Boeing 787 Plane Works to Overcome Snags

Stuart Isett for The New York Times

The upper deck of a Boeing 787 Dreamliner being assembled in Everett, Wash. The basic model, called the 787-8, can carry 210 to 250 passengers.

After years of delays in producing its much-anticipated 787 aircraft, Boeing seemed in recent months to be turning a corner, streamlining production and increasing the pace of deliveries.

But a pair of embarrassing problems last week revived concerns about the reliability of the plane, the first commercial aircraft to make extensive use of lightweight carbon composites that promise big fuel savings for airlines.

A United Airlines 787 flying from Houston to Newark was diverted to New Orleans last Tuesday after one of its six electric generators failed midflight. That same day, the Federal Aviation Administration ordered inspections of fuel line connectors on all 787s, warning of a risk of fuel leaks and fires.

Aviation experts cast these issues as minor hiccups and said it was typical for new planes to experience such problems, particularly in the first few years of production.

On Monday, an aerospace analyst, David E. Strauss of UBS, raised another concern — whether the cost of building the planes was coming down fast enough for individual plane sales to become profitable by early 2015, as Boeing has projected.

Boeing officials have said that the company will earn enough on subsequent sales to average a percentage profit in the low single digits on the first 1,100 planes, which includes deliveries into 2021. Company officials said late Monday that they remained confident in their projections.

But in a research report, Mr. Strauss said that Boeing’s costs did not appear to be declining rapidly enough for sales to turn profitable in 2015 and that the program could continue to spend $4 billion to $5 billion more than it gained in revenue over the next three years. Unless the company can bring down the costs more quickly as it gains experience in building the planes, Mr. Strauss wrote, Boeing may not begin to make a profit on each plane until 2021.

A lot is riding on the success of the 787 Dreamliner, a risky technological and commercial bet for Boeing, which is based in Chicago. The company has so far delivered 38 of the jets to eight airlines, including United Airlines, All Nippon Airways of Japan and Poland’s LOT. It has outlined ambitious plans to double its production rate to 10 planes a month by the end of 2013. It is also starting to build a stretched-out version and mulling an even larger one after that, to make the venture more profitable.

But with the combination of the problem on the United flight and the F.A.A. directive, “This was too much news about the 787 in one day,” said Addison Schonland, an aviation analyst and a partner at Airinsight.com. “But remember, it’s a brand-new airplane. When you start flying it around, you start discovering things. Over all, the number of hiccups has been fantastic.”

The basic model, called the 787-8, can carry 210 to 250 passengers about 8,000 nautical miles, the distance from New York to Singapore, and has a list price of $206.8 million. Early customers, however, are receiving big discounts to make up for the delays caused by a series of manufacturing problems. The first stretched version for 250 to 290 passengers, the 787-9, is listed at $243.6 million and could be ready in early 2014.

Mr. Strauss estimated that Boeing was recently spending $232 million to build each plane but charged customers, on average, only about half that.

Given Wall Street’s concerns, Boeing’s stock has been in limbo for more than three years, trading in a narrow range around $75 a share.

“Boeing has not had a major snafu on the 787 for over a year now, but we think most investors remain skeptical as to whether Boeing can keep this up,” Robert Stallard, an analyst at RBC Capital Markets, said in a note to clients last month.

Boeing has acknowledged that it outsourced too much of the work on the plane to suppliers who were willing, collectively, to cover billions of dollars of the development costs. Many parts needed reworking. That and other design changes forced the company to set up a separate line in Everett, Wash., to handle the extra work on the first 65 jets. It has also built a 787 plant in Charleston, S.C., with an entirely new work force.

Still, even with all of the headaches, the 787 has enabled Boeing to jump ahead of its European rival, Airbus, in exploiting the lightweight carbon composites. Half of the plane by weight is made with composites instead of aluminum and other metals. Airbus said last week that it had finished assembly on the first A350, its rival to the 787. Its entry into commercial service is not expected before the second half of 2014.

Passengers who have flown on 787s this year have raved about the experience, and the first airlines using them also seem satisfied.

United will begin using the 787 internationally in January, with flights from Houston to Lagos, Nigeria. “There is a tremendous amount of promise for customers preferring this airplane over others,” said Jeff Smisek, chief executive of United. “It still has a new-plane smell.”

Read More..

Changing of the Guard: Signals in China of a More Open Economy

Carlos Barria/Reuters

In November, Xi Jinping made his official debut as party chief at the 18th party congress, which military officers attended.

BEIJING — In a strong signal of support for greater market-oriented economic policies, Xi Jinping, the new head of the Communist Party, made a visit over the weekend to the special economic zone of Shenzhen in south China, which has stood as a symbol of the nation’s embrace of a state-led form of capitalism since its growth over the last three decades from a fishing enclave to an industrial metropolis.

