Northeast struggling to get back to normal

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NEW YORK (AP) — Two major airports reopened and the floor of the New York Stock Exchange came back to life Wednesday, while across the river in New Jersey, National Guardsmen rushed to rescue flood victims and fires still raged two days after Superstorm Sandy.


For the first time since the storm battered the Northeast, killing at least 59 people and doing billions of dollars in damage, brilliant sunshine washed over the nation's largest city — a striking sight after days of gray skies, rain and wind.


At the stock exchange, running on generator power, Mayor Michael Bloomberg gave a thumbs-up and rang the opening bell to whoops from traders on the floor. Trading resumed after the first two-day weather shutdown since the Blizzard of 1888.


Kennedy and Newark Liberty airports reopened with limited service just after 7 a.m. New York's LaGuardia Airport, which suffered far worse damage and where water covered parts of runways, remained closed.


It was clear that restoring the region to its ordinarily frenetic pace could take days — and that rebuilding the hardest-hit communities and the transportation networks that link them together could take considerably longer.


About 6.5 million homes and businesses were still without power, including 4 million in New York and New Jersey. Electricity was out as far west as Wisconsin and as far south as the Carolinas.


The scale of the challenge could be seen across the Hudson River in New Jersey, where National Guard troops arrived in the heavily flooded city of Hoboken to help evacuate thousands still stuck in their homes and deliver ready-to-eat meals. Live wires dangled in floodwaters that Mayor Dawn Zimmer said were rapidly mixing with sewage.


Thousands of people were still holed up in their brownstones, condos, and other homes in the mile-square city is across the Hudson River from New York.


And new problems arose when firefighters were unable to reach blazes rekindled by natural gas leaks in the heavily hit shore town of Mantoloking. More than a dozen homes were destroyed.


President Barack Obama planned to visit Atlantic City, N.J., which was directly in the storm's path Monday night and where part of the historic boardwalk washed away.


Gov. Chris Christie said he plans to ask the president to assign the Army Corps of Engineers to work on how to rebuild beaches and find "the best way to rebuild the beach to protect these towns."


Outages in the state's two largest cities, Newark and Jersey City, left traffic signals dark, resulting in fender-benders at intersections where police were not directing traffic. At one Jersey City supermarket, there were long lines to get bread and use an electrical outlet to charge cellphones.


Amid the despair, talk of recovery was already beginning.


"It's heartbreaking after being here 37 years," Barry Prezioso of Point Pleasant, N.J., said as he returned to his house in the beachfront community to survey the damage. "You see your home demolished like this, it's tough. But nobody got hurt and the upstairs is still livable, so we can still live upstairs and clean this out. I'm sure there's people that had worse. I feel kind of lucky."

 

As New York began its second day after the megastorm, morning rush-hour traffic was heavy as people started returning to work. There was even a sign of normalcy: commuters waiting at bus stops. School was out for a third day.


The Brooklyn-Battery Tunnel, connecting Brooklyn to Manhattan, and the Holland Tunnel, between New York and New Jersey, remained closed. But bridges into the city were open, and city buses were running, free of charge.


On the Brooklyn Bridge, closed earlier because of high winds, joggers and bikers made their way across before sunrise. One cyclist carried a flashlight. Car traffic on the bridge was busy.


Bloomberg said it could be the weekend before the subway, which suffered the worst damage in its 108-year history, is running again. High water prevented inspectors from immediately assessing damage to key equipment.


The chairman of the state agency that runs the subway, Joseph Lhota, said service might have to resume piecemeal, and experts said the cost of the repairs could be staggering.


Power company Consolidated Edison said it could also be the weekend before power is restored to Manhattan and Brooklyn, perhaps longer for other New York boroughs and the New York suburbs.


The recovery and rebuilding will take far longer.


When Christie stopped in Belmar, N.J., during a tour of the devastation, one woman wept, and 42-year-old Walter Patrickis told him, "Governor, I lost everything."


Christie, who called the shore damage "unthinkable," said a full recovery would take months, at least, and it would probably be a week or more before power is restored to everyone who lost it.


"Now we've got a big task ahead of us that we have to do together. This is the kind of thing New Jerseyans are built for," he said.


Amtrak laid out plans to resume runs in the Northeast on Wednesday, with modified service between Newark, N.J., and points south. But flooding continued to prevent service to and from New York's Penn Station. Amtrak said the water in train tunnels under the Hudson and East rivers was unprecedented.


There was no Northeast Regional service between New York and Boston and no Acela Express service for the entire length of the Northeast Corridor. No date was set for when it might resume.


In Connecticut, some residents of Fairfield returned home in kayaks and canoes to inspect widespread damage left by retreating floodwaters that kept other homeowners at bay.


"The uncertainty is the worst," said Jessica Levitt, who was told it could be a week before she can enter her house. "Even if we had damage, you just want to be able to do something. We can't even get started."


The storm caused irreparable damage to homes in East Haven, Milford and other shore towns. Still, many were grateful the storm did not deliver a bigger blow, considering the havoc wrought in New York City and New Jersey.


"I feel like we are blessed," said Bertha Weismann, whose garage was flooded in Bridgeport. "It could have been worse."


And in New York, residents of the flooded beachfront neighborhood of Breezy Point in returned home to find fire had taken everything the water had not. A huge blaze destroyed perhaps 100 homes in the close-knit community where many had stayed behind despite being told to evacuate.


John Frawley acknowledged the mistake. Frawley, who lived about five houses from the fire's edge, said he spent the night terrified "not knowing if the fire was going to jump the boulevard and come up to my house."


"I stayed up all night," he said. "The screams. The fire. It was horrifying."


There were still only hints of the economic impact of the storm.


Forecasting firm IHS Global Insight predicted it would cause $20 billion in damage and $10 billion to $30 billion in lost business. Another firm, AIR Worldwide, estimated losses up to $15 billion.


