India cuts growth rate forecast

NEW DELHI: India on Monday cut its growth forecast for the current fiscal year to just below six percent, putting Asia's third-largest economy on track for its worst annual performance in a decade.

The finance ministry said "supportive" moves from the central bank would be needed even for the economy to expand at the revised level of 5.7-to-5.9 percent, down from 7.85 percent estimated at the start of the year.

The forecast came a day before the bank was expected to keep the benchmark interest rate on hold as it waits for stubborn inflation to ease, despite mounting pressure for a cut to boost the sluggish economy.

"It should be possible for the economy to improve the overall growth rate of GDP (for the year) to around 5.7 percent to 5.9 percent" from 5.4 percent in the first half, said the Mid-Year Economic Analysis tabled in parliament.

The full-year rate would be far below the near double-digit pace India set before the onset of the global financial crisis.

Finance Minister P. Chidambaram has been urging the central bank to reduce high interest rates to bolster the economy.

But the bank has kept rates steady since April -- when it cut them for the first time in three years -- unlike other developing countries which have lowered borrowing costs to shield their economies from the eurozone crisis.

India's bank has insisted inflation must recede and the government needs to curb its ballooning fiscal deficit -- the widest of all emerging market economies -- before more rate cuts.

Growth in 2011-12 fell to a nine-year low of 6.5 percent hit by high interest rates, struggling overseas economies and sluggish investment caused by concerns about policymaking and corruption.

India's economy has not expanded by less than 6.5 percent since the 2002-2003 financial year.

Economists had already cut their year growth forecasts to mid-five percent or lower.

- AFP/ir

Read More..

Apple: Top 5 events from 2012

Apple spent 2012 much like it did the year before: relentlessly pushing out new products. But that's nothing new.

Instead, tech historians will likely look back at 2012 as one of the company's most transformative years. A time where we saw some of the first pieces of a post-Jobs Apple begin to take shape.

Five key news events marked Apple's 2012, from products to company controversy.

Editor's note: This is the first in a series of stories chronicling the top five events during 2012 for a handful of major technology companies, and technology categories. In the coming days CNET will also recap major events for Google, Facebook, Microsoft, Amazon, and others.

1. Apple v. Samsung
What's more interesting than watching rivals duke it out? When they're also multibillion-dollar-a-year business partners with one another, as was the case between Apple and Samsung.

This legal war began in 2011 when Apple sued the South Korean technology giant. But 2012 was the banner year for the fight as those lawsuits went to trial in a Northern California court.

The three-week-long trial provided hours upon hours of testimony from witnesses on both sides. But what really captured the public's interest were some of the secrets unearthed along the way. That included numerous photos of Apple's iPhone and iPad prototypes as well as internal e-mails, and presentations from both sides. Samsung ended up losing considerably, as the jury sided with Apple in nearly all of its claims.

The two companies went back to court earlier this month to sort out a number of remaining details, including whether Apple can get a permanent sales ban on at least eight of Samsung's devices in the U.S., and whether Samsung can persuade a judge to grant a retrial. There's also a separate trial between the two set for 2014 concerning some of the newer devices.

Apple CEO Tim Cook visits Foxconn's Zhengzhou factory line.

(Credit:
Bowen Liu/Apple Inc. / Bloomberg)

2. Apple in China
Apple's annual supplier responsibility report made waves immediately upon its release in January. For one, the company for the first time released a full list of its suppliers. Apple also joined the Fair Labor Association, who would go on to begin auditing Apple's suppliers and production facilities.

Any positive findings were quickly overshadowed by a series of reports from The New York Times, lambasting the manufacturing side of Apple's business, something near and dear to CEO Tim Cook. While Apple's chief operating officer, Cook is credited with utilizing overseas manufacturers to very quickly produce massive numbers of computers, iPods, and now iPhones and iPads.

