Diner’s Journal Blog: PepsiCo Will Halt Use of Additive in Gatorade

PepsiCo announced on Friday that it would no longer use an ingredient in Gatorade after consumers complained.

The ingredient, brominated vegetable oil, which was used in citrus versions of the sports drink to prevent the flavorings from separating, was the object of a petition started on Change.org by Sarah Kavanagh, a 15-year-old from Hattiesburg, Miss., who became concerned about the ingredient after reading about it online. Studies have suggested there are possible side effects, including neurological disorders and altered thyroid hormones.

The petition attracted more than 200,000 signatures, and this week, Ms. Kavanagh was in New York City to tape a segment for “The Dr. Oz Show.” She visited The New York Times on Wednesday and while there said, “I just don’t understand why they can’t use something else instead of B.V.O.”

“I was in algebra class and one of my friends kicked me and said, ‘Have you seen this on Twitter?’ ” Ms. Kavanagh said in a phone interview on Friday evening. “I asked the teacher if I could slip out to the bathroom, and I called my mom and said, ‘Mom, we won.’ ”

Molly Carter, a spokeswoman for Gatorade, said the company had been testing alternatives to the chemical for roughly a year “due to customer feedback.” She said Gatorade initially was not going to make an announcement, “since we don’t find a health and safety risk with B.V.O.”

Because of the petition, though, Ms. Carter said the company had changed its mind, and an unidentified executive there gave Beverage Digest, a trade publication, the news for its Jan. 25 issue.

Previously, a spokesman for PepsiCo had said in an e-mail, “We appreciate Sarah as a fan of Gatorade, and her concern has been heard.”

Brominated vegetable oil will be replaced by sucrose acetate isobutyrate, an emulsifier that is “generally recognized as safe” as a food additive by the Food and Drug Administration. The new ingredient will be added to orange, citrus cooler and lemonade Gatorade, as well Gatorade X-Factor orange, Gatorade Xtremo citrus cooler and a powdered form of the drink called “glacier freeze.”

Ms. Carter said consumers would start seeing the new ingredient over the next few months as existing supplies of Gatorade sell out and are replaced.

Health advocates applauded the company’s move. “Kudos to PepsiCo for doing the responsible thing on its own and not waiting for the F.D.A. to force it to,” said Michael Jacobson, executive director of the Center for Science in the Public Interest.

Mr. Jacobson has championed the removal of brominated vegetable oil from foods and beverages for the last several decades, but the F.D.A. has left it in a sort of limbo, citing budgetary constraints that it says keep it from going through the process needed to formally ban the chemical or declare it safe once and for all.

Brominated vegetable oil is banned as a food ingredient in Japan and the European Union. About 10 percent of drinks sold in the United States contain it, including Mountain Dew, which is also made by PepsiCo; some flavors of Powerade and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.

PepsiCo said it had no plans to remove the ingredient from Mountain Dew and Diet Mountain Dew, both of which generate more than $1 billion in annual sales.

Heather White, executive director at the Environmental Working Group, said of PepsiCo’s decision, “We can only hope that other companies will follow suit.” She added, “We need to overhaul how F.D.A. keeps up with the latest science on food additives to better protect public health.”

Ms. Kavanagh agreed. “I’ve been thinking about ways to take this to the next level, and I’m thinking about taking it to the F.D.A. and asking them why they aren’t doing something about it,” she said. “I’m not sure yet, but I think that’s where I’d like to go with this.”


This post has been revised to reflect the following correction:

Correction: January 26, 2013

An earlier version of this article misspelled the surname of the 15-year-old who started a petition on Change.org to end the use of brominated vegetable oil in Gatorade. She is Sarah Kavanagh, not Kavanaugh.

A version of this article appeared in print on 01/26/2013, on page B1 of the NewYork edition with the headline: PepsiCo Will Halt Additive Use In Gatorade.
Read More..

Diner’s Journal Blog: PepsiCo Will Halt Use of Additive in Gatorade

PepsiCo announced on Friday that it would no longer use an ingredient in Gatorade after consumers complained.

The ingredient, brominated vegetable oil, which was used in citrus versions of the sports drink to prevent the flavorings from separating, was the object of a petition started on Change.org by Sarah Kavanagh, a 15-year-old from Hattiesburg, Miss., who became concerned about the ingredient after reading about it online. Studies have suggested there are possible side effects, including neurological disorders and altered thyroid hormones.

The petition attracted more than 200,000 signatures, and this week, Ms. Kavanagh was in New York City to tape a segment for “The Dr. Oz Show.” She visited The New York Times on Wednesday and while there said, “I just don’t understand why they can’t use something else instead of B.V.O.”

“I was in algebra class and one of my friends kicked me and said, ‘Have you seen this on Twitter?’ ” Ms. Kavanagh said in a phone interview on Friday evening. “I asked the teacher if I could slip out to the bathroom, and I called my mom and said, ‘Mom, we won.’ ”

Molly Carter, a spokeswoman for Gatorade, said the company had been testing alternatives to the chemical for roughly a year “due to customer feedback.” She said Gatorade initially was not going to make an announcement, “since we don’t find a health and safety risk with B.V.O.”

Because of the petition, though, Ms. Carter said the company had changed its mind, and an unidentified executive there gave Beverage Digest, a trade publication, the news for its Jan. 25 issue.

Previously, a spokesman for PepsiCo had said in an e-mail, “We appreciate Sarah as a fan of Gatorade, and her concern has been heard.”

Brominated vegetable oil will be replaced by sucrose acetate isobutyrate, an emulsifier that is “generally recognized as safe” as a food additive by the Food and Drug Administration. The new ingredient will be added to orange, citrus cooler and lemonade Gatorade, as well Gatorade X-Factor orange, Gatorade Xtremo citrus cooler and a powdered form of the drink called “glacier freeze.”

Ms. Carter said consumers would start seeing the new ingredient over the next few months as existing supplies of Gatorade sell out and are replaced.

Health advocates applauded the company’s move. “Kudos to PepsiCo for doing the responsible thing on its own and not waiting for the F.D.A. to force it to,” said Michael Jacobson, executive director of the Center for Science in the Public Interest.

Mr. Jacobson has championed the removal of brominated vegetable oil from foods and beverages for the last several decades, but the F.D.A. has left it in a sort of limbo, citing budgetary constraints that it says keep it from going through the process needed to formally ban the chemical or declare it safe once and for all.

Brominated vegetable oil is banned as a food ingredient in Japan and the European Union. About 10 percent of drinks sold in the United States contain it, including Mountain Dew, which is also made by PepsiCo; some flavors of Powerade and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.

PepsiCo said it had no plans to remove the ingredient from Mountain Dew and Diet Mountain Dew, both of which generate more than $1 billion in annual sales.

Heather White, executive director at the Environmental Working Group, said of PepsiCo’s decision, “We can only hope that other companies will follow suit.” She added, “We need to overhaul how F.D.A. keeps up with the latest science on food additives to better protect public health.”

Ms. Kavanagh agreed. “I’ve been thinking about ways to take this to the next level, and I’m thinking about taking it to the F.D.A. and asking them why they aren’t doing something about it,” she said. “I’m not sure yet, but I think that’s where I’d like to go with this.”


This post has been revised to reflect the following correction:

Correction: January 26, 2013

An earlier version of this article misspelled the surname of the 15-year-old who started a petition on Change.org to end the use of brominated vegetable oil in Gatorade. She is Sarah Kavanagh, not Kavanaugh.

A version of this article appeared in print on 01/26/2013, on page B1 of the NewYork edition with the headline: PepsiCo Will Halt Additive Use In Gatorade.
Read More..

Diner’s Journal Blog: PepsiCo Will Halt Use of Additive in Gatorade

PepsiCo announced on Friday that it would no longer use an ingredient in Gatorade after consumers complained.

The ingredient, brominated vegetable oil, which was used in citrus versions of the sports drink to prevent the flavorings from separating, was the object of a petition started on Change.org by Sarah Kavanagh, a 15-year-old from Hattiesburg, Miss., who became concerned about the ingredient after reading about it online. Studies have suggested there are possible side effects, including neurological disorders and altered thyroid hormones.

The petition attracted more than 200,000 signatures, and this week, Ms. Kavanagh was in New York City to tape a segment for “The Dr. Oz Show.” She visited The New York Times on Wednesday and while there said, “I just don’t understand why they can’t use something else instead of B.V.O.”

“I was in algebra class and one of my friends kicked me and said, ‘Have you seen this on Twitter?’ ” Ms. Kavanagh said in a phone interview on Friday evening. “I asked the teacher if I could slip out to the bathroom, and I called my mom and said, ‘Mom, we won.’ ”

Molly Carter, a spokeswoman for Gatorade, said the company had been testing alternatives to the chemical for roughly a year “due to customer feedback.” She said Gatorade initially was not going to make an announcement, “since we don’t find a health and safety risk with B.V.O.”

Because of the petition, though, Ms. Carter said the company had changed its mind, and an unidentified executive there gave Beverage Digest, a trade publication, the news for its Jan. 25 issue.

Previously, a spokesman for PepsiCo had said in an e-mail, “We appreciate Sarah as a fan of Gatorade, and her concern has been heard.”

