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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India Ink: Newswallah: Bharat Edition

Jammu and Kashmir: In the legislative council elections held this week for four seats under the quota for panchayats, or village councils — the first such polls in 38 years — the governing coalition of National Conference and Indian National Congress won, Kashmir Live reported. The voters comprised 33,540 elected village council members and heads from the Jammu region and Kashmir Valley, according to an IANS report on the IBNLive Web site.

Arunachal Pradesh: Three years after the central government released three million rupees to the state to implement the national health insurance plan known as the Rashtriya Swastha Bima Yojana, potential  beneficiaries are still waiting, according to a PTI report in The Hindu Business Line. State officials said a memorandum of agreement between the state and Royal Sundaram, the insurance company chosen to implement the program, had yet to be signed, according to the report.

Manipur: The Supreme Court of India said Thursday that a special investigating team should be established to look into so-called encounter killings in the state, according to a PTI report carried by IBNLive. The court was responding to litigation filed by a group representing the families of alleged victims of “fake encounters” carried out by security forces.  

Rajasthan: A program to improve broadband connectivity in rural areas has begun in Arain town in Ajmer district, The Times of India reported. The goal is to give 250,000 elected village councils across the country broadband Internet connections within a year. The Universal Service Obligation Fund of India, funded by a percentage of all telecom companies’ revenue, is financing the project.  

Maharashtra: In a recent report, India’s comptroller and auditor general chastised the armed forces authorities in Pune for failing to prevent the unauthorised use of defense assets, Daily News & Analysis reported. According to the report, the Army Public School, which is run by the Army Welfare Education Society, was using eight military-owned buildings in violation of Ministry of Defense guidelines.

Andhra Pradesh: At the urging of Congress lawmakers pushing to establish Telangana as a separate state, the governing United Progressive Alliance on Wednesday agreed to hold an all-party meeting to discuss the controversial bid, according to a report in The New Indian Express.  Legislators from Telangana, which is a region in Andhra Pradesh, said the meeting would be held on Dec. 28.

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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.

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

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.


___


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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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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The X Factor Reveals Its Four Semi-Finalists






The X Factor










12/06/2012 at 09:20 PM EST



There were tears on The X Factor Thursday night.

With only four spots in next week's semi-finals, the six acts who performed two songs each Wednesday night were a tense bunch. Especially after last week's shocking elimination that sent home fan favorite Vino Alan.

A majority of PEOPLE.com readers picked Demi Lovato's only remaining contestant, CeCe Frey, as the singer who most deserved elimination. Was she able to make it through one more week? Keep reading for all the results ...

CeCe Frey was the first to go.

"I'm proud of everything that I've done on this show," she said. "I hope I've taught everyone at home that you need to love who you are, because the more you love who you are, the less you're going to need anybody else to."

Her coach tried to avoid tears but shed a few anyway. "I've grown so close to you," Demi said. "And I'm just so proud of you."

Three acts were then declare safe: Simon Cowell's boy band, Emblem3; Britney Spears's frontrunner, Carly Rose Sonenclar; and L.A. Reid's country singer, Tate Stevens, also a frontrunner.

That left Team Britney's Diamond White and Simon's other group, Fifth Harmony, to sing for survival.

Fifth Harmony sang Mariah Carey's "Anytime You Need a Friend," and Diamond sang Lee Ann Womack's "I Hope You Dance."

As expected, Simon and Britney voted to send home each other's acts. But it was the end of the road for Diamond, after L.A. and Demi both voted to send her home as well.

"I'm just thinking of Cher Lloyd right now," she said of the "Want U Back" singer. "She came in fifth and look where she is."

Here's how the top four ranked:
1. Tate Stevens
2. Carly Rose Sonenclar
3. Emblem3
4. Fifth Harmony

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Stock index futures fall, focus on jobs data

LONDON (Reuters) - Stock index futures pointed to a lower open on Wall Street on Friday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 falling 0.1 to 0.2 percent.


U.S. non-farm employment, due at 8.30 a.m. EST, is forecast to have risen by 93,000 jobs last month after gaining 171,000 in October, according to a Reuters survey. The unemployment rate is seen holding steady at 7.9 percent.


