Petraeus resignation as CIA chief brings sudden halt to career









The resignation of CIA Director David Petraeus has brought a sudden and unexpected end to the public career of a four-star general who led U.S. troops in Afghanistan and Iraq and was thought to be a potential candidate for president.

Petraeus admitted to an extramarital affair in tendering his resignation, which President Barack Obama accepted Friday.

Petraeus carried on the affair with his biographer Paula Broadwell, a reserve Army officer, according to several U.S. officials with knowledge of the situation. They spoke anonymously because they were not authorized to discuss publicly the investigation that led to the resignation.











The FBI discovered the relationship by monitoring Petraeus' emails, after being alerted Broadwell may have had access to his personal email account, two of the officials said.

Broadwell did not respond to voice mail or email messages seeking comment. Broadwell's biography, "All In: The Education of General David Petraeus," was written with Vernon Loeb, a Washington Post editor, and published in January.

Lawmakers from both parties joined Obama in praising Petraeus. Obama said in a statement that Petraeus had provided "extraordinary service to the United States for decades" and had given a lifetime of service that "made our country safer and stronger."

CIA Deputy Director Michael Morell will serve as acting director, Obama said. Morell was the key CIA aide in the White House to President George W. Bush during the Sept. 11, 2001, terror attacks.

"I am completely confident that the CIA will continue to thrive and carry out its essential mission," Obama said.

The resignation comes at a sensitive time. The administration and the CIA have struggled to defend security and intelligence lapses before the attack that killed the U.S. ambassador to Libya and three others. It was an issue during the presidential campaign that ended with Obama's re-election Tuesday.

The CIA has come under intense scrutiny for providing the White House and other administration officials with talking points that led them to say the Benghazi attack was a result of a film protest, not a militant terror attack. It has become clear that the CIA was aware the attack was distinct from the film protests roiling across other parts of the Muslim world.

Morell rather than Petraeus now is expected to testify at closed congressional briefings next week on the assault on the consulate in Benghazi, which occurred on the 11th anniversary of the 9/11 attacks.

Petraeus, who turned 60 on Wednesday, has been married for 38 years to Holly Petraeus, whom he met when he was a cadet at the U.S. Military Academy at West Point, N.Y. She was the daughter of the academy superintendent. They have two children, and their son led an infantry platoon in Afghanistan.

The retired general told his staffers in a statement that he was guilty of "extremely poor judgment" in engaging in the affair. "Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours." He said he had offered his resignation to Obama on Thursday and the president accepted it Friday.

Administration officials said the White House was first notified about the Petraeus affair on Wednesday, the day after the election. Obama, who returned to the White House that evening after spending Election Day in Chicago, wasn't informed until Thursday morning.

For the director of the CIA, being engaged in an extramarital affair is considered a serious breach of security and a counterintelligence threat. If a foreign government had learned of the affair, the reasoning goes, Petraeus or Broadwell could have been blackmailed or otherwise compromised. Military justice considers conduct such as an extramarital affair to be possible grounds for court-martial.

Failure to resign also could create the perception for the rank and file that such behavior is acceptable.

At FBI headquarters, spokesman Paul Bresson declined to comment on the information that the affair had been discovered in the course of an investigation by the bureau.

Holly Petraeus is known for her work helping military families. She joined the new Consumer Financial Protection Bureau to set up an office dedicated to helping service members with financial issues.

Though Obama made no direct mention of Petraeus' reason for resigning, he offered his thoughts and prayers to the general and his wife, saying that Holly Petraeus had "done so much to help military families through her own work. I wish them the very best at this difficult time."

Petraeus, who became CIA director in September 2011, was known as a shrewd thinker and hard-charging competitor. His management style was recently lauded in a Newsweek article by Broadwell.





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Exclusive: Google Ventures beefs up fund size to $300 million a year

SAN FRANCISCO (Reuters) - Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.


Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.


It puts the firm on the same footing as more established corporate venture funds such as Intel's Intel Capital, which typically invests $300-$500 million a year.


"It puts a lot more wood behind the arrow if we need it," said Bill Maris, managing partner of Google Ventures.


Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.


Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.


Every year, it typically funds 40-50 "seed-stage" deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.


LACKING SUPERSTARS


Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.


Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm's recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.


Soon it could have even more cash to play around with. "Larry has repeatedly asked me: 'What do you think you could do with a billion a year?'" said Maris, referring to Google chief executive Larry Page.


(Editing by Muralikumar Anantharaman)


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Lakers rout Warriors 101-77 after Brown's firing

LOS ANGELES (AP) — A few hours after the Los Angeles Lakers' top brass abruptly fired coach Mike Brown and threw their season into turmoil before mid-November, Brown's former players demonstrated why there's still ample reason to think this team can be saved.

The Lakers should find out soon whether Phil Jackson gets the chance to do the saving — again.

Kobe Bryant scored 27 points, Pau Gasol added 14 points and 16 rebounds, and the Lakers doubled their win total with a 101-77 victory over the Golden State Warriors on Friday night.

Jordan Hill scored 14 points for the Lakers, who were uniformly stunned by Brown's dismissal after just 18 months on the job. Following a bumpy first half against Golden State under interim coach Bernie Bickerstaff, they pulled away in the third quarter with a 25-9 run led by Bryant, who also had nine rebounds and seven assists.

"I think everybody didn't know how to react to it emotionally," Bryant said. "Everybody had to just go about their business and play basketball. ... A lot of the emotion that was picked up was kind of unleashed when we played."

The comfortable victory capped one of the most tumultuous days in recent history for a franchise that's never short on drama. With the high-priced veteran club off to a Western Conference-worst 1-4 start following a winless preseason, Lakers general manager Mitch Kupchak and owner Jim Buss abruptly dismissed Brown, informing players during their morning shootaround.

Bickerstaff ran the Lakers as the interim coach, but the veteran NBA bench boss isn't likely to be a candidate for the full-time job. Kupchak is searching for a replacement, possibly making a selection before the Lakers' next game on Sunday against Sacramento.

The Lakers' crowd quickly made its choice known: A chant of "We want Phil!" rose out of the stands while Bryant shot a free throw in the third quarter, and echoed a few more times later in the half.

"I can understand why," Bickerstaff said. "The guy's got the rings."

Jackson, the 11-time NBA champion coach who won five rings in two previous stints running the Lakers, is near the top of Kupchak's list again, the GM acknowledged. Mike D'Antoni, the former Knicks and Suns coach, also is thought to be a prime candidate.

Bryant said he would be thoroughly happy with Jackson, D'Antoni or former Lakers assistant coach Brian Shaw in charge. Bryant's injury struggles during Jackson's final season would give him particular motivation for a third stint together.

"I wasn't able to give him my real self because I was playing on one leg," Bryant said. "It's always kind of eaten away at me that in the last year of his career ... I couldn't give him everything I had because I was playing on one knee."

Dwight Howard had six points and eight rebounds while playing just 24 minutes for the Lakers in his ongoing return from offseason back surgery. Steve Nash, the other major addition to the club, watched from behind the bench, missing his fourth straight game with a small fracture in his leg. Nash will be out for at least another week, the Lakers announced after the game.

After the protracted drama between Orlando coach Stan Van Gundy and the six-time All-Star center, Howard met questions about the Lakers' coaching staff with a smile and silence.

