Israel hits Hamas buildings, shoots down Tel Aviv-bound rocket

GAZA/JERUSALEM (Reuters) – Israeli aircraft bombed Hamas government buildings in Gaza, and the “Iron Dome” defense system shot down a Tel Aviv-bound rocket on Saturday as Israel geared up for a possible ground invasion.

Hamas, the Palestinian Islamist group that runs the Gaza Strip, said Israeli missiles wrecked the office building of Prime Minister Ismail Haniyeh – where he had met on Friday with the Egyptian prime minister – and struck a police headquarters.

Along the Tel Aviv beachfront, volleyball games came to an abrupt halt and people crouched as sirens sounded. Two interceptor rockets streaked into the sky. A flash and an explosion followed as Iron Dome, deployed only hours earlier near the city, destroyed the incoming projectile in mid-air.

With Israeli tanks and artillery positioned along the Gaza border and no end in sight to hostilities now in their fourth day, Tunisia’s foreign minister travelled to the enclave in a show of Arab solidarity.

In Cairo, a presidential source said Egyptian President Mohamed Mursi would hold four-way talks with the Qatari emir, the prime minister of Turkey and Hamas chief Khaled Meshaal in the Egyptian capital on Saturday to discuss the Gaza crisis.

Egypt has been working to reinstate calm between Israel and Hamas after an informal ceasefire brokered by Cairo unraveled over the past few weeks. Meshaal, who lives in exile, has already held a round of talks with Egyptian security officials.

Officials in Gaza said 43 Palestinians, nearly half of them civilians including eight children, had been killed since Israel began its air strikes. Three Israeli civilians were killed by a rocket on Thursday.

Israel unleashed its massive air campaign on Wednesday with the declared goal of deterring Hamas from launching rockets that have plagued its southern communities for years.

The Israeli army said it had zeroed in on a number of government buildings during the night, including Haniyeh’s office, the Hamas Interior Ministry and a police compound.

Taher al-Nono, a spokesman for the Hamas government, held a news conference near the rubble of the prime minister’s office and pledged: “We will declare victory from here.”

Hamas‘s armed wing claimed responsibility for Saturday’s rocket attack on Tel Aviv, the third against the city since Wednesday. It said it fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

“Well that wasn’t such a big deal,” said one woman, who had watched the interception while clinging for protection to the trunk of a baby palm tree on a traffic island.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Among those killed in airstrikes on Gaza on Saturday were at least four suspected militants riding on motorcycles.

Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, along with appeals to avoid civilian casualties.

Hamas, shunned by the West over its refusal to recognize Israel, says its cross-border attacks have come in response to Israeli strikes against Palestinian fighters in Gaza.

RESERVIST CALL-UP

At a late night session on Friday, Israeli cabinet ministers decided to more than double the current reserve troop quota set for the Gaza offensive to 75,000, political sources said, in a signal Israel was edging closer to an invasion.

Around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”

“We have a plan … it will take time. We need to have patience. It won’t be a day or two,” he added.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Prime Minister Benjamin Netanyahu, favorite to win a January national election.

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-09, killed over 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

“Israel should understand that many things have changed and that lots of water has run in the Arab river,” Tunisian Foreign Minister Rafik Abdesslem said as he surveyed the wreckage from a bomb-blast site in central Gaza.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s manoeuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

“DE-ESCALATION”

Netanyahu spoke late on Friday with U.S. President Barack Obama for the second time since the offensive began, the prime minister’s office said in a statement.

“(Netanyahu) expressed his deep appreciation for the U.S. position that Israel has a right to defend itself and thanked him for American aid in purchasing Iron Dome batteries,” the statement added.

The two leaders have had a testy relationship and have been at odds over how to curb Iran’s nuclear program.

A White House official said on Saturday Obama called Turkish Prime Minister Tayyip Erdogan to discuss how the two countries could help bring an end to the Gaza conflict.

Ben Rhodes, White House deputy national security adviser, told reporters that Washington “wants the same thing as the Israelis want”, an end to rocket attacks from Gaza. He said the United States is emphasizing diplomacy and “de-escalation”.

In Berlin, a spokesman for German Chancellor Angela Merkel said she had spoken to Netanyahu and Egypt’s Mursi, stressing to the Israeli leader that Israel had a right to self-defense and that a ceasefire must be agreed as soon as possible to avoid more bloodshed.

U.N. Secretary-General Ban Ki-moon is expected to visit Israel and Egypt next week to push for an end to the fighting in Gaza, U.N. diplomats said on Friday.

