Obama calls for replacing sequester with balanced approach

WASHINGTON: US President Barack Obama urged Congress on Saturday to replace automatic across-the-board spending cuts known as the sequester with what he called "a balanced approach," which combines "smart" cuts with reforms.

The appeal came the day after the president, complying with the law, signed an order bringing arbitrary cuts worth US$85 billion into force as well as a report by his Office of Management and Budget detailing the cuts to each agency.

Obama has called the sweeping cuts, stemming from a 2011 debt ceiling agreement, "dumb".

The across-the-board cuts were triggered automatically following the failure of efforts to clinch a deal with Republicans on cutting the deficit.

But in his weekly radio and Internet address, he argued there was still time to find a smarter solution to the nation's debt problem.

"I still believe we can and must replace these cuts with a balanced approach - one that combines smart spending cuts with entitlement reform and changes to our tax code that make it more fair for families and businesses without raising anyone's tax rates," Obama said.

He said the budget deficit, now exceeding US$1 trillion, can be reduced without laying off workers or forcing parents and students to pay the price.

"A majority of the American people agree with me on this approach - including a majority of Republicans," the president argued. "We just need Republicans in Congress to catch up with their own party and the rest of the country."

Under the sequester, 800,000 civilian employees of the Defence Department will go on a mandatory furlough one day a week and the navy will trim voyages. The deployment of a second aircraft carrier to the Gulf has been cancelled.

Defence contractors may be forced to lay off workers and some federal health spending could be hit.

Cuts will also be made to special needs education and preschool for less well-off children. National parks could close and wait times could hit four hours at airport customs posts.

But the president insisted that despite public bickering, Republicans and Democrats actually had more in common than they were willing to let on.

"I know there are Republicans in Congress who would actually rather see tax loopholes closed than let these cuts go through," Obama said. "And I know there are Democrats who'd rather do smart entitlement reform than let these cuts go through. There's a caucus of common sense. And I'm going to keep reaching out to them to fix this for good."

- AFP/xq

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6 things I want to do with NFC (Smartphones Unlocked)

S Beam on the Samsung Galaxy S3 makes terrific use of NFC.

(Credit:
Josh Miller/CNET)

Tapping your phone on a console to pay for fries and a Coke is cool. Yet until the stars align, it's not how you'll be using NFC, the near field communications standard that gets devices talking to one another quickly and in a very short range.

Instead of using NFC to replace your credit card, it will increasingly become your passcode, your key. Best of all, it can be used to program one tag with a certain set of instructions that can launch specific actions when read by another NFC-enabled device.

In other words, just one tap of an NFC smartphone on the right tag can launch an app, a map, and share photos and documents.

NFC has been sitting around in phones for years, waiting for people to figure out how to use its charms. This past
CES and MWC, device-makers have begun showing more smartphones, laptops, cameras, and appliances built with an embedded NFC chip.

The problem is, some of these NFC-enabled devices just don't work. There are software and hardware hurdles to overcome, but for the first time since NFC landed on an unsuspecting phone, there's the real possibility for NFC pairing to meld into a way of life.

Here are the ways I'd want use the protocol. Some already exist in nascent or concept-only forms. Others are logical next steps that will take root if and when NFC use becomes much more widespread. And finally, there's the category that's probably flawed, but that's why they call it wish list.

1. Transfer photos, video, and music from any device

I take a lot of photos and screenshots on the different phones that I review. What I would love to do is initiate photo, video, and music transfers with a single tap on the laptop body or through a USB dongle.

While we're at it, let's throw NFC cameras into the mix. I love the idea of an Internet-connected camera, but I don't always want to upload a picture or e-mail it right away, especially if I'm using the photo as part of a larger project.

One tap is all it would take to kick off camera and laptop sharing.

Yes, Bluetooth 4.0 supports contact pairing, so that could be another option. Yet NFC is often used to very quickly initiate more complicated protocols to make Bluetooth sharing possible.

That's how
Android Beam and Samsung's tweaked version, S Beam, are able to share multimedia from phone to phone.

NFC laptops already exist in the HP Envy 14 Spectre and Sony Vaio Tap. The problem is that they don't work very well. CNET editor Dan Ackerman was able to share a URL on the Spectre, but Rich Brown couldn't get beyond the pairing.

On the camera side of things, the Panasonic Lumix DMC-ZS30 and DMC-TS5 will ship later in March with NFC enabled, though CNET hasn't had an opportunity yet to try it out (oh, but we will.)

In addition to quickly transferring photos, NFC with cameras can help you share media directly with someone else's device (like another camera, or maybe TV.) Pair it with a phone and you can also use it as a remote control for the camera shutter button, which is great for self-portraits and group shots.

NFC is also starting to creep up in other appliances, too, like washing machines and other home appliances.

2. Control your
car

There are already some cool, extremely useful proofs of concept out there, including a QNX-running, NFC-enabled Porsche Carrera at CES.

Drop the NFC smartphone on the central console or in a cup holder and a car can not only start charging your phone, it can also rapidly save your contacts to the address book and automatically set up a Bluetooth profile for pairing and playing your music through its speakers.

I'd love to push out map coordinates to your GPS system with the help of NFC.

The guys in CNET's Car Tech division thought up a few other great uses when awarding NFC for most promising future technology.

Keyless car entry through a smart fob is terrifically convenient, but having a redundancy through your phone is a good backup if you need to get into your own car. Tapping the handle could launch a verification screen where you enter a code and start about the business of getting back into the driver's seat.

Similarly, if you live in a city like San Francisco where car-sharing is popular, you (or a car-sharing fleet) can use NFC to hasten unlocking the door for strangers.

3. Replace your ATM card, sometimes

Instead of inserting your bank card into the ATM, what if the tap of your phone (which you probably have in your phone anyway) launches your profile on the ATM screen. You'll still have to verify with your pin in order to see the menu, but the initial NFC handshake would pull up your saved details from the corresponding app on your phone.

I'm not suggesting that ATMs nix card slots altogether, but there's nothing wrong with having two ways to get started with your deposits and withdrawals.

4. Help you shop

There's already some talk of tapping a phone to an NFC tag at malls and supermarkets. I'm also envisioning that tapping strategically-located tags will surface a map of the mall, or list of stores.

In a supermarket, sporting goods store, or DIY home improvement store, NFC could pop up a mobile site that helps you locate items by aisle, track down a salesperson, and surface coupons or deals.

NFC is ideal for this ephemeral type of transaction. Why take the time to download an app with similar features for a store you visit once or twice a year?

MasterCard wants commuters to scan for fare packages with their phones, then bump an NFC sensor before boarding to dock the amount of the ride.

(Credit:
Eric Franklin/CNET)

5. Check you in

Your phone knows your name, your phone number (obviously), and probably where you live. That data is all stored within the address book.

It'd be wonderful to use those details to check yourself into appointments at hospitals, sporting events, concerts, the DMV, and airport kiosks.

Again, I'm not suggesting we dissolve the old-fashioned way, but a quick tap could get the ball rolling with our credentials while we take the next step to verification.

6. Stay on the side of convenience

One of the biggest items on my wish list is for consumer electronics-makers who implement NFC to remember the customer and make their requirements as few as possible.

NFC itself is a standard, yes, but will you only be able to take advantage of the tapping shortcut on your Samsung TV if you have a Samsung phone, or on an LG washing machine in your LG phone?

Will you have to download a specific app and open it every time you want to use NFC with something (thereby making it more of a hassle than a shortcut,) or will smart software authors also launch the app you need and get you started in the right place?

What about NFC tags?

NFC tags or stickers that you can buy already exist and they're great for triggering some kind of response on your phone, like turning on WiFi and Bluetooth when you tag on in your home, or turning on the alarm and shutting off sound when you go to bed.

How to program your own NFC chips

However, I'm not talking about ugly stickers that get bent or lost, or that bear a company logo, like Samsung's TecTiles. What we're talking about here are smoothly integrated and embedded NFC transceivers that become a part of the way we shop, work, drive, and live.

With all the devices that are starting to receive NFC, and all the companies interested in turning a profit from this growing technology, I'm confident we'll see more and more practical and clever implementations soon. There will be kinks to work out, as there is with any new ecosystem, but we're on our way.

What do you want to do with NFC? Share with me in the comments below.

Smartphones Unlocked is a monthly column that dives deep into the inner workings of your trusty smartphone.

