Pensions plans ‘will cost jobs’







The CBI has renewed its attack on a European scheme aimed at strengthening pension finances – claiming it will lead to thousands of job cuts.






The proposals, first outlined by the European Commission in 2010, aim to make company pension schemes more robust if the firm goes bust.


But the CBI said the plans were “completely unnecessary” and would add billions to schemes’ costs.


The UK government is continuing to press for the plans to be dropped.


Costs and jobs


One of the Commission’s aims is to bring the solvency rules for occupational pension schemes in three years time in line with its so-called “Solvency 2″ rules, which will be aimed at strengthening the finances of insurance companies.


This would mean that a company pension scheme would need to cover the full cost of pensions, in case the employer went bust. Normally, a scheme never has to cover the full cost of paying pensions all at once.


A study for the CBI by economic consultants Oxford Economics claimed that the changes could result in extra costs of £350bn over 10 years and 180,000 jobs could be lost.


“Imposing £350bn more costs on business would be a disaster for the economy and for pension saving,” said CBI chief policy director Katja Hall.


“The long-term economic outlook is so fragile and uncertain that it is crazy to entertain proposals which would cost jobs and cut so deeply into our long-term growth and competitiveness.


“We have a tough regulatory system in this country, so these changes are completely unnecessary.”


‘Reckless’


The plans have been criticised by the National Association of Pension Funds (NAPF), the TUC, and the Institute of Chartered Accountants of England and Wales (ICAEW).


In June, Pensions Minister Steve Webb said the government remained “resolute” in its determination to fight off the Commission’s plan and to make the European authorities “see sense”.


He said the rules would be pointless and so onerous for employers that more schemes would simply be shut down altogether.


“I continue to meet senior Commission officials, to persuade them to rethink their reckless plans,” he said.


The Commission said it had yet to make any firm legislative proposals.


BBC News – Business


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McAfee wants to return to US, ‘normal life’






BACALAR, Mexico (AP) — Software company founder John McAfee said Sunday he wants to return to the United States and “settle down to whatever normal life” he can.


In a live-stream Internet broadcast from the Guatemalan detention center where he is fighting a government order that he be returned to Belize, the 67-year-old said “I simply would like to live comfortably day by day, fish, swim, enjoy my declining years.”






Police in neighboring Belize want to question McAfee in the fatal shooting of a U.S. expatriate who lived near his home on a Belizean island in November.


The creator of the McAfee antivirus program again denied involvement in the killing during the Sunday Internet video hook-up, during which he answered what he said were reporters’ questions.


His comments were sometimes contradictory. McAfee is an acknowledged practical joker who has dabbled in yoga, ultra-light aircraft and the production of herbal medications.


The British-born McAfee first said that returning to the United States “is my only hope now.” But he later added, “I would be happy to go to England, I have dual citizenship.”


He was emphatic that “I cannot ever return to Belize …. there is no hope for my life if I am ever returned to Belize.”


“If I am returned,” he said, “bad things will clearly happen to me.”


He descibed the health problems that had him briefly hospitalized earlier this week after Guatemalan authorities detained him for entering the country illegally. He apparently snuck in across a rural, unguarded spot along the border.


“I did not eat for two days, I drank very little liquids, and for the first time in many years I’ve been smoking almost non-stop,” he said. “I stood up, passed out hit my head on the wall, came to,” though he now said he was feeling better.


McAfee praised the role his 20-year-old Belizean girlfriend, Samantha Vanegas, played in his escape from Belize, where he claims he is being persecuted by corrupt politicians. Authorities in Belize deny that they are persecuting him and have questioned his mental state.


“Sam saved the day many times” during their escape, he said, and suggested he would take her with him to the United States if he is allowed to go there.


He confirmed that journalists from Vice magazine who accompanied him on his escape after weeks of hiding in Belize had unwittingly posted photos with embedded data that revealed his exact location.


“It was an error anyone could make,” he said, noting they were under a lot of pressure at the time.


McAfee has led an eccentric life since he sold his stake in the anti-virus software company named after him in the early 1990s and moved to Belize about three years ago to lower his taxes.


He told The New York Times in 2009 that he had lost all but $ 4 million of his $ 100 million fortune in the U.S. financial crisis. However, a story on the Gizmodo website quoted him as describing that claim as “not very accurate at all.”


McAfee’s Guatemalan attorney, Telesforo Guerra, says that he has filed three separate legal appeals in the hope that his client can stay in Guatemala, where his political asylum request was rejected.


Guerra said he filed an appeal for a judge to make sure McAfee’s physical integrity is protected, an appeal against the asylum denial and a petition with immigration officials to allow his client to stay in this Central American country indefinitely.


The appeals could take several days to resolve, Guerra said. He added that he could still use several other legal resources but wouldn’t give any other details.


