EU leaders in Norway to pick up Nobel Peace Prize






OSLO, Norway (AP) — European Union leaders on Sunday hailed the achievements of the 27-nation bloc, but acknowledged they need more integration and authority to solve problems, including its worst financial crisis, as they arrived in Norway to pick up this year’s Nobel Peace Prize.


Conceding that the EU lacked sufficient powers to stop the devastating 1992-95 Bosnia war, European Commission President Jose Manuel Barroso said that the absence of such authority at the time is “one of the most powerful arguments for a stronger European Union.”






Barroso spoke to reporters with EU Council President Herman Van Rompuy and the president of the EU Parliament, Martin Schulz, in Oslo, where the three leaders were to receive this year’s award, granted to the European Union for fostering peace on a continent ravaged by war.


Nobel committee chairman Thorbjoern Jagland will present the prize, worth $ 1.2 million, at a ceremony in Oslo City Hall, followed by a banquet at the Grand Hotel, against a backdrop of demonstrations in this EU-skeptic country that has twice rejected joining the union.


About 20 European government leaders, including German Chancellor Angela Merkel, French President Francois Hollande and British Deputy Prime Minister Nick Clegg, will be joining the ceremonies. They will be celebrating far away from the EU’s financial woes in a prosperous, oil-rich nation of 5 million on the outskirts of Europe that voted in 1972 and 1994 in referendums to stay out of the union.


The decision to award the prize to the EU has sparked harsh criticism, including from three peace laureates — South African Archbishop Desmond Tutu, Mairead Maguire of Northern Ireland and Adolfo Perez Esquivel from Argentina — who have demanded the prize money not be paid out this year. They say the bloc contradicts the values associated with the prize because it relies on military force to ensure security.


The leader of Britain’s Independence Party, Nigel Farage, in a statement described rewarding the EU as “a ridiculous act which blows the reputation of the Nobel prize committee to smithereens.”


Hundreds of people demonstrated against this year’s prize winners in a peaceful torch-lit protest that meandered through the dark city streets to Parliament, including Tomas Magnusson from the International Peace Bureau, the 1910 prize winner.


“This is totally against the idea of Alfred Nobel who wanted disarmament,” he said, accusing the Nobel committee of being “too close to the power” elite.


Dimitris Kodelas, a Greek lawmaker from the main opposition Radical Left party, or Syriza, said a humanitarian crisis in his country and EU policies could cause major rifts in Europe. He thought it was a joke when he heard the peace prize was awarded to the EU. “It challenges even our logic and it is also insulting,” he said.


The EU is being granted the prize as it grapples with a debt crisis that has stirred deep tensions between north and south, caused soaring unemployment and sent hundreds of thousands into the streets to protest austerity measures.


It is also threatening the euro — the common currency used by 17 of its members — and even the structure of the union itself, and is fuelling extremist movements such as Golden Dawn in Greece, which opponents brand as neo-Nazi.


Barroso acknowledged that the current crisis showed the union was “not fully equipped to deal with a crisis of this magnitude.”


“We do not have all the instruments for a true and genuine economic union … so we need to complete our economic and monetary union,” he said, adding that the new measures, including on a banking and fiscal union, would be agreed on in coming weeks.


He stressed that despite the crisis all steps taken had been toward “more, not less integration.”


Van Rompuy was optimistic saying that EU would come out of the crisis stronger than before. “We want Europe to become again a symbol of hope,” he said.


The EU says it will donate the prize money to projects that help children in conflict zones and will double it with EU funds.


The European Union grew from the conviction that ever-closer economic ties would ensure century-old enemies like Germany and France never turned on each other again, starting with the creation in 1951 of the European Coal and Steel Community, declared as “a first step in the federation of Europe.”


In 60 years it has grown into a 27-nation bloc with a population of 500 million, with other nations eagerly waiting to join, even as its unity is being threatened by the financial woes.


While there have never been wars inside EU territory, the confederation has not been able to prevent European wars outside its borders. When the deadly Balkans wars erupted in the 1990s, the EU was unable by itself to stop them. It was only with the help of the United States and after over 100,000 lives were lost in Bosnia was peace eventually restored there, and several years later, to Kosovo.


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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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Bond movie “Skyfall” beats “Lincoln” at box office






(Reuters) – James Bond showed remarkable staying power as the latest installment of the spy series, “Skyfall,” captured the box office title and collected $ 11 million in its fifth week in U.S. and Canadian movie theaters, outgunning Steven Spielberg‘s “Lincoln” and “The Twilight Saga: Breaking Dawn – Part 2,” the final installment of the blockbuster vampire series.