The trip was Mr. Xi’s first outside Beijing since becoming party chief on Nov. 15. Mr. Xi visited a private Internet company on Friday and went to Lotus Hill Park on Saturday to lay a wreath at a bronze statue of Deng Xiaoping, the leader who opened the era of economic reforms in 1979, when Shenzhen was designated a special economic zone. Mr. Deng famously later visited the city in 1992 to encourage reviving those economic policies after they had stalled following the violent crackdown on pro-democracy protests in 1989.

“Reform and opening up is a guiding policy that the Communist Party must stick to,” Mr. Xi said, according to Phoenix Television, one of several Hong Kong news organizations that covered the trip. “We must keep to this correct path. We must stay unwavering on the road to a prosperous country and people, and there must be new pioneering.”

In the months before the transition, there were widespread calls, including from people close to Mr. Xi, to adopt more liberal economic policies and even to experiment with greater political openness as a way for the party to maintain its rule. Without much success so far, reformers have long been encouraging the leadership to move toward a more sustainable growth model for China, one that relies more on domestic consumption rather than infrastructure investment and exports, and where state enterprises play less of a role.

Mr. Xi, known as a skillful consensus builder, has kept his ideas carefully veiled throughout his career, but his trip to Shenzhen is the strongest sign yet that he may favor more open policies. In a speech in Beijing on Nov. 29, Mr. Xi spoke of the “Chinese dream” of realizing the nation’s “revival,” which, besides being a call for renewal, also signaled strong nationalist leanings.

Mr. Xi’s father, Xi Zhongxun, was a revered senior official handpicked by Mr. Deng to help shape the new economic policies and oversee the creation of the Shenzhen zone. Mr. Xi’s mother lives in Shenzhen, and he visited her on his trip, according to Hong Kong news reports.

“If he indeed went to Shenzhen, that means he intends to make reform a subject of priority,” said Li Weidong, a liberal political analyst. “That would really be a phenomenon.”

Mr. Li cautioned, though, that the so-called reform policies that followed Mr. Deng’s 1992 southern tour, in his view, “ended up being fake” because China’s boom resulted in widespread corruption and the expansion of state enterprises at the expense of private entrepreneurship.

When Mr. Xi’s predecessor, Hu Jintao, became party chief in 2002, he was seen by many as a potential reformer, but his tenure was marked by conservative policies. For his first trip outside Beijing as party chief, Mr. Hu went in December 2002 to Xibaipo, a hallowed site for the revolution, where he reiterated a speech given by Mao Zedong.

Over the weekend, video footage from Phoenix Television showed a line of minibuses and police cars winding its way through Shenzhen. Mr. Xi and other officials walked outdoors in dark suits. The party’s official news organizations did not immediately report on the trip, but some prominent mainland Chinese news Web sites cited the Hong Kong reports.

Mr. Xi’s early moves as party leader seem aimed at emphasizing national “revival,” a theme he highlighted when he appeared on Nov. 29 with the party’s new seven-man Politburo Standing Committee in a history museum at Tiananmen Square. According to People’s Daily, the party mouthpiece, Mr. Xi stood in front of an exhibition called “The Road to Rejuvenation” and said, “After the 170 or more years of constant struggle since the Opium Wars, the great revival of the Chinese nation enjoys glorious prospects.”

He added: “Now everyone is discussing the Chinese dream, and I believe that realizing the great revival of the Chinese nation is the greatest dream of the Chinese nation in modern times.”

The emphasis on a “Chinese dream” is particular to Mr. Xi, and could prove to be a recurring motif throughout his tenure. The notion of a grand revival — “fu xing” in Mandarin — has been popular with Chinese leaders for at least a century, but Mr. Xi appears to be tapping more deeply into that nationalist vein than his recent predecessors, perhaps recognizing that traditional Communist ideology no longer has popular appeal.

Patrick Zuo contributed research.

Read More..

In giant “garage sale”, Japan’s TV giants hawk $3 billion of assets

TOKYO (Reuters) – Panasonic Corp, Japan‘s struggling maker of Viera brand TVs, owns more than 10 million square meters of office and factory space, dormitories for its workers and sports facilities for its rugby, baseball and women’s athletics teams.

As it battles for Christmas shoppers’ wallets in the year-end holiday season, the sprawling electronics conglomerate is also seeking buyers for some of those properties to trim its fixed costs and improve cashflow at a time of intense competition, particularly from South Korean rivals such as Samsung Electronics Co.

Japan’s other troubled TV makers, Sony Corp and Sharp Corp, are also selling buildings and businesses in a giant ‘garage sale’ that could raise a combined $ 3 billion.

Panasonic plans to raise $ 1.34 billion from offloading property and shares in other Japanese companies by end-March, the group’s chief financial officer Hideaki Kawai told Reuters.

