Millions in Northeast struggle after massive storm

NEW YORK (Reuters) - The northeastern United States battled epic flood waters and lengthy power outages on Tuesday after the massive storm Sandy pummeled the coast with a record storm surge, high winds and heavy rains that killed at least 45 people and caused billion of dollars in losses.

Millions of people in New York City and other hard-hit areas will spend days or weeks recovering from a storm already seen as far more destructive that Hurricane Irene, which slammed into the same region a year ago. One disaster modeling company said Sandy may have caused up to $15 billion in insured losses.

The storm killed 18 people in New York City, among 23 total in New York state, while six died in New Jersey. Seven other states reported fatalities.

Some 8.2 million homes and businesses in several states were without electricity as trees toppled by Sandy's fierce winds took down power lines.

Sandy hit the coast with a week to go to the November 6 presidential election and turned its fury inland with heavy snowfall, dampening an unprecedented drive to encourage early voting and raising questions whether some polling stations will be ready to open on Election Day.

New York City will struggle without its subway system, which was inundated and will remain shut for days. Much of the Wall Street district was left underwater but officials hoped to have financial markets reopen on Wednesday.

Sandy was the biggest storm to hit the country in generations when it crashed ashore with hurricane-force winds on Monday near the New Jersey gambling resort of Atlantic City, devastating the Jersey Shore tourist haven. Flood waters lifted parked cars and deposited them on an otherwise deserted highway.

With the political campaign and partisanship on hold, Democratic President Barack Obama and Republican New Jersey Governor Chris Christie planned to tour New Jersey disaster areas on Wednesday.

"It's total devastation down there. There are boats in the street five blocks from the ocean," said Peter Sandomeno, an owner of the Broadway Court Motel in Point Pleasant Beach, New Jersey.

Christie, who has been a strong supporter of Republican presidential challenger Mitt Romney, praised Obama and the federal response to the storm.

Obama and Romney put campaigning on hold for a second day but Romney planned to hit the trail again in Florida on Wednesday and Obama seemed likely to resume campaigning on Thursday for a final five-day sprint to Election Day.

Obama faces political danger if the government fails to respond well, as was the case with predecessor George W. Bush's botched handling of Hurricane Katrina in 2005. Obama has a chance to show that his administration has learned the lessons of Katrina and that he can lead during a crisis.

NEW YORK UNDER WATER

Sandy brought a record storm surge of almost 14 feet to downtown Manhattan, well above the previous record of 10 feet during Hurricane Donna in 1960, the National Weather Service said.

The storm forced New York City to postpone its traditional Halloween parade, which had been set for Wednesday night in Greenwich Village and threatened to disrupt Sunday's New York City marathon.

The lower half of Manhattan went dark when surging seawater flooded a substation and as power utility Consolidated Edison shut down others pre-emptively. Some 250,000 customers lost power.

Fire ravaged the Breezy Point neighborhood in the borough of Queens, destroying 110 homes and damaging 20 while destroying still more in the nearby neighborhood of Belle Harbor. Remarkably, no fatalities were reported.

"To describe it as looking like pictures we've seen of the end of World War Two is not overstating it," New York Mayor Michael Bloomberg said after touring the area. "The area was completely leveled. Chimneys and foundations were all that was left of many of these homes."

Hospitals closed throughout the region, forcing patients to relocate and doctors to carry premature babies down more than a dozen flights of stairs at one New York City facility.

While some parts of the city went unscathed, neighborhoods along the East and Hudson rivers bordering Manhattan were underwater and expected to be without power for days, as were low-lying streets in Battery Park near Ground Zero, where the World Trade Center stood before the September 11, 2001, attacks.

"I'm lucky to have gas; I can make hot water. But there is no heating and I'm all cold inside," said Thea Lucas, 87, who lives alone in Manhattan's Lower East Side.

DESTRUCTION THROUGHOUT REGION

Airlines canceled more than 18,000 flights, though two of the New York City area's three major airports planned to reopen with limited service on Wednesday.

Cellphone service went silent in many states and some emergency call centers were affected.

Some cities like Washington, Philadelphia and Boston were mostly spared but he storm reached as far inland as Ohio and parts of West Virginia were buried under 3 feet (1 meter) of snow, a boon for ski resorts that was one of the storm's few bright spots.

The western extreme of Sandy's wind field buffeted the Great Lakes region, according to Andrew Krein of the National Weather Service, generating wind gusts of up to 60 mph on the southern end of Lake Michigan and up to 35 mph Chicago.

In Cleveland, buildings in the city's downtown area were evacuated due to flooding, police said. Winds gusting to 50 mph brought down wires and knocked out power to homes and business. City officials asked residents to stay inside and for downtown businesses to remained closed for the day.

Amid the devastation there was opportunity. Snowmakers at Snowshoe Mountain in the mountains of West Virginia had their equipment running at full speed on Tuesday, taking advantage of the cold temperatures to build the 24-30 inch base they need to open for skiing by Thanksgiving.

