Apple takes investors on a wild ride

SAN FRANCISCO — With only modest expectations, Robert Leitao of Santa Clarita made a decision in 1994 that would change his life. He bought Apple stock.

This was several years before Steve Jobs returned to resurrect Apple, long before the iPod, the iPhone or the iPads that would make Apple the most valuable company in the world. A $1 investment in Apple at the start of 1994 is now worth about $70.

"Even with the recent sell-off, I'm still doing very well with the stock," said Leitao, who works as director of operations at a Catholic church in Burbank. "Apple provided for a down payment on our home for our blended family of four kids."

Leitao is one of the countless people whose lives have been touched by Apple's stock, which has become a global economic force. It is now one of the most widely held stocks, and the most valuable. Even as Apple Inc.'s market value fell to $480 billion on Friday, it was still larger than the gross domestic product of Norway or Argentina, and more than the combined value of Google Inc. and Microsoft Corp.

Yet that astonishing size and economic influence is also what, many analysts believe, contributes to the extraordinary volatility that can make owning Apple's stock a hair-raising experience.

It was inevitable, analysts say, that after Apple's stock rose 74% in the first nine months of this year, a huge wave of selling would occur as fund managers locked in their profits. And yet, in recent years, these huge dips have been followed by even bigger run-ups that led to new record highs, a dynamic that one trader refers to as the "Apple slingshot."

That pattern has some analysts betting Apple will soar above $1,000 a share in 2013, a scenario almost guaranteed to drive the global obsession with the company's stock into an even greater frenzy.

"The impact on shareholders and on the economy is incredible," said Howard Silverblatt, senior index analyst for S&P Dow Jones Indices. "We've not seen anything like this in the modern trading era. Ever."

Even after the remarkable decade of Apple's revival, the company's stock managed to reach new milestones this year. Early in 2012, Apple became the sixth company ever to surpass $500 billion in market value. In August, it became the only company in history with a market value topping $622 billion.

That performance affects just about anyone who has a 401(k) account or a pension. According to FactSet, a research firm that tracks investment funds, 2,555 institutional investors — mutual funds, hedge funds and pension funds, among others — owned stock in Apple, just behind the 2,590 that held Microsoft stock, as of Sept. 30, the most recent date funds had to disclose their holdings. However, the value of that Apple stock held by institutional investors on that day was $427 billion, compared with $172 billion for Microsoft, according to FactSet.

Silverblatt said the only company that has come close to having such a strong influence on the broader stock markets since World War II is IBM in the early 1980s, when the PC revolution was just getting started. But not only is the value of Apple's stock remarkable, so is its volatility. Such large stocks rarely have such big, quick swings.

Apple shares peaked at $702.10 on Sept. 19, up from $401.44 at the start of the year, a run that astonished analysts. But just as remarkable has been its collapse, falling as low as $505.75 in intra-day trading Nov. 16.

"It's just amazing because it's such a large company," said Brian Colello, a senior research analyst at Morningstar. "The company lost about $35 billion in market cap in one day. That's the size of some large-cap stocks."

Yet such swings have become commonplace for Apple stock. Before its latest swoon of 23.4% since its September high, Apple had experienced three previous corrections of more than 10% over the last two years.

The value of Apple's stock and its extreme swings have made researching it and trading it almost a full-time job for some people. Jason Schwarz of Marina del Rey edits EconomicTiming.com, which sends out up to five newsletters each week to its 1,000 clients that focus in large measure on Apple. He also helps run Lone Peak Asset Management, which has about $500 million in assets.

Schwarz says that what he calls the "Apple slingshot" is actually a virtue of the shares.

"The extraordinary volatility is the result of Apple's strength," Schwarz said. "People try to blame the volatility on Apple's weaknesses."

Schwarz and many other Apple believers argue that people are making a big mistake when they try to understand the stock's behavior by focusing on various bits of bad news such as an executive shake-up, the Maps controversy or questions about market share or competition. They have almost nothing to do with the regular hits taken by Apple shares, the argument goes.

Instead, folks like Schwarz say more technical factors are at work, such as the fact that the fiscal year for many stock funds ends Oct. 31. When the stock peaked in September, many fund managers rushed to sell to lock in profits for the year. Apple stock makes so much money for so many people, then plummets when shareholders pause to reap their profits, Schwarz says.

The volatility has continued in recent weeks, the argument goes, because fears of higher taxes next year have many fund managers trying to take advantage of short-term swings to make bigger profits. That volatility offers tantalizing windows for huge, short-term profits for investors willing to take the risk.

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Chicano rock pioneers Los Lobos marking 40 years

LOS ANGELES (AP) — They are seen as the progenitors of Chicano rock ‘n’ roll, the first band that had the boldness, and some might even say the naiveté, to fuse punk rock with Mexican folk tunes.

It was a group called Los Lobos that had the unusual idea of putting an accordion, a saxophone and something called a bajo sexto alongside drums and Fender Stratocaster guitars and then blasting a ranchera-flavored folk tune or a Conjunto inspired melody through double reverb amps at about twice the volume you’d normally expect to hear.

“They were Latinos who weren’t afraid to break the mold of what’s expected and what’s traditionally played. That made them legendary, even to people who at first weren’t that familiar with their catalog,” said Greg Gonzalez of the young, Grammy-winning Latino-funk fusion band Grupo Fantasma.

To the guys in Los Lobos, however, the band that began to take shape some 40-odd years ago in the hallways of a barrio high school is still “just another band from East LA,” the words the group has used in the title of not one but two of its more than two dozen albums.

As a yearlong celebration of Los Lobos‘ 40th anniversary gets under way, having officially begun on Thanksgiving, much is likely to be made of how the band began as a humble mariachi group, toiling anonymously for nearly a decade at East LA weddings and backyard parties before the unlikely arrival of rock stardom.

That’s, well, sort of true.

For long before there was mariachi in Los Lobos‘ life, there was power-chord rock ‘n’ roll. Before the Latin trio Las Panchos had an impact, there was Jimi Hendrix.

“I actually went to go see him when I was 14 or 15,” says drummer-guitarist and principal lyricist Louie Perez, recalling how he had badgered his widowed mother to spend some of the hard-earned money she made sewing clothes in a sweatshop on a ticket to a Hendrix show.

“I sat right down front,” he recalls, his voice rising in excitement. “That experience just sort of rearranged my brain cells.”

About the same time, he had met a guitarist named David Hidalgo in an art class at James A. Garfield High, the school made famous in the 1988 film “Stand and Deliver” that profiled Jaime Escalante’s success in teaching college-level calculus to poor barrio kids. Soon the two had recruited fellow students Conrad Lozano and Cesar Rosas, both experienced musicians.

“Cesar had played in a power trio,” Perez recalls, while Lozano had been playing electric bass guitar for years.

It was sometime in November 1973 (no one remembers the exact day so they picked Thanksgiving) when the band is believed to have been born.

And the group might have stayed just another garage band from East LA, had it not been for a Mexican tradition called Las Mananitas.

“It’s a serenade to someone on their birthday,” Perez explains, and the group members’ mothers had birthdays coming up.

“So we learned about four or five Mexican songs and we went to our parents’ homes and did a little serenade,” Hidalgo recalled separately.

They were such a hit that they began scouring pawn shops for genuine Mexican instruments and really learning to play them.

Because they were at heart a rock ‘n’ roll band, however, they always played the music a little too loud and a little too fast. That was acceptable at the Mexican restaurants that employed them, until they decided to break out the Stratocaster guitars they had so coveted as kids.

“They said, ‘Well, that’s not what we hired you for,’” Perez says, chuckling.

So they headed west down the freeway to Hollywood, where initially the reaction wasn’t much better.

Saxophonist Steve Berlin recalls seeing the hybrid group showered with garbage one night when they opened for Public Image Ltd. Two years later, however, when they opened for Berlin’s group the Blasters, the reaction was different.

“It was quite literally an overnight success kind of thing,” the saxophonist recalls. “By the next morning, everybody I knew in Hollywood, all they were talking about was this band Los Lobos.”

A few nights later, they asked Berlin if he might jam with them. They were working up some tunes melding punk rock with Norteno, a Latin music genre that uses an accordion and a saxophone, and they needed a sax player.

For his part, Berlin says, he had never heard of Norteno music.

Something clicked, however, and soon he was producing the group’s first true rock album, 1984′s “How Will the Wolf Survive?” At the end of the sessions he was in the band.

