Senate leaders to make last-ditch “fiscal cliff” effort

WASHINGTON (Reuters) – President Barack Obama and U.S. congressional leaders agreed on Friday to make a final effort to prevent the United States from going over the “fiscal cliff,” setting off intense bargaining over Americans’ tax rates as a New Year’s Eve deadline looms.

With only days left to avoid steep tax hikes and spending cuts that could cause a recession, two Senate veterans will try to forge a deal that has eluded the White House and Congress for months.

Obama said he was “modestly optimistic” an agreement could be found. But neither side appeared to give much ground at a White House meeting of congressional leaders on Friday.

What they did agree on was to task Harry Reid, the Democratic Senate majority leader, and Mitch McConnell, who heads the chamber’s Republican minority, with reaching a budget agreement by Sunday at the latest.

“The hour for immediate action is here. It is now. We’re now at the point where in just four days, every American’s tax rates are scheduled to go up by law. Every American’s paycheck will get considerably smaller. And that would be the wrong thing to do,” Obama told reporters.

A total of $ 600 billion in tax hikes and automatic cuts to government spending will start kicking in on Tuesday – New Year’s Day – if politicians cannot reach a deal. Economists fear the measures will push the U.S. economy into a recession.

Pessimism about the fiscal cliff helped push U.S. stocks down on Friday for a fifth straight day. The Dow Jones industrial average dropped 158.20 points, or 1.21 percent. Retailers are blaming worries about the “fiscal cliff” for lackluster Christmas season shopping.

Under the plan hashed out on Friday, any agreement between McConnell and Reid would be backed by the Senate and then approved in the Republican-controlled House of Representatives before the end of the year.

But the House could well be the graveyard of any accord.

A core of fiscal conservatives there strongly opposes Obama’s efforts to raise taxes for the wealthiest as part of a plan to close America’s budget deficit. House Republicans also want to see Obama commit to major spending cuts.

Talks between Obama and Republican House Speaker John Boehner collapsed last week when several dozen Republicans defied their leader and rejected a plan to raise rates for those earning $ 1 million and above.

A Democratic aide said Boehner stuck mainly to “talking points” in Friday’s White House meeting, with the message that the House had acted on the budget and it was now time for the Senate to move.

TALKS ON ‘BIG NUMBERS’

The two Senate leaders and their aides will plunge into talks on Saturday that will focus mainly on the threshold for raising income taxes on households with upper-level earnings, a Democratic aide said. Analysts say both sides could agree on raising taxes for households earning more than $ 400,000 or $ 500,000 a year.

The pair will also discuss whether the estate tax should be kept at current low levels or allowed to rise, the aide said.

Democrat Reid warned of tough talks.

“It’s not easy, we’re dealing with big numbers, and some of that stuff we do is somewhat complicated,” he said.

McConnell described Friday’s White House summit, also attended by Democratic House Minority Leader Nancy Pelosi, as “a good meeting.”

“So we’ll be working hard to try to see if we can get there in the next 24 hours. So I’m hopeful and optimistic,” he said.

If things cannot be worked out between the Senate leaders, Obama said he wanted both chambers in Congress to vote on a backup plan that would increase taxes only for households with more than $ 250,000 of annual income.

The plan would also extend unemployment insurance for about 2 million Americans and set up a framework for a larger deficit reduction deal next year.

There are signs in the options market that investor fear is taking hold. The CBOE Volatility Index, or the VIX, the market’s favored anxiety indicator, has remained at relatively low levels throughout this process, but it moved on Friday above 22, the highest level since June.

But some in the market were resigned to Washington going beyond the New Year’s Day deadline, as long as a serious agreement on deficit reduction comes out of the talks in early January.

“Regardless of whether the government resolves the issues now, any deal can easily be retroactive. We’re not as concerned with January 1 as the market seems to be,” said Richard Weiss, a senior money manager at American Century Investments.

Another component of the “fiscal cliff” – $ 109 billion in automatic spending cuts to military and domestic programs – is set to kick in on Wednesday.

