In Islamist Bastion, Support Ebbs for Egypt’s Brotherhood


Tara Todras-Whitehill for The New York Times


A school with old posters of Mohamed Morsi, now the president, in Al Talbeya, a neighborhood in Giza, where disaffection with the government is growing. More Photos »







AL TALBEYA, Egypt — Mohamed Salamah used to vote with the Muslim Brotherhood. But in Saturday’s referendum on the Islamist-backed constitution, Mr. Salamah says he is voting against it, mainly because he no longer trusts the movement.




“They aren’t even doing anything very Islamic,” said Mr. Salamah, a 24-year-old waiter in a cafe in Al Talbeya, a working-class neighborhood in Giza across the Nile from Cairo that was an Islamist stronghold in previous votes. “They are just doing things that aren’t very competent.”


Throughout the neighborhood, both loyal supporters and critics of the Brotherhood described a deep erosion in the group’s street-level support. That was evident, they said, even before the low turnout and narrow margin in last weekend’s first round of voting on what residents here call “the Brotherhood constitution.”


The results so far appear to have surprised leaders of the Brotherhood and their opposition. And even if the draft constitution is approved, as expected, on Saturday in the second half of the vote, the new questions about the charter’s popularity and the Brotherhood’s mandate could prolong Egypt’s political turbulence and, as a result, defer badly needed economic reforms as well.


Residents here and around Cairo say the damage to the Brotherhood’s popularity is unrelated to its religious ideology. It reflects a consistent trio of complaints: confusing economic policies of the Brotherhood-led government, a near-monopoly on power and civilian supporters’ use of force against opponents in a street battle two weeks ago. Even so, many say the Brotherhood remains the most potent political force, in part because of the incoherence of the opposition, which has often focused on accusing the Brotherhood of imposing religious rule.


But for now economists say the battle for power is jeopardizing progress on the bread-and-butter issues that are paramount across the ideological spectrum. “What the economy needs are decisions that are politically courageous and credible, and no government can do that now,” said Ragui Assaad, an economist at the University of Minnesota with an office in Cairo.


A critical loan of more than $4 billion from the International Monetary Fund, expected to be signed this month, has been delayed until the political situation settles. The Egyptian pound is slipping against the dollar. And the most obvious step to improve the growth and fairness of the economy requires a government with credibility and political skill. Attempts at overhauling Egypt’s vast subsidies to energy prices have in the past set off riots.


“What we have now is a government that lacks legitimacy but also economic competence,” Mr. Assaad said. “I don’t see anything better coming out of this government.”


Brotherhood leaders have acknowledged the emergence of hostility against them. Mobs attacked more than three dozen Brotherhood offices, including its headquarters, in the prelude to the first round of voting on the constitution. “I am telling everyone, do not hate the Muslim Brotherhood so much that you forget Egypt’s best interest,” said Mohamed Badie, the group’s spiritual leader. “You can be angry at us and hate us as much as you want; we cannot control affection. But I say to you, be rational. Protect Egypt. Its unity cannot survive what is happening.”


For many in Al Talbeya, the defining moment of the prelude to the referendum was the night of Dec. 5, when the Brotherhood called its supporters to defend President Mohamed Morsi against protesters outside his office. Ten died in the fight. And although the Brotherhood has claimed all those killed were its members, seemingly everyone in Al Talbeya still blamed the group for the violence.


“People don’t like the Muslim Brotherhood as much as they used to, because they saw how they tried to control everything and how they beat people up,” said Emad Mohamed Yosri, 37, a tailor who still counts himself a supporter of the group.


Omar Ateh, 30, a shopkeeper and Islamist, said he was trying to defend the Brotherhood. “We are trying to make people understand, they are not from another planet,” he said, “they just like politics more than we do.”


But Ahmed Ragab, 14, interjected, “If they are such good people, why are they beating people up in the streets?”


Mayy El Sheikh contributed reporting from Cairo.



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Red Hat shares up on acquisition and 3Q results






Red Hat Inc.‘s shares jumped Friday on the software company‘s solid third-quarter results and plans to acquire cloud-based software company ManageIQ.


THE SPARK: Red Hat said late Thursday that it would buy privately held ManageIQ for $ 104 million in cash.






The Raleigh, N.C., company also reported that it earned 29 cents per share for its fiscal third quarter on an adjusted basis, up a penny from the prior year and in line with analyst expectations. Its revenue for the period increased 18 percent to $ 343.6 million, which beats the $ 338 million that analysts polled by FactSet had forecast.


