Israel moves on reservists after rockets target cities

GAZA/JERUSALEM (Reuters) – Israeli ministers were on Friday asked to endorse the call-up of up to 75,000 reservists after Palestinian militants nearly hit Jerusalem with a rocket for the first time in decades and fired at Tel Aviv for a second day.

The rocket attacks were a challenge to Israel‘s Gaza offensive and came just hours after Egypt‘s prime minister, denouncing what he described as Israeli aggression, visited the enclave and said Cairo was prepared to mediate.

Israel’s armed forces announced that a highway leading to the Gaza Strip and two roads bordering the enclave would be off-limits to civilian traffic until further notice.

Tanks and self-propelled guns were seen near the border area on Friday, and the military said it had already called 16,000 reservists to active duty.

Prime Minister Benjamin Netanyahu convened senior cabinet ministers in Tel Aviv after the rockets struck to decide on widening the Gaza campaign.

Political sources said ministers were asked to approve the mobilization of up to 75,000 reservists, in what could be preparation for a possible ground operation.

No decision was immediately announced and some commentators speculated in the Israeli media the move could be psychological warfare against Gaza’s Hamas rulers. A quota of 30,000 reservists had been set earlier.

Israel began bombing Gaza on Wednesday with an attack that killed the Hamas military chief. It says its campaign is in response to Hamas missiles fired on its territory. Hamas stepped up rocket attacks in response.

Israeli police said a rocket fired from Gaza landed in the Jerusalem area, outside the city, on Friday.

It was the first Palestinian rocket since 1970 to reach the vicinity of the holy city, which Israel claims as its capital, and was likely to spur an escalation in its three-day old air war against militants in Gaza.

Rockets nearly hit Tel Aviv on Thursday for the first time since Saddam Hussein’s Iraq fired them during the 1991 Gulf War. An air raid siren rang out on Friday when the commercial centre was targeted again. Motorists crouched next to cars, many with their hands protecting their heads, while pedestrians scurried for cover in building stairwells.

The Jerusalem and Tel Aviv strikes have so far caused no casualties or damage, but could be political poison for Netanyahu, a conservative favored to win re-election in January on the strength of his ability to guarantee security.

“The Israel Defence Forces will continue to hit Hamas hard and are prepared to broaden the action inside Gaza,” Netanyahu said before the rocket attacks on the two cities.

Asked about Israel massing forces for a possible Gaza invasion, Hamas spokesman Sami Abu Zuhri said: “The Israelis should be aware of the grave results of such a raid and they should bring their body bags.”

Officials in Gaza said 28 Palestinians had been killed in the enclave since Israel began the air offensive with the declared aim of stemming surges of rocket strikes that have disrupted life in southern Israeli towns.

The Palestinian dead include 12 militants and 16 civilians, among them eight children and a pregnant woman. Three Israelis were killed by a rocket on Thursday. A Hamas source said the Israeli air force launched an attack on the house of Hamas’s commander for southern Gaza which resulted in the death of two civilians, one a child.

SOLIDARITY VISIT

A solidarity visit to Gaza by Egyptian Prime Minister Hisham Kandil, whose Islamist government is allied with Hamas but also party to a 1979 peace treaty with Israel, had appeared to open a tiny window to emergency peace diplomacy.

Kandil said: “Egypt will spare no effort … to stop the aggression and to achieve a truce.”

But a three-hour truce that Israel declared for the duration of Kandil’s visit never took hold. Israel said 66 rockets launched from the Gaza Strip hit its territory on Friday and a further 99 were intercepted by the Iron Dome anti-missile system.

Israel denied Palestinian assertions that its aircraft struck while Kandil was in the enclave.

Israel Radio’s military affairs correspondent said the army’s Homefront Command had told municipal officials to make civil defence preparations for the possibility that fighting could drag on for seven weeks. An Israeli military spokeswoman declined to comment on the report.

The Gaza conflagration has stoked the flames of a Middle East already ablaze with two years of Arab revolution and a civil war in Syria that threatens to leap across borders.

It is the biggest test yet for Egypt’s new President Mohamed Mursi, a veteran Islamist politician from the Muslim Brotherhood who was elected this year after last year’s protests ousted military autocrat Hosni Mubarak.

Egypt’s Muslim Brotherhood are spiritual mentors of Hamas, yet Mursi has also pledged to respect Cairo’s 1979 peace treaty with Israel, seen in the West as the cornerstone of regional security. Egypt and Israel both receive billions of dollars in U.S. military aid to underwrite their treaty.

Mursi has vocally denounced the Israeli military action while promoting Egypt as a mediator, a mission that his prime minister’s visit was intended to further.

A Palestinian official close to Egypt’s mediators told Reuters Kandil’s visit “was the beginning of a process to explore the possibility of reaching a truce. It is early to speak of any details or of how things will evolve”.

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-2009, killed more than 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

Tunisia’s foreign minister was due to visit Gaza on Saturday “to provide all political support for Gaza” the spokesman for the Tunisian president, Moncef Marzouki, said in a statement.

The United States asked countries that have contact with Hamas to urge the Islamist movement to stop its rocket attacks.

Hamas refuses to recognize Israel’s right to exist. By contrast, Palestinian President Mahmoud Abbas, who rules in the nearby West Bank, does recognize Israel, but peace talks between the two sides have been frozen since 2010.

Abbas’s supporters say they will push ahead with a plan to have Palestine declared an “observer state” rather than a mere “entity” at the United Nations later this month.

(Additional reporting by Maayan Lubell, Jeffrey Heller and Crispian Balmer in Jerusalem; Writing by Jeffrey Heller; Editing by Giles Elgood)

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New Variety owner Jay Penske slashes one-quarter staff

LOS ANGELES (TheWrap.com) – Jay Penske, the new owner of Variety, laid off nearly a quarter of the company’s staff on Thursday.

Between 20 and 25 employees from the struggling Hollywood trade’s circulation, database and conference departments were laid off. The editorial staff was not affected. Variety had about 120 employees before Thursday’s cuts.

“Without a doubt, this is a challenging day, and I particularly wanted to notify and acknowledge those of you who will be saying goodbye to valued colleagues and friends,” Penske, the CEO of Penske Media Corporation wrote in a memo obtained by the industry blog Deadline, which he also owns. “As we look ahead, Variety’s business holds almost limitless potential and I will remain available to answer any questions you might have regarding today’s changes and our future.”

Penske bought the paper last month at the fire-sale price of $ 25 million. In his memo, Penske said that he planned to invest in the editorial and digital departments while trimming the database services and business branch.

The jobs eliminated came from the LA411 and NY411 units – directories for production resources – and its administration and conference units, according to the memo. Deadline said that the cuts totaled 20 to 25 employees.

He also cut circulation staff, in what may presage a move to cut back on the paper’s printing schedule. Variety currently prints daily during the week and a weekly edition on Friday.

TheWrap previously reported that Penske planned to maintain the print edition and drop the paywall that blocked non-subscribers from reading Variety’s site, placing it in direct competition with competitors like the Hollywood Reporter, TheWrap and its corporate sister Deadline. The paywall has since been torn down.

