BlackBerry maker wins vote of confidence ahead of BB10
















TORONTO (Reuters) – Research In Motion Ltd, for months enveloped by a wave of negative sentiment, got a boost on Tuesday when one of its most influential critics raised his rating on the stock ahead of the launch of RIM’s make-or-break new line of BlackBerry 10 devices.


The upgrade by Jefferies & Co analyst Peter Misek pushed RIM’s share price into double digits for the first time in five months, with the stock up more than 3 percent at $ 10.04 in early trading on the Nasdaq.













Misek based his more optimistic view of the BB10 launch, set for January 30, on a favorable reaction by telecom carriers to the devices and the new operating system that powers them.


“Preliminary results from our quarterly handset survey indicate developed market carriers have a much more positive view of BB10 than we expected,” Misek said in a note to clients.


Shares of Waterloo, Ontario-based RIM, a one-time leader in the smartphone industry, have plummeted in recent years as its aging line-up of devices lost ground to faster and snazzier devices from rivals. The company has bet its future on the new BB10.


RIM hopes BB10 smartphones will help claw back market share it has lost in recent years to Apple Inc’s iPhone and devices that run on Google Inc’s Android operating system.


Misek, who doubled his price target on shares of RIM to $ 10 from $ 5, also raised his rating on the stock to “hold” from “underperform”.


“With greater carrier shelf space and marketing support, we now believe BB10 has a 20 percent to 30 percent probability of success,” said Misek, who has long been skeptical of RIM’s odds of engineering a turnaround.


Misek cautioned that there is still downside if RIM’s gamble on BB10 fails, but he noted that the stock could be worth as much as $ 43 within the next 12 months if RIM’s bet pays off and its new operating system gets licensed by other handset makers.


RIM says its new devices will be faster and smoother and have a large catalog of applications, which are now critical to the success of any new line of smartphones. While feedback from both developers and carriers on the new devices has been largely upbeat, financial analysts have been much more circumspect about the company’s prospects.


Misek’s view is not shared by at least one of his counterparts.


In a note to clients on Monday, Pacific Crest analyst James Faucette reiterated his “underperform” rating on RIM’s shares. He said regardless of its quality, there is almost no chance that BB10 will meaningfully change RIM’s trajectory.


RIM shares were up 3.7 percent at $ 9.95 at midmorning on the Nasdaq, while its Toronto-listed shares rose 3.1 percent to C$ 9.89.


(Reporting by Euan Rocha; Editing by Jeffrey Benkoe; and Peter Galloway)


Wireless News Headlines – Yahoo! News



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One Direction’s 2nd CD hits No. 1, sells 540,000
















NEW YORK (AP) — One Direction‘s “Take Me Home” is the taking the boys to the top of the charts — and to new heights.


The group’s sophomore album has sold 540,000 in its first week, according to Nielsen SoundScan. It’s the year’s third-highest debut behind Taylor Swift‘s “Red,” which sold 1.2 million units its first week earlier this month, and Mumford & Sons’ “Babel,” which sold more than 600,000 albums in September in its debut week.













“We just want to say a massive thanks to all the fans who have supported us,” band member Harry Styles, 18, said in an interview Tuesday from London. “We can send tweets and thank them, but 140 characters is never going be enough to say how much it means.”


The album also debuted at No. 1 in the United Kingdom this week and is No. 1 in more than 30 countries, Columbia Records said Wednesday. The fivesome’s debut, “Up All Night,” came in at No. 2 in the United Kingdom last year; it was just released in March in America, where it hit No. 1 and has achieved platinum status.


“We were a little bit nervous about how people were going to take it,” 19-year-old Niall Horan said of the new album during tour rehearsals. “Everyone gets that second album syndrome.”


They say though they’re excited, they won’t be celebrating too much: “We’re finishing rehearsing soon and we’re going home to bed.”


One Direction, who placed third on the U.K. version of “The X Factor” in 2010, is signed to Simon Cowell’s Syco label imprint. In just a year, the band has become worldwide sensations, thanks to its feverish fans. They released a book and have a 3D movie planned. They also made the cut for Barbara Walters’ most fascinating people of 2012 list, which includes New Jersey Gov. Chris Christie and U.S. gold medalist Gabby Douglas.


