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Stocks ease on earnings results

Written By kolimtiga on Jumat, 25 Juli 2014 | 22.25

The stock market sank in early trading Friday after Visa and Amazon posted weaker results than Wall Street expected. If the declines continue, the market would erase almost all of its gains from earlier in the week.

The stock market sank in morning trading Friday after Visa and Amazon posted weaker results than Wall Street expected. If the declines continue, the market would erase almost all of its gains from earlier in the week.

KEEPING SCORE: The Dow Jones industrial average lost 117 points, 0.7 percent, to 16,966 as of 11 a.m. Eastern time. The Standard & Poor's 500 index fell seven points, or 0.4 percent, to 1,981 and the Nasdaq composite dropped 24 points, or 0.5 percent, to 4,447.

For the week, the S&P 500 is down fractionally, 0.02 percent, and the Dow is off 0.9 percent.

MISSED: Amazon's stock slumped 11 percent after the online retail giant posted a much wider loss than analysts had forecast, hit by expenses. The Seattle-based company is focused on spending the money it makes to expand into new areas and products, including a smartphone, the Fire, which starts selling Friday. Amazon was down $40.60 to $318 in early trading.

NOT EVERYWHERE: Dow member Visa fell $11, or 5 percent, to $212.98. The credit card processing giant said profits rose 11 percent from a year earlier, but the company cut back its full-year forecast on concerns about growth overseas. Visa is a closely watched company because of its heavy exposure to U.S. and global consumer spending.

`COMPLACENCY': "I continue to see the level of complacency in the (stock) market to be unnerving, to be honest," Scott Clemons, chief investment strategist at Brown Brothers Harriman, which manages $25 billion in assets for private investors. "All of this geopolitical tension, the market trading near all-time highs, I think the market is at a critical state right now."

Clemons said he doesn't believe the market is poised for a major sell-off, but instead thinks investors should brace for more volatility and more heavy-handed reaction to disappointing earnings or data, like Friday's Amazon and Visa results.

THE GOODS: Orders for long-lasting manufactured goods rebounded in June, helped by rising demand for commercial aircraft and machinery. The Commerce Department said that orders for durable goods rose 0.7 percent last month, which is what economists expected. Economists expect activity will pick up in the latter half of the year.

BONDS AND OIL: The yield on the 10-year Treasury note eased to 2.48 percent from 2.50 percent late Thursday. Bond yields fall when prices rise. Benchmark U.S. crude oil fell 55 cents to $101.51 a barrel on the New York Mercantile Exchange

Copyright © 2014, Los Angeles Times
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Seattle Seahawks' Marshawn Lynch expected to hold out of training camp

The usually reserved Seattle running back Marshawn Lynch is planning on making a big statement Friday by not attending the first day of the Seahawks' training camp, according to one of his former teammates.

Lynch, 28, is set to make $5.5 million this season with the reigning Super Bowl champions, but he wants a bigger contract and he's going hold out, retired ex-Seahawk Michael Robinson told NFL Network on Thursday.

If he does hold out, it could cost the downhill runner also known as "Beast Mode" $30,000 a day in fines for each day of camp he misses.

During the off-season the Seahawks gave cornerback Richard Sherman and safety Earl Thomas big new contracts this off-season worth $57.4 and $40 million, respectively. Now, Lynch wants his due.

Last season, Lynch carried the ball 301 times for 1,257 yards and 12 touchdowns. He also caught 36 passes for 316 yards and two scores.

Then he rushed for another 288 yards and four scores during the Seahawks' playoff run to the championship.

Lynch sat out during Seattle's mandatory minicamp with an ankle issue and skipped OTAs completely, but that's all sort of part of the Seahawks' plan for the bruising back.

"We have rested him a lot in the off-season. He takes a big pounding during the year. It takes him a long time to get his body back to where he doesn't feel the rigors of the season that's past," Seahawks Coach Pete Carroll said in June, according to the Associated Press. "In this case it's unique but he is a unique player and he has a unique role on our football team, so we have to do what we have to do to take care of him."

Behind Lynch on the depth chart is Robert Turbin and Christine Michael. Turbin is entering into his third year out of Utah State and Michael is entering his second season out of Texas A&M.

Both backs saw minimal action last season as Lynch took the lion's share of carries.

Copyright © 2014, Los Angeles Times
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Brazil makes contact with members of isolated tribe in Amazon

The government says that it has had a rare contact with members of one of a few isolated indigenous tribes along the border with Peru in the Amazon region, and that the group has suffered violent attacks and exposure to disease.

The Amazon region, especially in Brazil, is home to tribes that live by hunting and gathering and have never made significant contact with wider society. There are believed to be four such tribes in the Brazilian border region and two on the Peru side.

The group of seven people, who speak what is believed to be a language of the Pano linguistic group, crossed into western Brazil from Peru in June and made contact with another indigenous settlement, which notified the Brazilian government, said Brazil's National Indian Foundation, or FUNAI. The government sent out a team of interpreters to find out what had happened.

FUNAI said in a statement this week that members of the tribe had contracted the flu and were treated at a government outpost deep in the Amazon before returning home. "In talks conducted with the group through interpreters, they said they had suffered acts of violence carried out by non-indigenous peoples at the head of the Envira River in Peru," it said.

Brazil's Amazon region is thought to be home to as many as 77 such isolated groups. This was the first significant contact with any isolated tribe since 1996, when FUNAI made contact with members of the Korubo tribe in an area to the north, the foundation said.

FUNAI has a policy of avoiding unwanted contact and preserving the land rights of indigenous groups. The suggestion that violence and disease in these fragile communities recently forced them off of their land and into contact with authorities, is troubling, indigenous rights groups say.

It's extremely rare for the tribes to move into other groups' land unless there is serious trouble, said Fiona Watson, research director at Survival International, an indigenous rights organization.

"This is extremely worrying," said Watson, who added that her group had found evidence of logging, coca cultivation and drug trafficking near the indigenous-occupied region on the Peruvian side of the border.

"The most immediate question is of the flu. People who have had no contact for so long have no immunity to things like the flu or the common cold, and we know from past experience that it wasn't uncommon after forced contact for half of the tribe to die," she said.

"Something pushed them into this contact," Watson said. "They said, or were able to show, that they had been shot at with firearms. Are there others that are being killed? That's quite likely. These peoples have bow and arrows to defend themselves against heavily armed peoples."

In 2010, FUNAI photographed some of the uncontacted peoples in a flyover to prove their existence and pressure the governments of Brazil and Peru to respect the inhabitants' territories. The images showed a seemingly healthy and harmonious community. When members saw the aircraft, they daubed on red paint and grabbed their bows and arrows.

The individuals who made contact over the last month are not believed to be the ones in the photographs. There are an estimated 600 people in the tribal groups on the Brazilian side of the border.

In Peru and Brazil, indigenous communities have rights, but they are often violated by farmers or other landowners who plunder the groups' land or expel them.

Bevins is a special correspondent.

Copyright © 2014, Los Angeles Times
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Lakers unlikely to pay luxury tax for 2014-15 season

After paying $9 million in luxury-tax penalties last year, the Lakers are unlikely to pay any tax for the 2014-15 season.

The Lakers have been one of the league's heaviest taxpayers, penalized each of the last seven years for the franchise's expensive payroll.

With the recent signings of Jordan Hill and Ed Davis, the Lakers have reached a total of $65.4 million in committed salaries for the coming year.

The Lakers are officially 10 players deep with Kobe Bryant, Steve Nash, Jeremy Lin, Carlos Boozer, Robert Sacre, Nick Young, Julius Randle, Ryan Kelly, Hill and Davis.

Additionally, the franchise has reached verbal agreements with forwards Wesley Johnson and Xavier Henry on one-year, minimum deals. Though they'll both count as $915,243 on the team's books, they'll actually receive $981,084. If a player has been in the NBA three or more seasons and is playing under a one-year minimum-salary contract, the league provides reimbursement for part of his salary -- any amount above the minimum salary level for a two-year veteran, in this case any amount over $915,243.

The Lakers are also likely to sign rookie Jordan Clarkson (46th overall pick), presumably at a minimum salary of $507,336.

That would put the Lakers at $67.7 million in total salary for 13 players. The franchise may bring as many as 20 to camp, but the maximum for the regular-season roster is 15.

All the Lakers have, outside of minimum contracts, is the remainder of their $1.08 million "room exception," most of which was spent on Kelly. That amount is actually less than the minimum for players with at least six years experience in the league.

With limited means to boost salary, Lakers may not be able to near the tax line of $76.8 million this season.

Dating back to the 2002-03 season, the Lakers have paid about $122.7 in luxury-tax payments.

Email Eric Pincus at eric.pincus@gmail.com and follow him on Twitter @EricPincus

Copyright © 2014, Los Angeles Times
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State sees surge in high-paying white-collar jobs

One of the fastest-growing employment sectors in California is also among the highest paying.

Professional services jobs — engineers, architects, lawyers, accountants and consultants — are growing in California at more than twice the rate of overall employment since the recession ended in 2009, according to an analysis of state economic data.

That's faster than both the healthcare and hospitality industries, two other high-growth segments of the labor market.

"This is where we want the jobs," said Christopher Thornberg, founding partner at Beacon Economics, who specializes in the California economy. "These are high-skilled, high-paid jobs."

Professional services firms are crucial for local economies because they tend to serve clients across the nation and the world, economists say. That brings outside money into the region, driving further expansion and more local spending.

"If we want the pie to get bigger, we want to see growth happening in these parts of the economy," said Robert Kleinhenz, chief economist with the Los Angeles County Economic Development Corp.

Overall, California has been adding jobs faster than all but five states in the last three years.

But economists caution that much of the growth has been clustered at either the high or low ends of the income scale.

The high-end professional services industry has grown 17% since the recession, compared with 8% growth in overall employment.

During the recession, many companies held off on upgrades for internal accounting or IT systems, said Cyndi Karapogosian, a senior regional vice president in Southern California for Robert Half International, a major staffing agency.

With an improving economy, she said she has seen incredible demand for experienced accountants and database managers as executives feel more comfortable expanding operations.

"Companies that hadn't invested in the past or held on to their capital expenditures are now loosening the purse strings," she said.

The professional services segment now accounts for 8% of the state's total workforce, up from 6% a decade ago.

By comparison, the lower-paying leisure and hospitality sector is responsible for about 11% of the state's nonfarm workers. Healthcare makes up 13% of the state's workforce.

