Paw Print Rewind #027: July 25, 2015

Editor’s Note: This is the Paw Print Rewind, a daily recap of the top news headlines.

Philippine ferry sinks

The MBCA Kim-Nirvana, a ferry which carried 189 passengers and crew, capsized off the central Philippines in heavy waves, killing at least 36 people, but the majority of those on board were rescued, according to the coast guard and police.

The motorized outrigger had 173 passengers and 16 crew on board, and capsized minutes after leaving the port of Ormoc.

127 people survived, according to coast guard spokesman Armand Balilo.

“Search and rescue operations are ongoing. Initially, we learned that it was due to big waves.”

-Rey Gozon, Office of Civil Defense regional director

“I told [another passenger] ‘Please save me.’”

-May Sopa, passenger; to CNN Philippines

They bobbed on the water and attempted to paddle ashore. Two other women and a 10 year old boy also latched on to the water container they were on.

“There was an occasional swell, but the sea conditions were manageable. Some motorized outriggers were able to sail.

“There was no gale warning and while there was a tropical depression, it was far from the area of the accident.”

-Armand Balilo, coast guard spokesman

Iraqi jet mistakenly bombs Baghdad district; five killed

An Iraqi plane accidently dropped a bomb on an eastern Baghdad neighborhood, according to police, killing at least five people and destroying several homes.

Five people died after the Sukhoi jet took part in an airstrike against Islamic State militants, according to Iraqi television and police.

Katrin Nyman-Metcalf blocked for U.N. digital privacy investigator post

Katrin Nyman-Metcalf, who was picked as the U.N.’s first digital privacy investigator, was blocked by the Human Rights Council’s German president.

Metcalf was ranked first by a consultative group of the ambassadors of Poland, Chile, Greece, Algeria, and Saudi Arabia, but Human Rights Council German president Joachim Ruecker proposed the second-ranked candidate Joseph Cannataci from Malta.

“Concerns were raised as to whether [Metcalf] was the best qualified candidate for this position.”

-Joachim Ruecker, Human Rights Council German president

The investigator will be able to set the standard for the digital right to privacy, deciding how far governments should be pushed for conducting surveillance for security reasons.

“It seemed in this criticism that he had received about me, these people who criticized me wanted somebody to wave a flag for [former U.S. security contractor Edward] Snowden.

“We all see these surveillance scandals and of course that’s upsetting, but at the same time there’s more and more pressure to do something against terrorism. There are lots of things that are pushing in different directions.”

-Katrin Nyman-Metcalf, U.N. digital privacy investigator candidate

“We take note that the first ranked candidate on the consultative group’s list for the special rapporteur on privacy is a highly qualified woman. But she was not selected. That was unfortunate.”

-Keith Harper, U.S. ambassador

“To be totally honest, in the last few days I’ve really lost interest because of all these political games, so I was quite relieved with this outcome. Frankly there was opposition to me and the reasons were found.”

-Katrin Nyman-Metcalf

GM recalls 780,000 SUVs for possible lift gate issue

GMChandlerITInnovationCenter14.jpg

General Motors is recalling nearly 780,000 crossover SUVs, mainly in North America, because their power lift gates could suddenly fall and hit people.

The recall covers 2008-2012 Buick Enclaves, 2009-2012 Chevrolet Traverses, 2007-2012 GMC Acadias, and 2007-2010 Saturn Outlooks, according to the Detroit-based company.

Dirt can get into the gas struts that hold up the gate, causing them to wear and fail, according to GM.

The company has 56 injury reports, according to General Motors.

The recall covers about 690,000 vehicles in the United States, 36,000 in Canada, and 54,000 in Mexico.

Chesapeake Energy ordered to pay $379.7 million in bond dispute

Image #: 17624525    Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, April 17, 2012. From a single 6,000-square-foot building in 1989, the multi-building complex today contains almost one million square feet of office space and includes employee perks like on-site Botox treatments at the headquarters. Chesapeake Energy Corp. CEO Aubrey McClendon is one of the most successful energy entrepreneurs of recent decades. But he hasn't always proved popular with shareholders of the company he co-founded, the second-largest natural gas producer in the United States. Now, a series of previously undisclosed loans to McClendon could once again put Chesapeake's CEO and shareholders at odds.       REUTERS/Steve Sisney (UNITED STATES - Tags: BUSINESS ENERGY)       REUTERS /STEVE SISNEY /LANDOV
Image #: 17624525 Chesapeake Energy Corporation’s 50 acre campus is seen in Oklahoma City, Oklahoma, April 17, 2012. From a single 6,000-square-foot building in 1989, the multi-building complex today contains almost one million square feet of office space and includes employee perks like on-site Botox treatments at the headquarters. Chesapeake Energy Corp. CEO Aubrey McClendon is one of the most successful energy entrepreneurs of recent decades. But he hasn’t always proved popular with shareholders of the company he co-founded, the second-largest natural gas producer in the United States. Now, a series of previously undisclosed loans to McClendon could once again put Chesapeake’s CEO and shareholders at odds. REUTERS/Steve Sisney (UNITED STATES – Tags: BUSINESS ENERGY) REUTERS /STEVE SISNEY /LANDOV

Manhattan U.S. District Judge Paul Engelmayer ordered Chesapeake Energy to pay $379.7 million to bond investors, after the natural gas company waited too long to tell them of its plan to redeem $1.3 billion of bonds six years early.