THE BIG PICTURE: ManageIQ’s software helps businesses deploy and manage private clouds. Red Hat said the deal will expand the reach of its public-private cloud setups for its customers. The acquisition is expected to have no material impact to Red Hat’s revenue for its fiscal year ending in February.


THE ANALYSIS: Stifel Nicolaus analyst Brad R. Reback said that the company has been able to maintain momentum even in a difficult environment and he thinks the latest deal offers an interesting longer-term angle for its business. He thinks the company is well positioned to generate at least 15 to 20 percent billings growth in the future. He reiterated a “Buy” rating and a $ 65 price target on its shares.


SHARE ACTION: Shares gained $ 2.25, or more than 4 percent, to $ 54.86 in afternoon trading. Shares have traded between $ 39.19 and $ 62.75 in the past 52 weeks.


Linux/Open Source News Headlines – Yahoo! News





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See If You Can Spot the One Color That Popped on the Carpet This Week







Style News Now





12/21/2012 at 12:00 PM ET











Lauren Bush Lauren Beauty ProductsGetty; Splash News Online; WireImage


Even though we didn’t see as many stars on the red carpet this week as last — it’s quiet in Hollywood this holiday season! — we still saw some strong trends emerge at various events. What were they? Let’s get to it!



Up: Pops of red. You can thank the holidays for this festive mini-trend, which we spotted on Hailee Steinfeld’s purse, Bella Heathcote’s dress and Rose Byrne’s jacket. Adding just a hint of the bold hue to your outfit is an easy way to look all holiday-y without going overboard.




Up: Head-to-toe black. What, are stars sick of sequined dresses already? This week we saw nearly one dozen leading ladies wear all black: Britney Spears, Demi Lovato, LeAnn Rimes, Alexa Chung, Jessica Chastain, Miley Cyrus, Krysten Ritter and Kerry Washington … to name a few. As New Yorkers, we’re always happy to see all-black ensembles en force, and it is a look that’s usually pretty failsafe — and slimming.



Down: Stick-straight hair. Rita Ora was the only woman we saw with pin-straight locks this week; everyone else went for bouncy curls and elegant updos (and cropped cuts, if you count Miley Cyrus!). With Christmas and New Year’s Even upon us, we predict we’ll be seeing a lot more exciting hairdos and less of the minimalist straight looks.


Tell us: Which color are you more likely to wear at the holidays: red or black?






Want more Trend Report? Click to hear our thoughts on mini dresses, cut-outs and collars.


FIND ALL THE LATEST RED CARPET NEWS AND PHOTOS HERE!




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AP IMPACT: Big Pharma cashes in on HGH abuse


A federal crackdown on illicit foreign supplies of human growth hormone has failed to stop rampant misuse, and instead has driven record sales of the drug by some of the world's biggest pharmaceutical companies, an Associated Press investigation shows.


The crackdown, which began in 2006, reduced the illegal flow of unregulated supplies from China, India and Mexico.


But since then, Big Pharma has been satisfying the steady desires of U.S. users and abusers, including many who take the drug in the false hope of delaying the effects of aging.


From 2005 to 2011, inflation-adjusted sales of HGH were up 69 percent, according to an AP analysis of pharmaceutical company data collected by the research firm IMS Health. Sales of the average prescription drug rose just 12 percent in that same period.


___


EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.


___


Unlike other prescription drugs, HGH may be prescribed only for specific uses. U.S. sales are limited by law to treat a rare growth defect in children and a handful of uncommon conditions like short bowel syndrome or Prader-Willi syndrome, a congenital disease that causes reduced muscle tone and a lack of hormones in sex glands.


The AP analysis, supplemented by interviews with experts, shows too many sales and too many prescriptions for the number of people known to be suffering from those ailments. At least half of last year's sales likely went to patients not legally allowed to get the drug. And U.S. pharmacies processed nearly double the expected number of prescriptions.


Peddled as an elixir of life capable of turning middle-aged bodies into lean machines, HGH — a synthesized form of the growth hormone made naturally by the human pituitary gland — winds up in the eager hands of affluent, aging users who hope to slow or even reverse the aging process.


Experts say these folks don't need the drug, and may be harmed by it. The supposed fountain-of-youth medicine can cause enlargement of breast tissue, carpal tunnel syndrome and swelling of hands and feet. Ironically, it also can contribute to aging ailments like heart disease and Type 2 diabetes.


