Monday, 15 September 2014

TOP NEWS U.S. sees Middle East help fighting IS, Britain cautious after beheading

WASHINGTON/LONDON (Reuters) - Washington said countries in the Middle East had offered to join air strikes against Islamic State militants and Australia said it would send troops, but Britain held back even after the group beheaded a British hostage and threatened to kill another.

U.S. Secretary of State John Kerry has been touring the Middle East to try to secure backing for U.S. efforts to build a coalition to fight the Islamic State militants who have grabbed territory in Syria and Iraq.

The United States resumed air strikes in Iraq in August for the first time since the 2011 withdrawal of the last U.S. troops, fearful the militants would break the country up and use it as a base for attacks on the West.

The addition of Arab fighter jets would greatly strengthen the credibility of what is a risky and complicated campaign.

"We have countries in this region, countries outside of this region, in addition to the United States, all of whom are prepared to engage in military assistance, in actual strikes if that is what it requires," Kerry said.

"And we also have a growing number of people who are prepared to do all the other things," he said in remarks broadcast on Sunday on the CBS program "Face the Nation."

Offers of Arab air participation have been made both to U.S. Central Command overseeing the American air campaign and to the Iraqi government, a senior State Department official said.

The official said the offers were not limited to air strikes on Iraq. "Some have indicated for quite a while a willingness to do them elsewhere," the official said. "We have to sort through all of that because you can't just go and bomb something."

As of Saturday, U.S. fighter jets had conducted 160 air strikes on Islamic State positions in Iraq. The United States will present a legal case before expanding them into Syria, U.S. officials said, justifying them largely on the basis of defending Iraq from militants who have taken shelter in neighboring Syria during its three-year civil war.

Australia became the first country to detail troop numbers and aircraft to fight the militants in Iraq. It said it would send a 600-strong force and eight fighter jets to the region but did not intend to operate in Syria.

Russia, at odds with the West over Ukraine, has said any air strikes in Syria would be an act of aggression without the consent of President Bashar al-Assad or an international mandate.

Britain has often been the first country to join U.S. military action overseas and is under pressure to get much tougher with IS after video footage of the killing of Briton David Haines by the militants was released on Saturday.

In footage consistent with the filmed executions of two American journalists, James Foley and Steven Sotloff, in the past month, they also threatened to kill another British hostage.

Speaking after chairing a meeting of the government's emergency response committee in London, Prime Minister David Cameron called the killing of Haines, a 44 year-old Scottish aid worker, callous and brutal and hailed him as a "British hero."

"We will hunt down those responsible and bring them to justice no matter how long it takes," he said, calling IS "the embodiment of evil" and saying his government was prepared "to take whatever steps are necessary" against the militants.

SUNNI 'ANVIL'

But he did not announce any air strikes, mindful of war-weary public opinion, parliament's rejection last year of air strikes on Syria, and sensitivities surrounding Scotland's independence referendum on Thursday.

U.S. allies are skeptical of how far Washington will commit to a conflict in which nearly every country in the region has a stake, set against the backdrop of Islam's 1,300-year-old rift between Sunnis and Shi'ites.

Many fear there is not enough emphasis on ensuring the Iraqi government is strong and united enough to overcome sectarian divisions and run the country effectively after any intervention.

Britain and the United States have ruled out sending ground troops back into Iraq and Kerry did not say which countries had offered.

"We're not looking to put troops on the ground," he said. "There are some who have offered to do so, but we are not looking for that at this moment anyway."

On the CNN program "State of the Union," White House Chief of Staff Denis McDonough was asked if the coalition would need ground troops beyond opposition forces in Syria and Kurdish and government forces in Iraq.

"Ultimately to destroy ISIL we do need to have a force, an anvil against which they will be pushed - ideally Sunni forces," he said, using an acronym for Islamic State.

'EXTREMELY ENCOURAGED'

On Thursday, Kerry won the backing for a "coordinated military campaign" from 10 Arab countries - Egypt, Iraq, Jordan, Lebanon and six Gulf states including rich rivals Saudi Arabia and Qatar.

