April 27, 2024

Archives for December 2013

Patricia Ryan, 75, an Editor at Time Inc., Dies

The cause was lung cancer, said her husband, Ray Cave.

Ms. Ryan became the second managing editor of People, the immensely popular weekly devoted to personalities in the news, in 1982. She was  the first woman to be appointed to the top editorial job at a Time Inc. publication in 27 years.

Known at the time as People Weekly, the magazine had made its appearance in 1974 and under its founding managing editor, Richard B. Stolley, became known for its celebrity covers and snappy prose. When Mr. Stolley moved to Life magazine, Ms. Ryan, who had been an editor at People for four years, was named to succeed him.

In her five-year tenure, she allowed articles to run longer and expanded the magazine’s coverage of more serious news, exploring topics like sexual harassment on college campuses, the spreading AIDS epidemic and children orphaned by civil war in Nicaragua, even devoting an entire issue to life in the Soviet Union, then still the Cold War foe of the United States. Ms. Ryan also inaugurated one of People’s glitziest traditions, its annual anointing of “the sexiest man alive,” with the first honoree, Mel Gibson, in 1985.

Under her leadership, People won a national magazine award for general excellence in 1987, the only such honor in the magazine’s history.

“Pat was good at story ideas, and she was a writer’s editor,” James Seymore, who worked for both Mr. Stolley and Ms. Ryan at People and was later the top editor of Entertainment Weekly, said in an interview Monday. “That is, she was more comfortable with well-written material than not. Before her, like Time, People had been an editor’s magazine, but she made the articles longer, and generally under Pat we favored writers more.”

Ms. Ryan was born on June 18, 1938, in Unionville, Pa., west of Philadelphia. Her father, James, was a horse trainer, and the knowledge she gleaned from him would later serve her professionally when, as a secretary at Sports Illustrated, she gave betting tips to Andre Laguerre, the managing editor.

According to family lore, one day in the early 1960s, when Mr. Laguerre was short of reporters, he sent her to the Belmont Park racetrack to investigate a strike by the grooms. She was promoted rapidly, from reporter to writer to editor — she was the magazine’s first female senior editor — and, until moving to People in 1978, worked with many of the magazine’s more literary contributors, including Frank Deford and George Plimpton.

“Pat Ryan edited more of my stories than anyone else,” Mr. Deford wrote in his 2012 memoir, “Over Time.” “She understood me, as both a writer and a person, better than any male editor.”

In addition to Mr. Cave, himself a former managing editor of Time and Sports Illustrated, Ms. Ryan is survived by a brother, Owen; a sister, Oonah; two stepchildren, John and Catherine Cave; and a stepgranddaughter.

From 1987 to 1989, Ms. Ryan was editor of Life, the general-interest magazine known for its photographic storytelling, originally published weekly but by then a monthly. Her cover subjects were both serious and lighthearted, including an airplane crash, Elvis Presley’s ex-wife and daughter, the legacy of Robert F. Kennedy and a history of the brassiere at age 100.

Her 28-year career at the company, then known as Time Warner, came to an end in August 1989, when she was fired without explanation by Jason McManus, the company’s editor in chief. Mr. McManus had been a longtime professional rival of Mr. Cave, with whom Ms. Ryan was living, and he had dismissed Mr. Cave several months earlier.

In the 1960s, while she was working at Sports Illustrated, Ms. Ryan, whose only post-secondary education until then had been secretarial school, earned a bachelor’s degree in history from Columbia. It was an achievement acknowledged in a letter written by the magazine’s publisher, Garry Valk, and published there in 1969. Vaguely condescending as it praised her, it was a document equal parts pat on the back and pat on the head.

“So our fondest congratulations, Pat,” Mr. Valk concluded, after boasting like a proud papa of Ms. Ryan’s record both in the academy and at the magazine. “You are a lady and a scholar. And a writer.”

Article source: http://www.nytimes.com/2014/01/01/business/media/patricia-ryan-75-an-editor-at-time-inc-dies.html?partner=rss&emc=rss

Egypt Says 3 Journalists Will Be Held 15 More Days

Human rights organizations have denounced the charges, accusing the authorities of deliberately confusing the act of reporting on the Muslim Brotherhood with belonging to the group, which has been officially classified as a terrorist organization. Rights advocates said the accusations had sent a worrying signal about the military-backed government’s approach to press freedoms.

