A Breakthrough Against Leukemia Using Altered T-Cells

PHILIPSBURG, Pa. — Emma Whitehead has been bounding around the house lately, practicing somersaults and rugby-style tumbles that make her parents wince.

It is hard to believe, but last spring Emma, then 6, was near death from leukemia. She had relapsed twice after chemotherapy, and doctors had run out of options.

Desperate to save her, her parents sought an experimental treatment at the Children’s Hospital of Philadelphia, one that had never before been tried in a child, or in anyone with the type of leukemia Emma had. The experiment, in April, used a disabled form of the virus that causes AIDS to reprogram Emma’s immune system genetically to kill cancer cells.

The treatment very nearly killed her. But she emerged from it cancer-free, and about seven months later is still in complete remission. She is the first child and one of the first humans ever in whom new techniques have achieved a long-sought goal — giving a patient’s own immune system the lasting ability to fight cancer.

Emma had been ill with acute lymphoblastic leukemia since 2010, when she was 5, said her parents, Kari and Tom. She is their only child.

She is among just a dozen patients with advanced leukemia to have received the experimental treatment, which was developed at the University of Pennsylvania. Similar approaches are also being tried at other centers, including the National Cancer Institute and Memorial Sloan-Kettering Cancer Center in New York.

“Our goal is to have a cure, but we can’t say that word,” said Dr. Carl June, who leads the research team at the University of Pennsylvania. He hopes the new treatment will eventually replace bone-marrow transplantation, an even more arduous, risky and expensive procedure that is now the last hope when other treatments fail in leukemia and related diseases.

Three adults with chronic leukemia treated at the University of Pennsylvania have also had complete remissions, with no signs of disease; two of them have been well for more than two years, said Dr. David Porter. Four adults improved but did not have full remissions, and one was treated too recently to evaluate. A child improved and then relapsed. In two adults, the treatment did not work at all. The Pennsylvania researchers were presenting their results on Sunday and Monday in Atlanta at a meeting of the American Society of Hematology.

Despite the mixed results, cancer experts not involved with the research say it has tremendous promise, because even in this early phase of testing it has worked in seemingly hopeless cases. “I think this is a major breakthrough,” said Dr. Ivan Borrello, a cancer expert and associate professor of medicine at the Johns Hopkins University School of Medicine.

Dr. John Wagner, the director of pediatric blood and marrow transplantation at the University of Minnesota, called the Pennsylvania results “phenomenal” and said they were “what we’ve all been working and hoping for but not seeing to this extent.”

A major drug company, Novartis, is betting on the Pennsylvania team and has committed $20 million to building a research center on the university’s campus to bring the treatment to market.

Hervé Hoppenot, the president of Novartis Oncology, called the research “fantastic” and said it had the potential — if the early results held up — to revolutionize the treatment of leukemia and related blood cancers. Researchers say the same approach, reprogramming the patient’s immune system, may also eventually be used against tumors like breast and prostate cancer.

To perform the treatment, doctors remove millions of the patient’s T-cells — a type of white blood cell — and insert new genes that enable the T-cells to kill cancer cells. The technique employs a disabled form of H.I.V. because it is very good at carrying genetic material into T-cells. The new genes program the T-cells to attack B-cells, a normal part of the immune system that turn malignant in leukemia.

The altered T-cells — called chimeric antigen receptor cells — are then dripped back into the patient’s veins, and if all goes well they multiply and start destroying the cancer.

The T-cells home in on a protein called CD-19 that is found on the surface of most B-cells, whether they are healthy or malignant.

A sign that the treatment is working is that the patient becomes terribly ill, with raging fevers and chills — a reaction that oncologists call “shake and bake,” Dr. June said. Its medical name is cytokine-release syndrome, or cytokine storm, referring to the natural chemicals that pour out of cells in the immune system as they are being activated, causing fevers and other symptoms. The storm can also flood the lungs and cause perilous drops in blood pressure — effects that nearly killed Emma.

Steroids sometimes ease the reaction, but they did not help Emma. Her temperature hit 105. She wound up on a ventilator, unconscious and swollen almost beyond recognition, surrounded by friends and family who had come to say goodbye.

But at the 11th hour, a battery of blood tests gave the researchers a clue as to what might help save Emma: her level of one of the cytokines, interleukin-6 or IL-6, had shot up a thousandfold. Doctors had never seen such a spike before and thought it might be what was making her so sick.

Dr. June knew that a drug could lower IL-6 — his daughter takes it for rheumatoid arthritis. It had never been used for a crisis like Emma’s, but there was little to lose. Her oncologist, Dr. Stephan A. Grupp, ordered the drug. The response, he said, was “amazing.”

Within hours, Emma began to stabilize. She woke up a week later, on May 2, the day she turned 7; the intensive-care staff sang “Happy Birthday.”

Since then, the research team has used the same drug, tocilizumab, in several other patients.

In patients with lasting remissions after the treatment, the altered T-cells persist in the bloodstream, though in smaller numbers than when they were fighting the disease. Some patients have had the cells for years.

