Worst Yet to Come as Crisis Rescue Cash Ebbs, Deutsche Bank Says - Bloomberg

The worst may be yet to come in the global financial crisis as the central bank spending that kept defaults low runs out, according to Deutsche Bank AG. (DBK)

Credit-default swap prices imply that four or more European nations may suffer so-called credit events such as having to restructure their debt, strategists led by Jim Reid and Nick Burns said in a note. The Markit iTraxx SovX Western Europe Index of contracts on 15 governments including Spain and Italy jumped 26 percent in the past month as the region

15 hurt in Virgin Atlantic emergency landing in UK

A Virgin Atlantic Airways plane flying from Britain to Florida returned to Gatwick Airport for an emergency landing Monday, forcing more than 300 people to evacuate the plane using slides. Fifteen people were taken to the hospital with injuries, ambulance officials said.

Fire officials said there were reports of a small fire on the plane, an Airbus A330-300, and it flew back to Gatwick about two hours into the flight.

“Due to a technical problem, the captain decided as a precautionary measure to immediately evacuate the aircraft,” Virgin Atlantic said in a statement, adding that Flight VS27 from Gatwick to Orlando, Florida, carried 299 passengers and 13 crew members.

The airline declined to provide details of what exactly caused the emergency. But disputing the fire officials, a spokeswoman for Virgin Atlantic told The Associated Press the flight crew had been debriefed and said they did not see or smell smoke on board.

Fifteen people were injured while evacuating the plane, with some suffering from suspected fractures, said Dr high quality business cards. Jane Pateman, medical director of the South East Coast Ambulance Service.

The airline said it was working closely with authorities to establish the cause of the incident and that Virgin Atlantic CEO Steve Ridgway went to the airport.

The flight took off at 10:48 a.m. (0948 GMT, 5:48 a.m. EDT) and landed safely back at Gatwick just under two hours later.

A spokeswoman for Gatwick said the airport was closed for more than 90 minutes as passengers on the stricken plane used emergency slides to get to safety. The airport reopened using a backup runway just after 2 p.m. (1300 GMT, 9 a.m. EDT).

Virgin Atlantic chief Richard Branson tweeted an apology to those on board the plane. He said the airline’s staff was doing everything possible to help passengers.

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Are home prices near a bottom?

The average sale price of homes rose 4.6 percent in St. Louis city and county last month, but real estate pros aren’t ready to call the end of the long downward trend of home prices.

The St. Louis Association of Realtors said the average price of a home sold in March was $163,878, compared to $156,720 in March 2011. The median price was $110,000 both last month and a year earlier.

Meanwhile, the number of sales rose 10 percent, which marked the 10th straight month of gains.

The median price reflects the point where half the homes sold were more expensive and half cheaper. The average price is influenced more by the sale of expensive homes.

Home sales vary with the season, so a recent month’s sale is usually compared with the same month a year earlier.

Prices have been generally falling since 2007. However, there have been occasional months when they haven’t. For instance, there were one-month rises in average prices last year in August and April.

Still, 10 months of rising sales have real estate agents wondering when prices will turn up for more than a single month. In March, 1,194 homes sold in the core of the metro area, up from 1,086 a year earlier in the county and city.

“It doesn’t look like we’re out of it yet” said Shawn Kelsey, who keeps close track of local sales figures at Although sales are up, they’re still quite weak compared to the boom years when prices were rising, he notes.

Kelsey prefers to view prices over three months to smooth out monthly blips. Seen that way, prices in St. Louis County are still down, he notes.

Sales lately have been strongest on the low-to-moderate end of the housing market. For instance, 65 percent of single-family homes sold in March went for less than $160,000, and 31 percent of homes sold for below $50,000 in the metro’s core.

Glenn Vatterott, president of the Realtors Association, notes encouraging signs.

St. Louis now has a five to six month supply of unsold homes, a level considered close to a balance between supply and demand. The supply had reached a high of 10 to 11 months in early 2010, he notes.

Warm weather may have played a part in raising recent sales numbers, he acknowledged.“Maybe we’ve seen the spring market come a little early,” he said. But it could also reflect pent up demand from buyers who have been holding off purchases because of the economy.

