Surfer rides 'highest ever' wave

30 January 2013 Last updated at 09:37 ET

An American man has ridden what may be the highest wave ever caught by a surfer.

Garrett McNamara surfed the wave on Monday off the coast of Portugal, in the same spot where he surfed the current world-record wave of 78ft (24m) in November 2011.

Experts will now have to certify the new record.

The giant wave formed above an underwater canyon famous for being the world's biggest wave generator.

Some reports say the wave may have been as high as 100ft (30m), although this is yet to be confirmed.

"You are just going so fast," McNamara told ABC television. "It's really, really similar to snowboarding on giant mountains.

"And you're just chattering, flying down this bumpy, bumpy mountain. Your brain is getting rattled. Your whole body is getting rattled."

He said he was relieved to have avoided a rocky section of the coast.

McNamara began surfing at 11 and turned professional six years later.

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Swell waves

Swell waves can travel thousands of miles across the Atlantic from as far west as the Caribbean.

Canyon

The Nazare Canyon, which is an underwater valley the size of the Grand Canyon, helps concentrate the waves' energy.

Shore

As the water becomes more shallow, the waves slow down while maintaining their energy, so they become bigger. The gradient of the shoreline at the head of the canyon is ideal for producing plunging breakers which surfers love. (Video clip is of McNamara breaking the world record in the same spot in November 2011.)

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US economy in surprise downturn

30 January 2013 Last updated at 10:47 ET

The US economy unexpectedly shrank at an annualised rate of 0.1% in the fourth quarter of 2012, initial official estimates indicate.

If confirmed, it would be the first contraction logged by the US economy since the 2009 global recession.

The world's largest economy grew 3.1% in July to September.

The fourth quarter period was dominated by the "fiscal cliff" - the spending cuts and tax rises that had been due to come into force from 1 January.

These were avoided by a last-minute deal between the Republican-dominated Congress and the White House. However, economists warned at the time that fears of an abrupt cut in government spending were undermining business and consumer confidence.

However, part of that deal includes tax rises for the highest-earning Americans and - more significantly for the economy - the expiry of a payroll tax holiday for all US employees, something which is widely expected by economists to further weigh on growth during the current quarter.

Spending cuts

The fourth-quarter shrinkage in economic output comes as a shock to analysts on Wall Street, who had been expecting 1.1% growth according to a poll by news agency Reuters. Not one economist surveyed had predicted an economic contraction.

It will add to pressure on the US Federal Reserve to do more to stimulate the economy. Members of its Federal Open Markets Committee are due to announce the conclusions of their latest policy-setting meeting later on Wednesday, and will have had an advance look at the economic data.

Growth was dragged down by a 22% cut in the federal government's defence spending - the biggest since 1972, when the US was winding down from the end of the Vietnam War - and by the decision of many businesses to halt the rapid rebuilding of their inventories that began over the summer.

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These two relatively volatile components of the data subtracted a combined 2.6 percentage points from the overall growth figure.

Consumer spending did pick up, as did business investment, suggesting that the economy may have some underlying momentum. Sales of computers and cars both made positive contributions to the economy's performance.

Residential investment also grew 15%, adding to evidence that the housing market has finally turned the corner.

"Frankly, this is the best-looking contraction in US [gross domestic product] you'll ever see," said Paul Ashworth, an economist at Capital Economics, in a note to clients. "The drag from defence spending and inventories is a one-off. The rest of the report is all encouraging."

The October-to-December period was also negatively affected by Storm Sandy, which caused the closure of many factories and businesses in the New York area, and by a sharp drop in exports.

Growth for 2012 as a whole came in at 2.2%, up from 1.8% in 2011, but still unusually slow compared with previous economic recoveries in the US following recessions in the post-War era.

Debt ceiling

Looking ahead, domestic spending in the current quarter is expected to be dogged by further uncertainty over the federal government's tax and spending.

Workers have already experienced a 2% average cut in their take-home pay, due to the expiry of the payroll tax holiday. That means a household earning $50,000 a year will have about $1,000 less to spend.

The income lost is likely to have been behind a sharp fall in consumer confidence recorded by surveys in January.

Meanwhile, the recently re-elected President Barack Obama and Congress are expected to clash once again in the coming months over the debt ceiling.

The US Treasury is approaching the $16.4tn (£10.3tn) legal limit on its total debt, and must gain permission from Congress to borrow the money needed for it to continue meeting its bills.

Last time there was a stand-off over the issue, in the summer of 2011, the political deadlock prompted ratings agency Standard & Poor's to deprive the US of its top AAA rating, a move that sent stock markets sharply lower.

The US House of Representatives has passed a bill to extend the country's debt limit until May, deferring the budget debate for a few months at least.

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UK first to get Blackberry 10 phone

30 January 2013 Last updated at 11:01 ET

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The BBC's Mark Gregory looks at Timeshift and Blackberry Balance on the new Z10 handset

The first two handsets powered by the new Blackberry 10 operating system have been unveiled.

The Z10 is controlled via a 4.2in (10.7cm) touchscreen while the Q10 has a smaller 3.1in (7.9cm) screen and physical keyboard.

The UK will be the first to get the Z10 where it will launch on Thursday.

Its appeal could determine whether the firm - which has switched its name from Research In Motion to Blackberry - has a long term future.

The new operating system had originally been due for release last year. Canada and the UAE will get the Z10 in February and the firm said it should go on sale in the US in March.

"Two years ago we had to make a very serious decision," chief executive Thorsten Heins told a press conference in New York.

"Adopt someone else's platform or build a whole new one from ground up for Blackberry. And we made the tough call to go it alone.

"Bringing an entirely new platform to the market and ushering this company through a really difficult transition took careful planning and we absolutely knew it was risky."

Shrinking share

According to data from IDC, Blackberry devices used to account for just over 19% of global smartphone shipments at the start of 2010 - but it suggests that figure had dropped to less than 4% by the end of last year.

"The devices are probably the firm's last attempt to make in impact in this market," Alexander Peterc, technology analyst at BNP Paribas, told the BBC.

"The firm's market share has fallen because they haven't had a product launch in a year and a half. BB7 - the previous system upgrade which was just incremental - was, let's say, a failure.

"They still have a following in enterprise where they will probably find a reliable source of revenue for the next 12 months but it's also crucial for them to generate at least a half-decent amount of traction with consumers."

Touchscreen keyboard

The new user interface allows up to eight apps to run simultaneously, four of which can appear in small windows on the same screen - something the firm describes as "true multitasking".

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Michelle Fleury spoke to chief executive Thorsten Heins, and looked at the Blackberry 10's 'hub' feature

During a demonstration executives said the intention was to let users "flow" through applications using swipes and other gestures rather than copy the "in and out" nature experienced when navigating rivals' devices.

For example BB10's Hub - which brings together emails, texts and other notifications - can be accessed by swiping up and then to the right from any app. The user then needs to reverse the gesture to return to where they were.

The BBM messaging app can now make audio and video calls as well as being able to share what is on one person's screen with the other user's device.

The Z10 is not RIM's first to feature a touchscreen keyboard, but it has adopted new features to attract users more used to physical buttons.

These include a feature which learns the words and phrases the owner most often types and then uses this to suggest words which float above the keyboard and can be flicked into place.

It will also learn to anticipate and correct frequently made mistakes - such as if the user often hits the letter C when they mean to tap space.

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Blackberry head of software Vivek Bhardwaj demonstrates the new BBM video feature

"The new keyboard is the jewel in the crown and Blackberry has mastered the experience," said Francisco Jeronimo, European mobile devices research manager at IDC.

"The browser, one of the weakest features on the old Blackberry devices, is now an enjoyable experience.

"This is not a new Blackberry device, this is a completely new Blackberry experience. For the first time the traditional keyboard Blackberry users will it find easier to type on a touchscreen."

The handsets also include a mix of features designed to make them appeal as a crossover business-personal machine.

Blackberry Balance sets up a "work perimeter" on the phones so that data belonging to the user's employer can be limited to approved apps, while photos and other personal information can be used across a wider range of software.

Companies are also given the option of being able to remotely wipe sensitive files.

Meanwhile the in-built Pictures app includes a facility called Timeshift designed to ensure everyone has their eyes open in group photos.

It involves the user taking several pictures in a row and then scrolling through the shots to select the best frame.

Tough competition

Blackberry said it had secured more than 70,000 additional apps for its Blackberry World app store including Skype, Angry Birds, Facebook and Whatsapp.

In addition it offers music, TV shows and movies. However, there is no official YouTube app.

But some analysts suggested its efforts might have come too late to make much headway against the most popular smartphone platforms: Google's Android and Apple's iOS.

"Blackberry continues to face the twin demons of consumer-driven buying power and a chronic inability to appeal to mature market consumers," said Jan Dawson, chief telecoms analyst at Ovum.

"There is nothing in what we've seen so far of BB10 that suggests it will conquer the second of these demons, and the first is utterly out of Blackberry's control.

"We don't expect a speedy exit from the market; with no debt, 80 million subscribers and profitability in the black in at least some recent quarters, the company can continue in this vein for years. But its glory days are past, and it is only a matter of time before it reaches a natural end."

