A Google-a-Day Puzzle for Jan. 20











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @geekdads on Twitter.



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“Beasts of Southern Wild,” “Les Miz” among Costume Designer Award nominees






LOS ANGELES (TheWrap.com) – Films as diverse as “Beast of the Southern Wild” and “Les Miserables” were among the nominees for the 15th annual Costume Designers Guild Awards announced Thursday by the organization.


Stephani Lewis was nominated for “Beasts” in the contemporary film category, along with Louise Stjernsward for “The Best Exotic Marigold Hotel,” Mark Bridges for “Silver Linings Playbook,” Jany Temime for “Skyfall” and George L. Little for “Zero Dark Thirty.”






Paco Delgado was nominated in the period film group, along with Jacqueline West for “Argo,” Jacqueline Durran for “Anna Karenina,” Joanna Johnston for “Lincoln” and Kasia Walicka-Maimone for “Moonrise Kingdom.”


The winners of the seven competitive awards will be announced at a gala on Tuesday, February 19, at the Beverly Hilton Hotel.


A special Lacoste Spotlight Award will be presented to Anne Hathaway. Producer, writer, comedian and creator of “Saturday Night Live” Lorne Michaels will receive the Distinguished Collaborator Award. Honorary Career Achievement Awards will be presented to costume designers Judianna Makovsky and Eduardo Castro for their outstanding work in film and television.


The other nominees:


Fantasy Film


“Cloud Atlas,” Kym Barret, Pierre-Yves Gayraud;


“The Hunger Games,” Judianna Makovsky;


“Mirror Mirror,” Eiko Ishioka;


“Snow White and the Huntsman,” Colleen Atwood


Contemporary TV Series


“Girls,” Jennifer Rogien;


“Nashville,” Susie DeSanto;


“Revenge,” Jill Ohanneson;


“Smash,” Molly Maginnis;


“Treme,” Alonzo Wilson, Ann Walters


Period/fantasy TV Series


“Boardwalk Empire,” John Dunn, Lisa Padovani;


“Downton Abbey,” Caroline McCall;


“Game of Thrones,” Michele Clapton;


Made for TV Movie or Mini Series


“American Horror Story: Asylum, Season 2,” Lou Eyrich;


“Hatfields & McCoys,” Karri Hutchinson;


“Hemingway & Gellhorn,” Ruth Myers


Commercials


Capital One: Couture, Roseanne Fiedler;


Captain Morgan Black, Judianna Makovsky;


Dos Equis: Most Interesting Man in the World, Julie Vogel


Movies News Headlines – Yahoo! News




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Well: Holly the Cat's Incredible Journey

Nobody knows how it happened: an indoor housecat who got lost on a family excursion managing, after two months and about 200 miles, to return to her hometown.

Even scientists are baffled by how Holly, a 4-year-old tortoiseshell who in early November became separated from Jacob and Bonnie Richter at an R.V. rally in Daytona Beach, Fla., appeared on New Year’s Eve — staggering, weak and emaciated — in a backyard about a mile from the Richter’s house in West Palm Beach.

“Are you sure it’s the same cat?” wondered John Bradshaw, director of the University of Bristol’s Anthrozoology Institute. In other cases, he has suspected, “the cats are just strays, and the people have got kind of a mental justification for expecting it to be the same cat.”

But Holly not only had distinctive black-and-brown harlequin patterns on her fur, but also an implanted microchip to identify her.

“I really believe these stories, but they’re just hard to explain,” said Marc Bekoff, a behavioral ecologist at the University of Colorado. “Maybe being street-smart, maybe reading animal cues, maybe being able to read cars, maybe being a good hunter. I have no data for this.”

There is, in fact, little scientific dogma on cat navigation. Migratory animals like birds, turtles and insects have been studied more closely, and use magnetic fields, olfactory cues, or orientation by the sun.