Others in the medical establishment also are taking a fat piece of the profits — doctors who fudge prescriptions, as well as pharmacists and distributors who are content to look the other way. HGH also is sold directly without prescriptions, as new-age snake oil, to patients at anti-aging clinics that operate more like automated drug mills.


Years of raids, sports scandals and media attention haven't stopped major drugmakers from selling a whopping $1.4 billion worth of HGH in the U.S. last year. That's more than industry-wide annual gross sales for penicillin or prescription allergy medicine. Anti-aging HGH regimens vary greatly, with a yearly cost typically ranging from $6,000 to $12,000 for three to six self-injections per week.


Across the U.S., the medication is often dispensed through prescriptions based on improper diagnoses, carefully crafted to exploit wiggle room in the law restricting use of HGH, the AP found.


HGH is often promoted on the Internet with the same kind of before-and-after photos found in miracle diet ads, along with wildly hyped claims of rapid muscle growth, loss of fat, greater vigor, and other exaggerated benefits to adults far beyond their physical prime. Sales also are driven by the personal endorsement of celebrities such as actress Suzanne Somers.


Pharmacies that once risked prosecution for using unauthorized, foreign HGH — improperly labeled as raw pharmaceutical ingredients and smuggled across the border — now simply dispense name brands, often for the same banned uses. And usually with impunity.


Eight companies have been granted permission to market HGH by the U.S. Food and Drug Administration, which reviews the benefits and risks of new drug products. By contrast, three companies are approved for the diabetes drug insulin.


The No. 1 maker, Roche subsidiary Genentech, had nearly $400 million in HGH sales in the U.S. last year, up an inflation-adjusted two-thirds from 2005. Pfizer and Eli Lilly were second and third with $300 million and $220 million in sales, respectively, according to IMS Health. Pfizer now gets more revenue from its HGH brand, Genotropin, than from Zoloft, its well-known depression medicine that lost patent protection.


On their face, the numbers make no sense to the recognized hormone doctors known as endocrinologists who provide legitimate HGH treatment to a small number of patients.


Endocrinologists estimate there are fewer than 45,000 U.S. patients who might legitimately take HGH. They would be expected to use roughly 180,000 prescriptions or refills each year, given that typical patients get three months' worth of HGH at a time, according to doctors and distributors.


Yet U.S. pharmacies last year supplied almost twice that much HGH — 340,000 orders — according to AP's analysis of IMS Health data.


While doctors say more than 90 percent of legitimate patients are children with stunted growth, 40 percent of 442 U.S. side-effect cases tied to HGH over the last year involved people age 18 or older, according to an AP analysis of FDA data. The average adult's age in those cases was 53, far beyond the prime age for sports. The oldest patients were in their 80s.


Some of these medical records even give explicit hints of use to combat aging, justifying treatment with reasons like fatigue, bone thinning and "off-label," which means treatment of an unapproved condition


Even Medicare, the government health program for older Americans, allowed 22,169 HGH prescriptions in 2010, a five-year increase of 78 percent, according to data released by the Centers for Medicare and Medicaid Services in response to an AP public records request.


"There's no question: a lot gets out," said hormone specialist Dr. Mark Molitch of Northwestern University, who helped write medical standards meant to limit HGH treatment to legitimate patients.


And those figures don't include HGH sold directly by doctors without prescriptions at scores of anti-aging medical practices and clinics around the country. Those numbers could only be tallied by drug makers, who have declined to say how many patients they supply and for what conditions.


First marketed in 1985 for children with stunted growth, HGH was soon misappropriated by adults intent on exploiting its modest muscle- and bone-building qualities. Congress limited HGH distribution to the handful of rare conditions in an extraordinary 1990 law, overriding the generally unrestricted right of doctors to prescribe medicines as they see fit.


Despite the law, illicit HGH spread around the sports world in the 1990s, making deep inroads into bodybuilding, college athletics, and professional leagues from baseball to cycling. The even larger banned market among older adults has flourished more recently.


FDA regulations ban the sale of HGH as an anti-aging drug. In fact, since 1990, prescribing it for things like weight loss and strength conditioning has been punishable by 5 to 10 years in prison.


Steve Kleppe, of Scottsdale, Ariz., a restaurant entrepreneur who has taken HGH for almost 15 years to keep feeling young, said he noticed a price jump of about 25 percent after the block on imports. He now buys HGH directly from a doctor at an annual cost of about $8,000 for himself and the same amount for his wife.


