Plane Carrying Vittorio Missoni Lost Near Venezuela

A small plane carrying four Italian tourists, including the head of the Missoni fashion business, disappeared off the coast of Venezuela on Friday morning, prompting a sea and air search mission that continued Saturday.

Vittorio Missoni, 58, an owner of the family-run label famed for its zigzag knitwear, and his wife, Maurizia Castiglioni, were aboard the plane, which was missing after takeoff from the island resort of Los Roques, the company confirmed in a statement on Saturday. The plane was bound for the international airport near the Venezuelan capital, Caracas, normally a half-hour trip.

Venezuelan officials said that four passengers and two crew members were aboard.

The interior minister, Nestor Reverol, said Friday night on Venezuelan television that the plane, a BN2 Islander, took off from Los Roques at 11:29 a.m. and that its last known position was 10 nautical miles south of Los Roques, an archipelago that is a popular destination among wealthy Europeans, particularly Italians.

The Missoni family is widely revered in the Italian fashion industry for its kaleidoscopic knits applied over the years to sweaters, home furnishings, beach towels and even water bottles. A wildly popular collaboration with Target in 2011, which revitalized interest in the label internationally, included a Missoni print bicycle.

The company was founded in the 1950s by Ottavio and Rosita Missoni, who by the 1970s were among the most prominent designers in Italian fashion. Their three children — Vittorio, Angela and Luca — took over the company in the 1990s, when the family business had lost some of its appeal, and are credited with turning it around.

Missoni’s sales have been reported as modest, around $100 million annually, but the label holds the prominence of a far bigger business as a result of the family’s dashing personalities. Mr. Missoni spearheaded the brand’s global expansion, first as general director of marketing and then as the company’s top executive in the United States and Italy.

A spokeswoman for Missoni said that the family had been informed by the Venezuelan Consulate that the plane had disappeared, but that they had not given up hope as the search continued. Italian news media staked out the company headquarters in Sumirago, Italy, in the foothills of the Alps, where the management met on Saturday. The news agency Ansa reported that family members had congregated in their nearby villa, while Luca Missoni had flown to Venezuela.

The company’s offices in Milan were closed on Saturday, but an employee, who declined to give her name, was answering the phones “because a lot of employees are calling to get information,” she said. “But we have very little news to tell them.”

Several Italian news broadcasts led with the disappearance of Mr. Missoni, noting that another plane, carrying eight Italians, disappeared after leaving Los Roques five years ago, on Jan. 4, 2008.

Mr. Missoni, an avid sports fisherman, and his wife were on vacation with friends, according to the company. The other passengers have been identified in Italian news reports as Elda Scalvenzi and Guido Foresti.

The Missoni siblings jointly own the company. Vittorio has managed the company’s commercial and manufacturing operations; Angela is the designer; and Luca the creative director.

Part of Mr. Missoni’s strategy has been to focus on the Missoni lifestyle, opening about 40 stores around the world and creating ad campaigns featuring many of the family’s glamorous members. In one image, Margherita Missoni, a daughter of Angela, appears with Ottavio and Vittorio, who are relaxing on a zigzag weave couch. The family’s compound in Sardinia has been featured in countless articles.

In 2005, the company created a successful fragrance business with Estee Lauder and, under Mr. Missoni’s direction, expanded into the hotel business with the Rezidor Hotel Group. The first Hotel Missoni opened in Edinburgh in 2009.

William Neuman contributed reporting from Caracas, Venezuela, and Elisabetta Povoledo from Rome.

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Cars, homes smarten up at Vegas tech extravaganza

SAN FRANCISCO/NEW YORK (Reuters) - At the world's largest technology conference that kicks off on Monday, the most intriguing innovations showcased may be gadgets and technology that turn everyday items into connected, smarter machines.

This year's Consumer Electronics Show in Las Vegas promises a new generation of "smart" gadgets, some controlled by voice and gestures, and technology advancements in cars, some of which already let you dictate emails or check real-time gas prices.

Pundits have long predicted that home appliances like refrigerators and stoves will be networked, creating an "Internet of things." With advancements in chips and the ubiquity of smartphones and tablets, it's now happening.

"We've been talking about this convergence of consumer electronics and computers and content for 20 years. It will actually be somewhat of a reality here, in that your phone, your tablet, your PC, your TV, your car, have a capability to all be connected," said Patrick Moorhead, principal analyst at Moor Insights & Strategy.

Despite the absence of tech heavyweights Apple Inc and Microsoft Corp, CES still draws thousands of exhibitors, from giants like Intel Corp and Samsung Electronics Co Ltd to startups hungry for funding.

Wireless chip maker Qualcomm Inc's CEO, Paul Jacobs, opens the festivities with a keynote speech on Monday, taking a spot traditionally reserved for Microsoft, which decided last year to sever ties with the show.

Jacobs said in a recent interview on PBS that he will show how wireless technology will be pushed way beyond smartphones into homes, cars and healthcare.

SMARTER SMARTPHONES

With venues spanning over 32 football fields across Las Vegas -- more than 1.9 million sq. ft. (176,516 sq. meters) -- CES is an annual rite for those keen to glimpse the newest gadgets before they hit store shelves. The show, which started in 1967 in New York, was the launch pad for the VCR, camcorder, DVD and HDTV.

While retailers prowl for products to fill their shelves, Wall Street investors look for products that are the next hit.

Intel and Qualcomm are expected to highlight improvements in "perceptual computing," which involves using cameras, GPS, sensors and microphones to make devices detect and respond to user activity.

"The idea is that if your devices are so smart, they should be able to know you better and anticipate and react to your requirements," said IDC analyst John Jackson.

This year, snazzier TVs will again dominate show space, with "ultra high-definition" screens that have resolutions some four times sharper than that of current displays. The best smartphones will likely be reserved for launch at Mobile World Congress in February.

There will also be a record number of auto makers showing the latest in-vehicle navigation, entertainment and safety systems, from Toyota's Audi to Ford, General Motors and Hyundai. The Consumer Electronics Association has forecast the market for factory-installed tech features in cars growing 11 percent this year to $8.7 billion.

BMW, for one, already provides speech recognition that is processed instantly through datacenters, converted into text and emailed without drivers taking their hands off the wheel. The luxury carmaker also offers data about weather, fuel prices and other items.

"Automotive has been this backwater of technology for a long time. Suddenly, we're seeing a lot of real innovation in automotive technology," Scott McGregor, CEO of chipmaker Broadcom, told Reuters ahead of the show.

(Editing by Edwin Chan and Leslie Gevirtz)

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'McDreamy' says he beat Starbucks for coffee chain

SEATTLE (AP) — "Grey's Anatomy" star Patrick Dempsey may be the real "McSteamy."

The actor, who was dubbed "McDreamy" as a star of the hospital drama while his co-star was called "McSteamy," may soon be serving hot, steaming cups of Joe.

Dempsey won a bankruptcy auction to buy Tully's Coffee, a small coffee chain based in Seattle. Among those he beat out is Tully's much bigger Seattle neighbor, Starbucks Corp., which is known for its ubiquitous white cups with a circular green mermaid logo.

Dempsey, whose company Global Baristas LLC plans to keep the Tully's name, declared victory on the social media site Twitter: "We met the green monster, looked her in the eye, and...SHE BLINKED! We got it! Thank you Seattle!

