Lady Gaga tweets some racy images before concert

BUENOS AIRES, Argentina (AP) — Lady Gaga's tweets were getting a lot of attention ahead of her Buenos Aires concert Friday night.

The Grammy-winning entertainer has more than 30 million followers on Twitter and that's where she shared a link this week to a short video showing her doing a striptease and fooling around in a bathtub with two other women.

She told her followers that it's a "surprise for you, almost ready for you to TASTE."

Then, in between concerts in Brazil and Argentina, she posted a picture Thursday on her Twitter page showing her wallowing in her underwear and impossibly high heels on top of the remains of what appears to be a strawberry shortcake.

"The real CAKE isn't HAVING what you want, it's DOING what you want," she tweeted.

Lady Gaga wore decidedly unglamorous baggy jeans and a blouse outside her Buenos Aires hotel Thursday as three burly bodyguards kept her fans at bay. Another pre-concert media event where she was supposed to be given "guest of honor" status by the city government Friday afternoon was cancelled.

After Argentina, she is scheduled to perform in Santiago, Chile; Lima, Peru; and Asuncion, Paraguay, before taking her "Born This Way Ball" tour to Africa, Europe and North America.

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Israel launches scores of airstrikes into Gaza

GAZA CITY, Gaza Strip (AP) — Israel bombarded the Hamas-ruled Gaza Strip with nearly 200 airstrikes early Saturday, the military said, widening a blistering assault on Gaza rocket operations to include the prime minister's headquarters, a police compound and a vast network of smuggling tunnels.

The new attacks, which Gaza officials say left 10 dead, followed an unprecedented rocket strike aimed at the contested holy city of Jerusalem that raised the stakes in Israel's violent confrontation with Palestinian militants and extended the battlefield.

Israeli aircraft also kept pounding their original targets, the militants' weapons storage facilities and underground rocket launching sites. They also went after rocket squads more aggressively. The military has called up thousands of reservists and massed troops, tanks and other armored vehicles along the border with Gaza, signaling a ground invasion could be imminent.

Militants, undaunted by the heavy damage the Israeli attacks have inflicted, have unleashed some 500 rockets against the Jewish state, including new, longer-range weapons turned for the first time this week against Jerusalem and the Tel Aviv heartland. Following those attacks, the military deployed an Iron Dome rocket defense battery in central Israel on Saturday. The system, devised precisely to deflect the Gaza rocket threat, was deployed two months earlier than planned, the Defense Ministry said.

Ten people, including eight militants, were killed and dozens were wounded in the various attacks early Saturday, Gaza health official Ashraf al-Kidra said. In all, 40 Palestinians including 13 civilians and three Israeli civilians have been killed since the Israeli operation began.

The violence has widened the instability gripping the Mideast. At the same time, revolts against entrenched regional regimes have opened up new possibilities for Hamas. Islamists across the Mideast have been strengthened, bringing newfound recognition to Hamas, shunned by the international community because of its refusal to recognize Israel and renounce violence.

A high-level Tunisian delegation, led by Foreign Minister Rafik Abdessalem, drove that point home with a visit to Gaza on Saturday. The foreign minister's first stop was the still-smoldering ruins of the three-story office building of Gaza's prime minister, Ismail Haniyeh of Hamas.

"Israel has to understand that there is an international law and it has to respect the international law to stop the aggression against the Palestinian people," Abdessalem told The Associated Press during a tour of Gaza's main hospital, Shifa, later Saturday. He said his country was doing whatever it can to promote a cease-fire, but did not elaborate.

It was the first official Tunisian visit since Hamas's violent 2007 takeover of the territory. Egypt's prime minister visited Friday and a Moroccan delegation is due on Sunday, following a landmark visit by Qatar's leader last month that implied political recognition.

Israel had been incrementally expanding its operation beyond military targets but before dawn on Saturday it ramped that up dramatically, hitting Hamas symbols of power. Israeli defense officials, speaking on condition of anonymity to discuss confidential decisions, said military chief Lt. Gen. Benny Gantz personally ordered the scope of the airstrikes to be increased.

Haniyeh's three-story office building was flattened by an airstrike that blew out windows in neighboring homes. He was not inside the building at the time.

