Israel, Gaza fighting rages on as Egypt seeks truce
















GAZA/JERUSALEM (Reuters) – Israel bombed Palestinian militant targets in the Gaza Strip from air and sea for a fifth straight day on Sunday, preparing for a possible ground invasion though Egypt saw “some indications” of a truce ahead.


Militant rocket fire into Israel subsided during the night but resumed in the morning with three rockets fired at the nearby coastal city of Ashkelon, the Israeli army said.













“As of now we have struck more than 1,000 targets, so Hamas should do the math over whether it is or isn’t worth it to cease fire,” Israeli Vice Prime Minister Moshe Yaalon, over Twitter.


“If there is quiet in the South and no rockets and missiles are fired at Israel’s citizens nor terrorist attacks engineered from the Gaza Strip, we will not attack.”


Forty-eight Palestinians, about half of them civilians, including 13 children, have been killed in Israel’s raids, Palestinian officials said. More than 500 rockets fired from Gaza have hit Israel, killing three people and injuring dozens.


Israel unleashed intensive air strikes on Wednesday, killing the commander of the Hamas Islamist group that governs Gaza and spurns peace with the Jewish state. Israel’s declared goal is to deplete Gaza arsenals and press Hamas into stopping cross-border rocket fire that has plagued Israeli border towns for years.


Air raids continued past midnight into Sunday, with warships shelling from the sea. A Gaza City media building was hit, witnesses said, wounding 6 journalists and damaging facilities belonging to Hamas’s Al-Aqsa TV as well as Britain’s Sky News.


An Israeli military spokeswoman said the strike had targeted a rooftop “transmission antenna used by Hamas to carry out terror activity”.


Two other predawn attacks on houses in the Jabalya refugee camp killed two children and wounded 13 other people, medical officials said.


These attacks followed a defiant statement by Hamas military spokesman Abu Ubaida, who told a news conference: “This round of confrontation will not be the last against the Zionist enemy and it is only the beginning.”


The masked gunman dressed in military fatigues insisted that despite Israel’s blows Hamas “is still strong enough to destroy the enemy”.


An Israeli attack on Saturday destroyed the house of a Hamas commander near the Egyptian border.


Casualties there were averted however, because Israel had fired non-exploding missiles at the building beforehand from a drone, which the militant’s family understood as a warning to flee, and thus their lives were spared, witnesses said.


Israeli aircraft also bombed Hamas government buildings in Gaza on Saturday, including the offices of Prime Minister Ismail Haniyeh and a police headquarters.


Among those killed in air strikes on Gaza on Saturday were at least four suspected militants riding motorcycles, and several civilians including a 30-year-old woman.


ISRAELI SCHOOLS SHUT


Israel said it would keep schools in its south shut on Sunday as a precaution to avoid casualties from rocket strikes reaching as far as Tel Aviv and Jerusalem in the past few days.


Israel’s “Iron Dome” missile interceptor system destroyed in mid-air a rocket fired by Gaza militants at Tel Aviv on Saturday, where volleyball games on the beach front came to an abrupt halt as air-raid sirens sounded.


Hamas claimed responsibility for the attack on Tel Aviv, the third against the city since Wednesday. It said it had fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.


In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.


Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, but there was also a growing number of calls from world leaders to seek an end to the violence.


British Prime Minister David Cameron “expressed concern over the risk of the conflict escalating further and the danger of further civilian casualties on both sides,” in a conversation with Israeli Prime Minister Benjamin Netanyahu, a spokesperson for Cameron said.


London was “putting pressure on both sides to de-escalate,” the spokesman said, adding that Cameron had urged Netanyahu “to do everything possible to bring the conflict to an end.”


Ben Rhodes, a deputy national security adviser to President Barack Obama, said the United States would like to see the conflict resolved through “de-escalation” and diplomacy, but also believes Israel has a right to self-defense.


Egyptian President Mohamed Mursi said in Cairo as his security deputies sought to broker a truce with Hamas leaders, that “there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees.”


Egypt has mediated previous ceasefire deals between Israel and Hamas, the latest of which unraveled with recent violence.


