Cash scheme will influence polls, says CEC

CHENNAI/NEW DELHI: Chief election commissioner V C Sampath on Tuesday expressed his disapproval over the Centre's decision to go ahead with the direct cash transfer scheme when assembly elections were round-the-corner in Gujarat.

Himachal Pradesh, the other state that went to polls, is yet to know the result, and model code of conduct is still in force.

Sampath, who was in Chennai to review the ongoing summary revision of rolls, said that the EC would not allow the level playing field to be disturbed in any manner. He said the Centre should not have started the scheme at this juncture. "Our order is clear, that it is something which ought not to have been done now." The scheme will actually come into effect only on January 1, but the EC's view is that the announcement should not have been made now as it would influence elections in the two states. "We have expressed our concern," he added.

The CEC has also directed the Centre to suspend all steps towards operationalization of the scheme in the two election-bound states until the poll process was complete. Incidentally, this may make little difference on the ground as the direct cash transfer scheme is to roll out across 51 districts — of which four are in Gujarat and two in Himachal Pradesh — only from January 1, 2013. The poll process in the two states will wind up by December 24.

TOI was the first to report on December 2 about EC's unhappiness over the timing of the cash transfer scheme and said its implementation would be put on hold in the poll-bound states until after the elections.

The EC's order on Tuesday, which followed a BJP complaint, said the poll-eve announcement was "avoidable... going by the letter and spirit of the model code of conduct".

Stating that the commission was not going into the merits of the government's policy decisions but was concerned if any such decision would disturb the electoral level playing field, the EC said the government had failed to offer justification sought by it on the necessity of the direct cash transfer announcement while the poll code was in force in Gujarat and Himachal.

The three-member body is said to have questioned the urgency behind announcing the scheme in November when the roll out was slated only by the New Year, by when the poll process would be over.

Besides, the fact that two Union ministers, P Chidambaram and Jairam Ramesh, held forth on the benefits of the scheme from Congress platforms caught the EC's attention. The government sees cash transfers as a major poll hook, coining the slogan "aap ka paisa, aap ke haath" while seeing the benefits of the scheme in streamlining subsidies and getting rid of ghost beneficiaries. Mindful of its populist appeal, the BJP lost no time in alleging violation of the poll code by the Congress-led government at the Centre.

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Study: Drug coverage to vary under health law

WASHINGTON (AP) — A new study says basic prescription drug coverage could vary dramatically from state to state under President Barack Obama's health care overhaul.

That's because states get to set benefits for private health plans that will be offered starting in 2014 through new insurance exchanges.

The study out Tuesday from the market analysis firm Avalere Health found that some states will require coverage of virtually all FDA-approved drugs, while others will only require coverage of about half of medications.

Consumers will still have access to essential medications, but some may not have as much choice.

Connecticut, Virginia and Arizona will be among the states with the most generous coverage, while California, Minnesota and North Carolina will be among states with the most limited.

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Online:

Avalere Health: http://tinyurl.com/d3b3hfv

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Alaska Serial Killer Buried Murder Kits Across US

Israel Keyes, the Alaskan man whoconfessed to seven murders before killing himself in a jail cell, told police that he traveled the country to find victims and buried caches of weapons, money and tools for disposing of bodies to use in future crimes.

The FBI also released an ominous list of 35 trips Keyes made around the U.S., Mexico and Canada over the last eight years.

Keyes, 34, the owner of an Anchorage construction company, was in jail charged with the February murder of Samantha Koenig, 18. While in jail he had been confessing to at least seven other killings in Washington, New York and Vermont. He was found dead in his Alaska jail cell on Sunday in an apparent suicide.

Investigators are now piecing together a deadly puzzle that is uncovering a macabre lifestyle of Keyes traveling to kill simply because he "liked to do it," prosecutors said.

"In a series of interviews with law enforcement, Keyes described significant planning and preparation for his murders, reflecting a meticulous and organized approach to the crimes," the Anchorage FBI office said in a statement.

