Asian shares, euro rise after firm China data

TOKYO (Reuters) - Asian shares and the euro rose on Monday as further signs of a stabilizing Chinese economy boosted investor risk appetite, offsetting worries that stagnant U.S. budget talks could threaten to derail the world's largest economy.

A firm manufacturing survey from Asia's fourth-largest economy, South Korea, also brightened mood, while data from Australia showing sluggish retail sales and labor demand and tame inflation raised expectations the Reserve Bank of Australia may cut interest rates at its meeting on Tuesday.

India will report its manufacturing data later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> climbed 0.4 percent to a fresh nine-month high, after closing at its highest since February 29 on Friday, and a touch below 2012 highs. Hong Kong shares <.hsi> extended gains, hitting fresh intra-day highs on the year.

The pace of activity in China's vast manufacturing sector quickened for the first time in 13 months in November, with the final reading for the HSBC Purchasing Managers' Survey (PMI) rising to 50.5 in November, further evidence that the economy is reviving after seven quarters of slowing growth.

China's official PMI hit a seven-month high of 50.6 for November, according to a manufacturing survey over the weekend, while an official PMI survey of non-manufacturing sectors ticked up to 55.6 in November, led by construction services.

The euro rose to a six-week high against the dollar at $1.3048, after the upbeat data on Chinese manufacturing helped to trigger stop-loss buying of the common currency.

"There is growing confidence that China's economy bottomed in July-September, with signs of firmer external demand," said Hirokazu Yuihama, a senior strategist at Daiwa Securities.

"Sentiment is supported because the gradual recovery in Asian economies comes against the backdrop of low interest rates environment, which won't be changed anytime soon, so the recovery in risk sentiment is likely to extend into next year," he said.

The favorable Chinese data and hopes of a rate cut saw Australian shares <.axjo> up 0.7 percent to a five-week high.

South Korean shares <.ks11> rose 0.3 percent to their highest in more than six weeks, buoyed by weekend data showing exports posted their first back-to-back growth of the year and a private manufacturing survey on Monday showing a the pace of contraction slowed in November.

Japan's Nikkei stock average <.n225> added 0.7 percent to a fresh seven-month high, extending gains from Friday. <.t/>

"My understanding of the current market move is mainly due to the catch up of high-beta exporting companies due to the global economic trend ... This process of catch up will continue until the Nikkei hit 10,000," said Ryota Sakagami, chief strategist at SMBC Nikko Securities, of Nikkei.

Japanese firms raised spending on plant and equipment in the third quarter for a fourth consecutive quarterly rise, in the latest sign the world's third-largest economy may have seen the worst from the effect of slack global demand.

ANXIETY GAUGE MIXED

Major stock market indexes closed little changed and Treasury yields slipped on safe-haven demand on Friday as the stalemate in U.S. budget talks fuelled concerns about slowing U.S. economic growth.

European stocks ended Friday slightly down but posted solid monthly gains, thanks to growing views that the worst of Europe's debt crisis is over.

The Euro STOXX 50 Volatility Index <.v2tx>, Europe's widely-used measure of investor risk aversion, fell to its lowest level not seen since mid-2007 of 16.26 on Friday.

Data from EPFR Global showed on Friday that worldwide, stock funds took in $14.86 billion in the week ended November 28, the second-largest total since 2008, while investors pumped the most into U.S. stock funds in over a year even as U.S. lawmakers sparred over planned budget cuts.

But the CBOE Volatility Index <.vix>, which reflects anxiety in the Standard & Poor's 500 index <.spx>, jumped 5.4 percent on Friday for its largest daily gain in two weeks.

The euro fell on Friday after Moody's downgraded the credit ratings on the European Stability Mechanism and the European Financial Stability Fund last week, but the drop was limited.

The dollar steadied at 82.34 yen, not far from a 7-1/2-month high of 82.84 yen touched on November 22.

Data from the Commodity Futures Trading Commission released on Friday showed currency speculators in the latest week boosted short yen positions to the highest since the beginning of May, 2007, riding on speculation that a likely change in Japan's government would lead to more aggressive monetary easing.

Both U.S. crude futures and Brent inched up 0.3 percent to $89.16 a barrel and $111.57 respectively, while London copper also gained 0.3 percent to $8,018 a metric ton (1.1023 tons).