Brominated vegetable oil will be replaced by sucrose acetate isobutyrate, an emulsifier that is “generally recognized as safe” as a food additive by the Food and Drug Administration. The new ingredient will be added to orange, citrus cooler and lemonade Gatorade, as well Gatorade X-Factor orange, Gatorade Xtremo citrus cooler and a powdered form of the drink called “glacier freeze.”

Ms. Carter said consumers would start seeing the new ingredient over the next few months as existing supplies of Gatorade sell out and are replaced.

Health advocates applauded the company’s move. “Kudos to PepsiCo for doing the responsible thing on its own and not waiting for the F.D.A. to force it to,” said Michael Jacobson, executive director of the Center for Science in the Public Interest.

Mr. Jacobson has championed the removal of brominated vegetable oil from foods and beverages for the last several decades, but the F.D.A. has left it in a sort of limbo, citing budgetary constraints that it says keep it from going through the process needed to formally ban the chemical or declare it safe once and for all.

Brominated vegetable oil is banned as a food ingredient in Japan and the European Union. About 10 percent of drinks sold in the United States contain it, including Mountain Dew, which is also made by PepsiCo; some flavors of Powerade and Fresca from Coca-Cola; and Squirt and Sunkist Peach Soda, made by the Dr Pepper Snapple Group.

PepsiCo said it had no plans to remove the ingredient from Mountain Dew and Diet Mountain Dew, both of which generate more than $1 billion in annual sales.

Heather White, executive director at the Environmental Working Group, said of PepsiCo’s decision, “We can only hope that other companies will follow suit.” She added, “We need to overhaul how F.D.A. keeps up with the latest science on food additives to better protect public health.”

Ms. Kavanagh agreed. “I’ve been thinking about ways to take this to the next level, and I’m thinking about taking it to the F.D.A. and asking them why they aren’t doing something about it,” she said. “I’m not sure yet, but I think that’s where I’d like to go with this.”


This post has been revised to reflect the following correction:

Correction: January 26, 2013

An earlier version of this article misspelled the surname of the 15-year-old who started a petition on Change.org to end the use of brominated vegetable oil in Gatorade. She is Sarah Kavanagh, not Kavanaugh.

A version of this article appeared in print on 01/26/2013, on page B1 of the NewYork edition with the headline: PepsiCo Will Halt Additive Use In Gatorade.
Read More..

Gadgetwise Blog: Is January the Time to Buy Electronics?

At the International Consumer Electronics Show in Las Vegas in early January, manufacturers tantalized consumers with new electronics soon to hit the shelves. But what does that do to the prices of current models that are being replaced? Is this a golden buying opportunity?

Yes and no. Yes for TVs, no for laptops. I’ll explain.

Decide.com, which tracks the price of electronics, studied what happened to the cost of TVs and laptops in past years after C.E.S.

What it found is that TV prices dip to near yearly lows after the show, matching holiday prices. With the average price of the top 250 TVs at $1,057, the post-show average is projected to drop an average of $211, to $846, based on data from previous  years. That is a 20 percent savings.

Laptops don’t drop so steeply. After the show, the 100 most popular laptops have historically been discounted 8 percent. This year that would mean the top 100 laptops, which average $780 in price, would be reduced $62, to $718.

Laptop price are lowest in late June through early July, right before the back to school sales, and during the last two weeks of September, after those sales, according to Decide.com’s data. At those times the discounts are typically 10 percent.

Of course, averages can be deceiving. Prices are volatile all year around, so a particular TV or computer you want could be discounted far more at any time.

There are a number of browser add-ons and apps that let you track prices of individual products, or you can use Decide.com – but it will cost you. Membership is $5 a month or $30 a year for full access.

Read More..

IHT Rendezvous: Mining the Deep Sea and Outer Space for a Mineral Bonanza

LONDON — Whatever happened to manganese nodules?

As newly announced plans to mine the mineral wealth of asteroids generate a mixture of excitement and skepticism, it is worth recalling the fate of an earlier craze to exploit a potential metals bonanza somewhat closer to home.

From the early 1970s, the prospect of hauling up a boundless harvest of metal rich nodules from the deepest ocean beds was touted as the answer to the world’s increasing hunger for diminishing resources.

The potato-size rocks that carpet the deep seabed — commonly known as manganese nodules — also contain a mix of other elements, including copper, cobalt and nickel.

Governments and private companies joined the treasure hunt as explorations were launched to determine whether projects to vacuum the nodules from miles below the ocean’s surface were commercially viable.

Lockheed Martin led a consortium of companies in an effort to develop a commercial mining operation, collecting thousands of nodules from an area of the Pacific Ocean between Hawaii and Mexico as part of an effort that would today cost more than $500 million.

Howard Hughes, the reclusive American tycoon, fueled the frenzy with the launch of the Glomar Explorer, a 618-foot ship he said was built to mine the manganese nodules. (It was, in fact, cover for a secret C.I.A. project to raise a sunken Soviet submarine.)

The potential “gold rush” was a factor that led to the United Nations Convention on the Law of the Sea that aimed to ensure that the seabed’s wealth outside territorial limits would be shared between developed and developing states.

However, a collapse in the international nickel price between the mid-1970s and mid-1980s shattered the prospects of instant wealth from the billions of tons of ore that lay just beyond the limits of technology available at the time.

The lure of the manganese nodule faded from public consciousness. As an article on the University of Texas’s Science and the Sea website stated in 2009: “A fortune is sitting at the bottom of the world’s oceans. And for the foreseeable future, at least, it’s likely to stay there.”

Interest has been revived, however, by the increasing demand for so-called rare earth metals that are used in many modern high-tech products such as fiber optics, memory chips and liquid-crystal screens.

Studies by Lockheed Martin and others have determined that seabed nodules could provide an alternative source of such metals in a market presently dominated by China.

A Chinese embargo on rare earth metal shipments in 2010 was described by Hillary Rodham Clinton, the U.S. secretary of state, as a “wake-up call” for the world to find new resources.

Interest in manganese nodule exploitation may have subsided since the 1970s but it never quite disappeared.

In the latest initiative this month, G-TEC Sea Mineral Resources, a private Belgium company signed a 15-year contract with the International Seabed Authority to prospect the central Pacific Ocean. The contract was backed by the Belgian government.

The Jamaica-based global body, which organizes and controls exploration of the seabed beyond national territorial limits, has granted a dozen such contracts since it established its Nodule Regulations in 2000.

Three months before, it signed a similar contract with Russia for prospecting and exploration in the Atlantic Ocean.

So, as nodule fever appears to be making a comeback, how about outer space?

Deep Space Industries, a California-based company has just announced its plans to inspect small asteroids that pass by Earth as potential mining targets.

That followed the announcement of plans by another company, Planetary Resources, to send an unmanned robotic mining mission to the asteroid belt, as my colleague Kirk Johnson reported from Washington State last month.

The prospect of mining asteroids was a sci-fi dream of the 1970s, just around the time of the manganese nodule craze.

Its revival has excited space fans but others are skeptical about the projects.

In a down-to-earth column in The Economist entitled “Fool’s Platinum?”, the business magazine suggested the economic case for asteroid mining was far from obvious.

“A doubling of supply from space might, for instance, exert such downward pressure on the price of platinum on Earth as to undermine the whole business case for the venture,” it wrote.

Read More..

DealBook: Compuware Rejects Elliott's $2.3 Billion Bid

11:46 a.m. | Updated

Compuware said on Friday that its board had rejected a $2.3 billion takeover bid by Elliott Management, arguing that the hedge fund’s offer was too low.

Instead, the business software maker said that it was focused on its own corporate turnaround blueprint, including a three-year plan to cut costs and an effort to spin off its Covisint business communication products arm. It also unveiled plans to pay a 50-cent quarterly dividend, beginning next quarter.

Compuware said that Elliott’s offer of $11 a share, made last month, would not deliver enough value to shareholders, compared to the improvements that its self-help plan would yield.

“We believe that selling the company at $11.00 per share does not take into account our progress returning the business to profitable growth and our future prospects,” Bob Paul, the company’s chief executive, said in a statement.

The decision by Compuware sets up a potential clash with Elliott, which has managed to score some big wins in its battles with technology companies. It bid for Novell, leading the software maker to sell itself to Attachmate for $2.2 billion.

People close to Elliott have argued that the hedge fund was fully prepared to pay the $2.3 billion it had offered for Compuware. But the hedge fund also believed that private equity firms would also express interest.

Though shares in Compuware began rising after Elliott disclosed an 8 percent stake in the company in November, they have remained largely below the $11-a-share offer, implying investor skepticism about a deal being done. The stock closed on Thursday at $10.76.

Jesse Cohn, the Elliott portfolio manager overseeing the hedge fund’s bid, said in a statement: ““This is a good outcome. Compuware has granted our request for access to diligence to confirm an offer for the company. We will immediately reach out to negotiate an appropriate N.D.A. and look forward to moving quickly to engage in diligence with the help of our legal and financial advisors. We remain very interested in the company.”

Read More..

Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

Read More..

Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

Read More..

DealBook: Compuware Rejects Elliott's $2.3 Billion Bid

11:46 a.m. | Updated

Compuware said on Friday that its board had rejected a $2.3 billion takeover bid by Elliott Management, arguing that the hedge fund’s offer was too low.

Instead, the business software maker said that it was focused on its own corporate turnaround blueprint, including a three-year plan to cut costs and an effort to spin off its Covisint business communication products arm. It also unveiled plans to pay a 50-cent quarterly dividend, beginning next quarter.

