Analysts Skeptical as Majority Owner Takes Role as Chief Executive of Sears

Elise Amendola/Associated Press

A Sears in Peabody, Mass.

Just hours after a board discussion on Monday, a note went out to Sears Holdings employees from Edward S. Lampert, the company’s majority owner and chairman, that he would now be its chief executive.

“I believe in our company,” Mr. Lampert wrote.

But not everyone shares his optimism.

Seven years after he engineered the merger of Sears and Kmart, Mr. Lampert’s plans for the company face a new round of skepticism.

On Monday, Sears announced that its chief executive of two years, Louis J. D’Ambrosio, would be stepping aside because of a health issue in his family and that Mr. Lampert would assume the role. Despite the unexpected departure, Sears is not expected to change course.

“The reality is, Eddie’s been running the company the whole time,” said Gary Balter, an analyst at Credit Suisse.

Mr. Lampert once stepped back from day-to-day management, but more recently he has increased involvement in Sears as he has scaled back his influence on other investments. He maintains an office at Sears headquarters in Hoffman Estates, Ill., although he lives on the East Coast.

If employees “wanted to make merchandising decisions, they had to fly up to Connecticut to get approval from Eddie. He was making day-to-day decisions in this company, and clearly he’s making the capital decisions,” Mr. Balter said.

But Mr. Lampert is a money man, not a merchant, and analysts question his plans for reviving Sears, which has faltered since he combined Sears and Kmart. It has valuable assets, they say, but sales and profitability continue to slide. In his most recent chairman’s letter, Mr. Lampert outlined some ways he wanted to take Sears forward, including building on its loyalty program and expanding what he called “integrated” options — allowing shoppers to buy online, in stores, via mobile devices or a combination. He highlighted Sears’s liquidity options and its ownership of and access to cash from Lands’ End, the clothing retailer Sears bought in 2002, and its real estate, “should the circumstances warrant.” He further wrote, “We do not expect to utilize or execute all of these options,” but he said he wanted to reassure vendors.

“If you’re unwilling to try new things, and to fail and learn, you don’t have a shot,” Mr. Lampert said in an interview last year. “That doesn’t mean you’re going to be successful, but you have to try to change.”

Mr. Lampert’s new role as chief executive of a struggling company is a new one for him.

When he was younger, Mr. Lampert made a name for himself with his fast rise through the ranks at Goldman Sachs, his brash courtship of Wall Street idols like Richard Rainwater and Robert Rubin and, when he started his investment fund ESL Investments in 1988, the high returns at the fund. He invested in struggling retailers like AutoNation and AutoZone in the 1990s and early 2000s, then bought a controlling stake in Kmart when it was in bankruptcy. In 2005, he completed the merger with Sears.

And, adding some Hollywood flair to the story line, after being kidnapped at gunpoint from a parking garage in 2003, Mr. Lampert, after being held for about 30 hours, managed to negotiate his own release.

Fortune called the billionaire “the best investor of his generation.” Bloomberg Businessweek asked if he was “The Next Warren Buffett?”

But Sears value has declined since then. His initial idea was to combine the best of Sears and Kmart and sell some appealing locations to competitors. But the recession meant the real estate was no longer in demand, and now many large retailers are downsizing or closing stores.

As the real estate options diminished, Sears was losing sales. The people Mr. Lampert hired to run the company were not retailers, and instead had backgrounds in fast food, supply chains and technology.

Sears’s sales have declined for five straight years, and its market capitalization now is 15 percent of what it was at the beginning of 2006. In the third quarter, the company lost $498 million, up from $410 million for the same quarter in 2011. Sales fell by $548 million, to $8.9 billion.

In the last year, Mr. Lampert has directed a cleanup of the balance sheet. He sold some valuable real estate, spun off business units and reduced inventory to assuage liquidity concerns after a dismal 2011 holiday sales season.

This year, it spun off a profitable hardware retail division and part of its stake in Sears Canada.

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Chemical Weapons Showdown With Syria Led to Rare Accord

Muzaffar Salman/Reuters

The violence in Syria continued on Monday. Above, Syrians went to the aid of a man who was wounded when a missile hit the al-Mashhad district of Aleppo.

