Powers wait to hear Iran response to nuclear offer

ALMATY (Reuters) - World powers hope Iran will respond positively on Wednesday to their new offer to lift some sanctions if Tehran scales back nuclear activity the West fears could be used to build bombs.

The United States, France, Germany, Britain, China and Russia presented the offer when their first meeting with Iran in eight months began in Almaty on Tuesday and the Islamic state was considering it, the powers' spokesman said.

The two sides began a second - and what is expected to be the last in this round of negotiations - day of discussions in the Kazakh city shortly after 11 a.m (0500 GMT) on Wednesday.

Western officials described the first day of the meeting as "useful". One said Iran discussed aspects of the powers' ideas in bilateral talks with three of them - Russia, Germany and Britain - but gave no indication how Tehran viewed them.

Iranian state television described the atmosphere in the discussions as "very serious".

The outcome of the meeting in the Kazakh city will be closely watched in Israel, which has strongly hinted that it could attack Iran's nuclear sites if diplomacy and sanctions fail to stop the uranium enrichment program.

Iran says Israel's assumed nuclear arsenal is the main threat to peace and denies Western allegations it is seeking to develop the capability to make atomic bombs. It says it is only aiming to produce nuclear energy so that it can export more oil.

In their latest attempt to break years of deadlock in the dispute, the powers are offering Iran a relaxation of some of the sanctions that are taking a heavy toll on its economy.

"Hopefully the Iranians will be able to reflect overnight and will come back and view our proposal positively," the spokesman for European Union foreign policy chief Catherine Ashton, who represents the powers in the talks, said.

"The ball is in their court," Michael Mann added after the first day of discussions on Tuesday.

He did not give details of the offer, but other Western officials have confirmed it includes some limited sanctions easing if Iran closes a underground site where it carries out its most controversial uranium enrichment work.

Diplomats see scant chances of a conclusive deal with Iran before a June presidential election - with the political elite preoccupied with domestic issues - but they hope to hold follow-up talks to the Almaty meeting soon.

IRANIAN COUNTERPROPOSAL

Iran would put forward its own proposal of "the same weight" as that of the other side, a source close to the Iranian negotiating team said on Tuesday, but Western officials said it had not done so during the first day of negotiations.

Iran has shown no sign of willingness to scale back its nuclear work. Its chief negotiator, Saeed Jalili, is close to Supreme Leader Ayatollah Ali Khamenei and is a veteran of Iran's 1980s war against Iraq and the Western powers that backed it.

It argues that has a sovereign right to carry out nuclear enrichment for peaceful energy purposes, and in particular refuses to close its underground Fordow enrichment plant, a condition the powers have set for any sanctions relief.

Tightened Western sanctions on Iran over the last 14 months are hurting Iran's economy and slashing oil revenue. Its currency has more than halved in value, which in turn has pushed up inflation.

But analysts say the sanctions are not close to having the crippling effect envisaged by Washington and - so far at least - they have not prompted a change in Iran's nuclear course.

Western officials said the powers' offer would include an easing of restrictions on trade in gold and other precious metals if Tehran closes Fordow.

The facility is used for enriching uranium to 20 percent fissile purity, a short technical step from weapons grade.

Western diplomats acknowledge an easing of U.S. and EU sanctions on trade in gold represents a relatively modest step. But gold could be used as part of barter transactions that might allow Iran to circumvent financial sanctions.

Iran's foreign ministry spokesman last week dismissed the reported incentive as insufficient and a senior Iranian lawmaker has ruled out closing Fordow, close to the holy city of Qom.

(Additional reporting by Yeganeh Torbati in Almaty and Zahra Hosseinian in Zurich; Editing by Robin Pomeroy and Jackie Frank)

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Ferrari goes up in flames at Teban Gardens

SINGAPORE: A red Ferrari went up in flames near Teban Gardens Road on Wednesday.

A Channel NewsAsia viewer was having his lunch at a coffee shop in the vicinity when he heard an explosion.

According to the viewer, the red Ferrari had stopped in front of block 54 Teban Gardens Road, along Penjuru Road.

The Chinese male driver had gotten out of the car before the explosion.

The driver did not appear to have been injured.

The Singapore Civil Defence Force (SCDF) arrived five minutes later and put out the fire.