“We have a lot of land and buildings in Japan and overseas,” he said in an interview at the company’s head office in Osaka, in western Japan. He declined to list which properties would go on the block, but said most are in Japan.

Included is a 24-storey central Tokyo block – built in 2003 with more than 47,300 square meters and housing 2,000 Panasonic workers – a source familiar with the plan told Reuters.

Kawai added that Panasonic would raise about a quarter of the sell-off funds by getting rid of shares it owns in other companies – a common practice of cross-shareholdings in Japan.

The proceeds would help bolster free cashflow to 200 billion yen ($ 2.43 billion) for the business year to March, Kawai said, and allow Panasonic to reduce its debt and maintain its crucial research and development effort as it revamps its business portfolio.

It will sell more assets in the year starting in April if cashflow dips below 200 billion yen, Kawai added. Panasonic President Kazuhiro Tsuga has promised to shut or sell businesses operating at below a 5 percent margin. Those sales could start as soon as April.

Panasonic’s fixed assets of $ 21 billion are around 30 percent more than those of Apple Inc, and are almost double the company’s market value. The company, founded almost a century ago as a small electrical extension socket maker, trades at around half its book value – which includes intangible assets such as patents. Sony trades at 39 percent of book, Sharp at 30 percent.

The fixed assets – buildings, land and machinery – of the three companies that were not so long ago a byword for innovation in household gadgetry total around $ 42 billion, while their combined market value is $ 24 billion.

CASHFLOW IS KING

The three firms have been downgraded by credit ratings agencies, making it tougher to raise funding on capital markets, and making asset sales more urgent.

Selling assets “is good in terms of their credit ratings because, for all three, it will lower fixed costs and they can reduce their capex requirements. Eventually, this could improve operating margins and, more importantly, cashflow,” said Alvin Lim, an analyst at Fitch Ratings in Seoul.

Fitch, which makes its ratings without input from company management, last month cut Panasonic to BB and Sony to BB minus, the first time one of the major agencies has relegated either company to junk status. Sharp is ranked B minus, adding to its borrowing costs.

“We rate Panasonic as investment grade, and it should have various funding options. Selling assets it can do without, to avoid raising additional borrowing, can be an option,” said Osamu Kobayashi, an analyst at Standard & Poor’s.

While Korean rivals have also benefited from a weaker local currency, data from the Japan Electronics and Information Technology Industries Association shows that Japanese production of consumer electronic equipment fell to just above $ 15 billion last year from more than $ 19 billion a decade ago. Output in September was just $ 980 million, half last year’s level.

“The gap with Korean makers seems to be widening. It’s going to be very difficult for them to regain their top-tier position,” said Fitch’s Lim.

As the three Japanese firms, all under new leadership, have sketched out restructuring plans, the cost of insuring their debt against defaulting in 5 years has dropped from spikes just a month ago. Credit default swaps for Sharp and Sony are down to levels last seen 3 months ago, while Panasonic’s have dropped 40 percent in the past month.

THREE PATHS

While Panasonic is looking to revamp its business around batteries, auto parts and household appliances, Sony is doubling down on smartphones, gaming and cameras. Sharp, meanwhile, is focusing on display screens and is forging alliances with the likes of Taiwan’s Hon Hai Precision Industry and U.S. chipmaker Qualcomm Inc.

Sony may also take the real estate sale route to raise much-needed cash, with a possible sale of its 37-storey New York headquarters, dubbed by New Yorkers as the ‘Chippendale’ because of its design that is reminiscent of the period English furniture. Selling that jewel could raise $ 1 billion, media have reported.

The maker of Vaio laptops, PlayStation gaming consoles and Bravia TVs may also sell its battery business, which makes lithium ion power packs for tablets, PCs and mobile phones. The company has been approached by investment banks offering to sell the unit, which employs 2,700 people and has three factories in Japan and two overseas assembly plants. Sony values the business’s fixed assets at $ 636 million.

Potential buyers could include BYD Co Ltd, a Chinese carmaker backed by billionaire investor Warren Buffett, and Taiwan’s Hon Hai – which part owns Sharp’s advanced LCD panel plant in Sakai, western Japan, and is in talks to buy TV assembly plants in China, Malaysia and Mexico for $ 667 million, Japan’s Sankei newspaper has reported.

Sharp has mortgaged nearly all its properties to secure a $ 4.6 billion bailout from Japanese banks and so has few assets to offer in a grand garage sale.

Instead, it’s selling part of the garage.

Qualcomm has agreed to buy a 5 percent stake in Sharp, making it the largest shareholder. Hon Hai, which earlier this year agreed to invest in Sharp – before its stock slumped in the wake of record losses – has said it remains interested in taking a stake.

“Whatever they can get to get through this fiscal period by scaling down their operation is a critical step for them to remain afloat,” said Fitch’s Lim.

