Legendary Indian sitarist, composer Ravi Shankar dead at 92






LOS ANGELES (Reuters) – Sitarist and composer Ravi Shankar, who helped introduce the sitar to the Western world through his collaborations with The Beatles, died in Southern California on Tuesday, his family said. He was 92.


Shankar, a three-time Grammy winner with legendary appearances at the 1967 Monterey Festival and at Woodstock, had been in fragile health for several years and last Thursday underwent surgery, his family said in a statement.






“Although it is a time for sorrow and sadness, it is also a time for all of us to give thanks and to be grateful that we were able to have him as a part of our lives,” the family said. “He will live forever in our hearts and in his music.”


In India, Prime Minister Manmohan Singh‘s office posted a Twitter message calling Shankar a “national treasure and global ambassador of India‘s cultural heritage.”


“An era has passed away with … Ravi Shankar. The nation joins me to pay tributes to his unsurpassable genius, his art and his humility,” the Indian premier added.


Shankar had suffered from upper respiratory and heart issues over the past year and underwent heart-valve replacement surgery last week at a hospital in San Diego, south of Los Angeles.


The surgery was successful but he was unable to recover.


“Unfortunately, despite the best efforts of the surgeons and doctors taking care of him, his body was not able to withstand the strain of the surgery. We were at his side when he passed away,” his wife Sukanya and daughter Anoushka said.


Shankar lived in both India and the United States. He is also survived by his daughter, Grammy-winning singer Norah Jones, three grandchildren, and four great-grandchildren.


Shankar performed his last concert with his daughter Anoushka on November 4 in Long Beach, California, the statement said. The night before he underwent surgery, he was nominated for a Grammy for his latest album “The Living Room Sessions, Part 1.”


‘NORWEGIAN WOOD’ TO ‘WEST MEETS EAST’


His family said that memorial plans will be announced at a later date and requested that donations be made to the Ravi Shankar Foundation.


Shankar is credited with popularizing Indian music through his work with violinist Yehudi Menuhin and The Beatles in the late 1960s, inspiring George Harrison to learn the sitar and the British band to record songs like “Norwegian Wood” (1965) and “Within You, Without You” (1967).


His friendship with Harrison led him to appearances at the Monterey and Woodstock pop festivals in the late 1960s, and the 1972 Concert for Bangladesh, becoming one of the first Indian musicians to become a household name in the West.


His influence in classical music, including on composer Philip Glass, was just as large. His work with Menuhin on their “West Meets East” albums in the 1960s and 1970s earned them a Grammy, and he wrote concertos for sitar and orchestra for both the London Symphony Orchestra and the New York Philharmonic.


Shankar served as a member of the upper chamber of the Parliament of India, from 1986 to 1992, after being nominated by then Indian Prime Minister Rajiv Gandhi.


A man of many talents, he also wrote the Oscar-nominated score for 1982 film “Gandhi,” several books, and mounted theatrical productions.


He also built an ashram-style home and music center in India where students could live and learn, and later the Ravi Shankar Center in Delhi in 2001, which hosts an annual music festival.


Yet his first brush with the arts was through dance.


Born Robindra Shankar in 1920 in India‘s holiest city, Varanasi, he spent his first few years in relative poverty before his eldest brother took the family to Paris.


For about eight years, Shankar danced in his brother’s Indian classical and folk dance troupe, which toured the world. But by the late 1930s he had turned his back on show business to learn the sitar and other classical Indian instruments.


Shankar earned multiple honors in his long career, including an Order of the British Empire (OBE) from Britain’s Queen Elizabeth for services to music, the Bharat Ratna, India‘s highest civilian award, and the French Legion d’Honneur.


(Editing by Eric Walsh)


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U.N.’s Ban launches bid to stamp out cholera in Haiti






UNITED NATIONS (Reuters) – U.N. Secretary-General Ban Ki-moon launched a $ 2.2 billion initiative on Tuesday to stamp out cholera over the next decade in impoverished Haiti, where an epidemic has killed thousands of people and been blamed on U.N. peacekeepers.