The win for Dempsey deals a rare setback for Starbucks on its home turf. Starbucks has long been both praised for bringing "coffeehouse culture" to the U.S. and criticized for crushing smaller chains. The coffee giant, which had planned to convert the Tully's cafes to its own brand, last month announced plans to expand its global footprint to 20,000 cafes over the next two years, up from the current 18,000.

Dempsey said in an interview on Friday that as the underdog in Seattle, Tully's will need to find its identity.

"It's a much smaller chain that has a lot of potential that hasn't been given the proper care," he said.

But in a statement shortly after the auction on Thursday, Starbucks insinuated that Dempsey shouldn't celebrate just yet.

Starbucks, which wanted to convert the Tully's cafes to its own brand, said that a final determination on the winning bid won't be made until a court hearing on Jan. 11. Starbucks said it's in a "backup" position" to buy 25 of the 47 Tully's cafes, with another undisclosed bidder making an offer for the remainder.

The combined bids of Starbucks and the undisclosed bidder come to $10.6 million, above the $9.2 million Dempsey's company is offering to pay through his company, which was formed in order to purchase Tully's. The other investors in Global Baristas aren't being disclosed.

Tully's Coffee, which is known for serving Joe with a milder taste than Starbucks brand, filed for Chapter 11 bankruptcy protection in October, citing lease obligations and underperforming stores. Tully's wholesale business, which includes Tully's Coffee in bags and single serve K-cup packs that are sold in supermarkets and other stores, is owned separately by Green Mountain Coffee Roasters Inc.

TC Global Inc., the parent company of Tully's, said in a release Friday that it was "encouraged and excited" about Dempsey's commitment to the chain.

Tully's President and CEO Scott Pearson called the deal a "great match" and that the goal is to make sure creditors get paid and to keep as many people employed as possible.

A bankruptcy court document signed late Friday by Pearson and Dempsey said TC Global had determined that Global Baristas submitted the successful bid.

"With this court filing, it's official - our group has been chosen as the successful bidder," Dempsey said in a statement. "We look forward to the court's final approval on Jan. 11."

Earlier in the day, Dempsey said he planned to be very involved in the running of the company, adding that the immediate challenges were to address bookkeeping issues, staff morale and sprucing up the coffee shops. Once the business is stabilized, Dempsey said the long-term goal would be to take the chain national.

"We can pull this off. We just have to take steps that are slow and smart," he said. "I'm going to get behind the counter. I'm going to serve coffee...I'm going to give the company a boost of energy."

Although Dempsey lives in Los Angeles, he plans to spend more time in Seattle, the city where "Grey's Anatomy" is set in. Dempsey said he believed there is room in the city for Tully's and the much larger Starbucks; he noted there might be people who are rooting for the underdog.

"In a society where there are so many big corporations that swallow the little guy, we thought, let's not let this happen to this company," he said.

Dempsey made an appearance Friday morning at a Tully's near Pike Place Market, shaking hands with workers and greeting customers before visiting other stores. Several dozen people, mostly women, came into the store.

Patrease Estelle, 45, works nearby, and came in with a small group from her office.

"I will take whatever I can get. A photo, a hug, a 'hey, how you doing,' a wink," said Estelle, who got a picture and handshake with the actor.

___

Blankinship reported from Seattle and Choi from New York.

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The New Old Age: Murray Span, 1922-2012

One consequence of our elders’ extended lifespans is that we half expect them to keep chugging along forever. My father, a busy yoga practitioner and blackjack player, celebrated his 90th birthday in September in reasonably good health.

So when I had the sad task of letting people know that Murray Span died on Dec. 8, after just a few days’ illness, the primary response was disbelief. “No! I just talked to him Tuesday! He was fine!”

And he was. We’d gone out for lunch on Saturday, our usual routine, and he demolished a whole stack of blueberry pancakes.

But on Wednesday, he called to say he had bad abdominal pain and had hardly slept. The nurses at his facility were on the case; his geriatrician prescribed a clear liquid diet.

Like many in his generation, my dad tended towards stoicism. When he said, the following morning, “the pain is terrible,” that meant agony. I drove over.

His doctor shared our preference for conservative treatment. For patients at advanced ages, hospitals and emergency rooms can become perilous places. My dad had come through a July heart attack in good shape, but he had also signed a do-not-resuscitate order. He saw evidence all around him that eventually the body fails and life can become a torturous series of health crises and hospitalizations from which one never truly rebounds.

So over the next two days we tried to relieve his pain at home. He had abdominal x-rays that showed some kind of obstruction. He tried laxatives and enemas and Tylenol, to no effect. He couldn’t sleep.

On Friday, we agreed to go to the emergency room for a CT scan. Maybe, I thought, there’s a simple fix, even for a 90-year-old with diabetes and heart disease. But I carried his advance directives in my bag, because you never know.

When it is someone else’s narrative, it’s easier to see where things go off the rails, where a loving family authorizes procedures whose risks outweigh their benefits.

But when it’s your father groaning on the gurney, the conveyor belt of contemporary medicine can sweep you along, one incremental decision at a time.

All I wanted was for him to stop hurting, so it seemed reasonable to permit an IV for hydration and pain relief and a thin oxygen tube tucked beneath his nose.

Then, after Dad drank the first of two big containers of contrast liquid needed for his scan, his breathing grew phlegmy and labored. His geriatrician arrived and urged the insertion of a nasogastric tube to suck out all the liquid Dad had just downed.

His blood oxygen levels dropped, so there were soon two doctors and two nurses suctioning his throat until he gagged and fastening an oxygen mask over his nose and mouth.

At one point, I looked at my poor father, still in pain despite all the apparatus, and thought, “This is what suffering looks like.” I despaired, convinced I had failed in my most basic responsibility.

“I’m just so tired,” Dad told me, more than once. “There are too many things going wrong.”

Let me abridge this long story. The scan showed evidence of a perforation of some sort, among other abnormalities. A chest X-ray indicated pneumonia in both lungs. I spoke with Dad’s doctor, with the E.R. doc, with a friend who is a prominent geriatrician.

These are always profound decisions, and I’m sure that, given the number of unknowns, other people might have made other choices. Fortunately, I didn’t have to decide; I could ask my still-lucid father.

I leaned close to his good ear, the one with the hearing aid, and told him about the pneumonia, about the second CT scan the radiologist wanted, about antibiotics. “Or, we can stop all this and go home and call hospice,” I said.

He had seen my daughter earlier that day (and asked her about the hockey strike), and my sister and her son were en route. The important hands had been clasped, or soon would be.

He knew what hospice meant; its nurses and aides helped us care for my mother as she died. “Call hospice,” he said. We tiffed a bit about whether to have hospice care in his apartment or mine. I told his doctors we wanted comfort care only.

As in a film run backwards, the tubes came out, the oxygen mask came off. Then we settled in for a night in a hospital room while I called hospices — and a handyman to move the furniture out of my dining room, so I could install his hospital bed there.

In between, I assured my father that I was there, that we were taking care of him, that he didn’t have to worry. For the first few hours after the morphine began, finally seeming to ease his pain, he could respond, “OK.” Then, he couldn’t.

The next morning, as I awaited the hospital case manager to arrange the hospice transfer, my father stopped breathing.

We held his funeral at the South Jersey synagogue where he’d had his belated bar mitzvah at age 88, and buried him next to my mother in a small Jewish cemetery in the countryside. I’d written a fair amount about him here, so I thought readers might want to know.