SCDF confirmed that there were no reported injuries and that no other vehicle was involved in the incident.

The cause of the fire is being investigated.

- CNA/ck

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Yahoo admits new work policy contrary to industry view

Yahoo says work at the office, or work for someone else.

In response to the uproar caused by its recently announced telecommuting policy, Yahoo issued a brief statement this evening acknowledging that its work-at-home ban runs contrary to the tech industry as a whole.

"This isn't a broad industry view on working from home," Yahoo said in a statement published by The New York Times. "This is about what is right for Yahoo right now."

A spokesperson declined to elaborate, saying, "We don't discuss internal matters."

Yahoo's new policy, which requires employees to work in the company's offices, immediately ignited a firestorm of criticism. In a memo that leaked out over the weekend, Human Resources chief Jackie Reses informed the company's workforce that as of June, any existing work-from-home arrangements would no longer be honored.

"To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side," reads the memo.

The new policy was immediately criticized as standoffish in an industry where competition is intense for talented employees and especially ill advised at a company that has over the years battled declining morale among the rank and file. Some pointed out that CEO Marissa Mayer, a new mother who reportedly took only two weeks of maternity leave, should have more empathy for the needs of employees juggling time-conflicting commitments.

However, while working at home has become common at many tech companies, especially at ones eager to show off the benefits of collaborative Web-based software tools, some say the creative process suffers by not being able to share ideas in person.

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Gaza militants fire rocket into Israel, police there say

JERUSALEM Israeli police say a rocket has been fired from the Gaza Strip into Israel. A police spokesman says there was damage to a road but no injuries.

It's the first such rocket from the Palestinian territory to land in Israel since Israeli-Gaza fighting last November.

Police spokesman Micky Rosenfeld says the remains of a rocket were found on Tuesday near the city of Ashkelon, in southern Israel.

There have been protests throughout the West Bank in recent days in support of Palestinians held in Israeli jails. This weekend, Palestinian prisoner Arafat Jaradat, 30, died under disputed circumstances, prompting more protests.

A statement from the Palestinian president's office says President Mahmoud Abbas has instructed Palestinian security officials to preserve order in the West Bank, but he blames Israel for the violence.

Thousands attended Jaradat's funeral procession in the West Bank of Hebron, Monday.

Palestinian officials say autopsy results show Jaradat was tortured by Israeli interrogators, while Israeli officials say there's no conclusive cause of death yet and that more tests are needed.

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Americans Targeted for Allegedly Running Underage Prostitution in Philippines

Arthur Benjamin is sitting at the edge of a small stage, wearing a lavender Hawaiian shirt and nursing a bottle of San Miguel Light beer. The 6-foot-6 mustachioed Texan lazily watches the half dozen or so girls dancing rather unenergetically around the stage's pole.

"I forgot your gift again, it's in the car," Benjamin says to one of the girls on stage, shouting above the pop music blaring from the speaker system.

The small, dingy bar, which Benjamin says he owns, is called Crow Bar. It's in a rundown part of the picturesque Subic Bay in the western Philippines, about a three hour drive from the capital, Manila. Home for 50 years to a United States naval base, Subic Bay has become synonymous with foreigners looking for sex in the long string of bars that line the main road along the coast.

Watch the full story on "Nightline" TONIGHT at 12:35 a.m. ET

The bars in this area are often packed with older foreign men ogling the young Filipina women available for the night for a "bar fine" of around 1,500 Filipino pesos, or just over $35. Many of the bars are owned and operated by Americans, often former military servicemen who either served on the base or whose ships docked here until the base was shuttered under political pressure in 1992.

Most of the prostitutes working in the bars are indeed 18 or older. But in the Philippines, just a small scratch to the surface can reveal a layer of young, underage girls who have mostly come from impoverished rural provinces to sell their bodies to help support their families.

Benjamin, 49, is, according to his own statements, one of the countless foreigners who has moved beyond just having sex with underage girls to owning and operating a bar where girls in scantily-clad outfits flaunt their bodies for patrons.

"My wife recently found out that I have this place," he tells an ABC News "Nightline" team, unaware they are journalists and recording the conversation on tiny hidden cameras disguised as shirt buttons.

