A Minute With: Director Peter Jackson on shooting “The Hobbit”

LOS ANGELES (Reuters) – After bringing J.R.R. Tolkien‘s “The Lord of the Rings” trilogy to life, filmmaker Peter Jackson is back in the world of Middle Earth with the author’s prequel, “The Hobbit.”

The three-film series is due to open in U.S. theaters on Friday with “The Hobbit: An Unexpected Journey.”

The Oscar-winning director, 51, told Reuters about the 3D film, including the 48 frames per second (fps) format he used, which was widely debated by fans and critics.

Q: You originally intended “The Hobbit” to only be two parts. Why stretch it out to three?

A: “Back in July, we were near the end of our shoot and we started to talk about the things that we had to leave out of the movies. There’s material at the end of ‘The Return of the King’ (the final part of ‘The Lord of the Rings‘ trilogy) in the appendices that takes place around the time of ‘The Hobbit.’

“We were thinking, this is our last chance because it’s very unlikely we’re ever going to come back to Middle Earth as filmmakers. So we talked to the studio and next year we’re going to be doing another 10 to 12 weeks of shooting because we’re now adapting more of Tolkien’s material.”

Q: At what point did you decide you would direct the film yourself after originally handing it to Guillermo del Toro?

A: “At the time (we wrote the script), I was worried about repeating myself and worried that I was competing with myself. I thought it would be interesting to have another director with a fresh eye coming in and telling the story. But after Guillermo left, having worked on script and the production for well over a year at that stage, I was very emotionally attached to it. I just thought, this is an opportunity I’m not going to say no to.”

Q: You hired Gollum actor Andy Serkis to do second unit directing on the film, something he has never done before. What made you hand the task to a novice?

A: “I know how strongly Andy has been wanting to direct. One of the problems with second unit is that you tend to have conservative footage given to you by the director. They play it safe. I knew that I wouldn’t get that from Andy because he’s got such a ferocious energy. He goes for it and doesn’t hold back. I knew that if Andy was the director I would be getting some interesting material, that it would have a life and energy to it.”

Q: What inspired you to make a film in 48 fps?

A: “Four years ago I shot a six or seven minute King Kong ride for Universal Studios’ tram ride in California. The reason we used the high frame rate was that we didn’t want people to think it’s a movie. You want that sense of reality, which you get from a high frame rate, of looking in to the real world. At the time, I thought it would be so cool to make a feature film with this process.”

Q: Not everyone has embraced “The Hobbit” in 48 fps.

A: “For the last year and a half there’s been speculation, largely negative, about it and I’m so relieved to have gotten to this point. I’ve been waiting for this moment when people can actually see it for themselves. Cinephiles and serious film critics who regard 24 fps as sacred are very negative and absolutely hate it. Anybody I’ve spoken to under the age of 20 thinks it’s fantastic. I haven’t heard a single negative thing from the young people, and these are the kids that are watching films on their iPads. These are the people I want to get back in the cinema.”

Q: Why all the hoopla over a frame rate?

A: “Somehow as humans, we have a reaction to change that’s partly fear driven. But there are so many ways to look at movies now and it’s a choice that a filmmaker has. To me as a filmmaker, you’ve got to take the technology that’s available in 2012, not the technology we’ve lived with since 1927, and say how can we enhance the experience in the cinema? How can we make it more immersive, more spectacular?”

Q: George Lucas sold Lucasfilm to Disney for $ 4 billion. Do you think you will sell your New Zealand facility Weta someday?

A: “I would if I want to retire at some stage and want to have a nice easy life, which will hopefully happen one day. But in the foreseeable future, the fact that I’m an owner of my own digital effects facility is a fantastic advantage for me.”

Q: How so?

A: “When we asked the studio if we could shoot ‘The Hobbit‘ at 48 fps, we promised the budget would be the same. But it actually does have a cost implication because you’ve got to render twice as many frames and the rendering takes more time. The fact that we owned Weta and could absorb that in-house was actually part of the reason we were able to do the 48 frames.”

(Editing by Patricia Reaney)

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Researchers Find More Than 200 Genes Linked to Crohn’s Disease

British scientists have identified more than 200 gene locations associated with Crohn’s disease, an incurable digestive disorder. Their research utilized the entire human genome, the complete set of human genetic information stored in DNA.

The total is larger than the number of genes located for any other disease, according to ScienceDaily. For example, there are 66 known locations for type 2 diabetes.

The researchers, from University College London (UCL), believe that their findings will eventually lead to more personalized Crohn‘s treatment. The disorder is one of the two principal types of inflammatory bowel disease (IBD). The other is ulcerative colitis. The Crohn’s & Colitis Foundation of America states that Crohn’s affects up to 700,000 Americans. It typically strikes between 15 and 35, but can occur at any age.

The exact cause of the disorder has eluded researchers for decades. Most experts believe that several factors play important roles in the development of the disease. Those cited most often are genetics, environmental factors, and an abnormal immune reaction to benign substances like bacteria in the intestines. Crohn’s is a chronic illness that can involve any part of the digestive tract from mouth to anus, according to PubMed Health.

