At CES, Panasonic leads with Viera smart TVs

Though Panasonic's CES press conference was short, it featured a long lineup of new TVs.

(Credit:
CNET)

LAS VEGAS--It was short and sweet, and if you blinked, you might have missed it. We're talking about Panasonic's press conference at CES today.

The star of the show, unsurprisingly, was Panasonic's 2013 line of Viera TVs. But the consumer electronics giant also showed off a range of other new products, from mid-range LCD TVs, to new Blu-Ray players, to Bluetooth speakers, to a range of micro home stereos, and finally a set of bone-conducting headphones.

It may not have been the shortest press conference of the day (Lexus called it quits at 13 minutes), but before anyone could settle in, the show was over, and Panasonic's executives and their guest speakers were saying thank you and inviting the standing room-only crowd to come by and visit the company's booth.

Here's the highlights of what Panasonic showed off today, which unsurprisingly, was TV-heavy:

• Smart TVs: The star of the show was clearly Panasonic's 2013 line of smart TVs. Starting with the DT60 line, which will come in 55-inch (the TC-L55DT60) and 60-inch (the TC-L60DT60) sizes, these are smart TVs feature My Home Screen, a new offering that lets every individual user in a home make their own personal home screen. Another offering of the DT60 line is Swipe & Share 2.0, which allows users to tap their NFC smartphone (sorry, iPhone owners) against their TV to share content. There's also Voice Interaction/Guidance, which gives users the ability to control the TV by speaking commands into their Panasonic remote or smartphone. Finally, there's three HDMI ports and three USB ports for enhanced connectivity, and it's all powered by a Dual Core processor with a Hexa Processing Engine. These TVs should hit the market in Spring 2013, with pricing yet to be announced.

New plasma TVs.

(Credit:
CNET)

• The TC plasma TV line. Starting with the flagship TC-PZT60 series (which comes in 55- and 65-inch models), these high-end sets offer "Beyond the Reference" image quality, and a brand-new Studio Master panel featuring Panasonic's thinnest-ever gas layer, which it promises will get rid of double and dim images. These fancy TVs also have a new red phosphor, the company's fastest-ever switching, THX certification in both 2D and 3D, and an associated boost in 3D performance.

With three sizes (55-, 60-, and 65-inches), the TC-PVT60 series is the successor to the VT50 series, and boasts THX certification and improved motion resolution over the 2012 version.

The TC-PST60 series, Panasonic's lowest-price 3D-capable plasma sets, comes in four sizes (50-, 550, 60-, and 65-inches) has an Infinite Black Pro panel. It also comes with two pairs of active 3D glasses.

Finally, there's the 1080p, non-3D TC-PS60 series, which comes in 42-, 50-, 55-, 60-, ad 65-inch sizes) Panasonic's 1080p non-3D series, and the 42- and 50-inch TC-PX60 series, which appears to be a clone of the disappointing 2012 X5 series.

• Its largest LCD TVs ever, including the flagship, the WT60 line: There are two sizes to choose from in Panasonic's WT60 line, the 47-inch TC-L47WT60 and the 55-inch TC-L55WT60. The sets add local dimming to last year's WT50 line, and the WT60's Clear Panel Pro is designed to enhance picture quality, as will a new advanced ISFccc Calibration Mode. Like the DT60 line, The WT60 models offer Share & Swipe 2.0, as well as Voice Interaction/Guidance. Panasonic went minimalist with the WT60 line, with features a clear pedestal and an elegant metal bezel.

• Mid-range E-series LCDs. This line includes the 50- and 60-inch ET60; the 42-, 50-, 58-, and 65-inch E60; and the entry-level 39- and 50-inch EM60. These lower-priced TVs nonetheless come with a wide range of features, including Swipe & Share 2.0 and Voice Interaction/Guidance. There are three HDMI and two USB ports, and thanks to Panasonic's Smart TV Alliance affiliation, both the ET60 and E60 offer My Home Screen. the EM60 may not have those higher-end features, but it does have a "media player" that comes with two HDMI ports and a single USB connection. The E series will be available in Spring 2013, with pricing yet to be announced.

• New Blu-Ray players, including high-end models with Miracast. All told, there are four new models, two featuring 3D (the DMP-BDT330 and the DMP-BDT230) and two 2D sets (the DMP-BDT80 and the DMP-BD79). All except the latter offer built-in Wi-Fi.

