Winter Chill Descends on Frozen Fiscal Cliff Talks

A chill has descended on Washington just in time for tonight's lighting of the National Christmas Tree.

President Obama will preside over an evening festival of star-studded carols and sparkling displays of holiday cheer on the White House Ellipse.

But don't expect any of the holiday good will to warm the political frost over the fiscal cliff talks.

The White House is mandating that tax hikes for the wealthiest Americans must be part of any deficit-reduction deal with congressional Republicans, who stand equally opposed. Negotiations have ground to a standstill.

"There's no prospect for an agreement that doesn't involve those rates going up on the top 2 percent of the wealthiest," Treasury Secretary Timothy Geithner said Wednesday.

He also said the administration is "absolutely" willing to allow the package of deep automatic spending cuts and across-the-board tax hikes to take effect Jan. 1 if they don't get some increase in those tax rates.

Toby Jorrin/AFP/Getty Images

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Obama spoke by phone with House Speaker John Boehner on Wednesday, the first time both men had been in contact in one week. On Monday, Boehner attended a White House holiday party but did not greet Obama.

Republicans say Obama has fixated on tax hikes for the rich at the exclusion of entitlement program reforms to curb spending, which they are seeking as part of a "balanced" deal.

"The president talks about a balanced approach, but he's rejected spending cuts that he has supported previously and refuses to identify serious spending cuts he is willing to make today," Boehner said Wednesday. "This is preventing us from reaching an agreement."

As the showdown continues, Obama will take his tax argument on the road to Virginia, visiting the home of a middle class family to highlight the importance of lawmakers extending current, lower tax rates for 98 percent of U.S. earners.

Both parties agree they should be extended before they expire at the end of the year. But they remain tangled in the broader debate over spending cuts and upper-income tax rates.

The average American family of four would pay an estimated $2,200 more in taxes next year if the rates for middle-income earners are not extended.

Economists say a failure to resolve the standoff before Dec. 31 could thrust the U.S. economy back into a recession, a prospect many Americans are also worried about, according to a new poll.

Fifty-three percent of voters say lawmakers' failure to avoid the "cliff" would be "bad for their personal financial situation," compared to just 13 percent who said it wouldn't, according to the Quinnipiac University Polling Institute.

The same poll found a majority – 53 percent – trusting Obama and Democrats more than Republicans to work out a deal in the deficit negotiations.

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Egypt clashes erupt despite proposal to end crisis

CAIRO (Reuters) - Islamists fought protesters outside the Egyptian president's palace on Wednesday, while inside the building his deputy proposed a way to end a crisis over a draft constitution that has split the most populous Arab nation.

Stones and petrol bombs flew between opposition protesters and supporters of President Mohamed Mursi who had flocked to the palace in response to a call from the Muslim Brotherhood.

Two Islamists were hit in the legs by what their friends said were bullets fired during the clashes in streets around the compound in northern Cairo. One of them was bleeding heavily.

A leftist group said Islamists had cut the ear off one of its members, inflicting serious head wounds on him.

Riot police began to deploy between the two sides to try to end the violence which flared after dark despite an attempt by Vice President Mahmoud Mekky to calm the political crisis.

He said amendments to disputed articles in the draft constitution could be agreed with the opposition. A written agreement could then be submitted to the next parliament, to be elected after a referendum on the constitution on December 15.

"There must be consensus," he told a news conference, saying opposition demands must be respected to overcome the crisis.

Opposition leader Amr Moussa, a former foreign minister and secretary-general of the Arab League, said Mursi should make a formal offer for dialogue if his opponents were to consider seriously Mekky's ideas for a way out of the political impasse.

"We are ready when there is something formal, something expressed in definite terms, we will not ignore it," Moussa told Reuters during talks with other opposition figures.

Opposition leaders have previously urged Mursi to retract a decree widening his powers, defer the plebiscite and agree to revise the constitution, but have not echoed calls from street protesters for his overthrow and the "downfall of the regime".

