DealBook: Former Goldman Director Gupta to Stay Free Pending His Appeal

A former Goldman Sachs director, Rajat K. Gupta, may remain free on bail while he challenges his insider-trading conviction, a federal appeals court ruled on Tuesday.

In a surprise decision, the United States Court of Appeals for the Second Circuit in Manhattan ruled that Mr. Gupta would not have to report to prison until his appeal is heard, which could take a year. He had been set to start serving his two-year sentence on Jan. 8.

Mr. Gupta, 64, was found guilty in June of leaking Goldman’s boardroom secrets to his friend, the former hedge fund managerRaj Rajaratnam.

Tuesday’s ruling suggested that Mr. Gupta had convinced the judges that he had legitimate issues to argue on appeal. The same federal appeals court had denied a request by Mr. Rajaratnam to remain free on bail pending his appeal. Mr. Rajaratnam is serving an 11-year prison term.

Mr. Gupta’s lawyers are expected to make several arguments. The most significant issue on appeal could be the government’s use of the wiretaps in the trial.

Judge Jed S. Rakoff, the trial court judge, allowed the jury to hear incriminating taped conversations involving Mr. Rajaratnam and his traders. Those conversations suggested Mr. Rajaratnam had a source at Goldman.

“I heard yesterday from somebody who’s on the board of Goldman Sachs that they are going to lose $2 per share,” Mr. Rajaratnam told a colleague on a wiretapped call in October 2008.

Multimedia: Insider Trading

Without the wiretaps, prosecutors would have had to rely on circumstantial evidence — telephone bills and trading records — to prove their case.

Mr. Gupta’s lawyers had argued that because the conversations were between Mr. Rajaratnam and his employees, Judge Rakoff should declare them inadmissible hearsay evidence, meaning that they were too unreliable to be used against Mr. Gupta.

Another issue that Mr. Gupta’s lawyers are expected to raise is that Judge Rakoff erred in limiting testimony by Mr. Gupta’s daughter about her father’s deteriorating relationship with Mr. Rajaratnam.

Mr. Gupta, who lives in Westport, Conn., has been free on $10 million bail since his arrest in October 2011. In addition to a team of lawyers from Kramer Levin Naftalis & Frankel that had represented him, Mr. Gupta hired Seth P. Waxman, an experienced appellate lawyer, to help with his appeal.
Mr. Waxman, a partner at WilmerHale, is a former United States solicitor general who has argued more than 50 cases before the United States Supreme Court.

The court is expected to hear Mr. Gupta’s appeal in the spring.

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U.S. Warns Syria Against Using Chemical Weapons


Narciso Contreras/Associated Press


 A kitchen in a home in Aleppo, Syria showed signs of heavy fighting Sunday.







WASHINGTON — President Obama warned Syria on Monday not to use chemical weapons against its own people, vowing to hold accountable anyone who did, even as American intelligence officials picked up signs that such arms might be deployed in the fighting there.




The White House said it had an “increased concern” that the government of President Bashar al-Assad was preparing to use such weapons, effectively confirming earlier reports of activity at chemical weapons sites. The administration said it would take action if they were used, suggesting even the possibility of military force.


“Today I want to make it absolutely clear to Assad and those under his command: The world is watching,” Mr. Obama said in a speech at the National Defense University in Washington. “The use of chemical weapons is and would be totally unacceptable. If you make the tragic mistake of using these weapons, there will be consequences and you will be held accountable.”


Neither the president nor his aides would specify how it would hold Syrians accountable, but the White House confirmed that contingency plans had been drawn for direct action. The president’s statement amplified similar warnings issued by Secretary of State Hillary Rodham Clinton earlier in the day in Prague, the capital of the Czech Republic, which represents the interests of the United States in Damascus now that the American Embassy there has been closed.


“This is a red line for the United States,” Mrs. Clinton said. “I am not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say, we are certainly planning to take action if that eventuality were to occur.”


The sharpening language came as NATO was preparing to buttress its member Turkey against a potential attack from Syria. A plan expected to be endorsed by the alliance’s foreign ministers during two-days of meetings that begin Tuesday in Brussels calls for deploying American, German and Dutch Patriot missile-defense batteries under the operational control of the NATO military command, Western officials said Monday.


