‘Dr. Phil”s stolen classic Chevy recovered












BURBANK, Calif. (AP) — Los Angeles police say they’ve recovered a stolen 1957 Chevrolet Bel Air Convertible that belongs to talk-show host Phil McGraw.


Detective Jess Corral said Tuesday that investigators recovered McGraw’s classic car, along with 13 others, after law enforcement began targeting auto theft rings.












McGraw is known as television’s “Dr. Phil. His car was stolen from the RODZ shop in Burbank in August, and was found with minor damage.


The car is worth at least $ 80,000.


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Chelsea’s hypotension drug fails to prove efficacy past week one












(Reuters) – Chelsea Therapeutics Inc said its experimental hypotension drug met the main goal of a study by significantly reducing dizziness in patients at week one, but results beyond that period were not statistically significant.


The U.S. Food and Drug Administration declined to approve the drug, Northera, in March, and asked for data that proved it was effective over two to three months.












The company’s shares, which have lost about two-thirds of its value so far this year, fell 22 percent to $ 1.40 in extended trading after closing at $ 1.79 on Tuesday on the Nasdaq.


Chelsea said in August that it would modify the main goal of the ongoing 306B study, though the FDA had said the study was unlikely to provide sufficient data for a marketing application and had suggested the company conduct an additional trial.


The drugmaker said on Tuesday that preliminary data showed that beyond week one, dizziness/lightheadedness and standing blood pressure predominantly favored Northera-treated patients over placebo, although the results were not statistically significant.


The drug, known generically as droxidopa, is designed to treat symptomatic neurogenic orthostatic hypotension — a chronic and often debilitating drop in blood pressure on standing up that is most often associated with Parkinson’s disease.


(Reporting by Vidya P L Nathan in Bangalore; Editing by Anthony Kurian)


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Obama firm on “fiscal cliff” amid Republican disarray












WASHINGTON (Reuters) – President Barack Obama held his ground on the “fiscal cliff” on Tuesday, insisting on higher tax rates for the wealthiest Americans, while Republicans showed increasing disarray over how far they should go to compromise with Obama‘s demands.


With less than a month left to confront the budget cuts and tax increases that will begin taking effect in January unless Congress acts, Obama dangled the possibility of lowering tax rates as part of a broad U.S. tax code revamp in 2013.












But he again insisted, in an interview with Bloomberg Television, that tax rates for the wealthiest 2 percent of taxpayers must rise in any deal by the end of the year to avert the assorted measures known as the fiscal cliff.


Obama, a Democrat, may face resistance from his own party if and when he’s forced to be specific about how he would cut the cost of entitlements, such as the Medicare health insurance program for seniors.


For the moment, however, the overall political picture Tuesday reflected a relatively solid front of Democrats versus an increasingly shaky group of Republicans.


Mitch McConnell, the Republican minority leader in the Senate, even avoided endorsing the negotiating position of his House of Representatives ally, Speaker John Boehner.


“I think it is important that the House Republican leadership has tried to move the process forward,” McConnell told reporters trying to get his views on a proposal Boehner and the House Republican leadership sent to Obama on Monday.


Outside the capital, concern mounted about how and when – not to mention if – the politicians might put their disagreements behind them and deal conclusively with an issue that economists say could trigger another recession.


Corporate chief executives were scheduled to meet with Obama later on Wednesday. The Business Roundtable, a lobbying group for corporations, has arranged the meetings. In addition to prompt action on the fiscal cliff, the group is seeking tax cuts for their companies.


Boeing Co. CEO Jim McNerney, who chairs the group, said its members want “a balanced solution to the nation’s fiscal cliff and long-term deficit and debt issues … including meaningful and comprehensive tax and entitlement reforms.”


The manufacturing sector contracted in November and posted its weakest performance in three years, a report showed on Monday. Companies taking part in the survey said uncertainty over the negotiations in Washington was a factor.


U.S. stocks slipped on Tuesday as investors fretted about Washington’s ability to avoid a year-end budget crisis.


