McDonald's USA president to step down; successor named

The head of U.S. operations for McDonald's Corp. is on her way out amid the burger chain's efforts to counter intense competition and a string of uncharacteristically sour financial results.

Jan Fields will depart Dec. 1 as president of McDonald's USA, a position she has held for more than two years. She will be replaced by Jeff Stratton, currently McDonald's global chief restaurant officer. Both are 57.

"The time was right for this leadership change," company spokeswoman Lisa McComb said. She called it "a business decision by our senior management team" and said it was "not related to one isolated thing or a short-term viewpoint."

Quiz: How well do you know fast food?

McComb said Fields is "looking forward to spending time with her family and friends."

Most industry analysts doubted that Fields was directly responsible for the company's financial misses, but they believed that top management and directors had lost confidence in her ability to turn around the U.S. division of the world's biggest burger chain.

"There weren't any major alarms, any perception of management problems," said Nima Samadi, a restaurant analyst with IBISWorld. "There's no fire or even that much smoke. This looks more like a preventive measure than anything else, a recognition that McDonald's needs someone more aggressive."

Fields backed efforts to modernize the chain and make its food more healthful. But many of those programs — once considered innovative — have since been copied by competitors, and, worse, consumers' enthusiasm didn't last.

Last month, McDonald's same-store sales tumbled 2.2% in the U.S. and 1.8% globally compared with a year earlier, the company's first such slide in nine years.

The numbers spooked investors already wary over the chain's slumping profits, which fell 3.5% in the third quarter, to $1.45 billion, and sank 4.5% the previous quarter compared with the same periods last year.

Shares slipped 57 cents Thursday to $84.05. The stock has fallen more than 16% so far this year. Before this year, though, it had soared about 60% during Fields' tenure.

Analyst Andy Barish at the brokerage Jefferies & Co. recently said the stock probably would continue its decline as investors question how quickly McDonald's can regain momentum globally and in its U.S. business.

The U.S. region is the company's largest by number of restaurants; Europe is the chain's top region by sales. Five years ago, McDonald's U.S. operations accounted for 60% of the company's operating profit, a percentage that fell to 40% last year.

Analysts doubt that McDonald's can outperform last year's strong sales, which were aided by unseasonably warm weather. They also think the chain's global expansion plans and multibillion-dollar remodeling push may have stretched its cash thin.

Fields, who started out making French fries at McDonald's 35 years ago, rose through the ranks and has been called one of the world's most powerful women on lists compiled by Forbes, Fortune and other financial publications.

In 2010, she replaced Don Thompson as president of U.S. operations. Thompson became McDonald's chief executive five months ago.

Fields was credited with helping to expand McDonald's McCafe premium beverage menu, updating its restaurants, reworking the Happy Meal to be more healthful and disclosing calorie counts at the chain's 14,000 American outlets.

All were "universally successful initiatives" and often the first of their kind in the industry, analyst Samadi said.

In recent months, McDonald's rolled out its popular Monopoly promotion, pumped up Dollar Menu advertising, teased the upcoming return of the McRib and launched new products such as the higher-end Cheddar Bacon Onion sandwich.

But the Oak Brook, Ill., burger behemoth has struggled to overcome the competitive pressures that have emerged since the recession, losing ground to rivals ramping up their efforts to refresh their brands.

Burger King, for instance, unveiled a menu mirroring many of McDonald's more healthful, higher-end options, such as salads, smoothies and wraps. Wendy's, under the leadership of its new chief executive, has taken similar steps.

Coffee and breakfast chains such as Starbucks, Krispy Kreme and Dunkin' Donuts have boosted their marketing dollars, threatening to poach customers of McDonald's McCafe line.

Kids meals with toys — a McDonald's mainstay at a premium price — are losing their clout as young families pinch pennies and children turn more to digital games, according to a report this year by research firm NPD Group.

"Kids are so advanced in terms of technology that the premium that comes with a kids meal today isn't as appealing to them as it once was," NPD analyst Bonnie Riggs said.

McDonald's recent efforts to disclose more nutritional data met with mixed reactions from parents and health advocates and have become "a double-edged sword" by making it "more obvious that the food is not that good for you," said Jason Moser, an analyst with the Motley Fool.

The weaknesses have allowed upscale fast-casual brands such as Smashburger and Five Guys Burgers and Fries to draw customers away with promises of sustainably sourced ingredients and more well-rounded meals.

