Scant Proof Is Found to Back Up Claims by Energy Drinks





Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.




Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.


The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.


“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.


Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.


Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.


As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.


Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.


“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”


A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.


In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.


Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.


Consider the case of taurine, an additive used in most energy products.


On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.


But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.


Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.


Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.



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Auto sales reach a new post-recession high









In a key sign of a stronger economy, automakers posted a strong December to cap off the industry's best annual U.S. sales since 2007.


The strong sales — Nissan, Hyundai, Kia, Mercedes-Benz, Subaru, Audi and Porsche all set annual U.S. sales records — led several encouraging economic reports out Thursday.


The private sector grew by 215,000 jobs in December, boosted by solid gains in construction, professional services and trade and transportation, according to Automatic Data Processing. Meanwhile, planned layoffs announced in December plunged to 32,556 — the second-lowest monthly total of 2012, according to outplacement consulting firm Challenger, Gray & Christmas Inc. Overall, last year had the lowest 12-month job-cut total since 1997.





That contrasted with a murkier forecast for the retail sector. Although stores moved plenty of product through the holidays, much of it sold at deep discounts, raising concerns about maintaining sales momentum. Major chains did, however, post a 4.5% sales increase over December 2011, beating analysts' expectations, according to a Thomson Reuters tally of 17 retailers.


Auto sales and a strengthening housing recovery look to be the big drivers of the economy this year, said David Shulman, senior economist at the UCLA Anderson Forecast.


"Part of the auto recovery is tied to housing, as businesses and the construction trades go out and purchase trucks and other vehicles," Shulman said.


December truck sales were particularly strong. Beyond the housing recovery, the surge was driven by big discounts, as Ford and Chevrolet battled for market share, and a worry by business that Congress would end certain tax advantages for truck purchases in its "fiscal cliff" negotiations. (The tax benefits ultimately survived the political fray.)


As the industry heads into 2013, analysts project annual sales of about 15.5 million vehicles, barring an unforeseen disaster or political meltdown over budget issues in Washington.


"I think the underlying fundamentals of the economy are very sound," said Mark Reuss, president of General Motors' North American operations. "Access to money is sound, you see employment steadily increasing.... That's pretty upbeat."


Automakers sold 14.5 million vehicles last year, up 13.4% from 2011, according to Autodata Corp. That included almost 1.4 million sold last month, a 9% gain compared with the prior December.


Still, some car companies are maintaining caution.


"It would have been nice if all the open questions with the 'fiscal cliff' would have been resolved over the holiday. But clearly they weren't, and that does extend this period of uncertainty from a consumer point of view," said Jonathan Browning, chief executive of Volkswagen Group of America.


Nonetheless, U.S. sales of the automaker's VW brand grew 35.4% to 44,005 vehicles last month — its best December since 1970.


Ford's F-series trucks, Chevrolet's Camaro, Toyota's Camry and Honda's CR-V were the bestselling models in their segments of the market.


In an age-old battle, GM's Chevrolet Camaro narrowly edged out Ford's Mustang — 84,391 versus 82,995 — to become the top-selling muscle car.


But Ford remained king in trucks. With sales of 645,316, its F-series pickup was the bestselling vehicle of any type in America last year, outselling the Chevrolet Silverado, which had sales of 418,312.


Once again, Toyota had the bestselling passenger car. It sold 404,886 Camrys, making the Camry the top-selling car and No. 3 among all vehicles. Honda sold 331,872 Accords and 317,909 Civics last year.


Honda's CR-V took the crown in the small sport utility segment. Honda sold 281,652 CR-Vs, while Ford's Escape finished at 261,008.


The BMW brand topped the luxury segment, ending 2012 with sales of 281,460 vehicles, a 13.5% gain from 2011. The Mercedes-Benz brand reported record annual sales of 274,134 vehicles, up 11.8% from the prior year. Meanwhile, Audi, the third German luxury brand, came on strong. It sold 139,310 new cars and SUVs, eclipsing the prior year's sales by 18.5%.


In the rechargeable car segment, Chevrolet's Volt retained an edge over Nissan's Leaf. GM sold 23,461 of the plug-in hybrid Volts last year — three times what it sold the previous year. Nissan sold 9,819 of the all-electric Leafs, just 145 more than in the prior year. Later this month it is set to announce improvements to the vehicle that it hopes will improve sales.


Volkswagen ruled sales of diesel vehicles. The automaker sold 90,295 diesels in 2012 — up 55% from 2011. Diesels now account for 1 of every 5 VW sales in the nation.