Superstorm Sandy likely put a dent in U.S. jobs growth in November, temporarily interrupting a recently established trend of modestly rising payrolls.


Amarin Corporation was down 18.4 percent in late trading on Thursday after the bio-pharmaceutical company said it raised $100 million in non-equity financing that will help it form a sales force to launch its heart drug Vascepa, but disappointed investors hoping for a sale or partnership.


Smith & Wesson Holding Corp was up 5.8 percent, after the bell on Thursday following the release of its results, while GEO Group was up 6.2 percent after the company announced a special dividend.


Brent crude steadied above $107 per barrel, but prices were headed for their biggest weekly loss in more than a month on worries about the euro zone economy and a looming fiscal crisis in the United States, the world's top oil consumer.


European shares <.fteu3> were down 0.2 percent, pressured by lower German and Italian shares, after Germany's central bank cut its growth outlook for Europe's largest economy next year, and on political uncertainty in Italy.


U.S. stocks closed modestly higher on Thursday, a day ahead of the key monthly jobs report, as a rebound in shares of Apple helped boost technology shares.


The Dow Jones industrial average <.dji> rose 39.55 points, or 0.30 percent, to 13,074.04 at the close. The Standard & Poor's 500 Index <.spx> added 4.66 points, or 0.33 percent, to 1,413.94. The Nasdaq Composite Index <.ixic> gained 15.57 points, or 0.52 percent, to close at 2,989.27.


(Reporting by Atul Prakash)



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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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British News Media Agree to More Powerful Regulator





LONDON — The editors of Britain’s principal national newspapers met Wednesday under pressure from Prime Minister David Cameron and agreed to the establishment of an independent newspaper regulator with far greater powers than those available to the existing watchdog.




But the editors, meeting over breakfast at a London restaurant, steered a careful course, embracing most but not all of the measures recommended in a report last week by a high-ranking judge, Lord Justice Sir Brian Leveson. They rejected the judge’s most contentious proposal, for a new law that would put teeth into a state-sanctioned system of oversight.


That placed the editors broadly in line with the approach taken by Mr. Cameron, who has courted political opprobrium, particularly on the left, by saying that writing any part of a new regulatory system into law would risk eroding 300 years of press freedom in Britain. Reacting to the Leveson report last Thursday, the prime minister warned that once such a law existed, politicians would be tempted to broaden it, and start the country down the road to state control of the news media.


Lord Justice Leveson led a nine-month inquiry into a scandal surrounding abusive and illegal newspaper practices, including hacking into private computers and voice mail and bribing police officers and other public officials to obtain confidential information — practices that appeared to have been rife in some newsrooms.


The Leveson inquiry and the parallel investigations by the police have focused especially on two mass-circulation tabloids that anchored Rupert Murdoch’s newspaper empire in Britain, The Sun and The News of the World. The company shut down The News of the World in July 2011, at the height of the scandal.


In effect, some analysts said, the editors’ agreement reflects the price that Britain’s famously freewheeling newspapers are now paying for the tabloid papers’ excesses.


Though Britain has no formal equivalent of the First Amendment, its tabloid newspapers in particular have prided themselves on being the scourge of the establishment, of privilege and of claims to a right of privacy by celebrities and others in the news. That attitude could now be curbed, perhaps even radically, by a new regulatory body responding to the public outrage stirred by the recent scandals, these analysts said.


The newspaper The Guardian reported on its Web site on Wednesday that the editors — including representatives of the sensationalist “red top” tabloids like The Sun, the country’s most lucrative daily — had endorsed 40 of the 47 principal recommendations made in Lord Justice Leveson’s 2,000-page report.


They agreed to scrap the weak and widely discredited Press Complaints Commission, set up by newspaper barons 20 years ago, and replace it with a new body appointed from outside the newspaper industry and the government. It would have a much larger budget, a strong investigative staff, and the power to order errant newspapers to publish prominent apologies and pay fines up to £1 million, or $1.6 million, or 1 percent of a publication’s annual revenue, whichever is less. Effectively, subscribing to the new system would be compulsory, since failure to sign up would deny newspapers access to a new system for arbitrating libel suits that could be far cheaper than fighting suits in the courts.