We weren’t ready, if anyone ever really is, but in our sorrow, my sister and I recite this mantra: 90 good years, four bad days. That’s a ratio any of us might choose.

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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After Fiscal Deal, Tax Code May Be Most Progressive Since 1979

WASHINGTON — With 2013 bringing tax increases on the incomes of a small sliver of the richest Americans, the country’s top earners now face a heavier tax burden than at any time since Jimmy Carter was president.

The last-minute deal struck by the departing 112th Congress raised taxes on a handful of the highest-earning Americans, with about 99.3 percent of households experiencing no change in their income taxes. But the Tax Policy Center estimates that the average family in the top 1 percent will pay a federal tax rate of more than 36 percent this year, up from 28 percent in 2008. That is the highest rate since 1979, at least.

By some measures, the tax code might now be the most progressive in a generation, tax economists said, while noting that every American is paying a lower burden currently than they did then. In fact, the total federal tax rate is still vastly lower for the very rich than it was at any point in the 1940s through 1970s. It has risen from historical lows, but is still closer to those lows than where it was in the postwar decades.

“We made the system more progressive by raising rates at the top and leaving them for everyone else,” said Roberton Williams of the Tax Policy Center, a research group based in Washington. “The offsetting issue is that the rich have gotten a lot richer.”

Indeed, over the last three decades the bulk of pretax income gains have gone to the wealthy — and the higher up on the income scale, the bigger the gains, with billionaires outpacing millionaires who outpaced the merely rich. Economists doubted that the tax increases would do much to reverse that trend.

With the recovery failing to improve incomes for millions of average Americans and the country running trillion-dollar deficits, President Obama made “tax fairness” a centerpiece of his re-election campaign. In the heated negotiations with House Speaker John A. Boehner, that translated into the White House’s insistence on tax increases for the top 2 percent of households and a continuation of tax breaks and cuts for a vast number of taxpayers.

Republicans resisted increasing tax rates and aimed for lower revenue targets, arguing that spending was the budget’s primary problem and that no American should see his or her taxes go up too much in such a sluggish economy. But ultimately they relented, and Congress cut a last-minute deal.

“A central promise of my campaign for president was to change the tax code that was too skewed towards the wealthy at the expense of working middle-class Americans,” Mr. Obama said after Congress reached an agreement.

That deal includes a host of tax increases on the rich. It raises the tax rate to 39.6 percent from 35 percent on income above $400,000 for individuals, and $450,000 for couples. The rate on dividends and capital gains for those same taxpayers was bumped up 5 percentage points, to 20 percent. Congress also reinstated limits on the amount households with more than $300,000 in income can deduct. On top of that, two new surcharges — a 3.8 percent tax on investment income and a 0.9 percent tax on regular income — hit those same wealthy households.

As a result of the taxes added in both the deal and the 2010 health care law, which came into effect this year, taxpayers with $1 million in income and up will pay on average $168,000 more in taxes. Millionaires’ share of the overall federal tax burden will climb to 23 percent from 20 percent.

The result is a tax code that squeezes hundreds of billions of dollars more from the very well off — about $600 billion more over 10 years — while leaving the tax burden on everyone else mostly as it was. And the changes come after 30 years of both Republican and Democratic administrations doing the converse: zeroing out federal income taxes for many poor working families while also reducing the tax burden for households on the higher end of the income scale.

“Back at the end of the Carter and beginning of the Reagan administrations, we had a pretty severe income-tax burden for people at a low level of income. It was actually kind of appalling,” said Alan D. Viard, a tax expert at the American Enterprise Institute, a right-of-center research group in Washington. “Policy makers in both parties realized that was bad policy and started whittling away at it” by expanding credits and tinkering with tax rates.

After those changes and the new law, comparing average tax rates for poor households and wealthy households, 2013 might be the most progressive tax code since 1979. But economists cautioned that measuring progressivity is tricky. “It’s not like there is some scientific measure of progressivity all economists agreed upon,” said Leonard E. Burman, a professor of public affairs at Syracuse University. “People look at different numerical measures and they’ve changed in different ways at different income levels.”

Mr. Viard said that over time the code had become markedly more progressive for the poor compared with the middle class. But it arguably did not become much more progressive for the rich compared with the middle class, or the very rich compared with the rich, in part because of the George W. Bush-era tax cuts on investment income.

An anesthesiologist who earns a $500,000 salary subject to payroll and income taxes might pay a higher tax rate than a hedge fund manager making $1 billion subject mostly to capital-gains taxes, for instance.

Economists are also divided on the ultimate effect of those tax increases on the wealthy to income growth and income inequality in the United States. The recession hit the incomes of the rich hard, but they have snapped back much more strongly than those for middle or low-income workers.

“I’d still rather be really rich, even if I’m getting taxed much more than a low-income person” would be, Mr. Williams of the Tax Policy Center added.

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Fatah Rally in Gaza Looks Toward Unity With Hamas

GAZA CITY, Gaza Strip (AP) — Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they were routed from power there by the Islamist militants in 2007.

The rally, approved by Gaza's Hamas rulers, marks a renewed attempt by the rival Palestinian factions to show unity following a fierce Hamas battle with Israel in November and Fatah's subsequent recognition bid at the United Nations.

But many obstacles still remain before the sides can settle their differences, chief among them how to deal with Israel. Several rounds of reconciliation talks over recent years centered on finding ways to share power have failed to yield results.

Still, both sides expressed optimism following Friday's unprecedented Fatah show of strength that included hours of waving their yellow flags, dancing in the streets and chanting party slogans. For years, Fatah loyalists in Gaza faced retribution from the Hamas regime, which banned them from gathering.

"We feel like birds freed from our cage today," said Fadwa Taleb, 46, who worked as a police officer for Fatah before the Hamas takeover and attended Friday's rally with her family. "We are happy and feel powerful again."

Top Fatah officials arrived in Gaza for the first time since they were violently ousted. Palestinian President Mahmoud Abbas, who rules the West Bank, did not attend the event, but he addressed the crowd on a large screen telling them "there is no substitute for national unity."

Hamas Prime Minister Ismail Haniyeh also expressed hope that the two factions could reconcile their differences, sending Fatah a message that he hoped they could work together as joint representatives of the Palestinian people, according to Fatah official Nabil Shaath. Hamas was not directly involved in the event.

Ihab al-Ghussian, the chief spokesman for the Hamas government in Gaza, said the sides would "work toward the consolidation of national unity." Egyptian officials say a first such meeting in months between the factions is scheduled for next week in Cairo.

After the rally, Haniyeh called Abbas to congratulate him and Abbas in turn thanked Haniyeh for letting it happen, said Haniyeh spokesman Taher al-Nunu. He added that both leaders expressed hope that the cooperation would lead to renewed reconciliation efforts.

The warmer tone is a result of recent gains by both factions.

Abbas has enjoyed a boost in his status since he led the Palestinians' successful bid to upgrade their status at the United Nations to a non-member observer state. On Friday, he signed a presidential decree officially changing the name of the Palestinian Authority to the "State of Palestine." All Palestinian stamps, signs and official letterhead will henceforth be changed to bear the new name, according to the official Palestinian news agency Wafa.

The move marked the first concrete, albeit symbolic, step the Palestinians have taken following the November decision by the United Nations. Abbas has hesitated to take more dramatic steps, like filing war crimes indictments against Israel at the International Criminal Court, a tactic that only a recognized state can carry out.