Neither Penske nor Variety returned calls or emails from TheWrap requesting comment.

Here’s the full memo:

Dear Team

For the past six months, we have diligently reviewed every aspect of the Variety business. And in more recent weeks, we have outlined to Variety senior management an exciting and also aggressive trajectory for the brand’s resurgence. These steps will include substantial further investment in editorial and digital, but will unfortunately require some immediate eliminations in the following business units: LA411/NY411, Circ, Systems, Conferences, and Admin.

Without a doubt, this is a challenging day, and I particularly wanted to notify and acknowledge those of you who will be saying goodbye to valued colleagues and friends. As we look ahead, Variety’s business holds almost limitless potential and I will remain available to answer any questions you might have regarding today’s changes and our future. As always, please don’t hesitate to reach out to me, or see Tammy Chase to arrange an appointment.

Sincerely,

Jay Penske

CEO

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Relentless Afghan conflict leaves traumatized generation

KABUL (Reuters) – On a low bed in a quiet, all-female hospital ward, a depressed Afghan teenager huddles silently under blankets, her mother close by. In a nearby room are men suffering from schizophrenia, delusions of persecution and power, anxiety and panic disorders.

Among them are some of the unseen victims of the war in Afghanistan: a generation of people mentally damaged by their exposure to incessant conflict.

The accumulation of psychological problems could begin to undermine national reconstruction and development, say health workers at the country’s only facility for treating mental illness.

Ghazia Sadid, a 26-year-old mother, endured depression for years after a family member was killed in a bomb attack, and she fled her home in fear of more violence.

“I still hear the sounds of explosions. I still remember the fighting, but since I have come here my behavior has changed,” she said, speaking at the Kabul Mental Health Hospital, a green-walled building on the outskirts of the city.

“I was totally lost and my life was over. After two years of treatment, now I love my children,” she said. “I loved them then too, but in my imagination I had done something wrong.”

The concept of mental illness is alien to many in Afghanistan, where the public health system, like much of the country’s infrastructure, has been wrecked by decades of war.

Frequently, people suffering psychological disorders are thought by their families to be under the influence of malign spirits, or showing symptoms of a physical ailment.

The Kabul hospital, which has 60 beds for in-patients and another 40 in a separate facility for drug addicts, is run by the government in partnership with U.S.-based nonprofit group the International Medical Corps. It gets funding from the European Union.

Psychologists working there say children who have known nothing but fighting since the U.S.-led overthrow of the Taliban government more than a decade ago are especially vulnerable.

“The generation born after 2001 when the international community entered Afghanistan might be 10, 11 year olds now, and I’ve been seeing 11 year olds and 10 year olds nowadays who are presenting with so many mental health problems: nightmares, depression, anxiety, incontinence,” said Mohammad Zaman Rajabi, clinical psychology advisor at the hospital.

Men, women and children come for treatment with drugs, counseling, group therapy and cognitive behavioral therapy.

TRAUMATIZED GENERATION

“If, in a family, there are problems every day it’s obvious that the family members are not well and cannot serve each other properly,” said Taiba Alkazai, a psychologist at the hospital.

“In the same way, if there is fighting in a country then its people won’t be happy.”

The fear of suicide bomb attacks, roadside bombs, and the overall level of violence in Afghanistan – of which civilians bear the brunt, with the number killed rising in 2011 for the fifth straight year to more than 3,000, according to the United Nations – can lead to anxiety, panic and obsession.

“The physical aspects of war (last) for a limited time, but the psychological aspects of the war extend for many years. Day by day the mental health problems caused by the war are increasing,” said consultant psychiatrist Said Najib Jawed.

Just as socially damaging is the risk of a generation for whom violence has become the norm.

“One of the examples I always give is that when you talk to an Afghan boy, you can easily get into a physical fight because they just wait for it, they don’t know any other ways of dealing with a problem than fighting,” Rajabi said.

“All these things will lead to a generation of people who are not very healthy mentally, and this will affect everything in the country: education, relationships, families, generally the development of the country.”

(Editing by Robert Birsel)

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Retailer Comet to close 30 stores

16 November 2012 Last updated at 19:00 ET

The insolvent electrical chain Comet is preparing to close about 30 stores by the end of November, the BBC has learned.

Comet appointed administrators earlier this month, putting 6,611 jobs at risk.

The remaining 206 or so outlets are expected to continue trading over the Christmas period, but their future remains deeply uncertain.

The first of the store closures will begin next week, the Financial Times reported earlier.

The administrators, Deloitte, has already announced 330 job losses at Comet’s headquarters and among administrative staff and there have also been reports that it is preparing to close down the retailer’s home delivery operation.

Comet’s demise was one of the biggest High Street casualties of recent years.

The electricals chain had been hit hard by the drop in consumer spending in the UK since 2008, which has been particularly acute in the case of the big items that Comet sells.

Many of Comet’s customers are first-time home-buyers, according to Deloitte, meaning that business has been hurt by the much tighter conditions in the UK mortgage market.

According to Deloitte, the company had been pushed to the brink by a cash drain caused by suppliers who had been unwilling to provide credit to Comet. Without such credit, the chain was unable to stock-up for Christmas.

Deloitte recently allowed gift vouchers bought by members of the public to be used at stores, days after suspending them, after taking time to “assess the financial position of the company”.

Rival Dixons has offered Christmas jobs to hundreds of Comet staff who face redundancy.

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France urges Mali to step up talks with rebels

PARIS (AP) — France‘s president called Thursday for stepped-up talks between Mali’s government and any leaders from its breakaway north “who reject terrorism,” even as African nations geared up for a possible military operation against Islamic extremists there.

President Francois Hollande‘s comments suggested a growing openness to dialogue with the extremists, but he remained committed to supporting the military planning effort.

Northern Mali fell to Islamic extremists in April, after coup leaders toppled the government in Bamako, Mali‘s capital. Fearing that northern Mali could become the latest hotbed of terrorism, France has been a driving force in international efforts to bolster Mali’s army to drive the Islamists from power.

Hollande spoke with interim Mali President Dioncounda Traore by phone on Thursday, partly to detail European efforts to help strengthen Mali’s army.

In recent days, representatives from the most moderate of three al-Qaida-linked groups that control northern Mali have been meeting with Burkina Faso‘s president, appointed as a mediator.

“France reiterates its wish that political dialogue will intensify between Malian authorities and representatives of northern populations who reject terrorism,” Hollande’s office said in a statement. “The acceleration of this dialogue must accompany the progress in African military-planning efforts.”

Earlier this week, the African Union approved a plan that calls for 3,300 African troops to be deployed in order to win back Mali’s north. European countries including France and Germany have expressed a willingness to provide military trainers and logistics support, but have stopped short of committing combat troops.

France, like many European countries, fears that the arid, northern Sahel region of Mali could become a breeding ground for terrorism, where al-Qaida and its allies could plot hostage-takings and attacks in Europe or beyond.

France has millions of people whose families hail from former French colonies in north and west Africa. Authorities have long been concerned that French-born militants could travel abroad for terrorism training and return home later to possibly carry out attacks.

