Gruesome video raises concerns about Syria rebels

























BEIRUT (AP) — A video that appears to show a unit of Syrian rebels kicking terrified, captured soldiers and then executing them with machine guns raised concerns Friday about rebel brutality at a time when the United States is making its strongest push yet to forge an opposition movement it can work with.


U.N. officials and human rights groups believe President Bashar Assad‘s regime is responsible for the bulk of suspected war crimes in Syria‘s 19-month-old conflict, which began as a largely peaceful uprising but has transformed into a brutal civil war.





















But investigators of human rights abuses say rebel atrocities are on the rise.


At this stage “there may not be anybody with entirely clean hands,” Suzanne Nossel, head of the rights group Amnesty International, told The Associated Press.


The U.S. has called for a major leadership shakeup of Syria’s political opposition during a crucial conference next week in Qatar. Washington and its allies have been reluctant to give stronger backing to the largely Turkey-based opposition, viewing it as ineffective, fractured and out of touch with fighters trying to topple Assad.


But the new video adds to growing concerns about those fighters and could complicate Washington’s efforts to decide which of the myriad of opposition groups to support. The video can be seen at http://bit.ly/YxDcWE .


“We condemn human rights violations by any party,” U.S. State Department spokeswoman Victoria Nuland said, commenting on the video. “Anyone committing atrocities should be held to account.”


She said the Free Syrian Army has urged its fighters to adhere to a code of conduct it established in August, reflecting international rules of war.


The summary execution of the captured soldiers, purportedly shown in an amateur video, took place Thursday during a rebel assault on the strategic northern town of Saraqeb, said the Britain-based Syrian Observatory for Human Rights, an activist group.


It was unclear which rebel faction was involved, though the al-Qaida-inspired Jabhat al-Nusra was among those fighting in the area, the Observatory said.


The video, posted on YouTube, shows a crowd of gunmen in what appears to be a building under construction. They surround a group of captured men on the ground, some on their bellies as if ordered to lie down, others sprawled as if wounded. Some of the captives are in Syrian military uniforms.


“These are Assad’s dogs,” one of the gunmen is heard saying of those cowering on the ground.


The gunmen kick and beat some of the men. One gunman shouts, “Damn you!” The exact number of soldiers in the video is not clear, but there appear to be about 10 of them.


Moments later, gunfire erupts for about 35 seconds, screams are heard and the men on the floor are seen shaking and twitching. The spray of bullets kicks up dust from the ground.


The video’s title says it shows dead and captive soldiers at the Hmeisho checkpoint. The Observatory said 12 soldiers were killed Thursday at the checkpoint, one of three regime positions near Saraqeb attacked by the rebels in the area that day.


Amnesty International’s forensics analysts did not detect signs of forgery in the video, according to Nossel. The group has not yet been able to confirm the location, date and the identity of those shown in the footage, she said.


After their assault Thursday, rebels took full control of Saraqeb, a strategic position on the main highway linking Syria’s largest city, Aleppo — which rebels have been trying to capture for months — with the regime stronghold of Latakia on the Mediterranean coast.


On Friday, at least 143 people, including 48 government soldiers, were killed in gunbattles, regime shelling attacks on rebel-held areas and other violence, the Observatory said.


Of the more than 36,000 killed so far in Syria, about one-fourth are regime soldiers, according to the Observatory. The rest include civilians and rebel fighters, but the group does not offer a breakdown.


Daily casualties have been rising since early summer, when the regime began bombing densely populated areas from the air in an attempt to dislodge rebels and break a battlefield stalemate.


Karen Abu Zayd, a member of the U.N. panel documenting war crimes in Syria, said the regime is to blame for the bulk of the atrocities so far, but that rebel abuses are on the rise as the insurgents become better armed and as foreign fighters with radical agendas increasingly join their ranks.


“The balance is changing somewhat,” she said in a phone interview, blaming in part the influx of foreign fighters not restrained by social ties that bind Syrians.


Abu Zayd said the panel, though unable to enter Syria for now, has evidence of “at least dozens, but probably hundreds” of war crimes, based on some 1,100 interviews. The group has already compiled two lists of suspected perpetrators and units for future prosecution, she said.


Many rebel groups operate independently, even if they nominally fall under the umbrella of the Free Syrian Army. In recent months, rebel groups have formed military councils to improve coordination, but the chaos of the war has allowed for considerable autonomy at the local level.


