Big decline in UK unemployment

12 December 2012 Last updated at 08:54 ET

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The number of people out of work fell by 82,000 between August and October, to 2.51 million, official figures have shown.

It was the biggest quarterly fall in unemployment since 2001.

The unemployment rate was 7.8%, down 0.2 percentage points from the previous three months.

The Office for National Statistics also said that the number of people claiming Jobseeker’s Allowance fell 3,000 to 1.58 million in November.

Total pay was up 1.8% compared with the same period last year.

Employment rose 40,000 to 29.6 million, which was the highest figure since records began in 1971.

“We see more people looking for work and actually finding work, so I think there’s a really strong labour market there,” Mark Hoban, minister for work and pensions, told the BBC.

“I think there’s more flexibility in the labour market, although this month we’ve seen a big increase in full-time jobs and no movement at all in the number of part-time jobs.”

David Cameron was challenged in the Commons over “stubbornly high” long-term unemployment

Employment in the public sector fell for the 12th consecutive month, dropping 24,000 to 5.7 million, which was outstripped by a 65,000 rise in private sector employment to 23.8 million.

“The main disappointment was the fact that despite the gains in employment, there is no pick-up in wage growth, which remains at 1.8%, year on year,” said James Knightley at ING.

“The fact that UK employment is rising, consumer confidence is up and anecdotal evidence of retail sales haven’t been too bad, offers some hope that the domestic situation in the UK is stabilising.”

Among the details in the ONS report:

• number in full-time employment rose 44,000


• number in part-time employment fell 4,000


• unemployed 16-to-24-year-olds fell 90,000 to 626,000, excluding people in full-time education


• the biggest regional fall in employment was in Scotland, where it fell 27,000


• the biggest regional rise was in Yorkshire and the Humber, where it rose 48,000

Leader of the opposition Ed Miliband said long-term unemployment was still “stubbornly high” and the problem was of “fundamental importance… to the country as a whole”.

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Things seem to be getting better for young people looking for work. Or at least they are not getting worse. Alas, the same cannot be said for average earnings, which have actually now fallen even further behind inflation in October, with average annual growth of just 1.3%, less than half the rate of inflation.”

End Quote

Speaking at Prime Minister’s Questions, David Cameron said that while long-term youth unemployment was down 10,000, the problem showed the importance of the government’s Work Programme. However, “clearly, there is more to do,” he said.

Surprising strength

Many analysts have questioned why unemployment has not been higher, given the general weakness of the economy.

The flexibility of the workforce has been part of that, according to Ross Walker, UK economist at RBS, who points to the large numbers of part-time jobs in previous months, small rises in average wages and the increase in self-employment.

“None of that fully explains the gap – we would still have expected the labour market to have been rather weaker than it has been,” he said.

“Maybe actually, underlying growth is a little bit better than is being reported.”

BBC chief economics correspondent Hugh Pym said the Bank of England had admitted it did not understand why the labour market was so strong.

“They’re a bit worried about low productivity – in other words, more people in work, but not producing proportionally the amount that you would expect,” he said.

Shadow employment minister Liam Byrne: “We are absolutely not out of the woods yet”

“So is that a sign of a weak economy or an economy that’s got potential to grow in the future? They really don’t know.”

The Office for Budget Responsibility, which makes economic forecasts on behalf of the economy, last week cut its forecast for the peak rate of unemployment to 8.2%, although that still suggests a considerable increase in joblessness from the current 7.8%.

Shadow work and pensions minister Liam Byrne welcomed the fall in unemployment, but stressed that there was also bad news in the figures.

“Pay packets are under intense pressure as the pace of jobs growth slows down – wages are now growing at only half the rate of prices,” he told the BBC.

“Families are under real pressure right now and what today’s figures show is that the Department for Work and Pensions’ big back-to-work programmes are frankly delivering nothing.”

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The Hobbit: Richard Armitage Talks Preparations For Playing Thorin Oakenshield

British actor Richard Armitage admitted it wasn’t a walk in the park to play a J.R.R. Tolkien character in Peter Jackson’s reimagining of “The Hobbit,” the first installment of which is on its way into theaters.