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Fla. man presumed dead after sinkhole opens under his bed

SEFFNER, Fla. A man was missing and feared dead early Friday after a large sinkhole opened under the bedroom of a house near Tampa.

Jeff Bush is presumed dead after a sinkhole opened under his bed.

/

CBS

His brother says Jeff Bush screamed for help before he disappeared.

The 36-year-old man's brother, Jeremy Bush, told rescue crews he heard a loud crash around 11 p.m. Thursday, then heard his brother screaming for help.

"When he got there, there was no bedroom left," Hillsborough County Fire Rescue spokeswoman Jessica Damico said. "There was no furniture. All he saw was a piece of the mattress sticking up."

Jeremy Bush called 911 and frantically tried to help his brother Jeff. He said he jumped into the hole and dirt was quickly up to his neck.

"The floor was still giving in and the dirt was still going down, but I didn't care. I wanted to save my brother," Jeremy said. "But I just couldn't do nothing."

An arriving deputy pulled Jeremy Bush from the still-collapsing house.

28 Photos

Sinkholes

"I reached down and was able to actually able to get him by his hand and pull him out of the hole," Hillsborough County Sheriff's Deputy Douglas Duvall said. "The hole was collapsing. At that time, we left the house."

Engineers worked to determine the size of the sinkhole. At the surface, officials estimated it was about 30 feet across. Below the surface, officials believed it was 100 feet wide.

"The entire house is on the sinkhole," Damico said.

Hillsborough County Fire Chief Ron Rogers told a news briefing that extra-sensitive listening devices and cameras were inserted into the sinkhole. "They did not detect any signs of life," he said.

By early Friday, Hillsborough County Fire Rescue officials determined the home had become too unstable to continue rescue efforts.

Neighbors on both sides of the home have been evacuated.

Sinkholes are common in seaside Florida, whose underlying limestone and dolomite can be worn away by water and chemicals, then collapse.

Engineers condemned the house, reports CBS Tampa affiliate WTSP.

From the outside of the small, sky blue house, nothing appeared wrong. There wear no cracks and the only sign something was amiss was the yellow caution tape circling the house.

Hillsborough County Sheriff's Office spokesman Larry McKinnon said authorities asked sinkhole and engineering experts, and they were using equipment to see if the ground can support the weight of heavy machinery needed for the recovery effort.

Jeremy Bush stood in a neighbor's yard across the street from the house Friday and recounted the harrowing collapse.

"He was screaming my name. I could swear I heard him hollering my name to help him," he said of his brother Jeff.

Jeremy Bush's wife and his 2-year-old daughter were also inside the house. "She keeps asking where her Uncle Jeff is," he said. "I lost everything. I work so hard to support my wife and kid and I lost everything."

Janell Wheeler told the Tampa Bay Times newspaper she was inside the house with four other adults and a child when the sinkhole opened.

"It sounded like a car hit my house," she said.

The rest of the family went to a hotel but she stayed behind, sleeping in her car.

"I just want my nephew," she said through tears.

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Obama Signs Order to Begin Sequester Cuts

President Obama and congressional leaders today failed to reach a breakthrough to avert a sweeping package of automatic spending cuts, setting into motion $85 billion of across-the-board belt-tightening that neither had wanted to see.

President Obama officially initiated the cuts with an order to agencies Friday evening.

He had met for just over an hour at the White House Friday morning with Republican leaders House Speaker John Boehner and Senate Minority Leader Mitch McConnell and his Democratic allies, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Vice President Joe Biden.

But the parties emerged from their first face-to-face meeting of the year resigned to see the cuts take hold at midnight.

"This is not a win for anybody," Obama lamented in a statement to reporters after the meeting. "This is a loss for the American people."

READ MORE: 6 Questions (and Answers) About the Sequester

Officials have said the spending reductions immediately take effect Saturday but that the pain from reduced government services and furloughs of tens of thousands of federal employees would be felt gradually in the weeks ahead.

Sequestration Deadline: Obama Meets With Leaders Watch Video

Sequester Countdown: The Reality of Budget Cuts Watch Video

Federal agencies, including Homeland Security, the Pentagon, Internal Revenue Service and the Department of Education, have all prepared to notify employees that they will have to take one unpaid day off per week through the end of the year.

The staffing trims could slow many government services, including airport screenings, air traffic control, and law enforcement investigations and prosecutions. Spending on education programs and health services for low-income families will also get clipped.

"It is absolutely true that this is not going to precipitate the crisis" that would have been caused by the so-called fiscal cliff, Obama said. "But people are going to be hurt. The economy will not grow as quickly as it would have. Unemployment will not go down as quickly as it would have. And there are lives behind that. And it's real."

The sticking point in the debate over the automatic cuts -- known as sequester -- has remained the same between the parties for more than a year since the cuts were first proposed: whether to include more new tax revenue in a broad deficit reduction plan.

The White House insists there must be higher tax revenue, through elimination of tax loopholes and deductions that benefit wealthier Americans and corporations. Republicans seek an approach of spending cuts only, with an emphasis on entitlement programs. It's a deep divide that both sides have proven unable to bridge.

"This discussion about revenue, in my view, is over," Boehner told reporters after the meeting. "It's about taking on the spending problem here in Washington."

Boehner: No New Taxes to Avert Sequester

Boehner says any elimination of tax loopholes or deductions should be part of a broader tax code overhaul aimed at lowering rates overall, not to offset spending cuts in the sequester.

Obama countered today that he's willing to "take on the problem where it exists, on entitlements, and do some things that my own party doesn't like."

But he says Republicans must be willing to eliminate some tax loopholes as part of a deal.

"They refuse to budge on closing a single wasteful loophole to help reduce the deficit," Obama said. "We can and must replace these cuts with a more balanced approach that asks something from everybody."

Can anything more be done by either side to reach a middle ground?

The president today claimed he's done all he can. "I am not a dictator, I'm the president," Obama said.

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Italy's lefti-wing leader suggests loose alliance to end deadlock

ROME: Italian left-wing leader Pier Luigi Bersani on Friday held out the prospect of forming a minority government based on a loose alliance in parliament following inconclusive elections, as Europe puts on pressure for a quick solution.

"I am calling it a government of change, which I would take the responsibility of leading," the Democratic Party leader said in an interview with La Repubblica daily, warning that Italy's "governability (is) at risk".

"Like all governments, it will ask for the confidence of parliament," he said.

But Bersani rejected out of hand the possibility of a grand coalition arrangement with Silvio Berlusconi's centre-right forces, after a new anti-establishment party upset the traditional balance of power between Italy's right and left by winning big in the polls early this week.

Bersani said the government he is proposing would have key objectives, including easing austerity measures, creating jobs, helping the poorest and cutting government costs -- echoing at least some of the demands made by the anti-establishment Five Star Movement.

But since a Democratic Party-led coalition did not manage majorities in both houses of parliament, the new government would depend on the support of other parties in the upper house -- an arrangement that analysts have warned would prove "highly unstable" at a time when Italy is facing an acute economic crisis.

Stefano Folli, editorialist for Il Sole 24 Ore business daily, said it would "hand over the government" to the whims of the populist Five Star Movement.

Most analysts say there will have to be new elections within months to resolve the impasse.

It is unclear whether the Five Star Movement would support Bersani after its leader, former comedian Beppe Grillo, said his movement "is not going to give a vote of confidence to the Democratic Party or to anyone else".

Not everyone in his movement agrees with this rejection, however.

The party captured a quarter of the vote with a campaign that mixed advocacy on environmental causes and grassroots local issues with a crusade against political sleaze, drawing many austerity-weary Italians to its ranks.

The party has spooked Europe with its promise to hold a referendum on the euro and cancel Italy's debts, prompting European leaders to urge Italy to stick to its fiscal commitments and form a government as soon as possible.

A deputy from German Chancellor Angela Merkel's Christian Democratic Union (CDU) called on Friday for Italy to leave the euro if it could not stick to EU rules after its inconclusive election.

"If one can't succeed in persuading the people of a country that they have to stick to the commitments they have themselves signed up to in terms of how the common currency works, then you can't demand new elections from outside, but the country must return to its own currency," said Klaus-Peter Willsch.

Markets were jittery in trading on Friday, with the Milan index plunging 1.58 percent -- the worst performer among major European stock markets.

The technocratic cabinet of outgoing premier Mario Monti, who won praise abroad for his budget discipline and economic reforms but became increasingly unpopular at home, will stay in place until a new government is formed.