The next 28 years would be pretty much the same kind of up-and-down ride as the first 12 were.

The group became international rock stars in 1987 with their version of the Mexican folk tune “La Bamba” for the soundtrack of the film of the same name. They melded 1950s teen idol Ritchie Valens’ rock interpretation with the original Son Jarocho style and sent the song to No. 1.

A two-year tour and a couple albums that nobody bought followed, leaving the group broke and disillusioned.

So they poured their anger and disillusionment into the lyrics and power chords of “Kiko,” the 1992 album now hailed as their masterpiece. A new version, recorded live, was released earlier this year.

The influence of Los Lobos‘ cross-cultural work can be heard to this day in the music of such varied young Latino groups as the hip-hop rockers Ozomatli, the Son Jarocho-influenced alt-music band Las Cafeteras and the Latino pop-rock group La Santa Cecilia, says Josh Kun, an expert on cross-border music.

“All of these bands inherited, wittingly or not, the experimental and style crossing instincts that Los Lobos proved were possible while hanging onto and developing your roots as a Mexican-American group,” said Kun, who curated the Grammy Museum’s recent “Trouble in Paradise” exhibition that chronicled the modern history of LA music.

For Los Lobos, winner of three Grammys, that was just the natural way of doing things for guys, Perez says, who learned early on that they didn’t fit in completely on either side of the U.S.-Mexico border.

“As Mexican-Americans in the U.S. we’re not completely accepted on this side of the border. And then on the other side of the border it’s like, ‘Well, what are you?’” he mused.

“So if that’s the case,” he added brightly, “then, hey, we belong everywhere.”

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School Yoga Class Draws Religious Protest From Christians

T. Lynne Pixley for The New York Times

Miriam Ruiz during a yoga class last week at Paul Ecke Central Elementary School in Encinitas, Calif. A few dozen parents are protesting that the program amounts to religious indoctrination. More Photos »

ENCINITAS, Calif. — By 9:30 a.m. at Paul Ecke Central Elementary School, tiny feet were shifting from downward dog pose to chair pose to warrior pose in surprisingly swift, accurate movements. A circle of 6- and 7-year-olds contorted their frames, making monkey noises and repeating confidence-boosting mantras.

Jackie Bergeron’s first-grade yoga class was in full swing.

“Inhale. Exhale. Peekaboo!” Ms. Bergeron said from the front of the class. “Now, warrior pose. I am strong! I am brave!”

Though the yoga class had a notably calming effect on the children, things were far from placid outside the gymnasium.

A small but vocal group of parents, spurred on by the head of a local conservative advocacy group, has likened these 30-minute yoga classes to religious indoctrination. They say the classes — part of a comprehensive program offered to all public school students in this affluent suburb north of San Diego — represent a violation of the First Amendment.

After the classes prompted discussion in local evangelical churches, parents said they were concerned that the exercises might nudge their children closer to ancient Hindu beliefs.

Mary Eady, the parent of a first grader, said the classes were rooted in the deeply religious practice of Ashtanga yoga, in which physical actions are inextricable from the spiritual beliefs underlying them.

“They’re not just teaching physical poses, they’re teaching children how to think and how to make decisions,” Ms. Eady said. “They’re teaching children how to meditate and how to look within for peace and for comfort. They’re using this as a tool for many things beyond just stretching.”

Ms. Eady and a few dozen other parents say a public school system should not be leading students down any particular religious path. Teaching children how to engage in spiritual exercises like meditation familiarizes young minds with certain religious viewpoints and practices, they say, and a public classroom is no place for that.

Underlying the controversy is the source of the program’s financing. The pilot project is supported by the Jois Foundation, a nonprofit organization founded in memory of Krishna Pattabhi Jois, who is considered the father of Ashtanga yoga.

Dean Broyles, the president and chief counsel of the National Center for Law and Policy, a nonprofit law firm that champions religious freedom and traditional marriage, according to its Web site, has dug up quotes from Jois Foundation leaders, who talk about the inseparability of the physical act of yoga from a broader spiritual quest. Mr. Broyles argued that such quotes betrayed the group’s broader evangelistic purpose.

“There is a transparent promotion of Hindu religious beliefs and practices in the public schools through this Ashtanga yoga program,” he said.

“The analog would be if we substituted for this program a charismatic Christian praise and worship physical education program,” he said.

The battle over yoga in schools has been raging for years across the country but has typically focused on charter schools, which receive public financing but set their own curriculums.

The move by the Encinitas Union School District to mandate yoga classes for all students who do not opt out has elevated the discussion. And it has split an already divided community.

The district serves the liberal beach neighborhoods of Encinitas, including Leucadia, where Paul Ecke Central Elementary is, as well as more conservative inland communities. On the coast, bumper stickers reading “Keep Leucadia Funky” are borne proudly. Farther inland, cars are more likely to feature the Christian fish symbol, and large evangelical congregations play an important role in shaping local philosophy.

Opponents of the yoga classes have started an online petition to remove the course from the district’s curriculum. They have shown up at school board meetings to denounce the program, and Mr. Broyles has threatened to sue if the board does not address their concerns.

The district has stood firm. Tim Baird, the schools superintendent, has defended the yoga classes as merely another element of a broader program designed to promote children’s physical and mental well-being. The notion that yoga teachers have designs on converting tender young minds to Hinduism is incorrect, he said.

“That’s why we have an opt-out clause,” Mr. Baird said. “If your faith is such that you believe that simply by doing the gorilla pose, you’re invoking the Hindu gods, then by all means your child can be doing something else.”

Ms. Eady is not convinced.

“Yoga poses are representative of Hindu deities and Hindu stories about the actions and interactions of those deities with humans,” she said. “There’s content even in the movement, just as with baptism there’s content in the movement.”

Russell Case, a representative of the Jois Foundation, said the parents’ fears were misguided.

“They’re concerned that we’re putting our God before their God,” Mr. Case said. “They’re worried about competition. But we’re much closer to them than they think. We’re good Christians that just like to do yoga because it helps us to be better people.”

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Connecticut shooting: 20 schoolchildren among the 28 dead

The toll in the Connecticut shooting stands at 28 dead, including 20 children and the gunman, Connecticut State Police said Friday.

Speaking at a televised news conference from Newtown, Conn., State Police spokesman Paul Vance confirmed the death toll, making this the deadliest shooting since the Virginia Tech rampage in 2007.

According to Vance, the gunman entered the school and fired at students and staff in one section – two rooms – at the school, he said.

PHOTOS: Shooting at Connecticut elementary school

Eighteen children were pronounced dead at Sandy Hook Elementary School in Newtown. Two pupils were taken to hospitals and pronounced dead there.

Six adults were dead at the scene as was the gunman. Another person was found dead at what Vance described as “a secondary crime scene” in Connecticut, bringing the total to 28.

One person was injured.

None of the victims were identified pending identification, Vance said.

“It’s still an evolving crime scene and it’s just hours old,” Daniel Curtin, a FBI special agent in Connecticut, said. “And it’s obviously very tragic. All we’re saying is that the FBI and our agents have a presence there to assist in any way possible. Because right now it’s a Connecticut state and local investigation at this point. But in times of trial like this we work together.” A weapon was recovered at the scene.

According to sources, the event began with an argument with the principal. Some of the staffers were shot first, then the gunman advanced on a classroom, shooting.

TIMELINE: Deadliest U.S. mass shootings

The incident began at about 9:40 a.m. EST at the school in Newtown, a town of about 27,000 people.Stephen Delgiadice told reporters that his  8-year-old daughter heard two big bangs and teachers told her to get in a corner. His daughter was fine.

“It's alarming, especially in Newtown, Conn., which we always thought was the safest place in America,” he said.

michael.muskal@latimes.com

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McAfee says will not return to Belize, willing to talk to police

(Reuters) – U.S. software pioneer John McAfee said that he will not return to Belize where police want to question him about a murder case, but that he is willing to let authorities from the Central American nation interview him in a “neutral country.”

McAfee, 67, went into hiding after his American neighbor Gregory Faull was fatally shot in November. He made his way secretly to neighboring Guatemala, but the authorities there deported him to Miami on Wednesday.

“I will not go back to Belize. I had nothing to do with the murder,” a relaxed-looking McAfee said in an interview on CNBC.