Nissan, including its Infiniti brand, sold more than 1.1 million vehicles, up 9.5% from 2011. It was also the first time the Nissan brand saw U.S. annual sales top 1 million. But Nissan was also one of the few automakers to report that its December U.S. sales declined, falling 1.6% to 99,290 vehicles from a year earlier.


A host of new vehicle offerings should help the industry's sales this year and next.


Automakers plan to make 43 new vehicle introductions in the U.S. this year — up nearly 50% from 2012 levels, according to auto research firm R.L. Polk & Co. In addition, 60 vehicle redesigns are expected in the coming year.


"A lot of marketing dollars are put into the product launches," said Tom Libby, a Polk analyst. "That drives showroom traffic and sales."


jerry.hirsch@latimes.com





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'Cliff' deal lifts stocks and doubts









WASHINGTON — Despite the huge relief rally on Wall Street, the incomplete resolution of the so-called fiscal cliff will do little to boost the economy but assures an intense budget battle that is expected to weigh on spending and hiring at least over the next few months.


The New Year's Day deal let payroll taxes for all workers revert to their previous higher rate, though it avoided the worst of the "fiscal cliff" issues by blocking tax-rate increases on all but the wealthiest Americans and postponing federal spending cuts.


That means workers will start seeing on average about $20 less a week in their paychecks starting this month, a cut in incomes that is expected to dampen spending and contribute to slower hiring.





But that's not what business leaders and economists are fretting about; the payroll tax cut was meant to be temporary, and most had factored its expiration into their new year's forecast. The big concern is that the deal did nothing to reduce government spending and fell short of taking needed steps to stabilize the rising U.S. debt.


Lawmakers also left for the new Congress the hard work of raising the nation's debt limit before the end of February, the rough deadline for action in the latest Treasury Department estimates.


Policymakers still must try in the next two months to replace $1.2 trillion in automatic spending cuts over the next decade with a package that would cause less economic damage.


And the fates of many tax deductions and loopholes are up in the air because overhauls of the individual and corporate tax codes are expected to take place this year as part of a deficit-reduction plan.


Wall Street, however, rejoiced. In the exuberant first day of trading in the new year, the Dow Jones industrial average surged 308 points, or 2.4%, to nearly 13,413. The rally gave the Dow its best day since Dec. 20, 2011.


"There's relief that something got passed that was better than the worst-case scenario," said Doug Cote, chief investment strategist with ING Investment Management U.S.


But he called the rally one of "false relief" because the longer-term deficit problems remain an unresolved threat.


"There's still plenty of uncertainty, unfortunately, that remains," said John Engler, president of the Business Roundtable, a group of top corporate chief executives.


The group's quarterly survey last month projected the economy would maintain roughly last year's mediocre growth of 2% in 2013, and Tuesday's deal probably won't change that forecast much, he said.


Still, Engler said: "You can certainly say the potential for some harm was averted, but the potential for greater certainty still lies ahead."


Some analysts say prolonged uncertainty — coupled with the loss of consumer spending from higher payroll taxes — could hold back employers from hiring and spending as they wait for Congress to make more decisions about the budget.


The Bureau of Labor Statistics will release employment numbers for December on Friday, and economists are generally expecting continued steady growth of about 150,000 jobs, a decent number that would slowly bring down the unemployment rate.


But that report may be the best for months ahead if reduced demand and concerns about the upcoming budget fight cause businesses to pull back.


"The cautiousness on the part of businesses will persist," said Michael Gapen, senior U.S. economist at Barclays in New York. He reckons that the biggest hits to the labor market may be in the first quarter when companies purge payrolls after the holiday season.


The deal did extend emergency unemployment benefits for some 2 million long-term jobless workers who faced an abrupt end to their economic life support, providing about $30 billion in aid that would be pumped directly into the economy.


It also permanently fixed the alternative minimum tax, which threatened to hit millions of middle-income Americans because the provision, which was enacted in 1969 and aimed at making sure the wealthy paid some taxes, had not been indexed to inflation.


Businesses, too, expressed satisfaction with some parts of the tax agreement. Congress permanently extended much of the George W. Bush-era tax cuts, which gave companies clarity on income tax rates.





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Review: Nintendo’s TVii tops button-laden remotes






LOS ANGELES (AP) — Nintendo‘s TV-watching tool for the new Wii U game console beats my regular remote control hands down.


Called TVii, the service transforms how you watch television in three key ways. It turns the touch-screen GamePad controller for the Wii U into a remote control for your TV and set-top box. It groups your favorite shows and sports teams together, whether it’s on live TV or an Internet video service such as Hulu Plus. And it offers water-cooler moments you can chat about on social media.






