G20 pledges bank support, eyes bolder euro fund

WASHINGTON (Reuters) - The world's major economies on Thursday pledged to prevent Europe's debt crisis from undermining banks and financial markets, and said the euro zone's rescue fund could be bolstered.

Under pressure from investors to show action, finance ministers and central bankers from the Group of 20 economies said they would take all steps needed to calm the global financial system.

"We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required," the group, including the United States and China, said in a communique after a dinner meeting on Thursday.

Shares of several European banks have tumbled and funding costs have risen as investors worried about bank exposure to debt issued by Greece and other debt-heavy European countries.

World stocks slumped on Thursday to their lowest level in 13 months, hurt by the risk of a new U.S. recession and weaker economic data from China as well as Europe's debt problems.

But the pledge of action from the G2O gave a lift to the euro in early trade on Friday, while softening stock losses in Asia. U.S. stock futures pointed to a higher open in New York.

In a sign the euro zone was working on adding to the potency of its 440 billion-euro financial rescue fund, the G20 statement said the bloc's members would implement "actions to increase the flexibility of the EFSF and to maximize its impact" by the group's next ministerial meeting in October.

No details were given of how the EFSF might be altered, although French Finance Minister Francois Baroin used the word "leverage" in comments to reporters.

The United States has previously proposed that Europe could leverage up the European Financial Stability Facility, giving it more clout to protect the euro zone and its banks.

A U.S. official, speaking after the G20 meeting, said the group showed a heightened sense of urgency but did not discuss a specific mechanism to leverage or expand the bailout fund. Initially, officials had not planned to issue a statement, but came out with a hurried communique after Thursday's big stock market sell-off.

A G20 source said the reference to the EFSF in the communique was left ambiguous to keep open the possibility of leveraging up the fund or using it to buy government debt on secondary markets.

European political leaders, especially in Germany, have opposed dedicating more money to offsetting what they see as the profligacy of highly indebted countries such as Greece, complicating discussions about fighting the financial crisis.

At the same time, tensions have flared within the European Central Bank over its role in buying debt of struggling euro zone countries. Euro zone officials have said leveraging the EFSF could run into big legal problems.

EUROPE UNDER PRESSURE

However, Europe has come under heavy pressure from the United States and other countries to take bolder steps.

Earlier on Thursday, U.S. Treasury Secretary Timothy Geithner voiced optimism that Europe would devote more of its own resources to backstop euro area governments and banks.

"I am very confident they're going to move in the direction of expanding (their) effective financial capacity," he said. "They're just trying to figure out how to get there in a way that is politically attractive."

Analysts said Thursday's statement was unlikely to inject much confidence into markets.

"We need to see concrete action involving coordinated monetary policy easing globally and a massive increase in the firing power of the EFSF or the ECB to buy bonds in indebted European countries," said Shane Oliver, head of investment strategy at AMP Capital in Sydney.

"Without any hard action, investors will quickly see through it and it won't provide any help."

The G20 talks came ahead of two days of meetings of the International Monetary Fund and World Bank which bring together finance officials from virtually every country in the world -- each with a stake in seeing Europe's crisis contained.

Earlier on Thursday, the leaders of seven big economies stressed the need to contain the debt crisis, and finance officials from the so-called BRICS countries, including heavyweights China, Brazil and India, said they would consider giving more funds to the International Monetary Fund to boost global stability.

But India said developing countries were not in a good position to bail out richer economies and the U.S. official said the G20 had not talked about emerging economies providing the IMF with more funds.

The euro area crisis, centered on a fiscal meltdown in Greece, has put a strain on the IMF's resources. With key economies teetering on the edge of recession, more countries could seek emergency loans, quickly depleting its capital.

Highlighting the growing role of the BRICS in the world, China's central bank chief, Zhou Xiaochuan, said major emerging markets should boost domestic demand to take up some of the slack caused by weakness in the United States and Europe.

But Zhou made no mention of repeated U.S. calls for Beijing to let its yuan currency rise faster.

