Netanyahu likely clings to job in Israel election

Updated at 6:59 a.m. Eastern.

JERUSALEM Israel's parliamentary election ended Wednesday in a stunning deadlock between Prime Minister Benjamin Netanyahu's hard-line bloc and center-left rivals, forcing the badly weakened Israeli leader to scramble to cobble together a coalition of parties from both camps, despite dramatically different views on Mideast peacemaking and other polarizing issues.

Israeli media said that with 99.8 percent of votes counted on Wednesday morning, each bloc had 60 of parliament's 120 seats. Commentators said Netanyahu, who called early elections expecting easy victory, would be tapped to form the next government because the rival camp drew 12 of its 60 seats from Arab parties who've never joined a coalition.

That means the right-wing Netanyahu will have to form a coalition with moderates who support peace talks with the Palestinians, reports CBS Radio News correspondent Robert Berger. That could help Netanyahu improve ties with the U.S., but it could also mean he is only able to build an unstable coalition government that won't last.

A startlingly strong showing by a political newcomer, the centrist Yesh Atid party, turned pre-election forecasts on their heads and dealt Netanyahu his surprise setback.

Yesh Atid, or There is a Future, a party headed by political newcomer Yair Lapid, is now Netanyahu's most likely partner. Lapid has said he would only join a government committed to sweeping economic changes and a resumption of peace talks with the Palestinians.

Addressing his supporters early Wednesday, Netanyahu vowed to form as broad a coalition as possible. He said the next government would be built on principles that include reforming the contentious system of granting draft exemptions to ultra-Orthodox Jewish men and the pursuit of a "genuine peace" with the Palestinians. He did not elaborate, but the message seemed aimed at Lapid.

Shortly after the results were announced, Netanyahu called Lapid and offered to work together. "We have the opportunity to do great things together," Netanyahu was quoted as saying by Likud officials.

Netanyahu's Likud-Yisrael Beitenu alliance was set to capture about 31 of the 120 seats, significantly fewer than the 42 it held in the outgoing parliament and below the forecasts of recent polls.

With his traditional allies of nationalist and religious parties, Netanyahu could put together a shaky majority of 61 seats, results showed. But it would be virtually impossible to keep such a narrow coalition intact, though it was possible he could take an additional seat or two as numbers trickled in throughout the night.

The results capped a lackluster campaign in which peacemaking with the Palestinians, traditionally the dominant issue in Israeli politics, was pushed aside. Netanyahu portrayed himself as the only candidate capable of leading Israel at a turbulent time, while the fragmented opposition targeted him on domestic economic issues.

Israeli actor, journalist and author Yair Lapid, leader of the Yesh Atid party, speaks to supporters, Jan. 23, 2013 at his party headquarters in Tel Aviv.

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Netanyahu's goal of a broader coalition will force him to make some difficult decisions. Concessions to Lapid, for instance, will alienate his religious allies. In an interview last week with The Associated Press, Lapid said he would not be a "fig leaf" for a hard-line, extremist agenda.

Lapid's performance was the biggest surprise of the election. The one-time TV talk show host and son of a former Cabinet minister was poised to win 19 seats, giving him the second-largest faction in parliament.

Presenting himself as the defender of the middle class, Lapid vowed to take on Israel's high cost of living and to end the contentious system of subsidies and draft exemptions granted to ultra-Orthodox Jews while they pursue religious studies. The expensive system has bred widespread resentment among the Israeli mainstream.

Thanks to his strong performance, Lapid is now in a position to serve as the kingmaker of the next government. He will likely seek a senior Cabinet post and other concessions.

Yaakov Peri, a member of Lapid's party, said it would not join unless the government pledges to begin drafting the ultra-Orthodox into the military, lowers the country's high cost of living and returns to peace talks. "We have red lines. We won't cross those red lines, even if it will cost us sitting in the opposition," Peri told Channel 2 TV.

Addressing his supporters, a beaming Lapid was noncommittal, calling only for a broad government with moderates from left and right. "Israelis said no to the politics of fear and hatred," he said. "And they said no to extremism and anti-democracy."

