Games top App Store revenue in 2012

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One Direction, Rihanna, Adele lead Billboard 2012 charts

LOS ANGELES (Reuters) – Newcomer British boy band One Direction joined R&B diva Rihanna and British singer Adele to top Billboard‘s year-end music charts, released on Friday.

One Direction, who topped the Billboard 200 album chart twice this year with their debut, “Up All Night” in March and their sophomore album “Take Me Home” in November, were named Billboard‘s top new artist/group, rounding off a stellar year of U.S. success for the band.

Adele, 24, who became the first woman top score No. 1 single, album and artist on Billboard’s 2011 year-end charts, continued her reign in 2012, when her Grammy-winning record “21″ was the top-selling album in the U.S. and she was once again named artist of the year.

“21″ has sold more than 10 million copies in the U.S. since its release in February 2011, becoming a fixture on the Billboard 200, especially after Adele’s six wins at the Grammy Awards earlier this year.

She is the only act to be named both top artist and have the top album in Billboard’s charts for two years in a row.

Adele was also named the No. 1 female artist while R&B rapper-singer Drake was named No. 1 male artist and pop-rock band Maroon 5 were named No. 1 group.

Rihanna, also 24, was named the top Hot 100 artist after a year of chart-topping hit singles such as “We Found Love” and “Diamonds” on the Hot 100 chart, which measures top-selling singles each week.

But Australia’s Gotye picked up the Hot 100 single of the year, with his heartbreak hit “Somebody That I Used To Know.”

Billboard compile their end-of-year lists based on chart performances between December 3 2011 and November 24 2012, tallying data including album sales and streaming figures.

For more on Billboard’s year-end charts, visit http://www.billboard.com/news/the-best-of-2012-the-year-in-music-1008045682.story#

(Reporting By Piya Sinha-Roy, editing by Jill Serjeant and Andrew Hay)

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Venezuela furious at Obama’s comments on ailing Chavez

CARACAS (Reuters) – Venezuela‘s government reacted with fury on Friday to U.S. President Barack Obama‘s criticism of ailing Hugo Chavez‘s “authoritarian” government at a time of national anxiety over his battle to recover from cancer surgery.

In an interview with U.S. network Univision, Obama declined to speculate on the 58-year-old socialist president’s health in Cuba, where he is in a delicate state after his fourth operation since mid-2011 for cancer in his pelvic region.

But he did say U.S. policy was aimed at ensuring “freedom” in Venezuela. “The most important thing is to remember that the future of Venezuela should be in the hands of the Venezuelan people. We’ve seen from Chavez in the past authoritarian policies, suppression of dissent,” Obama said.

Those remarks went down badly with officials in Caracas where emotions are running high over the future of Chavez and his self-styled revolution in the South American OPEC nation.

In power since 1999, Chavez is due to start a new six-year term on January 10 after winning re-election just weeks before Obama did. His health crisis has thrown that into doubt, and Chavez has named a successor in case he is incapacitated.

“With these despicable comments at such a delicate moment for Venezuela, the U.S. president is responsible for a major deterioration in bilateral relations, proving the continuity of his policy of aggression and disrespect towards our country,” the Venezuelan government said in a statement.

‘SLOW’ RECOVERY, BUT SPEAKING

During his tumultuous rule, Chavez has gleefully assumed former Cuban leader Fidel Castro’s mantle as Washington’s main irritant in the region – though oil has continued to flow freely north to the benefit of both nations’ economies.

Adored by poor supporters for his charismatic style and channeling of oil revenue into a wide array of welfare projects, Chavez is regarded as a dictator by opponents who point to his often harsh treatment of political foes.

Officials said doctors had to use “corrective measures” on Chavez to stop unexpected bleeding caused during Tuesday’s six-hour operation, but that his condition had since improved.

“The patient is fulfilling his post-operation protocol satisfactorily, given the complexity of the surgery,” the latest Venezuelan government statement on his condition said. “Recovery has been slow but progressive,” it added, saying Chavez had communicated with relatives and sent greetings to Venezuelans.

Amid rumors Chavez had been unconscious since his operation, presidential press officer Teresa Maniglia indicated he had spoken for the first time on Friday. “‘How are my people?’ was the first thing Chavez said today when he spoke with his family for the first time,” she said via Twitter.

Chavez’s situation is being closely tracked around the region, especially among fellow leftist-run nations from Cuba to Bolivia which depend on his generous oil subsidies and other aid for their fragile economies.

“The president is battling hard – this time for his life, before it was for the Latin American fatherland,” said President Evo Morales of Bolivia, a Chavez friend and ally who announced he was flying to Havana overnight for an “emergency” visit.

“This is very painful for us.”

SPECULATION

Venezuela’s leader has not divulged details of the cancer that was first diagnosed in June 2011, sparking endless speculation among the country’s 29 million people and criticism from opposition leaders for lack of transparency.

“They’re hiding something, I think,” said 57-year-old housewife Alicia Marquina. “I’m not convinced by the announcements they’re making. I’m not a ‘chavista’, but neither am I cruel. I hope he does not suffer much and finds peace.”

If Chavez has to leave office, new elections must be held within 30 days. Chavez has named his vice president, Nicolas Maduro, a 50-year-old former bus driver and union leader, as his heir apparent.

Opposition flagbearer Henrique Capriles, who lost the presidential race against Chavez in October, is the favorite to face Maduro should a new vote be held, though first the governor of Miranda state must retain his post in local elections on Sunday.

“The regime change is already occurring,” Jefferies’ & Co. managing director Siobhan Morden said in one of numerous Wall Street analyses of events in Venezuela. “The question is whether the alternative is Chavista-light or the opposition.”

Even if he dies, Chavez is likely to cast a long shadow over Venezuela’s political landscape for years – not unlike Argentine leader Juan Peron, whose 1950s populism is still the ideological foundation of the country’s dominant political party.

