Tuesday, January 31, 2012

Stock futures slip as Germany, Greece wrangle over budget (Reuters)

NEW YORK (Reuters) ? Stock index futures fell on Monday as concerns grew about the state of Europe's finances as Greece and Germany sparred over budget measures for Athens.

Bank stocks led the way lower after a report that Germany was pushing for Greece to give up control over its budget policy to European institutions as part of discussions over a second bailout package.

The issues in Greece added to uncertainty ahead of a Monday summit where European Union leaders will sign off on a permanent rescue fund for the euro zone. The leaders are expected to agree on a balanced budget rule in national legislation.

While sentiment has improved over the euro zone lately, with the S&P 500 up 4.7 percent this month, many investors still view the region with caution as setbacks in solving its sovereign debt issues could hamper international economic growth and erode domestic bank profits.

"The inability of Greece and Germany to agree on a budget deal increases the likelihood that Greece will have to leave the euro zone, an event that would be a shock to the system," said Oliver Pursche, president at Gary Goldberg Financial Services in Suffern, New York.

"In addition, while we could still rally on good news, the recent GDP data was disappointing and earnings have been mixed."

U.S.-listed shares of Barclays Plc (BCS.N) fell 3.2 percent to $13.64, and Deutsche Bank (DB.N) sank 4.8 percent to $42.47. European shares were down 0.7 percent while an index of European banks (.SX7P) lost 2.6 percent.

Standard & Poor's late Friday issued negative ratings on three brokerage firms, including Jefferies Group Inc (JEF.N), citing the impact of a prolonged crisis in Europe.

S&P 500 futures fell 8.7 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 79 points and Nasdaq 100 futures sank 16 points.

Issues in Europe have taken a backseat to the focus on corporate earnings in recent weeks. So far a majority of companies have topped analyst consensus expectations, though by a lower rate than previous quarters.

Gannett Co (GCI.N) and McKesson Corp (MCK.N) are scheduled to report Monday, with Amazon.com Inc (AMZN.O) Exxon Mobil Corp (XOM.N) and Pfizer Inc (PFE.N) on tap for later this week.

Swiss engineering group ABB (ABBN.VX) agreed to buy U.S. electrical components maker Thomas & Betts Corp (TNB.N) for $3.9 billion in cash, sending shares of the company up 22 percent to $70.87 in premarket trading.

Bank of America Corp (BAC.N) is shaking up the leadership of its investment bank as it looks to find its footing in a difficult market environment. The stock fell 2 percent in premarket trading.

Economic indicators on tap for Monday include December personal income and consumption data, as well as a measure of U.S. Midwest manufacturing. Income is seen rising 0.4 percent after a 0.1 percent rise in November, and consumption is forecast to rise 0.1 percent from November.

U.S. stocks trimmed losses to end little changed on Friday, as investors saw dips in the market as an opportunity to buy into what has been a strong first month of 2012.

(Editing by Padraic Cassidy)

Source: http://us.rd.yahoo.com/dailynews/rss/stocks/*http%3A//news.yahoo.com/s/nm/20120130/bs_nm/us_markets_stocks

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Spanish economy shrinks in Q4, nearing recession (AP)

MADRID ? Spain's economy contracted by 0.3 percent during the fourth quarter, according to official figures released Wednesday, edging the country closer to a new recession as it deals with huge levels of unemployment and painful austerity cuts.

The figure announced by the National Statistics Institute broke a run of seven quarters without economic contraction. The institute said GDP fell 0.3 percent during the quarter compared with a year earlier. For all of 2011, it increased 0.7 percent.

The economy is expected to slide further through March, placing Spain back in its second recession in less than three years. A technical recession is defined as two consecutive quarters of contraction.

The country, where unemployment has hit a eurozone-high of 22.9 percent, is struggling to avoid slumping further into a debt crisis that has seen Greece, Ireland and Portugal needing financial bailouts.

Spain began in 2010 to emerge from a near two-year recession triggered by the collapse of a real estate bubble that had fueled growth for nearly a decade and helped make it Europe's top job creator up to 2008.

But the recovery has gone into reverse. The Bank of Spain says the debt crisis has sapped business confidence and dried up bank credits, leading to a huge drop in domestic demand, only partially offset by strong exports.

The bank predicts the economy will contract 1.5 percent this year while the International Monetary Fund says Spain will stay in recession until the end of 2013.

The figures are putting the new right-leaning Popular Party government, which took office last month, under increased pressures to usher in reforms.

On Friday, it introduced a budget-discipline law that will allow the government to impose penalties on debt-laden regional governments if they run deficits after 2020. It has also promised labor and financial sector overhauls in the next few weeks.

Spain's deficit for 2011 is expected to be 8 percent of national income. Prime Minister Mariano Rajoy's government says it is still committed to reducing that to 4.4 percent in 2012 and down to the EU limit of 3 percent the following year, although with a recession looming, that pledge may prove impossible to keep.

Since taking office Dec. 23, the government has also approved austerity measures and tax increases it hopes will bring in some euro15 billion ($19.7 billion) to help ease the swollen deficit.

Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http%3A//news.yahoo.com/s/ap/20120130/ap_on_bi_ge/eu_spain_financial_crisis

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Monday, January 30, 2012

Clashes erupt in Cairo during anti-army protest (Reuters)

CAIRO (Reuters) ? Hundreds of Egyptian protesters demanding an immediate end to military rule clashed on Sunday with rivals in civilian clothes outside central Cairo's state media building, the same place where 25 people were killed in a demonstration in October.

"Down with military rule," protesters chanted. The sound of gunshots rang through the air but it was unclear who was firing.

"Tell me council, who chose you? It's Mubarak's gang that appointed you," the crowd chanted, referring to the army council which has ruled Egypt since President Hosni Mubarak was ousted on February 11.

Dozens of protesters clashed with a group of people protesters described as "thugs" brought out to attack them, hurling stones at each other. There was no sign of police or troops intervening or securing the media building.

"We were protesting here peacefully, and all of a sudden a group of around 50 thugs came from side streets surrounding the building and attacked us with stones and glass bottles, and we responded by throwing stones back at them. They tore down our tents," said Mohamed Abdo, 45, an elevator worker.

State radio said residents in a poor area next to Maspero, the site of the demonstration, had challenged the protesters because they were disrupting shops and businesses in the area.

Protesters often say such "thugs," usually youths in plain clothes and sometimes members of the police force, have been hired by the authorities to disrupt demonstrations.

The October violence at Maspero in which 25 people died erupted when troops tried to break up a protest sparked by what Christians said was an attack on a church in southern Egypt.

Egyptians have become increasingly frustrated by military rule, though many still see the army as a vital force for stability after months of political turmoil.

"The country cannot continue like this. Things are getting worse. They have to transfer power now. The country cannot stay like this any longer," said Waleed Kamal, 25.

He was not among the protesters, but lives nearby. "If we get civilian rule, the country will get back on its feet, the economic wheel will turn," he added.

Egyptians on January 25 marked the first anniversary of mass demonstrations against Mubarak in Tahrir Square, near the Maspero site of Sunday's protest.

(Writing by Edmund Blair; editing by Tim Pearce)

Source: http://us.rd.yahoo.com/dailynews/rss/africa/*http%3A//news.yahoo.com/s/nm/20120129/wl_nm/us_egypt_protest

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Sunday, January 29, 2012

Japan, Russia to boost ties despite islands row (AP)

TOKYO ? The foreign ministers of Japan and Russia agreed Saturday to strengthen economic and security cooperation but made no progress on resolving a long-standing territorial dispute that has kept the two nations from concluding a peace treaty.

