Boeing Closer to Answer on 787s, but Not to Getting Them Back in Air


Issei Kato/Reuters


Safety inspectors looked over a 787 on Friday in Japan. The plane made an emergency landing after receiving a smoke alarm.







With 787 Dreamliners grounded around the world, Boeing is scrambling to devise a technical fix that would allow the planes to fly again soon, even as investigators in the United States and Japan are trying to figure out what caused the plane’s lithium-ion batteries to overheat.




Ray LaHood, the transportation secretary, made it clear on Friday that a rapid outcome was unlikely, saying that 787s would not be allowed to fly until the authorities were “1,000 percent sure” they were safe.


“Those planes aren’t flying now until we have a chance to examine the batteries,” Mr. LaHood told reporters. “That seems to be where the problem is.”


The Federal Aviation Administration on Wednesday took the rare step of grounding Boeing’s technologically advanced 787s after a plane in Japan made an emergency landing when one of its two lithium-ion batteries set off a smoke alarm in the cockpit. Last week at Boston’s Logan Airport, a battery ignited in a parked 787.


The last time the government grounded an entire fleet of airplanes was in 1979, after the crash of a McDonnell Douglas DC-10.


The grounding comes as the United States is going through a record stretch of safe commercial jet flying: It has been nearly four years since a fatal airline crash, with nearly three billion passengers flying in that period. The last airliner crash, near Buffalo, N.Y., came after a quiet period of two and a half years, which suggests a declining crash rate.


Investigators in Japan said Friday that a possible explanation for the problems with the 787’s batteries was that they were overcharged — a hazard that has long been a concern for lithium-ion batteries. But how that could have happened to a plane that Boeing says has multiple systems to prevent such an event is still unclear.


Given the uncertainty, it will be hard for federal regulators to approve any corrective measures proposed by Boeing. To lift the grounding order, Boeing must demonstrate that any fix it puts in place would prevent similar episodes from happening.


The government’s approach, while prudent, worries industry officials who fear it does not provide a rapid exit for Boeing.


The F.A.A. typically sets a course of corrective action for airlines when it issues a safety directive. But in the case of the 787, the government’s order, called an emergency airworthiness directive, required that Boeing demonstrate that the batteries were safe but did not specify how.


While the government and the plane maker are cooperating, there are few precedents for the situation.


“Everyone wants the airplane back in the air quickly and safely,” said Mark V. Rosenker, a former chairman of the National Transportation Safety Board. “But I don’t believe there will be a corner cut to accomplish that. It will happen when all are confident they have a good solution that will contain a fire or a leak.”


Boeing engineers, Mr. Rosenker said, are working around the clock. “I bet they have cots and food for the engineers who are working on this,” he said. “They have produced a reliable and safe aircraft and as advanced as it is, they don’t want to put airplanes in the air with the problems we have seen.”


The government approved Boeing’s use of lithium-ion batteries to power some of the plane’s systems in 2007, but special conditions were imposed on the plane maker to ensure the batteries would not overheat or ignite. Government inspectors also approved Boeing’s testing plans for the batteries and were present when they were performed.


Even so, after the episode in Boston, the federal agency said it would review the 787’s design and manufacturing with a focus on the electrical systems and batteries. The agency also said it would review the certification process.


The 787 has more electrical systems than previous generations of airplanes. These systems operate hydraulic pumps, de-ice the wings, pressurize the cabin and handle other tasks. The plane also has electric brakes instead of hydraulic ones. To run these systems, the 787 has six generators with a capacity equivalent to the power needed by 400 homes.


Nicola Clark and Christopher Drew contributed reporting.



This article has been revised to reflect the following correction:

Correction: January 19, 2013

An earlier version of this article misstated how regulators responded to small cracks found in the wings of the Airbus A380, and when those cracks were found. Regulators required inspections, followed by fixes, last year, not two years ago; the plane was not grounded.



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Social media dispute resolution stumps some companies






(Reuters) – If HBO cuts out on you in the middle of the latest “Girls” episode, and you have Charter Communications Inc as your cable provider, don’t try tweeting your dismay to their customer service department. Nobody will hear your lament.


Charter, the fourth largest cable provider in the U.S. with 5.2 million customers across 25 states, closed up its social-media based customer service team in December. “Umatter2Charter,” as it was known, had been taking customer complaints over Twitter and Facebook and trying to resolve them, but the company says it is now done with working out customer service issues in social media forums.






The move, which might seem to conflict with the growth of social media, highlights the difficulty some businesses are having with free-flowing, round-the-clock social media, its public nature and the expectation of immediate responses.


With Facebook users numbering about a billion and Twitter drawing 200 million, it might be hard to believe that any retail enterprise would drop out of the fray, but Charter isn’t the only major company to announce such a move. Also in December, the largest single grocery store in New England – the Wegmans in Northborough, Massachusetts – shuttered its Facebook page despite having some 8,000 fans.


“It’s a tough sport,” says J.D. Peterson, vice president of product marketing for San Francisco-based Zendesk, which helps companies manage customer service. “The real-time nature of it – at times the volume that can come from it – it’s very new and different for businesses.”


While Peterson’s company recommends going where the customers are – and a big chunk are clearly on social media – Peterson says not all businesses share the same philosophy or have the ability to engage those consumers in these open forums. But any company that has a significant online presence doesn’t really have a choice, he says, working with consumers through social media is expected of them.


Advocates for the use social media say the challenge actually presents an opportunity for businesses – showing they are responsive to complaints and care about their customers can bring in revenue.


“I have seen this time and time again, and the end result is that the interaction often turns an irate customer into an advocate for the brand. And that is worth it’s weight in gold,” says Mike Rowan, chief marketing office for Atlanta-based Swarm, which manages social media for companies.


That’s certainly the way retailer Lands’ End, a division of Sears Holdings Corp, sees it.


“When we started using social media tools like Facebook and Twitter in early 2009, it gave us a new opportunity to do what we’ve done for 50 years, which is connect with our customers,” says Michele Casper, Lands’ End’s senior director of public relations. “Whether it is through social media, our call centers or online, we offer the same level of customer service through each channel.”


DIVERTING COURSE


Charter says it is not walking away completely from social media – just the idea of providing customer service via Twitter. The company says it has ample other avenues for consumers to get help – including telephone, customer service counters and live chat on its web page.


“We communicate with thousands of customers each day on the phone and in person, and that’s where we’ll focus our efforts,” says Charter spokeswoman Anita Lamont. “While social media is a method some consumers choose to seek help, Charter offers phone and web-based contact solutions where all customers can access resources to provide assistance.”


The abandonment of the Facebook page at the Massachusetts Wegmans store, which caused a great fuss among the store’s “fans,” was, in large part, due to the inability to respond quickly enough to consumers. Store personnel couldn’t break off enough time from their other roles to constantly monitor the page, Wegmans spokeswoman Jo Natale says, allowing comments to sit unanswered – a no-no in the world of social media.


“Our top priority has always been, and will continue to be, providing incredible service to customers who shop in our stores,” she says. “And it isn’t as though there aren’t other avenues for folks to connect with us if they have a question or concern.”


