Global recovery ‘under threat’

27 November 2012 Last updated at 07:41 ET

Decisive policy action is needed to ensure the world is not “plunged back into recession”, according to the OECD.

The Organisation for Economic Co-operation and Development, which represents the world’s richest nations, also lowered its growth forecasts.

The group’s economies will grow by 1.4% next year, rather than the 2.2% forecast in May, it said.

The eurozone recession will also be deeper and more prolonged than previously thought, it added.

The group highlighted the so-called US fiscal cliff and the eurozone debt crisis as the biggest risks to the global economy.

The fiscal cliff refers to spending cuts and tax rises, designed to reduce the US government’s debt levels, that are due to kick in in the new year.

Downgrades

“The world economy is far from being out of the woods,” said the OECD’s secretary general Angel Gurria.

“The US fiscal cliff, if it materialises, could tip an already weak economy into recession, while failure to solve the euro area debt crisis could lead to a major financial shock and global downturn.”

The OECD cut its growth forecast across its 34 members for this year and next. It also revised down sharply its estimate for the eurozone economy, which it now believes will contract by 0.1% in 2013, rather than grow by 0.9% as forecast in May.

The forecast for growth in the UK next year was cut to 0.9%, down from 1.9% previously.

The revised forecasts were published just hours after eurozone finance ministers finally agreed to help debt-ridden Greece.

After hours of late-night negotiations, they agreed to cut the country’s debts by 40bn euros ($ 51bn; £32bn) and have paved the way for releasing the next tranche of much-needed bailout loans.

BBC News – Business

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Nintendo says more than 400,000 Wii Us sold in US

NEW YORK (AP) — Nintendo has sold more than 400,000 of its new video game console, the Wii U, in its first week on sale in the U.S., the company said Monday.

The Wii U launched on Nov. 18 in the U.S. at a starting price of $ 300. Nintendo said the sales figure, based on internal estimates, is through Saturday, or seven days later.

The Wii U is the first major game console to launch in six years. It comes with a new touch-screen controller that promises to change how people play games by offering different people in the same room a different experience, depending on the controller used.

Six years ago, Nintendo Co. sold 475,000 of the original Wii in that console’s first seven days in stores, according to data from the NPD Group. The original Wii remains available, and Nintendo said it sold more than 300,000 of them last week, along with roughly 250,000 handheld Nintendo 3DS units and about 275,000 of the Nintendo DS.

At this early stage, demand isn’t the only factor dictating how many consoles are sold. Supply is, too. This means it’s likely that more people wanted to buy the Wii U in the first week than those who were able to. The original Wii was in short supply more than a year after it went on sale.

As of Monday afternoon, the website of Best Buy Co. was sold out of the Wii U. Video game retailer GameStop Corp. said there was at least a three day wait for a deluxe Wii U, which costs $ 350, has more memory and comes with a game called “Nintendo Land.” GameStop still had the basic, $ 300 version available.

Wedbush analyst Michael Pachter estimates that Nintendo will ship 1 million to 1.5 million Wii Us in the U.S. through the end of January.

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Gay Men, Moms Sue NJ Conversion Therapists for Fraud

Four gay men and two of their mothers filed a lawsuit today against a New Jersey conversion therapy group that claims to rid men of same-sex attractions and turn them straight.

The lawsuit, filed in Superior Court of New Jersey Hudson County, alleges that methods used by the Jersey City-based Jews Offering New Alternatives to Healing (JONAH) do not work and constitute fraud under the state’s consumer protection laws.

Arthur Goldberg, JONAH‘s co-director, and Alan Downing, a “life coach” who provides therapy sessions, were also named in the suit.

The plaintiffs include Michael Ferguson, Benjamin Unger, Sheldon Bruck and Chaim Levin, all of whom used the services of JONAH when they were in their teens or young 20s.

Two of the men’s mothers, Jo Bruck and Bella Levin, who paid for therapy sessions that could cost up to $ 10,000 a year, were also plaintiffs.