Cholera – an infection causing severe diarrhea that can lead to dehydration and death – has killed some 7,750 Haitians and sickened almost 620,000 since October 2010. It occurs in places with poor sanitation and can be treated with clean fluids.






An independent panel appointed by Ban to study the epidemic issued a May 2011 report that did not determine conclusively how the cholera was introduced to Haiti. But the U.S. Centers for Disease Control and Prevention in June 2011 found that evidence strongly suggested U.N. peacekeepers from Nepal were the source.


The World Health Organization projects up to 112,000 cases in Haiti during 2012.


“Haiti has seen a dramatic fall in infection and fatality rates. But this will not be a short-term crisis. Eliminating cholera from Haiti will continue to require the full cooperation and support of the international community,” Ban said.


Ban said Haiti needed $ 500 million to implement the first two years of the initiative, which will also address the spread of the cholera outbreak to neighboring Dominican Republic.


“The main focus is on the extension of clean drinking water and sanitation systems,” Ban said. “But we are also determined to save lives now through the use of an oral cholera vaccine.”


“Because global vaccines are in short supply, we will first target high-risk areas: densely populated urban areas and rural areas far removed from health services,” he said. “As production increases, the vaccine effort will expand its reach.”


Ban announced that $ 215 million in existing funds from donors would be used to support the initiative, while the United Nations would contribute $ 23.5 million on top of $ 118 million the U.N. system has already spent on the cholera outbreak.


“I will use every opportunity in the months ahead to mobilize even more funding,” Ban said.


Haiti’s Prime Minister Laurent Lamothe told Reuters in September that the epidemic was “regrettable” but had been brought under control. {ID:nL1E8KQ8WX]


Haiti is still struggling to lift itself from the rubble left by an earthquake in January 2010 that killed about 300,000 people and left more than 1.5 million homeless. Lamothe said 1.2 million of those had been moved back into homes, while the United Nations said 390,000 were still living in tent camps.


(Reporting by Michelle Nichols; Editing by Cynthia Osterman)


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India factory output surges 8.2%







India’s industrial output rose more than expected in October, boosted by increased demand during the festive season in the country.






Factory output rose 8.2% from a year earlier. Most analysts had forecast a rise of 4.5%.


Manufacturing activity, which accounts for almost two-thirds of overall output, rose 9.6% from a year earlier.


Analysts said the data was also helped by a low base and did not indicate a recovery in India’s economy.


Industrial production had dipped 5.1% during the same month last year.


“It’s a positive surprise, but bear in mind the jump is distorted by last year’s low base, and this is going to reverse in November,” said Rajeev Malik, a senior economist with CLSA.


Mr Malik explained that the festival of Diwali, which is traditionally associated with a surge in consumer demand in India, was celebrated in October last year and in November this year.


Factories mostly manufacture and ship their goods ahead of the festival, and as a result, there had been a fluctuation in demand during the respective months.


“The real, credible assessment will be possible only after the November data,” Mr Malik said.


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Egypt army given temporary power to arrest civilians






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


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






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


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


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


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


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


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


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


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


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


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


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


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


“VIOLENT CONFRONTATION”


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


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


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


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


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


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


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


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


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


“UNWELCOME” CHOICE


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


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


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


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


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


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


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


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


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


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


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


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Royal phone scandal highlights new media risks






CANBERRA (Reuters) – Back in 2007, as investigations were gathering strength into the UK phone hacking scandal involving journalists working under the umbrella of the Murdoch media empire, a comedy show based around prank telephone calls made a low-key debut in Britain.


‘Fonejacker’ proved such a hit with the British public that the next year the program, in which a masked caller bamboozles hapless victims, won a coveted BAFTA award for best comedy, underscoring the attraction of the prank call amid a blurring of a ceaseless news cycle with social media and entertainment.






But just such a prank telephone call, to a London hospital where Prince William‘s pregnant wife Kate was being treated, has sparked a firestorm in traditional and social media after the apparent suicide by the nurse who put the call through.


