Tanks Deployed in Cairo After Night of Deadly Clashes

Asmaa Waguih/Reuters

Supporters of the Muslim Brotherhood walked past tanks outside the Egyptian presidential palace in Cairo on Thursday. More Photos »

CAIRO — An elite Egyptian unit deployed tanks outside the presidential palace on Thursday after a night of battles between Islamists and secular protesters that left five people dead and 450 wounded, spreading chaos in one of Cairo’s wealthiest suburbs and leaving streets littered with debris and burned-out cars.

Angry mobs of Islamists battled the secular protesters with fists, rocks and firebombs in the first major outbreak of violence between political factions here since the revolt against then-President Hosni Mubarak began nearly two years ago.

With at least 12 tanks drawn up near the palace, troops from the presidential guard hammered stakes into the ground to string barbed wire to separate Islamists camping outside the palace and secular protesters chanting slogans urging the guardsmen to choose “between the revolutionaries and the killers.”

The severity of the clashes — and their potential political impact — became apparent when three senior advisers to Mr. Mubarak’s successor, Mohamed Morsi, Egypt’s first freely elected president, resigned during the clashes Wednesday, blaming him for the bloodshed. Mr. Morsi’s prime minister implored both sides to pull back in order to make room for “dialogue.”

Graffiti on the walls of the presidential compound, mocking President Morsi, had been covered by Thursday morning with patches of white paint.The scale of the fighting, in the affluent Heliopolis neighborhood just outside Mr. Morsi’s office in the presidential palace, raised the first doubts about Mr. Morsi’s attempt to hold a referendum on Dec. 15 to approve a draft constitution approved by his Islamist allies over the objections of his secular opposition and the Coptic Christian Church.

Periodic gunshots could be heard at the front lines of the fight, and secular protesters displayed birdshot wounds and pellets. But it could not be determined whether the riot police or Islamists or the opposition had fired the guns.

Many in both camps brandished makeshift clubs, and on the secular side a few carried knives. Thousands joined the battle on each side. The riot police initially tried to fight off or break up the crowds with tear gas, but by mid-evening on Wednesday, the security forces had all but withdrawn. They continued to try to separate the two sides across one boulevard but stayed out of the battle that raged on all around.

In a city square on the Islamist side of the battle lines, a loudspeaker on the top of a moving car blared out exhortations that the fight was about more than politics or Mr. Morsi.

“This is not a fight for an individual, this is not a fight for President Morsi,” the speaker declared. “We are fighting for God’s law, against the secularists and liberals.”

Protesters reportedly set fire to Muslim Brotherhood political offices in the cities of Suez and Ismailia.

Even after two years of periodic battles between protesters and police, Egyptians said they were shocked and alarmed by the spectacle of fellow citizens drawing blood over matters of ideology or political power.

“It is Egyptian fighting Egyptian,” said Mohamed Abu Shukka, 23, who was blocked from entering his apartment building and shaking his head.

Distrust and animosity between Islamists and their secular opponents have mired the outcome of Egypt’s promised transition to democracy in debates about the legitimacy of the new government and its new leaders’ commitment to the rule of law.

The clashes followed two weeks of sporadic violence around the country since Mr. Morsi, a former leader of the Muslim Brotherhood movement, seized temporary powers beyond the review of any court, removing the last check on his authority until ratification of the new constitution.

Mr. Morsi has said he needed the expanded powers to block a conspiracy by corrupt businessmen, Mubarak-appointed judges and opposition leaders to thwart Egypt’s transition to a constitutional democracy. Some opponents, Mr. Morsi’s advisers say, would sacrifice democracy to stop the Islamists from winning elections.

Mai Ayyad contributed reporting.

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Guatemala detains McAfee, to expel him to Belize

GUATEMALA CITY (Reuters) – Guatemalan police arrested U.S. software guru John McAfee on Wednesday for illegally entering the country and said it would seek to expel him to neighboring Belize, which he fled after being sought for questioning over his neighbor’s murder.

McAfee, who had been in hiding for three weeks, crossed into Guatemala with his 20-year-old girlfriend to evade authorities in Belize who wanted to quiz him as “a person of interest” about the killing of fellow American Gregory Faull.

“He entered the country illegally and we are going to seek his expulsion for this crime,” Interior Minister Mauricio Lopez Bonilla said. McAfee was detained by Guatemalan police and a member of Interpol at the upscale Intercontinental hotel in Guatemala City.