The FBI has released a timeline of Keyes' travels that showed nearly three dozen trips between 2004 and 2012. The destinations of the trips are vague, described only by U.S. region in most cases, but span the entire country, including Hawaii. There are also trips to Canada and Mexico listed.

"Keyes also admitted traveling to various locations to leave supplies he planned to use in a future crime. Keyes buried caches throughout the United States," the FBI said.

Missing Alaska Barista Had Past Restraining Order Watch Video

Authorities have already recovered two caches, one in Alaska and one in New York, that contained money, weapons and items for disposing of bodies. Keyes indicated that there were other supply boxes buried across the country.

He funded his travel with the proceeds from bank robberies, authorities said.

"Investigators believe that Keyes did not know any of his victims prior to their abductions," the FBI said. "He described several remote locations that he frequented to look for victims--parks, campgrounds, trailheads, cemeteries, boating areas, etc."

Keyes told authorities that his victims received little if any media attention when they disappeared. Authorities said that "based on his own research," Keyes said that one of his victims had been recovered, but the death was ruled accidental. Investigators said they have not identified the victim or location of that alleged crime.

Before his death, Keyes indicated that, in addition to Koenig and a Vermont couple, he killed four people in Washington State and one person in New York, but did not give the victims' names, authorities said.

"It was not unusual for Keyes to fly into an airport, rent a car, and drive hundreds of miles to his final destination," the FBI said.

That is precisely what Keyes did in the murder of Bill and Lorraine Currier in Essex, Vt., last year. He flew from Alaska to Chicago in June 2011. He rented a car in Chicago and drove to Vermont where he spent three days looking for his next victims and planning the slaying.

"When [Keyes] left Alaska, he left with the specific purpose of kidnapping and murdering someone," Chittenden County State Attorney T. J. Donovan said at the press conference. "He was specifically looking for a house that had an attached garage, no car in the driveway, no children, no dog."

The Curriers, unfortunately, fit all of Keyes' criteria. He spent three days in Vermont before striking. He even took out a three-day fishing license and fished before the slayings.

Keyes abducted the couple from their home and murdered them in an abandoned barn he had located before breaking into the Curriers' home. After binding the couple with plastic cuffs, the beat the husband with a shovel and then shot him. The wife was raped and strangled.

"By all accounts, [the Curriers] were friendly, peaceful, good people who encountered a force of pure evil acting at random," an investigator said at today's news conference. Authorities called the ongoing investigation a "huge case, national in scope."

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Israel says will stick with settlement plan despite condemnation

JERUSALEM (Reuters) - Israel rejected concerted criticism from the United States and Europe on Monday over Prime Minister Benjamin Netanyahu's decision to expand settlement building after the United Nations' de facto recognition of Palestinian statehood.

Washington urged Israel to reconsider its plan to erect 3,000 more homes in the occupied West Bank and East Jerusalem, saying the move hindered peace efforts with the Palestinians.

Britain, France, Spain, Sweden and Denmark summoned the Israeli ambassadors in their capitals to give similar messages.

An official in Netanyahu's office said Israel would not bend. "Israel will continue to stand by its vital interests, even in the face of international pressure, and there will be no change in the decision that was made," the official said.

Angered by the U.N. General Assembly's upgrading on Thursday of the Palestinians' status in the world body from "observer entity" to "non-member state", Israel said the next day it would build the new dwellings for settlers.

Such projects, on land Israel captured in a 1967 war, are considered illegal by most world powers and have routinely drawn condemnation from them. Approximately 500,000 Israelis and 2.5 million Palestinians live in the two areas.

In a shift that raised the alarm among Palestinians and in world capitals, Netanyahu's pro-settler government also ordered "preliminary zoning and planning work" for thousands of housing units in areas including the "E1" zone east of Jerusalem.

Such construction in the barren hills of E1 has never been put into motion in the face of opposition from Israel's main ally, the United States. Building in the area could bisect the West Bank, cut off Palestinians from Jerusalem and further dim their hopes for a contiguous state.