The Israeli military said 492 rockets fired from Gaza have hit Israel since the operation began. Iron Dome intercepted another 245.

In Jerusalem, targeted by a Palestinian rocket on Friday for the first time in 42 years, there was little outward sign on the Jewish Sabbath that the attack had any impact on the usually placid pace of life in the holy city.

Some families in Gaza have abandoned their homes – some of them damaged and others situated near potential Israeli targets – and packed into the houses of friends and relatives.

(Additional reporting by Dan Williams and Douglas Hamilton in Tel Aviv, Allyn Fisher-Ilan in Jerusalem, Jeff Mason aboard Air Force One, Writing by Jeffrey Heller; editing by Crispian Balmer)

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Israel bombards Gaza Strip, shoots down rocket

GAZA CITY, Gaza Strip (AP) — Israel destroyed the headquarters of Hamas' prime minister and blasted a sprawling network of smuggling tunnels in the southern Gaza Strip on Saturday, broadening a blistering four-day-old offensive against the Islamic militant group even as diplomatic efforts to broker a cease-fire appeared to be gaining steam.

Hamas officials said a building used by Hamas for broadcasts was bombed and three people were injured. The injured were from Al Quds TV, a Lebanon-based television channel. The building is also used by foreign news outlets including Germany's ARD, Kuwait TV and the Italian RAI and others.

The Israeli military spokesman was not immediately aware of the strikes but said they were investigating.

In neighboring Egypt, President Mohammed Morsi hosted leaders from Hamas and two key allies, Qatar and Turkey, to seek a way to end the fighting.

"There are discussions about the ways to bring a cease-fire soon, but there are no guarantees until now," Morsi said at a news conference. He said he was working with Turkey, Arab countries, the U.S., Russia and western European countries to halt the fighting.

Israel launched the operation on Wednesday in what it said was an effort to end months of rocket fire out of the Hamas-ruled territory. It began the offensive with an unexpected airstrike that killed Hamas' powerful military chief, and since then has relentlessly targeted suspected rocket launchers and storage sites.

In all, 48 Palestinians, including 15 civilians, have been killed and more than 400 civilians wounded, according to medical officials.

Three Israeli civilians have been killed and more than 50 wounded.

Israeli military officials expressed satisfaction with their progress Saturday, claiming they have inflicted heavy damage to Hamas.

"Most of their capabilities have been destroyed," Maj. Gen. Tal Russo, Israel's southern commander, told reporters. Asked whether Israel is ready to send ground troops into Gaza, he said: "Absolutely."

"Most of their weapons are stored in civilian's homes, they launch rockets from residential areas. We do not want to hit civilians in Gaza but we do want to hit the hornets' nest of terror in Gaza," he said.

Footage released Saturday by the Islamic Jihad showed rockets being fired from a hidden bunker in a built-up area. It wasn't clear whether it was a residential neighborhood.

Israel's Deputy Foreign Minister Danny Ayalon told channel 1 TV that "Hamas is committing a double war crime, they are firing rockets at Israeli civilians while using Palestinian civilians as human shields."

The White House said President Barack Obama was also in touch with the Egyptian and Turkish leaders. The U.S. has solidly backed Israel so far.

Speaking on Air Force One, deputy national security adviser Ben Rhodes said that the White House believes Israel "has the right to defend itself" against attack and that the Israelis will make their own decisions about their "military tactics and operations."

Despite the bruising offensive, Israel has failed to slow the barrages of rockets from Gaza.

The Israeli military said 160 rockets were launched into Israel on Saturday, raising the total number to roughly 500 since this week's fighting began. Eight Israelis, including five civilians, were lightly wounded Saturday, the army said.

Israel carried out at least 300 airstrikes on Saturday, the military said, and it broadened its array of targets. One air raid flattened the three-story office building used by Hamas' prime minister, Ismail Haniyeh. He was not inside the building at the time.

In southern Gaza, aircraft went after the tunnels that militants use to smuggle in weapons and other contraband from neighboring Egypt. Tunnel operators said the intensity of the bombing was unprecedented, and that massive explosions could be heard kilometers (miles) away, both in Gaza and in Egypt.

The operators, speaking on condition of anonymity because of the illicit nature of their business, said they cannot approach the tunnel area to assess the damage, but the blasts appeared to be more powerful than in Israel's last major push to destroy the tunnels during a previous offensive four years ago. The tunnels are a key lifeline for Hamas, bringing in both weapons and supporting a lucrative trade that helps fund the group's activities.

