FBI probe of Petraeus began with 'suspicious emails'

WASHINGTON (Reuters) - The FBI investigation that led to the discovery of CIA Director David Petraeus' affair with author Paula Broadwell was sparked by "suspicious emails" that initially did not contain any connection to Petraeus, U.S. law enforcement and security officials told Reuters on Saturday.

But the CIA director's name unexpectedly turned up in the course of the investigation, two officials and two other sources briefed on the matter said.

It was "an issue with two women and they stumbled across the affair with Petraeus," a U.S. government security source said.

The Washington Post reported on Saturday that the FBI probe was triggered when Broadwell sent threatening emails to an unidentified woman close to the CIA director.

The woman went to the FBI, which traced the threats to Broadwell and then uncovered explicit emails between Petraeus and Broadwell, the Post said.

Attempts by Reuters and other news media to reach Broadwell, an Army reserve offer and author of a biography of Petraeus, have not been successful.

The FBI and CIA declined comment on Saturday.

Many questions in the case remain unanswered publicly, including the identity of the second woman; the precise nature of the emails that launched the FBI investigation; and whether U.S. security was compromised in any way.

Nor is it clear why the FBI waited until Election Day to tell U.S. Director of National Intelligence James Clapper, who oversees the CIA and other intelligence agencies, about its investigation involving Petraeus.

The CIA director announced his resignation suddenly on Friday, acknowledging an extramarital affair and saying he showed "extremely poor judgment.

The developments likely ended the public career of one of the United States' most highly regarded generals, who was credited with helping pull Iraq out of civil war and led U.S. and NATO troops in Afghanistan.

Meanwhile, new details emerged on Saturday about developments in the final days leading to Petraeus' departure from atop the CIA.

Clapper was notified by the FBI on Tuesday evening about 5 p.m. - just as returns in the U.S. presidential election were about to come in - about "the situation involving Director Petraeus," a senior intelligence official said. Clapper and Petraeus then spoke that evening and the following morning.

WHITE HOUSE NOTIFIED WEDNESDAY

"Director Clapper, as a friend and a colleague and a fellow general officer, advised Director Petraeus that he should do the right thing and he should step down," the official said.

Clapper is a retired Air Force lieutenant general; Petraeus served nearly four decades in the U.S. Army.

On Wednesday, Clapper notified the National Security Council at the White House that Petraeus was considering resigning and President Barack Obama should be informed, the official said.

U.S. law enforcement and intelligence officials agreed to discuss the Petraeus matter only on condition of anonymity because of the issue's sensitivity and because it is the subject of a law enforcement investigation.

Once Petraeus' name turned up in the investigation, the importance of the FBI inquiry was immediately escalated, as investigators became concerned the CIA chief somehow might have been compromised, the law enforcement official said.

However, the official and two sources briefed on the matter said no evidence has turned up suggesting Petraeus had become vulnerable to espionage or blackmail. At this point, it appears unlikely that anyone will be charged with a crime as a result of the investigation, the official said.

The FBI investigation began fairly recently - months ago rather than years ago, when Petraeus would still have been in uniform as one of the U.S. Army's top field commanders, the official said.

Representative Peter King, Republican chairman of the House of Representatives' Homeland Security Committee, said in an interview on MSNBC the FBI was "investigating or monitoring ... the director of the CIA for four or five months."

Several officials briefed on the matter said senior officials at the Pentagon, CIA and Congress knew nothing of the FBI's investigation of Petraeus until Thursday afternoon at the earliest, and some key officials were not briefed on the details until Friday.

There is no evidence at this time that anyone at the White House had knowledge of the situation involving Petraeus prior to the U.S. presidential election on Tuesday, which saw Obama elected to a second four-year term.

Another U.S. government security source said it was not until Friday afternoon that some members of the House and Senate intelligence oversight committees were notified about Petraeus' resignation by Clapper's office.

The congressional committees were told that it was a personal issue that Petraeus had to discuss with his wife. When pressed, a representative of the Office of the Director of National Intelligence said it involved another woman.

(Writing by Warren Strobel; Additional reporting by Doug Palmer and Matt Spetalnick; Editing by Todd Eastham)

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Justin Bieber and Selena Gomez have broken up, reports say

LOS ANGELES (Reuters) – Pop star Justin Bieber and his girlfriend, Selena Gomez, a Disney actress and singer, have broken up, ending a relationship that made them one of Hollywood’s most high-profile young couples, media reports said.

Bieber, 18, and Gomez, 20, disclosed their relationship in February 2011 when they appeared together at an Oscar night party after months of rumors of their dating.

E! Online late on Friday was the first to report the split, with other media outlets including US Weekly and People also saying the relationship was over. The reports cited unnamed sources close to the couple.

Representatives for Bieber and Gomez did not returns calls or emails on Saturday.

Bieber has released two No. 1 albums in just over a year – the holiday-themed “Under the Mistletoe” and his latest, “Believe.” In September, he topped Billboard’s “21 Under 21″ list of top young musical acts. It was his second year in a row with the title.

Gomez rose to fame as a teenager in the Walt Disney Co television series “Wizards of Waverly Place” and has enjoyed success as a pop singer.

(Reporting By Alex Dobuzinskis; Editing by Greg McCune and Peter Cooney)

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Boehringer Ingelheim to start late-stage hepatitis C drug trial

BOSTON (Reuters) – Boehringer Ingelheim said on Saturday it plans to initiate a late-stage clinical trial of its experimental hepatitis C treatment following promising results from earlier studies.

The company announced final data from a mid-stage trial of its treatment regimen which showed that 69 percent of patients in the study were free of the virus 12 and 24 weeks following the end of treatment.

Hepatitis C is a blood-borne infectious disease of the liver that can lead to liver failure and transplant.

Historically, hepatitis C has been treated with pegylated interferon and ribavirin, but treatment lasts as long as 48 weeks and interferon is associated with flu-like side effects.

The goal of drugmakers now, including Boehringer, Vertex Pharmaceuticals Inc, Gilead Sciences Inc and Bristol-Myers Squibb Co is to develop products that do not need to be combined with interferon. Most analysts consider Gilead to currently be at the forefront of the race.

Full results from Boehringer’s trial, known as SOUND-C2, were presented at the annual meeting of the American Association for the Study of Liver Diseases in Boston. Preliminary data were presented earlier this year.

Boehringer’s trial tested a combination of BI-201335, a protease inhibitor, BI-207127, a polymerase inhibitor, and ribivirin.

Boehringer is a privately held company headquartered in Ingelheim, Germany.

(Reporting By Toni Clarke; Editing by Marguerita Choy)

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Ohio teen gets prison for life in Craigslist murders

AKRON, Ohio (Reuters) – Seventeen-year-old Brogan Rafferty was sentenced to life in prison without parole Friday for his role in the killing of three men, two of whom were lured by a Craigslist ad promising work on an Ohio farm.