The building's security chief said Hamas scored points despite Israel's military superiority.

"Hamas responded to the Zionist aggression and hit them in the depth of their land," he said, referring to rockets aimed Friday at Jerusalem and Tel Aviv.

Another airstrike brought down the three-story home of a Hamas commander in the Jebaliya refugee camp near Gaza City, critically wounding him and injuring other residents of the building, medics said.

Missiles smashed into two small security facilities and the massive Hamas police headquarters in Gaza City, setting off a huge blaze that engulfed nearby houses and civilian cars parked outside, the Interior Ministry reported. No one was inside the buildings.

The Interior Ministry said a government compound was also hit while devout Muslims streamed to the area for early morning prayers, although it did not report any casualties from that attack.

Air attacks knocked out five electricity transformers, cutting off power to more than 400,000 people in southern Gaza, according to the Gaza electricity distribution company. People switched on backup generators for limited electrical supplies.

In southern Gaza, aircraft went after underground tunnels militants use to smuggle in weapons and other contraband from Egypt, residents reported. A huge explosion in the area sent buildings shuddering in the Egyptian city of El-Arish, 45 kilometers (30 miles) away, an Associated Press correspondent there reported.

The Israeli military said more than 800 targets have been struck since the operation began.

The widened scope of targets brings the scale of fighting closer to that of the war the two groups waged four years ago. Hamas was badly bruised during that conflict, but has since restocked its arsenal with more and better weapons, and has been under pressure from smaller, more militant groups to prove its commitment to fighting Israel.

The attack aimed at Jerusalem on Friday and two strikes on metropolitan Tel Aviv showcased the militants' new capabilities, including a locally made rocket that appears to have taken Israeli defense officials by surprise. Both areas had remained outside the gunmen's reach before.

Just a few years ago, Palestinian rockets were limited to crude devices manufactured in Gaza. But in recent years, Israeli officials say, Hamas and other armed groups have smuggled in sophisticated, longer-range rockets from Iran and Libya.

Israeli leaders have threatened to widen the operation even further if the rocket fire doesn't halt. Foreign Minister Avigdor Lieberman said options included the possible assassination of Haniyeh, the prime minister.

Israeli Prime Minister Benjamin Netanyahu met in emergency session with Cabinet ministers Friday and they approved mobilizing up to 75,000 reservists, more than doubling the number authorized earlier this week. That would be the largest call-up in a decade. At a parking lot in central Israel, uniformed reservists waited to board buses. One prayed, covered in a Jewish prayer shawl.

Lt. Col. Avital Leibovich, a military spokeswoman, said 16,000 reservists were called to duty on Friday and others could soon follow.

She said no decision had been made on a ground offensive but all options are on the table.

President Barack Obama spoke separately to Israeli and Egyptian leaders Friday as the violence in Gaza intensified. In a conversation with Israeli Prime Minister Benjamin Netanyahu, he reiterated U.S. support for Israel's right to self-defense. To Egyptian President Mohammed Morsi, he praised Egypt's efforts to ease regional tensions.

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Teibel reported from Jerusalem. Associated Press writers Karin Laub in Gaza City and Matthew Daly in Washington contributed reporting.

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Despite Myanmar reforms, much remains to be done

YANGON, Myanmar (AP) — In the west, terrified villagers flee burning homes after an explosion of ethnic and religious violence. In the north, refugees from a civil war cower in chilly camps, desperately short on life's basic necessities. And in dank jails, hundreds of political prisoners languish behind bars, wondering when they'll ever be freed.

This is not the Myanmar that President Barack Obama will see when he becomes the first American head of state to visit this pagoda-studded country on Monday. He wants to encourage the stunning democratic transformation Myanmar has undergone since last year, but there are concerns his visit may be premature.

The nation's warp-speed revolution is fragile. Its nascent transition has already been bloody. And much unfinished business remains: from repealing harsh laws that helped silence a generation of pro-democracy dissidents, to overhauling a political power structure still tipped heavily in favor of army rule.

