Man City losses halve in 2011-12

14 December 2012 Last updated at 11:49 ET

Manchester City has revealed that its financial losses for 2011-12 have halved from a year earlier.

The Premier League champions announced a pre-tax loss of £93.4m, down from £189.6m in 2010-11.

Revenues increased 51% to £231.1m, with the club’s first appearance in the Uefa Champions League contributing more than £22m in new revenue.

The club’s sponsorship deal with Etihad Airways helped commercial partnership revenue double from £48.5m to £97m.

City’s operating loss also improved from a record £194.9m to £104.1m.

Uefa’s Financial Fair Play rules, which say clubs must break even over three years, come into full effect in 2013-14.

Investment impact

City was acquired by Sheikh Mansour of Abu Dhabi in 2008. In its annual report, the club said it had undergone a “significant period of investment” since then. Over that time, it has spent about half a billion pounds on new players.

“The club’s performance in the 2011-12 reporting period demonstrates the tangible and positive impacts of that investment across many areas of our operations,” it said.

It added that its player recruitment strategy had transitioned from one of rebuilding to one of refinement.

“With a relatively young squad that has won an FA Cup and a Barclays Premier League in consecutive seasons, our recruitment needs have been reduced.

“As a result, the amortisation of player contracts and the net impact of player trading on the club’s bottom line has decreased by 27% (£30.3m) over the previous year, consistent with our belief that the peak of the club’s investment in its playing squad has passed.”

The club’s wage bill increased to £178.2m from £153.7m the previous year.

That covered 237 football players and staff and 239 commercial and administration staff.

BBC News – Business

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NKorea rocket launch shows young leader as gambler

PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.

Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.

The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.

Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.

Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.

Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.

The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.

“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.

The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.

Top officials followed Kim in shrugging off international condemnation.

Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.

North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.

Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”

But it is the son who will bask in the glory, and face the international censure that may follow.

Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.

“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.

“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”

Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.

Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.

“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.

Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”

Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.

The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.

On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.

Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.

North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.

The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.

Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.

If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.

____

Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.

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McAfee says will not return to Belize, willing to talk to police

(Reuters) – U.S. software pioneer John McAfee said that he will not return to Belize where police want to question him about a murder case, but that he is willing to let authorities from the Central American nation interview him in a “neutral country.”

McAfee, 67, went into hiding after his American neighbor Gregory Faull was fatally shot in November. He made his way secretly to neighboring Guatemala, but the authorities there deported him to Miami on Wednesday.

“I will not go back to Belize. I had nothing to do with the murder,” a relaxed-looking McAfee said in an interview on CNBC.

Police in Belize want to question McAfee as a “person of interest” in Faull’s killing, though authorities there say he is not a prime suspect. McAfee said he barely knew Faull and had “absolutely nothing” to do with his death.

Belize police say their country’s extradition treaty with the United States extends only to suspected criminals, a designation that does not apply to McAfee.

McAfee, an eccentric tech pioneer, made a fortune from the anti-virus software bearing his name and had lived in Belize for four years.

He has charged that authorities have persecuted him because he refused to pay $ 2 million in bribes, and that the extortion attempt occurred after armed soldiers shot one of his dogs, smashed up his property and falsely accused him of running a methamphetamine laboratory.

Belize’s prime minister has rejected the allegations, calling McAfee paranoid and “bonkers.”

(Reporting by Jim Finkle; Editing by Nick Zieminski)

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A Minute With: Director Peter Jackson on shooting “The Hobbit”

LOS ANGELES (Reuters) – After bringing J.R.R. Tolkien‘s “The Lord of the Rings” trilogy to life, filmmaker Peter Jackson is back in the world of Middle Earth with the author’s prequel, “The Hobbit.”

The three-film series is due to open in U.S. theaters on Friday with “The Hobbit: An Unexpected Journey.”

The Oscar-winning director, 51, told Reuters about the 3D film, including the 48 frames per second (fps) format he used, which was widely debated by fans and critics.

Q: You originally intended “The Hobbit” to only be two parts. Why stretch it out to three?

A: “Back in July, we were near the end of our shoot and we started to talk about the things that we had to leave out of the movies. There’s material at the end of ‘The Return of the King’ (the final part of ‘The Lord of the Rings‘ trilogy) in the appendices that takes place around the time of ‘The Hobbit.’

“We were thinking, this is our last chance because it’s very unlikely we’re ever going to come back to Middle Earth as filmmakers. So we talked to the studio and next year we’re going to be doing another 10 to 12 weeks of shooting because we’re now adapting more of Tolkien’s material.”

