Schwarzenegger: Simple Austrian upbringing made me green


VIENNA (Reuters) - Arnold Schwarzenegger credited his simple upbringing amid the lakes and hills of Austria for a recent conversion to fully fledged green activism, the latest stage in his varied career.

The former body-builder, star of the "Terminator" action films and governor of California grew up in Thal, a small village in the Austrian province of Styria, and emigrated to the United States at the age of 21.

"Growing up in my house, we knew about sustainability before it was hip. We called it 'necessity'," Schwarzenegger told an environmental conference he hosted in Vienna this week.

"We didn't have video games, televisions or iPhones. We had the rolling hills, the castles, the ruins, and the beautiful lakes," he said. "Even after I made it big and became governor of California, I held on to this love of nature."

The "governator" - who left office and split with his wife of 25 years, Maria Shriver in 2011, has recently returned to making action movies - expressed surprise at the turn his life had taken, after he had thought all his ambitions fulfilled.

"When I was a little boy in Austria, all I could think about was moving to America, to become the greatest bodybuilder champion in the world and make millions of dollars and be an action hero," said Schwarzenegger.

"My dream became reality. Who knew my greatest achievement would be in the real world fighting for a green energy future? Green energy wasn't even in my vocabulary."

(Reporting by Derek Brooks; Writing by Georgina Prodhan, editing by Paul Casciato)

Austrian EU lawmaker investigated over "elephant" expenses


BRUSSELS (Reuters) - An Austrian member of the European Parliament is under investigation over suspect expenses claims totalling 1.3 million euros, including one item listed as "elephant".

In a request to the European Parliament to waive Hans-Peter Martin's immunity, the Vienna prosecutor's office said it suspected the independent MEP of embezzling public funds and making money "illicitly for himself or a third party by fraudulent means".

"It is suspected that, by using money for the reimbursement of election campaign costs for purposes other than those intended, Dr Hans-Peter Martin has committed crimes of misuse of funding ... and embezzlement," said the request, made last May and seen by Reuters.

Martin, 55, says the allegations are an invention by adversaries upset by his efforts to expose the parliament's waste of public funds.

"I see a direct link between the fact that I have made these things public and now false allegations being leaked to the press," Martin told Reuters last week.

Asked about some of the details and figures set out by the prosecutor, Martin said they were accurate but that no embezzlement was involved.

The prosecutor's request details a series of suspect or unexplained expenses that were claimed either in Austria or via the European Parliament.

Among them is a payment of 832,800 euros for "public relations work" that the prosecutor says was made to "businessmen who are friends of Dr Hans-Peter Martin, even though no (equivalent) services were provided".

Another concerns the employment of a parliamentary assistant at a cost of 67,343 euros. The prosecutor said it suspected the individual "never actually carried out work" for Martin in connection with his parliamentary activities.

One claim for 2,200 euros was identified in accounts as being for an "elephant".

Martin says he in fact meant to claim for books about Auschwitz from an Austrian publisher called "Ephelant". The publisher does offer such a book, priced at 22 euros. (http://www.ephelant-verlag.at/)

Parliament's legal affairs committee will meet this month to discuss Martin's immunity, a spokesman said. The assembly had already suspended Martin's immunity once at prosecutors' request, in September 2011.

Martin, a former journalist who has sat in the European Parliament since 1999, said he looked forward to clearing his name. "It if were up to me there would be no immunity in the first place," he said.

(Reporting By Claire Davenport; Editing by Luke Baker and Kevin Liffey)

Former first dog Barney Bush dies


President George W. Bush holds his dog Barney after arriving in Waco, Texas, in this December 26, 2007 file photo. Former first dog Barney Bush, the black Scottish terrier who romped on the White House grounds in George W. Bush s time there, has died at age 12, the former president said in a statement. The playful pooch had been suffering from lymphoma.

Barney played a starring role in the presidential mansion, notably in BarneyCam holiday specials featuring footage from a camera that caught a dog s eye view of senior aides like Karl Rove. He was also a reliable fixture on the White House website.