Police in Belize want to question McAfee as a “person of interest” in Faull’s killing, though authorities there say he is not a prime suspect. McAfee said he barely knew Faull and had “absolutely nothing” to do with his death.

Belize police say their country’s extradition treaty with the United States extends only to suspected criminals, a designation that does not apply to McAfee.

McAfee, an eccentric tech pioneer, made a fortune from the anti-virus software bearing his name and had lived in Belize for four years.

He has charged that authorities have persecuted him because he refused to pay $ 2 million in bribes, and that the extortion attempt occurred after armed soldiers shot one of his dogs, smashed up his property and falsely accused him of running a methamphetamine laboratory.

Belize’s prime minister has rejected the allegations, calling McAfee paranoid and “bonkers.”

(Reporting by Jim Finkle; Editing by Nick Zieminski)

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Singer-songwriter Carole King to receive U.S. Gershwin prize

(Reuters) – American singer-songwriter Carole King will be awarded the Library of Congress Gershwin Prize for Popular Song, the U.S. national library said on Thursday.

The multiple Grammy Award winner co-wrote her first No. 1 hit at age 17 with then-husband Gerry Goffin and was the first female solo artist to sell more than 10 million copies of a single album, with her 1971 release “Tapestry.”

The prize honors individuals for lifetime achievement in popular music, the library said. It is named after songwriting brothers George and Ira Gershwin.

King, now 70, topped the charts with the song “It’s Too Late” in 1971, but is best known for her work performed by others, including “You’ve Got a Friend” by James Taylor and “(You Make Me Feel Like) A Natural Woman” by Aretha Franklin.

“I was so pleased when the venerable Library of Congress began honoring writers of popular songs with the Gershwin Prize,” King said in a statement. “I’m proud to be the fifth such honoree and the first woman among such distinguished company.”

King and Goffin wrote some the biggest hits of the 1960s before their nine-year marriage ended in 1968. They rose to prominence in 1960 writing “Will You Love Me Tomorrow” for the Shirelles.

The duo also scored hits with “Take Good Care of My Baby,” performed by Bobby Vee in 1961, “The Loco-Motion,” performed by Little Eva in 1962 and “Pleasant Valley Sunday,” performed by The Monkees in 1967, among others.

New York-born King did not hit it big as a singer until 1971, when “Tapestry” topped the U.S. album charts for 15 weeks, then a record for a female solo artist.

Past recipients of the award include Paul Simon, Stevie Wonder, Paul McCartney and songwriting tandem Burt Bacharach and Hal David.

(Reporting by Eric Kelsey; Editing by Jill Serjeant and Xavier Briand)

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Life Expectancy Rises Around World, Study Finds

A sharp decline in deaths from malnutrition and infectious diseases like measles and tuberculosis has caused a shift in global mortality patterns over the past 20 years, according to a report published on Thursday, with far more of the world’s population now living into old age and dying from diseases mostly associated with rich countries, like cancer and heart disease.

Tony Karumba/Agence France-Presse — Getty Images

Children in Nairobi, Kenya. Sub-Saharan Africa lagged in mortality gains, compared with Latin America, Asia and North Africa.

The shift reflects improvements in sanitation, medical services and access to food throughout the developing world, as well as the success of broad public health efforts like vaccine programs. The results are striking: infant mortality declined by more than half from 1990 to 2010, and malnutrition, the No. 1 risk factor for death and years of life lost in 1990, has fallen to No. 8.

At the same time, chronic diseases like cancer now account for about two out of every three deaths worldwide, up from just over half in 1990. Eight million people died of cancer in 2010, 38 percent more than in 1990. Diabetes claimed 1.3 million lives in 2010, double the number in 1990.

“The growth of these rich-country diseases, like heart disease, stroke, cancer and diabetes, is in a strange way good news,” said Ezekiel Emanuel, chairman of the department of medical ethics and health policy at the University of Pennsylvania. “It shows that many parts of the globe have largely overcome infectious and communicable diseases as a pervasive threat, and that people on average are living longer.”

In 2010, 43 percent of deaths in the world occurred at age 70 and older, compared with 33 percent of deaths in 1990, the report said. And fewer child deaths have brought up the mean age of death, which in Brazil and Paraguay jumped to 63 in 2010, up from 30 in 1970, the report said. The measure, an average of all deaths in a given year, is different from life expectancy, and is lower when large numbers of children die.

But while developing countries made big strides the United States stagnated. American women registered the smallest gains in life expectancy of all high-income countries’ female populations between 1990 and 2010. American women gained just under two years of life, compared with women in Cyprus, who lived 2.3 years longer and Canadian women who gained 2.4 years. The slow increase caused American women to fall to 36th place in the report’s global ranking of life expectancy, down from 22nd in 1990. Life expectancy for American women was 80.5 in 2010, up from 78.6 in 1990.

“It’s alarming just how little progress there has been for women in the United States,” said Christopher Murray, director of the Institute for Health Metrics and Evaluation, a health research organization financed by the Bill and Melinda Gates Foundation at the University of Washington that coordinated the report. Rising rates of obesity among American women and the legacy of smoking, a habit women formed later than men, are among the factors contributing to the stagnation, he said. American men gained in life expectancy, to 75.9 years from 71.7 in 1990.

Health experts from more than 300 institutions contributed to the report, which provided estimates of disease and mortality for populations in more than 180 countries. It was published in The Lancet, a British medical journal.

The World Health Organization issued a statement on Thursday saying that some of the estimates in the report differed substantially from those done by United Nations agencies, though others were similar. All comprehensive estimates of global mortality rely heavily on statistical modeling because only 34 countries — representing about 15 percent of the world’s population — produce quality cause-of-death data.

Sub-Saharan Africa was an exception to the trend. Infectious diseases, childhood illnesses and maternity-related causes of death still account for about 70 percent of the region’s disease burden, a measure of years of life lost due to premature death and to time lived in less than full health. In contrast, they account for just one-third in South Asia, and less than a fifth in all other regions. Sub-Saharan Africa also lagged in mortality gains, with the average age of death rising by fewer than 10 years from 1970 to 2010, compared with a more than 25-year increase in Latin America, Asia and North Africa.

Globally, AIDS was an exception to the shift of deaths from infectious to noncommunicable diseases. The epidemic is believed to have peaked, but still results in 1.5 million deaths each year.

Over all, the change means people are living longer, but it also raises troubling questions. Behavior affects people’s risks of developing cancer, heart disease and diabetes, and public health experts say it is far harder to get people to change their ways than to administer a vaccine that protects children from an infectious disease like measles.

“Adult mortality is a much harder task for the public health systems in the world,” said Colin Mathers, a senior scientist at the World Health Organization.

Tobacco use is a rising threat, especially in developing countries, and is responsible for almost six million deaths a year globally. Illnesses like diabetes are also spreading fast.

Donald G. McNeil Jr. contributed reporting.

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News Analysis: U.S., Walking Out in a Huff, Makes Its Point

Kamran Jebreili/Associated Press

The U.S. delegation, led by Terry Kramer, right, said the pact could encourage censorship and undermine the hands-off approach to Internet oversight.

At the global treaty conference on telecommunications here, the United States got most of what it wanted. But then it refused to sign the document and left in a huff.

What was that all about? And what does it say about the future of the Internet — which was virtually invented by the United States but now has many more users in the rest of the world?

It may mean little about how the Internet will operate in the coming years. But it might mean everything about the United States’ refusal to acknowledge even symbolic global oversight of the network.

The American delegation, joined by a handful of Western allies, derided the treaty as a threat to Internet freedom. But most other nations signed it. And other participants in the two weeks of talks here were left wondering on Friday whether the Americans had been negotiating in good faith or had planned all along to engage in a public debate only to make a dramatic exit, as they did near midnight on Thursday as the signing deadline approached.

The head of the American delegation, Terry Kramer, announced that it was “with a heavy heart” that he could not “sign the agreement in its current form.” United States delegates said the pact could encourage censorship and undermine the existing, hands-off approach to Internet oversight and replace it with government control.

Anyone reading the treaty, though, might be puzzled by these assertions. “Internet” does not appear anywhere in the 10-page text, which deals mostly with matters like the fees that telecommunications networks should charge one another for connecting calls across borders. After being excised from the pact at United States insistence, the I-word was consigned to a soft-pedaled resolution that is attached to the treaty.

