Boehner opens door to tax hikes, shifts U.S. fiscal cliff talks

WASHINGTON (Reuters) – U.S. House of Representatives Speaker John Boehner‘s offer to accept a tax rate increase for the wealthiest Americans knocks down a key Republican road block to a deal resolving the year-end “fiscal cliff.”

The question now boils down to what President Barack Obama offers in return. Such major questions, still unanswered so close to the end of the year suggest, however, that no spending and tax agreement is imminent.

A source familiar with the Obama-Boehner talks confirmed that Boehner proposed extending low tax rates for everyone who has less than $ 1 million in net annual income, meaning tax rates would rise on all above that line.

Under current law, the 35 percent top tax rate is scheduled to expire on January 1, and would automatically go to 39.6 percent. Boehner’s proposal would allow that rate to rise as scheduled at a threshold of $ 1 million – putting it back to where it was during the Clinton administration.

The White House has not accepted the proposal and the source could not confirm any additional talks were held on Sunday between Obama and Boehner.

With just over two weeks before the fiscal cliff’s $ 600 billion in automatic tax hikes and spending cuts are triggered, threatening a new recession, there is little time to craft a comprehensive deal that will satisfy both Democrats and Republicans.

Until the latest Republican offer, made on Friday, Boehner had insisted on extending all of the Bush era’s lower tax rates, resisting Obama’s demand to let the marginal rates rise on income above $ 250,000. A rising chorus of business executives also had urged Republicans to agree to this.

Some lawmakers and congressional aides had predicted that Republicans, once serious negotiations began, might try to raise the $ 250,000 threshold, say to $ 500,000 or $ 1 million. They also speculated that Republicans, if forced into a tax rate hike on the upper-income groups, might seek a smaller increase, say to around 37 percent.

Although the White House has not accepted Boehner’s gambit, it could push negotiations away from entrenched, ideological positions.

“Boehner has now accepted the premise of higher rates. So now we’re just arguing over details. I think it’s a significant step,” said Greg Valliere, chief political strategist at Potomac Research Group.

A framework deal spelling out tax revenue and spending cut targets to be finalized in the new year could be possible, Valliere said.

“Boehner’s offer to allow tax rates to go up for taxpayers earning over $ 1 million fundamentally transforms fiscal cliff negotiations,” added Sean West, U.S. policy analyst at Eurasia Group, a political risk consultancy.

In a note to clients, West wrote that it signals, significantly, that Boehner ultimately believes a deal to avoid the cliff is still possible.

“The political burden is now shifted back to the president, who must be willing to take on his party in order to get a deal Boehner can ultimately pass. We do not think the president will overreach: Obama will work with Boehner to get to a deal.”

There are still several critical elements to a deal besides a tax rate increase on the wealthy, including Republican demands to cut spending on social programs.

Changes to the expensive Medicare and Medicaid health care programs for the elderly and the poor could be central to any deal, which must also include an increase in the federal debt limit needed by the end of February.

DEMANDS SOCIAL PROGRAM CUTS

Boehner conditioned his tax rate increase offer on Obama’s agreement to cuts in social program spending, often called entitlements.

Many Republican lawmakers want to raise the eligibility age for Medicare to 67 from 65. They also want to link Medicare to the income of recipients, making wealthier retirees pay more for their care.

Currently, Medicare does have some means testing, charging higher premiums for coverage of doctors visits and prescription drugs to individuals earning more than $ 85,000 and married couples earning more than $ 170,000. Only about 5 percent of recipients pay these higher premiums.

Thus far, Obama has offered only about $ 400 billion in 10-year entitlement savings, mostly through small adjustments in reining in health care costs – not fundamental changes such as raising the eligibility age.

And just as Boehner faces opposition in his own party to raising any tax rates, Obama faces opposition to cuts to Medicare, Medicaid and Social Security from Democrats, who pledged in election campaigns they would protect these programs.

A major bloc of congressional Democrats has already signaled they will not accept major cutbacks in Medicare as part of any fiscal cliff deal.

House Minority Leader Nancy Pelosi of California and Maryland Representative Chris Van Hollen of Maryland are among the high ranking Democrats in the House who have come out forcefully in recent days against raising the age for eligibility for Medicare to 67 years of age.

