BlackBerry 10’s Debut Is a Critical Day for Research in Motion





OTTAWA — Research in Motion’s introduction on Wednesday of a new BlackBerry phone will be the most important event in the company’s history since 1996, when its founders showed investors a small block of wood and promised that a wireless e-mail device shaped like that would change business forever.




Now with just 4.6 percent of the global market for smartphones in 2012, according to IDC, RIM long ago exchanged dominance for survival mode. On Wednesday, the company will introduce a new line of smartphones called the BlackBerry 10 and an operating system of the same name that Thorsten Heins, the president and chief executive of RIM, says will restore the company to glory.


But Frank Mersch, who became one of RIM’s earliest investors after seeing the block of wood, is far less excited by what he sees this time around.


“You’re in a very, very competitive market and you’re not the leader,” Mr. Mersch, now the chairman and a vice president at Front Street Capital in Toronto, said of RIM. “You have to ask: ‘At the end of the day are we really going to win?’ I personally think the jury’s out on that.”


The main elements of the new phones and their operating system are already well known. Mr. Heins and other executives at RIM have been demonstrating the units for months to a variety of audiences. App developers received prototype versions as far back as last spring.


While analysts and app developers may be divided about the future of RIM, there is a consensus that BlackBerry 10, which arrives more than year behind schedule, was worth the wait.


Initially RIM will release two variations of the BlackBerry 10, one a touch-screen model that resembles many other phones now on the market. The other model is a hybrid with a keyboard similar to those now found on current BlackBerrys as well as a small touch screen.


The real revolution, though, may be in the software that manages a person’s business and personal information. It is clearly designed with an eye toward retaining and, more important, luring back, corporate users.


Corporate and government information technology managers will be able to segregate business-related apps and data on BlackBerry 10 handsets from users’ personal material through a system known as BlackBerry Balance. It will enable an I.T. manager to, among other things, remotely wipe corporate data from fired employees’ phones while leaving the newly jobless workers’ personal photos, e-mails, music and apps untouched. The system can also block users from forwarding or copying information from the work side of the phone.


Messages generated by e-mail, Twitter, Facebook, instant messaging and LinkedIn accounts are automatically consolidated into a single in-box that RIM calls BlackBerry Hub.


Charles Golvin, an analyst with Forrester Research, called the new phones “beautiful” and described the operating system as “a giant leap forward” from RIM’s current operating system. Ray Sharma, who followed RIM’s glory years as a financial analyst but who now runs XMG Studio, a mobile games developer in Toronto, has been similarly impressed.


But both men are among many analysts who question the ability of BlackBerry 10, whatever its merits, to revive RIM’s fallen fortunes.


“If it’s good, it will help inspire the upgrade cycle,” Mr. Sharma said. “But it has to be great in order to inspire touch-screen users to come back. If it’s good, not great, I will be concerned.”


Mr. Golvin was more blunt. “They’ll need to prove themselves in the face of a simultaneous onslaught of marketing from Microsoft, not to mention the continued push from Apple plus Google and its Android partners,” he wrote. “This is a gargantuan challenge for a company of RIM’s size.”


In the year since he took over from the founders, Jim Balsillie and Mike Lazaridis, Mr. Heins has certainly remade RIM. He cut 5,000 jobs in a program to reduce operating costs by about $1 billion a year. Along the way, he also replaced RIM’s senior management and straightened out its balance sheet. While unprofitable, RIM remains debt-free and holds $2.9 billion in cash.


With BlackBerry 10, RIM not only started over with its operating system, it also rebuilt the company through acquisitions. Its core operating system comes from QNX Software Systems, the design of the user interface is largely the work of the Astonishing Tribe in Sweden while other main components, like the touch-screen technology, came from smaller companies that are now part of RIM.


Integrating all of those acquisitions, analysts and former RIM employees say, added to the delays that plagued BlackBerry 10.


Now that the new phones are finally here, Mr. Heins is counting on RIM’s remaining base of 79 million users globally to eagerly upgrade. But where those customers reside may be as important in their numbers in determining the success of that plan.


In the United States, which leads the world in setting smartphone trends, about 11 million BlackBerry users switched to other phones between 2009 and the middle of last year, according to an analysis by Horace Dediu on Asymco, a wireless industry blog he founded.


Until the final months of 2012, RIM continued to increase its subscriber base through sales of low-cost handsets to less developed countries like Nigeria and Indonesia. Although BlackBerry 10 will be made available worldwide, the initial phones will be too expensive for a majority of BlackBerry fans in those regions.


RIM may also have confused its loyalists, particularly in North America and Europe, in the run-up to the BlackBerry 10 debut. Many of those users stuck with BlackBerrys because of their physical keyboards. But public demonstrations for BlackBerry 10 were centered on the touch-screen-only version and its virtual keyboard.


While some corporations have remained loyal to BlackBerry, RIM not only has to sell them on the new handsets, it also must persuade them to upgrade server software to accommodate the new operating system, a costly and time-consuming process. Companies whose employees continue to use older BlackBerrys will have to run two separate BlackBerry servers.