It takes some getting used to, and I had a lot of re-learning to do after years of using my thumb to channel surf. But once I did, I found the service an advance from the mass of buttons on most TV remote controls.


TVii comes free with the Wii U, although it didn’t become available in the U.S. until mid-December, about a month after the game machine’s debut.


One nice touch is that TVii gives you a way to search for shows over Internet video apps and live TV all in one place. I can then choose whether to watch it on the big TV or on my controller’s touch screen, which measures 6.2 inches diagonally.


Handling these different sources of video at once is a tall order, and Nintendo Co. does it pretty well. No one else has combined live and Web TV as seamlessly before. As the lines blur between the two, I would hope some of TVii’s advances are copied and improved upon by other gadget makers and TV signal providers.


For starters, TVii asks for your TV maker, your set-top box maker, your location and your TV provider (that could be an antenna). TVii then uses infrared codes to control your TV just like the old remote, and it can offer a traditional channel guide for live TV shows. TVii also asks for your favorite shows, sports teams and movies. This helps it create an easy-to-understand grouping of shows you might want to watch.


I appreciate the way TVii walked me through the setup process. It was refreshing, given the misfortune I recently had of trying to program the remote control that came with my cable set-top box, which is about as fun as doing your tax returns. TVii takes away the need to read folded-up instruction manuals that appear to be written by and for electronics hobbyists.


After the setup, TVii presents you with a series of icons for Favorites, TV, Movies, Sports and Search. A little avatar of your identity is in one corner, and tapping on it lets you adjust your favorites or go through the setup again. Each person in a household can have a different avatar and set of favorites.


In Favorites, your shows are listed with cover art, and you can swipe through the offerings. Tapping one, say, “The Mindy Project,” will pull up an episode list with pictures and brief summaries. Choosing an episode will bring up a range of options — the channel if it’s on live TV, or buttons for Hulu Plus or Amazon, where you can pay for monthly access or just one episode through the service’s app. (The free version of Hulu is blocked on gadgets, including the Wii U and tablet computers. Apple’s iTunes, unsurprisingly, isn’t integrated.) The option of clicking through to Netflix will be added some time in 2013.


One hiccup is that if you want to watch a show on live TV now, it asks if your TV’s input source is already set to the set-top box, rather than the Wii U or another gadget such as a DVD player. If it is, you tap “yes” and the channel changes. If not, you have to tap until the source switches to the right one and then tap “yes.” Still, there’s no need to go back to your TV’s remote control.


The other menu items for TV, Movies, Sports and Search operate pretty similarly. Eventually you’ll get a range of options to watch. In the case of sports, you’ll likely see several game possibilities, with the latest score showing up on each game icon.


As an alternative, you can resort to a physical TV button on the GamePad that brings up touch controls that mimic a simplified, standard remote.


Another option is using an altogether separate interface in which favorite channels and other controls are displayed graphically on a semi-circular wheel. It looks strange, and I wouldn’t recommend it.


Anyone who is frustrated by the jumble of cables and boxes that now surround TVs will see TVii’s appeal. My wife said she liked the ease of holding and touching the controller, rather than fiddling with the button-laden remote. One downside I can see with TVii is that you have to keep looking down to figure out what to watch. And you have to plug it in frequently, as the GamePad controller will die out after three to five hours of use.


TVii also offers a standard channel guide in which you can scroll up and down for programs on different channels or right and left for different times of day. A touch will change the channel to the program, which is nice.


For certain shows and sporting events, TVii will supply a running list of key events called “TV tags.” These descriptions of events, like the precise moment when Mindy’s Christmas party descends into chaos, are displayed on the GamePad’s screen, along with a screenshot. Tapping on one opens up a comment window, and an onscreen keyboard allows you to make a comment. For sports, you get a description of each play, such as the number of yards thrown in a pass, beside a graphic that gets updated.


Not many people have Wii U consoles yet, nor is everyone tuned to TVii. As a result, I found myself with only one or two commenters to share my thoughts with.


If you’ve connected TVii to Facebook and Twitter (again, some sign-up is involved), your comments will go out to your friends and followers, but the TV tag that you are commenting on won’t show up, so they might not know what you’re talking about. TVii adds the hashtag “NintendoTVii” to help readers take a guess.


In the end, TVii isn’t perfect.


It isn’t yet able to program your digital video recorder, although it will do so for TiVo DVRs by March. Sports are limited to pro and college basketball and football, and there’s no integration with fantasy sports leagues. And the battery life of the GamePad is short.