Dr. Michel Sadelain, who conducts similar studies at the Sloan-Kettering Institute, said: “These T-cells are living drugs. With a pill, you take it, it’s eliminated from your body and you have to take it again.” But T-cells, he said, “could potentially be given only once, maybe only once or twice or three times.”

The Pennsylvania researchers said they were surprised to find any big drug company interested in their work, because a new batch of T-cells must be created for each patient — a far cry from the familiar commercial strategy of developing products like Viagra or cholesterol medicines, in which millions of people take the same drug.

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Fed Likely to Sustain Bond-Buying Program to Stimulate Growth

WASHINGTON — The Federal Reserve is widely expected to announce on Wednesday that it will continue buying Treasury securities to stimulate growth in the new year.

The Fed’s public declaration in September that it would buy bonds until the outlook for the labor market “improved substantially” has cleared away much of the uncertainty and controversy that usually precedes such announcements.

The economic recovery remains lackluster and millions are looking for work. But while some analysts question the central bank’s ability to improve the situation, few doubt that the Fed, under its chairman, Ben S. Bernanke, is determined to keep trying.

Indeed, while Fed officials continue to warn that a failure to avert scheduled tax increases and spending cuts next year would overwhelm their efforts and plunge the economy back into recession, they have also said that even if Congress and the White House negotiate a compromise, the Fed’s efforts would continue.

“I am not prepared to say we are remotely close to substantial improvement on the employment front,” Dennis P. Lockhart, president of the Federal Reserve Bank of Atlanta, said in a recent speech. “I expect that continued aggressive use of balance sheet monetary tools will be appropriate and justified by economic conditions for some time, even if fiscal cliff issues are properly addressed.”

The remarks were particularly significant because Mr. Lockhart is among the moderate members of the Federal Open Market Committee whose support Mr. Bernanke invested months in winning before starting the new policy.

With the direction of policy clearly set, debate has turned to the details. The Fed, whose policy-making committee is meeting on Tuesday and Wednesday, still must determine what to buy and how much to spend, and officials continue to debate the best way to describe when the agency is likely to stop buying.

In making those decisions, the Fed must balance its conviction that buying bonds reduces borrowing costs for businesses and consumers against concerns the purchases might disrupt financial markets or inhibit its control of inflation.

Analysts say the immediate answer is likely to be more of the same. The Fed currently buys $40 billion of mortgage-backed securities and $45 billion of Treasury securities a month. Officials highlighted that $85 billion figure in September, and have indicated since that it remained their rough target.

“It would be odd for them to disappoint the expectations that they have created themselves,” Kris Dawsey of Goldman Sachs wrote in a note to clients predicting that the Fed would maintain both the dollar amount and the division. Other analysts have suggested the Fed might slightly decrease the total amount of purchases, to $80 billion, or increase the share of mortgage securities.

The Fed is unlikely to announce a new timetable this week, analysts said. The committee has said that it does not plan to raise interest rates before the middle of 2015, and that it will stop buying bonds before it starts raising rates.

Many officials on the 12-member committee — perhaps even the majority — would prefer to substitute economic objectives for guidance set by the calendar. The Fed’s ability to reduce borrowing costs derives in part from persuading investors that interest rates will remain low. Telling investors how the economic situation must change in order to warrant a change in policy could be more convincing, and therefore more potent, than simply publishing an estimated endpoint, these officials say.

But an account of the committee’s previous meeting, in late October, showed that officials remained divided about which economic objectives to use.

The most vocal proponent of focusing on economic goals, Charles L. Evans, president of the Federal Reserve Bank of Chicago, said last month that the Fed should declare its intent to keep short-term interest rates near zero until the unemployment rate fell below 6.5 percent, provided that the rate of inflation did not exceed 2.5 percent.

“I believe we have the ability to go even further in reassuring financial markets and the general public that policy will stay appropriately accommodative,” Mr. Evans said in advocating the change during a speech in Toronto.

Other officials have misgivings about placing such emphasis on any single economic indicator, or on the unemployment rate in particular.

The discussions are moving slowly, in part because it is not clear the changes being contemplated would have significant benefits. The targets the Fed is considering closely resemble its own past practice, meaning the new thresholds would tend to reinforce rather than shift expectations.

Lou Crandall, chief economist at the research firm Wrightson ICAP, noted in a recent analysis that the unemployment rate exceeded 7 percent in the mid-1980s and again in the early 1990s, and in both cases the Fed waited until the rate fell well into the 6 percent range before it began to raise interest rates.

The relative complacency of Fed officials also reflects their judgment that the mortgage-bond purchases announced in September are working. Average interest rates on 30-year mortgages are at the lowest levels on record, averaging 3.35 percent in November, according to Freddie Mac’s regular survey.

“This is solid evidence that our policy has been and continues to be effective — though it is certainly not all-powerful in current circumstances,” William C. Dudley, president of the Federal Reserve Bank of New York, said last week.

