Officials: Threats from Broadwell led to FBI probe

The scandal that brought down CIA Director David Petraeus started with harassing emails sent by his biographer and paramour, Paula Broadwell, to another woman, and eventually led the FBI to discover the affair, U.S. officials told The Associated Press on Saturday.

Petraeus quit Friday after acknowledging an extramarital relationship.

The official said the FBI investigation began several months ago with a complaint against Broadwell, a 40-year-old graduate of the U.S. Military Academy and an Army Reserve officer. That probe led agents to her email account, which uncovered the relationship with the 60-year-old retired four-star general, who earned acclaim for his leadership of the wars in Iraq and Afghanistan.

The identity of the other woman and her connection with Broadwell were not immediately known.

Concerned that the emails he exchanged with Broadwell raised the possibility of a security breach, the FBI brought the matter up with Petraeus directly, according to the official, who spoke on condition of anonymity because he was not authorized to publicly discuss the investigation. The FBI approached the CIA director because his emails in the matter were in most instances sent from a personal account, not his CIA one.

Petraeus decided to quit, abruptly ending a high-profile career that might have culminated with a run for the presidency, a notion he was believed to be considering.

Petraeus handed his resignation letter to President Barack Obama on Thursday, stunning many in the White House, the CIA and Congress. The news broke in the media before the House and Senate intelligence committees were briefed, officials say.

By Friday evening, multiple officials identified Broadwell, who spent the better part of a year reporting on Petraeus' time in Afghanistan.

Members of Congress said they want answers to questions about the affair that led to Petraeus's resignation.

House intelligence committee chairman Mike Rogers, R-Mich., and ranking member Dutch Ruppersberger, D-Md., will meet Wednesday with FBI deputy director Sean Joyce, and CIA acting director Michael Morell to ask questions, including how the investigation came about, according to a senior congressional staffer who spoke anonymously because he was not authorized to discuss the investigation publicly.

Petraeus has been married for 38 years to Holly Petraeus, the daughter of the West Point superintendent when he was a student at the New York school.

"He is truly remorseful about everything that's happened," said Steve Boylan, a retired army officer and former Petraeus spokesman who spoke with the former general on Saturday. In a phone call with Boylan Saturday, Petraeus lamented the damage he'd done to his "wonderful family" and the hurt he'd caused his wife.

"He screwed up, he knows he screwed up, now he's got to try to get past this with his family and heal," said Boylan.

Paula Broadwell interviewed the general and his close associates intensively for more than a year to produce the best-selling biography, "All In: The Education of General David Petraeus," which was written with Vernon Loeb, a Washington Post editor, and published in January. Since Petraeus's resignation on Friday, the book jumped from a ranking on Amazon of 76,792 on Friday to 111 by mid-Saturday.

The CIA was not commenting on the identity of the woman with whom Petraeus was involved.

Broadwell, who is married with two young sons, has not responded to multiple emails and phone messages. Broadwell planned to celebrate her 40th birthday party in Washington this weekend, with many reporters invited. But her husband emailed guests to cancel the event late Friday.

CIA officers long had expressed concern about Broadwell's unprecedented access to the director. She frequently visited the spy agency's headquarters in Langley, Va., to meet Petraeus in his office, accompanied him on his punishing morning runs around the CIA grounds and often attended public functions as his guest, according to two former intelligence officials.

As a military intelligence officer in the Army Reserve, Broadwell had a high security clearance, which she mentioned at public events as one of the reasons she was well-suited to write Petraeus's story.

But her access was unsettling to members of the secretive and compartmentalized intelligence agency, where husbands and wives often work in different divisions, but share nothing with each other when they come home because they don't "need to know."

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Justin Bieber and Selena Gomez have broken up, reports say

LOS ANGELES (Reuters) – Pop star Justin Bieber and his girlfriend, Selena Gomez, a Disney actress and singer, have broken up, ending a relationship that made them one of Hollywood’s most high-profile young couples, media reports said.

Bieber, 18, and Gomez, 20, disclosed their relationship in February 2011 when they appeared together at an Oscar night party after months of rumors of their dating.

E! Online late on Friday was the first to report the split, with other media outlets including US Weekly and People also saying the relationship was over. The reports cited unnamed sources close to the couple.

Representatives for Bieber and Gomez did not returns calls or emails on Saturday.

Bieber has released two No. 1 albums in just over a year – the holiday-themed “Under the Mistletoe” and his latest, “Believe.” In September, he topped Billboard’s “21 Under 21″ list of top young musical acts. It was his second year in a row with the title.

Gomez rose to fame as a teenager in the Walt Disney Co television series “Wizards of Waverly Place” and has enjoyed success as a pop singer.

(Reporting By Alex Dobuzinskis; Editing by Greg McCune and Peter Cooney)

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Recipes for Health: Sweet Potato and Apple Kugel — Recipes for Health

Andrew Scrivani for The New York Times

I’ve looked at a number of sweet potato kugel recipes, and experimented with this one a few times until I was satisfied with it. The trick is to bake the kugel long enough so that the sweet potato softens properly without the top drying out and browning too much. I cover the kugel during the first 45 minutes of baking to prevent this. After you uncover it, it’s important to baste the top every 5 to 10 minutes with melted butter.

 

4 eggs

Salt to taste

2 large sweet potatoes (1 3/4 to 2 pounds total), peeled and grated

2 slightly tart apples, like Gala or Braeburn, peeled, cored and grated

1 tablespoon fresh lime juice

1 tablespoon mild honey or agave nectar

3 to 4 tablespoons melted unsalted butter, as needed

 

1. Heat the oven to 375 degrees. Butter a 2-quart baking dish.

2. In a large mixing bowl, beat the eggs with salt to taste (I suggest about 1/2 teaspoon). Add the grated sweet potatoes and the apples. Pour the lime juice over the grated apples and sweet potatoes, then stir everything together. Combine the honey and 2 tablespoons of the melted butter and stir together, then toss with the sweet potato mixture and combine well.

3. Transfer the mixture to the prepared baking dish. Cover the dish tightly with foil and place in the oven. Bake 45 minutes. Remove the foil and brush the top of the kugel with melted butter. Return to the oven and bake for another 15 to 20 minutes or longer, brushing every 5 minutes with butter. The kugel is ready when the edges are browned, the top is browned in spots and the mixture is set. Remove from the heat and allow to cool for 10 to 15 minutes before serving.

Yield: 8 servings.

Advance preparation: You can make this a day ahead and reheat in a medium oven.

Nutritional information per serving (6 servings): 187 calories; 7 grams fat; 4 grams saturated fat; 1 gram polyunsaturated fat; 2 grams monounsaturated fat; 104 milligrams cholesterol; 28 grams carbohydrates; 4 grams dietary fiber; 91 milligrams sodium (does not include salt to taste); 5 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Walmart Black Friday 2012 coming even earlier

Cierra Hobson is a die-hard Black Friday shopper.

Every year she queues in front of one of her favorite stores, where she waits, in her pajamas, in hopes of bagging a good deal.

This year, Hobson and other deal-seekers will find some twists on the post-Thanksgiving Day ritual: coupons delivered via mobile phones and deeper discounts, maneuvers designed to make shopping easier for consumers and to set retailers on a strong start to the biggest shopping period of the year. But perhaps the biggest change will be an earlier start to the holiday rush.

