EBay’s double tax base prompts calls for investigation

LONDON (Reuters) – Britain and Germany may have missed out on a combined $ 1 billion in sales tax since online marketplace eBay picked a tiny Luxembourg office as its base for EU sales, a shift that lawmakers say should now be investigated.

EBay’s nomination of Luxembourg unit eBay Europe Sarl – with a staff of nine – as its provider of services to EU clients allows it to charge customers in Europe a low rate of sales tax, often known as Value Added Tax, helping it to compete against rivals.

However, the unit doesn’t actually receive the money from sales. Instead, eBay said it continues to channel revenues through a Berne-based unit, allowing the company also to benefit from what Swiss tax lawyers say is the most competitive corporate income tax regime in Europe.

EU rules allow companies to establish subsidiaries in Luxembourg and levy VAT at Luxembourg’s low VAT rate on sales to customers across the bloc.

However, the rules also allow individual EU taxmen to challenge any claim to Luxembourg residence, and the right to charge Luxembourg VAT, in their domestic courts, if the taxman feels a Luxembourg-based subsidiary does not have sufficient staff or assets to support its claim to be the true supplier of goods or services.

Tax experts say eBay’s arrangement, which appears to give eBay the best of both income and sales tax worlds, could be open to challenge, and lawmakers in the UK and Germany want their taxmen to investigate.

“I hope that HMRC (UK tax authority Her Majesty’s Revenue and Customs) takes note … and takes prompt action,” said Margaret Hodge, member of parliament and chairman of the Public Accounts Committee (PAC), which monitors government finances.

“I will be seeking assurance that they are, next time we take evidence from HMRC,” she added. Officials from HMRC are due to testify to the PAC in early December as part of the committee’s investigation into tax matters.

Sven Giegold, member of the European Parliament for Germany’s Green Party, said he wanted the German tax authorities to “have a very critical look at this”.

It is common for companies to seek to reduce their tax bills, and a number of multinationals have established bases in Luxembourg so they can charge customers lower levels of VAT.

EBay said HMRC was aware of all its tax arrangements and that it was confident it met all its tax liabilities in the UK and elsewhere.

“In all countries and at all times, eBay is fully compliant with national, EU and international tax rules (including the OECD) including the remittance of VAT to the appropriate authorities,” an eBay spokesman said in an emailed statement.

The UK, German, French and Luxembourg tax authorities declined to comment on eBay, citing rules on taxpayer confidentiality.

LOWER THRESHOLD

Big companies’ tax practices have risen to the top of the political agenda in Europe in the past year, with lawmakers growing increasingly frustrated with the way in which companies such as search engine company Google pay almost no income tax in countries where they have billions of dollars in sales.

The companies escape liability for income taxes in countries like the UK by arguing the value created by their business, and therefore the location where the profit should be realized, is not the place where the customer resides, but rather in the location where the intellectual property underpinning the product or service is based.

Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said this was a valid economic argument and that if, for example, HMRC wants to claim more income tax from Google, it has to prove the company is generating more value in the UK than it is declaring.

This would require a thorough deconstruction of its business model and supply chain.

However, it is easier to establish liability to VAT, since this tax hinges simply on the location of the buyer and seller.

“The threshold is lower,” said Simon Newark, head of VAT at accountants UHY Hacker.

“There are a lot more aspects for HMRC to challenge in VAT than in direct (income) tax.”

For tax purposes, the EU deems eBay’s online platform an “electronically supplied service”, a category that also covers e-Books and music downloads.

Under EU rules, suppliers of such services based within the bloc are supposed to charge EU customers VAT at the rate prevailing in the country where the supplier is based.

A number of suppliers of electronic services, including Amazon.Com Inc and Apple Inc’s iTunes have established European headquarters in Luxembourg to enable them to charge customers lower VAT rates than prevail in their customers’ countries.

Luxembourg has traditionally charged the lowest standard VAT rates in the European Union. Its 15 percent rate compares with rates of 19-25 percent in most other EU members.

By charging customers VAT at Luxembourg’s rate eBay is better able to compete with rivals based elsewhere in the EU, such as Britain’s eBid, which must charge customers VAT at the standard UK rate of 20 percent.

However, to be entitled to charge Luxembourg rates, a company has to be able to prove in British, German or EU courts that it is genuinely based in the Grand Duchy.

Companies selling to EU customers from outside the EU – as eBay was until the 2007 nomination of eBay Europe Sarl as supplier to EU clients – must charge European customers VAT at the rate prevailing in the country where the customer resides, and to pay that VAT to the taxman in the customer’s country.

There is no definitive checklist that determines the true base of a company and any decision by a national court can be challenged in the European Court of Justice. In the UK, HMRC said it approached the matter on a case-by-case basis, and disputes are often resolved in court.

“HMRC will challenge any arrangements where it is claimed that supplies are made from a particular country but the business does not have the necessary resources to make those supplies,” a spokesman said.

EUROPE EXPANSION

EBay, which is headquartered in San Jose, California, moved into Europe in 1999 when it established eBay International in Berne. Switzerland’s low income tax regime for foreign companies was highly beneficial for the auction site. “We do have a very favorable international tax structure,” then-Chief Financial Officer Rajiv Dutta told analysts in 2002 when asked how the company managed to pay such low taxes on its non-U.S. income.

The Swiss base also meant, initially, that the company didn’t have to charge EU customers VAT. But in 2003, Brussels changed the rules, which forced eBay to charge EU sellers on its platform VAT based on their residence. The VAT gathered was remitted to the tax authority in the customer’s country.

Not all customers are charged VAT. Most medium-sized and big businesses are legitimately exempted from paying VAT on some purchases, such as eBay seller fees.

EBay’s Swiss-based European public relations head declined to say what portion of its EU customers were liable to be charged VAT. James Cordwell, equities analyst at Atlantic Equities, estimated that such customers accounted for 40-50 percent of sales in Europe.

Since the 2007 creation of its Luxembourg operation, eBay has had German fee revenues of $ 6.1 billion and UK revenues of $ 5 billion, its annual accounts show.

If the services were supplied from Switzerland or another non-EU country, and assuming only half of customers should have been charged VAT, EU rules would have obliged eBay to collect $ 580 million in VAT for the German taxman and $ 500 million in VAT for HMRC since 2007.

EBay’s entitlement to charge Luxembourg VAT on sales and to pay this to the Luxembourg taxman rests on being able to prove in court that eBay Europe Sarl is the provider of services to EU clients.

But despite German and UK fee income of $ 3.1 billion last year, eBay Europe Sarl recorded turnover of only 5 million euros in 2011.

John Hemming, an MP with the Liberal Democrats, the junior partner in the British coalition government, said the fact eBay’s sales revenues did not go through the Luxembourg unit undermined the claim that it was the true provider of services to EU clients.

“If it’s a real transaction, you would expect the money to pass with it, and not pass someplace else,” he said.

Rather than going to Luxembourg, the money generated from customers continues to go to Berne-based eBay International AG, a spokeswoman said.

When Reuters visited in mid November, staff at the Luxembourg office, just opposite the central post office, declined to discuss what operations the unit conducted for eBay.

A spokesman later said the office conducted activities including billing, data privacy, contracting, regulatory, management and some customer services operations.

By contrast, Amazon and iTunes do report their sales of ebooks and music downloads to EU customers through their Luxembourg units.

Prem Sikka, professor of accounting at Essex University, along with Newark and Roy-Chowdhury said a cash trail through a unit was one of the key factors used as evidence that the unit was the true supplier of a service.

UK and German tax authorities could argue that the shift in eBay’s supply base to Luxembourg from Berne was therefore not genuine. If successful, they could claim back the VAT lost.

EBay declined to say why it channeled sales through Switzerland. Tax advisors say the country can still offer some companies lower tax rates than other European low-tax jurisdictions such as Ireland and Luxembourg.

Indeed, EBay’s closest rival Amazon, which channels about half its non-U.S. earnings through Luxembourg, reported average income tax on overseas earnings of 6 percent in the past four years. EBay paid just 3 percent over the same period.

