PEOPLE's Music Critic: Why We're Upset About Beyoncé's Lip-Synching Drama

By Chuck Arnold

01/22/2013 at 08:40 PM EST

Did she lip-synch or didn't she?

That's the question surrounding Beyoncé after reports surfaced that she didn't sing "The Star-Spangled Banner" live at yesterday's presidential inauguration.

A spokesperson for the U.S. Marine Band, which backed the pop diva at the ceremony, said Tuesday that Mrs. Jay-Z decided to use a previously recorded vocal track before delivering the national anthem, but later on another spokesperson, this one for the Pentagon, said there was no way of knowing whether the 16-time Grammy winner was guilty of lip-synching or not.

Should it matter? Let's remember that Whitney Houston, in what is widely considered one of the best renditions of "The Star-Spangled Banner" of all time, didn't sing it live either at the 1991 Super Bowl.

There are all sorts of technical reasons why it can be challenging to perform a song as difficult as this on such a large scale, and there are many extenuating circumstances that could have played a role in any decision to lip-synch. Certainly no one is questioning whether Beyoncé – who, in removing her earpiece midway through, may have been experiencing audio problems – has the chops to sing it.

Lip-synching – or at least singing over pre-recorded vocal tracks – has long been acceptable for dance-driven artists like Madonna, Janet Jackson and Britney Spears, whose emphasis on intense, intricate choreography makes it hard to execute the moves fans have come to expect while also singing live. Huffing and puffing into the microphone or barely projecting for the sake of keeping it real just isn't gonna cut it. Of course, there have been other instances – such as Ashlee Simpson's 2004 Saturday Night Live debacle – where faking it crossed the line.

Surely there wouldn't be the same controversy about Beyoncé had she been hoofing across the stage performing "Single Ladies (Put a Ring on It)" on one of her tour stops. But this was the presidential inauguration, the national anthem, and there was no choreography involved.

Some things have to remain sacred, and for "the land of the free and the home of the brave," this was one of them.

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Yen, Asian shares mark time before BOJ decision

TOKYO (Reuters) - The yen and Japanese equities were volatile on Tuesday after the Bank of Japan took bold easing measures, while other Asian stock markets posted modest gains.

The BOJ on Tuesday doubled its inflation target to 2 percent and adopted an open-ended commitment to buy assets, surprising markets that had expected another incremental increase in its 101 trillion yen asset-buying and lending program.

"It was more or less within market expectations and was not disappointing. But it also didn't top expectations because there was speculation that the BOJ would do all it can, including removing the 0.1 percent floor on short term interest rates," said Hiroshi Maeba, head of FX trading Japan at UBS in Tokyo.

"Initial market reaction shows there are still players who want to short the yen, and the BOJ's decision today clears the way for further dollar/yen buying. I think the dollar may hit 95 yen by March," he said, adding that for now, the dollar/yen was likely to trade in ranges.

Japan's benchmark Nikkei average <.n225> surged as much as 0.8 percent before trimming all gains to fall 0.6 percent. Tokyo shares have been rising in tandem with the yen's slide against major currencies on expectations for bolder BOJ steps. The Nikkei tumbled 1.5 percent on Monday after investors booked profits from the index's 2.9 percent rally on Friday. <.t/>

The dollar rose as high as 90.18 yen, but was last trading down 0.5 percent at 89.18 yen. It touched a fresh 2-1/2-year high of 90.25 on Monday. The euro rose to 120.18, but recently down 0.5 percent at 118.94 yen. The euro hit its peak since May 2011 of 120.73 on Friday.

There has been a perception in markets that even if investors rooting for much bolder BOJ steps cut their yen short positions in disappointment over the ultimate outcome, the yen's rebound was likely to be limited relative to its 13 percent decline against the dollar and a 20 percent drop versus the euro over the past two months. Such views were fed by expectations the BOJ will continue to aggressively ease monetary policy to drive Japan out of years of deflation and support the economy.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.2 percent. The index was pulled down on Monday after briefly touching 17-1/2-month highs as Malaysian stocks suffered their biggest drop in 16 months on election risks.

POSITIVE FACTORS EMERGE

Overall market sentiment was likely to remain supported by signs of a compromise to avert a U.S. fiscal crisis and hopes for a recovery in global growth following last week's positive data from the world's top two economies, the United States and China.

European shares rose on Monday near two-year highs, with investors betting on an improving economy in Europe. Wall Street was closed for Martin Luther King Jr. Day.

