White House Again Hits Fox News

In an interview with Time Magazine released today, White House Communications Director Anita Dunn offered a blunt assessment of Fox News: "It's opinion journalism masquerading as news," she said. "They are boosting their audience. But that doesn't mean we are going to sit back."

As CNN notes, the White House has long had an adversarial relationship with the conservative news channel. President Obama pointedly left the network off the list when he made the rounds at the networks in September to push his health care plan, and it slammed Fox News in a blog post last Wednesday, complaining of a continued "disregard for the facts."

It may not be all acrimony, however: Politico reported on Tuesday that White House senior adviser David Axelrodmet with Fox News chairman and CEO Roger Ailes in September. The "cordial" conversation reportedly revolved around Fox News's coverage and the relationship between the network and the White House.

Fox News host Glenn Beck has called Mr. Obama a "racist", and commentators on the cable network have regularly attacked the president.

The flaws of science news via news conference - more on AIDS vaccine "breakthrough"

When the U.S. Army and its collaborators in Thailand announced at press conferences on 24 September that a large clinical trial of an AIDS vaccine had lowered the rate of new HIV infections by about one-third, researchers were surprised and encouraged. Although it was only a modest reduction, it was the first positive result from any AIDS vaccine trial.

Now some researchers who have seen more of the data in confidential briefings are complaining that a fuller analysis undermines even cautious claims of success, and they are raising questions about the way the results were announced.

The press conference and press releases discussed an analysis that included all 16,000 people who participated in the trial, except for seven who were infected before receiving any doses of the two vaccines that were used in combination. Seventy-four people in the placebo arm of the study became infected with HIV, while the similarly sized vaccinated group only had 51 infections--a 31.2% efficacy. The analysis indicated that there was about a 96% level of confidence that the effect was real and not due to chance--just above the 95% cutoff that is widely used as a measure of statistical significance.

In the private briefings, researchers learned that a second analysis, which is usually performed in vaccine studies and was part of the Thai study's design, also found that vaccine recipients had fewer infections, but the reduction was not statistically significant and the level of efficacy was slightly lower. This analysis eliminated people in both groups who did not rigorously follow the protocols. "Anything that really works, you'll have enough robustness in results to be significant with both analyses," says Douglas Richman, an AIDS researcher at the University of California, San Diego, a longtime critic of the study. Richman did not discuss the specific results with Science.

"The press conference was not a scholarly, rigorously honest presentation," said one leading HIV/AIDS investigator, who like others asked that his name not be used. "It doesn't meet the standards that have been set for other trials, and it doesn't fully present the borderline results. It's wrong." Two biostatisticians who specialize in HIV prevention trials and have not seen the data, said that the results from all participants are the more important data, but they were puzzled that the press conference did not include the analysis that excluded those who didn't follow the protocols. "I think if people saw [the two analyses] diverging in a vaccine study, they'd have a lot of questions," says David Glidden, a biostatician at the University of California, San Francisco.

Baby Talk with New Mom Jennifer Hudson

Jennifer Hudson is in her first months of motherhood and she's opening up about the bottle-feedings and lullabies that go with taking care of her baby son David Daniel Jr.

"I love being nurturing and caring because I love to see other people happy," Hudson -- who welcomed first child on Aug. 10 with fiancé, David Otunga -- tells People magazine. "Who better to devote my time to than my own child?"

Hudson and Otunga kept her pregnancy secret for as long as possible, saying of the secret, "David and I were the only people who knew for a long time. I would forget I was pregnant, it was so easy. I didn’t have any morning sickness, no cravings either. I just thought, ‘Oh, well, we’ll wait until it’ll tell on itself.’ I didn’t show until I was seven months so that made it easy right there."

The singer/actress says of her son's playful personality, "His favorite time to smile now is diaper changes. Or when he spits up on you – he just cracks up like he thinks it’s the funniest thing. And his bottle is his pacifier. With a pacifier, it’s like he knows, ‘Ain’t nothing come out of here. No, I don’t want that. Where’s the real deal?’ His best friend is that bottle; that’s all he wants."

She tells People that baby David will "just turn off like a switch" when she sings to him and as for his feedings, Hudson says she's "never seen a baby eat like he does."

