Cameron warns companies must 'pay fair share' of taxes






DAVOS: British Prime Minister David Cameron warned Thursday that corporations must "pay their fair share" of taxes and said he would use Britain's G8 chairmanship to counter tax avoidance.

Speaking at the World Economic Forum in Davos, Cameron said too many global businesses were abusing tax schemes, after Britain last year announced a crackdown on multinationals such as Starbucks, Google and Amazon, claiming they are avoiding huge tax bills.

"When some businesses aren't seen to pay their taxes, that is corrosive to public trust," Cameron said in a speech to the global political and business elite.

"We want to use the G8 to drive a more serious debate on tax evasion and avoidance. This is an issue whose time has come," he said.

He said Britain would use its chairmanship this year of the Group of Eight rich nations to push for cross-border action on tax avoidance.

"Clamp down in one country and the travelling caravan of lawyers, accountants and financial gurus just moves on elsewhere. So we need to act together at the G8," Cameron said.

He insisted such moves were not anti-business.

"I believe in low taxes... I'm a low-tax Conservative. But I'm not a companies-should-pay-no-tax Conservative," Cameron said. "Individuals and businesses must pay their fair share."

Britain last month announced a campaign against "tax dodgers" and "cowboy advisers" to claw back £2 billion a year, after lawmakers alleged that multinationals were involved in "immoral" avoidance of tax.

German Chancellor Angela Merkel stressed that tax evasion and fraud was also an "enormously important issue" for the Group of 20 major economies.

"Every financial instrument, every financial product, every financial market, needs to be placed under regulation," said the chancellor.

"We are very far from that and I can only call on the financial industry to support us on this because another bubble that we create would bring another crisis for the global economy, which would be very difficult to overcome," she added.

Taxand, the world's largest independent global organisation of specialist tax advisors to multinational businesses, hit back saying that harmonisation of rules was not necessarily the best solution to tax fraud.

Multinationals should enter into talks with the relevant tax authorities "to obtain prior agreements for a particular initiative or investment," said Frederic Donnedieu de Vabres, the group's chairman.

"It is this, as opposed to a pursuit of harmonisation, that perhaps poses the best way forward," he added.

- AFP/jc



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AT&T CEO says he likes concept of handset financing



Verizon iPhone 4S, Virgin iPhone 4, and AT&T iPhone 4

The Verizon and AT&T iPhones carry hefty subsidies, while consumers share the burden with the Virgin iPhone.



(Credit:
Josh Miller/CNET)



AT&T has looked at the idea of making consumers pay for their own smartphones in monthly installments, according to CEO Randall Stephenson.


The idea of handset financing runs counter to the current model of subsidizing phones at a lower initial price in exchange for a higher monthly bill. Under handset financing, consumers would pay an upfront fee for the phone, and then steadily pay off the phone's cost over the next few months.


In exchange, the consumer would presumably get a lower rate on their phone bill, and could conceivably leave whenever they want after paying off the phone.



T-Mobile has already used it to great effect, and CEO John Legere has already hinted that the option would be available for the iPhone, which the carrier plans to offer later this year.


Stephenson, speaking to analysts during an earnings conference call today, said handset financing was an option he had looked at several times, and is one that he likes. He added he would monitor how the offer is received at T-Mobile before making any decisions.


The high monthly fee for contract service has many looking at no-contract options, something that AT&T was unable to address in the fourth quarter. While it added a net 780,000 contract subscribers in the period, it lost 166,000 prepaid customers.


T-Mobile and MetroPCS are expected to merge later this year, creating a more formidable opponent that will go after no-contract customers. Stephenson said he doesn't see much of an impact this year, but could see the combined company making moves that would require a response in 2014.


With the T-Mobile-MetroPCS and Sprint-SoftBank deals in the works, 2013 promises to be chaotic.


"In terms of industry dynamics, it should be an interesting year," he said. "It's kind of hard to estimate what's going to happen."