"The biggest problem is not the first few days but the coming months," said Alan Rubin, an expert in natural disaster recovery.


Some of those who lost homes and businesses to Sandy were promising to return and rebuild, but many sounded chastened by their encounter with nature's fury. They included Tom Shalvey of Warwick, R.I., whose cottage on the beach in South Kingstown was washed away by raging surf, leaving a utility pipe as the only marker of where it once sat.


"We love the beach. We had many great times here," Shalvey said. "We will be back. But it will not be on the front row."


___


Contributors to this report included Associated Press writers Angela Delli Santi in Belmar, N.J.; Geoff Mulvihill and Larry Rosenthal in Trenton, N.J.; Katie Zezima in Atlantic City, N.J.; Samantha Henry in Jersey City, N.J.; Pat Eaton-Robb and Michael Melia in Hartford, Conn.; Susan Haigh in New London, Conn.; John Christoffersen in Bridgeport, Conn.; Alicia Caldwell and Martin Crutsinger in Washington; David Klepper in South Kingstown, R.I.; David B. Caruso, Colleen Long, Jennifer Peltz, Tom Hays, Larry Neumeister, Ralph Russo and Scott Mayerowitz in New York.

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Cuba’s 2nd city without power, water after Sandy

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HAVANA (AP) — Residents of Cuba‘s second-largest city of Santiago remained without power or running water Monday, four days after Hurricane Sandy made landfall as the island’s deadliest storm in seven years, ripping rooftops from homes and toppling power lines.


Across the Caribbean, the storm’s death toll rose to 69, including 52 people in Haiti, 11 in Cuba, two in the Bahamas, two in the Dominican Republic, one in Jamaica and one in Puerto Rico.





















Cuban authorities have not yet estimated the economic toll, but the Communist Party newspaper Granma reported there was “severe damage to housing, economic activity, fundamental public services and institutions of education, health and culture.”


Yolanda Tabio, a native of Santiago, said she had never seen anything like it in all her 64 years: Broken hotel and shop windows, trees blown over onto houses, people picking through piles of debris for a scrap of anything to cover their homes. On Sunday, she sought solace in faith.


“The Mass was packed. Everyone crying,” said Tabio, whose house had no electricity, intermittent phone service and only murky water coming out of the tap on Monday. “I think it will take five to ten years to recover. … But we’re alive.”


Sandy came onshore early Thursday just west of Santiago, a city of about 500,000 people in agricultural southeastern Cuba. It is the island’s deadliest storm since 2005′s Hurricane Dennis, a category 5 monster that killed 16 people and did $ 2.4 billion in damage. More than 130,000 homes were damaged by Sandy, including 15,400 that were destroyed, Granma said.


“It really shocked me to see all that has been destroyed and to know that for many people, it’s the effort of a whole lifetime,” said Maria Caridad Lopez, a media relations officer at the Roman Catholic Archdiocese in Santiago. “And it disappears in just three hours.”


Lopez said several churches in the area collapsed and nearly all suffered at least minor damage. That included the Santiago cathedral as well as one of the holiest sites in Cuba, the Sanctuary of the Virgin del Cobre. Sandy’s winds blew out its stained glass windows and damaged its massive doors.


“It’s indescribable,” said Berta Serguera, an 82-year-old retiree whose home withstood the tempest but whose patio and garden did not. “The trees have been shredded as if with a saw. My mango only has a few branches left, and they look like they were shaved.”


On Monday, sound trucks cruised the streets urging people to boil drinking water to prevent infectious disease. Soldiers worked to remove rubble and downed trees from the streets. Authorities set up radios and TVs in public spaces to keep people up to date on relief efforts, distributed chlorine to sterilize water and prioritized electrical service to strategic uses such as hospitals and bakeries.


Enrique Berdion, a 45-year-old doctor who lives in central Santiago, said his small apartment building did not suffer major damage but he had been without electricity, water or gas for days.


“This was something I’ve never seen, something extremely intense, that left Santiago destroyed. Most homes have no roofs. The winds razed the parks, toppled all the trees,” Berdion said by phone. “I think it will take years to recover.”


Raul Castro, who toured Cuba’s hardest-hit regions on Sunday, warned of a long road to recovery.


Granma said the president called on the country to urgently implement “temporary solutions,” and “undoubtedly the definitive solution will take years of work.”


Venezuela sent nearly 650 of tons of aid, including nonperishable food, potable water and heavy machinery both to Cuba and to nearby Haiti, which was not directly in the storm’s path but suffered flash floods across much of the country’s south.


Across the Caribbean, work crews were repairing downed power lines and cracked water pipes and making their way into rural communities marooned by impassable roads. The images were similar from eastern Jamaica to the northern Bahamas: Trees ripped from the ground, buildings swamped by floodwaters and houses missing roofs.


Fixing soggy homes may be a much quicker task than repairing the financial damage, and island governments were still assessing Sandy’s economic impact on farms, housing and infrastructure.


In tourism-dependent countries like Jamaica and the Bahamas, officials said popular resorts sustained only superficial damage, mostly to landscaping.


Haiti, where even minor storms can send water gushing down hills denuded of trees, listed a death toll of 52 as of Monday and officials said it could still rise. Prime Minister Laurent Lamothe has described the storm as a “disaster of major proportions.”


In Jamaica, where Sandy made landfall first on Wednesday as a Category 1 hurricane, people coped with lingering water and power outages with mostly good humor.


“Well, we mostly made it out all right. I thought it was going to be rougher, like it turned out for other places,” laborer Reginald Miller said as he waited for a minibus at a sunbaked Kingston intersection.


In parts of the Bahamas, the ocean surged into coastal buildings and deposited up to six feet of seawater. Sandy was blamed for two deaths on the archipelago off Florida’s east coast, including a British bank executive who fell off his roof while trying to fix a window shutter and an elderly man found dead beneath overturned furniture in his flooded, low-lying home.