To continue the companion purchases of Treasury securities, the Fed will need to change its approach. It is now buying long-term securities with proceeds from the sale of short-term securities, but it is running out of inventory to sell.

The most likely alternative is to create money by crediting the accounts of banks that sell bonds to the Fed, the same method now being used to buy mortgage bonds and also to finance earlier rounds of the Fed’s so-called quantitative easing.

The Fed has repeatedly overestimated the health of the economy and the impact of its efforts. This time, officials have promised to maintain their efforts even as the economy shows signs of improvement. But they are once again sounding notes of cautious optimism about the coming year — if Washington does not interfere.

A budget deal reducing deficits in the long term, Mr. Bernanke said in November, “could help make the new year a very good one for the American economy.”

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Changes to Agriculture Highlight Cuba’s Problems

HAVANA — Cuba’s liveliest experiment with capitalism unfolds every night in a dirt lot on the edge of the capital, where Truman-era trucks lugging fresh produce meet up with hundreds of buyers on creaking bicycle carts clutching wads of cash.

“This place, it feeds all of Havana,” said Misael Toledo, 37, who owns three small food stores in the city. “Before, you could only buy or sell in the markets of Fidel.”

The agriculture exchange, which sprang up last year after the Cuban government legalized a broader range of small businesses, is a vivid sign of both how much the country has changed, and of all the political and practical limitations that continue to hold it back.

President Raúl Castro has made agriculture priority No. 1 in his attempt to remake the country. He used his first major presidential address in 2007 to zero in on farming, describing weeds conquering fallow fields and the need to ensure that “anyone who wants can drink a glass of milk.”

No other industry has seen as much liberalization, with a steady rollout of incentives for farmers. And Mr. Castro has been explicit about his reasoning: increasing efficiency and food production to replace imports that cost Cuba hundreds of millions of dollars a year is a matter “of national security.”

Yet at this point, by most measures, the project has failed. Because of waste, poor management, policy constraints, transportation limits, theft and other problems, overall efficiency has dropped: many Cubans are actually seeing less food at private markets. That is the case despite an increase in the number of farmers and production gains for certain items. A recent study from the University of Havana showed that market prices jumped by nearly 20 percent in 2011 alone. And food imports increased to an estimated $1.7 billion last year, up from $1.4 billion in 2006.

“It’s the first instance of Cuba’s leader not being able to get done what he said he would,” said Jorge I. Domínguez, vice provost for international affairs at Harvard, who left Cuba as a boy. “The published statistical results are really very discouraging.”

A major cause: poor transportation, as trucks are in short supply, and the aging ones that exist often break down.

In 2009, hundreds of tons of tomatoes, part of a bumper crop that year, rotted because of a lack of transportation by the government agency charged with bringing food to processing centers.

“It’s worse when it rains,” said Javier González, 27, a farmer in Artemisa Province who described often seeing crops wilt and rot because they were not picked up.

Behind him were the 33 fertile, rent-free acres he had been granted as part of a program Mr. Castro introduced in 2008 to encourage rural residents to work the land. After clearing it himself and planting a variety of crops, Mr. Gonzalez said, he was doing relatively well and earned more last year than his father, who is a doctor, did.

But Cuba’s inefficiencies gnawed at him. Smart, strong, and ambitious, he had expansion plans in mind, even as in his hand he held a wrench. He was repairing a tractor part meant to be grading land. It was broken. Again.

The 1980s Soviet model tractor he bought from another farmer was as about good as it gets in Cuba. The Cuban government maintains a monopoly on selling anything new, and there simply is not enough of anything — fertilizer, or sometimes even machetes — to go around.

Government economists are aware of the problem. “If you give people land and no resources, it doesn’t matter what happens on the land,” said Joaquin Infante of the Havana-based Cuban National Association of Economists.

But Mr. Castro has refused to allow what many farmers and experts see as an obvious solution to the shortages of transportation and equipment: Let people import supplies on their own. “It’s about control,” said Philip Peters, a Cuba analyst with the Lexington Institute, a Virginia-based research group.

Other analysts agree, noting that though the agricultural reforms have gone farther than other changes — like those that allow for self-employment — they remain constrained by politics.

“The government is not ready to let go,” said Ted Henken, a Latin American studies professor at Baruch College. “They are sending the message that they want to let go, or are trying to let go, but what they have is still a mechanism of control.”

For many farmers, that explains why land leases last for 10 years with a chance to renew, not indefinitely or the 99 years offered to foreign developers. It is also why many farmers say they will not build homes on the land they lease, despite a concession this year to allow doing so.

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Marquez knocks out Pacquiao in 6th round

LAS VEGAS (AP) — No need for Juan Manuel Marquez to impress the judges. No need for the referee to count to 10.

Marquez took care of all of his business Saturday night with a thunderous right hand that left Manny Pacquiao face first on the canvas with his remarkable career in question.

Unable to win a decision in their first three fights, Marquez won the old-fashioned way with a huge right hand that put Pacquiao down for the second time in the fight at 2:59 of the sixth round.

