Wii U: New console launches in a sea of gadgets
















NEW YORK (AP) — In the six years since the last major video game system launched, Apple unveiled the iPhone and the iPad, “Angry Birds” invaded smartphones and Facebook reached a billion users. In the process, scores of video game consoles were left to languish in living rooms alongside dusty VCRs and disc players.


On Sunday, Nintendo Co. is launching the Wii U, a game machine designed to appeal both to the original Wii’s casual audience and the hardcore gamers who skip work to be among the first to play the latest “Call of Duty” release. Just like the Wii U’s predecessor, the Wii, which has sold nearly 100 million units worldwide since 2006, the new console’s intended audience “truly is 5 to 95,” says Reggie Fils-Aime, the president of Nintendo of America, the Japanese company’s U.S. arm.













But the Wii U arrives in a new world. Video game console sales have been falling, largely because it’s been so long since a new system has launched. Most people who wanted an Xbox 360, PlayStation 3 or a Wii already have one. Another reason: People in the broad 5-to-95 age range have shifted their attention to games on Facebook, tablet computers and mobile phones.


U.S. video game sales last month, including hardware, software and accessories, totaled $ 755.5 million, according to the research firm NPD Group. In October 2007, the figure stood at $ 1.1 billion.


The Wii U is likely to do well during the holiday shopping season, analysts believe —so well that shoppers may see shortages. But the surge could peter out in 2013. The Wii U is not expected to be the juggernaut that the Wii was in its heyday, according to research firm IHS iSuppli. The Wii outsold its competitors, the Xbox 360 and the PlayStation 3, in its first four years on sale, logging some 79 million units by the end of 2010. By comparison, IHS expects the Wii U to sell 56.7 million in its first four years.


In the age of a million gadgets and lean wallets, the storied game company faces a new challenge: convincing people that they need a new video game system rather than, say, a new iPad.


The Wii U, which starts at $ 300, isn’t lacking in appeal. It allows for “asymmetrical game play,” meaning two people playing the same game can have entirely different experiences depending on whether they use a new tablet-like controller called the GamePad or the traditional Wii remote. The GamePad can also be used to play games without using a TV set, as you would on a regular tablet. And it serves as a fancy remote controller to navigate a TV-watching feature called TVii, which will be available in December.


Nintendo, known for iconic game characters such as Mario, Donkey Kong and Zelda, is expected to sell the consoles quickly in the weeks leading up to the holidays. After all, it’s been six long years and sons, daughters, brothers and sisters are demanding presents. GameStop Corp., the world’s No. 1 video game retailer, said last week that advance orders sold out and it has nearly 500,000 people on its Wii U waitlist.


Even so, it’s a “very, very crowded space in consumer electronics” this holiday season, notes Ben Bajarin, a principal analyst at Creative Strategies who covers gaming.


Apple‘s duo of iPads, the full-size model and a smaller version called the Mini, will be competing for shoppers’ attention. Not to be outdone, Amazon.com Inc. has launched a trove of Kindle tablets and e-readers in time for the holidays. These range from the Paperwhite, a touch-screen e-reader, to the Kindle Fire HD, which features a color screen and can work with a cellular data plan. Then there are the new laptops and cheaper, thinner “ultrabooks” featuring Microsoft’s new Windows 8 operating system —not to mention smartphones from Apple Inc., Samsung and other manufacturers.


Nintendo has to be a cut above the noise here,” Bajarin says.


The Wii U is the first major game console to launch in years, but in some ways Nintendo is merely catching up with the HD trend. Sony Corp. and Microsoft Corp. began selling their own powerful, high-definition consoles six and seven years ago, respectively. Both Sony and Microsoft are expected to unveil new game consoles in 2013.


Baird analyst Colin Sebastian thinks the question is not how well the Wii U will do during the holidays, but how it will fare three and six months later.


Gaming has changed significantly in the past six years, especially when it comes to the type of mass-audience experiences that serve as Nintendo‘s bread and butter. Zynga Inc., the online game company behind Facebook games such as “FarmVille” and “Texas HoldEm Poker,” was founded in 2007. The first “Angry Birds” game, that addictive, quirky distraction that has players flinging cartoon birds at structures hiding smug green pigs launched in late 2009. The first iPad, of course, came out in 2010 —three years after the first iPhone.


Fils-Aime acknowledges that Nintendo competes in the broad entertainment landscape, “minute-by-minute,” for consumers’ time.


“That’s true today and that was true 20 years ago,” he says, adding that Nintendo‘s challenge is communicating to people “what is so fun and appealing about the new system.”


Analysts expect Wii U sales to be brisk over the holidays. Nintendo‘s loyal —some would say, fanatical— fan base has been placing advance orders and will likely keep the systems flying off store shelves well into next year. The classic Mario and Zelda games are a huge part of the appeal, since they can’t be played on any gaming system but Nintendo‘s.