One of the plaintiffs alleges that therapy sessions that involved a virtual “strip tease” in front of an older male counselor, as well as reliving abuse and homophobia were “humiliating.”

They are seeking declaratory, injunctive and an undisclosed amount of monetary relief, as well as court costs, according to the lawsuit.

The plaintiffs have received legal help from the Southern Poverty Law Center (SPLC), which claims in the lawsuit that conversion therapy is a dangerous practice that has been “discredited or highly criticized” by every major American medical, psychiatric, psychological and professional organization.

Three of the young plaintiffs are from an ultra orthodox Jewish background; Ferguson came from a Mormon background and met Downing at a “Journey Into Manhood” retreat, according to the lawsuit.

JONAH appears to cater to orthodox Jews, but its methods “do not have a strong religious aspect,” according to SPLC lawyer Sam Wolfe.

The lawsuit alleges that some of the methods used included: telling boys to beat a pillow, the “effigy of the client’s mother,” with a tennis racket; encouraging “cuddling” between younger clients and older male counselors; and even instructing attendees to remove their clothing and hold their penis in front of Downing.

Attendees were also subjected to ridicule as “faggots” and “homos” in mock locker room and gym class role playing, according to the lawsuit.

“It’s definitely cruel and unusual and doesn’t work,” said Wolfe. “They are peddling bogus techniques that have no foundation in science and are basically ridiculous and even harmful.”

Wolfe paraphrased JONAH’s message as: “All you have to do is put in the work to overcome your sexual attractions. If you follow our program your true orientation emerges and will turn you into a straight person.”

“Often if what the conversion therapist tells them doesn’t work, it’s their fault,” Wolfe added.

In 2008, when the plaintiffs were seeking help from JONAH, the cost of an individual therapy session was $ 100 and for a group session, $ 60. JONAH also “strongly pushed” attending weekend retreats that could cost as much as $ 700, said Wolfe.

Arthur Goldberg said he “knows nothing about the lawsuit,” which was filed this morning, and referred ABCNews.com to JONAH’s website.

“We have a lot of people who were a success and were healed,” he said of JONAH’s 14 years in service. “Hundreds of the clients we serve are satisfied … Our therapy is very conventional.”

When asked about the group’s practices, he said, “I can’t tell you about the methodology.” Goldberg admitted he had “no background specifically in counseling.”

“I am the administrator,” he said. “I used to teach family law.”

When asked about instructing boys to take off their clothes, he said, “I know nothing about that.”

Goldberg also said he had “no idea” how to reach Downing because he was an “independent contractor.”

According to JONAH’s mission statement on its website, the nonprofit group is “dedicated to educating the world-wide Jewish community about the social, cultural and emotional factors which lead to same-sex attractions.”

“Through psychological and spiritual counseling, peer support, and self-empowerment, JONAH seeks to reunify families, to heal the wounds surrounding homosexuality, and to provide hope,” the statement reads.

JONAH’s Goldberg, who runs the business side of the nonprofit, says on the website that “change from homosexual to heterosexual is possible … homosexuality is a learned behavior which can be unlearned, and that healing is a lifelong process.”

According to the lawsuit, JONAH cites the “scientific” work of Joseph Nicolosi, one of the primary proponents of conversion therapy and Richard A. Cohen, who was permanently expelled from the American Counseling Association in 2002 for “multiple ethical violations.”

Nicolosi’s methodology is based on the belief that a weak father-son relationship and a dominating mother contribute to homosexuality. He advocates “rough and tumble games,” as well as father-son showers, according to the lawsuit.

Cohen uses a technique called “bioenergetics” that includes having male patients beat a pillow, which represents their mother, as a way of stopping same-sex attraction, according to the lawsuit.

Conversion therapists also cite child abuse and bullying as a “primary cause” of homosexuality, according to the lawsuit.

