Beljan nearly passes out on his way to the lead

LAKE BUENA VISTA, Fla. (AP) — Charlie Beljan was worried about keeping his PGA Tour card when he showed up at Disney for the final tournament of the year. That changed Friday over five frightening hours when he felt a shortness of breath and his heart racing, and eventually told his caddie that he thought he was going to die.

His chest heaved. He called for paramedics at the turn and was told his blood pressure was not good. He sat in the middle of the fairway to rest and kneeled on the green to try to steady himself.

In one of the most remarkable rounds of the year, the 28-year-old rookie fought through it for an 8-under 64 to take a three-shot lead.

Moments after signing his card, Beljan was loaded onto a stretcher. His eyes were shut, his head tilted back — still wearing his visor — and his arms were folded across his stomach as paramedics loaded him into an ambulance parked beyond the 18th green at the Palm Course.

"I think he was scared," said his caddie, Rick Adcox. "He kept saying he thought he was going to die. He just had that feeling. I don't know why. But it was spooky."

A few hours later, his agent sent a text to PGA Tour officials from Celebration Hospital that Beljan was waiting on tests, feeling better and hopeful of being discharged from the hospital Friday evening. In a later text, agent Andy Dawson said even if Beljan remained in the hospital overnight, he still planned to play the third round.

Beljan was in the lead for the first time after any round going into the weekend at the Children's Miracle Network Hospitals Classic. It could not have come at a better time because he is No. 139 on the money list, and only the top 125 keep their full cards for next year.

The tour said Beljan complained of an elevated heart rate, shortness of breath and heart palpitations. Adcox said Beljan told him of numbness in his arms and he felt like he was going to faint.

"I thought they were going to stop him on 10 when they told him what the blood pressure was," he said. "He just said, 'I'm going to keep going until either I pass out or they take me off.' I kept saying, 'It doesn't matter to me. It's only a golf tournament. You've got many more.'"

The struggle was painfully clear the way Beljan constantly stooped over with his hands on his knees, backed off shots and tried to take deep breaths. That he wound up in the lead at 12-under 132 was simply amazing.

"It was bizarre," said Edward Loar, who played with Beljan. "I don't know if he thought he was going to make it. It sure didn't affect his golf. I heard him call for a paramedic on No. 9. Before the round, he said he was having a hard time breathing. Hopefully, the guy was all right. He was having a hard time breathing in there."

Beljan had a three-shot lead over seven players, including Henrik Stenson, Harris English, Charles Howell III and first-round leader Charlie Wi. He likely would need to finish in about 10th place to move into the top 125 and keep a job for next year — assuming he can even play.

Golf didn't seem to be a big priority across from the Magic Kingdom, and there were concerns Beljan would even finish his round.

"I thought a lot of times he was going to stop," Adcox said. "I didn't even think he was going to start. He asked me to go find a doctor at the beginning, and I did. The paramedics ... were on No. 10 waiting on him. Blood pressure wasn't good then. For him to go on, that was pretty much his decision.

When he did get over a shot, the outcome generally was superb.

"He hit four of the best iron shots I've seen on the par 5s," Loar said. "It was awesome to watch."

Adcox realized something wasn't right when Beljan called for a doctor on the practice range. He drilled his long second shot onto the green at the par-5 first hole, and when the caddie handed him a putter, he said Beljan told him, "I don't feel very good."

"He got up there and made the eagle and still said he didn't feel good," Adcox said. "It's been not good all day. The score was good."

The caddie said they didn't pay attention to the score Beljan was putting together, and because they were playing on the Palm Course that doesn't have many leaderboards, they didn't even know Beljan was in the lead until the round was over.

They simply started a countdown — one more hole, one more shot.

Beljan had two eagles and played the par 5s in 6 under. He struggled to finish, picking up a bogey on the 17th and missing the green to the right on the 18th. Facing a difficult chip, made even tougher that he looked wobbly over the ball, he hit a beautiful shot to 4 feet to save par.

The final two rounds move to the tougher Magnolia Course, which effectively feels like the final stage of Q-school for some of the players. Matt Jones and Mark Anderson, in that group at 9-under 135, can avoid going to the second stage of Q-school. Wi needs a win to have any hope of getting into the Masters. English is going for his first win.

