North Korean nuclear test draws anger, including from China

SEOUL (Reuters) - North Korea conducted its third nuclear test on Tuesday in defiance of U.N. resolutions, drawing condemnation from around the world, including from its only major ally, China, which summoned the North Korean ambassador to protest.

Pyongyang said the test was an act of self-defense against "U.S. hostility" and threatened stronger steps if necessary.

The test puts pressure on U.S. President Barack Obama on the day of his State of the Union speech and also puts China in a tight spot, since it comes in defiance of Beijing's admonishments to North Korea to avoid escalating tensions.

The U.N. Security Council held an emergency meeting at which its members, including China, "strongly condemned" the test and vowed to start work on appropriate measures in response, the president of the council said.

North Korean leader Kim Jong-un, the third of his line to rule the country, has presided over two long-range rocket launches and a nuclear test during his first year in power, pursuing policies that have propelled his impoverished and malnourished country closer to becoming a nuclear weapons power.

North Korea said the test had "greater explosive force" than those it conducted in 2006 and 2009. Its KCNA news agency said it had used a "miniaturized" and lighter nuclear device, indicating it had again used plutonium, which is suitable for use as a missile warhead.

China, which has shown signs of increasing exasperation with the recent bellicose tone of its reclusive neighbor, summoned the North Korean ambassador in Beijing and protested sternly, the Foreign Ministry said.

Foreign Minister Yang Jiechi said China was "strongly dissatisfied and resolutely opposed" to the test and urged North Korea to "stop any rhetoric or acts that could worsen situations and return to the right course of dialogue and consultation as soon as possible".

Analysts said the test was a major embarrassment to China, which is a permanent member of the Security Council and North Korea's sole major economic and diplomatic ally.

Obama called the test a "highly provocative act" that hurt regional stability.

"The danger posed by North Korea's threatening activities warrants further swift and credible action by the international community. The United States will also continue to take steps necessary to defend ourselves and our allies," Obama said.

U.S. Ambassador to the United Nations Susan Rice said Washington and its allies intended to "augment the sanctions regime" already in place due to Pyongyang's previous atomic tests. North Korea is already one of the most heavily sanctioned states in the world and has few external economic links that can be targeted.

Japanese Prime Minister Shinzo Abe said the test was a "grave threat" that could not be tolerated.

Russian Foreign Minister Sergei Lavrov urged North Korea to abandon its nuclear arms program and return to talks. NATO condemned the test as an "irresponsible act."

South Korea, still technically at war with North Korea after a 1950-53 civil war ended in a mere truce, also denounced the test. Obama spoke to South Korean President Lee Myung-bak on Tuesday and told him the United States "remains steadfast in its defense commitments" to Korea, the White House said.

MAXIMUM RESTRAINT

North Korea's Foreign Ministry said the test was "only the first response we took with maximum restraint".

"If the United States continues to come out with hostility and complicates the situation, we will be forced to take stronger, second and third responses in consecutive steps," it said in a statement carried by the official KCNA news agency.

North Korea - which gave the U.S. State Department advance warning of the test - often threatens the United States and its "puppet", South Korea, with destruction in colorful terms.

North Korea told the U.N. disarmament forum in Geneva that it would never bow to resolutions on its nuclear program and that prospects were "gloomy" for the denuclearization of the divided Korean peninsula because of a "hostile" U.S. policy.

Suzanne DiMaggio, an analyst at the Asia Society in New York, said North Korea had embarrassed China with the test. "China's inability to dissuade North Korea from carrying through with this third nuclear test reveals Beijing's limited influence over Pyongyang's actions in unusually stark terms," she said.

Mark Fitzpatrick of the International Institute for Strategic Studies think tank, said: "The test is hugely insulting to China, which now can be expected to follow through with threats to impose sanctions."

The magnitude of the explosion was roughly twice that of the 2009 test, according to the Vienna-based Comprehensive Nuclear-Test Ban Treaty Organization. The U.S. Geological Survey said that a seismic event measuring 5.1 magnitude had occurred.

U.S. intelligence agencies were analyzing the event and found that North Korea probably conducted an underground nuclear explosion with a yield of "approximately several kilotons", the Office of the Director of National Intelligence said.

