Exclusive: Google to replace M&A chief

SAN FRANCISCO (Reuters) - Google Inc is replacing the head of its in-house mergers and acquisitions group, David Lawee, with one of its top lawyers, according to a person familiar with the matter.

Don Harrison, a high-ranking lawyer at Google, will replace Lawee as head of the Internet search company's corporate development group, which oversees mergers and acquisitions, said the source, who spoke anonymously because he was not authorized to speak publicly.

Google is also planning to create a new late-stage investment group that Lawee will oversee, the source said.

Google declined to comment. Lawee and Harrison could not immediately be reached for comment.

One of the Internet industry's most prolific acquirers, Google has struck more than 160 deals to acquire companies and assets since 2010, according to regulatory filings. Many of Google's most popular products, including its online maps and Android mobile software, were created by companies or are based on technology that Google acquired.

Harrison, Google's deputy general counsel, will head up the M&A group at a time when the company is still in the process of integrating its largest acquisition, the $12.5 billion purchase of smartphone maker Motorola Mobility, which closed in May.

And he takes over at a time when the Internet search giant faces heightened regulatory scrutiny, with the U.S. Federal Trade Commission and the European Commission conducting antitrust investigations into Google's business practices. Several recent Google acquisitions have undergone months of regulatory review before receiving approval.

As deputy general counsel, Harrison has been deeply involved in the company's regulatory issues and many of its acquisitions. He joined Google more than five years ago and has completed more than 70 deals at the company, according to biographical information on the Google Ventures website.

Harrison is an adviser to Google Ventures, the company's nearly four-year old venture division which provides funding for start-up companies.

While most of Google's acquisitions are small and mid-sized deals that do not meet the threshold for disclosure of financial terms, Google has a massive war chest of $45.7 billion in cash and marketable securities to fund acquisitions.

Lawee, who took over the M&A group in 2008, has had hits and misses during his tenure. Google shut down social media company Slide one year after acquiring it for $179 million, for example.

The planned late-stage investment group has not been finalized, the source said. The fund might operate separately from Google Ventures, according to the source.

"Think of it as a private equity fund inside of Google," the source said.

The company recently said it would increase the cash it allocates to Google Ventures to $300 million a year, up from $200 million, potentially helping it invest in later-stage financing rounds.

Google finished Friday's regular trading session down 1 percent, or $6.92, at $684.21.

(Reporting By Alexei Oreskovic; editing by Carol Bishopric and Jim Loney)

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'Skyfall,' 'Guardians' duel for box-office win

LOS ANGELES (AP) — James Bond is in a box-office photo finish with Santa Claus and the Easter Bunny over what looks to be the last slow weekend of the holidays.

According to studio estimates Sunday, Sony's Bond tale "Skyfall" took in $11 million to move back to No. 1 in its fifth weekend.

That put it narrowly ahead of Paramount's "Rise of the Guardians," the animated adventure of Santa, the Easter Bunny and other mythological heroes that pulled in $10.5 million.

The two movies inched ahead of Summit Entertainment's "The Twilight Saga: Breaking Dawn — Part 2," which had been tops for three-straight weekends. The "Twilight" finale earned $9.2 million, slipping into a tight race for No. 3 with Disney's "Lincoln," which was close behind with $9.1 million.

The top movies were bunched up so closely that rankings could change once final weekend revenues are released Monday.

The weekend's only new wide release, Gerard Butler's romantic comedy "Playing for Keeps," flopped with $6 million, coming in at No. 6.

"Skyfall" raised its domestic total to $261.6 million and added $20.3 million overseas to bring its international income to $656.6 million. At $918 million worldwide, "Skyfall" has the best cash haul ever for the Bond franchise and surpassed "Spider-Man 3" at $890 million to become Sony's top-grossing hit.

The "Twilight" finale also is a franchise record-breaker, surpassing the $710 million worldwide haul of last year's "Breaking Dawn — Part 1." The finale's domestic total now stands at $268.7 million.

It was another traditionally quiet post-Thanksgiving weekend, with big November releases continuing to dominate in the lull before a pre-Christmas onslaught of movies.

