Wal-Mart 3Q profit up but sees sales shortfall

NEW YORK (AP) — Wal-Mart Stores Inc. reported a 9 percent increase in net income for the third quarter, but revenue for the world’s largest retailer fell below Wall Street forecasts as its low-income shoppers continue to grapple with an uncertain economy.

The discounter issued a fourth-quarter profit outlook that fell short of Wall Street expectations, and the company’s stock price slid more than 3 percent.

Wal-Mart is considered an economic bellwether because the retailer accounts for nearly 10 percent of nonautomotive retail spending in the U.S. The company’s latest results show that many low-income Americans — it’s estimated that the typical Wal-Mart customer has an average household income of between $ 30,000 and $ 60,000, rents their homes and doesn’t own stock — continue to struggle even as the housing and stock markets are improving.

The disappointing revenue comes as Wal-Mart, like other retailers, is preparing for the busy winter holiday shopping season in the U.S. next week. The period, which runs roughly from November throughout December, is a time when stores can make up to 40 percent of their annual revenue. Wal-Mart has said that it plans to offer deeper discounts and a broader assortment of merchandise during this year’s season to draw in shoppers.

“Macroeconomic conditions continue to pressure our customers,” said Charles Holley, Wal-Mart’s chief financial officer. “The holiday season is predicted to be very competitive but we are well prepared to deliver on the value and low prices our customers expect.”

The disappointing revenue results come a year after Wal-Mart’s U.S. namesake business turned a corner by reemphasizing low prices and restocking stores with thousands of basic items that it had gotten rid of in an overzealous bid to reduce clutter.

During the third quarter of last year, the division reversed nine straight quarters of declines in revenue at stores opened at least a year, which is considered a key measure of a retailer’s health. The U.S. namesake business has recorded five consecutive quarters of gains since the division rebounded, including a 1.5 percent increase in the third quarter.

But the third-quarter gain is just shy of the 1.8 percent increase analysts polled by Thomson Reuters were expecting. It’s also a slowdown in growth from the 2.2 percent gain the business posted in the second quarter and the 2.6 percent increase it had in the first quarter.

Analysts say that Wal-Mart’s previous results had benefited from the increase in prices shoppers were paying for groceries due to inflation for some items, a trend that is now subsiding. They also say that Wal-Mart is facing tougher revenue comparisons from a year ago when its business first began to rebound.

Ken Perkins, president of Retail Metrics, a research company, said Wal-Mart’s revenue is headed in the right direction. But he cautioned that the company will need to continue to keep prices low in order to compete with rivals that have stepped up discounting.

“Overall, it’s a relatively good report,” he said. “But it shows that its consumer is still struggling.”

In the third quarter, Bentonville, Ark.-based Wal-Mart earned $ 3.63 billion, or $ 1.08 per share, in the quarter ended Oct. 31. That compares with $ 3.33 billion, or 96 cents per share, in the year-ago period.

Net revenue, excluding Sam’s Club membership fees, rose 3.4 percent to $ 113.2 million. Excluding the currency impact, net revenue would have been $ 114.9 million. Analysts were expecting $ 1.07 per share on net revenue of $ 114 billion.

Nearly all areas, including food and clothing, registered gains. However, the company’s entertainment category, which includes gaming, suffered a decline, dragged down by price deflation. Part of the weakness is also due to the company’s layaway business, which winds up deferring sales to the fourth quarter.

For the entire U.S. business, sales at stores opened at least a year rose 1.7 percent, below the 2.1 percent Wall Street estimate. At Sam’s Club, the figure was up 2.7 percent, below the 3.8 percent increase Wall Street expected and the 4.2 percent gain it posted in the second quarter.

The company said its business members at Sam’s Clubs are being hurt by the economic downturn, and are switching to less-expensive chicken from beef. To boost sales, Sam’s Club is increasing its offering of rotisserie chicken, and has reduced prices in several varieties of apples and beauty products.

“Our business members continue to experience economic pressure and uncertainty,” said Rosalind Brewer, president of Sam’s Clubs.

For the full year, Wal-Mart now said it expects earnings per share to be between $ 4.88 per share and $ 4.93 per share. It originally expected earnings per share of $ 4.83 to $ 4.93. For the fourth quarter, it forecasts earnings per share to be $ 1.53 per share and $ 1.58 per share. Analysts had expected $ 1.59 per share.

