Partnership Offers Support for Media Ventures


Can the nascent entrepreneurial ideas bouncing around Silicon Valley help reinvent public media?


Matter Ventures, a start-up accelerator that will provide four months of financial and logistical support for budding media entrepreneurs, will be unveiled Monday by its partners: KQED, a public television and radio station operator; the John S. and James L. Knight Foundation; and the Public Radio Exchange, known as PRX.


KQED, based in San Francisco, and the Knight Foundation are each investing $1.25 million in the initial $2.5 million fund and will have an equity stake in any projects that become viable businesses. PRX, based in Cambridge, Mass., is contributing strategic and management support. The project was announced a year ago as a PRX endeavor to be financed by Knight, before KQED became an investor.


While the partners would love to find the next Google, KQED, which just had two years of record-setting revenue, does not expect to get rich from the venture, John Boland, KQED’s president, said in a telephone interview.


Instead, Mr. Boland said, he is looking for ideas, whether new ways to distribute and share content, raise money or allow KQED’s audience to “engage more deeply with the content and with others.”


The goal is to help KQED reinvent itself in an era where its television ratings have been steadily declining and its radio audience is flat, he said. Broadcast audiences have stagnated even as KQED’s online and mobile audiences have boomed. Demand for its increased offering of local and regional news has been strong as commercial newspapers and television stations have cut back.


Being in the Silicon Valley area, KQED should be “tapping into the innovation ecosystem” outside its doors, Mr. Boland said. He said the accelerator was “specifically designed to attract creative people, entrepreneurs, who have ideas that relate to what we’re calling ‘media for good.’ ”


Mark Perry, a KQED board member who is a general partner in the venture capital firm NEA, called the accelerator “a tremendous opportunity.”


“As this new media world evolves we’re going to need more innovation around — not the content development, because that we know how to do — but how these productions can be distributed in the most effective way across these multiple platforms,” Mr. Perry said by telephone.


“It’s as much to stimulate the innovative side of our entire organization as it is to come up with any particular technique, particular technology or particular insight that may come out,” he said. But entrepreneurs are likely to be attracted to the model because KQED is a potential customer for any project that does work, he said.


Michael Maness, Knight Foundation’s vice president for journalism and media innovation, in a telephone interview said the accelerator also has the potential to speed the learning process for entrepreneurs in the news business. The foundation will also be able to publicly share insights gained from the projects, unlike those generated by private equity accelerators, he added.


The accelerator will be led by Corey Ford, a former producer for the PBS program “Frontline.” Mr. Ford most recently built Runway, an accelerator for the Google chairman Eric E. Schmidt’s early stage venture capital firm, Innovation Endeavors.


Matter Ventures will finance four rounds of five teams each over two years. Each of the 20 teams selected will get $50,000, mentoring from the KQED staff, and educational workshops, as well as work space in the Matter Ventures’ headquarters in the South Park section of San Francisco, just blocks from KQED.


“A big part of this is about the culture and the community that you create,” Mr. Ford said. Each round will end with a day of presentations to potential investors.


Applications for the first class, which will begin work in late February, are being accepted through Jan. 6 at www.matter.vc.


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Terms of Greek Bond Buyback Top Expectations





LONDON — In a bold bid to reduce its debt burden, Greece offered on Monday to spend as much as 10 billion euros to buy back 30 billion euros of its bonds from investors and banks.




While the buyback had been expected, the prices offered by the government were above what the market had forecast, with a minimum price of 30 euro cents and a maximum of 40 cents, for a discount of 60 percent to 70 percent.


Analysts said they expected that the average price would ultimately be 32 to 34 euro cents, a premium of about 4 cents above where the bonds traded at the end of last week.


Pierre Moscovici, the French finance minister, played down concerns that the Greek debt buyback might not go as planned.


“I have no particular anxiety about this,” Mr. Moscovici said Monday at the European Parliament ahead of the meeting in Brussels of euro zone finance ministers to discuss Greece. “It just has to be very quick.”


A successful buyback is critical for Greece. The International Monetary Fund has said that it will lend more money to Greece only if it is reasonably able to show that it is on target to achieve a ratio of debt to annual gross domestic product of less than 110 percent by 2022.


Greece will have at its disposal 10 billion euros, or $13 billion, in borrowed money from Europe. Investors who agree to trade in their Greek bonds will receive six-month treasury bills issued by Europe’s rescue vehicle, the European Financial Stability Facility. The offer will close Friday.


If successful, the exchange will retire about half of Greece’s 62 billion euros in debt owed to the private sector. The country still owes about 200 billion euros to European governments and the I.M.F.


Analysts said that Greek, Cypriot and other government-controlled European banks, which have as much as 20 billion euros worth of bonds, were expected to agree to the deal at a price in the low 30s. That would mean that to complete the transaction, hedge-fund holdings of 8 billion to 10 billion euros in bonds would have to be tendered at a price below 35 cents. Any higher price would mean that Greece would have to ask its European creditors for extra money — an unlikely outcome at this stage.


Even though Greece is so close to bankruptcy, its bonds have become one of the hot investments in Europe. Large hedge funds, like Third Point and Brevan Howard, have accumulated significant stakes, starting this summer when the bonds were trading in the low teens. Shorter-term traders have been snapping up bonds at around 29 cents to make a quick profit by participating in the buyback.


