The Time Zynga’s CEO Almost Cried to Save His Failing Business

With the company stock at less than $ 3 per share and having just announced recent lay-offs including the loss of its COO, you might verge on tears too while making a plea to the one man who could save your ailing gaming company. So, when put that way, maybe it’s not so that embarrassing that “tears nearly welled up” in Zynga CEO Mark Pincus‘s eyes in a meeting with Apple director Bill Campbell, as The Wall Street Journal‘s Evelyn M. Rusli reports. Campbell, who has coached CEOs before had been called in by one of Zynga’s investor to (hopefully) help him through this rough patch. During that meeting Pincus was, in Campbell’s words, “discouraged” and “felt terrible about what was happening; he felt the turmoil.” So much so that during this business meeting the CEO of the company almost cried.

RELATED: Zynga’s Founder Mark Pincus: The Ultimate One Percenter

That’s not embarrassing. It is just very sad. 

RELATED: Games in Google+ Should Scare Facebook

But maybe this is karma. Zynga never had a warm and fuzzy culture, with the company’s “Do Evil” motto, a play on Google’s Do No Evil motto. “I would venture to say it is one of the most evil places I’ve run into, from a culture perspective and in its business approach. I’ve tried my best to make sure that friends don’t let friends work at Zynga,” a former senior employee told SF Weekly‘s Peter Jamison. Rusli described it as a “messy and ruthless war,” in a DealBook post. “Employees log long hours, managers relentlessly track progress, and the weak links are demoted or let go,” she wrote. These internal struggles are some of the reasons Pincus went to Campbell in the first place, says Rusli. Though we would never say Pincus deserves to cry. We imagine some hard working game-maker underlings cried over these tough working conditions or when they got let go for not performing—at least on the inside. You know what they say: A tear for a tear. 

RELATED: Zynga’s Stockholders Should Be Very Happy with Facebook Right Now

But hopefully (for Pincus’s pride) that meeting with Campbell got the tears out of the way. Following his coaching, Zynga did some “internal reshuffling” and is trying to reposition the company better to make mobile games. The results of that, says Rusli, “remain to be seen.” The game-maker has a long way to climb back up from the 75 percent value it has lost since going public. 

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Lady Gaga tweets some racy images before concert

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

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

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

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

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

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

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

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EU drug regulator OKs Novartis' meningitis B shot

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

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

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

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

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

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

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Body found near burned Gulf oil rig

NEW ORLEANS (AP) -- Divers hired by the owner of an oil platform in the Gulf of Mexico that caught fire recovered a body near the site Saturday evening, according to the U.S. Coast Guard and the rig's owner.

Coast Guard spokesman Carlos Vega said late Saturday that the unidentified person was found by divers hired by Houston-based Black Elk Energy who were inspecting the platform. Vega said the Coast Guard was turning over the remains to local authorities.

John Hoffman, the president and CEO of Black Elk Energy, said in an email late Saturday that the body is apparently that of one of two crew members missing since an explosion and fire on the oil platform Friday morning. Hoffman said the body was found by a contracted dive vessel at 5:25 p.m. CST.

"Divers will continue to search for the second missing worker," Hoffman wrote. "Our thoughts and prayers are with the families."

Hoffman said the body was found close to the leg of the platform, near where the explosion occurred, in about 30 feet of water. He said the missing men were employees of oilfield contractor Grand Isle Shipyard.

"We have notified next of kin of all individuals involved, but in respect for their families and their privacy, we will not be releasing their names," GIS CEO Mark Pregeant said in a statement, according to WWL-TV in New Orleans.

The news came shortly after the Coast Guard suspended a 32-hour-long search for the two missing workers that covered 1,400 square miles (3626 sq. kilometers) near the oil platform, located about 20 miles (40 kilometers) southeast of Grand Isle, La.

"We have saturated the search area several times — the 1400-square-foot area," Vega said. "We saw no signs of life. We have suspended the search and it is pending further development. If we receive any credible information that there are signs of life, we can resume the search at any time."

Four other workers who were severely burned remained at Baton Rouge General Medical Center on Saturday night.

Coast Guard Chief Petty Officer Bobby Nash said the Guard's search was ended early Saturday evening. Helicopters and a fixed-wing aircraft had been searching by air, while cutters and boat crews searched the sea.

The blaze erupted Friday morning while workers were using a torch to cut an oil line on the platform, authorities said.

