Investors on Wall St. React Nervously

Henny Ray Abrams/Associated Press

A trader on the floor of the New York Stock Exchange on Wednesday. A day after the election, the outlook of continued divided government in Washington and little prospect for compromise unnerved traders.

Business leaders and investors on Wall Street reacted nervously to President Obama’s re-election Wednesday, as the focus shifted quickly from electoral politics to the looming fiscal uncertainty in Washington. A gloomy economic outlook in Europe also prompted selling in markets worldwide.

Stocks were sharply lower in afternoon trading in New York, with both the Standard & Poor’s 500-stock index and the Dow Jones industrial average down 2.2 percent, as European shares sank and Asian stocks were mixed. While many executives on Wall Street and in other industries favored Mitt Romney, many had already factored in the likelihood of Mr. Obama winning a second term.

Still, continued divided government in Washington and little prospect for compromise unnerved traders.

“The bottom line is that this looks like a status quo election,” said Dean Maki, chief United States economist at Barclays. “The problem with that is that it doesn’t resolve some of the main sources of uncertainty that are hanging over the economy.”

Companies in some sectors, like hospitals and technology, could see a short-term pop, said Tobias Levkovich, chief United States equity strategist with Citi. Other areas, like financial services as well as coal and mining, could be hurt as investors contemplate a tougher regulatory environment.

Shares of Alpha Natural Resources, a coal giant, were down 11.8 percent, while Arch Coal was off 11 percent. But HCA Holdings, a hospital operator, was up 8 percent, to $33.39 a share. As a result of Mr. Obama’s victory, Goldman Sachs said it upgraded its rating on HCA to buy from neutral, and raised its price target to $39 from $31. It also raised price targets for Tenet Healthcare and Community Health Systems, although both are still rated neutral.

Goldman downgraded shares of Humana, a leading managed care company, to sell, and its shares fell 9.9 percent. Goldman warned that Humana and other managed care providers could be hurt as health care reform moves forward, especially new rules for health insurers that become effective in 2014.

Mr. Levkovich predicted that the market would remain volatile between now and mid-January. If Congress and the president cannot come up with a plan to cut the deficit, hundreds of billions in Bush-era tax cuts are set to expire at the beginning of 2013 while automatic spending cuts will sharply cut the defense budget and other programs.

Known as the fiscal cliff, this simultaneous combination of dramatic reductions in government spending and tax increases could push the economy into recession in 2013, economists fear.

But it was not just the election results driving shares lower — there was more gloomy economic news out of Europe.

The European Union will experience only a very weak economic recovery during 2013 while unemployment will remain at “very high” levels, according to a set of forecasts issued Wednesday by the European Commission.

This year, gross domestic product will shrink by 0.3 percent for the 27 members of the union as a whole and by 0.4 percent for the 17 European Union countries that use the euro, the commission predicted. Growth in 2013 will be a meager 0.4 percent across the union and only 0.1 percent in the euro area, it said.

Not only is that level of growth far slower than even the tepid pace of the recovery in the United States, it also makes it more difficult for debt-burdened European economies to get their financial house in order. As markets neared the close in Europe, the Euro Stoxx 50 index, a barometer of euro zone blue chips, fell 2.2 percent, while the FTSE 100 index in London was 1.5 percent lower.

The S.&P./ASX 200 in Australia closed up 0.7 percent, as did the Hang Seng Index in Hong Kong. The Nikkei 225 stock average in Japan ended trading little changed.

“There’s a huge question mark hanging over what happens in the next few weeks,” said Aric Newhouse, senior vice-president of policy and government relations at the National Association of Manufacturers. “The fiscal cliff is the 800-pound gorilla out there.”

“We can’t wait,” he said. “We think the idea of going over the cliff has to be taken off the table. We’ve got to get to the middle ground.”

For all the anticipation, some observers said the election still left plenty of unanswered questions.

“While we have clarity on the players now, we don’t have any more clarity on what will happen in terms of the fiscal cliff,” Mr. Maki said. “We still have a divided government and they haven’t been able to agree on what to do.”

If the full package of tax increases and spending cuts go into effect, that would equal a $650 billion blow to the economy, Mr. Maki said, equivalent to 4 percent of the gross domestic product.

Mr. Maki envisions a partial compromise, with $200 billion in tax increases and spending cuts. Partly because of that, he estimates, the annual rate of economic growth will dip to 1.5 percent in the first quarter of 2013 from 2.5 percent in the fourth quarter. He predicted that if the full fiscal cliff were to hit, the economy would contract in the first half of 2013.

James Kanter contributed reporting.

