Military Analysis: Battle for Aleppo Shows Weaknesses of Both Sides


Tyler Hicks/The New York Times


A rebel in Aleppo, which has highlighted the rebels’ inability to organize a coherent campaign and the government’s missteps. More Photos »







ALEPPO, Syria — The sniper walked through the rubble near this city’s front lines. He was searching for another spot from where he might catch a Syrian soldier in his rifle scope’s cross hairs.




Speaking in French-accented English, he said he was not Syrian, but a roaming jihadist who had journeyed here to help the Sunni uprising against President Bashar al-Assad’s secular, Alawite rule.


“I am a Muslim,” he said. “When you see on TV many of your brothers and sisters being killed you have to go help them. This is an obligation in Islam.”


The presence of this foreign antigovernment fighter, who claimed to be from Paris and gave his name as Abu Abdullah, pointed to recurring questions of the battle for Syria’s largest city: How much longer will the fighting last, and what will its effects be?


Now in its sixth month, the battle for Aleppo has become the contest for Syria in a microcosm, exposing the weakness of both sides, while highlighting anew the perils and costs of the country’s bitter civil war.


It has underlined the rebels’ difficulties in organizing a coherent campaign; their paucity of infantry weapons heavier than machine guns; and some of their fighters’ participation in the same human rights abuses for which they condemn the government, including the summary killing of prisoners.


It has also left rebels vulnerable to allegations of corruption, including the theft of much needed food and other aid.


Simultaneously, the fighting has exposed the government’s seemingly fatal miscalculations. For all of its statements to the contrary, and no matter its effort to mass soldiers and firepower here, Mr. Assad’s government has mustered neither the popular support nor the military might to stop the rebels’ slow momentum, much less to defeat them.


These days rumors circulate of Mr. Assad’s dilemma — will he flee Damascus, Syria’s capital, or die behind the palace gate? — while it is rebels who speak with confidence.


“Now we are making very good progress,” said Col. Abdul Jabbar al-Okaidi, a former Syrian military officer who is now one of the senior rebel commanders in the Aleppo region. “Almost all of the military bases and regime forces in Aleppo have been surrounded.”


As winter descends, intensifying the humanitarian crisis for Aleppo’s civilians, the battle’s direction has decisively shifted.


The Syrian Army units here have been largely cut off from the capital. For weeks they have been yielding ground, contracting under the pressures of persistent rebel attacks from almost every direction and the related difficulties of resupply.


The military’s tactic of collective punishment — manifested through seemingly indiscriminate airstrikes and artillery barrages on residential neighborhoods — has earned it only anger and disgust.


One opposition activist noted the army’s practice of firing a few artillery rounds into neighborhoods, waiting five or ten minutes for civilians to gather to help the wounded, and then firing again — resembling NATO’s practice of repeat airstrikes in its campaign in 2011 to unseat Col. Muammar el-Qaddafi of Libya. “Sometimes we wait and don’t go out after the first shells, because we know other shells are coming,” said the activist, Mumtaz Mohammad. “There are a lot of victims who were killed because of this policy.”


Once able to roam freely in its armored columns, the army begins the winter confined mostly to the city’s south and west. It also retains tenuous control of the airport in the southeast, although rebels have pushed close to its fences and claim to have positioned many antiaircraft weapons there.


Syrian Air Force support, almost continuous in the city over the summer, has dwindled. The sound of Russian-made helicopters, once constant, is now unusual.


Passing attack jets often dispense bright strings of decoy flares — a sign that pilots fear the rebels’ portable, heat-seeking missiles, used to shoot down at least one aircraft late in the fall.


But these accumulating rebel successes have not come without setbacks, costs and questions about Syria’s future. The army, while weak, is still potent and difficult to dislodge where it has concentrated forces in Aleppo, just as it has done in most of Syria’s cities.


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Analysis: For tech investors, it’s hard to know when to bolt






(Reuters) – When Hewlett-Packard Co agreed to buy British software company Autonomy in August last year for $ 11.1 billion, two well-known investors made diametrically different bets on how the big deal would play out.


To short seller Jim Chanos, who had been raising red flags on Autonomy for years and had started shorting shares of HP in 2011, the deal was another nail in the coffin of the Silicon Valley tech giant, according to a source familiar with his thinking.






But to activist investor Ralph Whitworth, co-founder of Relational Investors LLC, it was time to commit to HP and the turnaround story the company was trying to sell to Wall Street. His fund bought more than 17.5 million HP shares after the deal was announced, and Whitworth received a seat on the company’s board. This year, Relational roughly doubled its stake in HP.