There are parallels with the situation in Cuba too, where Chavez’s close friend and mentor, Fidel Castro, suffered a health downturn, underwent various operations in secret, then eventually handed over power to his brother Raul Castro.

(Additional reporting by Mario Naranjo and Eyanir Chinea in Caracas, Carlos Quiroga in La Paz; Editing by Paul Simao)

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Euro factory output pain eases

14 December 2012 Last updated at 05:43 ET

Markit’s senior economist Rob Dobson: “There’s some sign of light at the end of the tunnel”

The decline in the eurozone’s manufacturing sector has eased, a closely watched survey indicates, in a rare spot of good news for the region.

Markit’s eurozone manufacturing Purchasing Managers’ Index rose to 46.3 in December from 46.2 in November. A reading below 50 indicates contraction.

The research firm said the rate of decline in manufacturing “showed signs of moderating”.

But the service sector dropped to its weakest levels since July.

Including services and manufacturing, the eurozone PMI composite output index was at 47.3, up from 46.5 in November.

Return to growth?

“The eurozone downturn showed further signs of easing in December, adding to hopes that the outlook for next year is brightening,” said Chris Williamson, chief economist at Markit.

“A return to growth is looking like an increasing possibility in the first half of next year, barring any surprises, if the recent improvements in the survey data can be sustained. The turnaround is being led by Germany.”

Total output from Germany rose for the first time in eight months “though the increase was only very modest as an upturn in the service sector was offset by a faster decline in manufacturing production”, the survey said.

Output fell for the 10th month in a row in France. Earlier on Friday, Fitch kept the French government’s top AAA credit rating, making it the only major ratings agency left to say the country deserves to be among the world’s most creditworthy borrowers.

In the eurozone, only Germany still has an AAA rating from all three major ratings agencies.

Markit said that eurozone confidence remained lower than at any time since before the 2008-09 financial crisis.

Separately, a survey showed China’s huge manufacturing sector expanded in December at its fastest pace in 14 months as new orders and employment rose,

The HSBC PMI for December rose to 50.9, the highest level since October 2011. It was the fifth straight month of gains.

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NKorea rocket launch shows young leader as gambler

PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.

Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.

The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.

Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.

Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.

Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.

The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.

“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.

The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.

Top officials followed Kim in shrugging off international condemnation.

Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.

North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.

Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”

But it is the son who will bask in the glory, and face the international censure that may follow.

Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.

“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.

“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”

Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.

Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.

“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.

Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”

Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.

The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.

On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.

Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.

North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.

The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.

Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.

If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.

____

Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.

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U.S. drops China’s Taobao website from “notorious” list

WASHINGTON (Reuters) – The United States on Thursday dropped a website owned by China‘s largest e-commerce company, Alibaba Group, from its annual list of the world’s most “notorious markets” for sales of pirated and counterfeit goods.

Taobao Marketplace, an online shopping site similar to eBay and Amazon that brings together buyers and sellers, “has been removed from the 2012 List because it has undertaken notable efforts over the past year to work with rightholders directly or through their industry associations to clean up its site,” the U.S. Trade Representative‘s office said in the report.

The move came just before an annual high-level U.S.-China trade meeting next week in Washington.

Taobao Marketplace is China’s largest consumer-oriented e-commerce platform, with estimated market share of more than 70 percent. The website has nearly 500 million registered users, with more than 800 million product listings at any given time. Most of the users are in China, Hong Kong, Taiwan and Macao.

The U.S. Chamber of Commerce has called Taobao “one of the single largest online sources of counterfeits.”

The Chinese Commerce Ministry strongly objected to Taobao’s inclusion on the USTR’s 2011 notorious markets list. A ministry spokesman said it did not appear to be based on any “conclusive evidence or detailed analysis.

Alibaba hired former USTR General Counsel James Mendenhall to help persuade USTR to remove Taobao from its list.

The Chinese company’s bid to shed its “notorious” label won support from the Motion Picture Association of America, a former critic of Taobao, which praised its effort to reduce the availability of counterfeit goods on its website.

But U.S. software, clothing and shoe manufacturers urged USTR to keep Taobao on the list.

To stay off in the future, USTR urged “Taobao to further streamline procedures … for taking down listings of counterfeit and pirated goods and to continue its efforts to work with and achieve a satisfactory outcome with U.S. rights holders and industry associations.”

USTR said it also removed Chinese website Sogou from the notorious markets list, based on reports that it has made “notable efforts to work with rights holders to address the availability of infringing content on its site.”

U.S. concerns about widespread piracy and counterfeiting of American goods in China are expected to be high on the agenda at next week’s meeting in Washington of the U.S.-China Joint Commission on Commerce and Trade.

The 2012 notorious markets list includes Xunlei, which USTR described as a Chinese-based site that facilitates the downloading and distribution of pirated movies.

Baixe de Tudo, a website hosted in Sweden but targeted at the Brazilian market, was also put on the list along with the Chinese website Gougou.

Warez-bb, which USTR described as a hub for pre-release music, software and video games, was also included. The forum site is registered in Sweden but hosted by a Russian Internet service provider, USTR said.

The full report can be found on USTR’s website at: http://www.ustr.gov/sites/default/files/121312%20Notorious%20Markets%20List.pdf

(Reporting by Doug Palmer; Editing by Will Dunham, Dan Grebler and Jim Marshall)

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Actelion says FDA accepts lung drug for review

ZURICH (Reuters) – Biotechnology company Actelion said on Friday the U.S. health regulator accepted a submission on the company’s macitentan drug, meant to treat patients with a potentially life-threatening lung condition.

Actelion submitted the application for its drug for the treatment of pulmonary arterial hypertension, a condition characterized by abnormally high blood pressure in the arteries of the lungs, in October.

The Swiss company is banking on macitentan to replace Tracleer, which also treats pulmonary arterial hypertension (PAH) and currently accounts for around 90 percent of group sales, but goes off patent from 2015 and faces growing competition from U.S. rival Gilead’s Letairis.

