Chinese-American Faces Trial in China Over Business Dispute





BEIJING — As his family tells it, Vincent Wu is an industrious Chinese-American immigrant who sold his family’s suburban Los Angeles home to finance the construction of a shopping center in China he thought would allow him to retire early. To the police in Huizhou, a city in the southern province of Guangdong, Mr. Wu, 54, is a Mafia kingpin and illegal casino operator who dispatched his enemies through kidnapping, extortion and violence.




Whether an accurate depiction of Mr. Wu will emerge during a trial that begins Monday in Huizhou is anyone’s guess, although the 98 percent conviction rate enjoyed by Chinese prosecutors suggests that the defendant stands a slim chance of acquittal.


“It’s going to be a tough battle,” one of his lawyers, Wang Shihua, said Friday as he scrambled to sort through the 8,000 pages of evidence that the police had only recently delivered to Mr. Wu’s defense team. “At the very least, it’s going to be a very confrontational trial.”


That confrontation is likely to center on allegations that Mr. Wu was tortured into signing a confession, which is the crux of the case against him. In a deposition released by his lawyers, Mr. Wu says he was beaten while being hung upside down, deprived of food and water for several days and then given stimulants so he could not sleep. In the end, Mr. Wu says, he signed the declaration of guilt that was placed before him. “They pre-wrote everything,” he told his lawyers, according to the deposition. “If I didn’t sign it, they beat me.”


Mr. Wu’s case, human rights groups say, highlights the problems that even American citizens face in China’s flawed and deeply politicized criminal justice system. Although confessions extracted through torture are technically inadmissible in court, legal experts say the police frequently rely on heavy-handed tactics to win the confessions that often form the basis of convictions. “We’d be pleasantly surprised if the judge even allows the allegations of torture to be discussed in the courtroom,” said Roseann Rife, East Asia director for Amnesty International, which has been publicizing his case.


According to his family, powerful former business associates are behind Mr. Wu’s prosecution. They say one of them, Lin Qiang, a former provincial public security official, is seeking to claim his assets following a Chinese court ruling that favored Mr. Wu.


During an earlier entanglement with Mr. Lin in 2002, Mr. Wu says, he was detained by the police for 11 months, but later released after prosecutors decided that there was insufficient evidence to try him. His family said a ruling in February by the Supreme People’s Court vindicated Mr. Wu’s claims and cemented his ownership of the disputed property, a successful fruit market in the city of Foshan.


Mr. Lin could not be reached for comment, and police officials in Huizhou declined to comment. Kenny Wu, one of Mr. Wu’s sons, said in a phone interview that Mr. Lin warned his father that he would prevail in the end. “ ‘I control the laws in mainland China,’ ” Kenny Wu said Mr. Lin told his father. “ ‘Watch me put you back in prison like I did 10 years ago. Even President Obama and God cannot save you.’ ”


Mr. Wu was arrested in June; later that day, 300 police officers raided his still unfinished Lucky Star shopping center, detaining dozens of employees. After the police obtained incriminating statements against Mr. Wu, most of the detainees were released, although 33 other defendants face trial along with him.


American officials seeking to visit him in jail say they have been stymied because Mr. Wu did not use his American passport on his most recent visit to China from Hong Kong, the former British colony that enjoys some autonomy under Chinese law. Because he often drove between Guangdong and Hong Kong, where he lived before immigrating to the United States in 1993, Mr. Wu used his Hong Kong identification card to avoid the hassle of obtaining a Chinese visa for each border crossing, his family said. Under international law, the Chinese can restrict consular access to Mr. Wu based on the identification he used to enter China.


Shi Da contributed research.



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Massive PC, Console Game Discounts Ring in Holiday Season






Black Friday, the day right after Thanksgiving, is normally the day associated with electronics sales. And while the proponents of “Cyber Monday” and “Small Business Saturday” have tried to get in on the action, it’s still common knowledge that Thanksgiving weekend is the best time to upgrade your PC or console game arsenal. Right?


Not according to online game retailers. Discounts of up to 80 percent off a game’s retail price are taking place across the web, especially in online stores which offer games in the form of digital downloads (which cost nothing to make extra copies of). Here’s a look at just a few of the sales going on right now, for Windows and Linux PCs, Macs, game consoles, and mobile devices.






Steam (Windows, Linux, Mac)


The annual Steam Holiday Sale is under way, and it’s not just blowing hot air. Complete collections of every Steam game from publishers including Valve are on sale for around the price of one retail title, and individual games can be bought from each bundle for only a few dollars. Each day new sales are available, and most of them are massive, percentage-wise. They’re tied to a personal Steam account (which will always be linked to the original name they were created with), but can be bought as gifts for others.


Also check out: Amazon.com’s PC download sales, many of which are fulfilled through Steam and are discounted about as much. Amazon’s lineup also includes many casual games, of the “$ 10 store discount rack” variety.


Humble Indie Bundle 7 (Windows, Linux, Mac)


The Humble Bundle crew has been offering cross-platform, name-your-own-price bundles of indie games for several years now, and their seventh numbered offering is timed right for the holiday season. Bundles are giftable, the games can be played on Steam, and you can choose how much of your purchase price goes to game developers and how much goes to select charities.


PlayStation Network (PS3, PSP, Vita)


Console gamers aren’t being left out. The PSN Holiday Essentials sale is putting “more than 40 titles” on sale over the next three weeks, with a new selection available every week and even lower prices available to PlayStation Plus members.


Also check out: The Xbox Live Countdown to 2013 sale, with a “Daily Deal” every day until the end of the year.