Upon touching down in New Zealand, where the trilogy was shot, the cast had a lot of character preparation to do.

PLAY IT NOW: Martin Freeman Discusses The Hobbit’s ‘Good Chemistry’ & Playing Bilbo Baggins

“We arrived in February 2011 and we went straight into a training program, which was called ‘Dwarf Bootcamp,’ which was literally boots — these huge boots. We learned how to walk, we wrestled with each other, we did archery together, we did sword fighting, hammer fighting, horse riding — everything you could possibly think of,” Richard, who plays Thorin Oakenshield in the film told Access Hollywood at the film’s junket.

In addition, the cast, which includes his former “Cold Feet” co-star James Nesbitt as Bofur, found ways to get to know each other better off set.

VIEW THE PHOTOS: The Hobbit: An Unexpected Journey — New York City Premiere

“We went round to each other’s houses and we cooked food together, we went to the pub and got drunk together, so there was an incredibly great bonding time between the dwarves,” he said.

Richard had plenty of experience sword fighting and horse riding in the BBC America series “Robin Hood,” but it was something else that came in handy during the long days on set.

“I’d done a number of shows where I’d had to use sword fighting and I’d also done horse riding. I’d also pulled guns out of my pocket. That was less useful,” he laughed, likely referring to his recent role in the PBS-import series “MI-5,” where he played a British spy. “But, yeah, you draw on everything. I’d worked at the Royal Shakespeare Company, so the vocal work was really useful to kind of pull that from there. I’d worked in a circus, there were… all sorts of things that were really useful, but the one thing that I do have — for lack of talent — is stamina and that’s the one thing I think everybody needed on this job.”

VIEW THE PHOTOS: Meet ‘The Hobbit’ Cast!

An imagination was useful also, but Richard said what turned out on the big screen was still wilder – and more beautiful – than he dreamed of.

“So many moments… Actually, apart from the eagles — which every single time I’ve seen this film absolutely blows my mind and I can barely keep the tears back and [it has] nothing to do with the pathos of the scene, just that feeling of flight moves me — is the throne of Aragorn, in the beginning of the prologue,” he told Access of the moment that moved him most. “When it got to [filming] that scene, I walked on and… it was just a green cross on the floor with a tiny green chair… [But in the film], they just made this incredible, almost space aged, sort of suspended seat in the middle of this stalagmite. It just blows my mind when I see that.”

VIEW THE PHOTOS: The Brit Pack: Hot Shots Of Stars From The UK!

“The Hobbit: An Unexpected Journey” hits theaters on December 14, 2012, followed by “The Hobbit: The Desolation of Smaug,” on December 13, 2013 and “The Hobbit: There and Back Again,” on July 18, 2014.

– Jolie Lash

Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Obama election tweet most repeated but Olympics tops on Twitter

(Reuters) – An election victory tweet from President Barack Obama — “Four more years” with a picture of him hugging his wife — was the most retweeted ever, but the U.S. election was topped by the Olympics as the most tweeted event this year.

Obama’s tweet was retweeted (repeated) more than 810,000 times, Twitter said as it published a list of the most tweeted events in 2012. (http://2012.twitter.com/)

“Within hours, that Tweet simultaneously became the most retweeted of 2012, and the most retweeted ever. In fact, retweets of that simple message came from people in more than 200 countries around the world,” Twitter spokeswoman Rachael Horwitz said.

Twitter users were busiest during the final vote count for the presidential elections, sending 327,452 tweets per minute on election night on their way to a tally of 31 million election tweets for the day.

The 2012 Olympic Games in London had the most overall tweets of any event, with 150 million sent over the 16 days.

Usain Bolt’s golden win in the 200 meters topped 80,000 tweets per minute but he did not achieve the highest Olympic peak on Twitter. That was seen during the closing ceremony when 115,000 tweets per minute were sent as 1990s British pop band the Spice Girls performed.

Syria, where a bloody civil war still plays out, was the most talked about country in 2012 but sports and pop culture dominated the tally of tweets.

