Microsoft ups Surface production, to sell in more stores

SEATTLE (Reuters) – Microsoft Corp has stepped up manufacturing of the Surface tablet, its new device designed to counter Apple Inc‘s iPad, and will introduce it to third-party retailers this week.

The moves suggest Microsoft is seeing some demand for its first own-brand computer in the crucial holiday shopping season, although it has yet to divulge any sales figures.

“The public reaction to Surface has been exciting to see,” said Panos Panay, general manager of Microsoft’s Surface project, which forms part of the company’s Windows unit.

“We’ve increased production and are expanding the ways in which customers can interact with, experience and purchase Surface,” said Panay, but gave no details of how many extra units were being produced.

Panay did not mention names of retailers that will sell the Surface, but separately office equipment retailer Staples Inc said it would stock the tablet from Wednesday.

He said the Surface would also be on sale at retailers in Australia from mid-December, with more countries to follow in the next few months.

Since launch in late October, the Surface has only been sold by Microsoft itself, in its own brick and mortar stores in the United States and Canada and online in Australia, China, France, the UK and Germany.

The only Surface model available now – officially called Surface with Windows RT – runs a version of Windows created to work on the low-power chips designed by ARM Holdings, which dominate smartphones and tablets but are incompatible with old Windows applications.

It starts at $ 499 for the 32 gigabyte version plus $ 120 for a thin cover that doubles as a keyboard.

A larger, heavier tablet – called Surface with Windows 8 Pro – will be introduced in January, running on an Intel Corp chip that works with all Microsoft’s Windows and Office applications. Microsoft plans to price the new Surface from $ 899 for a 64 gigabyte version.

The world’s largest software company also said it would keep its chain of ‘pop-up’ holiday stores open into the new year and will convert them into permanent retail outlets or what it called “specialty store locations”.

Microsoft’s recent push into physical retail – following Apple’s great success – has resulted in 31 permanent stores plus 34 holiday ‘pop-up’ stores in the U.S. and Canada.

If Microsoft converted each of the temporary stores into permanent outlets it would have 65 stores, still well below Apple with almost 400 worldwide.

(Reporting by Bill Rigby in Seattle, Sruthi Ramakrishnan in Bangalore)

Tech News Headlines – Yahoo! News

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Lawsuit claims A&E's 'Storage Wars' show is rigged

LOS ANGELES (AP) — Some of the valuables found hidden in abandoned lockers on A&E's "Storage Wars" have been added by producers to deceive viewers, a former cast member of the show claims in a lawsuit filed Tuesday.

David Hester's suit claims producers have added a BMW Mini and newspapers chronicling Elvis Presley's death to lockers in order to build drama for the show and that his complaints about the practices led to his firing.

Hester is seeking more than $750,000 in his wrongful termination, breach of contract and unfair business practices lawsuit. A&E Television Network declined comment, citing the pending lawsuit.

"Storage Wars" follows buyers who bid for abandoned storage lockers hoping to find valuables tucked inside.

"A&E regularly plants valuable items or memorabilia," the lawsuit states. Hester's suit claims he was fired from participating in the series' fourth season after expressing concerns that manipulating the storage lockers for the sake of the show was illegal.

He claims that producers stopped adding items to his units after his initial complaints but continued the practice for other series participants. The lawsuit alleges entire units have been staged and the practice may violate a federal law intended to prevent viewers from being deceived when watching a show involving intellectual skills.

"Storage Wars" depicts buyers having only a few moments to look into an abandoned unit before deciding on whether to bid on it at auction. The lawsuit claims some of the auction footage on the show is staged.

Hester, known as "The Mogul" on the show, has been buying abandoned storage units and re-selling their contents for 26 years, according to the suit.

Nielsen Co. has ranked "Storage Wars" among cable television's top-ranked shows several times since its 2010 debut.

