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11/30/2009

Brazil’s President Elbows U.S. on the Diplomatic Stage

BRASÍLIA — Brazil’s ambitions to be a more important player on the global diplomatic stage are crashing headlong into the efforts of the United States and other Western powers to rein in Iran’s nuclear arms program.

Luiz Inácio Lula da Silva, Brazil’s president, is set to receive Iran’s president, Mahmoud Ahmadinejad, here on Monday in his first state visit to Brazil. The visit is part of a larger push by Mr. da Silva to wade into the seemingly intractable world of Middle East politics, and follows visits in the last two weeks by Israel’s president, Shimon Peres, and Mahmoud Abbas, president of the Palestinian Authority.

But the visit is drawing criticism from lawmakers and former diplomats here and in the United States, who say it could undercut Western efforts to press Iran on its nuclear program, and consequently chill Brazil’s relations with the United States and damage its growing reputation as a global power.

Brazilian officials say the goal of the visit is to strengthen commercial ties between the two countries and help bring peace to the Middle East.

“This is part of Brazil projecting its role and strength as a global player,” said Michael Shifter, vice president of the Inter-American Dialogue, a policy research group in Washington. “And part of this has to do with Brazil sending a message to Washington that it will deal whomever it wants to deal with.”

And beyond the nuclear standoff, critics in Brazil and the United States say Mr. da Silva’s reception legitimizes Mr. Ahmadinejad just five months after what most of the world sees as his fraudulent re-election, followed by a brutal crackdown on dissent.

“This state visit is a gross error, a terrible mistake,” said Representative Eliot L. Engel, Democrat of New York, chairman of the House Subcommittee on the Western Hemisphere. “He is illegitimate with his own people, and Brazil is now going to give him the air of legitimacy at a time when the world is trying to figure out how to prevent Iran from having nuclear weapons. It makes no sense to me, and it tarnishes the image of Brazil, quite frankly.”

Relations between the United States and Brazil were already tense after Mr. da Silva’s government criticized the United States over its handling of the crisis in Honduras and increasing its military presence in Colombia.

But Mr. da Silva’s overture to Iran is consistent with President Obama’s policy of engagement, and the Obama administration says it is optimistic that the meeting will not damage and at best could reinforce the efforts already under way by Washington and European powers to deal with Iran.

“We would hope that all our friends and allies would understand that this is really a critical moment for Iran itself,” Ian C. Kelly, a State Department spokesman, said Thursday. “We would hope that Brazil would play a constructive role in trying to get Iran to do the right thing and fulfill its international obligations.”

Celso Amorim, Brazil’s foreign minister, said Mr. da Silva was encouraged by Western leaders, including President Obama, to seek a “direct and open dialogue” with Iran, in particular on the nuclear issue.

“It was said and reiterated that it was in the interest of Western nations that Brazil has a good interface with Iran,” Mr. Amorim said in an interview.

Brazilian officials said Mr. da Silva would try to sell Iran on the benefits of a Brazilian-style nuclear program, which is constitutionally limited to civilian use.

But Mr. Amorim made clear that Brazil did not see its role as carrying water for the proposed agreement for Iran to export most of its enriched uranium for processing into nuclear fuel.

“We are not here to convince Iran to accept some proposal,” he said. “Brazil is interested in peace.”

Since his election in 2002, Mr. da Silva has sought to cement Brazil’s dominance as Latin America’s economic and diplomatic leader, using its economic might to raise Brazil’s foreign-policy profile.

His government has also lobbied for a permanent seat on the United Nations Security Council and has become a respected voice in world climate change discussions. In recent months, he has added Middle Eastern diplomacy to his portfolio.

Brazil is no stranger to the region. Its national oil company, Petrobras, is helping Iran develop its oil fields and the two countries did about $2 billion in trade in 2007, mostly in Brazilian exports of food to Iran, Mr. Amorim said.

Brazil joined United Nations peacekeeping missions in Egypt after the 1956 Suez Crisis and has been involved in the Middle East ever since, said David Fleischer, a political science professor at the University of Brasília.

“Brazil is just starting to realize the weight it has,” Mr. Amorim said. “It wasn’t Brazil that went looking for the Middle East, it was the Middle East that went looking for Brazil.”