Mr. Heins’s pitch to those corporations is that the BlackBerry 10 server software will also allow them to manage and control data on employees’ Android phones and iPhones. But any corporation or organization that allows those phones to connect with its systems long ago installed mobile device management software from other companies, including Good Technology and SAP. RIM is likely to find that the competition in device management software is as severe as it is in the handset business.


This article has been revised to reflect the following correction:

Correction: January 30, 2013

An earlier version of this story incorrectly stated that Frank Mersh is the chairman and a vice president at First Street Capital in Toronto. Mr. Mersh is the chairman and a vice president at Front Street Capital in Toronto.



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Mayoral debate focuses on city's troubled finances









In the highest-profile debate so far in the Los Angeles mayoral race, three longtime city officials defended their records Monday night as two long-shot challengers accused them of putting the city on a path to insolvency.


The city's chronic budget shortfalls dominated the event at UCLA's Royce Hall, televised live on KNBC-TV Channel 4. Entertainment lawyer Kevin James and technology executive Emanuel Pleitez sought to maximize the free media exposure, portraying themselves as fresh alternatives to business as usual at City Hall.


James, a former radio talk-show host, described himself as an independent and accused rivals Wendy Greuel, Eric Garcetti and Jan Perry — all veteran elected officials — of being cozy with unions representing the city workforce.





"Bankruptcy doesn't happen overnight," said James, the only Republican in the race. "This happened over a period of time and it happened because of a series of bad decisions."


Pleitez struck a similar note.


"Our politicians in the last decade made decisions on numbers they didn't understand," he said.


"I'm the only one that has worked in the private sector and on fiscal and economic policies at the highest levels," Pleitez said, citing his experience as a special assistant to economist Paul Volcker on President Obama's Economic Recovery Advisory Board.


Greuel, Garcetti and Perry, in turn, pledged to show fiscal restraint as the city grapples with projected budget shortfalls totaling more than $1 billion over the next four years.


City Controller Greuel cited the "waste, fraud and abuse" her office's audits have identified at City Hall, saying they demonstrate her independence.


"As mayor of Los Angeles, I get not only being the fiscal watchdog, and showing where we can find this money, and knowing where the bodies are buried," said Greuel, who served on the City Council for seven years. "I've learned as city controller, you don't always make friends when you highlight what can be done better."


Garcetti, a councilman for more than a decade, said he had a record of "not just talking about pension reform, but delivering on it." When tax collections dried up in the recession, he said, the council and mayor eliminated 5,000 jobs and negotiated a deal with unions requiring some city workers to contribute to their health and pension benefits.


"Those are the things that kept us away from our own fiscal cliff," he said.


Perry also stressed her support for increasing worker contributions to health and retirement benefits.


"This is about long-term survival," she said.


By the normal standards of election campaigns, it was a remarkably genteel debate, at least among the three city officials.


Only Perry attacked her rivals, and even then, not by name.


Recalling her work with Garcetti and Greuel in talks with city unions, she faulted them for engaging in "side meetings and side negotiations," saying she was more transparent.


"As mayor, I will make sure that practice stops, that everything is done on the record — that all employees are treated fairly and all employees are given the same information," Perry said.


Neither Greuel nor Garcetti answered the attack.


As in previous forums, the most obvious contrasts among the candidates Monday night were in biography and style — rather than policy positions.





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Yahoo sees revenue climb this year, but long road ahead






(Reuters) – Yahoo Inc forecast a modest uptick in revenue for the current year as it revamps its family of websites but Chief Executive Marissa Mayer warned it would be a long journey to revive the Internet company‘s fortunes.


In Yahoo‘s first financial outlook since Mayer became CEO in July, the company outlined a plan to trigger a “chain reaction of growth” by overhauling a dozen of its online services to increase the amount of time users spent on its websites.






It also pointed to strength in its search advertising business and progress made in improving its internal operations.


Yahoo’s shares were 3 percent higher in after hours trade after the revenue projection was disclosed during an analysts conference call, shedding some ground after earlier rising as much as 4.5 percent.


But weakness in Yahoo’s display ad business, which accounts for roughly 40 percent of the company’s total revenue, caught some analysts by surprise.


“While the road to growth is certain, it will not be immediate,” said Mayer, a former Google Inc executive and Yahoo’s third full-time CEO since September 2011.


Yahoo said that revenue, excluding fees it pays to partner websites, will range between $ 4.5 billion and $ 4.6 billion in 2013, implying an annual growth rate of 0.7 percent to 3 percent.


Finance Chief Ken Goldman also warned investors to expect “an investment phase” in the first half of the year, which he said would impact profit margins.


“What was clear from the call is that this is a long-term turnaround story,” said Macquarie Research analyst Ben Schachter. “We shouldn’t expect anything to just snap back and correct itself.”


During the fourth quarter, Yahoo’s net revenue increased 4 percent year-on-year to $ 1.22 billion, as search advertising sales offset a 10 percent decline in the number of display ads sold on Yahoo’s core properties.


Mayer said the decline was the result of less activity by visitors to its popular websites, such as its Web email service, and to a lesser extent due to users accessing the Web on smartphones, where Yahoo’s ad business is not as strong.


Efforts to revamp its mobile properties, begun last year with a redesign of the photo-sharing service Flickr, remain on track, said Mayer, noting that Yahoo now has 200 million monthly mobile users.


