As Syria's rebels close in, Assad has three options


The magnificent views across Damascus from the presidential palace on Mount Qassioun are unlikely to provide much comfort these days for Bashar al-Assad, Syria’s beleaguered head of state.


For several weeks, the skyline to the north, east, and south has been stained by black columns of smoke from artillery explosions and air strikes as Syrian government forces struggle to prevent the Free Syrian Army (FSA) rebels from inching ever closer to their goal of unseating Mr. Assad’s regime.


After 20 months of confrontation, Assad’s hold on power is looking increasingly frail, leaving him and his regime with few remaining options.


“There is no doubt that the regime’s capacity is declining and that the FSA continues to become ever stronger and better armed,” says a European diplomat closely following developments in Syria.


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The current status of the regime is uncertain and it is not even clear if Assad is still in charge. The diplomat says that Assad appears to have become a “prisoner of his own system,” no longer playing an active leadership role and confined to his palace. Instead, there are indications that an informal "security council” has emerged consisting of between 50 to 100 top regime and military figures drawn from the minority Alawite community which is handling the daily confrontation against the armed opposition.


THREE OPTIONS


Either way, the regime is steadily losing ground as the rebels attempt to encircle Damascus for an apparent final push into the city center, leaving Assad with three possible choices. The first – although least likely – option is to remain in the presidential palace to the bitter – and probably bloody – end, fulfilling a promise he made last month in an interview with Russian television to “live and die in Syria”.


A second possibility is to escape Damascus with his family and seek asylum in a third country, perhaps Iran or Venezuela, the governments of which openly support the Syrian regime. Faisal Miqdad, Syria’s deputy foreign minister, was reported to have visited Venezuela, Cuba, and Ecuador recently. Ecuador subsequently announced that it was not entertaining the idea of granting asylum to Assad.


The most likely option, however, and one that appears already to be under way, is for the regime and the core of the army and security forces to retreat to the Alawite-populated mountains on the Mediterranean coast. Diplomatic sources say that there are unconfirmed reports that the regime is planning to register all Sunnis who live in the coastal cities of Tartous, Banias, and Latakia which could potentially form part of an Alawite-dominated enclave. The coastal cities are predominantly Sunni-populated while the mountain hinterland is mainly Alawite.


EXODUS TO THE MOUNTAINS


Furthermore, there appears to be a steady and discreet trickle of families of pro-regime Alawite army officers leaving the upmarket Mezzeh neighborhood of Damascus for the coastal mountains.


“More and more regime supporters and, or their families are moving up the coast, and there are persistent rumors that at least part of the government now sits in Tartous,” the European diplomat says. “All indications are that the regime's fallback position is to retreat to the coastal area of ​​Tartous and Latakia.”


Significantly, units of the rebel Free Syrian Army operating north of Damascus appear to be limiting ambushes to south-bound military traffic heading to the capital along the main highway, the sources say. Vehicles heading north are left unmolested, raising the possibility that the highway, which leads to Tartous, is being offered as an escape route for the regime to prevent a protracted and bloody last stand in Damascus.


INCREMENTAL RETREAT


Still, there might not be a mad dash for the mountains as Damascus falls but more of an incremental retreat.


“I think that the Assad regime will go in stages,” says Andrew Tabler, Syria expert at the Washington Institute for Near East Policy. “You have the north and east go and then after that there will be a real effort to hold on to Damascus as long as possible. But in the end I don't see that as viable.”


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Mr. Tabler says he envisages a staged pullback from Damascus first to the area west of Homs, Syria’s third largest city which lies two-thirds of the way along the Damascus-Tartous highway, and then to the mountains.


“Those areas are viable, I think, in the short- to medium-term,” he says.


A fallback to Homs would explain the fierce fighting that erupted in September and October in a string of villages between Homs and the border with Lebanon, 20 miles to the south. Syrian troops assisted by pro-regime Shabiha militiamen and combatants from Hezbollah, the Lebanese militant Shia group, fought rebel forces to maintain control of the villages which flank the vital Damascus-Tartous highway.


ALAWITE STATELET?


While there appears to be consensus among analysts that the regime will eventually decamp to the coastal region, what remains unclear is the nature of the enclave – if any – that would be established there. The prospect of creating a mini Alawite state along the lines of the French-engineered statelet between 1920 and 1937 appears improbable under current circumstances. It would require the suppression of hostile Sunnis in the coastal cities and would be internationally ostracized and subject to attack by the FSA.