Black Friday historically launched the day after Thanksgiving. But in recent years, stores have opened at 4 a.m., then midnight. Last year, retailers created a stir by opening at 10 p.m. Thursday. This year, Sears and Wal-Mart announced plans to open at 8 p.m.

"The name of the game this holiday season is who can do it best," said National Retail Federation spokeswoman Kathy Grannis.

"When (early openings) started in 2009, things were a little bit worse off in terms of consumer confidence," Grannis added. "At that point it was very necessary for retailers to get out there before anybody else, and that literally meant before midnight."

This year, holiday spending is expected to rise 4.1 percent, according to the retail federation. Last year, more than 24 percent of Black Friday shoppers were out before midnight and nearly 39 percent of shoppers were in the stores before 5 a.m.

Wal-Mart plans to greet shoppers with the likes of $89 Wii consoles and a $38 Blu-ray player. At Sears, there will be perks on sale items for members of its shopper loyalty program.

Both retailers are touting in-store pickup, allowing customers to buy items online and pick them up at the store, avoiding checkout lines.

The Disney Store plans to begin offering Black Friday deals on the Monday before Thanksgiving, though Disney stores will open at midnight in some markets and 5 a.m. in others. Ads leaked to Internet deal sites say Target stores will open at 9 p.m. on Thanksgiving.

Last year, Wal-Mart recorded its most customer traffic at 10 p.m. on Thanksgiving night, said spokesman Steven Restivo, adding that the retailer relied on focus groups, online surveys and other feedback to help it decide to open two hours earlier this year. "Our customers told us they loved our Thanksgiving event last year and wanted it again."

At Sears, staying open 26 consecutive hours through Black Friday gives its customers the flexibility they want and makes good business sense, said spokesman Brian Hanover.

"There's a segment of Sears customers who want that thrill of holiday shopping to start as soon as their Thanksgiving dinner ends," he said. "Traditionalists," he added, can wait for door busters at 4 a.m.

Despite discounts that often go beyond 50 percent, stores still make money on the sales, retail experts say. That's because shoppers in physical stores tend to spend more than they planned, said Sanjay Dhar, professor of marketing at the University of Chicago Booth School of Business.

In the store, "you end up making purchases that aren't as marked down, in addition to the door-buster deals," he said.

Opening earlier and staggering door-buster deals is not only a good way to make money, but it's also necessary for crowd control, retail watchers say. In 2008, a store employee was trampled to death in a Black Friday door-buster stampede at a Long Island, N.Y., Wal-Mart.

Hobson said she doesn't plan to start shopping Thanksgiving night, but she said she'll be up before dawn to catch sales at Express, a clothing store.

"Just knowing that everybody is doing the same thing I'm doing on the same day feels like the beginning of Christmas," she said.

Others worry that super-early openings could backfire.

Sheri Petras, CEO of CFI Group, a Michigan-based consultancy, said store employees grumpy from having to leave their Thanksgiving festivities will take out their anger on customers.

"Consumers will not spend as much with cranky employees," she said.

Some employees at Wal-Mart, Sears and Target say they'd like the day off.

Change.org, an activist website, said Friday that more than 20 new petitions were submitted by employees and consumers asking retailers to reconsider their Thanksgiving evening openings.

It's the second year the website has administered petitions calling for retailers to stick to traditional Black Friday openings.

In a statement distributed by OUR Walmart, a labor rights group, Wal-Mart employee Mary Pat Tifft, of Wisconsin, said she would be "devastated" if she had to work on Thanksgiving, because she is expecting her son home from Afghanistan for the holiday.

"This early opening is one more example of Walmart's disconnect with the workers who keep its stores running and disregard for all of our families. As the largest employer in the country, Walmart could be setting a standard for businesses to value families, but instead, this is one more Walmart policy that hurts the families of workers at its stores," she said.

crshropshire@tribune.com

Twitter @corilyns

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CIA Director David Petraeus quits post over affair

David Petraeus, the retired four-star general renowned for taking charge of the military campaigns in Iraq and then Afghanistan, abruptly resigned Friday as director of the CIA, admitting to an extramarital affair.

The affair was discovered during an FBI investigation, according to officials briefed on the developments. They spoke on condition of anonymity because they were not authorized to publicly discuss the matter.

Petraeus carried on the affair with his biographer and reserve Army officer Paula Broadwell, according to several U.S. officials with knowledge of the situation. They spoke anonymously because they were not authorized to discuss the investigation that led to the resignation publicly.

The FBI discovered the relationship by monitoring Petraeus' emails, after being alerted Broadwell may have had access to his personal email account, two of the officials said.

Broadwell did not respond to voice mail or email messages seeking comment.

Petraeus' resignation shocked Washington's intelligence and political communities. It was a sudden end to the public career of the best-known general of the post 9/11 wars, a man sometimes mentioned as a potential Republican presidential candidate. His service was effusively praised Friday in statements from lawmakers of both parties.

Petraeus, who turned 60 on Wednesday, told CIA employees in a statement that he had met with President Barack Obama at the White House on Thursday and asked to be allowed to resign. On Friday, the president accepted.

Petraeus told his staffers he was guilty of "extremely poor judgment" in the affair. "Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours."

He has been married for 38 years to Holly Petraeus, whom he met when he was a cadet at the U.S. Military Academy at West Point, N.Y. She was the daughter of the academy superintendent. They have two children, and their son led an infantry platoon in Afghanistan.

Obama said in a statement that the retired general had provided "extraordinary service to the United States for decades" and had given a lifetime of service that "made our country safer and stronger." Obama called him "one of the outstanding general officers of his generation."

The president said that CIA Deputy Director Michael Morell would serve as acting director. Morell was the key CIA aide in the White House to President George W. Bush during the Sept. 11, 2001, terror attacks.

"I am completely confident that the CIA will continue to thrive and carry out its essential mission," Obama said.

Administration officials said the White House was first notified about the Petraeus affair on Wednesday, the day after the election. Obama, who returned to the White House that evening after spending Election Day in Chicago, wasn't informed until Thursday morning.

The Senate and House intelligence committees were briefed on Petraeus' resignation only after the news was reported in the media, said a congressional staffer, speaking anonymously because the staffer was not authorized to publicly discuss the sensitive briefings.

The resignation comes at a sensitive time. The administration and the CIA have struggled to defend security and intelligence lapses before the attack that killed the U.S. ambassador to Libya and three others. It was an issue during the presidential campaign that ended with Obama's re-election Tuesday.

The CIA has come under intense scrutiny for providing the White House and other administration officials with talking points that led them to say the Benghazi attack was a result of a film protest, not a militant terror attack. It has become clear that the CIA was aware the attack was distinct from the film protests roiling across other parts of the Muslim world.

Morell rather than Petraeus now is expected to testify at closed congressional briefings next week on the Sept. 11 attacks on the consulate in Benghazi.

For the director of the CIA, being engaged in an extramarital affair is considered a serious breach of security and a counterintelligence threat. If a foreign government had learned of the affair, the reasoning goes, Petraeus or Broadwell could have been blackmailed or otherwise compromised. Military justice considers conduct such as an extramarital affair to be possible grounds for court-martial.

