Ravi Shankar, sitar master, dies at 92









Ravi Shankar was already revered as a master of the sitar in 1966 when he met George Harrison, the Beatle who became his most famous disciple and gave the Indian musician-composer unexpected pop-culture cachet.


Suddenly the classically trained Shankar was a darling of the hippie movement, gaining widespread attention through memorable performances at the Monterey Pop Festival, Woodstock and the 1971 Concert for Bangladesh.


Harrison called him "the godfather of world music," and the great violinist Yehudi Menuhin once compared the sitarist's genius to Mozart's. Shankar continued to give virtuoso performances into his 90s, including one in 2011 at Walt Disney Concert Hall.





PHOTOS: Ravi Shankar | 1920 - 2010


Shankar, 92, who introduced Indian music to much of the Western world, died Tuesday at a hospital near his home in Encinitas. Stuart Wolferman, a publicist for his record label Unfinished Side Productions, said Shankar had undergone heart valve replacement surgery last week.


Well-established in the classical music of his native India since the 1940s, he remained a vital figure on the global music stage for six decades. Shankar is the father of pop music star Norah Jones and Anoushka Shankar, his protege and a sitar star in her own right.


Before the 1950s, Indian classical music — with its improvised melodic excursions and complex percussion rhythms — was virtually unknown in America. If Shankar had done nothing more than compose the movie scores for Indian filmmaker Satyajit Ray's "Apu" trilogy in the 1950s, he "would be remembered and revered," Times music critic Mark Swed wrote last fall.


PHOTOS: Notable deaths of 2012


Shankar was on a path to international stardom during the 1950s, playing the sitar in the Soviet Union and debuting as a soloist in Western Europe and the United States. Two early albums also had considerable impact, "Three Classical Ragas" and "India's Master Musician."


During his musical emergence in the West, his first important association was with violinist Menuhin, whose passion for Indian music was ignited by Shankar in 1952. Their creative partnership peaked with their "West Meets East" release, which earned a Grammy Award in 1967. The recording also showed Shankar's versatility — and the capacity of Indian music to inspire artists from different creative disciplines.


He presented a new form of classical music to Western audiences that was based on improvisation instead of written compositions. Shankar typically played in the Hindustani classical style, in which he was accompanied by a player of two tablas, or small hand drums. Concerts in India that often lasted through the night were generally shortened to a few hours for American venues as Shankar played the sitar, a long-necked lute-like stringed instrument.


At first, he especially appealed to fans of jazz music drawn to improvisation. He recorded "Improvisations" (1962) with saxophonist Bud Shank and "Portrait of a Genius" (1964) with flutist Paul Horn, gave lessons to saxophonist John Coltrane (who named his saxophone-playing son Ravi), and wrote a percussion piece for drummer Buddy Rich and Alla Rakha.


On the Beatles' 1965 recording "Norwegian Wood," Harrison had played the sitar and met Shankar the next year in London.


Shankar was "the first person to impress me," among the impressive people the Beatles met, "because he didn't try to impress me," Harrison later said. The pair became close and their friendship lasted until Harrison's death in 2001.


Harrison was instrumental in getting Shankar booked at the now legendary Monterey Pop Festival in 1967. They partnered in organizing the Concert for Bangladesh and were among the producers who won a Grammy in 1972 for the subsequent album. They toured together in 1974, and Harrison produced Shankar's career-spanning mid-1990s boxed set, "In Celebration."


But Shankar came away from his festival appearances with mixed feelings about his rock generation followers. He expressed hope that his performances might help young people better understand Indian music and philosophy but later said "they weren't ready for it."


"All the young people got interested … but it was so mixed up with superficiality and the fad and the drugs," Shankar told The Times in 1996. "I had to go through several years to make them understand that this is a disciplined music, needing a fresh mind."


When Shankar was criticized in India as a sellout for spreading his music in the West, he responded in the early 1970s by lowering his profile and reaffirming his classical roots. He followed his first concerto for sitar and orchestra in 1971 with another a decade later.


"Our music has gone through so much development," Shankar told The Times in 1997. "But its roots — which have something to do with its feelings, the depth from where you bring out the music when you perform — touch the listeners even without their knowing it."


In the 1980s and '90s, Shankar maintained a busy performing schedule despite heart problems. He recorded "Tana Mana," an unusual synthesis of Indian music, electronics and jazz; oversaw the American premiere of his ballet, "Ghyanshyam: The Broken Branch"; and collaborated with composer Philip Glass on the album "Passages."