Benjamin said that a "disgruntled waitress" had written his wife on Facebook, detailing his activities in Subic Bay.

"She sent her this thing saying that I have underage girls who stayed with me, that I [have anal sex with them], I own a bar, I've got other girls that I'm putting through high school, all this other crap," he said.

"All of which is true," he laughed. "However, I have to deny."

He sends a text message summoning his current girlfriend, a petite dark-skinned girl called Jade, who he said is just 16 years old. Benjamin says he bought the bar for her about a year ago and while most still call it Crow Bar, he officially re-named it with her last name.

"She needed a place to stay, I needed a place to do her. I bought a bar for her," he says, explaining that she lives in a house out back by the beach.

"You're not going to find anything like this in the States, not as a guy my age," he said as he looked down at Jade. "Ain't going to happen."

Benjamin is the latest target of Father Shay Cullen, a Catholic priest with a thick Irish brogue and fluency in the local language, Tagalog. Through his non-profit center called Preda, he's been crusading against underage sex trafficking in the Philippines for 40 years.

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Italy faces stalemate after election shock

ROME (Reuters) - Italy faced political deadlock on Tuesday after a stunning election that saw the anti-establishment 5-Star Movement of comic Beppe Grillo become the strongest party in the country but left no group with a clear majority in parliament.

"The winner is: Ingovernability," was the headline in the Rome newspaper Il Messaggero, echoing the sentiment of a shock stalemate the country would have to confront in the next few weeks as sworn enemies would be forced to work together to form a government.

The center-left coalition led by Pier Luigi Bersani won the lower house by around 125,000 votes and claimed the most seats in the Senate but was short of the majority in the upper house that it would need to govern.

Bersani claimed victory but said it was obvious that Italy was in "a very delicate situation."

Neither Grillo, a comedian-turned-politician who previously ruled out any alliance with another party, nor Silvio Berlusconi's center-right bloc, which threatened to challenge the close tally, showed any immediate willingness to negotiate.

Commentators said all of Grillo's adversaries had underestimated the appeal of a grass-roots movement that called itself a "non-party," particularly its allure among young Italians who find themselves without jobs and the prospect of a decent future.

"The 'non-party' has become the largest party in the country," said Massimo Giannini, commentator for the Rome newspaper La Repubblica.

World financial markets reacted nervously to the prospect of a government stalemate in the euro zone's third-largest economy with memories still fresh of the financial crisis that took the 17-member currency bloc to the brink of collapse in 2011.

The euro skidded to an almost seven-week low against the dollar in Asia on fears about the euro zone's debt crisis. It fell as far as $1.3042, its lowest since January 10.

Italy's borrowing costs have come down in recent months, helped by the promise of European Central Bank support but the election result confirmed fears that it would not produce a government strong enough to implement effective reforms.

Grillo's surge in the final weeks of the campaign threw the race open, with hundreds of thousands turning up at his rallies to hear him lay into targets ranging from corrupt politicians and bankers to German Chancellor Angela Merkel.

In just three years, his 5-Star Movement, heavily backed by a frustrated generation of young Italians increasingly shut out from permanent full-time jobs, has grown from a marginal group to one of the most talked about political forces in Europe.

Its score of 25.5 percent in the lower house was just ahead of the 25.4 percent for Bersani's Democratic Party, which ran in a coalition with the leftist SEL party and it won almost 8.7 million votes overall, more than any other single party.

"The 5-Star Movement is the real winner of the election," said SEL leader Nichi Vendola, who said that his coalition would have to deal with Grillo, who mixes fierce attacks on corruption with policies ranging from clean energy to free Internet.

RECESSION

"It's a classic result. Typically Italian," said Roberta Federica, a 36-year-old office worker in Rome. "It means the country is not united. It is an expression of a country that does not work. I knew this would happen."

A long recession and growing disillusion with mainstream parties fed a bitter public mood that saw more than half of Italian voters back parties that rejected the austerity policies pursued by Prime Minister Mario Monti with the backing of Italy's European partners.

Monti suffered a major setback. His centrist grouping won only 10.6 percent and two of his key centrist allies, Pier Ferdinando Casini and lower house speaker Gianfranco Fini, both of whom have been parliamentarians for decades, were booted out.

"It's not that surprising if you consider how much delusion there was with politics in its traditional forms," Monti said.