Much of the fury has been directed at laying blame for the nurse’s death on the Australian DJs who made the prank call, or the media in general, with the most vitriolic comments appearing on the public domains of Facebook and Twitter.


The social media outrage has become a story of its own, outlasting the original news value of a prank call, and has seen advertising pulled from the program which broadcast the hoax call and the suspension of the two radio announcers.


Shares in radio station 2DayFM’s owner, Southern Cross Austero fell 5 percent on Monday as the public backlash gathered strength.


Media commentators and analysts warn the rapidly changing traditional and social media worlds may have given people greater freedom of expression, but can unleash a genie which can have destructive or negative repercussions, without responsible behavior by both mainstream and social media operators.


“It’s all changing so fast that societal norms have retreated in confusion,” said veteran newspaper columnist Jennifer Hewett in the Australian Financial Review.


“What is clear is that we will soon look back to count the mounting costs and destructive force, as well as the great benefits, of the explosion of communication in an all-media, all-in, all-the-time world,” Hewett said.


Jacintha Saldanha, 46, was found dead in staff accommodation near London’s King Edward VII hospital on Friday after putting the hoax call through to a colleague who unwittingly disclosed details of Kate’s morning sickness to 2DayFM’s presenters.


Her death, still being investigated, followed still simmering outrage in Britain over phone hacking, as well as Australian anger over the power of radio announcers to plump ratings with a diet of shock, including a 2Day announcer who sparked fury by calling a woman journalist rival a “fat slag”.


And while in Britain the popular press were quick to seize the moral high ground and point the finger “Down Under”, Australian commentators pointed blame the other way, or at confusion over the changing role of media and voracious public demand for not only information, but increasingly titillation.


Australian newspaper columnist Mike Carlton said while 2Day FM and its parent company made good money by “entertaining simple minds”, for tabloid British papers to point “Down Under” over a ‘gotcha’ news genre they created was “towering hypocrisy”.


CHANGING MEDIA ETHICS


The social media condemnation of Saldanha’s death should prompt a re-think of ethics in the era of celebrity news, said Jim Macnamara, a media analyst from Australia’s University of Technology, Sydney.


“There is a lesson in this for media organizations everywhere, and for journalists and media personalities, and that is that they need to look at community standards and better self regulate,” said Macnamara.


The tragic fallout from the radio stunt has rekindled memories of the death of William’s mother Diana in a Paris car crash in 1997 and threatens to cast a pall over the birth of his and Kate’s first child.


Public amusement at the prank started turning when British media reported the call as a major security breach of the royal family’s privacy, despite the call never reaching Kate’s room and the information revealed by a nurse was already public.


But news of Saldanha’s death is what sparked the Internet firestorm, that once unleashed could not be controlled.


Hypocritically, some of the harshest criticism was on Twitter and Facebook, where people unleashed fury on Australian and British media, after having themselves publish news of Saldanha’s error under a Twitter topic #royalprank, which was repeated more than 15,000 times.


“When the twitterverse goes into meltdown, we all react with a chain reaction any nuclear plant would be proud of. I hope, in time, the world will learn to splash cold water on itself when these stories break and cool down, before we all get dragged into the mud of our own making,” Tristan Stewart-Robertson, a Glasgow-based journalist wrote in a blog on www.firstpost.com


(Editing by Michael Perry)


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“Homeland” creator: Stop using animals in military training






LOS ANGELES (TheWrap.com) – “Homeland” executive producer Gideon Raff is urging a cease-fire between the U.S. military and the animal kingdom.


Joining with the People for the Ethical Treatment of Animals, Raff has sent a letter to U.S. Secretary of Defense Leon Panetta, asking him to halt the use of animals in medical training exercises in favor of high-tech human simulators.






In his letter, Raff – a former paratrooper in the Israeli Defense Forces – claims that research by the IDF Medical Corps indicates that military personnel are better prepared for battlefield medical procedures when they’re trained with human stimulators and given real-life experience with patients than when they utilize “crude animal laboratories.”