S&P rating agency said on Friday the fiscal cliff impasse did not affect the U.S. sovereign rating.

That lifted the immediate threat of a downgrade from the agency, which cut the United States’ triple-A rating in August, 2011 in an unprecedented move after a similar partisan budget fight.

(Additional reporting by David Lawder, Thomas Ferraro, Rachelle Younglai and Mark Felsenthal; Writing by Alistair Bell; Editing by Peter Cooney)

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Obama ‘optimistic’ Senate leaders will reach fiscal cliff deal this weekend

(Reuters/Jonathan Ernst)

Following talks with congressional leaders that yielded no news of  a "fiscal cliff" agreement, President Barack Obama on Friday evening pressured lawmakers to reach a deal this weekend as the public's patience wears thin.

"America wonders why it is that in this town for some reason they can't get stuff done in an organized timetable, why everything always has to wait for the last minute," Obama said during a statement delivered in the White House briefing room. "The American people are not going to have any patience for a politically self-inflicted wound to our economy, not right now."

The president confirmed that following his Friday afternoon meeting with congressional leaders, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell have been tasked to reach an agreement to reduce the deficit and avoid the "fiscal cliff"—automatic spending cuts and tax increases set to go into effect Jan. 1.

But in the absence of a deal, Obama said he will "urge" Reid to "bring to the floor a basic package for an up-or-down vote" that would increase taxes on households earning more than $250,000, extend unemployment insurance and disarm a sequestration—provisions the president has supported.

But Republicans have been rejecting any tax increases, even for the wealthiest earners.

"If members of the House or Senate want to vote 'no,' they can," Obama said of his plan. "But we should let everybody vote. That's the way this is supposed to work."

The president referred to Friday's meeting, which also included House Speaker John Boehner, House Minority Leader Nancy Pelosi, Vice President Joe Biden and Treasury Secretary Tim Geithner, as "good and constructive" and said he remained "modestly optimistic" about Congress' ability to reach a deal.

But he blamed Congress for the 11th-hour holdup.

"The economy is growing, but sustaining that trend is going to require elected officials to do their jobs," Obama said.

No details on the proposals offered Friday were released by the White House or the lawmakers present.

According to a readout from the speaker's office, Boehner began the meeting by reminding those gathered "that the House has already acted to avert the entire fiscal cliff and is awaiting Senate action." Plan options were discussed and the speaker said the House will consider Senate-amended, House-passed legislation.

Following the meeting, McConnell said on the Senate floor that he was "hopeful and optimistic" about a deal.

"We had a good meeting down at the White House. We are engaged in discussions—the majority leader and myself and the White House—in the hopes that we can come forward as early as Sunday and have a recommendation that I can make to my conference and the majority leader can make to his conference," McConnell said. "And so we’ll be working hard to try to see if we can get there in the next 24 hours."

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China tightening controls on Internet

BEIJING (AP) — China‘s new communist leaders are increasing already tight controls on Internet use and electronic publishing following a spate of embarrassing online reports about official abuses.

The measures suggest China’s new leader, Xi Jinping, and others who took power in November share their predecessors’ anxiety about the Internet’s potential to spread opposition to one-party rule and their insistence on controlling information despite promises of more economic reforms.

“They are still very paranoid about the potentially destabilizing effect of the Internet,” said Willy Lam, a politics specialist at the Chinese University of Hong Kong. “They are on the point of losing a monopoly on information, but they still are very eager to control the dissemination of views.”

This week, China’s legislature took up a measure to require Internet users to register their real names, a move that would curtail the Web’s status as a freewheeling forum to complain, often anonymously, about corruption and official abuses. The legislature scheduled a news conference Friday to discuss the measure, suggesting it was expected to be approved.

That comes amid reports Beijing might be disrupting use of software that allows Web surfers to see sites abroad that are blocked by its extensive Internet filters. At the same time, regulators have proposed rules that would bar foreign companies from distributing books, news, music and other material online in China.

