Northern Irish fighting rages on as rioters branded "a disgrace"

 Northern Irish police came under attack by pro-British loyalists on Friday as the province's first minister branded rioters "a disgrace" and said they were playing into the hands of rival militant nationalists.
Rioting began a month ago after a vote by mostly nationalist pro-Irish councilors to end the century-old tradition of flying the British flag from Belfast City Hall every day unleashed the most sustained period of violence in the city for years.
On Friday, police said officers came under attack in the east of the city by masked mobs hurling petrol bombs, rocks and fireworks.
A number of officers were injured, several arrests were made and police deployed water cannon to control a crowd that at one point swelled to 400 protesters.
First Minister Peter Robinson, leader of the pre-eminent Protestant group, the Democratic Unionist Party, called the decision to take down the flag "ill-considered and provocative" but said the attacks must end.
"The violence visited on (police) is a disgrace, criminally wrong and cannot be justified," said Robinson, whose party shares power with deputy first minister and ex-Irish Republican Army commander Martin McGuinness' Sinn Fein Party
"Those responsible are doing a grave disservice to the cause they claim to espouse and are playing into the hands of those dissident groups who would seek to exploit every opportunity to further their terror aims."
More than 40 police officers were injured in the initial wave of fighting, which stopped over Christmas, only to resume on Thursday when a further 10 police officers were hurt as the community divisions were exposed once more.
At least 3,600 people were killed during Northern Ireland's darkest period as Catholic nationalists seeking union with Ireland fought British security forces and mainly Protestant loyalists determined to remain part of the United Kingdom.
Anti-British Catholic dissident groups, responsible for the killing of three police officers and two soldiers since 2009, have so far not reacted violently to the flag protests, limiting the threat to Northern Ireland's 15-year-old peace.
Another demonstration calling for reinstating the Union Flag will be held outside City Hall on Saturday while some loyalists have pledged to hold a protest in Dublin the following Saturday.

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U.N. Security Council voices worry about Central African Republic rebels

UNITED NATIONS (Reuters) - The U.N. Security Council voiced alarm on Friday at an advance by rebels in Central African Republic that has brought them within striking distance of the mineral-rich nation's capital, and renewed its call for a negotiated solution to the crisis.
Central African Republic President Francois Bozize will refuse to leave power during talks with the Seleka rebel alliance, his spokesman said on Thursday, rejecting the insurgents' main demand and raising the prospect of a return to fighting.
The rebel alliance, which has accused Bozize of reneging on a past peace deal, closed in on the capital Bangui this week before bowing to international pressure to start negotiations.
"The members of the Security Council expressed their concern regarding the 'Seleka' coalition's advance toward Bangui since ... December 27," the council said in a statement.
The 15-nation body also urged "an end to Seleka's military offensive, and said the current situation in CAR cannot be resolved militarily."
"They called again on all parties to seek a peaceful solution by engaging constructively, without preconditions, and in good faith in the negotiations to be held in Libreville beginning January 8 under the auspices of the Economic Community of the Central African States (ECCAS)," the council said.
The advance by Seleka, an alliance of five armed groups, was the latest in a series of revolts in a country at the heart of one of Africa's most turbulent regions. The country remains plagued by poverty and underdevelopment despite its reserves of diamonds, gold and other minerals.
The council also repeated its previous demands that Seleka "cease all hostilities, withdraw from seized cities, and cease attempts to advance further."
It voiced concern about "reports of the targeting of ethnic minorities, arrests, detentions, looting, as well as recruitment and use of children in armed conflict in CAR."
The Security Council urged "all parties to refrain from any acts of violence against civilians and to respect human rights, and emphasized that those responsible for such violations should be held accountable," according to the statement.

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India gang-rape victim's friend recounts attack

