Anti-virus firm makes new revelation on Stuxnet

Updated at 11:22 a.m. ET

LONDON The sophisticated cyberweapon which targeted an Iranian nuclear plant is older than previously believed, an anti-virus firm said Tuesday, peeling back another layer of mystery on a series of attacks attributed to U.S. and Israeli intelligence.

The Stuxnet worm, aimed at the centrifuges in Iran's Natanz plant, transformed the cybersecurity field because it was the first known computer attack specifically designed to cause physical damage. The precise origins of the worm remain unclear, but until now the earliest samples of Stuxnet had been dated to 2009.

Security experts generally agree that Stuxnet was an attempt to sabotage Iran's uranium enrichment centrifuges, which can be used to make fuel for reactors or weapons-usable material for atomic bombs. Iran maintains its nuclear program is for peaceful purposes.




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Stuxnet: Computer worm opens new era of warfare






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Stuxnet copycats: Let the hacking begin



As "60 Minutes" correspondent Steve Kroft reported last year, Stuxnet was incredibly complicated and sophisticated, beyond the cutting edge. By the time it was first detected in June 2010, it had been out in the wild for a year without drawing anyone's attention, and seemed to spread by way of USB thumb drives, not over the Internet.

By the fall of 2010, the consensus was that Iran's top secret uranium enrichment plant at Natanz was the target and that Stuxnet was a carefully constructed weapon designed to be carried into the plant on a corrupted laptop or thumb drive, then infect the system, disguise its presence, move through the network, changing computer code and subtly alter the speed of the centrifuges without the Iranians ever noticing, Kroft reported.

"Stuxnet's entire purpose is to control centrifuges," Liam O Murchu, an operations manager for Symantec, told Kroft. "To make centrifuges speed up past what they're meant to spin at and to damage them. Certainly it would damage the uranium enrichment facility and they would need to be replaced."

Last June, The New York Times traced the origins of the top-secret program back to 2006.

In a new report issued late Tuesday, Symantec Corp. pushed that timeline further back, saying it had found a primitive version of Stuxnet circulating online in 2007 and that elements of the program had been in place as far back as 2005.

One independent expert who examined the report said it showed that the worm's creators were particularly far-sighted.

"What it looks like is that somebody's been thinking about this for a long, long time — the better part of a decade," said Alan Woodward, a computer science professor at the University of Surrey. "It really points to a very clever bunch of people behind all of this."




Nuclear Iran: Sites and potential targets


A look at the locations where Iran carries out work linked to its suspected pursuit of nuclear weapons



The Times reported that President George W. Bush ordered the deployment of Stuxnet against Iran in a bid to put the brakes on its atomic energy program, detailing how the worm tampered with the operation of Natanz's centrifuge machines to send them spinning out of control.

President Obama, who succeeded Bush shortly after the first attacks, expanded the campaign, the report said.

U.S. and Israeli officials have long declined to comment publicly on Stuxnet or their alleged involvement in creating and deploying the computer worm.

Symantec's report suggests that an intermediate version of the worm — Stuxnet 0.5 — was completed in November 2007. That worm lacked some of the sophistication of its descendant, Symantec said, and was designed to interfere with the centrifuges by opening and closing the valves which control the flow of uranium gas, causing a potentially damaging buildup in pressure.

That approach was dropped in later, improved versions of the Stuxnet code.

Symantec said the servers used to control the primitive worm were set up in November 2005, suggesting that Stuxnet's trailblazing authors were plotting out their attack at a time when many parts of the Internet now taken for granted were not yet in place. Twitter did not exist, Facebook was still largely limited to U.S. college campuses, and YouTube was in its infancy.

Woodward said that had troubling implications.

"Clearly these were very forward-thinking, clever people that were doing this," he said. "There's no reason to think that they're less forward-thinking now. What are they up to?"

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Bring on the Cuts: Some Want the Sequester












Mark Lucas wouldn't mind seeing America's defense budget cut by billions.


