DealBook: Choice for S.E.C. Is Ex-Prosecutor, in Signal to Wall St.

2:48 p.m. | Updated President Obama tapped Mary Jo White, a former United States attorney turned white-collar defense lawyer, to be the next chairwoman of the Securities and Exchange Commission.

Mr. Obama announced the nomination at the White House on Thursday afternoon. As part of the event, the White House also renominated Richard Cordray to lead the Consumer Financial Protection Bureau, a role he has held for the last year under a recess appointment.

In its choice of Ms. White and Mr. Cordray, the White House is sending a signal about the importance of holding Wall Street accountable for wrongdoing. Both picks are former prosecutors.

Regulatory chiefs are often market experts or academics. But Ms. White spent nearly a decade as United States attorney in New York, the first woman named to this post. Among her prominent cases, she oversaw the prosecution of the mafia boss John Gotti as well as the people responsible for the 1993 World Trade Center bombing. She is now working the other side, defending Wall Street firms and executives as a partner at Debevoise & Plimpton.

As the attorney general of Ohio, Mr. Cordray made a name for himself suing Wall Street companies in the wake of the financial crisis. He undertook a series of prominent lawsuits against big names in the finance world, including Bank of America and the American International Group.

The White House expects Ms. White, 65, and Mr. Cordray, 53, to draw on their prosecutorial backgrounds while carrying out a broad regulatory agenda under the Dodd-Frank Act. Congress enacted the law, which mandates a regulatory overhaul, in response to the 2008 financial crisis.

Jay Carney, the White House press secretary, said Ms. White has “an incredibly impressive resume” and that her appointment along with the renomination of Mr. Cordray sends an important signal.

“The president believes that appointment and the renomination he’s making today demonstrate the commitment he has to carrying out Wall Street reform, making sure we have the rules of the road that are necessary and that are being enforced in a way” to avoid a crisis like that of 2008, Mr. Carney said.

Another White House official added that Ms. White and Mr. Cordray will “serve in top enforcement roles” in part so that “Wall Street is held accountable and middle-class Americans never again are harmed by the abuses of a few.”

Ms. White will succeed Elisse B. Walter, a longtime S.E.C. official, who took over as chairwoman after Mary L. Schapiro stepped down as the agency’s leader in December. Mr. Cordray joined the consumer bureau in 2011 as its enforcement director.

The nominations could face a mixed reception in Congress. The Senate already declined to confirm Mr. Cordray, with Republicans vowing to block any candidate for the consumer bureau, a new agency created to rein in the financial industry’s excesses. It is unclear whether the White House and Mr. Cordray will face another standoff the second time around.

Mr. Carney argued that there were no substantive objections to Mr. Cordray’s confirmation, only political ones. “He is absolutely the right person for the job,” Mr. Carney said.

Ms. White is expected to receive broader support on Capitol Hill. Senator Charles E. Schumer, a New York Democrat, declared that Ms. White was a “tough-as-nails prosecutor” who “will not shy away from enforcing the laws to ensure that markets operate fairly.”

But she could face questions about her command of arcane financial minutiae. She was a director of the Nasdaq stock market, but has otherwise built her career on the law-and-order side of the securities industry.

People close to the S.E.C. note, however, that her husband, John W. White, is a veteran of the agency. From 2006 through 2008, he was head of the S.E.C.’s division of corporation finance, which oversees public companies’ disclosures and reporting.

Some Democrats also might question her path through the revolving door, in and out of government. While seen as a strong enforcer as a United States attorney, she went on in private practice to defend some of Wall Street’s biggest names, including Kenneth D. Lewis, a former head of Bank of America. She also represented JPMorgan Chase and the board of Morgan Stanley. Last year, the N.F.L. hired her to investigate allegations that the New Orleans Saints carried out a bounty system for hurting opponents.

Consumer advocates generally praised her appointment on Thursday. “Mary Jo White was a tough, smart, no-nonsense, broadly experienced and highly accomplished prosecutor,” said Dennis Kelleher, head of Better Markets, the nonprofit advocacy group. “She knew who the bad guys were, went after them and put them in prison when they broke the law.”