Separately, in a filing with the U.S. Securities and Exchange Commission, Wal-Mart said Thursday that it was looking into potential violations related to the Foreign Corrupt Practices Act in Brazil, China and India. This comes after Wal-Mart initially began investigating its Mexico operations following report that surfaced in April that the retailer allegedly failed to notify law enforcement when company officials authorized millions of dollars in bribes in Mexico to speed building permits and gain other favors. The company continues to work with government officials in the U.S. and Mexico on that investigation.

On Thursday, Wal-Mart’s stock fell $ 2.61 to close at $ 68.70. Over the past 52 weeks, Wal-Mart stock has been trading between $ 56.26 and $ 77.60.

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Egypt recalls envoy to Israel after Gaza strike

CAIRO (AP) — Egypt has recalled its ambassador to Israel after an Israeli airstrike killed the military commander of Gaza‘s ruling Hamas.

In a statement read on state TV late Wednesday, spokesman Yasser Ali said that President Mohammed Morsi recalled the ambassador and asked the Arab League‘s Secretary General to convene an emergency ministerial meeting in the wake of the Gaza violence.

Morsi also called for an immediate cease fire between Israel and Hamas, an offshoot of Morsi’s Muslim Brotherhood. Israel says it struck in response to rocket attacks from Gaza.

Hours earlier, Morsi’s Muslim Brotherhood group denounced the Israeli airstrike as a “crime that requires a quick Arab and international response to stem these massacres.”

Relations between Israel and Egypt have deteriorated since longtime President Hosni Mubarak was ousted last year.

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Judge tosses anti-paparazzi counts in Bieber case

LOS ANGELES (AP) — A law aimed at combating reckless driving by paparazzi is overly broad and should not be used against the first photographer charged under its provisions, a judge ruled Wednesday.

Superior Court Judge Thomas Rubinson dismissed counts filed under the law against Paul Raef, who was charged in July with being involved in a high-speed pursuit of Justin Bieber.

The judge cited numerous problems with the 2010 statute, saying it was aimed at newsgathering activities protected by the First Amendment, and lawmakers should have simply increased the penalties for reckless driving rather than targeting celebrity photographers.

Attorneys for Raef argued the law was unconstitutional and wasn’t meant to protect the public.

“It’s about protecting celebrities,” attorney Brad Kasierman said. “This discrimination sets a dangerous precedent.”

Prosecutors argued that the law, which seeks to punish those who drive dangerously in pursuit of photos for commercial gain, could apply to people in other professions, not just the media.

“The focus is not the photo. The focus is on the driving,” Assistant City Attorney Ann Rosenthal argued.

While the media is granted freedom under the First Amendment, its latitude to gather news is not unlimited, Rosenthal argued.

“This activity has been found to be particularly dangerous,” she said of chases involving paparazzi.

Raef still faces traditional reckless driving counts and has not yet entered a plea,

Prosecutors claim he chased Bieber at more than 80 mph and forced other motorists to avoid collisions while trying to get shots of the teen heartthrob on a Los Angeles freeway.

The chase prompted several 911 calls from scared motorists and led to Bieber being pulled over.

Rubinson cited hypothetical examples in which wedding photographers or even those rushing to do a portrait shoot with a celebrity could face additional penalties if charged under the new statute.

Rosenthal also argued that the judge should look at factors specific to Raef’s case, not hypothetical scenarios.

Kaiserman said the ruling only applies to Raef’s case but could lead to the law being struck down if prosecutors appeal.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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U.S. Congress takes aim at FDA over meningitis outbreak

WASHINGTON/NEW YORK (Reuters) – Members of a congressional committee investigating the deadly U.S. meningitis outbreak accused the Food and Drug Administration on Wednesday of failing to prevent the crisis by moving too slowly against a Massachusetts pharmacy.

Tainted steroids from the pharmacy, New England Compounding Center (NECC), have so far killed 32 people and sickened 461 in 19 states, according to updated figures from the U.S. Centers for Disease Control and Prevention. Those numbers are expected to rise with as many as 14,000 people having been exposed to the drugs injected to ease back pain.

“After a tragedy like this, the first question we all ask is: could this have been prevented? After an examination of documents produced by the Massachusetts Board of Pharmacy and the U.S. Food and Drug Administration, the answer here appears to be yes,” Cliff Stearns, Republican chairman of the oversight and investigations panel, said at the hearing of the House Energy and Commerce Committee.