Hamas, meanwhile, has gained new support among Palestinians following eight days of fighting with Israel in November, during which Israel pounded the seaside strip from the air and sea, while Palestinians militants lobbed rockets toward the Israeli cities of Jerusalem and Tel Aviv for the first time.

Following the fighting, Fatah allowed Hamas to hold its first rally in the West Bank since the 2007 split. Hamas returned the favor Friday by allowing the Fatah rally to take place.

Still, the two sides have wide differences — over Israel and over the possibility of sharing power.

Fatah has held several rounds of peace talks with the Jewish state and says it is committed to a two-state solution. Hamas does not recognize Israel and is officially committed to its destruction. Hamas has carried out hundreds of deadly attacks against Israeli citizens and is regarded by the U.S. and Israel as a terrorist organization.

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EU says its Google case not affected by U.S. ruling

BRUSSELS (Reuters) - A decision by U.S. regulators to end a probe into whether Google Inc hurt rivals by manipulating internet searches will not affect the European Union's examination of the company.

"We have taken note of the FTC (Federal Trade Commission) decision, but we don't see that it has any direct implications for our investigation, for our discussions with Google, which are ongoing," said Michael Jennings, a spokesman for the European Commission, the EU executive.

U.S. regulators on Thursday ended their investigation into the giant internet company, which runs the world's most popular search engine.

Other internet companies, such as Microsoft Corp, had complained about Google tweaking its search results to give prominence to its own products. But the FTC said there was not enough evidence to pursue a big search-bias case.

The European Commission has for the past two years been investigating complaints against Google, including claims that it unfairly favored its own services in its search results.

Google presented informal settlement proposals to the Commission in July. On December 18 the Commission gave the company a month to come up with detailed proposals to resolve the investigation.

If it fails to address the complaints and is found guilty, Google could eventually be fined up to 10 percent of its revenue - a fine of up to $4 billion.

(Reporting By Ethan Bilby; Editing by Sebastian Moffett and David Goodman)

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'McDreamy' says he beat Starbucks for coffee chain

SEATTLE (AP) — "Grey's Anatomy" star Patrick Dempsey may be the real "McSteamy."

The actor, who was dubbed "McDreamy" by fans of the hospital drama while his co-star affectionately has been called "McSteamy," won a bankruptcy auction to buy Tully's Coffee, a small coffee chain based in Seattle.

Among those Dempsey beat out is Tully's much bigger Seattle neighbor, Starbucks Corp., which wanted to convert the cafes to its own brand.

Dempsey, whose company Global Baristas LLC plans to keep the Tully's name, declared victory on the social media site Twitter with the message: "We met the green monster, looked her in the eye, and...SHE BLINKED! We got it! Thank you Seattle!

But Starbucks says not so fast. The chain, which has 18,000 cafes worldwide, said in a statement that a final determination on the winning bid won't be made until a court hearing on Jan. 11. Starbucks said it's in a "back-up" position" to buy 25 of the 47 Tully's cafes, with another undisclosed bidder making an offer for the remainder.

The combined bids of Starbucks and the undisclosed bidder come to $10.6 million, above the $9.2 million Dempsey is offering to pay through his company.

Tully's Coffee, which has more than 500 employees and locations in Washington and California, filed for Chapter 11 bankruptcy protection in October, citing lease obligations and underperforming stores. TC Global Inc., its parent company, said in a release Friday that it was "encouraged and excited" about Dempsey's commitment to the chain.

"I'm thrilled that we won and I'm even more excited about saving Tully's Coffee and its hundreds of jobs," Dempsey said. Seattle has a special place in Dempsey's career — "Grey's Anatomy" took place in a fictional hospital in the city.

Also in the running to buy Tully's was Baristas Coffee, which operates a chain of drive-thru espresso stands featuring female employees in skimpy outfits.

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Scant Proof Is Found to Back Up Claims by Energy Drinks

Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.

Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.

The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.

“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.

Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.

Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.

As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.

Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.

“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”

A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.

In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.

Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.

Consider the case of taurine, an additive used in most energy products.

On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.

But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.

Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.

Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.

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U.S. Continues to Add Jobs at Slow Pace, Report Shows

Despite their concerns about looming tax increases and government spending cuts, American employers added 155,000 jobs in December, about apace with job growth over the last year, the Labor Department reported on Friday.

The biggest gains were in health care, food services, construction and manufacturing, with the latter two probably helped by rebuilding after Hurricane Sandy. Government payrolls fell modestly once again, the report said. The unemployment rate was 7.8 percent, the same as in November, whose rate was revised up from 7.7 percent.

“It’s not a home-run report by any stretch, but it’s constructive,” said John Ryding, chief economist at RDQ Economics. “It’s another month of fairly stable, solid, moderate job creation.”

Over the course of 2012, the country added 1.8 million jobs, despite continued job losses in the government sector and anxiety related to the presidential election and scheduled tax increases and spending cuts. 

Economists are unsure of what the rest of the year holds for the American job market, but most are forecasting more of the same: hiring fast enough to stay just ahead of population growth, but still too slow to make a sizable dent in the 12.2-million-person backlog of unemployed workers.

At the current pace of job growth, it would take seven years to get the unemployment rate back to where it was when the recession began in December 2007, according to one calculation. A number of encouraging trends in the economy suggest that businesses have good reason to speed up hiring, including the housing recovery, looser credit for small businesses, a rebound in China and pent-up demand for new autos. Friday’s report also showed slightly faster wage growth and longer working hours in December, both of which bode well for hiring.

But Congress’s last-minute deal earlier this week to raise taxes will offset some of these sources of growth, since higher taxes trim how much money consumers have available to spend each week.

“Job creation might firm a little bit, but it’s still looking nothing like the typical recovery year we’ve had in deep recessions in the past,” Mr. Ryding said. “There’s nothing in the deal to do that and nothing in this latest jobs report to suggest that. We’re a long way short of the 300,000 job growth that we need."

The fiscal compromise also renewed for a year the federal government’s emergency unemployment benefits program. That allows workers to continue receiving unemployment benefits for up to 73 weeks, depending on the unemployment rate in the state where they live, and acts as a stimulus to the American economy because unemployment benefits are spent almost immediately.

The extension has proved to be a tremendous relief to the two million workers who would have otherwise abruptly lost their benefits this week.

“We woke up on Wednesday morning and saw the news and just said, ‘thank God, thank God, thank God,’ and then went out and went food shopping because we knew we had money coming in,” said Gina Shadis, 56, of Newton, N.J.

Both she and her husband, Stephen, were laid off within the last 14 months from jobs they had held for more than a decade: she from a quality assurance manager position at an environmental testing lab, and he as foreman and senior master technician at an auto dealership. They are now each receiving $548 per week in federal jobless benefits, or about a quarter of their pay at their most recent jobs.

“It has just been such a traumatic time,” she said. “You know you wake up in the morning with shoulders tense and head aching because you didn’t sleep the night before from worrying.”

While Congress’s deal on New Year’s Day brought clarity to tax and unemployment benefits policies, lawmakers have still not settled their disputes about federal spending cuts and the debt ceiling. Economists worry that the lingering uncertainty over these issues could discourage businesses from investing in more workers or equipment.

“We may be seeing the calm before the storm right now,” said Ian Shepherdson, chief economist at Pantheon Macroeconomic Advisors, noting that a recent survey from the National Federation of Independent Business found that alarmingly few small companies plan to hire in the coming months. “Small businesses are wringing their hands in horror at what’s going on in Washington.”