Panasonic's 3D Blu-Ray players feature a full Viera Connect collection of streaming-media services, and 2D-3D conversion, as well as a Web browser. Each model supports Miracast, which the company calls Display Mirroring, a feature that lets users send photos, music, and videos from compatible
Android mobile devices (version 4.2 and higher) to their TVs.

The 2D models have a more basic streaming-media package that comes with Netflix, Hulu Plus, Amazon Instant, Vudu, CinemaNow, and YouTube. The 2013 line retains 2012's DMP-BDT500 and DMP-BBT01. All the players should be on sale next month, but no pricing has been announced.

Panasonic's new line of micro home stereos

(Credit:
Sarah Tew/CNET)

• Micro home stereos. Panasonic unveiled six new models of these audio systems, essentially a full reset of its HC home audio line. That includes the introduction of the SC-HC58, SC-HC38, and SC-HC28. Aimed at
iPhone 5 or
iPad 4 users, the SC-HC28 relies on a Lightning dock, but also has an external USB port for hard connectivity, and the SC-HC38 offers Bluetooth connectivity. The SC-HC58 also includes AirPlay connectivity. Each unit has dual passive radiators, which means heavy bass on the low end of the frequency spectrum.

The SC-NE1, SC-NE3, and SC-NE5 systems break new ground for Panasonic's NE (Network Era) line of stereo systems, with "curved aero stream ports" that are said to improve airflow routing and stop "noise friction" from escaping. These models also offer the option to stream wireless music via DLNA, Bluetooth, or AirPlay in conjunction with Panasonic's Music Streaming app, a hub that pairs with various devices. Each of the NE series speakers come with a small Bamboo Cone Speaker that builds in a 3-inch stroke sub, paired with 1-inch tweeters for superior noise distribution.

All six speaker models will hit store shelves in March, but pricing has yet to be announced.

Panasonic's new bone-conducting headphones.

(Credit:
Sarah Tew/CNET)

• Bone-conducting headphones. Thinking about anyone who wants to listen to quality tunes while in motion, Panasonic unveiled its RP-BTGS10 wireless headphones, which take a unique approach to delivering audio: sending it via your cheekbones. The set rests on top of a user's head and reach down to the front of their ear canal, leaving their ears free to hear ambient noise. The headphones rely on Bluetooth for access to audio from smartphones and other devices.
The Panasonic RP-BTGS10 will be available in several colors this Fall, but no price has been announced.

• A Bluetooth speaker for tablets. Panasonic's new SC-NP10 Bluetooth speaker was built with devices like iPads and movie-watching in mind, though it does work with other devices. It features "Near Field Stereo Sound," which is designed to make audio sound good no matter how close you are to the speaker. Its Bluetooth Re-Master feature is meant to bring back frequencies lost by Bluetooth transmission. And it has a 3.13-inch subwoofer. The speaker should hit the market in April, but no price has been announced.

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Newtown seen as factor in Ala. teen's bomb plot

PHENIX CITY, Ala. An Alabama teenager teen who described himself as a white supremacist made journal entries about a plot to bomb classmates three days after the Newtown school massacre and began building small homemade explosives, a sheriff said Monday.

Russell County Sheriff Heath Taylor told The Associated Press that he believed the shooting at Sandy Hook Elementary was a factor because the first date in the boy's journal describing the plan was Dec. 17 — three days after the Connecticut killings.

Seventeen-year-old Derek Shrout is charged with attempted assault after authorities say he planned to use homemade explosives to attack fellow students at Russell County High School.

Taylor said the boy told investigators that he's a white supremacist and five of the six students he named in his journal are black. The journal was found by a teacher, who turned it over to authorities.

A search of Shrout's home found about 25 small tobacco cans and two larger tins, all with holes drilled in them and containing pellets similar to BB's, reported CBS affiliate WRBL. Taylor said all they needed were black powder and fuses to become explosives. The journal also allegedly mentioned using firearms. The sheriff said Shrout's father owned a few household weapons, like a hunting rifle, a shotgun and a handgun.

"He just talks about some students, he specifically named six students and one faculty member and he talked about weapons and the amounts of ammunition for each weapon that he would use if he attacked the school," Taylor said.

The sheriff said he didn't believe the teen's initial claim that the journal was a work of fiction.

"When you go to his house and you start finding the actual devices that he talked about being made, no, it's not fiction anymore," Taylor said. "Those devices were — all they needed was the black powder and the fuse — he had put a lot of time and thought into that."

