Boeing Closer to Answer on 787s, but Not to Getting Them Back in Air

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Issei Kato/Reuters


Safety inspectors looked over a 787 on Friday in Japan. The plane made an emergency landing after receiving a smoke alarm.







With 787 Dreamliners grounded around the world, Boeing is scrambling to devise a technical fix that would allow the planes to fly again soon, even as investigators in the United States and Japan are trying to figure out what caused the plane’s lithium-ion batteries to overheat.




Ray LaHood, the transportation secretary, made it clear on Friday that a rapid outcome was unlikely, saying that 787s would not be allowed to fly until the authorities were “1,000 percent sure” they were safe.


“Those planes aren’t flying now until we have a chance to examine the batteries,” Mr. LaHood told reporters. “That seems to be where the problem is.”


The Federal Aviation Administration on Wednesday took the rare step of grounding Boeing’s technologically advanced 787s after a plane in Japan made an emergency landing when one of its two lithium-ion batteries set off a smoke alarm in the cockpit. Last week at Boston’s Logan Airport, a battery ignited in a parked 787.


The last time the government grounded an entire fleet of airplanes was in 1979, after the crash of a McDonnell Douglas DC-10.


The grounding comes as the United States is going through a record stretch of safe commercial jet flying: It has been nearly four years since a fatal airline crash, with nearly three billion passengers flying in that period. The last airliner crash, near Buffalo, came after a quiet period of two and a half years, which suggests a declining crash rate.


Investigators in Japan said Friday that a possible explanation for the problems with the 787’s batteries was that they were overcharged — a hazard that has long been a concern for lithium-ion batteries. But how that could have happened to a plane that Boeing says has multiple systems to prevent such an event is still unclear.


Given the uncertainty, it will be hard for federal regulators to approve any corrective measures proposed by Boeing. To lift the grounding order, Boeing must demonstrate that any fix it puts in place would prevent similar episodes from happening.


The government’s approach, while prudent, worries industry officials who fear it does not provide a rapid exit for Boeing.


The F.A.A. typically sets a course of corrective action for airlines when it issues a safety directive. But in the case of the 787, the government’s order, called an emergency airworthiness directive, required that Boeing demonstrate that the batteries were safe but did not specify how.


While the government and the plane maker are cooperating, there are few precedents for the situation.


“Everyone wants the airplane back in the air quickly and safely,” said Mark V. Rosenker, a former chairman of the National Transportation Safety Board. “But I don’t believe there will be a corner cut to accomplish that. It will happen when all are confident they have a good solution that will contain a fire or a leak.”


Boeing engineers, Mr. Rosenker said, are working around the clock. “I bet they have cots and food for the engineers who are working on this,” he said. “They have produced a reliable and safe aircraft and as advanced as it is, they don’t want to put airplanes in the air with the problems we have seen.”


The government approved Boeing’s use of lithium-ion batteries to power some of the plane’s systems in 2007, but special conditions were imposed on the plane maker to ensure the batteries would not overheat or ignite. Government inspectors also approved Boeing’s testing plans for the batteries and were present when they were performed.


Even so, after the episode in Boston, the federal agency said it would review the 787’s design and manufacturing with a focus on the electrical systems and batteries. The agency also said it would review the certification process.


The 787 has more electrical systems than previous generations of airplanes. These systems operate hydraulic pumps, de-ice the wings, pressurize the cabin and handle other tasks. The plane also has electric brakes instead of hydraulic ones. To run these systems, the 787 has six generators with a capacity equivalent to the power needed by 400 homes.


Nicola Clark and Christopher Drew contributed reporting.



This article has been revised to reflect the following correction:

Correction: January 19, 2013

An earlier version of this article misstated the response of regulators after small cracks were found in the wings of the Airbus A380, and the year those cracks were found. Regulators required inspections, followed by fixes; they did not order the plane grounded. And the discovery was made in 2012, not two years ago.



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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control

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Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”


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Personal Health: That Loving Feeling Takes a Lot of Work

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When people fall in love and decide to marry, the expectation is nearly always that love and marriage and the happiness they bring will last; as the vows say, till death do us part. Only the most cynical among us would think, walking down the aisle, that if things don’t work out, “We can always split.”

But the divorce rate in the United States is half the marriage rate, and that does not bode well for this cherished institution.

While some divorces are clearly justified by physical or emotional abuse, intolerable infidelity, addictive behavior or irreconcilable incompatibility, experts say many severed marriages seem to have just withered and died from a lack of effort to keep the embers of love alive.

Jane Brody speaks about love and marriage.


I say “embers” because the flame of love — the feelings that prompt people to forget all their troubles and fly down the street with wings on their feet — does not last very long, and cannot if lovers are ever to get anything done. The passion ignited by a new love inevitably cools and must mature into the caring, compassion and companionship that can sustain a long-lasting relationship.

Studies by Richard E. Lucas and colleagues at Michigan State University have shown that the happiness boost that occurs with marriage lasts only about two years, after which people revert to their former levels of happiness — or unhappiness.

Infatuation and passion have even shorter life spans, and must evolve into “companionate love, composed more of deep affection, connection and liking,” according to Sonja Lyubomirsky, a professor of psychology at the University of California, Riverside.

In her new book, “The Myths of Happiness,” Dr. Lyubomirsky describes a slew of research-tested actions and words that can do wonders to keep love alive.

She points out that the natural human tendency to become “habituated” to positive circumstances — to get so used to things that make us feel good that they no longer do — can be the death knell of marital happiness. Psychologists call it “hedonic adaptation”: things that thrill us tend to be short-lived.

So Dr. Lyubomirsky’s first suggestion is to adopt measures to avert, or at least slow down, the habituation that can lead to boredom and marital dissatisfaction. While her methods may seem obvious, many married couples forget to put them into practice.

Building Companionship

Steps to slow, prevent or counteract hedonic adaptation and rescue a so-so marriage should be taken long before the union is in trouble, Dr. Lyubomirsky urges. Her recommended strategies include making time to be together and talk, truly listening to each other, and expressing admiration and affection.

Dr. Lyubomirsky emphasizes “the importance of appreciation”: count your blessings and resist taking a spouse for granted. Routinely remind yourself and your partner of what you appreciate about the person and the marriage.

Also important is variety, which is innately stimulating and rewarding and “critical if we want to stave off adaptation,” the psychologist writes. Mix things up, be spontaneous, change how you do things with your partner to keep your relationship “fresh, meaningful and positive.”

Novelty is a powerful aphrodisiac that can also enhance the pleasures of marital sex. But Dr. Lyubomirsky admits that “science has uncovered precious little about how to sustain passionate love.” She likens its decline to growing up or growing old, “simply part of being human.”

Variety goes hand in hand with another tip: surprise. With time, partners tend to get to know each other all too well, and they can fall into routines that become stultifying. Shake it up. Try new activities, new places, new friends. Learn new skills together.

Although I’ve been a “water bug” my whole life, my husband could swim only as far as he could hold his breath. We were able to enjoy the water together when we both learned to kayak.

“A pat on the back, a squeeze of the hand, a hug, an arm around the shoulder — the science of touch suggests that it can save a so-so marriage,” Dr. Lyubomirsky writes. “Introducing more (nonsexual) touching and affection on a daily basis will go a long way in rekindling the warmth and tenderness.”

She suggests “increasing the amount of physical contact in your relationship by a set amount each week” within the comfort level of the spouses’ personalities, backgrounds and openness to nonsexual touch.

Positive Energy

A long-married friend recently told me that her husband said he missed being touched and hugged. And she wondered what the two of them would talk about when they became empty-nesters. Now is the time, dear friend, to work on a more mutually rewarding relationship if you want your marriage to last.

Support your partner’s values, goals and dreams, and greet his or her good news with interest and delight. My husband’s passion lay in writing for the musical theater. When his day job moved to a different city, I suggested that rather than looking for a new one, he pursue his dream. It never became monetarily rewarding, but his vocation fulfilled him and thrilled me. He left a legacy of marvelous lyrics for more than a dozen shows.

Even a marriage that has been marred by negative, angry or hurtful remarks can often be rescued by filling the home with words and actions that elicit positive emotions, psychology research has shown.

According to studies by Barbara L. Fredrickson, a social psychologist and professor at the University of North Carolina at Chapel Hill, a flourishing relationship needs three times as many positive emotions as negative ones. In her forthcoming book, “Love 2.0,” Dr. Fredrickson says that cultivating positive energy everyday “motivates us to reach out for a hug more often or share and inspiring or silly idea or image.”

Dr. Lyubomirsky reports that happily married couples average five positive verbal and emotional expressions toward one another for every negative expression, but “very unhappy couples display ratios of less than one to one.”

