Honda sees sharp drop in profit on Thai floods (AP)

TOKYO ? Battered by the strong yen and supply disruptions from Thailand's floods, Honda said Tuesday that its net earnings in the October-December quarter tumbled 41 percent to 47.6 billion yen ($625 million) and projected a sharply lower full-year profit.

It's been a tough year for the Japanese automobile and motorcycle maker. Honda had just begun to recover from the March earthquake and tsunami, which damaged some of its suppliers, when Thailand's worst floods in 50 years swamped its vehicle assembly plant in Ayutthaya, north of Bangkok.

That disaster dealt such a blow to Honda that it scrapped its earnings forecast when it last reported earnings results in October.

Now Honda predicts its net profit for the fiscal year through March would drop nearly 60 percent to 215 billion yen.

Honda Motor Co., which makes the Accord sedan and Odyssey minivan, stopped making cars at its Thai plant in October, and said in a statement Tuesday that it was making progress draining the factory and cleaning up equipment, and expected production to resume there at the end of March.

The flooding also disrupted the output at many Honda suppliers in Thailand, forcing it to reduce production as far away as the U.S. and Canada. Honda said production in neighboring Asian countries interrupted by the problems in Thailand was expected to return to normal by April.

All told, the problems related to flooding in Thailand have cost the company 260,000 vehicles in lost production worldwide, according to Tomohiro Okada, a company spokesman.

The company said it is working with the local industrial park to build water protection walls around the plant and will make requests of the Thai government to take steps to prevent the risk of flooding in the future. The Thai plant makes the Jazz, Civic, Accord, CR-V sports utility vehicle and other vehicles.

The Thai flooding affected many other Japanese companies, reflecting the increasingly interconnected nature of today's global economy. Toshiba Corp. on Tuesday cited the disaster as one reason behind the 10.6 billion yen net loss it reported for the most recent quarter.

A bright spot for Honda was its motorcycle business, which is booming in emerging markets. Motorcycle sales rose 6.3 percent during the quarter from the same quarter a year ago to nearly 3.1 million units.

Quarterly sales slid 8 percent during the fiscal third quarter to 1.942 trillion yen. The company projects full-year sales will decline 12.2 percent to 7.85 trillion yen.

The strong yen, which erodes exporters' foreign earned income when repatriated, also ate into the company's income.

Global vehicle sales in the quarter declined 2.9 percent from a year ago to 830,000 units, the company said. Vehicle sales in Japan rose 16 percent and North America increased 2 percent from the same quarter a year ago, while unit sales in Europe, Asia and other regions fell.

Source: http://us.rd.yahoo.com/dailynews/rss/asia/*http%3A//news.yahoo.com/s/ap/20120131/ap_on_bi_ge/as_japan_earns_honda

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Incomes up strong 0.5 pct., consumer spending flat (AP)

WASHINGTON ? Americans' income rose last month by the most in nine months, a hopeful sign for the economy after a year of weak wage gains. But consumer spending was unchanged.

Income rose 0.5 percent, the Commerce Department said Monday. It was the strongest increase since a similar gain in March.

The flat spending in December followed weak gains of 0.1 percent in both October and November.

The report underscored the challenge facing the economy in 2012. For all of 2011, income barely rose, while consumers dipped into their savings to spend more.

Unless income grows more rapidly, consumers will be forced to cut back further on spending. That would slow growth and result in less hiring.

Still, economists noted that income rose largely because of a strong month of hiring. The economy added 200,000 net jobs in December.

The best hope for the economy is more job growth. On Friday, the government is expected to report another solid month of hiring for January.

"The pace of job growth in recent months, while still not satisfactory compared to most past cycles, at least seems sufficient to generate enough income growth to keep consumer spending moving ahead at a modest pace," said Joshua Shapiro, chief U.S. economist at MFR, Inc.

After-tax income adjusted for inflation rose 0.3 percent in December. For the year, inflation-adjusted income rose 0.9 percent, just half the rise in 2010.

Inflation-adjusted consumer spending rose just 2.2 percent last year ? only slightly better than the increase in 2010.

The government reported Friday that the economy grew at an annual rate of 1.7 percent last year ? roughly half the growth of 2010. It was the weakest showing since the economy contracted 3.5 percent in 2009.

Unemployment stands at 8.5 percent ? its lowest level in nearly three years after a sixth straight month of solid hiring.

For the final three months of 2011, Americans spent more on vehicles, and companies restocked their supplies at a robust pace.

Consumer spending is closely watched because it accounts for 70 percent of economic activity.

Still, overall growth last quarter ? and for all of last year ? was slowed by the sharpest cuts in annual government spending in four decades. And many people are reluctant to spend more or buy homes, and many employers remain hesitant to hire, even though job growth has strengthened.

The outlook for 2012 is slightly better. The Federal Reserve has estimated economic growth of roughly 2.5 percent for the year, despite abundant risk factors: federal spending cuts, weak pay increases, cautious consumers and the risk of a European recession.

In December, spending on both durable and nondurable goods fell. Spending on services, a category that accounts for two-thirds of consumer spending, rose 0.2 percent.

The savings rate increased to 4 percent of after-tax incomes in December, up from 3.5 percent in November.

For the year, the savings rate dipped to 4.4 percent from 5.3 percent in 2010. The savings rate had fallen to 1.5 percent in 2005, reflecting a housing boom that made people feel like spending more and saving less.

The December report showed that prices tied to consumer spending edged up 0.1 percent in December and were up 2.4 percent compared to a year ago. This is the preferred inflation measure for the Federal Reserve.

The Fed last week established an annual inflation target of 2 percent.

Source: http://us.rd.yahoo.com/dailynews/rss/topstories/*http%3A//news.yahoo.com/s/ap/20120130/ap_on_bi_ge/us_consumer_spending

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Anthony D. Romero: The ACLU's Challenge to Newt and Mitt (Huffington post)

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29 Chinese missing after militant attack in Sudan (AP)

BEIJING ? Militants apparently captured 29 Chinese workers after attacking a remote worksite in a volatile region of Sudan, and Sudanese forces were increasing security for Chinese projects and personnel there, China said Sunday.

China has close political and economic relations with Sudan, especially in the energy sector.

The Foreign Ministry in Beijing said the militants attacked Saturday and Sudanese forces launched a rescue mission Sunday in coordination with the Chinese embassy in Khartoum.

The Ministry's head of consular affairs met with the Sudanese ambassador in Beijing and "urged him to actively conduct rescue missions under the prerequisite of ensuring the safety of the Chinese personnel," the statement said.

In Khartoum, a Chinese embassy spokesman said the northern branch of the Sudan People's Liberation Movement announced that 29 Chinese workers had been captured in the attack. The spokesman, who asked not be identified, gave no other details and it wasn't clear if the militants had demanded conditions for their return.