The first paragraph of the treaty states: “These regulations do not address the content-related aspects of telecommunications.” That convoluted phrasing was understood by all parties to refer to the Internet, delegates said, but without referring to it by name so no one could call it an Internet treaty.

A preamble to the treaty commits the signers to adopt the regulations “in a manner that respects and upholds their human rights obligations.”

Both of these provisions were added during the final days of haggling in Dubai, with the support of the United States. If anything, the new treaty appears to make it more intellectually challenging for governments like China and Iran to justify their current censorship of the Internet.

What’s more, two other proposals that raised objections from the United States were removed. One of those stated that treaty signers should share control over the Internet address-assignment system — a function now handled by an international group based in the United States. The other, also removed at the Americans’ behest, called for Internet companies like Google and Facebook to pay telecommunications networks for delivering material to users.

Given that the United States achieved many of its stated goals in the negotiations, why did it reject the treaty in an 11th-hour intervention that had clearly been coordinated with allies like Britain and Canada?

In a Dubai conference call with reporters early on Friday, Mr. Kramer cited a few remaining objections, like references to countering spam and to ensuring “the security and robustness of international telecommunications networks.” This wording, he argued, could be used by nefarious governments to justify crackdowns on free speech.

But even Mr. Kramer acknowledged that his real concerns were less tangible, saying it was the “normative” tone of the debate that had mattered most. The United States and its allies, in other words, saw a chance to use the treaty conference to make a strong statement about the importance of Internet freedom. But by refusing to sign the treaty and boycotting the closing ceremony, they made clear that even to talk about the appearance of global rules for cyberspace was a nonstarter.

It may have been grandstanding, but some United States allies in Europe were happy to go along, saying the strong American stand would underline the importance of keeping the Internet open.

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Push for minimum wage hike intensifies as worker ranks swell

NEW YORK — Before the recession, Amie Crawford was an interior designer, earning $50,000 a year patterning baths and cabinets for architectural firms.

Now, she's a "team member" at the Protein Bar in Chicago, where she makes $8.50 an hour, slightly more than minimum wage. It was the only job she could find after months of looking. Crawford, now 56, says she needed to take the job to stop the hemorrhaging of her retirement accounts.

In her spare time, Crawford works with a Chicago group called Action Now, which is staging protests to raise the minimum wage in a state where it hasn't been raised since 2006.

"Thousands of workers in Chicago, let alone in the rest of the country, deserve to have a livable wage, and I truly believe that when someone is given a livable wage, that is going to bolster growth in communities," she said.

If it seems that workers such as Crawford are more prevalent these days, protesting outside stores including Wal-Mart, McDonald's and Wendy's to call for higher wages, it may be because there are more workers in these jobs than there were a few years ago.

Quiz: How much do you know about the 'fiscal cliff'?

Of the 1.9 million jobs created during the recovery, 43% of them have been in the low-wage industries of retail, food services and employment services, whose workforces include temporary employees who often work part time and without benefits or health insurance, according to a study by Annette Bernhardt, policy co-director of the National Employment Law Project in New York.

At the same time, many workers such as Crawford who have been displaced from their jobs are experiencing significant earnings losses after getting a new job. About one-third of the 3 million workers displaced from their jobs from 2009 to 2011 and then reemployed said their earnings had dropped 20% or more, according to the Bureau of Labor Statistics.

"What these protests are signaling are that working families are at breaking point after three decades of rising inequality and stagnant wages," Bernhardt said.

The rise of low-paying jobs in the recovery, experts said, has cut the spending power of workers who once worked in middle-class occupations. Construction workers who made $30 an hour, for example, during the housing boom may now find themselves working on a temporary basis.

"You see workers trading down their living standards," said Joseph Brusuelas, a senior economist for Bloomberg who studies the U.S. economy.

Now, Brusuelas said, there's an oversupply of workers and they're willing to take any job in a sluggish economy, even if they're overqualified. That includes temporary jobs without benefits, and minimum wage positions such as the one Crawford took.

Although the 2012 election might have brought the idea of income inequality to the forefront of voters' minds, efforts to increase wages for these workers are sputtering in an era of austerity when businesses say they are barely hiring, much less paying workers more.

The New Jersey state legislature handed Gov. Chris Christie a bill to raise the state's minimum wage to $8.50 an hour from the federal minimum of $7.25 this month, but he hasn't signed it and has signaled he might not. An earlier effort in New Jersey to tie the minimum wage to the consumer price index was vetoed by the governor.

Democratic lawmakers in Illinois are also trying to push a bill that would increase the minimum wage — an earlier effort this year failed. The Legislature last voted to raise its minimum wage in 2006, before the recession, and the governor agreed.

"A higher minimum wage means a person has to pay more for each worker," said Ted Dabrowski, vice president of policy at the Illinois Policy Institute, which opposes raising the minimum wage. "Companies have a few choices — increase prices, reduce the number of people they hire, cut employee hours or reduce benefits. When employees become too expensive, they have no choice but to reduce the number of workers."

The Center for Economic and Policy Research in Washington, D.C., however, says there is little indication from economic research that increases in the minimum wage lead to lower employment, and, because higher wages mean workers have more money to spend, employment can actually increase.

A bill to raise the federal minimum wage was introduced to the U.S. Senate by Tom Harkin (D-Iowa) in July and referred to committee, where it has sat ever since.

"Business lobbyists are aware of the campaign and are aggressively working to stop it," said Madeline Talbott, the former lead organizer of Chicago's Action Now. "We've had a hard time getting our legislature to approve it."

But Talbott and other advocates say that the protests that have spread throughout Illinois and the country in recent weeks might force the issue to its head.

"You saw it happening 18 months ago when Occupy started — workers are now realizing that they have rights too in the workplace," said Camille Rivera, executive director of United NY, one of the groups working to raise the minimum wage in New York. "It's a good time for us to be fighting these issues, when companies are making millions of dollars in profits."

The protests are bringing out people who might not usually participate, including Marcus Rose, 33. Rose, who has worked the grill at a Wendy's for 21/2 months, was marching outside that Wendy's in Brooklyn recently on a day of protests, responding as organizers shouted lines such as "Wendy's, Wendy's, can't you see, $7.25 is not for me."

"If you don't stand up for nothing, you can't fall for anything," he said.

Talbott, the Action Now organizer, says that people such as Rose may make a difference in whether lawmakers at the state and national level will listen to the protests. The Obama victory energized the working class to believe that they could fight against big-money interests and win, she said.

"It comes down to the traditional situation — whether the power is in the hands of organized money or of organized people," she said. "The organized money side tends to win, but it doesn't have to win. The more people you are, the more chance you have against money."

alana.semuels@latimes.com

ricardo.lopez2@latimes.com

Semuels reported from New York and Lopez from Los Angeles

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iPhone 5 hits China as Apple market share slips

SHANGHAI (Reuters) – The China release of its iPhone 5 on Friday should win Apple Inc some respite from a recent slide in its share of what is likely already the world’s biggest smartphone market, but its longer-term hopes may depend on new technology being tested by China‘s top telecoms carrier.

Cupertino, California-based Apple has been in talks about a tie-up with China Mobile for four years. A deal with China’s biggest carrier is seen as crucial to improve Apple’s distribution in a market of 290 million users – which is forecast to double this year.

China is Apple’s second-largest and fastest-growing market – it brings in around 15 percent of total revenue – but the company’s failure to strike a deal with China Mobile means it is missing out on a large number of phone users. As the China pie grows, Apple’s sales increase, but without China Mobile, it’s losing ground at a faster rate compared to other brands.

“In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in China. However, in relative terms, I don’t believe it will move the needle enough in market share,” said Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant.

China Mobile and Apple initially said they were separated only by a technical issue – as the Chinese carrier runs a different 3G network from most of the world – but that has evolved into a broader and more complex issue of revenue-sharing.

“China Mobile and Apple still have to solve many issues, such as the business model, articles of cooperation and revenue division, but I believe we will reach an agreement eventually,” China Mobile CEO Li Yue was reported by Chinese media as saying in Guangzhou last week.

Apple China declined to comment. China Mobile said it had no update to the Apple discussions.

STRONG PRE-ORDERS

Apple’s ranking in China’s smartphone market slipped to sixth in July-September, according to research firm IDC, [ID:nL4N09G1QK] but investors, primed to look to China product launches for an uptick in Apple’s quarterly sales, have good headline numbers to digest – more than 300,000 iPhones pre-ordered on one carrier alone. But it’s the lack of a deal with the No.1 carrier that prevents those numbers being stronger.