Many older patients go for HGH treatment to scores of anti-aging practices and clinics heavily concentrated in retirement states like Florida, Nevada, Arizona and California.


These sites are affiliated with hundreds of doctors who are rarely endocrinologists. Instead, many tout certification by the American Board of Anti-Aging and Regenerative Medicine, though the medical establishment does not recognize the group's bona fides.


The clinics offer personalized programs of "age management" to business executives, affluent retirees, and other patients of means, sometimes coupled with the amenities of a vacation resort. The operations insist there are few, if any, side effects from HGH. Mainstream medical authorities say otherwise.


A 2007 review of 31 medical studies showed swelling in half of HGH patients, with joint pain or diabetes in more than a fifth. A French study of about 7,000 people who took HGH as children found a 30 percent higher risk of death from causes like bone tumors and stroke, stirring a health advisory from U.S. authorities.


For proof that the drug works, marketers turn to images like the memorable one of pot-bellied septuagenarian Dr. Jeffry Life, supposedly transformed into a ripped hulk of himself by his own program available at the upscale Las Vegas-based Cenegenics Elite Health. (He declined to be interviewed.)


These promoters of HGH say there is a connection between the drop-off in growth hormone levels through adulthood and the physical decline that begins in late middle age. Replace the hormone, they say, and the aging process slows.


"It's an easy ruse. People equate hormones with youth," said Dr. Tom Perls, a leading industry critic who does aging research at Boston University. "It's a marketing dream come true."


___


Associated Press Writer David B. Caruso reported from New York and AP National Writer Jeff Donn reported from Plymouth, Mass. AP Writer Troy Thibodeaux provided data analysis assistance from New Orleans.


___


AP's interactive on the HGH investigation: http://hosted.ap.org/interactives/2012/hgh


___


The AP National Investigative Team can be reached at investigate(at)ap.org


EDITOR'S NOTE _ Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.


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Asian shares slide as U.S. budget impasse creates anxiety

TOKYO (Reuters) - Asian shares slid on Friday after a Republican proposal to deal with a U.S. fiscal crunch failed to get enough support, deepening uncertainty over the U.S. can avert the "fiscal cliff" of automatic spending cuts and tax increases set to start January 1.


"Markets disliked signs of further delay in talks, with the risk that a deal may not be reached by the end of the year deadline," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo. "It clearly hit risk sentiment."


The U.S. House of Representatives will adjourn until after Christmas, Republican Representative Peter Roskam said on Thursday, after House Speaker John Boehner's proposed tax bill designed to avert the fiscal cliff failed to pass.


U.S. stock index futures fell sharply. S&P 500 stock futures slipped 1.7 percent, while Dow Jones stock futures and Nasdaq futures both lost 1.5 percent.


European shares will likely drop also, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> will open down as much as 0.6 percent. <.l><.eu/>


The worrying U.S. political news sparked selling in Asian shares, with MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> wiping out earlier gains to tumble 0.7 percent. The index was on track to end the week down 0.6 percent, the first weekly loss in five weeks.


Markets broadly had been supported by optimism that U.S. lawmakers would avoid the fiscal cliff, which threatens to derail the U.S. economy and drag down global growth with it.


Boehner's proposal was aimed at extracting concessions from the White House, which had threatened to veto it, and advance talks closer to a deal.


The Republican-led U.S. House of Representatives, which abruptly recessed on late Thursday, may return as soon as December 27 with a yet-to-be-decided new plan, said a senior party aide.


"This is a major setback for a Fiscal Deal compromise between the two parties. I would say that chances of a deal are down to maybe 40 percent from 65 percent -- despite the dysfunction in Washington D.C," said Douglas A. Kass, founder of hedge fund Seabreeze Partners Management Inc.


Risk assets were sold off, from shares, oil to currencies such as the Australian dollar and the euro. The yen firmed slightly, though it was pinned near multi-month lows versus the dollar and the euro on expectations for more aggressive Bank of Japan easing next year to drive the economy out of deflation.


"The delay in resolving the U.S. fiscal cliff problem is raising concern as the market expected some sort of positive direction out of the talks by the end of the year," said Fujio Ando, a senior managing director at Chibagin Asset Management.


Safe-haven government bond prices rose, with U.S. 10-year Treasury yields moving away from an 8-week high hit this week, falling about 6 basis points to 1.74 percent. Benchmark 10-year Japanese government bond yields also ticked down half a basis point to 0.765 percent.