To help get your relationship on a happier track, the psychologist suggests keeping a diary of positive and negative events that occur between you and your partner, and striving to increase the ratio of positive to negative.

She suggests asking yourself each morning, “What can I do for five minutes today to make my partner’s life better?” The simplest acts, like sharing an amusing event, smiling, or being playful, can enhance marital happiness.

This post has been revised to reflect the following correction:

Correction: January 18, 2013

The Personal Health column on Tuesday, about making marriages last, misspelled the given name of a professor of psychology at the University of California, Riverside, who studies happiness. She is Sonja Lyubomirsky, not Sonya.

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With Graph Search, Facebook Bets on More Sharing

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SAN FRANCISCO — Facebook’s greatest triumph has been to persuade a seventh of the world’s population to share their personal lives online.


Now the social network is taking on its archrival, Google, with a search tool to mine that personal information, just as people are growing more cautious about sharing on the Internet and even occasionally removing what they have already put up.


Whether Facebook’s more than one billion users will continue to divulge even more private details will determine whether so-called social search is the next step in how we navigate the online world. It will also determine whether Facebook has found a business model that will make it a lot of money.


“There’s a big potential upside for both Facebook and users, but getting people to change their behaviors in relation to what they share will not be easy,” said Andrew T. Stephen, who teaches marketing at the University of Pittsburgh and studies consumer behavior on online social networks.


This week, Facebook unveiled its search tool, which it calls graph search, a reference to the network of friends its users have created. The company’s algorithms will filter search results for each person, ranking the friends and brands that it thinks a user would trust the most. At first, it will mine users’ interests, photos, check-ins and “likes,” but later it will search through other information, including status updates.


“While the usefulness of graph search increases as people share more about their favorite restaurants, music and other interests, the product doesn’t hinge on this,” a Facebook spokesman, Jonathan Thaw, said.


Nevertheless, the company engineers who created the tool — former Google employees — say that the project will not reach its full potential if Facebook data is “sparse,” as they call it. But the company is confident people will share more data, be it the movies they watch, the dentists they trust or the meals that make their mouths water.


The things people declare on Facebook will be useful, when someone searches for those interests, Tom Stocky, one of the creators of Facebook search, said in an interview this week. Conversely, by liking more things, he said, people will become more useful in the eyes of their friends.


“You might be inclined to ‘like’ what you like so when your friends search, they’ll find it,” he said. “I probably would never have liked my dentist on Facebook before, but now I do because it’s a way of letting my friends know.”


Mr. Stocky offered these examples of how more information may be desirable: A single man may want to be discovered when a friend of a friend is searching for eligible bachelors in San Francisco or a restaurant that stays open late may want to be found by a night owl.


“People have shared all this great stuff on Facebook,” Mr. Stocky said. “It’s latent value. We wanted a way to unlock that.”


Independent studies suggest that Facebook users are becoming more careful about how much they reveal online, especially since educators and employers typically scour Facebook profiles.


A Northwestern University survey of 500 young adults in the summer of 2012 found that the majority avoided posting status updates because they were concerned about who would see them. The study also found that many had deleted or blocked contacts from seeing their profiles and nearly two-thirds had untagged themselves from a photo, post or check-in.


“These behavioral patterns seem to suggest that many young adults are less keen on sharing at least certain details about their lives rather than more,” said Eszter Hargittai, an associate professor of communication studies at Northwestern, who led the yet unpublished study among men and women aged 21 and 22.


Also last year, the Pew Internet Center found that social network users, including those on Facebook, were more aggressively pruning their profiles — untagging photos, removing friends and deleting comments.


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The Lede Blog: Bulgarian Politician Faces Off With Gunman During Televised Conference

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A man climbed onstage and attempted to fire a gas pistol Saturday at the leader of the country’s ethnic Turkish political party while he was giving a speech at his party’s annual conference in Sofia, the capital of Bulgaria.

The gun misfired, according to a BBC report citing Bulgarian officials, and Ahmed Dogan, the leader of the Movement for Rights and Freedoms, was not harmed. Video of the incident shows Mr. Dogan pushing the gunman’s hand, then diving away as other people at the conference wrestle the man to the floor, then punch and kick him repeatedly. The gun, a small gas pistol, lies nearby at the feet of shocked onlookers.

“A gas pistol is a nonlethal weapon used for self-defense,” The Associated Press reported, “but experts say when fired from close range it can cause life-threatening injuries.”

The gunman was arrested, the news agency said, identifying him as “25-year-old Oktai Enimehmedov, a Bulgarian national and ethnic Turk, from the coastal city of Burgas.” The motive for the attack was not immediately clear. The report said the assailant was also carrying two knives.

Mr. Dogan’s party represents ethnic Turks and other Muslims, according to Reuters, who make up “12 percent of Bulgaria’s 7.3 million-strong population.”

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The Lede: Live Blog: Inside the Fed's 2007 Deliberations

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On Friday the Federal Reserve released the transcripts of its discussions in 2007, the year the housing market, the financial markets, and the broader economy began to unravel. Reporters from The Times are sharing their findings on what the transcripts reveal in the blog entries and tweets below.
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Flu Season ‘Worse Than Average,’ Officials Say

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This year’s flu season is shaping up to be “worse than average and particularly bad for the elderly,” Dr. Thomas R. Frieden, the nation’s top federal disease-control official, said Friday.




But the season appears to have peaked, added Dr. Frieden, the director of the Centers for Disease Control and Prevention, with new cases declining over most of the nation except for the far West.


Spot shortages of flu vaccine and flu-fighting medicine are occurring, but that reflects uneven distribution, not a supply crisis, federal officials said. They urged people seeking flu shots to consult flu.gov and doctors to check preventinfluenza.org for suppliers.


Vaccine-makers will ultimately be able to deliver 145 million doses, 10 million more than projected earlier, the officials said. The Food and Drug Administration has allowed the maker of Tamiflu to release 2 million doses it had in storage.


The older Tamiflu is perfectly good, said Dr. Margaret A. Hamburg, the commissioner of the F.D.A., who joined Dr. Frieden on a telephone news conference. “It’s not outdated, it just has older labeling,” she said. “Repackaging it would take weeks,” she added, so her agency told the company not to bother.


Weekly recorded deaths from flu and pneumonia are still rising, and are well above the “epidemic” curve for the first time. But how severe a season ultimately proves depends on how long high weekly death rates persists. Flu deaths often aren’t recorded until March or April, well after new infections taper off.


Dr. Frieden said the season appeared to resemble the “moderately severe” season of 2003-2004, which also had an early start and was dominated by an H3N2 strain. In such seasons, 90 percent of all deaths occur among those over 65. Flu hospitalization rates are “quite high” now, Dr. Frieden said, and most of those hospitalized are elderly.


Last year’s flu season was unusually mild. At the end of the season last year, 34 children had died.


So far this year, the C.D.C.'s count of pediatric flu deaths, which includes premature infants and teenagers up to age 17 — has risen to 29, although this is acknowledged to be an undercount as it is only of lab-confirmed influenza cases reported to the agency.


Henry L. Niman, a flu-watcher who follows state death registries and news reports, counts about 40 pediatric deaths so far and predicted that the total would ultimately be close to the 153 of the 2003-04 season, but much less than in the 2009-2010 “swine flu” pandemic, when 282 children died. That flu was a strain never seen before and many more children caught it. The elderly had surprising resistance to getting it, presumably because similar flus that circulated 40 or more years ago had given them some immunity. But among those elderly who did catch it, the death rates were high.


Dr. Frieden suggested that the elderly avoid contact with sick children. “Having a grandparent baby-sit a sick child may not be a good idea,” he said.


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Flu Season ‘Worse Than Average,’ Officials Say

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This year’s flu season is shaping up to be “worse than average and particularly bad for the elderly,” Dr. Thomas R. Frieden, the nation’s top federal disease-control official, said Friday.




But the season appears to have peaked, added Dr. Frieden, the director of the Centers for Disease Control and Prevention, with new cases declining over most of the nation except for the far West.


Spot shortages of flu vaccine and flu-fighting medicine are occurring, but that reflects uneven distribution, not a supply crisis, federal officials said. They urged people seeking flu shots to consult flu.gov and doctors to check preventinfluenza.org for suppliers.


Vaccine-makers will ultimately be able to deliver 145 million doses, 10 million more than projected earlier, the officials said. The Food and Drug Administration has allowed the maker of Tamiflu to release 2 million doses it had in storage.


The older Tamiflu is perfectly good, said Dr. Margaret A. Hamburg, the commissioner of the F.D.A., who joined Dr. Frieden on a telephone news conference. “It’s not outdated, it just has older labeling,” she said. “Repackaging it would take weeks,” she added, so her agency told the company not to bother.