"There are snowmakers out there making snow in what was a hurricane and blizzard," said Dave Dekema, marketing director for the resort, which received a foot-and-a-half of snow, with another foot or two expected.

The resort's phones, email account and Facebook pages were "going crazy," Dekema said, with avid skiers and snowboarders wondering if there was any chance of getting out on the mountain this weekend. He said that was unlikely.

(Additional reporting by Scott Malone in Boston; Ilaina Jonas, Daniel Bases, Lucas Jackson, Edward Krudy and Scott DiSavino in New York; Ian Simpson in West Virginia; Diane Bartz and Andrea Shalal-Esa in Washington; Brendan O'Brien in Milwaukee; Susan Guyett in Indianapolis; Kim Palmer in Cleveland and James B. Kelleher in Chicago. Writing by Daniel Trotta and Ros Krasny; Editing by Bill Trott)

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Survivors criticize Myanmar gov't over clashes

SITTWE, Myanmar (AP) — Victims of ethnic clashes in western Myanmar lashed out at the government for failing to prevent violence between Muslims and Buddhists that has displaced more than 32,000 people over the last week.

The crisis, which erupted in June, has raised international concern and posed one of the biggest challenges yet to Myanmar's reformist President Thein Sein, who inherited power from a xenophobic military junta last year.

The latest violence between ethnic Rakhine Buddhists and Rohingya Muslims began Oct. 21 and has left at least 84 people dead and 129 injured, according to the government. Human rights groups believe the true toll could be far higher.

"The authorities are not solving the problem and soldiers are not defending us," said Kyaw Myint, a Muslim who took refuge at Thechaung camp outside the Rakhine state capital, Sittwe. He fled his home in nearby Pauktaw when it was torched Wednesday.

"I feel as though I am in hell," he said. "We have no one to take care of us, no place to go, and now no job to earn a living."

A 37-year-old Rakhine trader named Maung Than Naing, reached by phone in the village of Kyauktaw, also expressed anger over the government's handling of the violence.

"We are helpless because the government is not dealing with the root of the problem," he said. "We no longer want to live with the Muslims."

Maung Than Naing, who also lost his home in an arson attack, blamed the Rohingya for breaking the calm.

"These poor Muslim people who live hand to mouth burned their own homes so that they enjoy the U.N. aid where they are given shelter and free food," he said.

A tense calm has held across the region since Saturday, Rakhine state spokesman Myo Thant said. More police and soldiers have been deployed to increase security, but he declined to give details.

The priority now is to ensure those who lost homes have adequate shelter and food, Myo Thant said.

Although many Rohingya have lived in Myanmar for generations, they are widely denigrated as intruders who came from neighboring Bangladesh to steal scarce land.

The Rohingya also face official discrimination, a policy encouraged by Myanmar's previous military regimes to enlist popular support among other groups. A 1982 law formally excluded them as one of the country's 135 ethnicities, meaning most are denied basic civil rights and are deprived of citizenship.

Human rights groups say racism also plays a role: Many Rohingya, who speak a Bengali dialect and resemble Muslim Bangladeshis, have darker skin and are heavily discriminated against.

Bangladesh, though, also denies them citizenship. The U.N. estimates their population in Myanmar at 800,000.

Tensions have simmered in western Myanmar since clashes first broke out in June after a Rakhine woman was allegedly raped and murdered by three Muslim men. The June violence displaced 75,000 people — also mostly Muslims.

U.N. Resident and Humanitarian Coordinator in Myanmar Ashok Nigam said Tuesday that the number of people confirmed displaced in the latest unrest rose to more than 32,000 after about 5,600 people who fled their villages on boats arrived at an island south of Sittwe.

The vast majority of the displaced are Muslim, Nigam said, adding that the U.N. figure was based on statistics from local authorities.

The new numbers bring the total number of displaced in Rakhine state since June to at least 107,000.

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Aye Aye Win reported from Yangon, Myanmar.

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Panasonic may curb solar panel, lithium battery expansion: sources

TOKYO (Reuters) - Electronics conglomerate Panasonic Corp may curtail its expanded production of solar panels and small lithium batteries used in PCs and other devices as part of new round of restructuring, two sources at the company told Reuters.

Panasonic recently built a solar panel plant in Malaysia for 45 billion yen ($564 million), upping capacity by one-third to 900 megawatts. Plans to further ramp up production to 1.5 gigawatts may be scaled back, however, because of weak demand, particularly in Europe, the sources said on condition they were not identified.

Panasonic's new president, Kazuhiro Tsuga, has promised a new revival plan for the Japanese company by the end of the current business year next March 31. He has said he will weed out loss-making or low-profitability units.

The firm's business in small lithium batteries has been hurt by price competition from Korean and Chinese competitors. Falling into the red last year, it was aiming to return to profit this year by shifting production to China, where costs are lower, but may post a loss instead, the sources said.

