Stocks sink after Republicans cancel budget vote












Stocks are closing sharply lower after House Republicans called off a vote on tax rates.

That left federal budget talks in disarray 10 days before sweeping tax increases and government spending cuts are set to take effect.

The Dow Jones industrial average lost 120 points to close at 13,191 Friday. It had been down as much as 189.

The Standard & Poor's 500 index fell 13 points to 1,430. The Nasdaq composite index fell 29 to 3,021.

The House bill would have raised taxes on Americans making at least $1 million per year and locked in decade-old tax cuts for Americans making less.

Two stocks fell for every one that rose on the New York Stock Exchange. Volume was 4.7 billion shares, higher than the recent average.

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Boehner rejects Democrats' push for immediate vote on gun bill









WASHINGTON -- House Speaker John A. Boehner rejected calls from Democrats to schedule a vote on new gun restrictions before the end of the year, saying he wants to wait for recommendations from a newly formed White House task force before committing to a legislative response to the mass shooting at a Connecticut school.

“When the vice president's recommendations come forward, we'll certainly take them into consideration,’’ Boehner (R-Ohio) said Thursday in his first public comments on calls for new gun legislation since the slaying of 20 students and six adults at Sandy Hook Elementary School. “But at this point I think our hearts and souls ought to be to think about those victims in this horrible tragedy.”


President Obama on Wednesday said he had asked Vice President Joe Biden to lead a task force to come up with initiatives to stem gun violence by the end of next month. House Democratic Leader Nancy Pelosi of San Francisco and fellow Democrats have pressed for an immediate vote on a long-stalled bill that would ban ammunition magazines containing more than 10 rounds.





Obama has outlined a slightly slower pace for action, urging Congress to hold a vote “in a timely manner” in the new year.


Both Obama and Democrats on Capitol Hill say they are trying to seize on what appears to be a burst of momentum behind gun legislation in the wake of the Newtown, Conn., tragedy. Similar efforts initiated after other high-profile shootings faltered after national attention veered elsewhere.


Biden held the first meeting of the task force Thursday, gathering several cabinet members and White House officials with a group of local law enforcement leaders. In remarks before the meeting, the vice president noted his work on the 1994 crime bill, which banned the sale of some assault weapons, and said he would again be working closely with police groups to craft proposals.


“What I think the public has learned about you is you have a much more holistic view of how to deal with violence on our streets and in our country that you’re ever given credit for,” Biden told the law enforcement officials. “I want to hear your views because, for anything to get done, we’re going to need your advocacy.”


richard.simon@latimes.com


Twitter: @richardsimon11


kathleen.hennessey@latimes.com


Twitter: @khennessey





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Video game shares down in wake of shooting






LOS ANGELES (AP) — Shares of video game makers and sellers fell Thursday in the aftermath of a mass shooting at a Connecticut elementary school, which has renewed debate about violent games and their potential influence on crime.


Shares of GameStop Corp., whose stores sell video games as well as systems like the Xbox and Wii, fell 5 percent in afternoon trading.






Investors are seen as being increasingly concerned that the government may impose tougher rules on the sales of games rated for “mature” and older audiences.


Investors may be worried that parents will also avoid buying first-person shooter games like “Call of Duty: Black Ops 2″ after the tragedy Friday morning at Sandy Hook Elementary, in which 20 children and six adults were shot and killed by 20-year-old Adam Lanza.


“Maybe there will be more stringent efforts to make sure youth are not playing games that they’re not old enough to play,” said Mike Hickey, an analyst with National Alliance Securities. “Maybe there will be a greater effort by parents in managing the content their kids are playing.”


Shares of companies involved in the video game industry, many of which had been dropping since the shooting, declined further Thursday.


GameStop stock lost $ 1.37, or 5 percent, to $ 26.18. Shares have barely changed since last Thursday’s close, the day before the shooting, to Wednesday’s close.


— Shares of Activision Blizzard Inc., the publisher of “Call of Duty: Black Ops 2,” fell 9 cents to $ 10.70. The stock had already dropped 5.6 percent.


Electronic Arts Inc. shares fell 41 cents, or 2.9 percent, to $ 13.99. Shares had dropped 5.6 percent.


— Take-Two Interactive Software Inc. shares slipped 29 cents, or 2.5 percent, to $ 11.69. The stock had dropped 8 percent.


