Five die in Egypt violence on anniversary of uprising


CAIRO/ISMAILIA, Egypt (Reuters) - Five people were shot dead in the Egyptian city of Suez during nationwide protests against President Mohamed Mursi on Friday, the second anniversary of the uprising that toppled Hosni Mubarak.


One of the dead was a member of the security forces, medics said. Another 280 civilians and 55 security personnel were injured, officials said, in demonstrations fuelled by anger at the president and his Islamist allies in the Muslim Brotherhood.


Thousands of opponents of Mursi massed in Cairo's Tahrir Square - the cradle of the revolt against Mubarak - to rekindle the demands of a revolution they say has been hijacked by Islamists who have betrayed its goals.


Street battles erupted in Cairo, Alexandria, Suez and Port Said. Arsonists attacked at least two state-owned buildings as symbols of government were targeted. An office used by the Muslim Brotherhood's political party was also torched.


The January 25 anniversary laid bare the divide between the Islamists and their secular rivals.


This schism is hindering the efforts of Mursi, elected in June, to revive an economy in crisis and reverse a plunge in Egypt's currency by enticing back investors and tourists.


Inspired by the popular uprising in Tunisia, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that had already triggered bloody street battles last month.


"Our revolution is continuing. We reject the domination of any party over this state. We say no to the Brotherhood state," Hamdeen Sabahy, a popular leftist leader, told Reuters.


The Brotherhood decided against mobilizing for the anniversary, wary of the scope for more conflict after December's violence, stoked by Mursi's decision to fast-track an Islamist-tinged constitution rejected by his opponents.


The Brotherhood denies accusations that it is seeking to dominate Egypt, labeling them a smear campaign by its rivals.


DEATH IN SUEZ


There were conflicting accounts of the lethal shooting in Suez. Some witnesses said security forces had opened fire in response to gunfire from masked men.


News of the deaths capped a day of violence which started in the early hours. Before dawn in Cairo, police battled protesters who threw petrol bombs and firecrackers as they approached a wall blocking access to government buildings near Tahrir Square.


Clouds of tear gas filled the air. At one point, riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by youths, a Reuters witness said.


Skirmishes between stone-throwing youths and the police continued in streets around the square into the day. Ambulances ferried away a steady stream of casualties.


Protesters echoed the chants of 2011's historic 18-day uprising. "The people want to bring down the regime," they chanted. "Leave! Leave! Leave!" chanted others as they marched towards the square.


"We are not here to celebrate but to force those in power to submit to the will of the people. Egypt now must never be like Egypt during Mubarak's rule," said Mohamed Fahmy, an activist.


There were similar scenes in Suez and Alexandria, where protesters and riot police clashed near local government offices. Black smoke billowed from tires set ablaze by youths.


In Cairo, police fired tear gas to disperse a few dozen protesters trying to remove barbed-wire barriers protecting the presidential palace, witnesses said. A few masked men got as far as the gates before they were beaten back.


Tear gas was also fired at protesters who tried to remove metal barriers outside the state television building.


Outside Cairo, protesters broke into the offices of provincial governors in Ismailia and Kafr el-Sheikh in the Nile Delta. A local government building was torched in the Nile Delta city of al-Mahalla al-Kubra.


BADIE CALLS FOR "PRACTICAL, SERIOUS COMPETITION"


With an eye on parliamentary elections likely to begin in April, the Brotherhood marked the anniversary with a charity drive across the nation. It plans to deliver medical aid to one million people and distribute affordable basic foodstuffs.


Writing in Al-Ahram, Egypt's flagship state-run daily, Brotherhood leader Mohamed Badie said the country was in need of "practical, serious competition" to reform the corrupt state left by the Mubarak era.


"The differences of opinion and vision that Egypt is passing through is a characteristic at the core of transitions from dictatorship to democracy, and clearly expresses the variety of Egyptian culture," he wrote.


