Seattle bankruptcy hearing to decide Tully's sale


SEATTLE (AP) — The auction for beleaguered coffee company Tully's will likely conclude Friday in federal bankruptcy court, with an ownership group led by actor Patrick Dempsey in position to take over the chain. But Starbucks isn't' out of the running.


Dempsey — dubbed "McDreamy" in the "Grey's Anatomy" hospital TV drama — claimed victory last week after an auction.


But a company that teamed up with Starbucks to bid for the Tully's chain filed an objection Wednesday. AgriNurture Inc. says it's still willing to proceed with its combined bid with Starbucks of about $10.6 million. The bid from Dempsey's company, Global Baristas LLC, was for $9.2 million.


Tully's has 47 shops in Washington and California with more than 500 employees. It filed for Chapter 11 bankruptcy protection in October.


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The New Old Age Blog: Taking a Zen Approach to Caregiving

You try to help your elderly father. Irritated and defensive, he snaps at you instead of going along with your suggestion. And you think “this is so unfair” and feel a rising tide of anger.

How to handle situations like this, which arise often and create so much angst for caregivers?

Jennifer Block finds the answer in what she calls “contemplative caregiving” — the application of Buddhist principles to caregiving and the subject of a year-long course that starts at the San Francisco Zen Center in a few weeks.

This approach aims to cultivate compassion, both for older people and the people they depend on, said Ms. Block, 49, a Buddhist chaplain and the course’s lead instructor. She’s also the former director of education at the Zen Hospice project in San Francisco and founder of the Beyond Measure School for Contemplative Care, which is helping develop a new, Zen-inspired senior living community in the area.

I caught up with Ms. Block recently, and what follows is an edited transcript of our conversation.

Let’s start with your experience. Have you been a caregiver?

My experience in caregiving is as a professional providing spiritual care to individuals and families when they are facing and coping with aging and sickness and loss and dying, particularly in hospital and hospice settings.

What kinds of challenges have you witnessed?

People are for the most part unprepared for caregiving. They’re either untrained or unable to trust their own instincts. They lack confidence as well as knowledge. By confidence, I mean understanding and accepting that we don’t know all the answers – what to do, how to fix things.

This past weekend, I was on the phone with a woman who’d brought her mom to live near her in assisted living. The mom had been to the hospital the day before. My conversation with the daughter was about helping her see the truth that her mother needed more care and that was going to change the daughter’s responsibilities and her life. And also, her mother was frail, elderly, and coming nearer to death.

That’s hard, isn’t it?

Yes, because we live in a death-denying society. Also, we live in a fast-paced, demanding world that says don’t sit still — do something. But people receiving care often need most of all for us to spend time with them. When we do that, their mortality and our grief and our helplessness becomes closer to us and more apparent.

How can contemplative caregiving help?

We teach people to cultivate a relationship with aging, sickness and dying. To turn toward it rather than turning away, and to pay close attention. Most people don’t want to do this.

A person needs training to face what is difficult in oneself and in others. There are spiritual muscles we need to develop, just like we develop physical muscles in a gym. Also, the mind needs to be trained to be responsive instead of reactive.

What does that mean?

Here’s an example. Let’s say you’re trying to help your mother, and she says something off-putting to you like “you’ve always been terrible at keeping house. It’s no wonder you lost my pajamas.”

The first thing is to notice your experience. To become aware of that feeling, almost like being slapped emotionally. To notice your chest tightening.

Then I tell people to take a deep breath. And say something to themselves like “soften” to address that tightness. That’s how you can stay facing something uncomfortable rather than turning away.

If I were in this position, I might say something to myself like “hello unhappiness” or “hello suffering” or “hello aging” to tether myself.

The second step would be curiosity about that experience. Like, wow, where do I feel that anger that rose up in me, or that fear? Oh, it’s in my chest. I’m going to feel that, stay with it, investigate it.

Why is that important?

Because as we investigate something we come to understand it. And, paradoxically, when we pay attention to pain it changes. It softens. It moves. It lessens. It deepens. And we get to know it and learn not to be afraid of it or change it or fix it but just come alongside of it.

Over hours, days, months, years, the mind and heart come to know pain. And the response to pain is compassion — the wish for the alleviation of pain.

Let’s go back to what mother said about your housekeeping and the pajamas. Maybe you leave the room for five minutes so you can pay attention to your reaction and remember your training. Then, you can go back in and have a response rather than a reaction. Maybe something like “Mom, I think you’re right. I may not be the world’s best housekeeper. I’m sorry I lost your pajamas. It seems like you’re having a pretty strong response to that, and I’d like to know why it matters so much to you. What’s happening with you today?”

