Asian hedge fund industry faces challenges ahead

SINGAPORE: Hedge fund managers said industry consolidation and increased regulatory oversight with accompanying costs are the top two challenges facing the industry in the next one to two years.

This is according to a pool of 100 hedge fund managers interviewed by accounting firm, Ernst and Young.

Many also pointed to a downward pressure on fees, resulting in a drop in revenues.

Hedge funds are investment funds that generally only open to institutions and sophisticated investors specified by regulators and use advanced investment strategies such as leveraged, long, short and derivative positions.

According to Eurekahedge, an investment funds research house, specialising in hedge fund databases, Asian hedge funds may be delivering an annualised returns of 9 percent since 2008, but things are not looking all that rosy for the industry.

More than 70 hedge funds in Asia have shut down this year, with more expected to close shop next year.

Eurekahedge's head of Analysis and Research, Farhan Mumtaz, said: "Returns are performance-based, so if they are performing well, it does not necessarily mean they would be making a lot of cash for themselves especially if they have a smaller asset base.

"Since 2008, a number of hedge funds remain below their high water mark."

The slowdown in the US and the sovereign debt situation in Europe have made matters worse for hedge funds in Asia as asset flows dried up because of risk aversion.

This year, Asia's hedge funds are estimated to have managed some US$126 billion -- a drop of almost 30 percent from 2007.

But the number of hedge funds operating in Asia remain almost unchanged, standing at 1,319 for the three quarters of 2012, compared to 1,317 for the whole of 2011.

Mr Mumtaz said: "It is a fluid situation, there will obviously new start-ups. We expect that trend to continue for one reason, banks themselves are not doing too well -- their trading operations are at risk of closing. So, when that's closed, to pre-empt that, traders might start their own hedge funds."

However, industry tracker, Eurekahedge expects the asset size of Asian hedge funds to grow 7 percent next year to US$135 billion as risk appetite recovers.

Ernst and Young's partner for Assurance and Financial services, Brian Thung, said: "Investment performance is a very key criteria for the investors.

"However, the investors also need to understand or they want to understand how would the managers be having an operational model that would allow them to create this kind of returns that investors crave for."

According to Ernst and Young, hedge funds continue to face a squeeze on margins, particularly on fees and often in return for large mandates and lock-up periods.

- CNA/lp

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We source all our ingredients locally: McDonald's India

NEW DELHI: Fast food chain McDonald's today disputed the remark of Leader of the Opposition Sushma Swaraj in Parliament that it does not buy local produce, saying all the ingredients used in its products in India are sourced from within the country.

"Before setting up its business in India, McDonald's had made a commitment to government on local sourcing of its entire raw material requirement.

"We confidently and proudly state that ingredients used in our products are sourced locally that includes the French Fries," McDonald's India (North and East) managing director Vikram Bakshi said in a statement.

He was reacting to Swaraj's remark in Parliament during the debate on FDI in retail today that even McDonald's was importing potatoes from abroad and not buying the produce locally.

"We import only on rare occasions when local supplies run out," Bakshi said, adding that "McDonald's remains steadfast to its commitment of working with local suppliers and farmers to source all its requirements in India".

The company, along with its supplier McCain, has worked closely with farmers in India to produce process-grade potato varieties, he claimed.

"We continue to contribute in the growth of these farmers," Bakshi said, adding that when McDonald's began developing its business in India, potatoes with the right quality for 'French Fries' were not available.

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner .

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Republicans Weigh 'Doomsday' Fiscal Cliff Plan

Dec 3, 2012 9:39am

Alex Wong/Getty Images

Republicans are seriously considering a Doomsday Plan if fiscal cliff talks collapse entirely.  It’s quite simple:  House Republicans would allow a vote on extending the Bush middle class tax cuts (the bill passed in August by the Senate) and offer the President nothing more:  no extension of the debt ceiling, nothing on unemployment, nothing on closing loopholes.  Congress would recess for the holidays and the president would face a big battle early in the year over the debt ceiling.