"For a long time, McDonald's was the only one consistently innovating and introducing new products," IBISWorld's Samadi said. "They were far and away ahead of all their competition.

"But that gap is starting to close, and now there's much less differentiation for McDonald's."

tiffany.hsu@latimes.com

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Jill Kelley, key figure in David Petraeus scandal, led lavish life

TAMPA, Fla. — When Jill Kelley believed a reporter was trespassing at her white-columned mansion in a wealthy neighborhood this week, the Tampa socialite called 911 and claimed diplomatic immunity.

"I'm an honorary consul general, so I have inviolability," an exasperated Kelley told the dispatcher in recordings released by police. "I don't know if you want to get diplomatic protection involved as well."

Kelley isn't a diplomat; she holds the ceremonial title of "honorary consul" for South Korea, one of many informal ties to prestige and power that the energetic 37-year-old mother of three has brandished to climb to the top rungs of the social ladder in this conservative military community.

Kelley, the wife of a cancer surgeon, has a thin resume, a troubled family, shaky finances and a reputation for being, as one acquaintance here put it, "Tampa Kardashian." Now she is central to an unfolding scandal that has forced out David H. Petraeus as CIA director, threatens the career of Marine Gen. John Allen, commander of U.S. and international forces in Afghanistan, and cast previously unknown figures and a sex affair into international notoriety.

Kelley's complaint to the FBI last summer that she was being harassed by email triggered the investigation that uncovered Petraeus' extramarital affair with his biographer, Paula Broadwell, author of those emails. The inquiry also uncovered what the Pentagon has called 20,000 to 30,000 pages of possibly "inappropriate communication" between Kelley and Allen, whose nomination to a prestigious assignment overseeing all NATO military has been put on hold.

Allen "intends to fully cooperate with the inspector general investigators and directed his staff to do the same," his lawyer, Col. John Baker, the chief defense counsel of the Marine Corps, said in a statement Wednesday. "To the extent there are questions about certain communications by Gen. Allen, he shares in the desire to resolve those questions as completely and quickly as possible."

The Army suspended Broadwell's security clearance, which gave her access to classified information. She is a lieutenant colonel and intelligence officer in the Army Reserve.

President Obama said at a White House news conference that he had seen "no evidence at this point" that classified information had been compromised, but noted that the FBI investigation was continuing. He praised Petraeus, who resigned Friday, for his "extraordinary career" in the military and CIA. "We are safer because of the work Dave Petraeus has done," he said.

From 2008 to 2010, Petraeus headed Central Command, which runs U.S. military operations in the Middle East, including the wars in Iraq and Afghanistan. The command is based at MacDill Air Force Base, on a spit of land that juts into Tampa Bay. The base also is home to U.S. Special Operations Command and hosts representatives from 60 nations that joined together to fight terrorism after Sept. 11, 2001.

Balmy weather, a sparkling bay and a military-friendly population have made Tampa a welcome posting for officers and a favorite spot for retirees like Gen. Norman Schwarzkopf, who led the 1991 Persian Gulf War. The late New York Yankees owner George Steinbrenner had a booth at the Palm steakhouse, where his caricature adorns the wall — along with those of two other regulars, Scott and Jill Kelley.

Life here was a step up for Jill Kelley. Born in Beirut, she moved in the mid-1970s with her family to northeast Philadelphia, where they were the "oddballs" in a mostly Irish and German neighborhood, said Kelley's brother, David Khawam. The family opened restaurants in the area, he told reporters.

Scott and Jill Kelley moved to Tampa about a decade ago when Scott, who specializes in surgery for esophageal cancer, was hired by a local hospital. In June 2004, they purchased a 5,500-square-foot red-brick home on Bayshore Boulevard in the city's ritziest neighborhood.

With her dark tresses, high-wattage smile and gregarious personality, Kelley was a natural hostess. She became known for holding Champagne-and-caviar parties on a manicured front lawn, complete with billowing white tents and valet parking. Civic leaders rubbed shoulders with military brass from MacDill, a base so crucial to the local economy that generals were treated like rock stars.

In some cases, they acted that way too.

In February 2010, Petraeus and his wife, Holly, attended their first Gasparilla Pirate Festival, a local version of Mardi Gras. He arrived at the Kelley home with a 28-motorcycle police escort and wore a long string of beads around his neck.

