The Man With a China Growth Plan

China’s premier-elect, Li Keqiang, ran a province of 93 million people that endured three deadly fire disasters and an HIV blood scandal on his watch. His run of bad luck as Governor of Henan from 1998 to 2004 earned him the nickname Three-Fires Li in the foreign press. Beijing’s Communist officialdom, however, has high hopes for Li, an award-winning economist for his work on urbanization, in his new role as the country’s top economic policymaker.

In March, Li, 57, will inherit an economy forecast to grow at 7 percent in 2013, the slowest pace in at least 23 years, according to investment fund company Pimco. It will take major economic reforms to arrest the slowdown, encourage growth of globally competitive private sector companies, and address a widening income gap. China’s new leadership team, led by incoming Communist Party General Secretary and President-elect Xi Jinping, needs to roll back the dominant state-owned enterprises that receive the majority of loans from government-controlled banks, according to the World Bank’s “China 2030” study, which Li has publicly endorsed. Another task: Allow the markets—not bureaucrats—to determine the prices for everything from bank loans to raw materials.

Although millions have escaped poverty since Deng Xiaoping opened China to foreign investment and put in place limited reforms in 1978, the world’s second biggest economy faces new challenges—namely, what economists call the middle-income trap. That refers to the slower growth developing economies encounter when they fail to implement political, financial, and legal reforms needed to create a bigger middle class. Of 101 middle-income economies in 1960, only 13 became high-income societies by 2008, the World Bank estimates. The bank defines high-income as $ 12,476 or more in per-capita gross national income.

In speeches, Li hasn’t been shy about pointing to what he thinks are China’s economic shortcomings: an unsustainable rate of investment, an overdependence on exports, weak domestic consumption, and an underdeveloped service sector. Li has also emphasized the growing income inequality that resulted in city dwellers earning 3.3 times more than their rural counterparts in 2009.

More than 100 million people left farms for cities during Hu Jintao’s presidency, many for jobs in factories, and Li wants to see even faster urban migration to boost incomes. By 2030 as many as 300 million more people will have moved from the countryside to join 600 million already living in cities, the Organisation for Economic Co-operation and Development estimates. Urbanization “is the fuel for a sustained high-investment ratio in Chinese GDP,” says Stephen Roach, former nonexecutive chairman at Morgan Stanley (MS) in Asia and a senior fellow at Yale University. “But here’s the catch—urbanization is a transition strategy at best. It will have to have an increasingly services-led job creation to absorb the influx of surplus labor, and only then can the urbanization strategy really come to life.”

Rebalancing Chinese growth away from exports and expanding middle-class incomes will require taking on provincial governments and state-run companies and banks that have grown rich off the current system. “The big question is whether China will change before a crisis forces it to,” says David Loevinger, former senior coordinator for China affairs at the U.S. Treasury Department.

Few dispute Li’s economic credentials. During the years he spent running Henan and then Liaoning, these regions grew at more than 10 percent annually. He has a law degree and a Ph.D. in economics from Peking University. “He is a new generation of leader,” says Robert Lawrence Kuhn, author of How China’s Leaders Think and an adviser to the Chinese government. Yet it will take more than economic savvy to push through controversial economic reforms. Big state companies and bureaucrats “won’t be listening to a weak premier,” says Lam Wo Lap Willy, an adjunct professor of history at the Chinese University of Hong Kong. China needs an iron-fisted reformer like Premier Zhu Rongji, who fought government corruption and forced state-owned banks to deal with dud loans during the 1990s, he says. “People feared Zhu Rongji,” says Lam. “But nobody is going to fear Li Keqiang.”

The bottom line: China’s new reformist premier aims to expand migration to cities, where incomes are three times higher than in the countryside.

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Egypt reformist warns of turmoil from Morsi decree

CAIRO (AP) — Prominent Egyptian democracy advocate Mohammed ElBaradei warned Saturday of increasing turmoil that could potentially lead to the military stepping in unless the Islamist president rescinds his new, near absolute powers, as the country’s long fragmented opposition sought to unite and rally new protests.

Egypt‘s liberal and secular forces — long divided, weakened and uncertain amid the rise of Islamist parties to power — are seeking to rally themselves in response to the decrees issued this week by President Mohammed Morsi. The president granted himself sweeping powers to “protect the revolution” and made himself immune to judicial oversight.

The judiciary, which was the main target of Morsi’s edicts, pushed back Saturday. The country’s highest body of judges, the Supreme Judical Council, called his decrees an “unprecedented assault.” Courts in the Mediterranean city of Alexandria announced a work suspension until the decrees are lifted.

Outside the high court building in Cairo, several hundred demonstrators rallied against Morsi, chanting, “Leave! Leave!” echoing the slogan used against former leader Hosni Mubarak in last year’s uprising that ousted him. Police fired tear gas to disperse a crowd of young men who were shooting flares outside the court.

