Ireland Seeks Easing of Its Debt Terms

DUBLIN — Ireland has been widely praised as the good pupil of the euro zone’s austerity school of thought. Now it wants to be rewarded.

Ireland, whose banking crisis required it to receive a bailout of €85 billion, or $110 billion, by international lenders in 2010, is pressing for the right to ease the payback terms of billions of euros of debt it incurred in that process. It is also pushing other European capitals to stick to a promise made last year that the euro zone’s bailout fund could eventually be used to prop up struggling banks directly, relieving governments of that burden.

Ireland’s proposals are likely to come up when European finance ministers begin two days of meetings in Brussels on Monday.

The issue is significant because it could have a decisive impact on the ability of a fragile Irish economy to emerge from the crisis, officials say. And within European politics, a new relief package would be significant because Ireland is the only bailed-out euro zone country so far that in hewing to the harsh austerity terms of its rescue has shown clear, if early, signs of an economic recovery.

Since 2008 the country has come up with spending cuts and tax increases totaling 18 percent of its gross domestic product. But unemployment remains high and households remain weighed down with debt, a legacy of the real estate crash that was the main cause of the banks’ troubles.

And yet, visiting Dublin on Thursday, the president of the European Commission, José Manuel Barroso, said that Ireland had “turned the corner,” proving that the international rescue programs put together by the euro zone and the International Monetary Fund “can work and that there is light at the end of the tunnel.”

Ireland is pressing an issue raised at a European Union summit meeting last June, when leaders promised that the euro zone’s bailout fund would eventually be able to lend directly to troubled banks, once a more centralized banking system was in place for the 17-nation euro zone.

At the time the deal was seen as significant because it could alleviate the debt burdens that bank bailouts had placed on the governments of Ireland and Spain, among others. But in subsequent months, the finance ministers of Germany, Finland and the Netherlands sought to dilute the agreement, arguing that it referred only to new bank rescues and not to so-called historic or legacy assets.

In addition to direct help for its banks, Ireland is also pressing for longer maturity dates on its international loans. Mr. Barroso, asked by reporters Thursday about Ireland’s proposals, said that the European Commission — the administrative arm of the Union — “has been arguing for rewards to those who are the good performers in terms of the programs.”

He cited Ireland and another bailed-out euro member, Portugal, as the members “we have a positive attitude toward.”

Under Ireland’s definition, its “dead banks,” which were crushed by the weight of bad debt incurred in the property and credit bubble, would not qualify. These include Irish Bank Resolution Corp., which took over Anglo Irish Bank, and the Irish Nationwide Building Society.

But banks that still operate but have been recapitalized by the state could receive help.

Michael Noonan, the Irish finance minister, said there was “a distinction being drawn between the word ‘legacy’ and the word ‘retrospective.”’

“If you have a dead bank there are legacy issues, and we are not negotiating for anything broadly to be done for Anglo Irish-I.B.R.C.,” Mr. Noonan said.

He said that about €28 billion was invested in banks that were still trading, and that this was debt his government would like the euro zone bailout fund, the European Stability Mechanism, to assume.

Though no direct recapitalization of banks from that fund is likely to take effect before the end of the year, a promise that Ireland could receive such help could bolster market confidence. That might aid Ireland’s effort to emerge from the bailout program and return to the bond markets fully next year.

Alan Barrett, head of the economic analysis division at Ireland’s Economic and Social Research Institute, said there were several factors that could derail the government’s plans. These include a lack of domestic economic demand, the weakness of vital export markets including the euro zone, and the appreciation of the euro against the currency of Ireland’s neighbor and key trading partner, Britain.

And while Ireland’s ratio of debt to gross domestic product has been forecast as peaking soon at around 120 percent and then begin to fall, Mr. Barrett estimated that there was still a 30 percent chance that this would not happen. “We are basically of the view that this is a fairly unstable situation,” he said.

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Croatia Withdrawing Soldiers from U.N. Force on Israel-Syria Frontier

Prime Minister Zoran Milanovic of Croatia said Thursday that his country would withdraw its soldiers from a United Nations peacekeeping force in the Golan Heights following reports that Croatia was funneling weapons to antigovernment fighters in Syria.

