FTC tightens rules protecting children's online privacy

 The government announced tighter rules on Wednesday to protect children's online privacy by restricting the collection of data, like the child's location, unless parents consent.
The actions by the Federal Trade Commission mark an update to rules that were based on the 1998 Children's Online Privacy Protection Act, developed when most computers were big beige boxes sitting under office desks instead of smartphones in backpacks, and online social media was unheard of.
"The Commission takes seriously its mandate to protect children's online privacy in this ever-changing technological landscape," FTC Chairman Jon Leibowitz said in a statement.
Under the updated rule, IP addresses, which are unique to each computer, will be added to the list of personal information that cannot be collected from children without parental consent if the data will be used for behavioral advertising or tracking.
Location, photos, videos and audio files were also added to the definition.
Leibowitz said the commission struck "the right balance between protecting innovation that will provide rich and engaging content for children, and ensuring that parents are informed and involved in their children's online activities."
But Senator John Rockefeller, a West Virginia Democrat and chair of the Senate Commerce, Science and Technology Committee, which oversees the FTC, said he had wanted legislation that went further.
"There are groups that will complain about it (COPPA being too weak), and so will I, but we can't do anything more about it right now," he said. "Children's privacy as far as I am concerned is an absolutely top line issue."
Privacy advocates and advertising companies had been watching closely to see if the agency would go through with a pledge made in August to add IP addresses to the restrictions.
Advertisers had argued against the move since several people in a family - adults and children - could use the same computer. Privacy advocates said it was needed to protect children.
Also under the updated rule, plug-ins and other third parties connected to children's websites and apps cannot allow third parties to collect information on children without parental consent.
Big companies would be able to deal with the changes but the tighter regulators could be onerous for smaller firms, said John Feldman of the law firm Reed Smith LLP.
"I represent companies who are trying to sell products and services," he said. "The bigger companies feel like they can deal with it. There are significant costs that will be associated with this."
Privacy advocate Kathryn Montgomery, who teaches at American University, said the update was needed, given the growth of social networks and mobile computing. She urged the FTC to be tough about enforcing the rules.
"The new rules should help ensure that companies targeting children throughout the rapidly expanding digital media landscape will be required to engage in fair marketing and data collection practices," she said.
The proposal also specifies that family websites, which are websites aimed at children and adults, would be allowed to screen users to determine their ages and only provide protection to children under age 13.
Currently, all visitors to the websites must be treated as if they are under age 13.
The FTC's rule implementing COPPA became effective in 2000.
The updated rule takes effect on July 1. It was approved by a vote of three to one with one commissioner abstaining.

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Vatican takes first spot in Internet domain name draw

 The Vatican has come out in first place in a long-awaited draw to expand the Internet address system with new domain names that go beyond the usual .com, .org or .net endings.
ICANN, the corporation that oversees the Internet address system, announced this week the domain name .catholic written in Chinese characters will be the first bid it considers in a drive to expand and reorganize sites on the World Wide Web.
The same extension in Arabic letters ranked 25th in the random draw and the Vatican's application for a version in Cyrillic for Russian and other Slavic languages came in 96th.
Ranking high means the applicant could get approval early next year to operate the new domain and approve addresses using it. In the Vatican's case, Rome could then ensure only genuine Roman Catholic institutions get to use that domain name.
"This is a way to give a coherence and authentication to our presence in the digital arena," said Monsignor Paul Tighe, secretary of the Pontifical Council for Social Communications.
"Anyone looking online will recognize the site belongs to an institution that belongs to the Catholic Church," he said, adding the new, so-called top level domain names (|TLDs) could also help speed online searches.
.BIBLE AND .ISLAM
For online retailers such as Amazon, whose application for .store in Japanese came in second, early approval could mean a competitive advantage and prompt a quick introduction of the new name.
But the Vatican did not enter the draw for commercial reasons and would not rush to launch its TLDs, Tighe said. In addition, the main TLD it seeks - .catholic in Latin letters - ended up in 1,366th place and may take months before it is approved.
Website owners are now restricted to a few dozen TLDs such as .com and country code domains such as .co.uk or .fr. Many of the 1,930 applications for new TLDs came from companies, including Internet giants such as Amazon and Google.
Several other faith-based groups applied for other TLDs such as .bible or .islam. The extension .mormon was the next-highest religious application drawn, coming in at 118th place.
ICANN (www.icann.org), the Internet Corporation for Assigned Names and Numbers, has stressed that assigning a certain TLD does not imply any endorsement of the religious group seeking it, just recognition it is the best suited to use the name.
Tighe said the ICANN draw handled applications for TLDs in non-Latin alphabets first, which explained why the Vatican's Chinese, Arabic and Cyrillic extensions came out far ahead of its main TLD in Latin letters.
INTERNET IMPRIMATUR
ICANN invited comments on applications earlier this year. The Vatican's application for exclusive use of .catholic drew criticism from members of several Protestant churches that also use the term, which comes from the Greek for "universal".
"This request is a move by a powerful group to squelch the voices and rights of other Christians," Dave Daubert, pastor of Zion Lutheran Church in Elgin, Illinois, wrote on the ICANN webpage for comments on the applications.
Saudi Arabia, the birthplace of Islam, apparently saw no hope of a consensus on religious TLDs and opposed them all.
Some religions seem to have kept out of the fray entirely. There were no applications for .buddhist, .hindu or .jewish.

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Vatican says pope beats Justin Bieber on re-tweets

 Pope Benedict, white-haired, 85, and a neophyte to social media site Twitter, has beaten out 18-year old heartthrob Justin Bieber to set a percentage record for re-tweeting by his followers, the Vatican said on Thursday.
The Vatican newspaper said that as of noon Italian time on Thursday the pope had 2.1 million followers on Twitter, eight days after his first tweet was sent.
While Canadian singer-songwriter Bieber has roughly 15 times as many followers - 31.7 million - the Vatican newspaper said Benedict had beaten Bieber on re-tweets.
It said about 50 percent of the pope's followers had re-tweeted his first tweet on December 12 while only 0.7 percent of Bieber's followers had re-tweeted one of the singer's most popular tweets on September 26, when he commented on the death by cancer of a six-year-old fan.
The Vatican said this was part of a wider trend in which people were looking for more spiritual content.
The pope already tweets in English, German, Italian, French, Spanish, Portuguese, Polish and Arabic. The newspaper said he will start tweeting in Latin and Chinese soon.

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Saudi website editor could face death for apostasy-rights group

RIYADH (Reuters) - The editor of a Saudi Arabian website could be sentenced to death after a judge cited him for apostasy and moved his case to a higher court, the monitoring group Human Rights Watch said on Saturday.
Raif Badawi, who started the Free Saudi Liberals website to discuss the role of religion in Saudi Arabia, was arrested in June, Human Rights Watch said.
Badawi had initially been charged with the less serious offence of insulting Islam through electronic channels, but at a December 17 hearing a judge referred him to a more senior court and recommended he be tried for apostasy, the monitoring group said.
Apostasy, the act of changing religious affiliation, carries an automatic death sentence in Saudi Arabia, along with crimes including blasphemy.
Badawi's website included articles that were critical of senior religious figures, the monitoring group said.
A spokesman for Saudi Arabia's Justice Ministry was not available to comment.
The world's top oil exporter follows the strict Wahhabi school of Islam and applies Islamic law, or sharia.
Judges base their decisions on their own interpretation of religious law rather than on a written legal code or on precedent.
King Abdullah, Saudi Arabia's ruler, has pushed for reforms to the legal system, including improved training for judges and the introduction of precedent to standardize verdicts and make courts more transparent.