The iPhone is currently sold through Apple’s seven stores, resellers and through China Unicom and China Telecom – which together have fewer than half the mobile subscribers of bigger rival China Mobile.

“Apple’s market share declined because of the transition between the iPhone 4S and 5. Their market share will recover (with the iPhone 5), but if you don’t have China Mobile, the significant market share gains will be very difficult,” said Huang Leping, an analyst at Nomura in Hong Kong.

TD-LTE: STILL DISTANT

Cutting a deal with a Chinese state-owned carrier may be less optimal than the deals Apple is used to in other markets, and analysts note that China Mobile wouldn’t necessarily open the flood gates for Apple.

Ovum’s Putcha believes Apple and China Mobile will eventually strike a deal – though this would be for an iPhone running on China Mobile’s next-generation network rather than its current 3G network.

Of China Mobile’s 704 million subscribers, only 79 million are on its 3G network, and Apple has been reluctant to sign up to China Mobile’s under-utilized, homegrown TD-SCDMA technology. “Apple likely doesn’t see the return-on-investment in extending themselves for TD-SCDMA,” Putcha said.

China Mobile is currently trialling its next-generation network, TD-LTE, which could be of more interest to Apple, but full-scale commercial use – and an iPhone tie-up – could still be years away.

ANDROID THREAT

Meanwhile, rivals are circling, eating away at Apple’s smartphone market share. Samsung Electronics, Lenovo Group and little-known Chinese brand Coolpad held the top three slots in the third quarter, according to IDC.

All three have relationships with China Mobile and offer smartphone models at different price points. Apple competes exclusively at the high-end, and even there, rivals are rolling out models with China Mobile. Last week, Nokia said it planned to release its latest Lumia smartphone with China’s top carrier, which is also expected to launch Research in Motion’s new Blackberry 10, analysts predict.

“The threat will still come more from the Android camp where they have many vendors already working with China Mobile and offering high-end phones,” said TZ Wong, a Singapore-based IDC analyst.

While these smartphones don’t generate the buzz of a new iPhone, Chinese buyers are not known for their brand loyalty, and this could siphon away users considering an Apple upgrade.

“I’ve used a Blackberry, Android and iOS and, personally, I want to try the Windows 8,” said Andy Huang, a 37-year-old fund manager, who owns most iPad models, an iPhone 4 and a 4S. “I think the Windows 8 is very innovative.”

With a China Mobile deal looking some way off, Apple could always boost market share by offering cheaper models – the basic iPhone 5 will cost 5288 yuan ($ 850) without a contract – though this appears an unlikely route for a high-end brand.

“If they want to expand market share, probably the only way to do it here dramatically would be to put out a lower cost phone,” said Michael Clendenin, managing director at RedTech Advisors. “It’s really uncertain if they’d decide to go that route … Apple’s a mystery in that regard.”

($ 1 = 6.2518 Chinese yuan)

(Additional reporting by the Shanghai Newsroom and Jane Lee; Editing by Kazunori Takada and Ian Geoghegan)

Tech News Headlines – Yahoo! News

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A Minute With: Director Peter Jackson on shooting “The Hobbit”

LOS ANGELES (Reuters) – After bringing J.R.R. Tolkien‘s “The Lord of the Rings” trilogy to life, filmmaker Peter Jackson is back in the world of Middle Earth with the author’s prequel, “The Hobbit.”

The three-film series is due to open in U.S. theaters on Friday with “The Hobbit: An Unexpected Journey.”

The Oscar-winning director, 51, told Reuters about the 3D film, including the 48 frames per second (fps) format he used, which was widely debated by fans and critics.

Q: You originally intended “The Hobbit” to only be two parts. Why stretch it out to three?

A: “Back in July, we were near the end of our shoot and we started to talk about the things that we had to leave out of the movies. There’s material at the end of ‘The Return of the King’ (the final part of ‘The Lord of the Rings‘ trilogy) in the appendices that takes place around the time of ‘The Hobbit.’

“We were thinking, this is our last chance because it’s very unlikely we’re ever going to come back to Middle Earth as filmmakers. So we talked to the studio and next year we’re going to be doing another 10 to 12 weeks of shooting because we’re now adapting more of Tolkien’s material.”

Q: At what point did you decide you would direct the film yourself after originally handing it to Guillermo del Toro?

A: “At the time (we wrote the script), I was worried about repeating myself and worried that I was competing with myself. I thought it would be interesting to have another director with a fresh eye coming in and telling the story. But after Guillermo left, having worked on script and the production for well over a year at that stage, I was very emotionally attached to it. I just thought, this is an opportunity I’m not going to say no to.”

Q: You hired Gollum actor Andy Serkis to do second unit directing on the film, something he has never done before. What made you hand the task to a novice?

A: “I know how strongly Andy has been wanting to direct. One of the problems with second unit is that you tend to have conservative footage given to you by the director. They play it safe. I knew that I wouldn’t get that from Andy because he’s got such a ferocious energy. He goes for it and doesn’t hold back. I knew that if Andy was the director I would be getting some interesting material, that it would have a life and energy to it.”

Q: What inspired you to make a film in 48 fps?

A: “Four years ago I shot a six or seven minute King Kong ride for Universal Studios’ tram ride in California. The reason we used the high frame rate was that we didn’t want people to think it’s a movie. You want that sense of reality, which you get from a high frame rate, of looking in to the real world. At the time, I thought it would be so cool to make a feature film with this process.”

Q: Not everyone has embraced “The Hobbit” in 48 fps.

A: “For the last year and a half there’s been speculation, largely negative, about it and I’m so relieved to have gotten to this point. I’ve been waiting for this moment when people can actually see it for themselves. Cinephiles and serious film critics who regard 24 fps as sacred are very negative and absolutely hate it. Anybody I’ve spoken to under the age of 20 thinks it’s fantastic. I haven’t heard a single negative thing from the young people, and these are the kids that are watching films on their iPads. These are the people I want to get back in the cinema.”

Q: Why all the hoopla over a frame rate?

A: “Somehow as humans, we have a reaction to change that’s partly fear driven. But there are so many ways to look at movies now and it’s a choice that a filmmaker has. To me as a filmmaker, you’ve got to take the technology that’s available in 2012, not the technology we’ve lived with since 1927, and say how can we enhance the experience in the cinema? How can we make it more immersive, more spectacular?”

Q: George Lucas sold Lucasfilm to Disney for $ 4 billion. Do you think you will sell your New Zealand facility Weta someday?

A: “I would if I want to retire at some stage and want to have a nice easy life, which will hopefully happen one day. But in the foreseeable future, the fact that I’m an owner of my own digital effects facility is a fantastic advantage for me.”

Q: How so?

A: “When we asked the studio if we could shoot ‘The Hobbit‘ at 48 fps, we promised the budget would be the same. But it actually does have a cost implication because you’ve got to render twice as many frames and the rendering takes more time. The fact that we owned Weta and could absorb that in-house was actually part of the reason we were able to do the 48 frames.”

(Editing by Patricia Reaney)

Celebrity News Headlines – Yahoo! News

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World’s Population Living Longer, New Report Suggests

A sharp decline in deaths from malnutrition and diseases like measles and tuberculosis has caused a shift in global mortality patterns over the past 20 years, according to a new report, with far more of the world’s population now living into old age and dying from diseases more associated with rich countries, like cancer and heart disease.

The shift reflects improvements in sanitation, medical services and access to food throughout the developing world, as well as the success of broad public health efforts like vaccine programs. The results are dramatic: infant mortality has declined by more than half between 1990 and 2010, and malnutrition, the No. 1 risk factor for death and years of life lost in 1990, has fallen to No. 8.

At the same time, chronic diseases like cancer now account for about two out of every three deaths worldwide, up from just over half in 1990. Eight million people died of cancer in 2010, 38 percent more than in 1990. Diabetes claimed 1.3 million lives in 2010, double the number in 1990.

But while developing countries made big strides – the average age of death in Brazil and Paraguay, for example, jumped to 63 in 2010, up from 28 in 1970 – the United States stagnated. American women registered the smallest gains in life expectancy of all high-income countries between 1990 and 2010. The two years of life they gained was less than in Cyprus, where women gained 2.3 years of life, and Canada, where women gained 2.4 years. The slow increase caused American women to fall to 36th place in the report’s global ranking of life expectancy, down from 22nd in 1990.

