Amazon drone arguments don't fly

Tensions between Amazon and the Federal Aviation Administration have been brewing for months, so it should come as no surprise that the agency drafted regulations that shoot down the e-commerce giant's drone delivery ambitions.

Why, after all, would the FAA inflict upon itself the masochism of unmanned aircraft hurtling through the sky with gadgets and groceries? The agency seems to have its hands full with helicopters and planes.

And therein lies the abject failure of Amazon to publicly make the case for its proposed Prime Air delivery service, which aims to get packages to customers in 30 minutes or less using small aerial vehicles.

"We believe customers will love it," wrote Paul Misener, Amazon's vice president of global public policy, to the FAA in December, without much in the way of hard data to support his sweeping claims.

Random assertions like those seem to be the basis of Amazon's argument, and the FAA just isn't buying it.

"What data or analysis supports Amazon's position that aerial delivery is in the interest of the American public?" asked the FAA in a rather testy letter to Amazon on Oct. 30. "Examples of benefit to the public may include reductions in injuries or fatalities related to current hand delivery practices."

In other words: what's in it for us?

Amazon's failure to provide much of an argument beyond that it really, really wants to have drones is almost certainly to blame for the FAA's stifling proposal that would mandate drones remain within eyesight of the operator at all times and stay only 500 feet above ground level. Both rules pretty much defeat the purpose of Prime Air.

That said, the FAA isn't so obtuse as to scare off what could potentially be a huge innovation industry in the United States. The agency specifically stated that it is open to public comment on the proposed line-of-sight restriction. Once the proposed rules are published online, the public has 60 days to comment.

Misener has rightly argued that it's in the best interests of the nation for Amazon to keep its drone research and development here in the U.S.

But Amazon needs to get a grip: it's not like these drones are going to be defusing bombs or transporting life-saving medicine.

Until that's the case, Amazon is going to have to make a better argument.

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Critics glad Partners abandons S. Shore hospital buy

Partners HealthCare System's decision to abandon a controversial plan to acquire South Shore Hospital is a victory for the state's efforts to help rein in rising health care costs, according to critics of the proposed purchase.

"It will help moderate costs, and South Shore (Hospital) is a very good system independent of Partners," said Stuart Altman, chairman of the Massachusetts Health Policy Commission, established in 2012 under the state's health care cost-containment law. "In the case of Partners, the problem was they were using their higher reimbursement amounts to generate higher costs."

Partners dropped its bid in the wake of a Suffolk Superior Court judge's rejection last month of an antitrust settlement negotiated by former state Attorney General Martha Coakley that would have paved the way for it to acquire South Shore Hospital and Hallmark Health System's Lawrence Memorial and Melrose-Wakefield hospitals. Attorney General Maura Healey threatened to file an antitrust lawsuit to block any future merger.

"We have listened and heard the public concerns and ... we have decided that the best approach is not to proceed with our plan," outgoing Partners CEO Gary Gottlieb said in a letter to employees yesterday.

That decision is the "right choice for Partners and the commonwealth," Healey said in a statement.

Meanwhile, Gottlieb said Partners and Hallmark agreed "to take a pause as we reflect on next steps."

Healey said in a court filing that she will continue to evaluate that proposal if and when the companies proceed.

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Cinemark quarterly earnings beat expectations on stronger concessions sales

Fewer people went to the movies during the last three months of 2014, but Cinemark's fourth quarter earnings still managed to beat Wall Street's expectations.

The country's third biggest theater chain's revenue rose 1.2% to $659.9 million, while earnings per share climbed to 41 cents from 13 cents in the year-ago period. Net income hit $47.3 million, a huge increase from the $15.6 million Cinemark reported last year at this time. However, that discrepancy has to do with an after-tax loss relating to the company's 2013 sale of its Mexican subsidiaries to Grupo Cinemex.

Analysts had expected the Plano, Texas-based company to show revenue of $647.3 million and earnings per share of 33 cents.

Credit higher concessions revenue for helping the exhibitor soldier on despite a box office downturn. Food and beverage sales hit $214.8 million, up 6.4% from $201.8 million in the year-ago period, while concession revenues per patron increased 4.6% to $3.20. At the same time, admissions revenue fell 1.9% to $404.7 million in the fourth quarter.