The panel aims to learn why regulators took no action against the Framingham, Massachusetts-based compounding pharmacy that manufactured the tainted drug – despite repeated problems dating back to 1999, including adverse patient reactions to a sterile steroid treatment from as early as 2002.

In a highly contentious hearing that lasted four hours, committee members repeatedly accused FDA Commissioner Margaret Hamburg of failing to answer questions about FDA authority and a lack of action against NECC. Hamburg in turn insisted that the FDA lacks clear authority to regulate compounding pharmacies due to conflicting court rulings and other regulatory ambiguities.

She said new laws must be passed that give the FDA clear authority to regulate compounding pharmacies as it does large drug manufacturers.

“This isn’t, sadly, an isolated incident. This is the worst and most tragic. It should be the last wakeup call for us,” Hamburg said of the deadly meningitis outbreak.

“We really need a strong, clear and appropriate legislation. We cannot have a crazy quilt where different parts of the country are subject to different legal frameworks,” she told the committee.

UNREGULATED COMPOUNDING

Drug compounding is a little-known practice in which pharmacists traditionally alter or recombine drugs to meet the special needs of specific patients with a doctor’s prescription. It is overseen primarily by state authorities that are often ill-equipped for the job.

But in some cases, as with NECC, compounding has evolved to include large-scale production that some experts view as drug manufacturing that should be subject to FDA regulation.

FDA and Massachusetts officials inspected the NECC more than 10 years ago after patients were hospitalized with meningitis-like symptoms and identified contamination in the same drug at issue in the current outbreak.

“Ten years later, we are in the midst of an unthinkable, worst-case scenario – the body count is growing by the day – and hundreds, hundreds – have fallen ill. Inexcusable,” said Fred Upton, Republican chairman of the House Energy and Commerce Committee.

Upton criticized FDA for not providing all the documents related to NECC or a clear timeline of events. He said his committee requested both more than a month ago.

However, U.S. Representative Henry Waxman of California, the committee’s ranking Democrat, defended the FDA and turned his ire toward NECC.

“Let’s not lose sight of the wrongdoers as we go around blaming regulators,” Waxman said.

He noted that the FDA knew 10 years ago that there could be a meningitis outbreak due to practices at NECC “and it wasn’t corrected by the company.”

He said the agency met with “stubborn refusals and a challenge to FDA’s authority” from NECC officials.

Waxman called for bipartisan legislation that gives FDA clear and effective authority to prevent compounders from becoming dangerous drug manufacturers like NECC.

HAMBURG IN HOT SEAT

But Republican committee members repeatedly, and sometimes angrily, challenged Hamburg’s contention that FDA lacked the authority to oversee compounders that had grown into defacto manufacturers.

“We’re just not buying it Ms. Hamburg,” said Representative Michael Burgess of Texas, an obstetrician by profession.

“Go look in the eyes of the victims and try to tell them that,” said Republican Tim Murphy of Pennsylvania.

Nebraska Republican Lee Terry was extremely combative with Hamburg, repeatedly asking for specific statutes that prevented FDA oversight of compounders and cutting off her attempts to respond. Terry went as far as accusing the commissioner of deliberately providing written testimony in the middle of the night so committee members had little time to review it.

“I know that you’re frustrated with my answers and I’m sorry. I can’t just give ‘yes or no’ answers. This is complex,” Hamburg told Murphy at one point.

Murphy shot back that what victims were going through was complex. “Leadership is easy if you’re willing to accept it. You are not.”

Florida Democrat Kathy Castor rose to Hamburg’s defense in describing current laws on regulating compounders as varying from region to region, creating conflicting enforcement issues.

“There is ambiguity. There is great ambiguity,” she said.

Waxman also attempted to rescue Hamburg, accusing Republican counterparts of playing politics. “I have a feeling, Dr. Hamburg, that you’re being picked on by Republicans because you’re with the Obama administration,” he said.

He pointed out that past FDA failures being referred to took place under a different commissioner during the Bush administration.

The panel also heard testimony from the widow of one of the victims, as well as Massachusetts Department of Public Health interim Commissioner Dr. Lauren Smith, to whom congress members were respectful and complimentary, and NECC co-owner Barry Cadden, who refused to answer any questions from the committee.

Cadden, a short, middle-aged man flanked by two attorneys, appeared before the committee with spiky close-cropped hair and wearing a dark gray business suit. He repeatedly cited his right to not incriminate himself under the fifth amendment of the U.S. Constitution when asked to explain breakdowns in sanitary conditions at NECC that led to the meningitis outbreak.