“It’s alarming just how little progress there has been for women in the United States,” said Christopher Murray, director of the Institute for Health Metrics and Evaluation, a health research organization financed by the Bill and Melinda Gates Foundation at the University of Washington that coordinated the report. Rising rates of obesity among American women and the legacy of smoking, a habit women in this country formed later than men, are among the factors contributing to the stagnation, he said.

The World Health Organization issued a statement Thursday saying that some of the estimates in the report differ substantially from those done by United Nations agencies, though others are similar. All comprehensive estimates of global mortality rely heavily on statistical modeling because only 34 countries – representing about 15 percent of the world’s population – produce quality cause-of-death data.

Health experts from more than 300 institutions contributed to the report, which measured disease and mortality for populations in more than 180 countries. It was published Thursday in the Lancet, a British health publication.

The one exception to the trend was sub-Saharan Africa, where infectious diseases, childhood illnesses and maternal causes of death still account for about 70 percent of all illness. In contrast, they account for just one-third in South Asia, and less than a fifth in all other regions. Sub-Saharan Africa also lagged in mortality gains, with the average age of death there rising by fewer than 10 years from 1970 to 2010, compared with a more than 25-year increase in Latin America, Asia and North Africa.

The change means that people are living longer, an outcome that public health experts praised. But it also raises troubling questions. Behavior affects people’s risks of developing noncommunicable diseases like cancer, heart disease and diabetes, and public health experts say it is far harder to get people to change their ways than to administer a vaccine that protects children from an infectious disease like measles.

“Adult mortality is a much harder task for the public health systems in the world,” said Colin Mathers, a senior scientist at the World Health Organization in Geneva. “It’s not something that medical services can address as easily.”

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S.&P. Streak Comes to an End on Fiscal Worries

The Standard & Poor’s 500-stock index ended its six-day winning streak Thursday, retreating as worries intensified that Washington’s fiscal negotiations were dragging on with little progress.

Anxiety about the talks between Democrats and Republicans was enough to offset encouraging data on retail sales and jobless claims.

Investors are concerned that tax increases and spending cuts, set to begin in 2013 if a deal is not reached in Washington, will hurt growth. The stock market had taken the heated talk in stride lately, but downbeat remarks from the House speaker, John A. Boehner of Ohio, prompted some selling Thursday.

Mr. Boehner accused President Obama of “slow walking” the economy toward the automatic tax increases and spending cuts that will occur on Jan. 1, 2013, if no deal is reached. He was scheduled to meet with Mr. Obama later on Thursday.

“There is no conviction here and Boehner’s comments — as harsh as they were — were realistic,” said Jason Weisberg, managing director at the Seaport Securities Corporation in New York.

“The fiscal cliff is already built in,” Mr. Weisberg said. “That being said, people don’t like to be told the apocalypse is coming over and over and over again. The real players in this market have already closed their books.”

After nearing a 1 percent decline for the day, the S.& P. 500 pared losses late in the session. The index had posted six consecutive sessions of gains through Wednesday, and at one point Wednesday, the S.& P. 500 touched its highest intraday level since Oct. 22.

While the Federal Reserve’s announcement on Wednesday of a new round of economic stimulus bolstered stocks, Chairman Ben Bernanke’s comments that monetary policy would not be sufficient to offset the impact of the fiscal crisis weighed on sentiment.

The Dow Jones industrial average tumbled 74.73 points, or 0.56 percent, to 13,170.72 at the close. The S.& P. 500-stock index fell 9.03 points, or 0.63 percent, to 1,419.45. The Nasdaq composite index slid 21.65 points, or 0.72 percent, to end at 2,992.16.

Apple’s stock, down 1.7 percent at $529.69, was among the biggest drags on the Nasdaq, while I.B.M., down 0.5 percent at $191.99, was among the biggest weights on the Dow. A federal jury in Delaware Thursday found that Apple’s iPhone infringed on three patents owned by MobileMedia Ideas.

Among the day’s biggest gainers, Best Buy shares shot up 15.9 percent to $14.12 after a report that the company’s founder, Richard M. Schulze, was expected to offer to buy the consumer electronics retailer this week.

The energy and information technology sectors were the S.& P.’s weakest performers, with the S.& P. energy index declining 0.9 percent. Shares of the American refining company Phillips 66 lost 1.6 percent to $52.21.

The day’s data sent some positive signals on the economy, with weekly claims for jobless benefits dropping to nearly the lowest level since February 2008, and retail sales rising in November after an October decline, improving the picture for consumer spending.

In Europe, European Union finance ministers reached agreement to make the European Central Bank the bloc’s top banking supervisor, which could increase confidence in the ability of European Union leaders to confront the euro zone’s sovereign debt crisis.

The Treasury’s 10 year note fell 9/32 to 99 1/32, with the yield rising to 1.73 from 1.70 on Wednesday.

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'Straw' buyer of arms linked to border agent's death is sentenced

PHOENIX — A federal judge sentenced a Phoenix man Wednesday to nearly five years in prison for purchasing firearms for a Mexican drug cartel, triggering a chain of events that included the death of an elite Border Patrol agent and the unraveling of the failed federal gun-tracking operation called Fast and Furious.

Jaime Avila Jr., 25, was a "straw purchaser" of the firearms for the cartel, and his purchases included two rifles found at the scene of the death of Border Patrol Agent Brian A. Terry, who was killed two years ago this week in the desert south of Tucson.

Avila purchased 52 firearms over 10 months. Judge James A. Teilborg sentenced Avila to 57 months in prison for what he called running "weapons of war." Avila struck a deal with the federal government and pleaded guilty to a variety of weapons charges.

FULL COVERAGE: Fast and Furious

At the hearing, a cousin of Terry spoke for the slain agent's family, asking the judge to make an example of Avila.

"We believe that Mr. Avila initiated a deadly domino effect when he illegally bought those weapons and then delivered them to people who would ultimately put them in the hands of Brian's killers," said the cousin, Robert Heyer, reading from a statement.

In turn, Avila's attorney pleaded with the judge to give her client a lighter sentence, saying he was remorseful and only dabbled in drug running to feed his methamphetamine addiction.

"At the point that Mr. Avila became aware of his of connection to the incident I think he was shocked and dismayed.... He had no idea his behavior would lead to such great lengths," defense attorney Candice Shoemaker said.

Avila was one of about 20 straw buyers that were the focus of Fast and Furious, an investigation conducted by the Phoenix office of the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The investigation allowed weapons to be illegally sold in the United States so they could later be tracked across the border to Mexican drug cartels. The intent was to arrest cartel leaders, but most of the firearms disappeared. The program eventually was shut down.

During and after the court hearing, family members of Avila and Terry painted pictures of their loved ones and how their lives had collided. One, the father of a 19-month-old boy, had a drug addiction. The other, described as the backbone of his family, was nicknamed "Superman" by his Border Patrol colleagues.

On Jan. 16, 2010, Avila walked into the Lone Wolf Gun Club in Glendale, Ariz., and illegally purchased three rifles, plopping down $1,500 in cash. Nearly a year later, two of the weapons were found in a desolate section of the Arizona desert after they were dropped by the men who are suspected of killing Terry on Dec. 14, 2010.

Heyer, also chairman of the Brian Terry Foundation, described Terry as a strong, competitive, courageous and handsome man who was very patriotic. The Michigan native served in the Marine Corps after high school and went to college, where he received a degree in criminal justice. He went on to become part of the elite Tactical Unit for the Border Patrol, known as BORTAC.

"At age 40, he had much to look forward to, which included getting married and starting a family; but for now, he was living his dream," Heyer said.

Terry was supposed to fly back to Michigan for Christmas after completing his shift the night of his death. True to his meticulous attention to detail, Terry had already mailed his family's Christmas gifts. The presents trickled in the same week his family received his body for burial.

"With each delivery, we felt the indescribable pain of Brian's death," Heyer said.

Avila's family made no excuses for him and described Avila as a son and brother with a "good heart" who ended up running with the wrong crowd and battling a meth habit. They said they made no excuses for their loved one but stated that Avila didn't know that the consequences to his drug running would lead to death.

"My son is not an assassin," Avila's mother, Irene Rodriguez, said after the hearing.

Avila left behind a 19-month-old son, Jayden, and his family said he had vowed to clean up his life while in prison to serve as a role model for his boy.