A review unit I was sent failed to take a charge and had to be replaced, although I haven’t found others who have had the same problem.


These irritations aside, Nintendo has given us a way to control the clutter of channels, apps and devices crowding around the TV. It’s relatively easy and intuitive and some updates are on the way. Considering the garble of the TV universe, that’s pretty good.


___


About TVii:


TVii turns the GamePad controller for the Wii U into a remote control that integrates your live TV and Internet video experience. The service is free, but you’ll need a Wii U game console, which starts at $ 300. You’ll also need to pay extra to use video services such as Hulu Plus, Amazon and Netflix.


Gaming News Headlines – Yahoo! News





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'Lincoln,' 'Les Miz,' 'Argo' earn producers honors


LOS ANGELES (AP) — The Civil War saga "Lincoln," the musical "Les Miserables" and the Osama bin Laden thriller "Zero Dark Thirty" are among the nominees announced Wednesday for the top honor from the Producers Guild of America.


Other best-picture contenders are the Iran hostage-crisis thriller "Argo"; the low-budget critical favorite "Beasts of the Southern Wild"; the slave-turned-bounty-hunter saga "Django Unchained"; the shipwreck story "Life of Pi"; the first-love tale "Moonrise Kingdom"; the lost-souls romance "Silver Linings Playbook"; and the James Bond adventure "Skyfall."


Walt Disney dominated the guild's animation category with three of the five nominees: "Brave," ''Frankenweenie" and "Wreck-It Ralph." The other nominees are Focus Features' "ParaNorman" and Paramount's "Rise of the Guardians."


Along with honors from other Hollywood professional groups such as actors, directors and writers guilds, the producer prizes help sort out contenders for the Academy Awards. Those nominations come out Jan. 10.


The guild, an association of Hollywood producers, hands out its 24th annual prizes Jan. 26. The big winner often goes on to claim the best-picture honor at the Oscars, which follow on Feb. 24.


Previously announced nominees by the Producers Guild for best documentary are "A People Uncounted," ''The Gatekeepers," ''The Island President," ''The Other Dream Team" and "Searching for Sugar Man."


Other nominees:


— TV drama series: "Breaking Bad," ''Downton Abbey," ''Game of Thrones," ''Homeland," ''Mad Men."


— TV comedy series: "30 Rock," ''The Big Bang Theory," ''Curb Your Enthusiasm," ''Louie," ''Modern Family."


— Long-form television: "American Horror Story," ''The Dust Bowl," ''Game Change," ''Hatfields & McCoys," ''Sherlock."


— Non-fiction television: "American Masters," ''Anthony Bourdain: No Reservations," ''Deadliest Catch," ''Inside the Actors Studio," ''Shark Tank."


— Live entertainment and talk television: "The Colbert Report," ''Jimmy Kimmel Live," ''Late Night with Jimmy Fallon," ''Real Time with Bill Maher," ''Saturday Night Live."


— Competition television: "The Amazing Race," ''Dancing with the Stars," ''Project Runway," ''Top Chef," ''The Voice."


— Sports program: "24/7," ''Catching Hell," ''The Fight with Jim Lampley," ''On Freddie Roach," ''Real Sports with Bryant Gumbel."


— Children's program: "Good Luck Charlie," ''iCarly," ''Phineas and Ferb," ''Sesame Street," ''The Weight of the Nation for Kids: The Great Cafeteria Takeover."


___


Online:


http://www.producersguild.org


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Op-Ed Contributor: Our Imaginary Weight Problem





ACCORDING to the United States government, nearly 7 out of 10 American adults weigh too much. (In 2010, the Centers for Disease Control and Prevention categorized 74 percent of men and 65 percent of women as either overweight or obese.)




But a new meta-analysis of the relationship between weight and mortality risk, involving nearly three million subjects from more than a dozen countries, illustrates just how exaggerated and unscientific that claim is.


The meta-analysis, published this week in The Journal of the American Medical Association, reviewed data from nearly a hundred large epidemiological studies to determine the correlation between body mass and mortality risk. The results ought to stun anyone who assumes the definition of “normal” or “healthy” weight used by our public health authorities is actually supported by the medical literature.


The study, by Katherine M. Flegal and her associates at the C.D.C. and the National Institutes of Health, found that all adults categorized as overweight and most of those categorized as obese have a lower mortality risk than so-called normal-weight individuals. If the government were to redefine normal weight as one that doesn’t increase the risk of death, then about 130 million of the 165 million American adults currently categorized as overweight and obese would be re-categorized as normal weight instead.