Bush announced his dog's passing in a statement:

Laura and I are sad to announce that our Scottish Terrier, Barney, has passed away. The little fellow had been suffering from lymphoma and after twelve and a half years of life, his body could not fight off the illness.

Barney and I enjoyed the outdoors. He loved to accompany me when I fished for bass at the ranch. He was a fierce armadillo hunter. At Camp David, his favorite activity was chasing golf balls on the chipping green.

Barney Bush, as painted by former president George W. Bush

Barney guarded the South Lawn entrance of the White House as if he were a Secret Service agent. He wandered the halls of the West Wing looking for treats from his many friends. He starred in Barney Cam and gave the American people Christmas tours of the White House. Barney greeted Queens, Heads of State, and Prime Ministers. He was always polite and never jumped in their laps.

Barney was by my side during our eight years in the White House. He never discussed politics and was always a faithful friend. Laura and I will miss our pal.

Hong Kong aims at smugglers in bid to stop run on baby formula milk


HONG KONG (Reuters) - Hong Kong introduced measures on Friday to tackle a shortage of baby milk formula as food-safety-conscious mainland Chinese people flock to the city to stock up on supplies ahead of a Lunar New Year holiday.

The Hong Kong government cut the luggage allowance on trains that connect the city to the mainland to 23 kg (50 lb) from 32 kg (70 lb) and limited the number of cans of milk powder a person can take back into the mainland to two per visit.

It said it would also set up a hot line from Friday evening allowing Hong Kong mothers to place orders for seven brands of infant formula and ensure that orders placed by this weekend are delivered by the new year holiday, which starts on February 10 and runs for a week in China, when most shops are closed.

A series of scandals involving food produced in China, including milk, has sapped the confidence of many mainland consumers, who have flocked to Hong Kong to shop, angering residents of the wealthy city who say the problem has led to shortages and pushed up prices.

"The scandals here definitely have had an effect," said Kevin Der Arslanian, a business analyst at China Market Research Group in Shanghai. "People don't trust necessarily that the product they buy is real or the quality is good."

High import taxes in China have also created a thriving grey market for traders who buy products tax-free in Hong Kong and take them on crowded trains across the border on trolleys, in suitcases or stuffed in their jackets, to resell for a profit.

Hong Kong was guaranteed a degree of autonomy when it returned to China under a deal that ended British rule in 1997. The baby-milk shortage is the latest in a string of issues that have troubled ties between the capitalist city and communist mainland.

Hong Kong people are so frustrated over the baby milk they have turned to U.S. President Barack Obama for help, launching a petition on a White House web site saying babies in the financial center faced malnutrition and their government is failing to solve the problem.

As of Friday evening, the petition had attracted 13,422 signatures since it was launched on Tuesday. It needs to secure 100,000 by February 28 to draw a response from the U.S. government.

Demand for Hong Kong's high quality and regulated infant formula brands shot up in 2008 when a melamine milk powder scandal made nearly 300,000 mainland Chinese children sick.

Cans of infant formula Frisolac Gold 1 were on sale for HK$260 ($33.52) at a pharmacy in Hong Kong's Mongkok district on Friday. It sells for 261 yuan ($41.97) at 360buy.com, an online retailer in China.

Pharmacy owner Charles Mui said he tried not to promote smuggling: "I only sell milk powder to customers who really use the products to feed their babies."

Chinese visitors have also been snapping up milk powder products in Europe and Australia, while the former Portuguese territory of Macau, across the mouth of the Pearl River from Hong Kong, announced a plan on Monday to give city parents priority in buying baby formula.

Recent fears over the quality of chicken in China hit sales at mainland branches of McDonald's and Yum's KFC, and further undermined consumer confidence.

($1 = 7.7555 Hong Kong dollars) ($1 = 6.2188 Chinese yuan)

(Additional reporting by Venus Wu and Stefanie McIntyre; Editing by Anne Marie Roantree and Robert Birsel)

Analysts greet BlackBerry launch with downgrades


(Reuters) - Research In Motion Ltd's glitzy unveiling of the long-delayed line of BlackBerry smartphones on Wednesday and a new corporate name failed to impress Wall Street analysts, with at least three downgrading the company's stock.