___


Associated Press writers Anne-Marie Garcia in Havana, David McFadden in Kingston, Jamaica, and Jeff Todd in Nassau, Bahamas, contributed to this report.


___


Peter Orsi is on Twitter: www.twitter.com/Peter_Orsi


Latin America News Headlines – Yahoo! News



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Nokia says shipping new Lumia smartphones this week

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‘Up All Night’ takes a page from ‘Happy Days’

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NEW YORK (TheWrap.com) – “Up All Night” is switching from a single camera to multicam format, making a transition formerly made by the classic sitcom “Happy Days.”


The series, which stars Christina Applegate and Will Arnett as harried new parents and Maya Rudolph as Applegate‘s self-absorbed boss, will shut down for three months after taping its final single-camera episode next week. It will use that time to convert its stage and set for the show to be recorded in front of a live audience with multiple cameras.





















It will go back into production in February on five multi-camera episodes, bringing the total number of episodes for this season to 16.


All of the season’s 11 remaining single-camera episodes will air by December, and the multicam episodes will return in April or May. The show has earned only passable ratings since debuting last season.


There was no word on what will fill the show’s 8:30 Thursday timeslot in the interim, but NBC has “Community” in its bullpen. The planned Friday debut for “Community” was delayed earlier this month.


The series’ creator, Emily Spivey, is a veteran of the three-camera format thanks to her work on “Saturday Night Live.” Showrunner Tucker Cawley worked previously on the multicam “Everybody Loves Raymond.” NBC entertainment chairman Bob Greenblatt said the network and executive producer Lorne Michaels agreed the format change would “infuse the show with more energy.”


“We know what the multi-camera audience does for the live episodes of ’30 Rock,’ plus after seeing both Maya and Christina do SNL within the past few months, we knew we had the kind of performers – Will Arnett included – who love the reaction from a live audience,” Greenblatt said. “We think we can make a seamless tradition to the new format. Also, we’re committed to the multi-camera form and this will give us another show to consider for next season in this new format.”


NBC pointed to “Happy Days” as a precedent for the shift. The show’s first two seasons were filmed using a single-camera setup and laugh track, but one episode of Season 2 (“Fonzie Gets Married”) was filmed in front of a studio audience with three cameras as a test run.


From the third season on, the show was shot with three cameras. Tom Bosley or another cast member would usually inform viewers that it was filmed in front of a live audience.


TV News Headlines – Yahoo! News



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NYU Medical Center Evacuated

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Paramedics and other medical workers began to evacuate patients from New York University Langone Medical Center due to a power outage caused by Tropical Storm Sandy, followed by a failure of backup generators at the hospital, New York City officials said Monday night.


About 200 patients, roughly 45 of whom are critical care patients, were moved out of NYU via private ambulance with the assistance of the New York Fire Department, city officials said. ABC News’ Chris Murphey reported a long line of ambulances outside of NYU Langone waiting to transport patients to other hospitals in the city.





















The hospital had a total of 800 patients two days ago, some patients were discharged before tonight’s evacuation, which was described by emergency management officials as “a total evacuation.”




NYU Medical Center Forced to Evacuate Over 200 Patients Watch Video



According to ABC’s Josh Haskell, 24 ambulances lined the street, waiting to be waved in to pick up patients from NYU Langone Medical Center. “Every 4 minutes a patient comes out and an empty ambulance pulls up. The lobby of the Medical Center is full of hospital personnel, family members, and patients,” Haskell reports.


The patients were moved to a number of area hospitals and according to officials at NYU, the receiving hospitals would notify family members.


Sloan Kettering Hospital spokesman Chris Hickey confirmed to ABC News’ Gitika Ahuja that it is receiving 26 adult patients from NYU, at their request. Hickey said she didn’t know whether they had been admitted yet or what their conditions were.


NewYork-Presbyterian Hospital spokesman Wade Bryan Dotson said it is also accepting patients from NYU at both campuses, Columbia and Weill Cornell.


Meanwhile, ABC News affiliate WABC captured footage of patients being evacuated; among the first patients brought out of the hospital on gurneys was a mother and her newborn child.


On Monday morning, NYU Langone Medical Center had issued a press release that indicated the hospital’s emergency preparedness plan had been activated and that there were “no plans to evacuate” at the time.


Shortly after the reports of an evacuation at NYU Langone, city officials reported that a second major New York City hospital, Bellevue Hospital, was about to lose backup power due to a generator failure.


Requests for more information from NYU Langone Medical Center spokespeople were not immediately returned.


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'One for the record books': Sandy leaves death and destruction in wake

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NEW YORK (AP) — Millions of people from Maine to the Carolinas awoke Tuesday without power, and an eerily quiet New York City was all but closed off by car, train and air as superstorm Sandy steamed inland, still delivering punishing wind and rain.

The full extent of the damage in New Jersey, where the storm roared ashore Monday night with hurricane force, was unclear. Police and fire officials, some with their own departments flooded, fanned out to rescue hundreds.

"We are in the midst of urban search and rescue. Our teams are moving as fast as they can," Gov. Chris Christie said. "The devastation on the Jersey Shore is some of the worst we've ever seen. The cost of the storm is incalculable at this point."

The death toll from Sandy in the U.S. climbed to 20, including seven in New York, four in Pennsylvania and three in New Jersey, with many of the victims killed by falling trees. Sandy also killed 69 people in the Caribbean before making its way up the Eastern Seaboard.

At least 7.4 million people across the East were without electricity. Airlines canceled more than 12,000 flights.

Lower Manhattan, which includes Wall Street, was among the hardest-hit areas after the storm sent a nearly 14-foot surge of seawater, a record, coursing over its seawalls and highways and into low-lying streets.

