Time's Up: Sides Closing In on 'Fiscal Cliff' Deal

Congressional and White House negotiators are closing in on a deal to avert across-the-board tax hikes and spending cuts that take effect at midnight, as the nation teeters on the edge of the so-called fiscal cliff.

An emerging tentative agreement would extend current tax rates for households making $450,000 or less; extend the estate tax at its current level of 35 percent for estates larger than $5 million; and prevent the Alternative Minimum Tax from hammering millions of middle-class workers, sources said.

The deal would also extend unemployment benefits set to expire Tuesday and avert a steep cut to Medicare payments for doctors.

Both sides also seem willing to delay by three months automatic spending cuts to defense and domestic programs, the sources said, setting the stage for continued fiscal debate in the next few months tied to the debt ceiling.

Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Ky., are leading the negotiations, sources said, holding several "good" conversations late into Sunday night and continuing a dialogue early this morning.

They are trying to broker an elusive compromise on taxes and spending that can win the support of bipartisan majorities in the Senate and House.

Even if a deal is reached between Biden and McConnell, members in both chambers would still need to review it and vote on it later today. Passage is far from guaranteed.

"This is one Democrat that doesn't agree with that at all," Iowa Democratic Sen. Tom Harkin said of the tentative deal. "No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up."

Failure of Congress to act on a tax measure by Tuesday morning would trigger income tax hikes on all Americans. The average family would pay an extra $3,446 in 2013 under the higher rates, according to the Tax Policy Center.

Regardless of the "cliff," virtually all workers are due to see less in their paychecks starting in January when the temporary 2 percent payroll tax cut will expire.

More than $1 trillion in automatic spending cuts to defense and domestic programs will also begin to take effect later this week unless Congress delays or replaces them.

"It is absolutely inexcusable that all of us find ourselves in this place at this time," Sen. Joe Manchin, D-W.Va., said Sunday night on the Senate floor.

"Something has gone terribly wrong when the biggest threat to our American economy is our American Congress," he said, echoing a frustration shared by many Americans.

Republican and Democratic Senate leaders wrangled all weekend over the outlines of a deal, but those talks eventually hit a brick wall on GOP insistence that Social Security savings be included in a deal.

"I want everyone to know I'm willing to get this done, but I need a dance partner," McConnell said Sunday, noting that he had directly reached out to Biden to break the impasse.

As part of any deficit reduction deal, the White House wants to raise income tax rates on people making more than $250,000 a year, a threshold on which President Obama campaigned for re-election.

Republicans, caving on outright opposition to any tax increases, want a higher income threshold for the tax hike of around $450,000, sources said. They also want to prevent the estate tax from rising above its current 35 percent rate on estates of $5.1 million or more.

"There is still significant distance between the two sides, but negotiations continue," Senate Majority Leader Harry Reid of Nevada said Sunday evening. "There is still time to reach an agreement, and we intend to continue negotiations."

Both sides say the cost of failure is high.

"If we are not able to reach an agreement, it will be dire," Sen. Jon Kyl, R-Ariz., said Sunday on ABC's "This Week." "Probably at least another million jobs lost, an unemployment rate over 9 percent, and putting us back into recession."

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Assad's forces battle to retake Damascus suburb

AMMAN (Reuters) - Elite Syrian government troops backed by tanks battled on Monday to recapture a strategic Damascus suburb from rebels who have advanced within striking distance of the center of Syria's capital.

Five people, including a child, died from army rocket fire that hit the Daraya suburb during the fighting, opposition activists said. Daraya is part of a semi-circle of Sunni Muslim suburbs south of the capital that have been at the forefront of the 21-month-old revolt against President Bashar al-Assad.

"This is the biggest attack on Daraya in two months. An armored column is trying to advance but it is being held (back) by the Free Syrian Army," said Abu Kinan, an opposition activist in the area, referring to a rebel group.