"They became close friends with the general," said former Tampa Mayor Pam Iorio, who was a guest at multiple Kelley bashes. "The parties were purely social. It was a way, particularly with the coalition members, to just be a gracious hostess, to say, 'We're glad you're in Tampa.' There's nothing more to it than that."

Allen and Petraeus stayed in close touch with Kelley after they left Tampa. Although it might seem odd for a general running a war to stay in touch with a hostess back home, it's not unusual in the military world, where officers and their families frequently move and need to promote good relations with community leaders.

"She was part of that social connective tissue for generals and flag officers," said one officer.

Two years ago, Kelley strapped herself into a harness and made a tandem parachute jump with Special Operations troops, another official said. She was named an "honorary ambassador" by allied countries at Central Command and even secured a pass that allowed her to enter MacDill during daylight hours without an escort. That pass was revoked this week.

Even before the scandal broke, she had begun to wear out her welcome, flooding senior officers' inboxes with emails and requests for help organizing her social functions. Her constant presence caused some officers' aides to worry about the appearance of an attractive, outgoing woman cozying up to senior military leaders.

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Erdrich wins National Book Award for fiction

NEW YORK (AP) — Louise Erdrich's "The Round House" has won the National Book Award for fiction.

Katherine Boo's "Behind the Beautiful Forevers" won the nonfiction award Wednesday night at a New York ceremony. David Ferry's "Bewilderment" won for poetry, and William Alexander's "Goblin Secrets" won for young people's literature.

Winners each received $10,000.

Honorary prizes were given to novelist Elmore Leonard and New York Times publisher and chairman Arthur O. Sulzberger Jr.

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Alzheimer’s Tied to Mutation Harming Immune Response

Alzheimer’s researchers and drug companies have for years concentrated on one hallmark of Alzheimer’s disease: the production of toxic shards of a protein that accumulate in plaques on the brain.

But now, in a surprising coincidence, two groups of researchers working from entirely different starting points have converged on a mutated gene involved in another aspect of Alzheimer’s disease: the immune system’s role in protecting against the disease. The mutation is suspected of interfering with the brain’s ability to prevent the buildup of plaque.

The discovery, researchers say, provides clues to how and why the disease progresses. The gene, known as TREM2, is only the second found to increase Alzheimer’s risk substantially in older people.

“It points very specifically to a potential metabolic pathway that you could intervene in to change the course of Alzheimer’s disease,” said William Thies, chief medical and scientific officer of the Alzheimer’s Association.

Much work remains to be done before scientists understand precisely how the newly discovered gene mutation leads to Alzheimer’s, but already there are some indications from studies in mice. When the gene is not mutated, white blood cells in the brain spring into action, gobbling up and eliminating the plaque-forming toxic protein, beta amyloid. As a result, Alzheimer’s can be staved off or averted.

But when the gene is mutated, the brain’s white blood cells are hobbled, making them less effective in their attack on beta amyloid.

People with the mutated gene have a threefold to fivefold increase in the likelihood of developing Alzheimer’s disease in old age.

The intact gene, says John Hardy of University College London, “is a safety net.” And those with the mutation, he adds, “are living life without a safety net.” Dr. Hardy is lead author of one of the papers.

The discovery also suggests that a new type of drug could be developed to enhance the gene’s activity, perhaps allowing the brain’s white blood cells to do their work.

“The field is in desperate need of new therapeutic agents,” said Alison Goate, an Alzheimer’s researcher at Washington University in St. Louis who contributed data to Dr. Hardy’s study. “This will give us an alternative approach.”

The fact that two research groups converged on the same gene gives experts confidence in the findings. Both studies were published online Wednesday in The New England Journal of Medicine. “Together they make a good case that this really is an Alzheimer’s gene,” said Gerard Schellenberg, an Alzheimer’s researcher at the University of Pennsylvania who was not involved with the work.

The other gene found to raise the odds that a person will get Alzheimer’s, ApoE4, is much more common and confers about the same risk as the mutated version of TREM2. But it is still not clear why ApoE4, discovered in 1993, makes Alzheimer’s more likely.

Because the mutations in the newly discovered gene are rare, occurring in no more than 2 percent of Alzheimer’s patients, it makes no sense to start screening people for them, Dr. Thies said. Instead, the discovery provides new clues to the workings of Alzheimer’s disease.