Are other skills important?

Another skill is to become aware of how much we receive as well as give in caregiving. Caregiving can be really gratifying. It’s an expression of our values and identity: the way we want the world to be. So, I try to teach people how this role benefits them. Such as learning what it’s like to be old. Or having a close, intimate relationship with an older parent for the first time in decades. It isn’t necessarily pleasant or easy. But the alternative is missing someone’s final chapter, and that can be a real loss.

What will you do in your course?

We’ll teach the principles of contemplative care and discuss them. We’ll have homework, such as ‘Bring me three examples of someone you were caring for who was caring toward you in return.’ That’s one way of practicing attention. And people will train in meditation.

We’ll also explore our own relationship to aging, sickness, dying and loss. We’ll tell our stories: this is the situation I was in, this is where I felt myself shut down, this was the edge of my comfort or knowledge. And we’ll teach principles from Buddhism. Equanimity. Compassion. Deep inner connectedness.

What can people do on their own?

Mindfulness training is offered in almost every city. That’s one of the core components of this approach.

I think every caregiver needs to have their own caregiver — a therapist or a colleague or a friend, someone who is there for them and with whom they can unburden themselves. I think of caregiving as drawing water from a well. We need to make sure that we have whatever nurtures us, whatever supplies that well. And often, that’s connecting with others.

Are other groups doing this kind of work?

In New York City, the New York Zen Center for Contemplative Care educates the public and professionals about contemplative care. And in New Mexico, the Upaya Zen Center does similar work, much of it centered around death and dying.

People who want to read about this might want to look at a new book of essays, “The Arts of Contemplative Care: Pioneering Voices in Buddhist Chaplaincy and Pastoral Work” (Wisdom Publications, 2012).

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DealBook: Client Redemptions Loom for SAC Capital

12:46 p.m. | Updated

The hedge fund giant SAC Capital Advisors is steeling itself for a possible wave of withdrawal requests from clients amid the government’s intensifying scrutiny of its trading practices.

Investors have about a month to decide whether to pull out money from SAC, the $14 billion fund owned by the billionaire investor Steven A. Cohen.

While posting one of the best investment track records on Wall Street across two decades, SAC has attracted billions of dollars from pension funds, wealthy families and other money management firms. But since late November, when federal prosecutors brought its latest criminal insider trading charge against a former SAC employee — a case that it calls the most lucrative insider trading scheme ever uncovered — those clients are weighing whether continuing their relationship with the fund is worth the reputational risk.

The fund has a standard quarterly redemption deadline, and the next one will fall on Feb. 15. Already, several of SAC’s clients, including Lyxor Asset Management and Titan Advisors, have notified the fund that they intend to withdraw their money. Others, like Skybridge Capital, have told SAC they will continue to invest with the fund.

Questions remain about the intentions of several of SAC’s well-known clients, including Blackstone Group, one of the world’s largest and most influential allocators to hedge funds. Blackstone has about $550 million invested in SAC, making it one of the fund’s largest outside investors. A Blackstone spokesman declined to comment.

The fund has told its employees that it could face at least $1 billion of withdrawals, according to a report in The Wall Street Journal on Friday. A spokesman for SAC said it was “far too early to speculate about redemptions, and we do not expect redemptions to have a significant impact on our funds.”

Any withdrawals from clients would come after a year of decent performance for SAC. In 2012 the firm returned about 13 percent net of fees, which while slightly underperforming the Standard & Poor’s 500 stock market index, is superior to the results of the average hedge fund.

While a spate of redemptions can have a crippling effect on a hedge fund by forcing it to sell its holdings at unfavorable prices, SAC is more insulated than most of its competitors from the ill effects of client withdrawals. That is because of the $14 billion that SAC manages, only about 40 percent of that comes from outside clients. The rest — a fortune of about $8 billion — belongs to Mr. Cohen and his employees.

Also, SAC has protected itself with a stringent redemption policy. The fund’s clients can redeem only 25 percent of their investment each quarter. So, for example, if a client has $200 million invested with SAC, and asks for its money back by the Feb. 15 deadline, SAC would return $50 million every three months beginning in March. That way, SAC is protected from having a forced liquidation of its investment portfolio.

Still, an investor exodus can have a crippling effect on a hedge fund, often causing it to shut down. Last month, Diamondback Capital Management, another hedge fund that became ensnared in the government’s insider trading investigation, closed after its investors sought to pull out roughly one-quarter of the fund’s assets.

Diamondback’s management decided that the most prudent course of action was to wind down rather than reorganize the firm to manage the reduced amount of money.