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Global Update: Polio Eradication Efforts in Pakistan Focus on Pashtuns

Michael Kamber for The New York Times

Polio will never be eradicated in Pakistan until a way is found to persuade poor Pashtuns to embrace the vaccine, according to a study released by the World Health Organization.

A survey of 1,017 parents of young children found that 41 percent had never heard of polio and 11 percent refused to vaccinate their children against it. The survey was done in Karachi, Pakistan’s largest city and the only big city in the world where polio persists; it was published in the agency’s November bulletin.

Parents from poor families “cited lack of permission from family elders,” said Dr. Anita Zaidi, who teaches pediatrics at the Aga Khan University in Karachi. Some rich parents also disdained the vaccine, saying it was “harmful or unnecessary,” she added.

Pashtuns account for 75 percent of Pakistan’s polio cases even though they are only 15 percent of the population. Wealthy children are safer because the virus travels in sewage, and their neighborhoods may have covered sewers and be less flood-prone.

Pashtuns are the largest ethnic group in next-door Afghanistan, where polio has also never been wiped out. Most Taliban fighters are Pashtun, and some Taliban threatened to kill vaccinators earlier this year. Two W.H.O. vaccinators were shot in Karachi in July.

Rumors persist that the vaccine is a plot to sterilize Muslims. But the eradication drive is recruiting Pashtuns as vaccinators and asking prominent religious leaders from various sects to make videos endorsing the vaccine.

Read More..

Global Update: Polio Eradication Efforts in Pakistan Focus on Pashtuns

Michael Kamber for The New York Times

Polio will never be eradicated in Pakistan until a way is found to persuade poor Pashtuns to embrace the vaccine, according to a study released by the World Health Organization.

A survey of 1,017 parents of young children found that 41 percent had never heard of polio and 11 percent refused to vaccinate their children against it. The survey was done in Karachi, Pakistan’s largest city and the only big city in the world where polio persists; it was published in the agency’s November bulletin.

Parents from poor families “cited lack of permission from family elders,” said Dr. Anita Zaidi, who teaches pediatrics at the Aga Khan University in Karachi. Some rich parents also disdained the vaccine, saying it was “harmful or unnecessary,” she added.

Pashtuns account for 75 percent of Pakistan’s polio cases even though they are only 15 percent of the population. Wealthy children are safer because the virus travels in sewage, and their neighborhoods may have covered sewers and be less flood-prone.

Pashtuns are the largest ethnic group in next-door Afghanistan, where polio has also never been wiped out. Most Taliban fighters are Pashtun, and some Taliban threatened to kill vaccinators earlier this year. Two W.H.O. vaccinators were shot in Karachi in July.

Rumors persist that the vaccine is a plot to sterilize Muslims. But the eradication drive is recruiting Pashtuns as vaccinators and asking prominent religious leaders from various sects to make videos endorsing the vaccine.

Read More..

Social Media Finds a Role in Case Against Zimmerman

MIAMI — When Mark O’Mara agreed to defend George Zimmerman in the Trayvon Martin murder case, one of his first major decisions was to embrace the Internet.

He set up a legal defense Web site for his client, a Twitter page and a Facebook account, all with the purpose of countering what he called the “avalanche of misinformation” about the case and Mr. Zimmerman.

It was a risky move, unorthodox for a criminal defense lawyer, legal experts said, but a bold one. Late last month, the judge in the case, rebuffing the prosecution, allowed Mr. O’Mara to keep the online presence.

In so doing, the judge sanctioned the use of social media in a high-profile murder case that was already steeped in the power of Facebook, Twitter and blogs. Not long after Mr. Martin was shot and killed, protesters took their cues from Facebook and demonstrated across the country. Angry words coursed through Twitter.

Mr. Zimmerman, in hiding, started a Web site to raise money. The Martin family’s lawyers, who made ample use of traditional media, used Twitter to bring attention to Mr. Martin’s death.

Social media is playing a role in the courtroom, too. Mr. O’Mara wants to use Mr. Martin’s Facebook page and Twitter feed to bolster Mr. Zimmerman’s claim of self-defense. But he will most likely face a protracted battle to authenticate the material, in part because Mr. Martin is no longer alive. Last month, the judge allowed Mr. O’Mara to subpoena Twitter and Facebook for the information.

In ways large and small, the State of Florida v. George Zimmerman is serving as a modernized blueprint for deploying social media in a murder case.

“The way the whole case has been playing out in social media is typical of our times, but more typical of civil cases than criminal cases,” said Robert Ambrogi, a lawyer and technology expert who writes a blog on the intersection of the legal profession and social media. “It’s not without precedent, but it’s on the cutting edge.”