Rod Pampling will have to sweat out his future at home in Dallas for the second straight year. He is No. 124 on the money list, made bogeys on the 16th and 17th holes and missed the cut by one shot. All that helps Pampling is that Billy Mayfair, who is No. 125 on the money list, also missed the cut, as did Gary Christian at No. 127.

Kevin Chappell was at No. 123, but he put together another solid round and suddenly is only four shots out of the lead. His card would appear to be safe.

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Black Friday Deals Will Start Earlier This Year


There was an outcry last year when some retailers opened at midnight on Thanksgiving, with workers and shoppers saying the holiday should be reserved for family, not spent lining up for the start of the Christmas shopping season.


This year, retailers are responding to the criticism by opening even earlier on Thanksgiving evening — and a handful are even planning to be open all day.


The lesson of 2011 was clear: earlier shopping hours were good for the top line. Retailers said their midnight openings drew a younger crowd who wanted to party — and shop — late rather than get up early. At Macy’s Herald Square store in Manhattan, for instance, about 9,000 people were in line as it opened, compared with 7,000 for an early Friday opening the previous year.


“We got customer feedback that says, ‘I like to shop earlier so I can go to bed earlier,’ so as we looked at the balance of being competitive in the marketplace and being customer-centric,” said Duncan Mac Naughton, chief merchandising and marketing officer for Wal-Mart, which will put its first doorbuster items on sale at 8 p.m. on Thanksgiving.


Just a few years ago, most major stores opened about 5 a.m. on the Friday after Thanksgiving, usually the busiest shopping day of the year. This year, not only are the openings scattered across two days, but several retailers are offering staggered deals — some items at a certain time, other items a few hours later, still others over the weekend.


“We had Black Friday pretty cleanly teed up, with, here are the ads, here are the stores opening Friday morning, pick a retailer and go,” said Brad Wilson, who lists Black Friday ads at BradsDeals. “Now you have this multiday affair, and you can go at different times.”


Kmart has perhaps the most confusing hours. Like last year, it will open at 6 a.m. on Thanksgiving. It will then stay open until 4 p.m., close from 4 to 8 p.m., reopen at 8, stay open until 3 a.m. on Friday, close from 3 to 5 a.m., reopen at 5, and then stay open until 11 p.m. on Friday.


Sears, which was closed on Thanksgiving last year, will open at 8 p.m. on Thursday night.


Sears Holdings, which owns both Sears and Kmart, said in a news release that customers wanted “more flexible Black Friday in-store shopping times.”


Lord & Taylor was closed last year on Thanksgiving, but this year it will be open from 10 a.m. to 7 p.m.


Walmart, which is generally open 24 hours anyway, is offering the first deals on Thanksgiving two hours earlier than last year. Mr. Mac Naughton said customer feedback and competitiveness with other retailers were factors.


Target, which last year got angry feedback from employees when it opened at midnight on Thanksgiving, this year moved it up three hours to 9 p.m., according to a holiday circular posted online on Friday.


Some workers object to Thanksgiving Day holiday openings, saying it cuts into family time. It shows “disregard for all of our families,” said Mary Pat Tifft, a Walmart employee in Kenosha, Wis., who is part of the union-backed OUR Walmart group, in a statement. But in many cases, it can also mean a higher hourly pay rate for holiday duty.


Now, the handful of retailers who are holding off until midnight on Thanksgiving suddenly look like the respectful ones.


“We believe that Thanksgiving Day is a time to spend and celebrate with family, and we want our associates to do so,” said Jim Sluzewski, a spokesman for Macy’s, which will open at midnight. Kohl’s will also open at midnight Thanksgiving, as will Best Buy, according to a circular posted online Friday.


Companies are also sprinkling sales throughout the weekend in an effort to keep traffic coming.


After its initial 8 p.m. sale, Walmart will put another set of items on sale at 10, and a third group at 5 a.m. Friday. “Whether they like to start early, stay up late, or go to bed early and get up early, we’re going to have three different events that will meet their needs,” Mr. Mac Naughton said. Then, Walmart will “kick off a weekend full of savings with more specialty offers” on items like jewelry, sewing machines and tools.