The teen, who is thin and wears glasses, said little during an initial court appearance Monday. District Judge David Johnson set bond at $75,000 and the teen's attorney said the family expected to post it by the end of the day for his release.

The judge ordered the teen not to contact anyone at his school, students or teachers, and not to use the Internet without parental supervision.

His attorney, Jeremy Armstrong, declined to discuss specifics of the case, but he did say that the talk of the case he has heard so far was "blown a little out of proportion."

"Our position is that our client had no intention to harm anybody," he said.

Seale is about 80 miles east of Montgomery.

More from CBS affiliate WRBL:

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Accused Shooter Was 'Relaxed' After Massacre

Two veteran police officers broke down on the stand today during a preliminary hearing for accused movie theater gunman James Holmes, with one officer choking up when he described finding the body of a 6-year-old girl inside the theater.

Sgt. Gerald Jonsgaard needed a moment to compose himself as he described finding the little girl, Veronica Moser Sullivan, in the blood splattered theater in Aurora, Colo.

An officer felt for a pulse and thought Veronica was still alive, Jonsgaard said, but the officer then realized he was feeling his own pulse.

A preliminary hearing for Holmes began today in Colorado, with victims and families present. He is accused of killing 12 people and wounded dozens more in the movie theater massacre. One of Veronica's relatives likened attending the hearing to having to "face the devil."

The officers wiped away tears as they described the horror they found inside of theater nine.

Officer Justin Grizzle recounted seeing bodies lying motionless on the floor, surrounded by so much blood he nearly slipped and fell.

Grizzle, a former paramedic, says ambulances had not yet made it to the theater, so he began loading victims into his patrol car and driving to the hospital.

"I knew I needed to get them to the hospital now, " Grizzle said, tearing up. "I didn't want anyone else to die."

Arapahoe County Sheriff/AP Photo

Aurora, Colorado Gunman: Neuroscience PhD Student Watch Video

Grizzle drove six victims in four trips, saying that by the end there was so much blood in his patrol car he could hear it "sloshing around."

Click here for full coverage of the Aurora movie theater shooting.

An officer who took the stand earlier today described Holmes as "relaxed" and "detached" when police confronted him just moments after the shooting stopped.

The first two officers to testify today described responding to the theater and spotting Holmes standing by his car at the rear of the theater on July 20, 2012. He allegedly opened fire in the crowded theater during the midnight showing of "The Dark Knight Rises."

Officer Jason Oviatt said he first thought Holmes was a cop because he was wearing a gas mask and helmet, but as he got closer realized he was not an officer and held Holmes at gunpoint.

Throughout the search and arrest, Holes was extremely compliant, the officer said.

"He was very, very relaxed," Oviatt said. "These were not normal reactions to anything. He seemed very detached from it all."

Oviatt said Holmes had extremely dilated pupils and smelled badly when he was arrested.

Officer Aaron Blue testified that Holmes volunteered that he had four guns and that there were "improvised explosive devices" in his apartment and that they would go off if the police triggered them.

Holmes was dressed for the court hearing in a red jumpsuit and has brown hair and a full beard. He did not show any reaction when the officers pointed him out in the courtroom.

This is the most important court hearing in the case so far, essentially a mini-trial as prosecutors present witness testimony and evidence—some never before heard—to outline their case against the former neuroscience student.

The hearing at the Arapahoe County District Court in Centennial, Colo., could last all week. At the end, Judge William Sylvester will decide whether the case will go to trial.

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Five accused in India rape case charged in court

NEW DELHI (Reuters) - Five men accused of raping and murdering an Indian student were read the charges in a near-empty courtroom on Monday after the judge cleared out lawyers for bickering over whether the men deserved a defense.

The 23-year-old physiotherapy student died two weeks after being gang-raped and beaten on a moving bus in New Delhi, then thrown bleeding onto the street. Protests followed, along with a fierce public debate over police failure to stem rampant violence against women.

With popular anger simmering against the five men and a teenager accused in the case, most lawyers in the district where the trial will be held refuse to represent them.

Before the men arrived for a pre-trial hearing on Monday, heckling broke out in a chamber packed with jostling lawyers, journalists and members of the public after two of the lawyers, Manohar Lal Sharma and V. K. Anand, offered to defend the men.

"We are living in a modern society," declared Lal Sharma, defending his decision. "We all are educated. Every accused, including those in brutal offences like this, has the legal right ... to defend themselves."