Blackberry's shares fell more than 6% following the launch.

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Deadly storms wreak havoc in US

30 January 2013 Last updated at 14:21 ET

A sprawling storm system has brought havoc to a swathe of the US, leaving two people dead and thousands of households without electricity.

One person died when an apparent twister hit the state of Georgia, overturning cars on a motorway.

Bartow County Fire Chief Craig Millsap said at least 10 cars had been flipped over on Interstate 75.

A man died in Nashville, Tennessee, when high winds toppled a tree on to a shed he had been taking shelter in.

The storm system also brought mayhem to parts of Mississippi, Arkansas, Kentucky and Indiana.

More than 60,000 customers have lost electricity from the Gulf Coast to Ohio as a result, it is estimated.

Footage showed a funnel cloud tearing through the Georgian town of Adairsville, 60 miles (97km) north-west of Atlanta.

Interstate 75 was closed in both directions after vehicles were flipped and tossed on to the grassy shoulder.

The Atlanta Journal-Constitution reports there have been numerous emergency calls of trauma and injuries.

The National Weather Service (NWS) warned of "major structure damage" in Adairsville.

Reports said people were trapped in homes and businesses and aerial news footage showed widespread damage at a factory.

Elsewhere:

• In Arkansas, one man was wounded by lightning
• In Kentucky, two people were injured when their mobile home was blown off its foundations
• In Mississippi, power cuts and damaged homes were reported in at least 10 counties
• In Indiana, piles of debris and downed power lines blocked roadways

The NWS is reporting golf-ball sized hail stones in some areas.

Meteorologists say warm weather from the Gulf of Mexico collided with a cold front from the west, creating volatile conditions.

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US standoff over killer kidnapper

30 January 2013 Last updated at 16:43 ET

Police in the state of Alabama have surrounded a man who has taken a six-year-old boy hostage, after boarding his school bus and killing the driver.

The gunman, named by neighbours as Jimmy Lee Dykes, 65, was holding the youngster at his remote home, police said.

The suspect, a retired lorry driver, is not believed to be related to the boy.

The incident began in Midland City on Tuesday afternoon when the bus driver refused to hand over the child.

Mr Dykes shot the driver and abducted the youngster, authorities say.

Suspect 'menaced neighbours'

According to witnesses, the attack began when the school bus stopped to let off two children.

Mr Dykes grabbed the door so it could not close and came on board, demanding two boys aged six and eight.

When the 66-year-old driver, Charles Albert Poland, blocked the bus aisle with his arm, Mr Dykes fired four shots, killing him.

Church Pastor Michael Senn, who comforted the children after the incident, was quoted by AP news agency as saying: "As far as we know there is no relation at all. He just wanted a child for a hostage situation."

County Coroner Woodrow Hilboldt said Mr Dykes was believed to be hiding in something similar to a tornado bunker.

The bunker had food and electricity, and the boy was watching television, said law enforcement officials.

The authorities lowered medicine at one point into the bunker for the boy, with the kidnapper's agreement.

It was not clear if the suspect had any demands.

Nearby houses were evacuated when police discovered what they believed to be a bomb on his property.

According to court records, Mr Dykes was due to appear in court on Wednesday for menacing neighbours as they drove past his house some weeks ago.

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Giffords pleads for gun control

30 January 2013 Last updated at 19:05 ET

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"Speaking is difficult, but I need to say something important"

Wounded former Representative Gabrielle Giffords has implored Congress to curb gun violence, at the first hearing on the issue this year on Capitol Hill.

The Arizona Democrat, who was shot in the head in a 2011 attack that killed six people, said too many children were dying in shootings.

But the National Rifle Association told the Senate judiciary committee that gun control was not the answer.

The renewed gun-control drive follows last month's massacre in Connecticut.

Twenty children and six adults were killed in the attack at a primary school in Newtown, which shocked a nation with the world's highest rate of gun ownership. Firearms sales in the US have risen since the shooting.

Continue reading the main story

On Capitol Hill

Suzanne Kianpour BBC News, Washington

---

The line to get into the Senate Office Building stretched down and around the corridor. People from all walks of life had come to hear the first hearing on guns in the new 113th Congress. The testimony began with the 71 carefully spoken words by former Arizona congresswoman Gabby Giffords, who was shot at close range while meeting constituents in 2011.

Two years ago, she was in a critical condition. The four-hour hearing was relatively tame for a politically charged subject. There was limited reaction from the audience, except when pro-gun witness Gayle Trotters said women loved AR-15s, the semi-automatic rifle used in last month's Newtown shooting.

Afterwards, the media scrum focused on Ms Giffords, following her measured steps from the hearing room to the lifts, guided by her husband. Camera crews followed in silence until someone asked what she thought of the hearing. Ms Giffords was smiling as the gold-coloured Senate elevators closed.

Ms Giffords, who is still recovering after being shot by a mentally ill gunman while meeting her constituents in Tucson, opened Wednesday's hearing saying: "Violence is a big problem.

"Too many children are dying. Too many children. We must do something. It will be hard. But the time is now. You must act. Be bold. Be courageous. Americans are counting on you."

Her husband, former astronaut Mark Kelly, also testified.

The couple, both gun owners, recently launched a political action committee, Americans for Responsible Solutions, intended to combat firearms violence.

Mr Kelly told the panel: "When dangerous people get guns, we are all vulnerable, at the movies, at church, conducting our everyday business, meeting with a government official."

During the hearing, reports of another mass shooting emerged from Ms Giffords' home state.

Police in Phoenix, Arizona, said three people had been shot - one killed and two others critically wounded - at an office complex. The gunman's whereabouts were unknown.

NRA opposes checks

Wayne LaPierre, executive vice-president of the NRA, an influential firearms lobby group, told the hearing that gun control measures had failed in the past.

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LaPierre: Government should not dictate what we can lawfully own and use to protect our families

President Barack Obama this month proposed sweeping measures on guns, including a renewed ban on assault rifles and wider background checks on buyers.

But Mr LaPierre said the government's own figures had shown the last assault-weapons ban from 1994-2004 made no impact on lowering crime.

"Law-abiding gun owners will not accept blame for the acts of violent or deranged criminals," said Mr LaPierre.

"Nor do we believe that government should dictate what we can lawfully own and use to protect our families."

Under questioning, Mr LaPierre conceded that his organisation no longer supported universal background checks for gun owners.

The Senate judiciary committee is divided on the White House plans, which face a rocky road in both the Democratic-led Senate and Republican-controlled House of Representatives.

Continue reading the main story

Guns in America

• While some 46% of households and 29% of individuals said they owned a gun in 1990, two decades later this had fallen to 32% and 21%.
• DC has the most gun homicides; Connecticut has fewer than average
• For more statistics, as well as the difference between a semi-automatic rifle and pistol, visit the BBC's In statistics: Guns in the US

Republican Senator Orrin Hatch said on Tuesday that he was "a strong supporter of the second amendment" - referring to a clause in the US Constitution on the right to bear arms.

"And I don't intend to change," he added.

Another member, Democratic Senator Dianne Feinstein, has already introduced a bill, similar to the White House plan, that would seek to ban assault weapons and limit ammunition magazines to less than 10 rounds.

But Democratic Senator Charles Schumer said he believed it would be possible to introduce wider background checks.

Those buying guns from licensed stores and vendors are required to face a background check, but some purchasers buying guns from private sales at firearms shows and online do not need to do so, an exception often referred to as the gun-show loop-hole.

President Obama has called for background checks in both instances, as well as increased reporting by states on those who are not allowed to buy a gun for legal or mental health reasons.

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Immigration deal in 'six months'

30 January 2013 Last updated at 20:22 ET

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President Obama: ''The issue here is not so much technical, as it is political''

President Barack Obama has said US immigration reform could be achieved within six months, in an interview with Spanish-language TV channel Telemundo.

The president said reform should pass in 2013 and he would put "everything" into securing a deal even sooner.

Obstacles to a deal were political rather than technical, Mr Obama added.

The comments come the day after Mr Obama backed comprehensive immigration reform, and after a group of senators unveiled a similar plan on Monday.

Correspondents say the focus on immigration reflects the growing influence of Hispanic voters.

'Clear pathway'

"I can guarantee that I will put everything I have behind it," Mr Obama told Telemundo, one of two Spanish-language networks he spoke to on Wednesday.

The president also said he would work with all politicians to achieve reform, including Florida Senator Marco Rubio, a Republican.

Continue reading the main story

By declaring that 'the time is now' for change, the president has picked the one cause where there is some possible room for agreement with Republicans"

End Quote

Mr Obama's plan, unveiled at a secondary school in Las Vegas, Nevada on Tuesday, reflects a blueprint he rolled out in 2011.

But while he applauded the Senate effort - put together by a group of four Democrats and four Republicans - the president also warned that if Congress fails to take action on immigration, the White House would write legislation of its own and insist that lawmakers vote on it.

Like the bipartisan plan, the president backed an overhaul of the existing legal immigration system, securing US borders, and offering a pathway to earned citizenship.

But the senators' proposals would allow undocumented immigrants to start the process of becoming citizens only after US borders are deemed secure, a link that did not feature in the president's plan.

