Fiscal cliff negotiators are facing high hurdles

WASHINGTON (AP) — It's entirely possible that lawmakers and the White House will reach a deal that staves off an avalanche of tax increases and deep cuts in government programs before a Jan. 1 deadline. To do so, however, they'll have to resolve deep political and fiscal disagreements that have stymied them time after time despite repeated promises to overcome them.

For many economists, corporate leaders and politicians, it's unconscionable to let the government veer over the "fiscal cliff," which could drain $500 billion from the still-struggling economy next year. But even President Barack Obama says it could happen.

"Obviously we can all imagine a scenario where we go off the fiscal cliff," the president said last week. The likeliest cause, he suggested, would be "too much stubbornness in Congress," especially on the issue of taxes.

Many Republicans in Congress counter that it's Obama who is too unyielding.

The knottiest issues facing the White House and congressional negotiators include:

TAX RATES

Obama campaigned on a pledge to end the George W. Bush-era tax cuts for households making more than $250,000 a year. Republican leaders say the lower rates from 2001 and 2003 should remain in place for everyone, including the rich.

Both sides have dug in so deeply that it will be politically painful to back down. Republicans say tax increases on the rich would inhibit job growth. Democrats dispute that, and say it's only fair for the wealthiest to provide more revenue in this era of historically low tax burdens and a growing income disparity between the rich and the poor.

Most Republican lawmakers have signed a pledge not to allow tax rates to rise, even if they are scheduled to do so by law, as are the Bush-era cuts. Some Democrats say it may be necessary to let the Dec. 31 deadline expire and have everyone's tax rates revert to the higher, pre-Bush levels. Then, the argument goes, Republicans could vote to bring the rates back down for most Americans, but not the richest, without breaking their pledge.

The tax rate issue is especially thorny because it doesn't lend itself to Washington's favorite tactics for postponing hard decisions. Lawmakers routinely resort to "continuing resolutions" to end budget impasses by keeping spending levels unchanged for yet another year. Politically, no one wins or loses.

Obama's campaign promise to raise tax rates on the wealthy precludes that. Either rates on the rich will rise and Republicans will absorb defeat on a huge priority, or the rates will remain unchanged, a political defeat for Obama.

LOBBIES AND THE STATUS QUO

Both parties have talked, vaguely, of raising revenues by limiting the itemized tax deductions claimed by about one-third of the nation's taxpayers. Among the most popular deductions are those for charitable donations, health care costs and mortgage interest payments. Each is represented by muscular lobbying groups that will fight to protect the millions or billions of dollars these tax breaks steer their way.

An array of ideas has been floated. They include capping a taxpayer's total deductions at $35,000 or $50,000, and limiting the value of deductions to 28 percent, instead of the current 35 percent for high earners. The coalition of universities and other institutions that rely on tax-exempt donations is so influential that some strategists say charitable gifts should be left untouched. The housing industry says the same about home mortgage interest.

"Once you put something on the table, there is enormous pushback all around," said Rep. Peter Welch, D-Vt. He says going over the fiscal cliff, at least temporarily, may be the only way to force Republicans to accept tax increases and to embolden lawmakers to make painful choices.

50-50 NATION, 90-10 DISTRICTS

The past few presidential elections prove the country is almost evenly split between Democratic and Republican sentiments. But thanks to legislative gerrymandering, Americans' migration patterns and other factors, many House members represent districts that are overwhelmingly conservative or liberal. These lawmakers may recognize that compromise is the only way to get a law enacted in Congress.

But compromise may be a ticket to defeat in their next primary election by an ideological purist from their party's fringe.

This is especially apparent among some House Republicans who say Obama's re-election victory means little to them and their constituents. GOP insiders say House Speaker John Boehner, R-Ohio, expects to lose as many as 70 of his 241 fellow Republicans on a career-defining vote on an eventual compromise package to resolve the fiscal cliff. If Republican defections go much higher, it may be impossible for Boehner to push on without risking his speakership.

Rep. Raul Labrador, R-Idaho, is among the conservatives who seem unlikely to embrace a bipartisan compromise. "We will continue to fight any member of our conference that decides this is a good time to raise taxes," he said last week.

DEMANDING CONSTITUENTS

For years, Americans have enjoyed high levels of government service at low levels of taxation, historically speaking. So the government borrows about one-third of every dollar it spends, piling up debt for future generations. Both parties often talk about cutting spending. But not much happens because constituents demand services they consider important and every government program is important to someone.

