Starbucks to Open Another 1,500 Cafes in the U.S.

NEW YORK (AP) — Another Starbucks may soon pop up around the corner, with the world's biggest coffee company planning to add at least 1,500 cafes in the U.S. over the next five years.

The plan, which would boost the number of Starbucks cafes in the country by about 13 percent, was announced at the company's investor day in New York Wednesday. Taking into account Canada and South America, the company plans to add a total of 3,000 new cafes in its broader Americas region.

Worldwide, the company says it will have more than 20,000 cafes by 2014, up from its current count of about 18,000. Much of that growth will come from China, which the company says will surpass Canada as its second-biggest market.

Although Starbucks has been intensifying its growth overseas and building its packaged-goods business back at home, the majority of its revenue still comes from its more than 11,100 cafes in the United States.

In an interview ahead of its investor day, CEO Howard Schultz said the U.S. expansion plans are based "on the current strength of our business"

Just a few months ago, the company had predicted it would open just 1,000 new cafes in the country over the next five years.

The upbeat expansion plans mark a turnaround from Starbucks' struggles during the recession. After hitting a rough patch, the company brought back Schultz as CEO in 2008 and embarked on massive restructuring effort that included closing 10 percent of its U.S. stores.

Cliff Burrows, who heads Starbucks' domestic business, said the problem wasn't that Starbucks was oversaturated, but that the company hadn't been careful about its store openings. In the years leading up to the downturn, the company was opening well over 1,000 stores a year. That led to cafes in locations where signs or traffic might not be optimal, he said.

Burrows said Starbucks has gotten more sophisticated, and noted that the cafes opened in recent years are among the company's best performers.

Sales at new cafes are averaging about $1 million a year, for example, above the company's target of $900,000. It costs about $450,000 to build a new cafe.

Since Starbucks already has a broad footprint, the company's expansion is intended to "deepen" its presence with additional stores in markets across the country, said Troy Alstead, Starbucks' chief financial officer. That means establishing stores — including drive-thrus and smaller cafes — in more convenient locations for customers. And even as it expands, Starbucks said it expects to maintain growth at cafes open at least a year. The figure, a key metric of health, has ranged between 7 percent and 8 percent globally in the past three years.

The continued U.S. sales growth will be fueled by the new products, such as Evolution premium juices and Via single-serve coffee packets. Looking forward, Starbucks is also looking to improve its food menu and is testing a new menu of baked goods from La Boulange, a small San Francisco-based chain it acquired earlier this year. The new croissants, loaf cakes and other items will spread to about 2,500 cafes next year and go national sometime in 2014, Burrows said. The company says only about a third of customers currently buy food with their drinks.

In a test aimed at building sales in the evening hours, the company also started serving beer and wine at about a dozen locations earlier this year, with food such as chicken skewers and dates wrapped in bacon.

And most recently, Starbucks announced plans to acquire Teavana, a chain that has 300 locations in shopping malls. When the announcement was made last month, Schultz said the company would "do for tea what it did for coffee."

That includes plans to expand Teavana's presence beyond the shopping mall with stand-alone shops that have "tea bars" that serve specialty drinks. The company declined to say when Starbucks cafes would begin serving Teavana drinks — and it hasn't decided on whether it will continue to sell Tazo in cafes.

After a string of acquisitions in recent years to build on its core business, Schultz indicated Wednesday that the company would hold off on any additional purchases in the near future, noting that the company has "enough to handle."

To build its packaged-goods business, Starbucks plans to let customers earn points on their My Starbucks loyalty card starting next year when they purchase Starbucks bagged coffees in supermarkets and other outlets. Customers currently earn points only when they make purchases in Starbucks stores.

The picture isn't rosy around the globe, however. Europe remains a sore spot for Starbucks, with a key sales figure falling in the region 1 percent during the latest quarter. In an effort to boost results, the company has been closing underperforming stores and licensing of some of its cafes in the region.

In the United Kingdom, Starbucks is also embroiled in a row over its taxes. The company has been doing business in Britain for 15 years and has 700 outlets but it has yet to record a profit — and therefore pay any taxes.

