General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

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Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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RIM to introduce new BlackBerry 10 devices on January 30

(Reuters) – Research In Motion Ltd plans to introduce its new line of BlackBerry 10 smartphones on January 30, the company said on Monday, giving investors a measure of confidence the long-awaited devices are approaching the finish line.

The Waterloo, Ontario-based company, a one-time pioneer in the smartphone industry, is betting its future on the new line of products, which will be powered by its new BlackBerry 10 operating system.

RIM has struggled over the last two years as its devices lost ground to snazzier and faster smartphones such as Apple Inc’s iPhone and Samsung Electronics Co Ltd‘s Galaxy line.

In a brief statement, RIM said the twice-delayed devices will be launched simultaneously in multiple countries. It will introduce two BlackBerry 10 smartphones, along with the platform that powers them at the event.

“While it is clearly an uphill battle for RIM given the recent launch of the iPhone 5 device and the aggressive marketing dollars being pushed toward Windows 8, we view it as a modest positive that a date is now officially set for the launch of the new BB10 devices,” Wells Fargo analyst Jennifer Fritzsche wrote in a note to clients.

RIM has said it plans initially to roll-out touchscreen devices. Phones with the mini QWERTY keyboards that many long-time BlackBerry users rave about will come a few weeks later, while lower-end versions of both devices will be launched later in the year.

The company did not say when the devices will be available in stores. That will be announced at the event.

Evercore Partners analyst Mark McKechnie believes the BB 10 devices will be available within two to four weeks of the launch event, but some such as Peter Misek of Jefferies expect the devices to go on sale only in March.

RIM’s Nasdaq-listed shares were up 3.2 percent at $ 8.82 in late afternoon trading on Monday. Its Toronto-listed shares rose nearly 3 percent to C$ 8.81.

ALL OR NOTHING

RIM says its new devices will be faster and smoother and have a large catalog of applications that are now crucial to the success of any new line of smartphones.

Last week, the new platform and devices won U.S. government security clearance, potentially allowing both U.S. and Canadian government agencies to deploy the new smartphones as soon as they are available.

These were the first BlackBerry products to win Federal Information Processing Standard 140-2 certifications ahead of their introduction, the company said.

RIM began carrier tests on the BB10 devices last month. The Canadian company hopes they will help it win back some of the market share it lost to the iPhone and devices that run on Google Inc’s Android operating system.

RIM’s stock has fallen more than 90 percent from a peak of over $ 148 in 2008. But at Friday’s close, the shares were up about 20 percent over the last two months on signs that the BlackBerry 10 devices are finally likely to make it to market.

(Reporting by Euan Rocha; Editing by Lisa Von Ahn, Janet Guttsman and Andre Grenon)

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Hathaway says ‘Les Mis’ made her feel deprived

NEW YORK (AP) — Anne Hathaway credits her new husband Adam Schulman for helping her get through the grueling filming of the screen adaptation of “Les Miserables.”

In “Les Mis,” the 30-year-old actress plays Fantine, a struggling, sickly mother forced into prostitution in 1800s Paris.

Hathaway lost 25 pounds and cut her hair for the role. She tells the December issue of Vogue, the part left her in a “state of deprivation, physical and emotional.” She felt easily overwhelmed and says Shulman was understanding and supportive.

The couple wed in September in Big Sur, Calif. Hathaway wore a custom gown by Valentino whom she collaborated with on the design. Working with the designer is a memory she says she will “treasure forever.”

The December issue of Vogue hits stores Nov. 20.

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Online:

http://www.vogue.com/

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Firms to speak on tax avoidance

12 November 2012 Last updated at 02:58 ET

Executives from some of the world’s most-recognised companies are due to give evidence before Parliament on Monday on the issue of tax avoidance.

The head of Google UK, as well as top managers from Starbucks and Amazon, will speak before the Public Accounts Committee on taxing multinationals.

All have been accused of paying little or no tax on their UK earnings.

Many global firms create corporate entities in low-tax jurisdictions for the purposes of paying tax.

For example, a firm may design a product or an app for a smartphone in the US, have it made in Asia and sell it in the UK. But the company – or a regional unit – may be legally incorporated in a fourth place with less onerous tax laws.

The question is then which country’s tax authorities should get the tax receipts and over what share of the sales.