The reports, which weren't the first to be critical on the matter, homed in on Apple for poor labor and safety issues in its supplier facilities, as well as for using business practices that prohibited those manufacturers from making improvements. In its own annual supplier report, Apple said it found issues with working hours and compliance with environmental standards.

Cook responded to the situation in a memo to employees (which was leaked), saying the company cared about "every worker in our worldwide supply chain," and that "any suggestion that we don't care is patently false and offensive to us." Cook then made a public appearance at a technology conference put on by Goldman Sachs to reiterate those claims. He followed that with a trip to China, where he was photographed next to workers on the shop floor of Foxconn, donning some of the same protective clothing.

Actor Mike Daisey.

(Credit:
Courtesy Ursa Waz)

Alongside the issue was newfound criticism of one of Apple's staunchest labor critics, Mike Daisey, who penned his one-man show "The Agony and the Ecstasy of Steve Jobs" after traveling to Shenzhen, China. The monologue, which debuted in 2010, highlighted labor issues in Chinese factories, from underage workers to people being poisoned by industrial chemicals while producing Apple's gadgets.

In March, popular radio program This American Life issued a retraction of a show it ran featuring a large portion of Daisey's monologue, followed by an indepth report by host Ira glass and American Public Media's China correspondent, Rob Schmitz, refuting a number of the claims made by Daisey.

Concerns about overseas manufacturing, and Apple's involvement persist. A report from the Students and Scholars Against Corporate Misbehavior said in September that those in a key Foxconn factory in China that produces iPhones still faced "deplorably harsh working conditions," among other violations of Chinese law. Foxconn said the report did not represent the 192,000 employees who worked at the facility. Just three days later, 2,000 workers at a Foxconn factory in a different part of the country erupted in a riot, reportedly over a spat between a worker and a guard. The plant, which employed 79,000 employees at the time, was closed and reopened a day later.

More recently, an investigative report from French TV program Envoyé Spécial claimed there were still some major worker rights issues, including workers living in unfinished buildings without water or electricity. The report made use of hidden-camera footage captured at Foxconn's campus in Zhengzhou.

Scott Forstall, senior VP of iOS Software set to depart Apple next year.

(Credit:
James Martin/CNET)

3. Executive shakeup
While the East Coast of the U.S. was reeling from Hurricane Sandy, Apple quietly announced the departure of two of its top executives, including one who was thought to be a future candidate for CEO.

Apple said iOS chief Scott Forstall would be leaving the company next year, while retail chief John Browett was out immediately. Picking up the remaining responsibilities were top execs Jony Ive, Eddy Cue, and Craig Federighi, who Apple said would stay on with expanded roles. Hardware chief Bob Mansfield also took on a new position heading up a division that focuses on semiconductors and cellular technologies.

The change was the first major shift in top management since the death of Steve Jobs. While Tim Cook promoted several key players to greater positions within the company's executive team shortly after he became CEO, Apple positioned the newer change as something that would improve collaboration.

In the aftermath, what caught everyone's attention were numerous reports painting Forstall as a divisive player among Apple's top brass. A report from The Wall Street Journal, for instance, claimed that Forstall refused to sign Apple's apology over the quality of its new maps software, instead leaving it up to Cook -- something that ultimately led to his firing. Meanwhile, Browett's departure (which was also said to be a firing), left the company searching for a new boss of its retail operations, a role that is expected to be filled sometime next year.

4. Stock highs, lows, and a dividend
Apple's stock soared to new heights in 2012, reaching an all-time high of $702 on September 21, the same day the
iPhone 5 went on sale. But from there, it became a different story. The focus turned from Apple's quick and steady growth to an equally speedy decline, as shares fell nearly 20 percent in the course of a month. Some analyst firms like Merrill Lynch, Jefferies, Evercore, and Nomura Equity Research reduced their price targets, but maintained recommendations to buy.

In March, Apple announced plans to pay a dividend to investors as well as buy back $10 billion worth of its stock, answering what had become a frequent question at investor meetings and quarterly conference calls with analysts about how and when Apple would use some of its massive cash hoard.

