New claims for jobless benefits decline again

WASHINGTON -- New claims for unemployment insurance fell for the third straight week, suggesting the economic recovery is motivating companies to lay off fewer workers. But that doesn't mean they will be in a rush to hire.

For the week ending May 4, new claims dropped by a seasonally adjusted 11,000 to 411,000, the lowest level since March 16, the Labor Department reported Thursday. Claims fell by 5,000 and by 25,000 in the prior two weeks.

Even if companies reduce the speed at which they lay off workers, the jobless rate will keep rising if companies are reluctant to hire employees back.

"The bulk of the big job cuts are behind us. Companies are getting more right sized for the current economic conditions," said Ken Mayland, president of ClearView Economics. "But with all the uncertainties, companies are not going to be rehiring with gusto."

Former FBI boss got wine, cash from mob

BOSTON -- A former FBI supervisor testified Thursday he took bribes of wine and cash that retired agent John J. Connolly delivered to him from top-ranking mob informers.

John Morris, Connolly's boss when he handled James J. "Whitey" Bulger and Stephen "The Rifleman" Flemmi, took the stand on the second day of Connolly's trial on charges of racketeering, obstruction of justice and conspiracy.

"In the past I've lied to stay out of trouble," said Morris, who has pleaded guilty to accepting a bribe and was given immunity to testify. "The only way I can stay out of trouble since the immunity order is to tell the truth."

Morris said Connolly twice gave him cases of fine wine he indicated were gifts from the gangsters.

One time, he said Connolly "told me to be careful with the case, because there was something special in the bottom" -- an envelope with $1,000 in cash.

Ex-Attorney General Reno involved in wreck

MIAMI -- Former U.S. Attorney General Janet Reno's pickup was bumped by another car Thursday as she was running errands near her home, a spokeswoman for her gubernatorial campaign said. No one was injured.

Police did not immediately release other details about the accident.

"This was a minor fender-bender," campaign spokeswoman Nicole Harburger said. "There was no damage done to the beloved red truck."

Harburger said the police officer on scene made no decision on who was at fault.

N.Y. state senator faces charges of trading bribes

NEW YORK -- A powerful New York state senator surrendered Thursday to face charges that he accepted bribes in exchange for his assistance in getting public funding on city and state projects.

The indictment of Guy Velella, 57, also names his father, who also is his law partner; a former state housing official; and a construction consultant on bribery charges.

A fifth person -- a construction company owner -- was charged with helping to launder some of the alleged bribes, Manhattan District Attorney Robert Morgenthau said at a news conference.

A spokesman for Velella, Gerald McKelvey, said the senator would plead innocent at his afternoon arraignment in state Supreme Court.

CDC urges annual HIV tests for gays, bisexuals

ATLANTA -- Hoping to head off a new surge of infections, the government recommended for the first time Thursday that sexually active gay and bisexual men get tested once a year for the AIDS virus.

Previous guidelines from federal health officials have been less specific, urging doctors to recommend HIV tests for patients whose behavior might put them at risk for infection.

But studies conducted in the past few years have shown gay and bisexual men, possibly lulled into complacency by medical breakthroughs that have allowed AIDS patients to live longer, are having more unprotected sex.-- From wire reports

The new guidelines, released by the Centers for Disease Control and Prevention, recommend annual screening for HIV, chlamydia, syphilis and gonorrhea for gay and bisexual men -- plus vaccination against hepatitis A and B.

--From wire reports