BlackBerry Z10 with AT&T-compatible LTE uncovered ahead of January unveiling

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Hollywood tops Chinese film market in 2012, first time in four years

SHANGHAI (Reuters) – China‘s 2012 box office was dominated by foreign films for the first time in four years as a deal cemented earlier this year saw more Hollywood film screened on the mainland, squeezing out domestic competition.

China’s box office receipts are expected to reach 16.8 billion yuan ($ 2.7 billion) in 2012 and about 8 billion yuan ($ 1.28 billion), or slightly less than half the receipts, are from domestic films, the official People’s Daily reported on Monday, quoting estimates from the State Administration of Radio, Film and Television.

It is the first time in four years that domestic film receipts totaled less than 50 percent of the market and signals that the February trade agreement to allow more Hollywood movies to be screened in China is having a significant impact on the country’s movie industry.

Last year, domestic films made up 54 percent of box office receipts, down slightly from 56 percent in 2010, local media reported. China agreed in February to open its market to more American movies, permitting 14 premium format films such as IMAX or 3D to be exempt from the annual 20 foreign film quota.

Last month, Tian Jin, China’s vice minister of the State Administration of Radio, Film and Television, said the U.S. film industry was reaping massive profits due to the February concession while domestic producers were under pressure.

However, the best-selling film this year is a low-budget, domestically-produced comedy called “Lost in Thailand” about two rival businessmen. The movie drew a bigger audience in China than James Cameron’s “Avatar”, the People’s Daily said.

($ 1 = 6.2335 Chinese yuan)

(Reporting by Melanie Lee; Editing by Matt Driskill)

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FDA new drug approvals hit 16-year high in 2012

LONDON/NEW YORK (Reuters) – U.S. regulators approved 39 new drugs in 2012, the most in 16 years, suggesting that pharmaceutical makers are poised for growth after losing billions of dollars in recent years to generic drug makers because of patent expirations.

There were eight approvals in December alone, including a new treatment from Johnson & Johnson called Sirturo for drug-resistant tuberculosis approved on Monday, the first new TB drug in decades.

The pharmaceutical sector badly needs a pick-up in productivity as companies try to refill their medicine chests after heavy losses to generic manufacturers, which have benefited from a string of patent expirations that peaked in 2012. When generics go on the market at a lower cost, sales of name brand drugs plummet.

The tally of 39 new drugs and biological products approved by the Food and Drug Administration compares with 30 in 2011 and just 21 in 2010. At least 10 of the drugs had fast track status in 2012, which enabled them to be reviewed more quickly.

It is the highest number since 1996, when 53 so-called new molecular entities won a green light. For a graphic on new drugs approvals see: http://link.reuters.com/nuz84t

The FDA has met and exceeded its drug review goals under the Prescription Drug User Fee Act, in which drug companies help fund the drug approval process in return for an agreement by the Food and Drug Administration to meet regulatory deadlines, FDA spokeswoman Sandy Walsh said in an e-mailed statement.

She said the “pipeline of new drugs under development remains strong and is growing.”

Major U.S. drug companies have lost about $ 21 billion in revenue this year from lucrative medicines coming off patent, while the hit for European businesses is about $ 10 billion, according to ratings agency Standard & Poor’s.

This year’s expirations have included Plavix, a heart drug made by Sanofi and Bristol-Myers Squibb, and Seroquel, an antipsychotic made by AstraZeneca.

Winning approval from regulators, however, is only part of the battle for drugmakers.

Investors will also be watching closely to see how the new drugs perform commercially once they reach the market, since securing payment for innovative medicines is an increasingly tough fight.

“The patent exposure will be less going forward, but where there is still a little bit of uncertainty is how much better the pipelines have become and how strong the recently approved products are,” said Damien Conover, the director of pharmaceutical research at research firm Morningstar Inc.

The 2012 approvals included some medicines that are forecast by analysts to become multibillion-dollar sellers, such as Eliquis for reducing stroke risk in patients with irregular heartbeats from Bristol Myers-Squibb and Pfizer Inc.