All told, the plan involves spending $45 billion over its first three years. But the real takeaway is that it set up Apple to become more attractive to a new group of investors who eye dividends for long-term security over big jumps in the sale price.

Apple executive Phil Schiller showing off the iPad Mini for the first time at the company's event in October.

(Credit:
James Martin/CNET)

5. iPad Mini
To be sure, the
iPad Mini was the product everyone was expecting. Rumors in the months and weeks ahead of its release nailed down every specific detail, right down to the buttons, screen resolution, and price.

So why include it on this list you might be asking? The Mini is Apple's first expansion of the iPad line with a completely new model, and one that promises to get more people in the door with a lower price tag. Some even believe that the Mini will quickly become Apple's main iPad, with more consumers choosing to buy it over the larger, more expensive version.

Estimates from some analysts suggest Apple will sell at least 30 million of the smaller
tablets next year, well over the number of iPads Apple sold during the original product's first year. That makes it a product introduction that's hard to ignore.

Read More..

First funerals set for Conn. shooting victims

Nov. 13, 2012 photo provided by the family via The Washington Post shows Noah Pozner, 6 / AP/Family Photo

NEWTOWN, Conn. The Connecticut Funeral Directors Association has announced that funerals have been scheduled for seven of the Connecticut school shooting victims.

Services for 6-year-olds Noah Pozner and Jack Pinto are being planned for Monday.

The funeral for 6-year-old Jessica Rekos is Tuesday.

On Wednesday, there will be funerals for 7-year-old Daniel Barden and 27-year-old teacher Victoria Soto.

19 Photos

Victims of Conn. school shooting

Services will be held on Thursday for 6-year-old Catherine Hubbard.

A private service has been planned for 6-year-old Dylan Hockley. No date was announced.

A spokesman for the local diocese, Brian Wallace, said it had not been asked yet to provide funerals for gunman Adam Lanza or his mother. Police say he shot her to death before heading to the Sandy Hook Elementary School and going on his rampage.

Read More..

Obama: Nation Faces 'Hard Questions' After Shooting

President Barack Obama said at an interfaith prayer service in this mourning community this evening that the country is "left with some hard questions" if it is to curb a rising trend in gun violence, such as the shooting spree Friday at Newtown's Sandy Hook Elementary School.

After consoling victims' families in classrooms at Newtown High School, the president said he would do everything in his power to "engage" a dialogue with Americans, including law enforcement and mental health professionals, because "we can't tolerate this anymore. These tragedies must end. And to end them we must change."

Mandel Ngan/AFP/Getty Images

President Obama: 'Newtown You Are Not Alone' Watch Video

Sandy Hook Elementary Shooting: Remembering the Victims Watch Video

The president was not specific about what he thought would be necessary and did not even use the word "gun" in his remarks, but his speech was widely perceived as prelude to a call for more regulations and restrictions on the availability of firearms.

The grieving small town hosted the memorial service this evening as the the nation pieces together the circumstances that led to a gunman taking 26 lives Friday at the community's Sandy Hook Elementary School, most first graders.

"Someone once described the joy and anxiety of parenthood as the equivalent of having your heart outside your body all of the time, walking around," he said, speaking of the joys and fears of raising children.

"So it comes as a shock at a certain point when you realize no matter how much you love these kids you can't do it by yourself," he continued. "That this job of protecting kids and teaching them well is something we can only do together, with the help of friends and neighbors, with the help of a community, and the help of a nation."

CLICK HERE for Full Coverage of the Tragedy at Sandy Hook

Read More..

Egyptians narrowly back constitution, say rival camps

CAIRO (Reuters) - Egyptians voted narrowly in favor of a constitution shaped by Islamists but opposed by other groups who fear it will divide the Arab world's biggest nation, officials in rival camps said on Sunday after the first round of a two-stage referendum.

Next week's second round is likely to give another "yes" vote as it includes districts seen as more sympathetic towards Islamists, analysts say, meaning the constitution would be approved.