“We endorsed virtually all the report, barring the clauses that dealt with statutory underpinning,” one of the editors who attended Wednesday’s meeting said. He spoke on the condition of anonymity, citing an agreement among the roughly 20 editors not to comment individually on the record while details of a new system are being worked out.


Newspapers represented at the meeting included broadsheets like The Guardian, The Observer, The Daily Telegraph, The Independent and two Murdoch-owned titles, The Times and The Sunday Times; two weekly journals, The Spectator and The Economist; and mass-market tabloids like The Daily Mirror, The Daily Express and Mr. Murdoch’s Sun, with readerships in the millions.


The editor who spoke said that the group voted clause by clause on the 47 Leveson recommendations in a 90-minute meeting marked by a sense of urgency because of the mounting political pressure for tougher measures to rein in the news media. “There was a feeling that if we were to avoid something nasty, we had to do something quickly,” he said.


On the political left and center-left, the Labour Party and the Liberal Democrats are pressing for a statute that would put the newspapers on notice that they would defy the new system at their peril. With his own Conservative Party deeply split on the issue, Mr. Cameron told the editors at a meeting on Tuesday that they should endorse the principles behind the Leveson proposals, and that if they did not, they would “get a statute,” an editor who was present said.


With the editors now in line, senior aides to Mr. Cameron have said they will try to defuse the situation with a more detailed blueprint for an oversight system that would be independent but not depend on statutory backing, perhaps with a senior judge to act as a referee on appointments to the new regulatory body and on contested findings.


The editors’ action put newspapers with a combined daily and weekend circulation of more than eight million copies — said to be read by more than one-third of Britain’s population of 62 million — on record in favor of substantially toughening the system of self-regulation by the newspapers that has been in place since 1953.


In its current form, set up in 1991 after an earlier threat of government regulation, a voluntary body passes judgment on accusations of wrongdoing by the newspapers that participate. But critics who testified before the Leveson inquiry, including victims of the tabloid excesses, said the commission has been too pliant, especially in dealing with rambunctious tabloids like The Sun, which have had little to fear from the commission’s reproaches.


This article has been revised to reflect the following correction:

Correction: December 6, 2012

An earlier version of this article referred incorrectly to the jurisdiction of a proposed independent regulator in Britain. The new regulator would be charged with oversight of newspapers, not of the broader news media.



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Frank Ocean, Taylor Swift Collect Grammy Nominations















12/06/2012 at 01:00 AM EST



How FUN!

The Grammys handed out their nominations Wednesday night at a concert in Nashville and there was a decidedly youthful feel: Taylor Swift earned a nod for record of the year and the band FUN joined Frank Ocean with the trifecta of album and record of the year and best new artist.

In the country categories, Blake Shelton is up against Carrie Underwood for best solo performance and Miranda Lambert was nominated for best album.

Here are some of the major nominations. For a complete list go to Grammy.com:

Album of the Year:
El Camino – The Black Keys
Some Nights– FUN.
Babel – Mumford & Sons
Channel Orange – Frank Ocean
Blunderbuss – Jack White

Record of the Year:
Lonely Boy – The Black Keys
Stronger (What Doesn't Kill You) – Kelly Clarkson
We Are Young – FUN. featuring Janelle MonĂ¡e
Somebody That I Used To Know – Gotye Featuring Kimbra
Thinkin Bout You – Frank Ocean
We Are Never Ever Getting Back Together – Taylor Swift

Best New Artist:
Alabama Shakes
FUN
Hunter Hayes
The Lumineers
Frank Ocean

Song Of The Year:
"The A Team" – Ed Sheeran, songwriter (Ed Sheeran)
"Adorn" – Miguel Pimentel, songwriter (Miguel)
"Call Me Maybe" – Tavish Crowe, Carly Rae Jepsen & Josh Ramsay, songwriters (Carly Rae Jepsen)
"Stronger (What Doesn't Kill You)" – Jörgen Elofsson, David Gamson, Greg Kurstin & Ali Tamposi, songwriters (Kelly Clarkson)
"We Are Young" – Jack Antonoff, Jeff Bhasker, Andrew Dost & Nate Ruess, songwriters (FUN. featuring Janelle MonĂ¡e)

