Internet governance talks in jeopardy as Arab states, Russia ally

SAN FRANCISCO (Reuters) – A landmark attempt to set global rules for overseeing the Internet threatened to fall apart on Friday as a rift pitting the United States and some Western countries against the rest of the world widened, participants in the talks said.

A 12-day conference of the International Telecommunications Union, taking place in Dubai, is supposed to result in the adoption of a new international treaty governing trans-border communications.

But in a critical session at the midpoint of the conference on Friday, delegates refused to adopt a U.S.-Canadian proposal to limit the treaty’s scope to traditional communications carriers and exclude Internet companies such as Google, the ITU said on its website.

Further complicating the negotiations was what a U.S. official at the talks called the “surprise” announcement of an accord among some Arab states, Russia and other countries to pursue treaty amendments that are expected to include Internet provisions unacceptable to the United States

A still-secret draft of the coalition’s proposals is to be introduced soon by the United Arab Emirates, the official said.

“It doesn’t look good,” said a former U.S. intelligence official tracking the talks for private technology clients.

The emergence of the new coalition, whose members are generally seeking greater Internet censorship and surveillance, is likely to harden battle lines separating those countries from the United States and some allies in Western Europe.

The United States and others objected to the introduction of complex new material midway through the conference.

“All of the indicators we have so far is it’s something that could be a clear effort to extend the treaty to cover Net governance,” said policy counsel Emma Llanso of the nonprofit Center for Democracy & Technology, which draws funding from Google and other U.S. Internet companies.

“What we’re seeing is governments putting forward their visions of the future of the Internet, and if we see a large group of governments form that sees an Internet a lot more locked down and controlled, that’s a big concern.”

CONCERNS ABOUT GOVERNMENT CONTROLS

The U.S. ambassador to the conference said in an earlier interview that his country would not sign any agreement that dramatically increased government controls over the Internet.

That would potentially isolate America and its allies from much of the world, and technology leaders fear that the rest of the globe would agree on actions such as identifying political dissidents who use the Internet and perhaps trying to alter the Net’s architecture to permit more control.

The 147-year-old ITU, which is now under the auspices of the United Nations, historically has set technology standards and established payment customs for international phone calls. But under Secretary-General Hamadoun Touré, it has inched toward cyber-security and electronic content issues, arguing that Internet traffic goes over phone lines and is therefore within its purview.

The ITU is considering other issues in its most extensive rewrite of the treaty in 15 years, including proposals that content providers shoulder the costs of transmission. But none is as controversial as the projected Internet controls.

The Internet’s infrastructure, while initially funded in part by the U.S. government, is now largely in private hands. It has been subject to little government control, although many nations have attempted to regulate Internet communications in various ways.

ICANN, a self-governing nonprofit under contract to the U.S. Department of Commerce, is ultimately responsible for making sure that people trying to reach a given website actually get there, but most technology policies are developed by industry groups.

At the ITU meeting, the American delegation had counted on support from at least Japan, Australia and other affluent democracies.

But its effort to stave off wholesale changes has been hindered by complications in Western Europe, where some countries were supporting a change to the economic model that would have Google, Facebook and others pay for at least some of the costs of Internet transmission.

Smaller groups at the ITU conference will work through the weekend, with the full body meeting again on Monday.

(Editing by Jonathan Weber and Peter Cooney)

Tech News Headlines – Yahoo! News

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Susan Powell's Father-in-Law Secretly Took 4,500 Pictures of Her

12/07/2012 at 07:30 PM EST

Wrapping up a year that has brought unimaginable frustration and heartbreak, Susan Powell's family marked the three-year anniversary of her disappearance at a ceremony this week near where her two sons are buried.

"It's a hard time of year," Susan's father, Chuck Cox, tells PEOPLE. "Our daughter's still missing. Someday, we will find out what happened to her."

He added that he is not sure what to make of a West Valley City, Utah, police announcement Thursday that their investigation into Susan's Dec. 6, 2009 disappearance remains active but "has been scaled down," with a reduction in the number of full-time investigators working the case.

The announcement came at the same time that more evidence emerged of the alleged obsession Susan's father-in-law, Steven Powell, had toward her. Authorities released nearly 4,500 pictures that they say he secretly took of her at home and elsewhere.

Cox says he's hopeful that the police are still doing everything possible to solve Susan's case, but he hasn't ruled out suing the department for failing to arrest Susan's husband, Josh Powell, for her murder.

More than two years after Susan's disappearance, Josh on Feb. 5 murdered the couple's two sons and committed suicide by blowing up his house.

Cox's lawyer, Anne Bremner, says Cox "goes back and forth" over whether to sue West Valley City. "He wants them to find her. A lawsuit can have a chilling affect on things."

Cox and Bremner say they do plan to file a lawsuit against the state of Washington for continuing to give Josh visitation with his children despite what they claim were mounting concerns regarding his mental stability.

Although Cox and the police believe that Josh Powell knew more than anyone what happened to Susan, they also strongly suspect that his father, Steven Powell, should still be looked at more closely.

Steven Powell

Ted S. Warren / AP

The Coxes hoped Steve Powell's voyeurism trial in May would unearth some answers but it did not. Powell invoked his Fifth Amendment right against self-incrimination when asked in jail about Susan.

In numerous interviews with PEOPLE, Steve and Josh Powell denied any involvement in Susan's disappearance and have suggested that she ran off with another man.

Steve Powell was prosecuted for surreptitiously photographing his neighbor's young daughters (and is serving a 30-month sentence), but the investigation also unearthed journals in which Powell described his interest in his daughter-in-law, as well as the thousands of photos, which were released Thursday to the Associated Press.

In a journal entry, Steven Powell recalls a sexually charged dream in which Susan asks him, “Do you think I would make a good wife for you?” None of the pictures show Susan naked, although there are images of her crotch and backside.

"We think he knows exactly where our daughter is," Cox says.

Once Susan disappeared, Josh sold the family's home in Utah and moved with the boys into Steven Powell's house in Puyallup, Wash., only about two miles from the Cox family.

On Thursday, families streamed to Puyallup’s Woodbine Cemetery to remember the Powell boys and other children who died tragically and to dedicate a memorial: a bronze angel inspired by the novella The Christmas Box, in which strangers learn the value of love following a child’s death.