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A question of access? Mental health and gun violence

As President Obama faces opposition from gun rights advocates over his recent proposals to combat gun violence, the challenge he faces of fixing flaws in the mental health care system may prove just as difficult a battle.

Mr. Obama outlined plans aimed at preventing mass shootings and reducing broader gun violence in the United States last week, while signing 23 executive actions that did not require Congressional approval. Alongside proposed changes to gun laws including universal background checks, a stronger ban on assault weapons and new restrictions on ammunition and magazines, mental health emerged as a core feature of the president's plan to prevent further tragedies like the Dec. 14 shooting in Newtown, Conn.

The executive actions related to mental health included:

  • A letter to health care providers clarifying that no federal law prohibits them from reporting threats of violence to law enforcement authorities
  • Incentives for schools to hire school resource officers
  • A letter to state health officials clarifying the scope of mental health services that Medicaid plans must cover
  • Finalization of regulations clarifying essential health benefits and parity requirements within health insurance exchanges
  • A commitment to finalizing mental health parity regulations
  • The launch of a national dialogue led by the departments of Health and Human Services and Education on mental health
  • A Presidential Memorandum directing the Centers for Disease Control to research the causes and prevention of gun violence
  • Clarification that the new health care law does not prohibit doctors from asking their patients about guns in their homes

Noting that it was the first of its kind to focus on mental health since 2007 -- and long overdue -- Iowa Sen. Tom Harkin chaired a hearing of the Senate Health, Education, Labor and Pensions Committee Thursday.

Harkin laid out that while Newtown has brought the issue to the forefront of discussion, mental illness only accounts for a small proportion of violent crimes.

Experts estimate only a small percentage of violent crimes -- less than 5 percent -- are caused by mentally ill people.

"People with mental illness are much more likely to be the victims of violent crimes than perpetrators of violence," said Harkin, who called mental health care's shortcomings a public health problem.

A common theme throughout the hearing was to avoid stigmatizing people with mental illness while discussing gun violence and problems facing mental health care.


Play Video


Mental health expert: "We can and must intervene early"




Pamela S. Hyde, administrator for the government's Substance Abuse and Mental Health Services Administration (SAMHSA) laid out the scope of the mental health care problem during the hearing (video at left). Of the 45 million U.S. adults suffering from mental illness, only 38.5 percent receive the treatment they need, she said. For children, only one in five receive necessary treatment for diagnosable mental disorders. Despite showing symptoms, many children and adults experience significant delays getting into treatment. Hyde argues that if the system shifts to a focus on early intervention, more people can be helped.

"Cost, access and recognition of the problems are the primary reason this treatment is not received. However it doesn't have to be this way," said Hyde. "For most of these conditions, prevention works, treatment is effective and people do in fact recover."

Mental health care spending has been dramatically cut in recent years. A 2011 report from the National Alliance on Mental Health that looked at state-by-state mental health budgets reported $1.6 billion in state funding cuts from 2009 through 2012. Medicaid cuts at this time also negatively affected mental health care, the report showed. States are mulling increases in funding in light of the Newtown shooting.

And the health care system may only become more burdened in the near future: A July 2012 study by the Institute of Medicine, an advisory medical organization to the government, found an aging baby boomer population could cause a mental health care crisis by 2030, when the number of U.S. seniors is expected to double and necessary resources will be woefully lacking.




Play Video


The dangerous stigma of mental illness




Dr. Jeffrey Lieberman, chairman of psychiatry at Columbia University Medical Center in New York City, told CBS News senior correspondent John Miller in December that mental health care is a societal problem because the U.S. has not taken on the treatment of mental illness as effectively as it could.

"I think mental health is a big issue," Lieberman said at the time. "It's definitely related to the frequency of these seemingly senseless and wanton killings that occur. And the way it relates is that unfortunately, individuals who have specific forms of mental illness, if untreated, can be more prone to act in a way which is socially destructive and results in harm or killing like we saw happen."