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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White House, Boehner quietly swap fiscal cliff offers

(AP Photo/J. Scott Applewhite)

President Barack Obama and Republican House Speaker John Boehner spoke Tuesday after privately exchanging a new round of rival proposals for keeping the economy from tumbling off the "fiscal cliff" on January 1, aides to both men told Yahoo News. The fresh discussion signaled a welcome bit of movement in negotiations that had appeared stalled for several days.

"The Speaker and POTUS (the President of the United States) spoke by telephone this evening," a White House official said on condition of anonymity. A Boehner aide said the White House had presented a new offer on tax cuts and revenue increases on Monday and that Republicans had returned with a counter-offer on Tuesday.

The White House refused to offer details about its proposal. But the Boehner aide said the new offer brought Obama's initial demand for $1.6 trillion in new tax revenues down to $1.4 trillion.

The step would still require raising tax rates on wealthier Americans, something Boehner has previously rejected. Obama has said any final deal must raise tax rates on the richest Americans.

Boehner spokesman Michael Steel confirmed that the Speaker's office had returned a counter-offer to the president but would not disclose many specifics.

"We sent the White House a counter-offer that would achieve tax and entitlement reform to solve our looming debt crisis and create more American jobs," Steel said.

Earlier Tuesday, the Speaker himself complained that Obama hadn't been specific enough about the spending cuts he was prepared to embrace as part of a broader deficit-cutting plan.

"Let's be honest, we're broke," Boehner said on the House floor. "We're still waiting for the White House to identify what spending cuts the president is willing to make as part of the 'balanced approach' that he promised the American people."

Also Tuesday, Democratic Senate Majority Leader Harry Reid warned it was unlikely that lawmakers and the White House would be able to forge a compromise in time for Christmas, raising the prospect of a high-stakes game of chicken through the end of the year.

"It's going to be extremely difficult to get it done before Christmas -- but it could be done," the Nevada Democrat told reporters. "This is not something we can do easily, at least as far as bill drafting goes. But until we hear something from the Republicans, there's nothing to draft."

Reid's comments reflected the sense of gloom across the Capitol in recent days about prospects for averting automatic across-the-board tax hikes and painful government spending cuts that, together, could plunge the economy in a new recession. Those measures will take effect January 1 unless Congress acts.

Obama had no public appearances Tuesday. His spokesman, Jay Carney, acknowledged the White House was deliberately being "incredibly opaque" about the behind-the scenes negotiations.

"If it weren't for the broader interest here, which is in trying to allow some space for the parties to see if they can achieve a compromise, you know, I'd be spilling my guts from here," Carney said.

At their weekly party lunch meetings on Capitol Hill, senators complained about the secrecy surrounding the talks.

Alabama Republican Sen. Jeff Sessions said Boehner "doesn't have my proxy" in cutting a deal with Obama.

"I've been elected, I've got a responsibility to make an independent determination of these matters," Sessions said.

Why the secrecy? Republican Senator Rob Portman of Ohio told Yahoo News "you need to build a level of trust first by not having it negotiated in the media." "You need an opportunity, particularly with the president and Republican congressional leaders, to talk about some very tough issues," he said.

Still, he said, "they can't expect those of us who going to ultimately decide what happens in the senate to vote on it without having a full understanding and input."

For Senate Budget Committee Chairman Kent Conrad of North Dakota, a Democrat who is retiring, the problem is less the back-room dealing and more the posturing for the cameras. "It's the same old lines over and over. How about just going into a room and getting a deal?" he said.

For his part, Republican Senate Minority Leader Mitch McConnell tried to steer the focus back to his party's preferred terrain: Spending cuts. He listed a series of programs he considered wasteful, citing government promotion of a videogame that allows teens "to relive prom night."

"Get this: Taxpayers also just spent $325,000 on a Robotic squirrel named RoboSquirrel," he said. "The president seems to think that if all he talks about are taxes, and that's all reporters write about, somehow the rest of us will magically forget that government spending is completely out of control, and that he himself has been insisting on balance."