(Additional reporting by Brenda Goh; Editing by Will Waterman)

Tech News Headlines – Yahoo! News

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Dennis Quaid Files for Divorce, Seeks Joint Custody

By Mike Fleeman

11/30/2012 at 09:20 PM EST

Kimberly Buffington-Quaid and Dennis Quaid

Casey Rodgers/NBC/AP

Dennis Quaid is ready to end his marriage for good.

After his wife of eight years, Kimberly Buffington-Quaid, sought legal separation in October, the Vegas star filed Friday for divorce in Los Angeles Superior Court.

The actor requests joint physical and legal custody of their 4-year-old twins, Thomas and Zoe, and offers to pay spousal support, according to the petition.

This will be the third divorce for Quaid, 58, who was previously married to Meg Ryan and P.J. Soles.

Kimberly, a former real estate agent, initially filed for divorce in March. She
put the divorce on hold a month later, pulling the papers so they could work on their marriage, before then filing for separation.

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South Africa makes progress in HIV/AIDS fight

JOHANNESBURG (AP) — In the early 90s when South Africa's Themba Lethu clinic could only treat HIV/AIDS patients for opportunistic diseases, many would come in on wheelchairs and keep coming to the health center until they died.

Two decades later the clinic is the biggest ARV (anti-retroviral) treatment center in the country and sees between 600 to 800 patients a day from all over southern Africa. Those who are brought in on wheelchairs, sometimes on the brink of death, get the crucial drugs and often become healthy and are walking within weeks.

"The ARVs are called the 'Lazarus drug' because people rise up and walk," said Sue Roberts who has been a nurse at the clinic , run by Right to Care in Johannesburg's Helen Joseph Hospital, since it opened its doors in 1992. She said they recently treated a woman who was pushed in a wheelchair for 3 kilometers (1.8 miles) to avoid a taxi fare and who was so sick it was touch and go. Two weeks later, the woman walked to the clinic, Roberts said.

Such stories of hope and progress are readily available on World AIDS Day 2012 in sub-Saharan Africa where deaths from AIDS-related causes have declined by 32 percent from 1.8 million in 2005 to 1.2 million in 2011, according to the latest UNAIDS report.

As people around the world celebrate a reduction in the rate of HIV infections, the growth of the clinic, which was one of only a few to open its doors 20 years ago, reflects how changes in treatment and attitude toward HIV/AIDS have moved South Africa forward. The nation, which has the most people living with HIV in the world at 5.6 million, still faces stigma and high rates of infection.

"You have no idea what a beautiful time we're living in right now," said Dr. Kay Mahomed, a doctor at the clinic who said treatment has improved drastically over the past several years.

President Jacob Zuma's government decided to give the best care, including TB screening and care at the clinic, and not to look at the cost, she said. South Africa has increased the numbers treated for HIV by 75 percent in the last two years, UNAIDS said, and new HIV infections have fallen by more than 50,000 in those two years. South Africa has also increased its domestic expenditure on AIDS to $1.6 billion, the highest by any low-and middle-income country, the group said.

Themba Lethu clinic, with funding from the government, USAID and PEPFAR, is now among some 2,500 ARV facilities in the country that treat approximately 1.9 million people.

"Now, you can't not get better. It's just one of these win-win situations. You test, you treat and you get better, end of story," Mahomed said.

But it hasn't always been that way.

In the 1990s South Africa's problem was compounded by years of misinformation by President Thabo Mbeki, who questioned the link between HIV and AIDS, and his health minister, Manto Tshabalala-Msimang, who promoted a "treatment" of beets and garlic.

Christinah Motsoahae first found out she was HIV positive in 1996, and said she felt nothing could be done about it.

"I didn't understand it at that time because I was only 24, and I said, 'What the hell is that?'" she said.

Sixteen years after her first diagnosis, she is now on ARV drugs and her life has turned around. She says the clinic has been instrumental.

"My status has changed my life, I have learned to accept people the way they are. I have learned not to be judgmental. And I have learned that it is God's purpose that I have this," the 40-year-old said.

She works with a support group of "positive ladies" in her hometown near Krugersdorp. She travels to the clinic as often as needed and her optimism shines through her gold eye shadow and wide smile. "I love the way I'm living now."

Motsoahae credits Nelson Mandela's family for inspiring her to face up to her status. The anti-apartheid icon galvanized the AIDS community in 2005 when he publicly acknowledged his son died of AIDS.

None of Motsoahae's children was born with HIV. The number of children newly infected with HIV has declined significantly. In six countries in sub-Saharan Africa — South Africa, Burundi, Kenya, Namibia, Togo and Zambia —the number of children with HIV declined by 40 to 59 percent between 2009 and 2011, the UNAIDS report said.

But the situation remains dire for those over the age of 15, who make up the 5.3 million infected in South Africa. Fear and denial lend to the high prevalence of HIV for that age group in South Africa, said the clinic's Kay Mahomed.

About 3.5 million South Africans still are not getting therapy, and many wait too long to come in to clinics or don't stay on the drugs, said Dr. Dave Spencer, who works at the clinic .

"People are still afraid of a stigma related to HIV," he said, adding that education and communication are key to controlling the disease.

Themba Lethu clinic reaches out to the younger generation with a teen program.

Tshepo Hoato, 21, who helps run the program found out he was HIV positive after his mother died in 2000. He said he has been helped by the program in which teens meet one day a month.

"What I've seen is a lot people around our ages, some commit suicide as soon as they find out they are HIV. That's a very hard stage for them so we came up with this program to help one another," he said. "We tell them our stories so they can understand and progress and see that no, man, it's not the end of the world."

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Cliff fight may knock out December rally

NEW YORK (Reuters) - In normal times, next week's slew of U.S. economic data could be a springboard for a December rally in the stock market.

December is historically a strong month for markets. The S&P 500 has risen 16 times in the past 20 years during the month.

But the market hasn't been operating under normal circumstances since November 7 when a day after the U.S. election, investors' focus shifted squarely to the looming "fiscal cliff."

Investors are increasingly nervous about the ability of lawmakers to undo the $600 billion in tax increases and spending cuts that are set to begin in January; those changes, if they go into effect, could send the U.S. economy into a recession.

A string of economic indicators next week, which includes a key reading of the manufacturing sector on Monday, culminates with the November jobs report on Friday.

But the impact of those economic reports could be muted. Distortions in the data caused by Superstorm Sandy are discounted.

The spotlight will be more firmly on signs from Washington that politicians can settle their differences on how to avoid the fiscal cliff.

"We have a week with a lot of economic data, and obviously most of the economic data is going to reflect the effects of Sandy, and that might be a little bit negative for the market next week, but most of that is already expected - the main focus remains the fiscal cliff," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Concerns about the cliff sent the S&P 500 <.spx> into a two-week decline after the elections, dropping as much as 5.3 percent, only to rally back nearly 4 percent as the initial tone of talks offered hope that a compromise could be reached and investors snapped up stocks that were viewed as undervalued.

On Wednesday, the S&P 500 gained more than 20 points from its intraday low after House Speaker John Boehner said he was optimistic that a budget deal to avoid big spending cuts and tax hikes could be worked out. The next day, more pessimistic comments from Boehner, an Ohio Republican, briefly wiped out the day's gains in stocks.

On Friday, the sharp divide between the Democrats and the Republicans on taxes and spending was evident in comments from President Barack Obama, who favors raising taxes on the wealthy, and Boehner, the top Republican in Congress, who said Obama's plan was the wrong approach and declared that the talks had reached a stalemate.

"It's unusual to end up with one variable in this industry, it's unusual to have a single bullet that is the causal factor effect, and you are sitting here for the next maybe two weeks or more, on that kind of condition," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago.

"And that is what is grabbing the markets."

BE CONTRARY AND MAKE MERRY

But investor attitudes and seasonality could also help spur a rally for the final month of the year.

The most recent survey by the American Association of Individual Investors reflected investor caution about the cliff. Although bullish sentiment rose above 40 percent for the first time since August 23, bearish sentiment remained above its historical average of 30.5 percent for the 14th straight week.

December is a critical month for retailers such as Target Corp and Macy's Inc . They saw monthly retail sales results dented by Sandy, although the start of the holiday shopping season fared better.