The edicts issued Wednesday have galvanized anger brewing against Morsi and the Muslim Brotherhood, from which he hails, ever since he took office in June as Egypt’s first freely elected president. Critics accuse the Brotherhood — which has dominated elections the past year — and other Islamists of monopolizing power and doing little to bring real reform or address Egypt’s mounting economic and security woes.

Oppositon groups have called for new nationwide rallies Tuesday — and the Muslim Brotherhood has called for rallies supporting Morsi the same day, setting the stage for new violence.

Morsi supporters counter that the edicts were necessary to prevent the courts, which already dissolved the elected lower house of parliament, from further holding up moves to stability by disbanding the assembly writing the new constitution, as judges were considering doing. Like parliament was, the assembly is dominated by Islamists. Morsi accuses Mubarak loyalists in the judiciary of seeking to thwart the revolution’s goals and barred the judiciary from disbanding the constitutional assembly or parliament’s upper house.

In an interview with a handful of journalists, including The Associated Press, Nobel Peace laureate ElBaradei raised alarm over the impact of Morsi’s rulings, saying he had become “a new pharaoh.”

“There is a good deal of anger, chaos, confusion. Violence is spreading to many places and state authority is starting to erode slowly,” he said. “We hope that we can manage to do a smooth transition without plunging the country into a cycle of violence. But I don’t see this happening without Mr. Morsi rescinding all of this.”

Speaking of Egypt’s powerful military, ElBaradei said, “I am sure they are as worried as everyone else. You cannot exclude that the army will intervene to restore law and order” if the situation gets out of hand.

But anti-Morsi factions are chronically divided, with revolutionary youth activists, new liberal political parties that have struggled to build a public base and figures from the Mubarak era, all of whom distrust each other. The judiciary is also an uncomfortable cause for some to back, since it includes many Mubarak appointees who even Morsi opponents criticize as too tied to the old regime.

Opponents say the edicts gave Morsi near dictatorial powers, neutering the judiciary when he already holds both executive and legislative powers. One of his most controversial edicts gave him the right to take any steps to stop “threats to the revolution,” vague wording that activists say harkens back to Mubarak-era emergency laws.

Tens of thousands of people took to the streets in nationwide protests on Friday, sparking clashes between anti-and pro-Morsi crowds in several cities that left more than 200 people wounded.

On Saturday, new clashed broke out in the southern city of Assiut. Morsi opponents and members of the Muslim Brotherhood swung sticks and threw stones at each other outside the offices of the Brotherhood‘s political party, leaving at least seven injured.

ElBaradei and a six other prominent liberal leaders have announced the formation of a National Salvation Front aimed at rallying all non-Islamist groups together to force Morsi to rescind his edicts.

The National Salvation Front leadership includes several who ran against Morsi in this year’s presidential race — Hamdeen Sabahi, who finished a close third, former foreign minister Amr Moussa and moderate Islamist Abdel-Moneim Aboul-Fotouh. ElBaradei says the group is also pushing for the creation of a new constitutional assembly and a unity government.

ElBaradei said it would be a long process to persuade Morsi that he “cannot get away with murder.”

“There is no middle ground, no dialogue before he rescinds this declaration. There is no room for dialogue until then.”

The grouping seems to represent a newly assertive political foray by ElBaradei, the former chief of the U.N. nuclear watchdog agency. ElBaradei returned to Egypt in the year before Mubarak’s fall, speaking out against his rule, and was influential with many of the youth groups that launched the anti-Mubarak revolution.

But since Mubarak’s fall, he has been criticized by some as too Westernized, elite and Hamlet-ish, reluctant to fully assert himself as an opposition leader.

The Brotherhood‘s Freedom and Justice political party, once headed by Morsi, said Saturday in a statement that the president’s decision protects the revolution against former regime figures who have tried to erode elected institutions and were threatening to dissolve the constitutional assembly.

The Brotherhood warned in another statement that there were forces trying to overthrow the elected president in order to return to power. It said Morsi has a mandate to lead, having defeated one of Mubarak’s former prime ministers this summer in a closely contested election.

Morsi’s edicts also removed Abdel-Meguid Mahmoud, the prosecutor general first appointed by Mubarak, who many Egyptians accused of not prosecuting former regime figures strongly enough.

Speaking to a gathering of judges cheering support for him at the high court building in Cairo, Mahmoud warned of a “vicious campaign” against state institutions. He also said judicial authorities are looking into the legality of the decision to remove him — setting up a Catch-22 of legitimacy, since under Morsi’s decree, the courts cannot overturn any of his decisions.

“I thank you for your support of judicial independence,” he told the judges.

“Morsi will have to reverse his decision to avoid the anger of the people,” said Ahmed Badrawy, a labor ministry employee protesting at the courthouse. “We do not want to have an Iranian system here,” he added, referring to fears that hardcore Islamists may try to turn Egypt into a theocracy.

Several hundred protesters remained in Cairo’s Tahrir Square Saturday, where a number of tents have been erected in a sit-in following nearly a week of clashes with riot police.

____

Brian Rohan contributed to this report from Cairo.

