NKorea rocket launch shows young leader as gambler






PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.


Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.






The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.


Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.


Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.


Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.


The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.


“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.


The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.


Top officials followed Kim in shrugging off international condemnation.


Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.


North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.


Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”


But it is the son who will bask in the glory, and face the international censure that may follow.


Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.


“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.


“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”


Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.


Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.


“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.


Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”


Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.


The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.


On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.


Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.


North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.


The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.


Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.


If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.


____


Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.


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Roll Up! “Magical Mystery Tour” gets U.S. TV debut






LOS ANGELES (Reuters) – Give four pop stars turned hippies a movie camera in 1967 and what do you get? The Beatles‘ “Magical Mystery Tour” film, which will receive its long-awaited U.S. broadcast television debut on Friday on PBS.


Long a curiosity in the United States, the film will be accompanied by a new documentary about its making. A restored version was released on DVD and blu-ray in October.






The third film for The Fab Four, after a “A Hard Day’s Night” in 1964 and “Help!” a year later, “Magical Mystery Tour” is a shambolic trip through the English countryside on a bus filled with odd characters, but thin on plot. It first aired on BBC television the day after Christmas 1967.


Although it was initially panned by British critics, time has delivered some justice to the project, Jonathan Clyde, the producer of the documentary, told Reuters.


“‘Magical Mystery Tour‘ has always been the black sheep of the Beatles family, but I think it’s been rehabilitated into the Beatles canon,” Clyde said. “It’s no longer the ‘mad uncle in the attic’ that nobody wants to talk about. It’s been let out.”


In the United States, little was known about the film at the time of its release.


Beatles fans only had the album of music, or saw a poor print of the film in a double-feature midnight showing with “Reefer Madness,” a 1936 anti-marijuana propaganda film often screened decades later for comedic effect.


“I first saw it in 1974 at a university,” Bill King, the longtime publisher of Beatles fanzine Beatlefan, said of “Magical Mystery Tour.” “By then, though, it had taken on mythic status. I loved it.”


At the time of its making, The Beatles were arguably at their creative peak on the heels of a seminal album, “Sgt. Pepper’s Lonely Hearts Club Band,” and their summer of love anthem “All You Need Is Love,” which debuted on global TV.


SCRIPT WANTED


But even before “Sgt. Pepper’s” release in June 1967, Paul McCartney had already conceived of the film project. The only thing he was missing: a script.


“Paul had drawn out a pie chart,” said Clyde, also a longtime consultant for The Beatles‘ company, Apple Corps. “It just said things like ‘Get on coach,’ ‘Dreams,’ ‘End Song.’ They really had no idea what it was going to be like.”


The group hired a bus, a film crew, and a handful of extras and set out around England, creating scenes with everything from magicians to Ringo Starr’s oversized Aunt Jessie being stuffed with spaghetti by waiter John Lennon.


McCartney did most of the directing.


“It really had something for everyone, which is something I like about it,” Clyde said. “It was really a nod not only to the younger people watching, but to their parents’ generation, as well.”


The film also was loaded with six new Beatles songs, presented as what now would be considered music videos.


The music itself, including songs “I Am the Walrus” and “The Fool on the Hill,” was as innovative as any of the band’s music that year – and mostly recorded just before filming started.


The Beatles were driven and inspired by having a deadline,” said Giles Martin, son of Beatles producer George Martin. The younger Martin remixed the songs at the legendary Abbey Road studios for the DVD and broadcast.


“And songs like ‘Walrus’ are a brilliant mix of both The Beatles as a rock and roll band and as masters of groundbreaking experimental recording,” Martin added.


(Editing by Eric Kelsey and Nick Zieminski)


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Bayer seeks FDA approval for cancer drug radium-223






FRANKFURT (Reuters) – German drugmaker Bayer said on Friday it requested approval from U.S. regulators for an experimental prostate cancer drug that could eventually generate more than 1 billion euros ($ 1.31 billion) in annual sales.


Radium-223 dichloride, which Bayer used to call Alpharadin, is designed to target bone metastases from prostate cancer that cannot be treated by standard hormone therapy.






Bayer licensed radium-223 from Algeta in 2009, and if approved in the United States, radium-223 will be co-promoted by Bayer and Algeta, the Oslo-based company said on Friday.


Bayer, which on Wednesday said it was requesting EU approval for the drug, will market radium-223 alone in Europe if the treatment is approved there.


Bayer said last year that Radium-223 dichloride could become a “blockbuster” product with annual sales of least 1 billion euros.


The drug has some properties of calcium, which makes it cling to cancerous bone cells and then destroy them via alpha rays, which is more targeted that the shotgun approach of conventional radiotherapy.


(Reporting by Jonathan Gould; Editing by Hans-Juergen Peters)


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Deeper eurozone union ‘agreed’







EU leaders have agreed on a roadmap for eurozone integration beyond the deal on centralised banking supervision, German Chancellor Angela Merkel said.






Specific dates have not yet been agreed for the phases of integration.


But the EU summit chairman, Herman Van Rompuy, said a deal should be reached next year on a joint resolution scheme for winding up failed banks.


Mr Van Rompuy’s far-reaching roadmap was the main topic of the two-day Brussels summit.


Speaking after the summit talks, French President Francois Hollande said: “There is no doubt today about the integrity of the eurozone – Europe cannot now be taken by surprise.”


But beyond the banking reforms, he said, Europe must address the problems of unemployment and feeble growth.


The deal to make the European Central Bank (ECB) the chief regulator should pave the way for direct recapitalisation of struggling eurozone banks by the main bailout fund, the 500bn-euro (£406bn; $ 654bn) European Stability Mechanism (ESM).


Spain is especially anxious to get that help for its debt-laden banks.


Direct recapitalisation would help break the “vicious circle” in which bank debts have put a crippling burden on national budgets and led to massive taxpayer-funded bailouts.


However, Germany insists that the ESM should not be used to write off the existing “legacy” debts that have burdened Spain, Greece and the Republic of Ireland. Any ESM loans will be accompanied by tough rules on budget discipline.


June deadline


Continue reading the main story

Eurozone integration – next steps


  • ECB takes charge of bank supervision no later than March 2014

  • Joint scheme to wind down broken banks, planned for launch in mid-2014

  • Joint deposit guarantee scheme, to prevent bank runs

  • Main bailout fund – ESM – gets power to recapitalise banks, under strict conditions

  • More centralised economic governance, including enforceable “contracts” between governments and EU Commission

  • Tighter co-ordination of national budget targets


At a late-night news conference, Mrs Merkel said “we agreed a roadmap for the future development of the currency union and talked about different aspects of this that are important.


“Above all, it was important to define when we do what.”


Mr Van Rompuy aims to present detailed plans for deeper economic integration in time for the June 2013 EU summit. They would include “mutually agreed contracts for competitiveness and growth between governments and EU institutions”.


Much closer EU scrutiny of national budgets is envisaged, including penalties if governments rack up unsustainable debts.


Contractual agreements on things such as taxation and labour market policy are likely to require changes to the EU treaties – so these are likely to be put off until after the European elections in mid-2014.


The UK, along with Denmark, has a formal opt-out from joining the euro, and will not be part of the new banking union. But the UK’s banking pre-eminence in Europe means it is taking an intense interest in the negotiations.


UK ‘at heart’ of EU


At a news conference after the summit, UK Prime Minister David Cameron said a “multi-faceted” Europe, with countries going at different speeds, did not leave the UK in an uncomfortable position.


Continue reading the main story

Eurozone banking deal


  • ECB to act as chief supervisor of eurozone banks and lenders

  • ECB to co-operate closely with national supervisory authorities

  • Direct oversight of banks with assets greater than 30bn euros ($ 39bn; £24bn) or with 20% of national GDP

  • National supervisors to remain in charge of other tasks

  • Non-eurozone countries that wish to take part can make close co-operation arrangements


He stressed that the UK had been “at the heart of decision making” on important issues like sanctions and EU enlargement, and “we wrote the rules of the single market and benefit from it today”.


He said the eurozone countries were committed to protecting the euro, but deeper integration involved big sovereignty issues. “I personally believe Britain won’t ever join, certainly not while I’m prime minister,” he said.