As a result of the squeeze on expanded output of solar panels and batteries, Panasonic's energy unit may struggle to reach a target of raising sales to more than 1 trillion yen, or 10 percent of overall sales, and operating margin to at least 10 percent by March 2016, the sources said.

The unit retains 202 billion yen of goodwill following the acquisition of Sanyo in 2010. Analysts estimate that two-thirds of that is related to solar panels and small lithium batteries.

Shares of Panasonic, which releases its results on Wednesday for the quarter ended September 30, rose 3 percent in morning trading in Tokyo to 507 yen. ($1 = 79.8150 Japanese yen) (Writing by Tim Kelly; Editing by Michael Watson)

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In Vietnam, US relies on pirate site to network

HO CHI MINH CITY, Vietnam (AP) — It's a wildly popular website laden with unlicensed songs and Hollywood movies, a prime exhibit of the digital piracy that is strangling the music industry in Asia and eroding legitimate online sales around the world.

The free-to-download bonanza has pushed Vietnam's Zing.vn into the ranks of the globe's top 550 websites. But a few clicks inside the site reveal a surprising presence: the U.S. government, which maintains a bustling social media account there.

Washington is a vocal proponent of intellectual property rights in Vietnam as it is around the world, and a site like Zing would be shut down in the United States. But with space for public diplomacy limited in Communist Vietnam, the American embassy uses its "Zingme" account to reach out to young people in Vietnam as it seeks to build closer ties with its former enemy.

The embassy's presence shows just how mainstream pirate sites have become in Vietnam, where the government does nothing to stop them operating. But it also raises questions whether Washington is legitimizing a renowned pirate site that record labels, singers and industry groups say ignores requests that it take down infringing material.

Coca-Cola and Samsung pulled their advertising from the site earlier this month because of piracy concerns following questions by The Associated Press. The move challenged Zing's business model and was praised by recording industry groups. Samsung said last week it was also closing its Zingme account for the same reason.

The embassy said it recognizes the concerns for U.S. copyright interests posed by Zing but that it believes that contact with the website's users could reduce traffic or infringing activity on it. The mission sometimes uses its Zingme page to post about copyright infringement.

Its statement noted that the site had removed, at its request, the link to infringing material that appears on other Zingme pages as a matter of course. It also noted to its lack of options in a country where the Communist government controls the media, saying "there were few spaces for public discourse and intermittent access to Facebook", referring to a block the government sometimes puts on the American social networking site.

But not everyone thinks engaging with Zing is the right thing to do.

"Here we are as an American company trying to set things right with one of the biggest pirates in Vietnam but the U.S. embassy is essentially showing its support by being on its site," said Mimi Nguyen, an American who has been trying fruitlessly to get Zing to take down some 10,000 songs owned by her family's business for a year.

"It is really sad to find out the embassy is using their platform."

The Recording Industry Association of America, which praised the decision by Samsung and Coke to withdrawn from Zing and has labeled Zing a "notorious" pirate site, said it was neither endorsing nor criticizing the embassy's decision to maintain the site.

Neil Turkewitz, a senior vice president at the association, said he imagined the embassy had tried to balance the ability to target a tech-savvy demographic with anti-piracy messages against the appearance of a connection between it and the site.

"My guess is that it wasn't an easy decision," he said.

The recording industry around the world is struggling to make money from online distribution models, and illegal downloading remains rampant. Artists and producers in much of Asia are feeling the pinch especially hard because governments have failed to pass or enforce anti-piracy laws. Licensed CDs, films and downloads can cost the equivalent of a day's salary, making it even harder to wean people off pirated products.

In Vietnam, inaction by a government that sees no political upside in cracking down on what many see as a victimless crimes has pushed the industry to the point of collapse. Zing is seen as the No.1 enemy by those who speak out against its effective stranglehold over the country's music industry.

"Zing is destroying the industry and they know it," said record producer Quoc Trung, who is leading a campaign against online piracy. "We need people to pay for music, not just click on it. It is now or never."

Zing, which declined repeated requests for comment on this article and a previous one, has used free download to become the sixth-most visited site in Vietnam, and the second most popular Vietnamese music download site. Around 15 percent of its visitors are from overseas. It is not the only infringing website in Vietnam by far, but it is the most visited.

Sites that offer pirated content alongside other Internet services like Zing exist elsewhere around the world and are among the most reprehensible, according to the Recording Industry Association of America.

"They want to appear as legitimate actors, and have functions unrelated to piracy, yet operate network services that include features that intentionally and effectively induce infringement," it said in a letter to the U.S. Trade Representative in August asking the government to use all the tools at its disposal to ensure Zing and others are not permitted to undermine legitimate online markets.

"These services deliberately gain market share by providing access to infringing materials, launching music services without any form of licensing, and have demonstrated continued resolve to engage in conduct based upon misappropriation."

Zingme closely resembles Facebook, which recently overtook the Vietnamese site in subscriber numbers, according to one research group. Facebook is sometimes blocked by the government because of fears it could be used to mobilize dissent against its one-party rule. Zingme is never blocked, and is more popular with younger, less educated Vietnamese. Companies and institutions often have accounts on both. The embassy has more than 18,000 friends on Zingme, compared to 12,000 on Facebook.