With consumer spending making up roughly 70 percent of the U.S. economy, a solid showing for retailers during the holiday season could help fuel any gains.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, believes the recent drop after the election could be a market bottom, with sentiment leaving stocks poised for a December rally.

"The concerns on the fiscal cliff - as valid as they might be - could be overblown. When you look at a lot of the overriding sentiment, that has gotten extremely negative," said Detrick.

"From that contrarian point of view with the historically bullish time frame of December, we once again could be setting ourselves up for a pretty nice end-of-year rally, based on lowered expectations."

SOME FEEL THE BIG CHILL

Others view the fiscal cliff as such an unusual event that any historical comparisons should be thrown out the window, with a rally unlikely because of a lack of confidence in Washington to reach an agreement and the economic hit caused by Sandy.

"History doesn't matter. You're dealing with an extraordinary set of circumstances that could very well end up in the U.S. economy going into a recession," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"And the likelihood of that is exclusively in the hands of our elected officials in Washington. They could absolutely drag us into a completely voluntary recession."

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

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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General Assembly Grants Palestine Upgraded Status in U.N.

Damon Winter/The New York Times

The Palestinian Authority president, Mahmoud Abbas, center, was congratulated by Turkey’s foreign minister, Ahmet Davutoglu. More Photos »

UNITED NATIONS — More than 130 countries voted on Thursday to upgrade Palestine to a nonmember observer state of the United Nations, a triumph for Palestinian diplomacy and a sharp rebuke to the United States and Israel.

But the vote, at least for now, did little to bring either the Palestinians or the Israelis closer to the goal they claim to seek: two states living side by side, or increased Palestinian unity. Israel and the militant group Hamas both responded critically to the day’s events, though for different reasons.

The new status will give the Palestinians more tools to challenge Israel in international legal forums for its occupation activities in the West Bank, including settlement-building, and it helped bolster the Palestinian Authority, weakened after eight days of battle between its rival Hamas and Israel.

But even as a small but determined crowd of 2,000 celebrated in central Ramallah in the West Bank, waving flags and dancing, there was an underlying sense of concerned resignation.

“I hope this is good,” said Munir Shafie, 36, an electrical engineer who was there. “But how are we going to benefit?”

Still, the General Assembly vote — 138 countries in favor, 9 opposed and 41 abstaining — showed impressive backing for the Palestinians at a difficult time. It was taken on the 65th anniversary of the vote to divide the former British mandate of Palestine into two states, one Jewish and one Arab, a vote Israel considers the international seal of approval for its birth.

The past two years of Arab uprisings have marginalized the Palestinian cause to some extent as nations that focused their political aspirations on the Palestinian struggle have turned inward. The vote on Thursday, coming so soon after the Gaza fighting, put the Palestinians again — if briefly, perhaps — at the center of international discussion.

“The question is, where do we go from here and what does it mean?” Salam Fayyad, the Palestinian prime minister, who was in New York for the vote, said in an interview. “The sooner the tough rhetoric of this can subside and the more this is viewed as a logical consequence of many years of failure to move the process forward, the better.” He said nothing would change without deep American involvement.

President Mahmoud Abbas of the Palestinian Authority, speaking to the assembly’s member nations, said, “The General Assembly is called upon today to issue a birth certificate of the reality of the state of Palestine,” and he condemned what he called Israeli racism and colonialism. His remarks seemed aimed in part at Israel and in part at Hamas. But both quickly attacked him for the parts they found offensive.

“The world watched a defamatory and venomous speech that was full of mendacious propaganda against the Israel Defense Forces and the citizens of Israel,” Prime Minister Benjamin Netanyahu of Israel responded. “Someone who wants peace does not talk in such a manner.”

While Hamas had officially backed the United Nations bid of Mr. Abbas, it quickly criticized his speech because the group does not recognize Israel.

“There are controversial issues in the points that Abbas raised, and Hamas has the right to preserve its position over them,” said Salah al-Bardaweel, a spokesman for Hamas in Gaza, on Thursday.

“We do not recognize Israel, nor the partition of Palestine, and Israel has no right in Palestine,” he added. “Getting our membership in the U.N. bodies is our natural right, but without giving up any inch of Palestine’s soil.”

Israel’s ambassador to the United Nations, Ron Prosor, spoke after Mr. Abbas and said he was concerned that the Palestinian Authority failed to recognize Israel for what it is.

“Three months ago, Israel’s prime minister stood in this very hall and extended his hand in peace to President Abbas,” Mr. Prosor said. “He reiterated that his goal was to create a solution of two states for two peoples, where a demilitarized Palestinian state will recognize Israel as a Jewish state.

“That’s right. Two states for two peoples. In fact, President Abbas, I did not hear you use the phrase ‘two states for two peoples’ this afternoon. In fact, I have never heard you say the phrase ‘two states for two peoples’ because the Palestinian leadership has never recognized that Israel is the nation-state of the Jewish people.”

The Israelis also say that the fact that Mr. Abbas is not welcome in Gaza, the Palestinian coastal enclave run by Hamas, from which he was ejected five years ago, shows that there is no viable Palestinian leadership living up to its obligations now.

Jennifer Steinhauer contributed reporting from Washington, Isabel Kershner from Jerusalem, and Khaled Abu Aker from Ramallah, West Bank.

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Gabby Douglas: I Nearly Quit Gymnastics to Work at Chick-fil-A!

Gabrielle Douglas

By Kristen Mascia

11/30/2012 at 07:55 AM EST

Gabby Douglas (foreground) and her family, from left: sister Arielle, mother Natalie, brother Johnathan and sister Joyelle

Allison Michael Orenstein

Around this time last year, Gabby Douglas dropped a bomb on her coaches and family: She wanted to quit gymnastics – and maybe try getting a job at Chick-fil-A.

"What," she says now, "was I thinking?"

Of course, she didn't. And the rest is history.

Four months after becoming the first black woman ever to win Olympic gold in individual all-around gymnastics, Douglas, 16, is looking back on her magical year – one that includes a new memoir Grace, Gold, & Glory: My Leap of Faith, to be published Dec. 4, and excerpted exclusively in PEOPLE this week.

"My life has changed so much," says the bubbly former PEOPLE cover girl, who spent the morning before Thanksgiving chilling with her big sister, Arielle, 23, in her sweats and chatting with PEOPLE in her midtown Manhattan hotel. "It's been really fun."

Among the highlights: meeting her celebrity crush Ian Somerhalder, appearing on the VMAs and hobnobbing at the White House with the President.

"He was so down to earth," says Douglas.

These days, with two golds at home – and a bunch of great friends by her side – Douglas admits she has every reason to smile.

At their Manhattan hotel Nov. 20, Douglas and her teammates – who were in town to walk in the Macy's Thanksgiving Day Parade – spent a giggle-filled night playing Twister, eating snacks and watching videos on YouTube, including their fun new take on Psy's viral "Gangnam Style."

"They're like sisters," says Douglas of her teammates.

Now, before starting training again, Douglas says she'll be cherishing time at home in Virginia Beach, Va., with the other most important people in her life: mom Natalie Hawkins, 42, brother John, 18, and sisters Arielle and Joyelle, 19.

"I'm so thankful for them," says Douglas. "I feel so blessed."

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Kenya village of AIDS orphans hangs hopes on trees

NYUMBANI, Kenya (AP) — There are no middle-aged adults in the Kenyan village of Nyumbani. They all died years ago. Only the young and old live here.

The 938 children here all saw their parents die. The 97 grandparents saw their middle-aged children die. But put together, the bookend generations take care of one another.

UNAIDS says that as of 2011 an estimated 23.5 million people living with HIV resided in sub-Saharan Africa, representing 69 percent of the global HIV burden. Eastern and southern Africa are the hardest-hit regions.

Saturday is World AIDS Day.

Nyumbani is currently planting tens of thousands of trees for the fourth straight year in the hopes that the village will soon harvest the hardwood and become self-sustaining.

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Stock futures flat on "fiscal cliff" caution; data on tap

NEW YORK (Reuters) - Stock futures were little changed on Friday, the final trading day of the month, amid a cautious mood as investors kept their focus firmly on U.S. budget talks.