Other details weren't given. The official Xinhua News Agency cited the state governor as saying the Sudan People's Liberation Army attacked a road-building site in South Kordofan and seized the workers.

The Sudan People's Liberation Army are a guerrilla force loyal to the southern movement and hail from a minority ethnic group now in control of much of South Sudan, which became the world's newest country only six months ago in a breakaway from Sudan.

Sudan has accused South Sudan of arming pro-South Sudan groups in South Kordofan. The government of South Sudan has called such accusations a smoke screen intended to justify a future invasion of the South.

China has sent large numbers of workers to potentially unstable regions such as Sudan and last year was forced to send ships and planes to help with the emergency evacuation of 30,000 of its citizens from the fighting in Libya.

China has consistently used its clout in diplomatic forums such as the United Nations to defend Sudan and its longtime leader Omar al-Bashir. In recent years, it has also sought to build good relations with leaders from the south, where most of Sudan's oil is located.

Chinese companies have also invested heavily in Sudanese oil production, along with companies India and elsewhere.

___

Associated Press writer Mohamed Saeed contributed to this report from Khartoum.

Source: http://us.rd.yahoo.com/dailynews/rss/asia/*http%3A//news.yahoo.com/s/ap/20120129/ap_on_re_as/as_china_sudan

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Brazilian bikinis burgeon to fit the fat

In this photo taken Jan. 27, 2012, women shop for bikinis at a store in Rio de Janeiro, Brazil. A growing number of bikini manufacturers have woken up to Brazil's thickening waistline and are reaching out to the ever-expanding ranks of heavy women with new plus-size lines. (AP Photo/Felipe Dana)

In this photo taken Jan. 27, 2012, women shop for bikinis at a store in Rio de Janeiro, Brazil. A growing number of bikini manufacturers have woken up to Brazil's thickening waistline and are reaching out to the ever-expanding ranks of heavy women with new plus-size lines. (AP Photo/Felipe Dana)

In this photo taken Jan. 25, 2012, Elisangela Inez Soares rinses off at a shower in Copacabana beach in Rio de Janeiro, Brazil. A growing number of bikini manufacturers have woken up to Brazil's thickening waistline and are reaching out to the ever-expanding ranks of heavy women with new plus-size lines. According to Soares " not everyone is built like a model." (AP Photo/Felipe Dana)

In this photo taken on Jan. 25, 2012, Elisangela Inez Soares rinses off at a shower in Copacabana beach in Rio de Janeiro, Brazil. A growing number of bikini manufacturers have woken up to Brazil's thickening waistline and are reaching out to the ever-expanding ranks of heavy women with new plus-size lines. According to Soares " not everyone is built like a model." (AP Photo/Felipe Dana)

In this photo taken Jan. 27, 2012, people shop for bikinis at a store in Rio de Janeiro, Brazil. A growing number of bikini manufacturers have woken up to Brazil's thickening waistline and are reaching out to the ever-expanding ranks of heavy women with new plus-size lines. (AP Photo/Felipe Dana)

In this photo taken Jan. 24, 2012, people rinse off at the showers at Piscinao de Ramos, an artificial lake in Rio de Janeiro, Brazil. A growing number of bikini manufacturers have woken up to Brazil's thickening waistline and are reaching out to the ever-expanding ranks of heavy women with new plus-size lines. (AP Photo/Felipe Dana)

RIO DE JANEIRO (AP) ? Tall and tan and young and ... chunky?

The Girl From Ipanema has put on a few pounds, and for many sunbathers on Brazil's beaches the country's iconic itsy-bitsy, teeny-weeny bikini just doesn't suffice anymore.

A growing number of bikini manufacturers have woken up to Brazil's thickening waistline and are reaching out to the ever-expanding ranks of heavy women with new plus-size lines.

That's nothing short of a revolution in this most body-conscious of nations, where overweight ladies long had little choice but to hit the beach in comely ensembles of oversized T-shirts and biker shorts.

"It used to be bikinis were only in tiny sizes that only skinny girls could fit into. But not everyone is built like a model," said Elisangela Inez Soares as she sunbathed on Copacabana beach, her oiled-up curves packed into a black size 12 bikini.

"Finally, it seems like people are beginning to realize that we're not all Gisele," said the 38-year-old mother of four, referring to willowy Brazilian supermodel Gisele Bundchen.

Clothing designer Clarice Rebelatto said her own swimwear-hunting travails prompted her to found Lehona, an exclusively plus-size beachwear line.

"Honestly, the problem went way beyond just bikinis. In Brazil, it used to be that if you were even a little chunky, finding any kind of clothes in the right size was a real problem," said Rebelatto, herself a size 10. "And I thought, 'I'm actually not even that big compared to a lot of women out there, so if I have problems, what are they doing?'"

Since its launch in 2010, the line has become a hit.

In brash leopard spots and flower prints not meant for wallflowers, the label's 14 bikini styles aren't what you'd normally associate with plus-size swimsuits. The necklines plunge dramatically. Straps are mere strings. And while the bottoms provide too much coverage to qualify for the famed "fio dental" or "dental floss" category of Brazilian string bikinis, they're significantly more audacious than the standard U.S. cut.

"We're working from the principle that bigger women are just like everyone else: They don't want to look like old ladies, wearing these very modest, very covering swimsuits in just black," said Luiz Rebelatto, Clarice's son and director of Lehona.

He said that recent publicity of the brand and several other new swimwear lines catering to plus sizes has triggered an overwhelming number of calls and e-mails from would-be customers.

"They're all excited and they say, 'I've been looking everywhere for a bikini like that. Where can I get one?'" said Rebelatto.

Lehona is currently sold exclusively at big and tall specialty stores throughout Brazil. Its bikinis retail for about 130 reais or $75 ? a relatively high price-point here, but Rebelatto said sales have grown at a galloping pace, though he did not provide any figures.

It's the same story at Acqua Rosa, a conventional swimwear label that added a plus-size line in 2008. Now, plus-size purchases account for more than 70 percent of the brand's total sales, said director Joao Macedo.

It makes sense.

For centuries, large swaths of Brazil were beset by malnutrition, and in 1970, nearly 10 percent of the population in the country's poor, rural northeast region was considered underweight, according to Brazil's national statistics institute.

But the phenomenal economic boom that has lifted tens of millions out of poverty and into the burgeoning middle class over the past decade has also changed the nation's once-svelte physique: A 2010 study by the statistics institute showed that 48 percent of adult women and 50 percent of men are now overweight. In 1985 those figures were 29 percent for women and 18 percent for men.

(Still, there's been no rash of plus-size male swimwear lines, as men here wear Speedo-style suits that don't impinge on big guts.)