Spot gold crawled up 0.3 percent to $1,719.71 an ounce, as a 0.2 percent drop <.dxy> in the dollar against a basket of key currencies made dollar-based commodities less expensive for holders of non-dollar currencies.

(Additional reporting by Dominic Lau in Tokyo; Editing by Michael Perry)

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Suspected Gaza Collaborators Face a Grisly Fate

RAFAH, Gaza Strip — When Fadel Shalouf’s family went to pick up his body at the morgue the day after he was executed on a busy Gaza street corner, they found his hands still cuffed behind his back. Hamas, the militant faction that rules Gaza, did not provide a van to carry the body to burial, so they laid him on two men’s laps in the back of a sedan.

It was an undignified end to a short, shrouded life. Mr. Shalouf, his family insisted, was an illiterate fisherman with a knack for designing kites when he was arrested at 19 by Gaza’s internal security service. Yet he was convicted in a Hamas court in January 2011 of providing Israel with information that led to the 2006 assassination of Abu Attaya, commander of the Popular Resistance Committees.

During last month’s intense eight-day battle with Israel, the military wing of the Hamas government brutally and publicly put an end to Mr. Shalouf, 24, and six other suspected collaborators. The vigilante-style killings by masked gunmen — with one body dragged through a Gaza City neighborhood by motorcycle and another left for crowds to gawk over in a traffic circle — highlighted the pathetic plight of collaborators, pawns preyed on by both sides in the long-running Israeli-Palestinian conflict.

“Fadel lived poor and died poor,” said his cousin Ahmed Shalouf, 28. “They left the bodies for a few hours in the streets, people spitting on them, throwing stones. They did not execute only Fadel. They executed all of us.”

For Israel, despite its advanced technology for tracking terrorists, human sources remain an essential intelligence tool that allows for pinpoint strikes like the one that felled Ahmed al-Jabari, operations commander of Hamas’s Al Qassam Brigades, at the start of the recent escalation. To Hamas, they are the enemy within, and vigorous prosecution as well as the occasional high-profile lynching are powerful psychological tools to enforce loyalty and squelch dissent.

Former intelligence officials and experts on the phenomenon said many collaborators are struggling souls who are blackmailed into service by an Israeli government with great leverage over their lives. Some are enlisted when they apply for permits to seek medical treatment in Israel, for example, or in exchange for better conditions or early release from Israeli jails. Others are threatened with having behavior shunned in their religious Islamic communities — alcohol use, perhaps, or adultery — exposed.

“There is no substitute to a human source, because a human source goes into their house, sometimes even into their minds,” said Yaakov Peri, a former head of the Shin Bet, Israel’s domestic intelligence agency. “With all the technology — drones, you name it — you need a background, and you need the assistance from a human source.”

Mr. Peri said Palestinian collaborators might be given money for expenses or a small salary, but “you’ll never be a rich guy.”

Hillel Cohen, a research fellow at the Truman Institute for the Advancement of Peace at the Hebrew University in Jerusalem, who has written two books on the subject, said some Gaza collaborators “do it just for some money” and “some to be part of a big story”; few are actually supportive of Israel, he said, but many have problems with Hamas.

“I interviewed a lot of collaborators, and they have a kind of inferiority complex,” Mr. Cohen explained. “They see the West, Israel, as much better than the Arab. I hear expressions like, ‘We’re worth nothing.’ Sometimes it comes from there, and sometimes it’s part of what the Israeli officers put in their minds.”

Collaboration has underpinned Israeli-Palestinian relations since before there was a modern state of Israel, dating back at least to the Jewish underground that operated during the British Mandate era in the 1930s. The Oslo Accords signed by Israeli and Palestinian negotiators in 1994 even made two villages — one in Gaza, one in the West Bank — safe refuges for about 1,500 Bedouins suspected of spying.

The very definition of collaboration has expanded in recent years. Some in Hamas and more militant groups consider the Palestinian Authority to be aiding the enemy when it coordinates security services in the West Bank with Israel. Since Hamas took control of Gaza in 2007 after winning elections, members of the rival Fatah faction who live here have almost universally been under suspicion. Selling land to Jews can be punishable by death.