Read More..

Publisher Bonnier, Flingo partner to make Smart TV Apps






NEW YORK (TheWrap.com) – Bonnier, the publisher of magazines like Savuer and Popular Science, and Flingo, the largest publisher of apps for Smart TVs, have partnered to create a series of apps extending Bonnier’s titles onto Internet-enabled TV sets and set-tops boxes like the Roku.


Together, they will release a new app for each magazine, offering videos, images and archival content for fans. Savuer has a couple of web series, including “The Test Kitchen” which helps home chefs learn how to peel garlic or dice an onion. Those videos, currently on Saveur’s website YouTube channel, will resurface in the apps, which will be distributed for free in app markets thanks to advertising and sponsors.






Though smart TVs remain a small segment of the TV market, Bonnier believes it is an ideal platform for leading media companies to extend their brand.


“This is about going after new technologies and being at the forefront,” Sean Holzman, Bonnier’s Chief Brand Development Officer, told TheWrap. “We don’t look closely at what other publishing companies may be doing. Flingo has a universe of 15 million devices and that should double in 2013.”


The emphasis will be on video since research demonstrates that it remains the top activity, even more than gaming.


Ashwin Navin, CEO of Flingo, said that while many media companies are putting secondary titles on Internet-enabled TVs, Bonnier is using its top titles.


“Major media companies aren’t putting their crown jewels on smart TVs,” Navin told TheWrap. He added that when they measure how long users spend online with certain brands, websites register just a few minutes.


“You see 10 times that in a TV app. People are more captive and less ADD.”


TV News Headlines – Yahoo! News


Read More..

The New Old Age Blog: The Gift of Reading

This is the year of the tablet, David Pogue of The Times has told us, and that may be good news for seniors who open holiday wrappings to find one tucked inside. They see better with tablets’ adjustable type size, new research shows. Reading becomes easier again.

This may seem obvious — find me someone over 40 who doesn’t see better when fonts are larger — but it’s the business of science to test our assumptions.

Dr. Daniel Roth, an eye specialist and clinical associate professor at the Robert Wood Johnson Medical School in New Brunswick, N.J., offered new evidence of tablets’ potential benefits last month at the annual meeting of the American Academy of Ophthalmology.

His findings, based on tests conducted with 66 adults age 50 and over: older people read faster (a mean reading speed of 128 words per minute) when using an iPad, compared to a newspaper with the same 10-point font size (114 words per minute).

When the font was increased to 18 points — easy to do on an iPad — reading speed increased to 137 words per minute.

“If you read more slowly, it’s tedious,” Dr. Roth said, explaining why reading speed is important. “If you can read more fluidly, it’s more comfortable.”

What makes the real difference, Dr. Roth theorizes, is tablets’ illuminated screen, which heightens contrast between words and the background on which they sit.

Contrast sensitivity — the visual ability to differentiate between foreground and background information — becomes poorer as we age, as does the ability to discriminate fine visual detail, notes Dr. Kevin Paterson, a psychologist at the University of Leicester, who recently published a separate study on why older people struggle to read fine print.

“There are several explanations for the loss of sensitivity to fine detail that occurs with older age,” Dr. Paterson explained in an e-mail. “This may be due to greater opacity of the fluid in the eye, which will scatter incoming light and reduce the quality of the projection of light onto the retina. It’s also hypothesized that changes in neural transmission affect the processing of fine visual detail.”

Combine these changes with a greater prevalence of eye conditions like macular degeneration and diabetic retinopathy in older adults, and you get millions of people who cannot easily do what they have done all their lives — read and stay connected to the world of ideas, imagination and human experience.

“The No. 1 complaint I get from older patients is that they love to read but can’t, and this really bothers them,” Dr. Roth said. The main option has been magnifying glasses, which many people find cumbersome and inconvenient.

Some words of caution are in order. First, Dr. Roth’s study has not been published yet; it was presented as a poster at the scientific meeting and publicized by the academy, but it has not yet gone through comprehensive, rigorous peer review.

Second, Dr. Roth’s study was completed before the newest wave of tablets from Microsoft, Google, Samsung and others became available. The doctor made no attempt to compare different products, with one exception. In the second part of his study, he compared results for the iPad with those for a Kindle. But it was not an apples to apples comparison, because the Kindle did not have a back-lit screen.