NEW DELHI (AP) — The companion of a woman who was gang-raped aboard a moving bus in India's capital said Friday that after being attacked for 2 1/2 hours, the pair was thrown on the side of the road, where passersby ignored them and police debated jurisdiction issues before helping them.
The male companion, who has not been named, made the comments in a TV interview, the first time he had recounted details of the Dec. 16 attack in New Delhi.
The attack has outraged Indians and led to calls for tougher rape laws and reforms of a police culture that often blames rape victims and refuses to file charges against accused attackers. The nation's top law enforcement official said the country needs to crack down on crimes against women with "an iron hand."
The 23-year-old woman died last weekend from massive internal injuries suffered during the attack. Authorities charged five men with her murder and rape and were holding a sixth suspect believed to be a juvenile. A hearing in the case was scheduled for Saturday.
The woman and her companion had just finished watching the movie "Life of Pi" at an upscale mall and were looking for a ride home. An autorickshaw driver declined to take them, so they boarded the private bus with the six assailants inside, the companion told the Indian TV network Zee TV.
Authorities have not named the man because of the sensitivity of the case. The TV station also declined to give his name, although it did show his face during the interview. The man has a broken leg and was sitting in a wheelchair during the interview.
After a while, the men on the bus starting harassing and attacking the pair, he said.
"I gave a tough fight to three of them. I punched them hard. But then two others hit me with an iron rod," he said. The woman tried to call the police using her mobile phone, but the men took it away from her, he said. They then took her to the rear seats of the bus and raped her.
"The attack was so brutal I can't even tell you ... even animals don't behave like that," the man said.
Afterward, he overheard some of the attackers saying she was dead, he said.
The men then dumped their bleeding and naked bodies under an overpass. The woman's companion waved to passersby on bikes, in autorickshaws and in cars for help.
"They slowed down, looked at our naked bodies and left," he said. After about 20 minutes, three police vans arrived and the officers began arguing over who had jurisdiction over the crime as the man pleaded for clothes and an ambulance, he said.
The man said he was given no medical care. Instead, he spent four days at the police station helping them investigate the crime. He said he visited his friend in the hospital, told her the attackers were arrested and promised to fight for her.
"She has awakened us all by her courage," he said. "People should move ahead in the struggle to prevent a similar crime happening again as a tribute to her."
On Friday, Home Minister Sushilkumar Shinde said crimes against women and marginalized sections of society are increasing, and it is the government's responsibility to stop them.
"This needs to be curbed by an iron hand," he told a conference of state officials from across India that was called to discuss how to protect women.
He called for changes in the law and the way police investigate cases so justice can be swiftly delivered. Many rape cases are bogged down in India's overburdened and sluggish court system for years.
"We need a reappraisal of the entire system," he said.
In the wake of the rape, several petitioners appealed to the Supreme Court to take an active role in the issue of women's safety.
On Friday, the court dismissed a petition asking it to suspend Indian lawmakers accused of crimes against women, saying it doesn't have jurisdiction, according to the Press Trust of India. The Association for Democratic Reforms, an organization that tracks officials' criminal records, said six state lawmakers are facing rape prosecutions and two national parliamentarians are facing charges of crimes against women that fall short of rape.
However, the court did agree to look into the widespread creation of more fast-track courts for accused rapists across the country.

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Venezuela VP: Chavez could be sworn in by court

