At least 19 tourists die in balloon crash in Egypt

Updated 9:02 a.m. EST

LUXOR, Egypt A hot air balloon flying over Egypt's ancient city of Luxor caught fire and crashed into a sugar cane field on Tuesday, killing at least 19 foreign tourists, a security official said. The death toll rose Tuesday afternoon after a British tourist died of his injuries.

It was one of the worst accidents involving tourists in Egypt and is likely to push the key tourism industry deeper into recession.

The casualties included French, British, Belgian, Hungarian, Japanese nationals and nine tourists from Hong Kong, Luxor Governor Ezzat Saad told reporters.

Three survivors of the crash -- two British tourists and one Egyptian -- were taken to a local hospital. Local media reports said the pilot was among the survivors. One of the British tourists eventually succumbed to his injuries.

According to the Egyptian security official, the balloon was carrying at least 20 tourists and over Luxor when it caught fire, which triggered an explosion in its gas canister. It then plunged at least 1,000 feet from the sky.

The balloon crashed into a sugar cane field outside al-Dhabaa village just west of Luxor, 320 miles south of Cairo, said the official, speaking on condition of anonymity because he was not authorized to talk to the media.

Egyptians inspect the site where a hot air balloon exploded over the ancient temple city of Luxor on February 26, 2013.

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STR/AFP/Getty Images

Bodies of the dead tourists were scattered across the field around the remnants of the balloon. An Associated Press reporter at the crash site counted eight bodies as they were put into body bags and taken away. The security official said all 18 bodies have been recovered.

The official said foul play has been ruled out.

Egypt's civil aviation minister, Wael el-Maadawi, flew to Luxor to lead the investigation into the crash.

The head of Japan Travel Bureau's Egypt branch, Atsushi Imaeda, confirmed that four Japanese died in the crash. He said two were a couple in their 60s and from Tokyo. Details on the other two were not immediately available.

In Hong Kong, a travel agency said nine of the tourists that were aboard the balloon were natives of the semiautonomous Chinese city. There was a "very big chance that all nine have perished," said Raymond Ng, a spokesman for the agency. The nine, he said, included five women and four men from three families.

They were traveling with six other Hong Kong residents on a 10-day tour of Egypt.

Ng said an escort of the nine tourists watched the balloon from the ground catching fire around 7 a.m. and plunging to the ground two minutes later.

In Britain, tour operator Thomas Cook confirmed that two British tourists were dead and two were in hospital.

"What happened in Luxor this morning is a terrible tragedy and the thoughts of everyone in Thomas Cook are with our guests, their family and friends," said Peter Fankhauser, CEO of Thomas Cook UK & Continental Europe.

"We have a very experienced team in resort with the two guests in the local hospital, and we're providing our full support to the family and friends of the deceased at this difficult time," he said.

In Paris, a diplomatic official said French tourists were among those involved in the accident, but would give no details on how many, or whether French citizens were among those killed.

Speaking on condition of anonymity because he wasn't authorized to be publicly named according to government policy, the official said French authorities were working with their Egyptian counterparts to clarify what happened. French media reports said two French tourists were among the dead but the official wouldn't confirm that.

Hot air ballooning, usually at sunrise over the famed Karnak and Luxor temples as well as the Valley of the Kings, is a popular pastime for tourists visiting the area.

The site of the accident has seen past crashes. In 2009, 16 tourists were injured when their balloon struck a cellphone transmission tower. A year earlier, seven tourists were injured in a similar crash.

Egypt's tourism industry has been decimated since the 18-day uprising in 2011 against autocrat leader Hosni Mubarak and the political turmoil that followed and continues to this day.

Luxor's hotels are currently about 25 percent full in what is supposed to be the peak of the winter season.

Scared off by the political turmoil and tenuous security that has followed the uprising, the number of tourists coming to Egypt fell to 9.8 million in 2011 from 14.7 million the year before, and revenues plunged 30 percent to $8.8 billion.

Poverty swelled at the country's fastest rate in Luxor, which is highly dependent on visitors to its monumental temples and the tombs of King Tutankhamun and other pharaohs. In 2011, 39 percent of its population lived on less than $1 a day, compared to 18 percent in 2009, according to government figures.