To find the gene, a research group led by Dr. Kari Stefansson of deCODE Genetics of Iceland started with a simple question.

“We asked, ‘Can we find anything in the genome that separates those who are admitted to nursing homes before the age of 75 and those who are still living at home at 85?’ ” he said.

Scientists searched the genomes of 2,261 Icelanders and zeroed in on TREM2. Mutations in that gene were more common among people with Alzheimer’s, as well as those who did not have an Alzheimer’s diagnosis but who had memory problems and might be on their way to developing Alzheimer’s.

The researchers confirmed their results by looking for the gene in people with and without Alzheimer’s in populations studied at Emory University, as well as in Norway, the Netherlands and Germany.

The TREM2 connection surprised Dr. Stefansson. Although researchers have long noticed that the brain is inflamed in Alzheimer’s patients, he had dismissed inflammation as a major factor in the disease.

“I was of the opinion that the immune system would play a fairly small role, if any, in Alzheimer’s disease,” Dr. Stefansson said. “This discovery cured me of that bias.”

Meanwhile, Dr. Hardy and Rita Guerreiro at University College London, along with Andrew Singleton at the National Institute on Aging, were intrigued by a strange, rare disease. Only a few patients had been identified, but their symptoms were striking. They had crumbling bones and an unusual dementia, sclerosing leukoencephalopathy.

“It’s a weird disease,” Dr. Hardy said.

He saw one patient in her 30s whose brain disease manifested in sexually inappropriate behavior. Also, her bones kept breaking. The disease was caused by mutations that disabled both the copy of TREM2 that she had inherited from her mother and the one from her father.

Eventually the researchers searched for people who had a mutation in just one copy of TREM2. To their surprise, it turned out that these people were likely to have Alzheimer’s disease.

They then asked researchers around the world who had genetic data from people with and without Alzheimer’s to look for TREM2 mutations.

“Sure enough, they had good evidence,” Dr. Hardy said. The mutations occurred in one-half of 1 percent of the general population but in 1 to 2 percent of patients with Alzheimer’s disease.

“That is a big effect,” Dr. Hardy said.

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Looming 'fiscal cliff' bringing Wall Street, Obama back together

NEW YORK — There are growing signs that Wall Street is trying to mend its rocky relationship with a president who castigated them as "fat cats" and ushered through tough new regulations after the financial crisis.

JPMorgan Chase & Co. Chief Executive Jamie Dimon has recently been in contact with the White House and congressional leaders, while Goldman Sachs CEO Lloyd Blankfein publicly called for a new "spirit of compromise and reconciliation." CEOs of 12 major American companies also held a closed-door meeting with President Obama on Wednesday.

The looming "fiscal cliff" is bringing businesses and Obama back together. Both sides are worried that Congress won't strike a deal to avoid the automatic budget cuts and tax increases that economists fear will plunge the nation into a recession early next year.

"He is the president — the election is over," said Kathryn Wylde, president and chief executive of the Partnership for New York City, a nonprofit organization that represents major financial firms and other companies. "The Wall Street community wants to unite behind a strong president."

Wall Street might have overwhelmingly supported Mitt Romney's presidential campaign with donations, but executives have been quietly working behind the scenes with administration officials for months, Wylde said.

Quiz: How much do you know about the "fiscal cliff"?

They have been helping build support for raising revenue — higher taxes — as part of a deal that would include spending cuts and entitlement reform. Getting CEOs on board could help provide "political cover" to congressional Republicans who in previous fiscal fights have thwarted deals with Obama.

"That's where their charm is real," said Jeff Connaughton, a former lobbyist and congressional aide who wrote the book "The Payoff: Why Wall Street Always Wins." "If they actually helped soften up the Republicans on being OK with raising revenue, that's where they could pile up some real brownie points with Obama."

Wall Street executives have been reaching out to both sides of the aisle now that the contentious election is over.

In an opinion piece published in the Wall Street Journal, Goldman CEO Blankfein urged corporations and the Obama administration to work closer together. He also backed tax increases for wealthy Americans so long as the government is serious about cutting government spending.

Dimon, who has sometimes been a critic of Obama, met with White House Chief of Staff Jack Lew last month. He also has reached out to congressional leaders about preventing a fiscal crisis, according to a person familiar with the matter who was not authorized to speak publicly.

