Tech shares propel Wall Street higher; Fed eyed

NEW YORK (Reuters) - Wall Street opened higher on Tuesday, lifted by gains in shares of technology companies as investors picked up some recent laggards, including Apple.

Unexpected improvement in data out of Europe set the positive tone early as investors cast around for catalysts. The U.S. stock market has entered a traditionally quiet period heading into the end of the year, with thinner trading volumes.

The Nasdaq fared better than other major indexes, lifted by a 2 percent gain in Apple Inc . The company's shares have been beaten down recently, partly due to investors' booking profit before a possible rise in capital gains taxes next year. Apple was recently up 2.5 percent at $543.18.

Elsewhere in the tech sector, Intel Corp was up 2.3 percent at $20.54, while Hewlett-Packard rose 1.1 percent to $14.31.

Investors are picking up weaker stocks in hopes of a market turn around next year, said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

"I doubt there's going to be a lot of conviction based on volume when everything is said and done at the end of the day," said Sheldon.

The Dow Jones industrial average <.dji> gained 90.31 points, or 0.69 percent, to 13,260.19. The Standard & Poor's 500 Index <.spx> rose 11.14 points, or 0.79 percent, to 1,429.69. The Nasdaq Composite Index <.ixic> climbed 33.73 points, or 1.13 percent, to 3,020.69.

Though the pace of talks in Washington to avert impending U.S. tax hikes and spending cuts quickened, senior politicians on both sides cautioned that an agreement on all the outstanding issues remained uncertain.

The lack of progress in negotiations about the "fiscal cliff" has kept investors from making aggressive bets in recent weeks, though most expect a deal will eventually be reached.

In Germany, analyst and investor sentiment rose sharply in December, entering positive territory for the first time since May, a leading survey showed. The data helped drive European shares higher.

The U.S. Treasury is selling its remaining stake in insurer American International Group Inc , bringing an end to government ownership of the company about four years after a $182 billion bailout. AIG's shares were up 3.6 percent at $34.55.

The Fed will begin its policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury bond purchases when the meeting ends on Wednesday to replace its "Operation Twist" stimulus which expires at the end of the year.

(Editing by Kenneth Barry)

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Moroccans Fear That Flickers of Democracy Are Fading

TANGIER, Morocco — Until recently, politics in Morocco involved red carpets and speeches in high Arabic that the average citizen could not understand. But on a campaign swing this fall through a working-class area of this port city, Prime Minister Abdelilah Benkirane stood on a makeshift podium in a muddy vacant lot.

He spoke without notes, kissed babies passed forward by the crowd and promised, as he has done all along, to fight corruption and return the government to the people.

“We will get stronger with the help of God and accomplish what we wanted,” he told the crowd, which roared its approval.

But more and more Moroccans are questioning his ability to do that, wondering whether Morocco’s version of the Arab Spring brought anything more than cosmetic changes to this impoverished country, which has been one of America’s most stable and staunch allies in a region marked by turmoil.

A year ago, it seemed Moroccans were giddy with the sense that they had found a gentle, negotiated answer to the popular uprisings in the streets. The country’s king, Mohammed VI, 49, defused angry protesters by volunteering to share his power. Within months, Morocco had a new Constitution.

Mr. Benkirane’s moderate Islamist party, the Justice and Development Party, won a plurality in parliamentary elections in November. Western governments heaped praise on the election process, satisfied that this strategically important country, just 12 miles south of Spain and atop a changing and uncertain continent, was settling in to a new more democratic order. (This week Secretary of State Hillary Rodham Clinton is scheduled to visit Morocco for a meeting of the Friends of Syria.)

But these days, many here are questioning whether the king and his entourage really gave up anything at all. Telquel, perhaps the country’s most influential magazine, ran a cover story this fall saying that the palace had gradually taken back its concessions: the king’s shadow cabinet was interfering at will and was even sending its own emissaries to the United States and Brussels when Moroccan interests needed tending to. Mr. Benkirane, the magazine pointed out, had publicly admitted that the king’s advisers sometimes met with government officials without consulting him.

Some also point to a quiet clamping down on political activists. In October, the United Nations said there was evidence of a recent spike in reports of torture in Morocco. About 70 protesters associated with the pro-democracy February 20 Movement are still in prison. In May, a popular rapper was sentenced to a year in jail for a song about police corruption. And six political activists testified at a hearing in September that they had been physically — and sexually — abused after being arrested for protesting in July.

