Rebels Declare Damascus Airport a ‘Fair Target,’ Reports Say


Odd Andersen/Agence France-Presse — Getty Images


A rebel fighter carrying his son after Friday Prayers in Aleppo.







BEIRUT, Lebanon — As fighting raged in the suburbs of the Syrian capital, Damascus, and gunfire could be heard from the city center, rebels seeking the overthrow of President Bashar al-Assad were reported on Friday to have declared the capital’s main airport a “fair target,” warning travelers that they used it at their peril.




Against the backdrop of battlefield uncertainty, diplomacy also seemed to have made little perceptible progress. Secretary of State Hillary Rodham Clinton repeated calls for the ouster of President Assad, but said there had been no “great breakthrough” in talks she held Thursday in Dublin with her Russian counterpart, Sergey V. Lavrov, and Lakhdar Brahimi, the special Syria envoy of the United Nations and the Arab League.


“It was an important meeting, but just the beginning,” she said, speaking in Belfast, Northern Ireland, before flying back to Washington.


“I don’t think anyone believes  that there was some great breakthrough. Nobody should have any illusions about how hard this remains. But all of us with any influence on the process, with any influence on the regime or the opposition, needs to be engaged with Brahimi for a concerted, sincere push to see what is possible.”


“The advancing developments on the ground,” she said, “are increasingly dangerous.”


“The United States stands with the Syrian people in insisting that any transition process result in a  unified, democratic Syria in which all citizens are represented,” Mrs. Clinton continued. “And a future of this kind cannot possibly include Assad. So we go into these discussions with a clear sense of what we want to see accomplished but a realistic understanding of how difficult it still is.”


Russia has been Mr. Assad’s most durable backer throughout the crisis and has resisted efforts to push him out of power. After the Dublin talks, Mr. Lavrov was quoted as saying that he would not make “optimistic predictions” and that Mr. Brahimi, the special envoy, knows that the chance of success is “far from 100 percent.”


The bleak assessment came as government and rebel forces were locked in sustained battle, particularly to the south of the capital where, in recent days, the airport has been caught up in fighting for the capital’s suburbs and has been closed to civilian flights for days at a time.


Apart from its importance as a logistical center, the airport, 12 miles south of the capital, holds symbolic value. Its loss would boost the rebels’ ability to depict Mr. Assad as isolated and beleaguered.


Nabil al-Amir, a spokesman for an insurgent military group attacking the airport south of Damascus, said rebels “who have been putting the airport under siege decided yesterday that the airport is a fair target,” Reuters reported.


“The airport is now full of armored vehicles and soldiers,” Mr. Amir said, seeming to suggest that it was firmly in government control. “Civilians who approach it now do so at their own risk.”


News reports also suggested that government forces were seeking to bring in reinforcements for a counterattack designed to reverse rebel gains on the fringes of the city.


The rebel threat seemed to deepen the uncertainties of the military campaign for Damascus where visiting reporters say that the sound of government artillery fire pounding outlying suburbs is clearly audible from the city center — once a haven of tranquillity even as the uprising against Mr. Assad evolved from peaceful protest in March 2011 to civil war.


Activists said government forces backed by tanks were heading toward two southwestern suburbs, covering their effort to advance with rocket and mortar fire.


Overnight, sounds of gunfire were heard in central Damascus near a major road, Baghdad Street.


On the southern edge of the city, in Tadamon, where antigovernment sentiment is strong and clashes have taken place all week, rebel fighters took control of a checkpoint, the Local Coordinating Committees, an antigovernment activist network, reported.


In the central city of Homs, a car bomb exploded just before noon near a mosque in the wealthy residential area of Inshaat, neighboring the restive Baba Amr neighborhood, and many people were reported injured, residents and activists said.


There was no immediate claims of responsibility, but a demonstration denouncing the government broke out shortly afterward.


Anne Barnard reported from Beirut, Alan Cowell from London and Michael R. Gordon from Belfast, Northern Ireland. Hala Droubi contributed reporting from Dubai, United Arab Emirates.



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Crowdfunding websites clamor for clearer regulation












LONDON (Reuters) – A new breed of internet-based financiers are calling for action to end regulatory uncertainty they say is preventing them from getting money to the small and medium-sized businesses that need it.


The so-called crowdfunding sector raises cash from members of the public to fund lending and investment. Regulators, however, have proved resistant to pleas for adjustments to rules that are tailored to more traditional markets.












“Operators of these platforms find it difficult to launch and flourish because existing EU and UK regulation does not fit the new models,” operators within the sector said in an open letter to EU and UK policymakers on Friday.