Inflows into U.S. Treasuries underpinned the U.S. dollar, which inched up 0.1 percent against a basket of major currencies <.dxy>.


Jim Barnes, senior fixed income manager at National Penn Investors Trust Co. in Wyomissing, Pennsylvania, saw Treasuries continuing to gain once U.S. markets open later, but expected a correction by the end of the day.


"Treasury yields will likely fall Friday morning and will begin to reverse course in the afternoon as investors become more optimistic a deal will be reached," Barnes said.


"So far, the market has been handling setbacks in negotiation talks very well. With still a little bit of time left on the clock, this time around will be no different."



Asset performance in 2012: http://link.reuters.com/muc46s


U.S. GDP: http://link.reuters.com/guw34t


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


Along with uncertainties surrounding the future of U.S. budget talks, a firmer dollar also weighed on dollar-based commodities.


The euro fell 0.3 percent to $1.3206, off an 8-1/2-month high of $1.33085 touched on Wednesday.


U.S. crude futures dropped more than $1 to $89.10 a barrel, but oil was still on track for its biggest weekly gain since August.


Spot gold extended losses to near a four-month low touched on Thursday, and was last down 0.1 percent to $1,644.90 an ounce. Gold remained on course for a 12th annual growth on rock-bottom interest rates, concerns over the euro zone financial stability and diversification into bullion by central banks.


YEN GAINS SLIGHTLY


Anxieties over the U.S. budget negotiations also took their toll on Japan's Nikkei average <.n225>, which had been supported by a weaker yen. The Nikkei gave up all of earlier gains to close down 1 percent and below the key 10,000 mark it reclaimed for the first time since early April on Wednesday. <.t/>


The dollar was down 0.4 percent to 84.02 yen, moving away from a 20-month high of 84.62 yen hit on Wednesday.


The euro slumped 0.7 percent to 110.91 yen also off a 16-month high of 112.59 yen reached on Wednesday.


The yen was kept under pressure after the Bank of Japan further eased monetary policy as expected on Thursday, with investors anticipating that the central bank will be persuaded to pursue more drastic measures next year.


The incoming prime minister, Shinzo Abe, has called for bolder action by the central bank to help bring Japan out of decades-long deflation.


For all the fears of a fiscal cliff debacle to come, several data series showed the United States remained on a recovery track, helping to underpin the dollar.


(Additional reporting by Masayuki Kitano in Singapore, Jennifer Ablan in New York and Ayai Tomisawa in Tokyo; Editing by Richard Borsuk)



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Park Geun-hye, South Korean President-Elect, Calls for Reconciliation


Ahn Young-Joon/Associated Press


President-elect Park Geun-hye during a news conference at her party's headquarters on Thursday in Seoul.







SEOUL, South Korea — South Korea’s president-elect, Park Geun-hye, called for national reconciliation on Thursday, a day after she was elected as the country’s first female leader in a close contest that reflected generational divides and growing unease over North Korea’s military threat.




Ms. Park, 60, the daughter of South Korea’s longest-ruling dictator, won 51.6 percent of the votes cast on Wednesday to choose a successor to President Lee Myung-bak, who was barred by law from seeking a second term.


“I will reflect various opinions of the people, whether they have supported or opposed me,” Ms. Park said in a speech Thursday. She pledged “impartiality,” “national harmony” and “reconciliation,” saying she would bring people into her government “regardless of their regional background, gender and generation.”


She also promised “the sharing of fruits of economic growth,” mindful of doubts that her conservative party, the governing Saenuri Party, would address the widening income gap that was one of the biggest issues in the campaign.


Ms. Park on Wednesday became the first presidential candidate to win a majority of the vote since South Korea adopted a democratic constitution in 1987. But the campaign hardly put the country’s divisions to rest. It rekindled a dispute over the legacy of Ms. Park’s father, Park Chung-hee, who remains a polarizing figure 33 years after his iron-fisted rule ended with his assassination in 1979.


It also highlighted a generational divide over issues like North Korea and the powerful, family-controlled business conglomerates known as chaebol. Exit polls indicated that Ms. Park won twice as many votes among people 50 and older than did her main rival, Moon Jae-in, but only half as many among voters in their 20s and 30s.


She defeated Mr. Moon in most provinces and big cities. But Seoul and the southwestern provinces of North and South Jeolla, traditionally a progressive stronghold, chose the liberal Mr. Moon, who championed bold economic investment in North Korea as a means of inducing denuclearization and more aggressive measures to tame the conglomerates, which have been widely blamed for growing economic inequality. Mr. Moon won 48 percent of the vote nationwide.