“The killing of unarmed soldiers shows how difficult it is to control the escalation of the conflict and establish a united armed opposition that abides by the same ground rules and norms in battle,” said Anthony Skinner, an analyst at Maplecroft, a British risk analysis company.


Rebel commanders and Syrian opposition leaders have promised human rights groups that they would try to prevent abuses. However, New York-based Human Rights Watch said in a report in September that statements by some opposition leaders indicate they tolerate or condone extrajudicial killings.


Free Syrian Army commanders contacted by the AP on Friday said they were either unaware or had no accurate details about the latest video.


Ausama Monajed, a member of the Syrian National Council, the main opposition group in exile, called for the gunmen shown in the video to be tracked down and brought to justice.


He added, however, that atrocities committed by rebels are relatively rare compared to what he said was a “massive genocide by the regime.”


Regime forces have launched indiscriminate attacks on residential neighborhoods with tank shells, mortar rounds and bombs dropped from warplanes, devastating large areas. In raids of rebel strongholds, Assad’s forces have carried out summary executions, rights groups say.


Rebels have also targeted civilians, setting off car bombs near mosques, restaurants and government offices. Human Rights Watch said in September it collected evidence of the summary executions of more than a dozen people by rebels.


In August, a video showed several bloodied prisoners being led into a noisy outdoor crowd in the northern city of Aleppo and placed against a wall before gunmen shot them to death. That video sparked international condemnation, including a rare rebuke from the Obama administration.


The latest video emerged on the eve of a crucial opposition conference that is to begin Sunday in Qatar’s capital of Doha. More than 400 delegates from the Syrian National Council and other opposition groups are expected to attend to choose a new leadership.


U.S. Secretary of State Hillary Rodham Clinton has called for a more unified and representative opposition, even suggesting the U.S. would handpick some of the candidates.


Clinton’s comments reflected growing U.S. impatience with the Syrian opposition, which, in turn, has accused Washington of not having charted a clear path to bringing down Assad.


The Syrian National Council plans to elect new leaders during the four-day conference but is cool to a U.S. proposal to set up a much broader group and a transitional government, said Monajed, the SNC member who runs a think tank in Britain.


U.S. officials have said Washington is pushing for a greater role for the Free Syrian Army and representation of local coordinating committees and mayors of liberated cities in Syria.


Nuland said that it would be easier for the international community to deliver humanitarian assistance to civilians and non-lethal aid to the rebels once a broader, unified opposition leadership is in place.


Such a body could also help persuade Assad backers Russia and China “that change is necessary” and that Syria’s opposition has a better plan for the country than the regime, she said.


___


Associated Press writer Matthew Lee in Washington contributed to this report.


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‘Wreck-It Ralph’ celebrates video-game nostalgia

























LOS ANGELES (AP) — In Disney’s “Wreck-It Ralph” opening Friday, the title character is the bad guy from a fictional 1980s video game. Despite faithfully doing his job well for 30 years, he gets no respect at work, so he escapes through the wires of Litwak’s Family Fun Center searching for another game where he might prove his worth.


Along the way, Ralph takes viewers on a nostalgic trip through the history of video games, from the blocky, eight-bit look of the ’80s through the swirly, colorful, Nintendo 64-inspired games of the ’90s to the gritty, ultra-detailed first-person shooters of today.





















For director Rich Moore and the 450 artists and animators behind the Walt Disney Animation Studios production, video games are as integral a part of childhood as the green army men and pull-string cowboys celebrated in Pixar’s “Toy Story” films.


“There’s a lot of history in video gaming — serious nostalgia,” Moore said. “The worlds of video games are so fertile. They cover everything, and so many different genres. You can kind of make up whatever you want and it can feel like a game.”


Besides the scores of fictional game characters featured in the film, there’s also familiar arcade favorites such as Q(asterisk)Bert, Clyde (the orange ghost from Pac-Man), Sonic the Hedgehog and Zangief from “Street Fighter.”


“It’s pretty awesome to animate game characters that you knew as a child,” said animation supervisor Renato dos Anjos. “It’s like living in a dream world. All your favorite heroes and villains are in your hands.”


“Wreck-It Ralph” centers on Ralph (John C. Reilly), the 9-foot, 643-pound bad guy from the ’80s video game “Fix-It Felix Jr.” Ralph’s job is to wreck the apartments of Niceland so Felix (Jack McBrayer) can fix them. But while Felix is lauded and loved for his efforts, Ralph is ostracized to a trash heap on the edge of town. Fed up and bummed out — especially when he realizes he wasn’t invited to a 30th anniversary party for “Fix-It Felix Jr.” — Ralph goes rogue, tripping through the wires of the arcade into games where he doesn’t belong.