Such a move would be the most direct action in the Syrian conflict by the alliance, which has remained cautious about intervention there. But for months, Turkey has expressed concerns about the potential of missile attacks from Syria as relations between the two countries have worsened, and last month Ankara asked for Patriot batteries.


As the United States and its allies tried to forestall the conflict from escalating, the Syrian Foreign Ministry said the government “would not use chemical weapons, if it had them, against its own people under any circumstances.” The statement was reported on Syrian state television and on the Lebanese channel LBC.


Mr. Obama has called for Mr. Assad to step down but has shied away from taking direct action sought by Syrian rebels. With the election over, advisers are considering a more robust response, including possibly providing arms to the rebels and recognizing the opposition as the legitimate representative of the Syrian people.


But Mr. Obama avoided any mention of such actions in his speech. “We will work to support the legitimate aspirations of the Syrian people, engaging with the opposition, providing them with the humanitarian aid and working for a transition to a Syria that’s free of the Assad regime,” he said.


Jay Carney, the president’s press secretary, hinted at possible military action in response to any use of chemical weapons but declined to specify options. “We think it is important to prepare for all scenarios,” he said. “Contingency planning is the responsible thing to do.”


Mrs. Clinton flew from Prague to Brussels for the NATO meeting. A senior NATO official said the alliance would declare its support for Turkey’s request for help and welcome the intention of three allied nations to deploy Patriot missile batteries there. It would then be up to the United States, Germany and the Netherlands to decide how many batteries to deploy and for how long.


Surveys are being conducted of 10 potential sites, mainly in southeastern Turkey, but a senior American official traveling with Mrs. Clinton said it would probably take several weeks to deploy the batteries. Once deployed, they would be under the operational control of NATO’s top military commander, Adm. James. G. Stavridis.


The pending move has prompted speculation that it might be an indirect way of extending protection to forces opposing Mr. Assad in northern Syria by targeting Syrian warplanes operating there. But NATO and American officials were adamant that was not the purpose.


“There is no safe haven,” the American official with Mrs. Clinton said. “There is no de facto cross-border aspect to this.”


Instead, officials said the idea was to discourage Syria from threatening Turkey for supporting Syrian insurgents — and to discourage Turkey from feeling pressured to intervene to head off attacks against it. The Turkish military issued a statement Monday calling the deployment “a measure entirely aimed at defense.”


Peter Baker reported from Washington, and Michael R. Gordon from Brussels.



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Heisman finalists: Manziel, Te'o and Klein

NEW YORK (AP) — Johnny Manziel and Manti Te'o are in position to make Heisman Trophy history.

Manziel, the redshirt freshman quarterback from Texas A&M, and Te'o, Notre Dame's star linebacker, along with Kansas State quarterback Collin Klein, were invited Monday to attend the Heisman presentation ceremony.

Manziel is the favorite to win college football's most famous player of the year award on Saturday night in Manhattan. He would be the first freshman to win the Heisman and the first Texas A&M player since halfback John David Crow won the school's only Heisman in 1957.

"I'm overwhelmed by this tremendous honor of representing Texas A&M, the 12th Man and all my teammates in New York," Manziel said in a statement. "This is a dream come true for me, and I know it's a credit to all my coaches and teammates. I definitely wouldn't be a Heisman finalist without my teammates and coaches."

Three sophomores have won the award (Tim Tebow in 2007, Sam Bradford in 2008 and Mark Ingram in 2009), but the best a first-year player has ever done is second.

Adrian Peterson of Oklahoma finished second to Southern California quarterback Matt Leinart in 2004. Peterson was a true freshman. As a redshirt freshman, Manziel attended A&M last year and practiced with the team but did not play.

Michael Vick of Virginia Tech came in third in 1999 as a redshirt freshman and Herschel Walker was a true freshman for Georgia in 1980 when he finished third in the Heisman balloting.

Nicknamed Johnny Football, Manziel quickly became a national sensation this season, putting up huge numbers in first-year Texas A&M coach Kevin Sumlin's spread offense. He led the 10th-ranked Aggies to a 10-2 record in their first season in the Southeastern Conference.