The plea coincides with a summit to discuss proposals for regulating a market that has developed in reaction to reduced bank lending to small and medium-sized enterprises because of tougher capital rules and greater regulatory scrutiny.


A host of alternative financing models have cropped up online, many allowing individuals to lend to, or invest in, companies with sums from as little as 10 pounds ($ 16). Massolution, a research and advisory firm specializing in the sector, says that 1.2 billion euros ($ 1.6 billion) was raised globally from crowdfunding last year.


Though some crowdfunding websites have tried to fit their operations within the existing regulatory framework, most remain largely outside it.


Part of the problem in drawing up appropriate regulation is the wide range of activities involved. Some offer debt, some equity, while others seek donations for charity or funding for creative projects in return for some non-financial reward.


With little or no expected returns from the latter, the main regulatory focus would be on equity crowdfunding and peer-to-peer lending.


As well as making sure that individuals are aware of the inherent risk involved with putting money in start-ups, the industry wants to avoid the risk of scams by ensuring that platforms vet businesses adequately.


LOST IN THE CROWD


Britain’s Financial Services Authority (FSA) warned in August that inexperienced investors should be aware of the risks in crowdfunding websites. A few days later United States securities regulators put crowdfunding at the top of their annual investment scams list.


Views differ about how to tackle these risks without stifling an increasingly important source of funding, and the matter is complicated by the varying rules already in place in different countries across Europe.


Measures taken by Seedrs, the only crowdfunding website to have received FSA approval, include requiring investors to pass a test to show that they understand the risks.


“It is hard to come up with a whole securities regulation; sometimes it does have to be a bit incremental and adaptive,” Seedrs founder Jeff Lynn said. “There is no question at all this is going to be a space that will continue to move.”


Some would like the operation of such platforms to be a distinct regulated activity, but others argue for smaller steps, such as a cap on the sums that people can invest or lend.


The British government, keen to improve the flow of finance to small businesses to boost the sluggish economy, has set up a working group to look at all aspects of policy on such sites.


The FSA said that it considers authorization of crowdfunding schemes case by case. The European Commission, meanwhile, is considered as so far having had a largely observational role.


Though the introduction of a separate regulated activity could still be some way off, the co-founder of peer-to-peer site Zopa, Simon Deane-Johns, believes that increased engagement with governments and regulators shows that things are moving in the right direction.


“Over the next year or two it should become progressively easier to set up a platform,” he said, “possibly through a combination of the FSA understanding more readily where things fit within the current regime and balancing that with some self-regulation.”


(Editing by Alexander Smith and David Goodman)


Internet News Headlines – Yahoo! News


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It's a Boy for Jennifer Nettles!




Celebrity Baby Blog





12/07/2012 at 12:00 PM ET



Jennifer Nettles Gives Birth
Jason Kempin/Getty


How sweet!


Sugarland‘s Jennifer Nettles welcomed son Magnus Hamilton Miller on Thursday, Dec. 6, her rep confirms to PEOPLE.


Baby Magnus is the first child for the Grammy-winning singer, 38, and her husband, entrepreneur Justin Miller.


“We are so thankful for all the prayers and support and are excited to take some time together as a new family,” the couple say in a statement.


And the timing couldn’t have been better: after tying the knot during a small, sunset ceremony in Tennessee last year, the couple celebrated their first anniversary on Nov. 28.



In September, Nettles told PEOPLE she was busy enjoying her last trimester — sort of. “I just feel good to rest,” she said. “[But] things are starting to get a little uncomfortable, if you will!”


Still, after wrapping up touring with her band and performing on the music competition show Duets this summer, Nettles joked, “I’m happy to just have the opportunity to be at home. I’m throwing things away, organizing [and] putting up suitcases. But I’m feeling great!”


– Kevin O’Donnell


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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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S&P, Nasdaq drop as consumer sentiment offsets jobs

NEW YORK (Reuters) - The S&P 500 and the Nasdaq slipped on Friday after consumer sentiment unexpectedly dipped, dampening early enthusiasm from a better-than-expected employment report.


The Thomson Reuters/University of Michigan's preliminary consumer sentiment index plunged to 74.5 in early December, the lowest level since August.


Wall Street opened higher after U.S. Labor Department data showed non-farm employment increased more than expected, with 146,000 jobs added in November.


"The gain was sharper than expected, particularly in light of the hurricane, so certainly that was a pleasant surprise. We'll take it," said Gordon Charlop, managing director at Rosenblatt Securities in New York.


The equity market has regained most of the ground it lost following President Barack Obama's re-election as markets turned their focus to the coming "fiscal cliff." Market response to the macroeconomic data remained muted as negotiations continued to command investor attention.