The box office is expected to soar next weekend with the arrival of part one of "The Hobbit," Peter Jackson's "The Lord of the Rings" prelude. After that comes a steady rush of action, comedy and drama through year's end, including Tom Cruise's "Jack Reacher," Quentin Tarantino and Jamie Foxx's "Django Unchained," Seth Rogen's "The Guilt Trip" and Hugh Jackman and Russell Crowe's "Les Miserables."

"The last couple of weeks of the year are some of the strongest every year," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com. "We are on the cusp of some really huge box office. There's a lot of money still left in the year despite this slow period right now."

Hollywood's domestic revenues have topped $10 billion so far this year, with the industry expected to finish 2012 ahead of the all-time high of $10.6 billion set in 2009.

Trashed savagely by critics, FilmDistrict's "Playing for Keeps" stars Butler as a washed-up soccer star trying to reconnect with his ex-wife (Jessica Biel) and young son. The all-star cast includes Catherine Zeta-Jones and Uma Thurman as soccer moms with the hots for Butler.

In limited release, Bill Murray's Franklin Roosevelt drama "Hyde Park on Hudson" opened solidly with $83,280 in four theaters, averaging a healthy $20,820 a cinema. By comparison, "Playing for Keeps" averaged $2,115 in 2,837 theaters.

Released by Focus Features, "Hyde Park on Hudson" stars Murray as Roosevelt, whose intimate relations with a distant cousin (Laura Linney) become both a source of strength and distraction as the president plays host to the king and queen of England on the eve of World War II.

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.

1. "Skyfall," $11 million ($20.3 million).

2. "Rise of the Guardians," $10.5 million ($26 million international).

3. "The Twilight Saga: Breaking Dawn — Part 2," $9.2 million.

4. "Lincoln," $9.1 million.

5. "Life of Pi," $8.3 million.

6. "Playing for Keeps," $6 million.

7. "Wreck-It Ralph," $4.9 million ($5.8 million international).

8. "Red Dawn," $4.3 million.

9. "Flight," $3.1 million.

10. "Killing Them Softly," $2.7 million.

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Online:

http://www.hollywood.com

http://www.rentrak.com

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Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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New Taxes to Take Effect to Fund Health Care Law

WASHINGTON — For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.

The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.

Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.

To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly.

The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law.

Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold.

Since the creation of Social Security in the 1930s, payroll taxes have been levied on the wages of each worker as an individual. The new Medicare payroll is different. It will be imposed on the combined earnings of a married couple.

Employers are required to withhold Social Security and Medicare payroll taxes from wages paid to employees. But employers do not necessarily know how much a worker’s spouse earns and may not withhold enough to cover a couple’s Medicare tax liability. Indeed, the new rules say employers may disregard a spouse’s earnings in calculating how much to withhold.

Workers may thus owe more than the amounts withheld by their employers and may have to make up the difference when they file tax returns in April 2014. If they expect to owe additional tax, the government says, they should make estimated tax payments, starting in April 2013, or ask their employers to increase the amount withheld from each paycheck.

In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.” However, the law does not provide for the money to be deposited in a specific trust fund. It is added to the government’s general tax revenues and can be used for education, law enforcement, farm subsidies or other purposes.

Donald B. Marron Jr., the director of the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, said the burden of this tax would be borne by the most affluent taxpayers, with about 85 percent of the revenue coming from 1 percent of taxpayers. By contrast, the biggest potential beneficiaries of the law include people with modest incomes who will receive Medicaid coverage or federal subsidies to buy private insurance.

Wealthy people and their tax advisers are already looking for ways to minimize the impact of the investment tax — for example, by selling stocks and bonds this year to avoid the higher tax rates in 2013.

The new 3.8 percent tax applies to the net investment income of certain high-income taxpayers, those with modified adjusted gross incomes above $200,000 for single taxpayers and $250,000 for couples filing jointly.