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'93 WTC Bombing Crushed Lives, Not Memories

Edward Smith remembers vividly the call from the morgue 20 years ago today, that his pregnant wife had died in the World Trade Center bombing hours before she was supposed to start her maternity leave.

"It seems like kind of yesterday sometimes," he told ABC News, "but it seems like a long time ago, too."

Today marks the 20th anniversary of the 1993 WTC bombing, which was overshadowed eight years later by the 9/11 attacks. Six people died and about 1,000 were injured after terrorists detonated a truck bomb in the parking garage of the World Trade Center's North Tower Feb. 26, 1993.

Four of the six killed -- Robert Kirkpatrick, 61, Stephen A. Knapp, 47, William Macko, 57, and Monica Rodriguez Smith, 35 -- were employees of the Port Authority of New York and New Jersey, which owned the buildings. John DiGiovanni, 45, a dental-supply salesman visiting the World Trade Center, and Wilfredo Mercado, 37, a purchasing agent for Windows on the World restaurant, also died.

To commemorate the event, ABC News spoke with several people affected by the bombing -- a widower, a former Port Authority executive director, a plaintiff's attorney and a jury foreman -- to illustrate how the bombing resonates 20 years later.

EDWARD SMITH: Husband of pregnant Monica Rodriguez Smith, who died in the bombing.

Edward and Monica Rodriguez Smith on their wedding day, Aug. 31, 1990.

September 11: World Trade Center Time Lapse Watch Video

Edward Smith, 50, remembers where he was Feb. 26, 1993, when he heard the news.

"I was up in Boston, and I had heard there was a fire at the [World] Trade Center," Smith told ABCNews.com last week. "I turned the TV on, and eventually heard there was an actual bombing, and drove down as quickly as I could."

Smith said he couldn't reach his wife, Monica Rodriguez Smith, a secretary for a mechanical supervisor for the Port Authority of New York and New Jersey who worked in the World Trade Center, for "hours and hours."

He said he didn't hear from her or anything about her until he contacted the New York City morgue at 11:30 p.m. that evening.

"Obviously, I was informed that I should come there," Smith said.

He and his wife had been married for a little more than three years, he said, and Feb. 26 was to be Monica's last day of work before she went on maternity leave. They were expecting their first child, a boy, to be named Eddie.

"She had worked at the Port Authority for at least 12 years," Smith said. "And she had just gotten an award for never having a sick day. That was a little thing you remember."

Smith said the World Trade Center was where he met his wife the first time.

"I was a sales guy, selling to the Port Authority, and she was the admin [secretary] for one of the guys," he said. "For the first two years, she wouldn't go out with me.

"She said, 'Do you know how many knuckleheads come in here and ask me out? What makes you different?'" Smith recalled Monica's saying.

It took her two years to go out on a date with him, Smith said.

The couple tied the knot Aug. 31, 1990. Smith said he even bought the house in which he grew up on Long Island to raise their family.

But after the events of Feb. 26, 1993, Smith said, it was hard to stay in New York. Shortly after the bombing, he moved to Arizona and later to California.

"There were too many reminders, it was too much," he said.

Smith now resides in Phoenix, but makes a trip to New York every year for the memorial in February.
This year is no exception.

"It's kind of an interesting feeling," he said of the 20-year anniversary. "It seems like kind of yesterday sometimes, but it seems like a long time ago, too."

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Italy faces post-vote stalemate, spooking investors

ROME (Reuters) - The Italian stock market fell and state borrowing costs rose on Tuesday as investors took fright at political deadlock after a stunning election that saw a comedian's protest party lead the poll and no group secure a clear majority in parliament.

"The winner is: Ingovernability" ran the headline in Rome newspaper Il Messaggero, reflecting the stalemate the country would have to confront in the next few weeks as sworn enemies would be forced to work together to form a government.

In a sign of where that might lead, former prime minister Silvio Berlusconi indicated his center-right might be open to a grand coalition with the center-left bloc of Pier Luigi Bersani, which will have a majority in the lower house thanks to a premium of seats given to the largest bloc in the chamber.