The appointment comes after the departure of Ms. Schapiro, who announced she would step down from the S.E.C. in late 2012. In a four-year tenure, she overhauled the agency after it was blamed for missing the warning signs of the crisis.

Since her exit, Washington and Wall Street have been abuzz with speculation about the next S.E.C. chief. President Obama quickly named Ms. Walter, then a Democratic commissioner at the agency, but her appointment was seen as a short-term solution. It is unclear if she will shift back to the commissioner role if Ms. White is confirmed.

In the wake of Ms. Schapiro’s exit, several other contenders surfaced, including Sallie L. Krawcheck, a longtime Wall Street executive. Richard G. Ketchum, chairman and chief executive of the Financial Industry Regulatory Authority, Wall Street’s internal policing organization, was also briefly mentioned as a long-shot contender.

Peter Baker and Kitty Bennett contributed reporting

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New Mutations Discovered in Melanomas





In a leap forward in understanding the basic science of one of the most lethal cancers, two groups of researchers have found mutations in most melanomas that are unlike any they have seen before in cancer. The changes are in regions that control genes, not in the genes themselves. The mutations are exactly the type caused by exposure to ultraviolet light, indicating they might be among the first DNA changes in a cell’s path to melanoma.




The discoveries, published online Thursday in two papers in the journal Science Express, do not immediately suggest new treatments or ways to prevent melanoma, researchers said. But the findings help explain how melanomas — and, possibly, other cancers — develop and what drives their growth, insights that may be critical to long-term efforts to develop ways to prevent or stop the cancer.


For years, cancer researchers have searched for mutations in genes, but this time, they looked for — and found — mutations in a region that regulates genes. They did it by examining the entire DNA of multiple tumors, studying not just genes but also what has been called the dark matter, the 99 percent of the DNA that includes regions that control genes.


“You could think of this as one glimmer in what has been called cancer’s dark matter,” said Dr. Levi A. Garraway of the Dana-Farber Cancer Institute and the Broad Institute of Harvard and M.I.T.


The complete DNA sequences of 70 malignant melanomas led to the new discovery. A small control region was mutated in 7 out of 10 of the tumors, and also, the investigators found, in liver and bladder cancers. The cancer cells had one of two tiny changes that together were more common than any mutation ever found in the genes of melanoma.


A team led by Rajiv Kumar of the German Cancer Research Center in Heidelberg and Dirk Schadendorf of the University of Essen looked for the mutations in a family whose members tended to get melanoma. Four relatives who developed melanoma had inherited one of them, while four who remained melanoma-free did not have it. They also found the mutation in a 36-year-old member of the family who had not developed melanoma but had had many moles, often a sign of risk in families prone to melanoma.


Their findings indicate that those who inherit the mutations might be born with cells that have taken a first step toward cancer.


The mutations spur cells to make an enzyme, telomerase, that keeps cells immortal by preventing them from gradually losing the ends of their chromosome, the telomeres. When telomeres erode, a cell dies. But the enzyme also has other, poorly understood functions that are thought to keep cancer cells alive, said Robert Weinberg, an M.I.T. researcher who studies telomerase and cancer and was not involved with the research. “The paradigm that it does nothing but extend telomeres is a gross oversimplification,” he said.


Abundant telomerase is so important to cancers that it occurs in 90 percent of them, said Immaculata De Vivo, a Harvard Medical School researcher who studies telomerase and cancer and directs a DNA sequencing program. She, too, was not involved with the research.


The results of the two studies presented in the papers “are like a court of law — it’s the preponderance of the evidence,” she said. “We all knew telomerase was important for cancer, but now we are finding the mechanisms, the machinery.”


Scientists were surprised that the mutations in the dark matter of melanoma tumors were so commonplace. Dr. Garraway and his colleagues had the entire DNA sequences for a collection of melanomas — genes as well as the rest of the DNA including areas that turn genes on and off.


“We said, ‘Let’s just take a look and see if there are any mutations in a regulatory region,” Dr. Garraway said.


At first, they looked at the DNA sequences of 19 tumors. They were amazed to find one or the other of the two mutations in 17 of them. So the researchers decided to look at 51 additional melanomas and a handful of bladder and liver cancers. The mutations popped up again.