Referring to the EU’s crisis response, he said that “as this plays out it’s changing the European Union… so I believe there are opportunities for others, like Britain, to make changes themselves”.


‘Good example’


New rules on prudent banking are seen as vital to bolster the euro, as bank failures triggered the financial crash.


Under the deal expected to take effect in March 2014, banks with more than 30bn euros ($ 39bn; £24bn) in assets will be placed under ECB oversight.


The ECB would also be able to intervene with smaller lenders and borrowers at the first sign of trouble.


Speaking after the summit, Mr Hollande said Europe had been unprepared for the financial crisis but now had a “crisis management authority” which allowed for the “return of confidence and growth”.


The agreement on a financial transactions tax was, he told reporters, a good example of how countries could be brought into eurozone integration through closer co-operation, signing up to agreements at a later stage.


A non-eurozone country, Lithuania, joined the group adopting a financial transaction tax.


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Cuban lawmakers meet to consider economy, budget






HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.


Legislators are also to approve next year’s budget.






Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.


Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.


The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.


State-run media said Castro presided over Thursday’s session.


It was not open to international journalists.


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Angry Birds beats Samsung in viral marketing as mobile interest surged in 2012






This past year has shown us how effective leading smartphone and mobile app companies have become at leveraging viral videos. In Ad Age’s top-10 viral videos list for 2012, Samsung (005930) and Rovio each hog two spots. The Angry Birds Space video racked up 109 million views and the Angry Birds Star Wars hit the 41 million view mark. Meanwhile, Samsung managed to get 79 million views for its Galaxy S III video and 42 million views for the LeBron’s Day clip. It’s notable that Rovio’s Angry Birds clips were far cheaper to produce, with no major stars or lavish video production gimmickry.


The smartphone/mobile app industry thus held four of the top-10 viral video slots in 2012 — the rest of the list is a motley crew of names ranging from Invisible Children and Red Bull to Intel and M&M. It is telling that the smartphone/mobile app cluster is the only industry or cultural phenomenon that generated more than one spot on the list. Popular interest in mobile content continues surging.






It might also be a sign of the times that Apple (AAPL) did not hit the top-10. Samsung’s ultra-aggressive promotional efforts have started bearing fruit. What was once a boring, stale copycat brand in 2008 has suddenly started gripping the imaginations of consumers in a completely new way.


But perhaps even more interesting is that a mobile app company with less than 100 million euros in sales in 2011 managed to beat the mighty Samsung marketing machine in 2012. Rovio is in the vanguard of spreading mobile gaming into demographic niches that have never been all that interested in technology or gaming.


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‘Homeland’ leads old favorites in Golden Globes TV race






LOS ANGELES (Reuters) – Cable shows got more Golden Globe nominations for television than traditional network programs on Thursday as HBO‘s political movie “Game Change” and Showtime‘s psychological thriller series “Homeland,” – one of last year’s big winners – led the race.


“Homeland” led the TV drama category with four nominations including best drama, best actor for Damian Lewis and best actress for Claire Danes in her role as a bi-polar CIA agent tracking down a home-grown Muslim extremist.






The show faces stiff competition from British aristocratic drama “Downton Abbey, which also won an acting nod for Michelle Dockery, along with “Breaking Bad,” “Boardwalk Empire,” and newcomer “The Newsroom.”


“‘Homeland’ fans seemed to be a little more split on whether creatively the second season was as successful as the first season so it’ll be curious if that ends up impacting the show’s chances in terms of taking home the awards,” James Hibberd, senior staff writer at Entertainment Weekly, told Reuters.


Downtown Abbey” creator Julian Fellowes told Reuters: “We’re up against the big boys now, but the whole thing is very flattering and exciting.”


He added: “The themes of the show are pretty international, they’re about adjusting to change and being caught out by what life does to you…all of that is common to every country.”


HBO movie “Game Change,” about the surprise selection of Sarah Palin as John McCain’s running mate in the 2008 presidential campaign, landed five nods in the miniseries/movie category, including for actors Julianne Moore and Woody Harrelson.


“‘Game Change’ is pure awards bait. It’s a well-done, smart political drama based on a book, with a certain amount of left-wing political slant and it’s very much the type of movie you’d expect awards voters to like,” Hibberd said.


New HBO drama “The Newsroom” bumped long-time awards favorite “Mad Men” from the best drama category, surprising many who believed the stylish advertising series was a shoo-in.


“The Globes tend to like the glamorous and sophisticated dramas with big city settings and they tend to shy away from gritty, rural Americana dramas…about sweaty guys with guns instead of charming men in suits, like ‘The Newsroom’ and ‘Boardwalk Empire,’” Hibberd said.


He noted that the only exception was “Breaking Bad,” which finally made the best drama category this year after four seasons on air.


Other notable snubs included HBO‘s epic fantasy drama “Game of Thrones,” which failed to pick up any nominations, and Ryan Murphy’s miniseries “American Horror Story: Asylum” which landed one best actress nod for Jessica Lange, who took home the award for 2012.


‘MODERN FAMILY’ LEADS COMEDY RACE


While last year’s Golden Globes picked newcomers over staple awards favorites for leading nominees, this year’s comedy categories saw the return of many old faces, including “Modern Family,” which led the comedy race with three nods.


Comedians Tina Fey and Amy Poehler, who will be hosting the awards ceremony on January 13, each landed a best comedy actress nod in the television race for their long-popular NBC comedies – Fey for “30 Rock” and Poehler for “Parks and Recreation.”


“You can be sure that the hosts are going to have fun with this during the telecast, they’re going to find ways to play off this during their presentation,” Hibberd said.


Fey and Poehler will replace Ricky Gervais at the awards gala dinner, after the British comedian helmed the Globes with his risqué dry humor for three years.


HBO‘s raunchy new comedy “Girls” earned two key nominations in the best TV comedy category and best comedy actress for Lena Dunham, while Showtime‘s new satire “House of Lies” landed the show’s lead Don Cheadle a best actor nod.


With the exception of NBC’s musical comedy “Smash” in the best comedy series category, no new network comedies managed to break into key races, which Hibberd attributed to a “disappointing” fall season.


Cable channel HBO picked up 17 nominations and Showtime garnered 7 across all major television categories. Networks ABC had 5, CBS and NBC got 4, and Fox got 2.


(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)


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Obama, Boehner hold “frank” meeting amid ‘fiscal cliff’ frustration






WASHINGTON (Reuters) – President Barack Obama and House of Representatives Speaker John Boehner held a “frank” face-to-face meeting on Thursday in an effort to break an impasse in talks to avert the “fiscal cliff” of steep tax increases and spending cuts.


With an end-of-year deadline looming, the two leaders talked at the White House as frustration mounted over the recent lack of progress in negotiations that had become bogged down in a daily round of finger-pointing.






Aides on both sides used similar language to describe the 50-minute meeting, calling it “frank” and repeating that lines of communication remained open.


The meeting, also attended by Treasury Secretary Timothy Geithner, was announced after frustration broke out on both sides at a lack of progress and U.S. stocks turned negative due to fears the economy could dip into recession again if politicians fail to break the gridlock in Washington.


At times raising his voice, Boehner criticized Obama earlier in the day for putting jobs and the economic recovery at risk by insisting on raising tax rates for the wealthiest 2 percent.


White House spokesman Jay Carney responded by reaffirming Obama’s commitment to raising the top rates and complaining there had been no movement from Republicans on that crucial topic.


“What we have not seen from the Republicans is any movement at all on the fundamental issue,” Carney told reporters. “Republicans need to accept the fact that rates will go up on the top 2 percent.”


In an interview with a Minnesota CBS television affiliate, Obama said he was hopeful of getting a deal and willing to make more spending cuts as long as revenue from higher tax rates for the rich was part of the deal.


“I’m willing to do a lot more cuts in spending. We also need to pair it up with a little more revenue,” he told WCCO television.


At a meeting earlier on Thursday, Obama’s top economic adviser, Gene Sperling, delivered a downbeat message to Democratic senators about the status of the fiscal cliff talks.


A Democratic aide described the presentation as “bleak,” saying Sperling told the group of senators that “we don’t have anywhere to go until Republicans move on (income tax) rates.”


RECESSION FEARS


Economists say failure to reach an agreement before January 1 could push the country back into recession. The main hurdle is the expiring tax cuts, which Obama wants extended for all but the rich and Boehner wants extended for everyone.