"If President Obama doesn't put his full weight behind further urgent reforms in Myanmar, this trip risks being an ill-timed presidential pat on the back for a regime that has looked the other way as violence rages, destroying villages and communities just in the last few weeks," said Suzanne Nossel, the U.S.-based director of Amnesty International.

White House officials cautioned Thursday that Obama's visit to Myanmar, also known as Burma, should not be viewed as a "victory celebration." They reiterated that urgent action is still needed, particularly on freeing political prisoners and ending the unrest in western Rakhine state.

"This is a moment when we believe the Burmese leaders have put their feet on the right path and that it's critical to us that we not miss the moment to influence them to keep going," said Danny Russel, Obama's top Asia adviser.

There is little doubt that the reforms in Myanmar have come quicker and gone farther than anyone here dared dream.

Just a few years ago, this was a place denigrated by Washington as an isolated "outpost of tyranny," a country led by a xenophobic clique of army officers so distrustful of the West that they rejected foreign aid even when Cyclone Nargis killed more than 100,000 people in 2008.

Even when the junta ceded power to an elected government early last year, few considered the prospect of real change. The vote, boycotted by the main opposition, was considered neither free nor fair, and the new president, Thein Sein, was a former general.

But Thein Sein's government surprised the world. It freed hundreds of political prisoners, though not all of them. It signed cease-fire deals with numerous rebel groups. It abolished a draconian system of media censorship. It revamped finance and investment laws. Aung San Suu Kyi — the longtime opposition leader who spent most of the last two decades as a prisoner in her own home — is now an elected lawmaker with an official voice in government.

Today, the consensus is the reforms are irreversible. But that doesn't mean "the future is necessarily bright," said Myanmar historian Thant Myint-U, the grandson of the late U.N. Secretary General U Thant.

The problem is "not with the political leadership at the top," he said, "but with the enormity of challenges facing this country after decades of war, repression, and international isolation."

Myanmar is a country where oxen still haul carts of wheat past simple houses made of bamboo and dried leaves, much like they did centuries ago. Its education and health systems are neglected, in tatters. And although the country exports electricity, its infrastructure is so poor and mismanagement so high that only about 25 percent of people living here have access to electricity.

The nation's best and brightest are abroad: A 1988 crackdown on democracy protesters forced a generation of skilled labor to flee. Refugees — hundreds of thousands in Thailand alone — continue to live in camps, still too uncertain to return.

Although Thein Sein's administration has been widely credited with beginning the monumental task of turning the ship of state around, it also has seen grave setbacks.

Chief among them: the collapse of a 17-year-old truce with ethnic Kachin rebels in the north. That triggered a wave of fighting that has driven more than 75,000 people from their homes. On Wednesday, Kachin rebels attacked a prison convoy, killing two convicts and injuring 14 others, state media reported.

In western Myanmar, another 110,000 people have been displaced in a separate conflict between the Buddhist Rakhine and the stateless Muslim Rohingya. Many Rohingya were born in Myanmar, but they are denied citizenship because the government considers them foreigners from neighboring Bangladesh.

The conflict has degenerated into an anti-Muslim campaign also targeting the Kaman minority.

"Please tell Obama that we want to go home," one woman pleaded this week in Sin Thet Maw, where she fled with 5,000 other ethnic Kaman Muslims after Buddhist mobs turned their neighborhood to ashes and forced them to flee on boats.

"We have no schools, no medicines, no toilets," the 48-year-old, Ohnmar Saw, said. "We need help, and nobody is helping us."

Although the crisis in the west goes back decades, it has been exacerbated — ironically — by the newfound right to freedom of expression the U.S. has pushed so long for. Racist rants against the Rohingya have appeared online with increasing frequency and viciousness. The government's lifting of a longstanding ban on protests has paved the way for massive anti-Muslim protests staged by Buddhist monks, bolstering nationwide antipathy toward Muslims and setting the stage for the latest spasm of violence in late October.

The "democratic opening has allowed for repressed voices ... both negative and positive, to emerge," said Aung Naing Oo of the Vahu Development Institute think-tank, who traveled back to his homeland for the first time this year after fleeing two decades before.

But the upside is clear: "Myanmar is no longer a dictatorship," he said.