One Direction says those experiences have helped the group mature.


“We’ve been working hard. We’re starting to grow up,” Horan said. “We’re still young, but we’ve passed the initial teenage years. …We’ve grown up quite quick in the job we have to do and we became a lot more independent.”


The group — which includes Zayn Malik, Liam Payne and Louis Tomlinson — will launch a worldwide tour in February. They hope to work with Katy Perry and are still trying to adjust to the celebrity and fame that has taken over their lives.


“I can see how it gets to people. I guess it’s quite easy to get wrapped up in it all,” Styles said. “We do the same things every other lad our age does. We go out, we have fun, we meet girls and stuff like that. Sometimes it gets written about, which, yeah, we think about it and it’s absolutely crazy. It’s still a bit weird thinking that that’s the way it is.”


___


Online:


http://www.onedirectionmusic.com/us/home/


___


Follow Music Mesfin on Twitter at http://twitter.com/MusicMesfin


Entertainment News Headlines – Yahoo! News



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Xoma’s drug combo lowers high blood pressure in late-stage study
















(Reuters) – Xoma Corp said its experimental combination of two drugs met the main goal of lowering hypertension better than a treatment based on either of the drugs alone in a late-stage study, sending the biotechnology company‘s shares up 6 percent.


The combination of perindopril arginine and amlodipine besylate showed statistically significant reduction in sitting systolic and diastolic blood pressure after six weeks of treatment, compared with either drugs alone, Xoma said.













The company is likely to file a new drug application for the combination in 2013, said RBC Capital Markets analyst Adnan Butt.


Xoma said it does not plan to market the product directly but intends to sublicense it to a third party.


“The next thing we expect is for the company to get a partnership for this drug. The terms could include an upfront payment and possible royalties on product sales,” Butt said.


He added that the result would be a modest positive but the key driver is the company’s experimental anti-inflammatory drug gevokizumab. The drug is being tested in a late-stage study for treatment of non-infectious uveitis, an inflammation of the middle layer of the eye.


Xoma’s partner, French pharmaceutical company Les Laboratoires Servier, already markets the combination under the trade name Coveram in 91 countries outside the United States.


Perindopril and amlodipine each target different cardiovascular functions and are, therefore, used in combination to treat high blood pressure, Xoma said. The company bought the rights to Servier’s perindopril franchise in January.


The combination was well tolerated in the trial, and there were no serious adverse events, Xoma said.


Shares of the company rose to $ 2.84 in extended trade. They closed nearly 3 percent higher at $ 2.68 on Tuesday on the Nasdaq.


(Reporting By Vrinda Manocha in Bangalore; Editing by Sriraj Kalluvila)


Medications/Drugs News Headlines – Yahoo! News



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Asian shares, euro fall on uncertainty over Greek bailout
















TOKYO (Reuters) – The euro skidded on Wednesday and Asian shares fell after European officials failed to reach a deal on another bailout for Greece, a day after Federal Reserve Chairman Ben Bernanke highlighted the dangers of a U.S. fiscal crisis.


U.S. stock futures eased 0.4 percent, pointing to a weak Wall Street open.













Financial spreadbetters predict London’s FTSE 100 <.FTSE>, Paris’s CAC-40 <.FCHI> and Frankfurt’s DAX <.GDAXI> would open down as much as 0.2 percent, following weakness in Asia. <.L> <.EU> <.N>


The euro slumped 0.5 percent to $ 1.2752, extending losses and retreating from Tuesday’s two-week high of $ 1.28295.


The euro’s decline lifted the dollar up 0.3 percent against a basket of key currencies <.DXY> and weighed on commodities such as gold, which eased 0.3 percent to $ 1,722.70 an ounce.


Euro zone finance ministers and Greece’s international lenders will gather again on Monday. Their meeting in Brussels ended on Wednesday without an agreement on the next tranche of loans to Greece, as they haggled over myriad options on how to bring the country’s debt down to a sustainable level, without which emergency aid cannot be disbursed to Athens.