"We will just have to see overall how much of an effect one number can have on what is really a market that is pointing towards Washington and fiscal cliff negotiations," Charlop said.


U.S. House Speaker John Boehner said that talks this week with President Barack Obama produced no progress, and he renewed his demand that the president provide a new offer to avert the series of tax increases and spending cuts that are likely to hurt economic demand in 2013.


Still, the market's resilience - the S&P 500 is just 4.1 percent below the 2012 intraday high of 1,474.51 reached in mid-September - suggests investors still see a deal coming to fruition before long.


"I think the market has priced in an expectation that something may get done, and if it doesn't, it would be done shortly after January first, so I don't see any worries in the market," said Jeff Meyerson, head of trading for Sunrise Securities in New York.


The Dow Jones industrial average <.dji> rose 42.66 points, or 0.33 percent, to 13,116.70. The Standard & Poor's 500 Index <.spx> dipped 0.12 of a point, or 0.01 percent, to 1,413.82. The Nasdaq Composite Index <.ixic> lost 16.38 points, or 0.55 percent, to 2,972.89.


Amarin Corp shares slid 19.2 percent to $9.66 after the biopharmaceutical company raised $100 million in financing to help it launch its heart drug, Vascepa, but disappointed investors, who had hoped for a sale or partnership.


CombiMatrix Corp shares soared 180.2 percent to $5.52 after the company said two studies published in a medical journal favored technology it uses for prenatal diagnosis of genetic abnormalities over traditional technologies.


In contrast, shares of Netflix Inc gave up earlier gains and slipped 0.4 percent to $85.83 following news that the Securities and Exchange Commission was considering taking action against the company and its Chief Executive Reed Hastings for violating public disclosure rules with a Facebook post.


After falling nearly 10 percent so far this week, Apple Inc shares were down 2.5 percent at $533.59 on Friday.


(Additional reporting by Chuck Mikolajczak; Editing by Bernadette Baum and Jan Paschal)



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3 Charged With Plotting to Export Carbon Fiber to Iran





Three people have been charged with conspiring to illegally export to Iran and China a superstrong material called carbon fiber that can be used to make machines that can enrich uranium, federal prosecutors in Manhattan said on Wednesday.




Iran has been pursuing carbon-fiber technology for years, and has had difficulty in obtaining the material. Enriched uranium can be used as fuel for nuclear reactors and atom bombs.


Another man was charged in a purported scheme to illegally export to Iran via South Korea components for helicopters that could be used for military purposes, the authorities said.


Three of the four men have been arrested. One of them, Hamid Reza Hashemi, 52, a dual United States and Iranian citizen who runs a company in Tehran that the United States government says has been trying to obtain carbon-fiber technology, was arrested on Saturday at Kennedy International Airport as he entered the country, prosecutors said.


Another defendant, Peter Gromacki, 48, of Middletown, N.Y., was accused of arranging for the export of more than 6,000 pounds of carbon fiber from the United States to China via Belgium, in violation of federal law, the government said.


“The law prohibits the exportation of goods to Iran and certain goods to China,” said George Venizelos, who heads the Federal Bureau of Investigation’s New York office.


A third defendant, Amir Abbas Tamimi, 40, an Iranian accused in the purported helicopter-component deal, was arrested at Kennedy Airport in October, the authorities said. He and Mr. Hashemi are being held without bond, while Mr. Gromacki was released on bond, the government said.


The fourth defendant, Murat Taskiran, a Turk accused in the purported carbon-fiber scheme, has not yet been arrested.


The charges do not specify precisely what the government believes the carbon-fiber technology was going to be used for in Iran.


But Preet Bharara, the United States attorney in Manhattan, whose office is prosecuting the men, said “carbon fiber in the wrong hands poses a serious threat” to the national security of the United States.


“Two of these defendants are charged with arranging its export to Iran, where it most assuredly had the potential to end up in the wrong hands,” Mr. Bharara said.


The government charged that in March and April 2008, Mr. Hashemi and Mr. Taskiran worked with an unidentified European broker to arrange for the shipment of carbon fiber from the United States to Iran through Europe and Dubai.


Carbon fiber is used to make rotors for centrifuges, which are used to enrich uranium.


The government also charged that this year Mr. Hashemi sent messages to the European broker, indicating that he wanted to travel to the United States to see a carbon-fiber-winding machine that he wanted to buy. Such machines can be used to make the rotors.


Lawyers for the three men who have been arrested could not be reached for comment Wednesday evening.


William J. Broad contributed reporting.