Trading has been choppy lately, as investors buy on sporadic dips in the market and react to mixed headlines out of Washington regarding progress in talks on averting the "fiscal cliff," spending cuts and tax hikes that will come into effect in the new year.

U.S. President Barack Obama plans to travel to a factory in Pennsylvania to press his case on raising taxes on the wealthy to narrow the deficit.

"Washington brinkmanship and a delay in reaching an agreement on the fiscal cliff are likely to rattle markets. These risks and uncertainties are likely to keep markets volatile," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC.

"However, we expect an agreement in Washington preventing the U.S. economy plunging over the cliff, and further stabilization in euro zone," Praveen said. "This, combined with the liquidity and interest rate tailwinds, should fuel a relief rally into 2012 year-end."

After a close relationship for several years, Facebook Inc and Zynga Inc revised terms of a partnership agreement between the companies; under the new pact, Zynga will have limited ability to promote its site on Facebook. Zynga shares were down 6.9 percent at $2.43 in premarket trading. Facebook shares were up 0.8 percent at $27.55.

Whole Foods Market Inc announced a special cash dividend of $2.00 per share. In expectation of higher dividend tax rates in 2013, companies have been shifting dividends or announcing special payouts to shareholders.

The U.S. Commerce Dept releases October personal income and consumption data at 8:30 a.m. ET (1330 GMT). Economists in a Reuters survey expect a 0.2 percent rise in income, and an unchanged reading for spending. In September, income grew 0.4 percent and spending was up 0.8 percent.

The Institute for Supply Management in Chicago releases November index of manufacturing activity at 9:45 a.m. (1445 GMT). A reading of 50.5 is expected, compared with 49.9 in October.

S&P 500 futures were flat and in line with fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 6 points, and Nasdaq 100 futures added 4.75 points.

Apple Inc's latest iPhone has received final clearance from Chinese regulators, paving the way for a December debut in a highly competitive market where the lack of a new model had severely eroded its share of product sales.

Japan's Nikkei average hit a seven-month closing high on Friday as a weaker yen, driven by expectations the Bank of Japan will act more boldly under a likely new government following December 16 elections, lifted the shares of exporters.

European shares were steady at 15-month highs as investors squared the books on the final trading day of the month, with all eyes on U.S. budget talks.

U.S. stocks finished higher on Thursday as investors bought on sporadic dips in a market roiled by conflicting comments from Washington on negotiations to avert the "fiscal cliff," automatic spending cuts and tax rises set to begin in 2013.

(Editing by Bernadette Baum)

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U.S. Is Weighing Stronger Action in Syrian Conflict

Francisco Leong/Agence France-Presse — Getty Images

Rebels in northern Syria celebrated on Wednesday next to what was reported to be a government fighter jet.

WASHINGTON — The Obama administration, hoping that the conflict in Syria has reached a turning point, is considering deeper intervention to help push President Bashar al-Assad from power, according to government officials involved in the discussions.

While no decisions have been made, the administration is considering several alternatives, including directly providing arms to some opposition fighters.

The most urgent decision, likely to come next week, is whether NATO should deploy surface-to-air missiles in Turkey, ostensibly to protect that country from Syrian missiles that could carry chemical weapons. The State Department spokeswoman, Victoria Nuland, said Wednesday that the Patriot missile system would not be “for use beyond the Turkish border.”

But some strategists and administration officials believe that Syrian Air Force pilots might fear how else the missile batteries could be used. If so, they could be intimidated from bombing the northern Syrian border towns where the rebels control considerable territory. A NATO survey team is in Turkey, examining possible sites for the batteries.

Other, more distant options include directly providing arms to opposition fighters rather than only continuing to use other countries, especially Qatar, to do so. A riskier course would be to insert C.I.A. officers or allied intelligence services on the ground in Syria, to work more closely with opposition fighters in areas that they now largely control.

Administration officials discussed all of these steps before the presidential election. But the combination of President Obama’s re-election, which has made the White House more willing to take risks, and a series of recent tactical successes by rebel forces, one senior administration official said, “has given this debate a new urgency, and a new focus.”

The outcome of the broader debate about how heavily America should intervene in another Middle Eastern conflict remains uncertain. Mr. Obama’s record in intervening in the Arab Spring has been cautious: While he joined in what began as a humanitarian effort in Libya, he refused to put American military forces on the ground and, with the exception of a C.I.A. and diplomatic presence, ended the American role as soon as Col. Muammar el-Qaddafi was toppled.

In the case of Syria, a far more complex conflict than Libya’s, some officials continue to worry that the risks of intervention — both in American lives and in setting off a broader conflict, potentially involving Turkey — are too great to justify action. Others argue that more aggressive steps are justified in Syria by the loss in life there, the risks that its chemical weapons could get loose, and the opportunity to deal a blow to Iran’s only ally in the region. The debate now coursing through the White House, the Pentagon, the State Department and the C.I.A. resembles a similar one among America’s main allies.

“Look, let’s be frank, what we’ve done over the last 18 months hasn’t been enough,” Britain’s prime minister, David Cameron, said three weeks ago after visiting a Syrian refugee camp in Jordan. “The slaughter continues, the bloodshed is appalling, the bad effects it’s having on the region, the radicalization, but also the humanitarian crisis that is engulfing Syria. So let’s work together on really pushing what more we can do.” Mr. Cameron has discussed those options directly with Mr. Obama, White House officials say.

France and Britain have recognized a newly formed coalition of opposition groups, which the United States helped piece together. So far, Washington has not done so.

American officials and independent specialists on Syria said that the administration was reviewing its Syria policy in part to gain credibility and sway with opposition fighters, who have seized key Syrian military bases in recent weeks.

“The administration has figured out that if they don’t start doing something, the war will be over and they won’t have any influence over the combat forces on the ground,” said Jeffrey White, a former Defense Intelligence Agency intelligence officer and specialist on the Syria military. “They may have some influence with various political groups and factions, but they won’t have influence with the fighters, and the fighters will control the territory.”

Jessica Brandt contributed reporting from Cambridge, Mass.

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Lindsay Lohan Arrested for Alleged Assault in Club

Update

By Stephen M. Silverman

UPDATED
11/29/2012 at 08:00 AM EST

• Originally published 11/29/2012 at 06:55 AM EST

Lindsay Lohan leaves the police precinct station in New York City

INF; Inset: Paul Morigi/WireImage

Lindsay Lohan was arrested and charged with third-degree assault at 4 a.m. Thursday in Manhattan' s Meatpacking District after an alleged altercation with a woman in a nightclub.

Det. Mark Nell of the NYPD told PEOPLE: "This morning at 4 a dispute broke out at Avenue located at 116 10th Avenue. A female 26-year-old assaulted a female 28-year old. Lindsay Lohan was arrested and charged with assault."

Asked what happened, Nell said, "She punched her in the face."

By 8 a.m., Nell said, Lohan "has now left the precinct and was given a desk appearance at a later date."

TMZ reports that Lohan, after telling the woman to give her some space, or words to the effect, reputedly punched the woman in the face.

New York's Daily News names the other woman as Tiffany Eve Mitchell, of West Palm Beach, Fla, who was at Avenue with her husband.

The paper also says she and Lohan were sitting in separate VIP sections when a scuffle erupted elsewhere in the club, and Mitchell possibly bumped into Lohan in order to avoid getting involved.

The other woman was not arrested or injured, according to WNBC News.

The alleged other woman, leaving the 10th Precinct

Splash News Online

There has been no comment from Lohan's publicist, but the New York Post quotes Lohan assistant Gavin Doyle, who apparently was at the club, as saying about the actress, "It's become a pastime to use her name and fame and blame things on her."

The Post also quotes a man believed to be Mitchell's husband. He reportedly said, "Lindsay Lohan got drunk and went crazy ... hit my wife."

Lohan currently is on informal probation for removing a necklace from a California jewelry store last year, and could face potential jail time if she is re-arrested.

• With reporting by LIZ McNEIL

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing surgery-linked infections is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million, the Joint Commission hospital regulating group and the American College of Surgeons announced Wednesday. The two groups directed the 2 1/2-year project.

