Alcoa Reports Income of $242 Million Despite Weak Global Demand





Alcoa said on Tuesday that its fourth-quarter earnings met Wall Street’s expectations and that it expected slightly higher demand for aluminum this year.




Net income was $242 million, or 21 cents a share, including one-time gains like income from selling a hydroelectric project.


Without those gains, the company would have made 6 cents a share on revenue of $5.9 billion, meeting analysts’ expectations, according to FactSet. Sales were higher than the $5.58 billion that analysts had predicted.


A year ago, the company posted a fourth-quarter loss of $193 million, or 18 cents a share, on revenue of $6 billion, and a loss after special items of 3 cents a share.


The weak global economy has hurt industrial demand for aluminum. But Alcoa expects demand to grow 7 percent in 2013, up from a 6 percent gain in 2012. It said the best prospects were in aerospace and forecast slower improvement in the auto, packaging, and building and construction markets.


The company said it had made record profits in its aluminum-rolling and product-making businesses while cutting costs in its mining and refining, or “upstream,” segments.


Alcoa’s chief executive, Klaus Kleinfeld, said the company had overcome volatile aluminum prices and global economic weakness and was in a “strong position to maximize profitable growth” in 2013.


Alcoa is the first company in the Dow Jones industrial average to report fourth-quarter earnings. Because it makes aluminum for many major industries, investors study its results for clues about the health and direction of the overall economy.


Stock in the company, which is based in New York, closed unchanged in regular trading at $9.10 a share. In late-session trading after the earnings report was released, the stock gained 12 cents to $9.22 a share.


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Banks, regulators reach mortgage settlements









In two of the biggest civil settlements since the financial crisis, the nation's biggest banks agreed Monday to cough up nearly $19 billion to resolve federal allegations of mortgage misdeeds.


Bankers saw the settlements as a major step in providing more certainty for their balance sheets and possibly foreshadowing an end to the era of billion-dollar mea culpas and open-ended regulatory probes.


In one case, 10 banks settled with regulators for $8.5 billion. In the second, Bank of America Corp. agreed to pay almost $10.4 billion to Fannie Mae, the giant loan buyer that the U.S. seized and propped up with tens of billions of taxpayer dollars.





The deals come three years after prosecutors dropped criminal investigations against such subprime-mortgage kingpins as Countrywide Financial Corp.'s Angelo Mozilo in favor of pursuing civil fines.


"I'd have to say we're at least 75% of the way through with this process," said SNL Financial analyst Nancy Bush, arguing that it's time to concentrate on rebuilding the dysfunctional U.S. mortgage system. "The bankers are going to have to stop complaining about the government, and we'll have to stop this endless calling for someone to go to jail."


Housing advocates welcomed payouts for homeowners but asserted that the banks and bankers have gotten off easy, given the enormity of the economic damage to Main Street.


"When you think about $8.5 billion, and you know trillions of dollars in wealth have been lost by communities, it's not enough at all," said Sasha Werblin of the Greenlining Institute. "But some money is better than nothing."


The Bank of America settlement ends a bitter standoff between BofA, once the largest seller of home loans, and Fannie Mae, the nation's largest mortgage buyer.


The deal ends Fannie's demands that BofA buy back a mountain of soured loans issued by Countrywide, the high-risk Calabasas lender BofA acquired in 2008. BofA Chief Executive Brian Moynihan characterized the deal as "a significant step in resolving our remaining legacy mortgage issues."


BofA agreed to buy back $6.75 billion in residential mortgage loans sold to Fannie Mae and pay it an additional $3.6 billion in cash.


Moynihan had agreed previously to tens of billions of dollars in Countrywide-related claims. Those include shouldering the lion's share of last year's $25-billion settlement that five banks reached with the Obama administration and state attorneys general over so-called robo-signing of foreclosure paperwork and other abuses.


BofA still faces billions of dollars in claims from plaintiffs, including major insurers, the U.S. attorney's office in New York and the federal regulator overseeing Fannie Mae and fellow mortgage finance giant Freddie Mac.