Mursi's opponents say he and his group are seeking to dominate the post-Mubarak order. They accuse him of showing some of the autocratic impulses of the deposed leader by, for example, driving through the new constitution last month.


"I am taking part in today's marches to reject the warped constitution, the 'Brotherhoodisation' of the state, the attack on the rule of law, and the disregard of the president and his government for the demands for social justice," Amr Hamzawy, a prominent liberal politician, wrote on his Twitter feed.


The Brotherhood says its rivals are failing to respect the rules of the new democracy that put the Islamists in the driving seat via free elections.


Six months into office, Mursi is also being held responsible for an economic crisis caused by two years of turmoil. The Egyptian pound has sunk to record lows against the dollar.


The parties that called for Friday's protests list demands including a complete overhaul of the constitution.


Critics say the constitution, which was approved in a referendum, offers inadequate protection for human rights, grants the president too many privileges and fails to curb the power of a military establishment supreme in the Mubarak era.


Mursi's supporters say enacting the constitution quickly was crucial to restoring stability needed for economic recovery.


(Additional reporting by Ahmed el-Shemi, Ashraf Fahim, Marwa Awad, Shaimaa Fayed and Yasmine Saleh in Cairo and Abdel Rahman Youssef in Alexandria; Writing by Tom Perry; Editing by Robert Woodward)



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Yandex says new mobile app is blocked by Facebook






MOSCOW (Reuters) – Russian internet company Yandex said on Friday its new experimental application to search on social networking sites from mobile devices was blocked by Facebook.


The Wonder app is a recommendation tool for devices using Apple’s iOS software that allows U.S. users of social networks to retrieve information from these sites by voice or by typing questions.






The application was released late on Thursday for users of Facebook, Instagram, Foursquare and Twitter but was blocked by Facebook three hours after the launch, a Yandex spokesman said.


He added that talks between Yandex and Facebook, aimed to establish the reason of the issue and resolve it, were to begin within hours. He gave no reason for the problem.


Facebook was not available for comment.


With the new app, Yandex wants to test the opportunities offered by social networks. If successful, the company will consider offering it to users in Russia and Turkey, he said.


Shares in Yandex, Russia’s most popular search engine, gained 0.8 percent in early trade on Friday.


(Reporting by Maria Kiselyova; Editing by Mike Nesbit)


Internet News Headlines – Yahoo! News





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Screen Actors Guild Menu Focuses on Fresh, Local Food









01/25/2013 at 04:35 PM EST



How do you satisfy Hollywood's biggest stars – people with discerning palates, often strict diets and tight dresses?

That is the task before Los Angeles-based celebrity chef Suzanne Goin, who will cook up a seasonal, tasty meal for the A-listers attending Sunday's Screen Actors Guild Awards in Los Angeles.

"The challenge in this case is having that one plate that has three different dishes on it that need to all really work together," says Goin, who previewed the SAG Awards menu last week at her West Hollywood restaurant Lucques. "How do I do that? I use the produce and vegetables that are the most beautiful."

And Goin also keeps the occasion firmly in mind. "I want the plate to be festive and have a party feeling to it the way the awards actually do," adds the chef, who uses all seasonal and local ingredients from farmers she works with all year round. "These awards really feel like a party."

The calorie-conscious menu gives guests two choices. The vegetarian option includes a plate with a salad of beets, blood oranges, feta cheese and black olives; a serving of curried cauliflower, couscous and pomegranate salsa; and a hearty salad of farro with kale, young broccoli, currants and pine nuts.

The non-veggie plate includes melt-in-your-mouth slow roasted salmon with green rice and edible flowers; sliced beef tenderloin with horseradish cream; and the same tangy salad of beets and blood oranges.

Goin, who describes herself as nervous by nature when it comes to cooking for such a high-profile event, says the toughest part is the last 48 hours before the event. Because everything is made fresh, she and her staff "can't really cook until the last minute," she says. "The end is a real push and a crunch. ... But when you're done, it's the happiest moment."

