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

Issei Kato/Reuters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nicola Clark and Christopher Drew contributed reporting.

This article has been revised to reflect the following correction:

Correction: January 19, 2013

An earlier version of this article misstated the response of regulators after small cracks were found in the wings of the Airbus A380, and the year those cracks were found. Regulators required inspections, followed by fixes; they did not order the plane grounded. And the discovery was made in 2012, not two years ago.

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

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

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

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

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With Graph Search, Facebook Bets on More Sharing

SAN FRANCISCO — Facebook’s greatest triumph has been to persuade a seventh of the world’s population to share their personal lives online.

Now the social network is taking on its archrival, Google, with a search tool to mine that personal information, just as people are growing more cautious about sharing on the Internet and even occasionally removing what they have already put up.

Whether Facebook’s more than one billion users will continue to divulge even more private details will determine whether so-called social search is the next step in how we navigate the online world. It will also determine whether Facebook has found a business model that will make it a lot of money.

“There’s a big potential upside for both Facebook and users, but getting people to change their behaviors in relation to what they share will not be easy,” said Andrew T. Stephen, who teaches marketing at the University of Pittsburgh and studies consumer behavior on online social networks.

This week, Facebook unveiled its search tool, which it calls graph search, a reference to the network of friends its users have created. The company’s algorithms will filter search results for each person, ranking the friends and brands that it thinks a user would trust the most. At first, it will mine users’ interests, photos, check-ins and “likes,” but later it will search through other information, including status updates.

“While the usefulness of graph search increases as people share more about their favorite restaurants, music and other interests, the product doesn’t hinge on this,” a Facebook spokesman, Jonathan Thaw, said.

Nevertheless, the company engineers who created the tool — former Google employees — say that the project will not reach its full potential if Facebook data is “sparse,” as they call it. But the company is confident people will share more data, be it the movies they watch, the dentists they trust or the meals that make their mouths water.

The things people declare on Facebook will be useful, when someone searches for those interests, Tom Stocky, one of the creators of Facebook search, said in an interview this week. Conversely, by liking more things, he said, people will become more useful in the eyes of their friends.

“You might be inclined to ‘like’ what you like so when your friends search, they’ll find it,” he said. “I probably would never have liked my dentist on Facebook before, but now I do because it’s a way of letting my friends know.”

Mr. Stocky offered these examples of how more information may be desirable: A single man may want to be discovered when a friend of a friend is searching for eligible bachelors in San Francisco or a restaurant that stays open late may want to be found by a night owl.

“People have shared all this great stuff on Facebook,” Mr. Stocky said. “It’s latent value. We wanted a way to unlock that.”

Independent studies suggest that Facebook users are becoming more careful about how much they reveal online, especially since educators and employers typically scour Facebook profiles.

A Northwestern University survey of 500 young adults in the summer of 2012 found that the majority avoided posting status updates because they were concerned about who would see them. The study also found that many had deleted or blocked contacts from seeing their profiles and nearly two-thirds had untagged themselves from a photo, post or check-in.

“These behavioral patterns seem to suggest that many young adults are less keen on sharing at least certain details about their lives rather than more,” said Eszter Hargittai, an associate professor of communication studies at Northwestern, who led the yet unpublished study among men and women aged 21 and 22.

Also last year, the Pew Internet Center found that social network users, including those on Facebook, were more aggressively pruning their profiles — untagging photos, removing friends and deleting comments.

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Cease-Fire in Myanmar With Kachin Rebels Fails to Take Hold

BANGKOK — A cease-fire ordered by the Myanmar government failed to take hold on Saturday, with rebels and the government blaming each other for fighting that continued through the day.

But ethnic Kachin rebels and at least one independent observer said that the fighting was less intense than in previous days and that the government’s aerial bombardments had stopped. Both the government and the rebels called for a negotiated settlement, although they seemed far from agreeing on the fundamental question of how much autonomy the Kachin ethnic group should have — the emotionally charged issue at the root of the fighting.

“We have been inviting the K.I.O. into the peace process, and here I would like to invite them again,” President Thein Sein said Saturday, referring to the Kachin Independence Organization, the political wing of the group fighting the government.

Mr. Thein Sein spoke as representatives from at least two dozen countries and international organizations including the World Bank gathered in the Myanmar capital, Naypyidaw, for a conference on offering assistance to the country as it moves toward democracy after decades of military rule.

Many observers have said that the government may have decided to offer a unilateral cease-fire on Friday to coincide with the meeting since national reconciliation with Myanmar’s many ethnic groups is seen as a measure of the success of Mr. Thein Sein’s ambitious democratic reforms.

Although the government has signed cease-fire agreements with other minority groups, it has been fighting the Kachin for the last year and a half after an earlier truce collapsed. The conflict had intensified in recent weeks.

Despite the continued battles Saturday, there were some faint but encouraging signs of progress toward a peaceful settlement. The Kachin Independence Organization issued a statement calling for the cease-fire to include all of Kachin State, the mountainous, northernmost part of Myanmar and the homeland of the Kachin, suggesting it welcomed a halt to the fighting.

The government’s announcement on Friday mentioned only the area near the border with China known as Lajayang, but a government spokesman, Ye Htut, said by telephone on Saturday that the cease-fire would encompass “the whole conflict area.”

And yet the developments on Saturday followed a familiar pattern in Myanmar — a seeming disconnect between the orders of the president, who is not the commander in chief under the country’s new constitution, and the actions of the military. Mr. Thein Sein has said before that the army should only defend itself, but some analysts say that leaves it wide latitude.

On Saturday, Mr. Ye Htut acknowledged the fighting but said that it had been initiated by the rebels and that the troops had been acting in self-defense.

La Nan, a spokesman for the Kachin Independence Organization, said there were Myanmar artillery attacks and “skirmishes” on Saturday morning around Lajayang, at the very place and time the cease-fire was supposed to take effect.

Ryan Roco, an American photographer who was in the area, said there were no airstrikes and “minimal ground fighting” on Saturday. “But the shelling continued all day,” he said by telephone.

One fighter who is allied with the Kachin rebels, Min Htay, posted on his Facebook page that the Kachin were broadcasting a message over loudspeakers to government soldiers, telling them to stop fighting because the president had issued a cease-fire. Mr. Min Htay appeared to be suggesting that the government troops were not aware of the order, a possible sign of a rift between the military leadership and the president.

Mr. Ye Htut denied there was any such disagreement. “Government troops always obey President U Thein Sein’s order,” he said.

Myanmar’s many ethnic groups, which make up about one-third of the population, have called for a greater federal system, but Mr. Thein Sein appears to favor a more centralized union that would preserve the pre-eminence of the majority Burmese ethnic group. The current constitution calls for a hybrid system of local administrations and a powerful central government.

Wai Moe contributed reporting from Yangon, Myanmar.

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The Lede: Live Blog: Inside the Fed's 2007 Deliberations

On Friday the Federal Reserve released the transcripts of its discussions in 2007, the year the housing market, the financial markets, and the broader economy began to unravel. Reporters from The Times are sharing their findings on what the transcripts reveal in the blog entries and tweets below.

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Well: Your Twitter Tips for Going Vegan

In this week’s Well column, “How to Go Vegan,”, we asked you to send in your favorite tips and tricks for adopting a solely plant-based diet on Twitter. We received a range of responses, from quirky ingredient combinations that replicate a nonvegan dish to simple mantras to get you in a vegan frame of mind. Here are some of our favorites. To see the entire list of submissions, visit the hashtag, #vegantips.

Let’s start with some simple recipes that may satisfy your vegan craving:

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Add some of your favorite ingredients:

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Don’t forget to love your legumes:

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And what about some tips to keep you on the vegan path?

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And don’t forget to serve a healthy side of humor with that vegan dish:

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Well: Your Twitter Tips for Going Vegan

In this week’s Well column, “How to Go Vegan,”, we asked you to send in your favorite tips and tricks for adopting a solely plant-based diet on Twitter. We received a range of responses, from quirky ingredient combinations that replicate a nonvegan dish to simple mantras to get you in a vegan frame of mind. Here are some of our favorites. To see the entire list of submissions, visit the hashtag, #vegantips.