Best Country Solo Performance:
"Home" – Dierks Bentley
"Springsteen" – Eric Church
"Cost Of Livin'" – Ronnie Dunn
"Wanted" – Hunter Hayes
"Over" – Blake Shelton
"Blown Away" – Carrie Underwood

Best Country Album:
Uncaged – Zac Brown Band
Hunter Hayes – Hunter Hayes
Living For A Song: A Tribute To Hank Cochran – Jamey Johnson
Four The Record– Miranda Lambert
The Time Jumpers – The Time Jumpers

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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 signal early gains

PARIS (Reuters) - Stock futures pointed to a higher open on Wall Street on Thursday, with futures for the S&P 500 up 0.1 percent, Dow Jones futures up 0.2 percent and Nasdaq 100 futures up 0.1 percent at 5:20 a.m. EDT.


* European stocks were up on Thursday morning, with a number of benchmark indexes hitting their highs for the year, 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.


* Investors will keep a close eye on the European Central Bank on Thursday, which is expected to keep interest rates on hold but may offer clues on its policy path for next year with updated forecasts likely to present a grim outlook for the euro zone economy in 2013.


* Chevron Corp added $15 billion to the cost of the Gorgon liquefied natural gas (LNG) export complex, as the U.S. oil company's largest single development joins a growing list of Australian LNG projects to run over budget.


* U.S. securities regulators charged a Wells Fargo investment banker and nine others with fraud on Wednesday in connection with their alleged role in an insider-trading ring that earned more than $11 million by trading on tips about impending mergers.


* CME Group Inc , the biggest operator of U.S. futures exchanges, on Wednesday joined a number of companies moving 2013 dividend payouts to this month to shield shareholders from expected tax increases.


* Starbucks Corp plans to increase the number of its cafes in the Americas by more than 20 percent by opening more than 3,000 new shops there in the next five years as it looks to rely on tea and juice as much as coffee, it said on Wednesday.


* Apple Inc's rank in China's smartphone market, which is set to become the world's largest this year, fell to No.6 in the third quarter as it faces tougher competition from Chinese brands, research firm IDC said on Thursday.


* Research In Motion outlined a step-by-step program on Thursday to help its large base of enterprise clients transition across to its soon to be launched new BlackBerry 10 platform.


* U.S. tax preparer H&R Block Inc reported a lower quarterly loss, helped by higher savings from cost reduction measures aimed at narrowing its focus to its core tax business.


* On the macro front, investors awaited weekly jobless claims, due at 8:30 a.m. EDT. Economists in a Reuters survey forecast a total of 380,000 new filings compared with 393,000 in the prior week.


* A volatile trading session ended with U.S. stocks mostly higher on Wednesday, even as Apple, the most valuable company in the United States, suffered its worst day of losses in almost four years.


In a strange occurrence, Apple accounted for the entirety of the Nasdaq 100's <.ndx> fall of 1.1 percent, while the Dow industrials - which do not include Apple as a component - enjoyed the best day since November 28.


(Reporting by Blaise Robinson; Editing by Toby Chopra)



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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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Law Students in Austria Challenge Facebook Privacy Policy





BERLIN — An Austrian student group said Tuesday that it planned to challenge Facebook’s privacy policies in Irish court, alleging that the social networking giant had failed, despite repeated requests and formal complaints made by its members, to adapt to the restrictions of European data protection law.







Herwig Prammer/Reuters

Max Schrems, a student at the University of Vienna, said Facebook’s privacy policies were too broad and violated European law.







The group, which calls itself Europe vs. Facebook, said it would begin collecting donations to challenge the policy in Ireland, where the company’s European business is incorporated. Max Schrems, an Austrian law student at the University of Vienna who organized the effort, said Facebook had no interest in adapting its service to meet stricter European privacy requirements.


“We have been pursing this for more than a year with Facebook, but the company has done only about 10 percent of what we had asked them to do,” said Mr. Schrems, 25. “Therefore, we are preparing to go to court.”


Facebook, in a statement, said its European privacy policy had been vetted and approved by Irish regulators and was in compliance with European law.


“The way Facebook Ireland handles personal data has been subject to thorough review by the Irish Data Protection Commissioner over the past year,” the company said. “Nonetheless, we have some vocal critics who will never be happy whatever we do and whatever the D.P.C. concludes.”