RIM, which renamed itself BlackBerry, showcased two devices, Z10 and Q10, running on its new BB10 operating system as the smartphone pioneer looks for a fresh start.

"Despite recent enthusiasm for RIM's new BB10 devices, we see limited scope for traction in the hypercompetitive smartphone market," Credit Suisse analysts wrote in a note.

RIM faces an uphill struggle in terms of gaining smartphone market share, the Credit Suisse analysts said, downgrading the stock to "underperform" from "neutral".

RIM's Nasdaq-listed shares were set to open 3 percent lower on Thursday. They closed 12 percent down on Wednesday at $13.78. Its Toronto-listed shares also fell by the same margin to close at C$13.86.

RIM launched its first BlackBerry in 1999 and quickly cornered the market for secure emails, but its market share plummeted after customers jumped ship to Apple Inc's iPhone and devices using Google Inc's Android technology.

Analysts at Evercore Partners said they did not expect the new BB10 devices to cause a stir among customers, and cut their rating to "equal weight" from "underweight".

"The new hardware and operating system is a dramatic improvement versus RIMM's older products but expect a muted consumer response due to RIMM's damaged brand image," they said.

Barclays Capital analysts wrote in a note that RIM had the best possible device launch it could have hoped for, but there were many challenges ahead.

The analysts said average sales prices might be too high for many emerging market users and raised questions about how quickly businesses would adopt the new devices.

Analysts were also concerned about the delay in the launch of the devices in the United States. RIM said the devices would not be available in the country until March.

National Bank Financial analysts said the delay was very disappointing since the U.S. enterprise, government and consumer is the most important market for the Z10.

The Z10 touchscreen device will be the first of the two models to hit the market, with a rollout that starts in Britain on Thursday.

(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Sriraj Kalluvila)

Earl Grey descendants sell English tea to China


TRURO, England (Reuters) - An estate owned by descendants of the 19th century British aristocrat for whom Earl Grey tea was named is turning history on its head by selling English tea to China.

The Tregothnan estate in the southwestern English county of Cornwall started selling tea from its tiny plantation in 2005 and last year produced about 10 metric tons (11.023 tons) of tea and infusions.

Although a drop in the ocean of global tea production, which the UK Tea Council estimated to be about 4.3 million metric tons, Tregothnan has found a niche for its products by trading on England's historical reputation as a nation of tea-lovers.

"It's unique. There's no one else who's growing tea in England and putting English tea on the market," owner Evelyn Boscawen told Reuters.

The long history of immersing tea leaves in hot water for a refreshing drink is not lost on the son of the current Viscount Falmouth and a descendant of British Prime Minister Charles Grey, for whom the bergamot-flavored Earl Grey tea is named and whose Reform Act of 1832 sowed the seeds of modern parliamentary democracy and universal suffrage in Britain.

Chinese tea has been coming to Britain since the East India Company first imported it in the 17th century for consumption by wealthy aristocrats.

By the Victorian era, taking tea had become a regular ritual at almost every level of society from elaborate afternoon tea for the rich in country houses to tea and gruel for the working poor as depicted by author Charles Dickens.

But the Boscawens at Tregothnan are bucking the historic trend of tea flowing from East to West by beginning to export some of their wares to China and elsewhere.

"We do see China as an opportunity at the moment," Boscawen said. "The Chinese are great lovers of buying exotic things from all over the world. Even if it might have come from China (originally)."

Tea, native to Asia, is not traditionally grown in Britain but can be cultivated outdoors at Tregothnan, which is situated in England's southwest and benefits from an unusual microclimate similar to that of Darjeeling in India.

Less similar to India is the tiny scale of production at Tregothnan, which might be large enough to be considered a small Darjeeling tea garden, the English estate's commercial and garden director Jonathan Jones said.

"We went into this right from the outset as being able to put the English into English tea," Jones said. "We weren't ever looking at being the new India or China, that's ridiculous."