Rafferty was 16 when he was arrested in November 2011, but was tried as an adult. He was convicted late last month in the murders of David Pauley, 51, of Norfolk, Virginia; Ralph Geiger, 56, of Akron, Ohio; and Timothy Kern, 47, of Massillon, Ohio.

Rafferty also got 10 years for the attempted murder of Scott Davis, who was shot in the arm while escaping after meeting Rafferty and alleged triggerman Richard Beasley.

Prosecutors called the teen an apt pupil to Beasley, 53, who is also charged in the murders.

Rafferty testified that he was terrified of the man he had considered a father figure and spiritual adviser after he saw Beasley shoot Geiger in the head execution-style.

Beasley allegedly enticed Geiger with the offer of a non-existent caretaker job, killed him, stole his identity, and then drew other victims by posting the bogus job on Craigslist.

Rafferty, wearing prison stripes with hands clasped in front of him, told the court Friday that Beasley an “evil, deceitful cruel murderer,” but admitted the he bore some responsibility.

“I was involved, I didn’t like it, and now I see there were many options I couldn’t see then that I see now, but I can’t make anything better and I’m sorry,” he said.

Judge Lynn Callahan called Rafferty’s case “heartbreaking” but said she did not accept that he had no way out of his situation.

“You embraced the evil, you studied it,” she said. She said Rafferty had been dealt “a lousy hand in life,” but she found nothing in the case that could be chalked up to the recklessness of youth.

“You could have been so much more; you are so intelligent,” the judge told Rafferty.

During the trial, jurors heard testimony that the teen helped dig graves for some of the men and was found in possession of guns and knives stolen from them after Beasley shot them.

Beasley’s trial is scheduled in the same courtroom for January 7. He faces the death penalty if convicted. Both Rafferty’s and Beasley’s attorneys are under a gag order and are not permitted to talk to the media.

Under Ohio law, juveniles older than 15 who are charged with a serious offense and crimes that involve a firearm are sent to adult court for trial.

Last summer, a U.S. Supreme Court decision struck down mandatory life sentences for juveniles. The high court found that judges and juries passing sentence on juvenile murders must weigh mitigating circumstances, including the youth’s role and family background.

A 2005 Supreme Court decision made it unconstitutional to execute anyone under the age of 18.

Rafferty’s attorney Jill Flagg objected to his sentence and will appeal.

In other incidents involving Craigslist and other social media, people advertising goods for sale or responding to ads have been attacked and killed.

In 2009, a former medical student was accused of killing a masseuse he met through Craigslist. In February, two men in Tennessee were accused of killing a man and a woman for “unfriending” the daughter of one of the suspects on Facebook.

(Reporting by Kim Palmer; Editing by Mary Wisniewski and Eric Walsh)

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Twin explosions strike southern Syrian city

BEIRUT (AP) — Syria‘s state-run news agency says two large explosions have struck the southern city of Daraa, causing multiple casualties and heavy material damage.

SANA did not immediately give further information or say what the target of Saturday’s explosions was.

The Britain-based Syrian Observatory for Human Rights says the blasts went off near a branch of the country’s Military Intelligence in Daraa.

The Observatory, which relies on a network of activists on the ground, says the explosions were followed by clashes between regime forces and rebels fighting to topple President Bashar Assad.

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Was Petraeus affair linked to lax Libya response?

CIA Director David Petraeus abruptly resigned Friday, citing an extramarital affair and the need to sort out the “personal and professional issues” involved.

The former commander of forces in Iraq and Afghanistan had built a stellar and nearly unassailable reputation – but mounting criticism of the Central Intelligence Agency’s response to the Benghazi, Libya, terrorist attack in September was beginning to tarnish that reputation.

Word of Mr. Petraeus’s resignation sent ripples of stunned surprise through both the intelligence and military communities, raising questions that revolved around how long the affair had been going on and how an officer known for his rigorous self-discipline – and attention to his reputation within the media — could have made such a lapse in judgment.

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In a letter of resignation accepted by the White House, Petraeus said he had been married 37 years but had exercised “very poor judgment” in choosing to enter into an extramarital affair.

Petraeus, who was widely celebrated as a military commander and even occasionally mentioned as a potential presidential candidate, was sworn in as head of the CIA in September 2011 – and had kept a low profile since. Now speculation is sure to proliferate over whether that low profile resulted from Petraeus focusing on America’s intelligence gathering or on personal matters.

In particular, members of Congress and other officials demanding answers about the Benghazi attack on the US consulate that resulted in the deaths of four Americans – including the US ambassador to Libya, Christopher Stephens, and two CIA agents – will want to know if there was any link between Petraeus’s extramarital activities and what has been increasingly criticized as the CIA’s weak performance on the night of the Benghazi attack.

More broadly, the reason for Petraeus’s departure will raise questions about any compromising of US covert operations and intelligence. The potential for blackmail of intelligence officers is always a concern about the spy corps, but the involvement of the nation’s top spy in an extramarital affair takes the concern to a new level.

The Federal Bureau of Investigation has been probing Petraeus and the potential security risks posed by his affair, CNN reported late Friday afternoon.

In the weeks since the Benghazi attack, officials have leaked information, including how Petraeus kept information on the CIA’s role in Benghazi so private that even Secretary of State Hillary Rodham Clinton was left to call Petraeus as the attack unfolded to try to get intelligence information from him.

Last week, CIA officials revealed that in fact, the intelligence agency’s operations in Benghazi dwarfed diplomatic operations at the consulate and that the CIA maintained what was described as an “annex,” about a mile from the diplomatic mission.

State Department officials have said there was an informal understanding that the annex and its agents would come to the assistance of the consulate (which had private contractors providing security) if a need arose. CIA officials insist their agents responded to the consulate’s distress calls within a half-hour.

In a statement released Friday afternoon, President Obama praised Petraeus for his “extraordinary service” to the country, adding, “By any measure, through his lifetime of service, David Petraeus has made our country safer and stronger.”

In a statement, Sen. John McCain (R) of Arizona highlighted Petraeus’s role in Iraq, saying that his “inspirational leadership and his genius were directly responsible – after years of failure – for the success of the surge in Iraq.”

But Petraeus’s success in Iraq and Afghanistan was a result to a certain extent of his focus on a counterinsurgency strategy that involved large numbers of troops fighting the enemy by incorporating nation-building into the battle. When Mr. Obama named Petraeus to head the CIA, it was widely interpreted as the president’s signal that he intended to wind down America’s wars and shift from a counterinsurgency strategy to counterterrorism.

Obama did not cite Petraeus’s reason for resigning but did say, “Going forward, my thoughts and prayers are with Dave and Holly Petraeus, who has done so much to help military families through her own work. I wish them the very best at this difficult time.”

Mrs. Petraeus is the assistant director of the Consumer Financial Protection Bureau, where she supports veterans and troops facing difficulties as a result of the financial crisis.