He’s drawn to “Hero’s Duty,” a contemporary shooting game led by tough-as-battle-armor Sergeant Calhoun (Jane Lynch), in which soldiers who destroy the invading CyBugs win a glittery medal — tangible proof of their heroic efforts. With such a trophy, Ralph figures the Nicelanders would have to appreciate him. But he isn’t programmed to handle such ultra-violent play, and when things go awry, Ralph finds himself trapped in the pink-hued, candy-filled world of Sugar Rush. Here he meets another video-game misfit, Vanellope Von Schweetz (Sarah Silverman), whose pixelated programming glitch makes her an outcast.


Reilly, McBrayer and Silverman all grew up as gamers, and say bringing life to their animated characters called upon the same imagination and determination gaming did when they were kids.


“If you were born any time after 1965, when I was born, video games made a huge impression,” Reilly said, adding that when “Space Invaders” first came out, “it was like a spaceship landed in the bowling alley.”


“People can’t fully appreciate what an insane change that was,” he continued. “Because there were no computers; there were no cellphones. I didn’t even have a VCR at that point. There was no way to manipulate something on a screen. And all of a sudden, this thing lands in the arcade.”


McBrayer grew up with an Atari 2600 system, “but we kept that over at grandma’s house so we wouldn’t get too attached to it.”


He remembers taking his report card to Super Scooper, the ice-cream parlor/arcade near his Georgia home, where good grades were rewarded with video-game tokens. He preferred the “cutesy, non-threatening games” and the escape they provided.


“So many kids won’t even recognize half of these (game references in the film),” McBray said, “but I hope they have fun just realizing that there’s this whole world of video-game characters and environments that make up the history of the video games they’re playing now.”


Silverman, whose early arcade favorites included “Asteroids,” ”Missile Command” and “Space Invaders,” notes that video games have been around for 30 years, “but in technology years, that’s like 200 years old.”


The actors said they don’t play video games much these days, but the film’s director does, whipping out his iPhone during a recent interview to prove the point.


“I feel really, really fortunate to have been someone who got to grow up with them,” said Moore, whose previous directing credits include “The Simpsons” and “Futurama.” So it’s an honor and a privilege to be the guy that gets to pull from one end of the timeline to this end of the timeline … to put them in a movie and put them in a story that pays tribute to all of them.”


___


Follow AP Entertainment Writer Sandy Cohen on Twitter at www.twitter.com/APSandy .


___


Online:


http://disney.go.com/wreck-it-ralph/


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Kardashian boosts “X Factor” ratings, but wins few fans

























LOS ANGELES (Reuters) – Khloe Kardashian‘s first outing as the new co-host of “The X Factor” helped boost the show’s audience by 30 percent, yet the reality star got mixed reviews for a nipple-baring debut that made headlines – but many TV critics found awkward.


Kardashian, 28, best known for starring with socialite sisters Kim and Kourtney in “Keeping Up with the Kardashians,” shocked some viewers by wearing a sheer purple blouse without a bra on Wednesday’s first live episode of the TV singing contest.





















“I think the air conditioning is on high tonight. It’s very distracting,” judge and producer Simon Cowell quipped on the show, apparently referring to the glimpses of nipple.


But Kardashian was less impressive in her hosting duties.


The Washington Post said Kardashian “came across like the novice she is, shouting her lines despite the mic clutched in her hand and making awkward small talk with contestants and judge and executive producer Simon Cowell.”


Nevertheless, Kardashian brought more eyeballs to the show. Some 7.4 million viewers watched “The X Factor” on Fox television, according to early ratings data, up some 30 percent from last week’s 5.7 million and a 13 percent increase in the 18-49 age group most coveted by advertisers.


Kardashian was Cowell’s personal pick for the job as part of his efforts to revamp the singing contest after a disappointing first season. But the reality star’s lack of experience had already raised eyebrows, and “X Factor” has often drawn a smaller audience than last year.


Cowell told reporters earlier this week that Kardashian “wants to prove (to) anyone who doubted her that she’s capable of doing the job … she really has got a fun personality.”


The New York Daily News called Kardashian a “surprisingly good host,” while The Hollywood Reporter said “both Kardashian and (co-host Mario) Lopez seemed at ease in their new roles.”


The Hollywood Gossip website, however, said Kardashian was “every bit as boring and awkward as we imagined she would be.”