“It was really quite striking,” Dr. Garraway said.


But it’s not clear how to reverse the mutations’ cancer-causing effects, Dr. Garraway said. And although people have long wanted to block telomerase production in cancer cells, they have not found a drug to do it.


Still, the findings are highly significant, experts said.


“We have always known that just looking at genes alone would provide a limited number of answers about why cancer develops,” said Elaine Mardis of Washington University, who was not involved with the research. “The brakes or the gas that control the genes that cause cancer are as important as gene mutations,” she said. The new papers, Dr. Mardis added, “show where additional answers may lie.”


Read More..

New Mutations Discovered in Melanomas





In a leap forward in understanding the basic science of one of the most lethal cancers, two groups of researchers have found mutations in most melanomas that are unlike any they have seen before in cancer. The changes are in regions that control genes, not in the genes themselves. The mutations are exactly the type caused by exposure to ultraviolet light, indicating they might be among the first DNA changes in a cell’s path to melanoma.




The discoveries, published online Thursday in two papers in the journal Science Express, do not immediately suggest new treatments or ways to prevent melanoma, researchers said. But the findings help explain how melanomas — and, possibly, other cancers — develop and what drives their growth, insights that may be critical to long-term efforts to develop ways to prevent or stop the cancer.


For years, cancer researchers have searched for mutations in genes, but this time, they looked for — and found — mutations in a region that regulates genes. They did it by examining the entire DNA of multiple tumors, studying not just genes but also what has been called the dark matter, the 99 percent of the DNA that includes regions that control genes.


“You could think of this as one glimmer in what has been called cancer’s dark matter,” said Dr. Levi A. Garraway of the Dana-Farber Cancer Institute and the Broad Institute of Harvard and M.I.T.


The complete DNA sequences of 70 malignant melanomas led to the new discovery. A small control region was mutated in 7 out of 10 of the tumors, and also, the investigators found, in liver and bladder cancers. The cancer cells had one of two tiny changes that together were more common than any mutation ever found in the genes of melanoma.


A team led by Rajiv Kumar of the German Cancer Research Center in Heidelberg and Dirk Schadendorf of the University of Essen looked for the mutations in a family whose members tended to get melanoma. Four relatives who developed melanoma had inherited one of them, while four who remained melanoma-free did not have it. They also found the mutation in a 36-year-old member of the family who had not developed melanoma but had had many moles, often a sign of risk in families prone to melanoma.


Their findings indicate that those who inherit the mutations might be born with cells that have taken a first step toward cancer.


The mutations spur cells to make an enzyme, telomerase, that keeps cells immortal by preventing them from gradually losing the ends of their chromosome, the telomeres. When telomeres erode, a cell dies. But the enzyme also has other, poorly understood functions that are thought to keep cancer cells alive, said Robert Weinberg, an M.I.T. researcher who studies telomerase and cancer and was not involved with the research. “The paradigm that it does nothing but extend telomeres is a gross oversimplification,” he said.


Abundant telomerase is so important to cancers that it occurs in 90 percent of them, said Immaculata De Vivo, a Harvard Medical School researcher who studies telomerase and cancer and directs a DNA sequencing program. She, too, was not involved with the research.


The results of the two studies presented in the papers “are like a court of law — it’s the preponderance of the evidence,” she said. “We all knew telomerase was important for cancer, but now we are finding the mechanisms, the machinery.”


Scientists were surprised that the mutations in the dark matter of melanoma tumors were so commonplace. Dr. Garraway and his colleagues had the entire DNA sequences for a collection of melanomas — genes as well as the rest of the DNA including areas that turn genes on and off.


“We said, ‘Let’s just take a look and see if there are any mutations in a regulatory region,” Dr. Garraway said.


At first, they looked at the DNA sequences of 19 tumors. They were amazed to find one or the other of the two mutations in 17 of them. So the researchers decided to look at 51 additional melanomas and a handful of bladder and liver cancers. The mutations popped up again.


“It was really quite striking,” Dr. Garraway said.


But it’s not clear how to reverse the mutations’ cancer-causing effects, Dr. Garraway said. And although people have long wanted to block telomerase production in cancer cells, they have not found a drug to do it.