Failure to resign also could create the perception for the rank and file that such behavior is acceptable.

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Philip Roth says he’s done writing

NEW YORK (AP) — Exit, Philip Roth? Having conceived everything from turning into a breast to a polio epidemic in his native New Jersey, Roth has apparently given his imagination a rest.

The 79-year-old novelist recently told a French publication, Les inRocks, that his 2010 release “Nemesis” would be his last. Spokeswoman Lori Glazer of Houghton Mifflin Harcourt said Friday that she had spoken with Roth and that he confirmed his remarks. Roth’s literary agent, Andrew Wylie, declined comment.

Roth certainly produced, completing more than 20 novels over half a century and often turning out one a year. He won virtually every prize short of the Nobel and wrote such classics as “American Pastoral” and “Portnoy’s Complaint.”

His name will remain on new releases, if only because the Library of America has been issuing hardcover volumes of his work. Roth also is cooperating with award-winning biographer Blake Bailey on a book about his life.

The author chose an unexpected forum to break the news, but he has been hinting at his departure for years. He has said that he no longer reads fiction and seemed to say goodbye to his fictional alterego, Nathan Zuckerman, in the 2007 novel “Exit Ghost.”

Retirement is rarely the preferred option for writers, for whom the ability to tell stories or at least set down words is often synonymous with life itself. Poor health, discouragement and even madness are the more likely ways literary careers end. Roth apparently is fit and his recent novels had been received respectfully, if not with the awe of his most celebrated work.

“I don’t believe it,” Roth’s friend and fellow writer Cynthia Ozick said upon learning the news. “A writer who stops writing while still breathing has already declared herself posthumous.”

His parting words from “Nemesis”: “He seemed to us invincible.”

Roth’s interview appeared in French and has been translated, roughly, by The Associated Press. He tells Les inRocks that “Nemesis” was “mon dernier livre” (“My last book”) and refers to “Howard’s End” author E.M. Forster, and how he quit fiction in his 40s. Roth said he doesn’t plan to write a memoir, but will instead go through his archives and help ensure that Bailey’s biography comes out in his lifetime.

Explaining why he stopped, Roth said that at age 74 he became aware his time was limited and that he started re-reading his books of the past 20-30 years, in reverse order. He decided that he agreed with what the boxer Joe Louis had said late in life, that he had done the best he could with what he had.

Entertainment News Headlines – Yahoo! News

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FEMA Chief Tours Damaged NYU Langone Medical Center

The federal government’s emergency management chief trudged through darkened subterranean hallways covered with silt and muddy water Friday, as he toured one of New York City’s top academic medical centers in the aftermath of Hurricane Sandy. The basement of the complex, NYU Langone Medical Center in Manhattan, smelled like the hold of a ship — a mixture of diesel oil and water.

“You’re going to deal with the FUD — fear, uncertainty and doubt,” W. Craig Fugate, administrator of the Federal Emergency Management Agency, told NYU Langone officials afterward, as they retreated to a conference room to catalog the losses. “Don’t look at this. Think about what’s next.”

NYU Langone, with its combination of clinical, research and academic facilities, may have been the New York City hospital that was most devastated by Hurricane Sandy. What’s next is a spectacularly expensive cleanup.

Dr. Robert I. Grossman, dean and chief executive of NYU Langone, looking pale and weary — as if he were, indeed, struggling to hold back the FUD — estimated that the storm could cost the hospital $700 million to $1 billion. His estimate included cleanup, rebuilding, lost revenue, interrupted research projects and the cost of paying employees not to work.

As the hurricane raged, the East River filled the basement of the medical center, at 32nd Street and First Avenue, knocked out emergency power and necessitated the evacuation of more than 300 patients over 13 hours in raging wind, rain and darkness. It disrupted medical school classes and shut down high-level research projects operating with federal grants.

Mr. Fugate arrived to inspect the damage and help plot the institution’s recovery, the advance guard of what aides said would be a hospital task force. He was brought in by Senator Charles E. Schumer of New York, who kept saying that there was nothing like seeing the damage firsthand to understand how profound it really was.

“What was that movie — ‘Contagion?’ ” Mr. Schumer said, marveling at the hellish scene.

NYU Langone’s patients, a major source of revenue, have been scattered to other hospitals, creating a risk that they may never return. Dr. Grossman said he was counting on those patients’ loyalty.

John Sexton, president of New York University, which includes NYU Langone, and who also met with Mr. Fugate, raised fears that researchers might be lured away to other institutions because their grants were ticking away on deadline or because they must publish or perish. Outside the hospital, tanks of liquid nitrogen testified to the efforts to keep research materials from spoiling.

In inky blackness, the group stood at the brink of the animal section of the Smilow Research Center, where rodents for experiments had been kept, but they did not go inside. On Nov. 3, a memo sent to NYU Langone researchers said the animal section, or vivarium, was “completely unrecoverable.”

Dr. Grossman said that scientists had managed to save some rodents by raising their cages to higher ground.

A modernized lecture hall with raked seats used by medical students had been filled “like a bathtub,” he said, though it was dry on Friday. The library, he said, “is basically gone.”

Four magnetic resonance scanners, a linear accelerator and gamma knife surgery equipment, kept in the basement, were now worthless. Dr. Grossman said that in the future, he wanted to move such equipment, which is very heavy, to higher floors.

Electronic medical records were protected by a server in New Jersey, he said.

Richard Cohen, vice president for facilities operations, took the group past piles of sandbags and a welded steel door that had been blown out by the force of the flood. “That door was put in around 1959 to 1960, when doors were really doors,” Mr. Cohen said. “And this thing is completely torsionally twisted. I’ve never seen anything like that.”

Walking to the back of the hospital, Mr. Cohen used a loading dock as a measuring stick to estimate that the surge had risen to 14 ½ feet. “We were prepared for 12 feet, no problem,” Dr. Grossman said.

Dr. Grossman said it would take a couple of more weeks of assessing the damage to determine when the hospital could reopen. Outpatient business is already returning. Research and some inpatient services will come next.

Mr. Fugate said his agency would help cover the uninsured losses, and urged NYU Langone officials to move ahead.

At this point, Dr. Grossman said, he could only theorize as to why the generators had shut down. All but one generator is on a high floor, but the fuel tanks are in the basement. The flood, he said, was registered by the liquid sensors on the tanks, which then did what they were supposed to do in the event, for instance, of an oil leak. They shut down the fuel to the generators.

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Bargains disappearing for distressed properties, Zillow says

Bargains on bank-owned homes are quickly vanishing in the country's most competitive markets.

Since the start of the mortgage meltdown, repossessed homes have been considered the discount aisles of real estate. Now competition among investors and first-time home buyers for affordable digs is making those distressed properties less affordable, a new analysis by Zillow.com shows.

"They will get somewhat of a deal, depending on the market," Zillow chief economist Stan Humphries said. "But, just generally, you are going to get less of a deal today than you would have gotten in late 2009 or early 2010."

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The shrinking discounts underscore how real estate has recovered this year as low interest rates and high affordability have sucked buyers back into the market. The number of for-sale homes has also fallen to levels not seen since the housing boom as foreclosures ease and homeowners — many who still owe more on their properties than they are worth — hold off on listing their houses for sale.