Like Diamondback, SAC has become embroiled in the government’s broad crackdown on insider trading at hedge funds. At least seven former SAC traders and analysts have been tied to illegal trading while at the fund. And the Securities and Exchange Commission has warned SAC that it might filed a civil action against the fund for failing to properly supervise its employees.

Mr. Cohen has told his employees that he believes he and his fund have at all times acted appropriately, and that the fund has fully cooperated with the government’s investigation.

In recent weeks, SAC has gone on a charm offensive in an attempt to hold on to clients. The fund has told its investors that they would not be responsible for any penalties incurred as a result of any of the government’s legal inquiry. Instead, SAC has told them, Mr. Cohen and his management company would pick up the costs.

There have also been changes at the fund. SAC last week told its staff that it was closing its office in Chicago, which is home to about a dozen employees. Such a move is not unusual, as the fund has closed offices before, such as San Francisco, where it saw limited opportunities.

A spokesman said it didn’t make sense to have an office in Chicago. SAC has more than 1,000 employees – portfolio managers, analysts, traders, and support staff – in five offices across the globe, with its headquarters in Stamford, Conn.

Though Mr. Cohen has told his friends and employees that he remains committed to managing money for outside clients, he could decide to follow in the footsteps of several fellow billionaire hedge fund managers.

A number of star investors, having already amassed billions in personal wealth, have decided to get out of the business of managing other people’s money. In recent years, for example, both George Soros and his onetime protégé, Stanley Druckenmiller, returned money to clients and set up so-called family offices to manage their own fortunes.

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Minister Pulls Out of Inauguration After Outcry


WASHINGTON – The Christian minister selected by President Obama to deliver the benediction at his inaugural this month has withdrawn from the program amid a storm of controversy over remarks he made about homosexuality in a sermon in the mid-1990s, according to a source close to the inaugural committee.


The minister, the Rev. Louie Giglio, founder of the Passion Conferences, an Atlanta organization that brings college students together in prayer and worship, withdrew Thursday morning, a day after the sermon came to light.


In it, Mr. Giglio called on fellow Christians to fight the “aggressive agenda” of the gay-rights movement, and advocated “the healing power of Jesus” as “the only way out of a homosexual lifestyle” – a comment some gay-rights advocates interpreted as an endorsement of reparative, or so-called gay-to-straight conversion, therapy, as a supposed cure for homosexuality


An official with Mr. Obama’s Presidential Inaugural Committee said the committee, which operates separately from the White House, vetted Mr. Giglio. People familiar with internal discussions between administration and committee officials said the White House viewed the selection as a problem for Mr. Obama, and told the panel on Wednesday night to quickly fix it. By Thursday morning, Mr. Giglio said he had withdrawn without disavowing the comments.


“We were not aware of Pastor Giglio’s past comments at the time of his selection and they don’t reflect our desire to celebrate the strength and diversity of our country at this inaugural,” said Addie Whisenant, the spokeswoman for the Presidential Inaugural Committee. “Pastor Giglio was asked to deliver the benediction in large part for his leadership in combating human trafficking around the world. As we now work to select someone to deliver the benediction, we will ensure their beliefs reflect this administration’s vision of inclusion and acceptance for all Americans.”


The minister’s quick withdrawal highlights how sensitive the White House is to concerns over gay rights. It comes at a time when Mr. Obama’s candidate for defense secretary, Chuck Hagel, a former Nebraska senator, is under fire for comments he made about gay people in the 1990s; some activists said the administration could ill afford two controversies over gay rights at the same time.


“It was the right decision,” said Chad Griffin, president of the Human Rights Campaign, a Washington-based advocacy group. “Participants in the inaugural festivities should unite rather than divide. Choosing an affirming and fair-minded voice as his replacement would be in keeping with the tone the president wants to set for his inaugural.”


The Giglio controversy echoes a controversy over Mr. Obama’s 2009 inaugural, when he angered many gay people by selecting the Rev. Rick Warren, author of “The Purpose Driven Life" and an outspoken opponent of same-sex marriage, to deliver the benediction.


“I think this is actually a bigger deal than Rick Warren because this gentleman is in many ways much worse,” said Richard Socarides, who advised President Bill Clinton on gay issues. “Rick Warren was not a good choice but he is kind of in the mainstream of religious thinking, but this guy is really an outlier.”


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Lumia sales lift Nokia results, raise turnaround hopes


HELSINKI (Reuters) - Nokia said strong sales of Lumia smartphones helped its mobile phone business achieve underlying profitability in the fourth quarter, raising hopes the struggling handset maker may be past the worst.