Nuclear experts have described Pyongyang's previous two tests as puny by international standards. The yield of the 2006 test has been estimated at less than 1 kiloton (1,000 tons of TNT equivalent) and the second at some 2-7 kilotons, compared with 20 kilotons for a Nagasaki-type bomb.

Initial indications are that the test involved the latest version of a plutonium-based prototype weapon, according to one current and one former U.S. national security official. Both previous tests involved plutonium. If it turns out the test was of a new uranium-based weapon, it would show that North Korea has made more progress on uranium enrichment than previously thought.

The United States uses WC-135 Constant Phoenix "sniffer" aircraft to collect samples to identify nuclear explosions. These would need to be deployed quickly to detect whether highly enriched uranium rather than plutonium was used because uranium decays to undetectable levels within a matter of days. Plutonium takes much longer to decay.

North Korea trumpeted news of the test on its state television channel to patriotic music against a backdrop of its national flag.

"It was confirmed that the nuclear test that was carried out at a high level in a safe and perfect manner using a miniaturized and lighter nuclear device with greater explosive force than previously did not pose any negative impact on the surrounding ecological environment," KCNA said.

North Korea linked the test to its technical prowess in launching a long-range rocket in December, a move that triggered the U.N. sanctions, backed by China, that Pyongyang said prompted it to take Tuesday's action.

The North's ultimate aim, Washington believes, is to design an intercontinental ballistic missile capable of carrying a nuclear warhead that could hit the United States. North Korea says the program is aimed at putting satellites in space.

Despite its three nuclear tests and long-range rocket tests, North Korea is not believed to be close to manufacturing a nuclear missile capable of hitting the United States.

It used plutonium in previous nuclear tests and before Tuesday there had been speculation that it would use highly enriched uranium so as to conserve its plutonium stocks, as testing eats into its limited supply of materials to construct a nuclear bomb.

"VICIOUS CYCLE"

When Kim Jong-un, who is 30, took power after his father's death in December 2011, there were hopes that he would bring reforms and end Kim Jong-il's "military first" policies.

Instead, North Korea, whose economy is smaller than it was 20 years ago and where a third of children are believed to be malnourished, appears to be trapped in a cycle of sanctions followed by further provocations.

"The more North Korea shoots missiles, launches satellites or conducts nuclear tests, the more the U.N. Security Council will impose new and more severe sanctions," said Shen Dingli, a professor at Shanghai's Fudan University. "It is an endless, vicious cycle."

Options for the international community appear to be in short supply. Diplomats at the United Nations said negotiations on new sanctions could take weeks since China is likely to resist tough new measures for fear they could lead to further retaliation by the North Korean leadership.

Beijing has also been concerned that tougher sanctions could further weaken North Korea's economy and prompt a flood of refugees into China.

Tuesday's action appeared to have been timed for the run-up to February 16 anniversary celebrations of Kim Jong-il's birthday, as well as to achieve maximum international attention.

Significantly, the test comes at a time of political transition in China, Japan and South Korea, and as Obama begins his second term. The U.S. president will likely have to tweak his State of the Union address due to be given on Tuesday.

Japanese Prime Minister Shinzo Abe is bedding down a new government and South Korea's new president, Park Geun-hye, is preparing to take office on February 25.

China too is in the midst of a once-in-a-decade leadership transition to Xi Jinping, who takes office in March. Both Abe and Xi are staunch nationalists.

The longer-term game plan from Pyongyang may be to restart international talks aimed at winning food and financial aid. China urged it to return to the stalled "six-party" talks on its nuclear program, hosted by China and including the two Koreas, the United States, Japan and Russia.

Its puny economy and small diplomatic reach mean that North Korea struggles to win attention on the global stage - other than through nuclear tests and attacks on South Korea, the last of which was made in 2010.

"Now the next step for North Korea will be to offer talks... - any form to start up discussion again to bring things to their advantage," predicted Jeung Young-tae, senior research fellow at the Korea Institute for National Unification in Seoul.

