President Mohamed Morsi of Egypt Said to Prepare Martial Law Decree


Tara Todras-Whitehill for The New York Times


Egyptian protesters stood next to a destroyed barricade near the presidential palace in Cairo on Saturday. More Photos »







CAIRO — Struggling to quell street protests and political violence, President Mohamed Morsi is moving to impose a version of martial law by calling on the armed forces to keep order and authorizing soldiers to arrest civilians, Egyptian state media announced Saturday.




If Mr. Morsi goes through with the plan, it would represent a historic role reversal. For decades, Egypt’s military-backed authoritarian presidents had used martial law to hold on to power and to punish Islamists like Mr. Morsi, who spent months in jail under a similar decree.


A turn back to the military would also come just four months after Mr. Morsi managed to pry political power out of the hands of the country’s powerful generals, who led a transitional government after the ouster of the longtime strongman Hosni Mubarak.


The flagship state newspaper Al Ahram reported that Mr. Morsi “will soon issue a decision for the participation of the armed forces in the duties of maintaining security and protection of vital state institutions.” The military would maintain its expanded role until the completion of a referendum on a draft constitution next Saturday and the election of a new Parliament expected two months after that.


Imposing martial law would represent the steepest escalation yet in the political battle between Egypt’s new Islamist leaders and their secular opponents over the Islamist-backed draft constitution — a standoff that has already threatened to derail Egypt’s promised transition to a constitutional democracy.


Calling in the army could overcome the danger of protests or violence that might disrupt the planned referendum and the parliamentary election. But resorting to the military to secure the vote could undermine Mr. Morsi’s hopes that a strong vote for the constitution would be seen as a sign of national consensus that could help end the political crisis over the Islamist-backed charter.


Mr. Morsi has not yet formally issued the order reported in Al Ahram, raising the possibility that the newspaper announcement was intended as a warning to his opponents. Although the plan would not fully suspend the civil law, it would nonetheless have the effect of suspending legal rights by empowering soldiers under the control of the defense minister to try civilians in military courts.


There was no sign of military tanks in the streets on Saturday evening, but the military appeared for now to back Mr. Morsi. Soon after the news of the plans, a military spokesman read a statement over state television that echoed the reports of Mr. Morsi’s planned decree.


The military “realizes its national responsibility for maintaining the supreme interests of the nation and securing and protecting the vital targets, public institutions, and the interests of the innocent citizens,” the spokesman said, emphasizing the “sorrow and concern” over recent developments and warning of “divisions that threaten the state of Egypt.”


“Dialogue is the best and sole way to reach consensus that achieves the interests of the nation and the citizens,” the spokesman said. “Anything other than that puts us in a dark tunnel with drastic consequences, which is something that we will not allow.”


Moataz Abdel-Fattah, a former adviser to Egypt’s transitional prime minister who is close to Defense Minister Abdul Fattah el-Sisi, suggested that the generals might have prompted Mr. Morsi to announce the possibility of martial law as a warning to all the political factions to end the crisis.


“The military is saying, ‘Do not let things get so bad that we have to intervene,’ ” Mr. Abdel-Fattah said. “In the short term it is good for President Morsi, but in the long run they are also saying, ‘We belong to the people, and not Mr. Morsi or his opponents.’ ”


The military’s return to the streets at Mr. Morsi’s request would be a turn of events that was almost unimaginable when he took office in June.


The top generals had pushed for months to maintain a role in Egyptian politics and to limit the president’s powers — in part, their supporters argued, as a safeguard against an Islamist takeover.


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Google launches Snapseed photo editor on Android, makes iOS version free












After acquiring the makers of Snapseed in September, Google (GOOG) on Thursday released the popular photo application for Android smartphones and tablets. Google also updated the iOS version of the app to add Google+ integration and some new filters, and it cut the price of the original app from $ 4.99 to free. Snapseed is a simple yet powerful photo editor from Nik Software that allows users to enhance images with various tweaks and gesture-based touch ups, along Instagram-like filters. Snapseed is available now for the iPhone, iPad and Android smartphones and tablets.


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Gadgets News Headlines – Yahoo! News


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Mario Lopez Is Spontaneous, Romantic, Says New Bride Courtney Mazza















12/08/2012 at 03:30 PM EST







Courtney Mazza, Mario Lopez and their daughter, Gia


FameFlynet


There's no lack of spice in the lives of newlyweds Mario and Courtney Lopez.

"The most romantic thing about Mario is his spontaneity," Courtney told PEOPLE on Friday, just under a week after the two tied the knot in Mexico. "He's so spontaneous and it's just fun to be with somebody [like that]."

Mario, 39, explains that he keeps the romance fresh by "taking off for a quick trip or having little quickies here and there," adding, "Kids and jobs and everything else gets in the way, but you can't forget about each other."

As for Courtney, she turns the heat up in the kitchen.

"The most romantic thing about my wife is the meals she cooks when I come home," Mario said, before Courtney added with a laugh, "My grandma did tell me to cook for him in nothing but an apron and stilettos."

When it came to celebrating the couple's Dec. 1 nuptials – which were captured on camera for TLC's Mario and Courtney's Wedding Fiesta, airing on Saturday – being together was the best present they could have received.

"To be honest, we didn't have a wedding registry and didn't ask for any gifts," Mario recently said. "We asked for people to donate to a charity. That was important to us."

Adds the X Factor host, "We had so many people say that was the best wedding ever. Oh my god, it was so much fun."

With their wedding day under their belt, the pair has another celebration nearing.

The couple teamed up with Nivea this year to help kick off the "Kiss of the Year" contest on Facebook, and they will head to Times Square in New York City for New Year's Eve to be with the winning pair, who can be voted on through Dec. 14.

"There were over 1,400 entries," Courtney says. "All of the stories were amazing. It was so hard to narrow it down to just three couples."

Their holiday destination has a special significance.

"We love New York," Mario says. "It's where we met and fell in love."

As for their first kiss, Courtney says with a laugh, "Oh, yeah, I remember it. He pounced me!"

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Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


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Wall Street Week Ahead: "Cliff" worries may drive tax selling


NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.


The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.


Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.


Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.


"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."


Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.


The rush to avoid higher taxes on portfolio gains could cause additional weakness.


The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.


A PAIN PILL FROM THE FED?


Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.


Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.


"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.


"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.