Four journalists from Al Jazeera were arrested on Sunday, and one, an Egyptian cameraman, was later released. Prosecutors began interrogating the three remaining in custody, including the bureau chief, Mohamed Fahmy, a Canadian-Egyptian citizen; Peter Greste, an Australian correspondent; and Baher Mohamed, an Egyptian producer.

The arrests were part of a widening government crackdown on the Brotherhood, the Islamist group that fell from power after the military’s ouster of President Mohamed Morsi, a Brotherhood leader, in July.

Last Wednesday, the government designated the Brotherhood a terrorist group, and in recent days, Egyptian courts have convicted hundreds of Mr. Morsi’s supporters who participated in protests, sentencing them to prison.

The charges against the journalists also appeared intended as retaliation against Al Jazeera, the Qatari channel whose Arabic-language service has strongly backed Mr. Morsi and the Brotherhood. The English language news service takes a far more independent editorial position.

Several journalists from both the English- and Arabic-language services have been detained since Mr. Morsi’s ouster, and two Al Jazeera Arabic journalists have remained in prison for months.

Prosecutors released a lengthy list of accusations on Tuesday, saying the journalists worked for a network affiliated with the Brotherhood, joined a terrorist group and possessed the kind of equipment typically found in Egyptian news bureaus, including cameras, gas masks and microphones, without a permit.

Mr. Fahmy, a veteran journalist who has worked for CNN and contributed to The New York Times, was singled out in the statement, accused both of terrorism and of turning suites in the Marriott into a news media center where he “manipulated” footage to harm Egypt’s reputation, prosecutors said.

A brother, Sherif Fahmy, said that Canadian diplomats had not attended the beginning of his brother’s interrogation. Mr. Fahmy, who suffered a dislocated shoulder unrelated to his arrest, had not been allowed to see doctors at Tora Prison, where he was being held, the brother said.

Ragia Omran, a human rights advocate, called the terrorism-related accusations “ridiculous” and said they could be applied to “anyone who works in journalism.”

The charges, she said, were part of a pattern of aggressive prosecutions under the military-backed rulers, including convictions of protesters, that were seldom pursued even under Hosni Mubarak, Egypt’s authoritarian president who was deposed in 2011.

Article source: http://www.nytimes.com/2014/01/01/world/middleeast/egypt-says-3-journalists-will-be-held-15-more-days.html?partner=rss&emc=rss

House Prices Rise Again, but the Pace Could Slow

In 2013’s last glimpse at the housing market, figures released on Tuesday showed that home prices in major metro areas kept rising in October. Year-over-year, prices were up 13.6 percent, the biggest gain in more than seven years.

After plummeting during the housing bust, prices have increased steadily since the spring of 2012. Prices in 20 major American metro areas increased a modest 0.2 percent between September and October, without seasonal adjustment, evidence that the quick rebound in prices is slowing, according to the closely watched SP/Case-Shiller data. Higher mortgage rates might continue to slow the pace of improvement going forward, analysts say.

Nationally, the increase in home prices is moderating, the SP/Case-Shiller analysis said. Prices decreased in nine metro areas between September and October, including Denver, Chicago and Washington, whereas just one saw price decreases between August and September.

“Monthly numbers show we are living on borrowed time and the boom is fading,” said David M. Blitzer of SP Dow Jones Indices in an analysis of the new data. A big question, he said, is how quickly the Federal Reserve pulls back from its extraordinary efforts to keep rates low.

“The key economic question facing housing is the Fed’s future course to scale back quantitative easing and how this will affect mortgage rates,” Mr. Blitzer said. “Other housing data paint a mixed picture suggesting that we may be close to the peak gains in prices.” He added: “Most forecasts for home prices point to single-digit growth in 2014.”

In many metro areas where prices declined sharply — particularly those encompassing Sun Belt and Rust Belt cities like Phoenix, Las Vegas and Detroit — similarly sharp rebounds followed. But generally, prices have not touched their pre-bust heights, with prices across the country remaining about 20 percent lower, the SP/Case-Shiller data show. In Dallas and Denver, however, prices have hit new peaks, the report said.

Many economists expect price increases to moderate next year, with higher prices and higher mortgage costs making homes less affordable, even though the labor market recovery might pick up some steam and inventory might increase in some areas.

In December, the Fed said that improving economic conditions warranted the central bank starting to ease up on its stimulus efforts. The Fed said it would cut its monthly purchases of Treasury and mortgage-backed securities to $75 billion a month from $85 billion a month.

