Aides: Chavez in tough fight, may miss swearing-in

CARACAS, Venezuela (AP) — Somber confidants of President Hugo Chavez say he is going through a difficult recovery after cancer surgery in Cuba, and one close ally is warning Venezuelans that their leader may not make it back for his swearing-in next month.

Information Minister Ernesto Villegas said Wednesday night that Chavez was in “stable condition” and was with close relatives in Havana. Reading a statement, he said the government invites people to “accompany President Chavez in this new test with their prayers.”

Villegas expressed hope about the president returning home for his Jan. 10 swearing-in for a new six-year term, but said in a written message on a government website that if Chavez doesn’t make it, “our people should be prepared to understand it.”

Villegas said it would be irresponsible to hide news about the “delicateness of the current moment and the days to come.” He asked Venezuelans to see Chavez’s condition as “when we have a sick father, in a delicate situation after four surgeries in a year and a half.”

Moving to prepare the public for the possibility of more bad news, Vice President Nicolas Maduro looked grim when he acknowledged that Chavez faced a “complex and hard” process after his latest surgery.

At the same time, officials sought to show a united front amid the growing worries about Chavez’s health and Venezuela’s future. Key leaders of Chavez’s party and military officers appeared together on television as Maduro gave updates on Chavez’s condition.

“We’re more united than ever,” said Maduro, who was flanked by National Assembly President Diosdado Cabello and Oil Minister Rafael Ramirez, both key members of Chavez’s inner circle. “We’re united in loyalty to Chavez.”

Analysts say Maduro could eventually face challenges in trying to hold together the president’s diverse “Chavismo” movement, which includes groups from radical leftists to moderates, as well as military factions.

Tapped by the 58-year-old president over the weekend as his chosen political heir, Maduro is considered to be a member of radical left wing of Chavez’s movement that is closely aligned with Cuba’s communist government.

Cabello, a former military officer who also wields power within Chavez’s movement, shared the spotlight with Maduro by speaking at a Mass for Chavez’s health at a military base.

Just returned from being with Chavez for the operation, Cabello called the president “invincible” but said “that man who is in Havana … is fighting a battle for his life.”

After Chavez’s six-hour operation Tuesday, Venezuelan television broadcast religious services where people prayed for Chavez, interspersed with campaign rallies for upcoming gubernatorial elections.

On the streets of Caracas, people on both sides of the country’s deep political divide voiced concerns about Chavez’s condition and what might happen if he died.

At campaign rallies ahead of Sunday’s gubernatorial elections, Chavez’s candidates urged Venezuelans to vote for pro-government candidates while they also called for the president to get well.

“Onward, Commander!” gubernatorial candidate Elias Jaua shouted to a crowd of supporters at a rally Wednesday. Many observers said it was likely Chavez’s candidates could get a boost from their supporters’ outpouring of sympathy for Chavez.

Opposition leader Henrique Capriles, who lost to Chavez in the October presidential election and is running against Jaua, complained Wednesday that Chavez’s allies are taking advantage of the president’s health problems to try to rally support. He took issue with Jaua’s statement to supporters that “we have to vote so that the president recovers.”

Maduro looked sad as he spoke on television, his voice hoarse and cracked at times after meeting in the pre-dawn hours with Cabello and Ramirez. The pair returned to Venezuela about 3 a.m. after accompanying Chavez to Cuba for his surgery.

“It was a complex, difficult, delicate operation,” Maduro said. “The post-operative process is also going to be a complex and hard process.”

Without giving details, Maduro reiterated Chavez’s recent remarks that the surgery presented risks and that people should be prepared for any “difficult scenarios.”

The constitution says presidents should be sworn in before the National Assembly, and if that’s not possible then before the Supreme Court.

Former Supreme Court magistrate Roman Duque Corredor said a president cannot delegate the swearing-in to anyone else and cannot take the oath of office outside Venezuela. A president could still be sworn in even if temporarily incapacitated, but would need to be conscious and in Venezuela, Duque told The Associated Press.