Lieberman said a person who needs treatment for mental illness often faces barriers such as insurance coverage and accessibility to care, in addition to stigma -- while people getting treated for a disease like cancer face fewer "disincentives" to getting the best care.

Following the president's announcement, Lieberman told CBSNews.com that the new proposals are "on the right track" in terms of addressing issues in the mental health system, but much work remains to clarify how these actions will be implemented.

By getting more people with mental illness, impulse disorders and substance abuse issues into constant treatment, he said, they may be prevented from ever getting to a point where they are showing symptoms of mental illness -- and acting on violent impulses.

"Trying to say we should only do something when they get dangerous is very late in the process," said Lieberman.

Details on the president's proposals still need to be worked out, said Lieberman, who is also president-elect of the American Psychiatric Association. For example, the Mental Health Parity Act, which the president wanted to finalize in his executive actions, requires that mental health benefits are covered by insurance, similar to non-psychiatric health care benefits. However, the rules to determine what services are covered, how people become reimbursed and other stipulations have not been established, he said. The president also asked for clarification on Medicaid mental health services, which now typically covers people who have severe forms of mental illness. Lieberman argues policymakers may find that these services are not adequate, and broader services are needed.

Right now, doctors cannot provide mental health care services in what Lieberman refers to as a "financially viable way." He explains that patients seeking help for mental health may require a lot of support, not only from a doctor who may provide medication, but from therapists, case managers and social and vocational rehabilitation counselors who need to be more actively involved in the patient's lives. These team-based "multi-element treatment approaches" have been shown in studies to be effective, however these types of paid services just aren't available for people suffering from mental health problems. Meanwhile, a person with heart disease may see a cardiologist, a surgeon, a different doctor about stent management, a nutritionist for lifestyle tips, and other providers all covered by insurance.

"In mental health care it's the same thing -- you can't just see a psychiatrist and get a prescription," he said. "This is not just throwing different services at the problem, there's good evidence that these things work."

Dr. Jeffrey Swanson, a professor of psychiatry and behavioral sciences at Duke University School of Medicine, who has published several research papers on gun violence and mental health for more than a decade, agrees the current mental health system represents a complex public health problem facing the United States.

"The mental health system in the country, if you can call it that, is fragmented and grossly under-resourced," Swanson told CBSNews.com in an email. "It needs a lot of things, and more research into how to fix it -- at a time when there are more mentally ill people incarcerated than in hospitals -- is one of the needed things," he said.

A 2011 paper by Swanson published in Psychiatric Services examines the lack of data available on firearm use against strangers, and how it is impossible to reliably predict which specific individuals would engage in the most serious acts of violence.

But even if more CDC research stemming from the president's proposals strengthens the available data pool, Swanson argues these egregious acts of violence may still be impossible to predict.




Play Video


Can a mental disorder make someone violent?



"I think more access to evidence-based treatment and less access to guns, taken together, would have an impact on gun violence, at least on the margins. But prevent mass shootings? That's hard to say," Swanson said. "Those are almost inherently unpredictable, and often perpetrated by people with no gun-disqualifying mental health or criminal record -- until it's too late. Most of the measures in the President's proposal, even if enacted and implemented perfectly, would not necessarily have prevented the shootings in Tucson, Aurora, or Newtown."

While concerns persist on how the president's proposals will be implemented, the announcement was supported by various health organizations that had previously submitted recommendations to Vice President Joe Biden's White House Task Force on Gun Violence Prevention.

"NAMI applauds the President's plan for its significant provisions to strengthen and expand mental health services," Michael Fitzpatrick, executive director of the National Alliance on Mental Illness said in a statement following the proposals. "The mental health care system has long been broken. The challenge is not to fix it, but to build it anew, focusing on early screening, diagnosis, treatment and prevention. The President's plan takes important steps toward meeting that challenge."

