U.S. daily deals website Living Social to cut 400 jobs: WSJ












(Reuters) – U.S. daily deals online firm Living Social Inc is expected to announce on Thursday it is cutting 400 jobs, representing 9 percent of its workforce, as demand for daily deals and emailed daily discounts dries up, the Wall Street Journal reported, citing a source familiar with the plans.


The Washington-based company’s workforce has increased nearly 10-fold since the beginning of 2010 and it currently employs about 4,500 people worldwide, the Journal said. (http://link.reuters.com/rus34t)












Retail website Amazon.Com Inc owns a 30 percent stake in Living Social and booked a third-quarter charge of $ 169 million on the holding.


Living Social declined to comment to Reuters on the Journal report.


(Reporting By Neha Dimri and Alistair Barr; Editing by Muralikumar Anantharaman)


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X Factor judge Louis Walsh settles defamation case












DUBLIN (Reuters) – Television personality and pop music producer Louis Walsh on Wednesday settled a 500,000 euro ($ 640,000) defamation case against News Group Newspapers in Ireland.


The deal came after Walsh, best known for his role as a judge on the hit television show “The X Factor”, sued the group for publishing a story last year based on false allegations that he had groped a man in a Dublin night club.












Leonard Watters, who made the accusations before later retracting them, was jailed for six months earlier this year.


Paul Tweed, Walsh’s solicitor, said: “The publishers of the Irish, UK and online editions of the Sun have this morning unreservedly apologized to Louis Walsh.


“They have also agreed to pay very substantial damages of 500,000 euros together with his legal costs.”


Walsh, who managed Irish boy bands Westlife and Boyzone, said the story had a “terrible effect” on him.


“I’m very satisfied with this morning’s total vindication for me, but I remain very angry at the treatment I received at the hands of the Sun,” he said outside court.


“I have the utmost respect and time for most journalists with whom I’ve always enjoyed a good relationship, and I’m therefore absolutely gutted and traumatized that these allegations should have been published


“I wouldn’t wish this on my worst enemy.”


The Sun said it apologized “unreservedly”.


(Reporting by Sarah O’Connor)


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FDA advisory panel backs efficacy of J&J TB drug












(Reuters) – An advisory panel to the U.S. Food and Drug Administration on Wednesday voted that data suggest an experimental Johnson & Johnson drug for multidrug-resistant tuberculosis is effective, the drugmaker said.


The medicine, called bedaquiline, is a member of a new class of drugs that target adenosine triphosphate synthase, an enzyme the tuberculosis bacterium needs to generate its energy.












J&J said the panel of outside medical experts, in a vote of 18 to 0, found that trial data support the efficacy of bedaquiline in adults, taken in combination with standard treatments.


In September, the FDA granted priority review of the medicine, based on data from two mid-stage trials that tested it among patients with tuberculosis that is resistant to standard drugs.


J&J is hoping the agency will grant accelerated approval of the drug, on the basis of favorable data from mid-stage trials. The company plans to begin a larger Phase 3 study in the fourth quarter.


In a pair of completed Phase 2 trials, two doses of the medicine were tested for 24 weeks, in combination with standard treatments, followed by continuation of standard therapy for a year to 18 months.


The planned larger trial will involve nine months of treatment with bedaquiline, in combination with standard drugs, compared with standard drugs alone for the same period. The total nine-month treatment period would be far shorter than the current 18- to 24-month treatment period for multidrug-resistant tuberculosis drugs recommended by the World Health Organization, J&J said.


Cowen and Co has forecast peak annual sales of $ 300 million for bedaquiline, which would make it a fairly modest product for the diversified healthcare company.


Multidrug-resistant tuberculosis is caused by strains of the bacterium that have become resistant to at least isoniazid and rifampin, the two most potent drugs for TB.


Resistance to anti-TB drugs can occur when they are misused or mismanaged, for instance when patients don’t complete their full course of treatment or when doctors prescribe the wrong treatment, wrong dose or length of time taking the drugs.