Let’s start with some simple recipes that may satisfy your vegan craving:

---

Add some of your favorite ingredients:

---

Don’t forget to love your legumes:

---

And what about some tips to keep you on the vegan path?

---

And don’t forget to serve a healthy side of humor with that vegan dish:

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Bits Blog: Facebook's Other Big Disruption

Facebook just made a potentially game-changing announcement. It got less fanfare than Tuesday’s announcement that it is going into the social search business, but this other announcement may have bigger long-term implications for the technology industry.

Put simply, some of the world’s biggest computing systems just got a little cheaper, and a lot easier to configure. As a consequence, the companies that supply the hardware to these systems may have to scramble to remain as profitable. The reason is a Facebook-led open source project.

In 2011 Facebook began the Open Compute Project, an effort among technology companies to use open-source computer hardware. Tech companies similarly shared intellectual property with Linux software, which lowered costs and spurred innovation. Facebook’s project has attracted many significant participants, including Goldman Sachs, Arista Networks, Rackspace, Hewlett-Packard and Dell.

At a user summit on Wednesday Intel, another key member of the Open Compute Project, announced it would release to the group a silicon-based optical system that enables the data and computing elements in a rack of computer servers to communicate at 100 gigabits a second. That is significantly faster than conventional wire-based methods, and uses about half the power.

More important, it means that elements of memory and processing that now must be fixed closely together can be separated within a rack, and used as needed for different kinds of tasks. There is a lot of waste in data centers today simply because, when there is an upgrade in servers, lots of other associated data-processing hardware has to be changed, too.

There were other announcements, like a computer motherboard called Grouphug that allows different manufacturers’ chips to be interchanged without altering other parts of the machine. Before, they were custom made. Put together, such innovations potentially lower the cost and complexity of running big and small data centers to an extent that works for a lot of companies.

“Who wouldn’t want a cheaper, more efficient server?” said Frank Frankovsky, vice president of hardware design at Facebook, and the chairman of Open Compute. “The problem we’re solving is much larger than Facebook’s own challenges. There is a massive amount of data in the world that people expect to have processed quickly.”

To be sure, it’s in Facebook’s interest to attack expensive hardware. The company makes money from a service that requires hundreds of thousands of computer servers distributed in big centers around the world. Google and Amazon.com, which are not members of the project, maintain proprietary systems which they apparently felt gave them a competitive edge.

For Facebook, the difference seems to be more in the software. To the extent hardware costs drop, that’s great for them. Mr. Frankovsky argued that, while “this puts challenges on the incumbents” in hardware, “it also helps them. They have a finite number of engineering resources, and this way they hear from a community about whether there is an interest for a product.” Intel may hope to benefit from its open-source release, since it could see an overall rise in demand for its chips with the move toward cheaper computing.

The real test is whether Facebook can increase the number of potential buyers for Open Compute equipment. “The question is, can they extend this beyond a few Web businesses like Facebook and Rackspace, or a few financial exercises at Goldman, and bring this to industries like oil or aerospace?” said Matt Eastwood, an analyst with IDC, a technology research firm. “That will take it from 20 or 30 companies to hundreds of companies.”

The issue isn’t so much a technical one, he argues, as it is one of getting corporate information technology professionals interested in radical design changes. Mr. Frankovsky is aware of the problem. Recently he and his colleagues led a seminar in Texas for BP, Shell and other oil giants on how they could use Open Compute hardware in their data centers.

This will not change things dramatically this year, and possibly even next, but over the long haul it could remake a lot of businesses. Linux, remember, was around for several years as a minor player, but eventually undid Sun Microsystems and others.

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IHT Rendezvous: How Far Will Europeans Support France's Counter-Jihad?

LONDON — It did not require a crystal ball to foresee, as Rendezvous did in our 2013 preview, that Mali would be in the news and that France might be the first to intervene there to counter a perceived terrorist threat to Europe.

Less predictable, however, is the extent to which the French can rely on the support of their European allies now that they have decided to go it alone.

The crisis had been building for the best part of a year since mutinous soldiers staged a coup in Bamako, the Malian capital, last March, and separatist Tuareg tribesmen took the opportunity to seize the north of the country. The tribesmen were quickly pushed aside by radical Islamists, including those behind this week’s hostage-taking in neighboring Algeria.

They were poised to extend their rule this month beyond the two-thirds of the country they already control when the French stepped in at the request of the Bamako government.

As early as last April, Alain Juppé, the then French foreign minister, was warning of the “extremely grave threat” posed by the Qaeda-linked insurgents and their aim of establishing a jihadist regime in northern Mali.

In early September, António Guterres, the United Nations High Commissioner for Refugees, was telling readers of the IHT:

If unchecked, the Mali crisis threatens to create an arc of instability extending west into Mauritania and east through Niger, Chad and Sudan to the Horn of Africa and the Gulf of Aden, characterized by extended spaces where state authority is weak and pockets of territorial control are exercised by transnational criminals.

So, did the international community, and Europe in particular, react too slowly to the escalating crisis? Or has France acted precipitously in opting for a military solution to contain the threat?

David Rohde writes elsewhere on Rendezvous that regional experts believe the French had to act.

But, as French troops launched ground operations this week in support of local forces, how far are France’s European allies prepared to be sucked into a potential Malian quagmire?

Germany, Denmark and Britain are among European Union partners that have offered logistical support in Mali.

However, as David Cameron, the British prime minister, assured Parliament when he announced the offer of transport aircraft to assist the French mission, there was no question of putting British boots on the ground.

The government of Chancellor Angela Merkel is being even more cautious, limiting its assistance to supplying planes to airlift African troops from the regional ECOWAS alliance.

“Under no circumstances does Germany want to become involved in a messy conflict with no clear end in sight,” Germany’s Der Spiegel commented, “particularly not in an election year.”

Germany held out against intervention in Libya in 2011, eventually spearheaded by France and Britain, siding with Russia in a crucial United Nations vote in defiance of its European allies.

Libya underlined the lack of a common foreign policy, let alone a common defense policy, among the 27 European partners who now face a new crisis in North Africa.

Facing recriminations from some in France that it was only its soldiers who were doing the fighting, European foreign ministers agreed on Thursday to speed up the dispatch of more than 200 military personnel to train Malian government forces to confront the Islamists.

But that was an option that had been on the table since October, when European Union officials said the alliance was considering such a move.

The E.U. also stressed that the trainers, due to be deployed by mid-February at the latest, would not be involved in combat operations.

Commenting on the outcome of Thursday’s meeting, Christophe Giltay of Belgium’s RTL broadcaster, said, “More and more French people are asking themselves if the Europeans have really understood the gravity of the situation.”

Alexandra de Hoop Scheffer and Martin Michelot of the Washington-based German Marshall Fund of the United States wrote this week that “the glacial pace at which decisions are taken at the national level to support France’s efforts in Mali only underscores the need for European leaders to be willing to discuss common security issues.”

Catherine Ashton, the European Union foreign policy chief, said on Thursday some of France’s partners were “willing to help and support France in every way and they did not rule in or rule out any aspect of that, including military support.”

But, according to the German Marshall Fund experts: “The French military is nevertheless facing the hard reality of acting on its own, with very little support from other European allies.”

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Lawmakers Seek Data on Energy Drinks

Three Democratic lawmakers on Thursday sent letters to 14 marketers of high-caffeinated energy drinks requesting data about the products’ ingredients and any company studies showing their risks and benefits to children and young people.

In recent months, the Food and Drug Administration has begun examining the safety of energy drinks following reports of several deaths and numerous injuries potentially associated with the products. The number of annual hospital emergency visits involving the drinks doubled from 2007 to 2011, according to a federal report released last week.

In addition, claims by drink producers that their proprietary “energy” formulations provide consumers with a physical and mental edge are coming under scrutiny. There is little scientific evidence, researchers say, that the drinks provide anything more than a high dose of caffeine similar to that found in a cup of strong coffee.