Croatia has nearly 100 soldiers serving with the United Nations Disengagement Observer Force, which is responsible for maintaining the fragile calm between Israeli and Syrian troops at the demilitarized zone along Syria’s Golan frontier that was established after a cease-fire ended the 1973 war.

The decision to withdraw the soldiers from the area came after The New York Times reported on Monday that Saudi Arabia had underwritten a large purchase of infantry arms in Croatia. Croatia has denied selling weapons to either Saudi Arabia or the Syrian rebels. But Mr. Milanovic said that reports of the sales had put Croatian soldiers at risk and that he was compelled to withdraw them because their safety could no longer be assured.

“We can deny over and over again, but everyone has already read these reports and our soldiers are no longer safe. We want them to return home safe and sound,” he told a cabinet meeting in Zagreb, the capital of Croatia. Citing the Times report, he said, “We can’t be sure if someone will take action against our units after the release of the information.”

According to United States and Western officials, in December arms left over from the Balkan wars of the 1990s began to reach rebels battling the forces of President Bashar al-Assad of Syria, via Jordan.

Since then, officials said, several planeloads of weapons had left Croatia. Yugoslav weapons previously unseen in the conflict, including recoilless guns, assault rifles and machine guns, began to appear in videos posted by Syrian rebels on YouTube.

The infusion of arms appeared to signify a more activist approach to helping Syria’s armed opposition, and as a counterweight to Iranian support for the Assad government.

Before the Arab Spring uprisings of 2011, Croatia had relatively strong political and economic ties to Damascus. But analysts said that Croatia, which is to join the European Union this year, had since firmly sided with the rebels, abiding by European Union sanctions against Damascus, offering financial aid to Syrian refugees and recognizing the Syrian opposition as the only legitimate representative of the Syrian people.

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First Lady Announces Public-Private Plan to Bolster Physical Education

CHICAGO — As part of her campaign to curb childhood obesity, Michelle Obama on Thursday announced an ambitious plan to increase physical education in the country’s public schools with the help of private companies.

Jeff Haynes/Reuters

Michelle Obama spoke in Chicago on Thursday about her plan to increase physical activity in schools.

Under the $70 million program, the first public-private partnership of its kind, schools will be able to apply for grants to assess and improve their health and physical education programs, with the goal of getting children to exercise an hour a day.

“This is an earth-shattering awesomely inspiring day,” Mrs. Obama said in an emotional speech announcing the program in her hometown. “I grew up just a few miles from where we are today, over on the South Side.” She said that even though “my family certainly wasn’t rich, our neighborhood was barely middle class,” back then “being active was a way of life.” She recalled doing double Dutch on jump-ropes and going to summer camp.

“Where would I have been without those activities that kept be busy and safe and off the streets?” she said.

The program is supported by Nike, which will provide $50 million over five years to help schools and communities set up programs and spaces to get children to exercise. Other groups, including the GENYOUth Foundation, ChildObesity180, Kaiser Permanente and the General Mills Foundation, will give a combined $20 million for grants, training and other resources to help develop exercise programs and other health programs in schools.

All the money will be offered through Let’s Move Active Schools, Mrs. Obama ‘s new initiative. It will be administered through the President’s Council on Fitness, Sports and Nutrition, the American Alliance for Health, Physical Education, Recreation and Dance, and the Alliance for a Healthier Generation.

“This is a huge deal for me,” said Education Secretary Arne Duncan, who appeared with Mrs. Obama. “When students have a chance to play and be active, they do better academically. This needs to become the norm.”

Mr. Duncan said he hoped the initiative would spread to 50,000 schools over the next five years. Schools will be able to sign up at LetsMoveSchools.org, where they will be directed to training programs.

Mrs. Obama, who is on a three-city, two-day tour to promote her Let’s Move initiative to reduce childhood obesity, was joined in Chicago by Mayor Rahm Emanuel, as well as the athletes Serena Williams, Gabrielle Douglas, Allyson Felix, Bo Jackson, Colin Kaepernick, Sarah Reinertsen, Ashton Eaton, Paul Rodriguez and Dominique Dawes, and the personal trainer Bob Harper. Ms. Williams said the program “has Serena written all over it.”