Scientists have believed for years that understanding the genetic component of such a complex disease is critical to explaining symptoms and developing better methods of treatment. However, they have remained stymied over detailed genetic mapping for the disorder because of the large number of genes involved, complex interactions with the environment, and a wide range of symptoms.

The British team utilized data from a consortium with information on nearly 1,700 Crohn’s patients. Data provided by the U.S. National Institute of Diabetes and Digestive and Kidney Diseases on 813 patients led to replication of results of the British study.

Results from the UCL study appeared in the American Journal of Human Genetics. One of the factors the team believes was responsible for their success was use of highly detailed maps of the human genome. Another was their ability to subdivide Crohn’s patients by the way they presented with the disorder. The results also represent the first definite signs that certain patient sub-groups are predisposed to carry different risk genes.

Like most patients who have had this illness for decades, I often become impatient when I read about a discovery linked to the genetics of Crohn’s disease. Since about 20 percent of patients have a close family member with IBD, years ago, I asked whether I should have my daughter tested.

The doctor and I agreed that it was pointless. Her symptoms were either due to Crohn’s or not. Time would tell. From a patient’s perspective, what is strikingly different about the identification of more than 200 genes is the hope that it will lead to more personalized treatment, not just more data on a library shelf.

Vonda J. Sines has published thousands of print and online health and medical articles. She specializes in diseases and other conditions that affect the quality of life.

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Rice drops out of race for top State post

Susan Rice (Stephen Lam/Reuters)Susan Rice, the embattled U.S. ambassador to the U.N., withdrew her name on Thursday from consideration to be secretary of state in the face of angry Republican opposition.

"If nominated, I am now convinced that the confirmation process would be lengthy, disruptive and costly—to you and to our most pressing national and international priorities," Rice wrote in a letter to President Barack Obama. (NBC News first reported the news.)

Obama had not formally nominated her, but Rice was the favorite for the post and spent time on Capitol Hill trying—vainly—to placate her Republican critics. The move leaves Democratic Sen. John Kerry, who chairs the Senate Foreign Relations Committee, as the likely front-runner.

In a statement, Kerry praised Rice as "an extraordinarily capable and dedicated public servant" and underlined that "today's announcement doesn't change any of that."

"As someone who has weathered my share of political attacks and understands on a personal level just how difficult politics can be, I've felt for her throughout these last difficult weeks, but I also know that she will continue to serve with great passion and distinction," Kerry said.

Obama confirmed her withdrawal in a statement on Thursday afternoon, saying: "While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks, her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first."

Talk of Rice being nominated to succeed Secretary of State Hillary Clinton stirred significant controversy due to Rice's role in the handling of the Sept. 11, 2012, attack on the U.S. Consulate in Benghazi, Libya. The assault claimed the lives of Ambassador Chris Stevens and three other Americans.

Republicans accused Rice of misleading the public about intelligence that indicated the attack was premeditated. (The Obama administration has also been accused of ignoring requests for increased security at the American compound.) The White House steadfastly denied deliberately misleading the public.

Rice's withdrawal amounted to a painful postelection defeat for Obama, who had staunchly defended Rice and even vowed to nominate her over Republican objections if he concluded that she was the best person for the job. It will be viewed as a win for Arizona Republican Sen. John McCain and other Republican senators who had vowed to block Rice's confirmation.

McCain spokesman Brian Rogers emailed Yahoo News to express that the senator "thanks Ambassador Rice for her service to the country and wishes her well. ... He will continue to seek all the facts about what happened before, during and after the attack on our consulate in Benghazi that killed four brave Americans."

Republican Sen. Lindsey Graham of South Carolina, another leading Rice detractor, declared in a statement on Thursday, "I respect Ambassador Rice's decision." Graham said Obama "has many talented people to choose from" to succeed Clinton.

Graham has accused the administration of stonewalling efforts to look into the Benghazi attack and vowed to keep "working diligently to get to the bottom of what happened."

If Obama picks Kerry, that could touch off a political war in Massachusetts for his Senate seat. Republican Sen. Scott Brown, defeated on Nov. 6 by Democrat Elizabeth Warren, could make a play for that spot.

Obama is expected to overhaul much of his foreign policy and national security teams for the coming term. Defense Secretary Leon Panetta is departing, the position of director of the CIA is open after the David Petraeus scandal and Homeland Security Secretary Janet Napolitano is rumored to be looking to replace Attorney General Eric Holder.

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The Hobbit: Richard Armitage Talks Preparations For Playing Thorin Oakenshield

British actor Richard Armitage admitted it wasn’t a walk in the park to play a J.R.R. Tolkien character in Peter Jackson’s reimagining of “The Hobbit,” the first installment of which is on its way into theaters.

Upon touching down in New Zealand, where the trilogy was shot, the cast had a lot of character preparation to do.

PLAY IT NOW: Martin Freeman Discusses The Hobbit’s ‘Good Chemistry’ & Playing Bilbo Baggins

“We arrived in February 2011 and we went straight into a training program, which was called ‘Dwarf Bootcamp,’ which was literally boots — these huge boots. We learned how to walk, we wrestled with each other, we did archery together, we did sword fighting, hammer fighting, horse riding — everything you could possibly think of,” Richard, who plays Thorin Oakenshield in the film told Access Hollywood at the film’s junket.