“From a monetization perspective this is still a very nascent source of revenue for us. With any platform shift, revenue always followed users and mobile will be no different,” she said.


Mayer took over after a tumultuous period at Yahoo in which former CEO Scott Thompson resigned after less than 6 months on the job over a controversy about his academic credentials and in which Yahoo co-founder Jerry Yang resigned from the board and cut his ties with the company.


Yahoo’s stock has risen roughly 30 percent since Mayer took the helm, reaching its highest levels since 2008.


Part of the stock’s rise has been driven by significant stock buybacks, using proceeds from a $ 7.6 billion deal to sell half of its 40 percent stake in Chinese Internet company Alibaba Group, said Sameet Sinha, an analyst with B. Riley Caris.


Yahoo said it repurchased $ 1.5 billion worth of shares during the fourth quarter.


The company’s fourth-quarter net income was $ 272.3 million, or 23 cents per share, versus $ 295.6 million, or 24 cents per share in the year-ago period.


Excluding certain items, Yahoo said it had earnings per share of 32 cents, versus the average analyst expectation of 28 cents according to Thomson Reuters I/B/E/S.


For the first quarter, Yahoo said it expects revenue, excluding partner website fees, of $ 1.07 billion to $ 1.1 billion, trailing the $ 1.1 billion that Wall Street analysts expect on average.


Shares of Yahoo were up 59 cents at $ 20.90 in after-hours trading on Monday.


(Reporting by Alexei Oreskovic; Editing by Phil Berlowitz and Edwina Gibbs)


Tech News Headlines – Yahoo! News





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How Fox Searchlight made the biggest deal at Sundance $9.75 million on an egg sandwich






NEW YORK (TheWrap.com) – The biggest sale at Sundance this year – “The Way, Way Back” – began with a promise and ended with a fried egg sandwich.


Producer Kevin J. Walsh, a former assistant to Scott Rudin, told the agents selling his movie that he’d make everyone food if they closed a big deal. But before he could cook, a bidding war broke out that would pit the favored Fox Searchlight against a half-dozen other studios, including Lionsgate, Paramount, Magnolia, FilmDistrict and Open Road.






Fox Searchlight won out and paid one of the highest prices for a Sundance movie in recent years – $ 9.75 million – for the story of an alienated 14-year-old (“The Killing’s” Liam James) on summer vacation.


The one big thing in their favor: Once “The Way, Way Back” premiered on Monday, everyone knew it would sell. The film not only drew a standing ovation, but almost every distributor stayed through the Q&A session with the filmmakers – a “rare” occasion, as one person close to the deal told TheWrap.


Fox Searchlight was an early starter out of the gate. It had already won an Oscar with Rash and Faxon, who co-wrote Alexander Payne’s “The Descendants.”


And at one point it was going to produce the film, back when Shawn Levy was going to direct and it was called “The Way Back.” Rash and Faxon’s script had charted on the 2007 Black List, which ranks the industry’s favorite unproduced screenplays.


The project stalled. Levy moved on to other films, and the script bounced around until Walsh came aboard as producer and decided Faxon and Rash should direct.


In hopes of sealing the deal, Searchlight sent more than a dozen of its executives to the Sundance debut, many of whom began firing off ardent emails to the filmmakers after they had seen it.


“They came wanting to love that movie, and they were going overboard in an impressive way,” a person with knowledge of the deal told TheWrap. “Multiple people at the company talked about how much they loved the film. It still didn’t mean they’d get it. Sometimes you have a distributor who does all that to justify lowballing.”


But Searchlight didn’t have a clear field. As the filmmakers attended an after party at the Grey Goose Blue Door on Main Street, several other distributors circled. These ranged from the massive, Paramount and Warner Bros., to the very large Lionsgate, to the medium-sized FilmDistrict, Open Road and Magnolia.


Another factor was that rival agencies CAA and WME had to play nice. The movie was written and directed by CAA‘s Faxon and Rash and stars WME clients Steve Carell and Toni Collette.


Around 7 p.m., the dealmakers retired to the WME house, where the discussions began. Alexis Garcia, Deb McIntosh and Graham Taylor from WME would handle the deal with Laura Lewis and Dina Kuperstock from CAA.


“We had some in-person meetings, some phone calls and a lot of the offers were apples and oranges,” Tom Rice of Sycamore Pictures, which produced and co-financed the movie with OddLot Entertainment, told TheWrap.


Fox Searchlight was an early starter out of the gate. It had already won an Oscar with Rash and Faxon, who co-wrote Alexander Payne’s “The Descendants.”


And at one point it was going to produce the film, back when Shawn Levy was going to direct and it was called “The Way Back.” Rash and Faxon’s script had charted on the 2007 Black List, which ranks the industry’s favorite unproduced screenplays.


The project stalled. Levy moved on to other films, and the script bounced around until Walsh came aboard as producer and decided Faxon and Rash should direct.


In hopes of sealing the deal, Searchlight sent more than a dozen of its executives to the Sundance debut, many of whom began firing off ardent emails to the filmmakers after they had seen it.