Many in the industry have no choice but to work with Zing even as it distributes their music and films for free. Not having your music on the site means getting an audience for live concerts, or attracting commercial sponsorship, is almost impossible, industry executives said. But a few are pushing back, among them established singer Le Quyen, who is suing Zing and eight other infringing websites.

"I'm sure that Zing is aware that what they do is wrong, but they are afraid that other singers will put pressure on them if I win the case," she said before one of her near-weekly concerts at a venue owned by her husband here. "That's why they keep avoiding my demands. Their tactic is to drag the case on until their opponent gets tired and gives up."

Some in the industry predict Zing and other websites will embrace a more legitimate model, rather like Baidu in neighboring China, which after years of complaints from international and local record labels about pirated content signed a licensing deal with its former critics last year. Major Western record labels eager to sell music in the 13th most populous country in the world have been in early talks with Zing and other sites, but there is no deal on the horizon.

For now, the sites are not taking down their unlicensed content because doing so would mean that users would flock to that of a rival, and new ones are cropping all the time. Those offering unlimited downloads of Hollywood movies for a monthly subscription as low as $2 are amassing large audiences, and could be looking to leveraging their popularity to become legitimate providers.

"In Vietnam, you build an audience first, and then you negotiate," said Phung Tien Cong, a manager at MVCorp, which is trying to establish a pay-for-song business in collaboration with Zing, other websites and license holders.

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Brummitt can be reached at https://twitter.com/cjbrummitt.

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China passes law to curb abuse of mental hospitals

BEIJING (AP) — China's legislature on Friday passed a long-awaited mental health law that aims to prevent people from being involuntarily held and unnecessarily treated in psychiatric facilities — abuses that have been used against government critics and triggered public outrage.

The law standardizes mental health care services, requiring general hospitals to set up special outpatient clinics or provide counseling, and calls for the training of more doctors.

Debated for years, the law attempts to address an imbalance in Chinese society — a lack of mental health care services for a population that has grown more prosperous but also more aware of modern-day stresses and the need for treatment. Psychiatrists who helped draft and improve the legislation welcomed its passage.

"The law will protect the rights of mental patients and prevent those who don't need treatment from being forced to receive it," said Dr. Liu Xiehe, an 85-year-old psychiatrist based in the southwestern city of Chengdu, who drafted the first version of the law in 1985.

"Our mental health law is in line with international standards. This shows the government pays attention to the development of mental health and the protection of people's rights in this area," Liu told The Associated Press by phone.

Pressure has grown on the government in recent years after state media and rights activists reported cases of people forced into mental hospitals when they did not require treatment. Some were placed there by employers with whom they had wage disputes, some by their family members in fights over money, and others — usually people with grievances against officials — by police who wanted to silence them.

Yang Yamei, of the Inner Mongolian city of Hulunbuir, has been locked up at a local mental hospital for the last eight months in what her daughter says is retaliation for her attempts to seek compensation from the government for a court ruling that unfairly sentenced her to three years in a labor camp.

This is the third time in four years that she has been forcibly committed, her daughter Guo Dandan said by phone.

"It's because my mother has been petitioning for help, but the authorities don't want to solve her problems, so they put her in there," Guo said. "I have tried many times to persuade her doctors to release her, but they refuse."

Guo's claim could not be independently verified. Local government offices and the mental hospital could not immediately be reached for comment.

"I only hope that the law will be stricter," Guo said. "In the cases of petitioners, when the authorities can use their personal relationships with doctors to fake medical records, hospitals should not be allowed to accept such cases."

The law states for the first time that mental health examinations and treatment must be conducted on a voluntary basis, unless a person is considered a danger to himself or others. Only psychiatrists have the authority to commit people to hospitals for treatment, and treatment may be compulsory for patients diagnosed with a severe mental illness, according to the law.

Significantly, the law gives people who feel they have been unnecessarily admitted into mental health facilities the right to appeal.

But it will likely be a challenge for people to exercise that right once they are in the system, said Huang Xuetao, a lawyer who runs an organization in the southern city of Shenzhen that assists people who have been committed against their will.

Though questions remain over how the law will be enforced and whether sufficient government funding will be provided to enable the expansion of services, psychiatrists said the passage of the legislation marked a milestone.

"It's very exciting. I honestly believe this will start a new trajectory," said Dr. Michael Phillips, a Canadian psychiatrist who has worked in China for nearly three decades and now heads a suicide research center in Shanghai.

Phillips said the biggest change for the psychiatric system is the curb on involuntary admissions. At least 80 percent of hospital admissions are compulsory, he said.

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Associated Press researcher Flora Ji contributed to this report.