Starbucks says this is due to a complex process where its taxable profits in the U.K. are calculated after royalties paid to its European headquarters in the Netherlands have been deducted.

Following criticism in the U.K. parliament and a campaign by protest group U.K. Uncut, Starbucks said this week that it was reviewing its tax approach.

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AP reporters Jill Lawless and David Stringer contributed to this report from London

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Egyptians Protesting Draft Constitution Are Met With Tear Gas

CAIRO — Egyptian riot police fired tear gas Tuesday night at tens of thousands of demonstrators who were converging on the presidential palace in Cairo to protest the country’s new draft constitution, which was rushed to completion last week by an assembly dominated by Islamists.

It was the first time that the government of Mohamed Morsi, Egypt’s first democratically elected president, has resorted to such forcible tactics against demonstrators. The huge scale of the protests on Tuesday dealt a blow to the legitimacy of the new charter, which goes before the country’s voters in a referendum scheduled for Dec. 15.

The secular and anti-Islamist groups that organized the protests say that the draft constitution allows religious authorities too much influence over the Egyptian state, and have even likened it to the blueprints drawn up for Iran by Ayatollah Khomenei before the 1979 revolution there.

Protest organizers are still debating whether to urge Egyptians to vote against the constitution or to boycott the referendum entirely. Either way, many have their eyes on elections for a new parliament that would be held two months after the constitution is approved. They hope to capitalize on a public backlash against the heavy-handed tactics employed in the constitution-drafting process by the president’s Islamist allies to gain seats in the new parliament and diminish the Islamists’ political power.

The country’s private media outlets mounted a protest of their own against the draft constitution’s limits on freedom of expression. Eleven newspapers withheld publication on Tuesday, and at least three private television networks said they would not broadcast on Wednesday.

“You are reading this message because Egypt Independent objects to continued restrictions on media liberties, especially after hundreds of Egyptians gave their lives for freedom and dignity,” declared a short statement set against a black background on the Web site of Egypt Independent, the English-language sister publication of the country’s largest independent daily, Al Masry Al Youm, on Tuesday morning. (By the afternoon, the Web site was back to normal.)

The one-day blackout and the mass march in Cairo were the most pointed actions yet in a push by liberal and secular groups to block the draft constitution, which was approved on Friday by the Islamist-dominated assembly despite the boycotts and objections of almost all its non-Islamist delegates.

Mr. Morsi, of the Muslim Brotherhood’s political party, has sought to claim authority above any judicial review so that his Islamist allies could get the constitution through quickly, an act that itself prompted loud protests. Mr. Morsi argued that he needed the powers to overcome potential obstructions from judges appointed by Hosni Mubarak, the deposed president, or from secular opponents who he said were seeking to derail the transition to democracy.

His opponents say the Islamists are trying to ram through a flawed constitution that will allow them to push Egyptian society in the direction of religious conservatism.

Among other criticisms, analysts and human rights groups say the draft contains loopholes that could eviscerate its provisions for freedom of expression. Although it ostensibly declares a right to free speech, the constitution also expressly prohibits “insults” to “religious prophets.”

The charter declares that one purpose of the news media is to uphold public morality and the “true nature of the Egyptian family,” and it specifies that government authorization will be required to operate a television station or a Web site.

“The protection of freedom of expression is fatally undermined by all the provisions that limit it,” said Heba Morayef, a researcher with Human Rights Watch who has studied the text. “On paper, they have not protected freedom of expression. It is designed to let the government limit those rights on the basis of ‘morality’ or the vague concept of ‘insult.’ ”

What’s more, critics say, the push to ratify the draft coincides with a cascade of accusations from Egypt’s new Islamist leaders that elements of the media are biased against them, and even that they are part of a counterrevolutionary conspiracy to thwart the transition to democracy rather than let Islamists win.

