UK warned on debt ‘credibility’













The UK’s failure to meet a key public debt target “weakens the credibility” of its top AAA credit rating, the Fitch ratings agency has said.












Debt will now not fall as a proportion of the country’s output until 2016-17, a year later than Chancellor George Osborne had targeted.


Fitch said that the Autumn Statement confirmed the scale of the challenge facing the UK.


In March, it said the UK’s AAA rating was under threat.


A cut to the credit rating would mean that the country is perceived as more risky to lend to, thereby raising the cost of borrowing from international investors.


The Office for Budget Responsibility, the independent body that makes economic forecasts for the government, announced that the UK will miss its debt target and the economy will contract by 0.1% this year – a big revision from the time of the Budget in March, when it said that the economy would grow 0.8% this year.


Growth forecasts for the next five years were also cut.


“We forecast gross general government debt to peak at 97% in 2015-16, approaching the upper limit of the level consistent with the UK retaining its AAA status,” Fitch said.


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“The government has chosen not to chase the supplementary target by deploying additional consolidation measures over the next two years. In our view, missing the target weakens the credibility of the UK’s fiscal framework, which is one of the factors supporting the [AAA] rating.”


It warned in March that it could downgrade the UK in the next few years if the government does not contain the level of public debt.


Fitch said it would formally review the UK’s rating after the next Budget in March 2013.


In February, rival agency Moody’s also warned that the UK’s credit rating may be cut in future, potentially increasing borrowing costs.


Confusion on borrowing


On borrowing figures, the chancellor said that debt would not begin to fall as a proportion of the country’s output until 2016-17, which is a year later than the government’s target.


Before the statement, many analysts had predicted that the budget deficit, which is the amount the government is having to borrow in the current year, would be higher than it was last year.


However, it is now forecast to fall from £121bn in 2011-12 to £108bn in 2012-13.


But there was some confusion about how that had been achieved, with shadow chancellor Ed Balls complaining about the full figures not being in the Mr Osborne’s statement.


BBC economics editor Stephanie Flanders said that the deficit figure had fallen because the government had decided to use the proceeds from the sale of licences to run 4G mobile phone services to reduce this year’s borrowing.


Without that, she said, the deficit would have risen “maybe by a couple of billion pounds”.


There was also a reduction in the deficit of £11.5bn in the current year as a result of the Asset Purchase Facility.


As a result of the Bank of England’s quantitative easing programme, the central bank currently owns a lot of the government’s debt.


If anybody else had lent money to the government it would have had to pay interest on those loans.


The government has now decided it should not be paying interest to the Bank of England, and the benefit of that has reduced the deficit and will continue to do so for the next four years.


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Death toll from Philippine typhoon nears 300












NEW BATAAN, Philippines (AP) — Stunned parents searching for missing children examined a row of mud-stained bodies covered with banana leaves while survivors dried their soaked belongings on roadsides Wednesday, a day after a powerful typhoon killed nearly 300 people in the southern Philippines.


Officials fear more bodies may be found as rescuers reach hard-hit areas that were isolated by landslides, floods and downed communications.












At least 151 people died in the worst-hit province of Compostela Valley when Typhoon Bopha lashed the region Tuesday, including 78 villagers and soldiers who perished in a flash flood that swamped two emergency shelters and a military camp, provincial spokeswoman Fe Maestre said.


Disaster-response agencies reported 284 dead in the region and 14 fatalities elsewhere from the typhoon, one of the strongest to hit the country this year.


About 80 people survived the deluge in New Bataan with injuries, and Interior Secretary Mar Roxas, who visited the town, said 319 others remained missing.


“These were whole families among the registered missing,” Roxas told the ABS-CBN TV network. “Entire families may have been washed away.”


The farming town of 45,000 people was a muddy wasteland of collapsed houses and coconut and banana trees felled by Bopha’s ferocious winds.


Bodies of victims were laid on the ground for viewing by people searching for missing relatives. Some were badly mangled after being dragged by raging flood waters over rocks and other debris. A man sprayed insecticide on the remains to keep away swarms of flies.


A father wept when he found the body of his child after lifting a plastic cover. A mother, meanwhile, went away in tears, unable to find her missing children. “I have three children,” she said repeatedly, flashing three fingers before a TV cameraman.