The Finnish company, which has been losing market share to Samsung and Apple, said the better-than-expected result was also helped by cost cuts, a stronger-than-expected performance from its Nokia Siemens Networks unit and 50 million euros ($65.2 million) in patent royalties.


The surprise announcement lifted the shares to nine-month highs and eased pressure on Chief Executive Stephen Elop, who has been trying to prove his February 2011 decision to switch to Microsoft Windows software was the right one.


Elop was seen to be running out of time after saying that the transition would take two years. Success of the high-end Lumia smartphones has been considered crucial for the company's survival, and investors had said Elop would need to quit or change strategy if sales did not pick up by early 2013.


"We're very pleased with the Lumia response," Elop told analysts, although he added that sales of the latest 920 models, which use the new Windows Phone 8 software, had been constrained by a shortage of supplies.


Nokia estimated fourth-quarter operating margin in its mobile phone business was between break-even to 2 percent. It previously forecast the margin to be around minus 6 percent.


Official results, including more details on its profit and cash position, are due on January 24.


Fourth-quarter net sales in devices and services were about 3.9 billion euros ($5.09 billion), Nokia said. It sold a total of 86.3 million devices. Smartphones accounted for 6.6 million units, of which 4.4 million were the Windows-based Lumia handsets.


Nokia shares rose 10.8 percent to 3.32 euros as some investors cheered the rare positive announcement from Nokia and traders scrambled to cover their short positions.


Nokia had 17 percent of shares out on loan, according to Markit data, making it one of the most "shorted" stocks in Europe.


STILL NEED EVIDENCE


The company said that conditions remained tough despite the stronger-than-expected fourth quarter, and forecast its margin to be around minus 2 percent in the first quarter of this year.


"We continue to operate in a competitive environment with limited visibility," Elop said.


Some analysts were skeptical about the success of the Lumia strategy. Nokia would not say how many of the Lumias it sold were the newest models rather than the heavily discounted ones launched earlier.


Many also noted Lumias sold in the fourth quarter still make up a small portion of global smartphone sales in the same period, estimated at over 200 million.


"4.4 million Lumias sold is not yet a promise of a turnaround," said Inderes analyst Mikael Rautanen, who had just downgraded the shares to "sell" on Tuesday.


Bernstein analyst Pierre Ferragu said he was still negative about the shares, rating them "underperform".


"Last year, in order to sustain Lumia volumes, Nokia had to cut prices very rapidly, driving gross margins close to zero. We believe this will repeat this year," he said.


Redeye analyst Greger Johansson said it was too early to call it a turnaround.


"They will have to prove a lot more until you can say that," he said. "I'm not still convinced that they are going to manage to succeed with those new smartphones. They have to sell a lot more in volumes until you can say that."


($1 = 0.7667 euros)


(Additional reporting by Terhi Kinnunen and Sudip Kar-Gupta; Editing by David Goodman and Sophie Walker)



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'Lincoln' leads Oscars with 12 nominations


BEVERLY HILLS, Calif. (AP) — Steven Spielberg has matched his personal best at the Academy Awards: 12 nominations for his Civil War saga "Lincoln," including best picture, director and acting honors for Daniel Day-Lewis, Sally Field and Tommy Lee Jones.


That ties the 12 nominations for his 1993 drama "Schindler's List," which won seven Oscars, including best picture and director.


Also among the nine nominees for best picture Thursday: the old-age love story "Amour"; the Iran hostage thriller "Argo"; the independent hit "Beasts of the Southern Wild"; the slave-revenge narrative "Django Unchained"; the musical "Les Miserables"; the shipwreck story "Life of Pi"; the lost-souls romance "Silver Linings Playbook"; and the Osama bin Laden manhunt chronicle "Zero Dark Thirty."


"Life of Pi" surprisingly ran second with 11 nominations, ahead of "Zero Dark Thirty" and "Les Miserables," which had been considered potential front-runners.


"I thought we'd get a few, so this is really great for us," said "Life of Pi" director Ang Lee. "Eleven really surprised me. But it's a good surprise. I'm very happily surprised."


More surprising were snubs in the directing category, where three favorites missed out: Ben Affleck for "Argo" and past Oscar winners Kathryn Bigelow for "Zero Dark Thirty" and Tom Hooper for "Les Miserables." Bigelow was the first woman ever the win the directing Oscar for 2009's "The Hurt Locker," while Hooper won a year later for "The King's Speech."