Follow Gillian Wong on Twitter: http://twitter.com/gillianwong

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Superstorm Sandy clobbers New York City

NEW YORK, N.Y. - Superstorm Sandy slammed into the New Jersey coastline and hurled a record-breaking 13-foot (4-meter) surge of seawater at New York City on Monday, roaring ashore and putting the presidential campaign on hold a week before Election Day. At least 10 deaths were blamed on the storm.

Sandy knocked out power to at least 5.2 million people across the U.S. East, and New York's main utility said large sections of Manhattan had been plunged into darkness by the storm, with 250,000 customers without power as water pressed into the island from three sides, flooding rail yards, subway tracks, tunnels and roads.

Just before its center reached land, the storm was stripped of hurricane status, but the distinction was purely technical, based on its shape and internal temperature. It still packed hurricane-force wind, and forecasters were careful to say it remained every bit as dangerous to the 50 million people in its path.

The full extent of the storm's damage across the region was unclear, and unlikely to become known until day break. Heavy rain and further flooding remain major threats over the next couple of days as the storm makes its way into Pennsylvania and up into New York State. Near midnight, the centre of the storm was just outside Philadelphia, and its winds were down to 75 mph (120 kph), just barely hurricane strength.

The National Hurricane Center announced at 8 p.m. that Sandy had come ashore near Atlantic City. It smacked the boarded-up big cities of the Northeast corridor, from Washington and Baltimore to Philadelphia, New York and Boston, with stinging rain and gusts of more than 85 mph (135 kph). The sea surged a record of nearly 13 feet (4 metres) at the foot of Manhattan, flooding the financial district and subway tunnels.

The 10 deaths were in New Jersey, New York, Maryland, Pennsylvania and Connecticut. Police in Toronto said a woman was killed by a falling sign as high winds closed in on Canada's largest city.

As it made its way toward land, it converged with a cold-weather system that turned into a fearsome superstorm, a monstrous hybrid consisting not only of rain and high wind but of snow. Forecasters warned of 20-foot (6-meter) waves bashing into the Chicago lakefront and up to 3 feet (0.9 metres) of snow in West Virginia.

Storm damage was projected at $10 billion to $20 billion, meaning it could prove to be one of the costliest natural disasters in U.S. history.

President Barack Obama and Mitt Romney suspended their campaigning with just over a week to go before Election Day.

At the White House, Obama made a direct appeal to those in harm's way: "Please listen to what your state and local officials are saying. When they tell you to evacuate, you need to evacuate. Don't delay, don't pause, don't question the instructions that are being given, because this is a powerful storm."

The storm washed away a section of the Atlantic City Boardwalk in New Jersey. Water was splashing over the seawalls at the southern tip of Manhattan.

New York Mayor Michael Bloomberg said late Monday that the worst of the rain had passed for the city, and that the high tide that sent water sloshing into Manhattan from three sides was receding.

Still, authorities also feared the surge of seawater would damage the underground electrical and communications lines in lower Manhattan that are vital to the nation's financial centre.

Water began pooling in rail yards and on highways near the Hudson River waterfront on Manhattan's far west side. On coastal Long Island, floodwaters swamped cars, downed trees and put neighbourhoods under water as beachfronts and fishing villages bore the brunt of the storm. A police car was lost rescuing 14 people from the popular resort Fire Island.

In downtown Manhattan, rescue workers floated bright orange rafts on flooded streets, while police officers with loudspeakers told people to go home.

"Now it's really turning into something," said Brian Damianakes, taking shelter in a bank vestibule and watching a trash can blow down the street in Battery Park.

A construction crane atop a luxury high-rise in midtown Manhattan collapsed in high winds and dangled precariously. Residents in surrounding buildings were ordered to move to lower floors and the streets below were cleared, but there were no immediate reports of injuries.

The facade of a four-story Manhattan building in the Chelsea neighbourhood crumbled and collapsed suddenly, leaving the lights, couches, cabinets and desks inside visible from the street. No one was hurt, although some of the falling debris hit a car.

The major American stock exchanges closed for the day, the first unplanned shutdown since the Sept. 11 attacks in 2001. Wall Street expected to remain closed on Tuesday. The United Nations cancelled all meetings at its New York headquarters.

Not only was the New York subway shut down, but the Holland Tunnel connecting New York to New Jersey was closed, as was a tunnel between Brooklyn and Manhattan. The Brooklyn Bridge, the George Washington Bridge, the Verrazano-Narrows Bridge and several other spans were closed because of high winds.

Authorities had warned that New York City and Long Island could get the worst of the storm surge: an 11-foot (3-meter) onslaught of seawater that could swamp lower Manhattan, flood the subways and damage the underground network of electrical and communications lines that are vital to the nation's financial capital.

"Leave immediately. Conditions are deteriorating very rapidly, and the window for you getting out safely is closing," New York Mayor Michael Bloomberg told those in low-lying areas earlier in the day.

New York University hospital lost backup power and was being evacuated, Bloomberg said. The hospital is located near the East River in an area of lower Manhattan where flooding was reported.

