F.D.A. May Tap Experts on Energy Drinks


The Food and Drug Administration said in a letter released on Tuesday that it was likely to seek advice from outside experts to help determine whether energy drinks posed particular risks to teenagers or people with underlying health problems.


The letter appears to signal a change in the agency’s approach to the drinks, which contain high levels of caffeine.


Previously, F.D.A. officials have said that they were investigating possible risks posed by popular products like 5-Hour Energy, Monster Energy and Red Bull. But an agency spokeswoman, Shelly Burgess, said the new letter was the first time that the F.D.A. had said it might turn to outside experts.


The F.D.A. letter, which was released Tuesday by Senator Richard J. Durbin of Illinois and Senator Richard Blumenthal of Connecticut, follows disclosures that the agency received reports of 18 deaths and over 150 injuries that mentioned the possible involvement of energy drinks.


The filing of such reports with the F.D.A. does not prove that a product was responsible for a death or an injury. Energy drink makers have said their products are safe and were not responsible for the health problems.


The officials said a review of the drinks might be “greatly enhanced by also engaging specialized expertise” from an outside group, like the Institute of Medicine, which is part of the National Academy of Sciences.


Industry analysts said the letter indicated that the F.D.A. did not plan any immediate actions on energy drinks, an interpretation that set off a rally on Tuesday in the stock of Monster Beverage, the producer of Monster Energy. Company shares closed at $51.97, up over 13 percent. Any regulatory outcome is likely to be “benign,” Judy Hong, an analyst at Goldman Sachs, said in a note to investors, according to Bloomberg News.


In Canada, however, the use of an outside panel led to limits on caffeine levels in energy drinks.


In their letter, F.D.A. officials indicated that an outside review would focus on the possible risks posed by high levels of caffeine, a stimulant, to certain groups. They reiterated that daily consumption of significant levels of caffeine, which is found in products like coffee and tea, is safe.


“Areas of particular focus would include such matters as the vulnerability of certain populations to stimulants and the incidence and consequence of excessive consumption” of energy drinks, especially by young people, F.D.A. officials wrote.


In Canada, an expert panel made several recommendations, including arguing that such beverages be labeled “stimulant drug-containing drinks.”


Health Canada, that country’s counterpart to the F.D.A., did not adopt many of the group’s recommendations, but it has put in place new rules limiting caffeine levels in cans of energy drinks to 180 milligrams.


Some larger-size cans of energy drinks sold in the United States, like the 24-ounce can of Monster Energy and the 20-ounce can of Red Bull, have caffeine levels above that limit.


An eight-ounce cup of coffee, depending on how it is made, can contain from 100 to 150 milligrams of caffeine.


In the new letter, F.D.A. officials also said that studies that had examined other ingredients, like taurine, that are often used in energy drinks had determined those substances were safe. The agency also said that a survey suggested that energy drinks constitute a small portion of the caffeine consumed in this country, even by teenagers.


Read More..

Bits Blog: Apple Fires a Manager Over Its Misfire on Maps

8:51 p.m. | Updated

Apple has fired a manager who oversaw its mobile mapping service, continuing to clean house after a bad stumble.

Eddy Cue, senior vice president for Internet software and services at Apple, fired the manager, Richard Williamson, according to two people briefed on the matter who did not want to be named to avoid Apple’s ire. The firing happened shortly before Thanksgiving, according to one of these people.

Trudy Muller, an Apple spokeswoman, declined to comment. Mr. Williamson did not respond to a message sent to him through the business networking site LinkedIn, which as of Tuesday evening still had a profile listing him as Apple’s senior director of iOS platform services.

Apple had been using Google’s mapping service in its mobile software, but in an update released in September it replaced Google’s maps with its own. The new service added some features, like turn-by-turn directions and sharper graphics, but it was widely criticized over incorrect addresses, misplaced landmarks and misleading driving directions.

In a rare move, Timothy D. Cook, Apple’s chief executive, publicly apologized for the deficiencies of the service and recommended that disappointed customers use mapping services from Apple’s rivals while the company worked out the kinks.

Some early problems with the maps have been fixed. When providing directions for travel from San Francisco to Sausalito, Calif., Apple’s maps used to say the trip required taking a ferry; now it shows a simple drive on the freeway. The Flatiron building in New York and the Washington Monument are no longer a block or two from their rightful homes. But some directions still lead drivers astray, and flaws in the 3-D imagery persist; for example, the London Eye still has no spokes.

The firing of Mr. Williamson, which was first reported by Bloomberg News, follows a management shake-up at Apple in late October, when Mr. Cook fired Scott Forstall, the former head of Apple’s mobile software development. Mr. Cook made the change after months of simmering tensions between Mr. Forstall and other executives, which were exacerbated by the map problems.

