Tuesday, 7 October 2014

POLITICAL NEWS: APC will govern Imo state for the next 20 years and beyond – Okorocha

The governor of Imo State, Owelle Rochas Okorocha has said that the All Progressive Congress, APC, will govern Imo State for the next 20 years and even beyond under the philosophies of the Rescue Mission administration in the state.



According to Governor Okorocha, it is going to be from one Rescue Mission administration in the state to another, under the canopy of APC for 20 years and beyond, and that the issue of governance in Imo State has gone beyond making Rochas Okorocha governor.

The governor spoke while inaugurating Officers and Members of the state Campaign Council on Tuesday, October 7, 2014, adding that the philosophies of the Rescue Mission have to be institutionalized for the rapid development of the state.



His words; "We are working. And with that, we have been able to silence the PDP, and we intend to sustain that for life. We have no gun, but the people. Our work or the performance of the administration has destroyed the PDP in the state. We only need to close ranks to achieve the goal. I am preparing the ground so that the younger ones will have opportunities tomorrow"



He continued, "We have sent those who held the State on ground for decades parking. The Rescue Mission administration under the aegis of APC will continue to grow from strength to strength. The masses are behind us because they have seen the difference. We won't relent. We will not rest on our oars. We will continue to empower the youths to be useful to themselves and to the society, and not as thugs like the PDP did"

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BREAKING NEWS: At Last, Obi Joins the PDP

The former Governor of Anambra State, Mr. Peter Obi today played host to who-is-who in the People's Democratic Party(PDP), in the South-East at his GRA Onitsha home Tuesday.

Led by the Deputy Senate President, Sen. Ike Ekwerumadu; Deputy Speaker, Hon. Emeka Ihedioha; SGF, Sen. Pius Anyim Pius and the Chairman of the South-East Governors' Forum, others in the entourage includes, the Governor of Akwa-Ibom State, Dr. Godswill Akpabio, Governor Elechi(rep) ;former Governor, Okwesilieze Nwodo,former Senate President, Adolphus Wabara, Sen. Uche Chukwumerije, Emma Anosike, Sen. Hope Uzodinma, Sen. Ben Obi, Sen. Igwe Paulinus, Kema Chikwe, Others are Hons. Ozongbachi, Offor Chukwuegbo, Uche Ekwunife, Chris Azobogu, Fort Dike, Jerry Alagboso, Toby Okechukwu, Kingsley Ebenyi, Onyechi Ezenwa, Ibechie, Eucharia Anazodo, Chuma Nzeribe, Princess Adaeze Oduah, Arua Arunsi, Egwuatu Cyril, Anayo Nebe, Col Usobundu, Ifeanyi Ubah. Members of the Federal EXCO were there: Emeka Nwogu, Prof. Chinedu Nebo, Osita Chidoka, Valarie Onwualili, among many others

On their mission, the National Chairman of the PDP, Alhaji Adamu Muazu, represented by the publicity Secretary, Olisa Metuh said the visit was as a result of the resolution by the entire South-East to pay him a visit and persuade him to join the PDP for more meaningful contribution to national affairs. Olisa who said that PDP had never lost election in the East, but to Peter Obi as a person because of his integrity, forthrightness, hardwork, honesty, which had made the people to love him and to be willing to follow him at all times. Citing the recent joining of the PDP by Governor Mimiko, Mr. Metuh said time was ripe for Obi to join.

Speaking, Gov. Akpabio agreed that the PDP always lost in Anambra because of Obi. He said he wished they met Obi before the governorship election in Anambra that PDP would have won. However, he said it was not late for him to join the PDP and work at the centre for the good of the country. He described Obi as a man of integrity, who comes out strongly on issues who would be an asset to the country at the centre. He called Obi and his wife to be proud of himself saying "If some of your people do not believe in you, if we do not admire you, if they do not realize your potentials, we gathered here are telling you that Nigerians believe in you and admire you.

Speaking during the visit, the Governor of Abia State, Chief Theodore Orji said: " We are here today to discuss to future and progress of the South-East geo-political zone with our brother Mr. Peter Obi, who was the immediate Governor of Anambra State.Having reviewed with him the state of the country and how it affects our people, we came to the conclusion that our interest in the country is better served when we remain together as brothers and sister under one party and speak with one voice, which Obi has championed over the years.We all agreed that politics globally is dynamic and changes from time to time. In Nigeria, for example, we have moved from regional parties to regional politics, which requires our people staying together and speaking with one voice. We in the East should do the same in the interest of our people.We therefore appealed to him to join the people's Democratic Party (PDP), since that is the party majority of our people belong to. Further, Chief Orji said Obi was the type of person the PDP needed to move on because of his integrity and that it was not everybody that the leadership of an organization would be united in wooing him to join the party.

Contributing, the Deputy Senate President, Hon. Ike Ekweremadu said Obi, even when in APGA, extended hands of friendship to everybody that would contribute to the development of Anambra State. He said that Obi's demonstration of leadership, integrity, his friendship with the President and commitment to Nigeria prompted them to come and appeal to him to join the PDP.

Also speaking, the Deputy Speaker, Hon. Emeka Ihedioha said the decision to come and appeal to Mr. Peter Obi to join the PDP was a collective one borne out of How importantly Nigerians take Mr. Obi.

The Secretary to the Government of the Federation, Sen. Anyim Pius Anyim, said he was optimistic the forum would end up convincing the Gov. to make definite pronouncement today. He said the delegation would not, in fact, leave his house until he joins."

Thereafter, the former Chairman of the PDP, Chief Okwesilieze Nwodo in moving the motion for Obi to join them said: "in view of Mr. Obi's integrity, political sagacity, marvellous work in Anambra State, stabilizing influence on the Federal Government, we the leaders of the PDP move the motion that you are the one we are waiting for in the PDP.

The motion was seconded by the Minister of Works, Chief Emeka Nwogu, who said that Peter Obi was one good man the PDP needed for his utility not just to the President, but to the country at large.

Mrs Kema Chikwe, speaking on behalf of woman said Obi was like the woman having an affair, and begot children, and that the event of today was akin to his mistress coming with his children to ask for the legalization of the marriage. He described Obi as sharing the same vision of a prosperous country with the PDP and that we would contribute more to Nigeria by joining a national party

The former Governor, Mr. Peter Obi, who was called upon to respond to the request by Sen. Ben Obi, said he was humbled by the visit thus: "I most sincerely appreciate this visit by people I consider as important political leaders from the South-East. I thank you for your continued belief and commitment to the welfare of our people and the progress of our country.

I have in the past worked closely with all of you and you know my belief about our zone working together. I assure you that we will continue to work even closer as a team in the interest of our people. Regarding your visit of today, let me assure you that I heard your kind and passionate requests and that your journey would not be in vain but in the best interest of our people.