Defiant New Yorkers jogged, pushed strollers and took snapshots of churning New York Harbor during the day Monday, trying to salvage normal routines.

Without most stores and museums open, tourists were left to snap photos of the World Trade Center site, Wall Street and Times Square in largely deserted streets.

Belgian tourist Gerd Van don Mooter-Dedecker, 56, wandered in to Trinity Church after learning that a planned shopping spree with her husband Monday wouldn't happen. "We brought empty suitcases so we could fill them up," she said.

As rain from the leading edges began to fall over the Northeast on Sunday, hundreds of thousands of people from Maryland to Connecticut were ordered to leave low-lying coastal areas, including 375,000 in lower Manhattan and other parts of New York City, 50,000 in Delaware and 30,000 in Atlantic City, New Jersey.

Obama declared emergencies in Massachusetts, Connecticut, Rhode Island, New York, New Jersey and Pennsylvania, authorizing federal relief work to begin well ahead of time. He promised the government would "respond big and respond fast" after the storm hits.

Off North Carolina, a replica of the 18th-century sailing ship HMS Bounty that was built for the 1962 Marlon Brando movie "Mutiny on the Bounty" went down in the storm, and 14 crew members were rescued by helicopter from rubber lifeboats bobbing in 18-foot (5.5-meter) seas. Another crew member was found hours later and was hospitalized in critical condition. The captain was still missing.

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Zezima reported from Atlantic City, New Jersey. Contributing to this report were Jennifer Peltz and Tom Hays in New York City, AP Science Writer Seth Borenstein in Washington; Allen Breed in Raleigh, North Carolina; Porter in Pompton Lakes, New Jersey; Wayne Parry in Point Pleasant Beach, New Jersey; and David Dishneau in Delaware.

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Chinese protest factory even after official pledge

NINGBO, China (AP) — After three days of protests by thousands of citizens over pollution fears, a local Chinese government relented and agreed that a petrochemical factory would not be expanded, only to see the protests persist.

The standoff in the prosperous city of Ningbo has highlighted the deep mistrust between people and the government in China. Should they last longer, the demonstrations would upset an atmosphere of calm that Chinese leaders want for a transfer of power in the Communist Party leadership next month.

The protest, which started sporadically last week, swelled over the weekend and led to clashes between citizens and police. The Ningbo city government announced Sunday evening that they and the project's investor — the state-owned petrochemical behemoth Sinopec — had "resolutely" agreed not to go ahead with the expansion.

Outside the government offices where crowds of protesters stayed, an official tried to read the statement on a loudspeaker but was drowned out by shouts demanding the mayor step down. On the third attempt, the crowd briefly cheered but then turned back to demanding that authorities release protesters detained earlier and believed to be held inside. Though the crowd dissipated late Sunday, about 200 people returned again Monday morning.

"There is very little public confidence in the government," 24-year-old protester Liu Li said Sunday. "Who knows if they are saying this just to make us leave and then keep on doing the project."

Protesters returned again Monday morning, though the crowd was smaller, about 200 people, and was comprised mainly of older people. Police channeled the protesters away from the front of the modest government building off to a side street, and plainclothes officers mingled in the crowd.

The city government was likely under great pressure to defuse the protest with China's leadership wanting calm for the party congress that starts Nov. 8. It was unclear whether local authorities will ultimately cancel the petrochemical project or continue it when the pressure is lower.

Hundreds of people outside the government offices refused to budge despite being urged to leave by officials. Riot police with helmets and shields came out of the government compound and pushed the crowd back. Some people including families ran away. Police dragged six men and one woman into the compound, beating and kicking at least three of them. Police also smashed placards and took away flags.

The crowd roared for the protesters' release. Police also briefly detained a correspondent from the British television network ITN.

The demonstration in wealthy Zhejiang province is the latest this year over fears of health risks and declining property values from industrial projects, as Chinese who have seen their living standards improve become more outspoken against environmentally risky projects in their areas. A senior adviser to the Environment Ministry told legislators on Friday that the number of protests over environmental issues has increased nearly 30 percent a year for the past 15 years and that they had been getting larger, according to state media.

"The government hides information from the people. They are only interested in scoring political points and making money," said one protester, Luo Luan. "They don't care about destroying the environment or damaging people's lives."

The protests began a few days earlier in the coastal district of Zhenhai, site of the Sinopec Zhenhai Refining & Chemical Co. factory, which state media has described as an $8.9 billion complex to produce oil and ethylene. On Saturday they swelled and spread to the center of Ningbo city, whose officials oversee Zhenhai.

Residents reported that Saturday's protests involved thousands of people and turned violent after authorities used tear gas and arrested participants.

Authorities said "a few" people disrupted public order by staging sit-ins, unfurling banners, distributing fliers and obstructing roads.

Early Sunday, thousands of residents began gathering outside the offices of the municipal government. Hundreds marched away from the offices in an apparent effort to round up more support along nearby shopping streets. Police diverted traffic to allow them to pass down a main road.