The novella's author, Richard Paul Evans, also attended the dedication. The memorial is on a hill overlooking the boys' gravesites 75 yards away.

"We get a lot of support from a lot of people and we're going to make it through," Cox says.

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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.

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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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Egypt military calls for dialogue to avoid "dark tunnel"

CAIRO (Reuters) - Egypt's military on Saturday urged rival political forces to solve their disputes via dialogue and said the opposite would drag the country into a "dark tunnel", which it would not allow.

A statement by the military spokesman read on state media made no mention of President Mohamed Mursi, but said a solution to the political crisis roiling the most populous Arab nation should not contradict "legitimacy and the rules of democracy".

Egypt has plunged ever deeper into crisis since Mursi, who was freely elected in June, decreed himself wide powers on November 22 and pushed ahead with plans for a referendum next Saturday on a constitution drafted by an Islamist-dominated assembly.

The army's duty was to protect national interests and secure vital state institutions, the military said. Egyptians could express their views "far from all displays of violence".

The statement, the army's most direct remarks so far on the political confrontation between the Islamist president and his liberal opponents, was issued while protesters were still camped out by the gates of the presidential palace.

But it did not appear to indicate that the army, which ran Egypt for months after Hosni Mubarak's overthrow last year, was planning to retake control of the country or its turbulent streets.

A military source said the statement did not signal any plan for a intervention in politics or a broad role on the streets.

A senior Muslim Brotherhood official welcomed the army's remarks as "balanced" and neutral. Former Foreign Minister Amr Moussa, now an opposition leader, said the army was simply responding to an "enormously dangerous situation".

The military was the power behind all previous presidents and an army council temporarily took over after Mubarak's fall. However, Mursi pushed the generals aside in August and they had shown little appetite to intervene in Egypt's latest crisis.

"DARK TUNNEL"

"The armed forces affirm that dialogue is the best and only way to reach consensus," the statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

The state-run daily al-Ahram earlier reported that Mursi would soon authorize the military to help police keep order and give it powers of arrest under a decree approved by the cabinet. It did not say when the decree would be issued.

The instability in Egypt worries the West, especially the United States, which has given Cairo billions of dollars in military and other aid since it made peace with Israel in 1979.

The tens of thousands of Mursi foes who surged past tanks and barbed wire to reach the palace gates on Friday night had dispersed, but a hard core stayed overnight in a score of tents.

Some had spray-painted "Down with Mursi" on tanks of the elite Republican Guard posted there after clashes between rival groups killed at least seven people and wounded 350 this week.

Others draped the tanks with posters of Mursi and the word "Leave" scored across his face in red letters.

"We are no longer calling for scrapping the decree and delaying the referendum," Samir Fayez, a Christian protester at the palace, said. "We have one demand in five letters: leave."

Nearby, a Mursi supporter named Mohamed Hassan was quietly observing the scene. He suggested that the Muslim Brotherhood and its ultra-orthodox Salafi Islamist allies could easily overwhelm their foes if they chose to do mobilize their base.

"The Brotherhood and Salafis by themselves are few but they have millions of supporters who are at home and haven't taken it to the streets yet," murmured the 40-year-old engineer.

"HATE US, BUT TALK"

The Muslim Brotherhood's supreme guide, Mohamed Badie, denounced opposition protests that have swirled around the walls of the Mursi's palace, saying they "ruin legitimacy".

Badie said eight people, all of them Brotherhood members, had been killed this week and urged the interior minister to explain why police had failed to prevent assailants from torching the organization's headquarters and 28 other offices.

"Get angry with the Brotherhood and hate us as much as you like, but be reasonable and preserve Egypt's unity," he told a news conference. "We hope everyone gets back to dialogue."

The turmoil has exposed deep divisions over the destiny of a country of 83 million where the removal of Mubarak 22 months ago led to a messy army-led transition, with the Brotherhood and its allies winning two elections.

The well-organized Brotherhood, which pushed Mursi from obscurity to power, remains his surest source of support, with over 80 years of religious and political struggle behind it.

Mursi was to host a "national dialogue" later on Saturday to chart a way forward, but opposition leaders have vowed to stay away unless he cancels his decree and defers the referendum.

Late on Friday, Prime Minister Hisham Kandil urged political forces to take "courageous and constructive steps" by calling off protests and joining the dialogue without preconditions.

Mursi's vice president has floated the possibility that the December 15 vote on a constitution opposed by liberals, leftists, Christians and others might be delayed. But the concession would fall far short of meeting all the opposition's demands.

While the main opposition coalition is boycotting, Mursi's dialogue might be joined by some senior judges or politicians such as Ayman Nour, who was trounced when he ran for president in 2005, the only multi-candidate race of the Mubarak era.

(Additional reporting by Edmund Blair, Omar Fahmy and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

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Netflix says CEO’s Facebook post triggered SEC notice

SAN FRANCISCO (Reuters) – Netflix Inc said on Thursday securities regulators warned they may bring civil action against the company and its chief executive for violating public disclosure rules with a Facebook post, in a case that raises questions about how public companies communicate on social media.

The high-profile Silicon Valley CEO, Reed Hastings, dismissed the contention and said he did not believe the Facebook post was “material” information.

Hastings wrote in the post on the company’s public Facebook page on July 3: “Netflix monthly viewing exceeded 1 billion hours for the first time ever in June.” The post was accessible to the more than 244,000 subscribers to the page.

Netflix received what is known as a Wells Notice from the U.S. Securities and Exchange Commission, which means the SEC staff will recommend the full commission pursue either a cease-and-desist action and/or a civil injunction against Netflix and Hastings over the alleged violation.

Netflix may have run afoul of the SEC’s Regulation FD, adopted in 2000, which requires public companies to make full and fair public disclosure of material non-public information.

“We think posting to over 200,000 people is very public, especially because many of my subscribers are reporters and bloggers,” Hastings said on Thursday in a letter. He also said that he did not believe the Facebook posting was “material” information.

The SEC believes that figure is material information that should have been disclosed in a press release or regulatory filing, according to Hastings’ letter.

“We remain optimistic this can be cleared up quickly through the SEC’s review process,” said Hastings in the public letter to shareholders that the online video streaming company submitted alongside a regulatory filing citing the receipt of the “Wells Notice” from the SEC.