French authorities are already investigating two French citizens who were arrested in Mali and neighboring Niger and are suspected of seeking to join up with the al-Qaida-linked extremists, a judicial official told The Associated Press.

Ibrahim Ouattara, a 24-year-old native of the northern Paris suburb of Aubervilliers who has dual French and Malian nationality, was arrested inside Mali this month and remains in custody there, the official said.

Separately, a 27-year-old Frenchman was arrested in August in Niger and has since been handed over to authorities in France, the official said, speaking on condition of anonymity because she was not authorized to discuss terrorism cases publicly.

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French mayor ends hunger strike after crisis aid

PARIS (Reuters) – A French mayor who went on hunger strike a week ago to demand emergency aid for his town ended his protest on Thursday and packed up the tent he had been sleeping in outside parliament after the government met his demands.

“I regret that things came to that but it was necessary,” Stephane Gatignon, mayor of Sevran, a poor town on the outskirts of Paris, told Reuters.

Gatignon slept six nights on the pavement outside the National Assembly to press his demand for 5 million euros ($ 6.4 million) of rescue aid, saying the economic crisis was pushing Sevran and dozens of other poor towns to the brink of ruin.

France’s cash-strapped government is seeking to slash its deficit in line with broader efforts to end a debt crisis that has plagued Europe for three years.

While the government is urging local authorities to do their part, it will increase aid to many of the poorest towns next year in a budget package that the lower house of parliament approved this week.

Gatignon said the government had indicated it was willing to deploy those funds in a way that would satisfy his demands. The office of urban affairs minister Francois Lamy did not respond to requests for comment.

The Sevran mayor looked weary but relieved after six days of consuming nothing but sugary tea.

“Today it’ll be a bit of broth, then some soup and slowly back to normal eating,” Gatignon said.

(Reporting by Emile Picy and Brian Love; Editing by Sonya Hepinstall and Robin Pomeroy)

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Walking, cycling may ease cancer-related fatigue: study

(Reuters) – People who have been treated for cancer often have lingering fatigue, but regular walking or cycling might help boost their energy, according to a UK study that looked at more than two thousand people.

The long-lasting tiredness of cancer patients has been blamed both on the cancer itself, including cancer-related pain, and on the effects of treatments such as chemotherapy. Prior studies point to talk therapy, nutrition counseling and acupuncture as possible remedies.

But light-to-moderate exercise has the advantage of being something people can do on their own time, for little or no cost, said the researchers, whose findings appeared in The Cochrane Library.

“We’re not expecting people to go out and be running a mile the next day,” said Fiona Cramp, who worked on the analysis at the University of the West of England in Bristol.

“Some people will be well enough that they’re able to go for a jog or go for a bike ride, and if they can, that’s great. But we would encourage people to start with a low level.”

Cramp and her colleague James Byron-Daniel pooled findings from 38 studies that directly compared more than 2,600 people with cancer-related fatigue who did or didn’t go through an exercise program.

The majority of that research looked at women with breast cancer and the type of exercise program varied, from walking or biking to weight training or yoga. More than half of the studies included multiple exercises or allowed participants to choose their own type of physical activity.

The amount of prescribed exercise ranged from two times per week to daily workouts, lasting anywhere from ten minutes to two hours, depending on the study.

When they combined the results, the researchers found physical activity both during and after cancer treatment was tied to improved energy. In particular, aerobic exercise such as walking and cycling tended to reduce fatigue more than resistance training.

“What we do know is there will be an appreciable difference; the average patient will get a benefit from physical activity,” Cramp said, though the actual benefit will vary.

For example, there were exercise-related benefits for people with breast cancer and prostate cancer, although not for those with leukemia and lymphoma.

“Some of the hematologic patients may not have the reserves to always tolerate the aerobic exercise,” said Carol Enderlin, who has studied fatigue and cancer at the University of Arkansas for Medical Sciences in Little Rock.

“They do not always have the oxygen carrying capacity, for instance,” because the disease and treatment affect blood cell counts. For those people, non-aerobic exercise or exercise at a lower does may be a better option, added Enderlin, who was not part of the research team.

SOURCE: http://bit.ly/TMV6SC

(Reporting by Elaine Lies)

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BP agrees to record criminal penalties for U.S. oil spill

NEW ORLEANS/WASHINGTON (Reuters) – BP Plc will pay $ 4.5 billion in penalties and plead guilty to felony misconduct in the Deepwater Horizon disaster, which caused the worst U.S. offshore oil spill ever.

U.S. Attorney General Eric Holder called the deal a “critical step forward” but was adamant that it did not end the criminal investigation of the 2010 spill.

The settlement announced on Thursday includes a $ 1.256 billion criminal fine, the largest such levy in U.S. history. It was not, however, the “global” settlement some had hoped for, which would have also resolved the considerable federal civil claims against the company at the same time.

“BP lied to me. They lied to the people of the Gulf. And they lied to their shareholders, and they lied to all Americans,” said Representative Ed Markey, the top Democrat on the House Natural Resources Committee who led investigations at the time of the spill.

The government also indicted the two highest-ranking BP supervisors aboard the Deepwater Horizon during the disaster, charging them with 23 criminal counts including manslaughter. One man’s lawyer said his client was being turned into a scapegoat for the disaster.

The April 2010 explosion on the rig in the Gulf of Mexico killed 11 workers. The mile-deep Macondo oil well then spewed 4.9 million barrels of oil into the Gulf over 87 days, fouling shorelines from Texas to Florida and eclipsing in severity the 1989 Exxon Valdez spill in Alaska.

The company said it would plead guilty to 11 felony counts related to the workers’ deaths, a felony related to obstruction of Congress and two misdemeanors. It also faces five years’ probation and the imposition of two monitors who will oversee its safety and ethics for the next four years.

Wall Street analysts said the deal will allow BP to focus again on oil production, while one U.S. senator from Louisiana said he hoped the settlement would not prevent his state and others from collecting civil penalties.

Investors shrugged off the news, and BP shares listed in New York and London were little changed on the day.

“It certainly is an encouraging step,” said Pavel Molchanov, oil company analyst with Raymond James. “By eliminating the overhang of the criminal litigation, it is another step in clearing up BP’s legal framework as it relates to Macondo.”

The disaster has dragged BP from second to a distant fourth in the ranking of top Western oil companies by value.

‘CRIMINAL SCALP’

“With these unprecedented criminal penalties assessed, I urge the Obama administration to be equally aggressive in securing civil monies that can help save our Louisiana coast” through other avenues, Louisiana Senator David Vitter said in a statement. “I certainly hope they didn’t trade any of those monies away just to nail this criminal scalp to the wall.”

Larry Schweiger, president of the National Wildlife Federation, called the settlement a “good down payment” on what BP should ultimately pay, which the environmental group argues is tens of billions of dollars more.

BP said the payments would be spread over six years, and that it expected to be able to handle the payments “within BP’s current financial framework.”

The company has sold $ 35 billion worth of assets to fund the costs of the spill. Matching that, it has paid $ 23 billion already in clean-up costs and claims, and has a further $ 12 billion earmarked for payment in its spill trust fund.