Zillow looked at sale prices of bank-owned homes and used a model to determine what that property would have brought if it had not been sold by a bank. In Las Vegas and Phoenix, for instance, a foreclosed home in September sold for the same price as a regular property.

Discounts were also marginal on bank-owned homes in the Inland Empire and the Sacramento region, 1.8% and 0.7%, respectively, according to the analysis. Both of these areas have grown increasingly competitive after being savaged by the housing bust. In the Los Angeles area, the foreclosure discount was 4.2% in September, Zillow said.

Certain Midwest and East Coast cities appeared to have the biggest foreclosure discounts. The Pittsburgh area had a discount of 27.4%, with Cleveland at 25.8%, Cincinnati 20.2% and Baltimore 20%.

Analysts figured the national foreclosure discount at just 7.7%. That's a big difference from the dog days of the housing bust, when people snapping up foreclosures could expect a discount of 23.7%, Zillow said.

Home shoppers looking for dime-store values now face a frustrating hunt. Gary K. Kruger, a real estate agent in Hemet, has seen buyers consistently bid on homes above the asking price and still struggle to make deals. One of his clients, a first-time buyer looking for a home in Vista, has bid on three properties — one a regular sale, one a bank-owned home and one a short sale — and lost each time.

Properties that are good for rentals or first-time buyers, along with properties priced in the lower-end of the move-up market, are "very, very hot," Kruger said.

"I have not had a successful person purchase a foreclosed home that was not an investor for months," he said. "Things are selling so quickly."

The story is similar in the Las Vegas region, said Keith Lynam, a real estate agent and chairman of the Nevada Assn. of Realtors' legislative committee. The number of foreclosed homes on the market in the Las Vegas area has dwindled to less than 300, compared with about 7,000 at its peak, Lynam said.

One of his clients, a potential buyer with a sizable down payment, has made half a dozen unsuccessful offers in the last six months.

"There is just zero inventory," Lynam said.

Experts are also revisiting the notion that foreclosed homes really drag down property values. A working paper by the Federal Reserve Bank of Atlanta published in August found that although the homes of troubled borrowers did drag down values of surrounding homes, the effects were small.

That paper also found that the worst declines occurred before the home was repossessed, indicating that the declines stemmed from people abandoning their homes or letting them fall into disrepair.

Sean O'Toole, a real estate investor and founder of the website ForeclosureRadar.com, agreed with the Zillow analysis. Previous studies failed to take into account the nature of most foreclosures and their geography, he said. Typically, and particularly during the last five years, foreclosures have been concentrated in more traditionally affordable areas. So comparing the median home price of all foreclosed homes during the bust with the median home price of non-foreclosed homes results in an apple-to-oranges comparison, he said.

"The results that Zillow got make perfect sense to me, because there is actually more demand for REO and foreclosures, because people believe they are a deal," O'Toole said, using shorthand for the term "real estate owned," which is how banks refer to the properties on their books. "There is more demand for those."

Michael Novak-Smith, a real estate agent in the Riverside area who specializes in listing foreclosures for banks, said the market has reached a frenzy few would have expected so soon after the bust. One bank-owned home he listed about two weeks ago in Fontana for $145,000 attracted 157 offers. The seller took an all-cash offer.

"That is really telling, because a lot of these buyers think they'll just go out and get a repo," Novak-Smith said. "But buyers need to come in strong with their best offers, because you will get beat right out. An entry-level house with 157 offers? That's just mind-boggling to me."

alejandro.lazo@latimes.com

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Groupon lays off 80 sales employees

Chicago-based Groupon Inc. said Thursday it laid off 80 sales employees this week, reflecting ongoing efforts to automate some sales functions.

"Groupon announced several months ago it would be using technology to increase productivity through automation," the company said in a brief statement. "This week we reduced the sales team by approximately 80 members as part of that effort. We will always aim to optimize business operations wherever opportunities are identified."

While the daily deals company did not disclose where the affected employees were based, most of its sales staff is in Chicago. Groupon employed 11,866 people as of the third quarter. Of this, 5,087 employees were in sales, meaning the cuts represent less than 2 percent of its sales force. Compared with the second quarter, however, Groupon's sales staff has shrunk. In the second quarter, the company employed 5,587 people in sales out of a total headcount of 12,820.

In a conference call to discuss third-quarter earnings results, Chief Executive Andrew Mason said the company has spent six to nine months looking at technology tools that can replace inefficient manual processes, particularly in sales functions. Groupon had rapidly added headcount to keep pace with its supercharged growth in its early years and is now turning to automation, Mason said. For example, an internal tool used to personalize deals for consumers can also be used to predict the value of different leads in Groupon’s merchant database.

 "We've seen just in the last several months the productivity of our sales force improve, increasing the number of deals that a single sales person can close because of the new tools that we've released," Mason said, adding: "Those sorts of things are allowing us to increase productivity and continue to scale without adding the same headcount as we have in the past."

Groupon's third-quarter earnings, reported after the market closed, missed Wall Street expectations and prompted a sharp decline in the company's stock in after-hours trading.

wawong@tribune.com | Twitter @VelocityWong

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Exclusive: Google Ventures beefs up fund size to $300 million a year

SAN FRANCISCO (Reuters) - Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.

Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.

It puts the firm on the same footing as more established corporate venture funds such as Intel's Intel Capital, which typically invests $300-$500 million a year.

"It puts a lot more wood behind the arrow if we need it," said Bill Maris, managing partner of Google Ventures.

Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.

Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.

Every year, it typically funds 40-50 "seed-stage" deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.

LACKING SUPERSTARS

Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.

Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm's recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.

Soon it could have even more cash to play around with. "Larry has repeatedly asked me: 'What do you think you could do with a billion a year?'" said Maris, referring to Google chief executive Larry Page.

(Editing by Muralikumar Anantharaman)

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VP Joe Biden guest stars as celebrity crush on “Parks and Rec”

LOS ANGELES (Reuters) – Someone has a big crush on U.S. Vice President Joe Biden – and now she is getting to meet him.

Biden will make his TV acting debut with a cameo on NBC‘s comedy “Parks and Recreation” as the celebrity crush of actress Amy Poehler‘s ditzy local councilwoman Leslie Knope, NBC said on Thursday.

Biden, 69, will play himself in the episode “Leslie vs. April,” airing November 15, where Knope, a city councilwoman for the fictional small town of Pawnee, Indiana, has a surprise meeting with the vice president in Washington D.C.

Knope has long described her ideal man as having the “brains of George Clooney and the body of Joe Biden.”

“Meeting Vice President Biden was a thrill for me and for Leslie,” Poehler said in a statement.

“He was a good sport and a great improviser. The vice president maintained his composure while I harassed him and invaded his personal space. The nation of ‘Parks and Rec’ will be forever grateful,” she added.

The scenes with Biden were shot in July in the chambers of the vice president’s ceremonial office, during the TV show’s recent trip to the nation’s capital to film scenes for this season’s storylines.

The biggest challenge of landing Biden’s cameo was keeping it a secret before Tuesday’s U.S. elections. Airing the episode prior to November 6 could have been equivalent to a campaign contribution to advertise a candidate, executive producer Michael Schur told Entertainment Weekly.