Netflix’s stock jumped from $ 67.85 a share on July 2, the day before Hastings’ post, to $ 81.72 on July 5. On July 25 its stock fell 22 percent to $ 60.28 when the company reported second-quarter earnings fell from $ 68.2 million a year earlier to $ 6.2 million this year.

“It’s totally disingenuous to say that his statement wasn’t material when the stock went from under $ 70 a share to more than $ 80 and the only data point was that post,” said Wedbush Securities analyst Michael Pachter.

REGULATORY GREY AREAS?

But legal and securities experts say the fast-changing world of social media leaves room for regulatory grey areas.

“The evolution of social media presents the SEC with some very interesting regulatory challenges. But if they’re worried about social media, there are ways for them to address that without threatening to sue Reed Hastings. They should have a rulemaking where they can ventilate these issues,” said Joseph Grundfest, former SEC commissioner and Stanford Law School professor.

“This situation has nothing to do with the problems that Regulation FD was designed to address.”

Joseph Marrow, an attorney at the Waltham, Massachusetts law firm Morse Barnes-Brown Pendleton, said there are conflicting views on what constitutes disclosure in circumstances like this, also noting the rules are not settled in this area.

“I would not suggest companies publish material non-public information on Facebook and Twitter without discussing it before with in-house counsel. Companies are putting together social media policies,” he said.

“If Netflix doesn’t have a policy, I bet they will have one very soon,” he said, adding the issue was unlikely to be serious enough to threaten Hastings’ position as CEO of Netflix, but could result in some type of financial penalty for the company.

Netflix shares fell 1.4 percent to $ 85 in after-hours trading on Thursday.

(Reporting by Ronald Grover and Sue Zeidler in Los Angeles Additional reporting by Alexei Oreskovic and Alistair Barr in San Francisco; Editing by Dan Grebler, Phil Berlowitz and Muralikumar Anantharaman)

Social Media News Headlines – Yahoo! News

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It's a Girl for Gisele Bïndchen & Tom Brady

Mom & Babies
Celebrity Baby Blog

12/07/2012 at 07:45 AM ET

Matt Baron/BEImages

It’s a girl!

Supermodel Gisele Bündchen and New England Patriots quarterback Tom Brady welcomed their second child together on Dec. 5.

Daughter Vivian Lake was born at home and joins big brothers Benjamin Rein, who turns 4 Dec. 8, and John, 5, Brady’s son from a previous relationship.

“We feel so lucky to have been able to experience the miracle of birth once again and are forever grateful for the opp (sic) t. “o be the parents of another little angel,” Bündchen shared on her Facebook pageShe is healthy and full of life. Thank you all for your support and well wishes. We wish you and your families many blessings.”

Despite increasing speculation that she was expecting following an appearance in Rio de Janeiro, Bündchen, 32, never confirmed the pregnancy, but rather let her growing belly do all the talking before eventually baring her burgeoning bump for all to see in a leopard-print bikini in November.

But the couple’s decision to expand their family further came as no surprise; The Brazilian beauty has been very open about her wish to have a brood of babies. “I’d be lying if I said, ‘No,’ to wanting a lot of kids,” she told Vanity Fair in 2007.

– Anya Leon with reporting by Charlotte Triggs

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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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Stock futures dip ahead of jobs report

NEW YORK (Reuters) - The stock index futures dipped slightly on Friday as investors remained cautious ahead of a key monthly jobs report which was expected to have been impacted by Sandy, a massive storm that swept through the U.S. Northeast.

U.S. non-farm employment, due at 8:30 a.m. ET (1330 GMT), is forecast to have risen by 93,000 jobs in November after gaining 171,000 in October, according to a Reuters survey. The unemployment rate is seen holding steady at 7.9 percent.

Superstorm Sandy, which caused widespread damage and power outages, likely put a dent in U.S. jobs growth in November, temporarily interrupting a recently established trend of modestly rising payrolls.

Also to be released Friday is the Thomson Reuters/University of Michigan's consumer sentiment index, at 9:55 a.m. ET (1455 GMT). Economists surveyed by Reuters expect a preliminary December reading of 82.4 from 82.7 a month earlier.

S&P 500 futures fell 2.2 points and were below in terms of fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 10 points, and Nasdaq 100 futures dropped 2.50 points.

European shares fell Friday after Germany's central bank slashed its growth forecasts, and as investors booked profits on concerns U.S. jobs data may disappoint.

The Bundesbank cut its growth outlook for Germany, the euro zone's largest economy, on Friday, less than 24 hours after the European Central Bank slashed its own forecasts for the bloc, darkening the prospects for European corporate profits next year.

Amarin Corporation shares fell 18.5 percent to $9.74 in premarket trading after the bio-pharmaceutical 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.

Netflix Inc will be in focus. The company said Thursday securities regulators warned they may bring civil action against the firm and its chief executive for violating public disclosure rules with a Facebook post. The case raises questions about how public companies communicate on social media.

Gun marker Smith & Wesson posted revenue that beat Wall Street estimates on continued demand for its pistols and sporting rifles. The company also raised its full-year profit outlook.

U.S. stocks closed modestly higher in thin trading Thursday as a rebound in shares of Apple lifted technology shares.

(Reporting by Angela Moon; Editing by Bernadette Baum)

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Egypt struggle seen costing Mursi, even if he wins

CAIRO (Reuters) - The crisis unleashed by President Mohamed Mursi's bid to wrap up Egypt's transition on his own terms has eroded his nation's faith in their nascent democracy and will complicate the already unenviable task of government.

His effort to drive through a constitution against the wishes of major sections of society, including a Christian minority, has damaged prospects for building consensus needed to tackle challenges ahead, such as fixing a broken economy.

Having promised to be a president for all, Mursi stands accused of putting the interests of his group, the Muslim Brotherhood, ahead of others who say their aspirations are not reflected in the draft to be put to a December 15 referendum.

On the other side, suspicions harbored by Islamists towards their secular-minded opponents have only deepened as a result of the turmoil ignited by Mursi's effort to fast-track the final stage of the transition from Hosni Mubarak's rule.