Pregeant stressed in his statement that the cause of the fire and explosion is unknown, and said "initial reports that a welding torch was being used at the time of the incident or that an incorrect line was cut are completely inaccurate."

Four workers were severely burned, though Black Elk Energy spokeswoman Leslie Hoffman said their burns were not as extensive as initially feared.

Officials at Baton Rouge General Medical Center said Saturday that two men remained in critical condition, while two men remained in serious condition. The four, being treated in a burn unit, are also employees of Grand Isle Shipyard and are from the Philippines. The hospital said it and Grand Isle Shipyard are trying to reach the men's families in the Philippines.

Grand Isle Shipyard employed 14 of the 22 workers on the platform at the time of the incident, WWL-TV reported. A man who answered the phone at the company's Galliano, La., office on Saturday said no one was available to comment.

Meanwhile, officials said no oil was leaking from the charred platform, a relief for Gulf Coast residents still weary two years after the BP oil spill illustrated the risk that offshore drilling poses to the region's ecosystem and economy.

Friday's fire sent an ominous black plume of smoke into the air reminiscent of the deadly 2010 Deepwater Horizon explosion that transformed the oil industry and life along the U.S. Gulf Coast

James A. Watson, the director of Louisiana's Bureau of Safety and Environmental Enforcement, said in a statement Saturday that his agency had begun "an investigation into the explosion and fire aboard a Black Elk Energy production platform offshore Louisiana."

"BSEE is committed to determining the direct and indirect causes of the explosion and will take appropriate enforcement action," he said.

The Deepwater Horizon blaze killed 11 workers and led to an oil spill that took months to bring under control. Friday's fire came a day after BP PLC agreed to plead guilty to a raft of charges in the 2010 spill and pay a record $4.5 billion in penalties.

There were a few important differences between this latest blaze and the one that touched off the worst offshore spill in U.S. history: Friday's fire was put out within hours, while the Deepwater Horizon burned for more than a day, collapsed and sank.

The Black Elk Energy facility is a production platform in shallow water, rather than an exploratory drilling rig like the Deepwater Horizon looking for new oil on the seafloor almost a mile (1.6 kilometers) deep.

The depth of the 2010 well blow-out proved to be a major challenge in bringing the disaster under control.

The Black Elk Energy platform is in 56 feet (17 meters) of water — a depth much easier for engineers to manage if a spill had happened.

A sheen of oil about a half-mile (800 meters) long and 200 yards (180 meters) wide was reported on the Gulf surface, but officials believe it came from residual oil on the platform.

"It's not going to be an uncontrolled discharge from everything we're getting right now," Coast Guard Capt. Ed Cubanski said.

Leslie Hoffman, the Black Elk Energy spokeswoman, said Saturday that there were still no signs of any leak or spill at the platform site.

BP's blown-out well spewed millions of gallons (liters) of oil into the sea, about 50 miles (80 kilometers) southeast of the mouth of the Mississippi River on the east side of the river delta. The crude fouled beaches, marshes and rich seafood grounds.

After Friday's blaze, 11 people were taken by helicopter to area hospitals or for treatment on shore by emergency medical workers.

The production platform is on the western side of the Mississippi River delta. The Coast Guard said more than 20 people were aboard the platform at the time of the fire.

"This platform was not in operation and had been shut in since mid-August," Black Elk officials said in a news release Saturday.

Cubanski said the platform appeared to be structurally sound. He said only about 28 gallons (106 liters) of oil were in the broken line on the platform.

David Smith, a spokesman for the Interior Department's Bureau of Safety and Environmental Enforcement in Washington, said an environmental enforcement team was dispatched from a Gulf Coast base by helicopter soon after the Coast Guard was notified of the emergency. Smith said the team would scan for any evidence of oil spilling and investigate the cause of the explosion.

Black Elk Energy is an independent oil and gas company. The company's website says it holds interests in properties in Texas and Louisiana waters, including 854 wells on 155 platforms.

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Associated Press Writers Kevin McGill in New Orleans and Jeff Amy in Jackson, Miss., contributed to this story.

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Japan set for polls; no clear winner likely

TOKYO (AP) — Prime Minister Yoshihiko Noda was poised to dissolve Japan's parliament Friday, setting the stage for elections next month that will likely result in a weak coalition government with differing policies on the country's economic woes, territorial disputes and other problems.