"I'm going to keep that to myself," Howard said. "I learned my lesson last year."

Brown never got the chance to integrate the two stars into his new offense while they were dogged by health issues. Kupchak and Buss still needed to see more progress than the Lakers managed in the past six weeks, particularly on defense — and they saw it against the Warriors, who managed just 33.7 percent shooting and made 19 turnovers.

"We were just out of sync, no excuse," Golden State coach Mark Jackson said. "If you're going to beat a good team on the road, you've got to take care of the basketball. We came in with the mindset to run, and they outscored us even in fast-break points. Just disappointed overall."

Stephen Curry scored 18 points and Klay Thompson had 15 for the Warriors, who have lost five straight to the Lakers overall, and nine in a row at Staples Center since March 2008.

"I think we played well, but the score doesn't say that," Curry said. "Defensively, we did a pretty good job. We're just undersized down there, trying to battle the boards and the paint."

The Lakers' offensive struggles evaporated in the third quarter while they leaped to an 18-point lead over the undermanned Warriors, who struggled to contend inside without injured center Andrew Bogut.

Darius Morris had career highs of 10 points and five rebounds while playing the majority of the Lakers' minutes at point guard. Los Angeles' reserves have been largely ineffective during Brown's tenure, but Morris and Hill led a spirited effort against the Warriors, outscoring their counterparts with Golden State 37-17.

NOTES: Lakers F Devin Ebanks was inactive after getting arrested on suspicion of driving under the influence of alcohol or drugs early Friday morning. Rookie Darius Johnson-Odom made his NBA debut in the final minutes. ... Warriors C Andris Biedrins came up roughly 2 feet short on an airballed free throw in the first half. The Latvian veteran has a career free throw shooting percentage just over 50 percent. ... Brown went 42-29 with the Lakers, coaching them to the second round of the playoffs during the strike-shortened season before his abbreviated start to this fall.

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Chen Guang-who? Chinese official claims ignorance of blind activist
















BEIJING (Reuters) – Despite causing a huge diplomatic incident between the world’s two largest economies earlier this year, the Chinese official in charge of the hometown of blind legal activist Chen Guangcheng said on Friday that he has no idea who he was.


Chen, one of China’s most prominent human rights advocates, slipped away from under the noses of guards and eyes and ears of surveillance equipment around his village home near Linyi in eastern Shandong province in late April.













He then sought refuge at the U.S. embassy in Beijing for six days, embarrassing China and creating an awkward backdrop for U.S. Secretary of State Hillary Clinton’s visit which happened to fall at the same time.


But asked on the sidelines of a party congress in Beijing about Chen, Linyi’s Communist Party boss Zhang Shaojun deadpanned.


“I’ve never heard (of him),” Zhang told Reuters, before hurrying away into a closed-door meeting.


In May, Chen told Reuters that an unnamed central government official had promised to investigate accusations that local officials engineered his jailing on false charges and subsequent 19 months of extra-judicial house arrest and abuse.


But Zhang, a portly man with thinning hair, said he knew of no such investigation.


“I’ve never heard of this matter,” he said.


Robbed of his sight as a child, the rural-born Chen taught himself law and drew international attention in 2005 after accusing officials of enforcing late-term abortions and sterilizations.


Following intense negotiations between Chinese and U.S. officials, Chen left the embassy and was allowed to apply for a visa to study abroad. He is currently a visiting fellow at the New York University School of Law.


(Reporting by Gabriel Wildau; Editing by Ben Blanchard)


Celebrity News Headlines – Yahoo! News



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Malaria vaccine a letdown for infants

LONDON (AP) — An experimental malaria vaccine once thought promising is turning out to be a disappointment, with a new study showing it is only about 30 percent effective at protecting infants from the killer disease.

That is a significant drop from a study last year done in slightly older children, which suggested the vaccine cut the malaria risk by about half — though that is still far below the protection provided from most vaccines. According to details released on Friday, the three-shot regimen reduced malaria cases by about 30 percent in infants aged 6 to 12 weeks, the target age for immunization.

Dr. Jennifer Cohn, a medical coordinator at Doctors Without Borders, described the vaccine's protection levels as "unacceptably low." She was not linked to the study.

Scientists have been working for decades to develop a malaria vaccine, a complicated endeavor since the disease is caused by five different species of parasites. There has never been an effective vaccine against a parasite. Worldwide, there are several dozen malaria vaccine candidates being researched.

In 2006, a group of experts led by the World Health Organization said a malaria vaccine should cut the risk of severe disease and death by at least half and should last longer than one year. Malaria is spread by mosquitoes and kills more than 650,000 people every year, mostly young children and pregnant women in Africa. Without a vaccine, officials have focused on distributing insecticide-treated bed nets, spraying homes with pesticides and ensuring access to good medicines.

In the new study, scientists found babies who got three doses of the vaccine had about 30 percent fewer cases of malaria than those who didn't get immunized. The research included more than 6,500 infants in Africa. Experts also found the vaccine reduced the amount of severe malaria by about 26 percent, up to 14 months after the babies were immunized.

Scientists said they needed to analyze the data further to understand why the vaccine may be working differently in different regions. For example, babies born in areas with high levels of malaria might inherit some antibodies from their mothers which could interfere with any vaccination.

"Maybe we should be thinking of a first-generation vaccine that is targeted only for certain children," said Dr. Salim Abdulla of the Ifakara Health Institute in Tanzania, one of the study investigators.

Results were presented at a conference in South Africa on Friday and released online by the New England Journal of Medicine. The study is scheduled to continue until 2014 and is being paid for by GlaxoSmithKline and the PATH Malaria Vaccine Initiative.

"The results look bad now, but they will probably be worse later," said Adrian Hill of Oxford University, who is developing a competing malaria vaccine. He noted the study showed the Glaxo vaccine lost its potency after several months. Hill said the vaccine might be a hard sell, compared to other vaccines like those for meningitis and pneumococcal disease — which are both effective and cheap.

"If it turns out to have a clear 30 percent efficacy, it is probably not worth it to implement this in Africa on a large scale," said Genton Blaise, a malaria expert at the Swiss Tropical and Public Health Institute in Basel, who also sits on a WHO advisory board.

Eleanor Riley of the London School of Hygiene and Tropical Medicine, said the vaccine might be useful if used together with other strategies, like bed nets. She was involved in an earlier study of the vaccine and had hoped for better results. "We're all a bit frustrated that it has proven so hard to make a malaria vaccine," she said. "The question is how much money are the funders willing to keep throwing at it."

Glaxo first developed the vaccine in 1987 and has invested $300 million in it so far.

WHO said it couldn't comment on the incomplete results and would wait until the trial was finished before drawing any conclusions.

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Justin Bieber and Selena Gomez call it quits

NEW YORK (AP) — A source confirms to The Associated Press that Justin Bieber is no longer Selena Gomez's "Boyfriend."

The source is not authorized to discuss the split with the press and spoke on condition of anonymity.

The breakup apparently happened last week, and distance and their busy schedules were cited as factors.

The 18-year-old "Boyfriend" singer is touring to promote his latest album, while 20-year-old Gomez is filming a "Wizards of Waverly Place" reunion for the Disney Channel.

The pair first stepped up publicly in February 2011.

E! News was the first to report the split.