Mr. Duncan said that Mrs. Obama’s support would help bring a similar attention to exercise that she had to school lunches. “She brings voice, she brings power, she brings tremendous personal passion,'’ he said. “She speaks from experience.”

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DealBook: Heinz Case May Involve a Side Bet in London

Regulators have escalated an investigation into suspicious trades placed ahead of the $23 billion takeover of H. J. Heinz, focusing on a complex derivative bet routed through London, according to two people briefed on the matter.

The development builds on a recent regulatory action mounted against a Goldman Sachs account in Switzerland that bought Heinz options contracts. It also comes a week after the Federal Bureau of Investigation said it opened a criminal inquiry.

An unusual spike in trading volume in Heinz options a day before the deal was announced first attracted investigators. The Securities and Exchange Commission is also examining fluctuations in ordinary stock trades. The Financial Industry Regulatory Authority, Wall Street’s self-regulatory group, recently referred suspicious stock trades to the S.E.C., a person briefed on the matter said.

Now the S.E.C. is looking into a more opaque corner of the investing world, examining a product known as a contract-for-difference, a derivative that allows investors to bet on changes in the price of stocks without owning the shares. Such contracts are not regulated in the United States, but are popular in Britain. Regulators there recently opened an inquiry into the Heinz trades, one of the people briefed on the matter said.

The expansion of the Heinz investigation illustrates the growing challenges facing American regulators. Charged with policing the American exchanges, authorities increasingly find themselves having to hunt through a dizzyingly complex global marketplace.

After a number of prominent crackdowns on insider stock trading, a campaign that scared the markets, investors are seeking subtler and more sophisticated tools to seize on confidential tidbits. Trading operations also flocked overseas, a careful move that forces the S.E.C. to navigate a maze of international regulations before identifying suspect traders.

The Heinz case illustrates the shift, as the S.E.C. relies on Swiss authorities to expose the trader behind the Heinz options bets.

The suspicious options trades were routed through a Goldman Sachs account in Zurich, where laws prevent the firm from sharing details of the account holder’s identity. In a complaint filed two weeks ago, the S.E.C. froze the account of “one or more unknown traders.” A federal judge upheld that freeze last week, a move that will prevent the traders from spending their winnings or moving the money.

The series of well-timed options trades, bets that produced $1.7 million in potential profits, came just a day before Berkshire Hathaway and the investment firm 3G Capital announced that they had agreed to buy the ketchup maker. News of the deal sent the company’s shares, and the value of the options contracts, soaring.

The S.E.C. called the trading “highly suspicious,” given that there was scant options trading in Heinz in previous months.

“Irregular and highly suspicious options trading immediately in front of a merger or acquisition announcement is a serious red flag,” Daniel M. Hawke, head of the commission’s market abuse unit, said recently.

While the identity remains a secret, the account holder is a Goldman private wealth management client, according to a person briefed on the matter who was not authorized to speak on the record. Goldman executives in Zurich know the identity of the person, but laws prohibit those executives from sharing the name with American regulators and even Goldman executives outside of Switzerland.

Finma, the Swiss regulator, is the gatekeeper for American regulators. The S.E.C. contacted Finma in an effort to learn more about the trading, and the Swiss regulator has promised to help. It could take weeks to identify the traders.

Goldman has hired outside counsel to advise it on the situation, according to people briefed on the situation who were not authorized to speak on the record. The bank, which is not accused of wrongdoing, is cooperating with the investigation.

An S.E.C. spokesman declined to comment.

The agency’s inquiry may cast a cloud over the Heinz deal. After the traders are identified, the focus will turn to the insiders who had information on the deal and could have leaked details. Dozens of people had confidential information about the deal, including bankers, lawyers and executives for both the buyers and the seller.

As the agency continues to build its case against the options trades, it also is examining suspicious contracts-for-difference.

