Voters in Egypt Cast Ballots on Draft Constitution


Lynsey Addario for The New York Times


A polling site in Cairo on Saturday. Lines were long as a referendum on an Islamist-backed charter got off to an orderly start. More Photos »







CAIRO — Egyptians voted peacefully and in large numbers on Saturday in a referendum on an Islamist-backed draft constitution, hoping that the results would end three weeks of violence, division and distrust between the Islamists and their opponents over the ground rules of Egypt’s promised democracy.




By midmorning, long lines had formed outside polling stations around the country. Military officers were on hand to ensure security. Despite a new outbreak of fighting over the charter in Alexandria the day before and opposition warnings of chaos, the streets of the capital, Cairo, were free of major protests for the first time in weeks. By 9 p.m., lines were still long and election authorities had extended polling hours to 11.


The vote on a new constitution appeared to be yet another turning point for Egypt’s nearly two-year-old revolution. After weeks of violence and threats of a boycott, the strong turnout and orderly balloting suggested a turn toward stability, if not the liberalism some revolutionaries had hoped for.


Regardless of the outcome of the vote, to be completed next Saturday, widespread participation provided the political process with a degree of credibility, pulling Egypt back from the brink of civil discord. It remained to be seen whether the losing side would accept the result, and many Egyptians may have cast ballots mainly out of a desire to end the bedlam of the political transition, but the election was expected to bolster the government’s legitimacy and solidify the power of President Mohamed Morsi.


Neighbors continued to spar as they waited in line. Some said that Egypt’s new Islamist leaders had unfairly steamrollered the charter over the objections of other parties and the Coptic Christian Church, and that as a result the new charter failed to protect fundamental rights. Others blamed the Islamists’ opponents for refusing to negotiate in an effort to undermine democracy because they could not win at the ballot box. Many expressed discontent with political leaders on both sides of the fight.


“Neither group can accept its opposition,” said Ahmed Ibrahim, 40, a government clerk waiting to vote in a middle-class neighborhood in the Nasr City area of Cairo. Whatever the outcome, he said, “one group in their hearts will feel wronged, and the other group will gloat over their victory, and so the wounds will remain.”


The referendum on a new constitution once promised to be a day when Egyptians realized the visions of democracy, pluralism and national unity that defined the 18-day revolt against then-President Hosni Mubarak. But then came nearly two years of chaotic political transition in which Islamists, liberals, leftists, the military and the courts all jockeyed for power over an ever-shifting timetable.


The document that Egyptians voted on was a rushed revision of the old Mubarak charter, and many international experts faulted it as a missed opportunity, stuffed with broad statements about Egyptian identity but riddled with loopholes regarding the protection of rights.


Worse still, for many, was the polarizing endgame battle that the charter provoked. Leaders of the Muslim Brotherhood, the Islamist group allied with Mr. Morsi, said more than 35 of its offices around the country, including its Cairo headquarters, had been attacked and vandalized over the last three weeks. A night of street fighting between his Islamist supporters and their opponents killed at least 10.


Many voters waiting in line said they rejected the exploitation of the emotional issue of religion by both sides: the Islamists who sought to frame the debate over the constitution as an argument over Islamic law, and opponents who accused Mr. Morsi and his Islamist allies of laying the groundwork for a theocracy.


“It is not about these emotional issues,” said Talan Hassaballah, a businessman waiting to vote in the Nasr City neighborhood. “I am going to vote no, but not because I disagree with the Muslim Brotherhood or the president.”


Like most who said they would vote against the proposed constitution, he faulted its provisions on “social justice,” like guarantees of human rights, workers’ rights and social services. “They are vague,” he said.


Tensions with Egypt’s Christians, believed to make up about 10 percent of the population, were rubbed raw by the debate. Ultraconservative Islamist satellite networks often faulted angry Christians for provoking violence, and many Christians were shocked that the Islamist leaders of the constitutional assembly had pushed the draft through even after the official representatives of the Coptic Church had withdrawn in protests.


“The entire Christian community was offended,” Nagwa Albert, 56, said after she voted against the constitution. Speaking of the Islamist leaders’ statements to rally support for the draft, she said: “It feels like the beginning of a war.”


Mayy El Sheikh and Mai Ayyad contributed reporting.