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Sri Lanka arrests 100 Chinese for cyber fraud, police say

 Sri Lanka on Saturday arrested at least 100 Chinese nationals accused of an internet fraud scheme targeting people in their home country, a police spokesman said.
The accused, all in Sri Lanka on tourist visas, are suspected of hacking into computers in China and then demanding their owners transfer them money, police spokesman Prishantha Jayakodi told Reuters.
Chinese police requested help from Sri Lanka, he said.
Officials at the Chinese embassy in Colombo were not available for comment.
China has been the top lender to Sri Lanka since the end of a 25-year war in May 2009 and thousands of Chinese are working in the country on Chinese-funded infrastructure projects.

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Bird flu kills 4-year-old boy in Indonesia

JAKARTA, Indonesia (AP) — A 4-year-old Indonesian boy has died from bird flu, bringing the death toll to 160 in the country hardest-hit by the deadly virus, a health official said Tuesday.
While the H5N1 bird flu virus has killed relatively few people, scientists have been closely monitoring it for its potential to mutate and affect humans worldwide.
The boy died Dec. 6 in Tangerang city, just west of Jakarta, the capital, said Health Ministry official Rita Kusriastuti. He developed symptoms of a cold and fever on Nov. 30 and was treated at a public health center before being hospitalized the same day he died.
Kusriastuti said the boy, from the West Java district of Bogor, was believed to have been infected with the H5N1 virus after having direct contact with dead fowl around his house.
Bird flu has killed at least 360 people worldwide since 2003. It remains hard for people to catch, but experts fear it could mutate into a more deadly form that spreads easily from person-to-person. So far, most human cases have been linked to contact with infected poultry.
Last week, Kusriastuti said a form of the H5N1 virus not previously detected in Indonesia had killed hundreds of thousands of ducks on the main island of Java. The type of virus has been found circulating in a number of other countries and does not indicate any change that makes humans more susceptible.
The new form of the virus is believed to have entered Indonesia through imported ducks, but Kusriastuti said it's also possible it may have evolved on its own from existing strains.
Bird flu remains entrenched in Indonesia and elsewhere. It typically flares up during the winter months in affected countries with increases in poultry outbreaks and human cases.

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Merck, GE to collaborate on Alzheimer's drug development

 Merck & Co and General Electric Co's healthcare unit have agreed to collaborate on an experimental drug for Alzheimer's disease, the companies said on Tuesday.
GE Healthcare will supply Flutemetamol, an investigational imaging agent, to Merck for use with its experimental Alzheimer's disease drug MK-8931.
The companies hope GE's imaging agent will help identify patients who might benefit from a therapy such as Merck's, which targets beta amyloid, a protein that can clump together and form plaques in the brain. Such plaques have been found in the brains of patients with Alzheimer's disease.
MK-8931 is Merck's lead Alzheimer's drug candidate and is designed to modify progression of the disease as well as improve symptoms. Alzheimer's robs patients of their memory and can cause other cognitive disturbances.
Based on promising results from an early-stage clinical trial of MK-8931, Merck plans to move forward with a larger trial, called EPOCH, at multiple sites around the world.
Flutemetamol is a positron emission tomography (PET) imaging agent that has been able, in clinical trials, to detect beta amyloid in the brain.
GE Healthcare will supply Flutemetamol to help select patients for clinical trials and evaluate the agent as a companion diagnostic tool. Financial and other terms of the agreement between the companies were not disclosed.

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Diabetes remission possible with diet, exercise

 One in nine people with diabetes saw their blood sugar levels dip back to a normal or "pre-diabetes" level after a year on an intensive diet and exercise program, in a new study.
Complete remission of type 2 diabetes is still very rare, researchers said. But they added that the new study can give people with the disease hope that through lifestyle changes, they could end up getting off medication and likely lowering their risk of diabetes-related complications.
"Kind of a long-term assumption really is that once you have diabetes there's no turning back on it, and there's no remission or cure," said Edward Gregg, the lead author on the report from the Centers for Disease Control and Prevention.
The research, he told Reuters Health, "is a reminder that adopting a healthy diet, physically-active lifestyle and reducing and maintaining a healthy weight is going to help manage people's diabetes better."
His team's study can't prove the experimental program - which included weekly group and individual counseling for six months, followed by less frequent visits - was directly responsible for blood sugar improvements.
The original goal of the research was to look at whether that intervention lowered participants' risk of heart disease (so far, it hasn't).
But the diabetes improvements are in line with better weight loss and fitness among people in the program versus those in a comparison group who only went to a few annual counseling sessions, Gregg's team reported Tuesday in the Journal of the American Medical Association.
IS IT COST-EFFECTIVE?
About eight percent of people in the United States have diabetes, according to the American Diabetes Association. The new study included 4,503 of them who were also overweight or obese.
People randomly assigned to the intensive program had diet and exercise counseling with a goal of cutting eating and drinking back to 1200 to 1800 calories per day and increasing physical activity to just under three hours per week.
After one year, 11.5 percent of them had at least partial diabetes remission, meaning that without medication their blood sugar levels were no longer above the diabetes threshold. That compared to just two percent of participants in the non-intervention group who saw their diabetes improve significantly.
People who'd had diabetes for fewer years were more likely to have blood sugar improvements, as were those who lost more weight or had stronger fitness gains during the study.
However, less than one-third of people whose diabetes went into remission during the program managed to keep their blood sugar levels down for at least four years, the researchers found.
"Clearly lifestyle intervention is good for people with diabetes," said Dr. John Buse, a diabetes researcher from the University of North Carolina at Chapel Hill School of Medicine.
"The question is how cost-effective is it, what are the long-term consequences (and) how would it really compare with alternative approaches like bariatric surgery and drug therapy?" Buse, who wasn't involved in the new study, told Reuters Health.
Dr. David Arterburn, from Group Health Research Institute in Seattle, said some studies of weight-loss surgery, for instance, have found two-thirds of people who start out with diabetes have complete remission.
Arterburn, who co-wrote an editorial published with the new study, said anyone with diabetes - or at high risk - should consider either lifestyle interventions or surgery, if they're eligible, to reduce future health risks.
Gregg said his team was working on a cost-analysis of the current program, but that it was fairly "resource-intensive."
"If people have access to the support to make these sorts of changes, they may have the benefits that we've seen here," he said. But, "What we should remember is that more modest changes in lifestyle are also effective."

