With TV and film production heading overseas, should Uncle Sam get into showbiz?

LOS ANGELES (TheWrap.com) – Is it time for Uncle Sam to go Hollywood?

With the exodus of film and TV production to foreign shores – and with the states’ incentives plans frequently out-gunned by countries outside the U.S. – there is some thought that it may be time for the federal government to step in.

The idea of the federal government helping out Hollywood while it is drowning in red ink is sure to raise hackles in some quarters. But filmmaker Michael Moore, for one, thinks it’s an idea whose time has come. And he’s not alone.

“That is one good thing the government can do in terms of being helpful and supportive, whether it’s filmmaking or other artistic endeavors,” Moore told TheWrap.

And he added, it’s also time for the states to stop fighting each other with differing tax-incentive plans. “I’ve always opposed New Mexico against North Carolina, or Michigan against L.A. I don’t like that. It’s not right. We’re Americans.”

Moore is not alone.

There are reasons to keep TV and film production from going abroad. The industry provides more than 2.4 million American jobs and adds nearly $ 180 billion to the U.S. economy annually and $ 15 billion in federal and state taxes, according to the Motion Picture Association of America.

Joe Chianese, executive VP at showbiz payroll giant Entertainment Partners Financial Solutions, believes the idea of getting the feds involved makes sense.

“You watched the debates and heard both President Obama and Gov. Romney talking about how it’s all about jobs, and they talked about how the manufacturing industry has basically been lost to overseas,” Chianese told TheWrap. “Well, we’re looking at the same sort of situation with the TV and film industry if something isn’t done.”

As he spoke to TheWrap, Chianese was about to set off for Japan, where government and film-industry officials were considering an incentive program that would align them with the more than 30 foreign countries trying to lure U.S. entertainment productions.

“You can’t blame filmmakers for taking their business elsewhere,” he said. “They’re taking their work overseas for the same reasons manufacturers are: It’s cheaper.”

Until recently, the federal government provided some help. Section 181 of the current tax code lowered the cost of capital for domestic film and TV production by providing immediate expensing on the first $ 15 million of production costs. To be eligible, 75 percent of the production had to occur in the U.S.

But it expired at the end of 2011.

California Republican Congressmen David Dreier has co-authored legislation to bring 181 back for another two years, but it is mired in Congress, along with a number of other tax-law extensions.

“Jobs are our No. 1 priority, and this bill will help more people find good jobs in California and across the U.S.,” said Dreier, who represents much of the San Gabriel Valley. “We need to create an environment that will keep entertainment productions here so that caterers, makeup artists and other small businesses that support them can create jobs too.”

Amy Lemistch, executive director of the California Film Commission, shares the world view on keeping show business here.

“We see California’s runaway production problem as a global issue,” she told TheWrap “not a state vs. state issue. People are going to the U.K. and Canada as much as they are going to other states.”

Smaller nations like Sri Lanka have begun offering breaks, and others like New Zealand have ramped up state-of-the-art production infrastructures. Even Iceland recently lured the HBO series “Game of Thrones” and the feature films “Noah” and “Prometheus.”

Particularly galling to California Film Commission officials is when productions set in the state are lured overseas. Recent examples would be the now-canceled Fox TV series “Alcratraz” and the L.A.-set movie “This Means War,” both of which shot in Vancouver.

Unlike Moore, Chianese, a tax specialist who worked with the commission when it was crafting its credits program, sees the federal incentives coming on top of state credits, rather than replacing them.

“You add, say, a 15 percent jobs credit, where companies would get 15 percent of the salary of every hire they make,” he said. “Add that on top of, say, the 25 percent credit California offers, and you’re up to 40 percent credit. That would make a real difference when it comes to keeping entertainment jobs here.”

Chianese said he’d be willing to see Section 181 go away in favor of more direct and immediate incentives. But with Obama and Congress focused on cutbacks and new taxes to pare down the national debt before the end of the year, the timing’s not good now.

It will always be an uphill fight, particularly with the House of Representatives controlled by the budget-conscious GOP.

“You’d face the same question you always do with incentives, which is: Why favor one industry over another?” Chianese said.

Not to mention major blowback from the segments of the right, which see liberal politicians as too tied to Hollywood already.

As for state credits, Hollywood breathed a sigh of relief in late September when California Gov. Jerry Brown signed a two-year extension of the state’s film and TV production-tax credit program. But no one expects it to be a game-changer when it comes to California’s fight to remain the world’s production capital.