Beijing promotes Internet use for business and education but bans material deemed subversive or obscene and blocks access to foreign websites run by human rights and Tibet activists and some news outlets. Controls were tightened after social media played a role in protests that brought down governments in Egypt and Tunisia.

In a reminder of the Web’s role as a political forum, a group of 70 prominent Chinese scholars and lawyers circulated an online petition this week appealing for free speech, independent courts and for the ruling party to encourage private enterprise.

Xi and others on the party’s ruling seven-member Standing Committee have tried to promote an image of themselves as men of the people who care about China’s poor majority. They have promised to press ahead with market-oriented reforms and to support entrepreneurs but have given no sign of support for political reform.

Communist leaders who see the Internet as a source of economic growth and better-paid jobs were slow to enforce the same level of control they impose on movies, books and other media, apparently for fear of hurting fledgling entertainment, shopping and other online businesses.

Until recently, Web surfers could post comments online or on microblog services without leaving their names.

That gave ordinary Chinese a unique opportunity to express themselves to a public audience in a society where newspapers, television and other media are state-controlled. The most popular microblog services say they have more than 300 million users and some users have millions of followers reading their comments.

The Internet also has given the public an unusual opportunity to publicize accusations of official misconduct.

A local party official in China’s southwest was fired in November after scenes from a videotape of him having sex with a young woman spread quickly on the Internet. Screenshots were uploaded by a former journalist in Beijing, Zhu Ruifeng, to his Hong Kong website, an online clearing house for corruption allegations.

Some industry analysts suggest allowing Web surfers in a controlled setting to vent helps communist leaders stay abreast of public sentiment in their fast-changing society. Still, microblog services and online bulletin boards are required to employ censors to enforce content restrictions. Researchers say they delete millions of postings a day.

The government says the latest Internet regulation before the National People’s Congress is aimed at protecting Web surfers’ personal information and cracking down on abuses such as junk e-mail. It would require users to report their real names to Internet service and telecom providers.

The main ruling party newspaper, People’s Daily, has called in recent weeks for tighter Internet controls, saying rumors spread online have harmed the public. In one case, it said stories about a chemical plant explosion resulted in the deaths of four people in a car accident as they fled the area.

Proposed rules released this month by the General Administration of Press and Publications would bar Chinese-foreign joint ventures from publishing books, music, movies and other material online in China. Publishers would be required to locate their servers in China and have a Chinese citizen as their local legal representative.

That is in line with rules that already bar most foreign access to China’s media market, but the decision to group the restrictions together and publicize them might indicate official attitudes are hardening.

That comes after the party was rattled by foreign news reports about official wealth and misconduct.

In June, Bloomberg News reported that Xi’s extended family has amassed assets totaling $ 376 million, though it said none was traced to Xi. The government has blocked access to Bloomberg’s website since then.

In October, The New York Times reported that Premier Wen Jiabao’s relatives had amassed $ 2.7 billion since he rose to national office in 2002. Access to the Times’ Chinese-language site has been blocked since then.

Previous efforts to tighten controls have struggled with technical challenges in a country with more than 500 million Internet users.

Microblog operators such as Sina Corp. and Tencent Ltd. were ordered in late 2011 to confirm users’ names but have yet to finish the daunting task.

Web surfers can circumvent government filters by using virtual private networks — software that encrypts Web traffic and is used by companies to transfer financial data and other sensitive information. But VPN users say disruptions that began in 2011 are increasing, suggesting Chinese regulators are trying to block encrypted traffic.

Curbs on access to foreign sites have prompted complaints by companies and Chinese scientists and other researchers.

In July, the American Chamber of Commerce in China said 74 percent of companies that responded to a survey said unstable Internet access “impedes their ability to do business.”

Chinese leaders “realize there are detrimental impacts on business, especially foreign business, but they have counted the cost and think it is still worthwhile,” said Lam. “There is no compromise about the political imperative of controlling the Internet.”

