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."

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

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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 Asian shares marked time on Tuesday as investors awaited the outcome of the Bank of Japan's policy meeting, with expectations running high for bold monetary easing measures aimed at reflating the world's third-largest economy.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.1 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.

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.

Australian shares <.axjo> were up 0.5 percent to a fresh 20-month high early on Tuesday while South Korean shares <.ks11> opened almost flat.

Japan's benchmark Nikkei average <.n225> opened up 0.2 percent. The Nikkei has faced choppy trading over the past two sessions as the yen became more volatile ahead of the BOJ meeting. Tokyo shares have been rising in tandem with the yen's slide against major currencies. The Nikkei tumbled 1.5 percent on Monday after investors booked profits from the index's 2.9 percent rally on Friday. <.t/>

Early on Tuesday, the dollar inched down 0.1 percent against the yen at 89.51 yen, after touching a fresh 2-1/2-year high of 90.25 yen on Monday. The euro fell 0.3 percent to 119.11 yen, off its peak since May 2011 of 120.73 hit on Friday.

Markets have priced in the BOJ boosting its asset-buying and lending program by another 10 trillion yen and doubling its inflation target to 2 percent. The BOJ will announce its decision after it ends its two-day meeting later on Tuesday.

Sean Callow, senior currency strategist at Westpac bank in Sydney, noted a bit more uncertainty over the policy decision, given speculation about open-ended easing and removing the 0.1 percent floor on short term interest rates.

"The biggest risk for USD/JPY is a cautious 10 trillion yen increase in asset purchases and not much else new aside from the 2 percent target. The best case for USD/JPY bulls is an open-ended commitment to increase quantitative easing until the inflation target is met," Callow said in a note.

There's a perception in markets that even if investors cut their yen short positions in disappointment over the BOJ result, 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, mainly due to expectations for more aggressive BOJ easing to drive Japan out of years of deflation and support the economy.

Overall market sentiment was likely to be supported by signs of a compromise to avert a U.S. fiscal crisis.

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.

The Bundesbank said on Monday Germany's economic slump should be short-lived, adding that the euro zone's largest economy could have already bottomed out.

U.S. crude futures were down 0.2 percent to $95.35 a barrel.

Gold was steady around $1,689.81 an ounce.

(Editing by editing by Shri Navaratnam)

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News Analysis: North Africa New Test for U.S. as Terror Cells Spread

WASHINGTON — The bloody resolution of the hostage crisis in Algeria has brought into focus the broader challenges the United States and its allies face in confronting terrorist cells that have taken up sanctuary across northern Africa.

The United States and France have been courting Algeria for months, hoping to secure its support for an international effort to evict Islamic militants out of northern Mali.

But the militants’ advance south, which set off an appeal for the French military intervention by the Mali government, and the hostage-taking at a gas-producing complex in the Sahara to the north have caught the United States by surprise and prompted fresh White House vows to combat terrorism in the region.

In taking on the militants, Western nations are confronting multinational bands that are often able to move with relative freedom across porous African borders. And those cells have many inviting targets to choose from: the entire region is rich with oil, gas, uranium and other international ventures that clearly represent Western interests and in some cases are poorly defended.

Also, with the United States and Britain determined not to send combat troops to North Africa, and the French hoping to avoid an open-ended deployment in Mali, Western nations must rely heavily on the forces of local nations who are not always open to outside advice.

Rudolph Atallah, a former Pentagon counterterrorism official, noted that one major terrorist group in the region, Al Qaeda in the Islamic Maghreb, had slowly branched out across borders. “To dismantle their network, the United States and its allies, African and European, will need a well-thought-out regional strategy,” he said.

Forging that strategy will be far from easy, given those involved. The Algerians have an able, if heavy handed, military, but have not been eager to cooperate extensively with the United States or their neighbors. Libya’s new government appears willing to cooperate but has little ability. Mali has little military ability and any enduring solution needs to be crafted with an eye to internal politics.