UNDER SIEGE

Mursi had returned to work at his compound a day after it came under siege from protesters furious at his assumption of extraordinary powers via an edict on November 22.

The president, narrowly elected by popular vote in June, said he acted to stop courts still full of judges appointed by ousted strongman Hosni Mubarak from derailing a constitution meant to complete a political transition in Egypt, long an ally of Washington and signatory to a 1979 peace deal with Israel.

Rival groups skirmished earlier outside the presidential palace on Wednesday. Islamist supporters of Mursi tore down tents erected by leftist foes, who had begun a sit-in there.

"They hit us and destroyed our tents. Are you happy, Mursi? Aren't we Egyptians too?" asked protester Haitham Ahmed.

Mohamed Mohy, a pro-Mursi demonstrator who was filming the scene, said: "We are here to support our president and his decisions and save our country from traitors and agents."

Facing the gravest crisis of his six-month-old tenure, Mursi has shown no sign of buckling, confident that Islamists can win the referendum and a parliamentary election to follow.

Many Egyptians yearn for an end to political upheaval that has scared off investors and tourists, damaging the economy.

Mekky said street mobilization by both sides posed a "real danger" to Egypt. "If we do not put a stop to this phenomenon right away ... where are we headed? We must calm down."

U.S. Secretary of State Hillary Clinton weighed into Egypt's political debate, saying dialogue was urgently needed on the new constitution, which should "respect the rights of all citizens".

Clinton and Mursi worked together last month to broker a truce between Israel and Hamas Islamists in the Gaza Strip.

"It needs to be a two-way dialogue ... among Egyptians themselves about the constitutional process and the substance of the constitution," Clinton told a news conference in Brussels.

Washington is worried about rising Islamist power in Egypt, a staunch U.S. security partner under Mubarak.

"LAST WARNING"

The Muslim Brotherhood had summoned supporters to an open-ended demonstration at the presidential palace, a day after about 10,000 opposition protesters had encircled it for what organizers dubbed a "last warning" to Mursi.

"The people want the downfall of the regime," they chanted, roaring the signature slogan of last year's anti-Mubarak revolt.

Officials said 35 protesters and 40 police were wounded.

The "last warning" may turn out to be one of the last gasps for a disparate opposition that has little chance of scuttling next week's vote on a constitution drawn up over six months and swiftly approved by an Islamist-dominated assembly.

State institutions, with the partial exception of the judiciary, have mostly fallen in behind Mursi.

The army, the muscle behind all previous Egyptian presidents in the republic's six-decade history, has gone back to barracks, having apparently lost its appetite to intervene in politics.

In a bold move, Mursi sacked Mohamed Hussein Tantawi, the Mubarak-era army commander and defense minister, in August and removed the sweeping powers that the military council, which took over after Mubarak fell, had grabbed two months earlier.

The liberals, leftists, Christians, ex-Mubarak followers and others opposed to Mursi have yet to generate a mass movement or a grassroots political base to challenge the Brotherhood.

Investors have seized on hopes that Egypt's turbulent transition, which has buffeted the economy for two years, may soon head for calmer waters, sending stocks 1.6 percent higher after a 3.5 percent rally on Tuesday.

Egypt has turned to the IMF for a $4.8 billion loan to help it out of a crisis that has depleted its foreign currency reserves. The government said on Wednesday the process was on track and its request would go to the IMF board as expected.

The board is due to review the facility on December 19.

(Additional reporting by Tom Perry, Tamim Elyan and Edmund Blair; Writing by Alistair Lyon; Editing by Jon Hemming)

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Britain faces more austerity pain

LONDON: Finance minister George Osborne on Wednesday warned Britons that they faced an extra year of austerity measures and insisted that reversing his belt-tightening measures now would be a "disaster".

Chancellor of the Exchequer Osborne said Britain would face spending cuts and tax hikes until 2018 -- after the coalition government led by Prime Minister David Cameron had already previously extended the programme by two years to 2017.

The bleak announcement in a budget update, coming alongside news that the government is slashing its outlook for economic growth, is likely to heap further pressure on the administration mid-way through a five-year term in power.