As part of that shake-up, Mr. Cook gave Mr. Cue oversight of Apple Maps, along with Siri, the company’s voice-activated assistant technology in the iPhone.

Apple prepared for years to shift to its own mapping system. It acquired three start-ups and formed a partnership with TomTom, a Dutch maker of navigation systems. Tony Costa, a Forrester analyst, said Apple’s move was a necessary one, because iPhone owners were the most active users of mobile maps.

“To leave those people in Google’s hands is just something Apple can’t do,” Mr. Costa said. “Their ability to control and evolve and innovate with maps was limited by their dependence on Google.”

While they wait for Apple’s maps to get better, some Apple customers have also been waiting for Google to release its own maps app for Apple devices. People working on the app say they are seeking to finish it by the end of the year.

Tyler Bell, a product director of Factual, a company that Apple has listed as one of its data providers for business listings, said mapping services had become extremely challenging to produce because smartphone owners demand more from maps than ever before.

Apple, or any company that provides maps, has to collect data from many different vendors and then stitch it together to overlay onto a map, he said. Often there are duplicate entries, or locations are labeled or placed differently depending on the vendor. Along with using computer algorithms to cobble together the data, human testers are needed to smooth things out.

“All these things need to be improved, and it’s a never-ending problem,” Mr. Bell said. He added that he felt Apple had the proper tools in place to quickly improve its database, like a system that allows users to report problems.

But Marc Prioleau, a managing director of Prioleau Advisors, which provides consulting services for mapping companies, said it would take Apple a long time to fix its maps fully because of the scale and complexity of the effort.

Google had a huge head start, he said, because it began doing maps for stationary computers, a less demanding task, and could gradually build on the data as smartphones and tablets emerged.

Read More..

Bombings Are Said to Kill Dozens Near Syria’s Capital


Francisco Leong/Agence France-Presse — Getty Images


Rebels celebrated on top of a downed Syrian jet in Daret Azzeh, 20 miles west of Aleppo, on Wednesday.







DUBAI, United Arab Emirates — Syrian state media said on Wednesday that 34 people and possibly many more had died in twin car bombings in a suburb populated by minorities only a few miles from the center of Damascus, the capital, as the civil war swirls from north to south claiming ever higher casualties. One estimate by the government’s opponents put the death toll at 47.




There were also reports from witnesses in Turkey and antigovernment activists in Syria that for the second successive day insurgents had shot down a government aircraft in the north of the country, offering further evidence that the rebels are seeking a major shift by challenging the government’s dominance of the skies. It was not immediately clear how the aircraft, apparently a plane, had been brought down.


Video posted on the Internet by rebels showed wreckage with fires still burning around it. The aircraft appeared to show a tail assembly clearly visible jutting out of the debris. Such videos are difficult to verify, particularly in light of the restrictions facing reporters in Syria. However, the episode on Wednesday seemed to be confirmed by other witnesses.


“We watched a Syrian plane being shot down as it was flying low to drop bombs,” said Ugur Cuneydioglu, who said he observed the incident from a Turkish border village in southern Hatay Province. “It slowly went down in flames before it hit the ground. It was quite a scene,” Mr. Cuneydioglu said.


Video posted by insurgents on the Internet showed a man in aviator coveralls being carried away. It was not clear if the man was alive but the video said he had been treated in a makeshift hospital. A voice off-camera says, “This is the pilot who was shelling residents’ houses.”


The aircraft was said to have been brought down while it was attacking the town of Daret Azzeh, 20 miles west of Aleppo and close to the Turkish border. The town was the scene of a mass killing last June, when the government and the rebels blamed each other for the deaths and mutilation of 25 people. The video posted online said the plane had been brought down by “the free men of Daret Azzeh soldiers of God brigade.”


On Tuesday, Syrian rebels said they shot down a military helicopter with a surface-to-air missile outside Aleppo and they uploaded video that appeared to confirm that rebels have put their growing stock of heat-seeking missiles to effective use.


In recent months, rebels have used mainly machine guns to shoot down several Syrian Air Force helicopters and fixed-wing attack jets. In Tuesday’s case, the thick smoke trailing the projectile, combined with the elevation of the aircraft, strongly suggested that the helicopter was hit by a missile.


Rebels hailed the event as the culmination of their long pursuit of effective antiaircraft weapons, though it was not clear if the downing on Tuesday was an isolated tactical success or heralded a new phase in the war that would present a meaningful challenge to the Syrian government’s air supremacy. In Damascus, the official SANA news agency said the explosions in Jaramana outside the city at around 7 a.m. were the work of “terrorists,” the word used by the authorities to denote rebel forces seeking the overthrow of President Bashar al-Assad. Photographs on the SANA Web site showed wreckage and flames in what looked like a narrow alleyway with cars covered in chunks of debris from damaged buildings. The agency said the bombings were in the main square of Jaramana, which news reports said is largely populated by members of the Christian and Druse minorities. Residents said the neighborhood was home to many families who have fled other parts of Syria because of the conflict and to some Palestinian families. The blasts caused “huge material damage to the residential buildings and shops,” SANA said.