In the meantime, more than six million workers have exhausted their unemployment benefits altogether since the recession began in December 2007, according to the National Employment Law Project, a labor advocacy group.

Millions of workers are sitting on the sidelines and so are not counted in the total tally of unemployed. Some are merely waiting for the job market to improve, and others are trying to invest in skills to appeal to employers who are already hiring.  

“I have a few prospects who say they want me to work for them when I graduate,” said Jordan Douglas, a 24-year-old single mother in Pampa, Tex., who is enrolled in a special program that allows her to receive jobless benefits while attending school full time to become a registered nurse. She gets $792 in benefits every two weeks, a little less than half of what she earned in an administrative position at the nursing home that laid her off last year.

She calculates that her federal jobless benefits will run out the very last week of nursing school.

“This had to have been a sign from God that I had to do this since it all worked out so well,” she said.

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Oil Rig’s Owner Settles Gulf Spill Case for $1.4 Billion

NEW ORLEANS (AP) — The Justice Department announced on Thursday that it has reached a $1.4 billion settlement with Transocean Ltd., the owner of the drilling rig that sank after an explosion killed 11 workers and spawned the massive 2010 oil spill in the Gulf of Mexico.

The Switzerland-based Transocean will pay the money to resolve the department’s civil and criminal inquiry into the company’s role in the Deepwater Horizon disaster.

Transocean will pay $1 billion in civil penalties, $400 million in criminal penalties and will plead guilty to violating the Clean Water Act.

BP PLC, which leased the rig from Transocean, already has agreed to pay a record $4.5 billion in penalties and plead guilty to manslaughter and other criminal charges related to the spill. The deal with BP doesn’t resolve the federal government’s civil claims against the London-based oil company.

In September, Transocean said in a regulatory filing that it had discussed a $1.5 billion settlement with the Justice Department that had to clear several hurdles before it could be completed. The company said one sticking point was whether a settlement would include claims for environmental damage under the Oil Pollution Act of 1990.

Transocean previously announced it had reserved $2 billion for paying claims related to the Deepwater Horizon disaster.

Transocean also said in the September filing that it had rejected settlement offers last year from BP and a group of attorneys for Gulf Coast residents and businesses who blame the spill for economic damages. Those claims are still pending.

Last month, U.S. District Judge Carl Barbier in New Orleans gave final approval to a class-action settlement agreement between BP and a team of private plaintiffs’ attorneys. BP estimates it will pay about $7.8 billion to resolve these claims, but the settlement isn’t capped.

Barbier also is set to preside over a trial designed to identify the causes of BP’s deadly well blowout and assign percentages of fault to the companies involved. The first phase of the trial is scheduled to start Feb. 25.

BP reported profits of more than $25 billion in 2011, but for Transocean the year resulted in a loss of about $5.7 billion, some of it attributed to contingencies for litigation resulting from the sinking of the Deepwater Horizon.

A series of government investigations has spread out the blame for the nation’s worst offshore oil spill among BP, Transocean and other partners on the project, including cementing contractor Halliburton.

The Deepwater Horizon was drilling in water a mile deep about 50 miles southeast of the Louisiana coast when it exploded on the night of April 20, 2010.

The rig burned for about 36 hours before sinking.

As engineers made repeated attempts to halt the flow of oil from BP’s busted Macondo well, millions of gallons of crude flowed out. Marshes, beaches and fishing grounds across the northern Gulf were fouled by the oil.

___

Associated Press writer Pete Yost in Washington contributed to this report.

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Regulators to make announcement on Google probe

WASHINGTON (Reuters) - U.S. regulators said on Thursday they would make an announcement at 1 p.m. EST (1800 GMT) about their long-running investigation of the Web search giant Google.

The Federal Trade Commission is expected to announce that Google will agree to end the practice of using reviews and similar data from rivals for its own products, and will allow advertisers to export data to independently evaluate ad campaigns, according to three sources.

Google is also expected to refrain from asking for sales bans when it files infringement lawsuits related to essential patents, except in exceptional cases, the sources said.

The three sources asked to not be named to protect business relationships.

(Reporting By Diane Bartz; editing by John Wallace)

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Former Michigan Gov. Granholm leaving Current TV

LANSING, Mich. (AP) — Former Michigan Gov. Jennifer Granholm says she soon will leave Current TV, where she has hosted a public affairs program for the past year.

Granholm made the announcement in a Facebook post late Wednesday, the same day it was revealed that Pan-Arab news channel Al-Jazeera has acquired Current TV.

In the post, Granholm says her "agreement with Current was for the duration of the election (and the sale)." She says "The War Room" will air "for the next few weeks through the transition, but after that" she plans to go "back to teaching, speaking and other things."

Granholm spokeswoman Liz Boyd says the ex-governor would have no additional comment on the move.

Granholm is a Democrat who served two terms as Michigan governor from 2003 through 2010.

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The Long Life of the ‘Perfect’ Woman

What did happen to Elsie Scheel, the “perfect” woman mentioned in an article in Wednesday’s New York Times that described how people considered overweight had a slightly lower risk of dying than those of normal weight?

A century ago, at age 24, Miss Scheel was the subject of a spate of news media coverage after the “medical examiner of the 400 ‘co-eds’ ” at her college, Cornell University, described her as the epitome of “perfect health,” according to a 1912 New York Times article. That article and others also gave her dimensions: 5-foot-7 and 171 pounds, which would have corresponded to a body mass index of 27, putting Miss Scheel in the overweight category. Miss Scheel, it turns out, lived a long life, dying in 1979 in St. Cloud, Fla., three days shy of her 91st birthday.

But though it may be tempting to conclude that Miss Scheel’s longevity exemplifies the benefits of a not-too-low B.M.I, her case is only one anecdote, of course. And, according to family members and to hints provided in early articles, she was a person who valued being active and athletic, had a strong and confident attitude, and, as a daughter of a doctor and a mother of a doctor, may have been steeped in healthy habits that were much more relevant to her survival than her weight.

“She never took an aspirin or a Tylenol,” a granddaughter, Karen Hirsh Meredith, of Broken Arrow, Okla., said in an interview Wednesday. She kept up hobbies like stamp collecting and wrote pieces for the St. Cloud newspaper. And, Ms. Meredith said, “she was still driving late in life.”

Ms. Meredith said she did not recall her grandmother having any illnesses or being hospitalized except for shortly before she died, when she went into the hospital with stomach pain. She ended up having surgery for a perforated bowel and died the next day, Ms. Meredith said.

A death notice said Miss Scheel, who was Mrs. Hirsh when she died, had been a “practical nurse,” although Ms. Meredith said the family believed she did not work after she had children. In 1918 she married Frederick Rudolph Hirsh, an architect who supervised the building of the New York Public Library and who was a widower with two children, Frederick Jr. and Mary. He died in 1933 at 68, leaving his wife to raise a son, John, and a daughter, Elise. She moved to Florida from Mount Vernon, N.Y., in the 1940s and never remarried.

Miss Scheel’s mother, Sophie Bade Scheel, a physician educated at New York Medical College, maintained an active medical practice at a time when relatively few women did. And Miss Scheel may have benefited from good genes: her three siblings were 79, 88 and 93 when they died.

Published reports from 1912 and 1913 provide glimpses of the type of person Miss Scheel was and of her immediate-post-"perfect” experience.