Behind Obama was pop star Justin Bieber. His tweet, “RIP Avalanna. i love you” sent when a six-year-old fan died from a rare form of brain cancer, was retweeted more than 220,000 times.

Third most repeated in 2012 was a profanity-laced tweet from Green Bay Packers NFL player TJ Lang, when he blasted a controversial call by a substitute referee officiating during a referee dispute. That was retweeted 98,000 times.

This was the third year running that the microblogging site published its top Twitter trends, offering a barometer to assess the biggest events in social media.

Superstorm Sandy, which slammed the densely populated U.S. East Coast in late October, killing more than 100 people, flooding wide areas and knocking out power for millions, attracted more than 20 million tweets between October 27 and November 1.

European football made the list of top tweets when Spain’s Juan Mata scored as his side downed Italy 4-0 in the Euro 2012 final — sparking 267,200 tweets a minute.

News of pop star Whitney Houston‘s death in February generated more than 10 million tweets, peaking at 73,662 per minute.

Romantic comedy “Think Like a Man” was the most tweeted movie this year, topping “The Hunger Games”, “The Avengers” and “The Dark Knight Rises.”

Rapper Rick Ross who notched his fourth No. 1 album on the Billboard 200 chart this year, was the most talked about music artist.

(Editing by Rodney Joyce)

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“Hobbit” actor McKellen has prostate cancer

LONDON (Reuters) – “The Hobbit” actor Ian McKellen said in an interview published on Tuesday that he had had prostate cancer for the last six or seven years, but added that the disease was not life-threatening.

McKellen, 73, played Gandalf in the hit “Lord of the Rings” movie trilogy, and reprises the role in three prequels based on J.R.R. Tolkien’s novel “The Hobbit”.

The first of those, “The Hobbit: An Unexpected Journey”, recently had its world premiere in New Zealand, where it was shot under the directorship of Peter Jackson.

“I’ve had prostate cancer for six or seven years,” McKellen told the Daily Mirror tabloid. “When you have got it you monitor it and you have to be careful it doesn’t spread. But if it is contained in the prostate it’s no big deal.”

His representatives in London were not immediately available to comment on the interview.

“Many, many men die from it but it’s one of the cancers that is totally treatable,” added McKellen, one of Britain’s most respected actors who is also well known in Hollywood for appearances in the X-Men franchise.

“I am examined regularly and it’s just contained, it’s not spreading. I’ve not had any treatment.”

He admitted he feared the worst when he heard he had the disease.

“You do gulp when you hear the news. It’s like when you go for an HIV test, you go ‘arghhh is this the end of the road?’

“I have heard of people dying from prostate cancer, and they are the unlucky ones, the people who didn’t know they had got it and it went on the rampage. But at my age if it is diagnosed it’s not life threatening.”

“The Hobbit” opens in cinemas later this week.

(Reporting by Mike Collett-White)

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Boehner stands firm but hopeful on “fiscal cliff” talks

WASHINGTON (Reuters) – House of Representatives Speaker John Boehner offered no concrete signs of progress on Tuesday on the “fiscal cliff” talks but said he remained hopeful that both sides would reach an agreement by the end-of-year deadline.

Amid signs the White House and Boehner‘s office are making headway in the talks, Boehner repeated his now-familiar call for President Barack Obama to offer a new proposal to avert the automatic steep tax hikes and spending cuts set for the end of the year unless Congress intervenes.

“I’m an optimist. I’m hopeful we can reach an agreement,” Boehner said on the House floor.

While Boehner demanded more specific spending cuts from Obama, White House spokesman Jay Carney said the administration had submitted extensive proposals to reduce spending but Republicans had not offered specifics on increasing revenues.

“There is a deal out there that’s possible,” Carney told reporters. It could include reduced spending, more revenues and tax reform as long as Republicans accepted higher tax rates on the wealthiest Americans, he said.

“We do believe the parameters of a compromise are pretty clear,” Carney said.

The pace of staff-level talks has quickened since Boehner met on Sunday with Obama at the White House in a meeting that the Republican described as “nice” and “cordial.”