In the wake of HP’s decision to take an $ 8.8 billion write-down on the deal because of alleged accounting irregularities at Autonomy, it appears Chanos – whose call to short Enron before the energy company collapsed in a corporate scandal may be his most famous trade – was more astute.


HP’s shares are down 36 percent since Relational, which declined to comment, built its stake in the third quarter of 2011.


BARRIERS TO ENTRY


Relational’s big move into HP is a reminder that even smart investors can get things wrong in the fast-evolving technology sector, where once hot global names like Research in Motion and Yahoo can quickly become yesterday’s news.


It is a world where a company may effectively erect barriers to entry in a market only to have them torn down by a rival with a new whizz-bang product – just as Apple‘s iPhone broke the dominance that Research in Motion’s BlackBerry had enjoyed.


One warning sign that a tech company may be on the verge of losing its edge is when it makes acquisitions outside of its main area of expertise to move into new product lines. Savvy tech investors also say be wary of companies that experience a succession of management changes, or when a successful core business starts looking tired.


The pace of change in the technology sector is much faster than in other industries, said Kaushik Roy, an analyst at Hercules Technology Growth Capital. “It attracts new talent and capital, many startups are formed, which can be extremely disruptive to incumbents,” Roy said. “In other words, yesterday’s winners can rapidly become today’s losers and vice versa.”


In the case of HP, the company not only has had four CEOs since 1999, it has been striving to find another niche to dominate as demand for one of its core products – computer printers – wanes and as its PC business stumbles.


Or consider online search pioneer Yahoo, which has gone through six chief executives and is struggling to keep pace with Google.


Josh Spencer, a portfolio manager at T. Rowe Price, said frequent turnover in the executive suite at Yahoo was a warning sign to him. Spencer said he does not own Yahoo shares and has not in the recent past.


RED FLAGS


While a company may view an acquisition as a fresh start – that is what HP was trying to say about Autonomy – some investors see it as a warning the core business is struggling.


Spencer noted that the technology industry’s most successful companies – Apple and Samsung – generally have not made acquisitions and instead developed new products internally.


For Margaret Patel, managing director at Wells Capital Management, one of the first red flags she saw at HP was when former CEO Carly Fiorina bought Compaq for roughly $ 25 billion in 2002.


“I felt then that the acquisition was too large and expensive, and personal computers were not their core strength,” said Patel, who has since avoided investing in HP.


Of course, timing can be everything even if an investor is eventually proven right. Patel missed out on a 137 percent gain in HP’s stock price from the time of the Compaq deal up until the end of 2010.


PREMIUM VALUATIONS


A few money managers see a flashing yellow light in the big sell-off of Apple shares in the past few months.


Apple, the most valuable U.S. company, has shed nearly 30 percent of its value in the last three months.


Since the death of co-founder Steve Jobs – the driving force behind Apple’s iPod, iPhone and iPad – DoubleLine co-founder Jeffrey Gundlach has been recommending that investors short the company’s shares because “the product innovator isn’t there anymore.”


Gundlach said he began shorting Apple’s stock at around $ 610 and maintains that it could drop to $ 425. He declined to comment on Tim Cook, who succeeded Jobs over a year ago and is seen by many as less visionary and innovative than Jobs.


Christian Bertelsen, chief investment officer at Global Financial Private Capital, with assets under management of $ 1.7 billion, said his firm began paring back its exposure to Apple this fall because he felt the expectations for the company’s new iPhone5 had gotten overheated.


He said his firm dramatically took down its exposure to Apple shares when the stock hit $ 670 a share. “For us, the light bulb went off this fall,” he said. Mind you, Apple’s shares still remain up about 25 percent for the whole year.


And then there’s Research in Motion. Once a leader in smartphones, it’s now in danger of becoming irrelevant.


“They saw the move towards all touch-screen phones and didn’t move with it,” said Stuart Jeffrey, an analyst at Nomura Securities who noted how the BlackBerry 10 touch-screen phone will debut on January 30, 2013, six years after Apple released its first iPhone in 2007.


Robert Stimpson, a portfolio manager at Oak Associates Funds whose fund does not own any shares of Research in Motion, said the company’s BlackBerry phones are on a downward slope and it will be tough for the company to regain its lost luster.


“The end of the road is a long, lonely journey,” Stimpson said of Research in Motion. “I think they will fight the good fight for many years, probably unsuccessfully.”