This section of his study involved 100 adults age 50 and older who read materials in a book, on an iPad and on the Kindle. Book readers recorded a mean reading speed of 187 words per minute when the font size was set at 12; Kindle readers clocked in at 196 words per minute and iPad readers at 224 words per minute at the same type size. Reading speed improved even more drastically for a subset of adults with the poorest vision.

Again, Apple’s product came out on top, but that should not be taken as evidence that it is superior to other tablets with back-lit screens and adjustable font sizes. Both the eye academy and Dr. Roth assert that they have no financial relationship with Apple. My attempts to get in touch with the company were not successful.

A final cautionary note should be sounded. Some older adults find digital technology baffling and simply do not feel comfortable using it. For them, a tablet may sit on a shelf and get little if any use.

Others, however, find the technology fascinating. If you want to see an example that went viral on YouTube, watch this video from 2010 of Virginia Campbell, then 99 years old, and today still going strong at the Mary’s Woods Retirement Community in Lake Oswego, Ore.

Ms. Campbell’s glaucoma made it difficult for her to read, and for her the iPad was a blessing, as she wrote in this tribute quoted in an article in The Oregonian newspaper:

To this technology-ninny it’s clear
In my compromised 100th year,
That to read and to write
Are again within sight
Of this Apple iPad pioneer

Caregivers might be delighted — as Ms. Campbell’s daughter was — by older relatives’ response to this new technology, a potential source of entertainment and engagement for those who can negotiate its demands. Or, they might find that old habits die hard and that their relatives continue to prefer a book or newspaper they can hold in their hands to one that appears on a screen.

Which reading enhancement products have you used, and what experiences have you had?

Read More..

DealBook: Live Blog: DealBook's Post-Election Conference

The fiscal cliff in the United States, the European debt crisis and the slowdown in China’s economy have all weighed on deal-making. The 2012 election results were supposed to provide some clarity to our fiscal future, but the outcome of the much-debated tax increases and budget cuts remains uncertain. Our inaugural conference, “DealBook: Opportunities for Tomorrow,” will explore the challenges and the possibilities in this environment.

Writers and editors at The New York Times will interview leaders chief executives from Wall Street to Silicon Valley in a day-long conference at the Times Center in New York. Whether you’re attending in person or watching our video feed above, you can read up-to-minute analysis from our live blog of the day’s events and take part in the conversation on Twitter with the hash tag #DBconf.

The official conference web site includes biographies of the speakers and an agenda for the day’s events.

Read More..

States pressed to guarantee Medicaid expansion









WASHINGTON — The Obama administration stepped up pressure on states Monday to guarantee insurance for all their low-income residents in 2014 under the new healthcare law, warning governors that the federal government would not pick up the total cost of partially expanding coverage.


"We continue to encourage all states to fully expand their Medicaid programs and take advantage of the generous federal matching funds to cover more of their residents," Health and Human Services Secretary Kathleen Sebelius wrote in a letter to governors.


But Sebelius indicated that governors who do not open their Medicaid programs to all eligible low-income residents would forfeit some of the federal aid promised by the Affordable Care Act.





"The law does not provide for a phased-in or partial expansion," the Department of Health and Human Services said in guidance accompanying Sebelius' letter.


Medicaid has become a major issue in the implementation of the law since the U.S. Supreme Court ruled in June that states can decide whether to expand their Medicaid programs in 2014.


The law originally required the states to open Medicaid to all Americans who earn less than 138% of the federal poverty level, a major change for a program that now largely covers poor children and mothers.


To ease the expansion, the law initially provides full federal funding to cover the new population. Currently, Medicaid costs are split between state and federal governments.


Nonetheless, several Republican governors have said they won't expand Medicaid, citing cost concerns. That prompted speculation that some states might partially expand Medicaid programs. But Obama administration officials said Monday the law did not authorize full federal funding for a more limited expansion.


A state that opens Medicaid to only some new low-income residents would qualify for reduced federal aid, requiring the state to come up with the remainder of the funding.


How the guidance will affect state decisions remains unclear.


Alan Weil, president of the National Academy for State Health Policy, said state leaders probably would not make final decisions until they worked out 2014 budgets next year. "A lot of what we have seen so far is posturing," he said.


But the administration's announcement drew quick criticism from the Republican Governors Assn.