“They came wanting to love that movie, and they were going overboard in an impressive way,” a person with knowledge of the deal told TheWrap. “Multiple people at the company talked about how much they loved the film. It still didn’t mean they’d get it. Sometimes you have a distributor who does all that to justify lowballing.”


But Searchlight didn’t have a clear field. As the filmmakers attended an after party at the Grey Goose Blue Door on Main Street, several other distributors circled. These ranged from the massive, Paramount and Warner Bros., to the very large Lionsgate, to the medium-sized FilmDistrict, Open Road and Magnolia.


Another factor was that rival agencies CAA and WME had to play nice. The movie was written and directed by CAA‘s Faxon and Rash and stars WME clients Steve Carell and Toni Collette.


Around 7 p.m., the dealmakers retired to the WME house, where the discussions began. Alexis Garcia, Deb McIntosh and Graham Taylor from WME would handle the deal with Laura Lewis and Dina Kuperstock from CAA.


“We had some in-person meetings, some phone calls and a lot of the offers were apples and oranges,” Tom Rice of Sycamore Pictures, which produced and co-financed the movie with OddLot Entertainment, told TheWrap.


“When we went over there, we didn’t tell them it was exclusive. But quickly getting there, it was clear they were intending to make it work as quickly as possible,” an individual close to the deal said. “And it still dragged out for several hours.”


As they haggled over numbers, the two sides moved in and out of the condo. The agents would move while Fox talked about it. The Fox team had to move when the agents wanted to call people back at the WME house.


Meanwhile, over the night, Searchlight increased its offer significantly. Making a big bet on the first-time directors, $ 9.75 million, at 4:30 a.m. it finally closed one of the richest deals in Sundance history.


Fox Searchlight considers Jim and Nat a real part of their family,” Rice said. “They made their interest known for a long time.”


The deal done, the negotiating team headed back to the WME house to play pool, listen to music, drink champagne and down vodka. Whiskey would have been ideal given the frigid weather, but Utah’s Byzantine liquor laws had dashed the hopes of a late-night liquor run. The local whiskey from High West Distillery would have to wait.


“We didn’t plan ahead for celebrations, and it isn’t too easy to improvise in Park City,” one person there recalled.


With a couple hours until the papers would be signed, pre-planned improvisation would have to do.


And Walsh made good on his promise: Fried egg sandwiches with asparagus.


“We cracked a bottle of champagne at about 6 a.m.,” he said. Good morning.


Movies News Headlines – Yahoo! News




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Rescuer Appears for New York Downtown Hospital





Manhattan’s only remaining hospital south of 14th Street, New York Downtown, has found a white knight willing to take over its debt and return it to good health, hospital officials said Monday.




NewYork-Presbyterian Hospital, one of New York City’s largest academic medical centers, has proposed to take over New York Downtown in a “certificate of need” filed with the State Health Department. The three-page proposal argues that though New York Downtown is projected to have a significant operating loss in 2013, it is vital to Lower Manhattan, including Wall Street, Chinatown and the Lower East Side, especially since the closing of St. Vincent’s Hospital after it declared bankruptcy in 2010.


The rescue proposal, which would need the Health Department’s approval, comes at a precarious time for hospitals in the city. Long Island College Hospital, just across the river in Cobble Hill, Brooklyn, has been threatened with closing after a failed merger with SUNY Downstate Medical Center, and several other Brooklyn hospitals are considering mergers to stem losses.


New York Downtown has been affiliated with the NewYork-Presbyterian health care system while maintaining separate operations.


“We are looking forward to having them become a sixth campus so the people in that community can continue to have a community hospital that continues to serve them,” Myrna Manners, a spokeswoman for NewYork-Presbyterian, said.


Fred Winters, a spokesman for New York Downtown, declined to comment.


Presbyterian’s proposal emphasized that it would acquire New York Downtown’s debt at no cost to the state, a critical point at a time when the state has shown little interest in bailing out failing hospitals.


The proposal said that if New York Downtown were to close, it would leave more than 300,000 residents of Lower Manhattan, including the financial district, Greenwich Village, SoHo, the Lower East Side and Chinatown, without a community hospital. In addition, it said, 750,000 people work and visit in the area every day, a number that is expected to grow with the construction of 1 World Trade Center and related buildings.


The proposal argues that New York Downtown is essential partly because of its long history of responding to disasters in the city. One of its predecessors was founded as a direct result of the 1920 terrorist bombing outside the J. P. Morgan Building, and the hospital has responded to the 1975 bombing of Fraunces Tavern, the 1993 and 2001 attacks on the World Trade Center, and, this month, the crash of a commuter ferry from New Jersey.


Like other fragile hospitals in the city, New York Downtown has shrunk, going to 180 beds, down from the 254 beds it was certified for in 2006, partly because the more affluent residents of Lower Manhattan often go to bigger hospitals for elective care.


The proposal says that half of the emergency department patients at New York Downtown either are on Medicaid, the program for the poor, or are uninsured.


NewYork-Presbyterian would absorb the cost of the hospital’s maternity and neonatal intensive care units, which have been expanding because of demand, but have been operating at a deficit of more than $1 million a year, the proposal said.