Israeli television stations reported Jerusalem's district planning commission would soon approve plans for several thousand more housing units, including more than 1,000 Israel had shelved two years ago after angering Washington by publishing the plans before a visit by Vice President Joe Biden.

The settlement plan, U.N. Secretary-General Ban Ki-moon said, would deal "an almost fatal blow" to a two-state solution to the Israeli-Palestinian conflict.

French President Francois Hollande said he was "extremely concerned" and Washington made clear it would not back such Israeli retaliation over the U.N. vote, sought by Palestinians after peace talks collapsed in 2010 over settlement building.

"We urge Israeli leaders to reconsider these unilateral decisions and exercise restraint as these actions are counterproductive and make it harder to resume direct negotiations to achieve a two state solution," White House spokesman Jay Carney told a briefing.

Ahead of a Netanyahu visit this week, Germany, considered Israel's closest ally in Europe, urged it to refrain from expanding settlements, and Russia said it viewed the Israeli moves with serious concern.

RETALIATION

Israeli Finance Minister Yuval Steinitz said Israel could not have remained indifferent to the Palestinians' unilateral move at the United Nations.

"I want to tell you that those same Europeans and Americans who are now telling us 'naughty, naughty' over our response, understand full-well that we have to respond, and they themselves warned the Palestinian Authority," he said.

Palestinian chief negotiator Saeb Erekat said building in E1 "destroys the two-state solution, (establishing) East Jerusalem as the capital of Palestine and practically ends the peace process and any opportunity to talk about negotiations in the future".

The United States, one of the eight countries to vote alongside Israel against the Palestinian resolution at the General Assembly, has said both were counterproductive to the resumption of direct peace talks.

In Europe, only the Czech Republic voted against the status upgrade while many countries, including France, backed it. Netanyahu plans to visit Prague this week to express his thanks.

In the Gaza Strip, Sami Abu Zuhri, spokesman for the governing Hamas Islamist movement, called the settlements "an insult to the international community, which should bear responsibility for Israeli violations and attacks on Palestinians".

Israeli police arrested three Jewish settlers on Monday whom they suspect of arson and other crimes against Palestinian property in the West Bank, including the torching of a car.

Attackers have often proclaimed they are exacting a "price tag" for steps taken against the settler movement by Palestinians, or by the Israeli government.

Alongside the settlement plans, Israel announced it would withhold about $100 million in Palestinian tax revenues from the Palestinian Authority, which exercises limited self-rule in the West Bank, saying Palestinians owed $200 million to Israeli firms.

"These are not steps towards peace, these are steps towards the extension of the conflict," Spanish Foreign Minister Jose Manuel Garcia-Margallo said.

Only three weeks ago, Netanyahu won strong European and U.S. support for a Gaza offensive that Israel said was aimed at curbing persistent cross-border rocket fire.

Favored by opinion polls to win a January 22 national election, he brushed off the condemnation and complaints at home that he is deepening Israel's diplomatic isolation.

Netanyahu told his cabinet on Sunday that his government "will carry on building in Jerusalem and in all the places on the map of Israel's strategic interests".

But while his housing minister has said the government would soon invite bids from contractors to build 1,000 homes for Israelis in East Jerusalem and more than 1,000 in West Bank settlement blocs, the E1 plan is still in its planning stages.

"No one will build until it is clear what will be done there," the minister, Ariel Attias, said on Sunday.

Israel froze much of its activities in E1 under pressure from former U.S. President George W. Bush, and the area has been under the scrutiny of his successor, Barack Obama.

Israel cites historical and Biblical links to the West Bank and Jerusalem and regards all of the holy city as its capital, a claim that is not recognized internationally.