Solutions included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Some hospitals used special wound-protecting devices on surgery openings to keep intestine germs from reaching the skin.

The average rate of infections linked with colorectal operations at the seven hospitals dropped from about 16 percent of patients during a 10-month phase when hospitals started adopting changes to almost 11 percent once all the changes had been made.

Hospital stays for patients who got infections dropped from an average of 15 days to 13 days, which helped cut costs.

"The improvements translate into safer patient care," said Dr. Mark Chassin, president of the Joint Commission. "Now it's our job to spread these effective interventions to all hospitals."

Almost 2 million health care-related infections occur each year nationwide; more than 90,000 of these are fatal.

Besides wanting to keep patients healthy, hospitals have a monetary incentive to prevent these infections. Medicare cuts payments to hospitals that have lots of certain health care-related infections, and those cuts are expected to increase under the new health care law.

The project involved surgeries for cancer and other colorectal problems. Infections linked with colorectal surgery are particularly common because intestinal tract bacteria are so abundant.

To succeed at reducing infection rates requires hospitals to commit to changing habits, "to really look in the mirror and identify these things," said Dr. Clifford Ko of the American College of Surgeons.

The hospitals involved were Cedars-Sinai Medical Center in Los Angeles; Cleveland Clinic in Ohio; Mayo Clinic-Rochester Methodist Hospital in Rochester, Minn.; North Shore-Long Island Jewish Health System in Great Neck, NY; Northwestern Memorial Hospital in Chicago; OSF Saint Francis Medical Center in Peoria, Ill.; and Stanford Hospital & Clinics in Palo Alto, Calif.

___

Online:

Joint Commission: http://www.jointcommission.org

American College of Surgeons: http://www.facs.org

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Stock futures hold gains after claims, GDP data

DEAR ABBY: My wife and I have been married for five years. I recently discovered that she made between 10 and 20 porn videos when she was 19. We got married when she was 27. We have four kids from two previous marriages.I am devastated. When I confronted her about it, she cried harder than I had ever seen. She said she was lost, and it's the biggest regret of her entire life.I understand how hard it can be to tell someone you have done something like this. I haven't led a perfect life either, and I have my own skeletons and things that I would never mention. But still, I can't get over this. ...

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Rebel Leaders in Congo Send Mixed Signals on Leaving Goma

Jerome Delay/Associated Press

A man said to be from a Rwandan rebel group was held Tuesday. Rwanda said fighters crossed from Congo and attacked a village.

NAIROBI, Kenya — Rebel leaders in the Democratic Republic of Congo sent out mixed signals on Tuesday, with some saying they were withdrawing troops from the strategic city of Goma, which they captured last week, while others maintained that such a pullout would occur only if the Congolese government met a lengthy list of demands.

On Tuesday night, Amani Kabasha, a rebel spokesman, said: “There are no conditions. We are withdrawing our troops starting tomorrow.”

But earlier Tuesday, Jean-Marie Runiga, head of the rebels’ political wing, said the rebels would leave Goma only if the Congolese government released political prisoners, investigated the murder of opposition supporters, dissolved the national election commission and convened a conference of opposition leaders and members of the Congolese diaspora — demands that the government immediately dismissed as a “farce.”

Perhaps equally worrisome, the Rwandan government said that 150 fighters from another renegade group crossed from Congo into Rwanda on Tuesday and attacked a village at dawn, setting off a battle with Rwandan troops. It was the first such incursion on Rwandan soil in years and added to the escalating tensions between Rwanda and Congo, neighbors that essentially went to war against each other twice in the 1990s.

Many Congo analysts have been expecting the rebels, who call themselves the M23, to eventually withdraw from Goma, one of the biggest cities in eastern Congo, because the rebels have only a few thousand troops and seem to be overstretched trying to defend all the territory they have seized in recent weeks.

Still, the capture of Goma severely damaged the credibility of President Joseph Kabila of Congo, setting off protests across the country, and it is not clear what his next move will be.

“This ain’t over yet,” said Jason Stearns, a well-regarded Congo analyst who runs a blog called Congo Siasa, or Congo politics.

“It will be difficult to find a compromise — the M23 deeply mistrust Kabila,” Mr. Stearns said, “while the Congolese government is wary of reintegrating their enemies yet again into the army.”

The M23 rebels began as a different rebel force — the National Congress for the Defense of the People or C.N.D.P. in French — before being integrated into Congo’s national army as part of a March 23, 2009, peace deal. This year, they reinvented themselves again into rebels, taking their name from the date of the unfulfilled peace accord.

Few analysts ever believed that the 2009 peace deal would stick because of the rebels’ links to Rwanda, which has a history of covertly fomenting rebellions in eastern Congo as a way to carve out a sphere of influence in one of the most mineral-rich areas of the world. Most of the M23’s top officers are Tutsi, the ethnic group that dominates Rwanda’s military and government, and the suspicion was that the Tutsi officers in the Congolese Army were actually taking their orders from Kigali, Rwanda’s capital, instead of Kinshasa, Congo’s capital.

The M23 rebels have made a major effort to promote non-Tutsi to civilian leadership positions, broadening their base of support and making them an even more pernicious threat to Mr. Kabila, who was already despised by many across Congo, suspected of stealing from public coffers while so many roads, bridges, hospitals and schools sink into rot.

A lingering question though is who actually is control of the organization. Despite handing out political posts to non-Tutsi like Mr. Runiga, who is referred to as “the president,” Tutsi military officers still call the shots. On Tuesday, it was the Tutsi officers who said that they were pulling out of Goma and that they would relocate their troops to 12 miles beyond the city, as called for in an agreement reached by several African heads of state trying to quell the Goma conflict.

The trouble with the M23 started this spring when Mr. Kabila, under pressure from Western governments, indicated he was going to arrest Bosco Ntaganda, a Congolese Tutsi general and former rebel commander nicknamed the Terminator, who is wanted by the International Criminal Court on war crimes charges. The Congolese government also planned to shake up the power structure of the troops in eastern Congo, which the M23 rebels said was a violation of the original 2009 deal.

The troops then mutinied and took over town after town, culminating in Goma’s capture last Tuesday.

Several rebel fighters have said that they never planned to stay in Goma, a city of as many as one million people, because ruling it would be a headache. But even if the M23 rebels depart Goma, many of their agents are likely to remain. Goma’s police force has been heavily infiltrated, as evidenced last week by Rwandan-speaking police officers strolling around in brand-new uniforms. Veteran police officers said that they had no idea who the new commanders were and that they suddenly popped up on Goma’s streets as the rebel soldiers were marching into town.

“All of us have been disarmed,” said one police officer who was frightened to have his name published. He said that only the new Rwandan-speaking officers were allowed to carry guns.

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Angus T. Jones's Video Surprises Two and a Half Men Set

By Mike Fleeman

11/28/2012 at 08:35 AM EST

After the Charlie Sheen tiger blood debacle, it would seem that nothing could shock the cast and crew of Two and a Half Men anymore.

Then came the Angus T. Jones video.

"This came as a surprise to most people. This isn't who he grew up as," a source on the show tells PEOPLE. "He's always been a good kid and he's very well-liked by everyone at the show."

The 19-year-old has blasted the CBS sitcom that pays him a reported $350,000 an episode, saying in a video posted on a religious website: "Please stop watching it. Please stop filling your head with filth."

The comments came during an apparent religious awakening for the actor in the Seventh-Day Adventist Church.

“We are happy that Angus has joined the Seventh-Day Adventist family and has found a place in which he feels comfortable to worship and grow his faith,” says George Johnson, a church spokesman. “Recently, Angus made some statements concerning his spiritual journey and expressed his views concerning the television program
Two and a Half Men.

"These comments are of a personal nature, reflecting his views after having undergone changes during his spiritual journey," Johnson continues. "We welcome him with open arms to the worldwide Seventh-Day Adventist Church family and are excited about his commitment to God through his recent baptism at his church."

Neither Jones nor reps for the show have spoken out.

The actor won't be on the set this week – which was previously planned because his character isn't involved in this episode.