The Republican push came as party insiders privately acknowledged that they've placed themselves in a significant PR bind by insisting that tax cuts for middle class earners can only be extended if they are preserved for wealthier Americans as well. Obama wants to tax rates on income above $200,000 for individuals and $250,000 for families, a position Boehner and other Republican leaders have rejected.

"We're terribly weak on this, the tax component," said one congressional Republican.

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Australian DJs apologize for royal hoax call

SYDNEY (AP) — They say they expected a hang-up and a few laughs. Instead, the Australian DJs behind a hoax phone call to the London hospital where the pregnant Duchess of Cambridge was being treated were deeply apologetic Monday as they described how their joke ended up going too far.

The phone call — in which they impersonated Queen Elizabeth II and Prince Charles — went through, and their station broadcast and even trumpeted the confidential information received. Whatever pride there had been over the hoax was obliterated by worldwide public outrage after Friday's death of Jacintha Saldanha, the first nurse they talked to.

"There's not a minute that goes by that we don't think about her family and what they must be going through," 2DayFM radio host Mel Greig told Australia's "A Current Affair," her voice shaking. "And the thought that we may have played a part in that is gut-wrenching."

Police have not disclosed the cause of Saldanha's death, but many have assumed it was related to the stress from the call. An autopsy is being held Tuesday.

Prime Minister David Cameron said at a luncheon Monday that "the suicide of this nurse, who worked incredibly hard and obviously was incredibly dedicated ... is an absolute tragedy."

His office later said Cameron's comment was not an official acknowledgment that the death was a suicide.

Greig and co-host Michael Christian spoke publicly about the prank for the first time in the televised interview. Another interview on rival show "Today Tonight" also aired Monday.

The hoax has sparked broad outrage, with the hosts receiving death threats and demands they be fired.

The radio station's owner said Greig and Christian were receiving psychological counseling to deal with the tragedy. A British lawmaker said he wished that much was being done for Saldanha's grieving family.

"They are devastated by what has happened," said Labour legislator Keith Vaz, who has visited Saldanha's husband and two children at their home in Bristol, southwest England.

"They want the facts to be established so that they can effectively grieve," Vaz said. "What is needed, clearly, is an inquiry by the hospital into how this tragic case happened."

Both DJs apologized for the hoax and cried when asked about the moment they learned that the Saldanha was dead. But neither described having reservations before the hoax tape was broadcast; they said higher-ups at the station had made the decision to air it.

"We didn't have that discussion," Greig said.

Southern Cross Austereo, the parent company of 2DayFM, released a statement Monday saying that Greig and Christian's show had been terminated and there would be a company-wide suspension of prank calls. The DJs themselves remain suspended.

Saldanha, 46, had transferred their call last week to a fellow nurse caring for the duchess, who was being treated for acute morning sickness at King Edward VII Hospital in London. That nurse said the former Kate Middleton "hasn't had any retching with me and she's been sleeping on and off."

Three days later, Saldanha was found dead at the hospital's nurses' accommodation.

The DJs said when the idea for the call came up in a team meeting, no one expected that they would actually be put through to the duchess' ward.

"We just assumed we'd get cut off at every single point and that'd be it," Christian said.

"The joke 100 percent was on us," he said. "The idea was never, 'Let's call up and get through to Kate,' or 'Let's speak to a nurse.' The joke was our accents are horrible, they don't sound anything like who they're intended to be."

Southern Cross Austereo CEO Rhys Holleran has called Saldanha's death a tragedy but defended the prank as a standard part of radio culture. He has also insisted the station had not broken any laws. He told Fairfax Radio on Monday that his station had tried at least five times to contact the London hospital to discuss the prank before it aired, but never succeeded.

When asked why the company made the attempts, Holleran replied "because we did want to speak with them about it." When pressed as to whether this meant the station had reservations about the pre-recorded prank, Holleran said only, "I think that that's a process that we follow and we have checks and balances on all those things."