“The euro is being sold because markets had believed the ministers would agree on aid for Greece at today’s meeting,” said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.


“Instead, a settlement is postponed, highlighting the difficulty of getting consensus on the debt crisis. But I feel this is a typical European political show and an agreement will be reached.”


The bearish news from Europe dragged down Asian shares, whose two-day rise had already been stalled after Bernanke on Tuesday repeated a warning that failure to avoid the $ 600 billion “fiscal cliff” in expiring tax cuts and government spending reductions could lead to recession in the United States.


The Fed chief said worries over how budget negotiations will be resolved were already damaging growth.


Concerns about the United States failing to raise its debt ceiling rattled financial markets in August 2011 and prompted Standard & Poor’s to cut the top-notch U.S. government bond rating for the first time ever.


“The price action suggests market participants are unclear of what to make of recent developments and therefore this warrants some caution,” said Stan Shamu, strategist at IG Markets.


But Hirokazu Yuihama, a senior strategist at Daiwa Securities, said that for all the concerns over the fiscal cliff, most of the market expected the U.S. Congress and White House to reach a compromise to avert the crisis.


MSCI’s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> slipped 0.2 percent. Hong Kong <.HSI> shares bucked the falling trend but pared earlier gains to rise 0.5 percent while Shanghai shares <.SSEC> inched up 0.3 percent.


Japan’s Nikkei stock average <.N225> closed up 0.9 percent at a two month-high as exporters were buoyed by a weaker yen.


The yen has come under pressure on expectations that a general election on December 16 will result in victory for an opposition leader who wants the Bank of Japan to aggressively ease monetary policy to stem the economy from further deterioration. <.T>


MACRO DATA EYED


Daiwa’s Yuihama said concerns over third-quarter earnings have subsided as most Asian companies had already reported results.


“This has prompted investors to turn to economic fundamentals. Signs of recovery in the U.S. and China are offering some assurances that the global economic slump may not be as severe as previously feared, even if growth remains fragile,” Yuihama said.


Investors will now focus on HSBC China flash PMI for November due on Thursday to see whether a low point for China, the world’s second largest economy, is over. U.S. manufacturing figures are due later on Wednesday while those from Europe are due on Thursday.


Trading activity was slowing ahead of the U.S. Thanksgiving long weekend.


Going into the holiday, the dollar has been underpinned broadly by data indicating a moderate U.S. recovery taking root, while the yen remained under pressure, with more data showing Japan‘s economy struggling.


Japan’s exports fell 6.5 percent in October from a year ago, dropping for a fifth consecutive month, weighed down by weakening global demand and a territorial row with China, its main customer.


In the U.S. on Tuesday, a report showed housing starts rose to the highest rate in more than four years in October.


The dollar rose to a 7-1/2-month high against the yen of 81.975 yen while the euro briefly touched a peak of 105.05 yen, its highest point since May 4.


A retreat in shares dragged oil lower, although prices remained supported by a lack of ceasefire between Israelis and Palestinians, which raised concerns about supply disruptions from the Middle East.


U.S. crude futures pared earlier gains and were up 0.1 percent to $ 86.85 a barrel by midafternoon, and Brent crude also trimmed earlier rises and was up 0.2 percent at $ 110.03.


Weak appetite for riskier assets also interest in Asian credit markets subdued, with the spreads on the iTraxx Asia ex-Japan investment-grade index tightening by 1 basis point.


(Additional reporting by Miranda Maxwell in Melbourne; Editing by Simon Cameron-Moore & Kim Coghill)


Business News Headlines – Yahoo! News



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AP Exclusive: Syrian rebels seize base, arms trove
















BASE OF THE 46TH REGIMENT, Syria (AP) — After a nearly two-month siege, Syrian rebels overwhelmed a large military base in the north of the country and made off with tanks, armored vehicles and truckloads of munitions that rebel leaders say will give them a boost in the fight against President Bashar Assad‘s army.


