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US service firms grow at fastest pace since August

Written By Unknown on Selasa, 06 Mei 2014 | 00.33

WASHINGTON — U.S. service firms grew last month at the fastest pace since August as new orders and sales grew, adding to evidence that the economy is picking up after a slow start to the year.

The Institute for Supply Management said Monday that its service-sector index rose to 55.2 from 53.1 in March. Any reading above 50 indicates expansion. The ISM is a trade group of purchasing executives.

The figures come after a healthy jobs report on Friday also fueled hopes for an improving economy. The government said employers added 288,000 jobs in April, the most in 2 ½ years, and the unemployment rate fell to 6.3 percent.

The jobs report wasn't all positive, however. The rate fell mostly because fewer people began looking for work. The government doesn't count people as unemployed unless they are actively searching for a job. And the jobs figures showed that wages were flat last month.

Still, the better services and hiring data represent a turnaround after the government said last week that the economy barely expanded in the first three months of the year. Harsh winter weather kept shoppers away from the malls and dragged down home and auto sales. But spending and hiring has rebounded as the weather has improved.

A measure of sales and production in the ISM report surged 7.5 points to 60.9 and a gauge of new orders jumped 4.8 points to 58.2. Both are the highest since August. The increase in new orders suggests business will continue growing in the coming months.

The report is "more evidence of growth reaccelerating after exaggerated weakness a couple of months ago," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.

The survey covers businesses that employ 90 percent of the workforce, including retail, construction, health care and financial services firms.

A gauge of employment declined, though remained above 50. That indicates that services firms are adding jobs, but more slowly.

The ISM report contributed to a turnaround on Wall Street. The Dow Jones industrial average had fallen about 80 points before the data was released, but was up by a point around noon.

Anthony Nieves, chairman of the ISM's services survey committee, said the healthier picture mostly reflects solid increases in consumer demand. But the better spring weather also helped. One survey respondent in the hotel and restaurant industry said that business picked up because of a "break in the weather."

Solid job creation has made Americans a bit more confident and more willing to spend. Consumer spending jumped in March by the most in 4 ½ years, as Americans bought more cars, clothes and furniture.

More spending contributed to widespread growth among the service industries tracked by the survey.

Fourteen of the eighteen industries expanded last month, including arts, entertainment and recreation; retail; construction; hotels and restaurants; shipping and warehousing; finance; and real estate. The industries that contracted were mining; health care; profession, scientific and technical services; and other services.

A separate report by the ISM last week showed that manufacturing also grew at a faster pace in April. And a measure of hiring jumped to its highest level since December.

The economy expanded at a paltry 0.1 percent annual rate in the first three months of the year. But analysts are much more optimistic about the April-June quarter. Economists at Bank of America Merrill Lynch on Friday boosted their forecast for second-quarter growth to 3.6 percent from 3.2 percent.


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Target's Chairman and CEO out in wake of breach

NEW YORK — Target's massive data breach has now cost the company's CEO his job.

Target announced Monday that Chairman, President and CEO Gregg Steinhafel is out nearly five months after the retailer disclosed the breach, which has hurt its reputation among customers and hammered its business.

Experts say his departure marks the first CEO of a major corporation to resign in the wake of a data breach and underscores how CEOS are now becoming more at risk in an era when such breaches have become common.

The nation's third-largest retailer said Steinhafel, a 35-year veteran of the company and CEO since 2008, has agreed to step down, effective immediately. He also resigned from the board of directors.

The departure suggests the company is trying to start with a clean slate as it wrestles with the fallout from hackers' theft of credit and debit card information on tens of millions of customers. The company's sales, profit and stock price have all suffered since the breach was disclosed.

A company spokeswoman declined to give specifics on when the decision was reached. But in a statement issued Monday, the board said that that after extensive discussions with Steinhafel, they both "have decided it is the right time for new leadership at Target."

The company's stock fell more than 3 percent Monday morning.

Target, based in Minneapolis, said Chief Financial Officer John Mulligan has been appointed interim president and CEO. Roxanne S. Austin, a member of Target's board, has been named as interim nonexecutive chair of the board. Both will serve in those roles until permanent replacements are named.

Steinhafel will serve in an advisory capacity during the transition. Jim Johnson remains lead independent director on the board.

"He was the face of the public breach. The company struggled to recover from it," said Cynthia Larose, chair of the privacy and security practice at the law firm Mintz Levin. "It's a new era for boards to take a proactive role in understanding what the risks are."