The photographs on the Web site showed shattered windows at the Abou Samra coffee house and gurneys laden with injured people clogging what seemed to be a hospital corridor.


SANA said two bombings in other neighborhoods caused minor damage. Activists reported that there were four explosions and said they were all “huge.”


Footage broadcast on Syria’s private Addounia channel and state television showed damage scarring gray six-story apartment houses above tangles of wrecked cars as ambulances arrived to transport the wounded and rescuers spraying rubble with fire hoses. The camera panned over bloodstained sidewalks.


The blasts seemed initially at least to shift the focus of the fighting from the north, where insurgents have claimed string of tactical breakthroughs in recent days, to areas ringing Damascus.


In the north in recent days, the insurgents also claimed to have seized air bases and a hydroelectric dam, apparently seeking both to expand their communications lines and to counter the government’s supremacy in the air.


The death toll from Wednesday’s bombings was not immediately confirmed. An activist group, the British-based Syrian Observatory for Human Rights, initially said that 29 people had died but revised the figure later to 47, of whom 38 had been identified. Of the 120 injured, the rebel group said, 23 people were in serious condition, meaning that the tally could climb higher.


The explosions reflected the dramatic shift since Syria’s uprising began in March 2011 as a peaceful protest centered on the southern town of Dara’a. It has since spread across the land in a full-blown civil war pitting government forces against a rebel army of Army defectors, disaffected civilians and what the authorities say are foreign jihadists.


Hala Droubi reported from Dubai, United Arab Emirates, and Alan Cowell from Paris. Sebnem Arsu contributed reporting from Istanbul, and Hania Mourtada from Beirut, Lebanon.



Read More..

DealBook: ConAgra Foods to Buy Ralcorp for $5 Billion

12:36 p.m. | Updated

After being rejected last year, ConAgra Foods agreed on Tuesday to buy Ralcorp Holdings for roughly $5 billion in cash, reviving an effort to form the largest producer of private label packaged food in North America.

Under the terms of the deal, Ralcorp shareholders would receive $90 a share in cash, 28 percent above Ralcorp’s closing price on Monday. Including debt, the transaction is valued at about $6.8 billion.

Together, the two would have $4.5 billion in annual sales of private label goods, made for bakeries, grocery chains, restaurants and other food service customers.

“Ralcorp is already the largest private label food company in the U.S. and is well positioned for future growth,” Gary M. Rodkin, chief executive of ConAgra Foods, said in a statement. “Adding Ralcorp provides us with a much larger presence in the attractive and growing private label segment.”

Once regarded as the stepchildren of the food aisles, private label products have become brands in their own right as grocery store retailers have used them to set themselves apart from competitors.

Over the years, retailers invested heavily in improving the quality of their food products as well as the packaging and merchandising. Now, they have become ubiquitous among convenience stores, club stores, big box retailers and specialty concepts like Whole Foods and Trader Joe’s.

When the economy was weaker, consumers snapped up such private label brands, although a new report out on Tuesday from the SymphonyIRI Group, a market research firm, suggests that the growth of private label brands might be slowing.

The study found that the private label unit share of the total consumer packaged goods market fell to 17.1 percent in the 52 weeks ended Sept. 9 from 17.3 percent in the period a year earlier, although the dollar value of those products continued to inch ahead.

“Over the past two years, the trend of buying more private label brands has been flattening out, with dollar sales ticking up more slowly and unit sales declining slightly,” said Susan H. Viamari, editor of SymphonyIRI’s Times and Trends reports. “Consumers are still frugal, but because national brands have stepped up their game, they’re gaining back some share they lost to private label.”

Still, retailers are continuing to make investments in developing their private label lines. That is part of the reason ConAgra pursued Ralcorp so intently.

“Private label brands really have become true brands,” Ms. Viamari said. “There was a time when they were knockoffs you would bury in the bottom of your cart, but now in many cases they are just as good or even better than national brands and represent a smart purchase.”

There is an argument, however, that companies that offer both branded and private label operations risk cannibalizing their brands or muddying their relationships with their customers. That may not be a danger for ConAgra because its brands – Reddi-Wip, Chef Boyardee, Orville Redenbacher’s, to name a few – do not carry its name and thus stand on their own.

“It’s a challenge to manage a product portfolio that is broader but more complex, but there are also opportunities because you can forge more and different relationships with retailers,” said David Garfield, who leads the consumer products practice at AlixPartners.

ConAgra had a small private label business, and the addition of Ralcorp will bring private label to about a quarter of the company’s sales, said Jack Russo, a stock analyst with Edward Jones.