The harsh political realities of operating in Africa were evident during the hostage crisis in Algeria. Calculating that Algeria’s cooperation will be needed for the campaign against the militants in Mali, both France and the United States were careful not to complain that the Algerians had mounted their hostage rescue operation without consultation, nor did they complain about the tactics.

“Algeria has an approach which to me, as I see it, is the most appropriate because there could be no negotiation,” President François Hollande of France said Saturday.

Both France and the United States want Algeria to seal its borders with Mali, and France wants Algeria to continue to allow French planes to overfly its territory.

As the independent inquiry into the attack on the American mission in Benghazi observed, the Qaeda affiliate in North Africa and other militant factions in the region increasingly represent the new face of terrorism — groups that are violently anti-American but not under the command and control of Qaeda leaders in Pakistan.

Al Qaeda in the Islamic Maghreb started out as an Algerian group that was fighting the Algerian government. Pushed out of Algeria, it found a sanctuary in northern Mali as did militants who left Libya following the fall of Col. Muammar el-Qaddafi.

The initial French and American strategy was to keep a low profile in the region, while training African troops who would be sent to Mali to contend with the Qaeda-affiliated militants.

There were growing signs that North Africa was becoming more dangerous. A Western security expert who was asked to assess the threat to Algeria’s oil complex last year had reported an “elevated” risk due to the militants in Mali.

Still, the American and French plan assumed that the threat posed by the militants in Mali would be slow to build and that the West had time to organize an African military response — the plan had been to deploy it in September this year.

But the militants’ offensive in Mali and the attack in Algeria has demonstrated that the groups have a broader reach than anticipated and are prepared to take the offensive. The French intervention that followed has introduced a new variable in the equation.

“The ground has completely shifted,” said Bruce Hoffman, an expert on terrorism at Georgetown University.

The Obama administration, which has sent 100 trainers to an array of African nations to help prepare African troops for their mission alongside the French in Mali, appears to be weighing how energetically to support the French military effort.

With the Americans still scrambling to determine just what happened in Algeria and to identify their dead, the United States has yet to detail how it plans to adapt its Africa strategy.

Experts say that any regional strategy needs to help African nations better secure their borders, both to limit the movement of militant factions and to reduce drug smuggling, which is one of their main forms of raising revenue.

Targeting the militant leaders who are responsible for most of the attacks is essential, Mr. Atallah said.

But he stressed that an enduring solution in Mali, they say, needs to foster a political accommodation between the Mali government and the Tuaregs, a nomadic people in northern Mali, and ensure that Mali’s armed force does not use the counterterrorism campaign as an excuse to attack them.

The problem of human rights abuses remains a nagging concern for any Western-supported military intervention. Human Rights Watch recently reported that the militant groups in northern Mali have recruited several hundred children to use as soldiers, and added that some children were at checkpoints that had been bombed by French aircraft.

With the White House largely focused on domestic issues and officials long wary about expanding the American military footprint in the region, some of the barrier to action may be self-imposed.

Mr. Hoffman said that the United States should consider stepping up its support for the French intervention by providing additional logistical support and perhaps making use of drones so that the French military can better carry out its operations and hand over the mission as soon as possible to African troops.

“I do not think the U.S. involvement has to be extensive,” he said. “I do think we need to be more proactive.”

Steven Erlanger contributed reporting from Paris.

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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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Selena Gomez vs. Justin Bieber: Who Sang It Better?

By Alison Schwartz

01/20/2013 at 06:00 PM EST

Selena Gomez and Justin Bieber

Bryan Bedder/Getty; Steve Mack/FilmMagic

Selena Gomez didn't officially comment on the status of her relationship with on-again, off-again beau Justin Bieber at her New York City acoustic concert benefit for UNICEF. She didn't have to: her song choices seemed to do all the talking.

Along with a cover of industry pal Taylor Swift's "I Knew You Were Trouble," she also performed a rousing rendition of Justin Timberlake's ultimate breakup anthem: "Cry Me a River."