Screen Actors Guild Menu Focuses on Fresh, Local Food| Screen Actors Guild Awards 2013, News Franchises

Salad of beets, blood oranges, feta cheese and black olives; a serving of curried cauliflower, couscous and pomegranate salsa; and a salad of farro with kale, young broccoli, currants and pine nuts.

John Sciulli / Getty

Roasted Beets & Blood Oranges with Feta and Black Olives

Ingredients
• 3 bunches of small to medium beets
• ¾ cup extra virgin olive oil
• 5 large blood oranges
• 2 tbsp. finely diced shallots
• 1 tsp. red wine vinegar
• 1 tbsp. lemon juice
• ½ cup Nyons olives of other strong-tasting oil-cured black olives, pitted
• 2 oz. arugula
• ¼ pound feta cheese
• Kosher salt and freshly ground pepper to taste

Directions
1. Preheat oven to 450
2. Cut the greens off beets, leaving about ½-inch of the stem still attached. Clean the beets well and toss them with 2 tablespoons of olive oil and 1 teaspoon of salt. Place the beets in a roasting pan with a splash of water in the bottom. Cover the pan tightly with foil and roast the beats about 40 minutes or until they're tender when pierced. When they're done, carefully remove the foil. Let cool and peel the beets by slipping off the skins with your fingers. Slice the beets into wedges and place in a large bowl.
3. Slice the stem and ends off four of the blood oranges. Stand them on one end and, following the contour of the fruit with your knife, remove the peel and white cottony pith. Work from the top and bottom, rotating the fruit as you go. Slice each orange thinly into 8 to 10 pinwheels.
4. Squeeze juice from remaining blood orange and reserve a ¼ cup for the vinaigrette.
5. Combine the diced shallot, vinegar, lemon juice, ¼ cup blood orange juice and ½ teaspoon salt in a small bowl, and let it sit 5 minutes. Whisk in remaining ½ cup olive oil and taste for seasoning.
6. Toss the beats with ¾ of the vinaigrette and a sprinkling of salt and pepper. Taste for seasoning. Gently toss in the olives and arugula.
7. Arrange half the salad on a platter. Tuck half the blood oranges in and around the beets and scatter half of the feta on top. Place the rest of the salad on top and nestle the remaining blood oranges into the salad and sprinkle the remaining feta on top.

Screen Actors Guild Menu Focuses on Fresh, Local Food| Screen Actors Guild Awards 2013, News Franchises

Sliced beef tenderloin with horseradish cream; slow roasted salmon with green rice and edible flowers; a salad of beets and blood oranges

John Sciulli / Getty

Beef Tenderloin with Fingerlings, Arugula and Horseradish Cream

Ingredients
• 4 lb. center-cut beef tenderloin, trimmed
• 2 tsp. cracked black pepper
• 1 Tbsp. rosemary leaves, plus 3 springs
• 1 Tbsp. thyme leaves, plus 6 springs
• 2 Tbsp. extra virgin olive oil
• 3 Tbsp. unsalted butter, sliced
• 2 oz. arugula
• Roasted fingerling potatoes (recipe follows)
• Horseradish cream (recipe follows)

Directions
1. Marinate the beef overnight with the black pepper, thyme leaves and rosemary.
2. Remove the meat from the refrigerator 1 hour before cooking. After 30 minutes, season the beef generously with kosher salt.
3. Preheat the oven to 300 degrees.
4. Heat a large cast iron or other heavy pan over high heat for 4 minutes. Drizzle 2 tablespoons of olive oil in the pan and place the beef in the pan. Sear until well browned and caramelized on all sides. Transfer to a rack set in a roasting pan and top with the sliced butter and the springs of thyme and rosemary. Place in the oven and cook about 50 minutes until the center reads 125 degrees on a meet thermometer.
5. Baste with the buttery-herby juices and let rest at least 12 minutes.
6. Slice into ½-inch thick pieces and serve with the fingerling potatoes, a few arugula leaves and a dollop of the horseradish cream on top.