Still, the findings are highly significant, experts said.


“We have always known that just looking at genes alone would provide a limited number of answers about why cancer develops,” said Elaine Mardis of Washington University, who was not involved with the research. “The brakes or the gas that control the genes that cause cancer are as important as gene mutations,” she said. The new papers, Dr. Mardis added, “show where additional answers may lie.”


Read More..

Media Decoder Blog: A Resurgent Netflix Beats Projections, Even Its Own

1:51 p.m. | Updated For all those who have doubted its business acumen, Netflix had a resounding answer on Wednesday: 27.15 million.

That’s the number of American homes that were subscribers to the streaming service by the end of 2012, beating the company’s own projections for the fourth quarter after a couple of quarters of underwhelming results.

Netflix’s growth spurt in streaming — up by 2.05 million customers in the United States, from 25.1 million in the third quarter — was its biggest in nearly three years, and helped the company report net income of $7.9 million, surprising many analysts who had predicted a loss.

The results reflected just how far Netflix has come since the turbulence of mid-2011, when its botched execution of a new pricing plan for its services — streaming and DVDs by mail — resulted in an online flogging by angry customers. Investors battered its stock price, sending it from a high of around $300 in 2011 to as low as $53 last year.

“It’s risen from the ashes,” said Barton Crockett, a senior analyst at Lazard Capital Markets. “A lot of investors have been very skeptical that Netflix will work. With this earnings report, they’re making a strong argument that the business is real, that it will work.”

Investors, cheered by the results, sent Netflix shares soaring. By Thursday afternoon the shares were up more than 37 percent to $141.49.

Netflix’s fourth-quarter success was a convenient reminder to the entertainment and technology industries that consumers increasingly want on-demand access to television shows and movies. Streaming services by Amazon, Hulu and Redbox are all competing on the same playing field, but for now Netflix remains the biggest such service, and thus a pioneer for all the others.

“Our growth and our competitors’ growth shows just how large the opportunity is for Internet TV, where people get to control their viewing experience,” Netflix’s chief executive, Reed Hastings, said in a telephone interview Wednesday evening.

Questions persist, though, about whether Netflix will be able to attract enough subscribers to keep paying its ever-rising bills to content providers, which total billions of dollars in the years to come. The company said on Wednesday that it might take on more debt to finance more original programs, the first of which, the political thriller “House of Cards,” will have its premiere on the service on Feb. 1. Netflix committed about $100 million to make two seasons of “House of Cards,” one of five original programs scheduled to come out on the service this year.

“The virtuous cycle for us is to gain more subscribers, get more content, gain more subscribers, get more content,” Mr. Hastings said in an earnings conference call.

The company’s $7.9 million profit for the quarter represented 13 cents a share, surprising analysts who had expected a loss of 12 cents a share. The company said revenue of $945 million, up from $875 million in the quarter in 2011, was driven in part by holiday sales of new tablets and television sets.

Netflix added nearly two million new subscribers in other countries, though it continued to lose money overseas, as expected, and said it would slow its international expansion plans in the first part of this year.

The “flix” in Netflix, its largely forgotten DVD-by-mail business, fared a bit better than the company had projected, posting a loss of just 380,000 subscribers in the quarter, to 8.22 million. The losses have slowed for four consecutive quarters, indicating that the homes that still want DVDs really want DVDs.

On the streaming side, Netflix’s retention rate improved in the fourth quarter, suggesting growing customer satisfaction.

Asked whether the company’s reputation had fully recovered after its missteps in 2011, Mr. Hastings said, “We’re on probation at this point, but we’re not out of jail.”

He has emphasized subscriber happiness, even going so far as to say on Wednesday that “we really want to make it easy to quit” Netflix. If the exit door is well marked, he asserted, subscribers will be more likely to come back.

The hope is that original programs like “House of Cards” and “Arrested Development” will lure both old and new subscribers to the service. Those programs, plus the film output deal with the Walt Disney Company announced in December, affirm that Netflix cares more and more about being a gallery — with showy pieces that cannot be seen anywhere else — and less about being a library of every film and TV show ever made.