Fares Akram contributed reporting from Gaza, and Irit Pazner Garshowitz from Jerusalem.

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Nintendo president apologizes for bulky day-one Wii U firmware update

As we noted in our first impressions, Nintendo’s (NTDOY) Wii U is charting new ground with its wireless GamePad and touchscreen controls that engage gamers in the living room like never before. But before you can even set up the Wii U, a mandatory firmware update is required upon power up. Gamers everywhere were frustrated to learn that the firmware update, which is pegged anywhere between 1GB and 5GB, takes hours to download and could even ”brick” new consoles if the power was cut off. In an email conversation with IGN, Nintendo’s global president and CEO Satoru Iwata said was “very sorry” that Wii U owners were experiencing network issues and that other services such as Nintendo TVii weren’t available at launch. Iwata said he believes “users should be able to use all the functions of a console video game machine as soon as they open the box.” 

Gone are the days when electronics are sold as finished products with set features out of the box. It has become normal for today’s connected electronics to require frequent firmware updates and patches to fix compatibility with other gadgets and to add new features. At what point should consumers stop tolerating devices that don’t work immediately after unboxing? The way we see it, the answer might be “never,” as it’s hard to argue against the fact that new software updates breathe new life into aging consoles.

Iwata also explained that the Wii U’s “Miiverse” online service isn’t meant to replicate existing services such as Xbox LIVE.

“We have not thought that offering the same features that already exist within other online communities would be the best proposal for very experienced game players,” Iwata told IGN.

Nintendo fans can read more Nintendo nuggets over at IGN’s feature that includes mention of a new 3D Super Mario and Zelda game.

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Kellan Lutz, Hugh Jackman Take Bites and Swipes &#38; More Casting News

By Julia Haskins

12/02/2012 at 07:00 PM EST

Kellan Lutz (left) and Hugh Jackman

Christopher Polk/Getty, Han Myung-Gu/WireImage

It's comeback time. Whether seeking revenge or reprising beloved roles, a fresh crop of movies shows that the best characters always come back for more.

Twilight's Kellan Lutz feasts on others as a vampire, but this time, he's utilizing his own body for powers, Zimbio reports.

The actor will star in Tatua as a tattooed assassin whose weapons are extracted from the ink on his body. The process is a strain on the hit man, but he must put that aside when his son is kidnapped by a dangerous foe.

Hugh Jackman is set to reprise his role as Wolverine in
X-Men: Days of Future Past, the Hollywood Reporter. Ian McKellen (Magneto) and Patrick Stewart (Professor Xavier), will also be joining Jennifer Lawrence, James McAvoy, Michael Fassbender and Nicholas Hoult.

Charlize Theron will star in an adaptation of the final installment of a South Korean revenge trilogy, the Hollywood Reporter also says. The original movie revolves around a woman wrongfully imprisoned for 13 years who then sets out to seek her long-awaited revenge. Writer William Monahan says the English-language remake will be "very American – and very unexpected."

The made-for-TV Disney channel movie Life-Size is getting a sequel, Variety reports. Tyra Banks will reprise her role as Eve, the doll who comes to life, and also executive produce the movie. No word yet on whether Lindsay Lohan, who played Eve's owner, will be making a return.

Also coming soon:

Beyoncé won't be slowing down after her Super Bowl performance in February. Just a couple weeks later, she'll introduce her still untitled, feature-length documentary on HBO, Deadline reports. The documentary airs Feb. 16.

Bridesmaids' Rose Byrne will be going through the motions as a newlywed in I Give it a Year, Zimbio reports. As if being newly married wasn't tough enough, the "too perfect" ex Anna Faris will be shaking up an already teetering balance.

Cate Blanchett will be stirring up her wicked ways as the evil stepmother in a live-action adaptation of Disney's Cinderella, also according to Zimbio.

And George Clooney is sticking to his winning formula by joining forces with his Argo team to produce an untitled crime drama, Variety reports.

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner .

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Cliff fight may knock out December rally

NEW YORK (Reuters) - In normal times, next week's slew of U.S. economic data could be a springboard for a December rally in the stock market.

December is historically a strong month for markets. The S&P 500 has risen 16 times in the past 20 years during the month.