Brazilian officials say the holy grail of Mr. da Silva’s Middle Eastern initiative is to improve relations between Israel and the Palestinians, and they see Iran as a key player in resolving the conflict.

Success in this endeavor “would really put Brazil on the map and might put Lula in line for the Nobel Prize,” Mr. Fleischer said.

But it would have been difficult to have chosen a more formidable or polarizing quest. Many critics do not see Mr. Ahmadinejad — who has denied the Holocaust, called for Israel to be wiped off the map and backs anti-Israel militias — as a constructive force in the Middle East.

More than 1,500 people protested his visit this month in São Paulo, home to Brazil’s largest Jewish community, and a smaller protest took place on Sunday in Rio de Janeiro. Another is planned for Brasília on Monday.

It is not only the Israeli side that is leery of Mr. Ahmadinejad. Mr. Abbas, the Palestinian leader, said after meeting Mr. da Silva in Brazil on Friday that he had asked him to urge Iran to end its support for Hamas, the radical Islamist movement that controls Gaza.

But both Mr. Abbas and Mr. Perez urged Mr. da Silva to join the Middle East peace process. “Brazil, as an important country, and President Lula, as a respected leader, can play an important role,” Mr. Abbas told the newspaper Folha de São Paulo.

Some political analysts and American officials say that in his effort to burnish his credentials as a statesman, Mr. da Silva is marching to his own drummer rather than cooperating with allies to achieve larger geopolitical goals.

“As Brazil becomes more relevant on climate change and in world economic forums it is not going to be able to so openly criticize or be antagonistic with other major powers without paying a political price for it,” said Christopher Garman, an analyst with Eurasia Group, a political risk consultancy in New York. “Brazilian policy makers will no longer be able to have their cake and eat it too.”

But a diplomatic success would go a long way toward muting the criticism.

“Brazil should expect criticism for hosting Ahmadinejad to be sure,” said Julia E. Sweig, a Latin America expert at the Council on Foreign Relations. “But if it can play a moderating role — and clearly Washington is hoping as much — on the nuclear issue, it can surely deal with the critics.”

India's Reliance shares up on value in Lyondell deal

* Deal seen adding to Reliance bargaining power in sourcing

* Deal comes as global economy is recovering

* Co has more than enough financial strength to digest buy (Updates share movement, adds details, quotes)

MUMBAI, Nov 23 (Reuters) - Shares in energy major Reliance Industries (RELI.BO) rose to one-month highs on Monday as traders said its offer for bankrupt petrochemicals company LyondellBasell Industries [ACCEIN.UL] was well timed and would help its core businesses.

Over the weekend India's Reliance said it had made a cash offer to buy control of LyondellBasell.[ID:nN21473364]

A deal would create one of the largest petrochemical firms in the world, and comes when valuations are still low following the global downturn and Reliance is cashed up, analysts said.

Sources have put the value of the deal at around $10 billion to $12 billion, which would be India's second-biggest ever foreign takeover. In 2007, Tata Steel (TISC.BO) bought Corus for $13 billion.

However, the deal differs from other big overseas deals given the relative size of companies, balance sheet strength and bankruptcy status of the LyondellBasell, Goldman Sachs said in a research report.

"We have been noting that Reliance could pursue inorganic growth as we see no major projects lined up to consume about US$20 billion of excess cash flow for FY2011 to FY2014 after its committed capex," Goldman Sachs said.

It would also mark a return of Indian firms to large-scale M&A, after the global credit crunch and economic downturn made it difficult for firms such as aluminium maker Hindalco (HALC.BO) and Tata Motors (TAMO.BO), which bought Jaguar Land Rover, to digest big deals made in 2007 and early 2008.

At 0625 GMT, Reliance, which has a 14 percent weighting in the main Mumbai index .BSESN, was up 3.1 percent at 2,191 rupees. The main index gained 0.8 percent.

Reliance is India's largest conglomerate with interests in petrochemicals, refining, oil and gas exploration, and retail.

STRONG CASH POSITION

Reliance, which has a market value of $75 billion, has been looking to take advantage of low valuations to expand internationally. Analysts said it has more than required muscle to finance the deal.