An estimated 8.7 million people in 2011 fell ill with tuberculosis – which is spread by coughing and sneezing — while 1.4 million died from the disease, according to the World Health Organization. About 310,000 cases of multidrug-resistant TB were reported the same year, the organization said, with almost 60 percent in India, China and Russia.


(Reporting by Ransdell Pierson; Editing by Jan Paschal and Carol Bishopric)


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Oil below $87 after OECD cuts growth forecasts












BANGKOK (AP) — The price of oil fell below $ 87 a barrel Wednesday after the Organization for Economic Cooperation and Development cut its growth outlook for the U.S. and the 17 countries that use the euro currency.


Benchmark oil for January delivery was down 23 cents to $ 86.96 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell 56 cents to finish at $ 87.18 a barrel on the Nymex on Tuesday.












The Paris-based OECD said Tuesday that the combined economy of the 17 euro countries will contract by 0.4 percent this year, worse than May’s 0.1 percent forecast. For 2013, it will contract a further 0.1 percent.


The OECD also downgraded its forecasts for the U.S. economy. Even if the White House and Congress strike a budget deal before Jan. 1 and avoid the so-called fiscal cliff of automatic tax hikes and spending cuts, the OECD said the U.S. will grow by only 2 percent next year, down from May’s forecast of 2.6 percent.


Traders said weak economic growth would likely hurt demand for energy.


Michael Hewson, senior market analyst of CMC Markets, said the OECD report refocused concerns on “the toxic effect the European crisis continues to have on global growth prospects.”


Brent crude, which is used to set prices for many international varieties of oil, fell 28 cents to $ 109.59 a barrel on London’s ICE Futures exchange.


In other energy futures trading on the Nymex:


— Wholesale gasoline was down 0.3 cent at $ 2.692.


— Natural gas fell 2 cents to $ 3.749 per 1,000 cubic feet.


Heating oil fell 0.2 cent to $ 3.023 a gallon.


___


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Exclusive: Banks offer to help Sony offload battery unit – sources












TOKYO (Reuters) – Sony Corp has been approached by at least three investment banks offering to sell its battery business as the struggling Japanese group looks to offload non-core assets and focus on reviving its consumer electronics business, banking sources said.


Selling the unit, which employs 2,700 people and had sales last year of $ 1.74 billion, would help Sony cut costs and generate cash as it restructures its operations, three people involved in the preliminary discussions told Reuters.












The company, a byword for innovative gadgetry in the 1970s and 80s, has been battered by weak demand for its TVs in a fiercely competitive market. The TV business has racked up huge losses; Sony’s market value has slumped to below $ 10 billion and ratings agency Fitch last week downgraded the company’s debt to “junk” status – a move likely to push up borrowing costs and make asset sales more attractive.


CEO Kazuo Hirai has pledged to rebuild Sony around gaming, digital imaging and mobile devices, while nurturing new businesses such as medical devices. He is axing 10,000 jobs, closing facilities and selling assets. Any disposals would be part of a broader “garage sale” by Japan’s leading electronics groups that are hurting in weak markets and tight financing.


Potential buyers for Sony Energy Devices Corp – founded in 1975 as Sony-Eveready, a joint venture with Union Carbide Corp – could include Taiwan’s Hon Hai Precision Industry and BYD Co Ltd, a Chinese carmaker backed by billionaire investor Warren Buffett, said one of the sources. Hon Hai is also in negotiations to become rival TV maker Sharp Corp’s biggest shareholder.


FOREIGN INTEREST


Despite a strong yen, interest is likely to come mainly from potential foreign buyers, said the sources, who did not want to be named as the talks are private.


Selling the business overseas may not go down well with a Japanese government that in the past has kept technology at home by promoting alliances between local producers. Panasonic Corp, NEC Corp and Hitachi Ltd also make lithium-ion batteries, though the firms’ fabrication technology differs.