In addition, the cast, which includes his former “Cold Feet” co-star James Nesbitt as Bofur, found ways to get to know each other better off set.

VIEW THE PHOTOS: The Hobbit: An Unexpected Journey — New York City Premiere

“We went round to each other’s houses and we cooked food together, we went to the pub and got drunk together, so there was an incredibly great bonding time between the dwarves,” he said.

Richard had plenty of experience sword fighting and horse riding in the BBC America series “Robin Hood,” but it was something else that came in handy during the long days on set.

“I’d done a number of shows where I’d had to use sword fighting and I’d also done horse riding. I’d also pulled guns out of my pocket. That was less useful,” he laughed, likely referring to his recent role in the PBS-import series “MI-5,” where he played a British spy. “But, yeah, you draw on everything. I’d worked at the Royal Shakespeare Company, so the vocal work was really useful to kind of pull that from there. I’d worked in a circus, there were… all sorts of things that were really useful, but the one thing that I do have — for lack of talent — is stamina and that’s the one thing I think everybody needed on this job.”

VIEW THE PHOTOS: Meet ‘The Hobbit’ Cast!

An imagination was useful also, but Richard said what turned out on the big screen was still wilder – and more beautiful – than he dreamed of.

“So many moments… Actually, apart from the eagles — which every single time I’ve seen this film absolutely blows my mind and I can barely keep the tears back and [it has] nothing to do with the pathos of the scene, just that feeling of flight moves me — is the throne of Aragorn, in the beginning of the prologue,” he told Access of the moment that moved him most. “When it got to [filming] that scene, I walked on and… it was just a green cross on the floor with a tiny green chair… [But in the film], they just made this incredible, almost space aged, sort of suspended seat in the middle of this stalagmite. It just blows my mind when I see that.”

VIEW THE PHOTOS: The Brit Pack: Hot Shots Of Stars From The UK!

“The Hobbit: An Unexpected Journey” hits theaters on December 14, 2012, followed by “The Hobbit: The Desolation of Smaug,” on December 13, 2013 and “The Hobbit: There and Back Again,” on July 18, 2014.

– Jolie Lash

Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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‘The Hobbit’: Like One Bad Video Game

Perhaps the most exciting thing about Peter Jackson‘s landmark, blockbuster Lord of the Rings films was that they made fans, through a combination of stunning landscapes and intricate special effects and soaring music and dramatic spectacle, feel as though we were seeing an almost impossible elevation of the potential size and scope of movies. Here was a rich, dense, sprawling series of films that thundered like myths, that were breathtaking in their realization of some pretty huge ambitions. Sure, they were massive corporate projects that earned lots of people millions of dollars, but to the regular moviegoer they were feats that proved the majesty of the movies, the potential to tell enthralling stories that also played like art. And so it’s hugely disappointing, if not all that surprising, that Jackson’s first foray back into the land of Middle Earth, The Hobbit: An Unexpected Journey, is such a sullenly, basely commercial and junky affair, a movie that feels not crafted with Jackson’s seemingly divine inspiration but by the hands of studio executives. Perhaps the reason that Warner Bros. is forgoing the usual console video-game tie-ins for simple mobile games is because the damn movie already looks like a video game, and not a very fun one at that.

RELATED: ‘The Hobbit’ Trailer Needs to Get Out of the Shire

The Lord of the Rings series succeeded aesthetically because it was such an elegant, painting-like wonder to behold. The textures and palettes all had the look of a particularly vibrant illustrated story book, the kind of immersive vision that exists somewhere between imagination and the real world. For The Hobbit, though, Jackson chose to film at a high frame rate and with Real 3D technology in mind — because 3D movies are doing well these days and, hell, doesn’t hurt that the tickets cost more — but the results are frequently hideous. Those among us who have bought shiny new flatscreen TVs over the past few years are likely familiar with the dreaded “Soap Opera Effect,” which turns what should be stunning, glossy images into cheap-looking messes, all strange movement and lighting, like any network soap or cheap British show. (Think Children of Men looking like Torchwood.) It’s the problem of technology over-thinking or over-performing, and it is on startling, gruesome display in The Hobbit. When you’re wearing the 3D glasses (and admittedly sitting a little off to the side), this hugely expensive movie looks like it was shot on a nice handheld digital camera on the cheap. Actors stand in strange contrast to the digital backgrounds behind them, motion looks too slick or unnatural. Gone are the somber vistas and rugged terrain, replaced by eye-aching shine and plastic-y smoothness. The most special effects-heavy sequences look very much like the non-playable parts of modern video games — the exposition bits that can amp up the graphics a bit because they don’t have to worry about the randomness of play, the stuff you see in the commercials, right before the “rated T for teen” part. I don’t know if I just had a bad projector or what, but I spent the bulk of this long movie distracted by how dreadful everything looked. With a few small exceptions — The Shire glows with lovely green, a mountain cave fight/chase sequence is bracingly rich — this is a dismally unattractive movie, featuring too many shots that I’m sure were lovely at some point but are too often ruined and chintzified by the terrible technology monster.