In Frankfurt, a European Central Bank study warned the entire euro currency project was now in peril.

The study, perhaps the most stern warning about the euro's future from a central banker, was a parting shot from ECB chief economist Juergen Stark, who resigned this month after opposing the bank's purchases of troubled countries' bonds.

(Additional reporting by Daniel Flynn, Jan Strupczewski, Rachelle Younglai and Lesley Wroughton in Washington, Lionel Laurent and Julien Ponthus in Paris, Ross Finley in London, Lefteris Papadimas in Athens, Martin Santa in Frankfurt; Writing by William Schomberg and David Lawder; Editing by Neil Stempleman and Chizu Nomiyama)

Target's Blunder With Designer Continues

Target is a victim of its own success.

Elizabeth Olsen attends the Missoni For Target event, celebrating the Missoni for Target pop up store, in New York. Photo: Associated Press

The discounter drummed up so much hype around its exclusive, limited-time line by upscale Italian designer Missoni that its website crashed and was down most of the day on Sept. 13 when the collection was launched, angering customers. More than a week later, some shoppers who bought the Missoni for Target line are posting on social media websites Facebook and Twitter that they won't shop at Target again because their online orders are being delayed — or worse, canceled — by the retailer.
Brielle deMartino, 23, from Del Ray Beach, Fla., was so excited that she woke up at 6 a.m. on the launch day and spent $700 on Missoni clothes, a bike and plates. The next day, she got an email from Target that her online order was cancelled. Then, she spent hours on the phone with Target customer service representatives she describes as unapologetic.
"I have never been treated like this," says deMartino, who got the charges removed from her card after calling her bank and posted on Facebook and Twitter about the ordeal. "Instead of taking responsibility, they didn't care. I have always been pro-Target, but I don't want to give my money to a company like that again.'
Talk about having a bulls-eye on your back. Target became the discount industry's darling by making it cool to buy stylish clothes and trendy decorations at the same place you pick up toothpaste and paper towels. But recently, it has suffered from similar public relations nightmares as its rival Wal-Mart Stores Inc. Earlier this year, Target had its first union election in what is seen as a precursor to more labor disputes nationwide. Now, customers are blasting Target on websites like Twitter at a time when Americans worried about the economy are easily being influenced by what their friends say on social media websites.
"This was badly handled," said Robert Passikoff, president of Brand Keys Inc., a New York customer research firm that has an index that shows Target's image has taken a hit. "What was supposed to be engaging and delightful is now the opposite — disappointment."
Morgan O'Murray, a Target spokeswoman, said the company experienced unprecedented demand for the collection and is working on correcting problems.
"This demand impacted our Target.com site and affected the shipment and delivery of select guest orders," O'Murray said in a statement. "Providing an exceptional experience is incredibly important to Target, and we have a team dedicated to addressing those guests who have been affected."
The crash heard around retail

