Clem’s Chronicles: GAS PRICES SOAR/CIGARETTE COMPANIES LOSE AGAIN

Clem Lane here-have a safe and happy Memorial Day Weekend. Here’s what’s been happening while you’ve been dealing with your own life today…….

GAS PRICES-Memorial Day Weekend and knock me over with a feather-gas prices have shot up just as Americans get in their cars for a little getaway. David Muir, reporting for WORLD NEWS, notes that “the cost of a gallon has jumped more than a quarter in just a month.” Setting aside conspiracy theories for a second, please explain why I’m paying more even while we’re going through a recession Mr. Muir: “Two major factors are driving those gas prices up-summer demand and investors, banking on the economy turning around, are now investing in oil-hoping that when the engines of the economy re-start, they’ll need oil to begin churning.” Now it’s important to remember how bad it was last year at this time-$3.79 a gallon, a figure almost 40% more than today’s average price of $2.31. But today’s figure is a lot higher than just six months ago-David Muir tells us that “drivers are spending $250 million more a day on gasoline in this country” than they were at the beginning of the year. And those drivers and other vacationers are continuing to watch their spending which Muir tells us has led to some real deals on airfare and hotels(Muir: “$99 plane tickets from LA to NY…unheard of just months ago”). Deals or not, Muir adds that “odds are American families now paying more to fill up are staying closer to home to make up for it.”

BIG TOBACCO COURT RULING- A federal appeals court on Friday agreed with the major elements of a 2006 landmark ruling that found the nation’s top tobacco companies guilty of racketeering and fraud for deceiving the public about the dangers of smoking. A three-judge panel of the U.S. Court of Appeals in Washington unanimously upheld requirements that manufacturers change the way they market cigarettes. The requirements, which have been on hold pending appeal, would ban labels such as "low tar," "light," "ultra light" or "mild," since such cigarettes have been found no safer than others. Pierre Thomas, filing for WORLD NEWS, reports that “the tobacco companies today vowed to keep fighting in court. Since the 2006 ruling against them, the companies have continued to aggressively advertise their product.” And the damage done in that time? “In those three years”, Thomas notes, “more than a million young people have joined the smoking ranks. 1.2 million have died from smoking-related illnesses.” In addition to the ban on using “mild” etc, Thomas says that “if today’s ruling is upheld, the tobacco companies would be required to take out ads, and post on their websites, statements correcting the record and admitting that they have lied to consumers.”

MINNESOTA CHEMO BOY-Jason Ryan reports that federal charges have been filed against Colleen Hauser, the Minnesota mother who fled with her cancer stricken son rather than submit to chemotherapy treatments. 13-year-old son Daniel has Hodgkin’s Lymphoma. The charge in the complaint is Travel in interstate commerce to avoid prosecution. The FBI affidavit alleges Colleen Hauser fled Minnesota to avoid being prosecuted on two counts of depriving another of custodial or parental rights. The paperwork gives the federal government jurisdiction to assist in finding and arresting Hauser on the state charges. Ms. Hauser and her son were last seen in Southern California on Tuesday. Rumors abound that they are in Mexico seeking alternative remedies for Daniel. Ryan notes “The case has now become an international manhunt with Interpol being notified and US Marshals being deployed to Mexico from the San Diego Field Office and their office from the US Embassy in Mexico. According to one source US Marshals and Mexican law enforcement officers were in Tijuana looking for Hauser and he son. In a statement US Marshals spokesman Jeffrey Carter told ABC News, ‘I can confirm U.S. Marshals are assisting Minnesota authorities. We have deputy marshals in Mexico now and are working with Mexican authorities to follow up on several leads.”

MELISSA HUCKABY-Melissa Huckaby, accused in the murder of 8-year-old girl, was back in court today in Tracy, California. Huckaby was due in court today to enter a plea to charges that she kidnapped, raped and murdered Sandra Cantu.  Huckaby’s attorney asked to postpone the plea, saying he needs more time to review the new charges and evidence. She’s now scheduled to return to court on June 12.
Separately, new charges have been filed accusing Melissa Huckaby of previously slipping harmful substances to two others – a 7-year-old girl and an adult male. Prosecutors filed those charges yesterday, but won’t give details of that case, citing a gag order.