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So on its aesthetic merits, The Hobbit comes up more than short. The trouble is, it’s not rescued by many narrative successes. Jackson has taken largely from the first third of J.R.R. Tolkien‘s novel — about an expedition to reclaim a lost dwarf kingdom from a dragon — but he’s also added in some elements found in appendices detailing an expanded universe that Tolkien included in an edition of The Lord of the Rings. This is partly to flesh out the story as Jackson believes Tolkien meant it to be, but it’s also meant to satisfy the needs of a supersize film trilogy based on one mere book. And so we get several pointless and uninteresting diversions, mostly about dwarves and their bitter enemies the orcs, that read exactly like the filler they are. Jackson is trying to flesh out dwarf mythology, because we spend so much of our time with these little guys, but it feels tediously synthetic, as if there are two movies competing for attention with neither one getting its due. We go to the goblin caves of The Hobbit and then, upon deliverance from that dark place, are thrust right into some kind of honor-and-revenge-based conflict with a snarling, giant, one-armed orc. It’s all very crowded and strangely hurried for a movie that, all told, takes its sweet time.

RELATED: No One Likes Peter Jackson’s New ‘Hobbit’ Footage

I suspect that another of Jackson’s reasons for including all this extra dramatic battling is that, on its own, The Hobbit is something of a children’s book. We’ve got wacky, food-crazed dwarves, a mean old dragon, and a funny little guy to take us along on the journey. Jackson doesn’t deny his movie the kiddie flourishes — there’s snot humor and butt jokes and lots of other goofy stuff involving some trolls, plus two little musical numbers involving all the dwarves — but he then tries to complement them with the big, booming faith and honor stuff and it never properly congeals. One moment we’re on a sprightly children’s adventure, the next we’re talking in big fashion about all that warlike serious business. It’s a discordant mix, and I’d imagine it will leave both kids and adults out in the cold.

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The film is not without its bright spots, rare as they may be. Ian McKellen is a feisty, spirited, mysterious Gandalf as ever before, and Martin Freeman nicely and genially projects everyday hobbit-ness, even if he’s a tad underused in the film. (Yeah, in the movie called The Hobbit, there’s barely any time to focus on the darn Hobbit.) Cate Blanchett turns up once more as the ethereal elf Galadriel, lending the movie a cool classiness and a welcome dose of feminine energy. And, of course, we’re back, for one mesmerizing scene, with our beloved Gollum, so winningly and creepily played by Andy Serkis, and here yet another marvel of computer innovation. In some ways Gollum’s innate cartoonishness works better now than it did in the original trilogy, which is probably the only time that can be said of this movie. There are one or two moments in Gollum’s pivotal scene where he’s given a bit too much modern humor to play, but all told he’s the most welcome sight in the film. Maybe that’s just the newfound purist in me, yearning for the old days, but I suspect it has more to do with Gollum being the only genuinely realized character we’ve so far encountered in this new trio of films. Everyone else is a snoozy lesser version of someone else, especially the ridiculous bloodthirsty orc leader, who snarls and growls like something out of the Underworld movies. Sometimes, in the jumble of the The Hobbit‘s many cluttered and dull action scenes, the frantic blur looks like any sequence from one of those schlocky ’00s B-movies; all roughly hewn CGI clashing around nonsensically, with this orc fellow leading the charge.

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Despite all the technical advancements, if we can call them that, most moments in The Hobbit feel like Peter Jackson is sadly trying to make all those familiar LOTR elements work for him once more, without ever really being able to reignite the old flame. The supposedly awe-inducing visit to the elf city of Rivendell is a ho-hum experience in this new frame-rate-ruined world. A silly battle sequence involving a wizard, a silly Radagast the Brown, riding around pell-mell on a rabbit-drawn sled looks like an interstitial from late-era Super Mario. Even Elijah Wood, appearing briefly as Frodo, looks strange — a pale ghost of himself, as if stitched in from another movie by some forlorn and desperate hand. The film is inevitably resonant with memories of the original trilogy, and little about it can hold up to the comparison. There’s too much effort in the wrong places — action instead of story, technical tricks instead of actual design — and the constant rhythm of arbitrary event after arbitrary event becomes tiresome well before the film’s two hours and forty minutes have lurched to a halt. I’m sure there are kids who will like this wan, distracted effort — they might not yet have anything else to compare it to, depending on their age — but as a human who remembers what came before, I’m afraid The Hobbit left me nothing but frustrated, sad, and tired. Frustrated that these big-budget visionaries seem to consistently feel they have to taint their earlier masterpieces with techno-junk followups, sad that once magical lands now flicker cheap and garish in my head, and tired at the prospect of two more of these things. I exited the theater trying to remind myself that Attack of the Clones was way better than Phantom Menace and that Revenge of the Sith was better still. I then realized how depressing it was that I was making that comparison. Oh, Middle Earth. What has become of you?

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How “Life of Pi” animators visualized Ang Lee’s blank slate

LOS ANGELES (TheWrap.com) – “Life of Pi” is a movie that has the proverbial cast of thousands… of animals, that is. In one shot set on the ocean, there are 40,000 flying fish. In another one set on a floating island, there are 60,000 meerkats. And not one of them was living and breathing, of course.