There was even a distant possibility of Lapid and more dovish parties teaming up to block Netanyahu from forming a majority.

"It could be that this evening is the beginning for a big chance to create an alternative government to the Netanyahu government," said Shelly Yachimovich, leader of the Labor Party, which won 15 seats on a platform pledging to narrow the gaps between rich and poor.

Although that seemed unlikely, Netanyahu clearly emerged from the election in a weakened state.

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Te'o Tells Couric He Briefly Lied About Girlfriend

Manti Te'o briefly lied to the media and the public after discovering his online girlfriend did not exist and was a part of an elaborate hoax, he admitted in an exclusive interview with ABC News' Katie Couric.

The star Notre Dame linebacker, who has been hounded by the reporters since the story broke Jan. 16, told Couric in a taped interview Tuesday that he was not lying up until December. Te'o said he was duped into believing his online girlfriend, Lennay Kekua, died of cancer.

"You stuck to the script. And you knew that something was amiss, Manti," Couric said.

Te'o found out that Kekua was a hoax on Dec. 6, but on Dec. 8 he again publicly mentioned his girlfriend. The remark came as Te'o was a finalist for the Heisman Trophy, the award for the best college football player in the country. Te'o was eventually a runner-up for the trophy.

"Katie, put yourself in my situation. I, my whole world told me that she died on Sept. 12. Everybody knew that. This girl, who I committed myself to, died on Sept. 12," Te'o said.

"Now I get a phone call on Dec. 6, saying that she's alive and then I'm going be put on national TV two days later. And to ask me about the same question. You know, what would you do?" Te'o said.

Man Allegedly Behind the Manti Te?o Dead Girlfriend Hoax Watch Video

See more exclusive previews tonight on "World News With Diane Sawyer" and "Nightline." Watch Katie Couric's interview with Manti Te'o and his parents Thursday. Check your local listings or click here for online station finder.

Te'o, 21, was joined by his parents, Brian and Ottilia, in the interview.

"Now many people writing about this are calling your son a liar. They are saying he manipulated the truth, really for personal gain," Couric said to Te'o's father.

"People can speculate about what they think he is. I've known him 21 years of his life. And he's not a liar. He's a kid," Brian Te'o said with tears in his eyes.

Click here for a who's who in the Manti Te'o case.

Diane O'Meara told NBC's "Today" show Tuesday that she was used as the "face" of the Twitter account of Manti Te'o's online girlfriend without her knowledge or consent.

O'Meara said that Ronaiah Tuiasosopo used pictures of her without her knowledge in creating Kekua.

"I've never met Manti Te'o in my entire life. I've never spoke with him. I've never exchanged words with him," O'Meara said Tuesday.

The 23-year-old marketing executive went to high school in California with Tuiasosopo, but she says they're not close. Tuiasosopo called to apologize the day Deadspin.com broke the hoax story, she said.

Timeline of Manti Te'o girlfriend hoax story

In an interview with ESPN last week, Te'o said he had received a Twitter message from Tuiasosopo apologizing for the hoax.

The Hawaiian also spoke to Tuiasosopo on the phone the day the Deadspin report came out, according to ESPN.com. He found out that "two guys and a girl are responsible for the whole thing," he said.

But he did not know the identities of the other individuals involved, other than the man he says was Tuiasosopo.

Tuiasosopo, a 22-year-old resident of California, has not admitted involvement publicly. Tuiasosopo graduated from Paraclete High School in Lancaster, Calif., in 2007 and has posted dozens of videos online signing Christian songs.

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Cameron promises Britons straight choice on EU exit

LONDON (Reuters) - Prime Minister David Cameron promised on Wednesday to give Britons a referendum choice on whether to stay in the European Union or leave if he wins an election in 2015, placing a question mark over Britain's membership for years.

Cameron ended months of speculation by announcing in a speech the plan for a vote sometime between 2015 and the end of 2017, shrugging off warnings that this could imperil Britain's economic prospects and alienate its biggest trading partner.

He said the island nation, which joined the EU's precursor European Economic Community 40 years ago, did not want to retreat from the world, but public disillusionment with the EU was at "an all-time high".