Yet, Vatterott’s not ready yet to call a bottom to the St. Louis housing market.

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Oil falls on weaker Chinese growth

Oil prices are falling after China reported weaker economic growth.

China is the second-largest oil consumer after the U.S., and its rapid growth has been one of the primary drivers of world oil demand. From January to March, however, China’s economy grew by just 8.1 percent. That would be strong for most countries. For China it was the weakest in three years.

Slower growth means that world oil demand could level off, or even fall, this year low interest personal loan.

Benchmark U.S. crude fell 50 cents to $103.14 per barrel on Friday in New York. Brent crude lost 61 cents to $120.91 per barrel in London.

Retail U.S. gasoline prices also fell for the seventh day in a row to a national average of $3.90 per gallon.

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US natural gas boom brings decade-low price

The price of natural gas has fallen to its lowest level in more than a decade, a remarkable decline for a commodity that not long ago was believed to be in short supply.

The country’s supply of natural gas is growing so fast that analysts worry the country’s underground storage facilities could be fullby fall.

On Wednesday, the futures price of natural gas declined to $1.984 per 1,000 cubic feet, its lowest level since January 28, 2002, when the price hit $1.91. If the price falls to $1.75, it would be the lowest since March 23, 1999.

Natural gas production has boomed across the country as energy companies employ a new drilling technique to tap previously untouched reserves. The process has raised concerns about water safety, and has been temporarily banned in New York and New Jersey. But where it has been allowed, it has led to increases in drilling, job growth and production.

The falling price of natural gas has been a boon to homes and businesses that use the fuel for heat and appliances, and for manufacturers that use it to power their factories and make chemicals, plastics and other materials.

From October to March, households spent $868 on average on natural gas, a decline of 17 percent from last winter. Those savings have helped to relieve the burden of rising gasoline prices. Households spent $1,940 on gasoline from October to March, a 7 percent increase from the same period a year ago.

There is so much natural gas being produced _ and still in the ground _ that drillers, policymakers, economists and natural gas customers are trying to figure out what to do with it.

Here’s more about what natural gas is, what it is used for, who makes it, and where it comes from:

HISTORY

Natural gas seeps baffled early civilizations, and likely inspired the Ancient Greeks to build the shrine known as the Oracle of Delphi. In the U.S., the natural gas industry was launched in 1859 when Edwin Drake struck oil and gas in Titusville, Pa. Natural gas prices were regulated for most of the last century. It wasn’t until 1993 that the last of the federal price controls were lifted.

WHAT IS IT?

When natural gas is pulled from the ground, it is 70 percent to 90 percent methane, a simple molecule of carbon and hydrogen that is the most abundant organic molecule on earth. Methane is what gets delivered to homeowners. But the natural gas that comes out of the earth also contains some ethane, propane, butane and other hydrocarbons. These other hydrocarbons are separated from the methane and sold to chemical companies and other industrial users.

ORIGINS OF A GLUT

As recently as five years ago, natural gas was thought to be in short supply in the U.S. Then engineers learned to drill horizontally into shale formations and inject millions of gallons of water, sand and chemicals to break open rock and free the natural gas trapped inside. Enormous reserves of gas that were suddenly economical to produce were found in the East, Southeast, Midwest and West.

PRICES AND COSTS

_ Current U.S. futures price: $1.984 per 1,000 cubic feet

_ All-time low: $1.32 (Jan. 13, 1995)

_ All-time high: $15.38 (Dec. 13, 2005)

_ 10-year average: $5.96

_ Current price in Asia: $15.90

_ Current price in Europe: $9.37

PRODUCERS

_ Top 5 producers of natural gas in the U.S.: ExxonMobil, Chesapeake Energy, Anadarko Petroleum, Devon Energy, Encana.

_ Top 5 producing states in the U.S.: Texas, Alaska, Louisiana, Wyoming, Oklahoma.

_ Top 5 producing countries: U.S., Russia, Iran, Algeria, Canada.

HOW NATURAL GAS IS USED IN THE U.S.

_ 34 percent is used to generate electric power. (It accounts for a quarter of the nation’s electricity.)