The letters were sent by Senators Richard J. Durbin of Illinois and Richard Blumenthal of Connecticut and Representative Edward J. Markey of Massachusetts to companies including Monster Beverage, Rockstar, Red Bull and Living Essentials, the distributor of 5-Hour Energy, a small, concentrated energy “shot” drink. Letters were also sent to PepsiCo, which sells Amp; Coca-Cola, which sells NOS; and Dr Pepper Snapple, which sells Venom Energy.

Among other questions in the letter, the lawmakers asked the companies to specify the total amount of caffeine in the energy beverages. Products like 5-Hour Energy that are marketed as supplements do not list the amount of caffeine used and producers use caffeine from a variety of sources such as synthetic caffeine, the guarana plant and tea extracts.

They also asked why the companies chose to market their energy product as either a beverage or a dietary supplement. The two regulatory categories have separate rules about ingredient disclosures and reporting of potential health risks.

The lawmakers also asked the companies to provide any studies that they have run or underwritten that examine the effect of energy drink use in children or young adults.

The few studies cited by energy drink companies to back their marketing claims have taken place among adults and have compared the effect of an energy drink to that of a placebo like flavored water.

Other public officials are looking into marketing claims of energy drink makers, including the attorney general of New York State and the city attorney for San Francisco.

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Ask Well: Help for the Deskbound

One of the problems with office work is that many of us are using chairs that don’t fit our bodies very well or give adequate support to the back, said Jack Dennerlein, a professor at Northeastern’s Bouvé College of Health Sciences in Boston who specializes in ergonomics and safety. If you are experiencing back pain, you may be able to adjust your chair to increase its lumbar support. A good office chair will have an adjustable seat pan that you can slide back and forth as well as adjustable back and height features. First, sit in the chair so the lumbar region of your back, your lower back, is resting on the back support. At the same time, your feet should be resting comfortably on the ground and the back of your knees should be about three-finger widths from the edge of the chair, said Dr. Dennerlein.

Some high-end chair brands have adjustable seat pans, including the Steelcase Leap chair, which retails for between $800 and $900 and offers an adjustable seat and plenty of lumbar support.

The Steelcase Criterion chair sells anywhere from $350 to $850 online, depending on the model, and boasts seven different adjustments “to offer support through the full range of dynamic seating postures.”

The HumanScale Freedom chair is the winner of several design awards and also has an adjustable seat pan as well as “weight-sensitive recline, synchronously adjustable armrests, and dynamically positioned headrest.” ($400 to $1,400)

The Herman Miller Aeron chair is also popular because it comes in small, medium and large sizes and claims a PostureFit design that “supports the way your pelvis tilts naturally forward, so that your spine stays aligned and you avoid back pain.” ($680 to $850)

If all that sounds really wonderful and really too expensive, there may be a simpler solution to ease your back pain at work. Invest $15 to $30 in a lumbar chair pillow to make sure your back is getting the support it needs even when you are not sitting in a $900 chair.

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Ask Well: Help for the Deskbound

One of the problems with office work is that many of us are using chairs that don’t fit our bodies very well or give adequate support to the back, said Jack Dennerlein, a professor at Northeastern’s Bouvé College of Health Sciences in Boston who specializes in ergonomics and safety. If you are experiencing back pain, you may be able to adjust your chair to increase its lumbar support. A good office chair will have an adjustable seat pan that you can slide back and forth as well as adjustable back and height features. First, sit in the chair so the lumbar region of your back, your lower back, is resting on the back support. At the same time, your feet should be resting comfortably on the ground and the back of your knees should be about three-finger widths from the edge of the chair, said Dr. Dennerlein.

Some high-end chair brands have adjustable seat pans, including the Steelcase Leap chair, which retails for between $800 and $900 and offers an adjustable seat and plenty of lumbar support.

The Steelcase Criterion chair sells anywhere from $350 to $850 online, depending on the model, and boasts seven different adjustments “to offer support through the full range of dynamic seating postures.”

The HumanScale Freedom chair is the winner of several design awards and also has an adjustable seat pan as well as “weight-sensitive recline, synchronously adjustable armrests, and dynamically positioned headrest.” ($400 to $1,400)

The Herman Miller Aeron chair is also popular because it comes in small, medium and large sizes and claims a PostureFit design that “supports the way your pelvis tilts naturally forward, so that your spine stays aligned and you avoid back pain.” ($680 to $850)

If all that sounds really wonderful and really too expensive, there may be a simpler solution to ease your back pain at work. Invest $15 to $30 in a lumbar chair pillow to make sure your back is getting the support it needs even when you are not sitting in a $900 chair.

Read More..

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Cameron to Outline a Recast European Role for Britain

Weighted down by centuries of entrenched wariness in this island nation toward the Continent — and the knowledge that a gallery of his predecessors as Conservative prime ministers saw their tenures blighted by divisions within the party over the issue — Mr. Cameron is heading for Amsterdam on Friday to set out his vision of a sharply whittled-down role for Britain in the affairs of 21st-century Europe.

The speech in the Netherlands, carefully chosen as a country with a strong historical friendship with Britain, is a watershed moment for Mr. Cameron, and for Britain. It could be a deeply jarring occasion, as well, for other European nations, which have grown increasingly impatient, angry even, with Britain’s policy during the crisis in the euro zone. Some European officials have described as blackmail its use of the crisis — one that Britain, with the pound, has largely escaped — to demand a new, “pick-and-mix” status for itself within the 27-nation European Union.

After months of delay, Mr. Cameron is expected to brush aside the warnings of the Obama administration and European leaders and call for a referendum on whether Britain should remain squarely in Europe or negotiate a more arm’s-length relationship, most likely before the next Parliament’s mandate expires in 2018. In a clamorous House of Commons on Wednesday, the prime minister set out his thinking.

“Millions of people in this country, myself included, want Britain to stay in the European Union,” he said. “But they believe that there are chances to negotiate a better relationship. Throughout Europe, countries are looking at forthcoming treaty change, and asking, ‘What can I do to maximize my national interest?’ That is what the Germans will do. That is what the Spanish will do. That is what the British should do.”

For months, Mr. Cameron has been holding off on a promise to explain just what he wants from Europe. As a reformist Conservative pressing ahead with, among other things, a plan to legalize gay marriage, he has scant common ground with the “little Englanders” in his party, the core of about 100 members who make up a third of its representation in Parliament.

But Mr. Cameron can see votes, too, in the strong anti-Europe currents that run wherever people in Britain gather.

In pubs and bars, on radio and in Parliament itself, talk of the European Union tends to center on the bloc’s real — and, in some cases, apocryphal — abuses: its highhanded, bloated bureaucracy, with nearly 1,000 featherbedded officials earning more than Mr. Cameron’s $230,000 salary as prime minister; its endless proliferation of rules on everything from the length of dog leashes to the shape of carrots; the recent claim by a former high-ranking Cameron aide that government ministers spend 40 percent of their time dealing with the mass of pettifogging European “directives,” many of them widely ignored elsewhere in Europe.

Not only has Mr. Cameron been hemmed in by deep divisions over Europe within the Conservative Party — an issue that helped unseat Edward Heath, Margaret Thatcher and John Major as prime ministers — but he has also been wary of stirring a fresh wave of anger among other European leaders, particularly Chancellor Angela Merkel of Germany, a center-right politician and onetime ally in European councils.

Her aides have described her as frustrated with Mr. Cameron’s maneuvering and, as she is said to see it, his bid to take advantage of other European states as they struggle to save the euro and keep the most debt-laden nations, like Greece, Portugal and Spain, from dropping out of the European Union.

Concern about the reactions in Berlin and Paris prompted a last-minute rescheduling of the Amsterdam speech. Germany and France had protested that the original date, next Monday, might overshadow long-planned celebrations that day of the 50th anniversary of the treaty between them, itself a landmark in the building of postwar Europe, that sealed their reconciliation after the wounds of World War II.

