Fast-food ad ban could cut child obesity: U.S. study

WASHINGTON (Reuters) - Banning fast-food advertising on television in the United States could reduce the number of overweight children by as much as 18 percent, researchers said on Wednesday.

But the team at the National Bureau of Economic Research questioned whether it would be practical to impose that kind of government regulation -- something only Sweden, Norway and Finland have done.

"We have known for some time that childhood obesity has gripped our culture, but little empirical research has been done that identifies television advertising as a possible cause," said economist Shin-Yi Chou of Lehigh University in Pennsylvania.

"Hopefully, this line of research can lead to a serious discussion about the type of policies that can curb America's obesity epidemic."

For their study, funded in part by the federal government, Chou and colleagues used data on nearly 13,000 children from the 1979 Child-Young Adult National Longitudinal Survey of Youth and the 1997 National Longitudinal Survey of Youth, both issued by the U.S. Department of Labor.

"The advertising measure used is the number of hours of spot television fast-food restaurant advertising messages seen per week," they wrote in the Journal of Law and Economics.

"Our results indicate that a ban on these advertisements would reduce the number of overweight children ages 3-11 in a fixed population by 18 percent and would reduce the number of overweight adolescents ages 12-18 by 14 percent."

The U.S. Centers for Disease Control and Prevention estimates that 13.9 percent of children aged 2 to 5 are overweight, 18.8 percent of those aged 6 to 11 are and more than 17 percent of those 12 to 19.

The percentages have been steadily rising.

Television watching is also known to raise obesity rates, both because children exercise less and because it can interfere with sleep.

The Institute of Medicine reported in 2006 that there was compelling evidence linking food advertising on television and increased childhood obesity.

One study suggested that children viewed an average of about 20,000 commercials aired on television per year in the late 1970s, rising to 30,000 per year in the late 1980s and more than 40,000 per year in the late 1990s.

Walking house takes a stroll

Nov 20 - A walking house designed by Danish art collective N55 explores nomadic living in the 21st century.



Donna Lynas, Director of Wysing Arts Centre in the UK which commissioned the project says the house is inspired by a utopian idea of the future where the whole world would be free to roam. The Cambridgeshire-based centre has explored ideas of neighbourliness and lifestyles in a series of projects called 'Communities Under Construction.'

- Reuters

Jobs data miserable, regional factories slump

NEW YORK (Reuters) - The number of American workers on the unemployment rolls surged to the highest in a quarter century and a regional manufacturing gauge slumped as U.S. economic misery intensified.

The reports on Thursday were the latest in a growing body of evidence that shows the United States has probably entered one of the worst downturns in decades, while economists expect the world's leading economies to be in recession for about a year.

The number of U.S. workers filing new claims for jobless benefits jumped last week to their highest level in 16 years, Labor Department data showed, suggesting next month's jobs data will add to the 1.2 million jobs already eliminated this year.

"No rest for the weary," said Carl Lantz, U.S. interest rate strategist at Credit Suisse in New York.

"It looks like we'll have another ugly payroll number in December."

Worse yet, the number of workers remaining on jobless benefits, or continuing claims, were the highest since December 1982, rising to 4.012 million in the week ended November 8, the latest data available, from 3.903 million the prior week.

An index of factory conditions in the U.S. Mid-Atlantic region fell to another 18-year low in November, a survey showed.

The Philadelphia Federal Reserve Bank said its business activity index fell to minus 39.3 from minus 37.5 in October. Any reading below zero indicates contraction in the region's manufacturing sector.

A key measure of inflation in the survey, the prices paid index, fell to its lowest since the survey's launch in 1968.

This gives the Federal Reserve leeway to fight the economic downturn by keeping rates low but could also heighten concerns that the U.S. may enter a destructive deflationary spiral, especially after data on Wednesday showed consumer prices fell at a record pace in October.

On Wall Street, U.S. stocks extended earlier losses after the weaker-than-expected Philadelphia Fed survey, though they later edged higher.

Government bonds, which benefit from signs of economic weakness, tested earlier session highs. The dollar edged up against the euro but remained sharply weaker versus yen.

Initial claims for state unemployment insurance benefits were a seasonally adjusted 542,000 in the week ended November 15 from a revised 515,000 the previous week, the Labor Department said.

That was higher than analysts' forecast for a reading of 505,000 new claims.

The four-week moving average of new jobless claims, a better gauge of underlying labor trends because it irons out week-to-week volatility, rose to 506,500 from 490,750 the week before, the highest since the start of 1983.

The U.S. Conference Board's index of Leading Economic Indicators fell more than expected in October, as stock prices dropped and consumer expectations weakened, the research group said on Thursday.

The index fell 0.8 percent to 99.6 after rising by a revised 0.1 percent in September.

"The economy is contracting, and the pace of contraction may intensify over the next few months," said Ken Goldstein, economist at the Conference Board.