“Having served as a paratrooper in the Israeli Defense Forces (IDF), I have the utmost concern for the health and security of the heroic service members – like those portrayed on my shows ‘Homeland’ and ‘Prisoners of War’ – who risk their lives to protect our safety and freedom,” Raff wrote in his letter to Panetta. (“Homeland” is a U.S. adaptation of his Israeli series, “Prisoners of War.”)


“But the U.S. Department of Defense is not saving soldiers’ lives by shooting, dismembering, blowing up, and killing thousands of animals each year for crude medical training drills,” he added. “I am troubled that this violence still goes on when more humane and effective ways of training medics and doctors are available, so I have joined PETA’s campaign to end this cruel practice.”


The letter concludes, “Caring for the well-being of animals and preparing the troops serving our countries are not mutually exclusive. In this case, sparing animals pain and death in training drills means that military personnel receive better medical training and ultimately better care if they are wounded on the battlefield.”


Raff, a vegan whose pro-animal crusade includes lobbying against monkey experiments in Israel, isn’t the only famous former military personnel to protest the U.S. government’s use of animals in allegedly cruel capacities. Oliver Stone and Bob Barker have also condemned the practice.


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FDA expands approval of J&J prostate cancer drug






WASHINGTON (AP) — The Food and Drug Administration on Monday expanded approval of Johnson & Johnson‘s prostate cancer pill Zytiga for men with an earlier stage of the disease.


The agency says Zytiga is now approved for late-stage prostate cancer patients who have not yet received chemotherapy, based on study results showing it can extend life by up to five months when taken by men in that group.






The FDA previously approved the drug in April 2011 for men with prostate cancer who have already taken the chemotherapy drug docetaxel.


Zytiga works by decreasing the male hormone testosterone. Testosterone stimulates the growth of prostate tumors, and treatment often includes drugs aimed at cutting the body’s testosterone production. While older drugs can block about 90 percent of the hormone, scientists say Zytiga blocks virtually all of it, which can help slow the disease.


The FDA approved the new indication based on a J&J study of 1,088 men with late-stage prostate cancer who had not already received chemotherapy.


The typical patient taking Zytiga survived five months longer than the typical patient taking a fake pill, or placebo.


When the study was stopped, the median time until cancer worsened in the group getting dummy pills was about eight months. Those on Zytiga were faring much better, so researchers could not yet report how long it would take their cancers to worsen.


FDA cancer drugs chief Dr. Richard Pazdur said the FDA’s approval “provides patients and health care providers the option of using Zytiga earlier in the course of treatment.”


Common side effects with the drug include fatigue, joint swelling, diarrhea, vomiting, cough and shortness of breath.


Shares of Johnson & Johnson rose 10 cents to $ 70.55 in afternoon trading Monday.


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S.Africa’s rand, bonds edge up ahead of data






JOHANNESBURG (Reuters) – South Africa’s rand firmed marginally on Tuesday ahead of a slew of domestic economic data but stayed within its recent trading range, awaiting further direction from global markets.


The rand was trading at 8.6700 against the dollar at 0640 GMT from Tuesday’s close of 8.6725.






“The data today will not have much impact on the rand. We will continue to look at international factors,” said Ion de Vleeschauwer, Bidvest Bank‘s chief dealer.


“We’re really stuck in the ranges between 8.60-70 and that will probably continue for the rest of the week.”


The rand was supported by a stabilising euro as nerves calmed over Italy’s latest political turmoil and prospects of more stimulus from the Federal Reserve pinned down the dollar, although weaker-than-expected data could put it under pressure.


Retail sales figures are due at 0700 GMT, with economists expecting year-on-year spending growth on the high street to have slowed to 4.0 percent in October.


At 1100 GMT, economists expect manufacturing output to have fallen 1.2 percent, hit by labour unrest in the mines.


The rand has lost more than 7 percent since the start of the year and came under pressure intense pressure from August because of wildcat strikes in the mining sector and a yawning current account deficit.


Government bonds rose, pushing yields down 2 basis points to 7.335 on the benchmark 2026 issue and 1 basis point to 5.46 percent for the shorter-dated 2015 note.


