Egypt Sends Prime Minister to Gaza in Show of Solidarity

Ilia Yefimovich/Getty Images

Smoke rose over Gaza on Friday. Israel denied launching airstrikes. More Photos »

JERUSALEM — After a night of ferocious airstrikes in Gaza and rocket fire toward Israel, Egypt on Friday launched a remarkable diplomatic initiative, sending its prime minister to show support for Palestinians in the beleaguered enclave, a move that prompted his Israeli counterpart to agree to a temporary cease-fire even as Israeli commanders sent armored vehicles toward the overcrowded coastal strip and called up reservists for a possible invasion.

But the frail truce did not seem to be holding, or even taking root. While news reports said the Egyptian official had arrived in Gaza, Israel Radio said Palestinian militants fired 25 rockets into southern Israel, with one rocket striking a house. There were no immediate reports of casualties. The thump of what sounded like airstrikes was also audible in Gaza City, residents said, but the Israeli military no such strikes had taken place.

Prime Minister Benjamin Netanyahu had made the temporary cease-fire by Israel’s airplanes conditional on a corresponding halt to rocket fire from Gaza.

Residents in Gaza said the night was filled with the boom and crash of airstrikes, with loud explosions at dawn on Friday, a day after Israel and the Hamas rulers of Gaza brushed aside international calls for restraint and escalated their lethal conflict. In Gaza, Palestinian militants launched hundreds of rockets into Israeli territory, targeting Tel Aviv for the first time, and Israel intensified its aerial assaults.

Defense Minister Ehud Barak of Israel, expressing outrage over a pair of long-range Palestinian rockets that whizzed toward Tel Aviv and set off the first air-raid warning in the Israeli metropolis since it was threatened by Iraqi Scuds in the Persian Gulf war of 1991, said, “There will be a price for that escalation that the other side will have to pay.”

Within hours of the Tel Aviv air-raid warning, the Israeli Defense Forces said they had attacked 70 underground rocket-launching sites in Gaza and “direct hits were confirmed.” There were also unconfirmed reports that Israeli rockets had struck near Gaza’s Rafah crossing into Egypt, forcing the Egyptians to close it.

Early on Friday, the Israeli military said it had called up 16,000 army reservists, as preparations continued for a possible ground invasion for the second time in four years. Mr. Barak had authorized the call-up of 30,000 reservists, if needed, to move against what it considers an unacceptable security threat from smuggled rockets amassed by Hamas, the militant Islamist group that governs Gaza and does not recognize Israel’s right to exist.

It was not clear whether the show of Israeli force on the ground in fact portended an invasion or was meant as more of an intimidation tactic to further pressure Hamas leaders, who had all been forced into hiding on Wednesday after the Israelis killed the group’s military chief, Ahmed al-Jabari, in a pinpoint aerial bombing. But Mr. Netanyahu said he was ready to “take whatever action is necessary.”

At the same time, though, Israel signaled its concern to preserve its so-called cold peace with Egypt, with Mr. Netanyahu agreeing to the temporary cease-fire during the visit of Prime Minister Hesham Kandil of Egypt, who planned to visit the Al Shifa hospital and meet the Hamas cabinet. For the first time since Wednesday, Ismail Haniya, the Hamas prime minister, was seen in public on Friday accompanying Mr. Kandil, Israel Radio reported.

The visit of the Egyptian delegation is expected to last about three hours, and an official in Mr. Netanyahu’s office said by telephone that Israel had told Egypt that the cease-fire would hold as long as “there would not be hostile fire from the Gaza Strip into Israel.”

“Prime Minister Netanyahu is committed to the peace treaty with Egypt,” the official said. “That peace serves the strategic interests of both countries.” There was no suggestion that the Israelis were considering a more permanent cease-fire at this stage.

Overnight, Israel said it launched 150 airstrikes while Palestinian fired a dozen rockets into Israel — far fewer than the hundreds that have hurtled toward Israel in the past two days.

President Mohamed Morsi of Egypt ordered Mr. Kandil to Gaza both as an initiative to ease the crisis and in a display of solidarity that would have been improbable in the era of President Hosni Mubarak before his overthrow last year.