Scientists say it is more common, although still rare, to hear of dogs returning home, perhaps suggesting, Dr. Bradshaw said, that they have inherited wolves’ ability to navigate using magnetic clues. But it’s also possible that dogs get taken on more family trips, and that lost dogs are more easily noticed or helped by people along the way.

Cats navigate well around familiar landscapes, memorizing locations by sight and smell, and easily figuring out shortcuts, Dr. Bradshaw said.

Strange, faraway locations would seem problematic, although he and Patrick Bateson, a behavioral biologist at Cambridge University, say that cats can sense smells across long distances. “Let’s say they associate the smell of pine with wind coming from the north, so they move in a southerly direction,” Dr. Bateson said.

Peter Borchelt, a New York animal behaviorist, wondered if Holly followed the Florida coast by sight or sound, tracking Interstate 95 and deciding to “keep that to the right and keep the ocean to the left.”

But, he said, “nobody’s going to do an experiment and take a bunch of cats in different directions and see which ones get home.”

The closest, said Roger Tabor, a British cat biologist, may have been a 1954 study in Germany which cats placed in a covered circular maze with exits every 15 degrees most often exited in the direction of their homes, but more reliably if their homes were less than five kilometers away.

New research by the National Geographic and University of Georgia’s Kitty Cams Project, using video footage from 55 pet cats wearing video cameras on their collars, suggests cat behavior is exceedingly complex.

For example, the Kitty Cams study found that four of the cats were two-timing their owners, visiting other homes for food and affection. Not every cat, it seems, shares Holly’s loyalty.

KittyCams also showed most of the cats engaging in risky behavior, including crossing roads and “eating and drinking substances away from home,” risks Holly undoubtedly experienced and seems lucky to have survived.

But there have been other cats who made unexpected comebacks.

“It’s actually happened to me,” said Jackson Galaxy, a cat behaviorist who hosts “My Cat From Hell” on Animal Planet. While living in Boulder, Colo., he moved across town, whereupon his indoor cat, Rabbi, fled and appeared 10 days later at the previous house, “walking five miles through an area he had never been before,” Mr. Galaxy said.

Professor Tabor cited longer-distance reports he considered credible: Murka, a tortoiseshell in Russia, traveling about 325 miles home to Moscow from her owner’s mother’s house in Voronezh in 1989; Ninja, who returned to Farmington, Utah, in 1997, a year after her family moved from there to Mill Creek, Wash.; and Howie, an indoor Persian cat in Australia who in 1978 ran away from relatives his vacationing family left him with and eventually traveled 1,000 miles to his family’s home.

Professor Tabor also said a Siamese in the English village of Black Notley repeatedly hopped a train, disembarked at White Notley, and walked several miles back to Black Notley.

Still, explaining such journeys is not black and white.

In the Florida case, one glimpse through the factual fog comes on the little cat’s feet. While Dr. Bradshaw speculated Holly might have gotten a lift, perhaps sneaking under the hood of a truck heading down I-95, her paws suggest she was not driven all the way, nor did Holly go lightly.

“Her pads on her feet were bleeding,” Ms. Richter said. “Her claws are worn weird. The front ones are really sharp, the back ones worn down to nothing.”

Scientists say that is consistent with a long walk, since back feet provide propulsion, while front claws engage in activities like tearing. The Richters also said Holly had gone from 13.5 to 7 pounds.

Holly hardly seemed an adventurous wanderer, though her background might have given her a genetic advantage. Her mother was a feral cat roaming the Richters’ mobile home park, and Holly was born inside somebody’s air-conditioner, Ms. Richter said. When, at about six weeks old, Holly padded into their carport and jumped into the lap of Mr. Richter’s mother, there were “scars on her belly from when the air conditioner was turned on,” Ms. Richter said.

Scientists say that such early experience was too brief to explain how Holly might have been comfortable in the wild — after all, she spent most of her life as an indoor cat, except for occasionally running outside to chase lizards. But it might imply innate personality traits like nimbleness or toughness.