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Intensive Weight Loss Programs Might Help Reverse Diabetes

Type 2 diabetes has long been thought of as a chronic, irreversible disease. Some 25 million Americans are afflicted with the illness, which is associated with obesity and a sedentary lifestyle, as well as high blood pressure. Recent research demonstrated that gastric bypass surgery--a form of bariatric surgery that reduces the size of the stomach--can lead to at least temporary remission of type 2 diabetes in up to 62 percent of extremely obese adults. But can less drastic measures also help some people fight back the progressive disease?
A new randomized controlled trial found that intensive weight loss programs can also increase the odds that overweight adults with type 2 diabetes will see at least partial remission. The findings were published online December 18 in JAMA, The Journal of the American Medical Association. "The increasing worldwide prevalence of type 2 diabetes, along with its wide-ranging complications, has led to hopes that the disease can be reversed or prevented," wrote the authors of the new paper, led by Edward Gregg of the Centers for Disease Control and Prevention.
The study tracked 4,503 overweight adults with type 2 diabetes for four years. About half of the subjects received basic diabetes support and education (including three sessions per year that covered diet, physical activity and support). The other half received more intensive lifestyle-intervention assistance. This second group received weekly individual and group counseling for six months, followed by three-sessions each month for the next six months, and refresher group sessions and individual contact for the subsequent three years. The interventions aimed to help individuals limit daily calories to 1,200 to 1,800--in particular by reducing saturated fat intake--and to help them get the recommended 175 minutes per week of physical activity.
After two years about one in 11 adults in the intervention group experienced at least partial remission of their diabetes, meaning that a patient's blood sugar levels reverted to below diabetes diagnosis levels without medication. Only about one in 60 in the control group, which received only basic support and education, saw any remission after two years. The findings suggest that "partial remission, defined by a transition to prediabetic or normal glucose levels without drug treatment for a specific period, is an obtainable goal for some patients with type 2 diabetes," the researchers noted.
The improvement, however, was not indefinite for everyone. After four years, only about one in 30 people in the intervention group were still seeing an improvement in their condition. Researchers think that regaining weight and falling behind on diet and physical activity goals increase the risk that people will return to a diabetic state.
About one in 75 in the intervention group saw complete remission of their diabetes, in which glucose levels returned to normal without medication.
The study did not find, however, that individuals in the lifestyle intervention group had lower risks for heart trouble, stroke or death than did those in the control group. "This recently led the National Institutes of Health to halt the [trial]," noted David Arterburn, of Group Health Research Institute in Seattle, and Patrick O'Connor, of HealthPartners Institute for Education and Research in Minneapolis, in an essay in the same issue of JAMA. Similar results have come out of studies looking at more intensive medical treatment of diabetes. "A more potent intervention--bariatric surgery--already appears to achieve what intensive medical and lifestyle interventions cannot: reducing cardiovascular events and mortality rates among severely obese patients with type 2 diabetes," they noted.
As with any disease, however, prevention is the best strategy. "The disappointing results of recent trials of intensive lifestyle and medical management in patients with existing type 2 diabetes also underscore the need to more aggressively pursue primary prevention of diabetes," Arterburn and O'Connor noted. One recent study found that compared with no treatment at all, lifestyle interventions reduced the onset of type 2 diabetes by 58 percent in people with pre-diabetes (and the medication metformin reduced the onset rate by 31 percent). Bariatric surgery seemed to reduce the onset of diabetes in obese patients by 83 percent, Arterburn and O'Connor pointed out in their essay.
For people who already have diabetes, however, those who are still in the early stages and those with the biggest weight loss and/or fitness improvement had the best odds for beating the disease. And even if lifestyle interventions aren't capable of dialing back the disease entirely, any reduction--whether through lifestyle or other changes-in the need for medication and in medical complications due to diabetes can be considered an improvement in managing the disease, which already costs the U.S. health system $116 billion each year and is estimated to affect 50 million Americans by 2050.

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9/11 cancer study won't settle debate over risks

 The most comprehensive study of potential World Trade Center-related cancers raises more questions than it answers and won't end a debate over whether the attacks were really a cause.
The study suggests possible links with prostate, thyroid and a type of blood cancer among rescue and recovery workers exposed to toxic debris from the terrorist attacks. But there were few total cancers and even the study leaders say the results "should be interpreted with caution."
The study involved nearly 56,000 people enrolled in a registry set up to monitor health effects from those exposed to the aftermath of the trade center attacks. Most participants volunteered for enrollment, which could skew the results if people who already had symptoms were more likely to enroll than healthier people.
Cancers diagnosed through 2008 were included in the study, but that's just seven years after the 2001 attacks, and cancer often takes longer to develop. People diagnosed with cancer before the attacks were excluded from the study.
Cancer rates were compared with those in the general New York state population. But the researchers had no data on whether people in the study had risk factors for getting cancer, including a strong family history, or if they had existing cancer that wasn't detected until after the disaster. Participants are being monitored for health issues and may have gotten more cancer screening than other people, which also could skew the results.
The increased risks were seen only in rescue and recovery workers, who likely had more direct, sustained contact with potential cancer-causing substances in the dust, smoke and debris from the attacks. But cancers weren't more common in workers who had the most exposure — a finding that would seem to contradict the theory that contact was the cause.
The study comes just a few months after the federal government added dozens of types of cancer to a list of illnesses related to the trade center attacks that will be covered by a program to pay for health coverage.
The study results "won't settle the question because it's still too early," said Dr. Thomas Farley, New York City's health commissioner. "People are very, very interested in this topic and we thought it was important to get the data out that we have even though it is early."
Marijo Russell O'Grady, dean of students at Pace University's New York City campus, was at her office near the trade center during the attacks. She also lives nearby, and said she worries about how exposure to choking dust, ash and an "overwhelming burnt plastic smell" might affect her family, including her then 1 1/2 year-old son. They are all enrolled in the health registry.
Cancer is her greatest concern and it's "always present in the back of my mind," she said.
Researchers from the city's health department led the study, which was partly paid for by the National Institute for Occupational Safety and Health. NIOSH spokesman Fred Blosser said the agency welcomes the results and that longer follow-up is needed to examine risks for cancers with that take a long time to develop.
The study appears in Wednesday's Journal of the American Medical Association.
Earlier research from the same registry linked the attacks with respiratory problems including asthma and symptoms of post-traumatic stress.
The new study involved a broader array of people, including firefighters and other emergency workers, along with residents and employees of workplaces near ground zero, Farley said.
In the new study, possible links were mainly seen with cancers diagnosed in 2007 and 2008 in rescue and recovery workers. These included 67 cases of prostate cancer, 13 thyroid cancer cases, and seven cases of multiple myeloma — all at rates higher than in the New York state population.
Donald Berry, a biostatistics professor at the University of Texas MD Anderson Cancer Center in Houston, said the study has too many limitations to draw any definitive conclusions.
"There's no evidence that 9/11 caused any of these cancers," Berry said.
He pointed out that no increased risks were found for lung cancer — a cancer that might seem plausible after breathing lots of toxic dust and smoke.