Republican leaders in the U.S. House of Representatives have scheduled a vote on Wednesday on a nearly four-month extension of U.S. borrowing capacity, aimed at avoiding a fight over the looming federal debt ceiling and shifting their negotiating leverage for spending cuts to other fiscal deadlines.

London copper climbed 0.7 percent to $8,115 a ton on growing confidence in the strength of China's economic recovery ahead of an early gauge of manufacturing activity this week, while BOJ easing has also stoked investor appetite for risk.

U.S. crude futures steadied around $95.59 a barrel while Brent futures edged up 0.3 percent to $112.

Gold was up 0.2 percent to $1,692.60 an ounce on a fresh round of easing from the BOJ.

(Reporting by Chikako Mogi; Editing by Shri Navaratnam)

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As Jordan Elections Near, Protesters Focus on King

Bryan Denton for The New York Times

Local tribal leaders in southern Jordan waited for a campaign event to begin on Saturday. Parliamentary elections are being held on Wednesday.

AMMAN, Jordan — For two years, protests demanding reform here have seethed, fueled by complaints about corruption, incompetent governing and the slow pace of change. In November, deadly demonstrations against a cut in fuel subsidies spread throughout the country.

Bryan Denton for The New York Times

Young supporters of the Islamic Action Front who are boycotting elections follow their party’s demonstration online.

The widening anger has brought together longtime political opposition figures with those who were once a part of the monarchy’s loyal base. The focus of the protests has also started to broaden, from anger at corrupt officials to bolder expressions of dissatisfaction with King Abdullah II.

To quiet his critics, the king is relying on a new round of parliamentary elections scheduled for Wednesday, a contest that he has promised “will breathe life into our democracy.”

The vote comes as Jordan copes with a number of domestic challenges, including a crushing deficit and a flood of more than 200,000 Syrian refugees — the kinds of crises that have often derailed movements for reform.

However, while the opposition has often seemed more conservative in Jordan than elsewhere in the region — calling for reform rather than the overthrow of the government — it is has shown no sign of easing pressure on the king.

The disillusionment that has fueled the protests is concentrated in the southern city of Ma’an, known for uprisings and phosphate mines.

In the center of town this week, a group of men who had occupied a traffic circle to protest the region’s lack of jobs ate lunch in a tent. Some said they had worked as smugglers, but even that trade had dried up.

“We want to live,” proclaimed graffiti on a sculpture. Beyond it the charred remains of the governor’s residence was visible, set on fire during a recent protest.

The parliamentary campaign in Ma’an has focused on local issues — like winning the region its share of the spoils from the mines — and on the corruption that has become a rallying cry for dissent across the country.

“They don’t see anything from the precious mines,” said Abdul-Karim al-Bahri al-Muhameed, a former civil servant who is running with the support of his tribe. “The king is not serious about getting the money stolen by corruption,” he said.

He sat in the salon of a tribal leader, Sheik Adel al-Muhameed, a supporter of his candidacy who was boycotting the vote. “I don’t trust the Parliament,” he said.

During the last two years, the government had approached tribal leaders like him to try and stop the street protests, Mr. Muhameed said. “The government cannot handle it,” he said. The election, he added, “is a play.”

Citing a history of rigged elections in Jordan that have produced toothless legislatures, many government critics have dismissed Wednesday’s polling as a cosmetic and desperate effort by an absolute monarch to avoid handing over power. A few opposition groups, including the largest, the Jordanian Muslim Brotherhood, and the protest network known as Hirak are boycotting the vote.

“He doesn’t carry out of any of his promises,” said Nimer al-Assaf, the deputy general secretary of the Islamic Action Front, the Brotherhood’s political party. Mr. Assaf predicted that no more than 25 percent of registered voters would turn up at the polls. “People are rejecting the whole idea,” he said.

But other opposition groups are participating in the election, stirring new divides.

Other candidates, to be sure, have put aside their misgivings in the hope that freedom will gradually emerge.

“Democracy happens in degrees,” said Mohamed al-Hajouj, a Palestinian refugee who is running for Parliament, undeterred by gerrymandered districts that continue to underrepresent the country’s citizens of Palestinian origin, a majority.

Something had to be done, Mr. Hajouj reckoned, likening Jordan to a grenade ready to explode. The elections, he said, would keep it from blowing up.

Jordanian officials say they have added a number of election safeguards to prevent what was seen as a process manipulated by the country’s powerful intelligence services and marred by vote-buying and other fraud.