The competition is stiff for skilled job candidates, Karapogosian said. A year ago, it might have taken two to three weeks for top talent to find a match; now, good prospects are being snapped up within days, she said.

"The shelf life of really good candidates has shifted quite a bit," Karapagosian said.

Compensation for professional and technical services workers tends to be much higher than in the state's other fast-growing job categories. In California last year, average weekly pay for the sector was $1,878 — more than twice the weekly pay of $889 in healthcare and nearly four times as much as the pay of $481 in the leisure and hospitality sector.

And those wages are rising. Since 2010, professional and technical services workers got a 7.6% pay boost to an average $117,494 annual wage, according to inflation-adjusted data from Economic Modeling Specialists International. That figure includes bonuses, stock options and severance pay, as well as supplements such as employer contributions to a 401(k).

Unlike some other higher-wage sectors, including manufacturing, professional services workers face less risk of outsourcing.

"These are jobs that to some extent need to be done in the U.S.," said Enrico Moretti, an economics professor at UC Berkeley. "Therefore, the wages have faced less pressure from low-wage competition."

The demand for the professional services industry reflects the overall improvement in the economy, as businesses of all types need skilled workers and consultants to keep up with growing demand.

Los Angeles retail developer Caruso Affiliated had several major projects on hold during the recession, and the company was reluctant to make new hires, said Judy Johnson, a company spokeswoman. But over the last six months, the company has had several new hotel and residential developments come online.

Caruso is now looking to double the size of its construction department and has been looking for veteran land-use attorneys, architects and consultants — both in-house and through outside contracts.

"Obviously the market appetite was low for what we want to build," Johnson said. "Now the financial markets have opened up, and finding lending partners has been a lot easier for businesses than it was five years ago, let alone three years ago."

Jacob Yadegar, president of Empyrean Funding, a mortgage company, is back to hiring skilled bookkeepers and accountants after shedding jobs in the wake of the financial crisis. But he said the company is being more selective in its process.

"We're not being overly optimistic and aggressive with our expansion," Yadegar said. "We've got to find the right people. These are higher-paid positions, so we're not in a rush."

chris.kirkham@latimes.com

Twitter @c_kirkham

Times staffer writer Tiffany Hsu contributed to this report.

Copyright © 2014, Los Angeles Times
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Italy tries to cope with crush of migrants seeking refuge in Europe

Down a dusty back street in this Sicilian port, a crowded former school houses participants in what some are describing as nothing less than a biblical exodus.

Bashar, 17, fled the civil war in Syria and proudly showed off the bullet wound in his arm. Ahmad, a 16-year-old Egyptian, said he was heading for America because everyone says he looks like President Obama.

Yohannes, only 13, had traveled alone all the way from Eritrea in the Horn of Africa. He was reluctant to say much, his haunting eyes belying a ready smile.

The teens are among an estimated 71,000 people who have made the dangerous 350-mile voyage to Italy this year from the Libyan coast. The number already exceeds the total for all of the previous record year, 2011, at the height of the "Arab Spring" uprisings. Chaos in Libya, traditionally a staging point for would-be emigres trying to reach the European Union, has turned the operation into something of a free-for-all.

Italian government officials say as many as 18 vessels a day depart for Italy and that as many as 600,000 more migrants might be waiting in Libya to cross.

The exodus has overwhelmed front-line communities and contributed to a hardening of anti-immigration attitudes across Western Europe. Immigration by land, sea and air helped propel hard-right parties to strong showings in European parliamentary elections in May. Even in Sweden, which long has drawn asylum seekers with its generous social programs, attitudes have gotten tougher.

Many of the immigrants are fleeing the continued fallout from the Arab Spring revolts in Libya, Egypt, Syria and other Middle Eastern countries. Others journey from as far away as Bangladesh to seek better economic prospects.

After setting sail from Libya in rubber inflatables, wooden fishing boats or other rickety, overcrowded vessels, migrants are picked up by the Italian navy and taken to Sicily or, occasionally, the Italian mainland.

"We have no alternative but to intervene. There are people in danger," said Capt. Massimo Vianello, head of the navy operation, which began after 366 people drowned in October when their packed fishing boat, en route from Misurata, Libya, sank off Lampedusa, the southernmost Italian island.

The United Nations estimates that 750 migrants died trying to cross the Mediterranean last year and that 500 have perished so far in 2014. Last month, 45 corpses were discovered packed into the hold of a boat carrying 600 people, likely the victims of suffocation during the passage.

Vianello said that calm summer seas could mean more sailings — a gold rush for traffickers, who charge as much as $2,000 per passenger.

The desperate customers this year have included at least 10,000 Syrians fleeing civil war as well as Eritreans who have been turned out by Sudan, where many had sought refuge from military service at home.

"It has been an incredibly difficult journey," said Hassan, 26, a former Eritrean soldier who landed June 2 and who, like others, declined to give his full name for fear his family in Eritrea would be punished. He said he had been jailed in Libya for 10 days before paying $1,600 for the three-day crossing. He said he was determined to make it to London to study business.

Also setting sail from Libya are Somalis, Nigerians, Gambians, Ghanaians and others. Most of the boats, which hold anywhere from 80 to 250 migrants, are abandoned at the end of the journey, with the navy often letting them sink after the passengers have been picked up.

Father Mussie Zerai, an Italy-based priest, said drunken guards recently set fire to a migrant holding center in Libya "for their own amusement," shooting at people as they ran outside to escape the flames. Gunfire seriously wounded five people; the guards then severely beat the others, Zerai said.

In Lampedusa, meanwhile, a refugee center was closed in December because of a scandal over the treatment there. Since then, five Italian naval ships that pick up migrants at sea have dropped them off in Sicily.

Near the town of Mineo, housing formerly used by U.S. service personnel and their families has been packed with as many as 4,000 migrants seeking political asylum, a process that can drag on for more than a year. In Messina, a tent city has sprung up to handle the arrivals. Military aircraft deposit others at reception centers on the mainland.

Under European Union rules, asylum-seeking migrants are supposed to apply in the country where they make landfall and are first identified. But Italian officials say Syrians and Eritreans often refuse to give their fingerprints and are not forced to do so, which allows them to head north to seek asylum elsewhere.

Over the years, that has irked neighboring countries, including France. The Italian government has its own grievances with its EU partners. It fumes about the lack of naval support it receives from other European countries, forcing it to enlist passing private cargo ships to help ferry migrants to port.

The United Nations has suggested setting up centers in Libya where migrants can request European asylum before setting sail. But the violence plaguing the North African nation raises doubt about the practicality of the proposal.

Among those arriving in Italy as of June 17, according to an estimate by the Save the Children organization, were 5,840 unaccompanied minors granted permits to remain because of their age. They are sent to sorting centers such as the Augusta school for a 72-hour stay, which often stretches into months.

Because of overcrowding, some children were even briefly housed in a facility for the mentally ill.

"Organization is chaotic," said Michele Prosperi, Italian spokesman for Save the Children. "For a child to be put in an Italian psychiatric home alongside patients, after crossing the Sahara and being locked up in Libya without water, was absurd."

Nuccio Garilli, a former oil refinery worker who is one of the supervisors at the Augusta school building, said the youths in his care had been "toughened" by their journey. "I have seen them standing up to big, armed Italian cops," he said.

Garilli has his work cut out for him, trying to keep control of the hundreds of young people crammed into the school, where cots line the corridors and have replaced desks in the classroom.

Downstairs in the yard, Yohannes appeared intimidated by the crowd of fellow teenagers a day after his arrival.

Nursing sores on his hands from an infection contracted in a Libyan jail, he explained that his passage to Italy had been paid for by his brother, who had immigrated to Israel across the Sinai desert.

Yohannes said he last spoke to his parents by phone from Sudan two months earlier. He planned to head for Sweden, following the many youths who go north in search of family, friends and jobs.

"He will disappear, like all the other Eritrean kids, straight off to the train station, often within hours of arriving, helped by middlemen here in Europe," Garilli said.

About three-quarters of the unaccompanied young people who arrived by the end of May had already vanished, Prosperi said. An Augusta government official said the children could not be forced to stay at the migrant center.

"What are we meant to do, put them in jail?" asked Francesco Puglisi, Augusta's administrator for migrants.

Some Egyptian children, many of whom are sent to find work in Italy by their parents, allow themselves to be placed in a permanent children's home, only to run away.

"The Egyptian kids obsess about paying off the loans their parents took out to send them over," said Viviana Valastro, a Save the Children official.

But they often find themselves in danger. Four Egyptian boys who had passed through the Augusta school were freed by police in April after being kidnapped for ransom south of Rome. Migrant girls are lured to Italy with promises of jobs but are forced into prostitution.

Syrian refugees, who go through Egypt to Libya, are often wealthier and better-organized, officials said.

Recently, "an advertising manager from Damascus arrived at Catania in Sicily with his mother, who wore perfect makeup and pearl earrings," said Valastro. "They were probably going to drive from Milan to Hamburg, then get a train to Sweden."

As Yohannes prepared to start his own journey north, he looked anything but confident. Asked whether he regretted his long odyssey from Eritrea, the boy smiled sadly.

"I am not happy," Yohannes said. "I would like to be with my family."

Days later, he was gone.

Kington is a special correspondent

Copyright © 2014, Los Angeles Times

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Murdoch's Fox to sell European TV systems for $9.3 billion

21st Century Fox is selling its interest in pay-TV systems in Germany and Italy as part of a $9.3-billion deal that will give Rupert Murdoch's media company a big pile of cash.

Analysts have speculated that proceeds from the sale, which had been expected, could help finance Fox's proposed takeover of media giant Time Warner Inc.  Earlier this month, Time Warner rejected Fox's $80-billion offer, but most people expect the Murdoch family soon will up the ante with a higher bid.

Friday's transaction was complicated. Fox agreed to sell its interests in the two European systems -- Sky Italia and Sky Deutschland -- to British Sky Broadcasting, the giant pay TV service in Britain. 

The deal is expected to make British Sky Broadcasting a leading pay TV operator in Europe. 

Meanwhile, Fox owns 39.1% of British Sky Broadcasting -- a company that becomes even more valuable with the addition of the Italian and German pay-TV systems.

Fox said it would transfer Sky Italia, which it wholly owns, and its 57%  interest in Sky Deutschland to British Sky Broadcasting (known as BSkyB) in exchange for cash and assets valued at $9.3 billion.