The chief motivation for retreating to the mountains in the first place is self-preservation rather than state-building (Alawites represent about 12 percent of Syria’s 23 million, while Sunnis comprise about 70 percent).


“The Alawite community … is counting on [Assad’s] army to protect them from possible retribution from the rebel militias,” writes Joshua Landis, professor of Middle East history at the University of Oklahoma and author of the influential Syria Comment blog. “Sectarian hatred has been driven to a fever pitch by the brutality of the regime. Syrians have been putting hate into their hearts over the past two years, making the likelihood of some sort of retribution ever more likely and the ethnic cleansing a possibility, even if a small one at the time.”


A rump regime well-entrenched into the mountain villages defended by the Alawite core of the army and security services equipped with armor, artillery, air power and possibly even chemical and biological weapons could buy the Assads some breathing space during a likely period of chaos caused by a sudden leadership vacuum in Damascus. But it is questionable whether it would provide a long-term solution for the Assad clan’s survival.


ALAWITE DIVISIONS


Also working against a more formally established enclave is the fact that not all Alawites support the Assad regime. Some may prefer to cut a deal with the opposition rather than link the fate of the community to that of the Assads. Even Assad’s home town of Qordaha, 15 miles south east of Latakia, has reportedly seen some intra-Alawite unrest between supporters and opponents of the Assad clan.


The Assad family, under Bashar’s 12-year rule, has “all but seceded socially and economically” from its roots and has done “precious little” for the Alawites which remains one of the poorest communities in Syria, says Fred Hof, a senior fellow at the Atlantic Council’s Rafik Hariri Center for the Middle East and former special adviser for transition in Syria at the State Department.


“On top of that, they have placed this community in grave jeopardy by recklessly pursuing a sectarian strategy to save their skins and preserve their ability to acquire material wealth,” he says. “In sum, I think it would be inadvisable for the [Assads] and their chief enablers to try and set up shop in Latakia and vicinity. If they have to escape in that direction because of a closed Damascus airport, they’d do well to keep moving. Where to? I don’t know who would have them at this point.”


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Election underscores Ghana’s democratic reputation












ACCRA, Ghana (AP) — Voters in Ghana selected their next president Friday in a ballot expected to mark the sixth transparent election in this West African nation, known as a beacon of democracy in a tumultuous region.


Proud of their democratic heritage, residents of this balmy, seaside capital trudged to the polls more than four hours before the sun was even up, standing inches apart in queues that in some places stretched 1,000-people deep.












By afternoon, some voters were getting agitated, after hitches with the use of a new biometric system caused delays at numerous polling stations.


Each polling station had a single biometric machine, and if it failed to identify the voter’s fingerprint, or if it broke down, there was no backup. At one polling station where the machine had broken down, a local chief said he’d barely moved a few inches: “I’m 58 years old, and I’ve been standing in this queue all day,” Nana Owusu said. “It’s not good.”


Late Friday, when it became clear that large numbers of people had not been able to vote, the election commission announced it would extend voting by a second day. This nation of 25 million is, however, deeply attached to its tradition of democracy, and voters were urging each other to remain calm while they waited their turn to choose from one of eight presidential contenders, including President John Dramani Mahama and his main challenger, Nana Akufo-Addo. The election commission


“Elections remind us how young our democracy is, how fragile it is,” said author Martina Odonkor, 44. “I think elections are a time when we all lose our cockiness about being such a shining light of democracy in Africa, and we start to get a bit nervous that things could go back to how they used to be.”


Ghana was once a troubled nation that suffered five coups and decades of stagnation, before turning a corner in the 1990s. It is now a pacesetter for the continent’s efforts to become democratic. No other country in the region has had so many elections deemed free and fair, a reputation voters hold close to their hearts.


The incumbent Mahama, a former vice president, was catapulted into office in July after the unexpected death of former President John Atta Mills. Before becoming vice president in 2009, the 54-year-old served as a minister and a member of parliament. He’s also written an acclaimed biography, recalling Ghana’s troubled past, called “My First Coup d’Etat.”


Akufo-Addo is a former foreign minister and the son of one of Ghana’s previous presidents. In 2008, Akufo-Addo lost the last presidential election to Mills by less than 1 percent during a runoff vote. Both candidates are trying to make the case that they will use the nation’s oil riches to help the poor.


Besides being one of the few established democracies in the region, Ghana also has the fastest-growing economy. But a deep divide still exists between those benefiting from the country’s oil, cocoa and mineral wealth and those left behind financially.