Other sales


Game publishers SEGA and Square-Enix are discounting many of their most popular titles. SEGA’s holiday sale includes PSN, Xbox Live, Android and iOS titles, with most of its mobile games selling for $ 0.99. Meanwhile, the Square-Enix Winter of Mobile sale page lists huge discounts on iPhone and iPad games, while Android Police blogger Jeremiah Rice has put together a list of which Square-Enix Android games are on sale.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
Linux/Open Source News Headlines – Yahoo! News





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PEOPLE Remembers the American Soldiers Killed in Afghanistan

With the exit from Iraq and the draw-down of troops in Afghanistan, the numbers of Americans killed continues to drop.

Still, loved ones are mourning 311 lost, and as of Dec. 17, the wars' toll since 2001 now stands at 6,656.

Edward Joseph Acosta, 21
Trevor Brandon Adkins, 21
Ahmed Kousay al-Taie, 46 Erica Paige Alecksen, 21
Tobias Christoph Alexander, 30
Joseph James Altmann, 27
Mabry James Anders, 21
Joshua Ryan Ashley, 23
Bradley Wayne Atwell, 27

Daniel Benjamin Bartle, 27
Jon-Luke Bateman, 22
Jonathan Batista, 22
Rayvon Battle Jr., 25
Taylor John Baune, 21
Jordan Logan Bear, 25
Clayton Ross Beauchamp, 21
Genaro Bedoy, 20
Bryan Richard Bell, 23
Russell Ryan Bell, 37
Jose Oscar Belmontes, 28
Kenneth Wade Bennett, 26
Keith David Benson, 27
Richard Liam Berry, 27
Robert John Billings, 30
Christopher James Birdwell, 25
Jeremie Shane Border, 28
Christopher David Bordoni, 21
Joshua Alan Born, 25
Michael Cean Braden, 31
Mikayla Anne Bragg, 21
John R. Brainard III, 26
Sean Edward Brazas, 26
Andrew Trevor Britton-Mihalo, 25
Michael John Brodsky, 33
Christopher L. Brown, 26
Daniel Joseph Brown, 27
Milton W. Brown, 28
Gregory Thomas Buckley, 21
Antonio Carlos Burnside, 31
Thomas Jefferson Butler IV, 25
Brandon Lucas Buttry, 19

Gerardo Campos, 23
Shane William Cantu, 20
Daniel Lewis Carlson, 21
Sean Patrick Carson, 32
Roberto Cazarez, 24
Julian Clement Chase, 22
Nicolas D. Checque, 28
Gregory Lamont Childs, 38
Bruce Kevin Clark, 43
Junot M. L. Cochilus, 34
Kenneth Eldren Cochran, 20
Keaton Grant Coffey, 22
Julian Lee Colvin, 21
Timothy John Conrad Jr., 22
Gregory Todd Copes, 36
Cesar Cortez, 24
Niall William Cotisears, 23

Joseph D’Augustine, 29
Johnathon Frank Davis, 20
Nathan Tyler Davis, 20
Coater Bernard Debose, 55
Michael Robert Demarsico II, 20
Anthony Joseph Denier, 26
Leroy Deronde III, 22
Nicholas Michael Dickhut, 23
Scott Edward Dickinson, 29
Alex Frank Domion, 21
Curtis Joseph Duarte, 22
Michael Stephen Duskin, 42
James Evan Dutton, 25
Edward Joe Dycus, 22

Kevin Richard Ebbert, 32
Jason Kyle Edens, 22
Brandon Forrest Eggleston, 29
Vincent James Ellis, 22
Darrel Lynn Enos, 36
Richard Allen Essex, 23
Bobby Lee Estle, 38
Kyler Lavon Estrada, 21

Joseph Henry Fankhauser, 30
Aaron Matthew Faust, 22
Mathew Gregory Fazzari, 25
Patrick Delaney Feeks, 28
Arronn David Fields, 27
Krystal Marie Fitts, 26
Joseph Fitzmorris, 31
Thomas Kent Fogarty, 30
Nicholas Charles Fredsti, 30

Vilmar Galarza Hernandez, 21
Luis Antonio Oliver Galbreath, 41
Jonathan William Gifford, 34
Theodore Matthew Glende, 23
Jonathan Alan Gollnitz, 28
Moises Jesus Gonzalez, 29
Brandon Dwayne Goodine, 20
Brittany Bria Gordon, 24
Brett Edward Gornewicz, 27
Walter David Gray, 38
Kevin James Griffin, 45
Samuel Mark Griffith, 36
Jesse James Grindey, 30
Dustin Dean Gross, 19
Raul Madrigal Guerra, 37
Michael J. Guillory, 28

Ryan Preston Hall, 30
Carl Erik Hammar, 24
Shawn Thomas Hannon, 44
John Eric Hansen, 41
Justin Michael Hansen, 26
Jeremy Franklin Hardison, 23
Zachary Hayden Hargrove, 32
Aaron Arthur Henderson, 33
Alex Hernandez III, 21
Pernell Johnnie Herrera, 33
Channing Bo Hicks, 24
Darrion Terrell Hicks, 21
Tanner Stone Higgins, 23
Terence John Hildner, 49
Hunter Dalton Hogan, 21
Eric Scott Holman, 39
Patricia Lee Horne, 20
Brian Daniel Hornsby, 37
Justin Louis Horsley, 21
John Patrick Huling, 25

Francis Dee Imlay Jr., 31
Aaron Dale Istre, 37

Kedith Lamont Jacobs Jr., 21
Sean Robert Jacobs, 23
Jamie Darrell Jarboe, 27
Ryan Paul Jayne, 22
Ryan Jeschke, 31
David Andrew Johnson, 24
Donna Rae Johnson, 29
Nicholas Scott Johnson, 27
Payton Alexander Jones, 19
James Austin Justice, 21