She participated in many sports, playing basketball at Cornell. “I play a guard, where my weight helps,” she told a newspaper. She was a suffragette and, the Times article said, “doesn’t know what fear is.”

She ate only three meals every two days, loved beefsteak and shunned candy and caffeine. An article in The Oregonian asked her about her advice for healthy living, reporting that “Miss Scheel feels that the average girl does too much of the wrong sort of thing — too many dances and not enough good bracing tramps. I just got back from a 25-mile tramp to Enfield Falls.”

Some of the news media coverage was catty, even brutal. And it was extremely detailed. Her particulars — the size of her chest, waist and hips — were compared to the Venus de Milo.

A day after the Times article, The New York Herald ran a story about Miss Scheel above the fold on its front page: “Brooklyn Venus Much Too Large is Verdict of Physical Culturists.” These “physical culturists” claimed that Miss Scheel’s weight and height “cannot be reconciled with the accepted ideal of female beauty.”

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Congressional Members Blast House for Ignoring Storm Aid Bill

Elected officials from the New York area erupted with outrage on Wednesday after the House refused to take up a federal aid package for states that suffered damages from Hurricane Sandy, and even local Republicans blasted their Congressional leaders for their inaction.

“I’m saying right now, anyone from New York or New Jersey who contributes one penny to Congressional Republicans is out of their minds,” Representative Peter T. King, a Long Island Republican, said during an interview on CNN on Wednesday morning. “Because what they did last night was put a knife in the back of New Yorkers and New Jerseyans. It was an absolute disgrace.”

And Representative Michael G. Grimm, a Republican from Staten Island, said the failure to vote was a “betrayal.” He urged that action be taken as soon as possible.

“It’s not about politics,” he said. “It’s about human lives.”

Last week, the Senate adopted a $60.4 billion aid package, and on Wednesday Mr. King and other local politicians said they had been promised that the House would bring it up for a vote before the current legislative session ends on Thursday.

That is unlikely now, and the aid bill will have to be reintroduced in the new Congress and passed by both chambers.

Brendan Buck, a spokesman for House Speaker John A. Boehner, Republican of Ohio. said the speaker would be meeting with Republicans from the New York and New Jersey delegations Wednesday at 3 p.m. He planned to tell them that passing the aid bill would be his “top priority” when Congress begins its new session, Mr. Buck said.

President Obama issued a statement Wednesday calling for an immediate vote.

“When tragedy strikes, Americans come together to support those in need,” he said. “I urge Republicans in the House of Representatives to do the same, bring this important request to a vote today, and pass it without delay for our fellow Americans.”

Gov. Chris Christie of New Jersey, a Republican, and Gov. Andrew M. Cuomo of New York, a Democrat, released a joint statement condemning the decision not to vote on the storm aid bill this week.

“With all that New York and New Jersey and our millions of residents and small businesses have suffered and endured, this continued inaction and indifference by the House of Representatives is inexcusable,” they said. They added, “This failure to come to the aid of Americans following a severe and devastating natural disaster is unprecedented.”

Mr. Cuomo, talking with reporters in Albany, went further. He said that House Republicans had “reneged on their word” to vote on the hurricane relief measure this week, and he accused them of “dereliction of duty.”

But Mayor Michael R. Bloomberg, a political independent, said that although he was “disappointed,” he would not criticize the Republican leadership. He told reporters in New York City that he had been talking with Mr. Boehner and that “he assured me that this would be considered in the month of January.”

The bill was apparently delayed by its bad timing. It was eclipsed by negotiations between Democrats and Republicans over a plan intended to avert a series of tax increases and spending cuts that automatically took effect in the new year.

Senator Roy Blunt, a Republican from Missouri, suggested that the aid request was harmed by its size.

“Sometimes when you ask for too much, you don’t get anything,” he told CNN.

As word spread that the House would not bring up the bill for a vote late Tuesday night, lawmakers from both parties who represent people in some of the hardest-hit areas began to speak out.

Representative Nita M. Lowey, a Democrat from Westchester County, said Tuesday, “I truly feel betrayed this evening.”

By Wednesday morning, the anger was even sharper.

“Denying emergency aid to Superstorm Sandy victims is a new low for House Republicans,” said Senator Frank R. Lautenberg, a New Jersey Democrat. “When our neighbors in other states are knocked down by emergency events, we put partisan politics aside and extend a helping hand to help them get back up. Helping struggling families recover from disasters has never been a partisan issue in Washington and it never should be. New Jersey and New York families have been hurt badly by Sandy and it is shameful that Washington Republicans are adding to their pain by standing in the way of their recovery.”

Senator Charles E. Schumer, a New York Democrat, blamed Mr. Boehner.

Raymond Hernandez contributed reporting from Washington, Thomas Kaplan from Albany and David W. Chen from New York.

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Apple testing new iPhone, iOS 7: report

(Reuters) - Apple Inc has started testing a new iPhone and the next version of its iOS software, news website The Next Web reported.

The company's shares rose as much as 4.3 percent but eased a little to trade up 3 percent at $546.11 by mid-day on the Nasdaq.

Application developers have found in their app usage logs references to a new iPhone identifier, iPhone 6.1, running iOS 7 operating system, the website reported.

Apple's iPhone 5 bears the identifiers "iPhone 5.1" and "iPhone 5.2" and is powered by the iOS 6 operating system.

Developer logs show that the app requests originate from an internet address on Apple's Cupertino campus, suggesting that Apple engineers are testing compatibility for some of the popular apps, the website said.

"Although OS and device data can be faked, the unique IP footprint leading back to Apple's Cupertino campus leads us to believe this is not one of those attempts," the website said.

Raymond James analyst Tavis McCourt, however, expects the next version of the iconic smartphone to be called iPhone 5S and not iPhone 6.

Apple typically tags the interim version of its phones with an "S" before moving on to a new version. iPhone 3GS followed iPhone 3G and the iPhone 4S followed iPhone 4.

McCourt also said he wouldn't be surprised if Apple looked at an earlier launch because of the stress on its supply chain caused by late-year launches.

Apple launched iPhone 5 in September and it has been reported that the new iPhone will be released in the middle of 2013.

Techradar.com reported last month that Apple could unveil the next version of its iPhone as early as the spring of 2013.

(Reporting by Supantha Mukherjee and Chandni Doulatramani in Bangalore; Editing by Saumyadeb Chakrabarty)

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Los Angeles photog killed shooting Bieber's car

LOS ANGELES (AP) — Justin Bieber says his thoughts and prayers are with the family of a paparazzo who was fatally struck by a car after taking pictures of the singer's Ferrari sports car in Los Angeles.

In a statement released Wednesday by Island Def Jam Music Group, Bieber says he hopes the tragedy will inspire legislation to protect the lives of celebrities, police, bystanders and photographers themselves.

Police Officer James Stoughton says the photographer died Tuesday evening at a hospital. Stoughton says Bieber was not in the Ferrari at the time.

Sgt. Rudy Lopez told the Los Angeles Times (http://lat.ms/ZTtuCt ) that the pop star's friend was driving the car when it was pulled over for a traffic stop.

Police say the paparazzo was struck by another motorist while returning to his own car.

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Employers Must Offer Family Health Care, Affordable or Not, Administration Says

WASHINGTON — In a long-awaited interpretation of the new health care law, the Obama administration said Monday that employers must offer health insurance to employees and their children, but will not be subject to any penalties if family coverage is unaffordable to workers.