Bieber seems to be doing OK, at least publicly. On the red carpet of Wednesday's Victoria's Secret fashion show he said, "I'd rather be here than anywhere in the world."

___

Online:

http://www.justinbiebermusic.com/

http://www.selenagomez.com/

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Retailers plan earlier start to Black Friday









Cierra Hobson is a die-hard Black Friday shopper.

Every year she queues in front of one of her favorite stores, where she waits, in her pajamas, in hopes of bagging a good deal.

This year, Hobson and other deal-seekers will find some twists on the post-Thanksgiving Day ritual: coupons delivered via mobile phones and deeper discounts, maneuvers designed to make shopping easier for consumers and to set retailers on a strong start to the biggest shopping period of the year. But perhaps the biggest change will be an earlier start to the holiday rush.

Black Friday historically launched the day after Thanksgiving. But in recent years, stores have opened at 4 a.m., then midnight. Last year, retailers created a stir by opening at 10 p.m. Thursday. This year, Sears and Wal-Mart announced plans to open at 8 p.m.

"The name of the game this holiday season is who can do it best," said National Retail Federation spokeswoman Kathy Grannis.

"When (early openings) started in 2009, things were a little bit worse off in terms of consumer confidence," Grannis added. "At that point it was very necessary for retailers to get out there before anybody else, and that literally meant before midnight."

This year, holiday spending is expected to rise 4.1 percent, according to the retail federation. Last year, more than 24 percent of Black Friday shoppers were out before midnight and nearly 39 percent of shoppers were in the stores before 5 a.m.

Wal-Mart plans to greet shoppers with the likes of $89 Wii consoles and a $38 Blu-ray player. At Sears, there will be perks on sale items for members of its shopper loyalty program.

Both retailers are touting in-store pickup, allowing customers to buy items online and pick them up at the store, avoiding checkout lines.

The Disney Store plans to begin offering Black Friday deals on the Monday before Thanksgiving, though Disney stores will open at midnight in some markets and 5 a.m. in others. Ads leaked to Internet deal sites say Target stores will open at 9 p.m. on Thanksgiving.

Last year, Wal-Mart recorded its most customer traffic at 10 p.m. on Thanksgiving night, said spokesman Steven Restivo, adding that the retailer relied on focus groups, online surveys and other feedback to help it decide to open two hours earlier this year. "Our customers told us they loved our Thanksgiving event last year and wanted it again."

At Sears, staying open 26 consecutive hours through Black Friday gives its customers the flexibility they want and makes good business sense, said spokesman Brian Hanover.

"There's a segment of Sears customers who want that thrill of holiday shopping to start as soon as their Thanksgiving dinner ends," he said. "Traditionalists," he added, can wait for door busters at 4 a.m.

Despite discounts that often go beyond 50 percent, stores still make money on the sales, retail experts say. That's because shoppers in physical stores tend to spend more than they planned, said Sanjay Dhar, professor of marketing at the University of Chicago Booth School of Business.

In the store, "you end up making purchases that aren't as marked down, in addition to the door-buster deals," he said.

Opening earlier and staggering door-buster deals is not only a good way to make money, but it's also necessary for crowd control, retail watchers say. In 2008, a store employee was trampled to death in a Black Friday door-buster stampede at a Long Island, N.Y., Wal-Mart.

Hobson said she doesn't plan to start shopping Thanksgiving night, but she said she'll be up before dawn to catch sales at Express, a clothing store.

"Just knowing that everybody is doing the same thing I'm doing on the same day feels like the beginning of Christmas," she said.

Others worry that super-early openings could backfire.

Sheri Petras, CEO of CFI Group, a Michigan-based consultancy, said store employees grumpy from having to leave their Thanksgiving festivities will take out their anger on customers.

"Consumers will not spend as much with cranky employees," she said.

Some employees at Wal-Mart, Sears and Target say they'd like the day off.

Change.org, an activist website, said Friday that more than 20 new petitions were submitted by employees and consumers asking retailers to reconsider their Thanksgiving evening openings.

It's the second year the website has administered petitions calling for retailers to stick to traditional Black Friday openings.

In a statement distributed by OUR Walmart, a labor rights group, Wal-Mart employee Mary Pat Tifft, of Wisconsin, said she would be "devastated" if she had to work on Thanksgiving, because she is expecting her son home from Afghanistan for the holiday.

"This early opening is one more example of Walmart's disconnect with the workers who keep its stores running and disregard for all of our families. As the largest employer in the country, Walmart could be setting a standard for businesses to value families, but instead, this is one more Walmart policy that hurts the families of workers at its stores," she said.

crshropshire@tribune.com

Twitter @corilyns



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Groupon shares fall below $3








Shares of Chicago-based Groupon Inc. are falling hard a day after its disappointing third-quarter earnings.

The stock was tanking 28 percent to $2.81, dropping below $3 for the first time. Groupon went public a year ago at $20 and has seen a steady drop in its stock price during its debut year, as investors registered concerns over the daily deals company's business model and growth rates. On Thursday after the market closed, Groupon posted a net loss of $3 million for the third quarter on $568.6 million in revenues. Analysts had pegged third-quarter revenue at $590 million, according to Thomson Reuters I/B/E/S.

Chief Executive Andrew Mason explained Thursday that the company is moving aggressively to resolve problems such as dissatisfied merchants and a subpar deal selection in Europe. He also touted Groupon's strategy to move beyond e-mail, drawing customers to its website in search of discounts whenever they're bored, hungry or looking for deals on certain categories of products. The company is pushing Groupon Goods, a one-year-old category that sells discounted physical products such as headphones or jewelry.

Investors and analysts, however, appeared unconvinced. In a Friday report, William Blair analyst Ralph Schackart downgraded Groupon shares. The investment firm cited sequential declines in third-party billings, which represent the total amount Groupon collects from coupon sales where it acts as the middleman. William Blair also noted pressure on Groupon's margins.

"While management is taking aggressive and positive strides to reposition the deals and goods business for successful growth, given the reduced outlook and series of our estimate reductions, we are lowering the rating to Market Perform," the report said.

wawong@tribune.com | Twitter @VelocityWong

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Exclusive: Google Ventures beefs up fund size to $300 million a year

SAN FRANCISCO (Reuters) - Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.


Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.


It puts the firm on the same footing as more established corporate venture funds such as Intel's Intel Capital, which typically invests $300-$500 million a year.


"It puts a lot more wood behind the arrow if we need it," said Bill Maris, managing partner of Google Ventures.


Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.


Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.


Every year, it typically funds 40-50 "seed-stage" deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.


LACKING SUPERSTARS


Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.


Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm's recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.


Soon it could have even more cash to play around with. "Larry has repeatedly asked me: 'What do you think you could do with a billion a year?'" said Maris, referring to Google chief executive Larry Page.


(Editing by Muralikumar Anantharaman)


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Feds drop sex abuse case against Syracuse's Fine

SYRACUSE, N.Y. (AP) — Federal authorities have dropped their investigation into sexual abuse claims that cost a Syracuse University assistant basketball coach his job, threw a top-ranked team into turmoil and threatened the career of Hall of Fame coach Jim Boeheim.

After a probe spanning nearly a year, U.S. Attorney Richard Hartunian said Friday there was not enough evidence to support claims that Bernie Fine had molested a boy in 2002 in a Pittsburgh hotel room.