A group of men who had just voted gathered at a small bar a block away from a polling station in the middle class neighborhood of South Labadi. Danny Odoteye, 36, who runs the bar, said that the country’s economic progress is palpable and that the ruling party, and its candidate, are responsible for ushering in a period of growth.


“I voted for John Mahama,” he said. “Ghana is a prosperous country. Everything is moving smoothly.”


Administrator Victor Nortey, sitting on a plastic chair across from him, disagreed, saying the country’s newfound oil wealth should have resulted in more change.


“I voted for Nana Akufo-Addo,” He said. “Now we have oil. What is Mahama doing with the oil money?” Nortey said. “We can use that money to build schools.”


In an interview on the eve of the vote, Akufo-Addo told The Associated Press that the first thing he will do if elected is begin working on providing free high school education for all. “It’s a matter of great concern to me,” he said, adding that he plans to use the oil wealth to educate the population, industrialize the economy and create better jobs for Ghanaians.


Policy-oriented and intellectual, Akufo-Addo is favored by the young and urbanized voters. He was educated in England and comes from a privileged family. The ruling party has depicted him as elitist.


“The idea that merely because you are born into privilege that automatically means you are against the welfare of the ordinary people, that’s nonsense,” he said.


Ghana had one of the fastest growing economies in the world in 2011. Oil was discovered in 2007 and the country began producing it in December 2010.


Throughout the capital, new condominiums are rising up next to slums and luxury cars creep along narrow alleys lined with open sewers. A mall downtown features a Western-style cinema and is packed on weekends with middle class families. At the same time shantytowns are cropping up, packed with the urban poor.


Polls show that voters are almost evenly split over who can best deliver on the promise of development.


Kojo Mabwa said that he is voting for Akufo-Addo, because he is impressed by his promise of free education. He dismissed critics that say the project is too ambitious. “There is money,” he said. “(The ruling party) has done nothing for us. They are misusing our money.”


Paa Kwesi, a 30-year-old systems analyst, said he doesn’t think Akufo-Addo is making promises he can keep.


“He says he can do free education, but you have to crawl before you can walk. It’s not possible,” he said.


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Associated Press writer Francis Kokutse contributed to this report from Accra, Ghana.


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Zynga seeks real-money gambling license in Nevada












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


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












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


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


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


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


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


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


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


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


(Reporting By Gerry Shih; Editing by Chris Gallagher)


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S.Africa’s Mandela admitted to hospital for tests












JOHANNESBURG (Reuters) – Former South African president Nelson Mandela was admitted to hospital on Saturday for medical tests, although the government said there was no cause for alarm.


A statement from President Jacob Zuma‘s office gave no details of the condition of the 94-year-old anti-apartheid leader.












Former President Mandela will receive medical attention from time to time which is consistent with his age,” the statement said.


President Zuma assures all that Madiba is doing well and there is no cause for alarm,” it added, referring to Mandela by his clan name.


Mandela, who became South Africa‘s first black president after the country’s first all-race elections in 1994, was admitted to hospital in February because of abdominal pain but released the following day after a keyhole examination showed there was nothing seriously wrong with him.


He has since spent most of his time in his ancestral home in Qunu, a village in the impoverished Eastern Cape province.


His frail health prevents him from making any public appearances in South Africa, although in the last few months he has continued to receive high-profile visitors, including former U.S. President Bill Clinton.


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U.N conference adopts extension of Kyoto climate accord




DOHA, Qatar (AP) -- A U.N. climate conference agreed Saturday to extend the Kyoto Protocol, a treaty that limits the greenhouse gas output of some rich countries but which will only cover about 15 percent of global emissions.


The extension was adopted by nearly 200 countries after hard-fought sessions and despite objections from Russia. The package of decisions also included vague promises of financing to help poor countries cope with climate change.


Though expectations were low for the two-week conference in Doha, many developing countries rejected the deal as insufficient to put the world on track to fight the rising temperatures that are raising sea levels. Some Pacific island nations see this as a threat to their existence.


"This is not where we wanted to be at the end of the meeting, I assure you," said Nauru Foreign Minister Kieren Keke, who leads an alliance of small island states. "It certainly isn't where we need to be in order to prevent islands from going under and other unimaginable impacts."


The 1997 Kyoto Protocol, which controls the greenhouse gas emissions of rich countries, expires this year. It was extended through 2020 to fill the gap until a wider global treaty is expected to take effect.


