Stock futures signal early gains

PARIS (Reuters) - Stock futures pointed to a higher open on Wall Street on Tuesday, with futures for the S&P 500 up 0.18 percent, Dow Jones futures up 0.18 percent and Nasdaq 100 futures up 0.23 percent at 5:25 a.m. EDT.


* European shares gained ground on Tuesday morning, helped by data showing German investor confidence unexpectedly rose in December after a sharp fall in the previous month, with Italian shares recovering from the previous day's selloff sparked by Italian Prime Minister Mario Monti's announcement that he plans to resign.


* Monti said on Tuesday he still wanted to influence political debate in whatever role he fills after elections next year, leaving his political future open following speculation he may remain in politics.


* Texas Instruments Inc will be in focus after slightly raising its profit target, excluding a massive restructuring charge, as the company is cutting costs due to macro-economic uncertainties.


* Intel presented new manufacturing technology that it said keeps it on track to launch a new generation of chips for smartphones and tablets as it rushes to catch up with Qualcomm and other rivals in the fast-growing mobile market.


* Industrial machinery maker SPX Corp is in exclusive talks to buy rival Gardner Denver Inc and hopes to finalize a deal by the end of the year, four people familiar with the matter said on Monday.


* Contract manufacturer Flextronics International Ltd said it agreed to take over Motorola Mobility's manufacturing operations in Tianjin, China and Jaguariuna, Brazil.


* Morgan Stanley might seek approval from the Federal Reserve to repurchase shares for the first time in four years, the Wall Street Journal reported, citing people familiar with the firm's thinking.


* A group of Chinese companies, including Industrial and Commercial Bank of China (ICBC), is in talks to buy nearly all of American International Group Inc's aircraft leasing unit for about $5.5 billion, AIG said on Friday.


* On the macro front, investors awaited U.S. international trade for October, due at 8:30 a.m. EDT, the consumer confidence index, due at 10 a.m. EDT, as well as wholesale inventories, due at 10 a.m. EDT.


* U.S. stocks edged higher on Monday as technology shares bounced back after recent weakness and McDonald's posted strong monthly sales.


* The Dow Jones industrial average <.dji> rose 14.75 points, or 0.11 percent, to 13,169.88 at the close. The Standard & Poor's 500 Index <.spx> inched up just 0.48 of a point, or 0.03 percent, to 1,418.55. The Nasdaq Composite Index <.ixic> advanced 8.92 points, or 0.30 percent, to close at 2,986.96.


(Reporting by Blaise Robinson)



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Changing of the Guard: Signals in China of a More Open Economy


Carlos Barria/Reuters


In November, Xi Jinping made his official debut as party chief at the 18th party congress, which military officers attended.







BEIJING — In a strong signal of support for greater market-oriented economic policies, Xi Jinping, the new head of the Communist Party, made a visit over the weekend to the special economic zone of Shenzhen in south China, which has stood as a symbol of the nation’s embrace of a state-led form of capitalism since its growth over the last three decades from a fishing enclave to an industrial metropolis.




The trip was Mr. Xi’s first outside Beijing since becoming party chief on Nov. 15. Mr. Xi visited a private Internet company on Friday and went to Lotus Hill Park on Saturday to lay a wreath at a bronze statue of Deng Xiaoping, the leader who opened the era of economic reforms in 1979, when Shenzhen was designated a special economic zone. Mr. Deng famously later visited the city in 1992 to encourage reviving those economic policies after they had stalled following the violent crackdown on pro-democracy protests in 1989.


“Reform and opening up is a guiding policy that the Communist Party must stick to,” Mr. Xi said, according to Phoenix Television, one of several Hong Kong news organizations that covered the trip. “We must keep to this correct path. We must stay unwavering on the road to a prosperous country and people, and there must be new pioneering.”


In the months before the transition, there were widespread calls, including from people close to Mr. Xi, to adopt more liberal economic policies and even to experiment with greater political openness as a way for the party to maintain its rule. Without much success so far, reformers have long been encouraging the leadership to move toward a more sustainable growth model for China, one that relies more on domestic consumption rather than infrastructure investment and exports, and where state enterprises play less of a role.