Along with this, commentators say, Mr. Cameron has been recalculating the ways in which the European issue can be managed to bolster the Conservatives’ sagging prospects in a general election expected in 2015, in which polls show them lagging as much as 13 percentage points behind the opposition Labour Party. He has also been contending with heavy lobbying by American officials, including President Obama.

The Americans, diplomats say, have told Mr. Cameron squarely in private what made headlines here last week when a senior State Department official, Philip Gordon, who is assistant secretary for European affairs, spoke on the issue with British reporters. Mr. Gordon said a continued “strong British voice” in an “outward-looking” European Union was in America’s interests, and warned specifically against the referendum on Europe that is an important component in Mr. Cameron’s plans. “Referendums,” Mr. Gordon said, “have often turned countries inward.”

For all his delaying, his aides say, Mr. Cameron is ready now to outline a strategy for renegotiating Britain’s status in the European Union in a way that would keep Britain free from the centralizing forces at work. Other major European states, France and Germany in particular, see a new federal Europe with enhanced powers of fiscal oversight as essential to the long-term survival of the tottering euro.

Alan Cowell contributed reporting from Paris, and Stephen Castle from London.

This article has been revised to reflect the following correction:

Correction: January 17, 2013

An earlier version of this article misstated the year that a referendum approving Britain’s entry into the European Economic Community, the precursor to the European Union, was held. It was 1975, not 1974.

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Conversation: A Founder of the Soap Maker Method Discusses Its Sale

For Eric Ryan and Adam Lowry, the quest began in 2001 in what they call a “dirty little flat” in San Francisco, where the two childhood buddies from Detroit first plotted to disrupt the all-but-impenetrable cleaning products industry long dominated by giants like SC Johnson and Procter & Gamble.

They started by mixing soap formulas in beer pitchers labeled “Do Not Drink” and wound up creating Method, an irreverent, design-driven, environmentally minded company that outsourced manufacturing. The company grew to $34 million in revenue and 39 employees in 2005, and more than $100 million and 100 employees in 2012. Those numbers remain modest compared to those of Big Soap, but a walk down the cleaning aisle in almost any supermarket reveals not just Method’s reach (Ginger Yuzu dish soap, Pink Grapefruit hand wash) but its impact on competitors (Clorox Green Works).

“We showed up at the party with a very different proposition,” Mr. Ryan said. “We’re superproud that we’ve had an influence.”

That influence will continue, Mr. Ryan and Mr. Lowry suggest, even though Method was acquired for an undisclosed price in September by the Belgian company Ecover, creating what they claim is now the largest green cleaning company in the world, with revenue “north of $200 million.”

In a conversation that has been edited and condensed, we recently asked Mr. Ryan why he and Mr. Lowry chose to sell, how they identified the right suitor, and what will happen to the Method brand.

Q. Was selling the company always a primary goal?

A. When we started the company, we knew we had two choices. One was to grow organically, which a lot of businesses do, and you control the business and grow slowly and steadily. We fundamentally believed that we would not have success in this competitive space unless we went after it fast and aggressively. So we had to take outside capital. And when we took that outside capital — at some point, you have to give it back with a return.

Q. You make soap, you sell it, you make more soap, you sell more of it. Why couldn’t you grow without being acquired?

A. Two primary reasons. One is just economies of scale. In the early years, we lost money on every product we sold. We were competing against companies that not only have a 100-year head start but have just built incredible efficiencies. They own their own plants. When you walk in a grocery store and that bottle of dish soap sells for $1.99, we could not make it for $1.99 in the beginning. We needed capital to accelerate growth, to get our volume to a place where the business would be profitable. Two is that the cost of doing business in the mass channel is really expensive. When you sell in a grocery store, you have to pay an upfront fee called slotting charges. And that takes a fair amount of capital. So growing organically is possible, but it’s really, really tough.

Q. You’ve built a brand that seems to resonate with consumers. Are you concerned about their reaction to the sale?

A. It was something that was heavy in our minds for a lot of years. The typical script for a socially driven company like ours is you get acquired by a major strategic. So look at Honest Tea, acquired by Coke. Kashi by Kellogg. Burt’s Bees by Clorox. Even Mrs. Meyer’s, in our space, by SC Johnson. I always justified it by saying, “Well, if that happens, it’ll give us the chance to work from a bigger, global stage, and we’ll try to change those companies from the inside out.” And once we did this deal, I was just so thankful we never had to go down that path. We recognized we had a partner at the table with identical mission statements, identical values and a real long-term commitment. It was just an opportunity too good to pass up.

Q. Did you say no to other offers because you didn’t see that cultural fit?

A. We can’t name names, but we did have, over the years, conversations with those usual suspects. And the movie looked pretty similar — full integration, we go from being a company to being an operating unit within a larger organization. The culture, the team, “the Method Method” that we spent the last 10 years building would have been nonexistent within 12 months.

Q. Will the Method brand continue to exist?

A. Very much so. We’ll be building our own plant in North America. We’re turning on TV advertising for the first time in our history. We’re expanding more aggressively in Europe and Asia than we would have done otherwise. We’re creating a company with a long-term focus on the future. When you’re private equity-backed, it’s a much more short-term focus in how you invest and build the organization. The big thing that’s changing now, we’re a house of brands, which is Method and Ecover. And we have to set up a business where they coexist in a way that they don’t cannibalize each other and reach a broader audience collectively.

Q. Obviously, you’re in the honeymoon phase. How do you protect against something going wrong?

A. At the end of the day, it’s like a marriage — there is a leap of faith. And the way that you can protect yourself the most is just really trusting your instincts of who you’re jumping in bed with. It’s just like a job interview or any other relationship. If you’re getting to a point where you’re having to lean on a lot of legalities or other ways to try to protect yourself, it’s probably not the right relationship. It just comes back again to, are these people you trust, who share the same vision?

Q. While this was developing, how open were you with your employees?

A. You just can’t talk openly. It can do damage to the deal, but also, it’s a roller coaster, and you don’t want everyone riding the roller coaster with you. It’s incredibly distracting. There was a very small group that was in the know, and those were only the ones that were needed for due diligence. People knew we were looking and we were upfront about that, but they didn’t know to what extent, because we didn’t know to what extent. So when we did the announcement, there was initial shock, but over all it went well. And then for the next week, it was really challenging because what happened — what we were completely blindsided by — was how many people in their careers had been through a bad M.& A. transaction. There were a lot of bad movies that started being replayed. What I told everybody was, “Look, I’ve never been through a bad merger in my life, and I’m not about to start now.”

Q. Things have been tough in Europe. Any concerns about partnering with a European company and expanding there?

A. I like the idea of investing when something is at its lowest. [Laughs.] No, we have not had too many concerns about it. This business is firing on all cylinders. I was definitely, in the back of my head, concerned that things would get derailed by the European crisis, but who we’re dealing with is very long-term focused and they’re also very globally minded. Europe is a big part of their business, but they’re also expanding aggressively in Asia — we are as well — and North America.

Q. And everyone needs soap.

A. And everybody needs soap. It’s a dirty world out there.

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The New Old Age: In Flu Season,Use a Mask. But Which One?

Face masks help prevent people from getting the flu. But how much protection do they provide?

You might think the answer to this question would be well established. It’s not.

In fact, there is considerable uncertainty over how well face masks guard against influenza when people use them outside of hospitals and other health care settings. This has been a topic of discussion and debate in infectious disease circles since the 2009 H1N1 flu pandemic, also known as swine flu.

As the government noted in a document that provides guidance on the issue, “Very little information is available about the effectiveness of facemasks and respirators in controlling the spread of pandemic influenza in community settings.” This is also true of seasonal influenza — the kind that strikes every winter and that we are experiencing now, experts said.

Let’s jump to the bottom line for older people and caregivers before getting into the details. If someone is ill with the flu, coughing and sneezing and living with others, say an older spouse who is a bit frail, the United States Centers for Disease Control and Prevention recommends the use of a face mask “if available and tolerable” or a tissue to cover the nose and mouth.

