Superstorm Sandy clobbers New York City

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  NEW YORK, N.Y. - Superstorm Sandy slammed into the New Jersey coastline and hurled a record-breaking four-metre surge of seawater at New York City on Monday, roaring ashore and putting the presidential campaign on hold a week before election day At least 13 deaths were blamed on the storm.

Sandy knocked out power to at least 5.7 million people, and New York's main utility said large sections of Manhattan had been plunged into darkness by the storm, with 250,000 customers without power as water pressed into the island from three sides, flooding rail yards, subway tracks, tunnels and roads.


Just before its centre reached land, the storm was stripped of hurricane status, but the distinction was purely technical, based on its shape and internal temperature. It still packed hurricane-force wind, and forecasters were careful to say it remained every bit as dangerous to the 50 million people in its path. By late night, the centre of the storm was over southern New Jersey.


The National Hurricane Center announced at 8 p.m. that Sandy had come ashore near Atlantic City. It smacked the boarded-up big cities of the Northeast corridor, from Washington and Baltimore to Philadelphia, New York and Boston, with stinging rain and gusts of more than 85 135 kilometres per hour. The sea surged a record of nearly four metres at the foot of Manhattan, flooding the financial district and subway tunnels.





The 13 deaths were reported in New Jersey, New York, West Virginia, Pennsylvania and Connecticut. Some of the victims were killed by falling trees. Police in Toronto said a woman was killed by a falling sign as high winds closed in on Canada's largest city.


As it made its way toward land, it converged with a cold-weather system that turned into a fearsome superstorm, a monstrous hybrid consisting not only of rain and high wind but of snow. Forecasters warned of six-metre waves bashing into the Chicago lakefront and up to 90 centimetres of snow in West Virginia.


Storm damage was projected at $10 billion to $20 billion, meaning it could prove to be one of the costliest natural disasters in U.S. history.


President Barack Obama and Mitt Romney suspended their campaigning with just over a week to go before election day.


At the White House, Obama made a direct appeal to those in harm's way: "Please listen to what your state and local officials are saying. When they tell you to evacuate, you need to evacuate. Don't delay, don't pause, don't question the instructions that are being given, because this is a powerful storm."


The storm washed away a section of the Atlantic City Boardwalk in New Jersey. Water was splashing over the seawalls at the southern tip of Manhattan.


New York Mayor Michael Bloomberg said late Monday that the worst of the rain had passed for the city, and that the high tide that sent water sloshing into Manhattan from three sides was receding.


Still, authorities also feared the surge of seawater would damage the underground electrical and communications lines in lower Manhattan that are vital to the nation's financial centre.


Water began pooling in rail yards and on highways near the Hudson River waterfront on Manhattan's far west side. On coastal Long Island, floodwaters swamped cars, downed trees and put neighbourhoods under water as beachfronts and fishing villages bore the brunt of the storm. A police car was lost rescuing 14 people from the popular resort Fire Island.


In downtown Manhattan, rescue workers floated bright orange rafts on flooded streets, while police officers with loudspeakers told people to go home.


"Now it's really turning into something," said Brian Damianakes, taking shelter in a bank vestibule and watching a trash can blow down the street in Battery Park.


A construction crane atop a luxury high-rise in midtown Manhattan collapsed in high winds and dangled precariously. Residents in surrounding buildings were ordered to move to lower floors and the streets below were cleared, but there were no immediate reports of injuries.


The facade of a four-storey Manhattan building in the Chelsea neighbourhood crumbled and collapsed suddenly, leaving the lights, couches, cabinets and desks inside visible from the street. No one was hurt, although some of the falling debris hit a car.


The major American stock exchanges closed for the day, the first unplanned shutdown since the Sept. 11 attacks in 2001. Wall Street expected to remain closed on Tuesday. The United Nations cancelled all meetings at its New York headquarters.


Not only was the New York subway shut down, but the Holland Tunnel connecting New York to New Jersey was closed, as was a tunnel between Brooklyn and Manhattan. The Brooklyn Bridge, the George Washington Bridge, the Verrazano-Narrows Bridge and several other spans were closed because of high winds.




Authorities had warned that New York City and Long Island could get the worst of the storm surge: a three-metre onslaught of seawater that could swamp Lower Manhattan, flood the subways and damage the underground network of electrical and communications lines that are vital to the nation's financial capital.


"Leave immediately. Conditions are deteriorating very rapidly, and the window for you getting out safely is closing," New York Mayor Michael Bloomberg told those in low-lying areas earlier in the day.


Defiant New Yorkers jogged, pushed strollers and took snapshots of churning New York Harbor during the day Monday, trying to salvage normal routines.


Without most stores and museums open, tourists were left to snap photos of the World Trade Center site, Wall Street and Times Square in largely deserted streets.


Belgian tourist Gerd Van don Mooter-Dedecker, 56, wandered in to Trinity Church after learning that a planned shopping spree with her husband Monday wouldn't happen. "We brought empty suitcases so we could fill them up," she said.


As rain from the leading edges began to fall over the Northeast on Sunday, hundreds of thousands of people from Maryland to Connecticut were ordered to leave low-lying coastal areas, including 375,000 in lower Manhattan and other parts of New York City, 50,000 in Delaware and 30,000 in Atlantic City, New Jersey.


