Why Al Jazeera deal doesn't seem right






STORY HIGHLIGHTS


  • Al Gore sold Current to al Jazeera and could net an estimated $70 million

  • Howard Kurtz: Gore's Current network failed to gain an identity or viewers

  • He says it's odd that the former vice president is selling to an oil-rich potentate

  • Kurtz: Al Jazeera may have a tough time getting traction with U.S. viewers




Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.


(CNN) -- So Al Gore starts a liberal cable network, which turns into a complete and utter flop, then sells it to a Middle East potentate in a deal that will bring him an estimated $70 million.


Is America a great country or what?


There is something highly unusual -- OK, just plain weird -- about a former vice president of the United States doing this deal with the emir of Qatar, Sheikh Hamad bin Khalifa al-Thani.



Howard Kurtz

Howard Kurtz



Al Jazeera, owned by said emir's government, is trying to buy its way into the American television market by purchasing Current TV for a half billion dollars. The only thing stranger would be if Gore had sold Current to Glenn Beck -- oh wait, Beck did try to buy it and was told no way within 15 minutes.


So the sale was in part about ideology, which opens the door to examining why Gore believes Al Jazeera gives "voice to those who are not typically heard" and speaks "truth to power."


Bill O'Reilly, on Fox News, calls the network "anti-American." Fox pundit Dick Morris says Gore has sold to a fount of "anti-Israel propaganda." Such labels are rooted in the network's role during the height of the war on terror, when it aired smuggled videos of Osama bin Laden and was denounced by Bush administration officials.


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But Al Jazeera English, the spinoff channel launched in 2006, doesn't have the same reputation. In fact, no less a figure than Secretary of State Hillary Clinton has praised it as "real news," and the channel has won journalism awards for its reporting on the Arab Spring and other global events.


To be sure, the main Al Jazeera network gives a platform to such figures as Yusuf al-Qaradawi. He's the Muslim cleric in Egypt who, The Washington Post gas reported, frequently appears on air to castigate Jews and America and has praised suicide bombings. But when I went to the home page of Al Jazeera English the other day, there was video of David Frost, the acclaimed British journalist who now works for the main network, interviewing Israeli President Shimon Peres.




That's not to say Al Jazeera America, the working name for the new channel, won't have its own biases. Al Jazeera English is sometimes determined to paint the U.S. in a negative light.


During a report on President Barack Obama signing a renewal of the Foreign Intelligence Surveillance Act, which entails a legitimate controversy over civil liberties, the reporter said flatly that the law "violate(s) U.S. constitutional rights in the name of national security."


Watch: Can Al Jazeera make it in the American market?


Dave Marash, the ABC News veteran who once worked for Al Jazeera English, told me the network has a "post-colonial" view of America and its stories can be infused with that attitude.


And there are real questions about how independent these channels are from the Qatar government that helps bankroll them. The director-general of Al Jazeera, Sheikh Ahmed bin Jassim al-Thani, is a member of the country's royal family and has no background in journalism.


Such details add to the odd spectacle of the ex-veep, who would have been running Mideast policy had he won a few more votes in Florida, selling -- and some say selling out -- to the emir. Not to mention that the crusader against climate change is taking petrodollars from an empire built on oil, the bete noire of environmentalists.


Watch: Hey Fox, Hillary Clinton was sick after all


But what is Al Jazeera buying? The network is going to have a tough time cracking the American market.


Its earlier reputation makes the company highly controversial, and other cable carriers might follow the lead of Time Warner Cable (which is no longer owned by CNN's parent company, Time Warner) in refusing to carry it. These carriers agreed to air Current TV, after all, and contracts generally require them to approve a major change in programming.


Global politics aside, it may just be bad business. There's a reason Al Jazeera English, which will supply 40% of the content to the new channel, has barely gotten a foothold in the United States. Most Americans aren't lusting for a steady diet of international news.


Watch: Did Nancy Pelosi go too far in photoshopping picture of congresswomen?


There's no denying that Gore, a onetime newspaper reporter who had testy relations with the press during his 2000 campaign, presided over a lousy cable channel. No one quite knew what Current was during the years when it aired mostly low-rent entertainment fare and was famous mainly for North Korea taking two of its correspondents, including Lisa Ling's sister Laura, into custody.