Polls show that nearly half of the electorate is undecided on which party to support but it's clear that the ruling Democrats — in power for the last three years — are very likely to lose. That sets the stage for Japan to get its seventh prime minister in seven years.

Media reports say the elections will be held Dec. 16.

Although the opposition Liberal Democratic Party, which led Japan for most of the post-World War II era, would win the most seats in the 480-seat lower house, it would fall far short of a majority if elections were held now, according to the polls.

With no party a clear winner, Japan will end up with a coalition government made up of parties with differing policies and priorities. This could hinder decision-making as Japan wrestles with a two-decade economic slump, cleanup from last year's nuclear disaster, growing national debt and a rapidly aging population — not to mention a festering territorial dispute with China that is hurting business ties with its biggest trading partner.

"It's unlikely that the election will result in a clear mandate for anybody," said Koichi Nakano, a political science professor at Sophia University. "So in that sense, there's still going to be a lot of muddling through."

Japan must also decide whether it will follow through with plans to phase out nuclear power by 2040 — a move many in the LDP oppose.

In a sudden turn of events, Noda abruptly said Wednesday in a one-on-one debate with LDP chief Shinzo Abe that he would dissolve parliament Friday if the opposition would agree to key reforms, including shrinking the size of parliament.

Abe, who said his party would go along with the measures, could get a second stab at being prime minister after his one-year stint in 2006-2007 if the LDP wins the most seats in the election.

A staunch nationalist, Abe has taken a strong stance against China in the dispute over a cluster of uninhabited islands in the East China Sea controlled by Japan but also claimed by China and Taiwan. Abe suddenly quit as prime minister in 2007, citing health problems that he says are no longer an issue.

"The day has finally come. Our battle starts today. Our mission to the people is to win this (election) battle," Abe told reporters earlier Friday.

Noda's Democratic Party of Japan won a landslide victory in 2009 elections amid high hopes for change, ousting the conservative, business-friendly LDP, which had ruled Japan nearly continuously since 1955.

But those hopes have been dashed amid widespread disgust with the DPJ's failure to keep campaign promises and the government's handling of the Fukushima nuclear crisis triggered by the March 11, 2011, earthquake and tsunami.

Voters are also unhappy with Noda's centerpiece achievement during his nearly 15 months in office: passing legislation to double the nation's 5 percent sales tax by 2015. He says the increase is necessary to meet growing social security costs as the country grays.

Recent polls show about 25-30 percent of voters back the LDP, while support for the DPJ is in the low teens. With scattered support for a few other parties, that leaves nearly half of the public undecided, meaning the outcome is still quite unclear.

"I really don't know who to vote for," said 62-year-old taxi driver Tetsuo Suzuki. "I voted for the DPJ in the last election, but they couldn't seem to get things done. I don't really want to go back to the LDP, either."

"Japan doesn't seem as perky as it used to be," he said, ticking off the economy and the territorial dispute with China as the two most pressing issues. "We want a strong leader who won't bend his principles."

Tapping into that voter dismay, outspoken leaders in the two biggest cities in Japan have decided to form their own national political parties, but they may not have enough time to get organized for the election.

The nationalistic governor of Tokyo, Shintaro Ishihara — who stirred up the flap with China by saying the Tokyo government would buy and develop the disputed islands called Senkaku by Japan and Diaoyu by China — resigned recently to create the Sunrise Party.

Toru Hashimoto, the brash, young mayor of Osaka, is working to draw up candidates for the newly formed Japan Restoration Party, although he said he himself will not run in the elections. Recent polls show his party has support in the 5 percent range.

The two men are in discussions, seeking a possibility to merge their parties and form a so-called "third force" to counter the LDP and DPJ, but it appears they are having difficulty reconciling some of their differing policy views, including on nuclear power.

Japan is going through a messy period of political transition with its merry-go-round of prime ministers and the emergence of various parties to challenge the long-dominant LDP, experts say.

"The era of one-party dominance is clearly over and behind us," said the professor, Nakano. "We know what we are transiting from, but we don't know where we are going."

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AP writer Mari Yamaguchi in Tokyo contributed to this report.

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4 Latin Grammys to Jesse & Joy, Juanes wins too

LAS VEGAS (AP) — Mexican brother-sister duo Jesse & Joy and their pop hit "Corre!" ran away with four awards at the 13th Annual Latin Grammys, but Colombian rockero Juanes danced away with the award for best album for "MTV Unplugged" Thursday night.

