Stock futures rise with Wall Street set for bounce back

NEW YORK (Reuters) - U.S. stock index futures rose on Friday, pointing to a modest rebound for Wall Street after Thursday's retreat, though investors remained concerned about a lack of progress by politicians in ongoing fiscal negotiations.

Economic data out of China showed that manufacturing in the world's second-largest economy grew at its fastest pace in 14 months in December. That indicated China's economy was on the mend, encouraging news for its key trading partners such as the United States.

However, in Europe, the euro zone's manufacturing and services sectors showed only small signs of improvement and remained in contraction territory.

"If we assume we're going to have a continuation of a shallow recession in the euro zone, the global economy can actually increase in terms of GDP with a pick up in the pace of the Chinese economy," said Art Hogan, managing director of Lazard Capital Markets in New York.

"The bad news is, in large part, we've seen the market ignore relatively good news in the economic data stream as we focus on the fiscal cliff."

President Barack Obama and House of Representatives Speaker John Boehner held a "frank" meeting Thursday to try to break an impasse in negotiations over the "fiscal cliff," tax hikes and spending cuts set to kick in early in 2013.

Frustration has mounted over the lack of progress in the discussions, with market participants' worries reflected in a 0.6 percent drop in the S&P 500 on Thursday. Investors are concerned that going over the cliff could tip the economy back into recession. While a deal is expected to be reached eventually, a drawn-out debate - like the one seen over 2011's debt ceiling - can erode confidence.

"I think the market is convinced, due to the fact that we haven't seen much of a pullback, that some (fiscal) compromise will happen before the end of the year," said Hogan.

Worries over the outcome of the talks ended the S&P 500's six-day winning streak on Thursday, but the index has performed well over the past month. On Wednesday, the S&P hit its highest intraday level since late October.

S&P 500 futures rose 2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 32 points, and Nasdaq 100 futures added 1 point.

The consumer price index for November is due at 8:30 a.m. ET, while industrial production will be released at 9:15 a.m. ET.

Shares of Adobe Systems were up 5.8 percent at $37.59 in premarket trading after the company said it expected profit and earnings to grow from 2013 onwards.

Sprint Nextel Corp's $2.1 billion offer to buy out Clearwire Corp appeared to be running into trouble on Thursday, as some shareholders said they wanted more money, while Softbank Corp set a cap on how much Sprint could pay.

Clearwire shed 1.6 percent to $3.11 in light premarket trading.

Apple's iPhone 5 will be released in China on Friday but its longer-term hopes may depend on new technology being tested by China's top telecoms carrier. Shares of Apple were down 1.7 percent at $520.50 in premarket trading.

(Editing by Bernadette Baum)

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Moscow Journal: Russian Web Site Roszkh Fights Corruption Through Housing

MOSCOW — Not since Joe the Plumber have contractors taken on such political overtones.

In a city where it is often impossible to get a plumber or any other repairman, somebody just figured out how to fix the pipes — and replace light bulbs, scrub off graffiti and patch leaky roofs. Throughout Moscow and other Russian cities, such elementary building repairs are suddenly in full swing as the city’s craftsmen, their reputations for surliness, laziness and drunkenness undiminished, are hurrying from one appointment to another.

Delighted Muscovites are crediting a new Web site for the unaccustomed Calvinist work ethic. Called Roszkh, it streamlines the process for filing complaints about maintenance of the communal areas of apartment buildings, like hallways and entryways, that remained public property after post-Soviet privatizations.

Stymied by a loss of momentum after street protests, Russian opposition leaders had been casting about for other approaches to remain relevant through what promises to be a long tenure for President Vladimir V. Putin. Aleksei Navalny, a blogger and political activist, hit upon the idea of the Web site, which is run under the auspices of his Foundation for Fighting Corruption.

“It’s difficult to say when the next wave of protests will come,” Mr. Navalny said in an interview about his new site, named after an acronym Russians use for their combined utility and building maintenance bills, ZhKKh.

Roszkh was an instant sensation. Since the site went up on Nov. 8, 28,354 users have filed 45,835 complaints, mostly in Moscow and other large cities. So far, repairmen have fixed about 2,600 reported problems. That may not sound like much, but in Russia it qualifies as extraordinary.

“I live in an old five-story building where the hallway has no light and no windows,” one Muscovite, Boris Frantskevich, wrote in a post. It seemed it would be that way forever. But on a lark, he tried logging a complaint on the Web site.