The cash component of the deal is approximately $8.6 billion. Fox also will assume BSkyB's 21% interest in National Geographic Channels International, increasing Fox's ownership stake to 73%.

Fox said it would also spend $900 million to buy shares in BSkyB, which previously announced an equity offering, to maintain Fox's 39.1% stake in the British broadcasting giant.

Fox's net, after-tax, cash proceeds are estimated at $7.2 billion -- money Fox could use to buy Time Warner.  However, Time Warner is trying to make it more difficult for Fox to acquire it, including earlier this week adopting an amendment to its bylaws that aims to thwart dissident shareholders who might be more amenable to a sale to Fox.

"This transaction significantly enhances liquidity on our balance sheet to support our key operating principles including the consistent return of capital to shareholders," Fox Chief Operating Officer Chase Carey said in a statement.

The transaction with BSkyB is subject to regulatory approvals and the consent of BSkyB stockholders.

"Ultimately, a pan-European Sky is good for customers, who will benefit from the accelerated technological innovation and enhanced customer experience made possible by a fully integrated business," James Murdoch, co-chief operating officer of 21st Century Fox, said in a statement. 

Three years ago, Fox tried to buy the majority stake in BSkyB, but withdrew its bid during an outcry over revelations that reporters at Murdoch's News of the World tabloid in London had been eavesdropping on celebrities, sports figures, crime victims and even members of the British royal family.

Twitter: @MegJamesLAT

Copyright © 2014, Los Angeles Times
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'Lucy' set to soar. Satellite deal gives Fox lots of cash.

After the coffee. Before breaking this heat wave.

The Skinny: It's Friday and I have to wear a suit today to tape a TV interview about the Dodgers TV mess. If that's not bad enough, the interview is in Universal City, where it will be even hotter. Yes, you are hearing me gripe about being on TV. I'm too jaded. Today's roundup includes the weekend-box-office preview and a big deal by 21st Century Fox involving its European satellite assets, which will give it more cash to go after Time Warner.

Daily Dose: The SEC Network, ESPN's new college-sports channel that will cover the Southeastern Conference, is closing in on full distribution with three weeks to go before launch. On Thursday, it signed a deal with Time Warner Cable, and last week it nailed down Comcast. It currently has 60 million homes locked up. The big holdout is satellite broadcaster DirecTV, which has over 20 million subscribers. With Time Warner Cable, Comcast and satellite service Dish Network all carrying the channel, pressure will grow on DirecTV to get a deal done. 

"Lucy" in the sky: Box office for "Lucy," the science-fiction thriller starring Scarlett Johansson and Morgan Freeman, is expected to be sky-high. Industry analysts and insiders think "Lucy" will take in $45 million this weekend. That should be enough to beat "Hercules" starring Dwayne Johnson, which is expected to make between $30 million and $35 million. Also opening is the Rob Reiner-directed comedy "And So It Goes," starring Michael Douglas and Diane Keaton. I must not be that old yet, because whatever networks this movie is being promoted on, I'm not watching. The prediction for "And So It Goes" is $10 million. Weekend-box-office previews from the Los Angeles Times and the Hollywood Reporter.

Satellite of cash: 21st Century Fox announced early Friday a complex deal that transfers ownership of its German and Italian satellite services to BSkyB, the British satellite broadcaster that Fox has a 39% stake in. The deal will put $7.2 billion in Fox's pocket (after taxes), and most analysts expect the company will use the cash to help sweeten its offer for Time Warner. More on the deal from the Los Angeles Times, the Wall Street Journal and Bloomberg.

Will HBO go public (see what I did there?): Time Warner is figuring out how best to fend off 21st Century Fox, which wants to acquire the media giant. It already changed its bylaws to make it harder for dissident shareholders to call meetings or try to bounce board members. Now the New York Post says it is considering a partial spinoff of HBO. One aim of the reported move is showing shareholders the value of the pay-TV channel, part of a broader attempt to try to make the case that the Fox offer (currently $85 a share) is too low.

This is a job for the Expendables: A version of the new action movie "Expendables 3" leaked online and has already been downloaded almost 200,000 times, according to Variety. The is set to movie debut in three weeks, so imagine how many people will have seen it by then. Given that the movie is aimed at young men (even though it stars old men), odds are the piracy will hurt the box office.

Inside the Los Angeles Times: Kenneth Turan on "Lucy."

Follow me on Twitter. I'm a cool breeze on a hot day. @JBFlint

Copyright © 2014, Los Angeles Times
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Pac-12 football gets second red-carpet premiere at Paramount

Written By kolimtiga on Kamis, 24 Juli 2014 | 22.25

Paramount Pictures presents "Pac-12 Media Day II" on Thursday.

Oregon, the team the media have picked to win the conference, had its klieg-light moment Wednesday. Now UCLA, the team picked to lose to the Ducks in the Pac-12 title game, gets its chance.

The Bruins, who are picked to win the South Division, will be one of six teams scheduled to answer questions from the media at the studios of Paramount Pictures. Quarterback Brett Hundley, linebacker Eric Kendricks and Coach Jim Mora are to talk about the season.

The day is set to begin with an address from Pac-12 Networks President Lydia Murphy-Stephans, to be televised live, though not to Los Angeles viewers who have DirecTV. The Pac-12 and the satellite television giant still have not reached a deal.

Mora, meanwhile, has already answered one question. Will linebacker Myles Jack continue as a two-way player and see time at running back this season?

"We will continue to use him on both sides of the ball," Mora said. "He was such a great grasp of the defense scheme now that he can do more things on offense."

Still, Mora said, "We have to be careful with him."

Here is Thursday's schedule

9 a.m.: Murphy-Stephans.

9:30 a.m.: Arizona State Coach Todd Graham, quarterback Taylor Kelly, offensive lineman Jamil Douglas.

10:10 a.m.: Oregon State Coach Mike Riley, quarterback Sean Mannion, linebacker Michael Doctor.

10:50 a.m.: Mora, Hundley, Kendricks.

11:30 a.m.: Washington Coach Chris Petersen, tackle Ben Riva, linebacker Hau'oli Kikaha.

12:10 p.m.: Stanford Coach David Shaw, quarterback Kevin Hogan, defensive back Jordan Richards.

12:50 p.m.: Colorado Coach Mike MacIntyre, receiver Nelson Spruce, defensive tackle Juda Parker.

Twitter: @cfosterlatimes

Copyright © 2014, Los Angeles Times
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Erick Aybar double, Kole Calhoun walk key Angels' win over Orioles

Erick Aybar stepped to the plate in the eighth inning Wednesday night looking for a first-pitch fastball and got it, ripping Tommy Hunter's 96-mph offering into the gap in left-center field for a score-tying double.

Five batters later, Kole Calhoun went to the plate looking for a slider and never got it. Instead, the Angels leadoff man took five straight Brian Matusz fastballs, four of which were balls, resulting in a tie-breaking bases-loaded walk and a 3-2 come-from-behind victory over the Baltimore Orioles.

"I don't know if it was me laying off good pitches," Calhoun, who bats left-handed, said of his first-ever plate appearance against Matusz, the Orioles' tough left-handed reliever. "I was looking for a pitch and never really got it."

That seemed to be the theme of the night for the Angels, who never really got what they were looking for. The Angels, who went 22 for 52 (.431) with runners in scoring position in the five games before the All-Star break, were hitless in 12 at-bats with runners in scoring position Wednesday night and three for 25 in those situations in the series.

They failed to score after putting two on with no outs in the sixth. Howie Kendrick struck out after Aybar's eighth-inning double, failing to advance the runner with a grounder to the right side. After Aybar stole third, David Freese, who could score Aybar with a fly ball or grounder through a drawn-in infield, struck out.

"We did not execute well in the situational component in this series," Manager Mike Scioscia said. "We didn't get our bunts down, we didn't get guys over when we had a chance. Those things are going to happen. These guys are not perfect. You're not going to fire on all cylinders all the time, but they're better than that."

Aybar's big hit and stolen base in the eighth inning helped salvage the night and the series for the Angels, who lost the first two games.

Trailing, 2-1, Josh Hamilton led off the eighth with a broken-bat single to right, and Aybar smoked his RBI double into the gap for a 2-2 tie. After Kendrick and Freese struck out and Aybar stole third, Hunter walked Efren Navarro intentionally to put runners on first and third.

Chris Iannetta drew a walk to load the bases, and Orioles Manager Buck Showalter summoned Matusz, who has held left-handers to a .215 average (14 for 65) this season. But Calhoun took a ball, a strike and three balls to force in the winning run.

"Calhoun has a good eye -- that was a great at-bat for him," Aybar said. "Everybody was trying to do the job. You know, sometimes you struggle, but that's it, it's over. We start a new series against Detroit. Leave the past behind."

Copyright © 2014, Los Angeles Times
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Portia de Rossi joins 'Scandal'; Ellen DeGeneres breaks news on Twitter

"Scandal" fans will be seeing a new face when the series returns on Sept. 25: Portia de Rossi is joining the cast for a super-secret story arc, according to her publicist.

"Scandal," starting its fourth season, left off with Olivia Pope (Kerry Washington) flying off with Jake (Scott Foley) next to her, leaving behind her longtime lover, Fitz (Tony Goldwyn).

The news on De Rossi first broke when her wife, Ellen DeGeneres, tweeted: "So annoying when people brag on twitter & that's why I'm not tweeting that Portia just signed on to do a top secret arc on "Scandal". Oops."

"Scandal," by executive producer Shonda Rhimes, returns to ABC in its usual time slot, Thursday at 9 p.m., between Rhimes' previous hit "Grey's Anatomy" and her new series, "How to Get Away with Murder."

Copyright © 2014, Los Angeles Times
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In Alaska, wood frogs freeze for seven months, thaw and hop away

Each September, the wood frogs of Alaska do a very strange thing: They freeze.

They do not freeze totally solid, but they do freeze mostly solid. Two-thirds of their body water turns to ice. If you picked them up, they would not move. If you bent one of their legs, it would break.

Inside these frozen frogs other weird physiological things are going on. Their hearts stop beating, their blood no longer flows and their glucose levels sky rocket.

"On an organismal level they are essentially dead," said Don Larson, a graduate student at the University of Alaska, Fairbanks who studies frogs. "The individual cells are still functioning, but they have no way to communicate with each other."

The craziest thing of all may be that in this frozen state, they can withstand temperatures as low as zero degrees Fahrenheit for as long as seven months, and then, when spring arrives, thaw out and hop away.