(Additional reporting by Jack Kim, Christine Kim and Jumin Park in SEOUL; Linda Sieg in TOKYO; Louis Charbonneau and Michelle Nichols at the UNITED NATIONS; Fredrik Dahl in VIENNA; Michael Martina and Chen Aizhu in BEIJING; Mette Fraende in COPENHAGEN; Adrian Croft, Charlie Dunmore and Justyna Pawlak in BRUSSELS; Mark Hosenball, Paul Eckert, Roberta Rampton, Tabassum Zakaria and Jeff Mason in WASHINGTON; Editing by Nick Macfie, Claudia Parsons and David Brunnstrom)

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Train services between Marina Bay & Toa Payoh resume

SINGAPORE: SMRT said full train services between Marina Bay and Toa Payoh stations resumed at 11:20am.

In a tweet by SMRT at 11:30am, it said free buses to continue until further notice.

This comes after a cable caught fire in the tunnel at Newton station, causing train services on the North South Line to be disrupted on Wednesday morning.

In an earlier statement, SMRT said the fire has been put out.

The Singapore Civil Defence Force (SCDF) said they were informed of the incident at 9:04am and despatched two red rhinos, two fire engines, two fire bikes, two support vehicles and an ambulance.

SCDF also added that the fire involved electrical wiring about five metres away from the platform of the station.

The fire was extinguished using fire extinguishers and a small quantity of foam.

It added that no injuries have been reported so far.

Investigations into the cause of the fire are ongoing.

SMRT said passengers who could not continue with their journey because of the disruption, or had to exit an SMRT train station without taking a trip but had their fares deducted can get a refund at the Passenger Service Centre in any of SMRT's 83 stations within the next 14 days.

- CNA/ck

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Apple reportedly has 100-person team working on 'iWatch'

Is Apple eyeing an iWatch?

(Credit:
Sarah Tew and Christopher MacManus/CNET)

As the Apple "iWatch" rumor mill gets wound up, a new report holds that Apple already has a team of 100 people working on the rumored smart wristwatch, including some prominent Apple employees.

Following initial reports earlier this week that Apple was developing an iOS-based wristwatch, unnamed sources tell Bloomberg that the team working on just such a device has grown over the past year and includes employees from its marketing, software, and hardware units who had previously worked on the iPhone and
iPad.

Key members of the team are said to include James Foster, Apple's senior director of engineering, and Achim Pantfoerder, a program manager who is credited with 13 Apple patents, including an electronic sighting compass and ambient light sensor.

The report comes on the heels of a New York Times report over the weekend that said Apple was experimenting with wristwatch-like devices that sported curved glass. However, a team of this size and with such prominent membership suggests the company might be farther ahead than the experimental phase.

CNET has contacted Apple for comment and will update this report when we learn more.

Previous reports held that Apple had partnered with Intel to develop an iOS wristwatch that would be Bluetooth-enabled and sport a 1.5-inch OLED screen.

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State of the Union: "Act two" of Obama's 2nd term

When the curtain rises on President Obama's State of the Union speech tonight, the White House wants it viewed as "Act Two" - a follow-up to the national goals and policy objectives of which he spoke 22 days earlier on the West Front of the Capitol.

"The president has always viewed the two speeches, the inaugural address and the State of The Union, as two acts in the same play," said press secretary Jay Carney yesterday.

Though Mr. Obama has given more speeches this year on his proposals to stem gun violence and overhaul immigration policy, the "core emphasis" of his speech tonight is the economy.

"You'll hear from the president a very clear call for the need to take action to help our economy grow and help it create jobs," said Carney.

That includes the showdown with Congress over the mandatory spending cuts due to take effect starting March 1.

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Valerie Jarrett on SOTU: "An optimistic vision"

The president will urge Congress "not to shoot the economy in the foot," said Carney, by agreeing to his plan to avert the across-the-board spending cuts which the White House portrays as mindless and severe.

The president will again make it clear he wants a "balanced" plan that calls for additional tax revenue from America's top earners.

"My message to Congress is this: let's keep working together to solve this problem," the president said Saturday in his weekly address.

But Republican leaders say Mr. Obama already got his tax hikes as part of the "fiscal cliff" package, and now needs to focus exclusively on reductions in spending.

It'll be Mr. Obama's seventh appearance before a Joint Session of Congress and he'll be taking the rostrum aware that the national unemployment rate still hovers just under 8 percent and economic growth fell into negative territory at the end of 2012.