The requirement for employers to provide health benefits to employees is a cornerstone of the new law, but the new rules proposed by the Internal Revenue Service said that employers’ obligation was to provide affordable insurance to cover their full-time employees. The rules offer no guarantee of affordable insurance for a worker’s children or spouse. To avoid a possible tax penalty, the government said, employers with 50 or more full-time employees must offer affordable coverage to those employees. But, it said, the meaning of “affordable” depends entirely on the cost of individual coverage for the employee, what the worker would pay for “self-only coverage.”

The new rules, to be published in the Federal Register, create a strong incentive for employers to put money into insurance for their employees rather than dependents. It is unclear whether the spouse and children of an employee will be able to obtain federal subsidies to help them buy coverage — separate from the employee — through insurance exchanges being established in every state. The administration explicitly reserved judgment on that question, which could affect millions of people in families with low and moderate incomes.

Many employers provide family coverage to full-time employees, but many do not. Family coverage is much more expensive, and the employee’s share of the premium is typically much larger.

In 2012, according to an annual survey by the Kaiser Family Foundation, premiums for employer-sponsored health insurance averaged $5,615 a year for single coverage and $15,745 for family coverage. The employee’s share of the premium averaged $951 for individual coverage and more than four times as much, $4,316, for family coverage.

Starting in 2014, most Americans will be required to have health insurance. Low- and middle-income people can get tax credits to help pay their premiums, unless they have access to affordable coverage from an employer.

In its proposal, the Internal Revenue Service said, “Coverage for an employee under an employer-sponsored plan is affordable if the employee’s required contribution for self-only coverage does not exceed 9.5 percent of the employee’s household income.”

The rules, though labeled a proposal, are more significant than most proposed regulations. The Internal Revenue Service said employers could rely on them in making plans for 2014.

In writing the law, members of Congress often conjured up a picture of employees working year-round at full-time jobs. But in drafting the rules, the I.R.S. wrestled with the complex reality of part-time, seasonal and temporary workers.

In addition, the administration expressed concern that some employers might try to evade the new requirements by firing and rehiring employees, manipulating their work hours or using temporary staffing agencies. The rules include several provisions to prevent such abuse.

The law says an employer with 50 or more full-time employees may be subject to a tax penalty if it fails to offer coverage to “its full-time employees (and their dependents).”

Employers asked for guidance, and the Obama administration provided it, saying that a dependent is an employee’s child under the age of 26.

“Dependent does not include the spouse of an employee,” the proposed rules say.

Thus, employers must offer coverage to children of an employee, but do not have to make it affordable. And they do not have to offer coverage at all to the spouse of an employee.

The administration said that the rules — which apply to private businesses, nonprofit organizations and state and local government agencies — would require changes at many work sites.

“A number of employers currently offer coverage only to their employees, and not to dependents,” the I.R.S. said. “For these employers, expanding their health plans to add dependent coverage will require substantial revisions to their plans.”

In view of this challenge, the agency said it would grant a one-time reprieve to employers who fail to offer coverage to dependents of full-time employees, provided they take steps in 2014 to come into compliance. Under the rules, employers must offer coverage to employees in 2014 and must offer coverage to dependents as well, starting in 2015.

The new rules apply to employers that have at least 50 full-time employees or an equivalent combination of full-time and part-time employees. A full-time employee is a person employed on average at least 30 hours a week. And 100 half-time employees are considered equivalent to 50 full-time employees.

Thus, the government said, an employer will be subject to the new requirement if it has 40 full-time employees working 30 hours a week and 20 half-time employees working 15 hours a week.

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Scant Proof Is Found to Back Up Claims by Energy Drinks

Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.

Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.

The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.

“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.

Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.

Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.

As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.

Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.

“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”

A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.

In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.

Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.

Consider the case of taurine, an additive used in most energy products.

On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.

But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.

Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.

Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.

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Pakistani Militants Gun Down 7 Aid Workers

Fayaz Aziz/Reuters

An injured driver survived an ambush by gunmen in Swabi district, Pakistan, on Tuesday.

ISLAMABAD, Pakistan — Continuing a militant campaign of violence against aid workers in Pakistan, gunmen on Tuesday shot dead seven Pakistani teachers and health workers, six of them women, police officials said.

There was no immediate claim of responsibility. But the shooting, in the Swabi district of the northwestern province of Khyber-Pakhtunkhwa, fit a pattern of militant attacks against charity and aid workers across the country in recent weeks that officials have attributed to the Pakistani Taliban. The militant offensive has brought a wave international outrage, particularly because it has focused on vaccination and health workers in a country where polio and measles have made troubling gains.

The attack on Tuesday, near the village of Sher Afzal Banda, was conducted by two men on a motorcycle who opened fire on a van bringing the workers home, the police said. The dead worked for the private Pakistani aid group Support With Working Solution, which works in the health and education sectors.

“They opened fire and killed six females and one male,” said Javed Akhtar, the executive director of the aid group, in a telephone interview. “One child, aged 7 to 8 years, miraculously survived.” His group started out in 1991 and in conjunction with other aid groups has focused on Khyber-Pakhtunkhwa Province and on South Waziristan in the tribal region, both deeply affected by both poverty and militancy.

Five of the dead were young women who worked as teachers at a primary-level school the charity ran in the area, Mr. Akhtar said. The other two were health workers.

Mr. Akhtar said that no prior warning or threat had been given to his organization by militants. But he and a wide range of Pakistani officials believed that the attack was part of the broader Pakistani Taliban campaign against aid workers.

Last month, at least eight Pakistani volunteers in an internationally supported polio vaccination drive were killed by militants across the country. Senior militants leaders have long accused vaccination drives of being a cover for government and international espionage and regularly threatened workers and officials involved in the effort, though never before to such deadly effect.

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Ban on demanding Facebook passwords among new 2013 state laws

CHICAGO (Reuters) - Employers in California and Illinois will be prohibited from demanding access to workers' password-protected social networking accounts and teachers in Oregon will be required to report suspected student bullies thanks to new laws taking effect in 2013.

In all, more than 400 measures were enacted at the state level during 2012 and will become law in the new year, according to the National Conference of State Legislatures (NCSL).

Some of the statutes, which deal with everything from consumer protection to gun control and healthcare, take effect at the stroke of midnight. Others will not kick in until later in the year.

The raft of measures includes a new abortion restriction in New Hampshire, public-employee pension reform in California and Alabama, same-sex marriage in Maryland, and a requirement that private insurers in Alaska cover autism in kids and young adults, NCSL said.

In New Hampshire, a rarely used form of late-term abortion will become illegal except to save the life of the mother - and even then only if two doctors from separate hospitals certify the procedure is medically necessary.

John Lynch, the state's outgoing Democratic governor, had vetoed the measure, saying it would threaten the lives of women in rural areas. But the state's Republican-controlled legislature later overrode him.

In California and Illinois, laws that take effect at 12:01 a.m. local time will make it illegal for bosses to request social networking passwords or non-public online account information from their employees or job applicants.

Michigan's Republican Governor Rick Snyder signed a similar measure into law earlier this month that took effect immediately. The Michigan law also penalizes educational institutions for dismissing or failing to admit a student who does not provide passwords and other account information used to access private internet and email accounts, including social networks like Facebook and Twitter.