Referee Kenny Bayless never bothered to count as Marquez leaped into his handlers' arms in celebration and Pacquiao's wife broke into tears at ringside.

"I threw a perfect punch," Marquez said. "I knew Manny could knock me out at any time."

It was a stunning end to a thrilling fight, the fourth one in the last eight years between the two men. It could also be the end of the Filipino's career, though he said in the ring afterward he would like to fight Marquez for a fifth time.

"If you give us a chance, we'll fight again," Pacquiao said. "I was just starting to feel confident and then I got careless."

Pacquiao had been down in the third round but knocked Marquez down in the fifth and the two were exchanging heavy blows in the sixth round before Marquez threw a right hand that flattened Pacquiao face down on the canvas.

"I thought I was getting him in the last couple of rounds but I got hit by a strong punch," Pacquiao said. "I never expected that punch."

Pacquiao was down for about two minutes before his handlers managed to get him up as Marquez celebrated and the sold-out crowd at the MGM erupted.

After being helped to his corner, Pacquiao sat on a stool, blew his nose and stared vacantly ahead as his handlers cut his gloves off. It was a stunning end to a furious fight, and Pacquiao was later taken to a hospital for precautionary examination.

"We always worked on that punch," Marquez said. "We knew he was going to come out aggressive so we had a fight plan that was more technical. We were able to capitalize on it."

Marquez had vowed to finally beat Pacquiao after losing two close fights and settling for a draw in the first fight. But after Pacquiao knocked him down in the fifth round and was landing big left hands, it looked like it would be Pacquiao's night.

The two came out for the sixth round and the pace was just as relentless. Both were landing big punches and both were brawling when suddenly as the round came to close Marquez shot out a right hand that landed flush to the jaw of Pacquiao, who crumpled to the canvas in a heap.

"I felt he was coming to knock me out the last three rounds and I knew he was going to be wide open," Marquez said.

It was the second loss in a row for Pacquiao, who dropped a decision to Timothy Bradley in June and who had vowed to regain his prominence in the ring.

Pacquiao was aggressive from the opening bell, but paid the price in the third round when he got caught by a Marquez right hand that put him down. Pacquiao got back up and seemingly took control of the fight, dropping Marquez in the fifth round and landing the bigger punches until he was dropped.

"I got hit by a punch I didn't see," Pacquiao said.

Pacquiao, who earned more than $20 million for the fight, was ahead 47-46 on all three scorecards after the fifth round.

There was no title at stake in the 147-pound fight, but that didn't stop 16,348 fans from filling the MGM Grand Arena and roaring in unison from the opening bell as the two fighters went after each other.

Ringside punching stats underscored the ferocity of the bout, showing Pacquiao landing 94 of 256 punches to 52 of 246 for Marquez. But it was the one big right hand from Marquez that counted more than anything, knocking Pacquiao out for the first time in a career that goes back 17 years.

"He was in charge," Pacquiao's trainer, Freddie Roach said. "He just got a little too careless and got hit with a punch he didn't see."

Promoter Bob Arum immediately said he could see a fifth fight between the two boxers, and a dazed Pacquiao seemed to agree.

"Why not?" he said.

Pacquiao weighed the class limit of 147 pounds, but it was Marquez who looked like the stronger fighter entering the ring after having bulked up with the help of a strength conditioner, though he weighed in at 143 pounds. In their earlier fights, Pacquiao had been the bigger puncher, knocking Marquez down a total of four times, but on this night it was Marquez who had the biggest punch.

The stunning knockout was the first real loss by Pacquiao in seven years. He lost a close decision to Bradley in his last fight, but most ringside observers believed he had won it fairly convincingly.

Marquez improved to 55-6-1 with 40 knockouts, while Pacquiao fell to 54-5-2.

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New Taxes to Take Effect to Fund Health Care Law

WASHINGTON — For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.

The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.

Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.

To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly.

The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law.

Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold.

Since the creation of Social Security in the 1930s, payroll taxes have been levied on the wages of each worker as an individual. The new Medicare payroll is different. It will be imposed on the combined earnings of a married couple.

Employers are required to withhold Social Security and Medicare payroll taxes from wages paid to employees. But employers do not necessarily know how much a worker’s spouse earns and may not withhold enough to cover a couple’s Medicare tax liability. Indeed, the new rules say employers may disregard a spouse’s earnings in calculating how much to withhold.

Workers may thus owe more than the amounts withheld by their employers and may have to make up the difference when they file tax returns in April 2014. If they expect to owe additional tax, the government says, they should make estimated tax payments, starting in April 2013, or ask their employers to increase the amount withheld from each paycheck.

In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.” However, the law does not provide for the money to be deposited in a specific trust fund. It is added to the government’s general tax revenues and can be used for education, law enforcement, farm subsidies or other purposes.

