Napster co-founder to invest in allergy research

SAN FRANCISCO — Napster co-founder Sean Parker missed most of his final year in high school and has ended up in the emergency room countless of times because of his deadly allergy to nuts, shellfish and other foods.

Now that the former Facebook president is the father of two small children who have a genetic basis to develop allergies, he says he wants to help find a lasting cure to allergies.

Parker announced Wednesday that he is donating $24 million over the next two years to establish an allergy research center at the Stanford University School of Medicine.

"We have been applying Band-Aids for decades by using antihistamines to treat symptoms instead of going after the root cause of allergies," Parker said.

The Sean N. Parker Center for Allergy Research will focus on understanding the dysfunctions of the immune system that result in allergic reactions and on finding the safest and best treatments for allergies through laboratory and data research, clinical trials and community outreach.

The Silicon Valley entrepreneur said he missed most of his senior year of high school because he was hospitalized with a bronchial infection due to severe allergies and asthma. Parker said his severe allergic reactions have sent him to the hospital 14 times in the last six years.

Parker, 35, said neither his 2-year-old girl nor his 2-week-old boy have allergies but he knows they could develop them.

"Now that I'm a father, I'm sympathetic to what my parents went through," he said. "It's terrifying for parents to see their child go through anaphylactic shock because of an allergic reaction."

The center will be led by Dr. Kary Nadeau, an immunology researcher who focuses on allergies on children and adults. Nadeau has developed an allergy treatment that involves giving patients micro-doses of the allergen and increasing the amount ingested — over months or years — to build tolerance overtime.

"The goal is to be able to achieve desensitization in a couple of weeks," Parker said.

23.14 | 0 komentar | Read More

Russians flock to stores to pre-empt price rises

MOSCOW — Russian consumers flocked to the stores Wednesday, frantically buying a range of big-ticket items to pre-empt the price rises kicked off by the staggering fall in the value of the ruble in recent days.

As the government considered ways to ease the selling pressure on the ruble, which has slid 15 percent in just two days and raised fears of a bank run, many Russians were buying cars and home appliances — in some cases in record numbers — before prices for these imported goods shoot higher.

The Swedish furniture giant IKEA already warned Russian consumers that its prices will rise Thursday, which resulted in weekend-like crowds at a Moscow store on a Wednesday afternoon.

Shops selling a broad range of items were reporting record sales — some have even suspended operations, unsure of how far down the ruble will sink. Apple, for one, has halted all online sales in Russia.

"This is a very dangerous situation, we are just a few days away from a full-blown run on the banks," Russia's leading business daily Vedomosti wrote in an editorial Wednesday. "If one does not calm down the currency market right now, the banking system will need robust emergency care."

Alyona Korsuntseva, a consumer in her 30s, says the current jitters surrounding the Russian economy reminded her of the 1998 Russian crisis when the ruble tumbled following the government's default on sovereign bonds.

"What's pressuring us is the fact that many people (back then) rushed to withdraw money from bank cards, accounts," she says. "We want to safeguard ourselves so that things wouldn't be as bad they were back then."

Consumers are buying durable goods because Russian stocks are too volatile as an investment and an overwhelming majority of Russians cannot afford to buy land or real estate.

The ruble has suffered catastrophic losses this week as traders fretted over the impact of low oil prices on the Russian economy, as well as the impact of Western sanctions imposed over Russia's involvement in Ukraine's crisis.

After posting fresh losses early Wednesday, the ruble was up and down all day before settling at 3 percent higher at 65 rubles at 4 p.m. Moscow time (1300 GMT).

The ruble even lost ground on Tuesday after a surprise move by Russia's Central Bank to raise its benchmark interest rate to 17 percent from 10.5 percent — a move aimed to make it more attractive for currency traders to hold onto their rubles.

One reason why the ruble advanced Wednesday is that Deputy Finance Minister Alexei Moiseyev was quoted by the Interfax news agency as saying the government is going to sell foreign currency "as much as necessary and as long as necessary." That, the hope is, would relieve the pressure on the ruble, particularly against the dollar.