With the more extreme among them opposed to the very notion of democracy, the Islamists say their rivals are not respecting the rules of the game that put them in the driving seat by winning free and fair elections.

People anxious to see Egypt recover from two years of turbulence fear bad blood could persist and squash hopes for cooperation needed to help Mursi rule smoothly and deliver much-needed reforms.

"If they succeed in the referendum, they will see that as a step forward, but not without cost," said a Western diplomat.

Though Mursi won international praise for mediating a truce in Gaza, the violence on his own streets worries the West and particularly the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979. U.S. President Barack Obama told Mursi on Thursday of his "deep concern" about casualties during protests.

A victim of the polarization could be the Brotherhood's plans to forge electoral alliances with liberals in forthcoming parliamentary polls. The head of the Brotherhood's Freedom and Justice Party told Reuters this week he saw such alliances as preferable to an ideological tie-up with other Islamists.

The divisions are now playing out in the streets. Seven people were killed and hundreds wounded this week in clashes between Islamists and their rivals. A call by Mursi for dialogue was rebuffed by activists who are to protest again on Friday.

"We said that this state of polarization, if it was not dealt with properly, would reach this point, and it has," said Ayman Al-Sayyad, who quit his post as a Mursi adviser on Wednesday following an eruption of violence.

"This was the scene that we were trying to avoid," he added in an interview with al-Hayat television.

The inclusive image Mursi had tried to build around his administration was one of the first victims of the crisis that mushroomed following a November 22 decree that expanded his powers and protected his decisions from judicial review.

RESIGNATIONS

A Christian and a woman were among the first to resign from his staff, as surprised by the decree as most Egyptians. Despite an early bout of violence, Mursi showed no sign of wavering and appeared to brush off his critics.

"I see things more than they do," he told Time.

With speculation swirling around how he took the decision, Egyptians long suspicious of the Brotherhood have concluded Mursi is running the country at the group's command.

In response, the Islamists complain that many of Mursi's attempts at outreach were rebuffed early on. Their view of the opposition has grown dimmer through the crisis. Brotherhood members have started to dismiss opponents as "feloul", meaning "remnants" - a pejorative implying loyalty to Mubarak.

"The really unfortunate side effect of the last two weeks is the political atmosphere has become really toxic. I fear that could endure long past the current crisis," said Elijah Zarwan, a fellow with the European Council on Foreign Relations.

"The next government is going to have to move very quickly to address many problems and it will need cooperation. In the current atmosphere, it is hard to imagine others cooperating."

Such cooperation will be at a premium for introducing policies aimed at reining in a crushing budget deficit and staving off a balance of payments crisis. Egypt's economy has lost $70 billion to $80 billion of economic output since Mubarak was ousted, in one economist's estimate.

Top of the economic to-do list are measures to cut back on fuel subsidies - one of the biggest drains on state finances. Tweaks to such support are bound to be unpopular in a nation where both rich and poor have grown used to cheap petrol.

"He has inherited an economy that is weak and needs serious surgery, so he is going to have to make controversial decisions over the next year or so," said Simon Kitchen, strategist at EFG-Hermes, an Egyptian investment bank.

"Ideally you want to do that in an environment where you have some sort of political consensus," he said.

"THEY BURNED THEIR BRIDGES"

Some subsidy reform and other steps to cut waste are part of a program agreed in principle with the International Monetary Fund for $4.8 billion loan designed to support the budget.

The IMF board meets on December 19 to discuss approval of the loan, which would be seen by investors as a seal of approval for the government's reform program.

Besides the economy, Mursi needs wider backing to tackle other problems including a judiciary which his opponents agree needs overhaul. But even when he sacked the unpopular, Mubarak-era prosecutor general, Mursi was criticized for showing an autocratic streak in the way he went about it.

In the new system of government outlined in the draft constitution, Egypt's next parliament will have a say over the shape of government. A parliamentary election would go ahead some two months later if the constitution is approved in the referendum.

With that in mind, the Freedom and Justice Party is already eyeing alliances to fight the parliamentary election.

FJP leader Saad al-Katatni said in an interview his preference was for an alliance with liberals, not the hardline Islamists whose backing has helped Mursi through the crisis. "Our preferred option is that the alliance not be ideological so that we don't have a split in the nation," he said.

The Brotherhood had kept the nascent hardline Salafi parties at arm's length as they emerged after Mubarak's political demise. That trend has gradually been reversed as the Brotherhood has looked to fellow Islamists for support.

"They burned their bridges with the secular camp and relied heavily on the Salafi camp. We don't feel that is where they naturally want to be right now," said the Western diplomat, speaking on condition of anonymity.

Sentiment from liberal parties suggests the Brotherhood will struggle to convince liberals that it is a trustworthy partner.

"I don't think the man realizes the degree of rebellion and rage the people have," said Ahmed Said, head of the liberal Free Egyptians Party, referring to Mursi. "The country is totally divided and polarized. You have two nations now."

(Writing by Tom Perry; Editing by Peter Graff)

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Zynga Wants to Get into the Gambling Business

Zynga recently filed a preliminary application for a gambling license in Nevada. We’re not talking about gambling with Farmville credits, either. We’re talking cold hard cash.

RELATED: Irish Olympic Athlete Accused of Betting on an Opponent

Getting a gaming license is no easy task in Nevada. The paperwork that Zynga filed this week is just the beginning of a process that the company’s executives expect to take between a year and 18 months. During that time, the state will review Zynga’s financial records and decide whether or not its fit to hold a license. Even then, it’s unclear exactly what the world of real money online gambling will hold. Only this year did the Justice Department lift its ban on online gambling, and so far, Nevada is the first and only state to begin issuing licenses to companies offering online poker games. And even then, the license is only good inside the state of Nevada, where there’s more sand than people.

RELATED: It’s Official: The Maker of Farmville Is Worth $ 8.9 Billion

Zynga’s willing to take its chances. A lot could happen in the next year or so, and there’s been talk of some sort of agreement between states that would open up the market significantly. And new openings in the market is exactly what Zynga really wants. “As we’ve said previously, the broader U.S. market is an opportunity that’s further out on the horizon based on legislative developments, but we are preparing for a regulated market,” said Zynga Chief Revenue Officer Barry Cottle in a statement.