If a president-elect is declared incapacitated by lawmakers and is unable to be sworn in, the National Assembly president would temporarily take charge of the government and a new presidential vote must be held within 30 days, Duque said.

Chavez said Saturday that if an election had to be held, Maduro should be elected president.

The dramatic events of this week, with Chavez suddenly taking a turn for the worse, had some Venezuelans wondering whether they were being told the truth because just a few months ago the president was running for his fourth presidential term and had said he was free of cancer.

Lawyer Maria Alicia Altuve, who was out in bustling crowds in a shopping district of downtown Caracas, said it seemed odd how Maduro wept at a political rally while talking about Chavez.

“He cries on television to set up a drama, so that people go vote for poor Chavez,” Altuve said. “So we don’t know if this illness is for that, or if it’s that this man is truly sick.”

Some Chavez supporters said they found it hard to think about losing the president and worried about the future. His admirers held prayer vigils in Caracas and other cities this week, holding pictures and singing hymns.

Chavez has undergone four cancer-related surgeries since June 2011. He has also undergone months of chemotherapy and radiation treatments. Throughout his treatments, Chavez has kept secret some details of his illness, including the exact location and type of the tumors.

Ecuadorean President Rafael Correa wished his close ally the best, while also acknowledging the possibility that cancer might end his presidency. “Chavez is very important for Latin America, but if he can’t continue at the head of Venezuela, the processes of change have to continue,” Correa said at a news conference in Quito.

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Associated Press writer Christopher Toothaker contributed to this report.

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Margo Martindale joins FX’s “The Americans”

NEW YORK (TheWrap.com) – Margo Martindale, who won an Emmy for her role on FX’s “Justified,” is returning to the network on the new spy series “The Americans.”

The show, which stars Matthew Rhys and Keri Russell as an undercover KGB couple in Reagan-era America, premieres January 30. Martindale has signed on to appear in at least eight episodes as “Claudia,” a KGB illegal who delivers assignments to the couple.

The casting reunites Martindale with “Justified” creator Graham Yost, an executive producer of “The Americans.” Martindale won the Emmy Award for Outstanding Supporting Actress in a Drama Series for her performance as Mags Bennett on “Justified.”

Since her exit from the show, Yost has talked about how much he misses working with the actress.

“What I do regret is just not having Margo on the show, in that she’s such a tremendous actress and such a great person,” he told TheWrap. “That was the hard part.”

Since leaving “Justified,” Martindale has appeared on CBS’s now-canceled “A Gifted Man” and has signed on for Showtime’s “Masters of Sex.”

“The Americans” was created by former CIA agent Joe Weisberg, who also executive produces. Besides Yost, it is also executive produced by Joel Fields and Amblin Television heads Justin Falvey and Darryl Frank. The series is produced by Fox Television Studios and FX Productions.

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Dozens sue pharmacy, but compensation uncertain

NASHVILLE, Tenn. (AP) — Dennis O’Brien rubs his head as he details ailments triggered by the fungal meningitis he developed after a series of steroid shots in his neck: nausea, vomiting, dizziness, drowsiness, blurred vision, exhaustion and trouble with his speech and attention.

He estimates the disease has cost him and his wife thousands of dollars in out-of-pocket expenses and her lost wages, including time spent on 6-hour round trip weekly visits to the hospital. They’ve filed a lawsuit seeking $ 4 million in damages from the Massachusetts pharmacy that supplied the steroid injections, but it could take years for them to get any money back and they may never get enough to cover their expenses. The same is true for dozens of others who have sued the New England Compounding Center.

“I don’t have a life anymore. My life is a meningitis life,” the 59-year-old former school teacher said, adding that he’s grateful he survived.

His is one of at least 50 federal lawsuits in nine states that have been filed against NECC, and more are being filed in state courts every day. More than 500 people have gotten sick after receiving injections prepared by the pharmacy.

The lawsuits allege that NECC negligently produced a defective and dangerous product and seek millions to repay families for the death of spouses, physically painful recoveries, lost wages and mental and emotional suffering. Thirty-seven people have died in the outbreak.

“The truth is the chance of recovering damages from NECC is extremely low,” said John Day, a Nashville attorney who represents several patients who have been sickened by fungal meningitis.