Obama initially tried to convince Petraeus not to resign, according to some souces. “I am told that President Obama tried to talk Petraeus out of resigning, but Petraeus took the samurai route and insisted that he had done a dishonorable thing and now had to try to balance it by doing the honorable thing and stepping down as CIA director,” Tom Ricks reports in his blog “The Best Defense.”

Such a move is in keeping with the military culture in which Petraeus rose to the rank of four-star general.

Under the Uniform Code of Military Justice, adultery is a punishable offense for soldiers if the conduct is shown to be detrimental “to good order and discipline in the armed forces or was of a nature to bring discredit upon the armed forces.”

Obama said that Michael Morell, deputy director of the CIA, would take over as acting director. Mr. Morell served briefly as acting director after Leon Panetta left the agency last year to become Defense secretary.

Petraeus was set to testify Thursday at a closed-door session of the Senate Intelligence Committee on the Benghazi attack, but it was unclear if his resignation would alter that schedule.

Sen. Dianne Feinstein (D) of California, the Intelligence Committee chair, told NBC News that Petraeus’s personal mistake should not have led to his resignation.

“I would have stood up for him,” she said. “I wanted him to continue. He was good, he loved the work, and he had a command of intelligence issues second to none.”

Obama, after winning reelection Tuesday, was already expected to make some changes in his national security team for a second term, but early speculation had been that Petraeus would stay on at the CIA. Now the job of spy chief will be added to the new-team mix.

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Philip Roth says he’s done writing

NEW YORK (AP) — Exit, Philip Roth? Having conceived everything from turning into a breast to a polio epidemic in his native New Jersey, Roth has apparently given his imagination a rest.

The 79-year-old novelist recently told a French publication, Les inRocks, that his 2010 release “Nemesis” would be his last. Spokeswoman Lori Glazer of Houghton Mifflin Harcourt said Friday that she had spoken with Roth and that he confirmed his remarks. Roth’s literary agent, Andrew Wylie, declined comment.

Roth certainly produced, completing more than 20 novels over half a century and often turning out one a year. He won virtually every prize short of the Nobel and wrote such classics as “American Pastoral” and “Portnoy’s Complaint.”

His name will remain on new releases, if only because the Library of America has been issuing hardcover volumes of his work. Roth also is cooperating with award-winning biographer Blake Bailey on a book about his life.

The author chose an unexpected forum to break the news, but he has been hinting at his departure for years. He has said that he no longer reads fiction and seemed to say goodbye to his fictional alterego, Nathan Zuckerman, in the 2007 novel “Exit Ghost.”

Retirement is rarely the preferred option for writers, for whom the ability to tell stories or at least set down words is often synonymous with life itself. Poor health, discouragement and even madness are the more likely ways literary careers end. Roth apparently is fit and his recent novels had been received respectfully, if not with the awe of his most celebrated work.

“I don’t believe it,” Roth’s friend and fellow writer Cynthia Ozick said upon learning the news. “A writer who stops writing while still breathing has already declared herself posthumous.”

His parting words from “Nemesis”: “He seemed to us invincible.”

Roth’s interview appeared in French and has been translated, roughly, by The Associated Press. He tells Les inRocks that “Nemesis” was “mon dernier livre” (“My last book”) and refers to “Howard’s End” author E.M. Forster, and how he quit fiction in his 40s. Roth said he doesn’t plan to write a memoir, but will instead go through his archives and help ensure that Bailey’s biography comes out in his lifetime.

Explaining why he stopped, Roth said that at age 74 he became aware his time was limited and that he started re-reading his books of the past 20-30 years, in reverse order. He decided that he agreed with what the boxer Joe Louis had said late in life, that he had done the best he could with what he had.

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California teen steps into rattlesnake nest, survives

SAN DIEGO (Reuters) – A teenage California girl searching for a cell phone signal to call her mother in a rural area outside San Diego inadvertently stepped into a nest of rattlesnakes and was bitten six times, but survived.

The 16-year-old, Vera Oliphant, spent four days in the intensive care unit of Sharp Grossmont Hospital, and doctors gave her 24 vials of antivenom after she was bitten by an adult rattlesnake and five young rattlers outside her uncle’s home.

“I was trying to find a signal to call my mom and text my boyfriend,” Oliphant said on Friday, a day after she was released from the hospital following the October 27 incident.

“I didn’t see them until I already stepped on their nest and I felt them biting me.”

“My vision started to go right away. First it looked like the snakes blended into the leaves and then I started seeing black spots around the edges and I started blacking out.”

She returned to her uncle’s home in Jamul, outside San Diego, and he immediately packed her into the car and rushed her to the emergency room, she said.

On the way, she talked to her mom and her boyfriend, who told her to stay calm so the venom wouldn’t spread.

“I told my mom and my boyfriend I love them in case I don’t get to see them again,” she said.

Doctors there administered 24 vials of antivenom to quash the dangerous toxins, according to a hospital spokesman. Snakebites usually aren’t fatal, although a handful of people die in the United States each year from snake bites, including bites from rattlesnakes.

Oliphant has recovered and will be returning to classes at Chaparral High School in El Cajon on Monday. She said the next time she can’t get a signal, she will handle it differently.

“Be careful where you step,” she said. “If you don’t need to, just wait until you are somewhere that you can call people.”

(Editing By Cynthia Johnston and Todd Eastham)

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Spotify to raise $100 million at $3 billion valuation – report

(Reuters) – Spotify is in the middle of a $ 100 million financing round that could value the music streaming company at just over $ 3 billion, the Wall Street Journal reported citing sources.

The Journal said Spotify would raise the fresh capital from multiple investors including Goldman Sachs. The WSJ report did not name any other investors.

Spotify has raised capital from outside investors several times since it set up shop in 2006, and was earlier reported to have been looking to secure a capital boost of about $ 200 million, at a valuation of about $ 4 billion.

Kleiner Perkins Caufield & Byers, Accel Partners and others have invested about $ 189 million in the company in its prior financing rounds.

The company has over 15 million active users and 4 million paying subscribers, for its on-demand service, which offers unlimited music streaming of some 18 million tracks.

(Reporting by Himank Sharma in Bangalore)

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Syria opposition bloc elects Christian as leader

DOHA, Qatar (AP) — Syria‘s main opposition group in exile has elected a Christian Paris-based former geography teacher as its new president.

George Sabra said Friday that his election as head of the Syrian National Council is a sign that the opposition is not plagued by sectarian divisions.

Sabra says the SNC‘s main demand is to receive weapons from the international community. The U.S. and some other foreign backers of rebels fighting the regime of President Bashar Assad have so far refused to send weapons for fear they can fall into the wrong hands.

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Boehner: Raising tax rates 'unacceptable'

Raising tax rates is "unacceptable" to House Speaker John Boehner as he prepares to open negotiations on the looming "fiscal cliff" with the president and congressional Democrats, he told "World News" anchor Diane Sawyer today in an exclusive interview.