Water cascaded into the gaping, unfinished construction pit at the World Trade Center, and the New York Stock Exchange was closed for a second day, the first time that has happened because of weather in more than a century.

A huge fire destroyed as many as 100 houses in a flooded beachfront neighborhood in Queens on Tuesday, forcing firefighters to undertake daring rescues. Three people were injured.

A downtown hospital, New York University's Tisch, evacuated 200 patients after its backup generator failed. About 20 babies from the neonatal intensive care unit were carried down staircases and on battery-powered respirators.

And a construction crane that collapsed in the high winds on Monday still dangled precariously 74 floors above the streets of midtown Manhattan. And on Staten Island, a tanker ship wound up beached on the shore.

With water standing in two major commuter tunnels and seven subway tunnels under the East River, and Mayor Michael Bloomberg said it was unclear when the nation's largest transit system would be rolling again. It shut down Sunday night ahead of the storm.

Joseph Lhota, chairman of the regional Metropolitan Transportation Authority, said the damage was the worst in the 108-year history of the New York subway.

The saltwater surge inundated subway signals, switches and electrified third rails and covered tracks with sludge. Workers began pumping the water out and will ultimately have to walk all of the hundreds of miles of track to inspect it.

Millions of more fortunate New Yorkers surveyed damage as dawn broke, their city brought to an extraordinary standstill.

"Oh, Jesus. Oh, no," Faye Schwartz said she looked over damage in neighborhood in Brooklyn, where cars were scattered like leaves.

Reggie Thomas, a maintenance supervisor at a prison near the overflowing Hudson River, emerged from an overnight shift there, a toothbrush in his front pocket, to find his Honda with its windows down and a foot of water inside. The windows automatically go down when the car is submerged to free drivers.

"It's totaled," Thomas said with a shrug. "You would have needed a boat last night."

Besides the subway and the stock exchange, most major tunnels and bridges in New York were closed, as were schools, Broadway theaters and the metropolitan area's three main airports, LaGuardia, Kennedy and Newark.

"This will be one for the record books," said John Miksad, senior vice president for electric operations at Consolidated Edison, which had more than 670,000 customers without power in and around New York City.

In New Jersey, a huge swell of water swept over the small town of Moonachie, near the Hackensack River, and authorities struggled to rescue about 800 people, some of them living in a trailer park.

And in neighboring Little Ferry, water suddenly started gushing out of storm drains overnight, submerging a road under 4 feet of water and swamping houses.

Police and fire officials used boats and trucks to reach the stranded.

"I looked out and the next thing you know, the water just came up through the grates. It came up so quickly you couldn't do anything about it. If you wanted to move your car to higher ground you didn't have enough time," said Little Ferry resident Leo Quigley, who with his wife was taken to higher ground by boat.

Jersey City was closed to cars because traffic lights were out, and Hoboken, just over the Hudson River from Manhattan, dealt with major flooding. In Atlantic City, most of the world-famous boardwalk was intact, but pieces washed away Monday night.

Remnants of the hurricane were forecast to head across Pennsylvania before taking another sharp turn into western New York by Wednesday morning. Although weakening as it goes, the storm will continue to bring heavy rain and flooding, said Daniel Brown of the National Hurricane Center in Miami.

As Hurricane Sandy closed in on the Northeast, it converged with a cold-weather system that turned it into a monstrous hybrid of rain, high wind — and even snow in West Virginia and other mountainous areas inland.

In a measure of how big the storm was, high winds spinning off the edge of Sandy clobbered the Cleveland area early Tuesday, uprooting trees, cutting power to hundreds of thousands, closing schools and flooding major roads along Lake Erie.

Hundreds of miles from the storm's center, gusts topping 60 mph prompted officials to close the port of Portland, Maine, and scared away several cruise ships.

Just before it made landfall at 8 p.m. near Atlantic City, N.J., forecasters stripped Sandy of hurricane status, but the distinction was purely technical, based on its shape and internal temperature.

While the hurricane's 80 mph winds registered as only a Category 1 on a scale of five, it packed the lowest barometric pressure on record in the Northeast, giving it terrific energy to push water inland.

President Barack Obama declared a major disaster in the city and Long Island. The storm brought the presidential campaign to a halt with a week to go before Election Day.

In New York, the construction crane atop a 1,000-foot, $1.5 billion luxury high-rise in midtown Manhattan dangled for a second day while authorities tried to figure out how to secure it. Thousands were ordered to leave nearby buildings as a precaution, including 900 guests at the ultramodern Le Parker Meridien hotel.

Alice Goldberg, 15, a tourist from Paris, was watching television in the hotel — whose slogan is "Uptown, Not Uptight" — when a voice came over the loudspeaker and told everyone to leave.

"They said to take only what we needed, and leave the rest, because we'll come back in two or three days," she said as she and hundreds of others gathered in the luggage-strewn marble lobby. "I hope so."

An explosion Monday night at a substation for Consolidated Edison, the main utility service New York City, knocked out power to about 310,000 customers in Manhattan.

"It sounded like the Fourth of July," Stephen Weisbrot said from his 10th-floor apartment.

In Baltimore, fire officials said four unoccupied rowhouses collapsed in the storm, sending debris into the street but causing no injuries. A blizzard in western Maryland caused a pileup of tractor-trailers that blocked part of Interstate 68 on slippery Big Savage Mountain.

"It's like a long-tailed cat in a room full of rocking chairs up here," said Bill Wiltson, a Maryland State Police dispatcher.

___

Hays reported from New York and Breed reported from Raleigh, N.C.; AP Science Writer Seth Borenstein contributed to this report from Washington. Associated Press writers David Dishneau in Delaware City, Del., Katie Zezima in Atlantic City, Emery P. Dalesio in Elizabeth City, N.C., and Erika Niedowski in Cranston, R.I., also contributed.