CARACAS, Venezuela (AP) — Venezuela's vice president said Friday that President Hugo Chavez could be sworn in by the Supreme Court later on if he's not able to take the oath of office next week before lawmakers because of his struggle with cancer.
Vice President Nicolas Maduro made the comment in a televised interview on Friday night, dismissing the argument by some opposition leaders that new elections must be called if Chavez doesn't take office as scheduled on Thursday. His stance appeared likely to generate friction between the government and opposition over the legality of putting off the swearing-in, which the constitution says should occur on Thursday before the National Assembly.
Maduro says Chavez, as a re-elected president, remains in office beyond the inauguration date stipulated in the constitution, and could be sworn in if necessary before the Supreme Court at a date to be determined.
"The formality of his swearing-in can be resolved before the Supreme Court of Justice, at the time (the court) deems in coordination with the head of state, Commander Hugo Chavez," Maduro said.
As for the opposition, Maduro said, "they should respect our constitution." The vice president held up a small copy of the constitution and read aloud passages relating to such procedures.
Opposition leaders have demanded that the government provide more specific information about Chavez's condition, and say that if the president doesn't return to Venezuela by inauguration day, the president of the National Assembly should take over the presidency on an interim basis. But Maduro echoed other Chavez allies in suggesting the inauguration date is not a hard deadline, and that the president should be given more time to recover from his cancer surgery if needed.
"Maduro's comments are not surprising. The government holds all the cards in the current situation, particularly given the compassion for Chavez's serious illness. It has interpreted the constitution loosely, to its own political advantage," said Michael Shifter, president of the Inter-American Dialogue think tank in Washington. "In this way Maduro is able to buy some time, assert his authority, and rally support within Chavismo. He puts the opposition on notice and throws it off balance."
As for Chavez, Maduro reiterated that the president is fighting a "complex" health battle but expressed hope that eventually "we'll see him and we'll hear him."
"He has a right to rest and tranquility, and to recuperate," Maduro said on state television, speaking with Information Minister Ernesto Villegas.
The Venezuelan Constitution says the presidential oath should be taken Jan. 10 before the National Assembly. It also says that if the president is unable to be sworn in before the National Assembly, he may take the oath office before the Supreme Court, and some legal experts have noted that the sentence mentioning the court does not mention a date.
The constitution says that if a president-elect dies or is declared unable to continue in office, presidential powers should be held temporarily by the president of the National Assembly and a new election should be held within 30 days.
Venezuelan lawmakers will meet Saturday in a session that could shed light on what steps may be taken if Chavez is too sick to be sworn in for a new term next week.
Legislators will choose a president, two vice presidents and other leaders of the National Assembly, which is controlled by a pro-Chavez majority. Whoever is elected National Assembly president could eventually end up being the interim president of Venezuela under some circumstances.
Brewing disagreements over how to handle a possible transition of power could be aired at the session, coming just five days before the scheduled inauguration day specified in the constitution.
The government revealed this week that Chavez is fighting a severe lung infection and receiving treatment for "respiratory deficiency" more than three weeks after undergoing cancer surgery in Cuba. The announcement suggests a deepening crisis for the 58-year-old president and has fed speculation that he likely is not well enough to travel to Caracas for the inauguration.
But Maduro criticized rumors surrounding Chavez's condition, saying: "He has a right to his privacy, and to recover."