A Palestinian official told Reuters the truce discussions would continue in Cairo on Sunday, saying “there is hope,” but it was too early to say whether the efforts would succeed.


In Jerusalem, an Israeli official declined to comment on the negotiations. Military commanders said Israel was prepared to fight on to achieve a goal of halting rocket fire from Gaza, which has plagued Israeli towns since late 2000, when failed peace talks led to the outbreak of a Palestinian uprising.


Diplomats at the United Nations said Secretary-General Ban Ki-moon is expected to visit Israel and Egypt in the coming week to push for an end to the fighting.


POSSIBLE GROUND OFFENSIVE


Israel, with tanks and artillery positioned along the frontier, said it was still weighing a ground offensive.


Israeli cabinet ministers decided on Friday to more than double the current reserve troop quota set for the Gaza offensive to 75,000 and around 16,000 reservists have already been called up.


Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”


“We have a plan. … It will take time. We need to have patience. It won’t be a day or two,” he added.


A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Netanyahu, favored to win a January election.


The last Gaza war, a three-week Israeli blitz and invasion over the New Year of 2008-09, killed 1,400 Palestinians, mostly civilians. Thirteen Israelis died in the conflict.


But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.


One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s maneuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.


(Writing by Allyn Fisher-Ilan; Editing by Douglas Hamilton)


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RIM to spice BlackBerry 10 AppWorld with local flavors
















WATERLOO, Ontario (Reuters) – Research In Motion is pushing for app quality, not quantity, with its make-or-break BlackBerry 10 devices set for launch on January 30, and targeting applications to customers in various regions.


RIM’s projected 100,000 apps – a record for any new platform at launch – will still be a fraction of those available on Apple Inc or Google Inc devices.













But it is a stronger showing than RIM’s PlayBook tablet computer which was slammed at its 2011 launch for a dearth of apps and incomplete software.


In an interview with Reuters on Wednesday, RIM Chief Executive Thorsten Heins admitted that app libraries play a crucial role in the success or failure of smartphones. But he said the game is not just about numbers.


“The tactic we are deploying is by country and by region. We are aiming to have the most important 200 to 400 apps available, because many applications are regional and they really do have a regional flavor,” Heins said.


RIM says it aims to offer both the most popular applications in the market, and also those most relevant to Blackberry aficionados – people Heins described as hyper-connected multi-taskers who need to get things done.


RIM’s ultra-secure BlackBerry was once the smartphone of choice for government and corporate elites. But rivals have taken giant bites out of RIM’s market share, especially in North America, and the company’s stock has slumped. The BlackBerry remains popular in many emerging markets, partly for its popular BBM messaging system.


With this in mind, RIM has hosted events with developers across the globe.


“We’ve done 30 jam conferences in various cities all around the world, to get the bucket filled with meaningful local apps and not just a huge bunch of applications that you collect and throw at your audience,” he said. “It is a very, very targeted approach.”


Heins, who has met with customers and carriers in a series of whirlwind global tours, came across as relaxed and confident in the interview, in RIM’s Waterloo headquarters.


Speaking rapid fire English with just a hint of an accent from his native Germany, he acknowledged that RIM’s fate may depend on the success of BB10, but he said feedback from clients has been very encouraging.


RIM hopes its new line of BB10 smartphones will help it claw back market share from Apple’s iPhone and devices powered by Google’s Android operating system. Developers say like what they see, but analysts are not convinced that RIM’s gamble on BB10 will succeed.


BIG NAME DRAWS


In terms of numbers, RIM’s app offering will remain far behind the Apple and Google app stores, each of which boast over 700,000 apps. But Heins said he was not worried.


“In my view it is really short-sighted to say, you have 600,000, you have 400,000 and you only have 100,000 apps, so you are not good,” he said.


“Look at how many actually get downloaded. … BlackBerry App World today is still the most profitable portal for application developers – it has the highest number of paid for downloads.”


In a small dig at his rivals, he added: “We don’t have 1,500 Solitaire apps. That is not what Blackberry is about.”


RIM has already said it plans business focused apps from the likes of Cisco WebEx, Box, SAP and Blackboard, as well as music and movie apps like TuneIn, Nobex and Popcornflix and gaming apps from developers like Gameloft, Halfbrick and Paw Print Games.