Solving the fiscal cliff is daunting, not merely because politicians must make tough decisions to raise taxes and shrink programs; these are the kinds of decisions that can get a candidate defeated. There's also the magnitude of the unpleasantness needed to make a real dent in deficit-spending after so many years of a government free lunch.

Because he has to submit a budget to Congress every year, the president has proposed more specific ideas for raising revenue and reducing spending than have the Republicans. He would raise an assortment of taxes on the wealthy. Obama says he wants $1.6 trillion over 10 years in new revenues. That's double the amount Boehner has suggested. As for spending, Obama would seek cuts in health costs, farm subsidies, rent assistance, airport construction and other programs.

Republicans have offered fewer details for how to bridge the spending gap, saying the president is obligated to lead.

Republicans say lower tax rates would spur economic growth, and thereby increase overall tax revenues. Economists say this "dynamic scoring" concept, related to "supply side economics," has run out of gas at today's low tax levels. As a share of the economy, federal tax receipts over the past three years have hit their lowest levels since 1950.

Sen. Chuck Schumer, D-N.Y., said it's "a myth" that Republicans can find enough revenue from limiting itemized deductions. "Our Republican colleagues cannot play games on revenues," he said.

That kind of tough talk makes life difficult for Boehner, Obama and the handful of other leaders trying to find a way to avoid a New Year's drive over the fiscal cliff.

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Summary: A look at the 4 new Kindle Fire models
















Amazon.com Inc. started shipping a large-screen version of its Kindle Fire tablet computer on Thursday, ahead of schedule. Here is a look at the new Fires announced in September:


— Kindle Fire, with 7-inch screen, 1024 by 600 pixels. $ 159, with 8 gigabytes of storage. Weighs 14.1 ounces. Battery life of 8.5 hours. Started shipping Sept. 14.













Kindle Fire HD, with 7-inch screen, 1280 by 800 pixels. $ 199 with 16 GB of storage or $ 249 with 32 GB of storage. Weighs 13.9 ounces. Battery life of 11 hours. Started shipping Sept. 14.


— Kindle Fire HD 8.9″, with 8.9-inch screen, 1920 by 1200 pixels. $ 299 with 16 GB of storage or $ 369 with 32 GB of storage. Weighs 20 ounces. Battery life of 10 hours. Started shipping Thursday.


— Kindle Fire HD 8.9″ 4G LTE Wireless, with 8.9-inch screen, 1920 by 1200 pixels. $ 499 with 32 GB of storage or $ 599 with 64 GB of storage. Can connect to AT&T Inc.‘s 4G LTE wireless network. Weighs 20 ounces. Battery life of 10 hours. Will start shipping Tuesday.


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Tulsa Town Hall: Nutrition a valuable tool in health care

















Weil spoke as part of the Tulsa Town Hall series of speakers.













The United States has an expensive health-care system that doesn’t produce good results, he said.


“Something is very wrong with this picture,” he said. “We’re spending more and more and we have less and less to show for it.”


Changes in diet can be an effective treatment for many conditions, but American physicians are functionally illiterate in nutrition, he said.


“The whole subject of nutrition is omitted in medical education,” he said.


There are many ways of managing diseases other than drugs, he said. Integrative medicine, which can include dietary supplements and practices like meditation, is the future of health care, he said.


The health system is resistant to change because of entrenched vested interests. That includes pharmaceutical companies that do direct-to-consumer advertising, which should be stopped, he said.


“As dysfunctional as our health-care system is at the moment – and it is very dysfunctional – it is generating rivers of money,” he said. “That money is going into very few pockets.”


Weil has developed an anti-inflammatory diet based on the Mediterranean diet but with Asian influences.


Inflammation is associated with some heart disease, Alzheimer’s disease and some cancers, he said. And as a result, people should be eating real, unprocessed foods and whole grains. They should stay away from sugar-sweetened beverages, including fruit juice, he said.


“The new research that’s being done on sugar is not very comforting,” he said.


The aging process can’t be avoided, but age-related diseases can be avoided by proper care, he said.


“The goal should be to live long and well with a big drop off at the end,” he said.


Weil is the director of the University of Arizona’s Center for Integrative Medicine.


Tickets to the Tulsa Town Hall series are sold as a $ 75 subscription and cover five lectures. Tickets for individual lectures are not available.