Clashes were also reported near the airport in Aleppo, Syria's largest city, which is in the north. Insurgents have made that airport a target in the hope of limiting government access to Aleppo, which is largely under rebel control.

Rebels have taken much of the north and east of Syria over the past six months, but government forces still hold most of the densely populated southwest around the capital, the main north-south highway and the Mediterranean coast.

Government forces scored a victory on Saturday, pushing rebels out of Deir Baalbeh, a district in Homs, an important central city that straddles the highway linking Damascus with the north and the Mediterranean.

Some opposition activists have said scores or even hundreds of people were executed in Deir Baalbeh by troops that seized it after several days of fighting. However, reports of killings there on a large scale could not be verified.

More than 45,000 people are estimated to have been killed in the 21-month war, the longest and deadliest of the revolts that began throughout the Arab world two years ago. Mainly Sunni Muslim rebels are fighting to topple Assad, a member of the Alawite minority sect whose family has ruled Syria since his father seized power 42 years ago in a coup.

The opposition refuses to hold peace talks unless Assad relinquishes power, and military successes over the last six months have reinforced its belief it can drive him out by force.

However, government troops still heavily outgun the fighters and maintain air bases scattered across the country.

The Damascus suburbs have become one of the major fronts of the war, with the rebels hoping to finally bring their uprising to the capital, heart of Assad's power.

Activist Abu Kinan said that tens of thousands of civilians had fled Daraya during weeks of government assault on the suburb, but that 5,000 remained, along with hundreds of rebels. Daraya is located near the main southern highway connecting Damascus to the Jordanian border 85 km (50 miles) to the south.

Activists said Republican Guard forces are trying to push back rebels who have been slowly advancing from the outskirts of Damascus to within striking distance of government targets and central districts inhabited by Assad's Alawite minority sect.

Assad's forces have mostly relied on aerial and artillery bombardment, rather than infantry. Rebels have been able take outlying towns and have clashed with government troops near Damascus International Airport, halting flights by foreign airlines.

Another activist in Damascus with links to rebels, who did not want to be named, said Daraya has been a firing position for rebels using mortars and homemade rockets. From it, they have been able to hit a huge presidential complex located on a hilltop overlooking Damascus and target pro-Assad shabbiha militia in an Alawite enclave nearby known as Mezze 86.

"So far they have missed the palace but they are getting better. I think the regime has realized that it no longer can afford to have such a threat so close by, but it has failed to overrun Daraya before," he said.

"HELL OR THE POLITICAL PROCESS"

The opposition is backed by most Western and Arab states, while Assad has enjoyed the diplomatic protection of Moscow, which sells arms to his government and maintains a naval base in one of his ports.

Western countries have been searching for signs that Moscow is lifting its protection of Assad, hoping that would bring him down much as Russia's withdrawal of support heralded the fall of Serbian leader Slobodan Milosevic 12 years ago.

Moscow said on Saturday that it has no power to make Assad leave office, and accused the rebels of prolonging the bloodshed by refusing to negotiate with him.

U.N. envoy Lakhdar Brahimi has called on outside powers to push all sides to talk, arguing that Syria faces a choice of "hell or the political process".

Brahimi is touting a peace plan agreed to in principle by international powers six months ago, but the plan does not explicitly call for Assad to be excluded from power, which the opposition regards as a precondition to any talks.

The opposition-linked Syrian Observatory for Human Rights said that rebels clashed with government troops near Aleppo's international airport. Rami Abdelrahman, the British-based Observatory's director, told Reuters by phone that fighting flared on Sunday night and continued into Monday morning.

He said no flights were departing or arriving from the airport. Syria's state airline canceled at least one flight there over the weekend.

Nevertheless, the government's seizure of Deir Baalbeh in Homs is a reminder that its forces are still capable of recapturing territory from the lightly armed rebels. Syria's state news agency SANA said government forces seized a large cache of weapons and ammunition after capturing the district.