RELATED: Romney Triumphs in Nevada, Says Obama is ‘Trying to Take a Bow’

This could be really good for Zynga. The five-year-old company has been on a bit of downward spiral, lately. With its earnings per user on a steady decline, Zynga’s stock price has plummeted by more than 75 percent, and a number of key executives have left this year. It’s hard to say exactly why people have cooled on Zynga’s games, most of which live in the Facebook ecosystem, but if the company didn’t do something soon, there was a chance that it could be in real trouble, real soon. And what’s the best way to get out of financial trouble? Gambling. At least if you’re on the right side of the table, it does.

Gaming News Headlines – Yahoo! News

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Jessica Biel: Having Someone to Swim Naked with Is a Perk of Marriage

12/06/2012 at 08:00 AM EST

Perks of married life continue to come easy for Jessica Biel.

After recently telling Ellen DeGeneres that the "most wonderful thing" about being Justin Timberlake's wife is getting to call him her "husband," the Hitchcock star, 30, tells Elle magazine in its January issue that she simply appreciates "having someone ... to share the ups and downs [of life] with [and] have adventures with."

What kind of adventures? Biel likes having "someone to go swimming naked with – that kind of thing," she says.

Another upside to being Mr. Timberlake is benefitting from her man's culinary skills.

"He bakes pies," Biel says. "He's Southern, so he's got all this influence from his grandma. He does a three-layer pie ... and blueberry crunch cake, which is pretty unbelievable. It doesn't happen all that often, thank god. Otherwise, it would be a big problem."

Unfortunately for Biel, though, the ultimate perk of being just married no longer exists.

"Honeymooning is the best thing about being a newlywed," she explains. "I wish I could honeymoon forever."

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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.

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

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Stock futures flat before data, "fiscal cliff" woes linger

NEW YORK (Reuters) - Stock futures were little changed on Thursday in what could be another choppy session as the progress of fiscal negotiations in Washington continues to determine the market's fate.

* President Barack Obama said there could be a quick deal to avert the "fiscal cliff" - tax hikes and spending cuts set to begin next year, possibly driving the U.S. economy back into recession - if Republican leaders agree to raise tax rates for those making more than $250,000 a year.

* While Republican leaders in the House of Representatives insist that raising tax rates on the rich is a no-go, some GOP lawmakers now see it as inevitable to avoid the fiscal cliff.

* Several European equity benchmark indexes hit 2012 highs, boosted by hopes a U.S. budget deal will be reached before the year-end, and that the worst of Europe's debt crisis might be over. <.eu/>

* CME Group , the biggest operator of U.S. futures exchanges, joined several companies Wednesday that were moving 2013 dividend payouts to this month to shield shareholders from expected tax hikes in 2013. Without action from Congress in coming weeks, George W. Bush-era tax cuts on capital gains and dividends will expire at the end of 2012.

* S&P 500 futures dipped a point and were flat in terms of fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 22 points, and Nasdaq 100 futures were flat.

* On the data front, the Labor Department releases first-time claims for jobless benefits for the latest week at 8:30 a.m. ET (1330 GMT). Economists in a Reuters survey forecast a total of 380,000 new filings compared with 393,000 in the prior week.

* H&R Block , the biggest U.S. tax preparer, reported a narrower-than-expected quarterly loss as its cost-reduction measures continued to pay off.

* 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 Thursday. Apple's 6.4 percent drop on Wednesday was its worst daily performance since mid December 2008 and dragged down the Nasdaq Composite.

* The broad market seesawed Wednesday, with the S&P 500 dropping into negative territory before it rebounded off the 1,400 level, seen as a key technical support.

(Reporting by Rodrigo Campos; Editing by Bernadette Baum)

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Egypt military orders rival crowds to disperse

CAIRO (Reuters) - Egypt's Republican Guard ordered rival demonstrators to leave the area around the presidential palace on Thursday after fierce clashes that killed seven people, and Islamists began to comply.

The presidency announced that the Republican Guard, whose duties include protecting the palace, had set a 3 p.m. (1300 GMT) deadline for supporters and opponents of President Mohamed Mursi to quit an area they had turned into a battleground.

The military played a big role in removing President Hosni Mubarak during last year's popular revolt, taking over to manage a transitional period, but had stayed out of the latest crisis.

Mursi's Islamist partisans had fought opposition protesters well into the early hours during dueling demonstrations over the president's decision last month to expand his powers to help him push through a mostly Islamist-drafted constitution.

A Reuters witness said some of the hundreds of Mursi supporters who had camped overnight near the palace perimeter had started leaving before the Republican Guard's deadline.

The commander of the Guard, which has deployed tanks and armored troop carriers to help police pacify the area, said the intention was to separate the adversaries, not to repress them.

"The armed forces, and at the forefront of them the Republican Guard, will not be used as a tool to oppress the demonstrators," General Mohamed Zaki told the state news agency.

Mursi himself, silent in the turbulence of the last few days, will address the nation later in the day, state television quoted a presidential adviser as saying.

After opposing crowds fought long into the night, the streets around the palace were much calmer in the morning, apart from the brief period of rock-throwing between the hundreds of Islamists and dozens of opposition partisans still at the scene.

STABILITY AT RISK

Army officers on the spot urged the combatants to back off and stop bloodshed that is further dividing Egypt and imperiling its quest for political stability and economic recovery nearly two years after mass protests overthrew Mubarak.

Officials said 350 people had been wounded, in addition to the seven deaths, underlining the scale of the conflict in the Egyptian capital and other cities, following bitter rows over Mursi's assumption of wide powers on November 22 to help him push through a mostly Islamist-drafted constitution.

Six of the dead were Mursi supporters, the Muslim Brotherhood said. Each side blamed the other for the violence.

The Supreme Guide of the Brotherhood, to which Mursi belonged before he was narrowly elected president in June, appealed for unity. Divisions among Egyptians "only serve the nation's enemies", Mohamed Badie said in a statement.

With at least seven tanks at the palace corners, backed by about 10 armored troop carriers and 20 police trucks, the two sides mostly shouted slogans at each other from a distance.

Mursi's opponents accuse him of seeking to create a new "dictatorship" with his November 22 decree and were further angered when an Islamist-dominated assembly hastily approved a draft constitution due to go to a referendum on December 15.