As part of a decree expanding his own powers until the passage of the constitution, Mr. Morsi recently passed a law for “protection of the revolution” that covered crimes including insults to the president, the Parliament or the courts. And he created a specially designated circuit within the court system to try those suspected of violating the law, along with those accused of abuses against civilians under the Mubarak government.

Mr. Morsi’s justice minister has already initiated investigations against at least three journalists for insulting the judiciary — the branch of government with the most crucial role in protecting the free press, said Ms. Morayef of Human Rights Watch.

“You are calling insulting the authorities a crime against the revolution?” she said. “That is authoritarianism. That is a lack of understanding of what ‘free expression’ means.”

The Web site of the state newspaper Al Ahram reported that at least 60 of its own journalists had joined a march to protest the constitutional restrictions.

Advisers to Mr. Morsi counter that the draft constitution expands on the negligible protections of free expression that prevailed under Mr. Mubarak, and noted that in one of his few previous presidential decrees, Mr. Morsi acted to support media freedom. In the Mubarak era, insulting the president was a crime punishable by imprisonment. But after a newspaper editor was jailed for that offense in late August, Mr. Morsi changed the law to forbid incarceration until a court verdict, allowing the imprisoned journalist, Islam Afifi of Al Dustour, to go free without spending even a night behind bars.

Adding to the suspense, a top Egyptian court on Tuesday postponed an expected session to consider the legitimacy of Mr. Morsi’s expansion of his powers until passage of the constitution.

And his party issued a statement warning prominent leaders of the secular opposition that it would hold them responsible for any acts of violence that occurred. It directed the warning at three former presidential candidates: Mohamed ElBaradei, the former head of the International Atomic Energy Agency; Hamdeen Sabahi, a Nasserite party leader; and Amr Moussa, a foreign minister under Mr. Mubarak.

Mayy El Sheikh contributed reporting.

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EMC, VMware to merge data and cloud app assets into new group

(Reuters) - EMC Corp, the world's leading maker of corporate data storage equipment, and its publicly-traded subsidiary, software maker VMware Inc, are planning to merge their data analytics and cloud application assets, EMC said on its website.

EMC said on Tuesday the companies expect to combine a number of divisions into the new group - called the Pivotal Initiative - by the second quarter of 2013 and said the specific operational structure will be determined then.

Paul Maritz, EMC's Chief Strategy Officer, will head the group, EMC said.

An EMC spokeswoman declined to elaborate on the plans.

The companies will provide an update on the details of the plans in the first quarter of next year, EMC said.

The move will combine EMC's data analytics division Greenplum and its Pivotal Labs group with VMware's vFabric, SpringSource and Gemstone units as well VMware's data analytics company Cetas and CloudFoundry, a cloud computing platform as a service.

This will affect about 600 employees from VMware and 800 employees from EMC, the company said.

Analysts said the realignment may eventually result in a spin-out of the new group.

"This is a very good move," said Kaushik Roy, a longtime EMC watcher who is a principal with Hercules Technology Growth Capital.

"Both companies have applications that are overlapping," he said, adding that "if things go well they may spin it off".

Tech analyst Alkesh Shah at Buckingham Research Group said the companies could decide on a partial spin-out of the unit in 2014/2015.

"This realignment should enable EMC to position itself more as a Cloud enabler while VMware can concentrate on its expanded strategy of the software-defined datacenter," Shah said.

(Reporting By Nicola Leske, editing by Nick Zieminski)

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Fleetwood Mac readies tour and new music

NEW YORK (AP) — Fleetwood Mac is heading back on the road, and that means the top-selling group will release new music — sort of.

On its 34-city North American tour, which kicks off April 4 in Columbus, Ohio, the band will perform two new songs, and it could mean a new album will follow. Or not.

Stevie Nicks recently sang on tracks that Lindsey Buckingham, Mick Fleetwood and John McVie worked on, calling the sessions "great." But Nicks also says she's not sure where the band fits in today's music industry.

"Whether or not we're gonna do any more (songs), we don't know because we're so completely bummed out with the state of the music industry and the fact that nobody even wants a full record," she said. "Everybody wants two songs, so we're going to give them two songs."