Given the new democratic equation, solving the conflict in Rakhine state will be difficult because the Rohingya are a deeply unpopular cause that few politicians will defend — not Thein Sein, and not even Suu Kyi, whose party is looking toward elections due in 2015.

There is concern, too, that the U.S. can do little to help.

America's own interests — businesses are keen to tap into what is for them virgin territory rich in natural resources — are at risk of trumping human rights. And Obama's trip is also part of a broader effort to bolster U.S. influence in a region dominated by China.

Washington's decision to suspend sanctions this year has also dramatically diminished its leverage here, said Aung Din of the Washington-based U.S. Campaign for Burma, which has called on Obama to cancel his trip.

"The risk, without political and economic pressure, is that we will not see the process of democratic change moving forward," he said.

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Exclusive: Facebook offering e-retailers sales tracking tool
















SAN FRANCISCO (Reuters) – Facebook Inc wants more credit for making online cash registers ring.


Facebook will begin rolling out on Friday a new tool which will allow online retailers to track purchases by members of the social network who have viewed their ads.













The tool is the latest of the new advertising features Facebook is offering to convince marketers that steering advertising dollars to the company will deliver a payoff.


Facebook, with roughly 1 billion users, has faced a tough reception on Wall Street amid concerns about its slowing revenue growth.


“Measuring ad effectiveness and outcomes is absolutely crucial to all types of businesses and marketers,” said David Baser, a product manager for Facebook’s ads business who said the “conversion measurement” tool has been a top customer request for a long time.


The sales information that advertisers receive is anonymous, said Baser. “You would see the number of people who bought shoes,” he said, using the example of an online shoe retailer. But marketers would not be able to get information that could identify the people, he added.


The conversion tool is specifically designed for so-called direct response marketers, such as online retailers and travel websites that advertise with the goal of drumming up immediate sales rather than for longer-term brand-building.


Such advertisers have long flocked to Google Inc’s Web search engine, which can deliver ads to consumers at the exact moment they’re looking for information on a particular product.


But some analysts say there is room for Facebook to make inroads if it can demonstrate results.


“The path to purchase” is not as direct on Facebook as it is on Google’s search engine, said Debra Aho Williamson, an analyst with research firm eMarketer. But she said that providing information about customer sales conversion should help Facebook make a stronger case to online retailers.


“It lets marketers track the impact of a Facebook ad hours or days or even a week beyond when someone might have viewed the ad,” said Williamson. “That allows marketers to understand the impact of the Facebook ad on the ultimate purchase.”


Marketers will also have the option to aim their ads at segments of Facebook’s audience with similar attributes to consumers that have responded well to a particular ad in the past, Baser said.


Online retailer Fab.com, which has tested Facebook’s new service, was able to reduce its cost per new customer acquisition by 39 percent when it served ads to consumers deemed most likely to convert, Facebook said. Facebook defines a conversion as anything from a completed sale, to a consumer taking another desired action on a website, such as registering for a newsletter.


NEW OPPORTUNITIES


Shares of Facebook, which were priced at $ 38 a share in its May initial public offering, closed Thursday’s regular session at $ 22.17.


In recent months, Facebook has introduced a variety of new advertising capabilities and moved to broaden its appeal to various groups of advertisers.


Chief Operating Officer Sheryl Sandberg said in October that Facebook saw multi-billion revenue opportunities in each of four groups of advertisers: brand marketers, local businesses, app developers and direct response marketers.


Facebook does not disclose how much of its ad revenue, which totaled $ 1.09 billion in the third quarter, comes from each type of advertiser. Pivotal Research Group analyst Brian Wieser estimates that brand marketers and local businesses account for the bulk of Facebook’s current advertising revenue.


Earlier this year, Facebook introduced a similar conversion measurement service for big brand advertisers, such as auto manufacturers, partnering with data mining firm Datalogix to help connect the dots between consumer spending at brick-and-mortar and Facebook ads.


And Facebook has rolled out new marketing tools for local businesses such as restaurants and coffee shops, including a revamped online coupon service and simplified advertising capabilities known as promoted posts.


The new conversion measurement tool is launching in testing mode, but will be fully available by the end of the month, Facebook said.