MORE VOLUME AND VOLATILITY


Volume could increase as investors try to shift positions before year end, some analysts said.


While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.


Volatility could pick up as well, and some of that is already being seen in Apple's stock.


"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.


Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.


"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.


While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.


To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.


Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.


"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)



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The Lede Blog: Hospital Nurse in Radio Hoax With Kate Middleton Is Found Dead

Video of a statement on Friday from the London hospital where Kate Middleton was treated this week.

A nurse at a London hospital, who took a prank call from two Australian radio disc jockeys pretending to be Queen Elizabeth II and Prince Charles to get details on Kate Middleton’s medical condition, was found dead on Friday, the hospital said.

John Lofthouse, the chief executive of the King Edward VII hospital — where Ms. Middleton, the Duchess of Cambridge, was treated this week for hyperemesis gravidarum, acute morning sickness related to her pregnancy — told reporters:

It is with very deep sadness that we confirm the tragic death of a member of our nursing staff, Jacintha Saldanha. Jacintha has worked at the King Edward VII’s Hospital for more than four years. She was an excellent nurse and well-respected and popular with all of her colleagues.

We can confirm that Jacintha was recently the victim of a hoax call to the hospital. The hospital had been supporting her throughout this difficult time.

London’s Metropolitan Police Service, said in a statement that Ms. Saldanha, 46, was found unconscious on Friday morning “at work-provided accommodation” near the hospital and pronounced dead at the scene by the London Ambulance Service.

Although the police said the nurse’s death “is being treated as unexplained,” the D.J.’s were widely held responsible on social networks.

Lord Glenarthur, the hospital’s chairman, added: “This is a tragic event. Jacintha was a first class nurse who cared diligently for hundreds of patients during her time with us. She will be greatly missed.”

Ms. Middleton was released from the hospital on Thursday and went home with her husband, Prince William, for further rest. A statement from St. James’s Palace on behalf of the royal family said:

The Duke and Duchess of Cambridge are deeply saddened to learn of the death of Jacintha Saldanha. Their Royal Highnesses were looked after so wonderfully well at all times by everybody at King Edward VII hospital, and their thoughts and prayers are with Jacintha Saldanha’s family, friends and colleagues at this very sad time.

Audio of the prank phone call to the hospital, in which the D.J.’s Mel Greig and Michael Christian were provided with information on Ms. Middleton’s condition, was removed from the Web site of their radio station, 2DayFM, and the broadcaster’s YouTube channel after the nurse’s death. Excerpts from the phone conversation between the pranksters and hospital staff members were included in a news report from Britain’s ITN.

Before the call to the nursing staff was put through, the D.J.’s laughed on the air about Ms. Greig’s poor impersonation of the queen and expressed surprise about how easy it had been for them to be taken seriously. During the call, Ms. Greig, in the role of the queen, asked when a good time might be to visit, and made comedic references to her pet corgis.

“She’s sleeping at the moment and she has had an uneventful night, she’s been given some fluids … she’s stable at the moment,” the nurse on the call told the pranksters. “I would suggest that any time after 9 o’clock will be suitable.” She added: “We’ll be getting her freshened up.”

The two D.J.’s were reported to have later apologized, but seemed to welcome the international attention at first. Mr. Christian, whose @MContheradio Twitter account was later disabled, initially boasted that Conan O’Brien had noticed the prank.

In a statement, Southern Cross Austereo, the Australian media company, and 2Day FM, its radio station, said they were “deeply saddened” by news of Ms. Saldanha’s death and extended sympathies to the family and others affected. It said the company and the “deeply shocked” hosts have decided that the D.J.’s would not return to their radio show until further notice.


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The X Factor: Will Demi Lovato Be Back Next Season?






The X Factor










12/07/2012 at 03:55 PM EST







Demi Lovato and Simon Cowell



She's sassy with Simon Cowell and, after Thursday's elimination of CeCe Frey, she became the first judge this season to lose all her contestants on The X Factor.

So, should freshman judge Demi Lovato be worried about going the way of season 1's female judges, Paula Abdul and Nicole Scherzinger?

"It's that time of year [when] you're always going to get asked that question," Cowell told PEOPLE after Thursday's show, "and I'm not going to answer it."

If Demi does leave the show it won't be due to any personal issues Simon may have with the "Give Your Heart a Break" singer. Despite their near-constant bickering on the panel, Simon admits he has a soft spot for her spitfire nature.

"She's fun," Simon, who still has two acts in the competition, said. "She really, really is a tough little thing. I know she plays the 'I've been bullied' [card] – trust me, this one gives as good as she gets."

Still, that doesn't mean Simon agrees with the harsh criticisms Demi has been dishing out to his groups, boy banders Emblem3 and girl group Fifth Harmony.

"It did get a bit bitchy and unpleasant," he said of their recent spats. "I've got to look after my artists. Luckily, they didn't listen to her."

Reporting by PATRICK GOMEZ

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Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


Read More..

Solid jobs data spurs little buying, Apple falls again

NEW YORK (Reuters) - The S&P 500 eked out only a slight gain on Friday as weak consumer sentiment data offset enthusiasm from a better-than-expected jobs report, while the Nasdaq slipped after some investors resumed a sell-off of Apple shares.


Wall Street opened higher after the U.S. Labor Department said non-farm payrolls added 146,000 jobs in November. However, the gains faded, and selling increased after the Thomson Reuters/University of Michigan's consumer sentiment index for early December fell to its lowest level since August.


Apple shares resumed a recent slide, falling 2.9 percent to $531.27. The stock of Apple, the largest U.S. company by market value, is down 10 percent this week. It has dropped 24 percent from its all-time intraday high of $705.07 reached in late September.


In Friday's session, Apple's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38 - and putting the stock on track for its worst week since May 2010.


"There are a number of contributing factors to the weakness today. One is the return to the negative slide in Apple. It's a pretty big proxy for tech in general, and the market overall," said Michael James, senior trader at Wedbush Morgan in Los Angeles.


In Friday's session, Apple's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38 - and putting the stock on track for its worst week since May 2010.


Apple's weakness drove the S&P information technology sector <.gspt> lower. The index fell 0.7 percent and was the weakest of the S&P 500's 10 major industry sectors on Friday.


The equity market has regained most of the ground it lost following President Barack Obama's re-election as markets turned their focus to the coming "fiscal cliff." Market response to the macroeconomic data remained muted as negotiations continued to command investor attention.