HIGH TEA

Tregothnan projected sales of teas and infusions of 2 million pounds ($3.14 million) in 2013, with 1 million pounds coming from exports.

This is a miniscule sum in comparison to the global export market, with the world's largest black tea exporter, Kenya, predicting tea exports earnings of $1.33 billion in 2013.

But the small English operation is attracting attention, including from Chinese state television, which pitched up for several days of filming for a program to be aired in the coming months to hundreds of millions of viewers.

Tregothnan is also hoping to open a franchise of tea houses named "Festival of Tea", selling tea in a coffee-house style. They plan to open one such outlet this year in Shanghai, after "serious interest from Chinese investors," Jones said.

The export market is also a place where Tregothnan hopes to find customers willing to meet its higher prices. Small-scale production and its location means its teas can cost up to 20 times as much per cup as the cheapest market blends.

"We're in recession, but other countries aren't, so it makes sense to export," general manager Andy Phillips said. "The key is not to get dragged into competing on price."

Tregothnan has targeted the high end of the market in Britain, selling some of its products to expensive hotels like the Savoy and Claridge's, which are already major tourist destinations for expensive English afternoon teas.

Referencing the stereotypical English love of a good brew is a big part of Tregothnan's marketing strategy.

"There is no trouble so great or grave that cannot be much diminished by a nice cup of tea," is the quote attributed to Basque philosopher Bernard-Paul Heroux that adorns individual packets containing the estate's tea bags.

With a portion of its tea bushes nestled in the estate's pleasure gardens, Tregothnan looks more like a vast country estate than an agricultural business, and its owners live on the site which has been the family home since 1335.

Tregothnan's historic setting, with its imposing country house and graceful grounds, is important for the brand.

"It's an enormous story that goes into the whole product," owner Boscawen said.

Tregothnan is part of a wider trend of small tea producers in strange parts of the world, according to Jane Pettigrew, a tea expert and author of several books on the subject.

"People are planting tea in the most extraordinary places at the moment," she said.

"There are people in Hawaii growing tea, there are people in Canada planting tea, and there are people up in Scotland planting tea."

($1 = 0.6367 British pounds)

(Reporting By Hannah Vinter, editing by Stephen Eisenhammer and Paul Casciato)

Hawaii lawmakers propose shielding celeb privacy


HONOLULU (AP) More than two-thirds of Hawaii's state senators have signed onto a bill to protect celebrities from paparazzi, giving them power to sue over unwanted beach photos and other snapshots on the islands.

And the bill's author says he's pushing the law at the request of Aerosmith lead singer Steven Tyler, the former "American Idol" judge who recently bought a new home in Maui.

A representative for Aerosmith declined comment late Thursday night, saying Tyler was not immediately available.

Maui Democrat Sen. Kalani English told The Associated Press the so-called "Steven Tyler Act" will help Hawaii's tourism and film industries, encouraging famous people to come here without fear of being stalked by paparazzi.

"These are my consituents as well," English said. "Public figures have a right to reasonable privacy. There's a balance that we need to create."

The bill would open people up to civil lawsuits if they invade the privacy of public figures by taking or selling photos or videos. It defines invasion of privacy as capturing or trying to capture images or sound of people "in a manner that is offensive to a reasonable person" during personal or family moments. It does not specify places where pictures would be OK or whether public places would be exempt. The bill says it would apply to people who are take photos from boats or anywhere else within ocean waters.

"Although their celebrity status may justify a lower expectation of privacy, the Legislature finds that sometimes the paparazzi go too far to disturb the peace and tranquility afforded celebrities who escape to Hawaii for a quiet life," English wrote in the bill.

Longtime Hawaii media lawyer Jeff Portnoy said the legislation is vague and panders to celebrities.

"It's unnecessary, it's potentially unconstitutional and it flies in the face of decades of privacy law," he said.

He said that it's hard to know how the court would interpret the state constitutional provision for the right to privacy in terms of this bill, but that based upon privacy-related court precedents, the law would be unnecessary.