Weekly recorded deaths from flu and pneumonia are still rising, and are well above the “epidemic” curve for the first time. But how severe a season ultimately proves depends on how long high weekly death rates persists. Flu deaths often aren’t recorded until March or April, well after new infections taper off.


Dr. Frieden said the season appeared to resemble the “moderately severe” season of 2003-2004, which also had an early start and was dominated by an H3N2 strain. In such seasons, 90 percent of all deaths occur among those over 65. Flu hospitalization rates are “quite high” now, Dr. Frieden said, and most of those hospitalized are elderly.


Last year’s flu season was unusually mild. At the end of the season last year, 34 children had died.


So far this year, the C.D.C.'s count of pediatric flu deaths, which includes premature infants and teenagers up to age 17 — has risen to 29, although this is acknowledged to be an undercount as it is only of lab-confirmed influenza cases reported to the agency.


Henry L. Niman, a flu-watcher who follows state death registries and news reports, counts about 40 pediatric deaths so far and predicted that the total would ultimately be close to the 153 of the 2003-04 season, but much less than in the 2009-2010 “swine flu” pandemic, when 282 children died. That flu was a strain never seen before and many more children caught it. The elderly had surprising resistance to getting it, presumably because similar flus that circulated 40 or more years ago had given them some immunity. But among those elderly who did catch it, the death rates were high.


Dr. Frieden suggested that the elderly avoid contact with sick children. “Having a grandparent baby-sit a sick child may not be a good idea,” he said.


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DealBook: Michael Dell’s Empire in a Buyout Spotlight

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The computer empire of Michael S. Dell spreads across a campus of low-slung buildings in Round Rock, Tex.

But his financial empire — estimated at $16 billion — occupies the 21st floor of a dark glass skyscraper on Fifth Avenue in Manhattan.

It is there that MSD Capital, started by Mr. Dell 15 years ago to manage his fortune, has quietly built a reputation as one of the smartest investors on Wall Street. By amassing a prodigious portfolio of stocks, companies, real estate and timberland, Mr. Dell has reduced his exposure to the volatile technology sector and branched out into businesses as diverse as dentistry and landscaping.

Now, Mr. Dell is on the verge of making one of the biggest investments of his life. The 47-year-old billionaire and his private equity backers are locked in talks to acquire Dell, the company he started with $1,000 as a teenager three decades ago, in a leveraged buyout worth more than $20 billion. MSD could play a role in the Dell takeover, according to people briefed on the deal.

The private equity firm Silver Lake has been in negotiations to join with Mr. Dell on a transaction, along with other potential partners like wealthy Asian investors or foreign funds. Mr. Dell would be expected to roll his nearly 16 percent ownership of the company into the buyout, a stake valued at about $3.5 billion. He could also contribute additional personal money as part of the buyout.

That money is managed by MSD, among the more prominent so-called family offices that are set up to handle the personal investments of the wealthy. Others with large family offices include Bill Gates, whose Microsoft wealth financed the firm Cascade Investment, and New York’s mayor, Michael R. Bloomberg, who set up his firm, Willett Advisors, in 2010 to manage his personal and philanthropic assets.

“Some of these family offices are among the world’s most sophisticated investors and have the capital and talent to compete with the largest private equity firms and hedge funds,” said John P. Rompon, managing partner of McNally Capital, which helps structure private equity deals for family offices.

A spokesman for MSD declined to comment for this article. The buyout talks could still fall apart.

In 1998, Mr. Dell, then just 33 years old — and his company’s stock worth three times what it is today — decided to diversify his wealth and set up MSD. He staked the firm with $400 million of his own money, effectively starting his own personal money-management business.

To head the operation, Mr. Dell hired Glenn R. Fuhrman, a managing director at Goldman Sachs, and John C. Phelan, a principal at ESL Investments, the hedge fund run by Edward S. Lampert. He knew both men from his previous dealings with Wall Street. Mr. Fuhrman led a group at Goldman that marketed specialized investments like private equity and real estate to wealthy families like the Dells. And Mr. Dell was an early investor in Mr. Lampert’s fund.

Mr. Fuhrman and Mr. Phelan still run MSD and preside over a staff of more than 100 overseeing Mr. Dell’s billions and the assets in his family foundation. MSD investments include a stock portfolio, with positions in the apparel company PVH, owner of the Calvin Klein and Tommy Hilfiger brands, and DineEquity, the parent of IHOP and Applebee’s.

Among its real estate holdings are the Four Seasons Resort Maui in Hawaii and a stake in the New York-based developer Related Companies.

MSD also has investments in several private businesses, including ValleyCrest, which bills itself as the country’s largest landscape design company, and DentalOne Partners, a collection of dental practices.

Perhaps MSD’s most prominent deal came in 2008, in the middle of the financial crisis, when it joined a consortium that acquired the assets of the collapsed mortgage lender IndyMac Bank from the federal government for about $13.9 billion and renamed it OneWest Bank.

The OneWest purchase has been wildly successful. Steven Mnuchin, a former Goldman executive who led the OneWest deal, has said that the bank is expected to consider an initial public offering this year. An I.P.O. would generate big profits for Mr. Dell and his co-investors, according to people briefed on the deal.

Another arm of MSD makes select investments in outside hedge funds. Mr. Dell invested in the first fund raised by Silver Lake, the technology-focused private equity firm that might now become his partner in taking Dell private.
MSD’s principals have already made tidy fortunes. In 2009, Mr. Fuhrman, 47, paid $26 million for the Park Avenue apartment of the former Lehman Brothers chief executive Richard S. Fuld. Mr. Phelan, 48, and his wife, Amy, a former Dallas Cowboys cheerleader, also live in a Park Avenue co-op and built a home in Aspen, Colo.

Both are influential players on the contemporary art scene, with ARTNews magazine last year naming each of them among the world’s top 200 collectors. MSD, too, has dabbled in the visual arts. In 2010, MSD bought an archive of vintage photos from Magnum, including portraits of Marilyn Monroe and Mahatma Gandhi, and has put the collection on display at the University of Texas, Mr. Dell’s alma mater.

Just as the investment firms Rockefeller & Company (the Rockefellers, diversifying their oil fortune) and Bessemer Trust (the Phippses, using the name of the steelmaking process that formed the basis of their wealth) started out as investment vehicles for a single family, MSD has recently shown signs of morphing into a traditional money management business with clients beside Mr. Dell.

Last year, for the fourth time, an MSD affiliate raised money from outside investors when it collected about $1 billion for a stock-focused hedge fund, MSD Torchlight Partners. A 2010 fund investing in distressed European assets also manages about $1 billion. The Dell family is the anchor investor in each of the funds, according to people briefed on the investments.

MSD has largely remained below the radar, though its name emerged a decade ago in the criminal trial of the technology banker Frank Quattrone on obstruction of justice charges. Prosecutors introduced an e-mail that Mr. Fuhrman sent to Mr. Quattrone during the peak of the dot-com boom in which he pleaded for a large allotment of a popular Internet initial public offering.

“We know this is a tough one, but we wanted to ask for a little help with our Corvis allocation,” Mr. Fuhrman wrote. “We are looking forward to making you our ‘go to’ banker.”

The e-mail, which was not illegal, was meant to show the quid pro quo deals that were believed to have been struck between Mr. Quattrone and corporate chieftains like Mr. Dell — the bankers would give executives hot I.P.O.’s and the executives, in exchange, would hold out the possibility of giving business to the bankers. (Mr. Quattrone’s conviction was reversed on appeal.)

The MSD team has also shown itself to be loyal to its patron in other ways.

On the MSD Web site, in the frequently asked questions section, the firm asks and answers queries like “how many employees do you have” and “what kind of investments do you make.”

In the last question on the list, MSD asks itself, “Do you use Dell computer equipment?” The answer: “Exclusively!”

Michael J. de la Merced contributed reporting.

This post has been revised to reflect the following correction:

Correction: January 18, 2013

An earlier version of this article misstated when an energy hedge fund raised money from outside investors. It was in 2011, not earlier this year.

A version of this article appeared in print on 01/18/2013, on page B1 of the NewYork edition with the headline: Michael Dell’s Empire In a Buyout Spotlight.
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As Rescue Operation Continues in Algeria, Fate of Hostages Remains Unclear

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British Petroleum, via European Pressphoto Agency


The remote In Amenas natural gas field in Algeria, the site of a terrorist attack and the taking of hostages on Wednesday.







BAMAKO, Mali — Dozens of foreign hostages may still be held by Islamist extremists who have defied demands to surrender in a besieged Algerian gas-field complex, Algeria’s state-run news agency reported Friday, and the United States said for the first time that American citizens were among them.