Mr. Xi, known as a skillful consensus builder, has kept his ideas carefully veiled throughout his career, but his trip to Shenzhen is the strongest sign yet that he may favor more open policies. In a speech in Beijing on Nov. 29, Mr. Xi spoke of the “Chinese dream” of realizing the nation’s “revival,” which, besides being a call for renewal, also signaled strong nationalist leanings.


Mr. Xi’s father, Xi Zhongxun, was a revered senior official handpicked by Mr. Deng to help shape the new economic policies and oversee the creation of the Shenzhen zone. Mr. Xi’s mother lives in Shenzhen, and he visited her on his trip, according to Hong Kong news reports.


“If he indeed went to Shenzhen, that means he intends to make reform a subject of priority,” said Li Weidong, a liberal political analyst. “That would really be a phenomenon.”


Mr. Li cautioned, though, that the so-called reform policies that followed Mr. Deng’s 1992 southern tour, in his view, “ended up being fake” because China’s boom resulted in widespread corruption and the expansion of state enterprises at the expense of private entrepreneurship.


When Mr. Xi’s predecessor, Hu Jintao, became party chief in 2002, he was seen by many as a potential reformer, but his tenure was marked by conservative policies. For his first trip outside Beijing as party chief, Mr. Hu went in December 2002 to Xibaipo, a hallowed site for the revolution, where he reiterated a speech given by Mao Zedong.


Over the weekend, video footage from Phoenix Television showed a line of minibuses and police cars winding its way through Shenzhen. Mr. Xi and other officials walked outdoors in dark suits. The party’s official news organizations did not immediately report on the trip, but some prominent mainland Chinese news Web sites cited the Hong Kong reports.


Mr. Xi’s early moves as party leader seem aimed at emphasizing national “revival,” a theme he highlighted when he appeared on Nov. 29 with the party’s new seven-man Politburo Standing Committee in a history museum at Tiananmen Square. According to People’s Daily, the party mouthpiece, Mr. Xi stood in front of an exhibition called “The Road to Rejuvenation” and said, “After the 170 or more years of constant struggle since the Opium Wars, the great revival of the Chinese nation enjoys glorious prospects.”


He added: “Now everyone is discussing the Chinese dream, and I believe that realizing the great revival of the Chinese nation is the greatest dream of the Chinese nation in modern times.”


The emphasis on a “Chinese dream” is particular to Mr. Xi, and could prove to be a recurring motif throughout his tenure. The notion of a grand revival — “fu xing” in Mandarin — has been popular with Chinese leaders for at least a century, but Mr. Xi appears to be tapping more deeply into that nationalist vein than his recent predecessors, perhaps recognizing that traditional Communist ideology no longer has popular appeal.


Patrick Zuo contributed research.



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Bradley Cooper & Zoe Saldana Celebrate Silver Linings Playbook in West Hollywood















12/10/2012 at 06:00 AM EST







Zoe Saldana and Bradley Cooper


Jeff Vespa/Getty


Bradley Cooper and Robert De Niro were on hand to celebrate their film Silver Linings Playbook at the Weinstein Company's special event at the Chateau Marmont in West Hollywood on Friday.

At the candle-lit dinner party, De Niro enjoyed a Purity Vodka martini, while Cooper posed for photos with Zoe Saldana. De Niro spent part of the night talking with Mel Gibson and Jane Fonda, who were also in attendance.

Diane Keaton was also at the event, but upon arriving, entered the room "looking a bit puzzled," an onlooker tells PEOPLE.

When asked if she was looking for someone, she responded, "No, I'm looking for a drink," the source adds.

– Kristin Boehm


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Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


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Stock index futures signal lower Wall Street open

LONDON (Reuters) - Stock index futures pointed to a weaker open on Wall Street on Monday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 falling 0.1 to 0.3 percent.


President Barack Obama met with Republican Speaker of the House of Representatives John Boehner on Sunday at the White House to negotiate ways to avoid the "fiscal cliff," according to White House officials and a congressional aide.


American International Group Inc is to sell nearly all of ILFC , the world's second-largest airplane leasing business, to a Chinese consortium for up to $4.8 billion, giving the fastest growing aviation market easier and cheaper access to planes.


The Conference Board releases its employment trend index for November at 1500 GMT (10 a.m. EST). In the previous report, the index read 108.2.


