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

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

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

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

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

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

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

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

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

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

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Cliff fight may knock out December rally

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

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

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

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

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

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

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

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

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

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

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

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

"And that is what is grabbing the markets."

BE CONTRARY AND MAKE MERRY

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

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

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

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

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

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

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

SOME FEEL THE BIG CHILL

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

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

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

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

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Dire Scene as Rebels Prepare to Leave Goma,Congo

NAIROBI, Kenya — Lootings. Assassinations. A spreading sense of lawlessness.

That was the alarming picture that emerged on Friday from Goma, a rebel-held city in the eastern Democratic Republic of Congo, despite vows by the rebels to withdraw peacefully.

Human rights groups said that the M23 rebels who captured Goma last week were now going on an assassination campaign as they prepared to leave, creating a vortex of crime and confusion.

“I think it will be extremely chaotic over the next few days,” said Ida Sawyer, a researcher for Human Rights Watch.

Residents in Goma reported that the rebels were piling cases of ammunition and other looted supplies onto trucks, with some of it heading toward neighboring Rwanda, while a new letter to a United Nations Security Council committee said that the Rwandan Army had crossed the border into Congo and had helped the fighters capture Goma in the first place.

Rwandan troops “openly entered into Goma through one of the two official border crossings,” said the letter, which was written by Steve Hege, the coordinator of a United Nations investigative panel, and was leaked by a third party.

The panel has accused Rwanda — with help from Uganda — of creating, equipping and commanding the rebels. In his letter, Mr. Hege contended that once the rebels and Rwandan soldiers chased the Congolese Army out of Goma, “these troops together took control over the entire city, marching through downtown dressed in a combination of R.D.F. and new M23 uniforms,” using R.D.F. to signify the Rwanda Defense Force.

Rwanda has strenuously denied any covert involvement in this round of conflict. But it has sent thousands of soldiers across the border to overthrow the Congolese government at least twice in the past, justifying such actions by blaming Congo for insecurity across the region.

Some of Rwanda’s staunchest allies, including the United States, have recently cut aid to Rwanda amid the allegations of meddling in Congo. On Friday, the BBC reported that the British government had suspended more than $33 million in aid, which Rwanda desperately needs to keep its government running.

Congo and Rwanda seem to be heading into yet another turbulent, acrimonious phase, with tensions growing by the day. It began this spring when more than 1,000 former rebels who had been integrated into the Congolese Army mutinied. The rebels named themselves the M23 after March 23, 2009, the date of a failed peace deal between the two sides.

Most of the rebel commanders were Tutsi, the same minority ethnic group that dominates politics and the economy in Rwanda, and many of them had fought in the Rwandan Army.

The rebels indicated this week that they would abide by a regional agreement signed last weekend to leave Goma. “And we are continuing with that plan,” Bertrand Bisimwa, an M23 spokesman, said Friday.

He said the rebels had begun withdrawing from Goma and planned to station all troops about 12 miles outside the city, as the agreement demanded.

But another rebel spokesman contradicted him, telling The Associated Press that the rebels would not be able to leave Goma for “logistical reasons” until Sunday.

Aid workers in Goma said on Friday that they could not see any sign of a rebel pullout.

“I’m not seeing big movements of soldiers,” said Richard Nunn, a coordinator for Oxfam. “I still see some rebel soldiers in town. It’s very difficult to say what’s going on right now.”

Other residents reported an increase in carjackings and break-ins, saying that Goma was becoming virtually lawless at night. Many people fear that a vacuum could open up when the rebels leave, and that the Congolese Army could be even worse.

When Congolese troops hastily retreated from Goma last week, Mr. Nunn said, “there was a lot of rape, a lot of insecurity, a lot of extortion and some killings.”

“It was a mess, and people are worried about the same kind of thing happening when they come back,” he added.

The deal struck last weekend calls for one battalion of government troops to return to Goma’s streets and for a mixed force of rebels, government troops and a yet-to-be-named “neutral force” to guard the airport, from which millions of dollars in minerals is exported every month.

The rebels have clearly infiltrated the police in Goma, with officers who speak the principal Rwandan language strutting around the city last week in uniforms so freshly sewn that loose threads still hung off them. Congolese officers who had been disarmed said that only Tutsi officers were allowed to carry guns.

Most analysts believe that the rebels will officially withdraw from Goma soon, after cleaning out everything of value (there were reports that they robbed the central bank this week). Because the Congolese government is so weak and its army is in such disarray, the rebels are expected to extract a new deal that will give them top positions in the army and an even firmer grip on a large and lucrative swath of eastern Congo.