Twelve Algerian and foreign workers have been killed since Algerian special forces began an assault against the kidnappers, the state news agency reported, citing an unnamed security official. It was the highest civilian death toll Algerian officials have provided in the aftermath of the assault, which freed captives and killed kidnappers but also left some hostages dead.


The Algerian news agency has said that the country’s special forces were still seeking to reach a “peaceful solution” with the remnants of a “terrorist group” that was still holding hostages in the refinery area of the gas field in remote eastern Algeria. It also gave a new sense of how many people may have been at the facility when the militants seized it on Wednesday, asserting that nearly 650 had managed to leave the site since then, including 573 Algerians and most of the 132 foreigners it said had been abducted.


But that still left many people unaccounted for, adding to the global concern about the fate of the hostages, who come from as many as 10 different nations. Previous estimates of the foreign casualties have ranged from 4 to 35.


In Washington, the State Department spokeswoman, Victoria Nuland, said that not all Americans had been freed and that Secretary of State Hillary Rodham Clinton had spoken for the third consecutive day by telephone with top Algerian leaders about American concerns for their safety.


“We have American hostages,” Ms. Nuland told reporters, offering the government’s first update on what is known about the Americans since officials confirmed on Thursday that seven or Americans had been inside the gas-field complex.


Ms. Nuland also rebuffed a reported offer made by the kidnappers to exchange two Americans for two prominent figures imprisoned in the United States — Omar Abdel Rahman, a sheik convicted of plotting to bomb New York landmarks, and Aafia Siddiqui, a Pakistani woman convicted of shooting two American soldiers in Afghanistan. It was impossible to confirm that offer, which was reported by the Washington-based SITE Intelligence Group, a service that tracks jihadist activity on the Internet.


Intensifying the uncertainties, a spokesman for the militants, who belong to a group called Al Mulathameen, said Friday that they planned further attacks in Algeria, according to a report by the Mauritanian news agency ANI, which maintains frequent contact with militant groups in the region. The spokesman called upon Algerians to “keep away from the installations of foreign companies, because we will suddenly attack where no one would expect it,” ANI reported.


A Pentagon official said an Air Force C-130 had left Algeria for an unidentified base in Europe, carrying a number of the rescued hostages but no Americans. The official said a second, larger evacuation plane, a C-17, was still on the ground in Algeria, and it was unclear how many rescued hostages would be boarded or when it would depart.


A separate hostage situation of sorts appeared to be evolving at a village in Mali, the neighboring country where a French military intervention to stop radical Islamists may have been the catalyst for the Algerian gas-field seizure by the Al Mulathameen group.


A senior French official in Paris said Malian Islamist fighters, threatened by French and Malian soldiers, had occupied the village, Diabaly, and were threatening to use residents as human shields if attacked.


“We do not want a blood bath,” the French official said, and the troop commanders had chosen not to engage so far in house-to-house fighting.


The Algerian military operation at the gas field began on Thursday without consultation with the foreign governments whose citizens worked at the gas field facility. It has been marked by a fog of conflicting reports, compounded by the remoteness of the facility, near a town called In Amenas hundreds of miles across the desert from the Algerian capital, Algiers, and close to the Libyan border.


Algeria’s state radio, citing an official source, reported on Friday that 18 militants had been killed, the first precise death count offered by state media. The state news agency also suggested that hundreds of civilians “had been freed,” though many of the employees inside the sprawling facility may have simply been on site at the time of the militant assault and were not necessarily being held by the kidnappers.


Adam Nossiter reported from Bamako and Alan Cowell and Scott Sayare from Paris. Reporting was contributed by Rick Gladstone from New York; Elisabeth Bumiller, Julia Werdigier and John F. Burns from London;Steven Erlanger from Paris, Eric Schmitt, Thom Shanker, David E. Sanger and Michael R. Gordon from Washington; Martin Fackler and Hiroko Tabuchi from Tokyo; and Mayy El Sheikh from Cairo.



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With Debt to Sell, Troubled Euro Nations Find Willing Buyers

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MADRID — January is turning out to be a bumper month for Spain and some of the euro zone economies most in need of debt financing, with governments and companies flooding the market with bonds that have sold at significantly lower interest rates than just a few months ago.




On Thursday, the Spanish Treasury sold €4.5 billion, or $5.9 billion, of debt, including bonds with a maturity of as much as 28 years. The average interest rate paid by Madrid on two-year bonds was 2.71 percent, down from 3.36 percent in December — a level not reached since March of last year.


The interest rate on the benchmark 10-year Spanish bond stood at 5.03 percent Thursday. Last year that rate spiked above 7 percent — a level that many economists believe places an unsustainable burden on governments.


Higher interest rates make it not only more expensive but also more difficult for governments to borrow the money they need. Consistently high borrowing costs helped force Greece, Ireland and Portugal to seek international bailouts.


But the renewed sense of optimism in Spain this week led the government to suggest that the country’s economic recession would not be as deep and prolonged as had been feared. When drafting its 2012 budget, the government had expected the economy to contract 1.5 percent, but officials now expect the final figure for last year to be lower.


“The government is adopting the right measures to overcome the crisis, and these efforts are about to bear fruit,” Foreign Minister José Manuel García-Margallo said at an investment conference here Wednesday. “Foreign investors are coming back.”


But some foreign investors in Mr. García-Margallo’s audience gave a much more cautious reading on the recent market rally, as well as warning that it was too early for talk about an economic turnaround.


“Optimism is the flavor of the day, but perhaps people are overoptimistic,” said Birgitte Olsen, fund manager at Bellevue Asset Management in Zurich. “We’ve now seen some car companies shift their production lines to Spain, but a lot more reforms and work need to be done to return to growth and job creation.”


Still, Ms. Olsen said, “it makes sense for any company that has the opportunity to sell bonds to do it right now.”


Indeed, last year’s trickle of Spanish corporate debt issuance has turned this month into a flow. On Wednesday, Banco Santander sold €1 billion of seven-year bonds at an interest rate of 4 percent. In the first two weeks of January, a handful of other Spanish banks, as well as Telefónica and energy companies including Gas Natural and Red Eléctrica, sold bonds totaling over €7 billion, with most sales heavily oversubscribed.


“The results of some of these Spanish bond issues would have been impossible just three months ago, but it’s unclear to me whether what has now opened is really a long-term window,” said Michael Gierse, a fund manager at Union Investment in Frankfurt, which has €180 billion in assets under management.


The next litmus test for investors, Mr. Gierse said, would come at the end of the month, when the Spanish authorities are expected to lift a ban on the short-selling of all stocks trading on the country’s exchanges. The ban, intended to reduce market volatility, was to be lifted at the end of last October but was then extended by three months to help ailing companies like Banco Popular issue debt. Short-selling lets investors sell borrowed shares in the hope that their price will fall and that they could then be repurchased more cheaply, allowing the investors to pocket the difference.


“Once the short-selling ban gets lifted, we will have a much clearer idea of whether this market rally is for real,” Mr. Gierse said. For now, he added, “I don’t think that investors from outside the euro zone are already back in Spain.”


One reason for such wariness is that investors endured a roller-coaster ride last year.


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Well: Life, Interrupted: Brotherly Love

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Life, Interrupted

Suleika Jaouad writes about her experiences as a young adult with cancer.

There are a lot of things about having cancer in your 20s that feel absurd. One of those instances was when I found myself calling my brother Adam on Skype while he was studying abroad in Argentina to tell him that I had just been diagnosed with leukemia and that — no pressure — he was my only hope for a cure.

Today, my brother and I share almost identical DNA, the result of a successful bone marrow transplant I had last April using his healthy stem cells. But Adam and I couldn’t be more different. Like a lot of siblings, we got along swimmingly at one moment and were in each other’s hair the next. My younger brother by two years, he said I was a bossy older sister. I, of course, thought I knew best for my little brother and wanted him to see the world how I did. My brother is quieter, more reflective. I’m a chronic social butterfly who is probably a bit too impulsive and self-serious. I dreamed of dancing in the New York City Ballet, and he imagined himself playing in the N.B.A. While the sounds of the rapper Mos Def blared from Adam’s room growing up, I practiced for concerto competitions. Friends joked that one of us had to be adopted. We even look different, some people say. But really, we’re just siblings like any other.

When I was diagnosed with cancer at age 22, I learned just how much cancer affects families when it affects individuals. My doctors informed me that I had a high-risk form of leukemia and that a bone marrow transplant was my only shot at a cure. ‘Did I have any siblings?’ the doctors asked immediately. That would be my best chance to find a bone marrow match. Suddenly, everyone in our family was leaning on the little brother. He was in his last semester of college, and while his friends were applying to jobs and partying the final weeks of the school year away, he was soon shuttling from upstate New York to New York City for appointments with the transplant doctors.