Virgin Atlantic and Delta Air Lines will agree a partnership on transatlantic flights once the U.S. carrier seals a deal to buy Singapore Airlines' 49 percent stake in the British airline, a source close to the UK carrier said.


Ingersoll-Rand Plc is expected to announce as soon as Monday it will spin off its security division, two people familiar with the matter said, as the industrial conglomerate cedes to pressure from activist investor Nelson Peltz to unlock more shareholder value.


Opel, the ailing European brand belonging to General Motor , said it plans to end vehicle production in 2016 at its acutely endangered Bochum plant in Germany, the company said on Monday.


China's exports growth slowed sharply to a much lower than expected 2.9 percent in November, underscoring the global headwinds dragging on an economy showing otherwise solid signs of a pick up in domestic activity.


European shares dropped on Monday, with the FTSEurofirst 300 index <.fteu3> falling 0.3 percent to retreat from an 18-month high hit last week, on renewed worries over Italy's finances after mounting political uncertainty.


Italian Prime Minister Mario Monti's imminent resignation has set off campaigning for an election expected in February, with financial markets on edge at the prospect of a return to an old-style Italian political crisis.


The Dow and the S&P 500 advanced modestly on Friday, though another sell-off in Apple depressed technology shares and kept the Nasdaq negative, overshadowing a sharply better-than-expected jobs report.


The Dow Jones industrial average <.dji> gained 81.09 points, or 0.62 percent, to 13,155.13 at the close. The Standard & Poor's 500 Index <.spx> rose 4.13 points, or 0.29 percent, to 1,418.07. The Nasdaq Composite Index <.ixic> slipped 11.23 points, or 0.38 percent, to close at 2,978.04.


(Reporting by Atul Prakash/editing by Chris Pizzey, London MPG Desk)



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Stalled Adoption Program in Guatemala Leaves Families in Limbo


Rodrigo Cruz for The New York Times


Amy and Rob Carr in Guatemala with Geovany Archilla Rodas, whom they have been trying to adopt since 2007. More Photos »







GUATEMALA CITY — The little boy flies like an airplane through the hotel, his arms outstretched. Then he leaps like a superhero, beaming as the red lights on his new sneakers flash and flicker, while the American couple he is with dissolve in laughter.




He calls them Mamá and Papi. They call him Hijo — Son. He corrects their fledgling Spanish. They teach him English. “Awe-some,” he repeats carefully, eyeing his new shoes.


To outsiders, they look like a family. But Geovany Archilla Rodas, an impish 6-year-old boy with spiky black hair, lives in an orphanage on the outskirts of this capital city. The Americans — Amy and Rob Carr of Reno, Nev. — live a world away. They are the only parents he has ever known.


They have been visiting him every year, usually twice a year, since he was a toddler, flying into this Central American city for a few days at a time to buy him clothes and to read him stories, to wipe his tears and to tickle him until he collapses in giggles at their hotel or in the orphanage.


Yet half a decade after agreeing to adopt him, the Carrs still have no idea when — or if — they will ever take Geovany home.


“There’s this hope in you that doesn’t want to die,” said Mrs. Carr, who arrived here last month with her husband, more determined than ever to cut through the bureaucracy. “In my heart, he’s my son.”


The Carrs are among the 4,000 Americans who found themselves stuck in limbo when Guatemala shut down its international adoption program in January 2008 amid mounting evidence of corruption and child trafficking. Officials here and in Washington promised at the time to process the remaining cases expeditiously.


But officials and prospective parents say that bureaucratic delays, lengthy investigations and casework hobbled by shortages of staff and resources have left hundreds of children stranded in institutions for years. Today, 150 children — including Geovany — are still waiting in orphanages and foster homes here while the Guatemalan authorities weigh whether to approve their adoptions to families in the United States.


Stalled adoptions are not unique to Guatemala. Concerns about fraud, including allegations of kidnappings and baby selling, have held up American adoptions for months, and sometimes years, from Ethiopia, Kyrgyzstan, Vietnam and Haiti. The State Department currently refuses to approve adoptions from Cambodia and Vietnam to pressure those countries to install safeguards so that children with biological relatives who can care for them are not shipped overseas, officials say.


But the problem of delayed adoptions is particularly acute in Guatemala, a country of about 14 million people, which in 2007 ranked second only to China in the number of children sent to the United States.


