Barclays in new regulatory probes


























UK bank Barclays has announced that it is the subject of two new regulatory probes, soon after a series of scandals that have dented its reputation.





















US authorities are looking at whether the way that Barclays won business complied with the Foreign Corrupt Practices Act.


The bank disclosed the probes as it reported a pre-tax statutory loss of £47m for the third quarter, down from a £2.4bn profit last year.


Shares in the bank fell 4.7%.


The loss includes charges to cover the payment protection insurance (PPI) mis-selling scandal.


“The spectre of more damage to the bank’s reputation in the form of further regulatory probes is weighing heavily on the shares,” said Richard Hunter, head of equities at Hargreaves Lansdown.


“Barclays’ outlook statement is also cautious, whilst the previously announced extra PPI provision has dented the overall performance. On the upside, the bank has seen a reduction in impairments and costs, has further bolstered its capital position and has reduced its exposure to the weak peripheral European markets.”


Scandals


The US Department of Justice and the Securities and Exchange Commission are looking into how Barclays won its business, while the second probe is by the US Federal Energy Regulatory Commission (Ferc), which has been investigating Barclays power trading in the western US with respect to the period from late 2006 through 2008.


Ferc alleges that Barclays bought and sold electricity in enough volume to move exchange prices up or down to benefit the lender’s positions.


“Barclays intends to vigorously defend this matter,” the bank said.


The SEC conducts its investigations privately and a spokesperson declined to comment when contacted by the BBC.


Barclays’ adjusted profits, not including additional charges, were £1.7bn, up from £1.3bn for the quarter last year.


Continue reading the main story


The bank said it needed to set aside a further £700m for PPI claims, on top of £1bn in 2011 and £300m in the first quarter of this year that it anticipated.


Chief executive Antony Jenkins said the results show “good momentum in our businesses despite the difficulties we faced through this period”.


Mr Jenkins took over at a difficult time for the banking group, which has seen its reputation severely dented. In June, Barclays was fined £290m by UK and US regulators for attempting to manipulate Libor, an interbank lending rate which affects mortgages and loans.


The scandal saw previous boss Bob Diamond and chairman Marcus Agius depart the bank.


And in August, the Serious Fraud Office started an investigation into payments between Barclays’ bank and Qatar Holding in 2008 when the bank was raising money in the Middle East during the banking crisis.


The entire financial services industry has come under scrutiny since the financial crisis in 2008.


The industry’s reputation has been battered further by the mis-selling of PPI, and the mis-selling of specialist insurance – called interest rate swaps – to small businesses.


Barclays has set aside provisions of £450m for interest-rate hedging products, it said.


It had already said it would take a £1.01bn charge related to revaluing the cost of its debt on its balance sheet.


In the third quarter, Barclays said its staff costs fell 9% to almost £2bn, including an increase in deferred charges for bonuses in previous years to £942m.


BBC News – Business



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Russia’s Mail.Ru to launch global expansion with online games

























MOSCOW (Reuters) – Russian email-to-social networking group Mail.Ru is targeting online gamers as it prepares to launch services in foreign markets under the ‘my.com’ name.


“Games is what we can begin to enter new markets with,” Dmitry Grishin, the chief executive officer of Mail.Ru Group, told reporters on Tuesday.





















The company, part-owned by metals tycoon Alisher Usmanov, did not elaborate on its international plans, saying only that it has been testing various products in foreign markets for more than six months.


It has previously focused on the domestic, Russian-language market.


Rival internet group Yandex has already expanded to Turkey and Czech Republic and said recently it would take the fight against Google in other emerging markets to offset the inroads made by the U.S. giant in its home market.


Mail.Ru operates two of the three largest Russian language social networks, Odnoklassniki and Moi Mir, instant messaging networks Mail.Ru Agent and ICQ and email service Mail.ru.


It also has a 1.17 percent stake in U.S. game maker Zynga, a 0.75 percent stake in social networking site Facebook and 4.12 percent of shares in daily deal website Groupon.


(Reporting by Maria Kiselyova; Editing by Hans-Juergen Peters)


Internet News Headlines – Yahoo! News



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Rolling Stone Ronnie Wood engaged to marry

























LONDON (Reuters) – Rolling Stones guitarist Ronnie Wood is engaged to be married to a 34-year-old theatre producer named Sally Humphreys, his spokesperson said on Tuesday.