"This is a strategy coming together as the coalition comes together and the countries declare what they are prepared to do," Kerry said in the interview, taped on Saturday in Egypt.

"I've been extremely encouraged to hear from all of the people that I've been meeting with about their readiness and willingness to participate," Kerry added.

France has offered to take part in air strikes in Iraq and is expected to give more details this week on what it is willing to do, although its financial resources and forces are already stretched with more than 5,000 soldiers in West Africa.

Michael McCaul, a Republican who chairs the House of Representatives Committee on Homeland Security, told the same CBS program that Prince Ali bin Al Hussein of Jordan told him "he is ready to put his troops into Syria to fight ISIS".

Washington could also try to persuade Egypt to put troops in Syria," McCaul said.

John Kerry will meet British Foreign Secretary Philip Hammond during a conference on Iraq in Paris on Monday. The conference brings Iraqi authorities together with about 30 countries and organizations to coordinate their response to Islamic State.

"It will also be the first time to really gauge what Russia thinks and is ready to do," a French diplomat said.

The diplomat said Syria was a different case.

"The situation is not the same either legally or militarily. We do not want to strengthen Assad, so we have to be sure that strikes there don't do that," the diplomat said. "We are ready to help Iraq's government, which has asked for our help, but not Assad's dictatorship."

(Additional reporting by Jason Szep and John Irish in Paris, Timothy Gardner in Washington, Morag MacKinnon in Perth, Australia and William Maclean in Dubai; Writing by Philippa Fletcher; Editing by Anna Willard, Peter Cooney and Mohammad Zargham)

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Sunday, 14 September 2014

TECHNOLOGY Hachette writers plan to appeal directly to Amazon's board: NYT

(Reuters) - Writers published by Hachette Book Group and their allies are planning to appeal directly to the board of Amazon.com Inc to find a way out of the impasse over e-book prices, the New York Times reported.



The writers have been at the receiving end of a dispute, which has seen Amazon delay deliveries and cut discounts on some books published by Hachette, the fourth-largest U.S. book publisher owned by France's Lagardere.



Authors United, a group of Hachette writers and their allies, is warning the Amazon's board that the reputation of the retailer, and of the directors themselves, is at risk, the report said. (http://nyti.ms/1BEPbFx)



The 1,100-member group has time until Wednesday to sign a letter, which warns the directors of the disrepute Amazon's treatment of the literary community is bringing to the company, the daily reported.



The letter follows an ad in The New York Times last month that asked readers to email Amazon's CEO Jeff Bezos and ask him to relent.



Amazon last month asked readers to help in its running dispute by emailing Hachette's CEO.



Amazon says pricing e-books at $14.99 or $19.99 is too expensive and unjustifiable in most cases. It argues that lower-priced e-books sell more and so ultimately generate more revenue, and more royalties for authors.



Representatives of Authors United were not immediately available for comment.



(Reporting by Arnab Sen in Bangalore; Editing by Gopakumar Warrier)





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POLITICAL NEWS Liberal Vermont Senator Sanders may seek U.S. presidency in 2016

WASHINGTON (Reuters) - Bernie Sanders, one of the Senate's leading liberals, said on Sunday he is thinking about running for U.S. president in 2016 as either a Democrat or an independent in a move that could complicate Hillary Clinton's path to the White House.

Sanders, an independent from Vermont, could pose a challenge from the left to Clinton, widely seen as the front-runner for the Democratic presidential nomination. She has not officially said she is a candidate but has acted very much like one.

"I think anybody who speaks to the needs of the working class and the middle class of this country and shows the courage to take on the billionaire class, I think that candidate will do pretty well," Sanders told the NBC program "Meet the Press," giving a possible preview of his message in the 2016 campaign.

Sanders is serving his second six-year term in the Senate. He has cultivated a following among some American liberals, especially on economic issues like the growing income disparity between rich and poor and corporate greed. He is a self-described socialist who caucuses with Democrats in the Senate.