But with positions seeming to harden, both sides also emphasized their differences on Obama’s request for permanent authority to increase U.S. borrowing as part of a fiscal-cliff agreement and on Republican calls for an increase in the eligibility age for recipients of the Medicare healthcare program.


At a news conference, Boehner occasionally raised his voice in criticism of Obama’s bottom-line insistence on raising tax rates on the rich.


“Raising tax rates will hurt small businesses at a time when we’re expecting small businesses to be the engine of job creation in America,” said Boehner, who used a chart to illustrate his point that curbing spending increases was the key to deficit reduction.


If Obama persisted on a path of higher spending and higher taxes, he said, “this chart is going to look a lot worse.”


Afterward, his spokesman said Boehner would return to his home state of Ohio on Friday for the weekend, but was available if there were more talks. “Ohio has both cell phone service and airports,” spokesman Michael Steel said. “It won’t be a problem.”


A seven-day rally in world shares came to a halt and commodity prices slipped on Thursday after negotiations over the fiscal cliff appeared to stall.


Today there’s a certain sense that both sides are still apart,” said Gordon Charlop, managing director at Rosenblatt Securities in New York, describing trading as “tweaking” while investors watch Washington’s back-and-forth drama.


While Republicans fumed, Obama planned to continue his public-relations offensive with a round of interviews with anchors from local television stations. He was interviewed by ABC’s Barbara Walters two days ago.


A flurry of new polls showed strong support for Obama’s position. According to a Wall Street Journal/NBC survey, three-quarters of Americans said they would accept raising taxes on the wealthy to avoid the cliff. Even among Republicans, some 61 percent said they would accept tax increases on high earners.


‘REALITY SHOULD SET IN’


A Pew Research Center poll showed Obama’s approval rating rising and 55 percent saying he was making a serious effort to engage in the fiscal talks, while just 32 percent said Republicans were serious about a deal.


Senate Democratic leader Harry Reid, citing the polls, said Boehner “can’t ignore the people forever” on the tax issue. “At some point, reality should set in,” he told reporters.


The polls have put Republicans in a difficult negotiating position, and pressure has grown on Boehner in recent weeks from the right and left. Some Republicans have expressed a willingness to give in on higher tax rates in exchange for deeper spending cuts, while conservatives have demanded that Boehner stand firm.


“I’m not concerned about my job as speaker,” Boehner, who faces re-election to the leadership post in January, told reporters.


Boehner also dismissed any notion that Republicans would agree to giving Obama more authority on the debt ceiling.


“Congress is never going to give up our ability to control the purse,” Boehner said. “The debt limit ought to be used to bring fiscal sanity to Washington.”


A group of 72 House Democrats urged Obama to reject Republican calls to raise the Medicare eligibility age.


Senator Dick Durbin of Illinois, the second-ranking Democrat in the Senate, told reporters he was told by the White House that raising the eligibility age for qualifying for Medicare benefits was not in the mix anymore.


“My understanding is that is no longer one of the items being considered by the White House,” Durbin told reporters.


He said that raising the eligibility age “creates some serious issues for a lot of people who may be caught in the gap between retirement and eligibility. Where are they going to get health insurance? Many of them are sick people.”


(Additional reporting by Kim Dixon and Rachelle Younglai; Writing by John Whitesides; Editing by Alistair Bell and Peter Cooney)


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Eurozone bank deal boosts summit







EU leaders have gone into a Brussels summit buoyed by a landmark deal on centralised supervision of eurozone banks, seen as a key integration step.






The European Commission said the leaders must “keep the same sense of urgency” despite an easing of market pressure on the eurozone recently.


The UK government says the new agreement does not threaten the City of London, the EU’s main financial centre.


The leaders will discuss a far-reaching roadmap for eurozone integration.


UK Prime Minister David Cameron said the deal reached by EU finance ministers after all-night talks “protected our interests in the single market”. He praised UK Chancellor George Osborne for “an excellent job”.


The UK, along with Denmark, has a formal opt-out from joining the euro, and will not be part of the new banking union. But the UK’s banking pre-eminence in Europe means it is taking an intense interest in the negotiations.


Mr Cameron said “this change does give us a chance to get a better deal in Europe”.


Continue reading the main story

Start Quote



This deal is a further example of how the eurozone crisis is carving out a new Europe less from choice but more by the need to survive”



End Quote



Sweden is also outside the euro, and its prime minister, Fredrik Reinfeldt, said the deal would still enable non-eurozone countries to have influence in European banking decisions.


“To start with Sweden will stay outside… Swedish taxpayers don’t want to cover losses in other countries,” he told reporters on arrival at the summit.


Around 200 of the biggest banks will come under the direct oversight of the European Central Bank, which will act as chief supervisor of eurozone banks.


New rules on prudent banking are seen as vital to bolster the euro, as bank failures triggered the financial crash.


The measures are also aimed at preventing banking failures, of the type that happened in Greece and Spain, ending up on the books of eurozone governments.


Eurozone finance ministers also agreed formally to release a long-delayed instalment of 34bn euros (£27bn; $ 44bn) to Greece over the next few days, with a further 15bn later on. Athens has been waiting for the bailout funding since June.


Heavily indebted Italy has also been a worry for investors, and political uncertainty has increased since former Prime Minister Silvio Berlusconi confirmed that he would run again in a general election expected in February.


At a pre-summit meeting in Brussels conservative leaders voiced support for Italy’s Prime Minister Mario Monti, some urging him to run for election against Mr Berlusconi, sources who were there said.


Mr Monti, an unelected technocrat, has pushed through some unpopular but long-delayed reforms, including big public service cuts, since taking over from Mr Berlusconi a year ago with the EU’s approval.


‘Core demands’


EU finance ministers finally clinched the banking deal just before dawn on Thursday after 14 hours of talks.


Continue reading the main story

Eurozone banking deal


  • ECB to act as chief supervisor of eurozone banks and lenders

  • ECB to co-operate closely with national supervisory authorities

  • Direct oversight of banks with assets greater than 30bn euros ($ 39bn; £24bn) or with 20% of national GDP

  • National supervisors to remain in charge of other tasks

  • Non-eurozone countries that wish to take part can make close co-operation arrangements


German Chancellor Angela Merkel welcomed the agreement, telling the Bundestag (lower house of parliament) that Germany’s “core demands” had been secured. “It cannot be praised too highly.”


She has previously warned against rushing into banking union out of concern that Germany would face further financial demands.


Significantly, a large number of French banks will be supervised by the ECB but rather few institutions in Germany will, because of its fragmented banking industry, says the BBC’s Business Editor, Robert Peston.


European Commission President Jose Manuel Barroso hailed the deal as “a crucial and very substantive step towards completion of the banking union”.


‘Significant transfer’


For months, the threshold at which the ECB would act as chief supervisor has been the subject of strained negotiations.


Under the deal expected to take effect in March 2014, banks with more than 30bn euros ($ 39bn; £24bn) in assets will be placed under the oversight of the European Central Bank.


The ECB would also be able to intervene with smaller lenders and borrowers at the first sign of trouble, the BBC’s Europe Editor Gavin Hewitt says.


Europe’s finance ministers have taken another major step towards closer integration, with a significant transfer of authority from national governments to the ECB, he says.


The deal gives the ECB powers to close down eurozone banks that do not follow the rules. It also paves the way for the EU’s main rescue fund to come to the direct aid of struggling banks.


It represents the first stage of a banking union – known as a Single Supervisory Mechanism (SSM) – which EU leaders believe can be put in place without having to change EU treaties.


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The Hobbit: Richard Armitage Talks Preparations For Playing Thorin Oakenshield






British actor Richard Armitage admitted it wasn’t a walk in the park to play a J.R.R. Tolkien character in Peter Jackson’s reimagining of “The Hobbit,” the first installment of which is on its way into theaters.


Upon touching down in New Zealand, where the trilogy was shot, the cast had a lot of character preparation to do.