The conflicting reports "would have had more of a lasting effect in a normal environment, but in the current environment? No. There's total uncertainty with what's going to transpire here and abroad. Too many questions," said Warren West, principal at Greentree Brokerage Services in Philadelphia.


U.S. House Speaker John Boehner said that talks this week with President Barack Obama produced no progress, and he renewed his demand that the president provide a new offer to avert the series of tax increases and spending cuts that are likely to hurt economic demand in 2013.


Still, the S&P 500 is just 4.1 percent below the 2012 intraday high of 1,474.51 reached in mid-September.


The Dow Jones industrial average <.dji> rose 53.67 points, or 0.41 percent, to 13,127.71. The Standard & Poor's 500 Index <.spx> gained 1.80 points, or 0.13 percent, to 1,415.74. The Nasdaq Composite Index <.ixic> fell 15.55 points, or 0.52 percent, at 2,973.72.


Amarin Corp shares lost 18.5 percent to $9.74 after the biopharmaceutical company raised $100 million in financing to help it launch its heart drug, Vascepa, but disappointed investors, who had hoped for a sale or partnership.


CombiMatrix Corp shares soared 250.3 percent to $6.90 after the company said two studies published in a medical journal favored technology it uses for prenatal diagnosis of genetic abnormalities over traditional technologies.


Shares of Netflix Inc , which had fluctuated between positive and negative territory earlier in the session, turned higher once more by early afternoon. Netflix was up 0.6 percent at $86.66 following news that the Securities and Exchange Commission was considering taking action against the company and its Chief Executive Reed Hastings for violating public disclosure rules with a Facebook post.


(Additional reporting by Chuck Mikolajczak; Editing by Bernadette Baum and Jan Paschal)



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U. S. and Russia to Meet on Syrian Conflict





DUBLIN — A new round of diplomacy on the conflict in Syria will begin on Thursday afternoon when Lakhdar Brahimi, the United Nations special envoy, hosts an unusual three-way meeting with Secretary of State Hillary Rodham Clinton and the Russian foreign minister, Sergey V. Lavrov.




The session, which is being held on the margins of a meeting on European security, comes amid reports of heightened activity at Syria’s chemical weapons sites and signs that Russia may be shifting its position on a political transition in Syria.


“Secretary Clinton has accepted an invitation by U.N. Special Envoy Brahimi for a trilateral meeting on Syria this afternoon with Mr. Brahimi and Russian Foreign Minister Lavrov,” a senior State Department official said Thursday morning.


This is not the first time that American and Russian consultations have spurred hopes of a possible breakthrough. In June, Mrs. Clinton, Mr. Lavrov and the United Nations’s envoy on the Syrian crisis at the time, former United Nations Secretary General Kofi Annan, appeared to be close to an agreement that a transitional government should be established and that President Bashar al-Assad give up power.


But that seeming understanding quickly broke down, with American officials complaining privately that the Russian side had pulled back from the deal. A major sticking point, it later emerged, was the American insistence that the United Nations Security Council authorize steps to pressure Mr. Assad if he refused to go along under Chapter 7 of the United Nations Charter, which could be used to authorize tougher economic sanctions and, in theory, the use of force.


It remained to be seen if the new round of negotiations would be more successful.


On the one hand, the military situation on the ground appears to be shifting in the rebels’ favor. Some Russian officials reportedly no longer believe that Mr. Assad will succeed in holding on to power and may have a new interest in working out arrangements for a transition. The changing battlefield, some experts say, may have led to a softening of the Russian position.


A senior Turkish official said that after President Vladimir V. Putin of Russia and Prime Minister Recep Tayyip Erdogan of Turkey recently met in Istanbul that Moscow was “softening” its “political tone” and would look for ways of getting Mr. Assad to relinquish power.


On the other hand, it was possible that Mr. Lavrov had, in effect, merely agreed to meet so that Russia could maintain influence over the discussions on Syria and find out what exactly Mr. Brahimi was prepared to propose.


There were indications on Thursday that Russian officials see the positions of Washington and Moscow on Syria moving slightly closer.


Deputy Foreign Minister Gennady Gatilov of Russia expressed satisfaction in a Twitter message that the United States was moving to designate Al Nusra Front, a Syrian opposition group seen by American experts as linked to Al Qaeda, as an international terrorist organization.


The aim of the American move, which is expected soon, would be to isolate radical foes of the Assad government.


With the rebels making gains on the ground, American officials have been trying to ensure that military developments do not outpace political arrangements for a possible transition. American officials have hinted that the United States would upgrade relations with the Syria opposition, possibly to formal recognition, if the coalition made progress on a political structure by the time of a meeting of the so-called Friends of Syria in Morocco.


But emerging policy on the Al Nusra Front also acknowledges Russia’s longstanding argument that the Syrian opposition includes radical jihadists. Mr. Gatilov said that the American step “reflects understanding of the danger of escalating terrorist activity in Syria.”


A lawmaker with the dominant party, United Russia, told British legislators visiting Moscow that Russia saw Mr. Assad’s government struggling. “We think that the Syrian government should execute its functions,” he said, according to the Interfax news service. “But time shows that this task is beyond its strength.”


Dimitri K. Simes, a Russia expert the Center for the National Interest in Washington, said, based on conversations with top officials, that Russia has indeed softened its position in light of military setbacks for the Assad government, and it is now understood that neither Mr. Assad nor his close associates would take a central role in a new government.


However, he said Russia still wanted Iran to take part in negotiations about the transition. Iran’s presence, he said, would reassure Alawites, the Shiite Muslim minority of Mr. Assad and the core of the military, that they would be protected in the change of government.


Michael R. Gordon reported from Dublin, and Ellen Barry from Moscow. Anne Barnard contributed reporting from Beirut, Lebanon.



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Apple and Samsung return to court to battle over $1 billion verdict












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Bo Obama Adorns White House Christmas Card















12/06/2012 at 03:55 PM EST







White House Christmas card


MAI / Splash News Online


It wouldn't be Christmas at the White House without Bo Obama.

After inspecting this season's holiday decorations – in which he is prominently featured through a life-size replica and Bo-flake ornaments – the first dog also graces the Obama family's Christmas card.

Iowa artist Larassa Kabel's painting depicts a snow-covered Bo running across the White House's North Lawn, an homage to this 2010 snapshot, which caught the 4-year-old playing in the snow during a February blizzard.