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DealBook Column: Mary Jo White, Nominee for S.E.C.'s 'New Sherrif,' Has Worn Banks' Hat

“You don’t want to mess with Mary Jo.”

That’s what President Obama said about his pick to run the Securities and Exchange Commission, Mary Jo White. The nomination of Ms. White, a former prosecutor who took on the terrorists behind the bombing of the World Trade Center in 1993 and the Mafia boss John Gotti, was meant to signal that the S.E.C. would be getting tough on Wall Street. CBS called her “Wall Street’s new sheriff.” The Wall Street Journal said she would be “putting a tougher face on an agency still tainted by embarrassing enforcement missteps in the run-up to the financial crisis.” The New York Times said her appointment represented a “renewed resolve to hold Wall Street accountable.”

Hold on.

While Ms. White is a decorated prosecutor, she has spent the last decade vigorously defending — and billing by the hour — Wall Street’s biggest banks, as a rainmaking partner at the white-shoe law firm Debevoise & Plimpton. The average partner at the firm was paid $2.1 million a year, according to American Lawyer; but she was no average partner, very likely being paid at least double that. Her husband, John W. White, is a corporate partner at Cravath, Swaine & Moore. He counts JPMorgan Chase, Credit Suisse and UBS as clients. The average partner at Cravath makes $3.1 million. He, too, was a former official at the S.E.C. — he left Cravath to run the corporate division of the S.E.C. starting in 2006 just in time for the run-up to the financial crisis. He left in November 2008, a month after the bank bailouts, to return to Cravath.

It seems Mr. and Ms. White have made a fine art of the revolving door between government and private practice.

So how conflicted is Ms. White? Let’s count the ways.

They are well documented: she was JPMorgan Chase’s go-to lawyer for many of the cases brought against it relating to the financial crisis. She was arm-in-arm with Kenneth D. Lewis, Bank of America’s former chief executive, keeping him out of trouble when the New York attorney general accused Mr. Lewis of defrauding investors by not disclosing the losses at Merrill Lynch before completing Bank of America’s acquisition of the firm. (And empirically, Mr. Lewis did keep crucial information about the deal from investors.)

This is what she had to say about Mr. Lewis, in a court filing submitted on his behalf: “Some have looked to assign blame for every aspect of the financial crisis, even where there is no evidence of misconduct. This case is a product of that dynamic and does not withstand either legal or factual scrutiny.” It was a refrain she often made about her clients related to the financial crisis.

And then there was Senator Bill Frist, the Republican from Tennessee, whom she successfully represented when the S.E.C. and the Justice Department started an investigation into whether he was involved in insider trading in shares of HCA, the hospital chain. She persuaded them to shut down the investigation.

She also worked with Siemens, the German industrial giant, when it pleaded guilty to charges of bribery, paying a record $1.6 billion penalty.

And then, of course, there was John Mack. She worked for the board of Morgan Stanley during a now well-publicized 2005 investigation into insider trading that ended soon after she made a phone call to the S.E.C. Using her connections at the top of the agency, she dialed up Linda Thomsen, then the commission’s head of enforcement, to find out whether Mr. Mack, who was being considered for Morgan Stanley’s chief executive position, was being implicated. He ultimately wasn’t. As the Huffington Post pointed out in a recent article about Ms. White, Robert Hanson, an S.E.C. supervisor, later testified, “It is a little out of the ordinary for Mary Jo White to contact Linda Thomsen directly, but that White is very prestigious and it isn’t uncommon for someone prominent to have someone intervene on their behalf.”

All of Ms. White’s previous engagements create not only an “optics” problem, but a practical, on-the-job problem. She will most likely need to recuse herself from just about anything related to her previous work.

“I will not for a period of two years from the date of my appointment participate in any particular matter involving specific parties that is directly and substantially related to my former employer or former clients, including regulations and contracts,” is the language in an ethics pledge that she will have to agree to follow.

Some appointees, including Mary L. Schapiro, the former chairwoman of the S.E.C., recused themselves from any involvement in work that was related to a previous employer even after the two-year moratorium. Gary Gensler, the chairman of the Commodity Futures Trading Commission, recused himself from the investigation into MF Global because of his previous employment at Goldman Sachs, where Jon Corzine was the firm’s head, even though it had been years since the two had worked together.

And then there is the issue of Mr. White’s husband, who will have a continuing role at Cravath, one of the most pre-eminent firms in the country, whose clients include some of the nation’s largest corporations.

“This president has adopted the toughest ethics rules of any administration in history,” said Amy Brundage, a White House spokeswoman, “and this nominee is no exception. As S.E.C. chair, Mary Jo White will be in complete compliance with all ethics rules.”

None of these conflicts gets at another potential problem for Ms. White. The job of chairwoman of S.E.C. isn’t simply about enforcement; she has a deputy for that. The biggest challenge anyone who takes the job will have to confront over the next several years will be executing and enforcing provisions of Dodd-Frank and working to regulate electronic trading — something that even the most sophisticated financial professionals, let alone a lawyer, often have a tough time understanding. She has zero experience in this area.

Of course, there can always be a value to inviting a onetime rival onto the team.