As part of that charm offensive, Dimon even called Elizabeth Warren to congratulate her on being elected a U.S. senator from Massachusetts. Warren has been a fierce critic of the banking industry, and earlier this year called for Dimon to step down as a New York Federal Reserve board member because of a perceived conflict of interest.

Warren declined to comment on her phone call with Dimon. But she — like others on Capitol Hill on Wednesday — welcomed the Wall Street executives' urgency to resolve the fiscal cliff. "I think they have enormous value to add to the discussions," she said.

CEOs talking about a willingness to accept more taxes is crucial in helping to reduce the overall rancor in Washington, Sen. Charles E. Schumer (D-N.Y.) said. When Republicans start talking about additional tax revenue, "We need somebody else to have their back, and the business community is a great place" to do that, he said.

Sen. Lamar Alexander (R-Tenn.) said business leaders can help spur a deal by warning of the economic consequences of allowing the government to go over the fiscal cliff.

"The election's over and the issue is fixing the debt," Alexander said. "They can create an environment in which senators and congressman are willing to take difficult votes on fixing the debt, because it's going to be hard dirty work, very unpopular, once people see the details of it, but it absolutely has to be done."

At the White House on Wednesday, chief executives met with President Obama for more than an hour to discuss topics such as the fiscal cliff. They mostly listened and tried to give the president constructive feedback on issues facing America's biggest businesses, according to participants.

CEOs believe that the uncertainty is hurting the nation's business climate and preventing hiring. They have urged Congress to extend the tax cuts first championed by President George W. Bush. Obama wants to do so for all but the highest income earners.

Ursula Burns, the CEO of Xerox Corp., said the meeting did not get into specifics such as tax rates. But she noted that any deal would involve working through "some sticky issues."

"This is all about trying to make American business more competitive, trying to have a fair, balanced approach to tax reform, to spending cuts. And the president was very clear that he wants a fair, balanced approach," Burns told reporters after the meeting.

"We were very clear that if we can help him to get to a solution we are absolutely behind him, because going over the cliff is not something that any of us in the room could live with," she said.

andrew.tangel@latimes.com

jim.puzzanghera@latimes.com

Tangel reported from New York and Puzzanghera from Washington.

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GOP senators cool to idea of Susan Rice as secretary of State

WASHINGTON — Senate Republicans signaled stiffening resistance Tuesday to the Obama administration's possible nomination of U.N. Ambassador Susan Rice to replace Hillary Rodham Clinton as secretary of State.

GOP strategists said lawmakers would use such a nomination as an opening for an extended examination of how the administration handled the Sept. 11 militant attack on the U.S. mission in Benghazi, Libya, that killed four Americans, including the U.S. ambassador. Although the Senate rarely rejects a president's Cabinet picks, the strategists said, the process could be so painful and lengthy that Obama might come to regret his choice.

A senior Republican aide said he couldn't predict whether the nomination would be voted down, but "the question is, is this worth spending political capital and taking punches on a subject they'd like to distance themselves from?"

"Whether it's fair to her or not, she's become a poster child for perceptions that there's been a coverup by the administration," he said, speaking anonymously because he was not authorized to address the topic publicly.

Some Senate Republicans have already begun discussing how they would question Rice, he said, and plan to gather information from House Republican colleagues to bore in on questions they say the administration has not yet satisfactorily answered.

Sen. Jon Kyl (R-Ariz.), the No. 2 Senate Republican, told reporters he considered Rice "tainted" by her role in the administration's handling of Benghazi, and recommended that the White House instead choose Sen. John F. Kerry (D-Mass.), chairman of the Senate Foreign Relations Committee, whom administration officials have also been considering for the diplomatic post.

Administration officials said that Rice, a pillar of Obama's foreign policy team since the 2008 election campaign, was a leading candidate for the post, and that they would not be deterred by Republican warnings. Officials and some others familiar with the process predicted that the GOP would eventually end its resistance to Rice because it would become clear that her disputed comments after the attack were prepared by other U.S. officials for her appearances on Sept. 16 talk shows.

Rice said in those TV appearances that the attack was motivated by anger at a U.S.-made film trailer that denounced the prophet Muhammad, and that it was not a planned assault.

