Both sides hint at renewed 'fiscal cliff' talks


WASHINGTON (Reuters) - With little to show after a month of posturing, the White House and Republicans in Congress dropped hints on Thursday that they had resumed low-level private talks on breaking the stalemate over the "fiscal cliff" but refused to divulge details.


A day after a phone conversation between President Barack Obama and John Boehner, the Republican speaker of the House of Representatives, appeared to kick-start communications, both sides used similar language to describe the state of negotiations but imposed a media blackout on developments.


"Lines of communication remain open," White House spokesman Jay Carney told reporters when pressed on whether staff talks were taking place to avoid the steep tax hikes and budget cuts set for the first of next year unless the parties agree on a way to stop them.


Asked the same question, Boehner spokesman Michael Steel also said "lines of communication are open."


The acknowledgement, even without signs of anything approaching a breakthrough, passed for encouraging news after a week of public maneuvering on the fiscal cliff by both sides to gain the maximum political and public relations advantage.


Republicans have worried publicly and privately that they are losing the war of appearances in the battle over the cliff.


On Thursday, another poll showed Republicans may have reason to worry about public perception. A Quinnipiac University survey found respondents trust Obama and Democrats more than Republicans on the cliff talks by a wide margin - 53 percent to 36 percent.


In both public statements and private encounters, Obama has tried to encourage Republicans wavering from the position of the party leadership.


Republican Representative Tom Cole, who last week broke ranks with his party and agreed to accept higher tax rates on the richest Americans, said Obama took him aside at a White House Christmas party on Monday and joked about the criticism Cole had received from Republicans.


"The president pulled me over and he said, 'Cole, come closer, I want to see the bruises,'" Cole told Reuters. "He said, 'Seriously, I will go further on this thing than you guys think. I know we can get something done.'"


While other Republicans have questioned Obama's commitment, Cole said, "I take him at his word," adding: "The best is to get to that discussion as quickly as we can."


'SOLVABLE PROBLEM'


Obama, meanwhile, played to his strengths with the latest in a series of the sort of public events he has used against Republicans in the fiscal cliff fight: a visit with a family in the Virginia suburbs of Washington to illustrate how Republican tax proposals would hurt the middle class.


"The message that I think we all want to send to members of Congress is: this is a solvable problem," Obama said while visiting the home of a couple in Falls Church, Virginia. "We are in the midst of the Christmas season and I think the American people are counting on this getting solved."


Neither side in the showdown would characterize Wednesday's conversation between Boehner and Obama or suggest it opened up new area of compromise.


Obama and Democrats in Congress want the tax cuts set to expire at the end of the year to be extended for taxpayers with incomes below $250,000 a year but not for the wealthiest 2 percent of Americans.


In exchange, the president has said he is willing to consider significant spending cuts wanted by Republicans to "entitlement" programs such as Medicare, the government health insurance plan for seniors.


Republicans have held out for an extension of all the tax cuts, but they have become increasingly divided about whether they can prevail in the face of Obama's firm stance and Republican control of only the House but not the U.S. Senate.


TANGLING OVER DEBT LIMIT


The debt ceiling issue - the same one that provoked a showdown in 2011 that led to a downgrading of the U.S. credit rating - has become a centerpiece of the fiscal cliff debate, thanks in part to Obama's insistence that Congress give him enhanced power to increase the debt limit, which needs to be raised again in the next few months.


"It ought to be done without delay and without drama," Carney, the White House spokesman, said of raising the debt ceiling.


That issue produced a largely partisan procedural scuffle on Thursday in the Senate when Republicans tried to provoke a vote on giving Obama the power to raise the debt ceiling on his own.


Senate Republican leader Mitch McConnell, who had argued that not even Democrats would support giving Obama greater flexibility, tried to prove it by pushing for a vote.


When Senate Democratic leader Harry Reid went ahead and scheduled it, confident he had enough support to win on a straight majority vote, the Republicans backed down, with McConnell demanding that 60 votes be required for passage, more than the Democrats can muster.