“The X Factor” is broadcast on Fox, a unit of News Corp.


(Reporting by Jill Serjeant; Editing by Jan Paschal)


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Hospitals sue government over private Medicare audits

























WASHINGTON (Reuters) – A coalition of hospitals sued the U.S. government on Thursday, claiming that private auditors hired to crack down on improper Medicare payments are denying hospitals hundreds of millions of dollars in legal payments for necessary care.


The lawsuit alleges auditors known as Recovery Audit Contractors (RAC) forced hospitals to repay Medicare for the cost of in-patient services by determining months and sometimes years after the fact that beneficiaries should have been treated as out-patients instead of being admitted.





















The plaintiffs — the American Hospital Association and four institutions from Missouri, Michigan and Pennsylvania — say auditors in many cases do not deny the care is necessary but the government still refuses to reimburse hospitals under the Medicare program for out-patient service.


Filed in U.S. District Court in Washington, the suit charges the U.S. Centers for Medicare and Medicaid Services with violating the law that governs the popular Medicare program for the elderly and disabled as well as other statutes.


A spokesman for U.S. Centers for Medicare and Medicaid Services said it is administration policy not to comment on pending litigation.


The RAC audit program, established under the Bush administration to curtail improper Medicare payments, has collected $ 1.86 billion in overpayments from October 2009 to March 2012, according to the court filing.


(Reporting by David Morgan; editing by Andrew Hay)


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Asian factories perk up, U.S. shows improvement

























NEW YORK/BEIJING (Reuters) – Asia‘s large economies started to pick up steam last month after a year of slower growth, surveys showed on Thursday, while U.S. manufacturing showed modest improvement.


The jury was out on whether the data signaled sustained improvement in the fragile global economy, although analysts said strength in the United States and China, the world’s two biggest economies, was essential to overall economic well-being.





















That is particularly so at a time when a debt crisis in the 17-country euro zone has plunged several countries in the region into recession. Reports on major euro zone countries are due on Friday and expected to show continued economic contraction.


But the picture appeared to be brightening elsewhere.


The Institute for Supply Management said the pace of U.S. manufacturing growth picked up slightly in October, with its index rising to a five-month peak of 51.7. But hiring in the sector slowed.


A separate report from data firm Markit showed the slowest pace of growth in 37 months, the result of reduced demand for U.S. goods overseas.


“It looks like manufacturing has stopped deteriorating. It’s weak growth but it’s growth,” said Christopher Low, chief economist at FTN Financial.


More encouraging, payrolls processor ADP said U.S. companies added 158,000 jobs in October, far more than the 135,000 forecast in a Reuters poll. [ID:nEAPA10EH0] Another report showed consumer confidence at a four-year high. [ID:nL1E8LV9LZ]


The data was welcomed by the U.S. stock market, which rose on the second day since it reopened following a massive storm that battered the U.S. Northeast earlier this week.


The data “are encouraging,” said David Sloan, economist at 4Cast Ltd in New York. “There shouldn’t be any distortions from the hurricane yet. There is some evidence of labor market improvement. It is not totally convincing yet but overall the message is positive.”


A more comprehensive government jobs report due Friday, however, was expected to be a bigger test of U.S. labor market health and will be the last economic data before the November 6 presidential election. Economists surveyed by Reuters expected the economy added 125,000 jobs in October.


In Brazil, manufacturing expanded for the first time since March, according to the HSBC Purchasing Managers’ Index, boosting hopes for economic improvement in the fourth quarter.


ASIAN REBOUND


Data from Asia was encouraging as well. China’s economy, the motor of global growth in recent years, appears to have gathered pace in October after slowing to its weakest pace in more than three years in the third quarter.


Chinese manufacturing showed renewed vim, with the official manufacturing purchasing managers’ index rising to 50.2 from 49.8 in September. Economists said that could help lift fourth-quarter growth above the 7.4 percent rate recorded in the July-to-September period.


Also on Thursday, the final reading of the Chinese HSBC PMI rose to 49.5 in October from 47.9 in September. The reading was the highest since February.


The official PMI generally paints a rosier picture of the factory sector than the HSBC PMI as the official survey focuses on big, state-owned companies, while the HSBC survey targets smaller, private companies that have limited access to bank loans.


“Overall sentiment is brightening and Chinese orders are suggesting a moderate recovery,” said Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo.


Beijing has been following a program of pro-growth fine tuning of economic policies for a year and analysts broadly expect that to remain in place when a new leadership line-up at the top of the ruling Communist Party is unveiled this month.