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At Obama’s church service, hymns, prayers – and a tweet?

WASHINGTON (Reuters) – There was preaching, praying and singing at President Barack Obama’s church service on Inauguration Day on Monday. But was there tweeting, too?

As Atlanta pastor Andy Stanley wrapped up his sermon at St. John’s Episcopal Church across from the White House by urging Obama to leverage his power for the greater good, a tweet went out from the president’s own Twitter feed.

“I’m honored and grateful that we have a chance to finish what we started. Our work begins today. Let’s go. -bo,” said the tweet, which went to more than 26 million Obama followers.

Obama typically designates tweets that he writes himself by signing his initials in lowercase: “-bo.” That led to questions over whether the president had tweeted from church – and perhaps provided a new chapter in the debate over the appropriate use of social media.

But a White House spokesman said Obama did not send the tweet in the middle of the church service.

That means it could have been done by Obama in advance and timed for release while he was in church, or that it was posted by Organizing for Action, the non-profit group that now operates the president’s Twitter account.

The new group, which is led by Obama’s former campaign team, plans to try to build public support for the president’s policies.

The group did not immediately comment on the authorship or timing of the tweet.

Even if Obama had sent out the tweet from church, such messages from the pew are no longer taboo, said Scott Williams, a pastor and consultant from Edmond, Oklahoma, who works with ministries to use social media to spread the word and engage members.

“It’s definitely OK – it’s relevant,” he said. He cited a verse from the prophet Isaiah: “Like a crane or a swallow, so did I twitter.”

“‘Thou shalt twitter in church’ is a way that I present it,” Williams said in an interview, noting that many people now used Bible apps on their mobile devices in the pews.

Stanley’s North Point Community Church in Atlanta produced a Christmas music video for iPhones and iPads that has been viewed 3.7 million times on YouTube, said Williams, who is familiar with the 33,000-member ministry.

Stanley delivered his sermon in a very “old-school” setting. St. John’s, a yellow church with white trim, was built in 1816 and often is called the “Church of the Presidents” because every president since James Madison has attended it at least occasionally.

The service included a mix of traditional hymns such as “Oh God, Our Help in Ages Past,” a gospel solo by singer Ledisi, and an African-American spiritual, “Great Day.” It also included readings and prayers from Jewish, Christian and Catholic clergy.

Stanley talked about a passage in the Bible where Jesus washes his disciples’ feet, setting an example of equality.

“What do you do when it dawns on you that you’re the most powerful person in the room? You leverage that power for the benefit of other people in the room,” Stanley said.

“Mister President, you have an awfully big room,” the pastor said. “It’s as big as our nation. At times, as you know, it’s as big as this world.”

(Editing by David Lindsey and Peter Cooney)

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Vera Wang Reveals Details of Michelle Kwan's Wedding Dress

By Cynthia Wang

01/21/2013 at 07:00 PM EST

Michelle Kwan and Clay Pell

Courtesy of Caitlin Maloney

Although she was a singles figure skater throughout her successful career, Michelle Kwan did have one steadfast partner on the ice – fashion designer Vera Wang.

"I wore so many skating dresses designed by her, whole skating shows and everything," Kwan, 32, tells PEOPLE. "I have a long relationship with her."

And that made picking a wedding dress designer a fairly easy decision.

For Kwan's Rhode Island nuptials on Jan. 19 to Clay Pell, 31, Wang put plenty of consideration into her creation.

"She is marrying someone whose family has a political history, and Michelle is living and working in Washington, D.C.," the designer says. "[The dress] had to have a certain dignity and a certain classicism, and I think it was a lot about a new way of looking at tradition."

So Wang created an ivory, strapless mermaid gown for Kwan, made with layers of silk organza and featuring lace appliqué.

"The fact that it's got an inordinate amount of handwork in terms of lace is really a tribute to the art of hand-piecing lace," Wang says. "There is a princess-slash-queenly level of sophistication and quiet without sacrificing a lot of detail."

To complement the formal wedding gown, Kwan asked Wang what she thought of designing a second dress for the reception. "She said, 'Yeah, I got it,' " Kwan says. "She said, 'First dance, yes, and then you've got to change into something else.' "

Her history with the skater was not lost on Wang. "I'm really very honored and very thrilled that a, Michelle has found the love of her life and b, that I am the one to dress her for that special day just as I did for world championships, national championships, and Olympics," she said. "It's just the ongoing saga of our friendship."