The declines came as broader markets rose. The Dow Jones industrial average was up 0.3 percent at 13,295.


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Twitter post offers clue to The Civil Wars' future


NASHVILLE, Tenn. (AP) — While there still remain questions about the future of The Civil Wars, there's new music on the way.


Joy Williams, one half of the Grammy Award-winning duo with John Paul White, said Thursday during a Twitter chat that she was in the studio listening to new Civil Wars songs.


It's a tantalizing clue to the future of the group, which appeared in doubt when a European tour unraveled last month due to "irreconcilable differences."


At the time, the duo said it hoped to release an album in 2013. It's not clear if Williams was referring Thursday to music for a new album or for a documentary score they have composed with T Bone Burnett. They're also set to release an "Unplugged" session on iTunes on Jan. 15.


Nate Yetton, the group's manager and Williams' husband, had no comment — though he has supplied a few hints of his own by posting pictures of recording sessions on his Instagram account recently. The duo announced last summer it would be working with Charlie Peacock, who produced its gold-selling debut "Barton Hollow." The photos do not show Williams or White, but one includes violin player Odessa Rose.


Rose says in an Instagram post: "Playing on the new Civil Wars record... Beautiful sounds."


Even with its future in doubt, the duo continues to gather accolades. Williams and White are up for a Golden Globe on Jan. 13, and two Grammy Awards on Feb. 10, for their "The Hunger Games" soundtrack collaboration "Safe & Sound" with Taylor Swift.


Williams' comments came during an installment of an artist interview series with Alison Sudol of A Fine Frenzy sponsored by The Recording Academy.


___


Online:


http://thecivilwars.com


___


Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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German Health Care Attracts Foreign Patients





BERLIN — When Jalal Talabani, the president of Iraq, needed advanced medical care for a stroke suffered this week, he flew not to the United States or Britain but to Germany, for treatment here in the capital.




For many Americans, Germany is known as a way station where soldiers wounded in Iraq and Afghanistan received immediate medical care on United States military bases. But it is also a popular destination for wealthy and prominent patients from the Middle East, Russia and beyond, experts say.


Before the Arab Spring uprisings, the Egyptian president Hosni Mubarak traveled to Munich in 2004 for back treatment and to Heidelberg in 2010 to have his gallbladder removed. Last year, President Nursultan Nazarbayev of Kazakhstan reportedly had a surgical procedure on his prostate at the University Medical Center Hamburg-Eppendorf.


According to German government statistics, the number of hospital patients from the United Arab Emirates rose to 1,754 from 339 between 2000 and 2010, the most recent year available. From Saudi Arabia, the figure climbed to 712 from 143. The numbers from Iraq were smaller but still rose to 176 from 95. Over the same period, the number of Russians jumped to 4,873 from 842.


“We have one of the worldwide best health care systems and people from abroad know that,” said Isabella Beyer, research associate in medical tourism at the Bonn-Rhein-Sieg University of Applied Sciences. Mr. Talabani, 79, is among them; he was treated in Germany before for back trouble.


Mr. Talabani is now being cared for at Berlin’s Charité hospital, which is more than 300 years old and is one of Europe’s largest university hospitals. The storied institution was home to several Nobel Prize winners, including Robert Koch and Paul Ehrlich. A spokeswoman for Charité, Manuela Zingl, confirmed that Mr. Talabani was being treated there but said that she could not disclose any information on his condition because of rules on medical privacy.


Mr. Talabani was said to be in “stable” condition after suffering a stroke this week, though there were unconfirmed reports that he was in a coma. He was rushed to the Baghdad Medical City on Monday.


He was treated there by medical experts from Iran, Germany and Britain, according to Iraqi staff members. Barazan Sheik Othman, the head of the presidential media office, said in a telephone interview that Mr. Talabani left for Germany accompanied by doctors after they established that he was well enough to be transferred.


Hospitals and clinics here have increasingly sought to market themselves as a destination for international patients. Ms. Beyer said that Germany benefited from a combination of lower prices than the United States but still provided high-quality care. Shorter waiting times and the proximity to the Middle East also helped.


“Before, a lot flew to Geneva,” said Salah Atamna, 44, whose business, Europe Health, seeks to link up patients from abroad with German hospitals and clinics.