Fredy Viana, a spokesman for the Immigration Department, said that before the agency looks into the request to allow McAfee to stay in Guatemala, a judge must first deal with the appeal asking that authorities make sure McAfee’s physical integrity is protected.


“We won’t look into (allowing him to stay) until the other appeal is resolved,” Viana said. “The law gives me 30 days to resolve the issue.”


McAfee went on the run last month after Belizean officials tried to question him about the killing of Gregory Viant Faull, who was shot to death in early November.


McAfee acknowledges that his dogs were bothersome and that Faull had complained about them, but denies killing Faull. Faull’s home was a couple of houses down from McAfee’s compound in Ambergris Caye, off Belize’s Caribbean coast.


Latin America News Headlines – Yahoo! News


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Syrian Rebels Now Have a Tank Powered by a Playstation Controller






As Syria‘s rebels work to overthrow the tank-equipped Assad regime, they’ve learned that it helps to have tanks of their own. They deserve bonus points for integrating video game technology. This is no exaggeration. Have a look at the opposition forces’ “100 percent made in Syria” armored vehicle, the Sham II.


RELATED: What Dennis Kucinich Really Said in Syria






Named for ancient Syria and assembled out of spare parts over the course of a month, the Sham II sort of rough around the edges, but it’s got impressive guts. It rides on the chassis of an old diesel car and is fully encased in light steel that’s rusted from the elements. Five cameras are mounted around the tanks outside, and there’s a machine gun mounted on a turning turret. Inside, it kind of looks like a man cave. A couple of flat screen TVs are mounted on opposite walls. The driver sits in front of one, controlling the vehicle with a steering wheel, and the gunner sits at the other, aiming the machine gun with a Playstation controller.


RELATED: It’s Never a Good Idea to Put Your Torture Victims on YouTube


Sham II is heading up to the devastated city of Aleppo to join the combat forces there. Meanwhile, rebel forces continue to close in on Damascus and Assad’s shrinking regime. Diplomats have already begun to speculate about what the Syrian president’s next move would be. We do know that Assad has been exploring the option of seeking political asylum in the Middle East or in Latin American. However, it looks more likely that Assad and his cronies will retreat to the Alawite-controlled mountains on Syria’s Mediterranean coast. The only other alternative — chemical weapons attack notwithstanding — would be for Assad to stay in the palace and fight to the end. And can you imagine standing helpless as a fierce machine like Sham II roared up the palace steps? Run, Bashar. Run.


RELATED: The CIA Is Guiding Weapons into Syria


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Gabrielle Aplin tops UK charts with Power of Love






LONDON (Reuters) – English singer Gabrielle Aplin scored her first British number one on Sunday with a cover of the Frankie Goes To Hollywood hit “The Power of Love”, the Official Charts Company said.


Aplin climbed to number one from sixth place with the song, which first entered the charts in 1984 and is the theme for a Christmas television advert for British retailer John Lewis.






In the album charts, Olly Murs, a former runner-up in television’s X-Factor talent contest, held on to the top spot with his release “Right Place Right Time”, but saw his “Troublemaker” slip to third place in the singles ranks.


American singer Pink was the week’s highest climber in the singles top ten, jumping to eighth place from number 26 with “Try”.


(Reporting by Tim Castle; editing by Jason Webb)


Music News Headlines – Yahoo! News


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Iron may prevent behavioral issues in small babies






NEW YORK (Reuters Health) – Iron supplements may help boost brain development and ward off behavioral problems in babies who are born a bit on the small side, a new study from Sweden suggests.


Low birth-weight babies are more likely to end up iron deficient, researchers said. They need more of the nutrient for catch-up growth and haven’t stored as much as other babies if they’re also born premature.






For that reason, very early-term and very small babies are often put on iron – but less research has looked at babies born just shy of normal weight, to see if they are also at risk.


“I think this further solidifies the evidence that it’s a very good idea to give these (marginally low birth-weight) children iron supplements,” said Dr. Magnus Domellof, from Umea University, who worked on the study.


The research was led by his colleague, Dr. Staffan Berglund. Their team followed 285 infants born between 4 pounds, 7 ounces and 5 pounds, 8 ounces.


When the babies were six weeks old, the researchers randomly assigned them to get iron drops – either one or two milligrams per kilogram of body weight – or iron-free placebo drops each day until their six-month birthday.


Then at age three and a half, Domellof’s team brought the kids back for IQ tests and surveyed parents about their behavioral issues. The researchers compared kids in the iron- and placebo-drop study groups with another 95 children who were born at normal weight.


There were no IQ differences based on whether the smaller-than-average babies had been put on an iron regimen. All three low birth-weight groups had average scores between 104 and 105. (“Cognitive impairment” in this study was considered an IQ under 85.)