"There's quite a bit of waste within the military," Lucas, who serves as Iowa state director for the conservative group Americans for Prosperity (AFP), told ABC News. "Being in there for 10 years, I've seen quite a bit of it."


With the budget sequester set to kick in on Friday, the former Army ranger is among a small chorus of conservatives saying bring on the cuts.


Read more: Bernanke on Sequester Cuts: Too Much, Too Soon


Lucas cited duplicative equipment purchases, military-run golf courses and lavish food on larger bases -- unlike the chow he endured at a combat operations post in Afghanistan with about 120 other soldiers.


"These guys would have very good food, and I'm talking almost like a buffet style, shrimp and steak once a week, ice cream, all this stuff," Lucas said. "They had Burger Kings and Pizza Huts and McDonald's. And I said to myself, 'Do we really need this?'"


Lucas and AFP would like to see the sequester modified, with federal agencies granted more authority to target the cuts and avoid the more dire consequences. But the group wants the cuts to happen.


"We're very supportive of the sequestration cuts but would prefer to see more targeted cuts at the same level," said the group's spokesman, Levi Russell.


As President Obama and his Cabinet members are sounding the sequester alarm bells, AFP's willingness shows that not everyone is running for the hills.






Charles Dharapak/Pool/AP Photo











Speaker Boehner Hopes Senate 'Gets Off Their Ass' Watch Video









Sequester Showdown: Automatic Spending Cuts Loom Watch Video









President Obama Details Consequences of Sequester Cuts Watch Video





Read more: 57 Terrible Consequences of the Sequester


Obama traveled to Norfolk, Va., on Tuesday to speak at a shipyard about cuts and layoffs to defense contractors. In his most recent weekly radio address, he told Americans that the Navy has already kept an aircraft carrier home instead of deploying it to the Persian Gulf. And last week, he spoke before national TV cameras at the White House, warning that first responders would be laid off.


Homeland Security Secretary Jane Napolitano has warned that the sequester will "leave critical infrastructure vulnerable to attacks." Transportation Secretary Ray LaHood has warned that air travel will back up after the Federal Aviation Administration furloughs air traffic controllers. And the heads of 18 other federal agencies told Congress that terrible things will happen unless the sequester is pushed off.


Some Republicans have accused the president of scaremongering to gin up popular support for tax hikes. Obama has warned of calamity and demanded compromise in the next breath, and a few Republicans have rejected this as a false choice.


Read more: Boehner Hopes Senate 'Gets Off Their Ass'


"I don't think the president's focused on trying to find a solution to the sequester," House Speaker John Boehner told reporters at a press conference on Tuesday. "For 16 months, the president's been traveling all over the country holding rallies, instead of sitting down with Senate leaders in order to try to forge an agreement over there in order to move the bill."


After Obama spoke to governors at the this week, Republican Louisiana Gov. Bobby Jindal told ABC News' Jonathan Karl outside the White House that the president is exaggerating the sequester's consequences.


"He's trying to scare the American people," Jindal said. "He's trying to distort the impact."






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Iran upbeat on nuclear talks, West still wary


ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears of a secret weapons program.


The United States, China, France, Russia, Britain and Germany offered to ease sanctions slightly in return for Iran curbing its most sensitive work, but had made clear they expected no breakthrough in the talks in Kazakhstan, the first in eight months.


U.S. Secretary of State John Kerry said the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.


Iran's foreign minister said in Vienna he was "very confident" a deal could be reached and its chief negotiator said he believed the Almaty meeting could be a "turning point".


The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the offer, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see substantive movement by Iran.


"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said in Paris.


A senior U.S. official in Almaty added: "What we care about at the end is concrete results."


ISRAELI WARNING


Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.


Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.


Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.


In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".


This appeared to be a softening of a previous demand that Iran ship out its entire stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.


Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.


But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade.


Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.


ELECTION LOOMING


The U.S. official said the latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.


Iran had previously indicated that 20-percent enrichment was up for negotiation if it received the fuel from abroad instead.


Chief negotiator Saeed Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.