Then Gore tried to relaunch it as a talking head channel to the left of MSNBC, hiring Keith Olbermann -- a relationship that ended with his firing and mutual lawsuits -- along with the likes of Eliot Spitzer and Jennifer Granholm, former Michigan governor. Gore himself offered commentary during major political events.


It was the utter failure of that incarnation of Current that prompted Gore and co-founder Joel Hyatt to put the thing up for sale.


Some detractors have slammed Gore for hypocrisy because, while he has advocated higher taxes on the rich, he tried to get the Al Jazeera deal done by December 31 to avoid the Obama tax hike. (The sale didn't close until January 2.) I don't see a problem trying to legally take advantage of changes in the tax code, no matter what your political stance.


Nor do I want to prejudge Al Jazeera America. The marketplace will decide its fate.


But there is something unsettling about Gore making off with such a big payday from a government-subsidized channel after making such bad television. Nice work if you can get it.


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The opinions expressed in this commentary are solely those of Howard Kurtz.






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Ryan Lochte gets E! reality show






NEW YORK (TheWrap.com) – You saw this one coming, right? Swimmer Ryan Lochte is getting a reality show on E!


The Olympic gold medal winner – known for his catchphrase “Jeah” (pronounced zh-yah) – will star in “What Would Ryan Lochte Do?” The series will follow him as he meets women, copes with the fallout of his mom saying he only has time for one-night stands, explores his interest in fashion, and even occasionally swims.






In scenes shown at the Television Critics Association winter press tour Monday, Lochte was seen going out partying the night before he was due to swim, flirted, and made up words as he tried to explain himself. It was pretty funny.


TV News Headlines – Yahoo! News





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Kenya seen cutting rates on Thursday to boost growth






NAIROBI (Reuters) – Kenya’s central bank is expected to cut its benchmark lending rate by one percentage point to 10 percent this week to stimulate the economy, a Reuters poll showed on Tuesday.


The central bank‘s rate-setting committee, which embarked on a monetary easing cycle last July, is scheduled to meet on January 10. Inflation is on-target inflation and the currency trading at a rate that suggests they have some wiggle room.






Ten out of 11 analysts polled by Reuters predicted a cut of 100-200 basis points, with the median forecast coming in at a cut of 100 basis points. One respondent expected policymakers to hold rates at 11 percent.


“The policy thrust will be towards easing the monetary policy stance to boost economic activity,” said Phumelele Mbiyo, regional head of research at CFC Stanbic bank.


He said the economy had not yet recovered from high lending rates in late 2011 and the first half of 2012. Inflation was subdued and it was likely to remain so for some time, he added.


Year-on-year inflation fell for the 13th straight month in December to 3.2 percent, far from commercial banks’ lending rates, which stand at about 20 percent.


“Real interest rates are too high for this point in the economic cycle,” Mbiyo said.


The economy expanded by 4.7 percent in the third quarter of 2012, faster than 4 percent in the same period in the previous year, but analysts said there was need for further stimulation.


“The economy is not firing with all cylinders although we saw a mild pick up in the third quarter but on a sequential quarter on quarter basis it remains subdued,” said Aly Khan Satchu, an independent trader and analyst.


“The central bank will, I am sure, err on the side of watering the green shoots.”


Even though the shilling fell to a seven months low against the dollar in the first trading session of this year, market participants said the currency has been stable, offering policymakers crucial breathing space.


The Monetary Policy Committee in the east African nation, which is in the throes of a divisive campaign season ahead of a March 4 presidential election, has lent to pro-economic growth policy in the past.


In 2011, the committee was criticised for failing to stem a slide in the shilling and a jump in the rate of inflation, by keeping interest rates artificially low to boost growth.


But its ability to guide economic growth to a faster rate through rapid reduction of lending rates has been curbed by a persistently high current account deficit that stands at above 10 percent of the gross domestic product.


Investors could also adopt a wait-and-see attitude this quarter due to the election. Historically, the economy has suffered from election-related stress.


It suffered from severe shocks after the results of the last election in 2007 were disputed, leading to tribal violence that left 1,250 people dead and displace many more.


“Investor uncertainty is likely to increase ahead of the March general election prompting huge capital outflows, which would continue to weaken the currency and increase inflationary pressures,” said Gaimin Nonyane, a senior macroeconomic specialist at Ecobank, which predicted a hold decision.


“This is in addition to a potential rise in election-related expenditure- this will inject liquidity into the economy and thus increase inflationary pressures.”