Two senior Republican elected officials tell me this doomsday plan is becoming the most likely scenario.  A top GOP House  leadership aide confirms the plan is under consideration, but says Speaker Boehner has made no decision on whether to pursue it.

Under one variation of this Doomsday Plan, House Republicans would allow a vote on extending only the middle class tax cuts and Republicans, to express disapproval at the failure to extend all tax cuts, would vote “present” on the bill, allowing it to pass entirely on Democratic votes.

Infographic: The Fiscal Cliff

By doing this, Republicans avoid taking blame for tax increases on 98 percent of income tax payers.  As one senior Republican in Congress told me, “You don’t take a hostage you aren’t willing to shoot.”  Republicans aren’t willing to kill the middle class tax cuts, even if extending them alone will make it harder to later extend tax cuts on the wealthy.

Rep. Tom Cole, R-Okla., an influential conservative House Republican, is already on record supporting extending the middle class tax cuts — with or without the upper income tax cuts.  On Sunday, he said Republicans should embrace the extension of the middle class tax cuts and take credit for it.

“That’s a victory, not a loss,” Cole said on This Week with George Stephanopoulos.  ”And then we’re still free to try and fight over higher rates, offering revenue, which the Speaker has put on the table.”

Last week, Boehner said he disagreed with Cole.  But now a version of what Cole has called for looks more and more likely to happen.

Still unclear under this plan is what would happen to the automatic defense cuts — “sequestration” — scheduled to go into effect on January 1 without a deficit deal.  During the campaign, the President promised the cuts would not happen.  As part of the deal to allow the House vote on taxes, those automatic defense cuts could be put off for a year.

Get more pure politics at ABC News.com/Politics and a lighter take on the news at OTUSNews.com

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Netanyahu brushes off world condemnation of settlement plans

JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu on Sunday brushed off world condemnation of Israel's plans to expand Jewish settlements after the Palestinians won de facto U.N. recognition of statehood.

"We will carry on building in Jerusalem and in all the places that are on the map of Israel's strategic interests," a defiant Netanyahu said at the weekly cabinet meeting.

In another blow to the Palestinian Authority in the West Bank, Israel announced it was withholding Palestinian tax revenues this month worth about $100 million.

Israel said the reason for the move was a Palestinian debt of $200 million to the Israeli Electric Corporation, an obligation that has existed for some time.

Finance Minister Yuval Steinitz cautioned last month that if the Palestinians went ahead with the U.N. bid Israel would "not collect taxes for them and we will not transfer their revenues".

Yasser Abed Rabbo, a senior Palestinian official, said confiscation of the tax funds due the cash-strapped Authority, vital to meeting its payroll, was "piracy and theft".

Stung by the U.N. General Assembly's upgrading of the Palestinians' status from "observer entity" to "non-member state", Israel said on Friday it would build 3,000 more settler homes in the West Bank and East Jerusalem, areas Palestinians want for a future state, along with Gaza.

An Israeli official said the government also ordered "preliminary zoning and planning work" for thousands of housing units in areas including the so-called "E1" zone near Jerusalem.

Such construction could divide the West Bank in two and further dim Palestinian hopes, backed by the United States and other international sponsors of the Middle East peace process, for a contiguous country.

"It would represent an almost fatal blow to remaining chances of securing a two-state solution," United Nations Secretary-General Ban Ki-moon said in a statement on Sunday.

Israeli officials said it could be up to two years before any building begins in E1.

At the cabinet meeting, Netanyahu said the "unilateral step the Palestinians took at the U.N. is a gross violation of previous agreements signed with Israel". The government of Israel, he added, "rejects the General Assembly's vote".

The upgrade, approved overwhelmingly, fell short of full U.N. membership, which only the Security Council can grant. But it has significant legal implications because it could allow the Palestinians access to the International Criminal Court where they could file complaints against Israel.

Israel's settlement plans, widely seen as retaliation for the Palestinians' U.N. bid, have drawn strong international condemnation from the United States, France, Britain and the European Union.

"The recognition of Palestine as a state changes a lot of the facts, and aims to establish new ones," Palestinian President Mahmoud Abbas told a cheering crowd in the West Bank city of Ramallah on his return from the United States.

