US rabbi says jailed American in good health

HAVANA (AP) — A prominent New York rabbi and physician visited an American subcontractor serving a long jail term in Cuba and said the man is in good health, despite his family’s concerns about a growth on his right shoulder.

Rabbi Elie Abadie, who is also a gastroenterologist, told The Associated Press in an exclusive interview following Tuesday’s 2 1/2-hour visit at a military hospital in Havana that he personally examined Alan Gross and received a lengthy briefing from a team of Cuban physicians who have attended him.

He said the 1 1/2-inch growth on Gross’s shoulder appeared to be a non-cancerous hematoma that should clear up by itself.

“Alan Gross does not have any cancerous growth at this time, at least based on the studies I was shown and based on the examination, and I think he understands that also,” Abadie said.

Abadie said the hematoma, basically internal bleeding linked to the rupture of muscle fiber, was likely caused by exercise Gross does in jail. He said the growth ought to eventually disappear on its own.

Gross’s plight has put already chilly relations between Cuba and the United States in a deep freeze. The Maryland native was arrested in December 2009 while on a USAID-funded democracy building program and later sentenced to 15 years in jail for crimes against the state.

He claims he was only trying to help the island’s small Jewish community gain Internet access.

Gross’s health has been an ongoing issue during his incarceration. The 63-year-old, who was obese when arrested, has lost more than 100 pounds while in jail.

Abadie, a rabbi at New York’s Edmund J. Safra Synagogue, said Gross’s weight is appropriate for a man his age and height.

Photos that Abadie and a colleague provided to AP of Tuesday’s meeting with Gross showed him looking thin, but generally appearing to be in good spirits.

In one photo, Gross holds up a handwritten note that says “Hi Mom.”

“He definitely feels strong. He is in good spirits. He feels fit, to quote him, physically. But of course, like any other person who is incarcerated or in prison, he wants to be free. He wants to be able to go back home,” Abadie said.

Gross’s family has repeatedly appealed for his release on humanitarian grounds, noting his health problems and the fact that his adult daughter and elderly mother have both been battling cancer.

Jared Genser, counsel to Alan Gross, said late Tuesday that Rabbi Abadie is not Gross’s physician and he would like an oncologist of his choosing to evaluate him.

“While we are grateful Rabbi Abadie was able to see Alan, we have asked an oncologist to review the test results to determine if they are sufficient to rule out cancer. More importantly, if Alan is so healthy, we cannot understand why the Cuban government has repeatedly denied him an independent medical examination by a doctor of his choosing as is required by international law,” said Genser.

Gross and his wife recently filed a $ 60 million lawsuit against his former Maryland employer and the U.S. government, saying they didn’t adequately train him or disclose risks he was undertaking by doing development work on the Communist-run island.

They filed another lawsuit against an insurance company they say has reneged on commitments to pay compensation in case of his wrongful detention.

Separately, a lawyer for Gross has written the United Nations’ anti-torture expert, saying Cuban officials’ treatment of his client “will surely amount to torture” if he continues to be denied medical care.

Rumors have been swirling in U.S. media that Cuba might soon release Gross as a gesture of good will or in the hopes of winning concessions from the administration of President Barack Obama, but Abadie said that those reports appeared to be false.

“As far as I know there is no truth to it,” he said.

Abadie said he met with senior Cuban officials who expressed their desire to resolve the case “as quickly as possible,” but would not say specifically who he spoke with or what they offered.

“They claim that they are more than willing to sit at the table,” he said.

Cuban officials have strongly implied they hope to trade Gross for five Cuban agents sentenced to long jail terms in the United States, one of whom is already free on bail.

Abadie said Gross made clear that he does not want his case linked to that of the agents, known in Cuba as “The Five Heroes,” because he does not believe he is guilty of espionage.

But Abadie said Gross is hoping for a “constructive and productive” dialogue between U.S. and Cuban officials to resolve his case.

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Follow Paul Haven on Twitter: http://www.twitter.com/paulhaven.