"I’ve kind of been through a lot these past couple of months, and it’s been really interesting and fun at the same time – and weird and sad, but cool," Gomez, 20, told the audience gathered Saturday night before launching into the 2002 pop single. "This song has helped me through a lot, and if anybody knows 'N Sync or, you know, some J.T., you’re gonna know what I’m talking about. But this song definitely speaks to me."

Of course, true Be-liebers know who made the first move: At his November concert in Boston, Bieber, 18, grabbed his acoustic guitar for a stripped-down version of Timberlake's hit, which takes on the feeling of finding out a partner has been cheating. (According to Vulture, he also covered the song in 2008.)

Watch the former couple try their hands at Timberlake's tune, and tell us in the comments below: Who deserves a standing ovation?

• Reporting by GABRIELLE OLYA

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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."

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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 edge down, yen eases as BoJ meeting eyed

TOKYO (Reuters) - Asian shares edged lower on Monday, taking a breather after hitting multimonth highs, while the yen touched a new low ahead of the outcome of the Bank of Japan policy meeting this week amid expectations for bold monetary easing measures.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was down 0.1 percent after closing at a 17-1/2-month high on Friday.

Australian shares <.axjo> inched up 0.1 percent while South Korean shares <.ks11> slipped 0.6 percent after opening nearly flat.

The focus in Japan was on the BoJ's policy meeting, with Tokyo's benchmark Nikkei average <.n225> sliding 1.1 percent after opening up 0.3 percent. The Nikkei surged 2.9 percent for its biggest daily gain in 22 months on Friday after the yen resumed its weakening track, posting a 10th straight week of gains, its longest since 1987. <.t/>

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.

The Bank of Japan 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.

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

"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.

The steady showing in Asia equities followed a rise in global equities late last week when positive U.S. and Chinese data and signs Washington may avert a fiscal crisis lifted 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.

"Another sharp decline in market uncertainty with respect to the US fiscal negotiations provided support to risky assets at the end of last week," said Barclays Capital in a separate research note.

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.

RISK APPETITE RETURNING

EPFR Global said on Friday EPFR Global-tracked Emerging Markets Bond Funds hit a 50-week high in the second week of January as investors saw some value in the riskier fixed income asset classes. Its Emerging Markets Equity Funds outdid Developed Markets Equity Funds for the sixth time in the past seven weeks, with diversified Global Emerging Markets Equity Funds and funds linked to China favored.

Last year, when several Asian stock markets rallied, many bigger hedge funds failed to beat benchmark returns but nimbler, small to medium-sized funds fared better.

Oil prices rose on Friday on 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 eased 0.2 percent to $95.36 a barrel early on Monday.

(Additional reporting by Ian Chua in Sydney; Editing by Shri Navaratnam)

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Priest Is Planning to Defy Vatican’s Orders to Stay Quiet

Jekaterina Saveljeva for The New York Times

The Rev. Tony Flannery, an Irish priest, was suspended by the Vatican last year. “I refuse to be terrified into submission,” he said.

DUBLIN — A well-known Irish Catholic priest plans to defy Vatican authorities on Sunday by breaking his silence about what he says is a campaign against him by the church over his advocacy of more open discussion on church teachings.

The Rev. Tony Flannery, 66, who was suspended by the Vatican last year, said he was told by the Vatican that he would be allowed to return to ministry only if he agreed to write, sign and publish a statement agreeing, among other things, that women should never be ordained as priests and that he would adhere to church orthodoxy on matters like contraception and homosexuality.

“How can I put my name to such a document when it goes against everything I believe in,” he said in an interview on Wednesday. “If I signed this, it would be a betrayal not only of myself but of my fellow priests and lay Catholics who want change. I refuse to be terrified into submission.”

Father Flannery, a regular contributor to religious publications, said he planned to make his case public at a news conference here on Sunday.

The Vatican’s doctrinal office, the Congregation for the Doctrine of the Faith, wrote to Father Flannery’s religious superior, the Rev. Michael Brehl, last year instructing him to remove Father Flannery from his ministry in County Galway, to ensure he did not publish any more articles in religious or other publications, and to tell him not to give interviews to the news media.