"But we have to recognize that our victory provoked the powers of settlement, war and occupation."

INTERNATIONAL CRITICISM

Netanyahu heads a pro-settler government and opinion polls predict his Likud party will come out on top in Israel's January 22 parliamentary election, despite opponents' allegations that his policies have deepened Israeli diplomatic isolation.

"All settlement construction is illegal under international law and constitutes an obstacle to peace," the EU's foreign policy chief Catherine Ashton said in a statement on Sunday.

The United States said the plan was counterproductive to any resumption of direct peace talks, stalled for two years in a dispute over settlement expansion in the West Bank and East Jerusalem, both captured by Israel in a 1967 war.

Netanyahu says Israel, as a Jewish state, has a historic claim to land in the West Bank and to all of Jerusalem. Palestinians want East Jerusalem as the capital of a future state. Israel considers all of the holy city as its capital, a claim that is not recognized internationally.

Israeli Housing Minister Ariel Attias said that within weeks the government would publish invitations for bids from contractors to build 1,000 homes in East Jerusalem and more than 1,000 in West Bank settlement blocs.

"E1 is in planning, which means sketches on paper," Attias told Army Radio. "No one will build until it is clear what will be done there."

The E1 zone is considered especially sensitive. Israel froze much of its activities in E1 under pressure from former U.S. President George W. Bush and the area has been under the scrutiny of his successor Barack Obama.

Benny Kashriel, mayor of the Maale Adumim settlement adjacent to E1, told Army Radio building "will take a year or two".

Yariv Oppenheimer, head of the Israeli anti-settlement group Peace Now said: "If we build in E1 the two-state vision will truly be history ... it is a strategic point that if built, will prevent the Palestinians from having a normal state."

Approximately 500,000 Israelis and 2.5 million Palestinians live in the West Bank and East Jerusalem.

(Additional reporting by Jihan Abdalla and Ali Sawafta in Ramallah and Louis Charbonneau in New York; Editing by Jeffrey Heller and Andrew Roche)

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Netball: Singapore pick up second victory in Nations Cup

SINGAPORE: Singapore picked up its second victory at the Netball Nations Cup on Monday.

The hosts defeated the Republic of Ireland 54-34 at the Toa Payoh Sports Hall.

Singapore narrowly beat Malaysia 44-42 on Sunday.

But it was an easier task against the Republic of Ireland, the lowest ranked team in the six-nation tournament.

The Singapore girls took control early and led all the way.

The hosts even used the game to try out new player combinations.

Ireland tried but succumbed, suffering their second defeat in as many games.

In their next match, Singapore will meet a tougher Namibia as the Africans are looking good and determined.

In an earlier match on Monday, Namibia put up a strong fight against higher-ranked Sri Lanka before losing 65-69.

In another match, Malaysia suffered their second defeat in a row, losing to Tanzania 36-61.

- CNA/de

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Cauvery water issue: Tamil Nadu says centre soft on Karnataka

NEW DELHI: Since Karnataka is heading for assembly elections in 2013, the central government may not be pushing it hard to release Cauvery water for Tamil Nadu, the Supreme Court was told by a counsel on Monday.

"Karnataka elections are there. No direction will be given (to Karnataka to release water to Tamil Nadu)," Tamil Nadu's senior counsel CS Vaidyanathan told the apex court bench of Justice DK Jain and Justice Madan B Lokur.

The court is hearing a batch of petitions and application filed by Karnataka and Tamil Nadu on the release of 9,000 cusecs of water daily from Cauvery for the latter.

The Cauvery River Authority (CRA) headed by the prime minister in an interim award Sep 19 directed Karnataka to release for Tamil Nadu 9,000 cusecs of Cauvery water every day.

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner .

Read More..

Geithner on Fiscal Cliff: Ball Is in GOP's Court

Dec 2, 2012 9:00am

(ABC News)

With the fiscal cliff looming and no deal to resolve it in sight, Treasury Secretary Timothy Geithner expressed confidence that a compromise could be reached during my interview with him on “This Week,” but said the burden is now on Republicans to help find a solution to avoid a potential economic crisis.