Donald B. Marron Jr., the director of the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, said the burden of this tax would be borne by the most affluent taxpayers, with about 85 percent of the revenue coming from 1 percent of taxpayers. By contrast, the biggest potential beneficiaries of the law include people with modest incomes who will receive Medicaid coverage or federal subsidies to buy private insurance.

Wealthy people and their tax advisers are already looking for ways to minimize the impact of the investment tax — for example, by selling stocks and bonds this year to avoid the higher tax rates in 2013.

The new 3.8 percent tax applies to the net investment income of certain high-income taxpayers, those with modified adjusted gross incomes above $200,000 for single taxpayers and $250,000 for couples filing jointly.

David J. Kautter, the director of the Kogod Tax Center at American University, offered this example. In 2013, John earns $160,000, and his wife, Jane, earns $200,000. They have some investments, earn $5,000 in dividends and sell some long-held stock for a gain of $40,000, so their investment income is $45,000. They owe 3.8 percent of that amount, or $1,710, in the new investment tax. And they owe $990 in additional payroll tax.

The new tax on unearned income would come on top of other tax increases that might occur automatically next year if President Obama and Congress cannot reach an agreement in talks on the federal deficit and debt. If Congress does nothing, the tax rate on long-term capital gains, now 15 percent, will rise to 20 percent in January. Dividends will be treated as ordinary income and taxed at a maximum rate of 39.6 percent, up from the current 15 percent rate for most dividends.

Under another provision of the health care law, consumers may find it more difficult to obtain a tax break for medical expenses.

Taxpayers now can take an itemized deduction for unreimbursed medical expenses, to the extent that they exceed 7.5 percent of adjusted gross income. The health care law will increase the threshold for most taxpayers to 10 percent next year. The increase is delayed to 2017 for people 65 and older.

In addition, workers face a new $2,500 limit on the amount they can contribute to flexible spending accounts used to pay medical expenses. Such accounts can benefit workers by allowing them to pay out-of-pocket expenses with pretax money.

Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.

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Changes to Agriculture Highlight Cuba’s Problems

HAVANA — Cuba’s liveliest experiment with capitalism unfolds every night in a dirt lot on the edge of the capital, where Truman-era trucks lugging fresh produce meet up with hundreds of buyers on creaking bicycle carts clutching wads of cash.

“This place, it feeds all of Havana,” said Misael Toledo, 37, who owns three small food stores in the city. “Before, you could only buy or sell in the markets of Fidel.”

The agriculture exchange, which sprang up last year after the Cuban government legalized a broader range of small businesses, is a vivid sign of both how much the country has changed, and of all the political and practical limitations that continue to hold it back.

President Raúl Castro has made agriculture priority No. 1 in his attempt to remake the country. He used his first major presidential address in 2007 to zero in on farming, describing weeds conquering fallow fields and the need to ensure that “anyone who wants can drink a glass of milk.”

No other industry has seen as much liberalization, with a steady rollout of incentives for farmers. And Mr. Castro has been explicit about his reasoning: increasing efficiency and food production to replace imports that cost Cuba hundreds of millions of dollars a year is a matter “of national security.”

Yet at this point, by most measures, the project has failed. Because of waste, poor management, policy constraints, transportation limits, theft and other problems, overall efficiency has dropped: many Cubans are actually seeing less food at private markets. That is the case despite an increase in the number of farmers and production gains for certain items. A recent study from the University of Havana showed that market prices jumped by nearly 20 percent in 2011 alone. And food imports increased to an estimated $1.7 billion last year, up from $1.4 billion in 2006.

“It’s the first instance of Cuba’s leader not being able to get done what he said he would,” said Jorge I. Domínguez, vice provost for international affairs at Harvard, who left Cuba as a boy. “The published statistical results are really very discouraging.”

A major cause: poor transportation, as trucks are in short supply, and the aging ones that exist often break down.

In 2009, hundreds of tons of tomatoes, part of a bumper crop that year, rotted because of a lack of transportation by the government agency charged with bringing food to processing centers.

“It’s worse when it rains,” said Javier González, 27, a farmer in Artemisa Province who described often seeing crops wilt and rot because they were not picked up.

Behind him were the 33 fertile, rent-free acres he had been granted as part of a program Mr. Castro introduced in 2008 to encourage rural residents to work the land. After clearing it himself and planting a variety of crops, Mr. Gonzalez said, he was doing relatively well and earned more last year than his father, who is a doctor, did.

But Cuba’s inefficiencies gnawed at him. Smart, strong, and ambitious, he had expansion plans in mind, even as in his hand he held a wrench. He was repairing a tractor part meant to be grading land. It was broken. Again.

The 1980s Soviet model tractor he bought from another farmer was as about good as it gets in Cuba. The Cuban government maintains a monopoly on selling anything new, and there simply is not enough of anything — fertilizer, or sometimes even machetes — to go around.

Government economists are aware of the problem. “If you give people land and no resources, it doesn’t matter what happens on the land,” said Joaquin Infante of the Havana-based Cuban National Association of Economists.