Research firm IHS iSuppli estimates that by the end of the year, people will have snapped up 3.5 million Wii U consoles worldwide, compared with 3.1 million Wii units in the same period through the end of 2006.


After the Wii went on sale, shortages persisted for months. Stores were met with long lines of shoppers trying to get their hands on a Wii as late as July 2007, more than seven months after the system’s launch.


Though supply constraints are expected this time around, Fils-Aime says Nintendo will have more hardware available in the Americas than it had for the Wii’s initial months on the market. The company says it will also replenish retailers more frequently than it did six years ago.


An initial sell-out doesn’t mean the Wii U will be successful over the long term, IHS notes, citing its estimate that the Wii U won’t match the Wii’s sales over time.


Bajarin believes it’s going to take “a little bit of time” for the Wii U’s dual-screen gaming concept to sink in with people. If it proves popular, Nintendo could see even more competition at its hands.


“Technologically, it’s not a leap of the imagination to see Apple, Google, Microsoft do something like this,” he says.


____


Follow Barbara Ortutay on Twitter at https://twitter.com/BarbaraOrtutay


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Questions of Blame Linger 34 Years After Jonestown
















From the age of 13, Leslie Wagner Wilson had been indoctrinated in the California-based Peoples Temple, led by the charismatic Jim Jones, whose mission was to foster racial harmony and help the poor.


But on Nov. 18, 1978, she and a handful of church members fought their way through thick jungle in the South American country of Guyana, escaping a utopian society gone wrong where followers were starved, beaten and held prisoner in the Jonestown compound.













She walked 30 miles to safety with her 3-year-old son, Jakari, strapped to her back and a smaller group of defectors. But just hours later, the mother, sister and brother and husband she left behind were dead.


“I was so scared,” said Wagner, now 55. “We exchanged phone numbers in case we died. I was prepared to die. I never thought I would see my 21st birthday.”


Today, on the 34th anniversary, Wilson said it’s important to remember the California-based Peoples Temple Jonestown massacre, especially the survivors who have wrestled with their consciences for decades.


PHOTOS: Jonestown Massacre Anniversary


Nine members of her family were among the 918 Americans who died that day, 909 of them ordered by Jones to drink cyanide-laced Kool-Aid in the largest ritual suicide in history.


Her husband, Joe Wilson, was one of Jones’ top lieutenants who helped assassinate congressman Leo Ryan and his press crew when they tried to free church members who were being held against their will.


After arriving back in the United States, Wilson said she “went through hell” — three failed marriages, drug use and suicidal thoughts she describes in her 2009 book, “Slavery of Faith.”


“I was like Humpty Dumpty, but you couldn’t put me back together again,” she said.


Survivors, many of them African-American like Wilson, say they felt guilt and shame and faced the most agonizing question surrounding the nation’s single largest loss of life until 9/11: Was it suicide or murder?


Full Coverage: Jonestown Massacre


In the now-famous “death tape,” supporters clapped and babies cried as Jones instructed families to kill the elderly first, then the youngest in protest against capitalism and racism. Mothers poisoned 246 children before taking their own lives.


“We really can’t understand the Peoples Temple without looking at the historical time period when it arose,” said Rebecca Moore, a professor of religious studies at San Diego State University.


“With the liberation movements of the ’60s and ’70s, the collapse of the black-power movement, the Peoples Temple was the main institution in the San Francisco Bay area that promoted a message of integration and racial equality.”


Moore lost her two sisters and her nephew, the son of Jim Jones. “They were hardcore believers,” she said of her siblings.


Jim Jones, who was white, came from a “wrong side of the tracks,” poor background in Indiana where in the 1950s he became known as a charismatic preacher with an affinity for African-Americans.


“A number of survivors, including those who defected, believe to this day he had paranormal abilities,” said Moore, who met him years later. “He could heal them and read their minds.”


In the 1960s, Jones moved to San Francisco, where at the height of the Peoples Temple there were about 5,000 members.


WATCH: A Look Back at Jonestown Massacre


“They wanted my parents to join,” she said. “Like most outsiders, we didn’t have any idea what was happening outside closed doors.”


Jones ingratiated himself with celebrities and politicians, mobilizing voters to help elect Mayor George Moscone in 1975 and becoming chairman of the city’s housing authority.


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Looking hard for reasons to give thanks
















LONDON (Reuters) – With every year that passes, fewer and fewer people lead a life that is poor, nasty, brutish and short. So it is only right to step back, as America does this Thursday, to appreciate the bounties bestowed by economic progress.


Yet this Thanksgiving, with the impact of the 2008 global financial crisis refusing to fade, will not feel like a time to celebrate.