The twice-married, 65-year-old musician and artist separated from his second wife Jo Wood in 2008 and had a public disagreement with her over the auction of some memorabilia in Los Angeles which went ahead earlier this month.





















News of the impending wedding comes just after the Stones played a warm-up gig in Paris for 350 people and announced four dates in London and New York to celebrate their 50th anniversary.


It also comes ahead of the release next February of Jo Wood‘s memoirs, which promise to reveal her tales of life as the wife of a Rolling Stone.


Wood has recently been focusing on his visual art career and in April opened a New York City art show entitled, “Faces, Time and Places”, featuring portraits of Mick Jagger, Keith Richards, Charlie Watts and other celebrities.


But he is still best known for his music and in April was inducted for a second time into the Rock and Roll Hall of Fame, with other members of his former group The Faces, including Rod Stewart and Kenney Jones.


The Rolling Stones, which Wood joined in 1975 after Mick Taylor left the band, were inducted into the Hall of Fame in 1989.


(Reporting by Paul Casciato; editing by Steve Addison)


Music News Headlines – Yahoo! News



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Should schools close during bad flu outbreaks?

























NEW YORK (Reuters Health) – A new U.S. government study suggests that during a serious flu epidemic, closing schools can keep people – especially kids – out of the ER.


Now, researchers say, the big questions include, When is it best to close schools? And what are the downsides?





















The study, reported in the journal Clinical Infectious Diseases, looked at what happened in two Texas communities during the H1N1 “swine” flu epidemic of 2009. In one community, schools were closed as a precaution; in the other, they weren’t.


It turned out that in the district where schools shut down, there were fewer ER visits for the flu.


What’s more, among kids age 6 and up, there was no increase in flu-related ER trips, while that rate doubled in the community where schools stayed open.


“The effect was most dramatic among school-age children,” said Dr. Martin S. Cetron, of the Centers for Disease Control and Prevention (CDC).


There have been skeptics who’ve doubted that school closures could have much impact during a major flu outbreak, according to Cetron.


“They’ve said, well, people will just congregate in malls or other public places,” explained Cetron, who directs the CDC’s division of global migration and quarantine, and worked on the study.


But schools are different from malls, Cetron pointed out, with kids being in close contact with each other all day long.


He said he thinks this study, along with others, “settles” the question of whether school closures are effective. “Should this be an arrow in our quiver? I think the answer is ‘yes,’” Cetron said.


But lots of other questions remain.


“Under what conditions could (school closures) be warranted?” Cetron said. “What level of severity is needed?”


And if schools are closed, he noted, what are the downsides? Parents will have to stay home from work, or find child care. And kids and teachers will have to make up the lost school time somehow. So the expected benefits of school closings would need to be worth the troubles.


PREDICTION IS DIFFICULT


Every year, between five percent and 20 percent of Americans get the flu, contributing to some 36,000 deaths. The elderly and people with chronic medical conditions, like heart or lung disease, are among those most at risk.


But the 2009 H1N1 flu epidemic was noteworthy in that it hit children and healthy young adults hard.


The current study looked at two adjacent counties in Texas: Tarrant County, which closed its schools for eight days after a few kids were diagnosed with H1N1; and Dallas County, where schools did not shut down after a few cases were detected.


Before Tarrant County’s school closures, the flu accounted for about 3 percent of all ER visits to area hospitals; during the closures, that rate inched up to just over 4 percent. But the increase was bigger in Dallas County during the same time period: from 3 percent, to just over 6 percent.


The impact was most clear among kids ages 6 to 18. In Tarrant County, there was no increase in the proportion of ER visits blamed on the flu. In Dallas County, the figure more than doubled, from about 5 percent to 11 percent.


“It’s important to point out that this was a pre-emptive school closure,” Cetron said. “Usually, most closures we see are reactive.”


Predicting how a flu outbreak might affect a local area is far from easy. It’s not like tracking a hurricane, for instance, Cetron pointed out.


Decisions on school closures are made locally. For school districts to make wise decisions, Cetron said communication with local and state health agencies is key.


SOURCE: http://bit.ly/Tly968 Clinical Infectious Diseases, online October 19, 2012.