If you are healthy and serving as a caregiver for someone who has the flu — say, an older person who is ill and at home — the C.D.C. recommends using a face mask or a respirator. (I’ll explain the difference between those items in just a bit.) But if you are a household member who is not in close contact with the sick person, keep at a distance and there is no need to use a face mask or respirator, the C.D.C. advises.

The recommendations are included in another document related to pandemic influenza — a flu caused by a new virus that circulates widely and ends up going global because people lack immunity. That is not a threat this year, but the H3N2 virus that is circulating widely is hitting many older adults especially hard. So the precautions are a good idea, even outside a pandemic situation, said Dr. Ed Septimus, a spokesman for the Infectious Diseases Society of America.

The key idea here is exposure, Dr. Septimus said. If you are a caregiver and intimately exposed to someone who is coughing, sneezing and has the flu, wearing a mask probably makes sense — as it does if you are the person with the flu doing the coughing and sneezing and a caregiver is nearby.

But the scientific evidence about how influenza is transmitted is not as strong as experts would like, said Dr. Carolyn Bridges, associate director of adult immunization at the C.D.C. It is generally accepted that the flu virus is transmitted through direct contact — when someone who is ill touches his or her nose and then a glass that he or she hands to someone else, for instance — and through large droplets that go flying through the air when a person coughs or sneezes. What is not known is the extent to which tiny aerosol particles are implicated in transmission.

Evidence suggests that these tiny particles may play a more important part than previously suspected. For example, a November 2010 study in the journal PLoS One found that 81 percent of flu patients sent viral material through air expelled by coughs, and 65 percent of the virus consisted of small particles that can be inhaled and lodge deeper in the lungs than large droplets.

That is a relevant finding when it comes to masks, which cover much of the face below the eyes but not tightly, letting air in through gaps around the nose and mouth. As the C.D.C.’s advisory noted, “Facemasks help stop droplets from being spread by the person wearing them. They also keep splashes or sprays from reaching the mouth and nose of the person wearing them. They are not designed to protect against breathing in the very small particle aerosols that may contain viruses.”

In other words, you will get some protection, but it is not clear how much. In most circumstances, “if you’re caring for a family member with influenza, I think a surgical mask is perfectly adequate,” said Dr. Carol McLay, an infection control consultant based in Lexington, Ky.

By contrast, respirators fit tightly over someone’s face and are made of materials that filter out small particles that carry the influenza virus. They are recommended for health care workers who are in intimate contact with patients and who have to perform activities like suctioning their lungs. So-called N95 respirators block at least 95 percent of small particles in tests, if properly fitted.

Training in how to use respirators is mandated in hospitals, but no such requirement applies outside, and consumers frequently put them on improperly. One study of respirator use in New Orleans after Hurricane Katrina, when mold was a problem, found that only 24 percent of users put them on the right way. Also, it can be hard to breathe when respirators are used, and this can affect people’s willingness to use them as recommended.

Unfortunately, research about the relative effectiveness of masks and respirators is not robust, and there is no guidance backed by scientific evidence available for consumers, Dr. Bridges said. Nor is there any clear way of assessing the relative merits of various products being sold to the public, which differ in design and materials used.

“Honestly, some of the ones I’ve seen are almost like a paper towel with straps,” Dr. McLay said. Her advice: go with name-brand items used by your local hospital.

Meanwhile, it is worth repeating: The single most important thing that older people and caregivers can do to prevent the flu is to be vaccinated, Dr. Bridges said. “It’s the best tool we have,” she said, noting that preventing flu also involves vigilant hand washing, using tissues or arms to block sneezing, and staying home when ill so people do not transmit the virus. And it is by no means too late to get a shot, whose cost Medicare will cover for older adults.

Read More..

The New Old Age: In Flu Season,Use a Mask. But Which One?

Face masks help prevent people from getting the flu. But how much protection do they provide?

You might think the answer to this question would be well established. It’s not.

In fact, there is considerable uncertainty over how well face masks guard against influenza when people use them outside of hospitals and other health care settings. This has been a topic of discussion and debate in infectious disease circles since the 2009 H1N1 flu pandemic, also known as swine flu.

As the government noted in a document that provides guidance on the issue, “Very little information is available about the effectiveness of facemasks and respirators in controlling the spread of pandemic influenza in community settings.” This is also true of seasonal influenza — the kind that strikes every winter and that we are experiencing now, experts said.

Let’s jump to the bottom line for older people and caregivers before getting into the details. If someone is ill with the flu, coughing and sneezing and living with others, say an older spouse who is a bit frail, the United States Centers for Disease Control and Prevention recommends the use of a face mask “if available and tolerable” or a tissue to cover the nose and mouth.

If you are healthy and serving as a caregiver for someone who has the flu — say, an older person who is ill and at home — the C.D.C. recommends using a face mask or a respirator. (I’ll explain the difference between those items in just a bit.) But if you are a household member who is not in close contact with the sick person, keep at a distance and there is no need to use a face mask or respirator, the C.D.C. advises.

The recommendations are included in another document related to pandemic influenza — a flu caused by a new virus that circulates widely and ends up going global because people lack immunity. That is not a threat this year, but the H3N2 virus that is circulating widely is hitting many older adults especially hard. So the precautions are a good idea, even outside a pandemic situation, said Dr. Ed Septimus, a spokesman for the Infectious Diseases Society of America.

The key idea here is exposure, Dr. Septimus said. If you are a caregiver and intimately exposed to someone who is coughing, sneezing and has the flu, wearing a mask probably makes sense — as it does if you are the person with the flu doing the coughing and sneezing and a caregiver is nearby.

But the scientific evidence about how influenza is transmitted is not as strong as experts would like, said Dr. Carolyn Bridges, associate director of adult immunization at the C.D.C. It is generally accepted that the flu virus is transmitted through direct contact — when someone who is ill touches his or her nose and then a glass that he or she hands to someone else, for instance — and through large droplets that go flying through the air when a person coughs or sneezes. What is not known is the extent to which tiny aerosol particles are implicated in transmission.

Evidence suggests that these tiny particles may play a more important part than previously suspected. For example, a November 2010 study in the journal PLoS One found that 81 percent of flu patients sent viral material through air expelled by coughs, and 65 percent of the virus consisted of small particles that can be inhaled and lodge deeper in the lungs than large droplets.

That is a relevant finding when it comes to masks, which cover much of the face below the eyes but not tightly, letting air in through gaps around the nose and mouth. As the C.D.C.’s advisory noted, “Facemasks help stop droplets from being spread by the person wearing them. They also keep splashes or sprays from reaching the mouth and nose of the person wearing them. They are not designed to protect against breathing in the very small particle aerosols that may contain viruses.”

In other words, you will get some protection, but it is not clear how much. In most circumstances, “if you’re caring for a family member with influenza, I think a surgical mask is perfectly adequate,” said Dr. Carol McLay, an infection control consultant based in Lexington, Ky.

By contrast, respirators fit tightly over someone’s face and are made of materials that filter out small particles that carry the influenza virus. They are recommended for health care workers who are in intimate contact with patients and who have to perform activities like suctioning their lungs. So-called N95 respirators block at least 95 percent of small particles in tests, if properly fitted.

Training in how to use respirators is mandated in hospitals, but no such requirement applies outside, and consumers frequently put them on improperly. One study of respirator use in New Orleans after Hurricane Katrina, when mold was a problem, found that only 24 percent of users put them on the right way. Also, it can be hard to breathe when respirators are used, and this can affect people’s willingness to use them as recommended.

Unfortunately, research about the relative effectiveness of masks and respirators is not robust, and there is no guidance backed by scientific evidence available for consumers, Dr. Bridges said. Nor is there any clear way of assessing the relative merits of various products being sold to the public, which differ in design and materials used.

“Honestly, some of the ones I’ve seen are almost like a paper towel with straps,” Dr. McLay said. Her advice: go with name-brand items used by your local hospital.