In civil cases, lawyers routinely dig up Facebook photos of people claiming to have a back injury dancing atop bars or revealing posts from supposedly faithful spouses.

“In the world of electronic information, the amount of potentially relevant information in discovery has exploded,” said Kenneth Withers, the director of judicial education and content for The Sedona Conference, a nonprofit law and policy research organization, referring to the pretrial exchange of information and evidence between lawyers on both sides. “And with social media, there has been an explosion of an explosion.”

It no longer makes sense for criminal defense lawyers who have tread more cautiously into social media to brush it off or avoid it, legal experts said.

Nicole Black, a co-author of “Social Media for Lawyers,” said criminal lawyers are getting crash courses on how to best use social media to help their clients and themselves.

“There is almost hysteria among the lawyers to understand it and how it’s affecting their practice,” said Ms. Black, who is also the director of business development and community relations at MyCaseInc.com.

Mr. O’Mara said as much in court recently when he pressed for access to Mr. Martin’s Facebook page and for the continued use of the legal defense Web site and its Twitter feed. “This is 2012, and I’m sorry, I used to have the books on the shelf, and those days are long gone,” he said. “We now have an active vehicle for information. I will tell you that today, if every defense attorney is not searching for information on something like this, he will be committing malpractice.”

Mr. Zimmerman, a Hispanic neighborhood watch volunteer in Sanford, Fla., is charged with second-degree murder in the shooting death of Mr. Martin, an unarmed black teenager who was killed in February as he walked to a house where he was staying as a guest.

Mr. O’Mara has been careful to hew to ethical requirements on his Twitter feed and Web site, which he uses to post legal documents, react to developments in the case and raise money for his client. He allows comments to be posted so long as they are not inflammatory. When the Facebook page “devolved into people bickering,” he said, he shut it down.

Social media is difficult to control, which for many is precisely its allure. Last month, Mr. Zimmerman’s brother, Robert Zimmerman Jr., fired off an angry post on Twitter at Natalie Jackson, one of the Martin family’s lawyers.

“My Life’s work = you WILL be held accountable for your words/actions. You A’INT seen NOTHIN’ yet ... I will see U disbarred,” he posted on Twitter.

Mr. O’Mara wrote a reaction on his Web site.

“Regarding Robert Zimmerman Jr.’s media campaign and Twitter comments, Robert is acting on behalf of his family, and he is not acting with the approval or the input of the defense team,” he wrote. He noted that, “The Zimmerman family has been through a lot, and they have been frequently misrepresented in the media, so we do not begrudge Robert for wanting to speak out and set the record straight.”

While Mr. O’Mara has become adept at social media, rattling off the number of Google hits on the words Trayvon Martin and the tally of visits to the legal defense site — 267,089 as of Monday — plunging into the world of Twitter, Facebook and blogs is not a welcome development for all in the courtroom.

“I’m new to this, quite frankly; I’m old,” a prosecutor, Bernie de la Rionda, said as the two sides faced off over social media in the courtroom.

Before long, Judge Debra S. Nelson will have to decide how to handle social media during the trial, which is scheduled to begin on June 10. Some jurors in other cases across the country have taken to posting about the proceedings on Facebook or Twitter, posing a risk of mistrials. Judges have cracked down.

Considering the publicity in the case, Judge Nelson may wind up following the lead of the judge in another high-profile Florida murder trial, that of Casey Anthony, who was acquitted of killing her young daughter. She could sequester the jury members, confiscate their cellphones and laptops, and monitor their calls and computer time.

If Judge Nelson does follow suit, she must be prepared to deal with another juror dilemma: extreme withdrawal.

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Obama’s Other ‘Cliff’ Is in Foreign Policy

For all the talk of a “fiscal cliff” threatening the nation’s finances, President Obama also faces a foreign policy cliff of sorts, with a welter of national security issues that he put on the back burner during the campaign now clamoring for his attention.

Atop that list, administration officials and foreign policy experts say, is the bloody civil war in Syria and the standoff with Iran over its nuclear program. The United States is likely to engage the Iranian government in direct negotiations over the next few months, in perhaps a last-ditch diplomatic effort to head off a military strike on its nuclear facilities.

Administration officials said that they had not set a date for talks and that they did not know if Iran’s supreme leader, Ayatollah Ali Khamenei, would give his blessing. But with Iran’s uranium centrifuges spinning and Israel threatening its own military action, the need to avoid a war may make this high-risk diplomatic effort Mr. Obama’s No. 1 priority.

Syria, too, will demand a pressing response, given the high human toll of the violence and the danger of a spreading regional conflict. Mr. Obama, however, remains leery of being dragged into the conflict, rejecting calls to supply weapons to rebel groups. His reluctance has been partly political, experts say, but he also has strategic qualms.