National Assembly President Diosdado Cabello called on Chavez backers to show up for the legislative session and demonstrate their support.
"This National Assembly is revolutionary and socialist. It will remain beside the people and our commander," Cabello said in one of several messages on his Twitter account. "If the opposition thinks it will find a space in the National Assembly to conspire against the people, it's mistaken once again. It will be defeated."
Chavez hasn't spoken publicly or been seen since his Dec. 11 operation in Cuba. In a Thursday night update, the government for the first time described the president's respiratory infection as "severe," the strongest confirmation yet that Chavez is having serious trouble breathing after days of rumors about his condition worsening.
The government's characterization raised the possibility that Chavez might be breathing with the assistance of a machine. But the government did not address that question and didn't give details of the president's treatment.
Independent medical experts consulted by The Associated Press said the government's account indicated a potentially dangerous turn in Chavez's condition, but said it's unclear whether he is attached to a ventilator.
Dr. Gustavo Medrano, a lung specialist at the Centro Medico hospital in Caracas, said he has seen similar cases in cancer patients who have undergone surgery, and "in general it's very bad, above all after a surgery like the one they performed on him."
"I don't know the magnitude of the infection he has, how much of his lungs have been compromised, how much other organs are being affected. That's not clear," Medrano said.
"What's most likely is that he's on mechanical ventilation," Medrano added. However, he said, while respiratory deficiency means there is an abnormally low concentration of oxygen in the blood, depending on the severity it can be treated in various ways.
Dr. Michael Pishvaian, an oncologist at Georgetown University's Lombardi Cancer Center in Washington, agreed that such respiratory infections can run the gamut from "a mild infection requiring antibiotics and supplemental oxygen to life-threatening respiratory complications."
"It could be a very ominous sign," Pishvaian said. He said it's possible Chavez could be on "life support," but added it's impossible to be sure without more details.
Opposition leaders have blamed vague information coming from the government for the persistent rumors about Chavez's condition, and demanded a full medical report.
The Venezuelan newspaper El Nacional criticized what it called an "information vacuum" in an editorial on Friday, saying Venezuelans are in the dark because "no one speaks clearly from the government." The newspaper called the situation reminiscent of secrecy that surrounded the deaths of Josef Stalin in the former Soviet Union and Mao Zedong in China.
State television repeatedly played video of a song in which rappers encourage Venezuelans to pray, saying of Chavez: "You will live and triumph." A recording of a speech by Chavez appears during the song, saying: "I will be with you always!"
Chavez has undergone four cancer-related surgeries since June 2011 for an undisclosed type of pelvic cancer. He also has undergone chemotherapy and radiation treatment.
He was re-elected in October to another six-year term, and two months later announced that the cancer had returned. Chavez said before the operation that if his illness prevented him from remaining president, Maduro should be his party's candidate to replace him in a new election.
This week, Cabello and the president's elder brother Adan joined a parade of visitors who saw Chavez in Havana, and then returned to Caracas on Thursday along with Maduro.
Brazil's state-run Agencia Brasil news agency reported Friday that President Dilma Rousseff's top international adviser, Marco Aurelio Garcia, made a one-day visit to Cuba and spoke with Venezuelan and Cuban officials about Chavez's health. It was unclear if Garcia actually saw Chavez, or what day he visited Cuba.
On the streets of Caracas, some of Chavez's supporters say they're still holding out hope he can recover.
"He's the only leader of the revolution," said Miriam Bolivar, who belongs to a grassroots pro-Chavez group. "We can't imagine life without him. He's our life. This is one more battle and we have faith that he'll come out it unscathed once again.