"The economy is not in a worse place than it was before," said Carney, pointing to the progress made since Mr. Obama's first State of the Union Address. "We were in economic freefall."

He said the president will make the case that "we are at a moment when the economy is poised to continue to grow...to build on the job creation that we've achieved -- over 6.1 million jobs created by our businesses over the past 35 or 36 months."

Carney added the president will propose further steps to grow the economy in a way that makes the middle class more secure and helps those trying to climb the ladder into the middle class.

"That is absolutely going to be his focus in the second term as it was in the first term," said Carney.

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Wanted Ex-Cop Believed in Armed Cabin Standoff

Fugitive former cop Christopher Dorner has barricaded himself inside a mountain cabin near Big Bear, Calif., and exchanged gunfire with police who had pursued him after he broke into a home in the area, authorities said.

Two San Bernadino County Sheriff's deputies injured in the firefight and subsequently airlifted to a nearby hospital. The extent of their injuries is unknown.

Dozens of local, state and federal authorities are at the scene in the San Bernadino Mountains, surrounding the cabin and engaged in an intense standoff with Dorner, a former Navy marksman who swore to kill police and their family members in a manifesto discovered online last week.

Dorner is believed to have broken into another home nearby and taken two women hostage before stealing a car, police said. Officials say Dorner crashed the vehicle and fled on foot, where sheriff's deputies and state Fish and Game officers exchanged fire with him, before he barricaded himself in the cabin.

The two hostages, who were tied up by Dorner but later escaped, were evaluated by paramedics and were determined to be uninjured.

Police have sealed all roads going into the area and imposed a no-fly zone above the cabin, which is in a wooded area that has received several inches of snow in recent days.

Four Big Bear area schools were briefly placed on lockdown.

The San Bernardino County Sheriff's Department stopped all traffic leaving the area and thoroughly searched vehicles, as SWAT team and tactical units could be seen driving toward the cabin, their sirens blaring.

Los Angeles Police Department/AP Photo

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FULL COVERAGE: Christopher Dorner Manhunt

Authorities believer Dorner may be watching reports of the standoff and have asked media not to broadcast images of police surrounding the cabin.

"If he's watching this, the message... is: Enough is enough. It's time to turn yourself in. It's time to stop the bloodshed. It's time to let this event and let this incident be over," said Los Angeles Police spokesman Andy Smith, told reporters at a press conference.

Dorner faces capital murder charges that involve the killing of Riverside police officer Michael Crain, who was gunned down in an ambush last Thursday.

Since then a massive manhunt has been underway, focused primarily in the San Bernardino Mountains, but extending to neighboring states and as far away as Mexico.

A capital murder charge could result in the death penalty if Dorner is captured alive and convicted. Crain was married with two children, aged 10 and 4.

The charges do not involve the slayings of Monica Quan and her fiance, who were found shot to death Feb. 3. Quan was the daughter of former LAPD Capt. Randal Quan, who was mentioned as a target of Dorner's fury in his so-called "manifesto," which he posted on his Facebook page.

PHOTOS: Former LAPD Officer Suspected in Shootings

In the 6,000 word "manifesto," Dorner outlined his anger at the Los Angeles Police Department for firing him, and made threats against individuals he believed were responsible for ending his career with the police force five years ago.

Dorner's grievance with police goes back five years when he was fired after filing a false report accusing other cops of brutality.

The LAPD has assigned 50 protection details to guard officers and their families who were deemed possible targets.

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Pope's sudden resignation sends shockwaves through Church

VATICAN CITY (Reuters) - Pope Benedict stunned the Roman Catholic Church on Monday when he announced he would stand down, the first pope to do so in 700 years, saying he no longer had the mental and physical strength to carry on.

Church officials tried to relay a climate of calm confidence in the running of a 2,000-year-old institution, but the decision could lead to uncertainty in a Church already besieged by scandal for covering up sexual abuse of children by priests.

The soft-spoken German, who always maintained that he never wanted to be pope, was an uncompromising conservative on social and theological issues, fighting what he regarded as the increasing secularization of society.

It remains to be seen whether his successor will continue such battles or do more to bend with the times.