“Given the level of savings that is being talked about from Medicare, you can’t get it all from providers and drug makers,” said Paul Heldman, an analyst at Potomac Research, which tracks Washington policy for investors.

“So opponents of raising the eligibility age have reason to believe beneficiaries will take some sort of hit if a mega-deal is cut,” he said.

If Republicans are not successful in securing entitlement program cuts in exchange for a tax-rate increase on the wealthy, they are adamant about using a debt-limit increase as leverage to overhaul Social Security and Medicare.

The U.S. Treasury expects to reach its $ 16.4 trillion statutory debt cap by year-end, and will exhaust its remaining borrowing capacity around mid-February, risking a potential default.

Louisiana Republican Representative John Fleming, a member of the conservative Tea Party caucus who has never voted to increase the debt ceiling, said he would support a debt limit hike if it were part of a deal to make Medicare and Social Security sustainable.

The pace of activity could pick up the coming week.

House Republicans were told to prepare for a possible weekend session next week, potentially interrupting travel plans for the long Christmas holiday weekend.

House Majority Leader Eric Cantor scheduled “possible legislation related to expiring provisions of law,” a reference to the expiring tax cuts, for the end of the week, portending a weekend session. Cantor has said the House would meet through the Christmas holidays and beyond.

(This story was fixed to correct current top tax rate to 35 percent from 36 percent)

(Additional reporting by Thomas Ferraro, Richard Cowan and Kim Dixon; Editing by Fred Barbash, Todd Eastham and Jackie Frank)

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Obama offers 'love, prayers of nation' to Newtown

NEWTOWN, Conn. (AP) — He spoke for a nation in sorrow, but the slaughter of all those little boys and girls left President Barack Obama, like so many others, reaching for words. Alone on a spare stage after the worst single day of his presidency, the commander in chief was a parent in grief.

"I am very mindful that mere words cannot match the depth of your sorrow, nor can they heal your wounded hearts," Obama said at an evening vigil in the grieving community of Newtown, Conn. "I can only hope that it helps for you to know that you are not alone in your grief."

The massacre of 26 children and adults at Sandy Hook Elementary on Friday elicited horror around the world, soul-searching in the United States, fresh political debate about gun control and questions about the incomprehensible — what drove the suspect to act.

It also left a newly re-elected president openly grappling for bigger answers. Obama said that in the coming weeks, he would use "whatever power this office holds" to engage with law enforcement, mental health professionals, parents and educators in an effort to prevent more tragedies like Newtown.

"Can say that we're truly doing enough to give all the children of this country the chance they deserve to live out their lives in happiness and with purpose? I've been reflecting on this the last few days," Obama said, somber and steady as some in the audience wept.

"If we're honest without ourselves, the answer is no. And we will have to change."

He promised to lead a national effort, but left unclear was what it would be, and how much it would address the explosive issue of gun control.

"What choice do we have?" Obama said. "Are we really prepared to say that we're powerless in the face of such carnage, that the politics are too hard?"

As Obama read some of the names of victims early in his remarks, several people broke down, their sobs heard throughout the hall.

He closed his remarks by slowly reading the first names of each of the 26 victims.

"God has called them all home. For those of us who remain, let us find the strength to carry on and make our country worthy of their memory," he said.

For Obama, ending his fourth year in office, it was another sorrowful visit to another community in disbelief. It is the job of the president to be there, to listen and console, to offer help even when the only thing within his grasp is a hug.

All the victims were killed up close by multiple rifle shots.

The toll: six adults. Twenty boys and girls, all of whom were just 6 or 7 years old.

Inside the vigil children held stuffed teddy bears and dogs. The smallest kids sat on their parents' laps.

There were tears and hugs, but also smiles and squeezed arms. Mixed with disbelief was a sense of a community reacquainting itself all at once. One man said it was less mournful, more familial. Some kids chatted easily with their friends. The adults embraced each other in support.

The president first met privately with families of the victims and with the emergency personnel who responded to the shootings. That meeting happened at Newtown High School, the site of Sunday night's interfaith vigil, about a mile and a half from where the shootings took place.

"We're halfway between grief and hope," said Curt Brantl, whose fourth-grade daughter was in the library of the elementary school when the shootings occurred. She was not harmed.

Police and firefighters got hugs and standing ovations when they entered. So did Obama.