Many wealthy Arabs would fly to Germany in the summer to escape the blistering heat at home, Mr. Atamna said, scheduling their vacation to coincide with an operation or other treatment. They often traveled with family members and large entourages. After the attacks of Sept. 11, 2001, it became harder to acquire visas to the United States, and medical travelers began searching for alternatives.


Duraid Adnan contributed reporting from Baghdad, and Victor Homola from Berlin.



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Stocks gain as traders hope for a budget deal









Stocks closed higher as traders hope that lawmakers and the White House can agree on a budget deal in time to avoid steep tax hikes and cuts in government spending at the beginning of the year.

The Dow Jones industrial average rose 60 points to end at 13,312 Thursday. The Dow waffled between small gains and losses early in the day and moved higher in the afternoon.

The Standard & Poor's 500 index rose eight points to 1,444. The Nasdaq composite rose six to 3,050.

The Republican-controlled House passed a plan to avert the “fiscal cliff,” but President Barack Obama has threatened to veto it.

Rising stocks outnumbered falling ones two-to-one on the New York Stock Exchange. Volume was lighter than usual at 3.6 billion shares.

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Russia bill to ban U.S. adoptions of Russian children advances









MOSCOW — Russia's parliament took a first step Wednesday toward banning the adoption of Russian children by American parents, a move intended as retaliation for an anti-corruption law recently passed by Congress.


The State Duma, the lower house of parliament, voted 399 to 17 in favor of a bill that included the ban and also would annul an adoption agreement between the two countries that Russia ratified in July. The measure still has to be approved by the upper house and signed by President Vladimir Putin, who has sent mixed signals about his support.


The Dima Yakovlev law is named after a Russian boy who died of heatstroke in 2008 after being left in a parked car by his adoptive American father. If approved, the legislation would cut off adoptions as of Jan. 1.





American parents have adopted more than 60,000 Russian children over the last two decades. Americans adopt 1,000 to 3,000 Russian children a year, said Boris Altshuler, who heads Right of the Child, a Moscow-based advocacy group. Russian families adopt about 7,000 children a year, far from enough to meet the country's needs.


The ban is intended to punish the United States for the so-called Magnitsky law, passed by Congress this month and named for Sergei Magnitsky, a Russian lawyer and whistle-blower who died in pretrial custody in Moscow in 2009. The Magnitsky law imposed visa restrictions on a group of Russian officials connected to the lawyer's prosecution and death.


Calling the Magnitsky law unfriendly and provocative, Russian legislators initially retaliated with a bill that included visa bans on an unspecified number of U.S. officials as well as on American parents who mistreat adopted Russian children and judges who are deemed lenient with such parents. The State Duma later added the adoption restrictions, accusing U.S. parents of mistreating and killing adopted Russian children and blaming unspecified middlemen of turning adoption into a corrupt and lucrative business.


"More than 80% of Russian children [adopted abroad] are adopted by the United States, and it is no secret for anyone in Russia today that this is a dirty business," Svetlana Goryacheva, a lawmaker with the Just Russia party, told reporters after the vote. "So today we in Russia are notorious for selling our children, and it is high time to stop it."


Ilya Ponomaryov, the only Duma member to speak out against the adoption ban, said there are 1,500 Russian children, including 49 with serious disabilities, whose adoptions by U.S. parents are awaiting approval in Russian courts.


"Today the State Duma for all practical purposes issued a grave verdict for these seriously sick children, who, I am sure, will languish in Russian orphanages for the rest of their lives without proper love and care," Ponomaryov said in an interview after the vote. "Their last chance is Putin's veto."


Putin warned lawmakers last week against "an excessive response" to the Magnitsky law, but gave his blessing to Wednesday's vote, according to his press secretary, Dmitry Peskov.


In an interview with the Russia-24 television network, Peskov called the U.S. law "an unfriendly act" and said the president understands the Russian lawmakers' tough stance.


The measure faces opposition from human rights groups and some Russian officials, including Foreign Minister Sergei Lavrov and the Kremlin's human rights envoy, Vladimir Lukin.


Besides adding the adoption ban, the measure was amended to suspend the activities of Russian nongovernmental organizations funded by the United States.


Rachel Denber, deputy director of the Europe and Central Asia division of Human Rights Watch, denounced both amendments. The U.S. law is designed to protect Russian citizens from corrupt officials, she said, so a symmetrical Russian response would be a measure aimed at corrupt American officials.