Obama declared emergencies in Massachusetts, Connecticut, Rhode Island, New York, New Jersey and Pennsylvania, authorizing federal relief work to begin well ahead of time. He promised the government would "respond big and respond fast" after the storm hits.


Off North Carolina, a replica of the 18th-century sailing ship HMS Bounty that was built for the 1962 Marlon Brando movie "Mutiny on the Bounty" went down in the storm, and 14 crew members were rescued by helicopter from rubber lifeboats bobbing in 5.5-metre seas. Another crew member was found hours later and was hospitalized in critical condition. The captain was still missing.

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UN says 28,000 displaced in Myanmar ethnic clashes

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SITTWE, Myanmar (AP) — Myanmar's government said Monday it has boosted security in a western state hit by ethnic and sectarian unrest as the number of displaced rose to 28,000 people, mostly Muslims.

The latest violence between ethnic Rakhine Buddhists and Rohingya Muslims, which began Oct. 21, killed at least 84 people and injured 129 more, according to the government. Human rights groups believe the true toll could be far higher.

A tense calm has held across the region since Saturday, Rakhine state spokesman Myo Thant said.

He said security had been stepped up in the state, with additional police and soldiers deployed, but he declined to give details.

The priority now is to ensure those who lost homes have adequate shelter and food, he said.

U.N. Resident and Humanitarian Coordinator in Myanmar Ashok Nigam said the figure of 28,000 displaced was likely to rise because some people who fled affected areas along the coast by boat have yet to be counted.

An estimated 27,300 of the displaced are Muslims, Nigam said, adding that the U.N. figure was based on statistics from local authorities.

Human Rights Watch has said that the Rohingya have suffered the brunt of the latest violence.

Tensions have simmered in the region since clashes first broke out in June, displacing 75,000 people — also mostly Muslims.

The long-brewing conflict is rooted in a dispute over the Muslim residents' origin. Although many Rohingya have lived in Myanmar for generations, they are widely denigrated as intruders who came from neighboring Bangladesh to steal scarce land.

The U.N. estimates their population in Myanmar at 800,000. But the government does not count them as one of the country's 135 ethnic groups, and so — like neighboring Bangladesh — denies them citizenship. Human rights groups say racism also plays a role: Many Rohingya, who speak a Bengali dialect and resemble Muslim Bangladeshis, have darker skin and are heavily discriminated against.

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Associated Press writer Aye Aye Win reported from Yangon, Myanmar.

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In San Francisco, tech investor leads a political makeover

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SAN FRANCISCO (Reuters) - One morning in April, Ron Conway, the billionaire technology investor, sat in a conference room on the second floor of San Francisco's City Hall with about 50 representatives from the city's business community.


On the agenda was a sweeping proposal by Mayor Ed Lee to reform the city's payroll tax, a plan that would favor companies with many employees but little revenue — tech start-ups, namely — while shifting the burden to the real estate and financial industries.


The head of the San Francisco Chamber of Commerce was arguing against the proposal when Conway abruptly cut him off.


"The tech industry is producing all the jobs in this city," Conway snapped, according to four people present, his voice rising as he insisted that old-line businesses "need to get on board."


In the end, they did get on board — and San Francisco voters on November 6 will decide whether to approve the change in the tax code.


Conway's success with the tax initiative demonstrates the profound transformation playing out in San Francisco's business corridors and its halls of power. As start-ups blossom, attracting a wave of entrepreneurs and investment dollars, the tech industry is wielding newfound clout in local politics — largely thanks to Conway, its brash, silver-haired champion.


The shift, local political experts say, harks back to the turn of the last century, when financial institutions like the Bank of Italy — forebear to present-day Bank of America — gradually eroded the railroad barons' grip over California politics.


Now the tech industry, led by Conway, is beginning to overshadow long-dominant local business lobbies, said Chris Lehane, a political consultant and former adviser in the Clinton White House.


"When you have a new business entity that really hasn't existed in the past and becomes a real player in local politics, that changes the balance a bit," said Lehane, who is based in San Francisco. "People like Ron Conway, he's an angel investor in companies but also an angel supporter of politicians he cares about."


Not everyone in this famously liberal city is enthused about the new tech boom, which is driving up rents and threatening to price out all but the wealthy.


"As someone who lived through the tech boom in the '90s and watched countless friends and community members get pushed out of their homes, only for the bubble to disintegrate, this is painful to watch," said Gabriel Haaland, political director for the SEIU Local 1021, the largest union in the city. "Those times are here again."


Last month, when San Francisco Magazine published an article bemoaning tech-driven gentrification, traffic on the magazine's website broke all records.


"It touched on an issue that people have been thinking about for a while," said Jon Steinberg, the magazine's editor.


Conway and Lee make no apologies.


"Tech added 13,000 out of the 25,000 new jobs we created the last couple years, which helped us bring the unemployment rate to the third-lowest in the state," Lee, a Democrat, said in an interview. "We have to work with the new jobs creators, and that's what I believe the public wants me to do."


Conway, who made his name in the 1990s by betting on small, early-stage companies and scoring a huge win with Google, says a key goal of a new civic organization he has started, San Francisco Citizens Initiative for Technology & Innovation, is to provide service jobs in tech for long-term residents and the unemployed.


"It would be great if we could create a few hundred jobs in the $50,000 to $80,000 income bracket," said Conway. "We're here to improve the living conditions for all of San Francisco. That's the responsibility tech wants to take."