Addressing parliament on Wednesday, Osborne also admitted that the government would fail to meet its official target for reducing public debt as a proportion of British economic output by 2015-16.

"It is taking time but the British economy is healing after the biggest financial crash in our lifetime," Osborne insisted in his Autumn Statement.

Confirming that he was prolonging the government's austerity programme to 2017-18 -- beyond Britain's next general election due in 2015 -- Osborne said: "We are making progress. It's a hard road, but we are getting there. Britain is on the right track and turning back now would be a disaster."

Explaining why he was extending cuts in public spending and hiking taxes again, Osborne said the British economy faced "deep-seated problems at home and abroad."

Britain's Conservative-Liberal Democrat coalition government, which came to power in 2010, has imposed a series of painful austerity measures to slash a record deficit that was inherited from the previous Labour administration.

Cameron and Osborne have overseen the loss of tens of thousands of public-sector jobs, slashing workforces in the military, health service and various state departments.

The government has also faced huge demonstrations from disgruntled workers ans students in response to the cuts.

The main opposition Labour party said Osborne's economic plans were "in tatters".

The party's finance spokesman Ed Balls said: "Today, after two and a half years, we can see, people can feel in the country, the true scale of this government's economic failure.

"Our economy this year is contracting, (and) the chancellor has confirmed government borrowing is revised up this year, next year and every year."

Britain meanwhile slashed its economic outlook, forecasting the economy would shrink by 0.1 percent this year and then return to growth in 2013, according to figures published alongside the budget update.

The new forecast, issued by the Office for Budget Responsibility (OBR) fiscal watchdog, showed a sharp drop on the previous 2012 growth estimate of 0.8 percent that was given in Osborne's annual budget in March.

The OBR added that British gross domestic product was forecast to grow by 1.2 percent in 2013. That compared with previous guidance for greater expansion of 2.0 percent.

Osborne also revealed that debt as a proportion of gross domestic product (GDP) was now expected to fall in 2016-17 -- a year later than the government's previous forecast.

Recent official data showed that Britain had escaped from recession in the third quarter of this year, with its economy growing by a robust 1.0 percent.

However the return to growth was owing to one-off factors such as the London Olympics and rebounding activity after public holidays in the second quarter.

"The message... is that we are making progress," Osborne said.

Osborne had some positive news for motorists and businesses, postponing a hike in fuel tax due to have come into force in January and saying he would cut corporation tax by one percentage point to 21 percent in 2014.

The coalition has blamed the recession largely on the debt crisis in the neighbouring eurozone, but the main opposition Labour party claims that the downturn was mainly owing to the hefty cuts in state spending.

On the eve of the budget update, Osborne pledged to invest £5.0 billion (6 billion euros, $8 billion) in schools, transport and science over the next two fiscal years, with the cash sourced from a new raft of spending cuts across most civil service departments.

And on Monday, Osborne launched a campaign against "tax dodgers" and "cowboy advisers" to claw back £2.0 billion a year, as lawmakers alleged that multinationals such as Starbucks and Google are avoiding huge tax bills.

-AFP/ac

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Deoband fatwa describes perfume with alcohol, tattoo and women receptionists as un-Islamic

LUCKNOW: Two fatwas issued by leading Islamic seminary Darul Uloom Deoband in Muzaffarnagar in Uttar Pradesh in last two days have left many in Muslim community perplexed in the state. While a fatwa as described working of women as receptionists against sharia law, another termed tattoo and use of perfume with alcohol content as un-Islamic.

A Pakistan-based company had asked whether it could appoint a Muslim woman as a receptionist. In reply, the seminary said that Muslim women working in offices as receptionist is un-Islamic because Muslim women are not allowed to appear before men without veil. Mufti Zulfikar Ali, Muslim cleric and president of UP Imam organisation, also said that the Muslim women can work in institutions after wearing the veil but the work of a receptionist is to constantly interact with people, which should not be practised.