To streamline the process, attorneys on both sides are asking to have a single judge preside over the pretrial and discovery phases for all of the federal lawsuits.

This approach, called multidistrict litigation, would prevent inconsistent pretrial rulings and conserve resources of all parties. But unlike a class-action case, those lawsuits would eventually be returned to judges in their original district for trial, according to Brian Fitzpatrick, a law professor at Vanderbilt University Law School in Nashville.

Even with this approach, Fitzpatrick noted that federal litigation is very slow, and gathering all the evidence, records and depositions during the discovery phase could take months or years.

“Most of the time what happens is once they are consolidated for pretrial proceedings, there is a settlement, a global settlement between all the lawyers and the defendants before anything is shipped back for trial,” he said.

A lawyer representing NECC, Frederick H. Fern, described the consolidation process as an important step.

“A Boston venue is probably the best scenario,” Fern said in an email. “That’s where the parties, witnesses and documents are located, and where the acts subject to these complaints occurred.”

Complicating efforts to recover damages, attorneys for the patients said, NECC is a small private company that has now recalled all its products and laid off its workers. The company’s pharmacy licenses have been surrendered, and it’s unclear whether NECC had adequate liability insurance.

Fern said NECC has insurance, but they were still determining what the policy covers.

But Day says, “It’s clear to me that at the end of the day, NECC is not going to have sufficient assets to compensate any of these people, not even 1 percent.”

As a result, many attorneys are seeking compensation from other parties. Among the additional defendants named in lawsuits are NECC pharmacist and co-founder Barry Cadden; co-founder Greg Conigliaro; sister company Ameridose and its marketing and support arm, Medical Sales Management.

Founded in 2006 by Cadden and Conigliaro, Ameridose would eventually report annual revenue of $ 100 million. An NECC spokesman didn’t respond to a request for the pharmacy’s revenue.

While Federal Drug Administration regulators have also found contamination issues at Westborough, Mass.-based Ameridose, the FDA has said it has not connected Ameridose drugs to infection or illness.

Under tort law, a lawsuit has to prove a defendant has a potential liability, which in this case could be anyone involved in the medical procedure. However, any such suit could take years and ultimately may not be successful.

“I would not be surprised if doctors, hospitals, people that actually injected the drugs, the people that bought the drugs from the compounding company, many of those people will also be sued,” said Fitzpatrick.

Plaintiffs’ attorneys said they’re considering that option but want more information on the relationships between the compounding pharmacy and the hundreds of hospitals and clinics that received its products.

Day, the attorney in Tennessee, said the clinics and doctors that purchase their drugs from compounding pharmacies or manufacturers could be held liable for negligence because they are in a better position to determine the safety of the medicine than the patients.

“Did they use due care in determining from whom to buy these drugs?” Day said.

Terry Dawes, a Michigan attorney who has filed at least 10 federal lawsuits in the case, said in traditional product liability cases, a pharmaceutical distributor could be liable.

“We are looking at any conceivable sources of recovery for our clients including pharmaceutical supply places that may have dealt with this company in the past,” he said.

Ten years ago, seven fungal meningitis illnesses and deaths were linked to injectable steroid from a South Carolina compounding pharmacy. That resulted in fewer than a dozen lawsuits, a scale much smaller than the litigations mounting up against NECC.

Two companies that insured the South Carolina pharmacy and its operators tried unsuccessfully to deny payouts. An appellate court ruled against their argument that the pharmacy willfully violated state regulations by making multiple vials of the drug without specific prescriptions, but the opinion was unpublished and doesn’t set a precedent for the current litigation.

The lawsuits represent a way for patients and their families recover expenses, but also to hold the pharmacy and others accountable for the incalculable emotional and physical toll of the disease.

A binder of snapshots shows what life is like in the O’Briens’ rural Fentress County, Tenn., home: Dennis hooked up to an IV, Dennis in an antibiotics stupor, bruises on his body from injections and blood tests. He’s had three spinal taps. His 11-day stay in the hospital cost over $ 100,000, which was covered by health insurance.