But the bank has reached a tentative $8.5-billion settlement with holders of certain Countrywide mortgage bonds and another pending settlement for $2.4 million over its acquisition of Merrill Lynch & Co., also in 2008.


Because Countrywide left Bank of America with so many mortgage-related headaches, many view BofA's tangles with regulators as a barometer for the whole mortgage industry, SNL's Bush said. And as bank stock prices recovered over the last year, BofA led the way with a 109% gain for 2012.


The $8.5-million settlement with 10 banks Monday represented an acknowledgment by bank regulators that a previous attempt to review millions of foreclosures for bank wrongdoing had failed. Instead, they took a streamlined approach — the lump sum — in getting relief for troubled borrowers. Four other banks opted out of the settlement.


The settlement replaces a failed process that started in April 2011. In that arrangement, the Office of the Comptroller of the Currency and the Federal Reserve required the 14 big providers of mortgage customer service to hire consultants to review foreclosures from 2009 or 2010, potentially affecting 4.4 million borrowers. Nearly half a million borrowers signed up for the free reviews, which were supposed to lead to compensation in cases of bank misconduct.


But the consultants' tab totaled $1.5 billion as last year ended — without a single penny of relief going to borrowers. So the regulators and 10 of the banks, including mortgage giants Bank of America, Wells Fargo & Co. and JPMorgan Chase & Co., agreed to a plan for more direct aid.


The 10 banks will pay $3.3 billion to 3.8 million borrowers, who could receive amounts ranging from a few hundred dollars to $125,000 depending on evidence of wrongdoing. Reviews continue at the four banks that opted out of the new approach.


In addition, the 10 banks agreed to provide $5.2 billion in foreclosure prevention assistance to borrowers at risk of losing homes, including mortgage modifications or forgiveness of judgments against them.


Comptroller Tom Curry, the nation's top bank regulator, said the switch was a "significant change in direction." But he said it met the original objectives "by ensuring that consumers are the ones who will benefit and that they will benefit more quickly and in a more direct manner."





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Matt Dallas comes out as gay






LOS ANGELES (TheWrap.com) – Matt Dallas appeared to come out of the closet on Sunday night. The star of the former ABC Family series “Kyle XY” (2006-2009) said on his Twitteraccount that he was engaged to marry his boyfriend musician Blue Hamilton.


In addition to a picture of Hamilton lounging on a couch with a dog, Dallas tweeted the following: “Starting off the year with a new fiancé, @bluehamilton. A great way to kick off 2013!”






Dallas’ publicist did not immediately respond to TheWrap’s requests for comment.


The actor does not appear to have commented publicly on his sexuality before, but the gay news blog “After Elton” reports that Dallas was the target of Perez Hilton, who openly speculated about his sexual orientation. Hilton reportedly dubbed the star “Kyle KY,” in reference to the lubricant.


Hilton did not immediately respond to an email requesting comment on Dallas’ announcement.


Dallas’ tweet follows a string of similar low-key announcements by the likes of Frank Ocean, Zachary Quinto and Jim Parsons, who said they were gay or had relationships with men in personal blogs or as a casual aside in interviews. This trend is a sign of shifting attitudes towards homosexuality. It is in marked contrast to the media-blitz that greeted Ellen DeGeneres more than a decade ago when she announced on the cover of Time that she was a lesbian.


In addition to the supernatural show “Kyle XY,” Dallas appeared on the 2009 TV series “Eastwick” and recently joined the cast of ABC Family’s “Baby Daddy.”


Celebrity News Headlines – Yahoo! News





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Health Spending Growth Stays Low for 3rd Straight Year





WASHINGTON — National health spending climbed to $2.7 trillion in 2011, or an average of $8,700 for every person in the country, but as a share of the economy, it remained stable for the third consecutive year, the Obama administration said Monday.




The rate of increase in health spending, 3.9 percent in 2011, was the same as in 2009 and 2010 — the lowest annual rates recorded in the 52 years the government has been collecting such data.