"The Obama administration's refusal to grant states more flexibility on Medicaid is as disheartening as it is short-sighted," said Louisiana Gov. Bobby Jindal, the group's chairman. Jindal has said he will not expand Medicaid in his state.


In contrast, the administration's move was applauded by the National Assn. of Public Hospitals and Health Systems, whose members care for millions of the nation's uninsured, often without compensation. Dr. Bruce Siegel, the association president, said it "takes an important step toward significantly reducing the ranks of the uninsured."


The Obama administration is facing additional resistance from several Republican governors who have said they won't set up insurance exchanges — a cornerstone of the law that will allow Americans who don't get health benefits at work to shop for insurance plans that meet new minimum standards. The federal government can set up exchanges for states that refuse to do so.


Also Monday, Colorado, Connecticut, Massachusetts, Maryland, Oregon and Washington got conditional federal approval to operate their own exchanges. The six were the first to apply, and administration officials said approval for other states, including California, would probably follow.


noam.levey@latimes.com





Read More..

Farmigo Brings Community-Based Farmers' Markets Online



Farmigo wants to bring locally grown produce to the places you already go — work, schools and community centers — and provide something approaching the convenience of home delivery without the cost.


The company launched its local food communities on Tuesday, an effort to deliver a personalized, online farmers’ market experience to entire communities. The idea is to make it super simple to order vegetables online and pick them up at a convenient location, like your office. Farmigo isn’t catering to individuals, and in fact won’t deliver veggies to anyone’s home. It’s all about going where the people are, whether it’s at work, school, church, whatever. And you’ll need to sign up as a community in order to access the service.


“Home delivery is very expensive,” founder and CEO Benzi Ronen told Wired. “The idea is that you come to work every day. You pick up your kids at their school everyday. You go to a community center if you’re working out there every day. We turn those into food communities, so it’s not an extra place you need to go to. The nice thing about it is that we are automatically going into an existing community of people.”


Farmigo’s local food communities will initially launch in the San Francisco Bay Area and New York City, with plans to expand to Los Angeles, Seattle, Portland, Denver, Chicago and Philadelphia. When you sign up a community, Farmigo provides food coaches, who will survey the people in that community and line up farmers to serve them. Each online market features five or six farmers offering everything from produce and dairy to meat and fish. People place a weekly order, which is delivered to your community location.


The convenience of online shopping and direct delivery could make local produce more appealing to people who don’t already shop at farmers’ markets. But this isn’t something everyone will want, or be able to afford. Fresh eggs cost $6 a dozen, and produce can run $2 a pound or more. That adds up fast.


Farmigo isn’t alone in the food-tech startup space. San Francisco’s Good Eggs also offers local food through a web portal. Whereas Good Eggs makes it possible for individual consumers to buy directly from individual vendors, Farmigo is focusing on catering to groups. Several companies already have signed up, including Brooklyn’s Etsy and San Francisco’s Kiva.



“I call it economies of community,” Ronen said. “We’re not trying to compete on economies of scale like the industrial food system. The only way you can create an alternative food system is to get the community to be part of the solution.”


Farmigo launched in 2009 as a cloud software company catering to farms that provided CSA (community supported agriculture) boxes. It has since expanded to provide software support to hundreds of farms across 25 states, which should make it easier to expand the local food community service. It’s part of a shift toward serving consumers. Ronen notes that less than 1 percent of the country buys food directly from farms through the CSA model. “We started to ask ourselves, ‘How do we become relevant to 20 percent of consumers?’” he said.


Farmigo will take a percentage out of each purchase made through its site. It has also recently raised $8 million in series B funding.


Read More..

Luke Bryan cleans up at ACAs with 9 awards






Luke Bryan didn’t want the American Country Awards to end.


He cleaned up during the fan-voted show, earning nine awards, including artist and album of the year. His smash hit “I Don’t Want This Night To End” was named single and music video of the year.






Miranda Lambert took home the second most guitar trophies with three. Jason Aldean was named touring artist of the year. Carrie Underwood won female artist of the year, and a tearful Lauren Alaina won new artist of the year.


Bryan, Aldean, Keith Urban, Lady Antebellum and Trace Adkins with Lynyrd Skynrd were among the high-energy performances.


The third annual ACAs were held at Mandalay Bay in Las Vegas Monday night.


___


Online: http://www.theACAs.com


___


Follow http://www.twitter.com/AP_Country for the latest country music news from The Associated Press.