Ramon Taisakan Kaipat, 22
Matthew Geoffrey Kantor, 22
Andrew James Keller, 22
Thomas Elliott Kennedy, 35
Kurt William Kern, 24
Richard James Kessler Jr., 47
Michael Joseph Knapp, 28
Jabraun Steven Knox, 23
Noah Mark Korte, 29
Suresh Niranjan Aba Krause, 29

Jarrod Allen Lallier, 20
Todd William Lambka, 25
Matthew John Leach, 29
Dick Alson Lee Jr., 31
Brian Jeffery Leonhardt, 21
Joseph Michael Lilly, 25
Darren M. Linde, 41
Daniel Lee Linnabary II, 23
Kevin E. Lipari, 39
Roberto Loeza Jr., 28
John Darin Loftis, 44
Joseph Daniel Logan, 22
Jesus Jonathan Lopez, 22
Conner Thomas Lowry, 24
Bryant Jordan Luxmore, 25

Bruce Andrew MacFarlane, 46
Thomas Raymond MacPherson, 26
Matthew Patrick Manoukian, 29
Robert Joseph Marchanti II, 48
Justin Cameron Marquez, 25
Chase Stone Marta, 24
Ethan Jacob Martin, 22
Alex Martinez, 21
Robert Anthony Massarelli, 32
Erik Nathaniel May, 26
Kyle Brenton McClain, 25
Philip Daine McGeath, 25
Nathan Ronald McHone, 29
Allen Robert McKenna Jr., 28
Barett Wambli McNabb, 33
Richard Lewis McNulty III, 22
John David Meador II, 36
Dale Wayne Means, 23
Kashif Mohammed Memon, 31
Michael Joseph Metcalf, 22
Daniel Thomas Metcalfe, 29
Jonathan Matthew Metzger, 32
Cale Clyde Miller, 23
Eugene Clifton Mills III, 21
Christopher Michael Monahan Jr., 25
Jose Luis Montenegro Jr., 31
Osbrany Montes De Oca, 20
Cody Otho Moosman, 24
Travis Alan Morgado, 25
Christopher E. Mosko, 28
Sky Russell Mote, 27
Christopher Lee Muniz, 24

Dustin Paul Napier, 20
Juan Pantoja Navarro, 23
Benjamin Harold Neal, 21
James Dominic Nehl, 37
Joshua Nathaniel Nelson, 22
Sapuro Brightley Nena, 25
David Paul Nowaczyk, 32
Israel Paul Nuanes, 38

Nicholas Henry Olivas, 20
Tyler J. Orgaard, 20
Kyle Bruce Osborn, 26
Jesse Aaron Ozbat, 28

Scott Patrick Pace, 39
Joshua Cole Pairsh, 29
Michael Jeremy Palacio, 23
Alejandro Jose Pardo, 21
Christopher Alexander Patterson, 20
Brandon Robert Pepper, 31
Sergio Eduardo Perez, 21
Trevor Adam Pinnick, 20
Benjamin Carlos Pleitez, 25
William Compton Poling Jr., 42
Paris Shawn Pough, 40
Alexander George Povilaitis Jr., 47
Stephen Chase Prasnicki, 24
John Castle Pratt, 51
Daniel Joseph Price, 27
Scott Eugene Pruitt, 38
Michael Wayne Pyron, 30

Christopher Keith Raible, 40
Thalia Suzanne Ramirez, 28
Ryan Davis Rawl, 30
Clovis Tim Ray, 34
Jerry Don Reed II, 30
Chad Robert Regelin, 24
Nicholas J. Reid, 26
Kevin James Reinhard, 25
Jose Joel Reyes, 24
Jeffrey Leon Rice, 24
Joseph Alvin Richardson, 23
Travis William Riddick, 40
Jeffrey James Rieck, 46
Michael Eugene Ristau, 25
Richard Anthony Rivera Jr., 20
Daquane Demetris Rivers, 21
Dion Rashun Roberts, 25
Leonard Robinson, 29
Daniel Anthony Rodriguez, 28
Jose Rodriguez, 22
Kyle Robert Rookey, 23
Adam Corey Ross, 19
Nicholas Jan Rozanski, 36
Clinton Keith Ruiz, 22
David E. Rylander, 23

Brenden Neal Salazar, 20
Christian Riley Sannicolas, 20
Ryan James Savard, 29
Philip Channing Sipe Schiller, 21
Joseph Lee Schiro, 27
Jonathan Philip Schmidt, 28
Julian Seiji Scholten, 26
Jacob Michael Schwallie, 22
Matthew Scott Schwartz, 34
Matthew Ryan Seidler, 24
Ricardo Seija, 31
Anthony Ramon Servin, 22
Dean Russell Shaffer, 23
Christopher Greg Singer, 23
Matthew Steven Sitton, 26
James Lyn Skalberg Jr., 25
Tyler James Smith, 24
Orion Nelson Sparks, 29
William Chapman Stacey, 23
Cameron James Stambaugh, 20
Trevor Jovanne Stanley, 22
Camella Marchett Steedley, 31
Riley Gene Stephens, 39
Steven Prince Stevens II, 23
Matthew Henrick Stiltz, 26
Jesse Wade Stites, 23
Michael Joseph Strachota, 28
Sean Patrick Sullivan, 40
Billy Albert Sutton, 42
Steven Gene Sutton, 24
Jason Michael Swindle, 24