Citi, JPMorgan, Capital One bid for Chevy Chase: sources

NEW YORK (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz), JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and Capital One Financial Corp (COF.N: Quote, Profile, Research, Stock Buzz) are among the final bidders for Chevy Chase Bank, a Bethesda, Maryland, lender, sources familiar with the matter said.

Other banks that looked at Chevy Chase include SunTrust Banks Inc (STI.N: Quote, Profile, Research, Stock Buzz) and BB&T Corp (BBT.N: Quote, Profile, Research, Stock Buzz), one source said.

The bids come as the largest U.S. banks turn their attention to expanding branch networks and amassing pools of low-cost retail deposits after seeing how unreliable capital markets can be when times are tough.

This strategy has already been put into play by JPMorgan, which snapped up banking assets of Washington Mutual Inc (WAMUQ.PK: Quote, Profile, Research, Stock Buzz) from the FDIC for $1.9 billion, and by Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz), which trumped a low-ball Citigroup bid to take over East Coast banking giant Wachovia Corp (WB.N: Quote, Profile, Research, Stock Buzz).

Even securities giants Goldman Sachs group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) have become banks and joined the hunt for deposits.

Chevy Chase has $11.4 billion of deposits and 292 branches, according to the Federal Deposit Insurance Corp website.

"The key thing with that bank is that the asset side is not very attractive, but the deposit side is incredibly valuable because it is in Washington, D.C.," the source said.

Chevy Chase was founded in 1969 by Chairman and Chief Executive B. Francis Saul II. It opened its first branch in a trailer on Connecticut Avenue in Chevy Chase, Maryland.

Citi, JPMorgan and SunTrust declined to comment. BB&T, Capital One and Chevy Chase were not immediately available.

GM shares hit 70-year low as quick bailout hopes dim

DETROIT (Reuters) - Shares of General Motors Corp tumbled as much as 39 percent to hit a 70-year low on Thursday as prospects dimmed that lawmakers would reach a compromise on a proposed $25 billion bailout for U.S. automakers before Congress adjourns this week.

Shares of Ford Motor Co hit their lowest level in more than 26 years, and auto parts supplier stocks declined across the board amid concerns a failure by one of the U.S. automakers would touch off a cascade of failures in the struggling industry.

"We're still analyzing the situation, but the feeling is that without a loan package, the probability of GM or Chrysler going bankrupt in early 2009 is extremely high, at about 75 percent," said George Magliano, a forecasting director at influential auto industry tracking firm Global Insight.

Even with a government bailout, Magliano said he saw a 25 percent change of bankruptcy for either automaker amid the credit crisis that has pushed U.S. auto sales to 25-year lows.

Shares of GM were down 19 percent, or 53 cents, to $2.26 on the New York Stock Exchange, after falling earlier in the session to $1.70, their lowest level since 1938.

Shares of Ford fell 9 percent, or 10 cents to $1.16. The stock fell as low as $1.02.

Without a deal this week, any bailout would likely have to wait until the Obama administration takes over in January. By that time, GM has warned, it would run desperately short of its minimum cash needs.

Failure to craft a deal carries the risk that one or more of the U.S. automakers -- GM, Ford or Chrysler LLC -- could be forced into bankruptcy, analysts have warned.

Citigroup analyst Itay Michaeli said little progress appears to have been made to break the stalemate in the Senate over the mechanics of sourcing a $25 billion loan package. Any government actions to provide bridge loans are not expected to entirely solve GM's liquidity outlook through 2009, he added.

"We remain concerned that failure to obtain liquidity through this session may contribute to stakeholder perceptions that Detroit's liquidity options are dwindling, which in itself could increase the risk of a working capital driven liquidity crunch," Michaeli said in a research note.

Chances dimmed that a last-minute plan being crafted by Republican U.S. Senators, with White House support, to provide $25 billion to bail out U.S. automakers would receive enough backing from Democrats to pass before the end of this week.

The White House repeated Thursday it favors using $25 billion in loans already authorized and appropriated to help the industry retool plants and meet new fuel economy mandates versus a proposal by Democrats to provide automakers with another $25 billion out of the $700 billion financial rescue package.

Suppliers took a hit from the automakers' woes, with TRW Automotive Holdings Corp tumbling 21 percent to $2.11 and Lear Corp shedding 24 percent to 87 cents.

Separately, GM's long bonds fell to 14 cents on the dollar after hitting a record low of 12 cents earlier Thursday.

JPMorgan cuts investment banking jobs: sources

NEW YORK (Reuters) - JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) is cutting about 10 percent of its investment banking staff as the credit crunch and slowdown in the economy bite into bank earnings, people familiar with the situation said on Thursday.

The company will likely cut staff in line with competitors such as Goldman Sachs Group (GS.N: Quote, Profile, Research, Stock Buzz), which is cutting 10 percent, the sources said.

On Thursday, JPMorgan let go at least six equity sales officials from its New York desk, according to one person familiar with the matter.

The bank declined comment.

The company's investment bank has just under 31,000 employees, an increase of about 20 percent compared with the same quarter a year ago, according to a third-quarter regulatory filing.