To put some flesh on these statistical bones, the study found a 6 percent decrease in mortality risk among people classified as overweight and a 5 percent decrease in people classified as Grade 1 obese, the lowest level (most of the obese fall in this category). This means that average-height women — 5 feet 4 inches — who weigh between 108 and 145 pounds have a higher mortality risk than average-height women who weigh between 146 and 203 pounds. For average-height men — 5 feet 10 inches — those who weigh between 129 and 174 pounds have a higher mortality risk than those who weigh between 175 and 243 pounds.


Now, if we were to employ the logic of our public health authorities, who treat any correlation between weight and increased mortality risk as a good reason to encourage people to try to modify their weight, we ought to be telling the 75 million American adults currently occupying the government’s “healthy weight” category to put on some pounds, so they can move into the lower risk, higher-weight categories.


In reality, of course, it would be nonsensical to tell so-called normal-weight people to try to become heavier to lower their mortality risk. Such advice would ignore the fact that tiny variations in relative risk in observational studies provide no scientific basis for concluding either that those variations are causally related to the variable in question or that this risk would change if the variable were altered.


This is because observational studies merely record statistical correlations: we don’t know to what extent, if any, the slight decrease in mortality risk observed among people defined as overweight or moderately obese is caused by higher weight or by other factors. Similarly, we don’t know whether the small increase in mortality risk observed among very obese people is caused by their weight or by any number of other factors, including lower socioeconomic status, dieting and the weight cycling that accompanies it, social discrimination and stigma, or stress.


In other words, there is no reason to believe that the trivial variations in mortality risk observed across an enormous weight range actually have anything to do with weight or that intentional weight gain or loss would affect that risk in a predictable way.


How did we get into this absurd situation? That is a long and complex story. Over the past century, Americans have become increasingly obsessed with the supposed desirability of thinness, as thinness has become both a marker for upper-class status and a reflection of beauty ideals that bring a kind of privilege.


In addition, baselessly categorizing at least 130 million Americans — and hundreds of millions in the rest of the world — as people in need of “treatment” for their “condition” serves the economic interests of, among others, the multibillion-dollar weight-loss industry and large pharmaceutical companies, which have invested a great deal of money in winning the good will of those who will determine the regulatory fate of the next generation of diet drugs.


Anyone familiar with history will not be surprised to learn that “facts” have been enlisted before to confirm the legitimacy of a cultural obsession and to advance the economic interests of those who profit from that obsession.


Don’t expect those who have made their careers on fomenting panic to understand that our current definition of “normal weight” makes absolutely no sense.


Paul Campos is a professor of law at the University of Colorado, Boulder, and the author of “The Obesity Myth: Why America’s Obsession With Weight Is Hazardous to Your Health.”



Read More..

'Cliff' deal lifts stocks and doubts









WASHINGTON — Despite the huge relief rally on Wall Street, the incomplete resolution of the so-called fiscal cliff will do little to boost the economy but assures an intense budget battle that is expected to weigh on spending and hiring at least over the next few months.


The New Year's Day deal let payroll taxes for all workers revert to their previous higher rate, though it avoided the worst of the "fiscal cliff" issues by blocking tax-rate increases on all but the wealthiest Americans and postponing federal spending cuts.


That means workers will start seeing on average about $20 less a week in their paychecks starting this month, a cut in incomes that is expected to dampen spending and contribute to slower hiring.





But that's not what business leaders and economists are fretting about; the payroll tax cut was meant to be temporary, and most had factored its expiration into their new year's forecast. The big concern is that the deal did nothing to reduce government spending and fell short of taking needed steps to stabilize the rising U.S. debt.


Lawmakers also left for the new Congress the hard work of raising the nation's debt limit before the end of February, the rough deadline for action in the latest Treasury Department estimates.


Policymakers still must try in the next two months to replace $1.2 trillion in automatic spending cuts over the next decade with a package that would cause less economic damage.


And the fates of many tax deductions and loopholes are up in the air because overhauls of the individual and corporate tax codes are expected to take place this year as part of a deficit-reduction plan.


Wall Street, however, rejoiced. In the exuberant first day of trading in the new year, the Dow Jones industrial average surged 308 points, or 2.4%, to nearly 13,413. The rally gave the Dow its best day since Dec. 20, 2011.


"There's relief that something got passed that was better than the worst-case scenario," said Doug Cote, chief investment strategist with ING Investment Management U.S.


But he called the rally one of "false relief" because the longer-term deficit problems remain an unresolved threat.