Economy News Headlines – Yahoo! News





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Medistem Inc. Appoints Biotechnology Veteran John Chiplin, Ph.D. to Board of Directors






SAN DIEGO, CA–(Marketwire – Jan 8, 2013) – Medistem Inc. ( PINKSHEETS : MEDS ), announced today that John Chiplin, Ph.D., has been elected to its Board of Directors. Dr. Chiplin has over 25 years of experience as a biopharmaceutical executive and is currently CEO of Polynoma, a Phase III cancer vaccine company. Dr. Chiplin is also on the Board of Directors of Benitec, an RNA interference company with which Medistem has authored two peer-reviewed scientific publications. Dr. Chiplin’s appointment expands the number of Medistem board members to six.


“To my knowledge Medistem is the only company in the history of cell therapy to take a cell from discovery to FDA clearance and clinical trials in the span of 4 years,” said Dr. Chiplin. “I believe Medistem has an outstanding management team and have watched with great interest the company’s evolution. I believe the company is well positioned to transform the stem cell industry and I look forward to helping shape the company’s future as a member of the board.”






Dr. Chiplin has broad-based experience in the life science and technology industries in both leadership and investment roles. Prior to Polynoma, Dr. Chiplin was founding CEO of Arana Therapeutics, a new generation antibody developer and a board member of Domantis, Inc., prior to the acquisition of these companies by Cephalon ($ 329 million) and GSK ($ 458 million), respectively. Prior to founding Arana, Dr. Chiplin was Managing Director of U.K. based ITI Life Sciences investment Fund. Dr. Chiplin holds Pharmacy and Doctoral degrees from the University of Nottingham, UK.


“We are delighted to have John join our board. The combination of scientific and business acumen, as well as practical knowledge of biotherapeutic development that John possesses is an extremely rare combination,” said Alan Lewis, Ph.D., CEO of Medistem. “John has been involved in several successful exits, we are looking forward to synergizing with his talents at optimizing the value of our universal donor stem cell product.”


About Medistem Inc.


Medistem Inc., is focused on the development of the Endometrial Regenerative Cell (ERC), a universal donor adult stem cell product. ERCs possess specialized abilities to stimulate new blood vessel growth and can differentiate into lung, liver, heart, brain, bone, cartilage, fat and pancreatic tissue. These unique properties have applications for treatment of critical limb ischemia (CLI), congestive heart failure (CHF), neurodegenerative diseases, liver failure, kidney failure, and diabetes. ERCs have been cleared by the FDA to begin studies in the United States.


Certain statements herein may be forward-looking and involve risks and uncertainties. Such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medistem Inc. These can be identified by the use of forward‐looking words, such as “believes,” “expects,” “may,” “intends,” “anticipates,” “plans,” “estimates,” or any other analogous or similar expressions intended to identify forward‐looking statements. These forward‐looking statements and estimates as to future performance, estimates, and other statements contained herein regarding matters that are not historical facts, are only predictions and actual events or results may differ materially. We cannot assure or guarantee that any future results described in this presentation will be achieved, and actual results could differ materially as a result of a variety of factors, including the risks associated with the effect of changing economic conditions and other risk factors detailed in the Company’s Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.


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Stock index futures signal lower Wall Street open

LONDON (Reuters) - U.S. stock index futures pointed to a slightly lower Wall Street open on Tuesday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 down 0.1 to 0.3 percent.


Alcoa and Monsanto are two of the first large companies to report quarterly results as the earnings season begins. Wall Street expects both the companies to show improved profit from a year ago.


ICSC/Goldman Sachs release chain store sales for the week ended January 5 at 1245 GMT. In the previous week, sales rose 0.6 percent.


Samsung Electronics said it likely earned a quarterly profit of $8.3 billion as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products.


Redbook releases its Retail Sales Index of department and chain store sales for January at 1355 GMT. In the previous month, sales rose 0.1 percent.


Sears Holdings Corp said late on Monday Chief Executive Louis D'Ambrosio will step down for family health reasons after the U.S. retailer reported a 1.8 percent decline in quarter-to-date sales at stores open at least a year.


National Federation of Independent Business releases small business optimism index for December at 1230 GMT. In the previous month, the index read 87.5.


The FTSEurofirst 300 <.fteu3> index of top European shares turned flat in morning session on Tuesday after opening lower, with gains in telecom stocks offsetting declines in financial and mining shares.