A day before earnings were announced, Cinemark declared a dividend of 25 cents per share, which prompted shares to rise.

Quarterly box office across the industry fell 2.8% in the last three months of 2014, as films such as "Interstellar" and "The Hobbit: The Battle of the Five Armies" failed to match the response to the previous year's parade of hits such as "Frozen" and the second "Hunger Games" film. Ticket sales throughout the year were down more than 5%, although exhibitors are optimistic that 2015 will offer a stronger crop of box office heavyweights, such as sequels to "Star Wars" and "The Avengers."

Shares of Cinemark closed Tuesday up 0.15% at $39.08.

© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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Marty Walsh wants 1,000 new mentors for school kids

Mayor Martin J. Walsh put out a call yesterday looking for 1,000 adults — from business executives to scientists to City Hall employees — to step up and volunteer as mentors to help guide Boston school kids.

"There is nothing better than helping somebody shape the future of their life by being a positive role model, a positive influence in their life so they can reach their dreams," Walsh said of his new initiative, the Mayor's Mentoring Movement.

Felix G. Arroyo, Walsh's chief of health and human services, said the administration, "in an attempt to put our money where our mouth is," is looking to recruit 10 percent of the volunteers from the city's own workforce.

"When you ask successful adults, and particularly so for men of color and women, when you ask them did you have a mentor in your life, those who were self defined as successful in their career choice to a T they all say 'Yes,'" Arroyo said.

The city is teaming up with Boston-based Mass Mentoring, a nonprofit that serves as a clearinghouse referring adult volunteers to agencies such as Catholic Charities, Big Brother, Big Sister and Hyde Square Task Force, that then match mentors with kids.

Marty Martinez, head of the organization, said there is a waiting list with as many as 3,000 youths on it looking for mentors.

Bob Gallery, Massachusetts president of Bank of America, whose employees donated 200,000 hours mentoring children last year, said corporations play a critical role in supporting such programs.

"As we all know, there is a strong correlation between what a young person achieves later in life ... and if they had a mentor earlier in their life. It helps ensure their future success," he said, adding that mentors help teach kids both "soft and hard skills."

To learn more about the Mayor's Mentoring Movement, visit: bostonmentors.org.

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Orphan drugs for rare diseases soar

Treatments for rare diseases — key to the success of several Bay State companies — surged nationally last year, a trend that experts say will likely only continue.

Seventeen of the 41 novel new drugs the Food and Drug Administration approved in 2014 treat rare or "orphan" diseases that affect 200,000 or fewer Americans, offering new hope to patients who previously had few or no drugs available to treat their conditions.

"This really is a time of great interest in orphan drugs," said Mary Dunkle, vice president for educational initiatives at the National Organization for Rare Disorders. "There were a few companies who took a risk early on and made this a successful business model."

An orphan drug designation by the FDA means its developer qualifies for tax benefits and seven years of exclusivity, compared to five years for other drugs.

"Companies are understanding the great value of pushing into new areas where there has not yet been an attempt to develop a drug," said Irving Adler, a spokesman for Alexion Pharmaceuticals, a Connecticut-based firm with operations in Cambridge.

Alexion has one approved orphan drug Soliris, which treats two rare, life-threatening diseases.

Other local companies that have developed orphan drugs include Burlington-based Dyax Corp. and Cambridge-based Genzyme.

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Greece hopes lift global stock markets ahead of Fed minutes

LONDON — Confirmation that Greece will seek an extension of its loan agreement with its euro partners helped shore up stock markets across Europe on Wednesday. Later, traders will also comb through the minutes of the last Federal Reserve policy meeting to get a steer on when the central bank might start raising interest rates.

KEEPING SCORE: Across Europe, markets were trading higher after the Greek government indicated it would present its creditors with an official proposal aimed to save bailout talks from collapse. The main stock market in Athens was up 1.9 percent, while Germany's DAX rose 0.4 percent to 10,942. The CAC-40 in France was 0.7 percent higher at 4,791 but the FTSE 100 index of leading British shares fell 0.1 percent to 6,893 as it struggled to sustain a rare foray through the 6,900 level. Wall Street was poised for a flat opening with both Dow futures and the broader S&P 500 futures unchanged.