Dr. Dilip V. Jeste, president of the American Psychiatric Association, added in statement, "We are heartened that the Administration plans to finalize rules governing mental health parity under the 2008 Mental Health Parity and Addiction Equity Act, the Affordable Care Act, and Medicaid. "We are glad that the President has clarified that doctors are not prohibited from asking their patients about guns in their homes. The APA has consistently advocated for such a position."


The American Academy of Pediatrics also offered its support.

"In addition to addressing firearm regulations, we must improve access to quality mental health care both to help prevent violent acts and to assist victims of trauma," AAP President Dr. Thomas K. McInerny, said in a statement following the proposals. "The AAP agrees with the President that we must improve the identification of mental illnesses through increased screening, address inadequate insurance coverage and high out-of-pocket costs that create barriers to access, strengthen the overall quality of mental health access, and improve and expand the Medicaid reimbursement policy to include mental health and developmental services.

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Exterminator Charged in Pa. Doctor's Murder













An exterminator named Jason Smith was arrested and charged today in the strangling and burning death of Philadelphia pediatrician Melissa Ketunuti.


Smith, 36, had been sent to Ketunuti's home on a service call where the two got into "some kind of argument" in Ketunuti's basement on Monday, Capt. James Clark of the Philadelphia police department said this morning.


"At her home they got into an argument. It went terribly wrong. He struck her, and knocked her to the ground," Clark said. "Immediately he jumped on top of her, started strangling her. She passed out, and then he set her body on fire."


Clark said Smith burned the woman's body "to hide evidence like DNA." He said "at some point, he bound her up." The doctor was found with her hands and feet tied behind her back.


The captain said that before today's arrest Smith's record consisted of only "minor traffic offenses."






Philadelphia Police Department/AP Photo











Pa. Doctor Killing: Person of Interest in Custody Watch Video











Philadelphia Doctor's Murder Leaves Police Baffled Watch Video





Police received a call from Ketunuti's dog-walker about the house fire around 12:30 p.m. Monday, and once inside found Ketunuti with her hands and feet bound. They believe Smith hit her and strangled her with a rope, causing her to pass out, and then bound her body and set fire to it in order to destroy evidence, including DNA evidence.


Ketunuti, 35, was fully clothed and police do not believe she was sexually assaulted.


She was a doctor at Children's Hospital of Philadelphia and had lived alone in the Graduate Hospital neighborhood of the city for about three years.


Clark said that homicide detectives scoured the neighborhood for surveillance videos from nearby stores and businesses, and through the video identified the suspect.


Smith was spotted on video getting out of the vehicle and following Ketunuti to her home. The man left her home after an hour and was seen on video circling her home.


Detectives drove to Clark's home in Levittown, Pa., outside of Philadelphia where he lives with a girlfriend and her child, on Wednesday night and brought him back to the Philadelphia police station.


A silver Ford truck was towed from Smith's home, which was the same truck spotted on surveillance video Monday in Ketunuti's neighborhood, sources told ABC News affiliate WPVI.


There, he gave statements that led police to charge him with the murders, Clark said.


Smith will face charges of murder, arson, and abuse of a corpse.


Ketunuti's hospital issued a statement Tuesday that she was "a warm, caring, earnest, bright young woman with her whole future ahead of her," adding that she will be deeply missed.


"[She was] super pleasant, really nice," one neighbor said. "Just super friendly."



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North Korea to target U.S. with nuclear, rocket tests


SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".


The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.


North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.


"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.


North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.


China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.


Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.


China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.


"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.


North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.


"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.


Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.


"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.


U.S. URGES NO TEST


Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.


"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.


"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."


The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.


A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.


North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons


North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.


According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.


North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.


North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.


The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.


The older Kim died in December 2011.


"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.


(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)



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'Avatar' director Cameron accused over screenplay






LOS ANGELES: A US judge ordered director James Cameron to hand over drafts of the screenplay for "Avatar" Wednesday, to lawyers for a man claiming he wrote the script on which the 3D blockbuster was based.