David J. Kautter, the director of the Kogod Tax Center at American University, offered this example. In 2013, John earns $160,000, and his wife, Jane, earns $200,000. They have some investments, earn $5,000 in dividends and sell some long-held stock for a gain of $40,000, so their investment income is $45,000. They owe 3.8 percent of that amount, or $1,710, in the new investment tax. And they owe $990 in additional payroll tax.

The new tax on unearned income would come on top of other tax increases that might occur automatically next year if President Obama and Congress cannot reach an agreement in talks on the federal deficit and debt. If Congress does nothing, the tax rate on long-term capital gains, now 15 percent, will rise to 20 percent in January. Dividends will be treated as ordinary income and taxed at a maximum rate of 39.6 percent, up from the current 15 percent rate for most dividends.

Under another provision of the health care law, consumers may find it more difficult to obtain a tax break for medical expenses.

Taxpayers now can take an itemized deduction for unreimbursed medical expenses, to the extent that they exceed 7.5 percent of adjusted gross income. The health care law will increase the threshold for most taxpayers to 10 percent next year. The increase is delayed to 2017 for people 65 and older.

In addition, workers face a new $2,500 limit on the amount they can contribute to flexible spending accounts used to pay medical expenses. Such accounts can benefit workers by allowing them to pay out-of-pocket expenses with pretax money.

Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.

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Changes to Agriculture Highlight Cuba’s Problems

HAVANA — Cuba’s liveliest experiment with capitalism unfolds every night in a dirt lot on the edge of the capital, where Truman-era trucks lugging fresh produce meet up with hundreds of buyers on creaking bicycle carts clutching wads of cash.

“This place, it feeds all of Havana,” said Misael Toledo, 37, who owns three small food stores in the city. “Before, you could only buy or sell in the markets of Fidel.”

The agriculture exchange, which sprang up last year after the Cuban government legalized a broader range of small businesses, is a vivid sign of both how much the country has changed, and of all the political and practical limitations that continue to hold it back.

President Raúl Castro has made agriculture priority No. 1 in his attempt to remake the country. He used his first major presidential address in 2007 to zero in on farming, describing weeds conquering fallow fields and the need to ensure that “anyone who wants can drink a glass of milk.”

No other industry has seen as much liberalization, with a steady rollout of incentives for farmers. And Mr. Castro has been explicit about his reasoning: increasing efficiency and food production to replace imports that cost Cuba hundreds of millions of dollars a year is a matter “of national security.”

Yet at this point, by most measures, the project has failed. Because of waste, poor management, policy constraints, transportation limits, theft and other problems, overall efficiency has dropped: many Cubans are actually seeing less food at private markets. That is the case despite an increase in the number of farmers and production gains for certain items. A recent study from the University of Havana showed that market prices jumped by nearly 20 percent in 2011 alone. And food imports increased to an estimated $1.7 billion last year, up from $1.4 billion in 2006.

“It’s the first instance of Cuba’s leader not being able to get done what he said he would,” said Jorge I. Domínguez, vice provost for international affairs at Harvard, who left Cuba as a boy. “The published statistical results are really very discouraging.”

A major cause: poor transportation, as trucks are in short supply, and the aging ones that exist often break down.

In 2009, hundreds of tons of tomatoes, part of a bumper crop that year, rotted because of a lack of transportation by the government agency charged with bringing food to processing centers.

“It’s worse when it rains,” said Javier González, 27, a farmer in Artemisa Province who described often seeing crops wilt and rot because they were not picked up.

Behind him were the 33 fertile, rent-free acres he had been granted as part of a program Mr. Castro introduced in 2008 to encourage rural residents to work the land. After clearing it himself and planting a variety of crops, Mr. Gonzalez said, he was doing relatively well and earned more last year than his father, who is a doctor, did.

But Cuba’s inefficiencies gnawed at him. Smart, strong, and ambitious, he had expansion plans in mind, even as in his hand he held a wrench. He was repairing a tractor part meant to be grading land. It was broken. Again.

The 1980s Soviet model tractor he bought from another farmer was as about good as it gets in Cuba. The Cuban government maintains a monopoly on selling anything new, and there simply is not enough of anything — fertilizer, or sometimes even machetes — to go around.

