Hedge fund manager Whitney Tilson also shorts Herbalife









Another hedge fund manager is joining Bill Ackman in the ranks of Herbalife haters.


Whitney Tilson, who helps run three hedge funds and two mutual funds through T2 Partners, said in a mass email Wednesday that he’s short “a tiny smidge” of Herbalife and other so-called multilevel marketers who sell products through individual distributors.


Herbalife, the Los Angeles provider of health supplements, has seen its stock tumble 40% in four trading days after Ackman last week accused the company of operating as a pyramid scheme.





Ackman, the head of Pershing Square Capital Management, said he was shorting, or betting against, Herbalife and laid out his allegations in a detailed presentation in New York.


Tilson’s email message called Ackman’s argument “the most remarkable piece of investment analysis I have ever seen. Simply astonishing,” according to ValueWalk.


In the missive, Tilson wrote that he hopes Ackman’s campaign against the multilevel marketer “results in massive reform of this whole sector, which has preyed upon MILLIONS of vulnerable people all over the world for decades.”


In the last 52 weeks, Herbalife shares have lost about half of their value. Most of that plunge came after Ackman’s attack. In Wednesday trading, however, the stock was recovering, up as much as 8.8% to $28.35 a share.


Herbalife said last week that it will wait until next month to respond to Ackman’s allegations.


ALSO:


Hedge fund manager alleges Herbalife is 'pyramid scheme'


Herbalife stock tumbles for a 4th day on 'pyramid scheme' claims


Herbalife to answer 'pyramid scheme' claim; stock slide continues





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Problems with new 787 Dreamliner continue to plague Boeing









Aerospace giant Boeing Co. just can't seem to escape trouble with its new 787 Dreamliner passenger jet.


More than three years late because of design problems and supplier issues, the much-anticipated plane has run into another bout of turbulence with fresh concerns about its safety.


The Federal Aviation Administration this month ordered inspections of fuel line connectors on Dreamliners because of risks of leaks and possible fires.





PHOTOS: Inside the Dreamliner


On the same day, a United Airlines Dreamliner flight from Houston to Newark, N.J., was diverted to New Orleans after an electrical problem popped up mid-flight. After accepting delivery of the aircraft just a month earlier, Qatar Air later said it had grounded a Dreamliner for the same problem that United experienced.


Despite criticism of the problem-plagued program, Boeing is confident that the plane will be a success once it gets more miles under its wings.


"We're having what we would consider the normal number of squawks on a new airplane, consistent with other new airplanes we've introduced," Boeing Chief Executive Jim McNerney said in an interview on cable network CNBC.


"We regret the impact on our customers, obviously," he said. "But … we're working through it."


The Dreamliner, a twin-aisle aircraft that seats 210 to 290 passengers, is the first large passenger jet with more than half its structure made of composite materials (carbon fibers meshed together with epoxy) instead of aluminum sheets. Major parts for the plane are assembled elsewhere and then shipped to Everett, Wash., where they are "snapped together" in three days, compared with a month the traditional way.


Chicago-based Boeing says the new plane burns 20% less fuel than other jetliners of a similar size. Because of this, the plane has been hotly sought-after. Through November, Boeing had delivered 38 Dreamliners.


The company has taken 844 orders for the plane from airlines and aircraft leasing firms around the world. Depending on the version ordered, the price ranges from $206.8 million to $243.6 million per jet.


Early customers get massive rebates on the first planes delivered because of bugs that may pop up in production. The plane maker sells these early aircraft at a loss.


David E. Strauss, an aerospace analyst at UBS Financial Services, said in a note to investors this month that his analysis indicates Dreamliner production "costs are not declining rapidly enough for [Boeing] to come close to its target for break-even 787 cash flow by early 2015."


Boeing spokesman Chaz Bickers said he would not comment on Strauss' analysis, but he did say that the company had already cut its production cost per plane by half. He did not specify how much that was.


"We're very pleased on the progress and confident on our processes," he said. "Once we get to 10 Dreamliners a month and stay there, that's when we expect a healthy production system."


Boeing is currently making five Dreamliners a month. The company doesn't plan on reaching 10 a month until late next year.


Many of the planes so far have gone to Japanese carrier All Nippon Airways, which has 16 of them. The airline said the Dreamliner has exceeded its expectations.


Since All Nippon began flying the planes in November 2011, it has flown nearly 7 million miles and saved 21% more fuel per flight than a different aircraft of similar size. The company also took a customer survey that found 98% of passengers said they would like to fly again on the Dreamliner.