Heins has said social networks such as LinkedIn, Foursquare, Twitter and Facebook will all have apps for BB10 at launch. But he declined to name any of the other big name apps that RIM will have on board come launch day.


“Allow me to talk to you about this on January 30, otherwise I’m losing a lot of thunder,” he said.


(Editing by Janet Guttsman and Richard Chang)


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Final “Twilight” dawns with $30 million from late-night shows
















LOS ANGELES (Reuters) – Bella and Edward’s big-screen farewell lit up box offices with $ 30.4 million in late-night ticket sales for the finale of the blockbuster “Twilight” vampire series, production studio Summit Entertainment said on Friday.


The U.S. and Canadian box office receipts for “The Twilight Saga: Breaking Dawn, Part 2″ beat initial sales for each of the previous four films in the franchise, though the final installment got a boost from late Thursday night previews.













Last year’s “Breaking Dawn, Part 1″ kicked off with $ 30.3 million from shows just after midnight on the Friday that it debuted, according to figures from Hollywood.com. Summit, a unit of Lions Gate Entertainment Corp, did not provide Friday-only numbers for “Breaking Dawn, Part 2.”


The record for opening-night sales belongs to “Harry Potter and the Deathly Hallows, Part 2,” the finale in the boy-wizard series that grabbed $ 43.5 million when it debuted in July 2011.


Box office watchers say the “Twilight” finale has a shot at setting the franchise record for opening weekend sales when receipts through Sunday are tallied. “The Twilight Saga: New Moon,” released in November 2009, now ranks as the biggest opening in the series, with $ 142.8 million in sales over the first three days after its release in November 2009.


“Breaking Dawn – Part 2″ stars Kristen Stewart, Robert Pattinson and Taylor Lautner in the conclusion of angst-ridden vampire and werewolf love triangle created by author Stephenie Meyer in a series of young adult books. In the final film, wedded vampires Bella and Edward must protect their daughter from an ancient vampire clan.


Opening weekend will get a lift from fans who rush out to see the movie because it is the last film in the popular series, said Paul Dergarabedian, president of the box office division of Hollywood.com. He projects domestic three-day sales will reach $ 145 million to $ 150 million.


“Like ‘Potter,’ the final installment of this will benefit from the cachet of being the last one,” he said.


(Reporting By Lisa Richwine; editing by Andrew Hay)


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Tulsa Town Hall: Nutrition a valuable tool in health care

















Weil spoke as part of the Tulsa Town Hall series of speakers.













The United States has an expensive health-care system that doesn’t produce good results, he said.


“Something is very wrong with this picture,” he said. “We’re spending more and more and we have less and less to show for it.”


Changes in diet can be an effective treatment for many conditions, but American physicians are functionally illiterate in nutrition, he said.


“The whole subject of nutrition is omitted in medical education,” he said.


There are many ways of managing diseases other than drugs, he said. Integrative medicine, which can include dietary supplements and practices like meditation, is the future of health care, he said.


The health system is resistant to change because of entrenched vested interests. That includes pharmaceutical companies that do direct-to-consumer advertising, which should be stopped, he said.


“As dysfunctional as our health-care system is at the moment – and it is very dysfunctional – it is generating rivers of money,” he said. “That money is going into very few pockets.”


Weil has developed an anti-inflammatory diet based on the Mediterranean diet but with Asian influences.


Inflammation is associated with some heart disease, Alzheimer’s disease and some cancers, he said. And as a result, people should be eating real, unprocessed foods and whole grains. They should stay away from sugar-sweetened beverages, including fruit juice, he said.


“The new research that’s being done on sugar is not very comforting,” he said.


The aging process can’t be avoided, but age-related diseases can be avoided by proper care, he said.


“The goal should be to live long and well with a big drop off at the end,” he said.


Weil is the director of the University of Arizona’s Center for Integrative Medicine.


Tickets to the Tulsa Town Hall series are sold as a $ 75 subscription and cover five lectures. Tickets for individual lectures are not available.