Federal officials could not say for sure whether the low growth in health spending represented the start of a trend or reflected the continuing effects of the recession, which crimped the economy from December 2007 to June 2009.


Kathleen Sebelius, the secretary of health and human services, said that “the statistics show how the Affordable Care Act is already making a difference,” saving money for consumers. But a report issued by the Centers for Medicare and Medicaid Services, in her department, said that the law had so far had “no discernible impact” on overall health spending.


Although some provisions of the law have taken effect, the report said, “their influence on overall health spending through 2011 was minimal.”


The recession increased unemployment, reduced the number of people with private health insurance, lowered household income and assets and therefore tended to slow health spending, said Micah B. Hartman, a statistician at the Centers for Medicare and Medicaid Services.


In the report, federal officials said that total national spending on prescription drugs and doctors’ services grew faster in 2011 than in the year before, but that spending on hospital care grew more slowly.


Medicaid spending likewise grew less quickly in 2011 than in the prior year, as states struggled with budget problems. But Medicare spending grew more rapidly, because of an increase in “the volume and intensity” of doctors’ services and a one-time increase in Medicare payments to skilled nursing homes, said the report, published in the journal Health Affairs.


National health spending grew at roughly the same pace as the overall economy, without adjusting for inflation, so its share of the economy stayed the same, at 17.9 percent in 2011, where it has been since 2009. By contrast, health spending accounted for just 13.8 percent of the economy in 2000.


Health spending grew more than 5 percent each year from 1961 to 2007. It rose at double-digit rates in some years, including every year from 1966 to 1984 and from 1988 to 1990.


The report did not forecast the effects of the new health care law on future spending. Some provisions of the law, including subsidized insurance for millions of Americans, could increase spending, officials said. But the law also trims Medicare payments to many health care providers and authorizes experiments to slow the growth of health spending.


“The jury is still out whether all the innovations we’re testing will have much impact,” said Richard S. Foster, who supervised the preparation of the report as chief actuary of the Medicare agency. “I am optimistic. There’s a lot of potential. More and more health care providers understand that the future cannot be like the past, in which health spending almost always grew faster than the gross domestic product.”


Evidence of the new emphasis can be seen in a series of articles published in The Archives of Internal Medicine, now known as JAMA Internal Medicine, under the title “Less Is More.” The series highlights cases in which “the overuse of medical care may result in harm and in which less care is likely to result in better health.”


Total spending for doctors’ services rose 3.6 percent in 2011, to $436 billion, while spending for hospital care increased 4.3 percent, to $850.6 billion.


Spending on prescription drugs at retail stores reached $263 billion in 2011, up 2.9 percent from 2010, when growth was just four-tenths of 1 percent. The latest increase was still well below the average increase of 7.8 percent a year from 2000 to 2010.


Federal officials said the increase in 2011 resulted partly from rapid growth in prices for brand-name drugs.


Prices for specialty drugs, typically prescribed by medical specialists for chronic conditions, have increased at double-digit rates in recent years, the government said. In addition, spending on new brand-name drugs — those brought to market in the previous two years — more than doubled from 2010 to 2011, driven by an increase in the number of new medicines.


“In 2011,” the report said, “spending for private health insurance premiums increased 3.8 percent, as did spending for benefits. Out-of-pocket spending by consumers increased 2.8 percent in 2011, accelerating from 2.1 percent in 2010 but still slower than the average annual growth rate of 4.7 percent” from 2002 to 2008.


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Japan’s Cleanup After a Nuclear Accident Is Denounced


Ko Sasaki for The New York Times


Bags of contaminated soil outside the Naraha-Minami school near the Fukushima Daiichi nuclear power plant.







NARAHA, Japan — The decontamination crews at a deserted elementary school here are at the forefront of what Japan says is the most ambitious radiological cleanup the world has seen, one that promised to draw on cutting-edge technology from across the globe.