As officials here have spent months, and then years, trying to distinguish legitimate adoptions from fraudulent ones, many hopeful couples who had painted nurseries, hosted baby showers and bought brand new cribs began to despair as the infants they had hoped to adopt took their first steps and spoke their first words without them.


Faced with a seemingly endless process, scores of prospective parents quietly abandoned their efforts to adopt the children they once considered their own, officials say.


Guatemalan officials said they never intended for the children to remain institutionalized for so long. They say they have had to thoroughly investigate the cases, some of which are complicated by inconsistencies, false documents and questionable stories, to ensure that the children were not bought or stolen from impoverished rural women.


“These are very vulnerable people, who can be easily taken advantage of,” said Elizabeth Orrego de Llerena, president of the board of directors of the National Adoption Council, which is processing the adoption cases once they have been cleared by the child welfare investigative branch. “At times, they have not had the opportunity to make a complaint or to seek solutions.”


Ms. Orrego de Llerena said that the investigations, which typically include searches for biological relatives, were necessary to ensure that children were given up voluntarily.


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Michelle Branch's Daughter's Dream Job Is For the Birds - Literally




Celebrity Baby Blog





12/03/2012 at 02:00 PM ET



Prince William and Kate Expecting First Child
Sthanlee B. Mirador/Shooting Star


It seems as if Michelle Branch‘s daughter won’t be following in her musical footsteps any time soon.


While the Grammy Award winning singer/songwriter and her husband, bass player Teddy Landau, are no strangers to the stage, 7-year-old Owen Isabelle has found her niche in nature.


“I think because my husband and I are both musicians, she kind of feels like she has to do something a little bit more serious than her mom and dad,” the Cook Taste Eat host, 29, tells PEOPLE.


“Since she was 3 or 4 years old, she was always into science and dinosaurs and watching nature shows.”


In particular, all-things aviary has struck a chord with the little girl, who has already happily declared her future dream job.

“She’s obsessed with birds. She’s been begging to have a pet bird, which I will not allow,” saya Branch. “[Owen] claims she’s going to be an ornithologist when she grows up. Literally, it’s birds 24/7 — every book she wants is birds, stickers, drawings, clothes, everything.”


And as sure as she is of her pending career plans, Owen is just as confident in her political views. Happy to reveal who would have earned her support, the little girl has no qualms about divulging the deciding factor during the recent Presidential election.


“Around election time she said, ‘You know Mom, if I could vote, I would vote for Barack Obama.’ And I said, ‘Oh, really, that’s so interesting. Why?’” Branch recalls.


“And she said, ‘Well, remember that one time we got to go to the White House and meet him? I don’t vote for strangers.’”


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Wall Street Week Ahead: "Cliff" worries may drive tax selling


NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.


The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.


Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.


Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.


"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."


Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.


The rush to avoid higher taxes on portfolio gains could cause additional weakness.


The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.


A PAIN PILL FROM THE FED?


Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.


Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.


"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.


"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.


MORE VOLUME AND VOLATILITY


Volume could increase as investors try to shift positions before year end, some analysts said.


While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.


Volatility could pick up as well, and some of that is already being seen in Apple's stock.


"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.


Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.


"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.


While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.


To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.


Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.


"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)



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India Ink: Newswallah: Bharat Edition

Jammu and Kashmir: In the legislative council elections held this week for four seats under the quota for panchayats, or village councils — the first such polls in 38 years — the governing coalition of National Conference and Indian National Congress won, Kashmir Live reported. The voters comprised 33,540 elected village council members and heads from the Jammu region and Kashmir Valley, according to an IANS report on the IBNLive Web site.

Arunachal Pradesh: Three years after the central government released three million rupees to the state to implement the national health insurance plan known as the Rashtriya Swastha Bima Yojana, potential  beneficiaries are still waiting, according to a PTI report in The Hindu Business Line. State officials said a memorandum of agreement between the state and Royal Sundaram, the insurance company chosen to implement the program, had yet to be signed, according to the report.

Manipur: The Supreme Court of India said Thursday that a special investigating team should be established to look into so-called encounter killings in the state, according to a PTI report carried by IBNLive. The court was responding to litigation filed by a group representing the families of alleged victims of “fake encounters” carried out by security forces.  