To subscribe, visit tulsaworld.com/tulsatownhall, call 918-749-5965 or write to: Tulsa Town Hall, Box 52266, Tulsa, OK 74152.


Future speakers include journalist Ann Compton on Feb. 8; author James B. Stewart on April 5; historian and cinematographer Rex Ziak on May 10.


Original Print Headline: Speaker highlights nutrition



Shannon Muchmore 918-581-8378
shannon.muchmore@tulsaworld.com3ed48  basic Tulsa Town Hall: Nutrition a valuable tool in health care
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“Sister” Director Tackles Taboo of Switzerland’s Class Divide With Her Oscar Contender
















LOS ANGELES (TheWrap.com) – Director Ursula Meier can hardly believe that her film “Sister” – which depicts tenements, poverty and a seemingly rigid class system in lovely Switzerland – has made it over the Alps to Hollywood for Academy consideration.


“It shows a not-very-usual aspect of Switzerland,” Meier told the audience at a showing of “Sister” Thursday night at the Landmark, part of TheWrap’s Academy Screening Series. “We don’t show the beautiful mountains and the green and the lush life … For me it was important to show another point of view on this country to the world. Because usually it’s Montblanc, chocolate, and Swatch.”













Indeed, with her second film, Meier has given international audiences something else to associate with Switzerland: larcenous snow urchins.


“Sister” centers mostly around 12-year-old Simon (Kacey Mottet Klein), who lives in a high-rise tenement in a not-so-snowy valley far below a ski resort and takes gondolas to the top to steal wealthy tourists’ skis right out from under their goggles.


Wily Simon is financing not just his own existence but that of Louise (Lea Seydoux), the title character, who just might be the worst parental figure or caretaker in a cinematic year that did, after all, include “Beasts of the Southern Wild.”


It would involve spoilers to explain why Simon’s older sis is not everything she’s cracked up to be. But there’s nothing misleading about this boy-crazy, substance-abusing twentysomething gal’s unfitness to watch over Simon, the breadwinner of their sad two-person family.


He has to empty out his cash drawer to bribe Louise into snuggling with him, and when he entrusts her with the mere task of waxing skis, she can’t even do that without spilling cigarette ashes on the stolen merchandise.


“It was important for me, when we were at the ski resort, to showing the back door of the restaurant, and the workers inside … And it’s just at the end, when it’s finished, when there is no more snow and the ski resort is closed, for the first time Simon looks at the landscape. And we can see how beautiful this place is, but it’s too late now.”


Meier worked with her young leading man on her first theatrical feature, 2009′s “Home,” where he played Isabella Huppert’s son when he was just 7. She’s emphatic that Klein is not the kind of child actor who has to be tricked into giving a performance.


“During the first casting, I ask him, ‘What do you like to do in your life, Kasey?’ And he told me, ‘Thinking.’ So I said ‘OK, think,’ and I turned on the camera, and he was amazing … He understands that acting is to be, not to look like. So I really wanted to write for him with this film, because it was such an amazing experience on my first film.”


The role of the severely neglectful “sister” was tougher to nail down, both for the director and her leading actress.


“This character was the challenge of the film,” Meier said. “Because Kacey’s character is a child, so for the spectator, of course he’s a victim. But with the character of Louise, for Lea as an actress, at the beginning for her it was very hard to find the fragility of the character. I showed her a lot of films like ‘Vagabond’ … I explained to her, you were 14 when you were pregnant; it was too young for a girl, and you stopped your studies and got bad jobs you cut with your family.”


Sometimes, she said, they’d fight because “she couldn’t find the fragility of the character, and suddenly, months later, wow – it was like we cut something open and all the emotion that came out from her was very deep. I was afraid of the spectators judging the character. It was not easy, in the writing, or in the directing with the actors, because I wanted that they would love these characters, even if they’re sometimes terrible. But I like terrible characters.”


Pond told Meier that when it came to supporting actress Gillian Anderson, of “X-Files” fame, “the first time I watched, I didn’t realize it was her till the end credits” – an experience probably shared by most of those in attendance at the screening.


“I’m very happy that you say that,” said Meier, “because if you recognize the actress, you think about the actress.” But the director did want Armstrong to provoke a where-have-I-seen-you-before vibe.


“I really wanted to be played by a star – not to have a star in my film, but because it was important for Simon to have a kind of phantasma this lady, of what he wants as a mother.