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Italy's lower house approves Monti's budget plans

 Italy's lower house of parliament on Thursday approved a package of budget measures including a sales tax hike and a cut in some payroll taxes, aimed at helping the government reach its deficit-cutting targets.
Approval was expected after Prime Minister Mario Monti's government won three confidence votes on Wednesday that it had called to speed up passage of the budget.
The measures will now move to the Senate for approval, which is expected before Christmas.
The Chamber of Deputies approved the plans by 372 votes against 73.
The budget, enshrined in a so-called Stability Law, is central to Monti's efforts to lower Italy's public deficit to 1.8 percent of output next year from a targeted 2.6 percent in 2012.
Monti agreed at the end of October to overhaul the first draft of the budget legislation by replacing a planned income tax cut with a reduction in payroll taxes paid by employers.
The package still includes a one percentage point rise in the highest value-added tax (VAT) rate, which will go into effect next July, bringing it to 22 percent. The lower 10 percent rate will not be increased as previously planned.
The Stability Law is expected to be one of the final pieces of major legislation approved under Monti before Italy gears up for a national election.

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Kan. agency posting tax guidance ahead of new law

The Kansas Department of Revenue is posting guidance regarding two provisions of the state income tax law ahead of changes that take effect in January.
Spokeswoman Jeannine Koranda said Tuesday that the guidance lets accountants, tax attorneys and residents know how the agency will be interpreting inconsistencies within the law. One of the items deals with how the taxpayers will be able to use itemized deductions to reduce their tax liability.
The state also sent out mailers earlier this year to 146,000 businesses to inform them about the new tax law and how it could apply to them.
"The reason for that is that they are the ones who really have to take any action before Jan. 1," Koranda said, such as changing how the business is organized for tax purposes. "Most people won't have to deal with the new law before next year when we send out the tax forms."
Koranda says the revenue department will ask the 2013 Legislature to make changes to the law to codify the guidance.
The state will reduce individual income tax rates, drop the top tax rate to 4.9 percent from 6.45 percent and increase the standard deductions claimed by married couples and heads-of-household. The state also will exempt the owners of 191,000 partnerships, sole proprietorships and other businesses from taxes.
Koranda said the impact will vary depending on each individual taxpayer and how they file their return, including marital status, number of children and how many other deductions or exemptions that are claimed. For example, a married head-of-household tax filer earning $52,000 a year should see about $12 more in a biweekly paycheck.
"One of the other places that people will see is the change in 2014 when they get the higher standard deduction that doubles to $9,000 for married and single head-of-household payers," she said.
Legislative researchers have estimated that the cuts will be worth $4.5 billion over the next six years. But the researchers also project that the cuts will create collective budget shortfalls approaching $2.5 billion during the same period. A group of state officials and economists estimate legislators will have to close a projected shortfall of more than $327 million next spring when they draft the state budget for fiscal year 2014.
Koranda didn't know how many existing businesses might be changing their classification to take advantage of the tax changes.
"Honestly, we won't know if businesses were changing their structures until they file their taxes in 2014 more than a year from now," she said.

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Harbinger Group returns to profit in 4th quarter

 Harbinger Group it returned to a profit in its fiscal fourth quarter, buoyed by a large income tax benefit and improved revenue for both its consumer products business and its financial services and insurance segment.
For the three months ended Sept. 30, the New York-based holding company earned $159.1 million, or 78 cents per share. That compares with a loss of $107.1 million, or 77 cents per share, a year ago.
The quarter included an income tax benefit of $135.9 million compared with gain of $13.4 million in the prior-year period.
Revenue shot up 35 percent to $1.2 billion from $888.5 million.
Revenue climbed for the consumer products unit, which includes Spectrum Brands, the company behind products ranging from Rayovac Batteries to George Foreman grills, edged up less than 1 percent to $832.6 million. Revenue for its insurance and financial services segment rose nearly sixfold, to $364.3 million.
Harbinger Group Inc., which is run by hedge fund manager Philip Falcone, said Tuesday said its full fiscal year net income climbed 35 percent to $29.9 million, or 15 cents per share, from $22.2 million, or 9 cents per share, in the previous year.
Annual revenue increased 29 percent to $4.48 billion from $3.48 billion, helped by a full-year of results from Fidelity & Guaranty Life Holdings Inc. Fidelity & Guaranty was acquired in April 2011. In addition, revenue for the consumer products unit, climbed 2 percent.
Fiscal 2012 results included an $85 million income tax benefit and a $41 million gain related to the reduced contingent purchase price of Fidelity & Guaranty. This was somewhat offset by a charge tied to its preferred stock.
Harbinger shares closed Monday at $8.70, and has more than doubled since the start of the year.

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NH health agency seeks $321M more in next budget

 New Hampshire's biggest agency asked Tuesday for $321 million more from state tax sources in the two-year state budget Gov.-elect Maggie Hassan must present to lawmakers in February.
Health and Human Services Commissioner Nicholas Toumpas testified at a hearing on the request that one of the biggest increases is due to a change in how the state pays nursing homes for Medicaid care. He said the state now must pay nursing homes based on rates, not on what lawmakers budget to spend.
Toumpas is requesting a 25 percent increase in the portion of the agency's budget that's supported by state tax sources. It would increase the funding to $1.6 billion from the current two-year appropriation of $1.3 billion.
The agency's current total budget is $3.7 billion, most of which from federal funds.
"The department — like all state agencies — is in the middle of a storm," Toumpas said.
He said people continue to seek help from the state as a result of the recession, but the numbers have leveled off in all but those needing food stamps. About 25 percent of those who apply for the federal food help are rejected, but the state must provide the staff to make the determination regardless whether they are denied, he said.
Overall, the number of caseloads has risen 15 percent since July 2009. At the same time, the number of filled jobs at his agency dropped 15 percent, he said. In addition, key members of the staff will be eligible for retirement soon, he said. That has caused stress on the staff, he said.
Toumpas said he knows the state has limited funds to provide services to everyone who is in need and promised to continue to try to find savings.
He said he included money cut from the current budget to boost payments to hospitals caring for the poorest residents. Ten hospitals sued over the budget cut in a case still pending in federal court.
Toumpas said a managed care program for Medicaid that was supposed to save $15 million in the current budget still is not operating due to slow negotiations between contractors and the health care providers needed to build a network.
On Monday, Hassan opened the budget hearings with a caution that agency requests are unrealistic. Agencies requested $3.3 billion in spending from state tax sources — a 26 percent increase over the current budget — and $11.9 billion from all funding sources or a 19 percent increase.

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First cracks in GOP resolve on tax rates