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Hobbits, superheroes put magic in NZ film industry

WELLINGTON, New Zealand (AP) — A crate full of sushi arrives. Workers wearing wetsuit shirts or in bare feet bustle past with slim laptops. With days to go, a buzzing intensity fills the once-dilapidated warehouses where Peter Jackson‘s visual-effects studio is rushing to finish the opening film in “The Hobbit” trilogy.

The fevered pace at the Weta Digital studio near Wellington will last nearly until the actors walk the red carpet Nov. 28 for the world premiere. But after “The Hobbit: An Unexpected Journey” hits theaters, there’s more work to be done.

Weta Digital is the centerpiece of a filmmaking empire that Jackson and close collaborators have built in his New Zealand hometown, realizing his dream of bringing a slice of Hollywood to Wellington. It’s a one-stop shop for making major movies — not only his own, but other blockbusters like “Avatar” and “The Avengers” and hoped-for blockbusters like next year’s “Man of Steel.”

Along the way, Jackson has become revered here, even receiving a knighthood. His humble demeanor and crumpled appearance appeal to distinctly New Zealand values, yet his modesty belies his influence. He’s also attracted criticism along the way.

The special-effects workforce of 150 on “The Lord of the Rings” trilogy a decade ago now numbers 1,100. Only five of Weta Digital‘s workers are actual employees, however, while the rest are contractors. Many accept the situation because movie work often comes irregularly but pays well. Union leaders, though, say the workers lack labor protections existing in almost any other industry.

Like many colleagues, Weta Digital‘s director, Joe Letteri, came to New Zealand in 2001 to work on the “Rings” trilogy for two years. The work kept coming, so he bought a house in Wellington and stayed.

“People come here because they know it’s their chance to do something really great and to get it up on the screen,” he said in a recent interview. “And you want to do it in these next two weeks, because the two weeks after the movie’s finished are useless.”

Jackson, who declined to be interviewed for this story, launched Weta in 1993 with fellow filmmakers Jamie Selkirk and Richard Taylor. Named after an oversized New Zealand insect, the company later was split into its digital arm and Weta Workshop, which makes props and costumes.

Loving homages to the craft are present in Weta Digital’s seven buildings around the green-hilled suburb of Miramar. There are old-time movie posters, prop skulls of dinosaurs and apes, and a wall of latex face impressions of actors from Chris O’Donnell to Tom Cruise.

Its huge data center, with the computing power of 30,000 laptops, resembles a milk-processing plant because only the dairy industry in New Zealand knew how to build cooling systems on such a grand scale.

Little of Weta’s current work was visible. Visitors must sign confidentiality agreements, and the working areas of the facilities are off-limits. The company is secretive about any unannounced projects, beyond saying Weta will be working solidly for the next two years, when the two later “Hobbit” films are scheduled to be released.

The workforce has changed from majority American to about 60 percent New Zealanders. The only skill that’s needed, Letteri says, is the ability to use a computer as a tool.

Beyond having creativity as a filmmaker, Jackson has proved a savvy businessman, Letteri says.

“The film business in general is volatile, and visual effects has to be sitting right on the crest of that wave,” Letteri says. “We don’t get asked to do something that somebody has seen before.”

The government calculates that feature films contribute $ 560 million each year to New Zealand‘s economy. Like many countries, New Zealand offers incentives and rebates to film companies and will contribute about $ 100 million toward the $ 500 million production costs of “The Hobbit” trilogy. Almost every big budget film goes through Jackson’s companies.

“New Zealand has a good reputation for delivering films on time and under budget, and Jackson has been superb at that,” says John Yeabsley, a senior fellow at New Zealand‘s Institute of Economic Research. “Nobody has the same record or the magic ability to bring home the bacon as Sir Peter.”

“You cannot overestimate the fact that Peter is a brand,” says Graeme Mason, chief executive of the New Zealand Film Commission. “He’s built this incredible reputational position, which has a snowball effect.”

Back in 2010, however, a labor dispute erupted before filming began on “The Hobbit.” Unions said they would boycott the movie if the actors didn’t get to collectively negotiate. Jackson and others warned that New Zealand could lose the films to Europe. Warner Bros. executives flew to New Zealand and held a high-stakes meeting with Prime Minister John Key, whose government changed labor laws overnight to clarify that movie workers were exempt from being treated as regular employees.

Helen Kelly, president of the New Zealand Council of Trade Unions, says a compromise could easily have been reached. She says the law changes amounted to unnecessary union-busting and a “gross breach” of employment laws.

“I was very disappointed at Peter Jackson for lobbying for that,” she says, “and I was furious at the government for doing it.”

Weta Digital’s general manager Tom Greally compared it to the construction industry, where multiple contractors and mobile workers do specific projects and then move on.

Animal rights activists said last week they plan to picket the premiere of “The Hobbit” after wranglers alleged that three horses and up to two dozen other animals died in unsafe conditions at a farm where animals were boarded for the movies. Jackson’s spokesman Matt Dravitzki acknowledged two horses died preventable deaths at the farm but said the production company worked quickly to improve animal housing and safety. He rejected claims any animals were mistreated or abused.