Biologists have known for decades that some frogs freeze in the winter and thaw in the spring, but a paper published in the Journal of Experimental Biology reports that they can freeze longer and tolerate cooler temperatures than previously thought.

"There have been some studies, largely in the lab, that show frogs can stay frozen for a couple of weeks at temperates of about 20 degrees Fahrenheit," said Brian Barnes, director of the Institute of Arctic Biology at the University of Alaska, Fairbanks. "But up here in Alaska, we know these frogs are common all the way into the Arctic circle where it gets a lot colder than that. That's what kicked off our interest."

Adult wood frogs are about the size of the palm of your hand. A juvenile is the size of your thumbnail. According to Barnes, their lifespan is four to six years.

To see how these frogs were surviving the winter in the extreme Alaskan environment, the researchers used super glue to attach small radio transmitters about the size of a nickel to the backs of 16 frogs over two years.

The radio transmitters allowed the researchers to see where the frogs made their hibernacula -- divots in the leaf litter near a lake or pond, where they planned to spend the winter. Once the frogs were settled, the researchers placed little cages over the divots and stuck a wire thermometer in there to record the temperature at regular intervals.

"The snow provides a nice insulated layer for them, but we knew from previous studies that it still gets very cold beneath the snow," said Larson, the lead author of the study. "It was the survival that was surprising. We didn't see any die off, and that was the big shock."

Over the course of two years, none of the frogs in the study died.

The researchers also discovered that the frogs don't freeze once and stay frozen. Instead they spend a week or two freezing at night and thawing during the day, until the temperature drops permanently below freezing. 

Larson thinks this thawing and freezing patterns helps the frogs convert more of the glycogen stored in their liver into glucose. This is essential because it is the high levels of glucose in the frogs' cells that keep them alive throughout the long, cold winter.

The glucose's main function is to keep water inside the cells. Frostbite in humans is caused when the water in our blood outside turns to ice. That hyperconcentrates the fluid around the cells and tissues, which in turn draws water out of the cells. Eventually the cells get so dehydrated that they die.

Larson offers this analogy: "If you put a potato in salty water, the whole potato kind of shrivels up because all the water from the potato goes to the higher concentration of salinity, but if you add a bunch of salt to a potato, it would retain its water," he said.

By making the cells super sweet with glucose, the frogs keep the water from leaving their cells.

When spring comes and the frogs thaw, they turn as much of the glucose as they can back into glycogen, and they pee out the rest. Then they hurry to the nearest pond or lake to start mating. After all, they only have five months to make babies and gather all the food that they can before the freezing process starts again.

And now, there are more questions to answer. 

"So we have these amazing frogs that survive seven months frozen," Larson said. "I'm asking, what about the parasites and all the cool things that live in its mouth and its butt? Is freeze tolerance its own protection against disease? Can it rid animals of parasites?"

There's still a lot to learn.

For more amazing science news, follow me @DeborahNetburn and "like" Los Angeles Times Science & Health on Facebook

Copyright © 2014, Los Angeles Times
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Sony delays next 'Spider-Man.' Sexual Harassment at Comic-Con.

After the coffee. Before yelling at Obama for Wednesday's traffic mess.

The Skinny: It took me forever to get home Wednesday night, all because the president just had to have a party at producer Shonda Rhimes' Hancock Park house. Maybe if they had invited me ... Today's roundup includes a wrap-up of the upfront advertising season. Also, Sony delays the next "Spider-Man" movie, and there are some bad apples attending Comic-Con.

Daily Dose: How much should anyone read into a tweet. If it is from California's attorney general, maybe a lot. On Wednesday, Kamala Harris tweeted, "first pitch is in 4 mins. Too bad only 30% of LA baseball fans will be able to watch ... can't y'all work this out? Sure hope so." She was referring to the deadlock between Time Warner Cable, which distributes the Dodger-owned channel SportsNet LA and area distributors including DirecTV that aren't carrying it yet. So far, politicians and government officials have been reluctant to comment much less get involved in the fight. 

Tough sell. Advertisers were a little more cautious in buying commercial inventory on broadcast and cable networks for the upcoming fall season. A combination of declining ratings on many broadcast and cable outlets and the growth of digital options led many advertisers to reassess where they are putting their marketing money. Not everyone took a hit. NBC's improved performance helped boost its advertising take in the recently concluded upfront market. More from the Los Angeles Times and the Wall Street Journal.

Behave yourself. Any gathering that attracts tens of thousands of people is going to have its fair share of bad apples. Apparently even Comic-Con, a geekfest for comic book and science fiction fans, is no exception. It has become common for women to be subjected to groping in the big crowds and even verbal harassment. Comic-Con organizers said they are trying to be more aggressive about keeping the environment safe for everyone. The Los Angeles Times on a dark side at Comic-Con.

Caught in a web? Sony is delaying its next Spider-Man movie by two years. "Spider-Man 3" was scheduled to be released in the summer of 2016 and now won't hit the big screen until 2018. The move comes after "Spider-Man 2" didn't set the world on fire at the box office. Sony isn't throwing the towel in on having a big tentpole for 2016. It will premiere "Sinister Six," a movie about "Spider-Man" villains, in November of that year. Details on Sony's moves from Variety. 

Please stay. Chase Carey, the chief operating officer of Rupert Murdoch's 21st Century Fox and one of the mogul's top lieutenants, is seen as key to the company's ambitions of getting bigger through acquiring Time Warner. The problem is Carey's new contract runs just two years and gives him a window to leave even earlier. Investors want Carey to stick around longer, says Reuters.

If he can make it there. CBS said Stephen Colbert will make the Ed Sullivan Theater home when he takes over for David Letterman next year as host of "The Late Show." This was hardly a surprise as Colbert's Comedy Central show "The Colbert Report" is also based in New York. Still, the state of New York is throwing lots of perks at CBS for staying, including eligibility for more than $10 million in tax credits and grants to renovate the theater. If I were a taxpayer in New York, I'd be a little miffed. The New York Times on Colbert's new old home.

Inside the Los Angeles Times: A new report from the California Film Commission says that from 2010 to 2014, the state lost nearly $2 billion to runaway production.

Follow me on Twitter no matter what. @JBFlint

Copyright © 2014, Los Angeles Times
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Wal-Mart names new CEO of U.S. division

Wal-Mart U.S. chief Bill Simon is stepping down after being in the role since June 2010, the company said Thursday.

The world's largest retailer named the head of its Asian business as his replacement.

The Bentonville, Arkansas-based retailer said Greg Foran, 53, who was promoted to president and CEO of Wal-Mart Asia earlier this year, will succeed Simon. The changes will take effect Aug. 9. Wal-Mart Stores Inc. said Simon will be available on a consulting basis for the next six months to ensure a seamless transition.

U.S. Wal-Mart stores have suffered five straight quarters of sales declines at stores open at least a year, hurting from a tough economy and fierce competition from dollar stores and Amazon.com. The measure is considered a key indicator of a retailer's health because it excludes results from stores recently opened or closed.

Thursday's announcement marks the company's biggest management shakeup since Doug McMillon took over as president and CEO of Wal-Mart Stores Inc. in February.

Foran will report to McMillon, who had been head of Wal-Mart's international business before taking over the top job at the company.

Simon, who joined Wal-Mart in 2006, was the chief operating officer for Wal-Mart's U.S. division from 2007 to 2010 and created and launched Wal-Mart's successful $4 prescription drug program.

When Simon took over as CEO of Wal-Mart's U.S. division, he led the turnaround of Wal-Mart's business right after the recession by focusing on the company's roots of offering everyday low prices. He also helped restore thousands of popular items that the company had stopped selling in an overzealous attempt to declutter the stores. That helped Wal-Mart get out of a two-year slump in late 2011.

Simon also led the company's campaign to revitalize U.S. manufacturing and helped to spearhead the company's move to accelerate its plans for small-store formats. But Wal-Mart, like many of its store rivals, is facing seismic changes in the retail landscape as shoppers are increasingly going to small stores or buying and researching on their mobile devices for convenience.

The move to name Foran indicates Wal-Mart is looking to further shake up its strategy.

"Greg is one of the most talented retailers I've ever met," McMillon said in a statement. "His depth of knowledge and global experience will bring a fresh perspective to our business. His passion for fresh food, experience in general merchandise and commitment to e-commerce will help us serve our customers even more effectively for years to come."

Foran, a 35-year retail industry veteran, joined Wal-Mart in October 2011 and became president and CEO of Wal-Mart China in March 2012. He was promoted to president and CEO of Wal-Mart Asia earlier this year.

Before joining Wal-Mart, Foran held a number of roles with Woolworths, the leading retailer in Australia and New Zealand.

Copyright © 2014, Los Angeles Times
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Stocks open higher as investors gauge earnings

The U.S. stock market is opening slightly higher as several big companies across industries report second-quarter earnings.

The Dow Jones industrial average rose two points, or 0.02 percent, to 17,089 as of 9:35 a.m. Eastern time Thursday. The Standard & Poor's 500 index also added two points, or 0.1 percent, to 1,988. The Nasdaq advanced 10 points, or 0.2 percent, to 4,484.

Facebook rose 7.4 percent after beating expectations for earnings. The world's largest social media company said late Wednesday that it earned $788 million in the April-June period.

Ford's stock advanced 1.5 percent. It reported second-quarter earnings early Thursday that climbed 6 percent on gains in Europe.

The Labor Department said weekly applications for unemployment aid dropped to a seasonally adjusted 284,000. That's the lowest reading since February 2006.

Copyright © 2014, Los Angeles Times
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Man City supporters might prefer to walk alone after scarf mix-up

Boosters who purchased fan packages for the soccer game between Manchester City and Liverpool on July 30 at Yankee Stadium got an unwelcome surprise when they discovered they received Liverpool scarves instead of the Man City scarves they were expecting. 

New York-based event promoter Relevent Sports offered fan packs that include seats in the supporters' section for the selected team, an oversized commemorative ticket, a lanyard and a team scarf. Liverpool supporters did not fare better, receiving vouchers for a Manchester City scarf redeemable at the stadium on game day. 

Man City supporter Tom Komaromi of Saratoga Springs, N.Y., said he was really excited when the three fan packs he ordered arrived. "Then I opened the box, and saw that red. ..." 

Added Victoria McPeak of Las Vegas, who ordered a fan pack for her husband, Cliff, who is a Liverpool fan: "It is pretty close to being worst-case scenario."