(Reporting By Alexei Oreskovic; editing by Carol Bishopric)


Tech News Headlines – Yahoo! News



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Jason Mraz to make historic appearance in Myanmar

NASHVILLE, Tenn. (AP) — Jason Mraz will make history next month when he performs in Myanmar to raise awareness about human trafficking.

Mraz will headline a free outdoor concert on Dec. 16 at People's Square in Yangon, at the base of Shwedagon Pagoda.

The Grammy-winning singer-songwriter is believed to be the first international artist to perform an open-air concert in the country. The show includes local acts and is hosted by MTV EXIT, the music channel's initiative to raise awareness about human trafficking and exploitation.

"That's pretty exciting," Mraz said of the history involved, "and I'm going there with an enormous amount of gratitude and respect, and I hope we can actually make a difference. I hope it's also a testament to the songs. I've always wanted my songs to be about healing and self-empowerment, and if this is the way MTV is acknowledging that, then I am incredibly grateful."

The show, which will include local acts, will be broadcast on Myanmar national television and will air on MTV's international network in 2013. Mraz hosted a similar concert in the Philippines last year. He first became interested in the issue about four years ago when he attended the Freedom Awards, an annual salute to those working against human exploitation put on by the organization Free the Slaves.

"I thought this was something that was abolished when Abraham Lincoln signed the Emancipation Proclamation, but all it did is become hidden from our view," Mraz said in a phone interview from Zurich, Switzerland. "There was a recent estimate that there are about 27 million people enslaved on the planet, certainly due to hard economic times not just in the Western world but certainly in Third World countries. Humans as a commodity is a great way to run your business. So I signed on, lent my voice, lent my music to the cause."

Myanmar is opening itself to the world since a military junta ceded power to a new elected government last year. President Thein Sein's government has pushed the country toward democracy, and this Monday Barack Obama is scheduled to become the first sitting U.S. president to visit the country.

Mraz says there is concern predators will prey on the vulnerable in this time of great flux. The concert offers an opportunity to "educate, empower and engage." The 35-year-old singer says he plans to tailor his show to the message.

"I do curate a set list that I feel is going to be part of that educate, empower and engage (theme)," he said. "Obviously songs like 'I'm Yours,' 'I Won't Give Up' are great examples. Or '93 Million Miles' is a new one where it's about believing in yourself. And a lot of my songs are about that, about believing in yourself and really going for your dreams. Those are the kinds of songs I'll be playing at that show."

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MTV is a unit of Viacom Inc.

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott .

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Petraeus testifies on Benghazi attack

WASHINGTON (AP) — Ex-CIA Director David Petraeus (peh-TRAY'-uhs) has told Congress that references to militant groups Ansar al-Shariah and al-Qaida in the Islamic Maghreb were removed from the agency's draft talking points of what sparked the Sept. 11 attack on the U.S. Consulate in Libya.

A congressional staffer says Petraeus testified in a closed-door hearing Friday that the CIA's talking points did name those groups.

Petraeus told lawmakers he wasn't sure which agency replaced the groups' names with the word "extremist" in the final draft. But he said he allowed other agencies to alter the talking points as they saw fit without asking for final review, to get them out quickly.

The staffer wasn't authorized to discuss the hearing publicly and described Petraeus' testimony to The Associated Press on a condition of anonymity.

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Xi takes China's helm with many tough challenges

BEIJING (AP) — Long-anointed successor Xi Jinping assumed the leadership of China on Thursday as the ruling Communist Party confronts slower economic growth, a public clamor to end corruption and demands for change that threaten its hold on power.

The country's political elite named Xi to the top party post and unexpectedly put him in charge of the military too, after a weeklong party congress and months of divisive bargaining.

The appointments give him broad authority, but not the luxury of time. After decades of juggernaut growth, China sits on the cusp of global pre-eminence as the second largest economy and newest power, but it also has urgent domestic troubles that could frustrate its rise.

Problems that have long festered — from the sputtering economy to friction with the U.S. and territorial spats with Japan and other neighbors — have worsened in recent months as the leadership focused on the power transfer. Impatience has grown among entrepreneurs, others in the new middle class and migrant workers — all wired by social media and conditioned by two decades of rising living standards to expect better government, if not democracy.