"Raising tax rates is unacceptable," Boehner, R-Ohio, said in his first broadcast interview since the election Tuesday.

"Frankly, it couldn't even pass the House. I'm not sure it could pass the Senate."

That stance could set up a real showdown with the White House given that the president has said he would veto any deal that does not allow tax cuts for the rich to expire. But the speaker said that Republicans would put new tax revenue on the table as leaders work toward a deal.

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"I would do that if the president was serious about solving our spending problem and trying to secure our entitlement programs," Boehner said. "If you're increasing taxes on small-business people, it's the wrong approach."

Nevertheless, Boehner added that he is at least willing to listen to the president's proposals, even if they clash with his party's principles.

"Of course, we'll talk about it. We talk about all kinds of things we may disagree on," Boehner said. "I'm the most reasonable, responsible person here in Washington. The president knows it. He knows that he and I can work together. The election's over. Now it's time to get to work."

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The fiscal cliff is a mix of tax increases and spending cuts set to take effect at the end of the year that could sink the economy back into recession. Boehner told Sawyer he imagines that negotiations on a bipartisan deal will begin soon, although he did not reveal whether any talks had already been scheduled.

Still, he said he hoped the framework of a deal could be completed by the end of the year in order to direct the next Congress to work out the details.

"The American people elected new representatives," he said. "They're the ones who ought to be the ones to do this.

"There are things that we can do in the lame duck to avert the fiscal crisis, but we want to do this the right way. We don't want to rush through this in the next two to three weeks. And what do you get? You can't rewrite the tax code in the next two or three weeks. And, so, there's a lot of possibilities in terms of how we proceed, and I'm confident that we can."

Boehner also said he welcomes back Rep. Paul Ryan, whose profile has exploded since he was chosen by Mitt Romney as the vice presidential nominee. Ryan won re-election to his House seat in Wisconsin at the same time he lost the vice presidency, but Boehner demurred when asked whether his place on the presidential ticket would increase his leadership profile.

"Because he ran for the vice presidency, is he the leader of the Republican party now?" Sawyer asked.

"Oh, I wouldn't think so. Paul Ryan's a policy wonk," Boehner said. "He's involved in the cause of trying to bring us pro-growth economic agendas for America and making sure that we're doing this in a fiscally responsible way.

"I'm glad that Paul Ryan's coming back to the Congress. I would expect he would continue as chairman of the Budget Committee," he said.

"Probably nobody in the Congress knows more about pro-growth economic policies other than Paul Ryan. I don't think there's many people in the Congress who understand the entitlement crisis that we're facing more than Paul Ryan. I think he'll be an important voice in this discussion and in this debate."

Boehner also said that once he saw that Mitt Romney would lose the race for the White House, he went to sleep at about 11:15 p.m. on election night with the realization that he would wake up to divided government, but still "slept like a baby."

"I may not like the five cards that have been dealt to me, but those are the cards I've got in my hand, and my job on behalf of the American people is to find a way to vote with my Democratic colleagues and a Democratic president to solve America's problems," he said. "If there was one mandate that came out of the election, it was find a way to work together to address our problems."

Sawyer asked the speaker whether Romney should take responsibility for those election results, but Boehner said he is proud of his campaign.

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VP Joe Biden guest stars as celebrity crush on “Parks and Rec”

LOS ANGELES (Reuters) – Someone has a big crush on U.S. Vice President Joe Biden – and now she is getting to meet him.

Biden will make his TV acting debut with a cameo on NBC‘s comedy “Parks and Recreation” as the celebrity crush of actress Amy Poehler‘s ditzy local councilwoman Leslie Knope, NBC said on Thursday.

Biden, 69, will play himself in the episode “Leslie vs. April,” airing November 15, where Knope, a city councilwoman for the fictional small town of Pawnee, Indiana, has a surprise meeting with the vice president in Washington D.C.

Knope has long described her ideal man as having the “brains of George Clooney and the body of Joe Biden.”

“Meeting Vice President Biden was a thrill for me and for Leslie,” Poehler said in a statement.

“He was a good sport and a great improviser. The vice president maintained his composure while I harassed him and invaded his personal space. The nation of ‘Parks and Rec’ will be forever grateful,” she added.

The scenes with Biden were shot in July in the chambers of the vice president’s ceremonial office, during the TV show’s recent trip to the nation’s capital to film scenes for this season’s storylines.

The biggest challenge of landing Biden’s cameo was keeping it a secret before Tuesday’s U.S. elections. Airing the episode prior to November 6 could have been equivalent to a campaign contribution to advertise a candidate, executive producer Michael Schur told Entertainment Weekly.

“Parks and Recreation” follows the Pawnee Parks department and its tireless deputy Knope, who puts all her efforts into improving her little hometown.

This is a big season for Poehler’s character, who is finally elected into city government, gets engaged to campaign advisor Ben Wyatt and meets her political heroes including Senators Barbara Boxer, Olympia Snow and John McCain, who were featured in September’s season premiere.

(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)

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Democrats declare Obama the winner in Florida

MIAMI (Reuters) – Florida‘s Democratic Party declared victory for President Barack Obama in the closely divided battleground state on Thursday, as he clung to a narrow but apparently insurmountable lead in the glacially slow tallying of votes from Tuesday’s election.

If Obama wins Florida, it will add to his Electoral College margin and he will have won all of the key U.S. swing states except North Carolina, which he carried in 2008.

“On behalf of Florida Democrats, I wish President Barack Obama congratulations on his re-election and on his winning Florida’s 29 electoral votes,” Rod Smith, chairman of the Florida Democratic Party, said in a statement.

In a tacit concession, Republican Party of Florida spokesman Brian Burgess said in an email that he and other Romney supporters were “obviously not happy with the result” in the Sunshine State.

“But given the wave that we saw all over the country, we’re glad that we gave them enough of a fight in Florida to prolong the battle here as long as we did,” Burgess said.

As of Thursday evening, Obama had 49.92 percent of the statewide vote, versus 49.22 percent for Romney, according to the Florida Division of Elections.

Two of the three counties where ballots were still being tallied, Broward and Palm Beach, are heavily Democratic. The third county, Duval, has more registered Democrats than Republicans but has traditionally leaned Republican in presidential contests.

Just 58,055 votes separated the two candidates, but that was far more than in the 2000 election, when Republican George W. Bush won Florida by 537 votes and captured the White House after a recount dispute that reached the U.S. Supreme Court.

The slow-moving vote count in Florida has already made it the brunt of jokes on late-night television and conjured up ugly memories of the situation 12 years ago, when Florida was the cause of electoral gridlock.

This time, Florida seemed almost seemed irrelevant since Obama handily won re-election without its 29 electoral votes – the biggest prize of any of the nine key U.S. swing states.