His wife said she sometimes quietly checks at night to see whether her husband of 35 years is still breathing.

“In my mind, I thought we were going to fight this and get over it. But we are not ever going to get over it,” said Kaye O’Brien.

Marjorie Norwood, a 59-year-old grandmother of three who lives in Ethridge, Tenn., has spent just shy of two months total in the hospital in Nashville battling fungal meningitis after receiving a steroid injection in her back. She was allowed to come home for almost a week around Thanksgiving, but was readmitted after her symptoms worsened.

Family members are still dealing with much uncertainty about her recovery, but they have not filed a lawsuit, said their attorney Mark Chalos. He said Norwood will likely be sent to a rehabilitation facility after her second stay in the hospital rather than return home again.

Marjorie Norwood’s husband, an autoworker, has taken time off work to care for her and they depend on his income and insurance.

“It doesn’t just change her life, it changes everyone else’s life around her because we care about her and want her to be happy and well and have everything that she needs,” said her daughter, Melanie Norwood.

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Europe deepens union with ECB as chief bank watchdog

BRUSSELS (Reuters) – Europe clinched a deal on Thursday to give the European Central Bank new powers to supervise euro zone banks from 2014, embarking on the first step in a new phase of closer integration to help underpin the euro.

After more than 14 hours of talks and following months of tortuous negotiations, finance ministers from the European Union‘s 27 countries agreed to hand the ECB the authority to directly police at least 150 of the euro zone’s biggest banks and intervene in smaller banks at the first sign of trouble.

“This is a big first step for banking union,” EU Commissioner Michel Barnier told a news conference. “The ECB will play the pivotal role, there’s no ambiguity about that.”

The euro rose to a session high in Tokyo of 1.3080 against the U.S. dollar on news of the deal.

After three years of piecemeal crisis-fighting measures, agreeing on a banking union lays a cornerstone of wider economic union and marks the first concerted attempt to integrate the bloc’s response to problem banks.

The new system of supervision should be up and running by March 1, 2014, following talks with the European Parliament, although ministers agreed that could be delayed if the ECB needed longer to prepare itself.

The plan sets in motion one of the biggest overhauls of any European banking system since the financial crisis began in mid-2007 with the near collapse of German lender IKB.

The onus is now on EU leaders, who meet in Brussels on Thursday and Friday, to give it their full political backing.

In an about-turn, German Finance Minister Wolfgang Schaeuble dropped earlier objections that had led him to clash openly with his French counterpart, Pierre Moscovici, last week over the ECB’s role in banking supervision.

With time running out to meet a year-end deadline, both sides managed to settle their differences and Germany won concessions to temper the authority of the ECB’s Governing Council over the new supervisor.

Agreement on bank surveillance is a crucial first step towards a broader banking union, or common euro zone approach to dealing with failing banks that in recent years dragged down countries such as Ireland and Spain.

The next pillar of a banking union would be the creation of a central system to close troubled banks.

The decision also sends a strong signal to investors that the euro zone’s 17 members, from powerful Germany to stricken Greece, can pull together to tackle the bloc’s problems.

‘STEP BY STEP’

Other difficult issues remain.

At a summit in June, EU leaders pledged that once a common bank supervisor was in place, the bloc’s rescue mechanism would have the power to directly recapitalize struggling banks.

Countries like France, Italy and Spain are keen for those powers to be in place as soon as possible. But Germany, worried it could be forced to foot the bill for struggling banks across the bloc, is not in a rush.

“We have reached the main points to establish a European banking supervisor that should take on its work in 2014,” Schaeuble told reporters. “We stand by what we agreed, to bring Europe forward step by step.”

In the longer term, there is also disagreement over how the burden of winding down failed banks should be shared.

The deal foresees banks with assets of 30 billion euros, or larger than one-fifth of their country’s economic output, being supervised by the ECB rather than national supervisors.

France’s Moscovici said that would put more than 150 banks under the ECB’s watch.

Critically, it also gives the ECB authority to widen its authority to smaller banks if problems arise.