But many others are for rare diseases, underscoring the drug industry’s increased focus on specialized, niche products.

They include treatments such as a Kalydeco from Vertex Pharmaceuticals Inc for a rare form of the lung disorder cystic fibrosis and Signifor from Novartis AG for Cushing’s disease, caused by over-production of the hormone cortisol.

The last drug approval of the year on Monday afternoon was for a drug to relieve symptoms of diarrhea in patients with HIV and AIDS made by Salix Pharmaceuticals Ltd.

There are also encouraging signs that the pick-up in new drug approvals could continue in 2013. The European Medicines Agency said on December 18 that it expected 54 new drug applications in 2013, up from 52 in 2012, 48 in 2011 and 34 in 2010.

(Editing by Jilian Mincer and Steve Orlofsky)

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Insight: How Colombian drug traffickers used HSBC to launder money

(Reuters) – When several Colombian men were indicted in January 2010 on money-laundering charges, the case in Brooklyn federal court drew little attention.

It looked like a bust of another nexus of drug traffickers and money launderers, with mainly small-time operatives paying the price for their crimes.

One of the men was Julio Chaparro, a 48-year-old father of four who owned three factories that made children’s clothing in Colombia.

But to U.S. authorities the case was anything but ordinary. Chaparro, prosecutors alleged, helped run a money-laundering ring for drug traffickers that took advantage of lax controls at UK-based international banking group HSBC Holdings Plc. It was one of the most important leads for U.S. investigators pursuing a case against the bank that eventually led to a $ 1.9 billion settlement on December 11.

Chaparro was “basically putting the orchestra together” and investigators saw “him as a major player in terms of cleaning a lot of money,” said James Hayes, special agent in charge of Homeland Security Investigations at U.S. Immigration and Customs Enforcement in New York. Known as ICE, the agency and its task force led the probe.

The Colombian’s lawyer, Ephraim Savitt, said Chaparro was a middleman in the operation, but disputed the extent of his client’s role, saying he was the “page turner of sheet music for the conductor.”

Chaparro, who was arrested in Colombia in 2010 and extradited to the United States in 2011, pleaded guilty to a money-laundering conspiracy count in May and is awaiting sentencing in 2013.

An HSBC spokesman declined comment.

Much about the trail that drug traffickers used to move U.S. dollars – the proceeds from drug sales – through HSBC and other banks remains unclear. By design, the process is layered to evade detection.

But a review of confidential investigative records that originate from two U.S. Attorney office probes and federal court filings in New York and California, as well as interviews with senior law-enforcement officials, shows how investigators tracing the activities of people who allegedly worked with Chaparro were able to expose large-scale money laundering at one of the world’s biggest banks.

The federal law-enforcement task force – named after El Dorado, the mythical city of gold in South America – used wire taps, email and computer searches, information from at least one inside source, and old-fashioned surveillance, to piece together the ring’s operations.

SMUGGLED ACROSS BORDER

Drug cartels sold narcotics in the United States and routed the cash to Mexico, often using couriers to smuggle it across the border. That cash would then be put into bank accounts at HSBC‘s Mexico unit, where large deposits could be made without arousing suspicion, according to U.S. Department of Justice documents.

In one filing, U.S. prosecutors said, Chaparro and others allegedly utilized accounts at HSBC Mexico to deposit “drug dollars and then wire those funds to … businesses located in the United States and elsewhere. The funds were then used to purchase consumer goods, which were exported to South America and resold to generate ‘clean’ cash.”

In a typical transaction, a middleman in a drug cartel would offer to deliver consumer goods, such as computers or washing machines, to Colombian businesses on favorable terms. Another person in the United States would buy the goods from firms using funds from drug trafficking, and fulfill those orders.

Money launderers exploited the laxness of HSBC in policing shadowy money flows, the Department of Justice said earlier this month. Failures included not conducting due diligence on customers, not adequately monitoring wire transfers or cash shipments and not having enough employees to run anti-money laundering systems. U.S. Assistant Attorney General Lanny Breuer called the lapses “stunning failures of oversight.”