APA Calls Gay Conversion Therapy Risky

The American Psychiatric Association and the World Health Organization, among other mental health groups, have cited the potential risks of reparation therapy, including “depression, anxiety [and] self-destructive behavior,” according to the lawsuit.

Chaim Levin, the most vocal of the plaintiffs, is now 23 and a gay rights advocate who writes a blog, Gotta Give ‘Em Hope.

He grew up in a Jewish ultra orthodox community in Brooklyn where religious leaders threw him out of the Hebrew-speaking yeshiva at the age of 17, when they learned he was gay.

Levin told ABCNews.com that he had been abused as a boy and that he was “confused” by his sexuality and took a rabbi’s advice and began 18 months of gay conversion therapy at JONAH.

[Levin filed a civil lawsuit against his cousin in July, alleging he was abused for three years from the time he was 6.]

When Levin met co-director Goldberg, he said the defendant told him JONAH could change his sexual orientation, “as long as I tried hard enough and put enough effort into it.”

“He told me, ‘You will marry a woman and have a straight life,’” said Levin.

“Given where I came from, with three older siblings who were married with kids and not knowing any gay people or English, I was sure I could change,” he said. “That was the theology.”

Levin first did a retreat with Downing, then saw him weekly at therapy sessions in Jersey City.

“A lot of the therapy involves reliving the experience,” he said. Levin alleges he was forced to relive the sexual abuse by his cousin, “with no counseling afterwards.”

But the most “humiliating” experience, the one that Levin alleges made him quit therapy, was being asked by Downing to take off his clothes, article by article and told to touch his “private parts” — to hold his penis in front of a mirror to “be in touch with my masculinity.”

“I told him I wasn’t comfortable, but I desperately wanted to change and was ready to do anything,” said Levin. Afterward, he said he felt “degraded and violated.”

Today, Levin no longer identifies as orthodox, but said his parents have been “supportive” of the lawsuit.

Some Jewish denominations and many congregations are inclusive of homosexual congregants, and even New York’s orthodox communities are more open-minded now, according to Levin.

“I had gone for help and they had misrepresented themselves,” he said.

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Timing of Egypt’s Turmoil Couldn’t Be Worse for Its Economy

Political turmoil in Egypt entered its fourth day Monday, after President Mohammed Morsi’s surprise power-grabbing decree galvanized the opposition and set off rounds of street violence, at a time when the nation needs unity to make difficult economic decisions.

Egypt’s economy was already in trouble, with foreign reserves having fallen 40 percent since the uprising and growth projected to be less than 2 percent this year. Tourism and direct foreign investment have dropped, while unemployment has climbed. Economists say the government needs to tighten spending and devalue the currency—unpopular moves even without angry demonstrators already in the streets.

“Morsi needs political support to institute unpopular economic policies, such as cutting subsidies on fuel or potentially allowing the pound to depreciate against the dollar or the euro,” says Elijah Zarwan, a Cairo-based senior policy fellow at the European Council on Foreign Relations. “The more polarized the situation gets, the more each side escalates, the harder to imagine the kind of consensus-driven compromise that stands the best chance of enduring and producing the political stability that Egypt needs to get its economy back on track.”

Late Thursday night Morsi issued the constitutional declaration stating the president can issue “any decision or measure to protect the revolution,” which is final and immune to appeal in the courts. His declaration also barred the judiciary from dissolving the upper house of parliament or the body tasked with writing the new constitution, both of which are dominated by Islamists. The powers would be in place until new parliamentary elections are held and the constitution is ratified, which are expected only in the spring.

The response was immediate: The fractured opposition united and violent protests—often against the headquarters of Morsi’s political party—erupted across the country. On Sunday the first casualty of the violence was identified in the press as 15-year-old Islam Hamdi Abdel-Maqsood, killed as protesters tried to storm the party offices in the Nile Delta city of Damanhoor.

Both sides announced rallies, scheduled for Tuesday, for and against the decree, ratcheting up pressure on the government and setting the country on another collision course.