Sony declined to comment on the possible sale of the business, which makes lithium-ion batteries used in smartphones, tablets and PCs. “At our corporate strategy announcement in April, (Hirai) said we would explore possible alliances in E-vehicle batteries and battery storage,” said spokesman George Boyd.


As with TVs, Sony has struggled to compete against South Korean rivals in a battery business that is worth $ 18 billion a year. The small cells that power mobile devices now account for around 60 percent of the market, ahead of those used in cars and electrical tools, according to research company IHS iSuppli.


While lithium-ion battery demand has steadily expanded with the boom in mobile consumer electronics, severe price competition has resulted in razor thin margins that favor large-scale manufacturers with weak local currencies.


“The battery business is a prime example of the company’s loss-making and unwanted assets. It doesn’t make sense for them to keep it,” said one of the banking sources.


FALLING MARKET SHARE


As Hirai doubles down on Sony’s strength in consumer electronics, the company has sold a chemicals company, with 2,900 workers, and may also let go its U.S. headquarters building in New York go. At the same time, it has spent close to $ 2 billion on a U.S. game clouding company and a stake in medical equipment maker Olympus Corp.


Sony produced 74 million lithium-ion battery cells in July-September – almost 40 percent fewer than in the first quarter of 2008, when its output topped Samsung SDI Co Ltd’s 110 million and LG Chem Ltd’s 54 million, according to Techno System Research in Tokyo. Sony’s market share is now 7 percent, dwarfed by Samsung SDI’s 27 percent, Panasonic’s 21 percent and LG Chem’s 17 percent.


Sony’s battery unit, which also makes button batteries for watches and smaller appliances and optical devices, has three factories in Japan and two overseas assembly plants in China and Singapore. It has yet to enter the more lucrative business for automotive batteries.


In its most recent filing, Sony valued the battery unit’s fixed assets, including production sites and machinery, at 52 billion yen ($ 633 million). Under Sony’s accounting rules, asset sales are typically booked as operating profit.


The cost to protect $ 10 million of Sony debt against default for five years has edged higher this week to almost $ 400,000. The CDS spreads had tumbled earlier this month – from above 480 basis points – after Sony said it would raise 150 billion yen ($ 1.9 billion) through a sale of convertible bonds.


($ 1 = 82.1200 Japanese yen)


(Additional reporting by Reiji Murai; Editing by Ian Geoghegan)


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In elf ears and wizard hats, ‘Hobbit’ fans rejoice












WELLINGTON, New Zealand (AP) — Wearing elf ears and wizard hats, sitting atop their dad’s shoulders or peering from balconies, tens of thousands of New Zealanders watched their favorite “Hobbit” actors walk the red carpet Wednesday at the film trilogy’s hometown premiere.


An Air New Zealand plane freshly painted with “Hobbit” characters flew low over Wellington’s Embassy Theatre, eliciting roars of approval from the crowd.












Sam Rashidmardani, 12, said he came to see Gollum actor Andy Serkis walk the red carpet — and he wasn’t disappointed.


“It was amazing,” Rashidmardani said of the evening, adding his Gollum impression: “My precious.”


British actor Martin Freeman, who brings comedic timing to the lead role of Bilbo Baggins, said he thought director Peter Jackson had done a fantastic job on “The Hobbit: An Unexpected Journey.”


“He’s done it again,” Freeman said in an interview on the red carpet. “If it’s possible, it’s probably even better than ‘The Lord of the Rings.’ I think he’s surpassed it.”


While is unusual for a city so far from Hollywood to host the premiere of a hoped-for blockbuster, Jackson’s filming of his lauded ‘LOTR’ trilogy and now “The Hobbit” in New Zealand has helped create a film industry here. The film will open in theaters around the world next month.


One of the talking points of the film is the choice by Jackson to shoot it using 48 frames per second instead of the traditional 24 in hopes of improving the picture quality.