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Police offer ‘virtual ridealongs’ via Twitter

SIOUX FALLS, S.D. (AP) — Riding side by side as a police officer answers a call for help or investigates a brutal crime during a ridealong gives citizens an up close look at the gritty and sometimes dangerous situations officers can experience on the job.

But a new social media approach to informing the public about what officers do is taking hold at police departments across the United States and Canada — one that is far less dangerous for citizens but, police say, just as informative.

With virtual ridealongs on Twitter, or tweetalongs, curious citizens just need a computer or smartphone for a glimpse into law enforcement officers‘ daily routines.

Tweetalongs typically are scheduled for a set number of hours, with an officer — or a designated tweeter like the department’s public information officer — posting regular updates to Twitter about what they see and do while on duty. The tweets, which also include photos and links to videos of the officers, can encompass an array of activities — everything from an officer responding to a homicide to a noise complaint.

Police departments say virtual ridealongs reach more people at once and add transparency to the job.

“People spend hard-earned money on taxes to allow the government to provide services. That’s police, fire, water, streets, the whole works, and there should be a way for those government agencies to let the public know what they’re getting for their money,” said Chief Steve Allender of the Rapid City Police Department in South Dakota, which started offering tweetalongs several months ago — https://twitter.com/rcpdtweetalong — after watching departments in Seattle, Kansas City, Mo., and Las Vegas do so.

On the day before Thanksgiving, Tarah Heupel, the Rapid City Police Department’s public information officer, rode alongside Street Crimes Officer Ron Terviel. Heupel posted regular updates every few minutes about what Terviel was doing, including the officer citing a woman for public intoxication, responding to a call of three teenagers attempting to steal cough syrup and body spray from a store and locating a man who ran from the scene of an accident. Photos were included in some of the tweets.

Michael Taddesse, a 34-year-old university career specialist in Arlington, Texas, has done several ridealongs with police and regularly follows multiple departments that conduct tweetalongs.

“I think the only way to effectively combat crime is to have a community that is engaged and understands what’s going on,” he said.

Ridealongs where “you’re out in the elements” are very different than sitting behind a computer during a tweetalong and the level of danger is “dramatically decreased,” he said. But in both instances, the passenger gains new information about the call, what laws may or may not have been broken and what transpires, he added.

For police departments, tweetalongs are just one more way to connect directly with a community through social media.

More than 92 percent of police departments use social media, according to a survey of 600 agencies in 48 states conducted by the International Association of Chiefs of Police’s Center for Social Media. And Nancy Kolb, senior program manager for IACP, called tweetalongs a “growing trend” among departments of all sizes.

There is no set protocol and departments are free to conduct the tweetalong how they see fit, she said.

In Ontario, Canada, the Niagara Regional Police Service conducted their first virtual ridealong in August over a busy eight-hour Friday night shift. The police department’s followers were able to see a tweet whenever the police unit was dispatched to one of the more than 140,000 calls received that night.

Richard Gadreau, the social media officer for the police department, said officers routinely take people out on real ridealongs, but there is a waiting list and preference is given to people interested in becoming an officer.

With tweetalongs, many calls also mean many tweets. Kolb said departments are cognizant of cluttering peoples’ Twitter feeds.

That’s why the Rapid City Police Department decided to create a separate account for the tweetalong, Allender said.

Kolb also said officers are careful not to tweet personal or sensitive information. Officers typically do not tweet child abuse or domestic abuse cases, and they usually only tweet about a call after they leave the scene to protect officers and callers.

But Allender, the chief of police in Rapid City, said tweetalongs also show some of the more outrageous calls police deal with on a regular basis — like the kid who breaks out the window of a police car while the officer is standing on the sidewalk.

“Real life is funnier than any comedy show out there and not to make fun of people, embarrass them or humiliate them, but people do funny things,” Allender said. “… I mean, that guy deserves a little bit of ridicule, and everyone who would be watching would agree. That’s just good clean fun to me.”