ANOTHER GLASS CEILING SHATTERED- Xerox Corp. said yesterday that Chief Executive Anne Mulcahy will retire July 1, to be succeeded by Ursula Burns. Ms. Burns, currently the company’s president, will become the first African-American woman to be the CEO of a Fortune 500 company. Speaking today at the Rochester Institute of Technology’s graduation ceremony, she reflected on how far she’d come. Burns: “I can assure you that no one at my commencement was pointing at me and predicting that I would become a CEO. Women presidents of large global companies were non-existent. Black women Presidents of large companies were unimaginable.” Kate Snow, filing for WORLD NEWS, says “the script started here in New York City, where Ursula Burns grew up in the projects with a single mother.” Snow notes that “Burns joined Xerox in 1980 as a summer intern…..At one time (1987) she was executive assistant to the CEO of Xerox…and now Ursula Burns is the CEO.”

SOUTER REPLACEMENT-George Stephanopoulos provided the following update on WORLD NEWS regarding who the Obama Administration might be considering to replace Supreme Court Justice David Souter after this term: “White House aides say the President has not made a final decision but has spoken to several candidates and the background checks are all but completed and the announcement is almost certain to come next week. The top three candidates, Solicitor General Elena Kagan…Judge Diane Wood out of Chicago….and Judge Sonia Sotomayer of the Appeal Court in NY.”

SWINE FLU VACCINE—Lisa Stark reports that the Centers for Disease Control is testing at least ” two versions of the new flu virus that will help scientists develop a possible vaccine. It hopes to ship those out to manufacturers next week.” Stark notes that this is a $1 billion program and sent out the following breakdown of where the money is going:
Novartis  $288.8 million
GSK  $181.1 million
Sanofi Pasteur  $190.6 million
$150 million to the three companies listed above and two others(MedImmune and Australia’s CSL) to develop test lots, do clinical trials and test for potency.
The remaining money is still in contract negotiations.
While the Obama Administration isn’t talking mass inoculation, “ By this fall, the Government plans to have enough vaccine to inoculate 20 million people.”
 
OTHER STUFF-
–SHUTTLE ATLANTIS LANDING—Thunderstorms today at Cape Canaveral forced NASA to scrub the Shuttle Atlantis landing this morning. They’ll try again tomorrow. The bad weather in Florida is expected to continue this weekend however. As a precaution, NASA activated its backup touchdown site at Edwards Air Force Base in California, where good weather was expected.  There are three Saturday landing opportunities at Kennedy Space Center (starting at 9:16am ET) and Edwards Air Force Base(starting at 10:45am ET).
–FLORIDA FLOODING-Rain pelted northeast Florida for a fifth straight day, and the weekend could be offering more of the same. Gov. Charlie Crist today proclaimed a state of emergency for Brevard, Clay, Duval, Flagler, Lake, Nassau, Orange, Putnam, Seminole, St. Johns and Volusia counties. The declaration allows the activation of the National Guard, permits agencies to waive some rules in order to respond to the emergency and suspends some toll collections. No evacuations at this point and flooding damage was concentrated in certain neighborhoods rather than being widespread.
–FDIC- Federal regulators on Friday adopted a new system of special fees paid by U.S. financial institutions that will shift more of the burden to bigger banks to help replenish the deposit insurance fund. This follows yesterday’s BankUnited failure which will cost the fund nearly $5 billion. 
–GM BORROWS MORE-Matt Jaffe/Charlie Herman report: “General Motors announced today that it has borrowed $4 billion from Treasury. The struggling automaker has now taken a total of $19.4 billion in government aid. Treasury officials said today’s deal is consistent with what they’ve previously outlined. Meanwhile, GM said in a statement, ‘We appreciate President Obama’s and his administration’s ongoing support of GM and the domestic U.S. auto industry as we undertake the difficult but necessary actions to reinvent our company.’ The automaker has until June 1 to finalize its restructuring plan and avoid bankruptcy.”
–THE FRIDAY NIGHT BANK CLOSURE-Regulators have shut down Strategic Capital Bank in Illinois, marking the 35th failure of a federally insured bank this year and the second this week. The Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Champaign, Ill. It had $537 million in assets and $471 million in deposits as of May 13. The FDIC says the bank’s deposits will be assumed by Midland States Bank, based in Effingham, Ill. Its branches will reopen Tuesday as a branch of Midland States Bank.
–ROXANA SABERI-American journalist Saberi, who spent four months in an Iranian prison after she was accused of spying for the US, returned to the US for the first time since her ordeal ended. Roxana Saberi told reporters at Washington D.C.’s Dulles airport upon her arrival that singing the national anthem helped keep her going. "And it may sound corny, but I’m so happy to be home in the land of the free."