“Skyfall,” the 23rd film in the series featuring Agent 007, also led movies at the box office when it first opened on November 2 and is already the best-selling movie in the 49-year old series. This weekend, it became the highest grossing movie in Sony Pictures‘ history with $ 918 million in ticket sales worldwide. The film distributed by Sony‘s Hollywood studio, has collected nearly $ 262 million in domestic sales, according to the movie tracking site Hollywood.com.






The animated “Rise of the Guardians” from Dreamworks Animation was second with $ 10.5 million in ticket sales. The movie, which was made for $ 145 million, opened with a disappointing $ 23.8 million when it first hit movie theaters on November 21. Since then, it has been steadily working its way toward becoming a solid family hit this season.


“Rise of the Guardians, which features Santa Claus, the Easter Bunny and other childhood favorites who join together to save the world, was one of two family movies in a season traditionally heavy in family films. The other, Disney’s “Wreck-it Ralph,” collected $ 4.9 million for seventh place.


“Breaking Dawn – Part 2,” the box office leader for the past three weeks, tallied $ 9.2 million in ticket sales. The five-movie series, released by Lions Gate Entertainment, is based on Stephenie Meyer‘s best-selling book about young vampire love and has collected more than $ 1.3 billion in overall domestic ticket sales.


“Lincoln,” which chronicles the 16th president’s successful fight to pass a constitutional amendment outlawing slavery, had total ticket sales of $ 9.1 million, according to studio estimates provided by the box office division of Hollywood.com.


“Life of Pi,” director Ang Lee’s movie about a boy who escapes a shipwreck but then shares his lifeboat with a tiger, sold $ 8.3 million in tickets to finish in fifth place. The movie, released by the Fox studio, is based on a best-selling 2001 novel by Yann Martel.


Hollywood studios shied away from scheduling major movies this weekend, steering clear of the expected blockbuster “The Hobbit: An Unexpected Journey,” which Warner Brothers will release on December 14. The movie, based on the J.R.R. Tolkien fantasy novel about wizards and dwarves, features many of the same actors from the blockbuster “The Lord of the Rings” trilogy.


The only new major release, the romantic comedy “Playing for Keeps” starring Gerard Butler and Jessica Biel, opened with a lackluster $ 6 million, which was on target with forecasts by industry experts.


(Reporting by Ronald Grover and Andrea Burzynski; Editing by Bill Trott and Jackie Frank)


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Health workers march in Spain’s capital against cuts, reforms






MADRID (Reuters) – Thousands of health workers, on strike since last month, marched on Sunday in Madrid to protest against budget cuts and plans from the Spanish capital’s regional government to privatize the management of public hospitals and medical centers.


It was the third time doctors, nurses and health workers have rallied since the local authorities put forward a plan in October to place six hospitals and dozens of medical practices under private management. The plan also calls for patients to be charged a fee of 1 euro for prescriptions.






Workers launched an indefinite strike last month against the plan, which has not been endorsed by the centre-right government of Prime Minister Mariano Rajoy. Health workers in the capital are striking Monday-Thursday each week and seeing patients only on Fridays, while also responding to emergencies.


Spain’s 17 autonomous regions control health and education policies and spending. They have all had to implement steep cuts this year as the country struggles to meet tough European Union-agreed deficit targets.


Dressed in white scrubs, the protesters shouted slogans such as “Health is not for sale” and “Health 100 percent public, no to privatizations”.


“Of course, privatization can be reversed. Actually the question is not if it can be reversed, because privatization should never have a future,” said Luis Alvarez, an unemployed man from Madrid attending the demonstration.


Belen Padilla, a doctor at Madrid’s hospital Gregorio Maranon, said one million citizens had already signed a petition rejecting the plan.


(Reporting by Reuters Television; Writing by Julien Toyer; Editing by Peter Graff)


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Behind Alcatel-Lucent’s Desperate Search for Cash






Alcatel-Lucent, the Paris-based telecom gear maker born of a 2006 transatlantic merger, has entered a desperate new phase in its struggle to stay afloat. As Bloomberg News reported on Dec. 4, it is in talks with Goldman Sachs (GS) and other banks to obtain at least €1 billion ($ 1.3 billion) in financing.


