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Gates Foundation acknowledges flaws in report

SEATTLE – The Bill & Melinda Gates Foundation has taken another baby step toward increased transparency, acknowledging in its annual report that the world's largest charitable foundation is too secretive and hard to work with.

The report, posted online Tuesday, includes the usual financial information and a look at the foundation's plans. But it also offers a glimpse of the organization's attempts to be more open.

CEO Jeff Raikes draws attention in the report to a grantee survey that gave the foundation poor marks for communicating its goals and strategies, and for confusing people with its complicated grant-making process.

Raikes originally released the survey results in June — a day before Bill Gates made headlines for launching a campaign with investor Warren Buffett to get other American billionaires to give at least half their wealth to charity.

Few but charity insiders noticed the unfavorable review, and the foundation could have let it fade into obscurity.

Instead, Raikes points out the results for all to see in the annual report, right next to his letter outlining the foundation's priorities for the near future.

The editor of the Chronicle of Philanthropy believes the foundation is clearly making an effort to improve its communications.

Stacy Palmer credits Raikes, with his years at Microsoft Corp., for knowing the importance of customer relations. But she thinks the foundation has a ways to go.

The Gates Foundation also has been criticized for having a small board of directors — the co-chairs and Buffett — running such a large charitable organization, Palmer said.

Pablo Eisenberg of Georgetown University's Center for Public & Nonprofit Leadership said the foundation has a moral obligation to share its decision-making process more broadly as it distributes what is partly taxpayer dollars they saved on taxes by giving the money away.

"There's no substitute for other points of view and perspectives around the table when a so-called board is about to make a decision on priorities and programs affecting $3 billion a year or more," Eisenberg said.

The foundation does have several advisory boards and other consultants, but Eisenberg considers them a poor substitute for a governing board that includes strong outside voices.

He wonders if a larger board would have chosen to spend so much money on vaccines or would have pushed the foundation to move in other directions, both globally and in the United States.

"The question we might ask is why Gates has not put a huge amount of money into our own dysfunctional health system," Eisenberg said. "They could have led the way and led public opinion."

The foundation, which has an endowment of $33 billion, made grants totaling $3 billion in 2009. By far the biggest portion went to global health, where grants totaling more than $1.8 billion were made last year.

Global development including agriculture and financial services for the poor was the next biggest grant area, followed by U.S. education and construction of the foundation's new Seattle headquarters.

In his annual letter, Raikes says eradicating polio will be a major push next year, both in dollars granted and vocal advocacy.

Global health, particularly vaccine research and distribution, will continue to be the focus, with an eye toward meeting the United National's Millennium Development Goals by 2015.

"The next five years offer a historic opportunity to have an impact on the health and welfare of people in the developing world," Raikes wrote. "Even in the face of very tough economic times across the globe, I am optimistic when I think about all that we can accomplish together with our partners."

The public and the grantees acknowledge the Gates Foundation is making a difference around the world, but they want to know more, Palmer said.

"Who decides how much to spend? Who do they consult about the best ideas and the smartest ways to do things?" she asks. "They don't have a lot of openness about how that process works."

Foundation spokeswoman Kate James said the organization is making an effort to be more transparent, both to better its relationship with grantees and to help build understanding and awareness of its efforts.

At the same time, the foundation has been finding its voice on social media. In 2009, it established accounts on Facebook, YouTube and Twitter, including Bill Gates' verified Twitter account that now has more than 1.4 million followers.

Other new elements in the report include videos of staff and workers in the field, a focus on the organization's nonprofit partners and a section on the foundation's "online communities."

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Online:

Gates Foundation annual report:

Asia stocks hit 1-month high

SYDNEY (Reuters) – Asian stocks touched one-month highs on Monday and European bourses extended last week's rally, as investors bet a recent run of better-than-expected economic data meant the world was not going to slide back into recession.

The FTSEurofirst 300 (.FTEU3) of top European shares rose 0.4 percent in early trade, as did Germany's DAX (.GDAXI), while Britain's FTSE 100 (.FTSE) and France's CAC 40 both gained 0.5 percent. (.L)

The improved market mood came after Friday's U.S. jobs data was not as bad as some had feared, allaying worries about a second recession in the world's biggest economy.

Some said a 1.3 percent jump in the S&P 500 (.SPX) on Friday also helped to brighten the mood. U.S. markets were closed for a holiday on Monday.

"There was nothing to scare the equity market into its usual September submission, and the performance of the S&P at the end of last week was encouraging," said Sean Keane, an analyst at Triple T Consulting in New Zealand.

As always, hopes for steady growth aided growth-sensitive stocks and commodities, at the expense of safe-havens such as gold and government bonds.

The MSCI Asia stock index outside Japan (.MIAPJ000PUS) jumped 1.2 percent. In a nod to hopes for firm growth prospects, the sub-index for non-essential consumer goods (.MIAPJCD00PUS) fared the best with a 1.4 percent climb.