Investors increasingly favor the contracts because they require little capital investment and can be traded on margin. They are popular on the London Stock Exchange, where regulators are now focusing some attention.

In essence, the derivatives contracts are a side bet on the price of a stock. They have drawn criticism for being opaque, in part because users are not actually trading the shares of a company, but rather a contract linked to those shares.

Regulators have examined the use of the contracts before when accusations of insider trading have arisen. In 2008, the British Financial Services Authority fined an investor for market abuse, saying the investor had used a contract-for-difference to profit from inside information on the Body Shop, a retailer. The person was making a bet in this case that the shares would fall in value.

Despite the focus on such complex products in the Heinz case, the S.E.C. is also examining more mundane activity in equity trades ahead of the deal.

Finra is helping the agency build its investigation. The group’s Office of Fraud Detection and Market Intelligence is coordinating with the S.E.C.

A Finra official declined to comment on Wednesday.

A version of this article appeared in print on 02/28/2013, on page B1 of the NewYork edition with the headline: Heinz Case May Involve A Side Bet In London.

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IHT Rendezvous: Eve Best Returns to the Globe, This Time as a Director

LONDON — The recent press conference announcing the 2013 season at Shakespeare’s Globe on one level seemed like variations on an ongoing theme.

A onetime Falstaff at this address, Roger Allam, is returning to open the season as Prospero in “The Tempest,” directed by Jeremy Herrin, while the perennial favorite, “A Midsummer Night’s Dream,” will be seen in May in a new staging, this time from the Globe’s artistic director, Dominic Dromgoole. The 2011 Olivier winner Michelle Terry (“Tribes”) will play Titania.

The international season that so galvanized the space for six weeks last spring will return in a greatly pared-down form, and there will be three new plays, including one, “Blue Stockings” by Jessica Swale, that tells of the first female students at Cambridge University.

But it’s the last in the trio of supernaturally charged Shakespeares that promises to break fresh theatrical ground. In what represents her first-ever stab (you’ll forgive the word in context) at directing, the much-laureled actress Eve Best will stage a new production in June of “Macbeth.” Joseph Millson and Samantha Spiro have signed on as the murderous couple at the play’s black, bleak heart.

What prompted one of the most accomplished stage performers of her generation (an actress with an Olivier Award and two Tony nominations) to make the shift? The answer was arrived at via a lengthy phone call to a remote island in Denmark, where Ms. Best, 41, is currently filming “Someone You Love” for the director Lars von Trier’s Zentropa production group. This film’s specific director is Pernille Fischer Christensen.

To hear Ms. Best describe it, she thought her time at the Globe was finished, at least for a while, following a triumphant 2011 production of “Much Ado About Nothing” in which she played Beatrice opposite Charles Edwards’s no less witty and scintillating Benedick. (That staging opened within days of a contrasting commercial production of the same play, with David Tennant and Catherine Tate, and trumped its starrier competitor hands down.)

“I love the Globe so much,” Ms. Best recalled, “and wanted any excuse to spend some time there, having played Beatrice which was just my most favorite part ever. But I did think I was sort of running out of parts to play for a little while until I get into the world of Cleopatra and those kinds of parts” — that’s to say, Shakespeare’s more senior women.

But all that was before Mr. Dromgoole surprised Ms. Best with an offer to take on the directing of the Shakespeare tragedy in which she had made her Globe debut in 2001, opposite Jasper Britton.

“I put myself forward to direct something thinking that they might say yes in a couple of years and that if they did say yes they might start me off with something light or something simpler or more obscure,” she said.

“I was not prepared for them to turn around and say, ‘Yes, all right, and what about “Macbeth?”’ Ms. Best continued, delight evident in her voice. “It took me back. My first response was: ‘Absolutely no way; you must be kidding!’”

The play is particularly challenging at the Globe. Open to the elements, the theater is a tricky fit for a text suffused with darkness, and it can be hard to focus the gathering intensity of the Macbeths’ toxic rise and fall.

