Wednesday, 15 October 2014

TOP NEWS U.S. foreclosure activity falls to eight-year low

WASHINGTON (Reuters) - Foreclosure activity across the United States declined last month to the lowest level since July 2006, as banks reclaimed fewer homes, according to a report released on Thursday.



RealtyTrac, which tracks housing market data, reported foreclosure filings for 106,866 properties across the country, an 8.6 percent decrease from August and a 18.6 percent drop from a year earlier.



September was the 48th consecutive month of year-on-year declines in overall foreclosure activity, which includes foreclosure notices, scheduled auctions and bank repossessions.



"September foreclosure activity was back to pre-housing bubble levels nationwide, in large part thanks to a continued slide in bank repossessions," said Daren Blomquist, vice president at RealtyTrac.



Lenders repossessed 22,930 homes in September, a 13 percent decline from the month before, while 48,399 properties were set for foreclosure auctions, a 5.5 percent decrease.



Default notices dropped 9.8 percent to 8,840.



(Reporting by Elvina Nawaguna; Editing by Steve Orlofsky)





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TOP NEWS Exclusive: Commerzbank settlement with U.S. postponed probe

By Karen Freifeld

NEW YORK (Reuters) - Commerzbank AG's (CBKG.DE) settlement with U.S. authorities over alleged sanctions violations has been postponed, possibly until the end of the year, as prosecutors seek to coordinate the resolution of a separate probe stemming from transactions at the German bank connected to the massive Olympus Corp (7733.T) accounting fraud, according to people familiar with the matter.

    Commerzbank had been primed to settle with U.S. regulators and prosecutors by the end of September over its dealings with Iran and other countries under U.S. sanctions, Reuters has reported.

    The sanctions settlement was expected to cost the bank about $650 million, people familiar with the deal have told Reuters, and the bank had been expected to enter into deferred prosecution agreements with prosecutors that would suspend criminal charges.

    But the accord was put on ice after the Manhattan U.S. Attorney's office, which is not involved in the sanctions deal, looked into the bank's records in connection with the $1.7 billion accounting fraud at Japan's Olympus, said two sources who did not want to be identified. Other people with knowledge of the matter did not dispute the reasons for the delay.

The total amount for a coordinated settlement is now expected to cost Commerzbank more than $650 million, one of the two sources said, but the person did not provide a new estimate.

Media outlets have previously reported that a probe related to lax money-laundering controls could delay Commerzbank's sanctions related settlement, but the Olympus connection has not been revealed, nor the new target for a settlement date.

Representatives for the Manhattan U.S. Attorney's office and Commerzbank declined to comment.

    The Olympus fraud is considered one of the biggest corporate scandals in Japan's history. In 2011, the camera and medical equipment maker admitted the company used improper accounting to conceal massive investment losses over more than a decade and restated years of financial results.

Commerzbank handled hundreds of millions of dollars of transactions connected to the fraud, court filings show, and Manhattan U.S. Attorney Preet Bharara began to investigate the bank's records and compliance with the Bank Secrecy Act, the two sources said.

The Bank Secrecy Act (BSA) is the United States' prime anti-money laundering law and requires monitoring and flagging suspicious transactions.

Authorities have connected a former banker at Commerzbank, Chan Ming Fon, to the Olympus accounting scheme. Chan pleaded guilty in U.S. District Court in Manhattan last year to conspiracy to commit wire fraud.

    Chan worked at Commerzbank in Singapore until 2000, was at Societe Generale until 2004 and then formed his own company where he continued to work for former Olympus executives, according to a report commissioned by Olympus in 2011.

Chan is cooperating with the government, court filings show. His lawyer declined to comment.

Commerzbank in recent years has already been focused on improving its controls after it entered into an agreement in 2012 with the Federal Reserve Bank of New York to improve compliance with BSA/anti-money laundering laws and regulations.

    The New York branch still failed to maintain adequate controls, the Federal Reserve found last year, and issued a cease and desist order. It is not clear if the Fed action was related to the bank's activities with Olympus.

A spokeswoman for the Federal Reserve declined comment.

Authorities involved in the sanctions settlement view the BSA probe as coming "out of left field," one of the two sources said. But from the government's perspective, it doesn't make sense to resolve one case and a couple of months later, have another against the same bank, the person said.

     Authorities want to consider a joint settlement that could come by the end of the year, the source said.

     The authorities involved in the sanctions settlement are the Department of Justice, the U.S. Attorney in Washington, D.C., the Treasury Department, the Federal Reserve, New York's Department of Financial Services, and the Manhattan District Attorney. All declined to comment on the settlement.

     In addition to the $650 million, Reuters has reported that New York's Department of Financial Services, which is expected to get a little less than half the money, wants Commerzbank to fire a handful of employees involved with the alleged sanctions-related wrongdoing.

     The inquiry into Commerzbank's activities with sanctioned entities began in 2010 with the Manhattan District Attorney's office, a different source said. Authorities have found that the bank allegedly stripped identifying information from incoming wires to avoid red flags that would have helped regulators police the transactions, Reuters has reported.

(Reporting by Karen Freifeld; Additional reporting by Aruna Viswanatha in Washington; Editing by Karey Van Hall and Lisa Shumaker)



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TOP NEWS Hong Kong police use pepper spray on protesters, anger simmers over beating

By Clare Baldwin and Carlos Barria

HONG KONG (Reuters) - Hong Kong police used pepper spray on Thursday to stop pro-democracy protesters from blocking a major road near the office of the city's embattled leader amid public anger over the police beating of a protester a day earlier.

At police headquarters in the nearby entertainment district of Wan Chai, hundreds of people gathered outside to express outrage at the beating, with dozens queuing to lodge formal complaints.

Authorities on Wednesday said police involved in the beating of Ken Tsang Kin-chiu, a member of the pro-democracy Civic Party, would be suspended.

Footage of the beating has gone viral and injected fresh momentum into a protest movement that had been flagging after nearly three weeks of demonstrations over Chinese restrictions on how Hong Kong will choose its next leader.

In the latest confrontation, Hong Kong's public broadcaster RTHK said protesters rushed onto Lung Wo road next to the office of Chief Executive Leung Chun-ying, dragging plastic barriers and other objects with them. A Reuters photographer saw protesters later scuffling with a small group of police on the side of the road. Police repelled them using pepper spray.

By mid-morning on Thursday, a few hundred protesters remained camped out around the main protest site, with about 50 police standing guard. Many demonstrators were still sleeping and there was no sign of tension.

"Even though it was a bit tense overnight, I could still sleep. I still hope the government will restart dialogue with the students. I still hope our demand for universal suffrage can eventually come true," said Brian Yip, a 19-year-old student.

Protesters caught police by surprise 24 hours earlier, erecting makeshift barricades to block the thoroughfare, prompting police to move in and arrest 45 people and clear the road. Traffic chaos at other protest sites in the city has severely disrupted some parts of the Asian financial hub.

At its peak, 100,000 protesters had been on the streets. Those numbers have dwindled significantly. But a hardcore group of demonstrators, mostly students, has kept up the pressure on Hong Kong authorities, who have called the protests illegal.

China rules Hong Kong under a "one country, two systems" formula that gives the city wide-ranging autonomy and freedoms not enjoyed in mainland China, with universal suffrage an eventual goal.

But Beijing, which has branded the protests illegal, says only candidates screened by a nominating committee will be able to contest a full city-wide vote to choose the next chief executive in 2017.

Britain's national broadcaster, the BBC, said in a statement that Chinese censors had blocked its website, adding it seemed to be a "deliberate censorship". The BBC's English-language website was still inaccessible in China on Thursday.