For more on Kwan's wedding, including photos and details from the ceremony, pick up a copy of next week's PEOPLE, on newsstands Friday

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Asian shares pause, yen volatile as Bank of Japan meeting eyed

TOKYO (Reuters) - Asian shares held steady on Monday after surging to multimonth highs last week, while the yen firmed after touching a new low in choppy trade ahead of a Bank of Japan policy meeting this week that is expected to yield bold monetary easing measures.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was steady after earlier easing as much as 0.3 percent. The index closed at a 17-1/2-month high on Friday as upbeat U.S. and Chinese data lifted sentiment.

Australian shares <.axjo> inched up 0.1 percent while South Korean shares <.ks11> recouped earlier losses but remained capped as a stronger local currency hurt exporters.

The focus in Japan was on the BoJ, which starts its two-day policy meeting on Monday under growing political pressure to pursue bolder measures to beat deflation, with speculation ranging from an open-ended commitment to buy assets until a 2 percent inflation target is achieved to simply boosting its asset buying schemes.

Early on Monday, the dollar touched a fresh 2-1/2-year high of 90.25 yen, and the euro rose to a high of 120.27 yen, near its peak since May 2011 of 120.73 hit on Friday.

But the yen clawed back some of its losses against the dollar and the euro. The dollar slipped back to a low of 89.42 yen and was last trading at 89.66 yen, while the euro also fell to a low of 119.08 and last traded at 119.44 yen.

"Profit taking pushed the dollar and the euro down against the yen but short covering lifted them off their lows. Trading is thin and quite volatile. I don't think there will be any clear direction until the BoJ decision," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.

Saito said "sell the fact" behavior could push the dollar down about 1 yen, but a serious disappointment on the BoJ outcome was unlikely.

The correction to the yen's years of excessive strengthening is now spurring adjustments to currencies such as the Korean won. A firmer won weighed on the Korea Composite stock Price Index <.ks11>, held back by exporters, and capping it near levels unchanged from Friday.

"Concern over the weakening yen appears to be playing a large part as the main board (Kospi) continues to underperform compared to Asian peers due to foreign selling," said Kim Joong-won, an analyst at NH Investment & Securities in Seoul.

Tokyo's benchmark Nikkei average <.n225> also slipped 0.9 percent as investors booked profits from the Nikkei's 2.9 percent rally on Friday, its biggest daily gain in 22 months. The Nikkei posted a 10th straight week of gains, its longest since 1987. <.t/>

Many investors largely keep short position on the yen.

"We expect the door for further easing will likely be left open irrespective of the outcome of BoJ policy meeting, either explicitly by the BoJ or implicitly through government's plan to nominate doves to replace the governor and deputy governors," Barclays Capital said in a note to clients.

Friday's data showed while currency speculators slightly cut their bets against the yen in the week to January 15, they remained overwhelmingly negative on the currency.

RISK APPETITE RETURNING

The steady showing in Asia equities followed a rise in global equities late last week when signs Washington may avert a fiscal crisis helped improve sentiment.

Republicans said the House will consider a bill to raise the U.S. debt ceiling enough to allow the country to pay its bills for another three months. The strategy would buy time for the Democratic-controlled Senate to pass a budget plan that shrinks the federal deficit.

The Dow Jones industrial average <.dji> and the Standard & Poor's 500 Index <.spx> ended Friday at five-year highs on a solid start to the quarterly earnings season. U.S. markets are closed on Monday for the Martin Luther King Jr. holiday.

Oil prices, however, took their cues from a weak consumer sentiment report in the United States, which showed a drop to the lowest in a year in January as a result of the uncertainty surrounding the country's debt crisis. Concerns about demand overshadowed supply disruption fears, reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries.

U.S. crude futures fell 0.4 percent to $95.21 a barrel while Brent fell 0.3 percent to $111.60 early on Monday.

(Additional reporting by Ian Chua in Sydney and Joyce Lee in Seoul; Editing by Shri Navaratnam)

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Iran Publicly Hangs 2 Men Convicted in Stabbing

Ebrahim Noroozi/Fars, via Associated Press

Iranians reacted in Tehran on Sunday at the execution of two men, whose stabbing of a man, caught on a video camera and posted online, caused an uproar.

TEHRAN — An eerie silence filled the air as a crowd of around 300 gathered Sunday just before sunrise in a Tehran park. They awaited the arrival of two young men who were about to die.