Eric Ryder is seeking compensation from Cameron and his production company Lightstorm Entertainment, claiming that the 2009 Oscar-nominated film is based on a story he wrote called "K.R.Z. 2068."

He filed a lawsuit in December 2011, saying he spent two years developing the story. On Wednesday Los Angeles Superior Court Judge Alan Rosenfield ordered Cameron's lawyers to turn over screenplay drafts.

"We have to be careful and sensitive about ideas and information," said the judge.

But he denied a request by Ryder's lawyers to grant access to the personal calendars of Cameron and Jon Landau, the chief operating officer of Cameron's Lightstorm Entertainment Inc.

Ryder's lawyer K. Andrew Kent said his legal team will also get access to backup tapes from computers used by Cameron.

"Avatar," about a paraplegic US marine with split loyalties after being sent to a distant world wanted for its mining potential, was seen as a breakthrough in the use of 3D technology, and has grossed more than US$2.7 billion worldwide.

- AFP/jc



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Apple shares fall to lowest point in a year after weak quarter



Apple investors wish shares were still moving higher, but that's definitely not the case in after-hours trading today.



(Credit:
James Martin/CNET)

Apple investors hoping for a nice stock boost following fiscal first-quarter earnings are likely pretty disappointed right now.

Shares, which have already been under pressure in recent weeks, slid about 10 percent in late trading after the Cupertino, Calif., electronics giants failed to post quarterly results that were as strong as hoped. Shares initially slid about 5 percent after the report, but losses accelerated during Apple's conference call.

Revenue for the first-quarter ended in January was weaker than analysts expected, as was the company's projections for second-quarter sales. And iPhone sales, while a record, also weren't quite enough to please investors.

All-in-all, the quarterly numbers likely won't assuage fears about slowing growth. Reports over the past few weeks have speculated that Apple is cutting component orders for its iPhone 5 due to slumping demand for the handset, and other reports have said Apple also is having trouble selling its
tablets.

Shares recently dropped 10 percent in after-hours trading to $461, their lowest point in about a year. They had risen as high as $705.07 in September.

Even as investors sold off shares, many analysts remained bullish on Apple. Jefferies analyst Peter Misek noted that the revenue projection for the current quarter was better than many feared, though the second-quarter per-share earnings results implied by the guidance could be a bit light. He added that iPhone shipments were particularly disappointing.

And Piper Jaffray analyst Gene Munster said that while iPhone sales were "mildly disappointing," he's still confident in the long-term prospects for iOS. He added that the company's revenue guidance for $41 billion to $43 billion was about in line with his expectations for $41 billion.

"Net-net, while we believe the iPhone number may appear disappointing, the slightly better guide implies that investors may not need to continue to worry about noise regarding continued iPhone build decreases for March," Munster said.

For the quarter ended in December, Apple posted revenue of $54.5 billion, and earnings of $13.1 billion, or $13.81 per share. That was just below the $54.7 billion and slightly above earnings per share of $13.44 Wall Street was expecting, but above the $52 billion and $11.75 per share Apple forecast for itself back in October.

Apple sold 47.8 million iPhones during the quarter, which ended in December. Sales of the
iPad came in at 22.9 million, and 4.1 million units for the
Mac. Customers bought 12.7 million iPods.

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Deep freeze to last into weekend in eastern U.S.

Updated 4:02 PM ET

PORTLAND, Maine A teeth-chattering cold wave with sub-zero temperatures was expected to keep its icy grip on much of the eastern U.S. into the weekend before seasonable temperatures bring relief.

A polar air mass that's been blamed for multiple deaths in the Midwest moved into the Northeast on Wednesday, prompting the National Weather Service to issue wind chill warnings across upstate New York and northern New England.

In northern Maine, the temperature dipped to as low as 36 below zero Wednesday morning. The weather service was calling for wind chills as low as minus-45.