And as a spectator, you can have a phantasma on the star. So I like that she came from another country, and not speak French, because she’s almost an apparition.”


Meier admitted she was frightened before the Swiss premiere – before “Sister” went on to play various fests and win the special Golden Bear award at the Berlin Film Festival.


“When I had the first screening in Switzerland, a lady came back to me and was very moved by the film, because it’s usually a taboo to show poverty in Switzerland. She cried and told me, ‘I grew up in exactly the same place. My father was a worker in the factory we saw in the film, and as a child we never had the money to go up.’ I liked that she just said up.”


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Canadian October home sales dip, latest sign of cooling
















TORONTO (Reuters) – Sales of existing homes in Canada fell in October from September and year-over-year sales were down as well, the Canadian Real Estate Association said on Thursday in the latest signal that the housing market is slowing.


The industry group for Canadian real estate agents said sales were down 0.1 percent in October from September. Actual sales for October, not seasonally adjusted, were down 0.8 percent from a year earlier.













The housing market, which roared higher in 2011 and the first half of 2012, started to slow after the government tightened rules on mortgage lending in July in a bid to cool the market and prevent home buyers from taking on too much debt.


Housing market trends in Canada for 2012 can be characterized as before and after regulatory changes,” TD Economics senior economist Sonya Gulati said in a research note.


“In the first half of the year, sales and price gains were modest, but positive. More stringent mortgage rules and tighter mortgage underwriting rules have ‘purposely’ knocked the wind out of the housing market sails,” she said.


The home sales data showed diverging paths in Canadian housing depending on location. In Toronto and Vancouver, where sales and price gains were red hot in 2011 and early in 2012, the market has been cooling. But markets in the resource-rich western provinces of Saskatchewan and Alberta have been gaining strength.


“Opinions differ about how sharply sales have slowed depending on the local housing market,” Gregory Klump, CREA’s chief economist, said in a statement.


Led by Calgary, sales in October were up from a year earlier in almost two-thirds of local markets. Sales remained blow year-earlier levels in Toronto, Vancouver and Montreal, CREA said.


“These results suggest that the Canadian housing market overall has returned to a more sustainable pace,” Klump said.


CREA’s Home Price Index rose 3.6 percent in October from a year earlier, the sixth consecutive month in which gains in prices slowed, and the slowest rate of increase since May 2011.


While tighter mortgage rules have worked to slow the market, TD’s Gulati said the big question is what will happen when that temporary cooling effect wears off in early 2013.


“What happens thereafter is less certain. The low interest rate environment could pull homeowners back onto the market, causing home prices to once again trek upwards. Alternatively, an absence of pent-up demand may leave the market in a bit of a lull until interest rate hikes resume in late 2013,” she wrote.


“Under either scenario, it is safe to say that there is a low probability of out-sized home price gains over the near-term.”


A total of 402,322 homes traded hands via Canadian MLS systems over the first 10 months of 2012, up 0.8 percent from the same period last year and 0.4 percent below the 10-year average for the period, the data showed.


The number of newly listed homes fell 3.8 percent in October following a jump in September. Monthly declines were reported in almost two-thirds of local markets, with Toronto and Vancouver exerting a large influence on the national trend.


Nationally, there were 6.5 months of inventory at the end of October, little changed from the reading of 6.4 months at the end of September.


(Editing by Peter Galloway)


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Israel hits Hamas government buildings, reservists mobilized

GAZA/JERUSALEM (Reuters) - Israeli aircraft bombed Hamas government buildings in Gaza on Saturday, including the prime minister's office, after Israel's cabinet authorized the mobilization of up to 75,000 reservists in preparation for a possible ground invasion.


Palestinian militants in Gaza kept up cross-border salvoes, firing a rocket at Israel's biggest city Tel Aviv for the third straight day. Police said it was destroyed in mid-air by an Iron Dome anti-missile battery deployed hours earlier, and no one was injured.


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


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


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


Officials in Gaza said 41 Palestinians, nearly half of them civilians including eight children and a pregnant woman, had been killed since Israel began its air strikes. Three Israeli civilians were killed by a rocket on Thursday.


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


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


Israel uncorked its massive air campaign on Wednesday with the declared goal of deterring Hamas from launching rockets that have plagued its southern communities for years. The salvoes recently intensified, and are now displaying greater range.