Western officials were aware that the closeness of Iran's presidential election in June is raising political tensions in Tehran and made rapid progress unlikely.


One diplomat in Almaty said the Iranians appeared to be suggesting at the negotiations that they were opening new avenues, but that it was not clear if this was really the case.


"Everyone is saying Iran was more positive and portrayed the talks as a win," said Iran expert Dina Esfandiary of the International Institute for Strategic Studies. "I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections."


The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking web sites reported.


(Additional reporting by Fredrik Dahl in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Kevin Liffey)



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Iran tells Zardari pipeline must advance despite US






TEHRAN: Iran's supreme leader Ayatollah Ali Khamenei on Wednesday told the visiting Pakistani president that a much-delayed $7.5 billion gas pipeline project must go ahead despite US opposition.

"The Iran-Pakistan gas pipeline is an important example of Tehran-Islamabad cooperation, and despite hostilities towards the expansion of ties we must overcome this opposition decisively," Khamenei told Asif Ali Zardari, his office reported.

The gas pipeline project is strongly opposed by Tehran's archfoe Washington.

"Accessing safe energy source is the first priority for any country including Pakistan. In this region, the Islamic republic is the only nation that has safe energy resources and we are ready to provide Pakistan its energy needs," the all-powerful Khamenei said.

The pipeline project has run into repeated problems, including Pakistan's difficulty in finding funds and opposition to the project from Washington, which has slapped Iran with a raft of sanctions over its nuclear activities.

The Pakistani media reported last year that Zardari would visit Iran in mid-December 2012, when a final agreement was to have been signed, but the visit was delayed.

In 2010, Iran and Pakistan agreed that Tehran would supply between 750 million cubic feet (21 million cubic metres) and one billion cubic feet per day of natural gas by mid-2015.

Iranian President Mahmoud Ahmadinejad told Zardari that, "building the gas pipeline between Iran and Pakistan is a great and important event, and it serves the two nations' interests," the president's office reported.

"I believe that building this project is very beneficial for both sides and we support all the work carried out so far," Zardari said in talks his Iranian counterpart.

"The international and regional players have tried in vain to prevent an expansion of Iran-Pakistan ties but the people have learnt how to act against enemies of Islam," he was quoted as saying.

Islamabad has said it will pursue the project regardless of US pressure, saying the gas is needed to help Pakistan overcome its energy crisis that has led to debilitating blackouts and suffocated industry.

Iran has almost completed the pipeline work in its territory, but Pakistan has not yet started construction of 780 kilometers (490 miles) of the pipeline on its side, which is said to cost some $1.5 billion.

Sanctions-hit Iran finally agreed to finance one-third of the costs of laying the pipeline through Pakistani territory to Nawabshah, north of Karachi, with the work to be carried out by an Iranian company.

Pakistani officials in mid-December said Iran had promised a $500 million loan and that Islamabad would meet the rest of the cost.

"There are impediments in view of the US opposition to the project but we are determined to complete it to meet our fast-growing energy requirements," said one government official on condition of anonymity.

Tehran has been strangled by a Western oil embargo that has seen its crude exports halve in the past year, while Pakistan has an acute need for energy and plans to produce 20 percent of its electricity from Iranian gas.

Iran has the second largest world gas reserves after Russia and currently produces some 600 million cubic metres a day, almost all of which is consumed domestically due to lack of exports means.

The only foreign client is Turkey, which buys about 30 million cubic metres of gas a day.

Tehran also plans to sell its gas to two other neighbours, Iraq and Syria. The three countries agreed in 2011 to build a pipeline, with the work already started on the Iranian side.

-AFP/ac



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Twitter's Windows Phone app joins the 21st century



Twitter updated its Windows Phone app this morning, bringing it in line with its iOS and Android apps.



(Credit:
Twitter)



Twitter today updated its Windows Phone app, adding a slew of new discovery features that had been included in the social network's iOS and Android apps for some time.


In a blog post, Twitter said that it had fundamentally redesigned the Windows Phone version of its app to be "in line with other Twitter apps," in part by adding an all-new navigation structure for those on Microsoft's mobile OS.