"The cast was really surprised by the video," says a second source on set. "At first they didn't believe he'd say those things. ... He always has a great attitude, which is why everyone was surprised. He's friendly and talented and great at his job."

• Reporting by MONICA RIZZO, AILI NAHAS and MELODY CHIU

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CDC: HIV spread high in young gay males

NEW YORK (AP) — Health officials say 1 in 5 new HIV infections occur in a tiny segment of the population — young men who are gay or bisexual.

The government on Tuesday released new numbers that spotlight how the spread of the AIDS virus is heavily concentrated in young males who have sex with other males. Only about a quarter of new infections in the 13-to-24 age group are from injecting drugs or heterosexual sex.

The Centers for Disease Control and Prevention said blacks represented more than half of new infections in youths. The estimates are based on 2010 figures.

Overall, new U.S. HIV infections have held steady at around 50,000 annually. About 12,000 are in teens and young adults, and most youth with HIV haven't been tested.

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Online:

CDC report: http://www.cdc.gov/vitalsigns

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Stock futures off as investors worry about "fiscal cliff"

NEW YORK (Reuters) - Stock futures fell on Wednesday as investors grew more concerned about the lack of progress in U.S. budget talks to avoid looming spending cuts and tax hikes, setting the S&P 500 up for a third consecutive day of decline this week.

* Chief executives from top U.S. corporations, including Goldman Sachs , Deloitte LLP, and Caterpillar Inc , will meet with President Barack Obama on Wednesday to discuss U.S. fiscal problems, the White House said.

* Obama's meeting with influential leaders from the corporate world is part of his push for Congress to extend tax cuts for middle income Americans, one flashpoint in a standoff with Congress over a series of tax hikes and spending cuts that will go into effect next year if lawmakers and the president cannot come up with a deal to stop them.

* U.S. stocks slid on Tuesday in a choppy session, losing ground in the last hour before the close after Senate Majority Leader Harry Reid expressed disappointment that there has been "little progress" in dealing with the "fiscal cliff."

* S&P 500 futures were down 4.2 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 30 points, while Nasdaq 100 futures were up 6.25 points.

* Deep divisions at the Federal Reserve were on display on Tuesday, just two weeks before the U.S. central bank's next policy-setting meeting, with one top Fed official pushing for more easing, and another advocating limits. [ID:nL1E8MS0ZC] The Fed will release its Beige Book summary of regional economic conditions at 2 p.m. (1900 GMT).

* New home sales data is due at 10 a.m. Economists in a Reuters survey forecast a reading of 390,000 for October versus the previous reading of 389,000.

* U.S. retailer Costco Wholesale Corp is to pay a special dividend of $7.00, worth a total $3.0 billion to investors, it said when posting monthly same-store sales that beat forecasts.

* Microsoft Corp has sold 40 million Windows 8 licenses in the month since the launch, according to one of the new co-heads of the Windows unit, setting a faster pace than Windows 7 three years ago.

* Green Mountain Coffee Roasters Inc forecast quarterly and full year earnings well above analysts' expectations, helped by an expanded lineup of single-serve coffee makers and drinks, sending its shares up 22 percent in after-hours trade.

* Advanced Micro Devices Inc plans to sell and lease back its campus in Austin, Texas, to raise cash and fund its chipmaking business as it diversifies beyond the struggling PC industry into new markets.

* Nokia said on Wednesday that an arbitrator has ruled in its favor in a patent dispute with BlackBerry-maker Research In Motion over use of Nokia's patents related to wireless local access network technology.

* The European Commission gave the go ahead for Spain to overhaul its stricken nationalized banks on Wednesday and opened the door for nearly 40 billion euros in euro zone aid to be disbursed, offering hope for an end to Spain's banking crisis.

(Reporting By Angela Moon; Editing by Kenneth Barry)

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Egypt’s President Said to Limit Scope of Judicial Decree

Tara Todras-Whitehill for The New York Times

Egyptians at a burned-out school in Cairo on Monday before the funeral of an activist who was injured in a clash and died Sunday.

CAIRO — With public pressure mounting, President Mohamed Morsi appeared to pull back Monday from his attempt to assert an authority beyond the reach of any court. His allies in the Muslim Brotherhood canceled plans for a large demonstration in his support, signaling a chance to calm an escalating battle that has paralyzed a divided nation.

After Mr. Morsi met for hours with the judges of Egypt’s Supreme Judicial Council, his spokesman read an “explanation” on television that appeared to backtrack from a presidential decree placing Mr. Morsi’s official edicts above judicial scrutiny — even while saying the president had not actually changed a word of the statement.

Though details of the talks remained hazy, and it was not clear whether the opposition or the court would accept his position, Mr. Morsi’s gesture was another demonstration that Egyptians would no longer allow their rulers to operate above the law. But there appeared little chance that the gesture alone would be enough to quell the crisis set off by his perceived power grab.

Hundreds of opponents of Mr. Morsi protested in Tahrir Square on Tuesday, Reuters reported, with the crowd expected to grow in the late afternoon.

The presidential spokesman, Yasser Ali, said for the first time that Mr. Morsi had sought only to assert pre-existing powers already approved by the courts under previous precedents, not to free himself from judicial oversight.

He said that the president meant all along to follow an established Egyptian legal doctrine suspending judicial scrutiny of presidential “acts of sovereignty” that work “to protect the main institutions of the state.” The judicial council had said Sunday that it could bless aspects of the decree deemed to qualify under the doctrine.

Mr. Morsi had maintained from the start that his purpose was to empower himself to prevent judges appointed by former President Hosni Mubarak from dissolving the constituent assembly, which is led by his fellow Islamists of the Muslim Brotherhood’s Freedom and Justice Party. The courts have already dissolved the Islamist-led Parliament and an earlier constituent assembly, and the Supreme Constitutional Court was widely expected to rule against this one next week.

But the text of the original decree had exempted all presidential edicts from judicial review until the ratification of a constitution, not just those edicts related to the assembly or justified as “acts of sovereignty.”

Legal experts said that the spokesman’s explanations of the president’s intentions, if put into effect, would amount to a revision of the decree Mr. Morsi issued last Thursday. But lawyers said that the verbal statements alone carried little legal weight.

How the courts would apply the doctrine remained hard to predict. And Mr. Morsi’s opposition indicated it was holding out for far greater concessions, including the breakup of the whole constituent assembly.

Speaking at a news conference while Mr. Morsi was meeting with the judges, the opposition activist and intellectual Abdel Haleem Qandeil called for “a long-term battle,” declaring that withdrawal of Mr. Morsi’s new powers was only the first step toward the opposition’s goal of “the withdrawal of the legitimacy of Morsi’s presence in the presidential palace.” Completely withdrawing the edict would be “a minimum,” he said.

Khaled Ali, a human rights lawyer and former presidential candidate, pointed to the growing crowd of protesters camped out in Tahrir Square for a fourth night. “The one who did the action has to take it back,” Mr. Ali said.

Moataz Abdel Fattah, a political scientist at Cairo University, said Mr. Morsi was saving face during a strategic retreat. “He is trying to simply say, ‘I am not a new pharaoh; I am just trying to stabilize the institutions that we already have,’ ” he said. “But for the liberals, this is now their moment, and for sure they are not going to waste it, because he has given them an excellent opportunity to score.”

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Brad Pitt: Wedding Will Happen 'Soon'

By Tim Nudd

11/27/2012 at 07:50 AM EST

Brad Pitt and Angelina Jolie

Jim Ruymen/Landov

Put the champagne on ice. It appears Brad Pitt and Angelina Jolie's long-awaited wedding isn't far off – and that's from someone who would know.

"I am getting more pressure from my kids, and it is something I want to do within their lifetime, but I also feel like the time has come," Pitt said Monday night at the premiere of his new film, Killing Them Softly, in New York.

"The time is nigh," he added. "It's soon. I got a good feeling about it."

Pitt, 48, who has been in London filming World War Z this month, has been with Jolie, 37, for seven years. They have six children together – Maddox, 11, Pax, 8, Zahara, 7, Shiloh, 6, and 4-year-old twins Knox and Vivienne – and got engaged this past spring.