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Huge Wave of Google App Updates Hits iOS, Android






Google just brought iPhone and Android phone users a holiday gift. Google Maps has returned to the iPhone, this time in the form of its own separate app, while Google Currents — the company’s Flipboard-style online magazine app for Android — received a substantial update as well.


Besides the two big updates, about a half-dozen other apps for Android and Google TV received bug fixes and new features, according to Android Police blogger Ryan Whitwam. Here’s a look at what to expect, and where the rough edges still lay.






Google Maps is back


It was technically never there to begin with; the iPhone simply had a “Maps” app included, which used Google Maps’ data. But a few months ago, Apple switched from using Google’s map data to its own, which caused no end of problems as Apple’s data was incorrect much more often. These problems were sometimes hilarious, but in at least one case they were dangerous, as several motorists had to be rescued after becoming stranded inside an Australian national park (where Apple’s maps said the town they were trying to get to was).


Google Maps has also received a thumbs-down from the Victoria police in Australia, but is regarded as more reliable overall. It’s a completely new app this time, and while it has at least one “Android-ism” according to tech expert John Gruber (an Ice Cream Sandwich-style menu button), it’s reported to work well and doesn’t show ads like the YouTube app does.


It does, however, keep asking you to log in to your Google account so that it can track your location data.


Google Currents has a new look and new features


The update to digital magazine app Google Currents brings its features more in line with Google Reader, the tech giant’s online newsreader app which can monitor almost any website for updates. Like Google Reader, Currents can now “star” stories to put them in a separate list, can show which stories you’ve already read, and has a widget to put on your Android home screen. Other added features include new ways to scan editions and stories, and filter out sections you aren’t interested in.


Bugfixes and updates for other Google apps


Google Earth and Google Drive received miscellaneous bugfixes “and other improvements,” while Google Offers (a Groupon competitor) now features a “Greatly improved purchase experience.”


The Google Search app received a slew of additions to its Siri-like Google Now feature, including new cards to help while you are out and about and new voice actions (like asking it to tell you what song is playing nearby). The Field Trip augmented reality app now uses less battery life, and lets you “save cards” and favorite places you visit, as well as report incorrect data to Google. Finally, Google TV Search and PrimeTime for Google TV both received performance and stability updates.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.


Linux/Open Source News Headlines – Yahoo! News


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Connecticut Shooting: Hero Teacher Died Saving Students









12/15/2012 at 06:30 PM EST



Out of the chaos and horror emerged an incredible act of selflessness and bravery by one teacher, who spent her final moments trying to protect her young students from harm.

Victoria Soto, 27, a first-grade teacher at Sandy Hook Elementary School in Newtown, Conn., ushered her students into a closet and in so doing placed her body between them and the assailant.

"She was found huddled over her children, her students, doing instinctively what she knew was the right thing," her cousin Jim Wiltsie tells ABC News. "I'm just proud that Vicki had the instincts to protect her kids from harm,” he continued. “It brings peace to know that Vicki was doing what she loved, protecting the children and in our eyes she's a hero.”

Soto was among the six adults – all women – killed in Friday morning's massacre that also took the lives of 20 children – 12 girls and eight boys. The gunman, identified as 20-year-old Adam Lanza, took his own life. His mother was also found killed in a different location.

"It doesn't surprise me at all she would do this," Sabeena Ali, the parent of a girl who was in Soto's class two years ago, tells PEOPLE.

Ali calls Soto a "vibrant woman who loved the kids and would be with the kids and spend time with them and sit on the floor with them. "

Two years later, her daughter – now a third-grader – still idolized Soto.

"Every day there was some new Miss Soto story we had to listen to: 'This is what she did, this is how wonderful she was today,'" says Ali. "She would bring in snacks for the kids and do special days.

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Fewer health care options for illegal immigrants


ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.


The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.


To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.


But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.


When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.


And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.


In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."


The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.


Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.


Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.


A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.


California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.


The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.


And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.


If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.


Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.


The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.


"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."


Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.


There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.


Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.


For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.


"They always attended to me," she said, "even though it's slow."


___


Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .


Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .


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Syrian Rebel Seeks Prisoner Exchange to Free Hostages




Lebanese Captives in Syria Speak Out:
C.J. Chivers, a correspondent for The New York Times, spoke with two Lebanese men held captive in Syria for seven months. Syrian rebels accuse them and seven others of being members of Hezbollah.