"He is my son," Michelle Obama said in March of the Portuguese Water Dog, whose paw print also appears in the interior of the card alongside the First Family's signatures. "He's a very sweet dog."

Bo Obama Adorns White House Christmas Card| Bo Obama, Stars and Pets, Dogs

White House Christmas card

MAI / Splash News Online

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Celebrations planned as Wash. legalizes marijuana


SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.


Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.


Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."


Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.


Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.


___(equals)


Johnson can be reached at https://twitter.com/GeneAPseattle


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Wall Street flat, Apple helps techs to rise

NEW YORK (Reuters) - Stocks drifted near the unchanged mark on Thursday as investors postponed big bets before the November employment report on Friday, but technology stocks rose on gains in Apple and Broadcom.


Monthly payroll numbers, to be released by the Labor Department, are expected to show a sharp slowdown in jobs growth because of superstorm Sandy.


Broadcom boosted other semiconductor companies a day after it forecast fourth-quarter revenue at the high end of its target range due to slightly better-than-expected sales in its mobile business. Shares rose 1.9 percent to $32.97.


The S&P technology index <.gspt> was the best performing of the 10 major S&P sectors, gaining 0.36 percent. The PHLX semiconductor index <.sox> rose 0.5 percent.


Apple was up 1.4 percent after losing as much as 3.7 percent at the open. The stock suffered its biggest one-day drop in four years on Wednesday due to concerns about higher capital gains taxes in 2013 and the company's market share in the tablet market.


Apple Inc's rank in China's smartphone market fell to No. 6 in the third quarter as it faces tougher competition from Chinese brands, research firm IDC said.


Broader moves were limited, however, as traders focused on the "fiscal cliff" debate. About three weeks remain before a series of tax increases and spending cuts would begin that could slow growth. Legislators are trying to come up with a deal to avoid some of the negative effects on the economy while still reducing the U.S. budget deficit.


While Republican leaders in the U.S. House of Representatives insist that raising tax rates on the rich is not negotiable, some GOP lawmakers now see it as inevitable to avoid the fiscal cliff.


"As we get close to the last two weeks, things will pick up," said Gordon Charlop, managing director at Rosenblatt Securities in New York. Congress and the White House will have final discussions near the end of the year about how to handle the "fiscal cliff," he said.


Without action from Congress, tax cuts on capital gains and dividends will expire at the end of 2012, which has contributed to selling certain stocks that have done extremely well in recent years, such as Apple.


The Dow Jones industrial average <.dji> slipped 7.93 points, or 0.06 percent, at 13,026.56. The Standard & Poor's 500 Index <.spx> fell 0.14 point, or 0.01 percent, at 1,409.14. The Nasdaq Composite Index <.ixic> gained 8.31 points, or 0.28 percent, at 2,982.00.


Sirius XM Radio shares rose 1.4 percent to $2.81 after its board approved a $2 billion stock repurchase and declared a special dividend, giving a big payout to its largest shareholder, Liberty Media , which rose 2.3 percent to $108.87.


Garmin shares rose 4.5 percent to $41.49 after Standard & Poor's said it would add the navigation device maker to the S&P 500 index. Garmin will replace R.R. Donnelley & Sons after the close of trading on December 11.


(Editing by Kenneth Barry)



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Serbian Ambassador to NATO Is Said to Commit Suicide





PARIS — The Serbian ambassador to NATO, Branislav Milinkovic, jumped to his death from a multistory parking garage on Tuesday afternoon at the Brussels airport, diplomats said Wednesday.







Reuters

Branislav Milinkovic, Serbia's ambassador to NATO, sits at the alliance headquarters in Brussels Dec. 14, 2006.







Mr. Milinkovic, 52, a respected diplomat, lawyer and intellectual appointed to the ambassadorship in 2009, was at the airport to meet a visiting Serbian delegation, officials said. B92, an independent broadcaster in Belgrade, Serbia, reported that the country’s assistant foreign minister, Zoran Vujic, was with Mr. Milinkovic at the time and witnessed his death.


Serbian officials said that the motive was not known, and that Mr. Milinkovic gave no sign of what he intended in the moments before he leapt to his death.


Diplomats attending a two-day meeting of NATO foreign ministers in Brussels said they were shocked by the news. Serbia is not a member of the military alliance, but it belongs to a group of countries that cooperates with NATO on military and security issues.


Oana Lungescu, a spokeswoman for the alliance, said by telephone from Brussels that Mr. Milinkovic was a jovial and engaging man known for his gentle manner, and that he was widely liked and admired at NATO headquarters, where he had been recently seen playing tennis. He had a wife, who was in Dublin at the time of his death, and a son, B92 said.


When Serbia, the largest state to emerge from the disintegration of Yugoslavia, was ruled by the strongman Slobodan Milosevic in the 1990s, NATO conducted a bombing campaign to force Mr. Milosevic to withdraw Serbian forces from the breakaway region of Kosovo. Mr. Milinkovic was an opposition activist during Mr. Milosevic’s rule, and he became a diplomat after his overthrow in 2000, helping to rebuild friendly ties with Western Europe.


“Everyone is totally shocked to hear what happened,” Ms. Lungescu said. “He was a totally open and lovely man and made an important contribution toward rapprochement between Serbia and NATO, making great efforts to bridge over a difficult history and to move forward rather than backward.”


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Teen Arrested in Bank Robbery Had Bragged of Heist on YouTube















12/05/2012 at 03:35 PM EST



There are criminal masterminds, and then there's Hannah Sabata.

The 19-year-old high school dropout allegedly knocked off a bank in Nebraska, then posted a YouTube video bragging about it.

"Kind of a strange deal isn't it?" York County Sherriff Dale Radcliff tells PEOPLE.

In her eight-minute video, Sabata doesn't utter a word. Instead, she scribbles handwritten signs detailing her alleged armed robbery of the Cornerstone Bank in Waco, Neb., on Nov. 28, using "a gun, a pillow case, and a note."

During the course of her video, she also describes how she stole a "shiny new" Pontiac Grand Am, which she used as a getaway car after making off with $6,256 in cash.

"I told my mom today was the best day of my life," she writes in the video, while waving hundred-dollar bills in front of the camera. "She just thinks I met a new boy . . . I'm going for a shopping spree. Bite me."