With a knack for improvisation, Manziel racked up an SEC-record 4,600 yards of total offense, including 1,181 rushing to lead the conference. The 6-foot-1, 200-pound Manziel zoomed to the front of the Heisman race on Nov. 10, when he passed for 253 yards and two touchdowns and ran for 92 yards as the Aggies upset then-No. 1 Alabama 29-24 in Tuscaloosa.

Manziel and Texas A&M will play No. 12 Oklahoma in the Cotton Bowl.

Te'o is trying to become the first defense-only player to win the Heisman. The Fighting Irish have seven Heisman winners, tied for the most with Ohio State and Southern California, but none since Tim Brown in 1987.

Te'o became the face of the No. 1 team in the country and leader of a defense that has been the toughest to score upon in the nation. The senior intercepted seven passes, second-most in the country and tops for a linebacker. He also led the Fighting Irish with 103 tackles, and earlier Monday won the Butkus Award as country's best linebacker.

Te'o and the Irish face No. 2 Alabama in the BCS championship game on Jan. 7 in Miami.

Klein would be the first player from Kansas State to win the Heisman.

"I'm just honored with this opportunity that the Lord has provided me here at K-State," Klein said in a statement. "I'm so proud to represent K-State in this because I feel like my road is very synonymous and in line with the K-State way. It has been a process, it has been a journey. There have been a lot of ups and downs, as well as a lot of hard times and growing pains through it. I'm just very proud to represent the K-State family and our heart and spirit in this environment."

He seemed to be the front-runner for several weeks until Manziel's late push. When Klein threw three interceptions in the Wildcats' late-season loss to Baylor, Manziel moved to the front of the race.

Klein is a multitalented quarterback like Manziel, but with a different approach. The 6-5, 226-pound senior is a bullish runner who scored 22 touchdowns and threw for 15 more, while leading the seventh-ranked Wildcats (11-1) to the Big 12 title. Earlier in the day, Klein won the Johnny Unitas Award given to the top upperclassman quarterback in the nation.

Klein will finish his Kansas State career against No. 5 Oregon in the Fiesta Bowl.

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Global Update: GlaxoSmithKline Tops Access to Medicines Index


Sang Tan/Associated Press







GlaxoSmithKline hung on to its perennial top spot in the new Access to Medicines Index released last week, but its competitors are closing in.


Every two years, the index ranks the world’s top 20 pharmaceutical companies based on how readily they get medicines they hold patents on to the world’s poor, how much research they do on tropical diseases, how ethically they conduct clinical trials in poor countries, and similar issues.


Johnson & Johnson shot up to second place, while AstraZeneca fell to 16th from 7th. AstraZeneca has had major management shake-ups. It did not do less, but the industry is improving so rapidly that others outscored it, the report said.


The index was greeted with skepticism by some drugmakers when it was introduced in 2008. But now 19 of the 20 companies have a board member or subcommittee tracking how well they do at what the index measures, said David Sampson, the chief author.


The one exception was a Japanese company. As before, Japanese drugmakers ranked at or near the index’s bottom, and European companies clustered near the top. Generic companies — most of them Indian — that export to poor countries are ranked separately.


Johnson & Johnson moved up because it created an access team, disclosed more and bought Crucell, a vaccine company.


The foundation that creates the index now has enough money to continue for five more years, said its founder, Wim Leereveld, a former pharmaceutical executive.


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DealBook Column: For Buffett, the Long Run Still Trumps the Quick Return

“If somebody bought Berkshire Hathaway in 1965 and they held it, they made a great investment — and their broker would have starved to death.”

Warren E. Buffett was sitting across from me over lunch at a private club in Midtown Manhattan last week, lamenting the current state of Wall Street, which promotes a trading culture over an investing culture and offers incentives for brokers and traders to generate fees and fast profits.

“The emphasis on trading has increased. Just look at the turnover in all of the stocks,” he said, adding with a smile: “Sales people have forever gotten paid by selling people something. Generally, you pay a doctor for how often he gets you to change prescriptions.”