No new vote was scheduled. While the measure could come up again, it was dead for the moment.


"Senator McConnell took obstruction to new heights by filibustering his own bill," Reid said in a statement.


Democratic Senator Charles Schumer of New York told reporters that Republicans were losing the argument on raising top tax rates and "are trying to pivot away to other parts of the fiscal cliff in a desperate attempt to assert leverage and change the subject."


The exchange may be a taste of things to come as Congress moves toward the fiscal cliff deadline.


Economists have warned a plunge over the cliff could drive the economy back into a recession. Mark Zandi, chief economist at Moody's Analytics, told the congressional Joint Economic Committee that failure to strike a deal could have serious economic consequences relatively quickly.


"By mid-February you would be doing a lot of damage," Zandi said.


(Additional reporting by Margaret Chadbourn, Rachelle Younglai, David Lawder, Jason Lange; Writing by John Whitesides; Editing by Fred Barbash and Eric Beech)



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South Africa military plane crashes in mountains












JOHANNESBURG (AP) — A South African military aircraft on an unknown mission to an area near the village where former President Nelson Mandela lives crashed in a mountain range, officials said Thursday. It was unclear whether there were any survivors.


The Douglas DC-3 Dakota, a twin-propeller aircraft, had taken off from Pretoria’s Waterkloof Air Force Base on Wednesday night, said Brig. Gen. Xolani Mabanga, a military spokesman. On Thursday morning, soldiers found the wreckage of the airplane in the Drakensberg mountains near Ladysmith in KwaZulu-Natal province, some 340 kilometers (210 miles) southeast of the air base, Mabanga said.












Mabanga said soldiers had been sent to the scene to look for survivors. Mabanga said he did not know what the mission of the aircraft was, though it had planned to land in Mthatha in the country’s Eastern Cape. Siphiwe Dlamini, a Defense Ministry spokesman, declined to immediately comment Thursday morning.


Mthatha is about 30 kilometers (17 miles) north of Qunu, the village where Mandela now lives after retiring from public life. South Africa‘s military remains largely responsible for the former president’s medical care. However, military officials declined to say whether those on board had any part in caring for Mandela.


In November, another South African military flight crash landed at Mthatha, sending several people to the hospital with injuries. However, at that time, the military denied that those on board had anything to do with Mandela’s care.


Mandela, 94, was imprisoned for nearly three decades for his fight against apartheid before becoming the nation’s president in the country’s first fully democratic vote in 1994.


___


Jon Gambrell can be reached at www.twitter.com/jongambrellAP .


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Apple’s shares swallow biggest loss in four years












NEW YORK/SAN FRANCISCO (Reuters) – Apple Inc shares tumbled more than 6 percent on Wednesday, chalking up their biggest single-day loss in four years as fears grow about intensifying competition in the mobile device market.


Investors and analysts blamed the sell-off on a mix of factors, including a forecast by an influential research firm that the iPad maker is continuing to cede ground to rival Google Inc’s Android gadgets, and unconfirmed reports that at least one major stock-clearing house was raising margin requirements on Apple stock trades.












Analysts also cited fears about a hike in the capital gains tax in 2013 in the event that ongoing Washington fiscal negotiations fail, as well as news that Nokia had beat Apple to the punch by striking a deal to sell its flagship Lumia through China Mobile, that country’s largest wireless carrier.


Wednesday’s drop rounded off a bleak 10 weeks for the most valuable U.S. company.


The stock was one of the day’s biggest percentage losers on the S&P 500, shedding $ 35 billion of market value as more than 37 million shares changed hands — blowing past the company’s average daily volume over 50 days of 21 million.


Apple‘s shares, once among the most desirable of portfolio holdings, have headed steadily lower since September on growing uncertainty about the company’s ability to fend off unprecedented competition. This year saw a surge in sales of Amazon.com Inc’s cheaper Kindle Fire and Microsoft Corp’s first foray into the tablet market with its Surface.


Meanwhile, Samsung Electronics continues to chip away at the iPad‘s dominance with its Galaxy line.