"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said. His Conservative party will campaign for the 2015 election promising to renegotiate Britain's EU membership.

"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."

The speech firmly ties Cameron to an issue that was the bane of a generation of Conservative leaders. In the past, he has avoided partisan fights over Europe, the undoing of the last two Conservative prime ministers, John Major and Margaret Thatcher.

Britain would seek to claw back powers from Brussels, he said, a proposal that will be difficult to sell to other European countries. London will do an "audit" to determine which powers Brussels has that should be delegated to member states.

Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.

The response from EU partners was predictably frosty. French Foreign Minister Laurent Fabius quipped: "If Britain wants to leave Europe we will roll out the red carpet for you," echoing Cameron himself, who once used the same words to invite rich Frenchmen alienated by high taxes to move to Britain.

German Foreign Minister Guido Westerwelle said his country wanted Britain to remain a full EU member, but London could not expect to pick and choose the aspects of membership it liked.

Business leaders have warned that the prospect of years of doubt over Britain's EU membership would damage the investment climate.

"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos.

"This is a political decision. This is not an economic decision. This isn't good news. You added another reason why people will postpone investment decisions."

The speech also opens a rift with Cameron's junior coalition partners, the Liberal Democrats. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.

And even allies further afield are wary: the United States has said it wants Britain to remain inside the EU with "a strong voice".

EUROSCEPTICS THRILLED

Cameron has been pushed into taking such a strong position in part by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in opinion polls, mainly at the expense of the Conservatives.

"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.

Eurosceptics in Cameron's party were thrilled by the speech. Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".

Whether Cameron will ever hold the referendum remains as uncertain as the Conservatives' chances of winning the next election in 2015.

They trail the opposition Labour party in opinion polls, and the coalition government is grappling with a stagnating economy as it pushes through public spending cuts to reduce Britain's large budget deficit.

Cameron said he would prefer Britain, the world's sixth biggest economy, to remain inside the 27-nation EU. As long as he secured the reforms he wants, he would campaign for Britain to stay inside the EU "with all my heart and soul".

But he also made clear he believed the EU must be radically reformed. It was riskier to maintain the status quo than to change, he said.

"The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.

"WAFER THIN" CONSENT

The euro zone debt crisis was forcing the bloc to change, and Britain would fight to make sure new rules were fair to countries that didn't use the common currency, he said. Britain is the largest of the 10 EU members that do not use the euro.

Democratic consent for the EU in Britain was now "wafer thin", he said, reflecting the results of opinion polls that show a slim majority would vote to leave the bloc.

"Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union," said Cameron. "But the question mark is already there: ignoring it won't make it go away."

Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success."

"I want to be the prime minister who confronts and gets the right answer for Britain on these kind of issues," he said.

It is nearly 40 years since British voters last had a say in a referendum on Britain's membership of the European club. A 1975 vote saw just over 67 percent opt to stay inside with nearly 33 percent wanting to leave.

(Additional reporting by Paul Taylor in Davos and Alexandra Hudson in Berlin; Editing by Guy Faulconbridge and Peter Graff)

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There is scope for more opposition voices in Parliament: WP

SINGAPORE - The Workers' Party (WP) held its second rally for the Punggol East by-election on Tuesday evening.

Several WP members including party MPs Png Eng Huat and Chen Show Mao as well as NCMP Yee Jenn Jong took to the stage.

Party leaders Low Thia Khiang and Sylvia Lim as well as WP candidate for Punggol East, Lee Li Lian, were the last few to speak.

The speakers told the audience that there is scope for more opposition voices in Parliament.

Several also countered comments by the ruling People's Action Party (PAP) that it is a fallacy to believe residents can have the best of both worlds.

MP Png shared the experience of Hougang, where he said the PAP grassroots adviser has the machinery of the PAP's grassroots activists behind him.

Several speakers defended the WP's performance in Parliament, saying the party's MPs have made a difference - for example, moving a motion on the childcare sector and questioning the ethnic integration quota policy for rental flats.

The speakers added that opposition MPs too work closely with government agencies to solve residents' problems.