Missiles also 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.

Early on Sunday, Gaza health official Ashraf al-Kidra said two teenagers were killed and ten people were injured when a building was hit.

Gaza residents reported heavy Israeli raids overnight.

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.

Hamas has unveiled an arsenal of more powerful, longer-range rockets this week, and for the first time has struck at Israel's two largest cities, Jerusalem and Tel Aviv. Both cities, more than 70 kilometers (45 miles) from Gaza, had previously been beyond rocket range.

In a psychological boost for Israel, a new rocket-defense system known as "Iron Dome" knocked down a rocket headed toward Tel Aviv, eliciting cheers from relieved residents huddled in fear after air raid sirens sounded in the city.

Associated Press video showed a plume of smoke following an intercepting missile out of a rocket-defense battery deployed near the city, followed by a burst of light overhead as it struck its target.

Police said a second rocket also targeted Tel Aviv. It was not clear where it landed or whether it was shot down. No injuries were reported. It was the third straight day the city was targeted.

Israel says the Iron Dome system has shot down some 250 of 500 rockets fired toward the country this week, most in southern Israel near Gaza.

Saturday's interception was the first time Iron Dome has been deployed in Tel Aviv. The battery was a new upgraded version that was only activated on Saturday, two months ahead of schedule, the Defense Ministry said.

Israel has vowed to stage a ground invasion, a scenario that would bring the scale of fighting closer to that of a war four years ago. Hamas was badly bruised during that conflict but has since restocked its arsenal with more and better weapons. Five years after seizing control of Gaza, it has also come under pressure from smaller, more militant groups to prove its commitment to fighting Israel as it turns its focus to governing the seaside strip.

Israel's Defense Minister Ehud Barak has authorized the emergency call-up of up to 75,000 reserve troops ahead of a possible ground offensive. Israel has massed thousands of troops and dozens of tanks and armored vehicles along the border in recent days.

Egypt, which is led by Hamas' parent movement, the Muslim Brotherhood, has been spearheading efforts to forge a cease-fire. Morsi has vowed to stand strong with the people of Gaza and this week recalled Cairo's ambassador from Israel to protest the offensive.

Quietly, though, non-Muslim Brotherhood members in Morsi's government are said to be pushing Hamas to end its rocket fire on Israel. Morsi is under pressure not to go too far and risk straining ties with Israel's ally, the United States.

The Hamas website said Saturday that its leader, Khaled Meshaal, met with the head of Egyptian intelligence for two hours Saturday in Cairo, a day after the Egyptian official was in the Gaza Strip trying to work out an end to the escalation in violence.

Hamas has not immediately accepted Egypt's proposal for a cease-fire, but the group's website said it could end its rocket fire if Israel agrees to end "all acts of aggression and assassination" and lift its five-year blockade on Gaza. Egypt will present the Hamas position to Israeli officials.

Israeli officials say they are not interested in a "timeout," and want firm guarantees that the rocket fire, which has paralyzed life in an area home to 1 million Israelis, finally ends. Past cease-fires have been short lived.

Israeli Prime Minister Benjamin Netanyahu said he spoke with the leaders of Britain, Poland, Portugal, Bulgaria to press his case. "No government in the world would allow a situation where its population lives under the constant threat of rockets," Netanyahu told them, according to a statement from his office.

The diplomatic activity in Cairo illustrated Hamas' rising influence in a changing Middle East. The Arab Spring has brought Islamists to power and influence across the region, helping Hamas emerge from years of isolation.

Morsi warned that a ground operation by Irael will have "repercussions" across the region. "All must realize the situation is different than before, and the people of the region now are different than before and the leaders are different than before," he said at a joint press conference with Turkey's Islamist prime minister, Recep Tayyip Erdogan. Erdogan, like Morsi, leads an Islamist government that has chilly diplomatic ties with Israel.

On Friday, Morsi sent his prime minister to Gaza on a solidarity mission with Hamas. And on Saturday, Tunisia's Foreign Minister Rafik Abdessalem visited Gaza as well.

___

Joe Federman reported from Jerusalem. Associated Press writers Karin Laub in Gaza City and Aya Batrawy in Cairo contributed reporting.

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Wii U Will Launch With 24 Games This Sunday

Assassin’s Creed III

A version of the latest chapter in the Assassin’s Creed saga, a week after it was released on other console.

Click here to view this gallery.