“I believe she is one of those people who will understand that her public role will be very, very different than her role as a defense lawyer,” Dennis M. Kelleher of Better Markets, a watchdog group, told me. “I don’t think she’s going to be like so many others who don’t get that they have a very different role when they hold high public office.

“No question, she’s said some things that are controversial and questionable,” Mr. Kelleher said. “Moreover, I hope and expect that she will be asked publicly about them in the confirmation process and that she will have convincing answers.”

Of course, if she is confirmed, we must all hope that she can put her previous client relationships behind her and work for her new client — us.

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Hillary Clinton's legacy at State: Splendid but not spectacular









WASHINGTON — Hillary Rodham Clinton leaves her post as secretary of State next month with a split judgment on her diplomatic career: She's won rave reviews from the American public and the president, but maybe not a prominent place in the diplomatic history books.


Job approval ratings for the former senator and first lady are at stratospheric levels, suggesting that her four years as chief U.S. diplomat could be an important asset if she runs for president in 2016.


But scholars and diplomatic insiders say she has never dominated issues of war and peace in the manner of predecessors Dean Acheson or Henry Kissinger, or laid down an enduring diplomatic doctrine.





President Obama has tightly controlled foreign policy in the last four years — more so even than his recent predecessors. Clinton has had a seat at the table on every key issue, officials say, but she did not "own" any of them.


She devoted long hours to signatures issues, including empowerment of women and girls, gay rights, Third World development, health and Internet freedoms. Clinton lent her support to a wide range of new projects and organizations, and she appointed new officials in the State Department to shepherd them. Some of these may eventually have huge effects, but many are at an early stage.


At the same time, the most important and toughest foreign policy issues of the day — Iran, North Korea, Afghanistan-Pakistan, the Arab-Israeli standoff — weren't resolved during the four years. Some grew more intractable. Though none of that may be Clinton's fault, the lack of diplomatic breakthroughs on her watch limits her legacy.


"She's coming away with a stellar reputation that seems to have put her almost above criticism," said Aaron David Miller, a longtime U.S. peace negotiator who is a vice president at the Woodrow Wilson International Center for Scholars. "But you can't say that she's really led on any of the big issues for this administration or made a major mark on high strategy."


Expectations ran high that Clinton would be a heavyweight — maybe even a "co-president" on foreign policy — from the time Obama picked his bitter rival in the 2008 Democratic presidential primary campaign to take the Cabinet's senior spot. She had star power from 20 years in national life that dazzled foreign audiences and guaranteed worldwide attention to whatever issue she focused on.


"She's the first secretary who's also been a global rock star," said a senior State Department official who was not authorized to be quoted by name. "It's allowed her to raise issues on the global agenda in a way that no one before her has been able to do."


Obama praised her performance Sunday in a joint interview with Clinton that he proposed to CBS' "60 Minutes." Obama described her as "one of our finest" secretaries of State and one of his most important advisors on a range of issues, including Iraq, Afghanistan, Libya and Al Qaeda.


In the interview, Clinton brushed aside questions about her future in politics and pronounced her health as good — although she said she had some "lingering effects" from a concussion she suffered in December when she fainted and hit her head after suffering from a virus that left her dehydrated. The concussion led to a blood clot behind her right ear, for which she was hospitalized.


"The doctors tell me that will all recede," she said, referring to the continued symptoms. "And so, thankfully, I'm looking forward to being at full speed."


As secretary of State, Clinton has shared Obama's democratic take on the proper role of American diplomats, believing that the world is no longer a place where a handful of powers can dictate the terms of the world order. Rather, the job of U.S. diplomats is collaborating with dozens of other countries in the "constant gardening and tending" of institutions and projects that advance common goals, the senior State Department official said.


Foreign audiences warmed to this attitude, which they found appealing after eight years of a George W. Bush administration many associated with a go-it-alone approach. As they did, the American image abroad improved.


At the same time, Clinton quickly removed a potential internal stumbling block, insisting on no infighting between her loyalists at the State Department and Obama's team. Former President Bill Clinton's kibitzing on foreign policy never became the problem some had predicted.


A hard worker and team player, Clinton won praise from many in Obama's circle who had initially doubted her.


But as time passed, it became clear that she wouldn't have the lead role on key issues of war and peace.


Clinton's original plan was to have three powerful "special envoys" in charge of key security issues and reporting to her — a flow chart that would have enabled her to tightly control the biggest security issues.


But Richard C. Holbrooke, in charge of the Afghanistan-Pakistan militant threat, was marginalized after clashing with White House officials. Former Senate Majority Leader George J. Mitchell resigned in May 2011 after the painful collapse of the administration's opening Middle East peace initiative; and diplomat Dennis Ross, the envoy for Iran, moved to the White House in June 2009 to better help manage the range of Mideast problems that were bubbling over.


"She was a fully functioning member of the team," said a former administration official, who asked to remain anonymous speaking about a former colleague. "But not a first among equals."





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Pentagon to boost cybersecurity force






WASHINGTON (Reuters) – The Pentagon plans to assign significantly more personnel in coming years to counter increasing threats against U.S. government computer networks and conduct offensive operations against foreign foes, a U.S. defense official said on Sunday.


The plan, which would increase both military and civilian staffing at U.S. Cyber Command, comes as the Pentagon moves toward elevating the new command and putting it on the same level as the major combatant commands.