According to police, Sabata is wearing the same clothes she wore when she allegedly handed bank tellers a slip of paper that read: "You are being robbed! NO ALARMS OR LOCKS OR PHONES or INK BAGS! I have a loaded gun. You have 2 minutes."

Sherriff Radcliff notes that law enforcement officials didn't even know about Sabata's video until after her arrest on Nov. 29.

Photographs of the robber, captured by the bank's security cameras, were quickly distributed throughout the community.

"We had lots of leads, but when her ex-husband notified us and said 'That's my ex-wife,' we got an arrest warrant for her," he said.

Sabata is currently being held in a York County jail on $300,000 bond. According to Radcliff, she faces up to 70 years in prison if convicted of armed robbery and auto theft.

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Longer tamoxifen use cuts breast cancer deaths


Breast cancer patients taking the drug tamoxifen can cut their chances of having the disease come back or kill them if they stay on the pills for 10 years instead of five years as doctors recommend now, a major study finds.


The results could change treatment, especially for younger women. The findings are a surprise because earlier research suggested that taking the hormone-blocking drug for longer than five years didn't help and might even be harmful.


In the new study, researchers found that women who took tamoxifen for 10 years lowered their risk of a recurrence by 25 percent and of dying of breast cancer by 29 percent compared to those who took the pills for just five years.


In absolute terms, continuing on tamoxifen kept three additional women out of every 100 from dying of breast cancer within five to 14 years from when their disease was diagnosed. When added to the benefit from the first five years of use, a decade of tamoxifen can cut breast cancer mortality in half during the second decade after diagnosis, researchers estimate.


Some women balk at taking a preventive drug for so long, but for those at high risk of a recurrence, "this will be a convincer that they should continue," said Dr. Peter Ravdin, director of the breast cancer program at the UT Health Science Center in San Antonio.


He reviewed results of the study, which was being presented Wednesday at a breast cancer conference in San Antonio and published by the British medical journal Lancet.


"The result of this trial will have a major, immediate impact on premenopausal women," Ravdin said.


About 50,000 of the roughly 230,000 new cases of breast cancer in the United States each year occur in women before menopause. Most breast cancers are fueled by estrogen, and hormone blockers are known to cut the risk of recurrence in such cases.


Tamoxifen long was the top choice, but newer drugs called aromatase inhibitors — sold as Arimidex, Femara, Aromasin and in generic form — do the job with less risk of causing uterine cancer and other problems.


But the newer drugs don't work well before menopause. Even some women past menopause choose tamoxifen over the newer drugs, which cost more and have different side effects such as joint pain, bone loss and sexual problems.


The new study aimed to see whether over a very long time, longer treatment with tamoxifen could help.


Dr. Christina Davies of the University of Oxford in England and other researchers assigned 6,846 women who already had taken tamoxifen for five years to either stay on it or take dummy pills for another five years.


Researchers saw little difference in the groups five to nine years after diagnosis. But beyond that time, 15 percent of women who had stopped taking tamoxifen after five years had died of breast cancer versus 12 percent of those who took it for 10 years. Cancer had returned in 25 percent of women on the shorter treatment versus 21 percent of those treated longer.


Tamoxifen had some troubling side effects: Longer use nearly doubled the risk of endometrial cancer. But it rarely proved fatal, and there was no increased risk among premenopausal women in the study — the very group tamoxifen helps most.


"Overall the benefits of extended tamoxifen seemed to outweigh the risks substantially," Dr. Trevor Powles of the Cancer Centre London wrote in an editorial published with the study.


The study was sponsored by cancer research organizations in Britain and Europe, the United States Army, and AstraZeneca PLC, which makes Nolvadex, a brand of tamoxifen, which also is sold as a generic for 10 to 50 cents a day. Brand-name versions of the newer hormone blockers, aromatase inhibitors, are $300 or more per month, but generics are available for much less.


The results pose a quandary for breast cancer patients past menopause and those who become menopausal because of their treatment — the vast majority of cases. Previous studies found that starting on one of the newer hormone blockers led to fewer relapses than initial treatment with tamoxifen did.


Another study found that switching to one of the new drugs after five years of tamoxifen cut the risk of breast cancer recurrence nearly in half — more than what was seen in the new study of 10 years of tamoxifen.


"For postmenopausal women, the data still remain much stronger at this point for a switch to an aromatase inhibitor," said that study's leader, Dr. Paul Goss of Massachusetts General Hospital. He has been a paid speaker for a company that makes one of those drugs.


Women in his study have not been followed long enough to see whether switching cuts deaths from breast cancer, as 10 years of tamoxifen did. Results are expected in about a year.


The cancer conference is sponsored by the American Association for Cancer Research, Baylor College of Medicine and the UT Health Science Center.


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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Dow, S&P rebound on banks, but Nasdaq sours with Apple

NEW YORK (Reuters) - Stocks mostly rose on Wednesday, boosted by a rally in bank shares, though a steep drop in Apple limited the advance and kept the Nasdaq in negative territory.


Trading was volatile, with the S&P 500 dropping into negative territory at one point and the Nasdaq falling more than 1 percent before rebounding. The Dow, which doesn't contain Apple Inc as a component, climbed 1 percent by midday.


Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 4.7 percent to $548.88. Apple is down more than 22 percent from an all-time high reached in late September.


The S&P 500 reversed course after briefly falling below the 1,400 level, seen as a key support point over the past two weeks.


"There's still psychological interest in buying the market," said John Brady, managing director at R.J. O'Brien & Associates in Chicago. At the 1,400 level, "we find again ‘dip buyers' there. They strongly believe a deal (on the fiscal cliff) is going to get done."


For several weeks, investors have reacted quickly to whiffs of sentiment from Washington in headlines about negotiations between the White House and congressional leaders over a deal on how to avoid the "fiscal cliff" - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year.


President Barack Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.


The Dow Jones industrial average <.dji> was up 115.44 points, or 0.89 percent, at 13,067.22. The Standard & Poor's 500 Index <.spx> was up 5.71 points, or 0.41 percent, at 1,412.76. But the Nasdaq Composite Index <.ixic> was down 13.75 points, or 0.46 percent, at 2,982.94.


Apple's slide weighed heavily on the Nasdaq. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm.