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In San Francisco, tech investor leads a political makeover

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SAN FRANCISCO (Reuters) - One morning in April, Ron Conway, the billionaire technology investor, sat in a conference room on the second floor of San Francisco's City Hall with about 50 representatives from the city's business community.


On the agenda was a sweeping proposal by Mayor Ed Lee to reform the city's payroll tax, a plan that would favor companies with many employees but little revenue — tech start-ups, namely — while shifting the burden to the real estate and financial industries.


The head of the San Francisco Chamber of Commerce was arguing against the proposal when Conway abruptly cut him off.


"The tech industry is producing all the jobs in this city," Conway snapped, according to four people present, his voice rising as he insisted that old-line businesses "need to get on board."


In the end, they did get on board — and San Francisco voters on November 6 will decide whether to approve the change in the tax code.


Conway's success with the tax initiative demonstrates the profound transformation playing out in San Francisco's business corridors and its halls of power. As start-ups blossom, attracting a wave of entrepreneurs and investment dollars, the tech industry is wielding newfound clout in local politics — largely thanks to Conway, its brash, silver-haired champion.


The shift, local political experts say, harks back to the turn of the last century, when financial institutions like the Bank of Italy — forebear to present-day Bank of America — gradually eroded the railroad barons' grip over California politics.


Now the tech industry, led by Conway, is beginning to overshadow long-dominant local business lobbies, said Chris Lehane, a political consultant and former adviser in the Clinton White House.


"When you have a new business entity that really hasn't existed in the past and becomes a real player in local politics, that changes the balance a bit," said Lehane, who is based in San Francisco. "People like Ron Conway, he's an angel investor in companies but also an angel supporter of politicians he cares about."


Not everyone in this famously liberal city is enthused about the new tech boom, which is driving up rents and threatening to price out all but the wealthy.


"As someone who lived through the tech boom in the '90s and watched countless friends and community members get pushed out of their homes, only for the bubble to disintegrate, this is painful to watch," said Gabriel Haaland, political director for the SEIU Local 1021, the largest union in the city. "Those times are here again."


Last month, when San Francisco Magazine published an article bemoaning tech-driven gentrification, traffic on the magazine's website broke all records.


"It touched on an issue that people have been thinking about for a while," said Jon Steinberg, the magazine's editor.


Conway and Lee make no apologies.


"Tech added 13,000 out of the 25,000 new jobs we created the last couple years, which helped us bring the unemployment rate to the third-lowest in the state," Lee, a Democrat, said in an interview. "We have to work with the new jobs creators, and that's what I believe the public wants me to do."


Conway, who made his name in the 1990s by betting on small, early-stage companies and scoring a huge win with Google, says a key goal of a new civic organization he has started, San Francisco Citizens Initiative for Technology & Innovation, is to provide service jobs in tech for long-term residents and the unemployed.


"It would be great if we could create a few hundred jobs in the $50,000 to $80,000 income bracket," said Conway. "We're here to improve the living conditions for all of San Francisco. That's the responsibility tech wants to take."


ODD COUPLE


Conway and Lee have an exceptionally close relationship, one that has captivated the city's political set even while attracting accusations of favoritism from the mayor's rivals.


The two make an odd couple. Lee was a publicity-shy city bureaucrat and civil rights lawyer for decades before being named caretaker mayor of this Democratic bastion in 2011 after his predecessor was elected lieutenant governor. Conway, until recently a registered Republican, counts Tiger Woods and Henry Kissinger among his investors and considers a start-up tour with Ashton Kutcher in tow just another day's work.


In a city that faces chronic budget deficits even as it enjoys a comparatively strong economy, the relationship is symbiotic. Conway taps his access to Lee to promote his companies, from Twitter to Zynga to Airbnb; Lee persuades Conway to rally tech leaders to help fund the police, the schools, the parks.


Their alliance began only last year. As interim mayor, Lee impressed Conway when he pushed through a tax exemption for Twitter, which had considered moving out of the city to avoid the tax bill that would have resulted from an initial public offering. San Francisco imposes a 1.5 percent payroll tax on local companies, a levy that applies to any gains in an IPO.


When Lee ran for a full four-year term several months later, Conway formed an independent political action committee on his behalf. He rustled up almost $700,000 from the likes of entrepreneur Sean Parker; Zynga CEO Mark Pincus; Salesforce CEO Marc Benioff; venture capitalists John Doerr and Tom Byers; and Credit Suisse banker Bill Brady.


He also enlisted Portal A, a video production outfit consisting of three twentysomething hitmakers, to create a YouTube video that featured rapper MC Hammer, Yahoo CEO Marissa Mayer and San Francisco Giants pitcher Brian Wilson dancing on Conway's rooftop. The clip went viral and effectively drowned out ads from Lee's rivals.


A year later, Conway rated the mayor's performance a "9.5 out of 10."


"I have a tremendous respect for Mayor Lee," he said. "He listens to people. He builds consensus, and that's an improvement from the past."


Conway said he and Lee are "too busy with our day jobs" to socialize frequently. Neither likes to publicly discuss their relationship. But when the mayor turned 60 in May, Lee and his family sat down for a three-hour private dinner with Conway and his wife, Gayle, at an Italian restaurant in North Beach, according to the San Francisco Chronicle's gossip columnists.


For Conway — whose calls to the mayor's office are considered the highest priority, City Hall insiders say — no issue facing his portfolio companies is too insignificant for him to get involved. In one instance this year, after social media company Pinterest moved to San Francisco, Conway pressed officials to repaint curbs to allow employee parking near the start-up's offices, according to two people with knowledge of the matter. The city refused; Conway denied that the incident occurred.


While some cities have cracked down on services like Airbnb, which lets residents rent out spare bedrooms and can run afoul of local lodging ordinances, Lee has taken the opposite tack. This year he formed a policy-making group to consider how to regulate and foster such companies, which are part of what's known in Silicon Valley as the "sharing economy."