Compuware said that Elliott’s offer of $11 a share, made last month, would not deliver enough value to shareholders, compared to the improvements that its self-help plan would yield.

“We believe that selling the company at $11.00 per share does not take into account our progress returning the business to profitable growth and our future prospects,” Bob Paul, the company’s chief executive, said in a statement.

The decision by Compuware sets up a potential clash with Elliott, which has managed to score some big wins in its battles with technology companies. It bid for Novell, leading the software maker to sell itself to Attachmate for $2.2 billion.

People close to Elliott have argued that the hedge fund was fully prepared to pay the $2.3 billion it had offered for Compuware. But the hedge fund also believed that private equity firms would also express interest.

Though shares in Compuware began rising after Elliott disclosed an 8 percent stake in the company in November, they have remained largely below the $11-a-share offer, implying investor skepticism about a deal being done. The stock closed on Thursday at $10.76.

Jesse Cohn, the Elliott portfolio manager overseeing the hedge fund’s bid, said in a statement: ““This is a good outcome. Compuware has granted our request for access to diligence to confirm an offer for the company. We will immediately reach out to negotiate an appropriate N.D.A. and look forward to moving quickly to engage in diligence with the help of our legal and financial advisors. We remain very interested in the company.”

Read More..

IHT Rendezvous: Gallery Stroll: Istanbul

ISTANBUL—Unpredictable weather means winter isn’t the most popular season for visiting Istanbul, but it is a great time for gallery-hopping: Many of the best museums and art spaces in the Beyoglu district have just opened compelling new exhibitions.

At Arter, the curator Emre Baykal has gathered mostly new works by Turkish artists to create the second installment of “Envy, Enmity, Embarrassment.” Here, the artist known as Canan presents the installation, “I beg you please do not speak to me of love,” a room plastered with erotic movie posters from the heyday of the Yesilcam porn industry of the 1970s. In a transparent case in one corner of the room is a seemingly innocent white bathrobe. Embroidered on its back is a suicide note.

Other interesting works include “Twin Goddess: The Sketch of an Encounter,” an embroidered collage by Nilbar Gures using ancient symbols from Anatolian archaeology, and “The Island” by Hera Buyuktasciyan, a look at taboos.

The most powerful piece in this show is Hale Tenger’s “I Know People Like This III.” Visitors who enter the gallery from Istiklal Caddesi walk through this chronological maze of x-ray prints, a sort of light-box labyrinth, that lays out traumatic images from Turkish political history, including public protests, the killing of journalists and scenes of violence that followed the 1980 military coup.

On the parallel street, Mesrutiyet Caddesi, the Pera Museum has just opened a double-barreled program. A retrospective of the works of the Hungarian-American photographer Nickolas Muray covers the dashing man-about-town’s early black-and-white art nudes as well as his color-saturated portraits of beauties like Marilyn Monroe, Elizabeth Taylor and a woman he adored, Frida Kahlo. On another floor, “Between Desert and Sea” presents a selection of 52 works from the Jordan National Gallery of Fine Arts, pieces that speak to topical issues like religion, the rights of women, and the impact of the Arab Spring revolutions.

At the Salt Galata, a 10-minute stroll away on Bankalar Caddesi, “1 + 8″ is an installation of large-screen videos by Cynthia Madansky and Angelika Brudniak, who traveled to the borders between Turkey and its eight neighbors: Greece, Bulgaria, Georgia, Armenia, Nakchivan, Iran, Iraq and Syria to tape local residents talking about their daily lives and hopes. In the case of Iran, just a black screen is shown: The artists were refused permission to film in Iran, but they managed to record audio of Iranians who had crossed into Turkey for personal or business reasons. None felt safe having their faces shown.

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DealBook: Choice for S.E.C. Is Ex-Prosecutor, in Signal to Wall St.

President Obama is tapping Mary Jo White, a former United States attorney turned white-collar defense lawyer, to be the next chairwoman of the Securities and Exchange Commission, according to the White House.

Mr. Obama is set to announce the nomination at the White House on Thursday afternoon at 2:30. As part of the event, the White House will also renominate Richard Cordray to lead the Consumer Financial Protection Bureau, a role he has held for the last year under a recess appointment.

In its choice of Ms. White and Mr. Cordray, the White House is sending a signal about the importance of holding Wall Street accountable for wrongdoing. Both are former prosecutors.

Regulatory chiefs are often market experts or academics. But Ms. White spent nearly a decade as United States attorney in New York, the first woman named to this post. Among her prominent cases, she oversaw the prosecution of the mafia boss John Gotti as well as the people responsible for the 1993 World Trade Center bombing. She is now working the other side, defending Wall Street firms and executives as a partner at Debevoise & Plimpton.

As the attorney general of Ohio, Mr. Cordray made a name for himself suing Wall Street companies in the wake of the financial crisis. He undertook a series of prominent lawsuits against big names in the finance world, including Bank of America and the American International Group.

The White House expects Ms. White and Mr. Cordray to draw on their prosecutorial backgrounds while carrying out a broad regulatory agenda under the Dodd-Frank Act. Congress enacted the law, which mandates a regulatory overhaul, in response to the 2008 financial crisis.

“The president will name two individuals to serve in top enforcement roles in his administration to help ensure we are effectively implementing these reforms so that Wall Street is held accountable and middle-class Americans never again are harmed by the abuses of a few,” a White House official said.

Ms. White will succeed Elisse B. Walter, a longtime S.E.C. official, who took over as chairwoman after Mary L. Schapiro stepped down as the agency’s leader in December. Mr. Cordray joined the consumer bureau in 2011 as its enforcement director.

The nominations could face a mixed reception in Congress. The Senate already declined to confirm Mr. Cordray, with Republicans vowing to block any candidate for the consumer bureau, a new agency created to rein in the financial industry’s excesses. It is unclear whether the White House and Mr. Cordray will face another standoff the second time around.

Ms. White, 65, is expected to receive broad support. But she could face questions about her command of arcane financial minutiae. She was a director of the Nasdaq stock market, but has otherwise built her career on the law-and-order side of the securities industry.

People close to the S.E.C. note, however, that her husband, John W. White, is a veteran of the agency. From 2006 through 2008, he was head of the S.E.C.’s division of corporation finance, which oversees public companies’ disclosures and reporting.

Some Democrats also might question her path through the revolving door, in and out of government. While seen as a strong enforcer as a United States attorney, she went on in private practice to defend some of Wall Street’s biggest names, including Kenneth D. Lewis, a former head of Bank of America. She also represented JPMorgan Chase and the board of Morgan Stanley. Last year, the N.F.L. hired her to investigate allegations that the New Orleans Saints carried out a bounty system for hurting opponents.

Consumer advocates generally praised her appointment on Thursday. “Mary Jo White was a tough, smart, no-nonsense, broadly experienced and highly accomplished prosecutor,” said Dennis Kelleher, head of Better Markets, the nonprofit advocacy group. “She knew who the bad guys were, went after them and put them in prison when they broke the law.”

The appointment comes after the departure of Ms. Schapiro, who announced she would step down from the S.E.C. in late 2012. In a four-year tenure, she overhauled the agency after it was blamed for missing the warning signs of the crisis.

Since her exit, Washington and Wall Street have been abuzz with speculation about the next S.E.C. chief. President Obama quickly named Ms. Walter, then a Democratic commissioner at the agency, but her appointment was seen as a short-term solution.

In the wake of Ms. Schapiro’s exit, several other contenders surfaced, including Sallie L. Krawcheck, a longtime Wall Street executive. Richard G. Ketchum, chairman and chief executive of the Financial Industry Regulatory Authority, Wall Street’s internal policing organization, was also briefly mentioned as a long-shot contender.

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Well: Can You Read the Face of Victory?

Picture a tennis player in the moment he scores a critical point and wins a tournament. Now picture his opponent in the instant he loses the point that narrowly cost him the title. Can you tell one facial expression from the other, the look of defeat from the face of victory?

Try your hand at the images below, of professional tennis players at competitive tournaments. All were included in a new study that suggests that the more intense an emotion, the harder it is to distinguish it in a facial expression.

(Photos: Reuters/ASAP, Provided by Princeton University)


The researchers found that when overwhelming feelings set in, the subtle cues that convey emotion are lost, and facial expressions tend to blur. The face of joy and celebration often appears no different from the look of grief and devastation. Winning looks like losing. Pain resembles pleasure.

But that is not the case when it comes to body language. In fact, the new study found, people are better able to identify extreme emotions by reading body language than by looking solely at facial expressions. But even though we pick up on cues from the neck down to interpret emotion, we instinctively assume that it is the face that tells us everything, said Hillel Aviezer, a psychologist who carried out the new research with colleagues at Princeton University.

“When emotions run high, the face becomes more malleable: it’s not clear if there’s positivity or negativity going on there,” he said. “People have this illusion that they’re reading all this information in the face. We found that the face is ambiguous in these situations and the body is critical.”

Dr. Aviezer and his colleagues, who published their work in the journal Science, carried out four experiments in which subjects were asked to identify emotions by looking at photographs of people in various situations. In some cases, the subjects were shown facial expressions alone. In others, they looked at body language, either alone or in combination with faces. The researchers chose photographs taken in moments when emotions were running high – as professional tennis players celebrated or agonized, as loved ones grieved at funerals, as needles punctured skin during painful body piercings.