The rebel capture of the base of the Syrian army’s 46th Regiment is a sharp blow to the government’s efforts to roll back rebels gains and shows a rising level of organization among opposition forces.













More important than the base’s fall, however, are the weapons the rebels found inside.


At a rebel base where the much of the haul was taken after the weekend victory, rebel fighters unloaded half a dozen large trucks piled high with green boxes full of mortars, artillery shells, rockets and rifles taken from the base. Parked nearby were five tanks, two armored vehicles, two rocket launchers and two heavy-caliber artillery cannons.


Around 20 Syrian soldiers captured in the battle were put to work carrying munitions boxes, barefoot and stripped to the waist. Rebels refused to let reporters talk to them or see where they were being held.


“There has never been a battle before with this much booty,” said Gen. Ahmad al-Faj of the rebels Joint Command, a grouping of rebel brigades that was involved in the siege. Speaking on Monday at the rebel base, set up in a former customs office at Syria’s Bab al-Hawa border crossing with Turkey, he said the haul would be distributed among the brigades.


For months, Syria’s rebels have gradually been destroying government checkpoints and taking over towns in the northern provinces of Idlib and Aleppo along the Turkish border.


Rebel fighters say that weapons seized in such battles have been essential to their transformation from ragtag brigades into forces capable of challenging Assad’s professional army. Cross-border arms smuggling from Turkey and Iraq has also played a role, although the most common complaint among rebel fighters is that they lack ammunition and heavy weapons, munitions and anti-aircraft weapons to fight Assad’s air force.


It is unclear how many government bases the rebels have overrun during the 20-month conflict, mostly because they rarely try to hold captured facilities. Staying in the captured bases would make them sitting ducks for regime airstrikes.


“Their strategy is to hit and run,” said Elias Hanna, a retired Lebanese army general and Beirut-based strategic analyst. “They’re trying to hurt the regime where it hurts by bisecting and compartmentalizing Syria in order to dilute the regime’s power.”


The 46th Regiment was a major pillar of the government’s force near the northern city of Aleppo, Syria’s economic hub, and its fall cuts a major supply line to the regime’s army, Hanna said. Government forces have been battling rebels for months over control of Aleppo.


“It’s a tactical turning point that may lead to a strategic shift,” he said.


At the 46th Regiment’s base, about 25 kilometers (15 miles) west of Aleppo, the main three-story command building showed signs of the battle — its walls punctured apparently from rebel rocket attacks. The smaller barracks buildings scattered around the compound, about 2.6 square kilometers (1 square mile) in size, had been looted, with mattresses overturned. A number of buildings had been torched.


Reporters from The Associated Press who visited the base late Monday saw no trace of the government troops who had been defending it — other than the dead bodies of seven soldiers.


Two of them, in camouflage uniforms, lay outside the command building. One of them was missing his head, apparently blown off in an explosion.


The rest were in a nearby clinic. Four dead soldiers were on stretchers set on the floor, one with a large gash in his arm, another with what appeared to be a large shrapnel hole in the back of his head. The last lay on a gurney in another room, his arms and legs bandaged, a bullet hole in his cheek and a splatter of blood on the wall and ceiling behind him as if he had been shot where he lay.


It could not be determined how or when the soldiers had been killed.


The final assault that took the base came after more than 50 days of siege that left the soldiers inside demoralized, according to fighters who took part.


Working together and communicating by radio, a number of different rebels groups divided up the area surrounding the base and each cut the regime’s supply lines, said Abdullah Qadi, a rebel field commander. Over the course of the siege, dozens of soldiers defected, some telling the rebels that those inside were short of food, Qadi said.


The rebels decided to attack Saturday afternoon when they felt the soldiers inside were weak and the rebels had enough ammunition to finish the battle, Qadi said. The battle was over by nightfall on Sunday. Seven rebel fighters were killed in the battle, said al-Faj of the rebels’ Joint Command. Other rebel leaders gave similar numbers.


It remains unclear how many soldiers remained in the base when the rebels launched their attack and what happened to them.