"His son is his pride and joy at this moment," sister Beatriz Avila said. She extended her condolences to the Terry family and said she was glad that the sentencing was over.

ALSO:

Whites to lose majority status by 2043, the census projects

Suspect in Etan Patz case pleads not guilty to murdering boy

Oregon mall shooting survivor awake, 'a fighter,' surgeon says

cindy.carcamo@latimes.com

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How “Life of Pi” animators visualized Ang Lee’s blank slate

LOS ANGELES (TheWrap.com) – “Life of Pi” is a movie that has the proverbial cast of thousands… of animals, that is. In one shot set on the ocean, there are 40,000 flying fish. In another one set on a floating island, there are 60,000 meerkats. And not one of them was living and breathing, of course.

“No real meerkats were used,” senior animation supervisor Erik-Jan De Boer told the audience at an effects-themed Q&A following TheWrap’s screening of the movie at the Landmark Theatre on Monday night. “Except of course we went to meerkat sanctuaries and zoos to shoot a lot of reference footage…”

“And the two of us watched every episode of ‘Meerkat Manor,’” interrupted visual effects supervisor Bill Westenhofer. “We were gonna watch one, but it gets addictive.”

That was about all the time these two had to indulge in reality TV during the long gestation and post-production of Pi, which establishes a new benchmark for awe-inspiring digital trickery – particularly in 3D, or “stereo,” as Westenhofer and De Boer refer to the effects-complicating process.

“In total,” De Boer told TheWrap’s editor-in-chief Sharon Waxman, “we animated 580 animals in about 290 shots for the movie, which includes a giraffe, a fox, a fish, and of course the hyena and orangutan.” Not to mention the little matter of the tiger, “Richard Parker,” whose appearances as one of the movie’s co-leads are 15 percent real, 85 percent digital.

That’s not including the aforementioned meerkat and flying fish extras, brought to life via a software program appropriately titled Massive. (If only it had been around in Cecil B. DeMille‘s day.)

“The flying fish sequence is where we start to take some artistic liberties, since Pi’s telling you a tale,” said Westenhofer. “Maybe there were a thousand flying fish in reality, or even a hundred, but you’re seeing his mind’s eye, which saw this multitude, so we have 40,000 in one particular spot. The Massive software is almost artificial intelligence, where you write a little program that’s the brain for each individual fish, and it decides if it’s going to hop out of the water, and how long it’s going to fly; if it sees someone in its path, it does avoidance.”

But before any of that was animated, there was the live-action filming that took place on a 70 meter-by-30 meter wave tank that director Ang Lee had specially built for the film. And there, said Westenhofer, “you had (star) Suraj Sharma on a boat with two guys in rubber rafts just chucking rubber fish at him as hard as they possibly can. It’s a good mixture of the low-tech and the high-tech.”

Of course, it wasn’t fish but previous experience with big cats that got Rhythm & Hues the assignment from Lee to go from lions to tigers and Pi. “He knew we had done the lion in the first Narnia movie. He asked, ‘Does a digital character look more or less real in 3D?’ We looked at each other and thought that was a pretty good question.”

As well as a leading one, since Lee had already made the decision at that point, in 2009, to shoot in 3D. “We took one of the shots and rendered it in stereo and said ‘Yeah, it gives it a little more presence and makes it more real.’” Good answer! “That was the start of our relationship with him.”

Although “Life of Pi” doesn’t exactly go for documentary-style realism, every effort was made to keep the tiger’s actions and reactions to what experts and trainers told them a creature would really do in those situations. Not having him spout any Aslan-style aphorisms was a nice start on that de-anthropomorphizing.

“We always strive for photorealism,” said De Boer – even when they’re working on a Narnia or Cats and Dogs. “Motion-wise we strive for perfect physicality and try to get that animal to behave as characteristically as possible – and then we always have to make them talk or dance or do something really weird, and the realism goes out the window and everybody knows that we were there. For me what was really cool about this movie is not only do we stick with the real animal but we also have to intercut it with a live-action animal, so that made the challenge for us that much bigger.”

Added Westenhofer, “We told the crew we wanted to work ourselves out of any recognition by making it look as real as possible.”

It was at least as big of a challenge, as far as Westenhofer was concerned, to make the digital waves match or amplify the real tank waves – and to create the film’s skies completely from scratch. “There’s not many films where we spend this much time on the water. I think ‘Old Man and the Sea’ harkens back! But even with ‘Titanic,’ you’ll see the water and then go inside.” For much of “Life of Pi,” “inside” amounts to a few furtive peeks under a tarp.

Hence what, on a project like this, becomes a fine line where digital effects providers are also, to some extent, taking over the role of cinematography and art direction. Going to work on filling up these blue-screen shots, the Rhythm & Hues people might well have been humming Bruce Springsteen’s “Empty Sky” to themselves.

“What I’m absolutely most proud of is with these visual effects is that we were given a blank slate for a lot of these shots,” Westenhofer told the audience. “We were given a boat in front of a blue screen, and it was the visual effects team who really were a lot of the creative innovators on the movie. Certainly it was Ang’s vision we were creating. But we’d start a shot, and though Ang absolutely knows what he wants, his communication is sometimes not as specific as you want. Instead of saying ‘I want a three-quarters cloudy sky with yellow over here and some blue,’ he’d say ‘I want a pensive sky.’

Or, ‘I want it to be operatic.’ So it would be our job to go translate that, and the team did a great job of supplying that.

“And Claudio Miranda did an awesome, awesome job on the cinematography, but a lot of the cinematography on the ocean is digital effects.”

Movies News Headlines – Yahoo! News

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U.S. designates Syria rebel group a terrorist organization

WASHINGTON — The Obama administration has formally designated a rebel group fighting in Syria as a terrorist organization in an effort to marginalize the Al Qaeda affiliate and reduce its chances of gaining power should the Syrian government fall.

Blacklisting Al Nusra Front is one of several diplomatic moves planned by the administration to try to maneuver moderate opposition groups into position to shape a pro-Western government if President Bashar Assad is ousted.

U.S diplomats are to take another step toward that end Wednesday at a meeting in Morocco, where the U.S. is expected to formally recognize a recently formed coalition of rebel groups — the National Coalition of Syrian Revolutionary and Opposition Forces — as Syria's legitimate government-in-waiting.

"We've made a decision that the Syrian opposition coalition is now inclusive enough, is reflective and representative enough of the Syrian population that we consider them the legitimate representative of the Syrian people in opposition to the Assad regime," President Obama told ABC News on Tuesday in advance of the Morocco meeting.

U.S. officials acknowledge, however, that the umbrella group has limited influence with the dozens of insurgent groups that have emerged in Syria's nearly 21-month-old civil war.

Most of those insurgent groups are believed to be secular in nature, but administration officials described Al Nusra Front as a wing of the group Al Qaeda in Iraq, which was responsible for the deaths of hundreds of Americans during the height of the Iraq war.

"Extremists fighting the Assad regime are still extremists, and they have no place in the transition that will come," a senior administration official, who declined to be identified because of the diplomatic sensitivity of the subject, said Tuesday.

U.S. officials said they hoped that blacklisting Al Nusra Front would persuade other opposition militias in Syria to steer clear of it and prompt Mideastern allies that may be arming its fighters to stop.

But some Syrian opposition leaders denied that Al Nusra Front is connected to Al Qaeda. Their comments raised the possibility that the U.S. move could backfire and increase rebel unhappiness with the United States. Some rebel commanders feel Washington has let them down by failing to provide military support.

Many militias respect Al Nusra Front's fighting ability and have gained access to captured weapons by collaborating with the group. At least 29 opposition groups have called for demonstrations Friday to show their support for Al Nusra Front.

An opposition activist in Morocco preparing for the meeting on Syria called the blacklisting a mistake that was supposedly based on intercepted communications between Al Nusra Front and Al Qaeda. Many of its fighters "have no links to Al Qaeda," said the activist, who asked not to be identified by name.

Farouk Tayfour, the deputy leader of the Muslim Brotherhood of Syria, said the designation was "very wrong and too hasty.... It is too early to categorize people inside Syria this way, considering the chaos and the gray atmosphere in the country," he told Reuters news service.

The terrorist designation will freeze the group's foreign assets and bar Americans from knowingly providing support to it. U.S. officials acknowledged that the group probably relies little, if at all, on American support.