As much as customers expressed surprise and dissatisfaction at the decision, Natale says, it came down to a decision that if the store couldn’t serve the Facebook page at a level it felt was expected that it shouldn’t do it at all.


“They quickly discovered, once the store opened and got very, very busy, that it wasn’t so easy to stay on top of comments or to find the time to post,” Natale says. “In a retail operation like ours, there isn’t anyone sitting at a PC or checking a mobile device throughout the day. It’s a fast-paced business that requires our people to be on the floor serving customers.”


(The author is a Reuters contributor. The opinions expressed are his own)


(Follow us @ReutersMoney or at http://www.reuters.com/finance/personal-finance; Editing by Beth Pinsker and Tim Dobbyn)


Social Media News Headlines – Yahoo! News





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Alicia Keys first Sundance as producer, composer


PARK CITY, Utah (AP) — It's a busy week for Alicia Keys.


The singer-songwriter is set to perform at three events during Barack Obama's presidential inauguration on Monday. She'll sing the National Anthem at the Super Bowl on Feb. 3. And meanwhile, she popped over to Park City, Utah, to debut her first film as executive producer and composer.


The 32-year-old entertainer is attending her first Sundance Film Festival to support "The Inevitable Defeat of Mister and Pete," which premiered Friday. Directed by George Tillman, Jr., the film tells the story of two young boys who survive the streets of Brooklyn on their own.


Keys said she was drawn to the film because of its "authentic" story and its setting in her hometown of New York City.


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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control



Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”


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Boeing Closer to Answer on 787s, but Not to Getting Them Back in Air


Issei Kato/Reuters


Safety inspectors looked over a 787 on Friday in Japan. The plane made an emergency landing after receiving a smoke alarm.







With 787 Dreamliners grounded around the world, Boeing is scrambling to devise a technical fix that would allow the planes to fly again soon, even as investigators in the United States and Japan are trying to figure out what caused the plane’s lithium-ion batteries to overheat.




Ray LaHood, the transportation secretary, made it clear on Friday that a rapid outcome was unlikely, saying that 787s would not be allowed to fly until the authorities were “1,000 percent sure” they were safe.


“Those planes aren’t flying now until we have a chance to examine the batteries,” Mr. LaHood told reporters. “That seems to be where the problem is.”


The Federal Aviation Administration on Wednesday took the rare step of grounding Boeing’s technologically advanced 787s after a plane in Japan made an emergency landing when one of its two lithium-ion batteries set off a smoke alarm in the cockpit. Last week at Boston’s Logan Airport, a battery ignited in a parked 787.


The last time the government grounded an entire fleet of airplanes was in 1979, after the crash of a McDonnell Douglas DC-10.


The grounding comes as the United States is going through a record stretch of safe commercial jet flying: It has been nearly four years since a fatal airline crash, with nearly three billion passengers flying in that period. The last airliner crash, near Buffalo, N.Y., came after a quiet period of two and a half years, which suggests a declining crash rate.


Investigators in Japan said Friday that a possible explanation for the problems with the 787’s batteries was that they were overcharged — a hazard that has long been a concern for lithium-ion batteries. But how that could have happened to a plane that Boeing says has multiple systems to prevent such an event is still unclear.


Given the uncertainty, it will be hard for federal regulators to approve any corrective measures proposed by Boeing. To lift the grounding order, Boeing must demonstrate that any fix it puts in place would prevent similar episodes from happening.


The government’s approach, while prudent, worries industry officials who fear it does not provide a rapid exit for Boeing.


The F.A.A. typically sets a course of corrective action for airlines when it issues a safety directive. But in the case of the 787, the government’s order, called an emergency airworthiness directive, required that Boeing demonstrate that the batteries were safe but did not specify how.


While the government and the plane maker are cooperating, there are few precedents for the situation.


“Everyone wants the airplane back in the air quickly and safely,” said Mark V. Rosenker, a former chairman of the National Transportation Safety Board. “But I don’t believe there will be a corner cut to accomplish that. It will happen when all are confident they have a good solution that will contain a fire or a leak.”


Boeing engineers, Mr. Rosenker said, are working around the clock. “I bet they have cots and food for the engineers who are working on this,” he said. “They have produced a reliable and safe aircraft and as advanced as it is, they don’t want to put airplanes in the air with the problems we have seen.”


The government approved Boeing’s use of lithium-ion batteries to power some of the plane’s systems in 2007, but special conditions were imposed on the plane maker to ensure the batteries would not overheat or ignite. Government inspectors also approved Boeing’s testing plans for the batteries and were present when they were performed.


Even so, after the episode in Boston, the federal agency said it would review the 787’s design and manufacturing with a focus on the electrical systems and batteries. The agency also said it would review the certification process.


The 787 has more electrical systems than previous generations of airplanes. These systems operate hydraulic pumps, de-ice the wings, pressurize the cabin and handle other tasks. The plane also has electric brakes instead of hydraulic ones. To run these systems, the 787 has six generators with a capacity equivalent to the power needed by 400 homes.


Nicola Clark and Christopher Drew contributed reporting.



This article has been revised to reflect the following correction:

Correction: January 19, 2013

An earlier version of this article misstated how regulators responded to small cracks found in the wings of the Airbus A380, and when those cracks were found. Regulators required inspections, followed by fixes, last year, not two years ago; the plane was not grounded.



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As Rescue Operation Continues in Algeria, Fate of Hostages Remains Unclear


British Petroleum, via European Pressphoto Agency


The remote In Amenas natural gas field in Algeria, the site of a terrorist attack and the taking of hostages on Wednesday.







BAMAKO, Mali — Dozens of hostages may still be held by militants at a remote gas field facility in the Algerian desert on Friday, according to Algeria’s state-run news agency, a day after the nation’s military launched an intense assault that freed captives, killed kidnappers but also left some hostages dead.




The agency said that the country’s special forces were seeking to reach a “peaceful solution” with a “terrorist group” that was still holding hostages at the gas field. It also gave a new sense of how many people may have been at the facility when the militants seized it on Wednesday, asserting that nearly 650 had managed to leave the site since then, including 573 Algerians and most of the 132 foreigners it said had been abducted.


But that still left many people unaccounted for, adding to the global concern about the fate of the hostages, who come from as many as 10 different nations. Estimates of the foreign casualties have ranged from 4 to 35, though the Algerian government has still not released any official tallies, leaving governments around the world scrambling for information.


Intensifying the uncertainties, a spokesman for the militants, who belong to a group called Al Mulathameen, said Friday that they planned further attacks in Algeria, according to a report by the Mauritanian news agency ANI, which maintains frequent contact with militant groups in the region. The spokesman called upon Algerians to “keep away from the installations of foreign companies, because we will suddenly attack where no one would expect it,” ANI reported.


A United States Africa Command spokesman, Ben Benson, said an Air Force aircraft had landed at an airstrip near the facility and was evacuating Americans and people from other countries involved in the hostage event. He said they would be flown to an American facility in Europe.