___

Rapid City Police Department’s “Tweetalong” account: https://twitter.com/rcpdtweetalong

___

Follow Kristi Eaton on Twitter at http://twitter.com/kristieaton

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KOL’s Nathan Followill, Jessie Baylin welcome baby

NASHVILLE, Tenn. (AP) — The Kings of Leon family has just gotten bigger.

Drummer Nathan Followill and his wife, singer-songwriter Jessie Baylin, welcomed a baby girl on Wednesday. It’s the first baby for the couple and the third for the Followill family band. Nathan Followill’s brother Caleb and cousin Matthew also have children.

A spokesman says Violet Marlowe Followill was born at 4:01 p.m. in Nashville. She was 7 pounds, 13 ounces at birth.

The baby comes before what promises to be a busy 2013 for Kings of Leon. The Nashville, Tenn.-based band has been working on new music for an album that’s expected to be released next year. Baylin released her third album, “Little Spark,” earlier this year.

The couple has been married since 2009.

___

Online:

http://kingsofleon.com

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Former President George H.W. Bush remains in intensive care

AUSTIN, Texas (Reuters) – Former President George H.W. Bush remained in the intensive care unit of a Houston hospital on Thursday, but his longtime chief of staff issued a reassuring message, urging the media and the public to “put the harps back in the closet.”

Bush, 88, a Republican who during his one term in office led a coalition of nations that ejected Iraqi forces from Kuwait in 1991, was admitted to Methodist Hospital November 23 for bronchitis.

He was transferred to intensive care on Sunday after setbacks including a persistent fever, family spokesman Jim McGrath has said.

“I don’t have any guidance so far today except to say no news is good news,” McGrath said on Thursday. Hospital spokesman George Kovacik added that the former president remained in intensive care on Thursday.

But in a statement addressed to the “national media” on Bush’s condition on Thursday, chief of staff Jean Becker sought to strike an upbeat tone.

“Yes, President Bush is in ICU where he is getting the best medical care in the world,” she wrote. “Is he sick? Yes. Does he plan on going anywhere soon? No. He has every intention of staying put.

“He would ask me to tell you to please ‘put the harps back in the closet,’” she said.

On a more serious note, Becker said her boss was expected to remain in the hospital for “a while,” adding, “He is 88 years old, he had a terrible case of bronchitis which then triggered a series of complications.” She did not elaborate.

McGrath on Wednesday described Bush as alert and talking to medical staff.

On Thursday evening, McGrath released a statement from Bush mourning the death of retired Army General Norman Schwarzkopf, commander of the U.S. and allied forces that routed Iraqi ruler Saddam Hussein’s military from Kuwait during a six-week war in 1991.

He said the four-star general, who died at age 78, “epitomized the ‘duty, service, country’ creed that has defended our freedom and seen this great nation through our most trying international crises.”

Bush has lower-body parkinsonism, which causes a loss of balance, and has used wheelchairs for more than a year.

The 41st U.S. president and father of former President George W. Bush, he served as a congressman, ambassador to the United Nations, envoy to China, CIA director and vice president for two terms under Ronald Reagan during a political career spanning four decades.

(Reporting by Corrie MacLaggan; Writing by Steve Gorman; Editing by Paul Thomasch, Phil Berlowitz and Paul Simao)

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Retired Gen. Norman Schwarzkopf dies

H. Norman Schwarzkopf, the retired general credited with leading U.S.-allied forces to a victory in the first Gulf War, has died at age 78, a U.S. official confirmed to ABC News.

He died today in Tampa, Fla., a U.S. official told the Associated Press.

Schwarzkopf, sometimes called "Stormin' Norman" because of his temper, actually led Republican administrations to two military victories: a small one in Grenada in the 1980s and a big one as de facto commander of allied forces in the Gulf War in 1991.