[More from Mashable: Xbox Live Celebrates 10 Years of Connecting Gamers]

Nintendo’s newest console is out this Sunday, and there are already people lining up outside retailers to get one.

There are 24 games available for the Wii U at launch. Some are highly anticipated Nintendo staples, like New Super Mario Brothers U, and some are interesting and creative titles from third-party developers, like Scribblenauts Unlimited and ZombiU. Many games already out on other systems are being released for the Wii U as well, including Assassin’s Creed III and NBA 2K13; some of these games even have extra functionality that’s been added to take advantage of the Wii U GamePad.

[More from Mashable: Competitive Gaming Seeing TV-Levels of Viewership in 2012]

If you don’t see a game in the gallery above that you thought was coming to the Wii U, it’s because many announced games will be available in the “launch window”, a broad period from now until March. That’s when games like Pikmin 3 and LEGO City Undercover will come out.

If you haven’t preordered a Wii U from a large retailer, many places will still have them available at launch day. Expect long lines at larger retailers though.

Are you planning on purchasing a Wii U this weekend, and what games do you most want to buy? Let us know in the comments.

This story originally published on Mashable here.

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Liam Neeson in negotiations for crime thriller “The All Nighter”

LOS ANGELES (TheWrap.com) – Liam Neeson is in negotiations to star in the crime thriller “The All Nighter (AKA Run All Night)” a person familiar with the situation has told TheWrap.

The story follows an aging hit man who, in order to protect his wife and son, must take on his former boss in a single night. He then winds up on the run from the mob and the authorities with his estranged son.

The film is being produced by Vertigo Entertainment‘s Roy Lee, along with Brooklyn Weaver for Warner Bros. which declined to comment. The studio acquired Brad Ingelsby‘s spec script “The All Nighter” in January for a reported six figure sum.

Neeson’s upcoming films include “Non-Stop” and “A Walk Among The Tombstones.” He will also be featured in a voice role in the upcoming film “Lego: The Piece of Resistance.”

Lee is working on a long-list of projects including Spike Lee’s remake of the South Korean thriller, “Oldboy,” which is currently filming. He is also producing the upcoming thriller “The Double Hour”; a feature film based on the hit video game “Deus-Ex Human Revolution”; “Lego: The Piece of Resistance,” and the action thriller “Sleepless Night,” which is also set up at Warner Bros. Weaver’s credits include “Thirteen” and “Picture Book.”

Ingelsby’s upcoming projects as a writer include “The Raid.” In 2008, he made another major spec deal for his revenge thriller “The Low Dweller,” which went to Relativity Media.

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Saudi King has successful back operation: royal court

RIYADH (Reuters) – Saudi Arabia‘s King Abdullah has undergone successful back surgery at a hospital in the capital, Riyadh, to tighten a loose ligament, the royal court said in a statement carried by state media on Sunday.

The stability of Saudi Arabia, the world’s largest oil exporter and a key U.S. ally, is of global concern. The kingdom holds more than a fifth of world crude reserves and is the birthplace of Islam.

“A surgery was performed on the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz, at the National Guard‘s King Abdulaziz Medical City in Riyadh on Saturday … where a loose ligament in the upper back was tightened,” the statement, carried on state television and the SPA news agency, said.

“With God’s help, the surgery ended at 0315 on Sunday morning … and thanks be to God it was successful,” it added in Arabic.

The king, in his late 80s, underwent an operation to tighten ligaments around his third vertebra in October of last year and had two rounds of back surgery in the United States in 2010 after suffering a herniated disc, leading to a three-month recuperation period outside the kingdom.

His heir apparent and brother, Crown Prince Salman, normally acts as his deputy in his absence.

King Abdullah, who took power in 2005 after the death of King Fahd, named Salman heir apparent in June after the death of Crown Prince Nayef bin Abdulaziz. Prince Salman is 13 years younger than Abdullah.

Unlike in European monarchies, the line of succession does not move directly from father to eldest son, but has moved down a line of brothers born to the kingdom’s founder, King Abdulaziz Ibn Saud, who died in 1953.

While it faced some protests from minority Shi’ite Muslims in its Eastern Province, Saudi Arabia avoided the kind of unrest that toppled leaders across the Arab world last year after it introduced generous social spending packages and issued a religious edict banning public demonstrations.

(Reporting by Ali Abdelatti in Cairo,; Writing by Sami Aboudi in Dubai; Editing by Peter Cooney)

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Israel moves on reservists after rockets target cities

GAZA/JERUSALEM (Reuters) – Israeli ministers were on Friday asked to endorse the call-up of up to 75,000 reservists after Palestinian militants nearly hit Jerusalem with a rocket for the first time in decades and fired at Tel Aviv for a second day.