Ko Sasaki for The New York Times

Workers reflected in the glass of the Naraha-Minami Elementary School






But much of the work at the Naraha-Minami Elementary School, about 12 miles away from the ravaged Fukushima Daiichi nuclear power plant, tells another story. For eight hours a day, construction workers blast buildings with water, cut grass and shovel dirt and foliage into big black plastic bags — which, with nowhere to go, dot Naraha’s landscape like funeral mounds.


More than a year and a half since the nuclear crisis, much of Japan’s post-Fukushima cleanup remains primitive, slapdash and bereft of the cleanup methods lauded by government scientists as effective in removing harmful radioactive cesium from the environment.


Local businesses that responded to a government call to research and develop decontamination methods have found themselves largely left out. American and other foreign companies with proven expertise in environmental remediation, invited to Japan in June to show off their technologies, have similarly found little scope to participate.


Recent reports in the local media of cleanup crews dumping contaminated soil and leaves into rivers has focused attention on the sloppiness of the cleanup.


“What’s happening on the ground is a disgrace,” said Masafumi Shiga, president of Shiga Toso, a refurbishing company based in Iwaki, Fukushima. The company developed a more effective and safer way to remove cesium from concrete without using water, which could repollute the environment. “We’ve been ready to help for ages, but they say they’ve got their own way of cleaning up,” he said.


Shiga Toso’s technology was tested and identified by government scientists as “fit to deploy immediately,” but it has been used only at two small locations, including a concrete drain at the Naraha-Minami school.


Instead, both the central and local governments have handed over much of the 1 trillion yen decontamination effort to Japan’s largest construction companies. The politically connected companies have little radiological cleanup expertise and critics say they have cut corners to employ primitive — even potentially hazardous — techniques.


The construction companies have the great advantage of available manpower. Here in Naraha, about 1,500 cleanup workers are deployed every day to power-spray buildings, scrape soil off fields, and remove fallen leaves and undergrowth from forests and mountains, according to an official at the Maeda Corporation, which is in charge of the cleanup.


That number, the official said, will soon rise to 2,000, a large deployment rarely seen on even large-sale projects like dams and bridges.


The construction companies suggest new technologies may work, but are not necessarily cost-effective.


“In such a big undertaking, cost-effectiveness becomes very important,” said Takeshi Nishikawa, an executive based in Fukushima for the Kajima Corporation, Japan’s largest construction company. The company is in charge of the cleanup in the city of Tamura, a part of which lies within the 12-mile exclusion zone. “We bring skills and expertise to the project,” Mr. Nishikawa said.


Kajima also built the reactor buildings for all six reactors at the Fukushima Daiichi plant, leading some critics to question why control of the cleanup effort has been left to companies with deep ties to the nuclear industry.


Also worrying, industry experts say, are cleanup methods used by the construction companies that create loose contamination that can become airborne or enter the water.


At many sites, contaminated runoff from cleanup projects is not fully recovered and is being released into the environment, multiple people involved in the decontamination work said.


Makiko Inoue contributed reporting from Tokyo.



This article has been revised to reflect the following correction:

Correction: January 8, 2013

Earlier versions of this article misspelled the name of the construction company in charge of the cleanup of the city of Tamura. It is the Kajima Corporation, not Kashima.



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Trial to resume in neo-Nazi leader's slaying









The murder trial resumes Monday for a 12-year-old Riverside boy accused of shooting his father, neo-Nazi leader Jeffrey Hall, as he slept on the family's living room couch in May 2011.


The proceeding began in October with testimony that the boy coldly plotted the killing because of fears that his father planned to leave the boy's stepmother and shatter the family. Hall, an unemployed plumber, allegedly beat and berated his son during drunken rages, his wife and son told investigators.


The trial was delayed to give the prosecution's mental health expert time to assess the boy's mental state. Riverside County Superior Court Judge Jean P. Leonard had barred testimony from the prosecution's initial expert because the psychologist had taken part in a confidential interview of the boy. A new expert has been chosen and is scheduled to testify.





Chief Deputy Dist. Atty. Michael Soccio, in his opening statement, said the sandy-haired boy made a calculated decision to kill his father, making him "no different than any other murderer." The prosecutor called Hall's role as a regional director of the National Socialist Movement a "red herring" that was immaterial to the case.