PLAY IT NOW: Martin Freeman Discusses The Hobbit’s ‘Good Chemistry’ & Playing Bilbo Baggins


“We arrived in February 2011 and we went straight into a training program, which was called ‘Dwarf Bootcamp,’ which was literally boots — these huge boots. We learned how to walk, we wrestled with each other, we did archery together, we did sword fighting, hammer fighting, horse riding — everything you could possibly think of,” Richard, who plays Thorin Oakenshield in the film told Access Hollywood at the film’s junket.


In addition, the cast, which includes his former “Cold Feet” co-star James Nesbitt as Bofur, found ways to get to know each other better off set.


VIEW THE PHOTOS: The Hobbit: An Unexpected Journey — New York City Premiere


“We went round to each other’s houses and we cooked food together, we went to the pub and got drunk together, so there was an incredibly great bonding time between the dwarves,” he said.


Richard had plenty of experience sword fighting and horse riding in the BBC America series “Robin Hood,” but it was something else that came in handy during the long days on set.


“I’d done a number of shows where I’d had to use sword fighting and I’d also done horse riding. I’d also pulled guns out of my pocket. That was less useful,” he laughed, likely referring to his recent role in the PBS-import series “MI-5,” where he played a British spy. “But, yeah, you draw on everything. I’d worked at the Royal Shakespeare Company, so the vocal work was really useful to kind of pull that from there. I’d worked in a circus, there were… all sorts of things that were really useful, but the one thing that I do have — for lack of talent — is stamina and that’s the one thing I think everybody needed on this job.”


VIEW THE PHOTOS: Meet ‘The Hobbit’ Cast!


An imagination was useful also, but Richard said what turned out on the big screen was still wilder – and more beautiful – than he dreamed of.


“So many moments… Actually, apart from the eagles — which every single time I’ve seen this film absolutely blows my mind and I can barely keep the tears back and [it has] nothing to do with the pathos of the scene, just that feeling of flight moves me — is the throne of Aragorn, in the beginning of the prologue,” he told Access of the moment that moved him most. “When it got to [filming] that scene, I walked on and… it was just a green cross on the floor with a tiny green chair… [But in the film], they just made this incredible, almost space aged, sort of suspended seat in the middle of this stalagmite. It just blows my mind when I see that.”


VIEW THE PHOTOS: The Brit Pack: Hot Shots Of Stars From The UK!


“The Hobbit: An Unexpected Journey” hits theaters on December 14, 2012, followed by “The Hobbit: The Desolation of Smaug,” on December 13, 2013 and “The Hobbit: There and Back Again,” on July 18, 2014.


– Jolie Lash


Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Australia / Antarctica News Headlines – Yahoo! News


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‘Dishonored’ tops a diverse year in video games






The video game universe in 2012 is a study in extremes.


At one end, you have the old guard striving to produce mass-appeal blockbusters. At the other end, you have a thriving community of independent game developers scrambling to find an audience for their idiosyncratic visions. Can’t we all just get along?






Turns out, we can. For while some industry leaders are worried (and not without cause) about “disruptive” trends — social-media games, free-to-play models, the switch from disc-based media to digital delivery — video games are blossoming creatively. This fall, during the height of the pre-holiday game release calendar, I found myself bouncing among games as diverse as the bombastic “Halo 4,” the artsy “The Unfinished Swan” and the quick-hit trivia game “SongPop.”


Some of my favorite games this year have benefited from both sides working together. The smaller studios get exposure on huge platforms like Xbox Live or the PlayStation Network. The big publishers seem more willing to invite a little quirkiness into their big-budget behemoths. Gamers win.


1. “Dishonored” (Bethesda Softworks, for the Xbox 360, PlayStation 3, PC): Arkane Studios’ revenge drama combined a witty plot, crisp gameplay and an uncommonly distinctive milieu, setting a supernaturally gifted assassin loose in a gloriously decadent, steampunk-influenced city.


2. “Mass Effect 3″ (Electronic Arts, for the Xbox 360, PlayStation 3, Wii U, PC): No 2012 game was more ambitious than BioWare’s sweeping space opera. Yes, the ending was a little bumpy, but the fearless Commander Shepard’s last journey across the cosmos provided dozens of thrilling moments.


3. “The Walking Dead” (Telltale Games, for the Xbox 360, PlayStation 3, PC, iOS): This moving adaptation of Robert Kirkman’s comics dodged the predictable zombie bloodbath in favor of a finely tuned character study of two survivors: Lee, an escaped convict, and Clementine, the 8-year-old girl he’s committed to protect.


4. “Journey” (Thatgamecompany, for the PlayStation 3): A nameless figure trudges across a desert toward a glowing light. Simple enough, but gorgeous visuals, haunting music and the need to communicate, wordlessly, with companions you meet along the way translate into something that’s almost profound.


5. “Borderlands 2″ (2K Games, for the Xbox 360, PlayStation 3, PC): Gearbox Software’s gleeful mash-up of first-person shooting, role-playing and loot-collecting conventions gets bigger and badder, but what stuck with me most were the often hilarious encounters with the damaged citizens of the godforsaken planet Pandora.


6. “XCOM: Enemy Unknown” (2K Games, for the Xbox 360, PlayStation 3, PC): A strategy classic returns, as the forces of Earth fight back against an extraterrestrial invasion. It’s a battle of wits rather than reflexes, a stimulating change of pace from the typical alien gorefest.


7. “Fez” (Polytron, for the Xbox 360): A two-dimensional dude named Gomez finds his world has suddenly burst into a third dimension in this gem from indie developer Phil Fish. As Gomez explores, the world of “Fez” continually deepens, opening up mysteries that only the most dedicated players will be able to solve.


8. “Spec Ops: The Line” (2K Games, for the Xbox 360, PlayStation 3, PC): This harrowing tale from German studio Yager Development transplants “Apocalypse Now” to a war-torn Dubai. It’s a bracing critique, not just of war but of the rah-rah jingoism of contemporary military shooters.


9. “Assassin’s Creed III” (Ubisoft, for the Xbox 360, PlayStation 3, Wii U, PC): A centuries-old conspiracy takes root in Colonial America in this beautifully realized, refreshingly irreverent installment of Ubisoft’s alternate history franchise.


10. “ZombiU” (Ubisoft, for the Wii U): The best launch game for Nintendo’s new console turns the Wii U’s GamePad into an effective tool for finding and hunting down the undead.


Runners-up: “Call of Duty: Black Ops II,” ”Darksiders II,” ”Dust: An Elysian Tail,” ”Far Cry 3,” ”Halo 4,” ”Mark of the Ninja,” ”Need for Speed: Most Wanted,” ”Paper Mario: Sticker Star,” ”Papo & Yo,” ”The Unfinished Swan.”


Gaming News Headlines – Yahoo! News


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C-section babies more likely to become overweight






NEW YORK (Reuters Health) – Children born via cesarean section are slightly more likely than babies delivered vaginally to become heavy or obese, according to a new review of studies.


The results don’t prove that c-sections cause kids to put on weight, but Dr. Jianmeng Liu, one of the authors of the study and a professor at Peking University Health Science Center in China, said the link between the delivery and obesity is important to keep in mind.






“The potential health burden of obesity and other diseases associated with c-section births should not be neglected, even if its impact is modest, particularly given” how often births happen that way, Liu told Reuters Health in an email.


Previous research has tied c-sections to a variety of untoward health outcomes in children, including asthma, allergies and diabetes (see Reuters Health reports of February 5, 2009 here: http://reut.rs/js7tcW and September 18, 2008 here: http://reut.rs/m5Kpji).


Liu said that the relationship between the type of delivery and obesity among kids hasn’t been as clear (see Reuters Health reports of January 30, 2012 here: http://reut.rs/xxjBgo and May 12, 2011 here: http://reut.rs/mv2kS5).


The research team collected the results from nine studies that included more than 200,000 people.


People were 33 percent more likely to be overweight or obese if they were born by c-section, researchers report in the International Journal of Obesity.


Nearly 70 percent of adults in the U.S. are overweight or obese. A 33 percent increase from that number would mean that 93 percent would be heavy.


The risk for childhood obesity in particular was somewhat higher – about a 40 percent increase over kids born vaginally.


Nearly one in five kids aged six to 11 is obese in the U.S., according to the Centers for Disease Control and Prevention.


Liu said the increase in risk was modest, but that it persists into adulthood. When the researchers looked just at the studies on adults, they found that those who were born surgically were 50 percent more likely to be obese than those who were born vaginally.