The effect of the turmoil on the economy was immediate. In the first day of trading since the decree, Egypt’s benchmark EGX30 stock index dropped 9.59 percentage points on Sunday. The losses were among the biggest since President Hosni Mubarak’s ouster in an 18-day uprising in January 2011.

The crisis could not have come at a worse time, with economists prescribing strong medicine to attack the country’s rising deficits and economic woes.

“We think that Egypt needs a fiscal tightening of 3 percent of GDP to put public finances on a stable footing,” says Neil Shearing, chief emerging markets economist at Capital Economics in London. “Delivering this is going to be extremely difficult against a backdrop of continued civil unrest. The currency remains a difficult issue, too. The pound looks extremely overvalued at present and probably needs to fall by 20 percent or so in order to restore lost competitiveness. But this implies a loss of purchasing power and will be unpopular. Given all the other challenges, devaluation could well be kicked further down the road and dealt with at a later stage.”

One piece of good news was the government’s announcement last week of a preliminary agreement with the IMF for a $ 4.8 billion loan, but this too comes hand-in-hand with steep reforms. As part of the agreement, Egypt should overhaul its energy subsidies, resulting in steep increases in the price of cooking gas and petrol, which would be a deeply unpopular move that again risks bringing people back out into the streets. There is already opposition to the IMF deal, which has been hotly debated since Mubarak’s ouster, and analysts worry that continued political turbulence would either stall the loan or reduce Morsi’s willingness to institute the kind of reform the Egyptian economy needs.

“It feels at the moment like it’s two steps forward and one step back,” says Shearing. “The IMF deal was a major positive development—the sums of money involved won’t cover Egypt’s entire external finance needs over the next couple of years, which is close to $ 20 billion, but it will go a long way toward reversing the immediate threat of the balance of payment crisis, which is very real. If nothing else, the events of the past week illustrate that progress over the next year will be extremely bumpy. Clearly, local politics still matter enormously.”

With three senior advisers already resigning over the decree, Morsi appears to be trying to defuse the situation, and he sought a meeting with senior judges on Monday. A statement on Sunday night from the president’s office said Morsi was committed to “engage all political forces in the inclusive democratic dialogue to reach a common ground.” Protesters, meanwhile, look to be in it for the long haul and have set up an encampment in Tahrir Square, the heart of the uprising that toppled Egypt’s last dictator.

“I think we’ve started to see the first steps toward a compromise that will restore stability in the short term, but that even at the end of that, I think the experience has hurt Morsi in terms of the support of a large segment of the population that was willing to reserve judgment and even among many people who voted for him because they didn’t want to elect a dictator, and it’s going to be difficult for him to recover that support,” Zarwan says.

Finding allies for unpopular economic reform will now be even more daunting, says Zarwan. “Unless he can pull some pretty fat rabbits out of his sleeve fairly quickly, he’s not going to find that kind of broad-based support.”

Topol is a Bloomberg Businessweek contributor.

Businessweek.com — Top News

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UN climate talks open in Qatar

DOHA, Qatar (AP) — U.N. talks on a new climate pact resumed Monday in oil and gas-rich Qatar, where negotiators from nearly 200 countries will discuss fighting global warming and helping poor nations adapt to it.

The two-decade-old talks have not fulfilled their main purpose: reducing the greenhouse gas emissions that scientists say are warming the planet.

Attempts to create a new climate treaty failed in Copenhagen three years ago but countries agreed last year to try again, giving themselves a deadline of 2015 to adopt a new treaty.

A host of issues need to be resolved by then, including how to spread the burden of emissions cuts between rich and poor countries. That’s unlikely to be decided in the Qatari capital of Doha, where negotiators will focus on extending the Kyoto Protocol, an emissions deal for industrialized countries, and trying to raise billions of dollars to help developing countries adapt to a shifting climate.