Two men carried the mud-caked body of an unidentified girl that was covered with coconut leaves on a makeshift stretcher made from a blanket and wooden poles.


Dionisia Requinto, 43, felt lucky to have survived with her husband and their eight children after swirling flood waters surrounded their home. She said they escaped and made their way up a hill to safety, bracing themselves against boulders and fallen trees as they climbed.


“The water rose so fast,” she told AP. “It was horrible. I thought it was going to be our end.”


In nearby Davao Oriental, the coastal province first struck by the typhoon as it blew from the Pacific Ocean, at least 115 people perished, mostly in three towns that were so battered that it was hard to find any buildings with roofs remaining, provincial officer Freddie Bendulo and other officials said.


“We had a problem where to take the evacuees. All the evacuation centers have lost their roofs,” Davao Oriental Gov. Corazon Malanyaon said.


The International Federation of Red Cross and Red Crescent Societies issued an urgent appeal for $ 4.8 million to help people directly affected by the typhoon.


The sun was shining brightly for most of the day Wednesday, prompting residents to lay their soaked clothes, books and other belongings out on roadsides to dry and revealing the extent of the damage to farmland. Thousands of banana trees in one Compostela Valley plantation were toppled by the wind, the young bananas still wrapped in blue plastic covers.


But as night fell, however, rain started pouring again over New Bataan, triggering panic among some residents who feared a repeat of the previous day’s flash floods. Some carried whatever belongings they could as they hurried to nearby towns or higher ground.


After slamming into Davao Oriental and Compostela Valley, Bopha roared quickly across the southern Mindanao and central regions, knocking out power in two entire provinces, triggering landslides and leaving houses and plantations damaged. More than 170,000 fled to evacuation centers.


As of Wednesday evening, the typhoon was over the South China Sea west of Palawan province. It was blowing northwestward and could be headed to Vietnam or southern China, according to government forecasters.


The deaths came despite efforts by President Benigno Aquino III’s government to force residents out of high-risk communities as the typhoon approached.


Some 20 typhoons and storms lash the northern and central Philippines each year, but they rarely hit the vast southern Mindanao region where sprawling export banana plantations have been planted over the decades because it seldom experiences strong winds that could blow down the trees.


A rare storm in the south last December killed more than 1,200 people and left many more homeless.


The United States extended its condolences and offered to help its Asian ally deal with the typhoon’s devastation. It praised government efforts to minimize the deaths and damage.


___


Associated Press writers Jim Gomez, Teresa Cerojano and Oliver Teves in Manila contributed to this report.


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iOS users generate double the Web traffic of Android users












According to the latest numbers from Chitika Insights, iOS users generate more than twice the amount of Web traffic as Android users. The six-month study found that while the two operating systems were nearly tied when it came to smartphone Web traffic, Apple (AAPL) has a substantial lead with its iPad tablet. Despite Android’s commanding share of the overall mobile market, the Cupertino-based company’s platform totaled 67% of Web traffic measured in the past six months, compared to Android’s 35% share.


“Despite all the new Android and Apple devices that have been released over the past six months, little has changed in the overall Web traffic distribution between iOS and Android,” the research firm wrote. “iOS’s share has hovered around 65%, while Android largely has stayed around 35%, the OS hit a peak of 40% in late August thanks partially to strong Samsung Galaxy S III sales. Apple then regained some share with the release of the iPhone 5 in the September timeframe.”












To qualify for the study Chitika Insights analysed billions of ad impressions coming from iOS or Android devices from May 27th to November 27th.


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HIV Epidemic in Latin America, Caribbean: Making Progress












Right before World AIDS Day 2012, a colorful exhibit was launched at the Pan American Health Organization‘s headquarters in Washington, D.C.


Argentine artist Fabian Rios Rubino‘s United Colors of HIV, previously on display at the Embassy of Argentina, is a colorful acrylic mix, a veritable rainbow.












It was inspired by a controversial 1991 United Colors of Benetton ad campaign showing AIDS activist David Kirby on his deathbed, surrounded by family.


RELATED: HIV Vaccine Under Study May Last A Lifetime


The bright colors of Rubino’s work are meant to point out a new day, a new view and continued progress against HIV and AIDS—and how far some parts of the world have come since 1991.