"We needed this," said the Rev. Matt Crebbin, senior minister of the Newtown Congregational Church. "We need to be together here in this room. ... We needed to be together to show that we are together and united."

The shootings have restarted a debate in Washington about what politicians can to do help — gun control or otherwise. Obama on Friday called for leaders to agree on "meaningful action" to prevent killings.

Police say the gunman, Adam Lanza, was carrying an arsenal of ammunition big enough to kill just about every student in the school if given enough time. He shot himself in the head just as he heard police drawing near, authorities said.

A Connecticut official said the gunman's mother was found dead in her pajamas in bed, shot four times in the head with a.22-caliber rifle. The killer then went to the school with guns he took from his mother and began blasting his way through the building.

The tragedy plunged the picturesque New England town of 27,000 people into mourning.

"I know that Newtown will prevail, that we will not fall to acts of violence," said First Selectwoman Patricia Llodra. "It is a defining moment for our town, but it does not define us."

A White House official said Obama mainly wrote the speech himself. He worked with presidential speechwriter Cody Keenan, who helped Obama write his speech last year after shootings in Tucson, Ariz., left six dead and 13 wounded, including Rep. Gabby Giffords.

Just this past summer, Obama went to Aurora, Colo., to visit victims and families after a shooting spree at a movie theater in the Denver suburb left 12 dead.

In November 2009, Obama traveled to Fort Hood, Texas, to speak at the memorial service for 13 service members who were killed on the post by another soldier.

After the Colorado shooting in July, the White House made clear that Obama would not propose new gun restrictions in an election year and said he favored better enforcement of existing laws.

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Nigeria governor, 5 others die in helicopter crash

LAGOS, Nigeria (AP) — A navy helicopter crashed Saturday in the country’s oil-rich southern delta, killing a state governor and five other people, in the latest air disaster to hit Africa’s most populous nation, officials said.

Nigeria‘s ruling party said in a statement that the governor of the central Nigerian state of Kaduna, Patrick Yakowa, died in the helicopter crash in Bayelsa state in the Niger Delta. The People’s Democratic Party’s statement described Yakowa’s death as a “colossal loss.”

The statement said the former national security adviser, General Andrew Azazi, also died in the crash. Azazi was fired in June amid growing sectarian violence in Nigeria, but maintained close ties with the government.

Yushau Shuaib, a spokesman for Nigeria’s National Emergency Management Agency, said four other bodies had been found, but he could not immediately give their identities.

The crash occurred at about 3:30 p.m. after the navy helicopter took off from the village of Okoroba in Bayelsa state where officials had gathered to attend the burial of the father of a presidential aide, said Commodore Kabir Aliyu. He said that the helicopter was headed for Nigeria’s oil capital of Port Harcourt when it crashed in the Nembe area of Bayelsa state.

Aviation disasters remain common in Nigeria, despite efforts in recent years to improve air safety.

In October, a plane made a crash landing in central Nigeria. A state governor and five others sustained injuries but survived.

In June, a Dana Air MD-83 passenger plane crashed into a neighborhood in the commercial capital of Lagos, killing 153 people onboard and at least 10 people on the ground. It was Nigeria’s worst air crash in nearly two decades.

In March, a police helicopter carrying a high-ranking police official crashed in the central Nigerian city of Jos, killing four people.

Africa News Headlines – Yahoo! News

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RIM shows how BlackBerry 10 touch screen keys could rival even its traditional keyboards [video]

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“Modern Family” star’s dad granted control of her estate

LOS ANGELES (Reuters) – The father of “Modern Family” star Ariel Winter was given temporary control over the teenage actress’ estate on Wednesday in a court-approved settlement in Los Angeles after allegations that her mother had abused her.

Winter, 14, who plays the brainy and precocious teenager Alex Dunphy on the Emmy-winning ABC comedy, will remain under temporary guardianship of her older sister, Shanelle Gray, under the settlement, court officials said.

Los Angeles Superior Court Judge Michael Levanas scheduled a hearing for March 29 in which he could hand permanent guardianship over to Gray and control of Winter’s estate to her father, Glenn Workman.

Gray, 34, was first awarded temporary guardianship of the actress in October.

Winter’s mother, Chrisoula Workman, has denied allegations, earlier submitted in court documents, that she verbally and physically abused her daughter.

Messages left with Winter’s publicist and attorney seeking comment were not immediately returned.