BAB AL-SALAM, Syria — When Syrian rebels stopped two buses of Lebanese travelers in the spring and took 11 passengers hostage, they set off a cascade of fallout: riots at the Beirut airport, retaliation kidnappings against Syrians in Lebanon and a deepening of the sectarian character of the war.




Since that day in May, as civil war has raged and opposition fighters have gained momentum in their bid to oust President Bashar al-Assad, the rebels have continued to detain most of their prisoners, having released two as a good-will gesture. The rest, nine men who the captors insist are members of Hezbollah — which the prisoners deny — will be released only as part of a prisoner exchange, the rebel commander holding the group said.


The commander, Amar al-Dadikhi of the North Storm brigade, which has been holding the prisoners at an undisclosed location in Syria’s northern countryside, said in interviews that he would free the hostages if the Syrian government released two prominent opposition figures and if Lebanon freed all Syrian activists in government custody.


The men’s prospects for freedom, he said, are “in the Syrian government’s hands, and the Lebanese government’s hands.”


Their detention began after they were removed at gunpoint from buses driving though Syria while returning from a Shiite religious pilgrimage to Iran. The case has remained stubbornly unresolved, even as it has raised questions about the character and criminality of some of the rebels whom the West has hesitatingly backed.


The taking of the hostages also sullied the reputation of the Free Syrian Army, the loosely organized antigovernment fighting groups. Without any public evidence to support the claim that the hostages are members of Hezbollah, the case has exposed the limits of the Free Syrian Army’s influence over rebels who fly its banner.


The Free Syrian Army’s leadership appears not to have been able to persuade Mr. Dadikhi to release the men, even as it seeks international recognition and tangible military aid, two desires undermined by the hostage case.


Mr. Dadikhi, a large and scarred man who is alternately praised by many opposition activists for battlefield bravery and whispered about as an accomplished smuggler who once maintained extensive ties to the government, claims to have 1,300 armed fighters and a network of cross-border contacts. His control of the border crossing that leads to Aleppo, Syria’s largest city, makes him a power broker by default.


Col. Abdul Jabbar al-Okaidi, a former Syrian military officer and one of the Free Syrian Army commanders in the Aleppo region, declined to comment on the case beyond saying that he was aware of the demands of Mr. Dadikhi, whom he called Abu Ibrahim.


“Abu Ibrahim has his requests,” he said. “If they are taken care of, he will free the Lebanese.”


Relatives of the hostages, reached by telephone in Beirut, expressed deep anger upon hearing Mr. Dadikhi’s demands. “Let them capture someone from the regime. Why abduct Lebanese? What do we have to do with the revolution?” said the wife of one of the hostages. “They are liars; they won’t release them. It is just blackmail.”


Mr. Dadikhi allowed two journalists from The New York Times to meet with two of the hostages — Ali Abbas, 30, and Ali Tormos, 54 — for about 30 minutes on Thursday afternoon. The men appeared to be in good health, and they said they and the other hostages had not been harmed.


They expressed weariness and asked that Lebanon and Syria meet their captors’ demands. “It has been a long time, and we want to go home,” Mr. Abbas said.


The interview was held in a former government office at the border crossing from Syria to Kilis, Turkey. Mr. Dadikhi agreed to leave the room while the hostages spoke. The meeting remained all but scripted.


Hwaida Saad contributed reporting from Beirut, Lebanon.



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Bethenny Frankel & Jason Hoppy Step Out with Daughter Bryn Amid Relationship Rumors






Buzz








12/14/2012 at 06:00 PM EST







Bethenny Frankel and husband Jason Hoppy with daughter Bryn


Jae Donnelly/INF


Are Bethenny Frankel and husband Jason Hoppy experiencing another rough patch?

Amidst rumors that the reality stars' two-year marriage is in trouble, the couple were photographed while out with daughter Bryn, 2½, Friday in New York City.

And though Hoppy is smiling and holding tight to his daughter, Frankel, 42, didn't exactly seem upbeat. It makes some sense: sources tell PEOPLE that the couple's relationship has been strained in recent months, echoing what Frankel herself told PEOPLE earlier this year.

"We've both been scared," she said this past summer. "The second year of marriage was not easy. We hit bottom."