But Mr. Castro has refused to allow what many farmers and experts see as an obvious solution to the shortages of transportation and equipment: Let people import supplies on their own. “It’s about control,” said Philip Peters, a Cuba analyst with the Lexington Institute, a Virginia-based research group.

Other analysts agree, noting that though the agricultural reforms have gone farther than other changes — like those that allow for self-employment — they remain constrained by politics.

“The government is not ready to let go,” said Ted Henken, a Latin American studies professor at Baruch College. “They are sending the message that they want to let go, or are trying to let go, but what they have is still a mechanism of control.”

For many farmers, that explains why land leases last for 10 years with a chance to renew, not indefinitely or the 99 years offered to foreign developers. It is also why many farmers say they will not build homes on the land they lease, despite a concession this year to allow doing so.

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Karzai Implicates Pakistan in Attack on Afghan Spy Chief

KABUL, Afghanistan — The suicide bomber who tried to assassinate Afghanistan’s powerful new intelligence chief came from Pakistan and the attack was organized with the help of a sophisticated foreign intelligence service, President Hamid Karzai said Saturday.

Mr. Karzai said he would ask for clarification from Pakistan’s president, when the two men meet later this month, on whether Pakistan’s intelligence service was involved in any way. He said he wanted Pakistan’s help in easing ordinary Afghans’ suspicions that Pakistani interests were behind the attack — if not directly organizing it, then at least providing help.

The audacious assassination attempt on Asadullah Khalid, who had been leading the National Directorate of Security since September, has taken out of action an important figure in the war against the insurgency. It took place on Thursday when an unidentified attacker smuggled a bomb into a meeting at a guesthouse in central Kabul with Mr. Khalid.

“We will be seeking a lot of clarifications from Pakistan because we know that this man who came in the name of a guest to meet with Asadullah Khan Khalid came from Pakistan,” Mr. Karzai said at a news conference at the presidential palace here. “We know that for a fact, it is clear.”

The bomb, which Afghan authorities said was concealed around the attacker’s groin, left Mr. Khalid seriously injured.

The Taliban claimed responsibility, but Mr. Karzai said the attack was too sophisticated to be the work of the Taliban alone.

“This is not the work of Taliban,” he said. “This is a very professional and well-engineered attack. Taliban are not able to do this, but there are strong and skilled hands involved in the attack.”

Mr. Khalid, in his ascendancy to the top of the Afghan intelligence service, had emerged as one of the Taliban’s fiercest opponents and was also a strong critic of Pakistan’s influence in the country.

Mr. Karzai provided no evidence linking the attack to Pakistan. The government regularly accuses Pakistan of involvement in attacks, and has done so after assaults on other senior Afghan officials in recent years.

The president drew a distinction between different groups of the Taliban and said some were clearly controlled by the intelligence agencies of neighboring countries, although he said he had no evidence of where. “This is the work of a complicated, sophisticated and professional intelligence agency,” he said.

Mr. Karzai also said the attack was an effort to undermine progress toward meaningful negotiations. “Whenever the peace talks are getting closer to a conclusion or success being achieved in the peace process or hopes being achieved, we face such attacks,” he said.

Many Afghans have raised questions about how an attacker could get so close to such a powerful man regarded as an extremely sophisticated operator.

Mr. Karzai admitted that a security screening had failed, but the government’s statement that the bomb was concealed around the attacker’s groin suggests why it was not detected: an invasive search would have violated Afghanistan’s traditional mores.

Mr. Karzai said Mr. Khalid himself had prevented a more thorough search out of respect for his guest and Afghan tradition.

Mr. Karzai also said Mr. Khalid had told him the evening before the attack about the planned meeting. There was no information about who the attacker was, but Mr. Khalid told him that he hoped the meeting would advance the country’s peace and security, the president said.

Mr. Karzai visited Mr. Khalid on Thursday at a hospital in Kabul before he was taken to better medical facilities at Bagram Air Base, one of the largest coalition bases in Afghanistan.

According to Western officials, Mr. Khalid has serious abdominal injuries and will need multiple operations. Mr. Karzai on Saturday offered few details of the injuries, but said that Mr. Khalid was improving and was now fully conscious and able to speak, and move his hands.

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Zynga seeks real-money gambling license in Nevada

SAN FRANCISCO (Reuters) – Social games maker Zynga Inc said on Wednesday it filed a preliminary application to run real-money gambling games in Nevada, a significant step in cracking a complex but potentially massive new market that could resuscitate its faltering business.

The Nevada Gaming Control Board will now examine whether Zynga is fit to hold a gaming license that would allow gamblers in the state to bet real money on the San Francisco-based company’s popular games like Zynga Poker, which currently involve only virtual chips with no monetary value.

Zynga is hoping that a lucrative real-money market could make up for a steep slide in revenue from its games like “FarmVille” and other fading titles that still generate the bulk of its sales.

“We anticipate that the process will take approximately 12 to 18 months to complete,” Zynga Chief Revenue Officer Barry Cottle said in a statement. “As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market.”