Further Obi said the issue of joining a National party is not about happening in APGA, but because of the need to be a competitor and not a spectator in national affairs.

Finally, after protracted request that he be given time to get back to them and the insistence of the forum that time was of essence, he joined.

Taking unawares by the number of people that flooded to Obi's house, canopies were hurriedly set up to accommodate them. One of Obi's aides said they thought it was just a visit by a few PDP members as their oga told them but were surprised that it turned out to be a carnival.

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TECHNOLOGY NEWS: Twitter engineer, LGBT activist pleads guilty to domestic violence

LOS ANGELES (Reuters) - A senior Twitter engineer hailed as one of the most important gay or transgender people in the tech industry was sentenced on Tuesday to three years probation after pleading guilty to false imprisonment and domestic violence charges, San Francisco prosecutors said.



Dana Contreras, known professionally as Dana McCallum, was also ordered to attend 52 weeks of domestic violence classes and stay away from her wife, the victim in the case, as part of a plea deal with prosecutors.

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Under that agreement prosecutors agreed to drop more serious rape charges against Contreras, 33, who was arrested in January after the attack, said Max Szabo, a spokesman for the San Francisco District Attorney's Office.



Contreras' defense attorney could not be reached for comment following the hearing.



In addition to her job as an engineer for Twitter, Contreras, who is transgendered, has advocated for gay, women's and transgender rights.



In December of 2013, the tech website Business Insider ranked Contreras No. 5 on its list of the 31 most important LGBT people in tech, calling her "one of the geniuses behind Twitter."



She is also a licensed commercial pilot who plays the bass in her spare time.



Representatives for Twitter Inc could not be reached for comment following the hearing.



(This version of the story corrects first and third paragraphs to show defendant also pleaded guilty to false imprisonment)



(Reporting by Dan Whitcomb; Editing by Eric Walsh)

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BUSINESS NEWS: Rich shoppers seen boosting U.S. holidays, deep discounts likely

By Nandita Bose

CHICAGO (Reuters) - Wealthier U.S. shoppers are likely to drive the most bountiful holiday season in three years as retailers slash prices to cope with tighter budgets, analysts said on Tuesday, as a new survey showed 2014 retail sales rising 4.1 percent.

The National Retail Federation predicted retail sales would climb to $616.9 billion, outpacing last year's 3.1 percent growth. Sales rose more than 5 percent in 2010 and 2011, and 3.5 percent in 2012, and growth averaged 2.9 percent over the past decade, NRF said.

The group's forecast is one of the closely watched benchmarks ahead of the holiday season, which can account for 20 to 40 percent of annual sales for many retailers.

"While expectations for sales growth are upbeat, it goes without saying there still remains some uneasiness and anxiety among consumers when it comes to their purchase decisions," NRF President and Chief Executive Matthew Shay said.

Online sales are still growing rapidly as shoppers seek deals, convenience, and are pressed for time, especially during the holiday crunch, market studies show.

About 41 percent of shoppers will increase their online spending in 2014, PwC said on Tuesday. But 72 percent of households expect to spend $684 this holiday season, down from $735 in 2013, it added.

NRF's Shop.org division forecast an 8 to 11 percent growth in online holiday sales to as much as $105 billion. Year-ago figures were not immediately available.

The holiday season is a major U.S. economic growth marker, as consumer spending accounts for about 70 percent of Gross Domestic Product.

SURVIVALISTS VS SELECTIONISTS

PwC split consumers into those who earn more than $50,000 a year, and those who make less.

"The spending divide among shoppers is widening, creating two distinct groups that we are tracking – survivalists and selectionists – and retailers must cater to both segments," said Steven Barr, leader, retail and consumer practice, at PwC.

Specialty stores are likely to fare better than convenience and discount stores and supermarket operators, noted Marcie Merriman, executive director of retail strategy and customer engagement at EY.

"We are likely to see continuing growth for retailers catering to upper-income consumers but at the same time the everyday consumer, the low-income shopper is not feeling a lot of relief and there is a good chance that will get reflected in holiday sales," Merriman said.

The NRF's forecast is in line with that of Deloitte, which on Sept. 24 forecast sales rising by a range of 4 percent to 4.5 percent for November-to-January, versus 2.8 percent growth a year earlier.

AlixPartners is less optimistic, projecting gains of 3.2 percent to 3.8 percent in 2014.

(Editing by Chizu Nomiyama, Matthew Lewis, Jilian Mincer and Richard Chang)



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BUSINESS NEWS: Barclays says New York 'dark pool' suit oversteps legal bounds

By John McCrank

NEW YORK (Reuters) - Barclays PLC on Tuesday urged a New York court to toss the state attorney general's fraud case over how the bank ran its private U.S. trading venue, saying the case oversteps state securities laws and offers no proof any investors were hurt.

New York Attorney General Eric Schneiderman filed a lawsuit on June 25 accusing the London-based bank of giving an unfair edge to high-frequency traders and lying to other customers about it. It is the highest-profile case in a recent raft of investigations by authorities into the fairness of high-speed, automated trading practices and alternative trading systems, or "dark pools."

Barclays said in its court filing that Schneiderman was trying to dramatically expand the powers of a New York statute known as the Martin Act, which aims to protect investors when the purchase, sale, or exchange of a security is misrepresented. It said Schneiderman had conceded in an earlier filing that the lawsuit was based on claims that Barclays had misrepresented how it operated its dark pool rather than about any particular security transaction.

"The NYAG's reading of the Martin Act would render the Act virtually unlimited in scope," Barclays said in the filing, a response to Schneiderman's Sept. 16 filing disputing an earlier motion to dismiss the case.

Schneiderman spokesman Matt Mittenthal declined comment.

Dark pools are used to trade big blocks of shares anonymously. The market is not informed of the trades until they are completed, minimizing the risk that others will get wind of the trade and move against it.

Barclays had promised investors they would be protected from "predatory" and "toxic" trades inside its dark pool. Schneiderman said he had evidence the bank falsified marketing materials and misled big institutional clients in an effort to grow its dark pool to increase revenues and bonuses.

The Barclays filing said Schneiderman's arguments were "creating a perception of wrongdoing where none exists," and said that nowhere in the lawsuit does the attorney general allege Barclays' customers failed to get quality executions.

It pointed to one example in which the attorney general said Barclays had told clients that no more than 6 percent of trading in its dark pool was "aggressive," while separately telling some high frequency traders that 25 percent of the orders that took liquidity, or bought shares, were "aggressive."

Barclays said Schneiderman failed to distinguish the difference between liquidity-taking orders in the later figure, versus all trading activity in the former figure.

"This is akin to the NYAG bringing a fraud claim against a grocer who tells one customer that 6 percent of all food he sells are apples, and another customer that 25 percent of all fruit he sells are apples. There is simply no fraud," Barclays said.