New York, for example, is offering 30 percent tax credits, has $ 420 million available and recently added a 25 to 30 percent credit for post-production work. By comparison, California offers a 25 percent credit, has just $ 100 million available and has tougher eligibility rules.

Still, Lemisch said, the extension was critical.

“It sends a signal to the production community that California is committed in the short and long term,” she said. That’s vital, she pointed out, especially for the producers of TV dramas, which are the most desirable shows to land because they’re typically an hour long and shoot multiple episodes.

California’s output of TV dramas fell more than 11 percent last year, while While New York was hitting record production levels.

California does have some built-in advantages that aren’t going away. If you’re based in Hollywood, staying here can be cheaper than going out of state even with incentives, because you’re not paying to ship equipment and transport crews. The state’s infrastructure of studios and post-production facilities is still the most extensive.

But that doesn’t mean other states aren’t beating California to the production punch.

North Carolina – which made headlines when it enticed the feature film “Battlefield Los Angeles” to shoot there instead of in L.A. – is very busy these days. The first “Hunger Games” was filmed there, as was “Iron Man 3.’ NBC’s new drama “Revolution” and Showtime’s “Homeland” are in production there now.

Georgia, too, has seen a recent surge in feature filming. Paramount’s “Flight,” Fox’s “Parental Guidance” and Warner Bros.’ “Trouble With the Curve” all shot there.

(Steve Pond contributed to this report)

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Inyecciones epidurales de esteroides no alivian dolor del nervio ciático

NUEVA YORK (Reuters Health) – Las inyecciones de esteroides

no alivian la ciática, un trastorno común causante de dolor de

piernas y espalda baja, según muestra una revisión de la

literatura médica.

Tras analizar casi dos decenas de estudios sobre miles de

pacientes, un equipo de Australia determinó que las inyecciones

epidurales (en la médula) de corticoesteroides no tenían un

efecto inmediato o prolongado en la neuralgia del nervio ciático

y el alivio pasajero del dolor en las piernas sería

insignificante para los pacientes.

“Queda muy claro que el tratamiento no es una buena opción”,

dijo el coautor del estudio, Chris Maher, del Instituto George

para la Salud Mundial, Sídney, Australia.

Aun así, el uso de las inyecciones epidurales de esteroides

para tratar los dolores de espalda en los pacientes de Medicare

crecieron de 741.000 en el 2000 a casi 1.438.000 en el 2004.

En Estados Unidos, una inyección cuesta varios cientos de

dólares. Y una partida fallada de uno de los esteroides

utilizados en los estudios revisados, la metilprednisolona,

acaba de causar en el país un brote de meningitis fúngica que

infectó al menos a 400 personas y provocó 31 muertes.

Estudios previos ya habían cuestionado la efectividad de las

inyecciones epidurales de esteroides para tratar la ciática, que

comúnmente se atribuye al daño de un nervio.

Ahora, el equipo de Maher reunió los resultados de los

ensayos clínicos de mejor calidad, aleatorizados, para incluir

finalmente 23 estudios sobre un total de 2300 pacientes. El

nivel de dolor se había evaluado con una escala de cero a 100 (a

mayor puntaje, peor dolor).

El equipo observó que las inyecciones no aliviaban el dolor

de espalda de la ciática en el corto o el largo plazo. En cuanto

al dolor de piernas, sólo en el corto plazo (entre dos semanas y

tres meses) surgió una reducción estadísticamente significativa

de seis puntos.

“En una escala de 100 puntos, seis parecen una diferencia

mínima y, para nosotros, quizás ni tenga importancia clínica”,

dijo Maher. “Pensamos que la pregunta está respondida (…) De

modo que en cuanto a la investigación, hay que avanzar sobre

otros tratamientos de la ciática”.

Maher sostuvo que, en lugar de utilizar las inyecciones de

esteroides, los pacientes con ciática deberían consultar al

médico. Otras opciones terapéuticas son los analgésicos comunes,

como el acetaminofeno, que son fármacos que actúan en el sistema

nervioso. La última opción es la cirugía.

FUENTE: Annals of Internal Medicine, online 12 de noviembre

del 2012

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Beating tax cheats key to Italy’s recovery plan

ROME (AP) — Good plumbers may be worth their weight in gold, but when one was spotted zipping around in a bright red Ferrari, Italian tax police were fast on his trail.