However, significantly more babies given placebo drops had behavioral problems, as reported by their parents. The issues included problems managing emotional reactions, anxiety and depression, as well as sleep and attention problems.


Almost 13 percent of the placebo-group babies scored above the cutoff for clinical behavior problems, versus about 3 percent of kids who’d taken iron drops and kids from the normal-weight comparison group.


That suggests iron deficiency in infancy may be a direct cause of behavioral problems later in childhood, the researchers wrote Monday in the journal Pediatrics.


They are continuing to monitor the same group of kids as they get older, to see if new cognitive or behavioral problems develop or old ones get better as the children head into grade school.


Domellof said he and his colleagues didn’t see any extra stomach problems in kids or delayed growth linked to the use of iron drops. Some research has suggested giving excessive iron to young kids who aren’t deficient may stunt their development.


But, “I would not be afraid of recommending this to all children (born) below 2,500 grams (5 pounds, 8 ounces) at this dose,” Domellof told Reuters Health.


“Here’s where an ounce of prevention is worth a pound of cure,” said Dr. Michael Georgieff, a child development researcher at the University of Minnesota in Minneapolis who had reviewed the study as part of Berglund’s dissertation committee.


He told Reuters Health that it’s important for all parents to know their baby’s iron requirements when they leave the hospital.


“The issue with these marginally low birth-weight infants is, people really haven’t paid a lot of attention to them, but the evidence is accumulating that they are at risk for behavioral problems and less than ideal cognitive function,” said Dr. Betsy Lozoff, who studies the effects of iron deficiency in infants at the University of Michigan in Ann Arbor.


For most babies in the United States, extra iron is recommended starting at four to six months, either through supplements if the mother is breastfeeding or through formula. Very small or premature babies typically have their iron monitored from birth.


But Lozoff, who wasn’t involved in the new research, said that in many places, there are no recommendations for how to treat babies who are just below a normal birth weight.


“This would suggest that it should just be a routine supplementation, and it can be at a low level of iron,” she told Reuters Health.


SOURCE: http://bit.ly/cxXOG Pediatrics, online December 10, 2012.


Health News Headlines – Yahoo! News


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Lincoln Wants to Torch the Airport Limo






Last summer, as Ford Motor’s (F) marketing team confronted the daunting challenge of trying to make its fusty old Lincoln luxury line hip again, their New York ad agency came up with what seemed like a dream solution: Film a youngish, A-list actor like Leonardo DiCaprio behind the wheel of the brand’s sleek new MKZ model, but don’t let viewers see his face. The star’s familiar voice would tell what seemed like a personal tale. “You’ve seen me in movies. I’ve met presidents.” At the end of the commercial, though, the actor would walk away without ever being revealed, while the camera would spin to show the car and an announcer intones: “Introducing the Lincoln Motor Company.” Ford staffers loved it.


Jim Farley, Ford’s Lincoln chief, killed the plan for the 60-second spot. “It’s not going to break through,” Farley said, according to his marketing director, Matt VanDyke. “Find me something that’s going to break through.” In late December, Lincoln will air a commercial that opens with the immolation of an old Town Car—the ubiquitous, mundane airport taxi that both defines and dogs the brand. From the flames, phoenix-like, emerges the new MKZ sedan. “The tricky part is getting noticed,” says Farley, who helped Toyota Motor (TM) introduce its Lexus luxury line. “You don’t have much time because you haven’t earned the right to be in people’s minds.”






After decades of decline, the same can be said about Lincoln. Ford’s lagging luxury brand hasn’t been hip since JFK was in the White House, and sales have plummeted 63 percent since they reached their peak in 1990. BMW-loving baby boomers have long rejected Lincoln as Dad’s ride—nearly 35 percent of Lincolns are sold to buyers 65 or older, according to auto researcher Edmunds.com. About 14 percent of Lincoln owners are more than 75 years old; only 2 percent of BMW (BMW) and Audi drivers are that age.


6a621  comp lincoln50  01  inline405 Lincoln Wants to Torch the Airport LimoGetty Images(5)


Now Ford is trying to reposition 90-year-old Lincoln as a boutique brand that appeals to Gen Xers not beholden to the German luxury lines. Gone are ads featuring white-haired actor John Slattery, one of the stars of television’s Mad Men. At a press conference at New York’s Lincoln Center for the Performing Arts on Dec. 3, Ford Chief Executive Officer Alan Mulally revealed that comedian Jimmy Fallon has been hired to produce (but not star in) the luxury line’s first-ever Super Bowl spot, using script suggestions from Twitter users. The automaker also debuted a new TV commercial starring an actor portraying Abraham Lincoln—a first for the brand that shares his name—and featuring cameos of classic owners Clark Gable and Dean Martin leaning against the fenders of an MKZ. FDR also makes an appearance.