“Even after this reduction, we will be still expanding our holdings of longer-term securities at a rapid pace,” Ben S. Bernanke, the Fed chairman, said at a December news conference, his last before Janet L. Yellen takes over, pending Senate confirmation. “Our sizable and still-increasing holdings will continue to put downward pressure on longer-term interest rates, support mortgage markets, and make financial conditions more accommodative, which in turn should promote further progress in the labor market.”

But mortgage rates have risen, and the pace of sales has slowed in many metro areas. According to the National Association of Realtors, the government-backed mortgage finance company, existing-home sales dropped 4.3 percent to a seasonally adjusted annual rate of 4.9 million in November. New-home sales dropped 2.1 percent to a seasonally adjusted annual rate of 464,000, the Census Bureau said.

“While most housing markets still remain affordable, rising mortgage rates and rising house prices over the past six months are making it more challenging for the typical family to purchase a home without stretching beyond their means,” said Frank Nothaft, chief economist at Freddie Mac, in an analysis. “We expect mortgage rates to rise over the coming year, so it’s critical we start to see more job gains and income growth in the coming year.”

In some areas, limited housing supply has pushed prices high. “Home sales are hurt by higher mortgage interest rates, constrained inventory and continuing tight credit,” said Lawrence Yun of the National Association of Realtors, in an analysis. “There is a pent-up demand for both rental and owner-occupied housing as household formation will inevitably burst out, but the bottleneck is in limited housing supply, due to the slow recovery in new home construction.”

In a separate report released Tuesday, the Conference Board, a research group, said that consumer confidence jumped to 78.1 in December, from 72.0 in November, with sentiment about current economic conditions reaching its highest level since the spring of 2008. “Despite the many challenges throughout 2013, consumers are in better spirits today than when the year began,” said Lynn Franco, director of economic indicators at the Conference Board.

Many economists do expect jobs and income growth to improve, and to have a resulting effect on housing. “We expect that the improving employment picture next year will be accompanied by a sustained increase in interest rates, which in turn will roll over into the mortgage market,” said Doug Duncan, chief economist at Fannie Mae. He said the housing recovery might continue on a “modest upward trend.”

In the SP/Case-Shiller report, a survey of 10 major metro areas, as well as a broader survey of 20 major metro areas, showed year-on-year price increases of about 13.6 percent in October, the biggest such rise since early 2006.

Economists have said foreclosures and short sales are making up a smaller proportion of sales, making housing price gains look larger, since those homes can trade at steep discounts.

Article source: http://www.nytimes.com/2014/01/01/business/economy/house-prices-rise-again-but-the-pace-could-slow.html?partner=rss&emc=rss

How Gay News Anchors Broke Their Own Coming Out Stories

In a post on Sunday that looked back on her yearlong recovery from a bone-marrow transplant in 2012 to treat a rare blood disorder called myelodysplastic syndrome, Ms. Roberts wrote, “I am grateful for my entire family, my long time girlfriend, Amber, and friends as we prepare to celebrate a glorious new year together.” (Ms. Roberts did not give her girlfriend’s last name, but People magazine identified her as Amber Laign, a licensed massage therapist from San Francisco whom she met through friends about a decade ago.)

That passing reference was soon followed by a statement from ABC News (“We love Robin and Amber, who we have all known for a long time. We were so touched by Robin’s Facebook message today and so thankful for all the loving support she has in her life.”) as well as this Twitter message from Michelle Obama on her @FLOTUS account: “@RobinRoberts, I am so happy for you and Amber! You continue to make us all proud. — mo”

Ms. Roberts’s announcement, accompanied by no other interviews or TV appearances (she did not appear on “Good Morning America” on Monday), follows several other coming-out pronouncements by TV news personalities these past few years, some of whom did so on the air, some in a public statement, but all in a way that treated the news as almost casual occurrence, and no longer worthy of a Time magazine cover.

Here are some examples.

Who Thomas Roberts, MSNBC

How He Came Out In 2006, when he was working for CNN, Mr. Roberts announced that he was gay at the annual meeting of the National Gay and Lesbian Journalists Association, saying that he had decided it was time to go public with news that he had already shared with many of his co-workers. “When you hold something back,” he told attendees, “that’s all everyone wants to know.” In 2012, Mr. Roberts married his longtime partner, Patrick Abner, in a ceremony officiated by Gavin Newsom, the lieutenant governor of California.