Mr. Buffett, 82, is famous for investing in companies that he sees as solid operations and essential to the economy, like railroads, utilities and financial companies, and holds his stakes for the long run. The argument that the markets are better off today because of the enormous amount of liquidity in the stock market, a function of quick flipping and electronic trading, is a fallacy, he said.

“You can’t buy 10 percent of the farmland in Nebraska in three years if you set out to do it,” he said. Yet, he pointed out, he was able to buy the equivalent of 10 percent of I.B.M. in six to eight months as a result of the market’s liquidity. “The idea that people look at their holdings in such a way that that kind of volume exists means that to a great extent, it’s a casino game,” he said. Of course, unlike many investors, he plans to hold his stake in I.B.M. for years.

Mr. Buffett was in a reminiscing mood about a bygone era, in part because he was in New York to make the rounds on television to discuss a new book chronicling his 61-year career, which began in 1951 at Buffett-Falk & Company in Omaha. (After lunch, he was going to visit “The Daily Show With Jon Stewart.”)

The book, “Tap Dancing to Work,” by a longtime journalist and good friend of his, Carol Loomis of Fortune magazine, is a compendium of articles that she and others wrote in Fortune that creates a series of narratives spanning the arc of his career.

Ms. Loomis, who first met Mr. Buffett in 1967 — and whose long career is a story unto itself — also came to our lunch. Ms. Loomis may know more about Mr. Buffett than he knows about himself. (“There’s nothing here you’re going to like,” she said, after surveying the various pies when the dessert cart came around. She was right: he took a quick look and asked if they served ice cream. They did.)

As we talked about the “good old days” — he spoke of some of his early friends who were successful hedge fund investors, like Julian Robertson, who founded Tiger Management — it became clear that he was less enamored of the investor class of the next generation.

When I asked, for example, if there were any private equity investors that he admired, he flatly replied: “No.”

When I asked if he followed any hedge fund managers, he struggled to name any, before saying that he liked Seth Klarman, a low-key value investor who runs the Baupost Group, based in Boston.

“They’re not as good as the old ones generally. The field has gotten swamped, so there’s so much money playing and people have been able to raise money by just saying ‘hedge fund,’” he said. “That was not the case earlier on; you really had to have some performance for some time before people would put money with you. It’s a marketing thing.”

For a moment, he paused, and then posited that if he started a hedge fund today, “I’d probably grow faster, because a record now would attract money a lot faster,” speculating that his record of returns would attract billions of dollars from pension funds and others. But he then acknowledged a truism of investing that he knows all too well, as the manager of an enterprise that is now worth some $220 billion: “Then money starts getting self-defeating at a point, too.”

Until 1969, Mr. Buffett operated a private partnership that was akin in some ways to a modern hedge fund, except the fee structure was decidedly different. Instead of charging “2 and 20” — a 2 percent management fee and 20 percent of profits — Mr. Buffett’s investors “keep all of the annual gains up to 6 percent; above that level Buffett takes a one-quarter cut,” Ms. Loomis wrote. However, in 1969, he announced he would shutter his partnership. “This is a market I don’t understand,” he said, according to Ms. Loomis.

He believed that the stock market of 1968 had become wildly overpriced — and he was right. By the end of 1974, the market took a tumble. Instead, he remained the chief executive of Berkshire Hathaway, one of his early investments.

“If you want to make a lot of money and you own a hedge fund or a private equity fund, there’s nothing like 2 and 20 and a lot of leverage,” he said over a lunch of Cobb salad. “If I kept my partnership and owned Berkshire through that, I would have made even more money.”

Mr. Buffett says he now considered himself as much a business manager as an investor. “The main thing I’m doing is trying to build a business, and now we built one. Investing is part of it but it is not the main thing.”

Today, Mr. Buffett is particularly circumspect about the investment strategies that hedge funds employ, like shorting, or betting against, a company’s stock. He used to short companies as part of a hedging strategy when he ran his partnership, but now he says that he and Charlie Munger, his longtime friend and vice chairman of Berkshire, see it as too hard.