In the second case a youth in his query had asked that is tattoo valid in shaira law?. He said that one of his friends who has a tattoo on his arm and it would cost him a huge sum if he goes for a surgery to remove it. In such a condition what should be done, he said in his query. The seminary, in its reply, said that prayers of those, who have tattoo on their bodies or have sprayed perfume with alcohol in it is not valid. Another Islamic seminary, Bareli Markaz has backed the Deoband's decree saying that the tattoo on body is against the tenets of Islam.

Earlier, Darul Uloom Deoband had issued a fatwa against manufacturing and selling of firecrackers. It stated that manufacturing and selling of firecrackers is against Sharia law and bursting of crackers is misuse of money, hence it should be avoided. Another fatwa recently had described donation of blood and body parts was against the tenets of Islam.

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John McAfee Seeks Asylum, Thanks God for 'Sanity'

Eccentric software tycoon John McAfee, wanted for questioning in the shooting death of his neighbor, has made his escape from Belize to Guatemala, where he told ABC News he will be seeking asylum.

"Thank God I am in a place where there is some sanity," McAfee said. "I chose Guatemala carefully."

McAfee, 67, has been on the run from police in the Central American country of Belize since the Nov. 10 murder of his neighbor, fellow American expatriate Greg Faull. Investigators said that McAfee was not a suspect in the death of the former developer, who was found shot in the head in his house on the resort island of San Pedro, but that they wanted to question him.

McAfee has been hiding from police ever since – a tactic his new lawyer, Telesforo Guerra, says was necessary.

"You don't have to believe what the police say," Guerra told ABC News. "Even though they say he is not a suspect they were trying to capture him." Guerra is Guatemala's former Attorney General, and, says McAfee, the uncle of McAfee's 20-year-old girlfriend, Samantha.

McAfee says the government raided his beachfront home and threatened Samantha's family.

"Fifteen armed soldiers come in and personally kidnap my housekeeper, threaten Sam's father with torture and haul away half a million dollars of my s___," claimed McAfee. "If they're not after me, then why all these raids? There've been eight raids!"

Johan Ordonez/AFP/Getty Images

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McAfee will hold a press conference at 3 p.m. Eastern Time in Guatemala City to announce his asylum bid. He has offered to answer questions from Belizean law enforcement over the phone, and denies any involvement in Faull's death.

For three weeks, McAfee has been on the run, blogging about his flight, flinging accusations at the Belize government and demanding the release of several friends who have been arrested. He zipped around in speedboats and vans, dyed his hair and beard black and said he'd been sleeping in a bug-infested bed.

Over the weekend, a post on his blog claimed that he had been detained on the Belizean/Mexico border.

On Monday, a follow-up post said that the "John McAfee" taken into custody was actually a "double" who was carrying a North Korean passport with McAfee's name.

That post claimed that McAfee had already escaped Belize and was on the run with Samantha and two reporters from Vice Magazine.

McAfee did not reveal his location in that post, and a spokesperson for Belize's National Security Ministry, Raphael Martinez, told ABC News on Monday that no one by McAfee's name was ever detained at the border and that Belizean security officials believed McAfee was still in their country.

However, a photo posted by Vice Magazine on Monday with their article, "We Are With John McAfee Right Now, Suckers," apparently had been taken on an iPhone 4S and had location information embedded in it which revealed the exact coordinates where the photo was taken - in the Rio Dulce National Park in Guatemala – as reported by Wired.com.

A subsequent blog post on McAfee's site confirmed that the photo had mistakenly revealed his location, and said that Monday was "chaotic due to the accidental release of my exact co-ordinates by an unseasoned technician at Vice headquarters."

"We made it to safety in spite of this handicap," the post reads. "I had to cancel numerous interviews with the press yesterday because of this and I apologize to all of those affected."

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Egypt's Mursi leaves palace as police battle protesters

CAIRO (Reuters) - Egyptian police battled thousands of protesters outside President Mohamed Mursi's palace in Cairo on Tuesday, prompting the Islamist leader to leave the building, two presidential sources said.