Analysts attribute Brazil's rapidly widening girth to changes in nutrition, with chips, processed meats and sugary soft drinks replacing staples like rice, beans and vegetables.

And while the country's elite are widely known to be fitness freaks ? and also among the world's top consumers of cosmetic surgery ? those recently lifted out of poverty and manual labor are becoming increasingly sedentary. A 2008 study showed that barely 10 percent of Brazilian teens and adults exercise regularly.

Still, despite their growing numbers, not everyone is eager to embrace "gordinhas" ? or "little fatties," as chunky women are affectionately known here.

Many high-end bikini-makers have turned a seemingly deliberately blind eye to the burgeoning plus-size market. Rio-based upmarket brand Salinas, for example, offers five sizes, from extra-small through extra-large. But their sizing runs notoriously small and it's hard to imagine anyone over a size 6 actually managing to fit into any of the brand's minuscule two-pieces.

Luis Rebelatto of Lehona chalked it partially up to snobbery.

"Some brands, they don't want their image to be associated with chunky women," he said. "Only the thin, the rich and the chic."

While Brazilians' increasing heft is a public policy preoccupation for the government, growth in the ranks of the overweight population has given them increased visibility in Brazilian society. Extra-wide bucket seats for the obese have been installed in Sao Paulo's metro system, and on Sunday the city will host Brazil's first ever Miss Plus Size beauty contest.

"It used to be that people would stare at me," said Soares, the voluptuous sun-worshiper on Copacabana beach. "Now when I come to the beach I see women who are much bigger than me ? and lots of them are wearing bikinis ? so I'm not self conscious any more.

"God makes some people thin but he made me like this," she said, rubbing down the well-oiled bulge of her stomach and thighs. "So who am I to think that he was wrong?"

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2012-01-28-LT-Brazil-Bulging-Bikinis/id-afb5e6b51ea54ad78b962a9ab4d30967

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Palin: Newt's secret weapon (Politico)

Newt Gingrich has a new unofficial campaign surrogate and her name is Sarah Palin.

As the 2008 veep nominee sees it, Gingrich is getting a raw deal from the national media and conservative elite, the very same forces who conspired against her when she was on the national ticket. Palin hasn?t endorsed Gingrich ? and has no official role in his campaign ? but she is repeatedly surfacing at just the right times on the national airwaves to vociferously defend him.

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Palin: Trying to 'crucify' Newt

In her latest appearance, Palin stated: ?Look at Newt Gingrich, what?s going on with him via the establishment?s attacks,? she said, though the original question was about Ron Paul. ?They?re trying to crucify this man and rewrite history and rewrite what it is that he has stood for all these years.?

Palin then called conservative writer Peggy Noonan ?hypocritical? for recently calling Gingrich an ?angry little attack muffin.?

?They maybe subscribe such characterization of Newt via words like that, but they don?t subscribe those to say Mitt Romney when he or his surrogates do the same thing,? she said. ?That?s that typical hypocrisy stuff in the media that I?ve lived with over a couple of decades in the political arena. So I?m used to it.?

?But in order to help educate the rest of the American public, I?ll articulate that it is hypocritical of the media to subscribe to one candidate and not another, that kind of angry attack muffin verbiage to one and not the other.?

Though she declined to run for president in 2012, Palin still has a devoted following among tea party conservatives. Despite her non-endorsement, her views on the race have become crystal clear as she has waged an insistent public campaign for Gingrich that can?t be mistaken for anything but support for the volatile speaker and his ideas. As has usually been the case with Palin, her exact motives remain a mystery. But it does seem like the two Republicans share a common bond in suspecting the media and Washington power brokers are biased against them.

When asked about Palin?s unofficial advocacy for him on Friday, Gingrich?s campaign had no comment.

But after Palin picked Gingrich in South Carolina, Gingrich spokesman R.C. Hammond told NBC News: ?We think it?s a pretty darn clear call to arms.?

Palin?s husband, Todd, backed Gingrich just days before he won South Carolina, and right afterward, the former vice presidential nominee touted Gingrich as the leader of the GOP pack.

Gingrich rarely employs the use of official surrogates, lacking the organization of Mitt Romney, who frequently dispatches supporters to make public appearances. A surrogate that is doing so voluntarily is a plus for a campaign that is struggling to fend off a barrage of attacks.

Source: http://us.rd.yahoo.com/dailynews/rss/politics/*http%3A//us.rd.yahoo.com/dailynews/external/politico_rss/rss_politico_mostpop/http___www_politico_com_news_stories0112_72096_html/44332378/SIG=11mlaovud/*http%3A//www.politico.com/news/stories/0112/72096.html

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The Electronic Communications Privacy Act (ECPA) Applies to Any ...

The US Court of Appeals has ruled that the ECPA, an American law, protects the data of non-USA citizens when their data is stored on servers in the USA.

Suzlon Case

Korean firm, Suzlon Energy Ltd, wanted Microsoft to disclose email documents belonging to an Indian citizen stored on a server in the USA. They argued that the emails were not protected from disclosure by the privacy protections of the ECPA, as these only applied to US citizens.

The US court determined that the ECPA covered ?any person? and not just a US citizen. Part of the reason for this was the impracticality of expecting Microsoft to assess whether or not account holders were US citizens, when receiving a disclosure request. Accordingly the court decided that the ECPA applied to any documents stored in the USA.

Increased Protection for Data?

Following this decision any data stored in the USA will be protected by the provisions of the ECPA, regardless of the citizenship of the data owner. This may help to alleviate some of the concerns being raised in Europe about the inadequacy of data protection provisions in the USA. However, if the server on which the data is stored is located outside of the USA the data will not be protected.

On a practical level, data owners often have no idea where their data is actually being stored, so this rule may be of little assistance in protecting their data. Also, service providers will need to know exactly where all data is stored in order to correctly respond to disclosure requests.

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Source: http://www.webanalyticsworld.net/2012/01/the-electronic-communications-privacy-act-ecpa-applies-to-any-data-stored-in-the-usa.html

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Exclusive: Sudan sells seized South Sudan crude at deep discount (Reuters)

SINGAPORE (Reuters) ? Sudan has sold at least one cargo of crude seized from South Sudan at millions of dollars discount and is offering more, industry sources said, as Khartoum looks to recover oil revenue from its former civil war foe.

A bitter row has escalated between the two over the value of the transit fee landlocked South Sudan should pay for oil pumped north by pipeline through its northern neighbor and exported from Port Sudan.

South Sudan is shutting down production in protest after Khartoum blocked exports and seized some of the oil as compensation. South Sudan's President Salva Kiir accused Khartoum of having "looted" revenues amounting to roughly $815 million from crude cargoes.

The seized crude was loaded onto three tankers from January 13-20, South Sudan's justice ministry said.