“Charlie and I both have talked about it, we probably had a hundred ideas of things that would be good short sales. Probably 95 percent of them at least turned out to be, and I don’t think we would have made a dime out of it if we had been engaged in the activity. It’s too difficult,” he explained, suggesting that the timing of short investments is crucial. “The whole thing about ‘longs’ is, if you know you’re right, you can just keep buying, and the lower it goes, the better you like it, and you can’t do that with shorts.”

One of his big worries these days is about what’s going to happen to all the pension money that is being invested in the markets, often with little success, in part because investors are constantly buying and selling securities on the advice of brokers and advisers, rather than holding them for the long term. “Most institutional investors, whoever is in charge — whether it’s the college treasurer or the trustees of the pension fund of some state — they’re buying what they’re sold.”

Most pension funds probably didn’t buy Berkshire in 1965 and hold it, but if they had, they would have far fewer problems today. At the end of her book, Ms. Loomis notes that when she mentioned Mr. Buffett’s name for the first time in Fortune magazine in 1966 — accidentally spelling Buffett with only one “t” — Berkshire was trading at $22 a share. Today it is almost $133,000 a share.

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Young Leaders Cast a Wider Net for Immigration Reform


Dan Gill for The New York Times


Delegates on Saturday reflected in silence during the United We Dream congress for young immigrants in Kansas City, Mo.  More Photos »







KANSAS CITY, Mo. — After a boisterous three-day congress here, more than 600 leaders of a national movement of young immigrants living in the country without legal papers voted to expand beyond their past demands for citizenship for young people, and to mobilize in support of a bill to legalize 11 million illegal immigrants in the United States.




The leaders of the United We Dream network, the largest organization of youths here illegally, decided to push President Obama and Congress next year for legislation to open a path to citizenship for them and their families. The move will increase pressure on Mr. Obama and lawmakers to pass a comprehensive overhaul, rather than taking on the debate over immigration in smaller pieces to try to gain more support among Republicans.


The network’s platform calling for an “inclusive pathway to citizenship,” which the leaders adopted unanimously in a vote on Sunday morning, is likely to have a large influence on the debate Mr. Obama said he planned to kick off soon after his inauguration in January. The young people, who call themselves Dreamers, generally attract more sympathy from American voters than other immigrants here illegally, because most were brought to the country as children and many became activists after their illegal status thwarted their plans for college.


They take their name from the Dream Act, a bill that would create a pathway to citizenship for young people, which lawmakers on both sides of the aisle view as having a better chance than broader legalization measures. This year several Republicans, including Senator Marco Rubio of Florida, worked on alternative proposals that could attract support from their party. An estimated 1.7 million young immigrants would be eligible for legal status under the Dream Act.


But the youths opted to fight for broader gains, concluding that events were working in their favor after the Nov. 6 election, when Latino voters turned out in large numbers, overwhelmingly in favor of Mr. Obama.


“We have an unprecedented opportunity to engage our parents, our cousins, our abuelitos in this fight,” said Cristina Jimenez, a leader of the United We Dream organization, using the Spanish word for grandparents.


Although most of the young people who attended the conference do not have legal papers, it was a sign of their new confidence that the network held its congress in the convention center downtown, in a conservative state where most voters oppose amnesty for illegal immigrants.


In June, Mr. Obama announced two-year reprieves from deportation and work permits for hundreds of thousands of young immigrants, an initiative that they saw as a victory for their protests over the past two years. Some participants here already had their reprieve documents.


For many young people, getting here was still a challenge. Some who came from California said they had taken the risk of flying for the first time, passing security with state identity documents. Others came by car from places like Florida, New York and Texas, driven by the few among them who have valid licenses.


Their decision to push for legal status for their families was intensely emotional. When they were asked at a plenary session how many had been separated by deportation from a parent or other close family member, hundreds of hands went up. They were critical of Mr. Obama for deporting more than 1.4 million people during his first term.


“When Obama is deporting all these people, separating all of our families, I’m sick and tired of that,” said Regem Corpuz, a 19-year-old student at the University of California, Los Angeles, who was born in the Philippines.


“Our families’ dreams were to get a better future,” said Ulises Vasquez of Sonoma County, Calif., “but our future is with our families together.”


On Sunday, six immigrant parents, also here illegally, joined a “coming out” ceremony where they spoke in public for the first time, as many youths have done in recent protests.