Q: At what point did you decide you would direct the film yourself after originally handing it to Guillermo del Toro?

A: “At the time (we wrote the script), I was worried about repeating myself and worried that I was competing with myself. I thought it would be interesting to have another director with a fresh eye coming in and telling the story. But after Guillermo left, having worked on script and the production for well over a year at that stage, I was very emotionally attached to it. I just thought, this is an opportunity I’m not going to say no to.”

Q: You hired Gollum actor Andy Serkis to do second unit directing on the film, something he has never done before. What made you hand the task to a novice?

A: “I know how strongly Andy has been wanting to direct. One of the problems with second unit is that you tend to have conservative footage given to you by the director. They play it safe. I knew that I wouldn’t get that from Andy because he’s got such a ferocious energy. He goes for it and doesn’t hold back. I knew that if Andy was the director I would be getting some interesting material, that it would have a life and energy to it.”

Q: What inspired you to make a film in 48 fps?

A: “Four years ago I shot a six or seven minute King Kong ride for Universal Studios’ tram ride in California. The reason we used the high frame rate was that we didn’t want people to think it’s a movie. You want that sense of reality, which you get from a high frame rate, of looking in to the real world. At the time, I thought it would be so cool to make a feature film with this process.”

Q: Not everyone has embraced “The Hobbit” in 48 fps.

A: “For the last year and a half there’s been speculation, largely negative, about it and I’m so relieved to have gotten to this point. I’ve been waiting for this moment when people can actually see it for themselves. Cinephiles and serious film critics who regard 24 fps as sacred are very negative and absolutely hate it. Anybody I’ve spoken to under the age of 20 thinks it’s fantastic. I haven’t heard a single negative thing from the young people, and these are the kids that are watching films on their iPads. These are the people I want to get back in the cinema.”

Q: Why all the hoopla over a frame rate?

A: “Somehow as humans, we have a reaction to change that’s partly fear driven. But there are so many ways to look at movies now and it’s a choice that a filmmaker has. To me as a filmmaker, you’ve got to take the technology that’s available in 2012, not the technology we’ve lived with since 1927, and say how can we enhance the experience in the cinema? How can we make it more immersive, more spectacular?”

Q: George Lucas sold Lucasfilm to Disney for $ 4 billion. Do you think you will sell your New Zealand facility Weta someday?

A: “I would if I want to retire at some stage and want to have a nice easy life, which will hopefully happen one day. But in the foreseeable future, the fact that I’m an owner of my own digital effects facility is a fantastic advantage for me.”

Q: How so?

A: “When we asked the studio if we could shoot ‘The Hobbit‘ at 48 fps, we promised the budget would be the same. But it actually does have a cost implication because you’ve got to render twice as many frames and the rendering takes more time. The fact that we owned Weta and could absorb that in-house was actually part of the reason we were able to do the 48 frames.”

(Editing by Patricia Reaney)

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Vision insurance tied to better eye health

NEW YORK (Reuters Health) – Older adults’ eyesight may suffer irreversibly if they don’t have vision insurance, suggests a new study that argues eye health should be a mandatory part of regular health insurance policies.

Researchers found that people between 40 and 65 years old with vision insurance were twice as likely to see an eye doctor in the past year, compared to those without coverage.

And people who saw an eye doctor were more likely to be able to read printed material and to recognize someone from across the street.

“The study finds that having vision insurance increases the likelihood of an eye care visit, and that a prior-year eye care visit is associated with better vision status,” the researchers write in the Archives of Ophthalmology.

Led by Yi-Jhen Li at the University of South Carolina in Columbia, the team notes that by 2020 it’s estimated that over 5.6 million Americans will have an age-related eye disease that may lead to vision loss.

But the researchers add that permanent vision loss from some of those eye diseases – including glaucoma and cataracts – can be staved off with early detection and treatment.

“We want to get them in the door. If they get in the door, they’re likely get what they need,” said John Crews, a health scientist at the U.S. Centers for Disease Control and Prevention in Atlanta, who was not involved in the research.

“The problem from a public health point of view is, ‘what is impeding people from getting access to care?’” Crews said.

For the new study, Li and colleagues wanted to see if lack of vision insurance might stand in the way of working-age adults’ ability to go to an eye doctor and whether that would affect their vision.

They used a 2008 survey of 27,152 people from across eight U.S. states. Of those, 11,541, or 43 percent, did not have vision insurance.