Still, Frankel was hopeful that the couple would be able to withstand the hardships.

"I don't want to run," she said. "Jason's a great father and an amazing partner. Without him, life as I know it couldn't happen."

Read More..

Fewer health care options for illegal immigrants


ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.


The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.


To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.


But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.


When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.


And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.


In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."


The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.


Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.


Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.


A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.


California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.


The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.


And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.


If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.


Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.


The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.


"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."


Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.


There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.


Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.


For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.


"They always attended to me," she said, "even though it's slow."


___


Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .


Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .


Read More..

Wall Street succumbs to Apple's fall, "cliff" uncertainty

NEW YORK (Reuters) - Stocks fell on Friday as another slide in Apple took a toll and investors unloaded some shares because of the uncertainty surrounding the "fiscal cliff" negotiations.


For the Nasdaq, this marked the second losing week in a row. All three major U.S. stock indexes ended the week slightly lower.


Apple's stock slid 3.8 percent to $509.79 after UBS cut its price target on the stock to $700 from $780. The stock of the most valuable U.S. company has been hit hard in the last three months. On Friday, Apple's stock fell after a tepid reception for the iPhone 5 in China.


The S&P Information Technology Index <.gspt> lost 1 percent as Apple fell and Jabil Circuit Inc shed 5.5 percent to $17.51 after UBS cut its price target.


The possibility of a fiscal cliff deal not taking place until early 2013 is rising. The back-and-forth negotiations over the fiscal cliff in Washington have kept markets on hold in what would already be a quiet period for stocks.


"We're faced with uncertainty ... and that's going to continue now into January. It basically puts everybody on hold and (you) just have the markets kind of thrash around," said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


President Barack Obama and U.S. House of Representatives Speaker John Boehner held a "frank" meeting on Thursday at the White House to discuss how to avoid the tax hikes and spending cuts set to kick in early in 2013.


The Dow Jones industrial average <.dji> slipped 35.71 points, or 0.27 percent, to 13,135.01 at the close. The Standard & Poor's 500 Index <.spx> fell 5.87 points, or 0.41 percent, to 1,413.58. The Nasdaq Composite Index <.ixic> lost 20.83 points, or 0.70 percent, to close at 2,971.33.


For the week, the Dow slipped 0.2 percent, while the S&P 500 fell 0.3 percent and the Nasdaq declined 0.2 percent.


Among other Nasdaq decliners, shares of chipmaker Qualcomm slid 4.7 percent to $59.83. A semiconductor index <.sox> dropped 0.7 percent.


American Express Co shares fell 1.9 percent to $56.65 and ranked as the heaviest weight on the Dow.


Investors are concerned that going over the cliff could tip the economy back into recession. While a deal is expected to ultimately be reached, a drawn-out debate - like the one over 2011's debt ceiling - can erode confidence.


Best Buy Co Inc slid 14.7 percent to $12.05 after the electronics retailer agreed to extend the deadline for the company's founder to make a bid. Shares jumped as much as 19 percent on Thursday after initial reports of a bid this week from founder Richard Schulze.


Among the day's economic data, consumer prices fell in November for the first time in six months, indicating U.S. inflation pressures were muted. A separate report showed manufacturing grew at its swiftest pace in eight months in December.


Data out of China was encouraging, as Chinese manufacturing grew at its fastest pace in 14 months in December. The news was deemed as helpful for U.S. materials companies, including U.S. Steel , which rose 6.8 percent to $23.85. An S&P material sector index <.gspm> rose 0.9 percent.


Volume was roughly 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.52 billion.


Decliners outnumbered advancers on the NYSE by a ratio of about 8 to 7. On the Nasdaq, decliners barely held an edge over advancers, with 1,241 stocks falling and 1,196 shares rising.


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal)



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Top Russian Envoy for Syria and NATO Leader Say Assad Losing Control


Manu Brabo/Associated Press


Rebel fighters attacked Syrian government forces on Thursday in the village of Tal Sheer.







MOSCOW — Russia’s top Middle East diplomat and the leader of NATO offered dark and strikingly similar assessments of the embattled Syrian president’s future on Thursday, asserting that he was losing control of the country after a nearly two-year conflict that has taken 40,000 lives and has threatened to destabilize the Middle East.