(Reporting by Nicola Leske and Sam Forgione in New York; Editing by Paritosh Bansal, Tiffany Wu, Jennifer Ablan and Matthew Goldstein; Editing by Steve Orlofsky)


Tech News Headlines – Yahoo! News





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Channing Tatum Cradles Wife Jenna Dewan-Tatum's Baby Bump















12/26/2012 at 06:40 PM EST



Channing Tatum is already being sweet with his baby.

PEOPLE's Sexiest Man Alive, who announced earlier this month that he and his wife are expecting their first child, posted an adorable picture of himself cradling Jenna Dewan-Tatum's growing baby bump on Christmas Day.

"Merry Christmas," the Magic Mike hunk wrote on his WhoSay page where he shared the photo of the couple, both 32, smiling and dressed in matching baseball caps.

On Christmas Eve, Dewan-Tatum Tweeted a holiday message to her followers, saying, "Merry Christmas and happy holidays to you all!! Hope you are having fun with loved ones! Xox."

Discussing starting a family, "I'm ready; I think she’s ready," Tatum told PEOPLE recently. "The first number that pops into my head is three, but I just want one to be healthy and then we'll see where we go after that."

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Wall Street drops in thin session, led by retailers

NEW YORK (Reuters) - Stocks fell for a third straight day on Wednesday, dragged lower by retail stocks after a report showed consumers spent less in the holiday shopping season than last year.


Trading was light, with volume at a mere 4.01 billion shares traded on the New York Stock Exchange, the Nasdaq and NYSE MKT, well below the daily average so far this year of about 6.48 billion shares. The day's volume was the lightest full day of trading so far in 2012. Many senior traders were still on vacation during this holiday-shortened week and major European markets were closed for the day.


Many investors said concerns about the "fiscal cliff" kept shoppers away from stores, suggesting markets may struggle to gain any ground until that issue is resolved. The CBOE Volatility Index <.vix> or VIX, Wall Street's favorite barometer of investor anxiety, rose 4.46 percent, closing above 19 for the first time since November 7.


A number of 2012's strongest performers advanced, a sign that portfolio managers may be engaging in "window dressing," a practice where market participants buy securities with big gains to improve the appearance of their holdings before presenting the results to clients. Bank of America Corp , which has more than doubled in 2012, added 2.6 percent to $11.54 on Wednesday.


Holiday-related sales rose 0.7 percent from October 28 through December 24, compared with a 2 percent increase last year, according to data from MasterCard Advisors SpendingPulse. The Morgan Stanley retail index <.mvr> skidded 1.8 percent while the SPDR S&P Retail Trust slipped 1.7 percent.


"With the 'fiscal cliff' hanging over our heads, it was hard to convince people to shop, and now it's hard to convince investors that there's any reason to buy going into year-end," said Rick Fier, director of trading at Conifer Securities in New York, which has about $12 billion in assets under administration.


President Barack Obama is due back in Washington early Thursday for a final effort to negotiate a deal with Congress to bridge a series of tax increases and government spending cuts set to begin next week, the so-called "fiscal cliff" many economists worry could push the U.S. economy into recession if it takes effect.


Coach Inc fell 5.9 percent to $54.13 as the S&P 500's biggest decliner, followed by Amazon.com , down 3.9 percent at $248.63, and Abercrombie & Fitch , off 3.5 percent at $45.44. Ralph Lauren Corp , Limited Brands and Gap Inc also ranked among the S&P 500's biggest decliners.


The Dow Jones industrial average <.dji> slipped 24.49 points, or 0.19 percent, to 13,114.59 at the close. The Standard & Poor's 500 Index <.spx> shed 6.83 points, or 0.48 percent, to 1,419.83. The Nasdaq Composite Index <.ixic> dropped 22.44 points, or 0.74 percent, to 2,990.16.


J.C. Penney Co was a notable exception to the weakness in retail stocks, surging 4.4 percent to $20.75 as the S&P 500's biggest gainer. It was followed closely by Bank of America and Genworth Financial , which each gained nearly 3 percent for the day.


"People want to show they own names like these, making them prime 'window dressing' candidates," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.


"Bank of America keeps going up even though it's overbought and you'd expect a pullback at these levels. No one wanted it when it was under $10 a share, but they want it now."


The S&P 500 has fallen 1.5 percent over the past three sessions, the worst three-day decline since mid-November. The Dow Jones Transportation Average <.djt>, viewed as a proxy for business activity, fell 0.6 percent.