REPUBLICAN DISARRAY


On Capitol Hill, conservative South Carolina Senator Jim DeMint attacked Boehner, a fellow Republican, over Monday’s fiscal cliff offer, which included $ 800 billion in revenue increases from overhauling the tax code, along with spending cuts and entitlement revisions, as part of a deficit reduction deal.


That amount, which Boehner informally accepted during previous debt-ceiling negotiations in 2011, was not enough to satisfy Obama. But it was too much for DeMint and other Republicans who have made opposition to tax increases of any kind a central part of their politics for many years.


Speaker Boehner‘s $ 800 billion tax hike will destroy American jobs and allow politicians in Washington to spend even more,” DeMint said in a statement on Tuesday.


Signaling some worry about fragmented sentiment in the House, Republican leaders took the unusual step of removing two hard-line Tea Party conservatives, Tim Huelskamp of Kansas and Justin Amash of Michigan, from the House Budget Committee, where elements of a fiscal cliff deal are likely to be considered.


A few House Republicans, such as Mike Simpson of Idaho and Steve King of Iowa, have said tax increases on the wealthiest may be tolerable under certain conditions.


OBAMA PRESSES ADVANTAGE


The president pressed his agenda on Tuesday, reiterating his openness to unspecified reforms in entitlement programs.


He repeated that as part of any deal, low tax rates on 98 percent of taxpayers should be extended, but that taxes on the top 2 percent should rise. “Let’s let those go up,” Obama said, referring to a “down payment” for future negotiations.


“And then let’s set up a process with a time certain, at the end of 2013 or the fall of 2013, where we work on tax reform, we look at what loopholes and deductions both Democrats and Republicans are willing to close, and it’s possible that we may be able to lower rates by broadening the base at that point.”


Fueling concerns among some Republicans about resisting compromise are surveys, like one released by the Pew Research Center on Tuesday, which showed that about 53 percent of those polled said they would hold Republicans more responsible than Democrats for going over the cliff; 27 percent said they would hold Obama responsible.


(Additional reporting by Kim Dixon, Rachelle Younglai, Fred Barbash; Writing by Kevin Drawbaugh; Editing by Fred Barbash and Eric Beech)


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WestJet embraces tech to woo business travelers












TORONTO (Reuters) – WestJet Airlines Ltd will use technological innovation, including a new Internet ticket booking system, to help it transform from a no-frills carrier to a lower-cost full-service airline courting lucrative corporate travelers, its chief executive said on Monday.


Canada’s second-biggest airline plans to launch a series of technology systems, most notably the new online booking engine, which will sell three tiers of tickets, in the next two months.












“Companies evolve or they die,” Chief Executive Gregg Saretsky told Reuters in a phone interview from the company’s Calgary head office.


“We’re 16 and going on 17 years old and we can’t stay just as we were 17 years ago. The world has changed. And we are changing to be more relevant for a broader segment of guests.”


The new Internet booking system, which WestJet hopes to launch in late January, will sell economy, mid-tier and premium tickets. That is a major shift from its current system, which sells only the lowest-priced ticket available.


Economy tickets under the new system will continue to sell the lowest available fare, but the cancellation fee for them will jump to C$ 75 ($ 75.48) from C$ 50. Mid-tier tickets will have a C$ 50 cancellation fee.


Premium tickets, unavailable until late March when WestJet finishes reconfiguring its 100 Boeing 737 planes to allow more leg room, will include priority screening and boarding, free cancellations and flexibility on ticket changes.


Pricing for those tickets, which may include free meals and drinks and an extra baggage allowance, has not yet been determined. Fares will be well below half the price for business class at WestJet’s bigger competitor, Air Canada, Saretsky said.


“It’s time for us to be more serious with respect to going after business travelers because frankly, they’re the ones who are booking last-minute and are happy to pay for the conveniences,” Saretsky said.


WestJet will launch its premium economy service with 24 seats per plane, but will consider expansion if it proves “wildly successful,” he added.


POISED FOR CHANGE


WestJet, which has spent about C$ 40 million over the past two years on technology projects, is poised for major changes in 2013 as it readies to launch a new regional airline, Encore.