But the market hasn't been operating under normal circumstances since November 7 when a day after the U.S. election, investors' focus shifted squarely to the looming "fiscal cliff."

Investors are increasingly nervous about the ability of lawmakers to undo the $600 billion in tax increases and spending cuts that are set to begin in January; those changes, if they go into effect, could send the U.S. economy into a recession.

A string of economic indicators next week, which includes a key reading of the manufacturing sector on Monday, culminates with the November jobs report on Friday.

But the impact of those economic reports could be muted. Distortions in the data caused by Superstorm Sandy are discounted.

The spotlight will be more firmly on signs from Washington that politicians can settle their differences on how to avoid the fiscal cliff.

"We have a week with a lot of economic data, and obviously most of the economic data is going to reflect the effects of Sandy, and that might be a little bit negative for the market next week, but most of that is already expected - the main focus remains the fiscal cliff," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Concerns about the cliff sent the S&P 500 <.spx> into a two-week decline after the elections, dropping as much as 5.3 percent, only to rally back nearly 4 percent as the initial tone of talks offered hope that a compromise could be reached and investors snapped up stocks that were viewed as undervalued.

On Wednesday, the S&P 500 gained more than 20 points from its intraday low after House Speaker John Boehner said he was optimistic that a budget deal to avoid big spending cuts and tax hikes could be worked out. The next day, more pessimistic comments from Boehner, an Ohio Republican, briefly wiped out the day's gains in stocks.

On Friday, the sharp divide between the Democrats and the Republicans on taxes and spending was evident in comments from President Barack Obama, who favors raising taxes on the wealthy, and Boehner, the top Republican in Congress, who said Obama's plan was the wrong approach and declared that the talks had reached a stalemate.

"It's unusual to end up with one variable in this industry, it's unusual to have a single bullet that is the causal factor effect, and you are sitting here for the next maybe two weeks or more, on that kind of condition," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago.

"And that is what is grabbing the markets."

BE CONTRARY AND MAKE MERRY

But investor attitudes and seasonality could also help spur a rally for the final month of the year.

The most recent survey by the American Association of Individual Investors reflected investor caution about the cliff. Although bullish sentiment rose above 40 percent for the first time since August 23, bearish sentiment remained above its historical average of 30.5 percent for the 14th straight week.

December is a critical month for retailers such as Target Corp and Macy's Inc . They saw monthly retail sales results dented by Sandy, although the start of the holiday shopping season fared better.

With consumer spending making up roughly 70 percent of the U.S. economy, a solid showing for retailers during the holiday season could help fuel any gains.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, believes the recent drop after the election could be a market bottom, with sentiment leaving stocks poised for a December rally.

"The concerns on the fiscal cliff - as valid as they might be - could be overblown. When you look at a lot of the overriding sentiment, that has gotten extremely negative," said Detrick.

"From that contrarian point of view with the historically bullish time frame of December, we once again could be setting ourselves up for a pretty nice end-of-year rally, based on lowered expectations."

SOME FEEL THE BIG CHILL

Others view the fiscal cliff as such an unusual event that any historical comparisons should be thrown out the window, with a rally unlikely because of a lack of confidence in Washington to reach an agreement and the economic hit caused by Sandy.

"History doesn't matter. You're dealing with an extraordinary set of circumstances that could very well end up in the U.S. economy going into a recession," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"And the likelihood of that is exclusively in the hands of our elected officials in Washington. They could absolutely drag us into a completely voluntary recession."

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: charles.mikolajczak(at)thomsonreuters.com )

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Effort to Secure Border Crimps Commerce Along It

Samantha Sais for The New York Times

Agua Prieta, Mexico, has a main street directly south of the border fence that is active with people and businesses.

DOUGLAS, Ariz. — When the copper smelters closed, the jobs dried up and the people who used to sustain the small shops along this border city’s commercial strips left to find work elsewhere, the Ortega family looked toward the neighbor to the south, Agua Prieta, Mexico, for a new clientele.

For decades, catering to Mexicans had been a reliable business plan for the Ortegas and many other store owners here, a multigenerational band of believers who have been around too long to give up. But the tight border enforcement prompted by the Sept. 11 attacks — and amplified by the harsh realities and language of drug violence and illegal immigration — gradually made it harder to get across the border legally, then too much of a bother, and finally a discomfiting waste of time.