Entertainment News Headlines – Yahoo! News


Read More..

Rate of Childhood Obesity Falls in Several Cities


Jessica Kourkounis for The New York Times


At William H. Ziegler Elementary in Northeast Philadelphia, students are getting acquainted with vegetables and healthy snacks.







PHILADELPHIA — After decades of rising childhood obesity rates, several American cities are reporting their first declines.




The trend has emerged in big cities like New York and Los Angeles, as well as smaller places like Anchorage, Alaska, and Kearney, Neb. The state of Mississippi has also registered a drop, but only among white students.


“It’s been nothing but bad news for 30 years, so the fact that we have any good news is a big story,” said Dr. Thomas Farley, the health commissioner in New York City, which reported a 5.5 percent decline in the number of obese schoolchildren from 2007 to 2011.


The drops are small, just 5 percent here in Philadelphia and 3 percent in Los Angeles. But experts say they are significant because they offer the first indication that the obesity epidemic, one of the nation’s most intractable health problems, may actually be reversing course.


The first dips — noted in a September report by the Robert Wood Johnson Foundation — were so surprising that some researchers did not believe them.


Deanna M. Hoelscher, a researcher at the University of Texas, who in 2010 recorded one of the earliest declines — among mostly poor Hispanic fourth graders in the El Paso area — did a double-take. “We reran the numbers a couple of times,” she said. “I kept saying, ‘Will you please check that again for me?’ ”


Researchers say they are not sure what is behind the declines. They may be an early sign of a national shift that is visible only in cities that routinely measure the height and weight of schoolchildren. The decline in Los Angeles, for instance, was for fifth, seventh and ninth graders — the grades that are measured each year — between 2005 and 2010. Nor is it clear whether the drops have more to do with fewer obese children entering school or currently enrolled children losing weight. But researchers note that declines occurred in cities that have had obesity reduction policies in place for a number of years.


Though obesity is now part of the national conversation, with aggressive advertising campaigns in major cities and a push by Michelle Obama, many scientists doubt that anti-obesity programs actually work. Individual efforts like one-time exercise programs have rarely produced results. Researchers say that it will take a broad set of policies applied systematically to effectively reverse the trend, a conclusion underscored by an Institute of Medicine report released in May.


Philadelphia has undertaken a broad assault on childhood obesity for years. Sugary drinks like sweetened iced tea, fruit punch and sports drinks started to disappear from school vending machines in 2004. A year later, new snack guidelines set calorie and fat limits, which reduced the size of snack foods like potato chips to single servings. By 2009, deep fryers were gone from cafeterias and whole milk had been replaced by one percent and skim.


Change has been slow. Schools made money on sugary drinks, and some set up rogue drink machines that had to be hunted down. Deep fat fryers, favored by school administrators who did not want to lose popular items like French fries, were unplugged only after Wayne T. Grasela, the head of food services for the school district, stopped buying oil to fill them.


But the message seems to be getting through, even if acting on it is daunting. Josh Monserrat, an eighth grader at John Welsh Elementary, uses words like “carbs,” and “portion size.” He is part of a student group that promotes healthy eating. He has even dressed as an orange to try to get other children to eat better. Still, he struggles with his own weight. He is 5-foot-3 but weighed nearly 200 pounds at his last doctor’s visit.


“I was thinking, ‘Wow, I’m obese for my age,’ ” said Josh, who is 13. “I set a goal for myself to lose 50 pounds.”


Nationally, about 17 percent of children under 20 are obese, or about 12.5 million people, according to the Centers for Disease Control and Prevention, which defines childhood obesity as a body mass index at or above the 95th percentile for children of the same age and sex. That rate, which has tripled since 1980, has leveled off in recent years but has remained at historical highs, and public health experts warn that it could bring long-term health risks.


Obese children are more likely to be obese as adults, creating a higher risk of heart disease and stroke. The American Cancer Society says that being overweight or obese is the culprit in one of seven cancer deaths. Diabetes in children is up by a fifth since 2000, according to federal data.


“I’m deeply worried about it,” said Francis S. Collins, the director of the National Institutes of Health, who added that obesity is “almost certain to result in a serious downturn in longevity based on the risks people are taking on.”


Read More..