Sudan sold one of those cargoes, a 600,000 barrel shipment loaded on the vessel Ratna Shradha, to a North Asian trader. The final price of the sale was unclear, but one trader said that the cargo was sold at a discount as steep as $14 a barrel. That would indicate an $8.4 million discount for the whole cargo versus the last official price charged by the South.

"This is crude from the South sold by the North at a $14 discount to the South's last selling price," a Middle East-based crude trader said.

The tanker is heading to Singapore, another source said.

The last time South Sudan sold Nile Blend cargoes, it did so at a premium of $2.50-$3.00 a barrel to the benchmark Indonesian Crude Price, traders said. This would indicate that Sudan has sold the cargo at a discount of around $11 a barrel to the Indonesian price.

Sudan has also loaded two other cargoes of seized Dar Blend crude, but it is not immediately clear if they have sold those. Khartoum had offered these cargoes last week at a discount to official South Sudan prices, traders said. One of them is headed to the United Arab Emirates port of Fujairah, they added.

The South last sold seven cargoes of Dar Blend at discounts between $5 and $11 a barrel to dated Brent. Sudan offered the cargoes at a discount of $15-$16, another source said.

The lure of deeply discounted oil is probably outweighing the risks buyers face of any legal complications for purchasing the cargoes from Sudan.

Buyers could face private arbitration or even be dragged to the International Court of Justice, said a lawyer familiar with contract arbitration said, declining to be identified because he is not authorized to talk to the media.

OFFGUARD

Regular buyers of South Sudan oil were caught offguard when Khartoum started blocking exports in late December.

In addition to the three, at least seven tankers are still waiting at the port to lift December and January cargoes, raking up demurrage costs of $20,000-$22,000 per day, traders and shipbrokers said. Buyers include PetroChina, Glencore, Vitol, Trafigura and Arcadia, they said.

"There was no reason given. They just held back sailing," a second trader with a Western firm said, adding that demurrage costs and the uncertainty were a "nightmare."

South Sudan pledged to fully shut its output of 275,000 barrels per day (bpd) in two weeks, a move that could also cut off supplies to equity holders China National Petroleum Corp (CNPC), Malaysia's Petronas and India's Oil & Natural Gas Corp.

A third trader said buyers could declare force majeure if they still cannot lift the oil 30 days from the date of loading.

"Force majeure is the last resort if the cargo has not been loaded 30 days after the scheduled loading date. As long as the ship has not loaded the oil," the trader said.

"It will be complicated to declare force majeure if the oil is already on board. How are you going to discharge the oil back into the shore tanks?"

South Sudan became independent in July under a 2005 peace agreement with Khartoum that ended decades of civil war but both sides have failed to agree how to untangle their oil industries.

(Additional reporting by Yaw Yan Chong and Osamu Tsukimori in TOKYO Editing by Manash Goswami and Simon Webb)

Source: http://us.rd.yahoo.com/dailynews/rss/energy/*http%3A//news.yahoo.com/s/nm/20120127/wl_nm/us_sudan_oil_dispute

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Egypt bans travel for US official's son, 9 others

An Egyptian protester reads a local newspaper as he sits in Tahrir Square, in Cairo, Egypt, Thursday, Jan. 26, 2012. Egyptian protesters camp in Tahrir Square as they mark the first anniversary of the popular uprising that unseated President Hosni Mubarak. (AP Photo/Khalil Hamra)

An Egyptian protester reads a local newspaper as he sits in Tahrir Square, in Cairo, Egypt, Thursday, Jan. 26, 2012. Egyptian protesters camp in Tahrir Square as they mark the first anniversary of the popular uprising that unseated President Hosni Mubarak. (AP Photo/Khalil Hamra)

An Egyptian protester sleeps in Tahrir Square, in Cairo, Egypt, Thursday, Jan. 26, 2012. Egyptian protesters camp in Tahrir Square as they mark the first anniversary of the popular uprising that unseated President Hosni Mubarak. (AP Photo/Khalil Hamra)

An Egyptian protester prays next to a tent with a poster of a man killed by the security forces during the revolution with Arabic writing that reads " Shihab Al-Din Ahmed, the martyr of freedom", in Tahrir Square, in Cairo, Egypt, Thursday, Jan. 26, 2012. Egyptian protesters camp in Tahrir Square as they mark the first anniversary of the popular uprising that unseated President Hosni Mubarak. (AP Photo/Khalil Hamra)

An Egyptian protester sits in Tahrir Square, in Cairo, Egypt, Thursday, Jan. 26, 2012. Egyptian protesters camp in Tahrir Square as they mark the first anniversary of the popular uprising that unseated President Hosni Mubarak. (AP Photo/Khalil Hamra)

CAIRO (AP) ? Egypt banned at least 10 Americans and Europeans from leaving the country, including the son of U.S. Transportation Secretary Ray Lahood, hiking tensions with Washington over a campaign by Egypt's military against groups promoting democracy and human rights.

The United States warned Thursday that the campaign raised concerns about Egypt's transition to democracy and could jeopardize American aid that Egypt's battered economy needs badly after a year of unrest.

The travel ban was part of an Egyptian criminal investigation into foreign-funded democracy organizations after soldiers raided the offices of 10 such groups last month, including those of two American groups.

The investigation is closely intertwined with Egypt's political turmoil since the fall of Hosni Mubarak nearly a year ago. The generals who took power have accused "foreign hands" of being behind protests against their rule and they frequently depict the protesters themselves as receiving foreign funds in a plot to destabilize the country.

Egyptian opponents of the military say the generals are trying to smear the protesters in the eyes of the public and silence organizations they fear will undermine their managing of the country.

Also startling is the military's willingness to clash with its longtime top ally, the United States, over the issue, particularly since the army itself receives more than $1 billion a year from Washington. The December raids brought sharp U.S. criticism, and last week President Barack Obama spoke by telephone with Egyptian military chief Field Marshal Hussein Tantawi to emphasize "the role that these organizations can play in civil society," according to State Department spokeswoman Victoria Nuland on Thursday.

The ban became public after Sam LaHood, Egypt director of the Washington-based International Republican Institute, went to Cairo's airport Saturday to catch a flight and was told by an immigration official that he couldn't leave.

"I asked her why I was denied, she said she didn't know. I asked how to fix it, and she said she didn't know," said LaHood, 36. An hour later, a man in civilian clothes gave him back his passport and escorted him to the curb, LaHood said.

"It's a dark signal for groups who are interested in doing this kind of work," he said.

LaHood's father, a former congressman from Illinois, is the only Republican in Obama's Cabinet. The elder LaHood declined to comment.

The IRI was among the groups raided last month, along with the National Democratic Institute and a number of Egyptian organizations. Both American groups, linked to the political parties of the same name, monitored Egypt's recent parliamentary elections. In the raids, troops ransacked 17 offices of the 10 organizations around the country, carting away computers and documents.