"This is better than what we initially expected," said Kohei Tsuji, an All Nippon spokesman. "And the financial impact will only grow bigger for ANA as we continue to operate more Dreamliners."


Scott Hamilton, an aviation industry consultant and managing director of Leeham Co. in Issaquah, Wash., said that the latest Dreamliner problems are "irritants more than substance."


"The 787 problems are annoying for the airlines and embarrassing for Boeing," he said. "But I don't see these as major issues to worry about."


william.hennigan@latimes.com





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Jessica Simpson's Christmas gift: She's pregnant


NEW YORK (AP) — Jessica Simpson's daughter has the news all spelled out: "Big Sis."


Simpson on Tuesday tweeted a photo of her baby daughter Maxwell playing in the sand, the words "Big Sis" spelled out.


The 32-year-old old singer and personality has been rumored to be expecting again. The tweet appears to confirm the rumors.


"Merry Christmas from my family to yours" is the picture's caption. Simpson used a tweet on Halloween in 2011 to announce she was pregnant with Maxwell. She is engaged to Eric Johnson and gave birth to Maxwell in May.


One possible complication regarding her pregnancy: She is a spokeswoman for Weight Watchers.


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Corporate tax rate overhaul may be part of a 'fiscal cliff' deal









WASHINGTON — Amid the wrangling over the so-called fiscal cliff, President Obama and congressional Republicans can agree on something: They want to lower the corporate tax rate.


The U.S. has the highest overall rate of any of the world's developed economies. It took the top spot in March after Japan reduced its rate, mimicking other countries that have lowered taxes to lure new businesses and keep existing companies from leaving.


Negotiations to avert automatic income tax increases and federal spending cuts scheduled to kick in Jan. 1 could provide the impetus for U.S. policymakers to tackle an overhaul of the corporate tax code next year.





The White House wants to put a corporate tax overhaul, along with changes to the individual income tax system, on a fast track as part of any deal to avoid the "fiscal cliff."


The centerpiece of an overhaul would be slashing the 35% corporate tax rate, a goal long sought by corporate executives and lobbyists.


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


"In the name of global competitiveness, I think that has largely been agreed to," Jim McNerney, chief executive of Boeing Co., said about how both parties view the need for major corporate tax changes.


In February, Obama proposed lowering the federal rate to 25% for manufacturing companies and to 28% for other firms. Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, has been pushing a plan to lower the rate to 25% for all corporations.


In both cases, the rate cuts would be accompanied by the elimination of some of the numerous tax breaks that allow many companies to pay a much lower effective tax rate — and sometimes to avoid paying any corporate taxes at all.


"The administration's position on this is very much in sync with what Republicans say they want, which is a lower rate and a broader base," said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and the former chief economist for Vice President Joe Biden.


But there still are some obstacles to a deal.


Some Democrats want to use an overhaul to increase the amount of tax revenue coming from corporations, while Republicans want to keep the amount the same. The White House and congressional Republicans also differ on how the U.S. should treat money earned abroad.


And the business community itself is divided. Many small companies file taxes as individuals. They're opposed to any "fiscal cliff" deal that would raise their rates while giving corporations a rate reduction.


Analysts said the obstacles could be overcome because there is consensus around the broader point that the U.S. needs to bring its corporate tax rate in line with other developed nations.


"Regardless of your political persuasion, it is unquestionably the case that the nominal U.S. corporate tax rate is much higher than that of peer countries," said Edward Kleinbard, a USC law professor and former chief of staff of Congress' Joint Committee on Taxation.


The case for corporate tax reform got a boost when the overall U.S. rate of 39.1%, which includes federal, state and local corporate taxes, became the highest this year among the 34 nations in the Organization for Economic Cooperation and Development. Two decades ago, the U.S. was 13th.


"At one time in the '80s, we had a competitive corporate tax rate," said Dorothy Coleman, vice president of tax and domestic economic policy for the National Assn. of Manufacturers. "We've fallen behind by standing still."


Quiz: The year in business


But the rate in the tax code isn't what many companies pay because of a host of deductions and tax credits. In 2011, the effective corporate tax rate in the U.S. was 29.2%, roughly in line with the 31.9% average of the six other largest developed economies, the Obama administration said.


The White House said that parity does not mean the statutory rate shouldn't be reduced. It simply means that many tax breaks should be eliminated, allowing the rate to be lowered without adding to the deficit.