Despite his firm opposition to tolerance of homosexual acts, his eight year reign saw gay marriage accepted in many countries. He has staunchly resisted allowing women to be ordained as priests, and opposed embryonic stem cell research, although he retreated slightly from the position that condoms could never be used to fight AIDS.

He repeatedly apologized for the Church's failure to root out child abuse by priests, but critics said he did too little and the efforts failed to stop a rapid decline in Church attendance in the West, especially in his native Europe.

In addition to child sexual abuse crises, his papacy saw the Church rocked by Muslim anger after he compared Islam to violence. Jews were upset over rehabilitation of a Holocaust denier. During a scandal over the Church's business dealings, his butler was accused of leaking his private papers.

In an announcement read to cardinals in Latin, the universal language of the Church, the 85-year-old said: "Well aware of the seriousness of this act, with full freedom I declare that I renounce the ministry of Bishop of Rome, Successor of St Peter ...

"As from 28 February 2013, at 20:00 hours (1900 GMT) the See of Rome, the See of St. Peter will be vacant and a conclave to elect the new Supreme Pontiff will have to be convoked by those whose competence it is."

POPE DOESN'T FEAR SCHISM

Benedict is expected to go into isolation for at least a while after his resignation. Vatican spokesman Father Federico Lombardi said Benedict did not intend to influence the decision of the cardinals in a secret conclave to elect a successor.

A new leader of the world's 1.2 billion Roman Catholics could be elected as soon as Palm Sunday, on March 24, and be ready to take over by Easter a week later, Lombardi said.

Several popes in the past, including Benedict's predecessor John Paul, have refrained from stepping down over their health, because of the division that could be caused by having an "ex-pope" and a reigning pope alive at the same time.

Lombardi said the pope did not fear a possible "schism", with Catholics owing allegiances to a past and present pope in case of differences on Church teachings.

He indicated the complex machinery of the process to elect a new pope would move quickly because the Vatican would not have to wait until after the elaborate funeral services for a pope.

It is not clear if Benedict will have a public life after he resigns. Lombardi said Benedict would first go to the papal summer residence south of Rome and then move into a cloistered convent inside the Vatican walls.

The resignation means that cardinals from around the world will begin arriving in Rome in March and after preliminary meetings, lock themselves in a secret conclave and elect the new pope from among themselves in votes in the Sistine Chapel.

There has been growing pressure on the Church for it to choose a pope from the developing world to better reflect where most Catholics live and where the Church is growing.

"It could be time for a black pope, or a yellow one, or a red one, or a Latin American," said Guatemala's Archbishop Oscar Julio Vian Morales.

The cardinals may also want a younger man. John Paul was 58 when he was elected in 1978. Benedict was 20 years older.

"We have had two intellectuals in a row, two academics, perhaps it is time for a diplomat," said Father Tom Reese, senior fellow at the Woodstock Theological Center at Georgetown University. "Rather than electing the smartest man in the room, they should elect the man who will listen to all the other smart people in the Church."

Liberals have already begun calling for a pope that would be more open to reform.

"The current system remains an 'old boy's club' and does not allow for women's voices to participate in the decision of the next leader of our Church," said the Women's Ordination Conference, a group that wants women to be able to be priests.

"GREAT COURAGE"

The last pope to resign willingly was Celestine V in 1294 after reigning for only five months, his resignation was known as "the great refusal" and was condemned by the poet Dante in the "Divine Comedy". Gregory XII reluctantly abdicated in 1415 to end a dispute with a rival claimant to the papacy.

Lombardi said Benedict's stepping aside showed "great courage". He ruled out any specific illness or depression and said the decision was made in the last few months "without outside pressure". But the decision was not without controversy.

"This is disconcerting, he is leaving his flock," said Alessandra Mussolini, a parliamentarian who is granddaughter of Italy's wartime dictator. "The pope is not any man. He is the vicar of Christ. He should stay on to the end, go ahead and bear his cross to the end. This is a huge sign of world destabilization that will weaken the Church."

Cardinal Stanislaw Dziwisz, secretary to the late Pope John Paul, said the former pope had stayed on despite failing health for the last decade of his life as he believed "you cannot come down from the cross."