The Egyptian government said the raids were part of a legitimate investigation into whether the groups were operating legally.

Sen. John McCain blasted Egypt's handling of the issue Thursday, warning that continued restrictions on civil society groups "could set back the long-standing partnership between the United States and Egypt."

IRI and NDI officials said they have been trying since 2005 to register as required by law, but were left in legal limbo, never officially denied nor granted permission. Both groups continued to operate while keeping authorities abreast of their activities, they said. Many Egyptian non-governmental organizations say officials often keep their groups in such limbo to maintain a threat over their heads.

Sam LaHood said he was told by his lawyer that he is under investigation on suspicion of managing an unregistered NGO and receiving "funds" from an unregistered NGO, namely, his salary.

Two other Americans and a European with IRI have also been banned from travel, Lahood said his lawyer had been told. From the National Democratic Institute, three Americans and three Serb employees are also on the list, according to its Egypt director Lisa Hughes.

Hughes, who is among those barred, said she has been interrogated for more than four hours about her group's work and that she had planned to fly to the U.S. next month before she heard about the ban.

"I think we would be silly not to be concerned," she said. "We were concerned the moment armed men showed up at our office door, and this has done nothing to calm those concerns."

The State Department's top human rights official, Michael Posner, told reporters in Cairo Thursday that such moves could jeopardize U.S. aid to Egypt, one of the biggest recipients.

"All need to have the ability to operate openly, freely, without constraint, not based on the content of their work," he said.

Posner pointed to recent U.S. legislation that blocks annual aid to Egypt unless it takes certain steps. These include abiding by its 1979 peace treaty with Israel, holding free and fair elections and "implementing policies to protect freedom of expression, association and religion and due process of law."

"Obviously, any action that creates tension between our governments makes the whole package more difficult," Posner said.

The U.S. is due to give $1.3 billion in military assistance and $250 million in economic aid to Egypt in 2012. Washington has given Egypt an average of $2 billion in economic and military aid a year since 1979, according to the Congressional Research Service.

Egypt's military has been locked in a confrontation for months with protesters who demand it immediately hand over power to civilians.

Hundreds of protesters camped Thursday in Cairo's central Tahrir Square, a day after several hundred thousand people massed there to mark the one-year anniversary of the 18-day anti-Mubarak uprising.

Thursday evening, hundreds moved from Tahrir and rallied in front of the state TV building, beating drums as they chanted for the "liberation" of state-run media from the military's control. They projected video footage of soldiers beating protesters onto the building.

State TV has been a mouthpiece of the military, broadcasting its accusations against protesters. Activists demand it be restructured as an independent media institution.

"The media is still manipulated and projects the same lies," said protester Mahmoud Ragab. "We will be here everyday to let them know it is a revolution."

___

Associated Press writer Sarah El Deeb contributed to this report.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/cae69a7523db45408eeb2b3a98c0c9c5/Article_2012-01-26-ML-Egypt/id-5b6fa1b968174c8a8a81712d020cbbb9

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Megaupload founder faces lengthy extradition battle (Reuters)

(Reuters) ? Efforts by the United States to extradite the mastermind of an alleged Internet piracy scheme from New Zealand to face copyright infringement and money laundering charges are likely to be long and complex.

Kim Dotcom, a German national also known as Kim Schmitz, will be held in custody in New Zealand until February 22 ahead of a hearing of a U.S. extradition application.

U.S. authorities claim Dotcom's file-sharing site, Megaupload.com, has netted $175 million since 2005 by copying and distributing music, movies and other copyrighted content without authorization. Dotcom's lawyers say the company simply offered online storage and that he will fight extradition.

"It could take some considerable time to get through the whole thing," said senior New Zealand lawyer Grant Illingworth, adding there were rights of appeal and procedural review to both sides.

Dotcom, 38, and three others, were arrested on Friday after a police raid at his rented country estate, reputedly New Zealand's most expensive home, at the request of the U.S. Federal Bureau of Investigation.

Under New Zealand's extradition law the prosecution must show there is enough evidence that would substantiate charges against Dotcom and the other accused of breaching local copyright laws.

"What the judge has to do is decide whether there is a prima facie case that would justify the person being put on trial if the offence had occurred in New Zealand," Illingworth said.

"If the evidence doesn't make out, what under New Zealand law amounts to a prima facie case, then the person walks away."

A 1970 extradition treaty between the United States and New Zealand gives the U.S. 45 days from the time of Dotcom's arrest to request extradition. The New Zealand Extradition Act, passed in 1999, gives the United States preferential status to access a streamlined process for making its request.

The judge who refused Dotcom bail said he could not assess whether the United States had a strong enough case against Dotcom, nor whether he had a good defense.

"All I can say is that there appears to be an arguable defense, at least in respect of the breach of copyright charges," Judge David McNaughton wrote in his judgment.

CIVIL MATTER

Copyright infringement and illegal file sharing are normally civil matters in New Zealand, but there is a provision for criminal charges and a maximum 5-year jail term for serious breaches.

Rick Shea, a partner at Lowndes Jordan in Auckland, said there were some differences between New Zealand and U.S. copyright law, in terms of knowledge, that could be an issue.

Douglas McNabb, a U.S. lawyer who specializes in extradition defense, said extraditions to the United States have to meet probable cause - the same standard that is required for making arrests in the United States.

Although the extradition hearing is not a test of guilt or innocence, McNabb said Dotcom's lawyers may argue they should be allowed a limited discovery process to show that probable cause has not been met.

Prime Minister John Key said the issues raised were serious and New Zealand would co-operate with the U.S. authorities.

"This is the largest, most significant case in Internet piracy so New Zealand is certainly going to work with the United States authorities to allow them to extradite Kim Dotcom," he said on TV3.

According to Shea, New Zealand has never had an extradition proceeding involving copyright law. "I wouldn't expect this to be sorted out quickly," he said.

AGGRESSIVE CHARGES

Anthony Falzone, Director for Copyright and Fair Use at Stanford Law School's Center for Internet and Society, said it was too early to comment on the strength of the case, but questioned whether some of the allegations in the indictment would actually push Megaupload outside the safe harbor provisions of the Digital Millennium Copyright Act.

The indictment "pushes some pretty aggressive theories", Falzone said.

The most recent Supreme Court case to deal with similar issues was in 2005. In MGM v Grokster, the U.S. court highlighted the importance of intent in determining if an Internet firm was liable for its users infringing copyright.

"A lot of the Megaupload case may also rise and fall on the question of intent," said Falzone.

With MGM, the court found the intent of the Internet company from the beginning was to build a tool to facilitate illegal sharing.

"Maybe that's what the Feds (FBI) think they have here, too," said Falzone.