Saretsky hopes that WestJet’s switch in coming weeks to a new Internet phone system will allow ticket reservation agents to work from home and help make room for Encore staff.


Some 750 reservation agents work at WestJet’s Calgary offices, which house about 2,400 staff. Space will be needed for Encore employees over the next 18 months while their office, hangars and maintenance stores are constructed at the WestJet campus.


Encore will be launch in the second half of 2013, “probably closer to July than December,” Saretsky said, with seven Bombardier Q400 planes.


While WestJet won’t announce Encore’s schedule until Jan 21, the carrier will initially serve only “a handful” of new cities, with ticket prices up to 50 percent below Air Canada’s, he added.


Over the next two months, WestJet will also roll out a guest notification system that alerts travelers via email about their flights, allowing them to check in remotely.


Such self-service technology will be critical as WestJet faces increasing labor costs, Saretsky said.


Wage and benefit costs, which represent about a third of operating costs, have climbed 50 percent since WestJet was founded in 1996.


“You can see that creates a little bit of drag on earnings,” Saretsky said. “We’ve got to find ways of reducing our component costs.”


If WestJet can increase self service options for travelers, that could limit the need for new employees, Saretsky said. Management also wants to improve attendance management, so that fewer employees book off sick around long weekends, and more quickly clean and process planes between flights, he said.


(Reporting By Susan Taylor; Editing by Peter Galloway)


(This story was corrected to show that WestJet is replacing its Internet booking engine, not entire reservation system, in the first and second paragraphs)


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Toshiba’s 10-inch Excite 10 SE tablet sells for $349.99, comes with Jelly Bean












While every other company is busy chasing the 7-inch tablet market, Toshiba (TOSBF) is keeping its eye on people interested in 10-inch tablets. Its new Excite 10 SE Android tablet is fairly similar to its Excite 10 LE, sporting a 10.1-inch 1280 x 800 resolution display, NVIDIA Tegra 3 quad-core processor, 16GB of internal storage, 3-megapixel rear camera, HD front camera, microSD card slot and Android 4.1 Jelly Bean. It doesn’t have the iPad’s eye-popping Retina display or the Samsung (005930) Nexus 10′s crisp 2,560 x 1,600 resolution with 300 pixels per inch, but it’s more than adequate for most basic tablet tasks. And at $ 349.99, it’s not a bad deal for a 10-inch tablet. The Excite 10 SE goes on sale December 6th and will be available from ToshibaDirect.com and select retail stores. Toshiba’s press release follows below.



Toshiba expands excite family of tablets with new 10-inch model












New Excite 10 SE Tablet Powered by Android 4.1 Starting at $ 349.99 MSRP


IRVINE, Calif. — Dec. 4, 2012 — Toshiba’s Digital Products Division (DPD), a division of Toshiba America Information Systems, Inc., today announced the availability of the Excite™ 10 SE tablet, a multimedia-rich tablet with a 10.1-inch touchscreen, powered by Android™ 4.1, Jelly Bean. The Excite 10 SE offers an affordable option for people looking for a powerful and versatile tablet for the home, starting at only $ 349.99 MSRP[i].


“Our Excite family of tablets continues to grow with options to suit a wide range of consumer needs, from portability and gaming to versatility and power,” said Carl Pinto, vice president of marketing of Toshiba America Information Systems, Inc., Digital Products Division. “We designed the Excite 10 SE to be a full featured tablet that offers a pure Android, Jelly Bean experience, while maintaining an attractive price point.”


The Excite 10 SE features Android 4.1, Jelly Bean, which improves on the simplicity and usability of Android 4.0. Moving between customizable home screens and switching between apps is effortless, while the Chrome™ browser and new Google Now intelligent personal assistant and Voice Search apps makes surfing the web fast and fluid.


Slim and light at only 0.4 inches thick and weighing 22.6 ounces[ii], the Excite 10 SE is encased with a textured Fusion Lattice finish, making it comfortable to hold and easy to carry. The tablet offers a vibrant 10.1-inch diagonal AutoBrite™ HD touchscreen display[iii] plus the NVIDIA® Tegra® 3 Super 4-PLUS-1™ quad-core processor[iv] that delivers smooth web browsing and outstanding performance for games, HD movies and more.