A Republican plan that failed to gain traction last week triggered the S&P 500's recent drop, highlighting the market's sensitivity to headlines centered on the budget talks.


During the last five trading days of the year and the first two of next year, it's possible for a "Santa rally" to occur. Since 1928, the S&P 500 has averaged a gain of 1.8 percent during that period and risen 79 percent of the time, according to data from PrinceRidge.


"While it's unlikely there could be a budget deal at any time, no one wants to get in front of that trade," said Conifer's Fier. "Investors can easily make up for any gains when there's more action in 2013."


Data showed U.S. single-family home prices rose in October, reinforcing the view that the domestic real estate market is improving, as the S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.7 percent in October on a seasonally adjusted basis.


Decliners outnumbered advancers on the New York Stock Exchange by a ratio of about 2 to 1, while on the Nasdaq, more than five stocks fell for every three that rose.


(Editing by Jan Paschal)



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Syrian General in Charge of Stopping Defections Becomes a Defector


Aref Heretani/Reuters.


Mannequins were set up to confuse snipers loyal to President Bashar al-Assad in the old city of Aleppo on Sunday.







BEIRUT, Lebanon — Syria’s government suffered an embarrassing new setback as the top general responsible for preventing defections within the military became a defector himself, making what insurgents described on Wednesday as a daring back-roads escape by motorcycle across the border into Turkey.




The defector, Maj. Gen. Abdul Aziz Jassem al-Shallal, the chief of the military police, was one of the highest-ranking military officers to abandon President Bashar al-Assad in the nearly two-year-old uprising against him.


His departure, first reported by Al Arabiya late on Tuesday evening and confirmed by opposition figures on Wednesday, came as a flurry of diplomatic activity suggested the possibility of movement toward a political solution to the Syrian crisis. A deputy Syrian foreign minister flew to Moscow for meetings with Kremlin officials, and the international envoy who met with Mr. Assad in Damascus earlier this week was planning to visit Moscow this weekend. Russia, one of Mr. Assad’s most ardent foreign defenders, has in recent weeks suggested it was open to a negotiated transition that would ease him out of power.


Opposition figures said General Shallal’s defection had taken weeks to prepare and ended with a four-hour sprint by motorcycle to the Turkish border, driving through woods and on muddy roads. In a video broadcast by Al Arabiya, the general said that he had taken the step because the Syrian military had deviated from its mission to protect the country, and had transformed into “a gang for killing and destruction.”


“The regime army has lost control over most of the country,” the general said in an interview on the Saudi-owned channel, which has heavily criticized the Syrian government.


Opposition fighters embraced the defection as more than a symbolic blow to the government because of the general’s primary responsibility as an enforcer of Mr. Assad’s repression of dissent and guarantor of loyalty by the armed forces. As head of the military police, General Shallal was responsible for the department that was supposed to stop defections. He also presided over a force that guarded prisons where civilian dissidents were held.


Maj. Ibrahim Moutawe, who defected from the Syrian Army a year ago, said defection was a “last resort” for high-ranking officials like General Shallal. “They only consider it when fear and danger begin to threaten them directly, and when the regime can no longer protect them,” he said.


General Shallal was not a member of Mr. Assad’s inner circle, and analysts said that the defections of other officials with impressive titles — including the prime minister, a brigadier general and a well-known government spokesman — had done little to shake Mr. Assad’s basic hold on power.


More critically, the opposition has failed to attract either officers or rank-and-file soldiers belonging to Syria’s Alawite minority, the sect that Mr. Assad belongs to, doing little to assuage fears among Alawites that the Sunni-led insurgency threatens their existence, analysts said.


But the departure of a major general who publicly condemned the armed forces seemed likely to undercut Mr. Assad’s attempts to maintain morale.


The negotiations for the general’s defection began weeks ago, after members of his tribe reached out to opposition commanders, according to Louay Mekdad, the political and media coordinator for the Free Syrian Army, an umbrella organization for rebel fighting groups. Mr. Mekdad said that the general had tried to defect several times before, but had been prevented for what he called “technical reasons,” without giving any more detail.


Rebel commanders gave differing accounts of how much power the general had held in Syria. One commander said he had been a member of Mr. Assad’s “crisis team” of top military, security and intelligence officials coordinating the government’s response to the war. Capt. Adnan Dayoub, a rebel commander in Hama, said that General Shallal had been responsible for prisons — “God knows how many,” he said — and was almost certainly guilty of crimes.