One of Silicon Valley’s first entrepreneurs to build an Internet fortune, the 67-year-old made millions of dollars through the antivirus software that now carries his name.

McAfee’s behavior has been increasingly erratic in recent years but there is no international arrest warrant for him. Police in Belize say he is not a prime suspect.

Government spokesman Francisco Cuevas said the entrepreneur would be expelled to Belize and he expected the process to be completed by early Thursday morning.

Fernando Lucero, spokesman for Guatemala’s immigration department, saidimmediate deportation had been ruled out. McAfee’s lawyer Telesforo Guerra was seeking an injunction to have him released and the American said on his blog www.whoismcafee.com that he would not now be returned to the Belize border until a higher judge reviewed the case.

McAfee was taken to a residence belonging to the immigration department guarded by a small group of police.

He had been seeking political asylum in Guatemala, which has been embroiled in a long-running territorial dispute with Belize. .

Residents and neighbors on the Caribbean island of Ambergris Caye, where McAfee has lived in Belize for about four years, say he is eccentric, impulsive, volatile and at times unstable, citing his love of guns and young women.

McAfee has said he believes authorities in Belize will kill him if he turns himself in for questioning. Belize’s prime minister has denied this and called him paranoid and “bonkers.”

“It’s a wild, wild country,” McAfee told Reuters in an interview in his hotel room just hours before his detention.

“Everyone sees one part of Belize,” he said. “They think it’s a wonderful, peaceful, lovely place, blue waters, so McAfee has got to be crazy. Maybe I am crazy. If I were, I wouldn’t know.”

In Belize, he was often seen with armed bodyguards dressed in camouflage, pistols tucked into his belt. McAfee’s slain neighbor had complained about the loud barking of dogs that guarded his exclusive beachside compound.

His run-in with authorities in Belize is a world away from a successful life in the United States, where the former Lockheed systems consultant started McAfee Associates in the late 1980s. McAfee has no relationship now with the company, which was sold to Intel Corp.

NO REGRETS

There was already a case against McAfee in Belize for possession of illegal firearms, and police had previously raided his property on suspicion he was running a lab to make illegal synthetic narcotics.

He says he has not taken drugs since 1983.

“(Before then) I took drugs constantly, 24 hours of the day, I took them for years and years. I was the worst drug abuser on the planet,” McAfee said. “Then I finally went to Alcoholics Anonymous, and that was the end of it.”

But he has no regrets about the path his life has taken, or the loss of the lion’s share of his fortune over the years and says he is happier now that he cares less for material things.

“My life has not declined,” he said. “My life has been on the increase ever since I decided that stuff – houses, money – doesn’t mean much. I had more money than I could spend in million lifetimes. Why would I care?”

McAfee says he has been persecuted by Belize’s ruling party because he wouldn’t pay out some $ 2 million to it.

“The misunderstanding of the severity of their request for money was my big mistake,” McAfee said. “Had I known that, I would maybe have said $ 2 million is way too much. Let’s negotiate something, just don’t rape me for the next seven months. Writing a check would have been a lot easier.”

The party has denied soliciting money from him.

McAfee has been living in the tiny Central American nation for about four years, and wants to return to live there eventually. But he says he is being framed, and denies any involvement in his neighbor’s killing.

“We had one disagreement about a dog. I had disagreements with all my neighbors about my dogs. I had a disagreement with myself about my dogs. They were noisy,” he said.

“Why would I leave behind the body and all the evidence?” he asked. “I’m not stupid.”

(Additional reporting by Gabriel Stargardter; Writing by Simon Gardner; Editing by Philip Barbara, Lisa Shumaker and Patrick Graham)

Tech News Headlines – Yahoo! News

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Frank Ocean, Taylor Swift Collect Grammy Nominations

12/06/2012 at 01:00 AM EST

How FUN!

The Grammys handed out their nominations Wednesday night at a concert in Nashville and there was a decidedly youthful feel: Taylor Swift earned a nod for record of the year and the band FUN joined Frank Ocean with the trifecta of album and record of the year and best new artist.

In the country categories, Blake Shelton is up against Carrie Underwood for best solo performance and Miranda Lambert was nominated for best album.