According to classic behavioral theories, facial expressions are universal indicators of mood and emotion. So the more intense a particular emotion, the easier it should be to identify in the face. But the study showed the exact opposite. As emotions peaked in intensity, expressions became distorted, similar to the way cranking up the volume on a stereo makes the music unrecognizable.

“When emotions are extremely high, it’s as if the speakers are blaring and the signal is degraded,” said Dr. Aviezer, who is now at Hebrew University in Jerusalem. “When the volume is that high, it’s hard to tell what song is playing.”

In one experiment, three groups of 15 people were shown photographs of professional tennis players winning and losing points in critical matches. When the subjects were shown the players’ expressions alone — separated from their bodies — they correctly identified their emotion only half of the time, which was no better than chance. When they looked at images of just the body with the face removed — or the body with the face intact — they were far more accurate at identifying emotions. Yet when asked, 80 percent said they were relying on the facial expressions alone. Twenty percent said they were going by body and facial cues together, and not a single one said they were looking only for gestures from the neck down.

Then, the researchers scrambled the photos, mixing faces and bodies together. The upset faces of players were randomly spliced onto the bodies of celebrating players, and vice versa.

When asked to judge the emotions, the subjects answered according to the body language. The facial expression did not seem to matter. If a losing face was spliced onto a celebrating body, the subjects tended to guess victory and jubilation. If they were looking at the face of an exuberant player placed on the body of an anguished player, the subjects guessed defeat and disappointment.

Although they were not aware of it, the subjects were clearly looking at body language, Dr. Aviezer said. Clenched fists, for example, suggested victory and celebration, while open or outstretched hands indicated a player’s disappointment.

In another experiment, the researchers looked at four other emotional “peaks.” For pain, they used the faces of men and women undergoing piercings. Grief was captured in images of mourners at a funeral. For joy, they used images of people on the reality television show “Extreme Makeover: Home Edition,” capturing their impassioned faces at the very moment they were shown their beautiful, brand new homes. And for pleasure, they went with a rather risqué option: images from an erotic Web site that showed faces at the height of orgasm.

Once again, the subjects could not correctly guess the emotions by looking at facial expressions alone. In fact, they were more likely to interpret “positive” faces as being “negative” more than the actual negative ones. When faces showing pleasure were spliced onto the body of someone in pain, for example, the subjects relied on body language and were often unaware that the facial expression was conveying the opposite emotion.

“There’s this point on ‘Extreme Makeover’ where people see their new house for the first time and the camera is on their face, so we have these wonderful photos of their expressions,” Dr. Aviezer said. “At that moment, they look like the most miserable people in the world. For a few seconds, it’s as if they are seeing their house burn down. They don’t look like you would expect.”

The researchers noted that they were not suggesting that facial expressions never indicate specific feelings – only that when the emotion is intense and at its peak, for those first few seconds, the expression is ambiguous. Dr. Aviezer said the facial musculature simply might not be suited for accurately conveying extremely intense feelings – in part because in the real world, so much of that is conveyed through situational context.

And this may not be limited to facial cues.

“Consider intense vocal expressions of grief versus joy or pleasure versus pain,” the researchers wrote in their paper. For example, imagine sitting in a coffee shop and hearing someone behind you shriek. Is it immediately obvious whether the emotion is a positive or negative one?

“When people are experiencing a very high level of excitation,” Dr. Aviezer said, “then we see this overlap in expressions.”

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Well: Can You Read the Face of Victory?

Picture a tennis player in the moment he scores a critical point and wins a tournament. Now picture his opponent in the instant he loses the point that narrowly cost him the title. Can you tell one facial expression from the other, the look of defeat from the face of victory?

Try your hand at the images below, of professional tennis players at competitive tournaments. All were included in a new study that suggests that the more intense an emotion, the harder it is to distinguish it in a facial expression.

(Photos: Reuters/ASAP, Provided by Princeton University)


The researchers found that when overwhelming feelings set in, the subtle cues that convey emotion are lost, and facial expressions tend to blur. The face of joy and celebration often appears no different from the look of grief and devastation. Winning looks like losing. Pain resembles pleasure.

But that is not the case when it comes to body language. In fact, the new study found, people are better able to identify extreme emotions by reading body language than by looking solely at facial expressions. But even though we pick up on cues from the neck down to interpret emotion, we instinctively assume that it is the face that tells us everything, said Hillel Aviezer, a psychologist who carried out the new research with colleagues at Princeton University.

“When emotions run high, the face becomes more malleable: it’s not clear if there’s positivity or negativity going on there,” he said. “People have this illusion that they’re reading all this information in the face. We found that the face is ambiguous in these situations and the body is critical.”

Dr. Aviezer and his colleagues, who published their work in the journal Science, carried out four experiments in which subjects were asked to identify emotions by looking at photographs of people in various situations. In some cases, the subjects were shown facial expressions alone. In others, they looked at body language, either alone or in combination with faces. The researchers chose photographs taken in moments when emotions were running high – as professional tennis players celebrated or agonized, as loved ones grieved at funerals, as needles punctured skin during painful body piercings.

According to classic behavioral theories, facial expressions are universal indicators of mood and emotion. So the more intense a particular emotion, the easier it should be to identify in the face. But the study showed the exact opposite. As emotions peaked in intensity, expressions became distorted, similar to the way cranking up the volume on a stereo makes the music unrecognizable.

“When emotions are extremely high, it’s as if the speakers are blaring and the signal is degraded,” said Dr. Aviezer, who is now at Hebrew University in Jerusalem. “When the volume is that high, it’s hard to tell what song is playing.”

In one experiment, three groups of 15 people were shown photographs of professional tennis players winning and losing points in critical matches. When the subjects were shown the players’ expressions alone — separated from their bodies — they correctly identified their emotion only half of the time, which was no better than chance. When they looked at images of just the body with the face removed — or the body with the face intact — they were far more accurate at identifying emotions. Yet when asked, 80 percent said they were relying on the facial expressions alone. Twenty percent said they were going by body and facial cues together, and not a single one said they were looking only for gestures from the neck down.

Then, the researchers scrambled the photos, mixing faces and bodies together. The upset faces of players were randomly spliced onto the bodies of celebrating players, and vice versa.

When asked to judge the emotions, the subjects answered according to the body language. The facial expression did not seem to matter. If a losing face was spliced onto a celebrating body, the subjects tended to guess victory and jubilation. If they were looking at the face of an exuberant player placed on the body of an anguished player, the subjects guessed defeat and disappointment.

Although they were not aware of it, the subjects were clearly looking at body language, Dr. Aviezer said. Clenched fists, for example, suggested victory and celebration, while open or outstretched hands indicated a player’s disappointment.

In another experiment, the researchers looked at four other emotional “peaks.” For pain, they used the faces of men and women undergoing piercings. Grief was captured in images of mourners at a funeral. For joy, they used images of people on the reality television show “Extreme Makeover: Home Edition,” capturing their impassioned faces at the very moment they were shown their beautiful, brand new homes. And for pleasure, they went with a rather risqué option: images from an erotic Web site that showed faces at the height of orgasm.

Once again, the subjects could not correctly guess the emotions by looking at facial expressions alone. In fact, they were more likely to interpret “positive” faces as being “negative” more than the actual negative ones. When faces showing pleasure were spliced onto the body of someone in pain, for example, the subjects relied on body language and were often unaware that the facial expression was conveying the opposite emotion.

“There’s this point on ‘Extreme Makeover’ where people see their new house for the first time and the camera is on their face, so we have these wonderful photos of their expressions,” Dr. Aviezer said. “At that moment, they look like the most miserable people in the world. For a few seconds, it’s as if they are seeing their house burn down. They don’t look like you would expect.”

The researchers noted that they were not suggesting that facial expressions never indicate specific feelings – only that when the emotion is intense and at its peak, for those first few seconds, the expression is ambiguous. Dr. Aviezer said the facial musculature simply might not be suited for accurately conveying extremely intense feelings – in part because in the real world, so much of that is conveyed through situational context.

And this may not be limited to facial cues.

“Consider intense vocal expressions of grief versus joy or pleasure versus pain,” the researchers wrote in their paper. For example, imagine sitting in a coffee shop and hearing someone behind you shriek. Is it immediately obvious whether the emotion is a positive or negative one?

“When people are experiencing a very high level of excitation,” Dr. Aviezer said, “then we see this overlap in expressions.”

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Nokia Shows a Profit, but Shares Drop


BERLIN — The Finnish phone maker Nokia on Thursday reported its first quarterly profit in almost two years since entering its smartphone alliance with Microsoft, but the company’s shares fell as doubts persisted about the company’s ability to accomplish a turnaround.


The company, based in Espoo, Finland, said it had a profit of €202 million, or $269 million, in the three months through December, up from a loss of €1.1 billion loss a year earlier. Sales fell 20 percent to €8 billion from €10 billion as it phased out an older line of smartphones that used the Symbian operating system.


The company’s shares fell as much as 8.4 percent in afternoon trading in Helsinki, to 3.194, as Nokia announced that it would not pay a dividend for 2012, which would save the company about €750 million. It was the first time Nokia had not paid a dividend in recent memory, according to the company.


Mats Nystrom, an analyst at SEB Enskilda Bank in Stockholm, said that Nokia had raised investor hopes earlier this month when it said it would report a quarterly profit, but that the company had not met those expectations with results that showed less-than-expected growth in the average selling prices of its flagship Lumia smartphone line and falling cellphone prices. “I still think it is far from a certainty that this turnaround will be a success,” Mr. Nystrom said.