The deal would buy the company some time as it faces €2.3 billion in debt repayments over three years. It probably would have to sell off some major assets and pledge others, however—such as patents held by its venerable Bell Labs subsidiary—as collateral, the corporate equivalent of hocking the family jewels. “Alcatel-Lucent (ALU) is now using more or less last-resort financing options,” says Alexander Peterc, an analyst at Exane BNP Paribas (BNP) in London.






It would be a humbling blow—yet it may already be too late for Alcatel-Lucent to repair its fundamental problem: It is simply too inefficient and starved for cash to compete successfully against rivals.


Its weakness was further underscored this week, when Chinese gear maker ZTE (763) obtained a record $ 20 billion credit facility from China Development Bank. Already the world’s fifth-largest supplier of wireless equipment, ZTE is likely to surpass Alcatel within two years and move into third place worldwide behind China’s Huawei Technologies and Sweden’s Ericsson (ERIC).


Chief Executive Ben Verwaayen, who took over in 2008, has struggled to get the company back on track through a series of job reductions and smaller asset sales. Even so, its costs are out of whack with competitors’. Even taking into account 5,500 job cuts announced in October, revenue per employee was €49,700 ($ 65,000), at least 14 percent less than those of rivals Ericsson and Nokia Siemens Networks, according to a Bloomberg News analysis.


To reach similar levels of productivity, Alcatel-Lucent would have to shed another 10,000 workers, about 15 percent of its workforce. Verwaayen said earlier this year that such drastic cuts were “out of the question” and the French government and labor unions would fiercely oppose them.


Meanwhile, Alcatel-Lucent is burning through an average €700 million euros in cash annually and had made a profit only one year out of the past six. On Dec. 4, its already junk-rated debt was downgraded further by Moody’s Investors Service (MCO), which said it didn’t believe the company could “materially” reduce its cash burn this year.


The financing plan being negotiated with banks would involve Goldman Sachs and Credit Suisse (CS) providing a first tier of financing, with a second tier including Citigroup (C) and possibly JPMorgan Chase (JPM) and European banks such as Barclays (BCS), Bloomberg News reported. Collateral could include its patent portfolio, partly inherited from Bell Labs, which was part of Lucent Technologies at the time of the 2006 merger. Alcatel-Lucent is considering the sale of such assets as its undersea fiber-optic cable unit.


Some other gear makers are downsizing in the face of competition from China as well as weak sales in Europe. Finnish-German joint venture Nokia Siemens, for example, is cutting 23 percent of its ranks. Verwaayen told analysts last month that Alcatel-Lucent would “look at the reality of the market from a cost point of view, not assuming that Europe will come back next year.”


Cutting costs will be particularly challenging for Alcatel-Lucent, though, because it’s involved in so many businesses—a fact the company bragged about in the 2006 merger, when it said it had “the most comprehensive wireless, wireline, and services portfolio in the industry.”


With reporting by Marie Mawad, Adam Ewing, Matthew Campbell, and Beth Jinks


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Anger at Australian radio station over royal hoax












LONDON (AP) — It started out as a joke, but ended in tragedy.


The sudden death of a nurse who unwittingly accepted a prank call to a London hospital about Prince William‘s pregnant wife Kate has shocked Britain and Australia, and sparked an angry backlash Saturday from some who argue the DJs who carried out the hoax should be held responsible.












At first, the call by two irreverent Australian DJs posing as royals was picked up by news outlets around the world as an amusing anecdote about the royal pregnancy. Some complained about the invasion of privacy, the hospital was embarrassed, and the radio presenters sheepishly apologized.


But the prank took a dark twist Friday with the death of nurse Jacintha Saldanha, a 46-year-old mother of two, three days after she took the hoax call. Police have not yet determined Saldanha‘s cause of death, but people from London to Sydney have been making the assumption that she died because of stress from the call.


King Edward VII’s Hospital, where the former Kate Middleton was being treated for acute morning sickness this week, wrote a strongly-worded letter to the 2DayFM radio station’s parent company Southern Cross Austereo, condemning the “truly appalling” hoax and urging it to take steps to ensure such an incident would never happen again.


“The immediate consequence of these premeditated and ill-considered actions was the humiliation of two dedicated and caring nurses who were simply doing their job tending to their patients,” the letter read. “The longer term consequence has been reported around the world and is, frankly, tragic beyond words.”


The hospital did not comment when asked whether it believed the prank call had directly caused Saldanha’s death, only saying that the protest letter spoke for itself.


