Media Decoder Blog: In Wake of Restructuring, NBC News President Quits

8:30 p.m. | Updated

The longest-serving president of any of the three network news divisions, Steve Capus of NBC News, stepped down from his position on Friday, six months after Comcast restructured its news units in a way that diminished his authority.

Pat Fili-Krushel, chairwoman of the NBCUniversal News Group, said in a brief telephone interview on Friday that she would “cast a wide net” while searching for a successor to Mr. Capus. In the interim, the leaders of the news division will report directly to her.

Ms. Fili-Krushel became Mr. Capus’s boss last July when Steve Burke, the chief executive of NBCUniversal, consolidated all of NBC’s news units — NBC News, the cable news channels MSNBC and CNBC, and its stake in the Weather Channel — under a new umbrella, the NBCUniversal News Group. Mr. Burke asked Ms. Fili-Krushel, one of his most trusted lieutenants, to run it, while keeping Mr. Capus and the heads of the other units in place.

Ms. Fili-Krushel worked early in her career at HBO and Lifetime. A veteran of the Walt Disney Company, where she helped program ABC, and  Time Warner, where she was an administrator, she is by her own admission not a journalist.  But now she is, by default, the highest-ranking woman in the American television news industry — not just at the moment, but in the history of the medium. The heads of the news divisions at ABC and CBS are men, as are the heads of the Fox News Channel, CNN, and Bloomberg.

Ms. Fili-Krushel has kept a low public profile, but has been a forceful presence behind the scenes, recently moving from her office on the 51st floor of 30 Rockefeller Center, near Mr. Burke’s, to a new one on the third floor, where NBC News is based. On Friday, she said she had spent her first six months “learning, listening and getting to know the players here.” She called the News Group an “unbelievably strong organization.”

Though Mr. Capus’s exit saddened many at NBC News on Friday, it came as little surprise. He had previously reported directly to Mr. Burke, but after the restructuring he reported to Ms. Fili-Krushel, and he made no secret of his unhappiness with the change. His contract had a clause that allowed him to leave in the event that he no longer reported to Mr. Burke, according to two people with direct knowledge of the arrangement at NBC, and he decided to exercise that right after months of contemplation. The people insisted on anonymity because they were not authorized by the network to speak publicly.

Mr. Capus told Ms. Fili-Krushel of his intent to leave last Friday. It is likely that he would have left sooner, but a series of major news stories kept him busy late last year — including Hurricane Sandy, the presidential election and the school shooting in Newtown, Conn. Mr. Capus also oversaw the network’s response to the kidnapping of Richard Engel and an NBC News crew in Syria last month.

“It has been a privilege to have spent two decades here, but it is now time to head in a new direction,” he wrote in an e-mail to staff members on Friday afternoon.

Mr. Capus guided NBC through a revolutionary time in news-gathering and distribution. He maintained the news division’s profitability, managed tensions between NBC News and its increasingly liberal cable channel MSNBC, and fostered new business ventures like an in-house production company and an annual education summit. Last year, he unwound an old deal with Microsoft to give the news division complete control over its Web site, now named NBCNews.com, for the first time.

Ms. Fili-Krushel wrote in a separate e-mail to staff members that “NBC News is America’s leading source of television news and Steve has been a big part of that success.”

NBC News is the producer of the most popular evening newscast in the country. But its single biggest source of profits, the morning show “Today,” fell to second place last year, behind ABC’s “Good Morning America,” for the first time since the 1990s. The decline caused widespread anxiety inside the news division and speculation that Mr. Capus would be relieved of his duties.

Inside NBC, both Mr. Capus and the executive producer of “Today,” Jim Bell, received much of the blame for the botched removal of Ann Curry from “Today” last June, which worsened the show’s already tenuous position in the ratings. Ms. Fili-Krushel was put in charge just a few weeks later.

Mr. Bell was replaced at “Today” last fall and is now the executive producer for NBC Olympics. Savannah Guthrie is now the co-host of “Today,” and Ms. Curry is a national and international correspondent for the network, but is rarely seen. Mr. Capus’s exit was seen by some at the network as the last shoe that had to drop.

In his e-mail to staff members, Mr. Capus called it an “extremely difficult decision to walk away,” noting that he started at NBC as a producer 20 years ago this month. He did not make any mention of what he would do next. “Journalism is, indeed, a noble calling, and I have much I hope to accomplish in the next phase of my career,” he wrote.

“Today” continues to lose to ABC’s “Good Morning America” among total viewers, but lately it has won a few weeks in the 25- to 54-year-old demographic that advertisers covet.

“NBC Nightly News” has more successfully fended off ABC’s “World News,” despite an aggressive push by ABC. Mr. Capus said, “NBC News has grown in all key metrics — from ratings and reputation to profitability.”

A version of this article appeared in print on 02/02/2013, on page B2 of the NewYork edition with the headline: In Wake of Restructuring, NBC News President Quits.

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Edward Koch dies at 88; outspoken mayor led New York City comeback

Edward I. Koch, a Greenwich Village lawyer who became mayor of New York in the late 1970s and led the city out of one of its worst financial crises by stabilizing the budget and restoring its swagger, has died. He was 88.