But a close win would give Islamist President Mohamed Mursi only limited cause for celebration by showing the wide rifts in a country where he needs to build consensus on tough economic reforms.

The Muslim Brotherhood's party, which propelled Mursi to office in a June election, said 56.5 percent backed the text. Official results are not expected till after the next round.

While an opposition official conceded the "yes" camp appeared to have won the first round, the opposition National Salvation Front said it did not acknowledge unofficial results.

It also said in statement that "the voting process in the referendum was marred by many breaches, violations and shortcomings".

During the vote, rights groups reported abuses like polling stations opening late, officials telling people how to vote and bribery. They also criticized widespread religious campaigning which portrayed "no" voters as heretics.

A joint statement by seven human rights groups urged the referendum's organizers "to avoid these mistakes in the second stage of the referendum and to restage the first phase again".

Mursi and his backers say the constitution is vital to move Egypt's democratic transition forward. Opponents say the basic law is too Islamist and tramples on minority rights, including those of Christians who make up 10 percent of the population.

The build-up to Saturday's vote was marred by deadly protests. Demonstrations erupted when Mursi awarded himself extra powers on November 22 and then fast-tracked the constitution through an assembly dominated by his Islamist allies.

However, the vote passed off calmly with long queues in Cairo and several other places, though unofficial tallies indicated turnout was around a third of the 26 million people eligible to vote this time. The vote was staggered because many judges needed to oversee polling staged a boycott in protest.

The opposition had said the vote should not have been held given violent protests in a country watched closely from abroad to see how Islamists, long viewed warily in the West, handle themselves in power.

"It's wrong to have a vote or referendum with the country in the state it is - blood and killings, and no security," said Emad Sobhy, a voter who lives in Cairo. "Holding a referendum with the country as it is cannot give you a proper result."

INCREASINGLY DIVIDED

As polls closed, Islamists attacked the offices of the newspaper of the liberal Wafd party, part of the opposition National Salvation Front coalition that pushed for a "no" vote.

"The referendum was 56.5 percent for the 'yes' vote," a senior official in the Brotherhood's Freedom and Justice Party operations room set up to monitor voting told Reuters.

The Brotherhood and its party had representatives at polling stations across the 10 areas, including Cairo, in this round. The official, who asked not to be identified, said the tally was based on counts from more than 99 percent of polling stations.

"The nation is increasingly divided and the pillars of state are swaying," opposition politician Mohamed ElBaradei wrote on Twitter. "Poverty and illiteracy are fertile grounds for trading with religion. The level of awareness is rising fast."

One opposition official also told Reuters the vote appeared to have gone in favor of Islamists who backed the constitution.

The opposition initially said its exit polls indicated the "no" camp would win comfortably, but officials changed tack during the night. One opposition official in the early hours of Sunday said it would be "very close".

A narrow loss could still hearten leftists, socialists, Christians and more liberal-minded Muslims who make up the disparate opposition camp, which has been beaten in two elections since Hosni Mubarak was overthrown last year.

They were drawn together to oppose what they saw as a power grab by Mursi as he pushed through the constitution. The National Salvation Front includes prominent figures such as ElBaradei, former Arab League chief Amr Moussa and firebrand leftist Hamdeen Sabahy.

If the constitution is approved, a parliamentary election will follow early next year.

DEADLY VIOLENCE

But analysts question whether the opposition group will keep together until a parliamentary election. The Islamist-dominated lower house of parliament elected earlier this year was dissolved based on a court order in June.

Violence in Cairo and other cities has plagued the run-up to the referendum. At least eight people were killed when rival camps clashed during demonstrations outside the presidential palace earlier this month.

In order to pass, the constitution must be approved by more than 50 percent of those casting ballots. There are 51 million eligible voters in the nation of 83 million.

Islamists have been counting on their disciplined ranks of supporters and on Egyptians desperate for an end to turmoil that has hammered the economy and sent Egypt's pound to eight-year lows against the dollar.