Apple has "to hit another home run to get $700 again," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. "They need another new product that hits it out of the park. Without that, they could get a gradual grind-down in confidence ... this is not going to be a short-term trend."


On the upside, The Travelers Cos Inc rose 5.1 percent to $74.111 and ranked as the Dow's top gainer after the property and casualty insurance company said its preliminary estimate of net losses from Superstorm Sandy was about $650 million after tax.


Banks were also strong, with the S&P financial sector index <.gspf> climbing 1.5 percent. The rally was led by a 7.3 percent climb in Citigroup to $36.79 after the company said it would cut 4 percent of its workforce in a cost-cutting move. The KBW Bank Index <.bkx> rose 2 percent.


Bank of America shares shot up 6.1 percent to $10.51, just a touch off a new 52-week high at $10.52.


Freeport-McMoRan Copper & Gold Inc fell 15.2 percent to $32.47 as the S&P 500's biggest percentage decliner. The company said it was acquiring Plains Exploration & Production Co and McMoRan Exploration Co in two separate deals for $9 billion in cash and stock in a major expansion into energy.


McMoRan Exploration soared 83.6 percent to $15.53 and Plains Exploration & Production surged 24.4 percent to $44.83.


Economic data from payrolls processor ADP showed U.S. private-sector hiring took a hit in November due to the impact of Superstorm Sandy, which ravaged consumers and businesses in the Northeastern United States, but the huge services sector kept expanding albeit at a modest pace, according to the Institute for Supply Management.


(Additional reporting by Rodrigo Campos; Editing by Jan Paschal)



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Chancellor Angela Merkel of Germany Opens Campaign for a Third Term







BERLIN — Angela Merkel began her campaign for re-election on Tuesday with a display of the down-to-earth pragmatism that has helped make her immensely popular among Germans and well positioned to win a third term as chancellor next year.




Wielding two bouquets of bright orange flowers after delegates in her center-right Christian Democratic Union elected her to a seventh term as their party leader with a record 97.9 percent of the votes, Ms. Merkel took the podium and thanked the cheering crowd.


“Those who know me know that I’m overwhelmed and touched,” she said. “And now, let’s get to work. We have a lot to do.”


With overall approval ratings close to 70 percent, Ms. Merkel, a 58-year-old daughter of a Lutheran pastor who grew up in East Germany, is viewed as being at the height of her powers. Surveys show her comfortably ahead of her closest rival, Peer Steinbrück of the center-left Social Democrats, before parliamentary elections next September.


Analysts point to her combination of pragmatism and readiness to compromise the driving force behind her popularity. Nils Diederich, a professor of political science at the Free University of Berlin, said Ms. Merkel had succeeded in shifting her party away from its traditionalist ideology, making it more attractive to mainstream Germans. In addition, she has shepherded her country through Europe’s worst economic crisis in recent history and into a leadership role.


“During Ms. Merkel’s tenure, she has led Germany into a position of greater strength than it has ever known,” Mr. Diederich said. “Ms. Merkel has shown people that we have nothing to hide.”


That confidence was on display in the chancellor’s speech to delegates, who gathered on Tuesday for a two-day congress in the central city of Hanover. She praised her government as the country’s most successful since its postwar reunification in 1990, despite the challenges it faces.


“These are turbulent times, and sometimes we find ourselves in stormy waters,” Ms. Merkel said. She went on to highlight her government’s successes, including low unemployment and economic stability in the face of the economic crisis crippling much of the rest of Europe.


“In such times, no other government could lead the country as successfully as our conservative-liberal coalition,” Ms. Merkel told members.


In spite of the fact that the chancellor is personally popular, her government — an alliance of her own conservative Christian Democratic Union with the sister party for the state of Bavaria, the Christian Social Union, and the pro-business Free Democrats — is not.


Recent months have seen the Free Democrats bleeding support, opening the discussion for other possible alliances, with a so-called grand coalition of Ms. Merkel’s conservatives and the Social Democrats — a combination that Ms. Merkel governed during her first term as chancellor, from 2005 to 2009.


Increasingly the talk has been about whether the country’s traditional conservative party would form an alliance with the more left-leaning and environmentalist Green party, which earned about 15 percent support in a survey released Tuesday by the polling group Insa.


Ms. Merkel’s conservatives earned 35 percent, placing them in the strongest position, but requiring they find a coalition partner, according to the poll published in the Bild newspaper.


For the first time in weeks, the poll showed the Free Democrats earning 5 percent support, enough to secure representation in Parliament, making them available to form a coalition.


Nevertheless, the chancellor is keeping her options open. In a playful dig at her coalition partner, Ms. Merkel drew laughs from the crowd by citing a recent satire as saying, “Perhaps God created the F.D.P. only to test us.”


Compared with all other possible constellations from Germany’s political scene, Ms. Merkel said nevertheless that the current government of conservatives and economic liberals had the most in common.


“We share common values and principles,” she said. “And these are the values and principles that we need to successfully overcome today’s challenges.”


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China goes crazy for iPhone 5: Preorders hit 100,000 units in under 24 hours












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Frankie Muniz Recovering from a 'Mini-Stroke'















12/04/2012 at 03:50 PM EST



Malcolm's in the middle of a health scare.

Former child star Frankie Muniz is recovering from "mini-stroke" that sent him to the hospital last Friday.

Muniz, who turns 27 on Wednesday, tells his Twitter followers that the experience was "not fun at all."

"Have to start taking care of my body!" he writes. "Getting old!"

Muniz provided no more details. But a "mini-stroke" is commonly used to describe a transient ischemic attack, or TIA, when blood temporarily stops reaching the brain, causing stroke-like symptoms for one to 24 hours.

Doctors believe a TIA can be a warning sign for a possible full stroke in the future without preventative measures.

Muniz grew up in front of TV audiences on Malcolm in the Middle from 2000 to 2006. He's moved on to racecar driving and music – he drums for the band Kingsfoil – though recently made a cameo on Don't Trust the B---- in Apartment 23.

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CDC says US flu season starts early, could be bad


NEW YORK (AP) — Flu season in the U.S. is off to its earliest start in nearly a decade — and it could be a bad one.


Health officials on Monday said suspected flu cases have jumped in five Southern states, and the primary strain circulating tends to make people sicker than other types. It is particularly hard on the elderly.


"It looks like it's shaping up to be a bad flu season, but only time will tell," said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.