Koch died early Friday of congestive heart failure in a Manhattan hospital, his friend and spokesman, George Arzt said. Koch had been hospitalized Monday, a day before a documentary about him, "Koch," premiered in New York City. He had complained of trouble breathing and other ailments, and it was the latest of several hospitalizations for the former mayor in recent months.

For most of his adult life, Koch had lived alone in an apartment off Washington Square Park in Greenwich Village. It's where he departed the morning he rode a public bus to City Hall to be sworn in as the 105th mayor and where he returned 12 years later, at age 65, after a disastrous fourth run to keep the job he clearly relished and worked hard at. Voters had finally tired of his infatuation with himself and his racially divisive rhetoric; but far from retiring, Koch spent the rest of his life out of public office but never out of public view.

He juggled almost a dozen jobs including law partner, columnist, author, radio show host, playwright, movie reviewer, public speaker and appeared relentlessly in the media, a shtick-artist with one of the most recognizable New York accents in the world. When he wasn't bellowing at opponents on political round tables, he was hawking everything from diet aids to soft drinks in advertisements and popping up in screen cameos playing always himself, the quintessential New Yorker, alongside Carrie and the girls in episodes of "Sex in the City" or with Big Bird in "The Muppets Take Manhattan."

He was pivotal in a September 2011 upset that put a Republican into the heavily Democratic congressional district that had been held by Rep. Anthony Weiner, who had been forced to resign in a "sexting" scandal. Koch helped catapult Republican Bob Turner to an unlikely victory in the special election to replace Weiner after he endorsed Turner to show his anger with President Obama's Middle East policy. "Ed Koch was enough to turn this around," Democratic strategist Hank Sheinkopf said after Turner's win.

For his 86th birthday, New York's current mayor, Michael Bloomberg, renamed the Queensboro Bridge linking Manhattan to Koch's home borough of Queens after him, saying the bridge – now officially known as the Ed Koch Queensboro Bridge -- was like Koch: "a resilient, hard-working New York City icon."

"He was a great mayor, a great man, and a great friend," Bloomberg said in a statement Friday after Koch's death. "In elected office and as a private citizen, he was our most tireless, fearless, and guileless civic crusader. Through his tough, determined leadership and responsible fiscal stewardship, Ed helped lift the city out of its darkest days and set it on course for an incredible comeback."

New York Gov. Andrew Cuomo echoed the sentiment. "No New Yorker has -- or likely ever will -- voice their love for New York City in such a passionate and outspoken manner than Ed Koch," said Cuomo. "New York City would not be the place it is today without Ed Koch's leadership over three terms at City Hall."

City flags were ordered flown at half-staff.

"He was the epitome of New York--loud, funny, opinionated, smart," said Arzt, a former reporter who became Koch's spokesman in City Hall and had lunch with him every Saturday after he left, along with 10 other alumni of the administration. "Ed was very much a straight shooter, a champion of the middle class, a moderate Democrat akin to a Harry Truman. He defied categories."

In fact, Koch loved to enrage liberals by doing and saying the unthinkable--endorsing Republican politicians (John Lindsay, Rudolph Giuliani, George W. Bush) and their beliefs (the death penalty). But Koch also held fast to many liberal values. A civil libertarian, Koch made one of his first executive orders when he became mayor to add sexual preference to a citywide ban on job discrimination.

He not only never shied away from controversy, he invited it; unlike successors Giuliani and Michael Bloomberg, he enjoyed confrontation. He once wrestled an egg-throwing heckler to the floor before the police could move in.

Altogether Koch wrote (mostly co-authored) 15 books, including eight autobiographies, two children's books and multiple mystery novels starring himself as the detective. He also regularly reviewed movies and restaurants, and at last count had more than 6,200 followers on Twitter (@mayoredkoch).

Really, Koch would opine to whomever, whenever, never mincing words: Movie tickets were too expensive; the United Nations, after an anti-Israel vote, was "made up of gangsters, cutthroats and piranhas"; a Puerto Rican mayoral rival was a "poverty pimp"; Sarah Palin was likable "but she scares the hell out of me." He never lost interest in his absolutely favorite subject—himself. "How'm I doin'?" was his trademark question.

The only topics that remained off limits were his heroic service as an infantryman in World War II—he was awarded two battle stars—and his sexuality. A lifelong bachelor, Koch refused to delve into rumors of his homosexuality. "I ran in a total of 24 elections and won 21," he once told the New York Times. "I will not be a coward and say I am straight or I'm gay, because it's no one's business. I got where I am today not because of sexuality or gender but because people thought I was the best at what I did...."

In recent years, though Koch appeared to mellow, seeking reconciliation with many of his former rivals, he refused to yield when it came to standards for public service. As recently as the summer of 2010, at age 85, he ginned up a campaign called "New York Uprising" to reform state government. Despite a history of heart disease that left him with two pacemakers and a degenerative spinal disorder that caused the once-strapping 6-foot-1 former mayor to be stooped in old age, he embarked in a rented Jeep on a campaign-style press tour around upstate New York to shame reluctant legislators in their home districts to signing a pledge to "clean up Albany."