The best-picture category also had surprising omissions. The acclaimed first-love tale "Moonrise Kingdom" was left out and only got one nomination, for original screenplay. Also snubbed for best-picture was "The Master," a critical favorite that did manage three acting nominations, for Joaquin Phoenix, Amy Adams and Philip Seymour Hoffman.


Two-time winner Spielberg earned his seventh directing nomination, and also in the mix are past winner Lee for "Life of Pi" and past nominee David O. Russell for "Silver Linings Playbook." The other slots went to surprise picks who are first-time nominees: Michael Haneke for his French-language "Amour" and Benh Zeitlin for "Beasts of the Southern Wild."


Oscar directing contenders often are identical or at least usually line up closely with those for the Directors Guild of America Awards. But only Spielberg and Lee made both lists this time. The Directors Guild also nominated Affleck, Bigelow and Hooper, but not Haneke, Russell or Zeitlin.


Haneke's "Amour" also was a best-picture surprise. The film, which won the top prize at last May's Cannes Film Festival, mainly had been considered a favorite in the foreign-language category, where it also was nominated. "Amour" had five nominations, including original screenplay and best-actress for Emmanuelle Riva.


"It is fulfilling to discover that a film has found the audience and critical acclaim that 'Amour' has garnered," Haneke said. "I have been very fortunate on both those fronts, but it is especially rewarding to discover that a film has found favor among one's industry peers who know, in particular, the effort that goes into getting a film — any film — made."


The year's second-biggest box-office hit, "The Dark Knight Rises," was shut out entirely, even for visual effects. The omission of its predecessor, "The Dark Knight," from best-picture consideration for 2008 was largely responsible for the expansion of the Oscar category from five nominees to 10 the following year. "The Dark Knight" had earned eight nominations and won two Oscars.


Chronicling Abraham Lincoln's final months as he engineers passage of the 13th Amendment abolishing slavery, "Lincoln" stars best-actor contender Day-Lewis in a monumental performance as the 16th president, supporting-actress nominee Field as the notoriously headstrong Mary Todd Lincoln and supporting-actor prospect Jones as abolitionist firebrand Thaddeus Stevens.


Joining Day-Lewis in the best-actor field are Bradley Cooper as a psychiatric patient trying to get his life back together in "Silver Linings Playbook"; Hugh Jackman as Victor Hugo's tragic hero Jean Valjean in "Les Miserables"; Phoenix as a Navy vet who falls in with a cult in "The Master"; and Denzel Washington as a boozy airline pilot in "Flight."


Cooper had been a bit of a longshot. John Hawkes, a potential best-actor favorite, missed out for his role as a man in an iron lung aiming to lose his virginity in "The Sessions."


Nominated for best actress are Jessica Chastain as a CIA operative hunting bin Laden in "Zero Dark Thirty"; Jennifer Lawrence as a troubled young widow struggling to heal in "Silver Linings Playbook"; Riva as an ailing woman tended by her husband in "Amour"; Quvenzhane Wallis as a spirited girl on the Louisiana delta in "Beasts of the Southern Wild"; and Naomi Watts as a mother caught up in a devastating tsunami in "The Impossible."


Best actress had a wild age range: Riva is the oldest nominee ever in the category at 85, while Wallis is the youngest ever at 9.


Along with Field, supporting-actress nominees are Adams as a cult leader's devoted wife in "The Master"; Anne Hathaway as an outcast mother reduced to prostitution in "Les Miserables"; Helen Hunt as a sex surrogate in "The Sessions"; and Jacki Weaver as an unstable man's doting mom in "Silver Linings Playbook."


Besides Jones, the supporting-actor contenders are Alan Arkin as a wily Hollywood producer in "Argo"; Robert De Niro as a football-obsessed patriarch in "Silver Linings Playbook"; Hoffman as a dynamic cult leader in "The Master"; and Christoph Waltz as a genteel bounty hunter in "Django Unchained."


"Family Guy" creator Seth MacFarlane, who will host the Feb. 24 Oscars, joined Emma Stone to announce the Oscar lineup, and he scored a nomination himself. He's up for original song for "Everybody Needs a Best Friend," the tune he co-wrote for his big-screen directing debut "Ted."


"That's kind of cool I got nominated," MacFarlane deadpanned at the announcement. "I get to go to the Oscars."


Walt Disney predictably dominated the animated-feature category with three of the five nominees: "Brave," ''Frankenweenie" and "Wreck-It Ralph." Also nominated were "ParaNorman" and "The Pirates! Band of Misfits."


"I'm absolutely blown away," ''Wreck-It Ralph" director Rich Moore said. "It is weird at 5:30 in the morning to hear Emma Stone say your name. It's surreal."