_ 30 percent is used by industry to heat boilers or make chemicals, fertilizer and plastics.

_ 21 percent is used to heat homes, cook, dry clothes and heat water.

_ 14 percent is used by office buildings, restaurants and shops.

_ 0.1 percent is used to power trucks, buses and other vehicles.

POSSIBLE USES FOR AMERICA’S GROWING SUPPLY

_ Expand the production of plastics, fertilizers and other products that use natural gas as a feedstock.

_ Liquefy it and export it to Asia and Europe, where it fetches far higher prices.

_ Build natural gas fueling stations to encourage trucking and other commercial fleets to use compressed natural gas or liquefied natural gas as fuel.

_ Turn it into diesel or ethanol.

SOURCES: Oil Price Information Service, Platts, Energy Information Administration, Natural Gas Supply Association.

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Asian stocks mixed amid US, China economy concerns

Asian stocks were mixed Tuesday as a four-day slump in U.S. markets sparked by concern about the strength of the world’s biggest economy weighed on investor confidence.

Tokyo’s Nikkei 225 index added 0.8 percent to 9,620.24 while Hong Kong’s Hang Seng fell 0.9 percent to 20,417.82. China’s benchmark Shanghai Composite Index declined 0.7 percent to 2,270.21. South Korea’s Kospi gained 0.6 percent to 2,008.18.

Weaker than expected hiring in March has fueled doubt that U.S. economic growth is strong enough to justify the rally in global stocks during the last few months. The S&P 500 index jumped almost 30 percent from October to a four-year high a week ago.

In Asia, traders will be closely watching first quarter gross domestic product results, starting with China on Friday. China lowered its GDP growth target last month to 7.5 percent, sparking concern the world’s second-largest economy is slowing faster than expected.

“If Chinese growth this year can come in not at 7.5 percent, but rather closer to 8.3 or 8.5 percent, then we should see a bounce in the market,” said Lorraine Tan, director of equities research with Standard & Poor’s in Singapore. “What will take the market to the next level are signs of a pickup again in growth out of Asia and other emerging markets cash advance loan.”

Some analysts expect a possible recession in Europe and slowing growth in China and the U.S. will drag on markets this year. Efforts to lower high debt levels by consumers and governments also make global stocks unattractive, said David Darst, chief investment strategist with Morgan Stanley.

Elsewhere in Asia, Australia’s benchmark index was down. Singapore’s was up.

On Monday, the Dow Jones industrial average finished down 130.55 points at 12,929.59, its first close below 13,000 since March 12. The S&P ended the day off 15.88 points at 1,382.20. The Nasdaq composite closed down 33.42 at 3,047.08.

In currency markets, the dollar was steady at 81.55 yen while the euro was little changed at $1.3134.

Benchmark oil for May delivery was up 13 cents to $102.59 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 85 cents to settle at $102.46 in New York on Monday.

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Hollande rides mood as France embraces left

The man polls say has the best shot at becoming France’s next president wants to hire thousands more teachers, renegotiate Europe’s expensive, hard-won bailout package, and re-assess his country’s role in both Afghanistan and NATO.

But Socialist Francois Hollande appeals less for his platform than for his persona: the innocuous, intellectual everyman is many things that conservative President Nicolas Sarkozy is not.

Hollande, 57, is tapping into a French population wary of international finance, weary of Sarkozy’s “bling-bling” personality and eager for change. While countries in struggling Europe shift to the right, France may hand the presidency to the left for the first time in a generation, with repercussions for the continent’s direction and France’s future.

Part of Hollande’s appeal is his Mr. Nice Guy image, but he still must convince voters that he’s got what it takes to run a complex, nuclear-armed nation and one of the world’s biggest economies.

Hollande isn’t the only leftist making headlines in this campaign: Firebrand far-left candidate Jean-Luc Melenchon has amassed some of the biggest crowds so far at rallies blanketed in red communist flags. Melenchon, with the charisma that the mainstream Hollande lacks, is complicating the political calculus.

French voters kick off the balloting in two weeks, with 10 candidates from across the political spectrum facing off in a first-round vote on April 22 that will winnow the race down to two.