Foreign Minister Koichiro Gemba and visiting Russian Foreign Minister Sergey Lavrov said the two countries need to address the row over islands off northeastern Japan in a calm manner. Gemba said resolving the dispute and forging a peace treaty officially ending their hostilities in World War II is "more necessary than ever."

Both men sought to downplay the dispute and focus on ways the two nations could expand their ties.

"As the security situation in the Asia-Pacific undergoes major changes, the Japan-Russia relationship has taken on new importance," Gemba said at a joint news conference following what he called a "fruitful" two-hour meeting.

"We reaffirmed that we want to strengthen our cooperation in security, defense and economic matters, particularly energy modernization," he added.

Lavrov welcomed the increased trade between the two nations, which grew last year to 2.45 trillion yen ($31 billion).

"We want our international cooperation to expand," Lavrov said.

The two sides signed an agreement to simplify visa procedures to boost visitors and business interaction, particularly from Japan to Russia.

Ties between Japan and Russia soured in late 2010 when Dmitry Medvedev became the first Russian president to visit the disputed islands, called the southern Kurils in Russia and the Northern Territories in Japan. They were seized by Soviet troops in the closing days of World War II, but Japan says they are part of its territory.

The islands are surrounded by rich fishing grounds and are believed to have oil, natural gas and mineral deposits.

"Resolving this problem and concluding a peace treaty is more necessary than ever," Gemba said. "But unfortunately ... our positions are different. We hope to resolve this through dialogue."

Lavrov said tackling the matter would have to wait until a new leader is chosen in Russia's presidential election on March 4.

"Both countries need to address the row over the islands in a calm manner without getting emotional or critical," he said.

Lavrov and Gemba were to discuss North Korea over a working lunch in the second part of their meeting. Japan and Russia are among six nations involved in long-stalled talks offering aid for North Korean nuclear disarmament.

Asked about North Korea, Lavrov said Moscow has information that the talks will "possibly resume." He did not elaborate.

North Korea, which is undergoing a leadership transition, appears to be pushing for a resumption of the talks, but the U.S. and its allies want it to first show it is serious about previous disarmament commitments. South Korea and China are the other countries involved in the talks.

Lavrov also said Russia would support Japan's efforts to press North Korea on its abduction of Japanese citizens.

After years of denials, North Korea said in 2002 that it had kidnapped 13 Japanese to train its spies. It returned five abductees but claimed the rest had died. Japan disputes that and says as many as 12 Japanese may still be captive in the North.

Source: http://us.rd.yahoo.com/dailynews/rss/asia/*http%3A//news.yahoo.com/s/ap/20120128/ap_on_re_as/as_japan_russia

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Obama administration reveals new ATF gun probe rules (Reuters)

WASHINGTON (Reuters) ? The Obama administration on Friday revealed new reforms undertaken to improve how it conducts undercover gun trafficking investigations in the wake of a botched operation in which scores of weapons disappeared.

The reforms require additional oversight of undercover operations, including those that involve more than 50 firearms, and, in most cases, ends the practice of paying gun dealers to serve as confidential informants.

Additionally, a new review committee has been established to monitor sensitive undercover cases or those that would have a "significant regional or national impact," according to the Justice Department.

The details were revealed just before Attorney General Eric Holder testifies on Thursday before members of the House of Representatives' Oversight and Government Reform Committee about the bungled operation known as "Fast and Furious."

The operation, run out of the Phoenix offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and U.S. Attorney's office was meant to follow the guns from the initial buyers along the U.S. border to violent drug cartel leaders in Mexico.

However ATF agents did not track the weapons after they were transferred from the initial buyer to others who smuggled them across the border. As many as 2,000 guns may have been sold under the operation.

Two AK-47 style weapons from that program were found in Arizona 18 miles from the border where a U.S. Border Patrol agent, Brian Terry, was shot and killed during a December 2010 shootout with illegal immigrants.

A similar, smaller program was run during the Bush administration dubbed "Wide Receiver."

"We are undertaking key enhancements to existing department policies and procedures to ensure that mistakes like those that occurred in 'Wide Receiver' and 'Fast and Furious' are not repeated," Deputy Attorney General James Cole said in a letter to Congress.

Republicans have been demanding to know who in the Obama administration knew about the "Fast and Furious" operation and when. Holder and other senior ATF and Justice Department officials said they did not learn about it until early 2011.

(Reporting By Jeremy Pelofsky)

Source: http://us.rd.yahoo.com/dailynews/rss/mexico/*http%3A//news.yahoo.com/s/nm/20120128/pl_nm/us_usa_mexico_guns

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Saturday, January 28, 2012

Larry Bock: Tinker and Change the World

Tinkering -- that hands-on, garage-based tradition which sparked inventions ranging from the airplane and electric light bulb to the Apple computer -- is making a comeback among average Americans, promising to change our lives for the better on several fronts.

Known by such monikers as DIY (Do It Yourself) and the Maker Movement, its resurrection, fueled by the current economic downturn and the falling cost of high-tech tools and materials, stands not only to boost innovation and change how science is taught in the classroom, but could herald a new industrial revolution, suggest the Economist, the Wall Street Journal and other luminaries.

The potential power of this movement is indeed thought-provoking. It rests on DIYers (who range from young students to everyday adults) believing that the average person has the ability to understand and apply technology in ways like never before, enabling ordinary individuals to build, even invent, meaningful creations of their own that they are passionate about -- from robots and sophisticated LED (light emitting diode) systems for movie film production to energy-smart conveniences for the home.

Through robust support networks that they've developed nationwide, DIYers delight in joining with like-minded friends, mentors and peers (either online or in-person) to tinker, create, hack and re-use materials, while learning to use such tools as computer-controlled table saws, 3-D printers, welding equipment and laser cutters to produce prototypes of their creations.

For me, as founder and chief organizer of the U.S.A. Science & Engineering Festival (the nation's largest celebration of science and engineering), the merging of DIY with technology represents a vibrant breath of fresh air across America, particularly what it means for inspiring the next generation of innovators. And I am not alone: Educators are realizing that hands-on experiences represented by such activities as tinkering and building may be one of the most powerful keys to improving STEM (science, technology, engineering and mathematics education) in this country. That's because students learn best by doing, especially when done in an engaging environment with peers and mentors.

Not surprisingly, engineering schools across the country, for example, report that undergrad students are showing an enthusiasm for hands-on work in DIY technology activities that hasn't been seen in years.

DIY also cannot help but to have a positive impact on the human spirit itself, says Naomi Lamoreaux, an economic historian at the University of California, Los Angeles. "The really dynamic times in our history are times when you have lots of ordinary people who think they have a chance to make a difference," she opines.

Yes, the chance to make a difference is indeed a powerful motivator, especially for young students. That is why the U.S.A. Science & Engineering Festival hosted by Lockheed Martin this April is devoting a significant portion of the event to exciting, hands-on DIY encounters -- all designed to inspire budding inventors and entrepreneurs with ideas, tools and resources to help them make their dreams a reality. From robotic technology to amazing desktop manufacturing technology that makes prototype development easy and cost-effective, future innovators will find it all during the Festival's finale Expo (as well as in the Robot Fest and DIY Expo pavilion) in Washington, D.C. on April 28-29.

The Festival is also a fantastic place for technical experts of all kinds to learn about the amazing advances that have been made in technology to help them make product prototypes find designs online for parts and components, and meet an array of experts to help them bring their product ideas to life.