So will the award winning actress and singer's son go down the same career path as his mother? "We'll definitely encourage education. His father is an education fanatic so we definitely want him to get an education and go to school," she tells the publication. "My mom always said, 'Whatever you want to do, I'll support you as long as you’re happy.' So I will do the same."

Oregonian memo: Many current news teams will 'cease to exist'

A memo from Oregonian executive editor Peter Bhatia today outlined a reorganization plan in which many teams of reporters focused on traditional coverage areas will "cease to exist" in favor of two larger teams. A separate group will handle editing and production.

The memo makes reference to thebuyout offer made last month and presumes a smaller workforce. It does not mention newsroom layoffs, thoughprevious memos have made that possibility clear.

"We will not abandon our foundation of beat reporting," the memo says, "but beats will be redefined along areas of expertise of most interest to our readers. Some beats will be eliminated because with fewer people we cannot cover everything that we have in the past."

With "some small exceptions," teams on the fourth and fifth floors of the Oregonian building will be dissolved. Those include online, business, photography, news teams, copy desk, features and A&E (O!). Other teams on those floors — sports, Homes & Gardens, FOODday, travel and editorial — will remain separate.

Eliminating these smaller groups does not mean that their corresponding newspaper sections will be eliminated, sources at the paper confirm.

One of the new, larger groups, titled "Local Expertise and Enterprise Reporting," will include 60 to 70 reporters, editors and support staff. Beats will include politics and government, sustainability, business and economy, and arts and culture. This group will also cover breaking news, watchdog and investigative reporting, and narrative storytelling.

The other group of reporters, titled "Community," will cover zoned content (stories focused on, and printed for, specific geographic areas) as well as hyperlocal websites that are in development. But community webpages will not only be geographically specific. "Community more and more also means communities of interest," the memo says, "and hyperlocal topic pages will be a key part of our Web work."

"For most reporters," the memo continues, "beats will still be the primary focus, creating the enterprising journalism we value. With a smaller staff there will be increased expectations of productivity, flexibility and greater responsibility for Web work. Reporters will need to jump in on issues that require our attention more often than has been the case and work different hours as news and Web needs dictate."

The memo also lays out changes to the editing process, a reduced focus on the evening print deadline, an increased emphasis on audience interaction, and the primary differences between print and online. Read the memo in full after the break. Bracketed explanations are ours:

Oct. 7, 2009
TLs [Team Leaders]:

With the buyout offer on the table, we want you to know where we are headed in reorganizing our newsroom operations. This note represents the why and how of where we are going.

We are committed to keeping The Oregonian strong, both in print and online. It is important to understand that publishing a compelling newspaper is absolutely essential, even as we increase our presence on the Web and embrace the tools it offers us. We are committed to the principles and values that have defined print journalism and will not shirk our responsibility to serve as a watchdog on government and the powerful. At the same time, we need to evolve our journalism, embrace the two-way nature of the Web world and be even more responsive to a public that expects more of a conversation with us. We also recognize that print and the Web are different creatures and require different emphases:

Our focus in print:

• Reveal how power is used, decisions are made and the impact on citizens.
• Explain how all manner of things really work.
• Question and explore relevant issues in depth, and explain their substance and context.
• Introduce people to others worth knowing and to new ideas and innovations.
• Tell compelling stories of community.

Our focus online:

• Break news.
• Encourage, engage and collaborate with communities of interest (both geographic and subject).
• Serve as the center and catalyst for community conversations (both geographic and subject)
• Aggregate information in broad swaths across topics and provide information on topics of greatest interest/utility
• Tell stories with tools unavailable for print.

These distinctions should guide us as we reorganize. We must be a dynamic and flexible local news organization that consistently connects with its audience and addresses its interests with distinct local content.

GENERAL STRUCTURE:

We will achieve what is described above with more efficient and larger work groups. There will be two large groups with reporters and one for editing and production. We need larger work groups to be able to focus our work more quickly and to bring a critical mass of talent to the big stories as they arise. We also need a larger production work group so more work can be shared among a smaller staff. We are separating content generation from production in order to maximize the time and talent of editors on their responsibilities.

Here is an overview, knowing that there is much work still to be done and that this will raise as many or more questions than it will answer. We will answer those questions as quickly as we move forward to the next stages of planning. (More on that below.)