Nicks said depending on the response to the new tracks — which Buckingham calls "the most Fleetwood Mac-y stuff ... in a long time" — more material could come next.

"Maybe we'll get an EP out of it or something," Buckingham said.

Nicks will continue to record solo albums, though. The group is celebrating the 35th anniversary of the best-selling "Rumours" album, which has moved some 20 million units in the United States. She knows that's not possible again, despite the success of Adele's "21," which has sold 10 million units in America in less than two years.

"This is Adele's 'Rumours,'" Nicks said. "She had a baby, she's going to take a year off to take care of her baby — that's why I never had any kids. She's going to go back and start writing again, you never know what the next record's going to be. Is it going to sell 10 million records? You don't know," she said.

Buckingham said he initially wanted to record a new album, but Nicks "wasn't too into that." But the guitarist and singer knows that new music isn't a priority for the band's fans.

"It wouldn't matter if they didn't hear anything new. In a way there's a freedom to that — it becomes not what you got, but what you do with what you got. Part of the challenge of this tour is figuring out a presentation that has some twists and turns to it without having a full album," he said.

Fleetwood Mac, which was formed in 1967, last released an album in 2003, though they hit the road in 2009. Nicks and Buckingham — who originally joined the band in 1974 as a couple — both released solo albums and toured last year. Buckingham had suggested that Fleetwood Mac tour last year, but says getting everyone to agree was tough.

"If you look at Fleetwood Mac as a group, you can make the case of saying we're a bunch of individuals who don't necessarily belong in the same group together, but it's the synergy of that that makes us so good. But it also makes the politics a little more tenuous," he said. "You can say that not only can it be a political minefield, someone's always causing trouble, right? I caused trouble for years so I can't point any fingers."

The tour also includes cities such as New York, Chicago, Boston, Las Vegas and Los Angeles, and will end June 12 in Detroit.

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Online:

http://www.fleetwoodmac.com/

You can follow Music Writer Mesfin Fekadu on Twitter at twitter.com/MusicMesfin

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Sign Language Researchers Broaden Science Lexicon

Imagine trying to learn biology without ever using the word “organism.” Or studying to become a botanist when the only way of referring to photosynthesis is to spell the word out, letter by painstaking letter.

For deaf students, this game of scientific Password has long been the daily classroom and laboratory experience. Words like “organism” and “photosynthesis” — to say nothing of more obscure and harder-to-spell terms — have no single widely accepted equivalent in sign language. This means that deaf students and their teachers and interpreters must improvise, making it that much harder for the students to excel in science and pursue careers in it.

“Often times, it would involve a lot of finger-spelling and a lot of improvisation,” said Matthew Schwerin, a physicist with the Food and Drug Administration who is deaf, of his years in school. “For the majority of scientific terms,” Mr. Schwerin and his interpreter for the day would “try to find a correct sign for the term, and if nothing was pre-existing, we would come up with a sign that was agreeable with both parties.”

Now thanks to the Internet — particularly the boom in online video — resources for deaf students seeking science-related signs are easier to find and share. Crowdsourcing projects in both American Sign Language and British Sign Language are under way at several universities, enabling people who are deaf to coalesce around signs for commonly used terms.

This year, one of those resources, the Scottish Sensory Centre’s British Sign Language Glossary Project, added 116 new signs for physics and engineering terms, including signs for “light-year,”  (hold one hand up and spread the fingers downward for “light,” then bring both hands together in front of your chest and slowly move them apart for “year”), “mass” and “X-ray” (form an X with your index fingers, then, with the index finger on the right hand, point outward). 

The signs were developed by a team of researchers at the center, a division of the University of Edinburgh in Scotland that develops learning tools for students with visual and auditory impairments. The researchers spent more than a year soliciting ideas from deaf science workers, circulating lists of potential signs and ultimately gathering for “an intense weekend” of final voting, said Audrey Cameron, science adviser for the project. (Dr. Cameron is also deaf, and like all non-hearing people interviewed for this article, answered questions via e-mail.)