Sen. Bob Corker (R-Tenn.), who is expected to become the ranking minority member of the Senate Foreign Relations Committee, found it "beyond belief" that Rice could have described the attack as motivated by anger over the film, when U.S. officials in Benghazi had told officials in Washington during the attack that it was a terrorist assault.

"I still don't know how anybody of that capacity could have been on television five days later saying the things that were said," Corker said. "I don't know how that could happen."

On Sunday, Sen. Lindsey Graham of South Carolina, an influential Republican on foreign policy issues, predicted that Rice's nomination would have a difficult time making it through the Senate. He said he would not vote for Rice unless she provided more satisfactory explanations of her actions.

A single senator can hold up a nomination if he or she is determined to do so. But a more likely avenue to blocking confirmation would be with a filibuster, aides said. Sixty votes are required to end a filibuster — more than the number of senators in the Democratic caucus.

Senate aides said the Republican caucus, which is regrouping after the election defeat, might decide that shooting down Obama's choice would be a way of underscoring its unhappiness with the administration's treatment of the Benghazi issue. But historically, the Senate has deferred to presidents on Cabinet picks, and Republicans would run the risk of looking unreasonable.

Clinton's intention to leave the post has been public for more than a year, and the candidacies of Rice and Kerry have been discussed for months. Both are interested in the job.

The Washington Post reported Tuesday that Rice was the leading candidate for the diplomatic post and Kerry, a Vietnam veteran, was under consideration as secretary of Defense. If Kerry took either post, Republicans would have a chance to win his Senate seat in a special election — further narrowing the Democrats' majority.

Sources who have been familiar with past nominations say that Obama confers with only a small circle on his top choices, and sometimes emerges with surprise selections. Jim Yong Kim, Obama's choice to head the World Bank, was one such case.

As a second-term president, Obama has wide latitude to pick the candidate he believes will best serve his interests. He is under less pressure to satisfy political constituencies, some Democrats pointed out.

Jay Carney, the White House press secretary, declined to comment on the nomination, but said Obama believed Rice had done an "excellent job" at the United Nations.

paul.richter@latimes.com

Michael Memoli and Christi Parsons in the Washington bureau contributed to this report.

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RIM to release new BlackBerrys soon after Jan. 30

TORONTO (AP) — Research In Motion Ltd. will release its much-delayed BlackBerry 10 smartphones “not too long” after a launch event on Jan. 30, a senior executive said Tuesday.

Chief Operating Officer Kristian Tear said the company is still fine-tuning the new phones.

The new phones are seen as critical to RIM‘s survival as the smartphone pioneer struggles in North America to hold on to customers who are abandoning BlackBerrys for flashier iPhones and Android phones. The new BlackBerry 10 system is designed for the touch screen, Internet browsing and apps experience that customers now expect. RIM’s current software is still focused on email and messaging and is less user-friendly, agile and robust than iPhone or Android.

On Monday, RIM said details on the BlackBerry 10, including specific availability, will be announced at the event. A touch-screen-only device is expected to be released first followed shortly after by a version with a physical keyboard. Many people still gravitate to BlackBerrys specifically for their physical keyboards, and RIM hasn’t succeeded in the past with touch-only offerings.

Tear said RIM wants to be the No. 1 mobile computing platform, despite the dominance of Apple and Android. He said the Waterloo, Ontario-based company believes it can compete with Silicon Valley because it has access to a lot of talented people and two great universities in the area. He said he’s been involved in two turnarounds before with Sony Ericsson and Ericsson and believes in RIM’s new management.

“It’s not going to be easy,” Tear said. “But everybody is super-focused and super-commited. We’re going to show the world that we are turning this around.”

Steve Zipperstein, RIM’s new chief legal officer, said RIM invented the smartphone and has been the innovator in the mobile space for a long time.

“We’re not going away,” Zipperstein vowed. “We’re going to succeed with BB 10. We’re going to impress our customers. We’re going to fight every day.”

Tear and Zipperstein were hired this past summer by CEO Thorsten Heins, who took over RIM in January after it lost tens of billions of dollars in market value. Heins had vowed to do everything he could to release BlackBerry 10 this year but said in June that the timetable wasn’t realistic. The new BlackBerrys will be released after the holiday shopping season and well after Apple’s September launch of the iPhone 5.

Heins is counting on BlackBerry 10 for a turnaround.

RIM’s platform transition is happening under a new management team and as RIM lays off 5,000 employees as part of a bid to save $ 1 billion this year.