To subscribe, visit tulsaworld.com/tulsatownhall, call 918-749-5965 or write to: Tulsa Town Hall, Box 52266, Tulsa, OK 74152.


Future speakers include journalist Ann Compton on Feb. 8; author James B. Stewart on April 5; historian and cinematographer Rex Ziak on May 10.


Original Print Headline: Speaker highlights nutrition



Shannon Muchmore 918-581-8378
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New driver passenger ban ‘mulled’

















Ministers may consider moves to ban young drivers in England and Wales from carrying anyone except family members as passengers, reports suggest.













Transport Secretary Patrick McLoughlin told the Daily Telegraph he was looking at ways of reducing road deaths involving newly-qualified motorists.


Insurers believe peer pressure on young drivers can lead them to take risks.


The Department for Transport says the issue is being considered but there are “no plans” for legislation.


The Association of British Insurers says drivers aged 17-24 are responsible for a disproportionately high number of crashes, deaths and claims.


It says an 18-year-old is more than three times as likely as a 48-year-old to be involved in a crash, and that a third of drivers killed in car accidents were under 25.


That was despite the fact that the under 25s form only one in eight of all car drivers.


In an interview with the Daily Telegraph, Mr McLoughlin said he would consider measures put forward by the ABI which could cut the number of accidents involving young motorists.


Continue reading the main story

Other countries have adopted these measures and their experience has shown that they’re largely self-policing”



End Quote Malcolm Tarling Association of British Insurers


“I read regular reports where three or four young people have been killed in a car, and it’s a new driver, and you wonder what happened,” he told the newspaper.


“When I talk to young people who have recently passed their test, what they say sometimes is that peer pressure is put on them to go fast, to show off.


“They are not anticipating an accident, but something goes wrong. They are not drivers with a huge amount of experience by the very fact of their being new drivers. I think we have got to look at that.


“There is a suggestion as to whether you should look at a restriction whether anyone could carry passengers for six or nine months when they have first passed their test.


“There are suggestions about them only perhaps being allowed to take a family member to drive a car when you are learning, you have to have a qualified driver in the car. So these are all sorts of areas that I think we can look at.”


It comes six weeks after the Association of British Insurers called for an overhaul in the system – suggesting people should spend a year learning to drive and urging the introduction of a graduated licence for the first six months after passing a test.


ABI spokesman Malcolm Tarling denied that a restriction on who young drivers could carry as passengers would be difficult to enforce.


He said: “In terms of policing, you could use that argument for just about anything, really.


“Other countries have adopted these measures and their experience has shown that they’re largely self-policing.


“Of course there will always be people who will look to avoid the law, but the reality is if you impose something like this, and encourage people to follow it, international experience has shown that that is exactly what people do.”


But Neil Greig from the Institute of Advanced Motorists said forcing young motorists to carry only family members with them in the car would not necessarily make them safer drivers.


“Young drivers themselves admit that they are lacking experience, but we don’t believe that restricting people – such as curfews at night and restricting the number of passengers they can carry – is the way to develop that experience.


“They need the opportunities to get to learn, by doing these things, by carrying young people, by going out at night – how else can they learn?”


A Department for Transport spokesman said: “Improving the safety and ability of young drivers is a key priority for the government, which is why we have made the driving test more realistic – and are also considering how to improve training for drivers after they pass their test.


“There are no plans to introduce graduated licensing in England and Wales.


“However, we are working with young people, the insurance industry, and other key partners to identify what more can be done to ensure that newly qualified drivers are properly prepared and drive safely.


“We will consider carefully any ideas that reduce the risks of accidents involving young drivers.”


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Canadian October home sales dip, latest sign of cooling
















TORONTO (Reuters) – Sales of existing homes in Canada fell in October from September and year-over-year sales were down as well, the Canadian Real Estate Association said on Thursday in the latest signal that the housing market is slowing.


The industry group for Canadian real estate agents said sales were down 0.1 percent in October from September. Actual sales for October, not seasonally adjusted, were down 0.8 percent from a year earlier.













The housing market, which roared higher in 2011 and the first half of 2012, started to slow after the government tightened rules on mortgage lending in July in a bid to cool the market and prevent home buyers from taking on too much debt.