Taxed in the UK

Matt Brittin, the chief executive of Google UK, as well as Starbucks chief financial officer Troy Alstead and Amazon’s director of public policy Andrew Cecil, will speak before the committee, which is headed by Margaret Hodge.

In recent months, many multinationals have been subjected to bad publicity over their tax arrangements:

Continue reading the main story

Corporation tax for [multinationals] operating in the UK is close to being a voluntary payment”

End Quote Lord Myners

Most of the firms have said that they meet all their legal obligations on tax in the UK and around the world.

The Organisation for Economic Co-Operation and Development (OECD) is holding a public consultation in Paris this week on international tax systems and has received 1,400 pages of comments on the subject.

Marlies de Ruitter, tax expert at the OECD, says there is a problem: “We have seen countries creating tax incentives to attract investment.

“We have also seen that countries are hesitant to introduce strict anti-avoidance rules, because if they are stricter than others, businesses will leave. An international, co-ordinated effort is needed.”

The former City minister, Lord Myners, said the current system did not work. “Corporation tax for [multinationals] operating in the UK is close to being a voluntary payment,” he said.

“You either shrug your shoulders and say you get benefits from secondary effects though employment taxes, VAT, the multiplier effect, and so on. Or alternatively, you look for some other form of taxation.”

Lord Myners recommended considering some form of sales tax.

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Clarke’s 218 puts Australia on front foot

BRISBANE (Reuters) – Australia captain Michael Clarke scored a brilliant unbeaten double century to give the hosts a remarkable 37-run first innings lead on the fourth day of the first test against South Africa on Monday.

Supported first by a maiden century from opener Ed Cowan in a record stand of 259, and then by Mike Hussey‘s 86 not out, Clarke’s 218 helped lift Australia from 40 for three when he took to the crease on Sunday to 487 for four when stumps were drawn.

It was Clarke’s sixth test century, and his third double hundred, in the 15 tests since he was named captain last year in the wake of the Ashes humiliation and Australia’s quarter-final exit at the World Cup.

Although by no means a chanceless knock, the 31-year-old played with patience when South Africa’s vaunted pacemen got anything out of the Gabba track before punishing anything loose with some fine shot-making.

When he carried his bat back to the pavilion at the end of the day to the raucous cheers of a sparse crowd at the famous Brisbane ground, Clarke had faced 350 balls over 504 minutes and scored 21 fours.

“I’m very happy with that,” Clarke, who accumulated his 1,000 test run of the year during the innings, said in an interview on the boundary.

“I didn’t feel great at the start and I think Ed Cowan batted beautifully.

“We’re in a great position with a 30-odd lead. I’d like another 70 odd runs in the morning and then I want to have a crack with the ball. We’ll see what happens.”

Cowan departed for 136 in heartbreaking fashion just before tea, run out at the non-striker’s end when Dale Steyn got a finger to a Clarke drive that hit the stumps and the opener was caught out of his crease backing up.

RECORD PARTNERSHIP

His partnership with Clarke was an Australian record for the fourth wicket at the Gabba, beating the 245 Clarke and Mike Hussey made against Sri Lanka in 2007.

Cowan’s wicket was the only wicket to fall on the day and Hussey started pouring on the runs as if determined to get the record back for his own partnership with his captain.

The 37-year-old bucked his poor recent form against South Africa by reaching his half century off just 68 balls with a drive through long-off and was closing on a century of his own when play ended.

It was Hussey’s cut four off Morne Morkel with which Australia overhauled South Africa’s first innings tally of 450 and put themselves in with an unlikely chance of even winning a test which lost an entire day to rain on Saturday.

Clarke’s negotiation of the “nervous nineties” for his century had been fraught and he was nearly run out going for a second run that would have brought him to the hundred mark.

There were no such jitters on his approach to the two hundred mark, which he passed by slapping the ball through mid-on for two runs before giving the badge on his helmet another kiss.

Cowan’s century was a retort to those critics who have consistently questioned his place in the team since he made his debut in last year’s Melbourne test against India.

The 30-year-old lefthander reached the mark two overs after lunch by pulling a short Vernon Philander delivery for four to the square leg boundary, beginning his joyous celebrations before the ball hit the rope.

South Africa’s number one test ranking is on the line in the series, which continues with matches in Adelaide and Perth after Brisbane.