Prime Minister Dmitry Medvedev hosted a meeting with the heads of Russia's largest exporters and pledged to implement a "package of measures" to stop the decline of the ruble.

Another option available to Russian authorities could be imposing capital controls, but Russia's Economic Development Minister Alexei Ulyukayev has denied that the government is considering doing so. However, he said the Central Bank rate hike came too late.

Russian officials, meanwhile, have sought to project a message of confidence on state television, dwelling on the advantages of ruble devaluation, such as a boost to domestic manufacturing.

Whatever happens with the ruble, the Russian economy is set to shrink next year by 0.8 percent even if oil prices stay above $80 per barrel. With oil prices now below $60, there are fears the Russian economy could contract by up to 5 percent.

The ruble could come under further pressure this week as President Barack Obama is expected to sign legislation authorizing new economic sanctions against Russia.

The German government's coordinator for relations with Russia, Gernot Erler, said the economic crisis in Russia was largely the result of the drop in oil prices, not the sanctions imposed by the West.

"It's an illusion to think that if the sanctions were to fall away tomorrow, the Russian economy would suddenly be all right again," Erler told rbb-Inforadio on Wednesday.

___

Vladimir Kondrashov in Moscow and Frank Jordans in Berlin contributed to this report from Berlin.

23.14 | 0 komentar | Read More

Fed pondering change in rate hike signals

WASHINGTON — The U.S. economy is finally doing better, and the Federal Reserve may be ready to acknowledge that fact.

In a statement it will issue Wednesday after two days of discussion, the Fed may no longer say it plans to keep a key interest rate near zero for a "considerable time." Dropping that language would be viewed as a signal that the Fed is moving closer to a hike.

Yet even if it drops the "considerable time" phrase, few envision an imminent rate hike. Most economists think the Fed will wait at least until June to raise short-term rates. It would be the first rate increase since June 2006. The Fed last cut rates on December 2008 when the central bank reduced its key short-term rate to a record low near zero in an effort to battle the worst economic downturn since the 1930s.

In addition to issuing its usual policy statement to close out its final meeting of the year, the Fed will update its economic forecast and Fed Chair Janet Yellen will hold a news conference. The meeting with reporters will give Yellen the chance to explain the Fed's policies in greater detail.

While many believe there will be a slight change in the Fed's guidance about the future course of interest rates, analysts say as long as inflation remain muted, the Fed may be content to leave rates at rock-bottom levels for as long as another year.

Low rates can encourage borrowing and spending, as well as fuel growth. But if left too low for too long, they can accelerate inflation.

"I think the odds are that the Fed will drop the 'considerable time' wording, but I think some people are making more out of that change than they should," said Diane Swonk, chief economist at Mesirow Financial.

Even if that wording is removed, economists expect the Fed will stress that the timing of a rate hike will be driven by the economy's performance, not by any preset timetable.

If the job market and the economy keep improving, a rate increase could come sooner. Yet if the economy slows unexpectedly — or if sinking oil prices keep inflation persistently below the Fed's 2 percent target, the first rate hike might be delayed.

The debate inside the Fed is pivoting on which of those forces — an improved economy or excessively low inflation — should outweigh the other. Complicating the Fed's decision is that other major central banks — in Europe, Japan and China, for example — are moving in the reverse direction to keep rates down to support slowing economies. When central banks move in opposite directions, they risk causing disruptions in the global flow of capital.

The minutes of the Fed's last two meetings showed that officials discussed changing the "considerable time" language. But some worried that doing so might be misread to mean the first rate increase would come soon. In the end, the phrasing was retained.

To soften the market impact, some analysts say "considerable time" may be replaced by language that says the Fed will be "patient" in deciding when to raise rates. In recent weeks, several Fed officials have used that word to describe how the central bank will proceed.

The word "patient" has history behind it. The last time the Fed moved from a prolonged period of low rates in 2004, it shifted from saying it would keep rates low for a "considerable period" to pledging to be "patient" in raising them. Five months after dropping "considerable period" in January 2004, the Fed approved a rate hike.