In Europe, another week brings another meeting of finance ministers to try to ‘save’ Greece as well as another set of surveys likely to show the euro zone heading for another quarter of recession.


And in the United States, despite warm words after talks on Friday, worries about the capacity of politicians to put the public finances on a sustainable footing are sure to persist.


Ward McCarthy, chief financial economist at Jefferies in New York, said he was sceptical of the consensus that Democrats and Republicans would strike a budget bargain by the year-end deadline for the two sides had painted themselves into corners.


He said it was important to distinguish between the compromises needed to dodge the immediate ‘fiscal cliff’ – a mix of tax increases and spending cuts set to take effect in January – and a long-term deal to slash the deficit.


“It’s virtually impossible to get a long-term budget deal done before the end of the year. The fiscal cliff doesn’t end the process; it’s just the beginning. So we still have the threat of another credit downgrade hanging over our head,” McCarthy said.


Joe Carson, an economist at AllianceBernstein in New York, shares those concerns; a short-term fix would not provide the clarity that businesses and consumers need.


“And without a legislative solution to the federal deficit and ever-rising federal debt problem, the U.S. runs the risk of another credit rating downgrade, with the added costs and uncertainty that could also weigh on economic growth prospects for years to come,” Carson said in a note.


EUROPE’S TROUBLES


Leaders of the 27-member European Union will hold a two-day meeting in Brussels this week to try to thrash out a long-term budget of their own. Tempers can be expected to fray.


Of greater immediate importance, however, will be talks on Tuesday among euro zone finance ministers to try to agree with the International Monetary Fund on a stop-gap financing program for Greece.


Athens is drowning in debt and needs a new write-off, the IMF and virtually all private economists say. But that is politically taboo before German elections next September. Hence the need to keep drip-feeding aid to Athens – something the Fund is reluctant to do on the basis of debt sustainability projections it considers unrealistic.


The European Central Bank has reduced the risk of a disorderly break-up of the euro by promising in principle to buy the bonds of big indebted countries such as Spain and Italy.


But the wrangling over Greece is a constant reminder of the single currency’s shaky foundations, and that weighs heavily on Europe’s economy.


“The financial stability that has been created by the measures that the ECB has taken over the summer is not translating into a better economic outlook,” said Bert Colijn, an economist in Brussels with the Conference Board, a research outfit.


GIVING SOME THANKS


The euro zone went into the fourth quarter with industrial output slumping, and a November survey of the area’s purchasing managers due on Thursday is likely to offer scant relief.


Economists polled by Reuters expect the index derived from the survey to tick up to just 45.8 from 45.7 in October – still well below the boom-bust threshold of 50.


A parallel poll of procurement executives from German industry is forecast to show no change, while on Friday Munich’s IFO institute is expected to report a deterioration in the business climate in Europe’s biggest economy.


Colijn said concern over the prospects for China, a big customer, was affecting Germany. “You see in declining orders and business confidence that the global weakening in manufacturing is a concern to Germany as well,” he said.


But there should also be reasons this week to give some sort of thanks. Several banks expect China’s HSBC/Markit purchasing managers’ index (PMI) to regain the neutral mark of 50 after a reading of 49.5 in October.


And even the dark cyclical cloud enveloping the euro zone’s PMIs has a silver structural lining, according to a Goldman Sachs study. Although pointing to a second straight quarter of recession, the recent surveys are consistent with the economic rebalancing that the single currency area needs, the bank said.


Germany is gradually stimulating domestic services, while Spain’s export sector is faring better at the expense of construction and public services.


In sum, Goldman suggests, “Spain is an economy where the all too obvious pain of the current recession may be obscuring an ongoing, necessary and broadly effective restructuring.”


As for the United States, October data on housing starts and building permits due on Tuesday might show some payback after a strong September.


But McCarthy with Jefferies said he was confident that housing was in the early stages of a long-term rebound.


“What I like about it is that it’s balanced and a gradual process, not a boom, which means it’ll probably have longer legs. Housing typically leads recoveries. This time it has lagged, which means as a consequence that the recovery itself could have longer legs,” he said.


Amen to that.


(Editing by Jane Merriman)


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Rebels in Congo reach door of Goma
















GOMA, Congo (AP) — A Rwandan-backed rebel group advanced to within 3 kilometers (1.8 miles) of Goma, a crucial provincial capital in eastern Congo, marking the first time that rebels have come this close since 2008.


Congolese army spokesman Col. Olivier Hamuli said the fighting has been going on since 6 a.m. Sunday and the front line has moved to just a few kilometers (miles) outside the city. After more than nine hours of violent clashes the two sides took a break, with M23 rebels establishing a checkpoint just 100 meters (yards) away from one held by the military in the village of Munigi, exactly 3 kilometers (1.8 miles) outside the Goma city line.













