DAX fell 1.1 percent to close at 9,612.05 while France's CAC-40 shed 0.7 percent to 4,304.74. Britain's FTSE 100 dropped 0.3 percent to 6,728.44.

Wall Street traded lower, with the Dow falling 0.5 percent to 17,013.78 and the S&P 500 dropping by the same rate to 1,968.93.

Earlier, China's Shanghai Composite Index declined 0.2 percent to 2,054.48 points and Hong Kong's Hang Seng was off 0.3 percent at 23,387.14. Tokyo was closed for a holiday.

Sydney's S&P/ASX 200 added 0.1 percent and Seoul's Kospi fell 0.1 percent. Markets in Southeast Asia were mostly higher. Jakarta rose 0.8 percent despite tensions over presidential election results due out Tuesday, with both candidates claiming victory.

Investors were looking ahead to U.S. earnings reports amid hopes American economic growth is recovering. Results from Apple, Microsoft and Coca Cola were due out Tuesday and Caterpillar on Thursday.

In energy markets, U.S. benchmark crude for August delivery was up 80 cents to $103.93 per barrel in electronic trading on the New York Mercantile Exchange. The contract has risen in recent days on worries that the war in Gaza might further destabilize the Middle East, the world's most important oil-producing region.

The euro edged down to $1.3523 from $1.3525 late Friday while the dollar fell to 101.34 yen from 101.36 yen.

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Thirst for US craft beer grows overseas

RICHMOND, Va. — Helping to quench a growing thirst for American craft beer overseas, some of the United States' largest craft breweries are setting up shop in Europe, challenging the very beers that inspired them on their home turfs.

It's the latest phenomenon in the flourishing craft beer industry, which got its start emulating the European brews that defined many of the beer styles we drink today. The move also marks a continuing departure from the status quo of mass market lagers or stouts, demonstrating a willingness of American breweries to explore — and innovate — old world beer styles from Belgium, Germany and the United Kingdom.

The U.S. craft beer scene is so fresh and dynamic, Europeans are becoming as excited about it as Americans, says Mike Hinkley, co-founder of San Diego-based Green Flash Brewing Co. "Even though they're used to all these amazing European beers, now there's just more variety."

U.S. craft beer exports grew six-fold during the past five years, jumping from about 46,000 barrels in 2009 to more than 282,500 barrels in 2013, worth an estimated $73 million, according to the Brewers Association, the Colorado-based trade group for the majority of the 3,000 brewing companies in the United States. Of course, it's still a fraction of overall production; U.S. craft brewers produced a total of 15.6 million barrels last year.

Just last week, Green Flash became the first U.S. craft brewery to begin making and selling fresh beer in the European market under a deal with Brasserie St-Feuillien, a Belgian brewery founded in 1873. Under the watchful eye of Green Flash brewmaster Chuck Silva, the brewery is making and selling fresh West Coast IPA for distribution in the U.K., Belgium, France, the Netherlands and Italy.

Meanwhile, 500 miles away in Berlin, Stone Brewing Co. is taking a different approach to meeting overseas demand — spending about $25 million to renovate a historic gas works building into a brewery, packaging and distribution center, restaurant and garden set to open late next year or early 2016. Escondido, California-based Stone — one of the top 10 biggest craft breweries in the U.S. — will make beer for its bistro and distribution throughout Germany and Europe.

"The idea that we're going to go across the pond as it were to brew our style of beers fresh in Europe is an exciting prospect for us," said Stone CEO and co-founder Greg Koch, who announced the overseas expansion plans over the weekend. "When we started out at Stone 18 years ago, we were inspired by a lot of the European brewers ... and now to see an inspiration bounce back around the world, that's amazing."

Brooklyn Brewery's brewmaster Garrett Oliver agreed, saying what used to be a one-way street in the beer world is coming full-circle: "The creative spirit and ideas that have been developing in the U.S. are flowing back in that direction. Now it's a two-way street and we all have something to offer."