"I didn't willingly take this on," he told reporters. "I was waiting for someone else to do it.... It's only after six months or a year of going to every breakfast, lunch and dinner, where all they talked about is the dysfunctional Legislature ... I'm thinking somebody is going to stand up and challenge this in some form. But nobody did. So I said to myself, 'Well, if nobody will, I will.' "

This was shortly after Koch, ever the showman, revealed he'd finalized plans for his funeral and penned his gravestone epitaph about his love of his religion, Judaism, his city and his country.

In 2011, when the Queensboro Bridge was renamed, the former mayor enthused: "It's not a beautiful bridge. It's a workhorse bridge. It's craggy and shaggy, and I'm craggy and shaggy." He also hinted that he wouldn't mind if Newark Airport was renamed for him: E.I.K, he said, "kind of rhymes with J.F.K."

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Roseanne Barr to Star in, Produce New Series for NBC

NEW YORK (TheWrap.com) – NBC is betting on the up-again-down-again Roseanne Barr, signing the television icon to an overall deal that calls for her to develop a show she will star in and produce for the network. She will executive produce the series with Steven Greener, with whom she collaborated on “Roseanne’s Nuts” for Lifetime.

As part of the deal, Barr also will guest star in a three-episode arc on NBC’s “The Office” as talent agent Carla Fern. She will help Andy Bernard (Ed Helms) pursue the career in show business he has always dreamed about. That arc begins filming this week.

Barr came close to scoring a new show with NBC just a year ago. The network picked up her “Downwardly Mobile” to pilot last January but never ordered it to series. A multi-camera comedy starring Barr as a trailer park operator, it would have re-teamed her with “Roseanne” co-star John Goodman.

“Roseanne” aired on ABC for close to a decade, and was one of the top TV shows in the country for most of those years, winning her an Emmy and a Golden Globe. TV Guide named it one of the 50 greatest TV shows of all time in 2002, and it helped turn Barr, at its inception a stand-up comedian, into a TV star.

In the show’s final year, she tried to launch a Roseanne Conner spin-off, but wasn’t able to pull it off. She then segued into her own talk show, which lasted two years, before returning to stand-up comedy and taking assorted TV and film roles, making her big-screen debut in 1989s “She-Devil” with Meryl Streep.

In 1990 she performed a controversial, loud and screechy “Star-Spangled Banner” before a baseball game between the San Diego Padres and the Cincinnati Reds.’

She is represented by Paradigm.

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The New Old Age: Caregiving, Laced With Humor

“My grandmother, she’s not a normal person. She’s like a character when she speaks. Every day she’s playing like she’s an actress.”

These are words of love, and they come from Sacha Goldberger, a French photographer who has turned his grandmother, 93-year-old Frederika Goldberger, into a minor European celebrity.

In the photos, you can see the qualities grandson and grandmother have in common: a wicked sense of humor, an utter lack of pretension and a keen taste for theatricality and the absurd.

This isn’t an ordinary caregiving relationship, not by a long shot. But Sacha, 44 years old and unmarried, is deeply devoted to this spirited older relation who has played the role of Mamika (“my little grandmother,” translated from her native Hungarian) in two of his books and a photography exhibition currently underway in Paris.

As for Frederika, “I like everything that my grandson does,” she said in a recent Skype conversation from her apartment, which also serves as Sacha’s office. “I hate not to do anything. Here, with my grandson, I have the feeling I am doing something.”

Their unusual collaboration began after Frederika retired from her career as a textile consultant at age 80 and fell into a funk.

“I was very depressed because I lived for working,” she told me in our Skype conversation.

Sacha had long dreamed of creating what he calls a “Woody Allen-like Web site with a French Jewish humor” and he had an inspiration. What if he took one of the pillars of that type of humor, a French man’s relationship with his mother and grandmother, and asked Frederika to play along with some oddball ideas?

This Budapest-born baroness, whose family had owned the largest textile factory in Hungary before World War II, was a natural in front of the camera, assuming a straight-faced, imperturbable comic attitude whether donning a motorcycle helmet and goggles, polishing her fingernails with a gherkin, wearing giant flippers on the beach, lighting up a banana, or dressed up as a Christmas tree with a golden star on her head. (All these photos and more appear in “Mamika: My Mighty Little Grandmother,” published in the United States last year.)

“It was like a game for us, deciding what crazy thing we were going to do next, how we were going to keep people from being bored,” said Sacha, who traces his close relationship with his grandmother to age 14, when she taught him how to drive and often picked him up at school. “Making pictures was a very good excuse to spend time together.”

“He thought it was very funny to put a costume on me,” said Frederika. “And I liked it.”

People responded enthusiastically, and before long Sacha had cooked up what ended up becoming the most popular character role for Frederika: Super Mamika, outfitted in a body-hugging costume, tights, a motorcycle helmet and a flowing cape.