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


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


"We have not limited ourselves in means or in time," Israeli Foreign Minister Avigdor Lieberman said on Israel's Channel One television. "We hope that it will end as soon as possible, but that will be only after all the objectives have been achieved."


Hamas says it is committed to continued confrontation with Israel and is eager not to seem any less resolute than smaller, more radical groups that have emerged in Gaza in recent years.


The Islamist movement has ruled Gaza since 2007. Israel pulled settlers out of Gaza in 2005 but maintains a blockade of the tiny, densely populated coastal territory.


RESERVE TROOP QUOTA DOUBLED


At a late night session on Friday, Israel's cabinet decided to more than double the current reserve troop quota set for the Gaza offensive to 75,000, political sources said.


The move did not necessarily mean all would be called up or that an invasion would follow. Tanks and self-propelled guns were seen near the sandy border zone on Saturday, and around 16,000 reservists have already been summoned to active duty.


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


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


Hamas's armed wing claimed responsibility for Saturday's rocket attack on Tel Aviv, saying it had fired a longer-range, Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of the Gaza Strip.


After air raid sirens sounded, witnesses saw two white plumes rise into the sky over the southern outskirts of Tel Aviv and heard an explosion when the incoming rocket was hit.


The anti-missile battery had been due to take delivery of its fifth Iron Dome battery early next year but it was rushed into service near Tel Aviv after rockets were launched toward the city on Thursday and Friday. Those attacks caused no damage or casualties.


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


In Gaza, some families abandoned their homes - some of them damaged and others situated near potential Israeli targets - and packed into the houses of friends and relatives.


ISRAEL'S GAZA TARGETS


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


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


A three-storey house belonging to Hamas official Abu Hassan Salah was also hit and totally destroyed early on Saturday. Rescuers said at least 30 people were pulled from the rubble.


In Washington, U.S. President Barack Obama commended Egypt's efforts to help defuse the Gaza violence in a call to Mursi on Friday, the White House said in a statement, and underscored his hope of restoring stability there.


On Friday, Egyptian Prime Minister Hisham Kandil paid a high-profile visit to Gaza, denouncing what he called Israeli aggression and saying Cairo was prepared to mediate a truce.


Egypt's Islamist government, freely elected after U.S.-backed autocrat Hosni Mubarak fell to a popular uprising last year, is allied with Hamas but Cairo is also party to a 1979 peace treaty with Israel.


In a call to Netanyahu, Obama discussed options for "de-escalating" the situation, the White House said, adding that the president "reiterated U.S. support for Israel's right to defend itself, and expressed regret over the loss of Israeli and Palestinian civilian lives".


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


But few believe Israeli military action can snuff out militant rocket fire entirely without a reoccupation of Gaza, an option all but ruled out because it would risk major casualties and an international outcry.


While Hamas rejects the Jewish state's existence, Palestinian President Mahmoud Abbas, who rules in areas of the nearby West Bank not occupied by Israelis, does recognize Israel but peace talks between the two sides have been frozen since 2010.


(Additional reporting by Maayan Lubell, Jeffrey Heller and Ori Lewis in Jerusalem and Louis Charbonneau at the United Nations; Writing by Jeffrey Heller; Editing by Mark Heinrich)


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The Allure of Mass Apple Gadget Thefts


















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Novartis’ vaccines business gets chance to prove itself
















ZURICH (Reuters) – The European Medicines Agency has thrown Novartis‘ loss-making vaccines business a lifeline by recommending its meningitis B shot for approval, which means the pressure is on to make the product a commercial success.


Novartis paid $ 5.1 billion to gain full control of U.S. vaccine maker Chiron Corp in 2006 in a major bet on vaccines designed to reduce its dependence on prescription drugs ahead of a wave of patent expiries.













But the division has gobbled up research and development cash with little return, making the European backing for its “MenB” vaccine Bexsero a key event.


“(It) will allow breathing space for management that has been under investor pressure to improve the outlook for the sub-scale vaccines division,” said Deutsche Bank analyst Tim Race.


Chief Executive Joseph Jimenez has stood by the division, saying he still believed it could be a “profitable and important part of the company.” But he has also denied that Novartis is “wed” to any of its units.


Diversifying into vaccines looked a good bet, given they are biological medicines that are less exposed to generic competition. Moreover, the world vaccine market is growing and expected reach $ 40 billion by 2015, according to the Centre for Vaccine Ethics and Policy.