“They shouldn’t ditch their history, but it’s important that they signal change,” says Leslie Butterfield, global chief strategy officer for consultant Interbrand (OMC). “There needs to be something that says this brand has changed, something’s been added, something’s been modernized, something’s fresh about it.”


Stressing a brand’s advanced age can be off-putting to younger buyers. Audi, Volkswagen’s resurgent luxury line, doesn’t pitch its German heritage. Instead, it focuses on what’s next. “People always ask me, ‘Why don’t you guys talk about your history?’ ” says Scott Keogh, president of Audi of America. “That’s not what drives us. What drives us is: Man, how do we come up with the next solution? What’s the next thing? We’re, like, a restless company.”


Lincoln is being selective about the heritage to which it harks back—the glamour of Gable and the flowing Lincolns of that era as opposed to the land yachts of the ’90s. And yet, VanDyke says they ultimately felt they had to take on that stigma with the burning Town Car commercial. When the MKZ emerges from the flames, an announcer says: “It’s not what you think.” VanDyke admits “that was a white knuckler in terms of presenting it to” Mulally and Ford’s top brass. “But they said, ‘Hey, that’s what people think, and that’s what we should directly challenge.’ ”


Ford’s conflicted view of Lincoln’s past highlights the task of repositioning a brand with a trunkful of baggage. They see value in Lincoln’s history as a presidential limo, but President Kennedy, assassinated in a Lincoln Continental, won’t appear in an ad. They debated whether to cut a scene in the upcoming Abraham Lincoln spot that included an American flag on a presidential limo, because luxury buyers aren’t drawn to American brands. (They left the flag in.) “The world is not waiting for another luxury car,” says Cameron McNaughton, head of Lincoln’s new ad agency HudsonRouge, a unit of global ad giant WPP (WPPGY). “If Lincoln is going to succeed, it needs to be brave.”


Ford’s $ 1 billion bet to restock the Lincoln lineup with seven new models by 2015 is a gamble. General Motors (GM) spent twice as much to overhaul Cadillac more than a decade ago. Audi spends €2 billion ($ 2.6 billion) a year on technology and product development, Keogh says. “Ford has got to have reasonable expectations with Lincoln,” says Michelle Krebs, an analyst with Edmunds.com. “The MKZ is a very fine car, but does it really compete with a BMW 3 Series? It’s not even on the same shopping list.”


6a621  comp lincolnchart50 405b Lincoln Wants to Torch the Airport Limo


BMW and Daimler’s (DAI) Mercedes-Benz each outsell Lincoln by more than 3 to 1. Rather than try to dislodge drivers of German vehicles from their cars, VanDyke says Lincoln is seeking “curious” luxury buyers not beholden to brands. Lincoln figures those buyers make up a quarter of the luxury market, though Farley says Ford’s ambition is not to return Lincoln to the top-selling luxury spot in the U.S., a position it last held in 1999. “We’re about personal service. It’s really small, like a small tailor shop,” Farley says. “It’s not huge waiting lounges, Wi-Fi, and cappuccino machines. That wouldn’t be our brand.”


The bottom line: Ford is spending $ 1 billion to revamp Lincoln’s lineup. Changing the luxury line’s fusty image could be a bigger challenge.


With Jamie Butters


Businessweek.com — Top News


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Peru’s capital highly vulnerable to major quake












LIMA, Peru (AP) — The earthquake all but flattened colonial Lima, the shaking so violent that people tossed to the ground couldn’t get back up. Minutes later, a 50-foot (15-meter) wall of Pacific Ocean crashed into the adjacent port of Callao, killing all but 200 of its 5,000 inhabitants. Bodies washed ashore for weeks.


Plenty of earthquakes have shaken Peru‘s capital in the 266 years since that fateful night of Oct. 28, 1746, though none with anything near the violence.












The relatively long “seismic silence” means that Lima, set astride one of the most volatile ruptures in the Earth’s crust, is increasingly at risk of being hammered by a one-two, quake-tsunami punch as calamitous as what devastated Japan last year and traumatized Santiago, Chile, and its nearby coast a year earlier, seismologists say.


Yet this city of 9 million people is sorely unprepared. Its acute vulnerability, from densely clustered, unstable housing to a dearth of first-responders, is unmatched regionally. Peru’s National Civil Defense Institute forecasts up to 50,000 dead, 686,000 injured and 200,000 homes destroyed if Lima is hit by a magnitude-8.0 quake.


“In South America, it is the most at risk,” said architect Jose Sato, director of the Center for Disaster Study and Prevention, or PREDES, a non-governmental group financed by the charity Oxfam that is working on reducing Lima’s quake vulnerability.


Lima is home to a third of Peru’s population, 70 percent of its industry, 85 percent of its financial sector, its entire central government and the bulk of international commerce.