In a research note published Monday, analysts at Nomura in London said it was “reasonable and likely” that enough hedge funds — especially those that might be more risk-averse and or have a shorter perspective — would agree to the deal at a price below 35 cents.


But there are also foreign investors looking to the longer term who may decide to hold onto most of their holdings in the hope that the bonds rally even more after a successful buyback.


“I think the bonds could go to as high as 40 cents in a nonexit scenario,” said Gabriel Sterne, an analyst at Exotix in London, referring to the consensus view that Greece will not leave the euro zone anytime soon.


Bondholders were encouraged by comments from Chancellor Angela Merkel of Germany, reported in the German news media over the weekend, that raised the possibility that European governments might offer Greece debt relief in the future. A number of bondholders expect Greek bond yields to trade more in line with those of Portugal in the coming years, but without the prospect of a future buyback to push up the prices of Greek government bonds, the risk to such an approach is substantial.


Jean-Claude Juncker, the president of the group of finance ministers whose countries use the euro, told a news conference late Monday in Brussels that ministers would meet again on the morning of Dec. 13 to make a final decision on aid disbursement to Greece.


Mr. Juncker said he was confident that Greece would receive its money on that date, but he declined to comment on the prospects for success of the buyback program because it was a sensitive matter for the financial markets.


Mr. Juncker has been the president of the group of ministers since 2005, and the post gives him significant power over what is discussed at the group’s meetings.


Mr. Juncker reiterated at the news conference that he would step down at the end of this year or at the beginning of next year. But he declined to signal his preference for any particular successor.


“I don’t have to endorse anyone,” Mr. Juncker said. “I was asking my colleagues to provide for my succession,” he said, referring to discussions held with ministers earlier in the evening.


Separately, Spain, which is also seeking to overcome crippling debt problems, began the process Monday of formally requesting 39.5 billion euros in emergency aid to recapitalize its banks. It also announced that a tax amnesty had yielded only 1.2 billion euros, less than half what the government had expected.


The request for emergency aid was being sent to authorities managing the euro zone bailout funds, according to Spanish officials, who added that no further approval would be needed from ministers meeting in Brussels.


The request follows the European Commission’s approval last week of a plan to make the granting of the aid conditional on thousands of layoffs and office closings at four Spanish banks: Bankia, Catalunya Banc, NCG Banco and Banco de Valencia.


James Kanter contributed reporting from Brussels.



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With Some Hospitals Closed After Hurricane Sandy, Others Pick Up Slack





A month after Hurricane Sandy struck New York City, unexpectedly shutting down several hospitals, one Upper East Side medical center had so many more emergency room patients than usual that it was parking them in its lobby.




White and blue plastic screens had been set up between the front door and the elevator banks in the East 68th Street building of that hospital, NewYork-Presbyterian/Weill Cornell. The screens shielded 10 gurneys and an improvised nursing station from the view of people obliviously walking in and out of the soaring, light-filled atrium.


“It’s like a World War II ward,” Teri Daniels, who had been waiting a day and a half with a relative who needed to be admitted, said last week.


Since the storm, a number of New York City hospitals have been scrambling to deal with a sharp increase in patients, forcing them to add shifts of doctors and nurses on overtime, to convert offices and lobbies to use for patients’ care, and even, in one case, to go to a local furniture store to buy extra beds.


At Beth Israel Medical Center, 11 blocks south of the Bellevue Hospital Center emergency room, which was shuttered because of storm damage, the average number of visits to the E.R. per day has risen to record levels. Visits have increased by 24 percent this November compared with last, and the numbers show no sign of dropping. Hospital admissions have risen 12 percent compared with last November.


Most of the rise in volume is from patients who had never been to Beth Israel before. An emergency room doctor at the hospital described treating one patient who said he had been born at Bellevue and had never before gone anywhere else.


Emergency room visits have gone up 25 percent at NewYork-Presybterian/Weill Cornell, which in Bellevue’s absence is the closest high-level trauma center — treating stab wounds, gun wounds, people hit by cars and the like — in Manhattan from 68th Street south. Stretchers holding patients have been lined up like train cars around the nursing station and double-parked in front of stretcher bays.


In Brooklyn, some patients in Maimonides Medical Center’s emergency room who need to be admitted are waiting two or three days for a bed upstairs, instead of four or five hours. Almost every one of the additional 1,100 emergency patients this November compared with last November came from four ZIP codes affected by the storm and served by Coney Island Hospital, a public hospital that was closed because of storm damage.


The number of psychiatric emergency patients from those same ZIP codes has tripled, in a surge that began three days before the hurricane, perhaps fueled by anxiety, as well as by displacement from flooded adult homes or programs at Coney Island Hospital, doctors said.


The Maimonides psychiatric emergency room bought five captain’s beds — which do not have railings that can be used for suicide attempts — at a local furniture store, to accommodate extra patients. The regular emergency room had to buy 27 new stretchers after the hurricane, “and we probably need a few more,” the department’s chief, Dr. John Marshall, said.