The $99-per-ticket packages were scheduled to be shipped around July 1, but many fans did not receive the packages until this week and then discovered the error. In addition, no one who spoke to The Times had received a lanyard.

Benjamin Spencer, Relevent Sports' director of communications, said the company worked with outside vendors on fulfilling the orders and they had not yet determined how the mix-up occurred. "The most important thing is this did not live up to the very high standards we set for a fan experience regardless of how it happened, and we are working with fans to make it right." 

Spencer said he is not sure how many orders were affected by the mix-up, but dozens of people reported the problem on social media. He said the sales team is getting back to customers as quickly as possible with instructions on what to do. Those affected have been told to bring the Liverpool scarves and Manchester City scarf vouchers to the game and they will be exchanged for the correct item.

"It actually made me feel better it wasn't just me," Komaromi said of the mix-up, although he added he's not excited about the prospect of carrying a rival's scarf around on game day. "I was thinking I could bring them in a paper bag."

McPeak said she and her husband had to change travel plans and, much to his disappointment, he will not be able to attend the game. "We basically have a $100 certificate for a Man City scarf," she said. 

The match is part of the International Championship Cup, a second-year tournament being played across the U.S and Canada that includes top European clubs. This year's field includes Real Madrid, AC Milan, AS Roma, Olympiacos, Inter Milan and Manchester United as well as Manchester City and Liverpool. 

Copyright © 2014, Los Angeles Times
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L.A.-bound Obama sticking to fundraising, event schedule amid protests

Written By kolimtiga on Rabu, 23 Juli 2014 | 22.26

Angelenos, get those alternative traffic routes ready.

President Obama  will arrive in Los Angeles this afternoon on the third stop of a three-day West Coast swing that has combined a heavy dose of fundraising and a few official duties. The commander in chief will be raising money for November's midterm elections and speaking at Los Angeles Trade Technical College about the importance of "job-driven skills training," according to the White House.

That event may be the most visible part of his Los Angeles stay, but it's the fundraising -- in Seattle, San Francisco and Los Angeles, for Democratic candidates in November's races -- that has drawn harrumphs from critics.

"With all that's happening in our country and around the world -- wildfires, droughts and international crises, I think everyone can agree the last thing the president should be doing is fundraising," Republican National Committee spokeswoman Kirsten Kukowski said in a statement Tuesday.

White House officials have defended sticking with Obama's schedule, noting that the president has access to the same communications, advisors and intelligence whether he is in Washington, D.C., or traveling. But the international events have already influenced one decision -- to not appear on "Jimmy Kimmel Live!" on Wednesday.

White House spokesman Josh Earnest said Tuesday that although the administration had been in talks with the ABC show to appear, "We ultimately elected not to have the president do that interview over the course of this trip, and that is at least in part related to the challenges of doing a comedy show in the midst of some of these other more serious matters that the President is dealing with in the international scene."

Speaking Tuesday at the waterfront home of campaign bundlers Ann and Bruce Blume, Obama acknowledged the global troubles on his plate, saying that despite progress under his tenure Americans still feel "anxious."

Although he usually attributes that anxiety to economic uncertainty, on Tuesday he added "some big challenges overseas," including the war in Ukraine, "Russia's aggression toward its neighbors," the Syrian civil war, terrorist threats, Israel and Gaza.

The effect, Obama told donors at the afternoon reception, is "just the sense that around the world the old order isn't holding and we're not quite yet where we need to be in terms of a new order that's based on a different set of principles."

As he arrived at the reception with views of Lake Washington, Obama was greeted by a few dozen pro-Palestinian protesters waving signs decrying Israel's ground assault in Gaza -- "End the occupation, Mr. President. Stop apartheid" -- and chanting "Free Palestine!"

Protests are the norm when any president travels. On Wednesday in Los Angeles, several liberal groups have promised hundreds of protestors urging Obama to take a stand on net neutrality. According to TruthRevolt, a conservative media source, banners and flyers have been posted near the site of Obama's fundraiser making a play on the logo of the hit-television show "Scandal" and including an obscene hashtag.

The creator of the show, Shonda Rhimes, is hosting a Democratic National Committee fundraising dinner early Wednesday evening at her home; about 450 people are expected to attend, according to a DNC official who spoke on the condition of anonymity. Obama appointed Rhimes to the Kennedy Center board of trustees last year.

Actress Kerry Washington, who stars in the show as crisis fixer Olivia Pope, is a co-host, according to an invitation posted on Political Party Time, a website that tracks political fundraisers. Donors are contributing between $1,000 and $32,400 to attend the Hancock Park event.

On Thursday, Obama will speak at a roundtable discussion attended by 25 supporters contributing up to $32,400, according to the DNC official.

The morning event will take place at the home of Live Nation CEO Michael Rapino, according to the Hollywood Reporter.

For those who have suffered through traffic nightmares during the president's frequent visits to Los Angeles -- which generally seem to coincide with rush hour -- the invitation to the event suggested there is a respite for the remainder of 2014.

"This is the last trip to Los Angeles the president will be making this year and a truly special opportunity to interact with the leader of the free world in an off the record, small forum," the invitation said, according to the Hollywood Reporter.

Follow @LATSeema for political news.

Copyright © 2014, Los Angeles Times
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Pac-12 media day: Expanded event begins with commissioner's address

The Pac-12 Conference's annual preseason football media gabfest, which begins Wednesday morning, has been expanded from one day to two.

That's still only half as long as the four-day Southeastern Conference marathon.

The Pac-12 event also has rotated to yet another stop on what has become a Hollywood studio tour.

For years, media day was held at a hotel near Los Angeles International Airport But it has since been staged at the Fox, Universal and Sony Pictures studios. On Wednesday and Thursday, head coaches and select players will hold court at the studios of Paramount Pictures.

Pac-12 Commissioner Larry Scott, who has strived to give the conference a higher national profile, is set to open the event with his annual address.

New USC Coach Steve Sarkisian, Trojans quarterback Cody Kessler and defensive lineman Leonard Williams are scheduled to address the media on Wednesday.

UCLA Coach Jim Mora, Bruins quarterback Brett Hundley and linebacker Eric Kendricks are scheduled for Thursday.

Here is Wednesday's schedule:

9 a.m.: Scott.

9:30 a.m.: Arizona Coach Rich Rodriguez, receiver Austin Hill  and safety Jared Tevis.

10:10 a.m.: California Coach Sonny Dykes, quarterback Jared Goff and cornerback Stefan McClure.

10:50 a.m.: Sarkisian, Kessler and Williams.

11:30 a.m.: Oregon Coach Mark Helfrich, quarterback Marcus Mariota and linebacker Derrick Malone.

12:10 p.m.: Washington State Coach Mike Leach, quarterback Connor Halliday and linebacker Darryl Monroe.

12:50 p.m.: Utah Coach Kyle Whittingham, receiver Dres Anderson and defensive end Nate Orchard.

Thursday's schedule:

9:30 a.m.: Arizona State Coach Todd Graham, quarterback Taylor Kelly and offensive lineman Jamil Douglas.

10:10 a.m.: Oregon State Coach Mike Riley, quarterback Sean Mannion and linebacker Michael Doctor.

10:50 a.m.: Mora, Hundley and Kendricks.

11:30 a.m.: Washington Coach Chris Petersen, offensive tackle Ben Riva and linebacker Hau'oli Kikaha.

12:10 p.m.: Stanford Coach David Shaw, quarterback Kevin Hogan and defensive back Jordan Richards.

12:50 p.m.: Colorado Coach Mike MacIntyre, receiver Nelson Spruce and defensive tackle Juda Parker.

Twitter: @latimesklein

Copyright © 2014, Los Angeles Times
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Hollywood wary of 21st Century Fox's ambitions. Blake out at Sony.

After the coffee. Before figuring out who to torment today.

The Skinny: Whenever "The Godfather" comes on I can't change the channel. I also then start tweaking the script to fit the media world. I may need more therapy, or at least a vacation. Today's roundup includes more stories about 21st Century Fox's move on Time Warner. Also another shake-up at Sony Pictures and some Comic-Con previews.

Daily Dose: Another reason 21st Century Fox is eying Time Warner may be Time Warner's strong presence in Latin America, which is the fastest-growing pay-TV market, according to media analyst Todd Juenger. In a new report, Juenger said Fox and Time Warner have gobbled up valuable real estate there, along with Discovery Communications. Juenger said Viacom and AMC Networks have been left in the dust in the region.

A call to arms. Hollywood unions are starting to sound alarm bells about 21st Century Fox's pursuit of Time Warner. If consummated, a combination of 21st Century Fox and Time Warner would put two of Hollywood's biggest movie and TV producers, as well as several top cable networks, under one roof. That would give one company tremendous leverage over the creative community. The Writers Guild of America, West wants its members to rise up and get out their checkbooks to help WGAW combat a potential merger. Think of it as a pledge drive against consolidation. More from the Los Angeles Times and Financial Times on how Hollywood's worker bees are responding to all the deal talk.

Keeping balance on the balance sheet. Media mogul Rupert Murdoch has never been afraid to make big bets. But when it comes to 21st Century Fox's pursuit on Time Warner, the mantra coming from his underlings is "discipline." The company doesn't want to overpay for Time Warner and may not push its offer to the $100-per-share range that analysts think would win it the company. The Wall Street Journal looks at 21st Century Fox's balance sheet and the debt it may have to take on to get a deal done.

Blake bids adieu. Sony Pictures Entertainment Vice Chairman Jeff Blake is the latest to exit the studio, which is going through a management restructuring. Blake has been with Sony Pictures for more than two decades and oversaw its marketing distribution units. More on Blake's departure and other recent moves at Sony from the Los Angeles Times and Variety.

It's that time again. Comic-Con gets underway this week in San Diego. I won't be there so try to have fun without me. Here are some previews of what's coming from Variety and the Los Angeles Times.

Inside the Los Angeles Times: Online programmer BiteSize wants to take a bite out of traditional TV.

Follow me on Twitter. I put the dog in dog days. @JBFlint.

Copyright © 2014, Los Angeles Times
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Some 'Downton Abbey' details to hold you over before Season 5

American viewers are still a ways off from having the upstairs-downstairs bunch of "Downton Abbey" over as guests in their homes through the telly, but we have some crumpets of information to hold you over before then.