A centrist coalition led by Monti came in fourth place, garnering far too little support to be able to cobble a majority in alliance with the left.

Bersani meanwhile ruled out another possibility -- the formation of an emergency coalition with his long-time arch-rival Berlusconi -- saying: "The hypothesis of a grand understanding does not exist and will never exist".

The scandal-tainted Berlusconi on Friday made an appearance at his appeal trial in Milan against a tax fraud conviction linked to his business empire.

A verdict in the case is expected later this month, along with a ruling in another trial in which Berlusconi is a defendant on charges of having sex with an underage prostitute and abuse of office while he was still prime minister.

Italy's new parliament must convene by March 15 at the latest under the rules of the constitution. After parliament meets, formal negotiations can begin with Italian President Giorgio Napolitano on a new government.

Guglielmo Meardi, a professor at Warwick Business School in Britain, said Italy was "used to parliamentary instability... and should stay on the rails until the autumn, when fresh elections could be held."

- AFP/al

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Crave giveaway: Two leather iPad cases from Kavaj

Congrats to Gene W. of Highlands, Texas, for winning a Kanex Sydnee four-port recharging station in last week's giveaway. Is your iPad in need of a new outfit? This week's prize is for you.

We're giving away two sleek
iPad cases from Kavaj, a purveyor of leather gadget jackets started by two former employees of Amazon in Germany. The winner gets one Berlin case in black that fits the
iPad 2,
iPad 3, and iPad 4, and one Berlin case in brown for the iPad Mini. Both slender, supple jackets boast a classic minimalist style and can be reconfigured into two positions -- slightly angled up for interaction, and standing for movies and presentations.

They also have magnetic closures that maintain the iPad's sleep and wake functionality when the case is closed and opened.

Normally, these two cases would cost you $95, but you have the chance to get them for free. How do you go about doing that? There are a few rules, so please read carefully.

• Register as a CNET user. Go to the top of this page and hit the Join CNET link to start the registration process. If you're already registered, there's no need to register again.


• Leave a comment below. You can leave whatever comment you want. If it's funny or insightful, it won't help you win, but we're trying to have fun here, so anything entertaining is appreciated.


• Leave only one comment. You may enter for this specific giveaway only once. If you enter more than one comment, you will be automatically disqualified.
  


• The winner will be chosen randomly. The winner will receive two (2) Kavaj iPad cases, with a retail value of $95.


• If you are chosen, you will be notified via e-mail. The winner must respond within three days of the end of the sweepstakes. If you do not respond within that period, another winner will be chosen.


• Entries can be submitted until Monday, March 4, at 12 p.m. ET.

And here's the disclaimer that our legal department said we had to include (sorry for the caps, but rules are rules):

NO PURCHASE NECESSARY TO ENTER OR WIN. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. YOU HAVE NOT YET WON. MUST BE LEGAL RESIDENT OF ONE OF THE 50 UNITED STATES OR D.C., 18 YEARS OLD OR AGE OF MAJORITY, WHICHEVER IS OLDER IN YOUR STATE OF RESIDENCE AT DATE OF ENTRY INTO SWEEPSTAKES. VOID IN PUERTO RICO, ALL U.S. TERRITORIES AND POSSESSIONS, AND WHERE PROHIBITED BY LAW. Sweepstakes ends at 12 p.m. ET on Monday, March 4, 2013. See official rules for details.

Good luck.

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Two U.S. sailors convicted in Okinawa rape

Updated 4:30 a.m. EST

TOKYO Two U.S. Navy sailors were convicted and sentenced to prison on Friday for raping and robbing a woman on Okinawa in a crime that outraged many on the southern Japanese island.

Seaman Christopher Browning, of Athens, Texas, and Petty Officer 3rd Class Skyler Dozierwalker, of Muskogee, Oklahoma, were found guilty by the Naha District Court of raping and robbing a woman in her 20s in a parking lot in October. Both admitted committing the crime.

Browning, 24, was sentenced to 10 years and Dozierwalker, 23, received nine years.

The case outraged many Okinawans, who have long complained of military-related crime on their island, which hosts thousands of U.S. troops. It also sparked tougher restrictions for all 50,000 U.S. military personnel in Japan, including a curfew and drinking restrictions.

Prosecutors had sought up to 12 years in prison for Browning, who they said also robbed the woman after the rape. Both men admitted their guilt, but the defense had argued that such a long sentence would be excessive.

In handing down the verdict, presiding judge Hideyuki Suzuki said the sentences were in line with the severity of the crimes, which he called "contemptible and violent."

Tensions between U.S. troops and Okinawans are endemic because of islanders' complaints of noise, the danger of accidents and crimes committed by servicemen. The rape in October came amid large protests over the U.S. military's decision to base a new kind of aircraft at an Okinawan Marine facility.

Although most crimes committed by U.S. military personnel in Japan are handled by military courts, they can be prosecuted in Japanese courts in cases that occur off base and are deemed to be particularly serious, such as murder and rape.

The sailors were temporarily deployed to Japan with their unit, the VR-59 reserve air detachment based at Joint Naval Air Station, Fort Worth, Texas. According to police, they arrived in Okinawa two days before the crime on a brief stopover and were staying in an off-base hotel. They were reportedly drinking before the rape took place.

They will serve their sentences in a Japanese prison.

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Sequestration: Surrender is in the Air

The budget ax is about to fall, and there's little lawmakers in Washington are doing to stop it.

Despite a parade of dire warnings from the White House, an $85 billion package of deep automatic spending cuts appears poised to take effect at the stroke of midnight on Friday.

The cuts – known in Washington-speak as the sequester – will hit every federal budget, from defense to education, and even the president's own staff.

On Capitol Hill, Senate Democrats and Republicans each staged votes Thursday aimed at substituting the indiscriminate across-the-board cuts with more sensible ones. Democrats also called for including new tax revenue in the mix. Both measures failed.

Lleaders on both sides publicly conceded that the effort was largely for show, with little chance the opposing chamber would embrace the other's plan. They will discuss their differences with President Obama at the White House on Friday.

"It isn't a plan at all, it's a gimmick," Senate Minority Leader Mitch McConnell, R-Ky., said today of the Democrats' legislation.

"Republicans call the plan flexibility" in how the cuts are made, said Senate Majority Leader Harry Reid. "Let's call it what it is. It is a punt."

The budget crisis is the product of a longstanding failure of Congress and the White House to compromise on plans for deficit reduction. The sequester itself, enacted in late 2011, was intended to be so unpalatable as to help force a deal.

Eric Holder Says Sequester Makes America Less Safe Watch Video

Eric Holder Sounds Sequester Alarm: Exclusive Watch Video

Sequestration: Democrats, Republicans Play Blame Game Watch Video

Republicans and Democrats, however, remain gridlocked over the issue of taxes.

Obama has mandated that any steps to offset the automatic cuts must include new tax revenue through the elimination of loopholes and deductions. House Speaker John Boehner and the GOP insist the approach should be spending cuts-only, modifying the package to make it more reasonable.

"Do we want to close loopholes? We sure do. But if we are going to do tax reform, it should focus on creating jobs, not funding more government," House Speaker John Boehner said, explaining his opposition to Obama's plan.

Boehner, McConnell, Reid and House Minority Leader Nancy Pelosi will huddle with Obama at the White House on Friday for the first face-to-face meeting of the group this year.

"There are no preconditions to a meeting like this," White House spokesman Jay Carney said today. "The immediate purpose of the meeting is to discuss the imminent sequester deadline and to avert it."

Even if the leaders reach a deal, there's almost no chance a compromise could be enacted before the deadline. Lawmakers are expected to recess later today for a long weekend in their districts.

What will be the short-term impact of the automatic cuts?

Officials say it will be a gradual, "rolling impact" with limited visible impact across the country in the first few weeks that the cuts are allowed to stand.

Over the long term, however, the Congressional Budget Office and independent economic analysts have warned sequester could lead to economic contraction and possibly a recession.

"This is going to be a big hit on the economy," Obama said Wednesday night.

"It means that you have fewer customers with money in their pockets ready to buy your goods and services. It means that the global economy will be weaker," he said. "And the worst part of it is, it's entirely unnecessary."

Both sides say that if the cuts take effect, the next best chance for a resolution could come next month when the parties need to enact a new federal budget. Government funding runs out on March 27, raising the specter of a federal shutdown if they still can't reach a deal.