Mr. Schrems’s group, which he said was made up of about 10 students at the University of Vienna, filed 22 complaints in 2010 with the Office of the Data Protection Commissioner in Ireland, which regulates Facebook’s European business because it is incorporated there.


As a result of those complaints, the regulator conducted a public audit of Facebook’s privacy policies. In September it announced an agreement with the company that required, among other changes, that Facebook shorten the time it retained consumer data and refrain from building a photo archive on individuals without their prior consent.


But Mr. Schrems said in an interview that Facebook was still violating European law in many areas, including a requirement that Facebook provide users who request it with a full copy of all the data the company has collected on them. Mr. Schrems, a Facebook user since 2007, said he requested his own summary file from Facebook in 2010.


The company, whose global headquarters is in Menlo Park, California, responded by creating a self-service tool for users to extract the data, which Mr. Schrems said supplied him only with information going back to 2010. In addition, he alleged that Facebook’s privacy policy, which users are required to agree to before they can use the service, is too broad and violates European law.


“It is basically a collection of American legalese, which is intentionally vague and gives the company adequate leeway to do basically anything they want with your data,” Mr. Schrems said.


Thilo Weichert, the data protection supervisor for the German state of Schleswig-Holstein, which has also brought legal action against Facebook, said he supported the Austrian student group’s efforts.


“Facebook’s policy is much too vague and broad and does not conform with German or European law,” Mr. Weichert said in an interview. “We think that European privacy officials need to take common action on this.”


Mr. Weichert issued an administrative order in August 2011 that barred businesses in the state, which is located along Germany’s northern border with Denmark, from using Facebook’s social plug-ins like the Like button and Fan pages. The rationale for the order: Those applications collect information on users without their consent by inserting cookies, which track individual computers, through a user’s Web browser.


In November of last year, Mr. Weichert sued several local business organizations, including the state’s own Industrie- und Handelskammer, the equivalent of the local chamber of commerce, for creating their own fan pages on Facebook. The chamber and businesses that have not been identified have challenged that suit, which is pending in court in Kiel.


The privacy policies of Facebook, Google and some other U.S.-based Web companies have come under increasing criticism in Europe.


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The Voice Reveals Top Four Contestants















12/04/2012 at 09:35 PM EST



The Voice"'s top six contestants were under double pressure Monday night when they had to sing two songs each. But there was even more stress at Tuesday's elimination.

"It went as well as it could have gone," Team Blake's Terry McDermott said on Monday of his performances of "I Want to Know What Love Is" and Rod Stewart's "Stay with Me." "There was a lot of pressure stripping a song down, but it worked to my advantage."

"I felt good," said Team Cee Lo's Trevin Hunte, who performed "Walking on Sunshine" and Jennifer Hudson's "And I Am Telling You (I'm Not Going)." "I'm confident. I feel like I've really grown. I'm definitely happy with my performance. I just want to see how America votes."

His chance came Tuesday when he and McDermott stood alongside competitors Nicholas David (Team Cee Lo), Cassadee Pope (Team Blake), Melanie Martinez and Amanda Brown (both Team Adam) to hear host Carson Daly reveal the voting results. Keep reading to find out ...

America saved McDermott, Hunte and Pope, but Martinez said goodbye to the competition for good. "I love all of you who have supported me," she said to her fans. "I'm just so grateful for you."

Brown also met the same fate, making David the final member of the top four.

The semi-final show airs Monday at 8:00 p.m. on NBC.

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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.


___


Online:


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


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Stock futures signal gains at open

PARIS (Reuters) - Stocks were indicated to open higher on Wednesday, with futures for the S&P 500 up 0.35 percent, Dow Jones up 0.43 percent and Nasdaq 100 up 0.41 percent at 4:55 a.m. EDT.


* European shares resumed a recent sharp rally on Wednesday after comments from China's new leader boosted global growth expectations.


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


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


* On the domestic front, investors awaited ADP's November employment report, due at 8:15 a.m. EDT. Economists in a Reuters survey expect 125,000 jobs were created versus 158,000 in October. Other data on Wednesday include factory orders and ISM's November non-manufacturing index, both due at 11 a.m. EDT.


* 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.