That structure is built around the Home, Connect, Discovery, and Me tabs that have been used for Twitter's iOS and
Android apps for awhile. The Home tab allows users to see their timeline, and to tap on a tweet in order to see its full content. The Connect tab is built to let users see all their @-mentions or who has followed, retweeted, or favorited them. The new Discover tab is home to trending topics, as well as a place to find new content or people on Twitter. And the Me tab is a place for users to see and reply to direct messages, browse lists, and update their profile.


The new Windows Phone app will also feature buttons for instantly composing a new tweet, and for searching Twitter. Plus it will have "live tiles" meant to let users "pin Twitter accounts, lists and searches to your start screen, giving you quick access to some of your favorite Twitter content."


Twitter has recently been working hard to make its user experience consistent across various platforms, and today's move is just the latest in its attempts to ensure that users have a similar experience -- crucial as it builds out its advertising platform -- regardless of which OS they're on.


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At least 19 tourists die in balloon crash in Egypt

Updated 9:02 a.m. EST

LUXOR, Egypt A hot air balloon flying over Egypt's ancient city of Luxor caught fire and crashed into a sugar cane field on Tuesday, killing at least 19 foreign tourists, a security official said. The death toll rose Tuesday afternoon after a British tourist died of his injuries.

It was one of the worst accidents involving tourists in Egypt and is likely to push the key tourism industry deeper into recession.

The casualties included French, British, Belgian, Hungarian, Japanese nationals and nine tourists from Hong Kong, Luxor Governor Ezzat Saad told reporters.

Three survivors of the crash -- two British tourists and one Egyptian -- were taken to a local hospital. Local media reports said the pilot was among the survivors. One of the British tourists eventually succumbed to his injuries.

According to the Egyptian security official, the balloon was carrying at least 20 tourists and over Luxor when it caught fire, which triggered an explosion in its gas canister. It then plunged at least 1,000 feet from the sky.

The balloon crashed into a sugar cane field outside al-Dhabaa village just west of Luxor, 320 miles south of Cairo, said the official, speaking on condition of anonymity because he was not authorized to talk to the media.


Egyptians inspect the site where a hot air balloon exploded over the ancient temple city of Luxor on February 26, 2013. The hot air balloon caught fire and exploded over Luxor during a sunrise flight, killing 18 tourists, including Asians and Europeans, sources said. The balloon carrying 21 people was flying at when it caught fire, a security official said.

Egyptians inspect the site where a hot air balloon exploded over the ancient temple city of Luxor on February 26, 2013.


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STR/AFP/Getty Images

Bodies of the dead tourists were scattered across the field around the remnants of the balloon. An Associated Press reporter at the crash site counted eight bodies as they were put into body bags and taken away. The security official said all 18 bodies have been recovered.

The official said foul play has been ruled out.

Egypt's civil aviation minister, Wael el-Maadawi, flew to Luxor to lead the investigation into the crash.

The head of Japan Travel Bureau's Egypt branch, Atsushi Imaeda, confirmed that four Japanese died in the crash. He said two were a couple in their 60s and from Tokyo. Details on the other two were not immediately available.

In Hong Kong, a travel agency said nine of the tourists that were aboard the balloon were natives of the semiautonomous Chinese city. There was a "very big chance that all nine have perished," said Raymond Ng, a spokesman for the agency. The nine, he said, included five women and four men from three families.

They were traveling with six other Hong Kong residents on a 10-day tour of Egypt.

Ng said an escort of the nine tourists watched the balloon from the ground catching fire around 7 a.m. and plunging to the ground two minutes later.

In Britain, tour operator Thomas Cook confirmed that two British tourists were dead and two were in hospital.

"What happened in Luxor this morning is a terrible tragedy and the thoughts of everyone in Thomas Cook are with our guests, their family and friends," said Peter Fankhauser, CEO of Thomas Cook UK & Continental Europe.