Al-Faj said all soldiers inside were either killed or captured. He said he didn’t know how many were killed, but that the rebels had taken about 50 prisoners, all of whom would be tried in a rebel court. Aside from the 20 prisoners seen at the rebel’s Bab al-Hawa base, the AP was unable to see any other captured soldiers.


The Syrian government does not respond to requests for comment on military affairs and said nothing about the base’s capture. It says the rebels are terrorists backed by foreign powers that seek to destroy the country.


Disorganization has plagued the Syrian opposition since the start of the anti-Assad uprising in March 2011, with exile groups pleading for international help even when they have no control over those fighting inside of Syria.


A newly formed Syrian opposition coalition received a boost Tuesday, when Britain officially recognized it as the sole representative of the Syrian people.


The National Coalition of the Syrian Revolutionary and Opposition Forces was formed in the Gulf nation of Qatar on Oct. 11 under pressure from the United States for a stronger, more united opposition body to serve as a counterweight to more extremist forces.


British Foreign Secretary William Hague said Tuesday the body’s members gave assurances to be a “moderate political force committed to democracy” and that the West must “support them and deny space to extremist groups.”


The United States and the European Union have both spoken well of the body but stopped short of offering it full recognition.


Key to the body’s success will be its ability to build ties with the disparate rebel groups fighting inside Syria. Many rebel leaders say they don’t recognize the new body, and a group of extremist Islamist factions on Monday rejected it, announcing that they had formed an “Islamic state” in Aleppo.


Anti-regime activists say nearly 40,000 people have been killed since Syria’s crisis started 20 months ago.


___


Associated Press write Elizabeth Kennedy contributed reporting from Beirut, Lebanon.


Middle East News Headlines – Yahoo! News



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People turn to Twitter for CPR information: study
















(Reuters) – Amid snarky comments and links to cat videos, some Twitter users turn to the social network to find and post information on health issues like cardiac arrest and CPR, according to a U.S. study.


Over a month, researchers found 15,234 messages on Twitter that included specific information about resuscitation and cardiac arrest, said the study published in the journal Resuscitation.













“From a science standpoint, we wanted to know if we can reliably find information on a public health topic, or is (Twitter) just a place where people describe what they ate that day,” said Raina Merchant, the study’s lead author and a professor at the Department of Emergency Medicine at the University of Pennsylvania.


According to the researchers, they found people using Twitter to send and receive a wide variety of information on CPR and cardiac arrest, including their personal experiences, questions and current events.


Some researchers and organizations already use Twitter for public health matters, including tracking the 2009 H1N1 “swine flu” pandemic and finding the source of the Haitian cholera outbreak, the researchers said.


For the study, the researchers created a Twitter search for key terms, such as CPR, AED (automatic external defibrillators), resuscitation and sudden death.


Between April and May 2011, their search returned 62,163 tweets, which were whittled down to 15,324 messages that contained specific information about cardiac arrest and resuscitation.


Only 7 percent of the tweets were about specific cardiac arrest events, such as a user saying they just saw a man being resuscitated, or a user asking for prayers for a sick family member.


About 44 percent of the tweets were about performing CPR and using an AED. Those types of tweets included information on rules about keeping AEDs in businesses and questions about how to resuscitate a person.


The rest of the tweets were about education, research and news events, such as links to articles about celebrities going into cardiac arrest.


The vast majority of the Twitter users send fewer than three tweets about cardiac arrest or CPR throughout the month. Users that sent more tweets typically had more followers – people who subscribe to their messages – and often worked in a health-care related field.


About 13 percent of the tweets were re-sent, or retweeted, by other users. The most popular retweeted messages were about celebrity-related cardiac arrest news, such as an AED being used to revive a fan at a Lady Gaga concert.


“I think the pilot (study) illustrated for us that there is an opportunity to potentially provide research and information for people in real time about cardiac arrest and resuscitation,” Marchant said.


“I can imagine in the future we will see systems that would automatically respond to tweets of individual users. Twitter is a really powerful tool, and we’re just beginning to understand its abilities.”