“Just today, I walk out of my apartment and an electrician is digging in the wires,” Mr. Frantskevich wrote. “Wow, he’s fixed the light.”

Mr. Navalny attributes the site’s success to official sensitivities to a deep vein of public anger over the deplorable state of housing in Russia, and particularly in Moscow. In a leaked letter, Russia’s chief housing inspector issued an order that the complaints on Mr. Navalny’s Web site be addressed immediately.

The inspector, Nikolai Vasyutin, clarified the government response in a letter to subordinates: Applicants needed to be helped immediately, not in spite of the site’s political character, but because of it.

“It’s become obvious this is a policy by the opposition to discredit all levels of the government,” the letter said. “But this shouldn’t confuse the organs of the state housing inspection.” It instructed city officials to counteract the tactic by fixing problems quickly.

Public opinion surveys indicate that the steady rise in ZhKKh fees is the issue that upsets Russians most; a planned increase was delayed during presidential elections last winter, only to kick in this year.

The fees have been rising faster than inflation. Many Russians are incensed about paying more — currently about $130 a month in Moscow, and less in other cities — while hallways, even in upscale buildings, are often yawning black tunnels, splattered with graffiti and reeking of septic odors.

These problems have become a vulnerability for Mr. Putin, but one largely of his own making. The governing political party, United Russia, went to great pains to ensure that it dominated not only national but also regional and local politics, often suppressing opponents to do so. The party also dominates city councils.

As Mr. Navalny, a former real estate lawyer, has been gleefully pointing out, this means that every broken light bulb and burst pipe is now the party’s problem.

“We are trying to attract people who can fight corruption together with us,” Mr. Navalny said. “It’s clear that an ordinary person has a hard time helping us fight corruption at Gazprom,” the big state energy company. “But unfortunately in Russia, corruption surrounds a person everywhere. We are trying to create a mechanism for people to fight corruption themselves.”

The site asks users to enter their address and choose from a menu of common Russian repair problems: water flowing a rich orange color from rusted pipes, say, or a boiler failing in midwinter.

The program then automatically pastes on a lengthy legal text composed by Mr. Navalny and his volunteer group of lawyers for the benefit of the receiving bureaucrat, citing ordinances that mandate a response or repair, usually within 45 days.

The site automatically routes complaints to the appropriate municipal authority in thousands of cities in Russia’s 83 regions. So far, though, Muscovites and residents of a few other large cities where Internet use is high have filed most of the complaints.

The site is easy to use. It saves profiles, allowing angry Russians to return whenever they have another leaky pipe or a new buildup of filth in a hallway.

In St. Petersburg, building inspectors initially declined to respond to several thousand complaints generated on the site. Whether that was for political reasons or out of laziness remains unclear.

But by early December, the office was working overtime to fix communal areas, and a housing maintenance official had been arrested for mismanagement, one of several moves by the government in an apparent effort to get ahead of the issue.

Even as complaints pile up, site moderators urge users to keep on filing.

One man, Sergei Sadko, wrote that an entire delegation of city officials promptly visited his apartment after he complained about a leaky roof.

“They said they would fix it in the spring,” he wrote. “Should I change my status to ‘problem solved’?”

The response: “File another complaint. They are required to fix everything immediately.”

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Google Maps finally comes to iOS. Again [updated]

Apple has had quite a bumpy car ride so far with it’s mapping product. That all ends in just a couple hours, however, because late Wednesday evening Google is planning on bringing Maps back to iOS with the release of the company’s own software. AllThingsD is reporting that Google’s app will be available for download in the App Store shortly, and we’ll provide some initial thoughts on it soon after.

UPDATE: Google Maps is now available on Apple’s App Store for the iPhone, iPad and iPod touch.

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Gadgets News Headlines – Yahoo! News

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John McAfee Deported from Guatemala, Back in U.S.

By Tim Nudd

12/13/2012 at 07:50 AM EST

John McAfee in Guatemala

Guatemala's National Police/AP

The latest chapter in the John McAfee saga was written Wednesday, as the anti-virus software pioneer was released from Guatemalan custody and flown to Miami, where he was met by federal officials.

"It was the most gracious expulsion I've ever experienced," McAfee, 67, told ABC News. "Compared to my past two wives that expelled me, this isn't a terrible trip."

He added: "They took me out of my cell and put me on a freaking airplane. I had no choice in the matter."

McAfee is wanted for questioning in the November gunshot murder of a neighbor in Belize. He has denied any wrongdoing, yet fled Belize – going undercover in disguise for several weeks – and sought asylum in Guatemala.