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U.S. for-profit colleges spend big on marketing while slashing other costs

(Reuters) – Google‘s biggest advertiser is neither a bank nor a retailer.

It’s the for-profit University of Phoenix, which has recently been spending nearly $ 400,000 a day on ads, more than any financial firm or retailer, the traditional big spenders on online advertising, according to search analytics firm SpyFu.

That kind of spending may seem surprising coming from a college, but marketing has become vital for the university and its for-profit rivals as enrollments plummet and they fight back against a host of criticisms, including low job-placement rates.

Colleges such as University of Phoenix, the industry leader owned by Apollo Group Inc, will not only have to boost enrollments to reverse their fortunes, analysts say. They will also need to consider cutting tuition fees as well as continue to slash costs and take market share from rivals.

“I have witnessed several versions of this cycle but none as extreme as this,” said Trace Urdan, an analyst with Wells Fargo Securities, who has been covering the U.S. for-profit education industry for about 15 years.

“We are going to see more pointed efforts at marketing and more price competition in an effort to try to capture more market share both from each other as well as from traditional schools,” Urdan said.

Operators of other for-profit colleges, whose ranks include the Washington Post Co’s Kaplan business, DeVry Inc and ITT Educational Services Inc, are also boosting their spending on marketing and are among the 25 biggest advertisers on Google.

But no one is spending like the University of Phoenix, which doubled its spending on Google ads to about $ 380,000 per day on average between October 12 and November 12, compared with $ 170,000 a day in the previous month, according to SpyFu.

Increased marketing alone will not be enough to fatten fast-shrinking profit margins and increase enrollments, however. Lower tuition fees and increased specialization of the type of programs offered, along with further streamlining of operations, will also be necessary, analysts say.

Industry bellwether University of Phoenix, which offers courses at about 230 campuses as well as online, announced plans last month to shut about half its locations and cut 800 jobs in order to save about $ 300 million a year by 2014.

New enrollments in the Apollo system are down nearly 50 percent in the past two years. As of August 31, enrollment totaled about 328,000.

Career Education Corp, which owns American InterContinental University and the Le Cordon Bleu colleges, and Lincoln Educational Services Corp have also announced closures.

LOW-COST MODEL

The $ 25 billion industry, which typically serves adults looking for a career change or a program to enhance job skills, is reeling after government investigations revealed fraud related to financial aid, worryingly high student debt loads and low rates of graduation and job placement.

“Many for-profit colleges make decisions that prioritize their bottom line, even when those decisions limit their students’ opportunities for academic success,” a U.S. Senate report said earlier this year.

Tuition fees, and therefore profits, is one area under pressure as potential students need to be convinced to take out loans in an uncertain job market.

Apollo, whose stock has lost about 65 percent of its value this year, implemented a tuition freeze earlier this year and promised students it will not increase prices through the course of their programs.

Apollo is also looking at different cost models, with a view to serving segments of the population that it cannot serve with current University of Phoenix tuition prices.

“We have certainly seen a lot more competition at the lower end of the price scale, and that’s something we are focusing on,” Apollo spokesman Mark Brennar said, while declining to offer specifics.

Wells Fargo’s Urdan said it is likely that Apollo wants to compete in the low-cost end of the market by building a second brand, which it would likely do by acquiring another college rather than starting from scratch.

As colleges lower their revenue base by cutting tuition fees even as they spend more on marketing, lower margins could become the norm, analysts say. That has spooked investors already worried about sliding enrollments.

The S&P 1500 Education Services index has lost three-quarters of its value since April 2010, including a 50 percent decline in 2012.

Some for-profit colleges already differentiate themselves in the crowded higher-education market by offering programs in a particular field or by targeting students of a particular background, and that trend could accelerate.

American Public Education, for example, is known for enrolling those who work in the military and public services, while Universal Technical Institute offers programs related to the automotive industry.

For-profit colleges play up their links to employers to attract students who may otherwise opt for traditional or community colleges, said Rob Lytle, head of the education practice at advisory firm Parthenon Group.