WASHINGTON — In the last days of November, Israel’s top military commanders called the Pentagon to discuss troubling intelligence that was showing up on satellite imagery: Syrian troops appeared to be mixing chemicals at two storage sites, probably the deadly nerve gas sarin, and filling dozens of 500-pounds bombs that could be loaded on airplanes.

Within hours President Obama was notified, and the alarm grew over the weekend, as the munitions were loaded onto vehicles near Syrian air bases. In briefings, administration officials were told that if Syria’s increasingly desperate president, Bashar al-Assad, ordered the weapons to be used, they could be airborne in less than two hours — too fast for the United States to act, in all likelihood.

What followed next, officials said, was a remarkable show of international cooperation over a civil war in which the United States, Arab states, Russia and China have almost never agreed on a common course of action.

The combination of a public warning by Mr. Obama and more sharply worded private messages sent to the Syrian leader and his military commanders through Russia and others, including Iraq, Turkey and possibly Jordan, stopped the chemical mixing and the bomb preparation. A week later Defense Secretary Leon E. Panetta said the worst fears were over — for the time being.

But concern remains that Mr. Assad could now use the weapons produced that week at any moment. American and European officials say that while a crisis was averted in that week from late November to early December, they are by no means resting easy.

“I think the Russians understood this is the one thing that could get us to intervene in the war,” one senior defense official said last week. “What Assad understood, and whether that understanding changes if he gets cornered in the next few months, that’s anyone’s guess.”

While chemical weapons are technically considered a “weapon of mass destruction” — along with biological and nuclear weapons — in fact they are hard to use and hard to deliver. Whether an attack is effective can depend on the winds and the terrain. Sometimes attacks are hard to detect, even after the fact. Syrian forces could employ them in a village or a neighborhood, some officials say, and it would take time for the outside world to know.

But the scare a month ago has renewed debate about whether the West should help the Syrian opposition destroy Mr. Assad’s air force, which he would need to deliver those 500-pound bombs.

The chemical munitions are still in storage areas that are near or on Syrian air bases, ready for deployment on short notice, officials said.

The Obama administration and other governments have said little in public about the chemical weapons movements, in part because of concern about compromising sources of intelligence about the activities of Mr. Assad’s forces. This account is based on interviews with more than half a dozen military, intelligence and diplomatic officials, all of whom spoke on the condition of anonymity because of the intelligence matters involved.

The head of Germany’s foreign intelligence service, the BND, warned in a confidential assessment last month that the weapons could now be deployed four to six hours after orders were issued, and that Mr. Assad had a special adviser at his side who oversaw control of the weapons, the German newsmagazine Der Spiegel reported. Some American and other allied officials, however, said in interviews that the sarin-laden bombs could be loaded on planes and airborne in less than two hours.

“Let’s just say right now, it would be a relatively easy thing to load this quickly onto aircraft,” said one Western diplomat.

How the United States and Israel, along with Arab states, would respond remains a mystery. American and allied officials have talked vaguely of having developed “contingency plans” in case they decided to intervene in an effort to neutralize the chemical weapons, a task that the Pentagon estimates would require upward of 75,000 troops. But there have been no evident signs of preparations for any such effort.

The United States military has quietly sent a task force of more than 150 planners and other specialists to Jordan to help the armed forces there, among other things, prepare for the possibility that Syria will lose control of its chemical weapons.

Israel’s prime minister, Benjamin Netanyahu, was reported to have traveled to Jordan in recent weeks, and the Israeli news media have said the topic of discussion was how to deal with Syrian weapons if it appeared that they could be transferred to Lebanon, where Hezbollah could lob them over the border to Israel. But the plans, to the extent they exist, remain secret.

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Virtual U.: Massive Open Online Courses Prove Popular, if Not Lucrative Yet

Online Learning, en Masse:
More top colleges are offering free massive open online courses, but companies and universities still need to figure out a way to monetize them.

MOUNTAIN VIEW, Calif. — In August, four months after Daphne Koller and Andrew Ng started the online education company Coursera, its free college courses had drawn in a million users, a faster launching than either Facebook or Twitter.

The co-founders, computer science professors at Stanford University, watched with amazement as enrollment passed two million last month, with 70,000 new students a week signing up for over 200 courses, including Human-Computer Interaction, Songwriting and Gamification, taught by faculty members at the company’s partners, 33 elite universities.