 The first cracks are developing among Republicans over whether to accept a quick deal with President Barack Obama on allowing the top two income tax rates to expire, even as an administration official said the White House was stepping up behind-the-scenes negotiations.
Conservative Oklahoma GOP Rep. Tom Cole told GOP colleagues in a private meeting Tuesday that it's better to make sure that tax cuts for the 98 percent of taxpayers who make less than $200,000 or $250,000 a year are extended than to battle it out with Obama and risk increasing taxes on everyone.
Cole's remarks are noteworthy because he's a longtime GOP loyalist and a confidant of House Speaker John Boehner, R-Ohio. They were made in a meeting of the House GOP Republican whip team, which is a sounding board for GOP leaders.
"If we don't believe taxes should go up on anybody, why can't we accept a deal that takes 98 percent out and still leaves us free to fight on the other grounds," Cole said in an interview on Wednesday. "I'm not for using the American people for leverage or as a hostage."
Meanwhile, an administration official speaking on grounds of anonymity told The Associated Press that two of Obama's top negotiators on the fiscal issues will meet separately Thursday with leading lawmakers.
The sessions are seen as an important step in determining how the government will avoid a year-end package of tax increases and spending cuts that could throw the economy into recession.
Treasury Secretary Timothy Geithner and White House legislative chief Rob Nabors will meet with House Speaker John Boehner of Ohio, Senate Republican leader Mitch McConnell of Kentucky, Senate Majority Leader Harry Reid of Nevada and House Democratic leader Nancy Pelosi of California, said the official, who said he could not speak on the record because the meetings had not yet been publicly announced.
Some Republicans on the Hill have been worried that the GOP would lose a bargaining advantage by separating tax cuts for the highest earners from everyone else, but Cole said he believes the reverse is true. "I think we have the winning argument," he said. "Most Americans intuitively understand that raising taxes on small business is costing them jobs."
Cole's comments drew a rebuke from Boehner, who is standing firm against Obama's demand that tax rates go up for top earners.
"He's a wonderful friend of mine and a great supporter of mine, but raising taxes on the so-called top 2 percent — half of those taxpayers are small business owners," Boehner said. "You're not going to grow the economy if you raise the top two rates. It'll hurt small business. It'll hurt our economy."
Reaction was mixed to his idea at a Wednesday morning meeting of House Republicans, Cole said. Conservative Rep. Raul Labrador, R-Idaho, who said he opposed Cole's idea, said he believed a majority of House Republicans also opposed it.
Cole said he expects to support whatever deficit-cutting deal Boehner is eventually able to negotiate with the White House as the two sides wrangle over how to avoid the "fiscal cliff" mix of tax increases and spending cuts that will occur automatically in January unless lawmakers avert them.
"This is a tactical argument, this is not a theological argument," Cole said. "We don't disagree on what we're trying to do."
Cole's comments were first reported by Politico.
There has been little evident progress between Obama and Boehner in talks aimed at striking a deal to avoid the fiscal train wreck. Republicans are worried that Democrats seem to be taking a harder line on cutting popular benefit programs like Medicare and Medicaid.
"We have not seen any good faith effort on the part of this administration to talk about the real problem that we're trying to fix," House Majority Leader Eric Cantor, R-Va., told reporters.
But House Democratic Leader Nancy Pelosi, D-Calif., said Wednesday that the starting point for talks should be a framework discussed by Obama and Boehner in the summer of 2011. Then, Democrats were willing to consider curbing the inflation adjustment for Social Security and lifting the eligibility age for Medicare — ideas that other top Democrats have taken off the table.
"We can all be there and start with that and go from there to reach an agreement," Pelosi said.
Pelosi made her remarks as she met with prominent business executives and Erskine Bowles, the chairman of Obama's 2010 deficit commission. Bowles and the executives also met with House GOP leaders.
Asked if he sensed Democrats could be more flexible on curbing so-called entitlement programs like Medicare, Bowles said: "I think we will see give in all areas if we're going to get a deal done. If not, we're going to go over this cliff, and I think everybody realizes that would be a disaster."
Obama said Wednesday he still believes that members of both parties can reach a framework agreement on a debt-cutting deal before Christmas.
He made a public statement, joined by about a dozen middle-class Americans who have raised concerns about their taxes going up at the end of the year. He said lawmakers face important deadlines in the coming weeks but the voices of the American people need to be a part of the debate.
The president said that officials need to "approach this problem with the middle-class in mind."
Obama could be in position to blame Republicans if an impasse results in the government going over the so-called fiscal cliff, an economy-rattling set of automatic spending cuts and tax increases from the expiration of longstanding tax cuts made in 2001 and 2003 during the Bush administration.
Democrats already are portraying GOP lawmakers as hostage-takers willing to let tax rates rise on everyone if lower Bush-era tax rates are not extended for the top 2 percent to 3 percent of earners — those with incomes above $200,000 for individuals and $250,000 for joint filers.
"Right now, as we speak, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody's income. Everybody's," Obama said. "And that means that 98 percent of Americans and 97 percent of small businesses wouldn't see their income taxes go up by a single dime."

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News Summary: Kodak sells patents for $525 million

STEPPING STONE: Eastman Kodak is selling its digital imaging patents for about $525 million, money the struggling photo pioneer says will help it emerge from bankruptcy protection in the first half of 2013.
GROUP OF 12: Apple Inc., Google Inc., Samsung Electronics Co., Research In Motion Ltd., Microsoft Corp., China's Huawei Technologies and Facebook Inc. are among the 12 companies paying to license the 1,100 patents, according to court filings.
HISTORY: Founded in 1880, Kodak filed for Chapter 11 bankruptcy protection in January after a long struggle to stay relevant. First came competition from Japanese companies, then the shift from film to digital photography. Kodak failed to keep up.

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Best Buy exec leaves for COO post at Symantec

Best Buy's president of digital operations is leaving the struggling electronics chain to become chief operating officer at the computer security company Symantec.
Best Buy has been implementing a turnaround plan as it faces tough competition from discounters and online retailers. The Minneapolis company last week extended until after the holiday season the window for co-founder Richard Schulze to make a buyout offer.
Best Buy Co. announced Wednesday that Stephen Gillett's responsibilities will now be divvied up, with responsibilities going to Chief Financial Officer Sharon McCollam, Scott Durchslag, the president of online and global e-commerce and Shawn Score, senior vice president of U.S. retail.
Gillett also served as executive vice president. He will take on that role at Symantec Corp. in addition to his COO post.
Gillett, who starts at Symantec on Friday, will report to its Chairman and CEO Steve Bennett. He will work at the company's Mountain View, Calif. headquarters.
Shares of Best Buy added 9 cents to $11.99 in premarket trading on Thursday.

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SC Gov Haley unveils $6.3 billion budget proposal