Target, after its 9 p.m. doorbuster special, will offer a free gift card for purchases made between 4 a.m. and noon on Friday, according to the circular posted on Mr. Wilson’s site and elsewhere. (Target declined to confirm the authenticity of the circular, saying it had not yet publicly announced holiday details.)


Sears will do a second wave of promotions at 4 a.m. on Friday, eight hours after it opens. Sports Authority will do some doorbusters at its midnight opening, then put numerous others on sale over the weekend. And Ace Hardware is offering different percentages or dollars off, on Friday, Saturday and Sunday.


Mr. Wilson of BradsDeals says the retailers may be intentionally trying to confuse shoppers. “They’re trying to introduce more variables,” he said, to make it harder to figure out exactly which is the best deal.


All of the twists and turns, though, may just end up frustrating consumers.


Only 6 percent of shoppers plan to hit stores on Thanksgiving night, and just under one-fifth will go to stores on Black Friday, according to a new survey from Ipsos and Offers.com, accurate within three percentage points.


At least one major retailer is going against the grain. Sam’s Club, which last year opened at 5 a.m. on Black Friday, this year is opening two hours later, at 7 a.m., and offering coffee and pastries to shoppers.


“If they want to chill out on Thanksgiving day and not go out and get into the rat race of everything, they can do that,” said Todd Harbaugh, executive vice president for operations at Sam’s Club. “Our members said they want hassle-free shopping.”


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Advertising: Help Remedies Tries to Cure Ailments in Small Doses





DISAPPOINTED voters, runners with blisters and headache sufferers alike are getting some unexpected relief from a pop-up pharmacy that opened this week in the nation’s capital.




The “help shop,” which offers low-dose drugs for everyday woes, is the idea of Help Remedies, a start-up company that sells minimalist white packets directed at single medical issues like nausea, headache or insomnia.


The company, the collaboration of two marketers, is creating quirky scenes including a high-heel wearing model walking on a treadmill to market its “Help, I have a blister” packet of bandages, or a performer sleeping in a store window to drum up interest for its “Help, I can’t sleep” caplets.


This week, shoppers and passers-by attracted by the napper, for example, could go inside the temporary pharmacy to investigate its 10 over-the-counter remedies for conditions like body aches and allergies.


The store’s team fanned out to polling stations on Tuesday to hand out its headache packets, and then on Wednesday to the nearby Republican National Committee to share nausea relief. Their marketing may be seen as fun and zany, but the company founders, Richard Fine and Nathan Frank, say they have a serious message.


“We want people to see that there are simple solutions,” said Mr. Fine, who said his straightforward approach was influenced by his parents, who are medical professors specializing in epidemiology.


“Most people shop by brand or product, and it’s difficult to know what you should be buying and taking,” he said. “It is a confusing space for people who are not experts.”


Mr. Fine and Mr. Frank, who met while working in branding and advertising, decided to try to streamline what they see as an antiquated and cluttered pharmaceutical market.


“We wanted to take what’s basic and works, and make it human,” Mr. Fine said. Their strategy of providing single ingredients in low dosages is aimed at basic medical conditions that do not require hospitalization.


After starting the company in 2008, they consulted pharmaceutical sources to zero in on the drugs and dosages to use. Their “Help, I have a headache” formulation, for example, contains 325 milligrams of acetaminophen per caplet.


“That is less than the amount in an extra strength caplet,” said Mr. Fine. “If you need more, you can take more. But this is what pharmacists recommend.”


By that summer, Help Remedies was distributing its packets in some high-end hotel chains and business conferences. In 2009, the two men quit their jobs and started the company Web site, helpineedhelp.com, which includes a link to drug facts for each product.


To carve a niche in the crowded pharmaceutical market, Mr. Frank, who handles the company’s creative efforts, said he focused on offbeat marketing, including tactile packaging and performance windows, and viral videos that mixed up the serious, the absurd and even the goofy.


For the packaging, Mr. Frank settled on a flat, white, textured box that opens like a tin. Taking a page from product designers like Apple, he settled on a simple font called century schoolbook, in various colors.