The King Edward VII Hospital denied that its management had been contacted by the radio station.

"Following the hoax call, the radio station did not speak to anyone in the hospital's senior management or anyone at the company that handles our media inquiries," the hospital said in a statement.

It also announced a memorial fund to help support the nurse's family, with the hospital making the first donation.

Saldanha's children and husband, Ben Barboza, on Monday visited the hospital, which said it was offering assistance to the family.

Barboza expressed his sadness on his Facebook page with a short note "Obituary Jacintha."

"I am devastated with the tragic loss of my beloved wife Jacintha in tragic circumstances," he wrote. He said she will be laid to rest in Shirva, India.

Meanwhile, there were indications that the Duchess of Cambridge still struggled with acute morning sickness over the weekend when her husband, Prince William, cancelled a Sunday night engagement.

Palace officials said no final decision had been made on whether Kate would attend Wednesday's British premiere of "The Hobbit," where she and William are to be the guests of honor.

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Associated Press writers Jill Lawless, Gregory Katz and Danica Kirka in London contributed to this report.

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'Skyfall' launches back to top spot with $10.8M

LOS ANGELES (AP) — The James Bond blockbuster "Skyfall" has risen back to the No. 1 spot at the weekend box office, taking in $10.8 million.

That brought its domestic total to $261.4 million and its worldwide haul to a franchise record of $918 million.

The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:

1. "Skyfall," Sony, $10,780,201, 3,401 locations, $3,170 average, $261,400,281, five weeks.

2. "Rise of the Guardians," Paramount, $10,400,618, 3,639 locations, $2,858 average, $61,774,192, three weeks.

3. "The Twilight Saga: Breaking Dawn — Part 2," Summit, $9,156,265, 3,646 locations, $2,511 average, $268,691,029, four weeks.

4. "Lincoln," $8,916,813, 2,014 locations, $4,427 average, $97,137,447, five weeks.

5. "Life of Pi," Fox, $8,330,764, 2,946 locations, $2,828 average, $60,948,293, three weeks.

6. "Playing For Keeps," FilmDistrict, $5,750,288, 2,837 locations, $2,027 average, $5,750,288, one week.

7. "Wreck-It Ralph," Disney, $4,859,368, 2,746 locations, $1,770 average, $164,402,934, six weeks.

8. "Red Dawn," FilmDistrict, $4,236,105, 2,754 locations, $1,538 average, $37,240,920, three weeks.

9. "Flight," Paramount, $3,130,305, 2,431 locations, $1,288 average, $86,202,541, six weeks.

10. "Killing Them Softly," Weinstein Co., $2,806,901, 2,424 locations, $1,158 average, $11,830,638, two weeks.

11. "Silver Linings Playbook," Weinstein Co., $2,171,665, 371 locations, $5,854 average, $13,964,405, four weeks.

12. "Anna Karenina," Focus, $1,544,859, 422 locations, $3,661 average, $6,603,042, four weeks.

13. "The Collection," LD Entertainment, $1,487,655, 1,403 locations, $1,060 average, $5,455,328, two weeks.

14. "Argo," Warner Bros., $1,482,346, 944 locations, $1,570 average, $103,160,015, nine weeks.

15. "End of Watch," Open Road Films, $751,623, 1,259 locations, $597 average, $39,989,766, 12 weeks.

16. "Hitchcock," Fox Searchlight, $712,544, 181 locations, $3,937 average, $1,661,670, three weeks.

17. "Talaash," Reliance Big Pictures, $449,195, 161 locations, $2,790 average, $2,397,909, two weeks.

18. "Taken 2," Fox, $387,227, 430 locations, $901 average, $137,700,304, 10 weeks.

19. "Pitch Perfect," Universal, $305,765, 387 locations, $790 average, $63,517,408, 11 weeks.

20. "The Sessions," Fox, $218,973, 197 locations, $1,112 average, $4,948,342, eight weeks.