Isabel Kershner reported from Jerusalem, Rick Gladstone from New York, and Alan Cowell from Paris. Reporting was contributed by Fares Akram and Jodi Rudoren from Gaza, Rina Castelnuovo from Kiryat Malachi, Mayy El Sheikh and David D. Kirkpatrick from Cairo, Gabby Sobelman from Jerusalem, and Elisabeth Bumiller from Bangkok.

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Analysis: New Microsoft mantra after Sinofsky – teamwork

SEATTLE/SAN FRANCISCO (Reuters) – The sudden departure of powerful Windows boss Steven Sinofsky this week is the first step in a plan by CEO Steve Ballmer to remodel Microsoft Corp as a much more integrated operation in an attempt to take on Apple Inc and Google Inc at their own game.

After nearly 13 years at the helm of the world’s largest software maker, which just launched its first own-brand computer, sources inside the company say Sinofsky‘s departure signals Ballmer‘s new-found focus on co-operation between its self-sufficient – and sometimes warring – units.

“What I’m hearing over and over is collaboration and horizontal integration is the new mantra,” said one Microsoft insider, who asked not to be named. “They (top management) understand that, if they don’t move to a model where devices and software are more integrated across the entire Microsoft system, they are in a weak position.”

After floundering for most of the last decade, Microsoft is trying emulate the way Apple‘s software and hardware – such as iTunes and the iPhone – work perfectly together; or how Google‘s online suite from Web search to YouTube and Gmail are seamlessly joined.

Microsoft – which Ballmer rechristened as a “devices and services company” last month – has all the parts, analysts say, but has failed to put them together. Now Ballmer looks set to reshape the company to try to make that a reality.

“I certainly expect the org chart to look a lot different six months from now,” said Brad Silverberg, who ran the Windows unit during its massive growth spurt in the 1990s. “There will be attrition from Steven’s (Sinofsky’s) people and Steve Ballmer will have a chance to create a more harmonious organization.”

Ballmer replaced Sinofsky with two executives with a reputation for co-operation. The move marks the third time in the last few years that Ballmer has replaced a single unit head with two leaders sharing responsibilities.

“Sinofsky really centralized all the power under himself. We’ll see how it shakes out from here,” said one manager in the Windows unit.

More fundamental organizational shifts could be in the cards.

“A lot of things are up for grabs,” said David Smith at tech research firm Gartner. “How the management is structured – there could be more changes.”

NO ROOM FOR AN EMPIRE BUILDER

Sinofsky, a 23-year Microsoft veteran, built up a walled empire around his Windows unit.

His hard-charging but methodical style, which took on the name “Sinofskyization,” alienated other groups in the company, especially the Office unit, the other financial pillar of Microsoft‘s success.

“Steven is a brilliant guy who made tremendous contributions to Microsoft,” said Silverberg. “But he was also a polarizing guy and the antibodies ultimately caught up with him.”

The decision not to share the latest internal test versions of Windows 8 and keep the Surface tablet a secret until just before its announcement especially upset the Office group, which insiders say accounts for the lack of a fully featured Office suite on the Surface RT tablet.

“All good leaders create friction, but my guess is the cost of doing business with Sinofsky ended up outweighing the benefits,” said a former Microsoft staffer who saw Sinofsky operate at close quarters.

“If you work in Steven’s team, you love him,” said a former colleague who now works for a financial technology firm in Seattle. “If he’s outside of your team? That’s where his reputation of being hard to work with came from.”

Ballmer has made it clear that executives have to work together better. Next year, top managers will get bonuses based on company-wide performance, not just their own unit, which Ballmer hopes will lead to “deeper cross-organization collaboration.”

But there is no guarantee Ballmer can radically redirect almost four decades of culture at Microsoft – which he is partly responsible for – that gave Windows primacy and intentionally pitted teams against one another to get the best results.

Nothing will change without new leaders from outside the company, said Trip Chowdhry, managing director at Global Equities Research.

“Microsoft is clinging to the past and they keep bringing in the people from the past. This is a fundamental flaw in the logic,” Chowdhry said.