Abraham Tarwoe, 25
Robert Joseph Tauteris Jr., 44
Tofiga Joshua Tautolo, 23
David Wayne Taylor, 20
Nicholas Andrew Taylor, 20
Alec Robert Terwiske, 21
Matthew Bradford Thomas, 30
Alejo Rene Thompson, 30
Joel Del Mundo Tiu, 48
Louis Ramon Torres, 23
Jon Ross Townsend, 19
Gregory Ray Trent, 38
Nelson D. Trent, 37
Neil Isaac Turner, 21

Jalfred David Vaquerano, 20
Manuel Joseph Vasquez, 22
Jorge Luis Velasquez, 35
Dain Taylor Venne, 29
Don Cayetano Viray, 25
Paul Clarke Voelke, 36

Brian Lloyd Walker, 25
Jonathan Patrick Walsh, 28
Eric Dean Warren, 23
David John Warsen, 27
Samuel Thomas Watts, 20
Dennis Paul Weichel Jr., 29
Jeffrey Lee White Jr., 21
Nicholas Schade Whitlock, 29
Justin Michael Whitmire, 20
Ronald Herbert Wildrick Jr., 30
Justin James Wilkens, 26
Clarence Williams III, 23
David Vincent Williams, 24
Eric Edward Williams, 27
Wesley R. Williams, 25
Ryan James Wilson, 26
Shane Gregory Wilson, 20
Wade Daniel Wilson, 22
William Robert Wilson III, 27
Jessica Marie Wing, 42
Benjamin Brian Wise, 34
Joshua Eli Witsman, 23
Chris John Workman, 33
Sterling William Wyatt, 21

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Wall Street Week Ahead: A lump of coal for "Fiscal Cliff-mas"

NEW YORK (Reuters) - Wall Street traders are going to have to pack their tablets and work computers in their holiday luggage after all.


A traditionally quiet week could become hellish for traders as politicians in Washington are likely to fall short of an agreement to deal with $600 billion in tax hikes and spending cuts due to kick in early next year. Many economists forecast that this "fiscal cliff" will push the economy into recession.


Thursday's debacle in the U.S. House of Representatives, where Speaker John Boehner failed to secure passage of his own bill that was meant to pressure President Obama and Senate Democrats, only added to worry that the protracted budget talks will stretch into 2013.


Still, the market remains resilient. Friday's decline on Wall Street, triggered by Boehner's fiasco, was not enough to prevent the S&P 500 from posting its best week in four.


"The markets have been sort of taking this in stride," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago, which has about $38 billion in assets under management.


"The markets still basically believe that something will be done," he said.


If something happens next week, it will come in a short time frame. Markets will be open for a half-day on Christmas Eve, when Congress will not be in session, and will close on Tuesday for Christmas. Wall Street will resume regular stock trading on Wednesday, but volume is expected to be light throughout the rest of the week with scores of market participants away on a holiday break.


For the week, the three major U.S. stock indexes posted gains, with the Dow Jones industrial average <.dji> up 0.4 percent, the S&P 500 <.spx> up 1.2 percent and the Nasdaq Composite Index <.ixic> up 1.7 percent.


Stocks also have booked solid gains for the year so far, with just five trading sessions left in 2012: The Dow has advanced 8 percent, while the S&P 500 has climbed 13.7 percent and the Nasdaq has jumped 16 percent.


IT COULD GET A LITTLE CRAZY


Equity volumes are expected to fall sharply next week. Last year, daily volume on each of the last five trading days dropped on average by about 49 percent, compared with the rest of 2011 - to just over 4 billion shares a day exchanging hands on the New York Stock Exchange, the Nasdaq and NYSE MKT in the final five sessions of the year from a 2011 daily average of 7.9 billion.


If the trend repeats, low volumes could generate a spike in volatility as traders keep track of any advance in the cliff talks in Washington.


"I'm guessing it's going to be a low volume week. There's not a whole lot other than the fiscal cliff that is going to continue to take the headlines," said Joe Bell, senior equity analyst at Schaeffer's Investment Research, in Cincinnati.


"A lot of people already have a foot out the door, and with the possibility of some market-moving news, you get the possibility of increased volatility."


Economic data would have to be way off the mark to move markets next week. But if the recent trend of better-than-expected economic data holds, stocks will have strong fundamental support that could prevent selling from getting overextended even as the fiscal cliff negotiations grind along.


Small and mid-cap stocks have outperformed their larger peers in the last couple of months, indicating a shift in investor sentiment toward the U.S. economy. The S&P MidCap 400 Index <.mid> overcame a technical level by confirming its close above 1,000 for a second week.


"We view the outperformance of the mid-caps and the break of that level as a strong sign for the overall market," Schaeffer's Bell said.


"Whenever you have flight to risk, it shows investors are beginning to have more of a risk appetite."


Evidence of that shift could be a spike in shares in the defense sector, expected to take a hit as defense spending is a key component of the budget talks.


The PHLX defense sector index <.dfx> hit a historic high on Thursday, and far outperformed the market on Friday with a dip of just 0.26 percent, while the three major U.S. stock indexes finished the day down about 1 percent.


Following a half-day on Wall Street on Monday ahead of the Christmas holiday, Wednesday will bring the S&P/Case-Shiller Home Price Index. It is expected to show a ninth-straight month of gains.


U.S. jobless claims on Thursday are seen roughly in line with the previous week's level, with the forecast at 360,000 new filings for unemployment insurance, compared with the previous week's 361,000.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)


(Reporting by Rodrigo Campos; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Obama Nominates Kerry for Secretary of State





WASHINGTON — President Obama nominated Senator John Kerry of Massachusetts as secretary of state, choosing an elder of the Democratic Party’s foreign policy establishment and a crucial political ally in the Senate to succeed Hillary Rodham Clinton.