Japan was Asia's best performer, with the Nikkei (.N225) climbing 2.1 percent and the broader Topix (.TOPX) rising 1.8 percent. Traders said buying had gained momentum after the Nikkei broke above its 25-day moving average.

Growth-sensitive exporters led the rise. Kyocera Corp (6971.T) climbed 2 percent; TDK Corp (6762.T) added 2.4 percent, and Tokyo Electron Ltd (8035.T) rose 1.9 percent.

Copper, a popular gauge for the state of industrial activity, was firm with London prices near four-month peaks.

The preference for risk -- for now -- took the shine off the U.S. dollar's (.DXY) safe-haven appeal. It flitted near a 15-year low on the yen, held back by in the interim by investor wariness of possible intervention from Tokyo.

Equally, Japanese government bond yields also hit an eight-week low, while most U.S. Treasury two- to 10-year note futures edged lower.

Gold, another traditional haven, was steady, while oil, which tends to benefit when the growth outlook improves, was an anomaly.

It fell toward $74 a barrel as peak gasoline use in the United States, a top consumer, waned with the end of the summer driving season.

STILL CAUTIOUS ON EQUITIES

But some analysts warned the market was not ready to dive into risky assets just yet.

The latest data from EPFR Global showed investors still had U.S. growth doubts firmly on their mind as they continued to pull money from stocks in favor of bonds.

Equity portfolios across regions suffered, but those in the United States were the worse hit.

Even in Asia, price performance showed the region's stock market has had a rough ride.

The MSCI Asia ex-Japan index is flat for the year, with just a 0.8 percent gain. The Shanghai Composite index (.SSEC), which resides in the world's growth engine, has struggled with a near 18 percent drop since January.

In contrast, two-year U.S. Treasury yields hit a record low last month, while Indonesian bonds have awarded investors handsome dollar-adjusted returns of over 20 percent for the year.

(Editing by Alex Richardson)

Williams, Querrey play the US Open numbers game

NEW YORK – Venus Williams says 30 is the new 20. Sam Querrey likes to think 20 could be No. 1.

Thirty-year-old Williams is talking about age, and No. 20 Querrey is talking about seeding, but both are talking about the same thing when it comes to the U.S. Open.

They'd like to be the ones to put America back on top at its own national championship.

"The average sports fan basically watches the Grand Slams," Querrey said after his third-round win over No. 14 Nicolas Almagro on Sunday. "If you don't have a guy in the finals or winning one of those, in tennis, you really don't get a lot of recognition."

Querrey and 19th-seeded Mardy Fish, who plays No. 3 Novak Djokovic on Monday, are still long shots — but the only two remaining hopes for the United States to break a seven-year drought without a men's champion.

Another candidate, No. 18 John Isner, lost 6-4, 6-7 (7), 7-6 (5), 6-4 Sunday night despite hitting 33 aces against No. 12 Mikhail Youzhny of Russia.

"I'm really sorry, but you still have a lot of USA players," Youzhny told the crowd at Arthur Ashe Stadium, which was squarely in Isner's corner.

Williams, meanwhile, is a two-time U.S. Open champion and the only American left in the women's draw. She defeated No. 16 Shahar Peer 7-6 (3), 6-3. With a quarterfinal matchup looming against another 30-year-old player, Francesca Schiavone, Venus found herself fielding questions about how "old" is too old in women's tennis.

"Seems like everybody is hitting their stride at 30. It's the new 20," Williams joked. "But I'm hoping that my experience will help me, just like it did today."

Practically everything about Williams' win over Peer spoke of a player with years of experience in pulling things together when she's not at her best.

On a windy, tougher-than-expected day against an opponent she's now played six times without dropping a set, Williams got only 48 percent of her first serves in. She faced six break points and lost three. She squandered five chances to wrap up the first set in a 22-point 12th game.

She looked to still be rounding into form after missing most of August with an injury to her left kneecap.

"It's always good to have a tough match, I think, or a tougher match," Williams said. "The kind of a match where you have to challenge yourself against your opponent and the conditions and everything and just continue to stay tough and to stay positive."

Querrey's next match will come against No. 25 Stanislas Wawrinka, who pulled off a 6-7 (3), 7-6 (4), 6-3, 6-3 upset against No. 4 Andy Murray of Britain. Murray knows all about what it's like to play for a country that desperately wants a winner. No British man has won a Grand Slam tournament since 1936. This was Murray's second straight early exit from the U.S. Open, and his latest loss will surely get picked apart back home.

"I have no idea of whether I'll win a Grand Slam or not," Murray said. "I want to. But if I never win one, then what? If I give 100 percent, try my best, physically work as hard as I can, practice as much as I can, then that's all I can do."

Same goes for Querrey.

With Isner gone (He played 22 fewer games in the entire tournament than he did in his historic 70-68 fifth set at Wimbledon) and No. 9 Andy Roddick eliminated earlier in the week, Querrey and Fish will help shape opinion on whether the arrow is pointing up or down at the highest reaches of American tennis.

They still have time to be remembered as role models for a new generation of American stars. Or they could continue a trend that began this summer when Roddick briefly dropped to No. 11 and, for the first time since the rankings began in 1973, there wasn't a single American in the top 10.