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Dueling Santa trackers are off and running













Google's Santa Tracker


A screen grab from Google's Santa Tracker.
(Google / December 24, 2012)





































































All year long Santa keeps an eye on you. Now it's time to turn the tables.


One day a year, you are invited to keep an eye on Santa as he whips around the world in his sleigh, delivering a dizzying number of presents to children all over the world.


If you'd like to see where Santa is at the moment, you've got choices. Google and NORAD, which used to team up for your Santa tracking pleasure, have gone their separate ways this year and created two distinct tracking options.





Google's Santa Tracker is the slicker of the two. It takes you to Santa's Dashboard, where you can see Santa's current location, his next location, the number of miles traveled, and the number of presents delivered. Santa is also adding Twitter like status updates. The most recent one as of this writing: "Rudolph's nose just turned red." 


PHOTOS: Google Doodles of 2012


You can also click on the map and see where Santa has been, as noted by little present icons on the map. Click on the icon and you'll see how many presents Santa has delivered in each city. When Santa is on the move, you'll see him flying on the map in a sleigh. When he's stopped to deliver presents, you'll see him shoving presents down a chimney.


Over at the official NORAD Tracks Santa website you'll also find a running tally of how many presents Santa has delivered as well as what city he just left and what city he's currently headed toward. NORAD also offers Santa Cams that show animations of Santa flying around the world. 


Both Santa tracking services offer loads of extras. If you visit Santa's Village on Google's tracker you can send a message from  Santa to a friend or family member. And NORAD has more than 1,200 volunteers staffing a Santa hotline to answer all your Santa questions.  (877-HI-NORAD).


In the spirit of the season you might try them both out, but hurry up. The trackers shut down a few hours before Christmas morning. 


Happy tracking!


ALSO:


Rumored iPad 5 to be thinner -- and land in March



Battle of the Santa trackers: Google takes on NORAD


Google+

deborah.netburn@latimes.com

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Sprint salesman refuses to sell iPhone to customer, says his ‘fingers are too fat’ to use it







We’ve known for a while now that some mobile carriers have been instructing their sales staff to start pushing their customers away from Apple’s (AAPL) iPhone and toward Android or Windows Phone devices. The reason is simple: carriers pay a lot more to subsidize Apple’s popular smartphone than they do with other devices and they’d prefer to have higher gross margins at the end of each quarter. But now a Tom’s Hardware reader reports that a Sprint (S) representative has taken pushing non-iPhone products to a whole new level and is actually insulting people who insist on buying the device.


[More from BGR: Online retailers caught using ‘discriminatory’ practices to target shopping discounts]






When the customer told the Sprint representative that he wanted to get an older iPhone 4 for free as part of his upgrade, the representative called the device “a piece of s—” that breaks too easily and is too small for many users.


[More from BGR: First photos of BlackBerry 10 ‘N-Series’ QWERTY smartphone leak]


Instead, the salesman recommended that the customer by a Samsung (005930) Galaxy S III. When the customer again refused, the salesman took things a step farther and told the man that his fingers were simply too fat to use the iPhone and that he’d need a larger screen to use a smartphone properly.


Needless to say, these up-sell-by-insult tactics weren’t exactly effective for the salesperson and the customer angrily stormed out of the store without buying a new phone.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News





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Thousands sign US petition to deport Piers Morgan


LONDON (AP) — Tens of thousands of people have signed a petition calling for British CNN host Piers Morgan to be deported from the U.S. over his gun control views.


Morgan has taken an aggressive stand for tighter U.S. gun laws in the wake of the Newtown, Connecticut, school shooting. Last week, he called a gun advocate appearing on his "Piers Morgan Tonight" show an "unbelievably stupid man."


Now, gun rights activists are fighting back. A petition created Dec. 21 on the White House e-petition website by a user in Texas accuses Morgan of engaging in a "hostile attack against the U.S. Constitution" by targeting the Second Amendment. It demands he be deported immediately for "exploiting his position as a national network television host to stage attacks against the rights of American citizens."


The petition has already hit the 25,000 signature threshold to get a White House response. By Monday, it had 31,813 signatures.


Morgan seemed unfazed — and even amused — by the movement.


In a series of Twitter messages, he alternately urged his followers to sign the petition and in response to one article about the petition said "bring it on" as he appeared to track the petition's progress.


"If I do get deported from America for wanting fewer gun murders, are there any other countries that will have me?" he wrote.