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Online:

http://www.hollywood.com

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Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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Obama blasts Michigan right-to-work bills

President Barack Obama at the Daimler Detroit Diesel plant in Redford, Mich., on Monday. (Jason Reed/Reuters)

President Barack Obama traveled to the Daimler Detroit Diesel plant in Redford, Mich., Monday to issue a speech on the economy, pressure Republicans in Congress to raise taxes on the nation's top earners, and highlight Daimler's new $120 million investment in the plant.

But it was the president's criticism of Michigan's right-to work legislation that stole the show for the audience of Daimler union employees.

"What we shouldn't be doing is trying to take away your rights to bargain for better wages," the president told the audience, which immediately roared with cheers, applause and whistles. "These so-called right-to-work laws, they don't have to do with economics, they have everything to do with politics." They're about "giving you the right to work for less money," he added, noting that Michigan's history shows how unions have helped "build a better America."

New state right-to-work legislation, which forbids requiring all employees who benefit from a labor contract to pay union dues, is scheduled to move through the Michigan Legislature for final action this week. Republican Gov. Rick Snyder has pledged to sign the final version.

Activists have mobilized against the legislation, which they view to be an anti-union effort, resulting in a state Capitol lockdown last Thursday.

The president's comments Monday were his first public statements on the situation in Michigan.
His appearance was pegged to Daimler's announcement of its investment in the Detroit Diesel plant, which created 115 good, new "union" jobs, the president said. "That's great for this plant, good for this community, but it's also good for American manufacturing."

The president highlighted the plant as a symbol of how American manufacturing and auto industries are rebounding and growing in the new global economy.

"The competitive balance is tipping a little," the president said.

Obama appealed to the audience, which he characterized as middle-class, on the issue of the "fiscal cliff" by warning that the average middle-class family stands to pay $2,200 more in taxes next year if the automatic spending cuts and tax increases go into effect Jan. 1.

The president said America will head into a "downward spiral" if this happens, and placed the onus once again on Republicans to resolve the crisis by agreeing to raise taxes on households making more than $250,000.

"We've got to get past this whole situation where we've manufactured crises because of politics," Obama said.

Obama met Sunday with House Republican Speaker John Boehner, the GOP's lead voice on "fiscal cliff" negotiations, but no details of that conversation have been offered.

White House spokesman Jay Carney, during Monday's briefing on Air Force One en route to Michigan, also would not reveal any information. "I won't characterize yesterday's meeting or other conversations, but the president does believe we can reach an agreement," Carney said.

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North Korean rocket launch window opens

SEOUL, South Korea (AP) — A near two-week launch window for a North Korean long-range rocket began Monday, a day after Pyongyang said it may delay liftoff. North Korea has faced mounting international pressure to abandon what critics call a cover for a banned missile test.

Scientists had been pushing forward with final preparations for the launch from a west coast site but are considering "readjusting" the timing for unspecified reasons, an unidentified spokesman for the Korean Committee for Space Technology told North Korea's state-run Korean Central News Agency early Sunday.

It was unclear whether diplomatic intervention or technical glitches were behind the potential delay. A brief KCNA dispatch said scientists and technicians were discussing whether to set new launch dates but did not elaborate.

North Korea's state media has yet to follow up on Sunday's announcement.

North Korea announced earlier this month that it would launch a three-stage rocket mounted with a satellite from the Sohae station on its northwest coast sometime between Monday and Dec. 22. Pyongyang calls it a peaceful bid to send an observation satellite into space, its second attempt this year. An April launch failed seconds after liftoff.

Word of a possible delay came just days after satellite photos indicated that snow may have slowed launch preparations, and as officials in Washington, Seoul, Tokyo, Moscow and elsewhere urged North Korea to cancel a liftoff widely seen as a violation of bans against missile and nuclear activity because the rocket shares the same technology used for firing a long-range missile.