Ms Lee addressed a variety of issues faced by residents in Punggol East, including the state of Rivervale Mall and a lack of feeder buses and coffeeshops.

"We need more facilities and amenities in Punggol East. These were highlighted in 2011 - did PAP listen? We will push on issues that matter until we see policy changes that serve you," she said.

She also said that Singapore must take care of the elderly, to "serve them like they served us". Public transport for those above 80 should be free and more elderly-friendly, she said.

Ms Lee wrapped up the rally, saying: "I am filled with hope for Punggol East. Let's work together to create a Punggol with character."

WP chairman Sylvia Lim raised the controversial issue of the sale of computer software by PAP town councils to the Action Information Management, or AIM, a company fully owned by the PAP.

She said: "In other words, if a PAP ward is lost to an opposition party, the contract may be terminated within a short time. Let us pause for a moment and ponder: why is there such a clause in TC (town council) contracts? I have been cracking my head over this. Will the service provider be unable to perform just because the MPs have changed? Or, is the clause there - in case constituencies are lost by the PAP - to trip up the incoming opposition MPs?"

Prime Minister Lee Hsien Loong has since asked the National Development Ministry (MND) to review the transaction. He also said MND will take a broad-based approach, including re-examining the fundamental nature of town councils, with a view to ensuring high overall standards of their corporate governance.

Ms Lim said: "This episode illustrates the way Workers' Party works. We will press the government on matters of public interest using all tools available including the parliamentary process. At the same time, if the government recognises the problem and takes some action, we will want to allow it the opportunity to put things right. This also illustrates the values of political competition in furthering the public interest."

- CNA/ir

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Former Microsoft exec does some Ballmer bashing

Microsoft CEO Steve Ballmer at the Windows 8 launch in New York last October.

(Credit:
Microsoft)

There are plenty of critics of Microsoft CEO Steve Ballmer out there. Some think Ballmer's been too slow to react to market changes. Others think he's been too slow to get rid of problem employees. And then there are some who were the problem employees themselves...

Meet the latest Ballmer critic: Joachim Kempin. Kempin, for those who don't remember him, falls squarely into the group of "problem employees." Kempin definitely helped build Microsoft a software powerhouse. He is also one of the main employees whose actions landed Microsoft in hot water with the U.S. Department of Justice in the late 1990s.

Kempin left Microsoft 11 years ago. But he's back with a new book, entitled "Resolve and Fortitude: Microsoft's 'SECRET POWER BROKER' Breaks His Silence."

(If you're curious about the "secret power broker" part of the title -- or about Kempin's role in Microsoft's Department of Justice troubles -- I'd point you to an article I wrote about him in 1998, entitled "Who is Microsoft's Secret Power Broker.")

Kempin propelled the OEM division at Microsoft to become quite profitable. From my Kempin story:

In fiscal 1997, ended June 30, Microsoft's OEM group contributed $3.48 billion, or nearly one-third of the company's total net revenues of $11.36 billion. Even though Microsoft's financial gurus have warned Wall Street for years that the operating system market, at least for desktops, is close to tapped-out, the OEM division managed to grow its revenue contribution almost 40 percent, from $2.5 billion, in fiscal 1996.

Kempin and his group achieved this by pushing OEMs to license more and more Microsoft technologies and bundle them together to get better prices per copy for Windows. (OEMs don't seem to be the only ones he bullied, either, based on a hunting complaint filed against him in 2000.)

I haven't read Kempin's book (nor even an excerpt, given that the
Kindle version is available only to Amazon UK customers at this point.) But from the description, it seems, unsurprisingly, that his take of past events is different from what OEMs presented at the trial:

Find out how much resolve, fortitude, and perseverance were needed to make that part of the PC revolution come true; what strategies were employed to win the Internet browser war; how IBM was beaten; what drove Apple to the brink of disaster; and how shady politicians and hapless competitors eventually goaded the Feds to ensnare Microsoft in a web of antitrust accusations.

After Kempin left Microsoft, there was -- and continues to be -- a revolving door among OEM chiefs at the company. With Microsoft now competing head-to-head with its OEMs, it's got to be an even more thankless job than usual.