However, the second phase only covers about 15 percent of global emissions after Canada, Japan, New Zealand and Russia opted out.


The U.S. never joined Kyoto, partly because it didn't include China and other fast-growing developing countries.


Poor countries came into the talks in Doha demanding a timetable on how rich countries would scale up climate change aid for them to $100 billion annually by 2020 — a general pledge that was made three years ago.


But rich nations, including the United States, members of the European Union and Japan are still grappling with the effects of a financial crisis and were not interested in detailed talks on aid in Doha.


The agreement on financing made no reference to any mid-term financing targets, just a general pledge to "identify pathways for mobilizing the scaling up of climate finance."


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Ghana election, test of democratic reputation












ACCRA, Ghana (AP) — Voters in Ghana were selecting their next president and a 275-seat parliament in elections Friday, solidifying the West African nation‘s reputation as a beacon of democracy in the region.


Some 14 million people are expected to turn out. President John Dramani Mahama, in office for only five months, is running against seven contenders. A former vice president, Mahama became president in July after the unexpected death of former President John Atta Mills. The 54-year-old is also a former minister and parliamentarian and has written an acclaimed biography, “My First Coup d’Etat.”












His main challenger is Nana Akufo-Addo, a former foreign minister and the son of one of Ghana’s previous presidents. The contender lost the 2008 election to Mills by less than 1 percent. Both men are trying to make the case that they will use the nation’s newfound oil wealth to help the poor.


Ghana, a nation of 25 million, is one of the few established democracies in the region as well as the fastest-growing economy. But a deep divide still exists between those benefiting from the country’s oil, cocoa and mineral wealth and those left behind financially.


In an interview on the eve of the vote, Akufo-Addo told The Associated Press that the first thing he will do if elected is begin working on providing free high school education for all. “It’s a matter of great concern to me,” he said, adding that he plans to use the nation’s oil wealth to educate the population, industrialize the economy and create better jobs for Ghanaians.


Policy-oriented and intellectual, Akufo-Addo is favored by the young and urbanized voters. He was educated in England and comes from a privileged family. The ruling party has depicted him as elitist, which Akufo-Addo calls “a little PR construct.”


“The idea that merely because you are born into privilege that automatically means you are against the welfare of the ordinary people, that’s nonsense,” he said.


Ghana had one of the fastest growing economies in the world in 2011. Allegations of corruption against the ruling party are rife.


Akufo-Addo said that if elected, he would not be able to weed out corruption in the government overnight.


“It’s a long fight,” he said. “But we build the institutions that can fight it.”


He said that in 30 years in politics he has never been accused of corruption.


Many analysts believe Mahama and Akufo-Addo are neck-and-neck.


Results are expected to be announced by Sunday, but could be delayed. If no one wins an absolute majority, a second round of voting will be held on December 28.


All candidates have signed a peace pact and have promised to accept the results of Friday’s poll.


Ghana, a nation of 25 million, has previously held five transparent elections in a row. Nearby Mali, which was also considered a model democracy, was plunged into chaos this March following a military coup.


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Associated Press writer Francis Kokutse contributed to this report from Accra, Ghana.


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Crowdfunding websites clamor for clearer regulation












LONDON (Reuters) – A new breed of internet-based financiers are calling for action to end regulatory uncertainty they say is preventing them from getting money to the small and medium-sized businesses that need it.


The so-called crowdfunding sector raises cash from members of the public to fund lending and investment. Regulators, however, have proved resistant to pleas for adjustments to rules that are tailored to more traditional markets.












“Operators of these platforms find it difficult to launch and flourish because existing EU and UK regulation does not fit the new models,” operators within the sector said in an open letter to EU and UK policymakers on Friday.


The plea coincides with a summit to discuss proposals for regulating a market that has developed in reaction to reduced bank lending to small and medium-sized enterprises because of tougher capital rules and greater regulatory scrutiny.


A host of alternative financing models have cropped up online, many allowing individuals to lend to, or invest in, companies with sums from as little as 10 pounds ($ 16). Massolution, a research and advisory firm specializing in the sector, says that 1.2 billion euros ($ 1.6 billion) was raised globally from crowdfunding last year.


Though some crowdfunding websites have tried to fit their operations within the existing regulatory framework, most remain largely outside it.


Part of the problem in drawing up appropriate regulation is the wide range of activities involved. Some offer debt, some equity, while others seek donations for charity or funding for creative projects in return for some non-financial reward.