Commercial satellite imagery taken by GeoEye on Dec. 4 and shared Friday with The Associated Press by the 38 North and North Korea Tech websites showed the Sohae site northwest of Pyongyang covered with snow. The road from the main assembly building to the launch pad showed no fresh tracks, indicating that the snowfall may have stalled the preparations.

However, analysts believed rocket preparations would have been completed on time for liftoff as early as Monday.

Some South Korean media, citing unidentified government sources in Seoul, speculated Monday that North Korea was facing unspecified technical problems. The Korean Peninsula has seen a string of snowstorms and frigid days.

A rocket can be launched during a snowfall, but lightning, strong wind and freezing temperatures could stall a liftoff, said Lee Chang-jin, an aerospace professor at Seoul's Konkuk University.

The launch announcement captured global headlines because of its timing: South Korea and Japan hold key elections this month, President Barack Obama begins his second term next month and China has just formed a new leadership. North Koreans also have begun a mourning period for late leader Kim Jong Il, who died on Dec. 17, 2011.

Last week, U.S. Secretary of State Hillary Rodham Clinton said Washington was deeply concerned about the launch, and urged foreign ministers from NATO and Russia to demand that Pyongyang cancel its plans.

North Korea has unveiled missiles designed to target U.S. soil and has tested two atomic bombs in recent years, but has not shown yet that it has mastered the technology for mounting a nuclear warhead to a long-range missile. Six-nation negotiations to offer North Korea much-needed aid in exchange for nuclear disarmament have been stalled since early 2009.

China, the North's main ally and aid provider, noted its concern after North Korea declared its latest launch plans. It acknowledged North Korea's right to develop its space program but said that had to be harmonized with restrictions including those set by the U.N. Security Council.

In Seoul, officials at the Defense Ministry, Joint Chiefs of Staff and the Foreign Ministry said they couldn't immediately determine what might be behind the possible delay.

North Korea may hold off if Washington actively engages Pyongyang in dialogue and promises to ship stalled food assistance to the country, said Koh Yu-hwan, a professor of North Korean studies at Seoul's Dongguk University.

In February, Washington agreed to provide 240,000 metric tons of food aid to North Korea in exchange for a freeze in nuclear and missile activities. The deal collapsed after North Korea attempted its April launch.

Analyst Baek Seung-joo of the South Korean state-run Korea Institute for Defense Analyses in Seoul said China must have sent a "very strong" message calling for the North to cancel the launch plans.

A successful launch means North Korea could develop an intercontinental ballistic missile capable of striking the U.S. mainland within two to three years, though the country would need many more years to acquire the technology to arm the missile with a nuclear warhead, said Chong Chol-Ho, a weapons of mass destruction expert at the private Sejong Institute near Seoul.

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Amazon’s Android Appstore explodes, downloads increase 500% over last year

Amazon’s (AMZN) Appstore is on fire. While the marketplace may not boost as many apps as Google’s (GOOG) Play Store, it has seen substantial growth in the past year. In fact, the company announced on Thursday that its Appstore has seen downloads increase more than 500% since last year. Amazon also revealed that the number of developers utilizing in-app purchasing doubled in the third quarter and that 23 of the top 25 grossing apps now incorporate the technology.

“Amazon offers the best end-to-end solution for app and game developers,” said Aaron Rubenson, Director of Amazon Appstore for Android. “Developers can use Amazon Web Services’ building blocks as the infrastructure for their games. To enhance customer engagement, they can add features like GameCircle’s Leaderboards, Achievements, Friends, and Whispersync. Amazon’s In-App Purchasing allows developers to generate additional income. Finally, since discovery can be a major challenge for app developers, we’re providing more and more ways to help developers reach customers on Amazon, Kindle Fire devices, and in our Appstore. We’re working hard to make lives easier for developers, and to give them more ways to grow their business.”

The success of Amazon’s Appstore is directly related to the success of its Kindle Fire line of tablets. Unlike most Android devices, the Kindle Fire does not include access to Google Play and instead must rely solely on Amazon’s offering for content and applications.

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