Steinhafel's tenure has been tested with many challenges, from a weak economy to a proxy fight. The company, known for its cheap chic clothing and home decor, has seen uneven sales since the recession ended and has battled a perception that its prices aren't as low as its rivals.

Under Steinhafel's leadership, the company has won kudos for expanding into fresh groceries and offered a 5 percent discount to customers who use its branded debit and credit cards. In 2009, he successfully defended the company against a proxy fight against activist hedge fund manager William Ackman, who was pushing his own slate of candidates to the board.

But the company recently has been faced with fiercer competition from Amazon.com and Wal-Mart Stores Inc. Recently, difficulties with expansion in Canada, Target's first foray outside the U.S., has hurt profits. But the breach was the biggest black eye on Steinhafel's tenure.

"Ultimately, too much rained down on Gregg Steinhafel," said Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors. "There was no way he could escape the black vortex of news."

In March, Target said in it annual report that the breach has spawned dozens of legal actions and said it can't estimate how big the financial tab will be. It also acknowledged separately that security software picked up on suspicious activity after the cyber attack was launched, but the company decided not to take immediate action because it believed it did not warrant immediate follow-up.

Target's response since disclosing the breach has included free credit monitoring for affected customers and and overhaul of security systems.

"The last several months have tested Target in unprecedented ways," Steinhafel wrote in a letter to the board that was made available to The Associated Press. "From the beginning, I have been committed to ensuring Target emerges from the data breach a better company, more focused than ever on delivering for our guests."

The board said it has hired consultant Korn/Ferry International to search for a new CEO.

Steinhafel's departure comes two months after the company announced that Chief Information Officer Beth Jacob resigned. Last week, Target named Bob DeRodes, who has 40 years of experience in information technology, as its new chief information officer.

Target said it is continuing its search for a chief information security officer and a chief compliance officer.

Target also said last week that MasterCard Inc. will provide its branded credit and debit cards with a more secure chip-and-PIN technology next year. That will make Target the first major U.S. retailer to have store cards with this technology.

Steinhafel has faced increasing pressure since it was revealed on Dec. 19 that a data breach compromised 40 million credit and debit card accounts between Nov. 27 and Dec. 15. Then on Jan. 10, the company said hackers also stole personal information — including names, phone numbers as well as email and mailing addresses — from as many as 70 million customers.

The company's board has been meeting with Steinhafel monthly instead of quarterly to oversee Target's response to the breach.

When the final tally is in, Target's breach may eclipse the biggest known data breach at a retailer, one disclosed in 2007 at the parent company of TJ Maxx that affected 90 million records.

Target reported in February that its fourth-quarter profit fell 46 percent on a revenue decline of 5.3 percent as the breach scared off customers.

Target's sales have been recovering as more time passes, but it expects business to be muted for some time. It issued a profit outlook for the current quarter and full year that missed Wall Street estimates because it faces hefty costs related to the breach.

Target's shares have been volatile and are down 2.5 percent since the breach was disclosed. Shares fell $1.87 to $60.15 in late morning trading.


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Worries over China, Ukraine weigh on markets

FRANKFURT, Germany — Worries over the crisis in Ukraine and a disappointing Chinese manufacturing survey kept global markets in check Monday despite some more upbeat U.S. economic data.

The latest Ukraine-related tensions arose as Ukrainian troops fought pitched gunbattles with a pro-Russia militia occupying an eastern city and the government sent an elite national guard unit to re-establish control over the southern port city of Odessa.

Worries over the Chinese economy, the world's No. 2, also weighed on markets. A report from HSBC showing Chinese factory activity fell short of expectations stoked fears that the slowdown in the world's second biggest economy is entrenched.

"Financial markets begin the week, clouded by concerns over the situation in Ukraine, and a slightly deeper-than-previously-estimated contraction in China's manufacturing sector," said Jennifer Lee, an analyst at BMO Capital Markets.

A solid performance on Wall Street following news that U.S. service firms grew more quickly last month helped European markets trim earlier losses. The Institute for Supply Management said its service-sector index rose to 55.2 in April from 53.1 in March. Any reading above 50 indicates expansion.

In Europe, Germany's DAX closed down 0.3 percent at 9,529.50 while France's CAC 40 eked out a modest 0.1 percent gain to end at 4,462.69. British stock markets were closed for a public holiday.

In the U.S., the Dow Jones industrial average was down 0.1 percent at 16,498 while the broader S&P 500 index also fell 0.1 percent to 1,880.