Whether the Scottish Sensory Centre’s signs will take hold among its audience remains to be seen. “Some will be adopted, and some will probably never be accepted,” Dr. Cameron said. “We’ll have to wait and see what happens.”

Ideally, the standardization of signs will make it easier for deaf students to keep pace with their hearing classmates during lectures. “I can only choose to look at one thing at a time,” said Mr. Schwerin of the F.D.A., recalling his science education, “and it often meant choosing between the interpreter, the blackboard/screen/material, or taking notes. It was like, pick one, and lose out on the others.”

The problem doesn’t end at graduation. In fact, it only intensifies as new discoveries add unfamiliar terms to the scientific lexicon. “I’ve had numerous meetings where I couldn’t participate properly because the interpreters were not able to understand the jargon and they did not know any scientific signs,” Dr. Cameron said.

One general complaint about efforts to standardize signs for technical terms is the idea that, much like spoken language, sign language should be allowed to develop organically rather than be dictated from above.

“Signs that are developed naturally — i.e., that are tested and refined in everyday conversation — are more likely to be accepted quickly by the community,” said Derek Braun, director of the molecular genetics laboratory at Gallaudet University in Washington, D.C., which he said was the first biological laboratory designed and administered by deaf scientists.

Since at least the 1970s, deaf scientists have tried to address the lack of uniformity by gathering common signs for scientific terms in printed manuals and on videotapes. The problem has always been getting deaf students and their interpreters to adopt them.

Often, at science conferences, “local interpreters that we never met before would often use different signs for the same terms, leading to confusion,” said Caroline Solomon, a biology professor at Gallaudet University who is deaf.

This article has been revised to reflect the following correction:

Correction: December 4, 2012

An earlier version of this article misstated the origin of the ASL-STEM Forum.  It was developed by researchers at the University of Washington, not Gallaudet University.  Researchers at Gallaudet and the National Institute for the Deaf work with the University of Washington to provide content and help the forum grow.

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Republicans Balk at Obama’s Short-Term Stimulus

WASHINGTON — Republicans and Democrats are struggling to find common ground on a long-term debt deal. But as economic growth has weakened this quarter, they are at odds over what the flagging recovery needs in the immediate future, too.

The Obama administration is arguing that the sluggish economy requires a shot in the arm, and it included tens of billions of dollars of little-noticed stimulus measures in its much-noticed proposal to Congressional leaders last week. But Republicans have countered that the country cannot afford to widen the deficit further, and have balked at including the measures in any eventual deal.

The stimulus measures in the White House’s debt proposal stem from President Obama’s long-since-scuttled American Jobs Act proposal, and include a continuation of emergency support for long-term unemployed workers, an extension of the payroll tax cut, billions in infrastructure investment and a mortgage-refinancing proposal.

“We have a very good plan, a very good mix of tax reforms” and savings, said Timothy F. Geithner, the Treasury secretary, on ABC News last weekend. “We can create some room to invest in things that make America stronger, like rebuilding America’s infrastructure.”

But in his counteroffer, made on Monday, House Speaker John A. Boehner of Ohio did not mention any such measures. Republican aides said that securing stimulus was not the main priority given concerns about the country’s fiscal state, and they appeared to be holding back on supporting any stimulus measures to bolster their bargaining position.

“The president is asking for $1.6 trillion worth of new revenue over 10 years, twice as much as he has been asking for in public,” Mr. Boehner said on “Fox News Sunday.” “He has stimulus spending in here that exceeded the amount of new cuts that he was willing to consider. It was not a serious offer.”

As the debate rages in Washington, data has shown the recovery once again sputtering, with the underlying rate of growth too slow to bring down the unemployment rate by much and some of the economic momentum gained in the fall dissipating in the winter.

The weakness comes from the manufacturing and exports slowdown, disruptions from Hurricane Sandy and sluggish underlying wage and spending growth. The storm hit the economic juggernauts of New Jersey and New York hard, pushing down work and wages. On top of that, consumers and businesses might be holding back out of concern for the tax increases and spending cuts scheduled to take place at the first of the year unless Congress and the administration come to some agreement.