ATHENS IN FOCUS: The main focus in markets was Athens, where the government is set to ask its European creditors to extend a 240 billion-euro international loan agreement — but apparently without the austerity strings attached. Greece's bailout program expires after Feb. 28 and there are worries that a failure to extend it may force the country out of the euro, which could be potentially damaging to the global economy. Though Athens' new proposal, which is expected Thursday, isn't exactly what the eurozone has been asking for, as it won't be accompanied by an acceptance of austerity conditions, investors appear hopeful that it represents some sort of compromise that could eventually lead to a resolution.

ANALYST TAKE: "At the moment the markets are very much operating on fumes, as any potential loan request would still be a long way from providing an actual resolution," said Connor Campbell, a financial trader at Spreadex. Campbell cautioned that German Finance Minister Wolfgang Schaeuble is "unlikely to accept this watered-down" proposal.

FED MINUTES LOOMING: Later Wednesday, the Federal Reserve's minutes from its January policy meeting are due. Investors will want to see if the current view in markets that interest rates will start rising in mid-summer still holds, given falling inflation rates and the rise in the dollar's value. The U.S. currency's strength can weigh on growth by making exports less competitive and weighing on inflation by making imports less expensive. In the run-up to the meeting, the dollar was solid, with the euro 0.3 percent lower at $1.1374.

THE KEY QUESTION: "Is there a concern that the deflationary wave sweeping across the globe could start to cause the Fed to miss its inflation target and delay the expected rate hike which most think is coming this summer?" asked Michael Hewson, chief market analyst at CMC Markets.

ASIA'S DAY: Japan's benchmark Nikkei 225 index rose 1.2 percent to close at 18,199.17, the highest level in seven and a half years, even though the Bank of Japan did not announce any further action to stimulate the economy following its policy meeting that ended Wednesday. Hong Kong's Hang Seng edged up 0.2 percent to close at midday at 24,832.08 and Australia's S&P/ASX 200 gained 1 percent to 5,915.70. Markets in mainland China are shut for the Lunar New Year holiday and exchanges in South Korea, Taiwan and Vietnam were also closed. Hong Kong, Malaysia and Singapore were only open for morning trading, before closing Thursday and Friday.

ENERGY: Oil prices remained volatile with the recent strength seemingly running out of steam. Benchmark U.S. crude, which had been on the rise last week, was down a dollar at $52.50 a barrel. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.30 to $61.23 a barrel.

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Boston researchers help 
ID key in cancer DNA

Local scientists have unlocked new information about cancer cells that could give late-stage patients hope for better, targeted treatment options down the road, according to a study published today.

"If you're dealing with a tumor, and you're running out of time, you'd better know the best therapy to use to treat it," said Shamil Sunyaev, genetic researcher at Brigham and Women's Hospital and one of the lead authors of the paper, published today in Nature.

"Now we have a glimpse into how and where the mutations happen, and this knowledge has potential to help treat it in the future."

The study found that analyzing a cancer cell's DNA can determine with surprising accuracy where in a patient's body the disease originated. That can help treat those who are diagnosed when the cancer has already spread.

"Every cell in our body has the same DNA, but a cell in the eye is very different from a cell in the foot," Sunyaev said. "That information allows you to go back and see where the cancer originated from."

The researchers — made up of a team from the Broad Institute of MIT and Harvard, and the University of Washington — found that cancer mutation is 
strongly linked with the way the DNA is packaged in each cell, according 
to another lead author, 
Dr. John Stamatoyanno-poulos, associate professor of genome sciences 
and medicine at the University of Washington.

"This is a new biological window on early events in cancer," he said. "It is possible sometimes to put patients with metastatic cancer into remission for some time and prolong life expectancy. You want to treat the patients — the problem is, cancer treatments are different depending on the kind."

The site of origin can be determined with a 90 percent accuracy, Stamatoyannopoulos said. He said he believes getting the cancer cells sequenced will 
become routine in determining treatment options.

He said the research, funded by the National Institutes of Health Common Fund, also could lead to specialized treatments.