Jackson’s team pointed out that 55 percent of animal images in “The Hobbit” were computer generated at Weta. The People for the Ethical Treatment of Animals (PETA) have asked Jackson in the future to create all his animals in the studio.

Controversies aside, the rise of Weta and the expat American community in and around Miramar is visible in everything from a Mexican restaurant to yoga classes. On Halloween, which in the past was not much celebrated in New Zealand, hundreds of costumed children roamed about collecting candy. Americans gave the tradition a boost here, but the locals have embraced it.

The National Business Review newspaper estimates Jackson’s personal fortune to be about $ 400 million, which could rise considerably if “The Hobbit” franchise succeeds. Public records show Jackson has partial ownership stakes in 21 private companies, most connected with his film empire. He’s spent some of his money on philanthropy, helping save a historic church and a performance theater.

For all his influence, Jackson maintains a hobbit-like existence himself, preferring a quiet home life outside of work. In the end, many say, he seems to be driven by what has interested him from the start: telling great stories on the big screen.

___

Follow Nick Perry on Twitter at http://twitter.com/nickgbperry

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First Person: Unemployed, Disabled and Hungry for Work

Five million Americans are among the long-term unemployed–those without a job for 27 weeks or longer–according to the Bureau of Labor Statistics. Another 7.3 million are looking for work, while the unemployment rate sits at 7.9 percent. Numbers aside, individual stories illustrate how America is affected. To see how joblessness hits home, Yahoo News asked unemployed workers to share their job-hunting stories. Here’s one.

FIRST PERSON | I am 40 and live in Racine, Wis. I have been unemployed since I was 33. I try to find work, but I’ve been disabled since 27, and I do not collect Social Security or other income. On job applications, when I am asked if I have any disabilities, I answer yes.

I have even tried to travel to different states for employment. I am seeking employment where I can. I have tried Lowe’s, Home Depot and other similar stores. All I get are letters saying I do not qualify for employment.

By trade, I am a tattoo artist, a job I have been very good at until I became disabled. I have shoulder impingement syndrome, which consists of some of the following: torn ligaments, torn tendons, bone spurs, bursitis and arthritis.

And constant pain. I feel the weather. I hardly sleep. I wish I could be somewhere else, as it is hard on my mind to deal with on a daily basis.

Still, I try to find work where I can in this tough economy, and I am on several lists to be called and never have been called to date.

I am too proud to try to get Social Security. I cannot even afford insurance to get my condition fixed. I even have applied for local state insurance to get the problem resolved so I can work again, always with no luck. So I have remained unemployed now for over 10 years and going.

I injured myself, and I am not able to lift more than 10 pounds at a time or stand or sit for long periods of time.

I just want a job so I can try to cover the medical expenses myself since I cannot get help. Surgery costs are around $ 18,000, which sounds pretty reasonable to me.

I am no stranger to hard work. Since 12, I cut grass, shoveled snow, painted houses and fences, swept chimneys, worked in heat treatment plants with dirt and oil, worked in the casting of hot metals, laid brick, made bathroom sinks, swept floors in factories, did drill-press work, sanding work, and worked at fast food places.

I do not lie to get jobs or hid my injury. I do want to work, but I worry now that my disability will mean I won’t be hired by companies because they’re afraid it will come back on them and their company.

I cannot afford private insurance as I do not have steady income. Now I find whatever I can do to reach my goal of paying for my own surgery.

It is a sad world when you live in pain, day in and day out, and you want and need to find work.

Health News Headlines – Yahoo! News

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Beijing’s S. China Sea rivals protest passport map

TAIPEI, Taiwan (AP) — China has enraged several neighbors with a few dashes on a map, printed in its newly revised passports that show it staking its claim on the entire South China Sea and even Taiwan.

Inside the passports, an outline of China printed in the upper left corner includes Taiwan and the sea, hemmed in by the dashes. The change highlights China’s longstanding claim on the South China Sea in its entirety, though parts of the waters also are claimed by the Philippines, Vietnam, Taiwan, Brunei and Malaysia.

China’s official maps have long included Taiwan and the South China Sea as Chinese territory, but the act of including them in its passports could be seen as a provocation since it would require other nations to tacitly endorse those claims by affixing their official seals to the documents.

Ruling party and opposition lawmakers alike condemned the map in Taiwan, a self-governed island that split from China after a civil war in 1949. They said it could harm the warming ties the historic rivals have enjoyed since Ma Ying-jeou became president 4 1/2 years ago.

“This is total ignorance of reality and only provokes disputes,” said Taiwan’s Mainland Affairs Council, the Cabinet-level body responsible for ties with Beijing. The council said the government cannot accept the map.

Philippine Foreign Secretary Albert del Rosario told reporters in Manila that he sent a note to the Chinese Embassy that his country “strongly protests” the image. He said China’s claims include an area that is “clearly part of the Philippines’ territory and maritime domain.”

The Vietnamese government said it had also sent a diplomatic note to the Chinese Embassy in Hanoi, demanding that Beijing remove the “erroneous content” printed in the passport.