“You’ve got these real variations in temperament,” Dr. Bekoff said. “Fish can by shy or bold; there seem to be shy and bold spiders. This cat, it could be she has the personality of a survivor.”

He said being an indoor cat would not extinguish survivalist behaviors, like hunting mice or being aware of the sun’s orientation.

The Richters — Bonnie, 63, a retired nurse, and Jacob, 70, a retired airline mechanics’ supervisor and accomplished bowler — began traveling with Holly only last year, and she easily tolerated a hotel, a cabin or the R.V.

But during the Good Sam R.V. Rally in Daytona, when they were camping near the speedway with 3,000 other motor homes, Holly bolted when Ms. Richter’s mother opened the door one night. Fireworks the next day may have further spooked her, and, after searching for days, alerting animal agencies and posting fliers, the Richters returned home catless.

Two weeks later, an animal rescue worker called the Richters to say a cat resembling Holly had been spotted eating behind the Daytona franchise of Hooters, where employees put out food for feral cats.

Then, on New Year’s Eve, Barb Mazzola, a 52-year-old university executive assistant, noticed a cat “barely standing” in her backyard in West Palm Beach, struggling even to meow. Over six days, Ms. Mazzola and her children cared for the cat, putting out food, including special milk for cats, and eventually the cat came inside.

They named her Cosette after the orphan in Les Misérables, and took her to a veterinarian, Dr. Sara Beg at Paws2Help. Dr. Beg said the cat was underweight and dehydrated, had “back claws and nail beds worn down, probably from all that walking on pavement,” but was “bright and alert” and had no parasites, heartworm or viruses. “She was hesitant and scared around people she didn’t know, so I don’t think she went up to people and got a lift,” Dr. Beg said. “I think she made the journey on her own.”

At Paws2Help, Ms. Mazzola said, “I almost didn’t want to ask, because I wanted to keep her, but I said, ‘Just check and make sure she doesn’t have a microchip.’” When told the cat did, “I just cried.”

The Richters cried, too upon seeing Holly, who instantly relaxed when placed on Mr. Richter’s shoulder. Re-entry is proceeding well, but the mystery persists.

“We haven’t the slightest idea how they do this,” Mr. Galaxy said. “Anybody who says they do is lying, and, if you find it, please God, tell me what it is.”

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The Boss: New Leaders Inc. C.E.O. on Giving Children a Chance





I AM the youngest of 10 children in my family, and the only one born in the United States. My father was a municipal judge who fled Haiti during the Duvalier regime. He and my mother settled in the Bedford-Stuyvesant area of Brooklyn, but could not initially afford to bring over my four brothers and five sisters, who stayed in Haiti with relatives.







Jean S. Desravines is the chief executive of New Leaders Inc. in New York.




AGE 41


FAVORITE PASTIMES Karate and taekwondo


MEMORABLE BOOK "How Children Succeed: Grit, Curiosity and the Hidden Power of Character," by Paul Tough






Since he did not speak English fluently, my father worked as a janitor and had a second job as a hospital security guard. He later took a third job driving a taxi at night to pay for my tuition at Nazareth Regional High School, a Roman Catholic school in Brooklyn. My parents were determined that I was going to get a good education, and wanted to keep me away from local troubles, which did claim two of my childhood friends.


Working so many jobs overwhelmed my father. He had a heart attack and died at age 59 behind the wheel of his taxi. My mother found it difficult to cope without my father and moved back to Haiti in 1989 with two of my siblings. I thought I would have to leave school because I had no money for tuition, but Nazareth agreed to pay my way.


I wound up sleeping in my car for almost three months, showering at school after my track team’s practice. I also held down two jobs, both in retailing, and one of my sisters and I rented a basement apartment in East Flatbush.


After graduating from high school in 1990, I attended St. Francis College in Brooklyn, on athletic and academic scholarships. I worked first at the New York City Board of Education, where H. Carl McCall was president, then in his office after he became New York State comptroller. I later worked in the office of Ruth Messinger, then the Manhattan borough president.