“They are about getting people workforce employability skills, and I think they are going to be focusing tighter on that,” said Lytle.

(Reporting by A. Ananthalakshmi in Bangalore; Editing by Ted Kerr)

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New Jersey’s Christie, more popular than ever, seeks re-election

NEW YORK (Reuters) – New Jersey Governor Chris Christie, a Republican star who has enjoying record-high popularity for his hands-on approach to Superstorm Sandy, on Monday filed papers announcing his intention to seek a second term next November.

Christie, a popular surrogate on Republican Mitt Romney‘s failed presidential campaign, delivered the keynote address at the Republican National Convention this summer and is considered a popular choice to run for president in 2016.

Despite his popularity on the national stage, Christie – known for his blunt, sometimes over-the-top style – has sometimes struggled to win over his constituents in liberal New Jersey, where Democrats control both houses of the legislature.

Since Sandy tore through the state on October 29, laying waste to large stretches of the Jersey Shore, Christie’s approval rating has jumped 19 percentage points.

Christie appeared to set politics aside, touring the damage with Democratic President Barack Obama days before November 6 Election Day, and showing a personal touch with residents who lost their homes or loved ones in the storm.

Christie has a 67 percent favorability rating among registered voters, up from 48 percent in October, according to the Rutgers-Eagleton poll.

Since taking office three years ago, Christie’s signature achievement has been a 2011 law that made sweeping changes to the state’s pensions and health benefits for state workers.

(Reporting by Edith Honan; Editing by Jackie Frank)

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Leading U.S. Democrat Durbin embraces future Medicare reforms

WASHINGTON (Reuters) – Assistant Senate Democratic Leader Dick Durbin, one of U.S. President Barack Obama‘s leading allies, urged fellow liberals on Tuesday to consider reforming the Medicare and Medicaid healthcare programs that they have long fought to shield from cuts.

“Progressives should be willing to talk about ways to ensure the long-term viability of Medicare and Medicaid” programs for the elderly and poor, Durbin said in excerpts of a speech he is to deliver later in the day.

Most Democrats have avoided talking about cutting these two “entitlement” programs, which have been adding to U.S. budget deficits because of the growing numbers of participants and escalating healthcare costs.

Instead, Obama and Democrats in Congress mostly have stressed the need to raise income taxes on the wealthy as part of renewed efforts to reduce budget deficits that have topped $ 1 trillion in each of the past four years.

Lately, Durbin has made high-profile remarks about eventually reducing Medicare and Medicaid costs, just as Republicans have begun talking about raising revenues as part of a tax overhaul effort next year.

On Sunday, Durbin raised the possibility of Democrats accepting Medicare reforms to make higher-income seniors pay more for their care. He made his remarks on ABC’s “This Week” program.

The Illinois senator said, however, that the debate over Medicare and Medicaid should not be part of the more immediate negotiations on averting the “fiscal cliff” of steep tax hikes and spending cuts.

“Meaningful reforms can protect the vulnerable and improve care and efficiency, leaving the programs stronger for future generations,” Durbin said in excerpts of the speech he is to deliver at the Center for American Progress, a liberal think tank.

Durbin’s remarks sought to foster productive talks aimed at averting on January 1 the fiscal cliff, the start of about $ 600 billion worth of tax hikes and automatic spending cuts that could shove the nation into a recession early next year if allowed to go forward.

The key battle pits Republican demands for deep spending cuts against Democrats’ insistence on tax hikes for the wealthiest Americans.

“We can and we should avoid ‘the fiscal cliff’ by acting now – before January 1st – to extend middle class tax cuts for 98 percent of the American people and allow the tax cuts to expire for those earning over $ 250,000 a year,” Durbin said.

Republicans could block any bill that does not extend all tax cuts. But after January 1, with all tax cuts expired, Democrats could draft a bill that cuts taxes only for those earning up to $ 250,000, cranking up pressure on Republicans to go along.