“In a sense, John’s entire life has prepared him for this role,” Mr. Obama said, making the widely expected announcement at the White House. “He’s not going to need a lot of on-the-job training.”


With Mr. Kerry standing at his side, the president praised Mr. Kerry’s combat service in the Vietnam War and his three decades in the Senate, which Mr. Obama said had placed him at the heart of “every major foreign policy debate for the past 30 years.”


Mr. Kerry, the president said, had also earned the respect of his Senate colleagues and expressed confidence that he would be quickly confirmed. In recent weeks, Senator John McCain, the Arizona Republican, has jokingly referred to his colleague as “Mr. Secretary.”


Mr. Obama’s first choice for the job, Susan E. Rice, the ambassador to the United Nations, asked Mr. Obama to withdraw her name last week after Mr. McCain and other Republicans threatened to block her nomination because of statements she made after the lethal attack on the American mission in Benghazi, Libya.


In addition to Mr. Kerry’s foreign-policy credentials, Mr. Obama noted that he had supported the president’s political career at key moments — not least, he said, by inviting a “young Illinois state senator to address the Democratic National Convention in 2004.”


Mr. Kerry, 69, was his party’s presidential candidate in that election, losing to George W. Bush. He is chairman of the Senate Foreign Relations Committee and has carried out several diplomatic missions for the Obama administration, helping to persuade President Hamid Karzai of Afghanistan to agree to a runoff election in 2009. Early in the administration, he also tried to engage President Bashar al-Assad of Syria, who has waged a brutal crackdown on his own people as he fights to cling to power.


During the last campaign he also played the role of Mitt Romney in Mr. Obama’s debate preparations.


“Nothing brings two people closer together than two weeks of debate prep,” the president joked. “John, I’m looking forward to working with you rather than debating you.”


Mr. Kerry has long coveted the job of secretary of state.


Mrs. Clinton, who is recovering from the effects of a concussion, did not appear at the White House announcement.


“Hillary wanted very much to be here today, but she continues to recuperate,” the president said. “I had a chance to talk to her earlier today, and she is in good spirits and could not be more excited about the announcement that I’m making.”


Mr. Obama still has to fill two other key openings in his national security team, finding replacements for Secretary of Defense Leon E. Panetta, who intends to resign; and David H. Petraeus, director of the Central Intelligence Agency, who resigned in November because of an extramarital affair.


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RIM shares dive as fee changes catch market off guard






(Reuters) – Shares of BlackBerry maker Research In Motion Ltd dropped 20 percent on Friday on fears that a new fee structure for its high-margin services segment could put pressure on the business that has set the company apart from its competitors.


The shares were still more than 80 percent above the year’s low, which was hit in September. They started to rally in November as investors began to bet that RIM’s long-awaited new BlackBerry 10 phones, to be launched in January, would turn the company around.






The services segment has long been RIM’s most profitable and accounts for about a third of total revenue. Some analysts said there was a risk that the fee changes could endanger its service ecosystem and leave the Canadian company as just another handset maker.


The fee changes, which RIM announced on Thursday after the close, overshadowed stronger-than-expected quarterly results. The company said the new pricing structure would be introduced with the BlackBerry 10 launch, expected on January 30.


RIM said some subscribers would continue to pay for enhanced services such as advanced security. But under the new structure, some other services would account for less revenue, or even none at all.


Chief Executive Thorsten Heins tried to reassure investors in a television interview with CNBC on Friday, saying RIM’s “service revenue isn’t going away”.


He added: “We’re not stopping. We’re not halting. We’re transitioning.”


Since taking over at RIM in January, Heins has focused on shrinking the company and getting it ready to introduce its new BB10 devices, which RIM says will help it claw back ground it has lost to competitors such as Apple Inc and Samsung Electronics.


But the news of the new services pricing strategy came as a shock to markets, and some analysts cut their price targets on RIM stock.


RIM will not be able to sustain profitability by relying on its hardware business alone, said National Bank Financial analyst Kris Thompson, whom Thomson Reuters StarMine has rated the top RIM analyst based on the accuracy of his estimates of the company’s earnings.


Thompson downgraded RIM’s stock to “underperform” from “sector perform” and cut his price target to $ 10 from $ 15.


Forrester Research analyst Charles Golvin said the move was likely about stabilizing market share: “At the moment, they need to stem the bleeding.”


He said the tiered pricing might line up better with RIM’s subscriber base as it expands in emerging economies.


RIM’s Nasdaq-listed shares were down 19.8 percent at $ 11.32 on Friday afternoon. The stock was down 19.6 percent to C$ 11.21 on the Toronto Stock Exchange.


COUNTDOWN TO LAUNCH


The success of the BB10 will be crucial to the future of RIM, which on Thursday posted its first-ever decline in total subscribers. Heins said on CNBC that the company expected to ship millions of the new devices.


He cautioned that this will require heavy investment, which will reduce RIM’s cash position in its fourth and first quarters from $ 2.9 billion in its fiscal third quarter. He said, however, it would not go below $ 2 billion.


Still, doubts remain about whether RIM can pull off the transformation. Needham analyst Charlie Wolf said the BB10 would have to look meaningfully superior to its competitors for RIM to stage a comeback.


Canaccord Genuity analyst Michael Walkley said it was highly unlikely that the market would support RIM’s new mobile computing ecosystem, and he remained skeptical about the company’s ability to survive on its own.