U.S. stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.


The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.


(Reporting by Atul Prakash; Editing by Alistair Lyon)



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Here come the big boys


Here come the big boys.


The NFL's wild-card weekend is over, with nary an upset. Moving on are division winners Green Bay, Houston and Baltimore, along with NFC West runner-up Seattle and the only rookie quarterback still standing: Russell Wilson.


Ahead are some daunting challenges as the Ravens visit Denver, the Texans go to New England, the Packers head to San Francisco and the Seahawks journey to Atlanta.


Only the Seahawks-Falcons isn't a rematch.


Seattle isn't intimidated one bit about facing the NFC's top seed.


"Despite the fact that we have a 'nobody' team," Seattle cornerback Richard Sherman said after Sunday's convincing 24-14 comeback win at Washington, "a team not full of first-rounders and things like that, we have a lot of guys that play at a high level."


Of course, so do the Falcons (13-3), Broncos (13-3), Patriots (12-4) and 49ers (11-4-1).


"They have a great coach and a great quarterback and they have great role players on their team," Texans running back Arian Foster said of the Patriots, who routed Houston 42-14 last month. "I have a lot of respect for them, but we can play ball, too."


The Texans beat Cincinnati 19-13 on Saturday, then Green Bay took out Minnesota 24-10. In Sunday's other game, Baltimore eliminated Indianapolis 24-9.


The playoffs continue next Saturday with Baltimore (11-6) at Denver, followed by Green Bay (12-5) at San Francisco. The Broncos beat the Ravens 34-17 three weeks ago, while the 49ers knocked off the Packers 30-22 in the season opener.


On Sunday, it's Seattle (12-5) at Atlanta, followed by Houston (13-4) visiting New England.


___


Ravens at Broncos


Not only is Baltimore thrilled to keep playing and keep star linebacker Ray Lewis' career going, but the Ravens got the opponent they sought for the divisional round.


"I wanted Denver," said Anquan Boldin, who set a franchise record with 145 yards receiving, including the clinching touchdown against Indianapolis (11-6). "Because they beat us. We'll make it different."


Lewis made 13 tackles in his first game back in nearly three months. He ended his last home game in Baltimore before his impending retirement by lining up at fullback for the final kneel-down. Then Lewis went into a short version of his trademark dance before being mobbed by teammates. He followed with a victory lap, his right triceps, covered by a brace, held high in salute to the fans.


Joe Flacco became the first quarterback to win a postseason game in each of his first five seasons and John Harbaugh is the first coach to do so.


"I love our team," Lewis said, "and I'm really looking forward to going out there and playing them next week."


The loss ended the Colts' turnaround season in which they went from 2-14 to the playoffs in coach Chuck Pagano's first year in Indianapolis. Pagano missed 12 weeks while undergoing treatment for leukemia and returned last week.


Andrew Luck completed 28 of 54 passes, the most attempts by a rookie in a playoff game, for 288 yards.


Packers at 49ers


It's been a long time since these teams met on kickoff weekend, and much has changed.


Green Bay has become a bit more balanced on offense and somewhat stingier on defense than it was back in September. San Francisco has second-year quarterback Colin Kaepernick instead of Alex Smith, and receiver Michael Crabtree finally has developed into a threat.


The Packers held league rushing king Adrian Peterson to 99 yards in beating the Vikings (10-7), 100 yards less than he got on them the previous week.


"I don't think we had our identity at that point," QB Aaron Rodgers said of the Packers team San Francisco beat. "We were trying a lot of different things."


Seahawks at Falcons


Atlanta has flopped in its last three playoff games, including losing at home to Green Bay two years ago in a similar scenario.


Seattle won't bring as high-powered an offense as the Packers did to Atlanta, but it's versatile enough with the creative Wilson, bulldozing halfback Marshawn Lynch and a deep group of receivers.


The most significant challenge for the Falcons, though, will be a defense that completely shut down the Redskins and a hobbling Robert Griffin III for the final three quarters of their wild-card game.


Washington (10-7) had 129 yards in the first quarter and 74 for the rest of the game.


"Seventy yards in 3½ quarters is ridiculously good defense," coach Pete Carroll said after his Seahawks won their sixth straight and snapped Washington's seven-game winning streak.