(Reporting by John McCrank; additional reporting by Karen Freifeld)



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BUSINESS NEWS: Wal-Mart to end healthcare benefits for some part-time workers

(Reuters) - Wal-Mart Stores Inc (WMT.N), the biggest private-sector employer in the United States, said on Tuesday it was ending healthcare coverage for tens of thousands of part-time workers to cut costs in a move that could prompt other companies to follow suit.

The world's largest retailer said it will stop offering health benefits for employees who work less than 30 hours a week, a change that will affect 2 percent of its U.S. workforce of about 1.3 million, or some 26,000 people.

Coverage will be discontinued from Jan. 1, 2015. On that date the Affordable Care Act, popularly known as Obamacare, will require all companies employing 50 or more people to offer health insurance to those working at least 30 hours a week.

Wal-Mart flagged rising health care costs as a problem in August, when it cut its annual profit forecast. It said more people than expected had enrolled in its plans and said its annual forecast for health care costs had increased by 50 percent.

"Like every company, Wal-Mart continues to face rising health care costs," Sally Welborn, senior vice president of global benefits, wrote in a blog on the company's website. "This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment."

The move came a week before Chief Executive Officer Doug McMillion and other top executives are due to address fund managers and analysts at an annual meeting for the investment community. Wal-Mart has been struggling to boost profits, with same-store sales flat or declining for the past six quarters.

Brian Yarbrough, an analyst at Edward Jones, said the decision by Wal-Mart could force other retailers to rethink their offering such benefits, especially given tough competition in the industry.

All retailers are "trying to cut expenses, to keep things lean," Yarbrough said. "At some point you start looking across the board, and this is probably the next place to start looking at cuts."

Wal-Mart said the move will bring it in line with many competitors.

Among others, Wal-Mart cited Target Corp (TGT.N), which said in January it will stop offering coverage to part-time workers, and Home Depot Inc (HD.N), which said in September it will shift coverage for part-time staff to public exchanges.

Brian J. Marcotte, president and CEO of the National Business Group on Health, which represents large employers on health issues, said many companies decided before the enactment of Obamacare not to provide health care coverage to part-time workers.

"It comes down to these very competitive industries like retail and hospitality that operate with very tight margins and have to make difficult decisions on health care costs."

He said in some instances, these workers would be eligible for a spouse's healthcare plan or to participate in a public exchange. Depending on their income, they might be eligible for a subsidy.

Wal-Mart's Welborn told a conference call that the company had not yet figured out how much it would save by cutting benefits. The company said in August it expected to spend $500 million on U.S. healthcare this year, up from its estimate of $330 million just a few months earlier.

Wal-Mart also said on Tuesday it will increase premiums for all of its U.S. employees in 2015. Premiums will increase by $3.50 to $21.90 per pay period for the most popular and lowest-cost employee-only plans.

The company said it was changing some eligibility terms for part-time employees working more than 30 hours a week, but did not provide details.

For eligible workers, both full and part-time, the company said it will continue to provide options that include no lifetime maximum, preventative care covered 100 percent, and up to $1,000 to help pay for medical expenses.

Wal-Mart's shares were unchanged at $77.35 in afternoon trading on the New York Stock Exchange.

(Reporting by Siddharth Cavale in Bangalore, Nathan Layne in Chicago, Jilian Mincer in New York; Editing by Ted Kerr and Jeffrey Benkoe)



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BUSINESS NEWS: Goldman Sachs ordered to pay Libyan fund's legal costs

LONDON (Reuters) - Goldman Sachs has been ordered to pay the Libyan Investment Authority (LIA) 200,000 pounds ($321,820) in legal costs as part of a lawsuit brought by the fund over $1 billion in trades that ended up worthless.



The LIA filed the suit against Goldman in London's High Court in January, alleging the Wall Street investment bank exploited a position of trust by encouraging the fund to invest in a series of equity derivatives trades that expired as worthless in 2011.



Goldman has called the case without merit and said that it intends to contest it vigorously.



In April the bank filed a summary judgment application - a request to decide a claim without going to trial - but later withdrew it.



The two parties met in court for the first time this week for a hearing to discuss costs incurred in relation to the abandoned application, among other issues.



According to court documents, the LIA had originally sought $1 million in costs and had asked for 50 percent of that sum to be paid within 14 days.



The judge awarded an interim payment of 200,000 pounds to be paid within two weeks. A decision on any extra costs payments related to the summary judgment application will be made at a later date.



Goldman declined to comment on Tuesday's ruling.



The lawsuit will now proceed to trial in 2016, the LIA said in a statement.



(Reporting by Clare Hutchison; Editing by Pravin Char)





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TECHNOLOGY NEWS: Nokia to suspend production at Indian handset plant

(Reuters) - Nokia Oyj said it would suspend mobile handset production at its troubled Chennai facility in India from Nov. 1 given that the company has yet to resolve a tax dispute with the Indian government.



Nokia sold its mobile phone business to Microsoft in April, but it was forced to leave the Indian factory out of the deal due to the tax dispute with Indian authorities. It continued to operate the factory as a contract manufacturing unit for Microsoft.



"Microsoft has informed Nokia that it will be terminating the manufacturing services defined in the agreement with effect from Nov. 1. In absence of further orders from Microsoft, Nokia will suspend handset production at the Sriperumbudur facility," Nokia said in a statement on Tuesday.



Nokia's business now includes network equipment, navigation technology and patents.



The plant in Chennai was among Nokia's biggest for making handsets but has suffered after the company got caught in the tax dispute.



In April Nokia introduced a voluntary retirement scheme at the factory after a review in which it considered the "predictability and stability of the regulatory environment" in countries where it operates. At that time the plant employed about 6,600 full-time workers.



An asset freeze imposed by the tax department stops Nokia from "exploring potential opportunities for the transfer of the factory to a successor to support the long-term viability of the established, fully functional electronics manufacturing ecosystem," the company said.



(Reporting by Nivedita Bhattacharjee in Mumbai and Jussi Rosendahl in Helsinki; editing by Jane Baird)





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TECHNOLOGY NEWS: TowerJazz teams up with Korean institute to develop image sensor

TEL AVIV (Reuters) - TowerJazz, an Israeli speciality chip manufacturer, has revealed the first product resulting from a five-year linkup with a Korean research institute that could give it a growing presence in the expanding field of medical imaging technology.



The company said on Tuesday its collaboration with the government-funded Korea Electrotechnology Research Institute (KERI) had led to the development of an image sensor, capable of converting an image into an electronic signal in devices such as X-ray machines.



The sensor is expected to have annual sales of more than $10 million, relatively small in the context of TowerJazz's total sales. But it is potentially significant in the context of a global market for medical, dental and veterinary X-ray systems that reached $10 billion in 2012 and should increase to $12 billion by 2017, according to IMS Research.