“At a time when he was running on a platform of ending wars in the Middle East, he did not want to be seen as starting one,” said Martin S. Indyk, a former American ambassador to Israel.

“But if he doesn’t try to intervene in a way that gives him a way to shape a post-Assad regime on the ground,” Mr. Indyk continued, referring to the Syrian president, Bashar al-Assad, “there’s a high risk of descent into chaos in Syria, and a sectarian war that spreads to Lebanon, Bahrain and eventually Saudi Arabia.”

Beyond those flash points, the president will have to grapple with Pakistan, an unstable nuclear state whose relationship with Washington has eroded during his presidency. And he will have to oversee an orderly exit from Afghanistan, where the waning American role threatens to throw the country back into chaos and Islamic militancy.

As he does so, some question whether he will rethink his administration’s heavy reliance on drone strikes to kill people suspected of being extremists, a policy that has proved lethally efficient but has sown deep resentment in Pakistan and Afghanistan.

More broadly, Mr. Obama will face Russia under the aggressive leadership of President Vladimir V. Putin and China with the opposite problem — negotiating a tumultuous change in power after a scandal that tainted the top ranks of its Communist leadership.

None of these problems are new, but many were effectively shelved over the past year as the president waged a bitter re-election battle dominated by his stewardship of the economy. Foreign policy played such a bit part in the election that even in the debate ostensibly devoted to it, Mr. Obama and Mitt Romney detoured into a discussion of high school test scores in Massachusetts.

For reasons of history and political reality, a re-elected Mr. Obama is likely to devote more time to foreign affairs. From Richard M. Nixon to Bill Clinton, presidents have tended to make their bid for statesman status in their second terms. The prospect of continuing gridlock — with the Republicans still controlling the House — gives Mr. Obama all the more reason to favor diplomacy over domestic legislation.

There is also some unfinished business from the past four years, not least Mr. Obama’s frustrated efforts to broker a peace agreement between Israel and the Palestinians. But several experts cast doubt on whether the president would throw himself into the role of Middle East peacemaker, as Mr. Clinton did in his second term.

The Israeli prime minister, Benjamin Netanyahu, who has had a fraught relationship with Mr. Obama, faces his own voters early next year, but he seems likely to stay in power with a right-wing government. Such an arrangement could make peacemaking difficult.

“Because he got his fingers burned and was outmaneuvered by Netanyahu, he will wait to see the outcome in the Israeli election,” said Mr. Indyk, who wrote a book about Mr. Obama’s foreign policy, “Bending History.” He added that the president is “going to think long and hard about trying again.”

The added wrinkle for the United States: the Palestinian Authority is likely to petition for nonstate membership in the United Nations next month, a step it had put off until after the election. If the United Nations were to grant it, that would trigger Congress to cut off aid not only to the Palestinian Authority but also to the United Nations itself.

The mere fact of Mr. Obama’s victory does not ease these problems. But as the president himself famously said to Russia’s former president, Dmitri A. Medvedev, at a nuclear conference in South Korea, he may have more room to maneuver in dealing with them.

Ask foreign policy experts for wild cards in a second Obama term and two countries come up: India and Cuba. Little progress was made in opening the door to Havana during the past four years, but hope springs eternal for those who advocate an end to the half-century-old trade embargo. Mr. Obama also is likely to build on his ties to India.

India figures into the biggest geopolitical bet of Mr. Obama’s presidency: the American pivot from the Middle East to China and Asia. With four more years, experts said, Mr. Obama can put meat on the bones of an ambitious, but incomplete, policy.

Here, however, is where the fiscal cliff meets foreign policy. To be credible in reasserting an American presence in Asia, experts said, will require a robust military presence from the Yellow Sea to the South China Sea. But unless the White House and Congress can strike some kind of fiscal deal, the Pentagon will face deep automatic cuts in its budget, depriving it of the ability to project power as it once did.

For Mr. Obama to realize his grandest visions abroad, then, he will still have to work with the same House Republicans who thwarted him on the home front in his first term.

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Changing of the Guard: Facing Protests, China’s Business Investment May Be Cooling

SHIFANG, China — Local leaders were all smiles this summer at a groundbreaking ceremony for a vast copper smelting project that seemed like the answer to the chronic unemployment that has plagued this city in northern Sichuan ever since a devastating earthquake in 2008.

Reuters

A protest against plans to expand a petrochemical plant in Ningbo, China, last month. More investment projects are running into opposition from a growing Chinese middle class concerned about environmental damage.

Articles in this series are examining the implications for China and the rest of the world of the coming changes in the leadership of the Chinese Communist Party.