While the pope had slowed down recently - he started using a cane and a wheeled platform to take him up the long aisle in St Peter's Square - he had given no hint recently that he was considering such a dramatic decision.

Elected in 2005 to succeed the enormously popular John Paul, Benedict never appeared to feel comfortable in the job.

"MIND AND BODY"

In his announcement, the pope told the cardinals that in order to govern "... both strength of mind and body are necessary, strength which in the last few months, has deteriorated in me to the extent that I have had to recognize my incapacity to adequately fulfill the ministry entrusted to me."

Before he was elected pope, the former Cardinal Joseph Ratzinger was known as "God's rottweiler" for his stern stand on theological issues. After a few months, he showed a milder side but he never drew the kind of adulation that had marked the 27-year papacy of his predecessor John Paul.

U.S. President Barack Obama extended prayers to Benedict and best wishes to those who would choose his successor.

German Chancellor Angela Merkel said the pope's decision must be respected if he feels he is too weak to carry out his duties. British Prime Minister David Cameron said: "He will be missed as a spiritual leader to millions."

The Archbishop of Canterbury, leader of the worldwide Anglican communion, said he had learned of the pope's decision with a heavy heart but complete understanding.

CHEERS AND SCANDAL

Elected to the papacy on April 19, 2005, Benedict ruled over a slower-paced, more cerebral and less impulsive Vatican.

But while conservatives cheered him for trying to reaffirm traditional Catholic identity, his critics accused him of turning back the clock on reforms by nearly half a century and hurting dialogue with Muslims, Jews and other Christians.

After appearing uncomfortable in the limelight at the start, he began feeling at home with his new job and showed that he intended to be pope in his way.

Despite great reverence for his charismatic, globe-trotting predecessor -- whom he put on the fast track to sainthood and whom he beatified in 2011 -- aides said he was determined not to change his quiet manner to imitate John Paul's style.

A quiet, professorial type who relaxed by playing the piano, he showed the gentle side of a man who was the Vatican's chief doctrinal enforcer for nearly a quarter of a century.

The first German pope for some 1,000 years and the second non-Italian in a row, he traveled regularly, making about four foreign trips a year, but never managed to draw the oceanic crowds of his predecessor.

The child abuse scandals hounded most of his papacy. He ordered an official inquiry into abuse in Ireland, which led to the resignation of several bishops.

Scandal from a source much closer to home hit in 2012 when the pontiff's butler, responsible for dressing him and bringing him meals, was found to be the source of leaked documents alleging corruption in the Vatican's business dealings.

Benedict confronted his own country's past when he visited the Nazi death camp at Auschwitz. Calling himself "a son of Germany", he prayed and asked why God was silent when 1.5 million victims, most of them Jews, were killed there.

Ratzinger served in the Hitler Youth during World War Two when membership was compulsory. He was never a member of the Nazi party and his family opposed Adolf Hitler's regime.

(Additional reporting by James Mackenzie, Barry Moody, Cristiano Corvino, Alexandra Hudson in Berlin, and Dagamara Leszkowixa in Poland; Editing by Peter Graff)

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Australia central bank sells scandal-hit note firm stake

SYDNEY: Australia's central bank on Tuesday announced the sale of its stake in scandal-hit note printing firm Securency and said an independent governance review had cleared it of "inappropriate" insight.

The Reserve Bank of Australia sold its 50 per cent holding in Securency, accused of taking bribes to win contracts in Asia, to British venture partner Innovia Films for A$65 million (US$66.7 million).

"The sale of the bank's interest in Securency is in accordance with the bank's long-standing intention to exit from the joint venture once Securency had established itself as a viable long-term supplier in the international market," the RBA said in a statement.

Note Printing Australia, a second RBA firm implicated in the Asia bribery scandal which the media broke in 2009, would remain a "wholly-owned subsidiary of the bank", it added.

The RBA also released a review into the governance of Securency and NPA by independent consultancy Cameron Ralph which cleared it of serious oversight issues.

Cameron Ralph said the RBA "gave reasonable consideration as to the governance arrangements for the two companies, and put in place processes for their oversight and reporting which were broadly consistent with usual practice at the time".

It appointed people to the firms' boards that it was "entitled to believe could direct the affairs of the companies with due care, diligence and skill", received regular reports and responded in a "considered and deliberate way".