“Parks and Recreation” follows the Pawnee Parks department and its tireless deputy Knope, who puts all her efforts into improving her little hometown.

This is a big season for Poehler’s character, who is finally elected into city government, gets engaged to campaign advisor Ben Wyatt and meets her political heroes including Senators Barbara Boxer, Olympia Snow and John McCain, who were featured in September’s season premiere.

(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)

TV News Headlines – Yahoo! News

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Ask an Expert: Wondering About Alzheimer’s? Ask Here

This week’s Ask the Expert features Dr. P. Murali Doraiswamy, who will answer questions related to Alzheimer’s disease and memory loss. He is a professor of psychiatry at Duke University Medical Center and an author of “The Alzheimer’s Action Plan.” Dr. Doraiswamy has also served as an adviser to government agencies, advocacy groups and businesses.

About five million Americans today live with Alzheimer’s disease, and a new diagnosis is made about every 70 seconds. Cases are expected to triple over the coming decades as baby boomers age.

Misperceptions and misdiagnoses are common about Alzheimer’s, which ranks second to only cancer among diseases that adults fear the most. Many people do not understand that there are dozens of causes for memory loss besides Alzheimer’s, including many that can be fully reversed if caught early.

Among the questions Dr. Doraiswamy is prepared to answer:

What are the best tests to determine if it is or isn’t Alzheimer’s?

How do you determine your own risk?

What are the family-care options? Medications for memory? Medications for behavior problems? Preventive strategies?

What has been learned from the latest clinical trials?

How can you improve your memory?

Please leave your questions in the comments section. Answers will be posted on Wednesday.

You can follow Booming via RSS here or visit nytimes.com/booming.

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Chicago sets brisk timeline for electric aggregation deal

The City of Chicago laid out a timeline Thursday for how it intends to quickly complete a deal that would move approximately 950,000 Chicagoans to a new electricity supplier.

The timing of the deal is important because Chicagoans stand to save the most money over Commonwealth Edison's rate between now and June 2013, when ComEd's prices are expected to drop because pricey contracts they entered into years ago will expire. The timeline has Chicagoans moving to the new supplier in February 2013.

In Tuesday's election, Chicago voters passed a proposal to allow the city to negotiate for better electricity prices on behalf of residential customers and small businesses. The city is one of hundreds of Illinois communities participating in so-called electricity aggregation and is by far the largest city in the nation to attempt such a large bulk purchase for electricity.

Michael Negron, deputy chief of policy and strategic planning for the mayor's office, said electricity suppliers have shown great interest in snagging Chicago's service. Nearly 100 people packed a conference Monday for the city's "request for qualifications" process. The bidders ranged from multi-billion corporations to smaller providers from all over the country, he said. Industry analysts say the deal could be worth hundreds of millions of dollar to the winning supplier or suppliers.

The timeline is as follows:

Nov. 14: Municipal aggregation ordinance introduced as substitute ordinance in city finance committee

Nov. 21: Bidder responses to request for qualifications due

Nov. 26 - Dec. 11: Finance committee will conduct two public hearings on aggregation ordinance

Early December: City and Delta Institute convene stakeholder process for identifying options for a portion of savings to go toward increased energy efficiency or the development of cleaner, renewable energy sources.

Dec. 5: Qualified pool of energy providers announced

Dec. 6: Issuance of request for pricing; responses due within days. The sole selection criteria at this point will be price because the RFQ phase will have screened out bidders based on their capacity, financial stability, customer service and ability to deliver cleaner energy.

Dec. 12: City Council considers aggregation ordinance

Mid/Late-December: Opt-out letters are sent to approximately 1 million customers

Early January: Opt-out data processed and final customer list prepared.

February: Participating Chicago customers are switched over the course of the month

March: All Chicago ratepayers who have not opted out are under the new supplier. City will announce its plan for investment of savings into cleaner energy or improved energy efficiency.

Read more about the Chicago electricity deal.

jwernau@tribune.com | Twitter @littlewern

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Jury begins deliberations in cop beating trial

Jurors at a trial involving a notorious 2007 beating of a female bartender by an off-duty Chicago officer began deliberations Wednesday that will include considering a rarely tested question -- does the Chicago Police Department have a code of silence?

In the final argument to jurors before deliberations began, an attorney for the bartender, Karolina Obrycka, decried what he described as decades of unofficial protection for officers.

“The evidence you heard didn't come from a television script or a movie script,” attorney Terry Ekl said. “There is an active, live code of silence. It is part of the culture of the Chicago Police Department.”

In the high-stakes trial at the U.S. Dirksen Courthouse, lawyers for Obrycka contended that the city as well as Officer Anthony Abbate are accountable for the beating and the cover-up that allegedly followed because of the longstanding code of silence.

Over 2 1/2 weeks, the jury heard expert evidence about the department's allegedly weak discipline of bad cops as well as testimony from numerous witnesses about an allegedly extensive effort to protect Abbate after the disturbing, videotaped beating at Jesse's Short Stop Inn was released and became an Internet sensation.

On Wednesday Ekl listed how a drunken Abbate engaged in a series of criminal acts on Feb. 19, 2007, that average citizens would be held accountable for -- assaulting and harassing bar patrons, beating and kicking Obrycka and then driving home intoxicated.

“He doesn't have any concern at all,” Ekl said. “It's in his DNA. It's part of his life. He's a Chicago police officer. You think someone from the … district is going to come over and arrest him? No.”

The jury deliberated for about five hours Wednesday before recessing until next week because of scheduling conflicts for the judge.

Ekl's closing argument was interrupted by several objections from city attorneys, particularly when he criticized their defense for using diversions and ignoring or distorting evidence.

“When you hear the arguments, is it any wonder the code of silence has existed for decades?” Ekl said.

Abbate, who was ultimately convicted of a felony and fired from the police force, potentially faces liability over allegations that he conspired with friends, including police pals, to threaten Obrycka not to pursue charges against him. If the jury agrees that a code of silence exists, the city could be held liable for the vicious beating.

From the start, city attorneys said they were fighting Obrycka's lawsuit on principle. Abbate was off-duty and his actions had nothing to do with his work as a Chicago police officer, they said.

They have blamed his actions that night on his extenstive drinking, calling it “absurd” that Abbate was counting on police to protect him. They also argued that he fled after the attack, showing that he feared getting in trouble, and was later investigated by the department.

“It is clear from the video that Anthony Abbate acted out of rage,” attorney Barrett Rubens, representing the city, said Tuesday in her closing argument. “… Anthony Abbate did what he did because he was hammered.”

In his closing, Ekl also addressed a messy and complicated aspect of the case -- the numerous conflicting stories from Chicago police officials and Cook County prosecutors about how aggressively they wanted to punish Abbate.

City attorneys have maintained that Chicago police wanted to pursue felonies -- even though two department investigators had Obrycka sign a misdemeanor complaint within three days of the beating.

Debra Kirby, then head of the department's Internal Affairs Division, testified that she conveyed her desire for felony charges to Thomas Bilyk, a Cook County prosecutor who was supervising the Abbate investigation, in a phone call days after the beating.