Who Sam Champion, ABC

How He Came Out Though Mr. Champion, the longtime weather anchor for “Good Morning America” and now anchor and managing editor at the Weather Channel, never hid his homosexuality (and in fact, came out in a casual comment to a reporter in the Vows column about the wedding of Mr. Roberts and Mr. Abner), his official pronouncement came on morning TV in 2012. Sitting on a couch with his fellow anchors, including George Stephanopoulos, Mr. Champion disclosed that he was engaged to his boyfriend, Rubem Robierb (who was shown standing in the wings), saying “I am so, so lucky to have this person in my life.”

Who Jenna Wolfe, NBC

How She Came Out Prodded by a beaming Matt Lauer to share her “big news” with the “Today” show audience in March last year, Ms. Wolfe said, “I’m actually pregnant, I’m quite pregnant.” She then added, almost as an aside, that she was having a baby girl with “my girlfriend, Stephanie Gosk,” a foreign correspondent for NBC. “This is the adventure of a lifetime,” she added.

Who Anderson Cooper, CNN

How He Came Out After years of dodging speculation about his sexuality and refusing to discuss his private life, Mr. Anderson finally opened up in an email to his friend, the blogger Andrew Sullivan, which Mr. Sullivan then published with Mr. Cooper’s permission. “The fact is, I’m gay, always have been, always will be, and I couldn’t be any more happy, comfortable with myself, and proud,” Mr. Cooper wrote. “I have always been very open and honest about this part of my life with my friends, my family, and my colleagues. In a perfect world, I don’t think it’s anyone else’s business, but I do think there is value in standing up and being counted. I’m not an activist, but I am a human being and I don’t give that up by being a journalist.”

Mr. Cooper said that he had previously declined to discuss his sexuality because his work often took him to war zones, and that “for my safety and the safety of those I work with, I try to blend in as much as possible.” But he added that he realized that his continued silence on this subject had “given some the mistaken impression that I am trying to hide something — something that makes me uncomfortable, ashamed or even afraid. This is distressing because it is simply not true.”

Who Dan Kloeffler, ABC

How He Came Out In perhaps the most spontaneous public declaration of one’s sexual orientation, the “World News Now” anchor came out on air in the middle of the night in 2011, wrapping up a brief report about the actor Zachary Quinto disclosing that Mr. Quinto was gay. “He’s 34, I’m 35,” Mr. Kloeffler said as his co-anchor, Yunji de Nies, looked on with a mix of surprise and amusement. “I’m thinking I can lose my distraction about dating actors, for that one, maybe.” Later, in a blog post for ABC, Mr. Kloeffler elaborated on his decision. “I’ve never shared that I’m gay on-air, even though I’ve been out to my family, friends and co-workers for years,” he wrote. “In fact, an old boyfriend — now best friend — has always given me a hard time about not doing so. But for the same reason that Zach decided to come out, I too, no longer wanted to hide this part of my life.”

Article source: http://www.nytimes.com/2014/01/02/fashion/gay-news-anchors-coming-out-lgbt-news.html?partner=rss&emc=rss

Mike O’Connor, Advocate for Mexican Journalists, Dies

O’Connor, the Mexico representative of the Committee to Protect Journalists, died in his sleep at his home in Mexico City on Sunday. The cause was a heart attack, according to his wife Tracy Wilkinson, who is bureau chief for the Los Angeles Times.

Local journalists and colleagues remembered O’Connor as a man with an unparalleled grasp of the perils and complexities of working as a journalist in Mexico. Hard on those he felt were failing to protect reporters, O’Connor showed boundless sympathy for journalists struggling to maintain careers and personal lives in the face of threats.

“He would spend hours over the phone with local journalists in the most isolated places in Mexico, just to listen to the stories and to try to help them cope with fear,” said Carlos Lauria, senior Americas program coordinator for the New York-based nonprofit where O’Connor had worked since 2009.

Born in a refugee camp where his father was stationed in post-war Germany, O’Connor lived along the U.S.-Mexican border with his parents, often moving between the two countries on short notice, a childhood he described in a 2007 memoir, “Crisis, Pursued by Disaster, Followed Closely by Catastrophe: A Memoir of Life on the Run.”

O’Connor worked as a television reporter in California, then covered Latin America during the 1980s for CBS News before moving into print, writing for The New York Times in Central America and the former Yugoslavia. He also reported for National Public Radio from Haiti, where he earned an Overseas Press Club award, the former Yugoslavia and the Middle East, where he covered the Israeli-Palestinian conflict.