Earlier in Asia, shares fell amid pessimism over China's manufacturing sector, which offset last Friday's positive U.S. jobs data for April.

Hong Kong's Hang Seng fell 1.3 percent to close at 21,976.33 while the Shanghai Composite in mainland China rallied in the final minutes of trading to finish 0.1 percent higher at 2,027.35.

Trading elsewhere was fairly flat, with the euro steady at $1.3879 and the dollar 0.1 percent lower at 102.09 yen.

____

Chan contributed from Hong Kong.


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Insurance company purchases Maine news building

BANGOR, Maine — An insurance company has announced its purchase of the Bangor Publishing Company building in the Maine city of Bangor.

Cross Insurance, a subsidiary of Cross Financial Corp., announced Monday it has purchased the building on Main Street. The building has been the home of the Bangor Daily News for 60 years.

The insurance company says it will share the building with the newspaper until the publisher finds a new space. Seventy-five insurance employees are planned to move into the facility.

The Bangor Daily News, established in 1889, has been located on Main Street since 1954. The sales price has not been disclosed. The 63,000-square-foot building housed the newspaper's presses until the early 1990s.


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Mass. gas prices remain unchanged from last week

BOSTON — After several weeks of increases, Massachusetts gas prices have stabilized.

AAA Southern New England reports that a gallon of self-serve regular remains at $3.68, unchanged from a week ago.

That price is a penny higher than the national average and 16 cents higher than a month ago. It's is also 26 cents higher per gallon that at the same time a year ago.

AAA found self-serve regular selling for as low as $3.54 per gallon and for as high as $3.79.


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AP IMPACT: Deadly side effect to fracking boom

CLARKSBURG, W.Va. — Booming production of oil and natural gas has exacted a little-known price on some of the nation's roads, contributing to a spike in traffic fatalities in states where many streets and highways are choked with large trucks and heavy drilling equipment.

An Associated Press analysis of traffic deaths and U.S. census data in six drilling states shows that in some places, fatalities have more than quadrupled since 2004 — a period when most American roads have become much safer even as the population has grown.

"We are just so swamped," said Sheriff Dwayne Villanueva of Karnes County, Texas, where authorities have been overwhelmed by the surge in serious accidents.

The industry acknowledges the problem, and traffic agencies and oil companies say they are taking steps to improve safety. But no one imagines that the risks will be eliminated quickly or easily.

"I don't see it slowing down anytime soon," Villanueva said.

The energy boom, fueled largely by new drilling technology, has created badly needed jobs, lifted local economies and drawn global manufacturers back to the United States. But the traffic accidents have devastated families: two young boys crushed to death last year by a tanker truck in West Virginia; a Pennsylvania father killed by another tanker in 2011; a 19-year old Texas man fatally injured in 2012 after colliding with a drilling truck on his way to work. A month later, on the same road, three retired teachers died in another collision with a truck.

Not all of the crashes involved trucks from drilling projects, and the accidents have been blamed on both ordinary motorists and heavy equipment drivers. But the frenzy of drilling activity contributes heavily to the flood of traffic of all kinds that has overwhelmed many communities.

Deadly crashes are "recognized as one of the key risk areas of the business," said Marvin Odum, who runs Royal Dutch Shell's exploration operations in the Americas.

Crashes often increase when the volume of traffic goes up, whether because of an improving economy, a new shopping mall or more people moving into the area. Still, the number of traffic fatalities in some regions has climbed far faster than the population or the number of miles driven.

In North Dakota drilling counties, the population has soared 43 percent over the last decade, while traffic fatalities increased 350 percent. Roads in those counties were nearly twice as deadly per mile driven than the rest of the state. In one Texas drilling district, drivers were 2.5 times more likely to die in a fatal crash per mile driven compared with the statewide average.

This boom is different from those of the past because of the hydraulic-fracturing process, which extracts oil and gas by injecting high-pressure mixtures of water, sand or gravel and chemicals. It requires 2,300 to 4,000 truck trips per well to deliver those fluids. Older drilling techniques needed one-third to one-half as many trips.

Another factor is the speed of development. Drilling activity often ramps up too fast for communities to build better roads, install more traffic signals or hire extra police officers to help direct the flow of cars and trucks.

Last year, a truck carrying drilling water in Clarksburg, W.Va., overturned onto a car carrying a mother and her two boys. Both children, 7-year-old Nicholas Mazzei-Saum and 8-year-old Alexander, were killed.

"We buried them in the same casket," recalled their father, William Saum. He said his wife, Lucretia Mazzei, has been hospitalized four times over the last year for depression.