Photo: Associated Press

The Missoni collection was an attempt by Target to regain the cache it lost among the fashion-forward crowd after it began focusing on expanding its food business. Target is among a few retailers who have partnered with high-end designers that create exclusive lines they can offer for a limited time at deep discounts. The collections can spur demand by creating a sense of urgency to buy. Last year, Target scored big with a line created by Liberty of London, offering 300 items with the designer, which is known for its floral prints, and selling out of most of it in a couple of days.
The retailer tried to recreate that success with Missoni line, which featured stationery for $2.99 up to $599.99 patio furniture at a fraction of the cost of the designer's original works that can go for $595 to $1,500 and more. Target declined to comment say how much it spent on marketing, but it used social media websites and ads on TV and in Vogue magazine.
Target also opened a temporary store in Manhattan at the start of New York Fashion Week on Sept. 8. On the night of the store's opening, Target hosted a party attended by Missoni-clad celebrities like actress Elizabeth Olsen, the younger sister of the twin actresses Mary-Kate Olsen and Ashley Olsen. The temporary store, which spanned six blocks, was supposed to stay open three days, but closed after items sold out in six hours.
By Sept. 13, the day of the launch, Target said demand for Missoni items rivaled the frenzy on the day after Thanksgiving, which is typically the busiest shopping day of the year. More than 100 customers lined up at stores nationwide. Some locations sold out in a few hours.
Celebrities were even writing about the launch, or tweeting, on Twitter. Actress Busy Phillips, who plays Laura in ABC's "Cougar Town," tweeted: "Got the bike. Not the colorful one but still SO EXCITED." Actresses Jessica Alba and Jessica Simpson also were gushing about the line: "I dreamt about the Missoni 4 Target bike last night," Alba tweeted. Simpson replied, "I want that bike too!! So cute!"
The buzz turned to frustration for some shoppers. About two hours after the 6 a.m. launch, many on Target's website came face-to-face with Target's mascot bulldog and the disappointing news: "Woof! We are suddenly extremely popular. You may not be able to access our site momentarily due to unusually high traffic. Please stay here and we'll try to get you in as soon as we can!"
This happened throughout the day. Some who were patient got through. Those who weren't left the website disappointed.
Ben Rushlo, director of performance management at Keynote Systems Inc., which tracks websites' performance, said that he couldn't remember the last time a site stayed down most of the day. He said usually, a website slowly deteriorates throughout the day — with minor glitches becoming more prevalent — before crashing.
"It wasn't your normal meltdown," he said.
The Missoni mess gets messier
Even some customers who got through complained that items disappeared from their online shopping carts. Some were unable to checkout. Those who were able to buy breathed a sigh of relief, with some hocking their buys on eBay.com for more than double Target's prices.
But the celebration was short-lived for some. Twitter and Facebook are abuzz with customers complaining that they got emails from Target notifying them that their orders will be delayed or canceled altogether. The posts range from mild ("I'm waiting for orders and now get an email that some may not ship," to prickly ("Every time I see someone with Missoni for Target I get a little more mad.").
Megan Bonner, 26, from Memphis, Tenn., bragged on Twitter after ordering $300 worth of Missoni dresses and cardigans until the next day when she got emails telling her that her shipments would be delayed. Nervous that she wouldn't get the items at all, she bought some of them at a nearby Target. But now she worries she won't be refunded for the other merchandise.
"I feel violated. I feel taken advantage of," she said. "If I don't hear back from them in another week, I will call back. Maybe, I just won't go back anymore."
Target had planned to sell the line into October online and at all 1,700 U.S. stores. But many locations are sold out and the online pickings website are slim. Target had said it was replenishing merchandise, but that it would trickle in.
The debacle comes at a precarious time for Target. The chain, which has struggled to return to its pre-recession growth, is just beginning to benefit from its expanded grocery business and a 5 percent discount it gives shoppers who pay with a Target credit or debit card.
Target Corp., based in Minneapolis, had been posting disappointing revenue gains, but it had a 3.9 percent second-quarter increase in revenue at stores opened at least a year — a measure of a retailer's health. That compares with a 2 percent first-quarter gain.
Analysts disagree on whether Target's image can rebound from the snafu, which comes just months after a failed measure to unionize by employees at a Valley Stream, N.Y. spurred organizers to target stores nationwide.
C. Britt Beemer, chairman of America's Research Group said in order for Target to recover, it needs to placate angry customers by, say, offering $10 to $20 gift cards. "A lot of companies don't want to fix the problem," he said. "They feel it's better to let it go away. But the problem is that's a dangerous strategy."
Passikoff, with Brand Keys, says the damage is already done — and he can prove it. He said the negative publicity has pushed down Target's reading on the company's Loyalty Index, which measures brand reputation, among other things, to 109 from 119 in August. Brands should have at least a 116, Passikoff says, and anything under 100 signals "trouble."
But Brian Sozzi, a Wall Street Strategies analyst, says shoppers' discontent — much like the Missoni for Target line — is fleeting. "I think it is short-term anger," he said.

Texas prisons end special last meals in executions

HOUSTON (AP) — It's a tradition with roots that can be traced far back in history: Before being put to death, a condemned prisoner can choose his last meal.