"I am thinking about running for president," Sanders said, adding that he must decide whether to run as an independent or wade into the fight for the Democratic nomination.

Sanders is testing the waters in Iowa, a state that holds an important early contest in the nomination process.

"One of the reasons I'm going to Iowa is to get a sense of how people feel about it," he said of his candidacy. "Look, the truth is (there is) profound anger at both political parties, more and more people are becoming independent. The negative is: how do you set up a 50-state infrastructure as an independent?"

Sanders said he has "a lot of respect" for Clinton, but said, "The issue is not Hillary."

With Clinton mindful of the need to appeal to moderates in any general election battle against a Republican in 2016, a Sanders candidacy could force her to the left in the Democratic primaries to head off his challenge.

Conversely, if he runs in the general election as an independent, he could siphon away from her votes from liberals that she could need to beat any Republican nominee.

American liberals have expressed disappointment with President Barack Obama on a range of issues, most recently on his decision to postpone any executive action on immigration even as Republican leaders in the House of Representatives block action on a bipartisan Senate-passed plan.

Sanders said that he has "a lot of disagreements" with Obama, adding: "I think he has not tapped the anger and the frustration that the American people feel on many, many issues."

(Reporting by Will Dunham; Editing by Caren Bohan)



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TECHNOLOGY Alibaba worried about Facebook IPO as considered Nasdaq versus NYSE

(Reuters) - Alibaba Group Holding Ltd could have sold nearly $2 billion worth of stock without lifting a finger. All it had to do was list its shares on Nasdaq.

That listing would have guaranteed Alibaba inclusion in the Nasdaq 100 Index by the end of the year, and funds which track the index would have had to buy.

But two sources familiar with the situation said Alibaba executives worried about Nasdaq's ability to handle their $21 billion initial public offering later this month, since the exchange botched Facebook's market debut two years ago. 

Nasdaq tried to persuade Alibaba that it had fixed the problem, the sources said, but it is not clear whether they were swayed. 

One of the sources said that Alibaba eventually was satisfied that Nasdaq had solved the issue and chose NYSE because its overall pitch was better. The other said Nasdaq executives believed that Alibaba decided that the possibility of a botched IPO, however small, outweighed the possible benefits of being in the index.

Alibaba and NYSE declined to comment, while a spokesman for Nasdaq, which has repeatedly said it has fixed the issues that went wrong in the Facebook IPO, said "It was a close race, and we wish Alibaba well."

Alibaba's misgivings about Nasdaq's technology, two years after Facebook's glitch-ridden, $16 billion market debut, show the incident continues to threaten Nasdaq's reputation.

Listings contributed only 12 percent of Nasdaq's $1.9 billion in revenues in 2013, and large listings such as Alibaba's are less profitable for exchanges, but within the financial community they are taken as a barometer of success.

Nasdaq systems buckled under the tremendous volume of orders on the first day of trading in Facebook's shares in 2012, leading to hours of delay.

In its presentation to Alibaba, Nasdaq detailed the steps it had taken to prevent another Facebook-style glitch, two sources familiar with the pitch said. The exchange has said it responded to Facebook by putting extra safeguards in place, creating new positions within the company to improve communications with the industry and regulators when errors occur, and establishing an engineering team to monitor and analyze daily performance.

       

INDEX FUND BEDROCK

The decision not to go with Nasdaq meant that Alibaba may not join any major global index this year.

"There is a pretty strong argument that index inclusion equals stability," Kevin Landis, chief investment officer of Firsthand Capital Management, a Silicon-Valley-based technology-investing specialist with $400 million in assets under management.

ETFs and mutual funds that track such benchmarks have to buy and hold their stock.

The Nasdaq 100, which includes companies such as Apple and Google, has a market capitalization of $4.75 trillion. Funds such as the $46.8 billion QQQ PowerShares exchange-traded fund, the fifth-biggest ETF in the world, track the Nasdaq 100, according to data from Thomson Reuters' Lipper service.

If the IPO values the company at $200 billion, Alibaba would have been about 3.3 percent of the index. There are more than $54 billion in ETF assets alone linked to the index, which means at least $1.7 billion would have flown into Alibaba shares.