TowerJazz has been working with KERI since 2009, contributing its knowledge in areas such as pixel or image analysis, as part of the development of products such as X-ray detectors used in dental CT scans and mammography.



The South Korean institute also has agreements with other commercial companies for technology transfer and detailed plans are under discussion.



KERI expects production of the image sensor to begin in 2015, the statement said.



(Reporting by Tova Cohen; Editing by David Holmes)





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TECHNOLOGY NEWS: Light bulb moment: Low-energy LED wins Nobel prize

By Niklas Pollard and Ben Hirschler

STOCKHOLM/LONDON (Reuters) - An American and two Japanese scientists won the 2014 Nobel Prize for Physics on Tuesday for inventing a new energy-efficient and environment-friendly light source, leading to the creation of modern LED light bulbs.

Isamu Akasaki and Hiroshi Amano of Japan and Japanese-born U.S. citizen Shuji Nakamura won the prize for developing the blue light-emitting diode (LED) -- the missing piece that now allows manufacturers to produce white-light lamps.

The arrival of such lamps is changing the way homes and workplaces are lit, offering a longer-lasting and more efficient alternative to the incandescent bulbs pioneered by Joseph Swan and Thomas Edison at the end of the 19th century.

"Red and green LEDs have been around for a long time but blue was really missing. Thanks to the blue LED we now can get white light sources which have very high energy efficiency and very long lifetime," Per Delsing, a member of the Royal Swedish Academy of Sciences, told a news conference.

The award is a notable example of a practical discovery winning the prize, in contrast to last year when the physics prize went to scientists who predicted the existence of the Higgs boson particle that explains how elementary matter attained the mass to form stars and planets.

"Incandescent light bulbs lit the 20th century; the 21st century will be lit by LED lamps," the academy said in a statement awarding the 8 million Swedish crown ($1.1 million) prize.

Frances Saunders, president of Britain's Institute of Physics, said the shift offered the potential for huge energy savings.

"With 20 percent of the world's electricity used for lighting, it's been calculated that optimal use of LED lighting could reduce this to 4 percent. Akasaki, Amano and Nakamura's research has made this possible and this prize recognizes this contribution," she said.

Akasaki is at the Meijo University in Japan and Amano is professor at the Nagoya University. Nakamura is at the University of California, Santa Barbara.

Contacted by telephone in the middle of the night, Nakamura said of the award: "It's unbelievable." In a later statement, he added: "It is very satisfying to see that my dream of LED lighting has become a reality."

Nakamura invented the blue-light emitting diode while working at Nichia, an unlisted firm, but received next to nothing from the company for the work until 2004, when a Tokyo court ordered Nichia to pay him a record 20 billion yen ($185 million). The company appealed and Nakamura settled for about $8 million.

CRACKING THE PROBLEM

Colin Humphreys, an expert at the University of Cambridge who is working on next-generation LED lighting, said the ability of the three scientists to crack the problem of blue light when others had failed was a tremendous achievement.

"Their invention of efficient blue LEDs has paved the way for the development of bright, cost effective and, importantly, energy efficient white lighting," he said.

In addition to lighting buildings, LED bulbs are transforming lamps in cars and the technology is also used as a light source in smartphones and computer screens.

The LED boom is upending the traditional lighting industry and General Electric, one of the biggest players, forecasts that LEDs will account for about 70 percent of a $100 billion market by 2020, compared with 18 percent in 2012.

LED lamps last 10 times longer than fluorescent bulbs and 100 times longer than traditional incandescent tungsten filament bulbs.

The scramble to develop more advanced and affordable versions creates both opportunities and challenges for companies, helping to drive a shake-up in the industry.

Osram was listed by its former parent Siemens last year and Philips, after making light bulbs for 123 years, also now plans to split off its lighting division.

As winners of the physics award, the three new laureates join some of the biggest names in science such as Albert Einstein, Niels Bohr and the husband and wife team of Pierre and Marie Curie.

The prize is also something of a boost to Japan's scientific reputation after it was tarnished by a discredited high profile stem cell study that had seemed to offer hope for replacing damaged cells or even growing new human organs.

It came on the same day as the author of that study, Haruko Obokata, was told by Waseda University that it will strip her of her doctorate unless she corrects it within a year.

Obokata's discovery was first trumpeted as a game-changer, but questions soon arose about the research and investigations found that Obokata had plagiarized and fabricated parts of the papers.

Physics was the second of this year's crop of Nobels. The prizes were first awarded in 1901 to honor achievements in science, literature and peace in accordance with the will of dynamite inventor and business tycoon Alfred Nobel.

(Additional reporting by Johan Ahlander in Stockholm and Elaine Lies in Tokyo; Editing by Alistair Scrutton, Kate Kelland, Angus MacSwan and Hugh Lawson)



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TECHNOLOGY NEWS: Yahoo downsizes engineering operations in India

SAN FRANCISCO (Reuters) - Yahoo Inc is reducing the size of its operations in Bangalore, India, the Internet company's largest engineering facility outside its California headquarters.



The company said in a statement on Tuesday it was consolidating "certain teams into fewer offices" in Bangalore, but that it would continue to have a presence there.



The move comes more than a week after activist investor Starboard Value LP publicly pressured Yahoo to cut what it referred to as a "bloated" cost structure.



Yahoo, a one-time Internet pioneer, is trying to revive stagnant revenue growth under the leadership of Marissa Mayer, who took the helm as Chief Executive two years ago.



Mayer has weighed layoffs in Bangalore since early in her tenure, people familiar with the matter previously told Reuters.



Yahoo had roughly 2,000 employees in Bangalore in March 2013, according to the sources. At the time, Mayer was weighing bringing certain jobs in India back to Sunnyvale, California, to unite more of Yahoo's product development at the home base, one of the sources said at the time.



"As we ensure that Yahoo is on a path of sustainable growth, we're looking at ways to achieve greater efficiency, collaboration and innovation across our business," Yahoo's statement on Tuesday said.



Shares of Yahoo were down 1.1 percent at $41.04 in midday trading on Tuesday.



(Reporting by Alexei Oreskovic in San Francisco and Nivedita Bhattacharjee in Mumbai; Editing by James Dalgleish)





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TECHNOLOGY NEWS: Flash-storage player SolidFire raises $82 million

By Sarah McBride



SAN FRANCISCO (Reuters) - SolidFire, a flash-storage company, said it has raised $82 million in new funding, a sign of the increasing appeal of technology that helps companies store data in new ways.



The cash will help the Boulder, Colorado-based company expand, with profitability expected in the next "couple of years," Chief Executive Dave Wright said in an interview.



SolidFire and rivals such as Pure Storage are taking on companies such as EMC and NetApp that built their reputations on disk-based storage. The newcomers rely on "flash," or chip-based storage, which generally works faster than older technologies.