The review period of the U.S. regulator, the Food and Drug Administration, is expected to last 12 months, Actelion said.

(Reporting by Martin de Sa’Pinto; Editing by Muralikumar Anantharaman)

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HMRC warns 300,000 late filers

13 December 2012 Last updated at 19:06 ET

About 300,000 people who have failed to send in their tax returns for 2010-11 could soon see their goods seized.

The taxman is sending warning letters to those who have now run up late-filing penalties of £1,300 for that year, under self-assessment.

They can still pay, or ask for the penalty to be taken off their income in 2013-14 if they are in the PAYE system.

The letters are part of a continuing campaign against a persistent minority of non-filers.

A spokesman for HM Revenue & Customs (HMRC) said the defaulters could still pay their fines, and submit the late tax returns.

“These non-filers have ignored numerous communications from HMRC, dating back to April 2011, including flyers, reminder letters, penalty notices and warning letters,” he said.

“A customer can still phone us if they think they should not be in self-assessment, and will be taken through a number of questions to indicate if they should be in self-assessment or not.

“If they shouldn’t have been in it for 2010-11, penalties will then be waived,” he added.

About 7,000 higher-rate taxpayers who had missed tax returns from earlier years were sent similar warning letters in October.

BBC News – Business

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Cuban lawmakers meet to consider economy, budget

HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.

Legislators are also to approve next year’s budget.

Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.

Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.

The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.

State-run media said Castro presided over Thursday’s session.

It was not open to international journalists.

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U.S. federal agency to test RIM’s BlackBerry 10

TORONTO (Reuters) – Research In Motion said a U.S. federal agency, which recently outlined plans to move away from BlackBerry in favor of Apple Inc’s iPhone, is now set to begin testing RIM‘s new BlackBerry 10 platform and devices.

The U.S. Immigration and Customs Enforcement agency (ICE), will early next year begin a pilot program on RIM’s new line of BlackBerry 10 smartphones and BlackBerry Enterprise Service 10 (BES 10), which allows corporations and government users to run the new devices on their networks, a RIM spokeswoman said late on Wednesday.

The news, which comes just as shares of the embattled company rallied to their highest close in seven months, signals that RIM’s BlackBerry 10 platform is gaining some traction ahead of its official launch next month.

RIM, a one-time pioneer in the smartphone industry, has lost market share in recent years to the iPhone and devices powered by Google Inc’s market-leading Android operating system, even among the business audience who once used BlackBerry devices exclusively.

Waterloo, Ontario-based RIM is now seeking to persuade both corporations and government users to stick with its smartphones, which have long been valued for their strong security features. It promises that its new line of devices, which will be powered by the BlackBerry 10 operating system, will be both smoother and faster than previous BlackBerry phones.

RIM is betting that these new devices – to be launched on January 30 – will revive its fortunes. But that may well depend to a large extent on the response from enterprise customers, many of whom have recently begun to flee to rival platforms.

ICE is one such example. The agency, in October, announced plans to end a long relationship with RIM, stating that its now aging line-up of BlackBerry devices could “no longer meet the mobile technology needs of the agency.

At the time, ICE outlined intentions to buy iPhones for more than 17,600 employees. It is not immediately clear whether the agency plans to revisit this plan or whether its intends to use RIM’s new BES 10 platform to manage both iPhones and BlackBerry devices. A spokeswoman for the agency was not immediately able to comment on the pilot program or the agency’s plans.

SHARES SURGE

The news comes soon after yet another rally in RIM shares on Wednesday, after Eric Jackson – a long-time bear on RIM’s stock – penned an opinion piece on his now bullish stance on the company.

Jackson, the founder of Ironfire Capital, in his piece, said parallels drawn by some analysts between RIM and its now-defunct rival Palm are flawed, as Palm never had the kind of installed subscriber base that RIM enjoys.

In his article, published on Wednesday on the TheStreet.com, Jackson contends that RIM’s new BlackBerry 10 devices have much better odds of success than Palm’s Pre device, which failed to capture a following despite positive reviews on the device and its operating system.

Jackson, who was short RIM’s stock for an extended period, argues that the positive sentiment building in RIM’s stock ahead of the launch of the make-or-break line of devices is unlikely to dissipate in a hurry, as a large portion of RIM’s 80 million subscribers are likely to upgrade to BB10 when the new devices are launched. Jackson said he now has a long position in RIM.

Shares in the company rose 5.6 percent to close at $ 13.31 on the Nasdaq – their highest close since May 1. Its Toronto-listed shares rose 5.8 percent to close at C$ 13.14.

The stock has more than doubled in price since September 24, when the shares were trading slightly above the $ 6 level in both New York and Toronto. The wave of optimism around BB10 has in recent weeks been bolstered by a number of analyst upgrades on the stock.

(Editing by Dan Grebler and Muralikumar Anantharaman)

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McAfee arrives in U.S. from Guatemala

MIAMI (Reuters) – Computer software pioneer John McAfee, who is wanted for questioning in Belize over the murder of a fellow American, arrived in Miami on Wednesday evening after he was deported by Guatemala, according to fellow passengers on an American Airlines flight.

After landing, McAfee, 67, was escorted from the plane by airport security officers, passengers said. Shortly afterward, he tweeted, “I am in South Beach,” referring to the popular tourist area on Miami Beach.

“Some people felt uncomfortable that he was on our flight. … We all knew the story,” said Maria Claridge, 36, a South Florida photographer who was on the Silicon Valley entrepreneur’s flight to Miami.

McAfee, who was seated in the coach section and had a whole row to himself, was wearing a suit and was “very calm” during the flight, she added.

“He looked very tired, he looked like a man who hadn’t slept in days. I’d say he even looked depressed,” said another passenger, Roberto Gilbert, a Guatemalan who lives in Miami.

McAfee had been held for a week in Guatemala, where he surfaced after evading police in Belize for nearly a month following the killing of American Gregory Faull, his neighbor on the Caribbean island of Ambergris Caye.