“He’s contaminated from top to bottom,” the captain said. “Tomorrow he will be a hero.”


Kareem Fahim reported from Beirut, and Rick Gladstone from New York. Reporting was contributed by Hwaida Saad from Beirut, Ellen Barry from Moscow, Hala Droubi from Dubai, United Arab Emirates, and Eric Schmitt from Washington.



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Nokia Lumia 920′s fascinating Christmas sets stage for battle with BlackBerry 10






The Chinese version of Nokia’s (NOK) new flagship Windows Phone model recently debuted in Shanghai. According to pictures posted to Chinese websites, the Lumia 920T drew a big crowd… and sold out in two hours. So the debate over whether there is wide mass market demand for the model rages on.


[More from BGR: Microsoft Surface trampled at the bottom of the tablet pile this Christmas]






The very limited early supply makes it hard to gauge the demand in China. The Lumia 920 did hit Amazon China’s (AMZN) top-five list a week ago, but sold out quickly and dropped out. There are now rumors about China Mobile planning to further subsidize the Lumia 920T in January, making it effectively free on contract. This would be China Mobile’s revenge on Apple (AAPL) for its refusal to cut a sweetheart deal with the giant carrier and its 700 million subscribers.


[More from BGR: Purported photo of new BlackBerry phone with QWERTY keyboard leaks]


Nokia may thus be close to landing the Chinese version of the role that Motorola played for Verizon (VZ) in 2010. Back then, the U.S. carrier used DROID models to flaunt the fact that it did not really need the iPhone as badly as many assumed.


China Mobile is now planning to show Apple it can turn even Windows Phones into mass-market hits in China with its marketing and subsidy machine. This could be great for Nokia — if Apple isn’t forced into a cutting a quick deal in coming months. The iPhone’s ho-hum market share performance in markets like Latin America and Asia is piling pressure on Apple right about now.


In a fascinating U.S. twist, the Lumia 920 climbed the Amazon charts again over the past week as its supply has improved. The black variant of the Lumia 920 debuted in the top-three in November, dropped out of top-40 after Amazon’s delivery time stretched to two weeks… and has now staged a comeback to No.14. This makes it the second-biggest AT&T (T) phone on Amazon right now, with only the blue version of the Galaxy S III outperforming the 920.


The Lumia 822 is fizzling badly at Verizon, but Nokia just might be gaining a toehold at AT&T even after the pre-Christmas supply drama. It is now clear that the Lumia 920 is beating its biggest Windows rival, the HTC Windows Phone 8X, convincingly at AT&T.


This sets up a very interesting rivalry when AT&T debuts the new generation of BlackBerry 10 models sometime in February or March. The battle for the third mobile ecosystem at AT&T will be effectively waged by Nokia and RIM (RIMM) this spring. The loser may well find out that it does not have strong subsidy or marketing support in 2013.


AT&T has an incentive to build up a third rival for the Apple and Android ecosystems, but it has little reason to support both minor operating systems.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News





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Predicting who's at risk for violence isn't easy


CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.


Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.


But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.


"They're yellow flags. They only become red flags once the blood is spilled," he said.


Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.


Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)


Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.


Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.


"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."


The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."


In a guidelines for families, the academy lists several risk factors for violence, including:


—Previous violent or aggressive behavior


—Being a victim of physical or sexual abuse


—Guns in the home


—Use of drugs or alcohol


—Brain damage from a head injury


Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.


Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.


Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.


According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.


Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.


Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.


And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.


All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.


Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.


Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.


Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.


___


Online:


American Academy of Child & Adolescent Psychiatry: http://www.aacap.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Yen falls as Japan forms new government, supporting Nikkei

TOKYO (Reuters) - Expectations that Japan's incoming prime minister will pursue drastic stimulus policies to drive the country's economy out of deflation helped weaken the yen and underpinned the Nikkei on Wednesday, while Asian shares were capped in thin holiday trade.


Singapore <.ftsti>, Malaysia <.klse>, Indonesia <.jkse>, the Philippines <.psi> and South Korea <.ks11> were closed on Tuesday for the Christmas holiday, reopening on Wednesday.


Hong Kong and Australia remain closed on Wednesday.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> inched up 0.1 percent, after rising 0.3 percent the previous day on the back of a surge in Shanghai shares <.ssec> to five-month highs and a jump in Taiwan shares <.twii>.