Participants and activities such as the following will make the Festival an unforgettable one-stop experience in DIY:

--Organizations like MakerBot Industries, Fab Lab DC and Fab@Home by Cornell University and Dassault Syst?mes Americas will demonstrate how to develop product prototypes via digital fabrication and 3D printers, while Sparkfun Electronics will show how to develop new product ideas more easily and inexpensively through electronics and microcontroller kits. The Festival will also feature an array of robotic technology ranging from military, manufacturing and surgical robots to more entertaining robots like R2DC's Star Wars droids and other exhibits that allow attendees to build their own robots.

--At the DIY Expo, budding entrepreneurs will be able to network with members of various "hackerspace" groups, such as the Baltimore Node, Unallocated Space and HacDC, who work collaboratively to network, socialize and develop technical solutions and new innovative products in their spare time, simply because they love to tinker with new ideas, create something from nothing, and solve problems!

--In addition, the Festival also features a Book Fair that includes some of the leading authors and experts in the DIY world, including William Gurstelle, author of The Practical Pyromaniac. Gurstelle, a professional engineer, has been researching and building model catapults, ballistic devices and flamethrowers for more than 30 years. Dustyn Roberts, author of Making Things Move: DIY Mechanisms for Inventors, Hobbyists and Artists, will also appear at the Festival. Roberts, also an engineer, started her career at Honeybee Robotics working on a project for NASA's Mars Science Laboratory mission.

The late Steve Jobs (who was perhaps the ultimate modern-day DIYer), was right when he said individuals who invent, build and make things have the power to change the
world -- or at least a part of it.

?

Follow Larry Bock on Twitter: www.twitter.com/usasciencefest

Source: http://www.huffingtonpost.com/larry-bock/hands-on-learning_b_1232091.html

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France, Karzai want faster NATO Afghanistan exit

French President Nicolas Sarkozy, right, welcomes Afghan President Hamid Karzai, left, at the Elysee Palace, in Paris, Friday Jan. 27, 2012. (AP Photo/Thibault Camus)

French President Nicolas Sarkozy, right, welcomes Afghan President Hamid Karzai, left, at the Elysee Palace, in Paris, Friday Jan. 27, 2012. (AP Photo/Thibault Camus)

French President Nicolas Sarkozy, right, welcomes Afghan President Hamid Karzai, left, at the Elysee Palace, in Paris, Friday Jan. 27, 2012. (AP Photo/Thibault Camus)

French President Nicolas Sarkozy, right, waits prior to welcoming Afghan President Hamid Karzai, unseen, at the Elysee Palace, in Paris, Friday Jan. 27, 2012. (AP Photo/Thibault Camus)

(AP) ? France and Afghanistan will ask NATO to hand over all combat missions to the Afghan military in 2013, a year earlier than planned, President Nicolas Sarkozy said Friday.

It signaled a sharp break by France, the fourth-largest troop contributor in Afghanistan, from its previous plans to adhere to the U.S. goal of withdrawing combat forces by the end of 2014. The proposal was made a week after four unarmed French troops were killed by an Afghan soldier described as a Taliban infiltrator.

Sarkozy, who made the announcement during a visit by Afghan President Hamid Karzai, said France has informed President Barack Obama of the plan, and will present it at a Feb. 2-3 meeting of NATO defense ministers in Brussels. Sarkozy said he was planning a phone call with Obama on the matter Saturday.

"We have decided in a common accord with President Karzai to ask NATO to consider a total handing of NATO combat missions to the Afghan army over the course of 2013," he said.

The French leader also announced his country's troops will withdraw by the end of 2013 and restart training missions Saturday. Last week, Sarkozy suspended France's training missions and joint military patrols with Afghan forces following the shooting death of the four French troops on Jan. 20.

A sense of widespread fatigue has been growing among European contributors to the 10-year allied intervention in Afghanistan. The latest idea floated by Sarkozy would accelerate a gradual drawdown of NATO troops that Obama has planned to see through until the end of 2014.

France's announcement could step up pressure in other European governments like Britain, Italy and Germany, which also have important roles in Afghanistan ? even if the U.S. has the lion's share by far.

In Washington, U.S. State Department spokeswoman Victoria Nuland said the timetable announced by France was worked through by both the Afghans and NATO as part of efforts to transfer security authority to Afghanistan.

"We, obviously, want to continue to work together to ensure that this is implemented in a way that is consistent with the efforts of all of NATO to give increasing authority to the Afghans, and that it is smooth," she said.

Nuland said the U.S. was pleased the move was not "precipitous."

"So you know, this was a national decision of France. It was done in a managed way. We will all work with it. As the president has said, with regard to our own presence, we are working on 2014," she said.

"The alliance as a whole is working on 2014. But we are also going to work within this French decision," she added.

NATO reacted tersely to Sarkozy's statement.

"We have taken note of the statement," NATO spokeswoman Oana Lungescu said in Brussels.

Sarkozy also said France will speed up its own withdrawal timetable, pulling out 1,000 of its current 3,600 soldiers by year-end ? the previous target was 600 ? and bring all combat forces out by the end of 2013.

Karzai had said previously that the goal was to have Afghan security forces in charge of security across the entire nation by the end of 2014. Afghan forces started taking the lead for security in certain areas of the country last year and the plan has been to add more areas, as Afghan police and soldiers were deemed ready to take over from foreign forces.

According to drawdown plans already announced by the U.S. and more than a dozen other nations, the foreign military footprint in Afghanistan will shrink by an estimated 40,000 troops at the close of this year. Washington is pulling out the most ? 33,000 by the end of the year. That's one-third of 101,000 U.S. troops that were in Afghanistan in June, the peak of the U.S. military presence in the war, Pentagon figures show.

With Karzai at his side, Sarkozy also said France would hand over authority in the strategic province of Kapisa east of Kabul, where nearly all French troops are deployed, to the Afghans in March.

"A new phase is starting with the Afghans in which civilian and development projects will progressively take the handoff from our military presence," Sarkozy said, adding Afghan security "is the business of Afghans."

Karzai, who praised the role of France and other NATO allies, didn't object when Sarkozy said the 2013 timetable was sought by the two countries.

But the Afghan leader appeared to suggest that it was a high-end target.

"Yes, Mr. President, it is right that Afghanistan has to provide for its own security and for the protection of its own people, and for the provision of law and order," Karzai told Sarkozy.

"We hope to finish the transition ? to complete this transition of authority to the Afghan forces, to the Afghan government, by the end of 2013 at the earliest ? or by the latest as has been agreed upon ? by the end of 2014," Karzai said.

The NATO-led international force in Afghanistan has been steadily handing over responsibility for security to the government's army and police ever since the alliance's last summit in Lisbon in 2010. There, NATO leaders decided to move the Afghans into the lead role in fighting the Taliban by 2014 and end the coalition's combat role.

Afghan forces are already now in the lead if over half of the country's population in terms of security, and the transition process remains on track.

In London, the Ministry of Defense and the Foreign Office had no immediate response to the French proposal. Britain plans to bring its 9,500 troops home by the end of 2014.

Prime Minister David Cameron is due to hold talks with Karzai at his country residence near London on Saturday.

Sarkozy's government has been under political pressure to withdraw French troops before the United States' pegged pullout in 2014. Polls show most French want an early withdrawal.

Francois Heisbourg, an analyst at the Paris-based Foundation for Strategic Research think tank, told The Associated Press this week that a quick exit would also pose logistical problems for French forces, who hope to bring home much of the heavy equipment deployed in Afghanistan.

Francois Hollande, the Socialist nominee for presidential elections this spring, repeated on French TV on Thursday his hope to bring all French forces home this year.