But Novartis’ division has struggled to catch up with market leaders GlaxoSmithKline, Sanofi and Merck. It posted a $ 22 million operating loss in the third quarter – the only one of Novartis’ five units to be in the red.


PROBLEM CHILD


“You can say it’s the problem child of Novartis,” said Birgit Kulhoff, a money manager at private bank Rahm & Bodmer in Zurich. “2014 will be the year when they make the ultimate decision about what they’re going to do with the division.”


The European drug agency’s recommendation, which is likely to be formally endorsed early next year, is clearly good news – but it will not automatically translate into sales.


Bexsero’s success hinges on convincing cash-strapped government healthcare systems to add it to their vaccination programs – and that may not be easy, given the fact that MenB disease, while serious, is becoming rarer.


Bernstein analyst Tim Anderson, for example, forecasts 2020 sales of $ 700 million for the vaccine, a far cry from the multi-billion dollar sales potential heralded by some a few years ago.


Novartis’ head of vaccines Andrin Oswald said he was “quite confident” countries which have a high incidence of the disease, like Britain and Ireland, would add Bexsero to their programs, although he downplayed expectations of strong 2013 sales.


“We plan to start selling next year and then we expect the vaccine to start to ramp up nicely over the years,” Andrin Oswald told Reuters in a telephone interview on Friday.


Oswald disputed that there was a deadline hanging over the division, saying the business had come a long way, having already won approval for another meningitis vaccine Menveo and anticipating approval of its cell culture flu vaccine.


“If I look at our pipeline there are other promising products in there. It may take another few more years but I think as long as we deliver and bring good vaccines and innovation to the market we are on the right track.”


Oswald said Novartis was still in discussions with U.S. health regulators, where there was some skepticism about the public health need for a single MenB shot given the low disease incidence at present.


He said Novartis favored a possible combination shot of Bexsero with Menveo. “If the discussions go as we think we may be able to start Phase III (clinical trials) in a reasonable amount of time,” he said.


PROFITABILITY VS GROWTH


Some analysts are skeptical if the division will be able eke out a profit this year after racking up an operating loss of $ 291 million in the first nine months, despite seasonal flu sales.


“The unit barely breaks even on the back of the seasonal flu vaccine only,” said Vontobel analyst Andrew Weiss. “There’s a huge amount of expenses in R&D really in trying to get away from this seasonality and being a rounder business.”


Jefferies analyst Jeffrey Holford says Novartis could create more value if it were to divest the business – which also contains a diagnostics segment – in two separate parts.


A standalone vaccines business could fetch $ 6.3 billion, while disposing of the diagnostics business could bring in a further $ 1.3 billion, he argued in a September research note.


But Oswald said it took time to build up a vaccines business, arguing: “The key priority right now is not to make the business more profitable but to grow it.”


(Editing by Ben Hirschler and Jane Merriman)


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Film defrocks church hierarchy over handling of sex abuse
















NEW YORK (Reuters) – Four deaf Wisconsin men were some of the first to seek justice after suffering childhood sexual abuse at the hands of a priest, and a new documentary about the Catholic Church‘s poor handling of such cases stemming from the Vatican seeks to make their voices heard.


Mea Maxima Culpa: Silence in the House of God” explores the impact of the Roman Catholic Church’s protocol as dictated from the Vatican for dealing with pedophile priests. It opens in U.S. cinemas on November 16, and will air on cable channel HBO in February.













Though American media coverage about child sex abuse by clergy has been extensive since a slew of cases came to light in Boston in 2002, Oscar-winning documentary director Alex Gibney wanted to connect individual stories with what he sees as systemic failures stemming from the top of the church.


“A lot of individual stories had been done about clerical sex abuse, but I hadn’t seen one that really connected the individual stories with the larger cover-up by the Vatican, so that was important,” Gibney told Reuters in an interview.


The film centers on the group of deaf men and their experiences as young boys attending St. John’s School for the Deaf in St. Francis, Wisconsin.


In a letter to the Vatican in 1998, the late Rev. Father Lawrence Murphy admitted abusing some 200 deaf boys over two decades beginning in the 1950s.


Murphy claimed he had repented, and asked to live out his last years as a priest, and was never defrocked or punished by civil authorities. He died in 1998.