CEO THRONE

Despite urging collaboration, Ballmer – a 32-year Microsoft veteran who took over as CEO from Bill Gates in 2000 – does not let any junior executive get too close to challenging his authority.

Sinofsky, widely touted as Ballmer’s successor for the past three years, was just the latest in a line of would-be CEOs. Over the last five years alone, Ballmer has seen off a clutch of rising stars that were discussed as potential leaders.

Windows and online head Kevin Johnson went to run Juniper Networks Inc, Office chief Stephen Elop went to lead phone maker Nokia, while Ray Ozzie – the software guru Bill Gates designated as Microsoft‘s big-picture thinker – left to start his own project.

“They’ve gone through quite a bit of senior management talent in the past few years. The bench is not what it used to be,” said Smith at Gartner. “The overall management structure, career path, replacements, succession planning – a lot of that is an issue for Microsoft.”

Ballmer’s promotion of Julie Larson-Green and Tami Reller to jointly fill Sinofsky’s role may only be temporary, Microsoft-watchers say.

“The question is what comes after, like in the next three years,” said Rob Helm at Directions on Microsoft, an independent firm that advises business customers on how to deal with Microsoft.

(Reporting By Bill Rigby in Seattle and Alexei Oreskovic in San Francisco.; Editing by Edward Tobin, Martin Howell and Andre Grenon)

Tech News Headlines – Yahoo! News

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The X Factor Reveals Its Top 12

TV Watch

The X Factor

11/15/2012 at 11:00 PM EST

Demi Lovato and Simon Cowell

Double elimination time on The X Factor!

The top 12 performed songs by divas the night before – and then faced a night of diva-worthy drama on Thursday's show. And it was a particularly tough night for the young adults' coach, Demi Lovato, after the outcome of the viewers' votes were revealed.

Keep reading for all the results ...

Early in the hour, hosts Mario Lopez and Khloé Kardashian announced the act with the lowest number of votes was Simon Cowell's hip-hop group Lyric 145, who performed a mash-up of Queen's "We Will Rock You" and Katy Perry's "E.T." on Wednesday.

"We didn't get the opportunity to show what we really had," frontwoman Lyric Da Queen said. "We hard original lyrics ... But we're just taking the good with the bad right now."

Nine acts were then declared safe, leaving two to sing for survival – and they were both from Demi's team: Jennel Garcia and Paige Thomas.

Jennel performed an emotional rendition of Hoobastank's "The Reason," and Paige sang Coldplay's "Paradise."

Then the judges had to vote for the act they wanted to send home.

"I'm shocked that either of them are at the bottom," L.A. Reid said. He voted to send home Jennel. Britney followed his lead. Simon refused to say his choice and forced Demi to go first. "The act that I'm going to send home is Paige," she said. It was up to Simon to avoid a tie – and he picked Jennel.

So, Demi was the only one to reject Paige and she'll have to work with her again next week. Awkward!

"You're so unbelievably talented and you have a future ahead of you so I'm not worried," Demi told Jennel. "I love you and I really, really believe in you."

And then the co-hosts announced the ranking of the top 10 based on who got the most votes:

10. Paige Thomas
9. Arin Ray
8. Beatrice Miller
7. Diamond White
6. Fifth Harmony
5. CeCe Frey
4. Emblem3
3. Vino Alan
2. Carly Rose Sonenclar
1. Tate Stevens

The show's only country singer does it again!

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Diabetes rates rocket in Oklahoma, South

NEW YORK (AP) — The nation's diabetes problem is getting worse, and the biggest jump over 15 years was in Oklahoma, according to a new federal report issued Thursday.

The diabetes rate in Oklahoma more than tripled, and Kentucky, Georgia and Alabama also saw dramatic increases since 1995, the study showed.

The South's growing weight problem is the main explanation, said Linda Geiss, lead author of the report by the Centers for Disease Control and Prevention study.

"The rise in diabetes has really gone hand in hand with the rise in obesity," she said.

Bolstering the numbers is the fact that more people with diabetes are living longer because better treatments are available.