"'Stormin' Norman' led the coalition forces to victory, ejecting the Iraqi Army from Kuwait and restoring the rightful government," read a statement by former Secretary of State Colin Powell, who was chairman of the Joint Chiefs of Staff during the Gulf War. "His leadership not only inspired his troops, but also inspired the nation."

Schwarzkopf's success during what was known as Operation Desert Storm came under President George H.W. Bush, who said today through his office that he mourned "the loss of a true American patriot and one of the great military leaders of his generation."

"Gen. Norm Schwarzkopf, to me, epitomized the 'duty, service, country' creed that has defended our freedom and seen this great nation through our most trying international crises," Bush said. "More than that, he was a good and decent man -- and a dear friend."

Bush's office released the statement though Bush, himself, was ill, hospitalized in Texas with a stubborn fever and on a liquids-only diet.

Schwarzkopf, the future four-star general, was born Aug. 24, 1934, in Trenton, N.J. He was raised as an army brat in Iran, Switzerland, Germany and Italy, following in his father's footsteps to West Point and being commissioned as a second lieutenant in 1956.

Schwarzkopf's father, who shared his name, directed the investigation of the Lindbergh baby kidnapping as head of the New Jersey State Police, later becoming a bridgadier general in the U.S. Army.

The younger Schwarzkopf earned three Silver Stars for bravery during two tours in Vietnam, gaining a reputation as an opinionated, plain-spoken commander with a sharp temper who would risk his own life for his soldiers.

"He had volunteered to go to Vietnam early just so he could get there before the war ended," said former Army Col. William McKinney, who knew Schwarzkopf from their days at West Point, according to ABC News Radio.

In 1983, as a newly-minted general, Schwarzkopf once again led troops into battle in President Reagan's invasion of Granada, a tiny Caribbean island where the White House saw American influence threatened by a Cuban-backed coup.

But he gained most of his fame in Iraq, where he used his 6-foot-3, 240-pound frame and fearsome temper to drive his troops to victory. Gruff and direct, his goal was to win the war as quickly as possible and with a focused objective: getting Iraq out of Kuwait.

"If it had been our intention to take Iraq, if it had been our intention to destroy the country, if it had been our intention to overrun the country, we could have done it unopposed," he said at a military briefing in 1991.

He spoke French and German to coalition partners, showed awareness of Arab sensitivities and served as Powell's operative man on the ground.

Powell today recalled Schwarzkopf as "a great patriot and a great soldier," who "served his country with courage and distinction for over 35 years."

"He was a good friend of mine, a close buddy," Powell added. "I will miss him."

Schwarzkopf retired from the Army after Desert Storm in 1991, writing an autobiography, becoming an advocate for prostate cancer awareness, serving on the boards of various charities and lecturing. He and his wife, Brenda, had three children.

Schwarzkopf spent his retirement in Tampa, home base for his last military assignment as commander-in-chief of U.S. Central Command.

ABC News' Dana Hughes, Gina Sunseri and Polson Kanneth contributed to this report.

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Afghan bomber attacks near major US base

KABUL, Afghanistan (AP) — A vehicle driven by a suicide bomber exploded at the gate of a major U.S. military base in eastern Afghanistan on Wednesday, killing the attacker and three Afghans, Afghan police said. The Taliban claimed responsibility for the attack.

Police Gen. Abdul Qayum Baqizai said a local guard who questioned the vehicle driver at the gate of Camp Chapman was killed along with two civilians and the assailant. The camp is located adjacent to the airport of the capital of Khost province, which borders Pakistan. Chapman and nearby Camp Salerno had been frequently targeted by militants in the past, but violent incidents have decreased considerably in recent months.

Taliban spokesman Zabihullah Mujahid said in an email that the bomber targeted Afghan police manning the gate and Afghans working for the Americans entering the base. He claimed high casualties were inflicted.

NATO operates with more than 100,000 troops in the country, including some 66,000 American forces. It is handing most combat operations over to the Afghans in preparation for a pullout from Afghanistan in 2014. Militant groups, including the Taliban, rarely face NATO troops head-on and rely mainly on roadside bombs and suicide attacks.