Results in the upper house, the Senate, where seats are awarded on a region-by-region basis, indicated the center-left would end up with about 119 seats, compared with 117 for the center-right. But 158 are needed for a majority to govern.

Any coalition administration that may be formed must have a working majority in both houses in order to pass legislation.

Comedian Beppe Grillo's anti-establishment 5-Star Movement won the most votes of any single party, taking 25 percent. He shows no immediate inclination to cooperate with other groups.

Despite talk of a new election, the main established parties seem likely to try to avoid that, fearing even more humiliation.

World financial markets reacted nervously to the prospect of a stalemate in the euro zone's third largest economy with memories still fresh of the crisis that took the 17-member currency bloc to the brink of collapse in 2011.

In a clear sign of worry at the top over what effect the elections could have on the economy, Prime Minister Mario Monti, whose austerity policies were repudiated by voters, called a meeting with the governor of the central bank, the economy minister and the European affairs minister for later on Tuesday.

Other governments in the euro zone sounded uneasy. Allies of German Chancellor Angela Merkel made no secret of disappointment at Monti's debacle and urged Rome to continue with economic reforms Berlin sees as vital to stabilizing the common currency.

France's Socialist finance minister also expressed "worry" at the prospect of legislative deadlock in Italy but said that Italians had rejected austerity and hoped Bersani's center-left could form a stable government to help foster growth in Europe.

INSTABILITY

Fabio Fois, an economist at Barclays bank, said: "Political instability is likely to prevail in the near term and slow the implementation of much needed structural reforms unless a grand coalition among center-left, center-right and center is formed."

Berlusconi, a media magnate whose campaigning all but wiped out Bersani's once commanding opinion poll lead, hinted in a telephone call to a morning television show that he would be open to a deal with the center-left - but not with Monti, the technocrat summoned to replace him in a crisis 15 months ago.

"Italy must be governed," Berlusconi said, adding that he "must reflect" on a possible deal with the center-left. "Everyone must be prepared to make sacrifices," he said of the groups which now have a share of the legislature.

The Milan bourse was down more than four percent and the premium Italy pays over Germany to borrow on 10-year widened to a yield spread of 338.7 basis points, the highest since December 10.

At an auction of six-month Treasury bills, the government's borrowing costs shot up by more than two thirds. Investors demanded a yield of 1.237 percent, the highest since October and compared to just 0.730 percent in a similar sale a month ago.

Berlusconi, who was forced from office in November 2011 as borrowing costs approached levels investors feared would become unsustainable, said he was "not worried" about market reaction to the election and played down the significance of the spread.

The poor showing by Monti's centrist bloc reflected a weariness with austerity that was exploited by both Berlusconi and Grillo; only with the help of center-left allies did Bersani beat 5-Star, by just 125,000 votes, to control the lower house.

The worries immediately went beyond Italy's borders.

"What is crucial now is that a stable functioning government can be built as swiftly as possible," said German Foreign Minister Guido Westerwelle. "This is not only in the interests of Italy but in the interests of all Europe."

The euro skidded to an almost seven-week low against the dollar in Asia on fears about the euro zone's debt crisis. It fell as far as $1.3042, its lowest since January 10.

"NON-PARTY" SURGES TO THE TOP

Commentators said all Grillo's adversaries underestimated the appeal of a grassroots movement that called itself a "non-party", particularly its allure among young Italians who find themselves without jobs and the prospect of a decent future.

The 5-star Movement's score of 25.5 percent in the lower house was just ahead of the 25.4 percent for Bersani's Democratic Party, which ran in a coalition with the leftist SEL party, and it won almost 8.7 million votes overall - more than any other single party.

"The 'non-party' has become the largest party in the country," said Massimo Giannini, commentator for Rome newspaper La Repubblica, of Grillo, who mixes fierce attacks on corruption with policies ranging from clean energy to free Internet.

Grillo's surge in the final weeks of the campaign threw the race open, with hundreds of thousands turning up at his rallies to hear him lay into targets ranging from corrupt politicians and bankers to German Chancellor Angela Merkel.