The assault on Apple‘s consumer-electronics home turf presents a stiff challenge for CEO Tim Cook, who was elevated shortly before the death of Silicon Valley legend Steve Jobs and is now charged with keeping the world’s largest technology company humming.


“This is not going to be a short-term trend. This is a management test, of how well they can perform without Steve Jobs,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. Referring to Apple‘s new iPad mini, which is only a smaller version of the existing iPad, Battle said the company needs “another home run” for shares to return to levels around $ 700.


“They need another new product that hits it out of the park. Without that, they could get a gradual grind-down in confidence,” he said.


On Wednesday, research firm International Data Corp said Apple most likely shed market share in the tablet computer space in 2012. Its worldwide tablet market share will slip to 53.8 percent in 2012 from 56.3 percent in 2011, while Android products would increase their share to 42.7 percent from 39.8 percent, IDC said.


Concerns that tax rates on dividends and capital gains may rise next year were also cited as contributing to the Apple sell-off.


The stock’s massive market value meant Apple was almost single-handedly responsible for Wednesday’s 1.1 percent decline in the Nasdaq 100 Index.


Apple is still up 33 percent this year, but is down nearly 24 percent from its record high of $ 705.07, hit on September 21. The stock slid more than 6.4 percent on Wednesday to close at $ 538.7923.


BEFUDDLING SLIDE


Some analysts were perplexed at the fall from favor in Apple stock, which has been a staple in almost all growth portfolios. The company is expected to deliver reliably high revenue and earnings expansion for years to come, and one in two tablets sold globally remains an iPad.


It is now gearing up for the introduction of its latest iPhone 5 and iPad mini in international markets. It will begin selling the iPhone 5 in 50 countries in December, including China and South Korea.


Apple stock is significantly more volatile than its earnings and innovation stream,” said Daniel Ernst, analyst with Hudson Square Research. “And yet the wind blows slightly from the south instead of the east one particular morning, and the stock is down 6 percent.”


“It makes no sense. There are lines around the block for their products all around the world,” he added. “No other company has that.”


Separately, Nokia said it will partner with China Mobile, in a sales deal that will give the Finnish company an opportunity to win back Chinese market share from Apple‘s iPhone.


But some analysts continue to believe the dominant carrier in the world’s largest cellular market will eventually embrace the iPhone as well.


China Mobile already carries multiple smartphones from multiple vendors. We continue to expect China Mobile to add the iPhone in the back half of 2013,” Piper Jaffray’s Gene Munster wrote in a research note.


While lines for the latest iPad model appeared lighter than usual when it hit stores in November, Apple said at the time that demand was so strong that it “practically sold out of iPad minis.” It sold 3 million of the new iPads — including the full-sized version — in the first three days on the market.


Some analysts suggested that investors also sold shares of Apple amid uncertainty over ongoing fiscal negotiations in Washington. If no agreement is reached on the issue, higher tax rates on dividends and capital gains are possible in 2013.


Investors who had hoped for a special dividend this year, as many other corporations have announced on expectations of higher tax rates next year, may be disappointed as time is running out.


“If you were expecting a special dividend by year end, that’s less likely to happen because its December 5,” said Colin Gillis, an analyst with BGC Partners.


The fear of higher taxes on capital gains also has prompted some investors to lock in profits now, particularly on a stock like Apple, which has posted gains of at least 25 percent for four consecutive years.


“Depending on what happens with the (U.S. fiscal negotiations), rates could rise next year or they could stay the same,” said Battle, of Performance Trust Capital. “They will not be lower, so if you’re an investor who has seen gains in Apple, it is better to take those gains this year rather than next.”


Tax selling “can take a life of its own,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.


“Some taxable investors take the gains, that creates some negative momentum, institutional investors are heavily weighted the stock and reduce exposure.”


Some market participants also cited reports by media including CNBC, which Reuters could not confirm, that margin requirements on the trading of Apple stock had been raised by at least one clearing firm.