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Labels maintain new music spend despite sales slump

LONDON (Reuters) – Record labels say they have maintained high levels of investment in new music despite sweeping changes to their business in the digital age and a decade of falling revenues caused by sliding album sales and online piracy.

According to a new study from industry body IFPI published on Monday, record companies invested $ 4.5 billion in A&R (artists and repertoire) and marketing in 2011.

That was down from $ 5 billion in 2008, partly due to a significant drop in the amount record labels were willing to spend on marketing up-and-coming talent at a time of shrinking income.

But the A&R side fell less sharply to $ 2.7 billion last year versus $ 2.8 billion in 2008 despite a decline of 16 percent in the trade value of the industry globally over the same period.

Presenting the report in London, Max Hole, COO of Universal Music Group International, said he was cautiously optimistic that the music business would return to growth soon, helped by the proliferation of digital platforms.

“The stats are getting better, the rate of decline is slowing,” he told reporters.

“There’s every reason to hope that in the next couple of years we’ll reach the low point and start to go back to growth.”

According to the IFPI, in the first nine months of 2012, global recorded music sales had fallen by around one percent year-on-year after a fall of three percent in 2011.

The industry peaked in 1999 when sales were $ 28.6 billion, but has shrunk every year since, reaching $ 16.6 billion in 2011.

“I just feel that we are at a tipping point of lots and lots of services coming on, and services that really are in touch with the consumer,” Hole said, adding that, crucially, the platforms were more attractive than illegal pirate sites.

BANDS WANT LABELS

The report showed that more than 70 percent of unsigned acts in Britain and Germany wanted a record deal, despite the perception that many artists are keen to go it alone with the help of social networking.

Major labels have been accused of being slow to adjust to the challenges posed by digital music and illegal downloads, and relying too heavily on older, established acts to make money.

But the IFPI report sought to underline their role in unearthing new talent in a notoriously risky business.

Revenues invested in A&R represent around 16 percent of industry turnover, compared with 15.3 percent in the pharmaceuticals and biotech sector and 9.6 percent in software and computing.

The IFPI estimated breaking a pop act in a major market typically costs from $ 750,000 to $ 1.4 million, including a $ 200,000 advance, $ 200-300,000 on recording, $ 50-300,000 on videos, $ 100,000 on touring and $ 200-500,000 on marketing.

The Internet has revolutionized the way record labels go about their business, the report said.

A&R representatives today rely on the Internet as much as they do on attending gigs up and down the country to discover the next best thing, although most still want to see an act live before making up their minds.

According to the report, record labels are providing far more digital content as part of their marketing and promotion, and tend to sign deals with artists which go well beyond the shrinking recorded music business.

Brand partnerships, offering songs for use on television, in film and in commercials, and linking up singers from different regions to generate cross-over interest are just some of the ways they can help establish a new act, the IFPI added.

Hole said the recent merger between Universal, already the world’s largest music label, and EMI, would not lead to less A&R spending, but more.

“We have stated quite categorically that our intention is to reinvest in EMI and boost it and we think it will result in more investment in A&R,” he said.

“We operate a multi-label structure and that was something that had declined at EMI,” he added. “We’re going to reverse that.”

(Editing by Steve Addison)

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Will “The Simpsons” finally win an Oscar?

NEW YORK (TheWrap.com) – “The Simpsons” may get another shot at an Oscar thanks to a short starring Maggie Simpson, the youngest member of the yellow family from Springfield.

The Academy has narrowed its list for the Animated Short Award from 56 to 10, it announced on Friday, and that list includes “Maggie Simpson in ‘The Longest Daycare.’” The short, written by “Simpsons” lifers like James L. Brooks and Matt Groening, aired before screenings of “Ice Age: Continental Drift.”

The four-and-a-half-minute 3D short pits Maggie against her nemesis, Baby Gerald.

The Academy shut “The Simpsons Movie” out of the 2008 awards, prompting the legendary animated show to mock the Oscars before the 2011 awards.

The nominations for the 85th Academy Awards will be announced January 10, 2013 and the awards themselves will take place February 24 at the Dolby Theatre in Hollywood.

Here are the nine other short-list nominees for best animated short:

“Adam and Dog,” Minkyu Lee, director (Lodge Films)

“Combustible,” Katsuhiro Otomo, director (Sunrise Inc.)