"There's still plenty of uncertainty, unfortunately, that remains," said John Engler, president of the Business Roundtable, a group of top corporate chief executives.


The group's quarterly survey last month projected the economy would maintain roughly last year's mediocre growth of 2% in 2013, and Tuesday's deal probably won't change that forecast much, he said.


Still, Engler said: "You can certainly say the potential for some harm was averted, but the potential for greater certainty still lies ahead."


Some analysts say prolonged uncertainty — coupled with the loss of consumer spending from higher payroll taxes — could hold back employers from hiring and spending as they wait for Congress to make more decisions about the budget.


The Bureau of Labor Statistics will release employment numbers for December on Friday, and economists are generally expecting continued steady growth of about 150,000 jobs, a decent number that would slowly bring down the unemployment rate.


But that report may be the best for months ahead if reduced demand and concerns about the upcoming budget fight cause businesses to pull back.


"The cautiousness on the part of businesses will persist," said Michael Gapen, senior U.S. economist at Barclays in New York. He reckons that the biggest hits to the labor market may be in the first quarter when companies purge payrolls after the holiday season.


The deal did extend emergency unemployment benefits for some 2 million long-term jobless workers who faced an abrupt end to their economic life support, providing about $30 billion in aid that would be pumped directly into the economy.


It also permanently fixed the alternative minimum tax, which threatened to hit millions of middle-income Americans because the provision, which was enacted in 1969 and aimed at making sure the wealthy paid some taxes, had not been indexed to inflation.


Businesses, too, expressed satisfaction with some parts of the tax agreement. Congress permanently extended much of the George W. Bush-era tax cuts, which gave companies clarity on income tax rates.





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OneVietnam nonprofit connects donors with people in need









When the nonprofit OneVietnam first revved up its outreach efforts with a $5,000 grant, it did something that left supporters stunned.


Charity representatives bought iPods and distributed the then-trendy devices to disabled people in remote villages in Vietnam, urging them to share their stories, their hardships, their views on life in a country that many people had fled during wartime.


"Everyone told us, 'If you give them an iPod, they will sell it to ease their burdens,' " said Uyen Nguyen, a former economic consultant and a co-founder of OneVietnam.








Instead, recipients seemed to understand that it was their moment to let fellow Vietnamese scattered around the globe know that they need their help. Through the iStories, OneVietnam connected donors with the disabled and the desperate, leveraging fundraising through social media.


The San Francisco-based group, started by a trio of friends, re-launched this fall with a network of about 30 groups. It won a $100,000 grant from the Ford Foundation and created its iPod story-sharing effort with $5,000 from Yahoo. The charity also gained a vote of confidence from U.S. Secretary of State Hillary Clinton, who invited the group to do a demo at a conference focusing on immigrant populations


"We saw others like Kickstarter.org or Kiva.org emerge and do really well. And they're fantastic, but I see their main focus is on one project at a time," Nguyen said. "Everything now is powered by sustainability."


Participants log onto OneVietnam.org and scroll through a menu of organizations, from the Vietnamese American Arts & Letters Assn. in Santa Ana to Boat People SOS. Would-be donors can connect directly with a person who needs help, whether a refugee still struggling to rebuild from Hurricane Katrina or a person in Vietnam largely out of touch with technology.


By providing a one-click portal for both donor and recipient, OneVietnam seeks to make giving, and receiving, easy.


"Unlike other platforms, this is specific to one community," said donor Erin O'Brien of Los Angeles, who teaches Asian American studies at UC Irvine and the Claremont Colleges. "It's very difficult to donate to people in Vietnam because electronic banking isn't the norm, and online money transfers aren't common. They make it more accessible through their website."


Since September, OneVietnam has collected more than $75,000 for nonprofits through its portal, according to organizers.


While people of Vietnamese descent once had only a vague idea of what their peers were doing in Los Angeles or Sydney or Montreal, OneVietnam allowed them to connect and share social service efforts. Vietnam Talking Points, the news arm of OneVietnam, mixed in news and features about the diaspora's different generations.


"There's a silent majority out there who care about Vietnam, who understand the historical implication of what happened in the past, the plight, the migration," said Paul Pham, another co-founder who studied computer science at UC Santa Cruz.


"But they want to move forward," he said. "They no longer associate it with war but with people — people who need our attention and help to continue with their lives."


Pham, who once engineered Hotmail's bulk mail delivery system, volunteered for years in Vietnam's outlying provinces, crafting huts destroyed by seasonal flooding. He met Nguyen and James Bao, both UC Berkeley graduates, when they came to him in 2009 with the OneVietnam concept.


