Dollar climbs on positive US jobs data

WASHINGTON: The dollar headed higher against the euro Friday, helped by surprise numbers in the November US jobs report, though the details still painted a less buoyant picture than the headline numbers.

At 2200 GMT, the euro was trading at $1.2928, compared to $1.2969 Thursday.

The US Labour Department reported the unemployment rate fell to 7.7 per cent in November, instead of a rise to 8.0 per cent as most economists had expected.

The economy spun out a net 146,000 new jobs, also beating estimates.

But the picture wasn't all good: the job creation numbers for the previous two months were lowered, and the data also showed that more people dropped out of the jobs market altogether than got new jobs.

"At the current pace, we would not see the economy returning to full employment for another decade," said Dean Baker of the Centre for Economic and Policy Research.

The eurozone currency also continued to show the impact of Thursday's ECB shock economic forecast, which slashed growth expectations with a prediction of more contraction in 2013.

ECB officials hinted at a possible future rate cut given the continued contraction in the region's economy.

The Japanese yen was mixed, gaining to 106.64 yen to the euro but falling to 82.46 to the greenback.

The dollar rose to 0.9343 Swiss francs from 0.9325 francs; the British pound slipped to $1.6039 from $1.6050.

- AFP/fa

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

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.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, 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."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"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."

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."

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.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

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

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Baby Gabriel's Mother Sentenced to Prison

Elizabeth Johnson -- who at one point admitted to killing her son, the missing infant Gabriel Johnson, before saying she gave him away -- told a judge she "deserved the maximum" sentence, before receiving a prison term of 5.25 years, half of the max.

In October, Johnson, 26, was found guilty of custodial interference and unlawful imprisonment stemming from the disappearance of her 8-month-old son, last seen on Dec. 24, 2009. The baby's whereabouts remain unknown.

"I am brokenhearted over my son still being missing," said Johnson, wearing a striped prison jumpsuit. "I'm at a loss because I do deserve the max. What I have done is unconscionable. I would convict myself.

"I do deserve the maximum, I do," she said through tears. "[But it] wasn't how [the prosecution] made it out to be. It wasn't like that. That's all I have to say."

Judge Paul McMurdie said he wished he could design a sentence that would compel Johnson to disclose Gabriel's whereabouts, but could only "sentence her for the offenses [for which] she's been convicted."

Johnson, 26, will serve 5.25 years in an Arizona state prison, followed by four years of probation.

At today's sentencing hearing, prosecutor Angela Andrews called Johnson' actions "despicable," but said the state would drop its request to see Johnson serve out a maximum sentence if she would tell authorities where her son could be found.

Johnson, who has been in jail for the past three years, faced a maximum of 9.5 years in prison on the two convictions. In October, the jury did not reach a verdict on a third charge of kidnapping.

Before Gabriel's disappearance, Johnson had been embroiled in a custody battle with the baby's biological father, Logan McQueary. The couple differed on putting their infant son up for adoption. Johnson had wanted to, McQueary did not.

"I think Elizabeth should be held accountable for her actions, for making my son disappear," Johnson told the court. "She should stay in jail until Gabriel is found or be given the maximum sentence as possible."

While she was fighting with McQueary over custody of their son, Johnson left Tempe, Ariz., with Gabriel and traveled to San Antonio, Texas, on Dec. 18, 2009. Johnson failed to bring Gabriel back to visit with McQueary two days later, violating a court custody order.

Gabriel was last seen with his mother on Dec. 26, 2009. The following day, Johnson sent text messages to McQueary saying she had killed him. Johnson was recorded telling McQueary that she suffocated their son with a towel until he turned blue. She said she then put his body in a diaper bag and put the bag in the trash.

Later, Johnson told authorities she gave Gabriel to a couple she met in a park in San Antonio, though she has never named who she gave the child to.

ABC News' Alexis Shaw contributed to this report.