Police in Belize want to quiz McAfee as a “person of interest” in Faull’s death, although the technology guru’s lawyers blocked an attempt by Guatemala to send him back there.

Authorities in Belize say he is not a prime suspect in the investigation. McAfee has denied any role in Faull’s killing.

The goateed McAfee has led the world’s media on a game of online hide-and-seek in Belize and Guatemala since he fled after Faull’s death, peppering the Internet with pithy quotes and colorful revelations about his unpredictable life.

“I’m happy to be going home,” McAfee, dressed in a black suit, told reporters shortly before his departure from Guatemala City airport on Wednesday afternoon. “I’ve been running through jungles and rivers and oceans and I think I need to rest for a while. And I’ve been in jail for seven days.”

Guatemala’s immigration authorities had been holding McAfee since he was arrested last Wednesday for illegally entering the country with his 20-year-old Belizean girlfriend.

The eccentric tech pioneer, who made his fortune from the anti-virus software bearing his name, has been chronicling life on the run in a blog, www.whoismcafee.com.

He said he had no immediate plans after reaching Florida.

“I’m just going to hang in Miami for a while. I like Miami,” he told Reuters by telephone just before his plane left. “There is a great sushi place there and I really like sushi.”

BELIZE STILL WAITING

Residents of the Belizean island of Ambergris Caye, where McAfee has lived for about four years, said McAfee and Faull, 52, had quarreled at times, including over McAfee’s unruly dogs.

McAfee says Belize authorities will kill him if he turns himself in for questioning. He has said he was being persecuted by Belize’s ruling party for refusing to pay some $ 2 million in bribes.

Belize’s prime minister has rejected the allegations, calling McAfee paranoid and “bonkers.

Belize police spokesman Raphael Martinez said the country still wanted to question McAfee about the Faull case.

“He will be just under the goodwill of the United States of America. He is still a person of interest, but a U.S. national has been killed and he has been somewhat implicated in that murder. People want him to answer some questions,” he said.

Martinez noted that Belize’s extradition treaty with the United States extended only to suspected criminals, a designation that did not currently apply to McAfee.

“Right now, we don’t have enough information to change his status from person of interest to suspect,” he said.

Residents and neighbors on Ambergris Caye said McAfee was unusual and at times unstable. He was seen to travel with armed bodyguards, sporting a pistol tucked into his belt.

The predicament of McAfee, a former Lockheed systems consultant, is a far cry from his heyday in the late 1980s, when he started McAfee Associates. McAfee has no relationship now with the company, which was sold to Intel Corp.

McAfee was previously charged in Belize with possession of illegal firearms, and police had raided his property on suspicions that he was running a lab to produce illegal synthetic narcotics. He said he had not taken drugs since 1983.

“I took drugs constantly, 24 hours of the day. I took them for years and years. I was the worst drug abuser on the planet,” he told Reuters before his arrest in Guatemala. “Then I finally went to Alcoholics Anonymous, and that was the end of it.”

(Writing by Dave Graham, Michael O’Boyle and David Adams. Reporting by Sofia Menchu and Mike McDonald.; Editing by Peter Cooney)

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Obama backers turn from re-election to “fiscal cliff” fight

WASHINGTON (Reuters) – After a year of knocking on doors and working the phones to get President Barack Obama re-elected, Meechie Biggers had gotten over her fear of talking politics with strangers.

So when she came to Washington last week, the small-town real estate agent and a few like-minded Tennesseeans paid a visit to one of their Republican senators, Bob Corker, to try to persuade him to back Obama’s proposal to raise tax rates for the wealthy.

Biggers didn’t think she had much of a chance of changing his mind, and perhaps she didn’t. But four days later, Corker became the latest Republican to say his party should consider Obama’s proposed tax hike as part of a year-end budget deal.

“It’s a testament to knocking on doors and giving people your two cents,” Biggers said.

The election ended more than a month ago, but the campaign continues for many of the 2 million-plus foot soldiers who helped secure Obama’s second term.

Flush with victory, many volunteers and staffers are now mounting a grassroots effort to ensure that any deal that emerges from year-end “fiscal cliff” discussions includes a tax increase on the wealthiest households.

It’s an open question how many will stick with him if he is forced to consider cutting popular programs such as Medicare that enjoy broad support on the left.

But for now, it’s a chance to help Obama fulfill one of his central campaign promises – economic justice – and build on the momentum of his re-election. It also enables them to maintain friendships and a sense of purpose that were forged through the campaign.

“You can only go to so many celebrations, parties and lunches. And then you’re ready to help the president get done what he needs to get done,” said Lenda Sherrell, a retired accountant from Monteagle, Tennessee, who visited Corker along with Biggers.

The effort gives Obama added leverage in Washington at a time when many Republican allies are undergoing a painful re-examination in the wake of last month’s election.

Groups aligned with the conservative Tea Party movement, who pressed successfully for deep spending cuts in earlier budget fights, have been less visible in the fiscal-cliff battle, and business groups have pressed Republican lawmakers to abandon their no-tax-hike stance.

The grassroots pressure from the left could weaken Republicans’ resolve to hold the line against tax hikes, said Chris Arterton, a professor of political management at George Washington University. “It tends to take the wind out of their sails if their citizens are pushing in a direction that is absolutely contradictory to the politician’s views,” he said.

Corker’s office said he appreciates hearing from his constituents but he has not changed his view that increased tax revenue should come from eliminating deductions rather than raising rates.

The post-election effort stands in stark contrast to Obama’s first term, when officials did not keep his massive grassroots organization engaged in battles over spending, health care and climate change. This time around, campaign officials and liberal allies have made a concerted effort to harness the network for inside-the-Beltway policy battles.

ACTIVISTS INVITED TO WHITE HOUSE

One week after the election, Obama thanked 30,000 volunteers in a conference call and asked them to stay involved in the budget fight. Top activists such as Biggers and Sherrell have been invited to the White House for strategy and networking sessions.