Of the 15,611 people who did have vision insurance, about 64 percent had seen an eye doctor in the previous year, compared to about 45 percent of people without coverage.

After taking certain traits – such as age, sex and race – into account, the researchers also found that generally healthy people with vision insurance were 24 percent more likely to report that they had no trouble recognizing friends from across the street and 34 percent more likely to say they could read printed material without problems, compared to those without the insurance.

The difference was even greater among a subsample of people who had common eye ailments like glaucoma, cataracts or age-related macular degeneration – those with vision insurance were 37 percent more likely to say they could read and 45 percent were more likely to recognize a friend from afar.

In both the general population and those with eye diseases, people who saw a doctor within the past year were also more likely to report better vision.

Li and colleagues, who were not available for comment, note in their paper that the age group they focused on, between 40 and 64, are too young to be covered by Medicare but are “at high risk for eye diseases that cause gradual vision loss that is preventable.”

Theirs is the first study, they add, to examine how having vision insurance, versus general health insurance, influences how often people in this working-age segment of the population get regular eye care.

While 85 percent of the people in their sample had health insurance, the researchers write, just about 68 percent of those with health insurance had vision coverage. And, they say, their study indicates that it is vision insurance, but not health insurance, that determines not only whether people go to the eye doctor, but also the quality of their reported vision.

Making vision coverage a mandatory part of standard insurance policies would raise costs by about three percent, they conclude, calling that a “good value” compared to the costs of the vision loss that could be prevented.

The American Academy of Ophthalmology says older adults should have regular eye checkups every two to four years. The group recommends that people 65 years old and up see an eye doctor every one or two years.

SOURCE: http://bit.ly/UiObja Archives of Ophthalmology, online December 10, 2012.

Seniors/Aging News Headlines – Yahoo! News

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Google Maps Restores Order to the Universe

Well, that pretty much settles it. Everyone please go back to whatever you were doing.

Today, Google (GOOG) released its free Google Maps for iPhone app in Apple’s (AAPL) App Store. Besides reestablishing galactic tranquility, the new app brings iPhone users all the features they were missing by using Apple’s new home-grown Maps app. Apple’s Maps were pretty and slick, but the service was crippled from the get-go. Sure, turn-by-turn directions were great to have, but losing such things as transit information was a pretty severe price to pay for it.

Google Maps also adds a delightful new feature that Apple’s map app was lacking: accuracy. Reports from Apple Maps users of wrong directions and incorrect information have been legion. I, for one, used Apple’s Maps app to find a bookstore to buy a present for a seven-year-old girl’s birthday party. Apple’s Maps sent me to a Barnes & Noble (BKS), but it was a Barnes & Noble-operated college bookstore at St. Francis College (I’m sure the birthday girl is smart, but the gifts there weren’t terribly festive). When I looked it up on Google’s app after the fact, the special status of the bookstore was indicated.

Google’s new, native app (in this weird interregnum, iPhone users could continue to use a Web version of Google Maps, but the new app is faster, smoother, and more feature-laden) includes old friends such as Street View, so you can see what a destination looks like, as well as public transit information: Bus lines, subways, and commuter rail are all part of the navigation mix. Try to look that information up in Apple’s Maps, and the app suggests third-party apps to provide this data. That’s like a restaurant serving you an appetizer, then refusing to provide an entrée but very nicely suggesting some other places you can go to get a main course. Um, thanks, but I’m already here—why can’t I have a full dinner?

Google’s new app also incorporates more data for the locations you may be looking for. Look up a restaurant on Apple’s maps app, and you could pull some data from Yelp (YELP), but the same search on Google Maps yields Zagat ratings, menus, links to OpenTable and other useful information.

Here’s what you don’t get with Google Maps instead of Apple’s Maps: You’ll lose Flyover, Apple’s gee-whiz feature where you can see a satellite-image of an area in a 3D-like perspective. Flyover was impressive to look at, but it’s always been little more than a gimmick. After all, being able to travel virtually over land and between buildings is not nearly as useful as Google’s Street View, where you can actually see where you’re going. Unless you’re Superman, I suppose. OK, fine—if you’re Superman, Flyover is incredibly useful. The rest of us are better off with more terrestrial navigation capabilities.

You also lose Siri integration, so you can’t activate Google Maps by voice. That’s a bummer, but not a dealbreaker. Google Maps more than compensates for that by linking to your Google account, so any Maps search you’ve performed on your PC will be listed in the history of the Google Maps app. This is particularly helpful if you’re planning a trip: You can find your destinations on your laptop or tablet at home (which is easier than entering all that info on a tiny touch screen), and all your places will be a tap away on your phone when you get in the car.