Here are some of the major nominations. For a complete list go to Grammy.com:

Album of the Year:
El Camino – The Black Keys
Some Nights– FUN.
Babel – Mumford & Sons
Channel Orange – Frank Ocean
Blunderbuss – Jack White

Record of the Year:
Lonely Boy – The Black Keys
Stronger (What Doesn't Kill You) – Kelly Clarkson
We Are Young – FUN. featuring Janelle Monáe
Somebody That I Used To Know – Gotye Featuring Kimbra
Thinkin Bout You – Frank Ocean
We Are Never Ever Getting Back Together – Taylor Swift

Best New Artist:
Alabama Shakes
FUN
Hunter Hayes
The Lumineers
Frank Ocean

Song Of The Year:
"The A Team" – Ed Sheeran, songwriter (Ed Sheeran)
"Adorn" – Miguel Pimentel, songwriter (Miguel)
"Call Me Maybe" – Tavish Crowe, Carly Rae Jepsen & Josh Ramsay, songwriters (Carly Rae Jepsen)
"Stronger (What Doesn't Kill You)" – Jörgen Elofsson, David Gamson, Greg Kurstin & Ali Tamposi, songwriters (Kelly Clarkson)
"We Are Young" – Jack Antonoff, Jeff Bhasker, Andrew Dost & Nate Ruess, songwriters (FUN. featuring Janelle Monáe)

Best Country Solo Performance:
"Home" – Dierks Bentley
"Springsteen" – Eric Church
"Cost Of Livin'" – Ronnie Dunn
"Wanted" – Hunter Hayes
"Over" – Blake Shelton
"Blown Away" – Carrie Underwood

Best Country Album:
Uncaged – Zac Brown Band
Hunter Hayes – Hunter Hayes
Living For A Song: A Tribute To Hank Cochran – Jamey Johnson
Four The Record– Miranda Lambert
The Time Jumpers – The Time Jumpers

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

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Johnson can be reached at https://twitter.com/GeneAPseattle

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Standard Chartered sees $330 million Iran fine, profit rise erodes

HONG KONG/LONDON (Reuters) - Standard Chartered expects to pay $330 million to settle a case with U.S. regulators for breaking sanctions on Iran, the Asian-focused bank said on Thursday, a second such penalty which could almost wipe out its profit growth this year.

Standard Chartered already paid $340 million to New York's Department of Financial Services (DFS) in the third quarter, and the London-based bank said the settlement with federal and other state regulators was expected "very shortly".

The original DFS fine will cut pretax profit growth this year to around 5 percent, from an underlying profit rise of more than 10 percent, the bank said in a trading update - so the additional payment could leave profits near flat on the year.

The DFS, New York's banking regulator, said Standard Chartered had hidden financial transactions with Iran. The bank agreed to pay the civil penalty after its stock dropped due to the allegations and a threat to revoke its license to do business in New York.

The United States has led the drive for sanctions, hoping to halt an Iranian nuclear program which Washington suspects is aimed at producing weapons although Tehran says it is peaceful.

Even slim earnings growth would mean a 10th straight year of record profits, as StanChart has ridden on Asia's rise through much of the last decade, allowing it to continue hiring and increasing earnings when much of the industry is shrinking.

Finance Director Richard Meddings estimated Standard Chartered could have to pay $320-330 million next year under a British bank levy. This is about $65 million more than originally expected, due to finance minister George Osborne's announcement on Wednesday that the levy would be raised.

Standard Chartered expects to pay about $210 million under the tax this year, up from $165 million in 2011, and warned that there has been a "significant and increasing cost of regulation", in particular for liquidity.

The levy has been criticized for being harder on banks that are expanding their balance sheet, even outside Britain. These include Standard Chartered, which has threatened to quit London if the cost of being based in Britain becomes too much.

Despite its regulatory costs, the bank is one of the few still hiring and Meddings told analysts he expected to add more staff this year than the previous guidance of about 1,500.

"We expect it now to be through 2,000 by the end of the year as we continue to hire. A lot of that hiring is in the back office support functions and compliance and risk, but it's also in consumer banking," he told analysts on a call.

Meddings said the bank would add a similar number of jobs next year. "We'd expect to be at around the same level for next year," he told Reuters.

By contrast, most rivals have been cutting, with Citi saying on Wednesday it was cutting 11,000 jobs.

By 5:30 a.m. EDT StanChart's London shares were up 0.9 percent, trailing a 1.1 percent rise in European bank shares.

A LID ON COSTS

A rise in the number of unemployed bankers meant Standard Chartered could keep a lid on costs, with revenue growing faster than costs - a phenomenon known in financial industry jargon as "positive jaws". However, cost growth in its wholesale bank, effectively its investment banking arm, would be higher than income growth due to the DFS fine, it said.