Stamping out entrenched tax evasion is crucial to Premier Mario Monti‘s quest to keep Italy from succumbing to the European debt crisis, and it is critical to fellow eurozone members in more dire straits, such as Greece and Spain — which are also notorious for making cheating the taxman a way of life.

Indeed, Greece’s international rescue creditors have been pressing Greece for two years to reform its ailing tax system, citing poor collection as a key factor keeping the country mired in crisis. In Spain, where tax fraud is rampant, as much as €90 billion ($ 150 billion) is lost each year to tax fraud — the equivalent of the country’s national debt, according to Spain’s main tax inspectors union.

To succeed in Italy, authorities will have to catch the legions of self-employed and small business owners who brazenly lie about their earnings, like the plumber in the eastern town of Pescara, who socked away undeclared income in 30 bank accounts, or a successful pastry shop owner in Calabria, who on his tax return claimed he was earning next to crumbs.

And those are the less sophisticated schemers.

Tax police officials say that wealthy Italians, their companies and foreigners who make their money in Italy are increasingly trying to avoid taxes by using such strategies as falsely declaring that their base of operations or residence is abroad.

Another daunting challenge is the so-called “submerged” economy, a term embracing Italians who declare only a fraction or nothing at all of their earnings — and dentists, lawyers, doctors and other big-earning professionals are frequently among the worst offenders.

Tax evasion of all types in Italy totals about euros 240 billion ($ 300 billion), or 15 percent of the country’s gross domestic product of €1.6 trillion ($ 2 trillion), tax police estimate. Winning the war on tax cheats could therefore more than wipe out the country’s budget deficit, which is expected to increase to euros 42 billion ($ 53 billion), or 2.6 percent of GDP this year. That would start knocking away at the nation’s colossal public debt of €2 trillion ($ 2.5 trillion), or 125 percent of GDP.

But “big international frauds are up,” lamented Lt. Col. Gianluca Campana, in charge of the income tax unit revenue protection office at the Guardia di Finanza, Italy’s financial police corps which reports to the Economy Ministry.

The entrenched practice by many cafes, eateries, hair dressers and similar small business of neglecting to give customers mandatory cash register receipts commonly grabs the attention in crackdowns on tax evasion in Italy.

But, cautioned Campana, “one false (big business) invoice can equal no cash register receipts for coffees for two months.”

Over all of 2011, the total of non-declared income discovered by tax police amounted to some €50 billion ($ 65 billion), of which some 20 percent was due to international tax evasion, he said. By comparison, in the first nine months of this year, tax police discovered some €40 billion in undeclared income, with 30 percent of that blamed on international tax evasion, Campana said.

With the economic crisis shrinking bottom lines, and Italy increasingly on the hunt for big-time evasion, especially by big businesses, “there is a tendency to move capital abroad, using maneuvers apparently legal but which really are not,” Campana said. A classic technique consists of declaring one’s formal residence abroad in tax havens like Monte Carlo. Also common are companies that clearly have their business base in Italy but claim it is abroad in countries with far lower tax brackets.

Campana is armed with three degrees, including a masters in tax law from Milan’s Bocconi University, the prestigious economics institute formerly headed by Monti. He brings skills to this specialized police corps that are as finely tuned as sharp-shooting.

“We are going after the big cases (of evasion) in order to rake in more money,” Campana said.

The Ferrari-driving plumber hid some €2 million ($ 2.6 million) of his income over several years by giving his customers invoices — for jobs ranging from fixing leaks to installing new bathrooms — for the actual cost of his work, but kept a second, false registry of much lower figures for tax purposes, said Pescara tax police Col. Mauro Odorisio.

Armed with a 2008 law, authorities confiscated assets belonging to the plumber equivalent to the approximately €1 million ($ 1.3 million) they contend he owed in taxes, Odorisio said.

With Ferraris in red or yellow, and snazzy Porsches parked inside, Guardia di Finanza garages practically resemble luxury car dealerships.

The cars get sold to help recoup unpaid taxes and interest.

Overall, tax revenues in Italy were up by 4.1 percent, says the Economy Ministry, when comparing figures from the first eight months of 2012 with the same period in 2011, but much of that was due to new taxes, and not necessarily a revolution in citizens’ consciences about tax obligations.

Monti’s recipe relies heavily on taxes that are nearly impossible to avoid, such as sales tax. He also revived a property tax that his populist predecessor, Premier Silvio Berlusconi, had abolished in a promise to voters.