His grandmother was a super hero of sorts, because she had helped save 10 people from the Nazis during World War II, said Sacha. He also traced inspiration to Stan Lee, a Jewish artist who created the X-Men, The Hulk and the Fantastic Four for Marvel comics. “I wanted to ask what happens to these super heroes when they get old in these photographs with my grandmother.”

Lest this seem a bit trivial to readers of this blog, consider this passage from Sacha’s introduction to “Mamika: My Might Little Grandmother”:

In a society where youth is the supreme value; where wrinkles have to be camouflaged; where old people are hidden as soon as they become cumbersome, where, for lack of time or desire, it is easier to put our elders in hospices rather than take care of them, I wanted to show that happiness in aging was also possible.

In our Skype conversation, Sacha confessed to anxiety about losing his grandmother, and said, “I always was very worried about what would happen if my grandmother disappeared. Because she is exceptional.”

“I am not normal,” Frederika piped up at his side, her face deeply wrinkled, her short hair beautifully coiffed, seemingly very satisfied with herself.

“So, making these pictures to me is the best thing that could happen,” Sacha continued, “because now my grandma is immortal and it seems everyone knows her. I am giving to everybody in the world a bit of my grandma.”

This wonderful expression of caring and creativity has expanded my view of intergenerational relations in this new old age. What about you?

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Nikkei’s Best Weekly Run in 54 Years

TOKYO — The year 1959 was in many ways remarkable. America granted Alaska and Hawaii statehood, Fidel Castro took power in Cuba and Singapore gained its independence from Britain. The Barbie doll and pantyhose went on sale for the first time; Miles Davis recorded “Kind of Blue” at a New York studio.

Until Friday, 1959 was also the last time the Nikkei 225 stock index rallied for 12 straight weeks, driven by the quickening pace of Japan’s postwar economic boom. Now the index has repeated that feat. The Japanese business media have been quick to jump on the historical tidbit, trumpeting the Nikkei’s best weekly run in 54 years. The rally in 1959 actually lasted 17 weeks.

This time around, the Nikkei’s rally was motivated by the new Japanese prime minister, Shinzo Abe. Mr. Abe has galvanized markets by encouraging bold monetary measures to beat deflation, and hefty government spending to jump-start the economy. The result has been a weakening of the yen by 15 percent over the past three months, a boon for Japanese exporters, and a 25 percent surge in the stock market over the same period.

“The expectations pinned on Prime Minister Abe’s drive to tackle deflation and the strong yen are the driving force pushing stocks toward this postwar record,” the Nikkei newspaper said.

The market’s climb comes despite lackluster earnings by Japanese companies. Of the 54 companies on the Nikkei index that had posted results for the October-to-December quarter by Thursday, nearly two-thirds missed market expectations, according to Thomson Reuters StarMine, the investment research service. And for now, households have remained cool to the market buzz. Japanese household spending fell 0.7 percent in December from a year earlier in price-adjusted real terms, government data released Friday showed.

Nevertheless, Mr. Abe’s policies, dubbed “Abenomics,” are having “a positive psychological effect” on investors and corporate executives, Yasushi Hoshi, director of capital markets at the Daiwa Institute of Research, wrote in a note published Friday. “And the exchange rate and stock prices, if sustained, could themselves push up corporate earnings, leading to better corporate and consumer sentiment in a positive cycle.”

There are already signs that the weaker yen is bolstering some earnings. The video game maker Nintendo raised its profit forecast for its current financial year on Thursday even as the company reported disappointing sales of its game consoles.

Overall investor optimism is giving companies the benefit of the doubt. Honda Motor surprised investors Thursday by trimming its profit outlook, citing sluggish demand in China and Europe, but they still snapped up Honda shares early on Friday, and the stock finished the day 0.3 percent higher.

Still, there are budding concerns that Mr. Abe’s drive will bring about a dangerous bubble. “The results in the near term are an investment boom and bubble, but the longer-run consequences could be soaring inflation and fiscal crisis, followed by lengthy economic stagnation,” Ryutaro Kono, chief economist for Japan at BNP Paribas Securities, wrote in a recent report.

From a historical perspective, the Nikkei index and other asset prices remain far below the heights seen during Japan’s last economic bubble, in the late 1980s. For many global investors, the recent rally has only begun to reverse a slump in Japanese equities that has taken them to levels seen as ridiculously low. Shares on Tokyo’s broader Topix index have long traded below their book value, meaning that prices were less than what the companies would fetch if they were dissolved and their parts sold off.

Now, foreign investors are leading the charge, having poured a net ¥248.6 billion, or $2.7 billion, into Japanese stocks in the fourth week of January alone.

“We think there is latent demand because supply in this space has dwindled over the years and investors are thinking about coming back,” Patric de Gentile-Williams of Financial Risk Management, told the Hedge Funds Review on Wednesday, after making a $25 million investment in a Japanese equity fund run by Arena Capital Management. “If the new prime minister’s actions have a big effect, they might come back in a big way.”

Is Japan, then, on course for a wider recovery?