But Senate Democratic leader Harry Reid said it would be difficult to reach an agreement before Christmas.

“Until we hear something from Republicans, there’s nothing to draft,” Reid told reporters, referring to writing legislation based on a deal. “It’s going to be extremely difficult to get it done before Christmas.”

The two major elements of the fiscal cliff are broad spending reductions starting January 1 and tax cuts that expire at the end of the year. Economists have warned the fragile economy could slip back into recession without a deal.

Obama and Boehner have exchanged opening proposals aimed at cutting deficits by more than $ 4 trillion over the next 10 years, but they differ on how to get there.

Obama and Democrats demand that tax rates rise for the wealthiest 2 percent of Americans. Republicans want existing lower rates continued for all brackets and prefer to raise more revenue by eliminating tax loopholes and reducing deductions.

Republicans also want deeper spending cuts than those sought by Obama and fellow Democrats, particularly on social entitlement programs like the government-funded Medicare and Medicaid healthcare plans.

Stocks rose on Tuesday, with the S&P 500 reaching its highest close since Election Day. Markets endured a sharp selloff after the November 6 re-election of Obama, as investors focused on the fiscal cliff concerns.

“I guess in our own dysfunctional way, there is progress,” said Frank Davis, director of sales and trading at LEK Securities in New York. “Since conversations are occurring, it clarifies at least they are taking some action. My personal gut is they’ll jostle this into the holiday week and try to do a last-minute push.”

FRAMEWORK FOR A DEAL

While senior figures from both parties caution they are far from a deal, a softening of partisan rhetoric in recent days and the increased frequency of talks has created speculation that negotiations are going well.

If there is a fiscal cliff deal, congressional leaders will have to decide the most efficient way to move the controversial legislation forward. Aides said those decisions had not yet been made as negotiators were still focused on the elements of a possible deal and would then figure out the legislative vehicle to carry out any fiscal cliff measure.

The most frequently discussed scenario on Capitol Hill involves Democrats getting the higher rates on the top earners in exchange for significant concessions on reducing costs in entitlement programs.

The two parties could then work together next year on comprehensive tax reform aimed at creating more revenues, in part by eliminating some tax breaks.

A group of corporate leaders urged a fiscal cliff compromise that would include both higher taxes and spending cuts, but it did not take sides on whether the revenues should be from raising taxes on the wealthiest, as Obama wants, or from limiting deductions and closing loopholes, as Republicans want.

“For far too long, political paralysis has fueled global uncertainty that discourages businesses from investing and hiring new workers,” the CEOs said in a letter sent under the umbrella of the Business Roundtable, a non-partisan group that promotes business.

Complicating the talks is the looming need for an increase in U.S. borrowing authority that Obama wants before Congress wraps up for the year. Without the authority, the government will hit its $ 16.4 trillion borrowing limit by year’s end and run out of steps to stave off default by mid-February.

Obama has asked for the power to raise U.S. borrowing authority without legislation from Congress in hopes of avoiding another confrontation with Republicans like the 2011 showdown that led to an embarrassing downgrade of the U.S. credit rating.

Also in the mix is a payroll tax “holiday” set to expire, which, if not extended, will quickly reduce the take-home pay of a large segment of the U.S. workforce.

The holiday, now in its second year, has been providing workers with an average of about $ 1,000 a year in extra cash. Significant divisions remain on the payroll tax question in part because it funds the Social Security retirement program.

The payroll tax is paid by employers and employees each at a rate of 6.2 percent of wages, up to a maximum of $ 110,110. The holiday, enacted in 2010, reduced the rate by 2 percentage points on the portion paid by the worker.

Democratic Representative Chris Van Hollen said Republicans were coming around on the tax-rate hikes on the wealthiest Americans and there was a good chance of resolving that soon. But the other things might have to wait, he said, mentioning the budget cuts and the payroll tax.

If not complete by January 1, he said, “my belief is you would get it done very soon” after the New Year, noting that the government has some flexibility on withholding taxes that could limit the immediate hit to taxpayers while negotiations continued into 2013.