(Writing by Peter Graff; Editing by Oliver Holmes and Mark Heinrich)

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HTC hopes to get ahead of competition in 2013

TAIPEI: Taiwan's economy has been one of the worst performing economies in Asia this year.

A decline in exports has slowed its full year economic growth to one per cent.

2012 was a tough year for Taiwan's technology industry, especially for smartphone maker HTC, which lost much of its global market to rivals Apple and Samsung.

Its falling sales had not only hurt HTC's bottom-line, but also dragged Taiwan's exports into negative growth.

HTC is stepping up efforts to woo consumers. It hopes to turn its fortune around with new gadgets.

"Our storage capacity for HTC One X has increased to 64GB from the previous 32GB. Plus, its battery life is longer by up to 37 per cent," said Eric Chen, HTC Taiwan's marketing director on its HTC One X handset.

As Asia's second largest handset maker, HTC saw its sales falling some 40 per cent this year.

Competition from Apple and Samsung halved its global market share to 4 per cent.

This took a toll on Taiwan's export growth, of which a quarter came from HTC.

Sam Shen, Market Intelligence and Consulting Institute director said: "HTC's shipments last year exceeded 53 million units. This year could shrink to some 40 million units. So the decline stood out in the overall export figures."

The island's exports in 2012 are likely to contract by more than 2 per cent, to their lowest level in three years.

But Taiwan's market intelligence agency believes the worst is over for HTC.

Mr Shen said: "With the continuing advancement of smartphones and their key components, there's going to be greater demand from the emerging economies. Overall, the market will remain competitive, but demand will be high."

Global shipments for smartphones are expected to grow by more than 20 per cent in 2013.

HTC is fighting back by expanding its presence in China, the fastest growing market in the world. Still, it could be a rough road ahead for the company.

"On the high-end smartphones, HTC is competing against Samsung and Apple. And on the low-end handsets, HTC is up against China's Huawei Technologies and ZTE. So it's going to be tough," said Masson Li, Taishin Securities Investment Advisory's co-vice president.

Mr Li added: "Actually the lines between smartphones and tablets are blurring. So more tablet makers may want to get a piece of the smartphone market."

While it may take a while for HTC to get back on its feet, Taiwan can still count on tablets for support.

Currently, more than 80 per cent of tablets in the world are made by Taiwanese firms.

According to IDC, global shipments for tablets are estimated to soar 40 per cent in the coming year.

If the global market regains momentum as expected, Taiwan's economic growth could exceed 3 per cent in 2013.

- CNA/xq

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Fund this: An iPhone game controller that's also a case

The WynCase clips onto your iPhone or iPod Touch to provide tactile controls for a variety of games.

(Credit:
WynLabs)

Too many great iPhone games suffer from digit interruptus: onscreen controls force your thumbs or fingers to block too much of the action. Plus, there's no tactile feedback. meaning you don't get the button-mashing goodness associated with the best console and arcade games.

Developers have proposed a variety of solutions to this problem. For example, ThinkGeek's iCade 8-Bitty gives you a Nintendo-style controller with a D-Pad and lots of buttons -- but it works with only a smattering of games. Plus it's a hassle to carry around.

The upcoming iMpulse controller is small enough to ride on a keychain, but suffers from a similar functional limitation: because it relies on Bluetooth connectivity, it'll work with only a small subset of available iOS games.

Depending on the kinds of games you like to play, you might be much happier with something like the WynCase. This snap-on iPhone controller, which doubles as a protective case, requires no Bluetooth and no batteries.

So that means it plugs into the iPhone's docking port, adding lots of bulk, right? Wrong. The WynCase leverages a patent-pending technology called BridgeTouch: the case covers two slivers of the screen (the top and bottom edges) so that it can make contact with it, effectively relaying button presses as finger-touches.

That allows the WynCase to work with touch-powered games like Jetpack Joyride, Real Boxing, Tiny Wings, and, happily for me, racing games like Need for Speed: Most Wanted and Reckless Racing.