Ms. Park met Thursday with the ambassadors from the United States, China, Japan and Russia, the four other countries involved with the two Koreas in talks over the North’s nuclear weapons programs.


Worries over the North’s weapons programs flared again last week with the launching of a long-range rocket that many saw as a test of its missile capabilities. Such missiles could eventually be used to deliver a nuclear weapon.


Ms. Park on Thursday referred to the launching as “a symbolic demonstration of how serious a challenge we face in national security.”


She has, however, promised to be more open to the North than Mr. Lee, who took a hard-line approach that many South Koreans felt proved to be counterproductive.


“North Korea will wait a few months to see if Park Geun-hye will appease it with money,” said Andrei Lankov, a North Korea specialist at Kookmin University in Seoul. “If she does not — and it looks unlikely that she will, given her statements so far and the hard-liners surrounding her — then North Korea will launch provocations.”


With Ms. Park’s election, South Korea extended the tenure of its staunchly pro-American governing party and handed power to the first woman to win the post in a deeply patriarchal part of Asia. Voters appeared to prefer stability over Mr. Moon’s calls for radical change.


“This is a victory for the people’s wish to overcome crises and revive the economy,” Ms. Park told her cheering supporters after the results came in, a crowd that had gathered in freezing weather in downtown Seoul to celebrate a woman whose steeliness in the face of adversity is legend. According to her memoir, when told of her father’s assassination in 1979, she responded, “Is everything all right along the border with North Korea?”


In its starkest terms, this election was about South Korea’s continuing confrontation with its authoritarian past, and confusion over whether a conservative or liberal approach would best serve the country as it tries to stop North Korea’s excesses and to handle growing frustration over economic inequality without derailing the country’s economic miracle. Mr. Moon, a former human rights lawyer who was once imprisoned for opposing the authoritarian rule of Ms. Park’s father, campaigned on restoring liberal policies from the early 2000s, including a warm embrace of North Korea as a way of trying to curb its aggression.


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Insiders steal a march in leak prone Asian markets






SINGAPORE (Reuters) – When South Korean automaker Hyundai Motor Co announced last month it had overstated the fuel efficiency levels on around one million of its cars in the United States and Canada some investors were left fuming more than others.


Some had already sold their shares before the announcement on November 2. The stock fell 4 percent on November 1 with about 2.2 million shares changing hands, the highest trading volume of the year at that point.






“This smells pretty bad,” said Robert Boxwell, director of consulting firm Opera Advisors in Kuala Lumpur who has studied insider dealing patterns.


“It would have fallen into our suspect trading category,” he added.


Boxwell spots suspect trading by looking at how much the volume diverges from the average level in the days before a market moving announcement. In the Hyundai instance, the volume was more than five standard deviations, a measure of variation, away from the daily average of 598,741 shares over the past year.


A Hyundai spokeswoman declined to comment.


Research from the Capital Markets Co-operative Research Centre (CMCRC), an academic centre in Sydney that studies financial market efficiency, found that 26 percent of price-sensitive announcements in Asia Pacific markets showed signs of leakage in the first quarter of this year, the most recent period for which data was available.


That compared with 13 percent in North American markets.


The CMCRC says it looks for suspected information leaks by examining abnormal price moves and trading volumes ahead of price-sensitive announcements.


Investors say one reason for leaks in Asia has been low enforcement rates for insider trading and breaches of disclosure rules. Enforcement in some markets is virtually non-existent.


There are also misconceptions about whether trading on non-public information is a crime.


“The idea that insider trading is wrong rather than smart is only being ingrained in the current generation of Asian players, not the older generation who are often still in the driving seat,” said Peter Douglas, founder of GFIA, a hedge fund consultancy in Singapore.


LOSS OF CONFIDENCE


Japan’s largest investment bank Nomura Holdings was embarrassed this year after regulatory investigations found it leaked information to clients ahead of three public share offerings.


Nomura has acknowledged that its employees leaked information on three share issues it underwrote in 2010. In June, it published the results of an internal investigation that found breaches of basic investment banking safeguards against leaking confidential information and announced a raft of measures to prevent recurrence.


The bank was also fined 200 million yen ($ 2.37 million) by the Tokyo Stock Exchange and 300 million yen by the Japan Securities Dealers Association.