"POLICE HAVE BETRAYED US"

Tsang was taken to hospital after being beaten and activists released photographs showing bruising on his face and body.

"I'm afraid that one day I will come out for a protest and the police will do the same thing to me," said Jen Lau, 28, a social worker who was sitting on the sidewalk outside the police headquarters in Wan Chai just after midnight.

"Even though he is a protester, he should not be treated this way. I think the police should receive disciplinary action or something even more serious."

Several social workers printed a "wanted" poster with color pictures of the police officers they said were responsible for the beating, and were carrying it up and down the line of those waiting to file complaints.

"I think the police have betrayed us Hong Kong citizens," said Tony Yip, 23, a research assistant at a science museum. "They are using violence against ordinary citizens."

Leung has said there was "zero chance" China's leaders would give in to protesters' demands, a view shared by most political analysts and many Hong Kong citizens. Protesters have also demanded Leung resign.

China's ruling Communist Party believes it has offered enough concessions to Hong Kong in the past, and would give no ground because it wants to avoid setting a precedent for reform on the mainland.

On Wednesday, Hong Kong's most prominent tycoon, Li Ka-shing, urged the protesters to go home.

Li, Asia's richest man and chairman of property developer Cheung Kong (Holdings) Ltd, had made no public comment on the protests but broke his silence to say if Hong Kong's rule of law broke down it would be the city's "greatest sorrow".

"I urge everyone not to be agitated," he said. "I urge everyone not to let today's passion become the regret for tomorrow. I earnestly request everyone to return to their families."

(Additional reporting by Donny Kwok and Kinling Lo, Writing by Mike Collett-White; Editing by Dean Yates and Nick Macfie)



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TOP NEWS White House shifts into crisis mode on Ebola response

By Roberta Rampton

WASHINGTON (Reuters) - Rising public anxiety about the Ebola virus has forced the White House to shift into crisis mode and cancel two days of planned political events as President Barack Obama strives to show he has control over stopping the spread of the deadly disease.

Just three weeks ahead of critical midterm elections, Obama is facing increased pressure from Republican critics. They say he has been too slow to protect Americans, drawing parallels to what they have described as foot-dragging on dealing with the threat from Islamic State militants in Iraq and Syria.

Democrats who are at risk of losing control of the Senate in the November elections are worried that public concerns over Obama's management of Ebola could hurt them, too.

Obama's job approval ratings are at 39 percent, according to Reuters-Ipsos polls in the first week of October.

"At a time in which his job approval rating is quite low and his party is suffering because of it, I think that this is just one more cut in what's turned out to be the death by a thousand cuts for President Obama," said Ross Baker, a political scientists at Rutgers.

Republican lawmakers, including U.S. House Speaker John Boehner, turned up the pressure on Wednesday with calls for travel bans for the three African nations afflicted by the Ebola outbreak.

Polls show that move would be popular with Americans. The White House has ruled out a ban, saying it would hamper the movement of supplies and aid workers needed to help stop the epidemic in the region.

Other lawmakers, including some Democrats, have urged the White House to name a point person to coordinate the response, lead briefings, and command public confidence.

"It's getting away from them, and this is becoming a real concern for us," said a Democratic Senate aide, who spoke on condition of anonymity.

Proponents of the approach are seeking a figure like former Coast Guard Admiral Thad Allen who took charge of the response to the BP oil spill in the Gulf of Mexico in 2010.

Until now, Tom Frieden, the head of the Centers for Disease Control, has been the face of the administration on Ebola. But the new domestic cases have forced him to backtrack from some early overconfident statements about the ability of the U.S. medical system to contain the threat.

The White House has resisted calls for a "czar" to pull together the international and domestic response to the disease, arguing that Lisa Monaco, Obama's homeland security aide, has been adeptly filling that role. A White House spokesman declined to comment late on Wednesday on whether that thinking has changed.

But lawmakers worry Monaco, who also plays a lead role coordinating U.S. efforts to combat Islamic State militants, has too much on her plate.

Over the past few weeks, the White House has sought to reassure the public by trying to strike a balance between demonstrating the administration is on top of the situation while not trying to feed a sense of public panic.

On Wednesday, that balance shifted. A second Texas nurse contracted Ebola from a patient who died from the disease.

The nurse had recently traveled by plane and officials began tracing a large network of people who may have had contact with her. The nurse had told the CDC she had a fever before she boarded the plane, but was not stopped from boarding, a federal source said late on Wednesday. Frieden earlier in the day told reporters she should not have been aboard.

The new infection contributed to a slide in the stock market.

Obama, who seldom changes his schedule, no matter what crisis is before him, canceled speeches and fundraisers in Connecticut, New Jersey, Rhode Island and New York.

He met with his cabinet for about two hours, and then told Americans that the risk of a widespread outbreak was very low.

Obama needs to make more such efforts to talk directly to Americans about Ebola to show he is in control, said Peter LaMotte, a senior vice president at Levick, a crisis communications firm.

"He needs to be taking a leadership role rather than letting the experts speak on his behalf," LaMotte said.

Rather than taking the symbolic step of appointing an Ebola czar, Obama should take a more forward role himself to explain the risks and urge calm, said Stephen Morrison, a senior vice president at the Center for Strategic and International Studies.

"The biggest danger here is public fear, and panic," Morrison said, noting there may be more cases of Ebola to come.

"The president, it seems to me, is the person who should be there, walking that line," he said.

(Additional reporting by Patricia Zengerle, Richard Cowan and David Lawder; editing by Caren Bohan and Peter Henderson)



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TOP NEWS U.S. health official allowed new Ebola patient on plane with slight fever

By Lisa Maria Garza and Terry Wade

DALLAS (Reuters) - A second Texas nurse who has contracted Ebola told a U.S. health official she had a slight fever and was allowed to board a plane from Ohio to Texas, a federal source said on Wednesday, intensifying concerns about the U.S. response to the deadly virus.

The nurse, Amber Vinson, 29, flew from Cleveland to Dallas on Monday, the day before she was diagnosed with Ebola, the U.S. Centers for Disease Control and Prevention (CDC) said.

Vinson told the CDC her temperature was 99.5 Fahrenheit (37.5 Celsius). Since that was below the CDC's temperature threshold of 100.4F (38C), "she was not told not to fly," the source said. The news was first reported by CNN.

Chances that other passengers were infected were very low because Vinson did not vomit on the flight and was not bleeding, but she should not have been aboard, CDC Director Dr. Thomas Frieden told reporters.

Congress will hold a hearing on Thursday on the U.S. response to Ebola, with Frieden and other officials scheduled to testify.

Vinson was isolated immediately after reporting a fever on Tuesday, Texas Department of State Health Services officials said. She had treated Liberian patient Thomas Eric Duncan, who died of Ebola on Oct. 8 and was the first patient diagnosed with the virus in the United States.

Vinson was transferred to Emory University Hospital in Atlanta by air ambulance and will be treated in a special isolation unit. Three other people have been treated there and two have been discharged, the hospital said in a statement.

Television images showed Vinson walking from an ambulance to an Emory hospital door with an escort, both of them in protective clothing.

Vinson, a worker at Texas Health Presbyterian Hospital in Dallas, had taken a Frontier Airlines flight to Cleveland from Dallas/Fort Worth International Airport on Friday.

She returned to Dallas on Monday aboard Frontier Flight 1143. The CDC said it was asking the more than 130 passengers who were also on the flight to call a CDC hotline.

LOW LIKELIHOOD OF OUTBREAK

In Washington, President Barack Obama said the likelihood of a widespread Ebola outbreak was "very, very low." But he pledged a more aggressive response to U.S. Ebola cases.