That will satisfy Germany, which wanted to maintain primary oversight of its savings and cooperative banks, nearly all of which will not fall under direct surveillance from Frankfurt unless they run into problems.

CONCESSIONS

Talks ran into the early hours of Thursday because ministers needed to resolve a potential conflict of interest between the ECB’s roles as supervisor and as guardian of monetary policy.

Such a conflict could arise if, for example, the ECB were to keep interest rates low to prop up banks.

They agreed to introduce a mediation panel to resolve disputes with national supervisors, a move Germany was satisfied would act as a counterbalance to the authority of the European Central Bank’s Governing Council.

A steering committee will guide the work of the supervisory body, which in turn is answerable to the ECB’s Governing Council. That leaves the final say with the ECB.

Reaching a deal also required granting concessions to Britain, a member of the European Union that does not use the euro, which worried that the ECB would undermine its autonomy in policing the City of London, Europe’s top financial centre.

London had asked for changes to the system of voting when regulators from across the European Union meet to flesh out EU law, such as defining the capital reserves that banks can use as buffers.

Those regulators meet under the umbrella of the European Banking Authority, but London had been concerned that countries in the euro zone would force through rules in their favor.

EU ministers agreed that a double vote would now take place – one for those in the banking union and another for non-euro countries outside – before decisions on EU regulation are taken.

(Additional reporting by Jan Strupczewski, Luke Baker, Noah Barkin and Leigh Thomas; Editing by Peter Cooney)

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‘Evita’ to close in January when Big 3 leave

NEW YORK (AP) — The Broadway revival of “Evita” — faced with trying to replace Ricky Martin, Elena Roger and Michael Cerveris — will instead close when the Big Three leave early next year.

Producers of the Tony Award-nominated revival of Tim Rice‘s and Andrew Lloyd Webber‘s landmark musical said Tuesday night they have decided against plans for an open-ended run after Martin, Roger and Cerveris leave after the Jan. 26 performance.

“Our extensive search for a new cast presented the significant challenges of not only replacing a high-caliber trio of stars but also synchronizing the schedules of potential replacements with that of the production,” producer Hal Luftig said in a statement. “Despite going down the road with a variety of artists, the planets have simply not aligned for us to engage the right talent at the right time.”

When it closes, the musical will have played 26 previews and 337 performances, far less than the original’s more than 1,580 shows played between 1979 and 1983.

A national tour will launch in September 2013 at the Providence Performing Arts Center in Providence, R.I., and a cast album has been released, including the songs “Don’t Cry for Me Argentina” and “High Flying Adored.” The cast for the tour has not been announced.

The revival opened March 12 at the Marquis Theatre, directed by Michael Grandage and choreographed by Rob Ashford. It has broken the theater’s box office record seven times, though has seen the box office slump at times.

Last week, it pulled in $ 920,994, or a little more than half its $ 1,666,936 potential. The average ticket price was $ 111.73 and the top premium went for $ 275.

The musical tells the story of Argentina’s Eva Peron, who rose from the slums to the presidential mansion. Roger plays Eva, Cerveris her husband and Martin is Che.

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Online: http://evitaonbroadway.com

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Cardiome to pay $20 million, settle debt deal with Merck

(Reuters) – Cardiome Pharma Corp said it will pay former partner Merck & Co $ 20 million by March 31 to settle debt obligations related to a licensing deal for a heart drug.

Shares of Cardiome jumped as much as 51 percent to 37 Canadian cents on the Toronto Stock Exchange on Tuesday. Its U.S.-listed shares also rose 52 percent on the Nasdaq.

The company said in September that Merck returned the global marketing and development rights for intravenous and oral versions of their heart drug, six months after dropping the development of the oral version.

The drug vernakalant is an experimental treatment for chronic atrial fibrillation, a heart rhythm disorder that can lead to stroke and heart failure.

Cardiome, which had a cash balance of $ 53.6 million at the end of September, owed Merck $ 50 million. Merck had granted Cardiome an interest-bearing credit facility of up to $ 100 million.

The companies signed the collaboration and licensing agreement for vernakalant in April 2009.