The bleak appraisals — particularly from Russia, a steadfast strategic Syrian ally — amounted to a new level of pressure on the Syrian president, Bashar al-Assad, who has been resorting to increasingly desperate military measures, including the use of Scud ballistic missiles, to contain an armed insurgency that has encroached on the capital, Damascus.


The Russian diplomat, Deputy Foreign Minister Mikhail Bogdanov, acknowledged that Mr. Assad’s forces could be defeated by rebels, whom the Syrian leader has repeatedly dismissed as ragtag foreign-backed terrorists with no popular support.


“Unfortunately, it is impossible to exclude a victory of the Syrian opposition,” said Mr. Bogdanov — the clearest indication to date that Russia believed that Mr. Assad could lose.


Mr. Bogdanov’s remarks, reported by Russia’s Interfax news service, came as the secretary general of NATO, Anders Fogh Rasmussen, told reporters in Brussels that Mr. Assad’s use of ballistic missiles, which Western officials monitoring the Syrian conflict reported on Wednesday — and which Syria has denied — reflected his “utter disregard” for Syrian lives. Mr. Rasmussen also predicted the demise of Mr. Assad’s government.


“I think the regime in Damascus is approaching collapse,” he told reporters after a meeting with the Dutch prime minister at NATO headquarters. “I think now it is only a question of time.”


While NATO member states have made similar predictions before, the assertion by Mr. Rasmussen, the leader of the Western military alliance, reinforced a growing consensus that Mr. Assad’s options for remaining in power had been all but exhausted — a view now apparently shared by Russia.


The State Department welcomed Mr. Bogdanov’s comments that Mr. Assad was losing ground but indicated there was still a wide gulf between the United States and Russia about how to deal with the crisis in Syria.


Victoria Nuland, the State Department’s spokeswoman, said that the United States would like to “commend the Russian government for finally waking up to the reality and acknowledging that the regime’s days are numbered.”


But she said that Russia should take steps to facilitate Mr. Assad’s departure from power by  withdrawing “residual support for the Assad regime.” While Russia has said it would not sign new military contracts with the Syrian government, it has not promised to sever existing military contracts. Nor has Russia cut off all economic support to the Syrian government, Ms. Nuland said.


Throughout the Syria crisis, as it has grown from peaceful protests in March 2011 to engulf the country in armed conflict, Russia has acted as Syria’s principal international shield, protecting Mr. Assad diplomatically from Western and Arab attempts to oust him and holding out the possibility of his staying in power during a transition.


Only in recent days has Russia’s view seemed to shift, while Mr. Assad’s foes, grouped in a newly minted and still uncertain coalition, have garnered ever broader international support as the legitimate representatives of the Syrian people.


“We must look squarely at the facts, and the trend now suggests that the regime and the government in Syria are losing more and more control and more and more territory,” Mr. Bogdanov said in remarks to Russia’s Public Chamber, a Kremlin advisory group, according to Interfax.


Russia, he said, was preparing to evacuate its citizens — a complex task, since for decades, Russian women have married Syrian men sent to study in Russia and returned to Syria with them to raise families.


It was the first time an official at Mr. Bogdanov’s level had announced plans for an evacuation, which sent a message to the Syrian government that Russia no longer held out hope that the government could prevail. He said Russia had a plan to withdraw its personnel from its embassy in the Syrian capital, Damascus, but that was s not yet necessary. Russia’s press attaché in Damascus confirmed this, telling Interfax that there was “no sharp deterioration” in conditions there.


Ellen Barry reported from Moscow, and Rick Gladstone from New York. Reporting was contributed by Alan Cowell from London, Anne Barnard from Beirut, Lebanon, and Michael R. Gordon from Washington.



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iPhone 5 hits China as Apple market share slips






SHANGHAI (Reuters) – The China release of its iPhone 5 on Friday should win Apple Inc some respite from a recent slide in its share of what is likely already the world’s biggest smartphone market, but its longer-term hopes may depend on new technology being tested by China‘s top telecoms carrier.


Cupertino, California-based Apple has been in talks about a tie-up with China Mobile for four years. A deal with China’s biggest carrier is seen as crucial to improve Apple’s distribution in a market of 290 million users – which is forecast to double this year.