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Chavez swearing-in can be delayed: Venezuelan VP

 President Hugo Chavez's formal swearing-in for a new six-year term scheduled for January 10 can be postponed if he is unable to attend due to his battle to recover from cancer surgery, Venezuela's vice president said on Friday.
Nicolas Maduro's comments were the clearest indication yet that the Venezuelan government is preparing to delay the swearing-in while avoiding naming a replacement for Chavez or calling a new election in the South American OPEC nation.
In power since 1999, the 58-year-old socialist leader has not been seen in public for more than three weeks. Allies say he is in delicate condition after a fourth operation in two years for an undisclosed form of cancer in his pelvic area.
The political opposition argues that Chavez's presence on January 10 in Cuba - where there are rumors he may be dying - is tantamount to the president's stepping down.
But Maduro, waving a copy of the constitution during an interview with state TV, said there was no problem if Chavez was sworn in at a later date by the nation's top court.
"The interpretation being given is that the 2013-2019 constitutional period starts on January 10. In the case of President Chavez, he is a re-elected president and continues in his functions," he said.
"The formality of his swearing-in can be resolved in the Supreme Court at the time the court deems appropriate in coordination with the head of state."
In the increasing "Kremlinology"-style analysis of Venezuela's extraordinary political situation, that could be interpreted in different ways: that Maduro and other allies trust Chavez will recover eventually, or that they are buying time to cement succession plans before going into an election.
Despite his serious medical condition, there was no reason to declare Chavez's "complete absence" from office, Maduro said. Such a declaration would trigger a new vote within 30 days, according to Venezuela's charter.
RECOVERY POSSIBLE?
Chavez was conscious and fighting to recover, said Maduro, who traveled to Havana to see his boss this week.
"We will have the Commander well again," he said.
Maduro, 50, whom Chavez named as his preferred successor should he be forced to leave office, said Venezuela's opposition had no right to go against the will of the people as expressed in the October 7 vote to re-elect the president.
"The president right now is president ... Don't mess with the people. Respect democracy."
Despite insisting Chavez remains president and there is hope for recovery, the government has acknowledged the gravity of his condition, saying he is having trouble breathing due to a "severe" respiratory infection.
Social networks are abuzz with rumors he is on life support or facing uncontrollable metastasis of his cancer.
Chavez's abrupt exit from the political scene would be a huge shock for Venezuela. His oil-financed socialism has made him a hero to the poor, while critics call him a dictator seeking to impose Cuban-style communism on Venezuelans.
Should Chavez leave office, a new election is likely to pitch former bus driver and union activist Maduro against opposition leader Henrique Capriles, the 40-year-old governor of Miranda state.
Capriles lost to Chavez in the October presidential election, but won an impressive 44 percent of the vote. Though past polls have shown him to be more popular than all of Chavez's allies, the equation is now different given Maduro has received the president's personal blessing - a factor likely to fire up Chavez's fanatical supporters.
His condition is being watched closely by Latin American allies that have benefited from his help, as well as investors attracted by Venezuela's lucrative and widely traded debt.
"The odds are growing that the country will soon undergo a possibly tumultuous transition," the U.S.-based think tank Stratfor said this week.

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Fed minutes short-circuit Wall Street rally