Police fired teargas at demonstrators angered by Mursi's drive to hold a referendum on a new constitution on December 15. Some broke through police lines around his palace and protested next to the perimeter wall.

Several thousand people had gathered nearby in what they dubbed "last warning" protests against Mursi, who infuriated opponents with a November 22 decree that expanded his powers. "The people want the downfall of the regime," the crowd chanted.

"The president left the palace," a presidential source, who declined to be named, told Reuters. A security source at the presidency also said the president had left the building.

Mursi ignited a storm of unrest in his bid to prevent a judiciary still packed with appointees of ousted predecessor Hosni Mubarak from derailing a troubled political transition.

Riot police at the palace faced off against activists chanting "leave, leave" and holding Egyptian flags with "no to the constitution" written on them. Protesters had assembled near mosques in northern Cairo before marching towards the palace.

"Our marches are against tyranny and the void constitutional decree and we won't retract our position until our demands are met," said Hussein Abdel Ghany, a spokesman for an opposition coalition of liberal, leftist and other disparate factions.

Despite the latest protests, there has been only a limited response to opposition calls for a mass campaign of civil disobedience in the Arab world's most populous country and cultural hub, where many people yearn for a return to stability.

A few hundred protesters gathered earlier near Mursi's house in a suburb east of Cairo, chanting slogans against his decree and against the Muslim Brotherhood, from which the president emerged to win a free election in June. Police closed the road to stop them from coming any closer, a security official said.

Opposition groups have accused Mursi of making a dictatorial power grab to push through a constitution drafted by an assembly dominated by Islamists, with a referendum planned for December 15.

Egypt's most widely read independent newspapers did not publish on Tuesday in protest at Mursi's "dictatorship". Banks closed early to let staff go home safely in case of trouble.

Abdelrahman Mansour in Cairo's Tahrir Square, the cradle of the anti-Mubarak revolt, said: "The presidency believes the opposition is too weak and toothless. Today is the day we show them the opposition is a force to be reckoned with."

After winning post-Mubarak elections and pushing the Egyptian military out of the political driving seat it held for decades, the Islamists sense their moment has come to shape the future of Egypt, a longtime U.S. ally whose 1979 peace treaty with Israel is a cornerstone of Washington's Middle East policy.

The Muslim Brotherhood and its allies, who staged a huge pro-Mursi demonstration on Saturday, are confident that enough members of the judiciary will be available to oversee the mid-December referendum, despite calls by some judges for a boycott.

Cairo stocks closed up 3.5 percent on Tuesday as investors took heart at what they saw as prospects for a return to stability in a country whose divisions have only widened since a mass uprising toppled Mubarak on February 11, 2011.

Mohamed Radwan, at Pharos Securities brokerage, said the Supreme Judicial Council's agreement to supervise the referendum had generated confidence that the vote would happen "despite all the noise and demonstrations that might take place until then".

"NO WAY PERFECT"

Prime Minister Hisham Kandil, a technocrat with Islamist sympathies, said in an interview with CNN: "We certainly hope that things will quiet down after the referendum is completed."

He said the constitution was "in no way a perfect text" that everyone had agreed to, but that a "majority consensus" favored moving forward with the referendum in 11 days' time.

The Muslim Brotherhood, now tasting power via the ballot box for the first time in eight decades of struggle, wants to safeguard its gains and appears ready to override street protests by what it regards as an unrepresentative minority.

It is also determined to stop the courts, which have already dissolved the Islamist-led elected lower house of parliament, from further obstructing their blueprint for change.

Mohamed ElBaradei, coordinator of an opposition National Salvation Front, has said Mursi must rescind his decree, drop plans for the referendum and agree on a new, more representative constituent assembly to draft a democratic constitution.

In an opinion piece published in the Financial Times, he accused Mursi and the Brotherhood of believing that "with a few strokes of a pen, they can slide (Egypt) back into a coma".

ElBaradei, a Nobel Peace Prize laureate who once headed the U.N. nuclear watchdog, wrote: "If they continue to try, they risk an eruption into violence and chaos that will destroy the fabric of Egyptian society."