In Beijing, the Foreign Ministry said the new passport was issued based on international standards. China began issuing new versions of its passports to include electronic chips on May 15, though criticism cropped up only this week.

“The design of this type of passports is not directed against any particular country,” Chinese Foreign Ministry spokeswoman Hua Chunying said at a daily media briefing Friday. “We hope the relevant countries can calmly treat it with rationality and restraint so that the normal visits by the Chinese and foreigners will not be unnecessarily interfered with.”

It’s unclear whether China’s South China Sea neighbors will respond in any way beyond protesting to Beijing. China, in a territorial dispute with India, once stapled visas into passports to avoid stamping them.

“Vietnam reserves the right to carry out necessary measures suitable to Vietnamese law, international law and practices toward such passports,” Vietnamese foreign ministry spokesman Luong Thanh Nghi said.

Taiwan does not recognize China’s passports in any case; Chinese visitors to the island have special travel documents.

China maintains it has ancient claims to all of the South China Sea, despite much of it being within the exclusive economic zones of Southeast Asian neighbors. The islands and waters are potentially rich in oil and gas.

There are concerns that the disputes could escalate into violence. China and the Philippines had a tense maritime standoff at a shoal west of the main Philippine island of Luzon early this year.

The United States, which has said it takes no sides in the territorial spats but that it considers ensuring safe maritime traffic in the waters to be in its national interest, has backed a call for a “code of conduct” to prevent clashes in the disputed territories. But it remains unclear if and when China will sit down with rival claimants to draft such a legally binding nonaggression pact.

The Philippines, Brunei, Malaysia and Vietnam are scheduled to meet Dec. 12 to discuss claims in the South China Sea and the role of China.

___

Associated Press writers Oliver Teves in Manila, Philippines, Chris Brummitt in Hanoi, Vietnam, and researcher Zhao Liang in Beijing contributed to this report.

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Country singer Kristofferson looks to end of road

GENEVA (Reuters) – Kris Kristofferson — Oxford scholar, athlete, U.S. Army helicopter pilot, country music composer, one-time roustabout, film actor, singer, lover of women, three times a husband and father of eight — seems ready to meet his maker.

At least, that was the clear impression he left with an audience of middle-aged-and-upwards fans at a concert in Geneva this week, a message underscored by his 28th and latest album, “Feeling Mortal” and its coffin-dark cover.

At a frail-looking 76, his ample beard more straggly than ever and his always gravel-laden voice gasping out the familiar lyrics of his great classics from “Bobby McGee” to “Rainbow Again”, the hereafter appears at the front of his mind.

“I’ve begun to soon descend, like the sun into the sea,” runs the title song of the new CD.

On the stage without backing group in Geneva, the first leg of a solo European tour to promote the disc from his own record company, “God” trips off his lips like a punctuation mark.

Even the old songs that made him — as well as other country artists like Willy Nelson, Johnny Cash, and his one-time girl-friend Janis Joplin — internationally famous, sound shaped by the fading voice to underscore a spiritual dimension.

“Sunday Morning Coming Down” emerges less as an ode to elderly loners facing old age without family and children and more as a call to prepare for the next life.

Religiosity was never that far from Kristofferson, son of a major-general in the U.S. Air Force, grandson of a Swedish army officer and in the 1ate 1950s a Rhodes Scholar in English Literature at England’s Oxford University.

CRUCIFIXION

In the 1971 “Jesus was a Capricorn” he predicts the Christian savior would be crucified again if he came back preaching peace and love among all races and creeds.

In the new album, “Ramblin’ Jack” is semi-autobiographical — a song about a wandering singer “with a face like a tumbled-down shack” of “wild and righteous, wicked ways” who “ain’t afraid of where he’s goin’.”

Kristofferson is adored by many believers, probably the vast majority of U.S. country fans and performers. But his fans among the unreligious and the atheists were also happy just to relish the poetry of his lyrics and the idiosyncrasy of his voice.

In Geneva, despite its Calvinist past as secular today as any major European city, the ageing 1,000-odd audience in a theatre seating twice that number, were certainly ready to enjoy anything he gave them.

They cheered and applauded his political declaration, an aside injected after a song line: “nobody wins.” “But somebody has just won. Obama won, so the whole world has won!” he rasped, waving his electric guitar in the air.

SELF-MOCKERY

They loved his self-mockery when, overcome briefly by a sniffle and pulling a blue bandana — cousin of the red one in “Bobby McGee”? — from his jeans pocket, he asked them if they minded having paid $ 100 “to watch an old fart blow his nose.”

And they laughed with him when — in the full flood of lyrics on the pleasure of being around “a lot of lovely girls in the best of all possible worlds — he confided: “I wrote this song a LONG time ago.”

His 22-year-old angel-faced daughter Kelly, a banjoist and vocalist, joined him on stage for a handful of numbers, while in the hall outside son Jesse manned a stall selling the new CD and the black “Feeling Mortal Tour” t-shirts.

Children — their dreams and the dreams of their parents for them — have also long been a central theme of his music.