The oil company said it has not been advised of any government authority that intends to debar BP from federal contracting activities as a result of the deal.

‘RECKLESS MANAGEMENT’

The lawyers for Bob Kaluza, the BP well manager aboard the rig who faces manslaughter charges, condemned the case against the four-decade oilfield veteran.

“Bob was not an executive or high-level BP official. He was a dedicated rig worker who mourns his fallen co-workers every day,” Shaun Clarke and David Gerger said in a statement.

Kaluza faces two kinds of charges related to the workers’ deaths: Involuntary manslaughter, a broad statute covering individuals whose reckless disregard leads directly to loss of life; and seaman’s manslaughter, reserved for those employed on ships whose misconduct results in death.

As for BP, its settlement does not resolve civil litigation brought by the U.S. government and U.S. Gulf Coast states, which could be considered when the case convenes in February 2013.

Alabama Attorney General Luther Strange, who represents other spill-hit states in the case, said he intends to prove that BP’s actions were grossly negligent – a charge that would bring billions of dollars in extra liability if upheld. Louisiana Governor Bobby Jindal agreed in a statement.

“The majority of BP’s liability remains outstanding and we will hold them fully accountable,” he said.

Holder said at a news conference to discuss the criminal settlement that while the government and BP had held talks to resolve the civil claims, the sides had not been able to agree on a “satisfactory” number. He said a deal was still possible but the government was moving ahead to the February trial.

Negligence is a key issue. A gross negligence finding could nearly quadruple civil damages owed by BP under the Clean Water Act to $ 21 billion.

Chief Financial Officer Brian Gilvary said the company’s provisions should be enough to cover liabilities, provided it avoids a conviction for gross negligence, and that it had shareholder support to fight the case should that happen.

“I can boldly defend where we are in the provisions today. If something were to happen in the trial that read across to gross negligence … then we would certainly take that to appeal,” he said on a conference call with analysts.

Still unresolved is potential liability faced by Swiss-based Transocean Ltd, owner of the Deepwater Horizon vessel, and Halliburton Co, which provided cementing work on the well that U.S. investigators say was flawed.

Halliburton said it “remains confident that all the work it performed with respect to the Macondo well was completed in accordance with BP’s specifications for its well construction plan and instructions. Halliburton has cooperated with the DOJ’s investigation.” Transocean was not available for comment.

According to the Justice Department, errors made by BP and Transocean in deciphering a pressure test of the Macondo well are a clear indication of gross negligence.

Transocean disclosed in September that it is in discussions with the Justice Department to pay $ 1.5 billion to resolve civil and criminal claims.

BP has already announced an uncapped class-action settlement with private plaintiffs that the company estimates will cost $ 7.8 billion to resolve litigation brought by over 100,000 individuals and businesses claiming economic and medical damages from the spill.

(Additional reporting by Chris Baltimore and Anna Driver in Houston, Braden Reddall in San Francisco, Roberta Rampton in Washington, Verna Gates in Birmingham, Ala. and Andrew Callus in London; Writing by Ben Berkowitz; Editing by Edward Tobin, David Gregorio, Richard Chang and Tim Dobbyn)

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Canada’s Carney says rate hikes “less imminent”

TORONTO (Reuters) – Interest rate hikes have become less imminent than the Bank of Canada once expected, although rates are still likely to rise, central bank Governor Mark Carney said in an interview published on Saturday.

“Over time, rates are likely to increase somewhat, but over time, so a less imminent timing relative to our expectation,” Carney said in an interview with the National Post newspaper.

Canada’s economy rebounded better than most from the global economic recession, and the Bank of Canada is the only central bank in the Group of Seven leading industrialized nations that is currently hinting at higher interest rates.

But Carney has also made clear that there will be no rate rise for a while, despite high domestic borrowing rates that he sees as a major risk to a still fragile economy.

“We’ve been very clear in terms of lines of defense in addressing financial vulnerabilities,” he said in the interview. “And the most prominent one, obviously, in Canada, is household debt.”

He said the bank was monitoring the impact of four successive government moves to tighten mortgage lending, which aimed to take the froth out of a hot housing market without causing a damaging crash in prices.

A Reuters poll published on Friday showed the majority of 20 forecasters believe the government has done enough to rein in runaway prices, preventing the type of crash that devastated the U.S. market.

The experts expect Canadian housing prices to fall 10 percent over the next several years, but they do not expect the recent property boom to end in a U.S.-style collapse.

(Reporting by Janet Guttsman; Editing by Vicki Allen)

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Texas Instruments cuts 1,700 jobs, winds down tablet chips

NEW YORK/SAN FRANCISCO (Reuters) – Texas Instruments is eliminating 1,700 jobs, as it winds down its mobile processor business to focus on chips for more profitable markets like cars and home appliances.

Texas Instruments said in September it would halt costly investments in the increasingly competitive smartphone and tablet chip business, leading Wall Street to speculate that part of the company’s processor unit, called OMAP, could be sold.

The layoffs are equivalent to nearly 5 percent of the Austin, Texas-based company’s global workforce.

“A sale would have been better than a restructuring but a restructuring is certainly better than nothing,” Sanford Bernstein analyst Stacy Rasgon said.

TI has been under pressure in mobile processors, where it has lost ground to rival Qualcomm Inc. Leading smartphone makers Apple Inc and Samsung Electronics Co Ltd have been developing their own chips instead of buying them from suppliers like TI.

Instead of competing in phones and tablets, TI wants to sell its OMAP processors in markets that require less investment, like industrial clients like carmakers.

TI is expected to continue selling existing tablet and phone processors for products like Amazon.Com Inc‘s Kindle tablets for as long as demand remains, but stop developing new chips.

“This year, the Kindle runs on the OMAP 4 and next year’s Kindle is slated, we believe, for OMAP 5. We believe that program is well along to completion and do not expect that the termination of OMAP will disrupt those plans,” said Longbow Research analyst JoAnne Feeney.

Amazon had reportedly been in talks to buy the mobile part of OMAP.

TI said it expects to take charges of about $ 325 million related to the job cuts and other cost reduction measures, most of which will be accounted for in the current quarter. Its previously announced financial targets for the fourth quarter do not include these costs, TI said.

The company, which has 35,000 employees around the world, expects annualized savings of about $ 450 million by the end of 2013 from the action.

TI shares rose to $ 29 in after-hours trading after closing at $ 28.76, down 2 percent on Nasdaq.

(Reporting By Sinead Carew in New York and Noel Randewich in San Francisco; editing by Carol Bishopric)

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Judge throws out Justin Bieber paparazzo chase case

LOS ANGELES (Reuters) – Criminal charges filed against a photographer who pursued teen pop star Justin Bieber at high speeds on a Los Angeles freeway in July were thrown out on Wednesday, striking a blow to California’s crackdown on overly aggressive paparazzi.

Celebrity photographer Paul Raef was the first person to be prosecuted under the state’s 2010 law that criminalizes dangerous driving when taking photos commercially.

Raef was charged in July with two counts of violating the law stemming from a July 6 incident on a freeway in Los Angeles‘ San Fernando Valley.