All along, police have continued to harass and jail a lengthening list of political foes, dissidents, civil rights lawyers and labor activists. A 14-year-old Tibetan set himself on fire in western China on Thursday, in the latest of more than 70 self-immolations Tibetans have staged over the past 20 months in desperate protests against Chinese rule.

In his first address to the nation, Xi, a 59-year-old son of a revolutionary hero, acknowledged the lengthy agenda for what should be the first of two five-year terms in office. He promised to deliver better social services while making sure China stands tall in the world and the party continues to rule.

"Our responsibility now is to rally and lead the entire party and the people of all ethnic groups in China in taking over the historic baton and in making continued efforts to achieve the great renewal of the Chinese nation," a confident Xi said in nationally televised remarks in the Great Hall of the People.

He later said "we are not complacent, and we will never rest on our laurels" in confronting challenges — corruption chief among them.

By his side stood the six other newly appointed members of the Politburo Standing Committee: Li Keqiang, the presumptive premier and chief economic official; Vice Premier Zhang Dejiang; Shanghai party secretary Yu Zhengsheng; propaganda chief Liu Yunshan; Tianjin party secretary Zhang Gaoli; and Vice Premier Wang Qishan, once the leadership's top troubleshooter who will head the party's internal watchdog panel.

Xi gave no hint of new thinking to address the problems. The lack of specifics and the new leadership heavy with conservative technocrats deflated expectations for change in some quarters.

"We should be expecting more of the same, not some fundamental break from the past," said Dali Yang of the University of Chicago.

Fundamental for the leadership is to maintain the party's rule, he said. "They are not interested in introducing China's Gorbachev" — the Soviet leader whose reforms hastened the end of the Soviet Union — Yang said.

Many of the challenges Xi confronts are legacies of his predecessor, Hu Jintao. In addition to relinquishing his role as party chief, having reached the two-term maximum, Hu also stepped down from the party commission that oversees the military. The move is a break from the past in which exiting party leaders kept hold of the military portfolio for several years.

During Hu's 10 years in office, policies to open up China to trade and foreign investment begun by his predecessors gathered momentum, turning China into a manufacturing powerhouse and drawing tens of millions of rural migrants into cities. Easy credit fueled a building boom, the Beijing Olympics and the world's longest high-speed rail network. At the same time, Hu relied on an ever-larger security apparatus to suppress protests, even as demonstrations continued to rise.

"More and more citizens are beginning to awaken to their rights and they are constantly asking for political reform," said rights activist Hu Jia, who has previously been jailed for campaigning for AIDS patients and orphans. "The Communist Party does not have legitimacy. It is a party of dictatorship that uses violence to obtain political power. What we need now is for this country's people to have the right to choose who they are governed by."

Chief among the problems Xi and his team will have to tackle is the economy. Though Hu pledged more balanced development, inequality has risen and housing costs have soared. Over the past year, the economy has flagged, dragged down by anemic demand in Europe and the U.S. for Chinese products and an overhang from excessive lending for factories and infrastructure.

With state banks preferring to lend to state-run companies or not at all, private entrepreneurs have had to turn to unofficial money-lenders.

"The bank just asked me to wait," said Deng Mingxin, who runs a zipper factory with 10 employees in Jiangsu province. "Maybe it's because I didn't offer enough 'red envelopes'" — a reference to bribes.

The World Bank warns that without quick action, growth that fell to a three-year low of 7.4 percent in the latest quarter may fall to 5 percent by 2015 — a low rate for generating the employment and funding the social programs Beijing holds as key to keeping a lid on unrest. Analysts and Beijing's own advisers have said it needs to overhaul its strategy and nurture consumer spending and services to meet its pledge of doubling incomes by 2020.

"China will need a very different economy in the next decade," said Citigroup economist Minggao Shen.

In foreign policy, the U.S. and other partners are looking for reassurance that China's policy remains one of peaceful integration into the world community. Tensions have flared in recent months between China, Japan and the Philippines over contested islets in the East and South China Seas. Mistrust has also grown with the U.S. as it diverts more military and diplomatic resources to Asia in what Chinese leaders see as containment.