LOCAL EXPERTISE AND ENTERPRISE REPORTING: This group of reporters will be devoted to coverage of local and regional news and features. We will not abandon our foundation of beat reporting, but beats will be redefined along areas of expertise of most interest to our readers. Some beats will be eliminated because with fewer people we cannot cover everything that we have in the past. All will have a metro-wide orientation. Our existing fourth- and fifth-floor teams, with some small exceptions, will cease to exist. Breaking news will reside within this group as well. So will watchdog and investigative reporting. So will narrative storytelling, because we must continue to maintain the craft of feature writing. We are not doing away with coverage of traditional strengths such as politics and government, green/sustainability, business/economy and culture/arts. But this reorganization will push us to redefine beats around the content we need and readers want and be less bound to traditional beats defined primarily by buildings or institutions. This group also needs to think more about opportunities to present information online and will work to differentiate stories that are posted early in the day from what appears in print.

The group will be headed up by Susan [Gage, managing editor for breaking news and online], who will have a team of editors working with her. They will have shared responsibility for working with reporters to produce content for the front page, Metro, How We Live, Business and the Web site on a daily basis. This will require greater coordination, planning and sharing of resources because we expect the content to be distinct and appropriate for newspaper sections or the Web, greater in quantity that we currently produce and of the highest quality. The group will include about 60-70 reporters, editors and support staff.

COMMUNITY: This group will be based both downtown and in bureaus and will be responsible for daily zoned content and hyperlocal community-based Web sites. Staff reporters downtown (for Portland) and in bureaus will be more trend-spotters, focused on producing enterprising zoned centerpieces and less beat-centric. We recognize that a foundation of enterprise comes from sourcing and expertise borne of beat reporting, so finding the right balance with limited resources will be challenging. Going forward, we'll use more interns and freelancers for some street-level kinds of stories. In addition, we are beginning to create hyperlocal sites for all the suburban communities and the city. These sites are critically important and represent much of our future online. Hyperlocal is to newspapers today what zoning was the past 20 years or so. It is a way we remain vital to communities, defined by geography and topic. Community more and more also means communities of interest, not just geography, and hyperlocal topic pages will be a key part of our Web work. To be successful, we must ensure all these Web pages are anchored by Oregonian journalism, as well as full of other news, information and lists. They must serve as a center for community conversations.

The community group, headed by JoLene [Krawczak, managing editor for features], will include staffers assigned to build and manage those pages. It will likely be about 40 reporters and editors, including interns.

EDITING AND PRODUCING: This group represents the nerve center of the newsroom’s editing and play decisions. It is essential that we transition from the traditional mentality and rigid time clock of newspaper production. That is, we need to organize to deal with news as it happens and to get it to the right place, whether online, print, or both. We’ll have more of a round-the-clock focus, rather than strictly aiming our energies toward the evening print deadline. Also, with a smaller staff, we need to separate section editing from story generation so editors working with reporters can focus on that task. We also need to streamline editing operations and simplify newspaper production since we will be losing many copy editors and designers. We must move toward “one-touch editing.” Therefore, all production for all sections will be done in one place.

This new operation will be headed by Therese [Bottomly, managing editor for readership and standards]. She will have a team of section editors working for her who are responsible for prioritizing and producing what goes in the paper and online each day, in consultation with the content editors. In addition, management of the OregonLive home page and other Internet operations will be part of this operation. So will copyediting, design and wire editing. Photo/multimedia/graphics will be part of this group as well. So will Listings. It will likely be about 60-70 people, but that’s the squishiest number of the three as this operation will be the most complex to build out.

For now, Sports, Homes & Gardens, FOODday, Travel and Editorial will remain separate content-generating operations, but production of all those sections and pages would move into the production group. Homes & Gardens, FOODday and Travel will continue to report to JoLene.

####

In this new structure, everyone's job will change either somewhat or a lot:

For most reporters, beats will still be the primary focus, creating the enterprising journalism we value. With a smaller staff there will be increased expectations of productivity, flexibility and greater responsibility for Web work. Reporters will need to jump in on issues that require our attention more often than has been the case and work different hours as news and Web needs dictate. More reporters on their beats will engage in chats online, will "crowdsource" on topics of coverage and engage online with people who have something to offer within their area of expertise. It is worth saying again: Substance and agenda-setting public-service journalism always will be top priorities for us. We need to make sure our work more directly connects with reader needs and interests, while fulfilling expectations that we are acting as their eyes and ears.