The Algerian military operation began on Thursday without consultation with the foreign governments whose citizens worked at the plant. It has been marked by a fog of conflicting reports, compounded by the remoteness of the gas plant, near a town called In Amenas hundreds of miles across the desert from the Algerian capital, Algiers, and close to the Libyan border.


Algeria’s state radio, citing an official source, reported on Friday that 18 militants had been killed, the first precise death count offered by state media. The state news agency also suggested that hundreds of civilians “had been freed,” though many of the employees inside the sprawling facility may have simply been on site at the time of the militant assault and were not necessarily being held by the kidnappers.


Speaking in Parliament, Prime Minister David Cameron of Britain said the number of Britons at risk was estimated late Thursday at “less than 30.” That number has now been “quite significantly reduced,” he said, adding that he could not give details because the crisis is continuing.


Offering a broad account of Algeria’s handling of the operation, he told lawmakers: “We were not informed of this in advance. I was told by the Algerian prime minister while it was taking place. He said that the terrorists had tried to flee, that they judged there to be an immediate threat to the lives of the hostages and had felt obliged to respond.”


He added: “This is a large and complex site and they are still pursuing terrorists and possibly some of the hostages in other areas of the site. The Algerian prime minister has just told me this morning that they are now looking at all possible routes to resolving this crisis.”


BP, the British-based energy giant that jointly controls the gas installation in Algeria, said in a statement on Friday that there was a “small number of BP employees” at the facility “whose current location and situation remain uncertain.” The company said it flew out 11 of its staff members along with hundreds of employees of other oil companies on Thursday.


The Japanese government said on Friday that three of its citizens had escaped but that 14 were still unaccounted for. On Friday, Defense Secretary Leon E. Panetta met with Mr. Cameron in London as Pentagon officials were continuing to try to learn details about the raid.


“We are working around the clock to ensure the safe return of our citizens and we will continue to be in close consultation with the Algerian government,” Mr. Panetta said in a speech in London before meeting with Mr. Cameron.


Adam Nossiter reported from Bamako and Alan Cowell and Scott Sayare from Paris. Reporting was contributed by Rick Gladstone from New York; Elisabeth Bumiller, Julia Werdigier and John F. Burns from London; Eric Schmitt and David E. Sanger from Washington; Martin Fackler and Hiroko Tabuchi from Tokyo; and Mayy El Sheikh from Cairo.



Read More..

Why Won’t the NRA Say Anything About Its (Possibly Fake) New Video Game?






If this app is, in fact, an unlicensed kind of hoax using the NRA acronym without permission, you’d think the NRA might want to squash the brand association quickly. Despite the gun lobby’s slow response to the Newtown massacre, the NRA isn’t afraid of issuing cease and desists or suing President Obama, the District of Columbia, or the Department of Justice.


RELATED: One Month After Newtown, NRA Releases First-Person Shooter Game with AK-47






What’s more, as ArsTechnica’s Kyl Orland points out, the NRA’s earlier efforts at officially licensed video games have been successful in the lobby’s seemingly unending efforts to the turn gun-violence debate away from guns and toward other industries accused of stoking violence. Orland writes:



So Practice Range fits right into the NRA’s arguments about video games’ insidious effects on our society. “There’s nothing wrong with guns in video games per se,” the organization seems to be saying; “the problem is the way those guns are used by most of the big-money game industry in service of ultra-violent revenge fantasies. If only the game industry could use its immense influence and power to promote responsible, safe use of guns, as we have with our humble app, the world might be a different place!”



If the app isn’t the NRA’s, then the app and the controversy surrounding it would seem to present an opportune time for NRA CEO Wayne LaPierre to hammer home his point about violence in video games. In his notorious post-Newtown press conference, LaPierre in the days following blamed the gaming industry for mass violence:



And here’s another dirty little truth that the media try their best to conceal: There exists in this country a callous, corrupt and corrupting shadow industry that sells, and sows, violence against its own people.



The video-game industry has been reeling as it struggles to put together a lobbying defense of its own. Of course, all these theories would be moot if the app is indeed the NRA’s. As of today, the app is still up in the iTunes Store.


Gaming News Headlines – Yahoo! News





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Playwright Anna Deavere Smith wins Gish Prize


NEW YORK (AP) — Anna Deavere Smith has won one of the largest and most prestigious awards in the arts.


The committee that awards the Dorothy and Lillian Gish Prize announced Friday that the actress and playwright known for pioneering a form of theatrical journalism is this year's winner.


"Anna opens our eyes, ears and minds to some of the most challenging aspects of our lives, and in so doing helps give others the courage to do the same," said Darren Walker, of the Ford Foundation, who was on the selection committee.


The Gish Prize, now in its 19th year, recognizes leading artists in such fields as drama, music and dance, as well as literature. Smith joins past winners including Bob Dylan, Arthur Miller, Chinua Achebe and Robert Redford. The prize, from silent film stars Dorothy and Lillian Gish, comes with $300,000.


In a statement, Smith said: "I am deeply honored and can't imagine a greater honor than having my name linked with the incomparable Dorothy and Lillian Gish."


Smith creates one-woman documentary-style works such as "Fires in the Mirror" about a 1991 riot in New York and "Twilight: Los Angeles, 1992," about the 1992 Rodney King case. She recently tackled health care in "Let Me Down Easy."


As an actress, Smith has appeared on TV in "Nurse Jackie" and "The West Wing" and in films including "The American President," ''The Human Stain," ''Life Support" and "Rachel Getting Married."


Among her other honors are a MacArthur Foundation "genius grant," two Tony Award nominations, an Obie and a Drama Desk Award. Her writings include the book "Talk to Me: Listening Between the Lines and Letters to a Young Artist."


___


Online:


http://www.gishprize.com


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The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring


Andrea Mohin/The New York Times


John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.







Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.





The Neediest CasesFor the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.


Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.








2012-13 Campaign


Previously recorded:

$6,865,501



Recorded Wed.:

16,711



*Total:

$6,882,212



Last year to date:

$6,118,740




*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.





“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”


Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.


Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.


The operation was a success, but then came the bills.


“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.


The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.


The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.


“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”


When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.


Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.


Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.


On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.


Neither one knows what the next step will be, however, and the stress has been eating at them.


“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”


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Regulators Around the Globe Ground Boeing 787s


Kyodo News, via Reuters


The 787 that made an emergency landing in Japan on Wednesday. All 137 passengers and crew members were evacuated safely.












Regulators around the globe on Thursday ordered the grounding of Boeing 787s until they could determine what caused a new type of battery to fail on two planes in recent days, resulting in an emergency landing Wednesday and a fire last week.




The directives in Europe, India and Japan followed an order Wednesday by the U.S. Federal Aviation Administration grounding planes operated by American carriers.


The decisions are a result of incidents involving a 787 that was parked in Boston on Jan. 7 and another in Japan that had to make an emergency landing Wednesday morning after an alarm warning of smoke in the cockpit.


In Japan on Thursday, the Transportation Ministry issued a formal order to ground all 787s until concerns over the aircraft’s battery systems are resolved. All Nippon Airways and Japan Airlines on Wednesday had voluntarily grounded their 787s, leading to more than two dozen canceled flights.