($ 1 = 82.4700 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ian Geoghegan)

Tech News Headlines – Yahoo! News

Read More..

Packers beat Lions 27-20, take NFC North lead

GREEN BAY, Wis. (AP) — The Green Bay Packers are a victory away from clinching the NFC North title after beating the Detroit Lions 27-20 on Sunday night.

DaJuan Harris rushed for a score in his first appearance for the Packers, Aaron Rodgers added the longest TD run of his career, and Mike Daniels returned a fumble 43 yards as the Packers (9-4) opened a one-game lead over Chicago. Beat the Bears next weekend at Soldier Field, and Green Bay will win the NFC North for a second straight year.

The loss was the fifth straight for Detroit (4-9). This wasn't quite as excruciating as the previous three, though, when the Lions gave up fourth-quarter leads and fell by a total of nine points.

The Packers have won 22 straight at home against the Lions, the longest streak in the NFL.

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

Read More..

Italy Grapples With Polluting by Ilva, a Giant Steel Maker

Alessandro Penso for The New York Times

The Ilva steel plant, in Taranto, Italy, above, employs thousands of workers but is seen as a health threat by residents and courts.

TARANTO, Italy — Every morning, Graziella Lumino cleans the black soot from her kitchen window, which looks out on the hulking Ilva steel plant where her husband, Giuseppe Corisi, worked for 30 years.

After he died this year at the age of 64 from violent, sudden-onset lung cancer, his friends put a plaque on the wall of their apartment building: “Here lived the umpteenth death from lung cancer. Taranto, March 8, 2012.”

Today, Ilva, which is among the largest plants in Europe and produces more than 30 percent of Italy’s raw steel, is at the heart of a clash over the future of Italian industry, one that pits economic concerns against environmental ones and the power of the government against the judiciary amid Italy’s struggle to compete in a global economy.

After a court ordered sections of the plant closed and steel from it impounded last month, arguing that it had violated environmental laws and was raising serious health concerns in the area, the government passed an emergency decree that would allow it to continue operating while cleaning up its act, saving 20,000 jobs nationwide. Magistrates said that the new law, which must be approved by Parliament, violated the Constitution by allowing the executive branch to circumvent the judiciary.

In many ways, the Ilva plant is an emblem of the Italian economy that the technocratic government of Prime Minister Mario Monti inherited last year and has been trying to repair before elections expected early next year. It is the product of decades of physical and political neglect, an aging industrial giant that came of age in the economic boom of the late 20th century and is struggling to keep pace in the 21st.

For Italy, though, the plant is too big to fail. It produces about 8 percent of European steel — and the government estimates that stopping production would cost the Italian economy more than $10 billion a year.

But the environmental concerns are real. Dark plumes of smoke billow from stacks dominating the landscape, while dust from the plant stains the white tombstones in the local cemetery a rusty pink. An ordinance forbids children from playing in unpaved lots. In 2008, a local farmer was forced to slaughter 2,000 sheep after they were deemed contaminated with dioxin.

Some studies have found that cancer rates in Taranto, an ancient harbor in the heel of Italy’s boot, are over 30 percent higher than the national average, and far higher for certain cancers, particularly of the lungs, kidneys and liver, as well as melanomas.

Bruno Ferrante, the president of Ilva, said that the Riva Group, which owns the plant, has been spending from $325 million to $400 million a year to upgrade the plant since it bought it in 1995.

Mr. Ferrante added that cancer rates had been falling recently — government-approved studies bear that out — but acknowledged that there was more to be done. “The pink dust is certainly a problem, and we are aware of it,” he said.

Arguments about the plant’s economic importance fall on deaf ears here. “Health comes first,” Ms. Lumino said, sitting in her apartment with photos of her husband, including one on a chain that hung from her neck. He was one of many Ilva workers sent into early retirement in 1998 after the plant found evidence of asbestos contamination. “If you have money but not your health, what good is it?” she asked.

Ms. Lumino remembered a time before the plant was built. “There were farms, clean air, olive and almond trees,” she said. “We would picnic by the coast every Easter Monday.”

Even with the new decree, the conflict is far from over. The decree orders the Riva Group to invest $3.8 billion to reduce its emissions and bring the plant up to code before 2016, the deadline for other European countries to modernize.

If Riva fails to do so, the new law would give the government more powers to intervene. If Riva is unable to raise enough money to modernize, it could ask for European Union subsidies or sell the plant, which could jeopardize Italy’s European standing.

Brazilian companies are already eying Ilva, according to Italian news media reports. Mr. Ferrante said that Riva had no intention of selling and had a “pretty significant” ability to borrow more money and also draw on European Union cofinancing.

Gaia Pianigiani contributed reporting.

Read More..