Traffic fatalities in West Virginia's most heavily drilled counties, including where the Mazzei-Saum boys were killed, rose 42 percent in 2013. Traffic deaths in the rest of the state declined 8 percent.

The average rate of deaths per 100,000 people — a key mortality measurement that accounts for population growth — in North Dakota drilling areas climbed 148 percent on average from 2009 to 2013, compared with the average of the previous five years, the AP found. In the rest of the state, deaths per 100,000 people fell 1 percent over the same period.

Traffic fatalities in Pennsylvania drilling counties rose 4 percent over that time frame, while in the rest of the state they fell 19 percent. New Mexico's traffic fatalities fell 29 percent, except in drilling counties, where they only fell 5 percent.

In 21 Texas counties where drilling has recently expanded, deaths per 100,000 people are up an average of 18 percent. Across the rest of Texas, they are down by 20 percent.

For Villanueva, that means his county now has accidents serious enough to require air transport of victims three or four times each week, compared with only a few times a month before drilling operations took off.

In two Texas drilling regions, an average of 100 more people were killed in vehicle accidents in each of the last two years compared with before the boom.

When oil and gas are found, changes come fast. Drillers scramble to acquire leases and get the oil and gas flowing as soon as possible. Local service companies quickly marshal trucks and drivers to earn as much new business as they can while the boom lasts.

Counties and regions going through drilling booms simply cannot keep up. A weigh station stands on U.S. Route 2 in Williston, North Dakota, the heart of drilling country, but traffic on the highway gets backed up if the station stays open for 15 minutes, said Alan Dybing, a research fellow at North Dakota State University's transportation institute. So it soon has to close, letting streams of unchecked trucks pass through.

Some experts say regulatory loopholes make things even worse. Federal rules limit the amount of time most truckers can stay on the road, but the rules are less stringent for drivers in the oil and gas industry.

"These exemptions make Swiss cheese out of safety regulations," said Jackie Gillan, president of Advocates for Highway and Auto Safety.

Every truck accident "is a tragedy and deserves serious attention," said Steve Everley of the industry group Energy in Depth. He said oil and gas drillers and their suppliers have been working to reduce traffic and accidents by adopting safety programs, recycling more drilling water and building more pipelines to transport water.

Vehicle crashes are the single biggest cause of fatalities to oil and gas workers, according to a study by the National Institute for Occupational Safety and Health.

Truck drivers aren't the only ones getting blamed. In many cases, accident investigators found that motorists got impatient while following big trucks and took risks that led to accidents, such as passing on hills or curves, according to Robert Barnes, safety director for Pennsylvania's Bradford County.

Some states are working to reverse the trend, and there's at least one drilling region that appears to be getting safer.

In North Dakota, turning and climbing lanes are being added to give drivers a safe way to pass, and officials are planning to widen a stretch of U.S. Route 85. The Pennsylvania and Texas transportation departments have launched safe-driving campaigns.

Colorado's Weld County, which lodged a record number of drilling permits last year but saw traffic fatalities fall to 30 from 39, to its lowest level in 10 years. Capt. Rocco Domenico of the Colorado State Patrol says the county has been the focus of a long-term safety campaign, and drilling there isn't as concentrated or as intense as it is in other states.

On the day his sons were killed, William Saum's wife had taken the boys to the YMCA to register for swimming and karate classes. The truck didn't stop at the stop sign, tried to make a turn and flipped onto the family car. Police issued two traffic tickets but filed no criminal charges.

Saum and his wife waited until she was 40 to have children. Now she's 49, he said, and "it's not like we can have any more."

Asked what he thinks of the drilling boom, he paused.

"I guess," Saum said, "it's good for the people who are making the money."

___

Fahey reported from New York.


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Stocks waver as US service sector improves

NEW YORK — Stocks are little changed in midday trading Monday as investors weigh an improving outlook for the U.S. economy against a report that showed Chinese manufacturing contracted for a fourth straight month in April.

KEEPING SCORE: The Standard & Poor's 500 index rose a point, or 0.1 percent, to 1,881 as of 12:14 p.m. Eastern time. The Dow Jones industrial was flat at 16,512. The Nasdaq composite rose three points, or 0.1 percent, to 4,127.

SERVICE GROWTH: U.S. service firms grew more quickly last month as sales and new orders rose, adding to other evidence that the economy is picking up after a slow start to the year. The Institute for Supply Management says its service-sector index rose to 55.2 in April from 53.1 in March. Any reading above 50 indicates expansion.