Housing market trends in Canada for 2012 can be characterized as before and after regulatory changes,” TD Economics senior economist Sonya Gulati said in a research note.


“In the first half of the year, sales and price gains were modest, but positive. More stringent mortgage rules and tighter mortgage underwriting rules have ‘purposely’ knocked the wind out of the housing market sails,” she said.


The home sales data showed diverging paths in Canadian housing depending on location. In Toronto and Vancouver, where sales and price gains were red hot in 2011 and early in 2012, the market has been cooling. But markets in the resource-rich western provinces of Saskatchewan and Alberta have been gaining strength.


“Opinions differ about how sharply sales have slowed depending on the local housing market,” Gregory Klump, CREA’s chief economist, said in a statement.


Led by Calgary, sales in October were up from a year earlier in almost two-thirds of local markets. Sales remained blow year-earlier levels in Toronto, Vancouver and Montreal, CREA said.


“These results suggest that the Canadian housing market overall has returned to a more sustainable pace,” Klump said.


CREA’s Home Price Index rose 3.6 percent in October from a year earlier, the sixth consecutive month in which gains in prices slowed, and the slowest rate of increase since May 2011.


While tighter mortgage rules have worked to slow the market, TD’s Gulati said the big question is what will happen when that temporary cooling effect wears off in early 2013.


“What happens thereafter is less certain. The low interest rate environment could pull homeowners back onto the market, causing home prices to once again trek upwards. Alternatively, an absence of pent-up demand may leave the market in a bit of a lull until interest rate hikes resume in late 2013,” she wrote.


“Under either scenario, it is safe to say that there is a low probability of out-sized home price gains over the near-term.”


A total of 402,322 homes traded hands via Canadian MLS systems over the first 10 months of 2012, up 0.8 percent from the same period last year and 0.4 percent below the 10-year average for the period, the data showed.


The number of newly listed homes fell 3.8 percent in October following a jump in September. Monthly declines were reported in almost two-thirds of local markets, with Toronto and Vancouver exerting a large influence on the national trend.


Nationally, there were 6.5 months of inventory at the end of October, little changed from the reading of 6.4 months at the end of September.


(Editing by Peter Galloway)


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Sina banks on Weibo but weak fourth quarter guidance spooks investors
















(Reuters) – Chinese Internet company Sina Corp said its fourth quarter will be hit by a softer economy and posted weaker-than-expected sales guidance, despite a stronger revenue contribution from its hot microblogging platform Weibo.


Shares in Sina fell 7 percent after it forecast adjusted net revenue of $ 132 million to $ 136 million in the current quarter, below analysts’ expectations for $ 151.9 million according to Thomson Reuters I/B/E/S.













Sina, which makes most of its revenue from online advertising both on its website and Weibo, is facing stiff headwinds as firms slash advertising budgets due to a worsening economic outlook.


“We are going to see a weaker quarter for advertising overall in the fourth quarter,” said Charles Chao, Sina’s chief executive on an earnings conference call. The firm forecast Q4 advertising revenues would rise 6-8 percent from a year earlier.


Chao said Weibo contributed 16 percent to total revenue in the third quarter, up from 10 percent in the previous quarter. The platform, which is very popular with white-collar workers, university students and celebrities, had 424 million registered users at the end of the quarter, up from 368 million three months earlier.


Advertisers, like luxury brands, that traditionally don’t advertise with Sina’s main portal website flocked to Weibo to test out the social platform, Chao said.


There were about 230,000 Weibo advertising accounts in the quarter, and Sina was in the process of rolling out a online payment system and new Weibo advertising product to increase monetization at the end of the fourth quarter.


“We believe a ‘promoted feed advertising’ will become one of the major forms of (Weibo) advertising going forward,” said Chao, adding that the product will be effective also on mobile platforms, allowing Sina to tap into Weibo’s growth on mobile devices.


Q3 PROFIT BEAT


For the third quarter, Sina’s net profit was $ 9.9 million compared with a loss of $ 336.3 million a year earlier, and slighly ahead of analysts’ expectations of $ 7.5 million.


Sina’s quarterly advertising revenue rose 19 percent to $ 120.6 million, while non-advertising revenue rose 9 percent to $ 31.8 million.