The ministry’s report last month noted that the property tax figured prominently in the “tendency toward growth” in tax revenues. But sales tax revenue dropped slightly despite higher sales tax rates, indicating that consumers were feeling the pinch of the stagnant economy.

The heavier fiscal burden seems to have driven some honest citizens to rebel against the engrained culture of tax evasion.

The number of phone calls from the public to the tax police’s hotline to report stores, restaurants and other businesses that didn’t give customers sales receipts has almost doubled in the first nine months of this year, compared with the same period in 2011.

It’s apparently dawning on Italians that shirking taxes in the end only costs them, in terms of ever-higher levies and cutbacks in public services.

Citizens now increasingly understand that “the lack of revenue over time caused by tax evaders forced the government to stiffen the tax burden on categories where you can’t evade taxes,” Campana said, referring to workers whose taxes are deducted from paychecks. Another area where evasion is close to impossible is real estate ownership.

Odorisio noted the crackdown included extending the statute of limitations on tax evasion from six to eight years and establishing prison as a penalty for big-time evasion.

Other weapons include a measure promoted by the Monti government that limits cash payments to no more than €1,000. Paying by credit card or personal check is a relatively new habit for Italians, who are used to carrying wads of cash in their pockets, even for big-ticket items like home renovations or vacations.

Past governments in Italy sometimes resorted to tax amnesties to try to boost revenues. But critics, contending some Italians counted on such a possibility, described that strategy as only perpetuating the tax cheat culture.

Spain hasn’t had much success with its own tax amnesty introduced by the conservative government in March. That measure, expiring soon, allows undeclared assets or those hidden in tax havens to be repatriated by paying a 10 percent tax without criminal penalty. The amnesty is estimated to recuperate far less than the expected €2.5 billion ($ 3.25 billion).

Greece saw demands for tax system reform from international rescue creditors added on to conditions for future rescue loan payments, as Greek authorities acknowledged that a high-profile campaign to crack down on major tax cheats has produced disappointing results.

The cash-strapped government over the last 10 months recovered just €19 million ($ 25 million) of the €13 billion ($ 17 billion) of arrears on the list. A prominent Greek magazine publisher recently tapped anger over rich tax evaders by publishing a list of people allegedly holding Swiss bank accounts. He was acquitted this month of breaching privacy laws.

Meanwhile, Italian tax police are chasing after cheats who have shown some of the most chutzpah about not paying their fair share of taxes, like the Padua woman who advertised on the Internet that she had a couple of “cash-only” bed and breakfast rooms to let.

Tax police discovered the lodgings are part of an apartment in public housing she was given after falsely declaring she was indigent on her annual tax forms.

____

AP reporters Derek Gatopoulos in Athens and Ciaran Giles in Madrid contributed to this report.

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Facebook stock up as lock-up expires on largest block of shares

SAN FRANCISCO (Reuters) – Shares of Facebook Inc jumped 10 percent in early trading on Wednesday, even as the biggest block of shares held by insiders became eligible for sale for the first time since the social media company’s disappointing debut in May.

In heavy morning trading, Facebook gained $ 2.02 to $ 21.89.

“While the lock-up is expiring, there is nothing requiring anybody to sell,” said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York. “Given the low price, these long-term holders are deciding to hold the stock and that is lifting it here as the fear of the expiration subsides.”

Roughly 800 million Facebook shares could begin trading on Wednesday after restrictions on insider selling were lifted on the biggest block of shares since the May initial public offering.

The lock-up expiration greatly expanded the 921 million-share “float” available for trading on the market until now.

Facebook, the world’s No. 1 online social network, became the only U.S. company to debut with a market value of more than $ 100 billion. But its value has dropped nearly 50 percent since the IPO on concerns about its long-term money-making prospects.

Insider trading lock-up provisions started to expire in August, and the rolling expirations have added to the pressure on Facebook’s stock.

Pivotal Research Group analyst Brian Wieser said he didn’t expect Facebook insiders to sell all of their shares as the lock-ups expired.

“I would expect heavy volumes over the next few weeks, but not undigestible volumes,” said Wieser. By his estimates, roughly 486 million of the nearly 800 million newly freed Facebook shares will be sold.

There is some evidence that the heavy interest in shorting the stock was dissipating, given the poor performance since it first sold shares in May.

According to Markit’s Data Explorers, about 28 percent of the shares available for short-selling were being borrowed for that purpose, down from a high of more than 80 percent in early August.