SOURCE: http://bit.ly/T2bj7u


(Reporting from New York by Andrew Seaman at Reuters Health; editing by Elaine)


Internet News Headlines – Yahoo! News



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Pharmacies Dispense Meds Even After Docs Stop Prescription
















Image courtesy of iStockphoto/monkeybuisnessimages

When doctors take patients off of a prescription medicine, it is often for a good reason. But pharmacists don’t always get the memo. A new study finds that more than 1 in 100 discontinued prescriptions were filled by the pharmacy anyway, putting some patients at serious risk. In the U.S., pharmacists filled more than 3.7 trillion prescriptions in 2011. With so many prescriptions and refills–and our still largely human- and paper-based prescribing system–there are bound to be mistakes. Pharmacists may overlook drug interactions, dispense inappropriate medications, or commit other little-understood errors. One such underappreciated problem area is the process of taking patients off medication. While errors in initial prescribing have drawn much attention, potential for error when doctors order a prescription to stop also looms large. And electronic health records, which have helped to minimize medical errors in other areas, might be partly to blame. These electronic communiqu?s might be giving some doctors–and patients–a false sense of efficacy. Doctors might assume that when they make a note on a patient’s electronic health record to stop a prescription the pharmacy will automatically get the message as it does when they first prescribed that medication. This, however, is not always the case, wrote Adrienne Allen, of the North Shore Physician Group, and Thomas Sequist, of Brigham and Women’s Hospital in the new paper, published online November 19 in Annals of Internal Medicine. To find out how often the pharmacies continue to dispense meds the doctor no longer ordered, Allen and Sequist analyzed electronic health records of 30,406 adults in a Massachusetts health system whose doctor had discontinued a drug to treat a high-risk condition such as high cholesterol, hypertension, diabetes, blood coagulation or platelet aggregation. Some 83,900 medications were discontinued during the course of a year. Nevertheless, pharmacists still dispensed 1,218 of these prescriptions after they were discontinued. The most common drug that pharmacists dispensed after a doctor canceled the prescription was metoprolol (Lopressor or Toprol), which is often prescribed to treat high blood pressure after a heart attack and which can have harmful drug interactions with other commonly prescribed drugs. In a subset of medical records, a computer analysis flagged more than a third (34 percent) of the improper dispensations as creating a “high risk of potential adverse events” such as a harmful reaction, potential drug interaction or suspect lab test result, the researchers noted. And manual assessment verified that potential harm actually occurred in at least 12 percent of cases. Patients receiving these drugs were more likely to be taking more medications, older, enrolled in Medicare and black. Additional medications make it more likely that a patient will suffer an adverse drug interaction if they take an unintended prescription (especially if a doctor has subsequently prescribed a similar drug to take the discontinued drug’s place). And older adults might be less likely to notice a mistake. One limitation of the study is that the researchers could only study the 52 percent of discontinued prescriptions that were filled at participating health care system pharmacies; unaffiliated pharmacies might have even higher inappropriate dispensation rates. Additionally, the researchers only studied a limited number of drugs. Adding other drugs to the analysis would likely increase the number of discontinued prescriptions dispensed, even if the risk of side effects might be lower. They researchers see promise for filling this communication gap in the future. Electronic health records offer an opportunity to track these missteps, and adding more direct communication with pharmacies about prescription discontinuation should help avoid these errors. For now, however, the new technology is often not as powerful as many doctors think it is. So some of the responsibility will continue to lie with the patient. Officials would be wise to help “increase patient awareness of their medication list,” the researchers concluded. That is, until the computers can just do it for us.












Follow Scientific American on Twitter @SciAm and @SciamBlogs. Visit ScientificAmerican.com for the latest in science, health and technology news.
© 2012 ScientificAmerican.com. All rights reserved.


Seniors/Aging News Headlines – Yahoo! News



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Maybe Diamonds Aren’t Forever
















Ian Harebottle is looking for the next Marilyn Monroe. The chief executive officer of London-based Gemfields (GEM), the world’s largest producer of emeralds, says he’s seeking “an A-lister” who can do for the green gems what Monroe did for diamonds when she sang Diamonds Are a Girl’s Best Friend in Gentlemen Prefer Blondes. Monroe’s performance in the 1953 flick added extra sparkle to diamond sales.