For assigning editors, the reorganization means greater focus on the work of reporters (as compared to sections), dedication to enterprise and flexibility. Editors will be charged with helping reporters be successful qualitatively as well as quantitatively and will make sure every reporter has cover-worthy stories under construction at any time. There will be significantly fewer assigning editors. (Some will be reassigned to new duties as we reduce staff.) Editors will (as with the reporters) be both keepers of topic areas and generalists responding to the needs of the day.

For copy editors and designers, reorganization means a less deadline-centric world and working across platforms at all times. It means managing the home page and the site as well as editing copy, writing headlines and designing pages. More work will be shared and workflows streamlined to eliminate redundancies and to free up time for the work that needs the closest attention. Rather than a universal desk, think of it as a creative production operation managing the Web and the paper.

For photojournalists, it means everyone -- editors and photographers -- must be fully trained and able to work in still or video and can flow from one to the other as needs dictate. No one can be just about still photography or just video.

This is just a start. We’ll need and seek your feedback as we begin to build the specific structure in support of these broad ideas.

The key next steps:

• Set specific work priorities for each of three large groups.
• Make sure we are in agreement on the primary content areas within the expertise and enterprise group and begin to define beats.
• Begin to figure out how the production operation will work, what the key leadership jobs will be and how we will integrate home-page management into the function of copy editors and designers.

Please bring questions to any of the senior editors.

New DoD Website Fosters Secret Science

The Pentagon’s Defense Technical Information Center (DTIC) last month announced the creation of a new password-protected portal where authorized users may gain access to restricted scientific and engineering publications.

“DTIC Online Access Controlled… provides a gateway to Department of Defense unclassified, controlled science and technology (S&T) and research and engineering (R&E) information,” according to a September 21, 2009 news release (pdf). “As defense S&T information advances, so does the unique community to which it belongs,” said DTIC Administrator R. Paul Ryan.

The cultivation of controlled but unclassified scientific research by DTIC seems to represent a departure [see update below] from a longstanding U.S. government position that scientific research should either be classified, if necessary, or else unrestricted. (There have always been exceptions for export controlled information and for proprietary information.)

“It is the policy of this Administration that, to the maximum extent possible, the products of fundamental research remain unrestricted,” wrote President Reagan in the 1985 National Security Decision Directive 189. “It is also the policy of this Administration that, where the national security requires control, the mechanism for control of information… is classification.”

“The key to maintaining U.S. technological preeminence is to encourage open and collaborative basic research,” wrote then-National Security Advisor Condoleezza Rice in 2001. “The linkage between the free exchange of ideas and scientific innovation, prosperity, and U.S. national security is undeniable.”

In response to a request 5 days ago, DTIC was not able to provide a comment on the matter.

Update and Clarification: “Departure” may be the wrong word for this new development. DTIC has long maintained a collection of limited distribution records, both classified and unclassified, that are not publicly available. Nevertheless, the new DTIC Online Access Controlled portal appears to expand and reinforce the barriers blocking access to certain unclassified DTIC holdings.

New Way to Make Stem Cells?

THURSDAY, Oct. 8 (HealthDay News) -- Scientists say they can use chemicals to turn adult cells into patient-specific stem cells instead of relying on potentially cancer-causing genes.

U.S. researchers used chemicals to replace two of the four genes needed to turn adult cells into induced pluripotent stem cells (iPSCs), which are similar to embryonic stem cells.

"Stem cells have the greatest potential to dramatically change and improve the way we treat diseases," study lead author Justin K. Ichida, of the Harvard Stem Cell Institute, said in a news release. "We're very excited about our findings because it means that in the near future we should be able to make limitless supplies of stem cells and possibly replacement cells for patients with diseases."

Previous research identified four genes that can transform adult stem cells into iPS cells. The genes are delivered via a retrovirus that integrates into a cell's DNA. However, the DNA from the virus remains in the cells and, over time, may activate cancer-causing genes.

In this study, the researchers substituted small chemical molecules for two of the genes.