Flash helps products integrate well with aspects of the cloud, in which data is accessed via the Internet rather than from on-site hardware. Companies are racing to adopt cloud technology because of its flexibility and lower costs compared with older methods.



"Our ability to leverage flash at cloud scale, that ultimately is what sets us up for long-term success," Wright said.



Greenspring Associates, an Owings Mill, Maryland-based fund, led the financing round with Silicon Valley Bank and an unnamed sovereign wealth fund. Existing investors NEA, Novak Biddle, Samsung Ventures and Valhalla Partners participated.



Earlier this year, competitor Pure Storage raised $225 million. Flash-based Nimble Storage and Violin Memory held initial public offerings last year.



(Reporting by Sarah McBride; Editing by Leslie Adler)





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TECHNOLOGY NEWS: Popular electricity smart meters in Spain can be hacked, researchers say

By Eric Auchard

FRANKFURT (Reuters) - Network-connected electricity meters installed in millions of homes across Spain lack essential security controls, according to two researchers who say the vulnerabilities leave room for hackers to carry out billing fraud or even cause blackouts.

    Security experts Javier Vazquez Vidal and Alberto Garcia Illera said in an interview on Monday that so-called smart meters installed by a Spanish utility to meet government energy efficiency goals lack basic safeguards to thwart hackers.

    The researchers said flawed code in reprogrammable memory chips enable them to remotely shut down power to individual households, switch meter readings to other customers and insert network "worms" that could cause widespread blackouts.

"You can just take over the hardware and inject your own stuff," Vazquez Vidal said, referring to the threat that hackers could insert malicious code into one box and use it to control nearby meters, and thereby cascade an attack across the network.

    Traditionally, energy utilities have kept power plants and mechanical electricity meters safe from cyber attack by keeping them insulated from the open Internet. Smart meters are connected over power line networks to give customers and utilities instant data about when, where and how much energy households use, enabling energy providers to monitor and adjust energy flows.

    The European Union wants more than two thirds of Europe's electricity users to have smart meters by 2020, an initiative it hopes will reduce energy use by three percent.

Over the last decade, most countries in Europe have mandated that smart meters be installed in homes and businesses. But as nationwide deployments have taken place in Italy and Sweden and are now in motion across France, Spain and the United Kingdom, experts have begun to uncover cybersecurity threats posed by some meters.

    The two researchers declined to identify the utility or European-based hardware manufacturer of the smart meters found to be vulnerable to attack. They will discuss their findings at the Black Hat Europe hacking conference in Amsterdam next week.

    "We are not releasing the exact details; we are not going to say how we did this," Garcia Illera said. "This issue has to be fixed."

The top power utilities in Spain are Endesa, Iberdrola and E.ON. Collectively, 8 million smart meters have been installed, or 30 percent of households.

The researchers said they had identified security flaws only in boxes from one meter manufacturer. Vazquez Vidal said he believes the utility may be able to patch the problem remotely, without being forced to send repair staff to upgrade each box physically.

An expert with Spain's markets and competition regulator, which oversees the smart meter mandate, said the agency was finishing a study on the threat of meter hacking and had not found any evidence it was taking place or at risk of occurring.

LEAVING THE DOOR OPEN

The security impact of a vast array of connected devices from smart meters to automobile controls to wearables such as smartwatches and health monitors are only now being seriously considered by industry, despite their growing use in daily life.

    The Spanish researchers said they hacked the meters by bypassing encryption that was designed to secure their communications.

    Vazquez Vidal and Garcia Illera said the meters use relatively easy to crack symmetric AES-128 encryption. The limited security appeared to be designed largely to prevent tampering with billing systems by fraudsters, they said.

Once through this first level of security, they said they could take full control of the box, switching its unique ID to impersonate other customer boxes or turning the meter itself into a weapon for launching attacks against the power network.

    "Oh wait? We can do this? We were really scared," Vazquez Vidal said. "We started thinking about the impact this could have. What happens if someone wants to attack an entire country?" he said.

    They say they tested the devices in their own lab, where they were able to reproduce various attacks in miniature using several of the smart meters.

    The same researchers last year uncovered weaknesses in computer chips found in many automobiles, which they said could boost performance or be used to hotwire a car or cause crashes.

    Vazquez Vidal, who said he was "unemployed and bored" at home in Cadiz when he carried out the smart meter research, subsequently was hired by a major European automaker based on his earlier work on car security. Garcia Illera works for a California-based software maker. The two asked that their employers not be identified because their research projects do not involve their employers.

    Mike Davis, a top security researcher with cybersecurity consulting firm IOActive, identified similar threats in U.S. smart meter devices five years ago.     "It was strange. Pretty much none of the utilities deploying smart meters at the time were considering the meters themselves as part of their threat problem," Davis said.

Disclosure of his findings was a wake-up call for U.S. utilities, leading to increased government scrutiny and industry action to better secure the devices against cyberattack.

    Davis said the vulnerabilities described by the Spanish research team sounded feasible given the slow response by utilities and meter makers to overhaul their meters' security.

    "The industry is starting to be much more intelligent," Davis said. "Although for something that is attached to the side of your house, it still has a ways to go."

(Editing by Mark Potter)



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TECHNOLOGY NEWS: EU watchdog targets Amazon's Luxembourg tax deals

By Foo Yun Chee

BRUSSELS (Reuters) - Amazon's tax arrangements with Luxembourg are being investigated by EU regulators, as the online retailer becomes the latest global company to be accused of striking tax-minimising deals with member states that may break bloc rules.

Corporate tax avoidance has come under the spotlight on both sides of the Atlantic in recent years, as perfectly legal deals with authorities help companies save millions of dollars but which critics say is a form of subsidy at ordinary taxpayers' expense.

The European Commission is examining whether Luxembourg broke EU state aid rules by agreeing a deal which allows Amazon to operate almost tax free in Europe.

Amazon is structured so that all online sales in Europe are technically between customers and a Luxembourg company. Despite racking up almost 14 billion euros of sales each year, Amazon's main European subsidiary, Amazon EU Sarl, reports almost no profit.

That is at least partly because it pays hefty fees to its immediate parent Amazon Europe Holding Technologies SCS (AEHT), a tax exempt partnership, in return for using Amazon intellectual property.

The Commision said it was investigating a 2003 deal between Amazon and Luxembourg that underpins this arrangement. The Commission said the agreement could give Amazon an economic advantage over other companies without such rulings.

The U.S. company denied receiving preferential treatment.

"Amazon has received no special tax treatment from Luxembourg, we are subject to the same tax laws as other companies operating here," it said in a statement.

U.S. BATTLE

Luxembourg's finance ministry said there was no wrongdoing.

"Luxembourg is confident that the allegations of state aid in this case are unsubstantiated and that the Commission investigation will conclude that no special tax treatment or advantage has been awarded to Amazon," it said in a statement.