Play Video


Frigid weather could precede Northeast snowstorm



Keith Pelletier, the owner of Dolly's Restaurant in Frenchville, said his customers are dressed in multiple layers of clothing, and they keep their cars running in the parking lot while eating lunch. It's so cold that even the snowmobilers are staying home, he said.

"You take the wind chill at 39 below and take a snowmobile going 50 mph, and you're about double that," he said. "That's pretty cold."

The Canadian air mass also has forced schools to close, delayed commuter trains and subways and kept plumbers busy with frozen pipes. A ski resort in New Hampshire shut down on Wednesday and Thursday because of unsafe ski conditions — a predicted wind chill of 48 degrees below zero.

The coldest temperatures were expected Wednesday and Thursday, after which conditions should slowly moderate before returning to normal levels, said John Koch, a meteorologist with the National Weather Service regional headquarters in Bohemia, N.Y. For the most part, temperatures have been around 10 to 15 degrees below normal, with windy conditions making it feel colder, he said.

For Anthony Cavallo, the cold was just another in a litany of big and small aggravations that began when Superstorm Sandy swept through his Union Beach, N.J., neighborhood and flooded his one-story house with 4 1/2 feet of water.

Still waiting for the go-ahead to rebuild, Cavallo and his family have been living in a trailer they purchased once it became clear they couldn't afford to rent.

Wednesday's frigid temperatures temporarily froze the trailer's pipes, which Cavallo's 14-year-old daughter discovered when she tried to take a shower at 4:30 a.m. Cavallo spent the morning thawing out the pipes and stuffing hay under the trailer to help insulate them.




Play Video


Deadly freeze grips Midwest




"Every day it's something, whether it's frozen pipes or getting jerked around for two months by insurance companies," the 48-year-old security system installer said. "I just kind of want to wake up one day and have no surprises."

In New York City, food vendor Bashir Babury contended with bone-numbing cold when he set up his cart selling coffee, bagels and pastries at 3 a.m. Wednesday. On the coldest of days, he wears layers of clothing and cranks up a small propane heater inside his cart.

"I put on two, three socks, I have good boots and two, three jackets," he said. "A hat, gloves, but when I'm working I can't wear gloves."

In New Jersey, some residents at a Jersey City apartment have complained about the lack of heat and hot water. One person told 1010 WINS' Steve Sandberg: "My apartment is terrible for this very cold. I have three heaters. It's terrible."

Another tenant commented: "If it's not one thing, it's the other. They cut out the gas then there's no hot water, if there's hot water, but then there's no heater. It's horrible."

In Pottsville, Pa., letter carrier Cheryl Vandermeer was stoic as she walked her route Wednesday with temperatures in the teens and wind chill in the single digits. She thankful she had a job that kept her moving, even if it was outside.

"I'm not just standing around," she said. "So for me it's cold, but it's not intolerable."

A little cold air couldn't keep Jo Goodwin, 64, of Bridgewater, N.H., off the slopes at Sugarloaf ski resort in Carrabassett Valley, Maine, where she was skiing Wednesday with her husband and her sister. The snow conditions were great and there were no lift lines.

To keep warm, she uses a toe warmer, a hand warmer, a face mask, extra underwear and an extra wool sweater. She was told the wind chill was minus 30 midway up the mountain and 50 below zero near the top.

"Sometimes," she said, "it's better not to know."

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Manti Te'o Tells Katie Couric His Emotions Were Real













Manti Te'o says that even though he was hoaxed by the supposed existence of a fake girlfriend, his inspirational story of playing through emotional pain "was all real and that's something that I can't fake."


Te'o made his comments to Katie Couric which will air the exclusive interview on Thursday.


Te'o, 21, has been alternately questioned and lampooned over his role in the hoax that led him and the public to believe that his girlfriend Lennay Kekua died of leukemia as Te'o led the Notre Dame football team to an undefeated season that culminated in the national championship game.


