S&P 500 flat as growth concerns temper bank earnings

NEW YORK (Reuters) - The S&P 500 was little changed on Wednesday as a bounceback in Apple shares and gains in bank stocks offset concerns about global economic growth.


Goldman Sachs shares hit their highest level since May 31, 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses. JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.


JPMorgan shares edged up 0.4 percent at $46.55 and Goldman was up 4.1 percent to $141.19.


They were among the first big banks to report results and helped to lift estimates for S&P 500 corporate earnings slightly to a 2.2 percent gain, Thomson Reuters data showed.


"Pretty solid numbers from both JPMorgan and Goldman Sachs are putting a lot of momentum behind the financials, with a lot more names to report this week. But I think that's helping to put a better bid to the market overall," said Michael James, senior trader at Wedbush Morgan in Los Angeles.


Apple rebounded after three days of losses, making the Nasdaq outperform the S&P 500 and Dow.


"There could not have been more negativity around Apple going into today. So was it due for an oversold bounce on a trading basis? Absolutely," James said.


The Dow Jones industrial average <.dji> was down 25.31 points, or 0.19 percent, at 13,509.58. The Standard & Poor's 500 Index <.spx> was up 1.01 points, or 0.07 percent, at 1,473.35. The Nasdaq Composite Index <.ixic> was up 12.04 points, or 0.39 percent, at 3,122.82.


A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.


Apple shares were up 4.6 percent at $508.48. The stock closed below $500 on Tuesday for the first time since February.


Shares of Dow component Boeing fell 3.8 percent to $74.05 and was the biggest drag on the Dow, on concerns about its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.


U.S. economic data showed U.S. consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.


Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.


(Additional reporting by Chuck Mikolajczak; Editing by Nick Zieminski and Kenneth Barry)



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Dozens held after Islamists attack Algerian gas field


ALGIERS (Reuters) - Islamist militants attacked a gas field in Algeria on Wednesday, claiming to have kidnapped up to 41 foreigners including seven Americans in a dawn raid in retaliation for France's intervention in Mali, according to regional media reports.


The raiders were also reported to have killed three people, including a Briton and a French national.


An al Qaeda affiliated group said the raid had been carried out because of Algeria's decision to allow France to use its air space for attacks against Islamists in Mali, where French forces have been in action against al Qaeda-linked militants since last week.


The attack in southern Algeria also raised fears that the French action in Mali could prompt further Islamist revenge attacks on Western targets in Africa, where al Qaeda in the Islamic Maghreb (AQIM) operates across borders in the Sahara desert, and in Europe.


AQIM said it had carried out Wednesday's raid on the In Amenas gas facility in OPEC member Algeria, Mauritania's ANI news agency reported.


The Algerian interior ministry said: "A terrorist group, heavily armed and using three vehicles, launched an attack this Wednesday at 5 a.m. against a Sonatrach base in Tigantourine, near In Amenas, about 100 km (60 miles) from the Algerian and Libyan border."


"The Algerian authorities will not respond to the demands of the terrorists and will not negotiate," Interior Minister Daho Ould Kablia was quoted as saying by official news agency APS.


The gas field is operated by a joint venture including BP, Norwegian oil firm Statoil and Algerian state company Sonatrach.


ARMED MEN


BP said armed men were still occupying facilities at the gas field, which produces 9 billion cubic meters of gas a year(160,000 barrels of oil equivalent per day), more than a tenth of the country's overall gas output, and 60,000 barrels a day of condensate.


"The site was attacked and occupied by a group of unidentified armed people at about 0500 UK time. Contact with the site is extremely difficult, but we understand that armed individuals are still occupying the In Amenas operations site," it said.


A spokesman for BP said it usually had fewer than 20 people working at the site but would not be drawn on whether there were any talks with the hostage takers. He said: "Obviously we are doing everything we can to make sure our people are okay."


APS said a Briton and an Algerian security guard had been killed and seven people were injured. A French national was also killed in the attack, a local source said.


Also among those reported kidnapped by various sources were five Japanese nationals working for the Japanese engineering firm JGC Corp, a French national, an Austrian, an Irishman, and a number of Britons.