“Complete resolution of our $ 50 million debt obligation to Merck removes a significant financial and operational overhang for Cardiome,” said William Hunter, interim CEO of Cardiome, which develops drugs for diseases of the heart and circulatory system.

The settlement will terminate the credit facility and will release and discharge the collateral security taken in respect of the advances under the line of credit, Cardiome said in a statement.

Brokerage firm Canaccord Genuity raised its price target on the stock to 40 cents from 35 cents.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)

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Indonesians Still Love Their BlackBerrys

For Sanuri, a customer service technician at a Jakarta electronics chain, buying a phone is a big decision. The 28-year-old father of one (who like many Indonesians has only one name) makes about $ 160 a month, minimum wage in the Indonesian capital. But like many Jakarta residents, he’s willing to spend more for an impressive-looking phone. Last year he decided to get rid of his old Nokia (NOK) in favor of a $ 440 BlackBerry Torch. To finance it, he had to get a loan from his employer.

The phone was worth the expense, says Sanuri, who relies on the free BlackBerry Messenger service to keep in touch with colleagues and schedule client visits. “Everyone knows what the others are doing,” he says. Even though Indonesian retailers are offering more alternatives to BlackBerry, Sanuri isn’t switching. “There are more benefits I can get from BlackBerry,” he says.

While smartphone users around the world are tossing their BlackBerrys and buying Google’s (GOOG) Android-powered phones and Apple’s (AAPL) iPhones, Indonesia remains a rare bright spot for Research In Motion (RIMM). The global market share for the Waterloo (Ont.)-based company’s smartphones fell to just 4.3 percent in the third quarter of this year, down from 9.5 percent in the same quarter of 2011, according to market research firm IDC. Yet in Indonesia, the BlackBerry operating system accounts for 37 percent of the market. RIM is still losing ground there, just not as quickly as elsewhere (in 2011, BlackBerrys accounted for 43 percent of the market). Android is now the top operating system, but BlackBerry remains ahead of the 2.5 percent share for No. 3 Apple iOS, thanks largely to the dominance of BBM. Indonesians also like RIM’s low-cost BlackBerry Internet Service plans such as BIS Social and BIS Lite that offer access to social networking sites like Twitter and Facebook (FB) for as little as $ 4.69 a month.

“Any retailer has to have BlackBerry,” says Ryota Inaba, chief executive officer of Rakuten Belanja Online, an e-commerce joint venture of Japanese online retailer Rakuten and Global Mediacom (BMTR), Indonesia’s biggest media company. Indonesia “is the market for RIM.” Inaba is a BlackBerry user himself, albeit a reluctant one. “I don’t like using BlackBerry, to be honest,” he says. But few of Inaba’s 40 staff members have high-end smartphones and a lot of them don’t even use e-mail, preferring instead to chat over BBM. “BlackBerry is the fastest way to communicate,” says Inaba, who sends about 20 instant messages a day via the BBM service.

Indonesia isn’t as coveted a market as China or India, but it does have the world’s fourth-largest population (some 242 million people), and its economy is expected to increase more than 6 percent this year. RIM clearly views it as a market worth protecting. Singapore-based spokesman Benjamin Chelliah says RIM is “currently investigating” launching a new money transfer system for its Indonesian BBM platform. RIM is also trying to foster Indonesia’s growing app developer community. In October, RIM opened a BlackBerry Innovation Center at the Bandung Institute of Technology to provide scholarships and other financial support to young engineers working on BlackBerry mobile apps; the same month, RIM CEO Thorsten Heins traveled to Jakarta to promote the brand.

In late November, RIM hosted a two-day conference for app developers in Bangkok, part of a campaign to build interest ahead of the January launch of its new operating system, BlackBerry 10. Regional managing director Urpo Karjalainen told attendees that RIM is “absolutely committed” to Asian markets, and that its “unique BlackBerry service has been the foundation of our success here.”