The rocket attacks were a challenge to Israel‘s Gaza offensive and came just hours after Egypt‘s prime minister, denouncing what he described as Israeli aggression, visited the enclave and said Cairo was prepared to mediate.

Israel’s armed forces announced that a highway leading to the Gaza Strip and two roads bordering the enclave would be off-limits to civilian traffic until further notice.

Tanks and self-propelled guns were seen near the border area on Friday, and the military said it had already called 16,000 reservists to active duty.

Prime Minister Benjamin Netanyahu convened senior cabinet ministers in Tel Aviv after the rockets struck to decide on widening the Gaza campaign.

Political sources said ministers were asked to approve the mobilization of up to 75,000 reservists, in what could be preparation for a possible ground operation.

No decision was immediately announced and some commentators speculated in the Israeli media the move could be psychological warfare against Gaza’s Hamas rulers. A quota of 30,000 reservists had been set earlier.

Israel began bombing Gaza on Wednesday with an attack that killed the Hamas military chief. It says its campaign is in response to Hamas missiles fired on its territory. Hamas stepped up rocket attacks in response.

Israeli police said a rocket fired from Gaza landed in the Jerusalem area, outside the city, on Friday.

It was the first Palestinian rocket since 1970 to reach the vicinity of the holy city, which Israel claims as its capital, and was likely to spur an escalation in its three-day old air war against militants in Gaza.

Rockets nearly hit Tel Aviv on Thursday for the first time since Saddam Hussein’s Iraq fired them during the 1991 Gulf War. An air raid siren rang out on Friday when the commercial centre was targeted again. Motorists crouched next to cars, many with their hands protecting their heads, while pedestrians scurried for cover in building stairwells.

The Jerusalem and Tel Aviv strikes have so far caused no casualties or damage, but could be political poison for Netanyahu, a conservative favored to win re-election in January on the strength of his ability to guarantee security.

“The Israel Defence Forces will continue to hit Hamas hard and are prepared to broaden the action inside Gaza,” Netanyahu said before the rocket attacks on the two cities.

Asked about Israel massing forces for a possible Gaza invasion, Hamas spokesman Sami Abu Zuhri said: “The Israelis should be aware of the grave results of such a raid and they should bring their body bags.”

Officials in Gaza said 28 Palestinians had been killed in the enclave since Israel began the air offensive with the declared aim of stemming surges of rocket strikes that have disrupted life in southern Israeli towns.

The Palestinian dead include 12 militants and 16 civilians, among them eight children and a pregnant woman. Three Israelis were killed by a rocket on Thursday. A Hamas source said the Israeli air force launched an attack on the house of Hamas’s commander for southern Gaza which resulted in the death of two civilians, one a child.

SOLIDARITY VISIT

A solidarity visit to Gaza by Egyptian Prime Minister Hisham Kandil, whose Islamist government is allied with Hamas but also party to a 1979 peace treaty with Israel, had appeared to open a tiny window to emergency peace diplomacy.

Kandil said: “Egypt will spare no effort … to stop the aggression and to achieve a truce.”

But a three-hour truce that Israel declared for the duration of Kandil’s visit never took hold. Israel said 66 rockets launched from the Gaza Strip hit its territory on Friday and a further 99 were intercepted by the Iron Dome anti-missile system.

Israel denied Palestinian assertions that its aircraft struck while Kandil was in the enclave.

Israel Radio’s military affairs correspondent said the army’s Homefront Command had told municipal officials to make civil defence preparations for the possibility that fighting could drag on for seven weeks. An Israeli military spokeswoman declined to comment on the report.

The Gaza conflagration has stoked the flames of a Middle East already ablaze with two years of Arab revolution and a civil war in Syria that threatens to leap across borders.

It is the biggest test yet for Egypt’s new President Mohamed Mursi, a veteran Islamist politician from the Muslim Brotherhood who was elected this year after last year’s protests ousted military autocrat Hosni Mubarak.

Egypt’s Muslim Brotherhood are spiritual mentors of Hamas, yet Mursi has also pledged to respect Cairo’s 1979 peace treaty with Israel, seen in the West as the cornerstone of regional security. Egypt and Israel both receive billions of dollars in U.S. military aid to underwrite their treaty.