Obama met with Cabinet officials to discuss the government's response after canceling trips to various U.S. states on Wednesday and Thursday to focus on the Ebola crisis.

House of Representatives Speaker John Boehner, an Ohio Republican, said Obama should consider a temporary ban on travel to the United States from countries suffering from an Ebola outbreak.

At least 4,493 people, predominantly in West Africa, have died in the worst Ebola outbreak since the disease was identified in 1976. The virus can cause fever, bleeding, vomiting and diarrhea, and spreads through contact with bodily fluids.

Vinson's trip to visit family members in Ohio put a second U.S. metropolitan area on Ebola alert. She is related to three Kent State University employees and the school's health services director, Dr. Angela DeJulius, said they had been asked to remain off campus for 21 days.

They will monitor themselves for possible symptoms of Ebola, she said.

Cleveland Clinic and the Metro Health System said they had put on paid leave employees, mostly nurses, who were on Vinson's flight to Cleveland from Dallas. They were returning from a nursing conference in Texas.

The Ohio health department said the CDC was sending staff to Ohio to help coordinate Ebola efforts.

U.S. airline stocks tumbled again on Wednesday on renewed fears of a drop-off in air travel. Ebola concerns also contributed to a 1 percent drop in the Dow Jones Industrial Average, which was under pressure from global economic worries.

Over the weekend, nurse Nina Pham, 26, became the first person to be infected with Ebola in the United States. She had cared for Duncan during much of his 11 days in the hospital.

The hospital said Pham continued to be "in good condition."

National Nurses United, which is both a union and a professional association for U.S. nurses, said on Tuesday that the hospital lacked protocols to deal with an Ebola patient.

'PILED TO THE CEILING'

Basic principles of infection control were violated by both the hospital's Infectious Disease Department and CDC officials, the nurses said in a statement, with no one picking up hazardous waste "as it piled to the ceiling."

The hospital said in a statement that it had instituted measures to create a safe working environment and it was reviewing and responding to the nurses' criticisms.

The hospital also said it would offer a room to any affected worker who wanted to avoid the possibility of exposing other people to the Ebola virus.

Dr. Daniel Varga, the chief clinical officer for Texas Health Resources, which includes Texas Health Presbyterian Hospital, will apologize on Thursday for mistakes made in treating Duncan, the man who died of Ebola in Dallas.

"We did not correctly diagnose his symptoms as those of Ebola. We are deeply sorry," he said in online testimony prepared for the congressional hearing.

The Dallas County Commissioners Court is set on Thursday to discuss whether to ask Governor Rick Perry to declare a local emergency. The declaration would help reimburse Dallas County for expenses related to Ebola.

Dallas Mayor Mike Rawlings said at a news conference that Vinson, the second infected nurse, lived alone and health officials moved quickly to clean affected areas and to alert her neighbors and friends. A decontamination could be seen taking place at her residence.

(Additional reporting by Jim Forsyth in San Antonio, Susan Heavey and Doina Chiacu in Washington and Jon Herskovitz in Austin, Texas; Writing by Jonathan Kaminsky and Curtis Skinner; Editing by Bernadette Baum, Jonathan Oatis, Tom Brown, Lisa Shumaker and Michael Perry)



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TOP NEWS U.S. says no talk now about extending Iran nuclear negotiations

By Matt Spetalnick and Parisa Hafezi

VIENNA (Reuters) - A senior U.S. official said on Wednesday a deal on Iran's nuclear program was still possible by late next month and there were no talks now about extending the deadline, after Tehran and Moscow indicated more time may be needed.

Speaking before a meeting between the U.S., Iranian and European Union foreign ministers, the State Department official said "we're working on creative ways to give us all of the assurances we need" that Iran will not develop nuclear weapons.

"There's a lot of ways to get to 'yes' here," the senior U.S. official said, declining to be named.

However, there were still significant gaps in negotiating positions on Iran's uranium enrichment program, which is at the heart of a decade-old dispute which over the years has often raised fears of a new Middle East war.

"We don't know if we'll be able to get to an agreement, we very well may not," the official added.

Iran and six world powers - the United States, France, Germany, China, Russia and Britain - aim to end a decade-old nuclear standoff by a self-imposed Nov. 24 deadline.

In a sign of attempts to accelerate their efforts, U.S. Secretary of State John Kerry, Iranian Foreign Minister Mohammad Javad Zarif and European Union foreign policy chief Catherine Ashton were holding talks in Vienna on Wednesday.

The negotiations are centred on curbing Iran's atomic activity, which Tehran says is peaceful but the West fears may be aimed at developing a nuclear weapons capability, in exchange for lifting sanctions.

But with less than six weeks to go before the target date, Western officials say there are still important differences between the sides, especially over the future scope of Iran's production of enriched uranium, which can be used to fuel atomic energy plants but can also provide the fissile core of a bomb if purified to a high degree.

NO "SACRED" DEADLINE DATE

Iran's Parliament Speaker Ali Larijani said in Geneva the United States should stop focusing on the number of Iran's uranium enrichment centrifuges, which he described as a "trivial matter", and concentrate on pushing for a deal.

Western governments want Iran to cut its centrifuge capacity to the low thousands so that it would take Tehran a long time to purify enough uranium for an atomic weapon. Tehran has rejected demands to significantly reduce the number below the 19,000 it has now installed, of which roughly half are operating.

One of Iran's chief negotiators, Deputy Foreign Minister Abbas Araqchi, last week raised the possibility that the talks could be extended, and Russian Foreign Minister Sergei Lavrov on Tuesday said the deadline date was not "sacred".

But the State Department official said: "There is still time to get this done ... In places gaps have narrowed, but the Iranians have some fundamental decisions to make," the official said. "We're not talking about an extension at the moment."

Lavrov, speaking in Paris on Tuesday where he met Kerry, said he was "sure that a compromise is possible" in the negotiations with Iran.

"I can't guarantee you that it would be reached by November 24. This date is not sacred," he told Russian television.

Iran rejects Western allegations that it is seeking nuclear weapons capability, but has refused to halt uranium enrichment, and has been hit with U.S., EU and U.N. Security Council sanctions as a result. Israel has threatened possible military action against Iran if it is not satisfied with any deal.

Iran's Zarif said the sides "might need more time" to discuss the issues and potential solutions, Iran's ISNA news agency reported on Wednesday.

Ashton, Zarif and senior officials from the six powers known as political directors will meet in Vienna on Thursday.

(Additional reporting by Fredrik Dahl in Vienna, Vladimir Soldatkin in Moscow and Tom Miles in Geneva; Writing by Fredrik Dahl; Editing by Dominic Evans and Angus MacSwan)



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TOP NEWS Yemen's Houthis advance near al Qaeda stronghold

By Mohammed Ghobari

SANAA (Reuters) - Yemen's new Shi'ite Muslim powerbrokers sent fighters towards an al Qaeda stronghold on Wednesday, raising the possibility of a showdown between the politically ascendant Houthi movement and the hardline Sunnis of the transnational militant network.

Witnesses said dozens of cars carrying armed Houthi fighters were seen arriving in the city of Ibb, bordering al-Bayda province, a bastion of al Qaeda in the Arabian Peninsula (AQAP).

AQAP, which views Shi'ites as heretics and Houthis as pawns of Iran's revolutionary Shi'ite theocracy, last week claimed responsibility for a suicide bomb attack on a Houthi gathering in the capital Sanaa that killed at least 47 people.

That attack was seen as a sign of AQAP's anger at the Houthis' takeover of Sanaa on Sept. 21, a lightening assault that enabled the group to impose its will on the weak and fractured administration of President Abd-Rabbu Mansour Hadi.

Residents said some Houthi fighters had gathered at the main stadium in Ibb, 150 km (90 miles) south of Sanaa.