On Monday, Soccio is expected to call clinical psychologist Anna Salter of Madison, Wis., to testify. Salter is a consultant to the Wisconsin Department of Corrections and has expertise in child psychology and sexual abuse.


The fate of the boy, who was 10 at the time of the shooting and has learning disabilities, comes down to whether he realized his actions were wrong when he pulled the trigger.


The boy's name is not being released by The Times because of his age. He has been charged as a juvenile. If the allegations are found to be true, he could remain in juvenile custody until he is 23.


Public Defender Matthew Hardy argued that the boy's sense of right and wrong was corrupted from growing up in a household filled with violence and hate. Neo-Nazis frequently gathered at the family home in Riverside, family trips to the shooting range were common, and loaded guns were stashed around the house.


More telling, he said, was that social service investigators never tried to remove the boy from the home after they made more than 20 visits.


"He thought his situation was normal. All this did was confuse the kid even more," Hardy said in a recent interview. "He decided to kill his dad because he wanted to end the violence, protect the family and, to some extent, be the hero."


In court, Hardy alleged that the child was manipulated to kill Hall by his stepmother, Krista F. McCary, who worried that her husband would leave her.


The boy told detectives that his plan to kill his father was influenced by an episode of the television show "Criminal Minds," which chronicles the investigations of a fictional team of FBI profilers. In the videotaped police interview, he said he saw an episode in which a boy killed his abusive father and was not arrested.


"The kid did the exact same thing I did," he told police during the interview, which was played at the trial.


The boy told police he had grabbed his father's Rossi .357 magnum revolver from a closet and went downstairs, where his father was asleep on the couch. He pulled the hammer back, aimed the gun at his dad's ear and pulled the trigger. The boy then stashed the gun under his bed.


Little about the family's stucco home near UC Riverside differed from the rest of the well-kept suburban neighborhood, though neighbors complained about Hall's occasional neo-Nazi barbecues and gatherings. Inside, police found dirty clothes strewn across floors, bedrooms smelling of urine, filthy bathrooms and beer bottles littering the downstairs, under the swastika of a National Socialist Movement flag.


"It's clear that violence is the appropriate way in his world," psychologist Robert Geffner, a witness for the defense, testified in November. "A repeated theme in conversations with him was killing. Another part of his focus was guns."


Court records suggest the boy had a history of aggression and violence after Hall and his first wife went through a bitter divorce. Both Hall and his ex-wife, Leticia Neal of Spokane, Wash., accused each other of abusing and neglecting their two children. Hall was granted full custody.


The case will be weighed by the judge, who must decide whether the child knew that his actions were wrong at the time of the shooting. If Leonard rules that the boy did not comprehend that his actions were wrong, he would be set free. If she finds the boy responsible for the murder, a hearing will be held to determine punishment.


If the boy is released, it's unclear if he would be placed with relatives or in the custody of the department of social services, Hardy said. In August 2011, the boy's stepmother was convicted of child endangerment and weapons charges and placed on four years' probation.


McCary, 27, testified earlier in that trial that the boy was violence-prone and difficult to control. Her husband abused drugs and beat the boy more than the other four children living in the home, she told the court.


McCary testified that she was not upset by the possibility that her husband was having an affair. Still, she said, she wanted to end the marriage because of her husband's mood swings.


"You were never sure which Jeff you were going to get," she said.


phil.willon@latimes.com


Times' wire services contributed to this report.





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A Google-a-Day Puzzle for Jan. 7











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

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Calvin Harris returns to top of British album chart






LONDON (Reuters) – Scottish producer and singer Calvin Harris returned to the top of the British album charts with “18 Months” in the first week of 2013, the Official Charts Company said on Sunday.


The release, his third studio album, had hit the number one spot on its debut in November, and climbed from seventh place to regain the best sellers’ crown.






Singer Emeli Sandé slipped one notch to number two with “One Version of Events”, while Ed Sheeran jumped to third place from number 13 with his debut album “+”, now in its 69th week in the charts.