The case is compatible with the
iPhone 4/4S,
iPhone 5, and
iPod Touch (fourth- and fifth-gen models). Alas, the first edition looks like it was designed for the older hardware, meaning it'll block more than just a sliver of the iPhone 5's and new iPod Touch's screens. Hopefully the developers will introduce a wider version in the future.

Of course, that assumes the WynCase reaches its Kickstarter funding goal of $80,000 -- it's currently just under $15,000, with about 12 days to go. If you're interested, you can buy in for as little as $30, a price that includes shipping and your choice of a black or white case. Other colors, including red, yellow, and blue, can be had at the $40 pledge level. Keep in mind that delivery looks to be as far out as May, if not later.

I must say, of all the iPhone game controllers (both real and in the development stage) I've seen, this one shows the most promise. It deftly works around the compatibility problem associated with Bluetooth-powered controllers, and it makes your iDevice feel more like a handheld game console than a detached controller ever could. Plus, it requires no batteries -- always a plus.

What are your thoughts? Is this worth funding?

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Pregnant U.S. woman missing in Afghanistan

KABUL The father of a pregnant American woman missing in Afghanistan has broken his silence over her disappearance to make a desperate plea for her safe return.

James Coleman, father of 27-year-old Caitlan Coleman, told The Associated Press his daughter was traveling with her Canadian husband when she vanished in early October. The last communication came from Caitlan's husband, Josh, who said he was in an Internet cafe on Oct. 8, in what he described as an "unsafe" part of Afghanistan. Caitlin was due to give birth in January.

An Afghan official has claimed the couple was kidnapped in Wardak province, west of the capital Kabul. So far, however, there has been no clear evidence they were abducted. Many insurgent groups operate in the area, but none have claimed responsibility for their disappearance, or demanded a ransom.

"I'm not sure whether they have been kidnapped by the Taliban or not," Taliban spokesman Zabihullah Mujahid told CBS News on Monday. "We are still investigating."

The U.S. Embassy in Kabul would only confirm that it was in contact with Coleman's family and was "coordinating closely with the Canadian authorities."

"Due to privacy considerations we cannot provide additional information about the case," embassy spokesman David Snepp told CBS News in a written statement.

A spokesperson for the governor of Wardak province, Shahidulla Shahid, was also unable to shed much light on the couple's fate.

"We are aware that an American woman and her husband have disappeared," he told CBS News, "but our investigation has found no lead in the case."

James Coleman was at pains to even explain why his daughter was in the war-torn country to begin with. He described her to the AP as "naive" and "adventuresome," and suggested she and Josh might have been looking for an opportunity to start working for an aid agency.

Since Caitlan's disappearance, the family has become increasingly concerned about her health, as she needs regular medical attention for a liver condition.

"Our goal is to get them back safely and healthily," he said. "I don't know what kind of care they're getting or not getting. We're just an average family and we don't have good connections with anybody and we don't have a lot of money."

The couple started traveling last July, passing through Russia, Kazakhstan and Tajikistan before entering Afghanistan.

The country is generally deemed unsafe for tourists and the area where they vanished is particularly dangerous for foreigners. Last year a German tourist was killed while traveling through central Afghanistan and a Canadian tourist was kidnapped not far from where Caitlan and her husband were last heard from.

Caitlan's father said the couple liked to travel primarily in small villages, getting to know locals along the way, and had said they were "heading into the mountains" before they disappeared.

Had they done so, they would have faced danger not only from Taliban groups and criminal gangs, but also from the elements. Temperatures in Afghanistan have consistently dropped below freezing in recent weeks, and conditions in the mountains are particularly harsh at this time of year.

Caitlan's father is holding out hope for his daughter's safe return.

"We appeal to whoever is caring for her to show compassion and allow Caity, Josh and our unborn grandbaby to come home," he told the AP.