I broadened my nonprofit organization experience at the Faith Center for Community Development while earning my master’s of public administration at New York University. I married my high school sweetheart, Melissa, and we now have two children.


In 2001, I began to work toward my original goal — improving educational opportunities for children — and joined the city’s Department of Education. I was later recruited under the new administration of Mayor Michael R. Bloomberg to help start a program as part of his Children First reforms.


In 2003, I became the Department of Education’s executive director for parent and community engagement, and, two years later, senior counselor to Joel I. Klein, then the school chancellor. He taught me a great deal about leadership and how to change the education system. But I began to realize public education could not be transformed without great principals who function like C.E.O.’s of their schools.


So in 2006 I returned to the nonprofit world, to New Leaders, a national organization founded in 2000 to recruit and develop leaders to turn around low-performing public schools. Initially, I managed city partnerships and expanded our program in areas like New Orleans and Charlotte, N.C.


In 2011, I became C.E.O., and revamped our program to produce even stronger student achievement results, streamlined our costs, diversified funding sources and forged new partnerships. We have an annual budget of $31.5 million, which comes from foundations, businesses, individuals and government grants, and a staff of about 200 people at a dozen locations.


We have a new partnership with Pearson Education to provide greater learning opportunities to public school principals. The goal of these efforts is to have a great principal in each of our nation’s public schools — to make sure that, just as I did, all kids get a chance at success.


As told to Elizabeth Olson.



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A backyard nuclear shelter? Yes, paranoia does sell








One sterling quality of American businesses is that they'll try to make money from anything.


Paranoia, for instance. So say hello to Ron Hubbard, the owner of Montebello-based Atlas Survival Shelters, which converts huge corrugated metal tubes up to 50 feet long into fully equipped, all-the-comforts-of-home underground shelters at a price of up to about $78,000 each, not including shipping and interment.


You may have spotted the Atlas shop from the 5 Freeway as you're heading into downtown. There's a corrugated tube out front, painted bright yellow and looking like a tipped-over corn silo. High on the exterior wall facing the road is a banner declaring that the shelters offer protection from nuclear blasts, nuclear fallout, EMP (that's electromagnetic pulses, which can foul electrical systems), solar flares, mobs, looters, earthquakes and chemical warfare. If there's anything left off that list, it's probably not worth worrying about.






"People who buy my shelters are not radical crazy people," Hubbard told me recently as he guided me around the Montebello shop. "I get maybe three crazy calls a year. They're practical people."


Hubbard, 50, is a big Texan with a toothy grin and the friendly enthusiasm of someone trying to sell you something. He'll expound cheerily on the basic practicality, not to mention the sheer joy, of having a 40-foot corrugated steel drum buried 20 feet deep in your yard and tricking it out with a big-screen TV and Internet connection for those long days and nights hunkered down against nuclear blasts, the Chinese army or domestic looters. His shelters also offer such necessities as microwave ovens, space for a year's worth of provisions and high-grade air filtration.


"We don't know where our country will go," he said. "If we're going to be attacked, my shelters will protect you from Sarin gas or super flu. If we go bankrupt and we don't pay China, that could be the start of World War III. We could attack Iran or back Israel, and that could start a war. This is insurance. Why do we carry insurance on our homes? Just. In. Case."


Hubbard doesn't describe these dystopias as though he actually believes in them, but rather with the air of a salesman trying out any buzzword that might trigger a deal. During the couple of hours we were together, he described his products serially as underground condos, second homes, combination second homes and bomb shelters, man caves, man caves that happen to be bombproof, weekend cabins and hunting cabins.


Atlas Survival Shelters hasn't turned a significant profit yet. Hubbard said it made no money in the start-up year of 2011, was modestly in the black last year and may show a profit for 2013. But the business is unusual enough that it has won featured spots on several reality shows. An episode on A&E Network's "Shipping Wars" shows a team of moving experts trying to figure out how to transport a 32-foot shelter on their flatbed truck. During the episode Hubbard regales them with the virtues of the unit's escape-hatch feature, a second portal that opens only from the inside, in case of an attack.