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Demi Moore Dances Up a Storm at Miami Party















12/06/2012 at 12:30 PM EST







Lenny Kravitz, Demi Moore and Stacy Keibler


CelebrityVibe/Splash News Online


Demi Moore has officially arrived in Miami for Art Basel week – and from the looks of it, she's ready to party!

The actress, who may be in town to support her rumored beau, art dealer Vito Schnabel, 26, started her evening Wednesday at a private event at Alex Rodriguez's home. Arriving around 8 p.m., Moore, 50, was dressed in a short blueish-gray romper and funky black glasses. Sources tell PEOPLE that she seemed calm, friendly and relaxed.

"She didn't even have a drink in hand," a source added of Moore, who spent time in treatment earlier this year.

According to one guest, Moore spent much of her time at the party in close conversation with Stacy Keibler. "They seemed like good friends," the attendee said, adding that she also chatted with Owen Wilson and Martha Stewart.

Demi Moore Dances Up a Storm at Miami Party| Couples, Miami, Alex Rodriguez, Demi Moore, Lenny Kravitz, Stacy Keibler, Private Party

Lenny Kravitz and Demi Moore

Seth Browarnik / Startraks

When the A-Rod party came to a close around 10 p.m., Moore was still there – hanging out. But she soon headed to the Chanel Beachside BBQ at the Soho Beach House, where she again was talking with Keibler.

And as the evening progressed, Moore began to loosen up.

"Demi seemed to be dancing for the cameras," one party source said of the actress, who was surrounded by flashbulbs and was "acting flirty" with Lenny Kravitz. Another source at the party said Moore was drinking Red Bull, and: "Demi was wild and crazy and having the time of her life, in a world all of her own."

As for Schnabel, he was spotted at the party, though the two never posed for photos together. But according to an E! report, the two didn't hide their PDA, and were even making out during the party.

Perhaps they'll step out more publicly together on Thursday night when Schnabel is expected to throw his official party with Stavros Niarchos at the Wall/W Hotel.

• Reporting by LINDA MARX

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Celebrations planned as Wash. legalizes marijuana


SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.


Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.


Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.


"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."


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.


That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."


Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.


Officers will be advising people to take their weed inside, 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."


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" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.


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.


Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.


___(equals)


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


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Wall Street gains as Apple rebounds; fiscal talks eyed

NEW YORK (Reuters) - Stocks managed slight gains by midday on Thursday as Broadcom's upbeat guidance and a turnaround in Apple shares helped lift technology stocks, while investors monitored news from Washington for signs of progress on the "fiscal cliff" negotiations.


Apple erased initial losses of as much as 3.7 percent at the open, which briefly brought the market capitalization of the world's largest publicly traded company below $500 billion. By midday, Apple's stock was up 2.3 percent at $551.35 - a day after its worst drop in four years.


Tech stocks also got a lift from chipmaker Broadcom , up 2.2 percent at $33.06 a day after it forecast fourth-quarter revenue at the high end of its target range, citing slightly better-than-expected sales in its mobile business.


The S&P technology index <.gspt> gained 1 percent and ranked as the best performer among the S&P 500's 10 major sectors. The PHLX semiconductor index <.sox> rose 0.9 percent.


But budget discussions commanded center stage for investors. President Barack Obama said there could be a quick deal to avert the "fiscal cliff" - huge tax hikes and spending cuts set to begin in January, possibly driving the U.S. economy back into recession next year - if Republican leaders agree to raise tax rates for those making more than $250,000 a year.


While Republican leaders in the U.S. House of Representatives insist that raising tax rates on the rich is not negotiable, some GOP lawmakers now see it as inevitable to avoid the fiscal cliff.


"It's really being held hostage to (the fiscal cliff negotiations) and the stock action of Apple," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.


"We're back in the mode of there's a direct correlation between the market and Apple - traders seems to be focused on the movement of Apple, and what its impact is on the indices."


Without action from Congress in the next few weeks, tax cuts on capital gains and dividends will expire at the end of 2012.


The Dow Jones industrial average <.dji> gained 8.64 points, or 0.07 percent, to 13,043.13. The Standard & Poor's 500 Index <.spx> added 2.66 points, or 0.19 percent, to 1,411.94. The Nasdaq Composite Index <.ixic> climbed 19.82 points, or 0.67 percent, to 2,993.52.


Apple Inc's rank in China's smartphone market fell to No.6 in the third quarter as it faces tougher competition from Chinese brands, research firm IDC said on Thursday. Apple's 6.4 percent drop on Wednesday was its worst daily performance since December 2008 and dragged the Nasdaq Composite Index down 0.8 percent for the day.


Sirius XM Radio shares rose 1.8 percent to $2.83 after its board approved a $2 billion stock repurchase and declared a special dividend, giving a big payout to its largest shareholder, Liberty Media .