In a conference call with journalists, the Nokia chief executive, Stephen Elop, said the company had successfully eliminated investor concerns about its future and ability to pull off a turnaround. Nokia’s net cash on hand at the end of December, bolstered by the decision to forgo a dividend payment, rose to €4.4 billion from €3.6 billion in September.


“For investors, it was a solid quarter in which we removed concerns about our cash situation,” Mr. Elop said. The former Microsoft senior executive has closed factories across Europe and eliminated 16,500 workers from Nokia’s phone business over the past year.


The quarterly net profit was the first since Nokia announced its alliance with Microsoft in February 2011, which set off a turbulent transition that led to about €5 billion in combined losses, the laying off of a third of the company’s work force and a steep decline in its market share in smartphones, the industry’s defining segment.


While sales of Nokia’s new Lumia line, which uses Microsoft’s Windows Phone operating system, are accelerating, to 4.4 million units in the fourth quarter from 2.9 million in the third, the company is now a distant challenger to the industry leaders Apple and Google. The Android operating system from Google is now running nearly two-thirds of all new smartphones sold around the world.


Apple sold more than 10 times the number of iPhones during the fourth quarter, 47.8 million, and sales of Android smartphones, according to International Data Corp., reached 136 million in the third quarter. But as the largest maker of smartphones running Microsoft’s new Windows Phone 8, Nokia can build on its gains.


“This is really the time now for Nokia to put up results,” said Francisco Jeronimo, an I.D.C. analyst in London. “They are almost exclusively out there with Windows 8, and Microsoft is strongly promoting the operating system. There can be no more excuses now.”


In North America, Nokia increased its sale of phone handset sales by 40 percent in the fourth quarter to 700,000 units, up from 500,000 in the third quarter. Mr. Jeronimo said those results were weak considering the sizable marketing investment in the United States and Canada by Nokia and Microsoft on Windows 8.


Nokia’s share price has fallen by more than half during its software alliance with Microsoft. The shares have risen about 13 percent this year.


In the fourth quarter, Nokia’s profit was fueled by continued cost-cutting and the introduction of the Lumia 820 and 920 smartphones running Windows Phone 8.


The new handsets helped Nokia raise the average selling price of Lumia phones in the quarter to €186, up 33 percent from €140 in the same quarter a year earlier. But the average price of Nokia’s basic cellphones, which still make up almost two-thirds of its total phone sales, fell by 3 percent to €31 from €32.


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India Ink: Image of the Day: Jan. 24

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I.M.F. Forecast: Global Economic Growth Modest at Best


WASHINGTON — The International Monetary Fund said on Wednesday that it continued to expect a modest upturn in global growth in 2013, with fewer risks of major policy mistakes and lower levels of financial stress.


The fund cautioned, however, that growth is hardly expected to snap back to pre-crisis levels in the coming years. Over all, the fund sees global growth of 3.5 percent in 2013 and 4.1 percent in 2014, up from 3.2 percent in 2012. In the years just before the global downturn, annual economic growth ranged between 4.5 and 5.5 percent.


“If crisis risks do not materialize and financial conditions continue to improve, global growth could be stronger than projected,” the Washington-based fund said in its economic report. “However, downside risks remain significant, including renewed setbacks in the euro area and risks of excessive near-term fiscal consolidation in the United States. Policy action must urgently address these risks.”


The fund issued a routine update to the projections it makes in its twice-yearly World Economic Outlook report. This time, it whittled down many of the forecasts for 2013 that it had made in October, knocking 0.1 percentage point from its United States growth forecast, 0.3 percentage point from the euro area and 0.4 percentage point from the newly industrialized Asian economies, like Singapore and South Korea.


Still, it noted that financial stresses and the risk of a major policy shock in Europe and the United States have decreased. “Optimism is in the air,” said Olivier Blanchard, the fund’s chief economist, at a press conference on Wednesday. “Some cautious optimism may indeed be justified,” he added. “We may have avoided the cliffs, but we still face high mountains.”


The fund said it downgraded its estimate of European growth from October despite “progress in national adjustment and a strengthened European Union-wide policy response to the euro area crisis.” It said that there might be “delays” as lower sovereign-bond yields and reduced financial stress eventually translate into improved private-sector borrowing conditions. It added that uncertainty about the ultimate resolution of the long-simmering European debt crisis remains high.


Mr. Blanchard said that policy challenges “clearly” remain highest in certain European countries struggling with large debt burdens and slow-growing economies. He said business competitiveness and exports had improved recently, but high interest rates, pressure for budget cuts and uncertainty continued to depress growth.


Slow growth in advanced economies, including the United States, Germany and Japan, will continue to weigh on growth in emerging economies, the fund said.


Mr. Blanchard noted that financial markets have become considerably more sanguine over the past year, with the European Central Bank starting a major new bond-buying program and the United States avoiding the worst of the so-called fiscal cliff package of tax increases and budget cuts. He said that could be a sign that the financial markets are experiencing some kind of “bubble” but also said that investors could be “seeing things which are truly good.” Ultimately, with less financial stress, the real economy should pick up, thus explaining the market optimism, he said.


In terms of policy advice, Mr. Blanchard said that his “main message” would be that “financial market optimism should not lead to policy complacency.”


For Washington, the “priority is to avoid excessive fiscal consolidation in the short term, promptly raise the debt ceiling and agree on a credible medium-term consolidation plan,” the fund’s economists said. Christine Lagarde, managing director, and other fund officials have repeatedly warned politicians in Washington not to embark on too stringent an austerity program, for the good of the world economy as well as the United States.


At the news conference, Thomas Helbling of the I.M.F.’s research division said that the United States faced a “long-term” fiscal problem, with much of the policy challenge resting in bringing down health care spending over time. He said that the challenge seemed “doable,” and stressed that other countries faced far more wrenching adjustments.


This month, its sister institution, the World Bank, released a rosier economic analysis. It foresees global growth of just 2.4 percent in 2013. But it said that emerging economies could worry less about downside risks from advanced economies and start focusing on domestic economic issues, like labor-market or regulatory reforms.


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Well: Have a Health Question? Ask Well

The Well section of The New York Times is starting a new online featured called Ask Well. If you have a question about fitness, nutrition, illness or family health, the staff of The New York Times Health section is ready to help you find the answer.

How do you solve the problem of back pain caused by sitting in an office chair all day? Do you still need the flu shot even if you’ve had the flu? What’s the best way to heal tennis elbow? Those are some of the questions we’ve already answered in Ask Well.


Tara Parker-Pope speaks about Ask Well.


All questions submitted to Ask Well will be reviewed by the health staff. We’ll post selected questions and let readers vote on those they would most like to see answered. You can ask a question, vote for your favorites and read answered questions on the Ask Well Questions Page.

While Ask Well is not a source for personal medical advice (only your doctor can give you that), we can offer readers health information from the experts and guide you to various resources to help you make informed decisions. So let’s get started. Tell us what’s on your mind, and Ask Well will provide the answers.

Related Articles Also Tagged:

health

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Well: Have a Health Question? Ask Well

The Well section of The New York Times is starting a new online featured called Ask Well. If you have a question about fitness, nutrition, illness or family health, the staff of The New York Times Health section is ready to help you find the answer.

How do you solve the problem of back pain caused by sitting in an office chair all day? Do you still need the flu shot even if you’ve had the flu? What’s the best way to heal tennis elbow? Those are some of the questions we’ve already answered in Ask Well.


Tara Parker-Pope speaks about Ask Well.


All questions submitted to Ask Well will be reviewed by the health staff. We’ll post selected questions and let readers vote on those they would most like to see answered. You can ask a question, vote for your favorites and read answered questions on the Ask Well Questions Page.

While Ask Well is not a source for personal medical advice (only your doctor can give you that), we can offer readers health information from the experts and guide you to various resources to help you make informed decisions. So let’s get started. Tell us what’s on your mind, and Ask Well will provide the answers.

Related Articles Also Tagged:

health

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DealBook: Microsoft May Back Dell Buyout

The effort to take Dell private has gained a prominent, if unusual, backer: Microsoft.

The software giant is in talks to help finance a takeover bid for Dell that would exceed $20 billion, a person briefed on the matter said on Tuesday. Microsoft is expected to contribute up to several billion dollars.

An investment by Microsoft — if it comes to pass — could be enough to push a leveraged buyout of the struggling computer maker over the goal line. Silver Lake, the private equity firm spearheading the takeover talks, has been seeking a deep-pocketed investor to join the effort. And Microsoft, which has not yet made a commitment, has more than $66 billion in cash on hand.

Microsoft and Silver Lake, a prominent investor in technology companies, are no strangers. The private equity firm was part of a consortium that sold Skype, the online video-chatting pioneer, to Microsoft for $8.5 billion nearly two years ago. And the two companies had discussed teaming up to make an investment in Yahoo in late 2011, before Yahoo decided against selling a minority stake in itself.

A vibrant Dell is an important part of Microsoft’s plans to make Windows more relevant for the tablet era, when more and more devices come with touch screens. Dell has been one of the most visible supporters of Windows 8 in its products.

That has been crucial at a time when Microsoft’s relationships with many PC makers have grown strained because of the company’s move into making computer hardware with its Surface family of tablets.

Frank Shaw, a spokesman for Microsoft, declined to comment.