"The nature and seriousness of these allegations, which involved conduct typically committed in private with individuals who are reluctant to come forward, warranted a thorough federal investigation," Hartunian said.

It wasn't clear yet whether Fine, 66, could get his job back.

His lawyers, Karl Sleight, Donald Martin and David Botsford, said in a statement that they were not surprised by the decision.

"The damage inflicted upon Bernie and his family is simply immeasurable," the lawyers said. "Bernie hopes and prays that the lesson learned and remembered is that a rush to judgment has irreversible consequences."

The investigation erupted in the glare of a spotlight on child abuse shone by the Penn State University scandal that broke shortly beforehand. Two former Syracuse ballboys, Bobby Davis and Michael Lang, came forward Nov. 17 and accused the longtime assistant of fondling them when they were teens. Davis said the sexual contact continued for years.

But the claims by Davis and Lang had happened too long ago to be prosecuted. Ten days later, though, a third man, 23-year-old Zachary Tomaselli, of Lewiston, Maine, went public with an accusation that Fine had molested him in 2002 in a hotel room when the team played in Pittsburgh. The same day, ESPN aired an audiotape in which Fine's wife, Laurie, apparently acknowledged to Davis she knew about the molestation he alleged.

Fine, who denied the allegations, was fired Nov. 27, and the federal government began investigating Tomaselli's claim, the only one that fell within the statute of limitations. The federal statute of limitations that went into effect in 2002 allows prosecution until the victim reaches age 25; Tomaselli was 23 when he made his claims.

Hartunian, in his statement, said closing the investigation doesn't mean something did or did not happen, only that there wasn't enough admissible evidence to get a conviction. He said that people should come forward with tips if they have any more information.

Davis had made the same accusation against Fine to the university and Syracuse police a decade before, but the police couldn't investigate because of the statute of limitations, and the school said its probe turned up no evidence of wrongdoing. Davis did not immediately return a call seeking comment Friday.

From the start, there were doubts.

When Davis and Lang came forward in November, Boeheim angrily defended his assistant of 35 years and said the accusers were only out for money, seeking to cash in on the publicity generated by the Penn State scandal, in which former assistant football coach Jerry Sandusky was charged with sexually abusing several boys.

Another accuser, Floyd Van Hooser, said Fine abused him for years but later said he was lying.

That left Tomaselli, who was himself accused of sexually abusing a boy at a camp in 2010 and whose father had said the boy was lying. Tomaselli was eventually convicted of sexual abuse and started a prison sentence of three years and three months in April.

Before he went behind bars, Tomaselli took the media on a wild spin, repeatedly lying in a bid, he said, to keep his name in print:

— He said Fine had made harassing phone calls to him, and Tomaselli got an order of protection. Then he said that was a lie.

— He said he had lied about the whole thing, that Fine had never touched him.

— He reverted to his old claim and insisted Fine abused him.

Tomaselli is serving a prison sentence of more than three years in Maine and could not be reached for comment. His lawyer, Justin Leary, was in court and could not immediately respond to a request for comment.

There were other sordid claims to come out, including that Fine's wife had sex with players and that Boeheim knew, or should have known, of his assistant's behavior.

While his No. 1-ranked Orange continued to rack up wins — they wouldn't drop their first game until Jan. 21 — Boeheim endured criticism and scrutiny and was questioned during news conferences about the case.

Boeheim, who just completed his 36th year coaching Syracuse, vehemently supported his longtime assistant when the accusations broke and said Davis was lying. "The Penn State thing came out, and the kid behind this is trying to get money," he told the Syracuse Post-Standard.

Amid criticism from victims' rights advocates, Boeheim apologized and said he spoke out of loyalty and was basing his comments on a 2005 university investigation that failed to corroborate Davis' claims.

Boeheim referred questions to the university's press office. University spokesman Kevin Quinn said that Syracuse appreciated the work done by the U.S. attorney's office and that the decision to fire Fine was appropriate.

"It was made in the best interest of the university," Quinn said.

Davis and Lang sued Boeheim and the university for defamation, but a judge dismissed the lawsuit, saying Boeheim's defense of his friend was clearly opinion. Gloria Allred, the lawyer who represented the two men, did not immediately comment.

Fine, who put his Syracuse home on the market in March, has been in Florida and was recently hired as a consultant for an Israeli basketball team.

Laurie Fine has sued ESPN, alleging defamation and claiming the network knew that Davis was lying and ruined her life. That suit is pending.

The university's prompt response to the allegations was done in good faith but was flawed because, among other things, there was no direct contact with law enforcement, a special committee of the university's board of trustees said in a report released in July.

Davis met Fine in the early 1980s at a park that was a basketball hangout for kids in a working-class neighborhood. After he became a ball boy in 1983 around age 11, Davis said, he went everywhere with Fine.

Fine turned into a father figure, and as Davis spent more time at the older man's house — actually living there sometimes — the abuse escalated from touching outside the pants to inside, according to Davis.

During an interview in December with The Associated Press, Davis said the abuse would sometimes occur in Fine's campus office with secretaries just beyond the closed door, at Syracuse basketball camp and at a fraternity house.

Some of the abuse would occur in Davis' bed in Fine's basement while Fine's wife was home, Davis said.

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Roger Waters plays with band of wounded veterans

NEW YORK (AP) — Roger Waters honored wounded veterans in New York by performing with them at the annual Stand Up for Heroes benefit, Thursday night.

The founding member of Pink Floyd took to the stage of the Beacon Theater with 14 wounded soldiers he met recently at the Walter Reed Army Medical Center in Washington, D.C. He rehearsed with them at the hospital, and for the past few days in New York.

The event benefited the Bob Woodruff Foundation, which helps returning veterans and their families, and featured Waters, Bruce Springsteen, Ricky Gervais, Robin Williams, and others.

Before the show, Waters chatted with veterans and called the experience "fantastic." He says he's "looking forward to pulling for the rest of these guys with their comrades" during the healing process.

He says that he shares "enormous empathy with the men."

"I lost my grandfather in 1916 and my father in 1944, so I've been around the sense of loss and what loss from war can do to people," Waters said.

"I never talk about the politics because it's not relevant to me. I'm not interested in it," he said. "What I am interested in is the burdens these guys bear and would never question motive or even dream of talking about any of the politics."

He added: "If any of us have a responsibility in our lives it is to tear down the walls of indifference and miscommunication between ourselves and our fellow men."

Waters said he rehearsed with many of the soldiers at the hospital in between their medical procedures. Before the show, he walked the red carpet with Staff Sgt. Robert Henline, who was not in the band. In 2007, Henline was the sole survivor of a roadside bombing north of Baghdad. As a result, he suffered burns over 38 percent of his body and his head was burned to the skull.

Henline, who fought for his life after the attack, has endured more than 40 surgeries.

Still, he maintains a sense of humor. On the open red carpet on a chilly night, Waters pushed closer to Henline for warmth.

"Get next to the burn guy. I'm good. I'm heated up," Henline joked.

No surprise. The retired soldier says he's been doing stand-up comedy for the past year and a half.

Waters performed three songs with the veterans, including the Pink Floyd classic, "Wish You Were Here."

Waters said he didn't think there would be a reunion with his former band.

"I think David (Gilmour) is retired by and large. I shouldn't speak for him. But that's the impression I get."