Not so fast, Yusuke Shimoda, an economist at the Japan Research Institute in Tokyo, wrote in a note to clients this past week. Japan’s recovery could sputter, he said, if the government cannot match its asset-inflating moves with growth strategies for the real economy. “It will be critical to put a growth strategy in action that will start a self-sustained recovery,” Mr. Shimoda said.

Nevertheless, Japan forecast Monday that its economy would grow by 2.5 percent in the fiscal year that starts in April, raising an earlier projection of 1.7 percent — an impressive rate for the world’s third-largest economy after the United States and China. Impressive, that is, unless investors look back to Japan’s rate of gross domestic product growth in 1959, which was 12.1 percent.

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Hagel counters critics as confirmation hearing begins

Former Sen. Chuck Hagel sparred with Sen. John McCain over whether the surge during the Iraq war was worthwhile.

WASHINGTON -- Making his first public comments after his nomination to lead the Pentagon, former Sen. Chuck Hagel said Thursday he stood by his record but also urged senators to look beyond controversial votes and statements he has made, which critics have seized on.

Appearing before the Senate Armed Services Committee for his confirmation hearing as defense secretary, Hagel sought to rebut critics who contend he may not push hard enough to prevent Iran from obtaining nuclear weapons, declaring himself "fully committed to the president's goal of preventing Iran from obtaining a nuclear weapon."

"My policy is one of prevention and not one of containment, and the president has made clear that is the policy of our government," Hagel said.

The hearing is Hagel’s first chance to explain his views since his selection last month ignited fierce opposition from several former Republican colleagues and pro-Israel groups. They contend Hagel was not tough enough on Iran during his two terms as a GOP senator from Nebraska, and warn that he might not push for a U.S. attack on Iran if one is needed.

PHOTOS: President Obama's second inauguration

[Updated, 8:32 a.m. Jan. 31: In a sharp exchange, Sen. John McCain (R-Ariz.) criticized Hagel's opposition to the George W. Bush administration's decision to send more troops to Iraq in 2007.

"The question is, were you right or were you wrong?" McCain said.

"I'm not going to give you a yes or no answer," Hagel said. "I think it's far more complicated than that."

The nominee said his opposition to the so-called surge was rooted in his opposition to the decision to invade Iraq in the first place.

He said he would leave the question of whether he was correct about the surge to the "judgment of history."

McCain responded: "I think history has already made a judgment about the surge, and you are on the wrong side of it."

Hagel acknowledged that he also disagreed with President Obama's decision to send 30,000 additional troops to Afghanistan in 2009.]

PHOTOS: President Obama’s past

Hagel has already met privately with dozens of senators and won over key Democratic support, most notably Charles E. Schumer of New York. Hagel used his opening statement before the committee to publicly defend himself, saying he was "proud" of his record.

He noted that in two terms in the Senate, he'd cast thousands of votes and given hundreds of interviews and speeches.

"As you all know, I am on the record on many issues. But no one individual vote, no one individual quote, no one individual statement defines me, my beliefs or my record," he said. "My overall worldview has never changed: that America has and must maintain the strongest military in the world; that we must lead the international community to confront threats and challenges together -- and take advantage of opportunities together --  and that we must use all tools of American power to protect our citizens and our interests."

Hagel offered a broad overview of his views on the issues that would be most pressing at the Pentagon, all in line with Obama administration policy.

On Afghanistan, he said U.S. forces' role should be limited to counter-terrorism and the training of Afghan forces.

He also said he would "keep up the pressure" on militant groups in Yemen, Somalia and North Africa. But his opening statement did not refer to the controversial campaign of drone strikes that is the core of the administration's counter-terrorism effort.

Though Hagel appears likely to win confirmation, he faces tough questioning, even from lawmakers who have announced they intend to vote for him. Sen Carl Levin (D-Mich.) referred to what he called Hagel's "troubling" statements about Israel, his calls for direct talks with the militant group Hamas, and his calls for not isolating Iran.

"While there is value in communicating with our adversaries, the formulation used by Sen. Hagel seemed to imply a willingness to talk to Iran on some issues that I believe most of us would view as non-negotiable," Levin said.

Even more critical was Sen. James Inhofe (R-Okla.), the committee's new ranking Republican, who said that "too often, it seems he is willing to subscribe to a worldview that is predicated on appeasing our adversaries while shunning our friends."

Asked about his votes against some bills imposing sanctions against Iran, Hagel acknowledged that he has long opposed unilateral sanctions but had supported other legislation targeting Iran.

"We were in a different place with Iran at the time," Hagel said. "It was never a question of did I disagree with the objective" of denying Iran a nuclear weapon.

Hagel was introduced by two other former senators, both former chairmen of the Armed Services Committee: Democrat Sam Nunn of Georgia and Republican John Warner of Virginia.

The confirmation of Hagel may be the most difficult of the slate of new Obama appointments for his second-term Cabinet, though John Brennan, the president's choice to lead the CIA, may also face resistance. John Kerry is set to be sworn in as secretary of State after a 94-3 confirmation vote Tuesday.

Just one Republican, Thad Cochran of Mississippi, has publicly stated his support for Hagel. Democrats have, though, begun to coalesce around his nomination, with Levin saying earlier this week that his colleagues were "leaning strongly" in his favor.