Stereo speakers with SRS® Premium Voice Pro create an optimized audio experience for music, video and games, while providing greater clarity for video chatting via the tablet’s HD front-facing camera. The Excite 10 SE also includes a 3 megapixel rear-facing camera with auto-focus and digital zoom for capturing HD video and photos. Featuring a wide range of connectivity, the tablet includes 802.11 b/g/n Wi-Fi®, Bluetooth® 3.0, as well as Micro SD and Micro USB ports for expandability. The tablet also charges conveniently via the Micro USB port.


Availability


The Excite 10 SE will be available starting at $ 349.99 MSRP for the 16GB model at select retailers and direct from Toshiba at ToshibaDirect.com on December 6, 2012.



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LeBron James wins Sports Illustrated annual award












(Reuters) – LeBron James of the Miami Heat was named as Sports Illustrated’s Sportsman of the Year for 2012, the U.S. magazine announced on Monday.


In an outstanding year, the 27-year-old James won his first NBA championship, his third league Most Valuable Player (MVP) award, was named MVP of the NBA finals and a won gold medal with the United States at the London Olympics.












He became just the sixth basketballer to win the award, which began in 1954. The most recent was his team-mate Dwyane Wade in 2006.


Two years ago, James became a hate figure for many American sports fans after he announced his decision to sign for Miami live on television after his contract with the Cleveland Cavaliers had expired.


He was booed at courts across the NBA and received intense criticism for his performance as Miami lost the 2011 NBA finals to the Dallas Mavericks.


“Did I think an award like this was possible two years ago? ‘No, I did not,” James said in an interview with the magazine.


“I thought I would be helping a lot of kids and raise $ 3 million by going on TV and saying, ‘Hey, I want to play for the Miami Heat.’ But it affected far more people than I imagined.


“I know it wasn’t on the level of an injury or an addiction, but it was something I had to recover from. I had to become a better person, a better player, a better father, a better friend, a better mentor and a better leader. I’ve changed, and I think people have started to understand who I really am.”


Previous winners of the award include swimmer Michael Phelps (2008), cyclist Lance Armstrong (2002) and golfer Tiger Woods (2000) while the first award was given to British athlete Roger Bannister in 1954 after he became the first person to run a mile in under four minutes.


(Reporting By Simon Evans; Editing by Julian Linden)


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U.S. court voids drug rep’s conviction, cites free speech












NEW YORK (Reuters) – A divided federal appeals court on Monday threw out the conviction of a sales representative for promoting off-label use of a prescription drug, a ruling that could make it harder for the government to police how drugs are marketed and sold.


The 2nd U.S. Circuit Court of Appeals in New York found that the sales representative’s free speech rights under the First Amendment had been violated.












“In the fields of medicine and public health, where information can save lives, it only furthers the public interest to ensure that decisions about the use of prescription drugs, including off-label usage, are intelligent and well-informed,” Circuit Judge Denny Chin wrote for a 2-1 majority.


The decision overturned the October 2008 conviction of Alfred Caronia, a sales representative for Orphan Medical Inc, now part of Jazz Pharmaceuticals Plc.


Using drugs “off-label” means that they are taken for conditions other than those for which they received U.S. Food and Drug Administration approval.


Many large healthcare settlements with the U.S. government have involved off-label promotions, including GlaxoSmithKline Plc’s $ 3 billion accord in July over several medicines, and Pfizer Inc’s $ 2.3 billion accord in 2009 over treatments such as the anti-inflammatory drug Bextra.


Matthew Bennett, vice-president of the Pharmaceutical Research and Manufacturers of America, an industry lobby, in a statement said the group was “pleased that the Second Circuit has recognized that the FDA‘s ability to regulate communication about medicines is circumscribed by the rights protected by the First Amendment.”


An FDA spokeswoman declined to comment. The U.S. Justice Department, which prosecuted Caronia, did not immediately respond to a request for comment.