Amir Pourmand/Iranian Students News Agency, via Associated Press

Just before nooses were put on their necks, Alireza Mafiha, 23, laid his head on an executioner’s shoulder. Mohammad Ali Sarvari, 20, is at center.

The condemned stood shoulder to shoulder, motionless, in front of two police trucks with two nooses hanging from extendable cranes, about 15 feet high. Black-clad executioners were inspecting the remote controls they would use to hang the men, both in their early 20s, who were convicted of stabbing a man in November and stealing his bag and the equivalent of $20.

From behind a makeshift barrier of scaffolding, the crowd jostled for position. “Let’s move to the other side,” one spectator whispered to his wife, pointing to the spot where Iranian state television cameras had been set up. “I think we will have a better view from there.”

Although every year hundreds of convicts are hanged in Iran, a public hanging in a central park in Tehran is a rare event. Most hangings take place inside prisons, according to Iranian judicial officials and international human rights organizations.

Sunday’s execution in Park-e Honarmandan (Artists Park), near the crime scene, was part of a heavy-handed offensive by Iranian authorities, who say they are trying to prevent rising crime rates from getting out of hand by setting harsh examples. In recent weeks, public executions have been stepped up, and in several large cities the police have been rounding up what they call thugs and hooligans.

Police commanders and other officials blame government mismanagement of the economy — which they say has caused a rise in unemployment and inflation — for the increase in crime. International economic sanctions have aggravated problems, many here say, leading to a record gap between rich and poor in Iran.

While no official statistics are publicly available, officials report a rise in violent crimes, mostly perpetrated by young men attacking their victims with knives to get money and other valuables. Local news media report only a fraction of the episodes, but at social gatherings of middle-class Iranians — the usual targets — horrific stories of theft, kidnapping, rape and home burglaries abound.

“Two young men entered my house two weeks ago and beat me senseless,” said Manijeh, 54, a homemaker from north Tehran, a more affluent section of the city. The intruders bound her arms and legs and beat her, asking for the location of the safe, she said. “But we don’t have a safe,” said Manijeh, who declined to reveal her surname out of fear that the burglars would return. They stole her car, ransacked her home and took nearly everything inside, she said.

“Our city has become completely unsafe,” said Manijeh, speaking after her recent release from a hospital. “These things would never happen until some years ago. We need the harshest measures to stop these criminals.”

Armin, 30, an engineer, said his father was recently robbed and beaten by a gang of thieves on motorcycles. “They hit him hard, but afterwards he received an anonymous call telling him where to find his bag,” he said. “They took all his money but returned his documents.”

On Sunday, the two condemned men, Alireza Mafiha, 23, and Mohammad Ali Sarvari, 20, stood before the onlookers, many of whom said they were family members and friends.

“They have shaved his hair,” said one young man pointing at Mr. Mafiha who said he knew both men. Mr. Sarvari, baby-faced, stared wide-eyed into the crowd.

The two men, both unemployed and from poor families, had been caught two months ago on a security camera robbing a man and stabbing him, helped by two accomplices. Video from the crime spread on the Internet and caused a widespread uproar, prompting politicians and clerics to call for harsh measures.

Two weeks later, all four men were arrested. The head of Iran’s judiciary, Ayatollah Sadegh Larijani, made it clear in comments on the crime that even though their victim had not died, a death sentence for the two main defendants, Mr. Mafiha and Mr. Sarvari, was likely. “We need to act assertively and increase the costs for those committing street crimes,” he said, according to the semiofficial Fars news agency.

Ramtin Rastin contributed reporting.

This article has been revised to reflect the following correction:

Correction: January 20, 2013

An earlier version of this story and a picture caption misstated the ages of the two men who were executed. Alireza Mafiha was 23 and Mohammad Ali Savari was 20.

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Mobile revolution in Myanmar is on the cards, but too slow for many

YANGON (Reuters) – Myanmar is on the cusp of a mobile revolution. Only it’s happening way too slowly for many locals.

Last week the government invited expressions of interest for two mobile phone licenses – a first step towards increasing mobile penetration from its current 5-10 percent to 80 percent in three years. That would lift it off the bottom of the world’s ladder of mobile use and put it on a par with neighbors like Bangladesh.

In the meantime, users are chafing at the pace and price of adding connections.

A year ago the informal technology conference Barcamp Yangon was buzzing with rumours of a SIM card that would cost about $ 6 – or 1 percent of its actual price at the time.