One woman lawyer prodded V. K. Anand in the chest, saying: "I'll see how you can represent the accused."

Unable to restore order, presiding magistrate Namrita Aggarwal ordered everyone to leave except the prosecution, and set police to guard the entrance.

She said the trial would now be held behind closed doors because of the sensitivity of the case.

FACES COVERED

Reuters video images showed the men stepping out of a blue police van that brought them from Tihar jail and walking, their faces covered, through a metal detector into the South Delhi court building.

The court was across the street from the cinema where the victim watched a film before she was attacked on her way home.

Aggarwal gave the men copies of the charges, which include murder, rape and abduction, a prosecutor in the case told Reuters.

Police have conducted extensive interrogations and say they have recorded confessions, even though the men have no lawyers.

If the men, most of them from a slum neighborhood, cannot arrange a defense, the court will offer them legal aid before the trial begins.

Two of them, Vinay Sharma and Pawan Gupta, have offered to give evidence against the others - Mukesh Kumar, Ram Singh and Akshay Thakura - possibly in return for a lighter sentence.

Mohan, describing what he called a heinous crime, said: "The five accused persons deserve not less than the death penalty."

The case has sharpened long-standing anger against the government and police for a perceived failure to protect women.

A male friend who was assaulted with the woman on December 16 said on Friday that passers-by left her unclothed and bleeding in the street for almost an hour and that, when police arrived, they spent a long time arguing about where to take them.

The woman lived for two weeks after her attack, dying in a Singapore hospital where she had been taken for treatment.

FAST-TRACK COURT

Aggarwal said the next hearing would be on January 10. The case is due to move later to another, fast-track court set up since the woman was attacked to help reduce a backlog of sex crime cases in Delhi.

Legal experts say the lack of representation for the five men may give grounds for appeal if they are found guilty. Convictions in similar cases have often been overturned years later.

Some legal experts have also warned that previous attempts to fast-track justice in India in some cases led to imperfect convictions that were later challenged.

The sixth member of the group alleged to have lured the student and a male friend into the private bus is under 18 and will be tried in a separate juvenile court.

The government is aiming to lower the age at which teenagers can be tried as adults, acknowledging public anger that the boy will face a maximum three-year sentence.

The victim was identified by a British newspaper at the weekend but Reuters has opted not to name her.

Indian law generally prohibits the identification of victims of sex crimes. The law is intended to protect victims' privacy and keep them out of the glare of media in a country where the social stigma associated with rape can be devastating.

The dead woman's father repeated on Monday that he wanted her identified and said he would be happy to release a photograph of her.

"We don't want to hide her identity. There is no reason for that. The only condition is it should not be misused," he told Reuters.

He said he was confident the trial would be quick and reiterated a call that the perpetrators be hanged.

(Writing by Frank Jack Daniel; Editing by Robert Birsel and Tom Pfeiffer)

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Global regulator eases liquidity rules for banks

BASEL: The world's top banking regulatory body on Sunday eased the first global liquidity rules scheduled to start applying to banks in 2015 and aimed at improving their ability to survive financial crises.

The Basel Committee on Banking Supervision said at a press conference that it had widened the definition of the easy-to-sell assets that banks will have to hold to survive periods of stress.

The Basel III standards had been initially proposed in 2010 but banks and financial institutions have since lobbied intensely to make the rules more flexible and result in lower costs for the sector.

The details of the Liquidity Coverage Ratio (LCR), which was drafted to avoid a repeat of the 2008 banking crisis and unanimously endorsed on Sunday by the Basel group's top oversight body, give the banks a reprieve.

Its provisions include a much broader definition of the minimum assets every bank needs to hold, making it less costly for them to maintain the required buffer.

"The changes to the definition of the LCR, developed and agreed by the Basel Committee over the past two years, include an expansion in the range of assets eligible as HQLA (high quality liquid assets)," the committee said.

The new LCR's full details will also be fully implemented only in 2019, instead of 2015 as initially proposed.

"Specifically, the LCR will be introduced as planned on 1 January 2015, but the minimum requirement will begin at 60%, rising in equal annual steps of 10 percentage points to reach 100% on 1 January 2019," the Basel group announced.

Mervyn King, Chairman of the Basel group's top oversight body and Governor of the Bank of England, described the agreement announced Sunday as "a very significant achievement."

"For the first time in regulatory history, we have a truly global minimum standard for bank liquidity," said King.