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

Stefano Zamagni, an economics professor at Bologna University said the result showed that a significant share of Italians "are fed up with following the austerity line of Germany and its northern allies."

"These people voted to stick one up to Merkel and austerity," he said.

Election rules give the center-left a solid majority in the lower house, despite its slim advantage in terms of votes, but without the Senate it will not be able to pass legislation.

Calculations by the Italian Centre for Electoral Studies, part of LUISS university in Rome, gave 121 seats to Bersani's coalition, 117 to Berlusconi, 54 for Grillo and 22 to the centrist coalition led by Monti.

That leaves no party or likely alliance with the 158 seats needed to form a Senate majority.

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

Monti was widely credited with tightening Italy's public finances and restoring its international credibility after the scandal-plagued Berlusconi, whom he replaced as the 2011 financial crisis threatened to spin out of control.

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

(Writing by Philip Pullella; Additional reporting by Barry Moody, Gavin Jones, Catherine Hornby and Naomi O'Leary; Editing by Lisa Shumaker)

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SDP to address Budget 2013 "shortcomings" in its own "Shadow Budget"

SINGAPORE: The opposition Singapore Democratic Party (SDP) said it'll address the "shortcomings" of the government's Budget 2013 and propose a more efficient way of prioritising Singapore's expenditure estimates in its own "Shadow Budget".

The party said on Tuesday that the measures in Budget 2013 have failed to address Singapore's long-term needs.

It said while the Budget attempts to address systemic problems, it still falls short of addressing what Singapore really needs.

The SDP welcomes Finance Minister Tharman Shanmugaratnam's effort to tackle the problem of income disparity through the Wage Credit Scheme (WCS).

However, it felt that the WCS will not be an effective remedy if the root cause of the income gap is not addressed.

The root cause, the SDP said,, is the continued downward pressure on wages brought about by the importation of lower-wage foreign labour.

The SDP welcomed the move to raise the foreign worker levy for 2014 and 2015 but urged the government to rethink its policy of importing more foreign workers and to introduce minimum wage.

Turning to healthcare, the SDP said it's heartening to note that the Budget will increase funding of Eldercare, a programme which it supports.

However, it wants the 3M-system of Medisave, Medishield and Medifund replaced by a single-payer system, as well as government healthcare expenditure raised from the current 30 per cent to the international norm of about 70 per cent.

- CNA/ck

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Facebook pages pop-up exploiting Newtown victims

One of the many Facebook tribute pages created to honor the victims of the Newtown tragedy.

(Credit:
Screenshot by Dara Kerr/CNET)

Government officials and family members of victims from the Sandy Hook Elementary School shooting have asked Facebook to delete several offensive posts or tribute pages related to the massacre, according to the Associated Press.

Authorities have said that many of the Facebook pages are being used to berate survivors and victims' families, while others are fraudulently asking for funeral fund donations.

"Certainly there have been many, too many, of these pages that are intimidating or harassing or exploitive," U.S. Sen. Richard Blumenthal told the Associated Press.

Facebook has responded saying that it will work to remove the offending posts and pages but that some of the tribute pages help people share their sorrow.

Jodi Seth, a spokesperson for the social network, told the Associated Press that Facebook wants to respond quickly "while also recognizing that people across the country want to express grief for a terrible national tragedy."

In December, an armed man stormed the Connecticut elementary school and killed 26 people, including 20 children. Many of the victims have been memorialized and several of the survivors have been lauded on social networks. According to the Associated Press, more than 100 Facebook pages have been created and dedicated to Victoria Soto, one of the teachers killed in the shooting.

The insulting posts include conspiracy theorists who allege that the shooting was staged and all victims were actors. According to the Associated Press, a Facebook tribute page for survivor Kaitlin Roig -- the teacher who saved her students by barricading them in a bathroom -- has a post that reads, "Congratulations Kaitlin or whatever your name is.. Now you're famous and got to meet the 'President.' You ought to be ashamed of yourself."

Lawmakers have asked Facebook to remove the pages that are not authorized by the victims' families and to also make sure new fraudulent pages aren't created. Under Facebook's terms of use, it is prohibited for people to open accounts for anyone but themselves.