The graphic work was originally done by ChappsMalina and Little Fury, design firms in New York, and was since updated by another firm, Pearlfisher.


Help Remedies, a privately held company, did not disclose its advertising spending, which was $400 in 2010 and $12,500 last year, according to figures from Kantar Media, a WPP unit.


With a small budget, the company has focused on spinning out lighthearted solutions to situations — like countering boredom by focusing on a bouncing ball or hangovers by staring at a rag — on its Web site, videos, bus shelters and other advertising and in the store windows of Ricky’s, a New York beauty supply company.


Help Remedies set up “living windows” like “Help, I’ve never been kissed,” with models on hand to give hugs and kisses in Ricky’s storefronts. There were also serious problems like “Help, I want to save a life,” that provided registration kits from the bone marrow donor center DKMS.


To expand, the company is adapting the living window approach to its first pop-up pharmacy, in Washington, which was delayed by Hurricane Sandy and got under way as the election results were unfolding.


In addition to giving “Help, I have a headache” packets to anyone who asked, the store manager, Melinda Welch, and her staff distributed 2,000 packets — for blisters and for body aches — to participants in the annual High Heel Race.


The company’s products are found in major pharmacy outlets like Duane Reade and CVS, as well as Target and Walgreens. Last year, the company reached $4 million in sales and is set to expand after Washington to San Francisco; Seattle; Portland, Ore.; Austin, Tex.; Chicago; and Miami.


As part of its expansion, the Washington store plans to hold a “Help, I am Insecure” event on Saturday with a life coach to provide support and advice, and a manicurist for those insecure about their nails, Ms. Welch said.


Other events at later dates include “Help, I am Lonely,” with an online dating site consultation, and “Help, I’m in an Argument with my Spouse,” with a relationship judge to settle differences.


William G. Daddi, the president of Daddi Brand Communications, said Help Remedies’s distinct packaging was well suited to compete in the crowded health and beauty market.


But he warned that tying so many products to whimsical marketing carried risks because “there will be consumer confusion and the remedies will be seen as novelty products.”


“To build a true brand, the consumer needs to see that the product is effective,” Mr. Daddi said. “There needs to be a link to tangible outcomes so people see that the product works.”


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A Transfer of Power Begins in China

Military delegates arrived for the 18th Communist Party Congress at the Great Hall of the People in Beijing on Thursday. The weeklong meeting precedes the naming of China’s top leader, who will replace Hu Jintao. The meeting also introduces a new generation of party leaders.
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Exclusive: Google Ventures beefs up fund size to $300 million a year

SAN FRANCISCO (Reuters) - Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.


Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.


It puts the firm on the same footing as more established corporate venture funds such as Intel's Intel Capital, which typically invests $300-$500 million a year.


"It puts a lot more wood behind the arrow if we need it," said Bill Maris, managing partner of Google Ventures.


Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.


Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.


Every year, it typically funds 40-50 "seed-stage" deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.


LACKING SUPERSTARS


Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.


Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm's recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.


Soon it could have even more cash to play around with. "Larry has repeatedly asked me: 'What do you think you could do with a billion a year?'" said Maris, referring to Google chief executive Larry Page.


(Editing by Muralikumar Anantharaman)


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No. 8 Seminoles rally to beat Hokies 28-22

BLACKSBURG, Va. (AP) — E.J. Manuel hit Rashad Greene with a slant pass that Greene took 39 yards for a touchdown with 40 seconds to play and No. 8 Florida State survived a scare to beat Virginia Tech 28-22 on Thursday night.

The Seminoles (9-1, 6-1 Atlantic Coast Conference) won their fourth straight and moved within a victory against Maryland on Nov. 17 of securing a spot in the ACC championship game Dec. 1.

The Hokies (4-6, 2-4) lost for the fifth time in six games and will have to beat Boston College and Virginia in their final regular season games to qualify for a bowl game for the 20th straight year.

The Hokies had gone ahead 22-20 on Cody Journell's 21-yard field goal with 2:19 remaining. The kick capped a 52-yard drive that stalled when Logan Thomas ran for 2 yards on third-and-3 from the 6.

The Hokies limited the Seminoles to 311 yards, more than 200 below their average for the season, and gained possession leading to the go-ahead field goal with a stellar defensive series.