In a second interview on Wednesday with Spanish-language channel Univision, Mr Obama appeared to diverge from the senators' plan on that point.

"What we don't want is to create some vague prospect in the future that somehow comprehensive immigration reform that includes a pathway to citizenship will happen, you know, manana," Mr Obama said, using the Spanish word for "tomorrow".

The so-called gang of eight have said they hope their blueprint could pass the Senate by summer.

Politicians in the Republican-controlled House of Representatives are reportedly working on their own immigration framework.

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Last Andrews sister dies aged 94

30 January 2013 Last updated at 20:59 ET

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The Andrews Sisters perform Don't Sit Under the Apple Tree - Video courtesy Madacy Entertainment

The last surviving member of The Andrews Sisters - the popular singing trio of the 1940s and 1950s - has died in California at the age of 94.

Patty Andrews's spokesman, Alan Eichler, said she died from natural causes at her Los Angeles home.

Patty was the youngest of the sisters whose hits included Boogie Woogie Bugle Boy of Company B.

The Andrews Sisters sold more than 75 million records and entertained World War II troops in Africa and Europe.

The sisters specialised in swing and played with some of the top band leaders of the era, including Glenn Miller, Benny Goodman and Tommy Dorsey.

They also appeared in 16 films, including alongside Bud Abbott and Lou Costello in Buck Privates and with Bob Hope and Bing Crosby in Road to Rio.

The sisters, who were born in Minnesota, started their careers by performing in local talent shows and later moved to California.

LaVerne Andrews died of cancer in 1967 and Maxene Andrews died in 1995 after suffering a heart attack.

In an interview in 1971, Patty said: "There were just three girls in the family. LaVerne had a very low voice. Maxene's was kind of high, and I was between. It was like God had given us voices to fit our parts."

Paying tribute to Patty, singer Bette Midler said: "When I was a kid, I only had two records and one of them was the Andrews Sisters. They were remarkable. Their sound, so pure."

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'China hackers' attack NY Times

31 January 2013 Last updated at 05:47 ET

Hackers from China have "persistently" infiltrated the New York Times for the last four months, the US paper says.

It said the attacks coincided with its report into claims that the family of Chinese Premier Wen Jiabao had amassed a multi-billion dollar fortune.

The hackers used methods which have been "associated with the Chinese military" to target the emails of the report's writer, the paper said.

China's foreign ministry dismissed the accusations as "groundless".

"To arbitrarily assert and to conclude without hard evidence that China participated in such hacking attacks is totally irresponsible," said spokesman Hong Lei.

"China is also a victim of hacking attacks. Chinese laws clearly forbid hacking attacks, and we hope relevant parties takes a responsible attitude on this issue."

Beijing has been accused by several governments, foreign companies and organisations of carrying out extensive cyber espionage for many years, seeking to gather information and to control China's image.

'China-based subterfuge'

According to the Times, the hackers first broke into their computer system in September, as the report on Mr Wen was nearing completion.

The report, which was dismissed as a "smear" by the Chinese government, said Mr Wen's relatives had amassed assets worth at least $2.7bn (£1.7bn) through business dealings. It did not accuse the Chinese premier of wrongdoing.

China is sensitive about reports on its leaders, particularly when it comes to their wealth.

Continue reading the main story

• China was widely believed to be the source of major cyber attacks between 2006 and 2011 targeting 72 organisations including the International Olympic Committee, the UN and security firms
• In 2011, Google said hackers based in Jinan province had compromised personal email accounts of hundreds of top US officials, military personnel and journalists
• South Korea blamed Chinese hackers for stealing data from 35 million accounts on a popular social network in July last year
• Chinese-based computers seized "full functional control" of computers at Nasa in 2011, the US body said
• In 2011 US media reported that Chinese-based hackers were suspected of a "significant" cyber attack on defence firm Lockheed Martin.
• Coca-cola says its systems were breached in 2009 by Beijing-backed hackers, while it was trying to buy China's Huiyuan Juice Group
• The US Pentagon said it was hacked by the Chinese military in 2007
• China says hacking is illegal under its laws and that it is a victim of such attacks itself

The New York Times said the hacking initially focussed on the computers of David Barboza, the paper's bureau chief in Shanghai who wrote the report, and one of his predecessors, Jim Yardley.

Internet security firm Mandiant, which was hired by the Times to trace the attack, followed the hackers' movements for four months, to try to establish a pattern and block them.

The hackers installed malware which enabled them to access any computer using the New York Times network, steal the password of every employee, and access 53 personal computers, mostly outside the Times offices.

They found the hackers began working for the most part at 08:00 Beijing time. They have not been able to establish how exactly the hackers broke into the system, but believe it may have been through a so-called spear-phishing attack, where an employee clicked on an email or link containing malicious code.

The security firm found that in an attempt to hide the origin of the attack, it had been routed through computers in US universities which, the paper said, "matches the subterfuge used in many other attacks that Mandiant has tracked to China".

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The BBC's Damian Grammaticus: "On the day it (NY Times) published, its computers came under attack"

The Times said experts had found that the attacks "started from the same university computers used by the Chinese military to attack United States military contractors in the past".

Mandiant's chief security officer, Richard Bejtlich, said that "if you look at each attack in isolation, you can't say, 'This is the Chinese military'," but that the similar patterns and targets of the attacks indicated a connection.

"When you see the same group steal data on Chinese dissidents and Tibetan activists, then attack an aerospace company, it starts to push you in the right direction," he said.

The paper said no personal data of staff or customers was stolen and that no attempt was made to shut down its website.

"They could have wreaked havoc on our systems," said chief information officer Marc Frons. But he said what they appeared to be looking for were "the names of people who might have provided information to Mr Barboza".

There was also no evidence that sensitive emails or files on the Wen family had been accessed, or that the intruders had sought information unrelated to the Wen family, the paper said.

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Man charged over online 'sextortion'

31 January 2013 Last updated at 06:42 ET

A man who is said to have blackmailed more than 350 women after convincing them to strip off in front of their webcams has been arrested in the US.

Prosecutors said Karen "Gary" Kazaryan, 27, had hacked into hundreds of Facebook, Skype and email accounts to obtain naked or semi-naked pictures.

It is alleged he threatened to post the nude images of victims publicly unless they removed their clothing on camera.

If convicted, he could receive a maximum jail sentence of 105 years.

A press statement from the US Department of Justice detailed the charges against Mr Kazaryan, of Glendale, California.

Mr Kazaryan is said to have gained unauthorised access to hundreds of women's accounts, changing their passwords to prevent them from getting access.

"Once he controlled the accounts, Kazaryan searched emails or other files for naked or semi-naked pictures of the victims, as well as other information, such as passwords and the names of their friends," the statement said.

"Using that information, Kazaryan posed online as women, sent instant messages to their friends, and persuaded the friends to remove their clothing so that he could view and take pictures of them."

Skype capture

US authorities said they had found about 3,000 pictures of nude or semi-nude women on Mr Kazaryan's computer.

Some of the images had been taken from online accounts, while others had been captured by Mr Kazaryan himself on Skype, they alleged.

"When the victims discovered that they were not speaking with their friends, Kazaryan often extorted them again, using the photos he had fraudulently obtained to again coerce the victims to remove their clothing on camera," the statement said.

The FBI said on some occasions Mr Kazaryan had gone through with his threat to publish the sensitive images.

He now faces 30 charges - 15 counts of computer intrusion, and 15 counts of aggravated identity theft.

The FBI described the alleged blackmail as "sextortion".

Shower trick

In recent years, hackers have concocted ever more devious ways to coerce victims, or to spy on them unawares.

Writing in the Naked Security blog, Sophos researcher Graham Cluley recounted prior incidents.

In 2011, a Southern Californian man was sentenced to six years in prison for hacking into more than 100 computers - often posing as targets' boyfriends in order to obtain pictures.

Luis Mijangos, 32, said: "To all the victims I want to say that I'm sorry. I'm ready to do the right thing and stay out of trouble."

In July last year, Trevor Harwell, 21, was given a year-long jail sentence for setting up a ruse in which he convinced women that they needed to "steam" their webcams in order to fix a fault.

The easiest way to do this, Mr Harwell's "error" message explained, was by setting up the webcam near a shower.

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Boy Scouts may end gay-member ban

28 January 2013 Last updated at 15:25 ET

The Boys Scouts of America has said it may overturn its ban on gay members and leaders, and allow local units to choose their own policies on the issue.

The policy reversal could come once the national board meets next week.

Only last year, the Boys Scouts of America (BSA) reaffirmed its ban on gay members, after a two-year review.

In 2000, the organisation went to the US Supreme Court, saying its policy of "morally straight" conduct fell within its right to freedom of expression.

Deron Smith, a BSA spokesman, said that if the change under consideration came into effect, "the Boy Scouts would not, under any circumstances, dictate a position to units, members, or parents".

Continue reading the main story

Scouting is a valuable institution, and this change will only strengthen its core principles of fairness and respect"

End Quote Herndon Graddick Gay and Lesbian Alliance Against Defamation

But Mr Smith said a change in their policy banning atheists was not being considered.

It would allow parents and sponsors to "choose a local unit which best meets the needs of their families", Mr Smith added.