"Lincoln" is Spielberg's best awards prospect since his critical peak in the 1990s, when he won best-picture and directing Oscars for "Schindler's List" and a second directing Oscar for "Saving Private Ryan."


Spielberg's latest film could vault him, Day-Lewis and Field to new heights among Hollywood's super-elite of multiple Oscar winners.


A best-picture win for "Lincoln" would be Spielberg's second, while another directing win would be his third, a feat achieved only by Frank Capra and William Wyler, who each earned three directing Oscars, and John Ford, who received four.


"Lincoln" also was the ninth best-picture nominee Spielberg has directed, moving him into a tie for second-place with Ford. Only Wyler directed more best-picture nominees, with 13.


Day-Lewis and Field both have two lead-acting Oscars already, he for "My Left Foot" and "There Will Be Blood" and she for "Norma Rae" and "Places in the Heart." A third Oscar for either would put them in rare company with previous triple winners Ingrid Bergman, Walter Brennan, Jack Nicholson and Meryl Streep. Katharine Hepburn is the record-holder with four acting Oscars.


An Oscar for Jones would be his second supporting-actor prize; he previously won for "The Fugitive."


"Lincoln" composer John Williams — whose five Oscars include three for the music of three earlier Spielberg films, "Jaws," ''E.T. the Extra-terrestrial" and "Schindler's List" — earned his 43rd nomination for best score, extending his all-time record in the category.


The Oscars feature a best-picture field that ranges from five to 10 films depending on a complex formula of ballots from the 5,856 voting members of the Academy of Motion Picture Arts and Sciences.


Nominations in most categories are decided by ballots from members of specific academy branches — such as directors, writers or actors. All members are eligible to vote for best-picture nominees, and the entire academy can vote in every category for the actual Oscars, whose balloting begins Feb. 8.


Winners for the 85th Oscars will be announced Feb. 24 at a ceremony aired live on ABC from Hollywood's Dolby Theatre.


___


AP entertainment writers Christy Lemire, Sandy Cohen, Anthony McCartney and Derrik Lang in Los Angeles and AP writer Jill Lawless in London contributed to this report.


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F.D.A. Requires Cuts to Dosages of Ambien and Other Sleep Drugs





The Food and Drug Administration announced on Thursday that it was requiring manufacturers of popular sleeping pills like Ambien and Zolpimist to cut their recommended dosage in half for women, after laboratory studies showed that they can leave people still sleepy in the morning and at risk for accidents.


The agency issued the requirement for drugs containing the active ingredient zolpidem, by far the most widely used sleep aid. Using lower doses means less of the drug will remain in the blood in the morning hours, and leave people who take it less exposed to the risk of impairment while driving to work.


Women eliminate zolpidem from their bodies more slowly than men and the agency told manufacturers that the recommended dosage for women should be lowered to 5 milligrams from 10 milligrams for immediate-release products like Ambien, Edluar and Zolpimist. Dosages for extended-release products should be lowered to 6.25 milligrams from 12.5, the agency said. The agency also recommended lowering dosages for men.


An estimated 10 to 15 percent of women will have a level of zolpidem in their blood that impairs driving eight hours after taking the pill, while only about 3 percent of men do, said Dr. Robert Temple, deputy director for clinical science in the F.D.A.'s Center for Drug Evaluation and Research.


Doctors will still be told that they can prescribe the higher dosage if the lower one does not work, Dr. Temple said.


“Most people thought that by the morning it is gone,” he said. “What we’re reminding people is that is sort of true, but that in some women who take a full 10 milligram dose, and in a lot of people who take the control release dose, it is not entirely true. Some people will be impaired in the morning.”


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Nokia Sees Results From New Smartphone Line


BERLIN — Nokia said Thursday that its struggling mobile phone business was showing signs of a rebound, turning a profit in the fourth quarter fueled by sales of its Lumia smartphones that use Microsoft software.


Stephen Elop, the Nokia chief executive, said sales of smartphones and more basic cellphones, as well as profitability at the Nokia Siemens network-equipment venture, all came in better than expected during the three months through December.


“While we definitely experienced some tough challenges in the first half of 2012, we are managing through these issues,” Mr. Elop said in a conference call with journalists.


Nokia has amassed nearly €5 billion, or $6.5 billion, in losses since Mr. Elop, a former Microsoft executive, announced plans to phase out Nokia phones that used its own Symbian operating system for the Lumia line, which uses the Windows Phone 8 software, in February 2011.