“Dripped,” Léo Verrier, director (ChezEddy)

“The Eagleman Stag,” Mikey Please, director, and Benedict Please, music scores and sound design (Royal College of Art)

“The Fall of the House of Usher,” Raul Garcia, director, and Stephan Roelants, producer (Melusine Productions, R&R Communications Inc., Les Armateurs, The Big Farm)

“Fresh Guacamole,” PES, director (PES)

“Head Over Heels,” Timothy Reckart, director, and Fodhla Cronin O’Reilly, producer (National Film and Television School)

“Maggie Simpson in “The Longest Daycare”,” David Silverman, director (Gracie Films)

“Paperman,” John Kahrs, director (Disney Animation Studios)

“Tram,” Michaela Pavlátová, director, and Ron Dyens, producer (Sacrebleu Productions)

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U.S. investigator in Afghan rampage case suggests gunman not alone

TACOMA, Washington (Reuters) – The wife of an Afghan villager killed in a rampage blamed on a decorated U.S. officer told an Army investigator that more than one soldier was present when her husband was shot dead at their home in March, the investigator testified on Saturday.

Military prosecutors are seeking the death penalty for Army Staff Sergeant Robert Bales, accusing him of killing 16 villagers, mostly women and children, when he ventured out of his remote camp on two revenge-fueled forays over a five-hour period in March.

The wife’s account, relayed by Army criminal investigator Leona Mansapit, appeared to cast doubt on the government’s case that Bales alone was responsible for the deaths, although survivors have so far testified to seeing only a single soldier.

The U.S. government, which has been laying out its case against Bales in a pre-trial hearing aimed at deciding whether he can be sent for court martial, says a coherent and lucid Bales acted alone and with “chilling premeditation”.

Mansapit said that the wife of Mohamed Dawood, who was killed in the village of Najiban, recalled a gunman entering the couple’s room shouting about the Taliban, while another man, a U.S. soldier, stood at the door.

The shootings in Afghanistan’s Kandahar province marked the worst case of civilian slaughter blamed on an individual U.S. soldier since the Vietnam War and damaged already strained U.S.-Afghan relations.

Mansapit said the wife, who spoke to her through an interpreter, said one of the men pulled her husband out of the door, while the other stopped her from following. One of the men then put a gun to her husband’s head and killed him, while the other continued to yell about the Taliban, grabbing her by the hair and slamming her head against the wall, she said.

Mansapit, who was called by the defense, recalled the woman as saying that outside there were more soldiers “speaking English among themselves”. She put the woman’s age at about 25 but did not name her. It was not immediately clear whether the wife would testify to the hearing herself.

The testimony came a day after a father and two sons described being attacked by a sole U.S. soldier in their family compound in the Afghan village of Alkozai. So far, the only sworn references to more than one soldier have been second hand.

AFGHAN TESTIMONY

A veteran of four combat tours in Iraq and Afghanistan, Bales faces 16 counts of premeditated murder and six counts of attempted murder, as well as charges of assault and wrongfully possessing and using steroids and alcohol while deployed.

Prosecutors have already presented physical evidence to tie Bales to the crime scene, with a forensic investigator saying a sample of blood on his clothing matched a swab taken in one of the compounds where the shooting occurred.

Bales’ lawyers have not set out an alternative theory to the prosecution’s case, but have pointed out inconsistencies in testimony and highlighted incidents before the shooting where Bales lost his temper easily, possibly setting up an argument that he was suffering from post-traumatic stress disorder.

Gathering evidence and witness statements was complicated by the speedy burial of victims, the inability of U.S. investigators to access the crime scenes for three weeks after the violence, and the dispersal of possible witnesses after treatment at a Kandahar hospital.

Bales’ lead civil defense attorney John Henry Browne, who is in Kandahar to question witnesses, complained early in the investigation that his team was denied access to villagers wounded in the attacks.

One of the villagers, a 15-year-old boy who was wounded in the rampage in Alkozai but survived by hiding, testified to the hearing at a U.S. Army base in Washington state that the shooter wore a U.S. military uniform.

“He put his pistol in my sister’s mouth and then my grandmother started wrestling with him,” the boy, introduced to the court by the single name of Rafiullah, said via video link from Kandahar Air Field. “He shot me in my legs.”