In July, the Boy Scouts concluded that maintaining its long-standing policy against allowing gay members was "the best policy for the organisation".

But officials within the organisation said local chapters were urging the Boy Scouts to reconsider their decision.

At least two members of the organisation's national board, Jim Turley, chairman and chief executive of consulting firm Ernst and Young, and Randall Stephenson, head of the US telecoms company AT&T, have said they would support a change in policy.

The Gay and Lesbian Alliance Against Defamation welcomed the move.

"The Boy Scouts of America have heard from scouts, corporations and millions of Americans that discriminating against gay scouts and scout leaders is wrong," said the organisation's president, Herndon Graddick.

"Scouting is a valuable institution, and this change will only strengthen its core principles of fairness and respect."

During the 2012 presidential election, nominees from both major parties - Barack Obama and Mitt Romney - said the Boy Scouts should include gay members and leaders.

Boy Scouts of America, founded in 1910, said that at the end of 2011 it had more than one million adult members.

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Ford shares down on Europe losses

29 January 2013 Last updated at 10:36 ET

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Bob Shanks, Ford: "The industry will start to recover in 2014"

Shares in Ford have fallen 3.9% in early Wall Street trading on the rising cost of fixing its European business.

The US carmaker cautioned that 2013 losses in Europe would be $2bn, greater than its previous $1.5bn estimate.

The stock market reacted negatively, despite Ford reporting profits for the last three months of 2012 that beat expectations thanks to strong US sales.

Earnings after tax for the quarter were $1.6bn (£1bn), with underlying profits up 55% from the same period in 2011.

Revenues rose 5% overall, driven by a 13% rise in North America.

Ford boasted that its North American unit had enjoyed its most profitable fourth quarter and year since it first began recording the region's performance in 2000.

The contrasting fortunes of the number two US carmaker on either side of the Atlantic reflect the broader market trends. While total US car sales hit a post-financial-crisis high last year, 2012 sales in Europe fell more than 8% from the previous year.

Ford, like many rivals, is in the process of downsizing its European business to reflect the shrinking market, with resulting losses due to redundancy payments and the write-off of the value of factories and other assets it owns in the region.

The company said these costs were turning out to be more than expected, thanks to the strength of the euro and the higher valuation of employee pension claims. It has also marginally cut its forecast for total European sales in 2013.

To add to the firm's woes on the continent, chief financial officer Bob Shanks admitted to investors that the delayed launch of the new Mondeo in Europe would cost Ford several hundred million dollars in missed revenues.

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Cats killing 'billions of animals'

29 January 2013 Last updated at 11:25 ET By Rebecca Morelle Science reporter, BBC World Service

Cats are one of the top threats to US wildlife, killing billions of animals each year, a study suggests.

The authors estimate they are responsible for the deaths of between 1.4 and 3.7 billion birds and 6.9-20.7 billion mammals annually.

Writing in Nature Communications, the scientists said stray and feral cats were the worst offenders.

However, they added that pet cats also played a role and that owners should do more to reduce their impact.

The authors concluded that more animals are dying at the claws of cats in the United States than in road accidents, collisions with buildings or poisonings.

The domestic cat's killer instinct has been well documented on many islands around the world.

Felines accompanying their human companions have gone on to prey on the local wildlife, and they have been blamed for the global extinction of 33 species.

But their impact on mainland areas has been harder to chart.

To find out more, researchers from the Smithsonian Conservation Biology Institute (SCBI) and the US Fish and Wildlife Service carried out a review of studies that had previously looked at the predatory prowess of cats.

Continue reading the main story

Our study suggests that they are the top threat to US wildlife"

End Quote Dr Pete Marra SCBI

Their analysis revealed that the cat killings were much higher than previous studies had suggested: they found that they had killed more than four times as many birds as has been previously estimated.

Birds native to the US, such as the American Robin, were most at risk, and mice, shrews, voles, squirrels and rabbits were the mammals most likely to be killed.

Dr Pete Marra from the SCBI said: "Our study suggests that they are the top threat to US wildlife."

The team said that "un-owned" cats, which they classified as strays, feral cats and farm cats, were killing about three times as many animals as pet cats. However, they said pet cats were still killing significant numbers of animals, and that their owners should do more to limit the impact.

Dr Marra said: "We hope that the large amount of wildlife mortality indicated by our research convinces some cat owners to keep their cats indoors and that it alerts policymakers, wildlife managers and scientists to the large magnitude of wildlife mortality caused by cat predation."

A spokeswoman for the UK's animal welfare charity the RSPCA said that a properly fitted collar and bell could reduce a cat's success when hunting by at least a third.

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US housing recovery gains steam

29 January 2013 Last updated at 11:31 ET

The US housing market rebound gained steam in November, new data suggests.

House prices were 5.5% up on a year ago, according to the widely-watched Case-Shiller index, the fastest rise since the market crash began in 2006.

However, separate data suggested US consumer confidence took an unexpected knock in January, as rises in income and payroll taxes came into effect.

The Conference Board's Consumer Confidence Index fell sharply to 58.6 in the month, from 66.7 in February.

It was the lowest reading in more than a year. Analysts had been expecting a level of about 64.

"Consumers are probably pretty unhappy to notice that their payroll taxes have gone up," said David Sloan, an economist at New York-based researchers 4Cast.

The tax increases were part of a package agreed between Republicans and Democrats in Congress on the eve of the "fiscal cliff" - a far more draconian set of tax rises and spending cuts that had been due to take effect on 1 January, had no deal been reached.

Besides their diminishing take-home pay, the data suggested that US citizens were also worried that jobs were becoming harder to find.

Wall Street took the disappointing consumer confidence data in its stride on Tuesday. Stocks have enjoyed one of their most buoyant starts to a year - with the S&P 500 Index up 7% since the end of December - in large measure because of optimism about the housing market.

The Case-Shiller data adds to evidence that the market has turned the corner. Other data has shown sales of already occupied homes on the rise, while the inventory of unsold homes is back at pre-crisis lows.

Of the 20 cities tracked by the Case-Shiller index, only New York saw a moderate fall in house prices since a year earlier, down 1.2%.

Phoenix in Arizona saw a 23% jump in prices, while San Francisco and Detroit also enjoyed rises in excess of 10%.

However, the market is still far from fully recovered. Prices remain 30% below their 2006 peak, according to Case-Shiller, while home sales and house-building activity both remain heavily depressed compared with a decade ago.

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BP record $4bn penalty approved

29 January 2013 Last updated at 15:33 ET

A US court has approved the biggest criminal penalties in US history given to British oil giant BP as part of a settlement related to the fatal 2010 Deepwater Horizon disaster.

In November, BP said it would pay $4bn (£2.5bn) to the US Department of Justice and agreed to plead guilty to 14 criminal charges.

The sum included a $1.26bn fine.

The Deepwater Horizon incident was one of the worst environmental disasters in US history.

It killed 11 workers and released millions of barrels of crude into the Gulf of Mexico over 87 days.

At the latest hearing Luke Keller, a Vice President of BP America, told the court, the families of the dead, and other victims of the tragedy of the company's regret and apologised for its role in the Deepwater Horizon accident.

"We - and by that I mean the men and the women of the management of BP, its board of directors, and its many employees - are deeply sorry for the tragic loss of the 11 men who died and the others who were injured that day," said Mr Keller.

"Our guilty plea makes clear, BP understands and acknowledges its role in that tragedy, and we apologise - BP apologises - to all those injured and especially to the families of the lost loved ones.

"BP is also sorry for the harm to the environment that resulted from the spill, and we apologise to the individuals and communities who were injured."

Two BP workers have been indicted on manslaughter charges and an ex-manager charged with misleading Congress.

The oil giant has been selling assets worth billions of pounds to raise money to settle all claims. The company is expected to make a final payment of $860m into the $20bn Gulf of Mexico compensation fund by the end of the year.

The resolution with the DoJ includes a record criminal fine of $1.26bn, as well as $2.4bn to be paid to the National Fish and Wildlife Foundation and $350m to be paid to the National Academy of Sciences, over a period of five years.

"Today's guilty plea and sentencing represent a significant step forward in the Justice Department's ongoing efforts to seek justice on behalf of those affected by one of the worst environmental disasters in American history," said US Attorney General Eric Holder.

"I'm pleased to note that more than half of this landmark resolution - which totals $4bn in penalties and fines, and represents the single largest criminal resolution ever - will help to provide direct support to Gulf Coast residents as communities throughout the region continue to recover and rebuild."

BP will also pay an $525m to the Securities and Exchange Commission over a period of three years.

Other companies involved included Transocean, the owner of the rig and responsible for the safety valve known as the blowout preventer, and Halliburton, who provided cementing services.

BP is yet to reach a settlement with these firms. A civil trial that will determine negligence is due to begin in New Orleans in February.

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Double arm transplant for soldier

29 January 2013 Last updated at 16:24 ET

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'One of my goals is to hand-cycle a marathon'

The first US soldier to survive losing four limbs in Iraq has said he is looking forward to swimming and driving after having a double arm transplant.

Brendan Marrocco, 26, was injured by a roadside bomb in 2009.