In less than a year, Coursera has attracted $22 million in venture capital and has created so much buzz that some universities sound a bit defensive about not leaping onto the bandwagon.

Other approaches to online courses are emerging as well. Universities nationwide are increasing their online offerings, hoping to attract students around the world. New ventures like Udemy help individual professors put their courses online. Harvard and the Massachusetts Institute of Technology have each provided $30 million to create edX. Another Stanford spinoff, Udacity, has attracted more than a million students to its menu of massive open online courses, or MOOCs, along with $15 million in financing.

All of this could well add up to the future of higher education — if anyone can figure out how to make money.

Coursera has grown at warp speed to emerge as the current leader of the pack, striving to support its business by creating revenue streams through licensing, certification fees and recruitment data provided to employers, among other efforts. But there is no guarantee that it will keep its position in the exploding education technology marketplace.

“No one’s got the model that’s going to work yet,” said James Grimmelmann, a New York Law School professor who specializes in computer and Internet law. “I expect all the current ventures to fail, because the expectations are too high. People think something will catch on like wildfire. But more likely, it’s maybe a decade later that somebody figures out how to do it and make money.”

For their part, Ms. Koller and Mr. Ng proclaim a desire to keep courses freely available to poor students worldwide. Education, they have said repeatedly, should be a right, not a privilege. And even their venture backers say profits can wait.

“Monetization is not the most important objective for this business at this point,” said Scott Sandell, a Coursera financier who is a general partner at New Enterprise Associates. “What is important is that Coursera is rapidly accumulating a body of high-quality content that could be very attractive to universities that want to license it for their own use. We invest with a very long mind-set, and the gestation period of the very best companies is at least 10 years.”

But with the first trickles of revenue now coming in, Coursera’s university partners expect to see some revenue sooner.

“We’ll make money when Coursera makes money,” said Peter Lange, the provost of Duke University, one of Coursera’s partners. “I don’t think it will be too long down the road. We don’t want to make the mistake the newspaper industry did, of giving our product away free online for too long.”

Right now, the most promising source of revenue for Coursera is the payment of licensing fees from other educational institutions that want to use the Coursera classes, either as a ready-made “course in a box” or as video lectures students can watch before going to class to work with a faculty member.

Ms. Koller has plenty of other ideas, as well. She is planning to charge $20, or maybe $50, for certificates of completion. And her company, like Udacity, has begun to charge corporate employers, including Facebook and Twitter, for access to high-performing students, starting with those studying software engineering.

This fall, Ms. Koller was excited about news she was about to announce: Antioch University’s Los Angeles campus had agreed to offer its students credit for successfully completing two Coursera courses, Modern and Contemporary American Poetry and Greek and Roman Mythology, both taught by professors from the University of Pennsylvania. Antioch would be the first college to pay a licensing fee — Ms. Koller would not say how much — to offer the courses to its students at a tuition lower than any four-year public campus in the state.

“We think this model will spread, helping academic institutions offer their students a better education at a lower price,” she said.

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Oil Sand Industry in Canada Tied to Higher Carcinogen Level

Todd Korol/Reuters

An oil sands mine Fort McMurray, Alberta.

OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.

For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure.

“One of the biggest challenges is that we lacked long-term data,” said John P. Smol, the paper’s lead author and a professor of biology at Queen’s University in Kingston, Ontario. “So some in industry have been saying that the pollution in the tar sands is natural, it’s always been there.”

The researchers found that to the contrary, the levels of those deposits have been steadily rising since large-scale oil sands production began in 1978.

Samples from one test site, the paper said, now show 2.5 to 23 times more PAHs in current sediment than in layers dating back to around 1960.

“We’re not saying these are poisonous ponds,” Professor Smol said. “But it’s going to get worse. It’s not too late but the trend is not looking good.” He said that the wilderness lakes studied by the group were now contaminated as much as lakes in urban centers.

The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.

Battles are also under way over the proposed construction of the Keystone XL pipeline, which would move the oil down through the western United States and down to refineries along the Gulf Coast, or an alternative pipeline that would transport the oil from landlocked Alberta to British Columbia for export to Asia.

The researchers, who included scientists at Environment Canada’s aquatic contaminants research division, chose to test for PAHs because they had been the subject of earlier studies, including one published in 2009 that analyzed the distribution of the chemicals in snowfall north of Fort McMurray. That research drew criticism from the government of Alberta and others for failing to provide a historical baseline.