Similarly, SunGard’s Astec Analytics, which also tracks interest in shorting, noted in a comment on Tuesday that the cost of borrowing Facebook shares is down more than 50 percent since the beginning of the month.

“Everything would seem to indicate the market is losing its appetite to short Facebook,” wrote Karl Loomes, market analyst at Astec.

Several members of Facebook’s senior management have sold millions of dollars worth of shares in recent weeks through pre-arranged stock trading plans as lock-up restrictions expired.

Chief Operating Officer Sheryl Sandberg has sold roughly 530 million shares this month, netting just over $ 11 million, though she still owns roughly 20 million vested shares in Facebook.

In August, Facebook board member Peter Thiel sold roughly $ 400 million worth of Facebook stock, the majority of his stake, when an earlier phase of lock-up restrictions expired.

Facebook’s 28-year-old chief executive, Mark Zuckerberg, has committed to not sell any shares before September 2013.

(Reporting by Alexei Oreskovic; Editing by Jeffrey Benkoe)

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FBI finds classified docs in Petraeus' lover's house

Paula Broadwell, the author who allegedly had an affair with former CIA
Director David Petraeus, is suspected of storing significant amounts of
military documents, including classified material, at her home,
potentially in violation of federal law.

A source familiar with case told ABC News that Broadwell admitted to the
FBI she took the documents from secure government buildings. The
government demanded that they all be given back, and when federal agents
descended on her North Carolina home on Monday night it was a
pre-arranged meeting.

Prosecutors are now determining whether to charge Broadwell with a
crime, and this morning the FBI and military are poring over the
material. The 40-year-old author, who wrote the biography on Gen.
Petraeus "All In," is cooperating and the case, which is complicated by
the fact that as an intelligence officer in the U.S. Military Reserve
she had security clearance to review the documents.

FULL COVERAGE: David Petraeus Scandal

The FBI found classified material on a computer voluntarily handed over
by Broadwell earlier in the investigation. Prosecutors will now have to
determine how important the classified material is before making a final
decision. Authorities could decide to seek disciplinary action against
her rather than pursue charges.

Senior FBI officials are expected to brief the House and Senate
Intelligence Committees today on their handling of the Petraeus
investigation. The officials are expected to lay out how the case was
developed and argue that there were no politics involved.

The case is so critical that FBI Director Robert Mueller may attend to
defend the bureau, ABC News has learned. Members of Congress have been
angry that they were not informed about the case before the story was
reported by the media, but FBI officials maintain that their guidelines
forbid them from discussing ongoing criminal cases.

This summer, Florida socialite and "honorary ambassador" to the military Jill Kelley
received anonymous emails accusing her of flaunting a friendly
relationship with military brass in Tampa. Kelley then called the FBI,
which traced those emails back to Broadwell's computer. Investigators
are said to have then found emails in Broadwell's inbox that pointed to
an intimate affair with Petraeus, who on Friday admitted to the affair
and announced his resignation as CIA director.

See the timeline of the Petraeus/Broadwell affair HERE.

The FBI has now uncovered "potentially inappropriate" emails between
Gen. John Allen, the commander of American forces in Afghanistan, and
Kelley, according to a senior U.S. defense official who is traveling with
Defense Secretary Leon Panetta. The department is reviewing between
20,000 and 30,000 documents connected to this matter, the official said.
The email exchanges between Kelley and Allen took place from 2010 to
2012.

The U.S. official said the emails were "innocuous" and mostly about
upcoming dinner parties and seeing him on TV. Allen denies he was
involved in an affair, a Pentagon official said. An intermediary for
Allen told ABC News that Allen and his wife are friends with Kelley and
her husband and most of the emails were sent from Kelley to Allen's
wife.

A U.S. official said Allen may have triggered the investigation when he
got an anonymous email a few months ago that was traced to Broadwell.
The email had a "Kelley Patrol" return address or subject line and
painted Kelley as a seductress, which Allen found alarming and mentioned
to Kelley in a subsequent email, the official said.

The official described Kelley as a "nice, bored rich socialite who drops
the honorary from her title... and tells people she is an ambassador.
She gets herself in anything related to Centcom and all the senior
people and has been for years."

MORE: Jill Kelley and Twin Closely Tied to Top Brass

Leon Panetta: 'No One Should Leap to Any Conclusions' Regarding Gen. Allen

Panetta cautioned that "no one should leap to any conclusions" about allegations against Allen over the investigation.

Panetta said he supports Allen, who has been in command in Kabul since
July 2011. He took over that summer for Petraeus, who retired from the
Army to take over as the head of the CIA.