For much of 2010, StanChart was hit by ever-rising costs as an increasing number of banks and brokerages tried to expand in Asia. Since then, various minor players including Samsung Securities and KBW have begun pulling out.

The bank does not release specific numbers in its trading updates, which it keeps for annual results typically in late February. It singled out Malaysia, China and Indonesia as regions where income grew by at least 10 percent.

In Hong Kong, its biggest market, income grew at a high single-digit percentage, the bank said.

StanChart's Hong Kong-listed shares are up 9 percent year-to-date, lagging the 20 percent rise on the Hang Seng Index.

Asset quality remained good, the bank said, with loan impairments within the wholesale bank expected to be below the levels seen in the first half of this year. For the consumer bank, loan impairment is expected to increase by at least 10 percent from the first half.

However, StanChart pointed to India and the Middle East as two markets where it was watchful for asset quality. Slowing growth in some emerging markets has raised concern that StanChart could be hit by a rise in bad loans.

(Editing by Alex Richardson and David Stamp)

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Port-Au-Prince Journal: Campaign in Haiti to Close Orphanages

Ben Depp for The New York Times

An orphanage north of Port-au-Prince that is part of Mission of Hope Haiti.

PORT-AU-PRINCE, Haiti — Orphanages packed with little ones dot the landscape here, some with brightly colored signs outside their gates, others unmarked on back roads. But many of the children are not actually orphans, and a campaign is under way to close as many of the institutions as possible for good.

In the courtyard of one, Chris Savini, a missionary from Illinois, rocked a 10-month-old boy to sleep. The infant’s mother had died, and his father, Luxe Étienne, overwhelmed with eight children, turned over six of them to orphanages.

“He knew it was his son’s best shot,” said Mr. Savini, who arranged with the father for an American couple to adopt the baby from Mission Une Seule Famille en Jésus Christ, on the outskirts of Port-au-Prince.

Such arrangements have long been commonplace here. After the earthquake in 2010, it became clear that most children in the hundreds of orphanages in Haiti have living parents, as 10 Americans were jailed for taking custody of 33 children they said they believed to be orphans and trying to cross into the Dominican Republic with them. All the children were subsequently found to have parents living in Haiti.

Since then, a consensus has developed among government officials, children’s advocates, religious leaders and others that a new approach is required, starting with a reduction in the number of orphanages. But the transition is not easy, and some question whether the country is ready for it.

Of the roughly 30,000 children in Haitian institutions and the hundreds adopted by foreigners each year, the Haitian government estimates that 80 percent have at least one living parent.

The decision by Haitian parents to turn their children over to orphanages is motivated by dire poverty. Also, large families are common, and many parents unable to afford school fees believe that orphanages at least offer basic schooling and food.

On a recent visit to the orphanage caring for three of his children, Mr. Étienne said he struggled to make a living as a contractor and could barely support his two children who remained at home. Their private school fees, the equivalent of $237 per year, add to his burden.

“If I had enough income, I would have taken them back home,” he said, holding his cooing son.

Under rules put in place last month to comply with the Hague Convention on Intercountry Adoptions, the Haitian government intends to play a larger role in regulating adoptions. In cases involving children who are not orphans, the government intends to meet with the birth parents at the beginning of the process to obtain their consent and offer assistance like job training if they want their children to stay with them.

“We don’t want poverty to be the only motivation,” said Arielle Jeanty Villedrouin, who took charge of Haiti’s child welfare services last year. “For many cases in the past, that was the only motivation.”

To reduce the number of orphanages, the government has also begun inspecting institutions here in the capital and in the far-flung provinces and trying to close those in the worst shape and reunite as many children as possible with their families. A vast majority of the orphanages are unauthorized, and only 112 are accredited. Before this year, the government did not even have a count of the institutions.

Mission Une Seule Famille en Jésus Christ, where Mr. Étienne’s son awaits adoption, opened in 2005, but its director, Joseph Kesnel, said he picked up an application for accreditation only in October. Inspectors had not yet visited the orphanage, but there were troubling signs, including children complaining of not having enough to eat, a smell of urine and a baby without a diaper in the dirt courtyard.

With a team of 160 inspectors, financed in part by Unicef, the government has reviewed 725 orphanages and has found 72 to be of such poor quality that they should close. But actually shuttering them is another matter. Since September 2011, only 26 have been closed.