CONSPIRACY CONVICTION


Caronia had appealed his conviction by a Brooklyn, New York, jury on one count of conspiracy for introducing a misbranded drug into interstate commerce, violating the federal Food, Drug & Cosmetic Act.


He was sentenced to one year of probation plus 100 hours of community service for the misdemeanor.


The drug was Xyrem, which won FDA approval in July 2002 to treat patients with narcolepsy, a condition associated with weak muscles, and in November 2005 to treat patients with excessive daytime sleepiness linked to narcolepsy.


Prosecutors said that in October 2005, prior to the second FDA approval, Caronia had improperly promoted Xyrem for “off-label” uses including excessive daytime sleepiness, muscle disorders, chronic pain and fatigue.


But Caronia said it should not be a crime for drug companies and sales representatives to truthfully promote FDA-approved drugs for legal, off-label uses when others, like doctors, may engage in such speech without penalty.


The 2nd Circuit agreed, noting that the U.S. Supreme Court had in 2011 found that speech that aided in drug marketing was a form of constitutionally protected expression.


Chin rejected the government’s contentions that restrictions were needed to stop the non-approved usage of drugs, and preserve the efficacy of the FDA drug approval process.


“The First Amendment directs us to be especially skeptical of regulations that seek to keep people in the dark for what the government perceives to be their own good,” Chin wrote.


Chin made clear in a footnote that off-label promotion that is false or misleading does not get First Amendment protection.


NO MORE GUESSWORK


Thomas Liotti, a lawyer for Caronia, welcomed the decision.


“If physicians can talk about alternative uses of drugs among themselves, it doesn’t seem to make any sense that others cannot,” he said in a phone interview.


He said the decision “increases the marketability of drugs, and means consumers can be fully informed by sales representatives, manufacturers and their own physicians.”


Chin was joined in the majority by Circuit Judge Reena Raggi.


Circuit Judge Debra Ann Livingston dissented. She called the case indistinguishable from a 2004 case in which a unanimous panel of the federal appeals court in Washington, D.C., including then-judge and current U.S. Chief Justice John Roberts, found no First Amendment protection.


“The majority calls into question the very foundations of our century-old system of drug regulation,” Livingston wrote. “I do not believe that the Supreme Court’s precedents compel such a result.”


The case is U.S. v. Caronia, 2nd U.S. Circuit Court of Appeals, No. 09-cr-5006.


(Reporting by Jonathan Stempel; Additional reporting by David Ingram in Washington, D.C.; Editing by Steve Orlofsky and Vicki Allen)


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Wall Street sours on weak domestic factory data












NEW YORK (Reuters) – Stocks struggled to extend the previous week’s gains, dropping on Monday as disappointing U.S. factory numbers dampened optimism about China‘s economic growth.


The declines broke a three-day streak of gains for the S&P 500, keeping it shy of its 50-day moving average of about 1,420, a level that the index has been below since October 22, and now serving as a key resistance point for investors.












Manufacturing activity in the United States surprisingly contracted in November, the Institute for Supply Management said, dropping to its lowest level in more than three years. Economic data has been mixed in recent months, fanning worries about the pace of growth at a time when investors are already concerned about the “fiscal cliff” issue in Washington.


The ISM number “was below expectations that were already conservative, and that puts an exclamation point on the concern many of us have about the cliff’s impact on the economy,” said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in New York.


Markets had opened higher as output by China’s factories grew in November for the first time in more than a year, data showed. Investors look to strength from China, the world’s second-largest economy, to offset weak growth in the United States and Europe.


Still, the fiscal cliff remains investors’ primary focus, with political haggling continuing over how to deal with large automatic spending cuts and tax hikes scheduled to kick in next year. The worry is that the combination of reduced spending and higher taxes could tip the U.S. economy back into recession.


While off its highs for the year, the S&P 500 is still up 12.1 percent for 2012.


“This could be the last opportunity for investors to take profits” after an unexpectedly strong year, said Grohowski, who helps oversee about $ 170 billion in assets.