Such leaks hurt companies’ share prices in the long run because investors put in less money if they feel they are not on a level playing field.


“It is very damaging. You may not know how much money you’ve lost but if there is not confidence that the regulators are prosecuting and enforcing the rules on this then it undermines investor confidence and liquidity,” said Jamie Allen, secretary general of the Asian Corporate Governance Association.


The issue isn’t being ignored. Many Asian markets such as Hong Kong and China have tightened their rules on insider trading over the past decade.


Indeed some investors feel that while leaks and insider dealing are unfair, regulators in the region have more serious issues they should be tackling.


“I would like to see the regulators spend more resources on investigating and prosecuting fraud against listed companies, which severely damages shareholder value,” said David Webb, a corporate governance activist in Hong Kong, arguing insider dealing as less of an impact on a company’s long-term share price.


HTC AND APPLE


A week after Hyundai’s announcement about its problems in the United States, there was an unexpected move on the Taiwan Stock Exchange.


Shares in smartphone maker HTC Corp jumped almost seven percent on Friday, November 9, hitting the daily upper trading limit. On Sunday came the surprise announcement that the company was ending its long-running patent dispute with Apple Inc , a move seen as a positive for the stock.


The Taiwan bourse announced it was investigating the trading patterns to see if there was a possible leak.


When asked for comment, HTC referred back to a November 13 statement in which the company said it had kept the Apple settlement process confidential and has strict controls on insider trading.


Michael Lin, a spokesman for the Taiwan Exchange, told Reuters on Friday that the bourse is still working with the regulator on the case.


‘ENORMOUS LOSSES’


Michael Aitken, who oversees research at the CMCRC, said many other Asian markets lack tough enough rules to force information to be released as efficiently and timely as possible, a primary reason for the prevalence of leaks.


“Poor regulation hampers enforcement efforts,” he said pointing out that few markets have the “continuous disclosure” rules used in Australia which require listed companies to release material information as soon as possible.


In Korea, when Hyundai shares started to fall, rumours began swirling that news about a problem with some of its cars was on its way, but investors say it took the company too long to disclose what exactly was happening.


“Hyundai at that time did not confirm the rumours. We suffered enormous losses because of this,” said one fund manager, who declined to be named because he was not authorised to speak to the media.


An official from Korea Exchange declined to comment on whether it was investigating this case, saying only that the exchange looks carefully into possible cases of insider trading.


Across Asia, regulators concede that many company executives and insiders still do not appreciate that leaking or trading on material, non-public information is an offence.


“People don’t even know they are engaging in insider trading, for example if their friends are talking about it on the golf course,” said Tong Daochi director-general for international affairs at the China Securities Regulatory Commission, during a regulation conference last month.


“We try to tell society, what are the criminal issues, what are the insider trading issues? For example we have held 27 press conferences to tell the public what kind of activities are involved in insider trading and to let people know that this is an active crime.” ($ 1 = 84.2600 Japanese yen) ($ 1 = 0.6147 British pounds)


(Reporting by Rachel Armstrong; additional reporting by Nishant Kumar in HONG KONG and Hyunjoo Jin in SEOUL; Editing by Emily Kaiser)


Wireless News Headlines – Yahoo! News





Title Post: Insiders steal a march in leak prone Asian markets
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The X Factor: Who Won the Show?






The X Factor










12/20/2012 at 10:10 PM EST







from left: Fifth Harmony, Tate Stevens and Carly Rose Sonenclar


Ray Mickshaw/FOX


The X Factor ended on a particularly high note for one of the show's finalists Thursday night.

After performing live one last time the night before, Britney Spears's contestant Carly Rose Sonenclar, along with L.A. Reid's Tate Stevens and Simon Cowell's Fifth Harmony all vied for the $5 million recording contract awarded to the season's winner.

Click after the jump to find out who won the coveted prize.

L.A. Reid's "Over 25" contestant Tate Stevens, 37, is the winner of The X Factor season 2. He's a dad of two and a road worker from Missouri.

"First and foremost I got to thank the man upstairs for taking care of me, my family, all the country music fans – God bless you," he said after hearing the results. "Thank you so much for all the votes. This is the best day of my life."

L.A. said, "You deserve this. I'm proud to work with you. I think you represent The X Factor really, really well. So on behalf of Simon and myself and all the judges, congratulations."

Britney's teen contestant, Carly Rose Sonenclar, landed in second place. She and Britney looked emotional but didn't get a chance to say anything at the end.