Fresh in office, Xi can ill-afford to bow to foreigners, crossing a nationalistic public and a military that may still be uncertain about his leadership.

"The leaders can't look like they are being soft on the U.S. or foreign policy because they will lose power in terms of people," said Robert Lawrence Kuhn, a business consultant and author of the book "How China's Leaders Think." Kuhn expects more tough rhetoric than action in the months ahead, but expects Xi's leadership to develop a more nuanced foreign policy as it consolidates its authority at home.

Of all the knotty long-term challenges, few threaten to derail China's march to a more prosperous society more than its rapidly aging society. Baby boomers whose labor manned the factories and construction sites are starting to retire. Meanwhile fewer Chinese are entering the workforce after a generation of family planning limits and higher incomes led to smaller families.

If left unchecked, the trend will further stress already pressed social security funds.

Scrapping the rule that limits many families to one child would help in the long run, and is being urged by experts. But the leadership for years has delayed change, in part because it sees smaller families and fewer births as having helped raise incomes overall.

"China has wasted some time and opportunities partly because its growth over the last 10 years was so spectacular," said Wang Feng, director of the Brookings-Tsinghua Center for Public Policy and an expert on China's demographics. "Now it no longer has that luxury."

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Associated Press writers Didi Tang, Gillian Wong, Alexa Olesen, Joe McDonald and Louise Watt and researchers Flora Ji and Zhao Liang contributed to this report.

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Erdrich wins her first National Book Award

NEW YORK (AP) — The National Book Awards honored both longtime writers and new authors, from Louise Erdrich for "The Round House" to Katherine Boo for her debut work, "Beyond the Beautiful Forevers."

Erdrich, 58, has been a published and highly regarded author for nearly 30 years but had never won a National Book Award until being cited Wednesday for her story, the second of a planned trilogy, about an Ojibwe boy and his quest to avenge his mother's rape. A clearly delighted and surprised Erdrich, who's part Ojibwe, spoke in her tribal tongue and then switched to English as she dedicated her fiction award to "the grace and endurance of native people."

The works of two other winners also centered on young boys — Boo's for nonfiction, and William Alexander's fantasy "Goblin Secrets," for young people's literature. David Ferry won for poetry.

Boo's book, set in a Mumbai slum, is the story of a boy and his harsh and illuminating education in the consequences of crime or perceived crime. The author, a Pulitzer Prize-winning journalist currently on staff with The New Yorker, said she was grateful for the chance to live in a world she "didn't know" and for the chance to tell the stories of those otherwise ignored. She praised a fellow nominee and fellow Pulitzer-winning reporter, the late Anthony Shadid, for also believing in stories of those without fame or power.

Boo was chosen from one of the strongest lists of nonfiction books in memory, from the fourth volume of Robert Caro's Lyndon Johnson series to Shadid's memoir "House of Stone." Finalists in fiction, which in recent years favored lesser known writers, included such established names as Dave Eggers and Junot Diaz. Publishers have been concerned that the National Book Awards have become too insular and are considering changes, including expanding the pool of judges beyond writers.

Winners, chosen by panels of their peers, each will receive $10,000.Judges looked through nearly 1,300 books.

Ferry is a year older than one of the night's honorary recipients, Elmore Leonard. Ferry, 88, won for "Bewilderment: New Poems and Translations," a showcase for his versatile style. He fought back tears as he confided that he thought there was a chance for winning because he "was so much older" than the other nominees. Attempting to find poetry in victory, he called the award a "pre-posthumous" honor.

Alexander quoted fellow fantasy writer Ursula K. Le Guin in highlighting the importance of stories for shaping kids' imaginations and making the world a larger place than the one they live in.

"We have to remember that," Alexander said.

The ceremony was hosted by commentator-performer Faith Salie and went smoothly even though Superstorm Sandy badly damaged the offices of the award's organizer, the National Book Foundation, whose staffers had to work with limited telephone and mail access.

Honorary prizes were given to Leonard and New York Times publisher and chairman Arthur O. Sulzberger Jr.

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