RIM was once Canada‘s most valuable company with a market value of more than $ 80 billion in 2008, but the stock has plummeted since, from over $ 140 per share to around $ 8. Its decline evokes memories of Nortel, another former Canadian tech giant, which declared bankruptcy in 2009.

RIM’s stock fell 41 cents, or 4.7 percent, to close at $ 8.40 Tuesday in New York after rising as high as $ 9.07 the previous day, when RIM announced its Jan. 30 launch date.

Gadgets News Headlines – Yahoo! News

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Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is "relieved that this painful allegation has been put to rest." He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces "Sesame Street" in New York, soon followed by saying, "We are happy that Kevin can move on from this unfortunate episode."

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from "Sesame Street" in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop "to deal with this false and defamatory allegation."

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of "Sesame Street."

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, "My Life as a Furry Red Monster," and he was the subject of the 2011 documentary "Being Elmo: A Puppeteer's Journey."

He has won 23 daytime Emmy awards and one prime-time Emmy.

___

Online:

http://www.sesamestreet.org

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Kidney Donors Given Mandatory Safeguards

ST. LOUIS — Addressing long-held concerns about whether organ donors have adequate protections, the country’s transplant regulators acted late Monday to require that hospitals thoroughly inform living kidney donors of the risks they face, fully evaluate their medical and psychological suitability, and then track their health for two years after donation.

Enactment of the policies by the United Network for Organ Sharing, which manages the transplant system under a federal contract, followed six years of halting development and debate.

Meeting at a St. Louis hotel, the group’s board voted to establish uniform minimum standards for a field long regarded as a medical and ethical Wild West. The organ network, whose initial purpose was to oversee donation from people who had just died, has struggled at times to keep pace with rapid developments in donations from the living.

“There is no question that this is a major development in living donor protection,” said Dr. Christie P. Thomas, a nephrologist at the University of Iowa and the chairman of the network’s living donor committee.

Yet some donor advocates complained that the measures did not go far enough, and argued that the organ network, in its mission to encourage transplants, has a conflict of interest when it comes to safeguarding donors.

Three years ago, the network issued some of the same policies as voluntary guidelines, only to have the Department of Health and Human Services insist they be made mandatory.

Although long-term data on the subject is scarce, few living kidney donors are thought to suffer lasting physical or psychological effects. Kidney donations, known as nephrectomies, are typically done laparoscopically these days through a series of small incisions. The typical patient may spend only a few nights in a hospital and feel largely recovered after several months.

Kidneys are by far the most transplanted organs, and there have been nearly as many living donors as deceased ones over the last decade. What data is available suggests that those with one kidney typically live as long as those with two, and that the risk of a donor dying during the procedure is roughly 3 in 10,000.

But kidney transplants, like all surgery, can sometimes end in catastrophe.

In May at Montefiore Medical Center in the Bronx, a 41-year-old mother of three died when her aorta was accidentally cut during surgery to donate a kidney to her brother. In other recent isolated cases, patients have received donor kidneys infected with undetected H.I.V. or hepatitis C.

Less clear are any longer-term effects on donors. Research conducted by the United Network for Organ Sharing shows that of roughly 70,000 people who donated kidneys between late 1999 and early 2011, 27 died within two years of medical causes that may — or may not — have been related to donation. For a small number of donors, their remaining kidney failed, and they required dialysis or a transplant.

The number of living donors — 5,770 in 2011 — has dropped 10 percent over the last two years, possibly because the struggling economy has made it difficult for prospective donors to take time off from work to recuperate. With the national kidney waiting list now stretching past 94,000 people, and thousands on the list dying each year, transplant officials have said they must improve confidence in the system so more people will donate.

The average age of donors has been rising, posing additional medical risks. And new ethical questions have been raised by the emergence of paired kidney exchanges and transplant chains started by good Samaritans who give an organ to a stranger.

Brad Kornfeld, who donated a kidney to his father in 2004, told the board that it had been impossible to find good information about what to expect, leaving him to search for answers on unreliable Internet chat rooms. He said he had almost backed out.

“If information is power,” said Mr. Kornfeld, a Coloradan who serves on the living donor committee, “the lack of information is crippling.”

Under the policies approved this week, the organ network will require hospitals to collect medical data, including laboratory test results, on most living donors to study lasting effects. Results must be reported at six months, one year and two years.