DJs Mel Grieg and Michael Christian, who apologized for the prank on Tuesday, took down their Twitter accounts after they were bombarded by thousands of abusive comments. Rhys Holleran, CEO of Southern Cross Austereo, said the pair have been offered counseling and were taken off the air indefinitely.


No one could have foreseen the tragic consequences of the prank, he stressed.


“I spoke to both presenters early this morning and it’s fair to say they’re completely shattered,” Holleran told reporters on Saturday.


“These people aren’t machines, they’re human beings,” he said. “We’re all affected by this.”


Details about Saldanha have been trickling out since the duty nurse’s body was found at apartments provided by the private hospital, which has treated a line of royals before, including Prince Philip, who was hospitalized there for a bladder infection in June.


The nurse, who was originally from India, had lived with her partner Benedict Barboza and a teenage son and daughter in Bristol, in southwestern England, for the past nine years. The hospital praised her as a “first-class nurse” who was well-respected and popular among colleagues during her four years working there.


Just before dawn on Tuesday, Saldanha was looking after her patients when the phone rang. A woman pretending to be Queen Elizabeth II asked to speak to the duchess, and, believing the caller, Saldanha transferred the call to a fellow nurse caring for the duchess, who spoke to the two DJs about Kate’s condition live on air.


During the call — which was put online and later broadcast on news channels worldwide — Grieg mimicked the Britain’s monarch’s voice and asked about the duchess’ health. She was told Kate “hasn’t had any retching with me and she’s been sleeping on and off.” Grieg and Christian, who pretended to be Prince Charles, also discussed with the nurse when they could travel to the hospital to check in on Kate.


Three days later, officers responding to reports that a woman was found unconscious discovered Saldanha, who was pronounced dead at the scene. Police didn’t release a cause of death, but said they didn’t find anything suspicious. A coroner will make a determination on the cause.


In the aftermath of Saldanha’s death, some speculated about whether the nurse was subject to pressure to resign or about to be punished for the mistake. Royal officials said Prince William and Kate were “deeply saddened,” but insisted that the palace had not complained about the hoax. King Edward VII’s Hospital also maintained that it did not reprimand Saldanha.


“We did not discipline the nurse in question. There were no plans to discipline her,” a hospital spokesman said. He declined to provide further details, and did not respond to questions about the second nurse’s condition.


The Australian Communications and Media Authority, which regulates radio broadcasting, said it has received complaints about the prank and is discussing the matter with the Sydney-based station, which yanked its Facebook page after it received thousands of angry comments.


Holleran, the radio executive, would not say who came up with the idea for the call. He only said that “these things are often done collaboratively.” He said 2DayFM would work with authorities, but was confident the station hadn’t broken any laws, noting that prank calls in radio have been happening “for decades.”


The station has a history of controversy, including a series of “Heartless Hotline” shows in which disadvantage people were offered a prize that could be taken away from them by listeners.


Saldanha’s family asked for privacy in a brief statement issued through London police.


Flowers were left outside the hospital’s nurse’s apartments, with one note reading: “Dear Jacintha, our thoughts are with you and your family. From all your fellow nurses, we bless your soul. God bless.”


Officials from St. James’s Palace have said the duchess is not yet 12 weeks pregnant. The child would be the first for her and William.


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Mick Jagger and Keith Richards to duet on “Letterman” Top 10












LOS ANGELES (TheWrap.com) – Mick Jagger and Keith Richards are no strangers to Top 10 lists, but now they’re poised to expand their knowledge of them beyond the music charts.


Rolling Stones leaders Jagger and Richards will appear on “Late Show With David Letterman” on Tuesday to deliver the Top Ten list for the night, CBS said Friday.












Though this will mark the first time that Jagger and Richards have appeared on “Letterman,” they’ve appeared on the stage of the Ed Sullivan Theater – where “Late Show” is taped – before. The Stones made numerous appearances on “The Ed Sullivan Show,” starting with their maiden performance on October 25, 1964.


The group is currently celebrating its 50th anniversary and recently released the greatest-hits anthology “GRRR!” They be in the area to play the Barclays Center in Brooklyn on Saturday, and at Newark’s Prudential Center on Thursday.


The group will also perform at the Hurricane Sandy benefit concert 12.12.12 – The Concert for Sandy Relief, which takes place Wednesday at Madison Square Garden. Other performers at the benefit will include Paul McCartney, the Who, Bruce Springsteen & the E Street Band, Billy Joel and Eric Clapton, among others.


Letterman has been rubbing shoulders with rock royalty lately – earlier this week, he was joined on his show by the surviving members of Led Zeppelin. Last weekend, Letterman and the group received Kennedy Center Honors.