“The return of the PMI above 50 suggests economic momentum has indeed picked up. It indicates the effect of policy easing may have been stronger than the consensus expected,” Zhiwei Zhang of Nomura said in a comment emailed to Reuters.


“We believe macro data will continue to surprise on the upside in coming months, as the government continues to ease policy through the period of leadership transition.”


South Korea, another of Asia’s manufacturing powerhouses, posted the first annual rise in exports in four months in October, adding to hopes for a turnaround after a year-long slump in global trade.


HEADING FOR THE CLIFF?


The biggest risk to more robust global growth, however, may be just around the corner. After the U.S. election, Congress will have less than two months to decide whether to let some $ 600 billion of automatic tax increases and spending cuts to take effect.


While fiscal tightening of that magnitude would help reduce a U.S. budget deficit of more than $ 1 trillion – something both Democrats and Republican say is essential – it would also be a big hit on U.S. output, which would threaten global growth.


That has raised concern among some central bankers and finance ministers due to attend a Group of 20 meeting in Mexico on Sunday and Monday.


It was also keeping market participants uneasy.


“The big thing weighing on business sentiment is the fiscal cliff. Things like investing and hiring are delayed but not cancelled outright,” said FTN Financial’s Low said.


“The divergence between business and consumer sentiment is unusual. Consumers seem oblivious about possible tax increases.”


(Additional reporting by Yati Himatsingka in Bangalore, Jonathan Standing in Taipei and Sven Egenter in London; Editing by Clive McKeef and Andre Grenon)


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Canada will push to keep bank capital rules on schedule

























OTTAWA (Reuters) – Canada will urge all countries to stick to the agreed schedule for implementing tougher bank capital rules at a November 4-5 meeting of finance ministers and central bankers from the Group of 20 nations, a senior finance ministry official said on Thursday.


The so-called Basel III rules are the world’s regulatory response to the financial crisis, forcing banks to triple the amount of basic capital they hold in a bid to avoid future taxpayer bailouts.





















They were to be phased in from January 2013 but areas such as the United States and the European Union are not yet ready and U.S. and British supervisors have criticized them as too complex to work.


The Canadian official, who briefed reports ahead of the meeting on condition that he not be named, said it was imperative that the rules, the timelines and the principles behind them be respected and said Finance Minister Jim Flaherty would make that view known to his G20 colleagues.


Canada sees the European debt crisis as the biggest near-term risk to the global economy, and it also expects the U.S. debt crisis to be top of mind at the talks, the official said.


But the meeting takes place just before the U.S. presidential election and U.S. Treasury Secretary Timothy Geithner will be absent, so it remains unclear how much the G20 can pressure Washington on that front.


Some other countries have also scaled back their delegations, raising doubts about how meaningful the meeting will be.


The official dismissed that argument, saying high-level officials substituting for their ministers allowed for extremely important issues to be addressed anyway.


He said holding each country around the table accountable to its past commitments helped keep the momentum going toward resolving global economic problems.


(Reporting by Louise Egan; Writing by David Ljunggren; Editing by M.D. Golan)


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RIM starts carrier testing on BlackBerry 10 devices

























TORONTO (Reuters) – Research In Motion has started carrier testing of its new line of BlackBerry 10 devices ahead of the launch of the devices in the first quarter of 2013, the company said on Wednesday.


“In the last week, BlackBerry 10 achieved lab entry with more than 50 carriers, a key step in our preparedness for the launch of BlackBerry 10 in the first quarter of 2013,” said RIM’s Chief Executive Thorsten Heins, in a brief statement.





















Waterloo, Ontario-based RIM is seeking to turn around its faded fortunes with the launch of the BB10 devices, as its aging line-up of BlackBerry devices loses ground to Apple’s iPhone and Samsung’s line of Galaxy products, especially in the key North American and European markets.


(Reporting by Euan Rocha; Editing by Janet Guttsman)


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Nic Cage starrer, Christian best-seller “Left Behind,” tops Arclight’s AFM lineup

























LOS ANGELES (TheWrap.com) – On the eve of the AFM, Arclight Films has taken on international sales duties for the film adaptation of the Christian-themed best-seller, “Left Behind,” a representative for the film told TheWrap on Tuesday.


The film, which will star Nicolas Cage and will be directed by Vic Armstrong, is looking for an early 2013 start date.





















The book about the end of the world hit the top of the New York Times best-seller list, with more than 65 million novels sold. It went on to be translated into 30 languages.