"Instead the Russian lawmakers decided to hit where it hurts more," she said in an interview. "They hit U.S. people who want to adopt Russian children and they hit U.S. organizations and activists who want to promote democracy in Russia."


"I am having a hard time believing that the prohibition of the adoption of Russian children by U.S. families can be in the best interests of Russian orphans," she added.


In the last 15 years, 19 adopted Russian children have died in accidents in the United States, while more than 1,200 adopted children have died in Russian families during the same period, according to Altshuler of Right of the Child.


"Our lawmakers thus sacrifice thousands of Russian orphans by locking them up in institutions instead of letting them have a chance to be adopted in the United States and have a real future," he added.


Altshuler said nearly 300,000 Russian children are in orphanages, about two-thirds of whom have parents who can't or won't support them. He called the situation critical and said that adoptions by Russian families aren't sufficient to resolve it.


Earlier Wednesday, Prime Minister Dmitry Medvedev urged Russians to adopt more children.


"Foreign adoption stems from the weak attention of the state and the society toward orphans," Medvedev said at a gathering of the ruling United Russia party.


sergei.loiko@latimes.com





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Claire Danes and Hugh Dancy welcome a baby boy


NEW YORK (AP) — Claire Danes and Hugh Dancy's "Homeland" just got bigger.


Danes' rep confirms the couple welcomed a baby boy named Cyrus Michael Christopher.


People.com first reported Monday's birth.


It's the first child for 33-year old Danes and 37-year-old Dancy. They were married in 2009.


There's no word yet whether the new mom will attend the Golden Globe Awards on Jan. 13. She's nominated for Best Performance by an Actress in a Television Series for her work on Showtime's "Homeland."


Up next, Dancy stars in NBC's "Hannibal," an adaptation of Thomas Harris' novel "Red Dragon."


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F.D.A. and States Meet About Regulation of Drug Compounders


Mary Calvert/Reuters


Margaret Hamburg, the F.D.A. commissioner, testified on the meningitis outbreak before Congress in November. She addressed the need for greater federal oversight of large compounding pharmacies, which mix batches of drugs on their own, often for much lower prices than major manufacturers charge.







SILVER SPRING, Md. – The Food and Drug Administration conferred with public health officials from 50 states on Wednesday about how best to strengthen rules governing compounding pharmacies in the wake of a national meningitis outbreak caused by a tainted pain medication produced by a Massachusetts pharmacy.




It was the first public discussion of what should be done about the practice of compounding, or tailor-making medicine for individual patients, since the F.D.A. commissioner, Dr. Margaret Hamburg, testified in Congress last month about the need for greater federal oversight of large compounding pharmacies. So far, 620 people in 19 states have been sickened in the outbreak, and 39 of them have died.


Pharmacies fall primarily under state law, and the F.D.A. convened the meeting to get specifics from states on gaps in the regulatory net and how the states see the federal role. Some states said they would prefer to see the F.D.A. handle large-scale compounders like the New England Compounding Center, or N.E.C.C., the Massachusetts pharmacy that was the source of the outbreak.


“The consensus in our group was that there is a role for the F.D.A. to be involved in facilities like N.E.C.C.,” said Cody Wiberg, the executive director of the Minnesota Board of Pharmacy. “If you’re talking about compounding, most states have the authority and resources to handle that. If you’re talking about nontraditional compounding,” he said, referring to large-scale enterprises like N.E.C.C., “fewer states may have the resources to do that.”


Large-scale compounding has expanded drastically since the early 1990s, driven by changes in the health care system, including the rise of hospital outsourcing.


“It is very clear that the health care system has evolved and the role of the compounding pharmacies has really shifted,” Dr. Hamburg said in a telephone interview on Tuesday. She said the laws had not kept pace.


“We need legislation that reflects the current environment and the known gaps in our state and federal oversight systems,” Dr. Hamburg said.


Under current law, compounders are not required to give the F.D.A. access to their books, and about half of all the court orders the agency obtained over the past decade were for pharmacy compounders, although compounders are only a small part of the agency’s regulatory responsibilities.


The F.D.A.'s critics argue that the agency already has all the legal authority it needs to police compounders. They say that many compounders have been operating as major manufacturers, shipping to states across the country, and that the F.D.A. should be using its jurisdiction over manufacturers to regulate those companies’ activities.