The president has defended his decree as necessary to prevent courts still full of judges appointed by Mubarak from derailing a constitution vital for Egypt's political transition.

Around the palace, traffic moved through streets strewn with rocks thrown during violence in which petrol bombs and guns were also used. Hundreds of Mursi supporters had remained there over night, many wrapped in blankets and some reading the Koran.

"We came here to support President Mursi and his decisions. He is the elected president of Egypt," said demonstrator Emad Abou Salem, 40. "He has legitimacy and nobody else does."

Opposition protester Ehab Nasser el-Din, 21, his head bandaged after being hit by a rock the day before, decried the Muslim Brotherhood's "grip on the country", which he said would only tighten if the new constitution is passed.

Another protester, Ahmed Abdel-Hakim, 23, accused the Brotherhood of "igniting the country in the name of religion".

WESTERN CONCERN

The United States, worried about the stability of an Arab state which has a peace deal with Israel and which receives $1.3 billion in U.S. military aid, has urged dialogue. Britain also called for restraint and an "inclusive" political process.

Vice President Mahmoud Mekky proposed "personal ideas" for a negotiated way out on Wednesday, saying amendments to disputed articles in the constitution could be agreed with the opposition. A written agreement could then go to parliament, to be elected after this month's referendum on the constitution.

"There must be consensus," he told a news conference in the presidential palace as fighting raged outside on Wednesday. But the opposition stuck by its demand for Mursi to cancel the November 22 decree and postpone the referendum before any dialogue.

But Mursi has shown no sign of buckling under pressure from protesters, confident that the Islamists, who have dominated both elections since Mubarak was overthrown, can win the referendum and the parliamentary election to follow.

As well as relying on his Brotherhood power base, Mursi may also draw on a popular yearning for stability and economic revival after almost two years of political turmoil.

The Egyptian pound plunged 4 percent on Thursday to its lowest level in eight years, after previously firming on hopes that a $4.8 billion IMF loan would stabilize the economy. The Egyptian stock market fell 4.4 percent after it opened.

(Additional reporting by Tom Perry and Marwa Awad; Writing by Alistair Lyon; Editing by Giles Elgood)

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Software guru McAfee says to seek asylum in Guatemala

GUATEMALA CITY (Reuters) – U.S. anti-virus software guru John McAfee, who is on the run from police in Belize seeking to question him in a murder probe, has crossed into Guatemala and said on Tuesday he will seek political asylum there.

McAfee has been in hiding for three weeks since police in Belize said they wanted to question him as “a person of interest” about the murder of fellow American Gregory Faull, with whom McAfee had quarreled.

McAfee smuggled himself and his girlfriend, Samantha, across the porous land border that Belize shares with Guatemala. He stayed at a hotel in a national park before heading for Guatemala City on Monday evening.

“I have no plans much for the future now. The reason I chose Guatemala is two-fold,” McAfee told Reuters by telephone from Guatemala’s Supreme Court, flanked by his lawyer, former attorney general and lawyer Telesforo Guerra.

“It is a country bordering Belize, it is a country that understands the corruption within Belize and most importantly, the former attorney general of the country is Samantha’s uncle and I knew that he would assist us with legal proceedings.”

McAfee has denied involvement in the murder and told Reuters on Monday he would not turn himself in. He posted repeatedly on his blog www.whoismcafee.com while on the run, describing how he would constantly change his disguise to elude capture.

On Tuesday, he appeared with his hair and goatee died black, and wearing a dark suit and tie – a far cry from the surfer-style blonde hair highlights, shorts and tribal-tattooed bare shoulders he sported in Belize.

“(Guerra) is now attempting to get political asylum for myself and for Sam. I don’t think there will be much of a problem. From here I can speak freely and safely,” McAfee said.

TECH GENIUS, “BONKERS”

McAfee says he believes authorities in Belize would kill him if he turned himself in for questioning. Belize’s prime minister has denied the claim and called the 67-year-old paranoid and “bonkers.”

On the Caribbean island of Ambergris Caye, where McAfee has lived for about four years, residents say he is eccentric, impulsive, erratic and at times unstable, with a penchant for guns and young women.

He would often be seen with armed bodyguards, pistols tucked into his belt, and McAfee’s neighbor had complained about the loud barking of dogs that guarded his exclusive beachside compound.

His run-in with authorities in Belize is a world away from a successful life in the United States, where he started McAfee Associates in 1989 and made millions of dollars developing the Internet anti-virus software that carries his name.

There was already a case against McAfee in Belize for possession of illegal firearms, and police had previously raided his property on suspicion he was running a lab to make illegal synthetic narcotics.

McAfee says he has been persecuted for refusing to donate money to politicians, that he loves Belize, and considers it his home.

Guatemala is a canny choice to seek refuge. It has long been embroiled in a territorial dispute with Belize. Guatemala claims the southern half of Belize and all of its islands, or cayes, rightfully belong to it. There is no extradition treaty between the two countries.

A Guatemalan government source said there was “no reason” to detain McAfee because there was no legal case against him pending in the country.

Harold Caballeros, Guatemala’s foreign minister, said his government was unaware of any arrest warrant and would study McAfee’s asylum request once presented, saying its success would “depend on the arguments.”

Guerra told Reuters McAfee would return to Belize once his situation in Guatemala was made legal, citing the fact he had crossed into the country illegally to avoid capture by police in Belize.

“He can go to the United States, there is no problem with that,” he added. “We have asked the U.S. embassy for support with our (asylum) request.”

He said the asylum request would be formally presented on Wednesday.

The U.S. Embassy in Guatemala City said in a statement McAfee would have to work within the country’s legal framework, but declined to elaborate. “The embassy does not comment on the actions of American citizens, due to privacy considerations.”

(Reporting by Simon Gardner and Gabriel Stargardter; Editing by Kieran Murray and Eric Walsh)

Internet News Headlines – Yahoo! News

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Kate's Pregnant! How the Queen Found Out

By Michelle Tauber

12/05/2012 at 08:00 AM EST

They're having a baby! Now what?

With the big news that Prince William and Kate, both 30, are expecting their first child, friends and family greeted the announcement with joy – and caution.

The Duchess of Cambridge remains hospitalized with a severe form of morning sickness.