Not so anymore in Texas.

Officials who oversee the country's busiest death chamber stopped the practice on Thursday after a prominent state senator complained about a hefty request from a man executed for his role in a notorious dragging death. Now, inmates get to eat only what the kitchen serves.

The controversy began after Lawrence Russell Brewer, who was executed on Wednesday for the hate crime slaying of James Byrd Jr. more than a decade ago, asked for two chicken fried steaks, a triple-meat bacon cheeseburger, fried okra, a pound of barbecue, three fajitas, a meat lover's pizza, a pint of ice cream and a slab of peanut butter fudge with crushed peanuts. Prison officials said Brewer didn't eat any of it.

"It is extremely inappropriate to give a person sentenced to death such a privilege," Sen. John Whitmire, chairman of the Senate Criminal Justice Committee, wrote in a letter Thursday to Brad Livingston, the executive director of the Texas Department of Criminal Justice.

Within hours, Livingston said the senator's concerns were valid and the practice of allowing death row offenders to choose their final meal was history.

"Effective immediately, no such accommodations will be made," Livingston said. "They will receive the same meal served to other offenders on the unit."

That had been the suggestion from Whitmire, who called the traditional request "ridiculous."

"It's long overdue," the Houston Democrat told The Associated Press. "This old boy last night, enough is enough. We're fixing to execute the guy and maybe it makes the system feel good about what they're fixing to do. Kind of hypocritical, you reckon?

"Mr. Byrd didn't get to choose his last meal. The whole deal is so illogical."

Brewer, a white supremacist gang member, was convicted of chaining Byrd, 49, to the back of a pickup truck and dragging him to his death along a bumpy road in a case shocked the nation for its brutality.

It was not immediately clear whether other states have made similar moves. Some limit the final meal cost — Florida's ceiling is $40, according to the Department of Corrections website, with food to be purchased locally. Others, like Texas, which never had a designated dollar limit, mandate meals be prison-made. Some states don't acknowledge final meals, and others will disclose the information only if the inmate agrees, said K. William Hayes, a Florida-based death penalty historian.

Some states require the meal within a specific time period, allow multiple "final" meals, restrict it to one or impose "a vast number of conditions," he said.

Historical references to a condemned person's last meal go as far back as ancient Greece, China and Rome, Hayes said. Some of it is apparently rooted in superstition about meals warding off possible haunting by condemned people once they are put to death.

The Death Penalty Information Center, a Washington-based anti-capital punishment organization that collects execution statistics, said it had no data on final meals.

Since Texas resumed carrying out executions in 1982, the state correction agency's practice has been to fill a condemned inmate's request as long as the items, or food similar to what was requested, were readily available from the prison kitchen supplies.

While extensive, Brewer's request was far from the largest or most bizarre among the 475 Texas inmates put to death.

On Tuesday, prisoner Cleve Foster's request included two fried chickens, French fries and a five-gallon bucket of peaches. He received a reprieve from the U.S. Supreme Court but none of his requested meal. He was on his way back to death row, at a prison about 45 miles east of Huntsville, at the time when his feast would have been served.

Last week, inmate Steven Woods' request included two pounds of bacon, a large four-meat pizza, four fried chicken breasts, two drinks each of Mountain Dew, Pepsi, root beer and sweet tea, two pints of ice cream, five chicken fried steaks, two hamburgers with bacon, fries and a dozen garlic bread sticks with marinara on the side. Two hours later, he was executed.

Years ago, a Texas inmate even requested dirt for his final meal.

Until 2003, the Texas prison system listed final meals of each prisoner as part of its death row website. That stopped at 313 final meals after officials said they received complaints from people who found it offensive.

A former inmate cook who made the last meals for prisoners at the Huntsville Unit, where Texas executions are carried out, wrote a cookbook several years ago after he was released. Among his recipes were Gallows Gravy, Rice Rigor Mortis and Old Sparky's Genuine Convict Chili, a nod to the electric chair that once served as the execution method. The book was called "Meals to Die For."