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Egyptian opposition to shun Mursi's national dialogue

CAIRO (Reuters) - Prime Minister Mohamed Mursi was expected to press ahead on Saturday with talks on ways to end Egypt's worst crisis since he took office even though the country's main opposition leaders have vowed to stay away.

Cairo and other cities have been rocked by violent protests since November 22, when Mursi promulgated a decree awarding himself sweeping powers that put him above the law.

The upheaval in the most populous Arab nation, following the fall of Hosni Mubarak last year, worries the West, in particular the United States, which has given it billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

Mursi's deputy raised the possibility that a referendum set for December 15 on a new constitution opposed by liberals might be delayed. But the concession only goes part-way towards meeting the demands of the opposition, who also want Mursi to scrap the decree awarding himself wide powers.

On Friday, large crowds of protesters surged around the presidential palace, breaking through barbed wire barricades and climbing on tanks guarding the seat of Egypt's first freely elected president, who took office in June.

As the night wore on, tens of thousands of opposition supporters were still at the palace, waving flags and urging Mursi to "Leave, leave".

"AS LONG AS IT TAKES"

"We will stay here for as long as it takes and will continue to organize protests elsewhere until President Mursi cancels his constitutional decree and postpones the referendum," said Ahmed Essam, 28, a computer engineer and a member of the liberal Dostour party.

Vice President Mahmoud Mekky issued a statement saying the president was prepared to postpone the referendum if that could be done without legal challenge.

Mursi's planned dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. "Everything will be on the table," a presidential source said.

Mursi could be joined by some senior judiciary figures and politicians such as Ayman Nour, one of the candidates in Mubarak's only multi-candidate presidential race, in 2005, in which he was unsurprisingly trounced.

The opposition has demanded that Mursi rescind the decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.

EXPAT VOTE DELAYED

The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting within Egypt.

Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was intended to seem like a concession but would not change the opposition's stance.

The opposition organized marches converging on the palace which Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.

Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo's al-Azhar mosque for six Mursi partisans who were among the dead.

"With our blood and souls, we sacrifice to Islam," they chanted.

A group led by leftist opposition leader Hamdeen Sabahy has called for an open-ended protest at the palace.

Some pro-Mursi demonstrators gathered in a mosque not far from the palace, but said they would not march towards the palace to avoid a repeat of the violence that took place on Wednesday night.

In a speech late on Thursday, Mursi had refused to retract his decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.

The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front's coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as "arm-twisting and imposition of a fait accompli".

ElBaradei said that if Mursi were to scrap the decree with which he awarded himself extra powers and postpone the referendum "he will unite the national forces".

Murad Ali, spokesman for the Muslim Brotherhood's Freedom and Justice Party, said opposition reactions were sad: "What exit to this crisis do they have other than dialogue?" he asked.

(Additional reporting by Omar Fahmy; Writing by Giles Elgood; Editing by Michael Roddy)

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ECB forecast, rate hints send euro lower

NEW YORK: The euro only barely rebounded against the dollar in late trade Thursday, after plunging on the European Central Bank's sharp cut in its eurozone growth forecast for next year.

The euro lost more than one cent after the ECB forecast that the euro area economy will shrink by 0.3 percent in 2013, instead of growing by 0.5 percent as previously estimated.

Also pressing it lower were hints from the ECB that it might be moving toward cutting its benchmark rate, even as it held firm on Thursday.

"The ECB appears to have the door open for an interest rate cut, and we expect it to step through early in 2013," said Howard Archer at IHS Global Insight.

At 2200 GMT, the euro was at $1.2969, compared to $1.3064 late Wednesday. It hit a low of $1.2951 during the day.

There was nothing otherwise to budge the dollar, with trade mostly on hold for Friday's US jobs data for November, expected to be down due to Hurricane Sandy's impact on the economy of the northeast corridor.

If anything, the data will support expectations that the Federal Reserve will further extend its bond purchase stimulus program when it meets next week.

The yen picked up slightly, 10 days before national elections in Japan. It gained to 106.85 yen to the euro from 107.71, and 82.37 yen to the dollar from 82.42.