Materials were the weakest sector on Monday, led lower by Newmont Mining after the company said its CEO resigned. Newmont’s stock fell 3 percent to $ 45.69. Dow component DuPont dropped 1.7 percent to $ 42.39. An S&P materials index <.GSPM> lost 1.8 percent.


The Dow Jones industrial average <.DJI> fell 59.98 points, or 0.46 percent, to 12,965.60 at the close. The Standard & Poor’s 500 Index <.SPX> declined 6.72 points, or 0.47 percent, to 1,409.46. The Nasdaq Composite Index <.IXIC> dropped 8.04 points, or 0.27 percent, to end at 3,002.20.


U.S. Treasury Secretary Timothy Geithner pushed Republicans on Sunday to offer specific ideas to cut the deficit. He predicted that they would agree to raise tax rates on the rich to obtain a year-end deal to avoid the fiscal cliff.


Among other factors serving to offset the ISM report on U.S. factories were two developments in the euro zone: Spain formally requested the disbursement of more than $ 50 billion of European funds to recapitalize its crippled banking sector, while Greece said it would spend 10 billion euros ($ 13 billion) to buy back bonds in a bid to reduce its ballooning debt.


The PHLX Europe sector index <.XEX> added 0.1 percent.


Dell shares gained 4.4 percent to $ 10.06. The stock was one of the biggest percentage gainers in both the S&P 500 and Nasdaq 100 <.NDX> after Goldman Sachs upgraded the stock to “buy” from “sell.


Advanced Micro Devices was the S&P’s top gainer, rising 7.3 percent to $ 2.36. Options traders appeared to be betting on further gains ahead. Early options order flow was focused on upside April calls, including a sweep of 3,594 April $ 3.50 strike calls for 16 cents per contract when the market was 14 cents to 16 cents, said WhatsTrading.com options strategist Frederic Ruffy.


Retail stocks were among the weakest of the day, with J.C. Penney Co off 3.2 percent at $ 17.36 and Staples Inc off 2.3 percent at $ 11.43. Consumer discretionary names tend to underperform during periods of economic uncertainty as consumers focus on core purchases.


Volume was light, with about 5.58 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, well below last year’s daily average of 7.84 billion.


Decliners outnumbered advancers on the NYSE by a ratio of 3 to 2, while on the Nasdaq, about 14 stocks fell for every 11 that rose.


(Additional reporting by Doris Frankel; Editing by Jan Paschal)


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Official: Syria moving chemical weapons components












WASHINGTON (AP) — U.S. and allied intelligence have detected Syrian movement of chemical weapons components in recent days, a senior U.S. defense official said Monday, as the Obama administration strongly warned the Assad regime against using them.


A senior defense official said intelligence officials have detected activity around more than one of Syria‘s chemical weapons sites in the last week. The defense official spoke on condition of anonymity because he was not authorized to speak publicly about intelligence matters.












Secretary of State Hillary Rodham Clinton, in Prague for meetings with Czech officials, reiterated President Barack Obama‘s declaration that Syrian action on chemical weapons was a “red line” for the United States that would prompt action.


“We have made our views very clear: This is a red line for the United States,” Clinton told reporters. “I’m not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say, we are certainly planning to take action if that eventuality were to occur.”


Syria said Monday it would not use chemical weapons against its own people. The Ministry of Foreign Affairs said Syria “would not use chemical weapons — if there are any — against its own people under any circumstances.”


Syria has been careful never to confirm that it has any chemical weapons.


The use of chemical weapons would be a major escalation in Assad’s crackdown on his foes and would draw international condemnation. In addition to causing mass deaths and horrific injuries to survivors, the regime’s willingness to use them would alarm much of the region, particularly neighboring states, including Israel.


At the White House, press secretary Jay Carney said, “We are concerned that in an increasingly beleaguered regime, having found its escalation of violence through conventional means inadequate, might be considering the use of chemical weapons against the Syrian people. And as the president has said, any use or proliferation of chemical weapons by the Syrian regime would cross a red line for the United States. “


Administration officials would not detail what that response might be.