* Programmable chipmaker Altera Corp trimmed its fourth-quarter revenue expectation citing fewer orders for its older products, sending its shares down 2 percent after the bell.


* Aerovironment Inc posted a better-than-expected quarterly profit as its unmanned aircraft unit sold more fixed-price products, sending its shares up 9 percent after the bell.


* Pandora Media Inc


lowered its fourth-quarter guidance, 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 a quiet session on Tuesday as the back-and-forth wrangling over the "fiscal cliff" gave investors little reason to act.


* The Dow Jones industrial average <.dji> fell 13.82 points, or 0.11 percent, to 12,951.78 at the close. The Standard & Poor's 500 Index <.spx> dipped 2.41 points, or 0.17 percent, to 1,407.05. The Nasdaq Composite Index <.ixic> shed 5.51 points, or 0.18 percent, to close at 2,996.69.


(Reporting by Blaise Robinson; Editing by John Stonestreet)

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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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U.S. Warns Syria Against Using Chemical Weapons





WASHINGTON — President Obama warned Syria on Monday not to use chemical weapons against its own people, vowing to hold accountable anyone who did, even as American intelligence officials picked up signs that such arms might be deployed in the fighting there.




The White House said it had an “increased concern” that the government of President Bashar al-Assad was preparing to use such weapons, effectively confirming earlier reports of activity at chemical weapons sites. The administration said it would take action if they were used, suggesting even the possibility of military force.


“Today I want to make it absolutely clear to Assad and those under his command: The world is watching,” Mr. Obama said in a speech at the National Defense University in Washington. “The use of chemical weapons is and would be totally unacceptable. If you make the tragic mistake of using these weapons, there will be consequences and you will be held accountable.”


Neither the president nor his aides would specify how the United States would hold Syrians accountable, but the White House confirmed that contingency plans had been drawn for direct action. The president’s statement amplified similar warnings issued by Secretary of State Hillary Rodham Clinton earlier in the day in Prague, the capital of the Czech Republic, which represents the interests of the United States in Damascus now that the American Embassy there has been closed.


“This is a red line for the United States,” Mrs. Clinton said. “I am not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say, we are certainly planning to take action if that eventuality were to occur.”


The sharpening language came as NATO was preparing to buttress its member Turkey against a potential attack from Syria. A plan expected to be endorsed by the alliance’s foreign ministers during two-days of meetings that begin Tuesday in Brussels calls for deploying American, German and Dutch Patriot missile-defense batteries under the operational control of the NATO military command, Western officials said Monday.


Such a move would be the most direct action in the Syrian conflict by the alliance, which has remained cautious about intervention there. But for months, Turkey has expressed concerns about the potential of missile attacks from Syria as relations between the two countries have worsened, and last month Turkey asked for Patriot batteries.


As the United States and its allies tried to forestall the conflict from escalating, the Syrian Foreign Ministry said the government “would not use chemical weapons, if it had them, against its own people under any circumstances.” The statement was reported on Syrian state television and the Lebanese channel LBC.


Mr. Obama has called for Mr. Assad to step down but has shied away from taking direct action sought by Syrian rebels. With the election over, advisers are considering a more robust response, including possibly providing arms to the rebels and recognizing the opposition as the legitimate representative of the Syrian people.


But Mr. Obama avoided any mention of such actions in his speech. “We will work to support the legitimate aspirations of the Syrian people, engaging with the opposition, providing them with the humanitarian aid and working for a transition to a Syria that’s free of the Assad regime,” he said.


Jay Carney, the president’s press secretary, hinted at possible military action in response to any use of chemical weapons but declined to specify options. “We think it is important to prepare for all scenarios,” he said. “Contingency planning is the responsible thing to do.”


Mrs. Clinton flew from Prague to Brussels for the NATO meeting. A senior NATO official said the alliance would declare its support for Turkey’s request for help and welcome the intention of three allied nations to deploy Patriot missile batteries there. It would then be up to the United States, Germany and the Netherlands to decide how many batteries to deploy and for how long.


Surveys are being conducted of 10 potential sites, mainly in southeastern Turkey, but a senior American official traveling with Mrs. Clinton said it would probably take several weeks to deploy the batteries. Once deployed, they would be under the operational control of NATO’s top military commander, Adm. James. G. Stavridis.