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No officials were willing on Thursday to predict exactly when the race in the fourth most populous U.S. state, which has 67 counties, would be officially declared as decided. But barring any big surprises, Obama looked set to get a bump from Florida that would lift his electoral vote count to 332 over 206 for Romney.

“It’s appalling that two days after the election, Florida was not able to report our presidential election results,” Smith said in his statement.

“This embarrassment lays at the feet of Governor Rick Scott, who made a decision to cut early-voting in half and continually refused to extend early voting hours in light of the record turnout,” Smith said.

In comments earlier in Orlando, the Republican governor adamantly refused to accept responsibility for Florida’s failure to hold an election that was free of controversy.

Scott’s decision not to extend early voting, after it was cut back to eight days from 14 by the Republican-controlled legislature, has been cited by many Floridians as a cause of exceedingly long voter lines on Tuesday.

Scott told Reuters, “We did the right thing” when asked about the decision, which many saw as a move to blunt voter turnout for Obama.

The length of ballots, which included 11 proposed state constitutional amendments backed by the legislature, has also been blamed for long lines at polling places and delays in tallying final results. Scott said: “The amendments don’t go through the governor. The amendments only go through the legislature.”

Smith attributed Obama’s victory, at least in part, to what he described as “the strongest, largest ground game” Democrats had ever mounted in Florida, all part of a carefully calculated get-out-the vote effort.

The Obama campaign also cited a large turnout by the state’s 1.4 million Hispanics, who voted heavily for the president. Obama won a record 61 percent of Hispanic votes in Florida, up from 57 percent in 2008, according to exit polling data compiled by Bendixen & Amandi, research and media consultants for the Obama Hispanic campaign.

Democrats made surprising inroads in the Cuban-American community, capturing 48 percent of the traditionally conservative Cuban-American vote, according to Bendixen & Amandi, surpassing the 35 percent mark set by Democratic President Bill Clinton in 1996.

“This really is a sea change,” said Sergio Bendixen, a longtime Miami pollster. “The Cuban community is no different from anywhere else in the country. It is lower middle-class, it does not have health insurance and it wants to have it. It counts on Medicare and Social Security and it’s finally figured out which party is defending their interests.”

He said the growing population of 380,000 Puerto Ricans in central Florida was also pivotal. They preferred Obama over Romney by a margin of 83 percent to 17 percent.

(Additional reporting by David Adams in Miami, Barbara Liston in Orlando and Michael Peltier in Tallahassee; Editing by Philip Barbara and Peter Cooney)

Seniors/Aging News Headlines – Yahoo! News

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Exclusive: Google Ventures beefs up fund size to $300 million a year

SAN FRANCISCO (Reuters) - Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.

Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.

It puts the firm on the same footing as more established corporate venture funds such as Intel's Intel Capital, which typically invests $300-$500 million a year.

"It puts a lot more wood behind the arrow if we need it," said Bill Maris, managing partner of Google Ventures.

Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.

Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.

Every year, it typically funds 40-50 "seed-stage" deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.

LACKING SUPERSTARS

Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.

Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm's recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.

Soon it could have even more cash to play around with. "Larry has repeatedly asked me: 'What do you think you could do with a billion a year?'" said Maris, referring to Google chief executive Larry Page.

(Editing by Muralikumar Anantharaman)

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Myanmar says Obama to visit later this month

YANGON, Myanmar (AP) — President Barack Obama will make a groundbreaking visit later this month to Myanmar, an official said Thursday, following through with his policy of rapprochement to encourage democracy in the Southeast Asian nation.

The Myanmar official speaking from the capital, Naypyitaw, said Thursday that security for a visit on Nov. 18 or 19 had been prepared, but the schedule was not final. He asked not to be named because he was not authorized to give information to the media.

The official said Obama would meet with opposition leader Aung San Suu Kyi as well as government officials including reformist President Thein Sein.

It would be the first-ever visit to Myanmar by an American president. U.S. officials have not yet announced any plans for a visit, which would come less than two weeks after Obama’s election to a second term.

Obama’s administration has sought to encourage the recent democratic progress under Thein Sein by easing sanctions applied against Myanmar’s previous military regime.

Officials in nearby Thailand and Cambodia have already informally announced plans for visits by Obama that same week. Cambodia is hosting a summit meeting of the Association of Southeast Asian Nations, and Thailand is a longtime close U.S. ally.

The visit to Myanmar, also known as Burma, would be the culmination of a dramatic turnaround in relations with Washington as the country has shifted from five decades of ruinous military rule and shaken off the pariah status it had earned through its bloody suppression of democracy.

Obama’s ending of the long-standing U.S. isolation of Myanmar’s generals has played a part in coaxing them into political reforms that have unfolded with surprising speed in the past year. The U.S. has appointed a full ambassador and suspended sanctions to reward Myanmar for political prisoner releases and the election of Nobel laureate Suu Kyi to parliament.

From Myanmar’s point of view, the lifting of sanctions is essential for boosting a lagging economy that was hurt not only by sanctions that curbed exports and foreign investment, but also by what had been a protectionist, centralized approach. Thein Sein’s government has initiated major economic reforms in addition to political ones.

A procession of senior diplomats and world leaders have traveled to Myanmar, stopping both in the remote, opulent capital city, which was built by the former ruling junta, and at Suu Kyi’s dilapidated lakeside villa in the main city of Yangon, where she spent 15 years under house arrest. New Zealand announced Thursday that Prime Minister John Key would visit Myanmar after attending the regional meetings in Cambodia.

The most senior U.S. official to visit was Hillary Rodham Clinton, who last December became the first U.S. secretary of state to travel to Myanmar in 56 years.

The Obama administration regards the political changes in Myanmar as a marquee achievement in its foreign policy, and one that could dilute the influence of China in a country that has a strategic location between South and Southeast Asia, regions of growing economic importance.

But exiled Myanmar activists and human rights groups are likely to criticize an Obama visit as premature, rewarding Thein Sein before his political and economic reforms have truly taken root. The military — still dominant and implicated in rights abuses — has failed to prevent vicious outbreaks of communal violence in the west of the country that have left scores dead.

Asia News Headlines – Yahoo! News

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How did America become so polarized?

WASHINGTON (AP) — The election laid bare a dual — and dueling — nation, politically speaking, jaggedly split down the middle on the presidency and torn over much else. It seems you can please only half of the people nearly all of the time.

Americans retained the fractious balance of power in re-electing President Barack Obama, a Republican House and a Democratic Senate, altogether serving as guarantors of the gridlock that voters say they despise. Slender percentages separated winner and loser from battleground to battleground, and people in exit polls said yea and nay in roughly equal measure to some of the big issues of the day.

Democracy doesn't care if you win big, only that you win. Tuesday was a day of decision as firmly as if Obama had run away with the race. Democrats are ebullient and, after a campaign notable for its raw smackdowns, words of conciliation are coming from leaders on both sides, starting with the plea from defeated Republican rival Mitt Romney that his crestfallen supporters pray for the president.