The disease exploded in the United States in the last 50 years, with the vast majority from obesity-related Type 2 diabetes. In 1958, fewer than 1 in 100 Americans had been diagnosed with diabetes. In 2010, it was about 1 in 14.

Most of the increase has happened since 1990.

Diabetes is a disease in which the body has trouble processing sugar; it's the nation's seventh leading cause of death. Complications include poor circulation, heart and kidney problems and nerve damage.

The new study is the CDC's first in more than a decade to look at how the nationwide boom has played out in different states.

It's based on telephone surveys of at least 1,000 adults in each state in 1995 and 2010. Participants were asked if a doctor had ever told them they have diabetes.

Not surprisingly, Mississippi — the state with the largest proportion of residents who are obese — has the highest diabetes rate. Nearly 12 percent of Mississippians say they have diabetes, compared to the national average of 7 percent.

But the most dramatic increases in diabetes occurred largely elsewhere in the South and in the Southwest, where rates tripled or more than doubled. Oklahoma's rate rose to about 10 percent, Kentucky went to more than 9 percent, Georgia to 10 percent and Alabama surpassed 11 percent.

An official with Oklahoma State Department of Health said the solution is healthier eating, more exercise and no smoking.

"And that's it in a nutshell," said Rita Reeves, diabetes prevention coordinator.

Several Northern states saw rates more than double, too, including Washington, Idaho, Montana, Wyoming, South Dakota, Minnesota, Missouri, Ohio and Maine.

The study was published in CDC's Morbidity and Mortality Weekly Report.

___

Associated Press writer Ken Miller in Oklahoma City contributed to this report.

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Online:

CDC report: http://tinyurl.com/cdcdiabetesreport

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Banks seen shrinking for good as lay-offs near 160,000

LONDON (Reuters) - Major banks have announced some 160,000 job cuts since early last year and with more lay-offs to come as the industry restructures, many will leave the shrinking sector for good as redundancies outpace new hires by roughly two-to-one.

A Reuters analysis of job cuts announced by 29 major banks showed the lay-offs were much bigger in Europe than in Asia or the United States. That is a particular blow to Britain where the finance industry makes up roughly 10 percent of the economy.

The tally of nearly 160,000 job cut plans, meanwhile, is likely to be a conservative estimate as smaller banks and brokers are also cutting staff or shutting up shop, and bigger banks have not always disclosed target numbers of lay-offs.

The tally also does not include reports of 6,000 job cuts to come at Commerzbank, for example, which the German group would not confirm last week.

Well-paid investment bankers are bearing the brunt of cost cuts as deals dry up and trading income falls. That is particularly the case in some activities such as stock trading, where low volumes and thin margins are squeezing banks.

"When I let go tons of people in cash equities this year, I knew most would be finished in this business. It is pretty dead. Some will just have to find something completely different to do," said one top executive at an international bank in London, on condition of anonymity.

The job cuts eat into tax revenues usually reaped from the sector at a time when the global economic recovery is slowing.

This year's tax income from the industry in Britain could drop to around 40 billion pounds ($63 billion) this year, compared to 70 billion in 2007/08, when the financial crisis hit, the Centre for Economics and Business Research (CEBR) think-tank said this week.

The job cuts announced since the beginning of 2011 come on top of job cuts already carried since 2009.

Of the 29 banks, from Europe's biggest bank HSBC to U.S. investment bank Morgan Stanley, just over 83,700 net jobs have been lost since 2009, with 167,200 jobs axed and 83,500 created.

Squeezed by regulations forcing banks to store up more capital in their trading businesses, firms are likely to shrink their investment banking units even further, as they overhaul their models to survive.

"It is structural as well as in response to cycles in the market. The market is still over-broked," said Zaheer Ebrahim at recruiters Kennedy Group.

Swiss bank UBS last month outlined a further 10,000 lay-offs after announcing a plan for 3,500 job cuts last year. It said in October it had decided to exit most of its rates and debt trading units.

Workers in retail banking operation will not be immune to job cuts either, particularly in slowing European economies. In France for instance, bank executives predict retail revenues will falter.