European safety regulators also said they would ground Dreamliners, which would affect LOT of Poland, the only carrier that operates the jets in that region. A spokesman for the European Aviation Safety Agency, based in Cologne, said that it was prepared to provide some of its own experts to support the Federal Aviation Administration’s investigation but that no such assistance had been requested yet.


In India, the aviation regulator grounded all six of the 787s operated by the state-owned carrier Air India.


LAN Airlines of Chile said it was following suit, acting in coordination with the Chilean Aeronautical Authority.


And on Thursday, Qatar Airways said it would follow the F.A.A.’s decision and immediately ground its five 787s.


The F.A.A.’s emergency directive, issued Wednesday night, initially applied to United Airlines, the only American carrier using the new plane so far, with six 787s.


Boeing, based in Chicago, has a lot riding on the 787, and its stock dropped nearly 3.4 percent Wednesday to $74.34. The company has outlined ambitious plans to double its production rate to 10 planes a month by the end of 2013. It is also starting to build a stretch version and considering an even larger one after that.


“We are confident the 787 is safe and we stand behind its overall integrity,” Jim McNerney, Boeing’s chief executive, said in a statement.


The grounding — an unusual action for a new plane — focuses on one of the more risky design choices made by Boeing, namely to make extensive use of lithium-ion batteries aboard its airplanes for the first time.


Until now, much of the attention on the 787 was focused on its lighter composite materials and more efficient engines, meant to usher in a new era of more fuel-efficient travel, particularly over long distances. The batteries are part of an electrical system that replaces many mechanical and hydraulic ones that are common in previous jets.


The 787’s problems could jeopardize one of its major features, its ability to fly long distances at a lower cost. The plane is certified to fly 180 minutes from an airport. The U.S. government is unlikely to extend that to 330 minutes, as Boeing has promised, until all problems with the plane have been resolved.


For Boeing, “it’s crucial to get it right,” said Richard L. Aboulafia, an aviation analyst at Teal Group in Fairfax, Virginia. “They’ve got a brief and closing window in which they can convince the public and their flying customers that this is not a problem child.”


In Japan on Thursday, government investigators examined the 787 that made the emergency landing. Footage on the public broadcaster NHK showed officials removing a charred and swollen lithium-ion battery pack from the front of the plane.


Corrosive liquid appeared to have leaked out of the batteries, leaving streaks on their blue casing, said Hideo Kosugi, a safety official who is head of the inquiry. Investigators also found black discolorations outside exhaust vents on the plane, which suggested that there had been smoke inside the aircraft at one point.


“The batteries have retained their basic shape, but are black all over,” Mr. Kosugi said. Something caused the battery to overheat and spew liquid, he added, “but we still do not know what is the cause.”


This article has been revised to reflect the following correction:

Correction: January 17, 2013

An earlier version of this article said an emergency landing of the 787 took place on Monday. It was Wednesday.



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PlayStation 4 and Xbox 720 could cost just $350, expected to launch this fall






Sony (SNE) and Microsoft (MSFT) are both expected to announce their next-generation gaming consoles at the Electronics Entertainment Expo in June, or even a little before then. While we have seen rumored specs for both the PlayStation 4 and the Xbox 720, one thing that has escaped us is a possible price tag. In a research note to investors on Monday, Colin Sebastian of Baird Equity Research suggested that both consoles could retail for between $ 350 and $ 400 in the U.S., Games Industry International reported. The analyst revealed that during the Consumer Electronics Show last week he spent time “with a number of companies involved in video game development and distribution,” who informed him that the next-generation consoles will be “largely built from ‘off the shelf’ high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing, and broad multi-media capabilities.”


[More from BGR: HTC One SV review]






Sebastian believes that “a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon.” In his opinion, there will be less of a “learning curve” for software developers compared to completely new technology, and the cost of production and retail price points should be lower than prior console launches.


[More from BGR: Dell’s bold plan to reinvent itself: A USB-sized PC that gives access to Windows, Mac OS, Chrome OS]


Microsoft launched the Xbox 360 in 2005 with a top end price of $ 399, while Sony released the PlayStation 3 a year later for $ 499 and $ 599 respectively.


“It will be easier to build online services around PC chip architecture, including flexible business models (free-to-play, subscriptions) and multi-media (over the top) content offerings,” the analyst added. “For Microsoft, this design will also allow for more integration with Windows 8 and Windows Mobile devices.”


Sebastian expects Sony to launch the PlayStation 4 in October and Microsoft to launch the Xbox 720 in November.


This article was originally published on BGR.com


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Lance Armstrong left it 'all on table' with Oprah


All the speculation is about to end. In a matter of hours, viewers can judge for themselves whether Lance Armstrong told the truth this time.


Armstrong's confession to Oprah Winfrey about using performance-enhancing drugs to win the Tour de France a record seven times in a row will be televised at 9 p.m. Thursday, the first segment of a two-part special on the Oprah Winfrey Network. Since word of his confession during Monday's taping in Austin, Texas, was first reported by The Associated Press, there has been no shortage of opinions or advice on what Armstrong should say.


The International Olympic Committee didn't wait to listen.


The IOC on Wednesday stripped Armstrong of his 2000 bronze medal, sending him a letter asking him to return it, according to officials who spoke on condition of anonymity because the decision had not been announced.


For others who will tune in Thursday, it's not just what Armstrong said that matters. How he said it, whether angry, tearful or matter-of-fact, will be judged as well.


"I left it all on the table with her and when it airs the people can decide," Armstrong said of his interview in a text sent to the AP on Wednesday. He dismissed a story earlier in the day that described him as "not contrite" when he acknowledged doping while dominating the cycling world.


Livestrong, the cancer charity Armstrong founded in 1997 and was forced to walk away from last year, said in a statement it expected him to be "completely truthful and forthcoming." A day earlier, World Anti-Doping Agency director general David Howman said nothing short of a confession under oath — "not talking to a talk-show host" — could prompt a reconsideration of Armstrong's lifetime ban from sanctioned events. And Frankie Andreu, a former teammate that Armstrong turned on, said the disgraced cyclist had an obligation to tell all he knew and help clean up the sport.


"I have no idea what the future holds other than me holding my kids," Armstrong said in the text.


Armstrong has held conversations with officials from the U.S. Anti-Doping Agency, including a reportedly contentious face-to-face meeting with USADA chief executive Travis Tygart near the Denver airport. It was USADA's 1,000-page report last year, including testimony from nearly a dozen former teammates, that portrayed Armstrong as the leader of a sophisticated doping ring that propelled the U.S. Postal Service team to title after title at the Tour de France. In addition to the lifetime ban, Armstrong was stripped of all seven wins, lost nearly all of his endorsements and was forced to cut ties with Livestrong.


According to a person with knowledge of the situation, Armstrong has information that might lead to his ban being reduced to eight years. That would make him eligible to compete in elite triathlons, many of which are sanctioned under world anti-doping rules, in 2020, when Armstrong will be 49. He was a professional athlete in the three-discipline sport as a teenager, and returned to competition after retiring from cycling in 2011.