But after the most ideologically polarized election in years, Obama's assertion Wednesday morning that America is "more than a collection of red states and blue states" was more of an aspiration than a snapshot of where the country stands.

"It's going to take a while for this thing to heal," said Ron Bella, 59, a Cincinnati lawyer who lives in Alexandria, Ky. He is relieved Obama won, but some of his co-workers are in a "sour mood" about it.

"They feel like the vast majority of the country wanted Romney, and the East and the West coasts wanted Obama," he said. "I'm not sure exactly why that is, but there just seems to be such hatred for Obama out there."

Compromise was a popular notion in the hours after Obama's victory and an unavoidable one, given the reality of divided government. But the familiar contours of partisan Washington were also in evidence, especially the notion that compromise means you do things my way.

As Democratic Rep. Steve Israel of New York put it, "If you refuse to compromise, we are going to beat you." Israel, chairman of the Democratic Congressional Campaign Committee, said the election showed "if you are an extremist tea party Republican, you are going to lose."

Senate Republican Leader Mitch McConnell of Kentucky said pointedly that Republicans will meet Obama halfway "to the extent he wants to move to the political center" and propose solutions "that actually have a chance of passing."

In New York's bustling Times Square, hope, skepticism and the usual polarities were all to be found when people talked about the president. "He may not have done a great job in my mind but I kinda trust him," said Jerry Shul. "I have faith he will get with the Republicans and get something done."

A less-flattering George Dallemand called this "a moment of truth" for the country. "I guess we have to wish for the best now, but I still think he is socialism."

In Miami, Karen Fitzgerald, 55, wore a black dress and said she was in mourning over Romney's defeat.

"It's an upsetting day," she said. But she took some comfort from her Democratic friends on Facebook, who have stopped chiding the other side in their posts. "Now they're all saying we need to work together and be united," she said. "Maybe we can."

In Springfield, Ohio, an "elated" Frank Hocker, 67, hoped Republicans would get the message to get out of Obama's way. "There was a backlash," he said. "For this obstructionist House and those tea party people, I hope they learned their lesson. I hope they learned their lesson: Don't stop the progress of this country."

In Chicago, Obama supporter Scherita Parrish, 56, predicted the president will reach out to Republicans but may not get much back.

"But the people have spoken," she said. "They need to lick their wounds, get on with it and start working with the president."

Unity is a challenge not just for Obama but for the Republicans, who won less than 30 percent of the growing Hispanic vote and not even one in 10 black voters. Obama built a strong Electoral College majority, if only a narrow advantage in the popular vote, despite losing every age group of non-Hispanic white voters.

Surveys of voters found Obama's health care law to be as divisive as ever, with just under 50 percent wanting it repealed in whole or part, and 44 percent liking it as is or wanting more of it.

But democracy doesn't care about exit polls, either, and the election almost certainly means Republicans can forget about trying to roll it back now.

In reaffirming divided government, though, Americans all but ensured colossal fights are ahead over the shape of government and Obama's agenda. He is out to break a wall of Republican opposition to tax increases on the wealthy — a move that about half the voters in exit polls thought was a good idea. And extraordinarily difficult negotiations are imminent as the president and Congress try to make a deal to avoid the "fiscal cliff" — steep spending cuts and a variety of tax increases in January.

In the end, voters split about equally on whether Obama or Romney would be better at handling the economy.

Then again, they were divided down the middle on whether Obama or his predecessor, George W. Bush, deserves most of the blame for the economy's problems.

So it goes in the 50-50 nation, give or take.

___

Associated Press writers Christine Armario in Miami, Michael Tarm in Chicago, David Martin in New York, Amanda Myers in Cincinnati and Ann Sanner in Columbus, Ohio, contributed to this report.

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Taylor Swift reigns over Billboard 200, Meek Mill debuts high

LOS ANGELES (Reuters) – Country-pop star Taylor Swift held onto the top spot on the Billboard 200 album chart on Wednesday as her latest album “Red” kept rapper Meek Mill from the top spot.

“Red,” Swift’s fourth studio album safely took the No. 1 position after selling 344,000 copies according to figures from Nielsen SoundScan.

Last week, “Red” scored the highest first week U.S. sales in a decade after selling 1.2 million copies. The album has outsold One Direction’s “Up All Night” to become the second-biggest album of 2012, behind Adele’s juggernaut record “21,” which has sold more than 4 million copies this year.

Rapper Meek Mill entered the chart at No. 2 with his debut studio album “Dreams & Nightmares,” selling 164,000 copies. The rapper collaborated with fellow Maybach Music artists for his debut, including Trey Songz, Wale, Rick Ross and Mary J. Blige.

Ahead of the holiday season, two festive albums debuted on the chart, with veteran crooner Rod Stewart’s “Merry Christmas Baby” at No. 3 and Trans-Siberian Orchestra’s extended play record “Dreams of Fireflies (On a Christmas Night)” at No. 9.

Country singer Toby Keith landed at No. 6 with his latest album “Hope on the Rocks,” following his appearance and best music video win at the County Music Association (CMA) awards last week.

Country group Little Big Town also saw a boost from their CMA vocal group of the year win as their album “Tornado” climbed the chart to No. 10.

Canadian singer Neil Young and his band Crazy Horse scored their second top ten album this year with “Psychedelic Pill” at No. 8, following their “Americana” album in June.

Over on the Digital Songs chart, Korean rapper Psy held the top spot with his infectious dance-pop single “Gangnam Style,” while Bruno Mars’ “Locked Out of Heaven” remained at No. 2 and Ke$ ha’s “Die Young” was a non-mover at No. 3.

(Reporting by Piya Sinha-Roy, editing by Jill Serjeant)

Celebrity News Headlines – Yahoo! News

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Los Angeles mandates condoms for porn actors, industry threatens suit

LOS ANGELES (Reuters) – Los Angeles County voters passed a ballot initiative mandating that pornographic film actors wear condoms during sex scenes, prompting a trade group on Wednesday to threaten to sue and take production elsewhere.

Measure B, which was sponsored by the group AIDS Healthcare Foundation, won approval on Tuesday by a margin of 55.85 percent to 44.15 percent, according to the Los Angeles County Registrar-Recorder’s office.

“This is what democracy looks like; we took this to county government, and they didn’t act so we took it directly to the voters, and they spoke conclusively,” AIDS Healthcare Foundation President Michael Weinstein said.

The law requires adult film actors filming in Los Angeles County to use condoms during sex scenes. Most U.S. pornographic productions are made in the county’s San Fernando Valley.

Diane Duke, chief executive for the industry group Free Speech Coalition, told Los Angeles County supervisors in a letter on Wednesday that the law was unconstitutional and that it fell under state jurisdiction, not that of local government.

“Therefore, we will file suit and challenge this intolerable law in court,” Duke said in the letter. A copy was provided to Reuters.