Sales of Lumia phones increased only modestly during the early part of 2012, raising concern that the company’s turnaround strategy, marked by cost cutting and the sale of subsidiary businesses, would not be enough to save the former market leader.


But in the fourth quarter, amid heavy television and print ad spending in Europe and North America, Nokia said it sold 4.4 million Lumia phones, up from 2.9 million in the third quarter.


The company said revenue from the sale of 86.3 million mobile phones of all kinds amounted to €3.9 billion in the quarter, without providing comparative figures.


The company’s shares surged as much as 16 percent in Helsinki on the news.


In a statement, Nokia said that it expected operating profit at its devices and services business, which makes up about half of its total sales, to break even or generate a profit of as much as 2 percent of sales in the fourth quarter. In October, Nokia had told investors that it expected the business to make an operating loss of as much as 10 percent of sales.


But sales of its Lumia smartphone and Asha feature phones rose more than expected. Also, Nokia Siemens, its network gear venture, will report an operating profit of 13 percent to 15 percent of sales in the fourth quarter, compared with an expected range of 4 percent to 12 percent.


Looking ahead, Nokia said it expected to return to an operating loss of 2 percent of sales in the first quarter amid the post-holiday buying lull and harsh competition. But the results for the coming three months could vary widely, Nokia warned, from an even bigger 6 percent operating loss to a 2 percent operating profit.


Pete Cunningham, an analyst at Canalys, a research firm in Reading, England, said Nokia’s improving financial position was a positive step. But the company, which ceded its market leadership to Samsung and Apple, is not out of the woods yet.


“On face value, this is a positive for Nokia,” Mr. Cunningham said. “But 2013 could still turn out to be another very difficult year for Nokia. It is way too premature to say that the company has made a turnaround.”


Mr. Cunningham said he used the Lumia 920, Nokia’s newest smartphone, during the Christmas holidays and liked the experience.


“But the more I used the phone, the more apparent it became to me that there are big gaps between Lumia and its competitors in terms of the functionality and usability of its apps,” Mr. Cunningham said. “I still think there is a lot of work to be done on Lumia.”


Mr. Elop said Nokia would continue to innovate to close the gap with competitors. The big issues that Nokia faces, he said, are “managing efficiently, building great products and changing the way we operate. We’re beginning to see that happen.”


Nokia’s shares closed up nearly 13 percent at €3.39 in Helsinki trading.


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Iranian Captives Freed in Major Prisoner Exchange in Syria





ISTANBUL — More than 2,000 prisoners incarcerated by the Syrian authorities were being released on Wednesday in return for 48 Iranians freed by rebels after five months in captivity in what appeared to be the biggest prisoner swap since the uprising against President Bashar al-Assad began almost two years ago.




The exchange, brokered by Turkey and Qatar, came days after Mr. Assad warned on Sunday that he would not abandon the fight against armed adversaries pressing on the approaches to the Syrian capital, Damascus, and brushed aside calls for him to quit.


Word of the exchange dominated news in Iran, the Syrian government’s only Middle East ally, leading the Web site of the official Islamic Republic News Agency. Iran state television showed a brief clip of the released hostages at the Sheraton Hotel in Damascus, grinning, flashing victory signs and holding flowers. In an interview on Iran state TV, the Foreign Ministry spokesman, Ramin Mehmanparast, thanked those involved in the swap for the hostages and expressed happiness that “we managed to get them released.”


Precise details of the exchange, including when the 48 Iranians would be repatriated, remained unclear. Mr. Mehmanparast also said two Iranian engineers who had been abducted earlier in Syria remained captive. But Prime Minister Recep Tayyip Erdogan of Turkey, a regional power broker allied to the Western and Arab nations seeking Mr. Assad’s departure, said he hoped the exchange on Wednesday would lead to freedom for more prisoners in Syria.


“We wish many other innocent people, and people in need, to be released from Syrian jails without delay,” Mr. Erdogan said in a televised news conference in Niamey, Nigeria, where he arrived on an official visit.


“This process needs to be appreciated. We are not in a position to say anything more than, ‘May this produce some good.’ ”


The exchange emerged from months of behind-the-scenes negotiations involving a Turkish charitable foundation, the Humanitarian Relief Foundation, an Islamist-leaning aid organization based in Istanbul and widely known as I.H.H.


The aid group had set up an operation center in Damascus to unite 2,130 prisoners, including 73 women, at one base while another aid team remained in Douma, near the Syrian capital, to oversee the return of the 48 Iranians.


“Captivity is a hard thing,” said Bulent Yildirim, the foundation’s director, who coordinated the exchange in Damascus.


“I saw young women crying, many people lost a lot of weight, and there were also many sick people.”