Diseases/Conditions News Headlines – Yahoo! News



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Global shares see modest rise as U.S. storm impact assessed

























LONDON (Reuters) – World shares rose modestly in subdued trading on Tuesday as investors waited to see the full impact of a massive storm that wrought destruction across the eastern United States.


The monster storm, code-named Sandy, was responsible for at least 15 deaths, left millions without power, and has closed much of New York’s financial district.





















Wall Street shut for a second day, and bond trading was also halted as the focus switched to whether markets would be able to resume activity on the final day of the month on Wednesday, which is key to pricing investment portfolios.


The FTSEurofirst 300 index of top European shares <.FTEU3> was up 0.75 percent at 1,101.75 points and, after gains earlier in Asia, the MSCI world equity index <.MIWD00000PUS> had risen 0.3 percent to 328.86 points.


U.S. stock index futures, which kept trading in Europe, edged lower, but volumes were very light. <.N>


“We’re a bit lost without Wall Street, frankly,” said Alexandre Tixier, technical analyst at TradingSat, in Paris.


Across European stock markets, attention was on corporate earnings, with results from well known names like Germany’s Deutsche Bank , Swiss banking giant UBS and oil major BP lifting prices. UBS shares leapt over four percent as it confirmed a plan to cut 10,000 jobs.


Britain’s FTSE 100 index <.FTSE> was up 0.75 percent, Germany’s DAX index <.GDAXI> up 0.9 percent and Switzerland’s SMI index <.SSMI> up 0.5 percent.


MODEST BOJ MOVE


In the currency markets, which remained open, the dollar lost ground against a resurgent yen after the Bank of Japan eased policy less aggressively than had been hoped for at its regular policy setting meeting.


The BOJ increased its monetary stimulus for a second month running, this time by 11 trillion yen ($ 138.5 billion), disappointing many who had positioned for a more aggressive increase.


“It was a very skeptical response to the BOJ policy meeting, made worse by the fact they have revised lower the growth and inflation outlook,” said Jane Foley, senior currency strategist at Rabobank. “That has seen the yen unwind a lot of the softer tone we saw going into this meeting.”


The dollar hit a one-week low of 79.25 yen and was down 0.3 percent against a basket of major currencies at 79.67 points <.DXY>.


The weaker dollar helped the European common currency climb 0.4 percent to $ 1.2958, while news the Spanish economy had shrunk slightly less than expected in the third quarter and Italy’s borrowing costs had fallen also supported the euro.


But gains for the single currency are expected to be limited by continuing questions over whether Greece can agree a deal with its creditors, and when Spain might request financial aid.


Spain’s economy contracted for a fifth straight quarter between July and September, and prices rose, according to new data, keeping pressure on the government to take some action as the prospect of further civil unrest grows.


“Spain’s economy is suffering terribly, which will continue to hit government revenues, and a modest decline in bond yields will not solve the problem,” said Kit Juckes, strategist at Societe Generale.


Prime Minister Mariano Rajoy has maintained an ambivalent stance towards applying for a politically embarrassing rescue that would kickstart an ECB bond-buying programme and ease financing costs.


Investors, too, seem willing to wait; 10-year Spanish bond yields were little changed at 5.67 percent.


German government bonds, the benchmark of European fixed-income markets, were also mostly flat.


Italy was even able to sell 7 billion euros of new five- and 10-year government bonds at its lowest cost since May 2011.


Italian 10-year yields dipped 1 basis point lower on the day to 5 percent, having risen about 25 basis points in the last two weeks.


OIL FLOATS


In oil markets, prices were edging higher as traders awaited news of the damage inflicted by Sandy on refineries and pipelines on the U.S. east coast, though weaker demand from the storm-hit region capped gains.


Brent crude for December rose 8 cents to $ 109.36 a barrel, recovering from a fall to $ 108.75 earlier, while U.S. crude for December was up 60 cents at $ 86.14.


U.S. gasoline futures were little changed at $ 2.7530 a gallon, after climbing more than 5 cents on Monday on expectations of tighter supply.


“People are just holding back a little bit to see if there’s any real damage and impact, and at the moment it’s too hard to see,” said Bjarne Schieldrop, an analyst at SEB in Oslo.