"There are still 300,000 too many full-time employees in the top financial services players in Europe," said Caio Gilberti from the financial services practice of consultancy AlixPartners. Gilberti said cutting those jobs could lop just over 20 billion euros off banks' collective cost base.

LEAVING FOR GOOD

As banks shrink, fewer of those leaving are able to find equivalent jobs at rivals, head-hunters and bankers said, and only a small proportion of those are qualified to move into other jobs at hedge funds, for instance, which look for specialized, skilled traders.

Mergers and acquisition dealmakers are now also coming under pressure, with fees in that area down 21 percent worldwide to $13.9 billion in the first nine months, Thomson Reuters data showed.

More senior investment bankers are among those in the line of fire. Those ranking as managing directors (MDs), who can command base salaries of around 350,000 pounds ($556,000), are becoming costly to keep - and difficult to take on.

"At MD level, it is tougher to accept smaller jobs, and they do not have the same drive and ambition as the young bankers who have just graduated," Ebrahim from the Kennedy Group said.

Many of those that have enjoyed lucrative careers in the fatter years are instead leaving big banks for good, setting up their own small consultancies or different types of businesses.

(Editing by Jon Hemming)

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RIM to offer free voice calls over Wi-Fi with BBM

TORONTO (AP) — BlackBerry users will soon be able to make free voice calls over a Wi-Fi network using the popular BBM messaging service.

Research In Motion Ltd. announced Wednesday that it’s adding the feature to BBM. Users will be able to switch back and forth from a text chat to a voice call. A split-screen option will let them talk and text at the same time.

The new feature is a free update for existing customers and comes months before RIM introduces its new BlackBerry 10 smartphones, which are seen critical to RIM’s survival.

RIM made a surprise disclosure in its most recent earnings report in announcing that the number of subscribers grew, thanks in part to emerging markets and its popular BBM service. It’s struggling in North America as customers migrate to flashier iPhones and Android phone.

RIM stopped short of offering the BBM voice feature over wireless carriers’ own cellular networks. Doing so would have potentially created more congestion on cellular data networks and deprive carriers of revenue for voice calls. With the new feature, the free calls are limited to times and places where Wi-Fi is available.

The Canadian company said the BBM voice feature is especially attractive for developing markets. Unlike regular texts, BBM messages are not charged on a per-text basis.

Although RIM is struggling in North America, the BlackBerry continues to sell well in such markets as South Africa, Nigeria and Indonesia.

The BBM service has long been a reason for BlackBerry users to not defect to other smartphones but there are rival messaging services.

RIM said the BBM voice update is currently available for BlackBerry smartphones running the BlackBerry 6 operating system or higher, with plans for BlackBerry 5 later. RIM’s latest phones run the 7 operating system. The next version, BlackBerry 10, will come soon after a Jan. 30 launch event.

Gadgets News Headlines – Yahoo! News

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Hope Solo Weds Jerramy Stevens Amid Assault Allegations?

By Dahvi Shira

11/14/2012 at 06:35 PM EST

Jerramy Stevens and Hope Solo

NFL/Getty; Jeff Vinnick/Getty

One day after former Seattle Seahawks tight end Jerramy Stevens was arrested on suspicion of assaulting his fiancée, U.S. women's soccer team goalkeeper Hope Solo, the pair reportedly tied the knot.

"Confirmed," Sportsradio 950 AM and 102.9 FM radio host Dave Mahler Tweeted on Tuesday. "Jerramy Stevens and Hope Solo were married tonight. Events of yesterday morning didn't change plans."

The pair, who had only been dating for about two months, applied for a marriage license last Thursday. According to court documents, the athletes were arguing over whether to wed in Florida or Washington State.

Stevens, 33, was reportedly released from custody by a Kirkland, Wash., Municipal Court judge on Tuesday after determining there wasn't enough evidence to hold the former football star.

All of the former Dancing with the Stars contestant's social media pages have gone silent since Nov. 6., and calls to her rep have not been returned.