She said the adult filmmakers had been approached to move elsewhere, adding: “In the upcoming weeks and months, we will provide a roadmap for adult production to move its over a billion dollar industry and its accompanying 10,000 jobs to these welcoming communities.”

David Sommers, a spokesman for the Board of Supervisors, declined to respond specifically to the letter, saying he had not read it. He said county health officials were still grappling with the law’s implications.

“This type of enforcement is a new thing for us and it’s a one-of-a-kind law and so how we move forward with its implementation is a conversation we’re just beginning to have given how the voters decided Measure B,” he said.

The initiative requires porn producers to get a health permit from Los Angeles County to make their movies showing explicit sex and nudity. Using condoms on set would be a condition of obtaining that permit.

California workplace laws mandate the use of condoms by porn performers, but AIDS Healthcare officials say the statute is not specifically aimed at the industry and is widely violated.

The Free Speech Coalition said in its letter that such requirements would impose “excessive costs of compliance.”

(Reporting by Dan Whitcomb; Editing by Cynthia Osterman)

Sexual Health News Headlines – Yahoo! News

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Apple slides to five-month low, uncertainty grows

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Merkel says Germany, Britain must work together on EU

LONDON (Reuters) – Germany and Britain must cooperate to work round their differences on the European Union‘s long-term spending plans, German Chancellor Angela Merkel said on Wednesday.

“Despite differences that we have it is very important for me that the UK and Germany work together,” Merkel said through a translator before a meeting in London with Prime Minister David Cameron to discuss the EU‘s 2014-2020 budget.

“We always have to do something that will stand up to public opinion back home. Not all of the expenditure that has been earmarked has been used with great efficiency … We need to address that,” she said.

EU leaders meet in Brussels on November 22-23 to try to secure a seven-year budget for the 27-nation bloc amid signs of differences of opinion over what action should be taken.

(Reporting by Peter Griffiths; Editing by Andrew Osborn)

Europe News Headlines – Yahoo! News

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Obama wins second term after Ohio, Iowa victories

Supporters cheer after networks project an Obama victory. (Chip Somodevilla/Getty Images)

President Barack Obama handily defeated Gov. Mitt Romney and won himself a second term Tuesday after a bitter and historically expensive race that was primarily fought in just a handful of battleground states. Networks project that Obama beat Romney after nabbing the crucial state of Ohio.

The Romney campaign's last-ditch attempt to put blue-leaning Midwestern swing states in play failed as Obama's Midwestern firewall sent the president back to the White House for four more years. Obama picked up the swing states of New Hampshire, Michigan, New Mexico, Iowa, Wisconsin, Pennsylvania, Minnesota, and Ohio. Florida and Virginia are still too close to call, but even if he won them, they would not give Romney enough Electoral College votes to put him over the top. The popular vote will most likely be much narrower than the president's Electoral College victory.

The Obama victory marks an end to a years-long campaign that saw historic advertisement spending levels, countless rallies and speeches, and three much-watched debates.

The Romney campaign cast the election as a referendum on Obama's economic policies, frequently comparing him to former President Jimmy Carter and asking voters the Reagan-esque question of whether they are better off than they were four years ago. But the Obama campaign pushed back on the referendum framing, blanketing key states such as Ohio early on with ads painting him as a multimillionaire more concerned with profits than people. The Obama campaign also aggressively attacked Romney on reproductive rights issues, tying Romney to a handful of Republican candidates who made controversial comments about rape and abortion.

These ads were one reason Romney faced a steep likeability problem for most of the race, until his expert performance at the first presidential debate in Denver in October. After that debate, and a near universal panning of Obama's performance, Romney caught up with Obama in national polls, and almost closed his favoribility gap with the president. In polls, voters consistently gave him an edge over Obama on who would handle the economy better and create more jobs, even as they rated Obama higher on caring about the middle class.

But the president's Midwestern firewall--and the campaign's impressive grassroots operation--carried him through. Ohio tends to vote a bit more Republican than the nation as a whole, but Obama was able to stave off that trend and hold an edge there over Romney, perhaps due to the president's support of the auto bailout three years ago. Romney and his running mate Paul Ryan all but moved to Ohio in the last weeks of the campaign, trying and ultimately failing to erase Obama's lead there.

A shrinking electoral battleground this year meant that only 14 states were really seen as in play, and both candidates spent most of their time and money there. Though national polls showed the two candidates in a dead heat, Obama consistently held a lead in the states that mattered. That, and his campaign's much-touted get out the vote efforts and overall ground game, may be what pushed Obama over the finish line.

Now, Obama heads back to office facing what will most likely be bitterly partisan negotiations over whether the Bush tax cuts should expire. The House will still be majority Republican, with Democrats maintaining their majority in the Senate.

The loss may provoke some soul searching in the Republican Party. This election was seen as a prime opportunity to unseat Obama, as polls showed Americans were unhappy with a sluggish economy, sky-high unemployment, and a health care reform bill that remained widely unpopular. Romney took hardline positions on immigration, federal spending, and taxes during the long Republican primary when he faced multiple challenges from the right. He later shifted to the center in tone on many of those issues, but it's possible the primary painted him into a too-conservative corner to appeal to moderates during the general election. The candidate also at times seemed unable to effectively counter Democratic attacks on his business experience and personal wealth.

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Rihanna unveils Chris Brown duet “Nobodies Business”

LOS ANGELES (Reuters) – R&B star Rihanna unveiled a duet entitled “Nobodies Business” with ex-boyfriend Chris Brown on Tuesday, three years after Brown was charged with assaulting her.

The song was part of an official track list that Barbadian singer Rihanna tweeted to her followers for her upcoming album “Unapologetic,” and comes after weeks of speculation in the media that the couple have rekindled their romance being spotted together at numerous events.

While Rihanna, 24, has stayed mum on her relationship status with Brown, the “Turn Up The Music” singer attended Rihanna‘s Halloween party last week and tweeted a photograph of himself dressed in Arab robes and a rifle.

Brown, 23, is currently halfway through his five-year probation after pleading guilty to assaulting Rihanna on the eve of the Grammy awards in 2009. He was ordered to complete community service and a domestic violence program.

Brown was given permission by a Los Angeles judge to embark on his European tour at a recent hearing overseeing his progress on his probation.

The former couple have had a tumultuous relationship in the last three years, including a restraining order against Brown following the assault.

But recently the two singers have made peace, coming together on a remix of Rihanna‘s raunchy song “Birthday Cake” earlier this year.

The Barbadian singer told Oprah Winfrey in an emotional interview in August that she and Brown now had a “very close friendship,” and that she still loved him.

Other collaborations on Rihanna‘s upcoming “Unapologetic” album include rapper Eminem, newcomer singer-songwriter Mikky Ekko and rapper Future.