“ConAgra has a lot of brands that are good but not great, so this is not diluting its brand power,” Mr. Russo said. “And since retailers are interested in dealing with top brands, not second- and third-rate brands, this is a move that should jump start their growth rate because they now will have something else to sell that retailers want.”

The deal on Tuesday is a surprising turn of play for ConAgra, which unsuccessfully bid $5.2 billion to buy Ralcorp last year in an attempt to bulk up its generic foods business, supplementing its existing brands like Egg Beaters and Chef Boyardee.

But Ralcorp instead chose to spin off its branded cereals division – including Honey Bunches of Oats, Post Raisin Bran and Grape-Nuts – into a new company, Post Holdings. That company’s shares have risen nearly 27 percent since they began trading in February.

Ralcorp also made a number of acquisitions to bolster its remaining businesses.

Talks between the two companies revived this fall, when ConAgra again reached out about a union of the two food companies.

ConAgra expects to pay for the deal with existing cash, bank facilities and new debt. It plans to issue up to $350 million in new shares to help maintain its existing investment-grade credit rating.

ConAgra was advised by Centerview Partners, Bank of America Merrill Lynch and the law firm Davis Polk & Wardwell. Ralcorp was advised by Barclays, Goldman Sachs and the law firm Wachtell, Lipton, Rosen & Katz.

Read More..

Imaging Shows Progressive Damage by Parkinson’s





For the first time, researchers at the Massachusetts Institute of Technology report, brain imaging has been able to show in living patients the progressive damage Parkinson’s disease causes to two small structures deep in the brain.




The new technique confirms some ideas about the overall progress of the disease in the brain. But the effects of Parkinson’s vary in patients, the researchers said, and in the future, the refinement in imaging may help doctors monitor how the disease is affecting different people and adjust treatment accordingly.


The outward symptoms and progress of Parkinson’s disease — tremors, stiffness, weakness — have been well known since James Parkinson first described them in 1817. But its progress in the brain has been harder to document.


Some of the structures affected by the disease have been buried too deep to see clearly even with advances in brain imaging. An important recent hypothesis about how the disease progresses was based on the examinations of brains of patients who had died.


Now, a group of scientists at M.I.T. and Massachusetts General Hospital report that they have worked out a way to combine four different sorts of M.R.I. to get clear pictures of damage to two brain structures in people living with Parkinson’s. In doing so, they have added support to one part of the recent hypothesis, which is that the disease first strikes an area involved in movement and later progresses to a higher part of the brain more involved in memory and attention.


Suzanne Corkin, a professor emerita of behavioral neuroscience at M.I.T. and the senior author on the paper published online Monday in The Archives of Neurology, said that this progression was part of the hypothesis put forward in 2003 by Heiko Braak, a German neuroscientist, based on autopsies.


But, she said, because of the limits of brain imaging, “nobody could test this in living patients.”


David A. Ziegler, who was at M.I.T. when the research was done, and is now a postdoctoral researcher at the University of California, San Francisco, said that the study, of 29 patients with Parkinson’s and 27 healthy patients of roughly the same age, showed that the peanut-sized substantia nigra lost volume first, and another structure called the basal forebrain, involved in memory and attention, was struck later.


Glenda Halliday, a neuroscientist at Neuroscience Research Australia and the University of New South Wales, who was not involved in the study, said the paper confirmed “the progression of degeneration in two important affected brain regions in people with Parkinson’s.”


Dr. Corkin, Dr. Ziegler and their colleagues developed a way to use four different varieties of M.R.I. — each using different settings on the same machine — to come up with four different images that could be used to form one image that showed structures deep in the brain like the substantia nigra, long known to be important in Parkinson’s.


The disease kills brain cells, shrinking the parts of the brain that it affects, and the comparative study showed that the reduction in size of the substantia nigra showed up in early stage Parkinson’s patients, compared with a healthy group.


The reduction in size in the basal forebrain, compared with the healthy group, did not show up in the patients in the early stage, but was clear in patients in the later stage.


“This is a project we’ve been working on in our lab for years,” she said. A next step, already in progress, is to correlate damage to specific brain structures with symptoms.


Parkinson’s, she said, is a disease that shows the same broad outlines of development in most patients, but with considerable variation. Dementia may arrive early or may not appear. The M.R.I. technique described in the paper, she said, might help tease out what is going on in the brain in subgroups of Parkinson’s patients that show different symptoms and could influence treatment.


One important difference between the two brain structures is that damage to the substantia nigra decreases production of the neurotransmitter dopamine, while a smaller basal forebrain would reduce the production of a different chemical, acetylcholine.


The research is just one step, Dr. Ziegler said. One of the “big outstanding questions,” he said, is whether all patients will eventually get dementia.


Read More..