In the film, the men communicate their frustrating attempts to bring their experiences to the attention of religious and civil authorities with effusive sign language and facial expressions, paired with voiceovers by actors such as Ethan Hawke.


The film also traces a convoluted bureaucracy – right up to the cardinal who is now Pope Benedict – to reveal a set of policies that the film portrays as often seeming more interested in preserving the Church’s image.


STRUGGLING TO BE HEARD


“These were deaf men whose voices literally couldn’t be heard, so there was a silence from them, and there was also this silence coming from the church, a refusal to confront this obvious crime, in part because they were covering it up,” said Gibney.


The Vatican has denied any cover-up in the Murphy case and in 2010 issued a statement condemning his abuse. It has criticized media reports about the Church’s handling of the cases as anti-Catholic.


Contrasting that, the film shows interviews with former church officials who talk openly of church policies to handle cases by “rehabilitating” abusive clergymen and snuffing out scandal.


Gibney said that all of the Vatican officials he contacted declined his interview requests.


Raised Catholic himself, Gibney no longer practices organized religion, but empathizes with Catholics who feel a sense of loyalty to the religion’s institutions and acknowledges that criticism of the church can feel like a personal attack.


“Mea Maxima Culpa,” a Latin phrase meaning “my most grievous fault” focuses on the failures of the Catholic Church‘s hierarchy. But Gibney – who won an Oscar for “Taxi to the Dark Side” – said the film’s theme transcends religion and is also relevant for secular institutions.


“This is obviously about the church, but it’s also a crime film,” he said. “It’s about abuse of power and it’s about how institutions instead of reckoning with problems try to cover them up. It’s always the cover-up that creates the problem.”


He cited the Jerry Sandusky sex abuse scandal that rocked Penn State University recently, and the BBC’s poor handling of abuse allegations against the late British TV personality Jimmy Savile as examples of secular institutions brought low by similar issues.


“The thing about predators is that they tend to hide in plain sight,” Gibney said. “You’re seeing it now with Sandusky, you’re seeing it now with Jimmy Savile in Great Britain, and you saw it with Father Murphy in the film.”


Gibney thinks that the public’s stubbornly rosy perceptions of charismatic authority figures, including priests, is a major factor in such scandals.


“They’re often involved in charity or good works,” he said of high-profile abusers. “That seems to give you license to do unbelievable things because people cut you all sorts of slack that they wouldn’t normally do for other people.”


(Editing by Christine Kearney and Richard Chang)


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Jamaica to abolish slavery-era flogging law
















KINGSTON, Jamaica (AP) — Jamaica is preparing to abolish a slavery-era law allowing flogging and whipping as means of punishing prisoners, the Caribbean country’s justice ministry said Thursday.


The ministry said the punishment hasn’t been ordered by a court since 2004 but the statutes remain in the island’s penal code. It was administered with strokes from a tamarind-tree switch or a cat o’nine tails, a whip made of nine, knotted cords.













Justice Minister Mark Golding says the “degrading” punishment is an anachronism which violates Jamaica’s international obligations and is preventing Prime Minister Portia Simpson Miller‘s government from ratifying the U.N. convention against torture.


“The time has come to regularize this situation by getting these colonial-era laws off our books once and for all,” Golding said in a Thursday statement.


The Cabinet has already approved repealing the flogging law and amendments to other laws in the former British colony, where plantation slavery was particularly brutal.


The announcement was welcomed by human rights activists who view the flogging law as a barbaric throwback in a nation populated mostly by the descendants of slaves.


“We don’t really see that (the flogging law) has any part in the approach of dealing with crime in a modern democracy,” said group spokeswoman Susan Goffe.


But there are no shortage of crime-weary Jamaicans who feel that authorities should not drop the old statutes but instead enforce them, arguing that thieves who steal livestock or violent criminals who harm innocent people should receive a whipping to teach them a lesson.


“The worst criminals need strong punishing or else they’ll do crimes over and over,” said Chris Drummond, a Kingston man with three school-age children. “Getting locked up is not always enough.”


The last to suffer the punishment in Jamaica was Errol Pryce, who was sentenced to four years in prison and six lashes in 1994 for stabbing his mother-in-law.


Pryce was flogged the day before being released from prison in 1997 and later complained to the U.N. Human Rights Committee, which ruled in 2004 that the form of corporal punishment was cruel, inhuman and degrading and violated his rights. Jamaican courts then stopped ordering whipping or flogging.


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