"What a great joy. Thank God, and all the fans," Juanes said as he dragged Dominican mereguero Juan Luis Guerra, who produced the album, to the stage to accept the mini-gramaphone for best album at the close of the ceremony.

The winner for best new artist, the Mexican DJ trio 3ball MTY, threw down beats with America Sierra and Sky Blu of LMFAO. Pitbull performed "Don't Stop the Party" with dancers in gold spangled bikinis and hot pants. Juanes jammed with legendary guitarist Carlos Santana.

Hosted by actors Cristian De La Fuente and Lucero, the ceremony attracted super-stars from across the world and from dozens of Latin musical genres to the Mandalay Bay Events Center. Just like at a big family party, new faces shared the spotlight with older generations, and traditional styles mixed with electronica and Vegas dancers on stage.

Traditional Mexico met Las Vegas in a colorful number featuring Oaxaca native Lila Downs, Afro-Colombian singer Toto la Momposina and dancers in regional costumes, Carnival masques and skeleton makeup.

Michel Telo, the Brazilian sertanejo or country music singer, performed his hit, "Ai si eu te pego,"with Blue Man Group. Bachata heartthrob Prince Royce sang with veteran Mexican singer-songwriter Joan Sebastian. But the applause was also strong for the 1980s hit, "Yo No Te Pido la Luna," a duet between Spaniard Sergio Dalma and Mexican singer Daniela Romo, sporting a short silver hairdo following her bout with breast cancer.

Jesse & Joy also won for best contemporary pop vocal album for "Con Quien se Queda el Perro" and best short video for "Me vow."

"Thanks to people like Juanes and Juan Luis Guerro who have inspired us. Love and peace," Jesse said.

Guerra, who came into the ceremony as the leading nominee with six bids, won producer of the year for Juanes' album "MTV Unplugged."

Guerra performed "En el Cielo No Hay Hospital," which brought the audience to its feet to dance, and for a standing ovation.

Puerto Rican reggaeton singer Don Omar and Uruguayan alt rockers Cuarteto de Nos won two Latin Grammys each.

Downs won best folkloric album for "Pecados y Milagros." Colombian singer Fonseca won for best tropical fusion album, and Los Tucanes de Tijuana won best norteno album for "365 Dias," the narco-corrido band's 32nd album.

Milly Quezada brought home two statuettes, including best contemporary tropical album for "Aqui estoy yo."

"Long live merengue! Long live the Dominican Republic!" she said as she accepted the award. She also thanked Guerra, who helped produce the album.

Cuban-American jazz trumpeter Arturo Sandoval won three Latin Grammys, two for "Dear Diz (Every Day I Think of You)," but said these awards was just exciting as his first.

"The emotion is the same because one puts the same effort into each recording and the fact that the work is received well and respected by the public is very satisfying," he said.

The Latin Grammy celebration kicked off Wednesday with a tribute to Person of the Year winner, Caetano Veloso, one of the founders of the Tropicalismo movement.

The Brazilian singer, composer and activist sang in Spanish and Portuguese before Pitbull and Sensato closed with "Crazy People."

The event was broadcast live on Univision.

Interactive: http://hosted.ap.org/interactives/2012/latin-grammys/

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Diabetes rates rocket in Oklahoma, South

NEW YORK (AP) — The nation's diabetes problem is getting worse, and the biggest jump over 15 years was in Oklahoma, according to a new federal report issued Thursday.

The diabetes rate in Oklahoma more than tripled, and Kentucky, Georgia and Alabama also saw dramatic increases since 1995, the study showed.

The South's growing weight problem is the main explanation, said Linda Geiss, lead author of the report by the Centers for Disease Control and Prevention study.

"The rise in diabetes has really gone hand in hand with the rise in obesity," she said.

Bolstering the numbers is the fact that more people with diabetes are living longer because better treatments are available.

The disease exploded in the United States in the last 50 years, with the vast majority from obesity-related Type 2 diabetes. In 1958, fewer than 1 in 100 Americans had been diagnosed with diabetes. In 2010, it was about 1 in 14.

Most of the increase has happened since 1990.

Diabetes is a disease in which the body has trouble processing sugar; it's the nation's seventh leading cause of death. Complications include poor circulation, heart and kidney problems and nerve damage.

The new study is the CDC's first in more than a decade to look at how the nationwide boom has played out in different states.

It's based on telephone surveys of at least 1,000 adults in each state in 1995 and 2010. Participants were asked if a doctor had ever told them they have diabetes.