Rajasthan: A program to improve broadband connectivity in rural areas has begun in Arain town in Ajmer district, The Times of India reported. The goal is to give 250,000 elected village councils across the country broadband Internet connections within a year. The Universal Service Obligation Fund of India, funded by a percentage of all telecom companies’ revenue, is financing the project.  

Maharashtra: In a recent report, India’s comptroller and auditor general chastised the armed forces authorities in Pune for failing to prevent the unauthorised use of defense assets, Daily News & Analysis reported. According to the report, the Army Public School, which is run by the Army Welfare Education Society, was using eight military-owned buildings in violation of Ministry of Defense guidelines.

Andhra Pradesh: At the urging of Congress lawmakers pushing to establish Telangana as a separate state, the governing United Progressive Alliance on Wednesday agreed to hold an all-party meeting to discuss the controversial bid, according to a report in The New Indian Express.  Legislators from Telangana, which is a region in Andhra Pradesh, said the meeting would be held on Dec. 28.

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Internet governance talks in jeopardy as Arab states, Russia ally












SAN FRANCISCO (Reuters) – A landmark attempt to set global rules for overseeing the Internet threatened to fall apart on Friday as a rift pitting the United States and some Western countries against the rest of the world widened, participants in the talks said.


A 12-day conference of the International Telecommunications Union, taking place in Dubai, is supposed to result in the adoption of a new international treaty governing trans-border communications.












But in a critical session at the midpoint of the conference on Friday, delegates refused to adopt a U.S.-Canadian proposal to limit the treaty’s scope to traditional communications carriers and exclude Internet companies such as Google, the ITU said on its website.


Further complicating the negotiations was what a U.S. official at the talks called the “surprise” announcement of an accord among some Arab states, Russia and other countries to pursue treaty amendments that are expected to include Internet provisions unacceptable to the United States


A still-secret draft of the coalition’s proposals is to be introduced soon by the United Arab Emirates, the official said.


“It doesn’t look good,” said a former U.S. intelligence official tracking the talks for private technology clients.


The emergence of the new coalition, whose members are generally seeking greater Internet censorship and surveillance, is likely to harden battle lines separating those countries from the United States and some allies in Western Europe.


The United States and others objected to the introduction of complex new material midway through the conference.


“All of the indicators we have so far is it’s something that could be a clear effort to extend the treaty to cover Net governance,” said policy counsel Emma Llanso of the nonprofit Center for Democracy & Technology, which draws funding from Google and other U.S. Internet companies.


“What we’re seeing is governments putting forward their visions of the future of the Internet, and if we see a large group of governments form that sees an Internet a lot more locked down and controlled, that’s a big concern.”


CONCERNS ABOUT GOVERNMENT CONTROLS


The U.S. ambassador to the conference said in an earlier interview that his country would not sign any agreement that dramatically increased government controls over the Internet.


That would potentially isolate America and its allies from much of the world, and technology leaders fear that the rest of the globe would agree on actions such as identifying political dissidents who use the Internet and perhaps trying to alter the Net’s architecture to permit more control.


The 147-year-old ITU, which is now under the auspices of the United Nations, historically has set technology standards and established payment customs for international phone calls. But under Secretary-General Hamadoun Touré, it has inched toward cyber-security and electronic content issues, arguing that Internet traffic goes over phone lines and is therefore within its purview.


The ITU is considering other issues in its most extensive rewrite of the treaty in 15 years, including proposals that content providers shoulder the costs of transmission. But none is as controversial as the projected Internet controls.


The Internet’s infrastructure, while initially funded in part by the U.S. government, is now largely in private hands. It has been subject to little government control, although many nations have attempted to regulate Internet communications in various ways.


ICANN, a self-governing nonprofit under contract to the U.S. Department of Commerce, is ultimately responsible for making sure that people trying to reach a given website actually get there, but most technology policies are developed by industry groups.


At the ITU meeting, the American delegation had counted on support from at least Japan, Australia and other affluent democracies.


But its effort to stave off wholesale changes has been hindered by complications in Western Europe, where some countries were supporting a change to the economic model that would have Google, Facebook and others pay for at least some of the costs of Internet transmission.


Smaller groups at the ITU conference will work through the weekend, with the full body meeting again on Monday.


(Editing by Jonathan Weber and Peter Cooney)


Tech News Headlines – Yahoo! News


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