Imaging Shows Progressive Damage by Parkinson’s





For the first time, researchers at the Massachusetts Institute of Technology report, brain imaging has been able to show in living patients the progressive damage Parkinson’s disease causes to two small structures deep in the brain.




The new technique confirms some ideas about the overall progress of the disease in the brain. But the effects of Parkinson’s vary in patients, the researchers said, and in the future, the refinement in imaging may help doctors monitor how the disease is affecting different people and adjust treatment accordingly.


The outward symptoms and progress of Parkinson’s disease — tremors, stiffness, weakness — have been well known since James Parkinson first described them in 1817. But its progress in the brain has been harder to document.


Some of the structures affected by the disease have been buried too deep to see clearly even with advances in brain imaging. An important recent hypothesis about how the disease progresses was based on the examinations of brains of patients who had died.


Now, a group of scientists at M.I.T. and Massachusetts General Hospital report that they have worked out a way to combine four different sorts of M.R.I. to get clear pictures of damage to two brain structures in people living with Parkinson’s. In doing so, they have added support to one part of the recent hypothesis, which is that the disease first strikes an area involved in movement and later progresses to a higher part of the brain more involved in memory and attention.


Suzanne Corkin, a professor emerita of behavioral neuroscience at M.I.T. and the senior author on the paper published online Monday in The Archives of Neurology, said that this progression was part of the hypothesis put forward in 2003 by Heiko Braak, a German neuroscientist, based on autopsies.


But, she said, because of the limits of brain imaging, “nobody could test this in living patients.”


David A. Ziegler, who was at M.I.T. when the research was done, and is now a postdoctoral researcher at the University of California, San Francisco, said that the study, of 29 patients with Parkinson’s and 27 healthy patients of roughly the same age, showed that the peanut-sized substantia nigra lost volume first, and another structure called the basal forebrain, involved in memory and attention, was struck later.


Glenda Halliday, a neuroscientist at Neuroscience Research Australia and the University of New South Wales, who was not involved in the study, said the paper confirmed “the progression of degeneration in two important affected brain regions in people with Parkinson’s.”


Dr. Corkin, Dr. Ziegler and their colleagues developed a way to use four different varieties of M.R.I. — each using different settings on the same machine — to come up with four different images that could be used to form one image that showed structures deep in the brain like the substantia nigra, long known to be important in Parkinson’s.


The disease kills brain cells, shrinking the parts of the brain that it affects, and the comparative study showed that the reduction in size of the substantia nigra showed up in early stage Parkinson’s patients, compared with a healthy group.


The reduction in size in the basal forebrain, compared with the healthy group, did not show up in the patients in the early stage, but was clear in patients in the later stage.


“This is a project we’ve been working on in our lab for years,” she said. A next step, already in progress, is to correlate damage to specific brain structures with symptoms.


Parkinson’s, she said, is a disease that shows the same broad outlines of development in most patients, but with considerable variation. Dementia may arrive early or may not appear. The M.R.I. technique described in the paper, she said, might help tease out what is going on in the brain in subgroups of Parkinson’s patients that show different symptoms and could influence treatment.


One important difference between the two brain structures is that damage to the substantia nigra decreases production of the neurotransmitter dopamine, while a smaller basal forebrain would reduce the production of a different chemical, acetylcholine.


The research is just one step, Dr. Ziegler said. One of the “big outstanding questions,” he said, is whether all patients will eventually get dementia.


Read More..

DealBook: Autonomy's Ex-Chief Calls on H.P. Board to Defend Allegations

The former head of Autonomy, the British software maker that Hewlett-Packard acquired last year, is not happy about H.P.’s accusations of accounting fraud at his former company.

So he is calling on H.P. to defend its $8.8 billion write-down tied to the takeover.

In a public letter released on Tuesday, the executive, Mike Lynch, again rejected H.P.’s claims about Autonomy. (Mr. Lynch has not been accused of wrongdoing.) Instead, he argued that H.P. botched its takeover of the British company and mishandled its integration.

“Having no details beyond the limited public information provided last week, and still with no further contact from you, I am writing today to ask you, the board of H.P., for immediate and specific explanations for the allegations H.P. is making,” he wrote in the letter.

Mr. Lynch has been exceptionally vocal about defending his reputation and that of Autonomy, which grew over 16 years to become one of Britain’s most successful technology start-ups.

He emphasized that nothing improper had taken place at the company, and that it had followed all the rules set forth under British accounting guidelines. Possible discrepancies over how Autonomy recognized revenue from sales, he said, might be attributable to differences between British and American accounting rules.

In his letter, Mr. Lynch outlined a number of concerns about the $8.8 billion charge. Some of those questions were thinly veiled jabs at H.P., which fired him as the head of Autonomy in May after missing sales estimates. (He does not dispute that characterization, but has said he was hamstrung by a number of obstacles and a string of poor management decisions.)