“We all realize why we are here, why we keep coming back year and after year,” said South Africa Foreign Minister Maite Nkoana-Mashabane, who led last year’s talks in Durban, South Africa. “We owe it to our people, the global citizenry. We owe it to our children to give them a safer future than what they are currently facing.”

The U.N. process is often criticized, even ridiculed, both by climate activists who say the talks are too slow, and by those who challenge the scientific near-consensus that the global temperature rise is at least partly caused by human activity, primarily the burning of fossil fuels like coal and oil.

The concentration of greenhouse gases such as carbon dioxide has jumped 20 percent since 2000, according to a U.N. report released last week.

A recent projection by the World Bank showed temperatures are on track to increase by up to 4 degrees C (7.2 F) this century, compared with pre-industrial times, overshooting the 2-degree target that has been the goal of the U.N. talks.

Middle East News Headlines – Yahoo! News

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Nokia unveils 2 new cellphone models, priced at $62

HELSINKI (Reuters) – Struggling Finnish cellphone maker Nokia unveiled on Monday two new cellphone models, the Asha 205 and the Asha 206, pricing both models at around $ 62, excluding subsidies and taxes.

Both models will go on sale this quarter.

Nokia unveiled a new Slam feature which allows consumers to share multimedia content like photos and videos with nearby friends almost instantly through Bluetooth connection.

(Reporting By Tarmo Virki)

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Rolling Stones turn back clock with hit-filled comeback

LONDON (Reuters) – The Rolling Stones turned back the clock in style on Sunday with their first concert in five years, strutting and swaggering their way through hit after familiar hit to celebrate 50 years in business.

Before a packed crowd of 20,000 at London‘s O2 Arena, they banished doubts that age may have slowed down one of the world’s greatest rock and roll bands, as lead singer Mick Jagger launched into “I Wanna Be Your Man”.

More than two hours of high-octane, blues-infused rock later, and they were still going strong with an impressive encore comprising “You Can’t Always Get What You Want” and “Jumpin’ Jack Flash”.

In between there were guest appearances from American R&B singer-songwriter Mary J. Blige, who delivered a rousing duet with Jagger on “Gimme Shelter” and guitarist Jeff Beck who provided the power chords for “I’m Going Down”.

Former Rolling Stones Bill Wyman and Mick Taylor were also back in the fold, performing with the regular quartet of Jagger, Ronnie Wood and Keith Richards on guitar and Charlie Watts on drums for the first time in 20 years.

“It took us 50 years to get from Dartford to Greenwich!” said Jagger, referring to their roots just a few miles from the venue in southeast London. “But you know, we made it. What’s even more amazing is that you’re still coming to see us…we can’t thank you enough.”

The Sunday night gig was the first of two at the O2 Arena before the band crosses the Atlantic to play three dates in the United States.

The mini-tour is the culmination of a busy few months of events, rehearsals and recordings to mark 50 years since the rockers first took to the stage at the Marquee Club on London‘s Oxford Street in July, 1962.

There has been a photo album, two new songs, a music video, a documentary film, a blitz of media appearances and a handful of warm-up gigs in Paris.

“STYLE AND PANACHE”

The reunion nearly did not happen. One factor behind the long break since their record-breaking “A Bigger Bang” tour in 2007 has been Wood’s struggle with alcohol addiction, while Jagger and Richards also fell out over comments the guitarist made about the singer in a 2010 autobiography.

But they eventually buried the hatchet, and Richards joked in a recent interview: “We can’t get divorced – we’re doing it for the kids!”

Critics were fulsome in their praise of the first comeback gig.

“Keith Richards has said that the beauty of rock and roll is that every night a different band might be the world’s greatest. Well, last night at the O2 Arena, it was the turn of the Rolling Stones themselves to lay claim to the title they invented,” wrote Neil McCormick of the Daily Telegraph.

“And they did it with some style and panache.”

The big question on every fan’s lips is whether the five concerts lead to a world tour and even new material. The Stones sang their two new tracks “Doom and Gloom” and “One More Shot”, which appeared on their latest greatest hits album “GRRR!”.