With little or no expected returns from the latter, the main regulatory focus would be on equity crowdfunding and peer-to-peer lending.


As well as making sure that individuals are aware of the inherent risk involved with putting money in start-ups, the industry wants to avoid the risk of scams by ensuring that platforms vet businesses adequately.


LOST IN THE CROWD


Britain’s Financial Services Authority (FSA) warned in August that inexperienced investors should be aware of the risks in crowdfunding websites. A few days later United States securities regulators put crowdfunding at the top of their annual investment scams list.


Views differ about how to tackle these risks without stifling an increasingly important source of funding, and the matter is complicated by the varying rules already in place in different countries across Europe.


Measures taken by Seedrs, the only crowdfunding website to have received FSA approval, include requiring investors to pass a test to show that they understand the risks.


“It is hard to come up with a whole securities regulation; sometimes it does have to be a bit incremental and adaptive,” Seedrs founder Jeff Lynn said. “There is no question at all this is going to be a space that will continue to move.”


Some would like the operation of such platforms to be a distinct regulated activity, but others argue for smaller steps, such as a cap on the sums that people can invest or lend.


The British government, keen to improve the flow of finance to small businesses to boost the sluggish economy, has set up a working group to look at all aspects of policy on such sites.


The FSA said that it considers authorization of crowdfunding schemes case by case. The European Commission, meanwhile, is considered as so far having had a largely observational role.


Though the introduction of a separate regulated activity could still be some way off, the co-founder of peer-to-peer site Zopa, Simon Deane-Johns, believes that increased engagement with governments and regulators shows that things are moving in the right direction.


“Over the next year or two it should become progressively easier to set up a platform,” he said, “possibly through a combination of the FSA understanding more readily where things fit within the current regime and balancing that with some self-regulation.”


(Editing by Alexander Smith and David Goodman)


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Jackson’s Hobbit: the journey begins












WELLINGTON (Reuters) – Film maker Peter Jackson wants to scare children with his latest movie – and perhaps even a few grown ups.


The first of the Hobbit movie trilogy – “The Hobbit: An Unexpected Journey” – is about to hit theatres, and Jackson says he’s tried to hold true to its roots as a children’s fantasy story, with scary bits.












“If they’re scared of the trolls great, if they’re scared of the goblins great, they know there are no goblins, they know there are no trolls, it’s a safe kind of danger,” he says.


The film, produced by MGM and Time Warner Inc, is the fourth in the Oscar-winning Jackson’s blockbuster “Lord of the Rings” film franchise, based on the books of author J.R.R. Tolkien.


It follows the journey of hobbit Bilbo Baggins, reluctantly pushed into travelling with 13 dwarves to steal treasure from a dragon and regain their homeland. During his travels, he comes by the ring that he later passes onto kinsman Frodo Baggins, which was at the core of the “Rings” trilogy.


Jackson says he’s worked to keep distance between the Hobbit, published in 1937, and the much darker Lord of the Rings, which came out nearly 20 years later.


“The Lord of the Rings has an apocalyptic sort of heavy themic end-of-the world quality to it, which the Hobbit doesn’t, which is one of the delights of it,” he said.


POMPOUS AND SMALL MINDED


The pointy eared, hairy footed hobbit Bilbo is played by British actor Martin Freeman, who says he’s tried to make Bilbo his own creation, a character audiences can root for despite his initial pomposity and small mindedness.


“You have to be able to follow him for the duration of the film, but I wanted him to be open and changeable and ready to be surprised,” Freeman said.


A key scene is an encounter in a cave between Bilbo and the creature Gollum, reprised in full computer generated splendor by Andy Serkis with the distinctive throaty whisper.


“It was a very rich experience,” he said, adding that playing Gollum again was “an absolute thrill”.


Such is the affection for the creature, who calls the magic ring “Precious”, that a 13 meter (42 feet) sculpture of Gollum hangs in the airport terminal at Wellington, which regards itself as the spiritual home of the Tolkien films and terms itself the “Middle of Middle Earth”.


Returning actors from the Rings trilogy, many of whom have only passing mention in the book, were no less enthusiastic. Ian McKellen returns for a leading role as the wispy-haired, grey bearded wizard, Gandalf, while Cate Blanchett is the elven queen Galadriel and Elijah Wood appears as Frodo Baggins.


“You couldn’t not come back, you had to come back,” says Hugo Weaving, the leader of the elves, Elrond.


HOBBIT – A FRAUGHT JOURNEY


The Hobbit film journey has not been without its setbacks.