If completed, a buyout of Dell would be the largest leveraged buyout since the financial crisis, reaching levels unseen since the takeovers of Hilton Hotels and the Texas energy giant TXU. Such a deal is taking advantage of Dell’s still-low stock price and the abundance of investors willing to buy up the debt issued as part of a transaction to take the company private. And Silver Lake has been working with Dell’s founder, Michael S. Dell, who is expected to contribute his nearly 16 percent stake in the company to a takeover bid.

Yet while many aspects of the potential deal have fallen into place, including a potential price of up to around $14 a share, talks between Dell and its potential buyers may still fall apart.

Shares of Dell closed up 2.2 percent on Tuesday, at $13.12. They began rising after CNBC reported Microsoft’s potential involvement in a leveraged buyout. Microsoft shares slipped 0.4 percent, to $27.15.

Microsoft’s lending a hand to Dell could make sense at a time when the PC industry is facing some of the biggest challenges in its history. Dell is one of Microsoft’s most significant, longest-lasting partners in the PC business and among the most committed to creating machines that run Windows, the operating system that is the foundation of much of Microsoft’s profits.

But PC sales were in a slump for most of last year, as consumers diverted their spending to other types of devices like tablets and smartphones. Dell, the third-biggest maker of PCs in the world, recorded a 21 percent decline in shipments of PCs during the fourth quarter of last year from the same period in 2011, according to IDC.

In a joint interview in November, Mr. Dell and Steven A. Ballmer, Microsoft’s chief executive, exchanged friendly banter, as one would expect of two men who have been in business together for decades.

Mr. Dell said Mr. Ballmer had gone out of his way to reassure him that Microsoft’s Surface computers would not hurt Dell sales.

“We’ve never sold all the PCs in the world,” said Mr. Dell, sitting in a New York hotel room brimming with new Windows 8 computers made by his company. “As I’ve understood Steve’s plans here, if Surface helps Windows 8 succeed, that’s going to be good for Windows, good for Dell and good for our customers. We’re just fine with all that.”

Microsoft has been willing to open its purse strings in the past to help close partners. Last April, Microsoft committed to invest more than $600 million in Barnes & Noble’s electronic books subsidiary, in a deal that ensures a source of electronic books for Windows devices. Microsoft also agreed in 2011 to provide the Finnish cellphone maker Nokia billions of dollars’ worth of various forms of support, including marketing and research and development assistance, in exchange for Nokia’s adopting Microsoft’s Windows Phone operating system.

A version of this article appeared in print on 01/23/2013, on page B1 of the NewYork edition with the headline: Microsoft May Back Dell Buyout.
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Economist Urges Elimination of Cats From New Zealand







HONG KONG — A prominent New Zealand economist has set off a firestorm by suggesting that cats should eventually be eliminated from his country, claiming they are posing a dire threat to native bird species.




Gareth Morgan, an economist and environmentalist, says that the cat is actually a “friendly neighborhood serial killer” when it comes to birds, and his Web site suggests that New Zealanders should gradually reduce the local feline population by having all cats neutered, and that when cats do die, their owners should not replace them.


This problem, he says in his anti-cat site “Cats to Go,” is that cats are gradually endangering New Zealand’s rich avian diversity, having helped kill off nine native species while endangering another 33.


New Zealanders, it turns out, have an affinity for what Mr. Morgan calls “that little ball of fluff” that he maintains “is actually a natural-born killer.” The New Zealand Pet Food Manufacturers Association, which of course has a stake in such statistics, reports that 48 percent of New Zealand’s households have cats, “making it the highest cat ownership rate in the world.”


The issue of the feline threat to birds has been documented before. A study on the deaths of baby gray catbirds in the Washington suburbs found that 80 percent of the birds were killed by predators, and cats were responsible for 47 percent of those deaths. One issue is that with their domestication, cats have few natural predators.


Still, Mr. Morgan’s campaign calling for the eventual elimination of cats has drawn an angry response from cat lovers and animal groups. “A cat-free anywhere is not a good area,” said Bob Kerridge, executive director of the Auckland Society for the Prevention of Cruelty to Animals, who added that we should “leave it to nature to take care of things.”


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DealBook: At Davos, Crisis Is the New Normal

DAVOS, Switzerland — In certain ways, the very setting of the World Economic Forum reflects the restless, challenged state of human affairs. Our footing is uncertain, as on this ski resort’s slithery streets, and we have steep slopes to climb, as the Magic Mountain will remind the global elite this week.

Barely into 2013, Mali and Algeria are new sites of hot war and chilling fear. Where the tumult that began in the Arab Spring will end is still as unclear as when it erupted — far from Davos — two years ago.

The challenge posed by the free flow of information in China went to the New Year streets in Guangzhou. Washington’s feuding politicians walked up to the brink before resolving not to jump off the so-called fiscal cliff. Europe seems to have averted a collapse of the euro, but even in Germany, growth is anemic.

Crisis, in short, is the new normal.

And while the business community determinedly seeks opportunity in troubled times, even many an entrepreneur views the years since the financial crisis of 2008 as what Rich Lesser, the new chief executive of the Boston Consulting Group, called “a higher period of turbulence and uncertainty in the global economy than we have experienced in a very long time.”

The days in which “quants” and algorithms reigned supreme are gone, their increasingly untrackable results having helped the financial system spin out of control in 2008 and 2009. The heady triumph of capitalism after 1989 is also a distant memory, although its chief effect — that capital went global — remains a driving force of our age.

But global capital does not solve big world issues: debt and financial crisis, political paralysis or gridlock, the transformative effects of the digital revolution, climate change, resource shortages, shifting demographics.

For those tasks, we must rely either on the nation state — an aging collective unit that does not readily serve transnational action — or on international institutions whose effectiveness is regularly questioned by the Davos crowd.

“The global economy has integrated, but global society is as fragmented as ever,” said Dennis J. Snower, president of the Kiel Institute for the World Economy.

In that fragmentation, there is an increasing lack of consensus about the global way forward. A few years ago, the inexorable rise of China led to talk of a new Beijing consensus, replacing the Washington consensus that epitomized the confident domination of the United States.

But China, while still growing, is growing less fast. It remains a one-party state, and its advance has arguably resulted more from enormous investment than creative increases in productivity. The challenges to its new leadership are clear: the need for financial reform; the perils of shadow banking and corruption; thick urban pollution; and, above all, the free flow of information, as seen in the standoff this month between a state censor in Guangzhou and journalists at the Southern Weekend and their supporters.

Ian Bremmer, head of the Eurasia Group political consulting firm, who in general sees a big return of politics in business calculations as the world becomes permanently restless, likened China to a large car that is racing toward a brick wall, “and we don’t know if they have steering” to skirt the obstacle, or whether they will hit it.

“As China grows wealthier,” he said in an interview, “entrenched Chinese will see the benefit of the rule of law” — a key element of the Washington consensus. But “the new leadership is not anywhere near there.”

For Yasheng Huang, a professor at the Sloan School of Management at the Massachusetts Institute of Technology, the saving grace of the incoming president, Xi Jinping, and his colleagues is that they are pragmatists. Pragmatism, he argued in an interview by phone, “means that you weigh the costs and benefits of certain actions.” It “checks the ideology.”

Yet even as China helps to sustain international growth — where would Europe’s purveyors of luxury be without the eager Chinese consumer? — it remains, like other emerging countries, self-absorbed.

“Look at the big debates of the last five years,” said Minxin Pei, like Mr. Huang a Chinese-born academic, who teaches at Claremont McKenna College in California. “It’s very hard to find one that originated in Beijing. People talk about China outside China, but still the country is very inward-looking.” This also feeds rising nationalism seen most markedly in the escalating dispute between China and Japan in the East China Sea.

As with China, so with Russia, India and Brazil, or indeed South Africa, Nigeria, Indonesia and other favorites of those who seek bright spots on a gloomy globe. In Brazil, “everything is focused on being Brazilian, how great it is,” noted Misha Glenny, a British analyst who has written on global mafias, cybercrime and is now working on a book about Brazil.

In these countries, absorbed in their own material advances and increasingly wary of a Washington-made prescription for their future, the “fiscal cliff” and debate about the limit on the United States deficit serve as proof that they are on the right path, though critics might dispute it.

“On the whole, we made a recovery from the crisis even faster than other countries,” President Vladimir V. Putin of Russia told a news conference last month. “Just look at the recession in Europe, while Russia has posted growth, albeit a modest one, but we still have a much better situation than in the once-prosperous euro zone, or even in the United States.”

In the United States, recent books have argued that the country’s status as a debtor nation is curbing its global reach. After the last-minute fiscal deal this month, a commentary of the kind believed to reflect high government thinking on the state-run Chinese news agency Xinhua noted tartly: “The American people were once better known for their ability to make tough choices on difficult issues.” It went on, “The Americans may be proud of their mature democracy, but the political gridlock in Washington really looks ugly from an outsider’s view.”

One example of how nations in transition are going their own way is Egypt, where President Mohamed Morsi seems to seek a geopolitical mix: a dose of Turkey, an Islamist-leaning democracy, with much-needed financial aid from China, and relations with Washington warm enough to garner more aid and collaborate on diplomacy like mediating the Israeli-Palestinian fighting over the Gaza Strip last November.