The Treasury will auction 2.1 billion rand of debt spread over the 2031 and 2048 government bonds at 0900 GMT.


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EU leaders in Norway to pick up Nobel Peace Prize






OSLO, Norway (AP) — European Union leaders on Sunday hailed the achievements of the 27-nation bloc, but acknowledged they need more integration and authority to solve problems, including its worst financial crisis, as they arrived in Norway to pick up this year’s Nobel Peace Prize.


Conceding that the EU lacked sufficient powers to stop the devastating 1992-95 Bosnia war, European Commission President Jose Manuel Barroso said that the absence of such authority at the time is “one of the most powerful arguments for a stronger European Union.”






Barroso spoke to reporters with EU Council President Herman Van Rompuy and the president of the EU Parliament, Martin Schulz, in Oslo, where the three leaders were to receive this year’s award, granted to the European Union for fostering peace on a continent ravaged by war.


Nobel committee chairman Thorbjoern Jagland will present the prize, worth $ 1.2 million, at a ceremony in Oslo City Hall, followed by a banquet at the Grand Hotel, against a backdrop of demonstrations in this EU-skeptic country that has twice rejected joining the union.


About 20 European government leaders, including German Chancellor Angela Merkel, French President Francois Hollande and British Deputy Prime Minister Nick Clegg, will be joining the ceremonies. They will be celebrating far away from the EU’s financial woes in a prosperous, oil-rich nation of 5 million on the outskirts of Europe that voted in 1972 and 1994 in referendums to stay out of the union.


The decision to award the prize to the EU has sparked harsh criticism, including from three peace laureates — South African Archbishop Desmond Tutu, Mairead Maguire of Northern Ireland and Adolfo Perez Esquivel from Argentina — who have demanded the prize money not be paid out this year. They say the bloc contradicts the values associated with the prize because it relies on military force to ensure security.


The leader of Britain’s Independence Party, Nigel Farage, in a statement described rewarding the EU as “a ridiculous act which blows the reputation of the Nobel prize committee to smithereens.”


Hundreds of people demonstrated against this year’s prize winners in a peaceful torch-lit protest that meandered through the dark city streets to Parliament, including Tomas Magnusson from the International Peace Bureau, the 1910 prize winner.


“This is totally against the idea of Alfred Nobel who wanted disarmament,” he said, accusing the Nobel committee of being “too close to the power” elite.


Dimitris Kodelas, a Greek lawmaker from the main opposition Radical Left party, or Syriza, said a humanitarian crisis in his country and EU policies could cause major rifts in Europe. He thought it was a joke when he heard the peace prize was awarded to the EU. “It challenges even our logic and it is also insulting,” he said.


The EU is being granted the prize as it grapples with a debt crisis that has stirred deep tensions between north and south, caused soaring unemployment and sent hundreds of thousands into the streets to protest austerity measures.


It is also threatening the euro — the common currency used by 17 of its members — and even the structure of the union itself, and is fuelling extremist movements such as Golden Dawn in Greece, which opponents brand as neo-Nazi.


Barroso acknowledged that the current crisis showed the union was “not fully equipped to deal with a crisis of this magnitude.”


“We do not have all the instruments for a true and genuine economic union … so we need to complete our economic and monetary union,” he said, adding that the new measures, including on a banking and fiscal union, would be agreed on in coming weeks.


He stressed that despite the crisis all steps taken had been toward “more, not less integration.”


Van Rompuy was optimistic saying that EU would come out of the crisis stronger than before. “We want Europe to become again a symbol of hope,” he said.


The EU says it will donate the prize money to projects that help children in conflict zones and will double it with EU funds.


The European Union grew from the conviction that ever-closer economic ties would ensure century-old enemies like Germany and France never turned on each other again, starting with the creation in 1951 of the European Coal and Steel Community, declared as “a first step in the federation of Europe.”


In 60 years it has grown into a 27-nation bloc with a population of 500 million, with other nations eagerly waiting to join, even as its unity is being threatened by the financial woes.