Richards has hinted that the five concerts ending at the Newark Prudential Center in the United States on December 15 would not be the last.

“Once the juggernaut starts rolling, it ain’t gonna stop,” he told Rolling Stone magazine. “So without sort of saying definitely yes – yeah. We ain’t doing all this for four gigs!”

The band has come in for criticism from fans about the high price of tickets to the shows – they ranged from around 95 pounds ($ 150) to up to 950 pounds for a VIP seat.

The flamboyant veterans, whose average age is 68, have defended the costs, saying the shows were expensive to put on, although specialist music publication Billboard reported the band would earn $ 25 million from the four shows initially announced. A fifth was added later.

“Everybody all right there in the cheap seats,” Jagger asked pointedly as he looked high to his left at the arena. “They’re not really cheap though are they? That’s the trouble.”

Among the biggest cheers on the night were for classics including “Wild Horses”, “It’s Only Rock and Roll” and “Start Me Up”.

There was even time for the odd reference to their advancing years.

“Good to see you all,” said Richards with a mischievous grin. “Good to see anybody.”

(Reporting by Mike Collett-White, editing by Paul Casciato)

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Leyes no reducen la sobreutilización de costosas terapias del cáncer prostático

NUEVA YORK, 26 nov (Reuters Health) – Dos estudios coinciden

en que las leyes para prevenir el uso excesivo de servicios de

salud no impiden que los médicos sigan indicando terapias

costosas para el cáncer de próstata.

Los autores hallaron que los médicos utilizaban cirugías

robóticas y radioterapias especiales para tratar la enfermedad,

sin importar si en la región existían leyes que exigen una

autorización oficial previa para el uso de instalaciones y

nuevos equipos médicos.

“Las leyes de certificación de necesidad se diseñaron para

alinear la demanda pública con el uso de distintos servicios”,

dijo el doctor Bruce Jacobs, autor principal de uno de los

estudios, de University of Michigan, Ann Arbor.

El gobierno de Estados Unidos impulsó que los estados

implementaran las leyes en los 70 y los 80, pero dejó de hacerlo

un par de décadas después. Aun así, algunos estados siguen

utilizándolas para controlar los costos.

En cada estudio, los autores analizaron tratamientos del cáncer

de próstata, que es el más común en los varones estadounidenses.

La Sociedad Estadounidense del Cáncer estima que a uno de cada

seis hombres se le diagnosticará cáncer prostático, pero que la

mayoría no morirá por esa causa. Estudios previos habían

mostrado que este cáncer es de lento crecimiento y que la

mayoría de los pacientes se puede controlar con espera vigilada.

El equipo de Jacobs revisó si en los estados con normas

estrictas (los que exigen aprobación hasta para el uso de

equipos de bajo costo) se utilizaban menos cirugías robóticas

para extirpar la próstata que en los estados con leyes no tan

estrictas o sin leyes.

En The Journal of Urology, los autores escriben que tanto el

costo de esos robots como si la cirugía robótica supera o no a

la cirugía tradicional para extirpar la próstata deberían ser

“la meta ideal” de revisión donde se aplican esas leyes.

En septiembre, por ejemplo, uno de los estudios que había

cuestionado la utilidad de la cirugía robótica demostró que los

hombres operados con la técnica robótica tuvieron pocas

complicaciones, pero puso en tela de juicio la conveniencia de

sus efectos en el largo plazo y su costo.

Pero otro estudio más reciente mostró que la cirugía robótica

reducía las complicaciones, las reinternaciones y las muertes

por causas quirúrgicas que los métodos tradicionales, según

informó Intuitive Surgical, el fabricante del sistema quirúrgico

da Vinci.

“Eso es importante para el paciente y para reducir el gasto del

sistema de salud”, indicó por e-mail Angela Wonson, vocera de

Intuitive Surgical.