Diep Vuong, president of the Pacific Links Foundation, working to fight human trafficking along Vietnam's borders, describes OneVietnam as "one more tool" to aid nonprofits in their constant and sometimes desperate search for dollars.


"It's the direction of the times to operate online," she said, "but I worry that the generation who are well-connected on the Internet may not have enough money to give regularly versus some of the older people who have set aside the money to give."


David Teece, who heads the Institute for Business Innovation at UC Berkeley and serves on OneVietnam's board of directors, said he's confident the group will evolve into "something stronger."


"They're really pioneering, with an emphasis on philanthropy and development. Sharing news, sharing events, keeping people in touch with what's going on back home and here is not relevant just to Vietnam," he said. "It's a concept that can be applied to the Philippines, or Indonesia. It's 90% inspiration, 10% best practices, again all for sharing."


anh.do@latimes.com





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Ground Zero Volunteers Face Obstacles to Compensation





On the day the terrorists flew into the World Trade Center, the Wu-Tang Clan canceled its meeting with a record mixer named Richard Oliver, so Mr. Oliver rushed downtown from his Hell’s Kitchen apartment to help out.




He said he spent three sleepless days at ground zero, tossing body bags. “Then I went home, ate, crashed, woke up,” he said. He had left his Dr. Martens boots on the landing outside his apartment, where he said they “had rotted away.”


“That was kind of frightening,” he continued. “I was breathing that stuff.”


After the Sept. 11 attacks, nothing symbolized the city’s rallying around like many New Yorkers who helped at ground zero for days, weeks, months, without being asked. Now Mr. Oliver, suffering from back pain and a chronic sinus infection, is among scores of volunteers who have begun filing claims for compensation from a $2.8 billion fund that Congress created in 2010.


But proving they were there and eligible for the money is turning out to be its own forbidding task.


The other large classes of people who qualify — firefighters, police officers, contractors, city workers, residents and students — have it relatively simple, since they are more likely to have official work orders, attendance records and leases to back them up. But more than a decade later, many volunteers have only the sketchiest proof that they are eligible for the fund, which is expected to make its first awards early this year. (A separate $1.5 billion treatment fund also was created.)


They are volunteers like Terry Graves, now ill with lung cancer, who kept a few business cards of people she worked with until 2007, then threw them away. Or Jaime Hazan, a former Web designer with gastric reflux, chronically inflamed sinuses and asthma, who managed to dig up a photograph of himself at ground zero — taken from behind.


Or Mr. Oliver, who has a terse two-sentence thank-you note on American Red Cross letterhead, dated 2004, which does not meet the requirement that it be witnessed or sworn.


“For some people, there’s great records,” said Noah H. Kushlefsky, whose law firm, Kreindler & Kreindler, is representing volunteers and others who expect to make claims. “But in some respects, it was a little bit of a free-for-all. Other people went down there and joined the bucket brigade, talked their way in. It’s going to be harder for those people, and we do have clients like that.”


As documentation, the fund requires volunteers to have orders, instructions or confirmation of tasks they performed, or medical records created during the time they were in what is being called the exposure zone, including the area south of Canal Street, and areas where debris was being taken.


Failing that, it will be enough to submit two sworn statements — meaning the writer swears to its truth, under penalty of perjury — from witnesses describing when the volunteers were there and what they were doing.


Proving presence at the site might actually be harder than proving the illness is related to Sept. 11, since the rules now allow a host of ailments to be covered, including 50 kinds of cancer, despite an absence of evidence linking cancer to ground zero.


A study by the New York City health department, just published in the Journal of the American Medical Association, found no clear association between cancer and Sept. 11, though the researchers noted that some cancers take many years to develop.


Unlike the original compensation fund, administered by Kenneth Feinberg, which dealt mainly with people who were killed or maimed in the attack, “This one is dealing with injuries that are very common,” said Sheila L. Birnbaum, a former mediator and personal injury defense lawyer, who is in charge of the new fund. “So it’s sort of a very hard process from the fund’s point of view to make the right call, and it requires some evidence that people were actually there.”


Asked how closely the fund would scrutinize documents like sworn statements, Ms. Birnbaum said she understood how hard it was to recreate records after a decade, and was going on the basic assumption that people would be honest.


In his career as a record mixer, Mr. Oliver, 56, has been associated with 7 platinum and 11 gold records, and 2 Grammy credits, which now line the walls of his condominium in College Point, Queens. He said he first got wind of the Sept. 11 attacks from a client, the Wu-Tang Clan. “One of the main guys called me: ‘Did you see what’s on TV? Because our meeting ain’t going to happen,’ ” he recalled.