NEW YORK (Reuters) - Stocks dipped on Thursday after signs the Federal Reserve has growing concern about its highly stimulative monetary policy, giving investors reason to pull back after a two-day rally.
The minutes from the Fed's December policy meeting, released on Thursday, showed increasing reticence about adding to the central bank's $2.9 trillion balance sheet, which it expanded sharply in response to the financial crisis and recession of 2007-2009.
Some policymakers thought asset buying should be slowed or stopped before the end of 2013 while others highlighted the need for further stimulus. The Fed's policy of easy credit has helped push the S&P 500 to a 13.4 percent gain in 2012. Ending that policy would remove an incentive for investors to purchase riskier assets like stocks.
"The surprise was the changes to duration and extent of that program in 2013, but given the tone in previous Fed meeting minutes, it should not have been an entire surprise," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.
Despite the concerns about the effects of its asset purchases, the Fed look set to continue its open-ended stimulus program for now.
Stocks pushed the S&P 500 index 4.3 percent higher in the previous two sessions. On Thursday investors turned their focus to coming battles in Congress, including the likelihood of bitter fights over budget cuts and raising the federal debt ceiling.
"We were definitely technically extended and ripe for a little bit of a consolidation and today is very orderly - traders and investors are still trying to digest the language and the details from the 2012 taxpayer act," Dickson said.
The Dow Jones industrial average <.dji> dropped 21.19 points, or 0.16 percent, to 13,391.36. The Standard & Poor's 500 Index <.spx> shed 3.05 points, or 0.21 percent, to 1,459.37. The Nasdaq Composite Index <.ixic> lost 11.70 points, or 0.38 percent, to 3,100.57.
Economic data showed U.S. private-sector employers shrugged off a looming budget crisis and stepped up hiring in December, offering further evidence of underlying strength in the economy as 2012 ended.
The government's broader monthly payrolls report, due on Friday, is expected to show the economy created 150,000 jobs compared with 146,000 in November, according to a Reuters poll. The U.S. unemployment rate is seen holding steady at 7.7 percent.
Retailers advanced after several major companies in the sector beat expectations of modest sales increases in December, with the S&P retail index <.spxrt> up 0.4 percent.
Shares in Costco Wholesale Corp rose 1 percent to $102.49 after the company reported a better-than-expected 9 percent rise in December sales at stores open at least a year.
Gap Inc stock climbed 2.3 percent to $32.09 following news that the retailer will buy women's fashion boutique Intermix Inc, the Wall Street Journal reported.
Family Dollar Stores Inc stumbled 13 percent to $55.74 on the company's report of lower-than-expected quarterly profit.
Volume was relatively strong, with about 6.68 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly above the 2012 daily average of 6.42 billion.
Advancing stocks outnumbered declining ones on the NYSE by 1,692 to 1,321, while on the Nasdaq, decliners beat advancers 1,287 to 1,187.

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Asian shares drop on Fed minutes, dollar extends gain

 Asian shares fell on Friday, tracking overnight weakness in global equities, but the dollar gained as U.S. debt yields rose after several Federal Reserve officials expressed concerns about continuing to expand stimulative bond buying.
Minutes from the Fed's December policy meeting released on Thursday showed some voting members of the Federal Open Market Committee were increasingly concerned about the potential risks of the Fed's asset purchases on financial markets, even if it look set to continue an open-ended stimulus program for now.
The Fed's asset buying policy has been a crucial factor underpinning investor risk appetite and supporting global equities, so the more hawkish Fed minutes unnerved financial markets on Thursday, driving benchmark U.S. Treasury yields up to a near eight-month high and weighing on equities and oil, while bolstering the dollar.
The dollar extended gains early in Asia on Friday, hitting its highest since July 2010 against the yen at 87.78 while the euro fell to a three-week low of $1.3022. The U.S. dollar <.dxy> hit a near four-week high against a basket of major currencies on Thursday.
"The minutes have added a fresh degree of uncertainty into the investment climate, which is likely to mean a steeper yield curve. But equity investors should take heart from the fact that the Fed's perception is qualified on an improving economy," Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York, said in a note to clients.
MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> fell 0.4 percent, after scaling its highest since August 2011 on Thursday.
Australian shares <.axjo> slipped 0.5 percent, with investors pulling back after a sharp two-day rally which took shares to their highest in more than 19 months on Thursday.
"U.S. equities were due for a correction at any rate ... and the same is true of the KOSPI. Investors would do well to buy while shares are easing," Lee Seung-woo, an analyst at KDB Daewoo Securities, said of South Korean shares <.ks11>, which opened down 0.1 percent.
Japan's benchmark Nikkei stock average <.n225> opened sharply higher, up 2 percent, to its highest since March 2011 on the back of the tumbling yen. Japanese markets were closed from December 31 to January 3 for the new year's holidays. The Nikkei ended 2012 with the sharpest yearly gain since 2005. <.t>
U.S. lawmakers earlier this week narrowly avoided falling off a "fiscal cliff" of automatic higher taxes and spending cuts, which had been set to kick in at the start of the year and threatened to derail the U.S. economy, providing an immediate boost for financial markets.
But U.S. President Barack Obama and congressional Republicans face tough talks on spending cuts and an increase in the nation's debt limit as the hard-fought deal to avert the fiscal cliff covered only taxes and delayed decisions on expenditures until March 1.
Investor sentiment was, on the other hand, supported by recent data showing activity in China's services sector and at U.S. factories expanded in December, which brightened the outlook for global growth.
The U.S. jobs market remained on a recovery track, with data on Thursday showing U.S. private-sector employers shrugged off the budget wrangling and stepped up hiring in December, heightening hopes for a strong nonfarm payrolls report due later on Friday.
The U.S. economy likely added 150,000 jobs in December, according to a Reuters survey of economists, up from 146,000 in November. The unemployment rate is expected to hold steady at 7.7 percent.
Resolution of the U.S. fiscal cliff crisis could spell trouble for some Asian assets that are coming off a stellar 2012 as investors could start to shift some money out of overpriced Asian investments in favour of the U.S. on a view that the fiscal deal manages to avert a U.S. recession and so boosts the prospects for American stocks.
U.S. crude inched down 0.2 percent to $82.78 a barrel.