Metro-Goldwyn-Mayer, owners of the film rights to the Tolkien books, had financial woes, prompting original director Guillermo del Toro to pull out and Jackson, already script writer and executive producer, to step in.


A major labor dispute prompted threats to move production out of New Zealand, and was solved by changing labor laws, while Jackson suffered a perforated ulcer and underwent surgery, delaying the film still further.


Though only two films were planned originally, Jackson has tapped Tolkien’s appendices to the Rings to make it into three.


Audiences are also getting more visual bangs for their buck, with the movies filmed in 3D and at 48 frames per second (fps), double the industry standard.


This delivers clearer pictures, but opinion is divided, with some critics calling it cartoon-like and jarring.


Jackson says he wants to drag the iPad generation back into theatres and the romance, excitement and mystery they offer.


“It’s more realistic, it’s more immersive. I almost feel a responsibility as a film maker to try to do my part at encouraging people to come to the movies, to watch the film in a cinema,” he said.


The second film “The Hobbit: The Desolation of Smaug” will be released in December next year, with the third “The Hobbit: There and Back Again” is due in mid-July 2014.


(Reporting by Gyles Beckford, editing by Elaine Lies)


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House panel seeks compounder group papers in meningitis probe












WASHINGTON (Reuters) – A U.S. congressional committee that oversees drug safety issues has asked a compounding pharmacists’ industry association to provide documents on the group’s role in helping pharmacies in their interactions with federal and state authorities.


The request to the International Academy of Compounding Pharmacists came as the House Energy and Commerce Committee continues an investigation into a deadly meningitis outbreak caused by contaminated compounded drugs.












In a letter released on Friday, 10 lawmakers cited a media report that the group “tutored pharmacists on how to sidestep” U.S. Food and Drug Administration requests for samples that would help the agency assess the quality of compounded drugs.


“Allegations that your association may have encouraged compounding pharmacists to attempt to impede the FDA from evaluating the efficacy and safety of their products, if true, raise serious concerns,” the lawmakers said.


The meningitis outbreak, linked to steroid injections from the Massachusetts-based New England Compounding Center, has sickened 541 people, 36 of whom have died, according to the U.S. Centers for Disease Control and Prevention.


(Reporting by Ros Krasny; Editing by Lisa Von Ahn)


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Jobless rate hits four-year low, but economists skeptical



As much as his fans scream and yell when he walks on water or levitates, most people have a pretty good idea that magician/illusionist Criss Angel is somehow tricking them and not actually defying the laws of physics.


In much the same why, when this morning's surprisingly strong jobs data came out, professional investors and economists alike knew immediately that something was up. In a month when one of the nation's most disruptive storms in recent history occurred, for the Bureau of Labor Statistics to report that Hurricane Sandy did not have an impact and the unemployment rate fell to a four-year low of 7.7% and 146,000 new jobs were created, that defies the laws of reason.


"It's a little hard to believe quite honestly," says Dan North, chief economist at Euler Hermes, in the attached video. "If there's any report that deserved caveats and conditions it's this one."


And he's not alone. Peter Kenny from Knight Capital calls the report a ''head scratcher'' in a note to clients today, saying he never looks a gift horse in the mouth, but just can't get comfortable with the numbers. And Andrew Wilkinson, chief economic strategist at Miller, Tabak & Co., who correctly called for a much stronger than expected number yesterday, is already expecting the 20,000 reduction in construction jobs to be short-lived, reminding clients that "we know what follows any disaster."


Related: Resist Urge to Panic on November Jobs Report Says Wilkinson


It's not like the markets weren't ready for a wild pitch, so to speak, of a jobs report. The Wall Street Journal went as far as calling it "the least important jobs report in five years" given the diffused post-election environment and the fact the Fed meets next week.


The reaction in financial markets so far has been modest, as investors are seeing right through the headline number and seized upon the fact that the labor force fell by 350,000 last month, while the participation rate also dipped to 63.6%.


"You saw the unemployment go down this month sharply, but probably for the wrong reason," North says, adding that the report is positive but still "way short of what we need to have for good growth."


With the jobs report now behind us, we begin to get set for the Fed's last meeting of the year, next Tuesday and Wednesday, with comparably low expectations, as economists like North, and presumably those that sit alongside Ben Bernanke at the central bank too, did not see this report as a game changer in any way.


What that means is that we can, as they say in the TV business, return to our regularly scheduled programming which means our singular focus on fiscal cliff resolutions can resume.



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