The chance to get on Nasdaq 100 was a selling point for Facebook itself. In the lead-up to the Facebook IPO, Nasdaq reduced the amount of time a qualifying firm needs to be listed on Nasdaq in order to be added in the index to three months from a year.

Alibaba doesn't qualify to be on many of the world's major indices, since it is registered in the Cayman Islands. The behemoth S&P 500 Index, which has a market capitalization of $18.6 trillion, only lists U.S. companies.

The Chinese firm is not eligible to be part of the biggest MSCI or FTSE indices for other reasons, although MSCI is looking at changing its index rules in a way that could put Alibaba on a major index.

And finally, Alibaba gave up a chance for mainland Chinese to invest, since China-based money manager Guotai Asset Management's Guotai Nasdaq 100 Index trades on the Shanghai Stock Exchange.

"It falls into this no man's land of indexing," said Dennis Hudachek, a senior ETF specialist with ETF.com, an expert on exchange-traded funds.

(Editing by Paritosh Bansal and Peter Henderson)



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TOP NEWS U.S. sees Middle East help fighting IS, Britain cautious after beheading

WASHINGTON/LONDON (Reuters) - Washington said countries in the Middle East had offered to join air strikes against Islamic State militants and Australia said it would send troops, but Britain held back even after the group beheaded a British hostage and threatened to kill another.

U.S. Secretary of State John Kerry has been touring the Middle East to try to secure backing for U.S. efforts to build a coalition to fight the Islamic State militants who have grabbed territory in Syria and Iraq.

The United States resumed air strikes in Iraq in August for the first time since the 2011 withdrawal of the last U.S. troops, fearful the militants would break the country up and use it as a base for attacks on the West.

The addition of Arab fighter jets would greatly strengthen the credibility of what is a risky and complicated campaign.

"We have countries in this region, countries outside of this region, in addition to the United States, all of whom are prepared to engage in military assistance, in actual strikes if that is what it requires," Kerry said.

"And we also have a growing number of people who are prepared to do all the other things," he said in remarks broadcast on Sunday on the CBS program "Face the Nation".

Australia became the first country to detail troop numbers and aircraft to fight the militants in Iraq. It said it would send a 600 strong force and eight fighter jets to the region but did not intend to operate in Syria.

Russia, at odds with the West over Ukraine, has said any air strikes in Syria would be an act of aggression without the consent of President Bashar al-Assad or an international mandate.

Britain has often been the first country to join U.S. military action overseas and is under pressure to get much tougher with IS after video footage of the killing of Briton David Haines by IS militants was released on Saturday.

In footage consistent with the filmed executions of two American journalists, James Foley and Steven Sotloff, in the past month, they also threatened to kill another British hostage.

Speaking after chairing a meeting of the government's emergency response committee in London, Prime Minister David Cameron called the killing of Haines, a 44 year-old Scottish aid worker, callous and brutal and hailed him as a "British hero".

"We will hunt down those responsible and bring them to justice no matter how long it takes," he said, calling IS "the embodiment of evil" and saying his government was prepared "to take whatever steps are necessary" against the militants.

SUNNI "ANVIL"

But he did not announce any air strikes, mindful of war-weary public opinion, parliament's rejection last year of air strikes on Syria, and sensitivities surrounding Scotland's independence referendum on Thursday.

U.S. allies are skeptical of how far Washington will commit to a conflict in which nearly every country in the region has a stake, set against the backdrop of Islam's 1,300-year-old rift between Sunnis and Shi'ites. Many fear there is not enough emphasis on ensuring the Iraqi government is strong and united enough to overcome sectarian divisions and run the country effectively after any intervention.

Britain and the U.S. have ruled out sending ground troops back into Iraq and Kerry did not say which countries had offered.

"We're not looking to put troops on the ground," he said. "There are some who have offered to do so, but we are not looking for that at this moment anyway."