(Reporting by Gyles Beckford in WELLINGTON and Rebecca Hamilton in NEW YORK; Editing by Lincoln Feast and Ian Geoghegan)

Source: http://us.rd.yahoo.com/dailynews/rss/internet/*http%3A//news.yahoo.com/s/nm/20120125/wr_nm/us_internet_piracy_megaupload_extradition

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Google is streamlining privacy policies, changes effective Mar. 1

Youtube link for mobile viewing

Google has announced that it is in the process of streamlining its privacy policy, combining more than 60 current documents for various products into one easy to read version, with less of the "legal gloop" and complicated language.  Starting March 1, users will no longer have a different privacy statement for the various Google offerings.  This makes sense to us, especially if the promises of a document that's easy to read and understand hold true.  It likely makes sense for regulators as well, as Google has been under the microscope about it's practices and privacy concerns.

Google's also saying this will lead to a simpler and more immersive user experience, where information from the suite of Google services can be combined to provide more relevant information while using Google branded products.  In the video above, they give the example of how it can improve search results.  Of course, it will also help target the right advertisements to each of us at the same time.

Google also wants to make it clear that they are not changing the basic elements of their privacy policies.  They still won't sell your personal information, and they don't share it without your express permission "except in very limited circumstances like a valid court order."   On the other hand, data about you can now be used across all services where it wasn't (couldn't?) before.  This isn't neccessarily "evil," but it opens things up for a bit deeper discussion and review.  In the end, Google is still going to be Google, and it sounds like the company's really only trying to simplify things for end users like us -- and at the same time making it easier for its own products to use what access you've already granted them. 

Source: Google

Source: http://feedproxy.google.com/~r/androidcentral/~3/TPlsYtsy9FM/story01.htm

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Megaupload boss says innocent, rival stops file-sharing (Reuters)

AUCKLAND (Reuters) ? The founder of file-sharing website Megaupload was ordered to be held in custody by a New Zealand court on Monday, as he denied charges of internet piracy and money laundering and said authorities were trying to portray the blackest picture of him.

Prosecutor Anne Toohey argued at a bail hearing that Kim Dotcom, a German national also known as Kim Schmitz, was a flight risk "at the extreme end of the scale" because it was believed he had access to funds, had multiple identities and had a history of fleeing criminal charges.

"The FBI believes the sums located are unlikely to represent all the overseas bank accounts owned by Mr Dotcom," she said.

But Dotcom's lawyer said he posed no threat of absconding or restarting his businesses, arguing that his client had cooperated fully, his passports had been seized and his funds frozen, and also that he had a distinctive appearance.

"He is not the sort of person who will pass unnoticed through our customs and immigration lines and controls," said defense lawyer Paul Davison of the former hacker, reportedly 2 meters (6ft 6ins) tall and weighing more than 130 kg (285 lbs).

Judge David McNaughton said the bail application was too complicated for an immediate ruling, adding he would issue a written decision no later than Wednesday.

"Given the breadth of issues covered in this bail application and the seriousness of the issues, I am going to reserve my decision," the judge said.

U.S. authorities want to extradite Dotcom on charges he masterminded a scheme that made more than $175 million in a few short years by copying and distributing music, movies and other copyrighted content without authorization. Megaupload's lawyer has said the company simply offered online storage.

Prosecutor Toohey said two other men sought on global warrants for involvement in Megaupload had been arrested in Europe.

The shockwaves of the case appeared to be spreading among rival websites offering lucrative file-sharing. FileSonic, a website providing online data storage, said in a statement on its website that it had halted its file-sharing services.

"All sharing functionality of FileSonic is now disabled. Our service can only be used to upload and retrieve files that you have uploaded personally," it said.

BARRICADED IN SAFE ROOM

Dotcom, 38, and three others, were arrested on Friday after New Zealand police raided his country estate at the request of the U.S. Federal Bureau of Investigation. Police cut Dotcom out of a safe room he had barricaded himself in, because, according to his layer, he was frightened and panicked.

Presenting the case for flight risk, the prosecutor said 45 credit cards in three wallets were found in the mansion under Dotcom's various names, while three passports were also found. But his defense lawyer said: "My client collects them (credit cards), most of them are out of date."

Dotcom smiled and waved at around 20 supporters who filled the courtroom and spoke to them after the judge's decision.

"Hey guys thanks for turning up, I appreciate it," he said, wishing a female supporter a "happy birthday".

Defense lawyer Davison said Dotcom was "realistic about what is happening".

"He would obviously prefer to be at large. He doesn't want to be there any longer than he absolutely has to be," he told reporters outside the court.

Media reported that Dotcom ordered around NZ$4 million ($3.2 million) of renovations to the sprawling mansion that he leased near Auckland, with its manicured lawns, fountains, pools, palm-lined paths and extensive security.

The case is being heard as the debate over online piracy reaches fever pitch in Washington, where Congress is trying to craft tougher legislation.

Lawmakers stopped anti-piracy legislation on Friday, postponing a critical vote in a victory for Internet companies that staged a mass online protest against the fast-moving bills.

The movie and music industries want Congress to crack down on Internet piracy and content theft, but major Internet companies such as Google and Facebook have complained that current drafts of the legislation would lead to censorship.

Critics of the U.S. Stop Online Piracy Act, or SOPA, and Protect IP Act (PIPA), quickly showed their opposition to the shutdown of Megaupload.com, with hackers attacking the public websites of the Justice Department, the world's largest music company Universal Music, and the two big trade groups that represent the music and film industries.

Dotcom's New Zealand lawyer Davison said in court that Megaupload's business was being misrepresented and authorities were being aggressive to add drama to the case.

"His business did not reproduce or copy material as alleged," he told the court, adding that copyright holders had been given access to Megaupload to identify improper posting of material. He likened the site to the popular YouTube video site, where people "promoted their creativity".

In New Zealand, questions are being asked about how Dotcom, who moved to the country in 2010, could be given permanent residency under a business investor scheme despite criminal convictions for insider trading.

LAVISH LIFESTYLE

A legal expert said extradition arrangements between New Zealand and the United States were reasonably straightforward and standard, but there were some important factors.

"The offence for which extradition is sought must be an offence in the jurisdictions of both states," said Otago University law professor Kevin Dawkins, adding that an accused must be tried on the offence for which they are extradited.

New details emerged about Dotcom's lavish lifestyle and tastes, with reports that he had a heated lap pool built just off the master ensuite, with underwater speakers, imported spring water and a custom ladder worth around NZ$15,000.

"It's insane, and it gets more insane inside. When we were there we called it 'extreme home makeover, millionaire edition'," a source close to the teams that did renovation work the New Zealand Herald.

A film posted on the Internet shows Dotcom, surrounded by topless women and men spraying champagne on board a superyacht during a "crazy weekend" in Monaco reported to have cost $10 million.