It was the perfect backdrop for the PAHO statistical update on HIV and AIDS in Latin America and the Caribbean, released to coincide with World AIDS Day.


The face of HIV/AIDS in Latin America and the Caribbean is changing, thanks to widespread access to anti-retroviral drugs as well as prevention education, according to PAHO.


Between 2005 and 2011, the number of AIDS deaths dropped by 20 percent in Latin America and the Caribbean.


In some countries, the decline is even higher, according to the UNAIDS World AIDS Day Report. For instance, deaths in the Dominican Republican dropped 61 percent from 2005 to 2011.


There’s more good news: Both Latin America and the Caribbean now have the highest level of anti-retroviral treatment coverage of any mid- to low-income region in the world, PAHO officials say.


In Latin America, about 68 percent of people who need treatment now get it.


In the Caribbean, it’s 67 percent.


Globally, 8 million of the 14.8 million people eligible for HIV treatment are on it, according to the UNAIDS World AIDS Day Report 2012.


Mother-to-infant transmission of HIV is down, too, by 32 percent in the Caribbean since 2001 and by 24 percent in Latin America.


REALTED: Awareness of HIV Risk Has Dropped Among Gay Men Even As Infection Rates Rise


The advances are due to an all-encompassing approach, according to Dr. Gina Tambini, PAHO area manager for family and community health.


“These new developments reinforce the importance of an integrated approach toward HIV prevention, treatment and care, and alignment with programs and services for maternal and child health, sexual and reproductive health, adolescent health, and others,” she says in a statement.


Within the Americas epidemic, each country faces a unique situation, according to an overview of HIV and AIDS in Latin America produced by Avert, a U.K.-based AIDS and HIV charity.


For instance, the  ”machismo” culture can make some Latin America countries downplay the extent of their HIV infections among men having sex with men, sometimes not targeting them in prevention efforts.


Yet, in other countries—Mexico and Peru are given as examples—high-profile residents have acknowledged their orientation and that the epidemic there is driven at least partially by men having sex with men.


Poverty, a shortage of resources, and dependence on non-governmental funding to stop and prevent HIV/AIDS have slowed progress, Avert says.


In 2011, according to the UNAIDS 2012 Global Report, 1.7 million died of AIDS-related causes globally. Another 2.5 million became newly infected. In all, 34 million are infected, but half do not know their status.


Despite those challenges, PAHO officials contend that progress will continue. The name of the World AIDS Day 2012 theme—Getting to Zero—says it all.


That goal includes no new infections, no deaths and no discrimination.



Kathleen Doheny is a Los Angeles journalist who writes about health. She doesn’t believe in miracle cures, but continues to hope someone will discover a way for joggers to maintain their pace.


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EU fails to agree bank supervisor













EU finance ministers have failed to reach agreement on setting up a single supervisor for eurozone banks after a meeting in Brussels.












Establishing a single supervisor under the European Central Bank (ECB) is seen as the first step in setting up a Europe-wide banking union.


But German and French ministers in particular clashed over the plans.


German Finance Minister Wolfgang Schauble raised concerns about the scope of ECB powers.


He warned that giving the ECB final say on the supervision of eurozone banks could compromise its independence.


Mr Schauble also reiterated his view that it was not reasonable to expect one institution to supervise all 6,000 European banks.


“It would be very difficult to get an approval from German parliament if [the deal] would leave the supervision for all the German banks to European banking supervision,” Mr Schauble said.


“Nobody believes that any European institution would be capable of supervising 6,000 banks in Europe.”


He also said there had to be a “Chinese wall” between supervision and monetary policy at the ECB.


His French counterpart Pierre Moscovici said the position of France was “steadfast” in support of the proposals.


Cypriot finance minister Vassos Shiarly, who chaired the meeting, called for another gathering to be held on December 12 in the hope of striking a deal.


EU officials are anxious that an agreement is reached before the end of the year.


The plans are seen as central to Europe’s response to the eurozone debt crisis and global financial crisis.


“It is of primordial importance that an agreement be reached by the end of the year,” said EU economic affairs commissioner Olli Rehn. “It is a test that Europe cannot afford to fail.”