It has $4 billion in cash, $8 billion in treasury stock that can be sold, and, if it doubled its current net debt-to-equity it could borrow another $10 billion, Macquarie said in a recent research note.

A deal would give Reliance greater bargaining power in sourcing, and a strong presence in the United States and Europe, and technology patents.

Bing Tries To Buy The News

Rupert Murdoch is pointing a gun to Google's head, and Microsoft is helping him pull back the trigger. For the past few weeks, Murdoch and his officers at News Corp. have been very vocal about their distaste for Google and their desire to lead other media companies in a boycott of sorts.

Murdoch keeps threatening to stop letting Google index the WSJ.com and his other media sites, and wants other news sites to join him in this self-imposed silence. The folks at Microsoft's Bing think this is a great idea. Not only that, but the FT reports that Microsoft is in fact in discussions with News Corp. and other publishers about the possibility of paying them to remove their sites from Google's search index. This report comes on the heels of a meeting in Europe where Bing dangled the prospect of premium spots in search results to publishers and outright money for search R&D.

Microsoft is not afraid to buy search market share, which is what it's doing with the Yahoo search deal and even its Cashback program. But with these latest talks, it is literally trying to buy the news, or at least exclusive access to the news.

Bing can't buy all the news, it can only buy certain brands. If Bing can somehow become the only place you can find news results and working links to the Wall Street Journal and other top papers such as the New York Times, the Washington Post, and the LA Times, for instance, that would be a big reason to switch for a lot of folks. But it's not clear how much Bing would have to pay the news companies of the world for them to give up all the traffic Google sends them in return for a fraction of that traffic and some cash.

Even Google couldn't afford to strike such deals. Says Murdoch, of Google, "If they were to pay everybody for everything they took from every newspaper in the world, and every magazine, they wouldn't have any profits left."

In order to actually make a dent in Google's market share, Bing would have to pay such exorbitant sums to so many different news companies that it would be difficult to recoup its investment. Bing certainly get some marketing buzz out of any such move, but that's about it.

The big problem with a search engine trying to buy market share by buying parts of the news is that information spreads so quickly these days, exclusives last about 30 seconds. That information will end up on a site that is indexed by Google. Or the same news will be broken by someone else on the Web before the WSJ.com even gets to it.

Exclusive indexing goes against the Web's inherent openness. Companies that try to curtail that openness don't last long on the Web.

Looking for a Leader in the Post-Oprah Landscape













There is no single replacement for Oprah Winfrey.

That is not necessarily a statement about the dominance of her 23-year-old television institution, “The Oprah Winfrey Show.” Rather, it is the reality of television syndication.

As Ms. Winfrey prepares to leave the broadcast airwaves in two years, a stable of talk shows are in competition to fill her time slot on more than 200 stations across the country. Individual stations are bound to place differing bets, drastically reshaping the daytime TV landscape.

As with NBC and Jay Leno earlier this year, the television chess board is being rearranged by a talk show host. Ms. Winfrey’s departure could even affect the ratings for the network evening newscasts. “All of a sudden, there are so many moving pieces,” Bill Carroll, who recommends syndicated shows to stations for the Katz Television Group, said on Friday.

Even before Ms. Winfrey announced on Friday that 2011 would be, as she put it, the “exact right time” to step off her broadcast stage, TV executives were jostling on behalf of Ellen DeGeneres, Dr. Mehmet Oz, Phil McGraw and other hosts who aim to benefit from the syndication shake-up.

Analysts say that Ms. DeGeneres and Dr. Oz, in particular, stand to gain, because their deals with stations will come up for renewal at the same time that Ms. Winfrey intends to depart. Aspiring hosts could emerge as well. “I’m sure there are a number of people calling their agents today and saying, ‘I think I could be the next Oprah,’ ” Mr. Carroll said.

No matter what, it seems, Ms. Winfrey comes out a winner in syndication. Already, she has groomed another decade’s worth of new talk show hosts. She ordained Mr. McGraw in 2002, and his talk show, “Dr. Phil,” now ranks second behind her own hour. She followed up with “Rachael Ray” in 2006 and “The Dr. Oz Show” this fall. “Dr. Oz” is already a hit. And now she is developing a program for Nate Berkus, her favorite interior designer, for fall 2010.