Among his questions:

  • In order to justify a $5 billion accounting write-down, a significant amount of revenue must be involved. Please explain how such issues could possibly have gone undetected during the extensive acquisition due diligence process and H.P.’s financial oversight of Autonomy for a year from acquisition until October 2012 (a period during which all of the Autonomy finance reported to H.P.’s C.F.O., Cathie Lesjak).
  • Can H.P. really state that no part of the $5 billion write-down was, or should be, attributed to H.P.’s operational and financial mismanagement of Autonomy since the acquisition?
  • Why did H.P. senior management apparently wait six months to inform its shareholders of the possibility of a material event related to Autonomy?

An H.P. representative was not immediately available for comment.

Open Letter to the Board of Hp Final

Read More..

Protesters Gather Again in Cairo Streets to Denounce Morsi





CAIRO — Thousands of people flowed into the streets of Cairo, the Egyptian capital, Tuesday afternoon for a day of protest against President Mohamed Morsi’s attempt to assert broad new powers for the duration of the country’s political transition, dismissing his efforts just the night before to reaffirm his deference to Egyptian law and courts.




By early Tuesday afternoon in Cairo, a dense crowd of hundreds had gathered outside the headquarters of a trade group for lawyers, and thousands more had filed in around a small tent city in Tahrir Square. In an echo of the chants against Hosni Mubarak, Egyptian’s ousted president, almost two years ago, they shouted, “Leave, leave!” and “Bring down the regime!” They also denounced the spiritual leader of the Muslim Brotherhood, the Islamist group allied with Mr. Morsi.


A few blocks away, in a square near the American Embassy and the Interior Ministry headquarters, groups of young men resumed a running battle that began nine days ago, throwing rocks and tear gas canisters at riot police officers. Although those clashes grew out of anger over the deaths of dozens of protesters in similar clashes one year ago, many of the combatants have happily adopted the banner of protest against Mr. Morsi as well.


Egyptian television had captured the growing polarization of the country on Monday in split-screen coverage of two simultaneous funerals, each for a teenage boy killed in clashes set off by disputes over the new president’s powers. Thousands of supporters of Mr. Morsi and his allies in the Muslim Brotherhood marched through the streets of the Nile Delta city of Damanhour to bury a 15-year-old killed outside a Brotherhood office during an attack by protesters. And in Tahrir Square here in Cairo, thousands gathered to bury a 16-year-old killed in clashes with riot police officers and to chant slogans blaming Mr. Morsi for his death. “Morsi killed him,” the boy’s father said in a video statement circulated over the Internet.


“Now blood has been spilled by political factions, so this is not going to go away,” said Rabab el-Mahdi, a professor at the American University in Cairo and a left-leaning activist, adding that these were the first deaths rival factions had blamed on each other and not on the security forces of the Mubarak government since the uprising began last year. Still larger crowds were expected in the evening, as marchers from around the city headed for the square. Many schools and other businesses had closed in anticipation of bedlam, and on Monday, the Brotherhood called off a rival demonstration in support of the president, saying it wanted to avoid violence.


Egypt’s Supreme Judicial Council met again on Tuesday to consider its response to the president, and the leader of Al Azhar, a center of Sunni Muslim learning that is regarded as the pre-eminent moral authority here, met with groups of political leaders in an effort to resolve the battle over the president’s decree and the deadlock in the constitutional assembly, which is trying to draw up a new constitution.


But even as Mr. Morsi met with top judges Monday night in an effort to resolve the crisis, a coalition of opposition leaders held a news conference to declare that preserving the role of the courts was only the first step in a broader campaign against what Abdel Haleem Qandeil, a liberal intellectual, called “the miserable failure of the rule of the Muslim Brothers.” Mr. Morsi “unilaterally broke the contract with the people,” he declared. “We have to be ready to stand up to this group, protest to protest, square to square, and to confront the bullying.”


Mr. Morsi’s effort to remove the last check on his power over the political transition had brought the country’s fractious opposition groups together for the first time in a united front against the Brotherhood. But the show of unity papered over deep divisions between groups and even within them, said Ms. Mahdi of the American University.


“This is not a united front, and I am inside it,” she said. “Every single political group in the country is now divided over this — is this decree revolutionary justice or building a new dictatorship? Should we align ourselves with folool” — the colloquial term for the remnants of the old political elite — “or should we be revolutionary purists? Is it a conflict between the Muslim Brotherhood and the pro-Mubarak judiciary, or is this the beginning of a fascist regime in the making?”


Mayy El Sheikh contributed reporting.



Read More..

DealBook: S.E.C. Chief Who Overhauled Agency to Step Down

11:42 a.m. | Updated

Mary L. Schapiro, who overhauled the Securities and Exchange Commission after the financial crisis, announced Monday that she was stepping down as chairwoman of the agency.