In just three years, his 5-Star Movement, heavily backed by a frustrated generation of young Italians increasingly shut out from permanent full-time jobs, has grown from a marginal group to one of the most talked about political forces in Europe.

RECESSION

"It's a classic result. Typically Italian," said Roberta Federica, a 36-year-old office worker in Rome. "It means the country is not united. It is an expression of a country that does not work. I knew this would happen."

Italy's borrowing costs have come down in recent months, helped by the promise of European Central Bank support but the election result confirmed fears of many European countries that it would not produce a government strong enough to implement effective reforms.

A long recession and growing disillusionment with mainstream parties fed a bitter public mood that saw more than half of Italian voters back parties that rejected the austerity policies pursued by Monti with the backing of Italy's European partners.

Monti suffered a major setback. His centrist grouping won only 10.6 percent and two of his key centrist allies, Pier Ferdinando Casini and lower house speaker Gianfranco Fini, both of parliamentarians for decades, were booted out.

"It's not that surprising if you consider how much people were let down by politics in its traditional forms," Monti said.

Berlusconi's campaign, mixing sweeping tax cut pledges with relentless attacks on Monti and Merkel, echoed many of the themes pushed by Grillo and underlined the increasingly angry mood of the Italian electorate.

Even if the next government turns away from the tax hikes and spending cuts brought in by Monti, it will struggle to revive an economy that has scarcely grown in two decades.

Monti was widely credited with tightening Italy's public finances and restoring its international credibility after the scandal-plagued Berlusconi, who is currently on trial for having sex with an under-age prostitute.

But Monti struggled to pass the kind of structural reforms needed to improve competitiveness and lay the foundations for a return to economic growth, and a weak center-left government may not find it any easier.

(Additional reporting by Barry Moody, Gavin Jones, Catherine Hornby, Lisa Jucca, Steven Jewkes, Steve Scherer and Naomi O'Leary; Writing by Philip Pullella; Editing by Alastair Macdonald)

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Middle & lower-income groups may be priced out of car market: dealers

SINGAPORE: Car dealers on Tuesday said middle and lower-income groups may find it difficult to own a vehicle with the new rules in place.

The government on Monday announced a slew of measures, tightening the noose on car loans and registration fees.

This has prompted strong reactions from the industry and prospective buyers.

Under Budget 2013 measures, buyers have a maximum of five years to service their car loans.

They also have to foot a downpayment of 40 per cent or more for a new vehicle.

To top it off, Additional Registration Fee increases will apply to more expensive cars.

This has sent buyers and the market reeling.

Carway Enterprise, which helps buyers borrow to buy cars, said loan applications dropped by 30 to 40 per cent a day after the measures were unveiled.

Other car dealers said more time is needed to see what the real effects are.

Eddie Loo, managing director of CarTimes Automobile, said: "We have a mixture of customers -- those who come and buy (with) cash, but there are definitely people who want a hundred percent loan.

"So it's almost like 50-50 kind of market that people come into. So to penalise those who need a car and have to fork out 50 per cent of the loan amount, I think, the timing is not very correct."

Prospective car buyers are also feeling the pinch.

John Molina, a prospective car buyer, said: "I want to buy a car, but because of this, I mean it's impossible for me, or it's almost near-impossible."

Another prospective car buyer, Mark Lim, said: "For those people who are really very rich, to them there's no effect -- today I want to buy a Ferrari, for example, I don't even care about how much is the downpayment."

Still, others have suggestions on how to ease the pinch.

Singapore Vehicle Traders Association's honorary secretary Raymond Tang said: "The government should consider looking into the aspect of weighing these loan curbs -- should not be bringing it into the used car market."

He said the used car market is for people whose "budget is very constrained".

Questions which prospective buyers will be asking in the months ahead are: "To buy or not to buy, and which model? Can I even afford a car?"

Eyes will also be keenly watching how the Budget measures will affect the prices of Certificates of Entitlement (COEs) for cars. This will in turn determine just how expensive owning a set of wheels in Singapore will be.