“Modern Family” portrays the lives of three zany families and has won three consecutive Emmy awards as American television’s best comedy series.

(Reporting By Eric Kelsey; Editing by Nick Zieminski)

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Clinton sustains concussion; Benghazi testimony postponed

WASHINGTON (Reuters) – Secretary of State Hillary Clinton, who canceled an overseas trip last weekend because of illness, suffered a concussion after fainting due to dehydration, prompting the postponement of her scheduled congressional testimony on the attack on a U.S. mission in Libya, officials said on Saturday.

“While suffering from a stomach virus, Secretary Clinton became dehydrated and fainted, sustaining a concussion,” State Department spokesman Philippe Reines said in a statement.

“She has been recovering at home and will continue to be monitored regularly by her doctors,” Reines said, adding that she would work from home and stay in regular contact with other top officials.

Clinton, 65, fell ill with a stomach virus last weekend and was forced to cancel a planned trip to the Middle East and North Africa. The virus also hit other members of her staff, who were returning with her from a European trip, and was described as uncomfortable, but not medically serious.

Clinton’s doctors, Lisa Bardack of the Mt. Kisco Medical Group and Gigi El-Bayoumi of George Washington University, issued a statement saying that Clinton fainted as a result of “extreme dehydration” due to the virus.

“Over the course of this week we evaluated her and ultimately determined she had also sustained a concussion,” the doctors said in their statement, which was distributed by the State Department.

“We recommended that the secretary continue to rest and avoid any strenuous activity, and strongly advised her to cancel all work events for the coming week. We will continue to monitor her progress as she makes a full recovery.”

Clinton has often been cited as a potential Democratic candidate for the U.S. presidency in 2016 and frequently refers to her general good health. She said in an interview with ABC broadcast on Wednesday that she has “incredible stamina and energy.”

She has maintained a punishing schedule in her final weeks as the top U.S. diplomat, a position she intends to leave toward the end of January when U.S. President Barack Obama is sworn in for a second term.

Obama telephoned Clinton to wish her well, White House spokesman Tommy Vietor said.

BENGHAZI TESTIMONY NEXT WEEK

Clinton had been expected to testify on December 20 before the House of Representatives and Senate foreign affairs committees on a report on the deadly attack on the U.S. diplomatic post in Benghazi, Libya, in September that killed the U.S. ambassador and three other Americans and raised questions about security at far-flung posts.

Jodi Seth, a spokeswoman for Senate Foreign Relations Committee head John Kerry, said that given her condition, Clinton’s testimony would be postponed, but did not say until when. Seth said the planned hearings would be held with other senior officials appearing in Clinton’s place.

The Republican chair of the House of Representatives Foreign Affairs Committee, Ileana Ros-Lehtinen, issued a statement saying she was sorry to hear of Clinton’s ill health, but it was “unfortunate” she would be unable to testify before the committee next week.

“We still don’t have information from the Obama Administration on what went so tragically wrong in Benghazi that resulted in the deaths of four patriotic Americans,” Ros-Lehtinen said.

“We have been combing through classified and unclassified documents and have tough questions about State Department threat assessments and decision-making on Benghazi. This requires a public appearance by the Secretary of State herself.”

Ros-Lehtinen’s statement said William Burns and Thomas Nides, deputy secretaries of state, would provide testimony in Clinton’s place.

REPUBLICAN CRITICISM

Republicans have criticized the Democratic Obama administration for its early public explanations of the attack.

Much of the criticism focused on U.S. Ambassador to the United Nations Susan Rice, who on Thursday said she was withdrawing her name from consideration to replace Clinton as secretary of state to avoid a potentially disruptive confirmation process.

Clinton has appointed a special panel known as an accountability review board to assess both the Benghazi incident and the official response to it.

The board’s report, which will contain both classified and unclassified sections, is expected to be complete next week and Clinton has promised to be as transparent as possible with Congress in sharing its findings.

Clinton, whose husband, Bill Clinton, was president from 1993 to 2001 and who herself came tantalizingly close to winning the Democratic presidential nomination four years ago, has used her star power to promote U.S. interests around the world since Obama named her to lead the State Department in 2009.

She has consistently been rated as the most popular member of Obama’s Cabinet, leading to speculation she might mount another White House bid in 2016, although she herself has played down suggestions that she still hopes to become president.