But within days, the tree-lined plaza at the heart of the city was packed with thousands of youths, protesting that the $1.6 billion factory would pose a pollution hazard. After two nights of street battles pitting youths against the riot police, city leaders canceled the smelter.

“The environment is more important” than new investments or jobs, said a young woman sitting on a recent afternoon at the cafe across the street from the plaza, now empty except for a clutch of retirees gathered under the clock tower.

China’s economic boom over the last three decades has depended overwhelmingly on a build-at-all-costs investment strategy in which pollution concerns, the preservation of neighborhoods and other such questions have been swept aside. But that approach is starting to backfire, posing one of the biggest challenges for the new generation of Chinese policy makers who will take over at the Communist Party Congress, which starts on Thursday.

New investment projects used to be seen as the best way to keep the Chinese public happy with jobs and rising incomes, assuring social stability — a paramount goal of the Communist Party — while frequently enriching local politicians as well.

But from Shifang in the west to the port of Ningbo in the east, where a week of sometimes violent protests forced the suspension on Oct. 28 of plans to expand a chemical plant, more projects are running into public hostility.

In many cases, they are running into opposition not just from farmers who do not want their houses and fields confiscated, but also from a growing middle class fearful that new factories will lead to more environmental damage.

In response to this and other worries about the economy, a number of influential officials and business leaders in China have stepped up their calls for changes aimed at increasing the efficiency of investment and simultaneously shifting the country toward a greater reliance on consumption.

But China’s leaders, including the outgoing prime minister, Wen Jiabao, have been talking about such a transformation for years with little sign of success, as state-controlled banks continue to lend huge sums to politically powerful state-owned enterprises and local governments.

Frenzied construction of roads, bridges, tunnels and rail lines over the last decade has left China with world-class infrastructure. But it has also produced deeply indebted local governments that are struggling to finance more projects.

At the same time, vast unused capacity in practically every industrial sector has crippled profitability and left manufacturing companies straining to repay their borrowings, a problem that has been partly masked by banks in the habit of simply rolling over loans rather than recognizing losses.

“All Chinese industries are like that — can you dig out which area of Chinese industry is not in overcapacity?” said Li Junfeng, a longtime director general for energy at China’s top economic planning agency.

Investment reached 46 percent of China’s economic output last year. By comparison, Japan’s investment rate peaked at 36 percent, which it reached in the early 1970s; South Korea topped out at 39 percent in the late 1980s.

Growth in Japan and South Korea started to slow and eventually tumbled after investment peaked. The big question now is when China will run into the same limits, and how rapidly change will take place, said Diana Choyleva, an economist at Lombard Street Research in Hong Kong. “The potential for a big crisis is always there,” she said.

Even experts who strongly favor fundamental policy changes, like moving to a more market-oriented system for allocating bank loans and setting interest rates, doubt that China’s leaders are preparing to move quickly. Conversations at senior levels of the Communist Party appear to have focused so far on reducing the state’s role in the day-to-day management of many state-owned enterprises rather than selling them or breaking them up.

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Judge Temporarily Blocks Mandate on Birth Control

WASHINGTON — A federal judge has issued an order shielding a Michigan business from a requirement of the new health care law to provide insurance coverage for contraceptives at no charge to female employees.

The judge, Robert H. Cleland of the Federal District Court in Detroit, said last week that the requirement could infringe on “the sincere exercise of religious beliefs” by the owner of the company. He agreed to issue a preliminary injunction to stop the government from enforcing the requirement against two of the plaintiffs, Daniel Weingartz and his family-owned business, Weingartz Supply Co., in Utica, Mich.

Mr. Weingartz, a Roman Catholic, said he had devised a health plan that, in keeping with his religious beliefs, excluded coverage of contraceptives.

His business, a secular for-profit company, sells outdoor power equipment and employs about 170 people.

Judge Cleland is the second judge to issue such an order. In July, a federal district judge in Colorado issued a preliminary injunction blocking enforcement of the contraceptive mandate against Hercules Industries, a maker of heating, ventilation and air-conditioning equipment.

In September, a federal district judge in St. Louis rejected a similar challenge. The judge, Carol E. Jackson, said that the plaintiffs, a Missouri company and its owner, “remain free to exercise their religion, by not using contraceptives and by discouraging employees from using contraceptives.”

Individuals, businesses, hospitals, schools and universities have filed more than three dozen lawsuits challenging the requirement for employers and health plans to cover contraceptives.

Many plaintiffs, like Mr. Weingartz and Hercules, have invoked the First Amendment and the Religious Freedom Restoration Act of 1993. That law provides that officials may not burden a person’s exercise of religion unless they can show “a compelling governmental interest” and use “the least restrictive means” of advancing that interest.