Vincent Reinhart, who was the Fed's top staff economist then, said it would be a wrong to assume that the lag time between a change in the statement's language and a rate increase would necessarily be the same this time.

The consensus view that the Fed will begin raising rates in June 2015 has held steady for months despite slight ups and downs in the economy's performance.

Recently, the data has been almost all positive with 321,000 jobs created in November, the most in nearly three years.

Mark Zandi, chief economist at Moody's Analytics, foresees economic growth of 3.3 percent next year — which would be the best showing since 2005 — up from 2.2 percent expected this year.

Brian Bethune, an economics professor at Tufts University, noted that while job gains have been solid, wage growth remains weak and inflation is slowing, reflecting the plunge in gas prices and a stronger dollar.

"With inflation falling, it just doesn't make any sense to argue that the Fed should accelerate the timing of its first rate hike," Bethune said.

23.14 | 0 komentar | Read More

Russians rush to stores to pre-empt price rises

MOSCOW — Russian consumers flocked to stores Wednesday, frantically buying a range of big-ticket items as they looked to pre-empt price rises following the staggering fall in the value of the ruble over recent days.

As the government looked at ways of easing the selling pressure on the ruble, which has slid 15 percent in just two days and raised fears of a bank run, many Russians were buying cars and home appliances — in some cases in record numbers — before prices for these imported goods shoot higher.

Swedish furniture giant IKEA, for one, has already put consumers on notice that its prices will rise Thursday, which resulted in weekend-like crowds on a Wednesday afternoon.

Shops selling a broad range of items are reporting record sales while some have had to suspend operations, unsure how far down the ruble will go. Apple, for one, has halted all online sales in Russia.

Alyona Korsuntseva, a woman in her 30s, says the current jitters surrounding the Russian economy reminded her of the 1998 Russian crisis when the ruble tumbled following the government's default on sovereign bonds.

"What's pressuring us is the fact that many people rushed to withdraw money from bank cards, accounts," she says. "We want to safeguard ourselves so that things wouldn't be as bad they were back then."

The ruble has suffered catastrophic losses this week as traders fretted over the impact of low oil prices on the Russian economy, as well as the impact of Western sanctions imposed over Russia's involvement in Ukraine's crisis.

It even lost ground on Tuesday after the surprise move by Russia's Central Bank to raise its benchmark interest rate to 17 percent from 10.5 percent. The hike was intended to make it more attractive for currency traders to hold onto their rubles.

After posting fresh losses early Wednesday, the ruble has been up and down all day before settling at 3 percent higher at 65 rubles at 4 p.m. Moscow time (1300 GMT).

One reason why the ruble has advanced is that Deputy Finance Minister Alexei Moiseyev was quoted by the Interfax news agency as saying that the government is going to sell foreign currency "as much as necessary and as long as necessary." That, the hope is, would relieve the pressure on the ruble, particularly against the dollar.

In light of the currency's slide, Prime Minister Dmitry Medvedev hosted a meeting with the heads of Russia's largest exporters and pledged to implement a "package of measures" to stop the decline of the ruble. He said the details of the measures to be pursued will be hammered out at the meeting and these will be only "market steps."

"This is a very dangerous situation, we are just a few days away from a full-blown run on the banks," Russia's leading business daily Vedomosti said in an editorial on Wednesday. "If one does not calm down the currency market right now, the banking system will need robust emergency care."

Another option available to the Russian authorities to stem the selling tide could be imposing capital controls, but Russia's Economic Development Minister Alexei Ulyukayev on Tuesday denied that the government was considering doing so. However, he said the rate hike came too late.

Whatever happens with the ruble over the coming days, the Russian economy is set to shrink next year by 0.8 percent if oil prices stay above $80 per barrel. With oil prices where they are, below $60, there are fears the Russian economy could contract by up to 5 percent.

The ruble could come under further pressure this week as President Barack Obama is expected to sign legislation authorizing new economic sanctions on Russia.

Russian officials sought to project a message of confidence on state television, dwelling on the advantages of ruble devaluation, such as a boost to domestic manufacturing.