“He was a journalist and this made him different from other members of groups that protect the press and freedom of expression,” said Marcela Turati, a reporter who covers the drug war for the investigative news magazine Proceso. “He took defending journalists very personally.”

O’Connor was one of the most important forces behind a 2012 Mexican law giving federal authorities greater powers to prosecute crimes against journalists in Mexico. The Committee to Protect Journalists says 29 have been killed in the country in retaliation for their work since 1992.

O’Connor’s reporting skills and knowledge of Mexico allowed him to pierce the secrecy and ambiguity around many attacks and determine which had been motivated by the victims’ work and which were unrelated.

At one press conference in the Pacific Coast state of Sinaloa, long dominated by a cartel of the same name, O’Connor issued a challenge to authorities, saying “Who’s in control here? You or them? In the government, the governor’s office, who’s in control?” remembered Javier Valdez Cardenas, a correspondent for the Sinaloa paper Rio Doce.

O’Connor also made many trips to Mexican states where journalists were under daily threat, producing vivid, highly detailed reports on areas that were receiving little national or international attention.

U.S. State Department spokesman Jen Psaki issued a message of condolences on O’Connor’s death, calling him “a fearless truth seeker” as well as “a passionate and articulate voice of conscience for many.”

“We honor the memory of Mike O’Connor, and know that his legacy will inspire many to keep fighting for truth and for the defense of human rights and a vibrant, free press,” Psaki wrote.

O’Connor is survived by his wife, two sons from a previous marriage, and two granddaughters, as well as two sisters and two half-brothers.

Article source: http://www.nytimes.com/aponline/2013/12/31/world/americas/ap-lt-obit-mike-oconnor.html?partner=rss&emc=rss

‘Biggest Loser: Australia’ Trainer Brings Weight-Loss Program to U.S.

In the six months the firm was given to make Americans aware of Ms. Bridges and her online weight-loss program, 12 Week Body Transformation (12WBT), its conference room was home to the following interactions: a strategy meeting with Blue State Digital, the marketing firm that worked for President Obama’s campaign; discussions about which photos made Ms. Bridges look younger, and how maybe the ones in which she had bangs made her look too severe; analysis of focus groups; invocations of a technology in which Internet ads would follow users around other websites until they signed up for the program, all because they had clicked on Ms. Bridges’s ad once; a conversation that was supposed to be light but turned a little tense about the fact that the American firms seem to keep saying “12-Week Body” as an abbreviation for the program; many debates over American vernacular; conversations over transferring recipes to an American audience, most notably finding substitutes for kangaroo as a protein source; and crinkly conference calls during the one or two hours when parties in California and Australia are both reasonably awake for passionate negotiations of Ms. Bridges’s time.

At any given point there are more than 100 people working on Ms. Bridges’s brand, but there is only one Michelle Bridges.

In Australia, Ms. Bridges is best known for her role as the trainer on that country’s edition of the TV show “The Biggest Loser.” She has lines of housewares and workout clothes sold through discount department stores. She is also the personality behind 12WBT, an interactive online diet and fitness program in a country for which obesity rates have grown to 63 percent in recent years. Since 12WBT was introduced in January 2010 in Australia, more than 250,000 people have joined at $199 Australian ($176) or 12 weekly payments of $19.99.

Now she’s bringing 12WBT to the United States, along with the rest of her brand, in an attempt to gain a share of the lucrative diet industry. It remains to be seen, though, if there’s room for another diet guru in a saturated field.

“Losing weight is a science,” Ms. Bridges said recently over breakfast at Mr. C in Los Angeles, where she ordered an egg white omelet and black coffee. “Keeping weight off is a psychology.”

It is this distinction between psychology and science (though psychologists might debate the notion that their field isn’t a science) that Ms. Bridges believes gives her an edge. She said 12WBT attacks “problematic thinking” with a full month of “preseason,” in which dieters clean out their refrigerators, have important conversations with their families, prepare their schedules and, most importantly, practice the fine art of “getting real,” Ms. Bridges’s favorite term for overcoming the thinking that led them to becoming overweight in the first place.

“Science and psychology are separate,” she said, every word punctuated with a pleading intensity that never let up. “I can get weight off anyone. I can get weight off anyone. Keeping it off, that’s a different ballgame. That’s your head.” (How well they keep it off is anyone’s guess, though. Like other diet companies, 12WBT says it does not keep track of how their clients do long-term, but that some are so successful that they keep signing up.)