(Additional reporting by Crispian Balmer, Dan Williams, Nidal al-Mughrabi in Gaza, Jihan Abdalla in Ramallah, Steve Gutterman in Moscow, Gareth Jones in Berlin, John Irish and Elizabeth Pineau in Paris and Tim Castle in London; writing by Jeffrey Heller; editing by Philippa Fletcher)

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Football: Lionel Lewis calls it a day

SINGAPORE: He was Singapore's safest pair of hands for almost a decade and, despite retiring from international football last year with 73 caps, Lionel Lewis was playing well enough to warrant consideration for a recall to the national squad for the current ASEAN Football Federation Championship.

But a persistent ankle injury put paid to the possibility of that happening, and now Lewis has decided to call it a day.

The 29-year-old Home United custodian will hang up his gloves to get a head start on his post-football career at Nanyang Polytechnic, his former school. He will be joining its Student Affairs Department.

"My friends and family know I have been thinking about my career after football," said Lewis, who had a training stint with Manchester City in 2007 and a week-long trial with Swiss side Grasshopper-Club Zurich.

"The job offer from Nanyang Polytechnic has been on the table for several months and after working out all the options, including the possibility of playing football on a part-time basis, I've decided to stop instead when my contract with Home runs out at the end of this month."

With a young family - his wife Jenny gave birth to their son Jonas only 10 weeks ago and his daughter Jennel is four - Lewis, who has a Sports Management degree from the University of Wolverhampton, felt it was necessary to not delay the start of his second career.

"I can play for another five to eight years, and if I were getting the kind of money that an English Premier League player earns, maybe it would be harder to walk away. But a footballer's pay here... you can't even smell their one-week wages," said Lewis, who did not say how much he earned at Home.

"I'm not putting down local football but that is the reality. Getting started now means that when I am 35, I can have a more assured career and hopefully be able to explore more options."

Former Singapore and Home United coach P N Sivaji thinks Lewis is making the right move.

"Yes, Lionel's one of our best goalkeepers ever, and yes, keepers do get better with age. But I think he's probably tired of the life of a footballer and its routines," he said.

Lewis' 12-year playing career has left him with a litany of injuries. He even had surgery three weeks ago to repair a tear to his anterior talofibula ligament. But he said he was not quitting because of his injuries.

"I've got to be satisfied with my 12 years, having won many trophies and travelled to most parts of the world," he said. "It has been an absolutely wonderful journey, and I am looking forward to this career change.

"I still plan to play football once a week and my friends will be happy because I can now join their social games."

- TODAY

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Zee editors denied bail for 2nd time in a week

NEW DELHI: For the second time in less than a week, a trial court on Monday dismissed the bail applications of the two Zee group editors arrested for allegedly trying to extort Rs 100 crore from Congress MP Naveen Jindal's firm.

Metropolitan magistrate Rajinder Singh on Monday dismissed the bail pleas, saying Zee News head Sudhir Chaudhary and Zee Business editor Samir Ahluwalia had not given any new grounds for their release on bail after their earlier plea was rejected on November 28. The two editors will now have to move a higher court for bail.

Move higher court for bail: Magistrate

Investigation is at a preliminary stage and there is no change of facts and circumstances since November 28...and no fresh ground has come up to release them on bail. Hence, in my considered opinion, the bail (plea) is dismissed," the court said while dismissing bail pleas of two Zee group editors. The metropolitan magistrate said the two editors would now have to move a higher court for bail.

During the hearing, special public prosecutor Rajiv Mohan argued that the two accused had no right to move a fresh bail plea as a similar application under section 437 of CrPC had been dismissed by a magistrate.

Mohan argued the two editors should not be given bail as they were involved in criminally extorting money from Jindal Steel and Power Limited and have also abused the freedom of speech and expression granted to the press under Article 19 of the Constitution. The two had been booked for non-bailable offences and hence can't be released on bail, Mohan added.

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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

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Karl Ritter can be reached at www.twitter.com/karl_ritter

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Kate Middleton Is Pregnant, in Hospital

Kate Middleton is pregnant.

The most eagerly awaited pregnancy was announced today by St. James Palace on behalf of Middleton and her husband Prince William.