“A quake similar to what happened in Santiago would break the country economically,” said Gabriel Prado, Lima’s top official for quake preparedness. That quake had a magnitude of 8.8.


Quakes are frequent in Peru, with about 170 felt by people annually, said Hernando Tavera, director of seismology at the country’s Geophysical Institute. A big one is due, and the chances of it striking increase daily, he said. The same collision of tectonic plates responsible for the most powerful quake ever recorded, a magnitude-9.5 quake that hit Chile in 1960, occurs just off Lima’s coast, where about 3 inches of oceanic crust slides annually beneath the continent.


A 7.5-magnitude quake in 1974 a day’s drive from Lima in the Cordillera Blanca range killed about 70,000 people as landslides buried villages. Seventy-eight people died in the capital. In 2007, a 7.9-magnitude quake struck even closer, killing 596 people in the south-central coastal city of Pisco.


A shallow, direct hit is the big danger.


More than two in five Lima residents live either in rickety structures on unstable, sandy soil and wetlands that amplify a quake’s destructive power or in hillside settlements that sprang up over a generation as people fled conflict and poverty in Peru’s interior. Thousands are built of colonial-era adobe.


Most quake-prone countries have rigorous building codes to resist seismic events. In Chile, if engineers and builders don’t adhere to them they can face prison. Not so in Peru.


“People are building with adobe just as they did in the 17th century,” said Carlos Zavala, director of Lima’s Japanese-Peruvian Center for Seismic Investigation and Disaster Mitigation.


Environmental and human-made perils compound the danger.


Situated in a coastal desert, Lima gets its water from a single river, the Rimac, which a landslide could easily block. That risk is compounded by a containment pond full of toxic heavy metals from an old mine that could rupture and contaminate the Rimac, said Agustin Gonzalez, a PREDES official advising Lima’s government.


Most of Lima’s food supply arrives via a two-lane highway that parallels the river, another potential chokepoint.


Lima’s airport and seaport, the key entry points for international aid, are also vulnerable. Both are in Callao, which seismologists expect to be scoured by a 20-foot (6-meter) tsunami if a big quake is centered offshore, the most likely scenario.


Mayor Susana Villaran’s administration is Lima’s first to organize a quake-response and disaster mitigation plan. A February 2011 law obliged Peru’s municipalities to do so. Yet Lima’s remains incipient.


“How are the injured going to be attended to? What is the ability of hospitals to respond? Of basic services? Water, energy, food reserves? I don’t think this is being addressed with enough responsibility,” said Tavera of the Geophysical Institute.


By necessity, most injured will be treated where they fall, but Peru’s police have no comprehensive first-aid training. Only Lima’s 4,000 firefighters, all volunteers, have such training, as does a 1,000-officer police emergency squadron.


But because the firefighters are volunteers, a quake’s timing could influence rescue efforts.


“If you go to a fire station at 10 in the morning there’s hardly anyone there,” said Gonzalez, who advocates a full-time professional force.


In the next two months, Lima will spend nearly $ 2 million on the three fire companies that cover downtown Lima, its first direct investment in firefighters in 25 years, Prado said. The national government is spending $ 18 million citywide for 50 new fire trucks and ambulances.


But where would the ambulances go?


A 1997 study by the Pan American Health Organization found that three of Lima’s principal public hospitals would likely collapse in a major quake, but nothing has been done to reinforce them.


And there are no free beds. One public hospital, Maria Auxiliadora, serves more than 1.2 million people in Lima’s south but has just 400 beds, and they are always full.


Contingency plans call for setting up mobile hospitals in tents in city parks. But Gonzalez said only about 10,000 injured could be treated.


Water is also a worry. The fire threat to Lima is severe — from refineries to densely-backed neighborhoods honeycombed with colonial-era wood and adobe. Lima’s firefighters often can’t get enough water pressure to douse a blaze.


“We should have places where we can store water not just to put out fires but also to distribute water to the population,” said Sato, former head of the disaster mitigation department at Peru’s National Engineering University.


The city’s lone water-and-sewer utility can barely provide water to one-tenth of Lima in the best of times.


Another big concern: Lima has no emergency operations center and the radio networks of the police, firefighters and the Health Ministry, which runs city hospitals, use different frequencies, hindering effective communication.


Nearly half of the city’s schools require a detailed evaluation to determine how to reinforce them against collapse, Sato said.


A recent media blitz, along with three nationwide quake-tsunami drills this year, helped raise consciousness. The city has spent more than $ 77 million for retention walls and concrete stairs to aid evacuation in hillside neighborhoods, Prado said, but much more is needed.


At the biggest risk, apart from tsunami-vulnerable Callao, are places like Nueva Rinconada.


A treeless moonscape in the southern hills, it is a haven for economic refugees who arrive daily from Peru’s countryside and cobble together precarious homes on lots they scored into steep hillsides with pickaxes.