COLUMBIA, S.C. (AP) -- Gov. Nikki Haley's budget plan she presented Thursday would spend more on computer security, law enforcement and health care. She also asked that not-yet-projected revenue go toward tax relief that saves the average filer less than $30.
Her $6.3 billion budget plan for the fiscal year that starts July 1 seeks $47 million for computer security following a massive breach at the state's tax collection agency. More than 40 percent of the money would pay back a loan approved last week by the Budget and Control Board to cover costs incurred so far.
The Department of Revenue is receiving a $20.2 million loan this fiscal year from the state's insurance reserves.
Haley wants $12.4 million to complete computer upgrades at the agency, plus $3 million for security consultants.
The Republican governor also wants to hire 25 agents to supervise parolees, 10 natural resources officers, 18 state troopers and 15 employees at the State Law Enforcement Division, to include agents and lab technicians. She also wants to provide all troopers wireless access in their vehicles and upgrade prison officers' safety.
The only salary increases Haley proposes are to officers that work in the state's eight maximum security prisons for violent offenders. She recommends giving them a 3 percent boost.
She noted that when she visited Lee Correctional in Bishopville, where inmates took officers hostage in June and September, 60 positions were open. Authorities could not fill them "because people are too scared to work there," she said
Her budget would spend $10 million to build two watch towers at Lee Correctional and buy cameras and metal detectors and wands at prisons statewide.
"We are sending them in there every day and not giving them the tools to protect themselves," Haley said. "You are not giving money to prisoners. You're giving money to people who keep prisoners from harming you."
Haley said the budget's top cost driver is health care, with state employee benefits costing nearly $80 million more. Haley adamantly opposes expanding Medicaid eligibility under the federal health care — a decision left to legislators next session. Still, Haley's budget allocates an additional $67 million to Medicaid just to cover already-eligible residents expected to sign up after the law takes effect.
Governors generally release their executive budgets in January before session starts. But Haley said she wanted to get her proposal to legislators sooner this year in hopes they'll use more of her recommendations as they craft the budget. Haley recognized that legislators largely ignored former Gov. Mark Sanford's budget plans.
"We don't do this for kicks and giggles," she said.
Haley's $6.3 billion plan represents a 3 percent increase in spending from the state's general fund, which doesn't include federal money and other sources such as fines and fees that agencies collect.
Haley's budget is based on the Board of Economic Advisors' current predictions for tax collections in 2013-14. The board revises their estimate in the spring, which usually gives legislators more money to work with, though 2008-09 and 2009-10 were exceptions. On average over the last eight years, legislators have had $100 million more to allocate in their final approved spending plan than the governor.
Haley said when the "money tree falls" this spring, legislators should use $26 million of it to cut income taxes. Eliminating the 6 percent tax bracket, would save the average filer $29, according to her report.
She wants the rest spent on roads and bridges, calling that tax relief.
"This is an option not to increase the gas tax," she said.
The state transportation department anticipates needing nearly $50 billion over the next 20 years for infrastructure but only receiving $19 billion under the current system. The state motor fuel tax, which has been 16 cents per gallon since 1987, is the agency's main funding source but is declining due to improved vehicle fuel efficiency and higher costs for gasoline and diesel fuel.
Haley said she will not tolerate any move to increase that tax and considers her plan a start toward addressing the multi-billion-dollar need.

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Samsung is replacing faulty Galaxy S IIIs that are suddenly dying for no reason

Samsung (005930) is reportedly quietly replacing faulty Galaxy S III devices according to many users on XDA Developers. The issue appears to be related to the NAND becoming corrupted and killing off the Galaxy S III’s mainboard, which causes the phone to essentially “brick” itself. Users have reported the issues have affected some devices after 150-200 days after purchase. Users on XDA Developers and Reddit are also saying Samsung is replacing affected smartphones (rooted or not) with new ones that could potentially be just as faulty in another 200 days. The Galaxy S III made headlines last week when an XDA forum member discovered that a security hole in its Exynos-4 processor was vulnerable to app-based malware attacks. Samsung has since said it will patch the hole as soon as possible.

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Insight: Security fears dogged Canada debate on China energy bid

In September, two months after China's state-owned CNOOC Ltd made an unexpected $15.1 billion bid for Canadian energy company Nexen Inc, Canada's spy agency told ministers that takeovers by Chinese companies may threaten national security.
The rare warning from the Canadian Security Intelligence Service (CSIS), which was disclosed to Reuters by intelligence sources, did not stop the takeover. That was approved by Canadian authorities earlier this month.
But the intervention and an influential U.S. lawmaker's warning in October that Canadian companies should be careful about doing business with Chinese telecom equipment companies Huawei Technologies Co and ZTE Corp made the approval process for the deal more difficult than initially expected.
"CSIS did not like the Nexen bid and thought it was a bad idea for Chinese firms to be investing in the oil sands. It all played into their greater fears about firms like Huawei," said one person familiar with the agency's concerns. "They do not want to wake up one day and realize a crucial sector of the economy is under the control of foreign interests."
And after listening to the spy service, which usually keeps a low profile, Canada drew up surprisingly tough foreign investment rules that were unveiled when approving the Nexen deal, China's biggest-ever successful foreign takeover. In a clampdown on companies it deems influenced by foreign governments, Canada will block similar purchases in the future.
CSIS has been silent about what it said to Ottawa on the Nexen transaction, and it declined to comment for this story. It didn't specifically recommend the CNOOC deal be blocked, but rather warned more generally about such deals with Chinese entities, the person said.
In reality, the government was unlikely to want to block the CNOOC bid, given a high-profile push by Prime Minister Stephen Harper earlier in the year to boost ties with China, and given that a lot of Nexen's assets are outside Canada, and it has underperformed other energy companies.
SPECIFIC WORRIES
By pushing back aggressively, CSIS ensured that it got foreign investment policy tightened significantly to deter similar such takeovers by companies under the sway of foreign governments.
"I think people at CSIS and elsewhere are going 'Good. That was a very good response by the government'," said Ray Boisvert, a former CSIS assistant director of intelligence, who retired this year after almost three decades at the agency.
"It did reflect some of those deep strategic concerns that practitioners have had about this kind of investment."
Specific worries include theft of Canadian intellectual property, espionage, computer hacking and foreign companies gaining too much influence over crucial sectors of the economy, said the person familiar with the agency's views.
The government could, in theory, nationalize assets if it thought foreign control was problematic. But the pro-business Conservatives would likely find it politically unpalatable to take such a step.
"To be blunt, Canadians have not spent years reducing the ownership of sectors of the economy by our own governments, only to see them bought and controlled by foreign governments instead," Harper said as he announced the new investment rules.
In October, the U.S. House of Representatives' Intelligence Committee urged U.S. firms to stop doing business with Huawei and another Chinese telecom equipment company ZTE on the grounds that Beijing could use products made by the two companies to spy.
The House Intelligence Committee's chairman, Rep. Mike Rogers, a Michigan Republican, urged Canada to take a similar stance, and two days later, the Canadian government indicated it would not let Huawei help build a secure government communications network because of possible security risks.
"The Huawei business caused a lot of political complications for the CNOOC bid," another person familiar with the CNOOC deal said of the U.S. committee's report.
Both Huawei and ZTE have repeatedly denied the allegations in the report, and China's foreign ministry dismissed as "baseless" the idea that security concerns could impede commercial ties.
"We hope that the relevant party can objectively and justly treat Chinese companies' overseas investment and cooperation plans, and stop actions which harm Chinese companies' image and do more to benefit the promotion of bilateral trade and business cooperation," said ministry spokeswoman Hua Chunying.
CLANDESTINE SUPPORT
In its annual report, released in September, CSIS noted risks that included espionage and illegal technology transfers, and said some foreign state-owned enterprises had "pursued opaque agendas or received clandestine intelligence support for their pursuits" in Canada.
The agency did not give details, but added: "When foreign companies with ties to foreign intelligence agencies or hostile governments seek to acquire control over strategic sectors of the Canadian economy, it can represent a threat to Canadian security interests."
CSIS, hit by controversy in 2010 after its head suggested China had too much influence over some Canadian provincial politicians, did not mention any country or firm in its report.
It is unclear how much, if any, influence the United States had on the Canadian authorities' foreign investment policy.
Fen Hampson, head of the global security program at the Centre for International Governance Innovation in Waterloo, Ontario, said he had learned that a U.S. official visited Ottawa in the last few months to discuss mutual concerns about foreign state-owned enterprises.
U.S. Ambassador David Jacobson told Reuters he was not aware of such a meeting, but he noted that officials from the two countries met constantly. "I would be surprised if almost any issue you could think of has not come up in one or more of those conversations," he said. "The United States has not sought to influence Canada's decision with respect to that (CNOOC's bid)... We respect that decision."
The Canadian government did not respond to a request for a comment.
Chinese companies have bought up smaller Canadian energy firms before, but the July 23 bid for Nexen was their first attempt to buy one of the larger players.
Nexen has assets in Canada, the North Sea, Nigeria and the Gulf of Mexico. Technology that Nexen and its partners use for deep sea drilling could interest CNOOC. [ID:nL4N09N3R5]
Asked about the CSIS concerns, a spokeswoman for Industry Minister Christian Paradis replied: "The government has the authority to take any measures it considers necessary to protect national security."
Yet two people close to the deal noted that the Canadian government did not exercise its option to do a separate review of the potential security risks of the CNOOC-Nexen bid, again signaling its concerns were tied to overall Chinese investment rather than to this particular deal.
Under the new rules, which Paradis is responsible for enforcing, foreign state-owned enterprises can no longer buy controlling stakes in assets in the oil sands, the biggest reserve of crude oil outside Saudi Arabia and Venezuela.
Such enterprises can buy minority stakes in the oil sands, or majority stakes in companies outside the oil sands. Companies deemed to have strong government links will be treated with particular caution wherever they propose to invest.
"When it comes to our security and intelligence services, they would rather pull up the drawbridge than let it down," said Hampson, co-author of a report on trade ties between Canada and emerging nations that he discussed with Harper in June.