In recent weeks, many forecasters have slashed their estimates of growth in the fourth quarter. Macroeconomic Advisers, for instance, estimates the economy is expanding at only a 0.8 percent annual pace, down from 2.8 percent in the third quarter.

“It’s a pretty dramatic slowdown,” said Joel Prakken, the chairman of Macroeconomic Advisers, the St. Louis-based forecasting firm. “There’s weak demand, which just does not portend well for the coming quarters,” he said.

RBC Capital Markets put the current pace of growth at just a 0.2 percent annual rate. The chance of seeing “a negative sign in front of fourth-quarter gross domestic product is nontrivial, to say the least,” Tom Porcelli, chief United States economist at RBC Capital Markets, wrote in a note to clients last week.

If Congress and the Obama administration are able to agree on a budget deal, economists expect that economic growth will pick up in 2013. Stock markets might cheer, businesses might feel more confident about hiring workers and signing contracts and investors might feel more comfortable investing if Congress struck a deal.

The turnaround in the housing market, rising auto sales and higher consumer confidence all bode well, they note. Refinancing — supported by the Federal Reserve’s effort to buy mortgage-backed securities — would also flush more money into households.

Much of the current slowdown might be a result of temporary factors that might fade away, like fluctuations in how factories stock their inventories or the lingering effects of Hurricane Sandy.

Still, recent economic data has come in surprisingly weak. On Monday, the Institute for Supply Management reported that the manufacturing sector contracted in November, with an index of purchasing activity falling to the lowest level since mid-2009.

The report said manufacturers expressed “concern over how and when the fiscal cliff issue will be resolved” as well as a slowdown in demand.

Over all, unemployment remains high, and wage growth weak. Global growth has gone through a slowdown as well. It all adds up to a United States recovery that might remain vulnerable to shocks — like the Midwestern drought that slashed agricultural production this year, or the Japanese tsunami that depressed exports in 2011, or the long-simmering European debt crisis that has spooked financial markets — for years to come.

Economists remain nervous about the combination of the already weak recovery and the prospect of the tax increases and spending cuts — with billions of dollars of fiscal contraction likely to take place even if the White House and Congress reach a deal.

“We are worried about going too fast, too quick on the cuts side,” said former Senator Pete V. Domenici, Republican of New Mexico, on Monday at a meeting with reporters at the Bipartisan Policy Center. He was presenting a plan for a deficit reduction framework along with Alice M. Rivlin, the budget director under President Bill Clinton.

Ms. Rivlin added, “We don’t need an austerity budget.” Indeed, the two budget experts proposed including a one-year income tax rebate to give the recovery some breathing room.

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Talk to The Times: Questions for Pete Wells, Restaurant Critic

Pete Wells, the chief restaurant critic of The New York Times, will answer selected readers’ questions Monday and Tuesday.

Mr. Wells was named the restaurant critic in November 2011. He was previously the editor of The Times’s Dining section since 2006. Before he joined The Times, Mr. Wells wrote a column for Food & Wine and was an editor at Details magazine. He has received five James Beard Foundation Awards for writing about eating and drinking.

Submit your questions for Mr. Wells.

You can ask questions via Twitter with the hash tag #TalktoNYT. Mr. Wells’s answers will begin appearing after 3 p.m. Eastern time on Monday.

Some of Mr. Wells’s recent reviews include Dirt Candy, a vegetarian restaurant in the East Village , and Guy’s American Kitchen & Bar in Times Square.

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Nokia Siemens to sell optical networks unit

FRANKFURT (Reuters) - Mobile telecoms equipment joint venture Nokia Siemens Networks, which is focusing on its core business, is to sell its optical fiber unit to Marlin Equity Partners for an undisclosed sum.

Up to 1,900 employees, mainly in Germany and Portugal, will be transferred to the new company, NSN said on Monday.