Outside groups have been mobilizing against Hagel, however. The group Americans for a Strong Defense, led by former Mitt Romney campaign aides, launched television advertisements in Alaska, Arkansas, Colorado, Louisiana and North Carolina, all states represented by Democratic senators facing reelection in 2014.

Senate Minority Leader Mitch McConnell (R-Ky.) on Tuesday declined to rule out the possibility that Republicans would require a 60-vote threshold for confirming Hagel.

"Sen. Hagel hasn't had his hearing yet, and I think it's too early to predict the conditions under which his nomination will be considered," McConnell said.

Sen. Lindsey Graham (R-S.C.) has said he would block Hagel’s nomination from coming to a vote unless the current Pentagon chief, Leon E. Panetta, agrees to testify about the Sept. 11, 2012, attack on the U.S. Consulate compound in Benghazi, Libya. A White House official downplayed the possibility that Hagel’s nomination could be blocked, saying negotiations were underway to let Panetta testify.

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Telecoms boom leaves rural Africa behind

JOHANNESBURG/FREETOWN (Reuters) – While mobile phone usage has exploded across Africa over the last decade, transforming daily life and commerce for millions, it’s a revolution that has left behind perhaps two thirds of its people.

Poor or no reception outside the towns helps explain why the continent’s mobile penetration, in terms of the percentage of the population using the service, is far lower than previously thought, and the cost of providing that service to impoverished, sparsely populated areas remains prohibitive.

In rural Sierra Leone, a country where GDP per capita is less than $ 400 a year, money doesn’t grow on trees, but mobile reception can, says street trader Abass Bangura in Freetown, the West African country’s capital.

In parts of Tonkolili, a district in the center of the country, or Kailahun to the east, it’s the only way you can get reception, he said.

“You climb stick, like mango tree, before you have network,” he said.

In South Sudan, the world’s newest state, it’s a similar story. Less than a year old, the country already has five mobile operators, and its capital, Juba, is teeming with giant billboards advertising mobile phones, but go just a few kilometers beyond a handful of fast-growing towns, and cell phones become useless.

Multiple SIM cards help users navigate patchy network coverage and take advantage of price promotions from rival operators.

That is typical of much of the continent.

With a population of just over a billion people, Africa has over 700 million SIM cards, but with most users owning at least two cards, penetration is only about 33 percent, according to a study released in November by industry research firm Wireless Intelligence.

“If we look at the fact that the rural population of Africa is about 60-70 percent of the population, and if we look at the degree of penetration into the rural market, it’s very, very low,” said Spiwe Chireka of advisory firm IDC.

In Nigeria, Africa’s most populous country, there are more than enough SIM cards for everyone, but penetration is only 61 percent, according to a 2012 study by research firm Informa.

The average mobile phone user in Nigeria owns an average of 2.39 SIM cards. Globally, only Indonesia is higher, with an average of 2.62 SIM cards per user.

Even in Africa’s biggest economy, South Africa, SIM numbers comfortably exceed the population, but given the number of people using multiple devices, actual population penetration is closer to 80 percent, says market leader Vodacom.

“You’ve got a lot of people buying SIMs, but maybe not enough phones to put it in,” said Olayemi Jinadu, an executive with the Sierra Leone arm of Indian telco Bharti Airtel.

COST VERSUS BENEFIT

The unserved rural millions could represent another growth opportunity for Africa-focused telcos like South Africa’s MTN Group, Bharti Airtel and Kuwait’s Zain, but first they have to figure out a cost-effective way to push into sub-Saharan Africa’s remote corners.

“There’s great potential, but the big concern for us is operational costs,” said Andre Claasson, chief operating officer at Zain South Sudan.

In rural Africa, the cost of running a network tower often exceeds the revenue it reaps. Fuel is typically about 40 percent of a tower’s operating cost, and in remote areas companies burn more diesel by bringing fuel to towers than is used powering them.

Although roughly 73 percent of Africa’s land has cell phone coverage, according to market research firm IDC, that still leaves vast tracts of rural Africa without network access.

Africa has 170,000 mobile towers now and needs another 60,000, according to tower company IHS Group, which at an average $ 200,000 each means an outlay of $ 12 billion.

“If you are an operator asked to spend $ 200,000 to build a site and another $ 2,000 a month to run it in an area with 500 people herding cows, it doesn’t make sense,” said Issam Darwish, IHS’s chief executive.

Average revenue per user is also low. It can vary between $ 1 and $ 10 per month, much lower than in developed markets such as the United States, which delivered ARPU of $ 51 in 2012 or Britain, $ 27.

Bharti, sub-Saharan Africa’s third-largest telecom group, says it makes $ 6.40 per user in Africa, which is higher than its home Indian market, where it makes only $ 3.30 a month, but the cost of operating in Africa is much higher and there isn’t a comparable middle class ready and able to spend more.

“You either have a handful of people in the affluent part of the society or you have lots of people who can’t afford the services,” its Chairman Sunil Mittal said last year.

Operators can save money by sharing towers, but even then, some sites will never make sense without government subsidies, analysts say.