ODD COUPLE


Conway and Lee have an exceptionally close relationship, one that has captivated the city's political set even while attracting accusations of favoritism from the mayor's rivals.


The two make an odd couple. Lee was a publicity-shy city bureaucrat and civil rights lawyer for decades before being named caretaker mayor of this Democratic bastion in 2011 after his predecessor was elected lieutenant governor. Conway, until recently a registered Republican, counts Tiger Woods and Henry Kissinger among his investors and considers a start-up tour with Ashton Kutcher in tow just another day's work.


In a city that faces chronic budget deficits even as it enjoys a comparatively strong economy, the relationship is symbiotic. Conway taps his access to Lee to promote his companies, from Twitter to Zynga to Airbnb; Lee persuades Conway to rally tech leaders to help fund the police, the schools, the parks.


Their alliance began only last year. As interim mayor, Lee impressed Conway when he pushed through a tax exemption for Twitter, which had considered moving out of the city to avoid the tax bill that would have resulted from an initial public offering. San Francisco imposes a 1.5 percent payroll tax on local companies, a levy that applies to any gains in an IPO.


When Lee ran for a full four-year term several months later, Conway formed an independent political action committee on his behalf. He rustled up almost $700,000 from the likes of entrepreneur Sean Parker; Zynga CEO Mark Pincus; Salesforce CEO Marc Benioff; venture capitalists John Doerr and Tom Byers; and Credit Suisse banker Bill Brady.


He also enlisted Portal A, a video production outfit consisting of three twentysomething hitmakers, to create a YouTube video that featured rapper MC Hammer, Yahoo CEO Marissa Mayer and San Francisco Giants pitcher Brian Wilson dancing on Conway's rooftop. The clip went viral and effectively drowned out ads from Lee's rivals.


A year later, Conway rated the mayor's performance a "9.5 out of 10."


"I have a tremendous respect for Mayor Lee," he said. "He listens to people. He builds consensus, and that's an improvement from the past."


Conway said he and Lee are "too busy with our day jobs" to socialize frequently. Neither likes to publicly discuss their relationship. But when the mayor turned 60 in May, Lee and his family sat down for a three-hour private dinner with Conway and his wife, Gayle, at an Italian restaurant in North Beach, according to the San Francisco Chronicle's gossip columnists.


For Conway — whose calls to the mayor's office are considered the highest priority, City Hall insiders say — no issue facing his portfolio companies is too insignificant for him to get involved. In one instance this year, after social media company Pinterest moved to San Francisco, Conway pressed officials to repaint curbs to allow employee parking near the start-up's offices, according to two people with knowledge of the matter. The city refused; Conway denied that the incident occurred.


While some cities have cracked down on services like Airbnb, which lets residents rent out spare bedrooms and can run afoul of local lodging ordinances, Lee has taken the opposite tack. This year he formed a policy-making group to consider how to regulate and foster such companies, which are part of what's known in Silicon Valley as the "sharing economy."


The mayor has also urged Conway to help city initiatives. Conway recently contributed $100,000 toward a campaign to approve bonds to restore the city's parks, and gave $25,000 to a charity founded by Lee that funds impoverished public schools. When a group of software developers tried recently to create an app that would improve public bus performance but lacked funds for a pilot program, SF Citi stepped in and cut a check.


Lee said he hoped Conway would fill a void left by recently deceased philanthropists such as Gap Inc founder Don Fisher, real estate mogul Walter Shorenstein and private equity investor Warren Hellman.


"The tech guys like Conway usually want to meet presidents and such. You never see them play so deep in local government," said one Democratic fundraiser. "It's unusual."


But the tech world says the headlong plunge into local politics is classic Conway.


"When Ron is passionate about an issue or a company or a person, it's never a secret," said Twitter CEO Dick Costolo. "He's passionate about San Francisco right now, and it's exhibiting itself in the way he helps companies in the city, the way he helps the city. It's fantastic to see."


CHANGING TAX POLICY


Conway says his top priority is passage of the payroll tax reform initiative on November 6.


The measure would tax local businesses based on their gross receipts instead of the size of their payroll, which benefits low-revenue, high-headcount companies like startups. Financial, insurance and real estate companies would see their local taxes rise by 30 percent, while taxes will remain flat for most scientific and technical companies.


Crucially, the measure would also mean that proceeds from an IPO would not be subject to taxes.


Landlords, and to a lesser extent financial services companies, conceded that they had lost their first political fight with the tech industry, but took the long view.


"We knew we were going to be socked in a big way, and we worked early and long and hard with the city for a rate that was fair," said Ken Cleaveland of the Building Owners and Managers Association. "In the end it wasn't in our best interest to fight our tenants."


(Reporting by Gerry Shih; Editing by Jonathan Weber, Douglas Royalty and Dale Hudson)


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'Argo' finally tops box office with $12.4M

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LOS ANGELES (AP) — It took three weeks, but "Argo" finally found its way to the top of the box office.

The Warner Bros. thriller from director and star Ben Affleck, inspired by the real-life rescue of six U.S. embassy workers during the 1979 Iranian hostage crisis, made nearly $12.4 million this weekend, according to Sunday studio estimates. "Argo" had been in second place the past two weeks and has now made about $60.8 million total.

Debuting at No. 3 was the sprawling, star-studded "Cloud Atlas," which made a disappointing $9.4 million. The nearly three-hour drama, also from Warner Bros., was co-directed by siblings Lana and Andy Wachowski and Tom Tykwer and features an ensemble cast including Tom Hanks, Halle Berry and Hugh Grant playing multiple roles over six story lines.