Even as he tries to hammer out a deal with House of Representatives Speaker John Boehner, Obama has jetted to campaign-style rallies around the country to keep up the pressure. He has encouraged backers to send Twitter messages describing how they would be hurt by the automatic tax increases due to kick in if the fiscal cliff isn’t averted. On Monday, his campaign urged supporters in Republican congressional districts to call their lawmakers to support the tax hike.

Many of the volunteers and staffers who powered the campaign’s massive get-out-the-vote effort are continuing their work under the banner of The Action, a coalition of labor and liberal groups that launched three days after Obama’s November 6 victory.

As Obama’s Tennessee state director, Justin Wilkins steered volunteers in the deeply Republican state to phone banks and door-knocking efforts in more competitive states such as North Carolina. Now he is overseeing many of those same volunteers as part of The Action.

“Nobody had to be called. People literally came running,” he said.

Like both of Obama’s election campaigns, The Action combines cutting-edge digital tools with an emphasis on boots-on-the-ground action. A slick website directs supporters to events in their local area and provides the phone numbers of House lawmakers who have yet to back a legislative maneuver that would force a vote on Obama’s proposed tax hike in the Republican-controlled chamber. Backers can download distinctive yellow-and-black signs to wave at local rallies or post online.

Participants have spent the past month mounting demonstrations outside Republican lawmakers’ local offices and writing letters to local newspapers – a strategy designed to boost local news coverage and build public support for the tax hike.

Republicans have complained that the campaign-style tactics are complicating efforts to reach a deal. “A month after his re-election and weeks before the fiscal cliff, he’d still rather campaign than cooperate,” Senate Republican Leader Mitch McConnell said on Wednesday.

Public opinion polls show that a majority of Americans support the idea of raising taxes on the wealthiest 2 percent of U.S. households.

Volunteers see the fight as central to Obama’s prospects for a successful second term. Obama will have a tough time pursuing priorities like education without additional revenue, they say.

The Action’s narrow focus on raising taxes for the wealthy has allowed the coalition to avoid conflicts over other elements of the fiscal cliff fight that might prove more divisive, such as spending cuts or changes to popular entitlements such as Medicare and Social Security. Participants say they’re not sure whether the coalition will stay intact once the tax-hike battle is resolved.

“It’s relatively easy for the Democrats to coalesce around this, but there won’t be the same united front for the next issue,” said University of Michigan politics professor Michael Traugott.

Whether the coalition survives, many of those involved say they intend to keep up the effort to advance Obama’s agenda in the years to come.

“It was kind of a little bit scary to me to go knock on people’s doors and ask them their political stance, but I did it,” Biggers said.

“For me to go to somebody else and say, this is my opinion, do you want to hear it? That’s not me. But maybe it is now.”

(Reporting by Andy Sullivan. Editing by Fred Barbash, Mary Milliken and Lisa Shumaker.)

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Asian shares rise, yen slips after Fed’s stimulus steps

TOKYO (Reuters) – Asian shares extended gains for a seventh day on Thursday, after the U.S. Federal Reserve took new stimulus steps to bolster the economy, pressuring the yen with expectations the Japanese central bank will follow suit with more easing next week.

While stocks gained, oil and gold fell from post-Fed rallies, as investors took profits ahead of the year-end, and concerns over the U.S. budget impasse also weighed on sentiment.

The upside for equities was also contained despite the Fed‘s fresh dose of liquidity-pumping measures, as investors were worried the United States would miss a year-end deadline to avert the “fiscal cliff,” some $ 600 billion of tax hikes and spending cuts scheduled to start in January.

U.S. House of Representatives Speaker John Boehner said on Wednesday “serious differences” remain with President Barack Obama on the budget talks.

Failure to reach a compromise by the end of the year risks pushing the U.S. economy into recession and has stoked fears that a fragile recovery trend emerging in China and some other countries would be stifled.

Against this backdrop, European shares were expected to start narrowly mixed, with financial spreadbetters predicting London’s FTSE 100 <.ftse>, Paris’s CAC-40 <.fchi> and Frankfurt’s DAX <.gdaxi> will open flat to 0.2 percent higher. A 0.1 percent gain in U.S. stock futures hinted at a firm Wall Street open. <.l><.eu><.n></.n></.eu></.l></.gdaxi></.fchi></.ftse>

MSCI’s broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.3 percent to a 16-month peak, having hit successive 16-month highs since December 5. South Korean shares <.ks11> advanced 0.8 percent to a two-month high.</.ks11></.miapj0000pus>

“The Fed’s easing measures met the market’s expectations, while the setting of clear inflation and unemployment targets exceeded hopes and will clear uncertainty on the monetary front,” said Kim Yong-goo, an analyst at Samsung Securities.

The U.S. central bank committed to monthly purchases of $ 45 billion in Treasuries on top of the $ 40 billion per month in mortgage-backed bonds it started buying in September. But it also took the unprecedented step of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.

YEN WEAKNESS CONTINUES

The dollar advanced to its loftiest in nearly nine months against the yen, touching a high of 83.635 yen. The slumping yen boosted Japan’s Nikkei share average <.n225> up 1.6 percent and above 9,700 for the first time in eight months. <.t></.t></.n225>

Japan holds an election on Sunday, with opinion surveys showing conservative former Prime Minister Shinzo Abe‘s opposition Liberal Democratic Party and its smaller ally heading for a resounding victory.

Abe wants to step up aggressive monetary easing along with heavy public works spending, policy prescriptions dubbed “Abenomics” by the media, and while he threatens to curtail the Bank of Japan‘s independence, investors reckon the responsibility of power will prevent Abe taking excessive risks that could lead to a bond market meltdown.

“As the Fed sets direction on policy rates for the rest of central banks and equity markets, the Bank of Japan sets the currency vehicle, by stepping up asset purchases and driving down the yen once LDP Chief Abe becomes the likely PM at Sunday’s elections,” Ashraf Laidi, chief global strategist at City Index, said in a note to clients.