While there have never been wars inside EU territory, the confederation has not been able to prevent European wars outside its borders. When the deadly Balkans wars erupted in the 1990s, the EU was unable by itself to stop them. It was only with the help of the United States and after over 100,000 lives were lost in Bosnia was peace eventually restored there, and several years later, to Kosovo.


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RIM offers biggest clients incentives to adopt BB10






TORONTO (Reuters) – Research In Motion Ltd on Thursday outlined a program of incentives to encourage its biggest customers to run its soon-to-launch line of BlackBerry 10 devices, seeking to persuade corporations and government users to stick with its secure smartphones.


RIM is betting that the devices, to be launched on January 30, will revive its fortunes. That will depend to a large extent on the response from RIM’s enterprise customers — the business users who value BlackBerry’s strong security features.






Waterloo, Ontario-based RIM, once a smartphone pioneer, has bled market share to Apple Inc’s iPhone and devices powered by Google’s market-leading Android operating system, even among the business customers who once used BlackBerry exclusively.


RIM says its new devices will be faster and smoother than previous BlackBerry phones and will have a large catalog of apps, which are crucial to the success of any new line of smartphones.


It now plans to phase in a BlackBerry 10 Ready Program for enterprise customers, initially offering online training and webcasts, and then providing free trade-ups of licenses and services.


“We will be aggressively reaching out to our customers to make sure they are aware of this program,” said Bryan Lee, senior director of enterprise at RIM. “We see this as really the linchpin for helping our customers to transition to BB10.”


Early adoption of BlackBerry 10 by government and corporate clients will go a long way in easing the concerns of both RIM’s clients and investors. Many fear that a lackluster market reception to BB10 could seal RIM’s fate.


RIM, which does not say what percentage of its business comes from the enterprise customers, said its online training and webcast series are already in place. Trade-ups, including free upgrades on the licenses for BB10 operating system, will be available ahead of the January 30 launch.


Evercore Partners analyst Mark McKechnie said RIM’s step-by-step program to woo enterprise customers was a positive move, though it highlights the challenges RIM faces.


“We are encouraged with an ‘all out’ marketing campaign with the right incentives to motivate enterprises to upgrade,” he said in a note to clients. “Our take is that this will remove a roadblock for those already planning to upgrade, but likely won’t push too many who prefer to wait.”


McKechnie, who has an “equal-weight” rating on RIM’s stock, said the move is unlikely to tempt back customers who have already abandoned the BlackBerry in favor of iPhones and Android devices. RIM offers support for the rival devices, but needs corporates to update to Blackberry Enterprise Service 10 so they can power and run BB10 devices on their networks.


BB10 READY


RIM’s Lee said he sees tremendous excitement from enterprise customers who want to use the new platform, but he would not speculate on how many would be ready to transition to the new platform come launch day.


RIM said last month that its BlackBerry Enterprise Server 10, which runs the devices on corporate networks, is in beta testing with around 20 key government agencies and corporates.


Feedback on the BB10 devices and platform has been largely positive from both carriers and developers. Financial analysts remain divided.


Some have upgraded their ratings and targets on RIM’s share price in anticipation of a successful launch of BB10, while others believe the new platform has little chance of succeeding.


TD Securities analyst Scott Penner on Wednesday raised his price target on RIM to $ 12 from $ 9.50, but said RIM still faces significant hurdles.


RIM’s stock has surged over the last two months from multi-year lows around $ 6 as the launch date for the new devices nears. The stock is still more than 90 percent below the 2008 all-time high around $ 148.


The latest TSX data indicates that short positions in RIM shares have fallen dramatically in the last two weeks. The total short positions in RIM, a bet that the stock price will fall, on the TSX fell to 15.2 million as of November 30, down from 20.6 million in the prior two weeks.


RIM shares slipped 0.4 percent to $ 11.89 on the Nasdaq on Thursday. The Toronto-listed shares ended down 0.3 percent at C$ 11.81.


(Reporting by Euan Rocha; Editing by Jeremy Laurence, Janet Guttsman and Leslie Adler)


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