Government economists are aware of the problem. “If you give people land and no resources, it doesn’t matter what happens on the land,” said Joaquin Infante of the Havana-based Cuban National Association of Economists.

But Mr. Castro has refused to allow what many farmers and experts see as an obvious solution to the shortages of transportation and equipment: Let people import supplies on their own. “It’s about control,” said Philip Peters, a Cuba analyst with the Lexington Institute, a Virginia-based research group.

Other analysts agree, noting that though the agricultural reforms have gone farther than other changes — like those that allow for self-employment — they remain constrained by politics.

“The government is not ready to let go,” said Ted Henken, a Latin American studies professor at Baruch College. “They are sending the message that they want to let go, or are trying to let go, but what they have is still a mechanism of control.”

For many farmers, that explains why land leases last for 10 years with a chance to renew, not indefinitely or the 99 years offered to foreign developers. It is also why many farmers say they will not build homes on the land they lease, despite a concession this year to allow doing so.

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Obama Team Outlines Four Corporate Donor Packages for Inauguration

WASHINGTON — President Obama’s finance team is offering corporations and other institutions that contribute $1 million exclusive access to an array of inaugural festivities, including tickets to a “benefactors reception,” a children’s concert, a candlelight celebration at the National Building Museum, two reserved parade bleacher seats and four tickets to the president’s official inaugural ball.

The offerings are detailed in an online inaugural fund-raising solicitation provided to The New York Times by an Obama fund-raiser; the document describes four packages that Mr. Obama’s finance team can sell, with differing levels of access depending on the level of contribution. Individuals who contribute $250,000 will receive the same package as million-dollar “institutional donors,” which could include corporations, philanthropies, foundations and unions.

The financing arrangements are a departure from Mr. Obama’s policy in 2009, when he refused corporate donations altogether and capped individual contributions at $50,000. As in 2009, Mr. Obama will not be accepting money from lobbyists or political action committees.

While taxpayers pay for inaugural events at the Capitol — the swearing-in ceremony and inaugural luncheon — the president must raise money from private donors for everything else, including the inaugural parade, ball and concerts. In 2009, Mr. Obama raised $53 million.

The online solicitation, sent to donors by e-mail on Friday, described the different inaugural packages, each named for a former president: Washington ($1 million from institutions and $250,000 from individuals); Adams ($500,000 from institutions and $150,000 from individuals); Jefferson ($250,000 from institutions and $75,000 from individuals); and Madison ($100,000 from institutions and $10,000 from individuals).

Financing arrangements like these are typical for presidential inaugurals; to help pay for President George W. Bush’s 2005 inaugural, dozens of companies, including Home Depot and Bank of America, contributed $250,000 apiece.

But Mr. Obama’s decision has drawn sharp criticism from good-government advocates, who accuse him of abandoning his pledge to keep big money out of politics.

John Wonderlich, policy director of the Sunlight Foundation, which advocates for openness in government, wrote on the group’s blog that the decision “prioritizes a lavish celebration over the integrity of the office,” and that Mr. Obama was “turning away from a principled approach to money in politics.”

The president’s inaugural planners, however, have defended the decision, saying that museums, philanthropic organizations and service groups, like the Red Cross, all accept corporate money. And with Democratic donors feeling tapped out from an expensive presidential campaign, the planners concluded they needed to expand their fund-raising methods.

The 2013 inaugural festivities will be smaller in scope than the huge celebration of 2009, which drew an estimated 1.8 million people to the capital. This time, there will be only three official inaugural balls, as compared with 10 in 2009.

And because Jan. 20, the constitutionally mandated date for the presidential swearing-in, falls on a Sunday this year, Mr. Obama will take his oath in private at the White House, and the public swearing-in ceremony and other events will be held on Monday, Jan. 21.

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Exclusive: Google to replace M&A chief

SAN FRANCISCO (Reuters) - Google Inc is replacing the head of its in-house mergers and acquisitions group, David Lawee, with one of its top lawyers, according to a person familiar with the matter.