"Somebody sees you going down; while they're trying to smoke you out, you're going to the back tunnel, you're gonna come up through an escape hatch that's hidden underground, you can shoot 'em in the back. Pretty cool, huh?" (Remarked one of the show's plainly creeped-out female cast members, "Remind me to never pay him a visit.")


More recently, Atlas was featured on an episode of the National Geographic Channel series "Doomsday Preppers," which chronicles the lifestyles of the scared and nervous. Hubbard's customer is described in network publicity as Brian Smith, a father of 12 "preparing for a total collapse of the U.S. monetary system."


Hubbard got into the underground shelter business a little more than a year ago after years of selling wrought-iron doors from the same location, operating as Hubbard Iron Doors. That business was brought low by the poor economy and cheap Chinese knockoffs, Hubbard says. It filed for bankruptcy in 2011; Hubbard says it's now owned and run by his brother, though the two companies share space with each other.


While he was casting about for a new business, Hubbard said, he happened across a brochure for Radius Engineering International, a Texas company that manufacturers fiberglass shelters mostly for business, government and military buyers. But the Radius products were expensive — they run from $150,000 up to millions, depending on the design and capacity. Hubbard thought he could do better on price while turning out a more appealing hideaway.


He's still trying to get a feel for the market, however. With his six or seven full-time workers, he can turn out one shelter a week. Orders, he said, come in at somewhere between one a month and one a week, more in periods of publicity-driven paranoia — during the run-up to the supposed Mayan apocalypse at the end of December, he said, calls jumped up to one a day.


The joke was on the callers, however, because Hubbard's six-week lead time meant that no one who called because they had just seen a Mayan feature on TV could get a shelter built, much less on site and in the ground, in time to beat the end of the world. Luckily, the apocalypse was a bust.


And for all that he plays up Armageddon in all its possible varieties in his sales pitch, doomsday may not be that great a marketing tool. "If I just sold bomb shelters, there would be about this big of a market." Hubbard holds his thumb and forefinger a half-inch apart. "But if I say, 'man cave,' 'wine cellar,' 'getaway,' then I get the recreational shelter owner too."


He says most of his calls come from retired military men, doctors, lawyers and business owners — possibly because the latter are among the few categories of buyers with the wherewithal to plunk down $60,000 or $70,000 for a man cave/bomb shelter, plus installation.


The size of the overall shelter market is unclear, in part because its promoters make a point of secrecy about whom they sell to and where. Privately held Radius has claimed to sell more than $30 million worth of shelters a year, but you have to take their word for it.


Then there are firms like Vivos Group, a Del Mar, Calif., company that claims to have started survivalist communities in three states — but they appear to be sort of co-op arrangements in which you have to apply to be considered for "co-ownership" of your refuge community. Once you're chosen, they'll let you know where to go when the end times come.


"This is just the threshold of something that's going to become common," Hubbard said, putting a hopeful spin on his words as though aware that paranoia may be peaking today, but gone tomorrow. "So I say, don't buy a bomb shelter. Buy an underground cabin, and enjoy it."


Michael Hiltzik's column appears Sundays and Wednesdays. Reach him at mhiltzik@latimes.com, read past columns at latimes.com/hiltzik, check out facebook.com/hiltzik and follow @latimeshiltzik on Twitter.






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A Google-a-Day Puzzle for Jan. 19











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @geekdads on Twitter.



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John Powers, author who wrote about growing up Catholic, dies






(Reuters) – John Powers, a U.S. author and motivational speaker who wrote about his experiences growing up Catholic in Chicago including the novel “Do Black Patent Leather Shoes Really Reflect Up?” has died, his family said on Thursday.


Powers, 67, died late Wednesday of natural causes at his home in Lake Geneva, Wisconsin, his daughter Jacey Powers said.