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Malala asks Pakistan not to rename college for her

MINGORA, Pakistan (AP) — A 15-year-old Pakistani girl who was shot by the Taliban for promoting girls' education has urged Pakistan to reverse a decision to rename a college in her honor to avert militant attacks on students, an official said Friday.
Malala Yousufzai, who became a symbol of youth resistance to the Taliban, made the request after students broke into the school, tore down Malala's pictures and boycotted classes in her home town of Mingora. They said renaming the college endangered their lives.
Senior government official Kamran Rehman said Malala called him from London, where she was being treated for critical wounds from the attack on Oct. 9. The Taliban said it targeted her for promoting education for secular girls.
Malala's case won worldwide recognition for the struggle for women's rights in Pakistan and Taliban have vowed to target her again.
Pakistani Taliban have a strong presence in the country's tribal regions bordering Afghanistan.
A bomb ripped through the office of a local militant commander Maulvi Abbas in Wana, a main town in the South Waziristan tribal region in the northwest, killing him and three of his guards, two intelligence officials said Friday.
Abbas was an associate of Hakimullah Mehsud, the head of Tehrik-e-Taliban Pakistan militant group, they said, speaking on condition of anonymity because they were not authorized to brief reporters.
It was unclear who had planted the bomb. The attack came weeks after a suicide bomber in the same town attacked Maulvi Nazir, a prominent militant commander who is believed to have a nonaggression pact with the army.
Nazir was wounded in the attack, and seven of his men were killed.
Since then there has been tension between followers of Nazir and the Tehrik-e-Taliban Pakistan in the region.

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AP PHOTOS: A photo journey through North Korea

PYONGYANG, North Korea (AP) — My window on North Korea is sometimes, quite literally, a window — of a hotel room, the backseat of a car, a train. Fleeting moments of daily life present themselves suddenly, and they are opportunities to show a side of the country that is entirely at odds with the official portrait of marching troops and tightly coordinated pomp that the Pyongyang leadership presents to the world.
In April, I was part of a group of international journalists that traveled by train to the launch site for this year's first, failed rocket test. We traveled in a spotless train used by the Communist leadership, and I spent the five-hour journey inside my sleeper car looking out the large, clean window at a rural landscape seen by few foreign eyes. The tracks cut across fields where large groups of farmers were at work in clusters. Occasionally, there was a plow drawn by oxen or a brick-red tractor rolling along the gravel roads. On a rocky hilltop above the train tracks, a small boy sprinted and waved at the passing train. Every few hundred yards along the entire route, local officials in drab coats stood guard, their backs to the tracks, until its cargo of foreign reporters had safely passed.
I have made 17 trips into North Korea since 2000, including six since The Associated Press bureau in Pyongyang opened in January 2012. It is an endlessly fascinating and visually surreal place, but it is also one of the hardest countries I have ever photographed. As one of the few international photographers with regular access to the country, I consider it a huge responsibility to show life there as accurately as I can.
That can be a big challenge. Foreigners are almost always accompanied by a government guide — a "minder" in journalistic parlance — who helps facilitate our coverage requests but also monitors nearly everything we do. Despite the official oversight, we try to see and do as much as we can, push the limits, dig as deeply as possible, give an honest view of what we are able to see. Over time, there have been more and more opportunities to leave the showplace capital, Pyongyang, and mingle with the people. But they are usually wary of foreigners and aware that they too are being watched.
This has been a historic year for North Korea, with large-scale dramatic displays to mark important milestones, struggles with food shortages, crippling floods, drought and typhoons, as well as growing evidence that people's lives are changing in small but significant ways. But in a country that carefully choreographs what it shows to the outside world, separating what is real from what is part of the show is often very difficult.
Last spring, as North Korea was preparing for the 100th birthday of its late founder, Kim Il Sung, citizens practiced for weeks, even months, for the large-scale military parade and public folk dancing that was part of the celebration.
One morning, on our way through town, we saw small groups of performers walking home from an early rehearsal. They wore their brightly colored traditional clothing, but covered over with warm winter coats. In their hands were the red bunches of artificial flowers that they shake and wave in honor of country's leaders during mass rallies.
From the van window, I saw a woman standing alone, holding her bouquet as she waited for the bus. It was, to me, a more telling moment than the actual events we would cover a week later, a simple but provocative glimpse into one person's life.
For this project, I used a Hasselblad XPAN, a panoramic-view film camera that is no longer manufactured. Throughout the year, I wore it around my neck and shot several dozen rolls of color negative film in between my normal coverage of news and daily life with my AP-issued digital cameras.
The XPAN is quiet, discrete, manual and simple. Because it has a wide panoramic format, it literally gives me a different view of North Korea. The film also reflects how I feel when I'm in North Korea, wandering among the muted or gritty colors, and the fashions and styles that often seem to come from a past generation.
In my photography, I try to maintain a personal point of view, a critical eye, and shoot with a style that I think of as sometimes-whimsical and sometimes-melancholy. My aim is to open a window for the world on a place that is widely misunderstood and that would otherwise rarely be seen by outsiders.
I hope these images help people to develop their own understanding of the country, one that goes beyond the point-counterpoint presented by Pyongyang and Washington. And maybe they can help create some sort of bridge between the people of North Korea and the rest of the world.