Auction for A123 Systems Won by Wanxiang Group of China

DETROIT — Wanxiang Group, a large Chinese auto parts maker, won a high-stakes auction on Sunday for assets of A123 Systems, the bankrupt American battery maker that was a centerpiece of the Obama administration’s loan program for electric vehicles.

A123, which filed for bankruptcy in October after chronic losses and a damaging battery recall, said Wanxiang agreed to pay $256 million for its automotive and commercial operations, including its three factories in the United States.

But the sale excludes A123’s business with the United States government and its military contracts. That portion of the company will be sold to a small energy company based in Illinois, Navitas Systems, for $2.2 million.

Spinning off the government-related business to an American buyer was meant to quell concerns about transferring sensitive military technology to the Chinese, said A123’s chief executive, David Vieau.

“We think we have structured this transaction to address potential national security concerns,” he said in a statement.

From the start, some Republicans in Congress have opposed Wanxiang’s efforts to buy A123, which received a $249 million federal grant to spur domestic manufacturing of batteries.

The deal, which requires approval of a United States bankruptcy judge, would expand Wanxiang’s share of the global market for lithium-ion batteries used in new electric cars like the Fisker Karma.

The A123 sale is the latest in a series of acquisitions of North American energy and manufacturing companies by state-owned and privately held Chinese firms.

Last week, the Canadian government cleared a $15 billion takeover of Nexen, the energy giant, by the state-owned China National Offshore Oil Corporation, or Cnooc.

Wanxiang outbid three other companies in the auction conducted for the bankruptcy court by the Chicago law firm Latham & Watkins. One of the three, Johnson Controls, based in Wisconsin, had tried to buy A123 as it was entering bankruptcy.

But Wanxiang has been in aggressive pursuit of A123 since earlier this year, when the Chinese company first offered emergency loans to keep the failing battery maker afloat.

The president of Wanxiang’s fast-growing American subsidiary, Pin Ni, said the deal would accelerate its growth in the American automotive and alternative-fuel industries. “We think adding A123 to our portfolio of businesses strongly aligns with our strategy of investing in automotive and clean tech industries in the U.S.,” he said.

The subsidiary, Wanxiang America, which is based near Chicago, owns several auto-parts firms and other companies and employs 3,000 American workers.

But the A123 deal is by far its most prominent and riskiest acquisition.

In addition to the approval of the bankruptcy judge, the deal requires the approval of the Committee on Foreign Investment in the United States, a broad-based group led by the Treasury Department that reviews foreign takeovers of American companies.

Mr. Ni expressed confidence that Wanxiang was the best owner for A123, when it would need considerable investment to meet production commitments for automakers like Fisker Automotive and General Motors. “We are committed to making the long-term investments necessary for A123 to be successful,” he said.

A123, which is based in Waltham, Mass., was once one of the most promising recipients of federal loans under the Obama administration’s $2 billion program to stimulate the electric-car industry in the United States.

But consumers have been slow to buy electric vehicles in large numbers, crippling any chance for A123 to make a profit. It also stumbled when its first big shipment of batteries to Fisker proved defective and needed to be recalled.

The company’s bankruptcy became a political issue in the recent presidential campaign, and its potential sale to Wanxiang has fueled concerns that China will benefit from technology developed with financing by American taxpayers.

One member of Congress, Marsha Blackburn, Republican of Tennessee, wrote in a blog, “The Hill,” on Friday that any sale of A123 to the Chinese had “significant implications” for American national interests.

At least two dozen other members of Congress have also opposed the deal, along with the Strategic Materials Advisory Council, a group of former American military and industry leaders.

“The writing is on the wall,” Ms. Blackburn wrote. “The administration must review and then reject any deal involving Wanxiang.”

The bankruptcy auction began last week, when Wanxiang, Johnson Controls, and the electronics makers NEC Corporation of Japan and Siemens AG of Germany submitted secret bids for A123’s assets.

The agreement announced by A123 on Sunday said that Wanxiang made the highest bid, but did not disclose the other offers.

According to the deal, Wanxiang would acquire A123’s automotive, electric-grid and commercial business assets, including all of its technology, products, customers, and factories in Michigan, Massachusetts and Missouri, which will continue to operate.

Wanxiang would also take control of A123’s fledgling operations in China, including its interest in a joint battery venture with Shanghai Automotive, the country’s biggest carmaker.

A123’s much smaller government division, which is concentrated in Michigan, will go to the little-known Navitas Systems.

There was no immediate comment from Navitas, which is described on its Web site as a newly formed company offering integrated design and technology for the energy-storage industry.

Read More..

Morsi Extends Compromise to Egyptian Opposition

Tara Todras-Whitehill for The New York Times

Protesters against President Mohamed Morsi next to a destroyed barricade near the presidential palace in Cairo on Saturday. More Photos »

CAIRO — Struggling to quell violent protests that have threatened to derail a referendum on an Islamist-backed draft constitution, President Mohamed Morsi of Egypt moved Saturday to appease his opponents with a package of concessions hours after state news media reported that he was moving toward imposing a form of martial law to secure the streets and allow the vote.