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Booze calories nearly equal soda's for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

"We've been focusing on sugar-sweetened beverages. This is something new," said Cynthia Ogden, one of the study's authors. She's an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

The study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are "a key driver of the obesity epidemic," alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York's focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

"In New York City, it was smart to start with sugary drinks. Let's see how it goes and then think about next steps," she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn't. "It could give people the wrong idea," she said.

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Online:

CDC report: http://www.cdc.gov/nchs/

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Stock index futures signal higher Wall Street open

LONDON (Reuters) - U.S. stock index futures pointed to a slightly higher open on Wall Street on Thursday on bargain hunting, following losses in the previous session on concerns about the "fiscal cliff".

* Futures for the S&P 500, the Dow Jones and the Nasdaq 100 were up 0.1 to 0.3 percent, a day after U.S. stocks <.dji><.spx><.ixic> fell 1.3 to 1.5 percent.

* Australia's GrainCorp knocked back a $2.8 billion takeover offer from Archer Daniel Midland Co on Thursday, saying the bid undervalued the grains handler after a bumper harvest delivered a record annual net profit.

* Labor Department releases at 0830 EDT first-time claims for jobless benefits for the week ended November 10. Economists forecast a total of 375,000 new filings, compared with 355,000 in the prior week.

* Major companies announcing results on Thursday include Wal-Mart Stores , Dell and Applied Materials .

* New York Federal Reserve releases its Empire State Manufacturing Survey for November at 1330 GMT. Economists expect a reading of -6.70, compared with -6.16 in October.

* Honeywell International Inc and Rockwell Collins Inc are expected to win major contracts to supply systems to Boeing Co for its updated 737 Max jetliner, the Wall Street Journal reported, citing two people familiar with the decisions.

* The Labor Department releases the October Consumer Price Index at 1330 GMT. Economists expect a 0.1 percent rise, compared with a 0.6 percent gain in September.

* Labor leaders at the South Korean unit of General Motors are ratcheting up pressure on GM to reverse course and build its next-generation Chevrolet Cruze model in the country, over fears GM's plans to build it elsewhere will cost Korean jobs.

* Philadelphia Federal Reserve Bank releases November business activity survey at 1500 GMT. Economists forecast a reading of 2.0, versus 5.7 in October.

* U.S. federal regulators temporarily banned JPMorgan Chase & Co's energy trading arm from a segment of the domestic power market, the first time such a penalty has been imposed for making factual misrepresentations during an investigation into market manipulation.

* Diamond Foods shares were down 8.5 percent after the bell on Wednesday following the release of its results.

* China's ruling Communist Party unveiled an older, conservative new leadership line-up on Thursday that appears unlikely to take the drastic action needed to tackle pressing issues like social unrest, environmental degradation and corruption.

* European equities <.fteu3> fell 0.4 percent on Thursday as the rising threat to global growth from the U.S. and Europe prompted investors to reduce their exposure to risky assets.

* U.S. stocks slid on Wednesday with declines accelerating after President Barack Obama set up a drawn-out fight over the fiscal cliff when he stuck to his pledge to raise taxes on the wealthy, and as violence increased in the Middle East.

* Congress has about seven weeks to craft a solution to deal with the year-end expiration of Bush-era tax cuts and the launch of automatic spending cuts. If left unchecked, these would suck about $600 billion out of the economy next year and lead to a new recession, according to the Congressional Budget Office.

(Reporting by Atul Prakash)

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France Grants Its Recognition to Syria Rebels

Javier Manzano/Agence France-Presse — Getty Images

Smoke billowed from burning tires as a Syria rebel fired towards regime forces during clashes in the Al-Amariya district of Aleppo in Syria on Tuesday.

PARIS — France announced Tuesday that it was recognizing the newly formed Syrian rebel coalition and would consider arming the group, seeking to inject momentum into a broad Western and Arab effort to build a viable and effective opposition that would hasten the end of a stalemated civil war that has destabilized the Middle East.

The announcement by President François Hollande made France the first Western country to fully embrace the new coalition, which came together this past weekend under Western pressure after days of difficult negotiations in Doha, Qatar.

The goal was to make an opposition leadership — both inside and outside the country — representative of the array of Syrian groups pressing for the downfall of President Bashar al-Assad. Although Mr. Assad is increasingly isolated as his country descends further into mayhem and despair after 20 months of conflict, he has survived partly because of the disagreements and lack of unity among his opponents.