Similar regulations have been in place since 2000, but they did not require blood and urine testing, and hospitals were allowed to report donors who could not be found as simply lost.

That happened often. In recent years, hospitals have submitted basic clinical information — like whether donors were alive or dead — for only 65 percent of donors and lab data for fewer than 40 percent, according to the organ network. Although the network holds the authority, no hospital has ever been seriously sanctioned for noncompliance.

“It’s time we put some teeth into our policy,” said Jill McMaster, a board member from Tennessee.

By 2015, transplant programs will have to report thorough clinical information on at least 80 percent of donors and lab results on at least 70 percent. The requirements phase in at lower levels for the next two years.

Dr. Stuart M. Flechner of the Cleveland Clinic, the chairman of a coalition of medical societies that made recommendations to the organ network, said 9 of 10 hospitals would currently not meet the new requirement.

Donna Luebke, a kidney donor from Ohio who once served on the organ network’s board, said the new standards would matter only if enforcement were more rigorous. She noted that the organization was dominated by transplant doctors: “UNOS is nothing but the foxes watching the henhouse,” she said.

Another of the new regulations prescribes in detail the medical and psychological screenings that hospitals must conduct for potential donors. It requires automatic exclusion if the potential donor has diabetes, uncontrolled hypertension or H.I.V., among other conditions.

The new policies also require that hospitals appoint an independent advocate to counsel and represent donors, and that donors receive detailed information in advance about medical, psychological and financial risks.

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McAfee proclaims innocence, alters look to evade Belize police

In another twist to an already bizarre story, the founder of the McAfee anti-virus software company contacted an American journalist Tuesday to maintain his innocence and chronicle how he has been evading police.

John McAfee, 67, has been missing since Sunday morning, when his next-door neighbor Gregory Faull, 52, was found dead in a pool of blood in a Belize beachfront home. On Tuesday, McAfee contacted Wired contributing editor Joshua Davis and said he's on the run, scared for his life — and did not commit murder.

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Belize police on Sunday said they wanted to question McAfee in what they described as a homicide investigation.

Davis tweeted the salient details, including the former CEO saying he feared being killed in custody and — when power was cut to his hiding spot — the grim summation that "this is it."

"Under no circumstances am I going to willingly talk to the police in this country," McAfee reportedly told the editor at the technology magazine. "You can say I'm paranoid about it but they will kill me, there is no question. They've been trying to get me for months. They want to silence me. I am not well liked by the prime minister. I am just a thorn in everybody's side."

As police raided his compound Sunday, McAfee told the writer that he hid in the sand with a cardboard box over his head so he could breathe, and spent the night on a mattress infested with lice. He has continued to change locations, according to the writer's tweets.

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"It was extraordinarily uncomfortable," McAfee told Wired. "But they will kill me if they find me."

Belize police urged McAfee to come forward Tuesday, saying he is only a person of interest, rather than a murder suspect. The police said they have detained an individual but declined to discuss details, citing the ongoing investigation.

Police have a vendetta against him, McAfee told Wired, and are trying to drive him out of Belize.

McAfee made his fortune when the anti-virus company that bears his name went public in 1992. He netted $100 million two years later when he sold his stock. Over the next 20 years, $100 million dropped to $4 million as he lost money to real estate investments, bad business ventures and bonds linked to Lehman Bros.

About five years ago, McAfee moved to a beachfront compound on Ambergris Caye island to lower his taxes, said Daniel Guerrero, the mayor of the town closest to the crime scene.

Belize police arrested McAfee in April and charged him with unlicensed drug manufacturing and possession of an unlicensed weapon, according to police news releases. McAfee said at the time that he planned to sue for false arrest, alleging the police arrested him because he refused to donate money to a local official.

Last week, Faull — a retired contractor from Florida — filed a complaint against McAfee with the local city council, Guerrero said. McAfee's security guards were trespassing on Faull's property, and McAfee's guard dogs were attacking passers-by, Faull's complaint said.

Faull's two-story apartment showed no signs of forced entry. A laptop and iPhone were missing, and police found a 9-millimeter Luger shell casing on the stairs, spokesman Raphael Martinez said.

Police believe McAfee is still in the country but have had little success in tracking him down, perhaps due in part to the latest information he shared with Davis — that he has radically altered his appearance.

laura.nelson@latimes.com

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