"Fast cars, hot girls, superyachts and amazing parties. Decadence rules," said the commentary accompanying the so-called fun documentary, which Dotcom dedicated to "all my fans".

The FBI estimates that Dotcom personally made around $115,000 a day during 2010 from his empire. The list of property to be seized, includes nearly 20 luxury cars, one of them a pink Cadillac, works of art, and NZ$10 million invested in local finance companies.

(Additional reporting by Gyles Beckford in Wellington and Ed Davies in Sydney; Editing by Ed Davies and Alex Richardson)

Source: http://us.rd.yahoo.com/dailynews/rss/internet/*http%3A//news.yahoo.com/s/nm/20120123/wr_nm/us_internet_piracy_megaupload

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Video: Crews set to remove oil from Italian wreck

>> italy where work at the site of the cruise ship disaster is entering a new phase today. nbc's michelle kosinski is on giglio island with details on that. good morning.

>> reporter: hey, matt. as we speak they are preparing to pump out all the fuel even as the latest count now shows 23 people still missing inside. the questions come up. why don't we see hundreds of searchers swarming every inch of the ship? they have been through almost all of it. they say the problem is the dark cluttered spaces under water. even from high above you see something unusual in the water. there, a table, furniture pulled out by divers who have been going in through holes they have blasted. just as dangerous. they wrangle heavy items with hooks, pull out endless lengths of water logged rope. inside find rooms jammed full of chairs this is what they feel their way through looking for a sign of the missing. other areas are completely submerged with debris everywhere. this is why it takes so long. divers say at times they can't see their hands in front of them, get bumped by objects floating by and must now bear a nearly overpowering stench of tons of food rotting in the ship's kitchen. air described as unbreathable. working late into the night .

>> translator: you have to watch for objects falling on you. we have the same situation in the kitchen area where there are lots of appliances.

>> reporter: but they make progress. yesterday recovered the bodies of two women near the internet cafe . one italian on her honeymoon who was wearing a life jacket but couldn't swim. it's been a problem knowing how many are missing. only around half of those found have been identified. it now appears one was a stowaway, which is unfounded. now while the grim work goes on for those believed still inside their families always waiting, it is time to try to prevent another disaster of an oil spill.

>> we are ready to go. we are ready to start working.

>> reporter: another daunting task, pumping out half a million gallons from enormous tanks finally begins today. it will take a month and a half. they think on saturday they will finally be able to drill into each tank, pump out the fuel and pump in seawater so the ship which now appears to be stable will stay that way. matt?

Source: http://video.today.msnbc.msn.com/today/46113346/

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Fulfill Your Dinosaur-Riding Fantasies for Only Fifty Bucks [Dinosaurs]

So far science has completely failed to deliver a real Jurassic Park. Hate to be the one to tell you this, but you'll never actually ride a Tyrannosaurus rex. Luckily, the geniuses at Dinoprints are really good at Photoshop. More »

Source: http://feeds.gawker.com/~r/gizmodo/full/~3/bzDec-1aJ4Q/

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Seal & Heidi Klum Head to Splitsville (omg!)

Another Hollywood power couple bites the dust.?The Insider?has confirmed that Seal and Heidi Klum are ending their six-year marriage.

The couple released a joint statement reading, "While we have enjoyed seven very loving, loyal and happy years of marriage, after much soul-searching we have decided to separate. We have had the deepest respect for one another throughout our relationship and continue to love each other very much, but we have grown apart. This is an amicable process and protecting the well-being of our children remains our top priority, especially during this time of transition. We thank our family, friends, and fans for their kind words of support. And for our children?s sake, we appreciate you respecting our privacy."

Five Things You Don't Know About Heidi Klum

Heidi, 38, and Seal, 48, were last seen together on December 26, when the Project Runway star tweeted a picture of herself with her Grammy winning husband vacationing in Aspen.

Heidi Klum Fashion Time Warp

Heidi, an avid tweeter, hasn't posted any personal messages to her account since the Golden Globe Awards, which she attended without her husband.

On January 20, Seal took to his Twitter account, writing, "The End" along with a picture of a tattoo.

The couple, who wed in Mexico on May 10, 2005, has four children together including Heidi's seven-year-old daughter from a previous relationship whom Seal adopted.

Source: http://us.rd.yahoo.com/dailynews/rss/entertainment/*http%3A//us.rd.yahoo.com/dailynews/external/omg_rss/rss_omg_en/news_seal_heidi_klum_head_splitsville050300204/44269230/*http%3A//omg.yahoo.com/news/seal-heidi-klum-head-splitsville-050300204.html

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Gingrich says he can 'shake up' nation's capital

Republican presidential candidate and former House Speaker Newt Gingrich is greeted by supporters after the mass at the Basilica of the National Shrine in Washington, Sunday, Jan. 22, 2012. (AP Photo/Jose Luis Magana)

Republican presidential candidate and former House Speaker Newt Gingrich is greeted by supporters after the mass at the Basilica of the National Shrine in Washington, Sunday, Jan. 22, 2012. (AP Photo/Jose Luis Magana)

TAMPA, Fla. (AP) ? Fresh off a big win in South Carolina, Republican Newt Gingrich found himself on defense Monday as the volatile GOP presidential contest shifted to Florida.

The former House speaker answered critics who questioned his temperament by saying he would be a nominee who would "shake up Washington." He also accused chief rival Mitt Romney of misstating his dealings with mortgage giant Freddie Mac.

Appearing on ABC's "Good Morning America" hours before a campaign rally in Tampa, Gingrich basked in his come-from-behind triumph in South Carolina. His win made for three different winners in the first three states, with former Sen. Rick Santorum winning Iowa and Romney taking New Hampshire.

Gingrich's campaign said it had raked in $1 million in the first 24 hours since South Carolina's primary Saturday.

Frequently the aggressor in the race, Gingrich is taking fire from all sides now as Florida campaigning ramps up ahead of the pivotal Jan. 31 primary.

Romney has been calling Gingrich a lobbyist and demanded that he release consulting contracts related to Freddie Mac. Gingrich flatly denied lobbying on the firm's behalf.

"It's not true. He knows it's not true. He's deliberately saying things he knows are false," Gingrich said. "I just think that's what the next week will be like.

The battle over financial transparency has gone both ways.

For weeks, Gingrich demanded that Romney release his personal tax records. The businessman and former Massachusetts governor now says he will.

Gingrich told ABC he has campaign lawyers working to make Freddie Mac records public; he said the decision rests with the Center for Health Transformation, which he founded but no longer owns. Two former Gingrich companies earned $1.6 million over eight years from Freddie Mac. Gingrich has said he only earned about $35,000 a year himself.

Gingrich's work for Freddie Mac has come under scrutiny because of its role in the housing meltdown.