"The governor and his aides received the armed men outside the city and entered with them," a provincial official told Reuters. Another convoy of several cars carrying Houthis were later seen on the outskirts of Taiz, a city 50 km south of Ibb.

There was no immediate word on the intentions of the Houthi fighters in Ibb. But they arrived hours after clashes between Houthis and fighters from an al Qaeda-linked group, Ansar al-Sharia, killed at least 10 and wounded dozens in Radda in al-Bayda province.

HOUTHIS ENTER HODEIDAH

The intensity of the clashes reported by medical sources late on Tuesday, forced dozens of families to flee.

The Houthis, who hail from the northern highlands and claim to champion the interests of the Zaydi community which makes up a fifth of the 25 million population, appear determined to impose their authority outside the capital as well as in it.

On Tuesday they extended their control to the Red Sea port of Hodeidah, deploying checkpoints and also taking control of the city's airport, apparently with the agreement of the police, local officials said.

Hodeidah is the second largest port in the Arabian peninsula nation after Aden, a southern city on the Gulf of Aden.

Also on Wednesday, residents and a local official said a drone strike hit a car carrying suspected al Qaeda militants in Shabwa province. The car was completely burnt and destroyed.

In a separate sign of the fragility of Yemen's embattled state, southern separatists seeking to split from the north set an ultimatum for the government to evacuate its soldiers and civil servants by Nov. 30.

The Southern Herak movement also asked foreign firms producing oil and gas in the region to halt exports immediately.

"The state of the south is coming and no power can stop us from achieving this," the statement said.

Any move to break away by the south would be watched closely by a war-scarred region critical to world oil supplies.

Yemen shares a long border with the world's top oil exporter Saudi Arabia and flanks busy shipping lanes such as those in the strategic Bab El Mandeb strait west of Aden.

MOST OIL FROM THE NORTH

Southern Herak asked all companies operating in oil and gas to halt their exports until technicians appointed by the movement could oversee the process and revenues are placed in banks under the name of a new southern state.

Yemen is a small producer with proven oil reserves of about 3 billion barrels. In March U.S. authorities estimated Yemen's output at 100,000 barrels per day, mostly from the Marib-Jawf area in the north, with the rest from Masila in the southeast.

France's Total, the biggest foreign investor with activities in the south, could not immediately be reached for comment.

The Herak statement capped several days of growing separatist activism triggered by the Houthis' capture of Sanaa.

Herak appears to have drawn inspiration from the Houthis' ability to dictate terms to Hadi and to outmanoeuvre a military establishment weakened by rifts, a spectacular rise to national importance for a once obscure rural political movement.

The Houthis ascent is just the latest blow to central authorities in Yemen, which have struggled to keep control since mass protests in 2011 forced its long-serving president, Ali Abdullah Saleh, to step down.

Western and Gulf countries are worried that continued instability in Yemen could strengthen al Qaeda on the southern flanks of Saudi Arabia, the world's top oil exporter.

(Additional reporting by Mohammed Mukhashaf in Aden; Writing by Amena Bakr and Yara Bayoumy, Editing by Sami Aboudi and William Maclean)



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TOP NEWS North, South Korea militaries hold talks after border firing

SEOUL (Reuters) - High-ranking military officials from North and South Korea met on Wednesday to discuss recent border altercations including exchanges of fire but they did not resolve their differences, South Korea's Defence Ministry said.

North Korea's military fired shots on Friday at big balloons released by a private activist group from the South carrying leaflets with messages critical of North Korean leader Kim Jong Un.

Some bullets landed in South Korea and its military fired back. There were no casualties.

Earlier last week, the two sides exchanged fire after a North Korean patrol boat crossed a sea border that the North has long disputed in an area where naval clashes have in the past killed scores of sailors on both sides.

The military officials met at the request of North Korea at the Panmunjom truce village on their fortified border, said South Korean Defence Ministry spokesman Kim Min-seok.

It was the first time in more than three years that military officials from the two sides have held talks.

"The mood of the meeting was sincere as both sides were serious about improving ties, but this was the first meeting (in a while) and there was a difference in view that we were not able to narrow," he said.

The North Korean officials demanded that South Korean navy vessels do not cross what it sees as the sea border. They also called for a stop to the release of the balloons carrying leaflets by the South Korean activists, Kim said.

North Korea has long criticized the leaflet drops as provocative and it had threatened to respond to them with force. But before Friday, it had never done so.

North Korea's state media said on Saturday that expected talks with the South to try to improve ties were in danger of being canceled because authorities in South Korea had allowed the activists to float their balloons.

South Korea says it has no legal justification to stop the activities of private groups, but it has urged them against sending the leaflets on safety grounds.

North Korea sent a high-level delegation to the South on Oct. 4 and agreed to resume dialogue that was suspended in February, raising hopes of a breakthrough in relations.

South Korea on Wednesday proposed Oct. 30 for a meeting to discuss allowing reunions of families separated during the Korean War, and to discuss sanctions on North Korea imposed after clashes in 2010 that killed soldiers and civilians in the South.

North Korea, heavily sanctioned by the United Nations for its missile and nuclear tests, is technically still at war with the South after the 1950-53 Korean War ended in a truce, not a peace treaty.

(Reporting by Jack Kim; Editing by Tony Munroe and Robert Birsel)



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TOP NEWS Bank of America moves past worst legal costs, posts loss

By Peter Rudegeair and Tanya Agrawal

(Reuters) - Bank of America Corp (BAC.N) said on Wednesday that it has moved past the worst of its legal settlements linked to the financial crisis, after its latest big legal charge brought the bank's common shareholders a net loss for the third quarter.

Since 2010, the second-largest U.S. bank has agreed to pay at least $70 billion to resolve disputes linked to home loans, mortgage bonds and other problems stemming from before and during the crisis.

In the most recent settlement, the bank paid $16.65 billion to resolve Department of Justice charges that it misled investors in its mortgage bonds.

Money was already set aside to cover most of that, but the bank took a $5.6 billion charge in the third quarter to cover the rest.

"The DoJ settlement from everything we can see was the most significant matter that's out there," Chief Financial Officer Bruce Thompson told reporters, signaling that investors can stop fearing outsized legal settlements every quarter.

Investors have wondered when the settlements would stop.

Chief Executive Brian Moynihan, who added the role of chairman in October, has been working to resolve legal and regulatory woes since he took over in 2010.

Four of the bank's five main businesses were profitable. Mortgages, where it booked the settlement charge, were the exception.

"While it was a messy quarter, core results look okay," Citigroup analyst Keith Horowitz wrote in a note to investors.

Bank of America's shares fell 5.6 percent as the broader stock market dropped.

The bank is the fourth of the six major U.S. banks to report third-quarter results. JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N) were also hit by big legal expenses.

Bank of America posted a net loss attributable to shareholders of $70 million, or 1 cent per share, for the three months ended Sept. 30, compared with a year-earlier profit of $2.22 billion, or 20 cents per share.

Net income before preferred stock dividends fell to $168 million from $2.5 billion.

The bank lost 3 cents per share on an adjusted basis, according to a calculation by Thomson Reuters I/B/E/S. Analysts on average had expected a loss of 9 cents per share.

TRADING REVENUE RISES

Total revenue slipped 1.5 percent to $21.21 billion while expenses excluding legal costs were down 7 percent compared to the same period a year earlier.

Bond trading revenue, excluding accounting adjustments, rose 11 percent to $2.2 billion as market activity picked up in September, exceeding the increase that rivals have posted.

Profit from wealth and investment management rose 12.9 percent to a record $813 million. Global banking and sales and trading units achieved profit growth of over 20 percent.