Like the copper smelter workers, the Mexicans, little by little, also began to disappear.

An unforgiving blow came about two years ago, when the American government stopped issuing visas in Agua Prieta, forcing whoever wanted them to travel 115 miles to Nogales, a costly undertaking for Mexicans relying on lean monthly salaries to survive.

“I understand the need for securing our border,” said Bill Thomas, 64, who runs Thomas Home Furnishings, a store his father founded 59 years ago, 11 blocks from a port of entry now so fortified and congested that the city had to build a road to steer the lines of idling cars waiting to get across away from local streets. “But what we’ve done is, we’ve shut out the honest guy.”

The feeling is the same along much of the Mexican border in Arizona, where an imposing wall of corrugated steel disconnects main streets, shared histories and binational family ties. It has also begun to seep deeper, among business owners and elected officials inside a state known for its iron-fisted approach to illegal immigration.

The Metropolitan Tucson Convention and Visitors Bureau has been running a media campaign in the Mexican border state of Sonora and its neighbor to the south, Sinaloa, to dispel any notions that Arizona is unwelcoming.

(After Arizona passed its strict immigration law in 2010, the Mexican government issued a warning to its citizens, telling them to assume that they could be “harassed and questioned” in Arizona “at any time.”)

On Nov. 16, Tucson’s mayor, Jonathan Rothschild, made his first official trip to Nogales, Mexico, to visit a port of entry that is under expansion and for which he has lobbied for an increase in staffing. At a meeting in October, mayors in the economic development committee at the Maricopa Association of Governments, a regional planning group based in Phoenix, embraced a unifying slogan: “We’re all border communities.”

“Mexicans spend about $2 billion a year in Arizona,” said the committee’s chairman, Thomas L. Schoaf, the mayor of Litchfield Park, a suburb of Phoenix. “They go to the Biltmore” Fashion Park, an upscale mall in Phoenix, and “they go to Flagstaff.”

About 21 million Mexicans cross legally into Arizona every year, Mr. Schoaf said; in Santa Cruz County, which runs along the border, their spending accounts for 40 percent of the sales tax revenue. “A significant part of our economic vitality is related to people who cross the border,” Mr. Schoaf said, “so we need to make the crossing more efficient.”

Erik Lee, the associate director of the North American Center for Transborder Studies at Arizona State University, said old infrastructure and inadequate staffing were largely to blame for the costly and unpredictably long waits at border crossings. While the number of Border Patrol agents has virtually doubled since 2004, to 23,306 from 11,684, the number of customs inspectors, who operate the ports of entry, increased by only 12 percent, to 21,893 from 19,525, according to federal statistics.

On average, it took 66 minutes to cross the border from Nogales, Mexico, to Nogales, Ariz., in 2008, costing the regional economy about $200 million, according to estimates compiled by Mr. Lee and Christopher E. Wilson of the Mexico Institute at the Woodrow Wilson International Center for Scholars.

Projections by the Commerce Department say the average time to get through ports of entry into the United States will rise to 99 minutes by 2017, a delay the department estimates could cost a total of $12 billion for the economies on the two sides.

Looking at his electronic ledger, Josué Lopez, who runs Casa Enrique Uniforms here, a store that his father, who was born in Agua Prieta, bought 39 years ago, said, “There’s a lot of money being lost in the name of security.”

Brenna Rae Goth contributed reporting.

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The Boy Genius Report: Microsoft is blowing it and RIM could too

Who would have thought a couple of years ago that Research In Motion (RIMM) would be on the ropes and Microsoft (MSFT) could be getting close? Well, me… but not many others. Microsoft’s latest strategy of trying to make a no compromise tablet has resulted in, you guessed it, compromise. It’s not as polished as an iPad, it’s more limited in almost every possible way, it’s slow, clunky, unresponsive at times, offers a worse display, weighs more, and is thicker. Plus it costs over $ 100 more when you factor in a Touch Cover or Type Cover keyboard. Plus, you can’t even run Windows applications even though you get the actual Windows desktop.