The U.S. State Department said it believed some U.S. citizens were also among the hostages, while Norwegian Prime Minister Jens Stoltenberg said 13 employees of Statoil, a minority shareholder in the gas venture, were being held.


A member of an Islamist group styling itself the "Blood Battalion" was quoted by Mauritanian media as saying that five of the hostages were being held at the gas facility and 36 were in a housing area. APS said the Islamist raiders had freed Algerians working at the gas facility, though Regis Arnoux, head of French company CIS Catering, told JDD weekly newspaper that 150 Algerian employees of his company were being held at the site.


"The operation was in response to the blatant interference by Algeria and the opening of its air space to French aircraft to bomb northern Mali," the Islamist spokesman told Mauritania's ANI news agency.


ANI, which has regular direct contact with Islamists, said that fighters under the command of Mokhtar Belmokhtar were holding the foreigners.


Interior Minister Kablia also told APS that Belmokhtar was leading the group of about 20 individuals, whom he said were not from Mali, Libya or "any other neighboring state".


Belmokhtar, dubbed by French intelligence as "the uncatchable", for years commanded al Qaeda fighters in the Sahara before setting up his own armed Islamist group late last year after an apparent fallout with other militant leaders.


The Algerian army was in the area of the gas facility, according to French and Algerian sources.


ANI reported that the Islamists said they were surrounded by Algerian forces and warned that any attempt to free the hostages would lead to a "tragic end". One of the hostage takers told ANI that the perimeter of the site had been mined.


SECURITY IMPLICATIONS


The attack was the first time in years that Islamist militants are known to have launched an attack on an Algerian energy facility.


The attack could have implications for security across the whole of Algeria's energy sector, which supplies about a quarter of Europe's natural gas imports and exports millions of barrels of crude oil each year.


Such an attack would require a large and heavily armed insurgent force with a degree of freedom to move around, all elements that al Qaeda has not previously had.


However, the conflict in neighboring Libya in 2011 changed the balance of force. Security experts say al Qaeda was able to obtain arms, including heavy weapons, from the looted arsenals of former leader Muammar Gaddafi.


The five Japanese work for the engineering firm JGC Corporation, Jiji news agency reported, quoting company officials. JGC has a deal with Sonatrach-BP-Statoil Association for work in gas production at In Amenas.


A reporter for Japan's NHK television managed to call a JGC worker in Algeria.


The worker said he got a phone call from a colleague at the gas field. "It was around 6 a.m. this morning. He said that he had been hearing gunshots for about 20 minutes. I wasn't able to get through to him since."


French troops launched their first ground operation against Islamist rebels in Mali on Wednesday in an action to dislodge from a strategic town al Qaeda-linked fighters who have resisted six days of air strikes.


(Additional reporting by Catherine Bremer and John Irish in Paris, Laurent Prieur in Nouakchott, Andrew Osborn in London, Balazs Koranyi in Oslo, Antoni Slodkowski in Tokyo, Raissa Kasolowsky in Abu Dhabi and Christian Lowe in Warsaw; Editing by Giles Elgood and Will Waterman)



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Facebook search to generate revenue, no rival to Google: analysts






(Reuters) – Facebook Inc’s new search tool has strong potential to generate revenue for the social networking company, though it is unlikely to challenge Google Inc as the world’s dominant search engine, Wall Street analysts said on Wednesday.


Facebook’s “graph search” tool, rolled out on Tuesday, lets its more than 1 billion users trawl their network of friends to find everything from restaurants to movie recommendations and is the company’s biggest foray into online search.






Graph search contains some category suggestions that can be easily monetized, BofA Merrill Lynch analysts said in a note.


“It should be easy to incorporate commercial search results via Facebook’s partnership with Bing,” they added.


Facebook currently has a partnership with Microsoft Corp, whose Bing search engine provides search results for external websites. Microsoft also integrates certain Facebook results into its Bing search results.


BofA Merrill Lynch analysts estimated Facebook could add $ 500 million in annual revenue if it can generate just one paid click per user per year, and raised its price target on the stock by $ 4 to $ 35.