Waters then added: "Hey whatever. All good things come to an end."

While his mammoth tour of "The Wall" ended this summer, Waters promised the theatrical version would hit the Broadway stage in the near future.

The Bob Woodruff Foundation has supported more than 1 million veterans, service members, and their families since it began in 2008.

_____

John Carucci covers entertainment for The Associated Press. Follow him at —http://www.twitter.com/jcarucci_ap

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Sandy to raise U.S. used-car prices









The estimated 250,000 cars flooded by Superstorm Sandy on the East Coast will drive up used-car prices, even as far away as California.

The supply shortage comes on the heels of an already tightened used-car market in the wake of the recession, when new car sales dried up. Some experts say prices could rise $700 to $1,000 on the typical used car in the short term. Although those effects will be felt most acutely near the flood zone, the increasingly digital and national market for used cars will spread the price shocks widely.

The flood of Sandy-damaged cars further poses the risk that many will wind up in the hands of unscrupulous dealers peddling to unwitting consumers. The vehicles pose both financial and health risks.





"Cars that have been submerged in saltwater, and contaminated by bacteria and various toxins, will soon start to appear all over the country, even in states far from the center of the storm," said Rosemary Shahan, president of Consumers for Auto Reliability and Safety.

Shahan said there were cases of Nissan vehicles flooded by Hurricane Katrina auctioned as "new" as far away as California after that storm.

She urged shoppers to look for signs of flood damage, including engines that hesitate or run roughly, musty interior smells or signs of silt residue or premature rust.

Buyers should also run the vehicle information number through the National Motor Vehicle Title Information System at vehiclehistory.gov. Insurers, salvage pools, auctions and junkyards in all 50 states are required to report all total-loss vehicles to this federal database within 30 days, Shahan said.

For new vehicles or those still within the factory warranty period, shoppers who suspect flood damage should call the manufacturer to ask if they will honor the warranty, which is typically nullified for flooded cars. If the vehicle was registered as a flood vehicle, the manufacturer won't honor the warranty, and the buyer will know there is a problem.

Although properly restored and titled salvage or flooded vehicles can be an "economical option," consumers should understand what they are getting.

"There is always a chance that there will be problems down the road with corrosion or malfunctions in the electrical systems," said Bob Passmore, senior director at the Property Casualty Insurers Assn. of America.

Rising prices caused by the storm might be one reason why consumers would turn to such cheaper options or fall victim to an attractively priced vehicle with hidden flood damage.

Prices are already comparatively high for late-model used cars, according to industry analysts. That's because of the low number of new cars sold in 2009 and 2010, which also slowed the flow of trade-ins into the used-car market. Leases, a major source of used cars, nearly disappeared.

Now the flood of Sandy-damaged cars is putting more pressure on the tight supply of late-model cars. Prices will go up at least 0.5% to 1.5% in December, said Jonathan Banks, an analyst with the National Automobile Dealers Assn. The dealer group said that amounts to a little more than $50 to $175 for the average used vehicle.

Auto information company Edmunds.com has a much higher estimate, saying that used-car prices will climb $700 to $1,000 "in the short term."

The price hikes will be highest on the East Coast but felt nationally, Banks said.

"We have seen a trend for dealers, regardless of where they are located, buying inventory online, and that means that geography is not as important as in the past," he said. "It used to be that dealers would buy cars from a physical auction near their dealership."

Pulling such a huge number of vehicles out of the U.S. fleet will have an effect at the national level, Banks said.

The problem is compounded by at least tens of thousands of new cars that were destroyed both at dealerships and storage yards in parts of New York and New Jersey hit hardest by the storm.

"Many dealers lost a significant amount of inventory. One Honda dealer told me he lost 600 new units," Banks said.

Fisker Automotive Inc., the Anaheim maker of $100,000 plug-in hybrid sports cars, said it lost 338 vehicles, with a retail value of nearly $34 million, at a port storage facility in New Jersey. Toyota Motor Corp. has said it might have lost as many as 4,500 new Toyota, Scion and Lexus vehicles to flooding and storm damage. American Honda Motor Co. said that more than 3,000 new vehicles at its dealers and storage yards suffered flood damage.

All this is going to create problems for consumers in the storm region who need to replace their rides quickly.

"Prices could really shoot up for consumers buying cars right away, because they will run into a severe inventory shortage," Banks said.

The dealers group believes that some replacement buying will start this month but will pick up in December and run through February. Banks expects that about 30% of buyers will purchase new cars and the remainder will choose used cars.

The buying, however, should provide a boost for the economy, said Edmunds.com Chief Economist Lacey Plache.

"Even if 100,000 damaged vehicles are replaced by the end of the year, it could boost auto sales 3% to 4% for the quarter," Plache said. "That has a positive effect on the economy overall."

jerry.hirsch@latimes.com





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Funeral for firefighter: 'We're a brotherhood'

Hundreds of firefighters from Chicago, the suburbs and other locations attend the wake of Herbert Johnson, a Chicago firefighter who was killed while battling a South Side house fire. (Phil Velasquez/Chicago Tribune)









Walking under a huge American flag hoisted by two ladder trucks, hundreds of firefighters in dress uniforms gathered this morning for the funeral of a colleague, Herbert "Herbie" Johnson, a 32-year veteran killed while battling an extra-alarm fire in a Gage Park home.

Crestwood Fire Chief Jon Bruce, 48, stood near a line of fire engines that stretched for nearly a block along Western Avenue near St. Rita of Cascia Shrine Chapel.

"We're a brotherhood," Bruce said as he shook hands with passing firefighters.

"He will be missed by many but forgotten by none," said Lt. Rick Colby, 55, of the 19th battalion, who was assigned to the same fire engine as Johnson the day he died. "It's a somber day for all of us."

Looking around at the thousands of firefighters and police, Tom Munizzi said he was not surprised by the show of support.

"Everyone knew Herbie," said Munizzi, 54, also in the 19th battalion. "It shows you how much he was loved."

The somber crowd grew silent as a pipe and drum corps started playing. They stood at attention, waiting for the funeral procession to begin. Purple ribbons were tied to the trees and light poles along the street in front of the church.

A day earlier, firefighters crowded into the same Southwest Side church for the wake, some standing outside for nearly an hour.








"Anybody who does our job, we have a mutual respect and connection with," Barrington firefighter Kyle Racina, who never met Johnson, said as he stood outside the visitation. "He made the ultimate sacrifice for the job."

The visitation continued through the afternoon and into the evening as a steady stream of mourners waited in a line that sometimes stretched into the parking lot of the Catholic church at 7740 S. Western Ave. Cars, including police vehicles and firetrucks from all over the Chicago region, packed the neighboring streets, which were backed up with traffic for hours.

Johnson's brother, Ted, who also is a Chicago firefighter, said the tragedy still seems surreal. His family is struggling to deal with the loss but grateful for the outpouring of support from across the country, he said.

"Tomorrow, I'm going to have to carry my brother's body to his grave," Johnson said. "But I'm going to have over 4,000 brothers and sisters right there with me."

Inside the chapel Wednesday, a line weaved in and out of the aisles as people chatted, cried and reminisced about Johnson and his large, tightknit family.

Pat Popek laughed as she recalled the time Johnson sported his grammar school basketball jersey at their 25th eighth-grade reunion.

"Believe me, it didn't fit him very well," she said with a smile. "But that was his personality."