For the roasted fingerling potatoes
• 1 lb. fingerling potatoes
• 3 Tbsp. extra virgin olive oil
• 3 cloves garlic, unpeeled and smashed
• 4 springs thyme
• 1 Tbsp. rosemary leaves

Directions
1. Preheat over to 450 degrees.
2. Toss the potatoes with the olive oil, garlic, thyme, rosemary and 1 teaspoon of kosher salt. Place in a roasting pan, cover with aluminum foil and roast for about 40 minutes until tender

For the horseradish sauce
• ¾ cup créme fraiche
• 1 Tbsp. prepared horseradish
• Kosher salt and black pepper

Directions
Combine the créme fraiche and horseradish in a small bowl. Season with ¼ teaspoon of salt and pepper. Taste for balance and seasoning.

The 19th Annual Screen Actors Guild Awards will air live on TNT and TBS on Sunday, Jan. 27, at 8 p.m. ET (5 p.m. PT) from the Shrine Auditorium in Los Angeles.

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Penalty could keep smokers out of health overhaul


WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.


The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.


For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.


Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.


Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.


Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.


Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.


Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.


"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.


"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.


Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.


"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."


Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.


First, the law allows insurers to charge older adults up to three times as much as their youngest customers.


Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.


And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.


Here's how the math would work:


Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.


But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.


"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.


In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.


Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.


"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."


___


Online:


Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx


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S&P 500 vaults 1,500 as earnings cheer Wall Street

NEW YORK (Reuters) - The S&P 500 index on Friday closed above 1,500 for the first time in more than five years as strong earnings reports, including Procter & Gamble's, helped the benchmark extend its rally to eight days.


The winning streak is the longest in eight years and left the S&P 500 about 4.1 percent away from its all-time closing high of 1,565.15 on October 9, 2007.


The equity market's strong start this year has been attributed to solid corporate results, an agreement in Washington to extend the government's borrowing power, encouraging signs from the global economy and seasonal inflows into stocks.


Procter & Gamble shares led the Dow and S&P higher with a 4 percent gain to $73.25 after the world's top household products maker's quarterly profit soared past expectations. The company also raised its sales and earnings outlook for the fiscal year.


Sales of new U.S. single-family homes fell in December but rose in 2012 to the highest level since 2009, a sign the U.S. housing market turned a corner last year.


"Economic data in the U.S. has been trending higher, albeit modestly. Things are incrementally better," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


"The market was able to move forward despite deterioration in Apple and that's also a positive."


The Dow Jones industrial average <.dji> rose 70.65 points or 0.51 percent, to 13,895.98, the S&P 500 <.spx> gained 8.14 points or 0.54 percent, to 1,502.96 and the Nasdaq Composite <.ixic> added 19.33 points or 0.62 percent, to 3,149.71.


The S&P 500 closed at its highest since December 10, 2007 and the Dow ended at its highest since October 31, 2007.


Apple shares dropped 2.4 percent to $439.88, and the iPhone maker lost its coveted title as the largest U.S. company by market capitalization to Exxon Mobil Corp .


Apple's market cap fell to $413 billion, down roughly $250 billion from its September peak. Apple's fall is about equal to the entire value of Google Inc .


Adding to the bullish tone, German business morale improved for a third consecutive month in January to its highest in more than six months. In addition, European banks said they will repay the European Central Bank much more than expected of the loans the bank gave them during the crisis.


"Good news in credit markets helps set the stage for (more investment in) riskier assets," Krosby said.


For the week, the Dow rose 1.8 percent, the S&P climbed 1.1 percent and the Nasdaq rose 0.5 percent. It was the fourth straight week of gains for all three indexes.


Helping to lift the Nasdaq on Friday, Starbucks , rose 4.1 percent to $56.81 after the coffee retailer reported stronger-than-expected sales in the United States and Asia. {ID:nL1N0ATH04]


Netflix added 15.5 percent to $169.56, following its massive 42.2 percent jump Thursday after it announced a surprise jump in subscribers to its video streaming service.


Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


Halliburton Co shares jumped 5.1 percent to $39.72 after the world's second-largest oilfield services company reported higher-than-expected earnings and sales for the fourth quarter.


About 6.2 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


On the NYSE, more than three issues rose for every two that fell and on Nasdaq five rose for every four decliners.


(Reporting by Rodrigo Campos; Editing by Kenneth Barry)



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Microsoft profit dips on lower Xbox holiday sales






SEATTLE (Reuters) – Microsoft Corp reported a dip in fiscal second-quarter profit on Thursday, as weaker sales of its Xbox game system in the holiday quarter offset a solid start for its new Windows 8 operating system.


The world’s largest software company reported profit of $ 6.4 billion, or 76 cents per share, compared to $ 6.6 billion, or 78 cents per share, in the year-ago quarter.






Overall sales rose 3 percent to $ 21.5 billion.


(Reporting by Bill Rigby; Editing by Richard Chang)


Gaming News Headlines – Yahoo! News





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Jenna Fischer Cried Tears of Joy over John Krasinski's Office Casting















01/24/2013 at 04:50 PM EST







Jenna Fischer and John Krasinski


Jason LaVeris/Filmmagic


It was love at first audition for Jenna Fischer and John Krasinski.

Fischer who plays Pam to Krasinski's Jim on The Office, isn't sure their characters would have become the fan-favorites they are if he hadn't been chosen to play her husband.

"I was paired up with John often and I thought this was good because he was my favorite Jim," Fischer, 38, explains on Thursday's episode of The Jeff Probst Show, says of the final round of eight actors – four Pams and four Jims.

"On the second day, John whispered to me, 'You're my favorite Pam. I hope you get it.' "

Needless to say, when the actress heard the news about her newly-casted costar, she was overjoyed.

"When they called me and said I got the role, I said, 'Who's Jim – did you cast John Krasinski?' " Fischer says. "They said, 'Yes' and I started crying because I knew it would be good. And I mean this honestly – I can't do Pam without him. In the way you need the right partner to have a great marriage, I needed the right costar to have this relationship.”

Getting the role that skyrocketed Fischer's career may indirectly be thanks to Alyson Hannigan, who – for once – didn't try out for the same part.

"I had been knocking around Los Angeles for about eight years going to various auditions. I would do eight auditions for a new television show and then at the very end they would offer the role to Alyson Hannigan," the actress admits.

"She was my biggest competition … I would get to the final audition and I'd go, 'I know I've got this one.' And then she'd walk in the door and I'd go, 'Nope.' "

Now that it's the beginning of the end for The Office – Thursday's episode will reveal the secrets behind the documentary crew filming at Dunder Mifflin all these years – can Fischer share any behind-the-scenes scoop?

"Around the holidays we do our online Christmas shopping. Phyllis [Smith] is hilarious – she pays her bills online, in the background," the actress reveals. "She brings in these stacks of papers and you see her over there, clicking on her bank. She's just paying bills."

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Penalty could keep smokers out of health overhaul


WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.


The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.


For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.


Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.


Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.


Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.


Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.


Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.


"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.


"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.


Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.


"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."


Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.


First, the law allows insurers to charge older adults up to three times as much as their youngest customers.


Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.


And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.


Here's how the math would work:


Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.


But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.


"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.


In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.


Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.


"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."


___


Online:


Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx


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S&P rises for seventh day but 1,500 too steep a climb

NEW YORK (Reuters) - The smallest of gains gave the Standard & Poor's 500 its seventh straight winning day on Thursday, but the index failed to hold above the 1,500 line, restrained by Apple's worst day in more than four years.


Apple Inc slid 12.4 percent to $450.50 a day after it posted revenue that missed Wall Street's forecast as iPhone sales were poorer than expected.