James Arthur, winner of the British version of the “X Factor” TV talent show last year, held onto first place in the singles rankings with “Impossible”.


“Scream and Shout” by U.S. producer will.i.am, featuring Britney Spears, stayed at number two, while Korean singer Psy’s global video hit “Gangnam Style” held steady in third place.


(Reporting by Tim Castle; Editing by Jason Webb)


Music News Headlines – Yahoo! News





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Alarm in Albuquerque Over Plan to End Methadone for Inmates


Mark Holm for The New York Times


Officials at New Mexico’s largest jail want to end its methadone program. Addicts like Penny Strayer hope otherwise.







ALBUQUERQUE — It has been almost four decades since Betty Jo Lopez started using heroin.




Her face gray and wizened well beyond her 59 years, Ms. Lopez would almost certainly still be addicted, if not for the fact that she is locked away in jail, not to mention the cup of pinkish liquid she downs every morning.


“It’s the only thing that allows me to live a normal life,” Ms. Lopez said of the concoction, which contains methadone, a drug used to treat opiate dependence. “These nurses that give it to me, they’re like my guardian angels.”


For the last six years, the Metropolitan Detention Center, New Mexico’s largest jail, has been administering methadone to inmates with drug addictions, one of a small number of jails and prisons around the country that do so.


At this vast complex, sprawled out among the mesas west of downtown Albuquerque, any inmate who was enrolled at a methadone clinic just before being arrested can get the drug behind bars. Pregnant inmates addicted to heroin are also eligible.


Here in New Mexico, which has long been plagued by one of the nation’s worst heroin scourges, there is no shortage of participants — hundreds each year — who have gone through the program.


In November, however, the jail’s warden, Ramon Rustin, said he wanted to stop treating inmates with methadone. Mr. Rustin said the program, which had been costing Bernalillo County about $10,000 a month, was too expensive.


Moreover, Mr. Rustin, a former warden of the Allegheny County Jail in Pennsylvania and a 32-year veteran of corrections work, said he did not believe that the program truly worked.


Of the hundred or so inmates receiving daily methadone doses, he said, there was little evidence of a reduction in recidivism, one of the program’s main selling points.


“My concern is that the courts and other authorities think that jail has become a treatment program, that it has become the community provider,” he said. “But jail is not the answer. Methadone programs belong in the community, not here.”


Mr. Rustin’s public stance has angered many in Albuquerque, where drug addiction has been passed down through generations in impoverished pockets of the city, as it has elsewhere across New Mexico.


Recovery advocates and community members argue that cutting people off from methadone is too dangerous, akin to taking insulin from a diabetic.


The New Mexico office of the Drug Policy Alliance, which promotes an overhaul to drug policy, has implored Mr. Rustin to reconsider his stance, saying in a letter that he did not have the medical expertise to make such a decision.


Last month, the Bernalillo County Commission ordered Mr. Rustin to extend the program, which also relies on about $200,000 in state financing annually, for two months until its results could be studied further.


“Addiction needs to be treated like any other health issue,” said Maggie Hart Stebbins, a county commissioner who supports the program.


“If we can treat addiction at the jail to the point where they stay clean and don’t reoffend, that saves us the cost of reincarcerating that person,” she said.


Hard data, though, is difficult to come by — hence the county’s coming review.


Darren Webb, the director of Recovery Services of New Mexico, a private contractor that runs the methadone program, said inmates were tracked after their release to ensure that they remained enrolled at outside methadone clinics.


While the outcome was never certain, Mr. Webb said, he maintained that providing methadone to inmates would give them a better chance of staying out of jail once they were released. “When they get out, they won’t be committing the same crimes they would if they were using,” he said. “They are functioning adults.”


In a study published in 2009 in The Journal of Substance Abuse Treatment, researchers found that male inmates in Baltimore who were treated with methadone were far more likely to continue their treatment in the community than inmates who received only counseling.


Those who received methadone behind bars were also more likely to be free of opioids and cocaine than those who received only counseling or started methadone treatment after their release.


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