The army deployed about 120,000 troops and 6,000 tanks and armored vehicles to protect polling stations and other government buildings. While the military backed Mubarak and his predecessors, it has not intervened in the present crisis.

(Additional reporting by Tamim Elyan, Shaimaa Fayed and Reuters Television; Writing by Edmund Blair and Giles Elgood; Editing by Andrew Heavens)

Read More..

EC supply rate can afford to slow: housing experts

SINGAPORE: Housing experts say the supply rate of executive condominiums (EC) into the housing market can afford to slow down, as some 20 per cent of units launched as part of seven EC projects this year remain unsold.

"I think EC units would have probably hit the ceiling in terms of amount, so I probably think this year we will hit close to about 4,000 being supplied to the market," said Donald Han, special advisor at HSR Property Group.

"We think we can go steady, to a little bit slower in terms of the EC component."

There have been about 10 EC projects this year, with three more to be launched by the end of December.

As of October this year, with the launch of the seven projects, almost 3,000 EC units have been sold. About 800 units are still unsold.

By year's end, with the launch of three more EC projects, more than 2,400 units will be available.

The government also launched six EC land sites in the second half of this year, which would see over 3,000 units being built.

In addition, five land sites slated for launch in the first half of 2013 will bring another 3,100 units on stream.

Experts add with land costs increasing, the prices of EC units have also gone up.

However, they are still cheaper than private condominiums, by about 20 to 30 per cent.

- CNA/xq

Read More..

Google will alter search to end FTC antitrust inquiry, says report

The Federal Trade Commission may bring its two-year antitrust investigation of Google to a close by allowing the company to make voluntary changes to its search business, according to a report.

The search giant is said to be readying an announcement about changes to its use of "snippets," bits of text culled from sites such as Yelp and TripAdvisor and displayed in search results, Politico reports, citing unnamed sources. Yelp and others had charged Google with using their content without permission.

Google will also makes tweaks that will allow for easier porting of search-ad campaigns from Google to rival search services, Politico's sources said.

Politico suggested on Tuesday that the FTC may leave the search-related case to the European Commission, which has mounted an investigation of its own. Reuters reported on Tuesday that some Google competitors, sensing a possible defeat, are taking the case to the Justice Department.

Google and the FTC also look to be close to a settlement in a case involving so-called frand -- or standard essential -- patents owned by Google.

Politico said the FTC declined to comment on today's report about the search tweaks, and it said Google would provide only the following statement: "We continue to work cooperatively with the Federal Trade Commission and are happy to answer any questions they may have."

Read More..

Conn. dad recalls loving, creative 6-year-old

NEWTOWN, Conn. Fighting back tears and struggling to catch his breath, the father of a 6-year-old gunned down in Friday's school shooting in Connecticut told the world about a little girl who loved to draw and was always smiling, and he also reserved surprising words of sympathy for the gunman.

Robbie Parker's daughter Emilie was among the 20 children who died in the one of the worst attacks on schoolchildren in U.S. history. He was one of the first parents to speak publicly about their loss.

"She was beautiful. She was blond. She was always smiling," he said.

Parker spoke to reporters not long after police released the names and ages of the victims, a simple document that told a horrifying story of loss.

He expressed no animosity, said he was not mad and offered sympathy for family of the man who killed 26 people and himself.

To the man's family, he said, "I can't imagine how hard this experience must be for you."

He said he struggled to explain the death to Emilie's two siblings, 3 and 4.

"They seem to get the fact that they have somebody they're going to miss very much," he said.

Parker said his daughter loved to try new things — except for new food. And she was quick to cheer up those in need.

36 Photos

Vigils for Conn. school shooting victims

"She never missed an opportunity to draw a picture or make a card for those she around her," he said.

The world is a better place because Emilie was in it, he said.

"I'm so blessed to be her dad," he said.

Read More..