At its December 19-20 meeting, the BOJ is widely expected to further ease monetary policy to support its weak economy.

The Fed’s latest move to make the jobless rate a target for its monetary policy could have a longer-term implication on the BOJ.

“While the BOJ’s ultimate goal is to pull Japan out of deflation, the Fed’s latest move could prompt Japanese politicians or the government to urge the BOJ to also commit itself to growth, not just price stability,” said Chotaro Morita, chief fixed income strategist at Barclays.

Morita said that market consensus is for the BOJ to expand its asset-buying and lending program, currently at 91 trillion yen ($ 1.1 trillion), by another 5-10 trillion yen, and put off taking bolder steps until after a new cabinet is formed.

Rising U.S. Treasury bond yields also drew demand for the dollar against the yen, given the stable and low Japanese yields.

BETTER EUROPEAN NEWS

The euro was relatively more robust than the dollar and the yen, inching up 0.1 percent to $ 1.3082 to approach Wednesday’s high of $ 1.3098, as some positive news emerged.

Europe clinched a deal on Thursday to give the European Central Bank new powers to supervise euro zone banks, the first step in a new phase of closer integration to help underpin the single currency.

Greece’s foreign lenders welcomed a bond buyback, paving the way for Athens to get long-delayed aid to avoid bankruptcy.

In Italy, another debt-straddled euro zone country, Silvio Berlusconi offered to stand back and make way for Mario Monti as Italy’s next leader if the outgoing technocrat premier agreed to run as the candidate for a center-right coalition. Monti’s intention to resign has raised concerns that his austerity policies may not be carried out.

Oil prices retreated from overnight gains, with U.S. crude futures down 0.2 percent to $ 86.57 a barrel and Brent falling 0.2 percent to $ 109.24.

Gold tumbled more than 1 percent on stop-loss selling after touching their highest in nearly two weeks on Wednesday. Spot gold dropped as much as 1 percent to $ 1,693.80.

($ 1 = 82.9300 Japanese yen)

(Additional reporting by Somang Yang in Seoul; Editing by Jacqueline Wong)

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The Hobbit: Richard Armitage Talks Preparations For Playing Thorin Oakenshield

British actor Richard Armitage admitted it wasn’t a walk in the park to play a J.R.R. Tolkien character in Peter Jackson’s reimagining of “The Hobbit,” the first installment of which is on its way into theaters.

Upon touching down in New Zealand, where the trilogy was shot, the cast had a lot of character preparation to do.

PLAY IT NOW: Martin Freeman Discusses The Hobbit’s ‘Good Chemistry’ & Playing Bilbo Baggins

“We arrived in February 2011 and we went straight into a training program, which was called ‘Dwarf Bootcamp,’ which was literally boots — these huge boots. We learned how to walk, we wrestled with each other, we did archery together, we did sword fighting, hammer fighting, horse riding — everything you could possibly think of,” Richard, who plays Thorin Oakenshield in the film told Access Hollywood at the film’s junket.

In addition, the cast, which includes his former “Cold Feet” co-star James Nesbitt as Bofur, found ways to get to know each other better off set.

VIEW THE PHOTOS: The Hobbit: An Unexpected Journey — New York City Premiere

“We went round to each other’s houses and we cooked food together, we went to the pub and got drunk together, so there was an incredibly great bonding time between the dwarves,” he said.

Richard had plenty of experience sword fighting and horse riding in the BBC America series “Robin Hood,” but it was something else that came in handy during the long days on set.

“I’d done a number of shows where I’d had to use sword fighting and I’d also done horse riding. I’d also pulled guns out of my pocket. That was less useful,” he laughed, likely referring to his recent role in the PBS-import series “MI-5,” where he played a British spy. “But, yeah, you draw on everything. I’d worked at the Royal Shakespeare Company, so the vocal work was really useful to kind of pull that from there. I’d worked in a circus, there were… all sorts of things that were really useful, but the one thing that I do have — for lack of talent — is stamina and that’s the one thing I think everybody needed on this job.”

VIEW THE PHOTOS: Meet ‘The Hobbit’ Cast!

An imagination was useful also, but Richard said what turned out on the big screen was still wilder – and more beautiful – than he dreamed of.

“So many moments… Actually, apart from the eagles — which every single time I’ve seen this film absolutely blows my mind and I can barely keep the tears back and [it has] nothing to do with the pathos of the scene, just that feeling of flight moves me — is the throne of Aragorn, in the beginning of the prologue,” he told Access of the moment that moved him most. “When it got to [filming] that scene, I walked on and… it was just a green cross on the floor with a tiny green chair… [But in the film], they just made this incredible, almost space aged, sort of suspended seat in the middle of this stalagmite. It just blows my mind when I see that.”

VIEW THE PHOTOS: The Brit Pack: Hot Shots Of Stars From The UK!

“The Hobbit: An Unexpected Journey” hits theaters on December 14, 2012, followed by “The Hobbit: The Desolation of Smaug,” on December 13, 2013 and “The Hobbit: There and Back Again,” on July 18, 2014.

– Jolie Lash

Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Proper jailbreak for iOS 6 reportedly coming December 22nd

The speed at which a jailbreak for a new iOS device is released has slowed down considerably over the last few years. A tethered jailbreak  for devices running iOS 6 has been out September, but most people have been holding out for the untethered version – a hack that doesn’t erase everything upon reboot. A new jailbreak developer called “Dream JB” claims he will release a proper untethered jailbreak for devices running iOS 6 or 6.0.1 including the iPhone 5, iPad mini and iPad 4 on December 22nd. Dream JB also promises to release a video on Wednesday as proof. According to his website’s FAQ page, the jailbreak will be a one-click process and will differ from previous jailbreak methods in the past by using a prepared “Webkit exploit” and “userland exploit.” After it’s all done, Cydia, the App Store’s alternative for jailbroken smartphones, can be installed on the device. Unfortunately, the jailbreak won’t support Apple TV boxes.

