Sunday, April 28, 2013

CA-BUSINESS Summary

Still stuck on central-bank life support

LONDON (Reuters) - Five years after the onset of the global financial crisis, the world economy is in such a chronic condition that the European Central Bank might cut interest rates this week and the Federal Reserve is likely to indicate no let-up in the stimulus it is providing the U.S. economy. With the euro zone economy in recession, momentum is building for the ECB to lower interest rates for the first time since July 2012, according to senior sources involved in the deliberations.

Deutsche Bank has "zero tolerance" for tax evaders: CEO

FRANKFURT (Reuters) - Deutsche Bank has "zero tolerance" for customers seeking to evade taxes by holding assets in foreign accounts managed by the lender, Co-Chief Executive Juergen Fitschen told German radio broadcaster Deutschlandfunk. "Tax evasion is a crime," Fitschen said in an interview. "It's unacceptable."

Japan's ANA takes its first 787 back into the air since grounding

TOKYO (Reuters) - All Nippon Airways , the Japanese launch customer for Boeing Co's 787, flew its first Dreamliner in more than three months on Sunday to test reinforced batteries installed by the U.S. aircraft maker. The ANA flight was the second by an airline since aviation regulators on Friday gave permission for 787 operations to restart after batteries on two of them overheated in mid January. One was on an ANA plane in Japan and another on a Japan Airlines jet parked at Boston's Logan airport.

U.S. Steel locks out workers at Lake Erie in Canada: union

TORONTO (Reuters) - United States Steel Corp has locked out all unionized employees at its Lake Erie works in Canada, the United Steelworkers union said on Sunday. The move, part of a contract dispute, affects nearly 1,000 workers at the Nanticoke, Ontario plant, which produced about 10 percent of U.S. Steel's raw steel output in 2012.

Abu Dhabi plans financial free zone, may resemble Dubai

ABU DHABI (Reuters) - The oil-rich emirate of Abu Dhabi is putting finishing touches to plans to establish a financial free zone that could resemble, and therefore compete with, the Dubai International Financial Centre, sources familiar with the matter said. A federal decree was passed by the United Arab Emirates' President Sheikh Khalifa bin Zayed al-Nahayan in February to create the area, known as the Abu Dhabi World Financial Market, on Al Maryah island, the sources told Reuters.

Dell investors may still gain after Blackstone pullout: Barron's

NEW YORK (Reuters) - Dell shareholders could still stand to profit even after Blackstone Group LP withdrew its bid to buy the world's No. 3 personal computer maker more than a week ago, Barron's said on Sunday. On April 19, Blackstone's move knocked Dell shares to a two-month low and narrowed the fight for Dell between activist investor Carl Icahn and the company's founder Michael Dell and Silver Lake Partners, the newspaper said.

Analysis: China's 4G bonanza to shake up mobile gear vendor market

STOCKHOLM/PARIS (Reuters) - Chinese telecom operators will start awarding contracts for super-fast mobile networks this year, kicking off the third wave of a global investment cycle that is reshaping the competitive landscape among telecom equipment makers. China, the world's biggest mobile market with 1.1 billion subscribers, is likely to further alter the picture at the expense of European suppliers by giving a huge boost to Huawei and its smaller Chinese rival ZTE .

Italian court rejects Nomura seizure order: sources

SIENA, Italy (Reuters) - An Italian judge has rejected an order to seize around 1.8 billion euros ($2.3 billion) of assets from Nomura as part of a probe into suspected fraud involving troubled lender Monte dei Paschi di Siena , legal sources said on Saturday. Assets worth 140 million euros that were already seized from the Japanese bank have been released under the judge's ruling, which was made on Friday, the judicial source said.

Vodafone investors want bigger bid or full takeover by Verizon

LONDON (Reuters) - Six major Vodafone investors said $100 billion was not enough for the British company's stake in its U.S. joint venture with Verizon Communications , and urged the latter to come up with an offer of at least $120 billion. Their comments followed a Reuters report on Wednesday that Verizon had hired advisers to prepare a possible $100 billion bid to buy Vodafone's 45 percent stake in their Verizon Wireless joint venture, likely to be structured as a roughly 50:50 cash and stock bid.