That person also said the bar for Armstrong's redemption is higher now than when the case was open, a time during which he refused to speak to investigators. The person spoke on condition of anonymity because he was discussing a confidential matter.


Armstrong, who always prized loyalty on his racing teams, now faces some very tough choices himself: whether to cooperate and name those who may have aided, abetted or helped cover up the long-time use of PEDs.


Armstrong left his hometown of Austin, where the interview was taped at a downtown hotel, and is in Hawaii. He is named as a defendant in at least two pending lawsuits, and possibly a third. The Justice Department faces a Thursday deadline on whether to join a whistle-blower lawsuit filed by former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping.


That suit alleges Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. Armstrong could be required to return substantial sponsorship fees and pay a hefty fine. The AP reported earlier that Justice Department officials were likely to join the lawsuit.


___


Jim Litke reported from Chicago, Jim Vertuno from Austin.


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The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

  1. Their Social Security number.
  2. The 12-digit federal benefit number found on their checks.
  3. The amount of the most recent check.
  4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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DealBook: H.P. Said to Have Suitors for Two Units

Hewlett-Packard has received a number of inquiries from would-be buyers for its Autonomy and Electronic Data Systems units in recent weeks, though the technology company is not interested in selling at the moment, a person briefed on the matter said on Wednesday.

The calls from potential suitors and bankers picked up after H.P. filed its annual report with regulators on Dec. 28, said the person, who did not want to be identified because management deliberations were confidential.

In the securities filing, the company said, “We also continue to evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives.”

That is standard legal boilerplate. But H.P. has been struggling with poor performance at both Autonomy and E.D.S., having significantly written down the value of those acquisitions.

The company has also claimed to have found accounting and disclosure issues at Autonomy, and has forwarded findings from an internal inquiry to securities regulators in the United States and the division’s home in Britain.

Shares of H.P. rose 4 percent on Wednesday after The Wall Street Journal reported news of the expressions of interest. Over the last 12 months, the shares have fallen 35 percent.

But H.P.’s management team, led by Meg Whitman, is not interested in selling what it considers to be core businesses. Instead, the company intends to focus on developing its enterprise operations, the person said.

The inquiries may also have been stoked by the sudden flurry of news coverage surrounding a potential leveraged buyout of Dell. That company still appears to be closing in on a potential deal to sell itself to a consortium that includes its founder, Michael S. Dell, and the investment firm Silver Lake, in the biggest leveraged buyout in more than five years.

Advisers to Dell and Silver Lake are still negotiating a number of elements in what is proving to be a complicated deal, though they have made advancements, according to a person briefed on the matter who did not want to be identified because the talks were private. A potential takeover may be priced around $14 a share, valuing the company at more than $24 billion.

Mr. Dell is expected to contribute his roughly 16 percent stake to a leveraged buyout. And Silver Lake has been in talks with potential partners, including sovereign wealth funds like Temasek of Singapore, about contributing additional capital, this person said.

Banks are also working on lining up the financing necessary for a deal, which could reach $15 billion. While an enormous amount of money, bankers are betting that debt investors will clamor for the financing package, hoping to reap yields that are higher than those for Treasury bonds.

Still, this person cautioned that the discussions could fall apart.

Confronting H.P. and Dell is the grinding pressure on both companies’ personal computer businesses, where profit margins have declined in the last few years as competition toughened.

The two tech companies are trying to decrease their dependence on making PCs.

That move had prompted H.P. to buy both E.D.S. and Autonomy, paying more than $20 billion for the pair.

A version of this article appeared in print on 01/17/2013, on page B4 of the NewYork edition with the headline: Two Units Of Hewlett Reportedly Draw Suitors.
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The Lede Blog: Updates on the Gun Violence Debate

The Lede is following the debate on gun violence in the wake of the shootings in Newtown, Conn., with reports from our correspondents and from around the Web. On Wednesday, President Obama is expected to announce a push for new laws to restrict the availability of guns and to embrace a series of executive actions that he can take without seeking congressional approval.
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Leaked BlackBerry 10 sales manual reveals new images and details







The buzz continues to mount leading up to the January 30th unveiling of Research In Motions’s (RIMM) next-generation BlackBerry 10 platform, but we’re not sure how much is left to learn. Many BlackBerry 10 features have already been announced, we’ve seen RIM’s first two next-generation handsets — the BlackBerry Z10 and the BlackBerry X10 — a number times, and now Rogers’ internal sales manual for BlackBerry 10 devices has leaked thanks to CrackBerry. The manual is packed full of images and it also confirms some specs reported a few months ago, and the full document is embedded at the source link below. RIM’s next-generation operating system and handsets will be unveiled during a press conference on January 30th, and BGR will be on hand reporting live.


[More from BGR: Dell’s bold plan to reinvent itself: A USB-sized PC that gives access to Windows, Mac OS, Chrome OS]






This article was originally published on BGR.com


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Director defends 'Zero Dark Thirty' torture scenes


LOS ANGELES (AP) — Director Kathryn Bigelow defends torture scenes in her Oscar-nominated film "Zero Dark Thirty," saying torture was an undeniable part of the hunt for Osama bin Laden after the terrorist attacks on Sept. 11, 2001.


The film opens by declaring it's based on firsthand accounts of actual events.


But Sen. Dianne Feinstein, D-Calif., and other lawmakers criticized the film as misleading for suggesting torture led to the location of bin Laden. Lawmakers asked Sony Pictures to attach a disclaimer that the film is fictional.


"Experts disagree sharply on the facts and particulars of the intelligence hunt, and doubtlessly that debate will continue," Bigelow wrote in the Los Angeles Times on Wednesday.


The comments were Bigelow's most explicit reaction to the controversy so far.


"As for what I personally believe, which has been the subject of inquiries, accusations and speculation, I think Osama bin Laden was found due to ingenious detective work," she continued. "Torture was, however, as we all know, employed in the early years of the hunt. That doesn't mean it was the key to finding bin Laden. It means it is a part of the story we couldn't ignore."


"War, obviously, isn't pretty, and we were not interested in portraying this military action as free of moral consequences," she added.


Bigelow wrote that torture was part of the story and the backlash may be misdirected.


"I do wonder if some of the sentiments alternately expressed about the film might be more appropriately directed at those who instituted and ordered these U.S. policies, as opposed to a motion picture that brings the story to the screen," she wrote.


Last week, Sony Pictures co-chair Amy Pascal responded forcefully to a "Zero Dark Thirty" anti-Oscar campaign waged by Ed Asner and other Hollywood actors, saying "to punish an artist's right of expression is abhorrent."


Bigelow and "Zero Dark Thirty" screenwriter Mark Boal had said previously that they "depicted a variety of controversial practices and intelligence methods that were used in the name of finding bin Laden.


"The film shows that no single method was necessarily responsible for solving the manhunt, nor can any single scene taken in isolation fairly capture the totality of efforts the film dramatizes," they said.


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Phys Ed: Exercise Can Boost Flu Shot's Potency

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. And for maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people’s immune systems produce fewer antibodies to the influenza virus than others’ do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, elderly adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the biceps curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

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DealBook: Goldman Sachs Earnings Soar

9:46 a.m. | Updated

Goldman Sachs on Wednesday reported a fourth-quarter profit of $2.89 billion, or $5.60 a share, a significant jump from the period a year earlier.