Third place went to Simon Cowell's girl group, Fifth Harmony.

Member Camila Cabello, said, "I feel like in this competition we've gained more than $5 million could because we've gained friends for life ... I'm so happy to be where I am right now."

Simon said, "I have a feeling that we're going to be hearing and seeing a lot more of these girls in the future."

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AP IMPACT: Big Pharma cashes in on HGH abuse


An Associated Press investigation shows that a federal crackdown on illicit foreign supplies of human growth hormone has failed to stop rampant misuse, and instead has driven record sales of the drug by some of the world's biggest pharmaceutical companies.


The crackdown, which began in 2006, reduced the illegal flow of unregulated supplies from China, India and Mexico. But since then, Big Pharma has been satisfying the steady desires of U.S. users and abusers, including many who take the drug in the false hope of delaying aging.


An AP analysis of pharmaceutical company data shows that from 2005 to 2011, inflation-adjusted sales of HGH were up 69 percent. During the same period, sales of the average prescription drug rose 12 percent.


Under U.S. law, HGH can only be dispensed for very rare conditions.


EDITOR'S NOTE _ Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the second of a two-part series.


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Wall Street falls as "cliff" talks sour, but hopes remain

NEW YORK (Reuters) - U.S. stocks sold off late in the day to close at session lows on Wednesday as talks to avert a year-end fiscal crisis turned sour, even as investors still expect a deal.


The S&P 500 slipped after a two-day rally that took the benchmark index to its highest close in two months. Defensive-oriented shares led the decliners, including health care and consumer staples.


General Motors bucked the overall weakness to surge 6.6 percent to $27.18 after the automaker said it will buy back 200 million of its shares from the U.S. Treasury, which plans to sell the rest of its GM stake over the next 15 months.


President Barack Obama and congressional Republicans are struggling to come up with a deal to avoid early 2013 tax hikes and spending cuts that many economists say could send the U.S. economy into recession.


House Speaker John Boehner, the top Republican in Congress, said in a one-minute press conference that his chamber will pass a proposal that Obama had already threatened to veto as it spares many wealthy Americans from tax hikes needed to balance the budget. Obama has already agreed to reductions in benefits for senior citizens.


"My guess is they're close to a deal, and right before, it looks like the deal is about to blow up either on manufactured or legitimate reasons," said Uri Landesman, president of hedge fund Platinum Partners in New York.


He said if the market thought a deal was in real danger, the S&P 500 would slide below 1,400. It stands now near 1,435, not far from a two-month high.


The CBOE Volatility Index <.vix> surged 11.5 percent to 17.36, but has remained relatively stable. Its 14- 50- and 200-day averages are all within 1.1 points.


Landesman said the VIX's stability indicates "the bulls have control of this market still."


Banks and energy shares - groups that outperform during periods of economic expansion - have led recent gains, indicating a shift to focusing on a growing economy as Wall Street looks past the budget talks.


Defensive sectors led Wednesday's downturn, with the S&P health care sector index <.gspa> down 1.1 percent.


The Dow Jones industrial average <.dji> dropped 98.99 points, or 0.74 percent, to 13,251.97. The S&P 500 <.spx> lost 10.98 points, or 0.76 percent, to 1,435.81. The Nasdaq Composite <.ixic> fell 10.17 points, or 0.33 percent, to 3,044.36.


Herbalife Ltd shares tumbled 12.1 percent to $37.34 after William Ackman, one of the world's biggest hedge fund managers, said he is shorting the stock of the weight management products company.


Oracle shares helped cap the Nasdaq's loss after the company reported earnings that beat expectations on strong software sales growth. Oracle jumped 3.7 percent to $34.09.


Knight Capital Group Inc climbed 5.4 percent to $3.51 after it agreed to be bought by Getco Holdings in a deal valued at $1.4 billion. The stock, which nearly collapsed after a trading error in August, remains down about 70 percent so far this year.


Shares of Chinese display advertising provider Focus Media Holding Ltd jumped 6.7 percent to $25.52 after it agreed to be bought by a consortium of private equity funds led by the Carlyle Group for about $3.6 billion.


Data showed homebuilding permits touched their highest level in nearly 4-1/2 years in November. The PHLX housing index <.hgx> fell 0.8 percent, but has gained 66.4 percent this year as the housing market has turned the corner.


About 6.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly above the daily average so far this year of about 6.45 billion shares.


Advancing and declining issues were almost even on both the NYSE and the Nasdaq.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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