Engineers who have surveyed Nueva Rinconada call its upper reaches a death trap. Most residents understand this but say they have nowhere else to go.


Water arrives in tanker trucks at $ 1 per 200 liters (52 gallons) but is unsafe to drink unless boiled. There is no sanitation; people dig their own latrines. There are no streetlamps, and visibility is erased at night as Lima’s bone-chilling fog settles into the hills.


Homes of wood, adobe and straw matting rest on piled-rock foundations that engineers say will crumble and rain down on people below in a major quake.


A recently built concrete retaining wall at the valley’s head lies a block beneath the thin-walled wood home of Hilarion Lopez, a 55-year-old janitor and community leader. It might keep his house from sliding downhill, but boulders resting on uphill slopes could shake loose and crush him and his neighbors.


“We’ve made holes and poured concrete around some of the more unstable boulders,” he says, squinting uphill in a strong late morning sun.


He’s not so worried if a quake strikes during daylight.


“But if I get caught at night? How do I see a rock?”


___


Associated Press writer Franklin Briceno contributed to this report.


___


Frank Bajak on Twitter: http://twitter.com/fbajak


Latin America News Headlines – Yahoo! News


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Rolling Stones rock Brooklyn at anniversary gig












NEW YORK (AP) — It sure didn’t feel like a farewell.


The Rolling Stones — average age 68-plus, if you’re counting — were in rollicking form as they rocked the Barclays Center in Brooklyn for 2½ hours Saturday night, their first U.S. show on a mini-tour marking a mind-boggling 50 years as a rock band.












And although every time the Stones tour, the inevitable questions arise, — whether it’s “The Last Time,” to quote one of their songs — there was no sign that anything is ending anytime soon.


“People say, why do you keep doing this?” mused 69-year-old Mick Jagger, the band’s impossibly energetic frontman, before launching into “Brown Sugar.” ”Why do you keep touring, coming back? The answer is, you’re the reason we’re doing this. Thank you for buying our records and coming to our shows for the last 50 years.”


Jagger was in fine form, with strong vocals and his usual swagger — strutting, jogging, skipping and pumping his arms like a man half his age. And though he briefly donned a flamboyant feathered black cape for “Sympathy for the Devil” and later, some red-sequined tails, he was mostly content to prowl the stage in a tight black T-shirt and trousers.


The band’s guitarists, the brilliant Keith Richards and Ronnie Wood, alternated searing solos and occasionally ventured onto a stage extension that brought them closer to the crowd. The now-gray Richards, wearing a red bandana, exuded the easy familiarity of a favorite uncle: “While we wait for Ronnie,” he said at one point, “I’ll wish you happy holidays.” Watts, the dapper drummer in a simple black T-shirt, smiled frequently at his band mates.


The grizzled quartet was joined on “Gimme Shelter” by Mary J. Blige, who traded vocals with Jagger and earned a huge cheer at the end. Also visiting: the Texas blues guitarist Gary Clark Jr.


The sense of nostalgia was heightened by projections on a huge screen of footage of the early days, when the Stones looked like teenagers. At one point, Jagger reminisced about the first time the band played New York — in 1964.


A carton of milk cost only a quarter then, he said. And a ticket to the Rolling Stones? “I don’t want to go there,” he quipped. It was a reference to the sky-high prices at the current “50 and Counting” shows, where even the “cheap” seats cost a few hundred dollars and a prime seat cost in the $ 700 range or higher.


From the opening number, “Get Off Of My Cloud,” the band played a generous 23 songs, including two new ones — “Doom and Gloom” and “One More Shot” — but mostly old favorites. The rousing encore included “Jumping Jack Flash,” of course, but the final song was “Satisfaction.” And though the song speaks of not getting any, the consensus of the packed 18,000-seat arena was that it was a satisfying evening indeed.


“If you like the Stones, this was as good a show as you could have had,” said one fan, Robert Nehring, 58, of Westfield, N.J., who’d paid $ 500 for his seat. “It was worth it,” he said simply.


The Brooklyn show was a coup for the new Barclays Center — there are no Manhattan shows. It followed two rapturously received Stones shows in London late last month. The band also will play two shows in Newark, N.J., on Dec. 13 and 15.


And just before that, the Stones will join a veritable who’s who of British rock royalty and U.S. superstars at the blockbuster 12-12-12 Superstorm Sandy benefit concert at Madison Square Garden. Also scheduled to perform: Paul McCartney, the Who, Eric Clapton, Bruce Springsteen & The E Street Band, Alicia Keys, Kanye West, Eddie Vedder, Billy Joel, Roger Waters and Chris Martin.


In a flurry of anniversary activity, the band also released a hits compilation last month with two new songs, “Doom and Gloom” and “One More Shot,” and HBO premiered a new documentary on their formative years, “Crossfire Hurricane.”