Mr. Morsi did not budge on a critical demand of the opposition: that he postpone the referendum set for next Saturday to allow a thorough overhaul of the proposed charter, which liberal groups say has inadequate protection of individual rights and provisions that could someday give Muslim religious authorities new influence.

But in a midnight news conference, his prime minister said Mr. Morsi was offering concessions that he had appeared to dismiss out of hand a few days before. The president rescinded most of his sweeping Nov. 22 decree that temporarily elevated his decisions above judicial review and drew tens of thousands of protesters into the streets calling for his downfall. He also offered a convoluted arrangement for the factions to negotiate constitutional amendments this week that would be added to the charter after the vote.

Taken together, the announcements, rolled out over a confusing day, appeared to indicate the president’s determination to do whatever it takes to get to the referendum, which his Islamist supporters say will lay the foundation of a new democracy and a return to stability.

Amid growing concerns among his advisers that the Interior Ministry might be unable to secure either the polls or the institutions of government in the face of renewed violent protests, the state media reported early Saturday that he would soon order the armed forces to keep order and authorize its solders to arrest civilians.

In recent days, mobs have attacked more than two dozen Muslim Brotherhood offices and ransacked the group’s headquarters, and more than seven people have died in street fighting between Islamists and their opponents.

As of early Sunday, Mr. Morsi had not yet formally issued an order calling out the military, raising the possibility that the announcement was intended as a warning to tell his opponents their protests would not derail the vote.

The moves on Saturday offered little hope of fully resolving the standoff, in part because opposition leaders had ruled out — even before his concessions were announced — any rushed attempt at a compromise just days before the referendum.

“No mind would accept dialogue at gunpoint,” said Mohamed Abu El Ghar, an opposition leader, alluding to previously floated ideas about last-minute talks for constitutional amendments.

Nor did Mr. Morsi’s Islamist allies expect his proposals to succeed. Many said they had concluded that much of the secular opposition was primarily interested in obstructing the transition to democracy at all costs, to try to block the Islamists from winning elections. Instead, some of the president’s supporters privately relished the bind they believed Mr. Morsi had built for the opposition by giving in to some demands, forcing their secular opponents to admit they are afraid to take their case to the ballot box.

For now, the military appears to back Mr. Morsi. Soon after the state newspaper Al Ahram suggested the president would impose martial law, a military spokesman read a statement over state television that echoed Mr. Morsi’s own speeches.

The military “realizes its national responsibility for maintaining the supreme interests of the nation and securing and protecting the vital targets, public institutions and the interests of the innocent citizens,” the spokesman said, warning of “divisions that threaten the State of Egypt.”

“Dialogue is the best and sole way to reach consensus that achieves the interests of the nation and the citizens,” he added. “Anything other than that puts us in a dark tunnel with drastic consequences, which is something that we will not allow.”

If Mr. Morsi goes through with the plan, it would represent a historic role reversal. For six decades, Egypt’s military-backed authoritarian presidents used martial law to hold on to power and to jail Islamists like Mr. Morsi, a former leader of the Muslim Brotherhood. It would also come just four months after he managed to pry power out of the hands of the country’s top generals, who had seized control when Hosni Mubarak was ousted last year and then held on to it for three months after Mr. Morsi’s election.

Read More..

Synacor partners with Zynga to bring social games to pay TV

(Reuters) – Synacor Inc, partly owned by Intel Corp, said it partnered with Zynga Inc to allow pay TV and broadband providers offer social games to their customers.

Zynga shares rose about 3 percent to $ 2.30 in premarket trading, while Synacor shares were up about 5 percent at $ 6.60.

Synacor said certain pay-TV subscribers will get in-game currency each month as part of their subscription that can be redeemed for popular Zynga games such as Zynga Poker and FarmVille2.

The partnership comes days after Zynga revised its pact with Facebook Inc to lower its dependence on the social network.

Synacor, which debuted on the Nasdaq in February, offers authentication and management services to companies offering on-demand content, primarily cable and telecom service providers and consumer electronics brands.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Sriraj Kalluvila)

Gaming News Headlines – Yahoo! News

Read More..

Manziel is first freshman to win Heisman Trophy

NEW YORK (AP) — He's Johnny Best in Football now — and a freshman, at that.

Texas A&M quarterback Johnny Manziel became the first newcomer to win the Heisman Trophy, taking college football's top individual prize Saturday night after a record-breaking debut.

Notre Dame linebacker Manti Te'o finished a distant second in the voting and Kansas State quarterback Collin Klein was third. In a Heisman race with two nontraditional candidates, Manziel broke through the class ceiling and kept Te'o from becoming the first purely defensive player to win the award.