I’d heard of organ transplants before, but what was a bone marrow transplant? The extent of my knowledge about bone marrow came from French cuisine: the fancy dish occasionally served with a side of toasted baguette.

Jokes aside, I learned that cancer patients become quick studies in the human body and how cancer treatment works. The thought of going through a bone marrow transplant, which in my case called for a life-threatening dose of chemotherapy followed by a total replacement of my body’s bone marrow, was scary enough. But then I learned that finding a donor can be the scariest part of all.

It turns out that not all transplants are created equal. Without a match, the path to a cure becomes much less certain, in many cases even impossible. This is particularly true for minorities and people from mixed ethnic backgrounds, groups that are severely underrepresented in bone marrow registries. As a first generation American, the child of a Swiss mother and Tunisian father, I suddenly found myself in a scary place. My doctors worried that a global, harried search for a bone marrow match would delay critical treatment for my fast-moving leukemia.

That meant that my younger brother was my best hope — but my doctors were careful to measure hope with reality. Siblings are the best chance for a match, but a match only happens about 25 percent of the time.

To our relief, results showed that my brother was a perfect match: a 10-out-of-10 on the donor scale. It was only then that it struck me how lucky I had been. Doctors never said it this way, but without a match, my chances of living through the next year were low. I have met many people since who, after dozens of efforts to encourage potential bone marrow donors to sign up, still have not found a match. Adding your name to the bone marrow registry is quick, easy and painless — you can sign up at marrow.org — and it just takes a swab of a Q-tip to get your DNA. For cancer patients around the world, it could mean a cure.

The bone marrow transplant procedure itself can be dangerous, but it is swift, which makes it feel strangely anti-climactic. On “Day Zero,” my brother’s stem cells dripped into my veins from a hanging I.V. bag, and it was all over in minutes. Doctors tell me that the hardest part of the transplant is recovering from it. I’ve found that to be true, and I’ve also recognized that the same is true for Adam. As I slowly grow stronger, my little brother has assumed a caretaker role in my life. I carry his blood cells — the ones keeping me alive — and he is carrying the responsibility, and often fear and anxiety, of the loving onlooker. He tells me I’m still a bossy older sister. But our relationship is now changed forever. I have to look to him for support and guidance more than I ever have. He’ll always be my little brother, but he’s growing up fast.

Suleika Jaouad (pronounced su-LAKE-uh ja-WAD) is a 24-year-old writer who lives in New York City. Her column, “Life, Interrupted,” chronicling her experiences as a young adult with cancer, appears regularly on Well. Follow @suleikajaouad on Twitter.

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Well: Life, Interrupted: Brotherly Love

Label:
Life, Interrupted

Suleika Jaouad writes about her experiences as a young adult with cancer.

There are a lot of things about having cancer in your 20s that feel absurd. One of those instances was when I found myself calling my brother Adam on Skype while he was studying abroad in Argentina to tell him that I had just been diagnosed with leukemia and that — no pressure — he was my only hope for a cure.

Today, my brother and I share almost identical DNA, the result of a successful bone marrow transplant I had last April using his healthy stem cells. But Adam and I couldn’t be more different. Like a lot of siblings, we got along swimmingly at one moment and were in each other’s hair the next. My younger brother by two years, he said I was a bossy older sister. I, of course, thought I knew best for my little brother and wanted him to see the world how I did. My brother is quieter, more reflective. I’m a chronic social butterfly who is probably a bit too impulsive and self-serious. I dreamed of dancing in the New York City Ballet, and he imagined himself playing in the N.B.A. While the sounds of the rapper Mos Def blared from Adam’s room growing up, I practiced for concerto competitions. Friends joked that one of us had to be adopted. We even look different, some people say. But really, we’re just siblings like any other.

When I was diagnosed with cancer at age 22, I learned just how much cancer affects families when it affects individuals. My doctors informed me that I had a high-risk form of leukemia and that a bone marrow transplant was my only shot at a cure. ‘Did I have any siblings?’ the doctors asked immediately. That would be my best chance to find a bone marrow match. Suddenly, everyone in our family was leaning on the little brother. He was in his last semester of college, and while his friends were applying to jobs and partying the final weeks of the school year away, he was soon shuttling from upstate New York to New York City for appointments with the transplant doctors.

I’d heard of organ transplants before, but what was a bone marrow transplant? The extent of my knowledge about bone marrow came from French cuisine: the fancy dish occasionally served with a side of toasted baguette.

Jokes aside, I learned that cancer patients become quick studies in the human body and how cancer treatment works. The thought of going through a bone marrow transplant, which in my case called for a life-threatening dose of chemotherapy followed by a total replacement of my body’s bone marrow, was scary enough. But then I learned that finding a donor can be the scariest part of all.

It turns out that not all transplants are created equal. Without a match, the path to a cure becomes much less certain, in many cases even impossible. This is particularly true for minorities and people from mixed ethnic backgrounds, groups that are severely underrepresented in bone marrow registries. As a first generation American, the child of a Swiss mother and Tunisian father, I suddenly found myself in a scary place. My doctors worried that a global, harried search for a bone marrow match would delay critical treatment for my fast-moving leukemia.

That meant that my younger brother was my best hope — but my doctors were careful to measure hope with reality. Siblings are the best chance for a match, but a match only happens about 25 percent of the time.

To our relief, results showed that my brother was a perfect match: a 10-out-of-10 on the donor scale. It was only then that it struck me how lucky I had been. Doctors never said it this way, but without a match, my chances of living through the next year were low. I have met many people since who, after dozens of efforts to encourage potential bone marrow donors to sign up, still have not found a match. Adding your name to the bone marrow registry is quick, easy and painless — you can sign up at marrow.org — and it just takes a swab of a Q-tip to get your DNA. For cancer patients around the world, it could mean a cure.

The bone marrow transplant procedure itself can be dangerous, but it is swift, which makes it feel strangely anti-climactic. On “Day Zero,” my brother’s stem cells dripped into my veins from a hanging I.V. bag, and it was all over in minutes. Doctors tell me that the hardest part of the transplant is recovering from it. I’ve found that to be true, and I’ve also recognized that the same is true for Adam. As I slowly grow stronger, my little brother has assumed a caretaker role in my life. I carry his blood cells — the ones keeping me alive — and he is carrying the responsibility, and often fear and anxiety, of the loving onlooker. He tells me I’m still a bossy older sister. But our relationship is now changed forever. I have to look to him for support and guidance more than I ever have. He’ll always be my little brother, but he’s growing up fast.

Suleika Jaouad (pronounced su-LAKE-uh ja-WAD) is a 24-year-old writer who lives in New York City. Her column, “Life, Interrupted,” chronicling her experiences as a young adult with cancer, appears regularly on Well. Follow @suleikajaouad on Twitter.

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Bits Blog: Facebook's Other Big Disruption

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Facebook just made a potentially game-changing announcement. It got less fanfare than Tuesday’s announcement that it is going into the social search business, but this other announcement may have bigger long-term implications for the technology industry.

Put simply, some of the world’s biggest computing systems just got a little cheaper, and a lot easier to configure. As a consequence, the companies that supply the hardware to these systems may have to scramble to remain as profitable. The reason is a Facebook-led open source project.

In 2011 Facebook began the Open Compute Project, an effort among technology companies to use open-source computer hardware. Tech companies similarly shared intellectual property with Linux software, which lowered costs and spurred innovation. Facebook’s project has attracted many significant participants, including Goldman Sachs, Arista Networks, Rackspace, Hewlett-Packard and Dell.

At a user summit on Wednesday Intel, another key member of the Open Compute Project, announced it would release to the group a silicon-based optical system that enables the data and computing elements in a rack of computer servers to communicate at 100 gigabits a second. That is significantly faster than conventional wire-based methods, and uses about half the power.

More important, it means that elements of memory and processing that now must be fixed closely together can be separated within a rack, and used as needed for different kinds of tasks. There is a lot of waste in data centers today simply because, when there is an upgrade in servers, lots of other associated data-processing hardware has to be changed, too.

There were other announcements, like a computer motherboard called Grouphug that allows different manufacturers’ chips to be interchanged without altering other parts of the machine. Before, they were custom made. Put together, such innovations potentially lower the cost and complexity of running big and small data centers to an extent that works for a lot of companies.

“Who wouldn’t want a cheaper, more efficient server?” said Frank Frankovsky, vice president of hardware design at Facebook, and the chairman of Open Compute. “The problem we’re solving is much larger than Facebook’s own challenges. There is a massive amount of data in the world that people expect to have processed quickly.”