The Syrian opposition has claimed that the Iranians are members of Iran’s Islamic Revolutionary Guards Corps, but Tehran has denied the assertion, saying the captives are Shiite civilian pilgrims. The Iranians were seized in August while traveling on a bus from Damascus International Airport to a Shiite shrine on the outskirts of the capital, Iran’s Press TV said.


Opposition fighters had threatened to kill the Iranians unless Mr. Assad’s forces halted military operations. But since then the fighting around Damascus has intensified.


Iran is Mr. Assad’s main ally in a region where most Arab states and neighboring Turkey have turned against him. The Iranian captives offered the rebels holding them a source of powerful pressure on the Syrian leader to release opposition prisoners in return.


“We expect the swap to be completed in the next hour,” Huseyin Oruc, a member of the aid group’s executive board said in a telephone interview around midday. He said the captives released by the Syrian authorities included four Turks and a Palestinian.


By midafternoon it was not clear whether the 2,130 prisoners had been freed.


“It is the first time that the ‘humanitarian diplomacy’ we initiated succeeded in releasing such a large group of people at once,” Mr. Oruc said. “There are many more held captive and our efforts to free them will continue without delay.”


The Turkish aid group gained international attention in 2010 for organizing a flotilla of boats heading to Gaza, ostensibly with relief supplies, that prompted a deadly Israeli commando raid in which eight Turks and an American of Turkish descent died. At the time of the raid, the group was reported to have extensive connections with Turkey’s political elite. The episode began an unraveling of Turkey’s once close ties with Israel.


In recent months, the organization has also been part of negotiations to free smaller numbers of prisoners, including two Turkish journalists held in Syria, Reuters reported. It has been active since the early 1990s in charitable works in the Middle East and Africa, focusing most recently on Gaza.


Since the start of the uprising against Mr. Assad, the organization has also cast itself as a leading private charitable organization in Syria, delivering food and other basic supplies and pursuing what it calls “humanitarian diplomacy” to help free captive civilians.


While the numbers involved in Wednesday’s exchange seemed dramatic, some rebel commanders said more modest prisoner exchanges had become a feature of the conflict.


The leader of a rebel fighting group in the central city of Hama, reached via Skype, said pro-government militia members had captured his uncle and two other relatives in a village in the northern Idlib province more than a month ago.


 “The  only  way to release them is capturing  hostages,” the commander said, adding that negotiations were under way to win the release of his relatives in return for 12 captives held by the rebels. Two months ago, the commander said, nine members of the pro-government militia, known as shabiha, were  exchanged for five captured rebels. Syria’s uprising began in March 2011 with peaceful demonstrations, but a harsh suppression broadened into civil war with an estimated 60,000 people killed, according to United Nations estimates.


Sebnem Arsu reported from Istanbul and Alan Cowell from London. Hwaida Saad contributed reporting from Beirut, Lebanon, and Thomas Erdbrink from Tehran.



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Google drops key patent claims against Microsoft


WASHINGTON (Reuters) - Google unit Motorola Mobility has asked a trade panel to drop two key patents from an infringement complaint that it filed against Microsoft, according to a filing at the International Trade Commission.


The ITC has been considering accusations by Motorola Mobility, which has since been purchased by Google, that Microsoft infringed on its patented technology to make its popular Xbox.


Google filed a motion with the ITC on Tuesday, asking that two patents be withdrawn from the case. One patent remains, according to the filing.


The withdrawal was required under an agreement that Google made with the Federal Trade Commission last week settling a pair of long-running antitrust investigations.


The FTC, U.S. Department of Justice and U.S. Patent and Trademark Office assert that companies should not request sales bans when filing patent infringement lawsuits based on patents that are essential to a standard in most cases. Standard essential patents ensure that devices are interoperable.


Microsoft identified the two patents withdrawn from the ITC case as standard essential patents.


"We're pleased that Google has finally withdrawn these claims for exclusion orders (sales bans) against Microsoft, and hope that it will now withdraw similar claims pending in other jurisdictions," David Howard, Microsoft's deputy general counsel, said in an emailed statement.


Google did not immediately respond to requests for a comment.


Microsoft said that standard essential patents had been asserted in cases in Wisconsin and Washington district courts, both of which have been stayed. Sales bans, or injunctions, were requested in both cases, Microsoft said.


The ITC is a popular venue for patent lawsuits because it can bar the importation of infringing products and because it issues decisions relatively quickly.


The International Trade Commission case is No. 337-752.


(Reporting By Diane Bartz; Editing by Maureen Bavdek)



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