Conn. Victim's Father Remembers 'Loving' Daughter

(Image credit: Emilie Parker Fund/Facebook)

Emilie Parker, the little girl with the blond hair and bright blue eyes, would have been one of the first to comfort her classmates at Sandy Hook Elementary School, had a gunman’s bullets not claimed her life, her father said.

“My daughter Emilie would be one of the first ones to be standing and giving support to all the victims because that’s the kind of kid she is,” her father, Robbie Parker said as he fought back tears, telling the world about his “bright, creative and loving” daughter who was one of the 20 young victims in the Newtown, Conn., shooting.

“She always had something kind to say about anybody,” her father said.  ”We find comfort reflecting on the incredible person Emilie was and how many lives she was able to touch.”

Emilie, 6, was helping teach her younger sisters to read and make things, and she was the little girls would go to for comfort, he said.

“They looked up to her,” Parker said.

READ: Complete List of Sandy Hook Victims

Parker moved his wife and three daughters to Newtown eight months ago after accepting a job as  a physician’s assistant at Danbury Hospital. He said Emilie, his oldest daughter, seemed to have adjusted well to her new school, and he was very happy with the school, too.

“I love the people at the school. I love Emilie’s teacher and the classmates we were able to get to know,” he said.

      (Image Credit: Alex von Kleydorff/AP Photo)

The family dealt with another tragic loss in October when Emilie lost her grandfather in an accident.

“[This] has been a topic that has been discussed in our family in the past couple of  months,” Parker said. “[My daughters ages 3 and 4] seem to get the idea that there’s somebody who they will miss very much.”

Emilie, a budding artist who carried her markers and pencils everywhere, paid tribute to her grandfather by slipping a special card she had drawn into his casket, Parker said.  It was something she frequently did to lift the spirits of others.

“I can’t count the number of times Emilie would find someone feeling sad or frustrated and would make people a card,” Parker said. “She was an exceptional artist.”

The girl who was remembered as “always willing to try new things, other than food” was learning Portuguese from her father, who speaks the language.

(Image Credit: Emilie Parker Fund/Facebook)

On Friday morning, Emilie woke up before her father left for his job and exchanged a few sentences with him in the language.

“She told me good morning and asked how I was doing,” Parker said. “She said she loved me, I gave her a kiss and I was out the door.”

Parker found out about the shooting while on lockdown in Danbury Hospital and found a television for the latest news.

“I didn’t think it was that big of deal at first,” he said. “With the first reports coming in, it didn’t sound like it was going to be as tragic as it was. That’s kind of what it was like for us.”

CLICK HERE for full coverage of the Sandy Hook shooting.

Parker said he knows that God can’t take away free will and would have been unable to stop the Sandy Hook shooting. While gunman Adam Lanza used his free agency to take innocent lives, Parker said he plans to use his in a positive way.

“I’m not mad because I have my  [free] agency to use this event to do whatever I can to make sure my family and my wife and my daughters are taken care [of],” he said. “And if there’s anything I can do to help to anyone at any time at anywhere, I’m free to do that.”

(Image credit: Emilie Parker Fund/Facebook)

Friday night, hours after he learned of his daughter’s death, Parker said he spoke at his church.

“I don’t know how to get through something like this. My wife and I don’t understand how to process all of this,” he said today. “We find strength in our religion and in our faith and in our family. ”

“It’s a horrific tragedy and I want everyone to know our hearts and prayers go out to them. This includes the family of the shooter. I can’t imagine how hard this experience must be for you and I want you to know our family … love and support goes out to you as well.”

Read More..

Egyptians vote on divisive constitution

CAIRO/ALEXANDRIA (Reuters) - Egyptians queued to vote on Saturday on a constitution promoted by its Islamist backers as the way out of a prolonged political crisis and rejected by opponents as a recipe for further divisions in the Arab world's biggest nation.

Soldiers joined police to secure the referendum after deadly protests during the buildup. Street brawls erupted again on Friday in Alexandria, Egypt's second city, but voting proceeded quietly there, with no reports of violence elsewhere.