“We believe RIM will eventually need to sell the company,” said Walkley, who cut his price target on RIM shares to $ 9 from $ 10.


Baird Equity Research analysts said BB10 faced a daunting uphill battle against products from Apple, as well as those using Google Inc’s Android operating system, and, increasingly, phones with Microsoft Corp’s Windows 8 operating system.


Baird maintained its “underperform” rating on the stock, while Paradigm Capital downgraded the shares to “hold” from “buy” on uncertainty around the services revenue model.


“RIM has gone from having one major aspect of uncertainty – BlackBerry 10 adoption – to two, given an uncertain floor on services revenue,” William Blair analyst Anil Doradla said.


RIM will have to discount BB10 devices significantly to maintain demand, Bernstein analyst Pierre Ferragu said.


The BlackBerry, however, still offers the security features that helped it build its reputation with big business and government, a selling point with some key customers.


Credit Suisse maintained its “neutral” rating on the stock, but not because it expected BB10 to be a big success.


“Only the potential for an outright sale of the company or a breakup keeps us at a neutral,” Credit Suisse analysts said.


Separately on Friday, ailing Finnish mobile phone maker Nokia said it had settled its patent dispute with RIM in return for payments. Nokia did not disclose detailed terms, but said the deal included a one-time payment to be booked in the fourth quarter, as well as ongoing fees, all to be paid by RIM. [ID:nL5E8NL22K]


($ 1=$ 0.98 Canadian)


(Reporting by Chandni Doulatramani in Bangalore and Allison Martell in Toronto. Additional reporting by Sinead Carew in New York; Editing by Ted Kerr, Dale Hudson, Janet Guttsman,; Lisa Von Ahn and Peter Galloway)


Wireless News Headlines – Yahoo! News





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Zoë Saldana's Early Christmas Gift: A New Rescue Dog!















12/21/2012 at 02:30 PM EST







Zoe Saldana and her new dog Mugsy


Courtesy Zoe Saldana. Inset: Tony DiMaio/startraks


Christmas has come a few days early for Zoë Saldana.

The actress has received a gift in the form of a little white rescue pup that she adopted just days before the holiday.

"Meet Mugsy!!! Rescued her last week – my best friend named her – ha! She's adorable and super smart," Saldana Tweeted Thursday, with a photo of the wiry-haired pooch sitting in the passenger's seat of a car.

Perhaps spending timing with her boyfriend Bradley Cooper's dog Charlotte is what persuaded the The Words star to adopt a furry friend of her own. Saldana spent Thanksgiving walking outdoors with the white chow/retriever mix, who is definitely one of the leading ladies in Cooper's life.

"She has to like my dogs," The Hangover star told PEOPLE in 2009 of what he looks for in a potential girlfriend. "My dogs and I come in a package."

Here's hoping Charlotte and Mugsy have already hit it off!

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AP IMPACT: Big Pharma cashes in on HGH abuse


A federal crackdown on illicit foreign supplies of human growth hormone has failed to stop rampant misuse, and instead has driven record sales of the drug by some of the world's biggest pharmaceutical companies, an Associated Press investigation shows.


The crackdown, which began in 2006, reduced the illegal flow of unregulated supplies from China, India and Mexico.


But since then, Big Pharma has been satisfying the steady desires of U.S. users and abusers, including many who take the drug in the false hope of delaying the effects of aging.


From 2005 to 2011, inflation-adjusted sales of HGH were up 69 percent, according to an AP analysis of pharmaceutical company data collected by the research firm IMS Health. Sales of the average prescription drug rose just 12 percent in that same period.


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EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.


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Unlike other prescription drugs, HGH may be prescribed only for specific uses. U.S. sales are limited by law to treat a rare growth defect in children and a handful of uncommon conditions like short bowel syndrome or Prader-Willi syndrome, a congenital disease that causes reduced muscle tone and a lack of hormones in sex glands.


The AP analysis, supplemented by interviews with experts, shows too many sales and too many prescriptions for the number of people known to be suffering from those ailments. At least half of last year's sales likely went to patients not legally allowed to get the drug. And U.S. pharmacies processed nearly double the expected number of prescriptions.


Peddled as an elixir of life capable of turning middle-aged bodies into lean machines, HGH — a synthesized form of the growth hormone made naturally by the human pituitary gland — winds up in the eager hands of affluent, aging users who hope to slow or even reverse the aging process.


Experts say these folks don't need the drug, and may be harmed by it. The supposed fountain-of-youth medicine can cause enlargement of breast tissue, carpal tunnel syndrome and swelling of hands and feet. Ironically, it also can contribute to aging ailments like heart disease and Type 2 diabetes.


Others in the medical establishment also are taking a fat piece of the profits — doctors who fudge prescriptions, as well as pharmacists and distributors who are content to look the other way. HGH also is sold directly without prescriptions, as new-age snake oil, to patients at anti-aging clinics that operate more like automated drug mills.


Years of raids, sports scandals and media attention haven't stopped major drugmakers from selling a whopping $1.4 billion worth of HGH in the U.S. last year. That's more than industry-wide annual gross sales for penicillin or prescription allergy medicine. Anti-aging HGH regimens vary greatly, with a yearly cost typically ranging from $6,000 to $12,000 for three to six self-injections per week.


Across the U.S., the medication is often dispensed through prescriptions based on improper diagnoses, carefully crafted to exploit wiggle room in the law restricting use of HGH, the AP found.


HGH is often promoted on the Internet with the same kind of before-and-after photos found in miracle diet ads, along with wildly hyped claims of rapid muscle growth, loss of fat, greater vigor, and other exaggerated benefits to adults far beyond their physical prime. Sales also are driven by the personal endorsement of celebrities such as actress Suzanne Somers.