The emergency room and inpatient operations of four hospitals remain closed because of flooding and storm damage. Besides Bellevue and Coney Island, NYU Langone Medical Center and the VA New York Harbor Healthcare System, both near Bellevue on the East Side of Manhattan, are closed.


While the surge in traffic to other hospitals has been a burden, it has also been a boon, bringing more revenue.


On the Upper East Side, the storm has helped Lenox Hill Hospital, which has a history of financial problems. It took two or three wards that had been turned into offices and converted them back to space for patients. Emergency room visits are up 10 percent, and surgery has been expanded to seven days a week from five.


“We usually operate at slightly over 300 beds, and now we’re at well over 550,” Carleigh Gustafson, director of emergency nursing, said.


Conversely, administrators at the shuttered hospitals, especially NYU Langone, a major teaching center, worry that their patients and doctors are being raided, with some never to return.


NYU’s salaried doctors are being paid through January, on the condition that they do not take another job. But at the same time, they need a place to practice, so NYU administrators have been arranging for them to work as far away as New Jersey until the hospital reopens. Lenox Hill alone has taken on close to 300 NYU doctors, about 600 nurses, and about 150 doctors in training, fellows and medical students.


Obstetricians and surgeons from the closed hospitals have been particularly disadvantaged, since they are dependent on hospitals to treat their patients. Many displaced surgeons have been reduced to treating only the most desperately ill, and operating on nights and weekends, when hospitals tend to be least well staffed.


“I think there’s no question that a lot of people have postponed anything that they can postpone that is elective,” said Dr. Andrew W. Brotman, senior vice president at NYU.


In mid-November, Dr. Michael L. Brodman, chairman of obstetrics at Mount Sinai Medical Center, sent out a memo saying his department had taken on 26 NYU physicians, as well as nurses and residents, but “clearly, that is too much for us to handle long term.”


Since then, 15 of the physicians have gone to New York Downtown Hospital, while Mount Sinai has retained 11 doctors and 26 nurses.


“We are guests in other people’s homes,” Dr. Brotman of NYU said, “and we are guests who have to some degree overstayed their welcome.”


Joanna Walters contributed reporting.



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With Some Hospitals Closed After Hurricane Sandy, Others Pick Up Slack





A month after Hurricane Sandy struck New York City, unexpectedly shutting down several hospitals, one Upper East Side medical center had so many more emergency room patients than usual that it was parking them in its lobby.




White and blue plastic screens had been set up between the front door and the elevator banks in the East 68th Street building of that hospital, NewYork-Presbyterian/Weill Cornell. The screens shielded 10 gurneys and an improvised nursing station from the view of people obliviously walking in and out of the soaring, light-filled atrium.


“It’s like a World War II ward,” Teri Daniels, who had been waiting a day and a half with a relative who needed to be admitted, said last week.


Since the storm, a number of New York City hospitals have been scrambling to deal with a sharp increase in patients, forcing them to add shifts of doctors and nurses on overtime, to convert offices and lobbies to use for patients’ care, and even, in one case, to go to a local furniture store to buy extra beds.


At Beth Israel Medical Center, 11 blocks south of the Bellevue Hospital Center emergency room, which was shuttered because of storm damage, the average number of visits to the E.R. per day has risen to record levels. Visits have increased by 24 percent this November compared with last, and the numbers show no sign of dropping. Hospital admissions have risen 12 percent compared with last November.


Most of the rise in volume is from patients who had never been to Beth Israel before. An emergency room doctor at the hospital described treating one patient who said he had been born at Bellevue and had never before gone anywhere else.


Emergency room visits have gone up 25 percent at NewYork-Presybterian/Weill Cornell, which in Bellevue’s absence is the closest high-level trauma center — treating stab wounds, gun wounds, people hit by cars and the like — in Manhattan from 68th Street south. Stretchers holding patients have been lined up like train cars around the nursing station and double-parked in front of stretcher bays.


In Brooklyn, some patients in Maimonides Medical Center’s emergency room who need to be admitted are waiting two or three days for a bed upstairs, instead of four or five hours. Almost every one of the additional 1,100 emergency patients this November compared with last November came from four ZIP codes affected by the storm and served by Coney Island Hospital, a public hospital that was closed because of storm damage.


The number of psychiatric emergency patients from those same ZIP codes has tripled, in a surge that began three days before the hurricane, perhaps fueled by anxiety, as well as by displacement from flooded adult homes or programs at Coney Island Hospital, doctors said.


The Maimonides psychiatric emergency room bought five captain’s beds — which do not have railings that can be used for suicide attempts — at a local furniture store, to accommodate extra patients. The regular emergency room had to buy 27 new stretchers after the hurricane, “and we probably need a few more,” the department’s chief, Dr. John Marshall, said.


The emergency room and inpatient operations of four hospitals remain closed because of flooding and storm damage. Besides Bellevue and Coney Island, NYU Langone Medical Center and the VA New York Harbor Healthcare System, both near Bellevue on the East Side of Manhattan, are closed.


While the surge in traffic to other hospitals has been a burden, it has also been a boon, bringing more revenue.


On the Upper East Side, the storm has helped Lenox Hill Hospital, which has a history of financial problems. It took two or three wards that had been turned into offices and converted them back to space for patients. Emergency room visits are up 10 percent, and surgery has been expanded to seven days a week from five.