But Bilyk denied the conversation happened. In her closing argument, Rubens suggested Bilyk didn't tell the truth and reminded jurors of a police report in which a Chicago detective said that Bilyk had called for lesser misdemeanor charges at a Feb. 23 meeting.

But Ekl, with his voice rising, told the jury Wednesday that the report was dated 23 days after the meeting -- and just two days after Abbate surrendered to police and pressure was mounting on the state's attorney's office to upgrade the misdemeanor charges.

asweeney@tribune.com

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Apple slides to five-month low, uncertainty grows

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Taylor Swift reigns over Billboard 200, Meek Mill debuts high

LOS ANGELES (Reuters) – Country-pop star Taylor Swift held onto the top spot on the Billboard 200 album chart on Wednesday as her latest album “Red” kept rapper Meek Mill from the top spot.

“Red,” Swift’s fourth studio album safely took the No. 1 position after selling 344,000 copies according to figures from Nielsen SoundScan.

Last week, “Red” scored the highest first week U.S. sales in a decade after selling 1.2 million copies. The album has outsold One Direction’s “Up All Night” to become the second-biggest album of 2012, behind Adele’s juggernaut record “21,” which has sold more than 4 million copies this year.

Rapper Meek Mill entered the chart at No. 2 with his debut studio album “Dreams & Nightmares,” selling 164,000 copies. The rapper collaborated with fellow Maybach Music artists for his debut, including Trey Songz, Wale, Rick Ross and Mary J. Blige.

Ahead of the holiday season, two festive albums debuted on the chart, with veteran crooner Rod Stewart’s “Merry Christmas Baby” at No. 3 and Trans-Siberian Orchestra’s extended play record “Dreams of Fireflies (On a Christmas Night)” at No. 9.

Country singer Toby Keith landed at No. 6 with his latest album “Hope on the Rocks,” following his appearance and best music video win at the County Music Association (CMA) awards last week.

Country group Little Big Town also saw a boost from their CMA vocal group of the year win as their album “Tornado” climbed the chart to No. 10.

Canadian singer Neil Young and his band Crazy Horse scored their second top ten album this year with “Psychedelic Pill” at No. 8, following their “Americana” album in June.

Over on the Digital Songs chart, Korean rapper Psy held the top spot with his infectious dance-pop single “Gangnam Style,” while Bruno Mars’ “Locked Out of Heaven” remained at No. 2 and Ke$ ha’s “Die Young” was a non-mover at No. 3.

(Reporting by Piya Sinha-Roy, editing by Jill Serjeant)

Celebrity News Headlines – Yahoo! News

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Ask an Expert: Wondering About Alzheimer’s? Ask Here

This week’s Ask the Expert features Dr. P. Murali Doraiswamy, who will answer questions related to Alzheimer’s disease and memory loss. He is a professor of psychiatry at Duke University Medical Center and an author of “The Alzheimer’s Action Plan.” Dr. Doraiswamy has also served as an adviser to government agencies, advocacy groups and businesses.

About five million Americans today live with Alzheimer’s disease, and a new diagnosis is made about every 70 seconds. Cases are expected to triple over the coming decades as baby boomers age.

Misperceptions and misdiagnoses are common about Alzheimer’s, which ranks second to only cancer among diseases that adults fear the most. Many people do not understand that there are dozens of causes for memory loss besides Alzheimer’s, including many that can be fully reversed if caught early.

Among the questions Dr. Doraiswamy is prepared to answer:

What are the best tests to determine if it is or isn’t Alzheimer’s?

How do you determine your own risk?

What are the family-care options? Medications for memory? Medications for behavior problems? Preventive strategies?

What has been learned from the latest clinical trials?

How can you improve your memory?

Please leave your questions in the comments section.

You can follow Booming via RSS here or visit nytimes.com/booming.

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What electricity aggregation means for your bill

Voters in 81 communities in Commonwealth Edison's service territory voted Tuesday to allow their local governments to shop for electricity on their behalf.

Vote totals are being tallied, but early results indicate that measures to allow so-called electricity aggregation passed in the vast majority of communities, including Chicago.

Illinois consumers have been allowed to shop for electricity for more than a decade, but the concept didn't take off until 2011, when legislators enacted a law allowing municipalities to negotiate for better rates on behalf of residents.

If your town voted yes to aggregation, here's what you need to know:

The switch to a new supplier won't happen right away.

Even with referendum passage, the process is just beginning. Communities need time to invite suppliers to bid, create a plan of governance, reach out to residents, choose a supplier and provide an opt-out period. Based on past deals, you can expect to be switched over to a new supplier sometime from January to March.

You will have an opportunity to opt out.

Check your mailbox in the coming months for instructions from your municipality about how to opt out of the program. If you opt out, you will remain with ComEd or you can shop for electricity on your own.

You can do nothing.

Unless you opt out, you will be automatically switched to the supplier your municipality chooses. Excluded are customers who have switched to suppliers of their own choosing or who are on an alternative pricing plan with ComEd. In general, those customers have not been included in aggregation deals.

You are a ComEd customer.

ComEd is responsible for delivering your electricity and keeping the lights on, regardless of who supplies your power. ComEd, a "wires only" utility, makes its money from delivering electricity, not from supplying it. Your new bill will look like your old bill, except that the portion titled "electricity supply services" will have a new rate and include the new supplier's name.

You are not alone.

Residents of 175 ComEd communities have switched suppliers and have cut their bills about in half through May 2013, paying an average of 4.83 cents per kilowatt-hour.

Customer beware, you may not save money.

Electricity pricing is constantly changing, and deals that look good now may not look great later. Several municipalities are locked into 12- and 24-month contracts with alternative suppliers that are higher than what consumers could find by shopping on their own, and they come with early termination fees. Some towns have not required suppliers to beat ComEd's prices if they drop below current rates. Some have customers automatically stay on with a supplier after a contract expires, even if rates increase.

Expect to be popular.

Electricity suppliers will hound you to pick them and opt out of aggregation. In the process, savvy consumers may be able to snag discounts on hotels and restaurants. But if you plan to shop, refer to the Illinois Commerce Commission (pluginillinois.org), Power2Switch (power2switch.com) and the Citizens Utility Board (citizensutilityboard.org).

Beware of scammers.

About 44 percent of people know nothing about electricity aggregation, according to a recent poll, which can make them ripe for victimization by scammers and identity thieves. You do not have to sign anything or provide personal information to be part of municipal aggregation.

SOURCES: City of Chicago, Power2Switch, Citizens Utility Board, Commonwealth Edison, Environmental Law & Policy Center

jwernau@tribune.com

Twitter @littlewern

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Battleground states too close to call

Election Day arrives, sending voters streaming to the polls to pick the next president and the candidates themselves scrounging for last-minute votes. The presidential contest is likely to be close, hinging on a few key states like Ohio

A down-to-the-wire presidential election headed toward a final resolution tonight, with President Obama closing in on victory over Mitt Romney in a race that could hinge on a trio of smaller Midwest and Western states.

Election night had all the makings of a cliffhanger, with decisive ballots still being tallied in the big battleground states of Ohio, Florida and Virginia. Given the tightness of the initial results there, the counting might yet stretch at least into early Wednesday before a winner could be declared in those states.