DealBook: Delta Takes 49% Stake in Virgin Atlantic for $360 Million

There are few more lucrative airline routes than the one between the financial powerhouses of New York and London. On Tuesday, Delta Air Lines signaled that it was going after that business-heavy market, agreeing to buy a 49 percent stake in Virgin Atlantic from Singapore Airlines for $360 million.

The deal will provide Delta with more access to Heathrow Airport, one of the world’s busiest hubs, where takeoff and landing rights are limited because of high demand and tight capacity. New York, where all major airlines are battling to attract high-paying passengers, is the top international destination from Heathrow.

Singapore bought its stake in 2000 for £600.3 million ($966 million), but it has been dissatisfied with the returns, analysts said. While Delta had considered buying Singapore’s stake two years, the carriers could not agree on a price.

On Tuesday, Delta and Virgin Atlantic said they would apply for antitrust immunity from American and European competition authorities in order to coordinate fares and flight schedules, as well as offer seats on each other’s planes. Virgin Group, headed by the British billionaire Richard Branson, has said it does not plan to sell its 51 percent controlling majority in Virgin Atlantic.

Delta has a strong partnership with Air France-KLM that serves many European destinations, but it is not a strong contender in the London market. Delta has nine daily flights to Heathrow from New York, Boston and Atlanta. But it has no direct flights from other top markets like San Francisco, Chicago, Washington, D.C., Miami or Los Angeles, requiring passengers to connect through its other hubs.

Heathrow is operating at full capacity, and the British government has rejected expansion plans to build a third runway. As a result, landing and takeoff rights, known as slots, are limited, making them rare and prized commodities for the airlines.

Getting more slots, however, is no simple matter even for an airline like Delta, which has global ambitions. Delta has just 0.3 percent of the Heathrow slots, according to the Airport Coordination Limited, which is responsible for slot allocations at airports in Britain.

British Airways dominates Heathrow, with 53 percent of the slots, followed by Lufthansa of Germany, with 5.6 percent, and Virgin with 3.3 percent. American and United each have 2.3 percent.

British Airways’ hold on the airport actually increased in the last year after it completed the acquisition of British Midland International from Lufthansa. The acquisition was challenged by Virgin Atlantic, which claimed it would distort competition and simply reinforce the dominance of British Airways. The deal, however, was cleared by the European Commission in March under certain conditions, including that 14 of the 56 daily slot pairs British Airways received from British Midland be released to other carriers.

Still, Delta’s move is a challenge to American Airlines and British Airways, which are partners in the Oneworld global alliance. The two carriers dominate the New York to London market with 15 daily flights and a shuttlelike schedule of departures every 20 or 30 minutes in the peak evening hours. British Airways and American received antitrust immunity two years ago allowing them to coordinate their schedules and fares.

Delta’s challenge in New York comes at a weak time for American Airlines, which has been in bankruptcy for over a year and which counts New York as one of its five major hubs. Delta is spending $1.2 billion in New York to build a new
terminal at Kennedy Airport to replace its outdated facilities there. It has also expanded its presence at La Guardia Airport, which serves mostly domestic locations, with a deal to exchange landing right with US Airways.

United Airlines, for its part, holds a dominant position at Newark Liberty International Airport since merging with Continental Airlines in 2010.

Virgin was founded by Mr. Branson in 1984 with flights to New York. From the start, it embraced an image of fun travel and cheaper fares. It now has 38 airplanes in its fleet and flies to more than two dozen destinations. But the airline, which is not aligned with any of the three global groups – ­Star Alliance, Sky Team and Oneworld Alliance – has struggled in recent years because of high fuel prices.

The announcement in New York came a day after Virgin disclosed its plans to start domestic flights within the United Kingdom in the spring, with service to Edinburgh and Aberdeen in Scotland. Thanks to slots at Heathrow that British Airways gave up, Virgin will add 24 domestic flights a day.

The Virgin Group also own 25 percent of Virgin America, a low-cost domestic carrier that is independent of its international namesake. American law forbids foreigners from owning more than 25 percent of a domestic
airline. The European Union has a similar requirement barring non-European carriers from holding a majority stake in a European Union airline.

Air France-KLM is also considering buying part of Mr. Branson’s stake in Virgin Atlantic, according to reports in the British media. Such a deal, if it happened, would further strengthen Delta, which is a partner with Air France within the Sky Team alliance.

With the deal, Delta is wading into an old and often feisty rivalry opposing Virgin and British Airways.