“We usually operate at slightly over 300 beds, and now we’re at well over 550,” Carleigh Gustafson, director of emergency nursing, said.


Conversely, administrators at the shuttered hospitals, especially NYU Langone, a major teaching center, worry that their patients and doctors are being raided, with some never to return.


NYU’s salaried doctors are being paid through January, on the condition that they do not take another job. But at the same time, they need a place to practice, so NYU administrators have been arranging for them to work as far away as New Jersey until the hospital reopens. Lenox Hill alone has taken on close to 300 NYU doctors, about 600 nurses, and about 150 doctors in training, fellows and medical students.


Obstetricians and surgeons from the closed hospitals have been particularly disadvantaged, since they are dependent on hospitals to treat their patients. Many displaced surgeons have been reduced to treating only the most desperately ill, and operating on nights and weekends, when hospitals tend to be least well staffed.


“I think there’s no question that a lot of people have postponed anything that they can postpone that is elective,” said Dr. Andrew W. Brotman, senior vice president at NYU.


In mid-November, Dr. Michael L. Brodman, chairman of obstetrics at Mount Sinai Medical Center, sent out a memo saying his department had taken on 26 NYU physicians, as well as nurses and residents, but “clearly, that is too much for us to handle long term.”


Since then, 15 of the physicians have gone to New York Downtown Hospital, while Mount Sinai has retained 11 doctors and 26 nurses.


“We are guests in other people’s homes,” Dr. Brotman of NYU said, “and we are guests who have to some degree overstayed their welcome.”


Joanna Walters contributed reporting.



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5 Nations Summon Israeli Envoys to Protest Settlement Plans





JERUSALEM — Britain, France, Spain, Sweden and Denmark summoned the Israeli ambassadors to their countries on Monday to protest Israel’s plans for increased settlement construction, an unusually sharp diplomatic step that reflected the growing frustration abroad with Israel’s policies on the Palestinian issue.




After the General Assembly voted overwhelmingly last week to upgrade the status of the Palestinians at the United Nations, Israel announced plans for 3,000 more housing units in contested areas east of Jerusalem and around the West Bank.


Israel raised particular alarms with its decision to continue planning and zoning work for the development of a contentious area known as E1, a project vehemently opposed internationally because it would partially separate the northern and southern West Bank, harming the prospects of a contiguous Palestinian state.


The move raised questions in Israel about whether the country’s leaders were putting domestic political interests ahead of its foreign relations, with Israeli elections scheduled for late January.


“Bibi had to do something” in response to the United Nations vote, said Prof. Shmuel Sandler of the Begin-Sadat Center for Strategic Studies at Bar-Ilan Universiy, referring to the prime minister of Israel, Benjamin Netanyahu, by his nickname, “first because he is Bibi and second because of the elections.”


Mr. Sandler said that Mr. Netanyahu, a conservative, was making the mistake of competing against those further to his right, adding, “But I don’t think he expected such a reaction” internationally.


Yet Israel remained defiant. The prime minister’s office issued a statement on Monday, saying, “Israel will continue to stand for its essential interests, even in the face of international pressure, and there will be no change in the decision it has taken.”


A press officer for United Nations Secretary General Ban Ki-moon said in a statement on Sunday that construction in E1 “would represent an almost fatal blow to remaining chances of securing a two-state solution.”


European countries long opposed to Israeli settlement construction went beyond their usual statements of condemnation.


The countries that called in the Israeli ambassadors “expressed their strong protests about the announced settlement plans,” said Yigal Palmor, the spokesman for the Israeli Foreign Ministry.


Mr. Palmor said that the Israeli ambassadors told their hosts that Israel has been warning for months that the Palestinian bid at the United Nations would not go unanswered and would have implications.


Israel has described the bid as a unilateral Palestinian step that violates previous signed agreements. The Palestinians have long refused to negotiate with Israel without a halt in settlement construction.


France, Spain, Sweden and Denmark voted for the Palestinian upgrade, while Britain abstained. Although Israel had expected the resolution to pass, officials here expressed disappointment over the lack of support from several friendly European nations. Israel was particularly surprised by Germany’s decision to abstain in the vote, having expected Germany to go with Israel.


Prime Minister Benjamin Netanyahu is scheduled to visit Germany this week. Despite the so-called special relationship between Israel and Germany, Chancellor Angela Merkel has not minced words about her opposition to Israeli settlement construction in the past.


Philippe Lalliot, a spokesman for the French Foreign Ministry, said in a statement on Monday that “Settlement activity is illegal under international law, hurts the confidence necessary for a return to dialogue and constitutes an obstacle to a just peace founded on the two-state solution.”


The British Foreign Office said it deplored the Israeli settlement plans and that it had called on the Israeli government to reverse the decision.


But Israeli officials denied that the government’s policies were isolating Israel.


“It is well known that Europe and Israel have a different approach on settlements,” said one Israeli official, speaking on condition of anonymity. “There is nothing new here. If European countries would have behaved differently in their vote at the United Nations last week,” he continued, “we may have reacted differently.”


Analysts here said that after showing strong support for Israel during its military campaign last month against Hamas, the Islamic militant group that controls Gaza, European countries had felt the need to bolster the more moderate Palestinian wing led by President Mahmoud Abbas in its United Nations bid.