“No real meerkats were used,” senior animation supervisor Erik-Jan De Boer told the audience at an effects-themed Q&A following TheWrap’s screening of the movie at the Landmark Theatre on Monday night. “Except of course we went to meerkat sanctuaries and zoos to shoot a lot of reference footage…”

“And the two of us watched every episode of ‘Meerkat Manor,’” interrupted visual effects supervisor Bill Westenhofer. “We were gonna watch one, but it gets addictive.”

That was about all the time these two had to indulge in reality TV during the long gestation and post-production of Pi, which establishes a new benchmark for awe-inspiring digital trickery – particularly in 3D, or “stereo,” as Westenhofer and De Boer refer to the effects-complicating process.

“In total,” De Boer told TheWrap’s editor-in-chief Sharon Waxman, “we animated 580 animals in about 290 shots for the movie, which includes a giraffe, a fox, a fish, and of course the hyena and orangutan.” Not to mention the little matter of the tiger, “Richard Parker,” whose appearances as one of the movie’s co-leads are 15 percent real, 85 percent digital.

That’s not including the aforementioned meerkat and flying fish extras, brought to life via a software program appropriately titled Massive. (If only it had been around in Cecil B. DeMille‘s day.)

“The flying fish sequence is where we start to take some artistic liberties, since Pi’s telling you a tale,” said Westenhofer. “Maybe there were a thousand flying fish in reality, or even a hundred, but you’re seeing his mind’s eye, which saw this multitude, so we have 40,000 in one particular spot. The Massive software is almost artificial intelligence, where you write a little program that’s the brain for each individual fish, and it decides if it’s going to hop out of the water, and how long it’s going to fly; if it sees someone in its path, it does avoidance.”

But before any of that was animated, there was the live-action filming that took place on a 70 meter-by-30 meter wave tank that director Ang Lee had specially built for the film. And there, said Westenhofer, “you had (star) Suraj Sharma on a boat with two guys in rubber rafts just chucking rubber fish at him as hard as they possibly can. It’s a good mixture of the low-tech and the high-tech.”

Of course, it wasn’t fish but previous experience with big cats that got Rhythm & Hues the assignment from Lee to go from lions to tigers and Pi. “He knew we had done the lion in the first Narnia movie. He asked, ‘Does a digital character look more or less real in 3D?’ We looked at each other and thought that was a pretty good question.”

As well as a leading one, since Lee had already made the decision at that point, in 2009, to shoot in 3D. “We took one of the shots and rendered it in stereo and said ‘Yeah, it gives it a little more presence and makes it more real.’” Good answer! “That was the start of our relationship with him.”

Although “Life of Pi” doesn’t exactly go for documentary-style realism, every effort was made to keep the tiger’s actions and reactions to what experts and trainers told them a creature would really do in those situations. Not having him spout any Aslan-style aphorisms was a nice start on that de-anthropomorphizing.

“We always strive for photorealism,” said De Boer – even when they’re working on a Narnia or Cats and Dogs. “Motion-wise we strive for perfect physicality and try to get that animal to behave as characteristically as possible – and then we always have to make them talk or dance or do something really weird, and the realism goes out the window and everybody knows that we were there. For me what was really cool about this movie is not only do we stick with the real animal but we also have to intercut it with a live-action animal, so that made the challenge for us that much bigger.”

Added Westenhofer, “We told the crew we wanted to work ourselves out of any recognition by making it look as real as possible.”

It was at least as big of a challenge, as far as Westenhofer was concerned, to make the digital waves match or amplify the real tank waves – and to create the film’s skies completely from scratch. “There’s not many films where we spend this much time on the water. I think ‘Old Man and the Sea’ harkens back! But even with ‘Titanic,’ you’ll see the water and then go inside.” For much of “Life of Pi,” “inside” amounts to a few furtive peeks under a tarp.

Hence what, on a project like this, becomes a fine line where digital effects providers are also, to some extent, taking over the role of cinematography and art direction. Going to work on filling up these blue-screen shots, the Rhythm & Hues people might well have been humming Bruce Springsteen’s “Empty Sky” to themselves.

“What I’m absolutely most proud of is with these visual effects is that we were given a blank slate for a lot of these shots,” Westenhofer told the audience. “We were given a boat in front of a blue screen, and it was the visual effects team who really were a lot of the creative innovators on the movie. Certainly it was Ang’s vision we were creating. But we’d start a shot, and though Ang absolutely knows what he wants, his communication is sometimes not as specific as you want. Instead of saying ‘I want a three-quarters cloudy sky with yellow over here and some blue,’ he’d say ‘I want a pensive sky.’

Or, ‘I want it to be operatic.’ So it would be our job to go translate that, and the team did a great job of supplying that.

“And Claudio Miranda did an awesome, awesome job on the cinematography, but a lot of the cinematography on the ocean is digital effects.”

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Aetna plans to join 15 exchanges under U.S. healthcare reform

NEW YORK (Reuters) – Aetna Inc, the third largest U.S. health insurer, said on Wednesday that by 2014 it expects to be part of about 15 healthcare exchanges being established under government reforms.