In other countries rocked by Arab Spring uprisings, tensions today are being felt largely over the role of Islam in government. These issues have come up in Morocco, too. But here, the larger tensions appear to be over the power of the old guard. Many Moroccans will not criticize the king, instead focusing on the network of power and privilege that surrounds him and the corruption that they believe sucks any hope of prosperity from this country.

The problems Morocco faces are enormous. The country has invested heavily in infrastructure: superhighways are everywhere and there are plans for a high-speed train, too. But 40 percent of the population cannot read or write. Forbes has estimated the king’s fortune to be more than $2 billion. But the average income here is low, roughly half of what it was in Tunisia, where the Arab Spring first took off.

Mr. Benkirane took office showing a flare for the dramatic. He quickly slashed ministerial salaries and perquisites, and he refused to move to the prime minister’s mansion. He also took on Morocco’s notorious cronyism. To widespread amazement, his government published the names of those who had been given lucrative bus licenses. Since then, however, his efforts have foundered.

Some critics say the prime minister has been outmaneuvered at every turn. Once last spring, Mr. Benkirane seemed to lash out at the king and his entourage, suggesting that protesters could easily return to the streets. But soon after, he said the remarks had been misunderstood.

Aida Alami contributed reporting.

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Hug It Out: Public Charter and District Schools Given $25 Million to Get Along

If you need a loan, ask Bill and Melinda Gates. Or better yet, ask one of the seven cities that are splitting a new $ 25 million grant courtesy of the couple’s philanthropic foundation.

The funds are going to promote cross collaboration between charter and district schools, which have previously operated in a strict and contentious independence from one another.

The foundation announced the award this week, and the cities benefiting are Boston, Denver, Hartford (CT), New Orleans, New York City, Philadelphia and Spring Branch (TX).

How did they get so lucky? They’re among a group of 16 communities that signed the Gates-sponsored “District-Charter Collaboration Compacts” pledging for an open-source collaboration between public charter and district public schools.

Communication between these two models is unusual to say the least; they’ve had a long and illustrious history of battling each other over tax dollars, students and even building space.

But when charter schools first opened 20 years ago, their original purpose was to create an experimental educational space which would then share its best methods with public district schools. Instead, the two grew into rivals and critics of each are vehemently opposed to the other.

Among the complaints, charter schools are seen as selfishly siphoning off the most motivated students from the district while upholding a rich-poor educational divide and failing to live up to the promise of a better education. Others say its district schools that are the issue for their unionized teacher complacency and a consistent inability to keep a large margin of students from falling through the cracks.

In truth, neither system is a slam-dunk, and both are experiencing closures nationwide due to underperformance.

The goal of the District-Charter Collaboration Compacts is to restore the original relationship of the two camps, effectively establishing a regular protocol of sharing their best practices, innovations and resources.

Don Shalvey, the deputy director at teh Gates Foundation told The New York Times, “It took Microsoft and Apple 10 years to learn to talk. So it’s not surprising that it took a little bit longer for charters and other public schools. It’s pretty clear there is more common ground than battleground.”

But what will this grand collaboration yield? If all goes according to plan, students from both camps will benefit from new teacher effectiveness practices, college-ready tools and supports, and innovative instructional delivery systems.

According to the Gates Foundation, only one-third of students meet the criteria of college ready by the time they graduate. And most of the kids who don’t are often minority students from lower income areas. By creating collaborative aims with charter and district, kids from all over can have access to a wider swath of teaching frameworks and curriculums. 

Related Stories on TakePart:

• Public Dollars for Private Schools? Voices from the Voucher Debate

• School Vouchers: The Debate Heats Up Across the U.S.

• Howard Fuller: One of the Most Powerful Educators in America

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A Bay Area native, Andri Antoniades previously worked as a fashion industry journalist and medical writer.  In addition to reporting the weekend news on TakePart, she volunteers as a webeditor for locally-based nonprofits and works as a freelance feature writer for TimeOutLA.com. Email Andri | @andritweets | TakePart.com

Linux/Open Source News Headlines – Yahoo! News

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Connie Britton: Why I Adopted as a Single Mom

Mom & Babies
Celebrity Baby Blog

12/07/2012 at 04:00 PM ET

Cindy Ord/Getty

Connie Britton always knew she wanted to have a family — and she wasn’t about to let her single status stand in her way.