Ms. Bridges, 43, has bright blue eyes, a deep orangy tan and shoulders that seem more like a diagram of the muscular system. She leaned back, mock exhausted from having to explain her philosophy yet again. She took a bite of toast. “Yes,” she said, shaking the bread, “I eat carbs.”

When Ms. Bridges was a fitness trainer at a gym, said her ex-husband, Bill Moore (who owned that gym and is now her business partner), “she had this very empathetic way about her. Instead of saying, ‘I’m super fit and you’re not,’ she would be going: ‘This class is killing me, but I’m going to go harder. Come with me, come with me.’ ”

He and Ms. Bridges would sit on the couch at home, he said, and watch the first season of Australia’s “Biggest Loser,” which featured Bob Harper and Jillian Michaels, the trainers from the American version of the show. Ms. Bridges would say to Mr. Moore, “I could do that job.”

Article source: http://www.nytimes.com/2014/01/02/fashion/Weight-Loss-Program-Personal-Fitness-Trainer-Michelle-Bridges-.html?partner=rss&emc=rss

Chinese Businessman Seeking Stake in Times Co.

Shares in the Times Company jumped more than 4 percent to a five-year high on Monday, shortly after the businessman, Chen Guangbiao, hinted at his plans in a speech in southern China.

Arthur Sulzberger Jr., publisher of The New York Times, said in 2013 that the family that controls the paper is not interested in selling it.

In a phone interview on Tuesday, Mr. Chen said he had been thinking about “working with” The New York Times for years. Recently, he said, he had persuaded two businessmen, including a Hong Kong tycoon, to help him raise about $1 billion to snap up a large portion of the company, now valued at about $2.4 billion based on its stock price.

Because of the way its shares are structured, the company is controlled largely by a special class of stock, Class B shares, held by descendants of Adolph S. Ochs, who acquired the paper in 1896. The Class A stock, which is publicly traded, rose about 86 percent in 2013.

Mr. Chen, who made a fortune in the recycling business, said he had set up a meeting with Times representatives next week in New York and planned to make his pitch because The New York Times was the world’s most influential publication. Eileen Murphy, a spokeswoman for The Times, said, “We have no information about any such meeting.”

In the telephone interview, Mr. Chen said, “If I can get this deal with The New York Times, I will be able to bring more positive images and influence to contribute to world peace and make the world a better place.” He added, “If the deal breaks off, I will keep searching for another credible and influential media company in the U.S. to achieve my goal.”

Mr. Chen, who is estimated to be worth about $800 million, according to the Hurun Rich List, has been praised and ridiculed for his publicity stunts, which have included handing out cash and “canned fresh air” to raise awareness about charitable giving and the environment.

Although The Times has a news bureau in China, the paper’s English- and Chinese-language websites have both been blocked here since late 2012, after The Times published an article about the hidden wealth of the relatives of Wen Jiabao, then Chinese prime minister.

Mr. Chen said he would work to repair The Times’s image in China, and to improve the paper’s understanding of the country.

“My plan for The New York Times if I get the deal will be putting the paper on every newsstand across the country and making The Times accessible to every Chinese household. China is such a big market and is too big to miss,” he said.

The New York Times’s strong recent stock performance follows several quarters of positive earnings results and gains in circulation, though it still faces a struggling advertising market. The company’s stock closed on Tuesday at $15.87, down 22 cents.

In 2014, it plans several initiatives, including a website redesign, new digital products and the use of native advertising, which is paid content from marketers that is designed to look more like the online articles it appears alongside than traditional advertising.

Ravi Somaiya contributed reporting from New York and Stephanie Yifan Yang contributed research from China.

Article source: http://www.nytimes.com/2014/01/01/business/media/chinese-businessman-announces-bid-to-buy-stake-in-times-co.html?partner=rss&emc=rss

It’s the Economy: Thinking Outside the (Big) Box

One recent Sunday, however, my wife and I caved. We needed to buy four separate closets and all the interior trimmings, and Ikea was the only place we could find them for less than $600. Coincidentally, it was the same weekend in which I was reading “The Good Jobs Strategy,” by Zeynep Ton, a business professor at M.I.T.’s Sloan School of Management. Ton, 39, grew up in Turkey and spent several summers working at her father’s apparel factory, often sewing pockets for bathrobes. The job was, like many menial low-wage tasks, both pressure-filled and boring, and Ton wished she could find a way to make such workers happier. After a volleyball scholarship brought her to the United States as a young adult, she eventually dedicated her academic career to figuring out how to make low-paid work more rewarding for employees and employers alike.