Residents said that at least 10 people in Goma had been assassinated in the past 10 days, with many more disappearances. After one magistrate was struck in the face with a machete and nearly killed last week, United Nations peacekeepers evacuated more than 20 other magistrates.

“We’ve confirmed several cases of targeted killings by the M23 in and around Goma,” said Ms. Sawyer, the Human Rights Watch researcher. She said the victims included “those who refused to join the M23 or act as informants, individuals deemed uncooperative during looting incidents, and other suspected ‘enemies.’ ”

The rebels have denied any wrongdoing.

Mr. Bisimwa, the rebel spokesman, said that he had heard the same accusations but that no one had offered proof.

“Where are the facts?” he asked.

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Dennis Quaid Files for Divorce, Seeks Joint Custody

By Mike Fleeman

11/30/2012 at 09:20 PM EST

Kimberly Buffington-Quaid and Dennis Quaid

Casey Rodgers/NBC/AP

Dennis Quaid is ready to end his marriage for good.

After his wife of eight years, Kimberly Buffington-Quaid, sought legal separation in October, the Vegas star filed Friday for divorce in Los Angeles Superior Court.

The actor requests joint physical and legal custody of their 4-year-old twins, Thomas and Zoe, and offers to pay spousal support, according to the petition.

This will be the third divorce for Quaid, 58, who was previously married to Meg Ryan and P.J. Soles.

Kimberly, a former real estate agent, initially filed for divorce in March. She
put the divorce on hold a month later, pulling the papers so they could work on their marriage, before then filing for separation.

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Kenya village pairs AIDS orphans with grandparents

NYUMBANI, Kenya (AP) — There are no middle-aged people in Nyumbani. They all died years ago, before this village of hope in Kenya began. Only the young and old live here.

Nyumbani was born of the AIDS crisis. The 938 children here all saw their parents die. The 97 grandparents — eight grandfathers among them — saw their middle-aged children die. But put together, the bookend generations take care of one another.

Saturday is World AIDS Day, but the executive director of the aid group Nyumbani, which oversees the village of the same name, hates the name which is given to the day because for her the word AIDS is so freighted with doom and death. These days, it doesn't necessarily mean a death sentence. Millions live with the virus with the help of anti-retroviral drugs, or ARVs. And the village she runs is an example of that.

"AIDS is not a word that we should be using. At the beginning when we came up against HIV, it was a terminal disease and people were presenting at the last phase, which we call AIDS," said Sister Mary Owens. "There is no known limit to the lifespan now so that word AIDS should not be used. So I hate World AIDS Day, follow? Because we have moved beyond talking about AIDS, the terminal stage. None of our children are in the terminal stage."

In the village, each grandparent is charged with caring for about a dozen "grandchildren," one or two of whom will be biological family. That responsibility has been a life-changer for Janet Kitheka, who lost one daughter to AIDS in 2003. Another daughter died from cancer in 2004. A son died in a tree-cutting accident in 2006 and the 63-year-old lost two grandchildren in 2007, including one from AIDS.

"When I came here I was released from the grief because I am always busy instead of thinking about the dead," said Kitheka. "Now I am thinking about building a new house with 12 children. They are orphans. I said to myself, 'Think about the living ones now.' I'm very happy because of the children."

As she walks around Nyumbani, which is three hours' drive east of Nairobi, 73-year-old Sister Mary is greeted like a rock star by little girls in matching colorful school uniforms. Children run and play, and sleep in bunk beds inside mud-brick homes. High schoolers study carpentry or tailoring. But before 2006, this village did not exist, not until a Catholic charity petitioned the Kenyan government for land on which to house orphans.

Everyone here has been touched by HIV or AIDS. But only 80 children have HIV and thanks to anti-retroviral drugs, none of them has AIDS.

"They can dream their dreams and live a long life," Owens said.

Nyumbani relies heavily on U.S. funds but it is aiming to be self-sustaining.

The kids' bunk beds are made in the technical school's shop. A small aquaponics project is trying to grow edible fish. The mud bricks are made on site. Each grandparent has a plot of land for farming.

The biggest chunk of aid comes from the United States President's Emergency Plan for AIDS Relief (PEPFAR), which has given the village $2.5 million since 2006. A British couple gives $50,000 a year. A tree-growing project in the village begun by an American, John Noel, now stands six years from its first harvest. Some 120,000 trees have already been planted and thousands more were being planted last week.