Polls show Hollande leading the conservative Sarkozy, who has not formally announced whether he will run in the two-round election in April and May. Most political observers believe he will.

Nick Witney, a senior policy fellow at the Paris-based European Council on Foreign Relations, said public support of the war in Europe started sliding fast after the coalition agreed to end the combat mission in 2014.

"It has become more and more difficult to justify every single casualty, since it's now clear that these are wasted lives," said Witney, a former head of the European Defense Agency.

"Most European policymakers realize that on a purely cost-benefit assessment, we would all leave Afghanistan tomorrow," Witney said, adding that "it's difficult for any single government to break with its allies without being accused of lack of solidarity."

___

Slobodan Lekic in Brussels, Deb Riechmann in Kabul, Jill Lawless in London and Matthew Lee in Washington contributed to this report.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2012-01-27-EU-France-Afghanistan/id-461c10f31215468aa3a9d26b7b12b65d

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Friday, January 27, 2012

Obama Discusses Details From His Energy Agenda

The Obama administration released more details Thursday about the energy plan he previewed at the State of the Union this week. He announced an oil-and-gas-lease sale on nearly 38 million acres in the Gulf of Mexico ? and proposals for new incentives to increase the use of natural gas in heavy trucks and buses.

Source: http://www.npr.org/2012/01/26/145923396/obama-discusses-details-from-his-energy-agenda?ft=1&f=1007

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Some Wash. wheat farmers back labels for GM foods (AP)

YAKIMA, Wash. ? Some Washington state wheat farmers have thrown their support behind legislation requiring labeling of genetically modified foods, giving food safety advocates fresh hope that lawmakers also will get behind the bill.

They haven't been receptive to the idea in the past, and lawmakers at the national level and in more than a dozen states have rejected similar proposals in the past year.

But in an unusual pairing, a handful of Washington wheat farmers have joined so-called "foodies" to back the latest bill, fearing exports will be hurt if and when genetically modified wheat gains federal approval. The U.S. exports half of its wheat, and in Washington, the only bigger export is Boeing Co.'s airplanes.

Biotechnology giants Monsanto and Syngenta have announced plans to begin testing genetically modified wheat, though the product is likely a decade or more from being offered commercially.

Resistance from the European Union and Japan led Monsanto to abandon similar efforts in 2004. Pacific Rim countries haven't historically been friendly to genetically modified products, and they remain the biggest buyers of Washington wheat.

"If we do nothing, we will be destroyed," said Tom Stahl, a fourth-generation farmer in the small town of Waterville, Wash., about 100 miles east of Seattle. "We will lose our markets and that will be devastating for the eastern Washington economy."

Monsanto and Syngenta representatives didn't immediately return messages left after a Thursday hearing on the bill.

Dozens of people testified at a packed Senate committee hearing in Olympia, Wash., where the committee chairman raised concerns about passing a bill that may conflict with federal law.

About 50 countries require genetically modified foods to be labeled, but the U.S. isn't one of them. Only Alaska has enacted legislation at the state level, requiring the labeling of genetically engineered fish and shellfish products.

Supporters said that bill was needed to protect one of Alaska's most lucrative and important industries, though genetically engineered fish are not yet on the market.

The Washington bill would require genetically engineered foods or foods containing genetically engineered ingredients to be labeled with the ingredients listed effective July 1, 2014. The rule would apply to all foods sold in the state, although those in which GM ingredients make up less than half of 1 percent would be exempt.

The federal government's position is that approved genetically modified foods are not substantially different than conventional products. Critics say requiring GM foods to be labeled will increase packaging costs and state spending on enforcement.

More than 90 percent of corn and soybeans in this country are grown from genetically modified seed, said Karen Batra, spokeswoman for the Washington, D.C.-based Biotechnology Industry Association, a trade group that advocates for biotechnology members, including Monsanto and Syngenta.

"Ultimately, you're not providing any meaningful information to consumers, because you end up labeling the majority of products," she said by telephone. "Consumers already have a choice: If they don't want biotech foods, they can buy organic."

Batra declined to speculate on whether opponents would challenge the bill in court if it passed.

Wheat has lagged behind other crops in terms of innovation, and biotechnology offers tools to deal with problems like drought and increase sustainable production, said Jane DeMarchi, the National Association of Wheat Grower's director of government affairs for research and technology.

DeMarchi said in a telephone interview that her group has been talking to people who buy wheat, including those overseas, to determine what they want from U.S. farmers and educate them about genetically modified wheat.

She said she recognized the farmers' concerns but stressed that each one has a choice of what to grow and how to label it.

"We support voluntary labeling of food products, provided it's consistent with U.S. law and trade agreements and that it's truthful and not misleading," she said.

The problem with voluntary labeling is that it puts the burden on companies whose products aren't a problem, said Trudy Bialic, director of public affairs for PCC Natural Markets, the largest consumer owned and operated grocery retailer in the U.S. It supports the bill as a means of educating consumers, preserving the identity of non-GM foods and protecting export sales.

"In my view, a lot of federal law has started at the state level," Bialic said. "This has to start at a state level, because the federal government won't take it up."

Source: http://us.rd.yahoo.com/dailynews/rss/science/*http%3A//news.yahoo.com/s/ap/20120126/ap_on_re_us/us_food_and_farm_gmo_labeling

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Thursday, January 26, 2012

US women top Mexico 4-0, on to do-or-die semis

Heather O'Reilly

By JOSEPH WHITE

updated 2:32 a.m. ET Jan. 25, 2012

VANCOUVER, British Columbia - The U.S. women's soccer team was still on the field, having dispatched rival Mexico, when Abby Wambach gathered her teammates for a little speech.

The message: "We haven't done anything yet."

The Americans avenged one of their most shocking losses Tuesday night, and did so emphatically. A pair of early goals put to rest any notion of another upset by the neighbor to the south, and Carli Lloyd scored her first international hat trick in a 4-0 victory that clinched first place in the Americans' group and put them a major step closer to the London Olympics.

But hang on. Next up is the one game in this tournament that matters most, the London-or-bust semifinal against Costa Rica on Friday. The winner gets one of the two available berths for the Olympics; the loser stays home.

"The next game is the game that we need to be prepared for, and that matters the most," goalkeeper Hope Solo said. "She made sure that we didn't celebrate too much today."

Wambach and her teammates remember all too well the sting from a 2-1 defeat against Mexico in Cancun in a World Cup qualifier 14 months ago, the only time in 28 tries the Mexicans have beaten the Americans. That loss forced the U.S. into a backdoor playoff just to qualify for the World Cup ? and served as a wakeup call that the top-ranked team in the world can't take important games for granted any more.

"This was the exact same position that we were in, in Mexico in 2010," Wambach said. "We haven't done anything. We still have one game left. That's what I said ? stay focused.

"It's simple. I think everybody knows it. I think everybody understands it. But I also think that in hindsight we wish we had said something like that prior to that game. Because we didn't say those things, I didn't want to leave any stone unturned. And that's kind of what that speech was about."

The Americans will be heavily favored in the semis. Costa Rica is ranked No. 41 in the world and has never beaten the U.S., having been outscored 34-0 in seven meetings. Had the Americans lost to Mexico on Tuesday, they would have faced a much tougher semifinal against host Canada.

Instead, it will be Mexico vs. Canada in the other semi that will produce the tournament's second Olympic berth.

The lessons from Cancun have been prevalent during this entire CONCACAF tournament. The Americans routed their first two opponents ? Dominican Republic and Guatemala ? by scores of 14-0 and 13-0, the most lopsided results in U.S. team history.