African expansion has not been cheap for telcos. Over the past five years, mobile operators have spent a combined $ 16.5 billion on capital expenditure in the key markets of South Africa, Nigeria, Kenya, Senegal and Ghana, according to Wireless Intelligence.

Bharti has earmarked $ 1.5 billion for capex this year, while fourth-placed France Telecom is spending $ 9.3 billion between 2010 and 2015.

Spare cash is increasingly rare for debt-strapped European telecoms operators, which are cutting their dividends to cope with falling revenues and network upgrade costs in their home markets.

Some African regulators have set up funds to promote coverage, to which operators are expected to contribute.

In Sierra Leone, the Universal Access Development Fund (UADF) is yet to subsidize the cost of putting up a single mast, though it has been active for several years. The regulator complains networks do not contribute the fees they should.

“If we can’t subsidize, they’ll never erect towers there,” said Bashir Kamara, Project Manager at UADF.

($ 1 = 0.6350 British pounds)

(Additional reporting by Hereward Holland in Juba and Chijioke Ohuocha in Lagos; Editing by David Dolan and Will Waterman)

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ABC orders pilots for “Big Thunder” drama, Gothic soap opera

LOS ANGELES (TheWrap.com) – ABC has ordered pilots for the dramas “Big Thunder” and “Gothica,” the network said Tuesday.

“Big Thunder,” which is written by “Ice Age” writer Jason Fuchs (pictured) and executive produced by Chris Morgan (“Wanted,” “The Troop”) follows a brilliant doctor in late 19th century New York whose family is given a once-in-a-lifetime opportunity to relocate to a frontier mining town run by a powerful, but mysterious tycoon. However, they quickly realize that not everything in Big Thunder is as it seems.

ABC Studios is producing the pilot, which is based on the Big Mountain Thunder Railroad ride at several Disney-owned theme parks.

“Gothica,” meanwhile, is described as a “sexy gothic soap opera set in present day” that “weaves together a mythology that incorporates the legends of Dracula, Jekyll and Hyde, Frankenstein and Dorian Gray among others.”

The project, written by Matt Lopez, comes from ABC Studios and the Mark Gordon Company.

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Well: Myths of Weight Loss Are Plentiful, Researcher Says

If schools reinstated physical education classes, a lot of fat children would lose weight. And they might never have gotten fat in the first place if their mothers had just breast fed them when they were babies. But be warned: obese people should definitely steer clear of crash diets. And they can lose more than 50 pounds in five years simply by walking a mile a day.

Those are among the myths and unproven assumptions about obesity and weight loss that have been repeated so often and with such conviction that even scientists like David B. Allison, who directs the Nutrition Obesity Research Center at the University of Alabama at Birmingham, have fallen for some of them.

Now, he is trying to set the record straight. In an article published online today in The New England Journal of Medicine, he and his colleagues lay out seven myths and six unsubstantiated presumptions about obesity. They also list nine facts that, unfortunately, promise little in the way of quick fixes for the weight-obsessed. Example: “Trying to go on a diet or recommending that someone go on a diet does not generally work well in the long term.”

Obesity experts applauded this plain-spoken effort to dispel widespread confusion about obesity. The field, they say, has become something of a quagmire.

“In my view,” said Dr. Jeffrey M. Friedman, a Rockefeller University obesity researcher, “there is more misinformation pretending to be fact in this field than in any other I can think of.”

Others agreed, saying it was about time someone tried to set the record straight.

“I feel like cheering,” said Madelyn Fernstrom, founding director of the University of Pittsburgh Weight Management Center. When it comes to obesity beliefs, she said, “We are spinning out of control.”

Steven N. Blair, an exercise and obesity researcher at the University of South Carolina, said his own students believe many of the myths. “I like to challenge my students. Can you show me the data? Too often that doesn’t come into it.”

Dr. Allison sought to establish what is known to be unequivocally true about obesity and weight loss.

His first thought was that, of course, weighing oneself daily helped control weight. He checked for the conclusive studies he knew must exist. They did not.

“My goodness, after 50-plus years of studying obesity in earnest and all the public wringing of hands, why don’t we know this answer?” Dr. Allison asked. “What’s striking is how easy it would be to check. Take a couple of thousand people and randomly assign them to weigh themselves every day or not.”

Yet it has not been done.

Instead, people often rely on weak studies that get repeated ad infinitum. It is commonly thought, for example, that people who eat breakfast are thinner. But that notion is based on studies of people who happened to eat breakfast. Researchers then asked if they were fatter or thinner than people who happened not to eat breakfast — and found an association between eating breakfast and being thinner. But such studies can be misleading because the two groups might be different in other ways that cause the breakfast eaters to be thinner. But no one has randomly assigned people to eat breakfast or not, which could cinch the argument.

So, Dr. Allison asks, why do yet another study of the association between thinness and breakfast? “Yet, I can tell you that in the last two weeks I saw an association study of breakfast eating in Islamabad and another in Inner Mongolia and another in a country I never heard of.”