Executive producer Gareth Neame and cast members Michelle Dockery, Laura Carmichael, Allen Leech, and Joanne Froggatt appeared before reporters Tuesday night as part of PBS' session at the Television Critics Assn. press tour in Beverly Hills.

After a trailer of the upcoming fifth season -- Lady Mary riding a horse! Talk of Dowager Countess having a "past"! Bates talking children! -- was shown, the group talked about what lies ahead (though they were about as tight as Lady Edith's finger wave with giving too much detail).

"I think for all of these characters, everything is just ratcheted up," Neame told reporters. "Everything is much more complicated."

The new season of the British period drama, which rolls out Jan. 4 on PBS, will take place in 1924, about six months from where the finale left off. Here are some bits we gathered of mostly what not to expect.

-- Forget the pigs? With Season 5 not yet airing across the pond in Britain, Neame and the cast were careful about revealing too much about what's in store. Then Leech, who quickly became the rock star of the panel, let it slip: "Well, the unicorn farm, no one expects it."

-- Blinded by love? Helping hands Anna and Bates have weathered their share of turmoil--murder charges, prison, rape, then the cliffhanger that left fans wondering whether Bates murdered the man who raped Anna.  Heading into Season 5, Froggatt said: "There are a lot of questions for Anna and Bates still. They're both keeping secrets from each other in order to protect the other person.... I think in her heart of hearts, she really does feel that Mr. Bates hasn't done anything because she doesn't think that Mr.Bates knows that it was Mr. Green who raped her. However, she has this doubt, and it doesn't leave her. It's something that haunts her in Season 5."

-- Back for more? Asked whether Shirley MacLaine, who played Cora's mother, or Paul Giamatti, who played Cora's brother, would revisit the series in Season 5, Neame shot down those dreams but added "they may well be in future seasons of the show."

-- Parent swap? Internet theorists are never in short supply, and those who follow "Downton Abbey" with a close eye have wondered if Lady Edith is really the biological child to Lady Rosamund (Samantha Bond). Hello, they basically have the same hair color. But it's a notion that Carmichael said has no truth to it, though she understands it:  "I think it comes from those moments when Edith says, 'You won't understand, Rosamund, because you're not a mother.' And the pain that Sam Bond played in that moment, I think, is she's a childless woman and so she cares for Edith in that way."

-- New faces. Two new characters--Simon Brickers (Richard E. Grant) and Lady Anstruther (Anna Chancellor) -- will appear in Season 5. Lady Anstruther, who is the former employer of rascally footman Jimmy, is a "troublemaker," Dockery said. "She comes to the house and, yeah, she creates havoc." To which Leech added, "She's looking for something." As for Bricker, an art historian and house guest at the estate, "He's looking for something as well," Leech teased. "Something similar and a painting. Oh, I've said too much."

-- Lady Mary is ready to bite back. After spending Season 4 in mourning over the death of her husband, Lady Mary will have some fun this season with all her suitors. "I think this series, she's quite impulsive and she's embracing her life, really," Dockery said. "She's kind of through the grief now.… She's got a bit of her bite back that we had in [Season] 1, which I've enjoyed playing."

-- Keeping track. Neame jokingly acknowledged, when asked by a reporter, that staying in the know about who has renegotiated their contracts is an important element to plotting out the fate and/or exits of characters on the show to avoid a situation where the writers are scrambling. To which Leech interjected: "You're expecting the 'Downton Abbey' Red Wedding, aren't you?" Uh, wouldn't that be something?  

--Meet the Brarys? Eh, not so fast. Leech is well aware there are die-hard fans that hope to see a relationship bloom between Branson and Lady Mary. And he's one step ahead of y'all. He's given the characters a nickname: The Brarys. "I just christened them that," he said. "Damn Brarys." But more seriously, Leech offered this thought: "At the end of the day, they are after the same thing for Downton, which is sustainability. They want to see Downton continue into the future, not only for themselves, but obviously now for their offspring." 

"Yeah," Dockery added. "And they are both looking for love.

"They are, but not with each other," Leech clarified.

"No."

"But they are happy to talk about love with each other, but not with each other. Brarys."

OK. If not them, maybe Mrs. Hughes and Carson?  The two held hands in the finale; could love be in the air? The question caused Dockery to clear her throat. Leech was less shy: "We all hope that they get together. I think everyone does. It would be a lovely story, but let's see.

**For those looking to brush up on their etiquette, PBS will air "The Manners of Downton Abbey, a one-hour documentary featuring the show's on-set historian Alastair Bruce, prior to the Season 5 premiere.

For more TV news, follow me on Twitter: @villarrealy

Copyright © 2014, Los Angeles Times
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Stocks mixed as earnings reports roll in

Stock indexes were little changed in early trading Wednesday as mostly positive earnings in the technology sector were outweighed by disappointing news out of aircraft giant Boeing.

KEEPING SCORE: The Dow Jones industrial average fell 30 points, or 0.2 percent, to 17,078 as of 10:07 a.m. Eastern. The Standard & Poor's 500 index rose less than a point to 1,983 and the Nasdaq composite rose six points, or 0.1 percent, to 4,462.

BIG TECH: Apple reported higher quarterly profits after the market closed Tuesday, topping analysts' estimates. Sales of iPads slipped, but iPhone shipments increased 13 percent over a year earlier. Apple rose 83 cents, or 1 percent, to $95.56.

NEED A REPAIR MAN: Appliance maker Whirlpool fell $7.37, or 5 percent, to $135.70 after the company's earnings came in well short of analysts expectations. The company reported an adjusted profit of $2.62 per share compared with the $2.88 expected by analysts,

NO LIFT: Boeing reported a 52 percent jump in quarterly profits, but still investors weren't impressed. Boeing lost fell $3.18, or 2.5 percent, to $126.55, the biggest decline in the Dow.

BONDS AND OIL: Prices for U.S. government bonds rose. The yield on the 10-year Treasury note dipped to 2.45 percent from 2.47 percent late Tuesday. Benchmark U.S. crude oil rose 16 cents to $102.55 a barrel.

Copyright © 2014, Los Angeles Times
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Chinese firm sues Paramount in 'Transformers' product-placement beef

The management of a scenic park in southwestern China featured in "Transformers: Age of Extinction" said Wednesday that it had filed a lawsuit against Paramount Pictures and one of the studio's Chinese partners seeking about $3.4 million in damages over what it says is a product-placement deal gone sour.

Chongqing Wulong Karst Tourism Group Co. claims the studio failed to include the park's name in the film as agreed in its contract with M1905, Paramount's go-between on the product-placement deal. As a result, park representatives said, viewers of the movie were left with the mistaken impression that the scenes filmed at the Wulong park are in Hong Kong.

The park's management said it wanted Paramount to include the park's name and logo in the DVD version of the movie, as well as any versions aired on TV or online. It also is seeking the return of the product-placement fee of about $800,000, another $660,000 for lost revenue during the park's closure for eight days of filming, and $2 million in general damages.

The company said it formally filed the suit on Tuesday with the Third Intermediate People's Court of Chongqing.

Paramount representatives did not immediately respond to a request for comment. Previously, M1905's management said that it was trying to resolve the dispute and that the park was partly to blame because it had paid the product-placement fee late, a charge Wulong executive Huang Daosheng denied in an interview earlier this month. M1905 is the online subsidiary of state-run television's China Movie Channel, also known as CCTV6.

The park's suit is the second legal dispute filed over "Transformers" product-placement contracts in China. In June, just ahead of the film's release, Beijing's Pangu Plaza hotel and mall complex sued two other go-betweens who helped arrange its product-placement deal with Paramount in China.

Featuring extensive scenes set in China, several Chinese actors and a raft of Chinese product placements, the fourth installment in the "Transformers" series has become the all-time best performing film at the mainland box office since its release June 27. Its total haul in the territory has surpassed $285 million, and the movie will probably end up crossing the $300-million mark.

Huang, the Wulong executive, said no one from the park had seen the film until June 23. Until then, everything seemed to be on track, he said. Paramount representatives had visited the park six or seven times before filming, and park staff had hosted director Michael Bay at the nature reserve and assisted him with research at the site, which features natural limestone bridges, gorges and caves.

Although the park's contract for the product placement was signed only with M1905 and not directly with Paramount, Huang said the park decided to name Paramount as a defendant because it was the producer of the film and the "responsible party."

Twitter: @JulieMakLAT

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Tim Tebow isn't acting like someone who's settled into an analyst role

Tim Tebow is going to be ready when football season rolls around. He's been working out hard with a quarterback guru in L.A. and a trainer for NFL players in Scottsdale, Ariz.

One little thing, though -- Tebow is not a quarterback by profession at this point. Nor is he an NFL player. His job this football season, barring some unforeseen circumstances, will be as an analyst for the new SEC Network.

"One of my favorite quotes is, 'I don't know what my future holds, but I know who holds my future,'" Tebow told Phoenix TV station KSAZ during a recent workout. "And in that, it gives you peace to just continue to work, go after what your heart desires and when you do that, you don't have any regrets. I think that's the best way to live life."

And even though Tebow already has a job lined up for the fall, what his heart seems to desire is another shot at the NFL, even though he hasn't started a game since 2011 or been under contract with a team since last August.

It appears the grueling workouts he's been taking part in of late have only encouraged the former Heisman Trophy winner and two-time national champion with the Florida Gators to continue pursuing his dream no matter what adversity comes his way.

"One of the greatest things it teaches is to keep fighting," said Tebow, who has an opt-out clause in his contract with the SEC Network just in case an NFL team comes calling. "Maybe when the chips are down and you're exhausted, you feel like you can't keep going, it just teaches you to continue to keep fighting."

Follow @chewkiii on Twitter

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China detains employees of suspect meat seller

BEIJING — Five employees of a company accused of selling expired beef and chicken to McDonald's, KFC and other restaurants in China were detained by police Wednesday after an official said illegal activity was an organized effort by the supplier.

China's food safety agency said on its website that its investigators found unspecified illegal activity by Husi Food Co. but gave no confirmation expired meat had been found or other details.

Some of the illegal conduct was an "arrangement organized by the company," the deputy director of the agency's Shanghai bureau, Gu Zhenghua, told the official Xinhua News Agency.

Those in criminal detention include Husi's quality manager, the Shanghai police department said on its microblog account. The one-sentence statement gave no details of possible charges or the employees' identities.

The scandal surrounding Husi, which is owned by OSI Group of Aurora, Illinois, has alarmed Chinese diners and disrupted operations for fast food chains.