The bank took "appropriate action where the entities appeared not to be performing in line with expectations and/or standards", Cameron Ralph added.

"Clearly, with the benefit of hindsight, there could have been more oversight applied to the activities of the companies, which may have detected earlier the alleged illegal payments" it said.

"But that does not mean that the Bank's oversight at the time was inappropriate."

Eight executives from Securency and NPA are facing claims they conspired to bribe officials at foreign banks to secure contracts to make plastic banknotes.

Both companies have also been charged over the alleged racket, which involved contracts in Indonesia, Malaysia, Vietnam and Nepal.

- AFP/ck

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Microsoft's Xbox Entertainment Studio wants to bring you interactive TV

Dive into Media host Peter Kafka, Nancy Tellem and Yusuf Mehdi. (Credit: Dan Farber/CNET)

DANA POINT, Calif.--Microsoft is the new Hollywood. At least, in the same way that Netflix, Hulu, Amazon and others are trying to create original programming to draw paying subscribers. The company recently opened the Xbox Entertainment Studio in Santa Monica, with former CBS TV executive Nancy Tellem at the helm.

The
Xbox started out as a gaming machine, but now the majority of the 76 million users worldwide spend more time viewing entertainment than playing game, said Yusuf Mehdi, senior vice president of Interactive Entertainment at Microsoft. Mehdi and Tellem were interview by All Things D's Peter Kafka at the Dive into Media conference Monday.

The user base has traditionally skewed male, but today 38 percent of Xbox users are women, Mehdi said, and 51 percent are people with children. Xbox users spend 87 hours per month on average engaged with the device, the Xbox accounted for 18 billion hours of entertainment in 2012.

Microsoft has 46 million global paying Xbox Live subscribers to entice into viewing the content produced by its entertainment studio. But the company also partners on the Xbox with more than 100 media partners, Mehdi said, including Netflix and Hulu. The challenge for Microsoft creating programming that is unique and differentiated from its competitors.

Tellem said her team of 150 people are looking to produce "hit" programming, including live events, reality shows, and scripted programming -- the same kind of premium content seen on regular TV, but with a twist.

The twist is pioneering interactive entertainment, creating the next iteration of TV beyond linear viewing, and a new relationship with consumers, Tellem said. She gave examples of live events, with friends remotely experiencing content together and interacting with the content on a second screen. Microsoft's original programming will target younger demographics initially. "Interactivity is a natural extension of what they do," she said.

Microsoft's interactive TV strategy relies on leveraging technologies such as Xbox 360 Kinect, which provides gesture and voice controls, and SmartGlass, which allows users to play video and other media from their mobile devices on their big-screen television via the Xbox 360.

According to the latest rumors, the next-generation Xbox 720 will be a mandatory part of the console. Microsoft indicated that only about one-third of Xbox 360 consoles have Kinect sensors.

Beyond the Xbox 360, Mehdi views the Xbox as a convergence device, where, for example, people could play a sports game, watch a game, engage in fantasy sports and trash talk with friends. That's the Microsoft vision -- winning the "living room" war with one, highly interactive Xbox packed with original entertainment and gaming content; fueled by advertisers, distributors, and a multitude of partners; and hundreds of millions of subscribers with multiyear contracts.

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Army Sgt. shares story behind Medal of Honor

(CBS News) PENTAGON - President Barack Obama awarded the Medal of Honor to former Army Staff Sgt. Clinton Romesha on Monday.

In 2009, with U.S. forces in eastern Afghanistan under Taliban attack, a wounded Romesha ducked enemy fire to rescue other wounded soldiers and recover bodies of the fallen.

Army staff sergeant receives Medal of Honor for actions during Afghanistan war battle

You have to see Combat Outpost Keating to realize just how indefensible it was to an attack from Taliban fighters. Just 52 American soldiers were down there, as well as Staff Sgt. Romesha.

"We were taking everything from, you know, very precise sniper fire, automatic weapon fire from machine gun positions. We were taking mortar and indirect fire, RPG fire," Romesha said.

The soldier said fire was coming 360 degrees all around, from every high point.

"We had taken casualties from the first barrage of fire that came in and continued to take them throughout the remainder of the fire fight," he said.