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WestJet embraces tech to woo business travelers












TORONTO (Reuters) – WestJet Airlines Ltd will use technological innovation, including a new Internet ticket booking system, to help it transform from a no-frills carrier to a lower-cost full-service airline courting lucrative corporate travelers, its chief executive said on Monday.


Canada’s second-biggest airline plans to launch a series of technology systems, most notably the new online booking engine, which will sell three tiers of tickets, in the next two months.












“Companies evolve or they die,” Chief Executive Gregg Saretsky told Reuters in a phone interview from the company’s Calgary head office.


“We’re 16 and going on 17 years old and we can’t stay just as we were 17 years ago. The world has changed. And we are changing to be more relevant for a broader segment of guests.”


The new Internet booking system, which WestJet hopes to launch in late January, will sell economy, mid-tier and premium tickets. That is a major shift from its current system, which sells only the lowest-priced ticket available.


Economy tickets under the new system will continue to sell the lowest available fare, but the cancellation fee for them will jump to C$ 75 ($ 75.48) from C$ 50. Mid-tier tickets will have a C$ 50 cancellation fee.


Premium tickets, unavailable until late March when WestJet finishes reconfiguring its 100 Boeing 737 planes to allow more leg room, will include priority screening and boarding, free cancellations and flexibility on ticket changes.


Pricing for those tickets, which may include free meals and drinks and an extra baggage allowance, has not yet been determined. Fares will be well below half the price for business class at WestJet’s bigger competitor, Air Canada, Saretsky said.


“It’s time for us to be more serious with respect to going after business travelers because frankly, they’re the ones who are booking last-minute and are happy to pay for the conveniences,” Saretsky said.


WestJet will launch its premium economy service with 24 seats per plane, but will consider expansion if it proves “wildly successful,” he added.


POISED FOR CHANGE


WestJet, which has spent about C$ 40 million over the past two years on technology projects, is poised for major changes in 2013 as it readies to launch a new regional airline, Encore.


Saretsky hopes that WestJet’s switch in coming weeks to a new Internet phone system will allow ticket reservation agents to work from home and help make room for Encore staff.


Some 750 reservation agents work at WestJet’s Calgary offices, which house about 2,400 staff. Space will be needed for Encore employees over the next 18 months while their office, hangars and maintenance stores are constructed at the WestJet campus.


Encore will be launch in the second half of 2013, “probably closer to July than December,” Saretsky said, with seven Bombardier Q400 planes.


While WestJet won’t announce Encore’s schedule until Jan 21, the carrier will initially serve only “a handful” of new cities, with ticket prices up to 50 percent below Air Canada’s, he added.


Over the next two months, WestJet will also roll out a guest notification system that alerts travelers via email about their flights, allowing them to check in remotely.


Such self-service technology will be critical as WestJet faces increasing labor costs, Saretsky said.


Wage and benefit costs, which represent about a third of operating costs, have climbed 50 percent since WestJet was founded in 1996.


“You can see that creates a little bit of drag on earnings,” Saretsky said. “We’ve got to find ways of reducing our component costs.”


If WestJet can increase self service options for travelers, that could limit the need for new employees, Saretsky said. Management also wants to improve attendance management, so that fewer employees book off sick around long weekends, and more quickly clean and process planes between flights, he said.


(Reporting By Susan Taylor; Editing by Peter Galloway)


(This story was corrected to show that WestJet is replacing its Internet booking engine, not entire reservation system, in the first and second paragraphs)


Canada News Headlines – Yahoo! News


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News Corp shutting down iPad newspaper ‘The Daily’ on December 15th












News Corp’s iPad newspaper “The Daily” is officially dead. Launched in February 2011, The Daily was a “ bold experiment in digital publishing and an amazing vehicle for innovation,” but like so many pioneering ideas, it “could not find a large enough audience quickly enough” to keep the publication going, according to Rupert Murdoch, the Chairman of News Corporation and Chairman and CEO of Fox Group. The Daily will officially cease publishing on December 15th and will see Jesse Angelo, its Editor-in-Chief and Executive Editor of The New York Post move into the role of Publisher for the latter. The Daily was supposed to signal a new era of app-based interactive newspapers, but alas, in a world of Flipboard, Instapaper and social media, finding a new channel to distribute and aggregate news has proven to be challenging, even for corporations with plenty of resources.