"This discovery is exciting because it demonstrates the feasibility of using chemicals to make safer patient-specific stem cells for transplantation medicine," Ichida said.

"One of the most important things we learned from this study is that with respect to molecular pathways, there may be several ways to convert one type of cell into another. By using a non-biased chemical screening approach, we uncovered a previously unknown way to make stem cells. The big challenge over the next decade will be to figure out how to make the right cells for disease treatment. This approach will be important for achieving that goal."

The study, funded by the New York Stem Cell Foundation, is published online Oct. 8 and in the Nov. 6 print issue of the journal Cell Stem Cell.

Same as it ever was: Post (preseason) opener notes

No two seasons are alike, so in defending a title finding the balance between sticking with what works and keeping things fresh can be tricky. Before Wednesday night's successful opening to the preseason, Lamar Odom made it clear talking to the media that having found a championship formula, the Lakers have every intention of reproducing it, right down to keeping everyone's spot on the bus exactly the same. (Ron Artest slides into TA's spot, no surprise.) It's not a question of superstition, but habit and routine. On a personal level, he's long since resolved any issues about coming off the bench. "I wouldn't change it," he said. "We won a championship. I'll keep it the same."

Identical routines, maybe, but the addition of Artest can help create new things to focus on in practice, new adjustments in games, and so on. Could help keep the collective mind sharp in what is always a very long march to the postseason.

Other notes:

*DJ Mbenga is getting close to a return. He practiced Tuesday, and was sore yesterday but otherwise undamaged. They'll be careful, though, heading forward, since groin injuries are on their best day pretty tricky. "That kind of thing, you can't (mess) with," he said. Mbenga doesn't want to step on the court until he feels he can go all out. "How I like to play, I like to be everywhere."

*Last year, we sat next to a scout with a W.C. team who pointed out many of the ways in which the Lakers are an incredibly well coached team. Last night was another indication. Yes, it was preseason, yes, it was against the Warriors, but there's a purpose and efficiency to everything they do on the floor, which is only magnified when compared to the chaos that is the Warriors.

*The dig on Ron Artest isn't that he can't pass, but all to often forgets and allows the ball to stick in his hands. There was none of that on Wednesday. His passes were quick and decisive, and moving the rock seemed to be his first instinct in nearly every situation. I predicted that Artest would be so conscious of doing the right thing in his first year that holding the ball wouldn't be a real problem. After one preseason game, I'm looking good.

*The Warriors are a terrible interior team- worst defensive rebounding crew by percentage in the NBA last season- and have nobody who can guard Andrew Bynum, but I was impressed by his work. He looked like a guy who wants to play fourth quarters, which is good whether he gets his wish or not.

*The best shot of the night from Sasha Vujacic was probably his first. He catches the ball out of rhythm beyond the three point line. Instead of hoisting from there, he took a dribble in, got set, and canned a two.

Retail roundup: Upbeat news from Macy's, Kohl's, The Gap

Many of the nation's largest retailers with stores in the Triangle -- including Target, Macy's, Kohl's and The Gap -- reported September sales figures Thursday.

Many retailers beat analysts' expectations, and several were well into positive sales territory.

Industrywide, September sales were projected to slip by 0.8 percent, according to Retail Metrics, a Massachusetts firm that tracks store sales. Department stores were forecast to post the second-weakest segment results, down 5.3 percent (compared with a decline of 9.5 percent in September 2008), according to Retail Metrics’ monthly report. Only teen apparel chains were expected to be worse, with an expected sales decrease of 5.9 percent.

Here's a roundup of September retailer sales results as reported by the DBJ's sister papers in the companies' headquarters cities. (Check back through the dau for more retail results as they come in.)

---

• Target Corp. said its September comparable-store sales declined 1.7 percent, but the results were better than the retailer expected and they were strong enough for the company to predict it will beat analysts’ average estimate of 43 cents per share in the third quarter.

The Minneapolis-based retailer had “stronger than expected” margins in its retail and credit card segments, in line with its expectations.

“While our outlook for the third quarter has improved, we remain cautious in our expectations for fourth quarter results in both of our business segments,” Target CEO, Chairman and President Gregg Steinhafel said in a statement.