Aetna, one of the companies on the front lines of healthcare changes in the United States, told analysts and investors that it believes an increase in the number of customers from the new market places will likely contribute to its growth.

An estimated 30 million more people are expected to join the insured over the next decade because of the U.S. Patient Protection and Affordable Care Act of 2010. Millions of those will seek their health insurance through the exchanges.

States have until December 14 to decide whether they will participate in a state-based, federal or partnership exchange. About 18 states have said they will create their own state-based exchanges and 18 others plan to default to a federal exchange, according to the Kaiser Family Foundation, a non-profit health policy group.

The shift to exchanges is fundamentally changing the managed care business, Aetna executives said during Wednesday’s meeting with analysts and investors.

“More and more consumers are going to be buying their healthcare, even if the employer-sponsored system survives,” Chief Executive Officer Mark Bertolini said. “A lot of things that we do today are no longer necessary to the end buyer.”

Aetna said profits will be helped by cost controls and growth of carefully managed care organizations — networks of doctors that work together — and expansion in government programs, such as Medicare for the elderly and Medicaid for the poor, and Aetna’s pending purchase of Coventry Health Care Inc..

Aetna expects earnings of $ 5.40 per share in 2013, below analyst estimates of $ 5.52 per share according to ThomsonReuters I/B/E/S. It sees revenue growth of 9 percent in 2013.

Competitors such as UnitedHealth Group Inc and Cigna Corp also gave weaker than expected 2013 earnings outlooks during their year-end meetings with analysts and investors. Aetna shares rose about $ 1.96 to $ 46.43 in midday New York Stock Exchange trading.

Aetna, whose $ 5.6 billion acquisition of regional insurer Coventry is being looked at by antitrust regulators, said that it still expects the deal to close in the middle of next year. It said it has not run into any issues that are beyond its expectations.

Aetna Chief Financial Officer Joe Zubretsky said in an interview that Aetna had not factored the possibility of the United States going over the so-called fiscal cliff into its 2013 outlook. The “fiscal cliff” is a combination of mandatory spending cuts and tax increases that will go into effect at the beginning of next year if a deficit cutting resolution is not reached by U.S. lawmakers.

Aetna’s outlook is based on a cautious view of the economy and one in which unemployment remains at about 7.5 percent and interest rate returns remain extremely low, the company said.

“We’re pretty much assuming the cliff gets solved,” Zubretsky said.

But he said the company is concerned and guarded against the possibility that it is not resolved. If that does happen, he said U.S. employees poised to lose their jobs and health insurance may increase use of medical services, or Aetna’s large employer business may decrease as companies cut back on employees, both of which would likely hurt profits.

(Editing by Bill Berkrot and Grant McCool)

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Public's response saved lives in rampage

Citizens' coolheadedness and individual preparation for coping with gunfire in public settings may have curtailed the casualty count from Tuesday's shooting at a Portland, Ore., shopping mall, law officers suggested on the day after the tragedy.

Two people died and one was critically wounded before the shooter, 22-year-old Jacob Tyler Roberts of Portland, killed himself a few minutes after running into the food court at the Clackamas Town Center mall. Officials say Mr. Roberts, wearing camouflage and a white hockey mask, had methodically fired "multiple" rounds from an assault-style rifle at random shoppers.

Most of the 10,000 Christmas shoppers at the mall appeared nearly as ready and able as police to deal with a gunman appearing suddenly in their midst, Clackamas County Sheriff Craig Roberts said on Wednesday.

"Many people have asked me why there were so few victims during this incident," said Sheriff Roberts. He listed the fact that Mr. Roberts's AR-15 semiautomatic rifle intermittently jammed and noted a well-practiced mall lockdown procedure. But he also credited "10,000 people in the mall who at one time kept a level head, got themselves out of the mall, helped others get out, secured themselves in stores.… It was really about a whole group of people coming together to make a difference."

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Law officers said during a Wednesday press conference that they did not know whether any member of the public carrying a concealed weapon had counterattacked Roberts. But they said they are certain that Roberts died by his own hand after fleeing down a stairwell from the mall's upper level.

The death rate from mass shootings has ticked up slightly in recent years, even as deaths in single-victim incidents have decreased, according to a recent analysis of FBI crime data by the Huffington Post. The worst recent mass shooting came in July in Aurora, Colo., where a gunman killed 12 people and injured 58 during a midnight screening of a new "Batman" movie.

Gun-control advocates seized on the mall shooting as a possible result of the expiration in 2004 of a national ban on assault weapons.

"Santa Claus could have been shot in the mall," said Penny Okamoto, executive director of Ceasefire Oregon, in an interview with the Portland Tribune. "If you're sick of this, you should call your legislators to tell them to fix the laws so that assault weapons don't end up in the hands of felons."

Many versions of the AR-15 were banned under the assault weapons law, but it's not known if the gun used in the Clackamas mall shooting was one of them.

Police said Roberts had no criminal record and had stolen the AR-15 from "someone he knew."

Does the collected response by shoppers at the Clackamas Town Center indicate that Americans are becoming less daunted by senseless violence and, perhaps, better ready to react? Those who back broad gun rights under the Constitution's Second Amendment suggest a shift may be under way in people's readiness to respond.