Keeping with that theme, coach Pia Sundhage wanted a strong start against the Mexicans, and she got one. The Americans controlled the run of play early, and it paid off when Lloyd headed in the rebound in the seventh minute after Rachel Buehler clanged a shot off the post following a corner kick.

A minute later, the lead was doubled. Amy Rodriguez's cross was deflected by a defender and then by goalkeeper Cecilia Santiago straight to Heather O'Reilly for an easy goal.

Lloyd also netted in the 57th and 86th as the Americans avoided a repeat of a Mexican upset ? and wrapped up group play with three wins by a combined score of 31-0.

"It was redemption for us," Lloyd said. "We came out strong and knew we had to get it done."

The Mexicans, buoyed by a vocal and slightly pro-Mexico crowd of 7,599 at BC Place, worked hard on the counterattack for a goal, but the American back four of Buehler, Becky Sauerbrunn, Christie Rampone and Amy LePeilbet cleared nearly every serious threat, leaving goalkeeper Hope Solo without much work to earn her third shutout of the tournament.

That was probably for the best. Solo revealed after the game that she has "a little quad pull" that nearly caused her to ask for a sub. She hopes she'll be fine for the semifinals.

The defensive performance was especially heartening for the Americans given the absence of Ali Krieger, who tore two ligaments in her right knee against the Dominican Republic and likely won't be back in time for the Olympics. As a tribute to Krieger, each American player had the word "liebe" ? German for "love" ? written on her arm. Krieger, who has played five seasons in the German league for FFC Frankfurt, has a tattoo with the word on her left arm.

"Ali will be a part of this team ? whether she's here or not," Wambach said.

___

Joseph White can be reached at http://twitter.com/JGWhiteAP

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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Source: http://nbcsports.msnbc.com/id/46126538/ns/sports-olympic_sports/

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Europe poses global recession threat: IMF (Reuters)

WASHINGTON (Reuters) ? Europe's debt crisis could tip the world economy into recession and a bigger firewall is urgently needed to keep the damage from spreading, the International Monetary Fund said on Tuesday.

The IMF chopped its estimate for 2012 global growth to 3.3 percent from 4 percent just three months ago and warned it could drop as low as 1.3 percent if Europe lets the crisis fester for much longer. For 2013, it predicted growth of 3.9 percent.

"The epicenter of the danger is Europe but the rest of the world is increasingly affected," IMF chief economist Olivier Blanchard said at a news conference. "There is an even greater danger, namely that the European crisis intensifies, and in this case the world could be plunged into another recession."

"With the right set of measures, the worst can definitively be avoided and the recovery can be put back on track," he said. "These measures can be taken, need to be taken, and need to be taken urgently."

The IMF called for swift action from the 17-nation euro zone, which it said would likely see its economy contract this year by 0.5 percent.

"The most immediate policy challenge is to restore confidence and put an end to the crisis in the euro area by supporting growth while sustaining adjustment, containing deleveraging, and providing more liquidity and monetary accommodation," it said in its latest World Economic Outlook report.

Blanchard and other top IMF officials emphasized repeatedly that Europe needs to bolster its rescue funds to win market confidence and lower yields on sovereign bonds so that countries like Italy and Spain can borrow at affordable rates.

Talks between private bond holders and the Greek government have foundered, raising the risk Athens could face a messy default that would touch off a deeper crisis. IMF Managing Director Christine Lagarde warned on Monday that a failure to erect a larger wall against financial contagion could lead to a "1930s moment."

Jose Vinals, director of the IMF's Monetary and Capital Markets Department, said it was important to both increase the size of the Europe's current 500 billion euro rescue fund and its flexibility.

In addition to helping countries it should be able to take direct stakes in troubled banks "to break the link between national sovereign risk and national banks," he said.

SUPPORT FOR GROWTH NEEDED

The IMF maintained its 1.8 percent growth forecast for the United States in 2012, but said a pick up in spending could be offset if the turmoil in Europe grew.

It also cut its projection for Japan to 1.7 percent from September's 2.3 percent and urged Tokyo to be more ambitious in reducing its debt and implementing a consumer tax.

Economic activity in advanced economies would expand by 1.5 percent on average in 2012 and 2013, too sluggish to make a major dent in high unemployment rates, the Fund said.

Emerging nations are also feeling the pinch.

The IMF projected growth in emerging economies to slow to 5.4 percent this year, down from 6.2 percent last year and well below the 6.1 percent forecast in September, and it called on them to focus policies on lifting growth.

It cut China's growth figure to 8.2 percent for 2012, down from 9.0 percent. Chinese growth should rebound to 8.8 percent in 2013, it added.

For fast-growing emerging Asia as a whole, the IMF reduced its growth outlook for 2012 to 7.3 percent from 8 percent.

Elsewhere, the IMF said growth in the Middle East and North Africa should accelerate, driven mainly by a recovery in Libya after a nine-month civil war ended with the capture and killing of leader Muammar Gaddafi in October.

Global oil prices are likely to ease slightly in 2012 despite slowing world growth, the IMF said, adding that its baseline oil price projection was broadly unchanged since September when it forecast $100 a barrel.

Non-oil commodity prices are set to fall by 14 percent this year, the IMF said, adding that risks to prices are to the downside for most commodities.

In Africa, the effects of the global slowdown is likely to be limited to South Africa, with the region as a whole expanding by around 5.5 percent this year, second fastest after Asia.

The largest impact of the slowdown would likely be felt in central and eastern Europe, which has strong trade links with the euro zone economies, the IMF said. It revised down its estimate for the region to 1.1 percent in 2012 from a previous forecast of 2.7 percent. Growth should edged up to 2.4 percent next year, the IMF added.

(Additional reporting by Glenn Somerville and Lucia Mutikani; Editing by Neil Stempleman, Tim Ahmann and Andrew Hay)

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/nm/20120124/bs_nm/us_imf

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Wednesday, January 25, 2012

Russia hopes Iran nuclear talks will resume soon (Reuters)

SOCHI, Russia (Reuters) ? Russia believes there is a good chance that talks between global powers and Iran on Tehran's nuclear program could resume soon despite a planned EU oil embargo and other sources of tension, Foreign Minister Sergei Lavrov said Monday.

Lavrov emphasized Moscow's opposition to Western sanctions against Iran, saying they reduced the chances of ending the confrontation over Iran's nuclear program, which the United States and Europe fear is aimed at developing weapons.

"Despite these aggravating factors, we still have a strong hope to resume talks in the nearest future," he said of long-dormant talks between Iran and six global powers -- Russia, China, the United States, Britain, France and Germany.

He said Russia would try to deter both Iran and the West from making counterproductive moves that would further jeopardize the chances for talks, but did not explain how it would do so.

The European Union banned imports of oil from Iran Monday and imposed a number of other economic sanctions, joining the United States in a new round of measures aimed at pushing Iran into reining in its nuclear activities.

Veto-wielding U.N. Security Council member Russia has emphasised it opposes any further sanctions beyond the four rounds of measures it approved in the council in recent years.

Lavrov said last week that additional sanctions were aimed at triggering popular discontent in Iran by "strangling" the economy and the civilian population.

Russia has proposed a plan under which existing sanctions would be eased in return for steps by Tehran to instill trust and wants the proposal to be discussed if the talks, stalled for a year, resume.

Iran said last week that it was in touch with the six powers to reopen talks soon, but the European Union denied it, and Western nations said Iran must show it is serious about demonstrating that its nuclear activities are purely peaceful.