At the weekly cabinet meeting on Sunday, Mr. Netanyahu said, “Today we are building and we will continue to build in Jerusalem and in all areas that are on the map of the strategic interests of the State of Israel.”


But beyond the tit-for-tat measures set off by the United Nations vote, analysts pointed to a trend of deteriorating relations between Israel and Europe in particular.


“That is because the top-level people making decisions here in recent years are completely insular and out of touch with the rest of the world, especially regarding the Palestinians and the settlements,” said Mark Heller, a foreign-policy analyst at the Institute for National Security Studies at Tel Aviv University. “Self-righteousness may be good for domestic politics,” he said, but it is not a policy.”


At the United Nations General Assembly on Thursday, 138 nations voted in favor of upgrading the status of the Palestinians and 41 abstained. The nine that voted against it were Israel, the United States, Canada, the Czech Republic, the Marshall Islands, Micronesia, Nauru, Panama and Palau.


Scott Sayare contributed reporting from Paris.



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Partnership Offers Support for Media Ventures


Can the nascent entrepreneurial ideas bouncing around Silicon Valley help reinvent public media?


Matter Ventures, a start-up accelerator that will provide four months of financial and logistical support for budding media entrepreneurs, will be unveiled Monday by its partners: KQED, a public television and radio station operator; the John S. and James L. Knight Foundation; and the Public Radio Exchange, known as PRX.


KQED, based in San Francisco, and the Knight Foundation are each investing $1.25 million in the initial $2.5 million fund and will have an equity stake in any projects that become viable businesses. PRX, based in Cambridge, Mass., is contributing strategic and management support. The project was announced a year ago as a PRX endeavor to be financed by Knight, before KQED became an investor.


While the partners would love to find the next Google, KQED, which just had two years of record-setting revenue, does not expect to get rich from the venture, John Boland, KQED’s president, said in a telephone interview.


Instead, Mr. Boland said, he is looking for ideas, whether new ways to distribute and share content, raise money or allow KQED’s audience to “engage more deeply with the content and with others.”


The goal is to help KQED reinvent itself in an era where its television ratings have been steadily declining and its radio audience is flat, he said. Broadcast audiences have stagnated even as KQED’s online and mobile audiences have boomed. Demand for its increased offering of local and regional news has been strong as commercial newspapers and television stations have cut back.


Being in the Silicon Valley area, KQED should be “tapping into the innovation ecosystem” outside its doors, Mr. Boland said. He said the accelerator was “specifically designed to attract creative people, entrepreneurs, who have ideas that relate to what we’re calling ‘media for good.’ ”


Mark Perry, a KQED board member who is a general partner in the venture capital firm NEA, called the accelerator “a tremendous opportunity.”


“As this new media world evolves we’re going to need more innovation around — not the content development, because that we know how to do — but how these productions can be distributed in the most effective way across these multiple platforms,” Mr. Perry said by telephone.


“It’s as much to stimulate the innovative side of our entire organization as it is to come up with any particular technique, particular technology or particular insight that may come out,” he said. But entrepreneurs are likely to be attracted to the model because KQED is a potential customer for any project that does work, he said.


Michael Maness, Knight Foundation’s vice president for journalism and media innovation, in a telephone interview said the accelerator also has the potential to speed the learning process for entrepreneurs in the news business. The foundation will also be able to publicly share insights gained from the projects, unlike those generated by private equity accelerators, he added.


The accelerator will be led by Corey Ford, a former producer for the PBS program “Frontline.” Mr. Ford most recently built Runway, an accelerator for the Google chairman Eric E. Schmidt’s early stage venture capital firm, Innovation Endeavors.


Matter Ventures will finance four rounds of five teams each over two years. Each of the 20 teams selected will get $50,000, mentoring from the KQED staff, and educational workshops, as well as work space in the Matter Ventures’ headquarters in the South Park section of San Francisco, just blocks from KQED.


“A big part of this is about the culture and the community that you create,” Mr. Ford said. Each round will end with a day of presentations to potential investors.


Applications for the first class, which will begin work in late February, are being accepted through Jan. 6 at www.matter.vc.


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Advertising: Ford Plan to Revive Lincoln Hinges on a New Brand


An unusual ad campaign features Abraham Lincoln, the president for whom the car brand is named.







DEARBORN, Mich. — In the fiercely competitive world of luxury cars, the Ford Motor Company’s Lincoln brand has long been stuck in the slow lane, with stodgy models, older buyers and a distinct lack of pizazz.




But Ford is determined to change that. On Monday, the company will announce upgraded customer service initiatives, a new brand name for Lincoln that plays down the Ford connection and an unusual advertising campaign that features Abraham Lincoln, the president for whom the brand is named.


Ford’s chief executive, Alan R. Mulally, will begin the rebranding effort at an event outside Lincoln Center in Manhattan — the first in a series of moves meant to reverse Lincoln’s seemingly perpetual state of decline.


Ford will formally rechristen the brand as the Lincoln Motor Company and introduce a television spot that begins with an image of Lincoln, stovepipe hat and all. The brand’s first Super Bowl commercial is in the works, as is a revamped Web site that links consumers to a Lincoln “concierge” who can arrange test drives or set up appointments at dealerships.