Fending off competition and slowing its market share slide won’t be easy. Google’s Android operating system has been making significant inroads into Southeast Asia. Samsung has been the main beneficiary, with its smartphone market share doubling from a year ago to 40 percent. RIM’s share across the region is now 14 percent, down from 18 percent in 2011. Nokia is taking aim at Indonesia too, announcing on Dec. 4 the launch of two Lumia smartphones using Microsoft’s (MSFT) Windows 8 operating system.

In response, RIM and retailers are offering cheaper BlackBerrys priced around $ 100. “There’s going to be a little bit of an OS war,” says Sudev Bangah, country manager in Jakarta for IDC. As that fight heats up, aggressive pricing and new BBM services will allow “RIM to reinvent itself in a market it cannot afford to lose.”

The new operating system will probably have limited impact on Indonesians in rural areas, who prefer cheaper phones. But for the upscale market, a pricey new BlackBerry might draw interest in Jakarta, where people “are willing to spend a little bit more,” says Bangah, who expects the new OS to boost BlackBerry shipments next year. In Indonesia, at least, RIM’s not finished yet.

The bottom line: Even in Indonesia, where they’re still popular, BlackBerrys are losing ground, going from 43 percent of the market last year to 37 percent.

With Harry Suhartono

Businessweek.com — Top News

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Australian prank call radio to donate profits to nurse’s family

CANBERRA (Reuters) – The Australian radio station behind a prank call to a British hospital will donate its advertising revenue until the end of the year to a fund for the family of the nurse who apparently took her own life after the stunt, the company said on Tuesday.

Southern Cross Austereo, parent company of Sydney radio station 2Day FM, said it would donate all advertising revenue, with a minimum contribution of A$ 500,000 ($ 525,000), to a memorial fund for the nurse, Jacintha Saldanha, who answered the telephone at the hospital treating Prince William’s pregnant wife, Kate.

The company has suspended the Sydney-based announcers, Mel Greig and Michael Christian, scrapped their “Hot 30″ programme and suspended advertising on the station in the wake of the Saldanha’s death. Southern Cross said it would resume advertising on its station from Thursday.

“It is a terrible tragedy and our thoughts continue to be with the family,” Southern Cross Chief Executive Officer Rhys Holleran said in a statement.

“We hope that by contributing to a memorial fund we can help to provide the Saldanha family with the support they need at this very difficult time.”

(Reporting by James Grubel; Editing by Robert Birsel)

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US designates Syria’s Jabhat al-Nusra front a ‘terrorist’ group at lightning speed

The US State Department designated the Jabhat al-Nusra militia fighting Bashar al-Assad’s government in Syria a foreign terrorist organization today.

The speed with which the US government moved to designate a fairly new group that has never attacked US interests and is engaged in fighting a regime that successive administrations have demonized is evidence of the strange bedfellows and overlapping agendas that make the Syrian civil war so explosive.

The State Department says Jabhat al-Nusra (or the “Nusra Front“) is essentially a wing of Al Qaeda in Iraq, the jihadi group that flourished in Anbar Province after the US invaded to topple the Baathist regime of secular dictator Saddam Hussein. During the Iraq war, Sunni Arab tribesmen living along the Euphrates in eastern Syria flocked to fight with the friends and relatives in the towns along the Euphrates river in Anbar Province.

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The terrain, both actual and human, is similar on both sides of that border, and the rat lines that kept foreign fighters and money flowing into Iraq from Syria work just as well in reverse. Now, the jihadis who fought and largely lost against the Shiite political ascendancy in Iraq are flocking to eastern Syria to repay a debt of gratitude in a battle that looks more likely to succeed every day.

The Nusra Front has gone from victory to victory in eastern Syria and has shown signs of both significant funding and greater military prowess than the average citizens’ militia, with veterans of fighting in Iraq, Afghanistan, and Libya among its numbers.

The US of course aided the fight in Libya to bring down Muammar Qaddafi. In Afghanistan and Iraq, the chance to fight and kill Americans was the major drawing card.