"We have a very experienced team in resort with the two guests in the local hospital, and we're providing our full support to the family and friends of the deceased at this difficult time," he said.

In Paris, a diplomatic official said French tourists were among those involved in the accident, but would give no details on how many, or whether French citizens were among those killed.

Speaking on condition of anonymity because he wasn't authorized to be publicly named according to government policy, the official said French authorities were working with their Egyptian counterparts to clarify what happened. French media reports said two French tourists were among the dead but the official wouldn't confirm that.

Hot air ballooning, usually at sunrise over the famed Karnak and Luxor temples as well as the Valley of the Kings, is a popular pastime for tourists visiting the area.

The site of the accident has seen past crashes. In 2009, 16 tourists were injured when their balloon struck a cellphone transmission tower. A year earlier, seven tourists were injured in a similar crash.

Egypt's tourism industry has been decimated since the 18-day uprising in 2011 against autocrat leader Hosni Mubarak and the political turmoil that followed and continues to this day.

Luxor's hotels are currently about 25 percent full in what is supposed to be the peak of the winter season.

Scared off by the political turmoil and tenuous security that has followed the uprising, the number of tourists coming to Egypt fell to 9.8 million in 2011 from 14.7 million the year before, and revenues plunged 30 percent to $8.8 billion.

Poverty swelled at the country's fastest rate in Luxor, which is highly dependent on visitors to its monumental temples and the tombs of King Tutankhamun and other pharaohs. In 2011, 39 percent of its population lived on less than $1 a day, compared to 18 percent in 2009, according to government figures.

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Italy parties seek way out of election stalemate


ROME (Reuters) - Italy's stunned political parties looked for a way forward on Tuesday after an election that gave none of them a parliamentary majority, posing the threat of prolonged instability and European financial crisis.


The results, notably by the dramatic surge of the anti-establishment 5-Star Movement of comic Beppe Grillo, left the center-left bloc with a majority in the lower house but without the numbers to control the powerful upper chamber, the Senate.


Financial markets fell sharply at the prospect of a stalemate that reawakened memories of the crisis that pushed Italy's borrowing costs toward unsustainably high levels and brought the euro zone to the brink of collapse in 2011.


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


Pier Luigi Bersani, head of the center-left Democratic Party (PD), has the difficult task of trying to agree a "grand coalition" with former prime minister Silvio Berlusconi, the man he blames for ruining Italy, or striking a deal with Grillo, a completely unknown quantity in conventional politics.


The alternative is new elections either immediately or within a few months, although both Berlusconi and Bersani have indicated that they want to avoid a return to the polls if possible: "Italy cannot be ungoverned and we have to reflect," Berlusconi said in an interview on his own television station.


For his part, Grillo, whose "non-party" movement won the most votes of any single party, has indicated that he believes the next government will last no more than six months.


"They won't be able to govern," he told reporters on Tuesday. "Whether I'm there or not, they won't be able govern."


He said he would work with anyone who supported his policy proposals, which range from anti-corruption measures to green-tinted energy measures but rejected suggestions of entering a formal coalition: "It's not time to talk of alliances... the system has already fallen," he said.


The election, a massive rejection of the austerity policies applied by Prime Minister Mario Monti with the backing of international leaders from U.S. President Barack Obama to German Chancellor Angela Merkel, caused consternation across Europe.


"This is a jump to nowhere that does not bode well either for Italy or Europe," said Spanish Foreign Minister Jose Manuel Garcia-Margallo.


In a sign of worry at the top over what effect the elections could have on the economy, Monti, whose austerity policies were repudiated by voters who shunned his centrist bloc, met the governor of the central bank, the economy minister and the European affairs minister to discuss the situation on Tuesday.


The former EU commissioner and his team of technocrats, who were brought in to govern when Berlusconi was consumed by crisis and scandal, will stay on until a new administration is formed.


UNTHINKABLE WITHOUT GRILLO


Projections for the Senate by the Italian Centre for Electoral Studies indicated that the center-left would have 121 seats, against 117 for the center-right alliance of Berlusconi's PDL and the regionalist Northern League. Grillo would take 54.