"That barrier's broken now," Manziel said. "It's starting to become more of a trend that freshmen are coming in early and that they are ready to play. And they are really just taking the world by storm."

None more than the guy they call Johnny Football.

Manziel drew 474 first-place votes and 2,029 points from the panel of media members and former winners. Te'o had 321 first-place votes and 1,706 points and Klein received 60 firsts and 894 points.

"I have been dreaming about this since I was a kid, running around the backyard pretending I was Doug Flutie, throwing Hail Marys to my dad," he said after hugging his parents and kid sister.

Flutie was one of many Heisman winners standing behind Manziel as he gave his speech on stage at the Best Buy Theater in Times Square.

"I always wanted to be in a fraternity," Manziel said later. "Now I get to be in the most prestigious one in the entire world."

Manziel was so nervous waiting for the winner to be announced, he wondered if the television cameras could see his heart pounding beneath his navy blue pinstripe suit. But he seemed incredibly calm after, hardly resembling the guy who dashes around the football field on Saturday. He simply bowed his head, and later gave the trophy a quick kiss.

"It's such an honor to represent Texas A&M, and my teammates here tonight. I wish they could be on the stage with me," he said with a wide smile, concluding his speech like any good Aggie: "Gig' em."

Just a few days after turning 20, Manziel proved times have truly changed in college football, and that experience can be really overrated.

For years, seniors dominated the award named after John Heisman, the pioneering Georgia Tech coach from the early 1900s. In the 1980s, juniors started becoming common winners. Tim Tebow became the first sophomore to win it in 2007, and two more won it in the next two seasons.

Adrian Peterson had come closest as a freshman, finishing second to Southern California quarterback Matt Leinart in 2004. But it took 78 years for a newbie to take home the big bronze statue.

"It doesn't matter anymore," he said.

Peterson was a true freshman for Oklahoma. As a redshirt freshmen, Manziel attended school and practiced with the team last year, but did not play in any games.

He's the second player from Texas A&M to win the Heisman, joining John David Crow from 1957, and did so without the slightest hint of preseason hype. Manziel didn't even win the starting job until two weeks before the season.

Who needs hype when you can fill-up a highlight reel the way Manziel can?

With daring runs and elusive improvisation, Manziel broke 2010 Heisman winner Cam Newton's Southeastern Conference record with 4,600 total yards, led the Aggies to a 10-2 in their first season in the SEC and orchestrated an upset at then-No. 1 Alabama in November that stamped him as legit.

He has thrown for 3,419 yards and 24 touchdowns and run for 1,181 yards and 19 more scores to become the first freshman, first SEC player and fifth player overall to throw for 3,000 yards and run for 1,000 in a season.

"You can put his numbers up against anybody who has ever played the game," Texas A&M coach Kevin Sumlin said.

Manziel has one more game this season, when the No. 10 Aggies play Oklahoma in the Cotton Bowl on Jan. 4.

As for the Heisman, Manziel said he'd like to keep it right next to his bed.

"But I'm in college. A lot of people come through the house. We live in a college neighborhood. It might not be a good idea. If I can get a case that's indestructible, locked and looks pretty good, we'll see where I keep it," he said.

The resume alone fails to capture the Johnny Football phenomena. At 6-foot-1 and 200 pounds, Manziel is master of the unexpected, darting here and there, turning plays seemingly doomed to failure into touchdowns.

Take, for example, what he did in the first quarter against the Crimson Tide. Manziel took a shotgun snap, stepped up in the pocket as if he was about to take off on another made scramble and ran into the back a lineman. On impact, Manziel bobbled the ball, caught it with his back to the line of scrimmage, turned, rolled the opposite direction and fired a touchdown pass — throwing across his body — to a wide-open receiver.

He might as well have been back in Kerrville, Texas, where he became a hill country star in high school.

His road to college stardom was anything but a clear path.

Manziel competed with two other quarterbacks to replace Ryan Tannehill as the starter this season, the Aggies' first in the SEC and first under Sumlin.

Manziel came out of spring practice as the backup, but became the starter in August.

Still, nobody was hailing him is the next big thing. Did Sumlin think he had a Heisman winner on his hands?

"No," he said emphatically, adding, "Not this year."

Then Manziel started playing and the numbers started piling up.

He also had some struggles against Florida in the season opener and in a home loss to LSU. The question was: Could he do his thing against a top-notch opponent?

The answer came in Tuscaloosa, Ala., on Nov. 10. Going into the matchup against the Crimson Tide, Manziel said he and his teammates heard a lot of doubters.

"You can't do this and you can't do that," he recalled Saturday at the podium

Manziel passed for 253 yards, ran for 92 and the Aggies beat the Tide 29-24. Klein had been the front-runner for most of the season, but Manziel surged after beating 'Bama.