WHY THE LINK?


It’s not clear why c-section births are tied to a better chance of being heavy.


One possibility relates to the bacteria babies are exposed to when they are delivered vaginally, which might affect the way they process and store food, said Liu.


Additionally, Liu added, researchers have suggested that c-sections are linked with a lower concentration in the umbilical cord of a hormone important in regulating weight and with a reduced rate of breastfeeding, “both of which are reported to be associated with an increased risk of later obesity.”


Babies who are larger than normal are also more likely to be born via cesarean, but most of the studies Liu’s team analyzed took into account birth weight.


Cesareans have become increasingly popular, and in the U.S. now one in four babies is born through a c-section.


Liu said there’s been concern that some of these are unnecessary, and given the potential negative impacts on children the unneeded ones should be curbed.


“In clinical practice, (the) potential adverse impact of c-section should be considered by medical staff, and non-medically indicated elective c-section should be somewhat avoided, where possible,” Liu said.


SOURCE: http://bit.ly/XcjOMh International Journal of Obesity, online December 4, 2012.


Parenting/Kids News Headlines – Yahoo! News


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Rebekah Brooks gets £10.8m payoff







Rebekah Brooks, the former head of News International, was paid £10.8m after she resigned, it has emerged.






The figure, compensation for loss of office, appeared in the company’s accounts, released on Wednesday.


Mrs Brooks resigned in July 2011 shortly after the News of the World closed because of phone hacking allegations.


The accounts for the year to July 2012 also show the group set aside £17.5m to cover legal fees and damages.


That figure relates to existing claims only, and could rise in the future if it receives more, News International said.


Individuals who have received payments from the company include the parents of the murdered schoolgirl Millie Dowler and the singer Charlotte Church.


Mrs Brooks, who has been charged over alleged payments to police and public officials, was a former editor of the News of the World and the Sun newspaper, and later rose to chief executive of News International.


She appeared at the Old Bailey last week and is due to face trial in September next year over alleged illegal payments to public officials.


Losses


The company said this financial year contained a “high level of uncertainty” due to potential damages and legal costs which may be payable as result of the legal action by those alleging their private messages were intercepted by the News of the World in search of stories.


News International Group is a subsidiary of Rupert Murdoch’s News Corporation and owns both the Times titles as well as the Sun newspaper.


Its accounts show it lost £153m in the year to July 2012 compared with a profit of £113m a year earlier.


The group said one of the main causes of the loss, £46.6m, was the closure of the News of the World, which published its last edition in July last year.


More than half of this is legal fees, it said. In addition to that there is the £10.8m loss of office payment and £2.9m in charitable donations from the sale of the last News of the World.


The Times


Separately, the editor of the Times, James Harding, has announced his resignation.


He will leave within a month and is expected to be replaced by Sunday Times editor John Witherow. .


In an address to staff, Mr Harding implied that the decision was not entirely his: “It has been made clear to me that News Corporation would like to appoint a new editor of the Times.


“I have, therefore, agreed to stand down. I called Rupert this morning to offer my resignation and he accepted it,” he said.


Mr Harding could move to Mr Murdoch’s publishing firm, Harper Collins, BBC business editor Robert Peston says.


Rupert Murdoch said: “James has been a distinguished editor for the Times, attracting talented staff to the paper and leading it through difficult times.


“I have great respect for him as a colleague and friend, and truly hope we can work together again.”


Mr Harding, who is 43, was one of the youngest journalists to take charge of the paper.


Split


The change at the Times newspaper comes hard on the heels of another move at the top of Mr Murdoch’s company.


Last week, the chief executive of News International, Tom Mockridge, who had taken over from Mrs Brooks in July 2011, said he would leave his role before the end of the month.


Rupert Murdoch, chairman and chief executive of News Corp, said that Mr Mockridge’s decision was “absolutely and entirely his own”.


News Corp plans to split into two businesses, separating its newspaper and book publishing interests from its now dominant and much more profitable TV and film enterprises.


BBC News – Business


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Corruption probe shrouds Quebec in new darkness






MONTREAL (Reuters) – Half a century ago, a new crop of Quebec leaders sparked the so-called Quiet Revolution to eradicate the “Great Darkness” – decades of corruption that kept Canada‘s French-speaking province under the dominance of one party and the Catholic church.


The revolution’s reforms, including cleaning up the way lawmakers were elected and secularizing the education system, seemed to work, paving the way for decades of growth, progress and prominence as Canada emerged as a model of democracy.






Fifty years later, a public inquiry into corruption and government bid-rigging suggests the province’s politics are not as clean as Quebecers had hoped or believed.


Since May, when the inquiry opened in Montreal, Canadians have been getting daily doses of revelations of fraud through live broadcasts on French-language television stations. Corruption involving the Mafia, construction bosses and politicians, the inquiry has shown, drove up the average building cost of municipal contracts by more than 30 percent in Montreal, Canada’s second-largest city.


Last month, Montreal Mayor Gerald Tremblay resigned as did the mayor of nearby Laval, Gilles Vaillancourt. Both denied doing anything wrong, but said they could not govern amid the accusations of corruption involving rigging of municipal contracts, kickbacks from the contracts and illegal financing of elections.


Tremblay has not been charged by police. Vaillancourt’s homes and offices have been raided several times by Quebec’s anti-corruption squad, which operates independently of the inquiry, but no charges have been filed against him either. Police said the raids were part of an investigation but they would not release further details.


“Quebecers lived for several years under the impression that they had found the right formula, that their parties were clean,” said Pierre Martin, political science professor at the University of Montreal. Now, he said, “people at all levels are fed up.”


The inquiry must submit its final report to the Quebec government by next October. It has exposed practices worthy of a Hollywood noir thriller – a mob boss stuffing his socks with money, rigged construction contracts, call girls offered as gifts, and a party fundraiser with so much cash he could not close the door of his safe.


“Even though we are in the early days, what is emerging is a pretty troubling portrait of the way public contracts were awarded,” said Antonia Maioni, director of the McGill Institute for the Study of Canada in Montreal.


Quebec’s Liberals, the force behind the Quiet Revolution, launched the inquiry as rumors of corruption swirled. The government then called an election for September, a year ahead of schedule, in what was seen as an attempt to stop damaging testimony hurting its popularity.


The tactic did not help. Jean Charest’s Liberals lost to the Parti Quebecois, whose ultimate aim is to take the French-speaking province, the size of Western Europe, out of Canada.


‘IT WASN’T COMPLICATED’


According to allegations at the inquiry, the corruption helped three main entities: the construction bosses who colluded to bid on contracts, the Montreal Mafia dons who swooped in for their share, and the municipal politicians who received kickbacks to finance campaigns.


In Quebec, the Mafia has been dominated by the Rizzuto family, with tentacles to the rest of Canada and crime families in New York and abroad. But recently the syndicate has been facing challenges from other crime groups in Montreal, according to the Toronto-based Mafia analyst and author Antonio Nicaso.


The reputed godfather of the syndicate, Vito Rizzuto, has been subpoenaed to appear before the commission, but the date for his testimony has not been set.


The hearings have zeroed in on four construction bosses and how their companies worked with the Mafia, bribed municipal engineers and provided funds for mayoralty campaigns in Montreal, the business capital for Quebec’s 8 million people.


“It’s not good for the economy,” said Martin. “It’s not good for any kind of legitimate business that tries to enter into any kind of long-term relationship with the public sector.”


Quebec’s anti-corruption squad has arrested 35 people so far this year, staging well-publicized raids on mayoral offices and on construction and engineering companies. The squad has arrested civil servants and owners of construction companies, among others.


“I now must suffer an unbearable injustice,” Tremblay said in a somber resignation speech earlier this month after a decade as mayor of Montreal, saying he could not continue in office because the allegations of corruption were causing a paralysis at City Hall.


Some of the most explosive allegations at the inquiry, headed by Quebec Superior Court Justice France Charbonneau, came from Lino Zambito, owner of a now bankrupt construction company, and from a top worker for Tremblay’s political party, Union Montreal.


Zambito, who is seen as one of the smaller players and who also faces fraud charges, described a system of collusion between organized crime, business cartels and corrupt civil servants, with payments made according to a predetermined formula.