Contacted by telephone on the front line, M23 rebel spokesman Col. Vianney Kazarama said the group will spend the night in Goma.


“We are about to take the town. We will spend the night in Goma tonight,” said Kazarama. “We are confident that we can take Goma and then our next step will be to take Bukavu,” he said mentioning the capital of the next province to the south.


The M23 rebel group is made up of soldiers from a now-defunct rebel army, the National Congress for the Defense of the People, or CNDP, a group made-up primarily of fighters from the Tutsi ethnic group, the ethnicity that was targeted in Rwanda‘s 1994 genocide. In 2008, the CNDP led by Rwandan commando Gen. Laurent Nkunda marched his soldiers to the doorstep of Goma, abruptly stopping just before taking the city.


In the negotiations that followed and which culminated in a March 23, 2009 peace deal, the CNDP agreed to disband and their fighters joined the national army of Congo. They did not pick up their arms again until this spring, when hundreds of ex-CNDP fighters defected from the army in April, claiming that the Congolese government had failed to uphold their end of the 2009 agreement.


Reports, including one by the United Nations Group of Experts, have shown that M23 is actively being backed by Rwanda and the new rebellion is likely linked to the fight to control Congo’s rich mineral wealth.


The latest fighting broke out Thursday and led to the deaths of 151 rebels and two soldiers. On Saturday U.N. attack helicopters targeted M23 positions in eastern Congo.


Also on Saturday, United Nations Secretary-General Ban Ki-Moon had called Rwandan President Paul Kagame “to request that he use his influence on the M23 to help calm the situation and restrain M23 from continuing their attack,” according to peacekeeping chief Herve Ladsous who spoke at the U.N. headquarters in New York on Saturday.


North Kivu governor Julien Paluku said Saturday that the Congolese army had earlier retreated from Kibumba, which is 30 kilometers (19 miles) north of Goma, after thousands of Rwandans, who he says were backing the rebels, attacked early Saturday.


“Rwandan forces bombarded our positions in Kibumba since early this morning and an estimated 3,500 crossed the border to attack us,” he said Saturday.


In downtown Goma, panicked residents had come out to try to get more information on what was happening. A 45-year-old mother of five said that she has nowhere to go.


“I don’t really know what is happening, I’ve seen soldiers and tanks in the streets and that scares me,” said Imaculee Kahindo. Asked if she planned to leave the city, she said: “What can we do? I will probably hide in my house with my children.”


Hamuli, the spokesman for the Congolese army, denied reports that soldiers were fleeing.


In 2008 as Nkunda’s CNDP rebels amassed at the gates of Goma, reporters inside the city were able to see Congolese soldiers running in the opposite direction, after having abandoned their posts. The Congolese army is notoriously dysfunctional with soldiers paid only small amounts, making it difficult to secure their loyalties during heavy fighting.


“We are fighting 3 kilometers from Goma, just past the airport. And our troops are strong enough to resist the rebels,” said Hamuli. “We won’t let the M23 march into our town,” he said. Asked if his troops were fleeing, he added: “These are false rumors. We are not going anywhere.”


U.N. peacekeeping chief Ladsous said that the rebels were very well-equipped, including with night vision equipment allowing them to fight at night.


Reports by United Nations experts have accused Rwanda, as well as Uganda, of supporting the rebels. Both countries strongly deny any involvement and Uganda said if the charges continue it will pull its peacekeeping troops out of Somalia, where they are playing an important role in pushing out the Islamist extremist rebels.


The U.N. Security Council called for an immediate stop to the violence following a two-hour, closed-door emergency meeting. The council said it would add sanctions against M23 rebels and demanded that rebels immediately stop their advance toward the provincial capital of Goma.


“We must stop the M23″ because Goma’s fall “would, inevitably, turn into a humanitarian crisis,” said France‘s U.N. Ambassador, Gerard Araud. He added that U.N. officials would decide in the coming days which M23 leaders to target for additional sanctions.


___


Associated Press writer Maria Sanminiatelli at the United Nations and Rukmini Callimachi in Dakar, Senegal, contributed to this report.


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Nintendo seeks to shake up gaming again with Wii U
















LOS ANGELES (AP) — It can scan zombies, replace a TV remote, open a window into virtual worlds and shoot ninja stars across a living room. It’s the Wii U GamePad, the 10-by-5-inch touchscreen controller for the successor to the Wii out Sunday, and if you ask the brains behind the “Super Mario Bros.” about it, they say it’s going to change the way video games are made and played.


“You can’t manufacture buzz,” said Nintendo of America president Reggie Fils-Aime. “You can’t manufacture word of mouth. All we can do is to provide the product and the games to foster some sparks that hopefully enable that to happen. We think we have that with Wii U.”