Still, Manziel was still something of a mystery man. Sumlin's rules prohibit freshmen from being available to the media. Manziel was off-limits, but not exactly silent.

Manziel gave glimpses of himself on social media — including some memorable pictures of him dressed up as Scooby-Doo for Halloween with some scantily clad young women.

Before he became a celebrity, Manziel got himself into some serious trouble. In June, he was arrested in College Station after police said he was involved in a fight and produced a fake ID. He was charged with disorderly conduct and two other misdemeanors.

After the season, Texas A&M took the reins off Manziel and made him available for interviews, allowing him to tell his own tale.

Though in the end, his play said it all.

___

Follow Ralph D. Russo at www.Twitter.com/ralphdrussoap

Read More..

Doping at U.S. Tracks Affects Europe’s Taste for Horse Meat

PARIS — For decades, American horses, many of them retired or damaged racehorses, have been shipped to Canada and Mexico, where it is legal to slaughter horses, and then processed and sold for consumption in Europe and beyond.

Christinne Muschi for The New York Times

A slaughterhouse in Saint-André-Avellin, Quebec, where meat is processed for sale in Europe.

Lately, however, European food safety officials have notified Mexican and Canadian slaughterhouses of a growing concern: The meat of American racehorses may be too toxic to eat safely because the horses have been injected repeatedly with drugs.

Despite the fact that racehorses make up only a fraction of the trade in horse meat, the European officials have indicated that they may nonetheless require lifetime medication records for slaughter-bound horses from Canada and Mexico, and perhaps require them to be held on feedlots or some other holding area for six months before they are slaughtered.

In October, Stephan Giguere, the general manager of a major slaughterhouse in Quebec, said he turned away truckloads of horses coming from the United States because his clients were worried about potential drug issues. Mr. Giguere said he told his buyers to stay away from horses coming from American racetracks.

“We don’t want them,” he said. “It’s too risky.”

The action is just the latest indication of the troubled state of American racing and its problems with the doping of horses. Some prominent trainers have been disciplined for using legal and illegal drugs, and horses loaded with painkillers have been breaking down in arresting numbers. Congress has called for reform, and state regulators have begun imposing stricter rules.

But for pure emotional effect, the alarm raised in the international horse-meat marketplace packs a distinctive punch.

Some 138,000 horses were sent to Canada or Mexico in 2010 alone to be turned into meat for Europe and other parts of the world, according to a Government Accountability Office report. Organizations concerned about the welfare of retired racehorses have estimated that anywhere from 10 to 15 percent of the population sent for slaughter may have performed on racetracks in the United States.

“Racehorses are walking pharmacies,” said Dr. Nicholas Dodman, a veterinarian on the faculty of Tufts University and a co-author of a 2010 article that sought to raise concerns about the health risks posed by American racehorses. He said it was reckless to want any of the drugs routinely administered to horses “in your food chain.”

Horses being shipped to Mexico and Canada are by law required to have been free of certain drugs for six months before being slaughtered, and those involved in their shipping must have affidavits proving that. But European Commission officials say the affidavits are easily falsified. As a result, American racehorses often show up in Canada within weeks — sometimes days — of their leaving the racetrack and their steady diets of drugs.

In October, the European Commission’s Directorate General for Health and Consumers found serious problems while auditing the operations of equine slaughter facilities in Mexico, where 80 percent of the horses arrive from the United States. The commission’s report said Mexican officials were not allowed to question the “authenticity or reliability of the sworn statements” about the ostensibly drug-free horses, and thus had no way of verifying whether the horses were tainted by drugs.

“The systems in place for identification, the food-chain information and in particular the affidavits concerning the nontreatment for six months with certain medical substances, both for the horses imported from the U.S. as well as for the Mexican horses, are insufficient to guarantee that standards equivalent to those provided for by E.U. legislation are applied,” the report said.

The authorities in the United States and Canada acknowledge that oversight of the slaughter business is lax. On July 9, the United States Food and Drug Administration sent a warning letter to an Ohio feedlot operator who sells horses for slaughter. The operator, Ronald Andio, was reprimanded for selling a drug-tainted thoroughbred horse to a Canadian slaughterhouse.

The Canadian Food Inspection Agency had tested the carcass of the horse the previous August and found the anti-inflammatory drug phenylbutazone in the muscle and kidney tissues. It also discovered clenbuterol, a widely abused medication for breathing problems that can build muscle by mimicking anabolic steroids.

Because horses are not a traditional food source in the United States, the Food and Drug Administration does not require human food safety information as it considers what drugs can be used legally on horses. Patricia El-Hinnawy, a spokeswoman for the agency, said agency-approved drugs intended for use in horses carried the warning “Do not use in horses intended for human consumption.”

She also said the case against Mr. Andio remained open.

“On the warning letter, the case remains open and no further information can be provided at this time,” Ms. El-Hinnawy said.

Read More..