“They’re morphing into something that people understand,” said Mr. Crockett of Lazard Capital.

Mr. Hastings said this had been happening for years, but that it was becoming more apparent now to consumers and investors.

Mr. Hastings’s letter to investors brought up the elephant in the room, the activist investor Carl C. Icahn, who acquired nearly 10 percent of the company’s stock last October. Mr. Icahn, known for his campaigns for corporate sales and revampings, stated then that Netflix “may hold significant strategic value for a variety of significantly larger companies.”

Netflix subsequently put into place a shareholder rights plan, known as a poison pill, to protect itself against a forced sale by Mr. Icahn.

The company said on Wednesday, “We have no further news about his intentions, but have had constructive conversations with him about building a more valuable company.”

Factoring in the stock’s 30 percent rise since November and the after-hours action on Wednesday, Mr. Icahn’s stake has now more than doubled in value, to more than $700 million from roughly $320 million.

A version of this article appeared in print on 01/24/2013, on page B1 of the NewYork edition with the headline: A Resurgent Netflix Beats Projections, Even Its Own.
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DealBook: Live Q. & A. on Wall Street's Untouchables

On Tuesday, “Frontline” investigated why the leaders of Wall Street had escaped prosecution for their role in the country’s financial crisis.

Peter Eavis of DealBook is moderating a conversation beginning at 2 p.m. Eastern time with the show’s producer, Martin Smith. Watch the show above and submit your questions now.

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Well: Can You Read the Face of Victory?

Picture a tennis player in the moment he scores a critical point and wins a tournament. Now picture his opponent in the instant he loses the point that narrowly cost him the title. Can you tell one facial expression from the other, the look of defeat from the face of victory?

Try your hand at the images below, of professional tennis players at competitive tournaments. All were included in a new study that suggests that the more intense an emotion, the harder it is to distinguish it in a facial expression.

The researchers found that when overwhelming feelings set in, the subtle cues that convey emotion are lost, and facial expressions tend to blur. The face of joy and celebration often appears no different from the look of grief and devastation. Winning looks like losing. Pain resembles pleasure.

But that is not the case when it comes to body language. In fact, the new study found, people are better able to identify extreme emotions by reading body language than by looking solely at facial expressions. But even though we pick up on cues from the neck down to interpret emotion, we instinctively assume that it is the face that tells us everything, said Hillel Aviezer, a psychologist who carried out the new research with colleagues at Princeton University.

“When emotions run high, the face becomes more malleable: it’s not clear if there’s positivity or negativity going on there,” he said. “People have this illusion that they’re reading all this information in the face. We found that the face is ambiguous in these situations and the body is critical.”

Dr. Aviezer and his colleagues, who published their work in the journal Science, carried out four experiments in which subjects were asked to identify emotions by looking at photographs of people in various situations. In some cases, the subjects were shown facial expressions alone. In others, they looked at body language, either alone or in combination with faces. The researchers chose photographs taken in moments when emotions were running high – as professional tennis players celebrated or agonized, as loved ones grieved at funerals, as needles punctured skin during painful body piercings.

According to classic behavioral theories, facial expressions are universal indicators of mood and emotion. So the more intense a particular emotion, the easier it should be to identify in the face. But the study showed the exact opposite. As emotions peaked in intensity, expressions became distorted, similar to the way cranking up the volume on a stereo makes the music unrecognizable.

“When emotions are extremely high, it’s as if the speakers are blaring and the signal is degraded,” said Dr. Aviezer, who is now at Hebrew University in Jerusalem. “When the volume is that high, it’s hard to tell what song is playing.”

In one experiment, three groups of 15 people were shown photographs of professional tennis players winning and losing points in critical matches. When the subjects were shown the players’ expressions alone — separated from their bodies — they correctly identified their emotion only half of the time, which was no better than chance. When they looked at images of just the body with the face removed — or the body with the face intact — they were far more accurate at identifying emotions. Yet when asked, 80 percent said they were relying on the facial expressions alone. Twenty percent said they were going by body and facial cues together, and not a single one said they were looking only for gestures from the neck down.