“Now we have the smoking gun,” Professor Smol said.

He said he was not surprised that the analysis found a rise in PAH deposits after the industrial development of the oil sands, “but we needed the data.” He said he had not entirely expected, however, to observe the effect at the most remote test site, a lake that is about 50 miles to the north.

Asked about the study, Adam Sweet, a spokesman for Peter Kent, Canada’s environment minister, emphasized in an e-mail that with the exception of one lake very close to the oil sands, the levels of contaminants measured by the researchers “did not exceed Canadian guidelines and were low compared to urban areas.”

He added that an environmental monitoring program for the region announced last February 2012 was put into effect “to address the very concerns raised by such studies” and to “provide an improved understanding of the long-term cumulative effects of oil sands development.”

Earlier research has suggested several different ways that the chemicals could spread. Most oil sand production involve large-scale open-pit mining. The chemicals may become wind-borne when giant excavators dig them up and then deposit them into 400-ton dump trucks.

Upgraders at some oil sands projects that separate the oil bitumen from its surrounding sand are believed to emit PAHs. And some scientists believe that vast ponds holding wastewater from that upgrading and from other oil sand processes may be leaking PAHs and other chemicals into downstream bodies of water.

Read More..

Oil Sand Industry in Canada Tied to Higher Carcinogen Level

Todd Korol/Reuters

An oil sands mine Fort McMurray, Alberta.

OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.

For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure.

“One of the biggest challenges is that we lacked long-term data,” said John P. Smol, the paper’s lead author and a professor of biology at Queen’s University in Kingston, Ontario. “So some in industry have been saying that the pollution in the tar sands is natural, it’s always been there.”

The researchers found that to the contrary, the levels of those deposits have been steadily rising since large-scale oil sands production began in 1978.

Samples from one test site, the paper said, now show 2.5 to 23 times more PAHs in current sediment than in layers dating back to around 1960.

“We’re not saying these are poisonous ponds,” Professor Smol said. “But it’s going to get worse. It’s not too late but the trend is not looking good.” He said that the wilderness lakes studied by the group were now contaminated as much as lakes in urban centers.

The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.

Battles are also under way over the proposed construction of the Keystone XL pipeline, which would move the oil down through the western United States and down to refineries along the Gulf Coast, or an alternative pipeline that would transport the oil from landlocked Alberta to British Columbia for export to Asia.

The researchers, who included scientists at Environment Canada’s aquatic contaminants research division, chose to test for PAHs because they had been the subject of earlier studies, including one published in 2009 that analyzed the distribution of the chemicals in snowfall north of Fort McMurray. That research drew criticism from the government of Alberta and others for failing to provide a historical baseline.

“Now we have the smoking gun,” Professor Smol said.

He said he was not surprised that the analysis found a rise in PAH deposits after the industrial development of the oil sands, “but we needed the data.” He said he had not entirely expected, however, to observe the effect at the most remote test site, a lake that is about 50 miles to the north.

Asked about the study, Adam Sweet, a spokesman for Peter Kent, Canada’s environment minister, emphasized in an e-mail that with the exception of one lake very close to the oil sands, the levels of contaminants measured by the researchers “did not exceed Canadian guidelines and were low compared to urban areas.”

He added that an environmental monitoring program for the region announced last February 2012 was put into effect “to address the very concerns raised by such studies” and to “provide an improved understanding of the long-term cumulative effects of oil sands development.”

Earlier research has suggested several different ways that the chemicals could spread. Most oil sand production involve large-scale open-pit mining. The chemicals may become wind-borne when giant excavators dig them up and then deposit them into 400-ton dump trucks.

Upgraders at some oil sands projects that separate the oil bitumen from its surrounding sand are believed to emit PAHs. And some scientists believe that vast ponds holding wastewater from that upgrading and from other oil sand processes may be leaking PAHs and other chemicals into downstream bodies of water.

Read More..

Euro Watch: Unemployment Continues to Climb in Euro Zone

PARIS — Unemployment in the euro zone rose to a new record in November, according to data released Tuesday that also showed that the troubles in the 17-nation currency zone are straining its strongest member, Germany.