On the CNN program "State of the Union," White House Chief of Staff Denis McDonough was asked if this coalition would need ground troops beyond opposition forces in Syria and Kurdish and government forces in Iraq.

"Ultimately to destroy ISIL we do need to have a force, an anvil against which they will be pushed - ideally Sunni forces," he said, using an acronym for Islamic State.

"EXTREMELY ENCOURAGED"

On Thursday, Kerry won the backing for a "coordinated military campaign" from 10 Arab countries - Egypt, Iraq, Jordan, Lebanon and six Gulf states including rich rivals Saudi Arabia and Qatar.

"This is a strategy coming together as the coalition comes together and the countries declare what they are prepared to do," Kerry said in the interview, taped on Saturday in Egypt.

"I've been extremely encouraged to hear from all of the people that I've been meeting with about their readiness and willingness and to participate," Kerry added.

France has offered to take part in air strikes in Iraq and is expected to give more details this week on what it is willing to do, although its financial resources and forces are already stretched with more than 5,000 soldiers in West Africa.

Michael McCaul, a Republican who chairs the House of Representatives Committee on Homeland Security, told the same CBS program that Prince Ali bin Al Hussein of Jordan told him "he is ready to put his troops into Syria to fight ISIS".

The U.S. could also try to persuade Egypt to put troops in Syria," McCaul said.

A conference in Paris on Monday brings Iraqi authorities together with about 30 countries and organizations to coordinate their response to the Islamic State.

"It will also be the first time to really gage what Russia thinks and is ready to do," a French diplomat said.

The diplomat said Syria was a different case.

"The situation is not the same either legally or militarily. We do not want to strengthen Assad so we have to be sure that strikes there don't do that," the diplomat said.

"We are ready to help Iraq's government which has asked for our help, but not Assad's dictatorship."

(Additional reporting by Jason Szep and John Irish in Paris, Timothy Gardner in Washington, Morag MacKinnon in Perth, Australia and William Maclean in Dubai; writing by Philippa Fletcher; editing by Anna Willard)



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TOP NEWS Scots independence battle reaches fever pitch on streets and screens

GLASGOW Scotland (Reuters) - Thousands of independence supporters took to the streets of Scotland's largest city, Glasgow, on Sunday as polls showed the rival camps running desperately close just five days before a referendum which could bring the break-up of the United Kingdom.

Separatist and unionist leaders worked across the country to woo undecided voters among the four million people Scots and Scotland residents who will vote on their future on Thursday.

Scottish National Party leader Alex Salmond, who has spearheaded the drive for independence, said he was confident the "Yes" campaign would win.

"We're not aiming to win by one vote. We're aiming to achieve a substantial majority if we can," he said on the BBC.

Alistair Darling, a former British finance minister and leader of the "Better Together" campaign, warned that if Scots vote to split from the United Kingdom, it would be an irreversible decision that would bring economic doom and gloom.

With promises from British political leaders of greater powers for Scotland in the event of a "No" vote, Scots could have the best of both worlds, Darling said.

And Queen Elizabeth, coming out of a Sunday morning church service near her Scottish residence Balmoral, told a well-wisher she hoped Scots would think very carefully about the future.

In Glasgow, the blue badges of the "Yes" to independence campaign dominated central Buchanan Street, with a convoy of cars driving through the downtown waving "Yes" banners and tooting horns. Buskers also sang in support of independence and a bagpipe-and-drum band drew a large crowd.

The Glasgow vote will be crucial to the result, given the city's size.

Thousands of people marched to the BBC headquarters, complaining that the state-run broadcaster was biased against the "Yes" campaign.

"We pay our license fees. We don't want them to favour us - we were just marching for an impartial state broadcaster," said Liz, a teacher.

Salmond has frequently accused the BBC - which could be carved up if Scotland votes for independence - of siding with the unionists. A BBC spokesperson said the corporation has been "rigorously impartial".

But the incident showed the high emotions and divisions stirred by the referendum, which could result in the end of the 307-year-old union with England and the break-up of the United Kingdom.

"No one wants to forget what we achieved together during the two World Wars. But where's the vision for the future?" said Ian, an IT manager from Glasgow who had been on the march.