"As we anticipate an across-the-board budget cuts across our land, we still expect to see your goodness prevail, O God, " Senate Chaplain Barry Black prayed on the Senate floor this morning, "and save us from ourselves."

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U.S. will give Syrian rebels medical, food aid, not arms

ROME (Reuters) - The United States will send non-lethal aid directly to Syrian rebels for the first time, Secretary of State John Kerry said on Thursday, disappointing opponents of President Bashar al-Assad who are demanding Western weapons.

More than 70,000 Syrians have been killed in a devastating conflict that began with peaceful anti-Assad protests nearly two years ago. Some 860,000 have fled abroad and several million are displaced within the country or need humanitarian assistance.

Kerry, speaking in Rome after a meeting of the mainly Western and Arab "Friends of Syria" group said his country would more than double its aid to the Syrian civilian opposition, giving it an extra $60 million to help provide security.

The United States would now "extend food and medical supplies to the opposition, including to the Syrian opposition's Supreme Military (Council)," Kerry said.

In their final statement, the Friends of Syria pledged more political and material support to the opposition Syrian National Coalition, a fractious group that has struggled to gain traction inside Syria, especially among disparate rebel forces.

Riad Seif, a coalition leader, said on the eve of the Rome talks that it would demand "qualitative military support", though another coalition official welcomed the shift in the U.S. stance.

"We move forward with a great deal of cautious optimism," said Yasser Tabbara. "We heard today a different kind of discourse," he said, adding the opposition need military and political support.

The modest U.S. policy shift may compound the frustration that had prompted the coalition to declare last week it would boycott the Rome talks. It changed its mind under U.S. pressure.

Many in the coalition say Western reluctance to arm rebels only plays into the hands of Islamist militants now widely seen as the most effective forces in the struggle to topple Assad.

However, a European diplomat held out the prospect of possible Western military support, saying the coalition and its Western and Arab backers would meet in Istanbul next week to discuss military and humanitarian support to the rebels.

MEALS READY TO EAT

Kerry's offer of medical aid and Meals Ready to Eat (MREs), the U.S. army's basic ration, fell far short of rebel demands for sophisticated anti-tank and anti-aircraft weapons to help tip the balance against Assad's mostly Russian-supplied forces.

It also stopped short of providing other forms of non-lethal assistance such as bullet-proof vests, armored personnel vehicles and military training to the insurgents.

The Rome talks were the latest evidence that the United States and its allies have no appetite for military intervention in Syria, after the withdrawal of U.S.-led troops from Iraq and the drawdown under way in Afghanistan.

The final communique called for an immediate halt to "unabated" arms supplies to Damascus by third countries, referring mostly to Assad's allies Russia and Iran.

It also said Syria must immediately stop indiscriminate bombardment of populated areas, which it described as crimes against humanity. NATO officials say Assad's military has fired ballistic missiles within Syria, which the government denies.

Human Rights Watch has reported that at least 171 civilians were killed in four Scud missile strikes last week.

The "Friends of Syria" pledged "more political and material support to the coalition as the sole legitimate representative of the Syrian people and to get more concrete assistance inside Syria", but gave no details on exactly what would be provided.

Kerry said earlier this week he would not leave the Syrian opposition "dangling in the wind" unsure of getting support.

But the White House continues to resist providing weaponry to the rebel forces, arguing there was no way to guarantee the arms might not fall into the hands of militants who might eventually use them against Western or Israeli targets.

"HUGE DEBATE"

U.S. officials have said that the U.S. Defense and State Departments, under former Secretary of Defense Leon Panetta and former Secretary of State Hillary Clinton, privately recommended that the White House arm the rebels but were overruled.

"It's a huge debate inside the administration between those that have to deal with Syria on an everyday basis, the State Department and DoD particularly, and the White House, which ... until now has vetoed any kind of outreach to the armed groups," said Andrew Tabler, senior fellow at the Washington Institute for Near East Policy, a think-tank in the U.S. capital.

The United States says it has already provided more than $50 million in non-lethal assistance such as communications gear and governance training to the civilian opposition.

A source in the Syrian coalition, however, said even the extra $60 million promised by Washington was a pittance compared to what he said was the $40 million a day in humanitarian aid needed for Syrian refugees and internally displaced persons.

The United States has provided some $365 million in humanitarian aid for Syrian refugees in countries such as Turkey, Jordan and Lebanon and for internally displaced people, channeling this money through non-governmental organizations.

More than 40,000 people a week are fleeing Syria and the total number of refugees will likely pass 1 million in less than a month, far sooner than the United Nations had forecast, a senior U.N. official told the Security Council on Wednesday.

U.N. High Commissioner for Refugees António Guterres said his agency had registered 936,000 Syrians across the Middle East and North Africa, nearly 30 times as many as in April last year.

"We expected to have 1.1 million Syrian refugees by June. If things continue to accelerate like this, it will take less than a month to reach that number," he told the 15-member council.

(Writing by Alistair Lyon; Editing by Jon Boyle)

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SingPost sets up S$10m fund to help low-wage employees

SINGAPORE: SingPost is setting up a $10 million "Inclusivity Fund", which will benefit its low-wage workers.

Over 70 per cent of the fund will go to helping the workers cope with the rising cost of living. This will include retention awards and enhancements to their wages.

Part of the fund will also go into training to help them upgrade their skills.

Staff with school-going children can also stand to benefit from bursaries and scholarships.

The fund will be disbursed over five years and benefit some 3,400 workers.

The company will also be investing about S$30 million to enhance its delivery and improve processes.

- CNA/xq

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Ubuntu Touch beats Firefox OS to win best of MWC from CNET

Ubuntu Touch has won the best of Mobile World Congress award from CNET

(Credit:
Sarah Tew/ CNET)

We've seen lots of interesting hardware at Mobile World Congress, and yesterday when the team met to talk about what product should get our best of show award, there were plenty of gadgets in the mix. Asus' Padfone Infinity was in the running, along with its FonePad, the Nokia Lumia 720 and Sony's Xperia Z tablet.

But the nine-strong judging team from our San Francisco, New York and London offices quickly discounted those products. We were much more interested in the product category that has arguably generated more buzz at MWC and is potentially much more disruptive: new mobile operating systems.

The two we zeroed in on, Mozilla's Firefox OS and Canonical's Ubuntu Touch, were hotly debated. Lots was said about the impressive number of carriers and manufacturers
Firefox OS has lined up behind it. But once put to a vote, Ubuntu Touch was the clear winner, with Firefox OS the runner-up.

The team thought that Ubuntu Touch, the
tablet version of which we got our hands-on for the first time at MWC, feels more like the complete package at this point. We liked its slick, elegant interface that makes use of every side of the screen and puts your content and contacts front and centre, minimising the time spent hopping back to a home screen.

Take a look at our hands-on video and picture galleries on this page to see what all the fuss is about, and read our first takes of both Ubuntu Touch and Firefox OS for more details on both.

Ubuntu Touch is a touch of class

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Medicare paid billions to sub-par nursing homes: HHS

SAN FRANCISCO Medicare paid billions in taxpayer dollars to nursing homes nationwide that were not meeting basic requirements to look after their residents, government investigators have found.

The report, released Thursday by the Department of Health and Human Services' inspector general, said Medicare paid about $5.1 billion for patients to stay in skilled nursing facilities that failed to meet federal quality of care rules in 2009, in some cases resulting in dangerous and neglectful conditions.

One out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care requirements laid out by the federal agency that administers Medicare, investigators estimated.

By law, nursing homes need to write up care plans specially tailored for each resident, so doctors, nurses, therapists and all other caregivers are on the same page about how to help residents reach the highest possible levels of physical, mental and psychological well-being.

Not only are residents often going without the crucial help they need, but the government could be spending taxpayer money on facilities that could endanger people's health, the report concluded. The findings come as concerns about health care quality and costs are garnering heightened attention as the Obama administration implements the nation's sweeping health care overhaul.

"These findings raise concerns about what Medicare is paying for," the report said.

Investigators estimate that in one out of five stays, patients' health problems weren't addressed in the care plans, falling far short of government directives. For example, one home made no plans to monitor a patient's use of two anti-psychotic drugs and one depression medication, even though the drugs could have serious side effects.

In other cases, residents got therapy they didn't need, which the report said was in the nursing homes' financial interest because they would be reimbursed at a higher rate by Medicare.

In one example, a patient kept getting physical and occupational therapy even though the care plan said all the health goals had been met, the report said.