To be sure, it’s in Facebook’s interest to attack expensive hardware. The company makes money from a service that requires hundreds of thousands of computer servers distributed in big centers around the world. Google and Amazon.com, which are not members of the project, maintain proprietary systems which they apparently felt gave them a competitive edge.

For Facebook, the difference seems to be more in the software. To the extent hardware costs drop, that’s great for them. Mr. Frankovsky argued that, while “this puts challenges on the incumbents” in hardware, “it also helps them. They have a finite number of engineering resources, and this way they hear from a community about whether there is an interest for a product.” Intel may hope to benefit from its open-source release, since it could see an overall rise in demand for its chips with the move toward cheaper computing.

The real test is whether Facebook can increase the number of potential buyers for Open Compute equipment. “The question is, can they extend this beyond a few Web businesses like Facebook and Rackspace, or a few financial exercises at Goldman, and bring this to industries like oil or aerospace?” said Matt Eastwood, an analyst with IDC, a technology research firm. “That will take it from 20 or 30 companies to hundreds of companies.”

The issue isn’t so much a technical one, he argues, as it is one of getting corporate information technology professionals interested in radical design changes. Mr. Frankovsky is aware of the problem. Recently he and his colleagues led a seminar in Texas for BP, Shell and other oil giants on how they could use Open Compute hardware in their data centers.

This will not change things dramatically this year, and possibly even next, but over the long haul it could remake a lot of businesses. Linux, remember, was around for several years as a minor player, but eventually undid Sun Microsystems and others.

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Algeria Confirms Hostage Deaths in Rescue Raid

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BAMAKO, Mali — Kidnappers and at least some of their hostages were killed on Thursday as Algerian forces assaulted a heavily armed group of Islamist extremists holding dozens of captives, including Americans and other foreigners, in a remote gas field facility in the Algerian desert, the Algerian government announced.







Kjetil Alsvik/Statoil, via Agence France-Presse — Getty Images

An undated photo of the In Amenas gas field in Algeria, where Islamist militants took dozens of foreign hostages on Wednesday.






In a statement on national radio, the communications minister, Mohand Saïd Oublaïd, said that many of the hostages had been freed, but he warned that the military assault was not yet complete and that some captives remained trapped inside the facility.


“The operation resulted in the neutralization of a large number of terrorists and the liberation of a considerable number of hostages,” Mr. Oublaïd said. “Unfortunately, we deplore also the death of some, as well as some who were wounded. We do not have final numbers.”


He also said “the operation is ongoing, given the complexity of the site, to liberate the rest of the hostages and those who are trapped inside.”


The announcement was the most detailed official information given by Algeria on the crisis. It began more than 24 hours earlier when Islamist militants seized the hostages at the internationally managed gas field in the Sahara near the Libyan border, in what they called retaliation for the French military intervention in neighboring Mali. The seizure of the gas field was one of the boldest abductions of foreign workers in recent years.


Unconfirmed news reports earlier on Thursday, quoting a statement reportedly from the hostage takers, said the Algerian military assault had left 35 hostages and 15 kidnappers dead. One Algerian government official called those numbers “exaggerated.”


The communications minister said the military assault force sent to end the gas-field siege had first sought a peaceful end.


“But confronted with the determination of the heavily armed terrorist group, our armed forces were forced to surround the site and fire warning shots,” he said. “In front of the stubborn refusal of these terrorists to heed these warnings and confronted with their evident desire to leave Algeria with the foreign hostages to then use them as a bargaining chip, an assault was launched this Thursday at the end of the morning.”


The minister’s announcement came as foreign governments, including the United States, were seeking clarity on the fate of their citizens trapped inside the gas-field facility. There was no sign that the Algerians had given prior notice to any of the countries whose citizens were among the hostages.


A senior American official said Pentagon aides traveling in London with Defense Secretary Leon E. Panetta were struggling to obtain basic information about the Algerian raid, and there were unconfirmed reports that an American Predator drone was monitoring the gas-field site.


The senior official said that perhaps seven to eight Americans were among the hostages — the first official confirmation of the number of Americans held captive — and that he did not know if any had been killed in the rescue operation.


David Cameron, the prime minister of Britain, said through a spokesman that his office had not been told ahead of time, an implicit criticism of the Algerian government. “The Algerians are aware that we would have preferred to have been consulted in advance,” the spokesman said.


Japan expressed even stronger concern, saying Algeria had not only failed to advise of the operation ahead of time, but that Japan had also asked Algeria to halt the operation because it was endangering the hostages.


“We asked Algeria to put human lives first and asked Algeria to strictly refrain,” the chief Cabinet secretary, Yoshihide Suga, quoted Prime Minister Shinzo Abe as telling his Algerian counterpart, Abdelmalek Sellal, by telephone late Thursday.


The situation is “very confused,” President François Hollande of France said at a news conference in Paris and was “evolving hour by hour.” Mr. Hollande confirmed for the first time officially that French citizens were among the captives.


The kidnapping in Algeria was a retaliation for the continuing French military assault on Islamist extremists in Mali that has escalated into a much broader conflict, now enmeshing the United States and other countries with citizens held hostage. Reuters said the survivors of the Algerian assault included hostages from the United States, Belgium, Japan and Britain. The full extent of the casualties was not immediately clear.


News agencies in Algeria and neighboring Mauritania said the helicopters may have attacked when the kidnappers sought to move their hostages from one part of the installation to another.


Adam Nossiter reported from Bamako, and Alan Cowell and Scott Sayare from Paris. Reporting was contributed by Clifford Krauss from Houston, Rick Gladstone from New York, Elisabeth Bumiller and John F. Burns from London, Steven Erlanger from Paris, Hiroko Tabuchi from Tokyo and Clifford Krauss from Houston.



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Deepening Crisis for the Dreamliner

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Noboru Tomura/Asahi Shimbun, via Associated Press


An All Nippon Airways flight in Takamatsu, Japan, after an emergency landing on Wednesday.









TOKYO — The two largest Japanese airlines said Wednesday that they would ground their fleets of Boeing 787 aircraft after one operated by All Nippon Airways made an emergency landing in western Japan.




The latest episode elevates the safety concerns about Boeing’s new flagship airliner.


The emergency landing followed a string of problems in the past month with the Boeing 787, known as the Dreamliner, including a battery fire, fuel leaks and a cracked cockpit window. All Nippon said the problems Wednesday involved the same lithium-ion batteries that caught fire last week in Boston on a Dreamliner operated by Japan Airlines.


Last week, the U.S. Federal Aviation Administration ordered a comprehensive review of the Dreamliner’s manufacturing and design, with a focus on the plane’s electrical systems. During a news conference last Thursday, the U.S. transportation secretary, Ray LaHood, made no mention of grounding Dreamliners. But if the problems continue, tougher measures could presumably be taken.


Boeing executives declined to comment Wednesday on the Japanese groundings. The company’s shares were down 3.7 percent in afternoon trading Wednesday in New York.


Eight airlines now fly the Dreamliner. All Nippon Airways and Japan Airlines in Japan own 24 of the 50 delivered by Boeing since November 2011. The other operators are Air India, Ethiopian Airlines, LAN Airlines of Chile, LOT of Poland, Qatar Airways and United Airlines of the United States. Orders for about 800 additional 787s are in the pipeline.


In the episode in Japan early Wednesday, the 137 passengers and crew members aboard Flight NH692 from Yamaguchi Ube Airport, in western Japan, to Tokyo used emergency slides to leave the aircraft early after battery trouble and an “unusual smell” in the cockpit prompted its pilots to land instead at Takamatsu airport, according to All Nippon. The jet’s main battery in the front of the plane was later found to have become discolored and to be seeping electrolyte fluid, All Nippon said.


Ryosei Nomura, a spokesman for All Nippon, said Wednesday that the airline was temporarily grounding all 17 of its Dreamliners for inspections, leading to the cancellation of 38 domestic and international flights. Japan Airlines also said it would ground the five Dreamliners it was operating; two other aircraft were already undergoing safety checks.


Akihiro Ota, the Japanese transportation minister, said that the emergency landing had raised concerns about the Dreamliner’s safety and that he would dispatch officials to investigate. “I see this as a serious incident which could have led to a serious accident,” Mr. Ota said in Tokyo.


All Nippon and Japan Airlines said the planes would return to the air after safety checks, although it was unclear how soon that might be. All Nippon said it would keep its Dreamliner fleet grounded Thursday, canceling 35 domestic flights and using other types of aircraft for its international routes.