- CNA/al

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'Brave' nets Pixar its seventh Best Animated Feature Oscar

Pixar's 'Brave' won the studio's seventh Oscar for Best Animated Feature Sunday night.

(Credit:
Disney/Pixar)

Although it didn't earn the critical acclaim of "Toy Story 3," "Up," or "Ratatouille," Pixar's 2012 film "Brave" joined those three hits, as well as three other Pixar predecessors, in winning the Oscar for Best Animated Feature.

Beating out fellow nominees "Wreck-it Ralph," "Frankenweenie," "ParaNorman," and "The Pirates! Band of Misfits," "Brave" became the seventh Pixar film to nab the Oscar since the Academy of Motion Picture Arts & Sciences began awarding the honor in 2002. No other studio has won as often.

"Brave" followed the story of Princess Merida, the rebellious daughter of King Fergus and Queen Elinor, who desperately wants to seek out her own path in life. An expert archer, Merida flouts a cherished custom and chaos befalls the kingdom. In order to defeat the curse, she must be brave and utilize her archery skills.

Visual Effects

The other major technical Oscar, for Best Visual Effects, went to "Life of Pi." Beating out nominated competition from "The Hobbit," "Marvel's The Avengers," "Snow White and the Huntsman," and "Promethus," "Life of Pi" featured visual effects from the firm Rhythm & Hues. Unfortunately, reported The Independent, the effects firm declared bankruptcy just a few days ago.

'Life of Pi' won the Oscar for Best Visual Effects.

(Credit:
Fox)

"Life of Pi" also scored three other Oscars, including Best Director, for Ang Lee, and Cinematography, for Claudio Miranda.

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Addressing controversy, Menendez invokes words of MLK

Amid a handful of allegations that threaten to mar his reputation in the Senate, Sen. Bob Menendez, D-N.J., continues to maintain his innocence, decrying the accusations as right-wing attempts to "destroy" his career and invoking the words of Martin Luther King Jr. in asserting his faith that justice will win out.

Menendez, who was re-elected to his seat in November, has since been hit with allegations that he solicited prostitutes in the Dominican Republic, where prostitution is legal. The FBI is looking into the claims. The allegations were originally reported by a conservative website citing an anonymous source.

Menendez has also been accused of improperly lobbying the State Department on a port security contract on behalf of Dr. Salomon Melgen, a close friend and donor. Menendez recently reimbursed Melgen $58,000 for two of three trips he took on Melgen's plane to the Dominican Republic in 2010, but called the tardy reimbursement an honest oversight and says the allegations against him are "absolutely false." The Senate Ethics Committee is investigating Menendez regarding those trips. Melgen himself is the target of more than one federal investigation stemming from allegations of Medicare fraud.

This weekend, at an event celebrating Black History Month at Shiloh Baptist Church in Trenton, N.J., the senator answered the accusations with the words of Martin Luther King Jr.

"Dr. King said that 'the arc of the moral universe is long, but it bends toward justice,'" he said, according to the New Jersey Star-Ledger. "Now we face anonymous, faceless, nameless individuals from right-wing sources seeking to destroy a lifetime of work. And their scares are false. I have worked too hard and too long in the vineyards to allow, at my hands, for the harvest to be soured."

"I have felt the sting of discrimination," he said, according to the North Jersey Record.

Menendez said he believes ultimately, "justice will overcome the forces of darkness."

"I have my hand on the plough," he said, "and I am going to continue to look forward and to work to make that plough lead us to the fulfillment of educational, economic and health care opportunity in this country."

A recent Quinnipiac poll shows a recent drop in Menendez's popularity, with just 36 percent approving and 41 percent disapproving.

But the Democrat, who is at the start of another six-year term, brushed off the importance of those numbers.

"The only poll that matters is what do I get accomplished each and every day," he said, according to the Star-Ledger.

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Best Moments From the Academy Awards

Host Seth MacFarlane took the stage at the 2013 Oscars with an opening monologue revealing he was ready to poke fun at the star-studded audience.

"The quest to make Tommy Lee Jones laugh begins now," he said.

But it wasn't too long before MacFarlane was interrupted. William Shatner, dressed as his iconic character Captain Kirk from "Star Trek," descended on the stage to warn MacFarlane that he was about to ruin the Oscars and be branded the worst host ever.