A display of photos of Johnson — posing with his touch football team, spending time with his brothers and sisters, and marrying wife Susan — stood beside flowers arranged as firetrucks, footballs and a shamrock.

Johnson's widow greeted well-wishers as she stood next to the dark wooden casket containing the body of her husband, decked out in his dress uniform with a golden cross beside him. A medal for his heroism in the Fire Department also lay in the casket, which was adorned with pink roses.

"He would want us to celebrate his life, not his death," remarked Johnson's 18-year-old nephew, Thaddeus.

The eldest of eight, Johnson was always the leader in his family growing up, making sure his siblings did their homework and chores and stayed out of harm's way, said family friend John Jurcev, 78.

He enjoyed entertaining those around him and could find the good in a sad situation. Often, he spread his happiness with giant bearhugs, sometimes not realizing his own strength, Jurcev joked.

"He would be crushin' me, but I loved it," he said.

Relatives said they have received cards from schoolchildren from across Chicago. Some were on display inside the chapel.

Many of the notes offered prayers and support. That has meant a lot to Johnson's widow and three children, said Dan McMahon, Johnson's brother-in-law.

"They've helped their spirits get through this tragedy," he said.

Ted Johnson called his brother a great example for the city. It's a risk when firefighters leave for work every day, never knowing if they'll see their families again, he said.

"Tomorrow we'll bring him home," his brother said. "It's a great send-off for a true hero."

jmdelgado@tribune.com





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Exclusive: Google Ventures beefs up fund size to $300 million a year

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Read More..

NHL, union holding labor talks a 3rd straight day

NEW YORK (AP) — The NHL and the players' association resume negotiations Thursday afternoon, the third straight day the sides are meeting in an effort to end the lockout.

This is the 54th day of the lockout, and this week is considered critical for the hockey season to be saved.

Owners and players already have bargained for about 13 hours over two days this week at an undisclosed site in New York. Little information about the talks has been disclosed by either side.

This marks the fourth time in six days that face-to-face negotiations have taken place after both sides rejected proposals Oct. 18.

The lockout began Sept. 16 after the collective bargaining agreement expired. It has forced the cancellation of 327 regular-season games, including the New Year's Day Winter Classic in Michigan.

Read More..

Rihanna a rock star on Victoria’s Secret catwalk
















NEW YORK (AP) — Rihanna rocked lingerie at Wednesday night’s Victoria’s Secret fashion show in New York, providing the highlight of the live-music soundtrack and holding her own on the catwalk with some of the world’s top models.


And those models even had props, including Adriana Lima‘s ringmaster wand, Doutzen Kroes‘ body cage and several pairs of the oversized wings that the retailer has made its signature. It would be a close contest who got the biggest wings: Toni Garrn’s giant poppy pair or Miranda Kerr’s swan-style feathered pouf. Only Lily Aldridge could boast star-spangled wings that shot out silver sparkles.













Alessandra Ambrosio’s orchid-petal wings might have lacked a little grandeur, but she made up for it with a $ 2.5 million jeweled “floral fantasy bra.”


Still, wearing a sheer pink mini that gave glimpses of her bra, Rihanna sang “Fresh Out the Runway” at the end of the corset-and-garter parade and she was the one to grab the audience’s biggest applause.


The fashion show has become a pre-holiday season tradition for the retailer. CBS will turn it into a one-hour special, which also had performances from Justin Bieber and Bruno Mars, to be shown on Dec. 4.


Lima said she loved opening the show in the ringmaster costume. “The atmosphere of the Victoria’s Secret fashion show is electric,” she said. “It’s so much fun to be able to interact with the audience! What other show will you see Rihanna, Justin Beiber and Bruno Mars on the runway with angels?”


This year’s event had a slight twist. It started with an announcer noting that Victoria’s Secret and CBS had each made a donation to relief efforts for Superstorm Sandy, and a thank you to the National Guard members who are based out of the Lexington Avenue Armory that has for years been home to the show.


Mostly, though, models are encouraged to smile, ham it up and show off the extra time at the gym that most admit to in the weeks beforehand. “It’s highly televised, and you take that into consideration,” said model Joan Smalls ahead of the show. “This is kind of not the same as other runways. You have to prepare your body: No. 1 is the wings are heavy, and No. 2 is you have to be comfortable with your body because the camera will pick up on it if you’re not comfortable and confident.”


There’s an emphasis on glitz, skin and dramatic production here, not wearable undergarment trends for typical Victoria’s Secret shoppers. It was divided into six sections: Circus, complete with acrobats, contortionists and a sword eater; Dangerous Liaisons; Pink Is Us; Silver Screen Angels; Angels in Bloom; and Calendar Girls, which allowed Bruno Mars to serenade a model for each month of the year.


For his first song, “Beauty and the Beat,” Bieber, wearing low-slung white pants and a white leather studded vest, sat alone with his guitarist in the mellowest part of the show. For “As Long As You Love Me,” however, he brought in backup dancers and interacted with the models while moving around a giant makeshift pinball machine.


“It’s like a dream come true,” said Bieber on the pink carpet before the show. “I would rather be here than anywhere in the world.”


___


AP reporter John Carucci contributed to this report.


___


Samantha Critchell tweets fashion at http://www.twitter.com/AP_Fashion


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Experts raise concerns over superhuman workplace

LONDON (AP) — Performance-boosting drugs, powered prostheses and wearable computers are coming to an office near you — but experts warned in a new report Wednesday that too little thought has been given to the implications of a superhuman workplace.

Academics from Britain's leading institutions say attention needs to be focused on the consequences of technology which may one day allow — or compel — humans to work better, longer and harder. Here's their list of upgrades that might make their way to campuses and cubicles in the next decade:

BRAIN BOOSTERS

Barbara Sahakian, a Cambridge neuropsychology professor, cited research suggesting that 16 percent of U.S. students already use "cognitive enhancers" such as Ritalin to help them handle their course loads. Pilots have long used amphetamines to stay alert. And at least one study has suggested that the drug modafinil could help reduce the number of accidents experienced by shift workers.

But bioethicist Jackie Leach Scully of northern England's Newcastle University worries that the use of such drugs might focus on worker productivity over personal well-being.

"Being more alert for longer doesn't mean that you'll be less stressed by the job," she said. "It means that you'll be exposed to that stress for longer and be more awake while doing it."

WEARABLE COMPUTERS

The researchers also noted so-called "life-logging" devices like Nike Inc.'s distance-tracking shoes or wearable computers such as the eyeglasses being developed by Google Inc. The shoes can record your every step; the eyeglasses everything you see. Nigel Shadbolt, an expert in artificial Intelligence at southern England's University of Southampton, said such devices were as little as 15 years away from being able to record every sight, noise and movement over an entire human life.

So do you accept if your boss gives you one?

"What does that mean for employee accountability?" Shadbolt asked.

BIONIC LIMBS — AND BEYOND

The report also noted bionic limbs like the one used this week by amputee Zac Vawter to climb Chicago's Willis Tower or exoskeletons like the one used earlier this year by partially paralyzed London Marathon participant Claire Lomas. It also touched on the development of therapies aimed at sharpening eyesight or cochlear implants meant to enhance hearing.

Scully said any technology that could help disabled people re-enter the workforce should be welcomed but society needs to keep an eye out for unintended consequences.