The review by the U.S. aviation administration is unusual, just 15 months after the plane entered service following a lengthy certification process by the agency. That review is in addition to a formal investigation by the U.S. National Transportation Safety Board of what caused a battery fire on a Japan Airlines plane that flew to Boston from Tokyo last week.


The safety board said Wednesday it was “currently in the process of gathering information about the B-787 emergency landing in Japan earlier today.”


Boeing has sought to ease concerns about the plane’s design and reliability, and has said it is no more trouble-prone than other new commercial airplane programs.


Updesh Kapur, a spokesman for Qatar Airways, affirmed on Wednesday the airline’s view that the Dreamliner was safe but declined to comment on the decisions by the Japanese carriers. Qatar Airways operates three Dreamliners and has orders and purchase options for 57 more.


Last week, Akbar Al Baker, the Qatar Airways chief executive, played down the recent string of Dreamliner incidents as “teething issues with various components” and expressed confidence that Boeing would resolve any problems. He added that his airline was taking “every precaution” to ensure its fleet was safe to fly.


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Well: Ask Well: Do I Need a Flu Shot if I've Had the Flu?

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First, how do you know you had the flu? There are more than 100 viruses that can cause “colds and flu” symptoms — though a bad flu is worse than most of them. Doctors often describe it as “high fever, aches and the feeling that you’ve been hit by a truck.” The country is having an early flu season, plus a big wave of norovirus (sometimes called “stomach flu” or “winter vomiting flu”), plus its worst whooping cough outbreak in 50 years, plus the usual spate of winter colds. Unless a doctor took a nasal swab, you can’t be sure that what you had was flu — and unless it was sent on to a top state laboratory or to the Centers for Disease Control and Prevention lab for sequencing (which is not routine), even your doctor wouldn’t be able to say for sure exactly which flu virus it was.

Second, even if you had the flu, you presumably had only one strain, which you now have antibodies against. There are at least four strains circulating this year: H3N2, H1N1, and two different B strains. The flu shot contains vaccines against three of them (it only has one of the B’s). By next year, some flu shots will have four vaccines. So a shot would still offer protection against flus you have not had. I suppose your chances of getting flu twice in one season aren’t huge — but some people just get unlucky. And if you have any reason to particularly fear flu, like a depressed immune system, serious obesity or diabetes, or if you are pregnant, you should definitely talk to a medical professional about this.

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Well: Ask Well: Do I Need a Flu Shot if I've Had the Flu?

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First, how do you know you had the flu? There are more than 100 viruses that can cause “colds and flu” symptoms — though a bad flu is worse than most of them. Doctors often describe it as “high fever, aches and the feeling that you’ve been hit by a truck.” The country is having an early flu season, plus a big wave of norovirus (sometimes called “stomach flu” or “winter vomiting flu”), plus its worst whooping cough outbreak in 50 years, plus the usual spate of winter colds. Unless a doctor took a nasal swab, you can’t be sure that what you had was flu — and unless it was sent on to a top state laboratory or to the Centers for Disease Control and Prevention lab for sequencing (which is not routine), even your doctor wouldn’t be able to say for sure exactly which flu virus it was.

Second, even if you had the flu, you presumably had only one strain, which you now have antibodies against. There are at least four strains circulating this year: H3N2, H1N1, and two different B strains. The flu shot contains vaccines against three of them (it only has one of the B’s). By next year, some flu shots will have four vaccines. So a shot would still offer protection against flus you have not had. I suppose your chances of getting flu twice in one season aren’t huge — but some people just get unlucky. And if you have any reason to particularly fear flu, like a depressed immune system, serious obesity or diabetes, or if you are pregnant, you should definitely talk to a medical professional about this.

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E.U. Weighs Requiring Firms to Disclose Data Breaches

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BERLIN — To combat a rise in cybercrime, the European Commission is considering a plan to require companies that store data on the Internet — like Microsoft, Apple, Google and I.B.M. — to report the loss or theft of personal information in the 27-nation bloc or risk sanctions and fines.


The proposal, which is being drafted by Neelie Kroes, the European Union’s commissioner for the digital agenda, aims to impose, for the first time, E.U.-wide reporting requirements on companies that run large databases, those used for Internet searches, social networks, e-commerce or cloud services. The proposed directive would supplant a patchwork of national laws in Europe that have made reporting mandatory in Germany and Spain, but voluntary in Britain and Italy.


While European lawmakers are trying to limit cybercrime, the plan by Mrs. Kroes has generated controversy because it would extend the obligation to report data breaches beyond traditional compilers of customer databases — telephone, transport and utility companies.


The technology industry supports the idea of a more systematic approach to the flagging of security breaches, but says the proposal needs more specific guidelines to ensure that notifications are required only when necessary and useful to consumers.


“Harmonization of the notification requirements for security breaches is important and should be addressed,” said Thomas Boué, the government affairs director in Brussels for the Business Software Alliance, whose members include Microsoft, I.B.M., Apple, Oracle and Intel. “More precise guidelines in the directive on the trigger and threshold procedures would make the system more workable.”


Cybercrime has risen sharply in Europe. A series of high-profile hacking attacks on governments and businesses has galvanized European lawmakers to focus on the need to strengthen and harmonize existing laws, which vary widely across the Union and differ on the levels of disclosure required.


In Britain alone, businesses and governments reported 821 cyberattacks in 2011, 15 percent of which resulted in the theft of data on individuals, according to the country’s Information Commissioner’s Office. The attacks represented a more than tenfold increase over the 79 incidents reported in 2007. In one of the breaches, health officials in Scotland reported, the medical records of 104 children had been compromised.


Big companies in Britain are attacked about once a week on average by cybercriminals seeking data, and small businesses are targeted once a month, according to a survey last year of 400 businesses by the accounting firm PricewaterhouseCoopers. The cost to the biggest companies of taking the steps necessary to repel an attack and deal with the damage caused by one can reach about £250,000, or $400,000.


Karin Retzer, a lawyer in Brussels who advises businesses on compliance with European data protection laws, said it was hard to say whether European lawmakers would ultimately adopt the rules, the first effort of the kind worldwide.


“We are in a fairly early stage,” said Ms. Retzer, of the firm Morrison & Foerster. “There is a lot of opposition.”


Under E.U. law adopted in 2009, the operators of critical “communications infrastructure” are supposed to follow guidelines on reporting data breaches, but Ms. Retzer said enforcement was spotty at best. Many E.U. countries have applied the mandate only to phone companies, while others have rules on paper for Web businesses but have never enforced them.


Mrs. Kroes, a Dutch economist, made data security a priority when she took over the position of digital agenda commissioner in 2010. Early last year, she drafted the outlines of an E.U.-wide strategy for cybersecurity with Cecilia Malmstrom, the home affairs commissioner, and Catherine Ashton, the E.U.’s representative for foreign policy


The proposal was supposed to be released last September, but now is expected to be reviewed by the European Commission on Jan. 30. According to a copy of the plan seen by the International Herald Tribune, the new reporting requirements would be applied to, among others, the “enablers of Internet services, e-commerce platforms, Internet payment gateways, social networks, search engines, cloud computing services, application stores.”


The proposal directs E.U. countries to impose penalties on organizations that do not heed the notification rules, and requires them to craft national disclosure laws that are “appropriate, effective, proportionate and dissuasive.”


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Deepening Crisis for the Dreamliner

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Noboru Tomura/Asahi Shimbun, via Associated Press


An All Nippon Airways flight in Takamatsu, Japan, after an emergency landing on Wednesday.









TOKYO — The two largest Japanese airlines said Wednesday that they would ground their fleets of Boeing 787 aircraft after one operated by All Nippon Airways made an emergency landing in western Japan.




The latest episode elevates the safety concerns about Boeing’s new flagship airliner.


The emergency landing followed a string of problems in the past month with the Boeing 787, known as the Dreamliner, including a battery fire, fuel leaks and a cracked cockpit window. All Nippon said the problems Wednesday involved the same lithium-ion batteries that caught fire last week in Boston on a Dreamliner operated by Japan Airlines.


Last week, the U.S. Federal Aviation Administration ordered a comprehensive review of the Dreamliner’s manufacturing and design, with a focus on the plane’s electrical systems. During a news conference last Thursday, the U.S. transportation secretary, Ray LaHood, made no mention of grounding Dreamliners. But if the problems continue, tougher measures could presumably be taken.


Boeing executives declined to comment Wednesday on the Japanese groundings. The company’s shares were down 3.7 percent in afternoon trading Wednesday in New York.


Eight airlines now fly the Dreamliner. All Nippon Airways and Japan Airlines in Japan own 24 of the 50 delivered by Boeing since November 2011. The other operators are Air India, Ethiopian Airlines, LAN Airlines of Chile, LOT of Poland, Qatar Airways and United Airlines of the United States. Orders for about 800 additional 787s are in the pipeline.