Then, the researchers scrambled the photos, mixing faces and bodies together. The upset faces of players were randomly spliced onto the bodies of celebrating players, and vice versa.

When asked to judge the emotions, the subjects answered according to the body language. The facial expression did not seem to matter. If a losing face was spliced onto a celebrating body, the subjects tended to guess victory and jubilation. If they were looking at the face of an exuberant player placed on the body of an anguished player, the subjects guessed defeat and disappointment.

Although they were not aware of it, the subjects were clearly looking at body language, Dr. Aviezer said. Clenched fists, for example, suggested victory and celebration, while open or outstretched hands indicated a player’s disappointment.

In another experiment, the researchers looked at four other emotional “peaks.” For pain, they used the faces of men and women undergoing piercings. Grief was captured in images of mourners at a funeral. For joy, they used images of people on the reality television show “Extreme Makeover: Home Edition,” capturing their impassioned faces at the very moment they were shown their beautiful, brand new homes. And for pleasure, they went with a rather risqué option: images from an erotic Web site that showed faces at the height of orgasm.

Once again, the subjects could not correctly guess the emotions by looking at facial expressions alone. In fact, they were more likely to interpret “positive” faces as being “negative” more than the actual negative ones. When faces showing pleasure were spliced onto the body of someone in pain, for example, the subjects relied on body language and were often unaware that the facial expression was conveying the opposite emotion.

“There’s this point on ‘Extreme Makeover’ where people see their new house for the first time and the camera is on their face, so we have these wonderful photos of their expressions,” Dr. Aviezer said. “At that moment, they look like the most miserable people in the world. For a few seconds, it’s as if they are seeing their house burn down. They don’t look like you would expect.”

The researchers noted that they were not suggesting that facial expressions never indicate specific feelings – only that when the emotion is intense and at its peak, for those first few seconds, the expression is ambiguous. Dr. Aviezer said the facial musculature simply might not be suited for accurately conveying extremely intense feelings – in part because in the real world, so much of that is conveyed through situational context.

And this may not be limited to facial cues.

“Consider intense vocal expressions of grief versus joy or pleasure versus pain,” the researchers wrote in their paper. For example, imagine sitting in a coffee shop and hearing someone behind you shriek. Is it immediately obvious whether the emotion is a positive or negative one?

“When people are experiencing a very high level of excitation,” Dr. Aviezer said, “then we see this overlap in expressions.”

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DealBook: Microsoft May Back Dell Buyout

The effort to take Dell private has gained a prominent, if unusual, backer: Microsoft.

The software giant is in talks to help finance a takeover bid for Dell that would exceed $20 billion, a person briefed on the matter said on Tuesday. Microsoft is expected to contribute up to several billion dollars.

An investment by Microsoft — if it comes to pass — could be enough to push a leveraged buyout of the struggling computer maker over the goal line. Silver Lake, the private equity firm spearheading the takeover talks, has been seeking a deep-pocketed investor to join the effort. And Microsoft, which has not yet made a commitment, has more than $66 billion in cash on hand.

Microsoft and Silver Lake, a prominent investor in technology companies, are no strangers. The private equity firm was part of a consortium that sold Skype, the online video-chatting pioneer, to Microsoft for $8.5 billion nearly two years ago. And the two companies had discussed teaming up to make an investment in Yahoo in late 2011, before Yahoo decided against selling a minority stake in itself.

A vibrant Dell is an important part of Microsoft’s plans to make Windows more relevant for the tablet era, when more and more devices come with touch screens. Dell has been one of the most visible supporters of Windows 8 in its products.

That has been crucial at a time when Microsoft’s relationships with many PC makers have grown strained because of the company’s move into making computer hardware with its Surface family of tablets.

Frank Shaw, a spokesman for Microsoft, declined to comment.

If completed, a buyout of Dell would be the largest leveraged buyout since the financial crisis, reaching levels unseen since the takeovers of Hilton Hotels and the Texas energy giant TXU. Such a deal is taking advantage of Dell’s still-low stock price and the abundance of investors willing to buy up the debt issued as part of a transaction to take the company private. And Silver Lake has been working with Dell’s founder, Michael S. Dell, who is expected to contribute his nearly 16 percent stake in the company to a takeover bid.