(Additional reporting by Nia Williams, Blaise Robinson and Alice Baghdjian; Editing by Will Waterman)


Business News Headlines – Yahoo! News



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Labrinth, Taylor Swift top UK music charts

























LONDON (Reuters) – Singer-producer Labrinth topped the British singles charts this week with the ballad “Beneath Your Beautiful” featuring Emeli Sande.


It was the first No. 1 as a solo artist for the British singer.





















Boy band JLS was new in at No. 6 with “Hottest Girl in the World”, the Official Charts Company said on Sunday.


The other new entry in the singles chart was “Wonder” by British rapper Naughty Boy, also featuring Sande, which took the 10th position.


Taylor Swift swept the album charts with her fourth full-length release “Red”. It is the first time the American country singer has topped the British charts.


British band Lawson, another new entry, scored fourth position with their debut studio album “Chapman Square”.


(Editing by Jon Hemming)


Music News Headlines – Yahoo! News



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Mass. shuts down another compounding pharmacy

























BOSTON (AP) — Massachusetts shut down another compounding pharmacy over sterility concerns after a surprise inspection prompted by the nationwide meningitis outbreak linked to a different company, state officials have said.


Dr. Madeleine Biondolillo of the state Department of Public Health said inspectors went to the Waltham location of Rhode Island-based Infusion Resource last week and found significant issues with the environment in which drugs were being mixed.





















The company was inspected when it first opened in December 2009 and there had been no complaints since. She said the manager of record at the company was a former employee at Ameridose, which is owned by the same people who ran New England Compounding Center, the company linked to the meningitis outbreak.


She would not identify the drugs or say what specific issues investigators found at Infusion Resource, but she said they were concerned about sterility. The company mixes sterile injectable drugs for people who have been released from hospitals.


The company has agreed to contact its 40 patients and their doctors and ask them to return any unused medication. Biondolillo says there is no indication any medication the company compounded is unsafe. She said the company also had an area to administer intravenous drugs, which it was not licensed to do. She says the company voluntarily surrendered its pharmacy license this weekend.


Company Chief Executive Officer Bernard F. Lambrese said in a statement that the company will take immediate action to fix issues identified by Massachusetts investigators, including a crack in a window, the condition of flooring in a clean room and a leak in a refrigerator drain hose.


“No issues were cited relating to the integrity of our products nor to the quality of our compounding practices,” Lambrese said. “I want to reassure our patients and the general public of the safety, purity and efficacy of our solutions produced at our Waltham pharmacy since we were first licensed in 2009. Patient safety is something we take very seriously.”


Lambrese said in the meantime patient needs are being served out of the company’s pharmacy in its main headquarters in East Providence, R.I.


The surprise inspections started in the wake of the nationwide outbreak of fungal meningitis, an inflammation of the lining of the brain and spinal cord, that has sickened more than 300 people, including 23 who have died, in 17 states. The outbreak has been linked to a steroid made by the NECC and taken mainly for back pain. Compounding pharmacies like NECC custom mix solutions in doses or forms generally not commercially available.


Dr. Lauren Smith, interim commissioner of the state Department of Public Health, said Sunday that the department is adding five inspectors to help review all compounding pharmacies in the state by the end of the year. Previously pharmacies were inspected only when they opened or if they moved or were the subject of complaints.


Smith also said the state pharmacy board, which oversees compounding pharmacies, has asked member Sophia Pasedis to step down. Pasedis, a pharmacy manager for Ameridose, has been on the board since 2004. The state previously said she had recused herself from all matters related to Ameridose and the NECC, but Smith said minutes from pharmacy board meetings raise questions about whether that is true. She said Pasedis has so far declined to leave the board. Her term ends next month.


Tom Kiley, an attorney for Pasedis, said a resignation would be mostly symbolic because she doesn’t have much time left in her term and the board will mostly be dealing with issues related to NECC, which she would not participate in.


“As a practical matter it doesn’t make sense,” Kiley said. “What she’s going to do is whatever she can to contribute to the board and assist the board.”


He said she always recused herself on issues related to NECC and Ameridose. He said meeting minutes may be vague because she may have been present at some point in a given meeting but not necessarily when NECC was discussed.


Smith said the Department of Public Health is taking other steps including proposing regulations to require frequent reports from compounding pharmacies and forming a commission to look at best practices in other states.