Authorities there arrested him for entering the country illegally. But after an eventful detention, in which McAfee was briefly hospitalized after suffering a nervous collapse, the country evidently felt it prudent to return McAfee to his home soil.

It was not clear Wednesday whether authorities in Miami escorted McAfee away to shield him from the media or because they wanted to question him.

McAfee said he has retained a lawyer in the U.S. and plans to seek a visa for his 20-year-old Belizean girlfriend.

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Stock futures mixed on "fiscal cliff" worries

NEW YORK (Reuters) - Stock futures were mixed on Thursday as a new round of stimulus for the economy was not enough to offset worries over the impact of the impending "fiscal cliff".

* In the European Union, finance ministers reached a deal to make the European Central Bank the bloc's top banking supervisor. The move could boost confidence in leaders' ability to tackle the region's sovereign debt crisis.

* But the set of U.S. tax hikes and spending cuts that are set to come into effect in the new year remained at the forefront of investors' minds. Negotiators on Wednesday warned the showdown over reaching a deal could drag on past Christmas.

* The Federal Reserve on Wednesday announced a fresh bout of stimulus for the U.S. economy, but markets focused on comments from Chairman Ben Bernanke, who reiterated that monetary policy would not be enough to offset going over the fiscal cliff.

* Investors are worried that doing so could send the economy back into recession, though most expect a deal will be struck eventually.

* The central bank also took the unprecedented step of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.

* In a busy day of data, reports on U.S. producer prices, retail sales and first time claims for unemployment benefits will all be released at 8:30 am ET (1330 GMT). Business inventories are due at 10:00 am ET (1500 GMT).

* S&P 500 futures fell 0.70 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were up 11 points, while Nasdaq 100 futures added 1.25 points.

* Sprint Nextel Corp is looking to buy Clearwire Corp stock it does not already own for $2.90 per share, it said in a regulatory filing. Shares of Clearwire were up 5.5 percent at $2.90 in premarket trading.

* Knight Capital Group Inc expects to make a decision on its future ownership by early next week, the Wall Street Journal reported, citing people familiar with the matter.

* Australia's GrainCorp Ltd rejected a sweetened $2.9 billion bid from Archer Daniels Midland Co . Analysts said ADM was likely to lift its bid for the company.

(Reporting by Leah Schnurr)

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Pope Benedict offers blessings with his first tweet

VATICAN CITY (Reuters) – After weeks of anticipation, Pope Benedict sent his first tweet on Wednesday.

“Dear friends, I am pleased to get in touch with you through Twitter. Thank you for your generous response. I bless all of you from my heart.”

The tweet was sent when the 85-year-old pope tapped on a touch screen at the end of his weekly general audience in the Vatican before thousands of people.

(Reporting By Philip Pullella, editing by Paul Casciato)

Internet News Headlines – Yahoo! News

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The Voice: Team Blake Goes Two-For-Two

TV Watch

The Voice

By Julia Haskins

12/12/2012 at 07:40 AM EST

From left: Judges Adam Levine, Cee Lo Green, Christina Aguilera and Blake Shelton

Trae Patton/NBC

And then there were three – thanks to Tuesday night's episode of The Voice.

Team Blake's Cassadee Pope and Terry McDermott and Team Cee Lo's Trevin Hunte and Nicholas David all awaited their fates during the elimination round to decide the top three, with the coaches seeming to be relieved that they would not have a role in the challenging decision.

McDermott was the first to learn that America's votes had guaranteed him another round of competition. To their coach's delight, Team Blake went two-for-two when Pope joined her teammate in celebration.

While Shelton's team remained intact, Green waited for his contestants' moment of truth. The coaches struggled to say goodbye to either one of the beloved singers.

Christina Aguilera advised Hunte and David to soak up all the lessons they learned on The Voice and move forward no matter what happened. Adam Levine opened up about his own regrets, having not turned his chair around the first time for the singers.

"I have grown to love you as people and love your talent so much," Levine said. "I was wrong not to turn around."

Their coach was also upset. "It's very disheartening and very difficult to see two of my best people on this show being pinned against each other," Green said.

David was the last contestant saved, while Hunte was sent home. "Thank you for pushing and motivating me." Hunte told his coach. "I love you, Cee Lo."

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

___

Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Stock futures edge higher as investors focus on Fed

NEW YORK (Reuters) - Stock futures edged higher on Wednesday, setting Wall Street up for a sixth day of gains, as investors anticipated the U.S. Federal Reserve will announce a new round of bond buying to support the economy.