Independence supporters say it is time for Scotland to choose its own leaders and rule itself, free of control from London and politicians they say ignore their views and needs.

"No" campaigners say Scotland is more secure and prosperous as part of the United Kingdom and the end of the union would destroy three centuries of bonds and shared history as well as bring in economic and financial hardship.

More than 4 million Scots as well as English and foreign residents, from the Highands and Islands to Glasgow's gritty inner city estates, are eligible to vote. The question on the ballot paper will ask simply: "Should Scotland be an independent country?"

Out of four new polls, three showed those in favour of maintaining the union with a lead of between 2 and 8 percentage points. But an ICM poll conducted over the Internet showed supporters of independence in the lead with 54 percent and unionists on 46 percent.

RELOCATION PLANS

Last week, Scottish–based banks including RBS (RBS.L) said they had plans to relocate should independence happen, big retailers spoke of possible price rises north of the border and Germany's Deutsche Bank warned of economic meltdown.

Salmond has dismissed this as a London-contrived campaign of bullying and scare-mongering. However, the pound had dropped on market concerns of a "Yes" victory and investors have pulled billions out of British financial assets.

The biggest financial question is what currency an independent Scotland would use. Salmond insists it would keep the pound in a currency union with the rump UK, but Prime Minister David Cameron and others have ruled this out.

Until September, all polls but one in 2013 had shown the unionists with a comfortable lead. But such is the gravity of the situation that finance minister George Osborne cancelled a trip to the G20 meeting in Australia after the vote. Bank of England Governor Mark Carney will leave the G20 meeting early.

The Queen's comment was taken by unionists as a sign of support for Scotland remaining within the United Kingdom. A Buckingham Palace source stressed that the queen was constitutionally above politics and would express no view.

Salmond has said she should stay on as Queen of Scots if independence happens.

Meanwhile the head of the Church of Scotland appealed for Scots to put their differences aside and reconcile after the referendum, whatever the outcome.

In a nationally-broadcast sermon at Edinburgh's St. Mary's Episcopal Cathedral, Reverend John Chalmers urged Scots to vote.

But he added: "The real success of next Thursday will be that...every voice will continue to play its part in shaping the kind of Scotland that people in Scotland vote for," he said.

(Additional reporting by Guy Faulconbridge, Writing by Angus MacSwan, Editing by Ralph Boulton)

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ENTERTAINMENT NEWS: 'No Good Deed' upstages 'Dolphin Tale 2' at box office

LOS ANGELES (Reuters) - Thriller "No Good Deed," the story of an escaped convict who terrorizes a woman and her children inside their home, seized the top spot on U.S. and Canadian box office charts over the weekend, beating family friendly sequel "Dolphin Tale 2."



"No Good Deed" collected $24.5 million in domestic ticket sales from Friday through Sunday, according to estimates from tracking firm Rentrak. "Dolphin Tale 2," the sequel to a 2011 hit about a plucky marine mammal, finished second with $16.6 million.



Last weekend's winner, Marvel's hit space adventure "Guardians of the Galaxy," dropped to third place with $8 million at domestic theaters.



"No Good Deed" stars Idris Elba as an escaped prisoner who terrorizes a mother and her two children after he shows up at their suburban Atlanta home claiming car trouble. Taraji P. Henson plays the mother.



"Dolphin Tale 2" is a follow-up to a 2011 hit about the real-life rehabilitation of a dolphin named Winter that lost its tail in a crab trap. In the sequel, the team that saved Winter seeks a new companion for her after her surrogate mother dies.



"Guardians of the Galaxy" features Chris Pratt and Zoe Saldana as leaders of a group of oddball warriors including a machine gun-firing raccoon.



"Dolphin Tale 2" was released by Warner Bros., a unit of Time Warner Inc. Sony Corp's movie studio released "No Good Deed." Walt Disney Co distributed "Guardians of the Galaxy."



(Reporting by Lisa Richwine and Andrea Burzynski; editing by Ralph Boulton)





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