(Reporting by Alexei Anishchuk; writing by Steve Gutterman; editing by Thomas Grove and Tim Pearce)

Source: http://us.rd.yahoo.com/dailynews/rss/iran/*http%3A//news.yahoo.com/s/nm/20120123/wl_nm/us_iran_russia

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Poll: NJ residents like having their gas pumped (AP)

TRENTON, N.J. ? New Jersey residents aren't primed about pumping their own gasoline.

A new poll shows nearly two-thirds support the state rule requiring that only station attendants can pump gas in the Garden State.

Forty-eight states allow self-serve gas pumps. Only New Jersey and Oregon do not.

The Fairleigh Dickinson University PublicMind poll released Monday finds 63 percent of respondents like New Jersey's current law, while 23 percent oppose it and 14 percent aren't sure.

The poll finds Democrats and women are more strongly in favor of having their gas pumped by someone else than are Republicans and men.

The telephone poll of 800 registered New Jersey voters was taken between Jan. 2-8 and has a margin of error of plus or minus 3.5 percentage points.

___

On the Web: http://publicmind.fdu.edu

Source: http://us.rd.yahoo.com/dailynews/rss/energy/*http%3A//news.yahoo.com/s/ap/20120123/ap_on_bi_ge/us_gas_pumping_poll_new_jersey

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Tuesday, January 24, 2012

Monday, January 23, 2012

Seal, Heidi Klum announce separation (AP)

NEW YORK ? Seal and Heidi Klum have announced that their storybook marriage is coming to the end of the runway.

In a statement Sunday night, the power couple announced their separation after rumors swirled over the weekend that a divorce was imminent.

"While we have enjoyed seven very loving, loyal and happy years of marriage, after much soul searching we have decided to separate," the joint statement read. "We have had the deepest respect for one another throughout our relationship and continue to love each other very much, but we have grown apart. This is an amicable process and protecting the well-being of our children remains our top priority, especially during this time of transition. We thank our family, friends, and fans for their kind words of support. And for our children's sake, we appreciate you respecting our privacy."

The couple married in 2005 and has four children together, including the supermodel's daughter from a previous relationship.

They were one of Hollywood's most high-profile couples, and seemed to have the relationship everyone should envy. They two starred together in the music video "Secret," they renewed their wedding vows each anniversary, boasted of their love in the media, and threw Halloween bashes together where they dressed in outrageous outfits, most recently last year in New York City, where the two engaged in their typical public display of affection for the cameras.

In an interview with The Associated Press in 2007, the "Kiss from A Rose" singer described his wife, who has a tattoo of his name on her arm, as his best friend.

"It is really important that we have that understanding because apart from anything else it is really healthy," he said of the "Project Runway" host. "People often talk about the most important thing in a relationship. They say it is really important that you are turned on by your partner and you love each other, which is all really true.I often think that the most important thing or certainly up there with love is respect."

TMZ first reported on Saturday that the two planned to divorce this week.

His announcement comes as he releases his new album, "Soul 2," on Tuesday, which has songs like "Love T.K.O," "Let's Stay Together" and "Love Don't Live Here Anymore."

___

AP Entertainment Writer Alicia Quarles contributed to this report.

Source: http://us.rd.yahoo.com/dailynews/rss/topstories/*http%3A//news.yahoo.com/s/ap/20120123/ap_on_en_tv/us_people_seal_heidi_klum

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Patriots favored by Vegas books to win Super Bowl

By OSKAR GARCIA

updated 10:49 p.m. ET Jan. 22, 2012

LAS VEGAS - Las Vegas casinos say the New England Patriots are favorites to win the Super Bowl thanks to their national following, a decade of winning and the playoff success of quarterback Tom Brady and coach Bill Belichick.

Race and Sports Director Mike Colbert says the Patriots opened as three-point favorites over New York in odds posted Sunday night after the Giants beat San Francisco 20-17 in overtime in the NFC championship game.

New England beat the Baltimore Ravens 23-20 for the AFC title.

Executive Race and Sports Director Jay Kornegay of the Las Vegas Hotel & Casino says an injury to Patriots tight end Rob Gronkowski is a factor that could swing the line up to one point.

Colbert says the 2008 Super Bowl rematch could break wagering records. The Patriots were 12-point favorites four years ago, but the Giants earned a 17-14 win.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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More news
Crucial changes in Super rematch

Rosenthal: Tom Coughlin has gone from the hot seat to the Super Bowl. Tom Brady and Bill Belichick have a chance to make history. This all seems familiar, doesn?t it?

Patriots-Giants again, 4 years later

??Talk about a super sequel. Four years after New York stunned previously undefeated New England in the Arizona desert, the Patriots and Giants are going at it again at the Super Bowl ? this time in Indianapolis.

Source: http://nbcsports.msnbc.com/id/46095595/

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Sunday, January 22, 2012

US Internet piracy case brings New Zealand arrests

This undated image obtained by The Associated Press shows the homepage of the website Megaupload.com. Federal prosecutors in Virginia have shut down one of the world's largest file-sharing sites, Megaupload.com, and charged its founder and others with violating piracy laws. (AP Photo)

This undated image obtained by The Associated Press shows the homepage of the website Megaupload.com. Federal prosecutors in Virginia have shut down one of the world's largest file-sharing sites, Megaupload.com, and charged its founder and others with violating piracy laws. (AP Photo)

(AP) ? With 150 million registered users, about 50 million hits daily and endorsements from music superstars, Megaupload.com was among the world's biggest file-sharing sites. Big enough, according to a U.S. indictment, that it earned founder Kim Dotcom $42 million last year alone.

The movie industry howled that the site was making money off pirated material. Though the company is based in Hong Kong and Dotcom was living in New Zealand, some of the alleged pirated content was hosted on leased servers in Virginia, and that was enough for U.S. prosecutors to act.

The site was shut down Thursday, and Dotcom and three Megaupload employees were arrested in New Zealand on U.S. accusations that they facilitated millions of illegal downloads of films, music and other content, costing copyright holders at least $500 million in lost revenue.

New Zealand Police also seized guns, artwork, more than $8 million in cash and luxury cars valued at nearly $5 million after serving 10 search warrants at several businesses and homes around the city of Auckland.

News of the shutdown seemed to bring retaliation from hackers who claimed credit for attacking the Justice Department's website. Federal officials confirmed it was down for hours Thursday evening and that the disruption was being "treated as a malicious act."

A loose affiliation of hackers known as "Anonymous" claimed credit for the attack. Also hacked was the site for the Motion Picture Association of America.

On Friday, New Zealand's Fairfax Media reported that the four defendants stood together in an Auckland courtroom in the first step of extradition proceedings that could last a year or more.

Dotcom's lawyer raised objections to a media request to take photographs and video, but then Dotcom spoke out from the dock, saying he didn't mind photos or video "because we have nothing to hide." The judge granted the media access, and ruled that the four would remain in custody until a second hearing Monday.

Dotcom, Megaupload's former CEO and current chief innovation officer, is a resident of Hong Kong and New Zealand and a dual citizen of Finland and Germany who had his name legally changed. The 37-year-old was previously known as Kim Schmitz and Kim Tim Jim Vestor.

Two other German citizens and one Dutch citizen also were arrested and three other defendants ? another German, a Slovakian and an Estonian ? remain at large.

The Electronic Frontier Foundation, which defends free speech and digital rights online, said in a statement that the arrests set "a terrifying precedent. If the United States can seize a Dutch citizen in New Zealand over a copyright claim, what is next?"

The indictment was unsealed one day after websites including Wikipedia and Craigslist shut down in protest of two congressional proposals intended to make it easier for authorities to go after sites with pirated material, especially those with overseas headquarters and servers.