Mursi has vocally denounced the Israeli military action while promoting Egypt as a mediator, a mission that his prime minister’s visit was intended to further.

A Palestinian official close to Egypt’s mediators told Reuters Kandil’s visit “was the beginning of a process to explore the possibility of reaching a truce. It is early to speak of any details or of how things will evolve”.

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-2009, killed more than 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

Tunisia’s foreign minister was due to visit Gaza on Saturday “to provide all political support for Gaza” the spokesman for the Tunisian president, Moncef Marzouki, said in a statement.

The United States asked countries that have contact with Hamas to urge the Islamist movement to stop its rocket attacks.

Hamas refuses to recognize Israel’s right to exist. By contrast, Palestinian President Mahmoud Abbas, who rules in the nearby West Bank, does recognize Israel, but peace talks between the two sides have been frozen since 2010.

Abbas’s supporters say they will push ahead with a plan to have Palestine declared an “observer state” rather than a mere “entity” at the United Nations later this month.

(Additional reporting by Maayan Lubell, Jeffrey Heller and Crispian Balmer in Jerusalem; Writing by Jeffrey Heller; Editing by Giles Elgood)

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Head vs. heart: Egypt's Gaza dilemma

The hostilities threatening to escalate into all-out war between Israel and Palestinian militants in Gaza concern the two antagonists first and foremost, but the course the fighting takes is likely to be equally consequential for Egyptian President Mohammed Morsi – and for his relations with the United States.

Egypt’s Islamist president finds himself pulled in competing directions by the head and the heart. The fighting this week – the result of heavy Israeli retaliation for escalating rocket fire from Gaza into southern Israel – has the Islamist Mr. Morsi in a tight spot: caught between his co-religionists across the border in Gaza, on one side, and Washington, upon which a struggling Egypt relies for economic and military assistance, on the other.

For some Middle East analysts, this could be a moment for Morsi to emerge and establish himself as a leader to be reckoned with in the unstable and leaderless post-Awakening Arab world. But successfully maneuvering this moment will take time. And with Israeli soldiers amassing on Gaza’s border, the analysts add, it’s unclear whether Morsi will have the chance to even take the leadership test the situation presents.

IN PICTURES: Gaza: battleground and daily life under Hamas' rule

“Morsi is definitely between the proverbial rock and hard place, but if he can pull together the elements to convince Hamas to stop the rockets … and he can defuse this situation, then I think he can emerge as a leader in the region,” says Aaron David Miller, a Middle East scholar at the Woodrow Wilson International Center in Washington. “But he needs time and space to try to do it, and I’m not sure the Israelis are going to allow him that time.”

The sudden flare-up involving Gaza and its Islamist leaders is also testing US influence in a region where the Arab Awakening has deposed a number of autocratic leaders more disposed to upholding a US-led system of security and stability – including former Egyptian President Hosni Mubarak – in favor of Islamist-led governments.

Morsi hails from the Muslim Brotherhood, as does Hamas, the militant Palestinian organization that governs Gaza. The rockets crashing into southern Israel have been lobbed by a collection of militant Islamist groups operating in Gaza, including some aligned with Iran. But after the Israelis launched retaliatory air strikes, including a strike that killed the Hamas military leader, Ahmed Jabari, Hamas has continued the barrage of rocket fire into Israel and the fighting has largely boiled down to a battle between Israel and Hamas.

Morsi has made his sympathies clear on Egyptian television, lamenting the spilling of Palestinian blood and railing against what he calls the Israeli “aggression.” But privately he is apparently sounding more amenable to trying to convince Hamas to stand down, perhaps by accepting a cease-fire. Morsi has spoken by phone with President Obama and Secretary of State Hillary Rodham Clinton several times this week, US officials say.

This is where Morsi’s head comes in. Egypt depends on the US for some $1.5 billion in annual assistance, not to mention Washington’s advocacy before international financial institutions – including the International Monetary Fund, where Egypt currently has a $4.5 billion loan under consideration.

Egypt’s relations with the US have not sailed through the stormy waters of the Egyptian revolution unscathed. The uncertainty and growing mistrust that now characterize what was once the solid core of US relations with the region were captured by Obama’s comment in an interview in September: “I don’t think we would consider [Egypt] an ally,” the president said, “but we don’t consider them an enemy,” either.

The turbulence has led some analysts to wonder if Morsi might be willing to jeopardize US assistance in order to pursue pro-Islamist – and more overtly anti-Israeli – policies. This week’s deadly violence between Israel and Hamas has led to some speculation that Morsi, who recalled Egypt’s ambassador to Israel, might be willing to take steps jeopardizing the Camp David peace accords between Egypt and Israel.