The bill has only been introduced and referred to committee; lawmakers haven't set a date to discuss it yet. While 18 of 25 of the state's senators have signed on, including the Senate majority leader, it's unclear whether the bill would stand a chance in the state House.

English said he believes the bill is constitutional. He said the state has a provision in its constitution to protect the right to privacy.

"Generally, we've respected people's privacy but we have a different time now," English said.

Like other destinations, Hawaii has a steady stream of high-profile visitors. President Barack Obama vacations on Oahu once a year with his family, while Lance Armstrong escaped to the Big Island last month after a tell-all interview with Oprah Winfrey at his home in Texas.

___

Anita Hofschneider can be reached on Twitter at http://twitter.com/ahofschneider .

Sony ignites talk of PS4 unveil with Playstation meeting


TOKYO (Reuters) - Sony Corp will this month host its first major Playstation meeting in two years, sparking a flare-up in online speculation the Japanese consumer electronics giant is preparing to unveil the successor to its 70 million-selling PS3 games console.

Sony declined to say whether it would release a new product at the meeting in New York on February 20. "We will be talking about the Playstation business," spokesman Masaki Tsukakoshi said on Friday. A Google search for "Sony Feb 20 Playstation" returned more than 7 million hits.

The last time Sony held a Playstation event, in January 2011, it presented a protoype of its handheld Vita console. Before that, it convened a gathering in 2005 two months after it first demonstrated the PS3 concept. A meeting in 1999 revealed designs for the PS2.

It has been more than six years since Sony launched the PS3 home console, a longer gap than between it and its PS2 predecessor, adding to the anticipation that it will soon disclose its next gaming concept.

Since Sony's last home console launch, the games market has been transformed by the boom in smartphones and tablet computers that have wooed players with free or cheap games.

Sony and other console makers Nintendo Co Ltd and Microsoft Corp now have to contend with competition from hand-held devices made by Apple Inc, Samsung Electronics and others.

Analysts expect that tablets and other mobile devices will match the power and graphics of today's games consoles within a few years.

Struggling under competitive pressure, Nintendo on Wednesday cut its sales target for the Wii U, successor to its 100 million-selling Wii, to 4 million machines by the end of March from its launch in November, compared with an earlier forecast for 5.5 million.

(Reporting by Tim Kelly; Editing by Daniel Magnowski)

Despite previous beating, Rihanna back with Chris Brown


NEW YORK (Reuters) - It's official: R&B diva Rihanna says she is back together with Chris Brown, who is still on probation for assaulting her in 2009, saying "It's different now."

"I decided it was more important for me to be happy," Rihanna told Rolling Stone magazine in an interview published on Wednesday on its website.

"I wasn't going to let anybody's opinion get in the way of that. Even if it's a mistake, it's my mistake," she said of her renewed romance with singer Brown, 23, that has prompted consternation from fans and celebrity media because of their history.

"After being tormented for so many years, being angry and dark, I'd rather just live my truth and take the backlash," said Rihanna, 24, adding, "I can handle it."

The couple's reconciliation had been rumored for months, even before the pair unveiled a duet, "Nobody's Business," in November. That track was included on Rihanna's latest album "Unapologetic."

Brown pleaded guilty in 2009 to beating and punching Rihanna. He was sentenced to community service, anger management classes, given a restraining order and is still on probation.

The Barbadian singer told Oprah Winfrey in an emotional interview in August that she and Brown now had a "very close friendship," and that she still loved him.

"When you add up the pieces from the outside, it's not the cutest puzzle in the world," Rihanna admitted to Rolling Stone, which hits newsstands this week with her gracing the cover above the headline, "Rihanna Crazy In Love."

"You see us walking somewhere ... and you think you know. But it's different now. We don't have those types of arguments anymore. We talk," she said. "We value each other."

But she noted that Brown is on probation with her as well, saying, "He doesn't have the luxury of (messing) up again."

"That's just not an option ... And I wouldn't have gone this far if I ever thought that was a possibility."

The interview was published three days after Brown's latest dustup, which involved fellow musician Frank Ocean, over a parking space at a West Hollywood recording studio. Ocean has said he wants Brown prosecuted following the Sunday brawl.