In the episode in Japan early Wednesday, the 137 passengers and crew members aboard Flight NH692 from Yamaguchi Ube Airport, in western Japan, to Tokyo used emergency slides to leave the aircraft early after battery trouble and an “unusual smell” in the cockpit prompted its pilots to land instead at Takamatsu airport, according to All Nippon. The jet’s main battery in the front of the plane was later found to have become discolored and to be seeping electrolyte fluid, All Nippon said.


Ryosei Nomura, a spokesman for All Nippon, said Wednesday that the airline was temporarily grounding all 17 of its Dreamliners for inspections, leading to the cancellation of 38 domestic and international flights. Japan Airlines also said it would ground the five Dreamliners it was operating; two other aircraft were already undergoing safety checks.


Akihiro Ota, the Japanese transportation minister, said that the emergency landing had raised concerns about the Dreamliner’s safety and that he would dispatch officials to investigate. “I see this as a serious incident which could have led to a serious accident,” Mr. Ota said in Tokyo.


All Nippon and Japan Airlines said the planes would return to the air after safety checks, although it was unclear how soon that might be. All Nippon said it would keep its Dreamliner fleet grounded Thursday, canceling 35 domestic flights and using other types of aircraft for its international routes.


The review by the U.S. aviation administration is unusual, just 15 months after the plane entered service following a lengthy certification process by the agency. That review is in addition to a formal investigation by the U.S. National Transportation Safety Board of what caused a battery fire on a Japan Airlines plane that flew to Boston from Tokyo last week.


The safety board said Wednesday it was “currently in the process of gathering information about the B-787 emergency landing in Japan earlier today.”


Boeing has sought to ease concerns about the plane’s design and reliability, and has said it is no more trouble-prone than other new commercial airplane programs.


Updesh Kapur, a spokesman for Qatar Airways, affirmed on Wednesday the airline’s view that the Dreamliner was safe but declined to comment on the decisions by the Japanese carriers. Qatar Airways operates three Dreamliners and has orders and purchase options for 57 more.


Last week, Akbar Al Baker, the Qatar Airways chief executive, played down the recent string of Dreamliner incidents as “teething issues with various components” and expressed confidence that Boeing would resolve any problems. He added that his airline was taking “every precaution” to ensure its fleet was safe to fly.


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Euro Watch: German Economy Shrank in Fourth Quarter

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FRANKFURT — The economic stagnation in Europe has taken a significant toll on Germany, with government figures released Tuesday showing that the Continent’s flagship economy contracted in the fourth quarter of last year.







Ina Fassbender/Reuters

A ThyssenKrupp steel plant in Bruckhausen, Germany. Economists expect the German economy to resume growth quickly this year.






The Federal Statistical Office in Wiesbaden estimated that the German economy shrank about 0.5 percent in the final three months of 2012, compared with the previous three months. The decline was largely the result of sagging investment by German managers worried about the future of the euro zone.


And despite reassurances from economists that growth would bounce back quickly in Germany, the data underlined how closely the country’s fate remained tied to its ailing euro zone allies.


“This idea that Germany is a powerhouse dragging the rest of Europe along with it is a bit of a myth, to be honest,” said Philip Whyte, a senior research fellow at the Center for European Reform in London. “You have a very weak periphery, and a core which is not as strong as everyone seems to believe.”


Throughout the European debt crisis Germany has managed to float above the bad news, enjoying record employment, rock-bottom borrowing costs and export-led growth that kept chugging in spite of the cloud hanging over the euro zone. But Germany’s European partners are also among its biggest customers, leaving it vulnerable to the Continent-wide slowdown made worse by the very austerity policies championed by Chancellor Angela Merkel.


Portugal’s central bank on Tuesday cut its economic forecast for this year, saying the economy would contract more steeply than expected. France has probably missed its target for reducing the budget deficit, according to data published Tuesday, raising the prospects of deeper spending cuts and additional taxes. Meanwhile, elections pending in Italy next month have ground that country’s drive toward economic overhauls to a halt.


“The longer the euro crisis lasts, the more difficult the situation becomes for Germany,” said Stefan Kooths, an economist at the Kiel Institute for the World Economy. “We have always said Germany is not a Teflon economy.”


The German government is scheduled to release its report on the economy Wednesday and will forecast growth of 0.5 percent this year, the Handelsblatt newspaper reported, saying it had obtained a copy of the document. In the context of the euro zone as a whole, which is in recession with record unemployment, any growth is considered positive.


But most forecasts are based on the assumption that financial markets will remain calm. If anything were to shake investor confidence in the euro zone, like political turmoil in Italy or Greece, the weak growth rate would mean that Germany would not have much of a cushion against recession.


France is en route to missing its deficit reduction target this year, according to preliminary data released Tuesday by the French government. Although the government aimed for a deficit of 4.5 percent of gross domestic product, data for November suggest the shortfall will be 4.8 percent, ING Bank estimated.


That means the French president, François Hollande, would have to find an additional €5 billion, or $6.7 billion, in revenue to meet the 2013 budget target, and could risk another downgrade of the country’s credit rating.


The data also indicate the challenge of keeping France’s overall level of debt from rising beyond its current level, which is already above 90 percent of G.D.P.


“Today’s figures underline how difficult the task will remain for François Hollande to keep the debt below 100 percent of G.D.P. during his mandate, and France’s rank in the core of the euro zone,” Julien Manceaux, an economist at ING, wrote in a note.


German public finances contrast with those of France. Together, German federal, state and local governments recorded a budget surplus for the year equal to 0.1 percent of G.D.P, the statistical agency in Wiesbaden said. That is the first government surplus since 2007, and it creates leeway for Ms. Merkel to stimulate the economy with public spending if the downturn is worse than expected.


The fiscal strength in Germany underscores the inequities within the euro currency union. Already, the government has been expanding a program that encourages companies to cut worker hours rather than eliminate jobs. The so-called short work program uses government money to compensate employees for some of the wages they lose by putting in fewer hours.


Within the region, Germany has served as a crucial counterweight to the struggling economies of Southern Europe, and helped to stabilize the euro zone as a whole.


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Vital Signs: Nutrition: Vitamin D Doesn’t Reduce Knee Pain

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About 27 million people in the United States have osteoarthritis, an incurable condition with few effective treatments beyond pain control. Some observational evidence suggests that vitamin D supplements might slow progression of the disease.

But a two-year randomized placebo-controlled study found that vitamin D did not reduce knee pain or restore cartilage.

In an article published in The Journal of the American Medical Association last week, researchers described a study of 146 men and women with painful knee arthritis who were randomly assigned to take vitamin D supplements or placebos. Vitamin D was given in quantities sufficient to raise blood levels to 36 nanograms per milliliter, a level considered sufficient for good health.

Knee pain decreased slightly in both groups, but there were no differences in the amount of cartilage lost, bone mineral density or joint deterioration as measured by X-rays and M.R.I. scans.

The lead author, Dr. Timothy McAlindon, chief of the division of rheumatology at Tufts Medical Center, said taking vitamin D in higher doses or for longer periods might make a difference, but he’s not hopeful.

“Although there were lots of promising observational data, we find no efficacy of vitamin D for knee osteoarthritis,” he said. “There may be reasons to take vitamin D supplements, but knee osteoarthritis is not one of them.”

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Vital Signs: Nutrition: Vitamin D Doesn’t Reduce Knee Pain

Label:

About 27 million people in the United States have osteoarthritis, an incurable condition with few effective treatments beyond pain control. Some observational evidence suggests that vitamin D supplements might slow progression of the disease.

But a two-year randomized placebo-controlled study found that vitamin D did not reduce knee pain or restore cartilage.

In an article published in The Journal of the American Medical Association last week, researchers described a study of 146 men and women with painful knee arthritis who were randomly assigned to take vitamin D supplements or placebos. Vitamin D was given in quantities sufficient to raise blood levels to 36 nanograms per milliliter, a level considered sufficient for good health.

Knee pain decreased slightly in both groups, but there were no differences in the amount of cartilage lost, bone mineral density or joint deterioration as measured by X-rays and M.R.I. scans.

The lead author, Dr. Timothy McAlindon, chief of the division of rheumatology at Tufts Medical Center, said taking vitamin D in higher doses or for longer periods might make a difference, but he’s not hopeful.

“Although there were lots of promising observational data, we find no efficacy of vitamin D for knee osteoarthritis,” he said. “There may be reasons to take vitamin D supplements, but knee osteoarthritis is not one of them.”

Read More..

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