"My wife and I got married as teenagers and started out being very poor. Lived in a trailer. And we found out what it was like to be in a situation where you can't support yourself," he said. "As an entrepreneur I looked to my enterprise skills to see what we could do to sustain the village forever, because we are in our 60s and we wanted to make sure that the thousand babies and children, all the little ones, were taken care of."

He hopes that after a decade the timber profits from the trees will make the village totally self-sustaining.

But while the future is looking brighter, the losses the orphans' suffered can resurface, particularly when class lessons are about family or medicine, said Winnie Joseph, the deputy headmaster at the village's elementary school. Kitheka says she tries to teach the kids how to love one another and how to cook and clean. But older kids sometimes will threaten to hit her after accusing her of favoring her biological grandchildren, she said.

For the most part, though, the children in Nyumbani appear to know how lucky they are, having landed in a village where they are cared for. An estimated 23.5 million people in sub-Saharan Africa have HIV as of 2011, representing 69 percent of the global HIV population, according to UNAIDS. Eastern and southern Africa are the hardest-hit regions. Millions of people — many of them parents — have died.

Kitheka noted that children just outside the village frequently go to bed hungry. And ARVs are harder to come by outside the village. The World Health Organization says about 61 percent of Kenyans with HIV are covered by ARVs across the country.

Paul Lgina, 14, contrasted the difference between life in Nyumbani, which in Swahili means simply "home," and his earlier life.

"In the village I get support. At my mother's home I did not have enough food, and I had to go to the river to fetch water," said Lina, who, like all the children in the village, has neither a mother or a father.

When Sister Mary first began caring for AIDS orphans in the early 1990s, she said her group was often told not to bother.

"At the beginning nobody knew what to do with them. In 1992 we were told these children are going to die anyway," she said. "But that wasn't our spirit. Today, kids we were told would die have graduated from high school."

___

On the Internet:

http://www.trees4children.org/

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Cliff fight may knock out December rally

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

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

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

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

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

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

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

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

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

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

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

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

"And that is what is grabbing the markets."

BE CONTRARY AND MAKE MERRY

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

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

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

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

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

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

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

SOME FEEL THE BIG CHILL

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

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

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

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

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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New Georgia Government Starts Punishing Members of Old

Justyna Mielnikiewicz for The New York Times

Georgians in the office of Archil Kbilashvili, the nation’s new prosecutor, to file complaints.

TBILISI, Georgia — These days, when the Georgian prosecutor’s office opens, people are lined up, clutching plastic bags full of documents. One after another, they are presenting their case that President Mikheil Saakashvili’s government stripped them of something: a state job, a piece of land, an apartment. Most of them want to see someone punished.

The promise that officials would be punished helped propel the billionaire Bidzina Ivanishvili to victory in October parliamentary elections, dislodging the group of politicians who had controlled Georgia for nine years. Mr. Saakashvili conceded the loss and agreed to enter the opposition, and for the first time in Georgia’s post-Soviet history, power changed hands legally.

About two months later, the Georgian experiment — to many in the West, a last hope for building democracy in inhospitable post-Soviet terrain — hangs in the balance.

Mr. Ivanishvili has embarked on the project of prosecuting former officials more swiftly than anyone expected, saying he cannot ignore the public’s demand for justice. But numerous cases are targeting political rivals, since Mr. Saakashvili remains president until next October. The authorities have already charged 23 officials from Mr. Saakashvili’s government with crimes like corruption and torture, and they may prosecute his former interior minister, who is also the leader of the Parliament’s main opposition party.

Alexander Rondeli, a political analyst, said Mr. Ivanishvili was following in the winner-take-all tradition of Georgian politics.

“In Georgia, the political enemy is an enemy. I don’t think it gives a very good image to this country, but it is our culture,” said Mr. Rondeli, president of the Georgian Foundation for Strategic and International Studies. “It’s clear now that the new political force wants to annihilate the previous one. So that is completely clear. It does not look very much like democracy, but they say that the rule of law is higher.”

It was apparent there would be some kind of legal reckoning if Mr. Saakashvili lost power. Though his government was embraced in the United States and Europe for its pro-Western orientation, complaints mounted at home, especially about police brutality and the lack of due process in the justice system.

This fall, video was released showing prison inmates being beaten and sodomized by guards, releasing a huge wave of public anger. Rights activists have long complained that officials acted with impunity in grave cases, like the death of Sandro Girgvliani, a bank executive who was abducted by law enforcement officers in 2006 after an altercation.