The company started monetizing Weibo by offering special services to business accounts and selling VIP memberships to regular users earlier this year.


For its mobile-value-added-services business, Sina said it expects revenue to continue to decline due to new regulatory policies.


The company was also affected by a spat between Japan and China over islands in the East China Sea as Japanese automakers cut back on advertising in China. Chao said he expected the impact to last into the fourth quarter.


“It did have an impact on our third quarter as well as our fourth quarter. We did see cancellations from customers related to Japanese automobiles in the month of September and it impacted the fourth quarter (too),” Chao said.


Sina shares fell 6.74 percent to $ 49.52 in extended trading. They closed at $ 53.10 on the Nasdaq on Thursday.


(Additional reporting by Aurindom Mukherjee in Bangalore; Editing by Sriraj Kalluvila and Richard Pullin)


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Juanes, Jesse & Joy take home top Latin Grammys
















LAS VEGAS (Reuters) – Colombian rocker Juanes and the Mexican brother and sister pop duo Jesse & Joy took home the top Latin Grammys on Thursday in Las Vegas on a night in which the contemporary triumphed over the traditional.


Juanes, one of the most well known Latin American stars worldwide, won the coveted album of the year with his “MTV Unplugged,” which also won best long-form video. Dominican singer and songwriter Juan Luis Guerra won producer of the year for Juanes‘ album.













“Here’s to the maestro Juan Luis Guerra for making this possible,” said Juanes, 40, who now has won 19 Latin Grammys, tying him with reggaeton group Calle 13 for the most awards.


Guerra, who made the romantic Bachata music famous and is known to sweep the awards from the Latin Academy of Recording Arts and Sciences, led the nominations with six nods this year. But he lost out on the big awards for record and song of the year with his “En El Cielo No Hay Hospital” (In Heaven There Is No Hospital).


Those two awards went to “Corre!” (Run!) by Jesse & Joy, the duo from Mexico City who won best new artists in the same Las Vegas venue in 2007. Their third studio album Con Quien Se Queda El Perro? (Who Is The Dog Staying With?) lost out on album of the year, but won best contemporary pop vocal album.


“Viva Mexico!,” said Jesse upon accepting record of the year, a phrase repeated several times by winners at the 13th edition of the Latin Grammys Thursday night.


Like Jesse & Joy five years earlier, Mexican pop group 3BallMTY won best new artists with their musical style known as “tribal guarachero,” a mix of Mexican cumbia and electronic dance music.


The trio, barely beyond their teenage years, found success on both sides of the U.S.-Mexico border with their debut album “Intentalo” (Try It). They dedicated their Latin Grammy to Mexican DJs.


Mexico’s Carla Morrison won best alternative music album with “Dejenme Llorar” (Let Me Cry). Wearing a red dress and sporting multiple tattoos on her arms, she let loose an expletive on the live broadcast after crying out “Viva Mexico!”


Among the top performances of the night were Juanes playing with veteran guitarrist Carlos Santana. The show opened with Miami-born rapper Pitbull, who sings in both English and Spanish.


Brazilian singer and songwriter Caetano Veloso was honored as the Latin Recording Academy‘s person of the year in a ceremony on Wednesday. A founder of the 1960s musical movement known as Tropicalia, Veloso continues to to be one of Brazil’s most popular and innovative artists at 70 years of age.


(Writing by Mary Milliken; Editing by Lisa Shumaker)


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Pfizer’s once-daily Lyrica trial fails to meet goal
















(Reuters) – Pfizer Inc said on Friday a late-stage trial of a once-a-day formulation of its drug pregabalin did not significantly reduce the frequency of some types of seizures in patients with epilepsy.


The drug, sold under the brand name Lyrica, is currently used to treat epilepsy when given several times a day in combination with other drugs.













Pfizer said the lack of a statistically significant improvement may have been due to a higher-than-expected response among patients taking the placebo.


The trial was the first of three trials testing the drug as a once-a-day therapy. The company is also testing it in patients with fibromyalgia and some types of nerve pain, for which it is also approved in its immediate-release formulation.