Whether you're in the pro- or anti-Ballmer camp, it's always worth questioning the motives of anyone recounting an event. (I've learned this from sources over the years.) To those with an ax to grind, everything looks like a grindstone.

This story originally appeared at ZDNet under the headline "The latest Ballmer basher: Microsoft's former OEM chief.

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U.K. grandma gets death sentence in Bali

BALI An Indonesian court sentenced a British grandmother to death on Tuesday for smuggling cocaine worth $2.5 million in her suitcase onto the resort island of Bali — even though prosecutors had sought only a 15-year sentence.

Lindsay June Sandiford, 56, wept when judges handed down the sentence and declined to speak to reporters on her way back to prison, covering her face with a floral scarf. She had claimed in court that she was forced into taking the drugs into the country by a gang that was threatening to hurt her children.

Indonesia, like many Asian countries, is very strict on drug crimes, and most of the more than 40 foreigners on its death row were convicted of drug charges.

Sandiford's lawyer said she would appeal. Appeals take several years, and the country has not carried out an execution since 2008, when 10 people were put to death.

A verdict is expected in the trial of Sandiford's alleged accomplice, British man Julian Anthony Pounder, on Wednesday. He is accused of receiving the drugs in Bali, which has a busy bar and nightclub scene where party drugs such as cocaine and ecstasy are bought and sold between foreigners. Two other British citizens and an Indian have already been convicted and sentenced to prison in connection with the bust.

In its verdict, a judge panel at the Denpasar District Court concluded that Sandiford had damaged the image of Bali as a tourism destination and weakened the government's drug prevention program.

"We found no reason to lighten her sentence," said Amser Simanjuntak, who headed the judicial panel.

Prosecutors had been seeking a 15-year prison sentence for Sandiford, who was arrested in May when customs officers at Bali's airport discovered 8.4 pounds of cocaine in the lining of her luggage.

State prosecutor Lie Putra Setiawan told reporters that the verdict was "appropriate," explaining that prosecutors had been demanding 15 years because of Sandiford's age.

Indonesia has 114 prisoners on death row, according to a March 2012 study by Australia's Lowy Institute for International Policy. Five foreigners have been executed since 1998, all for drug crimes, according to the institute.

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Obama's Inauguration: A Night to Remember

President Barack Obama dances with first lady Michelle Obama at the Commander-in-Chief Ball, Jan. 21, 2013, in Washington, DC. Pres. Obama was sworn-in for his second term as president during a public ceremonial inauguration earlier in the day. (Justin Sullivan/Getty Images)

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Israel goes to polls, set to re-elect Netanyahu

JERUSALEM (Reuters) - Israelis voted on Tuesday in an election that is expected to hand hawkish Prime Minister Benjamin Netanyahu a third term, opening the way for a showdown with Iran and bolstering opponents of Palestinian statehood.

However, Netanyahu's own Likud party, running alongside the ultra-nationalist Yisrael Beitenu group, looks set to have fewer seats than in the previous parliament, with opinion polls showing a surge in support for the far-right Jewish Home party.

Political sources said Netanyahu, concerned by his apparent fall in popularity, might approach center-left parties after the ballot in an effort to broaden his coalition and present a more moderate face to Washington and other concerned allies.

"We want Israel to succeed, we vote Likud-Beitenu ... The bigger it is, the more Israel will succeed," Netanyahu said after voting alongside his wife and two sons.

Some 5.66 million Israelis are eligible to cast a ballot, with polling stations closing at 10 p.m.. Full results are due by Wednesday morning, opening the way for coalition talks that could take several weeks.

By 2 p.m., the Israeli election committee said turnout was 38.3 percent, up from 34 percent at the same time in 2009 and the highest level since 1999. Ahead of the ballot, analysts had speculated that high turnout would benefit center-left parties that have sometimes struggled to motivate their voter base.

The lackluster election campaign failed to focus on any single issue and with a Netanyahu victory predicted by every opinion poll, the two main political blocs seemed to spend more time on internal feuding than confronting each other.