As a candidate, Mr. Ivanishvili promised to deliver justice swiftly, sometimes claiming he could create an independent court system in as little as a year. Asked how, he told Forbes, “You have to jail one minister — two, max — to show everyone that there will be no forgiveness. Show that there’s political will up there, and it will all line up quickly.”

Georgia’s new prosecutor, Archil Kbilashvili, said that more than 3,000 criminal complaints had been filed against former officials over the last month, and he planned to triple the number of investigators in the division handling misuse of authority. If there is a criticism he hears most often from Georgians, he said, it is that he is acting too slowly.

As an example, he offered the case of Bacho Akhalaia, a much-feared former defense and interior minister who fled the country after the elections, evidently expecting to be arrested. When news got out that Mr. Akhalaia had returned, Mr. Kbilashvili said, he had been in his job for just five days when he was inundated with “many, many phone calls” asking why he had not ordered Mr. Akhalaia’s arrest.

“I said I have no evidence against him, he is a free citizen of this country,” Mr. Kbilashvili said. Still, the next day, Mr. Akhalaia was arrested based on the relatively mild charges of striking a sergeant with a knife handle and publicly beating servicemen. After that, new allegations began to flow in from citizens who were “somehow encouraged” to testify against Mr. Akhalaia, Mr. Kbilashvili said.

Two prominent legal rights groups have already warned that Mr. Ivanishvili’s team is approaching questions of justice too hastily. Tamar Chugoshvili, of the Georgian Young Lawyers’ Association, said her group withdrew from a parliamentary effort to compile a list of political prisoners for release, because a two-week deadline made it “impossible to really study the cases in detail.”

Olesya Vartanyan contributed reporting.

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The X Factor Announces Top 6

TV Watch

The X Factor

11/29/2012 at 09:40 PM EST

From left; Demi Lovato, Britney Spears and Simon Cowell

FOX

Mario Lopez called the first elimination on Thursday's The X Factor a "bit of a shocker."

And so was the second.

The top eight contestants sang No. 1 hits Wednesday in an emotional night. Keep reading to find out which two performers were sent packing – and who's in season 2's top six ...

Paige Thomas was the first to go – which is shocking because she toned down her over-the-top performing style to sing Rick Astley's "Never Gonna Give You Up" like a like a "legitimate pop star," according to Simon Cowell.

That left Demi Lovato with just one singer on her team: CeCe Frey, who was told (by Cowell) to "pack her bags" Wednesday after her performance of "Lady Marmalade."

But L.A. Reid's contestant Vino Alan and Team Britney's Diamond White were in the bottom two and had to sing for survival. He performed "Trouble" and she sang Beyoncé's "I Was Here."

L.A. voted to send home Diamond; Britney returned the favor and voted to send home Vino. Demi voted Vino out as well. That left Simon ... and he fell in line with the female panelists, voting to get rid of Vino. Either one would have been a shock but Vino had been ranked third last week.

Here's how the top six rank this week:
1. Carly Rose Sonenclar
2. Tate Stevens
3. Emblem3
4. Fifth Harmony
5. CeCe Frey
6. Diamond White

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Clinton releases road map for AIDS-free generation

WASHINGTON (AP) — In an ambitious road map for slashing the global spread of AIDS, the Obama administration says treating people sooner and more rapid expansion of other proven tools could help even the hardest-hit countries begin turning the tide of the epidemic over the next three to five years.

"An AIDS-free generation is not just a rallying cry — it is a goal that is within our reach," Secretary of State Hillary Rodham Clinton, who ordered the blueprint, said in the report.

"Make no mistake about it, HIV may well be with us into the future but the disease that it causes need not be," she said at the State Department Thursday.

President Barack Obama echoed that promise.

"We stand at a tipping point in the fight against HIV/AIDS, and working together, we can realize our historic opportunity to bring that fight to an end," Obama said in a proclamation to mark World AIDS Day on Saturday.

Some 34 million people worldwide are living with HIV, and despite a decline in new infections over the last decade, 2.5 million people were infected last year.

Given those staggering figures, what does an AIDS-free generation mean? That virtually no babies are born infected, young people have a much lower risk than today of becoming infected, and that people who already have HIV would receive life-saving treatment.

That last step is key: Treating people early in their infection, before they get sick, not only helps them survive but also dramatically cuts the chances that they'll infect others. Yet only about 8 million HIV patients in developing countries are getting treatment. The United Nations aims to have 15 million treated by 2015.

Other important steps include: Treating more pregnant women, and keeping them on treatment after their babies are born; increasing male circumcision to lower men's risk of heterosexual infection; increasing access to both male and female condoms; and more HIV testing.