JPMorgan took on about 6,000 staff from nearly insolvent Bear Stearns Cos in March and has also added about 40,000 staff through its acquisition of failed thrift Washington Mutual Inc (WAMUQ.PK: Quote, Profile, Research, Stock Buzz), according to its third-quarter earnings statement.

The bank's total head count was 228,452 at the end of September.

JPMorgan is seen as one of the Wall Street survivors of the credit crunch. It has not had to make the severe write-downs on mortgage-related assets that other banks have reported because it has limited exposure to the riskier classes of mortgages, such as subprime loans.

But in recent calls with investors and analysts, Jamie Dimon, chief executive, has been warning investors about possible losses to come from the bank's exposure to consumer debt.

At a conference two weeks ago, Dimon said the wider economic downturn could be worse for banks like JPMorgan than the credit crisis that has restricted financial markets over the last year.

This is because the bank has about $250 billion of prime mortgages and home equity loans and the bank is beginning to see customers miss payments on these loans. It has announced a plan to renegotiate about $70 billion in mortgages over the next two years to help these customers.

The company's shares slipped 10 percent to $25.54 on Thursday.

Pakistan protests over U.S. missile strikes

ISLAMABAD (Reuters) - Pakistan summoned U.S. ambassador Anne Patterson on Thursday to protest over missile strikes launched by pilotless drone aircraft against militant targets in Pakistan.

The protest came a day after a suspected U.S. missile strike on Pakistani soil killed five militants, possibly including an Arab al Qaeda operative.

There have been at least 20 strikes in the last three months, reflecting U.S. impatience over militants from Pakistan fueling the Taliban insurgency in Afghanistan and fears that al Qaeda fighters in northwest Pakistan could plan attacks in the West.

Pakistan says the attacks violate its sovereignty, undermine efforts to win public support for the fight against militancy, and make it harder to justify the U.S. alliance.

Wednesday's attack on Bannu district was unusual in that it took place deeper in Pakistani territory, in an area outside the semi-autonomous tribal lands bordering Afghanistan where most other attacks have focused.

Foreign Secretary Salman Bashir lodged "a strong protest" over the "two missiles fired by U.S. drones on a residential compound in Bannu district," a foreign ministry statement said.

Bashir "stressed that these attacks must be stopped."

An embassy spokeswoman confirmed the ambassador had been summoned and said any message from the Pakistani government would be conveyed to Washington, without elaborating further.

Speaking in the National Assembly, Prime Minister Yousaf Raza Gilani called the missile attacks "intolerable" and voiced hope President-elect Barack Obama's government would show more restraint.

"These kinds of acts are counter-productive ... it adds to our problems," Gilani said, adding he was sure when "Obama's government is formed, these attacks will be controlled."

A diplomatic storm blew up in September after a U.S. commando raid, and there has been no incursion by ground troops since.

Addressing NATO's military committee in Brussels on Wednesday Army Chief General Ashfaq Kayani also urged a halt to the use of unmanned "combat aerial vehicles within Pakistani territory."

Kayani met NATO Secretary-General Jaap de Hoop Scheffer, and held meetings with Admiral Michael Mullen, U.S. chairman of the joint chiefs of staff, and a French defense chief.

Earlier this week, the Foreign Ministry denied Pakistan had a secret agreement with Washington to publicly protest the attacks, while privately acquiescing.

Missile-armed drones are primarily used by U.S. forces in the region. The United States seldom confirms drone attacks. Pakistan does not have any combat drones.

The Arab killed in the attack in Bannu was identified by a Pakistani intelligence officer as Abdullah Azam al-Saudi. Bannu district in North West Frontier Province lies at the gateway to North Waziristan, a hotbed of Taliban and al Qaeda support.

The officer, based in neighboring Dera Ismail Khan district, described al-Saudi as a coordinator between al Qaeda and the Taliban in Pakistan.

The officer requested anonymity due to the sensitivity of the subject. There was no other corroboration of al-Saudi's death.

Taliban fighters cordoned off the area around the destroyed house, but photographers took pictures of young boys holding pieces of the missile that destroyed it.

The Pakistani Taliban, in a statement issued after a meeting of commanders in North Waziristan, threatened revenge attacks outside the tribal lands if missile attacks continued.

"OPERATION LIONHEART"

While the row over missile strikes simmered, NATO's spokesman in Kabul, Brigadier General Richard Blanchette, said coordination with Pakistan has been improving.

Pakistani forces are battling Islamist fighters in other parts of northwest Pakistan, notably Bajaur, a region at the other end of the tribal belt from Waziristan, and Swat valley.

A spokesman for Pakistan's paramilitary forces said on Thursday that 24 al Qaeda-linked militants, including 11 foreigners, had been killed as the military used artillery and jet fighters in support of the ground troops.

The military says more than 1,500 militants have been killed in Bajaur since August while 73 soldiers have also died, though independent casualty estimates are unavailable.

Western forces in Afghanistan have launched "Operation Lionheart" to put pressure on the border with Bajaur, to bottle up insurgents where they can be attacked, Blanchette said.