The child, whether boy or girl, will eventually be heir to the British throne according to new legislation awaiting final approval.

The duchess was admitted to King Edward VII Hospital today in central London with hyperemesis gravidarum, an acute morning sickness which requires supplementary hydration and nutrients, the palace said.

Prince William is by his wife's side at the hospital, according to Britain's Press Association.

Click here for photos of Kate through the years.

"As the pregnancy is in its very early stages, Her Royal Highness is expected to stay in hospital for several days and will require a period of rest thereafter," the statement said.

The royal family was clearly delighted with the news.

"Their Royal Highnesses The Duke and Duchess of Cambridge are very pleased to announce that The Duchess of Cambridge is expecting a baby," the palace said in a statement today. "The Queen, The Duke of Edinburgh, The Prince of Wales, The Duchess of Cornwall and Prince Harry and members of both families are delighted with the news."

British Prime Minister David Cameron also reacted to the big news, telling BBC, "It's absolutely wonderful news and I'm sure everyone around the country will be celebrating with them tonight."

The prime minister told BBC that he found out when "I was handed a note in a meeting. And I have to say, it was difficult to keep it a secret."

The baby will be the queen's third great-grandchild.

Jonathan Nackstrand/AFP/Getty Images

Kate Middleton Pregnant, Admitted to Hospital Watch Video

Click here to vote for a royal name for a royal baby.

Robert Lacey, author of the definitive book "Majesty" said, "The British public and indeed the whole world will be delighted for the same, it keeps the monarchy going. The royal wedding brought a magic back to the monarchy and people are fascinated by William and Catherine."

The announcement follows relentless public and media speculation about when Prince William and his wife would have an heir. The guessing game began almost immediately after the couple said, "I do."

Click here for an interactive look at William and Kate's love story.

Tabloids began snapping close-ups of Middleton's stomach for any indication of a baby bump. Baby rumors abounded when the duchess held a baby at a press event and when she declined peanut butter at another event. British physicians are known to warn women against eating peanuts during pregnancy. When the couple got a dog, Lupo, headlines wondered if they were practicing for another addition to the family.

Click here for more on royal heirs around the world.

The palace, which rarely comments on speculation, took the unusual step of saying, "We would be the ones to make the announcement, not Hollywood."

"It is quite strange reading about it, but I try not to let it bother me," Prince William said in an interview with ABC News' Katie Couric in May 2012. "I'm just very keen to have a family and both Catherine and I are looking forward to having a family in the future."

Asked by Couric if there was anything else he wanted to share, he coyly answered, "You won't get anything out of me. Tight lipped."

Due to a dramatic change in the rules of succession, the royal couple's first-born will likely be the heir to the throne, regardless of the baby's gender.

Last year, the heads of 16 Commonwealth countries agreed to a change in the rules of succession so that first-born children of either gender can take the throne. Queen Elizabeth II was only eligible to be monarch because her father had no male children. The British Parliament must still amend existing law to make the succession change official.

"Put simply, if the Duke and Duchess of Cambridge were to have a little girl, that girl would one day be our queen," British Prime Minister David Cameron told reporters in 2011.

Royal babies have typically been born within one year of marriage. Princess Diana gave birth to William just 11 months after her wedding and the queen gave birth to Prince Charles six days before her first wedding anniversary.

Prince William and Kate were married on April 29, 2011.

William, who has long been known for making privacy a priority, will now be faced with the inevitable fascination with his first child. And the scrutiny will doubtless be familiar to him.

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Islamist protest shuts down Egypt's top court

CAIRO (Reuters) - Protests by Islamists allied to President Mohamed Mursi forced Egypt's highest court to adjourn its work indefinitely on Sunday, intensifying a conflict between some of the country's top judges and the head of state.

The Supreme Constitutional Court said it would not convene until its judges could operate without "psychological and material pressure", saying protesters had stopped the judges from reaching the building.