The dollar rose to 0.9325 Swiss francs, and the British pound slipped to $1.6050.

-AFP/ac

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Kashmir clashes spike hotel bookings in HP

SHIMLA: Fallout of recent sectarian clashes in Srinagar has spiked year-ender booking at hotels across the state, even as the tourism department has planned out Masroor cultural festival in Kangra to coincide with the festive week.

Talking to newspersons, Sudripta Roy, chief secretary said, "There has been a sudden increase in tourist bookings for the last week of this year and the first week of next year. We are almost booked to near capacity."

"The government was in touch with civil aviation ministry for getting Air India to operate flights to Dharamshala, Kullu and Shimla so that high end tourists who would like to be part of the New Year celebrations at our hill resorts get to avail the service," he said. With grounding of Kingfisher Airlines, the only operator, who was plying flights to these destinations, the three airports have been lying idle for months.

To diversify tourism from crowded destinations like Shimla and Manali, the concept of home stays under the promotional campaign of 'Har Gaon Ki Kahani' has caught the fancy of tourists, said Roy. The scheme intends to adopt another village in each district, besides the 12 already taken up for developing basic infrastructure in the adopted villages. By Feburary 13 next year ,12 rural circuits to these villages would be operational.

Holding of the Masroor cultural and folk festival is part of this campaign and the second such festival would be held in the last of this month, he added.

The chief secretary said that in the absence of any rail network, air connectivity; road transport was facing infrastructural constraints and funds had been marked for developing 75 parking lots and 40 public conveniences.

Of the Rs 86 Cr provided by the central government for improvement of tourism infrastructure, Rs 52 crore had been spent and the remaining would be utilized by March 13.

In addition the central government had provided an additional Rs 34 crore for developing a mega circuit, he said.

Till October, tourism has grown by 10.26 percent over last year, said Arun Sharma, commissioner tourism. Against 14.6 million tourists, 15 million in the corresponding period had already visited the state, he added.

The tourism department is executing works worth Rs 52 crore and has also spent Rs 2.5 crore on eco-tourism.

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Bodies Believed to Be Missing Iowa Cousins

Authorities believe two bodies found by hunters in Iowa this week are Lyric Cook and Elizabeth Collins, two young cousins who vanished in July.

"At this time, law enforcement is confident, based upon evidence at the scene and preliminary investigation, that the bodies are those of Lyric Cook and Elizabeth Collins," Capt. Rick Abben, chief deputy of the Black Hawk County Sheriff's Office, said at a news conference in Evansdale, Iowa.

Asked why authorities were so confident that the bodies were those of the two girls, Abben replied, "We have no one else that's missing in this area. We have two bodies that were found. They were smaller in stature so we have nothing else to think, at this time."

Abben noted that the state's medical examiner's office in Ankeny, Iowa, had yet to complete the positive identification of the girls.

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Asked if the kidnapping investigation was now turning into a homicide investigation, Abben replied, "We are looking that way at this time."

Lyric, 11, and Elizabeth, 9, went missing on July 13 on a bike ride in the small town of Evansdale, Iowa, near Waterloo, Iowa. After hunters found two bodies in a wooded area in Seven Bridges Conservation Area on Wednesday afternoon, the families of Lyric and Elizabeth were notified and the bodies were sent to Ankeny for positive identification.

The families expressed "their gratitude to the community for their ongoing support," according to a statement released by authorities. Elizabeth's mother, Heather Collins, later posted a message on her Facebook page.

"We knew when our girls went missing that [there] would be two outcomes," she wrote. "Unfortunately this is not the one that we wanted but we know our girls [are] dancing with our savior. We know that he will continue to be with us giving us strength and comfort always."

On Wednesday night, residents of Evansdale, Iowa, gathered at Meyers Lake -- where the girls' bicycles and a purse were found -- for a candlelight vigil.