After the Seminoles took over at their 20, Manuel threw incomplete on first down and James Gayle sacked him for a 10-yard loss on second down. A delay of game penalty moved the ball back to the 5 and, when the Seminoles tried running Devonta Freeman to the left, Jack Tyler caught him from behind in the end zone. Freeman tried to throw it, an illegal forward pass, and the safety pulled the Hokies to 20-19.

It also gave them the ball, but when they only managed a field goal, the Seminoles made them pay.

Limited to minus-15 rushing yards for the game, they got 7 from James Wilder Jr. on a fourth-and-1 play from their 41, and Manuel hit Greg Dent for 13 yards two plays later. After Manuel threw a pass away under pressure, he hit Greene on a short slant against a zone defense and Greene took it all the way.

The Seminoles opened a 20-10 lead with a 49-yard touchdown drive after recovering a fumble by Hokies wide receiver Marcus Davis. Manuel completed three passes on the six-play drive, including a 10-yard bullet to Greg Dent in the back of the end zone with 6:53 left in the third quarter.

Virginia Tech replied quickly, driving 80 yards in eight plays. Thomas hit Corey Fuller for 44 and 14 yards on the drive, and ran it in himself from the 5, bulling over several defenders.

The game was delayed for about 10 minutes in the third quarter when Virginia Tech safety Michael Cole was hurt and lay face-down and motionless on the field. As the crowd stood in silence, Cole was taken away by ambulance. The school said he had a neck sprain, but had feeling and movement in his extremities.

The Seminoles arrived with the nation's No. 3 scoring offense, averaging nearly 45 points, but the Hokies neutralized it for the first 27 minutes, allowing just a pair of field goals by Dustin Hopkins.

The Seminoles twice started drives near midfield early, and got nothing out of them. The first ended with Donovan Riley's interception of Manuel's pass at the 1, and the second with a three-and-out punt.

But after Thomas drove Virginia Tech 68 yards for the game's first touchdown, giving the Hokies a 10-6 lead, Manuel and the Seminoles — held to zero yards at that point in the second quarter — clicked.

Manuel hit Kevin Benjamin for 12 and 17 yards, and then Greene beat Kyle Fuller twice — for 22 and 25 yards — to finish a five-play, 71-yard drive in 1:58 to give Florida State a 13-10 lead.

On the Hokies' drive, Thomas connected with Fuller's older brother, Corey, on three third-down plays. The first went for 33 yards on third-and-9, the second for 15 yards on third-and-4 and the last for 4 yards and the touchdown on a perfectly thrown third-and-2 fade to the right corner of the end zone.

Florida State took a 6-3 lead after Tyler Hunter intercepted Thomas' pass at the Hokies 34. Virginia Tech had a chance to tie when it recovered a punt that was fumbled by Hunter at the Seminoles 30 on the next possession, but three plays netted only 4 yards and Cody Journell's 43-yard field goal was wide left.

___

Follow Hank on twitter at: http://twitter.com/hankkurzjr

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Debt Ceiling Complicates a Tax Shift





WASHINGTON — Come January, should Congress fail to act, the United States will face more than immense tax increases and spending cuts. It will also run out of room to finance its large running deficits.




The Treasury Department expects the country to hit its debt ceiling, a legal limit on the amount the government is allowed to borrow, close to the end of the year. That would give Congress only a matter of weeks to raise the ceiling, now about $16.4 trillion, before sending financial markets into a panic.


Congressional leaders have made clear that the debt ceiling will be part of the intense negotiations over the so-called fiscal cliff, with many members unwilling to raise the ceiling without a broader deal. That has raised financial analysts’ worries of a financial market panic over the ceiling in addition to the slow bleed of the tax increases and spending cuts.


Congressional action is required to raise the debt limit. The Treasury can jostle payments for a few months. But expenses will eventually overwhelm revenue, putting the administration in the position of choosing which bills to pay. It might stop paying soldiers, for instance, or sending Social Security payments.


In 2011, Congressional Republicans would not raise the debt ceiling without a broader agreement to cut the country’s deficit and set it on a better fiscal path. The impasse over finding spending cuts and tax increases to do that led to the creation of the spending cuts on Jan. 1, the same time the Bush-era tax cuts were set to expire.