Garmin shares rose 4.7 percent to $41.56 after Standard & Poor's said it would add the navigation device maker to the S&P 500 index. Garmin will replace R.R. Donnelley & Sons after the close of trading on December 11.


(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Dispute Flares Over Energy Exploration in South China Sea





BEIJING — China and two of its neighbors, Vietnam and India, were locked in a new dispute on Tuesday over energy exploration in the South China Sea, a signal that Beijing plans to continue its hard line in the increasingly contentious waterway.




Vietnam accused a Chinese fishing boat of cutting a seismic cable attached to one of its vessels exploring for oil and gas near the Gulf of Tonkin, an act apparently intended to inhibit Vietnam from pursuing energy deposits.


Vietnam said Tuesday that in retaliation, it would send out new patrols, which would include the marine police, to guard against increasing encroachment by Chinese fishing boats in the South China Sea. India, which operates several joint ventures with Vietnam’s national energy company, Petro Vietnam, said it would consider sending navy vessels to protect its interests in the South China Sea.


The latest episode followed an announcement by Hainan Province in southern China last week that Chinese vessels would board and search ships in contested areas of the waterway, which includes vital shipping lanes through which more than a third of global trade moves.


The new tensions among China, Vietnam and India illustrate in stark terms the competition in the South China Sea for what are believed to be sizable deposits of oil and gas.


Some energy experts in China see the sea as an important new energy frontier close to home that could make China less dependent on its huge oil imports from the Middle East.


On Monday, China’s National Energy Administration named the South China Sea as the main offshore site for natural gas production. Within two years, China aims to produce 150 billion cubic meters of natural gas from fields in the sea, a significant increase from the 20 billion cubic meters produced so far, the agency said.


Earlier this year, China’s third-largest energy company, the state-owned China National Offshore Oil Corporation, began drilling with a rig in deep water in nondisputed waters off the southern coast of China.


The escalation in the South China Sea comes less than a month after Xi Jinping took office as China’s leader. Mr. Xi appears to have taken a particular interest in the South China Sea and the serious dispute between China and Japan over the islands known as Diaoyu in China and as Senkaku in Japan. Whether any of China’s most recent actions in the South China Sea were associated with Mr. Xi was not clear.


But Mr. Xi does lead a small group of policy makers clustered in the Maritime Rights Office, which serves to coordinate agencies within China, according to Zhu Feng, a professor of international relations at Peking University, and other Chinese experts. The unit is part of the office of the Foreign Affairs Leading Small Group, Mr. Zhu said. The leading small group, now headed by Mr. Xi, is widely believed to be China’s central policy-making group.


China’s Foreign Ministry reiterated on Tuesday that China opposed oil and gas development by other countries in disputed waters of the sea. China maintains that it has “undisputed” sovereignty over the South China Sea, and that only China is allowed to develop the energy resources.


“We hope that concerned countries respect China’s position and rights,” said the Foreign Ministry spokesman, Hong Lei.


Vietnam, which has long been wary of China but enjoys a relationship through its governing Communist Party, summoned the Chinese ambassador on Monday to protest the cutting of the seismic cable, the Vietnamese news media reported.


A Web site run by Petro Vietnam, the oil company, reported that the company’s exploration vessel Binh Minh 02 had its seismic cable severed by a Chinese fishing vessel on Friday. In May 2011, the Vietnamese authorities said a similar cable of the Binh Minh 02 was cut by three Chinese surveillance ships, resulting in weeks of anti-China protests in Hanoi.


In its decree on the new patrols, Vietnam said that civilian ships, supported by the marine police and a border force, would be deployed starting next month to stop foreign vessels that violate fishing laws in waters claimed by Vietnam.


A senior official of Petro Vietnam, Pham Viet Dung, was quoted in the Vietnamese news media as saying that large numbers of Chinese fishing boats, many of them substantial vessels, had recently entered waters claimed by Vietnam. The fishing vessels interfered with the operations of the oil company, he said.


India, whose state-run oil company, the Oil and Natural Gas Corporation, has a 45 percent interest in exploration with Petro Vietnam, also reacted strongly.


The head of the Indian Navy, Adm. D. K. Joshi, said that India was prepared to send navy vessels to protect its interests in the sea. “Now, are we preparing for it? Are we having exercises of that nature? The short answer is ‘yes,’ ” Admiral Joshi told reporters in India.


The most recent moves by China in the South China Sea have not won total support at home. Mr. Zhu, the professor, said he did not believe that China had become more assertive in the South China Sea.


But, he said, “the cable cutting is really unfriendly.”


Bree Feng contributed reporting.



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