Diamonds still dominate the $ 21 billion precious stone market, accounting for 90 percent of all sales, according to BMO Capital Markets (BMO). But for the first time in decades they have a little competition from the colored also-rans in the gem trade. Rarer than diamonds yet cheaper, emeralds, rubies, and sapphires are gaining favor just as sales for diamonds are beginning to show weakness. Polished diamond prices have fallen for five straight quarters as jewelry buyers in Asia and Europe become more cautious about luxury shopping, according to PolishedPrices.com. Uncut diamond prices are heading for their first annual decline since 2008, according to WWW International Diamond Consultants.













Colored gems’ rising popularity is starting to worry the diamond industry. “During the past three years these other gemstone categories have taken away yet another half percent from our market share,” Moti Ganz, president of the International Diamond Manufacturers Association, said in a speech at the World Diamond Congress on Oct. 15. As a result, colored stones are becoming more valuable. Prices for high-quality emeralds have soared more than tenfold in the past three years, according to Gemfields company filings. Cut rubies have risen in value 63 percent since 2005 and sapphires by 45 percent, according to Gemval, an online gem appraisal site.


cf2a4  comp gemspixcollage47 405 Maybe Diamonds Arent Forever


The reason for the shift in tastes is multifaceted. Colored stones are still less expensive, a plus for star-struck lovers on a budget during hard times. A 0.9-carat round diamond that’s internally flawless and of rare white color costs about $ 7,000, according to online retailer Blue Nile (NILE). A round emerald with “excellent clarity” of the same size costs about half as much, according to online vendor AfricaGems.


Some of the interest in colored stones is “celebrity driven,” says Caitlin Mociun, a Brooklyn-based jewelry designer. “One reason might be Kate Middleton having a sapphire engagement ring, or even BeyoncĂ© having a black diamond engagement ring. Those things, especially for a mass market, can definitely drive a trend.” Hollywood personality Jessica Simpson’s engagement ring sported two diamonds, but the ruby in its center got all the press and sparked numerous knockoffs. Halle Berry’s ring featured a 4-carat emerald that several celebrity magazines breathlessly announced came from “closed-down mines in Muzo, Colombia.” At a gem trade show in Hong Kong last year, Russell Shor, an analyst with the Gem Institute of America, immediately noticed the new interest in colored stones. “People were all of a sudden really hot to buy emeralds,” he says.


That may not be an accident. Harebottle, whose company produces about 20 percent of the world’s emeralds, is increasing Gemfields’ marketing budget, trying to exploit fissures in the diamond industry that until recent years was controlled by De Beers. Until the 1940s, the colored-stone market was about equal in size to the diamond industry. Then, in 1947, De Beers coined the slogan “A Diamond Is Forever,” later voted the best of the 20th century by Advertising Age. De Beers funded most of the marketing for the diamond industry through its generic marketing, similar to the dairy industry’s “Got Milk?” campaign. That changed in 2004 when De Beers’s monopoly ended after it pleaded guilty to price fixing in the U.S., concluding a 10-year legal battle. The diamond industry became chaotic and the amount spent on marketing plummeted, with De Beers cutting its ad budget in half, according to Stephen Lussier, the company’s executive director in London. The industry tried to reorganize in 2008 at a meeting in St. Petersburg, Russia, that led to the creation of the International Diamond Board. But members, including Russian state monopoly OAO Alrosa and mining giant Rio Tinto (RIO), failed to come to an agreement over how to fill the advertising void left by De Beers. “Not all people were willing to do their part,” says Lussier. “De Beers can do its part, but it alone is not enough.”


Anish Aggarwal, a partner at consulting firm Gemdax, says the diamond industry has had “four to five years without any real category marketing, and there are some markets that are suffering, such as Japan.” He adds that there’s “a danger of losing some of the cultural imperative.”