The Stones formed in London in 1962 to play Chicago blues, led at the time by the late Brian Jones and pianist Ian Stewart, along with Jagger and Richards, who’d met on a train platform a year earlier. Bassist Bill Wyman and Watts were quick additions.


Wyman, who left the band in 1992, was a guest at the London shows last month, as was Mick Taylor, the celebrated former Stones guitarist who left in 1974 and replaced by Wood, the newest Stone and the youngster at 65.


The inevitable questions have been swirling about the next step for the Stones: another huge global tour, on the scale of their last one, “A Bigger Bang,” which earned more than $ 550 million between 2005 and 2007? Something a bit smaller? Or is this mini-tour, in the words of their new song, really “One Last Shot?”


The Stones won’t say. But in an interview last month, they made clear they felt the 50th anniversary was something to be marked.


“I thought it would be kind of churlish not to do something,” Jagger told The Associated Press. “Otherwise, the BBC would have done a rather dull film about the Rolling Stones.”


There certainly was nothing dull about the band’s performance on Saturday, a show that brought together many middle-aged fans, to be sure, but also some of their children, who seemed to be enjoying the classic Stones brand of blues-tinged rock as much as their parents.


Yes, a Stone’s average age might be a bit higher than that of the average Supreme Court justice. (To be fair, the newest justices bring the average down). But to watch these musicians play with vitality and vigor a half-century on is to believe that maybe they were right when they sang, “Time Is On My Side.” At least for a few more years.


__


Associated Press writer David Bauder contributed to this report.


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On the edge of the “cliff,” U.S. cities like Charleston












CHARLESTON, South Carolina (Reuters) – For 37 years straight, Joseph P. Riley Jr. has sat behind the mayor’s desk here, shaping this city and its budget.


On a recent afternoon, Riley, 69, reached for a draft copy of next year’s spending plan and wondered aloud about what might get cut should politicians in Washington fail to find an agreement this month, unleashing $ 600 billion worth of spending reductions and tax hikes next year.












Hiring new police officers for the city of 123,000 could be put on hold, Riley said. A new piece of equipment for the fire department would have to wait. Sanitation workers might be in trouble, too.


“The thought that they would allow the economic harm that would ensue if we went over the fiscal cliff is mind-boggling,” said Riley, a Democrat who was elected to his 10th term last year.


Charleston, a beautiful city steeped in history and awash in tourist dollars, would seem at first glance a world apart from the harm that could be caused by the combination of spending cuts and higher taxes. Economists predict its arrival could send the United States hurtling back into a recession.


At its edges, however, Charleston harbors the people who are most vulnerable to Washington’s intransigence, making the city an emblem of a country’s worry and of the powerlessness people feel in the face of Washington’s indecision.


The sting of automatic cuts would be felt acutely by those who work in the defense sector and the poor. They form two prominent groups in Charleston County who may share little but the knowledge that federal belt-tightening is less a nuisance than an existential threat.


In South Carolina, defense spending accounts for $ 15.7 billion in annual economic activity – more than one in 10 dollars spent in the state – and nearly 140,000 jobs.


The Charleston area alone, which includes a large Air Force base and a Navy facility, holds more than 66,000 defense jobs and nearly half of the state’s military economic activity, according to a report released last month by the South Carolina Department of Commerce.


While Charleston, like the rest of the state, has seen a boom in military spending over the last decade, the area has the state’s second-highest concentration of people living in poverty, according to 2010 U.S. census data. More than one in four children live in poverty in the surrounding county.


From the anticipated cuts to the military to the shrinking of the safety net, Charleston shows what’s at stake should the United States fall off the fiscal cliff.


‘DEVASTATION’


A fast-talking engineer originally from Detroit, Michigan, Rebecca Ufkes founded UEC Electronics with her husband in neighboring Hanahan 17 years ago. Walking past employees in blue lab coats assembling components for military vehicles and commercial products last week, Ufkes described the chilling effect the possibility of cuts have had on Charleston’s defense industry.


In September, Ufkes traveled to Washington as a part of a lobbying effort organized by the Aerospace Industry Association, hoping to impress politicians with the dangers facing her 200-person company and its competitors should the anticipated $ 500 billion in defense cuts, over 10 years, come to pass.


She came away encouraged by her state’s largely Republican representation in Washington but frustrated by other lawmakers.


“South Carolina is a very pro-business state,” she said. “They are very keen on economics. It’s just that we are only one of 50 states.”


Ufkes, 48, said she worries not only about the uncertainty that has left defense contractors unsure where to invest but the impending tax increases, which she said will put her company, active in the commercial marketplace as well, at a disadvantage against foreign rivals.


“Probably the solution is not going to be perfect for UEC,” she said, “but I don’t want it to be devastating. Compromise and devastation are not the same thing.”