But officials said the blacklisting will make it harder for known Al Nusra Front members to cross borders, which could hamper their operations, and will alert Syrians to a group supporting a radical Islamist ideology that most in the country don't share.

"We have called them out," a second senior administration official said.

paul.richter@latimes.com

Special correspondent Rima Marrouch, on assignment in Marrakech, Morocco, contributed to this report.

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Lawsuit claims A&E’s ‘Storage Wars’ show is rigged

LOS ANGELES (AP) — Some of the valuables found hidden in abandoned lockers on A&E’s “Storage Wars” have been added by producers to deceive viewers, a former cast member of the show claims in a lawsuit filed Tuesday.

David Hester‘s suit claims producers have added a BMW Mini and newspapers chronicling Elvis Presley‘s death to lockers in order to build drama for the show and that his complaints about the practices led to his firing.

Hester is seeking more than $ 750,000 in his wrongful termination, breach of contract and unfair business practices lawsuit. A&E Television Network declined comment, citing the pending lawsuit.

“Storage Wars” follows buyers who bid for abandoned storage lockers hoping to find valuables tucked inside.

“A&E regularly plants valuable items or memorabilia,” the lawsuit states. Hester’s suit claims he was fired from participating in the series’ fourth season after expressing concerns that manipulating the storage lockers for the sake of the show was illegal.

He claims that producers stopped adding items to his units after his initial complaints but continued the practice for other series participants. The lawsuit alleges entire units have been staged and the practice may violate a federal law intended to prevent viewers from being deceived when watching a show involving intellectual skills.

“Storage Wars” depicts buyers having only a few moments to look into an abandoned unit before deciding on whether to bid on it at auction. The lawsuit claims some of the auction footage on the show is staged.

Hester, known as “The Mogul” on the show, has been buying abandoned storage units and re-selling their contents for 26 years, according to the suit.

Nielsen Co. has ranked “Storage Wars” among cable television’s top-ranked shows several times since its 2010 debut.

Entertainment News Headlines – Yahoo! News

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Rate of Childhood Obesity Falls in Several Cities

Jessica Kourkounis for The New York Times

At William H. Ziegler Elementary in Northeast Philadelphia, students are getting acquainted with vegetables and healthy snacks.

PHILADELPHIA — After decades of rising childhood obesity rates, several American cities are reporting their first declines.

The trend has emerged in big cities like New York and Los Angeles, as well as smaller places like Anchorage, Alaska, and Kearney, Neb. The state of Mississippi has also registered a drop, but only among white students.

“It’s been nothing but bad news for 30 years, so the fact that we have any good news is a big story,” said Dr. Thomas Farley, the health commissioner in New York City, which reported a 5.5 percent decline in the number of obese schoolchildren from 2007 to 2011.

The drops are small, just 5 percent here in Philadelphia and 3 percent in Los Angeles. But experts say they are significant because they offer the first indication that the obesity epidemic, one of the nation’s most intractable health problems, may actually be reversing course.

The first dips — noted in a September report by the Robert Wood Johnson Foundation — were so surprising that some researchers did not believe them.

Deanna M. Hoelscher, a researcher at the University of Texas, who in 2010 recorded one of the earliest declines — among mostly poor Hispanic fourth graders in the El Paso area — did a double-take. “We reran the numbers a couple of times,” she said. “I kept saying, ‘Will you please check that again for me?’ ”

Researchers say they are not sure what is behind the declines. They may be an early sign of a national shift that is visible only in cities that routinely measure the height and weight of schoolchildren. The decline in Los Angeles, for instance, was for fifth, seventh and ninth graders — the grades that are measured each year — between 2005 and 2010. Nor is it clear whether the drops have more to do with fewer obese children entering school or currently enrolled children losing weight. But researchers note that declines occurred in cities that have had obesity reduction policies in place for a number of years.

Though obesity is now part of the national conversation, with aggressive advertising campaigns in major cities and a push by Michelle Obama, many scientists doubt that anti-obesity programs actually work. Individual efforts like one-time exercise programs have rarely produced results. Researchers say that it will take a broad set of policies applied systematically to effectively reverse the trend, a conclusion underscored by an Institute of Medicine report released in May.

Philadelphia has undertaken a broad assault on childhood obesity for years. Sugary drinks like sweetened iced tea, fruit punch and sports drinks started to disappear from school vending machines in 2004. A year later, new snack guidelines set calorie and fat limits, which reduced the size of snack foods like potato chips to single servings. By 2009, deep fryers were gone from cafeterias and whole milk had been replaced by one percent and skim.

Change has been slow. Schools made money on sugary drinks, and some set up rogue drink machines that had to be hunted down. Deep fat fryers, favored by school administrators who did not want to lose popular items like French fries, were unplugged only after Wayne T. Grasela, the head of food services for the school district, stopped buying oil to fill them.

But the message seems to be getting through, even if acting on it is daunting. Josh Monserrat, an eighth grader at John Welsh Elementary, uses words like “carbs,” and “portion size.” He is part of a student group that promotes healthy eating. He has even dressed as an orange to try to get other children to eat better. Still, he struggles with his own weight. He is 5-foot-3 but weighed nearly 200 pounds at his last doctor’s visit.

“I was thinking, ‘Wow, I’m obese for my age,’ ” said Josh, who is 13. “I set a goal for myself to lose 50 pounds.”

Nationally, about 17 percent of children under 20 are obese, or about 12.5 million people, according to the Centers for Disease Control and Prevention, which defines childhood obesity as a body mass index at or above the 95th percentile for children of the same age and sex. That rate, which has tripled since 1980, has leveled off in recent years but has remained at historical highs, and public health experts warn that it could bring long-term health risks.

Obese children are more likely to be obese as adults, creating a higher risk of heart disease and stroke. The American Cancer Society says that being overweight or obese is the culprit in one of seven cancer deaths. Diabetes in children is up by a fifth since 2000, according to federal data.

“I’m deeply worried about it,” said Francis S. Collins, the director of the National Institutes of Health, who added that obesity is “almost certain to result in a serious downturn in longevity based on the risks people are taking on.”

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Daily Stock Market Activity

Stocks rose on Tuesday, led by gains in technology companies, helping the Standard & Poor’s 500-stock index to end at its highest level since Election Day.

A 2.18 percent gain, to $541.39, in Apple’s stock lifted the Nasdaq composite index, as the company rebounded from a week in which investors took profits before a possible tax increase next year. Before Tuesday’s trading, Apple shares had lost 25 percent from an intraday high hit in September.

Stocks pared some gains by late afternoon as more news on the negotiations over a fiscal policy in Washington emerged. The Senate majority leader, Harry Reid, said it would be difficult to reach an agreement resolving tax increases and spending cuts before Christmas.

“There’s been a real explosion in anxiety over this thing,” said James Dailey, portfolio manager of Team Asset Strategy Fund in Harrisburg, Pa. “Because markets have become the way they are, you’ve got people just stepping back.”

The Dow Jones industrial average rose 78.56 points, or 0.6 percent, to 13,248.44.

The Standard & Poor’s 500-stock index was up 9.29 points, or 0.65 percent, to 1,427.84.

The Nasdaq composite index was up 35.34 points, or 1.18 percent, at 3,022.30.

Other major tech stocks also rose. Texas Instruments gained 4 percent, to $31.01, after raising its profit target late Monday. That helped other chip makers rally. The PHLX Semiconductor index was up 1.9 percent. Microsoft rose 1.41 percent, to $27.32.

Retailers like the luggage maker Tumi Holdings and Michael Kors Holding gained after a positive report from Goldman Sachs Equity Research. Tumi was up 4.73 percent, to $21.92, and Michael Kors gained 2.35 percent, reaching $50.92.

The discount retailers Dollar General and Family Dollar declined. Dollar General, down 7.8 percent, to $42.94, said it expected margins to be under pressure in 2013. Family Dollar shares dropped 8.36 percent, to $64.68.

The Treasury is selling its remaining stake in the insurer American International Group. Shares of AIG were up 5.7 percent at $35.26.

The Fed began a two-day policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury bond purchases when the meeting ends on Wednesday. They will replace its Operation Twist stimulus, which expires at the end of the year.

Interest rates were higher. The Treasury’s benchmark 10-year note fell 11/32, to 99 23/32, and the yield rose to 1.66 percent, from 1.62 percent late Monday.

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