"We will continue to be vigilant," Seth told the Associated Press.

CNET contacted Facebook for comment. We'll update the story when we get more information.

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Day-Lewis wins record third best-actor Oscar

Daniel Day-Lewis won the Oscar for best actor for his exactingly authentic performance as President Abraham Lincoln in Steven Spielberg's historical drama at Sunday's Academy Awards. Going into the night, the British actor was the favorite to win.

He's the first to ever win the best actor Oscar three times. He's been nominated five times in all, winning for "My Left Foot" in 1990 and "There Will Be Blood" in 2008.

15 Photos

Oscars 2013: Press room

Day-Lewis, 55, spent a year preparing for "Lincoln," and, in his customary method, remained in character during the production. His widely-expected Oscar win further cements his status as the most admired actor currently working.

When asked backstage if there's anyone he'd like to portray next, Day-Lewis said, "I can't think of anyone right now because I need to have to lie down for a couple of years. No, I can't think of any. I really can't, no. It's really hard to imagine doing anything after this."

The other nominees Sunday night were Bradley Cooper ("Silver Linings Playbook"), Hugh Jackman ("Les Miserables"), Joaquin Phoenix ("The Master") and Denzel Washington ("Flight").

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Oscars 2013: 'Argo' Wins Best Picture

"Argo" took home the top prize as best picture at the Oscars Sunday night, with first lady Michelle Obama announcing the winner from the White House.

"You directed a hell of a film," co-producer Grant Heslov told director and fellow producer Ben Affleck. "I couldn't be more proud of the film and more proud of our director."

Affleck was snubbed in the directing category but humbly accepted the best picture Oscar as one of the three producers on the film. George Clooney was the third.

Affleck thanked Steven Spielberg and the other best picture nominees and his wife Jennifer Garner for "working on our marriage."

"It's good, it's work," he said, adding, "but there's no one I'd rather work with."

For Full List of Winners

Acknowledging his last Oscar win, as a screenwriter for "Good Will Hunting," Affleck said, "I was really just a kid. I never thought I would be back here."

In the acting categories, Daniel Day-Lewis won the Oscar for best actor, being the first actor to three-peat in that category. As he accepted the award from Hollywood's greatest actress, Meryl Streep, he joked, "I had actually been committed to play Margaret Thatcher. ... Meryl was Stephen's first choice for Lincoln."

He also thanked his wife, Rebecca Miller, for "living with some very strange men," with each new role that he takes on.

"She's the versatile one in the family and she's been the perfect companion to all of them," he said.

Kevin Winter/Getty Images

Jennifer Lawrence won the award for best actress. She tripped on the stairs on her way to accepting her award but picked herself up and made her way to the stage, earning a standing ovation.

"You're just standing up because you feel bad that I fell and that's embarrassing," she said, before rattling off a list of thank-yous and leaving the stage looking slightly stunned.

Watch Jennifer Lawrence's Oscar Tumble

"Life of Pi," which had a total of 11 nominations, was another big winner of the night. Director Ang Lee took home the Oscar for best director over Steven Spielberg and David O. Russell.

"Thank you, movie god," Lee said, accepting his award.

As expected, the film took home the first technical awards of the night for cinematography and visual effects. "Life of Pi" also won for best original score.

The first big acting awards of the night went to Christoph Waltz and Anne Hathaway in the supporting actor categories.

In one of the biggest tossups, Waltz claimed the award for supporting actor for his role in "Django Unchained." It was his second Oscar for a Quentin Tarantino film; his first was for Tarantino's "Inglourious Basterds."

PHOTOS: Stars on the Red Carpet

As expected, Hathaway took home the award for best supporting actress for her role as Fantine in "Les Miserables."

"It came true," she said, launching into a breathy speech, in which she thanked the cast and crew, her team and her husband. "The greatest moment of my life was when you walked into it," she said.

Tarantino won the Oscar for best original screenplay for his slave revenge western "Django Unchained." He thanked his cast.

"I have to cast the right people," he said. "And boy this time did I do it."

Chris Terrio won the award for best adapted screenplay for "Argo," which also won for film editing.

For only the sixth time in Academy history, there was a tie at the Oscars. "Zero Dark Thirty" and "Skyfall" tied for sound editing.

See Other Ties in Academy History

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