Medications/Drugs News Headlines – Yahoo! News



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More than ever, Barca more than club for Catalans

























BARCELONA, Spain (AP) — Nearly 20 minutes into the latest clash between Spain’s most popular football teams, Barcelona‘s 98,000-seat Camp Nou stadium erupted into a deafening roar. Tens of thousands of Catalans in the city at the heart of their separatist movement chanted in unison: “Independence!”


More than ever, FC Barcelona, known affectionately as Barca, is living up to its motto of being “more than a club” for this wealthy northeastern region where Spain’s economic crisis is fueling separatist sentiment.





















Lifelong Barca club member Enric Pujol was at Camp Nou for this month’s game against Real Madrid, the team of Spain’s capital. Wearing his burgundy-and-blue Barca jersey, Pujol also held one of the hundreds of pro-independence “estelada” flags, featuring a white star in a blue triangle, which bristled throughout the stands.


“It was a beautiful emotion to see Camp Nou like that,” said Pujol. “Barca is more than a club because of the values it transmits. It is linked to Catalan culture. In this sense it is a club and a social institution that acts like our flag.”


Barca has been seen as a bastion of Catalan identity dating back to the three decades of dictatorship when Catalans could not openly speak, teach or publish in their native Catalan language. Barcelona writer Manuel Vazquez Montalban famously called the football team “Catalonia‘s unarmed symbolic army.”


Barca-Real Madrid matches have a nickname: “el clasico” — the classic — and they are one of the world’s most-watched sporting events, seen by 400 million people in 30 countries. But local passions run high. In Spain, where football has deep political and cultural connotations, many see the clashes of Spain’s most successful teams as a proxy battle between wealthy Catalonia and the central government in Madrid. If Barca is a symbol of Catalan nationalism, Real Madrid is an emblem of a unified Spain.


“Look, the truth is that ever since the Civil War there has always been tension in Spain,” said Pujol. “Having traveled in Spain, they always look at us as Catalans.”


Ahead of kickoff before any “clasico,” Camp Nou traditionally greets Real Madrid players with a huge mosaic of Barcelona’s burgundy-and-blue made up of colored cards. This year, for the first time, they held up cards forming the red-and-yellow striped Catalan “senyera” flag — an explicit nationalist message. (Barca says it can neither confirm nor deny reports that its away uniform next season will be modeled on the senyera.)


Then came the crowd’s collective shout for independence at 1714 hours — in reference to the year 1714 when Barcelona fell to the troops of Philip V in the War of Spanish Succession. It was organized by a pro-independence group through social media.


Barca fan David Fort sees his team as a vehicle to show the world that Catalonia has its own language and culture, which is distinct from what he called the “bulls and flamenco” associated with Spain.


“We have this love for Barca because we have the chance to be represented around the world,” said Fort, a 38-year-old architect from the southern Catalan town of Tarragona. “When we travel and they ask me if I am Spanish, I say not exactly, but when I mention Barca they say ‘Ah! The Catalan team’, and of course since they are champions you feel proud.”


Barca, like every institution in Spain, was marked by the Spanish Civil War of the late 1930s and resulting right-wing dictatorship that ended after Franco’s death in 1975.


Franco’s soldiers killed Barca’s club president in 1936, and the club was forced to change its name from a Catalan to a Spanish version. And while Real Madrid was identified with the regime, Barca, for many, came to represent Catalan anti-fascist resistance.


“Under Franco, people could not shout ‘Long Live Catalonia!,’ but they could shout ‘Long Live Barca!’ (¡Visca Barca!)” in Catalan, said Ernest Folch, a newspaper columnist who writes about Barca for El Periodico. The chant became a kind of code for expressing Catalan pride.


“Barca is an anomaly. There is no other club with its particular history,” said Folch. “It survived the Franco dictatorship, and has always been a focal point for protest and ferment where sport has mixed with politics.”


And politics is a very hot topic these days in Catalonia.


Voters will go to the polls on Nov. 25 in regional elections sure to be judged as a litmus test of the strength of the pro-independence movement that brought 1.5 million people to the streets of Barcelona on Sept. 11 in the largest rally since the 1970s.