The mayor has also urged Conway to help city initiatives. Conway recently contributed $100,000 toward a campaign to approve bonds to restore the city's parks, and gave $25,000 to a charity founded by Lee that funds impoverished public schools. When a group of software developers tried recently to create an app that would improve public bus performance but lacked funds for a pilot program, SF Citi stepped in and cut a check.


Lee said he hoped Conway would fill a void left by recently deceased philanthropists such as Gap Inc founder Don Fisher, real estate mogul Walter Shorenstein and private equity investor Warren Hellman.


"The tech guys like Conway usually want to meet presidents and such. You never see them play so deep in local government," said one Democratic fundraiser. "It's unusual."


But the tech world says the headlong plunge into local politics is classic Conway.


"When Ron is passionate about an issue or a company or a person, it's never a secret," said Twitter CEO Dick Costolo. "He's passionate about San Francisco right now, and it's exhibiting itself in the way he helps companies in the city, the way he helps the city. It's fantastic to see."


CHANGING TAX POLICY


Conway says his top priority is passage of the payroll tax reform initiative on November 6.


The measure would tax local businesses based on their gross receipts instead of the size of their payroll, which benefits low-revenue, high-headcount companies like startups. Financial, insurance and real estate companies would see their local taxes rise by 30 percent, while taxes will remain flat for most scientific and technical companies.


Crucially, the measure would also mean that proceeds from an IPO would not be subject to taxes.


Landlords, and to a lesser extent financial services companies, conceded that they had lost their first political fight with the tech industry, but took the long view.


"We knew we were going to be socked in a big way, and we worked early and long and hard with the city for a rate that was fair," said Ken Cleaveland of the Building Owners and Managers Association. "In the end it wasn't in our best interest to fight our tenants."


(Reporting by Gerry Shih; Editing by Jonathan Weber, Douglas Royalty and Dale Hudson)


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European fashion buyers look to Nigeria

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LAGOS, Nigeria (AP) — A model struts the runway wearing a flowing newspaper print gown in this African megacity where international high-end fashion buyers are looking beyond the country’s bleak headlines to uncover the next new thing.


There have been steady efforts to turn Lagos, a city with a fearsome reputation, into a fashion destination. They reached new heights at the MTN Lagos Fashion & Design Week that ran from Oct. 24 to 27 and drew European high-fashion brands such as the United Kingdom’s Selfridges & Co. and Munich-based MyTheresa.com to Nigeria for the first time.





















Ituen Basi’s newspaper inspired Spring/Summer 2013 collection was among 39 collections spotlighted at the city’s latest major fashion week. The Nigerian’s collection evoked fun and glamour through its use of print and color — characteristics which have come to define the vibrant local fashion scene.


With local brands seeking wider platforms and international retailers hungry for novelty, designers and buyers see opportunities for collaboration.


“There’s something about the fresh, the unknown, the possibility of seeing a new brand springing forth into the limelight. … These are becoming interesting to people outside Nigeria,” said Omoyemi Akerele, the fashion week’s founder and creative director.


An encouraging response to African-inspired designs by top Western labels gives buyers confidence that designs straight from the continent will also sell.


“Over the past few seasons, there’s been a strong trend for print,” said Bruno Barba, the brand public relations manager at Selfridges. “If you look at the collection of Burberry inspired by Africa last year; there was also Vivienne Westwood, Paul Smith. … They’ve made that inspiration quite mainstream now. So, for us, it was interesting to take that trend and take it from its roots in Africa.”


Online retailer MyTheresa.com, which ships top designers’ clothes including Miu Miu, Givenchy, Lanvin and Isabel Meron to clients in 120 different countries, is also looking for products in Nigeria that will sell well. The company hopes that will set it apart from the competition in a fast-paced industry.


“For me, Nigeria represents a fun individualism,” the company’s buying director Justin O’Shea said. He also said that MyTheresa.com was looking to work closely with designers and adapt products for their clientele if needed.


Previously, several Nigerian designers have helped put the West African nation on the global fashion map.


Deola Sagoe has gained recognition from U.S. Vogue editor Andre Leon Talley and Oprah Winfrey. London-based Duro Olowu is considered one of Michelle Obama’s favorite designers. Maki Oh has dressed American singer Solange Knowles and Hollywood actress Leelee Sobieski from her Lagos workshop. Jewel By Lisa, who has also dressed celebrities, designed limited edition BlackBerry mobile phone skins and jeweled cases for Canadian manufacturer Research In Motion Ltd.


While looking to Nigeria could bring much-needed novelty to clothes targeted to Western audiences, it could also endear a Nigerian clientele. Though the majority of the nation lives on less than $ 2 a day, the nation’s wealthy elite — including upstart business owners, oil industry executives and corrupt politicians — have a growing appetite for top-shelf brands. Luxury goods stores are increasingly opening in a country where seemingly gratuitous displays of wealth are the norm.


“Nigerians are part of our Top 10 highest-spending foreign customers,” Barba said. “It felt right for us to try and find a response that would appeal to them, excite them and be over and above what they already buy, almost as a recognition that they’re an important part of our consumer base.”


___


Online:


Lagos Fashion & Design Week: www.lagosfashionanddesignweek.com


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Analysis: U.S. foreign bribery penalties for drugmakers may lack bite

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NEW YORK (Reuters) – Global drugmakers are paying tens of millions of dollars to settle U.S. allegations that they bribed their way across emerging markets, but harsher penalties may be needed to deter the practice in untapped regions where billions are at stake.


Federal authorities have cast a wide net to weed out suspected gift-giving and kickbacks to foreign doctors and government officials to gain a foothold in burgeoning new markets in Asia, Eastern Europe and Latin America.





















At least eight of the world’s top 10 drugmakers, including Bristol-Myers Squibb Co, Pfizer Inc and Johnson &, have disclosed U.S. probes under the 1977 Foreign Corrupt Practices Act (FCPA).