Texans at Patriots


Both teams say the Monday night romp by New England on Dec. 10 is not an indicator of what's ahead. For their sake, the Texans better hope that is true.


"We didn't play our best football up there and we hurt ourselves with penalties and mistakes," said Foster, who rushed for 140 yards and a TD against the Bengals (10-7). "Anytime you give (the Patriots) opportunities, they'll take advantage of them. But we'll play our best up there."


They have no choice, and Patriots coach Bill Belichick fully expects a tighter game.


"When you play a team twice during the season, the games are totally different. They never go the same way," Belichick said. "We'll be able to certainly look at some of the matchups individually, guys that faced each (other) in the game. As far as plays and calls and things like that matching up, I'm sure they'll have some new wrinkles. I'm sure we'll have some, too. It will be totally different."


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Depardieu exit causes French storm






STORY HIGHLIGHTS


  • Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu

  • For Depardieu, a public war of words erupted, with many in France disgusted by his move

  • Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier

  • Majority of French people disapprove of his action but can't help loving him, she adds




Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.


Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.


Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.


Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.



Agnes Poirier

Agnes Poirier



For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.


The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.


In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.



In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles



For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.


Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.


If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.


The opinions expressed in this commentary are solely those of Agnes Poirier.






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‘Zero Dark Thirty,’ ‘Silver Linings’ get box-office boost






LOS ANGELES (Reuters) – “Zero Dark Thirty” made the most of its expansion this weekend, running up a very strong $ 45,834 per-screen average from 60 locations in 11 U.S. cities.


Kathryn Bigelow‘s tale of the hunt for Osama bin Laden brought in $ 2.75 million, after expanding from five locations in two markets this weekend in the wake of several nominations from the Producers Guild (PGA) and Writers Guild (WGA).






Its overall total after three weeks is $ 4.4 million. Sony plans to go wide next week, after Thursday’s Oscar nominations.


The Weinstein Company‘s “Silver Linings Playbook,” which also earned nominations from the PGA and WGA, appeared to have received a boost, too.


It dropped just 11 percent – the best of any film in wide release – and brought in $ 3.6 million from 745 screens, a $ 4,847 per theater. It has now brought in $ 34.6 million over its eight weeks.


“We think we’re positioned very well for the long haul,” Erik Lomis, Weinstein’s head of distribution said. The studio plans to go wide with the dark comedy from David O. Russell on January 18, the Martin Luther King holiday weekend.


Sony Classics’ “Amour” averaged $ 21,199 after taking in $ 63,596 from three screens. The overall gross for Michael Haneke’s dark and unsparing look at old age and death, a front-runner in Oscar’s Best Foreign Language race, is now $ 315,011 after 17 days.


Movies News Headlines – Yahoo! News





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France Can’t Afford Free Massages and Mud Baths






Anita Manfredi got nine massages and 18 mud baths at a luxury spa in November. The French government paid two-thirds of the $ 1,022 bill. “The treatment has done me a lot of good,” says Manfredi, a French retiree who suffers from arthritis and enjoys a three-week retreat at the southern spa town of Dax every year. “I no longer have flare-ups.”


For decades, France has held up its health-care system as a model to the world. Homeopathic remedies, support tights, and taxi rides to the hospital are among the many costs reimbursed by the health-care branch of France’s social security system, known as l’assurance maladie. Average life expectancy is 81.3 years, longer than in the U.S. Adults are less likely to live with diabetes or die from heart disease, and the rate of infant deaths in 2010, the latest year on record, was almost half that of the U.S., according to the Organisation for Economic Co-operation and Development.






Yet France’s looming recession and a steady increase in chronic diseases including diabetes threaten to change that, says Willy Hodin, who heads Groupe PHR, an umbrella organization for 2,200 French pharmacies. The health system exceeds its budget by billions of euros each year, and in the face of rising costs, taxpayer-funded benefits such as spa treatments, which the French have long justified as preventive care, now look more like expendable luxuries. “Reform is needed fast,” Hodin says. “The most optimistic believe this system can survive another five to six years. The less optimistic don’t think it will last more than three.”