The euro zone jobless rate rose to a new high of 11.8 percent in November from 11.7 percent in October, Eurostat, the statistical agency of the European Union, reported from Luxembourg. Eurostat estimates that about 18.8 million in the euro zone were unemployed in November – 2 million more than a year earlier.

Germany has provided necessary momentum to Europe’s overall economy throughout the past three years, proving resilient to the crisis plaguing the common currency, largely due to the strength of its exports.

But on Tuesday, the Federal Statistics Office in Berlin said that German imports slid 3.7 percent in November, while exports dropped 3.4 percent, resulting in a narrowing of Germany’s trade surplus to €14.6 billion, or $19 billion.

German factory orders also fell in November amid weak demand from outside the euro area, the Economy Ministry in Berlin said Tuesday. Orders, adjusted for seasonal swings and inflation, dropped 1.8 percent from October, when they jumped a revised 3.8 percent.

“The November numbers are not a one-off but an extension of the current trend of weakening exports,” Carsten Brzeski, an economist at ING, wrote in a research note on Tuesday in which he pointed out an overall decline in German exports of about 4 percent since last May.

“Today’s data confirmed our view that exports should have turned from driver of growth into drag on growth,” he wrote.

A separate report from Eurostat showed retail sales fell 2.6 percent in November from a year earlier, though they managed a 0.1 percent gain from October.

The latest dire reports come as the governing council of the European Central Bank prepares to hold a policy meeting Thursday, followed by an interest-rate announcement. Despite a sharp dip in bank lending reported last week that has some analysts suggesting the central bank might try new steps to stimulate the economy, economists surveyed by Reuters expect the E.C.B. to leave policy unchanged this month, as it waits for a clearer picture of this year’s economic situation to emerge.

Like their counterparts in the United States, Japan and Britain, the euro zone monetary authorities have already opened the spigots, allowing banks to borrow essentially as much as they want at the benchmark rate. Mario Draghi, the E.C.B. governor, has pledged to do whatever is necessary to ensure the stability of the euro, including, if necessary, buying the sovereign bonds of Spain and Italy to hold their borrowing costs to sustainable levels.

The central bank's action has succeeded in calming markets and driving down government bond yields for embattled countries. The European Commission reported Tuesday that an index of economic sentiment in the euro zone had improved in December by 1.3 points, to 87.0 “Economic sentiment in the euro area improved among consumers and across all sectors, except retail trade,” the commission reported.

Europe also got a vote of confidence from Tokyo on Tuesday, as Finance Minister Taro Aso said Japan would buy bonds of the European Stability Mechanism, the euro zone bailout fund, as well as euro sovereign debt.

“The financial stability of Europe will help the stability of foreign exchange rates, including the yen,” Mr. Aso was quoted by the Nikkei newspaper as saying.

Attacking joblessness may require governments to ease back on austerity measures that many economists, including some at the International Monetary Fund, say might have gone too far. In France, President François Hollande has vowed to turn around the flagging labor market in France, where, according to Eurostat, unemployment as 10.5 percent in November.

Eurostat said Spain, suffering from the collapse of a property bubble and struggling to cope with tough austerity measures, had the highest unemployment rate, at 26.6 percent. Greece, the beleaguered country where the sovereign debt crisis began, was next at 26.0 percent, according to September data. Austria, at 4.5 percent, tiny Luxembourg, at 5.1 percent, and Germany, at 5.4 percent, were the lowest.

Worryingly, youth unemployment continues to grow, with 5.8 million people under 25 classified as jobless in November, up 420,000 from a year earlier.

In Berlin for talks with Chancellor Angela Merkel on Tuesday, the Greek prime minister, Antonis Samaras, singled out youth unemployment as one of the largest challenges Greece faces in trying to revive its economy. But he told reporters before meeting the chancellor that his overall message was one of optimism.

“I see the glass half-full,” Mr. Samaras said before taking part in an economic conference held behind closed doors in the German capital. “We’re delivering and Europe’s helping.”

It was the Greek prime minister’s second trip to Berlin since taking office and although the mood appeared lighter than during his inaugural visit in August, which came on the heels of calls from within Ms. Merkel’s government for Greece to leave the common currency, his country still faces enormous challenges.

Greece is focusing its efforts on winning back the trust of Europeans, as well as the markets, Mr. Samaras said. But he stressed that the high unemployment, especially among young people, was weighing heavily on Greeks.