Throughout the conflict, the West has taken half measures and been reluctant to back an aggressive effort to oust Mr. Assad. This appears to be the first time that Western nations, with Arab allies, are determined to build a viable opposition leadership that can ultimately function as a government. Whether it can succeed remains unclear.

Mr. Hollande went beyond other Western pledges of support for the new Syrian umbrella rebel group, which calls itself the National Coalition of Syrian Revolutionary and Opposition Forces. But Mr. Hollande’s announcement clearly signaled expectations that if the group can establish political legitimacy and an operational structure inside Syria, creating an alternative to the Assad family’s four decades in power, it will be rewarded with further recognition, money and possibly weapons.

“I announce that France recognizes the Syrian National Coalition as the sole representative of the Syrian people and thus as the future provisional government of a democratic Syria and to bring an end to Bashar al-Assad’s regime,” said Mr. Hollande, who has been one of the Syrian president’s harshest critics.

As for weapons, Mr. Hollande said, France had not supported arming the rebels up to now, but “with the coalition, as soon as it is a legitimate government of Syria, this question will be looked at by France, but also by all countries that recognize this government.”

Political analysts called Mr. Hollande’s announcement an important moment in the Syrian conflict, which began as a peaceful Arab Spring uprising in March 2011. It was harshly suppressed by Mr. Assad, turned into a civil war and has left nearly 40,000 Syrians dead, displaced about 2.5 million and forced more than 400,000 to flee to neighboring countries, according to international relief agencies.

“It’s certainly another page of the story,” Augustus Richard Norton, a professor of international relations at Boston University and an expert on Middle East political history, said of the French announcement. “I think it’s important. But it will be much more important if other countries follow suit. I don’t think we’re quite there yet.”

Some drew an analogy to France’s leading role in the early days of the Libyan uprising when it helped funnel aid, and later military support, to the rebels who had firmly established themselves in eastern Libya and would later topple Col. Muammar el-Qaddafi. But in Syria, rebels have not been as organized and have no hold on significant amounts of territory — at least not enough to create a provisional government that could resist Mr. Assad’s military assaults. The West has also refused, so far, to impose a no-fly zone over Syria, which was critical to the success of the Libyan uprising.

Andrew J. Tabler, a Syria expert at the Washington Institute for Near East Policy, said that the new coalition would have to create a secure zone in Syria to be successful, and that that step would require support from the United States, which was instrumental in the negotiations that led to the group’s creation but has not yet committed to giving it full recognition.

What the French have done, Mr. Tabler said, is significant because they have started the process of broader recognition, putting pressure on the group to succeed. “They’ve decided to back this umbrella organization and hope that it has some kind of political legitimacy and keep it from going to extremists,” he said. “It’s a gamble. The gamble is that it will stiffen the backs of the opposition.”

Steven Erlanger reported from Paris, and Rick Gladstone from New York. Reporting was contributed by Neil MacFarquhar and Hwaida Saad from Beirut, Lebanon; Nick Cumming-Bruce from Geneva; and Richard Berry from Paris.

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Cellphones may get smaller Holiday lift: Gartner

(Reuters) – The pre-Christmas shopping season is likely to boost cellphone sales less that usual this year as a weaker global economy forces consumers to cut back, research firm Gartner said on Wednesday.

“It will be a cautious quarter. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents,” Gartner analysts said.

Gartner said sales of cellphones declined 3 percent in the third quarter from a year earlier, falling for the third quarter in a row, while sales of smartphones grew 47 percent.

Smartphone growth this year is boosted by strong demand in China, where annual sales will grow to 165-170 million from 78 million a year earlier, it said.

“There is huge growth coming from the Chinese market,” said Gartner analyst Anshul Gupta.

This is helping local players to climb in global cellphone rankings, with ZTE, Huawei and TCL now among the seven largest cellphone vendors globally, Gartner said.

Samsung Electronics continues to lead the global cellphone sales ranking, ahead of Nokia and Apple. In smartphone sales Nokia, which still lead the market early last year, dropped to No 7, Gartner said.