A photo of Clinton Romesha

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506infantry.org

A re-creation of the battle shows Romesha was everywhere that day, running across open ground to reinforce one weak point after another.

"At one point I witnessed three enemy fighters walk straight through our front gate like they owned the place," he said. "To see that, you know, it's just unreal for a second, but that's ours. We're not going to let them do that."

Although hit in the side by shrapnel from a rocket propelled grenade, Romesha was determined to do more than just survive.

"We weren't going to be beat that day and we were going to take it back," he said.

But they were up against 300 enemy fighters. Air strikes finally broke the enemy assault.

Afterwards, bullet-riddled Humvees and burned out buildings showed the kind of fire he and his men had braved.

Left: Raw video of the award ceremony

"We ended up losing eight, eight brave soldiers that day," Romesha said.

Three days later the Americans left Keating for good. Romesha said getting the medal was an emotional experience.

"It's hard to say. You win or lose, but to know, to know we had so many great soldiers there that stood proud and did their job. That's just an amazing thing to witness," he said.

What was gained that day? Nothing. What did Clint Romesha and his men achieve? Everything.

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Benedict's Legacy Marred by Sex Abuse Scandal

When Pope Benedict XVI resigns at the end of this month, he leaves behind a Church grappling with a global fallout from sex abuse and a personal legacy marred by allegations that he was instrumental in covering up that abuse.

As the sex abuse scandal spread from North America to Europe, Benedict became the first pope to meet personally with victims, and offered repeated public apologies for the Vatican's decades of inaction against priests who abused their congregants.

"No words of mine could describe the pain and harm inflicted by such abuse," the pope said in a 2008 homily in Washington, D.C., before meeting with victims of abuse for the first time. "It is important that those who have suffered be given loving pastoral attention." During the same trip to the U.S., he met with victims for the first time.

For some of the victims, however, Benedict's actions were "lip service and a public relations campaign," said Jeff Anderson, a Minnesota lawyer who represents victims of sex abuse. For 25 years, Benedict, then known as Cardinal Joseph Ratzinger, headed the Vatican office responsible for investigating claims of sex abuse, but he did not act until he received an explicit order from Pope John Paul II.

In 1980, as Archbishop of Munich, Ratzinger approved plans for a priest to move to a different German parish and return to pastoral work only days after the priest began therapy for pedophilia. The priest was later convicted of sexually abusing boys.

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PHOTOS: Church Sex Scandals

In 1981, Cardinal Ratzinger became head of the Vatican's Congregation for the Doctrine of the Faith – the office once known as the Inquisition -- making him responsible for upholding church doctrine, and for investigating claims of sexual abuse against clergy. Thousands of letters detailing allegations of abuse were forwarded to Ratzinger's office.

A lawsuit filed by the Center for Constitutional Rights on behalf of the Survivors' Network of Those Abused by Priests (SNAP), a victims' rights group, charges that as head of the church body Ratzinger participated in a cover-up of abuse. In an 84-page complaint, the suit alleges that investigators of sex abuse cases in several countries found "intentional cover-ups and affirmative steps taken that serve to perpetuate the violence and exacerbate the harm."

"Ratzinger, now Pope Benedict XVI, either knew and/or some cases consciously disregarded information that showed subordinates were committing or about to commit such crimes," the complaint says.

Jeffrey Lena, the Vatican's lawyer in the U.S., told the AP the complaint was a "ludicrous publicity stunt and a misuse of international judicial processes."

In the 1990s, former members of the Legion of Christ sent a letter to Ratzinger alleging that the founder and head of the Catholic order, Father Marcial Maciel, had molested them while they were teen seminarians. Maciel was allowed to continue as head of the order.

In 1996, Ratzinger didn't respond to letters from Milwaukee's archbishop about a priest accused of abusing students at a Wisconsin school for the deaf. An assistant to Ratzinger began a secret trial of the priest, Father Lawrence Murphy, but halted the process after Murphy wrote a personal appeal to Ratzinger complaining of ill health.

In 2001, Pope John Paul II issued a letter urging the Congregation of the Doctrine of the Faith to pursue allegations of child abuse in response to calls from bishops around the world.

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