Much like the iPad, the curvaceous GamePad features a touchscreen that can be manipulated with the simple tap or swipe of a finger, but it’s surrounded by the kinds of buttons, bumpers, thumbsticks and triggers that are traditionally found on a modern-day game controller. There’s also a camera, stylus, microphone, headphone jack and speakers.


While the Wii U can employ its predecessor’s motion-control remotes with a sensor bar that similarly detects them in front of the TV, the console’s focus on two-screen experiences makes it feel more like a high-definition, living-room rendition of the Nintendo DS and 3DS, the Japanese gaming giant’s dual-screen hand-held devices, than the original Wii.


“It’s a second screen like a tablet or a cellphone, but it’s different,” said Mark Bolas, professor of interactive media at the University of Southern California. “In addition to providing more information, the GamePad is also a second viewpoint into a virtual world. Nintendo is letting you turn away from the TV screen to see what’s happening with the GamePad.”


The touchscreen controller can also serve as a makeshift TV remote control and online video aggregator for services like Netflix and Amazon Instant Video. (Nintendo cheekily calls it TVii and announced Friday that it won’t be available until December.) Some games have the ability to flip-flop between the TV screen and the GamePad screen, allowing for non-gaming use of the TV.


There are limitations to the GamePad: it won’t work after it’s been moved 25 feet away from the Wii U console; it lasts about three to five hours after charging; and while its touchscreen is intuitive as those that have come before it, the GamePad is not quite as simple to use as the Wii controllers that had everyone bowling in their living rooms.


“Is the GamePad more complex than the Wii Remote was six years ago? Certainly,” said Fils-Aime. “On the other hand, I believe consumers will easily grasp the GamePad and what we’re trying to do with the varied experiences we’ll have not only at launch but over the next number of years in this system’s life.”


The abilities of the GamePad are most notably showcased by Nintendo Co. in the amusement park-themed mini-game collection “Nintendo Land,” which comes with the deluxe edition of the console. “Nintendo Land” turns the GamePad into several different tools, such as the dashboard of a spaceship or the ultimate advantage in a game of hide-and-seek.


In other titles, the controller mostly eliminates the need to pause the action to study a map in order to figure out where to go next or scour an inventory for just the right weapon. That can all be achieved simultaneously on the GamePad screen, which is best illustrated among the launch titles in Ubisoft’s survival action game “ZombiU.”


The GamePad acts as a high-tech scanner in “ZombiU” that can analyze a player’s surroundings in a version of London overrun by zombies. It pumps up the terror by drawing players’ attention away from the horrors lurking around them.


Will gamers who’ve grown up with their eyes glued to the TV and hands gripped on a controller adapt to glimpsing at another screen? The Wii U edition of “Call of Duty: Black Ops II,” for example, invites players to customize their arsenal on the fly on the GamePad, as well as engage in multiplayer matches without needing to split the TV in half.


Nintendo expects 50 games will be available for the Wii U by March 2013. There will be 23 games released alongside the console when it debuts Sunday, including the platformer “New Super Mario Bros. U,” karaoke game “Sing Party,” an “armored edition” of “Batman: Arkham City” and the Mickey Mouse adventure “Disney Epic Mickey 2: The Power of Two.”


“New consoles come along and nobody exploits their full capabilities for the first two to three years,” said Warren Spector, creative director at “Epic Mickey 2″ developer Junction Point Studios. “It’s only after you’ve had two or three projects that you fully understand what the hardware is capable of doing. We’re going to be experimenting with it more.”


Fils-Aime said he’s already envisioning ways that developers will innovate with future games. He pointed to some of the console’s features that aren’t on display in the launch line-up, such as the ability to play with two GamePads at once or utilize the console’s near-field communication technology to interact with other gadgets in the room.


“I think that developers and consumers are ready for new experiences,” said Fils-Aime. “More than anything else, I think that’s what is driving excitement for Wii U. They’ve experienced what this generation has to offer. They’re ready for something new.”


___


Online:


http://www.nintendo.com/wiiu


___


Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://www.twitter.com/derrikjlang.


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Lady Gaga tweets some racy images before concert
















BUENOS AIRES, Argentina (AP) — Lady Gaga’s tweets were getting a lot of attention ahead of her Buenos Aires concert Friday night.


The Grammy-winning entertainer has more than 30 million followers on Twitter and that’s where she shared a link this week to a short video showing her doing a striptease and fooling around in a bathtub with two other women.













She told her followers that it’s a “surprise for you, almost ready for you to TASTE.”


Then, in between concerts in Brazil and Argentina, she posted a picture Thursday on her Twitter page showing her wallowing in her underwear and impossibly high heels on top of the remains of what appears to be a strawberry shortcake.