Despite charges that they are anti-Islamist and politically motivated, judges say they are following legal codes in their rulings. Experts say some political changes rushed through in the past two years have been on shaky legal ground.

A Western diplomat said the Islamists were counting on a popular desire for restored normality and economic stability.

"All the messages from the Muslim Brotherhood are that a vote for the constitution is one for stability and a vote against is one for uncertainty," he said, adding that the cost of the strategy was a "breakdown in consensus politics".

(Additional reporting by Tom Perry, Tamim Elyan and Edmund Blair; Writing by Alistair Lyon; Editing by Michael Roddy)

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Android extends global smartphone lead: survey

WASHINGTON: Google's Android operating system will power more than two-thirds of smartphones sold worldwide in 2012, and will remain the dominant platform for at least the next four years, a survey showed Tuesday.

The survey by the research firm IDC showed Android will be the platform for 68.3 per cent of smartphones shipped in 2012, far ahead of 18.8 per cent for the iOS platform used on Apple's iPhone.

"IDC forecasts Android to be the clear leader in the smartphone mobile operating system race, thanks in large part to a broad selection of devices from a wide range of partners," the market tracker said.

"Samsung is the leading Android smartphone seller though resurgent smartphone vendors LG Electronics and Sony, both of which cracked the top five smartphone vendors during the third quarter, are not to be overlooked. IDC believes the net result of this will be continued double-digit growth throughout the forecast period."

The report said Android will retain the top position through 2016, when it will have 63.8 per cent of the market in the face of increased competition from Apple, Microsoft's Windows Phone and others.

"Android is expected to stay in front, but we also expect it to be the biggest target for competing operating systems to grab market share," said Ramon Llamas, research manager with IDC.

"At the same time, Windows Phone stands to gain the most market share as its smartphone and carrier partners have gained valuable experience in selling the differentiated experience Windows Phone has to offer."

Llamas said other players jockeying for market share will include Research in Motion's BlackBerry, which releases a new operating system next year, and the open-source Linux system.

BlackBerry, which until a few years ago was the dominant smartphone, will see its market share slide to 4.7 per cent in 2012, according to IDC, and to 4.1 per cent by 2016.

Linux will be used on two per cent of smartphones this year and 1.5 per cent in 2016, it said. Windows will grow from 2.6 per cent this year to 11.4 per cent in 2016, IDC said.

Apple's iOS will remain the clear number two platform but will be "cost prohibitive for some users within many emerging markets," IDC said.

"In order to maintain current growth rates, Apple will need to examine the possibility of offering less expensive models," it said.

The report said the overall worldwide mobile phone market will grow just 1.4 per cent in 2012, the lowest annual growth rate in three years. The total number of devices sold is expected to be around 1.7 billion.

The forecast reflects an estimated 39.5 per cent growth in smartphones, but declines in sales of other kinds of mobile phones.

"Sluggish economic conditions worldwide have cast a pall over the mobile phone market this year," said IDC's Kevin Restivo.

"However, the fourth quarter will be relatively bright due in part to sales of high-profile smartphones, such as the iPhone 5 and Samsung's Galaxy S3, in addition to lower-cost Android-powered smartphones shipped to China and other high-growth emerging markets."

- AFP/fa

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GMR row: India tells Maldives not to take any coercive action

MALE/NEW DELHI: India on Tuesday made it clear to the Maldives that no arbitrary or coercive measure should be taken in the GMR case pending the outcome of the legal proceedings, underlining that any such action would inevitably have adverse consequences for bilateral relations.

This was conveyed by external affairs minister Salman Khurshid when his Maldivian counterpart Abdul Samad Abdullah telephoned him up in the wake of the scrapping of the airport contract to the GMR by the Maldivian government Abdullah had mentioned that his government would not allow relations between India and Maldives to be undermined and that there was consensus on this issue, Syed Akbaruddin, the external affairs ministry spokesperson, told reporters here.