Meanwhile, it is worth repeating: The single most important thing that older people and caregivers can do to prevent the flu is to be vaccinated, Dr. Bridges said. “It’s the best tool we have,” she said, noting that preventing flu also involves vigilant hand washing, using tissues or arms to block sneezing, and staying home when ill so people do not transmit the virus. And it is by no means too late to get a shot, whose cost Medicare will cover for older adults.

Read More..

Pushing France Onto the Digital Stage

PARIS — When the most prominent new face in France’s effort to oversee the new economy speaks, her pronouncements may be followed almost as closely in Silicon Valley and Seoul as in Paris.

Fleur Pellerin, a deputy finance minister, is the point woman in President François Hollande’s campaign to stimulate innovation. But in trying to put a French imprint on the digital economy, she has been drawn into a growing number of disputes with U.S. technology companies like Google, Twitter and Amazon.

In South Korea, it is Ms. Pellerin’s personal story that fascinates. Abandoned on the streets of Seoul as a newborn, she was taken in by a French family who raised her in the suburbs of Paris. While more than 150,000 South Korean children have been adopted by foreign parents since the Korean War, only one, Ms. Pellerin, has risen to the top ranks of the French government.

In one of the clearest signals yet from the French Finance Ministry that the government is intent on making the Internet conform to French law and custom, Ms. Pellerin last week waded into a dispute involving Google, whose advertising had been blocked by a French Internet service provider, Free.

The move was widely seen as an attempt by Free to force Google to pay for network access. As a preliminary step, Ms. Pellerin ordered Free to restore full service, but she made it clear that she thought the French company had a legitimate grievance.

The appointment of Ms. Pellerin last May, after Mr. Hollande’s election, prompted talk of a new orientation in French technology policy, where mistrust of foreign companies has sometimes been the guiding principle.

Ms. Pellerin, 39, is the first French government minister of Asian extraction. Although she has never visited the land of her birth, in French technology circles her rise fostered a perhaps naïve hope: Might Ms. Pellerin transform France into a European version of South Korea, where ultrahigh-speed broadband is ubiquitous and electronics giants like Samsung and LG have become world-beaters?

“I would like to make France one of the top nations in terms of digital innovation,” Ms. Pellerin said during a recent interview in her office at the Finance Ministry, which juts out over the Seine in eastern Paris like a giant, modern version of a medieval river toll barrier. “If we don’t act in the next few years it will be too late.”

Yet anyone expecting a drastic break with French governing traditions might be disappointed by Ms. Pellerin. After her unusual arrival in France, her upbringing and rise through the system were largely indistinguishable from that of many native-born members of the French administration.

Raised by middle-class parents — her father, who has a doctorate in nuclear physics, is a small-business owner — Ms. Pellerin grew up in two Paris suburbs, gritty Montreuil and wealthier Versailles. A promising student from the start, she was educated at elite institutions, including Sciences Po and the École Nationale d’Administration, which serve as finishing schools for the country’s ruling class. Before joining Mr. Hollande’s government, she was a magistrate at the Cour des Comptes, a body that audits the public finances, and worked in public relations.

Ms. Pellerin’s husband, Laurent Olléon, is also in government service, as an official in the office of Marylise Lebranchu, the minister for the reform of the state and decentralization. Ms. Pellerin has an 8-year-old daughter from a previous marriage.

In her new role in government, Ms. Pellerin has become the central figure in Mr. Hollande’s drive to establish “digital sovereignty” — the principle that French rules should apply to international Internet companies, which sometimes hover elusively beyond the reach of the national authorities. This has prompted clashes with a growing number of American technology companies.

Overseeing investigations of these companies on taxation and other matters, even while wooing them to invest in France, is a balancing act, Ms. Pellerin acknowledged.

“It’s not a crusade against Americans,” she said. “We are just trying to put everyone on a level playing field.”

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French and Malian Ground Troops Confront Islamists in Seized Town

Eric Feferberg/Agence France-Presse — Getty Images

French soldiers rode in armored vehicles as they left Bamako and started their deployment to the north of Mali on Wednesday.

BAMAKO, Mali — French ground troops battled armed Islamist occupiers of a desert village in central Mali on Wednesday, a Malian army colonel said, in the first direct combat between them since France launched its military operation here last week to help wrest this nation back from an Islamic jihadist expansion.

The Malian colonel, who also said his army’s ground troops had joined the French forces, reported that they had ringed the village of Diabaly, which Islamist fighters had seized the day before, and were engaged in fighting to extricate them. “It’s a very specialized kind of war,” said the colonel, who spoke on condition of anonymity. “The town is surrounded.”

The ground fighting expanded the confrontation between the Islamists and the French forces, which had been largely limited to aerial assaults since President François Hollande of France ordered an intervention in Mali last Friday to thwart a push to the south by Islamist rebels controlling the north of the country.

The Diabaly battle followed a northward push by a French phalanx of armored vehicles from the capital of Bamako to confront the Islamist expansion. It came as news reports from the region said Islamist militants from northern Mali affiliated with Al Qaeda in the Islamic Maghreb had seized a foreign-run gas field near the Algeria-Libya border, hundreds of miles away, and had seized dozens of foreign hostages in retaliation for the French intervention in Mali and for Algeria’s cooperation in that effort.

The developments came soon after Defense Minister Jean-Yves Le Drian of France forecast a protracted campaign to turn back a southward thrust by the rebels from their redoubts in the northern Malian desert.

“We’re in a better position than last week, but the combat continues and it will be long, I imagine,” he said Wednesday on RTL radio. “Today the ground forces are in the process of deploying,” he said. “Now the French forces are reaching the north.”

Adm. Edouard Guillaud, the French chief of staff, told Europe 1 television that ground operations began overnight.

He accused jihadists of using civilians as human shields and said, “We refuse to put the population at risk. If there is doubt, we will not fire.”

In Paris, Mr. Hollande said Wednesday that he took the decision to intervene last Friday because it was necessary. If he had not done so, it would have been too late. “Mali would have been entirely conquered and the terrorists would today be in a position of strength."

On Tuesday, witnesses in Mali reported, the insurgents had regrouped after French airstrikes and embedded themselves among the population of Diabaly, hiding in the mud and brick houses in the battle zone and thwarting attacks by French warplanes to dislodge them.

“They are in the town, almost everywhere in the town,” said Bekaye Diarra, who owns a pharmacy in Diabaly, which remained under the control of insurgents. “They are installing themselves.”

Benco Ba, a parliamentary deputy there, said residents were fearful of the conflict that had descended on them. “The jihadists are going right into people’s families,” he said. “They have completely occupied the town. They are dispersed. It’s fear, ” he said, as it became

clear that airstrikes alone will probably not be enough to root out these battle-hardened insurgents, who know well the harsh grassland and desert terrain of Mali.

Containing the rebels’ southern advance toward Bamako is proving more challenging than anticipated, French military officials have acknowledged. And with the Malian Army in disarray and no outside African force yet assembled, displacing the rebels from the country altogether appears to be an elusive, long-term challenge.

The jihadists were “dug in” at Diabaly, Defense Minister Le Drian said Tuesday at a news conference. From that strategic town, they “threaten the south,” he said, adding: “We face a well-armed and determined adversary.”

Mr. Le Drian also acknowledged that the Malian Army had not managed to retake the town of Konna, whose seizure by the rebels a week ago provoked the French intervention. “We will continue the strikes to diminish their potential,” the minister said.

Adam Nossiter reported from Bamako, Mali, Alan Cowell from Paris and Eric Schmitt from Washington. Reporting was contributed by Steven Erlanger and Scott Sayare from Paris, Julia Werdigier from London, and Elisabeth Bumiller from Madrid.

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DealBook: Goldman Retreats From Plan to Award Bonuses Later in Britain

LONDON – Goldman Sachs decided on Tuesday that it would not delay the payment of bonuses to its staff in Britain, a move that would have helped investment bankers and other highly paid employees to benefit from a lower income tax rate.

The decision came as lawmakers criticized banks that were considering paying bonuses later than usual. The top tax rate in Britain is scheduled to drop to 45 percent, from 50 percent, on April 6.