The Massachusetts Board of Registration in Pharmacy, which does have oversight of NECC, failed to carry out sanctions against the company despite repeated problems that culminated in this year’s outbreak.

Several lawmakers questioned Smith about relations between NECC and the Massachusetts pharmacy board, some saying reports of close ties among individuals could have encouraged state regulators to favor the interests of pharmacies over patients.

Waxman noted that weak sanctions to which NECC previously agreed occurred when Mitt Romney was governor of Massachusetts.

The committee heard emotional testimony from the 78-year-old widow of a Kentucky judge who was among the first to die in the meningitis outbreak.

“It was such a useless thing that happened to my husband,” Joyce Lovelace said, testifying from a wheelchair.

“I can’t begin to tell you what I have lost,” she said, her voice breaking with emotion. “I’ve come here begging you to do something about it.”

Democrat Edward Markey, whose congressional district includes the town where NECC is located, said Congress would take action.

“I commit to you and all the victims that we will not stop until this industry is safe,” he said.

(Additional reporting by Bill Berkrot in New York; Editing by Dan Grebler, Andrew Hay and Maureen Bavdek)

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Bank predicts protracted recovery

14 November 2012 Last updated at 12:35 ET

Bank of England cuts UK growth forecast for 2013

The Bank of England has cut its growth forecast for next year to about 1% from nearer 2%, and said recovery will be “slow and protracted”.

It now thinks that the economy will not get back to pre-crisis levels until 2015, two years later than it previously predicted.

The Bank also believes inflation will remain higher for longer.

Governor Sir Mervyn King also welcomed the latest jobs figures which showed a continued fall in unemployment.

He was presenting the Bank’s quarterly Inflation Report, which forecast that inflation would not now fall towards the government’s 2% target until mid-2013, rather than in the first half of next year as previously thought.

Continue reading the main story

“Start Quote

This is going to be a long and challenging recovery from a very substantial crisis”

End Quote David Gauke Treasury Minister

The report said the UK could be stuck in a “low-growth” environment, with economic problems in the eurozone and the rest of world continuing to have an impact domestically.

As the BBC’s economics editor Stephanie Flanders put it: “The Bank hasn’t just lowered its growth forecasts for the next year or so – it has more or less given up hope of being pleasantly surprised.”

Sir Mervyn warned that growth from quarter to quarter would continue to fluctuate. In the April-June quarter growth was depressed by one-off factors such as the unseasonably bad weather and had given a misleadingly weak picture of the economy.

Similarly, growth in the July-September period was boosted by one-off factors including ticket revenue from the Olympics and Paralympics and gave “an overly optimistic impression of the underlying trend,” he said, adding that the data was not necessarily “a reliable guide to the future”.

He said: “Continuing the recent zig-zag pattern, output growth is likely to fall back sharply in Q4 [between October and December] as the boost from the Olympics in the summer is reversed. Indeed, output may shrink a little this quarter,” he said.

The Bank has previously predicted that inflation might fall towards the government’s 2% target in the first half of next year.

But it now expects inflation to stay higher for longer. “We face the rather unappealing combination of a subdued recovery, with inflation remaining above target for a while,” Sir Mervyn said.

“The road to recovery will be long and winding, but there are good reasons to suggest we are travelling in the right direction,” he said.

‘Long process’

Treasury minister David Gauke said he recognised that these were tough times, but insisted that the economy was “moving in the right direction”.

Continue reading the main story

“Start Quote

What is new is that the Bank now thinks that the UK economy will not get back to where it was at the start of 2008 until well into 2015”

End Quote

Asked on BBC Radio 4′s The World At One if he agreed with Sir Mervyn’s warning about a potential sharp fall in output, Mr Gauke said: “The independent Office for Budget Responsibility forecasts growth in the economy in the autumn statement in three weeks’ time. I’m not going to pre-judge that.

“Clearly, there are international pressures on our economy that mean that this is going to be a long and challenging recovery from a very substantial crisis. That is what we are going through at the moment. I think the British people understand that this is going to be a long process,” he said.

However, shadow chancellor Ed Balls said: “This sobering report shows why David Cameron and George Osborne’s deeply complacent approach to the economy is so misplaced.

“Their failing policies have seen two years of almost no growth and the Bank of England is now forecasting lower growth and higher inflation than just a few months ago.

“Britain needs a plan to create the jobs and growth we need to get deficits down, including using funds from the 4G auction to build 100,000 affordable homes and create hundreds of thousands of jobs,” Mr Balls said.