But workers and job seekers in all three states will still need to be careful what they post online: Employers may continue to use publicly available social networking information. So inappropriate pictures, tweets and other social media indiscretions can still come back to haunt them.

Gun violence - in places where it's all too common, such as Chicago, and in places where it's unexpected, such as Sandy Hook Elementary School in Newtown, Connecticut - was big news in 2012. But only a handful of new state firearms laws are set to take effect in 2013.

In Michigan, the definition of a "pistol" under the law will now include any firearm less than 26 inches in length. The new definition encompasses some rifles with folding stocks and will make the weapons subject to the same restrictions as pistols.

In Illinois, certain guns currently regulated by state law, including paintball guns, will be excluded from the definition of a firearm and participants in military re-enactments will be exempt from some weapons laws.

Another big story in 2012 was the effort by lawmakers in a number of cash-strapped states to put their public employee pension funds on a sounder financial footing.

In California and Alabama, reforms designed to begin to address the unfunded liabilities of those retirement systems will take effect in 2013.

Among the other new laws on the books in 2013:

* In California, prison workers and peace officers will now be prohibited from having sex with inmates and prisoners in transport.

* In Illinois, sex offenders will be prohibited from distributing candy on Halloween, or playing Santa or the Easter Bunny.

* In Oregon, employers won't be allowed to advertise a job vacancy if they won't consider applicants who are currently out of work.

* In Kentucky, residents will be prohibited from releasing feral or wild hogs back into the wild and Illinois will ban the possession and sale of shark fins.

* And in Florida, the term "motor vehicle" will no longer apply to the specialized all-terrain vehicles with over-sized tires known as "swamp buggies" that are popular in some parts of the state.

(Reporting by James B. Kelleher; Editing by Greg McCune and Nick Zieminski)

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Pasadena's Rose Parade kicks off on a cold morning

PASADENA, Calif. (AP) — The 124th Rose Parade in Pasadena kicked off on a chilly New Year's morning with the theme "Oh the Places You'll Go!" named in honor of the Dr. Seuss book.

Led by this year's grand marshal, British primatologist Jane Goodall, the parade features 42 floats covered with flowers and plant material, 23 marching bands and 21 equestrian units from across the country.

An estimated 700,000 spectators are lining the streets to view the 5-mile-long spectacle, which is broadcast around the world. This year's parade features the first-ever float entered by the Defense Department and a couple getting married on a float.

The $247,000 military float is a replica of the Korean War Veterans Memorial in Washington to commemorate the veterans from that conflict.

The float that scooped up the parade's grand "Sweepstakes" prize for the most beautiful floral presentation and design was "Dreaming in Paradise" by fruit and vegetable producer Dole.

Die-hard parade fans staked out their spots early Monday with folding chairs, hammocks and portable barbeque grills.

They brought in the new year by throwing marshmallows, shaving cream and tortillas, and then hunkered down to stay warm in sleeping bags during a particularly cold night for Southern California.

The wave of under-40-degree temperature spurred a number of cold-weather exposure calls to emergency personnel, police department spokeswoman Lisa Derderian told City News Service.

As of 8 a.m. Tuesday, police had made a total of 22 arrests along the parade route since 6 p.m. Monday, said police Lt. Rick Aversan.

All but one arrest were for public intoxication. The other was for possession of burglary tools that could have been used to break into cars, police said.

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Hispanic Pregnancies Fall in U.S. as Women Choose Smaller Families

ORLANDO, Fla. — Hispanic women in the United States, who have generally had the highest fertility rates in the country, are choosing to have fewer children. Both immigrant and native-born Latinas had steeper birthrate declines from 2007 to 2010 than other groups, including non-Hispanic whites, blacks and Asians, a drop some demographers and sociologists attribute to changes in the views of many Hispanic women about motherhood.

As a result, in 2011, the American birthrate hit a record low, with 63 births per 1,000 women ages 15 to 44, led by the decline in births to immigrant women. The national birthrate is now about half what it was during the baby boom years, when it peaked in 1957 at 122.7 births per 1,000 women of childbearing age.

The decline in birthrates was steepest among Mexican-American women and women who immigrated from Mexico, at 25.7 percent. This has reversed a trend in which immigrant mothers accounted for a rising share of births in the United States, according to a recent report by the Pew Research Center. In 2010, birthrates among all Hispanics reached their lowest level in 20 years, the center found.

The sudden drop-off, which coincided with the onset of the recession, suggests that attitudes have changed since the days when older generations of Latinos prized large families and more closely followed Roman Catholic teachings, which forbid artificial contraception.

Interviews with young Latinas, as well as reproductive health experts, show that the reasons for deciding to have fewer children are many, involving greater access to information about contraceptives and women’s health, as well as higher education.

When Marucci Guzman decided to marry Tom Beard here seven years ago, the idea of having a large family — a Guzman tradition back in Puerto Rico — was out of the question.

“We thought one, maybe two,” said Ms. Guzman Beard, who gave birth to a daughter, Attalai, four years ago.

Asked whether Attalai might ever get her wish for a little brother or sister, Ms. Guzman Beard, 29, a vice president at a public service organization, said: “I want to go to law school. I’m married. I work. When do I have time?”

The decisions were not made in a vacuum but amid a sputtering economy, which, interviewees said, weighed heavily on their minds.

Latinos suffered larger percentage declines in household wealth than white, black or Asian households from 2005 to 2009, and, according to the Pew report, their rates of poverty and unemployment also grew more sharply after the recession began.

Prolonged recessions do produce dips in the birthrate, but a drop as large as Latinos have experienced is atypical, said William H. Frey, a sociologist and demographer at the Brookings Institution. “It is surprising,” Mr. Frey said. “When you hear about a decrease in the birthrate, you don’t expect Latinos to be at the forefront of the trend.”

D’Vera Cohn, a senior writer at the Pew Research Center and an author of the report, said that in past recessions, when overall fertility dipped, “it bounced back over time when the economy got better.”

“If history repeats itself, that will happen again,” she said.

But to Mr. Frey, the decrease has signaled much about the aspirations of young Latinos to become full and permanent members of the upwardly mobile middle class, despite the challenges posed by the struggling economy.

Jersey Garcia, a 37-year-old public health worker in Miami, is in the first generation of her family to live permanently outside of the Dominican Republic, where her maternal and paternal grandmothers had a total of 27 children.

“I have two right now,” Ms. Garcia said. “It’s just a good number that I can handle.”

“Before, I probably would have been pressured to have more,” she added. “I think living in the United States, I don’t have family members close by to help me, and it takes a village to raise a child. So the feeling is, keep what you have right now.”

But that has not been easy. Even with health insurance, Ms. Garcia’s preferred method of long-term birth control, an IUD, has been unaffordable. Birth control pills, too, with a $50 co-payment a month, were too costly for her budget. “I couldn’t afford it,” she said. “So what I’ve been doing is condoms.”

According to research by the National Latina Institute for Reproductive Health, the overwhelming majority of Latinas have used contraception at some point in their lives, but they face economic barriers to consistent use. As a consequence, Latinas still experience unintended pregnancy at a rate higher than non-Hispanic whites, according to the institute.

And while the share of births to teenage mothers has dropped over the past two decades for all women, the highest share of births to teenage mothers is among native-born Hispanics.

“There are still a lot of barriers to information and access to contraception that exist,” said Jessica Gonzáles-Rojas, 36, the executive director of the institute, who has one son. “We still need to do a lot of work.”

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