A product of a working-class neighborhood, Powers wrote what he called humorous social portraits in columns to novels, a musical based on “Black Patent Leather Shoes” and more recently wrote and performed one-man shows.


“He cherished every moment and lived with tremendous passion and motivated others to do the same,” Jacey Powers said.


Powers lived the last 25 years in Lake Geneva, spending almost all of his time writing on the front porch, she said.


“He had just finished rewriting his one-man show and wanted to put it up,” Jacey Powers said. “(He) was always looking for new ways to reinvent himself and to find the next challenge and to live life better.”


A self-described “horrible” student at a Catholic high school – his motivational speaking website says he graduated in the bottom 3 percent of his class – he liked to say he was the only student in school history to fail music appreciation.


Powers went on to earn a bachelor’s degree from Loyola University Chicago, and a master’s and doctorate from Northwestern University and became a college professor himself for six years.


Other books by Powers include “The Last Catholic in America” and “The Unoriginal Sinner and the Ice-Cream God.”


Visitation and services are planned for Sunday at The Chapel on the Hill in Lake Geneva.


Powers is survived by his wife, JaNelle Powers, and daughters Jacey Powers and Joy Powers.


(Reporting by David Bailey in Minneapolis; Editing by Lisa Shumaker)


Celebrity News Headlines – Yahoo! News





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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control



Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”


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DealBook: Despite Improving Profits, Morgan Stanley's Path Is Uncertain

8:40 p.m. | Updated

Morgan Stanley has taken aggressive action to bolster profit. Over the last year, the Wall Street bank has cut thousands of employees, sold costly assets and retooled major businesses.

Those efforts worked. In the fourth quarter, Morgan Stanley reported earnings of $481 million, in contrast to a loss of $275 million in 2011. Profit was equally strong for the year.

But the path to future growth is less clear. While the financial firm can find other ways to cut costs, its core operations face significant challenges, from both internal and external forces. Reflecting those issues, revenue was flat last year, excluding charges related to its debt.

“They are doing everything they can to boost returns,” said Glenn Schorr, an analyst at the Japanese bank Nomura. “But given the environment and the state of their franchise, they can only do so much.”

Investors are assessing the progress versus the prospects.

After Morgan Stanley beat analysts’ expectations, the bank’s shares increased nearly 8 percent, to close at $22.38 on Friday. Morgan Stanley’s stock is up nearly 50 percent since early 2012.

“The company has been steadily chipping away at areas of investor concern, and has shown evidence of that progress,” Roger Freeman, a Barclays analyst, wrote in a note to investors.

Still, investors don’t value the investment bank as highly as some of its peers.

Morgan Stanley is trading at approximately 70 percent of its book value, a crucial financial measure that refers to the liquidation value of a company’s assets if it were forced to sell everything. Goldman, in contrast, is trading at book value.

More than four years after the financial crisis, Morgan Stanley has emerged as a much stronger, albeit smaller, bank.

After getting badly bruised during the crisis, Morgan Stanley, under the leadership of James P. Gorman, the chief executive, has moved to remake itself. He has diversified operations, emphasizing less risky businesses like wealth management.

That group was a particular bright spot. In the latest quarter, wealth management, with its 16,780 financial advisers, posted decent revenue growth. Pretax profit margin rose to 17 percent, up from 7 percent a year ago. That trumped the firm’s internal goals of 15 percent.

Investment banking, too, showed signs of strength. The group posted revenue of $1.23 billion in the fourth quarter, up 26 percent from the previous year.

The bank has also cut expenses significantly to help drive profitability. In 2012, Morgan Stanley reduced its head count by 7 percent, to 57,061 employees. It laid off 1,600 people this month.

The firm has also been bringing its pay levels down modestly. The firm’s compensation ratio, excluding certain charges, came in at roughly 51 percent, down from 57 percent a year ago.

Such efforts will most likely continue. On Friday, the bank said it might cut expenses by as much as $1.6 billion over the next two years.