The threat that the country might not pay all its bills caused a slump in financial markets and led in August 2011 to the first downgrade of the nation’s credit rating. It left broader economic scars, too. Many economists contend it hurt economic growth and jobs.


A July report by the Government Accountability Office found that the delay in raising the debt limit increased the country’s borrowing costs by about $1.3 billion in the 2011 fiscal year. “However, this does not account for the multiyear effects on increased costs for Treasury securities that will remain outstanding after fiscal year 2011,” the report noted, adding that the debt-limit fight diverted Treasury’s time and resources from other priorities.


This year, Congress will have time to negotiate a broader debt deal before needing to raise the ceiling, even if negotiations spill into January. But the ceiling will be a card in the complex political game that the White House, Senate Democrats and Congressional Republicans are playing.


Much as Democrats see President Obama’s veto threat over an extension of the Bush-era tax cuts for the highest earners as leverage over Republicans, some Republicans see the need to raise the debt ceiling as leverage over the White House, Republican aides said.


Even if the stakes do not get that high, both parties view lifting the debt ceiling as part of the fiscal-cliff negotiations, and they do not expect Congress to raise it outside of a broader deal.


“Resolving the issues surrounding the fiscal cliff, especially the replacement of the sequester, and the next debt limit increase (likely necessary in February) will require that the president get serious about real entitlement reform,” Representative Eric Cantor of Virginia, the House majority leader, said in a letter to conservatives this week, as printed on The Hill Web site.


That has Democrats warning Republicans not to risk the country’s credit rating and broader financial stability again.


“They tried it before: ‘We’re going to shut down the government. We’re not going to raise the debt limit,’ ” Senator Harry Reid of Nevada, the majority leader, told reporters this week. “They want to go through that again? Fine, but we’re not going to be held subject to something that was done as a matter of fact in all previous administrations.”


Economists have warned that the political posturing over the debt ceiling has enormously dangerous economic consequences — even more so than last year, given the threat of huge tax increases and spending cuts hitting households at the same time.


On Wall Street, analysts have tended to use terms like “apocalypse” and “global catastrophe” to describe what might happen should Congress not lift the ceiling.


This week, Fitch, the credit rating agency, threatened a downgrade to the nation’s credit rating if Congress cannot find a timely resolution.


“Failure to reach even a temporary arrangement to prevent the full range of tax increases and spending cuts implied by the fiscal cliff and a repeat of the August 2011 debt ceiling episode would mean that the general election had not resolved the political gridlock in Washington and likely result in a sovereign rating downgrade by Fitch,” analysts at the agency said in a statement on Wednesday.


HSBC analysts this week warned clients of “echoes of 2011” in the uncertainty and market volatility the ceiling might cause.


And economists at the International Monetary Fund cautioned that the unstable situation in the United States might have international ripple effects.


“For now, a lack of political agreement keeps uncertainty about the fiscal road map unresolved,” the fund said in a global risk assessment. “Although bond yields remain low, when contentious political decisions — such as raising the debt ceiling — have come due in the past, uncertainty about the outcome led to unfavorable market reactions.”


But other analysts said they would be surprised if the debate over the ceiling became the debacle it did last year. Many Congressional aides said neither side had any interest in causing market panic for political gain.


“Markets are now starting to become the disciplinarians,” said Diane Swonk, chief economist at Mesirow Financial in Chicago. “C.E.O.’s are finally stepping up to the plate and saying, ‘Excuse me, we can’t do this.’ And that puts political donations and jobs on the line.”


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After Loss, Fight to Label Modified Food Continues





LOS ANGELES — Advocates for the labeling of genetically modified food vowed to carry their fight to other states and to the federal government after suffering a defeat in California on Tuesday.




A ballot measure that would have made California the first state in the nation to require such labeling was defeated, 53.1 percent to 46.9 percent. Support for the initiative, which polls said once was greater than 60 percent, crumbled over the last month under a barrage of negative advertisements paid for by food and biotechnology companies.