Dan Fellman, head of distribution at Warner Bros., said the studio thought there might be a good chance of "Argo" coming out on top this weekend.

"We're thrilled. An accomplishment like that is well deserved, they don't happen very often. You would probably have to do a lot of searching to find a movie that opened in wide release to have two No. 2 weekends in a row and hit No. 1 in the third week," Fellman said. "It's a tribute to the film. Word-of-mouth has taken over the campaign. We have a long way to go, we have a lot of year-end accolades which will approach, and we'll see what happens in terms of the Academy."

On the flip side, Fellman acknowledged that "Cloud Atlas" underperformed compared to hopes that it would end up in the $11-12 million range domestically. The movie had an estimated budget of $100 million. But he pointed out that it had a higher per-screen average than any other film opening in the top 10 with $4,681.

"We did very well on the East and West coasts in a number of major cities," he said. "We're challenged in the Midwest and the South."

It was a soft weekend all around, though, with several newcomers opening poorly, Hollywood.com box-office analyst Paul Dergarabedian pointed out. The horror sequel "Silent Hill: Revelation 3-D" from Open Road Films debuted at No. 5 with $8 million and the Paramount Halloween comedy "Fun Size" arrived in 10th place with just over $4 million. "Chasing Mavericks," an inspirational surfing drama from Fox 2000, didn't even open in the top 12 — it came in at No. 13 with $2.2 million.

The World Series might have been a factor in keeping folks away from the theaters; also, potential moviegoers along the East Coast in the path of Hurricane Sandy might have stayed home this weekend.

"The whole marketplace felt more like September than October. Back in September, we had four down weekends in a row. There was no momentum in the marketplace," Dergarabedian said. "When a holdover is No. 1, it reflects a lack of strength in the marketplace. Every week should have a new movie topping the chart."

As for the philosophical, centuries-spanning "Cloud Atlas," he said: "To have a) a big budget, b) Tom Hanks and c) it's a big, epic film, it doesn't necessarily follow that it's going to be a big box office hit. I admire that they went for it."

But there's hope on the horizon with the animated comedy "Wreck-It Ralph" coming next weekend, the latest James Bond film, "Skyfall," opening Nov. 9 and the final installment in the "Twilight" saga due out Nov. 16. "Skyfall" opened this weekend overseas with a whopping $77.7 million in 25 countries.

"This is just one of those box office weekends we'd rather forget," Dergarabedian said. "Unless you're 'Argo.'"

Estimated ticket sales are for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.

1. "Argo," $12.4 million. ($5 million international.)

2. "Hotel Transylvania," $9.5 million. ($18.1 million international.)

3. "Cloud Atlas," $9.4 million.

4. "Paranormal Activity 4," $8.7 million. ($14.1 million international.)

5. (tie) "Silent Hill: Revelation 3-D," $8 million.

6. "Taken 2," $8 million. ($10.1 million.)

7. "Here Comes the Boom," $5.5 million.

8. "Sinister," $5.07 million.

9. Alex Cross," $5.05 million.

10. "Fun Size," $4.1 million.

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Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:

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1. "Skyfall," $77.7 million.

2. "Hotel Transylvania," $18.1 million.

3. "Paranormal Activity 4," $14.1 million.

4. "The Bourne Legacy," $11.5 million.

5. "Taken 2," $10.1 million.

6. "The Impossible," $8.7 million.

7. "Madagascar 3," $8.4 million.

8. "Asterix et Obelix: Au Service de Sa Majeste," $5.3 million.

9. (tie) "Argo," $5 million.

10. "Ted," $5 million.

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Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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FDA: Pharmacy tied to outbreak knew of bacteria

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WASHINGTON (AP) — Staffers at a pharmacy linked to the deadly meningitis outbreak documented dozens of cases of mold and bacteria growing in rooms that were supposed to be sterile, according to federal health inspectors.

In a preliminary report on conditions at the pharmacy, the Food and Drug Administration said Friday that even when the contamination at New England Compounding Center exceeded the company's own safety levels, there is no evidence that staffers investigated or corrected the problem. The FDA uncovered some four dozen reports of potential contamination in company records, stretching back to January this year.

The report comes from an FDA inspection of the Framingham, Mass.-based company earlier this month after steroid injections made by the company were tied to an outbreak of fungal meningitis. FDA officials confirmed last week that the black fungus found in the company's vials was the same fungus that has sickened 338 people across the U.S., causing 25 deaths.

The New England Compounding Center's lawyer said Friday the pharmacy "will review this report and will continue our cooperation with the FDA."

Compounding pharmacies like NECC traditionally fill special orders placed by doctors for individual patients, turning out a small number of customized formulas each week. They have traditionally been overseen by state pharmacy boards, though the FDA occasionally steps in when major problems arise. Some pharmacies have grown into much larger businesses in the last 20 years, supplying bulk orders of medicines to hospitals that need a steady supply of drugs on hand.

The FDA report provides new details about NECC's conditions, which were first reported by state officials earlier this week. The drug at the center of the investigation is made without preservative, so it's very important that it be made under highly sterile conditions. Compounding pharmacies prepare their medications in clean rooms, which are supposed to be temperature-controlled and air-filtered to maintain sterility.