The official said no formal decisions had been made on the expanding staffing levels or changing Cyber Command into a “unified” command like U.S. Strategic Command, which currently oversees cyber command and the U.S. nuclear weapons arsenal.


Any changes to the combatant command structure would be made based on strategic and operational needs, and take into account the need for efficient use of taxpayer dollars, said the official, who was not authorized to speak publicly.


The Pentagon was working closely with U.S. Cyber Command and the major military commands to develop “the optimum force structure for successfully operating in cyberspace,” the official said.


The Washington Post, quoting senior defense officials, reported late Sunday that the Pentagon had decided to expand Cyber Command’s current staffing level of 900 to 4,900 in coming years.


The official confirmed that Cyber Command planned to expand its force significantly, but said the specific numbers cited by the Post were “pre-decisional.”


The newspaper said senior Pentagon officials had agreed to increase the force late last year amid a string of attacks, including one that wiped out more than 30,000 computers at a Saudi Arabian state oil company. it said


The plan calls for creating three types of force under the Cyber Command, said the defense official.


“National mission forces,” would protect computer systems that undergird electrical grids and other kinds of infrastructure. “Combat mission forces,” would help commanders abroad execute attacks or other offensive operations, while “cyber protection forces,” would focus on protecting the Defense Department’s own systems.


Details were still being worked out, the official said.


(Reporting by Sarah Lynch and Andrea Shalal-Esa; Editing by David Brunnstrom)


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‘Argo’ on a roll with big win at SAG Awards






LOS ANGELES (AP) — A few weeks ago, the Oscar race looked wide open. The stately, historical “Lincoln” seemed like the safe and likely choice, with the provocative “Zero Dark Thirty” and the quirky and inspiring “Silver Linings Playbook” very much in the mix for the Academy Award for best picture.


But now, an “Argo” juggernaut — an “Argo”-naut, if you will — seems to be rolling along and gathering momentum as we head toward Hollywood’s top prize.






The international thriller from director Ben Affleck, who also stars as a CIA operative orchestrating a daring rescue during the 1979 Iranian hostage crisis, received the top honor of best ensemble cast in a movie at Sunday night’s Screen Actors Guild Awards, their equivalent of the best-picture Oscar. It’s a decent indicator of eventual Academy Awards success, with the two matching up about half the time.


The film, which also stars John Goodman and Alan Arkin as Hollywood veterans who help stage a fake movie as a cover, has received nearly unanimous critical raves and has proven to be a box-office favorite, as well, grossing nearly $ 190 million worldwide.


But “Argo” also won the Producers Guild of America Award on Saturday night, which is an excellent Oscar predictor, and it earned best picture and director statues from the Golden Globes two weeks earlier. The Directors Guild of America Awards next Saturday will help crystallize the situation even further.


The one tricky thing at work here: Affleck surprisingly didn’t receive an Academy Award nomination in the director category, which most often goes hand in hand with best picture. (There are nine best-picture nominees but only five slots for directors.) Only once in modern times has a film won best picture without a directing nomination: 1989′s “Driving Miss Daisy.” The other two times came in the show’s early years, at the first Oscars in 1929 with “Wings” and for 1932′s “Grand Hotel.”


Asked backstage at the SAG Awards what might happen when the Oscar winners are announced Feb. 24, Affleck said: “I don’t do handicapping or try to divine what’s going to happen down the road with movies.


“I didn’t get nominated as a director and I thought, ‘OK, that’s that.’ Then I remembered that I was nominated as a producer,” said Affleck, who already has an original screenplay Oscar for writing 1997′s “Good Will Hunting” with longtime friend Matt Damon. “Nothing may happen but it’s a wonderful opportunity to be on the ride and I’m really honored.”


Many of the usual suspects throughout the lengthy awards season heard their names called again Sunday night, including Daniel Day-Lewis as best actor for his intense, deeply immersed portrayal of the 16th U.S. president in “Lincoln.” Accepting the prize on stage, he gave thanks to several of his colleagues including “The Master” star Joaquin Phoenix (who did not receive a SAG nomination), Leonardo DiCaprio and Liam Neeson.


Backstage, Day-Lewis elaborated for reporters that DiCaprio urged him to stick with Steven Spielberg‘s project, which was in the works for many years.


“He said, ‘Don’t give up, he’s the greatest man of the 19th century,’” Day-Lewis said. “So this is all Leo’s fault.”


His co-star, Tommy Lee Jones, also won again in the supporting-actor category for his lacerating portrayal of abolitionist Thaddeus Stevens in Spielberg’s Civil War epic.


Anne Hathaway, the front-runner for best supporting actress at the Oscars and a winner already at the Golden Globes, won at the SAGs for her performance as the doomed prostitute Fantine in the gritty musical “Les Miserables.”


“I’m just thrilled I have dental,” Hathaway joked on stage.


But in the already-tight best actress race, Jennifer Lawrence made things a little more interesting in winning for the drama “Silver Linings Playbook.” The 22-year-old plays a damaged young widow opposite Bradley Cooper, whose character is fresh out of a mental institution. Jessica Chastain, the winner at the Golden Globes, has been her main competition as a driven CIA operative searching for Osama bin Laden in “Zero Dark Thirty.”