The Office of Inspector General's report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks, which investigators said gave them a statistically valid sample of Medicare beneficiaries' experiences in skilled nursing facilities.

That sample represents about 1.1 million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available, according to the review.

Overall, the review raises questions about whether the system is allowing homes to get paid for poor quality services that may be harming residents, investigators said, and recommended that the Centers for Medicare & Medicaid Services tie payments to homes' abilities to meet basic care requirements. The report also recommended that the agency strengthen its regulations and ramp up its oversight. The review did not name individual homes, nor did it estimate the number of patients who had been mistreated, but instead looked at the overall number of stays in which problems arose.

In response, the agency agreed that it should consider tying Medicare reimbursements to homes' provision of good care. CMS also said in written comments that it is reviewing its own regulations to improve enforcement at the homes.

"Medicare has made significant changes to the way we pay providers thanks to the health care law, to reward better quality care," Medicare spokesman Brian Cook said in a statement to The Associated Press. "We are taking steps to make sure these facilities have the resources to improve the quality of their care, and make sure Medicare is paying for the quality of care that beneficiaries are entitled to."

CMS hires state-level agencies to survey the homes and make sure they are complying with federal law, and can require correction plans, deny payment or end a contract with a home if major deficiencies come to light. The agency also said it would follow up on potential enforcement at the homes featured in the report.

Greg Crist, a Washington-based spokeswoman for the American Health Care Association, which represents the largest share of skilled nursing facilities nationwide, said overall, nursing home operators are well regulated and follow federal guidelines, but added that he could not fully comment on the report's conclusions without having had the chance to read it.

"Our members begin every treatment with the individual's personal health needs at the forefront. This is a hands-on process, involving doctors and even family members in an effort to enhance the health outcome of the patient," Crist said.

Virginia Fichera, who has relatives in two nursing homes in New York, said she would welcome a greater push for accountability at skilled nursing facilities.

"Once you're in a nursing home, if things don't go right, you're really a prisoner," said Fichera, a retired professor in Sterling, N.Y. "As a concerned relative, you just want to know the care is good, and if there are problems, why they are happening and when they'll be fixed."

Once residents are ready to go back home or transfer to another facility, federal law also requires that the homes write special plans to make sure patients are safely discharged.

Investigators found the homes didn't always do what was needed to ensure a smooth transition.

In nearly one-third of cases, facilities also did not provide enough information when the patient moved to another setting, the report found.

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Arias Prosecutor Too Combative, Experts Say

He has barked, yelled, been sarcastic and demanded answers from accused murderer Jodi Arias this week.

And in doing so, prosecutor Juan Martinez and his aggressive antics may be turning off the jury he is hoping to convince that Arias killed her ex-boyfriend Travis Alexander in June 2008, experts told ABCNews.com today.

"Martinez is his own worst enemy," Mel McDonald, a prominent Phoenix defense attorney and former judge, told ABC News. "He takes it to the point where it's ad nauseam. You have difficulty recognizing when he's driving the point home because he's always angry and pushy and pacing around the courtroom. He loses the effectiveness, rather than build it up."

"He's like a rabid dog and believes you've got to go to everybody's throat," he said.

"If they convict her and give her death, they do it in spite of Juan, not because of him," McDonald added.

Martinez's needling style was on display again today as he pestered Arias to admit that she willingly participated in kinky sex with Alexander, though she previously testified that she only succumbed to his erotic fantasies to please him.

Arias, now 32, and Alexander, who was 27 at the time of his death, dated for a year and continued to sleep together for another year following their break-up.

Arias drove to his house in Mesa, Ariz., in June 2008, had sex with him, they took nude photos together and she killed him in his shower. She claims it was in self-defense. If convicted, Arias could face the death penalty.

Jodi Arias, Prosecutor Butt Heads in Cross-Examination Watch Video

Jodi Arias Maintains She 'Felt Like a Prostitute' Watch Video

Jodi Arias Admits to Killing Man, Lying to Police Watch Video

Martinez also attempted to point out inconsistencies in her story of the killing, bickering with her over details about her journey from Yreka, Calif., to Mesa, Ariz., including why she borrowed gas cans from an ex-boyfriend, when she allegedly took naps and got lost while driving, and why she spontaneously decided to visit Alexander at his home in Mesa for a sexual liaison.

"I want to know what you're talking about," Arias said to Martinez at one point.

"No, I'm asking you," he yelled.

Later, he bellowed, "Am I asking you if you're telling the truth?"

"I don't know," Arias said, firing back at him. "Are you?"

During three days of cross examining Arias this week, Martinez has spent hours going back and forth with the defendant over word choice, her memory, and her answers to his questions.

"Everyone who takes witness stand for defense is an enemy," McDonald said. "He prides himself on being able to work by rarely referring to his notes, but what he's giving up in that is that there's so much time he wastes on stupid comments. A lot of what I've heard is utterly objectionable."

Martinez's behavior has spurred frequent objections of "witness badgering" from Arias' attorney Kirk Nurmi, who at one point Tuesday stood up in court and appealed to the judge to have a conference with all of the attorneys before questioning continued. Judge Sherry Stephens at one point admonished Martinez and Arias for speaking over one another.

Andy Hill, a former spokesperson for the Phoenix police department, and Steven Pitt, a forensic psychiatrist who has testified as an expert witness at many trials in the Phoenix area, both said that despite his aggressive style, Martinez would likely succeed in obtaining a guilty verdict.

"When it comes to cross examination, one size does not fit all," said Pitt. "But if you set aside the incessant sparring, what the prosecutor I believe is effectively doing is pointing out the various inconsistencies in the defendant's version of events."

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Rehabilitative care innovation can alleviate manpower crunch: govt

SINGAPORE: The government said the use of technology not only accelerates the rehabilitation process of patients, but also helps ease manpower shortages in healthcare.

The latest in "rehab innovations" for those with disabilities are on display at the inaugural Rehab Tech Asia exhibition in Singapore.

The showcase includes a robot arm which allows users who are paralysed in their upper bodies to do daily functions, such as drinking a glass of water.

Laurie Piquet, director of rehabilitation development at KINOVA, said: "When we demonstrate this to users, often the first comments that we have are, 'that's the first time I'm drinking a glass of water by myself'."

The innovation from Canada is compatible with any powered wheelchair and can be controlled by a joystick or through neck movements.

A special wheelchair also improves mobility by making it easier for users to climb stairs and cross pavements.

Other than technology for patients to use, there are also devices for caregivers.

"The Body Up", distributed by Lifeline, is a transfer assist device for bed-ridden patients. The contraption can be used to lift a patient who weighs less than 120kg.

With a growing demand for special needs care, those in the field of rehabilitation said such technology can alleviate problems of manpower shortage.

Dr Kong Keng He, senior consultant at department of rehabilitation medicine at Tan Tock Seng Hospital, said: "It is still very hospital-centric. The patient goes to the hospital to get treatment. I think it will be better off to make it more patient-centric. Deploy this treatment, whether it is rehabilitation, back to the community. And it's always possible for community centres, day rehabilitation centres to acquire these equipment and to have patients to receive their therapy there."

Minister of State for Health Dr Amy Khor agreed, saying the high cost of some technology may be offset by productivity gains in the long run.

She said: "Where it is viable and applicable, I think we should adopt them because it's helpful in terms of improving, accelerating the rehabilitation experience as well as in terms of better use of manpower, improving productivity, and this is something we need to look at. Where it is still costly, I think technology will develop and we will have to continue to monitor this."

With the recent enhancements made to the Senior's Mobility and Enabling Fund, Dr Khor said the subsides should encourage the elderly to go for rehabilitation services within the community.

On how the fund will be disbursed to help home care patients, especially those who are not in touch with intermediate- and long-term care providers, Dr Khor said the Agency for Integrated Care will work with the operators to help spread awareness of the fund. The agency will also work with the grassroots organisations and Community Development Councils to publicise the fund among needy residents.

- CNA/xq

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Huawei Ascend p2 camera test

BARCELONA, Spain--Huawei took the wraps off its latest high-end, super-skinny Android phone, the Ascend P2 on Sunday. It has a 720p 4.7-inch display, a 1.7GHz quad core processor and a 13-megapixel camera, all stuffed into an 8.6mm body. I was given an early hands on with the P2's camera to see how it stacks up against the Nexus 4.