And yet, even with so much history together already, Pitt says the idea of tying the knot with his longtime partner is still hugely meaningful.

"We've had a family, we've raised the kids," he says. "I am surprised how much [marriage] meant to me once you had that."

• Reporting by K.C. BAKER

Brad opens up about his family, his life with Angelina and their wedding plans in the next issue of PEOPLE! Look for much more on newsstands Friday

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Bounce houses a party hit but kids' injuries soar

CHICAGO (AP) — They may be a big hit at kids' birthday parties, but inflatable bounce houses can be dangerous, with the number of injuries soaring in recent years, a nationwide study found.

Kids often crowd into bounce houses, and jumping up and down can send other children flying into the air, too.

The numbers suggest 30 U.S. children a day are treated in emergency rooms for broken bones, sprains, cuts and concussions from bounce house accidents. Most involve children falling inside or out of the inflated playthings, and many children get hurt when they collide with other bouncing kids.

The number of children aged 17 and younger who got emergency-room treatment for bounce house injuries has climbed along with the popularity of bounce houses — from fewer than 1,000 in 1995 to nearly 11,000 in 2010. That's a 15-fold increase, and a doubling just since 2008.

"I was surprised by the number, especially by the rapid increase in the number of injuries," said lead author Dr. Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children's Hospital in Columbus, Ohio.

Amusement parks and fairs have bounce houses, and the playthings can also be rented or purchased for home use.

Smith and colleagues analyzed national surveillance data on ER treatment for nonfatal injuries linked with bounce houses, maintained by the U.S. Consumer Product Safety Commission. Their study was published online Monday in the journal Pediatrics.

Only about 3 percent of children were hospitalized, mostly for broken bones.

More than one-third of the injuries were in children aged 5 and younger. The safety commission recommends against letting children younger than 6 use full-size trampolines, and Smith said barring kids that young from even smaller, home-use bounce houses would make sense.

"There is no evidence that the size or location of an inflatable bouncer affects the injury risk," he said.

Other recommendations, often listed in manufacturers' instruction pamphlets, include not overloading bounce houses with too many kids and not allowing young children to bounce with much older, heavier kids or adults, said Laura Woodburn, a spokeswoman for the National Association of Amusement Ride Safety Officials.

The study didn't include deaths, but some accidents are fatal. Separate data from the product safety commission show four bounce house deaths from 2003 to 2007, all involving children striking their heads on a hard surface.

Several nonfatal accidents occurred last year when bounce houses collapsed or were lifted by high winds.

A group that issues voluntary industry standards says bounce houses should be supervised by trained operators and recommends that bouncers be prohibited from doing flips and purposefully colliding with others, the study authors noted.

Bounce house injuries are similar to those linked with trampolines, and the American Academy of Pediatrics has recommended against using trampolines at home. Policymakers should consider whether bounce houses warrant similar precautions, the authors said.

___

Online:

Pediatrics: http://www.pediatrics.org

Trade group: http://www.naarso.com

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Stock futures flat on fiscal cliff, investors eye data

NEW YORK (Reuters) - Stock futures were little changed on Tuesday as worry over the threat to the economy posed by the "fiscal cliff" offset optimism from a deal to ease Greece's debt burden.

Market sentiment improved after European finance ministers and the International Monetary Fund clinched agreement late on Monday on reducing Greece's debt in a breakthrough to release urgently needed loans to keep Greece from defaulting.

But as Democrats and Republicans in Washington prepared to resume budget negotiations, futures cut gains to trade flat and the market reverted to a cautious stance.

S&P 500 futures were up 1.3 points and in line with fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 9 points, while Nasdaq 100 futures were up 5.75 points.

As of Monday's close, the S&P 500 was holding above the 1,400 level it retook last week. But volume continued to be weak as traders awaited any advance in talks between the Obama administration and Congress to avert a series of spending cuts and tax increases scheduled to begin next year. Last week, the broad index rose nearly 4 percent.

"Advancing volume trends have failed to surge during the S&P 500's 4 percent bounce from its November 16 low, suggesting recent strength can be attributed to a lack of selling pressure rather than fresh buying demand," said Ari Wald, analyst at the PrinceRidge Group in New York.

"We would like to see this spread turn positive to confirm an upward S&P 500 reversal," he said.

Government data on October durable goods orders showed a gauge of planned spending by businesses increased by the most in five months. But a fourth straight month of declines in shipments underscored the damage that fears of tighter fiscal policy next year are having on the economy. Market reaction to the Commerce Department was muted.

Standard & Poor's releases its S&P Case/Shiller Home Price Index for September at 9 a.m. (1400 GMT). Economists expect an adjusted 20 city index to rise 0.4 percent, versus a 0.5 percent increase in the previous month.

Conference Board releases November consumer confidence at 10 a.m. (1500 GMT). Economists expect a reading of 73.0, compared with 72.2 in October.

ConAgra Foods Inc will acquire Ralcorp, the largest private label food manufacturer in the U.S. for about $6.8 billion.

ConocoPhillips' partners in Kazakhstan's Kashagan field have 60 days to exercise pre-emption rights to prevent India's ONGC Videsh from buying an 8.4 percent stake in the project held by the U.S. company, the Indian firm's managing director said.

Europe is preparing to follow the United States in delaying the introduction of stricter rules on bank capital, while it lobbies for a rethink of the U.S. stance, EU sources said.

However, the head of the Basel Committee at the Bank of International Settlements told Reuters on Tuesday that the introduction of stricter capital rules for banks will go ahead as planned on January 1.

(Reporting By Angela Moon; Editing by Theodore d'Afflisio and Kenneth Barry)

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As Rebels Gain, Congo Again Slips Into Chaos

GOMA, Democratic Republic of Congo — The lights are out in most of Goma. There is little water. The prison is an empty, garbage-strewn wasteland with its rusty front gate swinging wide open and a three-foot hole punched through the back wall, letting loose 1,200 killers, rapists, rogue soldiers and other criminals.

Now, rebel fighters are going house to house arresting people, many of whom have not been seen again by their families.

“You say the littlest thing and they disappear you,” said an unemployed man named Luke.

In the past week, the rebels have been unstoppable, steamrolling through one town after another, seizing this provincial capital, and eviscerating a dysfunctional Congolese Army whose drunken soldiers stumble around with rocket-propelled grenades and whose chief of staff was suspended for selling crates of ammunition to elephant poachers.

Riots are exploding across the country — in Bukavu, Butembo, Bunia, Kisangani and Kinshasa, the capital, a thousand miles away. Mobs are pouring into streets, burning down government buildings and demanding the ouster of Congo’s weak and widely despised president, Joseph Kabila.

Once again, chaos is courting Congo. And one pressing question is, why — after all the billions of dollars spent on peacekeepers, the recent legislation passed on Capitol Hill to cut the link between the illicit mineral trade and insurrection, and all the aid money and diplomatic capital — is this vast nation in the heart of Africa descending to where it was more than 10 years ago when foreign armies and marauding rebels carved it into fiefs?

“We haven’t really touched the root cause,” said Aloys Tegera, a director for the Pole Institute, a research institute in Goma.

He said Congo’s chronic instability is rooted in very local tensions over land, power and identity, especially along the Rwandan and Ugandan borders. “But no one wants to touch this because it’s too complicated,” he added.

The most realistic solution, said another Congo analyst, is not a formal peace process driven by diplomats but “a peace among all the dons, like Don Corleone imposed in New York.”

Congo’s problems have been festering for years, wounds that never quite scabbed over.

But last week there was new urgency after hundreds of rebel fighters, wearing rubber swamp boots and with belt-fed machine guns slung across their backs, marched into Goma, the capital of North Kivu Province and one of the country’s most important cities.

The rebels, called the M23, are a heavily armed paradox. On one hand, they are ruthless. Human rights groups have documented how they have slaughtered civilians, pulling confused villagers out of their huts in the middle of the night and shooting them in the head.

On the other hand, the M23 are able administrators — seemingly far better than the Congolese government, evidenced by a visit in recent days to their stronghold, Rutshuru, a small town about 45 miles from Goma.