Lawrence said on stage that she got her SAG card at 14 — which was only eight short years ago — for a promo for the MTV reality series “My Super Sweet 16,” which she said felt like the best day of her life.


“And now I have this naked statue which means that some of you even voted for me, and that is an indescribable feeling,” she said.


On the television side, the popular PBS series “Downton Abbey” bested more established shows like “Mad Men” to win the TV drama cast award in just its first nomination. “Modern Family won the comedy cast prize for the third straight year.


And Dick Van Dyke received the guild’s life-achievement award, an honor he presented last year to his “The Dick Van Dyke Show” co-star, Mary Tyler Moore.


After receiving a lengthy standing ovation from the audience, he asked his fellow actors, “Aren’t we lucky that we found a line of work that doesn’t require growing up?”


____


Contact AP Movie Writer Christy Lemire through Twitter: http://twitter.com/christylemire


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Well: Keeping Blood Pressure in Check

Since the start of the 21st century, Americans have made great progress in controlling high blood pressure, though it remains a leading cause of heart attacks, strokes, congestive heart failure and kidney disease.

Now 48 percent of the more than 76 million adults with hypertension have it under control, up from 29 percent in 2000.

But that means more than half, including many receiving treatment, have blood pressure that remains too high to be healthy. (A normal blood pressure is lower than 120 over 80.) With a plethora of drugs available to normalize blood pressure, why are so many people still at increased risk of disease, disability and premature death? Hypertension experts offer a few common, and correctable, reasons:

¶ About 20 percent of affected adults don’t know they have high blood pressure, perhaps because they never or rarely see a doctor who checks their pressure.

¶ Of the 80 percent who are aware of their condition, some don’t appreciate how serious it can be and fail to get treated, even when their doctors say they should.

¶ Some who have been treated develop bothersome side effects, causing them to abandon therapy or to use it haphazardly.

¶ Many others do little to change lifestyle factors, like obesity, lack of exercise and a high-salt diet, that can make hypertension harder to control.

Dr. Samuel J. Mann, a hypertension specialist and professor of clinical medicine at Weill-Cornell Medical College, adds another factor that may be the most important. Of the 71 percent of people with hypertension who are currently being treated, too many are taking the wrong drugs or the wrong dosages of the right ones.

Dr. Mann, author of “Hypertension and You: Old Drugs, New Drugs, and the Right Drugs for Your High Blood Pressure,” says that doctors should take into account the underlying causes of each patient’s blood pressure problem and the side effects that may prompt patients to abandon therapy. He has found that when treatment is tailored to the individual, nearly all cases of high blood pressure can be brought and kept under control with available drugs.

Plus, he said in an interview, it can be done with minimal, if any, side effects and at a reasonable cost.

“For most people, no new drugs need to be developed,” Dr. Mann said. “What we need, in terms of medication, is already out there. We just need to use it better.”

But many doctors who are generalists do not understand the “intricacies and nuances” of the dozens of available medications to determine which is appropriate to a certain patient.

“Prescribing the same medication to patient after patient just does not cut it,” Dr. Mann wrote in his book.

The trick to prescribing the best treatment for each patient is to first determine which of three mechanisms, or combination of mechanisms, is responsible for a patient’s hypertension, he said.

¶ Salt-sensitive hypertension, more common in older people and African-Americans, responds well to diuretics and calcium channel blockers.

¶ Hypertension driven by the kidney hormone renin responds best to ACE inhibitors and angiotensin receptor blockers, as well as direct renin inhibitors and beta-blockers.

¶ Neurogenic hypertension is a product of the sympathetic nervous system and is best treated with beta-blockers, alpha-blockers and drugs like clonidine.

According to Dr. Mann, neurogenic hypertension results from repressed emotions. He has found that many patients with it suffered trauma early in life or abuse. They seem calm and content on the surface but continually suppress their distress, he said.

One of Dr. Mann’s patients had had high blood pressure since her late 20s that remained well-controlled by the three drugs her family doctor prescribed. Then in her 40s, periodic checks showed it was often too high. When taking more of the prescribed medication did not result in lasting control, she sought Dr. Mann’s help.

After a thorough work-up, he said she had a textbook case of neurogenic hypertension, was taking too much medication and needed different drugs. Her condition soon became far better managed, with side effects she could easily tolerate, and she no longer feared she would die young of a heart attack or stroke.

But most patients should not have to consult a specialist. They can be well-treated by an internist or family physician who approaches the condition systematically, Dr. Mann said. Patients should be started on low doses of one or more drugs, including a diuretic; the dosage or number of drugs can be slowly increased as needed to achieve a normal pressure.

Specialists, he said, are most useful for treating the 10 percent to 15 percent of patients with so-called resistant hypertension that remains uncontrolled despite treatment with three drugs, including a diuretic, and for those whose treatment is effective but causing distressing side effects.

Hypertension sometimes fails to respond to routine care, he noted, because it results from an underlying medical problem that needs to be addressed.

“Some patients are on a lot of blood pressure drugs — four or five — who probably don’t need so many, and if they do, the question is why,” Dr. Mann said.

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