In the letter, the Vatican objected in particular to an article published in 2010 in Reality, an Irish religious magazine. In the article, Father Flannery, a Redemptorist priest, wrote that he no longer believed that “the priesthood as we currently have it in the church originated with Jesus” or that he designated “a special group of his followers as priests.”

Instead, he wrote, “It is more likely that some time after Jesus, a select and privileged group within the community who had abrogated power and authority to themselves, interpreted the occasion of the Last Supper in a manner that suited their own agenda.”

Father Flannery said the Vatican wanted him specifically to recant the statement, and affirm that Christ instituted the church with a permanent hierarchical structure and that bishops are divinely established successors to the apostles.

He believes the church’s treatment of him, which he described as a “Spanish Inquisition-style campaign,” is symptomatic of a definite conservative shift under Pope Benedict XVI.

“I have been writing thought-provoking articles and books for decades without hindrance,” he said. “This campaign is being orchestrated by a secretive body that refuses to meet me. Surely I should at least be allowed to explain my views to my accusers.”

His superior was also told to order Father Flannery to withdraw from his leadership role in the Association of Catholic Priests, a group formed in 2009 to articulate the views of rank-and-file members of the clergy.

In reply to an association statement expressing solidarity with Father Flannery, the Congregation for the Doctrine of the Faith denied it was acting in a secretive manner, pointed out that Father Flannery’s views could be construed as “heresy” under church law, and threatened “canonical penalties,” including excommunication, if he did not change his views.

This month, the Congregation for the Doctrine of the Faith wrote to an American priest, Roy Bourgeois, notifying him of his laicization, following his excommunication in 2008 over his support for the ordination of women.

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Timeline: Kim Dotcom’s year, from Megaupload to Mega

AUCKLAND (Reuters) – Here are the milestones in the past year for Megaupload founder Kim Dotcom. Dotcom plans to launch on January 20 a new online file storage system, known as Mega.

January 20, 2012 – Seventy armed New Zealand police raid Megaupload founder Kim Dotcom’s mansion outside Auckland, acting on a request from the U.S. Federal Bureau of Investigation.

Dotcom and his colleagues Finn Batato, Mathias Ortmann and Bram van der Kolk are served extradition and search warrants, arrested, and taken into custody. As operators of the website, they are charged with online piracy, fraud and money laundering, and their computers and files are seized. Megaupload is closed down. The raid occurs on the same day U.S. lawmakers axe anti-piracy legislation following heavy public opposition.

February 22 – Dotcom is released on bail, but his movements are restricted and he is prohibited from leaving New Zealand. His bail conditions are eventually relaxed to allow him free movement within the country, while the millionaire is given some access to his frozen funds to pay his legal team and living costs.

June 28 – A New Zealand court rules that search warrants used by local police to raid the Dotcom mansion were illegal, and moves by the FBI to copy data from Dotcom’s computers to take offshore were also unlawful. The court’s action is seen by many as weakening the extradition case against Megaupload.

August 16 – U.S. efforts to extradite Dotcom are dealt another blow as a New Zealand court rules that prosecutors must show evidence to support charges of internet piracy and copyright breaches. The judge in the case says withholding evidence from Dotcom would give Washington a significant advantage in the extradition hearing. She also rules that the document used to order his extradition was illegal.

September 27 – New Zealand’s Prime Minister admits that the country’s spy agency illegally carried out surveillance on Dotcom, a resident of the country, despite a law which prohibits monitoring citizens and residents.

October 10 – A U.S. federal judge rules that the U.S. government’s criminal case against Megaupload will proceed, while leaving open the option of dismissing the case at a later date on grounds including the possibility that delays in proceedings have denied Megaupload to its right to due process.

January 20, 2013 – Dotcom is due to launch his new cyberlocker, Mega.co.nz, whose encryption system is designed to offer water-tight privacy protection of user files. The launch comes as Dotcom and his colleagues await their extradition hearing, which has been delayed until August.

(Reporting by Naomi Tajitsu)

Internet News Headlines – Yahoo! News

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