In blocking Illinois's ban on concealed weapons, the last such law in the nation, Seventh US Circuit Court of Appeals Judge Richard Posner on Tuesday implied that self-defense readiness in public is not only protected by the US Constitution, but may be good social policy. An awareness "that many law-abiding citizens are walking the streets armed may make criminals timid," he wrote in his ruling.

"As far as a social shift, I think people are getting more intelligent and appropriate in their reactions to shooters," says Dave Kopel, research director at the Independence Institute, a libertarian-leaning think tank in Golden, Colo. "Police training has changed in significant ways since the Columbine [High School] shooting [in 1999], where they no longer wait for the SWAT team to arrive but go in immediately with … the army they have. There's also an awareness [among police and the public] that if you're trying to stop a gangster from robbing a liquor store, you may have a [heck] of a fight on your hands, but that these publicity-seeking guys with mental illness, they basically crumble at first opposition."

The upshot, says Mr. Kopel: "Lying down and cowering doesn't seem to work very well, so law enforcement has gotten smarter and civilians have gotten smarter."

In Clackamas County, Sheriff Roberts said local law-enforcement personnel had trained earlier this year for a shooting scenario at Clackamas Town Center, an exercise that involved both police and retailers. On Tuesday, arriving police, in keeping with evolving police tactics nationwide, formed small teams and quickly entered the mall to pursue the shooter. Police could not say Wednesday whether any officers saw the shooter before he killed himself.

Dennis Curtis, the mall's general manager, noted that police officers told him that they were amazed "how many stores were secured and people were locked in place" upon entering the mall to look for the shooter.

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Corruption probe shrouds Quebec in new darkness

MONTREAL (Reuters) – Half a century ago, a new crop of Quebec leaders sparked the so-called Quiet Revolution to eradicate the “Great Darkness” – decades of corruption that kept Canada‘s French-speaking province under the dominance of one party and the Catholic church.

The revolution’s reforms, including cleaning up the way lawmakers were elected and secularizing the education system, seemed to work, paving the way for decades of growth, progress and prominence as Canada emerged as a model of democracy.

Fifty years later, a public inquiry into corruption and government bid-rigging suggests the province’s politics are not as clean as Quebecers had hoped or believed.

Since May, when the inquiry opened in Montreal, Canadians have been getting daily doses of revelations of fraud through live broadcasts on French-language television stations. Corruption involving the Mafia, construction bosses and politicians, the inquiry has shown, drove up the average building cost of municipal contracts by more than 30 percent in Montreal, Canada’s second-largest city.

Last month, Montreal Mayor Gerald Tremblay resigned as did the mayor of nearby Laval, Gilles Vaillancourt. Both denied doing anything wrong, but said they could not govern amid the accusations of corruption involving rigging of municipal contracts, kickbacks from the contracts and illegal financing of elections.

Tremblay has not been charged by police. Vaillancourt’s homes and offices have been raided several times by Quebec’s anti-corruption squad, which operates independently of the inquiry, but no charges have been filed against him either. Police said the raids were part of an investigation but they would not release further details.

“Quebecers lived for several years under the impression that they had found the right formula, that their parties were clean,” said Pierre Martin, political science professor at the University of Montreal. Now, he said, “people at all levels are fed up.”

The inquiry must submit its final report to the Quebec government by next October. It has exposed practices worthy of a Hollywood noir thriller – a mob boss stuffing his socks with money, rigged construction contracts, call girls offered as gifts, and a party fundraiser with so much cash he could not close the door of his safe.

“Even though we are in the early days, what is emerging is a pretty troubling portrait of the way public contracts were awarded,” said Antonia Maioni, director of the McGill Institute for the Study of Canada in Montreal.

Quebec’s Liberals, the force behind the Quiet Revolution, launched the inquiry as rumors of corruption swirled. The government then called an election for September, a year ahead of schedule, in what was seen as an attempt to stop damaging testimony hurting its popularity.

The tactic did not help. Jean Charest’s Liberals lost to the Parti Quebecois, whose ultimate aim is to take the French-speaking province, the size of Western Europe, out of Canada.

‘IT WASN’T COMPLICATED’

According to allegations at the inquiry, the corruption helped three main entities: the construction bosses who colluded to bid on contracts, the Montreal Mafia dons who swooped in for their share, and the municipal politicians who received kickbacks to finance campaigns.

In Quebec, the Mafia has been dominated by the Rizzuto family, with tentacles to the rest of Canada and crime families in New York and abroad. But recently the syndicate has been facing challenges from other crime groups in Montreal, according to the Toronto-based Mafia analyst and author Antonio Nicaso.

The reputed godfather of the syndicate, Vito Rizzuto, has been subpoenaed to appear before the commission, but the date for his testimony has not been set.

The hearings have zeroed in on four construction bosses and how their companies worked with the Mafia, bribed municipal engineers and provided funds for mayoralty campaigns in Montreal, the business capital for Quebec’s 8 million people.

“It’s not good for the economy,” said Martin. “It’s not good for any kind of legitimate business that tries to enter into any kind of long-term relationship with the public sector.”