But FDA inspectors noted that workers at the pharmacy turned off the clean room's air conditioning every night. FDA regulators said that could interfere with the conditions needed to prevent bacterial growth.

Inspectors also say they found a host of potential contaminants in or around the pharmacy's clean rooms, including green and yellow residues, water droplets and standing water from a leaking boiler.

Additionally, inspectors found "greenish yellow discoloration" inside an autoclave, a piece of equipment used to sterilize vials and stoppers. In another supposedly sterile room inspectors found a "dark, hair-like discoloration" along the wall. Elsewhere FDA staff said that dust from a nearby recycling facility appeared to be drifting into the pharmacy's rooftop air-conditioning system.

The FDA on Friday declined to characterize the severity of the problems at NECC, or to speculate on how they may have led to contamination of the products made by the pharmacy. FDA emphasized that the report is based on "initial observations" and that the agency's investigation is ongoing.

The agency also provided new details about the pharmacy's handling of the steroids it recalled last month. The company recalled three lots of steroids made since May that totaled 17,676 single-dose vials of medicine — roughly equivalent to 20 gallons. The shots are mainly used to treat back pain.

According to the agency's report, the pharmacy began shipping vials from the August lot to customers on Aug. 17. That was nearly two weeks before the pharmacy received test results from an outside laboratory confirming the sterility of the drug. When FDA scientists went back and tested the same lot this month, they found contamination in 50 vials.

Outside experts said the report paints a picture of a dysfunctional operation.

"The entire pharmacy was an incubator of bacteria and fungus," said Sarah Sellers, a former FDA officer who left the agency in 2008 after unsuccessfully pushing it to increase regulation of compounding pharmacies. She now consults for drug manufacturers. "The pharmacy knew this through monitoring results, and chose to do nothing."

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East Coast superstorm could endanger 50 million people

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NEW YORK (AP) — From Washington to Boston, big cities and small towns were buttoned up Monday against the onslaught of a superstorm that threatened 50 million people in the most heavily populated corridor in the nation, with forecasters warning that the New York area could get the worst of it — an 11-foot wall of water.

"The time for preparing and talking is about over," Federal Emergency Management Administrator Craig Fugate said Sunday as Hurricane Sandy made its way up the Atlantic on a collision course with two other weather systems that could turn it into one of the most fearsome storms on record in the U.S. "People need to be acting now."

Forecasters said the hurricane could blow ashore Monday night or early Tuesday along the New Jersey coast, then cut across into Pennsylvania and travel up through New York State on Wednesday.

Airlines canceled more than 7,200 flights and Amtrak began suspending train service across the Northeast. New York, Philadelphia, Washington and Baltimore moved to shut down their subways, buses and trains and said schools would be closed on Monday. Boston also called off school. And all non-essential government offices closed in the nation's capital.

The New York Stock Exchange said it will be shut down Monday, including electronic trading. Nasdaq is shutting the Nasdaq Stock Market and other U.S. exchanges and markets it owns, although its exchanges outside the U.S. will operate as scheduled.

As rain from the leading edges of the monster hurricane began to fall over the Northeast, hundreds of thousands of people from Maryland to Connecticut were ordered to evacuate low-lying coastal areas, including 375,000 in lower Manhattan and other parts of New York City, 50,000 in Delaware and 30,000 in Atlantic City, N.J., where the city's 12 casinos were forced to shut down for only the fourth time ever.

"We were told to get the heck out. I was going to stay, but it's better to be safe than sorry," said Hugh Phillips, who was one of the first in line when a Red Cross shelter in Lewes, Del., opened at noon.

"I think this one's going to do us in," said Mark Palazzolo, who boarded up his bait-and-tackle shop in Point Pleasant Beach, N.J., with the same wood he used in past storms, crossing out the names of Hurricanes Isaac and Irene and spray-painting "Sandy" next to them. "I got a call from a friend of mine from Florida last night who said, 'Mark, get out! If it's not the storm, it'll be the aftermath. People are going to be fighting in the streets over gasoline and food.'"

Authorities warned that the nation's biggest city could get hit with a surge of seawater that could swamp parts of lower Manhattan, flood subway tunnels and cripple the network of electrical and communications lines that are vital to the nation's financial center.

Sandy, a Category 1 hurricane with sustained winds of 75 mph as of Sunday evening, was blamed for 65 deaths in the Caribbean before it began traveling northward, parallel to the Eastern Seaboard. As of 2 a.m. Monday, it was centered about 425 miles southeast of New York City, moving to the north at 14 mph, with hurricane-force winds extending an incredible 175 miles from its center.

Gale force winds reported over coastal North Carolina, southeastern Virginia, the Delmarva Peninsula and coastal New Jersey.

Sandy was expected to hook inland during the day Monday, colliding with a wintry storm moving in from the west and cold air streaming down from the Arctic.

Forecasters said the combination could bring close to a foot of rain in places, a potentially lethal storm surge of 4 to 11 feet across much of the region, and punishing winds that could cause widespread power outages that last for days. The storm could also dump up to 2 feet of snow in Kentucky, North Carolina and West Virginia.

Louis Uccellini, environmental prediction chief for the National Oceanic and Atmospheric Administration, told The Associated Press that given Sandy's east-to-west track into New Jersey, the worst of the storm surge could be just to the north, in New York City, on Long Island and in northern New Jersey.