Already, executives at Ms. Winfrey’s distributor, CBS, and at its competitors are thinking about how to fill the Oprah void — and how to capture new market share when she exits.

Mr. Carroll said the industry would be carefully watching the scheduling decisions of the stations owned and operated by ABC that carry Ms. Winfrey in most of the country’s biggest TV markets, usually in the 4 p.m. hour. Ms. Winfrey, whose program has averaged 6.8 million viewers this season, guides many of those viewers to the station’s local newscasts.

Closely watching, as well, will be evening news anchors like Katie Couric. “World News” on ABC, to be anchored by Diane Sawyer beginning in January, has historically been given a lift by “Oprah,” analysts say, to the detriment of the third-place “CBS Evening News” with Ms. Couric.

“Look at what happens in sports when a dynasty gets broken up. It opens up the playing field for everyone else,” said a senior executive at a distributor who, like other television executives interviewed for this article, requested anonymity because programming negotiations normally take place in private.

The playing field is shrinking, however. Fewer viewers are watching daytime talk shows than a decade ago, mirroring the broader audience shift from broadcast television to cable and making it more difficult for stations to afford the expensive license fees that CBS charges for Ms. Winfrey’s show.

Analysts say the prospect of lower license fees in the future contributed to Ms. Winfrey’s decision to move to cable. (Her production company, Harpo, is a co-owner in OWN: The Oprah Winfrey Network, which is expected to make its debut in January 2011. After “The Oprah Winfrey Show” ends in September of that year, she will “participate in new programming” for OWN, Harpo said in a statement on Friday.)

In the syndication structure, stations try to recoup the licensing fee by selling advertising time, about 11 minutes worth during “The Oprah Winfrey Show.” But for many stations, “Oprah” is so expensive that it is a loss leader.

Ms. Winfrey’s daytime talk show will be missed, Emily Barr, the president and general manager at WLS-TV in Chicago, told The Associated Press, “but we will also move on and see what else is out there.”

ABC’s station group could fill the “Oprah” void with local newscasts or develop its own talk show. “Those are the only ways to control costs going forward,” Mr. Carroll said.

ABC executives have also talked in the past about moving “The View,” which the network owns, to the late afternoon.

What about Ms. Winfrey’s other stations? Syndication executives expect “The Ellen DeGeneres Show,” which is distributed by Warner Brothers and is licensed to NBC-owned stations until 2011, to increase its audience share. Currently, “Ellen is more for entertainment and Oprah is more for information,” said Joel Berman, a former president of worldwide TV distribution for CBS Paramount. Citing Ms. Winfrey’s star booking power, he said “Ellen will be a natural venue for these big celebrity guests to go.”

The two women have become closer over the years, promoting speculation that Ms. Winfrey was somehow anointing Ms. DeGeneres as a successor. The two women share the cover of O, The Oprah Magazine this month.

Ms. Winfrey “will always be the queen of daytime television,” Ms. DeGeneres told her audience after taping her talk show on Thursday — “and she also said she is leaving me all of her money,” she jokingly added.

“The Dr. Oz Show,” which had its premiere in September, largely on Fox stations, could also benefit. Out of the gate, it has averaged 3.5 million viewers in daytime, only 250,000 fewer than “Dr. Phil.” Two weeks ago, CBS extended its station deals for “Dr. Phil” through 2014 in 20 of the country’s top 25 markets.

The contracts for “Dr. Oz” and “Dr. Phil” forbid them from being shown at the same hour as Ms. Winfrey — but those restrictions end when her talk show ends.

The shake-up may also make more room for lower-rated talk shows by Martha Stewart, Tyra Banks and Bonnie Hunt, among others.

Looking farther afield, Ms. Couric, whose CBS News contract is up in 2011, has long been mentioned as a possible syndicated star.

And of course, the competitive landscape two years from now may also include Ms. Winfrey herself. Stations will be watching to see what the OWN channel shows at 4 p.m.

“Will anyone equal the ratings Oprah had done in the past, or even what she’s doing today? If I were going to make an educated guess, I would say no,” Mr. Carroll said. “Will there be a program leader in the new environment? Yes. Who that will be, only the viewers know.”