Goldman Sachs’s compensation committee had considered delaying the bonus payments but decided at its meeting on Tuesday not to proceed, said a person with direct knowledge of the decision, who declined to be identified because the meeting was not public. Goldman Sachs is due to report fourth-quarter earnings on Wednesday and usually announces the size of the annual bonuses to its staff shortly afterward.

Even the consideration of such a move had threatened to turn into another public relations problem for the banking industry, whose top executives had pledged to try to rebuild their reputations tarnished by the financial crisis. Goldman Sachs was already drawing scrutiny in the United States after it distributed $65 million in stock to 10 senior executives in December instead of January, when the firm typically makes such awards. That move helped the executives avoid the higher tax rates that will now be imposed on income of $400,000 or more.

Mervyn King, the governor of the Bank of England, told a parliamentary committee on Tuesday morning that even though any delay in bonus payments was not against the law, it was “a bit depressing that people who earn so much seem to think that it’s even more exciting to adjust the timing of it.”

A Treasury minister in Britain, Sajid Javid, called Goldman Sachs this week to urge the firm not to delay the payments, a person briefed on the discussion said.

The British government announced last year that it would scrap the 50 percent top tax rate for income above £150,000, or $181,000, which was introduced by the last Labour government to help plug the budget deficit. The chancellor of the Exchequer, George Osborne, had called the tax “cripplingly uncompetitive” because it cost jobs and failed to raise any money.

A spokeswoman for Goldman Sachs declined to comment.

Mr. King said that investment banks were privileged because a lot of their compensation was made up of bonuses, which they can decide to pay whenever they want. But he also said that delaying bonuses to benefit from the upcoming tax cut “would be rather clumsy and lacking in care and attention to how other people might react.” “In the long run, financial institutions, like all large institutions, do depend on goodwill from the rest of society,” he added. “They can’t just exist on their own.”

Earlier, several Labour Party politicians had criticized the banking industry for considering a delay of bonus payments. John Mann, a member of the Labour Party, said such a step would be an “opportunistic money grab,” The Financial Times reported on Monday.

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This post has been revised to reflect the following correction:

Correction: January 15, 2013

The headline on an earlier version of this article referred mistakenly to the timing of the bonuses awarded by Goldman Sachs in Britain. As the article correctly noted, the investment bank decided to award bonuses before the tax rate is adjusted on April 6, not after.

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Well: For DTaP Vaccine, Thigh May Be Better Injection Site Than Arm

Children are less likely to develop bad reactions to the DTaP vaccine, a routine immunization shot that protects against diphtheria, tetanus and pertussis, or whooping cough, if they get it in their thigh instead of in their arm, a new study shows.

The research looked at more than a million children who were given injections of the vaccine. In many cases it causes some degree of redness or swelling around the injection site, which typically goes away after a day. But in rare instances a child can develop a more pronounced reaction, like severe pain or a swollen limb, that may require medical attention.

In the new study, which was published in the journal Pediatrics, researchers found that children between the ages of 1 and 3 who were given the DTaP vaccine in their thigh instead of in their upper arm were around half as likely to have a local reaction that warranted a visit to a doctor, nurse or emergency room. Previous studies of children who received the vaccine between the ages of 4 and 6 found that they, too, had a lower likelihood of developing a local reaction requiring medical attention if they got the shot in their thigh instead of in their arm.

Why the vaccine would be less harsh on the thigh than the arm is not known for certain. But one possibility is simply that in children at that age, the thigh muscle is much larger than the deltoid, the muscle in the upper arm where shots are typically administered. If any inflammation ensues, it has more room to diffuse in the thigh, said Dr. Lisa A. Jackson, the lead author of the study and a senior investigator at the Group Health Research Institute in Seattle.

“In little kids the upper arm is very tiny,” she said. “You’re injecting the same volume of vaccine in the upper arm as in the thigh, which is a larger area. I think it’s just that it’s a larger muscle mass.”

The benefits, however, may not extend to other immunizations. The study, for example, also looked at shots for influenza and hepatitis A, and in those cases there was no meaningful difference between vaccinating in the arm or thigh for either toddlers or children ages 3 to 6.

In many cases, doctors choose where to administer a shot according to their own preference. But in the case of DTaP, at least, it makes more sense in general to give the shot in the thigh, Dr. Jackson said.

“Unless there’s a compelling reason not to, I would say veer toward giving the DTaP vaccine in the leg,” she said. “There’s less chance of a concerning reaction if you give it in the thigh versus the arm. So that should be the normal practice.”

Dr. Jackson stressed, however, that the absolute risk of a child having a reaction severe enough to warrant medical attention is still quite small, regardless of whether the shot is given in the arm or leg. The study found that it occurred in less than 1 percent of vaccinated children over all.

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Well: For DTaP Vaccine, Thigh May Be Better Injection Site Than Arm

Children are less likely to develop bad reactions to the DTaP vaccine, a routine immunization shot that protects against diphtheria, tetanus and pertussis, or whooping cough, if they get it in their thigh instead of in their arm, a new study shows.

The research looked at more than a million children who were given injections of the vaccine. In many cases it causes some degree of redness or swelling around the injection site, which typically goes away after a day. But in rare instances a child can develop a more pronounced reaction, like severe pain or a swollen limb, that may require medical attention.

In the new study, which was published in the journal Pediatrics, researchers found that children between the ages of 1 and 3 who were given the DTaP vaccine in their thigh instead of in their upper arm were around half as likely to have a local reaction that warranted a visit to a doctor, nurse or emergency room. Previous studies of children who received the vaccine between the ages of 4 and 6 found that they, too, had a lower likelihood of developing a local reaction requiring medical attention if they got the shot in their thigh instead of in their arm.

Why the vaccine would be less harsh on the thigh than the arm is not known for certain. But one possibility is simply that in children at that age, the thigh muscle is much larger than the deltoid, the muscle in the upper arm where shots are typically administered. If any inflammation ensues, it has more room to diffuse in the thigh, said Dr. Lisa A. Jackson, the lead author of the study and a senior investigator at the Group Health Research Institute in Seattle.

“In little kids the upper arm is very tiny,” she said. “You’re injecting the same volume of vaccine in the upper arm as in the thigh, which is a larger area. I think it’s just that it’s a larger muscle mass.”

The benefits, however, may not extend to other immunizations. The study, for example, also looked at shots for influenza and hepatitis A, and in those cases there was no meaningful difference between vaccinating in the arm or thigh for either toddlers or children ages 3 to 6.

In many cases, doctors choose where to administer a shot according to their own preference. But in the case of DTaP, at least, it makes more sense in general to give the shot in the thigh, Dr. Jackson said.

“Unless there’s a compelling reason not to, I would say veer toward giving the DTaP vaccine in the leg,” she said. “There’s less chance of a concerning reaction if you give it in the thigh versus the arm. So that should be the normal practice.”

Dr. Jackson stressed, however, that the absolute risk of a child having a reaction severe enough to warrant medical attention is still quite small, regardless of whether the shot is given in the arm or leg. The study found that it occurred in less than 1 percent of vaccinated children over all.

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Media Decoder: Resignation Suggests Rift Between CNET and CBS

There are companies with divisions that spend billions of dollars on entertainment. There are also companies with divisions that review new gadgets and sometimes champion the spectacular ones — even those that challenge the status quo.

And when those divisions are owned by the same company, there is a chance that they will wind up in the kind of predicament that the CBS Corporation found itself in last week.

A senior writer for CNET, the technology news Web site owned by CBS, resigned on Monday after the site was barred from presenting an award to a company being sued by CBS. Greg Sandoval, a former reporter for The Washington Post and The Los Angeles Times who has spent the last seven years at CNET, said on Twitter that he no longer had confidence “that CBS is committed to editorial independence.”

Mr. Sandoval did not respond to an interview request. His resignation announcement came half an hour after another technology news site, The Verge, laid bare the details of the conflict.