The fluid nature of this world is enhanced by digital communication. With the collapse in newspaper readership and the spread of social media, “everyone gets little snippets of information, and never fully understands the implications,” Mr. Glenny noted. “Very few people do deeper reading and thinking.”

This, he argued, increases people’s sense that “everything has just become too big to grasp and understand.”

A crucial topic for the dozen or so analysts interviewed for this article, and central also to discussions of increasingly important trends like the global rise of women, is education. Instead of machines being in charge, a nimble human mind, connecting individuals with collective wisdom, is seen as the antidote to cacophony, poverty and chaos.

In this view, more and better schooling will help lift hundreds of millions out of poverty, make it easier for populations to cope with change and stimulate the kind of innovation that Mr. Lesser sees already in technology, medicine and health care.

What kind of education is a topic that will be much debated at Davos, to judge from several scheduled sessions on disruptive universities and the like.

“We need government to recognize the need to build the next-gen work force,” Mr. Lesser said. This is “fundamental to staying competitive in the future,” he said. “The challenge goes beyond education. It’s also about good immigration policies.” In this way, he argued, a country facing demographic challenges — Germans, according to a government survey released last week, are the most childless adults in Europe — may preserve wealth and adapt to the future.

Whether by increasing online courses, interacting with students or raising the relatively dismal level of numeracy and literacy among American high school graduates, improving education “is one of the few things I can be unguardedly optimistic about,” said Niall Ferguson, the Harvard University historian. “The solutions are relatively cheap, simple and to hand.”

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Well: The Appetite Workout

Every January, many people start working out, hoping to lose weight. But as studies attest, exercise often produces little or no weight loss — and even weight gain — and resolutions are soon abandoned. But new science suggests that if you stick with the right kind of exercise, you may change how your body interacts with food. It’s more than a matter of burning calories; exercise also affects hormones.

A 2012 study from the University of Wyoming looked at a group of women who either ran or walked and, on alternate days, sat quietly for an hour. After the running, walking or sitting, researchers drew blood to test for the levels of certain hormones and then directed the women to a room with a buffet. Human appetite is complicated, driven by signals from the brain, gut, fat cells, glands, genes and psyche. But certain appetite-related hormones, in particular ghrelin, which stimulates hunger, are known to be instrumental in determining how much we consume.

Studies have shown that exercise typically increases the production of ghrelin. Workouts make you hungry. In the Wyoming study, when the women ran, their ghrelin levels spiked, which should have meant they would attack the buffet with gusto. But they didn’t. In fact, after running they consumed several hundred fewer calories than they burned.

Their restraint, the researchers said, was due to a concomitant increase in other hormones that initiate satiety. These hormones, only recently discovered and still not well understood, tell the body that it has taken in enough fuel; it can stop eating. The augmented levels of the satiety hormones, the authors write, “muted” the message from ghrelin. Sitting and, notably, walking did not change the blood levels of the women’s satiety hormones, and the walkers overate, consuming more calories at the buffet than they had burned.

A related study published in December looked at the effects of moderate exercise, the equivalent of brisk jogging. It found that after 12 weeks, formerly sedentary, overweight men and women began recognizing, without consciously knowing it, that they should not overeat.

Researchers gave volunteers doctored milkshakes. Some contained maltodextrin, a flavorless sweetener that packed 600 calories into the drinks. The others, without maltodextrin, had 246 calories. Before beginning the exercise program, the volunteers ate more at a buffet lunch and throughout the rest of the day after drinking the high-calorie shake than when they were given the lower-calorie version. Their appetite regulation was out of whack.

But after three months of exercise, the volunteers consumed fewer calories throughout the day when they had the high-calorie shake than the lower-calorie one. Exercise “improves the body’s ability to judge the amount of calories consumed and to adjust for that afterward,” says Catia Martins, a professor at the Norwegian University of Science and Technology in Trondheim, who led the study.

But not all exercise. Running, it would seem, better hones the body’s satiety mechanisms than walking. And longevity counts. You need to stick with the program for several months, Martins says, to truly fine-tune appetite control.

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Well: The Appetite Workout

Every January, many people start working out, hoping to lose weight. But as studies attest, exercise often produces little or no weight loss — and even weight gain — and resolutions are soon abandoned. But new science suggests that if you stick with the right kind of exercise, you may change how your body interacts with food. It’s more than a matter of burning calories; exercise also affects hormones.

A 2012 study from the University of Wyoming looked at a group of women who either ran or walked and, on alternate days, sat quietly for an hour. After the running, walking or sitting, researchers drew blood to test for the levels of certain hormones and then directed the women to a room with a buffet. Human appetite is complicated, driven by signals from the brain, gut, fat cells, glands, genes and psyche. But certain appetite-related hormones, in particular ghrelin, which stimulates hunger, are known to be instrumental in determining how much we consume.

Studies have shown that exercise typically increases the production of ghrelin. Workouts make you hungry. In the Wyoming study, when the women ran, their ghrelin levels spiked, which should have meant they would attack the buffet with gusto. But they didn’t. In fact, after running they consumed several hundred fewer calories than they burned.

Their restraint, the researchers said, was due to a concomitant increase in other hormones that initiate satiety. These hormones, only recently discovered and still not well understood, tell the body that it has taken in enough fuel; it can stop eating. The augmented levels of the satiety hormones, the authors write, “muted” the message from ghrelin. Sitting and, notably, walking did not change the blood levels of the women’s satiety hormones, and the walkers overate, consuming more calories at the buffet than they had burned.

A related study published in December looked at the effects of moderate exercise, the equivalent of brisk jogging. It found that after 12 weeks, formerly sedentary, overweight men and women began recognizing, without consciously knowing it, that they should not overeat.

Researchers gave volunteers doctored milkshakes. Some contained maltodextrin, a flavorless sweetener that packed 600 calories into the drinks. The others, without maltodextrin, had 246 calories. Before beginning the exercise program, the volunteers ate more at a buffet lunch and throughout the rest of the day after drinking the high-calorie shake than when they were given the lower-calorie version. Their appetite regulation was out of whack.

But after three months of exercise, the volunteers consumed fewer calories throughout the day when they had the high-calorie shake than the lower-calorie one. Exercise “improves the body’s ability to judge the amount of calories consumed and to adjust for that afterward,” says Catia Martins, a professor at the Norwegian University of Science and Technology in Trondheim, who led the study.

But not all exercise. Running, it would seem, better hones the body’s satiety mechanisms than walking. And longevity counts. You need to stick with the program for several months, Martins says, to truly fine-tune appetite control.

Read More..

Disruptions: Immediacy of Digital Media Helps Drive Spending

I was tallying my spending of the last year, and much to my surprise, I spent $2,403 in one category. No, that wasn’t on clothes. It wasn’t on my most recent vacation, either. And it wasn’t the total of all my parking tickets (though that did feel as if it came close).

The $2,403 is what I spent on digital media.

But wait, people are spending money online? On media? Didn’t music industry executives declare, “People won’t pay for things online!”? Yes, as did movie industry executives. TV, radio, book, newspaper and magazine bigwigs, too, have all made similar claims over the last decade.

Well, those apocalyptic predictions turn out to be wrong.

I am spending more on digital media than I used to spend on the physical stuff. (The federal government says the average American family spent $2,572 on all entertainment, not just digital, in 2011.) And I know why I am spending more on digital media.

Digital media, unlike its slow cousin, is immediate. In the past, if friends mentioned a good book they had just finished, people made a note (mental or on a scrap of paper) to pick it up during their next visit to the bookstore or library. The same went for other items like CDs, DVDs or magazines.

Now, when someone does that at dinner — “Oh, I just finished Cormac McCarthy’s latest book, you’d love it!” — we pull out our smartphones, hop into a wormhole to Amazon or iTunes and buy it on the spot. No notes; no forgetting the book’s name; no driving to a store. The book or song is just transported to our pockets.

With one-click shopping and smartphones, buying media online becomes an impulse purchase, like the candy or gum by the cash register.

And it all adds up, quickly. Last year, I bought 47 e-books. That’s $475 on digital books alone. In the past, I probably bought 20 physical books a year, at most, and given that half of those were from used bookstores, my annual literary budget rarely passed $200.

I’m paying less but buying more.

I also spent $359 on music subscription services last year, including Rdio and Spotify. Then I frittered away $318 on other music downloads. I paid $95 for a Netflix subscription ($8 a month adds up); $25 for Flickr; $396 on apps and games; $60 on an Xbox Live subscription; $316 on movies and TV shows; $239 for subscription or one-offs of several digital magazines, including The New Yorker, Wired, The Economist and Popular Photography. (As an employee of The New York Times, I have free access to its digital offerings, otherwise I’d gladly pay for that, too.)

I’ve had to pay $120 a year for online storage to back up all my media purchases. And these numbers don’t include the money I spent on the Internet — almost $100 a month for my iPhone, iPad and home connection — or the purchases of Kindles, iPads and headphones. Granted, $2,403 might seem high for a bunch of zeros and ones. That could be, in part, because I live in Silicon Valley, where people slurp up digital content with the same frequency that rock stars would inhale drugs in the ’80s. Out here, we all tend to live a few years in the future. If it’s happening here now, it will usually happen elsewhere several years later.

“This is the same thing we saw with e-commerce five years ago, where people said it was just going to be across a small segment of the Valley,” said D. J. Patil, a data scientist in residence at Greylock Partners, a prominent venture capital company based in Menlo Park, Calif. “Now we are seeing hundreds of millions of dollars a year in online transactions.”