In Rutshuru, there are none of those ubiquitous plastic bags twisted in the trees, like in so many other parts of Congo. The gravel roads have been swept clean and the government offices are spotless. Hand-painted signs read: “M23 Stop Corruption.” The rebels even have green thumbs, planting thousands of trees in recent months to fight soil erosion.

“We are not a rebellion,” said Benjamin Mbonimpa, an electrical engineer, a bush fighter and now a top rebel administrator. “We are a revolution.”

Their aims, he said, were to overthrow the government and set up a more equitable, decentralized political system. This is why the rebels have balked at negotiating with Mr. Kabila, though this weekend several rebels said that the pressure was increasing on them to compromise, especially coming from Western countries.

On Sunday, rebel forces and government troops were still squared off, just a few miles apart, down the road from Goma.

The M23 rebels are widely believed to be covertly supported by Rwanda, which has a long history of meddling in Congo, its neighbor blessed with gold, diamonds and other glittering mineral riches. The Rwandan government strenuously denies supplying weapons to the M23 or trying to annex eastern Congo. Rwanda has often denied any clandestine involvement in this country, only to have the denials later exposed as lies.

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Facebook not so fun with a click from boss or mum

LONDON (Reuters) – Posting pictures of yourself plastered at a party and talking trash online with your Facebook friends may be more stress than it’s worth now that your boss and mum want to see it all.

A survey from Edinburgh Business School released on Monday showed Facebook users are anxious that all those self-published sins may be coming home to roost with more than half of employers claiming to have used Facebook to weed out job candidates.

“Facebook used to be like a great party for all your friends where you can dance, drink and flirt,” said Ben Marder, author of the report and fellow in marketing at the Business School.

“But now with your Mum, Dad and boss there, the party becomes an anxious event full of potential social landmines.”

On average, people are Facebook friends with seven different social circles, the report found, with real friends known to the user offline the most common.

More than four-fifths of users add extended family on Facebook, a similar number add siblings. Less than 70 percent are connected to friends of friends while more than 60 percent added their colleagues online, despite the anxiety this may cause.

Facebook has settings to control the information seen by different types of friends, but only one third use them, the report said.

“I’m not worried at all because all the really messy pics – me, drunken or worse – I detag straight away,” said Chris from London, aged 30.

People were more commonly friends with former boyfriends or girlfriends than with current ones, the report also found.

(Reporting By Dasha Afanasieva, editing by Paul Casciato)

Tech News Headlines – Yahoo! News

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Prince Charles Is Impatient to Be King - Or Is He Joking?

By Andrea Billups

11/26/2012 at 08:45 AM EST

Prince Charles and Queen Elizabeth

Indigo/Getty; Abaca

Is the man who would be king tired of waiting his turn?

Speculation reigned in Great Britain this weekend after Prince Charles spoke of his "impatience" at an event to promote his 64th birthday at Dumfries House, a once-stately residence that the royal has worked to rehabilitate and save for his country.

"Impatient? Me? What a thing to suggest! Yes, of course I am," joked the Prince who passed his great-great grandfather Edward VII as the longest-waiting heir in his nation's history. "I'll run out of time soon. I shall have snuffed it if I'm not careful."

His mother, Queen Elizabeth, has served her country for 60 years and remains in good health at 86. Her own mother lived in be 101 in a genetic predisposition for longevity that could see Prince Charles cooling his heels for years longer as his sons, Princes William and Harry, grab the spotlight.

Although the Prince made his remarks as he was commenting at the Dumfries House gathering, royal observers say while he has praised his mother's longevity, it isn't the first time the prince has quipped about ascending the throne while he's still youthful.

British newspapers, in reporting his Dumfries House comments, noted that in 1992, when Prince Charles attended a funeral for his then father-in-law Earl Spencer, he confided to his brother-in-law Charles Spencer: "You are fortunate enough to have succeeded to the title when still young."

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AP PHOTOS: Simple surgery heals blind Indonesians

PADANG SIDEMPUAN, Indonesia (AP) — They came from the remotest parts of Indonesia, taking crowded overnight ferries and riding for hours in cars or buses — all in the hope that a simple, and free, surgical procedure would restore their eyesight.

Many patients were elderly and needed help to reach two hospitals in Sumatra where mass eye camps were held earlier this month by Nepalese surgeon Dr. Sanduk Ruit. During eight days, more than 1,400 cataracts were removed.

The patients camped out, sleeping side-by-side on military cots, eating donated food while fire trucks supplied water for showers and toilets. Many who had given up hope of seeing again left smiling after their bandages were removed.

"I've been blind for three years, and it's really bad," said Arlita Tobing, 65, whose sight was restored after the surgery. "I worked on someone's farm, but I couldn't work anymore."

Indonesia has one of the highest rates of blindness in the world, making it a target country for Ruit who travels throughout the developing world holding free mass eye camps while training doctors to perform the simple, stitch-free procedure he pioneered. He often visits hard-to-reach remote areas where health care is scarce and patients are poor. He believes that by teaching doctors how to perform his method of cataract removal, the rate of blindness can be reduced worldwide.

Cataracts are the leading cause of blindness globally, affecting about 20 million people who mostly live in poor countries, according to the World Health Organization.

"We get only one life, and that life is very short. I am blessed by God to have this opportunity," said Ruit, who runs the Tilganga Eye Center in Katmandu, Nepal. "The most important of that is training, taking the idea to other people."

During the recent camps, Ruit trained six doctors from Indonesia, Thailand and Singapore.

Here, in images, are scenes from the mobile eye camps:

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Stock futures down on jitters over Greece, fiscal cliff

NEW YORK (Reuters) - Stock futures fell on Monday as investor returned to the market after a holiday-shortened trading week, focused on the meeting of euro zone finance ministers on Greece and negotiations over the U.S. "fiscal cliff."

Euro zone finance ministers and the International Monetary Fund will seek to unfreeze the second bailout package for Greece on Monday, but they first need to agree if some of the official loans to Athens might eventually be forgiven to cut Greek debt.

U.S. lawmakers have made little progress in the past 10 days toward a compromise to avoid the harsh tax increases and government spending cuts scheduled for January 1, a senior Democratic senator said on Sunday.

"On the most pressing issue for the markets into year end, that of the tax and spending issues in the U.S., the Sunday morning talk shows didn't reveal that we're on the cusp of a deal as more horse trading will go on in the weeks to come," said Peter Boocvkar, managing director at Miller Tabak & Co in New York.

S&P 500 futures lost 6.5 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 44 points, and Nasdaq 100 futures dropped 8.5 points.

Knight Capital Group Inc is in talks about possibly selling its market-making operation, its largest and most profitable business, but it is not known if a deal will happen, sources familiar with the matter said on Saturday.

Apple Inc has asked a federal court to add six more products to its patent infringement lawsuit against Samsung Electronics Co , including the Samsung Galaxy Note II, in the latest in move in an ongoing legal war between the two companies.

U.S. shoppers went to stores earlier this Thanksgiving weekend and bought online more than in years past, giving retailers a strong start to the holiday shopping season, data showed on Sunday.

Black Friday's online sales topped $1 billion for the first time ever as more consumers used the Internet do their early holiday shopping, comScore Inc said on Sunday.

European equities inched lower following last week's strong rally in morning trade on Monday while the euro hovered near a one-month peak against the dollar as investors awaited the outcome of talks to provide a new tranche of emergency loans to Greece.

Over the weekend, separatist parties from Spain's Catalonia region won almost two-thirds of seats in the local parliament, backed by voters frustrated over the country's economic crisis and a tax system seen as unfair to the wealthy region.

European banks have asked the European Commission to postpone the introduction of tougher global bank capital rules by a year to 2014 after U.S. regulators delayed application of the new requirements.

U.S.-based stock funds suffered the most outflows since late July as U.S. lawmakers inched ahead in talks to avert the "fiscal cliff" of tax hikes and spending cuts set to occur in January, data from Thomson Reuters' Lipper service showed on Friday.

U.S. stocks rose for a fifth day during a holiday-shortened, thinly traded session on Friday as investors picked up recently beaten-down shares of large technology companies.

(Editing by W Simon and Kenneth Barry)

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