“The real CAKE isn’t HAVING what you want, it’s DOING what you want,” she tweeted.


Lady Gaga wore decidedly unglamorous baggy jeans and a blouse outside her Buenos Aires hotel Thursday as three burly bodyguards kept her fans at bay. Another pre-concert media event where she was supposed to be given “guest of honor” status by the city government Friday afternoon was cancelled.


After Argentina, she is scheduled to perform in Santiago, Chile; Lima, Peru; and Asuncion, Paraguay, before taking her “Born This Way Ball” tour to Africa, Europe and North America.


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Gaza hospitals stretched, need supplies to treat wounded: WHO
















GENEVA (Reuters) – Gaza hospitals are overwhelmed with casualties from Israel‘s bombings and face critical shortages of drugs and medical supplies, the World Health Organization (WHO) said on Saturday.


The U.N. health agency appealed for $ 10 million from donors to meet the need for drugs and supplies over the next three months.













Officials in Gaza said 43 Palestinians, nearly half of them civilians including eight children, had been killed since Israel began its air strikes. Three Israeli civilians were killed by a rocket fired from the enclave on Thursday.


Israel unleashed its massive air campaign on Wednesday with the declared goal of deterring Hamas, the Palestinian Islamist group that runs the Gaza Strip, from launching rockets that have plagued its southern communities for years.


The WHO, quoting Health Ministry officials in Gaza, said 382 people have been injured – 245 adults and 137 children.


“Many of those injured have been admitted to hospitals with severe burns, injuries from collapsing buildings and head injuries,” the WHO said in a statement issued in Geneva.


Health authorities have declared an emergency situation in all hospitals to cope with patients, it said.


“Before the hostilities began, health facilities were severely over stretched mainly as a result of the siege of Gaza,” the WHO said. Israel maintains a tight blockade on the Gaza Strip with the help of neighboring Egypt.


The Gaza Ministry of Health‘s supplies of many life-saving drugs and disposable equipment were at “zero stock”, it said.


“The Ministry of Health has postponed all elective surgeries due to the emergency and shortages in anaesthesia drugs,” it said. Non-urgent cases are being transferred to hospitals run by aid groups and health personnel have been asked to report to the nearest health facility for extended shifts, it said.


“WHO appeals to the international and regional community for urgent financial support to provide essential medicines to cover pre-existing shortages, as well as emergency supplies for treating casualties and the chronically ill,” it said.


(Reporting by Stephanie Nebehay; Editing by Alison Williams)


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Santander plans to invest in Spain’s bad bank
















MADRID (Reuters) – Spain‘s Santander plans to invest in the country’s so-called bad bank in a sign that healthy domestic lenders are willing to support the entity created to clean up the aftermath of a 2008 property crash.


“The bank plans on investing in the bad bank,” a spokesman for Santander, Spain‘s biggest bank, told Reuters on Saturday.













Spain has set up the bad bank to siphon off toxic real estate assets from bank balance sheets that date from the property crash. The bad bank’s creation is a condition of receiving up to 100 billion euros ($ 127 billion) of aid in a European bail-out of the country’s financial sector.


Spain’s second biggest bank, BBVA , is considering investing in the vehicle, but has yet to make a decision, a BBVA spokesman told Reuters on Saturday.


Sabadell is also considering investing but has not yet made a decision, a Sabadell spokesman said.


The bad bank’s managers are currently in talks with BBVA, Sabadell and Barcelona-based Caixabank about them investing in the vehicle, a banking source said. Caixabank was not immediately available for comment.


An Economy Ministry source said on Friday the bad bank could go ahead just with backing from domestic investors but foreign investors would give it credibility.


The bad bank will initially have equity of 3.9 billion euros. But the government needs private investors to stump up 2.2 billion euros, or 55 percent of this, in December, the Economy Ministry source said on Friday.


Private sector support is key because the government wants to keep its stake in the bad bank below 50 percent to reduce the burden on state finances.


The bad bank, known as Sareb, will initially receive assets – such as soured loans to housebuilders and foreclosed property – from four state-rescued banks, including Bankia , worth 45 billion euros. It will have a maximum asset value of 90 billion euros.


The equity in the bad bank could rise to 5 billion euros after including assets from a further group of banks, aside from those taken from the state-rescued banks, the source said.


The government hopes eventually to capture 500 million euros of investment from foreign investors, or 10 percent of the final equity tranche.


The rest of the bad bank will be financed by senior state-backed bonds.


Government sources said on Friday that Spain’s bank restructuring fund, the FROB, could use part of the European aid to invest in the bad bank, and as such, would not need to tap markets.