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Geron drops brain cancer drug, to cut jobs












(Reuters) – Geron Corp confirmed it will discontinue development of an experimental drug to treat cancer that has spread to the brain from elsewhere in the body and also cut about 40 percent of its workforce, after patients failed to respond to the drug in a mid-stage study.


The company said it will now focus on the development of another drug candidate, imetelstat, as a treatment for blood cancers and some types of solid tumors.












The brain cancer drug, GRN1005 and imetelstat’s development in blood cancers were the only hopes that Geron‘s shareholders had after the company warned investors in September that it would stop developing imetelstat as a breast cancer treatment.


Geron now has only imetelstat in its pipeline, after dropping its brain cancer drug and exiting stem-cell research in November 2011.


The company signed a deal last month to sell its stem-cell assets to BioTime Inc.


On Monday, Geron also said Chief Financial Officer Graham Cooper will be leaving to pursue other opportunities. Treasurer and Chief Accounting Officer Olivia Bloom will replace Cooper.


Menlo Park, California-based Geron shares, which had closed at $ 1.48 on Monday on Nasdaq, fell 16 percent to $ 1.24 in extended trading.


(Reporting by Vidya P L Nathan; Editing by Joyjeet Das)


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UK economy ‘not as bad in 2012′













The British Chambers of Commerce (BCC) has increased its forecast for UK growth for 2012, but still expects the economy to shrink.












The UK will shrink by 0.1% this year, less than the 0.4% contraction it had predicted previously, the BCC said.


That is “entirely due to the stronger-than-expected” growth in the last quarter, helped by the Olympic Games.


But it now sees growth of 1% for the whole of 2013, down from the 1.2% it had forecast in September.


“As we wait in anticipation for the chancellor to deliver his Autumn Statement tomorrow, our new forecast highlights the challenges still facing the UK economy over the months and years ahead,” said John Longworth, director-general of the BCC.


“The fact remains that growth is still too weak. Thankfully, we have businesses here in the UK that are ambitious, determined and resilient.”


Chancellor George Osborne gives the Autumn Statement on Wednesday. Over the weekend, he admitted that curbing the UK’s financial deficit was “taking longer” than planned.


The BCC said that public sector borrowing would be £104.1bn for 2012/13 – more than £12bn higher that it had predicted in March.


“Many firms are expanding exports, investing, and creating jobs, but more must be done to support the aspirations of growing companies that will be the wealth creators of tomorrow,” Mr Longworth said.


Last month, it emerged that the UK economy had bounced back from recession in the three months to September.


The economy grew by 1.0%, after contracting for the previous nine months. The UK has still not recovered the levels of output seen before the financial crisis in 2008.


For 2014, the BCC cut the forecast to 1.8%, from 2.2%.


The BCC said that the lower GDP growth forecasts for 2013 and 2014 were due to the fact that the “international environment has worsened, as growth forecasts for world trade, for the eurozone, and for other major economies have been revised down in recent months” and that more spending cuts were likely in the UK.


BBC News – Business


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Official: Syria moving chemical weapons components












WASHINGTON (AP) — U.S. and allied intelligence have detected Syrian movement of chemical weapons components in recent days, a senior U.S. defense official said Monday, as the Obama administration strongly warned the Assad regime against using them.


A senior defense official said intelligence officials have detected activity around more than one of Syria‘s chemical weapons sites in the last week. The defense official spoke on condition of anonymity because he was not authorized to speak publicly about intelligence matters.












Secretary of State Hillary Rodham Clinton, in Prague for meetings with Czech officials, reiterated President Barack Obama‘s declaration that Syrian action on chemical weapons was a “red line” for the United States that would prompt action.


“We have made our views very clear: This is a red line for the United States,” Clinton told reporters. “I’m not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say, we are certainly planning to take action if that eventuality were to occur.”


Syria said Monday it would not use chemical weapons against its own people. The Ministry of Foreign Affairs said Syria “would not use chemical weapons — if there are any — against its own people under any circumstances.”


Syria has been careful never to confirm that it has any chemical weapons.


The use of chemical weapons would be a major escalation in Assad’s crackdown on his foes and would draw international condemnation. In addition to causing mass deaths and horrific injuries to survivors, the regime’s willingness to use them would alarm much of the region, particularly neighboring states, including Israel.