“Why are we doing these?” Dr. Allison asked. “All that time and effort is essentially wasted. The question is: ‘Is it a causal association?’” To get the answer, he added, “Do the clinical trial.”

He decided to do it himself, with university research funds. A few hundred people will be recruited and will be randomly assigned to one of three groups. Some will be told to eat breakfast every day, others to skip breakfast, and the third group will be given vague advice about whether to eat it or not.

As he delved into the obesity literature, Dr. Allison began to ask himself why some myths and misconceptions are so commonplace. Often, he decided, the beliefs reflected a “reasonableness bias.” The advice sounds so reasonable it must be true. For example, the idea that people do the best on weight-loss programs if they set reasonable goals sounds so sensible.

“We all want to be reasonable,” Dr. Allison said. But, he said, when he examined weight-loss studies he found no consistent association between the ambitiousness of the goal and how much weight was lost and how long it had stayed off. This myth, though, illustrates the tricky ground weight-loss programs have to navigate when advising dieters. The problem is that on average people do not lose much – 10 percent of their weight is typical – but setting 10 percent as a goal is not necessarily the best strategy. A very few lose a lot more and some people may be inspired by the thought of a really life-changing weight loss.

“If a patient says, ‘Do you think it is reasonable for me to lose 25 percent of my body weight,’ the honest answer is, ‘No. Not without surgery,’” Dr. Allison said. But, he said, “If a patient says, ‘My goal is to lose 25 percent of my body weight,’ I would say, ‘Go for it.’”

Yet all this negativism bothers people, Dr. Allison conceded. When he talks about his findings to scientists, they often say: “O.K., you’ve convinced us. But what can we do? We’ve got to do something.” He replies that scientists have an ethical duty to make clear what is established and what is speculation. And while it is fine to recommend things like bike paths or weighing yourself daily, scientists must make sure they preface their advice with the caveat that these things seem sensible but have not been proven.

Among the best established methods is weight-loss surgery, which, of course, is not right for most people. But surgeons have done careful studies to show that on average people lose substanial amounts of weight and their health improves, Dr. Allison said. For dieters, the best results occur with structured programs, like ones that supply complete meals or meal replacements.

In the meantime, Dr. Allison said, it is incumbent upon scientists to change their ways. “We need to do rigorous studies,” he said. “We need to stop doing association studies after an association has clearly been demonstrated.”

“I never said we have to wait for perfect knowledge,” Dr. Allison said. But, as John Lennon said, “Just give me some truth.”

---

Here is an overview of the obesity myths looked at by the researchers and what is known to be true:

MYTHS

Small things make a big difference. Walking a mile a day can lead to a loss of more than 50 pounds in five years.

Set a realistic goal to lose a modest amount.

People who are too ambitious will get frustrated and give up.

You have to be mentally ready to diet or you will never succeed.

Slow and steady is the way to lose. If you lose weight too fast you will lose less in the long run.

Ideas not yet proven TRUE OR FALSE

Diet and exercise habits in childhood set the stage for the rest of life.

Add lots of fruits and vegetables to your diet to lose weight or not gain as much.

Yo-yo diets lead to increased death rates.

People who snack gain weight and get fat.

If you add bike paths, jogging trails, sidewalks and parks, people will not be as fat.

FACTS — GOOD EVIDENCE TO SUPPORT

Heredity is important but is not destiny.

Exercise helps with weight maintenance.

Weight loss is greater with programs that provide meals.

Some prescription drugs help with weight loss and maintenance.

Weight-loss surgery in appropriate patients can lead to long-term weight loss, less diabetes and a lower death rate.

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DealBook: Justice Dept. Seeks to Block Anheuser's Deal for Modelo

The Justice Department sued on Thursday to block the Anheuser-Busch InBev proposed $20.1 billion deal to buy control of Grupo Modelo of Mexico, arguing that the merger would significantly reduce competition in the American beer market.

The deal, announced last summer, would add Corona Extra to the company’s formidable stable of brands, including Budweiser and Stella Artois.

But the Justice Department said in its lawsuit, filed in Federal District Court in Washington, that allowing the merger to proceed would reduce competition in the beer industry across the country as a whole and in 26 metropolitan areas in particular. The combined company would control about 46 percent of annual sales in the country, the government said, far outpacing Anheuser-Busch InBev’s closest competitor, MillerCoors.

“If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers,” William J. Baer, head of the Justice Department’s antitrust division, said in a statement. “This lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry.”

The deal is the biggest to be opposed by the Justice Department since 2011, when it sued to block the proposed $39 billion takeover by AT&T of T-Mobile USA.

The government’s move is the first significant effort to halt widespread consolidation in the beer industry in some time. Anheuser-Busch InBev itself was the product of a blockbuster merger between two of the world’s biggest brewers, and one of MillerCoors’s parents is the acquisitive SABMiller.

In its complaint, the Justice Department said Modelo had served as a low-price counterbalance to its larger competitors, resisting the price increases Anheuser-Busch InBev has promoted regularly.

In a statement, Anheuser-Busch said, “We remain confident in our position, and we intend to vigorously contest the D.O.J.’s action in federal court.”

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