Mr. Gorman called this quarter “pivotal,” on Friday. “I am confident we are on the path to increasing shareholder value that will be evident regardless of the macro environment,” he said in a statement.

Even so, the latest results underscored the growing gap between the bank and its rivals.

Revenue was flat for the quarter at Morgan Stanley, while it increased by 19 percent at Goldman Sachs during the same period. Excluding charges related to its debt, Morgan Stanley’s return on equity, a measure of profitability, was 5 percent. That compares with 10.7 percent at Goldman. To simply cover its debt expenses and other capital costs, Morgan Stanley needs to achieve a return on equity closer to 10 percent.

The firm’s problem child is the fixed income department.

Fourth-quarter revenue from fixed income sales and trading, headed by Ken deRegt, was $811 million, excluding the charges related to the firm’s debt. This was well below analysts’ forecasts. The bank was hurt by poor results in commodities trading, Mr. Gorman said in an interview on CNBC. He said it was a “terrible quarter,” citing factors like Hurricane Sandy, adding that it was one of the worst for the commodities business since 1995.

Despite its successes, Morgan Stanley faces a tough road.

The bank, which has had its credit rating cut deeper than its rivals, is also adjusting to a new regulatory environment. It now has to put up more capital against its operations, forcing the bank to leave certain businesses, reducing profitability.

Morgan Stanley is also trying to build market share in less-capital-intensive businesses like interest rates trading. But it is a highly competitive area, with lower margins.

“They have made some clear progress, but still have their work cut out for them in fixed income,” said Mr. Schorr of Nomura.

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Algeria raid puts a lawless region in the spotlight









CAIRO — The offensive by Algerian soldiers to free hostages at a natural gas complex has refocused world attention on the dangers of a lawless desert region bristling with gunrunners, smugglers and a virulent strain of Islamic ideology.


Coming days after French airstrikes on Islamist militants in neighboring Mali, the raid Thursday killed or wounded many militants and an unspecified number of Western and Algerian hostages, the Algerian government said. Officials in Algiers, the capital, said late in the evening that they had wrapped up the assault on the compound near the Algerian-Libyan border deep in the Sahara desert.


"The operation resulted in the neutralization of a large number of terrorists and the freeing of a considerable number of hostages," Communications Minister Mohamed Said Belaid told state-run media. "Unfortunately we deplore also the death of some.... We do not have final numbers."





The Algerian news agency said 45 hostages, including Americans, escaped the site. But later Algerian media reports indicated that only four to six foreign hostages were freed and that there were a number of "victims."


A Mauritanian news organization quoting a militant spokesman suggested that gunfire from Algerian military helicopters struck two vehicles attempting to flee the compound, killing 35 foreigners and 15 kidnappers, including the militant group's commander. The differing accounts were impossible to confirm or reconcile and epitomized a chaotic day that appeared to raise questions from Western leaders over the operation's planning.


In addition to as many as seven Americans, captives included Algerians, Britons, Japanese, Norwegians and other foreigners.


The army raid marked a surprising twist in a drama that had raised fears of a long siege and highlighted the revived Islamist extremism in the region.


To the west of Algeria lies Mali, where Islamist rebels have intensified their fight in recent days to overthrow the government, prompting French military action backed by American logistical support. To the east lie Tunisia and Libya, where revolutions beginning in 2010 overthrew President Zine el Abidine ben Ali in Tunis and Moammar Kadafi in Tripoli.


Since then, militant and radical Islamist groups, including Algeria's Al Qaeda in the Islamic Maghreb, have become more emboldened amid the political upheaval of new governments. Western countries have grown increasingly concerned that North Africa could become a seedbed for international terrorism.


The hostage drama unfolded in a gas field known as In Amenas, close to the border with Libya, a country of particular concern to Algeria. Extremists and weapons looted from Kadafi's military and police have flowed across the border for months.


Farther east, Egyptian authorities are concerned that militants from Algeria and Libya have joined terrorist cells in the Sinai Peninsula along the Israeli border.