“We are in the broad daylight and the open air,” Ms. Best acknowledged, “and that particular circular shape is certainly going to have a significant effect on the kind of production ours is. We can’t set it in the dark with candles, so we just have to embrace what it is that the Globe will give us: I’m very interested in just seeing the play as clearly as we possibly can and focusing on the human relationships within it.”

Mr. Dromgoole for his part said he thought Ms. Best would be able to meet the play head-on without lots of additional mumbo jumbo. “I wanted someone who I thought could just let [“Macbeth”] play itself rather than forcing it down a tunnel of darkness.”

As it happens, Ms. Best has firsthand knowledge of both central roles. In addition to acting Lady Macbeth at the Globe, she participated in workshops of the play in New York with the Scottish actor Alan Cumming in which she played the title role opposite Mr. Cumming’s Lady. Mr. Cumming is soon to open his own solo take on the play on Broadway.

(For those collecting “Macbeths,” the West End is now hosting the film actor James McAvoy in a modern-dress, gory, commendably visceral version. That one, at the Trafalgar Studios, will have finished roughly two months before Ms. Best’s begins.)

“What’s really lovely about this play — and all Shakespeare plays obviously — is that they are so magnificently and eminently flexible,” said Ms. Best, who was sounding in no way deterred by other productions arriving before hers. “They can encompass 6 or 8 or 10 productions all going on at the same time, all equally fascinating, all equally interesting, with all kinds of different approaches.”

Nor was she sounding spooked by a famously hexed play that has on occasion brought disaster in its wake. Whereas theater lore, for instance, often insists that those involved with this text refer to it as “the Scottish play,” Ms. Best was having none of that.

“I’ve been saying it like mad,” she said. “If we’re going to be working on it for two months, life’s too short to be worried.”

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AP Source: 49ers to send Smith to KC

Alex Smith is headed to Kansas City, the first major acquisition by the Chiefs since Andy Reid took over as coach.

A person with knowledge of the trade told The Associated Press on Wednesday that the Chiefs have agreed to deal for the 2005 top overall draft pick who lost his starting quarterback job in San Francisco to Colin Kaepernick last season.

The person spoke on condition of anonymity because the trade does not become official until March 12, when the NFL's new business year begins.

Another person familiar with the deal said the 49ers will get a second-round draft pick in April, No. 34 overall, and a conditional pick in the 2014 draft.

Fox Sports first reported the deal.

Smith sustained a concussion Nov. 11 and Kaepernick played well in his place. Coach Jim Harbaugh stuck with him even when Smith got healthy, and Kaepernick led the 49ers to the NFC championship and a close loss to Baltimore in the Super Bowl.

The 28-year-old Smith struggled for most of his career in San Francisco, plagued as much by coaching and coordinator changes as by his own indecisiveness. But when Harbaugh became coach, Smith blossomed. He was among the league leaders in passer rating (104.1) with a 70.2 completion percentage when he was injured in a 24-24 tie against St. Louis.

Smith never started again for the 49ers, but now will replace Matt Cassel in Kansas City.

The Chiefs went 2-14 in 2012, earning the top pick in April's draft. But with no standout quarterbacks coming out of college this year, they quickly turned to finding a veteran.

Reid was fired by Philadelphia after 14 highly successful seasons, although the Eagles went 4-12 last year. Kansas City made him the first coach hired to fill a vacancy in January — there were eight of them — and the Chiefs also fired general manager Scott Pioli.

Now Reid has found his quarterback, and Smith has found another starting job.

Kansas City also has Brady Quinn on the roster, and he started eight games last season, going 1-7.

The 49ers, meanwhile, will be searching for a veteran to back up Kaepernick, their second-round draft choice in 2011.

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Personal Health: Too Many Pills in Pregnancy

The thalidomide disaster of the early 1960s left thousands of babies with deformed limbs because their mothers innocently took a sleeping pill thought to be safe during pregnancy,

In its well-publicized wake, countless pregnant women avoided all medications, fearing that any drug they took could jeopardize their babies’ development.

I was terrified in December 1968 when, during the first weeks of my pregnancy, I developed double pneumonia and was treated with antibiotics and codeine. Before swallowing a single dose, I called my obstetrician, who told me to take what was prescribed, “reassuring” me that if I died of pneumonia I wouldn’t have a baby at all.