But experts like Mr. Miller point out that Egypt’s economic stability is linked to Camp David, since receipt of the substantial US aid, and favorable treatment with international financial institutions, are both products of the 1979 accords.

Without a treaty, there’s no special relationship with the US – whether or not it’s as an ally.

Morsi might take a number of steps to convince Hamas to pull back. He could agree to open the Egypt-Gaza border (this possibility is why Israel is pressing Egypt to block any passage of weapons, including replacement rocket launch pads, across its border) and he could work with Saudi Arabia and other patron states to up their financial assistance to Gaza, Miller says.

Morsi might then come out of the Gaza crisis with a much shinier image – the question now may be whether Israel is willing to hold back to see if Egypt’s Islamist leader is capable of this role.

IN PICTURES: Gaza: battleground and daily life under Hamas' rule

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TV, movie features on new Wii U delayed until Dec.

NEW YORK (AP) — Some of the entertainment features on Nintendo’s new Wii U won’t be available when the game machine goes on sale Sunday.

Nintendo didn’t give a reason for the delay in Friday’s news release. In a statement, the company said it wanted the service “to be the best possible experience for all consumers.” Nintendo said it was still working to “make it available as soon as possible.”

The new service, Nintendo TVii, promises to take into account all the ways users watch movies, TV shows and sports.

If you like the TV show “Modern Family,” for example, it will present you with a list of the show’s episodes gathered from available sources, whether that’s Hulu, Netflix or traditional cable TV.

The Wii U is the first major game console to launch in six years. The free TVii — pronounced “tee-veeee” — features were supposed to be available at the time of Wii U’s launch in the U.S. and Canada. Nintendo said the TVii service will now be activated sometime in December.

With TVii the GamePad controller that comes with Wii U is supposed to work as a fancy remote control. Viewers will be able to browse shows to watch or send suggestions to other Wii users. The service also captures scenes from live TV and displays them on the controller’s touch-screen display.

Nintendo also said the ability to watch Amazon, Hulu and Netflix content on the Wii U won’t be available for a few more weeks. These are separate apps, though the content services will also be available through the Wii U app.

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New Variety owner Jay Penske slashes one-quarter staff

LOS ANGELES (TheWrap.com) – Jay Penske, the new owner of Variety, laid off nearly a quarter of the company’s staff on Thursday.

Between 20 and 25 employees from the struggling Hollywood trade’s circulation, database and conference departments were laid off. The editorial staff was not affected. Variety had about 120 employees before Thursday’s cuts.

“Without a doubt, this is a challenging day, and I particularly wanted to notify and acknowledge those of you who will be saying goodbye to valued colleagues and friends,” Penske, the CEO of Penske Media Corporation wrote in a memo obtained by the industry blog Deadline, which he also owns. “As we look ahead, Variety’s business holds almost limitless potential and I will remain available to answer any questions you might have regarding today’s changes and our future.”

Penske bought the paper last month at the fire-sale price of $ 25 million. In his memo, Penske said that he planned to invest in the editorial and digital departments while trimming the database services and business branch.

The jobs eliminated came from the LA411 and NY411 units – directories for production resources – and its administration and conference units, according to the memo. Deadline said that the cuts totaled 20 to 25 employees.

He also cut circulation staff, in what may presage a move to cut back on the paper’s printing schedule. Variety currently prints daily during the week and a weekly edition on Friday.

TheWrap previously reported that Penske planned to maintain the print edition and drop the paywall that blocked non-subscribers from reading Variety’s site, placing it in direct competition with competitors like the Hollywood Reporter, TheWrap and its corporate sister Deadline. The paywall has since been torn down.

Neither Penske nor Variety returned calls or emails from TheWrap requesting comment.

Here’s the full memo:

Dear Team

For the past six months, we have diligently reviewed every aspect of the Variety business. And in more recent weeks, we have outlined to Variety senior management an exciting and also aggressive trajectory for the brand’s resurgence. These steps will include substantial further investment in editorial and digital, but will unfortunately require some immediate eliminations in the following business units: LA411/NY411, Circ, Systems, Conferences, and Admin.

Without a doubt, this is a challenging day, and I particularly wanted to notify and acknowledge those of you who will be saying goodbye to valued colleagues and friends. As we look ahead, Variety’s business holds almost limitless potential and I will remain available to answer any questions you might have regarding today’s changes and our future. As always, please don’t hesitate to reach out to me, or see Tammy Chase to arrange an appointment.