(Reporting by Peter Rudegeair in New York and Tanya Agrawal in Bangalore; Editing By Ted Kerr, Dan Wilchins, and David Gregorio)



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TOP NEWS Time Warner to launch HBO as streaming broadband service

By Jennifer Saba

NEW YORK (Reuters) - Time Warner Inc's HBO will launch a standalone online streaming service next year to make hit shows such as "Game of Thrones" available to people who do not subscribe to cable television.

The move to take HBO "over-the-top" - media jargon that means consumers can watch the channel with only a broadband connection - is a significant milestone for a channel long dependent on cable distributors.

It could be a further catalyst spurring more people to dump their cable subscriptions by cutting the cord.

HBO's chief executive, Richard Plepler, announced the move during an investor day on Wednesday where Time Warner's other top executives laid out plans to boost the company's growth.

Plepler cited that 10 million homes in the United States are broadband-only, without cable subscriptions. Half of those homes subscribe to streaming video services. "These consumers have no access to HBO. It's a large opportunity that should not be untapped," he said.

Shares of Time Warner, also home to movie studio Warner Bros and cable network channels Turner Broadcasting, were up 1.4 percent at $71.62 at midday on Wednesday.

Netflix Inc shares were down 3.1 percent at $435.28 after the announcement. The streaming video company will announced its quarterly results later on Wednesday.

"In 2015 we will go beyond the wall and launch a standalone, over-the-top service with the potential to produce hundreds of millions in revenue," Plepler said, making a reference to HBO's massive hit show "Game of Thrones."

"We will use all means at our disposal to grow. This is the most exciting inflection point both domestically and internationally in the modern history of HBO."

Plepler did not disclose further details about the forthcoming service, including the price. HBO currently allows cable subscribers to access its content on mobile devices through an app known as HBO Go.

The decision to finally free HBO comes as Time Warner is under pressure to boost its share price after it rebuffed an $85 per share offer from Rupert Murdoch's Twenty-First Century Fox in August.

Earlier in the presentation, Time Warner Chief Executive Jeff Bewkes said the company forecast adjusted earnings per share of $6 by 2016 and $8 by 2018.

(Editing by Matthew Lewis)



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TOP NEWS U.S.-led air strikes intensify as Syria conflict destabilizes Turkey

 
By Humeyra Pamuk and Daren Butler

MURSITPINAR Turkey/ISTANBUL (Reuters) - American-led forces have sharply intensified air strikes in the past two days against Islamic State fighters threatening Kurds on Syria's Turkish border after the jihadists' advance began to destabilize Turkey.

The coalition had conducted 21 attacks on the militants near the Syrian Kurdish town of Kobani over Monday and Tuesday and appeared to have slowed Islamic State advances there, the U.S. military said, but cautioned the situation remained fluid.

U.S. President Barack Obama voiced deep concern on Tuesday about the situation in Kobani as well as in Iraq's Anbar province, which U.S. troops fought to secure during the Iraq war and is now at risk of being seized by Islamic State militants.

"Coalition air strikes will continue in both of these areas," Obama told military leaders from coalition partners including Turkey, Arab states and Western allies during a meeting outside Washington.

The fight against Islamic State will be among the items on the agenda when Obama holds a video conference on Wednesday with British, French, German and Italian leaders, the White House said.

War on the militants in Syria is threatening to unravel a delicate peace in neighboring Turkey where Kurds are furious with Ankara over its refusal to help protect their kin in Syria.

The plight of the Syrian Kurds in Kobani provoked riots among Turkey's 15 million Kurds last week in which at least 35 people were killed.

Turkish warplanes were reported to have attacked Kurdish rebel targets in southeast Turkey after the army said it had been attacked by the banned PKK Kurdish militant group, risking reigniting a three-decade conflict that killed 40,000 people before a ceasefire was declared two years ago.

Kurds inside Kobani said the U.S.-led strikes on Islamic State had helped, but that the militants, who have besieged the town for weeks, were still on the attack.

"Today there were air strikes throughout the day, which is a first. And sometimes we saw one plane carrying out two strikes, dropping two bombs at a time," said Abdulrahman Gok, a journalist with a local Kurdish paper who is inside the town.

"The strikes are still continuing," he said by telephone, as an explosion sounded in the background.

"In the afternoon, Islamic State intensified its shelling of the town," he said. "The fact that they're not conducting face-to-face, close-distance fight but instead shelling the town from afar is evidence that they have been pushed back a bit."

Asya Abdullah, co-chair of the dominant Kurdish political party in Syria, PYD, said the latest air strikes had been "extremely helpful". "They are hitting Islamic State targets hard and because of those strikes we were able to push back a little. They are still shelling the city center."

It was the largest number of air strikes on Kobani since the U.S.-led campaign in Syria began last month, the Pentagon said. The White House said the impact was constrained by the absence of forces on the ground but that evidence so far showed its strategy was succeeding.

CEASEFIRE THREATENED

The Turkish Kurds' anger and resulting unrest is a new source of turmoil in a region consumed by Iraqi and Syrian civil wars and an international campaign against Islamic State fighters.

The PKK accused Ankara of violating the ceasefire with the air strikes, on the eve of a deadline set by its jailed leader to salvage the peace process.

"For the first time in nearly two years, an air operation was carried out against our forces by the occupying Turkish Republic army," the PKK said. "These attacks against two guerrilla bases at Daglica violated the ceasefire," the PKK said, referring to an area near the border with Iraq.

Obama, who ordered the bombing campaign that started in August against Islamic State fighters, told the meeting of military leaders from 22 countries to expect a "long-term effort" in the battle against Islamic State militants.

"There will be days of progress and there are going to be some periods" of setbacks, he said.

A U.S. military official told Reuters after the talks there was an acknowledgement that Islamic State was making some gains on the ground, despite the air strikes. But there was also a sense that the coalition, working together, would ultimately prevail, the official said.

"In the short term, there are some gains that they have been able to make. In the long term, that momentum will be reversed," the official said, adding the coalition would adjust its tactics as Islamic State fighters increasingly blend into the population and become harder to target.

Washington has faced the difficult task of building a coalition to intervene in Syria and Iraq, two countries with complex multi-sided civil wars in which most of the nations of the Middle East have enemies and clients on the ground.

In particular, U.S. officials have expressed frustration at Turkey's refusal to help them fight against Islamic State. Washington has said Turkey has agreed to let it strike from Turkish air base. Ankara has said that is still under discussion.

NATO-member Turkey has refused to join the coalition unless it also confronts Syrian President Bashar al-Assad, a demand that Washington, which flies its air missions over Syria without objection from Assad, has so far rejected.

U.S. Secretary of State John Kerry said on Tuesday there was no discrepancy between Ankara and Washington over the strategy for fighting Islamic State in Kobani and that Ankara would define its role according to its own timetable.

The fate of Kobani, where the United Nations says thousands could be massacred, could wreck efforts by the Turkish government to end the insurgency by PKK militants, a conflict that largely ended with the start of a peace process in 2012.

The peace process with the Kurds is one of the main initiatives of President Tayyip Erdogan's decade in power, during which Turkey has enjoyed an economic boom underpinned by investor confidence in future stability.

The unrest shows the difficulty Turkey has had in designing a Syria policy. Turkey has already taken in 1.2 million refugees from Syria's three-year civil war, including 200,000 Kurds who fled the area around Kobani in recent weeks.

'PROVOCATIONS COULD BRING MASSACRE'

Jailed PKK co-founder Abdullah Ocalan has said peace talks between his group and the Turkish state could come to an end by Wednesday. After visiting him in jail last week, Ocalan's brother Mehmet quoted him as saying: "We will wait until October 15. ... After that there will be nothing we can do."