(Additional reporting by Rachelle Younglai, Kim Dixon, Steve Holland and Matt Spetalnick; Writing by John Whitesides; Editing by Alistair Bell and Eric Beech)

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TSX ends higher as financials gain; German data helps

TORONTO (Reuters) – Canadian stocks ended higher on Tuesday, helped by a strong showing from banks and other financial stocks as a German poll showed a sharp improvement in investor sentiment in Europe’s biggest economy.

The Toronto Stock Exchange‘s S&P/TSX composite index <.gsptse> added 51.89 points, or 0.42 percent, to close at 12,282.36.</.gsptse>

(Reporting by Alastair Sharp)

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Corruption probe shrouds Quebec in new darkness

MONTREAL (Reuters) – Half a century ago, a new crop of Quebec leaders sparked the so-called Quiet Revolution to eradicate the “Great Darkness” – decades of corruption that kept Canada‘s French-speaking province under the dominance of one party and the Catholic church.

The revolution’s reforms, including cleaning up the way lawmakers were elected and secularizing the education system, seemed to work, paving the way for decades of growth, progress and prominence as Canada emerged as a model of democracy.

Fifty years later, a public inquiry into corruption and government bid-rigging suggests the province’s politics are not as clean as Quebecers had hoped or believed.

Since May, when the inquiry opened in Montreal, Canadians have been getting daily doses of revelations of fraud through live broadcasts on French-language television stations. Corruption involving the Mafia, construction bosses and politicians, the inquiry has shown, drove up the average building cost of municipal contracts by more than 30 percent in Montreal, Canada’s second-largest city.

Last month, Montreal Mayor Gerald Tremblay resigned as did the mayor of nearby Laval, Gilles Vaillancourt. Both denied doing anything wrong, but said they could not govern amid the accusations of corruption involving rigging of municipal contracts, kickbacks from the contracts and illegal financing of elections.

Tremblay has not been charged by police. Vaillancourt’s homes and offices have been raided several times by Quebec’s anti-corruption squad, which operates independently of the inquiry, but no charges have been filed against him either. Police said the raids were part of an investigation but they would not release further details.

“Quebecers lived for several years under the impression that they had found the right formula, that their parties were clean,” said Pierre Martin, political science professor at the University of Montreal. Now, he said, “people at all levels are fed up.”

The inquiry must submit its final report to the Quebec government by next October. It has exposed practices worthy of a Hollywood noir thriller – a mob boss stuffing his socks with money, rigged construction contracts, call girls offered as gifts, and a party fundraiser with so much cash he could not close the door of his safe.

“Even though we are in the early days, what is emerging is a pretty troubling portrait of the way public contracts were awarded,” said Antonia Maioni, director of the McGill Institute for the Study of Canada in Montreal.

Quebec’s Liberals, the force behind the Quiet Revolution, launched the inquiry as rumors of corruption swirled. The government then called an election for September, a year ahead of schedule, in what was seen as an attempt to stop damaging testimony hurting its popularity.

The tactic did not help. Jean Charest’s Liberals lost to the Parti Quebecois, whose ultimate aim is to take the French-speaking province, the size of Western Europe, out of Canada.

‘IT WASN’T COMPLICATED’

According to allegations at the inquiry, the corruption helped three main entities: the construction bosses who colluded to bid on contracts, the Montreal Mafia dons who swooped in for their share, and the municipal politicians who received kickbacks to finance campaigns.

In Quebec, the Mafia has been dominated by the Rizzuto family, with tentacles to the rest of Canada and crime families in New York and abroad. But recently the syndicate has been facing challenges from other crime groups in Montreal, according to the Toronto-based Mafia analyst and author Antonio Nicaso.

The reputed godfather of the syndicate, Vito Rizzuto, has been subpoenaed to appear before the commission, but the date for his testimony has not been set.

The hearings have zeroed in on four construction bosses and how their companies worked with the Mafia, bribed municipal engineers and provided funds for mayoralty campaigns in Montreal, the business capital for Quebec’s 8 million people.