The best part is the Surface Pro. An even more expensive version of the Surface, an even thicker version of the Surface, and an even heavier version of the Surface, and you get a fan to cool your heating tablet when you’re doing your Excel speadsheets or when Outlook keeps freezing — oh my god why does it freeze so much when you’re typing — and you get half the battery life of the current Surface model.

There’s a very big issue with Microsoft’s strategy of no compromise, because time and time again this company fails to realize that the reason Apple (AAPL) is winning is because Apple choses to compromise.

Apple chooses to throw out the USB port, the DVD drive, the kickstand, the fan, the Intel processor. Apple understands that laptops are still useful but at this point in the game, the only use for a multitouch laptop should be in the trackpad. Microsoft is trying to introduce the Surface Pro as your new laptop, except it doesn’t work well is a variety of situations, especially on your lap. Plus, consumers don’t care, and with enterprises and large companies (and small companies) not rushing out to buy brand new computers or brand new software licenses for their employees and workstations due to cost, and the fact that more and more employees are bringing in their own laptops and also asking for Macs, Microsoft has a tremendous problem.

Compounding Windows 8′s failure is the fact that Microsoft is still not prepared for the consumerization of the enterprise world, Microsoft’s bread and butter, and the reason why Microsoft has $ 60 billion in cash. As Windows licenses erode and Office sales slow, Microsoft isn’t going to have another hugely profitable business to rely on — that’s why this is so scary.

Switching to RIM, the company is actually doing a lot of things right in my book. I respect that everyone there has been huddled up, focused on a single product and operating system and put all of their time into getting it as right as they can. Whether that means anything at all, we’ll soon see; RIM has probably been one of the worst players in the mobile space as far as execution is concerned but Thorsten Heins seems to have a better grasp on where the company can take advantage in different markets and at what price point, though RIM’s market share is declining so rapidly that not even BrickBreaker can save the company there.

I have two concerns from a very high level (in-depth thoughts at a later date) about BlackBerry 10 and the devices RIM is introducing on the hardware front. First off, going with a touch only phone first sends the wrong message to me. What is RIM’s biggest strength? Some would say email, some would say security, most would say the keyboard. Introducing a brand new operating system, with a brand new smartphone that doesn’t feature RIM’s fantastic keyboard feels like a marketing blunder. If there is one single reason BlackBerry owners (yes! they do still exist) still have a BlackBerry, it’s for the keyboard.

Yes, I know, there is a QWERTY BlackBerry 10 smartphone coming just a couple of weeks or months after the first touchscreen device, but these two should have been joined at the hip at the very minimum.

My other concern is RIM is already showing a break in the company’s focus by introducing two different screen sizes from the gate. The BlackBerry L-series will have a 1280 x 768 screen resolution and the BlackBerry N-series have a 720 x 720-pixel display. In my time playing with an N-series prototype, this square resolution felt incredibly awkward and it’s now two screen sizes that RIM’s developer community has to account for when making apps. Add this to the fact that RIM has enough trouble getting developers on board — of course Microsoft is having trouble there, too — and this feels like it’s not the most optimal scenario.  

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Ashley Hebert and J.P. Rosenbaum Are Married

People Exclusive

By Monica Rizzo

12/01/2012 at 06:15 PM EST

J.P. Rosenbaum and Ashley Hebert

Victor Chavez/Getty

It’s official: Bachelorette star Ashley Hebert and her fiancé J.P. Rosenbaum tied the knot Saturday afternoon in Pasadena, Calif.

Surrounded by family, friends and fellow Bachelor and Bachelorette alumni like Ali Fedotowsky, Emily Maynard, and Jason and Molly Mesnick, the couple said "I do" in an outdoor ceremony officiated by franchise host Chris Harrison.

"Today is all about our friends and family," Hebert, whose nuptials will air Dec. 16 on a two-hour special on ABC, tells PEOPLE. "It's about standing with J.P., looking around at all the people we love in the same room there to celebrate our love."

The 28-year-old dentist from Madawaska, Maine, met New York construction manager Rosenbaum, 35, on season 7 of The Bachelorette. The couple became engaged on the season finale.

Hebert and Rosenbaum are the second couple in the franchise's 24 seasons to make it from their show finale to the altar, following in the footsteps of Bachelorette Trista Rehn, who married Vail, Colo., firefighter Ryan Sutter in 2003.

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner .

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