He also received bone marrow from the deceased donor of his arms, a therapy intended to help his body accept the new limbs with minimal medication.

His surgeon says it will take more than a year to know how fully Mr Marrocco will be able to use the new arms.

"The maximum speed is an inch a month for nerve regeneration," Dr W P Andrew Lee, who led the 13-hour surgery last month at Johns Hopkins Hospital in Baltimore, Maryland, told a news conference on Tuesday.

Four other soldiers have lost all four limbs and survived since Mr Marrocco.

'Sky's the limit'

He said he did not know much about the donor but was "humbled by their gift".

His surgery was only the seventh double-hand or double-arm transplant ever done in the US.

On Tuesday Mr Marrocco said he was looking forward to returning to driving and swimming after the transplant.

"I just want to get the most out of these arms, and just as goals come up, knock them down and take it absolutely as far as I can," Mr Marrocco said on Tuesday.

While he has used prosthetic legs, the former soldier said he hated not having hands.

"You talk with your hands. You do everything with your hands, basically, and when you don't have that, you're kind of lost for a while," he said.

Arm and hands prosthetics are generally not as advanced as those for feet and legs.

While he continues physical therapy at Johns Hopkins and later at Walter Reed National Military Medical Center, doctors are giving Mr Marrocco a good prognosis on the ultimate ability to use his new hands.

"He's a young man with a tremendous amount of hope, and he's stubborn - stubborn in a good way," said Dr Jaimie Shores, the hospital's clinical director of hand transplantation.

"I think the sky's the limit."

Mr Marrocco had been living in a specially outfitted home in Staten Island, but it was heavily damaged as the cyclone Sandy hit the New York City borough last year.

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Kerry approved to replace Clinton

29 January 2013 Last updated at 16:51 ET

The US Senate has approved Senator John Kerry's nomination as secretary of state, after he was backed unanimously by the foreign relations committee.

His confirmation after a 94-3 vote was met with applause on the Senate floor.

President Barack Obama chose the Massachusetts Democrat to succeed Hillary Clinton, who is stepping down after four years, as his top diplomat.

A Vietnam veteran and senator since 1985, Sen Kerry was the Democratic presidential candidate in 2004.

Sen Kerry, 69, first came to national attention as part of his involvement with Vietnam Veterans Against the War.

He served on the Senate foreign relations committee himself for 28 years, and chaired it for four.

His nomination is part of Mr Obama's second-term cabinet reshuffle.

Sen Kerry was put forward after the US ambassador to the UN, Susan Rice, withdrew from consideration in December.

Republicans had fiercely criticised her response to last September's deadly attack on the US consulate in Benghazi, Libya.

Former Senator Chuck Hagel, Mr Obama's pick for secretary of defense, will face a confirmation hearing later this week.

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Obama in immigration reform push

29 January 2013 Last updated at 16:59 ET

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President Obama: ''They are woven into the fabric of our lives''

President Barack Obama has said the time has come for a sweeping overhaul of the US immigration system.

He made his case at a high school in Las Vegas, Nevada, a day after a bipartisan group of senators outlined a framework for reform.

The White House and senators envisage a path to citizenship for many of an estimated 11 million undocumented immigrants in the US.

The move reflects the growing influence of Hispanic voters.

In his opening remarks, Mr Obama said: "The time has come for common-sense, comprehensive immigration reform."

He noted that the current system was "out of date and badly broken".

Bipartisan approach?

Mr Obama's case for an immigration revamp reflects a blueprint he rolled out in 2011, though that did not go far, to the disappointment of Latino voters.

Continue reading the main story

President Obama knows a winning strategy when he sees one. He has passionately declared: "Now is the time" for immigration reform.

In doing so, he has backed the bipartisan Senate plan including making illegal immigrants pay taxes and fines, and sending them to the back of the queue before they can become American citizens. Republicans won't want him to say much more - his endorsement could make it hard for them to back any plan.

But many Republicans see this is as the last chance to convince Latino voters they are not bigots. It seems the president can't lose. He might well get agreement on the plan he wants. But if he fails, he will have stoked splits in the Republican party and virtually ensured they are blamed by Latino voters.

On Tuesday, the US president championed the proposals outlined a day earlier by a group of four Democratic and four Republican senators.

"The good news is that for the first time in many years Republicans and Democrats seem ready to tackle this problem together," he said.

But Mr Obama added that if Congress did not take action, the White House would write legislation of its own and insist that lawmakers vote on it.

Like the bipartisan plan, the president also backed an overhaul of the existing legal immigration system and securing US borders.

His 2011 blueprint also focused on a path to permanent residency and eventual citizenship, as well as making it easier for businesses to verify the legal status of workers.

After eight years, individuals would be allowed to become legal permanent residents and could eventually become citizens five years later.

Appeal to Hispanics

Under the White House and senators' plans, undocumented immigrants would be allowed to live and work in the US legally as long as they pass background checks and pay back-taxes.

Continue reading the main story

• 2006: Bipartisan bill featuring enhanced border security, a guest worker programme and a path to citizenship passes the Senate with President George Bush's endorsement but dies in the Republican-led House
• 2007: A similar bill fails in the Senate after conservatives complain citizenship provisions would reward lawbreakers
• 2010: Senate Democrats backed by President Obama push so-called Dream Act - legislation to grant citizenship to some undocumented immigrants brought to the US as children; it dies amid Republican opposition
• August 2012: President Obama uses his executive authority to create a mechanism similar to the Dream Act; Republicans complain he usurped their constitutional authority
• November 2012: Hispanic voters, driven partly by anger at Republican opposition to immigration reform, overwhelmingly back Mr Obama and the Democrats in the election

Once immigrants were able to apply for permanent residency, they would do so behind everyone else who had already applied for a green card.

But the senators' proposals would allow undocumented immigrants to start the process of becoming citizens only after US borders are deemed secure, a link that did not feature in the president's plan.

The so-called gang of eight hope their blueprint could pass the Senate by summer.

While passage of such a bill is not assured in the Senate, it faces a tougher route in the Republican-controlled House of Representatives.

But many Republicans recognise their party's hard line on immigration has become a liability, after November's election when the Democratic president won more than 70% of the Latino vote.

Arizona Senator John McCain, the former Republican presidential candidate who lost to Mr Obama in 2008, said on Monday: "The Republican Party is losing the support of our Hispanic citizens."

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US jails Iraqis in terror case

29 January 2013 Last updated at 21:28 ET

An Iraqi man has been sentenced to life in prison in the US state of Kentucky after pleading guilty to charges related to terrorism.

Mohanad Shareef Hammadi, 25, received his sentence hours after Waad Ramadan Alwan was given a lesser sentence.

Co-defendant Alwan, 30, also an Iraqi, received a 40-year sentence after he agreed to co-operate with prosecutors.

The two men were arrested in May 2011 and pleaded guilty last year to conspiring to help al-Qaeda in Iraq.

They admitted using improvised explosive devices against US soldiers in Iraq were also accused of plotting to send weapons and money to the organisation.

Hammadi, who testified during the trial, said he had been raised in poverty and that life was forever changed after the US invasion of Iraq in 2003.

But prosecutors accused him of changing his account in order to secure a shorter sentence.

Alwan could have received a sentence of up to life in prison.

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Surfer rides 'highest ever' wave

30 January 2013 Last updated at 05:53 ET

An American man has ridden what may be the highest wave ever caught by a surfer, reportedly 100ft (30m) high.

Garrett McNamara surfed the wave on Tuesday off the coast of Portugal, in the same spot where he surfed the current world-record wave of 78ft (24m) in November 2011.

Experts will now have to certify the new record.

The giant wave formed above an underwater canyon famous for being the world's biggest wave generator.

"You are just going so fast," McNamara told ABC television. "It's really, really similar to snowboarding on giant mountains.

"And you're just chattering, flying down this bumpy, bumpy mountain. Your brain is getting rattled. Your whole body is getting rattled."

He said he was relieved to have avoided a rocky section of the coast.

McNamara began surfing at 11 and turned professional six years later.

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Swell waves

Swell waves can travel thousands of miles across the Atlantic from as far west as the Caribbean.

Canyon

The Nazare Canyon, which is an underwater valley the size of the Grand Canyon, helps concentrate the waves' energy.

Shore

As the water becomes more shallow, the waves slow down while maintaining their energy, so they become bigger. The gradient of the shoreline at the head of the canyon is ideal for producing plunging breakers which surfers love.

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Canada country profile

8 November 2012 Last updated at 13:32 ET

Canada is the second largest country in the world after Russia. However, its population is only about one-fifth of Russia's.

Nearly 90% of Canadians live within 200km of the border with the United States, which means that Canada contains vast expanses of wilderness to the north.

The relationship to its powerful neighbour is a defining factor for Canada. The US and Canada are both each other's largest trading partner.

The North American Free Trade Agreement, involving Canada, the US and Mexico, has brought a trade boom for Canada. But thorny issues abound. American moves which impact on Canadian exports, in the form of tariffs on Canadian timber and increased subsidies for US farmers, have created particular tension.

Canada is also worried about pollution from US factories near the border, and about the possible impact on the environment of the exploitation of oil deposits in Alaska.