“I would like to make it clear up front that our country is making enormous efforts and many are paying a high price, in order to get things back on track,” Mr. Samaras said.

Ms. Merkel stressed that Greece’s European partners must not leave it alone with its troubles, perhaps wary of the fragility of Mr. Samaras’ three-party coalition government which has been forced to push through deeply unpopular, painful reforms.

“We also must do everything to guarantee economic growth, security and jobs,” Ms. Merkel said.

David Jolly reported from Paris. James Kanter in Brussels and Niki Kitsantonis in Athens contributed reporting.

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Supporters Back Strike at Newspaper in China

James Pomfret/Reuters

Demonstrators gathered outside the headquarters of Southern Weekly newspaper Monday in Guangzhou, China.

BEIJING — Hundreds of people gathered outside the headquarters of a newspaper office in southern China on Monday to show their support for journalists who had declared a strike to protest what they called overbearing censorship by provincial propaganda officials.

The journalists, who work for Southern Weekend, a relatively liberal newspaper that has come under increasing pressure from officials in recent years, also received support on the Internet from celebrities and well-known commentators.

“Hoping for a spring in this harsh winter,” Li Bingbing, an actress, said to her 19 million followers on a microblog account. Yao Chen, an actress with more than 31 million followers, cited a quotation by Aleksandr Solzhenitsyn, the Russian Nobel laureate and dissident: “One word of truth outweighs the whole world.”

Many of the people who showed up Monday at the newspaper offices in Guangzhou, the capital of Guangdong Province, carried banners with slogans and white and yellow chrysanthemums, a flower that symbolizes mourning. One banner read: “Get rid of censorship. The Chinese people want freedom.” Police officers watched the protesters without immediately taking any harsh actions.

The angry journalists at Southern Weekend have been calling for the removal of Tuo Zhen, the top propaganda official in Guangdong, whom the journalists blame for overseeing a change in a New Year’s editorial that ran last week and was supposed to have called for greater respect for rights enshrined in the constitution under the headline “China’s Dream, the Dream of Constitutionalism,” according to the China Media Project at the University of Hong Kong. The editorial went through layers of changes and ultimately became one praising the current political system, in which the Communist Party exercises authority over all aspects of governance.

A well-known entrepreneur, Hung Huang, said on her microblog that the actions of a local official had “destroyed, overnight, all the credibility the country’s top leadership had labored to re-establish since the 18th Party Congress,” the November gathering in Beijing that was the climax of the leadership transition.

One journalist for Southern Weekend said Monday afternoon that negotiations between the various parties had been scheduled later in the day, but there were no results from any talks as of Monday evening.

It was unclear how many employees in the newsroom had heeded the calls for a strike. It appeared Sunday that many of Southern Weekend’s reporters had declared themselves on strike. A local journalist who went by the newspaper’s Beijing office on Monday said the building appeared to be open but quiet. One employee told the journalist that the people there were not on strike. Dozens of supporters showed up outside the building at various times, some carrying signs and flowers.

The conflict was exacerbated Sunday night by top editors at the newspaper, who posted a message on the publication’s official microblog saying that the New Year’s editorial had been written with the consent of editors at the newspaper.

According to an account from a newspaper employee posted online on Monday, that statement was made after pressure was exerted on the top editors by Yang Jian, the head of the party committee at Southern Media, the parent company that runs Southern Weekend and other publications. Southern Weekend’s editor in chief, Huang Can, then pressured an employee to give up the official microblog password so the statement could be posted on the microblog.

Neither Mr. Yang nor Mr. Huang could be reached for comment Monday.

Some political analysts have said the conflict raises questions about whether the central government, led by Xi Jinping, the new party chief, will support the idea of a more open media by moving to support the protesting journalists. In his first trip outside Beijing, Mr. Xi traveled to Guangdong and praised the market-oriented economic policies put in place by Deng Xiaoping, the former supreme leader. But more recently, Mr. Xi has said that China must respect its socialist roots.

Resolving the Southern Weekend tensions could also be a test for Hu Chunhua, the new party chief in Guangdong and a potential candidate to succeed Mr. Xi as the leader of China in a decade. Mr. Hu’s predecessor, Wang Yang, was regarded by many Western political analysts as being a “reformer,” but he presided over a tightening of media freedoms in the province and specifically over Southern Media.