In the decades that followed, pregnancy-related hazards were linked to many medicinal substances: prescription and over-the-counter drugs and herbal remedies, as well as abused drugs and even some vitamins.

Now, however, the latest findings about drug use during pregnancy have ignited new concerns among experts who monitor the effects of medications on the developing fetus and pregnancy itself.

During the last 30 years, use of prescription drugs during the first trimester of pregnancy, when fetal organs are forming, has grown by more than 60 percent.

About 90 percent of pregnant women take at least one medication, and 70 percent take at least one prescription drug, according to the Centers for Disease Control and Prevention.

Since the late 1970s, the proportion of pregnant women taking four or more medications has more than doubled.

Nearly one woman in 10 takes an herbal remedy during the first trimester.

A growing number of pregnant women, naïvely assuming safety, self-medicate with over-the-counter drugs that were once sold only by prescription.

While many commonly taken medications are considered safe for unborn babies, the Food and Drug Administration estimates that 10 percent or more of birth defects result from medications taken during pregnancy. “We seem to have forgotten as a society that drugs pose risks,” Dr. Allen A. Mitchell, professor of epidemiology and pediatrics at Boston University Schools of Public Health and Medicine, said in an interview. “Many over-the-counter drugs were grandfathered in with no studies of their possible effects during pregnancy.”

Medical progress has contributed to the rising use of medications during pregnancy, Dr. Mitchell said. Various conditions, like depression, are now recognized as diseases that warrant treatment; drugs have been developed to treat conditions for which no treatment was previously available, and some conditions, like Type 2 diabetes and hypertension, have become more prevalent.

Misled by the Web

Now a new concern has surfaced: Bypassing their doctors, more and more women are using the Internet to determine whether the medication they are taking or are about to take is safe for an unborn baby.

A study, published online last month in Pharmacoepidemiology and Drug Safety, of so-called “safe lists for medications in pregnancy” found at 25 Web sites revealed glaring inconsistencies and sometimes false reassurances or alarms based on “inadequate evidence.”

The report was prepared by Cheryl S. Broussard of the Centers for Disease Control and Prevention with co-authors from Emory, Georgia State University, the University of British Columbia and the Food and Drug Administration.

“Among medications approved for use in the U.S.A. from 2000 to 2010, over 79% had no published human data on which to assess teratogenic risk (potential to cause birth defects), and 98% had insufficient published data to characterize such risk,” the authors wrote.

But that did not stop the 25 Web sites from characterizing 245 medications as “safe” for use by pregnant women, which “might encourage use of medications during pregnancy even when they are not necessary,” the authors suggested.

Furthermore, the information found online was sometimes contradictory. “Twenty-two of the products listed as safe by one or more sites were stated not to be safe by one or more of the other sites,” the study found.

The question of timing was often ignored. A drug that could interfere with fetal organ development might be safe to take later in pregnancy. Or one (for example, ibuprofen) that is safe early in pregnancy could become a hazard later if it raises the risk of excessive bleeding or premature delivery.

Fewer than half the sites advised taking medication only when necessary, and only 13 sites encouraged pregnant women to consult their doctors before stopping or starting a medication.

Doctors, too, are often poorly informed about pregnancy-related hazards of various medications, the authors noted. One woman I know was advised to wean off an antidepressant before she became pregnant, but another was told to continue taking the same drug throughout her pregnancy.

“In many instances the best bet is for mom to stay on her medication,” said Dr. Siobhan M. Dolan, an obstetrician and geneticist at Albert Einstein College of Medicine. She said that if a woman is depressed during pregnancy, her risk of postpartum depression is greater and she may have difficulty bonding with her baby.

Dr. Dolan, who is author, with Alice Lesch Kelly, of the March of Dimes’ newest book, “Healthy Mom Healthy Baby,” emphasized the importance of weighing benefits and risks in deciding whether to take medication during pregnancy and which drugs to take.