Pharmacies that once risked prosecution for using unauthorized, foreign HGH — improperly labeled as raw pharmaceutical ingredients and smuggled across the border — now simply dispense name brands, often for the same banned uses. And usually with impunity.


Eight companies have been granted permission to market HGH by the U.S. Food and Drug Administration, which reviews the benefits and risks of new drug products. By contrast, three companies are approved for the diabetes drug insulin.


The No. 1 maker, Roche subsidiary Genentech, had nearly $400 million in HGH sales in the U.S. last year, up an inflation-adjusted two-thirds from 2005. Pfizer and Eli Lilly were second and third with $300 million and $220 million in sales, respectively, according to IMS Health. Pfizer now gets more revenue from its HGH brand, Genotropin, than from Zoloft, its well-known depression medicine that lost patent protection.


On their face, the numbers make no sense to the recognized hormone doctors known as endocrinologists who provide legitimate HGH treatment to a small number of patients.


Endocrinologists estimate there are fewer than 45,000 U.S. patients who might legitimately take HGH. They would be expected to use roughly 180,000 prescriptions or refills each year, given that typical patients get three months' worth of HGH at a time, according to doctors and distributors.


Yet U.S. pharmacies last year supplied almost twice that much HGH — 340,000 orders — according to AP's analysis of IMS Health data.


While doctors say more than 90 percent of legitimate patients are children with stunted growth, 40 percent of 442 U.S. side-effect cases tied to HGH over the last year involved people age 18 or older, according to an AP analysis of FDA data. The average adult's age in those cases was 53, far beyond the prime age for sports. The oldest patients were in their 80s.


Some of these medical records even give explicit hints of use to combat aging, justifying treatment with reasons like fatigue, bone thinning and "off-label," which means treatment of an unapproved condition


Even Medicare, the government health program for older Americans, allowed 22,169 HGH prescriptions in 2010, a five-year increase of 78 percent, according to data released by the Centers for Medicare and Medicaid Services in response to an AP public records request.


"There's no question: a lot gets out," said hormone specialist Dr. Mark Molitch of Northwestern University, who helped write medical standards meant to limit HGH treatment to legitimate patients.


And those figures don't include HGH sold directly by doctors without prescriptions at scores of anti-aging medical practices and clinics around the country. Those numbers could only be tallied by drug makers, who have declined to say how many patients they supply and for what conditions.


First marketed in 1985 for children with stunted growth, HGH was soon misappropriated by adults intent on exploiting its modest muscle- and bone-building qualities. Congress limited HGH distribution to the handful of rare conditions in an extraordinary 1990 law, overriding the generally unrestricted right of doctors to prescribe medicines as they see fit.


Despite the law, illicit HGH spread around the sports world in the 1990s, making deep inroads into bodybuilding, college athletics, and professional leagues from baseball to cycling. The even larger banned market among older adults has flourished more recently.


FDA regulations ban the sale of HGH as an anti-aging drug. In fact, since 1990, prescribing it for things like weight loss and strength conditioning has been punishable by 5 to 10 years in prison.


Steve Kleppe, of Scottsdale, Ariz., a restaurant entrepreneur who has taken HGH for almost 15 years to keep feeling young, said he noticed a price jump of about 25 percent after the block on imports. He now buys HGH directly from a doctor at an annual cost of about $8,000 for himself and the same amount for his wife.


Many older patients go for HGH treatment to scores of anti-aging practices and clinics heavily concentrated in retirement states like Florida, Nevada, Arizona and California.


These sites are affiliated with hundreds of doctors who are rarely endocrinologists. Instead, many tout certification by the American Board of Anti-Aging and Regenerative Medicine, though the medical establishment does not recognize the group's bona fides.


The clinics offer personalized programs of "age management" to business executives, affluent retirees, and other patients of means, sometimes coupled with the amenities of a vacation resort. The operations insist there are few, if any, side effects from HGH. Mainstream medical authorities say otherwise.


A 2007 review of 31 medical studies showed swelling in half of HGH patients, with joint pain or diabetes in more than a fifth. A French study of about 7,000 people who took HGH as children found a 30 percent higher risk of death from causes like bone tumors and stroke, stirring a health advisory from U.S. authorities.


For proof that the drug works, marketers turn to images like the memorable one of pot-bellied septuagenarian Dr. Jeffry Life, supposedly transformed into a ripped hulk of himself by his own program available at the upscale Las Vegas-based Cenegenics Elite Health. (He declined to be interviewed.)


These promoters of HGH say there is a connection between the drop-off in growth hormone levels through adulthood and the physical decline that begins in late middle age. Replace the hormone, they say, and the aging process slows.


"It's an easy ruse. People equate hormones with youth," said Dr. Tom Perls, a leading industry critic who does aging research at Boston University. "It's a marketing dream come true."


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Associated Press Writer David B. Caruso reported from New York and AP National Writer Jeff Donn reported from Plymouth, Mass. AP Writer Troy Thibodeaux provided data analysis assistance from New Orleans.


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AP's interactive on the HGH investigation: http://hosted.ap.org/interactives/2012/hgh


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The AP National Investigative Team can be reached at investigate(at)ap.org


EDITOR'S NOTE _ Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.


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Wall Street sinks as "fiscal cliff" fears escalate

NEW YORK (Reuters) - U.S. stocks slid on Friday after a Republican plan to avoid the "fiscal cliff" failed to gain support on Thursday night, shrinking hopes that a deal would be reached before the new year.