NATO forces and foreign civilians have also been increasingly attacked by rogue Afghan military and police, eroding trust between the allies.

On Tuesday, the Interior Ministry said a policewoman who killed an American contractor in Kabul a day earlier was a native Iranian who came to Afghanistan and displayed “unstable behavior” but had no known links to militants.

The policewoman, identified as Sgt. Nargas, shot 49-year-old Joseph Griffin, of Mansfield, Georgia, on Monday, in the first such shooting by a woman in the spate of insider attacks. Nargas walked into a heavily-guarded compound in the heart of Kabul, confronted Griffin and shot him once with her pistol.

The U.S-based security firm DynCorp International said on its website that Griffin was a U.S. military veteran who earlier worked with law enforcement agencies in the United States. In Kabul, he was under contract to the NATO military command to advise the Afghan police force.

The ministry spokesman, Sediq Sediqi, told a news conference that Nargas, who uses one name like many in the country, was born in Tehran, where she married an Afghan. She moved to the country 10 years ago, after her husband obtained fake documents enabling her to live and work there.

A mother of four in her early 30s, she joined the police five years ago, held various positions and had a clean record, he said. Sediqi produced an Iranian passport that he said was found at her home.

No militant group has claimed responsibility for the killing.

The chief investigator of the case, Police Gen. Mohammad Zahir, said that during interrogation, the policewoman said she had plans to kill either the Kabul governor, city police chief or Zahir himself, but when she realized that penetrating the last security cordons to reach them would be too difficult, she saw “a foreigner” and turned her weapon on him.

There have been 60 insider attacks this year against foreign military and civilian personnel, compared to 21 in 2011. This surge presents another looming security issue as NATO prepares to pull out almost all of its forces by 2014, putting the war against the Taliban and other militant groups largely in the hands of the Afghans.

More than 50 Afghan members of the government’s security forces also have died this year in attacks by their own colleagues. The Taliban claims such incidents reflect a growing popular opposition to the foreign military presence and the Kabul government.

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Analysis: Amazon’s Christmas faux pas shows risks in the cloud

(Reuters) – A Christmas Eve glitch traced to Amazon.com Inc that shuttered Netflix for users from Canada to South America highlights the risks that companies take when they move their datacenter operations to the cloud.

While the high-profile failure – at least the third this year – may cause some Amazon Web Services customers to consider alternatives, it is unlikely to severely hurt a fast-growing business for the cloud-computing pioneer that got into the sector in 2006 and has historically experienced few outages.

“The benefits still outweigh the risks,” said Global Equities Research analyst Trip Chowdhry.

“When it comes to the cloud, Amazon has got it right.”

The latest service failure comes at a critical time for Amazon, which is betting that AWS can become a significant profit generator even if the economy continues to stagnate. Moreover, it is increasingly targeting larger corporate clients that have traditionally shied away from moving critical applications onto AWS.

AWS, which Amazon started more than six years ago, provides data storage, computing power and other technology services from remote locations that group thousands of servers across areas than can span whole football fields. Their early investment made it a pioneer in what is now known as cloud computing.

Executives said last month at an Amazon conference in Las Vegas they could envision the division, which lists Pinterest, Shazam and Spotify among its fast-growing clients, becoming its biggest business, outpacing even its online retail juggernaut. Evercore analyst Ken Sena expects AWS revenue to jump 45 percent a year, from about $ 2 billion this year to $ 20 billion in 2018.

The service has boomed because it is cheap, relatively easy to use, and can be shut off, scaled back or ramped up quickly depending on companies’ needs. As the longest-running player in the game, Amazon now boasts the widest array of datacenter products and services, plus a broader stable of clients than rivals like Google Inc, Rackspace Inc and Salesforce.com Inc.