Mr. Mulally will also announce the on-sale date in early 2013 for the radically redesigned Lincoln MKZ sedan, as well as plans for three new vehicles down the road.


If it seems like an all-out grab for attention, well, that’s exactly the point, said James D. Farley Jr., Ford’s head of global sales and marketing and the newly named chief of the Lincoln revival effort.


“The most important thing is for people to be aware that there is a transition going on,” Mr. Farley said. “We have to shake them up.”


The shake-up is long overdue and critically important to Ford, the nation’s second-largest car company behind General Motors.


As recently as the 1990s, Lincoln was the top-selling luxury automotive brand in the United States. Its large Town Car sedan and hulking Navigator S.U.V. defined the brand, and sales topped more than 230,000 vehicles a year.


But since then, Lincoln has been left in the dust by the German category leaders BMW and Mercedes-Benz, and Toyota’s Lexus division. This year, Lincoln ranks eighth in the American luxury segment, with sales down 2 percent, to 69,000, vehicles in the first 10 months of the year.


Its crosstown rival G.M. has had much better success reviving its Cadillac brand.


“Cadillac has been stabilized, but Lincoln is still muddling about,” said Jack Trout, president of the marketing firm Trout and Partners. “The big question is, how can Lincoln convince people it is more than just a gussied-up Ford?”


That task has now fallen to Mr. Farley, who left Toyota five years ago to join Ford just as Mr. Mulally’s transformation of the company was under way. Since then, Ford has introduced a succession of sleeker, more fuel-efficient and technology-laden models that have lifted sales and made it among the most profitable car companies in the world.


Lincoln, however, has not benefited from the turnaround. It accounts for only 3 percent of Ford’s total sales, down from 8 percent during the brand’s heyday. And since Ford has sold off foreign luxury divisions like Volvo and Jaguar, Lincoln is the sole upscale brand in the company.


“There is nothing more frustrating for us than to have someone who loves their Ford car and S.U.V., but goes out to buy a luxury model from another brand because we don’t have one,” Mr. Farley said.


The Lincoln comeback effort starts with the midsize MKZ, which has been redesigned with a sweeping grille, tapered body style and an all-glass retractable roof. It will be followed by three other new models, including a larger sedan and S.U.V.


But the brand’s image needs much more than better cars. Under Mr. Farley’s direction, a newly formed team of 200 people is intent on establishing the Lincoln Motor Company as a boutique luxury line known for personalized service.


Every customer who reserves an MKZ, for example, will be presented with an elegant gift upon receiving the car. Choices include a selection of wines and Champagne, custom-made jewelry or sunglasses, or a one-night stay at a Ritz-Carlton hotel.


Lincoln’s Web site will also have a consultant available 24 hours a day for live discussions about the products and to streamline the buying process. Prospective buyers will be given an opportunity for a “date night” with Lincoln, which includes a two-day test drive and a free meal at a restaurant.


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Vietnam Veterans, Claiming PTSD, Sue for Better Discharges





NEW HAVEN — In the summer of 1968, John Shepherd Jr. enlisted in the Army, figuring that the draft would get him anyway. By January 1969, he was in the Mekong Delta, fighting with the Ninth Infantry Division.




Within a month, his patrol was ambushed, and Mr. Shepherd responded by tossing a hand grenade into a bunker that killed several enemy soldiers. The Army awarded him a Bronze Star with a valor device, one of its highest decorations.


Yet the medal did little to assuage Mr. Shepherd’s sense of anxiousness and futility about the war. A few weeks after his act of heroism, he said, his platoon leader was killed by a sniper as he tried to help Mr. Shepherd out of a canal. It was a breaking point: his behavior became erratic, and at some point he simply refused to go on patrol.


“I never felt fear like I felt when he got shot,” Mr. Shepherd said last week.


After a court-martial, the Army discharged Mr. Shepherd under other-than-honorable conditions, then known as an undesirable discharge. At the time, he was happy just to be a civilian again. But he came to rue that discharge, particularly after his claim for veterans benefits was denied because of it.


Today, Mr. Shepherd, 65, is part of a class-action lawsuit against the armed forces arguing that he and other Vietnam veterans had post-traumatic stress disorder when they were issued other-than-honorable discharges. The suit, filed in Federal District Court, demands that their discharges be upgraded.


The suit raises two thorny issues that could affect thousands of Vietnam veterans: Can they be given a diagnosis of PTSD retroactively, to their time in service, though the disorder was not identified until 1980? And if they can, should recently instituted policies intended to protect troops with PTSD be applied retroactively to their cases?


Mr. Shepherd’s legal team, students with the Yale Law School veterans legal clinic, argues yes on both counts. In court papers, they assert that it is reasonable to assume that Mr. Shepherd and other veterans who were later given PTSD diagnoses began exhibiting troublesome symptoms while in service.


Moreover, under rules put in place during the Iraq war, troops who say they have PTSD must be given medical examinations before they are forced out of the military, to ensure that problematic behavior is not linked to the disorder. If they are given a PTSD diagnosis, service members may still receive an honorable discharge.


“Vietnam War-era veterans, in contrast, have been denied this opportunity for appropriate consideration of the PTSD,” the students said in the complaint.