"There is a king sitting on the throne in Israel and I wanted to dethrone him, but it looks like that won't happen," said Yehudit Shimshi, a retired teacher voting in central Israel in balmy winter weather that drew out the electorate.

No Israeli party has ever secured an absolute majority, meaning that Netanyahu, who says that dealing with Iran's nuclear ambitions is his top priority, will have to bring various allies on board to control the 120-seat Knesset.

The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to seek out the surprise star of the campaign, self-made millionaire Naftali Bennett, who heads the Jewish Home party.

Bennett has ruled out any peace pact with the Palestinians and calls for the annexation of much of the occupied West Bank.

His youthful dynamism has struck a chord amongst Israelis, disillusioned after years of failed peace initiatives, and has eroded Netanyahu's support base.

The Likud has also shifted further right in recent months, with hardline candidates who reject the so-called two-state solution dominating the top of the party list.

"TRENDY PARTIES"

Surveys suggest Bennett may take up to 14 seats, many at the expense of Likud-Beitenu, which was projected to win 32 in the last round of opinion polls published on Friday - 10 less than the two parties won in 2009 when they ran separate lists.

Acknowledging the threat, Netanyahu's son Yair urged young Israelis not to abandon the old, established Likud.

"Even if there are more trendy parties, there is one party that has a proven record," he said on Tuesday.

Amongst the new parties standing for the first time in an election were Yesh Atid (There is a Future), a centrist group led by former television host Yair Lapid, seen winning 13 seats.

"All our lives we voted Likud, but today we voted for Lapid because we want a different coalition," said Ahuva Heled, 55, a retired teacher voting with her husband north of Tel Aviv.

Lapid has not ruled out joining a Netanyahu cabinet, but is pushing hard for ultra-Orthodox Jews to do military service - a demand fiercely rejected by some allies of the prime minister.

Israel's main opposition party, Labour, which is seen capturing up to 17 seats, has already ruled out a repeat of 2009, when it initially hooked up with Netanyahu, promising to promote peace negotiations with the Palestinians.

U.S.-brokered talks collapsed just a month after they started in 2010 following a row over settlement building, and have lain in ruins ever since. Netanyahu blamed the Palestinians for the failure and says his door remains open to discussions.

Palestinian President Mahmoud Abbas says he won't return to the table unless there is a halt to settlement construction.

That looks unlikely, with Netanyahu approving some 11,000 settler homes in December alone, causing further strains to his already notoriously difficult relations with U.S. President Barack Obama, who was sworn in for a second term on Monday.

IRAN THREAT

Tuesday's vote is the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.

Netanyahu has said the turbulence - which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt - shows the importance of strengthening national security.

If he wins on Tuesday, he will seek to put Iran back to the top of the global agenda. Netanyahu has said he will not let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.

Iran denies it is planning to build the bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.

The issue has barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.

One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, is the stuttering economy.

Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.

(Additional reporting by Ori Lewis, Jeffrey Heller and Tova Cohen; Editing by Alistair Lyon)

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Japan PM confirms 7 deaths in Algeria crisis

TOKYO: Japan's prime minister on Monday said seven Japanese deaths had been confirmed in the Algerian hostage crisis, the first official confirmation from Tokyo that any of its nationals had died.

"I was informed by vice foreign minister (Minoru) Kiuchi that as a result of identifications of bodies at a hospital in In Amenas, seven were confirmed to be Japanese employees of JGC," Shinzo Abe told his ministers.

The Japanese firm had earlier said it did not know the fate of 17 of its employees, ten of whom were Japanese.

The prime minister said so far it had not been possible to confirm what had happened to the other Japanese nationals who remain unaccounted for.

"There are still three more Japanese people whose safety has not been confirmed. I want all of you to do everything possible to continue gathering information and confirm their fate," he told his ministers.

"Japanese people who work at the world's frontiers, the innocent people were victimised. It is extremely painful," Abe said.

A witness at the desert gas plant told AFP he was aware of nine Japanese deaths over the extended siege, which began on Wednesday and ended in a bloodbath on Saturday when the Algerian military moved in.