It erupted Sunday when a Shanghai broadcaster, Dragon TV, reported that Husi repackaged old beef and chicken and put new expiration dates on them. It said they were sold to McDonald's, KFC and Pizza Hut restaurants.

Xinhua said the manager of Husi's quality department, Zhang Hui, told investigators "such meat had been produced under tacit approval of the company's senior managers." It said the company "has been conducting the malpractice for years."

An employee who answered the phone at the food agency office in Shanghai declined to give any additional details.

A woman who answered the phone at Husi's Shanghai headquarters said the company would not comment until the investigation was completed. She declined to give her name.

Restaurant operators that have withdrawn products made with meat from Husi include McDonald's Corp., KFC owner Yum Brands Inc., pizza chain Papa John's International Inc., Starbucks Corp., Burger King Corp. and Dicos, a Taiwanese-owned sandwich shop chain.

The scare has also spread to Japan, where McDonald's said 20 percent of the meat for its chicken nuggets was supplied by Husi.

Product safety is unusually sensitive in China following scandals over the past decade in which infants, hospital patients and others have been killed or sickened by phony or adulterated milk powder, drugs and other goods.

Husi said in a statement earlier this week it was "appalled by the report" and believed it to be an "isolated event." It promised to cooperate with the investigation and to share the results with the public.

The State Food and Drug Administration's statement Wednesday said investigators seized 160 tons of raw material and 1,100 tons of finished products from Husi. The agency said earlier its investigation would extend to Husi facilities in Shanghai and five other provinces.

During a conference call Tuesday to discuss its financial results, McDonald's Corp. CEO Don Thompson said the company felt a "bit deceived" about the plant in question.

Foreign fast food brands are seen as more reliable than Chinese competitors, though local brands have made big improvements in quality.

KFC, China's biggest restaurant chain with more than 4,000 outlets and plans to open 700 more this year, was hit hard by a report in December 2013 that some poultry suppliers violated rules on drug use in chickens. Sales plunged and KFC overhauled quality controls, cutting ties with more than 1,000 small poultry suppliers.

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Any white knights for Time Warner? Netflix hits 50-million mark.

Written By kolimtiga on Selasa, 22 Juli 2014 | 22.25

After the coffee. Before the joy of giving my cat a pill.

The Skinny: I watched Episode 3 of HBO's "The Leftovers" last night. I think I'm done. I'm just not getting hooked and last night I found myself fast-forwarding, which is never a good sign. Today's roundup includes a look at potential white knights for Time Warner. Also, Comcast and Netflix release earnings and there's a shake-up at CBS Films.

Daily Dose: The cable operator Mediacom wants the Federal Communications Commission to get involved in how programming is sold to pay-TV distributors. In a filing at the agency, Mediacom asks the FCC to make it harder for big programming companies such as Viacom and 21st Century Fox to sell their channels in big bundles. "Programmers can and do effectively force MVPDs [multichannel video programming distributors] and their video customers to purchase unwanted networks," Mediacom said. In other words, even if all you want are the popular channels, you have to carry the less popular ones. Mediacom also wants the FCC to look into the huge discounts programmers give big distributors such as Comcast and DirecTV. Mediacom and other smaller distributors gripe that such discounts raise prices for everyone else.

Any white knights out there? 21st Century Fox's rebuffed $80-billion offer for Time Warner effectively put the entertainment giant in play. Now the questions are when will 21st Century Fox make a higher offer and will any other potential suitors emerge. Meanwhile, Time Warner's board adopted a new provision that would make it difficult for any dissident shareholders to assist in a hostile takeover effort. A look at who else could kick Time Warner's tires and the company's latest defensive move from the Los Angeles Times and Bloomberg. 

Another milestone. Netflix has passed 50 million streaming customers around the globe, including more than 36 million in the United States. Profits at Netflix for the second quarter hit $71 million, more than double from the same period a year ago. Revenue grew 25% to $1.34 billion. And, of course, Netflix stock rose in after-hours trading. More on Netflix's results from the Los Angeles Times and Wall Street Journal.

Profit up, video subscribers down. Cable and entertainment giant Comcast reported second-quarter earnings of $1.99 billion, a 15% gain over the same period a year ago. Revenues were up 3.5% to almost $16.8 billion. The company added broadband subscribers but experienced drops in video subscribers. Its NBCUniversal unit was flat at $6 billion as Universal Pictures had a soft quarter. An early look at the numbers from the Los Angeles Times and New York Times.

Start the press. There has been a shake-up at CBS Films. Nikki Finke reports that Terry Press has taken over as president. Press had been sharing that title with Wolfgang Hammer (great name) but Hammer has quietly left the CBS unit, which makes low-budget films. Finke says there have been additional cuts at the studio in the last few weeks.

Aereo by numbers. Aereo, the start-up service that shut down after losing a legal fight with the broadcasters whose local signals it was streaming on the Internet, had about 80,000 subscribers. Aereo always refused to provide the media with even an estimate of how many subscribers it had, but a recent filing with the U.S. Copyright Office provided enough information to determine just how many people it had signed up. Details on the numbers from Re/Code.

Inside the Los Angeles Times: Tom Petty won't back down.

Follow me on Twitter. It's for your own good. @JBFlint.

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Allergan to slash workforce by 1,500

Botox maker Allergan Inc. said Monday that it will cut 1,500 employees, most of them in Southern California, in a cost-cutting effort the Irvine company hopes will help it fight off a hostile takeover bid by a Canadian rival.

Stung by criticism that it's too fat, Allergan will slash about 650 research-and-development employees, many of them high-paying scientists based in Irvine. The company is also closing facilities in Santa Barbara and Carlsbad, Calif., where a combined 400 employees work.

Allergan chief David E.I. Pyott said the cuts will help the company achieve about $475 million in annual savings, boosting profits in the face of an attempted acquisition by Valeant Pharmaceuticals International Inc.

"Sadly, I have to say, it will be quite a big effect on Southern California," Pyott said in an interview with The Times. Most of the cuts will be made by Thanksgiving, he said.

Valeant and its partner in the attempted takeover, activist investor Bill Ackman, have said Allergan is burdened by unnecessary expenses that hurt profits and shareholder value. If Valeant succeeds in the takeover, the company had promised sweeping cuts at Allergan.

The cuts are part of a restructuring that Allergan said will drive its earnings per share to $10 by 2016, more than twice as much as it earned last year.

Investors cheered the news, driving Allergan's shares up $3.74, or 2.2%, to $171.14 in Monday trading.

The cuts came shortly after reports that Allergan's second-largest stockholder had sold nearly all of its shares.

Mutual-fund giant Capital Research sold the shares after meeting with Pyott this year, the Wall Street Journal reported, citing people familiar with the matter. A Capital Research spokesman declined to comment.

Allergan's board has twice rejected Valeant's buyout offers, calling them too low and not in the best interests of shareholders. Valeant's latest offer is for $72 in cash and 0.83 shares of its own stock for each share of Allergan. Based on Monday's closing price, that would amount to $176.20 per share.

Valeant is trying to schedule a special meeting of Allergan shareholders in an attempt to replace several members of its board with nominees who support the buyout.

Bernstein Research analyst Aaron "Ronny" Gal said Allergan's cuts will increase the value of the company to about $200 a share, while addressing concerns by many that the company was too fat.

"Most Allergan watchers knew for years that Allergan has room for cuts and were frustrated by management's view that the cash is better spent internally," Gal said.

Gal said he thinks Allergan shareholders will reject the offer, unless Valeant significantly increases it.

"They're going to have to raise their bid if they're going to get this," he said.

Ackman, in an interview with CNBC, said he still expects the deal to go through. Investors often are not impressed when companies make cuts under duress.

"What you're really doing is cutting out fat you should have cut out a long time ago," Ackman said. "Typically, shareholders don't believe management because they've been asking for it for years ... and only when the CEO is at the risk of getting thrown out does he get religion."

Pyott acknowledged that the task of cutting so many jobs will be "extremely unpleasant" but is far better than the 5,000 jobs that could be lost if Valeant acquires the company.

He said that institutional investors had told him in private meetings that they'd support a stand-alone company if it could boost earnings. The company's new earnings guidance for 2015 and 2016 exceeds those investors' expectations, Pyott said.

"At the end of the day, we're just going to have to put up some extraordinary results to show we can create value," Pyott said. "And hopefully we can put up enough value on the table that Valeant will have to go away and do something else."

The protracted takeover attempt has sparked concerns among Allergan employees, Irvine merchants and the city's mayor over potential job losses. Of Allergan's global workforce of more than 11,000, about 2,300 are based at its Irvine headquarters.

In addition to Botox, which produced nearly $2 billion in sales last year, Allergan sells ophthalmic medication, breast implants and Latisse, a drug that thickens eyelashes. It reported $6.3 billion in revenue in 2013.

The company spent lavishly on research, about $1 billion last year. By cutting that expense, profits will increase, Gal said.

"We all knew they were under-earning," Gal said. "When you think of the Valeant bid, they forced Allergan to become more efficient."

stuart.pfeifer@latimes.com

Twitter: @spfeifer22

andrew.khouri@latimes.com

Twitter: @khouriandrew

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Albuquerque police: 3 teens held in attacks on homeless, 2 deaths

Three teenagers are being held in Albuquerque, New Mexico, suspected by local police in as many as 50 attacks on homeless people, including beating two men to death over the weekend in what experts say is a growing type of assault against an especially vulnerable group.

Alex Rios, 18, and two boys, ages 16 and 15, were being held in Bernalillo County detention facilities on Monday, after allegedly killing two sleeping men in an open field in an attack so violent it left the victims unrecognizable and sickened some investigators, police spokesman Simon Drobik told the Los Angeles Times. A third man, who helped identify the trio, said he was able to escape.

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FOR THE RECORD

July 22, 8:18 a.m.:  An earlier version of the story stated that there were 78 fatal attacks on homeless people in 2012. The correct number is 88.  

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Rios is facing two murder charges and a variety of other charges. The juveniles are expected to be tried as adults and will face comparable charges, Drobik said. The Times does not identify juveniles unless they are charged as adults.

According to a criminal complaint in the case, the teens said they wanted to look for someone to beat up and possibly rob. One teen told authorities the other was "very angry" over a breakup with his longtime girlfriend.