Although Syria is one of only seven nations that have not signed the Chemical Weapons Treaty, it is a party to the 1925 Geneva Protocol that bans the use of chemical weapons in war. That treaty was signed in the aftermath of World War I, when the effects of the use of mustard gas and other chemical agents outraged much of the world.


Clinton didn’t address the issue of the fresh activity at Syrian chemical weapons depots, but insisted that Washington would address any threat that arises.


An administration official said the trigger for U.S. action of some kind is the use of chemical weapons or movement with the intent to use or provide them to a terrorist group like Hezbollah. The U.S. is trying to determine whether the recent movement detected in Syria falls into any of those categories, the official said. The administration official was speaking on condition of anonymity this person was not authorized to speak publicly about the issue.


The senior defense official said the U.S. does not believe that any Syrian action beyond the movement of components is imminent.


An Israeli official said if there is real movement on chemical weapons, it would require a response. He didn’t say what that might be and spoke on condition of anonymity pending a formal government response to the reports of the latest activities.


Israeli officials have repeatedly expressed concerns that Syrian chemical weapons could slip into the hands of Hezbollah or other anti-Israel groups, or even be fired toward Israel in an act of desperation by Syria.


Syria is believed to have several hundred ballistic surface-to-surface missiles capable of carrying chemical warheads.


Its arsenal is a particular threat to the American allies, Turkey and Israel, and Obama singled out the threat posed by the unconventional weapons earlier this year as a potential cause for deeper U.S. involvement in Syria’s civil war. Up to now, the United States has opposed military intervention or providing arms support to Syria’s rebels for fear of further militarizing a conflict that activists say has killed more than 40,000 people since March 2011.


Clinton said that while the actions of President Bashar Assad‘s government have been deplorable, chemical weapons would bring them to a new level.


“We once again issue a very strong warning to the Assad regime that their behavior is reprehensible, their actions against their own people have been tragic,” she said. “But there is no doubt that there’s a line between even the horrors that they’ve already inflicted on the Syrian people and moving to what would be an internationally condemned step of utilizing their chemical weapons.”


Activity has been detected before at Syrian weapons sites, believed to number several dozen.


Defense Secretary Leon Panetta said in late September the intelligence suggested the Syrian government had moved some of its chemical weapons in order to protect them. He said the U.S. believed that the main sites remained secure.


Asked Monday if they were still considered secure, Pentagon press secretary George Little declined to comment about any intelligence related to the weapons.


Senior lawmakers were notified last week that U.S. intelligence agencies had detected activity related to Syria’s chemical and biological weapons, said a U.S. intelligence official, speaking on condition of anonymity to discuss the closed-door meetings. All congressional committees with an interest in Syria, from the intelligence to the armed services committees, are now being kept informed.


“I can’t comment on these reports but I have been very concerned for some time now about Syria’s stockpiles of chemical weapons and its stocks of advanced conventional weapons like shoulder-launched anti-aircraft missiles,” said House intelligence committee Chairman Mike Rogers, R-Mich. “We are not doing enough to prepare for the collapse of the Assad regime, and the dangerous vacuum it will create. Use of chemical weapons by the Assad regime would be an extremely serious escalation that would demand decisive action from the rest of the world,” he added.


Syria is believed to have one of the world’s largest chemical weapons programs, and the Assad regime has said it might use the weapons against external threats, though not against Syrians. The U.S. and Jordan share the same concern about Syria’s chemical and biological weapons — that they could fall into the wrong hands should the regime in Syria collapse and lose control of them.


___


Klapper reported from Prague. Associated Press writers Josef Federman in Jerusalem, Albert Aji in Damascus and Matthew Lee, Kimberly Dozier, and Julie Pace in Washington contributed to this report.


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‘The Daily’ doomed by dull content and isolation












LOS ANGELES (AP) — It was too expensive. It lacked editorial focus. And for a digital publication, it was strangely cut off from the Internet. That’s the obituary being written in real time through posts, tweets and online chats about The Daily, the first-of-its-kind iPad newspaper that is being shut down this month.