When one orphanage, Soeurs Rédemptrices de Nazareth, in the hills outside Port-au-Prince, was closed in June, 3 of the 64 children had to be hospitalized because of malnourishment, officials said, and others showed signs of rat bites and scabies. The director, Sister Dona Bélizaire, has been jailed on suspicion of child trafficking. Her backers have started an Internet campaign asserting that she is being held without cause.

The closings, though, have halted, because there are so few authorized orphanages that can take in children while the government tracks down their families, said Mrs. Villedrouin, the child welfare official.

Emily Brennan reported with the help of a grant from the International Reporting Project.

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The Voice Reveals Top Four Contestants

TV Watch

By Julia Haskins

12/04/2012 at 09:35 PM EST

The Voice"'s top six contestants were under double pressure Monday night when they had to sing two songs each. But there was even more stress at Tuesday's elimination.

"It went as well as it could have gone," Team Blake's Terry McDermott said on Monday of his performances of "I Want to Know What Love Is" and Rod Stewart's "Stay with Me." "There was a lot of pressure stripping a song down, but it worked to my advantage."

"I felt good," said Team Cee Lo's Trevin Hunte, who performed "Walking on Sunshine" and Jennifer Hudson's "And I Am Telling You (I'm Not Going)." "I'm confident. I feel like I've really grown. I'm definitely happy with my performance. I just want to see how America votes."

His chance came Tuesday when he and McDermott stood alongside competitors Nicholas David (Team Cee Lo), Cassadee Pope (Team Blake), Melanie Martinez and Amanda Brown (both Team Adam) to hear host Carson Daly reveal the voting results. Keep reading to find out ...

America saved McDermott, Hunte and Pope, but Martinez said goodbye to the competition for good. "I love all of you who have supported me," she said to her fans. "I'm just so grateful for you."

Brown also met the same fate, making David the final member of the top four.

The semi-final show airs Monday at 8:00 p.m. on NBC.

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Study: Drug coverage to vary under health law

WASHINGTON (AP) — A new study says basic prescription drug coverage could vary dramatically from state to state under President Barack Obama's health care overhaul.

That's because states get to set benefits for private health plans that will be offered starting in 2014 through new insurance exchanges.

The study out Tuesday from the market analysis firm Avalere Health found that some states will require coverage of virtually all FDA-approved drugs, while others will only require coverage of about half of medications.

Consumers will still have access to essential medications, but some may not have as much choice.

Connecticut, Virginia and Arizona will be among the states with the most generous coverage, while California, Minnesota and North Carolina will be among states with the most limited.

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Online:

Avalere Health: http://tinyurl.com/d3b3hfv

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Stock futures signal gains at open

PARIS (Reuters) - Stocks were indicated to open higher on Wednesday, with futures for the S&P 500 up 0.35 percent, Dow Jones up 0.43 percent and Nasdaq 100 up 0.41 percent at 4:55 a.m. EDT.

* European shares resumed a recent sharp rally on Wednesday after comments from China's new leader boosted global growth expectations.

* Chinese Communist Party chief Xi Jinping said the country will maintain its fine-tuning of economic policies in 2013 to ensure stable economic growth, sparking a sharp rally in Chinese shares with the Shanghai Composite Index <.ssec> surging 2.9 percent.

* Xi listed tax reform, urbanization and allowing the market to play a bigger role in setting resource prices as among his key priorities.

* On the domestic front, investors awaited ADP's November employment report, due at 8:15 a.m. EDT. Economists in a Reuters survey expect 125,000 jobs were created versus 158,000 in October. Other data on Wednesday include factory orders and ISM's November non-manufacturing index, both due at 11 a.m. EDT.

* Repsol filed a U.S. lawsuit to block Chevron Corp's deal with Argentina's YPF , ramping up the Spanish oil company's legal response to the loss of its assets in Argentina.

* Programmable chipmaker Altera Corp trimmed its fourth-quarter revenue expectation citing fewer orders for its older products, sending its shares down 2 percent after the bell.

* Aerovironment Inc posted a better-than-expected quarterly profit as its unmanned aircraft unit sold more fixed-price products, sending its shares up 9 percent after the bell.

* Pandora Media Inc

lowered its fourth-quarter guidance, blaming a pull-back by advertisers on concerns about the U.S. budget, but analysts suggested it was due more to increasing competition.

* The U.S. Senate on Tuesday voted 98-0 to approve a wide-ranging defense bill that authorizes $631.4 billion in funding for the U.S. military, the war in Afghanistan and nuclear weapons.