Arclight is also circling another project “Reclaim,” which is eyeing Isla Fisher (“The Great Gatsby”) for a starring role. Ian Sutherland, Alan White, and Brian Etting are producing, and Alan White is directing the film.


The filmmakers are also interested in Joel Edgerton for the picture, which follows a couple who go to Australia to adopt a little girl from Afghanistan. They wind up getting taken advantage of by criminals and soon find themselves in terrible danger.


Other projects in Arclight‘s AFM lineup includes “Heart of Darkness,” by Roger Donaldson; “Outcast,” which stars Hayden Christensen; “Predestination” with Ethan Hawke for the Spierig Brothers; “Mental,” starring Liev Schreiber; and “Berlin Job” from director Frank Harper. The company’s genre arm, Easternlight Films, is handling such titles as “Seven Assassins,” and “Dangerous Liaisons” with Zhang Ziyi.


“We are extremely excited about this year’s AFM and the commercial appeal of our slate,” Clay Epstein, VP sales & acquisitions for Arclight Films, said. “We are presenting the buyers with films that are not only perfect for the marketplace but well made projects we can all be very proud of.”


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Mass. firm tied to closed pharmacy issues recall

























BOSTON (AP) — A company with the same founders as the specialty pharmacy linked to deadly meningitis outbreak says it’s recalling all its products.


In a statement Wednesday, Ameridose said the voluntary recall comes after FDA officials told the company it must improve its sterility testing. The Westborough company says it has no reports of problems with its products, or any impurities, but issued the recall “out of an abundance of caution.”





















The company did not say how many products it is recalling.


Ameridose agreed to shut down for inspection earlier this month after tainted steroids from the New England Compounding Center were linked to an outbreak that has killed 28.


Ameridose and NECC were both founded by brothers-in-law Barry Cadden and Greg Conigliaro. Ameridose says it is a separate entity with distinct management.


Health News Headlines – Yahoo! News



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Panasonic Feels Pain of Chinese Backlash

























Those islands in the East China Sea at the center of the dispute between Japan and China are uninhabited, but we’re told they’re still worth fighting over because they might have valuable oil and gas nearby. Let’s hope so. That might at least provide some consolation to Japanese employees, executives, and shareholders of companies such as Panasonic (6752:JP), which have suffered badly as Chinese consumers shun Japanese goods in order to show their displeasure over the islands.


China problems are a major factor in what is shaping up to be a particularly lousy year for Panasonic. Japan’s second- biggest TV maker said on Wednesday that it expects to lose as much as ¥765 billion ($ 9.6 billion) in the year ending in March 2013. That loss, the second biggest in Panasonic’s history, is 30 times larger than analyst estimates had foreseen. Back in May, Panasonic was expecting profits for the year, projecting earnings of ¥50 billion.





















That was before the latest dispute between China and Japan erupted, leading to an informal boycott of Japanese goods by many consumers in the world’s second-largest economy. Japan’s automakers, for instance, have experienced sharp declines in China sales. In September, Toyota (TM)’s China sales plummeted 49 percent, Honda’s (7267:JP) dropped 41 percent, and Nissan’s (7201:JP) fell 35 percent.


Now it’s Panasonic’s turn. With the Japanese economy stuck in a deflationary downturn, Panasonic can hardly afford a slowdown in China. The country accounted for 14 percent of Panasonic sales in the first quarter. That proportion is sure to shrink.


Even before the Wednesday announcement, it was clear the political tensions were hurting Panasonic. During anti-Japan protests last month, fire damaged a Panasonic factory in the northeastern Chinese city of Qingdao. Protests against Japan disrupted operations at two addditional Panasonic plants in China.


China and Japan aren’t close to resolving their dispute over the East China Sea Islands (called Diaoyu in China and Senkaku in Japan). Even if the situation doesn’t deteriorate further, Panasonic and other Japanese companies are likely to continue feeling the heat. Panasonic’s chief financial officer, Hideaki Kawai, estimates that the Japan backlash may lead to a ¥100 billion decline in sales and a ¥30 billion decline in operating profit for the current fiscal year.


Panasonic is the first of the big Japanese electronics companies to report some results of the Japan backlash in China. There is probably more bad news to come. Sony (SNE) and Sharp (6753:JP) are both scheduled to report earnings on Thursday. Those Japanese companies are unlikely to have fared any better than Panasonic with angry Chinese consumers.


Businessweek.com — Top News



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