Renault hopes to have approval for Chinese plant by summer: CEO

PARIS (Reuters) - Renault-Nissan hopes to receive final approval from Beijing by the summer to build its first Renault plant in China, Chief Executive Carlos Ghosn said on Saturday. Ghosn had said last month he expected final government approval for the plant by the end of the year.

Source: http://news.yahoo.com/ca-business-summary-012012257.html

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Two police officers shot as Italian government sworn in

ROME (Reuters) - Two police officers were shot and wounded outside the Italian prime minister's office on Sunday as Enrico Letta's new government was being sworn in around a kilometer (mile) away at the president's palace, police and witnesses said.

One man, described by witnesses as well dressed, was arrested at the scene of the shooting where a crowd was waiting for Letta to arrive but it was initially unclear whether the attack was linked to the launch of the new government.

"We still have to understand who he is. He's been caught," Antonio Catricala, a cabinet undersecretary in the former government told reporters.

A police official told Reuters that the man was from the southern region of Calabria and having fired several shots at the two police on duty outside the prime minister's office, he shouted "shoot me, shoot me" to other police nearby.

Letta and his new cabinet were due to come to the prime minister's office to accept a transfer of power from the outgoing government of Mario Monti at 1 p.m. (7:00 a.m. EDT).

One of the officers was shot in the neck and was in a serious condition, a police official said. Another was hit in the leg and was less seriously hurt. Italian media said a passer-by had also been injured but not seriously.

Five or six shots were fired and police had found five spent shells from a small caliber weapon, another official said.

Letta, 46, the moderate deputy head of the Democratic Party (PD), on Saturday ended two months of political stalemate since February's inconclusive election when he brought together former political rivals in a broad coalition government.

Letta's ministers stepped forward one by one to swear allegiance to the republic before President Giorgio Napolitano, who personally picked Letta as prime minister and had a central role in the choice of his cabinet team.

(Reporting by Gavin Jones, Antonella Cinelli, Roberto Landucci; Editing by James Mackenzie and Mark Heinrich)

Source: http://news.yahoo.com/italian-government-under-enrico-letta-sworn-094720376.html

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After near-stall in late 2012, US economy picks up

WASHINGTON (AP) ? After nearly stalling in late 2012, the American economy quickened its pace early this year despite deep government cutbacks. The strongest consumer spending in two years fueled a 2.5 percent annual growth rate in the January-March quarter.

The question is: Can it last?

Federal spending cuts, higher Social Security taxes and cautious businesses are likely to weigh on the economy in coming months.

Most economists say they think growth, as measured by the gross domestic product, is slowing in the April-June quarter to an annual rate of about 2 percent. Many predict growth will hover around that subpar level for the rest of the year.

Friday's Commerce Department report on GDP showed that consumers stepped up spending at an annual rate of 3.2 percent in the January-March quarter ? the biggest such jump since the end of 2010. Growth was also helped by businesses, which responded to the greater demand by rebuilding their stockpiles. And home construction rose further.

Government spending sank at a 4.1 percent annual rate, led by another deep cut in defense.

Sal Guatieri, senior economist at BMO Capital Markets, foresees more improvement in the second half of the year.

"The second-half acceleration will be supported by improved household finances, pent-up demand for autos and the ongoing recovery in housing," Guatieri says. "We are seeing significant housing-related consumer purchases in such areas as furniture."

GDP is the broadest gauge of the economy's health. It measures the total output of goods and services produced in the United States, from haircuts and hamburgers to airplanes and automobiles.

The government will provide two updated estimates of first-quarter growth based on more complete data. Whatever the revised data show, estimated first-quarter growth will likely remain far above the economy's scant 0.4 percent growth rate in the October-December quarter.

In a healthy economy, with an unemployment rate between 5 percent and 6 percent, GDP growth of 2.5 percent or 3 percent would be considered solid. But in today's still-struggling recovery, with unemployment at 7.6 percent, the economy needs faster growth to generate enough jobs to quickly shrink unemployment.