Durbin said decisions on Medicare and Medicaid should not be put off too long.

“Putting the discussions off indefinitely makes our choices harder, our success less likely and negative effects on current beneficiaries a near certainty,” he said.

(Reporting by Thomas Ferraro; Editing by Jackie Frank)

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ConAgra to buy Ralcorp for $5 billion

(Reuters) – Long-time suitor ConAgra Foods Inc finally sealed a deal to buy Ralcorp Holdings Inc for $ 5 billion to become the biggest private label food company in North America.

Ralcorp shareholders will receive $ 90 per share in cash, representing a premium of 28.2 percent to the stock’s Monday close, ConAgra said.

Ralcorp shares were trading at $ 88.50 before the bell. They closed at $ 70.23 on the New York Stock Exchange on Monday.

The deal is valued at $ 6.8 billion including debt, ConAgra said in a statement on Tuesday.

Ralcorp last year rejected several ConAgra offers, including a $ 94 per share bid that valued the company at $ 5.2 billion, and chose instead to spin off its Post cereal business.

With Tuesday’s deal, the combined market value of Ralcorp and Post Holdings Inc is about $ 6.12 billion.

Activist investor Corvex Management, Ralcorp’s largest shareholder, in August demanded that the food manufacturer either sell itself, buy another company or change its strategy after a series of earnings disappointments.

ConAgra said the deal, which was approved by the boards of both companies, will add to earnings in the first year.

ConAgra’s shares closed at $ 28.29 on the New York Stock Exchange on Monday.

(Reporting by Siddharth Cavale in Bangalore; Editing by Sriraj Kalluvila)

(This story was refiled to correct the month to August from October in the seventh paragraph)

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Mexican beauty queen killed in shootout

CULIACAN, Mexico (AP) — A 20-year-old state beauty queen died in a gun battle between soldiers and the alleged gang of drug traffickers she was traveling with in a scene befitting the hit movie “Miss Bala,” or “Miss Bullet,” about Mexico’s not uncommon ties between narcos and beautiful pageant contestants.

The body of Maria Susana Flores Gamez was found Saturday lying near an assault rifle on a rural road in a mountainous area of the drug-plagued state of Sinaloa, the chief state prosecutor said Monday. It was unclear if she had used the weapon.

“She was with the gang of criminals, but we cannot say whether she participated in the shootout,” state prosecutor Marco Antonio Higuera said. “That’s what we’re going to have to investigate.”

The slender, 5-foot-7-inch brunette was voted the 2012 Woman of Sinaloa in a beauty pageant in February. In June, the model competed with other seven contestants for the more prestigious state beauty contest, Our Beauty Sinaloa, but didn’t win. The Our Beauty state winners compete for the Miss Mexico title, whose holder represents the country in the international Miss Universe.

Higuera said Flores Gamez was traveling in one of the vehicles that engaged soldiers in an hours-long chase and running gun battle on Saturday near her native city of Guamuchil in the state of Sinaloa, home to Mexico’s most powerful drug cartel. Higuera said two other members of the drug gang were killed and four were detained.

The shootout began when the gunmen opened fire on a Mexican army patrol. Soldiers gave chase and cornered the gang at a safe house in the town of Mocorito. The other men escaped, and the gunbattle continued along a nearby roadway, where the gang’s vehicles were eventually stopped. Six vehicles, drugs and weapons were seized following the confrontation.

It was at least the third instance in which a beauty queen or pageant contestants have been linked to Mexico’s violent drug gangs, a theme so common it was the subject of a critically acclaimed 2011 movie.

In “Miss Bala,” Mexico’s official submission to the Best Foreign Language Film category of this year’s Academy Awards, a young woman competing for Miss Baja California becomes an unwilling participant in a drug-running ring, finally getting arrested for deeds she was forced into performing.

In real life, former Miss Sinaloa Laura Zuniga was stripped of her 2008 crown in the Hispanoamerican Queen pageant after she was detained on suspicion of drug and weapons violations. She was later released without charges.