"There is a real excitement," a royal source tells PEOPLE in this week's cover story, "but obviously people are anxious about the Duchess."

The couple had hoped to keep the news secret until at least Christmas, but Kate's illness prompted them to reveal it early.

Palace sources say William informed the Queen, his father, Prince Charles, and his brother Prince Harry – the British Army captain is currently stationed in Afghanistan – before his wife was hospitalized Monday, with friends only hearing the announcement when it went public.

Not surprisingly, the pair timed the pregnancy so as not to overshadow the Queen's Diamond Jubilee, nor to disrupt a major foreign tour.

"I don't think anything is left to chance," says Majesty editor Ingrid Seward. "Kate is probably one of the most organized [royal] women we've ever known."

For much more on the royal pregnancy, including the couple's plans for a nanny, baby names and royal maternity fashions through the years, pick up this week's PEOPLE, on newsstands Friday

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Study: Drug coverage to vary under health law

WASHINGTON (AP) — A new study says basic prescription drug coverage could vary dramatically from state to state under President Barack Obama's health care overhaul.

That's because states get to set benefits for private health plans that will be offered starting in 2014 through new insurance exchanges.

The study out Tuesday from the market analysis firm Avalere Health found that some states will require coverage of virtually all FDA-approved drugs, while others will only require coverage of about half of medications.

Consumers will still have access to essential medications, but some may not have as much choice.

Connecticut, Virginia and Arizona will be among the states with the most generous coverage, while California, Minnesota and North Carolina will be among states with the most limited.

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Online:

Avalere Health: http://tinyurl.com/d3b3hfv

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Stock futures up as China fuels growth hopes; data on tap

NEW YORK (Reuters) - Stock futures rose on Wednesday after comments from China's new leader boosted global growth expectations.

* Chinese Communist Party chief Xi Jinping said the country would maintain its fine-tuning of economic policies in 2013 to ensure stable economic growth. That sparked a rally in Chinese shares, with the Shanghai Composite Index <.ssec> surging 2.9 percent.

* Among his key priorities, Xi listed tax reform, urbanization and allowing the market to play a bigger role in setting resource prices.

* On the domestic front, investors awaited ADP's November employment report, due at 8:15 a.m. ET (1315 GMT). Economists in a Reuters survey expect 125,000 jobs were created versus 158,000 in October.

* Other data due include factory orders and ISM's November non-manufacturing index, both at 10:00 a.m. ET (1500 GMT).

* Nokia is to partner with China Mobile , the world's biggest operator, to launch a version of its flagship Lumia smartphone tailored for the world's largest market. U.S.-listed shares of Nokia rose 2.9 percent to $3.54 in premarket trading.

* S&P 500 futures rose 3.7 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 41 points, and Nasdaq 100 futures added 2.25 points.

* Repsol filed a U.S. lawsuit to block Chevron Corp's deal with Argentina's YPF , ramping up the Spanish oil company's legal response to the loss of its assets in Argentina.

* Pandora Media Inc

lowered its fourth-quarter earnings forecast, blaming a pull-back by advertisers on concerns about the U.S. budget, but analysts suggested it was due more to increasing competition.

* The U.S. Senate on Tuesday voted 98-0 to approve a wide-ranging defense bill that authorizes $631.4 billion in funding for the U.S. military, the war in Afghanistan and nuclear weapons.

* Walt Disney gave a much needed boost to Netflix , becoming the first major Hollywood studio to use the video service to bypass premium channels like HBO that traditionally controlled the delivery of movies to TV subscribers.

* The U.S. securities regulator is investigating a $10 million stock sale in March by Steven Fishman, chief executive of close-out retailer Big Lots Inc , who announced his retirement on Tuesday, the Wall Street Journal reported, citing a person familiar with the inquiry.

* U.S. stocks finished slightly lower in quiet trading Tuesday as the back-and-forth wrangling over the U.S. budget gave investors little reason to act.

(Editing by Bernadette Baum)

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Confrontation between rival protesters looms in Egypt crisis

CAIRO (Reuters) - Egypt's Muslim Brotherhood called for a rally backing President Mohamed Mursi outside his palace on Wednesday and leftists planned a counter-demonstration, raising fears of clashes in a crisis over a disputed push for a new constitution.

Mursi returned to work at his compound a day after it came under siege from opposition protesters furious at his drive to ratify a new constitution in a snap referendum set for December 15 after temporarily expanding his powers by decree.

The Islamist president said he acted to prevent courts still full of appointees from the era of autocratic predecessor Hosni Mubarak from derailing the draft constitution meant to complete a political transition in the Arab world's most populous state.

The Brotherhood, from which Mursi emerged to narrowly win a free election in June, summoned supporters to a demonstration outside the palace in response to what it termed "oppressive abuses" by opposition parties.

Brotherhood spokesman Mahmoud Ghozlan was quoted on its Facebook page as saying opposition groups "imagined they could shake legitimacy or impose their views by force".

Leftist opposition leader Hamdeen Sabahy promptly urged his supporters to go to the streets as well, heightening the chances of confrontation between Islamists and their opponents.

A spokeswoman for Sabahy's Popular Current movement asked protesters to head to the palace to reinforce those still camped out there after Tuesday evening's protests, in which officials said 35 protesters and 40 police were wounded.

Although they fired tear gas when protesters broke through barricades to reach the palace walls, riot police appeared to handle those disturbances with restraint.

About 200 protesters camped out overnight, blocking one gate to the palace in northern Cairo, but traffic was flowing normally and riot police had been withdrawn.

"Our demands to the president: retract the presidential decree and cancel the referendum on the constitution," read a placard hung by demonstrators on a palace gate.

The rest of the Egyptian capital was calm, despite the political furor over Mursi's November 22 decree handing himself wide powers and shielding his decisions from judicial oversight.

Crowds had gathered on Tuesday for what organizers dubbed a "last warning" to Mursi. "The people want the downfall of the regime," they chanted, roaring the signature slogan of last year's uprising that ousted Mubarak.

But the "last warning" may turn out to be one of the last gasps for a disparate opposition that has little chance of stopping next week's vote on a constitution drafted over six months and swiftly approved by an Islamist-dominated assembly.