Before Megaupload was taken down, the company posted a statement saying allegations that it facilitated massive breaches of copyright laws were "grotesquely overblown."

"The fact is that the vast majority of Mega's Internet traffic is legitimate, and we are here to stay. If the content industry would like to take advantage of our popularity, we are happy to enter into a dialogue. We have some good ideas. Please get in touch," the statement said.

Several sister sites were also shut down, including one dedicated to sharing pornography files.

The $8 million in cash seized had been invested in various New Zealand financial institutions, and has been placed in a trust pending the outcome of the cases.

Police spokesman Grant Ogilvie said the seized cars include a Rolls Royce Phantom Drophead Coupe worth more than $400,000. Two short-barreled shotguns and a number of valuable artworks were also confiscated, he added.

According to the indictment, Megaupload was estimated at one point to be the 13th most frequently visited website on the Internet. Current estimates by companies that monitor Web traffic place it in the top 100.

Megaupload is considered a "cyberlocker," in which users can upload and transfer files that are too large to send by email. Such sites can have perfectly legitimate uses. But the Motion Picture Association of America, which has campaigned for a crackdown on piracy, estimated that the vast majority of content being shared on Megaupload was in violation of copyright laws.

The website allowed users to download some content for free, but made money by charging subscriptions to people who wanted access to faster download speeds or extra content. The website also sold advertising.

Megaupload was unique not only because of its massive size and the volume of downloaded content, but also because it had high-profile support from celebrities, musicians and other content producers who are most often the victims of copyright infringement and piracy. Before the website was taken down, it contained endorsements from Kim Kardashian, Alicia Keys and Kanye West, among others.

The company listed Swizz Beatz, a musician who married Keys in 2010, as its CEO. He was not named in the indictment and declined to comment through a representative.

The five-count indictment, which alleges copyright infringement as well as conspiracy to commit money laundering and racketeering, described a site designed specifically to reward users who uploaded pirated content for sharing, and turned a blind eye to requests from copyright holders to remove copyright-protected files.

For instance, users received cash bonuses if they uploaded content popular enough to generate massive numbers of downloads, according to the indictment. Such content was almost always copyright protected, the indictment said.

The Justice Department said it was illegal for anyone to download pirated content, but their investigation focused on the leaders of the company, not end users who may have downloaded a few movies for personal viewing.

A lawyer who represented the company in a lawsuit last year declined to comment Thursday. Efforts to reach an attorney representing Dotcom were unsuccessful.

Although Megaupload is based in Hong Kong, the size of its operation in the southern Chinese city was unclear. The administrative contact listed in its domain registration, Bonnie Lam, did not respond immediately for a request for comment sent to a fax number and email address listed.

The indictment was returned in the Eastern District of Virginia, which claimed jurisdiction in part because some of the alleged pirated materials were hosted on leased servers in Ashburn, Va. Prosecutors there have pursued multiple piracy investigations.

The Justice Department also was investigating the "significant increase in activity" that disrupted its website. It said in a statement that it was working to "investigate the origins of this activity, which is being treated as a malicious act until we can fully identify the root cause."

The site appeared to be working again late Thursday. A spokesman for the Motion Picture Association of America said in an emailed statement that the group's site also had been hacked, but it too appeared to be working later in the evening.

"The motion picture and television industry has always been a strong supporter of free speech," the spokesman said. "We strongly condemn any attempts to silence any groups or individuals."

____

Matthew Barakat reported from McLean, Va.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2012-01-20-Internet-Piracy-Indictment/id-a218a8bf7e6d431c8f0d2369d2d451d6

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NZ police raid file-sharing site founder's mansion (AP)

WELLINGTON, New Zealand ? New Zealand police raided several homes and businesses linked to the founder of Megaupload.com, a giant Internet file-sharing site shut down by U.S. authorities, on Friday and seized guns, millions of dollars, and nearly $5 million in luxury cars, officials said.

Police arrested founder Kim Dotcom and three Megaupload employees on U.S. accusations that they facilitated millions of illegal downloads of films, music and other content costing copyright holders at least $500 million in lost revenue. Extradition proceedings against them could last a year or more.

With 150 million registered users, about 50 million hits daily and endorsements from music superstars, Megaupload.com was among the world's biggest file-sharing sites. According to a U.S. indictment, the site, which was shut down Thursday, earned Dotcom $42 million in 2010 alone.

Although the company is based in Hong Kong and Dotcom lives in New Zealand, some of the alleged pirated content was hosted on leased servers in Virginia, and that was enough for U.S. prosecutors to act.

New Zealand police served 10 search warrants at several businesses and homes around the city of Auckland.

Police spokesman Grant Ogilvie said the seized cars include a Rolls Royce Phantom Drophead Coupe worth more than $400,000 as well as several Mercedes. Two short-barreled shotguns and a number of valuable artworks were also confiscated, he added.

He said police seized more than $8 million, money that was invested in various New Zealand financial institutions and which has now been placed in a trust pending the outcome of the cases.

New Zealand's Fairfax Media reported that the four defendants stood together in an Auckland courtroom in the first step of the extradition proceedings.

Dotcom's lawyer raised objections to a media request to take photographs and video, but then Dotcom spoke out from the dock, saying he didn't mind photos or video "because we have nothing to hide." The judge granted the media access, and ruled that the four would remain in custody until a second hearing Monday.

Dotcom, Megaupload's former CEO and current chief innovation officer, is a resident of Hong Kong and New Zealand and a dual citizen of Finland and Germany who had his name legally changed. The 37-year-old was previously known as Kim Schmitz and Kim Tim Jim Vestor.

Two other German citizens and one Dutch citizen also were arrested and three other defendants ? another German, a Slovakian and an Estonian ? remain at large.

Megaupload has retained Washington power attorney Bob Bennett to defend it, according to a person inside the company. Bennett is best known for representing former President Bill Clinton during the Monica Lewinsky scandal. The person within Megaupload spoke on condition of anonymity because he was not authorized to discuss the company's plans.

The Electronic Frontier Foundation, which defends free speech and digital rights online, said in a statement that the arrests set "a terrifying precedent. If the United States can seize a Dutch citizen in New Zealand over a copyright claim, what is next?"

The indictment was unsealed one day after websites including Wikipedia and Craigslist shut down in protest of two congressional proposals intended to make it easier for authorities to go after sites with pirated material, especially those with overseas headquarters and servers.

Before Megaupload was taken down, the company posted a statement saying allegations that it facilitated massive breaches of copyright laws were "grotesquely overblown."

"The fact is that the vast majority of Mega's Internet traffic is legitimate, and we are here to stay. If the content industry would like to take advantage of our popularity, we are happy to enter into a dialogue. We have some good ideas. Please get in touch," the statement said.

Several sister sites were also shut down, including one dedicated to sharing pornography files.

News of the shutdown seemed to bring retaliation from hackers who claimed credit for attacking the Justice Department's website. Federal officials confirmed it was down for hours Thursday evening and that the disruption was being "treated as a malicious act."

A loose affiliation of hackers known as "Anonymous" claimed credit for the attack. Also hacked was the site for the Motion Picture Association of America, which has campaigned for a crackdown on piracy.

According to the indictment, Megaupload was estimated at one point to be the 13th most frequently visited website on the Internet. Current estimates by companies that monitor Web traffic place it in the top 100.

Megaupload is considered a "cyberlocker," in which users can upload and transfer files that are too large to send by email. Such sites can have perfectly legitimate uses. But the Motion Picture Association of America estimated that the vast majority of content being shared on Megaupload was in violation of copyright laws.

The website allowed users to download some content for free, but made money by charging subscriptions to people who wanted access to faster download speeds or extra content. The website also sold advertising.