That leaves no party with the majority in a chamber which a government must control to pass legislation and opened up the prospect of previously inconceivable partnerships that will test the sometimes fragile internal unity of the main parties.


"The idea of a majority without Grillo is unthinkable. I don't know if anyone in the PD is considering it but I'm against it," said Matteo Orfini, a member of Bersani's PD secretariat.


"The idea of a PD-PDL government, even if it's backed by Monti, doesn't make any sense," he said.


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


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


The Milan bourse was down almost 4 percent and the premium Italy pays over Germany to borrow on 10-year widened to a yield spread of 338 basis points, the highest since December 10 and more than 80 points above the level seen earlier on Monday.


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


The euro dropped to an almost seven-week low against the dollar in Asia on fears of a revival of the euro zone crisis. It fell as far as $1.3042, its lowest since January 10.


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


However the view from some voters, weary of the mainstream parties, was unrepentant: "It's good," said Roger Manica, 28, a security guard in Rome, who voted for the center-left PD.


"Next time I'll vote 5-Star. I like that they are changing things, even if it means uncertainty. Uncertainty doesn't matter to me, for me what's important is a good person who gets things done," he said. "Look how well they've done."


A long recession and growing disillusionment with mainstream parties and tax-raising austerity fed the bitter public mood and contributed to the massive rejection of Monti, whose centrist coalition was relegated to the sidelines.


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


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


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


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


For Italian business, with an illustrious history of export success, the election result brought dismay that there would be no quick change to what they see as a regulatory sclerosis that has kept the economy virtually stagnant for a decade.


"This is probably the worst possible scenario," said Francesco Divella, whose family began selling pasta under its eponymous brand in 1890 in the southern region of Puglia.


"We are very concerned about the uncertainty and apparent ungovernability," said Silvio Pietro Angori, chief executive of Pininfarina, which has designed Ferrari sportscars since 1950. "A company competing on the global markets like Pininfarina needs the support of a stable government that inspires trust."


One of the country's leading bankers summed up his personal reaction: "I'm in shock," he told Reuters. "What a mess!"


(Additional reporting by Barry Moody, Gavin Jones, Lisa Jucca, Steven Jewkes, Steve Scherer Writing by Philip Pullella and James Mackenzie; Editing by Alastair Macdonald)



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Portugal may get more time to cut deficit: prime minister






LISBON: Portugal's prime minister on Tuesday said his country may be granted more time to meet its fiscal targets as the implementation of its international bailout was under review.

"There is a possibility of getting one year more to adjust the state deficit and it is very likely that this is up for discussion", Pedro Passos Coelho said as the so-called Troika of public creditors -- the European Union, the European Central Bank and the International Monetary Fund -- on began its latest review of the country's finances.

Portugal was granted a financial rescue package worth 78 billion euros ($103 billion) in May 2011, in exchange for a pledge to straighten out its finances via austerity measures and economic reforms.

Last year the Troika gave eased Portugal's fiscal targets given the recession in the country and across much of the eurozone.

Lisbon now has to reduce its public deficit to 4.5 percent of GDP this year, instead of bringing it back within the EU ceiling of 3.0 percent of GDP.

The government has recently conceded it may be impossible for it to reach even the revised targets given the continued recession.

On Sunday, Finance Minister Vitor Gaspar said the economy is expected to contract around 2 percent this year, or double that of its previous forecast, and said he hopes the European Commission will give Portugal another year to reach the 3.0 percent target.

Passos Coelho said his country would like to "finish the (rescue) programme in June 2014 and we will neither ask for more time or more money."

-AFP/ac



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Feature phones still outshine smartphones in key countries



Kyocera's Durapro feature phone.

Kyocera's Durapro feature phone.



(Credit:
Kyocera)


Smartphones may be hot in the U.S. and U.K, but feature phones dominate in such countries as India and Russia, according to the folks at Nielsen.