In the last few years, Ton has become a revolutionary force in a field that would seem unlikely to generate many — the Kafkaesque-titled Operations Management. Her central thesis is that many of those big-box retailers have been making a strategic error: Even the most coldhearted, money-hungry capitalists ought to realize that increasing their work force, and paying them and treating them better, will often yield happier customers, more engaged workers and — surprisingly — larger corporate profits. This sounds Pollyannaish, sure, but a study co-authored by Marshall Fisher, a Wharton professor who specializes in retail-management studies, backs it up. For every dollar of increased wages, one retailer that was studied by Fisher brought in $10 more in revenue. For more-understaffed stores in the study, the boost was as high as $28.

The problem results from the way many companies consider their workers. Ikea, for instance, has more than 130,000 global workers. In order to manage all these people, it uses something called work-force-management software, which ensures that there are enough workers — but not too many — to handle the forecasted in-store shopping traffic. (Walmart, which has 16 times as many workers, does, too, as do most larger retailers.) The software typically codes workers as a cost — one of the biggest — and aims to find the most efficient number of employees that can handle expected traffic. A trip to a big-box store reveals this algorithm’s logic in practice. There always seem to be endless aisles of merchandise but no one to answer your questions.

Ton, however, argues that workers are not merely a cost; they can be a source of profit — a major one. A better-paid, better-trained worker, she argues, will be more eager to help customers; they’ll also be more eager to help their store sell to them. The success of Costco, Trader Joe’s, QuikTrip and Mercadona, Spain’s biggest supermarket chain, indicate, she argues, that well-paid, knowledgeable workers are not an indulgence often found in luxury boutiques with their high markups. At each of the aforementioned companies, workers are paid more than at their competitors; they are also amply staffed per shift. More employees can ask customers questions about what they want to see more of and what they don’t like, and then they are empowered to change displays or order different stock to appeal to local tastes. (In big chains, these sorts of decisions are typically made in headquarters with little or no line-staff input.) Costco pays its workers about $21 an hour; Walmart is just about $13. Yet Costco’s stock performance has thoroughly walloped Walmart’s for a decade.

I was thinking about this as my wife and I re-entered Ikea. From the moment we walked into the store, we realized that something changed. A greeter at the entrance pointed out a shortcut to get to the closet department, which probably saved us half an hour. When we got there, a salesman guided us through the options. Suspicious that this was a fluke, I made a point of asking questions of every worker we passed, but every one was pleasant, knowledgeable and helpful. Even on a crowded Sunday, there seemed to be plenty of roving employees looking to answer, direct and expound upon the various differences between the Pax and the Stuva closet systems — of which, I can now tell you, there are many.

Adam Davidson is co-founder of NPR’s “Planet Money,” a podcast and blog.

Article source: http://www.nytimes.com/2014/01/05/magazine/thinking-outside-the-big-box.html?partner=rss&emc=rss

Social Media as a Megaphone to Pressure the Food Industry

She testified before the Food and Drug Administration, but nothing happened. It wasn’t until she went online, using a petition with the help of the Center for Science in the Public Interest, that her pleas to remove artificial dyes from food seemed to be heard.

Mars, the candy’s maker, is now hinting that it may soon replace at least one of the dyes with an alternative derived from seaweed.

“I’ve really thought about calling them,” Ms. Shutters said about Mars. “I’m not trying to be this horrible person. What I’m really thinking is that this is an opportunity for their company to lead what would be an awesome publicity coup by taking these dyes out of their products.”

While the F.D.A. continues to allow certain dyes to be used in foods, deeming them safe, parents and advocacy groups have been using websites and social media as powerful megaphones to force titans of the food industry to reconsider the ingredients in their foods and the labeling and processing of their products. In several instances in the last year or so, major food companies and fast-food chains have shifted to coloring derived from spices or other plant-based sources, or changed or omitted certain labels from packaging.

Matthew Egol, a partner at Booz Company, the consulting firm, said that while food companies had benefited from social media to gain rapid insight into trends, data on what products to introduce and which words to use in marketing, they also had been the target of complaints that sometimes become magnified in an online environment.

Mr. Egol said companies were approaching the negative feedback they get with new tools that help them assess the risks posed by consumer criticism. “Instead of relying on a P.R. firm, you have analytical tools to quantify how big an issue it is and how rapidly it’s spreading and how influential the people hollering are,” he said. “Then you can make a decision about how to respond. It happens much more quickly.”