“I lost both of my parents within three years of each other and I kind of thought, ‘What am I waiting for?’” the Nashville star said during The View on Monday.

“The man will come and if I want to have my own kids I can do that, but I [knew] this was something I [wanted] to do.”

And after shining light on Africa’s orphan crisis, it didn’t take long for Britton, 45, to decide where she would find her first child. “I was going to do a documentary about Ethiopian orphans and spent a lot of time in orphanages there,” she shares.

“It was something I knew I always wanted to do — adopt from there.”

In 2011 the actress welcomed home Yoby – a “wonderful and life-changing experience,” Britton says — and, from the start, baby boy has been busy motivating his mama in ways she never imagined.

“It is really true, I sing to him all the time. Poor thing practically never hears me just say a straight word. I sing everything like we’re in a musical,” she jokes. “I guess he likes it. He wasn’t able to defend himself because he couldn’t speak until just recently.”

So when she was offered the role as country superstar Rayna James on the hit show Nashville, Britton didn’t think twice about belting out her voice. “When this came up, I thought to myself, ‘You know, I sound pretty good singing with Yoby. I’m sure I can pull it off.’ Not smart!” she says with a laugh.

– Anya Leon

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Smokers celebrate as Wash. legalizes marijuana

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

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

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

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

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

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

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

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

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

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

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

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

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

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

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

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

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

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

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

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

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

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

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

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

___

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

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Wall Street edges up with help from McDonald's

NEW YORK (Reuters) - Stocks were modestly higher on Monday, helped by stronger-than-expected sales from McDonald's, but gains were constrained as investors awaited any sign of progress in talks to avert the so-called fiscal cliff.

Developments in Europe also tempered sentiment after Italian Prime Minister Mario Monti said he would resign once the 2013 budget is approved. The move added to uncertainty about reducing euro zone debt and drove Italy's borrowing costs higher.

U.S. President Barack Obama met with Republican House Speaker John Boehner on Sunday to negotiate a deal for avoiding the "fiscal cliff" that is set to go into effect in the new year.

The two sides declined to provide details about the unannounced meeting. Obama is expected to make remarks at 2 p.m. (1900 GMT) from Michigan where he is touring an auto plant.

The fiscal cliff talks have kept markets on edge in the last month as investors worry the scheduled measures could send the economy into recession if politicians do not reach a deal.

While the negotiations are at the forefront of investors' minds, most have adopted the position that a deal will be reached, even if it is at the last minute, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.

"We haven't had any 'progress' the last two weeks or so, yet all in all equity markets have continued to hang tough," said Detrick. "The rhetoric from Washington is strong, but Wall Street is betting something probably will get done."

The Dow was helped by a gain in McDonald's Corp . The fast food chain's stronger-than-expected November sales marked a rebound after a decline in October. The stock was up 1 percent at $89.33.

The Dow Jones industrial average <.dji> gained 32.64 points, or 0.25 percent, to 13,187.77. The Standard & Poor's 500 Index <.spx> added 1.09 points, or 0.08 percent, to 1,419.16. The Nasdaq Composite Index <.ixic> rose 9.90 points, or 0.33 percent, to 2,987.95.

Ingersoll-Rand Plc said it will spin off its security division and announced a $2 billion share buyback, sending its shares up 2.4 percent at $49.86.

Cisco Systems boosted the Nasdaq after it laid out its midterm growth strategy on Friday. Its shares were up 2 percent at $19.72.

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Changes to Agriculture Highlight Cuba’s Problems

HAVANA — Cuba’s liveliest experiment with capitalism unfolds every night in a dirt lot on the edge of the capital, where Truman-era trucks lugging fresh produce meet up with hundreds of buyers on creaking bicycle carts clutching wads of cash.

“This place, it feeds all of Havana,” said Misael Toledo, 37, who owns three small food stores in the city. “Before, you could only buy or sell in the markets of Fidel.”

The agriculture exchange, which sprang up last year after the Cuban government legalized a broader range of small businesses, is a vivid sign of both how much the country has changed, and of all the political and practical limitations that continue to hold it back.