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NYC Subway Pusher Held For Hate-Crime Murder

A woman who allegedly told New York City police she pushed a man onto the subway tracks because she hated Hindus and Muslims has been charged with murder as a hate crime.

Erica Menendez, 31, allegedly told police that she "pushed a Muslim off the train tracks because I hate Hindus and Muslims ever since 2001 when they put down the twin towers I've been beating them up."

Menendez was taken into custody this morning after a two-day search, and when detectives were interviewing her she allegedly made the statements implicating herself in Thursday night's subway-platform death.

"The defendant is accused of committing what is every subway commuter's worst nightmare -- being suddenly and senselessly pushed into the path of an oncoming train," Queen District Attorney Richard A. Brown said. "The victim was allegedly shoved from behind and had no chance to defend himself. Beyond that, the hateful remarks allegedly made by the defendant and which precipitated the defendant's actions can never be tolerated by a civilized society."

Menendez was due to be arraigned this evening. She could face 25 years to life in prison if convicted of the second degree murder charge.

On Thursday night, a woman shoved a man from a subway platform at Queens Boulevard, and the man was crushed beneath an oncoming train. Police had searched the area for her after the incident.

New York City Subway Pusher Charged With Murder Watch Video

The victim was Sunando Sen, identified by several media outlets as a graphic designer and Indian immigrant who opened a print shop, Amsterdam Copy, on Manhattan's Upper West Side. Sen was struck by the No. 7 train after the unidentified woman allegedly pushed him from the northbound platform at 40th Street and Queens Boulevard at 8:04 p.m. on Thursday.

Witnesses told police they had seen the woman mubling to herself, pacing along the platform. She gave Sen little time to react, witnesses said.

"Witnesses said she was walking back and forth on the platform, talking to herself, before taking a seat alone on a wooden bench near the north end of the platform. When the train pulled into the station, the suspect rose from the bench and pushed the man, who was standing with his back to her, onto the tracks into the path of the train," NYPD Deputy Commissioner Paul J. Browne said earlier today. "The victim appeared not to notice her, according to witnesses."

READ: What to Do If You Fall on the Subway Tracks

Police released brief surveillance video of the woman fleeing the subway station, and described the suspect as a woman in her 20s, "heavy set, approximately 5'5" with brown or blond hair."

It was New York's second death of this kind in less than a month. On Dec. 3, 58-year-old Ki-Suck Han of Queens was shoved onto the tracks at New York's Times Square subway station. Two days later, police took 30-year-old Naeem Davis into custody.

On Friday, New York City Mayor Michael Bloomberg was asked whether the attack might be related to the increase of mentally ill people on the streets following closures of institutions over the past four decades.

"The courts or the law have changed and said, no, you can't do that unless they're a danger to society. Our laws protect you," Bloomberg said on his weekly radio show.

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Body of India rape victim cremated in New Delhi

NEW DELHI (Reuters) - The body of a woman, whose gang rape provoked protests and rare national debate about violence against women in India, arrived back in New Delhi on Sunday and was cremated at a private ceremony.

Scuffles broke out in central Delhi between police and protesters who say the government is doing too little to protect women. But the 2,000-strong rally was confined to a single area, unlike last week when protests raged up throughout the capital.

Riot police manned barricades along streets leading to India Gate war memorial - a focal point for demonstrators - and, at another gathering point - the centuries-old Jantar Mantar - protesters held banners reading "We want justice!" and "Capital punishment".

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

The unidentified 23-year-old victim of the December 16 gang rape died of her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

The medical student had suffered brain injuries and massive internal injuries in the attack and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, police figures show. Reported rape cases rose by nearly 17 percent between 2007 and 2011, according to government data.

Six suspects were charged with murder after her death and face the death penalty if convicted.

In Kolkata, one of India's four biggest cities, police said a man reported that his mother had been gang-raped and killed by a group of six men in a small town near the city on Saturday.

She was killed on her way home with her husband, a senior official said, and the attackers had thrown acid at the husband, raped and killed her, and dumped her body in a roadside pond.