Huawei Ascend P2 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Nexus 4 (click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Shooting outside the Mobile World Congress centre, the P2 was off to an unimpressive start. It didn't have quite the level of control over its exposure that I'd like, resulting in blown-out highlights in the sky. The Nexus wasn't brilliant by any means but it saved some of the blue in the sky at least.

Huawei Ascend P2 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Nexus 4 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Both cameras feature a high dynamic range (HDR) function that combines multiple photos at different exposures to create an even tone overall. That's the idea anyway, not that you'd know it from the P2. The only noticeable difference was that the darker areas were marginally lighter. The skies remained completely washed out. The Nexus, meanwhile, managed to capture a much better overall exposure, with rich skies and satisfying colours.

Huawei Ascend P2

(Credit:
Andrew Hoyle/ CNET)

Nexus 4 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Getting up close with this plant, the P2 put in a better effort with exposure. Colours were fairly rich and the bright spots on the table were kept under control, whereas they were overexposed on the
Nexus 4's attempt.

Huawei Ascend P2 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Nexus 4 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Indoors, the Nexus managed to capture a much warmer, more natural colour tone than the P2. However, the P2's shot was much sharper and suffered less from image noise. Both cameras had their white balance set to automatic, so it would be possible to counter the P2's cold colour tone with some settings tweaking.

Huawei Ascend P2 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Nexus 4 (Click image to enlarge)

(Credit:
Andrew Hoyle/ CNET)

Moving in for some macro shots, the P2 again put in the more impressive effort. It was able to gain a much sharper focus at the same close distance, resulting in much better clarity on the detail of the zip. It still suffered from cold colours but white balance settings should be able to take care of the worst of that.

In general, the P2 put in a fairly decent effort. It didn't seem to have the same control over bright exposures in outdoor scenes and its HDR mode seems basically useless, but its 13-megapixel sensor does a good job of bringing clarity to shots.

My tests were only a brief look at the cameras during MWC, so I'll have to leave the final verdict on the P2's snapper for the full review.

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Two cops, suspect dead in Calif. shootings

Updated 1:50 a.m. EST

SANTA CRUZ, Calif. Two police officers were shot and killed Tuesday while investigating a sexual assault, and a suspect was also fatally shot, authorities said.

Santa Cruz police Chief Kevin Vogel says Sgt. Loren Butch Baker and Detective Elizabeth Butler were gunned down in mid-afternoon Tuesday as they followed up on a sexual assault investigation. He says Baker was a 28-year veteran of the department and Butler had been with the department 10 years. Vogel says Baker was married and the father of two daughters, while Butler leaves behind two young sons.

A suspect, identified as 35-year-old Jeremy Goulet, was shot and killed a short time later while authorities were pursuing the gunman, the Santa Cruz County sheriff's office said.

Residents on the adjoining streets where the shootings occurred received an automatic police call warning them to stay locked inside. About half an hour later, more than a dozen semi-automatic shots echoed down the streets in a brief shootout that killed the suspect.

Witnesses described hearing a "multitude of gunfire" - with 20 or more shots fired during that gun battle between the suspect and law enforcement, reports CBS San Francisco station station KPIX-TV.

Police were going door-to-door in the neighborhood, searching homes, garages, even closets, although the sheriff said authorities didn't know if another suspect remained at large.

Police, sheriff's deputies and FBI agents filled intersections, some with guns drawn, in what is ordinarily a quiet, residential neighborhood in the community about 60 miles south of San Francisco.

A store clerk a few buildings away from the shooting said the barrage of gunfire was "terrifying."

"We ducked. We have big desks, so under the desks we went," said the clerk, who spoke on condition of anonymity and asked that her store not be identified because she feared for her safety.

She said she remained locked in her store hours after the shooting and was still scared.

Two schools were locked down during the shooting. The students were later evacuated by bus to the County Government Center about half a mile away.

As darkness fell, helicopters and light aircraft patrolled above the neighborhood, which is about a mile from downtown Santa Cruz and the Santa Cruz Beach Boardwalk. The campus of University of California, Santa Cruz, is about five miles away.

The city's mayor, Hilary Bryant, said in a statement that the city was shocked over the shootings.

"Tonight we are heartbroken at the loss of two of our finest police officers who were killed in the line of duty, protecting the community we love," the statement said. "This is an exceptionally shocking and sad day for Santa Cruz and our Police Department."

Santa Cruz has faced a recent spate of violence, and community leaders had scheduled a downtown rally Tuesday to speak out against shootings. That and a city council meeting were canceled after teary-eyed city leaders learned of the deaths.

Those shootings include the killing of Pauly Silva, a 32-year-old martial arts instructor who was shot outside a popular downtown bar and restaurant on Feb. 9.

Two days later, a UC Santa Cruz student waiting at a bus stop was shot in the head during a robbery. She is recovering from her injuries.

Then on Feb. 17, a 21-year-old woman was raped and beaten on the UC Santa Cruz campus. Four days later, a Santa Cruz couple fought off two men who came in their home before dawn and threatened them with a sword.

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Inside Organized Retail Crime Raids

We used to call it shoplifting, but these days the foot soldiers of retail crime rings are known as boosters. Police even have an acronym for these operations: ORC, which stands for Organized Retail Crime.

"It's just like a Fortune 500 company," said Sergeant Eric Lee of the Gardena Police Department in Gardena, Calif. "All of this is just organized."

Watch the full story on "Nightline" TONIGHT at 12:35 a.m. ET

Police say big retail stores, from Walgreens to J.C. Penny, are getting hit by highly sophisticated shoplifting networks that steal and resell everything from underwear to razors to milk. According to the National Retail Federation, theft can amount to annual losses as high as a $37 billion for retail businesses.

"Every store in every city has to go through this," Lee said. "They wait until no one's paying attention and they walk out."

Tide detergent is currently a hot target because it is compact, expensive and easy to sell on the streets for profit, police said. The Street name: "liquid gold."

"Sometimes we get rings that just do alcohol," Lee said. "And then we get some that do just meat and seafood."

Investigators say boosters move the loot for cents on the dollar to fencing operations -- the black market resellers of the stolen goods -- which sell the stolen merchandise in plain sight in stores. Boosters, fencers, Mr. Bigs, all of those involved in these shoplifting operations can potentially make millions a year from boosting and re-selling stolen goods.

Craigslist Crackdown: Cops Go After Thieves Watch Video

And Mike Swett is on the case. A former Riverside County sheriff's deputy in Los Angeles, Swett was badly injured in a car wreck and now works as a full-time private investigator on the ORC beat who has worked with Target, Marshalls, T.J. Maxx. Stores hire him to do his own undercover police work, catching thieves before involving local law enforcement.

"Kind of like working a narcotics case, it's like you've got low-level, mid-level and then top dog," Swett said. "We like to go after the top dog and the only way to get to the top dog is mid-level first."

At his command center -- his apartment -- Swett showed off the boxes upon boxes of tapes and photographs he has collected, the fruits of countless silent stake-out hours.

Swett said he has been casing two joints in L.A. for months, both alleged to be mid-level fencing operations. "Nightline" was invited to ride along with him when he sent undercover agents in for a final reconnaissance mission.

At some stores and shopping malls, clerks do little to stop shoplifters and often let them run, which has contributed to the growing fencing operations.

"[The stores] don't want their employees to get injured," Swett said. "So oftentimes they will call the police, but by the time we get there they are already in their car and they are gone."

This leaves professional investigators like Swett to put the pieces together and bust open the gangs to lead over-stretched police departments to the prey.

When raid day arrived, a motorcade of squad cars departed from the Gardena, Calif., police department and pulled up to one fencing operation. Swett said the merchandise being sold was boosted goods.

"There is Victoria's Secret, expensive Victoria's Secret, the gift sets," he said, pointing down a line of tables. "J.C. Penny, Miramax, its real stuff not counterfeit."

He spotted a bottle of Katy Perry brand perfume, which usually retails for around $90 but one seller had it priced at $59.

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Italy faces post-vote stalemate, spooking investors

ROME (Reuters) - The Italian stock market fell and state borrowing costs rose on Tuesday as investors took fright at political deadlock after a stunning election that saw a comedian's protest party lead the poll and no group secure a clear majority in parliament.

"The winner is: Ingovernability" ran the headline in Rome newspaper Il Messaggero, reflecting the stalemate the country would have to confront in the next few weeks as sworn enemies would be forced to work together to form a government.