Dismissing the charges, Los Angeles Superior Court Judge Thomas Robinson called the state’s anti-paparazzi law “problematic” and “overly inclusive.”

The law “sweeps very widely and would increase the penalties for reckless driving” in unintended cases, Robinson said.

Robinson faulted the law’s vague definition of commercial photography, saying that it could also apply to a photographer who was speeding to reach an arranged photo shoot with Bieber.

Raef could have faced up to a year in prison and $ 3,500 in fines, if convicted. His attorney, Brad Kaiserman, said the law is “about protecting celebrities.”

A message left with Bieber’s publicist requesting comment was not immediately returned.

Raef still faces lesser charges of misdemeanor reckless driving and failing to obey police orders after he allegedly pursued Bieber, 18, at high speeds. He will be tried on those charges at a later date.

Bieber, who was pulled over by police for driving 80 miles per hour in a 65 mph zone, told officers at the time that he was being hounded by paparazzi, and police said they noticed Raef’s car following the “Boyfriend” singer.

About 30 minutes after the traffic stop, Bieber called police to report that Raef continued to follow him. Police later found Raef and other paparazzi together in downtown Los Angeles.

The Canadian singer received a speeding ticket at the time.

(Reporting By Eric Kelsey, editing by Jill Serjeant and Sandra Maler)

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Egypt recalls envoy to Israel after Gaza strike

CAIRO (AP) — Egypt has recalled its ambassador to Israel after an Israeli airstrike killed the military commander of Gaza‘s ruling Hamas.

In a statement read on state TV late Wednesday, spokesman Yasser Ali said that President Mohammed Morsi recalled the ambassador and asked the Arab League‘s Secretary General to convene an emergency ministerial meeting in the wake of the Gaza violence.

Morsi also called for an immediate cease fire between Israel and Hamas, an offshoot of Morsi’s Muslim Brotherhood. Israel says it struck in response to rocket attacks from Gaza.

Hours earlier, Morsi’s Muslim Brotherhood group denounced the Israeli airstrike as a “crime that requires a quick Arab and international response to stem these massacres.”

Relations between Israel and Egypt have deteriorated since longtime President Hosni Mubarak was ousted last year.

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Android 4.2 For Nexus 7, Galaxy Nexus Now Available

When Google’s Nexus 10 tablet was unveiled recently, it was running Android 4.2, a new version which adds several features. That version is coming to your Nexus 7 or Galaxy Nexus device as well. Here’s what Android 4.2 brings, where to get it, and which Nexus devices are missing out.

​New features in Android 4.2

Mashable’s Christina Warren has the scoop on what Android 4.2′s bringing. Flashy additions include Daydream, a sort of screensaver for your smartphone or tablet, and Photo Sphere, a new way to take panoramic photographs that capture the whole world around you. Right now you can only see Photo Sphere images on Google+ or in Google Maps, but according to David Ruddock of the Android Police blog Google has made it so “Anyone could, in theory, build a Photo Sphere viewer.”

Less immediately noticeable improvements include a Swype-style gesture keyboard, where you don’t need to type individual letters, and a feature that lets multiple people share the same Android tablet without their apps and things getting in each others’ way. You’ll also be able to mirror your Android device’s screen on your HDTV, Apple AirPlay style, although instead of an Apple TV box you’ll need a third-party wireless display adapter.

​Who’s getting the upgrade now

Nexus 7 owners are already beginning to receive the Android 4.2 upgrade over the air. Your tablet will automatically check for it every so often, but if you want to hurry it along you can go to Settings -> About tablet -> System updates, and tell it to check again. You can also download it from Google and manually install it using Liam Spradlin’s instructions, although this is not recommended unless you’re an experienced Android hacker and are using the Wi-Fi version of the Nexus 7.

Galaxy Nexus owners who bought their phones from a wireless carrier have had to wait an unusually long time for upgrades, as long as several months after a new Android version’s announced. If you bought your Galaxy Nexus phone from a wireless carrier, an upgrade probably won’t be available anytime soon. People who purchased their Galaxy Nexus from the Google Play store are reporting that they are getting the upgrade, though, and Spradlin again has instructions for how to install manually if you are using a Galaxy Nexus bought from the Google Play store.​

Who’s being left out

While announcing that Android 4.2′s programming code was being released to the Android Open-Source Project, Google rep Jean-Baptiste Queru said “There is no support for 4.2 on Nexus S and Xoom.” The Nexus S was a Nexus smartphone released about two years ago, in late 2010, while the Motorola Xoom was the first tablet released (in early 2011) running the Honeycomb version of Android. The Xoom was not an official Nexus device, but was also made in close partnership with Google, and showcased the latest Android software.

Both devices received upgrades to Android 4.1, the first Jelly Bean version. It looks like this is where the upgrade train ends for them, though, after almost two years of support. In contrast, Apple’s iPhone 3GS, released in mid-2009, just recently received an upgrade to the latest version of iOS.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

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NBC names new “Today” show chiefs

(Reuters) – Comcast‘s NBC has appointed two executives to take charge of the “Today” show, a day after the television network announced that longtime producer Jim Bell would be leaving to take a larger role in the sports division.

Don Nash, a broadcast producer who has worked on NBC’s morning show for 23 years, will become the executive producer, reporting to Alexandra Wallace, who has been named executive in charge of the show.

The reshuffling is part of NBC efforts to revive the “Today” show, which has been in a back-and-forth ratings war with ABC’s “Good Morning America” ever since ABC snapped NBC’s 16-year unbeaten streak earlier in the year.

“Today” is one of NBC’s most profitable TV shows, generating $ 485 million in ad revenues in 2011, up 6.6 percent from 2010, according to Kantar Media, which provides data to advertisers. Rival “Good Morning America” took in $ 299 million last year.

NBC said on Tuesday that former executive producer Bell would be leaving the morning show to become a full-time executive producer of the Olympics. The network has a contract to broadcast the Olympics in the United States for the next four games in Russia, Brazil, South Korea and an unnamed host city in 2020.

Bell, who has headed the show since 2005, was blamed this year for the controversial firing of Ann Curry as anchor alongside Matt Lauer.

Reuters had previously reported in August that Bell was in line for a kind of uber-producing sports role like the one Dick Ebersol – NBC’s longtime Olympics executive producer and former sports chief who served as a mentor to Bell – played for the network.

(Reporting By Liana B. Baker; Editing by Tim Dobbyn)

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FDA seeks more authority amid meningitis outbreak

WASHINGTON (AP) — The head of the Food and Drug Administration asked Congress Wednesday for more authority to police pharmacies like the one that triggered a deadly meningitis outbreak, even as lawmakers questioned why the agency didn’t do more with its existing powers.

FDA Commissioner Margaret Hamburg called for new laws to clarify her agency’s authority to crack down on companies like the New England Compounding Center, which distributed contaminated pain injections that have sickened more than 460 Americans and caused 32 deaths.

Members of the House Energy and Commerce Committee spent most of the first hearing on the outbreak questioning state and federal regulators about why they didn’t act sooner against the company.