Continue reading the main story

• Politics: Canada gradually emerged as a federation of former British colonies, and the provinces retain extensive powers. It follows the British pattern of parliamentary democracy, and the UK monarch is head of state, represented by a largely ceremonial governor-general. French-speaking Quebec has wide-ranging cultural and linguistic autonomy.
• Economics: Canada punches well above its population size in economic terms, and is one of the world's top trading nations. While the service sector dominates, Canada also has vast oil reserves and is a major exporter of energy, food and minerals. Close economic integration exists with the US, but Asian markets are growing in importance.
• International: Canada often cooperates closely with the US, but does go its own way sometimes. Strong historical ties to the UK remain, while Quebec looks towards France. Canada often plays a major role in UN peacekeeping missions.

Country profiles compiled by BBC Monitoring

Canada pursues a foreign policy that is distinct from that of the US. The country has committed troops to the American-led war on terror, but does not back the US trade embargo on Cuba. Canada did not send troops to join the US-led war in Iraq.

After the 11 September 2001 attacks in the US, the challenge of securing the 9,000-km Canada-US border from possible terrorist infiltration prompted both countries to look at ways of sharing information.

Immigration

Immigration has helped to make Canada one of the world's richest nations. Challenges related to discrimination and integration are gaining increasing attention. Many recent newcomers hail from Asia. Canada's indigenous peoples make up less than two per cent of the population. The way in which provincial governments share land and natural resources with native groups is an ongoing issue.

Separatist aspirations in the predominantly French-speaking province of Quebec have been a major domestic issue. A referendum in 1995 saw advocates of an independent Quebec only narrowly defeated.

Subsequent opinion polls indicated a fall in support for independence and the pro-independence Parti Quebecois was defeated in 2003's provincial election, but regained power in 2012. In a largely symbolic move, parliament in 2006 agreed that the Quebecois should be considered a "nation" within a united Canada.

Canada has been asserting its sovereignty in the Arctic with growing vigour and has become embroiled in territorial spats with the US and Denmark. At stake is the possible bounty from previously-untapped reserves of oil and gas.

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Argo wins top Screen Actors award

28 January 2013 Last updated at 04:38 ET

Ben Affleck's Iran hostage drama Argo has won the top honour for overall cast performance at the Screen Actors Guild (SAG) Awards.

Jennifer Lawrence took the best actress award for her role in Silver Linings Playbook, while Daniel Day-Lewis was named best actor for Lincoln.

Tommy Lee Jones and Anne Hathaway won the supporting actor awards for Lincoln and Les Miserables respectively.

ITV's Downton Abbey also picked up a prize for best TV drama series cast.

Argo beat Les Miserables, The Best Exotic Marigold Hotel, Lincoln and Silver Linings Playbook to win the top award.

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British talent triumph at the 2013 Screen Actors Guild Awards

"This has nothing to do with me," said Affleck, who both directed and starred in Argo.

"It has to do with the incredible people who were in this movie."

The prize came a day after Argo won the top honour at the Producers Guild Awards, the winner of whose best film prize often goes on to win best picture at the Oscars.

Affleck's film tells the fact-based story of how US diplomats stranded in Tehran after the 1979 Islamic Revolution were spirited out of the country.

As he accepted his award for best actor on Sunday, Day-Lewis remarked that "it was an actor that murdered Abraham Lincoln".

"Somehow it is only so fitting that every now and then an actor tries to bring him back to life again," he went on.

Lawrence, who smoothed down her dress after two sections of the skirt became separated as she stood up, said when she collected her award: "I want to thank [director] David [O Russell] - you made a movie for your son, so that he wouldn't feel alone and so that he could feel understood.

Russell's comedy drama is about the relationship between a man with a bipolar disorder and a woman dealing with depression after the death of her husband.

"I think I can speak on behalf of most of us in saying you helped more than your son - you've helped so many sons and daughters," Lawrence added.

In the television categories Alec Baldwin and Tina Fey were named best comedy actor and actress for 30 Rock, giving Baldwin his seventh consecutive SAG win.

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The prize for best ensemble comedy series cast went to Modern Family.

The TV drama acting prizes were given to Bryan Cranston for Breaking Bad and Claire Danes for Homeland.

Julianne Moore's turn as former Vice-Presidential candidate Sarah Palin in Game Change earned her the award for best actress in a movie or miniseries, with Kevin Costner receiving the equivalent best actor honour for Hatfields & McCoys.

Veteran actor Dick Van Dyke, star of Mary Poppins and Diagnosis Murder, was presented with the guild's life achievement award.

After waiting on stage for a prolonged standing ovation to end, the 87-year-old said: "That does an old man a lot of good."

Other winners at the Producers Guild Awards on Saturday included Disney's Wreck-It Ralph, which won the animation category, and Searching for Sugar Man, which took the documentary prize.

Homeland also won the award for best television drama series, while Modern Family was named best comedy series for a third consecutive year.

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US ends phone unlocking amnesty

28 January 2013 Last updated at 04:45 ET

Americans now have to get permission to "unlock" their smartphone so it runs on more than one mobile network.

A 90-day time limit that made it legal to unlock phones without permission has now expired.

Many Americans unlocked their phones to avoid running up big bills when travelling outside the US.

An online petition has been started asking for unlocking without permission to be made permanently legal.

In October 2012, a change was made to the US Digital Millennium Copyright Act (DMCA) that temporarily allowed owners to unlock their smartphones without the need to ask their network beforehand.

Prior to the change, owners were typically charged a fee when they asked their operator to unlock a phone. Alternatively, users could buy unlocked versions of smartphones from manufacturers, but these handsets were typically more expensive than those locked to one network.

Users will now have to seek permission.

However, it is not clear what action will be taken against customers who ignore the law. The Electronic Frontier Foundation, which campaigns on digital issues, said in an email to Tech News Daily it should be up to the courts not the government to decide to what the DMCA applies.

In addition, many online services have sprung up that unlock phones for a small fee and some have said the change will have no effect on them.

Also, some US operators, such as Verizon, unlock all phones of a particular type they sell. AT&T is known to unlock all phones on an expired contract for its network.

So far, about 3,500 people have signed a petition on the White House website asking for unlocking to be legal all the time - 100,000 signatures are needed before the US government responds.

Unlocking a phone is distinct from a practice known as "jail-breaking" that opens up a phone so software from unofficial sources can be run on it. Jail-breaking remains legal in the US.

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No Boeing 787 battery fault found

28 January 2013 Last updated at 10:36 ET

Airline safety inspectors have found no faults with the battery used on Boeing's 787 Dreamliner, Japan's transport ministry has said.

The battery was initially considered the likely source of problems on 787s owned by two Japanese airlines.

It has raised fears that there will be no quick fix to a problem that meant all 50 787s in service were grounded.

Attention has now shifted to the electrical system that monitors battery voltage, charging and temperature.

Transport ministry official Shigeru Takano said "we have found no major quality or technical problem" with the lithium-ion batteries. Shares in GS Yuasa, which makes the batteries, jumped 5% on the news.

"We are looking into affiliated parts makers," he said. "We are looking into possibilities."

The safety investigation started after one of the 787s operated by All Nippon Airways made an emergency landing in Japan when its main battery overheated. Earlier, a battery in a Japan Airlines 787 caught fire while parked at Boston's Logan International Airport.

Continue reading the main story

• Air India: 6
• All Nippon Airways (Japan): 17
• Ethiopian Airlines: 4
• Japan Airlines: 7
• LAN Airlines (Chile): 3
• Lot Polish Airlines: 2
• Qatar Airways: 5
• United Airlines (US): 6
• Total: 50

Source: Boeing

Zafar Khan, aviation analyst at Societe Generale, said: "The obvious implication is that it may prolong the grounding.

"If it's not the battery then we are back to the drawing board. We know it's an electrical - and not a structural - issue and that will be the focus for the inspectors. But there's a lot of cabling on these aircraft."

'Fingers crossed'

Keith Hayward, head of research at the Royal Aeronautical Society, said that if the issue is no longer about replacing a faulty battery, it raised the prospect of Boeing having to do a major re-design.

"I think people had their fingers crossed that it was a battery fault... it looks more systemic and serious to me. I suspect it could be difficult to identify the cause," he said.

He added that aviation regulators will have to put the 787 through another airworthiness certification process, which itself could become a complicated and lengthy process depending on the final cause of the problem.

Two weeks ago the US Federal Aviation Administration said both batteries had leaked electrolyte fluid, and there had been smoke damage to parts of the aircraft.

The FAA said airlines must demonstrate battery safety before flights could resume, a statement that effectively meant airlines had to ground their 787s.

Boeing, which competes against Europe's Airbus, has halted 787 deliveries. Boeing has orders for more than 800 Dreamliners.

The 787 is the first airliner made mostly from lightweight composite materials, which increases an aircrafts fuel efficiency. It also relies on electronic systems rather than hydraulic or mechanical systems to a greater degree than any other airliner.

Compensation

Mr Khan said that most analysts had forecast that the 787 would be out of service for, perhaps, eight weeks at most. Beyond 10-12 weeks, and it could impact on Boeing's production line and future deliveries, he said.

"That raises questions of damages (to airlines) for late delivery and the leasing of alternative aircraft," he said.