The situation was so bad, according to the Department of Justice, that in 2008, the head of HSBC‘s Mexican operations was told by Mexican regulators that a local drug lord described the bank as “the place to launder money.”

The Chaparro probe, led by ICE and the Justice Department, converged over the past two years with two other investigations – led by federal prosecutors and investigators in West Virginia and by the Manhattan district attorney – resulting in this month’s settlement with HSBC.

HSBC and its employees avoided criminal indictments, as the bank agreed instead to a deferred-prosecution deal that forces it to strengthen controls and accept a compliance monitor.

Today, Chaparro sits in a federal detention center in Brooklyn, reading the Bible and awaiting sentencing, said Savitt, a former U.S. prosecutor in Brooklyn, who submitted a list of questions to Chaparro for Reuters.

“He is contrite, regretful and ashamed about his crimes,” Savitt said. “He wants to serve his time and rejoin his family. He understands that a prison term could prevent that from happening for many years.”

Under federal guidelines, he could face 15 to 18 years in prison.

ON CHAPARRO’S TRAIL

The El Dorado federal task force, based in a building on the west side of Manhattan near Chelsea Piers, serves as an umbrella organization for some 250 law-enforcement officials from state, local and federal agencies.

One of the task-force supervisors is Lieutenant Frank DiGregorio, a former New York detective who spent years tracking the so-called Black Market Peso Exchange, which is used to convert dollars to Colombian pesos through trading in goods. DiGregorio along with two younger investigators – Graham Klein and Carmelo Lana – led the HSBC case.

The overall probe began in 2007 when investigators analyzed how courier companies ferried cash through airports in Miami and Houston, a person familiar with the case said. They ultimately tracked that to HSBC‘s operations in Mexico and then connected it to funds moving through New York.

A tipping point in the investigation came in 2009 when El Dorado agents arrested a man named Fernando Sanclemente. Two sources familiar with the case say Sanclemente was an operative in Chaparro’s network.

Sanclemente, who was charged with allegedly conducting financial transactions tied to narcotics trafficking, is free on bail with a $ 200,000 bond, according to the latest court docket entry, which dates to January 2012. His lawyer, James Neville, declined to discuss the status of the case.

According to a criminal complaint filed against him by Lana, the El Dorado agent, on June 30, 2009, task force agents followed Sanclemente for more than two hours as he drove around Queens in New York to ferry cash from drug sales.

Sanclemente first met with a person for about “30 seconds” on one street corner, and left with a yellow plastic bag. Later that night, he drove to a Dunkin’ Donuts near LaGuardia Airport, where a black livery cab pulled up and the driver handed him a black bag.

The El Dorado team followed Sanclemente to Laurel Hollow, New York, some 40 minutes away, where the investigators stopped and searched him, finding about $ 153,000 in the two bags. At Sanclemente’s apartment, investigators said they found ledgers and documents consistent with money laundering.

With the arrest, investigators gained insight into Chaparro’s alleged transactions. At one point, investigators set up undercover bank accounts where they were able to get Chaparro’s network to wire proceeds that could be traced back to HSBC‘s Mexico operations, according to people familiar with the situation and a Department of Justice filing in the HSBC case.

Federal agents would ultimately home in on $ 500 million that had moved from HSBC Mexico to HSBC‘s operations in the United States, according to the confidential investigative records.

Between October 6, 2008 and April 13, 2009, Chaparro and others conducted money laundering transactions totaling $ 1.1 million tied to narcotics trafficking, the indictment against Chaparro alleged.

(Reporting By Carrick Mollenkamp and Brett Wolf of the Compliance Complete service of Thomson Reuters Accelus; Additional reporting by Tomas Sarmiento Cordero in Mexico City and Aruna Viswanatha in Washington; Editing by Paritosh Bansal and Martin Howell)

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Ms. Mac: ‘Cute, Awkwardly Dressed’

Designer: PabloDeLaRocha.com, BlueStacks

She has freckles, a normal-sized head, wears t-shirts and jeans. She is also “awkwardly dressed” and “pretty cute.” She is the average female Mac user, according to an infographic complied and released by software start-up BlueStacks.