Khurshid reminded his Maldivian counterpart of his earlier discussions and stressed that "the legal processes involved in the GMR case should be permitted to take their own course based on the contractual obligations of the parties involved".

"The Maldivian government should not allow the situation to go out of hand," said the spokesperson while giving details of the telephonic conversation and the message conveyed by Khurshid to Abdullah.

"In this context, it is expected that no arbitrary and coercive measures should be taken pending the outcome of the legal process underway," said the spokesperson.

"Resort to any such actions would inevitably have adverse consequences for relations between India and the Maldives," he added.

In response to another question regarding the volatile situation in the Maldives, the spokesperson said India was concerned over reports from the Maldives about continuing violence and intimidation against elected representatives and expressions of radical sentiments.

"There is need to ensure that the rule of law is upheld and principles and tenets of democracy are maintained. We will continue to monitor the situation closely," he said.

However, the Maldives government has decided to go ahead with its plan to take full control of Male airport after ousting India's GMR. The call by the Maldives foreign minister was aimed at pacifying India, which is deeply upset over the cancellation of the airport contract given to Indian firm GMR.

The Maldives minister explained legal and other reasons behind the cancellation of the project, said official sources.

The sources added that Abdullah sought India's understanding and hoped it will not hurt bilateral ties, said the sources.

Abdullah conveyed to Khurshid that a detailed communication on the GMR issue will be sent to Prime Minister Manmohan Singh.

On his part, Khurshid conveyed India's displeasure at the decision and underlined that the scrapping of the biggest single Indian FDI in the Maldives will negatively impact bilateral trade ties and the larger relationship.

In a move to put pressure on Male, India has put on hold aid to the Maldives after the Maldives government Monday decided to take control of the international airport despite a Singapore court staying the suspension of the contract given to India's GMR-led consortium.

The high court of Singapore suspended the Maldives government's decision last week to terminate the $500 million contract awarded to the consortium for developing the Ibrahim Nasir International Airport at Male.

The Maldives government, however, has chosen to defy the court order.

"We will continue the airport takeover and Inshallah next Saturday onwards MACL (state-controlled Maldives Airport Company Ltd) will be running the airport," Defence minister and acting transport minister Mohamed Nazim told reporters in Male Monday.

Upset at the Maldives government's attitude, India has put on hold $25-million budgetary commitment to Male, said reliable sources Monday. The bilateral ties will be affected, said the sources. The Indian government is also studying the court order and its implications, said the sources.

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CDC says US flu season starts early, could be bad

NEW YORK (AP) — Flu season in the U.S. is off to its earliest start in nearly a decade — and it could be a bad one.

Health officials on Monday said suspected flu cases have jumped in five Southern states, and the primary strain circulating tends to make people sicker than other types. It is particularly hard on the elderly.

"It looks like it's shaping up to be a bad flu season, but only time will tell," said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.

The good news is that the nation seems fairly well prepared, Frieden said. More than a third of Americans have been vaccinated, and the vaccine formulated for this year is well-matched to the strains of the virus seen so far, CDC officials said.

Higher-than-normal reports of flu have come in from Alabama, Louisiana, Mississippi, Tennessee and Texas. An uptick like this usually doesn't happen until after Christmas. Flu-related hospitalizations are also rising earlier than usual, and there have already been two deaths in children.

Hospitals and urgent care centers in northern Alabama have been bustling. "Fortunately, the cases have been relatively mild," said Dr. Henry Wang, an emergency medicine physician at the University of Alabama at Birmingham.

Parts of Georgia have seen a boom in traffic, too. It's not clear why the flu is showing up so early, or how long it will stay.

"My advice is: Get the vaccine now," said Dr. James Steinberg, an Emory University infectious diseases specialist in Atlanta.

The last time a conventional flu season started this early was the winter of 2003-04, which proved to be one of the most lethal seasons in the past 35 years, with more than 48,000 deaths. The dominant type of flu back then was the same one seen this year.