The case started to unfold on Jan. 9, when CNET’s employees did something they do every year: cast votes for the Best of C.E.S. Awards, the official awards program of the Consumer Electronics Show. For the Best in Show award, the employees chose the Hopper, a digital video recorder sold by Dish Network that allows users to skip ads on prime-time network television shows. Dish had showed off the newest version of the Hopper at C.E.S., and CNET’s reviewers were impressed by it.

But CBS claims the Hopper is illegal. Along with several other network owners, it went to court last year over the ad-skipping feature; the litigation is pending.

The vote created a “legal conflict for CBS,” the CNET editor in chief, Lindsey Turrentine, said in an editorial on Monday afternoon that confirmed the substance of The Verge’s article. (The site suggested that “CNET’s reviews could be used by Dish in court to embarrass CBS or possibly refute the company’s evidence.”)

“All night and through to morning,” Ms. Turrentine wrote, “my managers up and down CNET fought for two things: to honor the original vote and — when it became clear that CBS corporate did not accept that answer — to issue a transparent statement regarding the original vote.”

But her managers were overruled. The case went all the way to the CBS chief executive, Leslie Moonves, who said that CNET should disqualify the Hopper and choose a new award winner.

CNET acquiesced. When it announced the winners on Jan. 10, CNET acknowledged that the Hopper was “removed from consideration due to active litigation involving our parent company,” causing an outcry by the Dish chief executive, Joe Clayton, who said Dish was “saddened that CNET’s staff is being denied its editorial independence because of CBS’s heavy-handed tactics.”

But CBS did not allow CNET to reveal that the Hopper had won Best in Show before being removed; when The Verge reported that on Monday, further cries of censorship sprang up on the Internet. Ms. Turrentine said she wished she could have overridden CBS’s decision. “For that I apologize to my staff and to CNET readers,” she said.

Mr. Moonves declined an interview request, but a statement from CBS called the case “isolated and unique” and noted that the Hopper “has been challenged as illegal” by it and other major media companies. The statement added, “In terms of covering actual news, CNET maintains 100 percent editorial independence, and always will.”

A version of this article appeared in print on 01/15/2013, on page B7 of the NewYork edition with the headline: CNET Clashes With Its Owner, and a Reporter Resigns.

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Deadly Explosions Hit Aleppo University

A series of deadly explosions struck the Aleppo University campus in Syria on Tuesday, antigovernment activists and Syrian state television reported, in what appeared to be a major expansion of the violent struggle for control of the largest city in the nearly two-year-old Syrian conflict. Each side blamed the other for the blasts.

Antigovernment activists also reported that violence convulsed some suburbs of Damascus, the capital, where members of the insurgent Free Syrian Army were engaged in combat with government forces in the Ain Tarma and Zamalka neighborhoods. The fighting erupted after a campaign of Syrian Air Force attacks over the past few days apparently aimed at expunging insurgents from strategic areas. The Syrian Observatory for Human Rights, an antigovernment group based in Britain with a network of contacts in Syria, said at least 15 people were killed and dozens wounded in the explosions at Aleppo University, which was in a government-controlled part of Aleppo and had been conducting classes despite the mayhem and deprivation that have ravaged other parts of the city.

Aleppo, in northern Syria, has essentially been under siege since July, with insurgents and government forces in a stalemate. The city, which was once the commercial epicenter of Syria, has been struck by numerous shellings, bombings and airstrikes, but the university area had been largely spared until Tuesday.

Antigovernment activists said the university dormitories, which had been housing both students and civilians displaced by fighting elsewhere, were hit by one missile fired by Syrian military forces. They said buildings housing the architecture and humanities departments were also hit by missiles fired by the military.

Syria’s state-run SANA news service did not specify the number of casualties but said the explosions came on the first day of exams. SANA attributed the death and destruction to at least two rockets fired by what it called terrorists, the government’s blanket description for the armed insurgency against President Bashar al-Assad.

Photographs and video uploaded on the Internet by antigovernment groups showed extensive destruction of dormitory buildings, the hulks of several burned vehicles and bodies on the ground.

The United Nations has estimated that more than 60,000 people have been killed in Syria since the uprising against Mr. Assad began in March 2011.

Mr. Assad appeared to further distance himself on Monday from any thought of relinquishing power via a BBC interview with his deputy foreign minister, Faisal Muqdad. Mr. Muqdad suggested that Mr. Assad would run for re-election next year when his term expires. “We are opening the way for democracy, or deeper democracy,” he said. “In a democracy you don’t tell somebody not to run.”

Groups opposed to Mr. Assad have said they will not even consider political dialogue to resolve the conflict unless Mr. Assad resigns or is removed from power first. The special peace envoy from the United Nations and the Arab League, Lakhdar Brahimi, has urged Mr. Assad to step down and said he cannot be part of any transitional government. The Syrian government has accused Mr. Brahimi of bias toward the insurgency.

With diplomacy still deadlocked, more than 50 member states in the United Nations submitted an unusual written appeal to the Security Council on Monday to at least request an investigation by the International Criminal Court into possible war crimes and atrocities committed in Syria, by both the loyalist and the insurgent sides.

But whatever chance of such a move appeared to be ended on Tuesday by Russia, the biggest foreign defender of the Syrian government, which has vetoed three Security Council proposals on Syrian intervention since the conflict began.

“We consider this initiative ill-timed and counterproductive if we are to achieve the current priority goal — an immediate end to bloodshed in Syria,” Russia’s Foreign Ministry said in a statement. “We are convinced that speculation about international criminal prosecution and the search for guilty parties will only serve to keep the opposing sides in hard-line positions and complicate the search for a path of political-diplomatic settlement of the Syrian conflict.”

Rick Gladstone reported from New York, and Hwaida Saad from Beirut, Lebanon. Ellen Barry contributed reporting from Moscow.

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DealBook: With U.P.S. Deal, European Antitrust Regulators Block Another Big Merger

European antitrust regulators proved again on Monday that they were more than willing to flex their considerable muscle.

U.P.S.‘s $6.9 billion bid for TNT Express is the latest merger blocked by the European Union, and certainly the most prominent since the proposed tie-up of NYSE Euronext and Deutsche Börse last year. In the case of U.P.S., European regulators argued that proposed asset sales, including airline operations, would not be enough to appease their concerns over the state of competitiveness in package delivery.

“We are extremely disappointed with the European Commission’s position,” the chief executive of U.P.S., D. Scott Davis, said in a statement. “We proposed significant and tangible remedies designed to address the European Commission’s concerns with the transaction.”

Other antitrust regulators have blocked mergers on antitrust grounds. For example, the Justice Department opposed AT&T‘s proposed $39 billion bid for T-Mobile USA.

But the European Commission, led by Joaquín Almunia, has displayed an aggressive approach that has rankled some deal makers.

Mr. Almunia has acknowledged those concerns, even as he has sought to rebut them. In a speech delivered in November, the commissioner argued that he was not trying to prevent European companies from growing. But he said he was trying to preserve a competitive market place.

“It is simply not true that the commission is putting the brakes on the legitimate efforts of Europe’s firms to scale up,” he said. “What we must avoid are attempts to shield Europe’s companies from competition, in particular during this harsh period for the economy. In this game, only a few of them will benefit, and the majority will lose.”

Among Mr. Almunia’s arguments was that the European Commission was less concerned about high levels of market share than what mergers might do to prices.

In the case of the NYSE Euronext merger, regulators demanded that the two exchange operators sell off significant parts of their businesses. Chief among the European Union’s concerns were the strong position that the two companies would have in the market for derivatives traded on exchanges, leading to a call for the sale of either NYSE Euronext’s Liffe platform or Deutsche Börse’s Eurex unit.

Both companies protested, arguing that the European Union’s view of the market was too limited and did not take into account the broader market for derivatives traded off exchanges. The market operators eventually decided to call off their deal, believing that there was little hope for reversing regulators’ opinion.

Other deals have passed review, but some have required significant changes. In approving Universal Music Group’s takeover of EMI Music last year, for example, European regulators required the sale of a third of EMI’s assets. The decision has led to the auction of music labels like Parlaphone, the home to groups like Coldplay and David Guetta.

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