Sincerely,

Jay Penske

CEO

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Five Republican governors reject state-run health markets

WASHINGTON (Reuters) – Five Republican governors rejected on Friday a major provision of President Barack Obama‘s healthcare reform law that calls on states to set up online health insurance markets where consumers can purchase private coverage at federally subsidized rates.

That makes it likely that the federal government will establish its own markets, known as healthcare exchanges, in those states and potentially supplant state control of private individual insurance markets.

But in what could be a sign of thawing relations between administration officials and some state Republican leaders, three of the five governors — representing Ohio, Michigan and Florida — expressed a willingness to work with Washington as reforms inch toward a January 1, 2014, deadline for full operation.

Wisconsin Governor Scott Walker and Georgia Governor Nathan Deal said they would not cooperate at all.

Missouri Governor Jeremiah Nixon, a Democrat, said the state would not run its own exchange but did not take a position on a federal partnership. He said the state legislature could take up the issue early next year.

Meanwhile, Indiana Governor Mitch Daniels, a Republican, deferred to the state’s governor-elect, Mike Pence, also Republican, who has said he intends to oppose both a state-based exchange and a federal partnership after assuming office next year.

The announcements came a day after the U.S. Department of Health and Human Services extended its deadline for states to say whether they would operate their own exchanges. The positions reveal an emerging split between Republican governors who had appeared to form a united front against healthcare reform before Obama’s November 6 reelection ensured the law’s implementation.

Many governors have dragged their feet on implementing the Patient Protection and Affordable Care Act, hoping Republican Mitt Romney would defeat Obama and repeal the law. They are now deciding whether to set up their own exchanges, accept a partnership with the federal government or allow Washington to take control.

“What this reflects is the difficult position of some of these governors,” said Jennifer Tolbert of the nonpartisan Kaiser Family Foundation, which tracks healthcare issues. “While they may oppose the new reform law and its requirements, some also don’t want the federal government to come in and run the exchange and take over that responsibility.”

Friday was the original deadline for states to tell the administration whether they plan to operate their own exchanges and file blueprints to show how they would do it. The administration extended the deadline to December 14 after governors requested more time to comply.

The Affordable Care Act is scheduled to extend health coverage to more than 30 million uninsured Americans beginning January 1, 2014. About half of those would be covered by exchanges, designed to allow working families to purchase coverage at subsidized rates.

A MEETING IN FLORIDA?

At least 17 states already have told the administration that they will create their own exchanges, according to sources familiar with the situation. An HHS spokeswoman could not confirm that number. Experts predicted the total could rise to 20 by the time the new deadline passes.

As many as 15 states from Georgia and Texas to Wyoming and Maine opposed the exchanges outright before the election.

But some of those, including Nebraska, have since opted to work with the federal government on an exchange. Others say they are still deliberating. Over the past week, Kansas has rejected all participation in an exchange while Nebraska has agreed to seek a federal partnership.

States that reject the call for state-run exchanges but opt for a federal partnership could better ensure smooth market operations for residents than states that reject exchanges outright, experts say. They could also have an easier time adopting a state-based operation in coming years.

All five Republican governors who announced their plans on Friday complained that the Obama administration has been slow to release details about how exchanges should operate and complained that the law has proved too inflexible to meet the needs of individual states.

“At this point, based on the information we have, states do not have any flexibility to build and manage exchanges in ways that respond to unique needs of their citizens or markets,” Ohio Governor John Kasich said in a November 16 letter to the Centers for Medicare and Medicaid Services, an HHS agency that is implementing the law’s exchange provision.

“Regardless of who runs the exchange, the end product is the same,” he added.

But Kasich and Michigan Governor Rick Snyder both suggested their positions could change as details emerge.

Florida’s Republican governor, Rick Scott, said in a letter to HHS Secretary Kathleen Sebelius that he could not see how an exchange would improve healthcare access while lowering costs for Florida residents.

But Scott said Florida was willing to “partner” with the administration to find a solution. He invited Sebelius to a meeting to discuss the issues.

States have until February 15, 2013, to say whether they would prefer a federal partnership exchange.

Whatever the choice, Sebelius has pledged that Americans in all 50 states will have access to coverage through exchanges when the Affordable Care Act comes into full force in 2014.

(Reporting by David Morgan; Additional reporting by Karen Pierog; Editing by Leslie Adler and Tim Dobbyn)

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