* The Fed is expected to unveil a fresh round of bond buying on Wednesday as part of efforts to support a fragile economic recovery threatened by political wrangling over the government's budget. The monetary policy committee's decision is expected around 12:30 p.m. ET.

* Negotiations intensified to avert the "fiscal cliff" - tax hikes and spending cuts that kick in early in 2013 - ahead of a year-end deadline as President Barack Obama and U.S. House of Representatives Speaker John Boehner spoke by phone on Tuesday after exchanging new proposals.

* On the macroeconomic front, import and export price data is due at 8:30 a.m. ET. Economists in a Reuters survey expect import prices edged down by 0.5 percent last month, while export prices remained flat.

* S&P 500 futures rose 2 points and were slightly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 14 points, and Nasdaq 100 futures added 6.75 points.

* India's government announced an inquiry into lobbying practices by Wal-Mart Stores Inc. on Wednesday after a report that the giant retailer had pressed U.S. lawmakers to help gain access to foreign markets.

* Costco Wholesale Corp posted a 30 percent rise in quarterly profit, beating expectations, as the largest U.S. warehouse club chain saw sales rise and got a lift from higher membership fees.

* Sprint Nextel Corp is in talks with Intel Corp and Comcast Corp to buy out their stakes in the U.S. wireless provider Clearwire Corp , two people familiar with the matter said on Tuesday.

* U.S. stocks rose on Tuesday, led by technology companies. The S&P 500 closed at its highest since Election Day on November 6.

(Reporting by Angela Moon; Editing by Bernadette Baum)

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Mali’s Prime Minister Arrested by Military

BAMAKO, Mali – Soldiers arrested Mali’s prime minister at his residence late Monday night, in new turmoil in a West African nation racked by military interference and an Islamist takeover in the north.

Associated Press

Prime Minister Cheikh Modibo Diarra appeared on state television and announced his government’s resignation on Tuesday.

Hours later, Prime Minister Cheikh Modibo Diarra appeared grim-faced on national television to announce his government’s resignation. A spokesman for soldiers who seized power earlier in the year — and later nominally relinquished to Mr. Diarra — confirmed the prime minister’s arrest on Tuesday morning, accusing him of “playing a personal agenda” while the country faced a crisis in the north.

Mr. Diarra was taken by soldiers late Monday to the military encampment at Kati, just outside Bamako, the capital, where Capt. Amadou Sanogo, the officer who led the March military coup, and others told him “there were proofs against him that he was calling for subversion,” said a military spokesman, Bakary Mariko.

On Tuesday morning, the streets of Bamako appeared calm following what appeared to be the country’s second coup d’état in less than a year. But the new upheaval was likely to be considered a setback in western efforts to help Mali regain control of territory lost to Al Qaeda-linked militants earlier in the year.

The west has watched with growing alarm as Islamists radicals have constructed a stronghold in the country’s vast north and the United Nations, regional African bodies, France and the United States have engaged to aid the faltering Malian army in a military strike to take back the lost north. Those efforts have so far not coalesced in a coherent plan, despite numerous meetings and United Nations resolutions. More meetings at the United Nations were planned for later this month.

The latest political turmoil in the capital will almost certainly slow down any campaign in the north, however. Already, the United States has expressed reluctance to provide too much direct military assistance, given the shakiness of the political order here. Those doubts will likely only increase following the latest upheaval.

Mr. Diarra — appointed last spring as a caretaker prime minister until new elections, interrupted by the coup, could be organized — was known to disagree with Captain Sanogo on military policy.

He has been an advocate of immediate international military assistance to recapture the north from the Islamists. Captain Sanogo has rebuffed suggestions that the Malian military was incapable of handling the job on its own. Indeed, the captain for weeks resisted the notion that troops from other African nations should even approach the capital.

While Mr. Diarra has made the rounds of foreign capitals, pleading for help to fight the increasingly aggressive Islamists, military leaders have remained at the Kati base, grumbling.

That conflict was evident in the declarations of the military’s spokesman on Tuesday. “Since he has been in power, he has been working simply to position his own family,” Mr. Mariko, the spokesman, said. “There has been a paralysis in government.”

On Monday night, around 11 p.m. here, as Mr. Diarra was preparing for a flight to Paris for a medical checkup exam when the soldiers appeared at his home, and took him to Kati, Mr. Mariko said. “He was getting ready to go to the airport,” Mr. Mariko said.

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