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Wal-Mart appoints Lev Khasis to develop new store concepts

The world's largest retailer Wal-Mart Stores Inc appointed Lev Khasis as president and chief executive of New Formats for Walmart International, a company spokesperson said.
Khasis, who joined Wal-Mart in 2011 as senior vice-president, will focus on developing new store concepts that can be deployed across markets, Wal-Mart spokesperson Kevin Gardner said in an e-mail statement.
Khasis built up Russia's biggest food retailer X5 through acquisitions into a Russian market leader until his resignation in 2011.
Wal-Mart has more than 4,480 stores in the United States, including large supercenters, discount stores, grocery stores, small format stores and Sam's Club warehouse club stores.

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Congress members seek investigation of Shell barge

 Calls for federal scrutiny of Royal Dutch Shell PLC drilling operations in Arctic waters swelled Thursday with a request for a formal investigation by members of Congress.
The House Sustainable Energy and Environment Coalition called on the Interior Department and the Coast Guard to jointly investigate the New Year's Eve grounding of the Shell drilling vessel Kulluk on a remote Gulf of Alaska island, and a previous incident connected to Arctic offshore drilling operations in 2012.
The coalition is made up of 45 House Democrats.
"The recent grounding of Shell's Kulluk oil rig amplifies the risks of drilling in the Arctic," they said in a joint statement. "This is the latest in a series of alarming blunders, including the near-grounding of another of Shell's Arctic drilling rigs, the 47-year-old Noble Discoverer, in Dutch Harbor and the failure of its blowout containment dome, the Arctic Challenger, in lake-like conditions."
The coalition believes these "serious incidents" warrant thorough investigation, the statement said.
Shell Alaska spokesman Curtis Smith said in an email that the company is in full support of, and is providing resources for, the investigation of the grounding by the Unified Incident Command, made up of federal, state and company representatives. Smith said the findings will be available to the public.
Shell incident commander Sean Churchfield said at an Anchorage news conference later Thursday that two more salvage crews had boarded the vessel and found damage to emergency and service generators, and to the Kulluk's upper deck.
The vessel is upright and stable, and the Coast Guard has said there is no indication of a fuel leak.
"Findings include some wave damage to the top sides of the vessel, and a number of watertight hatches have been breached, causing water damage inside," Churchfield said. The team has secured some of the open hatches, he said.
Damage to the generators means salvagers may have to bring external generators on board or work without power, Churchfield said. He confirmed salvagers heard "breathing" from a vent but said they couldn't immediately determine whether it was a breech or natural venting.
Salvage is in the assessment stage, Churchfield noted, and options are being developed. He wouldn't speculate on whether the Kulluk is seaworthy or when it might be moved.
An emergency towing system was deposited on deck, and spill response equipment has been staged.
"I want to reiterate there is no limitation on resources, personnel or equipment being deployed as part of the response and recovery activities," Churchfield said.
Coast Guard Capt. Paul Mehler said the top concern remains the safety of responders working in what continues to be hazardous flying and marine conditions.
The Kulluk is a non-propelled, 266-foot diameter barge with a reinforced funnel-shaped hull designed to operate in ice. It is carrying more than 140,000 gallons of diesel and about 12,000 gallons of lube oil and hydraulic fluid. Centered on the vessel is a 160-foot derrick. It drilled during the short open-water season in the Beaufort Sea.
A 360-foot anchor handler, the Aiviq, was towing the Kulluk from Dutch Harbor to Seattle last week for maintenance and upgrades when the tow line snapped south of Kodiak. Lines were reattached at least four times but could not be maintained. A lone tugboat still attached Monday night in a vicious storm couldn't control the vessel and cut it loose as it neared land.
After the grounding, critics quickly asserted it has foreshadowed what will happen north of the Bering Strait if drilling is allowed.
Environmentalists for years have said conditions are too harsh and the stakes too high to allow industrial development in the Arctic, where drilling sites are 1,000 miles or more from the closest Coast Guard base.
Two national organizations kept up the drumbeat Thursday by calling for a halt to all permitting for Arctic offshore drilling in the wake of the grounding.
"This string of mishaps by Shell makes it crystal clear that we are not ready to drill in the Arctic," said Chuck Clusen of the Natural Resources Defense Council. "Shell is not Arctic-ready. We have lost all faith in Shell, and they certainly don't have any credibility left."
Lois Epstein, a civil engineer who works for The Wilderness Society in Anchorage, said Shell has made troubling, non-precautionary decisions that put workers and the Coast Guard at risk.
"These ongoing technical and decision-making problems and their enormous associated costs and risks taken by our military personnel once there were problems should lead the federal government to reassess its previous permitting decisions regarding Shell," Epstein said.
In the short term, she said, damage to the Kulluk may prevent it from being ready for the 2013 open water season. Besides drilling in the Beaufort, the barge was supposed to be on hand for drilling a relief well if Shell's drill vessel in the Chukchi Sea, the Noble Discoverer, experienced a wellhead blowout and was damaged, Epstein said.
Shell has maintained it has taken a heads-up approach to anticipating and reacting to problems.
Shell Alaska spokesman Smith said Wednesday the Kulluk had been towed more than 4,000 miles and had previously experienced similar storm conditions. Shell staged additional towing vessels along the route in case there were problems, he said.
"We know how to work in regions like this," Smith said. "Having said that, when flawless execution does not happen, you learn from it, and we will.