Total net retail sales for the five weeks ended Oct. 3 were $5.39 billion, up 1.3 percent from $5.32 billion in September 2008. The value of Target’s average transaction declined last month, but there was an increase in the number of total transactions.

Target (NYSE: TGT) said sales performance in commodity categories continued to be strong, led by health care, household/personal/baby, and beauty product categories, which had comparable-store sales increases from the low single-digit percentages to the low double-digits.

Comporable-store sales in food were essentially flat as retail price declines offset increases in unit sales.

September same-store sales in hard-line goods were “slightly-behind” the company’s own estimates, with stronger than average performance in electronics and weaker than average performance in entertainment.

Sales in the clothing and apparel category were slightly better than the company’s overall results, led by intimate-hosiery, jewelry and shoes. However, sales were weaker than average in newborn-infant-toddler and women’s apparel.

Comparable-store sales in the company’s home segment were down in the high single-digit percentage rate.

Sales were strongest in northern California and a broad set of Northeast and mid-Atlantic states, and weakest in Texas, Southern California and Florida.

For the month of October, the company said it expects comparable store sales will decline in the low single-digit range.

• Kohl's Corp. said it is raising its estimate for third-quarter earnings after same-store sales for September increased 5.5 percent over a year ago and total sales for the period increased 9.6 percent.

Total sales for the five-week period ending Oct. 3 were $1.46 billion, compared with $1.34 billion a year earlier, the Menomonee Falls, Wis.-based retailer (NYSE: KSS) said Thursday. Kohl’s does not release dollar figures for same-store sales.

The sales figures far exceeded an estimate of a 0.1 percent same-store sales increase, according to analysts surveyed by Thomson Reuters.

Total year-to-date sales were up 2.8 percent, to $10.22 billion, and comparable-store year-to-date sales decreased 1.7 percent. For the third quarter-to-date, total sales were $2.78 billion, up 7.2 percent, and comparable-store sales were up 2.9 percent.

STOCKS NEWS US-Liz Claiborne in exclusive deal with J.C. Penney

Liz Claiborne Inc said on Thursday it has reached agreement to sell

its namesake clothing brand and Claiborne-branded merchandise exclusively at

J.C. Penney Co Inc stores.

The company said the move was part of a strategy it sees lifting its

wholesale brands to profitability in 2010.

For details, see

Shares of Liz surged 15 percent to $6 while J.C. Penney was up 0.7 percent

to $35.14.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0835 ET 08Oct2009-Jobless claims fell more than expected

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The number of U.S. workers filing new claims for jobless insurance fell

more-than-expected last week, dropping to a nine-month low, according to a

government report on Thursday.

Initial claims for state unemployment benefits dropped 33,000 to a

seasonally adjusted 521,000 in the week ended Oct.3, the lowest level since

early January, the Labor Department said. Analysts polled by Reuters had

forecast new claims slipping to 540,000.

For details, see

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0823 ET 08Oct2009-Most retailers topping estimates in Sept sales

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With 15 companies having reported, a majority of retailers have posted

September same-store sales data ahead of expectations, according to Thomson

Reuters data.

Nine retailers, or 69 percent of companies that have reported, have topped

expectations with a median positive surprise of 1.7 percent, a Thomson Reuters

report read. Four companies have come in under consensus.

The biggest upside surprises came from Children's Place, Limited and Wet Seal. The biggest misses were Stein Mart,

Stage Stores and The Buckle.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0813 ET 08Oct2009-Goldman downgrades L-3 Communications to 'sell'

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Goldman Sachs on Thursday downgraded L-3 Communications Holdings Inc to 'sell' and added the company to its conviction sell list in place of

Northrop Grumman Corp.

The firm wrote that there were 'substantial top-line headwinds' that would

prevent the company from growing revenue in 2010, including the company's

exposure to Iraq and to government services.

For details, see

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0810 ET 08Oct2009-M. Stanley: Q3 will be hard for mid-cap banks

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Morgan Stanley on Thursday said the third quarter would be hard for mid-cap

banks as higher credit costs weigh on earnings, though it added that

expectations for the group appeared realistic.

'Results are likely to be quite challenging for the group, with higher

sequential provision expenses and net charge-offs at most banks being the

biggest headwind,' the firm wrote to clients.