Facebook’s shares were flat at $ 30.10 in early trading on Wednesday. They have jumped about 50 percent since November to Tuesday’s close after months of weakness following its bungled Nasdaq listing in May.


However, analysts at J.P. Morgan Securities said the lack of a timeline for the possible launch of graph search on mobile devices may weigh on the tool’s prospects.


The success of the graph search, which will rely heavily on local information, depends on Facebook launching a mobile product, the analysts said. Half of all searches on mobile devices seek local information, according to Google.


Graph search also lacks the depth of review content of Yelp Inc, the analysts added.


Pivotal Research Group analyst Brian Wieser said monetization potential would be largely determined by Facebook’s ability to generate a significant portion of search query share volumes and he expects that quantity to be relatively low.


“Consumers are likely to continue prioritizing other sources, i.e. Google. Advertisers would consequently only use search if they can, or are perceived to, satisfy their goals efficiently with Facebook,” Wieser said.


NO GOOGLE KILLER


Analysts mostly agreed that Facebook’s search tool was unlikely to challenge Google’s dominance in web search at least in the near term.


“As of now, we do not see Graph Search as a threat to Google Web search. Looking forward, Facebook Graph searches could be competitive with certain categories of Google searches, such as Places and Maps,” BofA Merrill said.


Internet search, social networking tools and e-commerce are among the biggest weapons that companies such as Facebook, Google and Amazon.com Inc have in their battle for supremacy. A successful combination of the three could win the day for them.


Google has been trying to combine social networking and search for more than a year by integrating Google+ into its search engine.


“Overall, Graph Search offers users a unique view to information not available on Google, but does not replace Google. We view the relationship between Facebook Graph Search and Google as both competitive and complementary,” Piper Jaffray & Co analysts said.


The brokerage said users looking to buy a cellphone, for example, could search for friends’ reviews on Facebook and expert reviews on Google.


(Reporting by Sayantani Ghosh in Bangalore; Editing by Sriraj Kalluvila)


Social Media News Headlines – Yahoo! News





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Holly Madison in Doghouse with Homeowners Association















01/15/2013 at 03:30 PM EST







Holly Madison and dog Louis


Denise Truscello/WireImag


Holly Madison is having a little trouble getting her neighbors to think pink.

The former Playboy pin-up – and current mom-to-be – is moving out of her home in the Rancho Circle neighborhood of Las Vegas after repeated complaints from the homeowners association over her pink doghouse, which is human-sized and built to accommodate her three pups, Louis, Napoleon and Josephine.

"When I went over it with my contractor, he consulted the HOA on all their restrictions and whatnot," she told Las Vegas Weekly. "He told me it has to match the architecture of the house, so I did that with the roof because … it's possible you could see the roof from the street, but you can't see any of it from the street, actually."

In addition, the structure's creative color has also been a point of conflict for the association, which has repeatedly fined the star over it – not that Madison's taking their actions lying down.

"It's a hundred dollars a month," she said. "I haven't been paying it. I just keep sending them nasty letters."

Luckily for Madison, when the doghouse was constructed, it was designed to be movable.

"Yes, I'm going to bring it," she replied when asked if it will accompany her to her newest home.

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Vegas woman who couldn't stop growing dies at 34


LAS VEGAS (AP) — A Las Vegas woman who suffered a rare disorder that made it impossible for her to stop growing has died. Tanya Angus was 34.


Karen Strutynski says her daughter stood 7 feet 2 inches and weighed about 400 pounds when she died Monday, apparently from a tear in her heart.


Angus was 5 feet 8 as a teenager and had modeled on runways before she was diagnosed with acromegaly, or gigantism, at age 22.


She grew so much over the next decade that her rings had to be modified, she had to use custom utensils, and she got around in a motorized wheelchair.


Strutynski says her daughter was sometimes depressed about the condition but also saw it as a gift from God and an opportunity to help others with the disorder.


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Wall Street flat as Apple down again but retailers rise

NEW YORK (Reuters) - Stocks were nearly flat on Tuesday as tech heavyweight Apple dragged on the market as it extended losses into a third day, while economic data helped retailers advance.