President Raúl Castro has made agriculture priority No. 1 in his attempt to remake the country. He used his first major presidential address in 2007 to zero in on farming, describing weeds conquering fallow fields and the need to ensure that “anyone who wants can drink a glass of milk.”

No other industry has seen as much liberalization, with a steady rollout of incentives for farmers. And Mr. Castro has been explicit about his reasoning: increasing efficiency and food production to replace imports that cost Cuba hundreds of millions of dollars a year is a matter “of national security.”

Yet at this point, by most measures, the project has failed. Because of waste, poor management, policy constraints, transportation limits, theft and other problems, overall efficiency has dropped: many Cubans are actually seeing less food at private markets. That is the case despite an increase in the number of farmers and production gains for certain items. A recent study from the University of Havana showed that market prices jumped by nearly 20 percent in 2011 alone. And food imports increased to an estimated $1.7 billion last year, up from $1.4 billion in 2006.

“It’s the first instance of Cuba’s leader not being able to get done what he said he would,” said Jorge I. Domínguez, vice provost for international affairs at Harvard, who left Cuba as a boy. “The published statistical results are really very discouraging.”

A major cause: poor transportation, as trucks are in short supply, and the aging ones that exist often break down.

In 2009, hundreds of tons of tomatoes, part of a bumper crop that year, rotted because of a lack of transportation by the government agency charged with bringing food to processing centers.

“It’s worse when it rains,” said Javier González, 27, a farmer in Artemisa Province who described often seeing crops wilt and rot because they were not picked up.

Behind him were the 33 fertile, rent-free acres he had been granted as part of a program Mr. Castro introduced in 2008 to encourage rural residents to work the land. After clearing it himself and planting a variety of crops, Mr. Gonzalez said, he was doing relatively well and earned more last year than his father, who is a doctor, did.

But Cuba’s inefficiencies gnawed at him. Smart, strong, and ambitious, he had expansion plans in mind, even as in his hand he held a wrench. He was repairing a tractor part meant to be grading land. It was broken. Again.

The 1980s Soviet model tractor he bought from another farmer was as about good as it gets in Cuba. The Cuban government maintains a monopoly on selling anything new, and there simply is not enough of anything — fertilizer, or sometimes even machetes — to go around.

Government economists are aware of the problem. “If you give people land and no resources, it doesn’t matter what happens on the land,” said Joaquin Infante of the Havana-based Cuban National Association of Economists.

But Mr. Castro has refused to allow what many farmers and experts see as an obvious solution to the shortages of transportation and equipment: Let people import supplies on their own. “It’s about control,” said Philip Peters, a Cuba analyst with the Lexington Institute, a Virginia-based research group.

Other analysts agree, noting that though the agricultural reforms have gone farther than other changes — like those that allow for self-employment — they remain constrained by politics.

“The government is not ready to let go,” said Ted Henken, a Latin American studies professor at Baruch College. “They are sending the message that they want to let go, or are trying to let go, but what they have is still a mechanism of control.”

For many farmers, that explains why land leases last for 10 years with a chance to renew, not indefinitely or the 99 years offered to foreign developers. It is also why many farmers say they will not build homes on the land they lease, despite a concession this year to allow doing so.

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MiFi With Touchscreen is a Road Warrior’s Dream

Meet the Novatel MiFi Liberate: the first mobile access point with a touchscreen, letting you configure it without connecting it to a computer.

If you’re not familiar with mobile access points, these handy gadgets allow you to hook up to the Internet via cellular networks. It’s useful, often essential, if you’re in an area that has no Wi-Fi. If you’re in range of a cellular tower, this MiFi Liberate lets you connect 10 Wi-Fi devices of any kind to the Internet.

[More from Mashable: Google Considering Wireless Network [REPORT]]

Mobile access points are ideal for frequent travelers, accommodating anyone who needs to get online wherever they are. Just the fact that you’re no longer at the mercy of hotels and their Wi-Fi price-gouging makes it worth the cost of admission.

The Novatel MiFi device we tested connects to the AT&T LTE network. That resulted in spectacular upload and download speed, rivaling that of wired broadband networks. The speed of LTE is variable — depending on how many people are using it and how close you are to one of its broadcast towers — but if you’ve been limping along with 3G connectivity, you’ll probably be astonished at the difference.