The good news is that the nation seems fairly well prepared, Frieden said. More than a third of Americans have been vaccinated, and the vaccine formulated for this year is well-matched to the strains of the virus seen so far, CDC officials said.


Higher-than-normal reports of flu have come in from Alabama, Louisiana, Mississippi, Tennessee and Texas. An uptick like this usually doesn't happen until after Christmas. Flu-related hospitalizations are also rising earlier than usual, and there have already been two deaths in children.


Hospitals and urgent care centers in northern Alabama have been bustling. "Fortunately, the cases have been relatively mild," said Dr. Henry Wang, an emergency medicine physician at the University of Alabama at Birmingham.


Parts of Georgia have seen a boom in traffic, too. It's not clear why the flu is showing up so early, or how long it will stay.


"My advice is: Get the vaccine now," said Dr. James Steinberg, an Emory University infectious diseases specialist in Atlanta.


The last time a conventional flu season started this early was the winter of 2003-04, which proved to be one of the most lethal seasons in the past 35 years, with more than 48,000 deaths. The dominant type of flu back then was the same one seen this year.


One key difference between then and now: In 2003-04, the vaccine was poorly matched to the predominant flu strain. Also, there's more vaccine now, and vaccination rates have risen for the general public and for key groups such as pregnant women and health care workers.


An estimated 112 million Americans have been vaccinated so far, the CDC said. Flu vaccinations are recommended for everyone 6 months or older.


On average, about 24,000 Americans die each flu season, according to the CDC.


Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.


A strain of swine flu that hit in 2009 caused a wave of cases in the spring and then again in the early fall. But that was considered a unique type of flu, distinct from the conventional strains that circulate every year.


__


Online:


CDC: http://www.cdc.gov/flu/weekly


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Wall Street flat on lack of "fiscal cliff" progress

NEW YORK (Reuters) - Stocks fluctuated between small gains and losses on Tuesday after remarks by President Barack Obama on budget talks dented optimism a solution could be found to prevent the economy from falling into recession.


Obama rejected a Republican proposal to resolve a looming fiscal crisis as "still out of balance" and said any deal must include a rise in income tax rates on the wealthiest Americans.


Obama spoke in an interview with Bloomberg Television.


Republicans in Congress proposed steep spending cuts to bring down the budget deficit on Monday but gave no ground on Obama's call to raise tax rates on the rich. The proposal was quickly dismissed by the White House.


"We have more of the same and what that really means is that you see very public negotiations that seem to be going nowhere," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.


"If there was any conviction that this was going to be a done deal, that we are going to see some really positive resolution on this fiscal cliff, you would see some real activity in the market."


The market has been sensitive to rhetoric from Washington, and many investors still expect the two sides eventually will reach a deal before the year's end, which could trigger a rally in equities.


Obama meets with U.S. governors at the White House on Tuesday to talk about the fiscal cliff, a $600 billion package of tax hikes and federal spending cuts that would begin January 1.


Volume was light, with about 3.34 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq.


Differences within the Republican Party over how to engage with the Democrats came to the fore on Tuesday as one senator opposed to raising taxes lashed out at House Speaker and fellow Republican John Boehner for proposing to increase revenue by closing some tax loopholes.


Despite the sudden moves in the market, a measure of investor anxiety has held surprisingly flat.


The CBOE volatility index <.vix>, a gauge of market anxiety, was at 17.36 but has not traded above 20 since July following its 2012 high near 28 hit in June. The VIX's 10-day Average True Range, an internal volatility measure, is at its lowest since early 2007.


Coach became the latest company to advance the date of its next dividend payment. Expectations of higher taxes on dividends kicking in in 2013 have pushed many companies to pay special dividends this year or advance their next pay-back to investors. Shares of the upscale leather-goods maker declined 2 percent to $57.06.


The Dow Jones industrial average <.dji> added 16.60 points, or 0.13 percent, to 12,982.20. The Standard & Poor's 500 Index <.spx> dropped 0.27 point, or 0.02 percent, to 1,409.19. The Nasdaq Composite Index <.ixic> dipped 3.81 points, or 0.13 percent, to 2,998.39.


Darden Restaurants Inc plunged 10.3 percent to $47.04 as the worst performer on the S&P 500 after warning its latest quarter would miss expectations after unsuccessful promotions led to a decline in sales at its Olive Garden, Red Lobster and LongHorn Steakhouse chains.


In contrast, Big Lots Inc surged 13.8 percent to $31.95 after the close-out retailer posted a smaller-than-expected loss and boosted its full-year adjusted earnings forecast.


Toll Brothers shares gained 1.1 percent to $32.80 after the largest U.S. luxury homebuilder reported a higher quarterly profit and said new orders rose sharply.


MetroPCS Communications shares tumbled 7.2 percent to $10.00 after Sprint Nextel appeared unlikely to make a counter-offer for the wireless service provider.


Shares of Pep Boys-Manny Moe and Jack slid 13.5 percent at $9.24 a day after the release of the auto parts retailer's results.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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DealBook: UBS Described as Near Deal With U.S. and Britain on Rate Rigging

UBS, the Swiss banking giant, is close to reaching settlements with American and British authorities over the manipulation of interest rates, the latest case in a multiyear investigation that has rattled the financial industry and spurred a public outcry for broad reform.

UBS is expected to pay more than $450 million to settle claims that some employees reported false rates to increase the bank’s profit, according to officials briefed on the matter who spoke on the condition of anonymity because the talks were private.

If the bank agrees to the deals with various authorities, the collective penalties would yield the largest total fines to date related to the rate-rigging inquiry and would increase the likelihood that other financial institutions would face stiff penalties. Authorities dealt their first blow in the rate-rigging case in June when the British bank Barclays agreed to a $450 million settlement.

A spokeswoman for UBS declined to comment. The agencies leading the UBS investigation, the Commodity Futures Trading Commission, the Justice Department and Britain’s Financial Services Authority, also declined to comment.

The UBS case will provide a window into systemic problems in the rate-setting process, which affects how consumers and companies borrow money around the world. After reviewing thousands of internal bank e-mails and interviewing dozens of employees, the authorities have uncovered patterns of abuse at the major banks that help set benchmark interest rates.

Libor Explained

The sprawling investigation is focused on benchmarks like the London interbank offered rate, or Libor. The rate, a measure of how much banks charge each other for loans, is used to determine the costs of trillions of dollars of mortgages, credit card charges and student loans.