On Sunday, some Republican leaders voiced worry about Gingrich's combative style.

He acknowledged Monday that some key players in the party don't want to see him win the nomination, but he also seems to be enjoying the attention.

"I think you're going to see the establishment go crazy in the next week or two," Gingrich said.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2012-01-23-Gingrich/id-117f4138308f4b3c99d835e14ab1dbd4

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Foxconn Responds To CEO?s ?Employees Are Animals? Comment

Foxconn responded to yesterday's kerfuffle about the CEO of Foxconn, Terry Gou, commenting that he cared for "a million animals" - namely his employees. They said it was an off-the-cuff remark, similar to saying that managing is like "herding cats" as opposed to suggesting that Foxconn employees walk on all fours and root in the mud. Big difference, clearly. The statement is below. I love the line "Mr. Gou?s comments were directed at all humans and not at any specific group."

Source: http://feedproxy.google.com/~r/Techcrunch/~3/TwLNw0ivWh0/

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Obama's State of the Union: Jobs, re-election time

President Barack Obama pauses before shaking hands at a campaign event, Thursday, Jan. 19, 2012, at the Apollo Theatre in the Harlem neighborhood of New York. (AP Photo/Haraz N. Ghanbari)

President Barack Obama pauses before shaking hands at a campaign event, Thursday, Jan. 19, 2012, at the Apollo Theatre in the Harlem neighborhood of New York. (AP Photo/Haraz N. Ghanbari)

President Barack Obama sings before speaking at a campaign event, Thursday, Jan. 19, 2012, at the Apollo Theatre in the Harlem neighborhood of New York. (AP Photo/Haraz N. Ghanbari)

President Barack Obama speaks at a campaign event, Thursday, Jan. 19, 2012, at the Apollo Theatre in the Harlem neighborhood of New York. (AP Photo/Haraz N. Ghanbari)

WASHINGTON (AP) ? Vilified by the Republicans who want his job, President Barack Obama will stand before the nation Tuesday night determined to frame the election-year debate on his terms, using his State of the Union address to outline a lasting economic recovery that will "work for everyone, not just a wealthy few."

As his most powerful chance to make a case for a second term, the prime-time speech carries enormous political stakes for the Democratic incumbent who presides over a country divided about his performance and pessimistic about the nation's direction. He will try to offer a stark contrast with his opponents by offering a vision of fairness and opportunity for everyone.

In a preview Saturday, Obama said in a video to supporters that the speech will be an economic blueprint built around manufacturing, energy, education and American values.

He is expected to announce ideas to make college more affordable and to address the housing crisis still hampering the economy three years into his term, people familiar with the speech said. Obama will also propose fresh ideas to ensure that the wealthy pay more in taxes, reiterating what he considers a matter of basic fairness, the officials said.

His policy proposals will be less important than what Obama hopes they all add up to: a narrative of renewed American security with him at the center, leading the fight.

"We can go in two directions," Obama said in the campaign video. "One is toward less opportunity and less fairness. Or we can fight for where I think we need to go: building an economy that works for everyone, not just a wealthy few."

That line of argument is intended to tap directly into concerns of voters who think America has become a nation of income inequality, with rules rigged to help the rich. The degree to which Obama or his eventual Republican opponent can better connect with millions of hurting Americans is expected to determine November's presidential election.

Obama released his video hours ahead of the South Carolina primary, where Republican candidates fought in the latest fierce contest to become his general election rival.

The White House knows Obama is about to get his own stage to outline a re-election vision, but carefully. The speech is supposed to an American moment, not a campaign event.

Obama didn't mention national security or foreign policy in his preview, and he is not expected to break ground on either one in his speech.

He will focus on the economy and is expected to promote unfinished parts of his jobs plan, including the extension of a payroll tax cut that is soon to expire.

Whatever Obama proposes is likely to face long odds in a deeply divided Congress.

More people than not disapprove of Obama's handling of the economy, and he is showing real vulnerability among the independent voters who could swing the election. Yet he will step into the moment just as the economy is showing life. The unemployment rate is still at a troubling 8.5 percent, but at its lowest rate in nearly three years. Consumer confidence is up.

By giving a sneak peek to millions of supporters on his email list, Obama played to his Democratic base and sought to generate an even larger audience for Tuesday's address. He is unlikely to getter a bigger stage all year.

More people watched last year's State of the Union than tuned in to see Obama accept the Democratic presidential nomination in Denver in 2008.

The foundation of Obama's speech is the one he gave in Kansas last month, when he declared that the middle class was at a make-or-break moment and he railed against "you're on your own" economics of the Republican Party. His theme then was about a government that ensures people get a fair shot to succeed.

The State of the Union will be the details to back that up.

But even so, the speech will still be a framework ? part governing, part inspiration.

The details will be rolled out in full over the next several weeks, as part of Obama's next budget proposal and during his travels, which will allow him more media coverage.

On national security, Obama will ask the nation to reflect with him on a momentous year of change, including the end of the war in Iraq, the killing of al-Qaida terrorist leader Osama bin Laden and the Arab Spring protests, with people clamoring for freedom. He is expected to note the troubles posed by Iran and Syria without offering new positions about them.

Despite low expectations for legislation this year, Obama will offer short-term ideas that would require action from Congress. For now, the main looming to-do item is an extension of a payroll tax cut and unemployment benefits, both due to expire by March.

His travel schedule following his speech, to politically important regions, offers clues to the policies he was expected to unveil.

Both Phoenix and Las Vegas have been hard hit by foreclosures. Denver is where Obama outlined ways of helping college students deal with school loan debt. Cedar Rapids, Iowa, and Detroit are home to a number of manufacturers. And Michigan was a major beneficiary of the president's decision to intervene to rescue the American auto industry.

Republican leaders in Congress say Obama has made the chances of cooperation even dimmer just over the last several days. He enraged Republicans by installing a consumer watchdog chief by going around the Senate, which had blocked him, and then rejected a major oil pipeline project the GOP has embraced.

Obama is likely, once again, to offer ways in which a broken Washington must work together. Yet that theme seems but a dream given the gridlock he has been unable to change.

The address remains an old-fashioned moment of national attention; 43 million people watched it on TV last year. The White House website will offer a live stream of the speech, promising extra wrinkles for people who watch it there, and then invite people to send in questions to administration officials through social media such as Twitter and Facebook.

Obama's campaign is also organizing and promoting parties around the nation for people to watch the speech.

__

AP deputy director of polling Jennifer Agiesta and Associated Press writer Ken Thomas contributed to this report.

__

Online:

White House: http://www.whitehouse.gov

___

Follow Ben Feller at http://twitter.com/BenFellerDC

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2012-01-21-US-Obama-State-of-the-Union/id-ff88c923470f497fa4e83a24497abb70

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