(Additional reporting by Charles Mikolajczak in New York and Doris Frankel in Chicago; Editing by Bernadette Baum, Andrew Hay, Leslie Adler and Ken Wills)


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Sean Bean replaces Brendan Fraser in TNT pilot “Legends”












LOS ANGELES (TheWrap.com) – TNT‘s upcoming pilotLegends” is getting a Stark makeover.


Sean Bean, who played ill-fated Lord of Winterfell Eddard Stark in HBO’s “Game of Thrones,” has signed on to replace Brendan Fraser in TNT’s upcoming pilot “Legends.”












Fraser dropped out of the pilot last month; the show would have marked his first starring turn on a TV series.


Bean will play Martin Odum, a deep-cover operative who has a chameleon-like ability to transform himself into a different person for each mission. The project is based on a book by spy novelist Robert Littell.


“Homeland” duo Howard Gordon and Alexander Cary are executive-producing the pilot, which comes from Fox 21, as are Jeffrey Nachmanoff (“The Day After Tomorrow”) and Jonathan Levin (“Charmed”).


Deadline first reported news of Bean’s “Legends” casting.


TV News Headlines – Yahoo! News


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FDA staff says Zogenix painkiller has abuse risks












(Reuters) – Drug reviewers said a painkiller developed by Zogenix Inc could possibly be abused more than currently available hydrocodone combination products.


Zogenix’s painkiller Zohydro is a single-entity product containing hydrocodone — a narcotic painkiller. Hydrocodone and oxycodone are often-abused drugs.












Combination hydrocodone drugs usually also contain acetaminophen, the active ingredient in common pain products such as Tylenol.


However, since an overdose of acetaminophen can cause liver damage, especially in patients on other acetaminophen medications, there is a requirement for painkillers without acetaminophen.


The reviewers said the expected higher levels of abuse with Zohydro were based on what has been observed for oxycodone products, according to briefing documents released by the U.S. Food and Drug Administration on Wednesday. (http://link.reuters.com/hux44t)


“The abuse ratio for oxycodone combination products was 24 emergency department visits per million tablets dispensed, compared with 85 visits for oxycodone single-entity ER products,” the FDA reviewers said in the documents.


An independent panel of experts will advise the FDA and vote on the drug’s safety, efficacy and approval on Friday.


Zogenix shares were down 6 percent at $ 2.39 in early trade on Wednesday on the Nasdaq.


(Reporting by Esha Dey in Bangalore; Editing by Roshni Menon)


Medications/Drugs News Headlines – Yahoo! News


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U.S software guru John McAfee arrested in Guatemala



Eccentric software tycoon John McAfee, wanted in Belize for questioning in the shooting death of his neighbor, has been arrested in Guatemala for entering the country illegally, his Guatemala attorney told ABC News.



Before McAfee's arrest, he told ABC News in an exclusive interview he would be seeking asylum in Guatemala. McAfee was arrested by the Central American country's immigration police and not the national police, said his attorney, who was confident his client would be released within hours.



"Thank God I am in a place where there is some sanity," said McAfee, 67, before his arrest. "I chose Guatemala carefully."



McAfee said that in Guatemala, the locals aren't surprised when he says the Belizean government is out to kill him.



"Instead of going, 'You're crazy,' they go, 'Yeah, of course they are,'" he said. "It's like, finally, I understand people who understand the system here."



But McAfee added he has not ruled out moving back to the United States, where he made his fortune as the inventor of anti-virus software, and that despite losing much of his fortune he still has more money than he could ever spend.



In his interview with ABC News, a jittery, animated but candid McAfee called the media's representation of him a "nightmare that is about to explode," and said he's prepared to prove his sanity.



McAfee has been on the run from police in Belize since the Nov. 10 murder of his neighbor, fellow American expatriate Greg Faull.



During his three-week journey, said McAfee, he disguised himself as handicapped, dyed his hair seven times and hid in many different places during his three-week journey.



He dismissed accounts of erratic behavior and reports that he had been using the synthetic drug bath salts. He said he had never used the drug, and said statements that he had were part of an elaborate prank.