Even if Gemfields does find a modern Marilyn Monroe, it’s doubtful the company will ever be able to match De Beers’s old business model, in which a single firm mines, markets, and largely controls wholesale prices. Still, Harebottle has learned from the former monopoly’s experience. The colored-stone industry has traditionally been highly fragmented, divided up among many small, family-owned outfits. By bringing corporate heft to it, Harebottle hopes to boost supplies and raise prices at the same time. He aims to increase Gemfields’ share of the global emerald market to about 30 percent by expanding production at its African emerald and ruby mines. The company already owns 75 percent of the Kagem emerald mine in Zambia, the world’s largest, and controls 75 percent of the Montepuez ruby field in Mozambique.


De Beers still spends hundreds of millions of dollars a year on advertising, according to Lussier. But if Gemfields can demonstrate “clear industry leadership, they will have a chance” to capitalize on the diminished marketing power of diamonds, says Aggarwal of Gemdax.


Harebottle plans to boost his marketing budget to at least $ 4 million next year, up from just $ 150,000 in 2009. Next year’s budget will likely contain money for a celebrity endorser. Gemfields currently pays for about 70 percent of global emerald advertising, says Harebottle, but he doesn’t mind bearing the marketing cost for the entire colored- gems industry: “The fact that people free carry, I don’t mind—so long as it benefits us.”


The bottom line: Gemfields, the No. 1 emerald producer, is adding corporate heft to the colored-stone market, boosting its ad budget to $ 4 million.


With Caroline Winter


Businessweek.com — Top News



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Turbulence on Cuba-Italy flight leaves 30 bruised
















ROME (AP) — An airliner flying from Havana to Milan abruptly plunged some 1,000 meters (3,300 feet) when it hit unusually strong turbulence over the Atlantic on Monday, terrifying passengers and leaving some 30 people aboard with bruises and scrapes, airline officials said.


The flight continued to Milan’s Malpensa airport after the plane’s captain determined that it suffered no structural damage and two passengers who are physicians found no serious injuries, Giulio Buzzi, head of the pilots division at Neos Air, told Sky TG24 TV.













The ANSA news agency quoted bruised passenger Edoardo De Lucchi as saying meals were being served when suddenly there was “10 seconds of terror.” He recounted how plates went flying and some passengers not wearing seatbelts bounced about.


Buzzi had said that the drop measured some 3,000 meters (10,000 feet) in a cloudless sky. But Milan daily’s Corriere della Sera’s web site, quoting Neos official Davide Martini, later reported that the plane first bounced up some 500 meters (1,650 feet), then dropped some 1,000 meters (3,300 feet) to some 500 meters (1,650 feet) below the original altitude.


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Cisco to buy cloud-networking start-up Meraki for $1.2 billion
















(Reuters) – Networking equipment company Cisco Systems Inc said it will buy privately held cloud networking company Meraki for $ 1.2 billion in cash as part of its cloud and networking strategy.


Cisco said the acquisition of Meraki, which was founded in 2006 by members of MIT’s Laboratory for Computer Science, is expected to close in the second quarter of Cisco’s 2013 fiscal year and is subject to regulatory approval.













Cisco’s second quarter runs until the end of January.


Meraki – funded by Sequoia Capital and Google Inc – offers Wi-Fi technology, switching, security and mobile device management from the cloud with a focus on mid-sized businesses.


“This is a very logical move for Cisco,” said ZK research analyst Zeus Kerravala.


He said the deal will allow Cisco to offer alternative solutions to traditional Wi-Fi deployment models like smaller competitors, such as Aruba Networks and Ruckus Wireless, which debuted on Friday.


“Cisco didn’t really have anything to counter that before,” Kerravala noted.


Meraki’s Chief Executive Sanjit Biswas said in a letter to employees posted on the company website that Cisco had approached the company several weeks ago.


The company’s founders had at first rejected the offer in favor of continuing Meraki’s strategy aimed at an initial public listing.


“After several weeks of consideration, we decided late last week that joining Cisco was the right path for Meraki,” Biswas said.


He also said that Meraki had achieved a $ 100 million bookings run rate, grown to 330 employees and had a positive cash flow.


(Reporting by Nicola Leske, editing by Gary Crosse)


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