Don Harrison, a high-ranking lawyer at Google, will replace Lawee as head of the Internet search company's corporate development group, which oversees mergers and acquisitions, said the source, who spoke anonymously because he was not authorized to speak publicly.

Google is also planning to create a new late-stage investment group that Lawee will oversee, the source said.

Google declined to comment. Lawee and Harrison could not immediately be reached for comment.

One of the Internet industry's most prolific acquirers, Google has struck more than 160 deals to acquire companies and assets since 2010, according to regulatory filings. Many of Google's most popular products, including its online maps and Android mobile software, were created by companies or are based on technology that Google acquired.

Harrison, Google's deputy general counsel, will head up the M&A group at a time when the company is still in the process of integrating its largest acquisition, the $12.5 billion purchase of smartphone maker Motorola Mobility, which closed in May.

And he takes over at a time when the Internet search giant faces heightened regulatory scrutiny, with the U.S. Federal Trade Commission and the European Commission conducting antitrust investigations into Google's business practices. Several recent Google acquisitions have undergone months of regulatory review before receiving approval.

As deputy general counsel, Harrison has been deeply involved in the company's regulatory issues and many of its acquisitions. He joined Google more than five years ago and has completed more than 70 deals at the company, according to biographical information on the Google Ventures website.

Harrison is an adviser to Google Ventures, the company's nearly four-year old venture division which provides funding for start-up companies.

While most of Google's acquisitions are small and mid-sized deals that do not meet the threshold for disclosure of financial terms, Google has a massive war chest of $45.7 billion in cash and marketable securities to fund acquisitions.

Lawee, who took over the M&A group in 2008, has had hits and misses during his tenure. Google shut down social media company Slide one year after acquiring it for $179 million, for example.

The planned late-stage investment group has not been finalized, the source said. The fund might operate separately from Google Ventures, according to the source.

"Think of it as a private equity fund inside of Google," the source said.

The company recently said it would increase the cash it allocates to Google Ventures to $300 million a year, up from $200 million, potentially helping it invest in later-stage financing rounds.

Google finished Friday's regular trading session down 1 percent, or $6.92, at $684.21.

(Reporting By Alexei Oreskovic; editing by Carol Bishopric and Jim Loney)

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Rolling Stones hit NY for 50th anniversary gig

NEW YORK (AP) — "Time Waits for No One," the Rolling Stones sang in 1974, but lately it's seemed like that grizzled quartet does indeed have some sort of exemption from the ravages of time.

At an average age of 68-plus years, the British rockers are clearly in fighting form, sounding tight, focused and truly ready for the spotlight at a rapturously received pair of London concerts last month.

On Saturday, Mick Jagger, Keith Richards, Ronnie Wood and Charlie Watts hit New York for the first of three U.S. shows on their "50 and Counting" mini-tour, marking a mind-boggling half-century since the band first began playing its unique brand of blues-tinged rock.

And the three shows — Saturday's at the new Barclays Center in Brooklyn, then two in Newark, N.J., on Dec. 13 and 15 — aren't the only big dates on the agenda. Next week the Stones join a veritable who's who of British rock royalty and U.S. superstars at the blockbuster 12-12-12 Sandy benefit concert at Madison Square Garden. Also scheduled to perform: Paul McCartney, the Who, Eric Clapton, Bruce Springsteen & The E Street Band, Alicia Keys, Kanye West, Eddie Vedder, Billy Joel, Roger Waters and Chris Martin.

The Stones' three U.S. shows promise to have their own special guests, too. Mary J. Blige will be at the Brooklyn gig, as well as guitarist Gary Clark Jr., the band has announced. (Blige performed a searing "Gimme Shelter" with frontman Jagger in London.) Rumors are swirling of huge names at the Dec. 15 show, which also will be on pay-per-view.

In a flurry of anniversary activity, the band also released a hits compilation last month with two new songs, "Doom and Gloom" and "One More Shot," and HBO premiered a new documentary on their formative years, "Crossfire Hurricane."