(Reporting By Tarmo Virki)

Gadgets News Headlines – Yahoo! News

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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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Fed's Yellen backs holding rates near zero to 2016

BERKELEY, California (Reuters) - Federal Reserve Vice Chair Janet Yellen said on Tuesday that U.S. short-term interest rates may need to stay near zero until early 2016, a half year longer than Wall Street dealers expect, to forcefully lift employment.

The central bank's No. 2 official, viewed as a front-runner to succeed Fed Chairman Ben Bernanke when his term expires in January 2014, also said she strongly backed adopting inflation and unemployment thresholds to guide future policy.

That would allow the Fed to move away from shaping financial market expectations with calendar dates. After its last meeting in October, the Fed reiterated that it expected to keep the overnight federal funds rate near zero until at least mid-2015.

Yellen, however, argued an optimal policy would keep rates on hold for longer at the cost of a bit more inflation.

"This highly accommodative policy path generates a faster reduction in unemployment than in the baseline, while inflation overshoots the (Fed policy) committee's 2.0 percent objective for several years," she told students at the Haas School of Business at the University of California, Berkeley.

As a baseline, Yellen used an early September consensus from Wall Street firms, which showed they expected rates to remain near zero only through the first half of 2015.

Yellen is seen as one of the more dovish members of the Fed's policy-setting committee in her willingness to support aggressive efforts to spur job growth, but some other members are more hawkish in their concerns about inflation.

Dallas Federal Reserve Bank President Richard Fisher, asked about the 2016 date, said there was a limit to how much more monetary policy could do to spur growth.

"There is a limit. We'll have to discuss as a committee what that limit is ... we just cannot continue down the road of infinite expansion of monetary policy," he told CNBC television.

But Fisher, who is not a voter this year, also said that inflation and inflation expectations remained under control, and urged U.S. lawmakers to tackle a year-end fiscal cliff of potential tax hikes and spending cuts to remove uncertainty that he saw holding back business hiring.

The Fed cut overnight rates to near zero in December 2008 and it has bought around $2.3 trillion in securities to drive other borrowing costs down and spur a stronger recovery.

While there are signs the economy is gaining a bit of speed, the jobless rate remains stubbornly high at 7.9 percent.

POLICY PATIENCE

In January, the Fed adopted what it termed a "balanced approach" to its mandated goals of full employment and stable prices, suggesting it would temporarily tolerate a bit more inflation to move the jobless rate lower.

On prices, it normally targets 2.0 percent inflation and policymakers' current estimates suggest they view an unemployment rate of between 5.2 percent and 6.0 percent as consistent with maximum employment.

Yellen made clear that she does not view the inflation target as a ceiling and that slightly higher inflation may well be needed for the Fed to fulfill its promise to pursue a "balanced" monetary policy.

"The optimal policy to implement this 'balanced approach' to minimize deviations from the inflation and unemployment goals involves keeping the federal funds rate close to zero until early 2016," she said. She said rates would stay below the path expected by Wall Street dealers through 2018.

COMMUNICATING ON COMMUNICATIONS

Yellen stressed that communicating Fed intentions clearly was vital to the success of its policies, and emphatically endorsed adopting numerical thresholds for unemployment and inflation to guide expectations on when rates would go back up.

"Several of my ... colleagues have advocated such an approach and I am also strongly supportive," she said.

Chicago Federal Reserve Bank President Charles Evans has suggested holding rates steady until unemployment is under 7.0 percent, provided inflation remains below 3.0 percent. Minneapolis Fed chief Narayana Kocherlakota outlined thresholds of 5.5 percent unemployment and 2.25 percent inflation.

"The idea is to define a zone of combinations of the unemployment rate and inflation within which the (Fed) would continue to hold the federal funds rate in its current, near-zero range," Yellen said.

She said that would help shape expectations of the Fed's likely response to incoming data. Even so, she said the thresholds would not trigger a rate hike decision, which would require "further committee deliberation and judgment."

(Writing by Alister Bull; Editing by Lisa Shumaker)

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