Zuniga was detained in western Mexico in late 2010 along with seven men, some of them suspected drug traffickers. Authorities found a large stash of weapons, ammunition and $ 53,300 with them inside a vehicle.

In 2011, a Colombian former model and pageant contestant was detained along with Jose Jorge Balderas, an accused drug trafficker and suspect in the 2010 bar shooting of Salvador Cabanas, a former star for Paraguay‘s national football team and Mexico’s Club America. She was also later released.

Higuera said Flores Gamez’s body has been turned over to relatives for burial.

“This is a sad situation,” Higuera told a local radio station. She had been enrolled in media courses at a local university, and had been modeling and in pageants since at least 2009.

Javier Valdez, the author of a 2009 book about narco ties to beauty pageants entitled “Miss Narco,” said “this is a recurrent story.”

“There is a relationship, sometimes pleasant and sometimes tragic, between organized crime and the beauty queens, the pageants, the beauty industry itself,” Valdez said.

“It is a question of privilege, power, money, but also a question of need,” said Valdez. “For a lot of these young women, it is easy to get involved with organized crime, in a country that doesn’t offer many opportunities for young people.”

Sometimes drug traffickers seek out beauty queens, but sometimes the models themselves look for narco boyfriends, Valdez said.

“I once wrote about a girl I knew of who was desperate to get a narco boyfriend,” he said. “She practically took out a classified ad saying ‘Looking for a Narco’.”

The stories seldom end well. In the best of cases, a beautiful woman with a tear-stained face is marched before the press in handcuffs. In the worst of cases, they simply disappear.

“They are disposable objects, the lowest link in the chain of criminal organizations, the young men recruited as gunmen and the pretty young women who are tossed away in two or three years, or are turned into police or killed,” Valdez said.

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Associated Press Writer E. Eduardo Castillo contributed to this report

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Card firms’ block on WikiLeaks did not break rules: EU

BRUSSELS (Reuters) – A block on processing donations for WikiLeaks by Visa Europe and other credit card companies is unlikely to have violated EU anti-trust rules, the European Commission said on Tuesday.

DataCell, a company that collected donations for WikiLeaks, complained to the Commission about Visa Europe, MasterCard Europe and American Express Co after they stopped processing donations for WikiLeaks in December 2010. Their decisions followed criticism by the United States of WikiLeaks’ release of thousands of sensitive U.S. diplomatic cables.

“On the basis of the information available, the Commission considers that the complaint does not merit further investigation because it is unlikely that any infringement of EU competition rules could be established,” said a spokesman for the Commission, the EU executive.

He added, however, that the Commission would look at new information from DataCell before taking a final decision.

WikiLeaks founder Julian Assange has been staying in Ecuador’s embassy in central London since June to avoid extradition to Sweden to face rape and sexual assault allegations.

Assange said there were no lawful grounds for the card companies’ actions, which he said had cost Wikileaks 95 percent of its revenue and threatened his organization’s existence.

(Reporting by Foo Yun Chee and Adrian Croft; Editing by Louise Heavens)

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UnitedHealth forecasts 2013 profit below Wall St view

(Reuters) – UnitedHealth Group Inc , the largest U.S. private health insurer, said on Monday it expected 2013 earnings of $ 5.25 to $ 5.50 per share, below analysts‘ expectations.

Revenue should be $ 123 billion to $ 124 billion, the company said, higher than the Wall Street target. UnitedHealth gave the forecast in a statement ahead of a Tuesday meeting with analysts and investors.

Analysts had expected 2013 earnings of $ 5.58 per share on revenue of $ 119.12 billion, according to Thomson Reuters I/B/E/S.

UnitedHealth said during a quarterly conference call in October that analysts’ estimates for 2013 were too high, citing the weak economy and government efforts to rein in the deficit. At that time, the consensus was for earnings of $ 5.60 per share.

UnitedHealth has a history of exceeding its forecast, Oppenheimer analyst Michael Wiederhorn said in a research note. “Overall, we believe UNH’s outlook will prove conservative,” he wrote.