Forecasters said that because of giant waves and high tides made worse by a full moon, the metropolitan area of about 20 million people could get hit with an 11-foot wall of water.

"This is the worst-case scenario," Uccellini said.

New York Mayor Michael Bloomberg warned: "If you don't evacuate, you are not only endangering your life, you are also endangering the lives of the first responders who are going in to rescue you. This is a serious and dangerous storm."

New Jersey's famously blunt Gov. Chris Christie was less polite: "Don't be stupid. Get out."

New York called off school Monday for the city's 1.1 million students and shut down all train, bus and subway service Sunday night. More than 5 million riders a day depend on the transit system.

Officials also postponed Monday's reopening of the Statue of Liberty, which had been closed for a year for $30 million in renovations. The United Nations said it would close Monday and canceled all meetings at its headquarters.

In Washington, President Barack Obama promised the government would "respond big and respond fast" after the storm hits.

"My message to the governors as well as to the mayors is anything they need, we will be there, and we will cut through red tape. We are not going to get bogged down with a lot of rules," he said.

He also pleaded for neighborliness: "In times like this, one of the things that Americans do is we pull together and we help out one another And so, there may be elderly populations in your area. Check on your neighbor, check on your friend. Make sure that they are prepared. If we do, then we're going to get through this storm just fine."

The storm forced the president and Mitt Romney to rearrange their campaign schedules in the crucial closing days of the presidential race. And early voting on Monday in Maryland and the District of Columbia was canceled.

Despite the dire warnings, some people were refusing to budge.

Jonas Clark of Manchester Township, N.J. — right in the area where Sandy was projected to come ashore — stood outside a convenience store, calmly sipping a coffee and wondering why people were working themselves "into a tizzy."

"I've seen a lot of major storms in my time, and there's nothing you can do but take reasonable precautions and ride out things the best you can," said Clark, 73. "Nature's going to what it's going to do. It's great that there's so much information out there about what you can do to protect yourself and your home, but it all boils down basically to 'use your common sense.'"

In New Jersey, Denise Faulkner and her boyfriend showed up at the Atlantic City Convention Center with her 7-month-old daughter and two sons, ages 3 and 12, thinking there was a shelter there. She was dismayed to learn that it was just a gathering point for buses to somewhere else. Last year, they were out of their home for two days because of Hurricane Irene.

"I'm real overwhelmed," she said as baby Zahiriah, wrapped in a pink blanket with embroidered elephants, slept in a car seat. "We're at it again. Last year we had to do it. This year we have to do it. And you have to be around all sorts of people — strangers. It's a bit much."

Before leaving their home in Atlantic City, John and Robshima Williams of packed their kids' Halloween costumes so they could go bunk-to-bunk trick-or-treating at a shelter. Her 8-year-old twins are going as the Grim Reaper and a zombie, while her 6-year-old plans to dress as a witch.

"We're just trying to make a bad situation good," the mother said. "We're going to make it fun no matter where we are."

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Breed reported from Raleigh, N.C.; Contributing to this report were AP Science Writer Seth Borenstein in Washington; Katie Zezima in Atlantic City, N.J.; Wayne Parry in Point Pleasant Beach, N.J.; and Dave Dishneau in Wilmington, Del.

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UN says 22,000 displaced in Myanmar unrest

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SITTWE, Myanmar (AP) — Victims of Myanmar's latest explosion of Muslim-Buddhist violence fled to already packed displacement camps along the country's western coast as a top U.N. official said Sunday the unrest has forced more than 22,000 people from their homes.

Wooden boats carrying some of those on the move arrived outside the state capital, Sittwe. They trudged to the nearby Thechaung camp, a place already home to thousands of Rohingya Muslims who took refuge there after a previous wave of violence in June.

"I fled my hometown Pauktaw on Friday because there is no security at all," said 42-year-old fisherman Maung Myint, who arrived on a boat carrying 40 other people, including his wife and six children. "My house was burned to ashes and I have no money left."

Another Muslim refugee said she fled her village, Kyaukphyu, on Thursday after attackers set her home on fire.

"We don't feel safe," said 40-year old Zainabi, a fish-seller who left with her two sons, aged 12 and 14. "I wish the violence would stop so we can live peacefully."

Human Rights Watch released dramatic satellite imagery of Kyaukphyu on Saturday showing a vast, predominantly Rohingya swath of the village in ashes. The destruction included more than 800 buildings and floating barges.

Myanmar's government has put the death toll at 67 over the last week, saying 95 more people were injured from Sunday through Thursday in seven townships in Rakhine state.

The casualty figures have not been broken down by ethnic group, but Human Rights Watch said the Rohingya had suffered the brunt of the violence. The New York-based rights group also said the true death toll may be far higher, based on witness accounts and the government's history of minimizing news that might reflect badly on it.

Border Affairs Minister Lt. General Thein Htay traveled to the affected areas with the U.N. Resident and Humanitarian Coordinator in Myanmar, Ashok Nigam.

Nigam said 22,587 were displaced and they included both Muslims and ethnic Rakhine Buddhists, but he gave no breakdown.

Some 4,600 homes were also destroyed, according to the U.N, which said in a separate statement that it had begun distributing emergency food and shelter supplies with its humanitarian partners to refugees in urgent need of help.

The latest unrest pushes the total displaced to nearly 100,000 since clashes broke out in June.

Speaking to The Associated Press while visiting Thechaung camp, Nigam said getting aid to the new wave of displaced will be a challenge as some fled on boat and others have sought refuge on isolated hilltops.