[More from Mashable: Samsung Galaxy Camera Goes on Sale Nov. 16]

How fast was this MiFi Liberate? We took multiple readings in a variety of locations. It averaged a zippy 19.70 Mbps for downloads, and a tremendous 20.66 Mbps for uploads. That kind of speed can make a big difference in your work, especially if you’re dealing with large files. In many ways, though, that’s more of a testament to the speed of AT&T’s network, rather than the alacrity of this particular device. Your mileage may vary.

Lovely Touchscreen

The best new feature of this device is its excellent 2.8-inch LCD capacitive touchscreen, the first of its kind. It responds to the slightest touch, letting you easily wander around its menus. And even while using that gorgeous screen, it still has in excess of 10 hours of battery life per charge.

That screen can come in handy in unexpected ways. For example, we were impressed with the way it indicated when a device has connected. Once it has, you can drill down farther, finding out more about that device. The screen adjusts for orientation, righting itself when you turn it upside down just like smartphones do.

If you and others are connected to this MiFi unit, it lets you share movies, photos and music via DLNA, with all of you accessing content on a microSD card inserted into the side of this versatile gadget.

It’s Expensive

All that versatility and convenience doesn’t come cheap. While the MiFi Liberate costs $ 49.99 with a two-year contract, you’ll also need to pay a monthly tariff for your LTE connectivity. Because of its blazing speed, we’re thinking you might want to spring for the 5 GB a month plan for $ 50 from AT&T. That takes the MiFi Liberate out of the value-priced category, and into one that you hope your boss will be willing to pay for.

After spending a couple of weeks with this unit, it was easy to conclude that the Novatel MiFi Liberate is the best portable access point we’ve ever tested.

If you need connectivity on the go at the fastest possible speed, this one will do the trick. And if you want to observe and adjust the unit on a bright and responsive touchscreen, look no further.

MiFi Liberate, Side View

It’s nice and small, except for that bulge, which contains a changeable lithium-ion battery.

Click here to view this gallery.

This story originally published on Mashable here.

Tech News Headlines – Yahoo! News

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Prince William on Morning Sickness Lasting All Day

By Maggie Coughlan

12/09/2012 at 11:00 AM EST

If you don't think laughter is the best medicine, just ask Prince William.

Despite a stressful week – which included a pregnancy announcement, hospital visits and more – the dad-to-be has managed to maintain his sense of humor.

The Prince, making his first public appearance since wife Kate was released from King Edward VII hospital following a four-day stay with hyperemesis gravidarum (severe morning sickness), attended the Winter Whites Gala in London on Saturday.

Michael O'Higgens, a former chairman of homeless charity Centrepoint, which the gala benefited, told reporters: "[William] said they shouldn't call it morning sickness as it's a day and all night sickness."

Inside the event, William shared his more serious perspective on his country's homeless population.

"About this time a few years ago, for one night, I gave up the warmth and comfort of my bed and tried sleeping on the streets of London. Of course, this was just one night. I was cold but safe and I knew I had a home waiting for me," he said.

"Many others have no such luck. The cold streets are the only reality they know. And yet so often their spirit shines through. What these unfortunate men, women and young people could achieve given the right opportunities is limitless. I really, really believe that," he continued.

William was originally scheduled to attend the British Military Tournament at Earl's Court in London on Sunday, but has canceled and will be spending the day "privately with the Duchess instead," a spokesman for the couple, both 30, said in a statement to PEOPLE.

"It is well known that hyperemesis gravidarum often recurs and, until further notice, to allow the Duchess a degree of privacy during her pregnancy, we do not intend to offer regular condition checks or advise of routine developments associated with it," the spokesman added.

The couple's next engagement is Wednesday December 12, when they are set to attend the royal premiere of The Hobbit movie in London's West End.

• Reporting by SIMON PERRY

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Wall Street Week Ahead: "Cliff" worries may drive tax selling

NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.

The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.

Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.

Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.

"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."

Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.

The rush to avoid higher taxes on portfolio gains could cause additional weakness.

The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.

A PAIN PILL FROM THE FED?

Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.

Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.

"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.

"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.

MORE VOLUME AND VOLATILITY

Volume could increase as investors try to shift positions before year end, some analysts said.

While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.

Volatility could pick up as well, and some of that is already being seen in Apple's stock.

"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.

Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.

"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.

While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.

To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.

Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.

"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)

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