Apple was the biggest weight on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Shares were down 3 percent at $486.50 after hitting a session low of $483.84, its lowest level since February.


Retailer stocks advanced and helped to minimize the market's decline after a government report that retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. However, a separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.


"It's trying to push its way up in here, the question is, has Apple stabilized maybe a little bit down here? The retail sales numbers were really good, much better than expected this morning and that is helping the whole retail group," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"The bulls are clearly trying to take control of this market and hold it up here. There is clearly buying on any of the dips."


American Eagle Outfitters Inc gained 4.4 percent to $20.51 and Gap Inc rose 3.3 percent to $32.44. The Morgan Stanley retail index <.mvr> climbed 1.5 percent.


The Dow Jones industrial average <.dji> was up 21.56 points, or 0.16 percent, at 13,528.88. The Standard & Poor's 500 Index <.spx> was up 0.98 points, or 0.07 percent, at 1,471.66. The Nasdaq Composite Index <.ixic> was down 8.25 points, or 0.26 percent, at 3,109.26.


Also keeping investors on edge was the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.


Resolving the debt ceiling debate is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.


An expected lackluster earnings season, too, kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.


Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock fell 1.7 percent to $40.33 on worries that growth in orders was slowing. The PHLX housing sector index <.hgx> declined 0.3 percent.


(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)



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France to stay in Mali until stability restored


BAMAKO/DUBAI (Reuters) - France will end its intervention in Mali only once stability has returned to the West African country, French President Francois Hollande said on Tuesday, raising the prospects of a costly, drawn-out operation against al Qaeda-linked rebels.


Paris has poured hundreds of soldiers into Mali and carried out air raids since Friday in the northern half of the country, which Western and regional states fear could become a base for attacks by Islamist militants in Africa and Europe.


Thousands of African troops are due to take over the offensive but regional armies are scrambling to accelerate the operation - initially not expected for months and brought forward by France's bombing campaign aimed at stopping a rebel advance on a strategic town last week.


"We have one goal. To ensure that when we leave, when we end our intervention, Mali is safe, has legitimate authorities, an electoral process and there are no more terrorists threatening its territory," Hollande told a news conference during a visit to the United Arab Emirates.


Foreign Minister Laurent Fabius, accompanying Hollande, said the offensive against the Malian rebels could take some time, and the current French level of involvement could last weeks. Elections, however, would take months to organize.


French aircraft earlier hit rebels with fresh air strikes and a column of dozens of French armored vehicles rumbled into the dusty riverside capital of Bamako overnight, bringing to about 750 the number of French troops in Mali.


Paris has said it plans to deploy 2,500 soldiers in its former colony to bolster the Malian army and work with the intervention force provided by West African states.


West African defense chiefs met in Bamako on Tuesday to approve plans for speeding up the deployment of 3,300 regional troops, foreseen in a United Nations-backed intervention plan to be led by Africans.


Nigeria pledged to deploy soldiers within 24 hours and Belgium said it was sending transport planes and helicopters to help, but West Africa's armies need time to become operational.


Mali's north, a vast and inhospitable area of desert and rugged mountains the size of Texas, was seized last year by an Islamist alliance combining al Qaeda's north African wing AQIM with splinter group MUJWA and the home-grown Ansar Dine rebels.


Any delay in following up on the French air bombardments of Islamist bases and fuel depots with a ground offensive could allow the insurgents to slip away into the desert and mountains, regroup and counter-attack.


The rebels, who French officials say are mobile and well-armed, have shown they can hit back, dislodging government forces from Diabaly, 350 km (220 miles) from Bamako on Monday.


Residents said the town was still under Islamist control on Tuesday despite a number of air strikes that shook houses.


An eye witness near Segou, to the south, told Reuters he had seen 20 French Special Forces soldiers driving toward Diabaly.


Malians have largely welcomed the French intervention, having seen their army suffer a series of defeats by the rebels.


"With the arrival of the French, we have started to see the situation on the front evolve in our favor," said Aba Sanare, a resident of Bamako.


QUESTIONS OVER READINESS


Aboudou Toure Cheaka, a senior regional official in Bamako, said the West African troops would be on the ground in a week.