With a mug declaring, “Failure is not an option,” sitting on her desk, Ufkes predicted that her company would make it, no matter how devastating the cuts are.


“If we don’t survive,” she said. “I don’t know who will.”


NO ‘GIFTS’


Five miles (eight km) from Ufkes’ cutting-edge electronics manufacturer is the struggling North Charleston neighborhood of Chicora-Cherokee, where Bill Stanfield and his wife, Evelyn Oliveira, arrived fresh out of Princeton Theological Seminary 10 years ago.


They founded Metanoia, a development organization focusing on bettering the community by securing housing loans, planting a garden, and running after-school and summer programs.


Through government services like AmeriCorps, the national volunteer group, and funds from sources like the U.S. Department of Housing and Urban Development, Stanfield said his group received nearly a fifth of its funding from the federal government last year.


With politicians facing immense pressure over limiting cuts to entitlements like the Medicare health insurance program for seniors and the Social Security retirement program, advocates for the poor say they expect painful reductions in spending on education and housing.


“I don’t know if our housing program would survive,” Stanfield, 39, said.


Cuts to education will hit South Carolina hard, where the schools have bled money over the last five years.


According to the left-leaning Center on Budget and Policy Priorities, South Carolina’s cuts to education have been the fifth largest in the country, slicing 18 percent off of per-student spending during that period.


The Obama administration, which Republicans consider a profligate spender, has felt like lean times in neighborhoods like Chicora-Cherokee, Stanfield said.


“You know Mitt Romney said that people voted for Obama because of gifts?” Stanfield said. “There’s this misconception that President Obama has been a gravy train of funding. There was more funding under President Bush of these organizations than under Obama.”


‘GAME OF CHICKEN’


Last month, Riley, the Charleston mayor, went to Washington with a group of fellow city leaders, Democrats and Republicans, to lobby the White House and Congress to save cities from drastic cuts.


Vice President Joseph Biden and Democratic leaders from the House of Representatives and Senate met with the mayors. House Speaker John Boehner and other Republican leaders in Congress declined their invitation, Riley said.


While Riley supports Obama’s proposal to increase taxes on income earned over $ 250,000, a sticking point in the negotiations, he and other mayors cautioned that ending the tax-free status of municipal bonds would strangle cities’ access to needed capital.


Riley returned to Charleston feeling like a deal, which could prevent the harshest blows from hitting his city, its residents and jobs, was in the offing. Now, he said, he is not so sure.


“It looks like it’s a game of chicken,” he said, “and there are signals that they are going to go through with it.”


(Reporting By Samuel P. Jacobs Editing by Fred Barbash and Eric Beech)


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Barroso says Italy vote must not stop reform drive












ROME (Reuters) – Early elections in Italy must not hinder the economic reforms of Prime Minister Mario Monti, the head of the European Commission was quoted as saying on Sunday, in a sign of growing international concern over the political crisis in Rome.


Monti’s surprise announcement on Saturday that he intended to resign early once next year’s budget is approved has opened the prospect of an election in February, a few weeks before the natural end of his term in April.












Former Prime Minister Silvio Berlusconi, whose withdrawal of support for the technocrat government in parliament last week triggered the crisis, has already announced he will be running on a platform attacking Monti’s economic policies.


Speaking to business daily Il Sole 24 Ore, European Commission President Jose Manuel Barroso said Italy, the euro zone’s third largest economy, remained at risk of a renewed bout of financial crisis, despite months of improving market confidence.


“The next elections must not serve as a pretext for putting in doubt how indispensable these measures are,” he said.


“The relative calm on the markets does not mean we are out of the crisis,” he said.


Barroso’s comments underlined the uncertainty created by the sudden acceleration of Italy’s political crisis following Berlusconi’s decision to turn his back on Monti, whose government his People of Freedom (PDL) party had backed in parliament for more than a year.


According to the daily Corriere della Sera, Monti himself said he had been besieged with questions on the crisis while attending a conference in Cannes in the south of France on Saturday.


“I did not reply all day to the many questions which I received, especially from foreigners. I noticed their amazement about the Italian situation,” he was quoted as saying by the newspaper.


Italian 10 year bond yields, the main barometer of market opinion, rose last week as the crisis broke, reversing weeks of steady falls although they remain well short of the levels reached during last year’s crisis.


The yield on the 10 year BTP stood at 4.5 percent at the end of last week, 323 basis points higher than the yield on lower risk German 10 year Bunds but much lower than the level of 7.3 percent seen last year.


The former European Commissioner came to power at the height of the financial crisis a year ago and was widely credited with restoring Italy’s credibility on financial markets and with European partners after the scandal-plagued Berlusconi era.


(Reporting by James Mackenzie; editing by Barry Moody and Andrew Heavens)


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