"It's hard to believe," said Lorissa Wilson, who attended the vigil. "I didn't want it to happen to the girls. They're too young to pass away, I believe."

Mary Carroll, who knew Elizabeth, said, "You don't expect it for somebody so sweet and innocent."

Another participant at the vigil, Holly Timmerman, noted that this was "not the outcome anybody wanted at all."

The Seven Bridges Conservation Area will remain closed until Monday, Abben said.

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Egypt demonstrators reject Mursi call for dialogue

CAIRO (Reuters) - Demonstrators rejected a call from Egypt's Islamist President Mohamed Mursi for a national dialogue after deadly clashes around his palace, demanding the "downfall of the regime" - the chant that brought down Hosni Mubarak.

Mursi said in a televised speech late on Thursday that plans were on track for a referendum on a new constitution on December 15 despite clashes that killed seven people. He proposed a meeting on Saturday with political leaders, "revolutionary youth" and legal figures to discuss the way forward after that.

But a leading activist group rejected the offer, and fresh demonstrations were called for Friday.

The "April 6" movement, which played a prominent role in igniting the revolt against Mubarak said on its Facebook page that Friday's protests would deliver a "red card" to Mursi.

Egypt has been plunged into turmoil since Mursi issued a decree on November 22 awarding himself wide powers and shielding his decisions from judicial review.

His Islamist supporters say the decree was necessary to prevent Mubarak-era judges from interfering with reforms. A constitution drawn up by a body dominated by Islamists is due to be put to a referendum next week.

The opposition has demanded that Mursi scrap his decree, postpone the referendum and redraft the constitution.

In his address, Mursi said: "I call for a full, productive dialogue with all figures and heads of parties, revolutionary youth and senior legal figures to meet this Saturday."

Several thousand opposition protesters near the palace waved their shoes in derision after his speech and shouted "Killer, killer" and "We won't go, he will go" - another of the slogans used against Mubarak in last year's revolt.

The Cairo headquarters of the Muslim Brotherhood, the group that propelled Mursi to victory in a June election, was set ablaze. Other offices of its political party were attacked.

TENTATIVE CONCESSION

The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, had urged dialogue.

Mursi said his entire decree would lapse after the constitutional referendum, regardless of its result.

He said a new constituent assembly would be formed to redraft the constitution if Egyptians rejected the one written in the past six months.

The Republican Guard, an elite unit whose duties include protecting the presidential palace, restored peace on Thursday after a night of violence outside the palace, ordering rival demonstrators to leave by mid-afternoon.

Mursi supporters withdrew, but opposition protesters remained, kept away by a barbed wire barricade guarded by tanks. By evening their numbers had swelled to several thousand.

Thousands of supporters and opponents of Mursi had fought well into Thursday's early hours, using rocks, petrol bombs and guns. Officials said 350 were wounded in the violence. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

Opposition groups have called for protests after Friday prayers aimed at "the downfall of the militia regime", a dig at what they see as the Brotherhood's organized street muscle.

A communique from a leftist group urged protesters to gather at mosques and squares across Egypt, and to stage marches in Cairo and its sister city Giza, converging on the presidential palace. "Egyptian blood is a red line," the communique said.

Hardline Islamist Salafis also summoned their supporters to protest against what they consider biased coverage of the crisis by some private Egyptian satellite television channels.

Since Mursi issued his decree, six of his advisers have resigned. Essam al-Amir, the director of state television, quit on Thursday, as did a Christian official at the presidency.

The Brotherhood's supreme guide, Mohamed Badie, called for unity, saying divisions "only serve the nation's enemies".

The Islamists, who have won presidential and parliamentary elections since Mubarak was overthrown, are confident they can win the referendum and the parliamentary election to follow.

As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.

Egypt's pound hit an eight-year low on Thursday, reversing gains made on hopes that a $4.8 billion IMF loan would stabilize the economy. The stock market fell 4.6 percent.