Some say the images come out too clear and look so realistic that they take away from the magic of the film medium. Jackson likens it to advancing from vinyl records to CDs.


“I really think 48 frames is pretty terrific and I’m looking forward to seeing the reaction,” Jackson said on the red carpet. “It’s been talked about for so long, but finally the film is being released and people can decide for themselves.”


Jackson said it was strange working on the project so intimately for two years and then having it suddenly taken away as the world got to see the movie.


“It spins your head a little bit,” he said.


Aidan Turner, who plays the dwarf Kili in the movie, said his character is reckless and thinks he’s charming.


“I don’t get to play real people it seems, I only get to play supernatural ones,” he said. “So playing a dwarf didn’t seem that weird, actually.


Perhaps the most well-known celebrities to walk the carpet were Cate Blanchett and Elijah Wood, who reprise their roles in the LOTR in the “Hobbit.”


“Mostly I came here to see everyone. I like them all,” said fan Aysu Shahin, 16, adding that Wood was her favorite. She said she wanted to see the movie “as soon as possible. I’m excited for it.”


At a news conference earlier in the day, Jackson said many younger people are happy to watch movies on their iPads.


“We just have to make the cinema-going experience more magical and more spectacular to get people coming back to the movies again,” he said.


Jackson said only about 1,000 of the 25,000 theaters that will show the film worldwide are equipped to show 48 frames, so most people will see it in the more traditional format. The movie has also been shot in 3D.


A handful of animal rights protesters held signs at the premiere.


The protest by the group People for the Ethical Treatment of Animals comes after several animal wranglers said three horses and up to two dozen other animals had died during the making of the movies because they were housed at an unsafe farm.


Jackson’s spokesman earlier acknowledged two horses had died preventable deaths at the farms but said the production company worked quickly to improve stables and other facilities and that claims of mistreatment were unfounded.


“No mistreatment, no abuse. Absolutely none,” Jackson said at the news conference.


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Salary growth lagging for primary care doctors












NEW YORK (Reuters Health) – Despite rising spending on health care in the United States, primary care doctors don’t seem to be reaping the rewards on their paychecks, a new study suggests.


The findings could have implications for what some predictions say will be a primary care shortage in some parts of the country in the coming years.












Researchers found that since the late 1980s, the average doctor‘s earnings have grown more slowly than the salaries of other health professionals, such as pharmacists, dentists and registered nurses.


“It is possible that there are some specialties that have done extremely well in the past 10 or 15 years,” said health policy researcher Amitabh Chandra from Harvard University in Cambridge, Massachusetts, who worked on the study.


But, “In terms of the experience of the median doctor, the median doctor is not at the heart of all the cost growth we’re seeing in America.” And that may have implications for the primary care field in the future, he noted.


For their study, Chandra and his colleagues analyzed data from a nationally-representative survey of Americans’ occupations and earnings conducted every year between 1987 and 2010. Each round included people older than 35 from 60,000 different households.


Over the 14-year study, 30,556 health professionals were surveyed, including 6,258 doctors.


The researchers found that between 1987-1990 and 2006-2010, the median doctor’s annual earnings grew from $ 143,963 to $ 157,751 – a difference of 9.6 percent. That was after taking into account any salary differences based on gender, age and location.


In comparison, the average pharmacist’s earnings increased by 44 percent, from $ 70,341 to $ 101,279, and the average dentist’s by 23 percent, from $ 105,511 to $ 129,795, the researchers reported Tuesday in the Journal of the American Medical Association.


Looking closer, the study team found that doctors’ salaries grew between 1987-1990 and 1996-2000, but then were stagnant over the next decade – a time when other health professionals continued to get bigger paychecks.


Because the earnings reflect pay for doctors in the middle of the salary pack, Chandra said the slow growth probably represents patterns for primary care doctors rather than specialists – and earnings for some “procedure-driven specialties,” such as cardiology, may have grown a lot.