Last but not nearly least, Google Maps now has turn-by-turn navigation, a feature that had previously been reserved for Android users only. Find a destination, and Google will guide you by voice and image, showing and telling you the next turn you have to make.

And for this, we actually have Apple’s Maps app to thank. Turn-by-turn navigation was the one feature you couldn’t get through Google Maps, part of the ongoing blood feud between the two companies. But once Apple offered the feature in its mapping app, Google was forced to respond. Presumably, Apple engineers and coders are hard at work at their answer to this latest salvo from Mountain View.

As consumers, we should be happy, as all this competition works to our benefit. Think about it that way, and Apple Maps was the best thing that ever happened to Google Maps.

Businessweek.com — Top News

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Cuban lawmakers meet to consider economy, budget

HAVANA (AP) — Cuban lawmakers are holding the second of their twice-annual sessions with a year-end report expected on the state of the country’s economy.

Legislators are also to approve next year’s budget.

Cuban leaders have sometimes used the parliamentary gatherings to make important announcements or policy statements.

Observers will be watching for word on the progress of President Raul Castro‘s economic reform plan and efforts to promote younger leaders.

The unicameral parliament will reconvene in February with a new membership following elections. It is then expected to name Castro to another five-year term.

State-run media said Castro presided over Thursday’s session.

It was not open to international journalists.

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How “Life of Pi” animators visualized Ang Lee’s blank slate

LOS ANGELES (TheWrap.com) – “Life of Pi” is a movie that has the proverbial cast of thousands… of animals, that is. In one shot set on the ocean, there are 40,000 flying fish. In another one set on a floating island, there are 60,000 meerkats. And not one of them was living and breathing, of course.

“No real meerkats were used,” senior animation supervisor Erik-Jan De Boer told the audience at an effects-themed Q&A following TheWrap’s screening of the movie at the Landmark Theatre on Monday night. “Except of course we went to meerkat sanctuaries and zoos to shoot a lot of reference footage…”

“And the two of us watched every episode of ‘Meerkat Manor,’” interrupted visual effects supervisor Bill Westenhofer. “We were gonna watch one, but it gets addictive.”

That was about all the time these two had to indulge in reality TV during the long gestation and post-production of Pi, which establishes a new benchmark for awe-inspiring digital trickery – particularly in 3D, or “stereo,” as Westenhofer and De Boer refer to the effects-complicating process.

“In total,” De Boer told TheWrap’s editor-in-chief Sharon Waxman, “we animated 580 animals in about 290 shots for the movie, which includes a giraffe, a fox, a fish, and of course the hyena and orangutan.” Not to mention the little matter of the tiger, “Richard Parker,” whose appearances as one of the movie’s co-leads are 15 percent real, 85 percent digital.

That’s not including the aforementioned meerkat and flying fish extras, brought to life via a software program appropriately titled Massive. (If only it had been around in Cecil B. DeMille‘s day.)

“The flying fish sequence is where we start to take some artistic liberties, since Pi’s telling you a tale,” said Westenhofer. “Maybe there were a thousand flying fish in reality, or even a hundred, but you’re seeing his mind’s eye, which saw this multitude, so we have 40,000 in one particular spot. The Massive software is almost artificial intelligence, where you write a little program that’s the brain for each individual fish, and it decides if it’s going to hop out of the water, and how long it’s going to fly; if it sees someone in its path, it does avoidance.”

But before any of that was animated, there was the live-action filming that took place on a 70 meter-by-30 meter wave tank that director Ang Lee had specially built for the film. And there, said Westenhofer, “you had (star) Suraj Sharma on a boat with two guys in rubber rafts just chucking rubber fish at him as hard as they possibly can. It’s a good mixture of the low-tech and the high-tech.”

Of course, it wasn’t fish but previous experience with big cats that got Rhythm & Hues the assignment from Lee to go from lions to tigers and Pi. “He knew we had done the lion in the first Narnia movie. He asked, ‘Does a digital character look more or less real in 3D?’ We looked at each other and thought that was a pretty good question.”

As well as a leading one, since Lee had already made the decision at that point, in 2009, to shoot in 3D. “We took one of the shots and rendered it in stereo and said ‘Yeah, it gives it a little more presence and makes it more real.’” Good answer! “That was the start of our relationship with him.”