“The entrepreneurs made money, and there was an amount that was due to the Mafia,” Zambito told the inquiry. “It wasn’t complicated.”


Zambito said the Mafia got 2.5 percent of the value of a contract, 3 percent went to Union Montreal and 1 percent to the engineer tasked with inflating contract prices.


Tremblay did not respond to emails requesting comment on the allegations of corruption at city hall.


A former party organizer, Martin Dumont, alleged the mayor was aware of double bookkeeping used to hide illegal funding during a 2004 election.


Dumont said the mayor walked out of the room during a meeting that explained the double bookkeeping system, saying he did not want to know anything about it.


Dumont also described how he was called into the office of a fundraiser for Union Montreal to help close the door of a safe because it was too full of money.


“I think it was the largest amount I’d ever seen in my life,” Dumont said at the inquiry.


GOLF, HOCKEY, ESCORTS


The inquiry also saw videos linking construction company players with Mafia bosses. In one police surveillance video, a Mafia boss was seen stuffing cash into his socks.


A retired city of Montreal engineer, Gilles Surprenant, described how he first accepted a bribe in the late 1980s after being “intimidated” by a construction company owner. Over the years he said he accepted over $ 700,000 from the owners in return for inflating the price of the contracts.


Another retired engineer, Luc Leclerc, admitted to bagging half a million dollars for the same service. He said the system was well-known to many at city hall and simply part of the “business culture” in Montreal. He also got gifts and paid golf trips to the Caribbean with other businessmen and Mafia bosses.


Gilles Vezina, who is currently suspended from his job as a city engineer, concurred.


“It was part of our business relationships to get advantages like golf, hockey, Christmas gifts” from construction bosses, he told the inquiry in mid-November.


The gifts didn’t stop there. Vezina said he was twice offered the services of prostitutes from different construction bosses in the 1980s or early 1990s, which he said he refused.


The accusations are jarring for a country that prides itself on being one of the least corrupt places in the world, according to corruption watchdog Transparency International. But experts say corruption in Montreal was something of an open secret.


“The alarm signals have been going off here for 20 years and no one has done anything,” said Andre Cedilot, a former journalist who co-wrote a book on the Canadian Mafia.


Quebec’s new government has introduced legislation tasking the province’s securities regulator with vetting businesses vying for public contracts and allowing it to block companies that do not measure up.


Anti-corruption activist Jonathan Brun was not optimistic.


“You’ve got to use modern technology,” said Brun, a co-founder of Quebec Ouvert, a group that wants to make all information about contracts freely available rather than asking regulators to oversee individual companies. “You’ve got to change the entire system if you really want to fight corruption.”


(Writing by Russ Blinch; Editing by Janet Guttsman, Mary Milliken and Prudence Crowther)


Canada News Headlines – Yahoo! News


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Obama, Boehner talk and exchange new offers on “fiscal cliff”






WASHINGTON (Reuters) – Negotiations to avert the “fiscal cliff” ahead of a year-end deadline intensified as President Barack Obama and U.S. House of Representatives Speaker John Boehner spoke by phone on Tuesday after exchanging new proposals.


It was latest sign of possible progress in efforts to avoid the automatic steep tax hikes and spending cuts set for January 1 unless Congress intervenes.






White House and congressional aides confirmed that Obama gave Boehner a revised offer in talks on Monday, and the Republican responded with a counterproposal on Tuesday.


In his proposal, Obama slightly reduced his demand for the amount of new tax revenue he was seeking to $ 1.4 trillion from $ 1.6 trillion over 10 years, congressional aides said. Boehner was no happier with that number, an aide said.


After getting the new offer, Boehner took to the House floor on Tuesday to demand that Obama give more details on the spending cuts the White House would accept in any final deal.


“We’re still waiting for the White House to identify what spending cuts the president is willing to make as part of the balanced approach that he promised the American people,” Boehner said.


The White House fired back that the administration had submitted extensive proposals to reduce spending but Republicans had not offered specifics on increasing revenues.


“There is a deal out there that’s possible,” White House spokesman Jay Carney told reporters. It could include reduced spending, more revenues and tax reform as long as Republicans accepted higher tax rates on the wealthiest Americans, he said.


“We do believe the parameters of a compromise are pretty clear,” Carney said.


In an interview with ABC News, Obama said he expected a deal before the end of the year.


“I’m pretty confident that Republicans would not hold middle-class taxes hostage to trying to protect tax cuts for high-income individuals,” Obama said in the interview. “I don’t think they’ll do that.”


Obama and Boehner have each proposed cutting deficits by more than $ 4 trillion over the next 10 years, but they differ on how to get there. Economists have warned that failure to strike a deal could send the economy back into a recession.


Obama and Democrats demand that tax rates rise for the wealthiest 2 percent of Americans. Republicans want existing lower rates continued for all brackets and prefer to raise more revenue by eliminating tax loopholes and reducing deductions.


Republicans also want deeper spending cuts than those sought by Obama and fellow Democrats, particularly on social entitlement programs like the government-funded Medicare and Medicaid healthcare plans.


“I’m an optimist. I’m hopeful we can reach an agreement,” Boehner said during his speech on the House floor.


But Senate Democratic leader Harry Reid said it would be difficult to reach an agreement before Christmas.


“Until we hear something from Republicans, there’s nothing to draft,” Reid told reporters, referring to writing legislation based on a deal. “It’s going to be extremely difficult to get it done before Christmas.”


Boehner spokesman Michael Steel said the counteroffer from Boehner would achieve tax and entitlement reforms that would solve the looming debt crisis, but he offered no more details.


Stocks rose on Tuesday, with the S&P 500 reaching its highest close since Election Day. Markets endured a sharp selloff after the November 6 re-election of Obama, as investors focused on the fiscal cliff concerns.


“I guess in our own dysfunctional way, there is progress,” said Frank Davis, director of sales and trading at LEK Securities in New York. “Since conversations are occurring, it clarifies at least they are taking some action. My personal gut is they’ll jostle this into the holiday week and try to do a last-minute push.”


FRAMEWORK FOR A DEAL


While senior figures from both parties caution they are far from a deal, a softening of partisan rhetoric in recent days and the increased frequency of talks has created speculation that negotiations are going well.


If there is a fiscal cliff deal, congressional leaders will have to decide the most efficient way to move the legislation forward. Aides said those decisions had not been made as negotiators are still focused on the elements of a possible deal.


The most frequently discussed scenario involves Democrats getting the higher rates on the top earners in exchange for significant concessions on reducing costs in entitlement programs. The two parties could then work together next year on comprehensive tax reform aimed at creating more revenues, in part by eliminating some tax breaks.


Adding pressure on Republicans to give some ground on taxes, a group of high-profile chief executives called for a deal that could include raising tax rates on the wealthiest Americans.


The group had previously backed extending tax cuts for all Americans as a stopgap solution.


“We recognize that part of that solution has to be tax increases,” said David Cote, the chief executive of Honeywell who has been active in Washington on fiscal issues. About 160 CEOs signed the letter under the umbrella of the Business Roundtable, a non-partisan group of U.S. chief executives.


Complicating the talks is the looming need for an increase in U.S. borrowing authority that Obama wants before Congress wraps up for the year. Without the authority, the government will hit its $ 16.4 trillion borrowing limit by year’s end and run out of steps to stave off default by mid-February.


Obama has asked for the power to raise U.S. borrowing authority without legislation from Congress in hopes of avoiding another confrontation with Republicans like the 2011 showdown that led to an embarrassing downgrade of the U.S. credit rating.


Also in the mix is a payroll tax “holiday” set to expire, which, if not extended, will quickly reduce the take-home pay of a large segment of the U.S. workforce.


The holiday, now in its second year, has been providing workers with an average of about $ 1,000 a year in extra cash. Significant divisions remain on the payroll tax question in part because it funds the Social Security retirement program.


(Additional reporting by Rachelle Younglai, Kim Dixon, Steve Holland and Matt Spetalnick; Writing by John Whitesides; Editing by Alistair Bell and Eric Beech)


Seniors/Aging News Headlines – Yahoo! News


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HSBC to pay $1.9 billion U.S. fine in money-laundering case






(Reuters) – HSBC Holdings Plc agreed to pay a record $ 1.92 billion in fines to U.S. authorities for allowing itself to be used to launder a river of drug money flowing out of Mexico and other banking lapses.