(Reporting By Toni Clarke; Editing by Gerald E. McCormick)


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China’s commerce minister voted out in rare congress snub: sources
















BEIJING (Reuters) – China‘s commerce minister was surprisingly blocked from a spot on the ruling Communist Party’s elite body during a conclave this week, sources said, a rare snub for an official that could raise questions about trade policies during his tenure.


The failure of Chen Deming to secure a seat on the 25-member Politburo marks one of the few surprises to emerge from the party’s five-yearly congress that wrapped this week with the anointing of a new slate of top leaders who will run the world’s second largest economy.













It is also the first time in more than two decades that an official designated for a Politburo spot has been voted out of the party’s 205-member Central Committee in elections. Central Committee membership is a prerequisite for a Politburo seat.


“Chen Deming was voted out during multi-candidate elections to the Central Committee,” one source told Reuters. State news agency Xinhua said there were eight percent more candidates than seats in a preliminary vote before the formal election on Wednesday.


Not being name as an alternate or full member during the party’s 18th congress means Chen, who was previously an alternate member, is almost certain to step down as commerce minister next March. Party regulations require cabinet ministers to be Central Committee members.


It is unclear why Chen, who was seen as a strong candidate for a vice premiership and at 63 is young enough to serve another five-year term under party rules, did not secure the votes for a seat on the Central Committee.


Tianjin Mayor Huang Xingguo, 58, who was elected a full member of the Central Committee, is front-runner to replace Chen as commerce minister, two sources with ties to the leadership said.


Ma Kai, 66, secretary general of the State Council, or cabinet, is tipped to become a vice premier now that Chen is out of the running, the sources said, requesting anonymity to avoid repercussions for discussing secretive elite politics.


Until now, a politician designated to become a Politburo member has not been barred from the Central Committee since 1987, when Deng Liqun, an ultra-conservative and reviled Marxist ideologue, was voted out at the 13th congress in a deeply embarrassing fall from grace.


Chen’s imminent retirement as commerce minister, a post he has held since taking over from now disgraced politician Bo Xilai in late 2007, would come as China faces growing tension with major trade partners in Europe and the United States and Chinese officials warn of increasing protectionism.


China’s leaders set a goal for 10 percent export growth this year, but it is more likely to come in at around 7 percent as the world has struggled to recover from financial crisis.


DEFENDED RECORD


Some experts suggest that Chen’s age was the main factor in his ouster.


“Minister Chen didn’t get onto the Central Committee because of his age. He was born in 1949 and that makes him too old to serve a full term,” said a Commerce Ministry official who declined to be identified.


But exceptions to the mandatory retirement age of 65 are often made for cabinet ministers and provincial governors and politicians can become a vice premier before they turn 68.


Du Qinglin, 66, a vice chairman to parliament’s advisory body, was just elected to the Central Committee.


At a news conference last week on the sidelines of the congress, Chen declined to answer questions about whether he was being considered for a vice premier post, but he defended the ministry’s record at the World Trade Organisation.


“When you consider the volume of trade cases in which China is involved, we’ve won quite a few,” Chen said. “But we haven’t bragged about our wins, whereas some of our foreign colleagues have trumpeted theirs.”


Analysts said Chen had a reputation as a competent and moderate minister, suggesting his performance may not have been at the center of his failure to secure a central committee seat, and despite the questions that are bound to arise, policy would probably not change.


“China’s overall trade policy is not set by the ministry, but by the central government,” said He Weiwen, director of the China-U.S. Trade Research Centre at the University of International Business and Economics in Beijing.


Under Chen, the ministry has increased its use of WTO legal processes, in part to gain experience. China has a relatively short history of participating in multilateral institutions and while it has lost most of WTO cases filed against it, most countries defending against complaints have the same problem.


Scott Kennedy, director of the Research Centre for Chinese Politics and Business at Indiana University said Chen’s departure from the Central Committee was puzzling and political motives could be at play.


“I don’t think he could be punished for his record as minister of commerce. I think overall he’s done a pretty decent job with the hand he has been dealt,” Kennedy said.


(Additional reporting by Lucy Hornby and Nick Edwards; Editing by Robert Birsel)


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