The authorities claim that UBS traders colluded with rival banks to influence rates in an effort to bolster their profits, according to officials briefed on the matter. Some traders at UBS were suspended this year over the matter.

Given the scope of the case, the UBS settlement is expected to heighten calls for a reform of the Libor system. Lawmakers are pushing to change the way banks report rates, providing more transparency to consumers, companies and investors that rely on the benchmark.

The reform movement gained momentum after global authorities secured the settlement with Barclays. Regulators had accused Barclays of reporting false rates, a scandal that prompted the resignation of the chief executive and other top officials at the bank.

Global authorities are now moving forward with civil and criminal cases, setting up the potential for major fines and regulatory sanctions. Some banks are in advanced settlement talks, including UBS and the Royal Bank of Scotland. The Royal Bank said it expected to disclose penalties before the firm’s next earnings release in February. Deutsche Bank said last month that it had set aside money to cover potential fines, although it was too early to predict the size.

American authorities are hoping to complete a deal with UBS by the middle of the month, according to officials briefed on the matter. The officials noted that the discussions could spill into next year. The talks could also break down, in which case the authorities would file a lawsuit against the bank.

It is unclear whether global authorities will act in tandem on the UBS case. The bank and the regulators would prefer to strike a deal together, but the agencies are proceeding at different speeds.

Investigators say the broader Libor case could go on for years.

Canadian, Swiss and Asian authorities as well as the Justice Department, the Commodity Futures Trading Commission and Britain’s Financial Services Authority are investigating the actions of more than a dozen banks. Along with UBS, the futures commission is focused on potential wrongdoing at two American banks, Citigroup and JPMorgan Chase, the officials said. HSBC is also under scrutiny.

In addition to the regulatory cases, the Justice Department has identified potential criminal wrongdoing by traders at Barclays and other banks. The banks also face private lawsuits from large investors like local governments, which claim to have suffered losses as a result of interest rate manipulation. The New York attorney general has subpoenaed 16 banks over their role in the scandal, an action that could foreshadow civil lawsuits. Analysts predict the financial industry could face penalties of up to $20 billion.

“The evidence that comes out of any future settlement is likely to be enormously helpful for our claims,” said David E. Kovel, a partner at the law firm Kirby McInerney who is representing clients in a potential class-action suit related to Libor.

For UBS, the Libor case comes at a difficult time.

It has faced a series of legal problems since the financial crisis. In 2009, the bank agreed to pay $780 million to settle accusations by American authorities that it helped wealthy clients avoid taxes.

In 2011, it announced a $2.3 billion loss prompted by a rogue trader, Kweku M. Adoboli, who received a seven-year jail sentence for fraud last month. The firm agreed to pay a $47.5 million penalty to the British authorities in connection with the trading loss.

In the Libor case, UBS has been eager to cooperate. It has already reached a conditional immunity deal with the antitrust arm of the Justice Department, which could protect the bank from criminal prosecution under certain conditions. It is also cooperating with Canadian antitrust authorities by handing over e-mails and other documents implicating other banks.

But it did acknowledge publicly that such deals would not shield the bank from potential penalties from other regulators. The Justice Department’s criminal unit, for instance, could still take action against the bank.

UBS disclosed last year that it was the subject of investigations related to Libor, saying it had received subpoenas from American and Japanese authorities. Swiss and British regulators have joined the UBS investigation, which involves a number of currencies in the Libor system.

The timing of the Libor cases against UBS depends in large part on cooperation among regulators.

The Financial Services Authority in Britain has worked closely with its American counterparts. In total, the British regulator has about 160 people working on its various cases against banks, which are at different stages of development.

As the top watchdog of London’s financial services industry, the British regulator has positioned itself as a conduit for document requests from international regulators regarding Libor, which is set daily by banks in London. The agency also organizes interviews for its American counterparts with London-based bankers involved in the inquiries, according to an official with direct knowledge of the matter.

British regulators had been ready to move against UBS a month after officials announced a settlement with Barclays, the person added. The settlement has been delayed, however, as global authorities have tried to pursue a joint agreement with the bank.

“We’ve been going at the pace of the slowest regulator,” the official said.

A version of this article appeared in print on 12/03/2012, on page A1 of the NewYork edition with the headline: Ubs Is Reported To Be Near Deal On Rate Rigging.
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Lindsay Lohan Is 'Out of Control,' Says a Source















12/03/2012 at 03:00 PM EST



Things are not looking good for Liz and Dick star Lindsay Lohan.

Less than 24 hours before the well-documented punching incident at an N.Y.C. nightclub that got her arrested, Lohan was "dancing like crazy" past 2 a.m. at The Darby, at one point "causing a scene" when she thought she lost her phone, says an onlooker. "She even demanded that a girl at a nearby table empty her pockets."

The following night, Lohan appeared drunk, according to reports, before she allegedly punched Tiffany Mitchell at a Manhattan nightclub. She is due in court for the altercation on Jan. 7.

Simply put, Lohan, 26, continues to struggle with alcohol, says a friend. "She will fool people into thinking she's changed, but at some point in the night, she always snaps and it's always the same story," says the pal.

After the nightclub incident, Lohan's assistant Gavin Doyle Tweeted to the actress: "@lindsaylohan after bailing you out last night I HOPE and PRAY you get the help you so desperately need. We are ALL rooting for you. xxx."

Lohan is "out of control," adds a second source. "Her friends don't know what to do. She won't ever change."

Meanwhile, another source close to the actress denies that she has a problem and says that it's the "near constant criticism" that's taking a toll on her. "If everything you did was criticized, you'd lash out too," says the pal. "But she'll be fine, she's tough. She'll probably outlive everyone."

For now, Lohan is due in a Los Angeles courtroom on Dec. 12 for a hearing relating to a June 8 car accident that resulted in three misdemeanor charges, including lying to a police officer. Those charges normally wouldn't threaten jail time for a first time offender, but because Lohan is still on informal probation, those charges, combined with a possible assault, could land her in jail.

The last time the starlet appeared before L.A. Superior Court Judge Stephanie Sautner, the judge warned Lohan that she could face 245 days in jail if she slipped up again.

Reporting by KEN LEE, HOWARD BREUER and EMILY STROHM

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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

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Karl Ritter can be reached at www.twitter.com/karl_ritter

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