"The show is a disaster. I've come back in time … to stop you from ruining the Academy Awards," Shatner said.

Seth MacFarlane's Boobs Tribute

Shatner tried to steer MacFarlane away from singing an "incredibly offensive song that upsets a lot of women in the audience."

Cue MacFarlane's medley "We Saw Your Boobs," a laundry list set to music of acclaimed actresses in Hollywood who all bared their breasts in film.

MacFarlane was joined by the Gay Men's Chorus of Los Angeles to call out Meryl Streep, Anne Hathaway, Naomi Watts, Jodie Foster, Hilary Swank and countless others who we've seen nude in film.

Not every joke funnyman Seth MacFarlane made landed with the A-list crowd at the 85th annual Academy Awards.

The host elicited gasps from the crowd when he introduced "Django Unchained" as "the story of a man fighting to get back his woman, who's been subjected to unthinkable violence. Or, as Chris Brown and Rihanna call it, a date movie."

Another joke that somehow earned a too-soon nod? A throw to President Abraham Lincoln's assassination.

"I'd argue that the actor who really got inside Lincoln's head was John Wilkes Booth," MacFarlane said.

MacFarlane's jab at Mel Gibson didn't land too smoothly either. MacFarlane said the N-word laden "Django Unchained" screenplay was "loosely based on Mel Gibson's voicemails."

Oscars' Movie Musical Tribute

The theme of the 85 annual Academy Awards was celebrating music in film, and the tributes to movie musicals didn't disappoint.

Featured performers included Catherine Zeta-Jones belting "All That Jazz" from 2002's Best Picture winner "Chicago," Jennifer Hudson's show-stopping "And I'm Telling You I'm Not Going" from 2006's "Dreamgirls," and the cast of this year's Best Picture nominee "Les Miserables" reuniting on stage for "One Day More."

Introducing the Von Trapp Family

To introduce Christopher Plummer to the stage to present the award for Best Supporting Actress, MacFarlane couldn't help but make a joke out of the actor's infamous role as Captain Von Trapp in "The Sound of Music."

MacFarlane came out to announce the Von Trapp family singers, but no one came out. Instead, a man dressed in a Nazi uniform ran in to tell him that they were gone.

Kristen Stewart Hobbles on Stage to Present

When Daniel Radcliffe took the stage to present the award for Achievement in Production Design, he was joined by his hobbling co-presenter Kristen Stewart, who was seen crutching along the red carpet during the pre-show.

The "Twilight" star's makeup artist told People magazine that the actress "cut the ball of her foot, quite severely, on glass two days ago."

The Associated Press reported that backstage, Best Supporting Actress winner Anne Hathaway told Stewart to "break a leg."

Jennifer Lawrence's Unstable Victory

Jennifer Lawrence was so shocked to take home the Oscar for Best Actress that she lost her footing on her way up to the stage to accept her award.

"You guys are just standing up because I fell and that's really embarrassing," she said to the audience.

Lawrence regained her composure to give her acceptance speech, extending a special thank you to "the women this year," who she called "so magnificent and so inspiring."

Daniel Day-Lewis a Three-Peat Best Actor Winner

It was a highly anticipated win for Daniel Day-Lewis, who took home the award for Best Actor for his portrayal of Abe Lincoln in Steven Spielberg's "Lincoln."

Lewis cracked a joke in his acceptance speech, saying he was supposed to be cast as Margaret Thatcher and presenter Meryl Streep was the first choice for Lincoln.

"Meryl Streep was Steven's first choice to play Lincoln… I'd like to see that version," Lewis said.

Michelle Obama Announces Best Picture Winner

In one of the biggest surprises of the night, the Academy brought out First Lady Michelle Obama to help Jack Nicholson introduce the nominees for Best Picture.

Rocking her new bangs and a silver gown, the first lady, live from the White House, announced "Argo" as this year's Best Picture.

"It was a thrill to announce the #Oscars2013 best picture winner from the @WhiteHouse! Congratulations Argo!" FLOTUS tweeted afterwards.