Mexico‘s Sinaloa cartel and Colombia’s Norte del Valle cartel between them laundered $ 881 million through HSBC and a Mexican unit, the U.S. Justice Department said on Tuesday.






In a deferred prosecution agreement with the Justice Department, the bank acknowledged it failed to maintain an effective program against money laundering and failed to conduct basic due diligence on some of its account holders.


Under the agreement, which was reported by Reuters last week, the bank agreed to take steps to fix the problems, forfeit $ 1.256 billion, and retain a compliance monitor. The bank also agreed to pay $ 665 million in civil penalties to regulators including to the Office of the Comptroller of the Currency, the Federal Reserve, and the Treasury Department.


“We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again. The HSBC of today is a fundamentally different organization from the one that made those mistakes,” HSBC Chief Executive Stuart Gulliver said.


THE PLACE TO LAUNDER MONEY


HSBC‘s money-laundering lapses in Mexico and elsewhere were cited in an extensive Senate report earlier this year, but the documents filed in court on Tuesday provided new details.


Despite the known risks of doing business in Mexico, the bank put the country in its lowest risk category, which excluded $ 670 billion in transactions from the monitoring systems, according to the documents.


Bank officials repeatedly ignored internal warnings that HSBC‘s monitoring systems were inadequate, the Justice Department said. In 2008, for example, the CEO of HSBC Mexico was told that Mexican law enforcement had a recording of a Mexican drug lord saying that HSBC Mexico was the place to launder money.


Mexican traffickers used boxes specifically designed to the dimensions of an HSBC Mexico teller’s window to deposit cash on a daily basis.


The agreement also described a vastly understaffed compliance department. At times, only one to four employees were responsible for reviewing alerts identifying suspicious wire transactions. When HSBC processed bulk cash, a business it calls Banknotes, only one or two compliance officials oversaw transactions for 500 to 600 customers, the Justice Department said.


Compliance was “woefully inadequate,” Loretta Lynch, the U.S. Attorney in Brooklyn, said at a press conference.


SANCTIONS VIOLATIONS


In documents filed in federal court in Brooklyn, the Justice Department also charged the bank with violating sanctions laws by doing business with customers in Iran, Libya, Sudan, Burma and Cuba.


HSBC separately reached a settlement with British watchdog the Financial Services Authority.


“The HSBC settlement sends a powerful wakeup call to multinational banks about the consequences of disregarding their anti-money laundering obligations,” said Senator Carl Levin, who led the Senate inquiry.


U.S. and European banks have now agreed to settlements with U.S. regulators totaling some $ 5 billion in recent years on charges they violated U.S. sanctions and failed to police potentially illicit transactions.


No bank or bank executives have been indicted. Instead, prosecutors have used deferred prosecutions, under which criminal charges against a firm are set aside if it agrees to conditions such as paying fines and changing its behavior.


“In trying to reach a result that’s fair and just and powerful, you also have to look at the collateral consequences,” DOJ criminal chief Lanny Breuer said at the Brooklyn press conference.


The settlement is the third time in a decade that HSBC has been penalized for lax controls and ordered by U.S. authorities to improve its monitoring of suspicious transactions. Previous directives by regulators to improve oversight came in 2003 and in 2010.


Last month, HSBC told investors it had set aside $ 1.5 billion to cover fines or penalties stemming from the inquiry and warned that costs could be significantly higher.


Analyst Jim Antos of Mizuho Securities said that while the fine was huge in cash terms, the settlement costs were “trivial” in terms of the company’s book value.


HSBC shares closed up 0.56 percent at 644.8 pence in London.


ANTI-MONEY LAUNDERING CONTROLS


HSBC said it had increased spending on anti-money laundering systems by around nine times between 2009 and 2011, exited business relationships and clawed back bonuses for senior executives. As evidence of its determination to change, it cited the hiring last January of Stuart Levey, a former top U.S. Treasury Department official, as chief legal officer.


Under a five-year agreement with the Justice Department, HSBC agreed to have an independent monitor evaluate its progress in improving its compliance.


It also said that as part of the overhaul of its controls, it has launched a global review of its “Know Your Customer” files, which will cost an estimated $ 700 million over five years. The files are designed to ensure that banks do not unwittingly act as conduits for criminal funds.


HSBC‘s settlement comes a day after rival British bank Standard Chartered Plc agreed to a $ 327 million settlement with U.S. law enforcement agencies for sanctions violations, a pact that follows a $ 340 million settlement the bank reached with the New York bank regulator in August.


Such settlements have become commonplace. In what had been the largest settlement until this week, ING Bank NV in June agreed to pay $ 619 million to settle U.S. government allegations that it violated sanctions against countries including Cuba and Iran.


In the United States, J.P. Morgan Chase & Co, Wachovia Corp and Citigroup Inc have been cited for anti-money laundering lapses or sanctions violations.


HSBC‘s failings date to 2003, when the Federal Reserve Bank of New York and New York state regulators ordered it to better monitor suspicious money flows. In 2010, a consent order from the Comptroller of the Currency (OCC) ordered HSBC to review suspicious transactions. At the time, the OCC called HSBC‘s compliance program “ineffective.”


In 2008, the federal prosecutor in Wheeling, West Virginia, began investigating allegations that a local doctor used the bank to launder money from Medicare fraud.


Ultimately, the prosecutor’s office came to believe the case was “the tip of the iceberg” in terms of suspicious transactions conducted through HSBC, according to documents reviewed by Reuters and reported earlier this year.


(Additional reporting by Lawrence White and Michael Flaherty in Hong Kong, Steve Slater in London, Jessica Dye in Brooklyn; Editing by Peter Graff, John Wallace and Alden Bentley)


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Egypt army given temporary power to arrest civilians






CAIRO (Reuters) – Egypt’s Islamist president has given the army temporary power to arrest civilians during a constitutional referendum he is determined to push through despite the risk of bloodshed between his supporters and opponents accusing him of a power grab.


Seven people were killed and hundreds wounded last week in clashes between the Islamist Muslim Brotherhood and their critics besieging Mohamed Mursi’s graffiti-daubed presidential palace. Both sides plan mass rallies on Tuesday.






The elite Republican Guard has yet to use force to keep protesters away from the palace, which it ringed with tanks, barbed wire and concrete barricades after last week’s violence.


Mursi, bruised by calls for his downfall, has rescinded a November 22 decree giving him wide powers but is going ahead with a referendum on Saturday on a constitution seen by his supporters as a triumph for democracy and by many liberals as a betrayal.


A decree issued by Mursi late on Sunday gives the armed forces the power to arrest civilians and refer them to prosecutors until the announcement of the results of the referendum, which the protesters want cancelled.


Despite its limited nature, the edict will revive memories of Hosni Mubarak’s emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.


But a military source stressed that the measure introduced by a civilian government would have a short shelf-life.


“The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only,” the military source said.


Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army’s assistance.


“The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over,” Ali said.


Protests and violence have racked Egypt since Mursi decreed himself extraordinary powers he said were needed to speed up a troubled transition since Mubarak’s fall 22 months ago.


The Muslim Brotherhood has voiced anger at the Interior Ministry’s failure to prevent protesters setting fire to its headquarters in Cairo and 28 of its offices elsewhere.


Critics say the draft law puts Egypt in a religious straitjacket. Whatever the outcome of the referendum, the crisis has polarized the country and presages more instability at a time when Mursi is trying to steady a fragile economy.


On Monday, he suspended planned tax increases only hours after the measures had been formally decreed, casting doubts on the government’s ability to push through tough economic reforms that form part of a proposed $ 4.8 billion IMF loan agreement.


“VIOLENT CONFRONTATION”


Rejecting the referendum plan, opposition groups have called for mass protests on Tuesday, saying Mursi’s eagerness to push the constitution through could lead to “violent confrontation”.


Islamists have urged their followers to turn out “in millions” the same day in a show of support for the president and for a referendum they feel sure of winning with their loyal base and perhaps with the votes of Egyptians weary of turmoil.