A timeline assembled by the committee’s Republican staff showed that the FDA and the Massachusetts board of pharmacy investigated the pharmacy more than a dozen times in the past decade. In particular, lawmakers pointed to a 2002 FDA inspection that found contamination issues with the same steroid implicated in the latest recall.

“I was stunned and angered to learn that an inspection of the NECC by the FDA and the Massachusetts board of pharmacy over 10 years ago identified contamination in the very same drug at issue in the current outbreak,” said Rep. Fred Upton, R-Mich., who chairs the committee.

Hamburg told lawmakers that the problems uncovered in inspections were “very serious,” but that the agency was obligated to defer to Massachusetts authorities, who have more direct oversight over pharmacies.

Hamburg emphasized repeatedly the difficulty of taking action against compounding pharmacies, which have long operated in a legal gray area between state and federal law.

“The challenge we have today is that there is a patchwork of legal authorities that oversee the regulatory actions we can take,” said Hamburg, who was nominated to head the FDA by President Obama in 2009.

Compounding pharmacies traditionally fill special orders placed by doctors for individual patients, turning out a small number of customized formulas each week. They are typically overseen by state pharmacy boards.

In the last two decades some compounders, like the NECC, have grown into large businesses that ship thousands of doses of drugs to multiple states. Hamburg said that when her agency tries to intervene in those cases they face a “crazy quilt,” of court rulings, which are split on whether the federal government has authority over pharmacies.

Republicans pressed Hamburg to answer simple “yes or no” questions about the agency’s stance, to which she countered with lengthy, nuanced explanations. Lawmakers repeatedly accused the commissioner of evading their questions.

“You’re the grand poobah of the FDA and I’m asking you, ‘could you have prevented this tragedy?’ and you’re saying you couldn’t have because you don’t have jurisdiction,” said Rep. Cliff Stearns, R-Fla., in one particularly heated exchange.

“No, I’m saying it’s very hard to know if any one action we might have taken would have stopped this terrible tragedy,” Hamburg said.

Even some Democrats, who normally side with Obama administration officials at such hearings, seemed to lose their patience.

“We have to figure out how to give you the jurisdiction to do what you need to do … and these inconclusive answers are not helping us,” said Rep. Diana DeGette, D- Colo.

In prepared testimony, Hamburg suggested putting in place a two-tier system in which traditional compounding pharmacies continue to be regulated at the state level, but larger pharmacies would be subject to FDA oversight. Hamburg said regulators would have to consider multiple factors, including how much interstate business a pharmacy does, to identify non-traditional compounders.

These non-traditional pharmacies would have to register with the FDA and undergo regular inspections, similar to pharmaceutical manufacturers. Large compounding pharmacies would also have to meet the more stringent manufacturing standards required of pharmaceutical companies.

Earlier in the hearing, the owner and director of the NECC declined to testify, invoking his Fifth Amendment right to not answer questions in order to avoid self-incrimination.

Despite his silence, lawmakers repeatedly pressed Barry Cadden to account for the problems that led to the outbreak.

“Mr. Cadden, what explanation can you give the families who have lost their loved ones, and those who are gravely ill, for the actions of your company?” asked Stearns, who heads the subcommittee on oversight and investigations.

Flanked by two lawyers, Cadden told lawmakers, “Under advice of counsel, I respectfully decline to answer under basis of my constitutional rights and privileges, including the Fifth Amendment.”

Federal officials have opened a criminal investigation of Cadden and the NECC.

The Framingham, Mass.-based pharmacy has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license.

Inspections last month found a host of potential contaminants at NECC’s facility, including standing water, mold and water droplets. Compounded drugs are supposed to be prepared in temperature-controlled clean rooms to maintain sterility.

Cadden appeared immediately after the widow of a longtime Kentucky judge, who died of fungal meningitis after receiving multiple doses of NECC’s steroid injection. Fungal meningitis causes inflammation of the lining of the brain and spinal cord.

Speaking without notes, Joyce Lovelace told lawmakers of more than 50 years of marriage to 78-year-old Eddie Lovelace, who was a circuit judge before his death on Sept. 17 at Vanderbilt University Medical Center.

“My family is bitter, we are angry, we are heartbroken and devastated. I come here begging you to do something about the matter,” Lovelace said.

Health officials say as many as 14,000 people received the methylprednisolone acetate steroid shots, mostly for back pain. The Centers for Disease Control later showed that at least two lots of the injections distributed to 23 states were contaminated with fungus. The outbreak was first discovered in September, though CDC officials say the earliest deaths connected to the outbreak date back to July.

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Chinese Communist Party to unveil new leadership

BEIJING (Reuters) – China‘s ruling Communist Party unveils a new leadership line-up on Thursday to steer the world’s second-largest economy for the next five years, with Vice President Xi Jinping taking over from outgoing President Hu Jintao as party chief.

The new members of the Politburo Standing Committee – the innermost circle of power in China’s authoritarian government – will emerge around 0300 GMT (10 p.m. EDT on Wednesday) after a closely controlled vote by the party’s new 205-member central committee, which was installed at the end of a five-yearly party congress on Wednesday.

Only Xi and Vice Premier Li Keqiang are certain to be on the new standing committee. Xi will take over Hu’s state position in March at the annual meeting of parliament, when Li will succeed Premier Wen Jiabao.

The committee is expected to be reduced to seven seats from nine to make consensus-building easier.

The other preferred candidates, according to sources close to the party leadership, are North Korean-trained economist Zhang Dejiang, financial guru Wang Qishan, minister of the party’s organization department Li Yuanchao, Tianjin’s party boss Zhang Gaoli, and the conservative Liu Yunshan, who has kept domestic media on a tight leash.

The list of the conservative-leaning preferred candidates was drawn up by Xi, Hu and Hu’s predecessor, Jiang Zemin, the sources said.

Wang, currently vice-premier in charge of economic affairs, is popular with foreign investors but seems set to lead the fight against corruption, having been elected to the party’s main anti-graft body on Wednesday.

Guangdong’s reform-minded party boss Wang Yang, Shanghai party boss Yu Zhengsheng and Liu Yandong, the lone woman, are dark horse candidates.

All eight of these people were on the list for the new central committee, the largest of the party’s top decision-making bodies. Exclusion from that committee means a person cannot progress to the Politburo or the standing committee.

The new leadership will emerge on Thursday morning to “meet the press” in a room in the cavernous, Soviet-style Great Hall of the People, which has been decked out in enormous red flags.

Intense secrecy has also surrounded who and how many will be promoted to the Politburo, a council of 20-odd members, and the all-powerful standing committee.

The composition of the two elite bodies could give clues to China’s political and economic direction, especially if they end up being dominated by conservatives.

Advocates of reform are pressing Xi to cut back the privileges of state-owned firms, make it easier for rural migrants to settle in cities, fix a fiscal system that encourages local governments to live off land expropriations and, above all, tether the powers of a state that they say risks suffocating growth and fanning discontent.

With growing public anger and unrest over everything from corruption to environmental degradation, there may also be cautious efforts to answer calls for more political reform, though nobody seriously expects a move towards full democracy.

The party could introduce experimental measures to broaden inner-party democracy – in other words, encouraging greater debate within the party – but stability remains a top concern and one-party rule will be safeguarded.