A pro-Kurdish party leader read out a statement from Ocalan in parliament on Tuesday in which the PKK leader said Kurdish parties should work with the government to end street violence.

"Otherwise we will open the way to provocations that could bring about a massacre," Ocalan said in the statement, which the party said he wrote last week.

Turkish attacks on Kurdish positions were once a regular occurrence in southeast Turkey but had not taken place for two years. The PKK said the strikes took place on Monday, although some Turkish news reports said they happened on Sunday.

Prime Minister Ahmet Davutoglu said the Turkish military had retaliated against a PKK attack in the border area, without referring specifically to air strikes.

Hurriyet newspaper said the air strikes caused "major damage" to the PKK. "F-16 and F-4 warplanes which took off from (bases in the southeastern provinces of) Diyarbakir and Malatya rained down bombs on PKK targets after they attacked a military outpost in the Daglica region," Hurriyet said.

'TOO LATE FOR US'

The battle for Kobani has ground on for nearly a month, although Kurdish fighters on Monday managed to replace an Islamic State flag in the West of the town with one of their own. The fighters, known as Popular Protection Units (YPG) want Turkey to allow them to bring arms across the border.

In the Turkish town of Suruc, 10 km (6 miles) from the Syrian frontier, a funeral for four female YPG fighters was being held. Hundreds at the cemetery chanted: "Murderer Erdogan".

At least six air strikes, gunfire and shelling could be heard from Mursitpinar on the Turkish side of the border on Tuesday, where Kurds, many with relatives fighting in Kobani, have maintained a vigil, watching the fighting from hillsides.

In Iraq, Kurdish forces and government troops have rolled back some Islamic State gains in the north of the country in recent weeks, but the fighters have advanced in the west, seizing territory in the Euphrates valley within striking distance of the capital, Baghdad.

Members of Iraq's Shi'ite minority have been targeted by recent bomb attacks in Baghdad, some claimed by Islamic State. On Tuesday, 25 people were killed by a car bomb, including a Shi'ite Muslim member of Iraq's parliament.

(Additional reporting by Jeff Mason, Steve Holland, Roberta Rampton and Phil Stewart in Washington; Writing by Peter Graff, Oliver Holmes and Philippa Fletcher; Editing by David Stamp, Toni Reinhold and Peter Cooney)



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TOP NEWS Hong Kong tycoon calls for protests to end after tension over police beating

 
By James Pomfret and Clare Jim

HONG KONG (Reuters) - Hong Kong's most prominent tycoon, Li Ka-shing, on Wednesday urged protesters who have occupied parts of the city since late last month to go home, after police mounted their toughest action against the democracy activists in more than a week.

Police arrested about 45 protesters in the early hours of Wednesday, using pepper spray against those who resisted, as they cleared a main road in the Chinese-controlled city that protesters had blocked with concrete slabs.

But footage of police beating a protester went viral, sparking outrage from some lawmakers and the public. Authorities said police involved in the beating would be suspended.

Outrage over the beating could galvanise support for the democracy movement in the city where the protests over Chinese restrictions on how it chooses its next leader had dwindled from about 100,000 at their peak to a few hundred.

Li, Asia's richest man and chairman of property developer Cheung Kong (Holdings) Ltd, had made no public comment on the protests but broke his silence to say if Hong Kong's rule of law broke down it would be the city's "greatest sorrow".

"Since the handover, the 'one country, two system' formula has protected Hong Kong's lifestyle," Li said, referring to the formula under which the city has been run since its return from British to Chinese rule in 1997.

"I urge everyone not to be agitated. I urge everyone not to let today's passion become the regret for tomorrow. I earnestly request everyone to return to their families," Li said in his first public comments on the protests.

"One country, two systems" allows wide-ranging autonomy and freedoms not enjoyed on the mainland and specifies universal suffrage for Hong Kong as an eventual goal.

But Beijing ruled on Aug. 31 it would screen candidates who want to run for the city's chief executive in 2017, which democracy activists said rendered the universal suffrage concept meaningless.

British Prime Minister David Cameron said Britain should stand up for the rights of Hong Kong people and it was important they were able to enjoy freedoms and rights set out in the agreement with China before Britain handed Hong Kong back.

Such calls are likely to compound Chinese suspicion about what one Chinese official in Hong Kong referred to earlier on Wednesday as interference from outside forces.

"We hope the outside world will respect one country, two systems, will respect the Hong Kong ... government to deal with the situation in accordance with the law and does not send any wrong signal to this unlawful activity," the official told foreign reporters, adding that foreign media should cover the protests "objectively".

Earlier, Hong Kong Secretary for Security Lai Tung-kwok told a news conference police would investigate the beating of the protester after he was dragged into a dark corner next to the protest site police were trying to clear.

Several officers appeared to beat and kick a handcuffed protester for several minutes in footage aired by television broadcaster TVB.

Alan Leong, leader of the pro-democracy Civic Party, identified the person in the video as party member Ken Tsang Kin-chiu.

Civic Party legislator Dennis Kwok, a lawyer representing Tsang, said police also beat Tsang in a police station. Tsang was later taken to hospital, he said, and activists released photographs showing bruising on his face and body.

Police, without referring to Tsang, said in a statement they had used minimum force, including pepper spray, to disperse protesters who had gathered illegally.

The situation was calm through the rest of Wednesday. More than 100 people marched to police headquarters close to the main protest site to condemn the beating of Tsang.

'ENOUGH CONCESSIONS'

The altercation came after demonstrators swarmed into a tunnel on a four-lane thoroughfare late on Tuesday, halting traffic and chanting for universal suffrage.

"There were so many police. They punched people ... We are peaceful," a distraught student, Danny Chiu, told Reuters.

The tunnel in the Admiralty district near government headquarters was reopened after police cleared away barriers of concrete slabs.

The protesters are also calling for its pro-Beijing leader, Leung Chun-ying, to step down. But their campaign has caused traffic chaos and drained public support.

Leung said this week there was "zero chance" China's leaders would give in to protesters' demands and change the August decision limiting democracy. He postponed a question-and-answer session on Thursday due to what he called security risks.

China's ruling Communist Party believes it has offered enough concessions to Hong Kong in the past, and would give no ground because it wants to avoid setting a precedent for reform on the mainland, sources told Reuters.

The position was arrived at during a meeting of the new National Security Commission chaired by President Xi Jinping in the first week of October, the sources said.

On Tuesday, police used chainsaws and sledge-hammers to clear blockades on another major road in Admiralty, next to the Central business district. Hundreds of protesters then stormed into the nearby tunnel.

Despite the reopening of the two major roads there was no immediate sign the core protest zone outside government headquarters, where hundreds of tents remain pitched on a highway, would be cleared. Protesters are also in smaller groups in other parts of the city.

Police, criticised for using tear gas and batons in the first 24 hours of the protests, had adopted a more patient approach, counting on protesters to come under public pressure to clear main arteries. In recent days, police have selectively removed some barriers on the fringes of protest sites.

The police action early on Wednesday, however, suggested official patience may be wearing thin.

(Additional reporting by Donny Kwok, Yimou Lee, Amanda Lee and Farah Master in HONG KONG and Benjamin Kang Lim and Ben Blanchard in BEIJING; Writing by Dean Yates; Editing by Robert Birsel)



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TOP NEWS U.S. retail sales, producer prices give cautionary signs on economy

By Jason Lange

WASHINGTON (Reuters) - U.S. retail sales declined in September and producer prices also fell, worrisome signals on the economy's health that heightened financial market worries over faltering global growth.