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Google emerges from FTC probe relatively unscathed

 Google has settled a U.S. government probe into its business practices without making any major concessions on how the company runs its Internet search engine, the world's most influential gateway to digital information and commerce.
Thursday's agreement with the Federal Trade Commission covers only some of the issues raised in a wide-ranging antitrust investigation that could have culminated in a regulatory crackdown that re-shapes Internet search, advertising and mobile computing.
But the FTC didn't find any reason to impose radical changes, to the relief of Google and technology trade groups worried about overzealous regulation discouraging future innovation. The resolution disappointed consumer rights groups and Google rivals such as Microsoft Corp., which had lodged complaints with regulators in hopes of legal action that would split up or at least hobble the Internet's most powerful company.
Google is still trying to settle a similar antitrust probe in Europe. A resolution to that case is expected to come within the next few weeks.
After a 19-month investigation, Google Inc. placated the FTC by agreeing to a consent decree that will require the company to charge "fair, reasonable and non-discriminatory" prices to license hundreds of patents deemed essential to the operations of mobile phones, tablet computers, laptops and video game players.
The requirement is meant to ensure that Google doesn't use patents acquired in last year's $12.4 billion purchase of Motorola Mobility to thwart competition from mobile devices running on software other than Google's Android system. The products vying against Android include Apple Inc.'s iPhone and iPad, Research in Motion Ltd.'s BlackBerry and Microsoft's Windows software.
Google also promised to exclude, upon request, snippets copied from other websites in capsules of key information shown in response to search requests. The company had insisted the practice is legal under the fair-use provisions of U.S. copyright law. Nonetheless, even before the settlement, Google already had scaled back on the amount of cribbing, or "scraping," of online content after business review site Yelp Inc. lodged one of the complaints that triggered the FTC investigation in 2011.
In another concession, Google pledged to adjust the online advertising system that generates most of its revenue so marketing campaigns can be more easily managed on rival networks.
Google, though, prevailed in the pivotal part of the investigation, which delved into complaints that the Internet search leader has been highlighting its own services on its influential results page while burying links to competing sites. For instance, requests for directions may turn up Google Maps first, queries for video might point to the company's own site, YouTube, and searches for merchandise might route users to Google Shopping.
Although the FTC said it uncovered some obvious instances of bias in Google's results during the investigation, the agency's five commissioners unanimously concluded there wasn't enough evidence to take legal action.
"Undoubtedly, Google took aggressive actions to gain advantage over rival search providers," said Beth Wilkinson, a former federal prosecutor that the FTC hired to help steer the investigation. "However, the FTC's mission is to protect competition, and not individual competitors."
Two consumer rights groups lashed out at the FTC for letting Google off too easily.
"The FTC had a long list of grievances against Google to choose from when deciding if they unfairly used their dominance to crush their competitors, yet they failed to use their authority for the betterment of the marketplace," said Steve Pociask, president of the American Consumer Institute.
John Simpson of frequent Google critic Consumer Watchdog asserted: "The FTC rolled over for Google."
David Wales, who was the FTC's antitrust enforcement chief in 2008 and early 2009, said the agency had to balance its desire to prevent a powerful company from trampling the competition against the difficulty of proving wrongdoing in a rapidly changing Internet search market.
"This is a product of the FTC wanting to push the envelope of antitrust enforcement without risking the danger of losing a case in in court," said Wales, who wasn't involved with the case and is now a partner at the law firm Jones Day.
FTC Chairman Jon Leibowitz said the outcome "is good for consumers, it is good for competition, it is good for innovation and it is the right thing to do." Before reaching its conclusion, the FTC reviewed more than 9 million pages of documents submitted by Google and its rivals and grilled top Internet industry executives during sworn depositions.
The Computer & Communications Industry Association, a technology trade group, applauded the FTC for its handling of the high-profile case.
"This was a prudent decision by the FTC that shows that antitrust enforcement, in the hands of responsible regulators, is sufficiently adaptable to the realities of the Internet age," said Ed Black, the group's president.
The FTC has previously been criticized for not doing more to curb Google's power. Most notably, the FTC signed off on Google's $3.2 billion purchase of online advertising service DoubleClick in 2008 and its $681 million acquisition of mobile ad service AdMob in 2010. Google critics contend those deals gave the company too much control over the pricing of digital ads, which account for the bulk of Google's revenue.
If Google breaks any part of the agreement, Leibowitz said the FTC can fine the company up to $16,000 per violation. Last year, the FTC determined that Google broke an agreement governing Internet privacy, resulting in a $22.5 million fine, though the company didn't acknowledge any wrongdoing.
Google's ability to protect its search recipe from government-imposed changes represents a major victory for a company that has always tried to portray itself as force for good. The Mountain View, Calif., company has portrayed its dominant search engine as a free service that is constantly tweaking its formula so that people get the information they desire more quickly and concisely.
"The conclusion is clear: Google's services are good for users and good for competition," David Drummond, Google's top lawyer, wrote in a Thursday blog post.
Google's tactics also have been extremely lucrative. Although Google has branched into smartphones and many other fields since its founding in a Silicon Valley garage in 1998, Internet search and advertising remains its financial backbone. The intertwined services still generate more than 90 percent of Google's revenue, which now exceeds $50 billion annually.
Throughout the FTC investigation, Google executives also sought to debunk the notion that the company's recommendations are the final word on the Internet. They pointed out that consumers easily could go to Microsoft's Bing, Yahoo or other services to search for information. "Competition is just a click away," became as much of a Google mantra as the company's official motto: "Don't be evil."
Microsoft cast the FTC's investigation as a missed opportunity.
"The FTC's overall resolution of this matter is weak and — frankly —unusual," Dave Heiner, Microsoft's deputy general counsel, wrote on the company's blog. "We are concerned that the FTC may not have obtained adequate relief even on the few subjects that Google has agreed to address."
FairSearch, a group whose membership includes Microsoft, called the FTC's settlement "disappointing and premature," given that European regulators might be able to force Google to make more extensive changes.
"The FTC's inaction on the core question of search bias will only embolden Google to act more aggressively to misuse its monopoly power to harm other innovators," FairSearch asserted.
Yelp also criticized the FTC's handling of the case, calling "it a missed opportunity to protect innovation in the Internet economy, and the consumers and businesses that rely upon it."
Investors had already been anticipating Google would emerge from the inquiry relatively unscathed.
Google's stock rose 42 cents Thursday to close at $723.67. Microsoft, which is based in Redmond, Wash., shed 37 cents, or 1.3 percent, to finish at $27.25.
In a research note Thursday, Macquarie Securities analyst Benjamin Schachter described the settlement as "the best possible outcome" for Google. "We believe that the terms of the agreement will have very limited negative financial or strategic implications for the company." Schachter wrote.

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