Rupert Murdoch‘s News Corp. said Monday that The Daily will publish its final issue on Dec. 15, less than two years after its January 2011 launch. The app has already been removed from Apple’s iTunes, where it once received lukewarm ratings.












The Daily had roughly 100,000 subscribers who paid either 99 cents a week or $ 40 a year for its daily download of journalism tailored for touch screens. But that wasn’t enough to sustain some 100 employees and millions of dollars in losses since its launch. At the time of its debut, News Corp. said The Daily’s operating costs would amount to about half a million dollars a week, or around $ 26 million a year.


When News Corp. launched The Daily, it was touted as a bold experiment in new media. The company hired top-name journalists from other publications, such as the New York Post’s former Page Six editor, Richard Johnson, and said it poured $ 30 million into the newspaper’s launch. Now, the company is acknowledging that The Daily no longer has a place at News Corp., which is being split in two to separate its publishing enterprises from its TV and movie businesses.


Murdoch said in a statement that News Corp. “could not find a large enough audience quickly enough to convince us the business model was sustainable in the long-term.” Some employees are being hired in other parts of the company.


Critics say The Daily’s day-to-day mix of news, opinion and info-graphics wasn’t that different from content available for free on the Internet. And despite a high-profile launch that drew lots of media attention, the publication failed to build a distinctive brand. There was no ad campaign touting its coverage and stories weren’t accessible to non-subscribers, so it didn’t benefit from buzz that comes from social networks like Twitter and Facebook.


Trevor Butterworth, who wrote a weekly column for The Daily called “The Information Society,” says the disconnect between the app and the broader Internet curtailed its reach. He was laid off in July when the publication shrank from 170 workers to about 120. As part of the purge, The Daily cut its dedicated opinion section and dropped sports coverage in favor of using a feed from its News Corp. sister outfit, Fox Sports.


“Stories weren’t widely shared or widely known,” says Butterworth. “It felt like I was writing into the void.”


When it launched, The Daily was meant to take advantage of the explosion of tablet computer sales, and the notion that people generally read on them in the morning or evening, like a magazine.


But each issue came in a giant file — sometimes 1 gigabyte large — and took 10 or 15 minutes to download over a broadband connection, which is unheard of for news apps, says Matt Haughey, the founder of MetaFilter.com, one of the first community blogs on the Internet.


Because the stories weren’t linkable, The Daily didn’t benefit from new Internet traffic that would have come from content aggregators like Flipboard and Tumblr.


“They ignored the obvious, which was the Web,” Haughey says. Although many people are foregoing buying a laptop for the lightweight convenience of a tablet, the day hasn’t arrived yet when all online access will come through apps rather than the Web. “Maybe in five or 10 years, the Web will be less important,” he says. “For now it seems like they were missing out.”


It may also have been a problem that News Corp. launched The Daily from scratch into an environment where readers tend to gravitate toward trusted sources and established brands. According to a 2011 Pew Research Center survey, 84 percent of mobile device users said a news app’s brand was a major factor in deciding whether to download it.


One of the intangible challenges The Daily had was standing out in a sea of online journalism, both paid and free. Some national newspapers, such as The New York Times and The Wall Street Journal, have carved out a niche with informed coverage of sometimes complex topics and have gained paying digital subscribers by limiting the number of free articles they offer online.


Gannett Co., which publishes USA Today and about 80 other newspapers, has succeeded in raising circulation revenue at local papers by putting up so-called online “pay walls,” taking advantage of the fact that there are few alternative sources of coverage for certain communities.


Without a unique coverage niche or a local monopoly, The Daily was caught between two worlds.


By being digital-only, the publication didn’t have a defined coverage area. It was “in competition with everybody and everything,” says Joshua Benton, director of the Nieman Journalism Lab at Harvard University. Yet it failed to carve out its own niche in that larger universe, he says.


“Its lack of editorial focus played a role,” Benton notes. “It was sort of a pleasant, middle-brow, slightly tabloidy mix of news and features. And there’s lots of that available for free online. I would imagine if ‘The Daily’ were starting again now, they would invest more in establishing their brand identity early on.”


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