One key difference between then and now: In 2003-04, the vaccine was poorly matched to the predominant flu strain. Also, there's more vaccine now, and vaccination rates have risen for the general public and for key groups such as pregnant women and health care workers.

An estimated 112 million Americans have been vaccinated so far, the CDC said. Flu vaccinations are recommended for everyone 6 months or older.

On average, about 24,000 Americans die each flu season, according to the CDC.

Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.

A strain of swine flu that hit in 2009 caused a wave of cases in the spring and then again in the early fall. But that was considered a unique type of flu, distinct from the conventional strains that circulate every year.

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Online:

CDC: http://www.cdc.gov/flu/weekly

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Alaska Serial Killer Buried Murder Kits Across US

Israel Keyes, the Alaskan man whoconfessed to seven murders before killing himself in a jail cell, told police that he traveled the country to find victims and buried caches of weapons, money and tools for disposing of bodies to use in future crimes.

The FBI also released an ominous list of 35 trips Keyes made around the U.S., Mexico and Canada over the last eight years.

Keyes, 34, the owner of an Anchorage construction company, was in jail charged with the February murder of Samantha Koenig, 18. While in jail he had been confessing to at least seven other killings in Washington, New York and Vermont. He was found dead in his Alaska jail cell on Sunday in an apparent suicide.

Investigators are now piecing together a deadly puzzle that is uncovering a macabre lifestyle of Keyes traveling to kill simply because he "liked to do it," prosecutors said.

"In a series of interviews with law enforcement, Keyes described significant planning and preparation for his murders, reflecting a meticulous and organized approach to the crimes," the Anchorage FBI office said in a statement.

The FBI has released a timeline of Keyes' travels that showed nearly three dozen trips between 2004 and 2012. The destinations of the trips are vague, described only by U.S. region in most cases, but span the entire country, including Hawaii. There are also trips to Canada and Mexico listed.

"Keyes also admitted traveling to various locations to leave supplies he planned to use in a future crime. Keyes buried caches throughout the United States," the FBI said.

Missing Alaska Barista Had Past Restraining Order Watch Video

Authorities have already recovered two caches, one in Alaska and one in New York, that contained money, weapons and items for disposing of bodies. Keyes indicated that there were other supply boxes buried across the country.

He funded his travel with the proceeds from bank robberies, authorities said.

"Investigators believe that Keyes did not know any of his victims prior to their abductions," the FBI said. "He described several remote locations that he frequented to look for victims--parks, campgrounds, trailheads, cemeteries, boating areas, etc."

Keyes told authorities that his victims received little if any media attention when they disappeared. Authorities said that "based on his own research," Keyes said that one of his victims had been recovered, but the death was ruled accidental. Investigators said they have not identified the victim or location of that alleged crime.

Before his death, Keyes indicated that, in addition to Koenig and a Vermont couple, he killed four people in Washington State and one person in New York, but did not give the victims' names, authorities said.

"It was not unusual for Keyes to fly into an airport, rent a car, and drive hundreds of miles to his final destination," the FBI said.

That is precisely what Keyes did in the murder of Bill and Lorraine Currier in Essex, Vt., last year. He flew from Alaska to Chicago in June 2011. He rented a car in Chicago and drove to Vermont where he spent three days looking for his next victims and planning the slaying.

"When [Keyes] left Alaska, he left with the specific purpose of kidnapping and murdering someone," Chittenden County State Attorney T. J. Donovan said at the press conference. "He was specifically looking for a house that had an attached garage, no car in the driveway, no children, no dog."

The Curriers, unfortunately, fit all of Keyes' criteria. He spent three days in Vermont before striking. He even took out a three-day fishing license and fished before the slayings.

Keyes abducted the couple from their home and murdered them in an abandoned barn he had located before breaking into the Curriers' home. After binding the couple with plastic cuffs, the beat the husband with a shovel and then shot him. The wife was raped and strangled.

"By all accounts, [the Curriers] were friendly, peaceful, good people who encountered a force of pure evil acting at random," an investigator said at today's news conference. Authorities called the ongoing investigation a "huge case, national in scope."

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