The company, which makes software that allows Android apps to run on computers, just released a new version of its Mac app. Install the program and you can access Android apps right from Apple’s OS X operating system – Angry Birds, Instagram, all your favorites.

But the company didn’t want to just release the software. In honor of the announcement, it created an infographic based on data from its Facebook users about what Ms. Mac looks like.

According to the graphic, which you can view below, 27 percent of female Mac users have long hair, 48 percent wear glasses and 52 percent are under 20. Forty percent use Mac OS X Lion, 14 percent OS X Mountain Lion, 20 percent OS X Leopard, and 8 percent Snow Leopard.

However, you should take these findings with a grain of salt; they are based primarily on responses from BlueStacks’ 1.1 million Facebook fans. Some of it is based on data from Nielsen, but BlueStacks confirmed that the majority of the information was pulled from its own users and its social media fans.

“We have a lot of early adopter fans who were into helping,” BlueStacks VP of marketing, John Gargiulo, told ABC News. “We also hired a data scientist who has been parsing through the data and talking with people who use BlueStacks. We like to do things that are a bit fun and different.”

BlueStacks created a similar infographic about Android users last year. Not surprisingly, 70 percent of male Android users wear t-shits and 62 percent wear jeans. (It’s like that line from that ’90s movie “Can’t Hardly Wait”: “He is sort of tall, with hair and wears t-shirts sometimes.”)

Regardless, if you’re looking for a fun infographic / full body image of the alleged Ms. Mac 2012, you can click the image below.

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UK “X Factor” winner regains top chart spot

LONDON (Reuters) – James Arthur, winner of this year’s British version of the “X Factor” TV talent show, saw his debut single climb back to number one in the British pop charts on Sunday.

Arthur’s “Impossible” shot straight to the top earlier this month but was overtaken last week by a tribute song to the victims of the 1989 Hillsborough football stadium disaster, “He Ain’t Heavy, He’s My Brother”, a version of the ballad that was a worldwide hit for The Hollies.

That song has now slipped to fifth position, according to the Official Charts Company listings.

“Scream and Shout” by will.i.am, featuring Britney Spears, stayed at two while Psy’s monster video hit “Gangnam Style” was up three places to third.

In the album charts, British singer Emeli Sande stayed top with “Our Version Of Events”, with Olly Murs‘ “Right Place, Right Time” unchanged at two.

Rihanna was up three places to third with “Unapologetic”.

(Reporting by Stephen Addison; Editing by Alison Williams)

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Every school needs a doctor, pediatricians say

NEW YORK (Reuters Health) – Despite no federal or uniform state requirements to do so, all school districts should have a doctor to oversee school health services, according to a policy statement from a group of American pediatricians.

“Our hope is that a policy statement like this will start to get people talking,” said Dr. Cynthia Devore, a co-author of the statement from the American Academy of Pediatrics (AAP).

“New York – and the northeast in general – tends to spell out in legislation that school districts shall hire a medical director to oversee health services,” she told Reuters Health. “That’s ideal. It should be legislated, but not every state does that,” said Devore, a board-certified pediatrician in Rochester, New York.

The statement published in the journal Pediatrics on Monday encourages pediatricians to “advocate that all school districts should have a school physician” and their roles should be “well defined, fairly compensated and outlined in a written contract.”

Basically, Devore said, the group recommends having a doctor in every school district and a nurse in every school.

The American Medical Association also recommends that all schools have a nurse to provide healthcare and have a doctor available on a regular basis.

School doctors are not a new concept. In fact, the statement says, they have been around since the 1800s, and Devore said they are one of the oldest groups within the AAP.

But the roles of school doctors depend on the school district’s needs.