The sharp drop wiped out nearly $60 billion in Apple's market capitalization to less than $423 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second-place ExxonMobil , at $416.5 billion.


The S&P 500, however, managed to hit its longest winning streak since October 2006.


"The market has sent the message it is no longer driven by the whims of Apple," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.


The S&P 500 briefly traded above 1,500 for the first time since December 12, 2007, but failed to hold above it, indicating that momentum is waning and a pullback is in the charts.


"If the market had a little bit more excitement to it, momentum players would have jumped after it broke through 1,500. Investors know the market is a little bit ahead of itself," Polcari said.


Economic data helped buoy equities as U.S. factory activity grew the most in nearly two years in January and new claims for jobless benefits dropped to a five-year low last week, giving surprisingly strong signals on the economy's pulse.


At the same time, Chinese manufacturing grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a euro-zone recovery.


"PMI in Asia, Europe, and obviously, here in the United States, is moving in the right direction, and that's stuff people should be excited about," Polcari said.


The Dow Jones industrial average <.dji> rose 46 points or 0.33 percent, to 13,825.33 at the close. The S&P 500 <.spx> inched up just 0.01 of a point, or 0 percent, to finish at 1,494.82. The Nasdaq Composite <.ixic> dropped 23.29 points or 0.74 percent, to end at 3,130.38, with most of that loss on Apple's slide.


The broader Russell 2000 index <.rut> also hit a milestone as it closed above 900 points for the first time.


Video streaming service Netflix Inc surprised Wall Street with a quarterly profit after it added nearly 4 million customers in the United States and abroad. Netflix shares surged 42.2 percent to $146.86, its biggest percentage jump ever.


Earnings have helped drive the stock market's recent rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings so far, 66.9 percent have exceeded expectations - above the 65 percent average over the past four quarters.


About 6.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


Roughly five issues rose for every four that fell on both the NYSE and Nasdaq.


(Editing by Jan Paschal)



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Cameron promises Britons vote on EU exit


LONDON (Reuters) - Prime Minister David Cameron promised Britons a vote on quitting the European Union, rattling London's biggest allies and some investors by raising the prospect of uncertainty and upheaval.


Cameron announced on Wednesday that the referendum would be held by the end of 2017 - provided he wins a second term - and said that while Britain did not want to retreat from the world, public disillusionment with the bloc was at "an all-time high".


"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said in a speech, adding that his Conservative party would campaign for the 2015 parliamentary election on a promise to renegotiate the terms of Britain's EU membership.


"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."


A referendum would mark the second time British voters have had a direct say on the issue. In 1975, they decided by a wide margin to stay in, two years after the country had joined.


Most recent opinion polls have shown a slim majority would vote to leave amid bitter disenchantment, fanned by a hostile press, about the EU's perceived influence on the British way of life. However, a poll this week showed a majority for staying.


Cameron's position is fraught with uncertainty. He must come from behind to win the next election, secure support from the EU's 26 other states for a new British role, and hope those countries can persuade their voters to back the changes.


He also avoided saying exactly what he would do if he failed to win concessions in Europe, as many believe is likely.


Critics, notably among business leaders worried about the effect on investment, say that for years before a vote, Britain may slip into a dangerous and damaging limbo that could leave it adrift or effectively pushed out of the EU.


The United States, a close ally, is also uneasy about the plan, believing it will dilute Britain's international clout. President Barack Obama told Cameron last week that Washington valued "a strong UK in a strong European Union" and the White House said on Wednesday it believed Britain's membership of the EU was mutually beneficial.


Some of Britain's European partners were also anxious and told Cameron on Wednesday his strategy reflected a selfish and ignorant attitude. However, Angela Merkel, the leader of EU paymaster Germany, was quick to say she was ready to discuss Cameron's ideas.


FRENCH "NON"


French Foreign Minister Laurent Fabius was less diplomatic: "If Britain wants to leave Europe, we will roll out the red carpet," he quipped, echoing words Cameron used recently to urge France's rich to escape high taxes and move to Britain.