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Former South Africa president Mandela admitted to the hospital












JOHANNESBURG (Reuters) – Former South African president Nelson Mandela was admitted to hospital on Saturday for medical tests, although the government said there was no cause for alarm.


A statement from President Jacob Zuma‘s office gave no details of the condition of the 94-year-old anti-apartheid leader.












Former President Mandela will receive medical attention from time to time which is consistent with his age,” the statement said.


President Zuma assures all that Madiba is doing well and there is no cause for alarm,” it added, referring to Mandela by his clan name.


Mandela, who became South Africa‘s first black president after the country’s first all-race elections in 1994, was admitted to hospital in February because of abdominal pain but released the following day after a keyhole examination showed there was nothing seriously wrong with him.


He has since spent most of his time in his ancestral home in Qunu, a village in the impoverished Eastern Cape province.


His frail health prevents him from making any public appearances in South Africa, although in the last few months he has continued to receive high-profile visitors, including former U.S. President Bill Clinton.


(Reporting by Ed Cropley; Editing by Andrew Heavens)


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Extreme Franchising: RadioShack in Afghanistan












The next time you stroll through downtown Kabul, you might be able to buy batteries from a RadioShack (RSH) outlet, the result of a new effort by the U.S. to shore up Afghanistan’s economy: selling American franchises to Afghan entrepreneurs.


The U.S. has set a 2014 deadline for troops to withdraw from Afghanistan and turn security over to Afghan military and police. That is prompting capital flight, depressing property values, and triggering other economic pain. That’s where franchising might fit—and an initial foray into the country proved promising, U.S. executives say.












“I didn’t have huge expectations going there that we would consummate an agreement, but after being there on the streets and seeing some fairly sophisticated [retail] operators in a very difficult climate, I’ve walked away with the fact that we would do business in Afghanistan,” says Martin Amschler, a RadioShack vice president who joined several American franchise executives to participate in a five-day matchmaking event in Kabul this week.


Organized by the U.S. Department of Commerce, the U.S. Agency for International Development, and the International Franchise Association (IFA), the event gave franchising brass a chance to explore the market and meet with Afghan businessmen and U.S. and Afghan officials. Outside of mostly fast-food chains on bases, there aren’t any American franchises in Afghanistan, says Beth Solomon, a vice president at the IFA who led the trip. “There is a vast culture of young [Afghans] who are very tech savvy, Internet savvy. Everyone’s got the latest Samsung or iPhone,” she says, “and there is disposable income.”


The big idea behind the effort is the “knowledge transfer” of infrastructure-building and business services expertise to locals to help rebuild the country, says Solomon, who recruited participants from RadioShack, Hertz Equipment Rental (HTZ), Tutor Doctor, and AlphaGraphics. “Franchising can be a very useful transitional economic development strategy, because the challenges of security and so forth can be minimized because it’s Afghan business leaders who are going to run these businesses,” says Solomon.


Of course, with more than one-third of Afghanistan’s 30 million people living below the poverty line, according to the CIA’s World Fact Book, much of the population can’t afford to buy an American franchise.


Bill Edwards, a seasoned franchising consultant who specializes in exporting American franchise brands such as Build-A-Bear Workshop (BBW) and Denny’s (DENN), and was on the trip for AlphaGraphics, doesn’t see a lack of Afghan investors. “There’s a lot of money there” willing to invest in American franchises, Edwards says. “There’s a need for Western business. There’s a market, there’s consumers, there’s funding, there’s capital. But there’s all the other challenges, of course.”


Apart from security, the biggest challenge would be vetting prospective buyers, says RadioShack’s Amschler. “But at the end of the day there are private contractors over there today that provide those services … and then, of course, we would have our own list of requirements in terms of net worth and what types of business experience they have,” he says.


Approved Afghan buyers would attend RadioShack University at corporate headquarters in Fort Worth and get “support on the ground” from RadioShack employees for about two weeks when a store opens, plus training visits throughout the year, Amschler says.


Among other efforts to stabilize Afghanistan’s economy, how significant could franchising be? A statement from the Commerce Department’s International Trade Administration about the conference notes “franchising has proven to be an ideal market vehicle for both employment and economic growth.” Edwards says he thinks franchising is “the model” because “it brings a business model that’s proven. It brings training, which is the thing they need; the skill set is just really not good there.”