"He certainly has my continued confidence to lead our forces and to
continue the fight," Panetta said at a news conference in Perth,
Australia, Wednesday.

Panetta declined to explain the nature of Allen's correspondence with
Kelley, connected to the scandal that led to Petraeus' resignation last
week as director of the CIA.

Secretary of State Hillary Rodham Clinton, who appeared with Panetta,
declined to comment on the Allen case, but insured the scandal has not
harmed the war effort.

"There has been a lot of conversation, as you might expect, but no
concern whatsoever being expressed to us because the mission has been
set forth and it's being carried out," Clinton said.

Allen had been nominated as the next commander of U.S. European Command
and the commander of NATO forces in Europe, and despite President
Obama's backing, the nomination has been put on hold. The change of
command at NATO is currently slated to not take place until March at the
earliest.

Allen was supposed to appear before a Senate confirmation hearing this
Thursday alongside his designated replacement, Marine Gen. Joseph
Dunford. Panetta said that while the matter is being investigated by
the Defense Department IG, Allen will remain in his post as commander of
the International Security Assistance Force, based in Kabul.

Also Read

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Actor Channing Tatum dubbed People’s sexiest man alive

NEW YORK (Reuters) – Actor Channing Tatum, who set female hearts fluttering in the summer movie hit “Magic Mike”, was named the sexiest man alive by People magazine on Wednesday.

“My first thought was, ‘Y’all are messing with me,” Tatum told the magazine after hearing the news.

The 32-year-old actor, who is married to actress Jenna Dewan-Tatum, is training to play an Olympic athlete in his upcoming film, “Foxcatcher”.

The couple, who have been married since 2009, are ready to start a family, according to People.

“The first number that pops into my head is three, but I just want one to be healthy and then we’ll see where we go after that,” he told the magazine.

Tatum joins a long list of Hollywood heartthrobs who also have also received the “sexiest man” title from the magazine including Brad Pitt, Johnny Depp, Ryan Reynolds, George Clooney and Matt Damon.

(Reporting by Patricia Reaney; Editing by Maureen Bavdek)

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One in three open to traveling for medical treatment, poll finds

NEW YORK (Reuters) – Looking for an affordable face lift without breaking the bank? Want to combine a tummy tuck with two weeks in the sun? You’re not alone.

Nearly a third of people surveyed around the world say they are open to the idea of medical tourism – traveling abroad to enjoy cheaper medical or dental treatment, according to a new Ipsos poll of 18,731 adults in 24 countries.

Indeed, 18 percent said they would definitely consider it.

“The concept of medical tourism is well accepted in many countries,” said Nicolas Boyon, senior vice president of Ipsos Public Affairs.

“With the exception of Japan there are at least one third of consumers in every country we covered that are open to the idea,” he said in an interview.

Whether for economic reasons or perceptions of superior treatment elsewhere, for treatments ranging from cosmetic to life-saving surgeries, Indians, Indonesians, Russians, Mexicans and Poles were the most open to the idea of being medically mobile.

Thirty-one percent or more people in each of those countries said they would definitely consider traveling for a medical or dental treatment.

Conversely, people in Japan, South Korea, Spain and Sweden were least likely to be medical tourists.

Boyon said it was not surprising that men and women from emerging nations would be medically mobile if the treatments were cheaper.

“This probably reflects perceptions of medical care in other countries that is superior to what is available at home,” he said.

But he was intrigued by the percentage of people in developed nations such as Italy, where 66 percent said they would definitely or probably consider medical tourism, along with Germany (48 percent), Canada (41 percent) and the United States, where 38 percent of people were open to the idea.

“It is a reflection that the medical profession is no longer protected from globalization,” Boyon said.

RISKS VS. BENEFITS

Although medical tourism spans a range of treatments, the most common are dental care, cosmetic surgery, elective surgery and fertility treatment, according to an OECD report.

“The medical tourist industry is dynamic and volatile and a range of factors including the economic climate, domestic policy changes, political instability, travel restrictions, advertising practices, geo-political shifts, and innovative and pioneering forms of treatment may all contribute towards shifts in patterns of consumption and production of domestic and overseas health services,” the report said.

Various studies using different criteria have estimated that anywhere between 60,000 to 750,000 U.S. residents travel abroad for health care each year, according to the Centers for Disease Control and Prevention.