The crowds in Ningbo are a slice of China's rising middle class that poses an increasingly boisterous challenge to the country's incoming leadership: Armed with expensive smartphones, Internet connectivity and higher expectations than the generations before them, their impatience with the government's customary lack of response is palpable.

A 30-year-old woman surnamed Wang said officers took her to a police station Saturday and made her sign a guarantee that she would not participate in any more protests, but she came back Sunday anyway.

"They won't even let us sing the national anthem," Wang said. "They kept asking me who the leader of the protests was and I said that this is all voluntary. We have no leader."

In a sign that censors were at work, the name "Zhenhai" was blocked on China's popular microblogging site Sina Weibo.

Protester Yu Yibing said he wanted the factory to be closed and his 7-year-old son to grow up in a clean environment.

"As the common people, we need to live in a green environment. This is a reasonable request," Yu said. "But the government only puts out some statement and refuses to see us and also suppresses us. I don't know how else we can express our views."

The Zhenhai district government said in a short statement on its website Sunday evening that the project wouldn't go ahead and that refining at the factory would stop for the time being while a scientific review is conducted.

Past environmental protests have targeted a waste-water pipeline in eastern China and a copper plant in west-central China. A week ago, hundreds protested for several days in a small town on China's Hainan island over a coal-fired power plant.

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Associated Press writer Louise Watt and researcher Henry Hou in Beijing contributed to this report.

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SAP eyes "long" period of high sales growth: report

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Reports: UK rocker arrested as part of Savile case

LONDON (AP) — Police investigating child sex abuse allegations against the late BBC television host Jimmy Savile arrested former glam rock star and convicted sex offender Gary Glitter on Sunday, British media reported, raising further questions about whether Savile was at the center of a broader pedophile ring.

Police would not directly identify the suspect arrested Sunday, but media including the BBC and Press Association reported he was the 68-year-old Glitter.

The musician, whose real name is Paul Gadd, made it big with the crowd-pleasing hit "Rock & Roll (Part 2)," a mostly instrumental anthem that has been a staple at American sporting events, thanks to its catchy "hey" chorus. But he fell into disgrace after being convicted on child abuse charges in Vietnam.

Sunday's arrest was the first in a widening scandal over Savile's alleged sex crimes, which started garnering attention earlier this month when a television documentary showed several women claiming that Savile abused them when they were teenagers. Hundreds of potential victims have since come forward to report similar claims to police against Savile, a much-loved children's TV presenter and disc jockey who died at the age of 84 last year.

Most have alleged abuse by Savile, but some said they were abused by Savile and others. Most claimed they were assaulted in their early teens.

The scandal has raised questions about whether the BBC, the publicly funded and trusted broadcaster, had ignored crimes it suspected over several decades. Its executives have apologized and vowed to uncover the true scale of the alleged abuse.

"The BBC's reputation is on the line," Chris Patten, the chairman of the BBC Trust, wrote in The Mail on Sunday newspaper. "The BBC risks squandering public trust because one of its stars over three decades was apparently a sexual criminal ... and because others — BBC employees and hangers-on — may also have been involved."

On Sunday, the BBC and Sky News showed footage of Glitter, who wore a hat, a dark coat and sunglasses, being taken from his home by officers and driven away.

Police would not directly identify the suspect, but when asked about Glitter a spokesman said the force arrested a man in his 60s early Sunday morning in London on suspicion of sexual offenses in connection with the Savile probe. He was released later Sunday and was due to return to a London police station in December for further questioning, police said. British police do not generally identify suspects under arrest by name until they are charged.

Glitter, known for his shiny jumpsuits and bouffant wigs, was jailed in Britain in 1999 for possessing child pornography, and convicted in 2006 in Vietnam of committing "obscene acts with children" — offenses involving girls aged 10 and 11. He was deported back to Britain in 2008.

In 2006, the NFL advised its football teams not to use the Glitter version of "Rock and Roll (Part 2)" at games.

One witness recently told a BBC-TV show that she once saw Glitter having sex with a schoolgirl in Savile's dressing room at the broadcaster's TV center in the 1970s. Glitter has denied the allegations.

Police have said that though the majority of cases it is investigating relate to Savile alone, some involve the entertainer and other unidentified suspects. In addition, some potential victims who reported abuse by Savile also told police about separate allegations against unidentified men that did not involve the BBC host.

The scandal has horrified Britain with revelations that Savile, the longtime host of the popular BBC shows "Top of the Pops" and "Jim will Fix It," allegedly cajoled and coerced vulnerable teens into having sex with him in his car, his camper van, and even in dingy dressing rooms on BBC premises. Police describe him as one of the worst sex offenders in recent history.

The BBC has set up an independent inquiry into the corporation's culture and practices in the years Savile worked there. It also launched a separate inquiry into why its managers shelved an investigation into the allegations.

But the scandal continues to put the broadcaster under pressure, and it seems likely that more people — either outside or inside the corporation — could be implicated.