In 2012 Rihanna was rated by Time and Forbes magazines as among the world's and celebrity arena's most powerful people.

(Reporting by Chris Michaud; Editing by Jill Serjeant and Philip Barbara)

Smartphone cases - Built to survive drops, floods - and lawsuits?


NEW YORK (Reuters) - The smartphone patent wars have lit up courtrooms around the world. Next up: the smartphone case wars.

The makers of protective cases that shield cell phones from coffee spills and sticky-fingered toddlers are entangled in countless lawsuits seeking to protect their designs.

The fights come as the mobile accessories market has gone upscale with some cases made by luxury designers costing more than the phones they cover. Some cases are billed as virtually destruction-proof, said to protect precious electronics from crushing blows or cresting waves.

Smartphones themselves are at the heart of a global patent fight, with Apple Inc battling South Korean giant Samsung Electronics Co over the design of the iPhone and iPad.

But now similar fights are escalating over what swaddles the gadgets, as the smartphone case market has become a roughly $1 billion annual industry, according to NPD Group, a market research firm. More than 100 million Apple and Samsung phones were shipped in the most recent quarter, making for more demand.

The damage claims in the case design fights are tiny compared with the smartphone wars, but the lawsuits could help spur a shakeout in a crowded market.

The biggest industry players sell their products at Apple and AT&T Inc retail stores, as well as at retailers such as Best Buy Co Inc. They have had success in getting court judgments against Chinese counterfeiters and domestic sellers of knock-offs, but the lawsuits involving one designer against another aren't as easily resolved.

Otter Products Inc, the maker of OtterBox cases, has become a frequent visitor to the courthouse.

The Colorado-based company has filed lawsuits in federal court in its home state against LifeProof, also known as Treefrog Developments Inc, and Mophie LLC for alleged patent infringement involving waterproof cases for iPhones, iPods and other devices. Mophie and LifeProof in court papers have denied the allegations.

Otterbox and Mophie did not respond to requests for comment. LifeProof declined to comment on pending litigation. Company spokesman Jonathan Wegner said, however, that LifeProof has programs in place to protect its own intellectual property.

The Ballistic Case Co, based in Florida, has also been a repeat plaintiff. The company has sued rivals Cell-Nerds LLC and Boxwave Corp for allegedly copying the look of its rugged "Shell Gel" series of cases, which feature a dotted back and come in an array of colors.

Designers invest significant resources in case styles and deserve legal protection, said Alan Weisberg, a Ballistic attorney.

The company has sold more than $12 million worth of Shell Gel cases, according to court documents, and they are available at major retailers. Both Cell-Nerds and Boxwave are smaller enterprises that sell cases online. The Shell Gel models are priced at about $35, while similar Cell-Nerds and Boxwave cases go for less than $10.

Earlier this month, a Miami federal judge allowed Ballistic's case against Cell-Nerds to move forward, while the Boxwave case is in its early stages in the same court. Ballistic claims it has so-called "trade dress rights" to the design of its cases and wants similar, rival products off the market.

An attorney for Cell-Nerds, Ury Fisher, said the company does not think Ballistic has accurately described its trade dress rights, and he noted that such cases are difficult to prove because plaintiffs have to show their product is readily recognizable to consumers.

An attorney for Boxwave did not respond to a request for comment.

For patent-based lawsuits to succeed, plaintiffs will need to prove another company is infringing their patents and may also have to show what is innovative about their designs and worthy of protection.

If found to infringe, some companies could be forced out of the market, said intellectual property attorney Christopher Carani of law firm McAndrews, Held & Malloy.

So far, however, the in-fighting among case designers does not show signs of slowing down the industry.

Casemakers have trotted out models they say are tricked out to withstand two tons of force or can be used to film movies underwater. At the recent Consumer Electronics Show in Las Vegas -- where new case designs seemed to be on display everywhere -- one maker even showed off a case lined in soft orange putty that is designed to become "rock hard" if the phone is dropped.

(Reporting By Erin Geiger Smith; Editing by Martha Graybow and Kenneth Barry)