Last week, analysts at Bernstein put the cost of fixing the Dreamliner at about $350m (£222m). Meanwhile, Jefferies estimated the likely cost at between $250m to $625m. But that was before the likely primary cause - the battery - was ruled out.

Depending on the cause of the problem, Boeing might be able to recoup any costs from suppliers. But analysts say that the longer the issue continues, the higher the risk for Boeing, suppliers, jobs, and investors.

On Wall Street, Boeing shares opened almost 1% down and are more than 4% lower since the issue came to light. "The amazing thing is that the share price has held up so well," said Mr Khan.

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Pentagon 'to boost cyber defence'

28 January 2013 Last updated at 11:23 ET

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Defence Secretary Panetta warns in November of a "cyber Pearl Harbour"

The Pentagon will dramatically increase its cyber-security staff to counter threats against US government computer networks, according to media reports.

US Cyber Command, established three years ago, could grow as much as fivefold over the next few years.

The planned expansion comes amid a series of successful attacks, including a virus that wiped data from 30,000 computers at a Saudi oil firm.

Cyber Command currently has 900 staff members, both military and civilian.

Defence officials told the Washington Post, which first reported the staff increase, that the Pentagon had approved an expansion to 4,900 troops and civilians.

Another official told Reuters news agency that the force would be expanded significantly, though details were still being worked out.

The expansion comes at a time when the US military is balancing decreased budgets and a shift towards Asia and the Pacific.

According to reports, the plan calls for creating three types of forces under the Cyber Command: protecting computer systems that involve electrical grids and other kinds of infrastructure, offensive operations overseas as well as protection of the defence department's internal systems.

Outgoing Defence Secretary Leon Panetta has previously stressed the importance of the Pentagon's cyber-security efforts.

"We've got good people that are involved in it, but, very frankly," he said in November speech at a defence think tank, "if we're going to stay on the cutting edge of what's happening with regards to the changes that are occurring, we have got to invest more in that area."

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Boy Scouts may end gay-member ban

28 January 2013 Last updated at 15:25 ET

The Boys Scouts of America has said it may overturn its ban on gay members and leaders, and allow local units to choose their own policies on the issue.

The policy reversal could come once the national board meets next week.

Only last year, the Boys Scouts of America (BSA) reaffirmed its ban on gay members, after a two-year review.

In 2000, the organisation went to the US Supreme Court, saying its policy of "morally straight" conduct fell within its right to freedom of expression.

Deron Smith, a BSA spokesman, said that if the change under consideration came into effect, "the Boy Scouts would not, under any circumstances, dictate a position to units, members, or parents".

Continue reading the main story

Scouting is a valuable institution, and this change will only strengthen its core principles of fairness and respect"

End Quote Herndon Graddick Gay and Lesbian Alliance Against Defamation

But Mr Smith said a change in their policy banning atheists was not being considered.

It would allow parents and sponsors to "choose a local unit which best meets the needs of their families", Mr Smith added.

In July, the Boy Scouts concluded that maintaining its long-standing policy against allowing gay members was "the best policy for the organisation".

But officials within the organisation said local chapters were urging the Boy Scouts to reconsider their decision.

At least two members of the organisation's national board, Jim Turley, chairman and chief executive of consulting firm Ernst and Young, and Randall Stephenson, head of the US telecoms company AT&T, have said they would support a change in policy.

The Gay and Lesbian Alliance Against Defamation welcomed the move.

"The Boy Scouts of America have heard from scouts, corporations and millions of Americans that discriminating against gay scouts and scout leaders is wrong," said the organisation's president, Herndon Graddick.

"Scouting is a valuable institution, and this change will only strengthen its core principles of fairness and respect."

During the 2012 presidential election, nominees from both major parties - Barack Obama and Mitt Romney - said the Boy Scouts should include gay members and leaders.

Boy Scouts of America, founded in 1910, said that at the end of 2011 it had more than one million adult members.

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US Treasury attacked on pay policy

28 January 2013 Last updated at 19:40 ET

The US Treasury has been criticised for approving large pay packages for bosses at firms that received bailouts during the financial crisis, a report said.

The Treasury did not "look out" for taxpayers, the special inspector general for the Troubled Asset Relief Program (Tarp) said.

Last year, all 18 requests to raise pay for executives at AIG, General Motors and Ally Financial were granted.

Nearly a quarter of executives at those firms were paid $5m (£3m) or more.

"Treasury cannot look out for taxpayers' interests if it continues to rely to a great extent on the pay proposed by companies that have historically pushed back on pay limits," Christy Romero, special inspector general said.

The report said the Treasury did not observe rules from the 2008 bailout that limited salaries.

It allowed salary increases that exceeded pay limits and that were sometimes not linked to performance, it added.

According to the guidelines, compensation should not exceed the 50th percentile of pay for executives with similar levels of seniority at financially distressed companies, Ms Romero said.

But the packages approved for 63% of executives surpassed that limit, the report said.

The report also noted that last year the Treasury had been warned it needed to change its practice.

Patricia Geoghegan, the Treasury official who approved the pay packages, disputed the report's conclusions, and said in a letter to Ms Romero the guidelines were "a benchmark".

She also noted that packages for more than half of executives at AIG respected the guidelines, as well as for almost half at General Motors and Ally Financial.

In 2008, AIG received $182bn and has repaid its bailout, General Motors accepted $49.5bn and still owes $21.5bn, while Ally Financial took $17.2bn and has $11.4bn left to repay.

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Japan eases US beef import curbs

28 January 2013 Last updated at 21:16 ET

Japan has opened the door for increased imports of beef from the US, as it eased restrictions that have been in place for almost a decade.

It will now allow the import of beef from cattle up to 30 months old.

Japan banned US beef imports in 2003 after the outbreak of mad cow disease. It restarted imports in 2006, but only from cattle less than 20 months of age.

US officials said the move was likely to boost US beef exports to Japan by "hundreds of millions" of dollars.

Ron Kirk, the US trade representative said the decision by Japan was "great news for American ranchers and beef companies".

Japan has also eased restrictions on beef imports from Canada, France and the Netherlands.

The new rules will take effect from 1 February.

Continue reading the main story

This move is an important step forward in paving the way toward greater export opportunities to one of our largest export markets"

End Quote J D Alexander National Cattlemen's Beef Association

'Important step'

Before the ban in 2003, Japan was one of the biggest markets for US beef exports.

However, the ban resulted in other beef exporting countries such as Australia increasing their presence in Japan.

Since the lifting of the ban in 2006, US firms have been trying to regain their share of the Japanese market.

They have achieved some success and US exports to Japan have been rising. However, shipments are yet to reach the levels seen before 2003.

"This move is an important step forward in paving the way toward greater export opportunities to one of our largest export markets," said J D Alexander, president of the National Cattlemen's Beef Association.

However, some analysts were sceptical about whether the easing of restrictions would have an immediate impact on US beef exports.

"Australia is not just going to give up the market share they've gained," said Lee Schulz, a livestock economist at Iowa State University.

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US senators plan immigration reform

29 January 2013 Last updated at 04:42 ET

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Senator John McCain: "What has been created is a de facto amnesty"

A bipartisan group of US senators has unveiled a plan for sweeping reform of the immigration system this year.

The framework calls for a path to citizenship for many of the 11 million undocumented immigrants in the US, while tightening border security.

The eight senators promoted their proposals a day before President Barack Obama presents his own blueprint.

Correspondents say conservatives' hard line on immigration has become an electoral liability for Republicans.

In last November's elections, President Obama, a Democrat, won more than 70% of the Hispanic vote.

'Time is right'

Senator Charles Schumer of New York told Monday's news conference he hoped the bipartisan group's blueprint could pass the Senate by late spring or summer.

Continue reading the main story

Analysis

We are witnessing the rare sight of Republicans and Democrats working together, led by high-profile senators who have a geographical stake in the issue. The business community is broadly on board and the Obama White House is extremely keen - no doubt sensing a "legacy moment".

It is, of course, far from a done deal. Translating principles into legislation will take time and require compromise. Beyond that, reform will be contingent on a critical mass of support from House Republicans, many of whom harbour suspicions of anything resembling an amnesty.

But senior Republicans are desperate to claw back Hispanic votes after losing heavily to Mr Obama in this fast-growing segment of the electorate. For party strategists, immigration reform equals a fresh start with Latino voters. It's telling that Republican standard bearers on this issue include likely contenders for a 2016 presidential run.

But many conservative lawmakers denounce a path to legalisation for undocumented immigrants as an "amnesty" for lawbreakers.

Republican Senator John McCain of Arizona told the news conference the reform would be "very difficult, but achievable".

On the undocumented migrants, he said: "We, the American people, have been too content for too long to allow individuals to mow our lawn, serve us food, clean our homes and even watch our children while not affording them any of the benefits that make our country so great.

"I think everyone here agrees that it is not beneficial for our country to have these people here hidden in the shadows. Let's create a system to bring them forward, allow them to settle their debt to society and fulfil the necessary requirements to become law-abiding citizens of this country."

Sen McCain has previously backed a pathway to citizenship, against his party line.