The Obama administration said it had two compelling reasons for the contraceptive mandate: promoting public health and “gender equality.” It quoted Senator Dianne Feinstein, Democrat of California, who said in Senate debate on the legislation: “Women have different health needs than men, and these needs often generate additional costs. Women of childbearing age spend 68 percent more in out-of-pocket health care costs than men.”

Moreover, the Obama administration said, providing a religious exemption to companies like Weingartz Supply and Hercules would allow the owners of secular businesses to impose their religious beliefs on their employees, many of whom may not share the owners’ convictions.

Mr. Weingartz should not be allowed to “impose his religious beliefs on the corporation’s group health plan or its 170 employees,” the Justice Department said in court documents.

Mitt Romney, the Republican presidential nominee, has assailed the contraceptive coverage requirement as a threat to religious liberty. If elected, he has said, he will work to abolish it, along with the rest of President Obama’s health care overhaul.

The new health care law generally requires employers to provide women with coverage at no cost for “preventive care and screenings.”

Under this provision, the administration says, employers must cover sterilization and the full range of contraceptive methods approved by the Food and Drug Administration, including emergency contraceptive pills, like those known as ella and Plan B One-Step. Employers who do not provide such coverage will be subject to financial penalties, starting in 2014.

The administration has agreed to exempt “religious employers” if they meet several criteria: their purpose is to inculcate religious values, they primarily employ and serve people who share their religious tenets and they are recognized as nonprofit organizations under federal tax law.

Judge Cleland decided, in effect, to freeze the current situation while he weighs competing claims by the Obama administration and Weingartz Supply.

“Neither plaintiffs nor the government have shown a strong likelihood of success on the merits,” Judge Cleland wrote.

But in issuing a preliminary injunction, he said he was guided by rulings of the Supreme Court, which has held, “The loss of First Amendment freedoms, for even minimal periods of time, unquestionably constitutes irreparable injury.”

Read More..

Judge Temporarily Blocks Mandate on Birth Control

WASHINGTON — A federal judge has issued an order shielding a Michigan business from a requirement of the new health care law to provide insurance coverage for contraceptives at no charge to female employees.

The judge, Robert H. Cleland of the Federal District Court in Detroit, said last week that the requirement could infringe on “the sincere exercise of religious beliefs” by the owner of the company. He agreed to issue a preliminary injunction to stop the government from enforcing the requirement against two of the plaintiffs, Daniel Weingartz and his family-owned business, Weingartz Supply Co., in Utica, Mich.

Mr. Weingartz, a Roman Catholic, said he had devised a health plan that, in keeping with his religious beliefs, excluded coverage of contraceptives.

His business, a secular for-profit company, sells outdoor power equipment and employs about 170 people.

Judge Cleland is the second judge to issue such an order. In July, a federal district judge in Colorado issued a preliminary injunction blocking enforcement of the contraceptive mandate against Hercules Industries, a maker of heating, ventilation and air-conditioning equipment.

In September, a federal district judge in St. Louis rejected a similar challenge. The judge, Carol E. Jackson, said that the plaintiffs, a Missouri company and its owner, “remain free to exercise their religion, by not using contraceptives and by discouraging employees from using contraceptives.”

Individuals, businesses, hospitals, schools and universities have filed more than three dozen lawsuits challenging the requirement for employers and health plans to cover contraceptives.

Many plaintiffs, like Mr. Weingartz and Hercules, have invoked the First Amendment and the Religious Freedom Restoration Act of 1993. That law provides that officials may not burden a person’s exercise of religion unless they can show “a compelling governmental interest” and use “the least restrictive means” of advancing that interest.

The Obama administration said it had two compelling reasons for the contraceptive mandate: promoting public health and “gender equality.” It quoted Senator Dianne Feinstein, Democrat of California, who said in Senate debate on the legislation: “Women have different health needs than men, and these needs often generate additional costs. Women of childbearing age spend 68 percent more in out-of-pocket health care costs than men.”

Moreover, the Obama administration said, providing a religious exemption to companies like Weingartz Supply and Hercules would allow the owners of secular businesses to impose their religious beliefs on their employees, many of whom may not share the owners’ convictions.

Mr. Weingartz should not be allowed to “impose his religious beliefs on the corporation’s group health plan or its 170 employees,” the Justice Department said in court documents.

Mitt Romney, the Republican presidential nominee, has assailed the contraceptive coverage requirement as a threat to religious liberty. If elected, he has said, he will work to abolish it, along with the rest of President Obama’s health care overhaul.

The new health care law generally requires employers to provide women with coverage at no cost for “preventive care and screenings.”