Not surprisingly, Mississippi — the state with the largest proportion of residents who are obese — has the highest diabetes rate. Nearly 12 percent of Mississippians say they have diabetes, compared to the national average of 7 percent.

But the most dramatic increases in diabetes occurred largely elsewhere in the South and in the Southwest, where rates tripled or more than doubled. Oklahoma's rate rose to about 10 percent, Kentucky went to more than 9 percent, Georgia to 10 percent and Alabama surpassed 11 percent.

An official with Oklahoma State Department of Health said the solution is healthier eating, more exercise and no smoking.

"And that's it in a nutshell," said Rita Reeves, diabetes prevention coordinator.

Several Northern states saw rates more than double, too, including Washington, Idaho, Montana, Wyoming, South Dakota, Minnesota, Missouri, Ohio and Maine.

The study was published in CDC's Morbidity and Mortality Weekly Report.

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Associated Press writer Ken Miller in Oklahoma City contributed to this report.

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Online:

CDC report: http://tinyurl.com/cdcdiabetesreport

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Signs mount of possible Israeli invasion of Gaza

JERUSALEM (AP) — Israeli aircraft targeted rocket launching operations of Gaza militants early Friday as troops, tanks and armored personnel carriers massed near the Palestinian territory, signaling a ground invasion might be growing near.

Fighting between the two sides escalated sharply Thursday with a first-ever militant attack on the Tel Aviv area, menacing Israel's heartland. No casualties were reported there, but three people died in the country's rocket-scarred south when a projectile slammed into an apartment building.

The death toll in the densely populated Palestinian territory climbed to 19, including five children, according to Palestinian health officials, as waves of Israeli fighter planes and drones sent missiles hurtling down on suspected weapons stores and rocket-launching sites.

Early Friday, 85 missiles exploded within 45 minutes in Gaza City, sending black pillars of smoke towering above the coastal strip's largest city. The military said it was targeting underground rocket launching sites.

One missile hit the Interior Ministry, a symbol of Hamas power, and another hit an empty house belonging to a senior Hamas commander. Those strikes, together with an attack on a generator building near the home of Gaza's Hamas prime minister, Ismail Haniyeh, signaled that Israel was expanding its offensive beyond military targets.

The fighting has already widened the instability gripping a region in the throes of war and regime upheavals. It has straining already frayed relations with Egypt, which was sending its prime minister to Gaza later Friday in a show of solidarity with its militant Hamas rulers.

Israel and Hamas had largely observed an informal truce since Israel's devastating incursion into Gaza four years ago, but rocket fire and Israeli airstrikes on militant operations didn't halt entirely. The latest flare-up exploded into major violence Wednesday when Israel assassinated Hamas' military chief, following up with a punishing air assault meant to cripple the militants' ability to terrorize Israel with rockets.

The Israeli military reported early Friday that its aircraft had struck more than 350 targets since the beginning of its operation against Hamas' rocket operations.

After nightfall Thursday, several explosions shook Gaza City several minutes apart, a sign the strikes were not letting up. The military said the targets were about 70 underground rocket-launching sites.

The Israeli offensive has not deterred the militants from striking back with more than 400 rockets aimed at southern Israel. For the first time, they also unleashed the most powerful weapons in their arsenal — Iranian-made Fajr-5 rockets capable of reaching Tel Aviv.

The two rockets that struck closest to Tel Aviv appear to have landed in the Mediterranean Sea, defense officials said, and another hit an open area on Tel Aviv's southern outskirts.

No injuries were reported, but the rocket fire — the first in the area from Gaza — sowed panic in Tel Aviv and made the prospect of a ground incursion more likely. The government later approved the mobilization of up to 30,000 reservists for a possible invasion.

Israeli Prime Minister Benjamin Netanyahu said the army was hitting Hamas hard with what he called surgical strikes, and warned of a "significant widening" of the Gaza operation. Israel will "continue to take whatever action is necessary to defend our people," said Netanyahu, who is up for re-election in January.

At least 12 trucks were seen transporting tanks and armored personnel carriers toward Gaza late Thursday, and buses carrying soldiers headed toward the border area. Israeli TV stations said a Gaza operation was expected on Friday, though military officials said no decision had been made.

"We will continue the attacks and we will increase the attacks, and I believe we will obtain our objectives," said Lt. Gen. Benny Gantz, Israel's military chief.