“Some physicians are hired by schools and have full-time jobs… Some physicians might be a consultant,” said Devore.

In addition to being full- or part-time employees and consultants, the statement says doctors can play a role as an independent contractor or a volunteer on a school health advisory group.

Ideally, the doctor should have an expertise in pediatrics or be a board-certified pediatrician, according to the statement.

The group says it’s critical the doctors know about, among other things, disease outbreak control, risk management, immunizations and sports medicine.

Previous studies have found that having a school doctor is linked to better attendance for some students, especially those with chronic health conditions like asthma.

“Because states fund schools on a basis of student attendance, a school physician can potentially save schools money by decreasing absenteeism through advocacy and education,” the statement says.

It also suggests doctors can save school districts money by preventing costly litigation through better health services and protocols.

“Unfortunately when budgets are tight, money is short and education jobs are at risk, some people view health services as an expendable cut, and we don’t see it that way,” Devore said.

SOURCE: http://bit.ly/HjQ8dI Pediatrics, online December 31, 2012.

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Behind the Bidding War For a Gene Sequencing Firm

In June, Complete Genomics (GNOM), the struggling maker of the world’s most accurate gene-sequencing machine, put itself up for sale. Nothing happened initially. Analysts predicted the company would soon need to wind down operations.

Cut to December. A pair of genomics superpowers, China’s BGI and San Diego-based Illumina (ILMN), have suddenly made competing bids to buy Complete, and politicians and regulators want to weigh in on its future. The question is whether foreign ownership might create a national security threat to the U.S. “This budding research area has the opportunity to really advance the development of bioweapons,” says Michael Wessel, a member of the U.S.-China Economic and Security Review Commission, which reports to Congress. He’s concerned that Complete will “advance China’s capabilities in that area beyond what they already have.”

Founded in 2005, Complete has offices in a sedate office park across the street from Google (GOOG) in Mountain View, Calif. It makes a machine that can decode strands of DNA, but unlike most of its rivals offers a sequencing service instead of selling the machine to customers. In its most recent quarter, Complete posted revenue of $ 7.3 million and a net loss of $ 18 million.

Complete’s machines stand out for their ability to accurately sequence entire human genomes, instead of just portions of a person’s DNA. That’s much needed in clinical settings where physicians want to know for sure whether a patient has a particular illness. Complete also has been able to amass a large database of precise genomic information. Finding patterns among that data, comprising thousands of DNA sequences, could be useful in developing novel therapies.

The unique properties of Complete’s sequencers, which have been used for studies of cancer, aging, and disease traits, make them a good fit for BGI. Backed by loans from government-run banks, BGI has spent more than a decade creating a huge DNA database. Believed to be the world’s largest purchaser of sequencing machines, it’s been opening offices worldwide to offer services that complement its research. But BGI lacks the know-how to build its own sequencer, an area in which the U.S. remains far ahead of other countries.

In September, BGI offered $ 118 million to acquire Complete, and Complete’s board approved. Together the companies would have a database of 30,000 whole human genomes—about 10 times larger than that of their nearest competitor, says George Church, a professor of genetics at Harvard Medical School. With such a vast trove of data, BGI could gain a leg up in the race to create therapies and diagnostic tools using sequencing information. “I think this is a very big deal,” says Church, who advises dozens of companies in the industry including BGI, Illumina, and Complete.

The possibility of BGI and Complete uniting has not been lost on Illumina, the world’s biggest seller of sequencing machines, which counts BGI as a top customer. In November, Illumina offered a $ 123.5 million counterbid for Complete, which the company’s board rejected, saying regulators would not approve the deal because of Illumina’s market dominance. (Illumina claims its machines produce 90 percent of the world’s sequencing data.)

This in turn prompted Illumina Chief Executive Officer Jay Flatley to raise national security and privacy concerns about BGI’s bid in a letter to Complete’s board that the board later made public. An Illumina spokesperson declined to comment. In a statement, Complete CEO Cliff Reid said, “There’s no risk to U.S. national security raised by Complete Genomics merging with BGI.” Church and others have speculated that the real reason Illumina wants to keep BGI from acquiring sequencing machine technology is that it wants to avoid losing the company as a customer.