The Stones formed in London in 1962 to play Chicago blues, led at the time by the late Brian Jones and pianist Ian Stewart, along with Jagger and Richards, who'd met on a train platform a year earlier. Bassist Bill Wyman and drummer Charlie Watts were quick additions.

Wyman, who left the band in 1992, was a guest at the London shows last month, as was Mick Taylor, the celebrated former Stones guitarist who left in 1974 — to be replaced by Wood, the newest Stone and the youngster at 65.

The inevitable questions have been swirling about the next step for the Stones: another huge global tour, on the scale of their last one, "A Bigger Bang," which earned more than $550 million between 2005 and 2007? Something a bit smaller? Or is this mini-tour, in the words of their new song, really "One Last Shot"?

The Stones won't say. But in an interview last month, they made clear they felt the 50th anniversary was something to be marked.

"I thought it would be kind of churlish not to do something," Jagger told The Associated Press. "Otherwise, the BBC would have done a rather dull film about the Rolling Stones."

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Associated Press writer David Bauder contributed to this report.

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Job Growth Is Steady Despite Storm and Fiscal Impasse

A Lower Than Expected Jobless Rate:
The U.S. Labor Department reports a sharper increase in job creation than economists had been expecting.

Shaking off the effects of Hurricane Sandy and the looming fiscal impasse in Washington, the economy created 146,000 jobs in November, well above the level economists had been expecting.

Source: Bureau of Labor Statistics

The report released Friday by the Labor Department also showed the unemployment rate fell to 7.7 percent, the lowest level in four years. But the drop came largely from a decline in the number of people seeking work and counted as officially unemployed.

Among specific industries, the retail sector was especially healthy, adding 53,000 jobs as the holiday shopping season approached. In the last three months, retail employment has increased by 140,000.

One notable point of weakness was the manufacturing sector, which lost 7,000 jobs in the month. Demand from Europe and other overseas markets has weakened recently, while some manufacturing companies have held off on spending as political leaders square off in Washington over how to cut the deficit.

Highlighting just how vulnerable to shocks the economy remains, one widely followed index of consumer sentiment showed a marked drop in early December. The Thomson Reuters/University of Michigan’s index of consumer confidence, released Friday, fell to 74.5, down from 82.7 in November.

That was the lowest it has been since August – a decline that Bricklin Dwyer, an economist with BNP Paribas, attributed to the showdown in Washington over the budget.

“The deterioration in consumers’ future expectations was probably related to increased concerns relating to the political theater surrounding the ‘fiscal cliff’ negotiations,” he wrote in a report Friday.

The Labor Department revised job growth in previous months downward somewhat. October growth fell to 138,000 from an initial estimate 171,000, and September’s declined to 132,000 from 148,000. Average hourly earnings in November rose 0.2 percent, the report showed.

By the widest measure of joblessness, unemployment also eased slightly: after factoring in people looking for work as well as those forced to take part-time positions because full-time work wasn’t available, the total unemployed fell to 14.4 percent in November from 14.6 percent in October.

The report for November was relatively strong, economists said, and showed fewer effects from Hurricane Sandy that had been expected. In Friday’s announcement, the Bureau of Labor Statistics said the storm did “not substantively impact the national employment and unemployment estimates for November.”

Ethan Harris, co-head of global economics at Bank of America of Merrill Lynch, said, “It’s a pretty solid report. It’s consistent with a slow recovery in the job market.”

“It’s encouraging that with the fiscal cliff looming, the corporate sector seems willing to hire even with the worries about what’s going in Washington,” Mr. Harris said.

If the budget impasse can’t be resolved this month, however, it’s likely that jobs growth will weaken early next year, he added. “The fiscal cliff is a very dangerous game,” he said.

Indeed, other economists remained cautious about the jobs outlook.

“It’s not something to get too excited about,” said Nigel Gault, chief United States economist for IHS Global Insight. “The number is 146,000 and the average so far this year is 151,000. We’re pretty much in line with what we’ve been doing.”

Mr. Gault said Hurricane Sandy’s impact may have been seen in construction, where the number of jobs fell by 20,000, as well as in manufacturing.