But an alternate path to victory loomed for Obama: Iowa, Colorado and Nevada, whose combined electoral votes would be enough to propel him over the 270 threshold clinching a second term.  All three state were close in early returns.

Florida, Ohio and Virginia -- all virtual must-wins for Romney -- were too close to call, based on partial returns. If he swept all three, he would still need one more state, probably Colorado or Nevada, to win the election.

As expected, Obama took more than a dozen states, and the District of Columbia, including Illinois, Vermont, Rhode Island and Maryland. Romney’s late play for Pennsylvania, a state no Republican has carried since 1988, fell short.  The GOP nominee also lost his home state of Massachusetts and his native Michigan.  And the after-effects of Hurricane Sandy didn’t prevent Obama from winning New York and New Jersey, along with the rest of the heavily Democratic Northeast.

Romney, meantime, turned the electoral map red across a vast stretch of the South, Great Plains and much of the Mountain West. He won Indiana, the first state to switch from Obama in 2008 back to the GOP. But he had yet to take a single one of the swing states, while Obama picked up the battlegrounnds of New Hampshire and, according to network projections, Wisconsin.

The battlegrounds that held the keys to the White House were anything but settled — Virginia, Ohio and Florida among them — with long lines in many locations long after poll-close time.

Romney led in the national popular vote with 17.9 million votes, or 50 percent. Obama had 17.2 million, or 48 percent, with 19 percent of precincts tallied.

The former Massachusetts governor also held an early electoral vote advantage, 153-123, with 270 needed for victory, although he lost his home state of Michigan as well as Massachusetts, where he served as governor.

Obama led in Pennsylvania, where Romney campaigned twice in the race's closing days.

Obama is the winner of the 16 electoral votes in Michigan -- the state that benefitted the most from the auto industry bailout. Michigan, where Mitt Romney's father served as governor, wasn't heavily contested by the two campaigns, though it did see some late GOP advertising.

Obama also won in New Jersey, battered last week by Hurricane Sandy.

Romney, meanwhile, has added Alabama's nine electoral votes to his column. Romney also captured the 38 electoral votes at stake in Texas, and added wins in Louisiana, Mississippi, Kansas, South Dakota, North Dakota, Arkansas and Wyoming. He also won at least four of Nebraska's five votes.

Obama won in New York, with 29 electoral votes. At last count, Romney has 153 electoral votes to Obama's 123.

Obama and Romney were locked in a tight race with battleground states too close to call. Given the tightness of the initial results, there was a possibility that the counting could stretch at least into Wednesday before a winner could be declared.

Shortly after polls closed 20 states were called for one candidate or the other, with Obama taking Illinois, Vermont, Rhode Island and Romney’s home state of Massachusetts, among others.  Romney carried a swath of southern states, including Alabama, Oklahoma, Kentucky and South Carolina, as well as West Virginia and Indiana -- the latter the first state to switch from Obama in 2008 back to the GOP.

But the election was riding on the results in no more than 10 battlegrounds, including Virginia, Florida and Ohio -- all virtual must-wins for Romney and too close to call in the early going.

Democrats were encouraged by early vote-counting in Ohio and Florida that showed the president holding slight leads in each. Romney held an early lead in a third battleground state, Virginia.

Romney needs all three of those states to navigate a narrow path to the presidency, while Obama can afford to lose one or two of them and still win a second four-year term.

Voters also chose a new Congress to serve alongside the man who will be inaugurated president in January, Democrats defending their majority in the Senate, and Republicans in the House. Eleven states picked governors, and ballot measures ranging from gay marriage to gambling dotted ballots.

The economy was rated the top issue by about 60 percent of voters surveyed as they left their polling places. About 4 in 10 said it is on the mend.

More than that said conditions are as bad or getting worse, but a significant fraction said former President George W. Bush bears more of the responsibility than Obama. The survey was conducted for The Associated Press and a group of television networks.

The long campaign's cost soared into the billions, much of it spent on negative ads, some harshly so.

Romney raced to Ohio and Pennsylvania for Election Day campaigning and projected confidence as he flew home to Massachusetts to await the results. "We fought to the very end, and I think that's why we'll be successful," he said, adding that he had finished writing a speech anticipating victory.

Obama made get-out-the-vote calls from a campaign office near his home in Chicago and found time for his traditional Election Day basketball game with friends. Addressing his rival, he said, "I also want to say to Gov. Romney, 'Congratulations on a spirited campaign.' I know his supporters are just as engaged, just as enthusiastic and working just as hard today." Romney, in turn, congratulated the president for running a "strong campaign."

Other than the battlegrounds, big states were virtually ignored in the final months of the campaign. Romney wrote off New York, Illinois and California, while Obama made no attempt to carry Texas, much of the South or the Rocky Mountain region other than Colorado.

There were 33 Senate seats on the ballot, 23 of them defended by Democrats and the rest by Republicans.

The GOP needed a gain of three for a majority if Romney won, and four if Obama was re-elected. Neither Majority Leader Harry Reid of Nevada nor GOP leader Mitch McConnell of Kentucky was on the ballot, but each had high stakes in the outcome.

All 435 House seats were on the ballot, including five where one lawmaker ran against another as a result of once-a-decade redistricting to take population shifts into account. Democrats needed to pick up 25 seats to gain the majority they lost two years ago.

Depending on the outcome of a few races, it was possible that white men would wind up in a minority in the Democratic caucus for the first time.

Speaker John A. Boehner, R-Ohio, raised millions to finance get-out-the-vote operations in states without a robust presidential campaign, New York, Illinois and California among them. His goal was to minimize any losses, or possibly even gain ground, no matter Romney's fate. House Democratic leader Rep. Nancy Pelosi of California campaigned aggressively, as well, and faced an uncertain political future if her party failed to win control.

In gubernatorial races, Republicans hoped to gain seats after Democratic retirements in New Hampshire, Washington, Montana and especially North Carolina.

The Los Angeles Times, the Associated Press and Reuters contributed.

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Exclusive - Amazon to win EU e-book pricing tussle with Apple

BRUSSELS (Reuters) - European Union regulators are to end an antitrust probe into e-book prices by accepting an offer by Apple and four publishers to ease price restrictions on Amazon, two sources said on Tuesday.

That decision would hand online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in the fast-growing market publishers hope will boost revenue and increase customer numbers.

"Faced with years of court battles and uncertainty I can understand why some of these guys decided to fold their cards and take the whipping," said Mark Coker, founder of Smashwords, an ebook publisher and distributor that works with Apple.

"It's certainly another win for Amazon," he added. "I have not seen the terms of the final settlement, but my initial reaction is that it places restrictions on what publishers can do, slowing them down just when they need to be more nimble."

A spokesman at the EU Commission said its investigation was not yet finished. Amazon and Apple declined to comment.

In September, Apple and the publishers offered to let retailers set prices or discounts for a period of two years, and also to suspend "most-favored nation" contracts for five years.

Such clauses bar Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA's Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, from making deals with rival retailers to sell e-books more cheaply than Apple.

The agreements, which critics say prevent Amazon and other retailers from undercutting Apple's charges, sparked an investigation by the European Commission in December last year.