Engelmayer agreed with bond trustee Bank of New York Mellon that holders of Chesapeake’s 6.775 notes maturing in 2019 were entitled to a “make-whole” price because of the early redemption.

The payout is over triple the roughly $100 million that Chesapeake hoped to distribute in “restitutionary” damages.

“We are pleased with the court’s decision vindicating the noteholders’ interests.”

-Kevin Heine, Bank of New York Mellon spokesman

“Investors who decided to buy [or hold] the 2019 notes were beneficiaries of a contract. The interest in respecting investors’ legitimate expectations therefore supports a payout keyed to the indenture’s treatment of redemptions after March 15, 2013.”

-Paul Engelmayer, Manhattan U.S. District Court judge

The notes were redeemed in May 2013 in a refinancing, and Chesapeake recorded a $33 million loss at the time.

Jarden buying Waddington for $1.35 billion

Jarden is buying disposable tableware maker Waddington for $1.35 billion, bolstering a brand portfolio that includes Sunbeam kitchen appliances and Coleman outdoor gear.

“We think Jarden is very focused on top-line synergies for this transaction.”

-John Faucher, J.P. Morgan analyst

The deal is expected to account for about five percent of adjusted profit in 2016, according to the Rye, NY–based company.

American resuming Caracas-JFK route

American Airlines

American Airlines will restart its Caracas-New York route on December 17th.

The Fort Worth, TX-based company will offer service between the Venezuelan capital and New York’s John F. Kennedy International Airport five times a week, and bookings can be made immediately.

“We continue working with the government of Venezuela to reach resolution on the outstanding [$644 million according to their Q1 2015 report].”

-Laura Masvidal, American Airlines spokeswoman

Apple Pay launches in UK

Apple has introduced its Pay mobile payments service in the UK after holdout Barclays became the last major UK bank to sign up for the service.

250,000 outlets support the service, from the London Underground to coffee shops, retailers, and travel businesses, giving Pay a wider availability in the UK than when it first launched in the United States last year.

“We actually think that the UK can be our leading market for Apple Pay, given the unique characteristics [of the market].”

-Jennifer Bailey, Apple Pay vice president

Setup for the service can be done via the iPhone 6, iPhone 6 Plus, iPad Air 2, or iPad mini 3. Customers use the device’s camera to scan an image of their credit or debit cards and then confirm their details through a text message, email, or phone call from their bank.

To make payments, customers hold their phone, tablet, or Apple Watch near a merchant’s contactless terminal while touching the mobile device’s home button or by double-tapping the smartwatch’s face.

JPMorgan profit up as tax bill, expenses fall

File photo of JP Morgan Chase's international headquarters on Park Avenue in New York

JPMorgan Chase has reported a strong rise in profit, helped by a drop in legal and restructuring expenses, and a smaller tax bill.

JPMorgan’s non-interest expenses have fallen six percent to $14.5 billion in the quarter, helped by efforts to streamline its business as well as lower legal and mortgage banking expenses.

Legal expenses fell 57% to $291 million.

The bank paid an effective tax rate of 25%, down from the 30% in Q2 2014, as its tax bill dropped 13% to $2.81 billion.

That helped net income attributable to common shareholders rise to $5.78 billion ($1.54/share), from $5.57 billion ($1.46/share) a year earlier.

Net revenue fell 3.2 percent to $24.53 billion due to a fall in revenue from mortgage banking and fixed-income trading.

“Their beat was mainly driven by a lower-than-expected tax rate, and if you held their tax rate constant, the quarter is not as good as it looks.”

-Paul Miller, FBR analyst

Honda’s U.S. auto finance arm to pay $24 million over loan pricing problems

American Honda Finance will pay $24 million in restitution over allegations that its loan pricing practices caused minority customers to pay higher interest rates than white borrowers did, according to the U.S. Consumer Financial Protection Bureau and Department of Justice.

The company will also change its pricing and compensation system to reduce the potential for discrimination, according to the agencies.

American Honda Finance does not make loans directly to consumers, but receives loan applications through car dealers. These dealers can vary a loan’s interest rate after the initial price set by Honda on creditworthiness.

Honda charged thousands of African-Americans, Hispanics, and Asians/Pacific Islanders higher interest rates because of their race, according to the complaint.

The average African-American borrower paid about $250 more during the course of their loan, according to regulators.

As part of the agreement, the company has agreed to limit car dealers’ interest rate markups on Honda loans to between one and 1.25 percent.

American Honda Finance will also pay $1 million into an auto finance education program for minorities, according to regulators.

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