The other six senators are Democrats Dick Durbin of Illinois, Robert Menendez of New Jersey and Michael Bennet of Colorado; and Republicans Marco Rubio of Florida, Lindsey Graham of South Carolina and Jeff Flake of Arizona.

Continue reading the main story

Senators' immigration plan

• Path to citizenship for immigrants already in US illegally
• Increased border security and tracking of visitor and other visas
• Reducing visa backlogs and awarding resident green cards to immigrants who obtain advanced degrees in certain subjects from US universities
• A verification system to prevent firms from hiring illegal immigrants
• Allowing employers to hire immigrants if they cannot recruit US citizens, including an agricultural worker programme

In addition to a path to permanent residence and eventual citizenship, they call for measures to strengthen border security and to speed the path to citizenship for illegal immigrants who came to the US as children.

It will include a system to track departures from the US of visitors on tourist, student and other temporary visas.

Senator Graham said he hoped the plan would be strongly supported in the Senate - improving its chances of approval in the Republican-dominated House of Representatives.

He warned: "If for some reason we fail in our efforts to pass comprehensive immigration reform, I do believe it will be many years before anyone is willing to try and solve this problem."

Continue reading the main story

US immigration reform efforts

• 2006: Bipartisan bill featuring enhanced border security, a guest worker programme and a path to citizenship passes the Senate with President George Bush's endorsement but dies in the Republican-led House
• 2007: A similar bill fails in the Senate after conservatives complain citizenship provisions would reward lawbreakers
• 2010: Senate Democrats backed by President Obama push so-called Dream Act - legislation to grant citizenship to some undocumented immigrants brought to the US as children; it dies amid Republican opposition
• August 2012: President Obama uses his executive authority to create a mechanism similar to the Dream Act; Republicans complain he usurped their constitutional authority
• November 2012: Hispanic voters, driven in large part by anger at the Republican opposition to immigration reform, overwhelmingly back Mr Obama and the Democrats in the election

But Republican Senate leader Mitch McConnell said any bill on the critical issue of immigration would need to be written after wider consultation.

"This effort is too important to be written in a back room and sent to the floor with a take-it-or-leave it approach," he said in a statement.

Meanwhile, Representative Lamar Smith, formerly chairman of the House Judicial Committee, said: "When you legalise those who are in the country illegally, it costs taxpayers millions of dollars, costs American workers thousands of jobs and encourages more illegal immigration."

White House press secretary Jay Carney said of the bipartisan group's proposal: "We welcome this. We think this is positive."

President Obama is to travel on Tuesday to Las Vegas, Nevada, to lay out his own immigration-reform vision, which is expected to be similar to that of the senators.

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Ford profits on US sales rebound

29 January 2013 Last updated at 08:00 ET

Ford's profits for the last three months of 2012 have beaten market expectations after the number two US carmaker saw strong home market sales.

Earnings after tax for the quarter were $1.6bn (£1bn), up 55% from the same period in 2011, excluding the effect of a change in tax accounting that year.

Revenues rose 5% overall, driven by a 13% rise in North America.

But the firm cautioned that 2013 losses in its Europe business would be greater than previously thought, at $2bn.

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Obama praises departing Clinton

27 January 2013 Last updated at 20:56 ET

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This was the first time President Obama and Hillary Clinton have given a joint interview

US President Barack Obama has paid tribute to what he called the "extraordinary role" Hillary Clinton played as Secretary of State.

In a joint interview on CBS, Mr Obama praised Mrs Clinton's "discipline, her stamina, her thoughtfulness, her ability to project".

Both Mr Obama and Mrs Clinton sidestepped questions about whether she might run for the presidency in 2016.

Mr Obama beat Mrs Clinton to the Democratic nomination in 2008.

He then chose her as his Secretary of State, though she was initially reluctant to take the post.

Mrs Clinton is expected to step down within days and Senator John Kerry to be confirmed as her successor.

In the CBS interview, Mr Obama said Clinton would "go down as one of the finest secretaries of state we've had".

"It has been a great collaboration over the last four years," he said.

"I'm going to miss her. Wish she was sticking around. But she has logged in so many miles, I can't begrudge her wanting to take it easy for a little bit."

'Incorrigible press'

There has been much speculation that this interview has been cueing Mrs Clinton up for a run in 2016, the BBC's Jane Little reports from Washington.

There was no denial, and the possibility was left open, our correspondent says.

"The president and I care deeply about what's going to happen for our country in the future," said Mrs Clinton.

"And I don't think, you know, either he or I can make predictions about what's going to happen tomorrow or the next year."

Pressed on another Clinton on the question of a possible candidacy for Mrs Clinton in 2016, Mr Obama said:

"You guys in the press are incorrigible.

"I was literally inaugurated four days ago. And you're talking about elections four years from now."

Mrs Clinton confirmed that she has lingering issues from a recent concussion and blood clot, but said doctors had assured her of a full recovery.

The interview was recorded on Friday and broadcast on Sunday.

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Apple loses most valuable crown

25 January 2013 Last updated at 17:01 ET Continue reading the main story

Apple has lost its crown as the world's most valuable publicly traded company after its shares continued to fall.

Oil company Exxon Mobil has regained the top slot after Apple shares fell 2.4%, following a 12% drop on Thursday.

Apple, which posted disappointing iPhone sales figures on Wednesday, has seen its shares fall 37% since their record high last September.

Exxon became number one in 2005, traded places with Apple during 2011, and had been number two since early 2012.

At the close on Wall Street, Apple had a market value of $413bn (£261bn), against Exxon's of $418bn.

The tech giant has been hit by fears over its future growth, despite record profits.

Although the firm said on Wednesday that it had sold more iPhones (47.8 million) and iPads (22.9 million) in the final three months of last year than in any previous quarter, investors and analysts had expected yet more.

On Thursday, about $50bn was wiped off Apple's value after the biggest daily drop in the firm's stock in four years.

Apple is also facing fierce competition from rivals like Samsung, which accounted for one in four of all mobile phones shipped worldwide last year, according to Strategy Analytics.

Apple's share price rose sharply following a revival under Steve Jobs, who died in 2011, which came about first in computers and then the iPod music player, and was then followed by the iPhone and iPad.

Apple's shares were worth as little as $3.19 in 1997 when it faced the possibility of bankruptcy, and reached a record $702.1 on 19 September.

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CIA agent jailed for leaking name

25 January 2013 Last updated at 11:41 ET

A former CIA agent who leaked a covert officer's name to the media has been sentenced to 30 months in prison.

John Kiriakou, 48, pleaded guilty in 2012 to violating an intelligence law. No-one had been convicted under the statute in 27 years.

He admitted passing on the name of a former officer who was part of the interrogation of detainees, including alleged waterboarding.

Defence lawyers argued that Kiriakou was a whistleblower.

US District Judge Leonie Brinkema rejected that argument, and said she would have given him a longer sentence if she could.

A plea deal required the former agent be sentenced to 30 months.

The investigation began after lawyers for suspected terrorists filed a legal brief, including details not provided by the government.

The trail led back to Kiriakou, according to court records.

Prosecutors said the former officer leaked the name of a covert operative to a journalist, who subsequently disclosed it to a researcher working for the lawyer of a Guantanamo detainee.

They argued Kiriakou was merely seeking to increase his fame and public stature by trading on his insider knowledge.

A separate charge, involving an alleged disclosure to a New York Times reporter, was dropped as part of the plea deal, the Times reports.

Kiriakou was an agent with the CIA between 1990 and 2004.

In 2002, he led an operation that captured Abu Zubaydah, a suspected al-Qaeda financier, who was allegedly waterboarded 83 times.

In 2007, Kiriakou said in an interview with ABC News that waterboarding had been used to break down Zubaydah.

Kiriakou later worked as a consultant for the US news network and published a book, entitled The Reluctant Spy: My Secret Life in the CIA's War on Terror. A charge related to the book was also dropped in the plea deal.

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US new-home sales best since 2009

25 January 2013 Last updated at 11:59 ET

US new-home sales slowed in December, but that did not take the shine off the market seeing its best year since 2009.

The Commerce Department said new-home sales fell 7.3% month-on-month to a seasonally-adjusted annual rate of 369,000 units.

For the year, sales were up almost 20% to an annual rate of 367,000, but below the 700,000 level economists see as healthy for the housing industry.

Sales of previously-owned homes rose to 4.65 million, the most in five years.

Last year's rise came on the back of more stable employment data and record-low mortgages. The Commerce Department said that the average price of newly-built homes rose slightly, which may have contributed to December's fall.

"This [fall] should prove to be a temporary blip as the US housing market continues its gradual recovery," said Andrew Grantham, an economist at CIBC World Markets.

The US National Association of Homebuilders estimates that each new house built creates an average of three jobs for a year and generates about $90,000 (£57,000) in tax revenue.

It is roughly five years since the US housing market bubble started to deflate, helping to tip the economy into recession and exposing the extent of the sub-prime mortgage scandal in which many people took out loans that they had little prospect of repaying.

Strong employment levels and confidence about job prospects are crucial for a healthy housing market, economists say. The US unemployment rate, at 7.8%, is forecast to improve during 2013, but not dramatically. And GDP growth is expected to remain in low single digits.

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