Yet while many aspects of the potential deal have fallen into place, including a potential price of up to around $14 a share, talks between Dell and its potential buyers may still fall apart.

Shares of Dell closed up 2.2 percent on Tuesday, at $13.12. They began rising after CNBC reported Microsoft’s potential involvement in a leveraged buyout. Microsoft shares slipped 0.4 percent, to $27.15.

Microsoft’s lending a hand to Dell could make sense at a time when the PC industry is facing some of the biggest challenges in its history. Dell is one of Microsoft’s most significant, longest-lasting partners in the PC business and among the most committed to creating machines that run Windows, the operating system that is the foundation of much of Microsoft’s profits.

But PC sales were in a slump for most of last year, as consumers diverted their spending to other types of devices like tablets and smartphones. Dell, the third-biggest maker of PCs in the world, recorded a 21 percent decline in shipments of PCs during the fourth quarter of last year from the same period in 2011, according to IDC.

In a joint interview in November, Mr. Dell and Steven A. Ballmer, Microsoft’s chief executive, exchanged friendly banter, as one would expect of two men who have been in business together for decades.

Mr. Dell said Mr. Ballmer had gone out of his way to reassure him that Microsoft’s Surface computers would not hurt Dell sales.

“We’ve never sold all the PCs in the world,” said Mr. Dell, sitting in a New York hotel room brimming with new Windows 8 computers made by his company. “As I’ve understood Steve’s plans here, if Surface helps Windows 8 succeed, that’s going to be good for Windows, good for Dell and good for our customers. We’re just fine with all that.”

Microsoft has been willing to open its purse strings in the past to help close partners. Last April, Microsoft committed to invest more than $600 million in Barnes & Noble’s electronic books subsidiary, in a deal that ensures a source of electronic books for Windows devices. Microsoft also agreed in 2011 to provide the Finnish cellphone maker Nokia billions of dollars’ worth of various forms of support, including marketing and research and development assistance, in exchange for Nokia’s adopting Microsoft’s Windows Phone operating system.

A version of this article appeared in print on 01/23/2013, on page B1 of the NewYork edition with the headline: Microsoft May Back Dell Buyout.
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Funeral Bombing in Northern Iraq Kills at Least 35 Mourners


Reuters


A man wounded by a suicide bomber in Tuz Khurmato district in northern Iraq was treated at a hospital in Kirkuk.







BAGHDAD, Iraq — A crowded tent full of Turkmen funeral mourners in northern Iraq was transformed into a mass killing ground on Wednesday by a suicide bombing that left at least 35 people dead and 117 wounded, regional officials and tribal leaders said, calling it a genocidal attack meant to further stoke the already-inflamed sectarian tensions in the country.




Both the dead and wounded victims included a number of high-ranking regional dignitaries, military officers, professors and religious men among the Turkmen population of the Tuz Khurmato district in Salahuddin Province, an area in the Kurdish north also claimed by Arabs and Turkmens. It came a day after an extended outbreak of sectarian shootings and bombings in the country that killed at least 24 Iraqis.


Mourners at the Imam Ali mosque had been paying their respects to a Turkmen employee of the Ministry of Health who had been killed in the mayhem the day before, the brother-in-law of a deputy in the Iraqi Turkmen Front, a political party. They had packed into a funeral tent for the ceremony when the suicide bomber, apparently masquerading as one of the aggrieved, blew himself up.


Turkmen leaders were outraged.


“We demand to have international forces to secure us, for the Turkmen and our areas,” said Faid Alla, the head of a Turkmen tribe. “We are being targeted and our existence in Iraq is very dangerous and we are under genocide. The central government is doing nothing for us.”


Tuz Khurmato, south of Kirkuk in an oil-rich area, was the site two months ago of a sectarian-tinged confrontation over disputed territory between forces loyal to the Iraqi government in Baghdad and the Kurdish regional government, which has its own armed forces.


Iraq has been increasingly consumed by sectarian attacks and political turmoil since December, when the home of the country’s Sunni finance minister was raided by security forces loyal to Prime Minister Nuri Kamal al-Maliki, a Shiite. His political bloc has been accused by Sunnis and others of seeking to monopolize power ahead of provincial elections this spring.