Along with variations among countries, the Ipsos survey showed that younger adults under 35 years of age were more likely in most countries to consider medical tourism, than people 50 to 64 years old.

In India, 86 percent of young adults said they would consider medical tourism, along with 77 percent in China, and 71 percent in Italy.

Boyon suggested that the cost of travel, proximity, borders and quality of care may also be factors considered by potential medical tourists. In both Italy and Germany, about 20 percent of adults said they would definitely consider medical tourism. Both countries are near Hungary, a popular destination for health treatments.

Ipsos conducted the poll in Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Great Britain, Hungary, India, Indonesia, Italy, Japan, Mexico, Poland, Russia, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Turkey and the United States.

(Editing by Elaine Lies and Bernadette Baum)

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

___

Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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New Lumia phones seen winning Nokia more time

HELSINKI (Reuters) – Nokia‘s new Lumia smartphones are trickling into the market and early signs suggest they may sell well enough to give the handset maker more time in its fight against industry leaders Samsung and Apple.

But investors shouldn’t expect a quick turnaround for the struggling Finnish cellphone maker, with rival gadgets like mini tablet computers vying for consumers’ attention, analysts said.

“Positive reviews are a great start but as we have seen many times before these won’t deliver strong sales volumes on their own,” said Pete Cunningham, an analyst at research firm Canalys.

Successful sales of the latest Lumia 920 and 820 models are crucial for Nokia’s survival. The former market leader is burning through cash while it loses share in both high-end smartphones and cheaper handsets.

FIM Securities analyst Michael Schroder forecast Nokia will sell 1-3 million of the new models this quarter. It sold 2.9 million older Lumia models in the third quarter, compared to Apple’s sales of around 26.6 million iPhones in the same period.

“In any case the uptake will not be massive,” he predicted.

Lumia’s sales could serve a verdict on Chief Executive Stephen Elop‘s decision in February 2011 to partner with Microsoft instead of using Google‘s Android or continuing to develop Nokia’s own operating system.

Investors had feared poor reviews and weak sales could bring an end to the company’s smartphone business early next year.

So far, consumer reviews seem to favor the feel and look of the new models, which include high-definition cameras and the latest Microsoft Windows Phone 8 software.

“It (the Lumia 920) is very similar in appearance to the Lumia 900, but has curved glass, rounded edges, and curved back so it feels great in your hand. It is a dense device, but if you look at all the pros and cons the heft is worth it,” said a reviewer for tech website ZDNet.

That’s an improvement from the market’s reaction when the new model was first unveiled. The shares slumped 13 percent that day with investors citing a lack of a “wow” factor.

MAKE OR BREAK

Nokia is taking a gradual approach to launching the phones, and availability is expected to vary by market for the next few weeks, compared with Apple’s iPhone models which usually go on sale on the same day to global fanfare.

“While we are very impressed with the hardware features of the Lumia 920 and the improved software functionality of Windows Phone 8, we believe a focused launch to drive steady sales growth is necessary,” said Canaccord Genuity analyst Michael Walkley.

In Canada, one of the earliest launch markets, carrier Rogers Communications has trained its sales staff more to sell the latest Lumias than the previous models, said John Boynton, Rogers’ executive vice president of marketing.

He predicted the phones would be popular with first-time smartphone users, thanks to homescreens with tile-like icons designed to help users navigate applications and functions.

“They’re a little nervous at some of the more complex smartphones that are out there,” he said. “The tile format is a really, really simplified way for people to get comfortable using smartphones.”

In France, retail staff have become more confident in explaining Windows Phones to their customers, according to Laurent Lame, devices marketing chief at SFR which is the country’s second-biggest mobile operator.

“They know the product better after six months of good sales of the Lumia 610,” Lame said, adding he was now more optimistic about the Nokia-Microsoft partnership. “For once, with Windows 8, we are not starting from zero.”

Telefonica Deutschland Chief Executive Rene Schuster said he was “very, very pleased” with the early progress of Lumia sales.

Some retailers were more cautious, however, and in some cities there were no demonstration models for customers to test.

A salesman in an O2 store at the Zeil, Frankfurt’s busiest shopping area, said the store could take orders for the phone but could not show it. Demand was “okay, but not huge,” he said.

Analysts also expect tough competition during the pre-Christmas shopping season from the likes of Samsung’s Galaxy S III and Apple’s iPhone 5. Taiwan’s HTC has also introduced smartphones running Windows Phone 8 software.

Other rival gadgets include Apple’s iPad mini as well as cheaper tablets from Google and Amazon.