The Basel Committee brings together representatives regulators from 27 nations.

"Importantly, introducing a phased timetable for the introduction of the LCR, and reaffirming that a bank's stock of liquid assets are usable in times of stress, will ensure that the new liquidity standard will in no way hinder the ability of the global banking system to finance a recovery," King said.

Stefan Ingves, chairman of the Basel Committee and of Sweden's Sveriges Riksbank, said the global regulator could now focus on the Net Stable Funding Ration, another pillar of the Basel III reforms.

"The completion of this work will allow the Basel Committee to turn its attention to refining the other component of the new global liquidity standards, the Net Stable Funding Ratio, which remains subject to an observation period ahead of its implementation in 2018," he said.

- AFP/jc

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Cisco at CES 2013: Join us Monday, 2 p.m. PT (live blog)

What does Cisco have in store for CES 2013? We'll find out starting at 2 p.m. PT (5 p.m. ET) on Monday, January 7, and CNET will be there to cover it live. We'll have a live blog full of news and analysis, unfolding as it happens.

You can tune in to the blog and video stream here:

CNET's live coverage of Cisco's 2013 CES press conference

Expect Cisco to have a lot to say about television on Monday. The company said last week that its efforts to redefine TV would take center stage at their Monday press conference.

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Kuwaitis defy government ban, stage protest

Kuwaiti opposition protestors take cover from tear gas fired by riot police during a demonstration demanding that the new parliament be dissolved and controversial legislation be scrapped, in Kuwait City, January 6, 2013. / YASSER AL-ZAYYAT/AFP/Getty Images

KUWAIT CITY Riot police in Kuwait have fired tear gas and stun grenades to disperse more than 1,000 anti-government protesters, defying strict rules limiting political demonstrations in the Gulf nation.

Kuwaiti authorities have said rallies must receive written permission as part of efforts to quell growing unrest over last month's parliamentary elections.

But organizers of Sunday's protest used social media to mobilize crowds.

Opposition groups have accused Kuwait's ruler of overstepping his powers by changing voting rules that appeared to favor government critics, which span from Islamist factions and pro-reform liberals.

They now seek to bring down the new parliament dominated by pro-government lawmakers.

Kuwaiti rights activist Mohammed Al-Humaidi says several protesters were arrested. There were no immediate reports of injuries.

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GOP Leader McConnell: 'Tax Issue Is Finished'

Jan 6, 2013 10:19am

                                                                                                            (Image Credit: ABC News)

Senate Republican Leader Mitch McConnell. R-Ky., Sunday said he will not accept any new revenue in future deals with congressional Democrats and President Obama.

“The tax issue is finished.  Over. Completed,” McConnell told me on “This Week.” “That’s behind us. Now the question is what are we going to do about the biggest problem confronting our country and that’s our spending addiction.

“We didn’t have this problem because we weren’t taxing enough,” McConnell added.

He blamed Obama and Democrats for waiting to resolve budget issues until the last minute.

Read a transcript of the full interview with Sen. Mitch McConnell HERE.

“Why we end up in these last-minute discussions is beyond me. We need to function,” McConnell said. “I mean, the House of Representatives, for example, passed a budget every year.  They’ve passed appropriation bills.

“The Senate Democratic majority and the president seem to like these last-minute deals.”

McConnell said that the biggest issue facing the country in the next year is the deficit and spending. And he predicted that the issue would occupy the congressional agenda in the first three months of the year, overtaking Obama’s other priorities, including gun control.

“But the biggest problem we have at the moment is spending and debt,” McConnell said. “That’s going to dominate the Congress between now and the end of March.  None of these issues, I think, will have the kind of priority that spending and debt are going to have over the next two or three months.”

On the expected nomination of former Sen. Chuck Hagel, R-Neb., as the secretary of Defense by Obama, McConnell said he would evaluate Hagel’s past statements before determining whether he could support his nomination in the Senate.

“I’m going to take a look at all the things that Chuck has said over the years and review that, and in terms of his qualifications to lead our nation’s military,” McConnell said. “The question we will be answering if he’s the nominee, is do his views make sense for that particular job?  I think he ought to be given a fair hearing, like any other nominee, and he will be.”

McConnell, who in 2008 praised Hagel for his clear voice and stature on foreign policy and national security, now says he will reserve judgment on his possible nomination until after a Senate confirmation hearing.

“I’m going to wait and see how the hearings go and see whether Chuck’s views square with the job he would be nominated to do,” he added.