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World stocks fall as US budget negotiations stall

BANGKOK (AP) — Heightened uncertainty about the outcome of budget negotiations in Washington among President Barack Obama, House Speaker John Boehner and other Republican lawmakers drove world stock markets lower Friday.
If a compromise is not in place by Jan. 1, the Bush-era tax cuts will expire and spending cuts will kick in automatically — a one-two punch to the economy that many experts fear will push the U.S. economy back into recession just as it begins to recover from the last one.
European stocks were lower in early trading. Britain's FTSE 100 fell 0.3 percent to 5,938.01. Germany's DAX lost 0.3 percent to 7,646.76. France's CAC-40 was 0.1 percent lower at 3,662.38.
In Asia, Japan's Nikkei 225 index fell 1 to close at 9,940.06. Hong Kong's Hang Seng lost 0.7 percent to 22,506.29. South Korea's Kospi shed 1 percent at 1,980.42. Australia's S&P/ASX 200 fell 0.2 percent to 4,623.60. Benchmarks in Singapore, Indonesia, Thailand and Taiwan also fell. Malaysia and the Philippines rose. Mainland Chinese stocks were mixed.
U.S. stock futures tumbled after rank-and-file Republican lawmakers failed to support an alternative tax plan by House Speaker John Boehner late Thursday in Washington. That plan would have allowed tax rates to rise on households earning $1 million and up. Obama wants the level to be $400,000.
"I think the Republicans will have to yield," said Francis Lun, managing director of Lyncean Holdings in Hong Kong. "Fighting for rich men does not endear you to voters. People earning more than $1 million are considered rich, so it doesn't do the Republican Party any good to really fight for the rights of rich people."
Ironically, the two leaders had significantly narrowed their differences toward a compromise. The latest setback, with Republicans bucking their leader, left precious little time for an agreement to be reached before the "fiscal cliff" of tax increases and spending cuts goes into effect.
Dow Jones industrial futures dropped 1.1 percent to 13,116 and S&P 500 futures lost 1.2 percent to 1,423.90. Analysts cautioned, however, that market swings would be exaggerated because of light trading volumes that typically accompany end-of-year holidays.
"Approaching the weekend and holiday, volumes will likely remain thin, with choppy trading sessions while the 'fiscal cliff' talks will stay in the spotlight," said Kintai Cheung of Credit Agricole CIB in Hong Kong in an email commentary.
Among individual stocks, Mitsubishi Motors Corp. fell 5.8 percent, days after Japan's Transport Ministry issued a warning to the carmaker over the handling of oil leaks in mini-vehicles. Australian surf wear maker Billabong International rose 3.1 percent a day after chief financial officer Craig White left the troubled retailer.
Among mainland Chinese shares, Inner Mongolia Baotou Steel Rare-Earth, China's top rare earth producer, lost 2.2 percent.
Benchmark crude for February delivery fell 86 cents to $89.28 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 15 cents to finish at $90.13 per barrel on the Nymex on Thursday.
In currencies, the euro fell to $1.3209 from $1.3241 late Thursday in New York. The dollar fell to 84.03 yen from 84.42 yen.

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Delhi police say they will protect women on buses

NEW DELHI (AP) — Indian officials announced Friday a broad campaign to protect women in New Delhi following the gang rape and brutal beating of a 23-year-old student on a moving bus in the capital.
Police arrested a boy Thursday night, the fifth person detained in connection with the crime, Delhi Police Commissioner Neeraj Kumar said. Authorities were hunting for the final assailant, he said. Those arrested were being charged with attempted murder in addition to kidnapping and rape.
The government is seeking life sentences for the assailants, Home Secretary R.K. Singh told reporters Friday.
"This is an incident which has shocked all of us," he said.
The attack sparked days of protests across the country from women demanding that authorities take tougher action to protect them against the daily threat of harassment and violence. The government said it is taking steps to address those concerns.
"There will not be any tolerance for crimes against women," Singh said.
Bus drivers in New Delhi will be required to display their identification prominently in the vehicles, buses are now required to remove tinting from their windows and plainclothes police are being placed on buses to protect female passengers, he said. In addition, chartered buses such as the one where the attack occurred will be impounded if they illegally ply for fares on the streets, he said.
Authorities are also cracking down on drunk driving and on loitering gangs of drunken youths, he said.
The victim and a companion were attacked after getting a ride on a chartered bus following a movie Sunday evening. Police said the men on the bus gang-raped her and beat her and her companion with iron rods as the bus drove through the city for hours, even passing through police checkpoints. The assailants eventually stripped the pair and dumped them on the side of a road.
Protesters marched Friday to the presidential mansion and toward Parliament, while theater troupes performed plays about women's safety in a park in central Delhi. A group blocked traffic near the hospital where the victim, who had severe internal injuries, was being treated.
Dr. B.D. Athani, the medical superintendent of Safdarjung Hospital, told reporters the victim was "stable, alert and conscious," but remained on a ventilator.
"We are ready to send the victim to anywhere in the world for treatment," Delhi Chief Minister Sheila Dikshit said. "I have given that assurance to the parents of the girl that we will give every kind of help, no matter what it costs."
Parliamentarian M. Venkaiah Naidu said a special legislative committee would meet next week to take action to protect women.
The government, Singh said, was proposing laws to make it easier for attacked women to come forward, to ensure rape cases are dealt with swiftly in the nation's notoriously slow court system and for increasing the punishment for the crime to a possible death sentence.
"(The) people of Delhi will feel safe moving through the streets of the city, at any point of time, day or night. That is our objective," Singh said.

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Russia's Gazprom to buy Kyrgyz state gas company

BISHKEK, Kyrgyzstan (AP) — Kyrgyzstan's state-owned natural gas company says it is to be sold to Russia's energy monopoly Gazprom, raising hopes of an end to debilitating energy shortages in the impoverished Central Asian nation.
Kyrgyzgaz general director Turgunbek Kulmurzayev said Friday that the sale of the company to the Russian gas giant would be completed by April 1.
Last week, gas and electricity supplies to thousands of Kyrgyz households were suspended.
The crisis was provoked by a shortage in natural gas deliveries from neighboring Kazakhstan, which had to hold onto its own reserves after failing to receive imports from Uzbekistan. Kyrgyzstan, a mountainous nation of 5 million on China's western border, also has substantial unpaid debts to Kazakhstan.
Residents in the capital, Bishkek, and nearby towns were hits by days of gas and power shortages just as temperatures dropped to around minus 20 Celsius (minus 4 Fahrenheit). Failure in gas deliveries pushes people into using more electricity for heating, which in turn leads to blackouts.
The inability of former President Kurmanbek Bakiyev to fulfill basic energy needs led to his violent overthrow in 2010.
The sale of a major national asset to a company owned by a foreign government is likely to raise concerns. Russia has made similar efforts to gain control over important energy infrastructure in other former Soviet republic, such as Ukraine and Belarus.
Kyrgyzgaz's Kulmurzayev traveled to Moscow this week to hold a new round of talks with Gazprom, which offered to buy up the entire company. Kyrgyzgaz is currently 87 percent owned by the state. Another 4.5 percent is held by social investment funds, with the remainder belonging to private investors.
"The Russians now want to buy the entire stock, even from private shareholders," Kulmurzayev said in Bishkek.
Kulmurzayev gave no figure for the sale, but the sum is expected to be nominal due to the company's outstanding debts of around $31 million. He added that Gazprom officials said they plan to invest $650 million over five years on modernizing Kyrgyzstan's gas pipeline network.
"The price for fuel will be substantially cheaper than what is paid to Kazakhstan — $224 per thousand cubic meters — or Uzbekistan — $290 per thousand cubic meters," Kulmurzayev said. "We hope Gazprom will solve the fuel delivery problem in 2013."

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