“There should be one uniform federal standard that is enforced by one agency – the F.D.A.,” said Michael Carome, deputy director of Public Citizen’s Health Research Group, a nonprofit consumer organization, who has been a critic of the agency’s approach. “They have been lax in enforcing that standard.”


But Dr. Hamburg contends that the distinction is not so simple. Lumping large compounders in with manufacturers would mean they would have to file new drug applications for every product they make, a costly and time-consuming process that is not always necessary for the products they make, like IV feeding tube bags, for example. Dr. Hamburg has proposed creating a new federal oversight category for large-scale compounders, separate from manufacturers.


“What concerns me is the idea that we could assert full authority over some of these facilities as though they were manufacturers, as though there were an on-off, black-white option,” Dr. Hamburg said. “That is a heavy-handed way to regulate a set of activities that can make a huge positive difference in providing necessary health care to people.”


The central problem, state representatives said, is how to define large-scale compounding. Should companies be measured by how much they produce, whether they ship across state lines, the types of products they produce, or some combination of those factors?


“It’s easy to stand at a distance and ask why can’t there be a bright line?” said Jay Campbell, executive director of the North Carolina Board of Pharmacy. “Let’s not let the perfect get in the way of the good. We won’t be able to make a distinction that is razor sharp.”


Large-scale compounders play an important role in the health care supply chain when they produce high-quality products, F.D.A. officials say. They fill gaps during shortages and supply hospitals with products that can be made more safely and cost-effectively in bulk than in individual hospitals.


Officials said they wanted to make sure the products made by such suppliers were safe, but were also concerned about disrupting that supply.


Carmen Catizone, head of the National Association of Boards of Pharmacy, said that states were not equipped to regulate the large-scale compounders and that the F.D.A. needed to find a middle path for regulating them.


“Either hospitals are not going to like the solution, or the manufacturers aren’t going to like the fact that these guys get a shorter path,” he said. “But something’s got to give.”


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Federal regulators take steps to strengthen kids' online privacy [Google+ Hangout]

Columnist David Lazarus talks with Mark Blafkin, spokesman for an organization of app developers, and Alan Simpson of Common Sense Media, an advocacy group for parents.









SAN FRANCISCO -- Federal regulators have taken the first major step in nearly 15 years to strengthen the protection of kids’ online privacy.


The Federal Trade Commission said Wednesday that it has given parents greater control over the information that online services collect from kids 12 and under.


The changes don't go as far as originally proposed after heavy lobbying from the technology and media industry that said the changes would hamper economic growth, stifle innovation and limit the scope and number of online games and educational programs for kids.








Live video chat at 3 p.m.


The FTC began a review of the Children’s Online Privacy Protection Act in 2010. It said the law needed to catch up with the advances in technology and the explosion of mobile devices.


“The Commission takes seriously its mandate to protect children’s online privacy in this ever-changing technological landscape,” FTC Chairman Jon Leibowitz said in a statement. “I am confident that the amendments to the COPPA Rule strike the right balance between protecting innovation that will provide rich and engaging content for children, and ensuring that parents are informed and involved in their children’s online activities.”


Among the steps it has taken, the FTC has made it clear that a child’s location, photographs and videos cannot be collected without a parent’s permission. It also closed a loophole that allowed mobile apps and websites to permit third parties to collect personal information from kids without notifying or obtaining the consent of parents.


It also extended kids’ privacy rules to cover IP addresses, mobile device IDs and other means of identifying a user, requiring services to take “reasonable steps” to release kids’ information only to companies that can keep it “secure and confidential.”


Privacy watchdogs issued statements of support for the rule changes.


 “We are at a critical moment in the growth of the children’s digital marketplace as social networks, mobile phones and gaming platforms become an increasingly powerful presence in the lives of young people,” said Kathryn Montgomery, professor of communications  at American University. “The new rules should help ensure that companies targeting children throughout the rapidly expanding digital media landscape will be required to engage in fair marketing and data collection practices.”


Join us for a live video chat at 3 p.m. on the issue with consumer columnist David Lazarus and Mark Blafkin, a spokesman for ACT, an organization representing app developers, and Alan Simpson, vice president of policy at Common Sense Media, an advocacy group representing families.


ALSO:


FTC investigates mobile apps makers on children's privacy


Giant social network Facebook may give access to children under 13


Parents want more online privacy protections for kids, privacy groups say


Follow me on Twitter @jguynn






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