Catalonia is heavily in debt and has in fact asked Spain for a euros 5.9 billion ($ 75 billion) bailout. Even so, regional lawmakers voted on Sept. 27 to hold a referendum on self-determination at a date still to be determined. And although it is still unclear that a “Yes” vote would win, Spain’s central government has called such a referendum unconstitutional and will surely try to stop it from taking place.


That all puts Catalonia, and therefore Barca, in the midst of Spain’s struggles to deal with consequences of back-to-back recessions, 25 percent unemployment, and high public debt that has drawn it into the euro crisis along with already bailed-out Greece, Ireland and Portugal.


Barca’s appeal, of course, transcends its regional identity. The team is beloved throughout the world, and a poll last year found that it had displaced Real Madrid as Spain’s most popular team. Barca has 546 fan clubs in Catalonia, and 841 in the rest of Spain. Some of these fans— even in Catalonia — disagree with what they perceive as the political turn the club has taken in recent years.


“It’s surreal to talk to talk about these ideas related to independence,” said fan Jamie Easton, 27, a Spaniard born in Barcelona to a British father and a mother of Catalan descent. “Barca is a Catalan and Spanish club because Barcelona is part of Spain, and fans can feel however they want.”


The upswing in separatist sentiment in Catalonia has forced both the club and its players— many of whom form the backbone of Spain’s world champion national side — to try a difficult balancing act between supporting their most fervent pro-independence fans without alienating the millions of others who are not.


“We are Barca. We represent Catalonia and we will support whatever Catalans want,” said Barca and Spain midfielder Xavi Hernandez. But he added: “We try to isolate ourselves from everything outside the game. We know the political issue is there, and the people have the right to express themselves however they wish, but we are here to play football and make sure people have fun.”


The glaring exception to the moderate tone is former coach Pep Guardiola, a hugely popular figure in Catalonia, who appeared in a video during the Sept. 11 march saying: “Here you have my vote for independence.”


Two weeks after the politically charged “clasico,” Barca president Sandro Rosell made his first official visit to southern Spain to cool tensions at a meeting of Barca fan clubs.


“I don’t know what information you are receiving here, but I preferred to come here and say on behalf of the club that Barca will never get mixed up in political issues,” Rosell told the 1,000 Spanish fans, promising that Barca would never display a mosaic of the separatist “estelada” flag at Camp Nou.


“This doesn’t mean that this isn’t a Catalan club and that of course we will defend our roots and origins, but one thing shouldn’t be mixed with the other. One thing is politics and the other is identity. Barca unites us all.”


___


AP Writer Jorge Sainz contributed to this report from Madrid.


Europe News Headlines – Yahoo! News



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Future of Nokia hangs on Windows Phone 8 rollout

























HELSINKI (AP) — For Nokia, it comes down to this: Is Microsoft‘s new phone software going to get it back in the smartphone race, or is it going to be too late?


After being the top seller of cellphones in the world for 14 years, Nokia failed to meet the challenge when Apple in 2007 introduced the dazzling iPhone that caught the imagination of design-conscious customers and rattled mobile markets.





















The Finnish company hit a downward spiral that has led to shrinking sales and market share, plant closures, thousands of layoffs and downgrades by credit agencies to junk status.


On Friday, research firm IDC said that in the July-to-September period, Nokia slid for the first time off the list of the top five smartphone makers in the world. It’s still the second-largest maker of phones overall, but sales of non-smartphones are shrinking across the industry, and there’s little profit there.


The ailing company’s CEO, Stephen Elop, sees Microsoft’s new Windows Phone 8 software as a chance to reverse that trend, describing it as a catalyst for the new models.


On Monday, Microsoft Corp. is hosting a big launch event for the software at an arena in San Francisco. The first phones from Nokia, Samsung and HTC are expected to hit store shelves next month.


The launch of Windows Phone 8 follows on the heels of Windows 8 for PCs and tablets, which Microsoft released Friday. That operating system has borrowed its look from Windows Phone, meaning Microsoft now has a unified look across PCs and phones — at least if people take to Windows 8. The company has also made it easy for developers to create software that runs on both platforms with minor modifications.


Analysts are calling this a make-or-break moment for Nokia.


“Nokia is placing a huge bet on Microsoft and if the gamble doesn’t pay off, the losses can be high,” said Neil Mawston from Strategy Analytics, near London. “It’s putting all its eggs in one basket and that’s quite a high-risk strategy.”