A year on, Barcamp is back but the talk is much less dramatic: whether the state-owned operator might this week release SIM cards costing between around $ 100. That would still be half of what the last tranche sold for, but it still leaves many unhappy.

“The clock is ticking,” says Ravi Chhabra, a local technology entrepreneur. “People are frustrated. There is lots of speculation and this creates anxiety.”

Nobody questions the need for more connections, and foreign operators have salivated at what amounts to one of the last major untapped markets.

President Thein Sein has made it clear that mobile telephony is a cornerstone of his policy, and has also vowed that mobile communications would be cheap – a promise he reiterated to a conference of donors on Saturday.

Still, getting it done is not proving easy.

The notice inviting expressions of interest in two licenses was a welcome sign that things were moving, but IT experts and sources close to the communications ministry said the timing was surprising, given that the revised telecommunications law which would define the nature of any investment had yet to be passed by the parliament.

The government said in an appendix to the notice that a new draft of the law – which had been quietly withdrawn last year after criticism about its contents – had been submitted to parliament and was expected to be passed by June.

“After the law is finished then there should be a clear policy before any expression of interest is sought,” said Zaw Min Oo, secretary general of the Myanmar Computer Federation.

On top of that, the next day Telecommunications Minister Thein Tun, who had overall responsibility for mobile licensing, resigned. No reason has been given, and officials declined to comment.

“BIT OF AN EARTHQUAKE”

Sources close to the ministry say his departure had been rumored for several months, but the timing was unexpected, and raises questions about what might happen next.

“It’s been a bit of an earthquake; now we need to sit back and watch, see which buildings fall down,” said one source close to the ministry who, like others interviewed, declined to be named for fear of jeopardizing business relationships with the ministry and its companies.

Not everyone is concerned. Romain Caillaud, a Yangon-based consultant with Vriens and Partners, says both the notice and the resignation “should accelerate the liberalization and growth of the telecom sector.”

Major foreign telecommunications companies are likely to submit expressions of interest ahead of the deadline of January 25, say experts.

Alessio Polastri, a lawyer who represents several such firms in Myanmar, says whatever delay in the process there has been will benefit the government.

“It’s almost an asset in that initial concerns about political stability have disappeared, so, most likely, not only more telecommunications companies will take part in the tender process but also the winners shall be more confident in committing higher investment,” he said.

More thorny for the government, however, may be assuaging local interests. By inviting expressions of interest for two licenses, the government appeared to be committing itself to offering four licenses – two for foreign companies, and two for local ones: state-owned Myanmar Posts and Telecommunications, or MPT, and Yatanarpon Teleport, an internet service provider which is 51 percent owned by MPT.

Some local businesspeople are questioning the wisdom of this, saying that MPT should not effectively own more than one license.

CHEAP SIM CARDS

Dozens of local IT entrepreneurs last November formed the Myanmar Technologies and Investment Corporation to bid for a license, and are currently lobbying parliament to merge the two local licenses, giving them a better chance of either winning one or setting up with a partner.

“So far the ministries have come back with positive responses and encouraged us,” said Thaung Su Nyein, who is also managing director of local media and IT company Information Matrix. “Even if we don’t get this license we’ve been led to understand we’ll get other business licenses.”

But more pressing is growing public frustration at the lack of progress on the ground.

Last year’s talk of cheaper SIM cards was fuelled partly by MPT’s decision to press ahead with expanding its own network, promising to add 30 million GSM connections by 2016 – financed by allowing contractors building the towers to sell a certain number of SIM cards.

Since then, the rumor mill has been alive with chatter about when new tranches of SIM cards might be available, and how much they might cost. A few weeks before the tech meet up, a previously obscure businessman held a press conference at which he promised SIM cards costing only 5,000 kyat (around $ 6).

While the promise went unfulfilled and the businessman disappeared from view, it started a movement of sorts: stickers appeared demanding 5,000 kyat SIM cards and several people were arrested in small demonstrations, according to exile media.

Those hopes have been dashed, but the shortfall of SIM cards ensures interest in a steady stream of sometimes conflicting reports about another imminent sale. One local media report quoted officials as saying more than 1.5 million SIM cards would be sold on Monday for 100,000 kyat each, or about $ 112.

That would still be out of the reach of most people in Myanmar.

“People want to see faster progress,” said a source close to the ministry. “At least half the country want a phone, and they want it soon.”

(Editing by Daniel Magnowski)

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