(More from Sunday’s show HERE.)

“I actually think that we’re gonna get there. I mean, you know, just inevitably gonna be a little political theater in this context,” Geithner said, when asked whether Senate Minority Leader Mitch McConnell laughed after hearing President Obama’s plan to avert the fiscal cliff. ”Sometimes that’s a sign of progress. Think we’re actually making a little bit of progress, but we’re still some distance apart.”

Echoing widespread Republican rejection of the White House’s proposal last week, House Speaker John Boehner said after meeting with Geithner that ” the White House has to get serious.”

“And at this point though — you gotta recognize that they’re in a very difficult place. And they recognize they’re gonna have to move on a bunch of things.  But they don’t know really how to do it yet. And how to get support from the — from the members on the Republican side,” he said, adding later that the proverbial ball was “absolutely” in the GOP court. “And, you know, when they come back to us and say, ‘We’d like you to consider this.  And we’d like you to consider that,’ we’ll take a look at that.”

Geithner — who met with top GOP leaders this week to present the White House’s proposal to end the fiscal standoff — predicted support from “the business community” and “from the American people” for a deal approximating the one being offered, which reportedly includes tax hikes on the wealthy, cuts to Medicare and some stimulus spending.

However, if there is no agreement by the end of the year, the treasury secretary told me going over the cliff would be “very damaging.”

“Look, there’s a huge amount at stake here in this economy, George.  And there’s just no reason why 98 percent of Americans have to see their taxes go up because some members of Congress on the Republican side want to block tax rate increases for 2 percent of the wealthiest Americans.  Remember, those tax rates, those tax cuts, cost a trillion dollars over 10 years,” he said.

Geithner said the White House plan offered a “good mix” of increased taxes and spending cuts. He also added that Social Security reform would not be part of the discussion to resolve the fiscal cliff.

“We think we have a very good plan, a very good mix of tax reforms that raise a modest amount of revenue on the wealthiest 2 percent of Americans, combined with very comprehensive, very well designed, very detailed savings that get us back to the point where our debt is stable and sustainable,” he said. “We’re prepared to, in a separate process, look at how to strengthen Social Security.  But not as part of a process to reduce the other deficits the country faces,” he said.

Finally, with Geithner wrapping up his time in the president’s cabinet, I asked him if banking executive Jamie Dimon – who has  billionaire Warren Buffett’s endorsement — should be named the next treasury secretary, but Geithner declined to answer directly.

“George, the president’s gonna choose somebody very talented to lead the Treasury for his next four years.  And– I’m very fortunate I’ve been able to work with him to help solve these problems in the country over this period of time.  And I’m very confident he’s gonna have somebody in place– in January to succeed me,” he said.

SHOWS: This Week

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Islamist protest shuts down Egypt's top court

CAIRO (Reuters) - Protests by Islamists allied to President Mohamed Mursi forced Egypt's highest court to adjourn its work indefinitely on Sunday, intensifying a conflict between some of the country's top judges and the head of state.

The Supreme Constitutional Court said it would not convene until its judges could operate without "psychological and material pressure", saying protesters had stopped the judges from reaching the building.

Several hundred Mursi supporters had protested outside the court through the night ahead of a session expected to examine the legality of parliament's upper house and the assembly that drafted a new constitution, both of them Islamist-controlled.

The cases have cast a legal shadow over Mursi's efforts to chart a way out of a crisis ignited by a November 22 decree that temporarily expanded his powers and led to nationwide protests.

The court's decision to suspend its activities appeared unlikely to have any immediate impact on Mursi's drive to get the new constitution passed in a national referendum on December 15.

Three people have been killed and hundreds wounded in protests and counter-demonstrations over Mursi's decree.

At least 200,000 of Mursi's supporters attended a rally at Cairo University on Saturday. His opponents are staging an open-ended sit-in in Cairo's Tahrir Square, the cradle of the uprising that toppled Hosni Mubarak in February 2011.