The original timetable for the 3,300-strong U.N.-sanctioned African force - to be backed by western logistics, money and intelligence services - did not initially foresee full deployment before September due to logistical constraints.


Senegal, Burkina Faso, Niger, Nigeria and Guinea have all offered troops. Col. Mohammed Yerima, spokesman for Nigeria's defense ministry, said the first 190 soldiers would be dispatched within 24 hours.


But Nigeria, which is due to lead the mission, has already cautioned that even if some troops arrive in Mali soon, their training and equipping will take more time.


Sub-Saharan Africa's top oil producer, which already has peacekeepers in Sudan's Darfur and is fighting a bloody and difficult insurgency at home against Islamist sect Boko Haram, could struggle to deliver on its troop commitment of 900 men.


One senior government adviser in Nigeria said the Mali deployment was stretching the country's military.


"The whole thing's a mess. We don't have any troops with experience of those extreme conditions, even of how to keep all that sand from ruining your equipment. And we're facing battle-hardened guys who live in those dunes," the adviser said, asking not to be named because of the sensitivity of the subject.


FRENCH LINING UP SUPPORT


France, which has repeatedly said it has abandoned its role as the policeman of its former African colonies, said on Monday that the U.S., Canada, Denmark and Germany had also offered logistical support.


Fabius has said Gulf Arab states would help the Mali campaign while Belgium said on Tuesday it would send two C130 transport planes and two medical helicopters to Mali following a request from Paris.


A meeting of donors for the operation was expected to be held in Addis Ababa at the end of January.


Security experts have warned that the multinational intervention in Mali, couched in terms of a campaign by governments against "terrorism", could provoke a jihadist backlash against France and the West, and African allies.


U.S. officials have warned of links between AQIM, Boko Haram in Nigeria and al Shabaab Islamic militants fighting in Somalia.


Al Shabaab, which foiled a French effort at the weekend to rescue a French secret agent it was holding hostage, urged Muslims around the world to rise up against what it called "Christian" attacks against Islam.


"Our brothers in Mali, show patience and tolerance and you will win. War planes never liberate a land," Sheikh Ali Mohamud Rage, al Shabaab's spokesman, said on a rebel-run website.


U.S. officials said Washington was sharing information with French forces in Mali and considering providing logistics, surveillance and airlift capability.


"We have made a commitment that al Qaeda is not going to find any place to hide," U.S. Defense Secretary Leon Panetta told reporters as he began a visit to Europe. Panetta later said the U.S. had no plans to send troops to Mali.


"I don't know what the French endgame is for this. What is their goal? It reminds me of our initial move into Afghanistan," a U.S. military source told Reuters.


"Air strikes are fine. But pretty soon you run out of easy targets. Then what do you do? What do you do when they head up into the mountains?"


(Additional reporting by Elizabeth Pineau and Raissa Kasolowsky in Abu Dhabi; Felix Onuah in Abuja and Tim Cocks in Lagos; Abdi Sheikh in Mogadishu; Michelle Nichols Louis Charbonneau at the United Nations; Richard Valdmanis in Dakar; Joe Bavier in Abidjan; Jan Vermeylen in Brussels; Writing by Pascal Fletcher and David Lewis; editing by Richard Valdmanis and Giles Elgood)



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Apple supplier sees big Q4 boost, likely a good sign for iPhone 5 demand






Shares of Apple (AAPL) have been hit hard over the last few days. Investors continue to worry about the company’s profit margins, demand for its popular line of smartphones and tablets, and its future endeavors. With upcoming competition from Research in Motion (RIMM) and Microsoft (MSFT), and an ongoing battle with Google’s (GOOG) Android operating system, analysts fear that Apple’s mobile dominance may be a thing of the past. While we won’t officially know anything until the company reports its holiday earnings on January 23rd, a small German company has painted a calming picture for Apple shareholders.


[More from BGR: HTC One SV review]






Dialog Semiconductor announced last week that it expects to report a significant increase in sales for its December quarter. The company noted that the increase was due to “a stronger than anticipated end of year, underpinned by a strong late surge in demand for smartphone and tablet products.” Dialog Semiconductor now expects to report revenues of $ 268 million, an increase from between $ 215 million and $ 235 million.