"I mean, you always hear that," Querrey said. "It's kind of like any sport. You've got waves where you'll have a group of Americans in the top 10; you might have couple years where we don't. It's like with the Lakers: They'll win some championships, and (then) they won't make the playoffs. It's just like that."

These are not the kind of issues they worry about in Spain these days.

Sparked by No. 1 Rafael Nadal's surge to the top, Spain is turning into a tennis factory of sorts. Nadal, who cruised to a straight-set victory over Gilles Simon, was one of five Spaniards to win third-round matches Sunday. Add No. 21 Albert Montanes, who won Saturday, and the country has six members in the round of 16 — tying the record for any country other than the United States at the U.S. Open.

"It's always nice to see all the Spanish winning and being in the last rounds, no?" said No. 8 Fernando Verdasco, who eliminated 2002 Wimbledon runner-up David Nalbandian of Argentina 6-2, 3-6, 6-3, 6-2.

In one of Sunday's early matches, No. 2 Kim Clijsters rolled former world No. 1 Ana Ivanovic 6-2, 6-1 to set up a quarterfinal meeting against No. 5 Sam Stosur. Stosur beat No. 12 Elena Dementieva 6-3, 2-6, 7-6 (2) in a match that ended at 1:35 a.m. Monday, the latest-finishing women's match in U.S. Open history, and one that could give Clijsters an advantage when they play.

"She's got a 14-hour head start on me," Stosur said. "She played first and I played last, so there's not much bigger difference than that."

Busch league: Pujols calls out Cardinals CF Rasmus

ST. LOUIS – A season that is slipping away for the St. Louis Cardinals has turned personal, with star slugger Albert Pujols criticizing young outfielder Colby Rasmus.

Rasmus has admitted he wasn't always happy while playing for the Cardinals as a rookie last year and this season. The 24-year-old center fielder is denying reports, however, that he asked in July to be traded.

Pujols says Rasmus, whose 19 homers are third on the team behind Pujols and Matt Holliday, needs to spend more time in the majors before he starts complaining. The three-time NL MVP said Sunday that if Rasmus wants to play somewhere else, the Cardinals should accommodate him.

"It's a privilege to play in this organization, just behind the Yankees with 10 World Series (titles) and be able to be in the postseason almost every year," Pujols said. "I have nothing negative to say about this organization.

"For a young kid to come up and say that, that he wants to be somewhere else, I don't know why."

Pujols pointed out that he, too, was once a "young guy."

"You need to know the mistake you make and be accountable to that. I think for him to come up and ask for a trade and that you guys should know about it, I don't think that was pretty professional," Pujols told reporters.

The Cardinals trail NL Central-leading Cincinnati by seven games and dropped eight of 10 on their latest road trip. Even after taking two of three from the Reds this weekend, the defending division champions were long shots to make the postseason.

Rasmus hasn't always gotten along with manager Tony La Russa — over the years, Scott Rolen and some other St. Louis players didn't see eye-to-eye with him, either — and has appeared moody at times. Pujols said he didn't know whether Rasmus was happy.

"With Colby," Pujols said, "You never know."

After Sunday's 4-2 victory over the Reds, Rasmus said he loved playing for the Cardinals and had no beef with La Russa. Both Rasmus and general manager John Mozeliak denied that the outfielder had wanted out.

"Some things might have gotten misinterpreted," Rasmus said. "I haven't handled the pressure well some of the time and said some things that I shouldn't, but I love being here, love the fans. So moving forward I'm just trying to play hard and happy that we won today."

Mozeliak said neither Rasmus nor his agent requested a trade, but added he wasn't privy to any discussions between manager and player.

"Me and Mo are tight, we get along well," Rasmus said. "I never did that and I don't know where that's coming from. I just want to play baseball and have fun."

La Russa also said he had no problem with Rasmus. The St. Louis Post-Dispatch said the source of a rift was Rasmus' participation in a hitting camp last summer run by his father, who was his high school baseball coach and hasn't been shy about giving his son pointers.

"I think he's a real good source for him and I was not annoyed," La Russa said. "If you don't trust me or don't believe me, then you don't trust me and don't believe me, but I'm telling you I have no problem with Colby.

"I think if he hangs around here long enough, he'll appreciate what it means to be a Cardinal."

Earlier in the weekend, Rasmus told The Associated Press that his relationship with La Russa was "professional." He said there have been frustrations, but maintained he has no problem playing for the manager.

"We've had our times, but it's a tough game out there, a lot of pressure involved," Rasmus said. "Some things happen in the heat of the moment, but everything's fine.

"We've got a good relationship going on right now."

Rasmus was the Cardinals' first-round draft pick out of high school in 2005 and is the top prospect to rise through the system since Pujols in 2001. He said he hasn't always handled pressure well and last year in particular felt isolated.

2Being on the big stage and being the young guy on the team, not having many guys to go through, it makes it tough," Rasmus said. "But that's just part of it and you've got to grow up and deal with it."