The German government's coordinator for relations with Russia, Gernot Erler, said the economic crisis in Russia was largely the result of the drop in oil prices, not the sanctions imposed by the West.

"It's an illusion to think that if the sanctions were to fall away tomorrow, the Russian economy would suddenly be all right again," Erler told rbb-Inforadio on Wednesday.

___

Vladimir Kondrashov in Moscow and Frank Jordans in Berlin contributed to this report from Berlin.

23.14 | 0 komentar | Read More

US current account deficit rises to $100.3 billion

WASHINGTON — The U.S. current account trade deficit widened slightly in the July-September quarter, largely due to foreign institutions paying less in fines and penalties to the U.S. government.

The Commerce Department says the deficit in the current account rose to $100.3 billion in the third quarter, up 1.9 percent from the revised $98.4 billion deficit in the April-June period.

The increase occurred despite a drop in the trade deficit for goods and services, reflecting cheaper oil prices and a stronger dollar. The deficit widened because fines collected by the U.S. government fell to $27.8 billion from $40.1 billion in the previous quarter.

The current account is the broadest measure of trade, covering not only the flow of goods and services but also investment flows.

23.14 | 0 komentar | Read More

US current account deficit rises to $100.3 billion

WASHINGTON — The U.S. current account trade deficit widened slightly in the July-September quarter, largely due to foreign institutions paying less in fines and penalties to the U.S. government.

The Commerce Department said Wednesday that the deficit in the current account rose to $100.3 billion in the third quarter, up 1.9 percent from a revised $98.4 billion deficit in the April-June period.

The increase occurred despite a drop in the trade deficit for goods and services, reflecting cheaper oil prices and a stronger dollar.

The deficit widened because fines collected by the U.S. government from foreign institutions fell to $27.8 billion from $40.1 billion in the previous quarter, a 31 percent decrease. In the April-June period, the government had fined the French bank BNP Paribas $9 billion for violating sanctions against Iran, Sudan and Cuba.

The current account is the broadest measure of trade, covering not only the flow of goods and services but also investment flows. It faces downward pressure because the dollar has increased in value relative to other currencies and oil prices have fallen by almost 50 percent since June.

The average price of a barrel of oil has dropped below $56 from a summer high of $107. That reflects weakening global demand as Japan has tumbled into a recession, Europe staves off a slowdown, China's economy loses momentum and Russia copes with its collapsing currency. But U.S. consumers have largely been insulated from these pressures and benefited from less expensive oil.

At the same time, the global slowdown has caused more investors to crowd into the dollar as a relative safe haven. The dollar appreciated 7.1 percent against other major currencies during the July-September quarter.

The current account is still relatively low by historical standards. The quarterly deficits regularly topped $150 billion in the four years before the Great Recession of 2007-2009.

23.14 | 0 komentar | Read More

US consumer prices fell 0.3 percent in November

WASHINGTON — Plunging gasoline costs pulled U.S. consumer prices lower in November, muting inflation across the entire economy.

The Labor Department said Wednesday the inflation reading fell a seasonally-adjusted 0.3 percent last month, after prices were flat in October. Gas costs plummeted 10.5 percent in November, the steepest decline in nearly six years.

"If you're looking for signs of inflation, you will have to look elsewhere," said Jennifer Lee, an economist at BMO Capital Markets.

Core inflation, which excludes volatile energy and food prices, rose 0.1 percent in November. For the past 12 months, overall inflation has risen 1.3 percent while core inflation has increased 1.7 percent.

Both annual gains are well below the Federal Reserve's 2 percent inflation target. This gives Fed officials who end their policy meeting Wednesday afternoon significant leeway to keep a key interest rate at near zero, which helps infuse the economy with capital to boost economic growth and hiring.

Falling oil prices and a strong dollar, which lowers the price of foreign-made goods, have combined to curb inflation. Prices have barely budged, even though hiring has picked up and the unemployment rate has fallen to 5.8 percent.