The backers of the measure, known as Proposition 37, said on Wednesday that they were encouraged it had garnered 4.3 million votes, even though they were outspent about five-to-one by opponents. They are now gathering signatures to place a similar measure on the ballot in Washington State next year.


Declaring that more than four million Californians are “on record believing we have a right to know what is in our food,” Dave Murphy, co-chairman of the Proposition 37 campaign and executive director of Food Democracy Now!, an advocacy group, said on Wednesday: “We fundamentally believe this is a dynamic moment for the food movement and we’re going forward.”


Still, there is no doubt the defeat in California has robbed the movement of some momentum. Until Tuesday’s vote, labeling proponents had been saying that a victory in California, not a defeat, would spur action in other states and at the federal level.


The defeat greatly reduces the chances that labels will be required, according to L. Val Giddings, a senior fellow at the Information Technology and Innovation Foundation, a Washington organization supporting policies that favor innovation. “I see little potential that the defeat in California could result in any increase in pressure for labels. ”


Dr. Giddings, who is a supporter of biotech crops, said it would now be more difficult for labeling proponents to raise money. “What justification can they present to their funders to pour more money down this drain?” he said.


The election in California was closely watched because it had national implications. It could have led to a reduction in the use of genetically modified crops, which account for more than 80 percent of the corn, soybeans and sugar beets grown in the United States. That is because food companies, fearing that some consumers would shun products labeled genetically engineered, would instead reformulate their products to avoid such ingredients.


With so much at stake, food and biotechnology companies amassed $46 million to defeat the measure, according to MapLight, an organization that tracks campaign contributions. Monsanto, the largest supplier of genetically engineered seeds, contributed $8.1 million. Kraft Foods, PepsiCo and Coca-Cola each contributed at least $1.7 million.


The backers of Proposition 37 raised only $9.2 million, mainly from the organic and natural foods business.


The proponents argued that people have a right to know what is in their food. They said that genetically engineered crops have not been adequately tested and that dozens of countries require labeling.


The Food and Drug Administration does not require labeling of a food just because it is genetically modified, saying there is no material difference between such foods and their conventional counterparts.


The big food and biotechnology companies argued that numerous expert reviews have shown the crops to be safe. For the most part, they did not directly attack the notion of consumers’ right to know. Rather they said Proposition 37 was worded in a way that would lead to red tape, increases in food prices and numerous lawsuits against food companies and supermarkets.


Some backers of labeling will shift their focus to Washington, hoping to get the F.D.A. to change its mind and require labeling.


“We think that attention is now going to shift back to Washington, with a whole lot more to discuss and a whole lot more people interested,” said Gary Hirshberg, the chairman of Stonyfield, an organic yogurt company.


Mr. Hirshberg is also chairman of Just Label It, a group that submitted a petition with more than one million signatures to the F.D.A. asking it to require labeling. So far, however, the F.D.A. has shown little propensity to overturn its policy. And bills in Congress to require labeling have failed to gain much support.


Proposition 37 has no doubt raised awareness, however, which might prompt some consumers to seek foods that do not contain genetically engineered ingredients.


“Everything you buy in the grocery is a vote,” said Sara Hadden of Hermosa Beach, who organized street-corner rallies in favor of Proposition 37. “That’s the vote that really counts.”


One question is whether food firms, having narrowly escaped a disruption of their business on Tuesday, will make changes on their own — like voluntarily labeling or reducing their use of genetically modified crops.


If that is being considered, the food companies are not letting on. In a statement Wednesday, the Grocery Manufacturers Association, which represents big food companies, called the defeat of Proposition 37 “a big win for California consumers, taxpayers, businesses and farmers.”


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China Prepares for Party Congress and Leadership Transition


Diego Azubel/European Pressphoto Agency


Soldiers marched past the Great Hall of the People in Beijing on Wednesday, on the eve of the 18th Communist Party Congress.







BEIJING — China’s Communist Party leader, Hu Jintao, defended his decade in power on Thursday and warned that the country faced stark challenges at home and abroad. He spoke at the start of a congress that will culminate in his retirement and the appointment of a new generation of leaders after a transition marked by scandal and anxiety about the party’s future.