In February last year, Nokia announced it was teaming up with Microsoft to replace its old Symbian and next-generation MeeGo software platforms with Windows. This move was made in the hope that it would rejuvenate the company and claw back lost ground.


Eight months later, they produced the first Nokia Windows Phone. Consumers didn’t warm to it, and it soon became clear that these phones, based on Windows Phone 7, were going to become obsolete. They can’t be upgraded to Windows Phone 8. Lumia sales slumped to 2.9 million units in the third quarter after reaching 4 million in the previous three months.


“Retailers withdrew marketing and promotion because no one wants to sell customers a device that ages in a few months,” says Michael Schroeder, analyst at FIM Bank Ltd. in Helsinki.


“Had there been a seamless transfer to Windows 8 from the old (Lumia) devices, sales figures would have been much higher last quarter.”


Mawston gives Nokia until April to prove it’s still in the race.


“If Nokia does not have more than 5 percent of the global smartphone market by the end of the first quarter 2013, alarm bells will be ringing,” Mawston said.


Analysts estimate Nokia’s current global smartphone market share to be some 4 percent — down from 14 percent a year ago. Meanwhile, uncertainty clouds its new venture with Microsoft.


“We’re a bit in the dark here,” Schroeder said. “Right now we can’t really say anything about Nokia’s future. Everything depends on how the new devices are received in the market.”


Nokia says its Lumia 920 and 820 phones are just the beginning of a new range of Windows Phone 8 devices, but early evaluations suggest they lack the “wow” effect necessary to make a dent in the smartphone market.


Also, Windows Phone 8 lags behind in the number of third-party applications available. There are some 100,000 available. Google’s and Apple’s stores have six or seven times as many.


“It’s a perception thing really,” Mawston of Strategy Analytics said. “Like in supermarket wars, if you have a store with lots of shelves with lots of apps, then consumers will choose you over a smaller store that has a smaller offering — even if you can’t use all those apps.”


Analysts expect 700 million smartphones to be sold worldwide this year. While network operators and retailers may welcome a third software system to challenge the dominance of Apple’s iOS and Google’s Android, it is the consumer who will ultimately decide Nokia’s and Windows Phone 8′s fate.


Beside the smartphone challenge, Nokia is feeling the pinch in the lower end with manufacturers in China and in Asia producing cut-rate non-smartphones — Nokia’s former domain. Earlier this year, Samsung overtook it as the world’s No. 1 mobile phone vendor, ending Nokia’s reign that peaked in 2008 with a 40 percent market share.


“Dumb” phones continue to be the backbone of Nokia operations, including in India where it’s a top seller. With strong and extensive distribution networks and a brand well-known in emerging markets, all might not be lost for the company that grew from making paper and rubber boots to being the biggest manufacturer of cellphones.


Mawston says that in theory, Nokia and Microsoft have a good chance of success as they offer an across-the-board system that stretches across home computers, mobiles, laptops, tablets as well as in the office, backed by Nokia’s strong distribution and hardware and Microsoft’s multi-platform software.


“If they can exploit that underlying market platform … and tie it all together in a good hardware portfolio, then potentially Microsoft and Nokia could be a very, very strong partnership — a bit like bringing together Batman and Robin,” Mawston said. “But, in practice, whether they can execute on that reality still is a great unknown and remains to be seen.”


Wireless News Headlines – Yahoo! News



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Analysis: Employees to face healthcare sticker shock

























NEW YORK (Reuters) – Visit to New York City orthopedist: $ 223. One X-ray: $ 50. One follow-up magnetic resonance imaging test: $ 766. Total bill for checking out that aching shoulder: $ 1,039 – all to be paid by the patient, rather than the insurer.


Healthcare has gone retail.





















Over the next 18 months, between one quarter and one half of Americans who get insurance coverage through their employers will pay more of their doctor bills themselves as companies roll out healthcare plans with higher deductibles, benefits consultants say. The result: sticker shock.


“They have huge out-of-pocket costs before they get any insurance coverage, it’s a real slap in the face,” said Ron Pollack, the executive director of Families USA, a healthcare advocacy group.