Willie Walsh, who runs the parent company of British Airways, the International Airlines Group, said recently that Delta was really more interested in Virgin’s slots at Heathrow than in preserving the airline or its brand.

“I can’t see Delta wanting to operate the Virgin brand because if they do, what does that say about the Delta brand?” Mr. Walsh told Britain’s Telegraph newspaper in an interview. “Delta believes they are the No. 1 airline in the world, so what they would want to do is acquire the slots at Heathrow to enable them to have a strong presence at Heathrow.”

The comments drew a quick response from Mr. Branson, doubled with a characteristic challenge.

“Rumors have been spread in the press that I am planning to give up control of Virgin Atlantic and, according to Willie Walsh (who runs BA) that our brand will soon disappear,” Mr. Branson said on Monday in a statement titled “Sorry BA ­we’re not going anywhere.” “This is wishful thinking and totally misguided. Will BA never learn?”

Mr. Branson then offered to give employees of British Airways £1 million if Virgin Atlantic disappeared within the next five years. If it was still in business then, he challenged Mr. Walsh to pay the same amount to Virgin’s employees.

“Let’s see how much they believe this,” he said. “Let them put their money where their mouth is.”

Read More..

Long-treasured mortgage interest deduction may face changes









WASHINGTON — At 70, Frank White isn't a typical first-time home buyer. But a key reason he ditched his Altadena apartment and bought a three-bedroom house in nearby Pasadena has been common for decades: He wanted the tax break.


"I pay very high taxes, and I have no deductions," said White, who owns an apartment rental business with his two brothers. Now, after purchasing the $500,000 home in November, he's looking forward to writing off the interest on his 30-year mortgage.


But the longtime tax break could face major changes as Washington policymakers search for ways to reduce the deficit as part of the debate on the so-called fiscal cliff. And that's sending shivers through home buyers such as White and much of the housing industry.





"My deductions are important to me, what few I have," White said. "We need to go after the corporations that don't pay a … cent. Let's go after those guys first. But leave me alone."


The home mortgage interest deduction is one of the most cherished in the U.S. tax code. It's also one of the most expensive, estimated to cost the federal government $100 billion this fiscal year.


Primer: Understanding the fiscal cliff


For that reason, the deduction taken on income tax returns is expected to be on the table in Washington's search for more money to reduce the budget deficit and resolve the fiscal cliff.


But the specter of scaling back the tax break, particularly with the housing market still trying to recover from the collapse of the subprime mortgage bubble, is raising alarms among homeowners, Realtors and home builders.


It's also sparking a debate about the true effect of the deduction, which critics argue benefits the wealthy much more than the middle class. They contend that the break hurts first-time home buyers by driving up house prices and that other countries that have no such deduction still have high homeownership rates.


"If we really care about homeownership, then the deduction is just the absolute wrong way to go," said Dennis Ventry, a UC Davis law professor who has studied its effect.


There is agreement that reducing the interest deduction — no one is talking about eliminating it — would cause prices to drop as buyers scale back the amount they could afford to spend.


The concerns are even greater in Southern California and other high-priced regions where homeowners benefit more from the deduction because their mortgages are larger.


"A lot of people buy rather than rent simply because, after the mortgage deduction, it's more affordable," said Syd Leibovitch, president of Rodeo Realty in Beverly Hills. "To limit it or take it away, I think you're going to be surprised at the shocking effect it has on the real estate market."


QUIZ: How much do you know about the fiscal cliff?


President Obama's deficit commission proposed lowering the limit on mortgage principal eligible for a deduction to $500,000 from the current $1 million, removing any break for interest on a second home and turning the deduction into a tax credit capped at 12% of interest paid.


A tax credit would allow homeowners who don't itemize deductions to subtract the interest from the taxes they owe. But while more taxpayers could take advantage of the benefit, a cap would mean those with large mortgages on expensive homes couldn't get a credit for all the interest they pay.


Other proposals have called for similar changes.


Supporters of the tax break worry that proposed changes would not only push down prices but also spook potential buyers.


Lawrence Tang, 38, and his wife own a house in West Covina. But they are renting in San Gabriel and looking for a house there, near where he works as a school technology director. They don't want to sell the West Covina house because the drop in home values wiped out most of their equity.


So the proposed changes would limit how much interest they could deduct on their first house and prevent them from deducting any interest on what would be their second home, Tang said.





Read More..