Zynga, along with many major gaming industry players, is hoping that a tide of proposed legislation to regulate gaming could sweep through states across the U.S. and open a massive new online market.

Nevada, Delaware and New Jersey are among the states that have moved or are moving toward interactive gaming after the U.S. Justice Department last year declared that only online betting on sporting contests was unlawful, presenting the opportunity for states to legalize some forms of online gambling, from lotteries to poker.

Although widespread legalization of online gaming in the United States appears years away at the minimum, obtaining a license in Nevada would be a meaningful foot in the door for Zynga’s nationwide aspirations.

Zynga has told investors in recent quarters that a concerted move into real-money gaming could represent a hefty – and badly needed – source of new revenue for the company, which has seen revenues sag and its stock plummet by more than three-quarters in the past year as gamers abandoned titles like “CityVille.”

In October, the company slashed its 2012 full-year earnings outlook for the second time and laid off employees to trim costs, while CEO Mark Pincus implored investors to give him time to turn around the company by pursuing initiatives like real-money gaming.

That month, Zynga struck a deal with bwin.party, a Gibraltar-based gaming company, to provide real money casino games like poker and slots in the United Kingdom beginning in the first half of 2013.

(Reporting By Gerry Shih; Editing by Chris Gallagher)

Gaming News Headlines – Yahoo! News

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Te'o and Manziel hit Manhattan with Heisman hopes

NEW YORK (AP) — Notre Dame linebacker Manti Te'o was looking forward to a break after a five-city-in-five-days tour, during which he has become the most decorated player in college football.

"I'm just trying to get a workout in and get some sleep," he said Friday about his plans for the night.

Texas A&M quarterback Johnny Manziel seemed to have more energy when he arrived at a midtown Manhattan hotel with his fellow Heisman Trophy finalist. In fairness, Johnny Football's week hasn't been nearly as hectic, though this trip to New York city is different from the first time he visited with his family when he was young.

"It's just taking it up a whole 'nother level, but happy to be here," he said.

Manziel and Te'o spent about 30 minutes getting grilled by dozens of reporters in a cramped conference room, posed for some pictures with the big bronze statue that they are hoping to win and were quickly whisked away for more interviews and photo opportunities.

Manziel, Te'o or Collin Klein, the other finalists who couldn't make it to town Friday, each has a chance to be a Heisman first Saturday night.

Manziel is trying to be the first freshman to win the award. Te'o would be the first winner to play only defense. Klein would be Kansas State's first Heisman winner.

Manziel and Te'o were on the same flight from Orlando, Fla., where several college football awards were handed out last night. The 6-foot-1, 200-pound quarterback was just happy the 255-pound linebacker didn't try to record another sack when they met.

"He's a big guy," Manziel said, flashing a big smile from under his white Texas A&M baseball cap. "I thought he might stuff me in locker and beat me up a little bit."

The two hadn't had much time for sightseeing yet, but they did walk around Times Square some, saying hello to a few fans. They probably weren't too difficult to spot in their team issued warm-up gear.

"We've just been talking about goofy stuff. Playing video games. Playing Galaga. Just some things from back in the day. Messing around with each other," Manziel said. "Kind of seeing who is going to take more pictures. He's definitely taking that award right now."

Te'o is already going to need a huge trophy case to house his haul from this week. He has won six major awards, including the Maxwell as national player of the year. He'll try to become Notre Dame's eighth Heisman winner and first since Tim Brown in 1987.

"I can only imagine how I would feel if I win the Heisman," he said.

Charles Woodson of Michigan in 1997 is the closest thing to a true defensive player winning the Heisman. Woodson was a dominant cornerback, but he also returned punts and played a little receiver. That helped burnish his Heisman credentials.

Te'o is all linebacker. He leads the top-ranked Fighting Irish with 103 tackles and seven interceptions.

Klein was the front-runner for the Heisman for a good chunk of the season, but he played his worst game late in the season — in a loss at Baylor — and the momentum Manziel gained by leading Texas A&M to victory at Alabama has been tough to stop.

Manziel's numbers are hard to deny. He set a Southeastern Conference record with 4,600 total yards, throwing for more than 3,000 and rushing for more than 1,000.

Klein, by comparison, averages about 100 fewer total yards per game (383-281) than Manziel.

A freshman has never won the Heisman. Oklahoma running back Adrian Peterson came closest in 2004, finishing second by Southern California's Matt Leinart.

Manziel is a redshirt freshman, meaning he attended Texas A&M and practiced with the team but did not play last year. Still, he'd be the most inexperienced college player to win the sport's most prestigious award.

"It's surreal for me to sit here and think about that this early in my career," he said. "With what me and my teammates have gone through, with how they've played and how they've helped me to get to this point, it's just a testament to how good they are and how good they've been this year.

"Without them I wouldn't be here and that's the real story to all this."

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Vols hire Cincinnati's Jones as new football coach

KNOXVILLE, Tenn. (AP) — Butch Jones wasn't Tennessee's first choice as its next football coach. The Volunteers believe the former Cincinnati coach will prove he's the right choice.