[More from BGR: Extensive BlackBerry Z10 demo video posted by German website [video]]


The important thing to note is that, as of this past fall, Apple is Dialog’s largest customer and accounts for 60% of its total revenue.


Logic dictates that solid demand for Apple’s iPhone and iPad during the holidays helped boost Dialog’s performance. This could also mean that the iPhone-maker will report not only a strong December quarter, but a better-than-expected March quarter as well.


It looks like all this talk about customers losing interest in Apple may indeed be premature.


This article was originally published on BGR.com


Wireless News Headlines – Yahoo! News





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Britney Grabs Coffee Post Split with Jason Trawick















01/14/2013 at 03:50 PM EST



Britney Spears still believes in "love" – at least when it comes to wearing it.

The pop star, 31 – whose failed engagement to Jason Trawick, 41, was announced on Friday – grabbed coffee in L.A. on Monday, sporting a black and white sweatshirt with the four-letter word displayed in large letters across the front.

The former X Factor judge looked casual, wearing shades and her hair in a ponytail.

Once the split was official, a source told PEOPLE, "Britney had a lot of issues with Jason doing his own thing – in business and seeing his friends. In her perfect world he would have been home with her twenty-four/seven, so that was a point of contention; something they were always working on."

But she didn't seem too bent out of shape when she made her outing and grabbed two drinks to go, as she wore a happy grin the whole time.

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Hospitals crack down on workers refusing flu shots


CHICAGO (AP) — Patients can refuse a flu shot. Should doctors and nurses have that right, too? That is the thorny question surfacing as U.S. hospitals increasingly crack down on employees who won't get flu shots, with some workers losing their jobs over their refusal.


"Where does it say that I am no longer a patient if I'm a nurse," wondered Carrie Calhoun, a longtime critical care nurse in suburban Chicago who was fired last month after she refused a flu shot.


Hospitals' get-tougher measures coincide with an earlier-than-usual flu season hitting harder than in recent mild seasons. Flu is widespread in most states, and at least 20 children have died.


Most doctors and nurses do get flu shots. But in the past two months, at least 15 nurses and other hospital staffers in four states have been fired for refusing, and several others have resigned, according to affected workers, hospital authorities and published reports.


In Rhode Island, one of three states with tough penalties behind a mandatory vaccine policy for health care workers, more than 1,000 workers recently signed a petition opposing the policy, according to a labor union that has filed suit to end the regulation.


Why would people whose job is to protect sick patients refuse a flu shot? The reasons vary: allergies to flu vaccine, which are rare; religious objections; and skepticism about whether vaccinating health workers will prevent flu in patients.


Dr. Carolyn Bridges, associate director for adult immunization at the federal Centers for Disease Control and Prevention, says the strongest evidence is from studies in nursing homes, linking flu vaccination among health care workers with fewer patient deaths from all causes.


"We would all like to see stronger data," she said. But other evidence shows flu vaccination "significantly decreases" flu cases, she said. "It should work the same in a health care worker versus somebody out in the community."


Cancer nurse Joyce Gingerich is among the skeptics and says her decision to avoid the shot is mostly "a personal thing." She's among seven employees at IU Health Goshen Hospital in northern Indiana who were recently fired for refusing flu shots. Gingerich said she gets other vaccinations but thinks it should be a choice. She opposes "the injustice of being forced to put something in my body."


Medical ethicist Art Caplan says health care workers' ethical obligation to protect patients trumps their individual rights.


"If you don't want to do it, you shouldn't work in that environment," said Caplan, medical ethics chief at New York University's Langone Medical Center. "Patients should demand that their health care provider gets flu shots — and they should ask them."


For some people, flu causes only mild symptoms. But it can also lead to pneumonia, and there are thousands of hospitalizations and deaths each year. The number of deaths has varied in recent decades from about 3,000 to 49,000.


A survey by CDC researchers found that in 2011, more than 400 U.S. hospitals required flu vaccinations for their employees and 29 hospitals fired unvaccinated employees.