Both the Federal Trade Commission and the Committee on Foreign Investment in the U.S. (CFIUS), which weighs national security issues, are reviewing BGI’s bid and will make a recommendation that will likely determine if the deal goes through. Last year, Huawei Technologies, a Chinese maker of telecommunications equipment, abandoned its acquisition of hardware startup 3Leaf Systems, when CFIUS recommended rejecting the deal before it was reviewed by President Obama.

It’s hard to find a genomics expert who sees real national security concerns in a BGI-Complete deal. DNA sequencing machines are readily available, and Complete’s technology isn’t considered uniquely capable of some uniquely nefarious use. Several startups around the world are developing a new generation of sequencing machines that could soon make today’s obsolete. Church, though, says the Complete kerfuffle has provided U.S. regulators with “a good wake-up call” about the potential for this technology and the need for the U.S. to keep investing in its DNA sequencing lead. “Our politicians don’t follow technology as well as they should,” he says.

The bottom line: A BGI-Complete deal could lead to one entity owning 30,000 human genomes, 10 times more than its nearest competitor.

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Arab League chief says Palestinians to petition UN

RAMALLAH, West Bank (AP) — Arab League chief Nabil Elaraby says two decades of talks with Israel have been “a waste of time” and that Palestinians will soon take a new statehood bid to the U.N.

“We will return to the U.N. Security Council,” he said in Ramallah Saturday after meeting Palestinian officials. “Palestine will be cooperating with Arab and EU countries to change the equation (in the peace process) that prevailed over the past 20 years, which was a waste of time.”

The U.N. last month endorsed a de facto Palestinian state in the West Bank, east Jerusalem and Gaza, areas Israel won in a 1967 war.

Talks collapsed in 2008 after Palestinians demanded Israel stop building in areas they want for a future state. Israel insists settlements and other issues should be negotiated.

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Top Comments: The Problems with Facebook, Windows and Apple

The Problem with Windows 8

In the op-ed “The Problem with Windows 8″ Mashable editor Pete Pachal elaborated on the problems he has with Windows 8. Reader Xuanlong pointed out that Windows 8 had a tough act to follow in Windows 7, and that Windows 8 represents a necessary risk for Microsoft.

Click here to view this gallery.

[More from Mashable: Apple Spares Samsung Galaxy S III Mini From Patent Infringement Case]

As the holiday season and the year itself drew to a close this week, Mashable readers were reflective about the innovations and complications we’ve seen in the tech world in 2012. The top comments this week showcase the excitement and frustration that surround top products and services like Microsoft, Apple and Facebook.

The most commented upon story this week was was the op-ed “The Problem with Windows 8,” in which Mashable editor Pete Pachal elaborated on the problems he has with the new OS. Our readers largely agreed with Pachal’s assessment of Windows 8′s shortcomings, though several readers provided well-reasoned rebuttals of some of his points. The second-hottest story was about the rumored “smartphone watch” that Apple may be developing. Our community was split over whether or not this watch was something they wanted, or that anyone needed.

[More from Mashable: 3 Apple Computer Designs That You’ve Never Seen]

Readers also flocked to stories this week that looked at the intersection of human interaction and technology. Mark Zuckerberg’s sister Randi was outraged when a picture she posted on Facebook was reposted to Twitter, inciting a global online conversation about Facebook‘s privacy settings. Our commenters sounded off on everything from Randi Zuckerberg‘s reaction to Facebook’s settings themselves.

What was the topic on Mashable that you were most excited about this week? Don’t forget to let your voice be heard in the comment sections and next week you could be featured in the top comments.

It’s been a wonderful year for the Mashable community, and we want to thank all of our readers for making it fantastic. See you in 2013!

Image courtesy of Flickr, Nandor Fejer

This story originally published on Mashable here.

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