Shinzo Abe, who won a landslide victory in an election earlier this month, will be sworn in as premier on Wednesday, when he is also expected to appoint his cabinet. He is prescribing a mix of aggressive monetary policy easing and big fiscal spending to beat deflation and rein in the strong yen.


He has kept up pressure on the Bank of Japan to deliver much stronger monetary easing policies and called for a 2 percent inflation target to beat deep-rooted deflation, pushing the yen to a 20-month low of 85.08 yen on trading platform EBS early on Wednesday.


Minutes of the BOJ's policy-setting meeting in November showed on Wednesday that some board members said the central bank must act decisively, without ruling out any policy options, if the outlook for the economy and prices worsens further.


Japan's Nikkei stock average <.n225> opened up 0.5 percent, after recapturing the key 10,000 mark it ceded on Friday and ending up 1.4 percent. <.t/>


"The market is overbought, so the Nikkei may not rise sharply, but 'Abe trades' may invite some buying," said Hiroichi Nishi, general manager at SMBC Nikko Securities, adding that if the dollar trades above 85 yen, investors are likely to chase the Nikkei higher to near 10,200.


Aside from the Japanese factor, the dollar was also expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.


U.S. lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week.


House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.


"With the exception of the U.S. fiscal talks, there is no particular issue that could dampen investor appetite to any great degree," said Lee Kyung-min, an analyst at Woori Investment & Securities.


Activity is likely to remain subdued, with volume low and without major economic news.


Later in the session, Thailand will release trade data, which is expected to show exports in November posting very high annual growth as a result of low levels last year reflecting the damage from the flooding.


South Korea's key consumer sentiment index held steady in December from November and stood below the neutral point for a fifth consecutive month, the central bank said on Wednesday, diminishing hopes of a quick economic rebound.


(Additional reporting by Ayai Tomisawa in Tokyo and Joyce Lee in Seoul; Editing by Daniel Magnowski)



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South Korea Seeks to Buy Spy Drones





WASHINGTON (Reuters) — The Obama administration formally proposed a sale of advanced spy drones to help South Korea take a more active role in its own defense from any attack by the heavily armed North.




Seoul has requested a possible $1.2 billion sale of four Northrop Grumman Global Hawks, remotely piloted aircraft with enhanced surveillance capabilities, according to a statement by the Pentagon’s Defense Security Cooperation Agency dated Monday and distributed Tuesday.


South Korea needs such systems to assume top responsibility for intelligence-gathering from the United States-led Combined Forces Command as scheduled in 2015, the security agency said in releasing a notice to American lawmakers. The aircraft “will maintain adequate intelligence, surveillance, and reconnaissance capabilities and will ensure the alliance is able to monitor and deter regional threats in 2015 and beyond,” the notice said.


The military partnership grew from the American role in the 1950-53 Korean War, and is being phased out. Seoul has shown interest in the high-altitude, long-endurance Global Hawk platform for at least four years.


The possible sale has been held up by discussions involving price, aircraft configuration and a deliberately slow pace in releasing of such technology, which is subject to a voluntary 34-nation arms control pact.


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Boston Cop Rescues Drowning Woman






A Boston police officer is being hailed a hero after he jumped into the frigid cold water to rescue a drowning woman.


Cell phone video showed police officer Edward Norton plunging into Fort Point channel Friday afternoon during a torrential downpour to rescue the unidentified woman who’d reportedly fallen in by accident.






Norton, who just happened to be in the right place at the right time, says he didn’t think twice about jumping in.


“It just kind of happened. I saw here there. Someone had to do it,” Norton told ABC News. “As I was in the air, I was thinking I don’t know what’s under the water.”


Once in the water, Norton’s bullet-proof vest weighed him down, making the rescue more complicated than he anticipated. Onlookers did their part by tossing in a life preserver, which helped keep the frantic woman afloat.


“She kept saying stuff like, ‘I can’t hold on.’ So, I told her, ‘Hold on. Help is coming,’” Norton said. The officer remained with the woman in the water until firefighters arrived on the scene and pulled them both out of the water to safety.


Both were taken to local hospitals and checked for hypothermia, but were released with a clean bill of health.


As for the people calling Norton a hero, he says, not really because it’s all in a day’s work.


“I feel like I did what I would expect to do for one of my loved ones. My wife, my daughter, anyone,” Norton said.


While everyone made it out of the water safely with no injuries, there was one casualty so to speak. Norton says his wedding band slipped off when he hit the water and hero or not, his wife is none too pleased.


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