“I’ve said I really don’t believe that that’s something I will do again. I am so grateful I had the experience of doing it before,” Clinton told ABC’s Barbara Walters in the interview broadcast on Wednesday.

“I just want to see what else is out there. I’ve been doing … this incredibly important and … satisfying work here in Washington, as I say, for 20 years. I want to get out and spend some time looking at what else I can do to contribute.”

(Reporting by Andrew Quinn and Lisa Lambert; Editing by Will Dunham, David Brunnstrom and Mohammad Zargham)

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Sandy Hook shooter a mystery to neighbors and former classmates

Police prohibited access on Saturday to the neighborhood where gunman Adam Lanza lived. (Jason Sickles/Yahoo N …

[Updated at 8:10 p.m. ET]

NEWTOWN, CONN. -- Even to his neighbors, the gunman who massacred 26 kids and educators at an elementary school here still remains somewhat of a mystery.

"I want to know more," said Len Strocchia, who lives less than half mile away from the shooter's house.

Authorities say Adam Lanza, 20, killed his mother, Nancy Lanza, at their well-to-do home Friday morning before driving to Sandy Hook Elementary where he stormed in and committed one of the worst mass school shootings in U.S. history. The victims were 20 first-graders and six staffers, including the principal.

Adam Lanza's parents divorced a few years ago. Late Saturday, his father, Peter Lanza, wrote his family is, "in a state of disbelief and trying to find whatever answers we can."

"Our family is grieving along with all those who have been affected by this enormous tragedy," he explained in a written statement. "No words can truly express how heartbroken we are."

On Saturday, Strocchia walked down the street to see the shooter's house firsthand, but was forbidden to go past a police barricade near the Lanza home.

"I want to know which house and why I didn't know them," the father of two teenagers told Yahoo News.

[RELATED: Names and ages of shooting victims]

Another neighbor did know Adam Lanza. Megan, who declined to give her last name, was a classmate of the shooter from kindergarten through middle school.

"He wasn't like a weird kid as a child," Megan told Yahoo News. "He was just quiet. He didn't put off a friendly vibe."

But she said he was one of the smartest students in school.

"He was always participating in class and everything," Megan said.

But she said her former classmate with whom she rode the school bus sort of vanished after their junior high years.

"He almost fell off the radar in middle school," Megan told Yahoo News.

The shooter's aunt, Marsha Lanza, told ABC News that his mother pulled him out of Newtown public schools because of a dispute over the district's plan for her son.

"She mentioned she wound up home-schooling him because she battled with the school district," the aunt told ABC News.

Police said Adam Lanza, dressed in all black, was armed with two handguns and a semi-automatic Bushmaster .223 rifle when he barged into the school.

[RELATED: Obama to visit Connecticut families]

Dr. Carver, the medical examiner, said it appears that all the children where gunned down by the military-style rifle. Authorities said all the weapons were legally owned and registered by Nancy Lanza, the shooter's mother.

Newtown school superintendent Janet Robinson told reporters Saturday that Nancy Lanza had no connection to Sandy Hook school, despite initial reports Lanza was on the faculty or a substitute teacher there.

"I'm sickened that this mass murder was done with legal guns," said Strocchia, the neighbor. "I'd like to find out why. Why did she have guns?"

But acquaintances of Nancy Lanza told The New York Times that the 52-year-old mother was a big fan of guns.

"She had several different guns," Dan Holmes told the newspaper. "I don't know how many. She would go target shooting with her kids."

Reports that Adam Lanza may have suffered from a personality disorder are being supported by people who knew the mother to have a troubled son.

According to the Times story, a friend said Nancy Lanza was "handling a very difficult situation with uncommon grace."

Investigators revealed on Saturday that evidence found in the Lanza might provide a possible motive for the massacre.

State police spokesman Lt. Paul Vance declined to provide specifics about the evidence but said, "we're hopeful it will paint a complete picture."

Neighbors like Strocchia are searching for answers too. However, he said, said he harbors no anger.

"I'm thankful my children are alive," he said. "I have compassion and mercy. There was something wrong with him."

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NKorea rocket launch shows young leader as gambler

PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.

Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.

The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.

Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.

Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.

Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.

The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.

“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.

The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.

Top officials followed Kim in shrugging off international condemnation.

Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.

North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.

Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”

But it is the son who will bask in the glory, and face the international censure that may follow.

Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.

“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.

“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”

Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.

Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.

“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.

Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”

Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.

The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.

On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.

Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.

North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.

The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.

Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.

If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.

____

Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.

Asia News Headlines – Yahoo! News

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Microsoft, Motorola file to keep patent case details private

SEATTLE (Reuters) – Microsoft Corp and Google Inc‘s Motorola Mobility unit have requested a federal judge in Seattle to keep secret from the public various details from their recent trial concerning the value of technology patents and the two companies’ attempts at a settlement.

Microsoft and Motorola, acquired by Google earlier this year, are preparing post-trial briefs to present to a judge as he decides the outcome of a week-long trial last month to establish what rates Microsoft should pay Motorola for use of standard, essential wireless technology used in its Xbox game console and other products.

The case is just one strand of litigation in an industry-wide dispute over ownership of the underlying technology and the design of smartphones, which has drawn in Apple Inc, Samsung Electronics Co Ltd, Nokia and others.

In a filing with the Western District of Washington federal court in Seattle on Friday, Microsoft and Motorola asked the judge to allow them to file certain parts of their post-trial submissions under seal and redact those details in the public record.

The details concern terms of Motorola‘s licenses with third parties and Microsoft‘s business and marketing plans for future products. During the trial, which ran from November 13-20, U.S. District Judge James Robart cleared the court when such sensitive or trade secret details were discussed.

“For the same compelling reasons that the court sealed this evidence for purposes of trial, it would be consistent and appropriate to take the same approach in connection with the parties’ post-trial submissions,” the two companies argued in the court filing.

The judge has so far been understanding of the companies’ desire to keep private details of their patent royalties and future plans, although that has perplexed some spectators who believe trials in public courts should be fully open to the public.

In addition, Motorola asked the judge to seal some documents relating to settlement negotiations between the two companies, arguing that keeping those details secret would encourage openness in future talks and make a settlement more likely.

Judge Robart is not expected to rule on the case until the new year.

The case in U.S. District Court, Western District of Washington is Microsoft Corp. vs. Motorola Inc., 10-cv-1823.

(Reporting by Bill Rigby; Editing by Richard Chang)

Tech News Headlines – Yahoo! News

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Owner of Rivera plane being investigated by DEA

PHOENIX (AP) — The company that owns a luxury jet that crashed and killed Latin music star Jenni Rivera is under investigation by the U.S. Drug Enforcement Administration, and the agency seized two of its planes earlier this year as part of the ongoing probe.

DEA spokeswoman Lisa Webb Johnson confirmed Thursday the planes owned by Las Vegas-based Starwood Management were seized in Texas and Arizona, but she declined to discuss details of the case. The agency also has subpoenaed all the company’s records, including any correspondence it has had with a former Tijuana mayor who U.S. law enforcement officials have long suspected has ties to organized crime.

The man widely believed to be behind the aviation company is an ex-convict named Christian Esquino, 50, who has a long and checkered legal past. Corporate records list his sister-in-law as the company’s only officer, but insurance companies that cover some of the firm’s planes say in court documents that the woman is merely a front and that Esquino is the one in charge.

Esquino’s legal woes date back decades. He pleaded guilty to a fraud charge that stemmed from a major drug investigation in Florida in the early 1990s and most recently was sentenced to two years in federal prison in a California aviation fraud case. Esquino, a Mexican citizen, was deported upon his release. Esquino and various other companies he has either been involved with or owns have also been sued for failing to pay millions of dollars in loans, according to court records.

The 43-year-old California-born Rivera died at the peak of her career when the plane she was traveling in nose-dived into the ground while flying from the northern Mexican city of Monterrey to the central city of Toluca early Sunday morning. She was perhaps the most successful female singer in grupero, a male-dominated Mexico regional style, and had branched out into acting and reality television.

It remained unclear Thursday exactly what caused the crash and why Rivera was on Esquino’s plane. The 78-year-old pilot and five other people were also killed. Esquino was not on the plane.

The late singer’s brother, Pedro Rivera Jr., said that he didn’t know anything about the owner or why or how she ended up in his plane.

Esquino told the Los Angeles Times in a telephone interview from Mexico City earlier this week that the singer was considering buying the aircraft from Starwood for $ 250,000 and the flight was offered as a test ride. He disputed reports that he owns Starwood, maintaining that he is merely the company’s operations manager “with the expertise.”