In recent days, the S.E.C. informed the White House and Treasury Department that Ms. Schapiro planned to leave Dec. 14, becoming the first major departure from the Obama administration’s team of financial regulators. Ms. Schapiro will also relinquish her position as one of the five members of the agency’s commission, the group that oversees Wall Street and the broader financial markets.

The White House announced on Monday that President Obama was naming Elisse B. Walter, a commissioner at the S.E.C., as the new chairwoman. In a somewhat surprising move, Ms. Walter will not step into an interim post, but will take over the top spot for the foreseeable future.

Ms. Walter’s appointment does not require Congressional approval because the Senate previously confirmed her as a commissioner. Eventually, the White House is expected to nominate another agency chief, according to a person briefed on the matter.

Ms. Schapiro’s departure, which follows a bruising four-year tenure, was widely telegraphed. Ms. Schapiro, 57, has confided in staff members for more than a year that she was exhausted and hoped to leave after the November elections.

“It has been an incredibly rewarding experience to work with so many dedicated S.E.C. staff who strive every day to protect investors and ensure our markets operate with integrity,” Ms. Schapiro said in a statement. “Over the past four years we have brought a record number of enforcement actions, engaged in one of the busiest rule-making periods, and gained greater authority from Congress to better fulfill our mission.”

In 2008, Mr. Obama nominated Ms. Schapiro, a political independent, to head the S.E.C. at a time when extreme economic turmoil had shaken investor confidence in the country’s securities regulators.

The agency was faulted for its lax oversight of brokerage firms like Lehman Brothers, which failed in 2008 and contributed to the worst economic downturn since the Great Depression. Just weeks before Ms. Schapiro started as chairwoman, the Wall Street investor Bernard L. Madoff was accused of running a large Ponzi scheme, further damaging the credibility of regulators like the S.E.C., which missed crucial warning signs about the fraud.

“When Mary agreed to serve nearly four years ago, she was fully aware of the difficulties facing the S.E.C. and our economy as a whole,” Mr. Obama said in a statement. “But she accepted the challenge, and today, the S.E.C. is stronger and our financial system is safer and better able to serve the American people – thanks in large part to Mary’s hard work.”

Ms. Schapiro, a lifelong regulator who previously ran the Commodity Futures Trading Commission and the Financial Industry Regulatory Authority, quickly gained a reputation as a consensus builder determined to repair the agency’s reputation. A tireless preparer and self-described pragmatist, Ms. Schapiro overhauled the agency’s management ranks, revived the enforcement unit and secured more money and technology at a time when other agencies were being asked to cut back. She also helped craft new rules for Wall Street oversight, as part of the Dodd-Frank regulatory overhaul.

“The S.E.C. came back from the brink,” said Harvey L. Pitt, a former chairman of the agency under President George W. Bush. “I give her enormous credit for that.”

Consumer advocates and other critics, however, say she failed to grab the bully pulpit at a time the country needed a vocal critic of Wall Street. Since the financial crisis, the agency brought few enforcement cases against the Wall Street executives at the center of the crisis.

The S.E.C. notes it has brought a record number of cases over the last two years. While no top banking executives have been charged, the agency has filed actions against 129 people and firms tied to the crisis.

Ms. Walter, a Democrat who became an S.E.C. commissioner in 2008 and briefly served as the agency’s acting leader a year later, is a longtime ally of Ms. Schapiro. They overlapped at the Commodity Futures Trading Commission and Finra, where Ms. Walter was a senior regulator and lawyer. At the S.E.C., Ms. Walter was often the only reliable vote for Ms. Schapiro’s rule-making efforts and is now expected to carry out a similar agenda as chairwoman.

While Ms. Walter will take over, she may not serve the whole term. Among the other people that Mr. Obama may consider naming as agency chief include Mary J. Miller, a senior Treasury Department official, a person briefed on the matter said. Sallie L. Krawcheck, a former top executive at Citigroup and Bank of America, is also in the running, according to people with knowledge of the matter. The agency’s enforcement chief, Robert Khuzami, is a long-shot contender.

As for Ms. Schapiro, few expect her to follow her predecessors and move into private legal practice, where she would defend the banks she has spent years regulating. Instead, they say she is more likely to seek out a position at a university or research group.

Read More..

Chia Seeds Gain Popularity for Nutritional Benefits





First there were Chia Pets; now there are chia people.




Ubiquitous in television ads that began 30 years ago, Chia Pets were called “the pottery that grows.” Mixing chia seeds and water on the outside of an animal-shaped terra-cotta figurine produces a plant resembling green hair almost overnight.