Another decision to watch will be chairman of the Central Military Commission. Hu may or may not choose to stay on in that post for a year or two, as did his predecessor, Jiang.

Which standing committee member gets which portfolio depends, in this hierarchical and top-down state, on the order members appear for the first time together on stage.

While the first person out will be Xi, signifying his position as party leader and president-designate, the party’s second-ranked position is head of the largely rubber stamp parliament, leaving the premier in third place.

But portfolios of the second and third-ranked leaders are likely to be reversed, giving Li higher status, sources have said.

Fourth position has historically been occupied by the head of the ceremonial advisory body to parliament, while fifth could be either vice president or propaganda tsar, sixth the executive vice premier and seventh the person in charge of fighting graft.

One position almost certain to go is that held by Zhou Yongkang, the domestic security tsar, reflecting fears the role has become too powerful.

(Additional reporting by Benjamin Kang Lim; Editing by Nick Macfie and Raju Gopalakrishnan)

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Congress, Obama playing with dynamite, CEOs say of “fiscal cliff”

BOSTON (Reuters) – Corporate America is raising the volume of its plea that the U.S. government avert a year-end “fiscal cliff” that could send the nation back into recession, but chief executives aren’t pushing the panic button just yet.

With a heated election season in the rear-view mirror, executives are calling on the White House and congressional leaders to head off a self-imposed deadline that could bring $ 600 billion in spending cuts and higher taxes early in 2013 if they are unable to reach a deal on cutting the federal budget deficit.

The Business Roundtable on Tuesday kicked off a print, radio and online ad campaign on which it plans to spend hundreds of thousands of dollars featuring the chiefs of Honeywell International Inc , Xerox Corp and United Parcel Service Inc calling on lawmakers to resolve the issue.

In an opinion piece published on Tuesday evening on the Wall Street Journal’s website, Goldman Sachs Chief Executive Officer Lloyd Blankfein urged the business community and the Obama administration to compromise and reconcile so as not to derail the fragile recovery.

One of the more dramatic warnings of the consequences of allowing the U.S. economy to go over the fiscal cliff came from Honeywell CEO David Cote.

“If the last debt ceiling discussion was playing with fire, this time they’re playing with nitroglycerin,” Cote said in an interview. “If they go off the cliff, I think it would spark a recession that’s a lot bigger than economists think. Some think it would just be a small fire. I think it could turn into a conflagration.”

The nonpartisan Congressional Budget Office (CBO) estimates that the U.S. economy would contract 0.5 percent in 2013 if the government fails to stop the budget cuts and tax increases – far below the 2 percent growth economists currently forecast.

A failure in Washington to solve the crisis by the year’s end could prompt major companies to curtail investment plans, said Duncan Niederauer, CEO of NYSE Euronext , operator of the New York Stock Exchange.

“We simply won’t be investing in the United States. We will be investing elsewhere where we have more certainty of the outcome,” Niederauer said in an interview.

About a dozen top U.S. CEOs, including General Electric Co’s Jeff Immelt, Aetna Inc’s Mark Bertolini, American Express Co’s Ken Chenault and Dow Chemical Co’s Andrew Liveris are scheduled to meet with President Barack Obama on Wednesday to discuss the issue.

The four are members of “Fix the Debt,” an ad-hoc lobbying organization that this week launched an advertising campaign that advocates long-term debt reduction.

UNCERTAINTY FACTOR

Bank of America Corp CEO Brian Moynihan said on Tuesday that worries about the cliff have companies holding off on spending.

“That uncertainty continues to hold back the recovery,” Moynihan said, speaking at an investor conference in New York.

Sandy Cutler, CEO of manufacturer Eaton Corp , shared his concern.

“Until we solve the fiscal issues (in the United States and Europe), you’re not going to get back to normal GDP growth,” Cutler told investors on Tuesday.

CEOs are not alone in this worry. The CBO report warned that failure to reach a deal could push the U.S. unemployment rate up to 9.1 percent, the highest since July 1991. It is currently 7.9 percent.

Obama and the Republican leadership of the House of Representatives have signaled a more conciliatory tone since last week’s election, when Obama soundly defeated Republican challenger Mitt Romney, whose party retained a majority in the House.

Wilbur Ross, an investor known for taking stakes in distressed companies, is bracing for higher tax rates in 2013.

“We, like many people, have been trying to utilize gains this year. It does seem that the probability is that rates will go up,” Ross said in an interview with Reuters Insider. “We don’t have a “for sale” sign on anything. But we are mindful that there is a benefit to concluding things this year rather than next.

NO SIGNS OF PANIC

Concerns about the cliff have not prompted customers to cancel orders, though they have added to an overall level of uneasiness that has companies wary of making large capital purchases or hiring significant numbers of new workers.

“We haven’t seen the panicking, like, ‘I’m not going to order something because of the fiscal cliff,’” said Steve Shawley, chief financial officer of heating and cooling systems maker Ingersoll Rand Plc . “Customers are being very judicious with their orders.”

Likewise, JPMorgan Chase & Co CEO Jamie Dimon last month told investors he did not expect the negotiations to hurt lending in the fourth quarter.

“The fiscal cliff isn’t going to change us,” Dimon said, referring to JPMorgan’s commercial bank, which loans money to businesses. The bank’s investment banking side could be more vulnerable if the debate makes investors jittery, he allowed.

WEAPONS, MEDICINES IN THE CROSS-HAIRS

The defense and healthcare sectors are the most vulnerable to the fiscal cliff, as they face the threat of sequestration — automatic, across-the-board cuts to their funding.

Makers of weapons systems note that they have long been preparing for declining sales as the United States winds down two long wars in Iraq and Afghanistan. The industry has already shed tens of thousands of jobs and closed facilities.

Lockheed Martin Corp’s new president and chief operating officer, Marillyn Hewson, told analysts on Monday her company had been preparing for tighter defense budgets for years, even before the sequestration deal.

“We aren’t going to see a major change,” said Hewson. “We’ve been very proactive as a leadership team in taking actions in recent years to address our cost structure, to look at how we can make our product more affordable.”

Automatic cuts to the federal budget could reduce federal health spending by $ 21.5 billion in 2013, potentially affecting everything from Medicare to the Food and Drug Administration, according to an analysis by PwC’s Health Research Institute.

Vincent Forlenza, the CEO of Beckton Dickinson & Co , said the labs he supplies have held off on buying new instruments because of the threat of spending cuts.

“If we don’t get to a deal we will have another year of paralysis and putting off research,” Forlenza said. “The impact of uncertainty on the (National Institutes of Health) budget is causing our research customers to put off research.”

(Additional reporting by John McCrank, Nick Zieminski, Caroline Humer, Jed Horowitz, Sharon Begley and Daniel Wilchins in New York, Rick Rothacker in Charlotte, North Carolina, Nichola Groom in Los Angeles, Andrea Shalal-Esa in Washington, Debra Sherman in Chicago and Anna Driver in Houston; Editing by Patricia Kranz and Steve Orlofsky and Carol Bishopric)

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

___

Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is “relieved that this painful allegation has been put to rest.” He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces “Sesame Street” in New York, soon followed by saying, “We are happy that Kevin can move on from this unfortunate episode.”