“It’s not good for the economy,” said Martin. “It’s not good for any kind of legitimate business that tries to enter into any kind of long-term relationship with the public sector.”

Quebec’s anti-corruption squad has arrested 35 people so far this year, staging well-publicized raids on mayoral offices and on construction and engineering companies. The squad has arrested civil servants and owners of construction companies, among others.

“I now must suffer an unbearable injustice,” Tremblay said in a somber resignation speech earlier this month after a decade as mayor of Montreal, saying he could not continue in office because the allegations of corruption were causing a paralysis at City Hall.

Some of the most explosive allegations at the inquiry, headed by Quebec Superior Court Justice France Charbonneau, came from Lino Zambito, owner of a now bankrupt construction company, and from a top worker for Tremblay’s political party, Union Montreal.

Zambito, who is seen as one of the smaller players and who also faces fraud charges, described a system of collusion between organized crime, business cartels and corrupt civil servants, with payments made according to a predetermined formula.

“The entrepreneurs made money, and there was an amount that was due to the Mafia,” Zambito told the inquiry. “It wasn’t complicated.”

Zambito said the Mafia got 2.5 percent of the value of a contract, 3 percent went to Union Montreal and 1 percent to the engineer tasked with inflating contract prices.

Tremblay did not respond to emails requesting comment on the allegations of corruption at city hall.

A former party organizer, Martin Dumont, alleged the mayor was aware of double bookkeeping used to hide illegal funding during a 2004 election.

Dumont said the mayor walked out of the room during a meeting that explained the double bookkeeping system, saying he did not want to know anything about it.

Dumont also described how he was called into the office of a fundraiser for Union Montreal to help close the door of a safe because it was too full of money.

“I think it was the largest amount I’d ever seen in my life,” Dumont said at the inquiry.

GOLF, HOCKEY, ESCORTS

The inquiry also saw videos linking construction company players with Mafia bosses. In one police surveillance video, a Mafia boss was seen stuffing cash into his socks.

A retired city of Montreal engineer, Gilles Surprenant, described how he first accepted a bribe in the late 1980s after being “intimidated” by a construction company owner. Over the years he said he accepted over $ 700,000 from the owners in return for inflating the price of the contracts.

Another retired engineer, Luc Leclerc, admitted to bagging half a million dollars for the same service. He said the system was well-known to many at city hall and simply part of the “business culture” in Montreal. He also got gifts and paid golf trips to the Caribbean with other businessmen and Mafia bosses.

Gilles Vezina, who is currently suspended from his job as a city engineer, concurred.

“It was part of our business relationships to get advantages like golf, hockey, Christmas gifts” from construction bosses, he told the inquiry in mid-November.

The gifts didn’t stop there. Vezina said he was twice offered the services of prostitutes from different construction bosses in the 1980s or early 1990s, which he said he refused.

The accusations are jarring for a country that prides itself on being one of the least corrupt places in the world, according to corruption watchdog Transparency International. But experts say corruption in Montreal was something of an open secret.

“The alarm signals have been going off here for 20 years and no one has done anything,” said Andre Cedilot, a former journalist who co-wrote a book on the Canadian Mafia.

Quebec’s new government has introduced legislation tasking the province’s securities regulator with vetting businesses vying for public contracts and allowing it to block companies that do not measure up.

Anti-corruption activist Jonathan Brun was not optimistic.

“You’ve got to use modern technology,” said Brun, a co-founder of Quebec Ouvert, a group that wants to make all information about contracts freely available rather than asking regulators to oversee individual companies. “You’ve got to change the entire system if you really want to fight corruption.”

(Writing by Russ Blinch; Editing by Janet Guttsman, Mary Milliken and Prudence Crowther)

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Tech guru McAfee’s legal appeals win him respite in Guatemala

GUATEMALA CITY (Reuters) – U.S. software pioneer John McAfee, facing deportation from Guatemala to Belize to answer questions over the death of a neighbor, has bought himself some time with legal appeals, the Guatemalan government said on Sunday.