Since the Great Recession officially ended in June 2009, growth has remained weaker than usual after a severe downturn. In part, that's because the recession followed the worst financial crisis since Great Depression. The economy expanded just 2.4 percent in 2010, 1.8 percent in 2011 and 2.2 percent in 2012.

This had been expected to be the year when growth would finally reach a more robust 3 percent to 4 percent pace. But across-the-board government spending cuts, which began taking effect March 1, have made that unlikely. The cuts are forcing agencies to furlough workers, reducing spending on public projects and making businesses nervous about investing and hiring.

Unless Congress and the White House reach a deal to reverse them, the government spending cuts will continue through the end of the year and beyond.

Consumers' take-home pay has also fallen because President Barack Obama and Congress allowed a Social Security tax cut to expire. A person earning $50,000 a year has about $1,000 less to spend this year. A household with two high-paid workers has up to $4,500 less. Consumers' take-home pay is crucial to the economy because their spending drives roughly 70 percent of growth.

Americans appeared to shake off the tax increase at the start of the year. They spent more in January and February, powered by a stronger job market.

But hiring slowed sharply in March. And consumers spent less at retail businesses, a sign that many were starting to feel the effects of the Social Security tax increase. Economists expect spending to stay weak in the April-June quarter as consumers adjust to smaller paychecks.

Ben Herzon, an economist at Macroeconomics Advisers, thinks the tax increases could shave roughly 1 percentage point from growth this year. He expects the government spending cuts to reduce growth by a further 0.6 percentage point.

The drop in government spending cut growth in the January-March quarter by 0.8 percentage point.

Three-fourths of that decline came from defense spending. The past two quarterly declines in defense spending ? at a 22.1 percent annual pace in the fourth quarter and 11.5 percent in the first quarter ? have been the sharpest such back-to-back drops since the Korean War was winding down in the 1950s.

Many large developing countries are growing much faster than the United States. China's economy expanded 7.7 percent in the first three months of the year compared with a year earlier ? and that was a slowdown from its previous double-digit growth. Indonesia's economy grew 6.2 percent in 2012, India's 4.1 percent.

But among developed countries, the United States is still performing relatively well. Most of Europe is stuck in a second year of recession. Germany's economy grew just 0.7 percent in 2012. France's didn't grow at all. Italy's shrank 2.4 percent.

And in the January-March quarter, Britain grew at an annual rate of just 1.2 percent, less than half the estimated U.S. pace.

Last quarter, U.S. companies were more cautious about spending on computers, machinery and facilities, possibly because of the looming government spending cuts and higher taxes. Business investment grew at an annual rate of just 2.1 percent, down from a 13.2 percent rate in the fourth quarter.

That slowdown could hurt hiring in coming months. If companies buy fewer machines or build fewer stores or factories, they will likely fill fewer jobs.

U.S. income growth adjusted for inflation fell in the January-March quarter after a surge in the final three months of 2012. The fourth-quarter gain had reflected a rush to pay dividends and make bonus payments before higher tax rates took effect Jan. 1. Incomes were also held back last quarter by the higher Social Security tax. After paying taxes, incomes fell at an annual rate of 5.3 percent in the first quarter after surging 6.2 percent in the fourth quarter.

The jump in consumer spending, along with slower income growth, meant that the saving rate fell to 2.6 percent of after-tax income in the first quarter. That was down from 4.7 percent in the October-December quarter.

One area where consumers are feeling some relief is at the gas pump: The national average price for a gallon of gas has fallen by 29 cents since Feb. 27 to $3.50.

Cheaper gas helps the economy because it makes goods less expensive to transport and gives consumers more money to spend on other things. Over the course of a year, a decline of 10 cents a gallon translates to roughly $13 billion in savings at the pump.

Source: http://news.yahoo.com/near-stall-2012-us-economy-picks-195947310.html

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Two arrested as Bangladesh building toll rises to 325

By Serajul Quadir and Ruma Paul

DHAKA (Reuters) - Two factory bosses were arrested in Bangladesh on Saturday, 72 hours after the deadly collapse of a building where low-cost garments were made for Western brands, as the death toll rose to 325 and angry workers protested on the streets of the capital.