(Reporting By Sonya Dowsett. Editing by Jane Merriman)


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Israel hits Hamas buildings, shoots down Tel Aviv-bound rocket
















GAZA/JERUSALEM (Reuters) – Israeli aircraft bombed Hamas government buildings in Gaza, and the “Iron Dome” defense system shot down a Tel Aviv-bound rocket on Saturday as Israel geared up for a possible ground invasion.


Hamas, the Palestinian Islamist group that runs the Gaza Strip, said Israeli missiles wrecked the office building of Prime Minister Ismail Haniyeh – where he had met on Friday with the Egyptian prime minister – and struck a police headquarters.













Along the Tel Aviv beachfront, volleyball games came to an abrupt halt and people crouched as sirens sounded. Two interceptor rockets streaked into the sky. A flash and an explosion followed as Iron Dome, deployed only hours earlier near the city, destroyed the incoming projectile in mid-air.


With Israeli tanks and artillery positioned along the Gaza border and no end in sight to hostilities now in their fourth day, Tunisia’s foreign minister travelled to the enclave in a show of Arab solidarity.


In Cairo, a presidential source said Egyptian President Mohamed Mursi would hold four-way talks with the Qatari emir, the prime minister of Turkey and Hamas chief Khaled Meshaal in the Egyptian capital on Saturday to discuss the Gaza crisis.


Egypt has been working to reinstate calm between Israel and Hamas after an informal ceasefire brokered by Cairo unraveled over the past few weeks. Meshaal, who lives in exile, has already held a round of talks with Egyptian security officials.


Officials in Gaza said 43 Palestinians, nearly half of them civilians including eight children, had been killed since Israel began its air strikes. Three Israeli civilians were killed by a rocket on Thursday.


Israel unleashed its massive air campaign on Wednesday with the declared goal of deterring Hamas from launching rockets that have plagued its southern communities for years.


The Israeli army said it had zeroed in on a number of government buildings during the night, including Haniyeh’s office, the Hamas Interior Ministry and a police compound.


Taher al-Nono, a spokesman for the Hamas government, held a news conference near the rubble of the prime minister’s office and pledged: “We will declare victory from here.”


Hamas‘s armed wing claimed responsibility for Saturday’s rocket attack on Tel Aviv, the third against the city since Wednesday. It said it fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.


“Well that wasn’t such a big deal,” said one woman, who had watched the interception while clinging for protection to the trunk of a baby palm tree on a traffic island.


In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.


Among those killed in airstrikes on Gaza on Saturday were at least four suspected militants riding on motorcycles.


Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, along with appeals to avoid civilian casualties.


Hamas, shunned by the West over its refusal to recognize Israel, says its cross-border attacks have come in response to Israeli strikes against Palestinian fighters in Gaza.


RESERVIST CALL-UP


At a late night session on Friday, Israeli cabinet ministers decided to more than double the current reserve troop quota set for the Gaza offensive to 75,000, political sources said, in a signal Israel was edging closer to an invasion.


Around 16,000 reservists have already been called up.


Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”


“We have a plan … it will take time. We need to have patience. It won’t be a day or two,” he added.


A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Prime Minister Benjamin Netanyahu, favorite to win a January national election.


Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-09, killed over 1,400 Palestinians, mostly civilians. Thirteen Israelis died.


But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.


“Israel should understand that many things have changed and that lots of water has run in the Arab river,” Tunisian Foreign Minister Rafik Abdesslem said as he surveyed the wreckage from a bomb-blast site in central Gaza.


One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s manoeuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.


“DE-ESCALATION”


Netanyahu spoke late on Friday with U.S. President Barack Obama for the second time since the offensive began, the prime minister’s office said in a statement.


“(Netanyahu) expressed his deep appreciation for the U.S. position that Israel has a right to defend itself and thanked him for American aid in purchasing Iron Dome batteries,” the statement added.


The two leaders have had a testy relationship and have been at odds over how to curb Iran’s nuclear program.


A White House official said on Saturday Obama called Turkish Prime Minister Tayyip Erdogan to discuss how the two countries could help bring an end to the Gaza conflict.


Ben Rhodes, White House deputy national security adviser, told reporters that Washington “wants the same thing as the Israelis want”, an end to rocket attacks from Gaza. He said the United States is emphasizing diplomacy and “de-escalation”.


In Berlin, a spokesman for German Chancellor Angela Merkel said she had spoken to Netanyahu and Egypt’s Mursi, stressing to the Israeli leader that Israel had a right to self-defense and that a ceasefire must be agreed as soon as possible to avoid more bloodshed.


U.N. Secretary-General Ban Ki-moon is expected to visit Israel and Egypt next week to push for an end to the fighting in Gaza, U.N. diplomats said on Friday.