Te'o was also a finalist for the Heisman Trophy, which goes to the best college football player in the country. Couric asked the star linebacker whether the emotional "story line" of a girlfriend who died on the same day as his grandmother "helped propel you to second place in Heisman voting?"


"I don't know. I really don't know," Te'o replied.


See more exclusive previews tonight on "World News With Diane Sawyer" and "Nightline."


He was more certain, however, when Couric pressed him by pointing out that it had become "sort of a legend that you had endured this hardship and gone on to play your team and your school to victory... Did you feel like, wow, I'm getting a lot of attention for this?"


Te'o denied reveling in the attention.


Watch Katie Couric's interview with Manti Te'o and his parents Thursday. Check your local listings or click here for online station finder.






Lorenzo Bevilaqua/Disney-ABC











Manti Te'o Girlfriend Hoax: Could Alleged Scammer Be Charged? Watch Video









"I think for me the only thing I basked in was that I had an impact on people, that people turned to me and for inspiration and I think that was the only thing I focused on. You know my story I felt was a guy who in times of hardship and in times of trial really held strong to his faith, held strong to his family and I felt that that was my story," said Te'o, who is a Mormon.


Te'o said there was no acting in his emotions at the time when he thought the girl he called "Lala" had died of leukemia.


"What I went through was real. You know the feelings, the pain, the sorrow, that was all real and that's something that I can't fake," he said.


During the interview, Te'o said that he received a phone call on Dec. 6, apparently from the same woman he believed was dead, who told him she was alive. She said that her name was not Lennay Kekua, it was Leah. Teo has also said that woman sent him a different picture of herself.


Nevertheless, he again publicly mentioned his girlfriend, and her death, two days later on the day the Heisman trophy was to be awarded.


"You stuck to the script. And you knew that something was amiss, Manti," Couric said.


"Katie, put yourself in my situation. I, my whole world told me that she died on Sept. 12. Everybody knew that. This girl, who I committed myself to, died on Sept. 12," Te'o said.


"Now I get a phone call on Dec. 6, saying that she's alive and then I'm going be put on national TV two days later. And to ask me about the same question. You know, what would you do?" Te'o said.


Te'o was joined by his parents, Brian and Ottilia, in the interview.


"Now many people writing about this are calling your son a liar. They are saying he manipulated the truth, really for personal gain," Couric said to Te'o's father.


"People can speculate about what they think he is. I've known him 21 years of his life. And he's not a liar. He's a kid," Brian Te'o said with tears in his eyes.


Click here for a who's who in the Manti Te'o case.


Diane O'Meara told NBC's "Today" show Tuesday that she was used as the "face" of the Twitter account of Manti Te'o's online girlfriend without her knowledge or consent.


O'Meara said that Ronaiah Tuiasosopo used pictures of her without her knowledge in creating Kekua.


"I've never met Manti Te'o in my entire life. I've never spoke with him. I've never exchanged words with him," O'Meara said Tuesday.






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Cameron promises Britons contentious vote on EU future


LONDON (Reuters) - Prime Minister David Cameron on Wednesday promised Britons a vote on whether the country should stay in the European Union or leave, rattling London's biggest allies and some investors by raising the prospect of uncertainty and upheaval.


Cameron announced the referendum would be held by the end of 2017, provided he wins the next election, and said that while Britain did not want to retreat from the world, public disillusionment with the EU was at "an all-time high".


"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said in a speech, adding that his Conservative party would campaign for the 2015 election on a promise to renegotiate the terms of Britain's EU membership.


"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."


A referendum would mark the second time Britons have voted on the issue. In 1975, they decided by a wide margin to stay in the EU's predecessor, two years after the country had joined.


Domestically, Cameron stands on relatively firm ground. Most recent opinion polls have shown a slim majority would vote to leave the EU amid often bitter disenchantment about its influence on the British way of life. However, a poll this week showed a majority wanted to stay.