For details, see

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0807 ET 08Oct2009-Futures rise on Alcoa earnings, commodities

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U.S. stock futures rallied on Thursday, a day after Alcoa Inc kicked

off the latest earnings season with a surprise third-quarter profit.

Advancing commodity prices also lifted energy stocks.

For details, see

Dow Jones industrial average futures rose 75 points while S&P 500

futures gained 8.3 points and Nasdaq 100 futures were up 12.25

points.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0755 ET 08Oct2009-Deutsche Bank starts Goldman, M. Stanley at 'buy'

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Deutsche Bank started both Goldman Sachs Group Inc and Morgan

Stanley as 'buy' on Thursday, saying the two banks would stay well

capitalized, even under likely increased regulatory capital requirements.

The firm said Goldman would generate superior earnings growth in the near

term, while Morgan Stanley would see improving book value growth and return on

equity over the long term.

For details, see

Morgan Stanley shares edged 0.3 percent higher to $31.24 in premarket

trading, while Goldman shares closed at $190.48.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

Keywords: MARKETS STOCKSNEWS

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PIGS USE MIRRORS

Enlarge

Mirror WisdomDomesticated pigs, such as this one posing at a fair, have the capacity to figure out how to glean information from a mirror when poking around their environment.The Pug Father/Flickr

Forget lipstick on a pig. The first report of pigs learning to use a mirror is about finding the food.

Give pigs a chance to experiment with a mirror first and most of them can find dinner based on only a food bowl’s reflection, says Donald Broom of the University of Cambridge in England, who studies animal cognition and welfare. Pigs that don’t have a chance to learn about mirrors first tend to poke around behind the mirror, Broom and his colleagues report in an upcoming issue of Animal Behaviour.

Broom says the findings suggest that pigs have what he considers a relatively higher degree of awareness. In what he terms “assessment awareness,” an animal marshals observations and memories to evaluate a situation in relation to itself over a short span of time and demonstrates this awareness with appropriate action.

When he first let pigs explore a mirror, the animals approached in stages, often ending up with nose pressed against glass. One pig actually broke the mirror after charging as if it were a rival. Pigs looked behind the mirror, and often watched it as they moved in front of it.

For the test, Broom and his colleagues gave four pairs of pigs five hours to check out a mirror in a pen. Then each pig was penned with a mirror that was angled so it reflected a bowl of apple slices or M&M’s on the other side of a partition. When researchers let the test pigs free to snuffle around the area, seven of the animals went behind the partition and found the food. Most pigs in a control group that had never seen a mirror before poked around behind the mirror, as if they were searching for food there.

“It is nice to have this data point, but it has already been demonstrated in other animals,” says Marc Hauser, who directs the Cognitive Evolution Lab at Harvard University. “The paradox is why animals that can use a mirror to find hidden objects can’t use it to recognize themselves.”

For a mirror test of self-recognition, researchers often put some kind of dye or mark on an animal and then look to see if the animal pokes at the marked spot on its body after catching a glimpse of the spot in the mirror. Researchers have reported clear positive results from very few nonhuman animals — magpies, bottlenosed dolphins, elephants and apes.

Broom says he has tried marking pigs before letting them look at a mirror, but that the result didn’t tell him much. Pigs didn’t pay attention to the marks, but “this is not surprising considering how often they get marks on themselves,” he says.

The recognition that pigs have at least some degree of awareness may earn them better treatment, Broom says. Now “conditions for meat-production pigs often do not meet their needs; densities are very high,” he says. “If an animal is clever, it is less likely to be treated as if it is an object or a machine to produce food.”

AP Top News

WASHINGTON — The number of new claims for jobless benefits falls to the lowest level since early January, as employers cut fewer workers. The Labor Department says first-time claims for unemployment insurance dropped last week to a seasonally adjusted 521,000, from the previous week's upwardly revised total of 554,000.

Financial News: Bid Premium Fall Positive Sign For Europe M&A

The average premiums being offered to takeover targets in Europe have fallen for the third consecutive quarter, according to new figures released Thursday, in a further sign of stabilisation returning to the region???s mergers and acquisitions market.

One-week bid premiums - or the average amount offered for takeover targets above their share price a week before an offer was made - fell again in the third quarter, according to data provider Dealogic.