One father, Juan Jose Zorrilla, 45, who is from Mexico, recounted how he had entered the United States several times by swimming across the Rio Grande. “For parents, there is no sacrifice so large that we won’t make it for our children,” Mr. Zorrilla said. A mass of youths jumped up from their chairs to embrace Mr. Zorrilla and the other parents.


Much of the debate centered on how the movement would navigate hard realities in Washington. Opposition to legalization remains strong among Republicans, who control the House.


Network leaders said the election results, in which Mitt Romney won only 27 percent of the Latino vote, give them new influence with both parties, but particularly with Republicans.


“The Republican Party alienated Latino voters in ways they hadn’t done before,” said Lorella Praeli, a leader of the United We Dream organization. “Our leverage is that our community is growing,” Ms. Praeli said. She suggested that young immigrants ask Republicans: “Do you want your party to see the inside of the White House again?”


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Euro zone crisis drags down European ad spending: report












LONDON (Reuters) – The euro zone crisis has left Western Europe the only world region to see a fall in advertising spending this year, market research group ZenithOptimedia said.


The forecasting group said advertising expenditure in Western Europe fell 2.2 percent to $ 106.8 billion this year compared with an average increase of 3.3 percent worldwide.












North American ad spending rose 4.1 percent to $ 171.9 billion and Asia’s expenditure was up 6.1 percent to $ 140.1 billion this year.


“Developing markets, social media and online video are all growing rapidly, supporting continued expansion in global ad expenditure despite stagnation in the eurozone,” said Steve King, global chief executive of ZenithOptimedia Group.


The company, part of advertising agency Publicis, also said European ad spending would be flat next year before growing by about 2 percent in 2014 and 2015.


This leaves Europe lagging faster-growing regions such North America, which will grow by 3.5 percent next year, as well as Asia (5.5 percent) and Latin America (10 percent).


“The euro zone crisis is dragging down economic growth at the moment,” ZenithOptimedia said on Monday.


“Because the eurozone is in recession, its imports from other countries are slowing down or shrinking, and the risk of eurozone collapse adds to global uncertainty, leading companies to hoard cash instead of investing in growth,” the firm said in an emailed statement.


Ad spending generally tracks economic growth, so recessions tend to hit the shares of advertising agencies, including market leaders WPP, Omnicom, Interpublic Group and Publicis.


ZenithOptimedia said global ad expenditure would rise 4.1 percent next year to reach $ 518 billion, driven largely by faster growth in the developing markets.


(Editing by Helen Massy-Beresford)


Internet News Headlines – Yahoo! News


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Notre Dame vs. Alabama: Star power, power football

NEW YORK (AP) — Notre Dame and Alabama will play in the BCS national championship game on Jan. 7 in Miami.

The final Bowl Championship Series standings were revealed Sunday night, and to no one's surprise, the Fighting Irish were first and Alabama was second.

Alabama is shooting for its second straight national title and third in four seasons.

Notre Dame is in the BCS championship game for the first time, looking for its first national championship since 1988.

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Follow Ralph D. Russo at www.Twitter.com/ralphdrussoap

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Unboxed: Stand-Up Desks Gaining Favor in the Workplace





THE health studies that conclude that people should sit less, and get up and move around more, have always struck me as fitting into the “well, duh” category.




But a closer look at the accumulating research on sitting reveals something more intriguing, and disturbing: the health hazards of sitting for long stretches are significant even for people who are quite active when they’re not sitting down. That point was reiterated recently in two studies, published in The British Journal of Sports Medicine and in Diabetologia, a journal of the European Association for the Study of Diabetes.


Suppose you stick to a five-times-a-week gym regimen, as I do, and have put in a lifetime of hard cardio exercise, and have a resting heart rate that’s a significant fraction below the norm. That doesn’t inoculate you, apparently, from the perils of sitting.


The research comes more from observing the health results of people’s behavior than from discovering the biological and genetic triggers that may be associated with extended sitting. Still, scientists have determined that after an hour or more of sitting, the production of enzymes that burn fat in the body declines by as much as 90 percent. Extended sitting, they add, slows the body’s metabolism of glucose and lowers the levels of good (HDL) cholesterol in the blood. Those are risk factors toward developing heart disease and Type 2 diabetes.