On Monday, People’s Daily, the party’s mouthpiece, ran a signed commentary that referred to a recent meeting of propaganda officials in Beijing and said propaganda officials should “follow the rhythm of the times” and help the authorities establish a “pragmatic and open-minded image.” Some people have interpreted that as support for officials in adopting a more enlightened approach in dealing with the news media.

But Global Times, a populist newspaper, ran a scathing editorial that said Southern Weekend was merely a newspaper and should not challenge the system.

“Even in the West, mainstream media would not choose to openly pick a fight with the government,” the editorial said. Xinhua, the state news agency, published the editorial online.

Jonathan Ansfield contributed reporting. Mia Li and Shi Da and contributed research.

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Google’s Rivals Say F.T.C. Antitrust Ruling Missed the Point

WASHINGTON — One of the more surprising conclusions drawn by the Federal Trade Commission when it dropped its nearly two-year antitrust investigation into Google last week was that Google, far from harming consumers, had actually helped them.

Alex Wong/Getty Images

Jon Leibowitz, right, the Federal Trade Commission chairman, speaking last week after the decision was announced.

But some critics of the inquiry now contend that the commission found no harm in Google’s actions because it was looking at the wrong thing.

Instead of considering harm to people who come to Google to search for information, Google’s competitors and their supporters say that the government should have been looking at whether Google’s actions harmed its real customers — the companies that pay billions of dollars each year to advertise on Google’s site.

In its reports, the F.T.C. did not detail how it defined harm or what quantitative measures it had used to determine that Google users were better off.

But interviews with people on all sides of the investigation — government officials, Google supporters, advocates for Microsoft and other competitors, and antitrust experts and economists — show that many of the yardsticks the commission used to measure its outcomes were remarkably similar to Google’s own. Not surprisingly, they cast Google in a favorable light.

At issue were changes that Google made in recent years to its popular search page. Google makes frequent adjustments to the formulas that determine what results are generated when a user enters a search. Currently, it makes more than 500 changes a year, or more than one each day.

Users rarely notice the changes in the formulas, or algorithms, that generate search results, but businesses do. If a change in the formulas causes a business to rank lower in the order of results generated by a search, it is likely to miss potential customers.

What customers are now seeing reflects changes in the format of Google results. For certain categories of searches — travel information, shopping comparisons and financial data, for example — Google has begun presenting links to its own related services.

People close to the investigation said that Google had presented the F.T.C. with the results of tests with focus groups hired by an outside firm to review different versions of a Google search results page. After Google acquired ITA, a travel search business, in 2011, it began testing a new way to display flight results.

The company asked test users to compare side-by-side examples of a results page with just the familiar 10 blue links to specialty travel sites with a page that had at the top a box containing direct links to airlines and fares.

People who reviewed the Google data said tests with hundreds of people showed that fewer than one in five users preferred the page with links only. Users said they liked the box of flight results, so Google reasoned that making the change was better for the consumer.

“There is a deep science to search evaluation,” Amit Singhal, a senior vice president who oversees Google’s search operation, said in an interview on Friday. “A lot of work goes into every change we make.”

But the changes were not better for companies or alternative travel sites that were pushed off the first page of results by Google’s flight box and associated links. By pushing links to competing sites lower, Google might be making things easier for people who come to it for free search. But it also is having a negative effect on competitors, shutting off traffic for those sites.

Drawing fewer customers as a result of Google’s free links, those competitors are forced to advertise more to draw traffic. And advertisers who aren’t competitors have fewer places to go to reach consumers, meaning Google can use its market power to raise advertising prices.

“There might be no consumer harm if Google eliminates Yelp,” said one Microsoft advocate, who spoke on the condition of anonymity because of the likelihood of further interactions with the F.T.C. “But advertisers certainly are harmed.”

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Tehran Is Choked by Annual Buildup of Air Pollution

TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.

For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.

On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.

Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.

“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.

The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.

Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.

But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.

Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.

A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.

Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.

The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.

The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.

On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.

In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.

Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.

Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.

For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.

“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”

Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.

“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”

Read More..

Tehran Is Choked by Annual Buildup of Air Pollution

TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.

For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.

On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.

Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.

“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.

The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.

Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.

But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.

Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.

A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.

Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.

The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.

The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.

On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.

In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.

Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.

Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.

For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.

“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”

Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.

“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”

Read More..