In Iraq, the US toppled a Baathist dictatorship dominated by Sunni Arabs, opening the door for the political dominance of Iraq’s Shiite Arab majority and the fury of the country’s Sunni jihadis. In Syria, a Baathist regime dominated by the tiny Alawite sect (a long-ago offshoot of Shiite Islam) risks being brought down by the Sunni majority. Iraq’s Shiite Prime Minister Nouri al-Maliki is in the odd position of now rooting for a Baathist regime to survive, frightened that a religiously inspired Sunni regime may replace Assad and potentially destabilize parts of his country from Haditha in Anbar’s far west to the northern city of Mosul.

For the US, the situation is more complicated still. The Obama administration appears eager for Assad to fall, but is also afraid of what might replace him, not least because of Syria’s chemical weapons stockpile. If the regime collapses, the aftermath is sure to be chaotic, much as it was in Libya, where arms stores were looted throughout the country. The presence of VX and sarin nerve gas, and the fear of Al Qaeda aligned militants getting their hands on it, has the US considering sending in troops to secure the weapons.

That’s the context in which today’s designation was made – part of an overall effort to shape the Syrian opposition to US liking, and hopefully have influence in the political outcome if and when Assad’s regime collapses. But while the US has been trying to find a government or leadership in waiting among Syrian exiles, Nusra has been going from strength to strength. Aaron Zelin, who tracks jihadi groups at the Washington Institute for Near East Policy, notes in a recent piece for Foreign Policy that 20 out of the 48 “martyrdom” notices posted on Al Qaeda forums for the Syria war were made by people claiming to be members of Nusra.

Zelin writes that it’s highly unusual for the US to designate as a terrorist group anyone who hasn’t attempted an attack on the US. In fact, the US only designated the Haqqani Network in Afghanistan, which had been involved in attacks on US troops there for over a decade, this September.

His guess as to why the US took such an unusual step?

The U.S. administration, in designating Jabhat al-Nusra, is likely to argue that the group is an outgrowth of the Islamic State of Iraq (ISI). While there is not much open-source evidence of this, classified material may offer proof — and there is certainly circumstantial evidence that Jabhat al-Nusra operates as a branch of the ISI.

Getting Syria’s rebels to disavow Jabhat al-Nusra may not be an easy task, however. As in Iraq, jihadists have been some of the most effective and audacious fighters against the Assad regime, garnering respect from other rebel groups in the process. Jabhat al-Nusra seems to have learned from the mistakes of al Qaeda in Iraq: It has not attacked civilians randomly, nor has it shown wanton disregard for human life by publicizing videos showing the beheading of its enemies. Even if its views are extreme, it is getting the benefit of the doubt from other insurgents due to its prowess on the battlefield.

Will it hurt the group’s support inside Syria? It’s hard to see how. The US hasn’t formally explained its logic yet, but it’s hard to see how that will matter either. The rebellion against Assad has raged for almost two years now and the country’s fighters are eager for victory, and revenge. The US has done little to militarily assist the rebellion, and fighters have been happy to take support where they can get it.

Most of the money or weapons flowing into the country for rebels has come from Gulf states like Saudi Arabia and Qatar and some of that support, of course, has ended up in the hands of Islamist militias like Nusra.

Usually the US doesn’t like support flowing to its designated terrorist organizations, and leans on countries like Saudi Arabia to cut off support. But in this case, a doctrinaire enforcement of its will could look like helping Assad (who has insisted everyone fighting his government is a terrorist since long before Nusra even existed).

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“The Colbert Report” mames new co-executive producer, head writer

LOS ANGELES (TheWrap.com) – “The Colbert Report” has promoted former supervising producer and head writer Barry Julien to co-executive producer, series host, writer and executive producer Stephen Colbert said Monday. In addition to Jullien’s promotion, Opus Moreschi, previously a writer for the series, has been moved up to head writer on the Comedy Central news-show spoof.

Julien joined “The Colbert Report” as a writer in 2007, moving to head writer in 2009 and picking up the supervising producer title last year. Moreschi came aboard the show in 2008.

“Barry Julien and Opus Moreschi are tireless, visionary producers and incredibly talented writers,” Colbert said of the promotions. “For instance they wrote this sentence.”

Both Julien and Moreschi have won Writers Guild Awards and Emmy Awards during their “Colbert Report” stints.

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