Several hundred Mursi supporters had protested outside the court through the night ahead of a session expected to examine the legality of parliament's upper house and the assembly that drafted a new constitution, both of them Islamist-controlled.

The cases have cast a legal shadow over Mursi's efforts to chart a way out of a crisis ignited by a November 22 decree that temporarily expanded his powers and led to nationwide protests.

The court's decision to suspend its activities appeared unlikely to have any immediate impact on Mursi's drive to get the new constitution passed in a national referendum on December 15.

Judges supervise voting in Egypt, and Mursi will need them to oversee the referendum.

But in a blow to the president, the Judges' Club, an influential society representing the nation's judges, decided on Sunday not to oversee the vote, the state news agency reported. The club's decisions are not binding on members, however.

Vice President Mahmoud Mekky said on Sunday he was confident the judges would perform that role, despite calls by Mursi's critics in the judiciary for a boycott.

Three people have been killed and hundreds wounded in protests and counter-demonstrations over Mursi's decree.

At least 200,000 of Mursi's supporters attended a rally at Cairo University on Saturday. His opponents are staging an open-ended sit-in in Cairo's Tahrir Square, the cradle of the uprising that toppled Hosni Mubarak in February 2011.

Mursi and the Muslim Brotherhood, which propelled him to power in a June election, hope to end the crisis by pushing through the new constitution hastily adopted by the drafting assembly on Friday. The next day the assembly handed the text to Mursi, who called the referendum and urged Egyptians to vote.

"The Muslim Brotherhood is determined to go ahead with its own plans regardless of everybody else. There is no compromise on the horizon," said Hassan Nafaa, a professor of political science at Cairo University.

Outside the Supreme Constitutional Court, Muslim Brotherhood supporters rallied behind the referendum date. "Yes to the constitution", declared a banner held aloft by one protester. Chants demanded the "purging of the judiciary".

The interior minister told the head of the court that the building was accessible and the protests were peaceful, according a statement from the ministry.

The protest reflected the deep suspicion harbored by Egypt's Islamists towards a court they see as a vestige of the Mubarak era. The same court ruled in June to dissolve the Muslim Brotherhood-led lower house of parliament.

Since then, several legal cases have challenged the legitimacy of the upper house of parliament and the 100-member constituent assembly that wrote the constitution.

Those against the upper house have focused on the legality of the law by which it was elected, while the constitutional assembly has faced a raft of court cases alleging that the way it was picked was illegal.

STOCK MARKET RALLIES

Mursi believes that securing approval for the new constitution in a popular referendum will bury all arguments on the legality of the constituent assembly, as well as controversy over the text it worked through the night to finish on Friday.

It will also override the November 22 decree that drew concern from Western governments and a rebellion by sections of the judiciary. The decree shielded Mursi from judicial oversight.

While the Islamists' critics, including representatives of the Christian minority, have accused the Brotherhood of trying to hijack the constitution, investors appear to have seen Mursi's moves as a harbinger of stability. They were also relieved that Saturday's mass Islamist protest went off calmly.

The main stock market index, which lost a tenth of its value in response to Mursi's November 22 decree, rallied more than 2 percent when the market opened on Sunday.

"The events that took place through the weekend, from the approval of the final draft of the constitution and the president calling a referendum, gave some confidence to investors that political stability is on track," said Mohamed Radwan of Pharos Securities, an Egyptian brokerage.

But the political opposition, made up of leftist, liberal and socialist parties, have been infuriated by what they see as the Brotherhood's attempt to ram through a constitution that does not enjoy national consensus.

Mursi's opponents warn of deeper polarization ahead.

"LET EVERYONE HAVE THEIR SAY"

Leading opposition figure Mohamed ElBaradei said on Twitter that the "struggle will continue" over a draft constitution that "undermines basic freedoms".

Liberal figures, including former Arab League chief Amr Moussa, pulled out of the constituent assembly last month, as did Christian representatives.