The company, owned by Nokia and Siemens, has sold a number of product lines since it last year announced plans to divest non-core assets and cut 17,000 jobs, nearly a quarter of its total workforce.

Nordea Markets analyst Sami Sarkamies said he expected more divestments after the optical unit deal. This disposal was a small surprise, he said, because NSN needed some optical technology - where data is transmitted by pulses of light - for its main mobile broadband business.

The move may hint the company is preparing itself for further consolidation in the sector by cutting overlaps with other players, Sarkamies said.

The telecom equipment market is going through rough times with stiff competition. French Alcatel-Lucent is also cutting costs.

($1 = 0.7689 euro)

(Reporting by Harro ten Wold; Editing by Greg Mahlich and Dan Lalor)

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Palace says Duchess of Cambridge expecting a baby

LONDON (AP) — Get the nursery ready: Prince William and his wife Kate are expecting their first child.

St. James's Palace announced the pregnancy Monday, saying that the Duchess of Cambridge — formerly known as Kate Middleton — has a severe form of morning sickness and is currently in a London hospital. William is at his wife's side.

The palace said since the pregnancy is in its "very early stages," the 30-year-old duchess is expected to stay in the hospital for several days and will require a period of rest afterward.

It would not say how far along she is, only that she has not yet reached the 12-week mark.

News of the pregnancy drew congratulations from across the world, with the hashtag "royalbaby" trending globally on Twitter.

Not only are the attractive young couple popular — with William's easy common touch reminding many of his mother, the late Princess Diana — but their child is expected to play an important role in British national life for decades to come.

William is second in line to the throne after his father, Prince Charles, so the couple's first child would normally eventually become a monarch.

In recent days, Middleton has kept up her royal appearances — recently playing field hockey with schoolchildren at her former school.

The confirmation of her pregnancy caps a jam-packed year of highs and lows for the young royals, who were married in a lavish ceremony at Westminster Abbey last year.

They have traveled the world extensively as part of Queen Elizabeth II's Diamond Jubilee celebrations and weathered the embarrassment of a nude photos scandal, after a tabloid published topless images of the duchess.

Joe Little, managing editor of Majesty magazine, said the news bookended a year that saw the royal family riding high in popular esteem after celebrations of Queen Elizabeth II's 60 years on the throne.

"We're riding on a royal high at the moment at the end of the Diamond Jubilee year," he said. "People enjoyed the royal romance last year and now there's this. It's just a good news story amid all the doom and gloom."

Speculation about when the couple would start a family has been rife since their wedding.

William's mother — the late Princess Diana — got pregnant just four months after her wedding in 1981. Diana reportedly suffered from morning sickness for months and complained of constant media attention.

"The whole world is watching my stomach," Diana once said.

American tabloid speculation of the pregnancy has been rampant for months. One newspaper even cited anonymous sources talking about Kate's hormone levels. Others have focused on the first signs of the royal bump.

The palace said the royal family was "delighted" by the news, while British Prime Minister David Cameron wrote on Twitter that the royals "will make wonderful parents."

Whether boy or girl, the child will be next in line behind William in the line of succession to the throne, Cabinet Office officials have said.

Leaders of Britain and the 15 former colonies that have the monarch as their head of state agreed in 2011 to new rules which give females equal status with males in the order of succession.

Although none of the nations had legislated to make the change as of September 2012, the British Cabinet Office confirmed that this is now the de-facto rule.

On the couple's recent tour of Malaysia, Singapore, the Solomon Islands and Tuvalu in September, William reportedly said he hoped he and Kate would have two children.

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Associated Press writers Jill Lawless and Paisley Dodds contributed to this report.

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Call That Kept Nursing Home Patients in Sandy’s Path

Chang W. Lee/The New York Times

Workers were shocked that nursing and adult homes in areas like Rockaway Park, Queens, weren’t evacuated.

Hurricane Sandy was swirling northward, four days before landfall, and at the Sea Crest Health Care Center, a nursing home overlooking the Coney Island Boardwalk in Brooklyn, workers were gathering medicines and other supplies as they prepared to evacuate.