Amazon is already locked in a court battle with the U.S. Internal Revenue Service over the arrangement by which the Luxembourg partnership came to enjoy the rights to sell on Amazon's intellectual property outside the United States.

In court filings, Amazon has denied undercharging AEHT for these rights.

Companies found guilty of breaching EU rules on state aid could be forced to repay what Brussels determines to have been the amount of support given.

Amazon joins fellow U.S. company Apple in the Commission's sights after the watchdog accused Ireland of swerving international tax rules in its tax arrangements with the iPhone maker.

The Commission is also investigating similar deals between coffee chain Starbucks Corp and the Netherlands and Luxembourg tax rulings received by a subsidiary of Italian carmaker Fiat.

For a Reuters story on Amazon's tax structure in Luxembourg, click on http://uk.reuters.com/article/2012/12/06/us-tax-amazon-idUSBRE8B50AR20121206

(Additional reporting by Phil Blenkinsop, and Tom Bergin in London; Editing by David Goodman and Pravin Char)



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TECHNOLOGY NEWS Exclusive: Swisscom reviews $6.3 billion Fastweb sale as Vodafone lurks - sources

By Sophie Sassard, Pamela Barbaglia and Anjuli Davies



LONDON (Reuters) - Telecom operator Swisscom (SCMN.VX) is reviewing the sale of its Italian broadband firm Fastweb, which is worth up to 5 billion euros ($6.28 billion), sources familiar with the situation said.



The Swiss majority state-owned firm, which has already rebuffed several takeover approaches from Vodafone (VOD.L) for Fastweb, is now working with UBS (UBSN.VX), Vodafone's long-term adviser, to facilitate a deal, said the sources who could not be named because the matter is private.



Swisscom, Fastweb, Vodafone declined to comment; UBS was not immediately available for comment.





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TECHNOLOGY NEWS: 'Hairgate': iPhone hit by new social media storm

 

By Eric Auchard



FRANKFURT (Reuters) - First there was bendgate... now brace yourself for hairgate.



Fresh from the online uproar over whether the shiny new iPhone 6 bends when carried around in pockets, Apple has been hit by a new complaint - that the handset traps users' hair or beards when they make calls.



It is difficult to gauge whether there is any real issue, but Twitter users have made #hairgate a rising social media trend, leading major news outlets to pounce on the story.



"The seam on my iPhone 6 where the aluminum meets the glass is definitely catching my hair and pulling it out," one user tweeted.



Bearded iPhone users have jumped on the bandwagon complaining that their facial hair gets yanked during calls, leading to spats over whether to treat #beardgate as a separate trend, or simply as a subset of #hairgate.



Apple was not immediately available to comment.



Jokers are having a field day, with the Twitter account of the Atlanta International Fashion Week speculating that it may be an elaborate plot against hipsters for whom facial hair has become de rigeur. Another user tweeted: "Congrats, Apple, for finally getting hipsters to shave."



For some it is a heaven-sent marketing opportunity; Gillette Co. [PGGIL.UL] was quick to tweet: "Your phone may be smarter than ever, but leave the shaving to the experts."



However, many iPhone 6 users were left to wonder what all the fuss was about.



"I have iPhone 6. Doesn't bend and doesn't snag hair. Who thinks up these things? Apple haters? Competitors?" tweeted Dr. John Wooten, a Virginia-based technical consultant.



(Editing by Pravin Char)

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TECHNOLOGY NEWS: Samsung seeks Hong Kong arbitration after Microsoft lawsuit

By Nate Raymond

NEW YORK (Reuters) - Samsung Electronics Co Ltd initiated an arbitration proceeding in Hong Kong against Microsoft Corp on Tuesday, amid ongoing U.S. litigation over smartphone patent royalties.

The arbitration was disclosed in a court filing as part of a federal lawsuit Microsoft filed in August in New York accusing Samsung of refusing to make royalty payments to Microsoft after the software company announced its intention to acquire Nokia's handset business.

Samsung said it filed the request for arbitration with the Hong Kong office of the International Court of Arbitration of the International Chamber of Commerce. The filing did not indicate why the arbitration is taking place in Hong Kong.

The new case marked a counter-offensive by Samsung against Microsoft's claims in New York and could complicate the New York lawsuit.

The arbitration was commenced under the terms of a business collaboration agreement "to resolve a dispute concerning the calculation of success credits under that agreement," Samsung said.

Jennifer Crider, a spokeswoman for Microsoft, said the companies' contract provided that the "appropriate venue to interpret the business collaboration agreement is New York."

"We still believe that to be true," she added.

A representative for Samsung did not respond to a request for comment.

The arbitration came just days after Microsoft filed an amended complaint in its New York lawsuit asking the court to rule that it did not breach a business collaboration agreement with Samsung.

Microsoft in the complaint also sought an order requiring Samsung to pay $6.9 million interest on more than $1 billion in royalty payments which it delayed in protest of the Nokia deal.

Samsung made royalty payments on time to Microsoft during the first fiscal year after they signed their 2011 agreement, the lawsuit said.

But after Microsoft announced the Nokia deal in September 2013, Samsung initially refused to make another payment, arguing the purchase breached its licensing agreement with Microsoft. Samsung eventually paid late without adding interest, Microsoft said.

Microsoft has successfully argued that Google Inc's Android mobile system uses some of its technology, and as a result most hardware makers, including Samsung, have agreed to pay patent royalties on Android handsets.

Motorola is one of the main holdouts, and that company has been in litigation against Microsoft since 2010.

The lawsuit in U.S. District Court, Southern District of New York is Microsoft Corp vs. Samsung Electronics Co Ltd, 14-6039.

(Editing by Chizu Nomiyama and Matthew Lewis)



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TOP NEWS Wal-Mart to stop healthcare benefits for some part-time workers

(Reuters) - Wal-Mart Stores Inc, the biggest private sector employer in the United States, said on Tuesday it would no longer provide health benefits to some of its U.S. part-time workers due to ballooning healthcare costs.



The company it would stop health benefits for part-time employees who work less than 30 hours a week. The move is expected to impact about 2 percent of the company's workforce, Wal-Mart said in a blog post.



"Like every company, Wal-Mart continues to face rising health care costs," Sally Welborn, the company's senior vice president of global benefits wrote in the post.



"This year, the expenses were significant and led us to make some tough decisions as we begin our annual enrollment," she said.



Wal-Mart cut its full-year profit forecast in August, citing higher employee benefit costs, among other things.



The company said then that it expected to spend $500 million on U.S. healthcare this year, up from $330 million estimated in February, as enrollments and medical costs rise.



On Tuesday, Wal-Mart said it would increase premiums for all of its U.S. employees in 2015. Premiums will increase by $3.50, to $21.90 per pay period for the most popular and lowest-cost employee-only plan, Wal-Mart said.



The company said it was changing some eligibility terms for part-time workers working more than 30 hours a week. It did not provide details on what those changes would be.