The pending move has prompted speculation that it might be an indirect way of extending protection to forces opposing Mr. Assad in northern Syria by targeting Syrian warplanes operating there. But NATO and American officials were adamant that was not the purpose.


“There is no safe haven,” the American official with Mrs. Clinton said. “There is no de facto cross-border aspect to this.”


Instead, officials said the idea was to discourage Syria from threatening Turkey for supporting Syrian insurgents — and to discourage Turkey from feeling pressured to intervene to head off attacks against it. The Turkish military issued a statement Monday calling the deployment “a measure entirely aimed at defense.”


Peter Baker reported from Washington, and Michael R. Gordon from Brussels.



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PHOTO: See Molly Mesnick's Baby Belly

Jason and Molly Mesnick Pregnant: Baby Bump Photo
Noah Graham


Happy holidays! Celebrities gathered to celebrate the season Saturday, attending the Second Annual Santa’s Secret Workshop in West Hollywood, Calif. Presented by Bill Horn and Scout Masterson and held at the Andaz Hotel, the event benefitted L.A. Family Housing.


Among the revelers: Bachelor alums Jason and Molly Mesnick — whose first child together is due in March — attending their first event since announcing the happy news.


“I’m just about six months and feeling really good,” Molly tells PEOPLE.


“I’m at a perfect stage now so I’m trying to get as much done around the house as I possibly can while I have the energy.”

Also in attendance? Tori Spelling, Malin Akerman, Tiffani Thiessen, Ali LandryDavid Boreanaz, Marla Sokoloff, Kaitlin Olson and Rob McElhenney, Angela Bassett, Ian Ziering, Amanda Righetti, Marshall and Jamie Anne Allman, Kimberly Van Der Beek, Spencer Grammer and more.


Guests enjoyed manicures from Mom.me, cookie decorating with Jenny Cookies, photos with Santa from HP, create-a-card with Snapfish.com, and a craft bar from Jo-Ann Fabrics and Crafts.


Styled by Sybarite Designs, the event featured companies such as  SodaStream, Corolle, Stokke, Orbit Baby, Ergo Baby, Teddy Needs a Bath, Funktion, Numi Numi Design, Ju-Ju-Be, Innobaby and Joovy showcasing their latest products — be sure to enter this week’s giveaway for a chance to win them all!


Tori Spelling
Noah Graham


It was a family affair for Tori Spelling, who brought the whole gang for their first public event since 3-month-old Finn‘s birth in August.


Joining the actress, husband Dean McDermott and their newborn are Hattie, 13 months, Stella, 4, and Liam, 5½.


“I’m not going to lie. It’s a little crazy. It’s hard work,” Spelling tells PEOPLE.


“I think three was safe. Four tips you over the edge a little bit. Maybe it’s because they’re 10 months apart — but we’re so blessed. It keeps you on your toes.”


Malin Akerman
Noah Graham


With her first child on the way in April, Malin Akerman was all smiles at the event, posing with her growing belly.


“I’m feeling great,” the actress tells PEOPLE. “I’m closing in on five months now so it’s getting more and more exciting as time goes by.”


Tiffani Thiessen
Noah Graham


White Collar star Tiffani Thiessen gave 2-year-old daughter Harper Renn a leg up at the event.


On the Landry-Monteverde family’s list? Meeting Santa! PEOPLE.com blogger Ali Landry held 13-month-old son Marcelo Alejandro while husband Alejandro Monteverde snuggled in behind 5-year-old daughter Estela Ines.


Ali Landry
Noah Graham


Amanda Righetti
Tiffany Rose/WireImage


Ravishing redhead Amanda Righetti showed off her growing belly at the event — The Mentalist star is due this winter with her first child.


David Boreanaz
Noah Graham


No Bones about it – David Boreanaz‘s children look like him! The actor and wife Jaime Bergman brought kids Jaden, 10, and Bella, 3, to meet Santa.


Always Sunny in Philadelphia stars Kaitlin Olson and Rob McElhenney brought their elder son Axel, 2, to the event, but little Leo, 7 months, sat this one out.


Kaitlin Olson
Tiffany Rose/WireImage


Angela Bassett
Noah Graham


Meeting Santa was twice as nice for Angela Bassett and Courtney B. Vance, who brought along their 6-year-old twins Bronwyn Golden and Slater Josiah (peace out, dude).