At the White House, press secretary Jay Carney said, “We are concerned that in an increasingly beleaguered regime, having found its escalation of violence through conventional means inadequate, might be considering the use of chemical weapons against the Syrian people. And as the president has said, any use or proliferation of chemical weapons by the Syrian regime would cross a red line for the United States. “


Administration officials would not detail what that response might be.


Although Syria is one of only seven nations that have not signed the Chemical Weapons Treaty, it is a party to the 1925 Geneva Protocol that bans the use of chemical weapons in war. That treaty was signed in the aftermath of World War I, when the effects of the use of mustard gas and other chemical agents outraged much of the world.


Clinton didn’t address the issue of the fresh activity at Syrian chemical weapons depots, but insisted that Washington would address any threat that arises.


An administration official said the trigger for U.S. action of some kind is the use of chemical weapons or movement with the intent to use or provide them to a terrorist group like Hezbollah. The U.S. is trying to determine whether the recent movement detected in Syria falls into any of those categories, the official said. The administration official was speaking on condition of anonymity this person was not authorized to speak publicly about the issue.


The senior defense official said the U.S. does not believe that any Syrian action beyond the movement of components is imminent.


An Israeli official said if there is real movement on chemical weapons, it would require a response. He didn’t say what that might be and spoke on condition of anonymity pending a formal government response to the reports of the latest activities.


Israeli officials have repeatedly expressed concerns that Syrian chemical weapons could slip into the hands of Hezbollah or other anti-Israel groups, or even be fired toward Israel in an act of desperation by Syria.


Syria is believed to have several hundred ballistic surface-to-surface missiles capable of carrying chemical warheads.


Its arsenal is a particular threat to the American allies, Turkey and Israel, and Obama singled out the threat posed by the unconventional weapons earlier this year as a potential cause for deeper U.S. involvement in Syria’s civil war. Up to now, the United States has opposed military intervention or providing arms support to Syria’s rebels for fear of further militarizing a conflict that activists say has killed more than 40,000 people since March 2011.


Clinton said that while the actions of President Bashar Assad‘s government have been deplorable, chemical weapons would bring them to a new level.


“We once again issue a very strong warning to the Assad regime that their behavior is reprehensible, their actions against their own people have been tragic,” she said. “But there is no doubt that there’s a line between even the horrors that they’ve already inflicted on the Syrian people and moving to what would be an internationally condemned step of utilizing their chemical weapons.”


Activity has been detected before at Syrian weapons sites, believed to number several dozen.


Defense Secretary Leon Panetta said in late September the intelligence suggested the Syrian government had moved some of its chemical weapons in order to protect them. He said the U.S. believed that the main sites remained secure.


Asked Monday if they were still considered secure, Pentagon press secretary George Little declined to comment about any intelligence related to the weapons.


Senior lawmakers were notified last week that U.S. intelligence agencies had detected activity related to Syria’s chemical and biological weapons, said a U.S. intelligence official, speaking on condition of anonymity to discuss the closed-door meetings. All congressional committees with an interest in Syria, from the intelligence to the armed services committees, are now being kept informed.


“I can’t comment on these reports but I have been very concerned for some time now about Syria’s stockpiles of chemical weapons and its stocks of advanced conventional weapons like shoulder-launched anti-aircraft missiles,” said House intelligence committee Chairman Mike Rogers, R-Mich. “We are not doing enough to prepare for the collapse of the Assad regime, and the dangerous vacuum it will create. Use of chemical weapons by the Assad regime would be an extremely serious escalation that would demand decisive action from the rest of the world,” he added.


Syria is believed to have one of the world’s largest chemical weapons programs, and the Assad regime has said it might use the weapons against external threats, though not against Syrians. The U.S. and Jordan share the same concern about Syria’s chemical and biological weapons — that they could fall into the wrong hands should the regime in Syria collapse and lose control of them.


___


Klapper reported from Prague. Associated Press writers Josef Federman in Jerusalem, Albert Aji in Damascus and Matthew Lee, Kimberly Dozier, and Julie Pace in Washington contributed to this report.


Europe News Headlines – Yahoo! News


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