Megaupload was unique not only because of its massive size and the volume of downloaded content, but also because it had high-profile support from celebrities, musicians and other content producers who are most often the victims of copyright infringement and piracy. Before the website was taken down, it contained endorsements from Kim Kardashian, Alicia Keys and Kanye West, among others.

The company listed Swizz Beatz, a musician who married Keys in 2010, as its CEO. He was not named in the indictment and declined to comment through a representative.

The five-count indictment, which alleges copyright infringement as well as conspiracy to commit money laundering and racketeering, described a site designed specifically to reward users who uploaded pirated content for sharing, and turned a blind eye to requests from copyright holders to remove copyright-protected files.

For instance, users received cash bonuses if they uploaded content popular enough to generate massive numbers of downloads, according to the indictment. Such content was almost always copyright protected, the indictment said.

The Justice Department said it was illegal for anyone to download pirated content, but their investigation focused on the leaders of the company, not end users who may have downloaded a few movies for personal viewing.

A lawyer who represented the company in a lawsuit last year declined to comment Thursday. Efforts to reach an attorney representing Dotcom were unsuccessful.

Although Megaupload is based in Hong Kong, the size of its operation in the southern Chinese city was unclear. The administrative contact listed in its domain registration, Bonnie Lam, did not respond immediately for a request for comment sent to a fax number and email address listed.

The indictment was returned in the Eastern District of Virginia, which claimed jurisdiction in part because some of the alleged pirated materials were hosted on leased servers in Ashburn, Virginia. Prosecutors there have pursued multiple piracy investigations.

The Justice Department also was investigating the "significant increase in activity" that disrupted its website. It said in a statement that it was working to "investigate the origins of this activity, which is being treated as a malicious act until we can fully identify the root cause."

The site appeared to be working again late Thursday. A spokesman for the Motion Picture Association of America said in an emailed statement that the group's site also had been hacked, but it too appeared to be working later in the evening.

"The motion picture and television industry has always been a strong supporter of free speech," the spokesman said. "We strongly condemn any attempts to silence any groups or individuals."

____

Matthew Barakat reported from McLean, Virginia. AP Business Writer Daniel Wagner in Washington contributed to this report.

Source: http://us.rd.yahoo.com/dailynews/rss/internet/*http%3A//news.yahoo.com/s/ap/20120120/ap_on_hi_te/internet_piracy_indictment

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Saturday, January 21, 2012

Obama, in Florida, unveils plans to boost tourism (AP)

LAKE BUENA VISTA, Fla. ? Targeting prize electoral territory, President Barack Obama called Thursday for America to become the world's top travel destination, making an economic pitch to Florida voters from the Magic Kingdom ahead of an upcoming Republican presidential primary.

"America is open for business," Obama declared in his talk in front of the sun-splashed Cinderella Castle in the heart of Disney World. "We want to welcome you," he said.

Obama issued an executive order seeking to boost tourist visa processing in China and Brazil and took additional steps including promoting national parks and adding business executives to a tourism advisory board.

The goal is to significantly increase travel and tourism in the United States. The White House said that more than 1 million U.S. jobs could be created over the next decade, according to industry projections, if the U.S. increases its share of the international travel market.

"The more folks who visit America, the more Americans we get back to work. It's that simple," Obama said.

Trumpeting America's attractions, Obama rattled off a list of can't-miss tourist sites from Yellowstone and Yosemite national parks to the Golden Gate Bridge and the skyline of his native Chicago.

"We've got the best product to sell. I mean, look at where we are. We've got the most entertaining destinations in the world. This is the land of extraordinary natural wonders," he said.

Beyond the economic case, Obama's trip to the tourist mecca was the latest bid by the White House and his campaign to steal a share of the spotlight from Republicans vying for the GOP presidential nomination. Obama held a live video conference with Iowa voters during the Republican caucus, Vice President Joe Biden held a similar event with voters in New Hampshire on the night of the state's first-in-the-nation primary, and next week Obama will travel to Nevada, which follows Florida on the primary calendar.

Obama's high-profile trip to Florida could help him counter attacks on his record lobbed by Republican presidential candidates during stops across the state, where tough television ads are already airing. And it allows Obama to lay the groundwork for the general election campaign in Florida, a key political battleground he carried in 2008.

The state holds 29 electoral votes, making it a top target for both Obama and his Republican rivals. Florida twice backed Republican George W. Bush, providing the decisive electoral votes in the cliffhanger 2000 election that was decided after a 36-day recount.

Republican front-runner Mitt Romney greeted Obama with an open letter to the president running as an ad in Thursday's editions of the Tampa Bay Times. "Welcome to Florida," Romney says in the ad. "I have a simple question for you: Where are the jobs?"

"Perhaps there's some poetic justice in the president speaking from Fantasyland," Romney added in a conference call with reporters. "Because, I'm afraid, he's been speaking from Fantasyland for some time now."

A recent Quinnipiac University poll showed the president in a near-statistical tie with Romney in Florida in a head-to-head matchup.

Tourism is a key component of the economy in Florida, which is burdened by 10 percent unemployment and rampant home foreclosures. Thursday's tourism and travel announcement was part of the president's "We Can't Wait" initiative aimed at promoting executive actions Obama can take without congressional approval.

The White House said the travel and tourism industry represent 2.7 percent of gross domestic product and 7.5 million jobs in 2010. But the U.S. share of spending by international travelers fell from 17 percent to 11 percent between 2000 and 2010, due to increased competition and changes in global development, as well as security measures imposed after Sept. 11, 2001, according to the White House.

Obama's executive order aims to: boost non-immigrant visa processing capacity in China and Brazil by 40 percent this year; expand a Visa Waiver Program that allows participating nationals to travel to the U.S. for stays of 90 days or less without a visa; appoint a new group of chief executives to the U.S. Travel and Tourism Advisory Board, and direct an interagency task force to develop recommendations for a National Travel and Tourism Strategy, including promoting national parks and other sites.

That was good news to Brazilian visitors Lilian Lara and Lindbergh Souza, who welcomed the change in visa procedures as they shopped along the resort's streets hours before the president's speech.

"It will make things a whole lot better," said Lara, a 22-year-old student from Sao Paolo, who is working as a summer intern at the theme park resort.

Souza said the visa process was expensive, at $500, and also time consuming, especially for Brazilians who don't live close to consuls in Rio de Janiero and Sao Paulo.

"The whole process took me six months," said Souza, who welcomed the president's efforts to speed up the visa process especially for visitors from Brazil and China.

The White House insisted the president's trip to Florida was not purely political, dismissing suggestions that his itinerary was connected to a slate of upcoming Republican primaries. Obama spokesman Jay Carney said there were few tourist destinations "as iconic as Disney World" and the tourist attractions surrounding Orlando represented a fitting place to talk about the president's initiatives.

From Florida, Obama was to fly to New York City for four glitzy campaign fundraisers, including an event at the famed Apollo Theater featuring performances by Al Green and India.Arie. Tickets to that fundraiser start at $100.

The president also was to attend a $35,800 per ticket fundraiser at the home of director Spike Lee, and two small fundraisers at Daniel, an exclusive Manhattan restaurant. Tickets start at $5,000 for the first restaurant fundraiser and $15,000 for the second.

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Associated Press writer Mike Schneider contributed to this report.

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Follow Julie Pace at http://twitter.com/jpaceDC

Source: http://us.rd.yahoo.com/dailynews/rss/obama/*http%3A//news.yahoo.com/s/ap/20120119/ap_on_el_pr/us_obama

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