French President Francois Hollande repeated his refusal of special deals: "What I will say, speaking for France, and as a European, is that it isn't possible to bargain over Europe to hold this referendum," he said. "Europe must be taken as it is.


"One can have it modified in future but one cannot propose reducing or diminishing it as a condition of staying in."


Italian Prime Minister Mario Monti was more positive. He said he agreed with Cameron on the need to make the EU more innovative and welcomed the idea of a British referendum, saying he thought Britons would ultimately vote to stay in the bloc.


Billed by commentators as the most important speech of Cameron's career, his referendum promise ties him firmly to an issue that has bedeviled a generation of Conservative leaders.


In the past, he has been careful to avoid bruising partisan fights over Europe, an issue that undid the last two Conservative prime ministers, John Major and Margaret Thatcher.


His speech appeared to pacify a powerful Euroskeptic wing inside his own party, but deepen rifts with the Liberal Democrats, the junior partners in his coalition. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.


Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.


"BREXIT"?


Cameron said he would take back powers from Brussels, saying later in parliament that, when it came to employment, social and environmental legislation, "Europe has gone far too far".


But such a clawback - still the subject of an internal audit to identify which specific powers he should target for repatriation to London - is likely to be easier said than done.


If Cameron wins re-election but then fails to renegotiate Britain's membership of the EU, a 'Brexit' could loom.


Business leaders have warned that years of doubt over Britain's EU membership would damage the $2.5 trillion economy and cool the investment climate.


"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos. "This is a political decision. This is not an economic decision.


"This isn't good news. You added another reason why people will postpone investment decisions."


Cameron has been pushed into taking such a strong position partly by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in the opinion polls, mainly at the expense of the Conservatives.


"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.


Euroskeptics in Cameron's party, who have threatened to stir up trouble for the premier, were thrilled by the speech.


Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".


Whether Cameron holds the referendum remains as uncertain as the Conservatives' chances of winning the election. They trail the opposition Labour party in opinion polls, and the coalition is grappling with a stagnating economy as it pushes through unpopular public spending cuts to reduce a large budget deficit.


Labour leader Ed Miliband said on Wednesday his party did not want an in-or-out referendum.


EU REFORM


Cameron said he would campaign for Britain to stay in the EU "with all my heart and soul", provided he secured the reforms he wants. He made clear the Union must become less bureaucratic and focus more on free trade.


It was riskier to maintain the status quo than to change, he said: "The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.


Asked whether, if he did not succeed in his renegotiation strategy, would recommend a vote to take Britain out, he said only: "I want to see a strong Britain in a reformed Europe.


"We have a very clear plan. We want to reset the relationship. We will hold that referendum. We will recommend that resettlement to the British people."


Cameron said the euro zone debt crisis was forcing the bloc to change and that Britain would fight to make sure new rules were fair to the 10 countries that do not use the common currency, of which Britain is the largest.


Democratic consent for the EU in Britain was now "wafer thin", he said:


"Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union. But the question mark is already there: ignoring it won't make it go away."


A YouGov opinion poll on Monday showed that more people wanted to stay in the EU than leave it, the first such result in many months. But it was unclear whether that result was a blip.


Paul Chipperfield, a 53-year-old management consultant, said he liked the strategy: "Cameron's making the right move because I don't think we've had enough debate in this country," he said.


"We should be part of the EU but the EU needs to recognize that not everybody's going to jump on the same bandwagon."


Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success".


"I don't want Britain to leave the EU," he told parliament later. "I want Britain to reform the EU."


In the 1975 referendum, just over 67 percent voted to stay inside with nearly 33 percent against.


(Additional reporting by Paul Taylor in Davos, Alexandra Hudson in Berlin, Brenda Goh in London, Jeff Mason in Washington and James Mackenzie in Rome; Editing by Guy Faulconbridge, David Stamp and Alastair Macdonald)



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