Ben Affleck Triumphs at Oscars

Ben Affleck was flabbergasted by his win for Best Picture for "Argo." His frenzied, heartfelt acceptance speech resonated as he thanked his wife, Jennifer Garner, and ended on an inspirational high note.

"I want to thank my wife, who I don't normally associate with Iran. I want to thank you for working on our marriage. It is work, but it is the best kind of work," he said.

"I was here 15 years ago or something and you know I had no idea what I was doing. I stood out here in front of you all, really just a kid. I went out and I never thought I'd be back here and I am because of so many of you who are here tonight …. I want to thank them for what they taught me, which is that you have to work harder than you think you possibly can, you can't hold grudges. It's hard, but you can't hold grudges. And it doesn't matter how you get knocked down in life because that's going to happen. All that matters is that you got to get up."

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Powers to offer Iran sanctions relief at nuclear talks

ALMATY (Reuters) - Major powers will offer Iran some sanctions relief during talks in Almaty, Kazakhstan, this week if Tehran agrees to curb its nuclear program, a U.S. official said on Monday.

But the Islamic Republic could face more economic pain if it fails to address international concerns about its atomic activities, the official said ahead of the February 26-27 meeting in the central Asian state, speaking on condition of anonymity.

"There will be continued sanctions enforcement ... there are other areas where pressure can be put," the official said, on the eve of the first round of negotiations between Iran and six world powers in eight months.

A spokesman for European Union foreign policy chief Catherine Ashton, who leads the talks with Iran on behalf of the powers, said Tehran should understand that there was an "urgent need to make concrete and tangible progress" in Kazakhstan.

Both Russia and the United States stressed there was not an unlimited amount of time to resolve a dispute that has raised fears of a new war in the Middle East.

"The window for a diplomatic solution simply cannot by definition remain open forever. But it is open today. It is open now," U.S. Secretary of State John Kerry told a news conference in London. "There is still time but there is only time if Iran makes the decision to come to the table and negotiate in good faith."

Russian Deputy Foreign Minister Sergei Ryabkov said there was "no more time to waste", Interfax news agency quoted him as saying in Almaty.

The immediate priority for the powers - the United States, Russia, China, Germany, Britain and France - is to convince Iran to halt its higher-grade enrichment, which is a relatively short technical step away from potential atom bomb material.

Iran, which has taken steps over the last year to expand its uranium enrichment activities in defiance of international demands to scale it back, wants a relaxation of increasingly harsh sanctions hurting its lifeline oil exports.

Western officials say the Almaty meeting is unlikely to produce any major breakthrough, in part because Iran's presidential election in June may make it difficult for it to make significant concessions before then for domestic reasons.

But they say they hope that Iran will take their proposals seriously and engage in negotiations to try to find a diplomatic settlement.

"No one is expecting to walk out of here with a deal but ... confidence building measures are important," one senior Western official said.

The stakes are high: Israel, assumed to be the Middle East's only nuclear-armed arsenal, has strongly hinted at possible military action to prevent its old foe from obtaining such arms. Iran has threatened to retaliate if attacked.

GOLD SANCTIONS RELIEF?

The U.S. official said the powers' updated offer to Iran - a modified version of one rejected by Iran in the unsuccessful talks last year - would take into account its recent nuclear advances but also take "some steps in the sanctions arena".

This would be aimed at addressing some of Iran's concerns, the official said, while making clear it would not meet Tehran's demand of an easing of all punitive steps against it.

"We think ... there will be some additional sanctions relief" in the powers' revised proposal," the official said, without giving details.

Western diplomats have told Reuters the six countries will offer to ease sanctions on trade in gold and precious metals if Iran closes its Fordow underground uranium enrichment plant.

Iran has indicated, however, that this will not be enough.

Tehran denies Western allegations it is seeking to develop the capability to make nuclear bombs, saying its program is entirely peaceful. It wants the powers to recognize what it sees as its right to refine uranium for peaceful purposes.

The U.S. official said the powers hoped that the Almaty meeting would lead to follow-up talks soon.