“In anticipation of pregnancy, a woman taking more than one drug to treat her condition should try to get down to a single agent,” Dr. Dolan said in an interview. “Of the various medications available to treat a condition, is there a best choice — one least likely to cause a problem for either the baby or the mother?”

She cautioned against sharing medications prescribed for someone else and assuming that a remedy labeled “natural” or “herbal” is safe. Virtually none have been tested for safety in pregnancy.

Among medications a woman should be certain to avoid, in some cases starting three months before becoming pregnant, are isotretinoin (Accutane and others) for acne; valproic acid for seizure disorders; lithium for bipolar disorder; tetracycline for infections, and angiotensin-converting enzyme (ACE) inhibitors and angiotensin receptor antagonists for hypertension, Dr. Dolan said.

“Many medications that are not recommended during pregnancy can be replaced with low-risk alternatives,” she wrote.

Dr. Broussard, who did the “safe lists” study, said in an interview, “We’ve heard about women seeing medications on these lists and deciding on their own that it’s O.K. to take them. “Women who are pregnant or even thinking about getting pregnant should talk directly to their doctors before taking anything. They should be sure they’re taking only what’s necessary for their health condition.”

A reliable online resource for both women and their doctors, Dr. Mitchell said, are fact sheets prepared by OTIS, the Organization of Teratology Information Specialists, which are continually updated as new facts become available: http://www.otispregnancy.org.

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Shell Suspends Drilling for Arctic Ocean in 2013

ANCHORAGE, Alaska (AP) — Royal Dutch Shell PLC announced Wednesday it will not drill for petroleum in the Arctic Ocean in 2013.

Shell Oil Co. President Marvin Odum said in an announcement that the company will "pause" its exploration drilling in the Chukchi and Beaufort seas.

The company made progress in Alaska, but Arctic offshore drilling is a long-term program that the company is pursuing in a safe and measured way, Odum said.

In 2012, Shell drilled top holes on two wells in the Beaufort and Chukchi, but drilling was hampered by problems.

Shell has experienced setbacks this winter with both its drill ship, the Noble Discoverer, and the drilling barge Kulluk.

After summer exploration in the Beaufort Sea, the Kulluk ran aground on New Year's Eve near Kodiak Island as it was being towed to Seattle for maintenance and broke free in a storm. It was refloated and taken to a sheltered harbor for further inspection.

It's currently being towed to Dutch Harbor, where it will be prepared for a dry tow transport to Asia.

The Noble Discoverer operated in the Chukchi Sea.

But the Coast Guard found 16 violations after the drilling season when the Noble Discoverer was in dock in Seward, Alaska.

The Coast Guard said last week that it's turned its investigation of this ship over to the U.S. Department of Justice.

Several investigations and reviews of the 2012 Arctic offshore drilling season are under way.

Interior Secretary Ken Salazar has announced that his department would perform an "expedited, high-level assessment" of the summer drilling season.

Salazar said the review would pay special attention to challenges that Shell encountered with the Kulluk, with the Discoverer and with the company's oil spill response barge, which could not obtain certification in time for the drilling season.

Salazar announced the 60-day review shortly after the Coast Guard commander overseeing the Alaska district said he had ordered a formal marine casualty investigation of the Kulluk.

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IHT Rendezvous: Memories of Floating Over Luxor, Now Tinged With the Macabre

My 5-year-old son spent the entire hot-air balloon ride over Luxor crouched in the bottom of the basket, terrified of the flames that kept shooting into the balloon—the flames that produced the hot air that kept us afloat. He missed the glorious views: of the ancient ruins and the quilts of green grass, of the magnificent sunrise and the dancing shadows it created out of the dozens of other hot-air balloons with which we shared the early-morning sky.

We had hardly thought about danger when we booked the ride, a staple of Luxor vacations, worrying only about whether it would be worth the $240 pricetag for our family of four—and the 4:40 a.m. wake-up call. Less than two months later, with Tuesday’s horrific headlines about a crash on one of those very balloons that killed at least 18, it seems my son may have been on to something.