“The science is still evolving, but we believe that sitting is harmful in itself,” says Dr. Toni Yancey, a professor of health services at the University of California, Los Angeles.


Yet many of us still spend long hours each day sitting in front of a computer.


The good news is that when creative capitalism is working as it should, problems open the door to opportunity. New knowledge spreads, attitudes shift, consumer demand emerges and companies and entrepreneurs develop new products. That process is under way, addressing what might be called the sitting crisis. The results have been workstations that allow modern information workers to stand, even walk, while toiling at a keyboard.


Dr. Yancey goes further. She has a treadmill desk in the office and works on her recumbent bike at home.


If there is a movement toward ergonomic diversity and upright work in the information age, it will also be a return to the past. Today, the diligent worker tends to be defined as a person who puts in long hours crouched in front of a screen. But in the 19th and early 20th centuries, office workers, like clerks, accountants and managers, mostly stood. Sitting was slacking. And if you stand at work today, you join a distinguished lineage — Leonardo da Vinci, Ben Franklin, Winston Churchill, Vladimir Nabokov and, according to a recent profile in The New York Times, Philip Roth.


DR. JAMES A. LEVINE of the Mayo Clinic is a leading researcher in the field of inactivity studies. When he began his research 15 years ago, he says, it was seen as a novelty.


“But it’s totally mainstream now,” he says. “There’s been an explosion of research in this area, because the health care cost implications are so enormous.”


Steelcase, the big maker of office furniture, has seen a similar trend in the emerging marketplace for adjustable workstations, which allow workers to sit or stand during the day, and for workstations with a treadmill underneath for walking. (Its treadmill model was inspired by Dr. Levine, who built his own and shared his research with Steelcase.)


The company offered its first models of height-adjustable desks in 2004. In the last five years, sales of its lines of adjustable desks and the treadmill desk have surged fivefold, to more than $40 million. Its models for stand-up work range from about $1,600 to more than $4,000 for a desk that includes an actual treadmill. Corporate customers include Chevron, Intel, Allstate, Boeing, Apple and Google.


“It started out very small, but it’s not a niche market anymore,” says Allan Smith, vice president for product marketing at Steelcase.


The Steelcase offerings are the Mercedes-Benzes and Cadillacs of upright workstations, but there are plenty of Chevys as well, especially from small, entrepreneurial companies.


In 2009, Daniel Sharkey was laid off as a plant manager of a tool-and-die factory, after nearly 30 years with the company. A garage tinkerer, Mr. Sharkey had designed his own adjustable desk for standing. On a whim, he called it the kangaroo desk, because “it holds things, and goes up and down.” He says that when he lost his job, his wife, Kathy, told him, “People think that kangaroo thing is pretty neat.”


Today, Mr. Sharkey’s company, Ergo Desktop, employs 16 people at its 8,000-square-foot assembly factory in Celina, Ohio. Sales of its several models, priced from $260 to $600, have quadrupled in the last year, and it now ships tens of thousands of workstations a year.


Steve Bordley of Scottsdale, Ariz., also designed a solution for himself that became a full-time business. After a leg injury left him unable to run, he gained weight. So he fixed up a desktop that could be mounted on a treadmill he already owned. He walked slowly on the treadmill while making phone calls and working on a computer. In six weeks, Mr. Bordley says, he lost 25 pounds and his nagging back pain vanished.


He quit the commercial real estate business and founded TrekDesk in 2007. He began shipping his desk the next year. (The treadmill must be supplied by the user.) Sales have grown tenfold from 2008, with several thousand of the desks, priced at $479, now sold annually.


“It’s gone from being treated as a laughingstock to a product that many people find genuinely interesting,” Mr. Bordley says.


There is also a growing collection of do-it-yourself solutions for stand-up work. Many are posted on Web sites like howtogeek.com, and freely shared like recipes. For example, Colin Nederkoorn, chief executive of an e-mail marketing start-up, Customer.io, has posted one such design on his blog. Such setups can cost as little as $30 or even less, if cobbled together with available materials.