Tennessee announced Friday morning that Jones had agreed to become its fourth coach in six seasons, ending a tumultuous couple of days for both parties. Tennessee has scheduled a Friday afternoon news conference to announce the hiring, which was first reported by VolQuest.com.

"It is truly an honor and a privilege to be a part of the Vol Nation!" Jones, 44, tweeted Friday morning.

Jones has a 50-27 record in six seasons as a head coach. He went 27-13 in three seasons at Central Michigan and was 23-14 at Cincinnati the last three years. He now faces the task of rebuilding a former Southeastern Conference power that has posted three consecutive losing seasons.

Tennessee went after at least two other candidates before hiring Jones.

During the 19-day search to replace Derek Dooley, who was fired Nov. 18 after going 15-21 in his three-year tenure, the Volunteers contacted ESPN analyst and former Super Bowl-winning coach Jon Gruden, who indicated he wasn't interested. The Vols then pursued Charlie Strong, who said Thursday he had turned down their offer and would stay at Louisville.

Jones, meanwhile, was apparently waiting for a job like Tennessee.

On the same day Strong made his announcement, Jones rejected an offer to take over Colorado's program. He also had been linked to the Purdue coaching job before withdrawing his name from consideration.

Jones' hiring means each of the four Southeastern Conference teams that fired coaches this year have filled their vacancies.

Kentucky hired Florida State defensive coordinator Mark Stoops last week to replace Joker Phillips. Arkansas hired Bret Bielema away from Wisconsin on Tuesday to take over for John L. Smith. Auburn selected Arkansas State's Gus Malzahn on Tuesday as the replacement for Gene Chizik.

Jones becomes Tennessee's fourth coach in a six-season stretch, not including offensive coordinator Jim Chaney's stint as interim head coach in the 2012 season finale after Dooley's dismissal. Phillip Fulmer was fired in 2008 after posting a 152-52 record. Lane Kiffin coached Tennessee in 2009 before leaving for Southern California. Dooley lasted three years.

After winning at least eight games for 16 consecutive seasons from 1989-2004 and posting double-digit wins in nine of those years, Tennessee hasn't earned more than seven victories in any of its last five seasons. The Vols went 5-7 this fall for their fifth losing season over the last eight years. This also marks the first time since 1909-11 that Tennessee has finished below .500 three years in a row.

Tennessee athletic director Dave Hart said at the start of the search that head coaching experience was "critically important" and that he wanted a coach who "knows the difficulty of climbing the ladder in the SEC." Jones lacks SEC experience, but he has a career winning percentage of .649. Jones' teams have earned at least a share of a conference title in four of his six seasons as a head coach.

After replacing Notre Dame coach Brian Kelly at Central Michigan and then again at Cincinnati, Jones maintained the momentum his predecessor had established at each school.

In Jones' three-year stint at Central Michigan, the Chippewas won two Mid-American Conference championships and posted a combined league record of 22-3. Jones went 4-8 in his first year at Cincinnati, but the Bearcats are 19-6 since and have tied for first place in the Big East each of the last two seasons. Cincinnati's 2011 season included a 45-23 loss at Tennessee.

Jones signed a contract extension after the 2011 season that includes a $1.4 million buyout if he left before Jan. 1. Cincinnati has named defensive line coach Steve Stripling its interim head coach for the Dec. 27 Belk Bowl against Duke in Charlotte, N.C., while it begins searching for Jones' permanent successor.

"There is no timetable to make the hire," Cincinnati athletic director Whit Babcock said Friday. "Making the right hire is better than the quickest hire, but admittedly sooner is better if possible."

Jones' background as an assistant is entirely on offense, but one of his biggest challenges at Tennessee initially will be strengthening a defense that allowed the most points (35.7) and yards (471.4) per game of any SEC team this season. The Vols hadn't allowed that high a scoring average since 1893, when they gave up 42.7 points per game while playing a six-game schedule. They hadn't yielded that many yards per game since at least 1950, the earliest year Tennessee's sports information department has that statistic on file.

The makeup of Jones' first offense at Tennessee also remains uncertain, at least for now.

Starting quarterback Tyler Bray and star wide receivers Cordarrelle Patterson and Justin Hunter all are projected as first- or second-round draft picks if they choose to turn pro rather than returning to school for their senior seasons. Bray threw for 3,612 yards and 34 touchdowns this year to rank second on Tennessee's single-season list in both categories, behind Peyton Manning's 3,819 yards and 36 touchdown passes in 1997. Hunter caught 73 passes for 1,083 yards and nine touchdowns. Patterson gained a school-record 1,858 all-purpose yards.

Junior offensive tackle Ja'Wuan James also has been mentioned as a possible draft candidate.

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AP Sports Writers Joe Kay in Cincinnati, Larry Lage in Ann Arbor, Mich., and Teresa Walker in Nashville, Tenn., contributed to this report.

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