DRUG STORE SALES: Walgreen rose $1.04, or 1.5 percent, to $69.92 after the company reported revenue from established drugstores jumped 7.6 percent last month, topping analysts' expectations. Sales were helped by a later Easter holiday.

CHINA SLOWDOWN: China's manufacturing contracted in April, but the pace of decline was less severe, suggesting the downturn in the world's No. 2 economy is bottoming out. HSBC's purchasing managers' index released Monday ticked up to 48.1 from 48.0 in March on a 100-point scale. Numbers above 50 indicate expansion.

THE QUOTE: The S&P 500 is trading close to its all-time closing high of 1,890 set April 2 and the Dow is also just below its record close of 16,580, set last week. Stocks may struggle to push higher in the immediate future amid concern about the ongoing tensions between Russia and Ukraine and against a backdrop of faltering growth overseas, said Jim Russell, regional investment director at US Bank.

"We're at very high levels relative to history," Russell said. "And we're not at all amazed, or disappointed, that a little bit of a minor pullback could be at hand."

BOND HIT: JPMorgan slumped $1, or 1.8 percent, to $54.48 after the bank said late Friday in a quarterly filing that it expects revenue from its bond and stock market unit to be down about 20 percent in the second quarter in a "continued challenging environment." The bank's first-quarter earnings were crimped by lower revenues at its bond trading business.

WEAK DRUGS: Pfizer fell 71 cents, or 1.8 percent, to $30.04 after the drug company said Monday that its first-quarter profit dropped 15 percent despite sharp cost-cutting. The earnings decline reflected competition from cheaper generic drugs. Pfizer has been trying since January to get British rival AstraZeneca to discuss its bid to buy the company, but AstraZeneca continues to rebuff Pfizer.

POWER MOVE: Utilities companies rose the most in the S&P 500 index. The utility sector has risen 12.5 percent, making it the best performing industry group in the S&P 500 this year, as investors favor stable companies that pay big dividends.

BONDS AND COMMODITIES: Bond prices fell. The yield on the 10-year Treasury note edged up to 2.61 percent from 2.59 percent on Friday. The yield is close to its lowest of the year and has fallen from 3 percent at the start of January. The price of oil fell 33 cents, or 0.3 percent, to $99.45 a barrel.


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1st US MERS patient could leave hospital soon

MUNSTER, Ind. — Health officials said Monday they expect the first patient in the United States diagnosed with a mysterious virus from the Middle East to be released soon from an Indiana hospital, though he could continue to be isolated at home.

The man has been hospitalized at a Munster hospital since April 28. Officials said he fell ill with Middle East Respiratory Syndrome, or MERS, after flying to the U.S. last month from Saudi Arabia, where he is a health care worker.

Indiana State Department of Health Commissioner William VanNess II said during a news conference with officials from the hospital and Centers for Disease Control and Prevention Monday that no health workers or family members who've had contact with the patient have tested positive for the virus. The virus has an incubation period of two to 14 days.

About 50 hospital employees had contact with the patient before he was placed in isolation, said Alan Kumar, chief medical information officer at Community Hospital.

The man flew from Riyadh, Saudi Arabia to the United States on April 24, with a stop in London. He landed in Chicago and took a bus to Indiana, health officials said.

MERS belongs to the coronavirus family that includes the common cold and SARS, or severe acute respiratory syndrome, which caused some 800 deaths globally in 2003.

Saudi Arabia has been at the center of a Middle East outbreak of MERS that began two years ago. The virus has spread among health care workers, most notably at four facilities in that county last spring.

Officials said Monday the patient did not recall working directly with a MERS patient in Riyadh but said the hospital where he worked did have some MERS cases.

Overall, at least 400 people have had the respiratory illness, and more than 100 people have died. All had ties to the Middle East region or to people who traveled there.

Officials say it isn't highly contagious, but there is no cure.

The MERS virus has been found in camels, but officials don't know how it is spreading to humans. It can spread from person to person, but officials believe that happens only after close contact. Not all those exposed to the virus become ill.


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Maine considers rule change for processing lobster

PORTLAND, Maine — The Maine Department of Marine Resources is considering a change that would allow licensed lobster processors to process lobster from the shell without holding a separate lobster meat permit.

The agency said in a statement that the change would mean lobster processor license holders would not have to purchase the $159 annual lobster meat permit. The state also said the change would allow the processors to streamline operations.