Medicare payment cuts, as well as tougher bargaining by insurance companies, may be partly to blame for the “sluggish” growth in the primary care field, he added.


THE WHOLE PACKAGE?


In addition, more women and minorities are becoming doctors – and research has suggested they make less money than white, male physicians, said Bob Konrad from the University of North Carolina at Chapel Hill, who has studied doctor salaries.


He said the new findings may also not tell the whole economic story for primary care doctors.


Recently employers have started offering to pay off more of new doctors’ college and medical school debt as a way of luring top candidates, he said – but such financial benefits wouldn’t show up on their paychecks.


“Going forward, thinking about physician incomes, you have to think about the whole package,” Konrad, who wasn’t involved in the new study, told Reuters Health.


But Chandra said the study may have implications for some parts of the U.S. that are already facing a shortage of primary care doctors.


“If as a country we want more people to go into primary care, this anemic, jaundiced earnings growth is not going to be a motivator to get people to join primary care,” he told Reuters Health.


One profession not covered by the new research, Konrad pointed out, is wage workers such as home health aides.


“That’s a big part of the healthcare workforce and growing much faster than many other occupations,” he said. What’s more, “The hourly wage of a home health aide has been going down every year for the last 10 years… Half the people in the health sector are in the bottom half (of American workers) – they’re making less than $ 40,000 a year.”


SOURCE: http://bit.ly/JjFzqx Journal of the American Medical Association, online November 27, 2012.


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Work programme ‘to miss targets’













Government figures assessing the success of its welfare-to-work programme are expected to show a crucial target has been missed.












Firms and charities are paid to help find jobs for the long-term unemployed in the hope of helping 2.4m people.


But the first set of official figures, due out at shortly, are expected to show they are getting less than 5% of jobseekers into “sustainable” work.


Ministers argue the programme will help cut welfare payments and change lives.


But critics say only those in already economically successful areas will benefit.


The figures will show how many people are still in employment six months after joining the Work Programme, which was launched by the coalition in June last year.


BBC political editor Nick Robinson says the figures are expected to show that only around 3% of jobseekers meet this criteria.


Continue reading the main story

The work programme was part of what ministers called a revolution in welfare ”



End Quote



And failing to hit the 5% target will mean “as many unemployed are getting sustainable jobs as if the work programme had never existed”, he said.


He added that the government will not accept the scheme is a failure and will claim the work programme is taking longer than expected to succeed and the next set of figures will be better.


Under the scheme – replacing the New Deal, Employment Zones and Pathways to Work – approved providers in England, Scotland and Wales, mostly private companies, try to find work for claimants on a payment-by-results basis.


‘Still early days’


People aged over 25 become eligible when they have been out of work for a year and under-25s after nine months. Some younger people in certain circumstances, like young offenders, are eligible after a shorter period of time.


Ahead of the release of the government’s figures, the Employment Related Services Association, the trade body for the welfare-to-work industry, said 20,000 jobseekers were being helped each month. More than 200,000 have found employment since the scheme’s launch, it added.


But these figures do not show how many have remained in a job for six months after being helped off long-term unemployment, unlike the official ONS figures.


Employment minister Mark Hoban said: “The Work Programme has already helped more than 200,000 of the hardest-to-help unemployed people into jobs. This is great news.


He added: “It’s still early days, but it’s a welcome sign that one year in providers are getting more and more people into sustained jobs.”


The Centre for Economic and Social Inclusion think-tank predicted that the official data would show performance targets missed as a result of the poor state of the UK’s economy.


Under the programme, providers can earn between £3,700 and £13,700 per person helped into work, depending how hard it is to give support to an individual, with an initial payment of between £400 and £600.


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Mexican beauty queen killed in shootout












CULIACAN, Mexico (AP) — A 20-year-old state beauty queen died in a gun battle between soldiers and the alleged gang of drug traffickers she was traveling with in a scene befitting the hit movie “Miss Bala,” or “Miss Bullet,” about Mexico’s not uncommon ties between narcos and beautiful pageant contestants.