"One of the things that we know about technology hitting society is that most of the consequences were not predicted ahead of time and a lot of things that we worry about ahead of time turn out not to be problems at all," she said. "We have very little idea of how these technologies will pan out."

THE PRESSURIZED WORKPLACE

The report was drawn up by scientists from The Academy of Medical Sciences, the British Academy, the Royal Academy of Engineering and the Royal Society.

"We're not talking science fiction here," said Genevra Richardson, the King's College law professor who oversaw the report. "These technologies could influence our ability to learn or perform tasks, they could influence our motivation, they could enable us to work in more extreme conditions or in old age, or they could facilitate our return to work after illness or disability .... Their use at work also raises serious ethical, political and economic questions."

Scully said workers may come under pressure to try a new memory-boosting drug or buy the latest wearable computer.

"In the context of a highly pressurized work environment, how free is the choice not to adopt such technologies?" she said.

Union representatives appeared taken aback by some of the experts' predictions. One expressed particular disquiet at the possibility raised by the report that long-distance truck drivers might be asked to take alertness drugs for safety reasons.

"We would be very, very against anything like that," said James Bower, a spokesman for Britain's United Road Transport Union. "We can't have a situation where a driver is told by his boss that he needs to put something in his body."

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Online:

The report: http://royalsociety.org/policy/projects/human-enhancement

Raphael Satter can be reached on: http://raphae.li/twitter

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Rihanna a rock star on Victoria's Secret catwalk

NEW YORK (AP) — Rihanna rocked lingerie at Wednesday night's Victoria's Secret fashion show in New York, providing the highlight of the live-music soundtrack and holding her own on the catwalk with some of the world's top models.

And those models even had props, including Adriana Lima's ringmaster wand, Doutzen Kroes' body cage and several pairs of the oversized wings that the retailer has made its signature. It would be a close contest who got the biggest wings: Toni Garrn's giant poppy pair or Miranda Kerr's swan-style feathered pouf. Only Lily Aldridge could boast star-spangled wings that shot out silver sparkles.

Alessandra Ambrosio's orchid-petal wings might have lacked a little grandeur, but she made up for it with a $2.5 million jeweled "floral fantasy bra."

Still, wearing a sheer pink mini that gave glimpses of her bra, Rihanna sang "Fresh Out the Runway" at the end of the corset-and-garter parade and she was the one to grab the audience's biggest applause.

The fashion show has become a pre-holiday season tradition for the retailer. CBS will turn it into a one-hour special, which also had performances from Justin Bieber and Bruno Mars, to be shown on Dec. 4.

Lima said she loved opening the show in the ringmaster costume. "The atmosphere of the Victoria's Secret fashion show is electric," she said. "It's so much fun to be able to interact with the audience! What other show will you see Rihanna, Justin Beiber and Bruno Mars on the runway with angels?"

This year's event had a slight twist. It started with an announcer noting that Victoria's Secret and CBS had each made a donation to relief efforts for Superstorm Sandy, and a thank you to the National Guard members who are based out of the Lexington Avenue Armory that has for years been home to the show.

Mostly, though, models are encouraged to smile, ham it up and show off the extra time at the gym that most admit to in the weeks beforehand. "It's highly televised, and you take that into consideration," said model Joan Smalls ahead of the show. "This is kind of not the same as other runways. You have to prepare your body: No. 1 is the wings are heavy, and No. 2 is you have to be comfortable with your body because the camera will pick up on it if you're not comfortable and confident."

There's an emphasis on glitz, skin and dramatic production here, not wearable undergarment trends for typical Victoria's Secret shoppers. It was divided into six sections: Circus, complete with acrobats, contortionists and a sword eater; Dangerous Liaisons; Pink Is Us; Silver Screen Angels; Angels in Bloom; and Calendar Girls, which allowed Bruno Mars to serenade a model for each month of the year.

For his first song, "Beauty and the Beat," Bieber, wearing low-slung white pants and a white leather studded vest, sat alone with his guitarist in the mellowest part of the show. For "As Long As You Love Me," however, he brought in backup dancers and interacted with the models while moving around a giant makeshift pinball machine.

"It's like a dream come true," said Bieber on the pink carpet before the show. "I would rather be here than anywhere in the world."

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AP reporter John Carucci contributed to this report.

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Samantha Critchell tweets fashion at http://www.twitter.com/AP_Fashion

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McDonald's sales drop, first time since 2003









McDonald's Corp. reported its first decline in monthly U.S. same store sales in nine years Thursday, as the chain began to suffer problems plaguing the rest of the fast food industry for several years.

Sales at restaurants open more than a year declined 2.2 percent. Same store sales also declined in Europe, 2.2 percent, and the Asia Pacific, Middle East and Africa region, 2.4 percent.

The chain cited lower demand and greater competition for the lower sales. While hamburger competitors Burger King and Wendy’s were walloped by the onset of the recession, both  have changed hands in recent years and launched new menu items that better compete with McDonald’s including expanded breakfast offerings, improved coffee options and more innovative salads.

"Though October's sales results reflect the pervasive challenges of today's global marketplace, I am confident that our strategies and the adjustments we are making in response to the current business headwinds will build sales momentum and drive sustained, profitable growth," McDonald's CEO Don Thompson said. 

Although the decline is historic for the world's largest restaurant chain, which has been on a roll since the beginning of its historic turnaround in 2003, it was not unexpected. Analysts have been tempering expectations and downgrading the stock for months.

To rev up sales, McDonald's has been working to emphasize value in markets around the world.

In the U.S., for example, McDonald's is stepping up advertising for its Dollar Menu after its attempt to market an "Extra Value Menu" for slightly higher prices fell flat. But the company said Thursday that the efforts were offset by "modest consumer demand" and competition.

In particular, McDonald's is facing stiffer competition from longtime rivals Burger King and Wendy's, which are both in the midst of reviving their brands with new ad campaigns and improved menus. Taco Bell, owned by Yum Brands Inc., is also enjoying growth with the help of new offerings such as it Doritos Locos Tacos and higher-end Cantina Bell bowls and burritos.





Stock slipped 0.99 percent in pre-market trades, to $86 in early trading. McDonald's hit an all-time high of $101.74 in February.

Baird analyst David Tarantino maintained an outperform rating on McDonald's, saying in a research note that, "We are cautiously optimistic that better trends can emerge as McDonald's gets past a wall of challenging comparisons in upcoming months."

Tarrantino added that though results "could remain soft" through early 2013, "we see opportunity for better performance to emerge in 2013 as a whole," because of emphasis on value offerings, lower ingredient costs, and reduced currency impact.

eyork@tribune.com | Twitter: @emilyyork

- Reuters contributed to this report

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Day after: Obama victory, but 'fiscal cliff' looms









Fresh from a decisive re-election win, President Barack Obama returns from the campaign trail on Wednesday with little time to savor victory, facing urgent economic challenges, a looming fiscal showdown and a still-divided Congress able to block his every move.

Obama defeated Republican challenger Mitt Romney on Tuesday night in a grueling presidential race and used his acceptance speech in front of a huge cheering crowd in Chicago to strike a conciliatory note toward his political opponents.

But in the cold light of the 2012 election's morning-after, it was clear that even though voters have endorsed a second Obama term, the president will have a hard time translating that into a mandate to push forward with his agenda.