The world spent $16.8 billion fighting AIDS in poor countries last year. The U.S. government is the leading donor, spending about $5.6 billion.

Thursday's report from PEPFAR, the President's Emergency Plan for AIDS Relief, outlines how progress could continue at current spending levels — something far from certain as Congress and Obama struggle to avert looming budget cuts at year's end — or how faster progress is possible with stepped-up commitments from hard-hit countries themselves.

Clinton warned Thursday that the U.S. must continue doing its share: "In the fight against HIV/AIDS, failure to live up to our commitments isn't just disappointing, it's deadly."

The report highlighted Zambia, which already is seeing some declines in new cases of HIV. It will have to treat only about 145,000 more patients over the next four years to meet its share of the U.N. goal, a move that could prevent more than 126,000 new infections in that same time period. But if Zambia could go further and treat nearly 198,000 more people, the benefit would be even greater — 179,000 new infections prevented, the report estimates.

In contrast, if Zambia had to stick with 2011 levels of HIV prevention, new infections could level off or even rise again over the next four years, the report found.

Advocacy groups said the blueprint offers a much-needed set of practical steps to achieve an AIDS-free generation — and makes clear that maintaining momentum is crucial despite economic difficulties here and abroad.

"The blueprint lays out the stark choices we have: To stick with the baseline and see an epidemic flatline or grow, or ramp up" to continue progress, said Chris Collins of amFAR, the Foundation for AIDS Research.

His group has estimated that more than 276,000 people would miss out on HIV treatment if U.S. dollars for the global AIDS fight are part of across-the-board spending cuts set to begin in January.

Thursday's report also urges targeting the populations at highest risk, including gay men, injecting drug users and sex workers, especially in countries where stigma and discrimination has denied them access to HIV prevention services.

"We have to go where the virus is," Clinton said.

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Taking a page from Louis C.K., Chill launches online store for films, comedy specials

NEW YORK (TheWrap.com) – Chill, a social video platform with close to 20 million users, has launched Chill Direct, a new store for creatives like Maria Bamford and Michael Urie to sell their movies, specials and documentaries directly to fans.

Comedian Louis C.K. sent shockwaves through the entertainment industry this summer by selling a comedy special directly online rather than making a distribution deal with a television network or online service. He made millions, and various others have followed suit, including Jim Gaffigan and Aziz Ansari.

Chill sees an opportunity to enter this emerging market, empowering artists and offering them an opportunity to control the distribution and monetization of their ongoing projects.

“The community gives filmmakers and comedians the ability to distribute premium video directly to fans,” CEO Brian Norgard told TheWrap. “The common analogy is to Louis C.K. and his ‘Live at Beacon Theater.‘ That was a seminal moment in the entertainment business and a lot of things now allow direct-to-fan to become a viable model.”

Artists who choose to sell through Chill also can sell their videos elsewhere, but Chill Direct launches with eight videos exclusive to the site. That slate includes “Maria Bamford: the Special Special Special!,” an hour-long comedy special starring Bamford, “Thank You For Judging,” a documentary from “Ugly Betty” actor Urie about high school speech and debate and “Unknown Sender,” a suspense series from “48 Hrs” and “Die Hard” scribe Stephen E. de Souza.

Starting Thursday, any artist can create a page for a project and has complete creative control over the page, from information about the project to trailers to pricing. Meanwhile, Chill handles distribution across devices as well as payments.

Artists retain rights to their own intellectual property while Chill takes a 30 percent cut of any transaction.

“What Chill does is let anyone build out socially integrated marketing pages – we call them story pages – beautiful, high-resolution tantalizing receptacles of premium videos,” Norgard said.

Chill, funded by WME and Kleiner Perkins Caulfield & Byers and others, has previously enabled frictionless uploading, consumption and sharing of the web’s most popular videos. This maintains a social layer, allowing for commenting and offering bundles that combine the video with other perks like merchandise or meeting the creator.

“The land of premium video is still a very closed marketplace,” Norgard said. “If you have tremendous business development skills or connections to sell a film to Netflix or Hulu, you’re lucky. The ad-supported model doesn’t fit every type of content. There is plenty of stuff out there like documentary films and comedy specials where creators are between a rock and a hard place and wan to get it out there, distribute it, own the right but not put it on a free streaming site like YouTube.”

Selling direct to fans also offers a new revenue stream to a company that until now was mostly luring people a few times a day for videos.

Internet News Headlines – Yahoo! News

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