Under this provision, the administration says, employers must cover sterilization and the full range of contraceptive methods approved by the Food and Drug Administration, including emergency contraceptive pills, like those known as ella and Plan B One-Step. Employers who do not provide such coverage will be subject to financial penalties, starting in 2014.

The administration has agreed to exempt “religious employers” if they meet several criteria: their purpose is to inculcate religious values, they primarily employ and serve people who share their religious tenets and they are recognized as nonprofit organizations under federal tax law.

Judge Cleland decided, in effect, to freeze the current situation while he weighs competing claims by the Obama administration and Weingartz Supply.

“Neither plaintiffs nor the government have shown a strong likelihood of success on the merits,” Judge Cleland wrote.

But in issuing a preliminary injunction, he said he was guided by rulings of the Supreme Court, which has held, “The loss of First Amendment freedoms, for even minimal periods of time, unquestionably constitutes irreparable injury.”

Read More..

Silicon Valley Objects to Online Privacy Rule Proposals for Children

Washington is pushing Silicon Valley on children’s privacy, and Silicon Valley is pushing back.

Daniel Rosenbaum for The New York Times

Phyllis H. Marcus, a lawyer for the F.T.C., is leading a team that is updating a privacy rule to require more parental consent.

Apple, Facebook, Google, Microsoft and Twitter have all objected to portions of a federal effort to strengthen online privacy protections for children. In addition, media giants like Viacom and Disney, cable operators, marketing associations, technology groups and a trade group representing toy makers are arguing that the Federal Trade Commission’s proposed rule changes seem so onerous that, rather than enhance online protections for children, they threaten to deter companies from offering children’s Web sites and services altogether.

“If adopted, the effect of these new rules would be to slow the deployment of applications that provide tremendous benefits to children, and to slow the economic growth and job creation generated by the app economy,” Catherine A. Novelli, vice president of worldwide government affairs at Apple, wrote in comments to the agency.

But the underlying concern, for both the industry and regulators, is not so much about online products for children themselves. It is about the data collection and data mining mechanisms that facilitate digital marketing on apps and Web sites for children — and a debate over whether these practices could put children at greater risk.

In 1998, Congress passed the Children’s Online Privacy Protection Act in an effort to give parents control over the collection and dissemination of private information about their children online. The regulation, known as Coppa, requires Web site operators to obtain a parent’s consent before collecting personal details, like home addresses or e-mail addresses, from children under 13.

Now, federal regulators are preparing to update that rule, arguing that it has not kept pace with advances like online behavioral advertising, a practice that uses data mining to tailor ads to people’s online behavior. The F.T.C. wants to expand the types of data whose collection requires prior parental permission to include persistent ID systems, like unique device codes or customer code numbers stored in cookies, if those codes are used to track children online for advertising purposes.

The idea is to preclude companies from compiling dossiers on the online activities — and by extension the health, socioeconomic status, race or romantic concerns — of individual children across the Web over time.

“What children post online or search as part of their homework should not haunt them as they apply to colleges or for jobs,” Representative Edward J. Markey, Democrat of Massachusetts and co-chairman of the Bipartisan Congressional Privacy Caucus, said in a recent phone interview. “YouTube should not be turned into YouTracked.”

The agency’s proposals have provoked an intense reaction from some major online operators, television networks, social networks, app platforms and advertising trade groups. Some argue that the F.T.C. has overstepped its mandate in proposing to greatly expand the rule’s scope.

Others say that using ID systems like customer code numbers to track children “anonymously” online is benign — and that collecting information about children’s online activities is necessary to deliver the ads that finance free content and services for children.

“What is the harm we are trying to prevent here?” said Alan L. Friel, chairman of the media and technology practice at the law firm Edwards Wildman Palmer. “We risk losing a lot of the really good educational and entertaining content if we make things too difficult for people to operate the sites or generate revenue from the sites.”

The economic issue at stake is much bigger than just the narrow children’s audience. If the F.T.C. were to include customer code numbers among the information that requires a parent’s consent, industry analysts say, it might someday require companies to get similar consent for a practice that represents the backbone of digital marketing and advertising — using such code numbers to track the online activities of adults.

“Once you’ve said it’s personal information for children that requires consent, you’ve set the framework for a requirement of consent to be applied to another population,” Mr. Friel said. “If it is personal information for someone that’s 12, it doesn’t cease being personal information when they are 13.”

Indeed, many of the F.T.C.’s proposed rule revisions have vocal detractors.