Al Gore Takes "Green" Message to Saturday Night Live

Al Gore took his message to Saturday Night Live for NBC's "Green Week," joking that he had a "backup plan" and zinging the network for the patronizing opportunity to let him appear once a year — "like Punxsutawny Phil."

"I'm going to start acting crazy," he told "Weekend Update" anchor Seth Myers. "I think it's crazy that our politicians aren't worried about the climate crisis. So it's time to outcrazy the crazy."

Among his insane plans: planting trees in politicians' front yards in the middle of the night with toy guns taped to them — pointed at the door. "So that when they wake up and walk out of their houses in the morning, they'll think it's the forest coming to get their revenge."

NBC holding annual green week

The 61-year-old former vice president — who's won the Nobel Prize, an Academy Award and a Grammy for trying to bring an international focus on global warming — said he knows the score and needs to make his time count when he's on TV.

"Once a year during 'Green Week,' NBC calls up Al Gore to come on TV to talk about the environment," he deadpanned. "Thanks, by the way. I can't tell you how exciting it is to have a bully pulpit on a fourth-place network."

At least Gore had his say during that segment.

Earlier in the show, Gore appeared in a the recurring skit sending up a BET show, "What Up With That?" — the whole premise of which is the host takes the few words that guests can get out of their mouths and starts riffing on those works with the chorus, you guessed it, "What up with that?"

Gore, who also appeared on 30 Rock last week, was almost lost amid the bedlam of a goofy program featuring a snake-wielding wrestler, "a singer from the future" (played by host Joseph Gordon-Levitt) and a dancing clown.

Watch Gore on SNL's "Weekend Update"

Michael Jackson's glove sells for $350,000 at auction

NEW YORK (Reuters) - Michael Jackson's famous white glove sold for $350,000 at a memorabilia auction on Saturday, soaring far past pre-sale estimates, while a black jacket he wore during a 1989 world tour fetched $225,000.

The Jackson memorabilia was the highlight of an auction of hundreds of rock'n'roll items, including many not associated with the "King of Pop," who died in June.

Darren Julien, CEO of Julien's Auctions, which ran the auction, called the glove "the Holy Grail of Michael Jackson," and many expected it to sell for far more than its pre-sale estimate of about $50,000.

With the added commission, the final price excluding taxes, ran to some $420,000.

The buyer was Hong Kong businessman Hoffman Ma.

Bidding for the black, strap and zipper-laden jacket Jackson wore during the 1989 "Bad" tour soared to $225,000, more than 20 times its estimate. With commission, the tab came to about $275,000.

Fans and dealers turned out at the Hard Rock Cafe in New York's Times Square for the sale that included a car driven by Jackson, as well as David Bowie's guitar and memorabilia from the Beatles to Bo Diddley.

"I never got to see Michael, and now that he's gone this is the closest I could get," said Jazmynn Moore, 19, a student from Manhattan.

The glove was worn by Jackson when he first staged the famous moonwalk dance at the 1983 Motown 25 television special. The opening bid of $10,000 leaped immediately to $120,000 before peaking at $350,000.

Most of the 80 Jackson lots consisted of items that came from friends and family to whom Jackson had given them, the auctioneer said.

Jackson was somewhat of a collector himself, having paid more than $1.5 million for the "Gone With the Wind" best picture Oscar statue at Sotheby's auction, one of the highest prices ever paid for memorabilia at auction.

The auction house had valued the Jackson collection at $80,000 to $100,000. But Julien said such pre-auction estimates were intentionally conservative to help generate interest. Many of Jackson's items sold for 10, or even more than 20 times the estimates.

Julien's had been preparing for a huge auction of Jackson memorabilia in April that was canceled after an agreement with Jackson, who had filed a lawsuit demanding the return of certain items.

During the promotion for that sale, Julien's had amassed a large database of Jackson collectors from Asia to the Americas, and many of the winning Internet bidders were from Japan or Hong Kong.

11/29/2009

Flu kills four pilgrims in Saudi Arabia


Mecca, Saudi Arabian (CNN) -- A teenager and three elderly people in Saudi Arabia for the hajj pilgrimage have died of the H1N1 flu virus, the Saudi Health Ministry said.