While Hollande has slipped a little in recent weeks, polls have suggested for months that he would win the expected two-man finale against Sarkozy on May 6 by a broad margin.

The economic crisis in Europe has felled many governments in recent years. A Hollande victory could break from a recent rightward trend in the continent, and put France out of step with other big European countries like Germany, Spain, Britain and Poland _ all run by center-right or conservative leaders. Italy, hobbled by a debt crisis, is led by technocrat Mario Monti.

Some of Hollande’s major proposals could raise eyebrows abroad: As governments enact austerity measures elsewhere in Europe, he wants to hire thousands more teachers. He wants to scrap a European bailout package led by Sarkozy and German Chancellor Angela Merkel. He has pledged to pull all French combat troops out of Afghanistan by year-end, and says that pledge would be the first thing he tells allies at a NATO summit in Chicago in May.

For many in France, the time seems ripe for a return to a Socialist president: the only one in postwar France was Francois Mitterrand, from 1981 to 1995; throw-the-bums-out has been an election theme in Europe; Sarkozy, in part for reasons of personal style, has been unpopular for years; and the financial crisis and debt crises in Europe have emboldened the left.

Hollande is seen as more of a consensus manager and a listener than visionary. For much of his tenure as party first secretary from 1997 to 2008, he served mostly as a water carrier for party elders _ and only now is coming into his own.

His advisers insist to a foreign reporter that Hollande is no old-school Socialist, but a social democrat wary of the economic challenges coming from 21st-century powers like China and India.

Yet while major parties of the left in Europe reformed and tacked toward the political center in recent years _ like Gerhard Schroeder’s Socialists in Germany, or Britain’s Labour party under Tony Blair, the Socialists in France eschewed such a move.

And when he speaks to the French faithful, Hollande’s class-warfare style rhetoric _ inveighing against the financial world that he calls his “adversary”, and demanding justice for the underclass _ often draws cheers.

Hollande, who once quipped “I don’t like the rich” on TV, got a recent boost in the polls after he announced a proposal to slap a 75-percent tax on income beyond the first (EURO)1 million ($1.3 million) earned each year.

Hollande on Wednesday drew thousands who spilled out of two warehouses at a convention center near the city of Rennes, in the heart of the left-leaning region of Brittany.

The highlight was Hollande’s appearance alongside Segolene Royal, his longtime partner and mother of his four children. Royal, who is also Socialist, was the party’s nominee in 2007 _ and lost handily to Sarkozy low fee payday loans. Hollande and Royal split not long after that election.

On stage, Hollande and Royal appeared just seconds together, and the body language was uncomfortable: they clasped hands from a distance, and smiled to the cheering throng. But the message _ party unity _ was clear. His new romantic partner, political journalist Valerie Trierweiler, looked on from a seat in the crowd.

Hollande’s near 90-minute speech covered his platform: A focus on education, job support for French youths facing high jobless rates, equal pay for women, respect for culture and ethnic diversity. Sarkozy has structured his campaign on a theme of a “strong France.”

Hollande claimed that Sarkozy, who took office promising economic growth, fiscal responsibility and competitiveness in France, had failed on all _ and promised more responsible Socialist leadership.

“People say to us, ‘Watch out, the left is back, it’s going to empty the (state) coffers.’ It’s already happened! ‘Watch out, if the left is back, it’ll raise the debt’. It’s already happened! ‘The Left will hurt competitiveness’ _ It’s already happened,” he thundered. “Well, we’ll do the opposite.”

The rich, he said, will be asked to pay more, and more money will be redistributed “to allow France to pick itself up.”

Unlike Sarkozy rallies, where a preppier crowd often hoists tricolor French flags in abundance, the Rennes gathering mostly brought out young students and retirees.

His campaign has been textbook: He launched a 60-point platform months ago, hewing to many Socialist tenets. At times, he comes across as stiff and cautious, but has made no big gaffes.

Hollande’s biggest challenge has been to try to project presidential caliber. While his pedigree is top-tier as a graduate of the Ecole National d’Administration _ the French breeding-ground school for both political and corporate elites like former President Jacques Chirac _ he has never run a government ministry.