An Israeli ground offensive could be costly to both sides. In the last Gaza war, Israel devastated large areas of the territory, setting back Hamas' fighting capabilities but also paying the price of increasing diplomatic isolation because of a civilian death toll numbering in the hundreds.

The current round of fighting is reminiscent of the first days of that three-week offensive against Hamas. Israel also caught Hamas off guard then with a barrage of missile strikes and threatened to follow up with a ground offensive.

Much has changed since then.

Israel has improved its missile defense systems, but it is facing a more heavily armed Hamas. Israel estimates the militants have 12,000 rockets, including more sophisticated weapons from Iran and from Libyan stockpiles plundered after the fall of Moammar Gadhafi's regime there last year.

Also, regional alignments have changed dramatically since the last Gaza war. Hamas has emerged from its political isolation as its parent movement, the region-wide Muslim Brotherhood, has risen to power in several countries in the wake of last year's Arab uprisings, particularly in Egypt.

Egypt recalled its ambassador to protest the Israeli offensive and ordered its prime minister to lead a senior delegation to Gaza on Friday in a show of support for Hamas.

At the same time, while relations with Israel have cooled since the toppling of longtime Egyptian leader Hosni Mubarak, Islamist President Mohammed Morsi has not brought a radical change in Egypt's policy toward Israel. He has promised to abide by Egypt's 1979 peace deal with Israel and his government has continued contacts with Israel through its non-Brotherhood members.

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Laub reported from Gaza City, Gaza Strip.

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US or China? Clinton says Australia needn't choose

ADELAIDE, Australia (AP) — U.S. Secretary of State Hillary Clinton assured Australians they do not have to choose between the United States, their most important security ally, and China, their primary trading partner, as she ended a visit to the important Pacific ally Thursday.

Clinton and Defense Secretary Leon Panetta were attending an annual security summit with their Australian counterparts, Foreign Minister Bob Carr and Defense Minister Stephen Smith, aimed at deepening military links as the United States shifts its might to the Asia-Pacific.

She used her final speech in Australia in the city of Adelaide, the heartland of Australia's military manufacturing industry, to reject criticisms that Australia's enhanced ties with the United States would come at the cost of its burgeoning relationship with China.

"I know there are some who present a false choice: That Australia needs to choose between its longstanding ties to the United States and its emerging links with China," Clinton said.

"Well, that kind of zero-sum thinking only leads to negative-sum results," she added.

Clinton's comments followed a speech on Wednesday by former prime minister Paul Keating, a hero of the ruling Labor Party, in which he said Australia's "former sphere of influence is diminishing."

Keating blamed a lack of foreign policy independence, arguing that Australia had "rolled backed into an easy accommodation with the foreign policy objectives of the United States."

Speaking hours before China's new leadership was announced in Beijing, Clinton said the United States supported Australia's foreign policy objectives in the Asia-Pacific region.

"We support Australia having strong multifaceted ties with every nation in the Asia-Pacific, indeed in the world, including China, just as we seek the same," she said.

"The Pacific is big enough for all of us," she added.

Clinton made one of the longest journeys of her four years as secretary of state to fly for a jading 31 hours from the United States to the Australian west coast city of Perth to attend the security summit on Wednesday.

The summit agreed that Australia will host two U.S. space surveillance systems and to expand the number of U.S. Marines rotating through an Australian training hub from 200 this year to 1,100 by 2014. Up to 2,500 Marines will eventually use the facility.

The U.S. military also plans to make greater use of Australia's Indian Ocean naval base and northern warplane bombing ranges under agreements announced by President Barack Obama a year ago that have riled China.

Carr noted that the agreement reached on Wednesday included "no language of containment," in a reference to accusation that the United States plans to contain China's growth.

Speaking at a shipyard where U.S. contractors are involved in the $8 billion construction of three destroyers for the Australian navy, Clinton emphasized the economic spin-offs for both countries from the U.S.-Australian alliance.

She said the United States was Australia's third-largest trading partner after China and Japan and two-way trade was increasing. The United States was also the biggest investor in Australia with direct investments totaling $136 billion.

She said the security and economic relations between the two countries were both indispensable and must be developed.

"This economic relationship is just as vital to both of our nations' continued strength as our defense partnership because in today's world, power is increasingly measured and exercised in economic terms," she said.

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Erdrich wins National Book Award for fiction

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

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

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

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

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

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

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

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

"We have to remember that," Alexander said.

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

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

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