Released today, Nielsen's "2013 Mobile Consumer Report" found that smartphones owners make up the majority of mobile phone users in nations such as the U.S., the U.K., South Korea, and China.


But in other countries, the networks required to support smartphones are still limited to large urban areas. As a result, the standard feature phone remains the top choice in regions such as India, Brazil, and Russia. But that trend could eventually start to swing.


Younger mobile users around the world are the ones most likely to be drawn to smartphones. As those people age and make up a greater slice of the consumer base, more countries may be spurred to expand their smartphone networks.


Among people surveyed for the report, smartphone ownership was cited by 53 percent of those in the U.S., 61 percent in the U.K., 67 percent in South Korea, and 66 percent in China. But only 10 percent in India, 19 percent in Turkey, 36 percent in Brazil, and 37 percent in Russia said they owned a smartphone.


Nielsen also found a difference in smartphone plans based on country.


People in areas with a higher percentage of smartphone owners tend to opt for fixed price data plans. Those in countries with a small percentage of smartphone users were more inclined to use pay-as-you-go plans or simply rely on Wi-Fi to get connected.


Many people across different countries also own more than one mobile phone, in some cases one for work and one for home. A full 51 percent of people in Russia said they own more than one phone, while only 17 percent of those in the U.S. said the same.


And what are people across the globe doing with their smartphones?


Text messaging, Web browsing, and using social networks proved the most popular activities among most of the countries included in the report. Games, social networking apps, and navigation apps were tops in mobile software across a majority of countries.


Nielsen's report analyzed the behavior and device preferences among consumers in the U.S., U.K., Australia, Brazil, China, India, Italy, Russia, South Korea, and Turkey.


From April to June 2012, Nielsen interviewed 76,204 mobile users, 54,585 of which were able to identify their mobile phone. Among those, 28,103 said they owned a smartphone and 26,482 owned a non-smartphone.


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Addressing controversy, Menendez invokes words of MLK

Amid a handful of allegations that threaten to mar his reputation in the Senate, Sen. Bob Menendez, D-N.J., continues to maintain his innocence, decrying the accusations as right-wing attempts to "destroy" his career and invoking the words of Martin Luther King Jr. in asserting his faith that justice will win out.

Menendez, who was re-elected to his seat in November, has since been hit with allegations that he solicited prostitutes in the Dominican Republic, where prostitution is legal. The FBI is looking into the claims. The allegations were originally reported by a conservative website citing an anonymous source.

Menendez has also been accused of improperly lobbying the State Department on a port security contract on behalf of Dr. Salomon Melgen, a close friend and donor. Menendez recently reimbursed Melgen $58,000 for two of three trips he took on Melgen's plane to the Dominican Republic in 2010, but called the tardy reimbursement an honest oversight and says the allegations against him are "absolutely false." The Senate Ethics Committee is investigating Menendez regarding those trips. Melgen himself is the target of more than one federal investigation stemming from allegations of Medicare fraud.

This weekend, at an event celebrating Black History Month at Shiloh Baptist Church in Trenton, N.J., the senator answered the accusations with the words of Martin Luther King Jr.

"Dr. King said that 'the arc of the moral universe is long, but it bends toward justice,'" he said, according to the New Jersey Star-Ledger. "Now we face anonymous, faceless, nameless individuals from right-wing sources seeking to destroy a lifetime of work. And their scares are false. I have worked too hard and too long in the vineyards to allow, at my hands, for the harvest to be soured."

"I have felt the sting of discrimination," he said, according to the North Jersey Record.

Menendez said he believes ultimately, "justice will overcome the forces of darkness."

"I have my hand on the plough," he said, "and I am going to continue to look forward and to work to make that plough lead us to the fulfillment of educational, economic and health care opportunity in this country."

A recent Quinnipiac poll shows a recent drop in Menendez's popularity, with just 36 percent approving and 41 percent disapproving.

But the Democrat, who is at the start of another six-year term, brushed off the importance of those numbers.

"The only poll that matters is what do I get accomplished each and every day," he said, according to the Star-Ledger.

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