The labor participation rate, which represents the proportion of the adult population that is either employed or actively looking for work, remains very low by historical standards.

At 63.6 percent in November, Mr. Gault said, it was just 0.1 percent above the low point for the current economic cycle, which was reached in August 2012.

“We’re not at the point in which the jobs market is strong enough to pull discouraged workers back into the labor market," he said.

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Italian tax police visit Facebook's Milan offices

MILAN (Reuters) - Italian police have been carrying out checks at the Milan offices of Facebook to assess whether it regularly declared its income in Italy, an investigative source and the U.S. company said on Friday.

Italian officials have stepped up their efforts to collect taxes in recent months and have already targeted other big corporate names such as Google to check whether they are paying their dues.

The investigative source said tax officials first went to the offices of Facebook in Milan nearly a month ago to collect documents.

"Facebook pays taxes in Italy as part of its business activity in the country and strictly complies with Italy's fiscal rules," Facebook said in an emailed statement.

"Facebook has fully cooperated with tax police during the investigation and intends to continue to do that."

Italian police opened a new tax probe into Google Italy last week, five years after an earlier investigation into transfer pricing.

Google has said it complies with the tax laws in every country in which it operates.

($1=0.7700 euros)

(Reporting by Emilio Parodi and Claudia Cristoferi, Writing by Antonella Ciancio; Editing by Greg Mahlich)

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Hospital: Nurse involved in Kate hoax call dies

LONDON (AP) — A nurse who fell victim to a prank telephone call seeking information about the pregnant Duchess of Cambridge has died, the London hospital where she worked reported Friday.

The King Edward VII hospital said nurse Jacintha Saldanha took the hoax call by two Australian radio disc jockeys who impersonated Queen Elizabeth II and Prince Charles early Tuesday to elicit private information on the duchess's condition. Saldanha later transferred the call to the nurse caring for the duchess, who is suffering from acute morning sickness. That second nurse spoke freely about her 30-year-old patient, one of the world's most photographed women.

Saldanha was found dead early Friday. Police say her death is unexplained.

"Our thoughts and deepest sympathies at this time are with her family and friends," said John Lofthouse, the hospital's chief executive, said in a statement. "Everyone is shocked by the loss of a much-loved and valued colleague."

St. James's Palace, which speaks for Prince William, the duchess' husband, also expressed sadness about the nurse's death, but insisted that it had not complained about the hoax.

"On the contrary, we offered our full and heartfelt support to the nurses involved and hospital staff at all times," the palace said in a statement.

The prank phone call took place early Tuesday and the two radio personalities apologized the following day.

A woman using the often-mimicked voice of Britain's monarch asked after the duchess' health. She was told by the second nurse who took the call from Saldanha that the duchess, the former Kate Middleton, "hasn't had any retching with me and she's been sleeping on and off."

The nurse went on to say the duchess had had an uneventful night, as another radio employee pretended to be a dog yapping in the background. The alleged queen and prince then talked about traveling to the London hospital to check in on the patient, who is married to the queen's grandson, Prince William.

The hospital said it supported Saldanha in the aftermath of the call and that its phone protocols were under review.

The Australian station 2DayFM placed the recording of the conversation on its website but later said it was sorry. Australian radio personalities Mel Greig and Michael Christian apologized for the hoax.

"We were very surprised that our call was put through. We thought we'd be hung up on as soon as they heard our terrible accents," they said in a joint statement with the station at the time. "We're very sorry if we've caused any issues and we're glad to hear that Kate is doing well."

However, the disc jockeys also described the call as the "easiest prank call ever made," and promoted it through the station's website and social media accounts.

The Sydney-based 2Day FM continued promote its prank call on air early Saturday morning. It described the hoax as "the prank call the world is talking about" before playing clips of news programs reporting on the original call.

Christian's Twitter account has since been taken down.

Officials from St. James's Palace have said the duchess is not yet 12 weeks pregnant. The child would be the first for her and Prince William and become third in line to the British throne, after Charles and William.

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Associated Press Writers Paisley Dodds and Cassandra Vinograd contributed to this story.

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