UPRIGHT workstations were hailed recently by no less a trend spotter of modern work habits and gadgetry than Wired magazine. In its October issue, it chose “Get a Standing Desk” as one of its “18 Data-Driven Ways to Be Happier, Healthier and Even a Little Smarter.”


The magazine has kept tabs on the evolving standing-desk research and marketplace, and several staff members have become converts themselves in the last few months.


“And we’re all universally happy about it,” Thomas Goetz, Wired’s executive editor, wrote in an e-mail — sent from his new standing desk.


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TV Networks Say DVRs and Weak Shows Explain Low Ratings





If you ask several of the top programmers in network television what is going wrong with their ratings this season, they offer a litany of answers: jarring schedule disruptions from debates, election night and Hurricane Sandy, for instance, as well as the ever-increasing defections toward delayed viewing and away from the nightly schedules that have defined network prime time since the days of radio.




The numbers tell the tale. With seven days of delayed viewing factored in, ABC is down 7 percent in the audience preferred by most advertisers, viewers between the ages of 18 and 49; CBS is down 18 percent; and Fox Broadcasting is down an eye-popping 26 percent. NBC is the only network bucking the trend, with its audience up 23 percent in that category.


“We are definitely in a transition period,” said Paul Lee, president of ABC’s entertainment group, citing the heavy shift toward reliance on DVRs and video on demand to create personalized viewing schedules.


Another factor also seems to have been at work this fall: disappointing new shows.


“The point the networks make is that the DVR is revolutionizing viewing,” said Brad Adgate, director of research for Horizon Media, a media buying company. “But that is masking the fact that the new shows they put on this fall just aren’t that good. There are better shows on cable.”


The lack of excitement this fall came in stark contrast to a year ago, when a host of new series broke through as hits: “Two Broke Girls” on CBS, “New Girl” on Fox, “Once Upon a Time” on ABC and many others. ABC had an especially fruitful year, bringing back six new series for second seasons.


This season, only one new series, the NBC drama “Revolution,” has cracked the top 30 programs among those 18-to-49 viewers.


Mr. Lee noted that “there is always an ebb and flow” to seasons, with one marked by strong newcomers followed by another filled with misses, and midyear shows that often reverse the fall trend.


Kevin Reilly, chairman of entertainment for Fox, also stressed that the history of television has been marked by what he called “flat years” when the new selections largely didn’t pan out. “I think this is a flat year,” he said.


Another top network executive, Kelly Kahl, the chief scheduler for CBS, suggested that the season may be showing signs of settling down after the disruptions of the fall, citing stabilized performances for CBS’s shows in recent weeks. But he, too, stressed that networks have to recalculate the meaning of success with “people adjusting to new ways of watching television.”


He pointed to CBS’s growing success in adding viewers from DVR recording, with no fewer than eight CBS shows adding more than three million viewers after a week of delayed viewing is counted. (Only one of those, the drama “Elementary,” is a new show.)


A few new shows gained favorable reviews but failed to attract adoring audiences. ABC’s “Nashville,” despite strong critical backing, has struggled to build wide audiences, winning support among young women but not with older viewers — perhaps, Mr. Lee said, because older viewers “have not gotten past the barrier of country music.”


A Fox comedy, “The Mindy Project,” won critical praise, but has ratings that, in most recent years, would have doomed it in two weeks. But it at least has a core audience of young women watching, and as with “Nashville,” in this season’s environment, that has been enough for survival.


“Usually you are able to say the show was sampled and rejected,” Mr. Reilly said. “Almost none of these new shows were even sampled.”


The need to find some way to carve out space on viewers’ recording machines has been an added factor preoccupying the programmers’ minds. “There is a real pressure to make sure this is appointment television,” Mr. Lee said, “television that has a hook.”


Robert Greenblatt, the top entertainment executive at NBC, reinforced that point. “The bigger the hook the better,” he said.


But Mr. Lee said this approach could be contradictory. “On the one hand,” he said, “you need it to have the fierce urgency of now, so you want to watch it live. But on the other hand, you want it to be attractive enough for people to want to put it on their DVRs.”


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