(Additional reporting by Edmund Blair and Marwa Awad; Writing by Alistair Lyon and Peter Graff; Editing by Louise Ireland)

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Australian station plugs "biggest royal prank ever"

SYDNEY: Sydney radio station 2Day FM Thursday hailed "the biggest royal prank ever" after two of its presenters got through to a nurse treating Prince William's pregnant wife Kate at a London hospital.

The embarrassing hoax Tuesday made worldwide headlines and was condemned by the private King Edward VII's Hospital, which said it took "patient confidentiality extremely seriously".

Presenters Mel Greig and Michael Christian, who posed as the Queen and Prince Charles, apologised after an uproar in Britain.

"We were very surprised that our call was put through. We thought we'd be hung up on as soon as they heard our terrible accents," they said in a statement.

"We're very sorry if we've caused any issues and we're glad to hear that Kate is doing well."

But the station was also making the most of the publicity, headlining a story on its website "Biggest Royal Prank Ever."

"With some of the worst English accents in the history of radio, the Summer Hot30's MC and Mel managed to convince the staff at Duchess, Kate Middleton's hospital in London that they were the Queen and Prince Charles," it said.

"In a prank that they never even imagined would work, MC and Mel called the private King Edward VII Hospital where Kate is staying, put on their best (yikes!) Queen and Prince Charles accents and were asked to be put through to Kate's room.

"To MC and Mel's absolute shock they were put straight through to a nurse on Kate's ward."

The pair were connected to a nurse treating Kate and given an update on her condition, including that she had not experienced any recent "retching".

In the background of the call, in which the pair affected upper-crust accents, another member of the radio show can be heard barking in an attempt to impersonate one of the Queen's corgis.

The hoax divided opinion on the broadcaster's website Thursday.

"Good one. We are amused. A bit of harmless fun," said one listener, identified only as Jeff G.

"I reckon HRH Prince Charles would have had a bit of a laugh when he heard it. Pity there's so many sad sacks who can't see the lighter side of a couple of Aussies taking the piss out of the Poms."

But others were less amused, saying a line had been crossed.

"There is nothing funny about duping hard-working healthcare professionals or abusing a pregnant woman's right to privacy. Royal or not," said Emily Quiggin.

Julie Mango said: "Your actions have me feel ashamed as an Australian.

"I feel sorry for the staff you involved in your mindless prank, they will obviously be disciplined and could I guess even lose their jobs over this."

Kate is in hospital suffering from hyperemesis gravidarum, a severe form of morning sickness that affects about one in 200 pregnant women.

News of her pregnancy has ended the feverish speculation about a new royal heir that began immediately after the couple's lavish wedding in April 2011.

The baby will be third in line to the throne.

- AFP/ck

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Maya, Mulayam see through FDI in LS, tougher game in RS

NEW DELHI: It was again the same sort of numbers mismatch which has the opposition tearing its hair after each trial of strength with the UPA. In the contest in Lok Sabha on Wednesday over the desirability of allowing FDI in multi-brand retail, parties accounting for 261 members took strong positions against the government's decision. Yet, when the vote was taken, only 218 votes could be counted in the anti-FDI column.

The UPA's serial rescuers — the SP and the BSP with 43 votes between them — again performed the role to the hilt. The two UP outfits, which had slammed the FDI move on Tuesday, predictably decided not to translate their rhetoric into action.

They walked out of the House just before the members were called to stand up and be counted, allowing the UPA to romp home with 253 seats with a total 471 members voting.

A motion for amending the Foreign Exchange Management Act — an imperative for implementation of the decision to allow FDI in multi-brand retail — was also passed by 30 votes.

The rescue act attracted the familiar allegation that Mulayam Singh Yadav and Mayawati had let their fear of CBI get the better of their aversion for Walmart, but reinforced the reputation of UPA as escape artistes who manage to snatch a victory from the jaws of defeat every time. Beginning with its victory in the trust vote over the nuclear deal with the US, the UPA has consistently defied the heavy numerical odds to pip the rivals to the post.

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