Pearson Plc's Penguin group, which is also under investigation, did not take part in the offer.

The EU antitrust authority, which in September asked for feedback from rivals and consumers about the proposal, has not asked for more concessions, said one of sources.

"The Commission is likely to accept the offer and announce its decision next month," the source said on Tuesday.

Antoine Colombani, spokesman for competition policy at the European Commission, said: "We have launched a market test in September and our investigation is still ongoing."

Amazon declined to comment, while Apple did not respond to an email seeking comment.

Companies found guilty of breaching EU rules could be fined up to 10 percent of their global sales, which in Apple's case could reach $15.6 billion, based on its 2012 fiscal year.

AGGREGATE PRICING

UBS analysts estimate that e-books account for about 30 percent of the U.S. book market and 20 percent of sales in Britain but are minuscule elsewhere. When Amazon launched its Kindle e-reader, it charged $9.99 per book.

Apple's agency model let publishers set prices in return for a 30 percent cut to the maker of iPhone and iPad.

The U.S. Department of Justice is investigating e-book prices. HarperCollins, Simon & Schuster and Hachette have settled, but Apple, Pengin Group and Macmillan have not.

The DOJ settlement required that retailers must at least break even selling all ebooks from a publisher's available list, according to Coker and Joe Wikert, general manager and publisher at O'Reilly Media Inc.

It was not clear if EU regulators will include a similar requirement, which would prohibit Amazon from pricing all ebooks at a loss, said Wikert, a former publishing executive.

In the United States, Amazon will likely price popular titles at a loss and try to make up the difference on a publisher's other ebooks, he said.

Coker said any such rule could be dangerous in Europe, which still has distinct markets.

"It could allow a single retailer to charge full price in a large market like the U.K., and then sell below cost or for free in multiple smaller markets as a strategy to kill regional ebook retailing upstarts before they take root," Coker said.

FROWNING ON ONLINE TRADE CURBS

Antitrust regulators tend to frown on restrictions on online trade and the case is a good example, said Mark Tricker, a partner at Brussels-based law firm Norton Rose.

"This case shows the online world continues to be a major focus for the Commission," he said.

"These markets change very quickly and if you don't stamp down on potential infringements of competition rules, you can have significant consequences."

(Additional reporting by Alistair Barr in San Francisco; Editing by Rex Merrifield, David Goodman and David Gregorio)

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Rihanna unveils Chris Brown duet “Nobodies Business”

LOS ANGELES (Reuters) – R&B star Rihanna unveiled a duet entitled “Nobodies Business” with ex-boyfriend Chris Brown on Tuesday, three years after Brown was charged with assaulting her.

The song was part of an official track list that Barbadian singer Rihanna tweeted to her followers for her upcoming album “Unapologetic,” and comes after weeks of speculation in the media that the couple have rekindled their romance being spotted together at numerous events.

While Rihanna, 24, has stayed mum on her relationship status with Brown, the “Turn Up The Music” singer attended Rihanna‘s Halloween party last week and tweeted a photograph of himself dressed in Arab robes and a rifle.

Brown, 23, is currently halfway through his five-year probation after pleading guilty to assaulting Rihanna on the eve of the Grammy awards in 2009. He was ordered to complete community service and a domestic violence program.

Brown was given permission by a Los Angeles judge to embark on his European tour at a recent hearing overseeing his progress on his probation.

The former couple have had a tumultuous relationship in the last three years, including a restraining order against Brown following the assault.

But recently the two singers have made peace, coming together on a remix of Rihanna‘s raunchy song “Birthday Cake” earlier this year.

The Barbadian singer told Oprah Winfrey in an emotional interview in August that she and Brown now had a “very close friendship,” and that she still loved him.

Other collaborations on Rihanna‘s upcoming “Unapologetic” album include rapper Eminem, newcomer singer-songwriter Mikky Ekko and rapper Future.

(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)

Celebrity News Headlines – Yahoo! News

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Alarm Over India’s Dengue Fever Epidemic

Enrico Fabian for The New York Times

A man at the Yamuna River, an ideal breeding ground for mosquitoes. Filthy standing water abounds in New Delhi. More Photos »

NEW DELHI — An epidemic of dengue fever in India is fostering a growing sense of alarm even as government officials here have publicly refused to acknowledge the scope of a problem that experts say is threatening hundreds of millions of people, not just in India but around the world.

India has become the focal point for a mosquito-borne plague that is sweeping the globe. Reported in just a handful of countries in the 1950s, dengue (pronounced DEN-gay) is now endemic in half the world’s nations.

“The global dengue problem is far worse than most people know, and it keeps getting worse,” said Dr. Raman Velayudhan, the World Health Organization’s lead dengue coordinator.

The tropical disease, though life-threatening for a tiny fraction of those infected, can be extremely painful. Growing numbers of Western tourists are returning from warm-weather vacations with the disease, which has reached the shores of the United States and Europe. Last month, health officials in Miami announced a case of locally acquired dengue infection.

Here in India’s capital, where areas of standing water contribute to the epidemic’s growth, hospitals are overrun and feverish patients are sharing beds and languishing in hallways. At Kalawati Saran Hospital, a pediatric facility, a large crowd of relatives lay on mats and blankets under the shade of a huge banyan tree outside the hospital entrance recently.

Among them was Neelam, who said her two grandchildren were deathly ill inside. Eight-year-old Sneha got the disease first, followed by Tanya, 7, she said. The girls’ parents treated them at home but then Sneha’s temperature rose to 104 degrees, a rash spread across her legs and shoulders, and her pain grew unbearable.

“Sneha has been given five liters of blood,” said Neelam, who has one name. “It is terrible.”

Officials say that 30,002 people in India had been sickened with dengue fever through October, a 59 percent jump from the 18,860 recorded for all of 2011. But the real number of Indians who get dengue fever annually is in the millions, several experts said.

“I’d conservatively estimate that there are 37 million dengue infections occurring every year in India, and maybe 227,500 hospitalizations,” said Dr. Scott Halstead, a tropical disease expert focused on dengue research.

A senior Indian government health official, who agreed to speak about the matter only on the condition of anonymity, acknowledged that official figures represent a mere sliver of dengue’s actual toll. The government only counts cases of dengue that come from public hospitals and that have been confirmed by laboratories, the official said. Such a census, “which was deliberated at the highest levels,” is a small subset that is nonetheless informative and comparable from one year to the next, he said.

“There is no denying that the actual number of cases would be much, much higher,” the official said. “Our interest has not been to arrive at an exact figure.”

The problem with that policy, said Dr. Manish Kakkar, a specialist at the Public Health Foundation of India, is that India’s “massive underreporting of cases” has contributed to the disease’s spread. Experts from around the world said that India’s failure to construct an adequate dengue surveillance system has impeded awareness of the illness’s vast reach, discouraged efforts to clean up the sources of the disease and slowed the search for a vaccine.

“When you look at the number of reported cases India has, it’s a joke,” said Dr. Harold S. Margolis, chief of the dengue branch at the Centers for Disease Control and Prevention in Atlanta.

Neighboring Sri Lanka, for instance, reported nearly three times as many dengue cases as India through August, according to the World Health Organization, even though India’s population is 60 times larger.

Hari Kumar contributed reporting.

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