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from “Sesame Street” in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop “to deal with this false and defamatory allegation.”

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of “Sesame Street.”

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, “My Life as a Furry Red Monster,” and he was the subject of the 2011 documentary “Being Elmo: A Puppeteer’s Journey.”

He has won 23 daytime Emmy awards and one prime-time Emmy.

___

Online:

http://www.sesamestreet.org

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Hospira says FDA blocks import of Symbiq infusion pump

(Reuters) – The U.S. Food and Drug Administration has prohibited Hospira Inc from importing its Symbiq medication infusion pumps, which are manufactured in Costa Rica, into the United States, the company said Tuesday in a regulatory filing.

Hospira in the filing did not say why the FDA imposed the restriction. A Hospira spokesperson could not be immediately reached.

The company said the FDA’s action does not restrict importation of its other medication management products, and the company does not expect it will have a material impact on its ability to achieve its 2012 financial projections.

In August, Hospira announced it received a warning letter from the FDA over quality problems at the Costa Rica plant where it makes most of its infusion pumps. Among the issues cited were alarm failures on the company’s Plum brand of infusion pump.

At the time, the company said it was switching alarm components for the Plum pump, which was recalled in February 2011, and expected to complete that process by early 2013.

Hospira on November 7 said it had placed a voluntary hold on shipments of the Symbiq pumps to new U.S. customers. A day later, the FDA notified the company of the import restriction, Hospira said.

Last month, the FDA said some Symbiq models were recalled due to software issues after Hospira received reports from customers of touch screens that were not responsive, delaying therapy.

The Lake Forest, Illinois-based maker of medical devices and injectable specialty drugs said it will support the repair and replacement of Symbiq pumps to existing customers.

Hospira has been working for several years to resolve manufacturing issues at some of its plants. In February, it resumed production of injectable drugs at its Rocky Mount, North Carolina, plant after a maintenance shutdown. Manufacturing problems at that plant had let to shortages of anesthesia and other drugs for its customers.

Hospira shares were little changed in after-hours trading from Tuesday’s close of $ 29.60 on the New York Stock Exchange.

(Reporting by Susan Kelly in Chicago; Editing by Leslie Adler and Phil Berlowitz)

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Best Buy CEO sets goals; Wall Street begs for more details

(Reuters) – Best Buy Co Inc hopes to triple its operating margins over time, the company said on Tuesday, though investors and analysts were left wanting for details on how – and how soon – the new chief executive would turn around the world’s largest consumer electronics chain.

The aggressive new targets come as Best Buy faces cut-throat competition from online and discount retailers like Wal-Mart Stores Inc and Amazon.com Inc .

CEO Hubert Joly got a difficult reception at an investor day in New York, as people questioned whether management was focusing too much on wringing higher sales out of existing customers rather than attracting new ones. Joly was named CEO on August 20.

“I still think I am a little bit mixed on digesting the take-aways of the presentation. I think they said a lot of good things, but I think people were looking for a little bit more of a playbook and the next steps,” said John Tomlinson, an analyst with ITG Investment Research, in New York. “There’s a lot of pieces to the fixing story that seemed a little opaque and vague.”

Best Buy’s stock closed nearly 1 percent lower at $ 15.70 on Tuesday, continuing a slide that has knocked off a third of the company‘s market capitalization this year. The stock touched a 10-year low of $ 14.39 a week ago.

Dimitri van Toren, senior portfolio manager at Dutch asset manager Syntrus Achmea, which holds about 200,000 Best Buy shares, said he was worried about structural issues and a “management vacuum” at the retailer, but that he would stay in the stock despite concerns about the upcoming holiday season.

The meeting took place against the backdrop of a potential buyout offer from founder and former CEO Richard Schulze, who is expected to make an offer as soon as next month.

“I spend no time worrying about what our corporate structure will be,” Joly told reporters after the event. “I tend to focus on decisions I can influence rather than decisions I can’t influence.”

A representative for Schulze did not immediately respond to a request seeking his thoughts on Joly’s plan.

Joly said “it would have been ridiculous” to offer more concrete details after only a few weeks on the job. He said this meeting was more about setting the record straight and reassuring investors about the company’s future.

“The perception was that Best Buy was dying,” Joly said.

MARGIN TARGETS

In a statement on Tuesday, the company said its short-term goal will be “to stabilize and then begin increasing its comparable-store sales and operating margin.” Over time, it is aiming for a return on invested capital of 13 percent to 15 percent, in addition to a 5 percent to 6 percent operating margin target.

In the last fiscal year, Best Buy had an operating margin of about 2.1 percent. The last time that margin exceeded 5 percent was in the fiscal year that ended in early 2008.

Joly said a mixture of excessive costs and price competition hurt margins, and that the retailer would turn to a wider variety of higher-margin, private-label products to boost results. One example is the company’s own Insignia-brand electronics.

Best Buy has been struggling to combat a phenomenon known as “showrooming,” where people visit its stores to look at products and then buy them online for less.

Joly acknowledged the company has suffered from a “price perception issue” among customers that it needed to address, as well as weakness in its online operations.

The head of the company’s digital business said its online conversion rate – which measures how successfully Best Buy translates customer visits into actual sales – was only about half of what it should be.

“Many of these problems are a result of our own making,” Joly said during the investor presentation.

HOLIDAYS COMING

Best Buy also said on Tuesday that it would pursue a plan to “optimize its store footprint on an ongoing basis,” which suggested the company may look at ways to shrink or close stores, as some other big-box retailers have done. In late March, the company said it would close 50 large U.S. stores.

Joly warned that merely closing stores would not boost operating income, as most of the big-box stores are already profitable. Relocation to smaller space may be an option, however; he said 71 percent of the large-format stores have leases expiring within the next six years.

The details of Joly’s long-awaited plan came roughly a week before the unofficial start of the year’s biggest selling season.

The retailer, which has posted declines in same-store sales in eight of the last nine quarters, warned last month it expected earnings and same-store sales to fall again in the third quarter.

“I am already sick and tired of negative comps,” Joly said, referring to same-store sales figures.

The CEO also admitted a number of past investments have not paid off and promised the new leadership would be “prudent” about that in the future, a nod to Wall Street’s lingering concerns about spending by past management.

(Reporting by Dhanya Skariachan in New York; Writing by Ben Berkowitz; Editing by Maureen Bavdek, Phil Berlowitz, Matthew Lewis and Jan Paschal)

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TSX drops to two-month low on U.S., Europe fears

TORONTO (Reuters) – Canada‘s main stock index slipped to a two-month low on Tuesday, dragged down by resource and financial shares, as investors fixated on fears of a fiscal crisis in the United States and economic turmoil in Europe.

The Toronto Stock Exchange‘s S&P/TSX composite index <.GSPTSE> unofficially closed down 56.80 points, or 0.47 percent, at 12,134.66.

(Reporting by Claire Sibonney; Editing by Jeffrey Hodgson)

Economy News Headlines – Yahoo! News

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