"We are ready to step up the pace of our meetings and our discussions," the official said, adding the United States would also be prepared to hold bilateral talks with Tehran if it was serious about it.

Ashton's spokesman, Michael Mann, said the updated offer to Iran was "balanced and a fair basis" for constructive talks.

(Additional reporting by Yeganeh Torbati and Dimitry Solovyov; Editing by Jon Hemming)

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Budget 2013: Govt projects budget surplus of S$2.4b for FY2013

SINGAPORE: A windfall from stamp duties and vehicle-related taxes will hand the government a bigger than budgeted surplus for fiscal year 2012.

However, the revenue growth is expected to slow this upcoming financial year.

The government is projecting an overall budget surplus of S$2.4 billion or 0.7% of GDP for FY2013 starting 1 April.

The government is expecting to post a higher-than-expected surplus of S$3.9 billion or 1.1 percent of Singapore's GDP for FY2012.

But the government is expecting to collect lower revenue for FY 2013.

It is forecasting operating revenue of S$55.03 billion, a 0.3 percent decrease from FY 2012.

However, Net Investment Returns Contribution (NIRC) is projected to increase 0.7% to S$7.7 billion, from S$7.65 billion the previous year.

The NIRC will be used to fund S$5.6 billion in top-ups to endowment and trust funds, including the GST Voucher Fund.

For the new financial year, corporate income tax will amount to S$12.94 billion, about 1.5 percent increase from the previous year.

Personal income tax will generate another S$7.56 billion in revenue, a decline of 1.2% after factoring in personal income tax rebates.

Revenue from "Other Taxes" is forecast to grow 19.8% to S$5.14 billion, attributed mainly to higher foreign worker levy collections.

And with the property market expected to cool, stamp duty collections are projected to fall 26.2% to S$3.1 billion in FY 2013.

A new tiered Additional Registration Fee structure will raise registration fees for cars with open market value of S$20,000 and above.

But a one-year 30% road tax rebate for goods vehicles, buses and taxis will reduce collections for motor vehicle taxes by 12.1% to S$1.6 billion from the revised FY2012 estimate.

Collections from vehicle quota premiums are expected to drop 11.8% to S$2.4 billion.

Collections from Betting Taxes are expected to remain flat, at S$2.3 billion.

The government also expects a 10.4% decrease in revenue from withholding tax, at about S$1.14 billion.

- CNA/ir

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Indigo brings Siri-like assistance to Android for free (Hands on video)

Indigo brings the functionality of the iPhone's Siri to Android and Windows Phone 8, letting you sync the account across all your devices.

(Credit:
Andrew Hoyle/CNET)

BARCELONA, Spain--Want to challenge Siri to schedule every aspect of your busy life but don't want an iPhone? Great news for you then as Artificial Solution's Indigo service brings similar functionality to Android, Windows Phone 8, and your Web browser. Better yet, it's completely free.

Indigo works in much the same way as Siri; ask it your question and it will use its various channels -- Web searches, a built-in catalog of commands, and, also like Siri, Wolfram Alpha information -- to perform the required task.

The usual requests of "What is the weather doing in Barcelona this week?" are handled perfectly well and it's also able to create appointments, open apps, and dictate and send e-mails or post statuses to your social networks of choice. Unlike Siri, though, Indigo is available across multiple platforms and also lets you use one account to sync across them all.

The benefit of this is that if you begin creating an appointment on your Windows Phone device then switch to your
Nexus 10 Android tablet, your previous requests will already be there waiting for you. You can then finish off your searches without going through all the previous stages. Just think of it like updating a document in Google Docs and loading it up on a different machine.

The app itself looks neat and simple and was mostly accurate at recognizing words, even with the excessive background noise of the Mobile World Congress crowd.

It's coming soon to the Windows Phone 8 and
Android app stores and will be available through your Web browser, too. Artificial Solutions also explained that it's working with "major TV manufacturers" to integrate it into their TV's smart functions, although didn't have concrete times as to when to expect it. I'd also like to see it come into
cars, letting you perform all your essential smartphone tasks without taking your eyes off the road -- Artificial Solutions didn't indicate that this is on the horizon as yet, though.

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