“I wrote this for my little girl,” he says of a father’s song pledging he will be “forever there” for a daughter through life, and after. “Spread your wings,” he tells her.

More prosaically, he recalls a rebuke from Jesse at age five over his 1970s hit: “The Silver-Tongued Devil”: “That’s a bad song. You’re blaming all your troubles on someone else.”

After the concert, the Kristofferson family left for Zurich and Vienna to continue the tour. “This may be our last goodbye,” he sang in a final song. “We may not pass this way again.”

“We’ll miss you,” called a voice from the audience.

(Reported by Robert Evans)

Music News Headlines – Yahoo! News

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Four new cases of SARS-like virus found in Saudi, Qatar

LONDON (Reuters) – A new virus from the same family as SARS which sparked a global alert in September has now killed two people in Saudi Arabia, and total cases there and in Qatar have reached six, the World Health Organisation said.

The U.N. health agency issued an international alert in late September saying a virus previously unknown in humans had infected a Qatari man who had recently been in Saudi Arabia, where another man with the same virus had died.

On Friday it said in an outbreak update that it had registered four more cases and one of the new patients had died.

“The additional cases have been identified as part of the enhanced surveillance in Saudi Arabia (3 cases, including 1 death) and Qatar (1 case),” the WHO said.

The new virus is known as a coronavirus and shares some of the symptoms of SARS, or Severe Acute Respiratory Syndrome, which emerged in China in 2002 and killed around a 10th of the 8,000 people it infected worldwide.

Among the symptoms in the confirmed cases are fever, coughing and breathing difficulties.

Of the six laboratory-confirmed cases reported to WHO, four cases, including the two deaths, are from Saudi Arabia and two cases are from Qatar.

Britain’s Health Protection Agency, which helped to identify the new virus in September, said the newly reported case from Qatar was initially treated in October in Qatar but then transferred to Germany, and has now been discharged.

Coronaviruses are typically spread like other respiratory infections, such as flu, travelling in airborne droplets when an infected person coughs or sneezes.

The WHO said investigations were being conducted into the likely source of the infection, the method of exposure, and the possibility of human-to-human transmission of the virus.

“Close contacts of the recently confirmed cases are being identified and followed-up,” it said.

It added that so far, only the two most recently confirmed cases in Saudi Arabia were epidemiologically linked – they were from the same family, living in the same household.

“Preliminary investigations indicate that these two cases presented with similar symptoms of illness. One died and the other recovered,” the WHO’s statement said.

Two other members of the same family also suffered similar symptoms of illness, and one died and the other is recovering. But the WHO said laboratory test results on the fatality were still pending, and the person who is recovering had tested negative for the new coronavirus.

The virus has no formal name, but scientists at the British and Dutch laboratories where it was identified refer to it as “London1_novel CoV 2012″.

The WHO urged all its member states to continue surveillance for severe acute respiratory infections.

“Until more information is available, it is prudent to consider that the virus is likely more widely distributed than just the two countries which have identified cases,” it said.

(Editing by Alison Williams)

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EU budget talks end without deal

23 November 2012 Last updated at 16:35 ET

The Brussels summit has ended without agreement on the 27-strong union’s next seven-year budget.

A BBC correspondent says another meeting will have to be called to sort out the difficulties but it is unclear how differences will be resolved.

European Council chief Herman Van Rompuy said he was confident a deal would be reached early next year.

Hours of talks failed to bridge big gaps between richer countries and those which rely most on EU funding.

The UK said current EU spending levels must be frozen.

Continue reading the main story

“Start Quote

Angela Merkel and I both agreed that it would be better to take some time out”

End Quote Francois Hollande French president

The EU’s divisions are very clear and have become even more stark at a time of economic crisis, says the BBC’s Chris Morris in Brussels.

Mr Van Rompuy had reshuffled the allocations in his original proposed budget during the summit, but he kept in place a spending ceiling of 973bn euros (£783bn; $ 1.2tn).

With the eurozone’s dominant states, Germany and France, unable to agree on the budget, UK Prime Minister David Cameron had warned against “unaffordable spending”.

The failure to decide on a budget came just days after the finance ministers of the 17 eurozone states failed to agree on conditions for releasing a new tranche of bailout money to Greece, raising questions about the union’s decision-making process.

‘No threats’

Mr Van Rompuy’s budget had been unacceptable to a number of other countries, not just Britain, Mr Cameron told reporters.

Continue reading the main story

Analysis

The summit laid bare clear divisions between richer northern countries in the EU, and the poorer south and east. It mirrored the divide that has emerged in the eurozone between northern creditors and southern debtors.

But the uneasy relationship between France and Germany also played a role – when they don’t agree, things tend to move slowly. Germany wanted further cuts in the budget proposal – not as many as Britain and others – but cuts all the same.

France on the other hand, supported by Italy and Spain, was keen to defend the EU’s biggest spending projects.

So striking a deal at a second summit in the New Year won’t be at all easy. But there are two reasons to think that it might succeed.