Mursi and the Muslim Brotherhood, which propelled him to power in a June election, hope to end the crisis by pushing through the new constitution hastily adopted by the drafting assembly on Friday. The next day the assembly handed the text to Mursi, who called the referendum and urged Egyptians to vote.

"The Muslim Brotherhood is determined to go ahead with its own plans regardless of everybody else. There is no compromise on the horizon," said Hassan Nafaa, a professor of political science at Cairo University.

Outside the Supreme Constitutional Court, Muslim Brotherhood supporters rallied behind the referendum date. "Yes to the constitution", declared a banner held aloft by one protester. Chants demanded the "purging of the judiciary".

The interior minister told the head of the court that the building was accessible and the protests were peaceful, according a statement from the ministry.

The protest reflected the deep suspicion harbored by Egypt's Islamists towards a court they see as a vestige of the Mubarak era. The same court ruled in June to dissolve the Muslim Brotherhood-led lower house of parliament.

Since then, several legal cases have challenged the legitimacy of the upper house of parliament and the 100-member constituent assembly that wrote the constitution.

Those against the upper house have focused on the legality of the law by which it was elected, while the constitutional assembly has faced a raft of court cases alleging that the way it was picked was illegal.

STOCK MARKET RALLIES

Mursi believes that securing approval for the new constitution in a popular referendum will bury all arguments on the legality of the constituent assembly, as well as controversy over the text it worked through the night to finish on Friday.

It will also override the November 22 decree that prompted statements of concern from Western governments and a rebellion by sections of the judiciary that saw it as a threat to their role. The decree shielded Mursi from judicial oversight.

Judges supervise voting in Egypt, so Mursi now needs them to oversee the referendum. Vice President Mahmoud Mekky said on Sunday he was confident the judges would perform that role, though Mursi's critics in the judiciary may call for a boycott.

While the Islamists' critics, including representatives of the Christian minority, have accused the Brotherhood of trying to hijack the constitution, investors appear to have seen Mursi's moves as a harbinger of stability. They were also relieved that Saturday's mass Islamist protest went off calmly.

The main stock market index, which lost a tenth of its value in response to Mursi's November 22 decree, rallied more than 2 percent when the market opened on Sunday.

"The events that took place through the weekend, from the approval of the final draft of the constitution and the president calling a referendum, gave some confidence to investors that political stability is on track," said Mohamed Radwan of Pharos Securities, an Egyptian brokerage.

But the political opposition, made up of leftist, liberal and socialist parties, have been infuriated by what they see as the Brotherhood's attempt to ram through a constitution that does not enjoy national consensus.

Mursi's opponents warn of deeper polarization ahead.

"LET EVERYONE HAVE THEIR SAY"

Leading opposition figure Mohamed ElBaradei said on Twitter that the "struggle will continue" over a draft constitution that "undermines basic freedoms".

Liberal figures, including former Arab League chief Amr Moussa, pulled out of the constituent assembly last month, as did Christian representatives.

The draft constitution contains Islamist-flavored language which opponents say could be used to whittle away human rights and stifle criticism. It forbids blasphemy and "insults to any person", does not explicitly uphold women's rights and demands respect for "religion, traditions and family values".

The New York-based Human Rights Watch said it protected some rights while undermining others.

The text limits presidents to two four-year terms, requires parliamentary approval for their choice of prime minister, and introduces some civilian oversight of the military - although not enough for critics. Mubarak ruled for three decades.

Mursi described it as a constitution that fulfilled the goals of the January 25, 2011 revolution that ended Mubarak's rule. "Let everyone - those who agree and those who disagree - go to the referendum to have their say," he said.

The Islamists are gambling that they will be able to secure a "yes" vote by mobilizing their core support base and many other Egyptians keen for an end to two years of turmoil that has taken a heavy toll on the economy.

Nafaa of Cairo University said the constitution would likely be approved by a slim majority. "But in this case, how can you run a country with a disputed constitution - a constitution not adopted by consensus?" he asked.

(Writing by Tom Perry; Editing by Alistair Lyon)

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