Then the call came from health officials: Mayor Michael R. Bloomberg, acting on the advice of his aides and those of Gov. Andrew M. Cuomo, recommended that nursing homes and adult homes stay put. The 305 residents would ride out the storm.

The same advisory also took administrators by surprise at the Ocean Promenade nursing home, which faces the Atlantic Ocean in Queens. They canceled plans to move 105 residents to safety.

“No one gets why we weren’t evacuated,” said a worker there, Yisroel Tabi. “We wouldn’t have exposed ourselves to dealing with that situation.”

The recommendation that thousands of elderly, disabled and mentally ill residents remain in more than 40 nursing homes and adult homes in flood-prone areas of New York City had calamitous consequences.

At least 29 facilities in Queens and Brooklyn were severely flooded. Generators failed or were absent. Buildings were plunged into a cold, wet darkness, with no access to power, water, heat and food.

While no immediate deaths were reported, it took at least three days for the Fire Department, the National Guard and ambulance crews from around the country to rescue over 4,000 nursing home and 1,500 adult home residents. Without working elevators, many had to be carried down slippery stairwells.

“I was shocked,” said Greg Levow, who works for an ambulance service and helped rescue residents at Queens. “I couldn’t understand why they were there in the first place.”

Many sat for hours in ambulances and buses before being transported to safety through sand drifts and debris-filled floodwaters. They went to crowded shelters and nursing homes as far away as Albany, where for days, they often lacked medical charts and medications. Families struggled to locate relatives.

The decision not to empty the nursing homes and adult homes in the mandatory evacuation area was one of the most questionable by the authorities during Hurricane Sandy. And an investigation by The New York Times found that the impact was worsened by missteps that officials made in not ensuring that these facilities could protect residents.

They did not require that nursing homes maintain backup generators that could withstand flooding. They did not ensure that health care administrators could adequately communicate with government agencies during and after a storm. And they discounted the more severe of the early predictions about Hurricane Sandy’s surge.

The Times’s investigation was based on interviews with officials, health care administrators, doctors, nurses, ambulance medics, residents, family members and disaster experts. It included a review of internal State Health Department status reports. The findings revealed the striking vulnerability of the city’s nursing and adult homes.

On Sunday, Oct. 28, the day before Hurricane Sandy arrived, Mr. Bloomberg ordered a mandatory evacuation in Zone A, the low-lying neighborhoods of the city. But by that point, Mr. Bloomberg, relying on the advice of the city and state health commissioners, had already determined that people in nursing homes and adult homes should not leave, officials said.

The mayor’s recommendations that health care facilities not evacuate startled residents of Surf Manor adult home in Coney Island, said one of them, Norman Bloomfield. He recalled that another resident exclaimed, “What about us! Why’s he telling us to stay?”

The commissioners made the recommendation to Mr. Bloomberg and Mr. Cuomo because they said they believed that the inherent risks of transporting the residents outweighed the potential dangers from the storm.

In interviews, senior Bloomberg and Cuomo aides did not express regret for keeping the residents in place.

“I would defend all the decisions and the actions” by the health authorities involving the storm, said Linda I. Gibbs, a deputy mayor. “I feel like I’m describing something that was a remarkable, lifesaving event.”

Dr. Nirav R. Shah, the state health commissioner, who regulates nursing homes, said: “I’m not even thinking of second-guessing the decisions.”

Still, officials in New Jersey and in Nassau County adopted a different policy, evacuating nursing homes in coastal areas well before the storm.

Contradictory Forecasts

The city’s experience with Tropical Storm Irene last year weighed heavily on state and city health officials and contributed to their underestimating the impact of Hurricane Sandy, according to records and interviews.

Before Tropical Storm Irene, the officials ordered nursing homes and adult homes to evacuate. The storm caused relatively minor damage, but the evacuation led to millions of dollars in health care, transportation, housing and other costs, and took a toll on residents.

As a result, when Hurricane Sandy loomed, the officials were acutely aware that they could come under criticism if they ordered another evacuation that proved unnecessary.

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