Police declined to give any further details. One officer told Reuters no criminal investigation had yet been launched.

"MISOGYNY"

The leader of India's ruling Congress party, Sonia Gandhi, was seen arriving at the airport when the plane carrying the woman's body from Singapore landed and Prime Minister Mannmohan Singh's convoy was also there.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Her body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

The outcry over the attack caught the government off guard. It took a week for the prime minister to make a statement, infuriating many protesters. Last weekend they fought pitched battles with police.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, though it is too early to say whether the protesters can sustain their momentum through to national elections due in 2014.

U.N. Secretary General Ban Ki-Moon added his voice to those demanding change, calling for "further steps and reforms to deter such crimes and bring perpetrators to justice".

Commentators and sociologists say the incident earlier this month has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express said it was more complicated than realizing that the police force was understaffed and underpaid.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

(Additional reporting by Ross Colvin and Diksha Madhokin New Delhi and Sujoy Dhar in Kolkata; Editing by Louise Ireland)

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Chris Brown arrives with Rihanna for Africa's Kora Awards

ABIDJAN: US rapper Chris Brown arrived with singer Rihanna in the Ivory Coast city Abidjan on Sunday, when he was due to perform at an African music awards show.

Brown was billed as the star attraction at the glitzy Kora Awards, dubbed the "African Grammys", that recognise musical achievements from around the continent.

The event was initially set to take place on Saturday, but was delayed at the last minute. Organiser Ernest Adjovi initially blamed the delay on Brown missing his flight, but later said heavy rains and other logistical hiccups were behind the postponement.

R&B star Brown landed overnight in Abidjan, the Ivorian economic capital. Rihanna, who hails from Barbados, was by his side, wearing dark glasses.

The pair have a tumultuous history, and celebrity watchers obsessed about whether they are an item again after Brown admitted assaulting Rihanna in a case dating back to the 2009 Grammy Awards in Los Angeles.

Past Kora ceremonies have been attended by South African anti-apartheid hero Nelson Mandela and the late "King of Pop" Michael Jackson.

Brown, whom fans call Breezy, was also slotted to perform at a "Peace for Africa" concert at a stadium in Abidjan on Sunday afternoon.

Artists including the Nigerian duo P-Square, winner of the last top Kora prize in Burkina Faso capital Ouagadougou in 2010, will also take part in that event.

The Kora Awards were due to start at 8:30 pm (2030 GMT) at a luxury hotel.

For Ivory Coast, which is still recovering from four months of post-election violence that ended in April 2011 after claiming some 3,000 lives, the event signals a return to normalcy.

But the awards have drawn fire over the price of admission, with tickets costing one million CFA francs (US$2,000) for a seat in the luxury hotel for the ceremony.

Such a sum is far from the reach of this poor west African country, the world's top cocoa producer.

Brown was sentenced to five years probation, a year-long domestic violence programme and 180 days of community labour after pleading guilty to assaulting Rihanna on the eve of the Grammy Awards in Los Angeles in 2009.

- AFP/xq

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Danish modern: Raidho Acoustics C 3.1 speaker

Raidho Acoustics C 3.1 speakers

(Credit:
Raidho Acoustics)

I had my first glimpse of the Raidho Acoustics' sound at the Rocky Mountain Audio Fest in Denver in October, but the Denmark-based company's demo didn't click for me. That's not uncommon; show conditions and hotel rooms may not be the best environments to hear state-of-the-art sound.

Then just last week I heard a pair of Raidho C 3.1 speakers ($39,000) at a friend's home in New York, and the sound was a revelation. We played an unreleased and 100 percent uncompressed audiophile recording of a solo piano, and the purity and clarity were simply astonishing. Reproducing the true sound of a 9-foot Yamaha grand piano is impossible, but the C 3.1 was a whole lot closer to reaching that goal than I've heard in a long while. Pianos are percussion instruments -- they make sound with felt-covered hammers striking metal strings -- and the C 3.1s made that fact perfectly clear. I was present at the recording session just a week earlier, so I had a good handle of what that piano really sounded like, and the C 3.1s brought it back to life. The "attack" of each note was presented with remarkable fidelity, and the rich tone of the instrument was fully intact.