Investigators said that McAfee was not a suspect in the death of the former developer, who was found shot in the head in his house on the resort island of San Pedro, but that they wanted to question him.



McAfee told ABC News that the poisoning death of his dogs and the murder just hours later of Faull, who had complained about his dogs, was a coincidence.



McAfee has been hiding from police ever since Faull's death -- but Telesforo Guerra, McAfee's lawyer in Guatemala, said the tactic was born out of necessity, not guilt.



"You don't have to believe what the police say," Guerra told ABC News. "Even though they say he is not a suspect they were trying to capture him."



Guerra, who is a former attorney general of Guatemala, said it would take two to three weeks to secure asylum for his client.



According to McAfee, Guerra is also the uncle of McAfee's 20-year-old girlfriend, Samantha. McAfee said the government raided his beachfront home and threatened Samantha's family.



"Fifteen armed soldiers come in and personally kidnap my housekeeper, threaten Sam's father with torture and haul away half a million dollars of my s***," claimed McAfee. "If they're not after me, then why all these raids? There've been eight raids!"



Before his arrest, McAfee said he would hold a press conference on Thursday in Guatemala City to announce his asylum bid. He has offered to answer questions from Belizean law enforcement over the phone, and denied any involvement in Faull's death.



False Report of McAfee Arrest on Mexico Border



Over the weekend, a post on McAfee's blog claimed that he had been detained on the Belizean/Mexico border.



On Monday, a follow-up post said that the "John McAfee" taken into custody was actually a "double" who was carrying a North Korean passport with McAfee's name.



That post claimed that McAfee had already escaped Belize and was on the run with Samantha and two reporters from Vice Magazine.



McAfee did not reveal his location in that post, and a spokesman for Belize's National Security Ministry, Raphael Martinez, told ABC News on Monday that no one by McAfee's name was ever detained at the border and that Belizean security officials believed McAfee was still in their country.



However, a photo posted by Vice magazine on Monday with their article, "We Are With John McAfee Right Now, Suckers," apparently had been taken on an iPhone 4S and had location information embedded in it that revealed the exact coordinates where the photo was taken -- in the Rio Dulce National Park in Guatemala -- as reported by Wired.com.




A subsequent blog post on McAfee's site confirmed that the photo had mistakenly revealed his location, and said that Monday was "chaotic due to the accidental release of my exact co-ordinates by an unseasoned technician at Vice headquarters.



"We made it to safety in spite of this handicap," the post read. "I had to cancel numerous interviews with the press yesterday because of this and I apologize to all of those affected.



"I apologize for all of the misdirections over the past few days . ... It was not easy to exit Belize and required many supporters in many countries."



Belizean authorities said there was no manhunt, and have questioned McAfee's sanity.



"He is extremely paranoid. I would go far as to say even bonkers," said Belize Prime Minister Dean Barrow, circling his index finger.



But now, all the misdirection may be coming to any end. Asked if he feels safe, McAfee told ABC News, "Oh, absolutely. I feel like I've come home."



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Sri Lanka see backlash from Aussie ‘wounded soldiers’












(Reuters) – Sri Lanka captain Mahela Jayawardene has warned his team to be wary of a backlash from Australia in their three-test series after the hosts were stung by their series defeat to South Africa earlier this week.


Australia’s hopes of snatching the Proteas’ top test ranking ended in a crushing 309-run defeat in the third and final test in Perth on Monday, but Jayawardene took little comfort from the home side’s disappointment.












“I see them as wounded soldiers – they could come back stronger against us,” Jayawardene told reporters in Canberra on Wednesday, on the eve of a three-day tour match against a Chairman’s XI side.


“So we just need to make sure we are ready for that and start well.


“We can’t be complacent – we need to make sure we know from ball one we give them a good go at it.”


Sri Lanka have their own problems coming into the first test at Hobart next week, losing their last test at home to New Zealand by 167 runs to level a two-match series 1-1, with key batsmen out of form.