Quebec’s anti-corruption squad has arrested 35 people so far this year, staging well-publicized raids on mayoral offices and on construction and engineering companies. The squad has arrested civil servants and owners of construction companies, among others.

“I now must suffer an unbearable injustice,” Tremblay said in a somber resignation speech earlier this month after a decade as mayor of Montreal, saying he could not continue in office because the allegations of corruption were causing a paralysis at City Hall.

Some of the most explosive allegations at the inquiry, headed by Quebec Superior Court Justice France Charbonneau, came from Lino Zambito, owner of a now bankrupt construction company, and from a top worker for Tremblay’s political party, Union Montreal.

Zambito, who is seen as one of the smaller players and who also faces fraud charges, described a system of collusion between organized crime, business cartels and corrupt civil servants, with payments made according to a predetermined formula.

“The entrepreneurs made money, and there was an amount that was due to the Mafia,” Zambito told the inquiry. “It wasn’t complicated.”

Zambito said the Mafia got 2.5 percent of the value of a contract, 3 percent went to Union Montreal and 1 percent to the engineer tasked with inflating contract prices.

Tremblay did not respond to emails requesting comment on the allegations of corruption at city hall.

A former party organizer, Martin Dumont, alleged the mayor was aware of double bookkeeping used to hide illegal funding during a 2004 election.

Dumont said the mayor walked out of the room during a meeting that explained the double bookkeeping system, saying he did not want to know anything about it.

Dumont also described how he was called into the office of a fundraiser for Union Montreal to help close the door of a safe because it was too full of money.

“I think it was the largest amount I’d ever seen in my life,” Dumont said at the inquiry.

GOLF, HOCKEY, ESCORTS

The inquiry also saw videos linking construction company players with Mafia bosses. In one police surveillance video, a Mafia boss was seen stuffing cash into his socks.

A retired city of Montreal engineer, Gilles Surprenant, described how he first accepted a bribe in the late 1980s after being “intimidated” by a construction company owner. Over the years he said he accepted over $ 700,000 from the owners in return for inflating the price of the contracts.

Another retired engineer, Luc Leclerc, admitted to bagging half a million dollars for the same service. He said the system was well-known to many at city hall and simply part of the “business culture” in Montreal. He also got gifts and paid golf trips to the Caribbean with other businessmen and Mafia bosses.

Gilles Vezina, who is currently suspended from his job as a city engineer, concurred.

“It was part of our business relationships to get advantages like golf, hockey, Christmas gifts” from construction bosses, he told the inquiry in mid-November.

The gifts didn’t stop there. Vezina said he was twice offered the services of prostitutes from different construction bosses in the 1980s or early 1990s, which he said he refused.

The accusations are jarring for a country that prides itself on being one of the least corrupt places in the world, according to corruption watchdog Transparency International. But experts say corruption in Montreal was something of an open secret.

“The alarm signals have been going off here for 20 years and no one has done anything,” said Andre Cedilot, a former journalist who co-wrote a book on the Canadian Mafia.

Quebec’s new government has introduced legislation tasking the province’s securities regulator with vetting businesses vying for public contracts and allowing it to block companies that do not measure up.

Anti-corruption activist Jonathan Brun was not optimistic.

“You’ve got to use modern technology,” said Brun, a co-founder of Quebec Ouvert, a group that wants to make all information about contracts freely available rather than asking regulators to oversee individual companies. “You’ve got to change the entire system if you really want to fight corruption.”

(Writing by Russ Blinch; Editing by Janet Guttsman, Mary Milliken and Prudence Crowther)

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Lawsuit claims A&E’s ‘Storage Wars’ show is rigged

LOS ANGELES (AP) — Some of the valuables found hidden in abandoned lockers on A&E’s “Storage Wars” have been added by producers to deceive viewers, a former cast member of the show claims in a lawsuit filed Tuesday.

David Hester‘s suit claims producers have added a BMW Mini and newspapers chronicling Elvis Presley‘s death to lockers in order to build drama for the show and that his complaints about the practices led to his firing.

Hester is seeking more than $ 750,000 in his wrongful termination, breach of contract and unfair business practices lawsuit. A&E Television Network declined comment, citing the pending lawsuit.

“Storage Wars” follows buyers who bid for abandoned storage lockers hoping to find valuables tucked inside.

“A&E regularly plants valuable items or memorabilia,” the lawsuit states. Hester’s suit claims he was fired from participating in the series’ fourth season after expressing concerns that manipulating the storage lockers for the sake of the show was illegal.

He claims that producers stopped adding items to his units after his initial complaints but continued the practice for other series participants. The lawsuit alleges entire units have been staged and the practice may violate a federal law intended to prevent viewers from being deceived when watching a show involving intellectual skills.

“Storage Wars” depicts buyers having only a few moments to look into an abandoned unit before deciding on whether to bid on it at auction. The lawsuit claims some of the auction footage on the show is staged.

Hester, known as “The Mogul” on the show, has been buying abandoned storage units and re-selling their contents for 26 years, according to the suit.

Nielsen Co. has ranked “Storage Wars” among cable television’s top-ranked shows several times since its 2010 debut.

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