McAfee’s lawyers have filed a request with a local court to grant him leave to stay in Guatemala until his legal appeals against deportation have been settled, which could take months.

“The government of Guatemala respects the courts and we have to wait for them to make a decision,” said Francisco Cuevas, a spokesman for the Guatemalan government.

The government initially said it would deport him straight away after rejecting McAfee’s request for asylum on Thursday.

Guatemala has been holding the former Silicon Valley millionaire since he was arrested on Wednesday for illegally entering the country with his 20-year-old Belizean girlfriend.

Officials in Belize want to question McAfee as a “person of interest” in the killing of fellow American Gregory Faull, his neighbor on the Caribbean island of Ambergris Caye.

The court has up to 30 days to rule on his request, but McAfee’s lawyers said on Sunday they expect a ruling in the American’s favor as early as Monday.

“We are filing a series of papers with the court to attempt to keep me here long enough for the world to see the injustice of sending me back to Belize,” McAfee said in an online news conference on Sunday evening.

McAfee has been evading Belizean officials for nearly a month, saying he fears they want to kill him, and that he is being persecuted for speaking out about corruption in the country’s ruling party. Belize’s prime minister has rejected McAfee’s claims, calling him paranoid and “bonkers.”

McAfee’s attorney, Telesforo Guerra, said that if his request with the court is successful, McAfee would be allowed to stay in the country until the legal suits have been resolved.

His lawyers have filed several injunctions against government officials, alleging McAfee’s rights were violated because his asylum request was not given proper consideration.

McAfee said on Saturday he wanted to return to the United States, and Guerra said he had filed a motion that would require Guatemalan authorities to deport him there and not to Belize.

The eccentric tech pioneer, who made his fortune from the anti-virus software bearing his name, has been chronicling life on the run in a blog, www.whoismcafee.com.

(Editing by Dave Graham; editing by Todd Eastham)

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Obama takes his case to people for “fiscal cliff” deal

REDFORD, Michigan (Reuters) – Making no visible headway in direct talks with Republicans, President Barack Obama took to the road on Monday to apply pressure on his political opponents to agree to a “fiscal cliff” deal that would raise taxes on the richest Americans.

Wearing shirtsleeves with no suit coat and speaking in front of an array of auto workers, Obama plunged into his new campaign a month after winning re-election on a vow to raise taxes on the wealthiest and take care of the middle class.

Obama made his appeal in Michigan where his popularity is high due in part to the 2009 government bailout of the state’s auto industry. He won Michigan easily in the November 6 election.

Now, Obama is trying to convince Americans that congressional Republicans need to avert a year-end fiscal crisis by increasing taxes on people making more than $ 250,000 a year.

If no agreement is reached by January 1, Bush-era tax cuts on all Americans expire and spending cuts agreed to last year kick in, a scenario known as the fiscal cliff that could hurl the economy back into recession.

A typical middle-class family of four, Obama said, would see an income tax hike of $ 2,200 a year if no deal is done.

“How many of you can afford to pay another $ 2,200?” he asked workers at a Daimler automobile manufacturing plant near Detroit. “That’s a hit you can’t afford to take.”

Polling shows most Americans would blame Republicans if the country goes over the fiscal cliff, and pressure has been building from some Republicans for House of Representatives Speaker John Boehner to get an agreement quickly, even if it means tax hikes on the wealthiest.

Obama painted a stark picture of what would happen if bipartisan talks fail.

Consumer spending would go down because families would have less expendable income, meaning businesses would have fewer customers and the economy would go into a “downward spiral,” he said.

“There’s good news,” he said. “We can solve this problem.”

Republicans accuse Obama of not proposing sufficient cuts to entitlements, like the Medicare health insurance program for seniors, to make a tax increase more palatable to Republicans.

The two sides have hit back at each other with rhetorical broadsides and appear no closer to an agreement than they did a month ago. The White House and Boehner’s office held more talks on Monday.

The Michigan trip was Obama’s second to hammer away on the fiscal cliff theme, after a stop in Pennsylvania on November 30.

(Editing by Alistair Bell and Eric Beech)

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