En el nuevo estudio, los autores hallaron un aumento del uso

de la cirugía robótica para extirparle la próstata a un grupo de

beneficiarios de Medicare, independientemente de si el estado

contaba con leyes estrictas, más blandas o ninguna ley. Además,

la posibilidad de que un cirujano utilizara robots no tenía

relación alguna con la vigencia de las normas.

Un segundo estudio, a cargo del doctor Ganesh Palapattu, jefe

de oncología urológica de University of Michigan, analizó si las

leyes limitaban el uso de la radioterapia de intensidad modulada

o IMRT, por su sigla en inglés, o si controlaba el aumento de

los costos de atención del cáncer prostático (la IMRT permite

que los médicos orienten la radiación al tumor sin dañar el

tejido sano que lo rodea).

El equipo escribe que la IMRT es costosa y que, hasta ahora, no

habría sido comparada con otros tratamientos del cáncer de

próstata en un estudio aleatorizado, que es el diseño de

preferencia en la investigación clínica.

Al comparar el costo de tratar a una persona con cáncer

prostático en los estados con leyes y los estados sin leyes, el

equipo observó que las leyes no parecían influir en el control

de los costos de los tratamientos.

Palapattu opinó que es tiempo de reevaluar las leyes.

FUENTE: The Journal of Urology, online 19 de noviembre del

2012.

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Hostess CEO: Why I’m Shutting Down Twinkies

I made the decision to liquidate Hostess last night (Nov. 15). A number of factors have contributed to this. Hostess is 93 percent unionized, and it’s been formed by a number of acquisitions over the decades; a lot of old rules were just grandfathered into contracts from companies that no longer exist. There were all these crazy work rules, like one driver can only drive cake and the other can only drive bread. Hostess went through bankruptcy in 2004 and not enough work was done in that filing to deal with these issues.

I hear that the push toward healthier food is what did us in, but that hasn’t affected us at all. Why do you have chocolate companies? How do you explain doughnut shops when doughnuts haven’t changed in 100 years? We were north of $ 2 billion a year in sales. They weren’t the problem, our cost structure was.

I came on board at Hostess in February, and I was stunned by how little had been accomplished. We managed to make a deal with the Teamsters but the bakers didn’t support what they’d agreed to. I told them that if there’s going to be a strike over the negotiations, we won’t be able to withstand it and we have to liquidate. But I don’t think they believed us. We had 36 Hostess plants when the strike started two weeks ago, but we immediately closed three, so we only had 33 left. Bakers were crossing the picket line in some numbers but not enough to keep things going. Last night I got the update: 11 plants still weren’t operating. After that I communicated with my board and made the decision. That was a difficult call to make. I had people on that call who’d been working 20 hours a day at these plants, trying to make enough product to keep them on the shelves.

I look at this as a failure. I’ve spent a lot of time wondering why we didn’t make more progress. I’m a turnaround guy, I’m a pretty optimistic guy. I don’t think this was the inevitable end. We had a shot at surviving, but we couldn’t overcome the strike. We have potential buyers for our brands and we’ll contact them, but I haven’t even thought about that yet. We sent everyone home from the plants. That’s 18,500 people out of work. — As told to Claire Suddath

Businessweek.com — Top News

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Egypt’s Mursi faces judicial revolt over decree

CAIRO (Reuters) – Egyptian President Mohamed Mursi faced a rebellion from judges who accused him on Saturday of expanding his powers at their expense, deepening a crisis that has triggered violence in the street and exposed the country’s deep divisions.

The Judges’ Club, a body representing judges across Egypt, called for a strike during a meeting interrupted with chants demanding the “downfall of the regime” – the rallying cry in the uprising that toppled Hosni Mubarak last year.

Mursi’s political opponents and supporters, representing the divide between newly empowered Islamists and their critics, called for rival demonstrations on Tuesday over a decree that has triggered concern in the West.

Issued late on Thursday, it marks an effort by Mursi to consolidate his influence after he successfully sidelined Mubarak-era generals in August. The decree defends from judicial review decisions taken by Mursi until a new parliament is elected in a vote expected early next year.