The average price of a barrel of oil has dropped below $56 from a summer high of $107. That reflects less global demand as Japan has tumbled into a recession, Europe staves off a slowdown, China manages an economy with less momentum and Russia copes with its collapsing currency. But U.S. consumers have largely been insulated from these pressures and benefited from less expensive oil.

Average gas prices nationally have dropped to $2.53 a gallon from $2.89 a month ago and $3.23 a year ago. This suggests that inflation remained subdued in December and may remain modest in the coming months.

Cheaper gas frees up income to be spent elsewhere, often helping to support other sectors of the economy.

Consumer prices did rise last month for medical care, airline fares, alcohol, beef, ham and chicken. But they also slipped for clothing, household furnishings and autos.

The benefits of lower gas prices appear to have spilled over to consumer spending at the start of the holiday shopping season.

Retail sales rose a seasonally-adjusted 0.7 percent in November.

Spending on motor vehicles accelerated 1.7 percent, while purchases at clothiers, online retailers, electronics stores and department stores all expanded.

A prolonged rise in consumer spending should eventually push up core inflation.

"We still expect the stronger economy to push core inflation above 2 percent late next year," said Paul Dales, senior U.S. economist at Capital Economics.

23.14 | 0 komentar | Read More

Pampered pets that don duds move to the mainstream

LOS ANGELES — These clothing designers have to think about pattern, fabric and fit — as well as where to put the poo bags.

Creating on-trend outfits is a whole different animal for pet fashion designers, whose work is becoming mainstream as animal lovers look to further pamper their pets. For some owners, it's a statement; for others, it's a way to match man's best friend; and sometimes it's simply about keeping animals warm this winter. But it's clear the number of dressed-up dogs and cats jumps significantly once holiday photos need to be taken.

"We have gone from the kind of cute reindeer gear or ugly sweater to more functional clothing," said Lauren Darr, founder of the International Association of Pet Fashion Professionals in New York City. "Before it was for a cute picture, now it's more practical. It takes it to a different level, going from being a novelty to understanding how things can be used in everyday life."

Pet fashion got a leg up after American Eagle Outfitters received an outpouring from its April Fool's Day joke this year. To raise money and awareness for an animal welfare group, the popular retailer introduced a fake fashion line called American Beagle Outfitters. But the joke was on the Pittsburgh company.

"Our customers were very clear about their desire for this product to become a reality," company spokesman Michael Leedy said last month when welcoming the pet line for real. Its tiny puffy jackets, sweaters and hats sell for $12.95 to $39.95.

The move made strides for the pet clothing industry, insiders say.

"When a company like American Eagle starts getting into pet fashion, it really puts a spotlight on it and brings visibility to it," Darr said.

For some pet owners, clothing plays into a luxury lifestyle. Dog Fashion Spa in New York sells doggy and mommy bathrobes, a matching fad that comes as many spas and salons are building hers and "furs" facilities — one side to pamper the woman and the other to treat their dogs, CEO Elena Volnova said.

Pampering and style is one thing, but function is also important. Karine Ng, the owner and designer at Central Park Pups in New York City, has developed several step-in coats with hidden harnesses that help pets get dressed without the hassle. Dogs walk right into the coat, so they don't have to put their head through it.

Her pieces are among the many that feature a pouch or pocket to hold unused bags for scooping up pet poop.

Ng's "city chic" styles, which sell online and at boutiques for $60 to $65, aim to reduce aggravation for pets, but she warns: "Never make a dog wear clothing if it doesn't want to."

On the other hand, you might want to start dressing your cat now, Darr said. She predicted huge growth in feline fashions as retailers from 99-cent stores to high-scale boutiques carry more cat clothing.

"I am seeing more pieces that are tailored for cats. It's still a small proportion, but it is growing," Darr said.

The movement comes as more owners teach their cats to go for walks. Plus, "a lot of cats in colder climates have learned to rely on sweaters, coats and vests," Darr said.

Other trends she saw this year that she expects to grow in 2015 include clothing decorated with LED lights to make pets more visible at night, T-shirts for pets of sports fans and still more ugly sweaters.