Pfizer agreed to pay $ 60 million this year to settle FCPA charges and J&J reached a $ 70 million settlement last year. Pfizer is on track to record $ 10 billion in sales from emerging markets this year, while J&J said Brazil, Russia, India and China accounted for just under 10 percent of the $ 65 billion in sales it reported last year.


With so much at stake outside of established markets in the United States and Europe, some experts say fines like these are hardly a deterrent.


“The $ 60 million fine for Pfizer to a lay person sounds like quite a bit of money, but in perspective it took less than two days of Lipitor sales during its peak. It’s really just chump change for them,” said Michael Leibfried, a senior analyst with market research consulting firm GlobalData. The cholesterol pill at its height was a $ 13 billion a year cash cow for Pfizer.


Kara Brockmeyer, chief of FCPA investigations within the Securities and Exchange Commission’s enforcement division, said the SEC and Department of Justice make a considerable effort to ensure penalties are appropriate and a deterrent. And there has yet to be a repeat FCPA prosecution.


The SEC relies on legal provisions that call for disgorgement of profits based on ill-gotten gains plus penalties. Companies that report violations and cooperate with authorities are often rewarded with penalty reductions.


“I would hate to think the companies view enforcement actions as the cost of doing business,” Brockmeyer told Reuters. “If we find that out, it will certainly increase the size of the penalty,” she said.


The law firm Shearman & Sterling, which puts out a semi-annual report tracking FCPA enforcement, found that penalties across all industries have averaged less than $ 20 million.


In 2009 Danish insulin maker Novo Nordisk paid $ 9 million for FCPA violations, while medical device maker Smith & Nephew this year agreed to $ 22 million in fines and profit disgorgement. The largest FCPA penalty on record was $ 800 million paid in 2008 by Germany-based Siemens.


The industry’s FCPA payments pale in comparison to billion-dollar settlements over allegations drugmakers promoted medications for unapproved uses in the United States. These penalties often involve how much federal Medicare and Medicaid programs spent on the so-called off-label prescriptions.


“I’m not terribly surprised that dollar settlements (for FCPA violations) are strikingly lower because the government isn’t directly being harmed,” said Boston University law professor Kevin Outterson.


PLAYING THE RIGHT WAY


Pfizer’s settlement covered infractions dating back to 2004, including some attributed to drugmaker Wyeth, which it bought in 2009. The company lightened its penalty by voluntarily providing information about kickbacks and bribes in Bulgaria, Croatia, Kazakhstan, Russia, China, the Czech Republic, Italy, Serbia, Indonesia, Pakistan and Saudi Arabia.


“Pfizer subsidiaries in several countries had bribery so entwined in their sales culture that they offered points and bonus programs to improperly reward foreign officials who proved to be their best customers,” Brockmeyer said in a statement at the time the settlement was announced.


Pfizer executives say their emerging market operations will not repeat those practices. It has introduced an anti-corruption audit program, closer monitoring of relationships with non-U.S. healthcare providers and government officials, a mandatory global training program for appropriate employees and enhanced due diligence to make sure buyout targets follow the rules.


J&J said it has enacted similar anti-corruption initiatives.


“We’re not out there to play the game that’s been played before,” said Adele Gulfo, head of Latin America for Pfizer’s emerging markets unit. “We’re either going to win by playing the right way or we’re going to find another place to go.”


Asked if there is still an expectation of payoffs for business in some Latin American circles, Gulfo said: “I’m sure it exists. I’d be naive to say it doesn’t exist.”


Latin American business practices were cited in August as the reason No. 1 generic drugmaker Teva Pharmaceutical Industries was targeted for an FCPA investigation.


J&J also voluntarily reported violations by foreign subsidiaries going back to 2007. Its settlement covered allegations of bribes and kickbacks to win business in Greece, Iraq, Poland and Romania.


DOJ spokeswoman Rebekah Carmichael said the penalties have already had a ripple effect in the industry, forcing companies to “make real, lasting changes to their operations that have altered the way they engage with foreign countries.”


BEYOND THE PENALTIES


The U.S. government sees vast potential for abuse in the drug industry’s business model, said Andy Spalding, assistant law professor at the University of Richmond and a senior editor for The FCPA Blog, which closely follows such cases.


“So much of their research and development, their marketing, their pricing and distribution and sales are occurring in foreign countries,” Spalding said. “And often they are occurring through a big chain of subsidiaries and other operations that make compliance challenging.”


Legal experts noted that any company subject to an FCPA probe is already spending a great deal to investigate the charges internally, and that the final cost can run into hundreds of millions of dollars.


“Overall expense vastly dwarfs the penalty,” said Philip Urofsky, head of Shearman & Sterling’s FCPA practice who previously worked on FCPA cases for the DOJ.


Drugmakers can have a tough time tracking kickbacks to local officials. Such payments, while widespread, are typically smaller than in other industries.


“In pharma there are thousands of daily interactions with government officials. There are always going to be people that step over the line,” Urofsky said.


Since FCPA investigations typically take years to come to a head, Outterson said the jury is still out on whether the current strategy is working.


“Whether they’re taking aggressive enough action to end it is a question we’ll know in five more years … when we see the cases refer to 2012.”


(Editing by Michele Gershberg and David Gregorio)


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Northeast battens down the hatches as Sandy approaches

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NEW YORK (AP) — A fast-strengthening Hurricane Sandy churned north Monday, raking ghost-town cities along the Northeast corridor with rain and wind gusts. Subways and schools were closed across the region of 50 million people, the floor of the New York Stock Exchange was deserted, and thousands fled inland.

Forecasters expected the monster hurricane to make a westward lurch and aim for New Jersey, blowing ashore Monday night and combining with two other weather systems to create an epic superstorm.