Wal-Mart has nearly 2.2 million worldwide, including 1.3 million in the United States.



The company's shares were little changed at $77.40 in late morning trading on the New York Stock Exchange.



(Reporting by Siddharth Cavale in Bangalore; Editing by Ted Kerr)





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TOP NEWS Hong Kong protests at crossroads as traffic, frustration pile up

By Donny Kwok and John Ruwitch

HONG KONG (Reuters) - Hong Kong's dwindling pro-democracy protesters relaxed blockades of key places on Tuesday, allowing some business supplies in and out, although traffic was still largely snarled and talks with the government offered little hope of a quick solution.

Hundreds of protesters in the second week of their campaign for greater democracy were camped out on the road leading into Hong Kong's main government and business districts, the last holdouts after days of rallies that attracted tens of thousands at their peak.

The student-led protesters began lifting their controls of government offices and retail areas on Monday as preliminary, behind-the-scenes talks meant to lead to formal negotiations showed modest signs of progress.

"Now we just have to wait and see about the meetings," said Ronald Chan, a recent university graduate who was one of several protesters manning a barricade in the Central business district, but allowing delivery vans and garbage trucks in and out.

He said several passersby had thanked them for allowing deliveries and he estimated that more than half supported them.

"We know we have caused some inconvenience but we have our reasons," he said. "We hope that other people understand."

The 'Occupy Central' protests, an idea conceived over a year ago referring to the Central business district, have presented Beijing with one of its biggest political challenges since it crushed pro-democracy demonstrations in and around Tiananmen Square in the Chinese capital in 1989.

Beijing fears that calls for democracy in Hong Kong could spread to the mainland, with China already facing separatist unrest in far-flung Tibet and Xinjiang. The Communist Party leadership has dismissed the Hong Kong protests as illegal and has left the city's Beijing-appointed leader, Leung Chun-ying, to find a solution.

Over the past week, the protesters have demanded that Leung quit and that China allow Hong Kong people the right to vote for a leader of their choice in 2017 elections. China wants to select candidates for the election.

After preparatory discussions with student representatives late on Monday, Lau Kong-wah, the government's undersecretary of constitutional and mainland affairs, said both sides had agreed on general principles for formal talks.

"I think today's meeting was successful and progress has been made," he told reporters.

Protest leaders have promised to carry on with their Occupy Central demonstrations until their demands are met.

"It has to end when, and only when, the government promises something, otherwise it is impossible to persuade the people to quit," said Hong Kong Federation of Students leader Alex Chow.

With trunk roads occupied by protesters, alternative routes into the city have quickly become clogged.

Traffic jams on Hong Kong Island and across Victoria Harbour in Kowloon stretched back miles in some places. Passengers trying to get on to underground trains were packed tight as they queued up two levels and spilled out on to the street near the main protest site in the Admiralty district.

SALES SLUMP

Retail authorities have warned that a quick solution is needed before the former British colony suffers a fall in October sales, an important shopping month that encompasses the Golden Week holiday period, for the first time since 2003.

The Hong Kong Retail Management Association said late on Monday sales at chain stores had dropped between 30 and 45 percent from Oct. 1-5 in Admiralty and Central, as well as in the nearby shopping district of Causeway Bay.

Sales fell just as sharply in Kowloon's working class district of Mong Kok, scene of some of the most violent clashes between protesters and police and pro-Beijing groups.

Many Hong Kong businesses were already struggling before the latest demonstrations, a monthly survey by HSBC and Markit Group showed on Tuesday. New business fell for the fifth straight month in September, while firms reduced staffing levels for the sixth consecutive month. The rate of job shedding was the quickest in four months.

The protests have ebbed and flowed over the past week, with people leaving the streets overnight to return later. Police have taken a hands-off approach since Sept. 28, when they fired tear gas and pepper spray at protesters.

The protests have helped wipe close to $50 billion off the value of shares on the Hong Kong stock exchange. The World Bank has said the protests were hurting Hong Kong's economy, although the impact on China was limited.

(Additional reporting by Farah Master, Clare Baldwin, Twinnie Siu, James Pomfret, Clare Jim, Joseph Campbell, Yimou Lee, Diana Chan, Kinling Lo and Venus Wu; Writing by Paul Tait; Editing by Nick Macfie and Robert Birsel)



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TOP NEWS U.S. job openings hit highest level since 2001

By Elvina Nawaguna



WASHINGTON (Reuters) - U.S. job openings rose to their highest level in more than 13 years in August even as hiring fell, the U.S. Department of Labor said.



Job openings were at a seasonally adjusted 4.835 million compared with a downwardly revised 4.605 million in July, the Labor Department said in its monthly Job Openings and Labor Turnover Survey on Tuesday. Job openings are used to measure labor demand.



Federal Reserve policymakers have said they are monitoring the JOLTS report as they consider their next step on monetary policy.



Employers hired a seasonally adjusted 4.640 million people in August, down from 4.934 million in July, the report said. August's hiring was 27 percent higher than in June 2009 when it was at its lowest level since the beginning of the recession.



At 1.8 percent, the quits rate has held steady for seven consecutive months. That rate measures the number of people who leave their jobs voluntarily and is an indication of how confident employees are that they can find a better job elsewhere.



A separate Labor Department report released on Friday showed the labor market picking up as U.S. employers added 248,000 jobs in September, and the national unemployment rate slid to 5.9 percent, its lowest level in six years.



Federal Reserve officials see the labor market as a key indicator to determine when to raise interest rates.



(Reporting by Elvina Nawaguna; Editing by Paul Simao)





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TOP NEWS Turkey says Syrian town about to fall as Islamic State moves in

By Daren Butler and Oliver Holmes

MURSITPINAR Turkey/BEIRUT (Reuters) - Turkey's president said Kobani was "about to fall" after Islamic State fighters advanced into the south west of the Syrian Kurdish town, pressing home a three-week assault that has cost a reported 400 lives.

The prospect that the town on the Turkish border could be captured by the militants has increased pressure on Turkey, with the strongest army in the region, to join an international coalition to fight against Islamic State.

Islamic State wants to take Kobani in order to strengthen its grip on the border area and consolidate the territorial gains it has made in Iraq and Syria in recent months. U.S.-led air strikes have so far failed to prevent its advance on Kobani.

Turkish President Tayyip Erdogan said bombing was not enough to defeat Islamic State and Turkey had made clear that additional measures would be needed.

"The problem of ISIS (Islamic State) ... cannot be solved via air bombardment. Right now ... Kobani is about to fall," he said during a visit to a camp for Syrian refugees.

"We had warned the West. We wanted three things. No-fly zone, a secure zone parallel to that, and the training of moderate Syrian rebels," he said.

He said Turkey would intervene if there were threats to Turkish soldiers guarding a historic site in Syria that Ankara regards as its territory. But so far Turkey has made no move to get involved in the fighting across the border.