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Hearing Begins for Robert Bales, Accused in Afghan Murders

JOINT BASE LEWIS-McCHORD, Wash. — A military prosecutor on Monday laid out a chillingly flat recitation of the government’s case against Staff Sgt. Robert Bales, the Army officer who is accused of murdering 16 civilians this year in Afghanistan, as a pretrial hearing began in one of the nation’s worst war crimes cases in decades.

“He was lucid, coherent and responsive,” Lt. Col. Joseph Morse, the Army prosecutor, told the court in describing Sergeant Bales’s demeanor on arriving back at an Army post in Kandahar Province with blood on his clothes that, the prosecutor said, had seeped all the way through to the sergeant’s underwear.

Local families in a poor area with no electricity, Colonel Morse said, awoke early on March 11 to find a figure cloaked in darkness inside their homes, firing a weapon with apparent intent to kill. Children were shot through the thighs or in the head, he said. In one place, 11 bodies — mostly women and children, the prosecutor said — were “put in a pile and put on fire.”

Sergeant Bales, 39, an 11-year-military veteran, could face the death penalty if found guilty of the most serious charges, and the decision is specifically made to advance the case as a capital crime.

The hearing that began Monday, here at the base where Sergeant Bales was stationed, about an hour south of Seattle, was the first step in the military justice process. An Article 32 Investigation, as it is called, is roughly the equivalent of a grand jury inquiry in civilian law, aimed at determining whether sufficient evidence exists to continue to a full court-martial.

At least 35 witnesses are expected to testify, some through live video uplink from Afghanistan, over the investigation, which could last two weeks or more. The presiding officer, Col. Lee Deneke, will then make his recommendation to superiors as to the next steps, including the question of whether the death penalty should be considered, as the prosecution has requested.

Sergeant Bales’s defense lawyers on Monday reserved their opening comment for later.

If the Kandahar killings sent a shudder through U.S.-Afghan relations and through the military itself this spring as the horror of the case emerged, it seemed clear from the day’s opening testimony — and the sharp cross-examination by Sergeant Bales’s defense team — that the Article 32 hearing itself could continue the aftershocks.

One of the first witnesses, for example, Cpl. David Godwin, testifying under immunity from prosecution, told the court he had violated Army rules on the night of the killings by drinking alcohol with Sergeant Bales and another soldier.

Under direct examination by prosecutors, Corporal Godwin said the three had a couple of drinks — Jack Daniel’s, concealed in a water bottle — in one of the soldier’s rooms while watching a movie, “Man on Fire,” about a former intelligence operative who seeks violent revenge after a girl’s kidnapping. Using a word that Colonel Morse had used in outlining the case, Corporal Godwin repeatedly said that Sergeant Bales was “coherent,” and that neither Sergeant Bales nor the other soldier, as far as Corporal Godwin could tell, was intoxicated.

One of Sergeant Bales’s defense lawyers, Emma Scanlan, suggested in her cross-examination that Corporal Godwin underestimated the alcohol use and misread Sergeant Bales’s state of mind when the sergeant returned to camp in bloody clothes just before 5 a.m. Under her questioning, Corporal Godwin admitted that he had exchanged perhaps five or six sentences with Sergeant Bales outside the camp gate at the sergeant’s return, as the unit hurried to respond to reports of civilian casualties and a missing soldier.

That brief exchange, she said, is the “basis of saying he was coherent.” Sergeant Bales was also wearing a cape when he returned to the unit, and Ms. Scanlan’s questions suggested that this also indicated something odd.

“Is that normal behavior?” she asked the witness.

“No,” Corporal Godwin said.

“Do you wear a cape?” she asked.

“No,” he said.

Another of Sergeant Bales’s lawyers, John Henry Browne, has said Sergeant Bales suffered post-traumatic stress. Mr. Browne, who was en route to Afghanistan to be there for witness testimony this week, said in an interview over the weekend that issues of Sergeant Bales’s hospitalizations, for a foot wound and a head wound, and his previous deployments — three in Iraq, the fourth in Afghanistan — would also be explored in the Article 32 inquiry.

In the charge sheet that is the basis for the hearing, Sergeant Bales faces 16 counts of murder with premeditation, six counts of attempted murder with premeditation, six counts of assault, as well as other charges of impeding the investigation, use and possession of steroids and the consumption of alcohol, which is forbidden to Army soldiers in Afghanistan.

Colonel Morse, the prosecutor, said in his remarks that the blood on Sergeant Bales’s clothes forensically matched the blood of some of the victims, and Sergeant Bales’s own words, documented at the time, would show a “chilling premeditation.”

But witnesses talked about the strangeness they saw that night.

One of them, a soldier in the unit, Sgt. First Class Clayton Blackshear, described Sergeant Bales at one point in the evening as “ghostlike.” Then he shrugged. “There’s no word in the English language,” he said.

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