From Cargill’s decision to label packages of its ground beef that contain “pink slime,” or what the industry prefers to call finely textured meat, to PepsiCo’s decision to replace brominated vegetable oil in Gatorade with a natural additive at the behest of a teenager, corporations are increasingly capitulating to consumer demands.

Companies are reluctant to admit a direct connection between the crusades of consumers like Ms. Shutters or Vani Hari, a blogger known as the Food Babe, and their decisions to tweak products, but the link seems clear. More than 140,000 people have signed Ms. Shutters’s petition on petroleum-based food dyes, and dozens have commented on Ms. Hari’s posts about some of the ingredients in items on Chick-fil-A’s menu.

“We’ve always tried to be a customer-focused organization,” said David B. Farmer, vice president for product strategy and development at Chick-fil-A. “What has clearly changed is some of the channels of communications, which wasn’t a factor in the past like it is today. We’ve had to adapt to that.”

Two years ago, Ms. Hari marveled in a blog post about the nearly 100 ingredients in a Chick-fil-A chicken sandwich and took issue with some of them, like MSG, artificial colors and TBHQ, or tertiary butylhydroquinone, which is used as a preservative in many foods.

“TBHQ is a derivative of butane,” she said in a telephone interview. “The F.D.A. says TBHQ cannot exceed 0.02 percent of fats and oils in a product, but consumers who are eating a sandwich that has it plus French fries and other things that also have it in a single meal may be getting more than that.” She followed that post with another, offering a recipe her readers could use to make a chicken sandwich that is a pretty fair imitation of Chick-fil-A’s — but with only 13 ingredients, none of them artificial.

Chick-fil-A eventually responded, inviting Ms. Hari in October 2012 to spend a day at its headquarters in Atlanta, where she discussed her concern about some ingredients as well as larger issues like the use of chicken from animals whose feed contains antibiotics and the potential for labeling products that have genetically engineered components.

Article source: http://www.nytimes.com/2013/12/31/business/media/social-media-as-a-megaphone-to-push-food-makers-to-change.html?partner=rss&emc=rss

Home Deals Barely Budge, Indicating Stability in Sales

WASHINGTON — The number of Americans who signed contracts to buy existing homes in November was nearly unchanged from October, suggesting sales are stabilizing after several months of declines.

The National Association of Realtors said on Monday that its seasonally adjusted index for pending home sales ticked up to 101.7 from 101.5 in October. The October figure was revised lower from an initial reading of 102.1.

Higher mortgage rates and strong price gains over the last two years have slowed sales. The pending home sales index had fallen for five straight months before November. Completed sales of existing homes fell for three straight months, the association said earlier this month.

There is generally a one- to two-month lag from a signed contract to a completed sale.

The average interest rate on a 30-year mortgage edged higher to 4.48 percent last week, from 4.47 percent the previous week. Mortgage rates jumped about 1.25 percentage points from May through September, peaking at 4.6 percent, after the Federal Reserve’s chairman, Ben S. Bernanke, indicated in the spring that the Fed would start to scale back its economic stimulus program before the end of the year.

Earlier this month, the Fed announced it would reduce its $85 billion in monthly purchases of Treasury and mortgage-backed securities by $10 billion a month starting in January. The bond purchases are intended to hold down longer-term interest rates and encourage more borrowing and spending.

Robert Kavcic, an economist at BMO Capital Markets, said that recent housing market indicators had been mixed. Applications for mortgages to purchase homes fell to a nearly two-year low last week, he said.

Still, Mr. Kavcic said, “We continue to believe that the U.S. housing market will absorb the upward move in mortgage rates and push higher in 2014, helped by still-attractive affordability, better job growth and improved confidence in the recovery.”

Despite the recent declines, sales of existing homes should reach 5.1 million in 2013, the highest total in seven years, the association forecast. That is 10 percent higher than 2012’s total of almost 4.7 million. But it is still below the 5.5 million that is consistent with a healthy housing market.

The association forecast that sales would remain largely flat in 2014 and then rise to 5.3 million in 2015. Steady job gains should make it easier for more people to buy homes. And mortgage rates remain low by historical standards.

Signed contracts for existing homes rose in the South and West last month, while falling in the Northeast and Midwest.

Article source: http://www.nytimes.com/2013/12/31/business/home-sales-barely-budge-indicating-stability-in-sales.html?partner=rss&emc=rss