In a sign of where that might lead, former prime minister Silvio Berlusconi indicated his center-right might be open to a grand coalition with the center-left bloc of Pier Luigi Bersani, which will have a majority in the lower house thanks to a premium of seats given to the largest bloc in the chamber.

Results in the upper house, the Senate, where seats are awarded on a region-by-region basis, indicated the center-left would end up with about 119 seats, compared with 117 for the center-right. But 158 are needed for a majority to govern.

Any coalition administration that may be formed must have a working majority in both houses in order to pass legislation.

Comedian Beppe Grillo's anti-establishment 5-Star Movement won the most votes of any single party, taking 25 percent. He shows no immediate inclination to cooperate with other groups.

Despite talk of a new election, the main established parties seem likely to try to avoid that, fearing even more humiliation.

World financial markets reacted nervously to the prospect of a stalemate in the euro zone's third largest economy with memories still fresh of the crisis that took the 17-member currency bloc to the brink of collapse in 2011.

In a clear sign of worry at the top over what effect the elections could have on the economy, Prime Minister Mario Monti, whose austerity policies were repudiated by voters, called a meeting with the governor of the central bank, the economy minister and the European affairs minister for later on Tuesday.

Other governments in the euro zone sounded uneasy. Allies of German Chancellor Angela Merkel made no secret of disappointment at Monti's debacle and urged Rome to continue with economic reforms Berlin sees as vital to stabilizing the common currency.

France's Socialist finance minister also expressed "worry" at the prospect of legislative deadlock in Italy but said that Italians had rejected austerity and hoped Bersani's center-left could form a stable government to help foster growth in Europe.

INSTABILITY

Fabio Fois, an economist at Barclays bank, said: "Political instability is likely to prevail in the near term and slow the implementation of much needed structural reforms unless a grand coalition among center-left, center-right and center is formed."

Berlusconi, a media magnate whose campaigning all but wiped out Bersani's once commanding opinion poll lead, hinted in a telephone call to a morning television show that he would be open to a deal with the center-left - but not with Monti, the technocrat summoned to replace him in a crisis 15 months ago.

"Italy must be governed," Berlusconi said, adding that he "must reflect" on a possible deal with the center-left. "Everyone must be prepared to make sacrifices," he said of the groups which now have a share of the legislature.

The Milan bourse was down more than four percent and the premium Italy pays over Germany to borrow on 10-year widened to a yield spread of 338.7 basis points, the highest since December 10.

At an auction of six-month Treasury bills, the government's borrowing costs shot up by more than two thirds. Investors demanded a yield of 1.237 percent, the highest since October and compared to just 0.730 percent in a similar sale a month ago.

Berlusconi, who was forced from office in November 2011 as borrowing costs approached levels investors feared would become unsustainable, said he was "not worried" about market reaction to the election and played down the significance of the spread.

The poor showing by Monti's centrist bloc reflected a weariness with austerity that was exploited by both Berlusconi and Grillo; only with the help of center-left allies did Bersani beat 5-Star, by just 125,000 votes, to control the lower house.

The worries immediately went beyond Italy's borders.

"What is crucial now is that a stable functioning government can be built as swiftly as possible," said German Foreign Minister Guido Westerwelle. "This is not only in the interests of Italy but in the interests of all Europe."

The euro skidded to an almost seven-week low against the dollar in Asia on fears about the euro zone's debt crisis. It fell as far as $1.3042, its lowest since January 10.

"NON-PARTY" SURGES TO THE TOP

Commentators said all Grillo's adversaries underestimated the appeal of a grassroots movement that called itself a "non-party", particularly its allure among young Italians who find themselves without jobs and the prospect of a decent future.

The 5-star Movement's score of 25.5 percent in the lower house was just ahead of the 25.4 percent for Bersani's Democratic Party, which ran in a coalition with the leftist SEL party, and it won almost 8.7 million votes overall - more than any other single party.

"The 'non-party' has become the largest party in the country," said Massimo Giannini, commentator for Rome newspaper La Repubblica, of Grillo, who mixes fierce attacks on corruption with policies ranging from clean energy to free Internet.

Grillo's surge in the final weeks of the campaign threw the race open, with hundreds of thousands turning up at his rallies to hear him lay into targets ranging from corrupt politicians and bankers to German Chancellor Angela Merkel.

In just three years, his 5-Star Movement, heavily backed by a frustrated generation of young Italians increasingly shut out from permanent full-time jobs, has grown from a marginal group to one of the most talked about political forces in Europe.

RECESSION

"It's a classic result. Typically Italian," said Roberta Federica, a 36-year-old office worker in Rome. "It means the country is not united. It is an expression of a country that does not work. I knew this would happen."

Italy's borrowing costs have come down in recent months, helped by the promise of European Central Bank support but the election result confirmed fears of many European countries that it would not produce a government strong enough to implement effective reforms.

A long recession and growing disillusionment with mainstream parties fed a bitter public mood that saw more than half of Italian voters back parties that rejected the austerity policies pursued by Monti with the backing of Italy's European partners.

Monti suffered a major setback. His centrist grouping won only 10.6 percent and two of his key centrist allies, Pier Ferdinando Casini and lower house speaker Gianfranco Fini, both of parliamentarians for decades, were booted out.

"It's not that surprising if you consider how much people were let down by politics in its traditional forms," Monti said.

Berlusconi's campaign, mixing sweeping tax cut pledges with relentless attacks on Monti and Merkel, echoed many of the themes pushed by Grillo and underlined the increasingly angry mood of the Italian electorate.

Even if the next government turns away from the tax hikes and spending cuts brought in by Monti, it will struggle to revive an economy that has scarcely grown in two decades.

Monti was widely credited with tightening Italy's public finances and restoring its international credibility after the scandal-plagued Berlusconi, who is currently on trial for having sex with an under-age prostitute.

But Monti struggled to pass the kind of structural reforms needed to improve competitiveness and lay the foundations for a return to economic growth, and a weak center-left government may not find it any easier.

(Additional reporting by Barry Moody, Gavin Jones, Catherine Hornby, Lisa Jucca, Steven Jewkes, Steve Scherer and Naomi O'Leary; Writing by Philip Pullella; Editing by Alastair Macdonald)

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Keppel secures contracts worth S$200m from repeat customers

SINGAPORE : Keppel Offshore & Marine (Keppel O&M), a unit of Keppel Corp, said its subsidiaries have secured two contracts worth a combined value of S$200 million from repeat customers.

In a filing with the Singapore Exchange on Tuesday, Keppel Corp said its Brazil subsidiary, Keppel FELS Brasil, secured a contract with MODEC and Toyo Offshore Production Systems to integrate the topside modules of a Floating Production Storage and Offloading (FPSO) unit.

Integration works for the FPSO will take place from the third quarter of 2014 to the third quarter of 2015.

The project will be carried out at BrasFELS, Keppel FELS Brasil's yard in Rio de Janeiro, Brazil.

In Singapore, Keppel Shipyard won a contract from SBM Offshore to build an internal turret for a newbuild FPSO. Work on the project is scheduled to complete by the third quarter of 2014.

Keppel did not provide a breakdown of individual contract values.

- CNA/ms

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Why you shouldn't expect an all-metal Nokia Lumia anytime soon

Nokia's Lumia 520 is the cheapest Lumia yet in video

BARCELONA, Spain--Part of what makes Nokia phones like the Lumia 920 and new Lumia 720, and Lumia 520 so distinctive are its bright color options, and part of what makes those shades pop is the use of polycarbonate, a type of plastic, as the body material.

Although Nokia hasn't ruled out an all-metal body, speaking with Hans Henrik Lund, Nokia's vice president of product marketing for smart devices at Mobile World Congress, makes me think that we won't be seeing metal Lumias anytime soon.

"The important part for us is that we're obsessed with differentiation." Tells how a 9-year-old boy shouted the name "Lumia" and pointed when Lund snapped a photo of Istanbul's Blue Mosque with his yellow
Lumia 920 smartphone.

That kind of brand recognition is certainly achievable with colored metal, but Lund's point is that creating a recognizable product that stands out from the crowd is a central Nokia goal. In other words, expect a phalanx od polycarbonate Lumias to march down the pipeline in the coming months.

I also suspect that cost considerations have a lot to do with the polycarbonate choice. Nokia is focused on offering like-looking Lumias that span the price point from low to high, a plan that metal might muddle.

In addition, many Lumia phones are already weighty enough on their own without adding a potentially heavier material to the often-larger frame and components.