The stakes could not be higher for Nokia’s Elop, who said in February 2011 the company’s transition would take two years.

“This is absolutely a make-or-break phone for the Windows Phone strategy,” FIM Securities’ Schroder said. “If it fails, they have to take a whole new course.” (Additional reporting by Allison Martell in Toronto, Leila Abboud in Paris, Harro Ten Wolde in Frankfurt and Tarmo Virki in Helsinki; Editing by Mark Potter)

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'Inappropriate’ emails, ‘shirtless’ photos

Paula Broadwell and Gen. David Petraeus in July of 2011. (Photo by ISAF via Getty Images)It seemed the story behind Gen. David Petraeus' resignation as director of the CIA  couldn't get stranger. New reports, however, now indicate that Marine Gen. John Allen, another well-respected, high-ranking general, might be involved in the growing scandal.

On the surface, the case so far involves: the FBI; a slew of allegedly inappropriate emails (between Petraeus and his biographer, Paula Broadwell, Allen and socialite Jill Kelley, and allegedly threatening ones Broadwell sent to Kelley); the FBI agent who started the probe, who's now being investigated for sending "shirtless" photos to Kelley; and, as reported by the New York Post Tuesday morning, a child custody battle involving Kelley's twin sister that allegedly concerns both Petraeus and Allen.

To help sort things out, here's a rundown of events, and where things currently stand.

Jill Kelley, a 37-year-old from Tampa, Fla., who organized local social events for the military as a volunteer, became friends with Petraeus and his family when he was stationed in Florida. Last spring, she began receiving harassing emails from an anonymous account, and alerted a friend who worked for the FBI.

The FBI began an investigation, which eventually uncovered an affair between Petraeus and Broadwell, both of who are married. The FBI believes Broadwell sent the harassing emails to Kelley because she perceived her to be a rival for Petraeus' affections.

The FBI found something else during the inquiry: 20,000 to 30,000 pages of emails and other communications between Kelley and Allen, the top commander in Afghanistan and a nominee to become the new NATO supreme allied commander for Europe.

A senior defense official has told the Washington Post that the emails were "potentially inappropriate." Other sources strongly denied to the Post that anything inappropriate ever happened between Allen and Kelley, but said that Allen may have used terms of endearment like "sweetheart" to refer to Kelley in his emails to her. The source said Allen, who is married, is "embarrassed" by this, but did not have an affair with her. Allen also received an email from the same account that was harassing Kelley, though it's unclear what the email said. Both Petraeus and Allen also wrote letters to a Florida court on behalf of Kelley's twin sister, who was locked in a nasty custody fight with her husband. The generals vouched for the sister's abilities as a mother, The Post reported.

The Tampa party planner, who is married and has three children, is also at the center of another bizarre twist in the case. The Wall Street Journal reported Monday night that Kelley's FBI agent friend was taken off the Petraeus case and is currently being investigated because his superiors discovered that he sent "shirtless" photos to Kelley before the probe started. After the agent was removed from the case, the agent contacted Washington Rep. David Reichert to warn him that he thought FBI leaders would sweep the investigation under the rug.

Meanwhile, the Daily Beast, citing an anonymous source, reports that the harassing emails allegedly sent from Broadwell to Kelley did not say "stay away from my guy" as previously reported, and did not even directly reference Petraeus. The source described the tone of the emails as "more like, 'Who do you think you are? You parade around the base. You need to take it down a notch.'" The Wall Street Journal reported that one email, without elaborating, asked Kelley if her husband knew what she was doing. Another said the sender knew Kelley had touched "him," without specifying who the "him" was.

And, the AP has uncovered the trick Broadwell and Petraeus used to email each other without creating an online trail. The pair set up anonymous email accounts and drafted emails to each other without ever pushing "send." Each one could log on to the other account and click the "drafts" folder to see if a message had been left for them. This avoids creating an easily traceable email trail, the AP reported.

One question  the Daily Beast raised is why the FBI investigated the harassing emails sent to Kelley in the first place. There were no overt threats, such as "I'll kill you," in the emails, and some wonder if  Kelley's friendship with the FBI agent may be why the agency  investigated what seemed like a humdrum case better suited to local authorities.

Broadwell's father, for one, told the New York Daily News that he thinks the scandal is a smokescreen for a bigger story. "This is about something else entirely, and the truth will come out," Broadwell's father, Paul Krantz, told the Daily News. "There is a lot more that is going to come out."

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