Jennifer Lopez's New Song 'Fresh Out the Oven' Found

A fresh material from Jennifer Lopez called "Fresh Out of the Oven" has made its round. Having rapper Pitbull on the hook, the track is produced by The Neptunesand contains up-tempo jams which allow people to dance.

"Definitely something very, very sexy," Pitbull offered his comment to MTV about the duet song back in September. "Produced by Pharrell [Williams], look out for it. It's kind of like eyes wide shut."

When the track came out, rumor suggested it would be included in J-Lo's upcoming studio album tentatively titled "Love?". There was also speculation that she would launch her alter ego, Lola. However, both reports were turned down by her camp.

"This is a hot club record that the label loved and Jennifer thought was fun," Amanda Ghost, president of Epic Records explained to People. "Jennifer and Pitbull got together and the record leaked. Lola is a fun character just for this song." A source close to the singer emphasized, "Lola is just for this song, it's not her ongoing persona. It's something fun. She hasn't become Sasha Fierce [Beyonce Knowles' artistic alter ego]. There won't be anything to do with Lola on her 'Love?' album."

Bad News For Those Born In 1947

Old-timers in Washington remember the Social Security "notch," as a quirk in the program's benefit formula that reduced payments for retirees born from 1917 to 1921. Eventually, a bipartisan Congressional commission concluded that the notch's effects were modest and did not require compensation. But not before members of Congress entered over 100 pieces of legislation to address the notch and senior advocacy groups, often under very dubious pretenses, reaped millions in contributions by claiming they could secure compensation for affected retirees.

A new Social Security notch coming soon should generate interest in Congress as it presents a much stronger case for help. Quirks in Social Security's formula for granting Cost of Living Adjustments (COLAs), interacting with a spike in inflation during 2008, could cause a typical 62-year-old couple to lose almost $25,000 in benefits over their lifetimesSocial Security COLAs are calculated every October by comparing the third-quarter data of the Consumer Price Index for Urban Workers (CPI-W) with the previous year's numbers. An increase in the CPI results in a COLA the following January for retirees and other Social Security beneficiaries. Rising energy prices caused a 5.8% COLA to be ordered in the fall of 2008. However, plummeting prices between the fall of 2008 and the beginning of COLA payments in January 2009 caused the CPI as a whole to drop by around 5%. In effect, the 2009 Social Security COLA compensated retirees for inflation that no longer existed.

To make up for this overpayment, Social Security will pay no COLAs until prices rise back to their previous fall 2008 levels, which, according to the Congressional Budget Office, won't be until 2012. While seniors are upset by the lack of a COLA in the coming year, they actually benefited from the original overpayment. The overly large January 2009 COLA increased Social Security benefits purchasing power by around 5% above 2008 levels. For a typical retiree this is equivalent to an annual benefit increase of almost $700. Given that COLAs are designed merely to keep purchasing power constant, this is a large gain. Moreover, for all but the richest retirees, Medicare Part B premiums are not allowed to increase in a year without a COLA. This will save the typical senior almost $100 next year.

There is, however, one class of Americans who will lose big: people who turned 62 this year. 62 is the first age at which Social Security retirement benefits can be claimed, which means that individuals born in 1947 did not receive the 5.8% "windfall COLA" paid in January of this year. Like current retirees, however, today's 62-year-olds will not receive COLAs for the next two years. Inflation over the next two years will reduce the purchasing power of benefits for today's 62-year-olds by around 5% before COLAs resume in 2012. If today's 62-year-olds had received the "windfall COLA" of 2009, the lack of COLAs over the next two years would simply return their benefits to the proper level. But since today's 62-year-olds did not receive the 2009 COLA, the lack of COLA payments in 2010 and 2011 will have a significant negative impact on their lifetime benefits.

In addition, due to details of the Social Security benefit formula, this financial loss can't be avoided by delaying retirement until after COLAs resume in 2012. For a typical newly retired couple with a monthly benefit of $2,235, this penalty will cost them around $1,340 per year, for every year of their retirement. If they survive to a typical age of 83, these couples will lose almost $25,000 in lifetime benefits. While high-income households may shrug off a 5% cut in their Social Security benefits, for low earners every penny counts.