Trading was volatile as investors lost confidence in the prospect of a deal between the White House and Republicans. Lower volume ahead of the Christmas and New Year's holidays exaggerated market swings. The CBOE Volatility Index <.vix> or VIX, the market's favored anxiety measure, rose 5 percent to 18.56, but was off the day's high.


Republican House Speaker John Boehner failed to garner enough votes even from his own party to pass his "Plan B" tax bill late on Thursday. This was the latest setback in negotiations to avoid $600 billion in tax hikes and spending cuts that some say could tip the U.S. economy into recession.


"The failure with Plan B was disappointing, if not terribly surprising, but now there's a real lack of clarity about what will happen, and markets hate that," said Mike Hennessy, managing director of investments for Morgan Creek in Chapel Hill, North Carolina.


The day's biggest loser on the New York Stock Exchange was Herbalife , which dropped for an eighth straight session. Investor Bill Ackman recently ramped up his campaign against the company. Herbalife skidded 19 percent to $27.25 and has lost more than 35 percent this week.


Plan B, which called for tax increases on those who earn $1 million or more a year, was not going to pass the Democratic-led Senate or win acceptance from the White House anyway. But it exposed the reality that it will be difficult to get Republican support for the more expansive tax increases that President Barack Obama has urged.


Still, the declines of about 1 percent in the three major U.S. stock indexes suggest that investors do not believe the economy will be unduly damaged by the absence of a deal, said Mark Lehmann, president of JMP Securities, in San Francisco.


"You could have easily woken up today and seen the market down 300 or 400 points, and everyone would have said, 'That's telling you this is really dire,'" Lehmann said.


"I think if you get into mid-January and (the talks) keep going like this, you get worried, but I don't think we're going to get there."


Banking shares, which outperform in times of economic expansion and have led the market on signs of progress with resolving the fiscal impasse, led declines. Citigroup Inc fell 2 percent to $39.35, while Bank of America slid 2.3 percent to $11.25. The KBW Banks index <.bkx> lost 1.4 percent.


The Dow Jones industrial average <.dji> dropped 142.29 points, or 1.07 percent, to 13,169.43. The Standard & Poor's 500 Index <.spx> dropped 15.69 points, or 1.09 percent, to 1,428.00. The Nasdaq Composite Index <.ixic> dropped 39.23 points, or 1.29 percent, to 3,011.15.


Even with the day's declines, the S&P 500 is up nearly 1 percent for the week and about 13 percent for the year.


The day's round of data indicated the economy was surprisingly resilient in November; consumer spending rose by the most in three years and a gauge of business investment jumped.


But separate data showed consumer sentiment slumped in December. The S&P Retail Index <.spxrt> fell 1.4 percent.


U.S.-listed shares of Research in Motion sank 21 percent to $11.09 after the Canadian company, known as the BlackBerry maker, reported its first-ever decline in its subscriber numbers on Thursday alongside a new fee structure for its high-margin services segment.


(Additional reporting by Ryan Vlastelica and Leah Schnurr; Editing by Bernadette Baum and Jan Paschal)



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Yemeni Leader, Hadi, Shakes Up a Divided Military





BEIRUT, Lebanon — President Abdu Rabbu Mansour Hadi of Yemen ordered a sweeping restructuring of the country’s divided and weak military on Wednesday, moving to replace or sideline commanders who were loyal to his predecessor and whose competing agendas had fed the country’s persistent insecurity.







Yahya Arhab/European Pressphoto Agency

A Yemeni soldier at a checkpoint in Sana, Yemen, on Thursday.








The decrees issued by the president centralized the command of the military under five branches, officials said. Most significant, they said, the president’s edict would result in the dismantling of the powerful Republican Guard, a unit led by a rival of Mr. Hadi’s who had defied the president’s orders.


Overhauling the military was seen as a crucial step in Yemen’s delicate transition after the autocratic rule of Mr. Hadi’s predecessor, Ali Abdullah Saleh, who held power for more than three decades. Months of street protests against Mr. Saleh’s rule last year led to a political crisis while creating a security vacuum that allowed groups linked to Al Qaeda to seize territory, especially in the south of the country.


After Mr. Saleh agreed to step down in November 2011 in exchange for immunity and as part of a deal brokered by Persian Gulf states and backed by the United States, he continued to exert his influence through relatives who held senior government posts, angering Yemenis who opposed the immunity deal and complicating the already fragile transition.


The decrees that Mr. Hadi issued on Wednesday seemed aimed in part at severing Mr. Saleh’s ties. Most directly, the president replaced a nephew of Mr. Saleh’s, Yahya Saleh, the head of the central security forces as well as of an American-trained counterterrorism unit, according to the state news agency.


The reshuffle also aimed to break up the Republican Guard and the Special Forces, led by Brig. Gen. Ahmed Ali Saleh, former President Saleh’s son, distributing brigades among the new military branches and regional commands.


It was not immediately clear what would become of General Saleh, whose soldiers had clashed with the government in recent months. Last week, more than 90 Republican Guard soldiers were sentenced to prison for attacking a defense facility in Sana in August, in retaliation for an attempt by Mr. Hadi to transfer Republican Guard brigades away from General Saleh’s control.


Najeeb Ghallab, a political analyst in Yemen, said the decrees could potentially unify the military and turn it into a force suited to respond to Yemen’s multiple security threats. If the new military was used as a tool for politics — as it has often been in the past — the effort by Mr. Hadi would fail.


“It should not be used for settling accounts,” Mr. Ghallab said. “If the restructuring is used for settling accounts, this may lead to retaliatory acts that will affect the whole political settlement.”


Nasser Arrabyee contributed reporting from Sana, Yemen.



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