The C 3.1 has three 4.5-inch ceramic woofers, one 4-inch ceramic midrange driver, and a ribbon tweeter. The curved cabinet's walnut burl finish was extraordinary.

The other thing that struck me about the C 3.1s' sound was the bass definition. These speakers nail the pitch, texture, and palpable feel of bass with rare precision. Truly deep, under 40Hz bass wasn't in the cards for the C 3.1s, but the speakers' reproduced subtle details, like the recording venue's reverberation and acoustics, really well.

The C 3.1 is one of the best-sounding speakers I've heard this year. I'm not claiming it's the best speaker in the world, just one I actually heard and fell in love with.

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Pakistan terror incidents threaten peace talks

ISLAMABAD The killing of 41 people in two separate terrorist incidents in Pakistan appeared on Sunday to temporarily halt prospects for immediate peace talks between Pakistani authorities and Taliban militants, two senior Pakistani intelligence officers and a senior western diplomat in Islamabad warned.

Both intelligence officers said that the fallout of the killings may even harm U.S. plans to peacefully draw down troops from Afghanistan, with Pakistan's active backing.

In the first incident, 21 Pakistani paramilitary guards working in the northern Khyber-Pakhtunkhwa province who were kidnapped last week by the Taliban were confirmed dead on Saturday.

"All the 21 young men were brutally killed by their captors," said one Pakistani intelligence officer who spoke to CBS News on condition of anonymity because intelligence officers are not allowed to speak to journalists.

He said that the kidnapped men's killings may have been triggered in part by the Pakistani government's refusal to release some Taliban militants in custody.

After the men were kidnapped, a senior government official in the northern city of Peshawar, the provincial capital, told CBS News that the Taliban were demanding the release of some of their fellow militants in Pakistan's custody in exchange for the 21 men.

In the second incident on Sunday, at least 20 Pakistanis of the Shia Muslim faith were killed and more than 20 wounded when a car bomb targeted their convoy of buses being driven through the southwestern Baluchistan province to the Iranian border.

Pakistani officials said the dead were heading to Iran's northern holy city of Mashhad to attend an important Shiite commemoration in the coming week.

The second Pakistani intelligence officer who spoke to CBS News said that the killings in Baluchistan "seem to be linked to factions associated with the Taliban.

"These killings make it practically impossible for the government to have a peace dialogue with the Taliban," the officer said. "No one will speak to these people while we have a gun pointed to our heads."

In the past, representatives of Pakistan's Shia Muslims have claimed that the Taliban (who belong to a hardline version of the Sunni Muslim faith) have been involved in attacks on Shiites in Baluchistan.

The two terrorist incidents were preceded by reports of the Taliban sending messages to senior leaders of President Asif Ali Zardari's administration in Islamabad, seeking peace talks to end a decade-long conflict with the Pakistan army.

Senior government officials have reacted cautiously, with some suggesting that the offer should be carefully considered, while others have warned that the Taliban will not agree to end their attacks on Pakistani troops until a final settlement, on their terms, comes together.

"The two brutal terrorist incidents are a major cause of concern. They suggest there's no appetite among the Taliban for a peaceful end to the war," said a senior Western diplomat in Islamabad who also spoke to CBS News on condition of anonymity.

He warned that in addition to Pakistan's own internal security conditions, more violence will make it harder for the country to cooperate with the U.S. in facilitating an orderly American troop drawdown from Afghanistan by end of 2014.

"Pakistan will be the main route for U.S. troops leaving Afghanistan. If there is no end to Taliban violence in Pakistan, the drawdown will face threats," added the diplomat.

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