Abe was speaking as his Algerian opposite number, Abdelmalek Sellal, was giving his first full account of the crisis, which brought an initial backlash against what some world leaders hinted was a too-hasty military response.

Sellal said Algiers had confirmed the deaths of 37 foreigners of eight different nationalities after the gas plant was overrun by Islamist gunmen.

He also said that the 32 militants who staged the dramatic siege, taking hundreds of workers hostage, came from northern Mali. Twenty-nine of them were killed and three arrested.

He added that some hostages had been executed with a "bullet to the head".

- AFP/fa

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Apple's first 2013 earnings to be closely watched

Apple reports its first-quarter earnings this week, and the results could not be more closely watched for signs of the company's health and future.

The story is well-known by now. Shares of Apple's stock have been on the decline, going from $702 in late September to a close at an even $500 last week. That's a 28.4 percent drop in just over four months. Positive results -- and a look ahead when Apple puts out its numbers Wednesday -- could turn that trend.

Apple forecast $52 billion in revenue and earnings of $11.75 per share when it reported its previous quarterly results in October. Wall Street's expecting the company to top that at $54.69 billion and earnings per share of $13.41 based on a poll of 47 analysts done by Thomson First Call.

Those estimates are pared down from the $13.87 per share analysts were expecting ahead of last quarter's forecast, a shortcoming that caused concerns that Apple's growth had stalled. During a conference call with analysts, Apple chalked it up to tighter margins in the creation of its newest products including the
iPad Mini, which starts at $329 and is estimated to cost the company around $198 in parts and labor, according to IHS iSuppli.

Making things a bit more complex is that Apple ended its calendar year with a bang, refreshing nearly its entire line of computers and putting out new versions of the iPhone,
iPod, and iPad. That's expected to make this quarter -- which has historically been strong due to holiday sales -- a whopper. But it's also raised concerns about the company's performance during the rest of the year, given a long history of product launches that are staggered.

By the numbers
Product-wise, Apple's story remains focused on the iPhone, the company's mega profit driver. Analysts have long been concerned that the average sale price of the device, which has been one of the highest in the business, is set to fall dramatically as the smartphone market continues to mature. That issue has been compounded with the makeup of iPhones people are buying, with many customers choosing to buy last year's model or the one from the year before, which Apple sells at a lower price and profit margin.

Wall Street expects Apple to announce iPhone sales somewhere between 43 million and 53 million. That's up from the 37.04 million iPhones it sold the same quarter the year before, and 26.9 million the previous quarter. In fact, it would be the most iPhones sold during any quarter since the product's release.

This is the first quarter to include iPad Mini sales.

(Credit:
Apple)

For Apple's iPad, which the company refreshed in late October, Wall Street's expecting between 23 million and 25 million units. That, too, is up from 14 million in the previous quarter and 15.43 million in the same quarter last year. It would also top Apple's previous sales record of 17 million iPads from its June quarter last year.

One area to watch on Wednesday is Macs. Why's that? Some analysts are anticipating a possible year-over-year decline in sales, despite product refreshes last year that would point to stronger numbers. That's not necessarily the case, Piper Jaffray analyst Gene Munster said in a note to investors last week.

"The December quarter of 2012 faces a difficult comparison from 2011 as the 2011 quarter had an additional week," Munster wrote. "As a result, we remain comfortable with our down 7 percent year over year estimate, which implies 4.8 million Macs."

Some other estimates expect Apple to beat last year's 5.2 million, including Gabelli & Co., which believes Apple sold 5.3 million computers, which would be an all-time sales record.

That kind of performance would be especially impressive given two things: One is that Apple's iMacs did not start shipping until the very tail end of November and late December for the larger model. The other is possible cannibalization by Apple's growing
tablet lineup, which doubled down with the iPad Mini during the quarter.

"We have learned over the years not to worry about cannibalization of our own product," Apple CEO Tim Cook said about just such a phenomenon during last quarter's earnings call with analysts. "It's much better for us to do that than for somebody else to do it."

Apple will report just after the market closes on Wednesday, followed by a conference call with executives at 2 p.m. PT.

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