But the Army says no. In a rejection of an earlier request by Mr. Shepherd to upgrade his discharge, the Army tersely rejected evidence that his misconduct 43 years ago was linked to PTSD and raised questions about whether his platoon leader was actually killed.


A spokesman for the Army said the military has a policy of not discussing pending litigation.


The details of Mr. Shepherd’s case aside, the suit could have a wide impact. The Yale team says that its review of records from 2003 to 2012 shows that 154 Vietnam-era veterans petitioned the Army to upgrade discharges because of PTSD, but that only two were successful. Yet the Army Board of Corrections for Military Records granted upgrades nearly half of the time for other cases.


The students estimate that more than a quarter million Vietnam-era veterans were discharged under other-than-honorable conditions, and that thousands of those probably had PTSD. Their suit names as defendants the secretaries for the Army, Air Force and Navy. Vietnam Veterans of America, the veterans service organization, is joining the case as a plaintiff on Monday.


Discharges that are other than honorable can make it harder for veterans to find work and also disqualify them for veterans benefits.


In Mr. Shepherd’s case, a Department of Veterans Affairs doctor in 2004 gave him a diagnosis of service-connected PTSD. As a result, the department will provide health care for his PTSD. But it will not provide him general medical care, unless he is found to have other health problems related to his service.


Veterans disability compensation is also a problem. Mr. Shepherd’s undesirable discharge was actually upgraded to a general discharge in the 1970s under a special Carter administration program. That upgrade should have made it easier for him to apply for disability compensation. But subsequent legislation enacted by Congress said that clemency upgrades like Mr. Shepherd’s did not automatically qualify veterans for benefits. Mr. Shepherd’s compensation claim was ultimately rejected.


Mr. Shepherd, who has been divorced twice and battled through alcoholism and drug abuse, lives in New Haven, getting by on Social Security and a Teamsters pension. (He drove trucks for years.) He could use the extra money from disability compensation, but what matters as much, he says, is removing the stain of his discharge.


“I want that honorable,” he said. “I did do my part, until I really felt it wasn’t worth getting killed for.”


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Vietnam Veterans, Claiming PTSD, Sue for Better Discharges





NEW HAVEN — In the summer of 1968, John Shepherd Jr. enlisted in the Army, figuring that the draft would get him anyway. By January 1969, he was in the Mekong Delta, fighting with the Ninth Infantry Division.




Within a month, his patrol was ambushed, and Mr. Shepherd responded by tossing a hand grenade into a bunker that killed several enemy soldiers. The Army awarded him a Bronze Star with a valor device, one of its highest decorations.


Yet the medal did little to assuage Mr. Shepherd’s sense of anxiousness and futility about the war. A few weeks after his act of heroism, he said, his platoon leader was killed by a sniper as he tried to help Mr. Shepherd out of a canal. It was a breaking point: his behavior became erratic, and at some point he simply refused to go on patrol.


“I never felt fear like I felt when he got shot,” Mr. Shepherd said last week.


After a court-martial, the Army discharged Mr. Shepherd under other-than-honorable conditions, then known as an undesirable discharge. At the time, he was happy just to be a civilian again. But he came to rue that discharge, particularly after his claim for veterans benefits was denied because of it.


Today, Mr. Shepherd, 65, is part of a class-action lawsuit against the armed forces arguing that he and other Vietnam veterans had post-traumatic stress disorder when they were issued other-than-honorable discharges. The suit, filed in Federal District Court, demands that their discharges be upgraded.


The suit raises two thorny issues that could affect thousands of Vietnam veterans: Can they be given a diagnosis of PTSD retroactively, to their time in service, though the disorder was not identified until 1980? And if they can, should recently instituted policies intended to protect troops with PTSD be applied retroactively to their cases?


Mr. Shepherd’s legal team, students with the Yale Law School veterans legal clinic, argues yes on both counts. In court papers, they assert that it is reasonable to assume that Mr. Shepherd and other veterans who were later given PTSD diagnoses began exhibiting troublesome symptoms while in service.


Moreover, under rules put in place during the Iraq war, troops who say they have PTSD must be given medical examinations before they are forced out of the military, to ensure that problematic behavior is not linked to the disorder. If they are given a PTSD diagnosis, service members may still receive an honorable discharge.


“Vietnam War-era veterans, in contrast, have been denied this opportunity for appropriate consideration of the PTSD,” the students said in the complaint.


But the Army says no. In a rejection of an earlier request by Mr. Shepherd to upgrade his discharge, the Army tersely rejected evidence that his misconduct 43 years ago was linked to PTSD and raised questions about whether his platoon leader was actually killed.


A spokesman for the Army said the military has a policy of not discussing pending litigation.


The details of Mr. Shepherd’s case aside, the suit could have a wide impact. The Yale team says that its review of records from 2003 to 2012 shows that 154 Vietnam-era veterans petitioned the Army to upgrade discharges because of PTSD, but that only two were successful. Yet the Army Board of Corrections for Military Records granted upgrades nearly half of the time for other cases.


The students estimate that more than a quarter million Vietnam-era veterans were discharged under other-than-honorable conditions, and that thousands of those probably had PTSD. Their suit names as defendants the secretaries for the Army, Air Force and Navy. Vietnam Veterans of America, the veterans service organization, is joining the case as a plaintiff on Monday.