In response to an email from The Associated Press, Esquino said he did not want to comment. Calls to various phone numbers associated with him rang unanswered.

Esquino is no stranger to tangles with the law. He was indicted in the early 1990s along with 12 other defendants in a major federal drug investigation that claimed the suspects planned to sell more than 480 kilograms of cocaine, according to court records. He eventually pleaded guilty to conspiring to conceal money from the IRS and was sentenced to five years in prison, but much of the term was suspended for reasons that weren’t immediately clear.

He served about five months in prison before being released.

Cynthia Hawkins, a former assistant U.S. attorney who handled the case and is now in private practice in Orlando, remembered the investigation well.

“It was huge,” Hawkins said Thursday. “This was an international smuggling group.”

She said the case began with the arrest of Robert Castoro, who was at the time considered one of the most prolific smugglers of marijuana and cocaine into Florida from direct ties to Colombian drug cartels in the 1980s. Castoro was convicted in 1988 and sentenced to life in prison, but he then began cooperating with authorities, leading to his sentence being reduced to just 10 years, Hawkins said.

“Castoro cooperated for years,” she said. “We put hundreds of people in jail.”

He eventually gave up another smuggler, Damian Tedone, who was indicted in the early 1990s along with Esquino and 11 others in a conspiracy involving drug smuggling in Florida in the 1980s at a time when the state was the epicenter of the nation’s cocaine trade.

Tedone also cooperated with authorities and has since been released from prison. Telephone messages left Thursday for both Tedone and Castoro were not returned.

Esquino eventually pleaded guilty to the lesser offense of concealing money from the IRS.

Joseph Milchen, Esquino’s attorney at the time, said Thursday the case eventually revolved around his client “bringing money into the United States without declaring it.”

However, Milchen acknowledged that a plane purchased by Esquino was “used to smuggle drugs.”

He denied his former client has ever had anything to do with illegal narcotics.

“The only thing he has ever done is with airplanes,” Milchen said.

Court filings also indicate Esquino was sentenced to two years in federal prison after pleading guilty in 2004 to committing fraud involving aircraft he purchased in Mexico, then falsified the planes’ log books and re-sold them in the United States.

Also in 2004, a federal judge ordered him and one of his companies to pay a creditor $ 6.2 million after being accused of failing to pay debts to a bank.

As the years passed, Esquino’s troubles only grew.

In February this year, a Gulfstream G-1159A plane the government valued at $ 500,000 was seized by the U.S. Marshals Service on behalf of the DEA after landing in Tucson on a flight that originated in Mexico

Four months later, the DEA subpoenaed all of Starwood’s records dating to Dec. 13, 2007, including federal and state income tax documents, bank deposit information, records on all company assets and sales, and the entity’s relationship with Esquino and more than a dozen companies and individuals, including former Tijuana Mayor Jorge Hank-Rhon, a gambling mogul and a member of one of Mexico’s most powerful families. U.S. law enforcement officials have long suspected Hank-Rhon is tied to organized crime but no allegations have been proven. He has consistently denied any criminal involvement.

He was arrested in Mexico last year on weapons charges and on suspicion of ordering the murder of his son’s former girlfriend. He was later freed for lack of evidence.

The subpoena was obtained by the U-T San Diego newspaper.

A Starwood attorney listed on the subpoena, Jeremy Schuster, declined Thursday to provide details.

“We don’t comment on matters involving clients,” he said.

In September, the DEA seized another Starwood plane — a 1977 Hawker 700 with an insured value of $ 1 million — after it landed in McAllen, Texas, from a flight from Mexico.

Insurers of both aircraft have since filed complaints in federal court in Nevada seeking to have the Starwood policies nullified, in part, because they say Esquino lied in the application process when he noted he had never been indicted on drug-related criminal charges. Both companies said they would not have issued the policies had he been truthful.

Another attorney for Starwood has not responded to phone and email messages seeking comment, and no one was at the address listed at its Las Vegas headquarters. The address is a post office box in a shipping and mailing store located between a tuxedo rental shop and a supermarket in a shopping center several miles west of the Las Vegas Strip.

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Associated Press writers Elliot Spagat in San Diego and Ken Ritter in Las Vegas contributed to this report.

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