Having taken a hazmat course after high school, he called the Red Cross and was told they needed people like him. “I left my soon-to-be-ex-wife and 1-year-old son and went down,” he said. “I came back three days later,” after surviving on his own adrenaline, Little Debbie cakes handed out to volunteers and bottled water. After working for three days setting up a morgue, he was willing to go back, he said, but “they said we have trained people now, thank you very much for your service.”


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2012 was a good year for high-end home sales in L.A. County









Last year was the best for high-end home sales since the housing bubble burst, and among those making the A list for celebrity mega-deals were Ryan Seacrest, Ellen DeGeneres and Jennifer Aniston.

Twice as many homes were sold in the $5-million-plus range in Los Angeles County than three years ago, the low mark after the housing crash, according to the real estate information firm DataQuick. Through November, the latest month for which counts are available, 296 home sales had appeared in the public record above $5 million, the most since 2007, as the top of the market reflected the growing strength in overall home sales during 2012.






Topping sales locally was Oracle Corp. head Larry Ellison's purchase of a three-structure, copper-roofed compound along Malibu's Carbon Beach for $36.944 million, according to public records. Former Yahoo Inc. Chief Terry Semel and his wife, Jane, were the sellers.

A close second in price was Seacrest buying DeGeneres' three-property compound in Beverly Hills for $36.5 million. (Tying the amount the "American Idol" host paid was a non-celebrity transaction: an 11,313-square-foot beachfront mansion on nearly 7 acres in Malibu that closed in late December for $36.5 million.) Seacrest also offloaded his Mediterranean villa in Hollywood Hills West for $11 million.

DeGeneres and spouse Portia de Rossi moved to an 8,500-square-foot house in Beverly Hills designed by acclaimed midcentury architect Hal Levitt. The purchase price was $17.4 million.

The daytime host and comedian also sold her 4,088-square-foot Malibu house — on 1.26 bluff-top acres with a tennis court, a lap pool and beach access — for $13 million. DeGeneres bought the ocean-view place from acting couple Brad Pitt and Angelina Jolie in late 2011 for $12 million.

In a third transaction topping the $30-million mark, C. Frederick Wehba, co-founder of the international real estate investment firm BentleyForbes, sold his 36,000-square-foot French Palladian-style mansion in Beverly Hills for $34.5 million.

Leading lady and "Friends" star Aniston was involved in one of several 2012 deals in the $20-million range. She bought a Midcentury Modern-style house in Bel-Air from former Maguire Properties Chief Executive Robert F. Maguire III for $20.97 million. The restored 8,500-square-foot house sits on a 3-acre-plus promontory with unobstructed ocean and city views, a guesthouse, swimming pool and vineyards.

Unusual and awesome amenities

If one is good, two may just be better. Investor and pro soccer team owner Gabriel Brener put his Holmby Hills estate up for sale last year at $90 million. The 35,000-square-foot mansion comes with two safe rooms.

Donald Abbey, founder of a commercial real estate investment and management firm, made a splash in the San Gabriel Valley community of Bradbury asking $78.8 million for his estate. But what really distinguishes the property, which has more than 47,000 square feet of living space, are the temperature-controlled trout pond with two-story waterfall and subterranean firing range.

Texas Rangers third baseman Adrian Beltre sold his 4-acre-plus estate in Bradbury for $17.4 million — complete with batting cage.

A whimsical "Flintstones"-esque house owned by the late television personality Dick Clark came on the market in Malibu. Looking like "a page right out of history," as the "Flintstones" theme song says, the one-bedroom retreat and its 23 acres are priced at $3.5 million.

And what better Hollywood amenity than an early film vault? The former retreat of silent and talking movie star Lewis Stone, who appeared with Greta Garbo in multiple films, has a walk-in vault and is on the market in the Valley Glen area at $1.75 million.

POTUS slept here, here and here

In something of an election year hail to the chiefs, several presidential homes made the scene in Southern California.

Actress Jane Fonda and music producer Richard Perry sold a house in Hollywood Hills West that was built in 1942 for actor Ronald Reagan and his first wife, actress Jane Wyman. The traditional-style home went for $8.5 million.

A 30-acre equestrian property that was once part of ranch land owned by Ronald and Nancy Reagan when the former president was governor of California is for sale in Murrieta at $3.9 million. Another former Reagan home in Pacific Palisades is on the market at $4.999 million.

The desert retreat of former President Gerald Ford and Betty Ford sold in Rancho Mirage for $1.675 million.

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