Mr. Hu told the ranks of party-picked delegates assembled in the Great Hall of the People that China faced a period of major change and “complicated domestic and international circumstances.” Seated near him was his presumed successor, Xi Jinping, who is all but certain to take over as party chief after the congress ends next week and to take the reins as president in March.


Mr. Xi has privately signaled that he is aware of increasingly urgent calls from economists, intellectuals and some party insiders for a new round of market liberalization and even measured political relaxation to cure what they see as a deepening economic and social malaise. Mr. Hu acknowledged the problems facing the party, including corruption, but avoided specific mention of the scandals that have blighted his final year in power.


“Currently, the conditions of the world, the country and the party are continuing to undergo profound changes,” he said, reading from excerpts from his report to the party congress, which convenes every five years.


“We are confronting unprecedented development opportunities and challenges,” he said, adding, “The gap between rich and poor is growing.”


While acknowledging that China’s wealth remains unbalanced among regions and unequally distributed, Mr. Hu told the congress that his decade as top leader had brought robust economic growth and the makings of a “moderately prosperous society.”


“Over the past five years, there have been major achievements in every aspect of work,” he said. “Reform and opening up have gained major advances, and the people’s standard of living has clearly risen.”


Mr. Hu’s congress report is a major part of the public ceremony that accompanies China’s leadership transitions. But the real decisions about who will succeed him and his cohorts have been made in secretive negotiations involving senior officials and party elders.


In a show of unity, Mr. Hu earlier entered the assembly hall accompanied by the dominant party elder, former President Jiang Zemin, who shuffled gingerly to his seat. But party insiders have said Mr. Jiang, 86, played a major role in shaping the next leadership circle and voiced frustration with the record of Mr. Hu and Prime Minister Wen Jiabao.


Contrary to some observers’ predictions, Mr. Hu did not play down the founder of the People’s Republic of China, Mao Zedong, whose revolutionary heritage sits increasingly awkwardly with urban middle-class wealth and values. Mr. Hu also repeatedly mentioned the phrases “scientific development” and a “harmonious society,” which he has used to sum up his goals of a stable society under firm party control.


Officially, the new leadership team is to be selected in the coming week by the 2,268 delegates to this congress, the 18th in the party’s 91-year history. In fact, much of what will go on during the congress has already been decided. The delegates are voted on by lower-ranking members but based on guidance provided by higher-ups, a process known as “democratic centralism.”


Mr. Hu repeated vows of “political system reform” in his report to the congress. But officials have made clear that the party’s notions of political change do not embrace any idea of full-fledged electoral democracy.


On the contrary, at a news conference on Wednesday, the congress’s spokesman and deputy head of Communist Party propaganda, Cai Mingzhao, defended China’s current system.


“The leading position of the Communist Party in China is a decision made by history and by the people,” Mr. Cai said.


Still uncertain is who will be standing next to Mr. Xi when the top leadership is presented in a week. This group, known as the Politburo’s Standing Committee, essentially runs China. According to plan, it will include Mr. Xi and Li Keqiang, who is expected to take over as head of the government bureaucracy next year. Both men are current members of the Standing Committee.


It is also unclear how many members the committee will have. It now has nine posts and is expected to be cut to seven.


Nor has Mr. Hu indicated when he will give up his post as chairman of the Central Military Commission, which gives him continued influence over Mr. Xi’s policies and personnel choices.


In his report, Mr. Hu lauded China’s growing military strength, promising to continue modernizing the People’s Liberation Army forces, and calling them a defender of peace, a point sure to be questioned by regional neighbors, including Japan, that are embroiled in territorial disputes with Beijing.


Mr. Cai, the spokesman, also said the party had learned from the scandals surrounding two high-ranking officials: Bo Xilai, the former Politburo member, and Liu Zhijun, the former railway minister. Both have been accused of corruption, and Mr. Bo is also accused of covering up the murder of a British businessman. Mr. Hu did not refer explicitly to Mr. Bo in his report, but said corrupt officials should be punished “no matter how high or low in rank.”


This article has been revised to reflect the following correction:

Correction: November 7, 2012

An earlier version of this article gave an incorrect number for the delegates to China’s 18th Communist Party Congress. There are 2,268 delegates, not 2,280.



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Apple slides to five-month low, uncertainty grows

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