The Israeli military said 492 rockets fired from Gaza have hit Israel since the operation began. Iron Dome intercepted another 245.


In Jerusalem, targeted by a Palestinian rocket on Friday for the first time in 42 years, there was little outward sign on the Jewish Sabbath that the attack had any impact on the usually placid pace of life in the holy city.


Some families in Gaza have abandoned their homes – some of them damaged and others situated near potential Israeli targets – and packed into the houses of friends and relatives.


(Additional reporting by Dan Williams and Douglas Hamilton in Tel Aviv, Allyn Fisher-Ilan in Jerusalem, Jeff Mason aboard Air Force One, Writing by Jeffrey Heller; editing by Crispian Balmer)


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Samsung goes after HTC deal to undercut Apple-filing
















SAN FRANCISCO (Reuters) – When Apple Inc and HTC Corp last week ended their worldwide legal battles with a 10-year patent licensing agreement, they declined to answer a critical question: whether all of Apple‘s patents were covered by the deal.


It’s an enormously important issue for the broader smartphone patent wars. If all the Apple patents are included -including the “user experience” patents that the company has previously insisted it would not license – it could undermine the iPhone makers efforts to permanently ban the sale of products that copy its technology.













Samsung Electronics Co Ltd, which could face such a sales ban following a crushing jury verdict against it in August, now plans to ask a U.S. judge to force Apple to turn over a copy of the HTC agreement, according to a court filing on Friday.


Representatives for Apple and Samsung could not immediately be reached for comment.


Judges are reluctant to block the sale of products if the dispute can be resolved via a licensing agreement. To secure an injunction against Samsung, Apple must show the copying of its technology caused irreparable harm and that money, by itself, is an inadequate remedy.


Ron Laurie, managing director of Inflexion Point Strategy and a veteran IP lawyer, said he found it very unlikely that HTC would agree to a settlement that did not include all the patents.


If the deal did in fact include everything, Laurie and other legal experts said that would represent a very clear signal that Apple under CEO Tim Cook was taking a much different approach to patent issues than his predecessor, Steve Jobs.


Apple first sued HTC in March 2010, and has been litigating for more than two years against handset manufacturers who use Google’s Android operating system.


Apple co-founder Jobs promised to go “thermonuclear” on Android, and that threat has manifested in Apple’s repeated bids for court-imposed bans on the sale of its rivals’ phones.


Cook, on the other hand, has said he prefers to settle rather than litigate, if the terms are reasonable. But prior to this month, Apple showed little willingness to license its patents to an Android maker.


HOLY PATENTS


In August, a Northern California jury handed Apple a $ 1.05 billion verdict, finding that Samsung’s phones violated a series of Apple’s software and design patents.


Apple quickly asked U.S. District Judge Lucy Koh to impose a permanent sales ban on those Samsung phones, and a hearing is scheduled for next month in San Jose, California.


In a surprise announcement on Saturday, however, Apple and HTC announced a license agreement covering “current and future patents” at both companies. Specific terms are unknown, though analysts have speculated that HTC will pay Apple somewhere between $ 5 and $ 10 per phone.


During the Samsung trial, Apple IP chief Boris Teksler said the company is generally willing to license many of its patents – except for those that cover what he called Apple’s “unique user experience” like touchscreen functionality and design.


However, Teksler acknowledged that Apple has, on a few occasions, licensed those holy patents – most notably to Microsoft, which signed an anti-cloning agreement as part of the deal.


In opposing Apple’s injunction request last month, Samsung said Apple’s willingness to license at all shows money should be sufficient compensation, court documents show.


Apple has already licensed at least one of the prized patents in the Samsung case to both Nokia and IBM. That fact was confidential until late last year, when the court mistakenly released a ruling with details that should have been hidden from public view.


In a court filing last week, Apple argued that its Nokia, IBM and Microsoft deals shouldn’t stand in the way of an injunction. Microsoft’s license only covers Apple patents filed before 2002, and IBM signed several years before the iPhone launched, according to Apple.


“IBM’s agreement is a cross license with a party that does not market smartphones,” Apple wrote.


Apple’s seeming shift away from Jobs-style war, and toward licensing, may also reflect a realization that injunctions have become harder to obtain for a variety of reasons.


Colleen Chien, a professor at Santa Clara Law in Silicon Valley, said an appellate ruling last month that tossed Apple’s pretrial injunction against the Samsung Nexus phone raised the legal standard for everyone.


“The ability of technology companies to get injunctions on big products based on small inventions, unless the inventions drive consumer’s demand, has been whittled away significantly,” Chien said.


The case in U.S. District Court, Northern District of California is Apple Inc v. Samsung Electronics Co Ltd et al, 11-1846.


(Reporting By Dan Levine and Poornima Gupta; Editing by Bernard Orr)


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