"It can help gain insight into different cells that give rise to the same cancers," Stamatoyannopoulos said. "Different kinds of cells 
require different treatments."

The source of the disease in anywhere from 2 to 5 percent of cancer patients cannot be determined.

The late Mayor Thomas M. Menino was diagnosed shortly before he died last year with an advanced cancer of unknown origin.

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US wholesale prices drop 0.8 percent in January

WASHINGTON — U.S. wholesale prices fell by a record amount in January, led by the biggest drop in gasoline prices in six years.

The Labor Department said Wednesday that its producer price index declined 0.8 percent last month, the biggest drop in a data series that goes back to November 2009 when the government changed the calculation methods for its wholesale price index.

Wholesale prices fell a revised 0.2 percent in December and were also down 0.2 percent in November. The string of declines reflects tumbling energy costs. For January, gas prices plunged 24 percent, the biggest drop since a 25.5 percent fall in December 2008.

The 0.8 percent drop in overall wholesale prices was bigger than the 0.5 percent decline that many economists had been expecting. Much of the decrease reflected a record drop in energy costs. However, food costs also showed a sizable drop.

Economists said they expected further declines in prices in coming months as falling energy prices work through the economy.

"Inflation pressures remain muted," said Jennifer Lee, senior economist at BMO Capital Markets.

Excluding volatile food and energy costs, wholesale prices edged down 0.1 percent in January after a 0.3 percent rise for core prices in December.

Over the past 12 months, the government's producer price index, which measures inflation before it reaches the consumer, was unchanged while core wholesale prices are up 1.6 percent.

For all of 2014, wholesale prices rose a moderate 1.1 percent, slightly below the 1.2 percent increase seen in 2013.

Overall energy costs fell a record 10.3 percent in January with all types of energy products showing big declines.

Gas prices in January dropped as low as $2.03, according to the nationwide average surveyed by AAA. Prices have risen a bit since then and now are averaging $2.24 a gallon nationwide, still about $1.10 below where they were a year ago.

Food costs fell 1.1 percent in January, the biggest one-month decline since April 2013, with the price of eggs, pork and dairy products all falling.

Various inflation measures show prices rising below the 2 percent target set by the Federal Reserve. That has given the central bank the leeway to keep a key interest rate at a record low near zero for the past six years in an effort to boost economic growth and lower employment.

The Fed in January repeated the view that it could be "patient" in deciding when to raise interest rates, reinforcing the view that the Fed's first rate hike is not likely to occur before June. And in fact, some economists have pushed that target back to September or even later, reflecting the big drop in energy prices and a rising value for the U.S. dollar, which lowers inflation by making imported goods cheaper for American consumers.

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Tom Colicchio joins MSNBC as food correspondent

"Top Chef" judge Tom Colicchio has joined MSNBC in the role of food correspondent, a sign of his growing celebrity and the public's insatiable appetite for culinary-oriented programming.

Colicchio will be featured in segments to run on various MSNBC shows, and he will host his own weekly series, "Stirring the Pot," for MSNBC's digital incubator, Shift.

Colicchio has been a semi-regular guest on various MSNBC shows over the years as he is already in the member of the NBCUniversal family through his long association with Bravo's "Top Chef" and as host of the new series "Best New Restaurant."

Colicchio said he will put an emphasis on political and social issues that involve food and agricultural concerns in his MSNBC reporting. In addition to his work on Bravo series, Colicchio was exec producer and a featured personality in Participant Media's 2012 documentary, "A Place at the Table," about hunger issues in the U.S.

The hiring of Colicchio also comes as MSNBC is grappling with a ratings downturn. MSNBC said his appointment was a sign of a "larger strategy to cover a broader set of stories that move and inspire Americans through its progressive lens."

MSNBC aims to showcase Colicchio across the channel, with regular reports featured on "Morning Joe" and "The Rachel Maddow Show," among other programs. There are also plans for a segment dubbed "Everyone Eats" featuring interviews with celebs, politicians, athletes and other notables. Colicchio's new job will also have him traveling for field reporting with other MSNBC personalities.