Like “This Week” on Facebook here. You can also follow the show on Twitter here.

SHOWS: This Week

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Assad "peace plan" greeted with scorn by foes

BEIRUT (Reuters) - Syrian President Bashar al-Assad rejected peace talks with his enemies on Sunday in a defiant speech that his opponents described as a renewed declaration of war.

Although the speech was billed as the unveiling of a new peace plan, Assad offered no concessions and even appeared to harden many of his positions. He rallied Syrians for "a war to defend the nation" and disparaged the prospect of negotiations.

"We do not reject political dialogue ... but with whom should we hold a dialogue? With extremists who don't believe in any language but killing and terrorism?" Assad asked supporters who packed Damascus Opera House for his first speech since June.

"Should we speak to gangs recruited abroad that follow the orders of foreigners? Should we have official dialogue with a puppet made by the West, which has scripted its lines?"

It was his first public speech to an audience in six months. Since the last, rebels have reached the capital's outskirts.

George Sabra, vice president of the opposition National Coalition, told Reuters the peace plan Assad put at the heart of his speech did "not even deserve to be called an initiative":

"We should see it rather as a declaration that he will continue his war against the Syrian people," he said.

"The appropriate response is to continue to resist this unacceptable regime and for the Free Syrian Army to continue its work in liberating Syria until every inch of land is free."

The speech was seen by many as a response to U.N. mediator Lakhdar Brahimi, who has been meeting U.S. and Russian officials to try to narrow differences between Washington and Moscow over a peace plan. Brahimi also met Assad in Syria late last month.

"Lakhdar Brahimi must feel foolish after that Assad speech, where his diplomacy is dismissed as intolerable intervention," said Rana Kabbani, a Syrian analyst who supports the opposition.

The United States, European Union, Turkey and most Arab states have called on Assad to quit. Russia, which sells arms to and leases a naval base from Syria, says it backs a transition of power but that Assad's departure should not be a precondition for any talks.

REPETITIONS

Assad's foreign foes were scornful and dismissive of the speech: "His remarks are just repetitions of what he's said all along," said Turkish Foreign Minister Ahmet Davutoglu.

"It seems he's locked himself up in a room and only reads the intelligence reports presented to him."

British Foreign Secretary William Hague said "empty promises of reform fool no one". In a Twitter message, he added: "Death, violence and oppression engulfing Syria are of his own making."

EU foreign affairs chief Catherine Ashton said Brussels would "look carefully if there is anything new in the speech, but we maintain our position that Assad has to step aside and allow for a political transition".

The 47-year-old Assad, tall and mustachioed, in a business suit and tie, spoke confidently for about an hour before a crowd of cheering loyalists, who occasionally interrupted him to shout and applaud, at one point raising their fists and chanting: "With blood and soul we sacrifice for you, oh Bashar!"

At the end of the speech, supporters rushed to the stage, mobbing him and shouting: "God, Syria and Bashar is enough!" as a smiling president waved and was escorted from the hall past a backdrop showing a Syrian flag made of pictures of people whom state television described as "martyrs" of the conflict so far.

"We are now in a state of war in every sense of the word," Assad said in the speech, broadcast on Syrian state television. "This war targets Syria using a handful of Syrians and many foreigners. Thus, this is a war to defend the nation."

Independent media are largely barred from Damascus.

Giving the speech in the opera house, in a part of central Damascus that has been hit by rebel attacks, could be intended as a show of strength by a leader whose public appearances have grown rarer as the rebellion has gathered force.

Critics saw irony in the venue: "Assad speech appropriately made in Opera House!" tweeted Rami Khouri, a commentator for Lebanon's Daily Star newspaper. "It was operatic in its other-worldly fantasy, unrelated to realities outside the building."

DEATHS

The United Nations says 60,000 people have been killed in the civil war, the longest and bloodiest of the conflicts to emerge in two years of revolts in Arab states.

Rebels now control much of the north and east of the country, a crescent of suburbs on the outskirts of the capital and the main border crossings with Turkey in the north.

But Assad's forces are still firmly in control of most of the densely populated southwest, the main north-south highway and the Mediterranean coast. The army also holds military bases throughout the country from which its helicopters and jets can strike rebel-held areas with impunity, making it impossible for the insurgents to consolidate their grip on territory they hold.

Assad, an eye doctor, has ruled since 2000, succeeding his late father Hafez, who had seized power in a 1970 coup.