Its projected path put New York City and Long Island in the danger zone for a huge surge of seawater made more fearsome by high tides and a full moon.

"This is the worst-case scenario," said Louis Uccellini, environmental prediction chief for the National Oceanic and Atmospheric Administration.

By late morning, the storm's top winds had strengthened to 90 mph. It was about 200 miles southeast of Atlantic City, N.J., where the emptied-out streets were mostly under water and where an old section of the historic boardwalk broke up and washed away.

Authorities moved to close the Holland Tunnel, which connects New York and New Jersey, and a tunnel between Manhattan and Brooklyn. Street grates above the New York subway were boarded up, but officials worried that seawater would seep in and damage the switches.

Because the storm is so big, with tropical storm-force winds extending almost 500 miles from its center, it could upend daily life for big cities and small towns alike across the Northeast — including Washington, Baltimore, Philadelphia, New York and Boston — and as far west as the Great Lakes. Up to 3 feet of snow was forecast for the West Virginia mountains.

Millions of people in the storm's path stayed home from work. Subways, buses and trains shut down, and more than 7,000 flights in and out of the East were canceled, snarling travel around the globe. Hundreds of thousands of people were under orders to flee the coast, including 375,000 in lower Manhattan and other parts of New York City, but authorities warned that the time to get out was short or already past.

"I think this one's going to do us in," said Mark Palazzolo, who boarded up his bait-and-tackle shop in Point Pleasant Beach, N.J., with the same wood he used in past storms, crossing out the names of Hurricanes Isaac and Irene and spray-painting "Sandy" next to them.

"I got a call from a friend of mine from Florida last night who said, 'Mark, get out! If it's not the storm, it'll be the aftermath. People are going to be fighting in the streets over gasoline and food.'"

President Barack Obama declared emergencies in Massachusetts, Connecticut, Rhode Island, New York, New Jersey and Pennsylvania, authorizing federal relief work to begin well ahead of time. He promised the government would "respond big and respond fast" after the storm hits.

"My message to the governors as well as to the mayors is anything they need, we will be there, and we will cut through red tape," Obama said. "We are not going to get bogged down with a lot of rules."

Sandy, a Category 1 hurricane, was blamed for 65 deaths in the Caribbean before it began traveling northward, parallel to the Eastern Seaboard. As of 11 a.m., it was moving at 18 mph, with hurricane-force winds extending an extraordinary 175 miles from its center.

About 90 miles off Cape Hatteras, N.C., the Coast Guard rescued 14 crew members by helicopter from a replica of the 18th-century tall ship made famous in the movie "Mutiny on the Bounty." The Coast Guard searched for two other crew members.

The rescued had donned survival suits and life jackets and boarded two lifeboats after the ship began taking on water. They were plucked from 18-foot seas just before sunrise.

Maryland Gov. Martin O'Malley said a fishing pier in the beach resort of Ocean City, not far from a popular boardwalk and amusement park, was "half-gone." The area had been ordered evacuated on Sunday.

Water was already a foot deep on the streets of Lindenhurst, N.Y., along the southern edge of Long Island, and the canals around the island's Great South Bay were bulging two hours before high tide. Gale-force winds blew overnight over coastal North Carolina, southeastern Virginia, the Delmarva Peninsula and coastal New Jersey.

Forecasters warned that New York City and Long Island could be on the dangerous northeastern edge of the tempest and bear the worst of the storm surge — a wall of seawater up to 11 feet high that could swamp lower Manhattan, flood subway tunnels and cripple the network of electrical and communications lines that are vital to the nation's financial center.

The major American stock exchanges closed for the day, the first unplanned shutdown since the Sept. 11 attacks in 2001. The floor of the NYSE, typically bustling with traders on a Monday morning, fell within the city's mandatory evacuation zone. The United Nations canceled all meetings at its New York headquarters.

New York called off school for the city's 1.1 million students, and the more than 5 million people who depend on its transit network every day were left without a way to get around. Most planned to stay inside anyway.

"If you don't evacuate, you are not only endangering your life, you are also endangering the lives of the first responders who are going in to rescue you," Mayor Michael Bloomberg warned. "This is a serious and dangerous storm."

New Jersey Gov. Chris Christie was typically blunt: "Don't be stupid. Get out."

The storm bore down barely a week before the presidential election. Wary of being seen as putting political pursuits ahead of public safety, Obama and Republican nominee Mitt Romney reshuffled their campaign plans.

In Virginia, one of the most competitive states, election officials eased absentee voting requirements for those affected by the storm. Three other closely contested states, New Hampshire, North Carolina and Ohio, were within Sandy's reach. Early voting was canceled Monday in Maryland and Washington, D.C., both reliably Democratic.

After hooking inland, Sandy was expected to collide with a wintry storm moving in from the west and cold air streaming down from the Arctic. Forecasters said the combination could bring close to a foot of rain in places, a potentially lethal storm surge of 4 to 11 feet across much of the region, and punishing winds that could cause widespread power outages that last for days.

Craig Fugate, chief of the Federal Emergency Management Agency, said FEMA teams were deployed from North Carolina to Maine and as far inland as West Virginia, bringing generators and basic supplies that will be needed in the storm's aftermath.

"I have not been around long enough to see a hurricane forecast with a snow advisory in it," Fugate told NBC's "Today" show.

Pennsylvania's largest utilities brought in hundreds of line-repair and tree-trimming crews. In New Jersey, where utilities were widely criticized last year for slow responses after the remnants of storms Irene and Lee, authorities promised a better performance. Hundreds of homes and businesses were already without electricity early Monday.

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Breed reported from Raleigh, N.C.; Contributing to this report were AP Science Writer Seth Borenstein in Washington; Katie Zezima in Atlantic City, N.J.; David Porter in Pompton Lakes, N.J.; Wayne Parry in Point Pleasant Beach, N.J.; and David Dishneau in Delaware.

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