* Walt Disney gave a much needed boost to Netflix , becoming the first major Hollywood studio to use the video service to bypass premium channels like HBO that traditionally controlled the delivery of movies to TV subscribers.

* The U.S. securities regulator is investigating a $10 million stock sale in March by Steven Fishman, chief executive of close-out retailer Big Lots Inc who announced his retirement on Tuesday, the Wall Street Journal reported, citing a person familiar with the inquiry.

* U.S. stocks finished slightly lower in a quiet session on Tuesday as the back-and-forth wrangling over the "fiscal cliff" gave investors little reason to act.

* The Dow Jones industrial average <.dji> fell 13.82 points, or 0.11 percent, to 12,951.78 at the close. The Standard & Poor's 500 Index <.spx> dipped 2.41 points, or 0.17 percent, to 1,407.05. The Nasdaq Composite Index <.ixic> shed 5.51 points, or 0.18 percent, to close at 2,996.69.

(Reporting by Blaise Robinson; Editing by John Stonestreet)

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Pakistan’s Hazara Shiites Under Siege

Declan Walsh/The New York Times

Many members of the Hazara Shiite community killed by Sunni extremists are buried in a graveyard in Quetta, Pakistan.

QUETTA, Pakistan — Calligraphers linger at the gates of an ancient graveyard in this brooding city in western Pakistan, charged with a macabre and increasingly in-demand task: inscribing the tombstones of the latest victims of the sectarian death squads that openly roam these streets.

For at least a year now, Sunni extremist gunmen have been methodically attacking members of the Hazara community, a Persian-speaking Shiite minority that emigrated here from Afghanistan more than a century ago. The killers strike with chilling abandon, apparently fearless of the law: shop owners are gunned down at their counters, students as they play cricket, pilgrims dragged from buses and executed on the roadside.

The latest victim, a mechanic named Hussain Ali, was killed Wednesday, shot inside his workshop. He joined the list of more than 100 Hazaras who have been killed this year, many in broad daylight. As often as not, the gunmen do not even bother to cover their faces.

The bloodshed is part of a wider surge in sectarian violence across Pakistan in which at least 375 Shiites have died this year — the worst toll since the 1990s, human rights workers say. But as their graveyard fills, Hazaras say the mystery lies not in the identity of their attackers, who are well known, but in a simpler question: why the Pakistani state cannot — or will not — protect them.

“After every killing, there are no arrests,” said Muzaffar Ali Changezi, a retired Hazara engineer. “So if the government is not supporting these killers, it must be at least protecting them. That’s the only way to explain how they operate so openly.”

The government, already battling Taliban insurgents, insists it is taking the threat seriously. During the recent Mourning of Muhurram, when Shiites parade through the streets over 10 days, the Interior Ministry imposed stringent security measures such as blocking cellphone signals for up to 12 hours — to try to prevent remote bomb detonations — and banning doubled-up motorcycle riding. Even so, Sunni bombers struck at least five times, killing at least 50 Shiites and wounding several hundred. The Pakistani Taliban claimed responsibility for the biggest attacks, highlighting an emerging link between that group and traditional sectarian militants that has worried many.

Yet the unchecked killings have also raised wider questions about Pakistani society: about the spread of a cancerous sectarian ideology in a public that even just a decade ago seemed more tolerant, and about what might be spurring the growing audacity of the killers, some of whom are believed to have links to the country’s security services.

The murders in Quetta, for instance, involve remarkably little mystery. By wide consensus, the gunmen are based in Mastung, a dusty agricultural village 18 miles to the south that is the bustling local hub of Lashkar-e-Jhangvi, the country’s most notorious sectarian militant group.

Like so many Pakistani groups that combine guns with zealotry, Lashkar-e-Jhangvi thrives in a wink-and-nod netherworld: it is officially banned, but its leader, Malik Ishaq, was released from jail last year amid showers of rose petals thrown by supporters. Now Mr. Malik lives openly in southern Punjab Province, protected by armed men who loiter outside his door, allowing him to deliver hate-laced statements to visitors. Shiites are “the greatest infidels on earth,” he told a Reuters reporter last month.

In Quetta, his followers are similarly unfettered. In targeting the Hazara — who, with their distinctive Central Asian features, are easy to pick out — Lashkar-e-Jhangvi militants block busy highways as they search vehicles for Hazaras and daub walls with hate slogans. “The face is the target,” said Major Nadir Ali, a senior Hazara leader and retired army officer. “They see the face, then they shoot.”

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