The two reports on Wednesday could deepen concerns at the Federal Reserve over the readiness of the U.S. economy to absorb a hike in interest rates that many policymakers have said would likely come around the middle of next year.

Retail sales, which account for about one-third of consumer spending, dropped 0.3 percent last month after a 0.6 percent gain in August, the Commerce Department said. It was the first decrease since January.

Economists had expected a decline given a slower pace of sales reported by automakers and a drop in gasoline prices that would have cut into receipts at service stations.

But what came as a surprise was that the weakness was so broad-based. A gauge of so-called core sales, which strips out automobiles, gasoline, building materials and food services, and corresponds most closely with the consumer spending component of gross domestic product, fell 0.2 percent. Economists polled by Reuters had expected it to rise.

"Consumers have turned more cautious," said Ted Wieseman, an economist at Morgan Stanley in New York, who cut his third-quarter GDP growth forecast to 3.1 percent from 3.4 percent on the figures. 

Prices for U.S. stocks dropped about 1 percent and yields on U.S. government debt fell sharply.

The United States had looked like a bright spot in a slowing global economy, but Wednesday's data took away some of that shine.

Sales at clothing retailers dropped 1.2 percent and receipts at sporting goods shops edged 0.1 percent lower. Overall sales would have fallen further but for the release of a new version of Apple's (AAPL.O) flagship cellular phone, which helped sales at electronics and appliance stores rise 3.4 percent.

Receipts at auto dealerships fell 0.8 percent, as did sales at service stations. The drop in gasoline sales reflected declining oil prices and is potentially positive for the broader economy as it could free up income to spend on other things.

Separately, the Labor Department said prices received by U.S. producers fell 0.1 percent in September, the first decline in over a year.

While many indicators have pointed to a strengthening U.S. economy, policymakers at the Federal Reserve are concerned that inflation has been stuck below their 2 percent target.

The Fed targets inflation felt by consumers, but the producer price report can point to inflation pressures down the road. And Wednesday's report suggests these are generally lacking. "Little inflation pressure (is) in the pipeline," economists at RBS said in a note to clients.

Producer prices rose 1.6 percent in the year through September, the lowest annual reading in six months and down two tenths from August's print. A third report showed U.S. business inventories in August posted their smallest gain since June 2013.

(Reporting by Jason Lange; Editing by Andrea Ricci and Meredith Mazzilli)



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TOP NEWS Second Texas nurse with Ebola had traveled by plane

By Lisa Maria Garza and Terry Wade

DALLAS (Reuters) - A second Texas nurse who tested positive for Ebola after caring for a patient with the virus had traveled by jetliner a day before she reported symptoms, U.S. and airline officials said on Wednesday.

The worker at Texas Health Presbyterian Hospital in Dallas had taken a Frontier Airlines flight from Cleveland, Ohio to Dallas/Fort Worth International Airport on Monday, the officials said.

The woman, identified to Reuters by her grandmother as Amber Vinson, 29, was isolated immediately after reporting a fever on Tuesday, Texas Department of State Health Services officials said. She had treated Liberian patient Thomas Eric Duncan, who died of Ebola and was the first patient diagnosed with the virus in the United States.

The circumstances under which Vinson traveled were not immediately known. But the latest revelation raised fresh questions about the handling of Duncan's case and its aftermath by both the hospital and the U.S. Centers for Disease Control and Prevention (CDC).

At least 4,447 people have died in West Africa in the worst Ebola outbreak since the disease was identified in 1976, but cases in the United States and Europe have been limited. The virus can cause fever, bleeding, vomiting and diarrhea, and spreads through contact with bodily fluids.

"Health officials have interviewed the latest patient to quickly identify any contacts or potential exposures, and those people will be monitored," the health department said in a statement.

During the weekend, 26-year-old nurse Nina Pham became the first person to be infected with Ebola in the United States. She had cared for Duncan during much of his 11 days in the hospital. He died in an isolation ward on Oct. 8.

The hospital said on Tuesday that Pham was "in good condition."

News of the second nurse's diagnosis follows criticism of the hospital's nurses of its initial handling of the diseases, in a statement Tuesday by National Nurses United, which is both a union and a professional association for U.S. nurses.

The nurses said the hospital lacked protocols to deal with an Ebola patient, offered no advance training and provided them with insufficient gear, including non-impermeable gowns, gloves with no taping around wrists and suits that left their necks exposed.

'PILED TO THE CEILING'

Basic principles of infection control were violated by both the hospital's Infectious Disease Department and CDC officials, the nurses said, with no one picking up hazardous waste "as it piled to the ceiling."

"The nurses strongly feel unsupported, unprepared, lied to, and deserted to handle the situation on their own," the statement said.

The hospital said in a statement it had instituted measures to create a safe working environment and it was reviewing and responding to the nurses' criticisms.

Speaking early Wednesday on CBS "This Morning," U.S. Health and Human Services Secretary Sylvia Burwell declined to comment on the nurses' allegations.

Dallas Mayor Mike Rawlings said at a news conference Wednesday that the second infected nurse lived alone and had no pets.

He said local health officials moved quickly to clean affected areas and to alert her neighbors and friends. A decontamination could be seen taking place at her residence.

EARLY WAKEUP

Residents at The Bend East in the Village apartment complex were awoken early Wednesday by text messages from property managers saying a neighbor had tested positive for Ebola, and pamphlets had been stuffed beneath doors and left under doormats, said a resident, who asked not to be named.

Other residents were concerned enough that they were limiting time spent outdoors.

"Everybody thinks this won't happen because we are in the United States. But it is happening," said Esmeralda Lazalde, who lives about a mile from where the first nurse who contracted Ebola resides.

Texas Health Presbyterian Hospital is doing everything it can to contain the virus, said Dr. Daniel Varga of Texas Health Resources, which owns the hospital. "I don't think we have a systematic institutional problem," he said at a news conference on Wednesday.

At the same briefing, Dallas County Judge Clay Jenkins, the county's chief political officer, said authorities were anticipating additional possible Ebola cases.

"We are preparing contingencies for more, and that is a very real possibility," Jenkins said.

The CDC said in a statement that it was performing confirmation testing of Texas' preliminary tests on the new patient.

CDC Director Dr. Thomas Frieden said Tuesday the agency was establishing a rapid-response team to help hospitals "hands on, within hours" whenever there is a confirmed case of Ebola.

Frieden has come under pressure over the response and preparedness for Ebola, but White House spokesman Josh Earnest said U.S. President Barack Obama was confident of Frieden's ability to lead the public health effort.

REINFORCEMENTS

Burwell, in a series of television interviews on Wednesday, said officials were adding staff to ensure the hospital in Dallas followed procedures to prevent transmission of the virus.

She said there would be round-the-clock site managers to oversee how healthcare workers put on and remove the protective gear used when treating Ebola patients.

In addition to extra CDC staff on site, two nurses from Emory University, in Atlanta, which has a specialized hospital that has treated other Ebola patients flown in from West Africa, were in Dallas to train staff.

Obama was due to hold a video conference Wednesday with British, French, German and Italian leaders to discuss Ebola and other international issues, the White House said.

Prospects for a quick end to the contagion diminished as the World Health Organization predicted that Liberia, Sierra Leone and Guinea, the three worst-hit countries, could produce as many as 10,000 new cases a week by early December.

(Additional reporting by Jim Forsyth in San Antonio, Susan Heavey and Doina Chiacu in Washington D.C. and Jon Herskovitz in Austin, Texas; Writing by Jonathan Kaminsky and Curtis Skinner; Editing by Mohammad Zargham, Doina Chiacu, Bernadette Baum and Jonathan Oatis)



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TECHNOLOGY NEWS: How Samsung approaches Accessibility

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Accessibility

 

Accessibility is an inherent right, so that people with disabilities can live independently and participate fully in all aspects of life; that's how the United Nations General Assembly defines it, and that's what we at Samsung are committed to.  We want to ensure that accessibility is factored into all of our products, so no matter who you are, you'll be able to live how you want.