For all we know, metal elements could be in the works for high-end Lumias further out on the road map, but in the meantime, Nokia lovers would be better off embracing the Lumia line's youthful design.

Read even more smartphone news from Mobile World Congress.

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Iran nuclear talks: Both sides say new ideas ready

ALMATY, Kazakhstan World powers began their fourth round of high-level talks with Iranian officials on Tuesday as negotiators from both sides pledged to offer new ways to break a years-long impasse over Tehran's nuclear program and its feared ability to make atomic weapons in the future.

Few believe the latest attempt to reach compromise will yield any major breakthroughs, and negotiators refused to detail what the new solutions might be. Instead, officials described the latest diplomatic discussions as a way to build confidence with Iran as it steadfastly maintains its right to enrich uranium in the face of harsh international sanctions.

"The offer addresses the international concern on the exclusively peaceful nature of the Iranian nuclear program, but it is also responsive to Iranian ideas," said Michael Mann, spokesman for EU foreign policy chief Catherine Ashton, who is leading the negotiations. "We've put some proposals forward which will hopefully allow Iran to show some flexibility."

Mahmoud Mohammedi, a member of the Iranian delegation, said Tehran also is prepared to make an offer of its own to end the impasse, but refused to provide any details.

The Obama administration is pushing for diplomacy to solve the impasse but has not ruled out the possibility of military intervention in Iran to prevent it from acquiring a nuclear weapon. And Israel has threatened it will use all means to stop Iran from being able to build a bomb, potentially as soon as this summer, raising the specter of a possible Mideast war.

A senior U.S. official at the talks said Monday that some sanctions relief would be part of the offer to Iran but also refused to detail it. The new relief is part of a package the U.S. official said included "substantive changes -- whether you'd call them super-substantial, I'll leave to history." The official acknowledged reports earlier this month that sanctions would be eased to allow Iran's gold trade to progress, but would neither confirm nor deny they are included in the new relief offer, and spoke only on condition of anonymity to discuss the sensitive diplomatic talks more candidly.

In a statement before the talks began Tuesday afternoon, Interfax news agency cited Russia's envoy as saying easing of sanctions is possible only if Iran can assure the world that its nuclear program is for exclusively peaceful purposes.

"There is no certainty that the Iranian nuclear program lacks a military dimension, although there is also no evidence that there is a military dimension," Russian Deputy Foreign Minister Sergei Ryabkov said.

Officials from both sides have set low expectations for a breakthrough in Almaty -- the first time the high-level negotiators have met since last June's meeting in Moscow that threatened to derail the delicate efforts.

The talks are being held in private at a hotel in Almaty, Kazakhstan's largest city, and were deemed so sensitive that reporters were not allowed on the premises Tuesday save, for a small handful of TV cameras and photographers allowed to watch Ashton, who is leading the negotiations, greet Saeed Jalili, secretary of Iran's Supreme National Security Council.

Tehran maintains it is enriching uranium only to make reactor fuel and medical isotopes, and insists it has a right to do so under international law. It has signaled it does not intend to stop, and U.N. nuclear inspectors last week confirmed Iran has begun a major upgrade of its program at the country's main uranium enrichment site.

Negotiators hope easing some of the sanctions will make Tehran more agreeable to halting production of 20 percent enriched uranium -- the highest grade of enrichment that Iran has acknowledged and one that experts say could be turned into warhead grade in a matter of months. The six world powers -- United States, Russia, China, Britain, France and Germany -- also want Iran to suspend enrichment in its underground Fordo nuclear facility, and to ship its stockpile of high-grade uranium out of the country.

Over the last eight months, the international community has imposed harsh economic sanctions on Iran that U.S. officials said have, among other things, cut the nation's daily oil output by 1 million barrels and slashed its employment rate. Western powers have hoped that the Iranian public would suffer under sanctions so badly that the government would feel a moral obligation to slow its nuclear program.

But an analysis released Monday by the International Crisis Group concluded that the web of international sanctions have become so entrenched in Iran's political and economic systems that they cannot be easily lifted piece-by-piece. It found that Tehran's clerical regime has begun adapting its policy to the sanctions, despite their crippling effect on the Iranian public. Doing so, the analysis concluded, has divided the public's anger "between a regime viewed as incompetent and an outside world seen as uncaring."

Iran has been unimpressed with earlier offers by the powers to provide it with medical isotopes and lift sanctions on spare parts for civilian airliners, and new bargaining chips that Tehran sees as minor are likely to be snubbed as well. Iran insists, as a starting point, that world powers must recognize the republic's right to enrich uranium.

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Americans Targeted for Allegedly Running Underage Prostitution in Philippines

Arthur Benjamin is sitting at the edge of a small stage, wearing a lavender Hawaiian shirt and nursing a bottle of San Miguel Light beer. The 6-foot-6 mustachioed Texan lazily watches the half dozen or so girls dancing rather unenergetically around the stage's pole.

"I forgot your gift again, it's in the car," Benjamin says to one of the girls on stage, shouting above the pop music blaring from the speaker system.

The small, dingy bar, which Benjamin says he owns, is called Crow Bar. It's in a rundown part of the picturesque Subic Bay in the western Philippines, about a three hour drive from the capital, Manila. Home for 50 years to a United States naval base, Subic Bay has become synonymous with foreigners looking for sex in the long string of bars that line the main road along the coast.

Watch the full story on "Nightline" TONIGHT at 12:35 a.m. ET

The bars in this area are often packed with older foreign men ogling the young Filipina women available for the night for a "bar fine" of around 1,500 Filipino pesos, or just over $35. Many of the bars are owned and operated by Americans, often former military servicemen who either served on the base or whose ships docked here until the base was shuttered under political pressure in 1992.

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Most of the prostitutes working in the bars are indeed 18 or older. But in the Philippines, just a small scratch to the surface can reveal a layer of young, underage girls who have mostly come from impoverished rural provinces to sell their bodies to help support their families.

Benjamin, 49, is, according to his own statements, one of the countless foreigners who has moved beyond just having sex with underage girls to owning and operating a bar where girls in scantily-clad outfits flaunt their bodies for patrons.

"My wife recently found out that I have this place," he tells an ABC News "Nightline" team, unaware they are journalists and recording the conversation on tiny hidden cameras disguised as shirt buttons.

Benjamin said that a "disgruntled waitress" had written his wife on Facebook, detailing his activities in Subic Bay.

"She sent her this thing saying that I have underage girls who stayed with me, that I [have anal sex with them], I own a bar, I've got other girls that I'm putting through high school, all this other crap," he said.

"All of which is true," he laughed. "However, I have to deny."

He sends a text message summoning his current girlfriend, a petite dark-skinned girl called Jade, who he said is just 16 years old. Benjamin says he bought the bar for her about a year ago and while most still call it Crow Bar, he officially re-named it with her last name.

"She needed a place to stay, I needed a place to do her. I bought a bar for her," he says, explaining that she lives in a house out back by the beach.

"You're not going to find anything like this in the States, not as a guy my age," he said as he looked down at Jade. "Ain't going to happen."

Benjamin is the latest target of Father Shay Cullen, a Catholic priest with a thick Irish brogue and fluency in the local language, Tagalog. Through his non-profit center called Preda, he's been crusading against underage sex trafficking in the Philippines for 40 years.

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ESM Goh calls on S.Korea new leader

SINGAPORE: Emeritus Senior Minister Goh Chok Tong called on the President of the Republic of Korea (ROK) Madam Park Geun-hye in Seoul on Monday evening.

Mr Goh had attended President Park's inauguration ceremony earlier in the day as Singapore's representative.

Mr Goh conveyed the well-wishes of President Tony Tan Keng Yam, Prime Minister Lee Hsien Loong and Mr Lee Kuan Yew on President Park's inauguration and encouraged President Park to visit Singapore at her earliest convenience.

Mr Goh and President Park reaffirmed the excellent relations between Singapore and the ROK and discussed ways to enhance bilateral cooperation.

They noted that the Korea-Singapore Free Trade Agreement (FTA) had heralded a rapid increase in bilateral trade and affirmed their desire to harness the momentum to further advance economic cooperation, including through strengthening the bilateral FTA and enhancing air connectivity.

Mr Goh and President Park also discussed developments in the region.

They noted that Singapore and the ROK shared common strategic perspectives on many international issues and agreed that countries in the region should focus on enhancing cooperation.

This would contribute to stability and growth in the broader Asian region.

- CNA/fa

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