From across the Turkish border, two Islamic State flags could be seen flying over the eastern side of Kobani. Two air strikes hit the area and sporadic gunfire could be heard.

The Syrian Observatory for Human Rights monitoring group said it had also documented 412 deaths of civilians and fighters during the three-week battle for Kobani.

On Tuesday, plumes of white smoke rose over eastern and central parts of Kobani and two ambulance crossed the border, travelling from Kobani to the Turkish side.

Islamic State fighters were using heavy weapons and shells to hit Kobani, senior Kurdish official Asya Abdullah told Reuters from inside the town.

"Yesterday there was a violent clash. We have fought hard to keep them out of the town," she said by telephone. "The clashes are not in the whole of Kobani, but in specific areas, on the outskirts and towards the centre."

AIR STRIKES

Islamic State, an al Qaeda offshoot, has ramped up its offensive in recent days against the mainly Kurdish border town, despite being targeted by U.S.-led coalition led air strikes aimed at halting its progress.

"There were clashes overnight. Not heavy but ISIS is going forward from the southwest. They have crossed into Kobani and control some buildings in the city there," said Rami Abdulrahman, head of the Observatory, a group that monitors the conflict with a network on the ground. ISIS is a former name for Islamic State.

"They are about 50 metres inside the southwest of the city," Abdulrahman said.

An estimated 180,000 people have fled into Turkey from the Kobani region following the Islamic State advance. More than 2,000 Syrian Kurds including women and children were evacuated from the town after the latest fighting, a member of the Kurdish Democratic Union Party (PYD) said on Monday.

Before the offensive, Kobani, known as Ayn al-Arab in Arabic, was home to refugees from the civil war which pits rebels against President Bashar al-Assad and has deteriorated into hundreds of localised battles between different factions.

The most powerful of the myriad militias fighting against Assad, Islamic State has boosted its forces with foreign fighters and defectors from other rebel groups. It gained additional heavy weaponry after its fighters swept through northern Iraq in June, seizing arms from the fleeing Iraqi army.

The group released a video showing dozens of men said to be from Ahrar al-Sham, a rival Islamist group which has clashed with it in the past, pledging allegiance to its leader Abu Bakr al-Baghdadi, the SITE monitoring service said on Monday.

Westerners have also fought for the Kurds against Islamic State. A man describing himself as a U.S. citizen and former soldier from Ohio said in a video interview with Reuters inside Syria that he had come to join Kurdish fighters.

Identifying himself as Brian Wilson, he said other Americans had come to Syria to fight Islamic State.

U.S. DEPLOYS APACHES

The United States has been bombing Islamic State positions in Iraq since August and extended the campaign to Syria in September. Arab states have joined both campaigns, while other Western countries are participating in Iraq but not Syria.

Two months into the U.S. campaign, the U.S. military has added a new weapon to its arsenal in Iraq, using Apache helicopters for the first time, U.S. officials said on Monday.

Army Major Curtis Kellogg said Baghdad had asked for helicopter support near Fallujah to push back militants west of Baghdad.

The low-flying helicopters give the U.S. military greater capacity to identify individual targets and provide close air support to Iraqi troops in combat, suggesting close cooperation with forces on the ground. But they also expose U.S. troops to far greater risk from ground fire.

Turkey, a NATO member which shares a 900 kilometre (500 mile) border with Syria and has the most powerful military in the area, has so far refrained from joining the campaign, but the plight of Kobani has increased pressure to act.

Turkey says the scope of the campaign in Syria should be broadened to seek to remove Assad from power. It has sought a no-fly zone in northern Syria, which would require the coalition to take on Assad's air force as well as Islamic State, a move Washington has not agreed to.

PROTESTS IN TURKEY

More than 20 Turkish tanks were parked on a hillside in circular formation around 1 km (half a mile) from the border.

Groups of mainly men travelled towards the border area to witness the clashes and protest against inaction by Turkey to protect Kobani. "Long live the YPG resistance" chanted a group of 20 men on a truck on the road to the town.

Turkish police fired tear gas and water cannon at dozens of demonstrating youths in a field near the border.

The brother of a British aid worker who was beheaded by Islamic State said Britain should put troops on the ground in the Middle East to fight against the militants.

"We need to send ground troops in or forces in to find out where these monsters are and bring them to justice," said Reg Henning, whose 47-year-old brother Alan was killed last week. "The sooner we do it, the sooner the killing stops."

"Go and find them, bring them to justice, bring them over here, let us try them," he was quoted as saying on the BBC website.

Kidnappings are common in Syria's civil war, often used for ransom. Catholic news agency Fides quoted Bishop Georges Abou Khazen, the Apostolic Vicar of Aleppo, as saying a parish priest and around 20 Christians have been kidnapped from a Syrian village near the border with Turkey.

(Additional reporting by Humeyra Pamuk in Istanbul, William Maclean in Dubai, David Alexander and Phil Stewart in Washington and Costas Pitas in London; Editing by Peter Graff and Giles Elgood)



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TECHNOLOGY NEWS: Exclusive Facebook's WhatsApp acquisition now has price tag of $22 billion

By Alexei Oreskovic



SAN FRANCISCO (Reuters) - Facebook Inc (FB.O) closed its acquisition of mobile messaging service WhatsApp on Monday, with the final price tag rising an additional $3 billion to roughly $22 billion because of the increased value of Facebook's stock in recent months.



WhatsApp founder Jan Koum will receive nearly $2 billion in stock, vesting over a four-year period, as an inducement for him to stay with the company, according to a regulatory filing on Monday.



The acquisition, which Facebook announced in February and recently received regulatory approval in Europe, underscores the sky-rocketing values of fast-growing Internet startups, and the willingness of established players such as Facebook and Google Inc (GOOGL.O)(GOOG.O) to pay out for them.



WhatsApp, which has more than 600 million monthly users, is among a new crop of mobile messaging and social media apps that have become increasingly popular among younger users. Snapchat, a privately owned mobile app that allows users to swap photos that can disappear after a few seconds, is raising money at a $10 billion valuation, according to media reports.



Facebook paid $4.59 billion in cash and 178 million shares of its stock for WhatsApp, as well 46 million of grants in restricted stock units for WhatsApp employees that will vest over a four year period. At Monday's opening Facebook share price of $77.17, the deal translates to roughly $21.8 billion.



Koum, who will serve as WhatsApp Chief Executive and become a Facebook director, will earn a $1 annual salary, similar to Facebook Chief Executive Officer Mark Zuckerberg. Koum will receive 24.9 million Facebook restricted stock units, worth roughly $1.9 billion at Monday's share price.



WhatsApp, which has more than 70 employees, will continue to be based at its Mountain View, California, location.



(Reporting by Alexei Oreskovic. Editing by Andre Grenon)





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