It was the strife in Mali, however, that apparently led to the militant takeover of the Western-run gas compound Wednesday. The Algerian militants, who belonged to an Al Qaeda-linked group called the Signed-in-Blood Battalion, said they were acting in retaliation for French airstrikes against advancing Malian rebels. They reportedly threatened to blow up the plant if Algerian commandos attempted to free the hostages.


After the compound was seized by the militants, hundreds of Algerian soldiers firing warning shots ringed the remote compound as helicopters skimmed overhead. The militants asked for safe passage to Libya, with the hostages accompanying them. Algerian officials, who over the years have cracked down harshly on Islamic radicals, said they would not consider such requests.


"The authorities do not negotiate, no negotiations," Interior Minister Daho Ould Kabila said on state television. "We have received their demands, but we didn't respond to them."


The Algerian government was under pressure from the U.S., Britain and other countries whose nationals were taken hostage. But the raid caught some by surprise and appeared to irritate some Western leaders. British Prime Minister David Cameron's office said he would have preferred to have been told in advance of the operation.


"I think we should be prepared for the possibility of further bad news, very difficult news in this extremely difficult situation," Cameron said.


The State Department declined to provide details of the Algerian offensive, saying it could endanger hostages, some of whom were reportedly forced to wear explosives-laden belts.


White House spokesman Jay Carney told reporters, "We are certainly concerned about reports of loss of life and we are seeking clarity from the government of Algeria."


The Algerians are "used to fighting terrorism, in their own, quite hard way," said Mathieu Guidere, a professor of "Islamology" at the University of Toulouse in France and author of "The New Terrorists." "It's likely the deaths at the petrol base were as a result of the assault by the Algerian security forces."


Reports have suggested that as many as 41 foreigners were being held along with scores of Algerians. An Irishman who was among them contacted his family to say he had been freed.


The natural gas field complex at In Amenas, which supplies Europe and Turkey, is a joint venture operated by BP; Statoil, a Norwegian firm; and Sonatrach, the Algerian national oil company.


The assault on the compound dramatically changed the dynamics of Algeria's decades-long campaign against radicals. Militants had rarely, if ever, targeted oil and gas operations, even during the 1990s civil war, when few rules applied amid beheadings and massacres. Their seizure of the compound was a direct strike at the government and the nation's economic and political stability.


The civil war in Algeria, a country rich in oil and gas and with a spectacular coast and vast deserts, killed more than 100,000 people. The conflict began when the military, fearing Islamists would come to power, shut down parliamentary elections and the country collapsed into turmoil.


The government offered an amnesty program more than a decade ago. Thousands of militants accepted, but hard-core members of what had become Al Qaeda in the Islamic Maghreb resisted. The group publicly joined Al Qaeda in 2006, sending recruits to fight U.S. forces in Iraq while expanding its suicide bombings and kidnappings of businessmen and Westerners for ransom in Algeria.


AQIM and other Algerian radicals are heavily armed and fluid, shifting much of their attention last year to neighboring Mali, where they joined rebels and Islamists in a war to overthrow the government. Mali has attracted extremists from across Africa and the Middle East who are attempting to exploit the country's instability to create an Islamist state.


Two top radicals are believed to be connected to the gas field seizure: Abdelmalek Droukdel, AQIM's leader, who has called for militants to target France over its intervention in Mali, and Mokhtar Belmokhtar, a mercurial, one-eyed smuggler and kidnapper who runs the Signed-in-Blood Battalion, an AQIM splinter group that claims to have carried out Wednesday's predawn attack.


The hostages at the complex "who managed to reach loved ones abroad said the terrorists that captured them have Egyptian, Tunisian, Libyan accents," said an Algerian risk-assessment analyst who asked to remain anonymous because of the sensitivity of his job.


jeffrey.fleishman@latimes.com


Special correspondents Kim Willsher in Paris and Reem Abdellatif in Cairo and Times staff writers Henry Chu in London and Paul Richter in Washington contributed to this report.





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