The owner of the eight-storey building that fell like a pack of cards around more than 3,000 workers was still on the run.

Police said two of his relatives had been detained to compel him to hand himself in, and an alert had gone out to airport and border authorities to prevent him from fleeing the country.

Officials said the Rana Plaza, on the outskirts of the capital, Dhaka, had been built illegally without the correct permits, and the workers were allowed in on Wednesday despite warnings the previous day that it was structurally unsafe.

The owner and managing director of the largest of the five factories in the complex, New Wave Style, surrendered to the country's garment industry association during the night and they were handed over to police.

The factory, which listed many European and North American retailers as its customers, occupied upper floors of the building that officials said had been added illegally.

"Everyone involved - including the designer, engineer, and builders - will be arrested for putting up this defective building," junior internal affairs minister Shamsul Huq told reporters.

Anger over the working conditions of Bangladesh's 3.6 million garment workers - most of whom are women - has grown since the disaster, triggering protests and clashes with police. Hundreds were on the streets again on Saturday morning, smashing and burning cars.

Miraculously, people were still being pulled alive from the rubble, seven in all since daybreak on Saturday.

Frantic efforts were under way to extract 15 people trapped under the mound of broken concrete who were being supplied with dried food, bottled water and oxygen.

About 2,500 people have been rescued, at least half of them injured, from the remains of the building in the commercial suburb of Savar, about 30 km (20 miles) from Dhaka.

WRONG PERMIT, ILLEGAL FLOORS

Emdadul Islam, chief engineer of the state-run Capital Development Authority (CDA), said on Friday the owner of the building had not received the proper building consent, obtaining a permit for a five-storey building from the local municipality, which did not have the authority to grant it.

"Only CDA can give such approval," he said. "We are trying to get the original design from the municipality, but since the concerned official is in hiding we cannot get it readily."

Furthermore, another three storeys had been added illegally, he said. "Savar is not an industrial zone, and for that reason no factory can be housed in Rana Plaza," Islam told Reuters.

Dhaka District police chief Habibur Rahman identified the owner of the Rana Plaza building as Mohammed Sohel Rana, a leader of the ruling Awami League's youth front.

"People are asking for his head, which is quite natural. This time we are not going to spare anybody," said H.T. Imam, an adviser to the prime minister.

Wednesday's collapse was the third major industrial incident in five months in Bangladesh, the second-largest exporter of garments in the world. In November, a fire at the Tazreen Fashion factory on the outskirts of Dhaka killed 112 people.

Such incidents have raised serious questions about worker safety and low wages, and could taint the reputation of the poor South Asian country, which relies on garments for 80 percent of its exports.

Sixty percent of Bangladesh's garment exports go to Europe. The United States takes 23 percent and Canada takes 5 percent.

North American and European chains, including British retailer Primark and Canada's Loblaw, said they were supplied by factories in the Rana Plaza building.

(Writing by John Chalmers; Editing by Paul Tait)

Source: http://news.yahoo.com/two-arrested-bangladesh-building-toll-rises-325-043614507.html

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Leftist priests: Francis can fix church 'in ruins'

BUENOS AIRES, Argentina (AP) ? A new pope from Latin America who wants to build "a church for the poor" is stirring hopes among advocates of liberation theology, a movement of social activism that alarmed former popes by delving into leftist politics.

Pope Francis has what it takes to fix a church "in ruins" that has "lost its respect for what is sacred," prominent liberation theologian Leonardo Boff said Saturday.

"With this pope, a Jesuit and a pope from the Third World, we can breathe happiness," Boff said at a Buenos Aires book fair. "Pope Francis has both the vigor and tenderness that we need to create a new spiritual world."

The 74-year-old Brazilian theologian was pressured to remain silent by previous popes who tried to draw a hard line between socially active priests and leftist politics. As Argentina's leading cardinal before he became pope, Francis reinforced this line, suggesting in 2010 that reading the Gospel with a Marxist interpretation only gets priests in trouble.

But Boff says the label of a closed-minded conservative simply doesn't fit with Francis.