Discharges that are other than honorable can make it harder for veterans to find work and also disqualify them for veterans benefits.


In Mr. Shepherd’s case, a Department of Veterans Affairs doctor in 2004 gave him a diagnosis of service-connected PTSD. As a result, the department will provide health care for his PTSD. But it will not provide him general medical care, unless he is found to have other health problems related to his service.


Veterans disability compensation is also a problem. Mr. Shepherd’s undesirable discharge was actually upgraded to a general discharge in the 1970s under a special Carter administration program. That upgrade should have made it easier for him to apply for disability compensation. But subsequent legislation enacted by Congress said that clemency upgrades like Mr. Shepherd’s did not automatically qualify veterans for benefits. Mr. Shepherd’s compensation claim was ultimately rejected.


Mr. Shepherd, who has been divorced twice and battled through alcoholism and drug abuse, lives in New Haven, getting by on Social Security and a Teamsters pension. (He drove trucks for years.) He could use the extra money from disability compensation, but what matters as much, he says, is removing the stain of his discharge.


“I want that honorable,” he said. “I did do my part, until I really felt it wasn’t worth getting killed for.”


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In Damascus, Tense Anticipation of Strongest Push Yet by Rebels


Joseph Eid/Agence France-Presse — Getty Images


Distant explosions have awakened a sense of foreboding even in the tranquil Old City.







BEIRUT, Lebanon — As Syrian rebels and government forces clashed on the outskirts of Damascus on Saturday, with explosions rumbling in the distance and warplanes screeching overhead, the rebels appeared to be making their strongest push toward the city since the government repelled an offensive there in July.




A quiet tension prevailed downtown. But security checkpoints were proliferating, and there were reports that President Bashar al-Assad was preparing loyal divisions to defend the city, the capital and heart of his power.


Military analysts warned that it was impossible to know whether a decisive battle for Damascus was beginning, especially as Syrians lost access to the Internet for 53 hours, limiting the flow of information, before it was restored on Saturday. But they said that a government fight to defend its core could be the fiercest and most destructive phase yet of the 20-month conflict.


“We’re waiting for the big battle to begin,” said Emile Hokayem, an analyst based in Bahrain for the International Institute for Strategic Studies.


For decades, the Assad family has settled loyal military families, many from its minority Alawite sect, in the western outskirts of Damascus, where the presidential palace sits on a plateau overlooking the city. The current fighting suggested that the government was trying to insulate those areas, along with the city center and airport, from the semicircle of urban sprawl curving from northeast to southwest, where rebels have strengthened their position in recent days, overrunning a string of small bases.


Analysts say that Mr. Assad, knowing that losing Damascus could be a decisive blow, has been conserving his best and most loyal troops and much of his artillery for a battle there.


“We’re not yet at a point where the regime is in total panic mode and can no longer make rational — however nasty — decisions about military strategy,” Mr. Hokayem said. “He has to decide which cities around Damascus to destroy and which cities to keep in hand.”


When Damascus was threatened in July, the government pulled forces from parts of northern and southern Syria — allowing rebels to consolidate gains in the north — and there were reports that something similar was happening now. An activist in Damascus said Saturday that elements of the army’s feared Fourth Division, led by Maher al-Assad, the president’s brother, were at the Aqraba military airport near the Damascus airport. There were unconfirmed reports that other top divisions and special forces were headed for the city, said Joseph Holliday, an analyst at the Institute for the Study of War, in Washington.


“When the rebels score victories in Damascus, it forces the regime to contract more quickly” in the areas that it contests elsewhere, he said.


To some extent that has already happened, said one diplomat, Nasser Judeh, the foreign minister of Jordan. “There are large areas of Syria that are beyond the control of the regime now,” he said Saturday in Washington. “The opposition and the rebel forces are making serious advances. Things are moving in a different direction compared to what they were a few weeks ago.”


Analysts said rebels were unlikely to quickly overrun the government’s positions in the capital. The government has defended chosen strong points, including its most important helicopter base, in the northern province of Idlib, and a base on the road between Damascus and the commercial hub of Aleppo. Rebels have besieged both for months without taking them.


But the encroachment on Damascus has a profound psychological effect that could hasten the crumbling of Mr. Assad’s support — or deepen it among those who fear their fates are tied to his. In July, when rebels briefly held the southern Damascus neighborhood of Midan and bombed a military headquarters downtown, killing four top officials, some government supporters fled to Lebanon and coastal Alawite strongholds, analysts said.


Last month, rebel bombings in Mezze 86, a neighborhood of Alawite military families near the palace, unsettled government supporters amid suspicions of an inside job. In recent weeks, officials have expressed fear of commuting home to the suburbs, worrying that Sunni Muslim conscript soldiers at checkpoints will turn on them, shifting allegiance to the mostly Sunni uprising, said analysts, activists and a foreign reporter recently in Damascus.


Reporting was contributed by Neil MacFarquhar and Hania Mourtada from Beirut; Thomas Erdbrink from Tehran; Hala Droubi from Dubai, United Arab Emirates; and Elisabeth Bumiller from Washington.



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