MURSI STANDS HIS GROUND

Facing the gravest crisis of his six-month-old tenure, the Islamist president has shown no sign of buckling under pressure, confident that the Muslim Brotherhood and its Islamist allies can win the referendum and a parliamentary election to follow.

Many Egyptians yearn for an end to political upheaval that has scared off investors and tourists, damaging the economy.

Ahmed Kamel, spokesman for the Congress Party led by former Arab League chief Amr Moussa, said Mursi should meet opposition demands, not call for an Islamist counter-demonstration.

Some protesters have already gone beyond opposition calls for Mursi to scrap his decree, defer the referendum and set up a "representative committee" to revise the draft constitution, instead demanding the president's overthrow.

"The demands of the street are moving faster than those of the politicians," said Elijah Zarwan, a fellow with the European Council on Foreign Relations. "Now is the time for the Egyptian liberals to negotiate without conditions."

COURT PROTEST

Dozens of pro-Mursi demonstrators, watched by equal numbers of police, waved flags outside the Supreme Constitutional Court, whose rulings have complicated the Islamists' rise to power.

"You are not a political agency," read one banner held by the demonstrators, addressing a court that in June ordered the dissolution of the Islamist-led lower house of parliament.

Mursi issued his decree temporarily putting his actions above the law to forestall any court ruling to dissolve the upper house or the assembly that wrote the constitution.

State institutions, with the partial exception of the judiciary, have mostly fallen in behind Mursi.

The army, the power behind all previous Egyptian presidents in the republic's six-decade history, has gone back to barracks, having apparently lost its appetite to intervene in politics.

In a bold move, Mursi sacked Mohamed Hussein Tantawi, the Mubarak-era army commander and defense minister, in August and removed the sweeping powers that the military council which took over after Mubarak's fall had grabbed two months earlier.

The liberals, leftists, Christians, ex-Mubarak followers and others opposed to Mursi, elected in a close result against a secular rival, have yet to generate a mass movement or a grassroots political base to challenge the Brotherhood.

Protesters have scrawled "leave" over Mursi's palace walls, but the president has made clear he is not going anywhere.

"The crisis we have suffered for two weeks is on its way to an end, and very soon, God willing," Saad al-Katatni, head of the Brotherhood's Freedom and Justice Party, told Reuters.

Investors have seized on hopes that Egypt's turbulent transition, which has buffeted the economy for two years, may soon head for calmer waters, sending stocks 1.6 per cent higher after a 3.5 percent rally on Tuesday.

The most populous Arab nation has turned to the IMF for a $4.8 billion loan to help it out of a crisis that has depleted its foreign currency reserves.

The government said on Wednesday the process was on track and Egypt's request would go to the IMF board as expected.

(Additional reporting by Tom Perry and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

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Yahoo sees several flaws in $2.7 billion Mexico ruling: source

SAN FRANCISCO (Reuters) – Yahoo Inc believes it has “numerous” grounds to appeal a Mexico City civil court‘s $ 2.7 billion preliminary judgment against the company, including both errors in procedure and in application of law, a person familiar with the matter told Reuters on Monday.

The ruling in the case, which involves allegations of breach of contract related to an online yellow pages listings service, was made by the 49th Civil Court of the Federal District of Mexico City, Yahoo said on Friday.

The case has perplexed many investors and tech-industry observers since Yahoo disclosed it, particularly given the large value of the “non-final” judgment.

The lawsuit was brought by Worldwide Directories S.A. de C.V. and Ideas Interactivas S.A. de C.V. against Yahoo and Yahoo de Mexico, Yahoo said.

The companies could not be reached for comment, although Carlos Bazan-Canabal, who describes himself as a founder of Worldwide Directories, told Reuters via email that he had contracted a U.S.-based law firm to handle the Yahoo case.

He declined to comment further on the matter.

Bazan-Canabal operates a number of web sites. He said on one that he joined Yahoo in 1999, adding that he is a former executive of Yahoo Mexico, and that he helped to launch that company. Yahoo could not immediately be reached for comment on this.

The details of the suit remained unclear on Monday. Documents from local courts in Mexico are not available for public consultation. Yahoo declined to comment.

Yahoo signed a commercial relationship with the two companies in 2002, the person familiar with the matter said. Yahoo terminated the relationship with the companies in 2009, the person said.

Yahoo’s appeal is expected to be heard by a panel of three judges in a superior court in Mexico City, the person said who was not authorized to speak publicly on the matter. It was not clear when Yahoo might file its appeal.

Yahoo’s most recent 10Q filing, which lists major ongoing legal proceedings, makes no mention of the lawsuit.

“We believe the $ 2.7 billion figure appears high based on the seemingly small size of Yahoo’s business in Mexico, but we believe shares could trade off modestly on the news,” wrote JP Morgan analyst Doug Anmuth in a note to investors following Friday’s announcement.

“It’s not clear how the Mexican court arrived at the $ 2.7 billion figure, but it would represent 40 percent of our projected 2012 year-end cash balance for Yahoo,” and equate to about $ 2.30 per share, he wrote.

Shares of Yahoo closed Monday’s regular session down 1.2 percent, or 22 cents, at $ 18.55.

(Additional reporting by Dave Graham in Mexico City and Sarah McBride in San Francisco; Editing by Bernard Orr)

Tech News Headlines – Yahoo! News

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Prince Harry Moves Down the Line of Succession with Royal Baby

By Maggie Coughlan

12/04/2012 at 08:00 AM EST

Saved by the baby!

With news the Duke and Duchess of Cambridge are expecting their first child, uncle-to-be Prince Harry must be thrilled – for a number of reasons.

Once the child is born, Harry – who is in Afghanistan serving with the British army – gets bumped down the line of succession to the throne.

Following the currently reigning monarch Queen Elizabeth, the next in line is Prince Charles, followed by Prince William and then Harry. But with the birth of a baby – regardless of its sex – succession will go from Prince William to his heir and then to Harry.

Harry – whose antics have landed him in hot water with the public and the Palace before – may welcome the chance to step away from the spotlight.

Perhaps the 28-year-old – who has been romantically linked to pop singers and models – will focus on finding love. He told Katie Couric last May that he "longed for kids since he was very, very young" and was "waiting to find the right person, someone who's willing to take on the job."

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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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