The boy’s testimony was consistent with the recollections of another teenage boy, Sadiquallah, who testified previously that he saw only a single American that night.

(Reporting By Bill Rigby; Editing by Cynthia Johnston and Pravin Char)

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Which? calls for fuel duty delay

10 November 2012 Last updated at 21:46 ET

Consumer organisation Which? is calling for a delay to the increase in fuel duty planned for January.

MPs will vote on Monday on the planned 3p a litre increase. Labour has previously said the increase should be postponed until at least April.

Which? said 85% of people it surveyed had expressed concerns about rising fuel prices.

Pollsters Populus interviewed 2,100 UK adults on behalf of Which? online between October 26 and 28.

The survey suggested 39% of people would cut back on motoring costs, while one in 10 said they had used savings to cover motoring costs.

Which? also said the figures showed 8.7 million households curbed their spending on essentials last month, while 6.4 million households used savings to cover outgoings.

The organisation’s executive director Richard Lloyd said: “Rising fuel prices are the number one consumer worry and people are already telling us they’re having to cut back and dip into savings just to get by.

Continue reading the main story

The government recognises that the rising price of petrol is a significant part of households’ day-to-day spending”

End Quote Treasury spokesman

“On the back of inflation-busting energy bill rises and increasing food prices, consumers can little afford another hit on their household budget. We’re calling on the government to think again about their plans to increase fuel duty in January.

“The forthcoming Autumn Statement must focus on measures that will help put money back in the pockets of consumers, because the economic recovery is at risk if we don’t increase consumer confidence.”

Previous delay

Shadow treasury minister Cathy Jamieson said: “Families, pensioners and businesses are still feeling the squeeze. Labour will vote on Monday for a delay in this fuel duty increase at least until next April.”

The duty increase was originally to be introduced last August, but in June Chancellor George Osborne announced that he was postponing it for five months.

At the time Mr Osborne told the Commons the delay was being funded by what he called “larger-than-forecast savings in departmental budgets.”

A Treasury spokesman said: “The government recognises that the rising price of petrol is a significant part of households’ day-to-day spending.

“Since coming to office the government has listened to the concerns of motorists about high pump prices and acted. Fuel is now 10p a litre lower than under the previous government’s plans.”

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Israel kills Gaza rocket crewman in second day of clashes

GAZA (Reuters) – An Israeli air strike killed a Palestinian militant in the Hamas-governed Gaza Strip on Sunday as a surge in cross-border violence entered its second day, local officials said.

Islamic Jihad, a smaller faction than Hamas which often operates independently, identified the dead man as one of its own, saying he was a member of a rocket crew hit by an Israeli missile in Jabalya, northern Gaza.

The Israeli military confirmed carrying out an air strike in the area. The death brought to six the number of Palestinians killed by Israel since four of its troops were hurt in a missile attack on their jeep along the Gaza boundary fence.

Islamic Jihad said it had fired 70 short-range rockets and mortar bombs across the border since Saturday, salvoes which drove Israeli residents to blast shelters. At least one Israeli, in the town of Sderot, was wounded, ambulance workers said.

Israel described the jeep ambush as part of a Palestinian strategy of trying to curb its countermeasures against possible cross-border infiltration. Israeli forces often mount hunts for tunnels and landmines on the inside of the Gaza boundary, creating a no-go zone for Palestinians.

“Of course we don’t accept their attempt to change the rules,” Defence Minister Ehud Barak told Israel’s Army Radio.

“The essence of the struggle is over the fence. We intend to enable the IDF (Israel Defence Forces) to work not just on our side but on the other side as well.”

Palestinians said four of Saturday’s dead were civilians hit by an Israeli tank shell while paying respects at a crowded mourning tent in Gaza’s Shijaia neighborhood. Israel denies targeting civilians.

The bloodshed puts internal pressure on Hamas, which, though hostile to the Jewish state, has sat out some of the recent rounds of violence as it tried to consolidate its Gaza rule and reach out to neighboring Egypt and other foreign powers.

Israel blames Hamas for any attacks emanating from Gaza, but has shown little appetite for a major sweep of the territory which might strain its own fraught ties to the new Islamist-rooted government in Cairo.

(Writing by Dan Williams; Reporting by Nidal al-Mughrabi; Editing by Todd Eastham)

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