Under his tenure as party boss, the Socialists suffered one of the biggest shockers in recent French political history: Lionel Jospin lost the first round to far-right nationalist Jean-Marie Le Pen in the 2002 presidential race, later won by Chirac. Hollande calls it the biggest blow of his career and one he won’t soon forget.

Hollande was born in the Normandy city of Rouen, the son of a social-worker mother who he admired and a doctor father who backed the political right and whose ideas “forced me to construct my ideas,” Hollande writes in his campaign-season book entitled “Changer de Destin” (Change Destiny).

On Les Guignols de l’Info, a satirical fake news show with puppets, Hollande has long been depicted as innocent, wide-eyed and soft-in-the-middle _ with a dopey, hollow laugh.

But in the Sarkozy era, he’s tapped into frustration about unemployment and perceived economic inequality. While Sarkozy, a former hard-charging Interior Minister, has trotted out his longtime formula of playing up his security credentials, Hollande has focused on what polls show worry the French most: joblessness and the economy.

The body language at the lectern _ where both Sarkozy and Hollande can excel _ speaks volumes. Hollande often leans on his elbows, or flails his arms about in the air, and laughs. Sarkozy cuts the air in crisp movements, and is seemingly less about engaging his audience than displaying resoluteness.

People who have known Hollande for years say his human touch and his assiduousness _ often unseen _ at the ground game of politics set him apart.

“What you notice most about Francois is that he’s well-balanced, has integrity, and feels good about himself,” said Frederic Bourcier, the Socialist Party’s First Secretary in the region around Rennes, alluding to the image of Sarkozy as hasty, tempestuous and aggressive. “We need something new.”

He also said Hollande had reworked himself, with an image makeover ahead of the campaign that included trimming his midsection, and that could serve as an inspiration for the country.

“This guy is tailor-made for France nowadays,” Bourcier said.

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New York Fed’s head of markets to leave after Twist

Brian Sack, who oversees the U.S. Federal Reserve’s dealings with Wall Street and was seen as a “rising star” within the central bank, will resign from his post later this year, the New York Fed said on its website on Thursday.

Sack, 41, has been the head of the New York Federal Reserve’s markets group since June 2009. His tenure includes the implementation of the central bank’s unconventional measures to stabilize the banking system and pull the U.S. economy out the worst recession since the Great Depression.

“Mr. Sack will remain in his current position as head of the Markets Group and Manager of the System Open Market Account(SOMA) until June 29, 2012, to help ensure a smooth transition,” the regional Fed bank said in a statement.

Sack’s resignation is “entirely his own decision,” and he has not lined up another job after he leaves the New York Fed, a Fed spokesman said.

Sack will be placed on leave until September 14, during which time he will have limited contact with the New York Fed and no access to the bank’s information, including Federal Open Market Committee and supervisory materials, the New York Fed said, adding it has started the search process for a replacement.

Sack replaced William Dudley, the current president of the New York Fed and a permanent voting member on the Federal Open Market Committee, the central bank’s policy-setting group.

Sack’s departure should not have a material impact on Fed policy, which is at a cross-road as U.S. economic growth has shown tentative signs of gaining momentum. But there are those inside the Fed and on Wall Street who believe more monetary stimulus, likely a third round of bond purchases nicknamed QE3, might be required to avert a rather sluggish economic recovery from being derailed.

“I don’t think it will mean a lot for Fed policy. They pride themselves with having a deep bench and not dependent on any single person,” said Julia Coronado, chief North America economist at BNP Paribas in New York.

Sack oversaw much of the Fed’s quantitative easing measures that have ballooned its balance sheet to $2.86 trillion.

Prior to joining the New York Fed, Sack was a vice president at Macroeconomic Advisers, an economic research firm, where he conducted extensive analysis of the interactions between Fed policies, financial markets and the U.S. economy, according to the New York Fed’s online biography on him.

Before joining Macroeconomics Advisers in 2004, Sack was the head of the Monetary and Financial Markets Analysis section at the Fed’s Board of Governors. His responsibilities in that role included preparing materials on financial market developments for the policy-setting FOMC and briefing Board members about those developments.