The per-share figure is after the company paid preferred dividends, and comes in well ahead of analysts’ expectations of $3.78 a share, according to Thomson Reuters.

Analysts had been anticipating a fairly decent quarter for Goldman, and its results were buoyed by strong trading and investment banking results and lower compensation costs. In the fourth quarter of 2011, the bank earned $1.01 billion, or $1.84 a share.

The bank’s most recent results reflect a continued focus on cutting expenses as well as a number of investing gains, including $485 million from debt and security loans, the company said.

“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” Goldman’s chairman and chief executive, Lloyd C. Blankfein, said in a news release.

The results had an immediate effect on the firm’s stock, sending it up 2.7 percent in early morning trading.

Over all, the firm produced $9.24 billion in revenue in the quarter ended Dec. 31, up 53 percent from the same quarter in 2011. That also beat analysts’ estimates of quarterly revenue of $7.91 billion.

Goldman also revealed how much it had set aside for compensation, paying out $12.9 billion in 2012, an average of $399,506 to each of its 32,400 employees. This represented 37.9 percent of Goldman’s revenue for the year.

Over the last year, Goldman has reduced its payroll by 900 people. In 2011, the bank set aside $12.22 billion, or 42.4 percent, of its 2011 net revenue to pay compensation and benefits for its employees.

Goldman partners, a small group of top managers at the firm, will learn their 2012 compensation packages on Wednesday. The vast majority of employees, however, will be told what their bonuses will be on Thursday in what is known at Goldman as compensation communication day. These bonuses are on top of annual salaries, which can range from roughly $100,000 to $2 million for executives like Mr. Blankfein.

Bonuses on Wall Street — both the size of them and how they are paid — always draw scrutiny. Goldman Sachs decided this week not to delay the payment of bonuses to its staff members in Britain, a move that would have helped investment bankers and other highly paid employees benefit from a lower income tax rate.

Goldman Sachs was already drawing attention in the United States after it distributed $65 million in stock to 10 senior executives in December instead of January, when the firm typically makes such awards. That move helped the executives avoid the higher tax rates that will now be imposed on income of $450,000 or more.

The firm’s annual return on equity was 10.7 percent, up from 2011, when it was 5.8 percent. While this is far below its performance in boom years like 2006, when its return on equity was 41.5 percent, it is an achievement that it has broken above 10 percent.

Banks continue to fight difficult economic conditions at home and abroad, and Goldman’s results are still well below what it was producing before the financial crisis. Those outsize profits, however, were fueled by borrowing on credit and selling mortgage-linked products, and they have dwindled. New regulations aimed at reining in risk-taking have also reduced the profitability of certain businesses.

Revenue from investment banking came in at $1.41 billion, up 64 percent from the year-ago period.

Net revenue in Goldman’s powerful division that trades bonds, currencies and commodities was $2.04 billion, up 50 percent from levels in the quarter a year earlier. The firm said those results reflected an increase in mortgage revenues, which were “significantly higher” when compared with 2011.

The firm’s investing and lending division also had a stronger-than-expected quarter, posting revenue of $1.97 billion, up 126 percent from year-ago levels. The firm said this unit benefited from an increase in equity prices in Asia and Europe and a number of one-time gains. For instance, it logged a gain of $334 million from its investment in the Industrial and Commercial Bank of China, a strategic investment the firm made in 2006. It also had gains from the debt securities and loans it holds.

Goldman is one of a number of banks releasing earnings this week. JPMorgan Chase also Wednesday weighed in with its results, reporting a strong profit of $5.7 billion for the fourth quarter, up 53 percent from the previous year.

These positive results put pressure on Morgan Stanley to post good results when it releases its fourth quarter numbers on Friday. Analysts polled by Thomson Reuters are expecting Morgan Stanley to report earnings of 27 cents a share, up from a loss of 14 cents in the year-ago period.

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The Caucus: In Debt Game, an Early Move From Obama

In a high-stakes negotiation, the most important moves often come not in the end game but at the very start, when one side or the other prevails in defining what is on the table. If you listened closely, you might have heard President Obama try to do just that in his news conference on Monday, when he suggested that Washington will have tamed the government’s debt problems if the two parties can agree on another $1.5 trillion or so in spending cuts and tax increases.

Fiscal hawks and small-government conservatives say the White House is setting the bar for fiscal responsibility way too low and just kicking the can down the road again on hard decisions that will only become more painful as time goes by. But Mr. Obama appeared intent on establishing that he was just one more deal away from putting the government back on sound footing, if only Republicans would go along.

His numbers are relatively straightforward. During his re-election campaign he committed himself to $4 trillion in deficit reduction over 10 years — he referred to that figure on Monday as the “consensus” on what is necessary “to stabilize our debt and deficit” — including savings he and Congress had already agreed to. Altogether, they have enacted roughly $2.5 trillion in budget cuts and tax increases so far.

At around $4 trillion in deficit reduction, the United States would have a good shot at achieving what Mr. Obama and a growing number of Democrats consider to be a politically plausible and economically meaningful outcome: holding the national debt steady for a decade or so at under 75 percent of gross domestic product. (As recently as last summer the Congressional Budget Office was projecting a debt-to-G.D.P. ratio climbing into the 80s by the end of this decade if the government did not act to cut spending further and raise more tax revenue.)

Banking that last $1.5 trillion in budget savings would no doubt be achieved only after considerable partisan warfare, and the task will be that much tougher because it is tied up in the showdown over whether Congress will raise the debt ceiling. But if the president can threaten, cajole and compromise his way to one more big deficit-reduction pact, the job of putting the nation’s fiscal house in order, in his telling, would be more or less complete.

Best of all, from a Democratic perspective, reaching that goal would not require immediate deep cuts to Medicare or Social Security or a fundamental rethinking of the social welfare compact.

“If we combine a balanced package of savings from spending on health care and revenues from closing loopholes, we can solve the deficit issue without sacrificing our investments in things like education that are going to help us grow,” he said, referring to his existing proposals for modest trims to Medicare and tax-code changes that would generate more revenue from the wealthy.

“Solve” might be too strong a term for the impact on the nation’s fiscal challenges, and there are a lot of technical assumptions in Mr. Obama’s numbers that might prove overly optimistic. But if the United States does not suffer another deep recession, reaching $4 trillion in deficit reduction could buy Washington a decade or so to experiment with ways to curb the main driver of fiscal pressures — rising health care costs. The two parties might be able to nurture greater consensus during that period on whether or how to reshape the entitlement programs to make them sustainable for decades to come.  And if the country was especially lucky, a burst of economic growth could wipe away some portion of the remaining long-term problem.

But Mr. Obama’s effort to define success on his terms is coming up against two primary counterarguments as the White House and Congress hurtle toward the next budget showdown in coming weeks.