This is not my first there-but-for-the-grace experience. Days after I went skydiving in the Chicago suburbs to celebrate a friend’s 40th birthday, I read that a skydiver who crash-landed into a lake we had flown over had drowned. While covering the small-plane crash that killed Senator Paul Wellstone of Minnesota in 2002, I discovered that the day I had spent with him three weeks earlier was on the very same King Air A-100.

Skydiving and small-plane rides in rural areas are known risks. But a fatal hot-air balloon ride? Did not occur to me. (Maybe it’s that tourist mentality: I never inquired about whether the camels we rode through back roads and villages were insured, either.)

Before this morning, the balloon ride was easily one of the best memories of our weeklong adventure in Luxor and Cairo over New Year’s.

It did not begin well: The hotel failed to make that 4:40 a.m. wake-up call, and we were hopelessly late. That meant we kept a literal boatload of Chinese tourists waiting to cross the Nile. Aboard the rickety wooden boat there was instant coffee, tea, and, oddly, Twinkies. On the other side, we were shuttled in vans to the open field where these huge, colorful balloons were in various stages of life—some lying limp on the ground, others half-filled, some taking flight.

My twins hoped for one of the multicolored balloons, but we ended up in red. Some 20 strangers joined us in the basket, where the kids were just the right height to peer out of the footholds we had used to climb in. My daughter peeked; my son cowered. The blue flames roared, and we were
airborne.

The ride lasted perhaps a half-hour, each minute offering a landscape transformed by the relative height of our balloon, the others, and the emerging sun. It was remarkable, if was not quite peaceful — there were those loud, hot flames shooting up a few feet away every few seconds. It was flames like those that, for the doomed balloon, ignited the stream from a ripped gas hose at landing, sending it bouncing back into the air to explode.

For us, on Dec. 31, the landing was smooth. Once on the ground, each rider was given a signed certificate commemorating the flight. (We passed on the offers to purchase
photographs or video.)

My daughter excitedly pasted her certificate into the vacation journal she was keeping for kindergarten. Now that seems like a macabre piece of memorabilia. We will be waiting a long time to tell our children the postscript to our adventure.

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Marlins owner says he didn't renege on promises

JUPITER, Fla. (AP) — A cluster of media stood outside the Miami Marlins clubhouse, awaiting the arrival of owner Jeffrey Loria, when outfielder Bryan Petersen walked past.

"Somebody getting married?" Petersen said.

It was more like somebody trying to salvage a relationship. Loria's three-day public relations campaign to patch things up with angry fans brought him to spring training Tuesday for an interview session that included several testy exchanges before the owner cut it short.

Loria reiterated many of his previous comments regarding the 2012 payroll purge, saying it wasn't about money but about improving the farm system. Ten minutes into the news conference, he bristled when asked why fans should believe him.

"You've said that question in four different ways," Loria said. "My response to you is we have put together some championship-caliber players. We're going to field an excellent team in the next two or three years that you're going to be proud of."

Fans are upset that after only one season of big spending in a new ballpark built mostly with tax money, the Marlins have reverted to their tight budgets of the past. Loria was asked about trying to change the impression the ballpark project was "a con job."

"A con job? I'm not even going to answer that," Loria said.

Many project the Marlins to lose 100 games only a year after they were the talk of baseball and touted as playoff contenders. This year's payroll is expected to be less than $45 million, compared with $90 million in 2012.

Loria denied he reneged on any promise, noting the Marlins finished last in the NL East with their biggest payroll ever.

"I fulfilled my promise in the new ballpark last year," he said. "It didn't work. So what do you do? Go back again and lose more games? We needed to do something to beef up the organization."

A blockbuster trade in November sent to Toronto three of the Marlins' highest-paid players — shortstop Jose Reyes and pitchers Mark Buehrle and Josh Johnson. In exchange Miami acquired mostly prospects.

"We have some very exciting young players here," Loria said. "We need to bring them along and develop our own stars, or else we're going to be a last-place team forever."

As he stepped away from the TV cameras after 15 minutes, a PR aide said the owner would take more questions. Instead, Loria disappeared through a clubhouse door and didn't return.

At some point the team's play will have to speak for itself.

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