It also shields the Islamist-dominated assembly writing Egypt’s new constitution from a raft of legal challenges that have threatened the body with dissolution, and offers the same protection to the Islamist-controlled upper house of parliament.

Egypt’s highest judicial authority, the Supreme Judicial Council, said the decree was an “unprecedented attack” on the independence of the judiciary. The Judges’ Club, meeting in Cairo, called on Mursi to rescind it.

That demand was echoed by prominent opposition leader Mohamed ElBaradei. “There is no room for dialogue when a dictator imposes the most oppressive, abhorrent measures and then says ‘let us split the difference’,” he said.

“I am waiting to see, I hope soon, a very strong statement of condemnation by the U.S., by Europe and by everybody who really cares about human dignity,” he said in an interview with Reuters and the Associated Press.

More than 300 people were injured on Friday as protests against the decree turned violent. There were attacks on at least three offices belonging to the Muslim Brotherhood, the movement that propelled Mursi to power.

POLARISATION

Liberal, leftist and socialist parties called a big protest for Tuesday to force Mursi to row back on a move they say has exposed the autocratic impulses of a man once jailed by Mubarak.

In a sign of the polarization in the country, the Muslim Brotherhood called its own protests that day to support the president’s decree.

Mursi also assigned himself new authority to sack the prosecutor general, who was appointed during the Mubarak era, and appoint a new one. The dismissed prosecutor general, Abdel Maguid Mahmoud, was given a hero’s welcome at the Judges’ Club.

In open defiance of Mursi, Ahmed al-Zind, head of the club, introduced Mahmoud by his old title.

The Mursi administration has defended the decree on the grounds that it aims to speed up a protracted transition from Mubarak’s rule to a new system of democratic government.

Analysts say it reflects the Brotherhood’s suspicion towards sections of a judiciary unreformed from Mubarak’s days.

“It aims to sideline Mursi’s enemies in the judiciary and ultimately to impose and head off any legal challenges to the constitution,” said Elijah Zarwan, a fellow with The European Council on Foreign Relations.

“We are in a situation now where both sides are escalating and its getting harder and harder to see how either side can gracefully climb down.”

ADVISOR TO MURSI QUITS

Following a day of violence in Cairo, Alexandria, Port Said and Suez, the smell of tear gas hung over the capital’s Tahrir Square, the epicentre of the uprising that toppled Mubarak in 2011 and the stage for more protests on Friday.

Youths clashed sporadically with police near the square, where activists camped out for a second day on Saturday, setting up makeshift barricades to keep out traffic.

Al-Masry Al-Youm, one of Egypt’s most widely read dailies, hailed Friday’s protest as “The November 23 Intifada”, invoking the Arabic word for uprising.

But the ultra-orthodox Salafi Islamist groups that have been pushing for tighter application of Islamic law in the new constitution have rallied behind Mursi’s decree.

The Nour Party, one such group, stated its support for the Mursi decree. Al-Gama’a al-Islamiya, which carried arms against the state in the 1990s, said it would save the revolution from what it described as remnants of the Mubarak regime.

Samir Morkos, a Christian assistant to Mursi, had told the president he wanted to resign, said Yasser Ali, Mursi’s spokesman. Speaking to the London-based Asharq Al-Awsat newspaper, Morkos said: “I refuse to continue in the shadow of republican decisions that obstruct the democratic transition”.

Mursi’s decree has been criticized by Western states that earlier this week were full of praise for his role in mediating an end to the eight-day war between Israel and Palestinians.

“The decisions and declarations announced on November 22 raise concerns for many Egyptians and for the international community,” State Department spokeswoman Victoria Nuland said.

The European Union urged Mursi to respect the democratic process.

(Additional reporting by Omar Fahmy, Marwa Awad, Edmund Blair and Shaimaa Fayed and Reuters TV; Editing by Jon Hemming)

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