China is Apple’s second-largest and fastest-growing market – it brings in around 15 percent of total revenue – but the company’s failure to strike a deal with China Mobile means it is missing out on a large number of phone users. As the China pie grows, Apple’s sales increase, but without China Mobile, it’s losing ground at a faster rate compared to other brands.


“In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in China. However, in relative terms, I don’t believe it will move the needle enough in market share,” said Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant.


China Mobile and Apple initially said they were separated only by a technical issue – as the Chinese carrier runs a different 3G network from most of the world – but that has evolved into a broader and more complex issue of revenue-sharing.


“China Mobile and Apple still have to solve many issues, such as the business model, articles of cooperation and revenue division, but I believe we will reach an agreement eventually,” China Mobile CEO Li Yue was reported by Chinese media as saying in Guangzhou last week.


Apple China declined to comment. China Mobile said it had no update to the Apple discussions.


STRONG PRE-ORDERS


Apple’s ranking in China’s smartphone market slipped to sixth in July-September, according to research firm IDC, [ID:nL4N09G1QK] but investors, primed to look to China product launches for an uptick in Apple’s quarterly sales, have good headline numbers to digest – more than 300,000 iPhones pre-ordered on one carrier alone. But it’s the lack of a deal with the No.1 carrier that prevents those numbers being stronger.


The iPhone is currently sold through Apple’s seven stores, resellers and through China Unicom and China Telecom – which together have fewer than half the mobile subscribers of bigger rival China Mobile.


“Apple’s market share declined because of the transition between the iPhone 4S and 5. Their market share will recover (with the iPhone 5), but if you don’t have China Mobile, the significant market share gains will be very difficult,” said Huang Leping, an analyst at Nomura in Hong Kong.


TD-LTE: STILL DISTANT


Cutting a deal with a Chinese state-owned carrier may be less optimal than the deals Apple is used to in other markets, and analysts note that China Mobile wouldn’t necessarily open the flood gates for Apple.


Ovum’s Putcha believes Apple and China Mobile will eventually strike a deal – though this would be for an iPhone running on China Mobile’s next-generation network rather than its current 3G network.


Of China Mobile’s 704 million subscribers, only 79 million are on its 3G network, and Apple has been reluctant to sign up to China Mobile’s under-utilized, homegrown TD-SCDMA technology. “Apple likely doesn’t see the return-on-investment in extending themselves for TD-SCDMA,” Putcha said.


China Mobile is currently trialling its next-generation network, TD-LTE, which could be of more interest to Apple, but full-scale commercial use – and an iPhone tie-up – could still be years away.


ANDROID THREAT


Meanwhile, rivals are circling, eating away at Apple’s smartphone market share. Samsung Electronics, Lenovo Group and little-known Chinese brand Coolpad held the top three slots in the third quarter, according to IDC.


All three have relationships with China Mobile and offer smartphone models at different price points. Apple competes exclusively at the high-end, and even there, rivals are rolling out models with China Mobile. Last week, Nokia said it planned to release its latest Lumia smartphone with China’s top carrier, which is also expected to launch Research in Motion’s new Blackberry 10, analysts predict.


“The threat will still come more from the Android camp where they have many vendors already working with China Mobile and offering high-end phones,” said TZ Wong, a Singapore-based IDC analyst.


While these smartphones don’t generate the buzz of a new iPhone, Chinese buyers are not known for their brand loyalty, and this could siphon away users considering an Apple upgrade.


“I’ve used a Blackberry, Android and iOS and, personally, I want to try the Windows 8,” said Andy Huang, a 37-year-old fund manager, who owns most iPad models, an iPhone 4 and a 4S. “I think the Windows 8 is very innovative.”


With a China Mobile deal looking some way off, Apple could always boost market share by offering cheaper models – the basic iPhone 5 will cost 5288 yuan ($ 850) without a contract – though this appears an unlikely route for a high-end brand.


“If they want to expand market share, probably the only way to do it here dramatically would be to put out a lower cost phone,” said Michael Clendenin, managing director at RedTech Advisors. “It’s really uncertain if they’d decide to go that route … Apple’s a mystery in that regard.”


($ 1 = 6.2518 Chinese yuan)


(Additional reporting by the Shanghai Newsroom and Jane Lee; Editing by Kazunori Takada and Ian Geoghegan)


Tech News Headlines – Yahoo! News


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