The victims of the virus were a 17-year-old Nigerian female and a Sudanese man, an Indian man and a Moroccan woman who each were 75 years old.

"These cases were discovered too late," said Dr. Khaled Al-Marghalani, the ministry spokesman. "Some were old, and the others had pre-existing chronic conditions."

Al-Marghalani said the Sudanese man initially went to a doctor who treated him, but not for H1N1.

"So when his doctor sent him to the hospital, and he was treated for H1N1, it was too late," he said.

The annual pilgrimage to Mecca, Saudi Arabia, is required of Muslims at least once in their lives, and millions of people around the globe make the trek to attend. This year, the hajj begins Wednesday, and many pilgrims have been arriving days and weeks ahead of the event, which coincides with flu season.

When Arab health ministers met in Cairo, Egypt, a few months back, it looked like several groups might even be banned from this year's event because of the flu. They were children under 12, adults over 65, pregnant women and people with chronic illnesses.

The Saudis didn't ban anybody from coming and left the responsibility to the pilgrims' countries of origin. In effect, officials issued guidelines only for people at risk.

Two days ago, Saudi Arabia's health minister, Dr. Abdullah Al-Rabeeah, gathered representatives to discuss efforts to detect the ailment.

"It would be nice to have more time to prepare [for the possibility of H1N1 spreading in Saudi Arabia] ahead of the hajj, but I am very satisfied with all the measures taken and have great confidence," he said before the meeting.

Al-Marghalani said the "safe weapon" for the kinds of H1N1 cases that resulted in the deaths is Tamiflu, the drug used to fight influenza.

"If we lose Tamiflu, we will lose the war. But Tamiflu is only effective in the first 48 hours of when the symptoms appear," he said.

Cases of Tamiflu-resistant H1N1 causing new concern

By Steve Sternberg, USA TODAY
The momentum of the H1N1 flu outbreak has fallen off, but flu activity is still high and Tamiflu-resistant virus may have begun to spread. USA TODAY'S Steve Sternberg asks experts for their perspective.

Q: How bad is H1N1 now?
A: Forty-three states are reporting widespread cases, down from 46 last week, says Anne Schuchat, director of the Centers for Disease Control and Prevention's National Center for Immunization and Respiratory Diseases. "We are beginning to see some declines in influenza activity, but there's still a lot of influenza everywhere."

Q: Has the flu peaked?
A: "I wish I knew," Schuchat says. "Influenza is unpredictable, and it's so early in the year to have this much disease."

Q: Is the vaccine supply improving?
A: Yes, she says. As of Friday, 54.1 million doses of H1N1 vaccine were available for states to order, 11 million more than a week ago. By Wednesday, states had ordered 93% of the amount that was available to them. About 94.5 million doses of seasonal flu vaccine also have been distributed nationwide.

Q: What is the latest about Tamiflu-resistant cases?
A: Four patients at Duke University Medical Center in Durham, N.C., and at least five in an unidentified hospital in Wales have become infected with H1N1, or swine flu, viruses that no longer respond to treatment with Tamiflu. Flu viruses swap genes as part of their normal evolution; that means resistant viruses could quickly spread worldwide, says Duke's Daniel Sexton.

Q: Why should I worry about Tamiflu-resistant cases of flu?
A: Tamiflu and Relenza are the most effective antiviral drugs for treating flu. H1N1 is still largely vulnerable to both drugs, unlike many seasonal flu viruses, which are now broadly resistant and more difficult to treat. Most people will get well with rest and fluids. A hard-to-treat virus can be deadly for some patients, such as pregnant women or children with asthma or cerebral palsy, who need effective treatment because they account for a disproportionate number of deaths caused by swine flu.

Q: Does that mean H1N1 will become as deadly as the 1918 virus?
A: There's no evidence to suggest the virus is getting more virulent, Schuchat says. But it may become harder to treat.

Q: Will Thanksgiving have any impact on the epidemic?
A: "We've seen with a lot of respiratory infections that there are increases in January right after the Christmas holiday," Schuchat says. "All the kids get together with their grandparents. There's an exchange of a lot of warmth and love, but there's a little exchange of viruses, too. We think its critical that if you're sick, stay home. And if your child is sick, to keep them away from others."