President Mohamed Mursi provoked angry demonstrations when he issued a decree last month expanding his powers and then fast-tracked the draft constitution through an assembly dominated by his Muslim Brotherhood group and its allies. At least eight people were killed in clashes last week outside the presidential palace.

The liberal, secular and Christian opposition says the constitution is too Islamist and tramples on minority rights. Mursi's supporters say the charter is needed if progress is to be made towards democracy nearly two years after the fall of military-backed strongman Hosni Mubarak.

"The sheikhs (preachers) told us to say 'yes' and I have read the constitution and I liked it," said Adel Imam, a 53-year-old queuing to vote in a Cairo suburb. "The president's authorities are less than before. He can't be a dictator."

Opposition politician and Nobel Peace Prize laureate Mohamed ElBaradei wrote on Twitter: "Adoption of (a) divisive draft constitution that violates universal values and freedoms is a sure way to institutionalize instability and turmoil."

Official results will not be announced until after a second round of voting next Saturday. But partial results and unofficial tallies are likely to emerge soon after the first round, giving an idea of the overall trend.

In order to pass, the constitution must be approved by more than 50 percent of voters who cast ballots. A little more than half of Egypt's electorate of 51 million are eligible to vote in the first round in Cairo and other cities.

TRANSITION

Christians, making up about 10 percent of Egypt's 83 million people and who have long grumbled of discrimination, were among those waiting at a polling station in Alexandria to oppose the basic law. They fear Islamists, long repressed by Mubarak, will restrict social and other freedoms.

"I voted 'no' to the constitution out of patriotic duty," Michael Nour, a 45-year-old Christian teacher in Alexandria. "The constitution does not represent all Egyptians," he said.

Islamists are counting on their disciplined ranks of supporters and the many Egyptians who may fall into line in a desperate bid to end turmoil that has hammered the economy and sent Egypt's pound to eight-year lows against the dollar.

"I voted 'yes' for stability," said shopkeeper Ahmed Abou Rabu, 39. "I cannot say all the articles of the constitution are perfect but I am voting for a way forward. I don't want Egyptians to go in circles, for ever lost in this transition."

Mursi was among the early voters after polls opened at 8 a.m. (1:00 a.m. Eastern Time). He was shown on television casting his ballot shielded by a screen and then dipping his finger in ink - a measure to prevent people voting twice.

One senior official in the committee overseeing the referendum said Saturday's vote could extend to Sunday if crowds were too heavy to allow everyone cast ballots in one day. Voting for Egyptians abroad that began on Wednesday has been extended to Monday, the state news agency reported.

After weeks of turbulence, there has been limited public campaigning. Opposition politicians and parties, beaten in two elections since Mubarak's overthrow, only announced on Wednesday they backed a "no" vote instead of a boycott.

Flag-waving Islamists gathered peacefully at one of the main mosques on Friday, some shouting "Islam, Islam" and "We've come here to say 'yes' to the constitution".

PALACE SIT-IN

Opposition supporters assembled outside the presidential palace, where there has been a sit-in for days. The walls of the palace, ringed by tanks, are scrawled with anti-Mursi graffiti.

The referendum will be held on two days covering different regions, with the second round on December 22, because there are not enough judges willing to monitor all polling stations after some in the judiciary said they would boycott the vote.

Egyptians are being asked to accept or reject a constitution that must be in place before a parliamentary election can be held next year to replace an Islamist-led parliament dissolved this year. Many hope this will lead Egypt towards stability.

If the constitution is voted down, a new assembly will have to be formed to draft a revised version, a process that could take up to nine months.

The army has deployed about 120,000 troops and 6,000 tanks and armored vehicles to protect polling stations and other government buildings. While the military backed Mubarak and his predecessors, it has not intervened in the present crisis.

(Writing by Edmund Blair and Giles Elgood; Editing by Andrew Heavens)

Read More..