Kimberly Van Der Beek
Tiffany Rose/WireImage


Who cares about photos — it’s time for a snack! PEOPLE.com blogger Kimberly Van Der Beek gives 2-year-old daughter Olivia (plus her doll!) a lift.


Picture perfect! Ian Ziering gets daughter Mia, 19 months, in the frame while enjoying the craft table. The actor and wife Erin expect their second child in May.


Ian Ziering
Meagan Reidinger


Marla Sokoloff
Meagan Reidinger


With a baby doll in tow, PEOPLE.com blogger Marla Sokoloff and her little lady, 9-month-old Elliotte, check out the event.


Spencer Grammer arrived with her main men — husband James Hesketh and their son, 13-month-old Emmett.


Spencer Grammer
Tiffany Rose/WireImage


Marshall and Jamie Ann Allman
Tiffany Rose/WireImage


The event was a baby bump debut for Marshall and Jamie Anne Allman as well — the True Blood and Killing stars just announced that they’re expanding their family — by two. Twins are on the way this spring!


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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.


___


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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Stock futures signal slightly higher open

LONDON (Reuters) - Stock futures pointed to a slightly higher open on Wall Street on Tuesday, with futures for the Standard & Poor's 500, the Dow Jones and the Nasdaq 100 all up 0.1 percent.


* The White House dismissed a "fiscal cliff" proposal from congressional Republicans on Monday that included tax reforms and spending cuts, saying it did not meet President Barack Obama's pledge to raise taxes on the wealthiest Americans.


* ICSC/Goldman Sachs release chain store sales for the week ended December 1 at 7:45 a.m. EDT. In the previous week, sales rose 3.3 percent.


* U.S. agribusiness giant Archer Daniels Midland Co tightened its grip on GrainCorp Ltd , hiking its bid to $2.9 billion and buying more shares, but may need to offer more to win over Australia's last major independent grains handler.


* Cerberus Capital Management LP is in talks to join Virtu Financial LLC's bid for U.S. brokerage Knight Capital Group Inc , the Wall Street Journal reported, citing people familiar with the discussions.


* Redbook releases its Retail Sales Index of department and chain store sales for December at 8:55 a.m. EDT. In the prior period, sales rose 0.8 percent.


* Qualcomm Inc will invest as much as $120 million in Sharp Corp , a cash injection likely to make it the struggling Japanese TV maker's biggest shareholder, and to boost Sharp's efforts to remain viable.


* At 9:45 a.m. EDT, the Institute for Supply Management-New York releases the November index of regional business activity.


* Chevron Corp's most costly individual project is about to get even more expensive. The U.S. energy company is expected to reveal this week a highly anticipated mark-up on the price tag for the Gorgon liquefied natural gas (LNG) export complex on a remote island off Western Australia.


* Shares in auto parts retailer Pep Boys-Manny Moe and Jack were down 8 percent after the bell on Monday following the release of its results.


* Autozone , the largest U.S. auto parts retail chain, posts quarterly results.


* European Union finance ministers will try to finalize plans to put the European Central Bank in charge of supervising all euro zone banks on Tuesday, but divisions over how ECB oversight will work threaten to undermine one of Europe's boldest reforms.


* European stocks edged higher in morning trade, helped by defensive stocks including leading pharmaceuticals Sanofi and Roche . <.eu/>


* At 4:44 a.m. EDT, the FTSEurofirst 300 <.fteu3> was up 0.3 percent, led by aerospace group EADS as hopes grew its shareholders were close to an agreement to overhaul its shareholder structure.


* U.S. stocks struggled on Monday to extend the previous week's gains, dropping as disappointing U.S. factory numbers dampened optimism about China's economic growth.


* The Dow Jones industrial average <.dji> fell 59.98 points, or 0.46 percent, to 12,965.60 at the close. The Standard & Poor's 500 Index <.spx> declined 6.72 points, or 0.47 percent, to 1,409.46. The Nasdaq Composite Index <.ixic> dropped 8.04 points, or 0.27 percent, to end at 3,002.20.


(Reporting by Atul Prakash; Editing by Susan Fenton)



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