Education is crucial to Afghanistan, says Rogelio Martinez, vice president of international franchise development at 30-employee Tutor Doctor, a “supplementary education” business that has sold about 400 franchises in 14 countries. “It’s something that everybody was talking about. [Afghan] business owners wanted to develop Afghan employees to take mid-level, senior-level management positions. Families want their kids to learn and attend good universities in Afghanistan or abroad.”


The Van Nuys (Calif.) company, which Martinez says charges franchisees about $ 57,000 to get started, provides training and an online tool that uses a Skype-like interface for tutors and students to communicate online. He expects to sell about seven franchises in Afghanistan in 2013. “They can’t be importing expats all the time; they need to have the local talent to have a sustainable model,” says Martinez.


David Riker, franchise development director for Hertz, is also optimistic about his company’s prospects in Afghanistan. Unlike fellow participants on the Kabul trip, he already has franchises on two military bases there, renting heavy machinery used in building roads and construction projects. “As the military draws down, Afghanistan is going to have to support more of its infrastructure, so that’s where the opportunity comes in,” Riker says. Depending on what kind of equipment a franchise buyer wants, getting started is “probably in the $ 3 million range.”


Aiding Afghanistan through franchising certainly won’t be quick, says Edwards. “Let’s not be too Pollyannaish. This is going to be a challenge, but it’s definitely an opportunity.”


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Protesters surge around Egypt’s presidential palace












CAIRO (Reuters) – Tens of thousands of Egyptian protesters surged around the presidential palace on Friday and the opposition rejected President Mohamed Mursi‘s call for dialogue to end a crisis that has polarized the nation and sparked deadly clashes.


The Islamist leader’s deputy said he could delay a December 15 referendum on a constitution that liberals opposed, although the concession only partly meets a list of opposition demands that include scrapping a decree that expanded Mursi‘s powers.












“The people want the downfall of the regime” and “Leave, leave,” crowds chanted after bursting through barbed wire barricades and climbing on tanks guarding the palace of Egypt‘s first freely elected president.


Their slogans echoed those used in a popular revolt that toppled Mursi’s predecessor Hosni Mubarak in February 2011.


Vice President Mahmoud Mekky said in a statement sent to local media that the president was prepared to postpone the referendum if that could be done without legal challenge.


The dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. “Tomorrow everything will be on the table,” a presidential source said of the talks.


The opposition has demanded that Mursi rescind a November 22 decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.


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


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


He said the core opposition demand was to freeze Mursi’s decree and “to reconsider the formation and structure of the constituent assembly”, not simply to postpone the referendum.


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


Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo’s al-Azhar mosque for six Mursi partisans who were among the dead. “With our blood and souls, we sacrifice to Islam,” they chanted.


“ARM-TWISTING”


In a speech late on Thursday, Mursi had refused to retract his November 22 decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.


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


Murad Ali, spokesman of the Brotherhood’s Freedom and Justice Party (FJP), said opposition reactions were sad: “What exit to this crisis do they have other than dialogue?” he asked.


Mursi’s decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt’s hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of Mubarak, a military-backed strongman.


The turmoil has exposed contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.


Caught in the middle are many of Egypt’s 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain.


“We are so tired, by God,” said Mohamed Ali, a laborer. “I did not vote for Mursi nor anyone else. I only care about bringing food to my family, but I haven’t had work for a week.”


ECONOMIC PAIN


A long political standoff will make it harder for Mursi’s government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $ 4.8-billion IMF loan that Egypt hopes to clinch this month.


U.S. President Barack Obama told Mursi on Thursday of his “deep concern” about casualties in this week’s clashes and said “dialogue should occur without preconditions”.


The upheaval in the most populous Arab nation worries the United States, which has given billions of dollars in military and other aid since Egypt made peace with Israel in 1979.


The conflict between Islamists and opponents who each believe the other is twisting the democratic rules to thwart them has poisoned the political atmosphere in Egypt.


The Muslim Brotherhood’s spokesman, Mahmoud Ghozlan, told Reuters that if the opposition shunned the dialogue “it shows that their intention is to remove Mursi from the presidency and not to cancel the decree or the constitution as they claim”.


Ayman Mohamed, 29, a protester at the palace, said Mursi should scrap the draft constitution and heed popular demands.


“He is the president of the republic. He can’t just work for the Muslim Brotherhood,” Mohamed said of the eight-decade-old Islamist movement that propelled Mursi from obscurity to power.


(Additional reporting by Omar Fahmy; Writing by Edmund Blair and Alistair Lyon; Editing by Giles Elgood)


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