The state had 15 lobster processing license holders last year and has issued seven licenses this year. The license allows the holders to process lobsters in the shell, but not out.

The state is accepting comments about the proposal until June 6. Comments can be mailed to dmr.rulemaking@maine.gov.


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UN: Spread of polio now a world health emergency

LONDON — For the first time ever, the World Health Organization on Monday declared the spread of polio an international public health emergency that could grow in the next few months and unravel the nearly three-decade effort to eradicate the crippling disease.

The agency described current polio outbreaks across at least 10 countries in Asia, Africa and the Middle East as an "extraordinary event" that required a coordinated international response. It identified Pakistan, Syria and Cameroon as having allowed the virus to spread beyond their borders, and recommended that those three governments require citizens to obtain a certificate proving they have been vaccinated for polio before traveling abroad.

"Until it is eradicated, polio will continue to spread internationally, find and paralyze susceptible kids," Dr. Bruce Aylward, who leads WHO's polio efforts, said during a press briefing.

Critics, however, questioned whether Monday's announcement would make much of a difference, given the limits faced by governments confronting not only polio but armed insurrection and widespread poverty.

"What happens when you continue whipping a horse to go ever faster, no matter how rapidly he is already running?" said Dr. Donald A. Henderson, who led the WHO's initiative to get rid of smallpox, the only human disease ever to have been eradicated.

The WHO has never before issued an international alert on polio, a disease that usually strikes children under 5 and is most often spread through infected water. There is no specific cure, but several vaccines exist.

Experts are particularly concerned that polio is re-emerging in countries previously free of the disease, such as Syria, Somalia and Iraq, where civil war or unrest now complicates efforts to contain the virus. It is happening during the traditionally low season for the spread of polio, leaving experts worried that cases could spike as the weather becomes warmer and wetter in the coming months across the northern hemisphere.

The vast majority of new cases are in Pakistan, a country which an independent monitoring board set up by the WHO has called "a powder keg that could ignite widespread polio transmission."

Dozens of polio workers have been killed over the last two years in Pakistan, where U.S. forces located Osama bin Laden using information gained in part under the guise of polio vaccinations. A Pakistani doctor, Shakil Afridi, is currently jailed for his role in the CIA operation that uncovered the al-Qaida leader's hideout. Afridi was involved in a vaccination ruse that led to bin Laden's death and eroded trust in polio programs among many Pakistanis.

At the end of April, there were 68 confirmed polio cases, compared with just 24 at the same time last year. In 2013, polio reappeared in Syria, sparking fears the civil war there could ignite a wider outbreak as refugees flee to other countries across the region. The virus has also been identified in the sewage system in Israel, the West Bank and Gaza, although no cases have been spotted.

In February, the WHO found that polio had also returned to Iraq, where it spread from neighboring Syria. It is also circulating in Afghanistan (where it spread from Pakistan) and Equatorial Guinea (from neighboring Cameroon) as well as Nigeria, Ethiopia, Somalia and Kenya.

Officials also worry countries torn by conflict, such as Ukraine, Sudan and the Central African Republic, are rife for polio reinfection.

Some critics say it may even be time to accept that polio may not be eradicated, since the deadline to wipe out the disease has already been missed several times. The ongoing effort costs about $1 billion a year.

"For the past two years, problems have steadily, and now rapidly mounted," Henderson said in an email. "It is becoming apparent that there are too many problems (for the polio eradication effort) to overcome, however many resources are assigned."

Henderson and others have suggested the extraordinary efforts needed for polio eradication might be better spent on other health programs, including routine vaccination programs for childhood diseases. But he conceded that transitioning to a control program would be difficult. "If not eradication, how does one accomplish a 'soft landing' which could sustain the global program on immunization?" Henderson said.

Aylward said the WHO and its partners, including the U.S. Centers for Disease Control and Prevention, aren't yet considering pushing back their latest deadline to eradicate polio by 2018.

CDC Director Dr. Tom Frieden said the reemergence and spread of polio out of Pakistan, Cameroon and Syria pose "a serious threat to our ability to eradicate polio."

"Conflicts in many areas where polio is circulating are hampering efforts to vaccinate but success remains within reach," Frieden said.

Still, the independent board monitoring the progress being made on polio has called for overhauling the program.

"Few involved in (polio eradication) can give a clear account of how decisions are made," concluded a recent report by the group. "If a billion-dollar global business missed its major goal several times, it would be inconceivable that it would not revisit and revise its organizational and decision-making structure."

___

AP Medical Writer Mike Stobbe contributed to this report from New York.


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