"The situation is certainly very grave and we are working with the government to provide urgent aid to these people," he said.

Ill will between Muslims and Buddhists in Rakhine state goes back decades and has its roots in a dispute over the Muslim Rohingya's origins. Although many Rohingya have lived in Myanmar for generations, they are seen as foreign intruders who came from Bangladesh to steal scarce land.

Today, the Rohingya also face official discrimination, a policy encouraged by Myanmar's previous military regimes to enlist popular support among other groups. A 1984 law formally excluded them as one of the country's 135 ethnicities, meaning most are denied basic civil rights and deprived of citizenship.

Neighboring Bangladesh, which also does not recognize the Rohingya as citizens, says thousands of Rohingya refugees have also sought to flee there by boat. Its policy, however, is to refuse them entry.

Rights groups say Myanmar's failure to address the root causes of the crisis means the situation may only get worse.

In June, ethnic violence in Rakhine killed at least 90 people and destroyed more than 3,000 homes. About 75,000 people, mostly Rohingya, have been living in refugee camps since then. Curfews have been in place in some areas since the earlier violence and were extended this past week.

"It is critically important that the government ensures that the rule of law prevails, prevents any further spreading of this violence and continues to communicate strong messages of harmony," Nigam said in a statement later Sunday.

"The violence, fear and mistrust is contrary to the democratic transition and economic and social development that Myanmar is committed to," Nigam said. "It should not become an impediment to progress."

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Associated Press Writer Aye Aye Win in from Yangon, Myanmar and Todd Pitman in Bangkok contributed to this report.

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Star Silicon Valley analyst felled by Facebook IPO fallout

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SAN FRANCISCO (Reuters) - The firing of Citigroup stock analyst Mark Mahaney on Friday in the regulatory fallout from Facebook Inc's initial public offering was greeted with shock and dismay in Silicon Valley, where Mahaney was a well-known and well-liked figure.


"Pretty shocked," was the reaction of Jacob Funds Chief Executive Ryan Jacob, who described Mahaney as one of the most respected financial analysts covering the Internet industry.


"I'd put him at the top. If not at the top, then near the top," said Jacob. "He really knew what to look for."


In addition to firing Mahaney, Citigroup paid a $2 million fine to Massachusetts regulators to settle charges that the bank improperly disclosed research on Facebook ahead of its $16 billion IPO in May.


The settlement agreement said Mahaney failed to supervise a junior analyst who improperly shared Facebook research with the TechCrunch news website. (Settlement agreement: http://r.reuters.com/pyj63t)


The settlement agreement also outlined an incident in which Mahaney failed to get approval before responding to a journalist's questions about Google Inc -- and told a Citigroup compliance staffer that the conversation had not occurred -- even after being warned about unauthorized conversations with the media.


Mahaney declined to comment.


Mahaney got his start in the late 1990s, during the first dot-com boom where he worked at Morgan Stanley for Mary Meeker, one of the star analysts of the time. He went on to work at hedge fund Galleon Group before moving to Citigroup in 2005. Unlike most of his New York-based peers in the analyst world, Mahaney worked in San Francisco's financial district, close to the companies and personalities at the heart of the tech industry.


Earlier this month, Mahaney was named the top Internet analyst for the fifth straight year by Institutional Investor. The review cited fans of Mahaney who praised a "systematic" investment approach that allows him to avoid the "waffling" often evidenced by other analysts.


Mahaney's Buy rating on IAC/InteractiveCorp in April 2011, when the stock traded at $33.32, allowed investors to lock in a 51 percent gain before he downgraded the stock to a Hold at $50.31 a few months later, according to Institutional Investor.


But it wasn't only his stock picks that put him in good stead. He earned kudos for simply being a nice guy.


"He's a kind and thoughtful person and that's evident in the way he deals with people," said Jason Jones of Internet investment firm HighStep Capital. "He's very well liked on Wall Street because of that."


A CAUTIOUS VIEW ON FACEBOOK


Mahaney was only indirectly involved in the incident involving the Facebook research, according to the settlement agreement by Massachusetts regulators released on Friday. But the actions of the junior analyst who worked for him provide an unusual glimpse into the type of behind-the-scenes information trading that regulators are attempting to rein in.


While the Massachusetts regulators did not identify any of the individuals by name, Reuters has learned that the incident involved TechCrunch reporters Josh Constine and Kim-Mai Cutler as well as Citi junior analyst Eric Jacobs.


Jacobs, Constine and Cutler all did not respond to requests for comments.


In early May, shortly before Facebook's IPO, Jacobs sent an email to Cutler and Constine. Constine attended Stanford University at the same time as Jacobs.


Constine, who studied social networks such as Facebook and Twitter for his 2009 Master's degree in cybersociology at Stanford, had a close friendship with Jacobs, according to the settlement agreement.


"I am ramping up coverage on FB and thought you guys might like to see how the street is thinking about it (and our estimates)," Jacobs wrote in the email. The email included an "outline" that Jacobs said would eventually become the firm's 30-40 page initiation report on Facebook.


He also included a "Facebook One Pager" document, which contained confidential, non-public information that Citigroup obtained in order to help begin covering Facebook after the IPO.


Asked by Constine if the information could be published and attributed to an anonymous source, Jacobs responded that "my boss would eat me alive," the agreement said.