According to the complaint, one of the teens described in graphic detail how the trio had left a party and "decided to go out and look for someone to beat up." Two of them "repeatedly beat the two male subjects with their hands and feet as well as some bricks and wooden sticks" in an attack that lasted for 20 minutes. "After the attack all three of them returned home and he went to sleep," said the teen who told authorities "afterwards he looked at himself in the mirror and 'saw the devil.' "

"I personally, after reading that complaint, was sick to my stomach because of the nature of the violence and the age of the offenders," Drobik said.

"They are unrecognizable," Drobik said of the victims. "My question is: Who failed these kids? How did it get to this point? It was so violent. I was sick to my stomach. Homicide detectives had a hard time dealing with it."

There has been a growing pattern of violence against the homeless in the past 15 years, according to Michael Stoops, a community organizer for the Washington-based National Coalition for the Homeless. Stoops is the lead author of the group's report, "Vulnerable to Hate: A Survey of Crimes & Violence Committed Against Homeless People in 2013."

According to Stoops, in the 15 years beginning in 1999, there were 1,437 attacks against homeless people resulting in 375 deaths. In 2012, there were 88 attacks and in 2013 there were 109, according to Stoops. In each year, there were 18 deaths. There were about 30% more nonlethal attacks in 2013 than in 2012, he said.

California leads the nation with the most attacks, 33, he said. He also cautioned that all of the numbers are likely to be low because the homeless are reluctant to come forward.

New Mexico had no reported attacks in 2013 and just eight incidents in the 15-year period, Stoops said.

Police in New Mexico said they will investigate the claim that the trio was involved in as many as 50 attacks on the homeless.

"We are trying to verify that number," Drobik said. "We are trying to reach out to the community but all too often the homeless population doesn't want to talk about violence perpetrated against them. I believe there were 50 other people somehow battered. They were boasting and it seems to be a pattern. Now we have a duty to find those 50 people."

According to the complaint, police responded about 8 a.m. on Saturday and found two bodies in a field. They found one victim lying on a mattress and another lying on the ground. Jerome Eskeets, the third victim who said he was able to flee, was hospitalized for his injuries.

Eskeets told police that he recognized one of the "kids" hitting and kicking him as someone who lived in a house nearby, and police found the trio of suspects there. The homeowner said the 15 and 16-year-old were his sons and Rios was a friend who had spent the night, according to the complaint.

The trio covered their faces with black T-shirts before walking over to the victims. According to one of the teens, they all took turns picking up cinder blocks and repeatedly smashing them into the men's faces.

Investigators have not yet confirmed the identities of the dead.

Follow @latimesmuskal for national news.

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Toronto 2014: Reitman, Baumbach and Rock to premiere new films

New movies from veteran directors such as Jason Reitman, Noah Baumbach and Shawn Levy — not to mention the work of some less expected filmmaking types — will make their world premieres at the Toronto International Film Festival when it kicks off this September, organizers said Tuesday.

The Canadian confab, considered a key early stop for autumn hopefuls and awards contenders, made its first round of announcements Tuesday morning.  Highlighting the slate are world premieres of Reitman's "Men, Women & Children," Baumbach's "While We're Young" and Levy's "This Is Where I Leave You."

The list also contained some less expected names. Chris Rock will bring a rare directorial effort, "Top Five" (formerly known as "Finally Famous"), about a comedy actor who tries to go dramatic that stars — who else? — Kevin Hart.

The noted playwright Israel Horovitz will, at 75, make his feature directorial debut with "My Old Lady," a story of an inherited apartment and an unwanted guest; it stars Kevin Kline and another veteran who always seems to be up to new tricks, Maggie Smith.

And the actor Chris Evans, who while trying to save the world as Captain America also found time to direct and star in a new movie, will bring that film, titled "Before We Go," to the festival. The movie is a drama about a woman who misses her train and ends up in an urban underbelly. Alice Eve stars alongside Evans.

Toronto can be a place where some beloved North American filmmakers help kick off their new releases — and, if things go right, a hefty awards campaign to go with it. Those making their bids this year include:

Baumbach, who last year had a breakout with "Frances Ha," will come to the festival with "While We're Young," a story of two contrasting couples and the effect their lives have on one another; Ben Stiller, Naomi Watts, Amanda Seyfried and Adam Driver star.

Reitman's "Men" marks a return for the Toronto favorite after his turn to harder core drama with last year's "Labor Day." Based on Chad Kultgen's controversial novel, Reitman new movie looks at modern sexual mores and how they reverberate through the lives of parents and children. It features a rather unexpected star, Adam Sandler.

Levy, best known for directing the "Night at the Museum" franchise (a third movie comes out later this year), marks a shift to more relationship-based drama with a look at a family that comes together in trying circumstances, based on Jonathan Tropper's novel and starring Jason Bateman.

Levy is not the only studio director mixing things up. Comedy maestro David Dobkin ("Wedding Crashers") will present the world premiere of his coming-home legal dramedy "The Judge" starring Robert Downey Jr. And longtime helmer Ed Zwick, not particularly known for fact-based drama, will premiere "Pawn Sacrifice," his story about Bobby Fischer as the chess champion gets ready to face off against Russian chess grandmaster Boris Spassky.

Though carrying a reputation for awards-ready fare, a number of commercially minded movies will make their world or North American premieres at Toronto as well, including "Good Kill," "Gattaca" director Andre Niccol's story of a drone pilot that reunites him with star Ethan Hawke (that's a North American premiere), and Antoine Fuqua's "The Equalizer," the Denzel Washington-starring revival of Robert Woodward 1980's TV series (that's a world premiere).

Some European and Asian directors will be on the docket as well, with films that include "The Riot Club, the new movie from "An Education" director Lone Scherfig, "Breakiup Buddies" from the Chinese up-and-comer Ning Hao and "Samba," the world premiere of a movie that reunites the directors of the French breakout "Intouchable," Olivier Nakache and Eric Toledano, with actor Omar Sy.

Some other notable world premieres include veteran producer Bill Pohlad directing "Love and Mercy," a fact-based tale of the Beach Boys' Brian Wilson, with Paul Dano and John Cusack playing the singer young and old(er).

Jean-Marc Vallee will bring "Wild," his Reese Witherspoon-starring adaptation of the bestselling survival memoir, to the festival after debuting his "Dallas Buyers Club" there last year.

Screenwriter Dan Gilroy makes his directorial debut "Nightcrawler," an L.A. noir that will see Jake Gyllenhaal return to TIFF after bringing two films to the gathering last year.

Longtime film and TV creator Richard LaGravenese marks his entry to the alternative-romance genre with "The Last Five Years" (the upcoming "The Disappearance of Eleanor Rigby" and "What If" also fit the bill).

And James Gandolfini's final film role will be on display in "The Drop," a crime drama starring Tom Hardy that marks the feature screenwriting debut of Dennis Lehane; it is directed by Michael Roskam ("Bullhead").

A number of indie stalwarts will roll out new movies, including Hal Hartley ("Ned Rifle"), Oren Moverman ("Time Out of Mind") and David Gordon Green, who after studio comedies such as "Pineapple Express" continues his recent return to indie roots with "Manglehorn," a story about an ex-con starring Al Pacino and Holly Hunter (that one is a rare North American premiere).

Toronto this year is implementing a new policy in which films that screen at the Telluride Film Festival will not be eligible to screen in its all-important first four days. Fest director Cameron Bailey instituted the policy to avoid the practice made common in recent years for Telluride to steal the thunder of some of the season's biggest films.

Last year, for instance, awards and commercial favorites such as "Dallas Buyers Club," "Gravity" and "12 Years a Slave" all received prime first-weekend slots at Toronto. But not all premieres are created equal: "Dallas Buyers" was a true world premiere, "12 Years" had a sneak preview at Telluride and "Gravity" played both Venice and Telluride. Neither of the last two films would be eligible to play the first weekend at Toronto this year.

That policy means that there will be more true world premieres at Toronto this year. It also means some films will choose Telluride and won't be there at all.

Not on the list Tuesday, indeed, are some high-profile awards bait some are expecting to make an early September festival debut — Brad Pitt's "Fury" and partner Angelina Jolie's "Unbroken," most notably — but also Jon Stewart's "Rosewater" and Thomas Vinterberg's "Far From the Madding Crowd." Toronto does have another round of big announcements scheduled for next week, so expect a few more dominoes to fall by the time the festival game gets underway.

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D.C. court ruling deals new blow to Affordable Care Act

President Obama's healthcare law was dealt a new blow Tuesday as a federal appeals court ruled that due to a wording glitch in the Affordable Care Act, some low- and middle-income residents are not entitled to receive government assistance to subsidize their insurance.

In a 2-1 vote, a panel of judges on the U.S. Circuit Court of Appeals for the District of Columbia rejected the Obama administration's argument that the problem was triggered by imprecise language in the complex law and that Congress had always intended to offer the subsidies nationwide to low- and middle-income people who bought insurance through one of the state or federal health exchanges created under the law.

As written, the law states that subsidies should be paid to those who purchase insurance through an "exchange established by the state."

That would seem to leave out the 36 states in which the exchanges are operated by the federal government.

Lawyers and congressional staffers who worked on the 2010 law have described the problem as a classic wording glitch in a long and complicated piece of legislation.

One part of the law says that states, which normally regulate insurance, could create exchanges that would help consumers and small businesses shop for coverage. The law also said that if a state failed to establish an exchange, the federal government could step in and run one in its place.

A second part of the law described the subsidies that could be offered to low- and middle-income people to cover the cost of the insurance. This part of the law said these subsidies -- or tax credits -- would be offered for insurance bought on an exchange "established by the state."

Apparently no one noticed the problem until the law was passed. Then, because of fierce political opposition and the 2010 Republican takeover of the House, supporters of the law could not fix the wording through an amendment. Moreover, the administration did not anticipate that most Republican-led states would refuse to create an insurance exchange for their residents.

The Internal Revenue Service adopted a regulation in 2012 that said individuals who qualify for subsidized insurance that is purchased on a government-run exchange may receive a tax credit, "regardless of whether the exchange is established and operated by a state."

But the libertarian Competitive Enterprise Institute filed a lawsuit, Halbig vs. Burwell, on behalf of several plaintiffs, contending that regulation is illegal.

They lost in January before a federal judge who decided Congress intended to offer the insurance subsidies to everyone who qualified.

The administration is expected to appeal the panel's decision to the full 11-member appeals court. In the last year, Obama has added four judges to the D.C. Circuit court, giving Democratic appointees a majority for the first time since the mid-1980s.

If that effort should fail, the administration could appeal to the Supreme Court.

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