The draft constitution contains Islamist-flavored language which opponents say could be used to whittle away human rights and stifle criticism. It forbids blasphemy and "insults to any person", does not explicitly uphold women's rights and demands respect for "religion, traditions and family values".

The New York-based Human Rights Watch said it protected some rights while undermining others.

The text limits presidents to two four-year terms, requires parliamentary approval for their choice of prime minister, and introduces some civilian oversight of the military - although not enough for critics. Mubarak ruled for three decades.

Mursi described it as a constitution that fulfilled the goals of the revolution that ended Mubarak's rule. "Let everyone -- those who agree and those who disagree -- go to the referendum to have their say," he said.

The Islamists are gambling that they will be able to secure a "yes" vote by mobilizing their core support base.

Nafaa of Cairo University said the constitution would likely be approved by a slim majority. "But in this case, how can you run a country with a disputed constitution - a constitution not adopted by consensus?" he asked.

(Writing by Tom Perry; Editing by Alistair Lyon and Roger Atwood)

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French minister says 'no confidence' in steel tycoon Mittal

PARIS: A French minister cast doubt Sunday on whether the world's top steelmaker ArcelorMittal would keep its end of the bargain after a compromise deal on a key plant that Paris had threatened to nationalise.

The dispute over the closure of blast furnaces at the Florange plant risked damaging France's image among investors, after a virulent attack by a minister on the company owned by Indian-born steel tycoon Lakshmi Mittal.

"There has been an agreement but there is no confidence," French Ecology Minister Delphine Batho told the iTele network.

"Mittal has never kept his promises in the past," she said. "We are absolutely mobilised and the arm-wrestling with Mittal will continue to ensure that the pledges are respected."

Unions also echoed her fears, while Prime Minister Jean-Marc Ayrault defended the compromise deal.

"Our negotiations with Mittal had been bitter and difficult because we refused vague statements and wanted unconditional and specific commitments," Ayrault told the regional daily Le Republicain Lorrain.

The head of the French employers federation Medef, Laurence Parisot, also hailed the accord, saying it was "very clear: there is no job loss".

She added, however, that the doubts regarding Mittal's good faith were "dramatic", as union representatives voiced their concerns.

"The government's decision has created a lot of disappointment and left a bitter taste," said Jean-Claude Mailly, secretary general of Force Ouvriere, one of France's top three unions.

Mailly told the weekly Journal du Dimanche that he was "very sceptical" about Mittal's promises.

"He had (earlier) promised 320 million for Florange but we never saw the cash," he said.

"We have the feeling we have once again been betrayed," said Edouard Martin, a spokesman for the CFDT union at the Florange plant. "We don't trust Mittal at all."

The unions are due to meet Ayrault on Wednesday.

Ayrault announced a deal Friday in which he said ArcelorMittal had committed to invest at least 180 million euros ($234 million) over five years at the Florange site in northeastern France.

The government and the steelmaker had been waging high-stakes brinkmanship for weeks over the fate of two blast furnaces at the plant.

ArcelorMittal wanted to shut them for good because of a slump in demand for low-end steel products.

It had given the government until December 1 to find a buyer for the blast furnaces after which it would begin laying off around 630 employees.

The government responded by threatening to nationalise the entire site, which contains facilities to produce higher-end products that ArcelorMittal wanted to keep. Paris said it could not find a buyer for just the furnaces.

Under Friday's deal, the two blast furnaces ArcelorMittal had closed would be left intact until EU financing was confirmed for an existing carbon-capture project, while ArcelorMittal agreed not to proceed with forced job cuts.

A decision on funding the project will be taken on December 20, a week after it is examined by the member states, a top European source told AFP in Brussels.

The dispute had left President Francois Hollande's government caught between a pledge to protect jobs and the need to improve industrial competitiveness in the face of rising unemployment and stagnant growth.

It also came at a difficult time for ArcelorMittal. The company is saddled with a debt mountain that is expected to rise to $22 billion by the end of the year, with Moody's recently downgrading its credit rating to junk status.

- AFP/fa

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