Cameron's position is fraught with uncertainty. He must come from behind to win the next election, secure support from the EU's 26 other states for a new British role, and hope those countries can persuade their voters to back the changes.


Critics say that in the long run-up to a vote, Britain would slip into a dangerous and damaging limbo that could leave the country adrift or pushed out of the EU.


The United States, a close ally, is also uneasy about the plan, believing it will dilute Britain's international clout. President Barack Obama told Cameron by phone last week that Washington valued "a strong UK in a strong European Union".


Some of Britain's European partners were also anxious and told Cameron on Wednesday his strategy reflected a selfish and ignorant attitude. However, Angela Merkel, the leader of EU paymaster Germany, was quick to say she was ready to discuss Cameron's ideas.


French Foreign Minister Laurent Fabius was less diplomatic, quipping: "If Britain wants to leave Europe we will roll out the red carpet for you," echoing Cameron, who once used the same words to invite rich Frenchmen alienated by high taxes to move to Britain.


Billed by commentators as the most important speech of Cameron's career, his referendum promise ties him firmly to an issue that has bedeviled a generation of Conservative leaders.


In the past, he has been careful to avoid bruising partisan fights over Europe, an issue that undid the last two Conservative prime ministers, John Major and Margaret Thatcher.


His speech appeared to pacify a powerful Eurosceptic wing inside his own party, but deepen rifts with the Liberal Democrats, the junior partners in his coalition. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.


Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.


"BREXIT"?


Cameron said he would seek to claw back powers from Brussels, saying later in parliament that when it came to employment, social and environmental legislation "Europe has gone far too far".


But such a claw back - the subject of an internal audit to identify which powers he should target for repatriation - is likely to be easier said than done.


If Cameron wins the election but then fails to renegotiate Britain's membership of the EU, a 'Brexit' could loom.


Business leaders have warned that years of doubt over Britain's EU membership would damage the $2.5 trillion economy and cool the investment climate.


"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos. "This is a political decision. This is not an economic decision. This isn't good news. You added another reason why people will postpone investment decisions."


Cameron has been pushed into taking such a strong position partly by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in the opinion polls, mainly at the expense of the Conservatives.


"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.


Eurosceptics in Cameron's party, who have threatened to stir up trouble for the premier, were thrilled by the speech.


Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".


Whether Cameron holds the referendum remains as uncertain as the Conservatives' chances of winning the election. They trail the opposition Labour party in opinion polls, and the coalition is grappling with a stagnating economy as it pushes through unpopular public spending cuts to reduce a large budget deficit.


Labour leader Ed Miliband said on Wednesday his party did not want an in/out referendum.


EU REFORM


Cameron said he would campaign for Britain to stay in the EU "with all my heart and soul", provided he secured the reforms he wants. He made clear the EU must become less bureaucratic and focus more on trade deals. It was riskier to maintain the status quo than to change, he said.


"The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.


Cameron said the euro zone debt crisis was forcing the bloc to change and that Britain would fight to make sure new rules were fair to the 10 countries that don't use the common currency, of which Britain is the largest.


Democratic consent for the EU in Britain was now "wafer thin", he said. "Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union," said Cameron. "But the question mark is already there: ignoring it won't make it go away."


A YouGov opinion poll on Monday showed that more people wanted to stay in the EU than leave it, the first such result in many months. But it was unclear whether that result was a blip.


Paul Chipperfield, a 53-year-old management consultant, said he liked the strategy. "Cameron's making the right move because I don't think we've had enough debate in this country," he told Reuters. "We should be part of the EU but the EU needs to recognize that not everybody's going to jump on the same bandwagon."


Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success".


"I don't want Britain to leave the EU," he told parliament later. "I want Britain to reform the EU."


In the 1975 referendum, just over 67 percent voted to stay inside with nearly 33 percent against.


(Additional reporting by Paul Taylor in Davos, Alexandra Hudson in Berlin and Brenda Goh in London; Editing by Guy Faulconbridge and David Stamp)



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