Americans chose to preserve the status quo of divided government in Washington. Obama's fellow Democrats retained control of the Senate and Republicans kept their majority in the House of Representatives, giving them power to curb the president's legislative ambitions on everything from taxes to immigration reform.

This is the political reality that Obama - who won a far narrower victory over Romney than his historic election as the country's first black president in 2008 - faces when he returns to Washington later on Wednesday.

House Speaker John Boehner, R-Ohio, spoke of a dual mandate. "If there is a mandate, it is a mandate for both parties to find common ground and take steps together to help our economy grow and create jobs," he said.

Senate Republican Leader Mitch McConnell of Kentucky had a more harsh assessment.

"The voters have not endorsed the failures or excesses of the president's first term," McConnell said. "They have simply given him more time to finish the job they asked him to do together" with a balanced Congress.

Obama's more narrow victory was nothing like the jubilant celebration in 2008, when his hope-and-change election as the nation's first black president captivated the world. This time, Obama ground it out with a stay-the-course pitch that essentially boiled down to a plea for more time to make things right and a hope that Congress will be more accommodating than in the past.

The most pressing challenges immediately ahead for the 44th president are all too familiar: an economy still baby-stepping its way toward full health; 23 million people out of work or in search of better jobs; civil war in Syria; a menacing standoff over Iran's nuclear program.

Sharp differences with Republicans in Congress on taxes, spending, deficit reduction, immigration and more await. While Republicans control the House, Democrats have at least 52 votes in the Senate and Republicans 45. One newly elected independent isn't saying which party he'll side with, and races in Montana and North Dakota were not yet called.

Votes also were being counted Wednesday in the Montana and Washington gubernatorial races.

Obama's list of promises to keep includes many holdovers he was unable to deliver on in his first term, such as rolling back tax cuts for upper-income people, overhauling immigration policy and reducing federal deficits. Six in 10 voters said in exit polls that taxes should be increased, and nearly half of voters said taxes should be increased on incomes over $250,000, as Obama has called for.

"It's very clear from the exit polling that a majority of Americans recognize that we need to share responsibility for reducing the deficit," Maryland Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, told CNN. "That means asking higher-income earners to contribute more to reducing the deficit."

Even before Obama gets to his second inaugural on Jan. 20, he must deal with the threatened "fiscal cliff." A combination of a $600 billion package automatic of tax increases and steep across-the-board spending cuts are set to take effect in January if Washington doesn't quickly reach a budget deal. Experts have warned that the economy could tip back into recession without an agreement.

Newly elected Democrats signaled they want compromise the avoid the fiscal cliff.

Sen.-elect Tim Kaine, a former Virginia governor who defeated Republican George Allen, said on NBC's "Today" show that voters sent a message they want "cooperative government." But he also says the election results show that the public doesn't want "all the levers in one party's hands" on Capitol Hill.

From Massachusetts, Elizabeth Warren said on "CBS This Morning" that those who voted for her opponent, Republican Sen. Scott Brown, expressed a desire for lawmakers to work together. She says: "I heard that loud and clear."

December surprise?

Investors have had a tendency to downplay problems emanating from Washington only to find themselves surprised when lawmakers cannot get together on critical issues.

The market reacted harshly to Washington gridlock after failed legislation to backstop the banks in 2008 and again during protracted talks to raise the U.S. debt ceiling in 2011. Strategists said a re-elected Obama would be keen to avoid another bruising repeat.





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End in sight? NHL, players bargain deep into night

NEW YORK (AP) — The NHL and the players' association did all their talking at the bargaining table, far away from the public eye. With another round of talks scheduled just one day after more than seven hours of negotiations, perhaps progress is being made.

There was already common ground before negotiations on a new collective bargaining agreement began Tuesday and lasted deep into the night. The players' union adhered to the league's request to keep the meeting location in New York a secret, and with no outside distractions, the sides talked and talked from afternoon until night.

Once they broke for the day, neither side gave any hint of what was discussed or if progress was made, but both pointed to the next round of talks.

"With meetings scheduled to resume Wednesday, the league will not characterize the substance or detail of the discussions until their conclusion," NHL deputy commissioner Bill Daly said in a statement.

The marathon session highlighted Day 52 of the lockout and provided at least a glimmer of hope that maybe it will end soon.

Daly and union special counsel Steve Fehr, who conducted a long one-on-one session on Saturday, were joined on Tuesday by Commissioner Gary Bettman, NHLPA executive director Donald Fehr, a handful of team owners, and 13 players including Pittsburgh Penguins captain Sidney Crosby, who has been an active participant in the process.

The union did its talking Tuesday before negotiations began.

"We're hopeful that we'll start bargaining and we'll continue bargaining until we find a way to make a deal," Donald Fehr said early Tuesday afternoon. "Sometimes that goes in rather long sessions with short breaks and sometimes you take a few hours or half a day or a day to work on things before you come back together. I don't know which it will be.

"We certainly hope we'll be continuing to meet on a regular basis. I hope they do, too. I'm just not making any predictions."

His hope was met — at least for one day.

Fehr's brother, Steve, met with Daly on Saturday in a secret location, and neither provided many details of what was discussed, but both agreed that the meeting was productive. That was proven when the sides agreed to quickly meet again Tuesday. Until Saturday, there had been no negotiations since talks broke off Oct. 18.

"The players' view has always been to keep negotiating until we find a way to get agreement and you sort of stay at it day by day, so it's very good to be getting back to the table," Donald Fehr said. "We hope that this time it produces more progress than we've seen in the past, and that we can find a way to make an agreement and to get the game back on the ice as soon as possible.

"We're hopeful that we'll start bargaining and we'll continue bargaining until we find a way to make a deal."

Time is becoming a bigger factor every day a deal isn't reached. The lockout, which went into effect Sept. 16 after the previous collective bargaining agreement expired, has already forced the cancellation of 327 regular-season games — including the New Year's Day outdoor Winter Classic in Michigan.

Whether any of the games that have been called off through Nov. 30 can be rescheduled if an agreement is made soon hasn't been determined. But the NHL has already said that a full 82-game season won't be played.

Back in October, the players' association responded to an NHL offer with three of its own, but all of those were quickly dismissed by the league — leading to nearly three weeks without face-to-face discussions. Daly and Steve Fehr kept in regular contact by phone and agreed to meet again last weekend.

The NHL has moved toward the players' side in the contentious issue of the "make-whole" provision, which involves the payment of player contracts that are already in effect and whose share of the economic pie that money will come from.

Other core economic issues — mainly the split of hockey-related revenue — along with contract lengths, arbitration and free agency will also need to be agreed upon before a deal can be reached.

The players' association accepted a salary cap in the previous CBA, which wasn't reached until after the entire 2004-05 season was canceled because of a lockout. The union doesn't want to absorb the majority of concessions this time after the NHL recorded record revenue that exceeded $3 billion last season.

"The issues the players are concerned about remain the same," Donald Fehr said. "The players haven't seen any need to go backward, given the history of the last negotiations and given the level of revenue increase since then. Player-contracting rights are very important to them.

"Before we have any agreement, both sides have to see everything on paper and make sure that they all understand it right. That's about all I can say about it at this stage. I don't want to prejudge or indicate that I have any particular impressions or expectations. That's what the meetings are for."

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