The body of Maria Susana Flores Gamez was found Saturday lying near an assault rifle on a rural road in a mountainous area of the drug-plagued state of Sinaloa, the chief state prosecutor said Monday. It was unclear if she had used the weapon.












“She was with the gang of criminals, but we cannot say whether she participated in the shootout,” state prosecutor Marco Antonio Higuera said. “That’s what we’re going to have to investigate.”


The slender, 5-foot-7-inch brunette was voted the 2012 Woman of Sinaloa in a beauty pageant in February. In June, the model competed with other seven contestants for the more prestigious state beauty contest, Our Beauty Sinaloa, but didn’t win. The Our Beauty state winners compete for the Miss Mexico title, whose holder represents the country in the international Miss Universe.


Higuera said Flores Gamez was traveling in one of the vehicles that engaged soldiers in an hours-long chase and running gun battle on Saturday near her native city of Guamuchil in the state of Sinaloa, home to Mexico’s most powerful drug cartel. Higuera said two other members of the drug gang were killed and four were detained.


The shootout began when the gunmen opened fire on a Mexican army patrol. Soldiers gave chase and cornered the gang at a safe house in the town of Mocorito. The other men escaped, and the gunbattle continued along a nearby roadway, where the gang’s vehicles were eventually stopped. Six vehicles, drugs and weapons were seized following the confrontation.


It was at least the third instance in which a beauty queen or pageant contestants have been linked to Mexico’s violent drug gangs, a theme so common it was the subject of a critically acclaimed 2011 movie.


In “Miss Bala,” Mexico’s official submission to the Best Foreign Language Film category of this year’s Academy Awards, a young woman competing for Miss Baja California becomes an unwilling participant in a drug-running ring, finally getting arrested for deeds she was forced into performing.


In real life, former Miss Sinaloa Laura Zuniga was stripped of her 2008 crown in the Hispanoamerican Queen pageant after she was detained on suspicion of drug and weapons violations. She was later released without charges.


Zuniga was detained in western Mexico in late 2010 along with seven men, some of them suspected drug traffickers. Authorities found a large stash of weapons, ammunition and $ 53,300 with them inside a vehicle.


In 2011, a Colombian former model and pageant contestant was detained along with Jose Jorge Balderas, an accused drug trafficker and suspect in the 2010 bar shooting of Salvador Cabanas, a former star for Paraguay‘s national football team and Mexico’s Club America. She was also later released.


Higuera said Flores Gamez’s body has been turned over to relatives for burial.


“This is a sad situation,” Higuera told a local radio station. She had been enrolled in media courses at a local university, and had been modeling and in pageants since at least 2009.


Javier Valdez, the author of a 2009 book about narco ties to beauty pageants entitled “Miss Narco,” said “this is a recurrent story.”


“There is a relationship, sometimes pleasant and sometimes tragic, between organized crime and the beauty queens, the pageants, the beauty industry itself,” Valdez said.


“It is a question of privilege, power, money, but also a question of need,” said Valdez. “For a lot of these young women, it is easy to get involved with organized crime, in a country that doesn’t offer many opportunities for young people.”


Sometimes drug traffickers seek out beauty queens, but sometimes the models themselves look for narco boyfriends, Valdez said.


“I once wrote about a girl I knew of who was desperate to get a narco boyfriend,” he said. “She practically took out a classified ad saying ‘Looking for a Narco’.”


The stories seldom end well. In the best of cases, a beautiful woman with a tear-stained face is marched before the press in handcuffs. In the worst of cases, they simply disappear.


“They are disposable objects, the lowest link in the chain of criminal organizations, the young men recruited as gunmen and the pretty young women who are tossed away in two or three years, or are turned into police or killed,” Valdez said.


___


Associated Press Writer E. Eduardo Castillo contributed to this report


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HTC confirms 5-inch ‘Deluxe’ smartphone won’t launch in Europe












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