Kumar Sangakkara scored five, nought and 16 in his three innings against New Zealand, but Jayawardene backed the veteran to bounce back in Sri Lanka’s bid to win their first test Down Under.


“I am happy that he went through a lean phase because he’ll be really hungry for runs – that’s Kumar for you,” Jayawardene said of the 35-year-old stalwart.


Jayawardene also said he would weigh up his future as captain after the series, which includes tests in Melbourne and Sydney, after taking on the role for a second time in the wake of Tillakaratne Dilshan’s sudden resignation in January.


“After this, we get a well-deserved four weeks off, after about three years, so it gives me a bit of time to think (about) what I need to do,” said Jayawardene, who captained the team for more than three years in his first stint from 2006.


“We need to groom another leader as well. It’s very important to have that changeover done smoothly while the senior players are still in the side.”


Australia / Antarctica News Headlines – Yahoo! News


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Amazon launches Kindle content service for kids












NEW YORK (AP) — Amazon is launching a subscription service for children’s games, videos and books aimed at getting more kids to use its Kindle Fire tablet devices.


Amazon.com Inc. plans to announce Wednesday that the Kindle FreeTime Unlimited service will be available in the next few weeks as part of an automatic software update.












Amazon said subscribers will have access to “thousands” of pieces of content, though the company did not give a specific number. Kids will be able to watch, play and read any of the content available to them as many times as they want. Parents can set time limits, however.


The service, aimed at kids aged 3 to 8, will cost $ 4.99 per month for one child. It’ll cost $ 2.99 per child for members of Amazon Prime, the company’s premium shipping service. Amazon Prime costs $ 79 per year for free shipping of merchandise purchased in the company’s online store.


Family plans for up to six kids will cost $ 9.99 per month and $ 6.99 for Prime members.


The Kindle already allows for parental controls through its FreeTime service. Parents can set up profiles for up to six children and add time limits to control how long kids can spend reading, watching videos or using the Kindle altogether. With the content subscription service, kids can browse age-appropriate videos, games and books and pick what they want to see. They won’t be shown ads and will be prevented from accessing the Web or social media. Kids also won’t be able to make payments within applications.


Amazon is launching the service as competition heats up in the tablet market among Apple, Barnes & Noble, Microsoft and Samsung. Amazon’s strategy is to offer the Kindle at a relatively low price and make money selling the content.


Offering a subscription service aimed at kids helps set the Kindle apart from its many competitors.


“We hope that our devices are really, really attractive for families,” said Peter Larsen, vice president of Amazon’s Kindle business.


Gadgets News Headlines – Yahoo! News


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Hugh Hefner heads to altar again, with “runaway bride”












LOS ANGELES (Reuters) – Playboy founder Hugh Hefner is headed to the altar again – with the blonde Playmate who ditched him five days before their planned wedding in 2011.


Hefner, 86, and his former “runaway brideCrystal Harris, 26, obtained a marriage license in Beverly Hills on Tuesday, Los Angeles County Recorder spokeswoman Elizabeth Knox said.












Celebrity website TMZ.com said the couple, who reunited earlier this year, are planning a New Year’s Eve wedding.


Harris was Playboy magazine‘s Miss December 2009 and appeared on the July 2011 cover of the adult magazine with a “runaway bride” sticker covering her bottom half.


In what was described at the time only as a “change of heart,” Harris dumped the magazine mogul and left his Playboy Mansion five days before a lavish June 2011 wedding before 300 guests.


This time around, the couple are playing it low-key, staying mum on their busy Twitter accounts with Hefner’s spokeswoman declining to confirm or deny their plans.


Hefner, founder of the Playboy adult entertainment empire, has been married twice before. He and his second wife Kimberley Conrad, also a former Playmate, divorced in 2010 after a lengthy separation. His first marriage to Mildred Williams ended in divorce in 1959. He has two children from each marriage.


(Reporting By Jill Serjeant)


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Casting Light on Astronaut Insomnia: ISS to Get Sleep-Promoting Lightbulbs












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