The Bank’s report came on the day that the Office for National Statistics said that the UK unemployment rate fell to 7.8% in the July-September quarter, down from 8% in the previous three months.

The 49,000 fall in number of jobless, to 2.51 million, was almost entirely due to a fall in youth unemployment, the ONS said. It means that the jobless total is now 110,000 lower than for the July-September quarter last year.

Continue reading the main story

However, the claimant count went up in September, leading some economists to suggest that the recent resilience of the jobs market was beginning to weaken. And the number of people unemployed for longer than a year also rose.

Sir Mervyn told the news conference: “I don’t think one would say that the data released this morning were weak.

“This is still a pretty strong labour market and, of course, it is not easy to reconcile that with the picture of underlying growth being still so weak,” he said.

Sir Mervyn also told a press conference that he had not “lost faith” in quantitative easing as a way to stimulate economic growth.

The Bank has kept the amount it injects into the economy by buying up government bonds at £375bn since July this year.

Some have questioned its effectiveness, but the Bank said it had not ruled out further asset purchases to try to stimulate growth.

He said that with the global economy still struggling, “there are limits to the ability of domestic policy to stimulate private sector demand as the economy adjusts to a new equilibrium”.

“But the [Monetary Policy] Committee has not lost faith in asset purchases as a policy instrument, nor has it concluded that there will be no more purchases.”

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

___

Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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Charlie Chaplin’s bowler and cane to hit auction block

LOS ANGELES (Reuters) – One of Charlie Chaplin’s iconic bowler hats and canes, the staple of Hollywood silent-era comedy, will go under the hammer in Los Angeles this weekend, auction house Bonhams said on Tuesday.

Chaplin’s hat and cane – synonymous with his trademark “Little Tramp” character in films such as “City Lights” and “Modern Times” – are expected to fetch between $ 40,000 and $ 60,000 in the November 18 auction.

It is unknown how many of Chaplin’s bowlers and canes still exist, said Lucy Carr, a memorabilia specialist at Bonhams. The ones up for auction come from a private collection but have a direct link to Chaplin, Carr said.

The waddling and bumbling Little Tramp character propelled Chaplin to global fame. The character, which Hollywood legend says was created by accident on a rainy day at Keystone Studio, first appeared in 1914′s “Kid Auto Races at Venice” and lastly in 1936′s “Modern Times.”

Chaplin’s hat and cane are the highlights of an auction of popular culture artifacts including a saxophone that belonged to jazz pioneer Charlie Parker ($ 22,000-$ 26,000) and a handwritten letter from John Lennon in which The Beatle sketched himself and wife Yoko Ono nude ($ 18,000-$ 22,000).

Other items hitting the block range from an archive of Marilyn Monroe photographs ($ 15,000-$ 20,000), an early Charles Schulz “Peanuts” comic strip ($ 10,000-$ 15,000) and a wicker chair from Rick’s Cafe in “Casablanca” ($ 5,000-$ 7,000).

(Reporting By Eric Kelsey, editing by Jill Serjeant)

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Head injury, pesticides tied to Parkinson’s disease

NEW YORK (Reuters Health) – The combination of a past serious head injury and pesticide exposure may be linked to an extra-high risk of developing Parkinson’s disease, a new study suggests.

The findings don’t prove being knocked unconscious or exposed to certain chemicals directly causes Parkinson’s, a chronic movement and coordination disorder.

But they are in line with previous studies, which have linked head trauma and certain toxins – along with family history and other environmental exposures – to the disease.

“I think all of us are beginning to realize that there’s not one smoking gun that causes Parkinson’s disease,” said Dr. James Bower, a neurologist from the Mayo Clinic in Rochester, Minnesota who wasn’t involved in the new research.

“There might be many paths to the ultimate development of Parkinson’s disease,” he told Reuters Health.

For example, Bower said, some people who are genetically predisposed might need just one “environmental insult” – such as a blow to the head – to set them up for Parkinson’s. Others who aren’t naturally susceptible to the disorder could still develop it after multiple exposures.

Head trauma and contact with pesticides “may not be directly related, and may be two independent stresses,” Columbia University neurologist David Sulzer, who also wasn’t part of the study team, told Reuters Health in an email.

About 50,000 to 60,000 older adults in the U.S. are diagnosed with Parkinson’s disease each year, according to the National Parkinson Foundation.