So where am I spending less? On traditional media. I rarely go to the movies anymore, where I have to sign over the mortgage for my home for a bottle of water and bag of popcorn. I don’t pay for cable TV either.

Like the media moguls who once predicted that digital media would be the demise of their industries, I’m willing to make a forecast: that digital spending number will continue to grow, and it’s all thanks to the ease of digital media.


This post has been revised to reflect the following correction:

Correction: January 20, 2013

An earlier version of this blog post misstated the amount spent on the Internet. It is $100 a month, not $100 a year.

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India Ink: Supreme Court to Consider Moving Delhi Gang Rape Trial on Wednesday

The Supreme Court has delayed until Wednesday a hearing on a petition to move the gang rape trial from New Delhi.

The petition by Manohar Lal Sharma, who represents one of the defendants, Mukesh Singh, was scheduled to be heard Tuesday but was deferred to Wednesday because the court did not have sufficient time to take it up.

Mr. Sharma said in an interview that he was convinced his client would not get a fair trial in Delhi, given the “unprecedented” public pressure and media scrutiny surrounding the case.

“Let us not forget that the accused also have rights in this country,” said Mr. Sharma. “How can they get a fair trial when every single person wants to see them hanged?”

Over a month after a 23-year-old woman was gang raped in a moving bus in Delhi, outrage over the crime and demands for justice for the victim have continued unabated.

Pressure from protesters and unrelenting attention by the media have resulted in quick police and legal action: five men and one juvenile were arrested in a week; a detailed charge sheet, including DNA results and matches, was filed in 18 days, and a fast track court was established to hear the case.

The defendants’ lawyers say the atmosphere in the capital is too emotionally charged to give their defendants a fair trial. Mr. Sharma said the trial should be moved far away from Delhi, suggesting southern Indian cities like Coimbatore and Madurai.

The court is scheduled Thursday to hear arguments on the charges against the five men, which include gang rape, murder, robbery and destruction of evidence, after which hearings will take place daily.

Fresh confusion emerged in the Supreme Court on Tuesday after V.K. Anand, the lawyer for Ram Singh, another defendant, claimed he had been appointed by Mukesh Singh to replace Mr. Sharma as his lawyer.

Mr. Sharma said he continues to be Mukesh Singh’s lawyer and accused Mr. Anand of seeking publicity.

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DealBook: In Euro Zone, Signs of Progress and Fears of Complacency

PARIS – This may be the year that Europe stops being the ticking time bomb of the global economy.

Ireland is on track to leave international bailout limbo by summer. Talk of Greece leaving the euro is off the table. And financial speculators have generally stopped betting the euro zone will blow up.

But even as the sense of emergency fades, Europe is potentially facing a starker problem.

For three years, Chancellor Angela Merkel of Germany and a phalanx of policy makers have been working to shore up the euro’s foundations to prevent the currency union from unraveling. As they gather with academics, executives and various experts this week at the World Economic Forum, which opens Wednesday in Davos, Switzerland, the biggest concern is that leaders might become less vigilant now that the heat is off, ushering in a raft of new troubles that could dog the euro for years to come.

“The risk is that complacency takes hold because there is no more urgency in the crisis, and that everything that has been done up until now will be deemed sufficient,” said Jacob Kirkegaard, a senior fellow at the Peterson Institute for International Economics in Washington. If that happens, he warned, “Europe will turn into the next Japan, and become a permanently depressed or stagnating economic area.”

Ms. Merkel might be forgiven for feeling a sense of vindication. Her deliberate approach to crisis management and refusal to get too far ahead of German public opinion has often frustrated her euro zone peers and foreign allies. And yet, the strategy seems to have worked — so far, at least. Ms. Merkel, who is to speak at Davos on Thursday, and other European leaders have generally done just enough to contain the crisis without alienating taxpayers.

Much of the credit for the current calm in Europe goes to Mario Draghi, the president of the European Central Bank. He appeased financial markets with his promise last summer to do whatever it took to preserve the euro, including buying the government bonds of Spain if necessary to keep a lid on the country’s borrowing costs.

The effect of Mr. Draghi’s promise has been evident: financial markets have stopped driving the borrowing costs of Spain and Italy toward the danger levels that led Ireland, Greece and Portugal to reach for international financial lifelines. Today, few people fear that Europe’s southern countries will break away from the euro union.

Other dire prospects, like Germany and other Northern European countries fleeing the euro union to avoid getting caught in a quagmire, have also dropped off the watch list. If anything, the focus of anxiety is the fiscal situation in the United States, where gridlock in Washington has become just as debilitating for the country’s finances as the euro policy paralysis was for European politicians.

“Some European policy makers who visited the United States recently were delighted to see that because of the fiscal cliff, Europe wasn’t on every channel,” said Kenneth S. Rogoff, a professor of economics at Harvard University. “There is an ecstasy over the fact that they won’t blow apart tomorrow.”

Still, Mr. Rogoff added, Europe must revive economic growth to fully address its problems. “And even if they do, that’s not a long-term solution,” he said. “They need to integrate more fully, or they will fall apart.”

Europe’s political leaders have taken important steps to improve spending discipline among euro members, to provide a financial backstop for troubled euro zone countries and to consolidate supervision of banks. Despite many imperfections, the measures seem to have been enough to convince investors that officials are slowly constructing a more resilient currency union.

“European countries have shown their resolve in making the euro a success and reaffirmed the deep political commitment to work together toward a stronger union,” Vítor Constâncio, the vice president of the European Central Bank, told an audience in Beijing on Jan. 12.

But leaders have yet to address some serious flaws in the structure of the euro zone. For example, they have not solved the problem of how to wind down terminally ill banks without sticking taxpayers with the bill. And they are far away from a deposit insurance fund for Europe, which means the risk of bank runs remains.

“In order to define a turning point, you need a lot of factors besides the stabilization of financial markets,” Mr. Draghi said this month.

But coming events could undermine confidence. Germany will hold national elections in September, which could make Ms. Merkel even more cautious than usual and stall euro zone decision making. Already, her main rivals pulled off an upset in regional elections this weekend in Lower Saxony.

Italian elections are also looming. Mario Monti, the prime minister who has restored Italy’s international credibility and is to speak at Davos on Wednesday, faces a public that is grumpy about a rollback of job protections and other policy overhauls. Silvio Berlusconi, a former Italian prime minister who presided over years of economic standstill, is attempting a populist comeback.

In France, President François Hollande’s pledge to bring the deficit down to 3 percent of gross domestic product this year to adhere to the rules governing euro membership may be challenged if France’s military engagement in Mali and the surrounding region turns into a drawn-out affair.

Across the channel, Prime Minister David Cameron of Britain, who is scheduled to speak at Davos on Thursday morning, has sounded warnings that the country might leave the European Union if changes in its administration are not made. “The danger is that Europe will fail and that the British people will drift toward the exit,” according to prepared text of a speech Mr. Cameron postponed delivering last week because of developments in the hostage crisis in Algeria.

In the meantime, the severe effects of prolonged austerity in several European countries are leaving deep social scars. Tax increases and steep spending cuts have ground many European citizens deeper than ever into hardship, prompting millions to demonstrate in Greece, Italy, Portugal and Spain. Recessionary economies in those countries are expected to get worse before they improve.

In Greece, where austerity has hit the hardest, people are burning trash and wood this winter for lack of money to pay electricity bills, and the government’s efforts to enact structural overhauls needed to turn the economy around and attract foreign investors continue to lag.

And then there is Germany, which itself is being tugged into a slowdown as its cash-poor southern neighbors continue to refrain from buying Audis and other high-priced German goods.

Unemployment in the euro zone continues to climb: the jobless rate in the 17 countries of the bloc hit a record 11.8 percent in November. Youth unemployment has surpassed 50 percent in Spain and Greece, a stratosphere of despair. Thousands of bright young people continue to flee Greece, Ireland, Spain and other countries every month for the booming economies of Australia and Canada.

Portuguese workers are even going to Africa in search of a better future, as the middle class there grows along with improving economic conditions on the southern part of the African continent.

Yet painful adjustments are starting to bear some fruit. Labor costs have come down in countries including Spain and Portugal, helping make their work forces more competitive within the region. In Spain, for instance, where unit labor costs have fallen 4 percent since the onset of the financial crisis in 2008, the labor market is now so alluring that Ford, Renault and Volkswagen have announced plans to expand production there.

In addition, the alarming flight of deposits from banks in Spain has come to a stop.

The euro zone’s problems have proven an opportunity for some countries to remove structural impediments to growth. In France, where Mr. Hollande has promised to make the economy more competitive, labor unions have agreed to a deal to overhaul swaths of the notoriously rigid labor market.

The deal would tame some of the French labor code’s most confounding restrictions, including lengthy hiring and firing procedures and outsize business taxes, as the country tries to lift its competitiveness, curb unemployment and improve the budget.

“Is the worst over? Probably yes,” analysts at Barclays Capital wrote in a recent note to clients.

That will be especially true if leaders and businesses persist in using the crisis as a chance to renew European competitiveness.

While some countries may have made enough economic overhauls to enjoy substantial growth, once the crisis is past, said Nicolas Véron, a senior fellow at Bruegel, a research institute in Brussels, “there are a lot of nuts still to crack.”

Liz Alderman reported from Paris and Jack Ewing from Frankfurt.

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