In many countries around the world, you can find raised yellow paving, which alerts visually impaired pedestrians to potential obstacles.

They provide accessibility, as part of the social agreement to provide equal opportunities for all.

How Samsung approaches Accessibility

Samsung builds accessibility into all of its devices, so that they are accessible to everyone, regardless of any physical impairment.

Larger screens and enhanced picture quality on Samsung smartphones help the visually impaired communicate sign language with greater accuracy.

Voice recognition on Samsung Smart TVs allows them to easily operate their TVs with voice commands.

Samsung refrigerator doors require minimal strength to open and close, which is ideal for the elderly and people with disabilities.   

Out of 7.2 billion people around the world, about 1 billion, or 14%, have disabilities. This is equivalent to the total population of Africa, or almost all of China or India. It is imperative that Samsung does whatever we can to make out products accessible for everyone – whether they are visually or mobility impaired – so that they can enjoy the full user experience. 

"Think of disability simply as a different form of sensory experience. This will allow you to focus on the things they haven't been able to enjoy as a consumer, instead of focusing on doing more for them because of disability." (Consumer Interview)

"Products exclusively designed for people with disabilities are not preferred by those with disabilities. These products make them feel discriminated. Allowing products to be more accessible for everyone regardless of disabilities is the key." (Consumer Interview)



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TECHNOLOGY NEWS: Galaxy Note 4 Hands-on: Are you ‘Note’ entertained?

Is this not why you're here?!

If you thought we were just going to unbox the Galaxy Note 4 and leave it at that, you overestimated our restraint. Of course, we are going to play with the Galaxy Note 4 to see if it is really maximus! While we were at it, we decided take a hands-on video of the Galaxy Note 4, so you have a chance to get cozy with it before it is on the shelves in all 140 countries. Here is how it went.

Design of the Galaxy Note 4

If you are familiar with the Galaxy series, you might have noticed that the design of Galaxy Note 4 is consistent with the design identity of its predecessors. After all, this device is the 4th generation of one of Samsung's flagship models – staying true to our history was important.

Obviously, it is hard to take your eyes off of the 5.7-inch Quad HD Super AMOLED display, which is four times the resolution of HD (2560×1440 pixels). Once you turn it on, you will notice the superior display quality. The display of the Galaxy Note 4 is also 2.5D glass, which means it's clearer and brighter.

The home button has a Finger Scanner for better security, if you wish to use it. Or if you are not a fan of memorizing passwords or patterns, this can come handy. On the front, you can see all the basic components of a smartphone, such as the front camera, RGB ambient light, proximity, and gesture sensors, and speaker.

The frame on the side may seem different from previous Galaxy Note devices. Two words: Metal Frame. That's right; the Galaxy Note 4 features a metal frame like the Galaxy Alpha. Note that.

The power button is on the right side. IR LED, 3.5mm standard earphone jack, and mic are on top. A volume rocker control is on the left side. The elegantly curved bottom houses 2 mics, a micro USB port and… the S Pen!

Now, if you flip the Galaxy Note 4 over, you may have noticed that there is no more stitch pattern, which its predecessor had. The speaker, rear camera, flash, UV and HRM sensors are located on the back as well. Speaking of sensors, the Galaxy Note 4 features accelerometer, a gyroscope, a geo-magnetic sensor, barometer, and hall sensor hidden inside the body.

The Advanced S Pen

Since we are talking about Galaxy Note series, we have to talk about the S Pen. It is what sets Galaxy Note 4 apart from other phablets. As you might have heard, the sensitivity has been doubled from 1,024 levels to 2,048. This enhanced sensitivity of the S Pen can distinguish the slightest nuances in writing and press sensitivity. The new S Pen drastically improves the overall experience. You have to try this out to really feel the smoothness.

Also, some of the S Pen button gestures are highlighted. For example, on the in-apps like Gallery or My Files, you can just drag and select the files you want with the S Pen button pressed. You can also drag and highlight text, just like the mouse does on a PC. You can already imagine that this will increase productivity and usability of the large screen like no other.

Now, to one of the coolest features of the S Pen, the "Smart select" feature. With this feature, there is no need to copy and paste the text or images one at a time; do it all at once. By using Smart Select, the content will be clipped temporarily for you to share easily whenever and wherever you want. This is how you do it.

1. Hover your S Pen and press the S Pen button to call 'Air Command,' select "Smart Select," and choose the content you want to save:

2. You can choose whatever's on the screen, and you can also go through different apps to collect different items.

3. The items you've collected will be temporarily stored together. Text is automatically detected and extractable.

3. Share them on messenger apps, send emails, etc.

The New Multi window

What is the use of the big screen if you cannot multitask with it? By the way, going back and forth through apps that are running but not seen isn't really multitasking. This is how the new Multi Window of the Galaxy Note 4 lets you multitask.

While running an app, just drag down a corner to re-size it into a Pop up. You can resize it, place it anywhere and it will stay. You can also bring recently used apps onto the screen as a popup window.

If even this is too big, touch the circle on top and reduce it to a floating Icon. Tap to bring it back. You can also just turn it off.

You can choose to run your app on Full View by taking the center bar to the top, or dock a second app there and use it in split-screen. Of course, you can hold the back button to call up your Multi Window drawer and drag your second app into Split View, like you used to on previous Galaxy devices.

Easily drag and drop while you go between the tasks that need to be done simultaneously. Yes, you can also go back and forth through apps, but sometimes you just need to use them at the same time. The New Multi Window does that for you

Adaptive Fast Charge

With the Galaxy Note 4, battery life will rarely be an issue. Samsung not only upped the battery capacity to 3220mAh, but we also introduced Fast Charge to Galaxy Note 4. It charges about 30% faster.

Also, if you're running low despite the Fast Charge, you can turn to Ultra Saving Mode; a smash hit with Galaxy S5. It shuts down operations except for the absolutely necessary ones, which you can customize to an extent, and shows you how long you have left.

Remember the days before smartphones, when cellphone batteries used to last days? Well, it's sort of like that.

The Camera Features

Now, let's go over one of the most important features of smartphones these days, the camera.

First, the front camera. Tired of blurry or relatively lower quality selfies? Thought so. Galaxy Note 4 features a 3.7 MP front-facing camera with a brighter F1.9 lens for brighter, more visible captures. This will receive 60% more light than a same camera with a F2.4 lens.

There is no more need to suffer sore arms from stretching your arm to an impossible length just to get everyone in the selfie. The front-facing camera's angle has been improved to 90 degrees from the previous 77. Or you can just use the new feature called the 'Wide Selfie', which is like a Panorama mode for selfies. Yes, we said panorama selfie!

That isn't all! You might already know about virtual shutter button or a timer. Did you know that you could use the heartbeat sensor or use your voice to trigger a shot? You no more need to worry about shaking the phone camera on your already outstretched and shaking arm.

On the back, the 16MP rear camera now features Smart Optical Image Stabilization, or OIS, to reduce dark and blurry pictures or shaky videos. You can also record video in Ultra High Definition (UHD) so you can play it back crystal clear and in full glory on your UHD TV. UHD, that's 3840 x 2160! Don't you already want to just go out and take some pictures with the Galaxy Note 4?

So, are you not entertained? That was our hands-on of the Galaxy Note 4. We definitely enjoyed playing around with the Galaxy Note 4. How could we not? What do you think? Will you enjoy it as much as we did as well? Let us know in the comments below.

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