Outages such as the one that took down Netflix and other websites on the eve of one of the biggest U.S. holidays are part and parcel of the nascent business, analysts say. Moreover, outages have been a problem long before the age of cloud computing, with glitches within corporate datacenters and telecommunications hubs triggering myriad service disruptions.

COMING SOON: POST-MORTEM

Amazon’s latest service failure comes months after two high-profile outages that hit Netflix and other popular websites such as photo-sharing service Instagram and Pinterest. Industry executives, however, say its downtimes tend to attract more attention because of its outsized market footprint.

Netflix – which CEO Reed Hastings said relies on AWS for 95 percent of its datacenter needs – would not comment on whether they were pondering alternatives. Analysts say the video streaming giant is unlikely to try a large-scale switch, partly because all cloud providers experience outages.

“Despite a steady stream of these service outages, the demand for cloud services offered by AWS, Google, etc. continues to escalate because these services are still reliable enough to satisfy customer expectations,” said Jeff Kaplan, managing director of consultancy ThinkStrategies Inc.

“They offer cost-savings and elasticities that are too attractive for companies to ignore.”

But “Netflix and other organizations which rely on AWS will have to reexamine how they configure their services and allocate their service requirements across multiple providers to mitigate over-dependency and risks.”

AWS spokeswoman Rena Lunak said the outage was traced to a problem affecting customers at its oldest data center, run out of northern Virginia, which was linked also to the June failure.

The latest glitch involved a service known as Elastic Load Balancing, which automatically allocates incoming Web traffic across multiple servers in order to boost the performance of a website. She declined to provide further details about the outage, saying the company would be publishing a full post-mortem within days.

AWS has traditionally been used by start-up tech companies and smaller businesses that anticipate rapid growth in online traffic but are unwilling or unable to shell out on IT equipment and management upfront.

The company has more recently started winning more and more business from larger corporations. It has also set up a unit that caters to government agencies.

Regardless, Amazon’s clientele would do well not to put all their eggs in one basket, analysts say.

“Service outages do occur, but they are not common enough to cause users of these services to abandon today’s Cloud service providers at significant rates. In fact, every major Cloud service provider has experienced outages,” Kaplan said.

“Therefore, organizations that rely on these services are putting backup and recovery systems and protocols in place to mitigate the risks of future outages.”

(Additional reporting; editing by Edwin Chan and Richard Chang)

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DC police investigating ‘Meet the Press’ incident

WASHINGTON (AP) — District of Columbia police say they are investigating an incident in which NBC News journalist David Gregory displayed what he described as a high-capacity ammunition magazine on “Meet the Press.”

Gun laws in the nation’s capital generally restrict the possession of high-capacity magazines, regardless of whether the device is attached to a firearm. Gregory held up the magazine as a prop for Sunday’s segment, apparently to make a point during an interview, even though D.C. police say NBC had already been advised not to use it in the show.

“NBC contacted (the Metropolitan Police Department) inquiring if they could utilize a high capacity magazine for their segment. NBC was informed that possession of a high capacity magazine is not permissible and their request was denied. This matter is currently being investigated,” police spokeswoman Gwendolyn Crump said in a written statement. She declined to comment further.

While interviewing National Rifle Association CEO Wayne LaPierre for Sunday’s program, Gregory held up an object that he said was a magazine that could hold 30 rounds.

“Here is a magazine for ammunition that carries 30 bullets. Now, isn’t it possible that if we got rid of these, if we replaced them and said, ‘Well, you can only have a magazine that carries five bullets or ten bullets,’ isn’t it just possible that we could reduce the carnage in a situation like Newtown?’” Gregory asked, referring to the December 14 shooting in which a gunman massacred 20 children and 6 adults at Sandy Hook Elementary School in Connecticut.

LaPierre replied: “I don’t believe that’s going to make one difference. There are so many different ways to evade that even if you had that” ban.

It was not clear how or where Gregory obtained the magazine, and an NBC News spokeswoman declined to comment Wednesday.

“Meet the Press” is generally taped in Washington.

Entertainment News Headlines – Yahoo! News

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