Fiscal hawks — those most concerned with the potential economic and financial impact of chronic deficits — say Mr. Obama’s approach is merely a short-term patch, sufficient only to create a 10-year illusion that the nation has made the hard decisions necessary to maintain long-term solvency. In their view, bolder action is needed now to assure that the debt does not spiral out of control in the following decade as the full costs of providing for an aging population put vastly greater strains on the government’s finances.

“Getting some of the easier reforms is not victory, not even close,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget and the leader of Fix the Debt, advocacy groups dedicated to greater budget austerity. “I’m incredibly worried about the argument that we don’t need to do anything more quickly.”

Then there are the small-government conservatives. They want lower deficits, but they also want to lead the nation to a philosophical shift away from what they see as a society too dependent on entitlements and an economy being suffocated by the growth of government.

“Government can’t solve our problems,” said Chris Chocola, president of the Club for Growth, a conservative advocacy group. “We can’t tax our way out of this. We need to structurally reform the way we do things.”

The limits of Mr. Obama’s case are laid out in a recent report  from the Center on Budget and Policy Priorities, a liberal research organization. The center’s report calculated that Congress and Mr. Obama could stabilize the debt at 73 percent of G.D.P. by later in this decade by agreeing on another $1.2 trillion in tax increases and/or spending cuts (a change that would also yield an additional $200 billion in savings over a decade by reducing what the government would otherwise have to pay in interest on the debt).

Stabilizing the debt during periods of economic growth, the report said, is the “minimum appropriate budget policy,” since any nation needs to maintain the flexibility to borrow when times get tough. At 73 percent, the ratio would still be higher than the level recommended for healthy industrial economies by institutions like the International Monetary Fund; the Bowles Simpson report two years ago recommended policy changes that would have put the debt ratio on a declining path for decades to come. And even achieving stability at 73 percent would be a temporary victory.

“In ensuing decades, the aging of America’s population and projected increases in per-capita health care costs — which are likely to rise faster than per-capita G.D.P. — will put considerable pressure on federal health and retirement programs,” the center’s report said, “returning the budget to an unsustainable path of rising debt as a share of the economy.”


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Tata Consultancy says demand in U.S. strong across segments






MUMBAI/BANGALORE (Reuters) – India’s top software services provider Tata Consultancy Services Ltd (TCS) said demand in the key U.S. market is strong across its business segments, with regional banks stepping up spending on technology.


The Mumbai-based company said on Monday that profit jumped 23 percent in the quarter ended December, beating analysts‘ expectations. TCS also gave an upbeat growth outlook, sending its shares up the most in more than eight months and prompting analyst upgrades on the stock.






Economic uncertainty in the United States had fuelled investor worry that clients may keep their IT budgets tight and postpone decision-making on technology spending.


“The U.S. is still a growth market,” Chief Financial Officer S Mahalingam told Reuters in an interview at his Mumbai office on Tuesday. “If it sneezes then we have got a big problem. (But) the demand is very good across all segments.”


The United States accounts for about half of TCS’ revenue, compared with more than 60 percent overall for India’s $ 100 billion outsourcing industry.


Banks, insurers and other financial services clients usually account for more than a third of the revenue at companies such as TCS’ rival Infosys Ltd , where better-than-expected results on Friday and an increased revenue outlook powered a 20 percent rise in its shares over two sessions.


“(The) U.S. economy has regional banks as well, and they are starting to spend. So there is growth,” Mahalingam said.


While Monday’s results prompted analysts from HSBC and CLSA to increase their ratings on TCS stock, some analysts said volume growth was not especially impressive.


Volumes, or billable hours, rose 1.25 percent on a sequential basis, while revenue in dollar terms increased 3.3 percent over the September quarter.


“The key disappointment was soft volume growth of 1.25 percent quarter-on-quarter. However, we remain assured by management’s optimistic outlook on FY14 growth,” Nomura analysts wrote in a note to clients.


(Editing by Tony Munroe and Ryan Woo)


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AP NewsBreak: Rewrite for National Book Awards


NEW YORK (AP) — The National Book Awards are getting a rewrite.


New rules announced Tuesday include a "long list" of 10 nominees to be offered for each of the four competitive categories before being narrowed to the traditional five finalists. And the pool of judges will be expanded beyond writers to include critics, booksellers and librarians.


The changes are the most extensive since the mid-1990s for the awards, presented each fall by the National Book Foundation, as the major New York publishers attempt to broaden their appeal. The publishers have been unhappy with the selection of fiction finalists in recent years and the omission of such high-profile works as Jonathan Franzen's "Freedom" and Marilynne Robinson's "Gilead."


The expansion to 10 mirrors a recent change in the Oscars, but foundation board members said they had been looking to Britain's popular Man Booker Prize as a model.


"We just basically borrowed some of their ideas," said foundation board vice president and Grove/Atlantic CEO Morgan Entrekin, citing the Bookers' use of long lists and non-writers as judges. "The Bookers do a fantastic job at getting a conversation going about good books. With the long list, for instance, you get this conversation bubbling up about what made it and then about what doesn't get on the short list."


Entrekin said that some of the recent National Book Award fiction lists, which usually get the most attention, had been "very eccentric" and that allowing critics and booksellers as judges could open up the process. The results, he thinks, will be a "little more mainstream," and less likely to include "a collection of stories by a university press."


"I think there are plenty of awards that recognize those kinds of books," Entrekin said. "If one of those books is truly the best book of the year, that's no problem. But it seemed like the judges had been recognizing lesser-known authors for the sake of choosing lesser-known authors."


The revisions cap a year-long process during which the book foundation hired an independent consulting firm to discuss the awards with booksellers, editors, writers and others in the literary community. Some ideas were rejected, such as allowing celebrities to be judges. The board also voted not to limit the number of books a publisher could submit, a suggested solution to the complaint that the time commitment needed to read hundreds of new works had made it difficult to find judges.


"We're asking people to read a lot of books, but some of these librarians and booksellers we hope to bring in are reading a lot of books anyway," Entrekin said.


"Our mission is to celebrate literature and expand its audience and we chose the path most consistent with our mission," said David Steinberger, chairman of the foundation's board and CEO of the Perseus Books Group.


This fall's long list will be announced Sept. 12, followed by the short list on Oct. 15 and the winners on Nov. 20.


The National Book Awards have changed several times since being founded in 1950. Winners, who have included William Faulkner, Ralph Ellison and Saul Bellow, were originally announced in advance of the ceremony. The number of categories and nominees have expanded and contracted, with 17 finalists for nonfiction in 1957 and more than 20 competitive categories in the early 1980s.


Awards for translation, "contemporary thought" and first novel have been added, then dropped. For a brief time, even the awards' name was changed, to the American Book Awards.


The format had been stable in recent years: competitive awards given for fiction, nonfiction, poetry and young people's literature, and five finalists announced for each category, picked by five-judge panels of writers that change annually. Over the past two decades, the National Book Foundation has attempted to draw more attention to the actual ceremony, bringing in such celebrities as Steve Martin and Andy Borowitz to host and moving the venue from a Marriott hotel ballroom to the more upscale Cipriani Wall Street.