Although “Life of Pi” doesn’t exactly go for documentary-style realism, every effort was made to keep the tiger’s actions and reactions to what experts and trainers told them a creature would really do in those situations. Not having him spout any Aslan-style aphorisms was a nice start on that de-anthropomorphizing.

“We always strive for photorealism,” said De Boer – even when they’re working on a Narnia or Cats and Dogs. “Motion-wise we strive for perfect physicality and try to get that animal to behave as characteristically as possible – and then we always have to make them talk or dance or do something really weird, and the realism goes out the window and everybody knows that we were there. For me what was really cool about this movie is not only do we stick with the real animal but we also have to intercut it with a live-action animal, so that made the challenge for us that much bigger.”

Added Westenhofer, “We told the crew we wanted to work ourselves out of any recognition by making it look as real as possible.”

It was at least as big of a challenge, as far as Westenhofer was concerned, to make the digital waves match or amplify the real tank waves – and to create the film’s skies completely from scratch. “There’s not many films where we spend this much time on the water. I think ‘Old Man and the Sea’ harkens back! But even with ‘Titanic,’ you’ll see the water and then go inside.” For much of “Life of Pi,” “inside” amounts to a few furtive peeks under a tarp.

Hence what, on a project like this, becomes a fine line where digital effects providers are also, to some extent, taking over the role of cinematography and art direction. Going to work on filling up these blue-screen shots, the Rhythm & Hues people might well have been humming Bruce Springsteen’s “Empty Sky” to themselves.

“What I’m absolutely most proud of is with these visual effects is that we were given a blank slate for a lot of these shots,” Westenhofer told the audience. “We were given a boat in front of a blue screen, and it was the visual effects team who really were a lot of the creative innovators on the movie. Certainly it was Ang’s vision we were creating. But we’d start a shot, and though Ang absolutely knows what he wants, his communication is sometimes not as specific as you want. Instead of saying ‘I want a three-quarters cloudy sky with yellow over here and some blue,’ he’d say ‘I want a pensive sky.’

Or, ‘I want it to be operatic.’ So it would be our job to go translate that, and the team did a great job of supplying that.

“And Claudio Miranda did an awesome, awesome job on the cinematography, but a lot of the cinematography on the ocean is digital effects.”

Movies News Headlines – Yahoo! News

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Mandela’s Infection May Be Pneumonia

Nelson Mandela is being treated for a lung infection, a term often used synonymously with pneumonia.

Elderly people are at an increased risk for infections in general – more so if the person has many chronic medical problems, but as people age their immune systems are less capable of fighting off infections.

South African officials say Mandela’s lung infection is “recurring.” The former president is 94 years old.

As elderly people become more and more infirm, they have a decreased cough response and may aspirate oral secretions into their lungs, raising the risk of infections. And if someone is bedridden, their breaths become more shallow, raising the risk even more.

It may seem surprising that it took so long for Mandela’s diagnosis to be made public. However, it’s possible that it took this long to make a diagnosis.

Elderly people respond differently to pneumonia, meaning they might lack common symptoms like fever and cough, and instead show signs of confusion. The evaluation of change in physical or mental condition in someone of Mandela’s age is broad with much testing needed to make a diagnosis.

There are different types of pneumonia including viral (caused by influenza), bacterial (caused by pneumococcus or tuberculosis), fungal and parasitic. I suspect Mr. Mandela most likely has a viral or bacterial pneumonia. If he does, they are likely treating him with antibiotics and providing respiratory support.

Pneumonia is a leading infectious cause of death in the elderly. But with proper treatment, many do recover.

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Fed ties rate pledge to a threshold as new stimulus set

WASHINGTON (Reuters) – The Federal Reserve, announcing a new round of monetary stimulus, took the unprecedented step on Wednesday of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.

It was the latest in a series of unorthodox measures taken by central banks around the world as major economies face erratic, sub-par recoveries from the global financial crisis and recession of 2007-2009.

The Fed said it expects to hold rates steady until its new threshold on unemployment was reached as long as inflation does not threaten to break above 2.5 percent and inflation expectations are contained.

Fed officials, who cut their forecasts for both economic growth and inflation next year, also replaced an expiring stimulus program with a fresh round of Treasury debt purchases.

“The committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions,” the Fed’s policy-setting panel said in a statement at the close of a two-day meeting.

Fed officials committed to purchase $ 45 billion in longer-term Treasuries each month on top of the $ 40 billion per month in mortgage-backed bonds the U.S. central bank started buying in September. They also repeated a pledge to keep pumping money into the economy until the outlook for the labor market improves “substantially.”