Wiederhorn said it was not immediately clear if the Wall Street consensus outlook for 2013 revenue was comparable and included sales from Brazil’s Amil Participacoes SA , which it acquired for $ 4.9 billion.

UnitedHealth also reaffirmed its 2012 outlook for earnings of $ 5.20 to $ 5.25 per share.

(Reporting by Caroline Humer; Editing by Lisa Von Ahn and Jeffrey Benkoe)

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Is Jordan Headed for an Arab Spring?

In 2011, during the first wave of the Arab Spring, Jordan stood out as an oasis of stability. Recurrent but largely peaceful protests demanding political reform led to two prime ministers being sacked by King Abdullah II in February and October. This year, in the movement’s next wave, some protesters have shifted their focus to direct criticism of the  monarch—an act that can lead to a prison sentence of up to three years in the kingdom. Could King Abdullah, an American ally in a highly unstable region, be the next casualty of popular upheaval?

That’s unlikely at this point mostly because protesters still focus mainly on reforms, both political and economic. They appear willing to give the king one more chance. Whatever he proposes, we can certainly expect a bumpy road before the monarch manages to reclaim any domestic legitimacy, especially after almost two years of significant political and economic crises. Not helping are the growing presence of jihadists —11 members of an al Qaeda-linked cell were arrested in October in an alleged local bomb plot—and the influx of more than 100,000 refugees from neighboring Syria.

In early September, thousands of protesters in nine of Jordan’s 12 provinces demanded the resignation of Prime Minister Fayez al-Tarawneh after the government decided to raise fuel prices by 10 percent. Although King Abdullah promptly suspended the government’s move, some protesters openly mocked him, leading to at least 15 arrests. In October, more than 10,000 Jordanians protested for political reforms in the capital, Amman, despite the king’s call for early elections and plans for electoral reform.

Most recently, in mid-November, thousands protested in cities and towns in more than 100 demonstrations across Jordan following the government’s decision to lower fuel subsidies once again—this time to avoid complete economic collapse by reducing the country’s budget deficit and securing a $ 2 billion loan from the International Monetary Fund. In some rallies, protesters spoke out against the king; in Dhiban, some burned pictures of him. The Islamist opposition—the Muslim Brotherhood’s Islamic Action Front (IAF) party—has been vocal about its intention to keep protests going, despite the use by riot police of water canons and tear gas on protesters. So far 17 civilians and 58 policemen have been hurt, one protester has been killed, and 158 have been arrested. The military has said it will use “an iron fist” against protesters who “harm public or private facilities or citizens.”

All this unrest exacerbates a severe political crisis. Besides the dismissal of two prime ministers in 2011, three prime ministers have already held power this year: Awn al-Khasawneh, Fayez al-Tarawneh, and the current leader, Abdullah Ensour. King Abdullah has called for elections to be held on Jan. 23, but the opposition—particularly the IAF—has announced plans to boycott the election. Despite concessions by the king that include a constitutional court and an election that will apparently produce an elected prime minister for the first time, rather than one appointed by the monarch, the unrest will probably continue until the IAF and the monarchy reach some consensus about the election.

The economic crisis is severe. Unemployment stands officially at more than 11 percent, but unofficial estimates suggest it is as high as 30 percent. Prices of such basic items as heating kerosene and cooking gas have, respectively, increased by more than 30 percent and 50 percent following the removal of government subsidies. The country faces a significant energy crisis. Much-needed aid from Saudi Arabia and other Arab nations has not yet been delivered. The monarch’s promise of “comprehensive development” clearly isn’t appeasing anyone.

There’s no question that King Abdullah’s domestic legitimacy has eroded significantly in the last two months. This growing legitimacy crisis will continue into 2013—unless there arrives some kind of political agreement involving the IAF, along with economic concessions providing immediate popular relief. If not, Jordan’s days of absolute monarchy could be numbered, despite international support from the U.S., Israel, and other Arab monarchies.

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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.

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