"Pope Francis comes with the perspective that many of us in Latin America share. In our churches we do not just discuss theological theories, like in European churches. Our churches work together to support universal causes, causes like human rights, from the perspective of the poor, the destiny of humanity that is suffering, services for people living on the margins."

The liberation theology movement, which seeks to free lives as well as souls, emerged in the 1960s and quickly spread, especially in Latin America. Priests and church laypeople became deeply involved in human rights and social struggles. Some were caught up in clashes between repressive governments and rebels, sometimes at the cost of their lives.

The movement's martyrs include El Salvador's Archbishop Oscar Romero, whose increasing criticism of his country's military-run government provoked his assassination as he was saying Mass in 1980. He was killed by thugs connected to the military hierarchy a day after he preached that "no soldier is obliged to obey an order that is contrary to the will of God." His killing presaged a civil war that killed nearly 90,000 over the next 12 years.

Romero's beatification cause languished under popes John Paul II and Benedict XVI due to their opposition to liberation theology, but he was put back on track to becoming a saint days after Francis became pope.

Scores of other liberation theologians were killed in the 1970s and 1980s. Six Jesuit teachers were slaughtered at their university in El Salvador in 1989. Other priests and lay workers were tortured and vanished in the prisons of Chile and Argentina. Some were shot to death while demanding land rights for the poor in Brazil. A handful went further and picked up arms, or died accompanying rebel columns as chaplains, such as American Jesuit James Carney, who died in Honduras in 1983.

While even John Paul embraced the "preferential option for the poor" at the heart of the movement, some church leaders were unhappy to see church intellectuals mixing doses of Marxism and class struggle into their analysis of the Gospel. It was a powerfully attractive mixture for idealistic Latin Americans who were raised in Catholic doctrine, educated by the region's army of Marxist-influenced teachers, and outraged by the hunger, inequality and bloody repression all around them.

John Paul and his chief theologian, Cardinal Joseph Ratzinger, drove some of the most ardent and experimental liberation theologians out of the priesthood, castigated some of those who remained, and ensured that the bishops and cardinals they promoted took a wary view of leftist social activism.

Yet much of the movement remained, practiced by thousands of grassroots "base communities" working out of local parishes across the hemisphere, nurtured by nuns, priests and a few bishops who put freedom from hunger, poverty and social injustice at the heart of the Church's spiritual mission.

Hundreds of advocates at a conference in Brazil last year declared themselves ready for a comeback.

"At times embers are hidden beneath the ashes," said the meeting's final declaration, which expressed hopes of stirring ablaze "a fire that lights other fires in the church and in society."

Boff and other advocates are thrilled that this new pope spent so much time ministering in the slums, and are inspired by his writings, which see no heresy in social action.

"The option for the poor comes from the first centuries of Christianity. It is the Gospel itself," said then-Cardinal Jorge Mario Bergoglio during a 2010 deposition in a human rights trial. He said that if he were to repeat "any of the sermons from the first fathers of the church, from the 2nd or 3rd century, about how the poor must be treated, they would say that mine would be Maoist or Trotskyite."

Msgr. Gregorio Rosa Chavez, the auxiliary bishop of San Salvador, said Romero and Francis have the same vision of the church. "When he says 'a church that is poor and for the poor,' that is what Monsignor Romero said so many times," he said.

Rosa Chavez said neither cardinal was among the most radical of churchmen.

"There are many theologies of liberation," he said. "The pope represents one of these currents, the most pastoral current, the current that combines action with teaching." He described Francis' version as "theologians on foot, who walk with the people and combine reflection with action," and contrasted them with "theologians of the desk, who are from university classrooms."

John Paul II himself embraced the term "liberation theology," but was also credited with inspiring resistance to the communist regime in his native Poland, and was allergic to socialist pieties.

For 30 years, the Vatican has been seeding Latin America, Africa and Asia with cardinals "who have tended to be, adverse, to put it kindly, to liberation theology," said Stacey Floyd-Thomas, a professor of ethics and society at Vanderbilt University Divinity School.