High-deductible plans set a threshold for medical expenses that an individual must pay for, often in the thousands of dollars, before insurance kicks in. Studies show people on these plans are three times more likely to delay or skip care than people on traditional plans, where doctor or emergency room visits are covered by a relatively low co-payment.


These plans have been around for years, pushed by employers, insurers and industry experts who believe that consumers with “skin in the game” will drive demand for better quality care at a lower cost. It is a rationale also backed by President Barack Obama‘s Republican challenger Mitt Romney.


But now corporate America’s adoption of high-deductible plans is accelerating, partly because of Obama’s healthcare reform, which requires insurance plans to provide more expansive coverage such as preventive care.


Several industry surveys forecast a two-percentage-point increase in the number of companies offering only high-deductible plans in 2013 to about 19 percent, and a larger jump of anywhere from 5 to 25 percentage points in 2014.


“2013 is almost a calm period before a period of intense change in 2014,” according to Randall Abbott of Towers Watson & Co, a Boston-based senior consulting leader at the human resources firm.


The shift means consumers will have to spend many more hours researching their treatment options and managing costs on websites like Healthcarebluebook.com, which helped budget the cost of examining the shoulder pain mentioned above.


It could also spur lawsuits against doctors whom patients may blame for not making clear whether a test or procedure would spare them future harm, legal experts say.


SKIN IN THE GAME


About 170 million people were covered by employer-based insurance in 2011, according to the U.S. Census Bureau.


Companies with workers enrolled in high-deductible plans in 2012 include General Electric Co, Wells Fargo & Co, Whole Foods Market Inc, Chrysler Group and American Express Co.


In 2013, Bank of America Corp will offer some employees high-deductible health plans. Smokers who work at the bank will also have to pay higher healthcare premiums than non-smokers.


Wal-Mart Stores Inc, which has 1.1 million people covered by healthcare plans and pays 75 percent of the premium cost for workers, is trimming the number of insurance plans that it offers. It has added “healthcare advisors” who counsel employees on care, and has struck a deal with a group of hospitals that could save money on costly procedures.


Employees are going to pay more at Microsoft Corp as well. The world’s largest software company, which covers 100 percent of insurance premium costs for employees, will next year ask workers to pay for some portion of doctor bills and other services. It has offered high-deductible health plans since 2006 and also funds employees’ health savings accounts.


Deductibles on high-deductible plans start at $ 1,250 for singles and run up to $ 12,500 for families. Once that threshold has been reached, consumers then typically make co-insurance payments, usually a percentage of the service fee.


Insurers such as UnitedHealth Group Inc, Aetna Inc and Cigna Corp are putting prices online to help customers manage their spending.


Cigna, where 2 million of its 12 million members are enrolled in high-deductible plans, is upgrading a software application for mobile devices that can be used in the doctor’s office, hospital or other provider location to help decide where to go for a lab test or cheaper prescription.


“The other thing is, and this is really hard, is to figure out what stuff is necessary and what stuff isn’t,” said Nancy Metcalf, senior program editor at Consumer Reports.


For her, that choice meant that during a check-up she passed on an electrocardiogram, which measures the electric activity or your heart and is not a routinely covered test.


FROM DOCTOR’S OFFICE TO COURT


Critics of this shift say it leaves consumers at the mercy of providers when it comes to medical costs. While insurers have been able to leverage their scale to negotiate rates down, ordinary individuals do not have that clout.


That gap may prove fertile ground to patients waging legal challenges against doctor bills.


Haavi Morreim, a lawyer and professor in the College of Medicine at the University of Tennessee, notes that individuals have the legal rights of any customer covered by U.S. contract law, which assumes that there will be a “reasonable charge” for the service.


Two cases based on this notion – one in Indiana filed by a patient against a hospital and another filed in Missouri by a hospital seeking payment from a patient – have reached appeals courts in the past year.


Laws dealing with “informed consent” may also play a role in putting the onus on doctors to clearly disclose costs when explaining treatment options. Doctors may be liable for a breach of fiduciary duty if their healthcare recommendations turn out to be too aligned with their financial interest, Morreim said.


“Courts are beginning to pay increased attention to this because more people are in high-deductible plans and more people are beginning to ask, ‘What does this cost?’” said Morreim, who has written several articles on the issue for law journals.


(Editing by Michele Gershberg, desking by G Crosse)


Health News Headlines – Yahoo! News



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