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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%

12 December 2012 Last updated at 01:49 ET

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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Corruption probe shrouds Quebec in new darkness

MONTREAL (Reuters) – Half a century ago, a new crop of Quebec leaders sparked the so-called Quiet Revolution to eradicate the “Great Darkness” – decades of corruption that kept Canada‘s French-speaking province under the dominance of one party and the Catholic church.

The revolution’s reforms, including cleaning up the way lawmakers were elected and secularizing the education system, seemed to work, paving the way for decades of growth, progress and prominence as Canada emerged as a model of democracy.

Fifty years later, a public inquiry into corruption and government bid-rigging suggests the province’s politics are not as clean as Quebecers had hoped or believed.

Since May, when the inquiry opened in Montreal, Canadians have been getting daily doses of revelations of fraud through live broadcasts on French-language television stations. Corruption involving the Mafia, construction bosses and politicians, the inquiry has shown, drove up the average building cost of municipal contracts by more than 30 percent in Montreal, Canada’s second-largest city.

Last month, Montreal Mayor Gerald Tremblay resigned as did the mayor of nearby Laval, Gilles Vaillancourt. Both denied doing anything wrong, but said they could not govern amid the accusations of corruption involving rigging of municipal contracts, kickbacks from the contracts and illegal financing of elections.

Tremblay has not been charged by police. Vaillancourt’s homes and offices have been raided several times by Quebec’s anti-corruption squad, which operates independently of the inquiry, but no charges have been filed against him either. Police said the raids were part of an investigation but they would not release further details.

“Quebecers lived for several years under the impression that they had found the right formula, that their parties were clean,” said Pierre Martin, political science professor at the University of Montreal. Now, he said, “people at all levels are fed up.”

The inquiry must submit its final report to the Quebec government by next October. It has exposed practices worthy of a Hollywood noir thriller – a mob boss stuffing his socks with money, rigged construction contracts, call girls offered as gifts, and a party fundraiser with so much cash he could not close the door of his safe.

“Even though we are in the early days, what is emerging is a pretty troubling portrait of the way public contracts were awarded,” said Antonia Maioni, director of the McGill Institute for the Study of Canada in Montreal.

Quebec’s Liberals, the force behind the Quiet Revolution, launched the inquiry as rumors of corruption swirled. The government then called an election for September, a year ahead of schedule, in what was seen as an attempt to stop damaging testimony hurting its popularity.

The tactic did not help. Jean Charest’s Liberals lost to the Parti Quebecois, whose ultimate aim is to take the French-speaking province, the size of Western Europe, out of Canada.

‘IT WASN’T COMPLICATED’

According to allegations at the inquiry, the corruption helped three main entities: the construction bosses who colluded to bid on contracts, the Montreal Mafia dons who swooped in for their share, and the municipal politicians who received kickbacks to finance campaigns.

In Quebec, the Mafia has been dominated by the Rizzuto family, with tentacles to the rest of Canada and crime families in New York and abroad. But recently the syndicate has been facing challenges from other crime groups in Montreal, according to the Toronto-based Mafia analyst and author Antonio Nicaso.

The reputed godfather of the syndicate, Vito Rizzuto, has been subpoenaed to appear before the commission, but the date for his testimony has not been set.

The hearings have zeroed in on four construction bosses and how their companies worked with the Mafia, bribed municipal engineers and provided funds for mayoralty campaigns in Montreal, the business capital for Quebec’s 8 million people.

“It’s not good for the economy,” said Martin. “It’s not good for any kind of legitimate business that tries to enter into any kind of long-term relationship with the public sector.”

Quebec’s anti-corruption squad has arrested 35 people so far this year, staging well-publicized raids on mayoral offices and on construction and engineering companies. The squad has arrested civil servants and owners of construction companies, among others.

“I now must suffer an unbearable injustice,” Tremblay said in a somber resignation speech earlier this month after a decade as mayor of Montreal, saying he could not continue in office because the allegations of corruption were causing a paralysis at City Hall.

Some of the most explosive allegations at the inquiry, headed by Quebec Superior Court Justice France Charbonneau, came from Lino Zambito, owner of a now bankrupt construction company, and from a top worker for Tremblay’s political party, Union Montreal.

Zambito, who is seen as one of the smaller players and who also faces fraud charges, described a system of collusion between organized crime, business cartels and corrupt civil servants, with payments made according to a predetermined formula.

“The entrepreneurs made money, and there was an amount that was due to the Mafia,” Zambito told the inquiry. “It wasn’t complicated.”

Zambito said the Mafia got 2.5 percent of the value of a contract, 3 percent went to Union Montreal and 1 percent to the engineer tasked with inflating contract prices.

Tremblay did not respond to emails requesting comment on the allegations of corruption at city hall.

A former party organizer, Martin Dumont, alleged the mayor was aware of double bookkeeping used to hide illegal funding during a 2004 election.

Dumont said the mayor walked out of the room during a meeting that explained the double bookkeeping system, saying he did not want to know anything about it.

Dumont also described how he was called into the office of a fundraiser for Union Montreal to help close the door of a safe because it was too full of money.

“I think it was the largest amount I’d ever seen in my life,” Dumont said at the inquiry.

GOLF, HOCKEY, ESCORTS

The inquiry also saw videos linking construction company players with Mafia bosses. In one police surveillance video, a Mafia boss was seen stuffing cash into his socks.

A retired city of Montreal engineer, Gilles Surprenant, described how he first accepted a bribe in the late 1980s after being “intimidated” by a construction company owner. Over the years he said he accepted over $ 700,000 from the owners in return for inflating the price of the contracts.

Another retired engineer, Luc Leclerc, admitted to bagging half a million dollars for the same service. He said the system was well-known to many at city hall and simply part of the “business culture” in Montreal. He also got gifts and paid golf trips to the Caribbean with other businessmen and Mafia bosses.