In Brazil, Sao Paulo Archbishop Odilo Scherer, widely considered a possible pope, told the Estado de S. Paulo newspaper last year that liberation theology "lost its reason of being because of its Marxist ideological underpinnings . which are incompatible with Christian theology."

"It had its merits by helping bring back into focus matters like social justice, international justice and the liberation of oppressed peoples. But these were always constant themes in the teachings of the Church," Scherer said.

In 1984, Ratzinger put Boff in Galileo's chair for a Vatican inquisition over his writings, eventually stripping him of his church functions and ordering him to spend a year in "obedient silence." Nearly a decade later, in 1993, the Vatican pressured him again, and he quit the Franciscan order.

Now Boff says Francis has brought a "new spring" to the global church.

"Josef Ratzinger. He was against the cause of the poor, liberation theology," Boff said. "But this is from last century. Now we are under a new Pope."

___

Associated Press Writers Michael Warren in Buenos Aires, Jenny Barchfield in Rio de Janeiro, Marcos Aleman in San Salvador and John Rice in Mexico City contributed to this report.

Source: http://news.yahoo.com/leftist-priests-francis-fix-church-ruins-213627659.html

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5 Tips for Buyers Who Want a Million-Dollar Home | AOL Real Estate


By Dolly Lenz

Called the "Queen of Real Estate" and even "Jaws" for her aggressively successful tactics, super broker Dolly Lenz (pictured in the inset above) has sold over $8.5 billion dollars in high-end properties, catering to clients like Barbra Streisand, Billy Joel and P. Diddy. Now she's revealing five tips to buying a million-dollar home.

In a Buyer's Market: Be Aggressive

In a buyer's market, sellers have fewer options. Buyers are scarce and, therefore, they have the upper hand in that they are better able to dictate terms. In this instance, buyers can be aggressive in their bidding and are free to probe how motivated a seller is to sell. In this environment, buyers should consider asking the seller to pick up certain closing costs, include furnishings as part of the deal, and even request seller financing.

In buyer's markets, sellers become very competitive with one another and buyers can use this to their advantage. Buyers should not be shy about using one seller against another and see which one will offer a better deal. This is especially advantageous in neighborhoods which have similar homes and buyers are indifferent about which property they prefer.

In a Seller's Market: Be Prepared

In a seller's market, multiple bids on the same property are common as inventory levels are low. Nothing gets a seller's attention more than a buyer who is both ready and able to consummate a deal. For this reason, potential buyers have to be prepared before they start bidding. Obviously, cash is king and those paying cash are in a commanding position to seal the deal with a seller. But for most buyers, financing is a necessary element to a purchase, and those bidding with commitment in hand stand a much better chance of attracting a seller's attention than those without.

Demonstrating an ability to act quickly is also desirable to sellers. This obligates a buyer to be responsive to a seller's communications in real time and be prepared with pre-approved financing, a closing attorney and a flexible closing date. Most people think that the bidder offering the highest price will get the deal but often that is not the case.

Savvy sellers evaluate all the terms of a deal as a package and price is only one factor. For example, most sellers will find a $1 million offer with a commitment letter for 70 percent financing superior to a higher offer of $1,060,000 with a contingency of 80 percent financing, unless the buyer with the higher offer can demonstrate likelihood that they will obtain the necessary financing.

Beware the Onerous Mortgage Contingency

In negotiating a deal, both buyers and sellers assume risk. Just as you are taking a risk by agreeing to buy, a seller takes on risk by agreeing to sell. Naturally, a seller wants a deal with zero contingencies, to eliminate the likelihood of the buyer backing out, while a buyer wants a deal with as many contingencies as possible, should his circumstances change.

The mortgage contingency is a major contract issue for both buyer and seller, and as a buyer you want to obtain terms that are favorable to you. Failure to do this properly could jeopardize your contract deposit. The key element is to establish a maximum amount you are going to finance, and the higher the percentage you can get in the contract, the better off you'll be. The seller will try to negotiate a lower percentage, but the key is to establish a number that you are comfortable with.

See more tips to buy a million-dollar home at CNBC.

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Source: http://realestate.aol.com/blog/2013/04/26/buying-million-dollar-homes/

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