Now, chia is having a second life as a nutritional “it” item. Whole and ground chia seeds are being added to fruit drinks, snack foods and cereals and sold on their own to be baked into cookies and sprinkled on yogurt. Grown primarily in Mexico and Bolivia, chia, like fish, is rich in omega-3 fatty acids, though of a different sort. It also has antioxidants, protein and fiber. Recognition of its nutritional value can be traced as far back as the Aztecs.


Companies like Dole and Nature’s Path have introduced chia products, which have begun showing up on shelves in mainstream grocery stores like Ralphs, Vons and Albertsons. Mintel, a market research firm, counted 100 products containing chia in a presentation it did in March on the potential of increasing the use of the seeds in dairy products.


“About two years ago, our retailers came to us and said, ‘We need you to be in this business everyone is talking about, the business of chia seeds,’ ” said Michael P. Hirsch, vice president of Joseph Enterprises, which sells Chia Pets and other novelty products and has now added chia seeds and milled chia called — what else? — Ch-Ch-Ch-Chia Omega.


Last spring, high demand collided with weather patterns that depressed production, raising prices and the awareness that chia had moved beyond the realm of health food stores into the broader market.


Janie Hoffman, founder of Mamma Chia fruit juices, was one of the first people to recognize chia’s potential as a food. She was complaining about flax seed — “I hate how you have to grind it and then it goes rancid” — to a friend, who asked why she wasn’t using chia instead. “She said it had no taste, it’s high in antioxidants, huge in omega-3, a far superior seed,” Ms. Hoffman said. “In short, she made me feel like an idiot — no one was using flax seed anymore.”


So she bought some chia seeds online and was quickly sold on their benefits. “I started incorporating it into everything I was eating,” she said. “Stir fries, yogurt, beverages — there really wasn’t anything in my kitchen that didn’t have chia in it.”


In 2009, Ms. Hoffman developed fruit juices with chia seeds suspended in them. (Exposure to liquid gives the seeds a sticky, gelatinous coating, which is how they bond to the terra-cotta pets.)


“My first sales call a year and a half later was to Whole Foods in the southern Pacific region,” she said. “I walked in to meet the buyer and presented this chia beverage and said I would like it to go into a few stores. She said, ‘No, I want you in all of them’ ” — about 40 stores — “and that was that.”


Within 11 months, Mamma Chia products were in Whole Foods stores across the nation, as well as in hundreds of bodegas and health and natural foods stores. They are now sold in Ralphs and Vons stores and will soon be in Albertsons.


“I personally think demand for it will grow for sure, though how big it will get is still a question,” said Brad C. Bartlett, president of Dole Food Company’s packaged foods business.


Dole chose chia as the first ingredient it would promote in its new Nutrition Plus line of products, which aim to provide a functional benefit to consumers. It won out over other candidates, Mr. Bartlett said, because of its long history as a source of nutrition — the Aztecs used it for many purposes — and because it does not require much processing to confer its benefits.


The company does independent clinical testing on each product in the Nutrition Plus line to back up claims it makes about their health benefits, and it was surprised by one finding: significantly more alpha-linolenic acid in omega-3 reached the bloodstream and was converted into eicosapentaenoic acid, a long-chain fatty acid considered good for the heart, when the seeds were milled rather than whole.


“That came as quite a surprise, and we stopped the rollout and reformulated our clusters to use milled chia instead of whole seeds,” Mr. Bartlett said, referring to Dole’s Chia & Fruit Clusters.


Nature’s Path, an organic cereal company, introduced its first chia-laced cereal, Apple Crumble Love Crunch, last December, and now has eight products that include the seed in some form. “Business has been great with these products — overwhelmingly positive and, perhaps surprisingly, not just in health food stores but also in regular grocery stores,” said Arjan Stephens, executive vice president of sales and marketing at Nature’s Path.


Mr. Stephens said chia’s nutritional attributes, along with its many uses in food processing, could turn it into a staple. “It can be used in gluten-free breads or waffles to add fluffiness or to replace eggs in vegan products,” he said. “It offers an alternative to those with nut allergies.”


Mr. Hirsch, the Joseph Enterprises vice president, was less certain that chia would be a blockbuster, even though his company is adding protein bars to its line of edible chia products, which are sold in Walgreens, CVS and other drugstores. He said he was concerned about the supply of chia seeds, which are harvested once a year and grown in rotation, usually with corn.


Australia has recently joined Mexico and Bolivia in the chia-production act with its own type of seed that is grown somewhat differently, Mr. Hirsch said. But it is a difficult crop to grow outside of the traditional areas, and the market is tiny, about $70 million.


“Everybody is looking at this because everybody is always looking for something new,” Mr. Hirsch said. “I also know from the sales at this point it’s a niche market still, and we don’t know how big the niche is yet.”


If that niche fails to expand, there will always be another Chia Pet. This year, Chia Hello Kitty is joining the lineup.


Read More..