"It could be the beginning of other high-profile arrests," Roy Greenslade, a journalism professor at London's City University, said in an interview with The Associated Press on Sunday.

Max Clifford, a prominent public relations guru, claimed that dozens of celebrities from the 1960s and 1970s have approached him to express fear that they could be drawn into to the scandal and criticized for their hedonistic behavior in the past.

Greenslade said that while Glitter's arrest must be a huge concern to the BBC, it is too early to say that the broadcaster's reputation is in crisis.

"If any BBC employee is shown to be involved, then there would be a nosedive in public trust," he said. "But nothing at the moment has been proven."

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Sandy: East Coast braces for epic hurricane, ‘life-threatening’ storm surge

Waves crash into a pier in Nags Head, N.C., Oct. 27, 2012. (Gerry Broome/AP)

[UPDATED: 8:00 p.m. ET]

"Superstorm." "The Perfect Storm." "Frankenstorm."

Whatever you want to call it, the East Coast is bracing for Hurricane Sandy, a "rare hybrid storm" that is expected to bring a life-threatening storm surge to the mid-Atlantic coast, Long Island Sound and New York harbor, forecasters say, with winds expected to be at or near hurricane force when it makes landfall sometime on Monday.

According to the National Hurricane Center, the Category 1 hurricane was centered about 280 miles southeast of Cape Hatteras, N.C., and 485 miles south of New York City early Sunday, carrying maximum sustained winds of 75 mph and moving northeast at 15 mph.

[Slideshow: Latest photos from Hurricane Sandy]

New York Mayor Michael Bloomberg ordered the immediate, mandatory evacuation for low-lying coastal areas, including Coney Island, the Rockaways, Brighton Beach, Red Hook and some parts of lower Manhattan along the East River.

"If you don't evacuate, you're not just putting your own life at risk," Mayor Bloomberg said at a news conference Sunday. "You're endangering first responders who may have to rescue you."

New Jersey Governor Chris Christie's message for residents was a bit more blunt. "Don't be stupid," Christie said Sunday afternoon, announcing the suspension of the state's transit system beginning at 12:01 a.m. Monday.

Earlier, New York Governor Andrew Cuomo announced the suspension of all MTA service--including subways, buses, Long Island Railroad and Metro North--beginning at 7 p.m. Sunday. New York City Public Schools will be closed on Monday, the mayor said. The New York Stock Exchange said its trading floor will be closed on Monday, too--the first such shutdown in 27 years, according to the Wall Street Journal.

[Related: Superstorm could impact 60 million]

Sandy is expected to continue on a parallel path along the mid-Atlantic coast later Sunday before making a sharp turn toward the northwest and southern New Jersey coastline on Monday--with the Jersey Shore and New York City in its projected path.

But the path is not necessarily the problem.

"Don't get fixated on a particular track," the Associated Press said. "Wherever it hits, the rare behemoth storm inexorably gathering in the eastern U.S. will afflict a third of the country with sheets of rain, high winds and heavy snow."

(FEMA)

A tropical storm warning has been issued between Cape Fear to Duck, N.C., while hurricane watches and high-wind warnings are in effect from the Virginia to Massachusetts. The hurricane-force winds extend 175 miles from the epicenter of the storm, while tropical storm-force winds extend 500 miles--or roughly 1,000 miles end to end, making Sandy one of the biggest storms to ever hit the East Coast.

"We're looking at impact of greater than 50 to 60 million people," Louis Uccellini, head of environmental prediction for the National Oceanic and Atmospheric Administration, told the Associated Press.

"The size of this alone, affecting a heavily populated area, is going to be history making," Jeff Masters wrote on the Weather Underground blog.

President Barack Obama received a briefing on the storm at Federal Emergency Management Agency headquarters in Washington on Sunday. "My main message to everybody involved is that we have to take this seriously," President Obama said. "[We will] respond big and respond fast."

[Also read: Big storm scrambles presidential race schedules]

"I can be as cynical as anyone," Christie said on Saturday, announcing a state of emergency. "But when the storm comes, if it's as bad as they're predicting, you're going to wish you weren't as cynical as you otherwise might have been."

Meanwhile, emergency evacuations were being mulled by state officials in Connecticut, Massachusetts, Vermont, New Hampshire and even Maine.

In Virginia, Governor Bob McDonnell said 20,000 homes there had already reported power outages.

(Weather.com)

"This is not a coastal threat alone," said FEMA director Craig Fugate said during a media briefing early Sunday. "This is a very large area."

Forecasters also fear the combination of storm surge, high tide and heavy rain--between 3 and 12 inches in some areas--could be life-threatening for coastal residents.

According to the National Hurricane Center summary, coastal water levels could rise anywhere between 1 and 12 feet from North Carolina to Cape Cod, depending on the timing of the "peak surge." A surge of 6 to 11 feet is forecast for Long Island Sound and Raritan Bay, including New York Harbor.

The storm surge in New York Harbor during Hurricane Irene in September 2011, forecasters noted, was four feet.

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