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Measles: Measles Epidemic Is Spreading in Central Africa


Jehad Nga for The New York Times


An internally displaced persons camp in Goma, in the Democratic Republic of Congo. In addition to recent violence in the country, a spreading measles epidemic is further endangering the lives of thousands of children there.







A large measles epidemic is spreading in Central Africa, endangering the lives of thousands of children, the medical charity Doctors Without Borders warned last week.




Since October, the charity has vaccinated more than 226,000 children in the eastern part of the Democratic Republic of Congo. The organization has also treated nearly 13,000 Congolese for the effects of the disease.


Measles is very contagious. In places where many children are malnourished and vitamin-deficient, it kills 1 percent to15 percent of those who don’t receive medical care, Doctors Without Borders estimated. (Even in the United States in the 1990s, although cases were rare, the fatality rate was 0.3 percent, according to the Centers for Disease Control and Prevention. In AIDS patients, the rate is 30 percent.)


The eastern Congo basin has serious shortages of medical workers and of drugs. While there is no treatment for measles itself, antibiotics can save those who develop pneumonia, meningitis or other secondary infections. Measles can also cause blindness by scarring the eyeball.


The outbreak is taking place despite enormous success against the disease worldwide. According to a study released earlier this year, deaths from measles have dropped by almost 75 percent since 2000.


Most of the lives saved were in Africa and India. Measles shots are often cited as one of the chief reasons that deaths of children under age 5 around the world have fallen steadily.


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Online holiday shoppers spent $1 billion on 'Free Shipping Day'









Shoppers scrambling to buy last-minute presents but avoid the malls spent $1.01 billion on this year's Free Shipping Day.


The annual event is scheduled to take place on the last day that orders delivered by ground can be guaranteed to arrive by Christmas. This year, that was Monday, Dec. 17, when more than 1,000 retailers offered free shipping.


Free Shipping Day was the beginning of a hectic workweek for online merchants, who raked in $3.69 billion during last week's five weekdays, up 53% from the same period last year, according to research firm ComScore.





"The fact that Free Shipping Day occurred on a Monday, combined with the fact that so many retailers extended their promotions into the middle of the week -- with guaranteed shipping by Christmas -- helped deliver an encouraging late-season surge," said ComScore Chairman Gian Fulgoni.


The busiest online shopping day of the year was again Cyber Monday -- Nov. 26 this year -- with a record $1.47 billion of spending, followed by Tuesday, Dec. 4, and then Dec. 10 (also known as Green Monday).


During the holiday shopping season online retailers racked up a dozen days that each surpassed more than $1 billion in spending, topping last year's total of 10 days.


ALSO:


Stores offer same-day delivery to compete with Amazon


Best Buy extends deadline for founder to make takeover bid


Stores hope last-minute Christmas shoppers revive holiday sales


Follow Shan Li on Twitter @ShanLi





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Raging fire guts Kabul market









KABUL, Afghanistan -- Firefighters battled through the night to contain a raging fire that swept through a market in the Afghan capital.

No injuries were reported, but the blaze destroyed hundreds of stores and millions of dollars worth of merchandise, Afghan police and firefighters said at the scene. 


Dealers at the neighboring currency exchange, the city’s largest, said they evacuated cash, computer equipment and records from their shops as the flames approached during the night. But in the morning, the market was jammed with people haggling over thick stacks of notes as smoke billowed overhead.





Col. Mohammed Qasem, general director of the Kabul fire department, said he suspected an electrical short was to blame for the fire. 


Gas canisters used to heat the stores propelled the flames, along with the cloth and clothing sold by many of the vendors, Qasem said. “It made it very big in a short time.”


Firefighters from the Afghan defense department and NATO forces were sent to assist. But the city’s notorious traffic and the market’s narrow lanes made it difficult for responders to maneuver their vehicles, Qasem said.


Abdulrahman, who like many Afghans has only one name, squatted near a fire truck with his head in his hands  as responders aimed a hose at the blackened ruins of a building still smoldering at noon Sunday, more than 12 hours after the fire broke out.


He said the building had contained three shops that he owned and a warehouse full of glassware, crockery and kitchen utensils. 


“I lost everything,” he said.


Shirali Khan complained that police hadn't allowed him to remove the goods from his four clothing stores.


“They thought we were all robbers,” he said.  “There’s only ashes left.”


ALSO:


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Bombing kills local official, 7 other people in Pakistan


Tensions high as vote on proposed Egyptian constitution continues


Special correspondent Hashmat Baktash contributed to this report.






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