(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)

Celebrity News Headlines – Yahoo! News

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Pfizer arthritis drug wins approval, to challenge Humira

(Reuters) – U.S. regulators on Tuesday approved Pfizer Inc‘s Xeljanz treatment for rheumatoid arthritis, one of the company’s most potentially lucrative experimental drugs, which is now poised to compete with Abbott Laboratories Inc‘s top-selling Humira.

The U.S. Food and Drug Administration said it had approved Pfizer’s pill for patients with moderate to severe rheumatoid arthritis who have not benefited from or been able to tolerate the standard oral treatment, methotrexate. Xeljanz can be used by itself or in combination with methotrexate and certain other standard treatments.

Industry analysts have predicted Pfizer’s drug, which works differently from current treatments and is better known by its chemical name tofacitinib, could eventually capture annual sales of up to $ 3 billion. The revenue is sorely needed, amid plunging sales of its Lipitor cholesterol fighter and other Pfizer medicines facing cheaper generics.

As a twice-daily pill, Xeljanz could prove more attractive to some patients than Abbott’s $ 8 billion-a-year Humira, which is given by injection every other week.

But Abbott has said Humira sales will continue growing by leaps and bounds, despite competition from Xeljanz.

“It is understandable why (new) patients might prefer an oral therapy versus one that requires needle-based delivery,” Sanford Bernstein analyst Tim Anderson said in a research note. He added that patients already benefiting from other medicines are unlikely to switch to a new product.

The FDA approved a 5 milligram dose of Xeljanz, given twice a day. But the agency said further safety data are needed to assess a 10 milligram, twice-daily dose, that Pfizer had also put before regulators.

Anderson said Xeljanz will likely cost $ 25,000 a year, in line with injectable medicines. Besides Humira, the injectables include Amgen Inc’s Enbrel and Johnson & Johnson’s Remicade — all three of which work by blocking a protein called tumor necrosis factor.

Anderson predicted the Pfizer pill, approved two weeks before Wall Street expected, will generate peak annual sales of at least $ 2.5 billion. Sales could be considerably higher, he said, if Xeljanz is also eventually approved for psoriasis, inflammatory bowel disease and other inflammatory conditions.

Rheumatoid arthritis and related diseases have been one of the most lucrative segments for drugmakers, with more than $ 20 billion in annual sales.

Rheumatoid arthritis is an autoimmune disease in which the body’s immune system mistakenly attacks healthy tissue, causing inflammation and pain in the joints. It affects an estimated 1.5 million Americans, the FDA said.

An estimated 30 percent to 40 percent of patients with rheumatoid arthritis do not respond to available drugs, meaning there is room for other options.

Pfizer’s drug works by blocking molecules called Janus kinases which are linked to joint inflammation. The drug was associated with an increased risk of serious infections, tuberculosis, cancers and lymphoma. Humira, Embrel and Remicade also make patients more prone to serious infections and other complications.

The FDA said it approved the drug with a risk evaluation and mitigation strategy, requiring safety information on the drug’s package insert label and a communication plan to inform healthcare workers about its risks.

The agency is also requiring Pfizer to conduct a postmarketing study to evaluate the drug’s long terms effects on heart disease, cancer and serious infections.

Pfizer shares rose 1.5 percent in after-hours trade to $ 25.09.

(Reporting By Ransdell Pierson; Editing by Leslie Adler, David Gregorio and Carol Bishopric)

Medications/Drugs News Headlines – Yahoo! News

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Exclusive - Amazon to win EU e-book pricing tussle with Apple

BRUSSELS (Reuters) - European Union regulators are to end an antitrust probe into e-book prices by accepting an offer by Apple and four publishers to ease price restrictions on Amazon, two sources said on Tuesday.

That decision would hand online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in the fast-growing market publishers hope will boost revenue and increase customer numbers.

"Faced with years of court battles and uncertainty I can understand why some of these guys decided to fold their cards and take the whipping," said Mark Coker, founder of Smashwords, an ebook publisher and distributor that works with Apple.

"It's certainly another win for Amazon," he added. "I have not seen the terms of the final settlement, but my initial reaction is that it places restrictions on what publishers can do, slowing them down just when they need to be more nimble."

A spokesman at the EU Commission said its investigation was not yet finished. Amazon and Apple declined to comment.

In September, Apple and the publishers offered to let retailers set prices or discounts for a period of two years, and also to suspend "most-favored nation" contracts for five years.

Such clauses bar Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA's Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, from making deals with rival retailers to sell e-books more cheaply than Apple.

The agreements, which critics say prevent Amazon and other retailers from undercutting Apple's charges, sparked an investigation by the European Commission in December last year.

Pearson Plc's Penguin group, which is also under investigation, did not take part in the offer.

The EU antitrust authority, which in September asked for feedback from rivals and consumers about the proposal, has not asked for more concessions, said one of sources.

"The Commission is likely to accept the offer and announce its decision next month," the source said on Tuesday.

Antoine Colombani, spokesman for competition policy at the European Commission, said: "We have launched a market test in September and our investigation is still ongoing."

Amazon declined to comment, while Apple did not respond to an email seeking comment.

Companies found guilty of breaching EU rules could be fined up to 10 percent of their global sales, which in Apple's case could reach $15.6 billion, based on its 2012 fiscal year.

AGGREGATE PRICING

UBS analysts estimate that e-books account for about 30 percent of the U.S. book market and 20 percent of sales in Britain but are minuscule elsewhere. When Amazon launched its Kindle e-reader, it charged $9.99 per book.

Apple's agency model let publishers set prices in return for a 30 percent cut to the maker of iPhone and iPad.

The U.S. Department of Justice is investigating e-book prices. HarperCollins, Simon & Schuster and Hachette have settled, but Apple, Pengin Group and Macmillan have not.

The DOJ settlement required that retailers must at least break even selling all ebooks from a publisher's available list, according to Coker and Joe Wikert, general manager and publisher at O'Reilly Media Inc.

It was not clear if EU regulators will include a similar requirement, which would prohibit Amazon from pricing all ebooks at a loss, said Wikert, a former publishing executive.

In the United States, Amazon will likely price popular titles at a loss and try to make up the difference on a publisher's other ebooks, he said.

Coker said any such rule could be dangerous in Europe, which still has distinct markets.

"It could allow a single retailer to charge full price in a large market like the U.K., and then sell below cost or for free in multiple smaller markets as a strategy to kill regional ebook retailing upstarts before they take root," Coker said.

FROWNING ON ONLINE TRADE CURBS

Antitrust regulators tend to frown on restrictions on online trade and the case is a good example, said Mark Tricker, a partner at Brussels-based law firm Norton Rose.

"This case shows the online world continues to be a major focus for the Commission," he said.

"These markets change very quickly and if you don't stamp down on potential infringements of competition rules, you can have significant consequences."

(Additional reporting by Alistair Barr in San Francisco; Editing by Rex Merrifield, David Goodman and David Gregorio)

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