A spokeswoman for AOL Inc, which owns TechCrunch, declined to answer questions on the matter, saying only that "We are looking into the matter and have no comment at this time."


Ironically, Mahaney was one of a small group of analysts at the many banks underwriting Facebook's IPO who had cautious views of the richly valued offering. Mahaney initiated coverage of the company with a neutral rating.


Analysts at the top three underwriters on Facebook's IPO - Morgan Stanley, Goldman Sachs and J.P. Morgan - started the stock with overweight or buy recommendations.


Earlier this year, Reuters reported that Facebook had pre-briefed analysts for its underwriters ahead of its IPO, advising them to reduce their profit and revenue forecasts.


Facebook, whose stock was priced at $38 a share in the IPO, closed Friday's regular session at $21.94 and has traded as low as $17.55.


"There were tens of billions of dollars in losses based on hyping the name, a lack of skeptical information and misunderstanding the company," said Max Wolff, chief economist and senior analyst at research firm GreenCrest Capital.


"It's highly unfortunate and darkly ironic that one of the signature regulatory actions from this IPO so far involves punishing analysts for disseminating cautious information about Facebook," he added.


(Editing by Jonathan Weber, Mary Milliken and Lisa Shumaker)


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Madonna booed after touting Obama in La. Concert

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NEW ORLEANS (AP) — Madonna drew boos and triggered a walkout by several concertgoers after she touted President Barack Obama on her "MDNA Tour" in New Orleans.

The Material Girl asked during Saturday night's performance: "Who's registered to vote?" She added: "I don't care who you vote for as long as you vote for Obama." Drawing boos in touting Obama over Republican Mitt Romney, Madonna followed: "Seriously, I don't care who you vote for ... Do not take this privilege for granted. Go vote."

Madonna is often outspoken. Some Colorado fans, mindful of a mass shooting there, complained she used a fake gun to shoot a masked gunman in a recent concert act in Denver. A Madonna concert in Paris in July drew ire when a video showed a swastika on a politician's forehead.

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FDA: Pharmacy tied to outbreak knew of bacteria

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WASHINGTON (AP) — Staffers at a pharmacy linked to the deadly meningitis outbreak documented dozens of cases of mold and bacteria growing in rooms that were supposed to be sterile, according to federal health inspectors.

In a preliminary report on conditions at the pharmacy, the Food and Drug Administration said Friday that even when the contamination at New England Compounding Center exceeded the company's own safety levels, there is no evidence that staffers investigated or corrected the problem. The FDA uncovered some four dozen reports of potential contamination in company records, stretching back to January this year.

The report comes from an FDA inspection of the Framingham, Mass.-based company earlier this month after steroid injections made by the company were tied to an outbreak of fungal meningitis. FDA officials confirmed last week that the black fungus found in the company's vials was the same fungus that has sickened 338 people across the U.S., causing 25 deaths.

The New England Compounding Center's lawyer said Friday the pharmacy "will review this report and will continue our cooperation with the FDA."

Compounding pharmacies like NECC traditionally fill special orders placed by doctors for individual patients, turning out a small number of customized formulas each week. They have traditionally been overseen by state pharmacy boards, though the FDA occasionally steps in when major problems arise. Some pharmacies have grown into much larger businesses in the last 20 years, supplying bulk orders of medicines to hospitals that need a steady supply of drugs on hand.

The FDA report provides new details about NECC's conditions, which were first reported by state officials earlier this week. The drug at the center of the investigation is made without preservative, so it's very important that it be made under highly sterile conditions. Compounding pharmacies prepare their medications in clean rooms, which are supposed to be temperature-controlled and air-filtered to maintain sterility.

But FDA inspectors noted that workers at the pharmacy turned off the clean room's air conditioning every night. FDA regulators said that could interfere with the conditions needed to prevent bacterial growth.

Inspectors also say they found a host of potential contaminants in or around the pharmacy's clean rooms, including green and yellow residues, water droplets and standing water from a leaking boiler.

Additionally, inspectors found "greenish yellow discoloration" inside an autoclave, a piece of equipment used to sterilize vials and stoppers. In another supposedly sterile room inspectors found a "dark, hair-like discoloration" along the wall. Elsewhere FDA staff said that dust from a nearby recycling facility appeared to be drifting into the pharmacy's rooftop air-conditioning system.

The FDA on Friday declined to characterize the severity of the problems at NECC, or to speculate on how they may have led to contamination of the products made by the pharmacy. FDA emphasized that the report is based on "initial observations" and that the agency's investigation is ongoing.

The agency also provided new details about the pharmacy's handling of the steroids it recalled last month. The company recalled three lots of steroids made since May that totaled 17,676 single-dose vials of medicine — roughly equivalent to 20 gallons. The shots are mainly used to treat back pain.

According to the agency's report, the pharmacy began shipping vials from the August lot to customers on Aug. 17. That was nearly two weeks before the pharmacy received test results from an outside laboratory confirming the sterility of the drug. When FDA scientists went back and tested the same lot this month, they found contamination in 50 vials.

Outside experts said the report paints a picture of a dysfunctional operation.

"The entire pharmacy was an incubator of bacteria and fungus," said Sarah Sellers, a former FDA officer who left the agency in 2008 after unsuccessfully pushing it to increase regulation of compounding pharmacies. She now consults for drug manufacturers. "The pharmacy knew this through monitoring results, and chose to do nothing."

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