Even as Spain and Greece gut their own costly health-care systems in an effort to control government spending, French President François Hollande is struggling to preserve his country’s enviably generous benefits, which most citizens consider a right. Aware that any attempt to dramatically curtail perks would likely lead to massive protests, Hollande has taken a more modest approach to cost-cutting. France’s health system now requires doctors to reduce the number of drugs they prescribe and to substitute generics for brand-name pharmaceuticals. The government says cuts in the cost of prescription medicines will save €530 million ($ 702.4 million) in 2013. Patients in other European nations have long used generics, but many French view no-name drugs with suspicion and demand the real thing. In Germany, as much as 96 percent of prescriptions are filled with generics. In June 2011 the substitution rate in France was 71 percent, according to the government. The goal is 85 percent.


Under new rules, patients can no longer refuse a generic offered by pharmacists unless they’re willing to pay upfront for the pricier alternative. And pharmacists who sell too many branded drugs face trouble. Jean-Christophe Girardeaux and his mother, Jacqueline, who co-own a pharmacy in Airvault, a town of about 3,000 in western France, lost their right to offer customers immediate reimbursement for one month in September after they failed to sell enough generics. The younger Girardeaux calls the government’s push for generics “crazy,” a view many French share. In a December opinion poll published by Groupe PHR, 46 percent of those surveyed said the increased pressure to use generic drugs was a violation of their freedom.


The government is also putting the squeeze on free taxi rides for patients in rural areas, who often live far from hospitals. Jonathan Guersoni, a cabbie in the Burgundy region, says 95 percent of his business comes from shuttling patients to and from the doctor in his Mercedes-Benz (DAI). He carries one customer three times a week for dialysis at a hospital 31 miles away, billing the government at a discounted rate, about 7 percent less than what he charges paying customers. Guersoni, who goes by the nickname Joe Le Taxi, fears health authorities will soon demand a discount of more than twice as much. “I am really worried,” he says. “I may have to get a cheaper car.”


The tinkering appears to have succeeded in bringing down costs, though it’s unclear by how much. The government projects the health-care system’s 2013 shortfall will be about €5.1 billion, down from €11.6 billion in 2010. Yet that forecast may be optimistic, since it’s based on the assumption that the economy will grow 0.8 percent—double the European Commission’s estimate. France’s system “is simply unaffordable, unsustainable, and the manner in which it’s financed is a huge burden on the economy,” says Nicholas Spiro, managing director of Spiro Sovereign Strategy in London. “The French are not being realistic.”


The bottom line: The French government says the health system will fall €5.1 billion short in 2013, meaning it may be forced to cut cherished benefits.


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StrataFusion Announces Mark Egan, Former VMware CIO, to Lead IT Transformation Practice






LOS GATOS, CA–(Marketwire – January 07, 2013) -  StrataFusion, one of the premier business consulting and technology services firms, announced today that Mark Egan has joined as a Partner. In this role, Mark will report to CEO Ken Crafford and lead the IT Transformation and Information Security consulting practices. Before joining StrataFusion, Mark most recently served as CIO of VMware where he supported the company transformation from a server virtualization vendor with $ 2 billion in revenue to a $ 5 billion market leader of cloud solutions. Prior to VMware during his 6 years as CIO at Symantec, Mark’s leadership in IT was instrumental in supporting the company’s transformation from a $ 600 million consumer software publisher to a $ 5 billion market leader of enterprise security solutions.


“Mark brings a wealth of IT operational and CIO experience to StrataFusion,” said Ken Crafford, StrataFusion’s Chief Executive Officer. ”The technology industry is going through a major transformation today and we are pleased to have Mark lead our new consulting practice that will assist our clients in taking advantage of cloud, mobile, social, and big data technology to accelerate their business. StrataFusion has a long track record of delivering value-added services to our clients and we are excited about these new service offerings.”






“StrataFusion’s Partners have a long-standing reputation for high quality advisory services and are uniquely positioned to provide specialized transformational client services,” said Egan. “I look forward to executing a focused strategy which will lead to substantial growth in these new practice areas.” For more information about StrataFusion’s IT Transformation and Information Security consulting practices, please visit http://www.stratafusion.com/our-practice-areas/.


About StrataFusion
StrataFusion is a boutique management consulting and technology services firm providing high-end technology consulting and “CIO for Hire” services. StrataFusion has a unique model of CIO experts and Executive operational advisors that help top management solve their most challenging business problems. StrataFusion’s Partners, Principals, and management consultants have combined empirical data, industry best practices, and analytical models to create a competitive advantage for our Fortune 500 and mid-market clients. Our proprietary methodologies and tools have been refined to help organizations reduce project complexities and accelerate investment returns. 


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