"There are few voices - if any - that are as passionate as Tom Colicchio is when talking about the food we eat and how it impacts our families and communities. I've long been a fan of his work and am thrilled that Tom's fresh perspective will be integrated across all our platforms, from TV to Shift to social media," said MSNBC president Phil Griffin.

Colicchio is known for his blunt approach to guiding and judging the contestants on "Top Chef," the cooking competition series that is a cornerstone of Bravo's lineup. As a chef, he made his name with the success of his Craft franchise of eateries, which include outposts in New York, Los Angeles and Las Vegas. He also runs the Colicchio and Sons restaurant in New York and Heritage Steak in Las Vegas, as well as the sandwich shop chain 'wichcraft, which has 14 locations around the country.

Colicchio has been head judge on "Top Chef" since its inception in 2006.

"As a chef, a father, and an advocate for sane food policy, I'm looking forward to bringing stories to MSNBC that highlight how critical food is to the workings of a functional, humane society," said Colicchio. "In today's world it is impossible to separate our food culture from the politics and policies that shape our choices as consumers and taxpayers, whether we're aware of them or not. The one thing we all have in common is that everyone eats, and I'm excited to partner with MSNBC on a show that fosters healthy dialogue and speaks to this basic common truth."

© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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Stocks slip lower ahead of Fed minutes; energy stocks drop

NEW YORK — The U.S. stock market on Wednesday pulled back from record levels. Declines were led by energy stocks in the afternoon, as the price of oil fell on speculation that a recent rally in the crude was excessive.

Later, traders will also comb through the minutes of the last Federal Reserve policy meeting for an indication of when the central bank might start raising interest rates.

KEEPING SCORE: The Standard & Poor's 500 index fell three points, or 0.2 percent, to 2,096 as of 11:33 a.m. Eastern time. The index closed at an all-time high of 2,100 on Tuesday.

The Dow Jones industrial average dropped 26 points, or 0.2 percent, to 18,019. The Nasdaq composite was little changed at 4,899.

FED MINUTES LOOMING: Yhe Federal Reserve will release minutes from its January policy meeting at 2 p.m. Eastern. Investors want to see if policy makers are close to raising interest rates. Currently, investors are expecting the Fed to raise rates between June and September. That would be the first increase since 2006.

ENERGY: Oil prices remained volatile with the recent rally appearing to flag. Benchmark U.S. crude, which had been on the rise last week, was down $1.19 at $52.34 a barrel Wednesday. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.32 to $61.20 a barrel.

THE QUOTE: The S&P 500 has rebounded from a weak start to the year, climbing back to an all-time high in February, as a rebound in oil has boosted energy stocks. Encouraging reports on hiring have also encouraged investors. The gains have come, even as a strengthening dollar has curbed overseas earnings for companies in the index.

"Investors are starting to look beyond oil and the currency strength and they are looking at the underlying economy as a positive," said Sean Lynch, co-head of global equity strategy with Wells Fargo Investment Institute.

OVERALL PICTURE: Almost 80 percent of the companies in the S&P 500 index have now reported their results for the fourth quarter, and earnings are forecast to climb by 7.6 percent for the period, according to S&P Capital IQ. That compares with growth of 9.2 percent in the third quarter and a rate of 4.9 percent in the same period a year earlier.

EARNINGS WATCH: Shares of Fossil Group plunged as the company's fourth-quarter results and outlook disappointed investors. The company's stock dropped $17.34, or 17.5 percent, to $81.88.

GREECE: The Greek government is set to ask its European creditors to extend a 240 billion-euro international loan agreement — but without the deep spending cuts and income reductions of the country's austerity program. Greece's bailout program expires after Feb. 28 and there are worries that a failure to extend it may force the country out of the euro, which could be potentially damaging to the global economy. Investors are optimistic that Greece will eventually reach a compromise with its creditors.

EUROPE'S DAY: The main stock market in Athens was up 1.1 percent, while Germany's DAX rose 0.5 percent. The CAC-40 in France was 0.9 percent higher but the FTSE 100 index of leading British shares fell 0.2 percent.

BONDS AND CURRENCIES: In government bond trading, prices rose. The yield on the 10-year Treasury note fell to 2.12 percent from 2.14 percent late Tuesday.

The dollar gained against the euro, pushing the currency down to 1.1372

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