At Calhoun's hospital, Alexian Brothers Medical Center in Elk Grove Village, Ill., unvaccinated workers granted exemptions must wear masks and tell patients, "I'm wearing the mask for your safety," Calhoun says. She says that's discriminatory and may make patients want to avoid "the dirty nurse" with the mask.


The hospital justified its vaccination policy in an email, citing the CDC's warning that this year's flu outbreak was "expected to be among the worst in a decade" and noted that Illinois has already been hit especially hard. The mandatory vaccine policy "is consistent with our health system's mission to provide the safest environment possible."


The government recommends flu shots for nearly everyone, starting at age 6 months. Vaccination rates among the general public are generally lower than among health care workers.


According to the most recent federal data, about 63 percent of U.S. health care workers had flu shots as of November. That's up from previous years, but the government wants 90 percent coverage of health care workers by 2020.


The highest rate, about 88 percent, was among pharmacists, followed by doctors at 84 percent, and nurses, 82 percent. Fewer than half of nursing assistants and aides are vaccinated, Bridges said.


Some hospitals have achieved 90 percent but many fall short. A government health advisory panel has urged those below 90 percent to consider a mandatory program.


Also, the accreditation body over hospitals requires them to offer flu vaccines to workers, and those failing to do that and improve vaccination rates could lose accreditation.


Starting this year, the government's Centers for Medicare & Medicaid Services is requiring hospitals to report employees' flu vaccination rates as a means to boost the rates, the CDC's Bridges said. Eventually the data will be posted on the agency's "Hospital Compare" website.


Several leading doctor groups support mandatory flu shots for workers. And the American Medical Association in November endorsed mandatory shots for those with direct patient contact in nursing homes; elderly patients are particularly vulnerable to flu-related complications. The American Nurses Association supports mandates if they're adopted at the state level and affect all hospitals, but also says exceptions should be allowed for medical or religious reasons.


Mandates for vaccinating health care workers against other diseases, including measles, mumps and hepatitis, are widely accepted. But some workers have less faith that flu shots work — partly because there are several types of flu virus that often differ each season and manufacturers must reformulate vaccines to try and match the circulating strains.


While not 100 percent effective, this year's vaccine is a good match, the CDC's Bridges said.


Several states have laws or regulations requiring flu vaccination for health care workers but only three — Arkansas, Maine and Rhode Island — spell out penalties for those who refuse, according to Alexandra Stewart, a George Washington University expert in immunization policy and co-author of a study appearing this month in the journal Vaccine.


Rhode Island's regulation, enacted in December, may be the toughest and is being challenged in court by a health workers union. The rule allows exemptions for religious or medical reasons, but requires unvaccinated workers in contact with patients to wear face masks during flu season. Employees who refuse the masks can be fined $100 and may face a complaint or reprimand for unprofessional conduct that could result in losing their professional license.


Some Rhode Island hospitals post signs announcing that workers wearing masks have not received flu shots. Opponents say the masks violate their health privacy.


"We really strongly support the goal of increasing vaccination rates among health care workers and among the population as a whole," but it should be voluntary, said SEIU Healthcare Employees Union spokesman Chas Walker.


Supporters of health care worker mandates note that to protect public health, courts have endorsed forced vaccination laws affecting the general population during disease outbreaks, and have upheld vaccination requirements for schoolchildren.


Cases involving flu vaccine mandates for health workers have had less success. A 2009 New York state regulation mandating health care worker vaccinations for swine flu and seasonal flu was challenged in court but was later rescinded because of a vaccine shortage. And labor unions have challenged individual hospital mandates enacted without collective bargaining; an appeals court upheld that argument in 2007 in a widely cited case involving Virginia Mason Hospital in Seattle.


Calhoun, the Illinois nurse, says she is unsure of her options.


"Most of the hospitals in my area are all implementing these policies," she said. "This conflict could end the career I have dedicated myself to."


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Online:


R.I. union lawsuit against mandatory vaccines: http://www.seiu1199ne.org/files/2013/01/FluLawsuitRI.pdf


CDC: http://www.cdc.gov


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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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