The opposition National Salvation Front, led by liberals such as Mohamed ElBaradei and Amr Moussa, as well as leftist firebrand Hamdeen Sabahy, has yet to call directly for a boycott of the referendum or to urge their supporters to vote “no”.


Instead it is contesting the legitimacy of the vote and of the whole process by which the constitution was drafted in an Islamist-led assembly from which their representatives withdrew.


The opposition says the document fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.


But debate over the details has largely given way to noisy street protests and megaphone politics, keeping Egypt off balance and ill-equipped to deal with a looming economic crisis.


“Inevitability of referendum deepens divisions,” was the headline in Al-Gomhuriya newspaper on Monday. Al Ahram daily wrote: “Political forces split over referendum and new decree.”


Mursi issued another decree on Saturday to supersede his November 22 measure putting his own decisions beyond legal challenge until a new constitution and parliament are in place.


While he gave up extra powers as a sop to his opponents, the decisions already taken under them, such as the dismissal of a prosecutor-general appointed by Mubarak, remain intact.


“UNWELCOME” CHOICE


Lamia Kamel, a spokeswoman for former Arab League chief Moussa, said the opposition factions were still discussing whether to boycott the referendum or call for a “no” vote.


“Both paths are unwelcome because they really don’t want the referendum at all,” she said, but predicted a clearer opposition line if the plebiscite went ahead as planned.


A spokeswoman for ElBaradei, former head of the U.N. nuclear watchdog, said: “We do not acknowledge the referendum. The aim is to change the decision and postpone it.”


Mahmoud Ghozlan, the Muslim Brotherhood’s spokesman, said the opposition could stage protests, but should keep the peace.


“They are free to boycott, participate or say no, they can do what they want. The important thing is that it remains in a peaceful context to preserve the country’s safety and security.”


The army stepped into the conflict on Saturday, telling all sides to resolve their disputes via dialogue and warning that it would not allow Egypt to enter a “dark tunnel”.


A military source said the declaration read on state media did not herald a move by the army to retake control of Egypt, which it relinquished in June after managing the transition from Mubarak’s 30 years of military-backed one-man rule.


The draft constitution sets up a national defense council, in which generals will form a majority, and gives civilians some scrutiny over the army – although not enough for critics.


In August Mursi stripped the generals of sweeping powers they had grabbed when he was elected two months earlier, but has since repeatedly paid tribute to the military in public.


So far the army and police have taken a relatively passive role in the protests roiling the most populous Arab nation.


(Additional reporting by Edmund Blair and Yasmine Saleh; editing by Philippa Fletcher)


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Andy Serkis plays dual role in ‘Hobbit’ – Gollum and director






LOS ANGELES (Reuters) – Andy Serkis reprises his role as Gollum in “The Hobbit: An Unexpected Journey,” to be released worldwide this week, but his main role this time was as a second unit director, shooting battle sequences in 3D for director Peter Jackson.


The British-born actor, 48, who rose to fame as the obsessive Gollum in Jackson’s “The Lord of the Rings” trilogy, spoke with Reuters about playing the popular CGI character, and his role behind the camera in New Zealand for “The Hobbit.”






Q: Was it nice to get re-acquainted with Gollum after almost 10 years?


A: “Yes, but he’s never been that far away from me. Not a day goes by where I’m not reminded of Gollum by some person in the street who asks me to do his voice or wants to talk to me about him. But because ‘The Hobbit’ has been talked about as a project for many years, I knew that at some point I’d have to reengage with him.”


Q: Martin Freeman (Bilbo Baggins) is new to the franchise and so are many other actors. As a veteran, did they come to you for advice?


A: “It sort of manifested itself more in a way where (as a vet) you understand the scale and scope of what’s required stamina-wise. It’s a different rhythm than most movies. For a lot of the actors, you’re 12,000 miles away from home. It becomes a way of life – getting up at five in the morning, shooting every day, day in day out, for 270 days. The new cast playing the dwarves were carrying incredibly heavy weights in their suits, they sat through hours of make-up every day. So it’s quite challenging from a stamina point of view.”


Q: Playing Gollum was not your only job. You were also doing second unit directing. What did that entail?


A: “Directing was my main job this time – more than playing Gollum. I worked 200 days with a huge team shooting battle sequences, aerials. It was an amazing experience and one which I was very, very thankful to Peter for asking me to do.”


Q: How did that come about?


A: “I’d already started directing short films when we were doing ‘Lord of the Rings,’ then videogame projects. So Peter’s known that I’ve been heading towards directing for a long time. But I always thought my first outing would be a couple of people and a digital camera in the back streets of London somewhere!”


Q: Why do you think Peter let you do it?


A: “I think because the second unit was going to have a lot of principal cast, Peter wanted someone that could take care of the performances and create an atmosphere where the actors felt safe. Obviously I was briefed closely by Peter. But it was a huge challenge – mental, technological. I’d never shot with 3D. Plus the day to day logistics of dealing with such an enormous operation.”


Q: Any plans to direct again?


A: “Just before I headed off to New Zealand to work on ‘The Hobbit,’ I was in the process of setting up (my new company) The Imaginarium (with producer Jonathan Cavendish), which is a performance-capture studio and a development company. We are developing our own slate of film projects, one of which is George Orwell’s ‘Animal Farm.’ It’s going to be the first film that I’ll be directing.”


Q: Where does acting fit in to your newfound career?


A: “At the moment, my trajectory isn’t to think about acting. I’m absolutely devoted to The Imaginarium, our projects and directing. And watching and enabling other actors do their thing in our studio is hugely rewarding. I expect at some point I’ll probably want to go back on stage and do some theater, because I’ve not done theater in 10 years.”


Q: With two more installments of “The Hobbit” still to come over the next few years, you’ll be the voice of Gollum for fans for many more years. Are your kids proud or embarrassed when you’re asked do his distinctive raspy voice?


A: “I’m probably running out of credits in terms of my kids enjoying me do the Gollum voice for others. Especially my older ones (Ruby, 14, Sonny, 12). It was cool when they were younger. But my youngest (Louie, 8) absolutely revels in it. He would have me do it all day long for his friends at school. So I still have great currency there!”


(Reporting By Zorianna Kit; Editing by Jill Serjeant and Nick Zieminski)


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Who’s living past 100 in the U.S.? Mostly white women






WASHINGTON (Reuters) – Women have long been known to live longer than men, but when it comes to hitting the century mark the difference is stark: just 2 out of 10 Americans who live to 100 or longer are male.


Of the 53,364 Americans age 100 and older, more than 80 percent are women, a U.S. Census Bureau report released on Monday showed.






The agency’s findings, based on data collected from its 2010 census, also found those who make it past 100 are also more likely to be white city-dwellers in the Northeast and Midwest.


“Due to sex differences in mortality over the lifespan, the proportion of females in the population increases with age. This is especially true in the oldest ages, where the percentage female increases sharply,” Census researchers wrote.


“For every 100 centenarian females, there were only 20.7 centenarian males,” they added.


While reaching 100 years of age may not attract as much fanfare as it did a few decades ago, the public still marvels at those who reach “super centenarian,” status.


Guiness World Records, which certifies the oldest living person, said the title was held by Besse Cooper, an American woman who died last week at age 116 in a Georgia nursing home soon after having her hair done.


Guiness announced on its website that the new person to certified to be the oldest anywhere on the globe is 115-year-old Dina Manfredini, an immigrant from Pievepelago, Italy, who has lived in Des Moines, Iowa, since 1920. She is just 15 days older than Japan’s Jiroemon Kimura, Guiness World Records said.


Although still rare, the number of people living past 100 can have an impact as policymakers consider and plan services and programs that affect older adults, Census said in its report.


The findings are not necessarily all rosy for women.


Living longer can mean greater medical and retirement expenses, among other issues.


And the number of those living past 100 continues to grow. Just 32,194 Americans reached 100 or older in 1980, far below the current level, according to the Census Bureau.


Still, centenarians in the United States remain relatively rare compared to those in other developed countries.


There were 1.73 centenarians per 10,000 people in the United States in 2010 compared to 1.92 per 10,000 people in Sweden, 2.70 per 10,000 in France and 3.43 per 10,000 people in Japan, Census said.


(Reporting By Susan Heavey; Editing by Cynthia Osterman)


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