BNP’s Coronado, who knew Sack when they were working together at the Federal Reserve Board, said, “He was a rising star on the Board…He rose through the ranks very quickly.”

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Class of 2012: More jobs, bigger paychecks

This year’s college graduates are being offered more jobs and fatter paychecks.

Members of the Class of 2012 are being offered median starting salaries of $42,569 — up 4.5% from last year, a new report from the National Association of Colleges and Employers shows.

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How much does it actually cost? Terms you need to know Find out what you’ll really pay How to go for free How to find cheap colleges Finding mid-priced colleges

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Meanwhile, they have more jobs to choose from. Employers expect to hire 10.2% more graduates this year than they did last year, according to NACE’s survey of 160 employers overnight pay day loans.

These employers have posted 15,767 job openings for college graduates this year — up about 10% from the 14,341 that were posted for the Class of 2011 and more than triple the mere 5,174 job postings for the Class of 2010.

Remarkable hiring stories

But the competition is steep, with employers reporting that they have received nearly 33 applications for every job posting, up from 21 applications per posting last year.

The major in highest demand is engineering, with 69% of employers in that field saying they are hiring graduates. Business majors are next on the list, with 63% of employers hiring. Accounting, Computer Science and Economics are also among the top five most-desired majors.

These are also the fields with the highest-paying jobs, according to a separate survey NACE conducted this year. Employers in each of these areas are paying median salaries above $40,000 to this year’s graduates.

Engineering jobs pay the most — with this year’s graduates starting at a median salary of $58,581, which is relatively unchanged from last year.

But even some of the jobs that don’t typically pay as well posted increases in salaries this year. Education-related salaries increased 4.5% to a median $37,423, while salaries in the communications field rose nearly 4% to $40,022. 

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Chesterfield outlet mall duel continues to heat up

UPDATED at 5:30 p.m. with comments from both developers.

The sprint to build a high-end outlet mall in Chesterfield went into higher gear on Tuesday with one project beginning to move around dirt and the other announcing that Saks Fifth Avenue’s Off 5th has agreed to be an anchor.

Both developers acknowledge that only one of these projects will end up being built. Experts say it will likely come down to who can sign the best retailers. So the projects have been racing to get through bureaucratic hoops while also touting the relative strengths of their projects, both of which have set fall 2013 as an opening date.

Simon Property Group, the owner of the St. Louis Mills, took a major step Tuesday when it announced that Off 5th has agreed to be an anchor of its proposed St. Louis Premium Outlets. It is a 350,000 square foot project on the south side of Highway 40 just east of the Daniel Boone Bridge.

“They are pretty major,” Michele Rothstein, a Simon spokeswoman, said of Off 5th. This would be the only Off 5th in the St. Louis region. “It’s a great announcement to set the tone for the project.”

Simon has a 60 percent interest in the project, which is a joint venture with Woodmont Outlets and EWB Development LLC.

“We are committed to moving forward,” she said. A groundbreaking date has not yet been set.

Meanwhile, the developers of the other project, now being called Taubman Prestige Outlets Chesterfield (formerly known as Chesterfield Outlets), were in town on Tuesday to check out their site across from Chesterfield Commons on the other side of Highway 40. Trucks hauling soil have begun moving in and out of the site where preparation work has already begun on the proposed 450,000 square foot project.

Taubman Centers officials said in an interview nearby the site that they are planning a ceremonial groundbreaking in June and will begin to announce retailers after that.

“The response we’ve gotten from the tenant community has been very strong not only for the market here but for our site specifically,” said Nicolai Schultz, Taubman’s development manager.

He said retailers like the easy on-and-off access to the highway and its proximity to Chesterfield Commons. He also emphasized that Taubman is further ahead in the process, having already received approval on its site plans from the city.

Aimee Nassif, Chesterfield’s planning and development director, noted that the city is still working with the Taubman project on its improvement plans and that it still has to submit an application for building permits.

Meanwhile, the St. Louis Premium Outlets project is hoping for its section plans to go before the planning commission next week and then to get on the city council’s agenda in early May, she said.

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