In the spring, New York's Brooklyn Brewery and Carlsberg Sweden opened a craft brewery and restaurant making new beers that are being distributed throughout Scandinavia. The staff of Nya Carnegie in Stockholm was hired by Brooklyn Brewery and trained by its brewmaster. Brooklyn Brewery is still exporting its own beers to more than 20 countries in addition to its joint venture and also is looking at similar projects in other European capitals, South America and Asia. Around 30 percent of its business is exports.

But the thirst for American craft beer hasn't always been there.

When the Brewers Association first gave presentations overseas about the American craft beer scene about 10 years ago, people would laugh aloud. They'd even quote a Monty Python skit comparing American beer to water.

"They're not laughing anymore," said Bob Pease, chief operating officer for the U.S. beer trade group. "The word is out now that the highest quality beer, the most diverse beer, is coming from American craft brewers."

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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum .

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Market Basket feud escalates with firings, rally

TEWKSBURY, Mass. — A family feud over control over the Market Basket supermarket chain escalated Monday as thousands of employees and their supporters rallied at the company's headquarters for a second time and called for the reinstatement of their former chief executive.

Workers said the feud is starting to affect stores, as employees refuse to make deliveries and some shelves are left empty. Eight employees were fired over the weekend after they skipped work to attend a rally Friday.

The rallies outside the company's headquarters were organized to show support for fired CEO Arthur T. Demoulas.

Demoulas was fired last month by a board controlled by his cousin, Arthur S. Demoulas. Both are grandsons of the chain's founder, and their feud dates back decades. The chain has 71 stores in Massachusetts, New Hampshire and Maine.

The company, known for its low prices, said in a statement that eight employees were fired over the weekend because "their actions continued to harm the company, negatively impacted customers, and inhibited associates' ability to perform their jobs."

"I knew I was putting my neck out there," Tom Trainor, a distribution supervisor with 41 years at the company, told The Boston Globe. "They don't even bother to tell you to your face."

Meanwhile, some Market Basket stores started running out of fresh produce as deliveries had stopped Friday. Customers who went shopping Sunday were greeted by empty shelves in some sections of the stores.

At Monday's rally, one of the fired workers, Steve Paulenka, a former facilities and operations supervisor, estimated the crowd at 5,000 people.

"You go back to your stores. Shut it down," Paulenka told a cheering crowd.

In an open letter to its customers published Saturday in The Boston Globe, Market Basket's co-Chief Executive Officers Felicia Thornton and Jim Gooch apologized to shoppers.

"We recognize that transitions aren't always easy and appreciate that this has been an emotional time for many associates," the letter said. "Unfortunately, in response to the recent management changes, some have lost sight of the top priority — taking care of you — and instead have engaged in actions that harm Market Basket's reputation and prevent us from meeting our obligations to you."

Some Massachusetts lawmakers have called for a boycott of the company, led by state Sen. Barry Finegold, D-Andover, whose district includes the company's headquarters in Tewksbury. As of Monday, 37 state lawmakers and mayors had agreed to encourage constituents to stop shopping at Market Basket until Arthur T. Demoulas is reinstated, said Finegold, who attended Monday's rally.

"I've never seen a rally where workers are not asking for more wages or benefits. All they are asking for is the reinstatement of the person that's been running this company," Finegold said. "It's about keeping the culture of this company they've built that's benefited so many all these years. So many people are paycheck to paycheck. If you can save 10 percent of your food bill, it's a big deal."

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German supermarket tycoon Albrecht dead at 94

BERLIN — Karl Albrecht, co-founder of the Aldi grocery store empire and one of the world's richest people, has died in the western German city of Essen. He was 94.

Essen's city hall told The Associated Press that Albrecht was buried Monday in a family plot in a small ceremony in the city's Bredeney district where he lived.

Aldi's press office says Albrecht died July 16, giving no further details.

Albrecht and his brother Theo, who died in 2010, founded the Aldi supermarket chain in 1962 — the name being short for "Albrecht Discount."

Today it has thousands of stores in 17 countries in Europe, North America and Australia.

Albrecht was ranked No. 24 on this year's Forbes list of the world's richest people with an estimated net worth of $25.9 billion.

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