For the new study, researchers led by Pei-Chen Lee from the University of California at Los Angeles compared 357 people with a recent Parkinson’s diagnosis to a representative sample of 754 people without the disease, all living in central California, which is a major agricultural region.

The study team asked all of them to report any past traumatic head injuries – in which people had been unconscious for at least five minutes – and used their home and work addresses to determine their proximity to pesticide sprayings since 1974.

Those surveys showed that close to 12 percent of people with Parkinson’s had been knocked unconscious, and 47 percent had been exposed to an herbicide called paraquat near both their home and workplace.

That’s in comparison to almost seven percent of control-group participants with a history of head injury and 39 percent with pesticide exposure.

On their own, traumatic brain injury as well as living and working near pesticide sprayings were each tied to a moderately increased risk of Parkinson’s disease. Combined, they were linked to a tripling of that risk, the researchers reported Monday in the journal Neurology. That was after taking into account people’s baseline risk based on their age, gender, race, education, smoking history and family history of Parkinson’s.

Lee’s team didn’t know which came first in people who’d had both head trauma and paraquat exposure.

It makes sense, the researchers noted, that a head injury would increase inflammation in the brain and disrupt the barrier that separates circulating blood and brain fluid. Those changes could then make neurons in the brain more vulnerable to the effects of pesticides, ultimately increasing the risk of Parkinson’s.

But that’s just a theory.

“There are all kinds of hypotheses,” Bower said. But the study “is more evidence that traumatic injury to the brain can lead to later problems that are usually neurodegenerative,” he added. “We need to be increasingly careful about preventing these traumatic brain injuries.”

SOURCE: http://bit.ly/TD3OA9 Neurology, online November 12, 2012.

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TSX drops to two-month low on U.S., Europe fears

TORONTO (Reuters) – Canada‘s main stock index slipped to a two-month low on Tuesday, dragged down by resource and financial shares, as investors fixated on fears of a fiscal crisis in the United States and economic turmoil in Europe.

The Toronto Stock Exchange‘s S&P/TSX composite index <.GSPTSE> unofficially closed down 56.80 points, or 0.47 percent, at 12,134.66.

(Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)

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Canada seen needing to spell out rules for natural gas projects

CALGARY, Alberta (Reuters) – The fate of a handful of liquefied natural gas projects planned for Canada’s Pacific coast may depend on the Canadian government‘s willingness to spell out rules for foreign investment in the country’s energy sector, according to a study released on Thursday.

Apache Corp, Royal Dutch Shell Plc, Petronas, BG Group Plc and others are in the planning stages for LNG projects that would take gas from the rich shale fields of northeastern British Columbia and ship it to Asian buyers.

But the federal government’s decision last month to stall the C$ 5.2 billion ($ 5.2 billion) bid by Malaysia’s state-owned Petronas C$ 5.2 billion for Canada‘s Progress Energy Resources Corp could lessen the appetite of Asian buyers for Canadian LNG, energy consultants Wood Mackenzie said.

“Some potential off-takers of Canadian LNG like the idea … because it’s perceived as having low political risk, and another reason is because they see the potential for investment opportunities,” said Noel Tomnay, head of global gas at the consultancy.

“If there are going to be restrictions on how they access those opportunities, if acquisitions are closed to them, then clearly that would restrict the attractiveness of those opportunities. If would-be Asian investors thought that corporate acquisitions were an avenue that was not open to them then Canadian LNG would become less attractive.”

The Canadian government is looking to come up with rules governing corporate acquisitions by state-owned companies and has pushed off a decision on the Petronas bid as it considers whether to approve the $ 15.1 billion offer for Nexen Inc from China’s CNOOC Ltd.

Exporting LNG to Asia is seen as a way to boost returns for natural-gas producers tapping the Montney, Horn River and Liard Basin shale regions of northeastern British Columbia.

Though Wood Mackenzie estimates the fields contain as much as 280 trillion cubic feet of gas, they are far from Canada’s traditional U.S. export market, while growing supplies from American shale regions have cut into Canadian shipments.

Because the region lacks infrastructure, developing the resource will be expensive, requiring new pipelines and multibillion-dollar liquefaction.

Still Wood Mackenzie estimates that the cost of delivery into Asian markets for Canadian LNG would be in the range of $ 10 million to $ 12 per million British thermal units, similar to competing projects in the United States and East Africa.

($ 1 = $ 1.00 Canadian)

(Reporting by Scott Haggett; Editing by Leslie Adler)

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