One is that failure to reach an agreement would mean the EU falling back on more expensive annual budgets.

The other is that many people are keen to avoid a prolonged budget stalemate, which could divert attention from other more important issues – notably the need to take more steps to resolve the crisis in the eurozone.

“Together, we had a very clear message: ‘We are not going to be tough on budgets at home just to come here and sign up to big increases in European spending’,” he said.

“We haven’t got the deal we wanted but we’ve stopped what would have been an unacceptable deal,” he added. “And in European terms I think that goes down as progress.”

German Chancellor Angela Merkel said she was sympathetic towards Mr Cameron’s view – but no more than she was to all countries involved in the discussion.

“The discussions, both the bilateral discussions and the common discussion, have shown us that there is sufficient potential for an agreement,” she added.

French President Francois Hollande said the summit had made “progress”.

“There were no threats, no ultimatums,” he told reporters. “Angela Merkel and I both agreed that it would be better to take some time out because we want there to be an agreement.”

Without naming the UK, he also said it was time the system of budget rebates was reconsidered.

“It is a paradox, because some net contributors [EU countries that pay in more than they get back] get some of the money back even though they are in a situation where they are wealthy enough for them not to get this money back,” he said.

Lithuanian President Dalia Grybauskaite remarked that the atmosphere at the summit had been “surprisingly good because the divergence in opinions was so large that there was nothing to argue about”.

European Commission chief Jose Manuel Barroso said the talks had failed owing to “important differences of opinion – especially in overall size of the budget”.

Revisions

The Commission, which drafts EU laws, had originally called for a budget of 1.025tn euros.

UK Prime Minister David Cameron: “We still believe a deal is do-able”

Its position was supported by the European Parliament and many countries which are net beneficiaries, including Poland, Hungary and Spain.

While most EU members supported some increase in the budget, several, mostly the big net contributors, argued it was unacceptable at a time of austerity.

Germany, the UK, France and Italy are the biggest net contributors to the budget, which amounts to about 1% of the EU’s overall GDP.

Mr Van Rompuy’s revised budget would have softened the blow to the two main areas of spending: development in the EU’s poorer regions, and agriculture.

Instead, there would have been greater cuts to energy, transport, broadband and the EU’s foreign service.

His proposal, put to leaders on Thursday evening, would have made no change to the level of administrative costs – something the UK might have found unacceptable.

Speaking after the summit, Mr Van Rompuy said: “My feeling is that we can go further… It has to be balanced and well prepared, not in the mood of improvisation, because we are touching upon jobs, we are touching upon sensitive issues.”

Failure to agree on the budget by the end of next year would mean rolling over the 2013 budget into 2014 on a month-by-month basis, putting some long-term projects at risk.

Analysts say that could leave the UK in a worse position, because the 2013 budget is bigger than the preceding years of the 2007-2013 multi-year budget.

BBC News – Business

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Gaza ceasefire holds but mistrust runs deep

GAZA/JERUSALEM (Reuters) – A ceasefire between Israel and Hamas held firm on Thursday with scenes of joy among the ruins in Gaza over what Palestinians hailed as a victory, and both sides saying their fingers were still on the trigger.

In the sudden calm, Palestinians who had been under Israeli bombs for eight days poured into Gaza streets for a celebratory rally, walking past wrecked houses and government buildings.

But as a precaution, schools stayed closed in southern Israel, where nerves were jangled by warning sirens – a false alarm, the army said – after a constant rain of rockets during the most serious Israeli-Palestinian fighting in four years.

Israel had launched its strikes last week with a declared aim of ending rocket attacks on its territory from Gaza, ruled by the Islamist militant group Hamas, which denies Israel’s right to exist. Hamas had responded with more rockets.

The truce brokered by Egypt’s new Islamist leaders, working with the United States, headed off an Israeli invasion of Gaza.

It was the fruit of intensive diplomacy spurred by U.S. President Barack Obama, who sent his secretary of state to Cairo and backed her up with phone calls to Israeli Prime Minister Benjamin Netanyahu and Egyptian President Mohamed Mursi.

Mursi’s role in cajoling his Islamist soulmates in Gaza into the U.S.-backed deal with Israel suggested that Washington can find ways to cooperate with the Muslim Brotherhood leader whom Egyptians elected after toppling former U.S. ally Hosni Mubarak, a bulwark of American policy in the Middle East for 30 years.

Mursi, preoccupied with Egypt’s economic crisis, cannot afford to tamper with a 1979 peace treaty with Israel, despite its unpopularity with Egyptians, and needs U.S. financial aid.

MORE DEATHS

Despite the quiet on the battlefield, the death toll from the Gaza conflict crept up on both sides.

The body of Mohammed al-Dalu, 25, was recovered from the rubble of a house where nine of his relatives – four children and five women – were killed by an Israeli bomb this week.

That raised to 163 the number of Palestinians killed, more than half of them civilians, including 37 children, during the Israeli onslaught, according to Gaza medical officials.

Nearly 1,400 rockets struck Israel, killing four civilians and two soldiers, including an officer who died on Thursday of wounds sustained the day before, the Israeli army said.