Mr. Maliki, who took power during the American-led military occupation of Iraq, has denied the accusations and rejected demands by rivals that he resign.


The instability has been a growing source of concern for the United States, which withdrew its military forces from Iraq a year ago.


Rick Gladstone contributed reporting from New York.



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Bits Blog: A New Group Aims to Make Programming Cool

The presence of technology in the lives of most teenagers hasn’t done much to entice more of them to become programmers. So Hadi Partovi has formed a nonprofit foundation aimed at making computer science as interesting to young people as smartphones, Instagram and iPads.

Mr. Partovi, a successful Seattle-based technology investor and entrepreneur, founded Code.org with the goal of increasing the teaching of computer science in classrooms and sparking more excitement about the subject among students. Mr. Partovi, who is an adviser and investor in Facebook, Dropbox and Airbnb, was inspired to create the Code.org after seeing technology companies struggle to find enough programming talent.

“Living in the tech industry, it’s very clear to me their No. 1 problem is the shortage of engineers,” said Mr. Partovi, 40, who is working on the foundation with his twin brother, Ali. “There’s no end to what’s going to be touched by software.”

Code.org’s initial effort will be a short film, currently being edited, that will feature various luminaries from the technology industry talking about how exciting and accessible programming is. Two of the most famous programmers and entrepreneurs in history — Mark Zuckerberg, the chief executive of Facebook, and Bill Gates, the chairman and co-founder of Microsoft – were among the people interviewed for the film, according to a person with knowledge of the project who wasn’t authorized to discuss details about it.

Lesley Chilcott, a producer of the documentaries “Waiting for ‘Superman’” and “An Inconvenient Truth,” is making the film.

Mr. Partovi’s nonprofit is part of a much wider push by the technology industry to figure out how to train more people in computer science at a young age. While bitter rivals like Microsoft and Google don’t agree on a lot of things, one topic on which they do is the alarming mismatch between the relatively small number of Americans being trained in computer science and the employment opportunities that await them.

There are several statistics that tell that story: the number of United States students receiving bachelor’s degrees in computer science, and the percentage of high school students earnings credits in the field, are both on the decline — even though there will be 150,000 computing-job openings every year for the next seven years, by one estimate. Microsoft has gone so far as to send its engineers into high schools to help teach computer science.

Not all of those opportunities are at sexy Internet companies like Google, which can be notoriously picky about the people it hires. Many of them are in government, banks and other areas. Many of the jobs in life sciences and other fields are expected to be programming-related because of the growing importance of big data to those professions.

“There are so many wild ideas about where technology will take us,” said Mr. Partovi, who was also a member of the founding teams of iLike and Tellme. “All of that will be powered by software.”

Code.org will also create a database to help parents find schools where computer science is already being taught and to advocate ways of making it more available to students.

These will not be easy challenges to overcome. Mr. Partovi and others in the technology business believe a lack of qualified teachers is one of the most serious problems blocking greater access to computer science in classrooms. Even programmers with a passion for teaching have a difficult time turning down more lucrative job offers, especially if they’ve got piles of student debt.

“It’s difficult to convince people who are getting the highest salaries in industry to get one of the lowest-paying jobs,” said Mr. Partovi, who is initially funding the foundation with his brother.

It also isn’t clear that Code.org’s film will succeed where modern technologies themselves have failed: in getting young people excited about programming. Mr. Partovi’s theory is that devices like the iPhone do a much better job at concealing their complexity from their users, which is great for people who truly have no interest in fussing around with code.

Operating PCs in the early days meant learning arcane DOS commands, which helped get people like Mr. Partovi, a computer science graduate from Harvard, interested in programming.

Mr. Partovi believes that pop culture depictions of programmers – think Mr. Zuckerberg in “The Social Network” – have not helped dispel the image of the typical coder as a “freakish, white boy genius stuck in a basement.” He said the film will seek to broaden the appeal of programming by showing women programmers and emphasizing its collaborative nature.

“The goal of the video is to challenge stereotypes,” he said.

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Well Pets: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor house cat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richters’ house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany in which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can be shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

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