Gilles Vezina, who is currently suspended from his job as a city engineer, concurred.

“It was part of our business relationships to get advantages like golf, hockey, Christmas gifts” from construction bosses, he told the inquiry in mid-November.

The gifts didn’t stop there. Vezina said he was twice offered the services of prostitutes from different construction bosses in the 1980s or early 1990s, which he said he refused.

The accusations are jarring for a country that prides itself on being one of the least corrupt places in the world, according to corruption watchdog Transparency International. But experts say corruption in Montreal was something of an open secret.

“The alarm signals have been going off here for 20 years and no one has done anything,” said Andre Cedilot, a former journalist who co-wrote a book on the Canadian Mafia.

Quebec’s new government has introduced legislation tasking the province’s securities regulator with vetting businesses vying for public contracts and allowing it to block companies that do not measure up.

Anti-corruption activist Jonathan Brun was not optimistic.

“You’ve got to use modern technology,” said Brun, a co-founder of Quebec Ouvert, a group that wants to make all information about contracts freely available rather than asking regulators to oversee individual companies. “You’ve got to change the entire system if you really want to fight corruption.”

(Writing by Russ Blinch; Editing by Janet Guttsman, Mary Milliken and Prudence Crowther)

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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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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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Obama met with Boehner on Sunday over fiscal cliff: aides

WASHINGTON (Reuters) – President Barack Obama met with Republican Speaker of the House of Representatives John Boehner on Sunday at the White House to negotiate ways to avoid the “fiscal cliff,” according to White House officials and a congressional aide.

The two sides declined to provide further details about the unannounced meeting. Obama and Boehner aides used the same language to describe it.

“This afternoon, the president and Speaker Boehner met at the White House to discuss efforts to resolve the fiscal cliff,” White House spokesman Josh Earnest said.

“We’re not reading out details of the conversation, but the lines of communication remain open,” he said.

An aide to Boehner emailed an identical quote.

The two sides are trying to reach an agreement that would stop automatic spending cuts and tax increases from going into effect at the beginning of the year. Analysts say if that so-called “fiscal cliff” occurs, the U.S. economy could swing back into a recession.

Obama has made clear he will not accept a deal unless tax rates for the wealthiest Americans rise. Boehner and many of his fellow Republicans say any tax increases would hurt a still fragile economy.

Last week Boehner and Obama spoke by phone, a conversation that the Republican leader described as pleasant but unproductive.

The common language used by both men’s aides suggests an agreement to keep details about their discussions private, which could help both of them sell less politically palatable aspects of an eventual deal to lawmakers in their respective parties.

(additional reporting by Rachelle Younglai; editing by Stacey Joyce)

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India’s Strange Obsession With Hitler

All that remains of the sign above the Hitler clothing store in Ahmedabad, India, is the swastika that used to dot its “i.” Citing cultural insensitivity, the municipality tore it down on Oct. 30 after the store’s owners refused to change it. Rajesh Shah, a co-owner of the shop, which opened in August, is flummoxed. “We are popular because of the name,” he says. “Our customers were not upset about the name. They said, ‘Don’t change it.’ Ahmedabadis like the name because they know Hitler [has not done] anything harmful to India.”

Lacking the sting of anti-Semitism but troubling nonetheless, the Hitler brand is gaining strength in India. Mein Kampf is a bestseller, and bossy people are often nicknamed Hitler on television and in movies.

In 2006 a cafe called Hitler’s Cross opened in Mumbai; in 2011 a pool hall named Hitler’s Den opened nearby in Nagpur. Owners of both say Hitler was a draw; the names were changed in the face of criticism from Jewish groups. (In Ahmedabad, store owner Shah says that only foreigners complained.)

Hero Hitler in Love, a Punjabi comedy about a man with an explosive temper, and the Hindi film Gandhi to Hitler, a sympathetic portrait of the dictator’s last days (Gandhi once wrote to the Führer), came out last year. A soap opera, Hitler Didi—or “big sister Hitler”—is a hit. Bal Thackeray, the leader of a far-right Hindu party who recently died, professed admiration for Hitler.

Unlike in some parts of Europe such as Russia and Austria, where Mein Kampf has been embraced by the extreme right, Hitler’s popularity in India is not the result of anti-Semitism, says Navras Jaat Aafreedi, a professor of social sciences at Gautam Buddha University in New Delhi. He says it stems from a dearth of European history classes in schools. To the extent that German history is taught, he says, it’s in the context of “the view that had Hitler not weakened the British Empire by the Second World War, the British would have never voluntarily left India.” The country’s Jewish community—some 5,300 people—is one of a few in the world to have never been persecuted by their countrymen, he says.

Solomon Sopher, president of the Baghdadi Jewish community in Mumbai, agrees: “We have never been persecuted by any caste or creed. Not even by the Muslims.” He adds that Indians are prone to “hero worship” of strong military leaders. “Lack of examples of strong leadership in India leads the Indian youth to admire Hitler,” explains Aafreedi.

That may explain why Mein Kampf, the dictator’s memoir, sells briskly in Mumbai and is printed by at least 13 publishers in India, according to Economic & Political Weekly. Mein Kampf is also becoming a must-read for some business schools applicants. “Each year, when I sit for admission interviews, there [are] books that are mentioned as favorite reads” by applicants, says Uma Narain, a professor at S.P. Jain Institute of Management & Research. “This year, many referred to Mein Kampf.” While Narain says she wouldn’t dream of teaching Mein Kampf, she can understand the lure of “the autobiographical account and political ideology of a charismatic man who supposedly got things done.”

Although Shah says the Hitler clothing store’s name was apolitical, he says the controversy has been good for business. He is petitioning the courts to reverse the decision to take the name down. “We’re going to fight for the name ‘Hitler,’ ” he says.

The bottom line: The popularity of Hitler is rising in India, reflecting the national attraction to strong leaders.

Shaftel is a Bloomberg Businessweek contributor.

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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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