___

Online:

— www.petfashionprofessionals.com

— www.dogfashionspa.com

— www.centralparkpups.com

— www.ae.com

23.14 | 0 komentar | Read More

US stocks open higher before Fed statement

NEW YORK — U.S. stocks opened higher Wednesday after a string of losses. Energy stocks led the gains despite the ongoing slump in oil prices.

KEEPING SCORE: The Standard & Poor's 500 index rose 12 points, or 0.7 percent, to 1,987 as of 10:01 a.m. Eastern. The Dow Jones industrial average gained 114 points, or 0.7 percent, to 17,183. The Nasdaq composite climbed 25 points, or 0.6 percent, to 4,572.

FED MEETING: Investors will be assessing the statement from the Federal Reserve's final policy meeting of the year on Wednesday and will be looking to see if U.S. policymakers drop a pledge to keep interest rates low for a "considerable time," as the U.S. economy improves. The Fed will release a statement at 2 p.m. Eastern time and will hold a press conference at 2:30 p.m.

RUSSIA FOCUS: Russia remained in focus on concerns about the impact of the recent slide in the ruble. The currency has lost more than 50 percent of its value this year. After posting fresh losses early Wednesday, the ruble recovered and was 11 percent higher at 61 rubles to the dollar.

The currency recovered some of its losses Wednesday after Russian authorities indicated that they would sell foreign currency to relieve the pressure on the ruble. The Russian currency has suffered in the wake of sliding oil prices and sanctions imposed over Russia's involvement in Ukraine's crisis.

EUROPE'S DAY: In Europe, Germany's DAX was 0.4 percent lower while the CAC-40 in France fell 0.3 percent. The FTSE 100 index of leading British shares fell 0.6 percent.

OIL SLUMP: U.S. crude declined 61 cents to $55.31 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, lost 76 cents to $59.23 a barrel in London.

BONDS AND CURRENCIES: U.S. government bond prices fell slightly. The yield on the 10-year Treasury note edged up to 2.08 percent from 2.06 percent late Tuesday. The euro was 0.4 percent lower at $1.2450 and the dollar fell 0.1 percent to 117.16 yen.

___

Pylas reported from London.

23.14 | 0 komentar | Read More

UK proposes rules for embryos made from 3 people

LONDON — New rules proposed in Britain would make it the first country to allow embryos to be made from the DNA of three people in order to prevent mothers from passing on potentially fatal genetic diseases to their babies.

In a statement issued on Wednesday, the department of health said it had taken "extensive advice" on the safety and efficacy of the proposed techniques from the scientific community.

"(This) will give women who carry severe mitochondrial disease the opportunity to have children without passing on devastating genetic disorders," Dr. Sally Davies, the U.K.'s chief medical officer, said in a statement.

Experts say that if approved by parliament, these new methods would likely be used in about a dozen British women every year who are known to have faulty mitochondria — the energy-producing structures outside a cell's nucleus. Defects in the mitochondria's genetic code can result in diseases such as muscular dystrophy, heart problems and mental retardation.

The techniques involve removing the nucleus DNA from the egg of a prospective mother and inserting it into a donor egg, where the nucleus DNA has been removed. That can be done either before or after fertilization.

The resulting embryo would end up with the nucleus DNA from its parents but the mitochondrial DNA from the donor. Scientists say the DNA from the donor egg amounts to less than 1 percent of the resulting embryo's genes. But the change will be passed onto future generations, a major genetic modification that many ethicists have been reluctant to endorse.

Critics say the new techniques are unnecessary and that women who have mitochondrial disorders could use other alternatives, such as egg donation, to have children.

"Medical researchers are crossing the crucial ethical line that will open the door to designer babies," said David King of Human Genetics Alert, a secular group that opposes many genetics and fertilization research.

British law currently forbids any genetic modification of embryos before being transferred into a woman.

Earlier this year, the U.S. Food and Administration held a meeting to discuss the techniques, and scientists warned it could take decades to determine if they're safe.

23.14 | 0 komentar | Read More