Israel dropped 1,000 times as much explosive on the Gaza Strip as landed on its soil, Defense Minister Ehud Barak said.

Municipal workers in Gaza began cleaning streets and removing the rubble of bombed buildings. Stores opened and people flocked to markets to buy food.

Jubilant crowds celebrated, with most people waving green Hamas flags but some carrying the yellow emblems of the rival Fatah group, led by Western-backed President Mahmoud Abbas.

That marked a rare show of unity five years after Hamas, which won a Palestinian poll in 2006, forcibly wrested Gaza from Fatah, still dominant in the Israeli-occupied West Bank.

Israel began ferrying tanks northwards, away from the border, on transporters. It plans to discharge gradually tens of thousands of reservists called up for a possible Gaza invasion.

But trust between Israel and Hamas remains in short supply and both said they might well have to fight again.

“The battle with the enemy has not ended yet,” Abu Ubaida, spokesman of Hamas‘s armed wing Izz el-Deen Al-Qassam Brigades, said at an event to mourn its acting military chief Ahmed al-Jaabari, whose killing by Israel on November 14 set off this round.

“HANDS ON TRIGGER”

The exiled leader of Hamas, Khaled Meshaal, said in Cairo his Islamist movement would respect the truce, but warned that if Israel violated it “our hands are on the trigger”.

Netanyahu said he had agreed to “exhaust this opportunity for an extended truce”, but told Israelis a tougher approach might be required in the future.

Facing a national election in two months, he swiftly came under fire from opposition politicians who had rallied to his side during the fighting but now contend he emerged from the conflict with no real gains for Israel.

“You don’t settle with terrorism, you defeat it. And unfortunately, a decisive victory has not been achieved and we did not recharge our deterrence,” Shaul Mofaz, leader of the main opposition Kadima party, wrote on his Facebook page.

In a speech, Ismail Haniyeh, Hamas‘s prime minister in Gaza, urged all Palestinian factions to respect the ceasefire and said his government and security services would monitor compliance.

According to a text of the agreement seen by Reuters, both sides should halt all hostilities, with Israel desisting from incursions and targeting of individuals, while all Palestinian factions should cease rocket fire and cross-border attacks.

The deal also provides for easing Israeli curbs on Gaza’s residents, but the two sides disagreed on what this meant.

Israeli sources said Israel would not lift a blockade of the enclave it enforced after Hamas won a Palestinian election in 2006, but Meshaal said the deal covered the opening of all of the territory’s border crossings with Israel and Egypt.

Israel let dozens of trucks carry supplies into the Palestinian enclave during the fighting. Residents there have long complained that Israeli restrictions blight their economy.

Barak said Hamas, which declared November 22 a national holiday to mark its “victory”, had suffered heavy military blows.

“A large part of the mid-range rockets were destroyed. Hamas managed to hit Israel’s built-up areas with around a metric tone of explosives, and Gaza targets got around 1,000 metric tonnes,” he said.

He dismissed a ceasefire text published by Hamas, saying: “The right to self-defense trumps any piece of paper.”

He appeared to confirm, however, a Hamas claim that the Israelis would no longer enforce a no-go zone on the Gaza side of the frontier that the army says has prevented Hamas raids.

(Additional reporting by Noah Browning in Gaza, Ori Lewis, Crispian Balmer and Dan Williams in Jerusalem; Writing by Jeffrey Heller and Alistair Lyon; Editing by Giles Elgood)

World News Headlines – Yahoo! News

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Ex-’Price is Right’ model gets $8.5M in damages

LOS ANGELES (AP) — The producers of “The Price is Right” owe a former model on the show more than $ 7.7 million in punitive damages for discriminating against her after a pregnancy, a jury determined Wednesday.

The judgment came one day after the panel determined the game show’s producers discriminated against Brandi Cochran. They awarded her nearly $ 777,000 in actual damages.

Cochran, 41, said she was rejected when she tried to return to work in early 2010 after taking maternity leave. The jury agreed and determined that FremantleMedia North America and The Price is Right Productions owed her more than $ 8.5 million in all.

“I’m humbled. I’m shocked,” Cochran said after the jury announced its verdict. “I’m happy that justice was served today not only for women in the entertainment industry, but women in the workplace.”

FremantleMedia said it was standing by its previous statement, which said it expected to be “fully vindicated” after an appeal.

“We believe the verdict in this case was the result of a flawed process in which the court, among other things, refused to allow the jury to hear and consider that 40 percent of our models have been pregnant,” and further “important” evidence, FremantleMedia said.

In their defense, producers said they were satisfied with the five models working on the show at the time Cochran sought to return.

Several other former models have sued the series and its longtime host, Bob Barker, who retired in 2007.

Most of the cases involving “Barker’s Beauties” — the nickname given the gown-wearing women who presented prizes to contestants — ended with out-of-court settlements.

Comedian-actor Drew Carey followed Barker as the show’s host.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP .

Entertainment News Headlines – Yahoo! News

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