Like the Academy Awards or the Grammys, the National Book Awards ceremony is an industry's showcase for itself, a balance between rewarding excellence and increasing sales that ideally achieves both. Major publishers are directly invested. They're represented on the board of the National Book Foundation and pay thousands of dollars for tables at the ceremony.


Ironically, publishers were happy with the fiction nominees of 2012, the last group to be voted on under the old rules. The finalists included a mix of well-known writers (Louise Erdrich, Junot Diaz, Dave Eggers) and debut novelists (Ben Fountain and Kevin Powers).


For years, foundation executive director Harold Augenbraum has issued oral instructions to judges that they should not pick books based on the publisher or commercial success or the author's reputation. In 2012, the point was reinforced in written guidelines that stated "fame or obscurity, small press or large, should have no bearing" on their decisions.


"I have no idea if that made any difference," Augenbraum said. "In fact, one judge thought the rules meant not to overlook the smaller presses."


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Personal Best: Training Insights From Star Athletes

Of course elite athletes are naturally gifted. And of course they train hard and may have a phalanx of support staff — coaches, nutritionists, psychologists.

But they often have something else that gives them an edge: an insight, or even an epiphany, that vaults them from the middle of the pack to the podium.

I asked several star athletes about the single realization that made the difference for them. While every athlete’s tale is intensely personal, it turns out there are some common themes.

Stay Focused

Like many distance swimmers who spend endless hours in the pool, Natalie Coughlin, 30, used to daydream as she swam laps. She’d been a competitive swimmer for almost her entire life, and this was the way she — and many others — managed the boredom of practice.

But when she was in college, she realized that daydreaming was only a way to get in the miles; it was not allowing her to reach her potential. So she started to concentrate every moment of practice on what she was doing, staying focused and thinking about her technique.

“That’s when I really started improving,” she said. “The more I did it, the more success I had.”

In addition to her many victories, Ms. Coughlin won five medals in the 2008 Beijing Olympics, including a gold medal in the 100-meter backstroke.

Manage Your ‘Energy Pie’

In 1988, Steve Spence, then a 25-year-old self-coached distance runner, was admitted into the United States Long Distance Runner Olympic Development Program. It meant visiting David Martin, a physiologist at Georgia State University, several times a year for a battery of tests to measure Mr. Spence’s progress and to assess his diet.

During dinner at Dr. Martin’s favorite Chinese restaurant, he gave Mr. Spence some advice.

“There are always going to be runners who are faster than you,” he said. “There will always be runners more talented than you and runners who seem to be training harder than you. The key to beating them is to train harder and to learn how to most efficiently manage your energy pie.”

Energy pie? All the things that take time and energy — a job, hobbies, family, friends, and of course athletic training. “There is only so much room in the pie,” said Mr. Spence.

Dr. Martin’s advice was “a lecture on limiting distractions,” he added. “If I wanted to get to the next level, to be competitive on the world scene, I had to make running a priority.” So he quit graduate school and made running his profession. “I realized this is what I am doing for my job.”

It paid off. He came in third in the 1991 marathon world championships in Tokyo. He made the 1992 Olympic marathon team, coming in 12th in the race. Now he is head cross-country coach and assistant track coach at Shippensburg University in Pennsylvania. And he tells his teams to manage their energy pies.

Structure Your Training

Meredith Kessler was a natural athlete. In high school, she played field hockey and lacrosse. She was on the track team and the swimming team. She went to Syracuse University on a field hockey scholarship.

Then she began racing in Ironman triathlons, which require athletes to swim 2.4 miles, cycle 112 miles and then run a marathon (26.2 miles). Ms. Kessler loved it, but she was not winning any races. The former sports star was now in the middle of the pack.

But she also was working 60 hours a week at a San Francisco investment bank and trying to spend time with her husband and friends. Finally, six years ago, she asked Matt Dixon, a coach, if he could make her a better triathlete.

One thing that turned out to be crucial was to understand the principles of training. When she was coaching herself, Ms. Kessler did whatever she felt like, with no particular plan in mind. Mr. Dixon taught her that every workout has a purpose. One might focus on endurance, another on speed. And others, just as important, are for recovery.

“I had not won an Ironman until he put me on that structure,” said Ms. Kessler, 34. “That’s when I started winning.”

Another crucial change was to quit her job so she could devote herself to training. It took several years — she left banking only in April 2011 — but it made a huge difference. Now a professional athlete, with sponsors, she has won four Ironman championships and three 70.3 kilometer championships.

Ms. Kessler’s parents were mystified when she quit her job. She reminded them that they had always told her that it did not matter if she won. What mattered was that she did her best. She left the bank, she said, “to do my best.”

Take Risks

Helen Goodroad began competing as a figure skater when she was in fourth grade. Her dream was to be in the Olympics. She was athletic and graceful, but she did not really look like a figure skater. Ms. Goodroad grew to be 5 feet 11 inches.

“I was probably twice the size of any competitor,” she said. “I had to have custom-made skates starting when I was 10 years old.”

One day, when Helen was 17, a coach asked her to try a workout on an ergometer, a rowing machine. She was a natural — her power was phenomenal.

“He told me, ‘You could get a rowing scholarship to any school. You could go to the Olympics,’ ” said Ms. Goodroad. But that would mean giving up her dream, abandoning the sport she had devoted her life to and plunging into the unknown.

She decided to take the chance.

It was hard and she was terrified, but she got a rowing scholarship to Brown. In 1993, Ms. Goodroad was invited to train with the junior national team. Three years later, she made the under-23 national team, which won a world championship. (She rowed under her maiden name, Betancourt.)

It is so easy to stay in your comfort zone, Ms. Goodroad said. “But then you can get stale. You don’t go anywhere.” Leaving skating, leaving what she knew and loved, “helped me see that, ‘Wow, I could do a whole lot more than I ever thought I could.’ ”

Until this academic year, when she had a baby, Ms. Goodroad, who is 37, was a rowing coach at Princeton. She still runs to stay fit and plans to return to coaching.

The Other Guy Is Hurting Too

In 2006, when Brian Sell was racing in the United States Half Marathon Championships in Houston, he had a realization.

“I was neck-and-neck with two or three other guys with two miles to go,” he said. He started to doubt himself. What was he doing, struggling to keep up with men whose race times were better than his?

Suddenly, it came to him: Those other guys must be hurting as much as he was, or else they would not be staying with him — they would be pulling away.

“I made up my mind then to hang on, no matter what happened or how I was feeling,” said Mr. Sell. “Sure enough, in about half a mile, one guy dropped out and then another. I went on to win by 15 seconds or so, and every race since then, if a withering surge was thrown in, I made every effort to hang on to the guy surging.”

Mr. Sell made the 2008 Olympic marathon team and competed in the Beijing Olympics, where he came in 22nd. Now 33 years old, he is working as a scientist at Lancaster Laboratories in Pennsylvania.


This post has been revised to reflect the following correction:

Correction: January 15, 2013

An earlier version of this post misstated the year in which Steve Spence competed in the Olympic marathon, finishing 12th. It was 1992, not 2004. It also misidentified the institution at which he is a coach. It is Shippensburg University, not Shippensburg College.

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