The Fed will fund the new Treasury purchases with an expansion of its $ 2.8 trillion balance sheet. Under the “Operation Twist” program, the Fed bought an identical amount but paid for them with proceeds from sales and redemptions of short-term debt.

Some policymakers view actions that expand the Fed’s balance sheet as economically more potent than those that do not. However, Fed Chairman Ben Bernanke told a news conference that the stimulus would remain about the same, given that the central bank is still purchasing a combined $ 85 billion per month in longer-term securities.

“They see an anemic economy, and they’re doing all they can to get any economic progress,” said Alan Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio.

The Fed’s actions initially gave a small lift to U.S. stocks prices, but the major stock indexes closed mostly unchanged, while government bond prices fell. Oil prices rose and the dollar weakened against the euro.

Fed policymakers voted 11-1 to back the new plan. Jeffrey Lacker, president of the Richmond Federal Reserve Bank, dissented, as he has at every meeting this year, expressing opposition both to the bond buying and the new economic thresholds.

SWEATING A WEAK RECOVERY

The newly unveiled numerical policy guidelines offered the most specific suggestion yet that the Fed is willing to tolerate slightly higher inflation as it tries to juice up a moribund economy and spur stronger job growth.

A drop in the unemployment rate to 7.7 percent in November from 7.9 percent in October was driven by workers exiting the labor force, and therefore did not come close to satisfying the condition the Fed has set for trimming its stimulus.

“Decisions taken today further strengthen the Fed’s commitment to generate a stronger recovery and substantially improve conditions in the labor market,” said Michael Gapen, an economist at Barclays in New York.

In response to the financial crisis and recession, the Fed slashed overnight rates to zero almost exactly four years ago and bought some $ 2.4 trillion in mortgage and Treasury securities to keep long-term rates down.

Despite its unconventional and aggressive efforts, U.S. economic growth remains tepid. Gross domestic product grew at a 2.7 percent annual rate in the third quarter, but a Reuters poll published on Wednesday showed economists expect the economy to expand at just a 1.2 percent pace in the current quarter.

Businesses have hunkered down, fearful of a tightening of fiscal policy as politicians in Washington wrangle over ways to avoid a $ 600 billion mix of spending reductions and expiring tax cuts set to take hold at the start of 2013.

Bernanke has warned that running over this “fiscal cliff” would lead to a new recession. He told reporters the Fed could ramp up its bond buying “a bit,” but emphasized that monetary policy has limits and could not fully offset the impact.

NEW TACK ON RATES

By setting thresholds to help guide its decision on when to eventually hike rates, the Fed was able to jettison a previous prediction that borrowing costs would remain at rock bottom levels until at least mid-2015.

Officials were uncomfortable with guidance that relied on a calendar date, and they are hopeful the new framework will help financial markets assess incoming economic data in a way that helps them correctly guess were monetary policy is heading.

Bernanke emphasized that the central bank would look at a range of indicators, not just the rates of unemployment and inflation, in determining when to finally raise rates.

“Reaching the thresholds will not immediately trigger a reduction in policy accommodation,” said Bernanke, adding that the central bank would not be on “auto pilot.”

“No single indicator provides a complete assessment of the state of the labor market,” he said.

The prior practice of fixing an end point was criticized by some economists as sending a message that the Fed expected the economy to be weak until then. Bernanke said the new framework was consistent with the earlier calendar guidance, because officials do not expect the unemployment rate to reach the 6.5 percent threshold level until sometime in 2015.

Indeed, a fresh set of economic projections from the Fed put the jobless rate in a 6 percent to 6.6 percent range in the fourth quarter of 2015. At the same time, the projections showed that at no point over that forecast horizon does the central bank see inflation topping its 2 percent target.

Officials held to their assessment that they could eventually push the jobless rate down to a 5.2 percent to 6 percent range without sparking inflation, although Bernanke cautioned that policy would have to start tightening before it fell so low. In its statement, the Fed said its long-term asset purchase program would end well before any rate hike.

Fed policymakers see GDP expanding between 2.3 percent and 3.0 percent next year. That’s down from the 2.5 percent to 3.0 percent they forecast in September, but is still a bit more optimistic than most private forecasters. The Reuters poll of economists found a median U.S. growth estimate of 2.1 percent for next year.

(Writing by Pedro Nicolaci da Costa; Editing by Andrea Ricci, Tim Ahmann and Leslie Adler)

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