The rebels are drawn mainly from Syria's Sunni Muslim majority, while Assad, a member of the Alawite sect related to Shi'ite Islam, is supported by some members of religious minorities who fear retribution if he falls.

The conflict has heightened confrontation in the Middle East between Shi'ite Iran and Sunni Arab rulers, particularly those in the Gulf who are allied with the West against Tehran.

The plan unveiled in Sunday's speech could hardly have been better designed to ensure its rejection by the opposition. Among its proposals: rebels would first be expected to halt operations before the army would cease fire, a certain non-starter.

Assad also repeatedly emphasized rebel links to al Qaeda and other Sunni Islamist radicals. Washington has also labeled one of the main rebel groups a terrorist organization and says it is linked to the network founded by Osama bin Laden.

Diplomacy has been largely irrelevant so far in the conflict, with Moscow vetoing U.N. resolutions against Assad.

U.N. mediator Brahimi has been trying to bridge the gap, meeting senior U.S. and Russian officials to discuss his own peace proposal, which does not explicitly mention Assad's fate.

National Coalition spokesman Walid Bunni said Assad's speech appeared timed to prevent a breakthrough in those talks, by taking a position that could not be reconciled with diplomacy.

"The talk by Brahimi and others that there could be a type of political solution being worked out has prompted him to come out and tell the others 'I won't accept a solution'," Bunni said, adding that Assad feared any deal would mean his downfall.

(Additional reporting by Suleiman al-Khalidi in Amman, Gulsen Solaker in Ankara and Tim Castle in London; Writing by Peter Graff; Editing by Alastair Macdonald)

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IMF chief praises Malawi reforms for economic recovery

LILONGWE, Malawi: IMF chief Christine Lagarde on Saturday praised Malawi's President Joyce Banda for "bold" economic recovery reforms, saying the measures will lead to a turn-around despite their unpopularity.

"Notwithstanding the current hardships, many of my interlocutors were confident the ongoing reforms will turn the economy around, an optimism that I share," said Lagarde, wrapping up an official visit to Malawi.

During her trip, Lagarde has praised the reforms which she said had restored stability after Banda inherited a serious crisis characterised by foreign exchange shortages that crippled key imports such as fuel.

Banda has overseen the devaluation of the kwacha currency by 50 percent, the easing of foreign exchange restrictions, and the raising of fuel prices and cutting of subsidies since taking office last April.

Criticised at home for floating the currency under pressure from the International Monetary Fund, she has assured that "there will be no backtracking".

"I welcome government efforts to address unforeseen challenges through her continued commitment to economic reforms," Lagarde, the fund's managing director, said in a statement.

She said the country had already made "significant progress" in addressing serious imbalances that were hampering economic growth just a few months ago.

Lagarde said during meetings with Banda, she stressed the "need to stay the course, while putting in place social protection programmes to alleviate the impact of adjustment measures on the poorest households."

She said Malawi's recent economic situation has been difficult, adding that drought and lower than expected foreign exchange earnings had "dampened growth and contributed to a spike in inflation in 2012."

Earlier on Saturday Lagarde stressed the need for Malawi to diversify its economy, saying a reliance on agriculture left the country and its economic recovery vulnerable.

"Following these reforms, the economic wheels started spinning again. But progress is threatened anew by a slump in agriculture," she said, with the sector accounting 30 percent of GDP and tobacco nearly half of export earnings.

The fund has halved its 2012 growth forecast for the impoverished nation to around two percent but predicts a rate of 5.5 percent this year.

Private sector investment must be made easier and poor infrastructure in areas such as electricity and transport upgraded, she said, with Malawi scoring 129 out of 144 countries in the World Economic Forum's Global Competitiveness Index.

The IMF, one of the main backers of the country's reforms, gave Malawi a three-year $157 million loan package in June after ties had broken down amid a spree of global aid suspensions under president Bingu wa Mutharika.

In 2011, the global lender suspended a $79.4 million credit facility during the administration of the late leader who died last year.

Donors provide up to 40 percent of the development budget and salaries for nearly 170,000 civil servants.

Under Mutharika, relations with the IMF had become tense after he refused to devalue the currency as the global lender had advised, arguing it would trigger inflation and hurt the poor. In Malawi, 39 percent of the 13 million population live on less than a dollar a day.

Several key donors, including former colonial power Britain, suspended aid, citing concerns about growing authoritarian tendencies in Mutharika's government.

- AFP/de

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